Former treasurer seeks dismissal of misappropriation charges

Attorneys for Lt. Gov. Brian Krolicki said Wednesday they will ask a judge to dismiss misappropriation charges against him because they are being pursued in the wrong jurisdiction.

Attorneys, who said they will file the request to dismiss Friday, said that all of the offenses are alleged to have taken place in Northern Nevada and that witnesses are in the north.

The attorneys said it was improper for the state attorney general's office to use a Clark County grand jury to indict Krolicki and his chief of staff, Kathy Besser, on misappropriation charges related to the state's college savings program.

"Why are we here?" attorney Kent Robison asked.

He spoke after a brief hearing in District Court to determine who would prosecute Krolicki and Besser.

Authorities accuse Krolicki 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.

The funds have been accounted for, and Krolicki is not charged with embezzlement.

Krolicki was indicted 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. She became chief of staff in the treasurer's office in 2001 and later was chief of staff in the lieutenant governor's office.

Krolicki and Besser have maintained their innocence.

During the hearing, Chief Deputy Attorney General Christine Geurci-Nyhus said that prosecutors with the Clark County district attorney's office, the Henderson city attorney's office and two rural counties declined to take the case. District Judge Elissa Cadish previously disqualified the attorney general's office from prosecuting Krolicki and Besser.

The attorney general's office has filed a request with the Nevada Supreme Court to throw out Cadish's ruling.

Geurci-Nyhus said the attorney general's office has identified three special prosecutors who could take over the case. The attorneys are from Nevada, California and Arizona.

The state would need to approve any special prosecutor.

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