Troy Kelley Investigation Widens With New State Probe

State Auditor Troy Kelley is facing another investigation. This time the state is looking into possible criminal activities.

The state’s investigation is separate from the federal charges he currently faces.

Washington Attorney General Bob Ferguson said Tuesday that he’s opening the new investigation at Gov. Jay Inslee’s request. Ferguson offered few details, but he did make clear that there has been no accusation and no one has been charged with a crime.

He told reporters the investigation will focus on Jason Jerue, a former business associate and former employee of Kelley.

“We’ve been asked to do an investigation," says Ferguson. "I’m not going to speculate on what laws might have been impacted or not.”

Jerue remains a mystery. He had worked with Kelley in California back in the '90s. Both had sued their former employer for wrongful termination but later dropped the claims.

Jerue worked for Kelley when he started a real estate business in Washington state. In 2013 after he was elected auditor, Kelley hired Jerue. Jerue was a part-time employee and was working from his home in California.

Kelley has been on unpaid leave since May. He was indicted on 10 federal counts, including charges that he evaded taxes and failed to refund clients from his former real estate business. He pleaded not guilty.

Jerue also took leave from the State Auditor’s Office, but he has since been fired.

Jerue did not respond to a request for comment.