Jury Deadlocks On Key Charges Against State Auditor

(AP) — The first Washington state official indicted in 35 years won at least partial vindication on Tuesday, as jurors in his federal fraud trial failed to reach a verdict on the key charges against him — and cleared him of lying to the IRS on the one count where they could agree. 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, before he was elected auditor in 2012. The jury failed to reach a decision on 14 counts, including whether Kelley possessed stolen money, laundered money, lied under oath in civil litigation or filed false income tax returns. "Unfortunately, the people of Washington state do not yet have much-needed closure to Troy Kelley's ongoing legal battles," the governor said in a written statement. Prosecutors said that to obtain business from the title companies — and get access to vast sums of money from homeowners — Kelley promised that Post Closing Department would collect $100 to $150 for each transaction it tracked; keep $15 or $20 for itself; use some of the money to pay county recording and other fees if necessary; and refund the customer any remaining money. Calfo sought to dismantle the government's case point-by-point in his closing argument, saying that because of Kelley's high political profile, investigators set out from the beginning to win a conviction — not to find the truth — and as a result ignored evidence of his client's innocence.

Topics:  ap    the   irs   troy kelley   post closing department   calfo   the   washington   prosecutors   kelley    kelley   jury   state   auditor   key charges   money   failed   fees   business   reach   homeowners   
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