SEATTLE -- Washington State Auditor Troy Kelley has been indicted by a federal grand jury on charges of filing false tax returns, obstruction of justice and possession of stolen property.
The grand jury returned the indictment Wednesday, and it was unsealed Thursday. Kelley is scheduled to appear at U.S. District Court in Tacoma at 2:30 p.m. Thursday.
According to the indictment, between 2003 and 2008 Kelley operated a business that was paid by real estate title companies. Kelley allegedly had agreements with those companies for fees he could change in connection with document-tracking work. Kelley allegedly kept money from transactions with the companies, resulting in more than $2 million in stolen money.
Furthermore, the indictment alleges the state auditor failed to pay federal taxes and obstructed IRS in its efforts to collect taxes from him.
Speculation has been swirling around Kelley, a Democrat elected in 2012, since federal agents searched his home last month. Kelley has insisted he did nothing wrong. He released the following statement after the indictment, and announced he will hold a news conference at 4 p.m. Thursday.
Kelley announced he will take a temporary leave of absence from his office starting May 1.
Gov. Jay Inslee said Thursday that the auditor should resign immediately.
“This indictment today makes it clear to me that Troy Kelley cannot continue as state auditor. He should resign immediately," Inslee said. "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.”
This story is breaking and will be updated as more information becomes available.