Federal subpoena of State Auditor Troy Kelley’s office seeks records of employee

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Washington State Auditor Troy Kelley

OLYMPIA, Wash. (AP) — State Auditor Troy Kelley’s office late Friday released a federal subpoena that seeks records on an employee who worked previously for Kelley’s former real estate records company.

The FBI wants to see the employment, work and email records of Jason J. Jerue, an employee in the state auditor’s office, according to the subpoena.

It asks specifically for email discussions between Jerue and anyone else in the auditor’s office relating to Jerue’s “prior employment at Post Closing Department, an entity engaged in the business of tracking real estate title ‘reconveyance’ and lawsuits involving Fidelity National title, Old Republic Title or Post Closing Department and the commission of any criminal offense.”

Post Closing Department is Kelley’s former real estate records company.

Kelley, a lawyer, came under scrutiny a few years ago for a past business dealing.

He owned Post Closing Department, which processed and tracked mortgage title documents. A former client of his, Old Republic Title, filed suit against him in 2010, alleging that he had kept $1.2 million in fees that should have been refunded to Old Republic’s customers.

According to NPR.org, Kelley and Old Republic settled the lawsuit in 2011. Kelley paid an undisclosed amount, but admitted no wrongdoing.

Earlier Friday, Gov. Jay Inslee said he’s very concerned about an apparent federal investigation of Kelley, and is urging him to be open with the public soon about what is going on.

U.S. Treasury Department agents searched Kelley’s Tacoma home for five hours on Monday, and the feds also subpoenaed records from his office.

Inslee’s spokesman, David Postman, issued a statement Friday saying the governor wants Kelley to be open with the public as soon as possible.

Postman said Kelley called the governor Friday morning, but he would not disclose what the conversation was about. Postman says the governor is not asking for Kelley to resign, but says that he should recuse himself from “any official action involving this investigation.”

Meanwhile, state Sen. Mark Miloscia, R-Federal Way, chairman of the Senate Accountability and Reform Committee, urged Kelley to open up, too.

“The Auditor needs to come clean about the events of the past week and the subpoena served on March 6,” Miloscia said. “Until we know why this federal investigation is underway, the credibility of the Auditor’s Office is in doubt.

“The people and voters of this state deserve an explanation so we can understand the reason for these events and be able to make our own decisions about what it means or choose to investigate further. This must happen very quickly if we’re going to keep public trust in our government.”



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