Troy Kelley

Washington state auditor Troy Kelley arrives at the federal courthouse in Tacoma, Wash., for a hearing Monday, May 11, 2015.
Credit AP Photo/Ted S. Warren

Troy Kelley is Washington state's auditor. In April, he was indicted by a grand jury on charges related to his work in the real estate services industry. He has pleaded not guilty and refused to step down. 

Reporter Austin Jenkins has unearthed a story that is stranger than fiction. Read his full investigative piece about Troy Kelley on Medium. 

Washington State Auditor Troy Kelley hugged and kissed his wife and shook his lawyers' hands as he was found not guilty Tuesday on a charge of making a false statement to the IRS. A federal jury in Tacoma deadlocked on the remaining 14 counts, including charges of possession of stolen property, money laundering and filing false tax returns.

The dramatic turn of events followed nearly four days of deliberations and comes almost exactly a year after Kelley was indicted by a federal grand jury. Prosecutors did not immediately indicate if they intend to re-try Kelley on any of the charges.

The jury in the federal criminal trial of Washington State Auditor Troy Kelley appears to be struggling to find agreement on at least one of the 15 counts. The jurors sent a question to the judge Monday asking what to do if they deadlock on a charge.

Washington state auditor Troy Kelley arrives at the federal courthouse in Tacoma, Wash., for a hearing Monday, May 11, 2015.
AP Photo/Ted S. Warren

Bill Radke talks with Olympia correspondent Austin Jenkins about the federal trial of State Auditor Troy Kelley. He's charged with 15 counts, including fraud, tax evasion and money laundering.

After a nearly six week trial, the guilt or acquittal of Washington State Auditor Troy Kelley rests with a jury of seven men and five women. The case went to the jury late Wednesday afternoon following lengthy closing arguments by the prosecution and defense.

After nearly six weeks, the jury in the trial of Washington State Auditor Troy Kelley will hear closing arguments Wednesday and then retire to decide the case.

On Tuesday, U.S. District Judge Ronald Leighton dismissed one of the false declaration charges against Kelley on the grounds that prosecutors had failed to introduce sufficient evidence to lead a reasonable jury to convict on that particular charge.

However, the judge denied a defense motion for a judgment of acquittal on all of the charges and declared the case will go to the jury.

Washington State Auditor Troy Kelley is not expected to testify in his real estate services and fraud trial.

Instead, the first-term Democrat is counting on his defense team to convince a jury to acquit him of an array of charges that include possession of stolen funds, money laundering and filing false tax returns.

Closing arguments are expected Tuesday in the trial of Washington State Auditor Troy Kelley. The defense plans to call its last witness Monday.

After five weeks, the end of Washington State Auditor Troy Kelley's trial is in sight. Defense attorney Angelo Calfo has spiced up the at times eye-glazing real estate services and tax fraud trial with surprises.

After opening statements, Calfo moved for a mistrial. After the prosecution rested, he moved for most of the charges to be dismissed. The judge rejected both ploys.

Then on Thursday, Calfo did something that can fairly be called unusual for a criminal proceeding: he called as a defense witness the lead FBI agent on the case.

When home buyers and sellers sign a HUD-1 settlement statement at the closing of a real estate deal, they sign away their rights to the money they agree to pay in closing fees.

That was the testimony Wednesday of the first defense witness to be called in the real estate services and tax fraud case against Washington State Auditor Troy Kelley.

The prosecution has rested its case in the trial of Washington State Auditor Troy Kelley and the defense called its first witness Wednesday morning. But before that came a dramatic courtroom moment.

Egyptian cotton sheets, meals with his campaign manager and a trip to Paris for his wife, a French professor. These are among the “disallowed’ tax deductions Washington State Auditor Troy Kelley claimed on his business tax filings during the years 2011 and 2012.

Tax issues have taken center stage in the trial of Washington State Auditor Troy Kelley Tuesday, as an IRS agent and Kelley’s defense attorney sparred over whether Kelley broke tax laws.

This story has been updated.

The outcome of the real estate services fraud case against Washington State Auditor Troy Kelley could hinge on the testimony of Jason JeRue who served as operations manager for Kelley’s former company, the Post Closing Department.

Washington State Auditor Troy Kelley’s trial enters its fourth week Monday. As prosecutors continue to mount their case, a behind-the-scenes fight has emerged over Kelley’s payment of taxes to the state of Washington and whether that’s relevant to this federal case.

In the spring of 2008, when future Washington State Auditor Troy Kelley was in the process of closing down his real estate services business, he instructed his operations manager to falsify client spreadsheets and “get rid” of records. That was the testimony Thursday from Jason JeRue, a highly anticipated witness in Kelley’s money laundering and tax evasion trial.

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