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Delaware auditor dodges felony charges, found guilty of misconduct

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DOVER, Del. - A jury returned a mixed verdict Friday in the corruption trial of Delaware State Auditor Kathy McGuiness, acquitting her of felony charges but finding her guilty of three misdemeanors.McGuiness, a Democrat elected in 2018, is the first statewide elected official in Delaware to be prosecuted while in office.As state auditor, McGuiness is responsible for rooting out government fraud, waste and abuse but was indicted last year on five charges, including felony counts of theft and witness intimidation.PREVIOUS: Delaware state auditor indicted on public corruption chargesAfter deliberating for about four hours over two days, jurors acquitted McGuiness of the theft and intimidation charges.

They found her guilty of the three lesser charges — conflict of interest, official misconduct and structuring a contract to avoid a procurement rule.Prosecutors argued McGuiness abused her position in hiring her daughter, structuring payments under a consulting contract to avoid accounting scrutiny, and intimidating employees who were cooperating with investigators.The defense argued McGuiness was the target of an incompetent and biased investigation spurred by complaints from disgruntled employees as she tried to make changes in her office following her predecessor’s 30-year tenure.The jury verdict followed a two-week trial that featured about two dozen witnesses and hundreds of exhibits including emails, text messages, payroll records and accounting spreadsheets.Prosecutor Mark Denney told jurors that McGuiness "used and abused" her position to hire her daughter and give her special privileges unavailable to other part-time workers.

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