Posted on 03/20/2015 7:35:04 PM PDT by TheConservator
A grand jury subpoena released late Friday by the state Auditor’s Office shows that the U.S. Department of Justice sought documents about a part-time technical writer who used to work with state Auditor Troy Kelley in a business that tracked loan and real estate documents.
The federal subpoena requested email conversations between Jason Jerue and other auditor’s office employees relating to Jerue’s past employment at Post Closing Department, Kelley’s company that became embroiled in a lawsuit with a former client, Old Republic Title.
The subpoena, which was served on the Auditor’s Office March 6, also requested emails between Jerue and others in the Auditor’s Office discussing that lawsuit or “the commission of any criminal offense.”
Jerue currently works at the Auditor’s Office as a part-time technical writer, agency spokesman Thomas Shapley said. Previously, he was vice president and operations manager at Post Closing Department, Kelley’s company, according a 2011 court filing.
The Auditor’s Office turned over the requested documents to the Department of Justice Thursday, three days after U.S. Treasury Department agents searched Kelley’s home in Tacoma.
The Department of Justice subpoena also sought recent work completed by Jerue at the Auditor’s Office, his personnel file, and emails between Jerue and his bosses regarding the terms and conditions of his employment at the agency.
Kelley remains on vacation out of state with his family, and isn’t expected back in the office until Monday, Shapley said Friday. Shapley said he believes Kelley remains in California.
Kelley did not return a call from The News Tribune Friday.
A spokeswoman for the U.S. Attorney’s office in Seattle said Friday she could neither confirm or deny an investigation concerning Kelley, and that no case against him had been filed.
Kelley, 50, is a Democrat and lieutenant colonel in the National Guard who was elected to the auditor’s office in 2012. His current annual salary is $116,950. Before that, he served three terms in the state House.
Earlier Friday, Gov. Jay Inslee’s office asked State Auditor Troy Kelley to “be open with the public” about the investigation that has led federal agents to search Kelley’s home and the Department of Justice to subpoena records from Kelley’s office.
In a statement Friday, Inslee spokesman David Postman said, “The governor is very concerned about the apparent federal investigation involving the state auditor.”
“We hope that the auditor will work with authorities and to the greatest extent possible – and as soon as possible – be open with the public,” Postman said.
“The auditor should recuse himself from any official action involving this investigation,” Postman added.
Shapley said Friday that Kelley already has removed himself from any activity involving the investigation. Kelley was not involved in supplying documents in response to the federal subpoena, nor has he been involved in decisions about releasing a copy of the subpoena to the media, Shapley said.
“As is our standard practice, the subject of any request for information is removed from any involvement in the preparation and production of that request,” Shapley wrote in an email to The News Tribune.
A growing list of Republicans are also calling on Kelley to act. On Thursday, the chairwoman of the Washington State Republican Party asked Kelley to step down, while the majority leader of the Republican-controlled state Senate said Kelley should consider taking a temporary leave of absence.
Sen. Mark Miloscia, a Federal Way Republican who ran as a Democrat against Kelley for auditor in 2012, weighed in Friday. He urged Kelley to “come clean about the events of the past week and the subpeona.” Miloscia is chairman of the chair of the Senate Accountability and Reform Committee.
Before his election to auditor, Kelley was embroiled in an acrimonious federal lawsuit concerning his business that processed and tracked mortgage title documents. The lawsuit ended in 2011 when he paid an undisclosed settlement to his company’s former client, Old Republic Title.
Old Republic had contended Kelley kept $1.2 million in fees that should have been refunded to Old Republic’s customers. Kelley later told reporters he collected fees properly for work he did. In the suit, Kelley answered questions under oath about why he had moved $3.8 million among multiple bank accounts, and whether he paid taxes on that money.
Kelley said he would pay taxes when told to do so by an attorney advising him. Kelley identified the attorney as Alan Eber, the name of a California lawyer who specialized in helping clients protect their assets by creating international trusts.
Prior to starting his own company, Kelley worked as an executive for First American Title Insurance Co. He sued the company for wrongful termination and defamation after it fired him in 2000. He complained that one company official had told other managers that he was stealing and embezzling from the company.
The company accused him of later breaking into its offices and stealing a painting, an act it said was captured on surveillance footage. Kelley denied the allegation, but shortly after the footage was submitted, he dismissed his lawsuit.
Feds sought records of employee who worked with Auditor Troy Kelley in past business>>>>>>>>>>>>>>>>>>
FAAAAACK! The guy was a democrat. He had his own server.
Feds sought records of employee who worked with Auditor Troy Kelley in past business>>>>>>>>>>>>>>>>>>
FAAAAACK! The guy was a democrat. He had his own server.
“Sen. Mark Miloscia, a Federal Way Republican who ran as a Democrat against Kelley for auditor in 2012, weighed in Friday.”
Huh?
A Demwit.
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