State Auditor Troy Kelley's fate now in hands of federal jury

TACOMA -- A federal jury will begin deliberations Thursday in the case of Washington State Auditor Troy Kelley – the first state official in more than 30 years to go to trial after being indicted by the government.

Kelley faces more than a dozen counts, including money laundering, possession of stolen property, and making false statements. He’s accused of stealing millions of dollars from home buyers during the housing crisis through a business he owned that helped escrow companies handle reconveyance fees.

Federal prosecutors closed their case Wednesday by telling jurors that in order for Kelley to be found innocent, “every other witness in this case has to be wrong.”

Assistance U.S. Attorney Katheryn Frierson focused in on a series of bank transfers she said Kelley made in an effort to hide and then ultimately steal money that didn’t belong to him.

"Someone who has done nothing wrong does not need an elaborate cover-up," she said. "Mr. Kelley ... when he knew he was caught, did the things that only those who know they are guilty do."

Kelley’s defense attorney painted the case as political and told the jury that federal agents felt they were under immense pressure from the U.S. Attorney’s Office to find evidence of Kelley’s guilt and that prosecutors looked at the case “with an eye toward conviction, not an eye toward the truth.”

Kelley declined to take the stand in his own defense during the five-week trial, during which more than 100 witnesses testified, most for the prosecution.

Despite repeated calls from lawmakers on both sides of the aisle, Kelley, a Democrat, has repeatedly refused to step down from his position as state auditor. Kelley also serves a lieutenant colonel in the Washington National Guard.