Lt. Gov. Krolicki under indictment

As anticipated, Nevada Democratic Attorney General Catherine Cortez Masto has prevailed upon a grand jury to indict Republican Lt. Gov. Brian Krolicki on charges stemming from his management of a multibillion-dollar college savings program while he served as Nevada's state treasurer.

The Clark County grand jury indictment handed up Tuesday names Mr. Krolicki and Kathryn Besser, his former chief of staff in the treasurer's office.

The indictment accuses Mr. Krolicki of two counts of misappropriation and falsification of accounts by a public officer and two counts of misappropriation by a treasurer. The four counts all are felonies; each carries a possible sentence of up to four years in prison.

Ms. Besser faces two counts, including being a principal to misappropriation and falsification of accounts and being a principal to misappropriation by a treasurer.

The indictments don't allege any funds actually turned up missing.

The first-term lieutenant governor quickly called a news conference Wednesday to deny the charges. He said the indictment was the result of "a secretive process" that was unfairly orchestrated by the attorney general. "I can now begin defending myself in the fairness of an open courtroom and can clearly demonstrate that these accusations are false," he said.

Mr. Krolicki, 47, was the first Republican to announce his plans to run against U.S. Senate Majority Leader Harry Reid, who is up for re-election in 2010. Lt. Gov. Krolicki has said he was targeted for political reasons by the attorney general -- and that Sen. Reid was involved.

Representatives of Ms. Masto and Sen. Reid, both Democrats, deny such motivations. Chief Deputy District Attorney Conrad Hafen wouldn't comment on what prosecutors believe Mr. Krolicki's motive might have been.

The indictments follow a 2007 audit that found budget controls were bypassed in the $3.7 billion Nevada College Savings Program.

Legislative auditors said more than $6 million in state funds were used to pay for program expenses in excess of amounts authorized by lawmakers. Also, auditors said the funds were handled outside the state's accounting system and that the treasurer's office hadn't set up accounting or internal control procedures.

The indictment alleges Mr. Krolicki improperly accounted for money earned by the state through contracts with Upromise Inc., a company that creates college savings accounts. The company is not accused of wrongdoing.

Mr. Krolicki has disputed the report's findings, saying auditors were "simply wrong." And the indictment itself is woefully short on specifics, while Ms. Cortez Masto has yet to offer any details regarding the case.

The lieutenant governor says he's anxious for his day in court. Good. Here's hoping both sides will cooperate to arrange a full, open and expedited airing of all the evidence.

Because the Democratic attorney general surely knows some may suspect partisan motivation -- taking a possible challenger to Nevada Democratic godfather Harry Reid out of commission -- it's to everyone's benefit to avoid seeing these proceedings drag out into the 2010 campaign season.

Given the circumstances, one presumes the attorney general -- and Mr. Hafen, who has a reputation for competence -- believe they have a solid case, including evidence of motive and willfulness in the alleged misconduct.

Now, they must prove it.