WASHINGTON — Washington's attorney general says he is opening a criminal investigation into state Auditor Troy Kelley, separate from the federal charges he already faces.
The investigation by Attorney General Bob Ferguson is expected to focus on the relationship between Kelley and a former part-time worker at the auditor's office, Jason JeRue, who has longstanding ties to Kelley.
>> Watch the news conference live on kirotv.com or the free KIRO 7 apps.
Kelley began an unpaid leave of absence in May, weeks after his indictment on 10 counts alleging that he stole from one-time business clients, avoided taxes and lied during a deposition in a civil case.
According to federal prosecutors, Kelley kept more than $1 million in money that he should have refunded to clients of his former real-estate-services business.
JeRue worked for Kelley at that business, and after Kelley was elected auditor in 2012, he hired JeRue to work part-time from home in California.
JeRue took a leave of absence after news of the federal investigation broke. He has since been dismissed from the agency.
In Kelley's absence, the auditor's office — which is charged with rooting out waste and fraud in state and local governments in Washington — is being headed by agency veteran Jan Jutte.
Two members of the Washington state House in early May introduced a resolution that seeks to start an impeachment process against indicted Auditor Troy Kelley, but House leaders said that such a move now would distract lawmakers from their negotiations on a state operating budget.
The Associated Press Contributed to this report
KIRO
