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.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Local News

A sign notifying people of the new buffer zone around 41st Street in Everett on Wednesday, Jan. 7. (Will Geschke / The Herald)
Everett adds fifth ‘no sit, no lie’ buffer zone at 41st Street

The city implemented the zone in mid-December, soon after the city council extended a law allowing it to create the zones.

Logo for news use featuring the Tulalip Indian Reservation in Snohomish County, Washington. 220118
Teens accused of brutal attack on Tulalip man Monday

The man’s family says they are in disbelief after two teenagers allegedly assaulted the 63-year-old while he was starting work.

A view of the Eastview development looking south along 79th Avenue where mud and water runoff flowed due to rain on Oct. 16, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
Eastview Village critics seek appeal to overturn county’s decision

Petitioners, including two former county employees, are concerned the 144-acre project will cause unexamined consequences for unincorporated Snohomish County.

Snohomish County commuters: Get ready for more I-5 construction

Lanes will be reduced along northbound I-5 in Seattle throughout most of 2026 as WSDOT continues work on needed repairs to an aging bridge.

Logo for news use featuring the municipality of Snohomish in Snohomish County, Washington. 220118
Snohomish man held on bail for email threat against Gov. Ferguson, AG Brown

A district court pro tem judge, Kim McClay, set bail at $200,000 Monday after finding “substantial danger” that the suspect would act violently if released.

Kathy Johnson walks through vegetation growing along a CERCLA road in the Mt. Baker-Snoqualmie National Forest on Thursday, July 10, 2025 in Granite Falls, Washington. (Olivia Vanni / The Herald)
Activism groups to host forest defense meeting in Bothell

The League of Women Voters of Snohomish County and the Pacific Northwest Forest Climate Alliance will discuss efforts to protect public lands in Washington.

Debris shows the highest level the Snohomish River has reached on a flood level marker located along the base of the Todo Mexico building on First Street on Friday, Dec. 12, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
SnoCo offers programs to assist in flood mitigation and recovery

Property owners in Snohomish County living in places affected by… Continue reading

x
Delay on Critical Areas Ordinance update draws criticism from groups

Edmonds is considering delaying updates to a section of the ordinance that would restrict stormwater wells near its drinking water aquifer.

Logo for news use featuring Snohomish County, Washington. 220118
Providence Swedish welcomes first babies of 2026 in Everett, Edmonds

Leinel Enrique Aguirre was the first baby born in the county on Thursday in Everett at 5:17 a.m. He weighed 7.3 pounds and measured 20 inches long.

Marysville house fire on New Year’s Day displaces family of five

Early Thursday morning, fire crews responded to reports of flames engulfing the home. One firefighter sustained minor injuries.

Floodwater from the Snohomish River partially covers a flood water sign along Lincoln Avenue on Thursday, Dec. 11, 2025 in Snohomish, Washington. (Olivia Vanni / The Herald)
Images from the flooding in Snohomish County.

Our photographers have spent this week documenting the flooding in… Continue reading

Lynnwood
Lynnwood man sentenced over placing spy cameras in Expedia bathrooms

This comes after Marcelo Vargas-Fernandez pleaded guilty in December to 14 counts of voyeurism and two counts of violating a sexual assault protection order.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.