Delaware state auditor acquitted of one charge; two others upheld

By Craig Anderson

DOVER — State Auditor Kathy McGuiness’ bid for a complete acquittal or a new trial in the case against her has been denied.

Superior Court Judge William C. Carpenter Jr., who oversaw the jury trial that concluded July 1, rendered his decision on those motions Tuesday.

While Ms. McGuiness was acquitted on the charge of structuring: noncompliance with procurement code, the guilty verdicts against her on the counts of conflict of interest and official misconduct stayed in place. All are misdemeanors. The Kent County jury also found Ms. McGuiness not guilty of felony theft and witness-intimidation charges at trial.

Additionally, a motion for a new trial was denied Tuesday. As part of his 37-page decision, the judge said that “the Court finds that the defendant was provided a fair trial, one (in which) she was given significant latitude to explore all aspects of the investigation and prosecution.”

Ms. McGuiness, a Democrat, is running for reelection this year. Asked if the judge’s decision will affect her campaign in any way, she responded, “Not at all.”

The auditor’s attorney, Steve Wood, issued a statement just after 8 a.m. Wednesday. He noted plans to appeal the guilty findings to the Delaware Supreme Court once sentencing is complete. A date for sentencing has not been set, according to the court.

Mr. Wood’s statement read:

“We are gratified that, together, the jury and the Court have now correctly acquitted Kathy McGuiness of three of the five charges that the State brought against her.

“The structuring charge has always been nonsense. We are thankful that the Court has finally put an end to the State’s baseless attempt to find a crime where none was committed.

“We are disappointed by the Court’s decision not to acquit Ms. McGuiness of the two charges that relate to the hiring of her daughter as a casual-seasonal employee.

“The State was required to prove at trial that Ms. McGuiness’s daughter received benefits not available to other casual-seasonal employees at the Auditor’s Office. The State failed to do so.

“Ms. McGuiness’s daughter did the same work as the other college interns, was paid the same or less as the other college interns and was not the only college intern who was permitted to work remotely while at school.

“Delaware law does not prohibit the hiring of close relatives. The practice is common throughout State government, and there are at least four current members of the General Assembly whose children work at Legislative Hall.

“Once sentenced, Ms. McGuiness intends to appeal her conviction to the Delaware Supreme Court, where we will point out the legal and factual errors that led to her being wrongly convicted for a crime that she did not commit.”

A spokesman for the Delaware Attorney General’s Office, Mat Marshall, declined comment but indicated that there would be a statement after sentencing.

Each guilty verdict carries a maximum penalty of one year in prison but a presumptive sentence of probation. 

Regarding the decision on leaving the conflict of interest guilty verdict in place, Judge Carpenter ruled in part that,

“In sum, Defendant’s poor judgment allowed a close relative (her daughter Elizabeth ‘Saylar’ McGuiness) to receive a greater financial benefit than others similarly situated and there can be no other reasonable conclusion based on the facts presented during the trial.

“Therefore, the Court will not disturb the jury’s decision.” 

The structuring charge that was overturned revolved around a contract agreement with My Campaign Group.

According to the opinion, the evidence showed “that the Defendant relied on her administrative and accounting staff to handle the transaction, while admitting that the State Procurement Code “is not in [her] wheelhouse.’ ...

“Without the appropriate staff familiar with the accounting process, the situation here was simply a comedy of errors and not criminal conduct.” 

In analyzing the official misconduct, Judge Carpenter reasoned, in part that “There was evidence to suggest that the Defendant clearly wanted to emphasize her position as the State Auditor and it was her name and not the office that would be prominent in all communications that were made public.

“Whether this conduct was reasonably justified in the performance of her official function was one for the jury to decide.

“The Court, however, finds the State has presented sufficient evidence to support this element of the offense and the jury had a reasonable basis to render a guilty verdict on this count.” 

Lydia York, Ms. McGuiness’ opponent in the Democratic primary Sept. 13, also released a statement early Wednesday, which read:

“The decision to convict (Ms. McGuiness) for crimes committed in the course of her duties as the Auditor of Accounts show plainly that she cannot continue serving as an elected official.

“The people of Delaware deserve leaders who can be trusted to always do the right thing and to follow the letter of the law. The current Auditor has done the opposite.

“I have faith in the people of Delaware. I trusted a jury of Delawareans when they found the Auditor guilty of crimes. I trust that the electorate of the Democratic Party will see fit to remove her from office if she does not go of her own accord.

“I am a lifelong Democrat and I believe that we should clean up our own house. I believe that Delaware Democrats will do just that on September 13th.”