troy kelley

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.

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 Gov. Jay Inslee Monday signed into law an update to the state's two-year budget. It puts more money into the state's mental health hospitals and pays for costs from last summer's wildfires.

The governor also wielded his veto pen.

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.

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.

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.

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.

Jurors in the trial of Washington State Auditor Troy Kelley heard from Jason Jerue, a witness who is testifying under a grant of immunity from the federal government. He took the stand Wednesday afternoon in federal court in Tacoma.

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