News

No appeal in Krolicki prosecution

  • Catherine Cortez Masto
    Disagrees with judge dismissing charges

Correction -- 12/11/09 -- The original version of this story attributed a statement by Judge Valerie Adair to the wrong party's argument. Adair said a defense argument was "without merit or not properly before the court."
By BENJAMIN SPILLMAN
LAS VEGAS REVIEW-JOURNAL
Posted: Dec. 11, 2009 | 10:00 p.m.
Updated: Dec. 12, 2009 | 12:36 a.m.

Nevada Attorney General Catherine Cortez Masto said Thursday she will drop the criminal case against Lt. Gov. Brian Krolicki, despite maintaining that he committed felonies and that her job is to make "elected officials be accountable to the public."

The unprecedented case neared an end Monday when a judge in Las Vegas tossed it out of court. District Judge Valerie Adair said the state's indictment was "not sufficient and does not satisfy due process."

On Thursday Masto met with reporters to explain why she won't appeal the decision or move to reindict despite her insistence that Krolicki broke the law in his handling of $6 million in the Nevada College Savings Program.

"I do not believe it is in the best interests of the state to proceed further with this case," she said. "A consideration in my office also was the resources and the limited resources that we have at this point in time. We have priorities in this office with other cases, as well."

Krolicki, charged with two counts of misappropriation and falsification of accounts by a public officer and two counts of misappropriation by a treasurer, maintains his innocence. The Republican and his supporters allege the case by Masto, a Democrat, was politically motivated.

Masto denies the accusation. "I brought this case in good faith to a grand jury," said Masto during a news conference. "The money in question was not the treasurer's to spend."

Krolicki said he's happy to put the case behind him.

"Obviously I welcome the closure to this long and absurd ordeal," he said. "This whole legal matter has been very upsetting, certainly to my family and those around me."

The case centered around Krolicki's management of the college fund during his tenure as state treasurer.

Masto says from 2001 to 2006 Krolicki kept proceeds from the program under his control in the treasurer's office for marketing and other expenses when the money should have been sent to the state's general fund.

Krolicki described the program as one of the most successful of its kind in the country. He said it wasn't until after he left the office that state law was changed to require all the proceeds be sent to the general fund.

Some of the money, an estimated $1.5 million, was used on marketing that included advertisements that included Krolicki.

Masto alleged the ads benefited Krolicki by raising his political profile.

But Krolicki is far from being the first public officeholder to combine personal image with an official program or duty.

Current state treasurer Kate Marshall appears in print advertisements promoting her office's unclaimed property auctions.

Las Vegas mayor and chairman of the Las Vegas Convention and Visitors Authority Oscar Goodman has raised his personal profile in part by frequently appearing with showgirls paid for by the taxpayer funded authority.

No one in an official capacity has suggested that Marshall and Goodman are abusing their power.

"If somebody can, everybody should be able to," said Krolicki consultant Ryan Erwin about appearing in advertisements and promotions. "The playing field should be level."

The decision by Masto to pursue a criminal case despite no evidence Krolicki enriched himself and when no money was missing is unprecedented in Nevada, said Guy Rocha, a retired state archivist.

In 2004 state controller Kathy Augustine was impeached by the Legislature in part for violating state law by using her personal assistant to perform campaign duties while on state time.

"Those are always handled outside the criminal justice system," Rocha said of misconduct by state officers that doesn't clearly demonstrate criminal intent. "This is a first, and maybe along this line, hopefully a last."

The indictment against Krolicki was returned Dec. 4, 2008, not long after Krolicki talked openly of possibly challenging Sen. Harry Reid, D-Nev., for his seat.

At first Krolicki and his supporters alleged the prosecution was an attempt to derail his potential candidacy, although no one produced evidence to prove the case was politically motivated.

But the political motivation theory gained new steam last month when it became public that Masto's husband, Paul Masto, was planning a political fundraiser on behalf of Robert Randazzo, a Democratic candidate for lieutenant governor. Masto says she didn't know about the fundraiser, which was subsequently canceled.

University of Nevada, Reno political science professor Eric Herzik says it is unlikely Masto will face official sanctions for the failed prosecution.

But he says it hurt her political credibility.

"Her competence has to be questioned. Her political and legal judgment has to be questioned," Herzik said. "I just don't have a good explanation for it. It is hard to swallow there was no political motivation in this legal travesty. Who was behind it? I don't know."

The case against Krolicki's chief of staff, Kathryn Besser, also has been dropped.

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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  1. Tonja.Brown Dec. 11, 2009 | 8:09 p.m. Report Abuse

    Justicefornolanklein.com

  2. Tonja.Brown Dec. 11, 2009 | 8:07 p.m. Report Abuse

    pt. 4 On the June 24, 2009 Agenda you list considering hearing cases of those who maintain their innocence, yet, again you turn a blind eye to the truth. Why? I made a promise to an innocent man that I would do whatever it takes to bring the truth out and if it means exposing the corruption then so be it. We will be filing a Petition for Exoneration and if it means taking it all the way to the United States Supreme Court we will do it. In the meantime I pray that there will be a federal investigation into the Washoe County District Attorney’s Office and if it means that in order to protect the innocent that the guilty go free, then so be it. It falls on this PARDONS BOARD’S MEMBER’S HEADS.http://www.leg.state.nv.us/74th/Interim_Agendas_Minutes_Exhibits/Exhibits/AdminJustice/E112108L.pdf

    Tonja Brown

  3. Tonja.Brown Dec. 11, 2009 | 8:04 p.m. Report Abuse

    On June 24, 2009 I asked that you adopt a policy by sanctioning and or disbarring those prosecutors who cover up evidence and lie to the Pardons Board. Again, you do nothing. But, when it comes to your family or friends you do everything to protect them, such as, Justice Hardesty did when he wrote a letter to a Federal Judge on behalf of one of the co-defendants in one of the largest LSD drug Bust in Reno’s history. This co-defendant received approximately 6 months in a federal prison. Pretty nice when compared to those drug traffickers who have appeared before you. And let us not forget that years ago Justice Hardesty knew that there were on going problems with the missing DNA in Mr. Kleins case. Missing DNA was presented to this Board when Mr. Klein appeared before you and you denied him a Pardon.

  4. Tonja.Brown Dec. 11, 2009 | 7:58 p.m. Report Abuse

    Masto covered up the Washoe County DA's wrong doings that led to an innocent dying in prison. This information can be found in the public record of June 24, 2009 and November 19, 2009 Pardons Board hearings. This is what was placed on the record by me, Tonja Brown pt. 1November 19, 2009
    Pardons Board :: On June 24, 2009 I appeared before this Pardons Board to bring it to your attention the ILLEGAL acts within in the Washoe County District Attorney’s Office. I presented you with the documentation, the hand written notes that former ADA Ron Rachow made on the Motion for Discovery 21 years ago. Mr. Rachow violated BRADY V MARYLAND by withholding all of the Materiality and Exculpatory evidence that showed another person was responsible for the crime in which my innocent brother, NOLAN KLEIN, was convicted of. Not only did Mr. Rachow withhold the evidence that would have cleared an innocent man, several employees within the Washoe District Attorney’s Office knew about this AND SAID NOTHING OVER THE LAST 21YEARS!! In fact, ADA John Helzer appeared before this Board on October 29, 2008 stating he looked in Mr. Klein’s file. He looked, he saw and HE SAID NOTHING ABOUT THE OTHER SUSPECT, Mr. Zarsky to you. The Sparks Police Department’s theory was that Mr. Zarsky was responsible for this crime as well as other crimes in which those other victims cleared my innocent brother, Nolan Klein. ALL OF THIS WAS WITHHELD FOR 21 YEARS IN VIOLATION OF BRADY V MARYLAND and EVERY MEMBER OF THIS PARDONS BOARD BOARD KNEW IT AND CHOSE TO DO NOTHING .

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