Indicted State Auditor Troy Kelley faces new criminal probe

SEATTLE -- More trouble arose Tuesday for embattled State Auditor Troy Kelly.  He now faces a state criminal investigation into his hiring practices since he was elected in 2012.

Kelley is already the subject of a 10-count federal indictment for fraud and tax evasion related to his work prior to being becoming state auditor.

“This inquiry will serve the public interest, especially when there are questions about an agency charged with upholding public integrity,” said Washington Attorney General Bob Ferguson, who launched the probe at the request of Gov. Jay Inslee.

Inslee cited “possible criminal activities” of Kelley in a letter to Ferguson.

The focus of the attorney general's probe will be Kelley’s hiring of Jason Jerue.

Jerue was Kelly’s partner in the business venture that is the subject of the federal indictment.  Kelley hired Jerue as a part-time writer in the Auditor’s Office.  It was an unusual arrangement since Jerue lives in California.

Jerue left his job after Kelley’s federal indictment came down.

The attorney general didn’t disclose what exactly the alleged misconduct involves or what laws might have been broken.

Kelley has been on leave since his legal troubles began, with many calling for him to resign.