It's never a happy occasion when a state officeholder pleads guilty to a crime.  State Treasurer David Petersen's plea this week serves the best interests of justice and of the State.  It also brings closure to a nine-month period of turmoil in the Treasurer's Office.

Petersen pleaded guilty to knowingly filing a false or incomplete financial disclosure statement.  As part of a plea agreement with my Office, he also agreed to resign on or before his December 1 sentencing.

After Treasurer's Office employees raised a number of questions about Petersen's conduct, an investigation was opened last February.  The most serious allegations related to possible crimes of theft, fraudulent schemes and conflict of interest. 

Our investigation, however, found no evidence that he had stolen, fraudulently obtained, misused or wrongfully controlled any public funds in the custody of his office or invested by his office.

What the investigation did find was evidence that he had broken the law by failing to disclose income of about $4,200 on his financial disclosure statements.  He received that money for selling character training materials to schools.

The investigation also turned up a number of significant issues relating to Petersen's performance of his duties and management of his office.  Those issues proved to be outside the scope of the criminal investigation.

Once Petersen resigns, Governor Napolitano will appoint a replacement who will run the Treasurer's Office until the new Treasurer elected on November 7 takes charge.  The Treasurer’s Office will be able to get on with its important work without further distraction.

Terry Goddard