FILE - In this April 26, 2016 file photo, Washington State Auditor Troy Kelley leaves the federal courthouse in Tacoma, Wash. The federal jury trial against Kelley on charges that he illegally pocketed millions of dollars in fees while running a real estate services business before he took office was among the top news stories in Washington state in 2016. (AP Photo/Ted S. Warren, File)
A federal judge has refused to grant former Washington State Auditor Troy Kelley a third trial on charges that he stole millions, a few hundred dollars at a time, from clients of his now-shuttered real estate closing-fee company.
U.S. District Judge Ronald Leighton, who presided over both of the previous trials, rejected defense arguments that the court was growing fatigued of the litigation and, like an umpire in an extra-innings baseball game, was making decisions aimed at ending the case rather than addressing prosecution missteps at the second trial. Leighton noted that the motion filed by Kelley’s Seattle attorney, Angelo Calfo, was the 619th docket entry in the hard-fought case.
“It is not fatigue that causes this court to deny this motion for a new trial,” the judge wrote in a one-page order. “Rather, it’s in the words from the witnesses, the lawyers and the documents that persuade the Court that justice was served.”
Calfo said Wednesday that the defense “respectfully disagrees with the court’s order, and plan to appeal after Mr. Kelley is sentenced.”
Kelley is set to appear for sentencing before Leighton June 29, where he faces up to 20 years in prison.
Kelley was convicted last year on nine of 14 felony charges by a federal jury in Tacoma during his second trial on theft, fraud, tax evasion and money laundering charges. Jurors rejected the money laundering charges, but found Kelley guilty of possession of stolen property, tax fraud and making false statements.
Prosecutors allege he stole millions from homebuyers during the pre-recession real estate boom by failing to make refunds to clients of his now-shuttered real estate reconveyance company, Post Closing Department. During his first trial in 2016, Kelley and his defense team fought federal prosecutors to a standstill, winning an acquittal on one count and a deadlocked panel on the remaining counts.
Kelley, an attorney and lieutenant colonel with the Army National Guard, was elected as a Democrat to the position of state auditor in 2012.
Both trials were was bitter and hard-fought, with conflicting testimony by expert witnesses, hundreds of exhibits and complex explanations of the real estate escrow process. Kelley’s attorneys contended that he was being targeted by federal agents being pressured to make a case against him.
Gov. Jay Inslee and other state officials called for Kelley to step down. Kelley took seven months of leave amid his prosecution and did not seek re-election.
