State attorney general to open new investigation on indicted Washington auditor

SEATTLE (AP) — Washington's attorney general says he is opening a criminal investigation into state Auditor Troy Kelley, separate from the federal charges he already faces.

The investigation by Attorney General Bob Ferguson is expected to focus on the relationship between Kelley and a former part-time worker at the auditor's office, Jason JeRue, who has longstanding ties to Kelley.

Kelley, who is on unpaid leave, was indicted in April on charges that he ducked taxes and kept more than $1 million in money that he should have refunded to clients of his former real-estate-services business. JeRue worked for Kelley at that business, and after Kelley was elected auditor in 2012, he hired JeRue to work part-time from home in California.

JeRue took a leave of absence after news of the federal investigation broke. He has since been dismissed from the agency.