TACOMA, Wash. (AP) – The first Washington state official indicted in 35 years escaped conviction at his five-week federal fraud trial, but that doesn’t mean others in state government are any happier that he remains in office.
“Unfortunately, the people of Washington state do not yet have much-needed closure to Troy Kelley’s ongoing legal battles,” Gov. Jay Inslee said in a statement after jurors announced Tuesday they could not reach a decision on the key charges against Kelley. “Regardless of the outcome in court today, serious questions remain about Troy Kelley’s ability to successfully fulfill his role as state auditor.”
Kelley, a Democrat elected in 2012, is the state official charged with rooting out waste and fraud in government operations. He took a seven-month leave before returning to work in December, but has otherwise spent the past year rebuffing calls for his resignation.
He vowed to clear his name, and his lawyers said the trial’s result was a big step in that direction.
Prosecutors accused Kelley of pocketing $3 million in fees that they said he should have refunded to homeowners when he ran a real-estate services business during the height of last decade’s real-estate boom.