Washington state auditor now faces federal and state investigations

OLYMPIA – In response to Gov. Jay Inslee’s request for action, Washington State Attorney General Bob Ferguson last week initiated a second investigation into the actions of Troy Kelley.

Currently on unpaid leave from his post as state auditor due to an ongoing federal investigation, Kelley is facing the extra scrutiny due to what Inslee feels are “…possible criminal activities related to Jason Jerue’s (or JeRue) hiring and employment by the Washington State Auditor’s office.”

In the letter, Inslee also requested the state attorney general’s office initiate and conduct any prosecution arising from this second investigation.

Jan Jutte, acting state auditor since Kelley’s departure, dismissed JeRue from employment in the auditor’s office when she took office.

“We welcome the attorney general’s investigation into the hiring of former state auditor’s office employee Jason JeRue,” Jutte posted on her agency’s Facebook page. “I believe that the cloud over Troy Kelley is a personal cloud; it’s not a cloud that belongs over this office. I am confident that this investigation will bear that out.”

Kelley was indicted in April by a federal grand jury on charges stemming from business activities before he became auditor.

The charges primarily deal with the nearly $1.5 million his company, Post Closing Department, allegedly stole in reconveyance fees from home owners.

The charges also include filing a false income tax report and efforts to obstruct a civil lawsuit filed against him in 2009 for allegedly withholding refunds due homeowners after they paid off their home loans.

Kelley has maintained publicly he is innocent of all charges.


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