Judge recuses self in Krolicki case

CARSON CITY, Nev. - A Las Vegas judge recused herself Tuesday from the criminal case against Nevada Lt. Gov. Brian Krolicki and his aide, citing a conflict of interest.

The move by Clark County District Judge Elissa Cadish leaves the status of the case in question and follows her own disclosure last week that she is a former law partner of Scott Scherer, an attorney who assisted Krolicki during the early days of the investigation in 2007.

Cadish and Scherer worked at the same firm for two months before Cadish was appointed to the bench in 2007.

Krolicki and his chief of staff, Kathryn Besser, were indicted by a Clark County grand jury in December on charges they mishandled millions of dollars in the Nevada College Savings Program, a public-private initiative that helps students and parents save money for school.

No money is missing and Krolicki, who was state treasurer at the time, is not accused of embezzlement. Both he and Besser have maintained they're innocent.

Krolicki was charged with two counts of misappropriation and falsification of accounts by a public officer, and two counts of misappropriation by a treasurer.

Each is a felony and carry a possible sentence of up to four years.

Besser was charged with being a principal to misappropriation and falsification of accounts and being a principal to misappropriation by a treasurer.

The charges arose from a 2007 audit of the more than $3 billion program. Auditors said Krolicki skirted budget controls and spent more on an advertising campaign than allotted by the Legislature.

Kent Robison, Krolicki's lead attorney in Reno, said Cadish did not become aware of the conflict until she was reviewing grand jury testimony and Scherer's name came up.

It was unclear if existing rulings, including Cadish's disqualification of the attorney general's office from prosecuting the case, will remain in effect or be reconsidered by a new judge.

Oral arguments are scheduled Aug. 31 before the Nevada Supreme Court on the attorney general's office appeal of being disqualified from the case.

The state Board of Examiners approved a two-year, $415,000 contract Tuesday with Las Vegas lawyer Dominic Gentile to act as a special prosecutor in the case.

Attorney General Catherine Cortez Masto told the board the contract could be voided if her office is deemed fit by a new judge to prosecute the case.

"It has long been a rule in this state that the orders entered by a disqualified judge are not merely voidable but void," added Chief Deputy Attorney General Christine Guerci-Nyhus, who spoke to the board via a video hookup from Las Vegas.