Krolicki asks judge to oust AG’s office from misappropriation case

Attorneys for Lt. Gov. Brian Krolicki asked a District Court judge this morning to disqualify the state attorney general's office from prosecuting him on felony charges that he misappropriated state funds while serving as a state treasurer.

The charges stem from Krolicki's handling of the $3.3 billion state college savings program. The attorney general's office accused Krolicki of misappropriating about $6 million in fees earned by he program and not depositing it in state accounts, as required by law. The funds are accounted for and Krolicki is not accused of embezzlement.

Attorney Margaret Stanish said it's improper for the attorney general's office to prosecute Krolicki because the office had given a "green light" to contracts related to the college savings program. She also said Krolicki was merely carrying out his duties as state treasurer when he went forward with the college savings program.

"This is not the stuff of criminal activity," she said.

District Judge Elissa Cadish did not make a decision in the case but will in the future.

Krolicki, 48, who attended the hearing in Las Vegas, said after the hearing that many people helped him create the college savings program, including legislators and the attorney general's office.

"All their fine work, including from the attorney general's office, is now being prosecuted by the same attorney general's office," he said. "I think it's absurd, sad and outrageous."

A Clark County grand jury indicted Krolicki and his chief of staff, Kathy Besser, on multiple felony charges. 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 is charged with two counts of being a principal to misappropriation and falsification of accounts and being principal to misappropriation by a treasurer. She served as chief of staff in the treasurers office starting in 2001 and later served as chief of staff in the lieutenant governor's office.