People v. Krolicki: The indictment
Although we’ve dished out approximately 75 maritime tons of abuse to Lt. Gov. Brian Krolicki, it seems that we at Various Things & Stuff were actually going light on the guy. (By the way, we didn’t blog much last week because we were deep in the vault at Marvel Studios in Beverly Hills, Calif., learning that Krolicki’s closely held secret identity is … Weaselman! He’s an arch-villain in an abortive series of comics call The Obsequious Bunch, which also featured another Nevada name, one Regent Bret Whipple.)
Anyway, recent revelations caused us to empanel up the Various Things & Stuff grand jury, which today handed up this stinging indictment of our state’s No. 2:
COMES NOW, the people of the state of Nevada, and charge that:
Brian K. Krolicki, lieutenant governor of the state of Nevada since the first day of January of the year of our Lord 2007, and state treasurer of the state of Nevada from the year of our Lord 1998 until his ascension into his current post, willfully, knowingly, and unlawfully committed the following crimes against the peace, dignity and morals of the state of Nevada, to wit:
Count 1: Usurpation of state contracts for personal advancement
Krolicki, acting in his official capacity as treasurer of the state of Nevada, caused or allowed himself to be featured in television and print media advertisements for the Nevada college tuition savings plan. Although the advertising for this program was called for under state contracts, there was no requirement (nor good cause) whatsoever for Krolicki to personally appear in those ads, and doing so gave him a political and personal advantage in an amount exceeding $1.1 million.
Mitigating factor: The Various Things & Stuff grand jury takes note of the fact that the state Ethics Commission reviewed this situation and found that Krolicki did not act improperly in appearing in the ads, which he claimed at the time were not paid for with state funds. However, the Ethics Commission erred in its application of the law, and did not have all the facts available to us in the instant case. Therefore, the commission’s exoneration of Krolicki is no bar the instant indictment, nor a safe harbor therefrom.
Count 2: Unlawful diversion of state funds
Krolikci has always claimed that taxpayer money was never used for the free ads with which he enjoyed by virtue of his position in state government. However, current state Treasurer Kate Marshall has discovered that $3.4 million intended for state coffers in the form of fees paid by Boston-based UPromise — the company managing the state college savings plan — was actually diverted to pay for the ads.
Outside of $1 million spent with Sacramento, Calif.-based Orrick, Herrington & Sutcliffe (which donated $22,000 to Krolicki’s various campaigns), $2.2 million was spent with Reno-based Rose-Glenn Advertising (which contributed $6,500 to Krolicki’s various campaigns and produced the Krolicki-fronted TV ads). Those ads were supposed to have been paid for by UPromise, which was required to spend $500,000 per year on marketing.
"There are clear answers to all these questions. I am not sure why we reached this level of frenzy," Krolicki said at a news conference after Marshall had made the discrepancies known to the Legislature.
He also admitted that it was possible that funds were taken from the state’s "bucket," and placed in the UPromise "bucket," and wondered why his treasurer’s office chief of staff, Kathy Besser, would have signed off on such a transfer. The Various Things & Stuff grand jury considers Besser an unindicted co-conspirator to this indictment.
However, Krolicki, as the elected constitutional officer overseeing the college savings program and the contracts executed thereunder, had an affirmative duty to the people of the state to ensure that public monies were collected when due, and not misspent. If Marshall is correct (an audit is pending) then Krolicki failed miserably in that duty.
Count 3: Conflict of Interest
By negotiating contracts with UPromise for marketing — and knowing full-well he was going to appear in the ads and benefit from the publicity at no cost to himself or his political campaign fund, Krolicki placed himself in a direct conflict of interest. His duty of loyalty to the people of the state of Nevada was subverted and compromised by his desire to appear in ads paid for by the parties with whom he was negotiating, and therefore the potential existed for the state to be defrauded.
Count 4: Theft and/or destruction of public records
Upon her swearing in as treasurer of the state of Nevada, Marshall discovered that files and e-mails properly belonging to the office of the treasurer were missing. Krolicki admitted purging those records, although he claimed he did so in accordance with state policy. "If it’s clutter, you get the clutter out of the filing cabinets," he said.
While Nevada law contains no definition of "clutter," it does contain a definition of "public record" at NRS 239.005. And NRS 239.300 provides that any person who "removes … destroys [or] conceals" a public record is guilty of a category C felony.
Krolicki maintains "I adhered to the letter and intent of all laws for the retention of physical and electronic records in my office. I’m proud of the office. We left it well." And again, "I have been completely open. I am an open book."
Nonetheless, Marshall testified that staff members in her office who had worked under Krolicki told her they were ordered to destroy documents as part of the transition without regard to record retention laws.
Count 5: Obstruction of justice
To the extent, if any, that the files and e-mails that were stolen or removed in order to conceal the other crimes charged in this indictment, or that they pertain to matters covered in this indictment that would have more quickly been discovered had the records not been removed, Krolicki may have acted to obstruct justice.
Count 6: Conferral of unwarranted benefits
Prior to leaving the office of the treasurer for the office of the lieutenant governor, Krolicki amended the contract with UPromise and investment firm Vanguard. (The contract term would not terminate for approximately 20 years.) Prior to the amendment, both firms were required to pay the state a percentage for each college savings account. Subsequent to the amendment, both firms were required only to pay a "flat fee," to the state.
While Krolicki claimed the firms threatened to remove their business from the state unless they received a "better deal," the fact remains that Krolicki approved terms far more favorable to both firms (despite a lengthy term). Given the conflict of interest charged in Count 3 and the usurpation charged in Count 1, this appears to be the granting of an unwarranted benefit upon at least one firm that assisted Krolicki with more than $1 million in free publicity.
Conclusion
Therefore, based upon the foregoing, and good cause appearing therefor, the Various Things & Stuff grand jury charges that Krolicki is guilty of high (and low) crimes and misdemeanors, and that he should no longer hold any office of trust or profit under the state of Nevada.
FURTHER, the Various Things & Stuff grand jury sayeth naught.
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