nevadamedic
05-26-2007, 05:07 AM
Lt. Gov. Brian Krolicki took $10,000 in campaign contributions from a San Francisco law firm that was paid nearly $1 million for work on the Nevada college savings program he managed when he was state treasurer, according to public documents.
The firm of Orrick, Herrington & Sutcliffe also overcharged the state about $90,000, billing a per-hour rate of $428 per hour instead of the
$225 per hour the firm was charging for the state's bond work, according to a state audit of the program.
The audit concluded Krolicki's office broke three state laws and violated other procedures in managing the state's earnings in the $3.3 billion program.
The audit also showed no hint of fraud or missing money.
Krolicki said nothing improper was done in taking the contributions from the San Francisco firm.
"It was taken lawfully, given lawfully and fully disclosed," Krolicki said Wednesday.
The first contract between the firm and the treasurer's office was in 2000, according to the audit. The contributions were listed as two separate $5,000 contributions on Krolicki's 2005 campaign contribution report filed with the secretary of state.
Krolicki said he also received $5,000 from former Georgia Treasurer Steven McCoy, owner of the Georgia consulting firm GIF Services that had, the audit said, been allowed to retain $3.2 million that should have been given to the state.
Former Nevada Treasurer Bob Seale, considered by many as Krolicki's mentor, is a former marketing consultant for GIF.
The Las Vegas Sun reported last year that records show Krolicki received at least $50,000 in cash and in-kind political donations from McCoy and his associates since 1998. The arrangement may be legal but looks bad, Senate Minority Leader Dina Titus, D-Las Vegas, said.
"It is just what you see so much in Nevada," Titus said. "I call it pay to play, that cozy relationship between donors, contributors and policy.
"He (Krolicki) is not the only one but it is unfortunate because it gives Nevada yet another black eye."
The audit has been given to Attorney General Catherine Cortez Masto, who has promised an aggressive investigation into the findings.
Cortez Masto said she also would investigate allegations that state documents were shredded and computer files erased late in Krolicki's second term as state treasurer. He was elected lieutenant governor in 2006 after eight years as treasurer.
Cortez Masto would not comment on the campaign contributions Wednesday, citing the ongoing investigation.
The attorney general's investigation should also include the campaign donations, leading Democrats said.
"I would hope this is something that the attorney general will look into," Assemblywoman Sheila Leslie, D-Reno and chairwoman of the legislative audit subcommittee, said. "It looks very suspicious at the very least.
"The contractor was chosen without a competitive bid process and then provided campaign contributions."
Although the treasurer's office had an existing contract with Orrick, Herrington & Sutcliffe, it did not include work with the college savings program, according to the audit.
In 2001, a trustee of the college saving program asked Krolicki if the program was going to use an existing contract with the law firm or enter into a new contract, according to the audit. Krolicki said the existing contract with the firm for bond services would be amended. That never happened and the trustees did not sign or approve contracts for legal services in later years, according to the audit.
"There is enough smoke that there may be a fire," Leslie said. "I don't know if there is a fire but there might be."
Krolicki insisted there's neither smoke nor fire.
"If you are saying that I can't or any elected official can't do any work with a corporation that has given them a financial contribution, well that is far beyond me," Krolicki said. "There are campaign laws that we adhere to. It is ethical, it is right and it is our process. When you are raising millions of dollars, well, we did it right."
Republicans said they could not see any conflict.
"I don't know if there was any conflict," Assembly Minority Leader Garn Mabey, R-Las Vegas, said. "The money was donated correctly. It was disclosed.
"That's part of politics, unfortunately, You get a contribution from somebody and hopefully that doesn't change the way you vote or how you feel."
http://news.rgj.com/apps/pbcs.dll/article?AID=/20070525/NEWS01/705250482/1321/NEWS
I know this guy personally and worked on his campaign. There was never any wrong doing, this guy is the cleanest guy in politics that I ever met. State Senator Din Titua is a sore looser. She keeps getting decimated anytime she try's to run for a major office. She has tried to dig up dirt on just about every Repubican. If she couldn't find dirt, she makes it up. She did that when she ran for Governor this past election and lost. I know first hand becaus I worked on her opponents campaign, I was actually a County Manager/County Coordinator, and I saw lies she made up first hand, and we were able to proove every bit of it.
The firm of Orrick, Herrington & Sutcliffe also overcharged the state about $90,000, billing a per-hour rate of $428 per hour instead of the
$225 per hour the firm was charging for the state's bond work, according to a state audit of the program.
The audit concluded Krolicki's office broke three state laws and violated other procedures in managing the state's earnings in the $3.3 billion program.
The audit also showed no hint of fraud or missing money.
Krolicki said nothing improper was done in taking the contributions from the San Francisco firm.
"It was taken lawfully, given lawfully and fully disclosed," Krolicki said Wednesday.
The first contract between the firm and the treasurer's office was in 2000, according to the audit. The contributions were listed as two separate $5,000 contributions on Krolicki's 2005 campaign contribution report filed with the secretary of state.
Krolicki said he also received $5,000 from former Georgia Treasurer Steven McCoy, owner of the Georgia consulting firm GIF Services that had, the audit said, been allowed to retain $3.2 million that should have been given to the state.
Former Nevada Treasurer Bob Seale, considered by many as Krolicki's mentor, is a former marketing consultant for GIF.
The Las Vegas Sun reported last year that records show Krolicki received at least $50,000 in cash and in-kind political donations from McCoy and his associates since 1998. The arrangement may be legal but looks bad, Senate Minority Leader Dina Titus, D-Las Vegas, said.
"It is just what you see so much in Nevada," Titus said. "I call it pay to play, that cozy relationship between donors, contributors and policy.
"He (Krolicki) is not the only one but it is unfortunate because it gives Nevada yet another black eye."
The audit has been given to Attorney General Catherine Cortez Masto, who has promised an aggressive investigation into the findings.
Cortez Masto said she also would investigate allegations that state documents were shredded and computer files erased late in Krolicki's second term as state treasurer. He was elected lieutenant governor in 2006 after eight years as treasurer.
Cortez Masto would not comment on the campaign contributions Wednesday, citing the ongoing investigation.
The attorney general's investigation should also include the campaign donations, leading Democrats said.
"I would hope this is something that the attorney general will look into," Assemblywoman Sheila Leslie, D-Reno and chairwoman of the legislative audit subcommittee, said. "It looks very suspicious at the very least.
"The contractor was chosen without a competitive bid process and then provided campaign contributions."
Although the treasurer's office had an existing contract with Orrick, Herrington & Sutcliffe, it did not include work with the college savings program, according to the audit.
In 2001, a trustee of the college saving program asked Krolicki if the program was going to use an existing contract with the law firm or enter into a new contract, according to the audit. Krolicki said the existing contract with the firm for bond services would be amended. That never happened and the trustees did not sign or approve contracts for legal services in later years, according to the audit.
"There is enough smoke that there may be a fire," Leslie said. "I don't know if there is a fire but there might be."
Krolicki insisted there's neither smoke nor fire.
"If you are saying that I can't or any elected official can't do any work with a corporation that has given them a financial contribution, well that is far beyond me," Krolicki said. "There are campaign laws that we adhere to. It is ethical, it is right and it is our process. When you are raising millions of dollars, well, we did it right."
Republicans said they could not see any conflict.
"I don't know if there was any conflict," Assembly Minority Leader Garn Mabey, R-Las Vegas, said. "The money was donated correctly. It was disclosed.
"That's part of politics, unfortunately, You get a contribution from somebody and hopefully that doesn't change the way you vote or how you feel."
http://news.rgj.com/apps/pbcs.dll/article?AID=/20070525/NEWS01/705250482/1321/NEWS
I know this guy personally and worked on his campaign. There was never any wrong doing, this guy is the cleanest guy in politics that I ever met. State Senator Din Titua is a sore looser. She keeps getting decimated anytime she try's to run for a major office. She has tried to dig up dirt on just about every Repubican. If she couldn't find dirt, she makes it up. She did that when she ran for Governor this past election and lost. I know first hand becaus I worked on her opponents campaign, I was actually a County Manager/County Coordinator, and I saw lies she made up first hand, and we were able to proove every bit of it.