|January 16, 2013-present|
|Years in position||2|
|Predecessor||Brian Sonntag (D)|
|Elections and appointments|
|Last election||November 6, 2012|
|First elected||November 6, 2012|
|Next general||November 8, 2016|
|Washington House of Representatives District 28a|
|Bachelor's||University of California, Berkeley|
|Master's||State University of New York - Buffalo School of Management|
|J.D.||State University of New York - Buffalo School of Law|
|Service/branch||U.S. National Guard|
- 1 Biography
- 2 Political career
- 3 Elections
- 4 Campaign donors
- 5 Scorecards
- 6 Personal
- 7 Recent news
- 8 See also
- 9 External links
- 10 References
Kelley is the subject of a federal grand jury investigation related to his work with a company called Post Closing Department. He was indicted on 10 charges and announced a leave of absence effective May 1, 2015. Learn more about the case and indictment by clicking here.
Kelley currently serves as a lieutenant colonel in the Washington National Guard. He led regulatory audit teams for the Securities and Exchange Commission and worked for the U.S. Department of Justice as a federal prosecutor. He was previously a professor and associate editor for the Military Law Review at the Judge Advocate Generals School.
Kelley holds a J.D. from the State University of New York-Buffalo School of Law. He also holds an MBA from the State University of New York-Buffalo School of Management and a B.A. in political science from the University of California, Berkeley.
Washington State Auditor (2013-present)
Kelley was sworn in as state auditor on January 16, 2013. He succeeded fellow Democrat Brian Sonntag.
Federal investigation and recall effort
- See also: State Auditor recall, Washington (2015)
Former state legislator Will Knedlik filed paperwork with the secretary of state's office on April 3, 2015, to remove Kelley from office. This recall effort stems in part from a federal investigation of Kelley's past business dealings.
Kelley and department employee Jason JeRue became entangled in a federal grand jury investigation into past business dealings in March 2015. A subpoena issued by the jury on March 5 sought emails between Kelley and JeRue related to Post Closing Department, an escrow firm previously owned by Kelley accused of withholding $1.2 million in refunds from a former client. Kelley denied any connection to the firm's actions and agreed to a settlement to resolve the case in 2011. Federal treasury agents searched Kelley's home as part of the investigation on March 16. Gov. Jay Inslee (D) called on Kelley to recuse himself from official duties dealing with the case but did not ask for his resignation. State Sen. Mark Miloscia (R) asked for greater transparency, saying, "The people and voters of this state deserve an explanation so we can understand the reason for these events and be able to make our own decisions about what it means or choose to investigate further. This must happen very quickly if we’re going to keep public trust in our government."
Kelley's office handed over 53 emails from his office email account sent between January 1 and March 19, though none of these emails involved JeRue. State Rep. Dan Kristiansen (R) expressed skepticism that Kelley and JeRue had not maintained contact given their longstanding friendship, saying, "You'd think there would be communiques they exchange in the course of operations, the way we all live now." Kelley and JeRue met in the late 1990s and the auditor hired JeRue as a part-time technical writer following his election in 2012.
Grand jury indictment
- See the full text of the indictment here
On April 16, 2015, the federal grand jury indicted Kelley on 10 charges including possession of stolen property, four counts of false declaration and attempted obstruction of civil lawsuit related to his tenure as owner of Post Closing Department. The indictment also concluded that Kelley hid $2,581,653 in funds from the Internal Revenue Service. Kelley pleaded not guilty to the charges but announced in a statement that he would take a leave of absence on May 1 to mount his legal defense. Gov. Inslee made the following statement after announcement of the indictment:
This indictment today makes it clear to me that Troy Kelley cannot continue as state auditor. He should resign immediately. An appointee can restore confidence in the office and assure the public that the Office of the State Auditor will operate at the high standards required of the post. 
—The Seattle Times, (2015) 
Kelley will appear before U.S. District Court Judge Ronald Leighton on May 8. If Kelley resigns, Inslee would appoint a replacement though the length of an appointee's term would depend on the timing of the resignation. The first day to file declarations of candidacy for Washington's 2015 elections is May 11. A resignation prior to May 11 would lead to a special election in November 2015 for the remainder of Kelley's term ending January 2017. If a resignation takes place after May 11, Inslee's appointee would serve until the next general election in November 2016. Kelley would be forced by state law to resign office if he is convicted of a felony.
State House (2007-2013)
In the 2011-2012 legislative session, Kelley served on the following committees:
- Administrative Rules Review
- Business and Financial Services Committee, Washington House of Representatives, Vice Chair
- Health Care and Wellness Committee, Washington House of Representatives
- Legislative Audit and Review, Chair
- Rules Committee, Washington House of Representatives
- Technology, Energy and Communications Committee, Washington House of Representatives
In the 2009-2010 legislative session, Kelley served on the following committees:
- Audit Review and Oversight Committee, Washington State House
- Financial Institutions and Insurance Committee, Washington State House, Vice Chair
- Health Care and Wellness Committee, Washington State House
- Judiciary Committee, Washington State House
- Rules Committee, Washington State House
- Joint Legislative Audit and Review Committee, Washington State Legislature, Joint, Chair
Kelley won election as Washington State Auditor in 2012. He faced fellow state representative Mark Miloscia (D), State Senator Craig Pridemore (D) and James Watkins (R) in the blanket primary on August 7. Kelly and Watkins moved on to the general election. Kelley defeated Watkins in the general election on November 6, 2012.
|Washington State Auditor General Election, 2012|
|Election Results via Washington Secretary of State.|
|Washington Auditor, Primary, 2012|
|Election Results via Washington Secretary of State (dead link)'|
Troy Kelley was endorsed by:
- The Seattle Times
- The Stranger
- Washington State Council of Firefighters
- Public School Employees of Washington
- Washington Education Association
- Fraternal Order of Police
- American Federation of Teachers
- SEIU 775
- SEIU 1199
- SEIU 925
- Equal Rights Washington
- Teamsters' Joint Council #23
- Fuse Washington
During his 2012 campaign for state auditor, Kelley's opponent James Watkins published court documents from lawsuits Kelley was involved in. The records were posted on a website which was set up by the Watkins campaign to discredit Kelley. In 2010, Watkins employed the same strategy during his unsuccessful congressional campaign against 2012 gubernatorial candidate Jay Inslee, the website then titled factcheckjayinslee.com. Watkins' argument that Kelley was ethically unfit for the state auditor job, as exhibited on the website and in a September 27th endorsement interview with The Seattle Times (the Times endorsed Kelley for the general election) was a lawsuit from 2010 wherein one of Kelley's former clients, a title insurance group called Old Republic Title which hired Kelley’s firm "to handle some of the back-end mechanics of closing a real estate transaction," accused Kelley of misappropriating roughly $1.2 million in customer fees. The Times called Watkins tactics "mean-spirited" and endorsed Kelley because of concerns on how Watkins would run an office handling sensitive information about public agencies. The lawsuit was filed for a "breach of contract." No criminal charges were ever filed. During the deposition, attorney for the plaintiffs Scott Smith brought up a series of wire transfers to that Kelley had authorized in 2008. Financial records obtained by subpoena revealed that Kelley held an offshore account in Belize, to which Kelley had linked an account. This account was closed after existing for about a year, and only maintained the minimum balance (less than $5,000). Kelley stated that California tax attorney Alan Eber, whom he hired for estate planning services, was responsible for the account in Belize. Kelley said that when he discovered the existence of the offshore account, he closed it, although his signature appears on international wire paperwork establishing the link to the Belize account. Kelley defended that the Old Republic case, which was settled for an undisclosed amount, as a routine, "nuisance lawsuits," an occupational hazard of handling property funds compounded by the mortgage crisis. “All of my accounting and estate planning decisions ... have been fully compliant with the law. Any assertion or implication to the contrary is simply incorrect.”
Troy Kelley was re-elected to the Washington House of Representatives District 28a. He was unopposed in the August 17, 2010 primary. He defeated Republican Steve O'Ban in the November 2, 2010 general election.
|Washington House of Representatives, District 28a General Election (2010)|
|Troy Kelley (D)||21,347|
|Steve O'Ban (R)||19,026|
|Washington House of Representatives, District 28a Primary (2010)|
|Troy Kelley (D)||12,056||50.26%|
|Steve O'Ban (R)||11,932||49.74%|
On November 4, 2008, Democrat Troy Kelley won re-election to the Washington House of Representatives, District 28 receiving 60.2 percent of the vote (28,591 votes), defeating Republican Dave Dooley who received 39.8 percent of the vote (18,906 votes).
|Washington House of Representatives, District 28(2008)|
|Troy Kelley (D)||28,591||60.20%|
|Dave Dooley (R)||18,906||39.80%|
Comprehensive donor information for Kelley is available dating back to 2006. Based on available campaign finance records, Kelley raised a total of $747,553 during that time period. This information was last updated on May 7, 2013.
Kelley won election to the position of Washington State Auditor in 2012. During that election cycle, Kelley raised a total of $711,666.
|Washington State Auditor 2012 election - Campaign Contributions|
|Top contributors to Troy Kelley's campaign in 2012|
|Troy X. Kelley||$502,788|
|Washington State Democratic Party||$31,541|
|Troy Kelley surplus funds||$4,000|
|Farmers Insurance Group||$3,600|
|Credit Union Legislative Action Fund||$2,600|
|Total Raised in 2012||$711,666|
|Total Votes received in 2012||1,512,620|
|Cost of each vote received||$0.47|
|Source:Follow the Money|
In 2010, a year in which Kelley was up for re-election, he collected $280,633 in donations.
His largest contributors in 2010 were:
|Washington House of Representatives 2010 election - Campaign Contributions|
|Top contributors to Troy Kelley's campaign in 2010|
|Washington State Democratic Party||$40,284|
|House Democratic Campaign Committee||$12,481|
|28Th Legislative District Democratic Victory Fund||$2,000|
|Washington Chiropractic Trust||$1,600|
|Total Raised in 2010||$280,633|
Listed below are the five largest contributors to Troy Kelley's 2008 campaign.
|Washington State Democratic Party||$21,342|
|Troy X. Kelley||$17,200|
|House Democratic Campaign CMTE of Washington||$9,113|
|28th Legislative District Democratic Victory Fund||$3,000|
|Washington State Council of Police & Sheriffs||$2,400|
The Freedom Foundation, a Washington State-based research and educational organization committed to the principles of individual liberty, free enterprise, and limited, accountable government, issued its 2012 Informed Voter Guide for Washington State voters, including a legislative score card documenting how Washington State legislators voted upon bills the Foundation deemed important legislation. The legislation chosen by the Foundation covered budget, taxation, and pension issues. The guide also included a compilation and ranking of all tax and fee increases proposed by each Senate and House members' proposed legislation, as required by Washington law.
The Foundation's research guide provided a collection of nonpartisan information involving the voting records of state legislators on key issues related to the budget, taxation, and pension reform. Such legislation included:
- Bill 6636 (Balanced budgets): The bill would have required a balanced budget plan to be achieved within four years. The House bill, which became law, required a balanced budget as long as the spending was not 4.5% larger than the previous year's budget, regardless of revenue intake.
- Bill 5967 (Senate Republican and House Democrats budgets): The Senate version of the bill would have reduced spending and keep a $501 million reserve, but with a skipped $143 million payment to the state's pension fund. A House version of the bill would have postponed a payment to public schools and leave less for the state's reserves. The bill did not become law, although a compromise bill eventually did.
- Bill 6582 (Local Transportation Tax Increases): This bill doubles the "car tab" fee that most cities can impose on vehicle owners, from $20 to $40. It also allows counties to impose a motor vehicle excise tax (this requires a vote of the people), changes the limit on local gas taxes in a way that slightly reduces the top rate, and allows Seattle to impose an additional gas tax (this would also require a public vote). The bill became law.
- Bill 6378 (Pension reforms): The bill, introduced by Sen. Joseph Zarelli would have closed older, more expensive state pension plans for new hires and have new state employees join a newer pension plan. Also included in the bill is a mandatory reduction in pension payouts to those employees who take early retirement, based on the cost to the pension fund. The Senate voted upon the bill, along with a House vote on an amended version of the bill that did not include as much cost saving but eventually became law.
A sign indicates a bill more in line with the Foundation's stated goals, and a sign indicates a bill out of step with the Foundation's values. Here's how Kelley voted on the specific pieces of legislation:
|2012 House Scorecard - Troy Kelley|
|Bill #6636 (Balanced budget requirement)||Bill #5967 (House Democrats budget)||Bill #6582 (Local transportation tax increases)||Bill #6378 (Pension reforms)|
Kelley and his wife, Diane, have two children.
This section displays the most recent stories in a Google news search for the terms "Troy Kelley Washington State Auditor."
- Some of the stories below may not be relevant to this page due to the nature of Google's news search engine.
- Washington State Auditor
- Washington state executive official elections, 2012
- Washington House of Representatives
- Brian Sonntag
- Troy Kelley's personal website
- Washington House of Representatives - Rep. Kelley
- Legislative Profile from Project Vote Smart
- Biography from Project Vote Smart
- Campaign Contributions: 2012, 2010, 2008, 2006
- Troy Kelley on Facebook
- Troy Kelley on Twitter
- Project Vote Smart - Rep. Kelley
- Washington State Auditor's Office: "About Troy Kelley," accessed November 11, 2013
- Peninsula Daily Times, "Former legislator files recall papers on Washington state auditor," April 4, 2015
- Q13 Fox, "Federal subpoena of State Auditor Troy Kelley’s office seeks records of employee," March 20, 2015
- Greenfield Reporter, "State: No emails between Auditor Troy Kelley and employee who is longtime associate," April 2, 2015
- The Seattle Times, "Auditor Troy Kelley indicted by feds, pleads not guilty," April 16, 2015
- Note: This text is quoted verbatim from the original source. Any inconsistencies are attributed to the original source.
- Washington State Legislature, "RCW 42.12.040 Vacancy in partisan elective office — Successor elected — When," accessed April 16, 2015
- Lakewood Patch, "Troy Kelley to Run For State Auditor," April 12, 2012
- Washington Secretary of State, "2012 primary candidates," accessed May 18, 2012
- Washington Secretary of State, "August 07, 2012 Primary Results," accessed August 9, 2012
- "Seattle Times Editorial," "Seattle Times Endorses Troy Kelley for Auditor," October 14, 2012
- "The Stranger's Endorsements," October 16, 2012
- "Progressive Voter's Guide," accessed October 26, 2012
- "Troy Kelley's Homepage," accessed 10/26/2012 (timed out)
- The Seattle Times, "Watkins, Kelley trade personal attacks in animated endorsement interview," September 27, 2012
- The Seattle Times, In blistering campaign for auditor, Troy Kelley has the edge, October 14, 2012
- Fact check Troy Kelley, "DECLARATION OF SCOTT A. SMITH RE: KELLEY'S SUMMARY JUDGMENT MOTION AND OLD REPUBLIC'S CROSS-MOTION FOR SUMMARY JUDGMENT," Filed March 28, 2011
- KPLU.org NPR news, "Wash. state auditor candidate wired millions, linked account to Belize," accessed October 10, 2012
- Old Republic National Title Insurance Company: "About Us," accessed November 11, 2013
- Washington Legislature Official primary results SOS
- Washington State Election Results
- Follow the Money, " Career fundraising for Troy Kelley," accessed May 7, 2013
- Follow the Money, "2010 campaign contributions," accessed December 19, 2014
- Freedom Foundation, "Legislative Voting Record," accessed October 10, 2013
- Freedom Foundation, "Big Spender List," accessed October 10, 2013
Brian Sonntag (D)
| Succeeded by|
|Washington House of Representatives District 28
| Succeeded by|
Steve O'Ban (R)