Guest post by Michael Strickland
Troy X. Kelley, Washington state Auditor, has been indicted on 10 counts of tax fraud, and is being prosecuted by the United States Department Of Justice.
From a press release put out by the DOJ:
Advertisement - story continues below
A U.S. Grand Jury in Seattle has returned a ten count indictment against TROY X. KELLEY, 50, of Tacoma for his scheme to keep stolen money and hide it from both the IRS and those due a refund related to their purchase of a home or refinance of a home mortgage, announced Acting U.S. Attorney Annette L. Hayes. KELLEY currently serves as the elected Washington State Auditor. The majority of the criminal conduct detailed in the indictment spans years prior to KELLEY’s election to statewide office. However, some of the criminal conduct detailed in the indictment occurred following his election.
According to the indictment, between 2003 and 2008, KELLEY operated a business that was paid by real estate title companies to track documents related to real estate sales and refinancings. KELLEY had agreements with those companies for the fees he could charge in connection with the document-tracking work. While the title companies withheld $100-$150 on each loan to pay the fee, the bulk of the money was to be returned to the borrower with KELLEY’s company being paid $15- $20 per transaction. However, the indictment alleges, in most cases, KELLEY kept the entire amount withheld on each loan resulting in more than $2 million in stolen money. This conduct is the basis for count one of the indictment: Possession and concealment of stolen property. When the amount withheld by title companies became the subject of civil litigation, the indictment alleges KELLEY obstructed the litigation, repeatedly lying in a declaration and in depositions while under oath. For this conduct KELLEY is charged with four counts of false declarations and one count of attempted obstruction of a civil lawsuit. Further, the indictment alleges KELLEY failed to pay federal taxes and obstructed the IRS in its efforts to collect taxes from him. He is charged with corrupt interference with Internal Revenue laws and two counts of filing false income tax returns. Finally, KELLEY is charged with making false statements to Internal Revenue Service agents who questioned him about his scheme in April 2013.
Kelley is a member of the Democrat party, and was elected as state Auditor in 2012. Prior to that, he served as a state representative for 6 years. In addition to be the Auditor for the state, he also holds the rank of Lt. Colonel JAG officer with the state National Guard.