Update: Auditor McGuiness Pleads Not Guilty To All Charges

Update, Tuesday morning:

Delaware State Auditor Kathy McGuiness turned herself in Tuesday morning in Wilmington, one day after being indicted for a total of five offenses, two of which are felonies.

McGuiness pled not guilty to all charges, and arraignment was waived. She was released on $50,000 unsecured bail.
A case review is scheduled for October 18th.

McGuiness is also under an order to have no contact with any former employee of the Office of Auditor of Accounts.
And, she is not to discuss the ongoing criminal investigation with any current employees of the office.

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After being indicted on several charges Monday, Delaware State Auditor Kathy McGuiness said she was innocent of all of the charges, according to a statement provided to WGMD News by an attorney.

The statement from Steven P. Wood came hours after McGuiness was indicted on a total of five charges, including two felonies: Conflict of Interest, in violation of the State Officials’ Code of Conduct; Felony Theft; Non-Compliance With Procurement Law by structuring State payments; Official Misconduct; and Felony Witness Intimidation. 

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“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,” Wood stated.

Wood’s statement in detail follows:

“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.”