State auditor fraud trial had impact on trust

Jury deliberations begin Thursday in the federal money laundering and fraud case against Washington State Auditor Troy Kelley.

That comes after closing arguments in his month-long trial over actions in the private business real estate services business he owned before his election in 2012.  No public money is involved.

Still, the Washington Policy Center’s Vice President of Research Paul Guppy says the case is affecting public trust “a lot.”

Guppy says it's also affecting the work of the auditor's office.

He points to a performance audit of the ferry system that uncovered $100 million in waste.

But while Kelley’s been in court, the Legislature passed a budget stripping much of the money for performance audits.

“If the state auditor were an official who was unassailable, who was respected by the public, I don't think the Legislature would have tried that move,” Guppy said. “So Troy Kelley's problems are creating this second effect which is causing trouble for his agency, making it harder for them to function,” Guppy continued.

Today prosecutor Katheryn Frierson called Kelly's actions "a plain case of fraud and cover-up,” in her closing argument.

While Kelley's lawyer argued the money in question was rightfully his.

"The borrowers consented to transfer the money to Troy's company. That is not a fraud," said Angelo Calfo.

Guppy says the verdict doesn't matter when it comes to public trust.

“I think it's going to take an election, for the people to have their voice heard in order to solve this problem and really get someone into office that we can trust long term,” said Guppy.

State law says conviction of a felony will force Kelley from office. His lawyers have said that he does not intend to run for reelection this fall.

Cox Media Group