State auditor Troy Kelley to be tried again for fraud

TACOMA, Wash. — Federal prosecutors say they plan to try Washington State Auditor Troy Kelley again on fraud charges, after his five-week fraud trial

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They made the announcement during a hearing Tuesday at U.S. District Court in Tacoma.

Prosecutors asked the judge to set a new trial date. Defense attorney Patty Eakes said she's disappointed with the government's decision to retry the case.

Prosecutors accused Kelley of pocketing $3 million in fees he should have refunded to homeowners when he ran a real-estate services business a decade ago. But after deliberating for several days, a federal jury in late April failed to reach a verdict on 14 of 15 charges against Kelley, which included possession of stolen property and money laundering.

And on the one count where the jury did agree, it acquitted him of lying to the IRS.

Associated Press