AG launches criminal probe of state auditor

  • By Jerry Cornfield
  • Tuesday, June 9, 2015 1:00pm
  • Local News

UPDATE: David Postman, communications director for Gov. Jay Inslee, released the following statement regarding today’s announcement by Attorney General Bob Ferguson:

The governor has not predetermined that any law has been broken. But he has concerns. Given JeRue’s long history with Troy Kelley’s private business which is now under federal investigation and JeRue’s highly unusual work conditions in state government, the governor and attorney general felt there were questions that needed to be asked. This is the place where Troy Kelley’s business and official functions met – he hired a close business associate for an unusual official state job with very little work product to show for it. The governor would like to know more about JeRue’s role and taxpayers have a right to know whether any laws were broken. As to the timing of today’s announcement, the governor and the attorney general and their staffs have had regular conversations about the federal investigation of Troy Kelley and how that could impact state government. We wanted to let Jan Jutte get her feet on the ground in the office. We are all now in agreement to move forward with this investigation.

Original post:

Attorney General Bob Ferguson announced Tuesday that he’s begun a criminal investigation into embattled state Auditor Troy Kelley’s hiring of a longtime friend and business associate.

Ferguson said the investigation will focus on the employment of Jason JeRue, who worked part-time in the auditor’s office until getting fired in May. Ferguson said this is the first time his office has investigated actions by a state elected official.

Gov. Jay Inslee requested the probe in a letter he sent to Ferguson Monday.

Kelley, meanwhile, is battling federal charges of tax evasion and lying to federal authorities stemming from his conduct of a private business. Ferguson said the investigation by his office is completely separate from the federal activities.

Kelley, a Democrat, began an unpaid leave of absence May 4 to deal with the federal case. On that same day, acting state Auditor Jan Jutte fired JeRue.

Inslee and Ferguson, both Democrats, have repeatedly called on Kelley to resign but the first-term auditor won’t step down. His term runs through the end of 2016.

Now, if Kelley is charged and convicted of a crime, it appears he could be forced out of office.

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