PHILADELPHIA (KYW Newsradio) — Delaware’s state auditor has been indicted with witness intimidation and theft charges, accused of hiring her daughter and watching employees' email accounts in a series of alleged "official misconduct."
The Delaware Attorney General's Office said Kathleen McGuiness hired her daughter for seasonal work after letting go of more tenured employees, and paid her $19,000 while also allowing her to use a state car.
They said the paychecks were deposited into an account with McGuiness’ name on it.
Officials said McGuiness also hired her daughter’s friend, paying her nearly $8,000.
The Attorney General's office also said McGuiness hired a political campaign consultant company, one she had used before being elected, for official "communication services."
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The company was paid $49,900, just $100 shy of having to be put up for public bidding. Authorities said she tried to cover it up by paying in $5,000 increments.
McGuiness is also accused of surveilling the email accounts of employees who questioned her behavior or filed whistleblower complaints.
Her lawyer, Steven Wood, called the witness intimidation charge “pure fiction” and “fanciful tales spun by former employees with an ax to grind." He claimed she is “absolutely innocent of all charges."
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In a statement (which you can read below), he also added that there is “nothing unlawful about hiring a former campaign consultant to perform legitimate tasks related to government service," and said overall that the allegations are “full of misleading statements and half-truths.”
McGuiness was elected in 2018, began serving in January 2019 and remains in office.
In total, McGuiness faces five criminal charges. She is expected to turn herself in this week.
Read the full statement below from McGuiness' attorney, Steven Wood.
Kathy McGuiness is absolutely innocent of these charges. The Grand Jury’s Indictment, like all Grand Jury Indictments, was based upon a one-sided presentation from witnesses and documents selected by the Attorney General. The Indictment is full of misleading statements and half-truths.
It is true that Ms. McGuiness’s daughter worked as a temporary employee in the Auditor’s Office. Delaware law does not prohibit family members from hiring family members, and there have been many instances of such employment all throughout state government—including in the Attorney General’s Office. It is also true that, like millions of Americans, Ms. McGuiness’s daughter worked remotely during the COVID pandemic. However, the Indictment’s assumption that the only way for a state worker to work remotely is by using the State’s email network is false.
Ms. McGuiness has, from time to time, hired outside contractors to perform various professional, policy-related and communications functions for the Auditor’s Office. Unlike the Attorney General Office, which has several full-time employees that assist with press and public relations, the Auditor’s Office does not have a full-time employee to perform those functions. Furthermore, unlike many other state agencies, the Auditor’s budget did not provide for a full time policy development staffer until recently. For these reasons, Ms. McGuiness hired an outside contractor to assist in those tasks. The contractor in question has performed policy development services for other elected officials in Delaware before, including a former Governor. All of the relevant contracts were entirely lawful.
There is nothing unlawful about hiring a former campaign consultant to perform legitimate tasks related to government service. The Indictment fails to mention that the consultant has provided policy advice for elected officials all around the United States in the past and continues to do so today.
The Witness Intimidation charge is pure fiction, and is clearly the result of fanciful tales spun by former employees with an axe to grind.
Ms. McGuiness will continue to work hard on behalf of Delaware’s taxpayers and intends to focus on the job that she was elected to do. She will have no further comment on this matter. When the whole story is finally heard, the facts will speak for themselves.
