Attorney general asks state Supreme Court to intervene in Krolicki case

The state attorney general's office Friday asked the Nevada Supreme Court to throw out a judge's decision that disqualifies the agency from prosecuting Lt. Gov. Brian Krolicki on charges that he misappropriated state funds.

District Judge Elissa Cadish "manifestly abused" her discretion when she ruled on May 19 that the attorney general can't prosecute Krolicki, wrote Chief Deputy Attorney General Christine Guerci-Nyhus.

She wrote that state law allows the attorney general's office to go after state employees who break the law. It's not a conflict of interest, she wrote, to prosecute a state official even after the attorney general gave the official legal advice.

"The Attorney General has primary jurisdiction to investigate and prosecute crimes committed by state officers and state employees related to their positions with the state," she wrote.

Krolicki is accused of misappropriating about $6 million in fees earned by the state's college savings program by not depositing it in state accounts, as required by law.

His chief of staff, Kathy Besser, is facing similar charges.

Krolicki oversaw the program while serving as state treasurer. He is not charged with embezzlement and all funds have been accounted for.

Besser and Krolicki have maintained their innocence. Krolicki has criticized the prosecution as being politically motivated.

Krolicki's defense team asked Cadish earlier this month to disqualify the attorney general from prosecuting them.

The defense team said, in part, that the attorney general's office can't prosecute the pair because the agency had previously advised Krolicki on contracts for the $3.3 billion college savings program.

Cadish ruled that this is an "extreme case" where the attorney general shouldn't prosecute.

Guerci-Nyhus stated that a court must hold a hearing to determine if there is an "extreme situation" where disqualifying the attorney general is proper.

That wasn't done in this case, she stated.

Cadish is scheduled on June 3 to hold a hearing to determine who will prosecute Krolicki and Besser.

Legal experts said the Clark County district attorney's office could prosecute the lieutenant governor.

Authorities could also assign a special prosecutor to the case.

A Clark County grand jury indicted Krolicki on two counts of misappropriation and falsification of accounts by a public officer and two counts of misappropriation by a treasurer.

Besser was charged with two counts of being a principal to misappropriation and falsification of accounts and being a principal to misappropriation by a treasurer.

Contact reporter David Kihara at dkihara@reviewjournal.com or 702-380-1039.