Peninsula’s 3 state lawmakers agree state Auditor Troy Kelley should resign

Washington state Auditor Troy Kelley leaves the Federal Courthouse in Tacoma last Thursday after pleading not guilty to a federal grand jury indictment on charges of filing false tax returns

Washington state Auditor Troy Kelley leaves the Federal Courthouse in Tacoma last Thursday after pleading not guilty to a federal grand jury indictment on charges of filing false tax returns

OLYMPIA — The North Olympic Peninsula’s 24th District legislators have joined the growing call for first-term state Auditor Troy Kelley to resign in light of a 10-count federal indictment issued against him last week.

The charges focus on mortgage title services companies Kelley ran before being elected in 2012 to head the state agency tasked with rooting out fraud and abuse in government agencies.

“Mr. Kelley spun a web of lies in an effort to avoid paying his taxes and keep more than a million dollars that he knew did not belong to him, but instead should have been returned to thousands of homeowners across the state,” acting U.S. Attorney Annette L. Hayes said last week.

Mark Firmani, Kelley’s personal spokesman, said Monday that Kelley is awaiting word on the steps needed for the auditor to take a paid leave of absence, which he has said he intends to do May 1.

“We should have a clear picture of that by the end of [today],” Firmani said.

He said Kelley, charged with lying under oath, evading taxes and stealing more than $1.4 million, is not giving interviews.

Kelley pleaded not guilty to the charges Thursday after the indictment was unsealed. Trial was set for June 8.

“I can assure you that all of my actions over the years have been lawful and appropriate,” he said March 23 in a prepared statement.

But 24th District legislators Sen. Jim Hargrove and Reps. Steve Tharinger and Kevin Van De Wege said Monday that Kelley should resign.

They joined Gov. Jay Inslee and state Attorney General Bob Ferguson in calling on Kelley, a Tacoma Democrat and attorney, to permanently leave office.

Senate Majority Leader Mark Schoesler, a Ritzville Republican, and House Majority Leader Pat Sullivan, a Covington Democrat, have also called on Kelley to quit.

The 24th District covers Clallam and Jefferson counties and part of Grays Harbor County.

“Integrity is everything about that office,” said Van De Wege, a Sequim Democrat and the House majority whip.

Kelley is a former three-term House member.

“This has been dogging him for a while,” Van De Wege said.

“A lot of it surfaced in the 2012 campaign.”

But Van De Wege said he does not expect Kelley to resign.

Tharinger, also a Sequim Democrat, said he recognized that Kelley is innocent until proven guilty but that Kelley’s options are limited.

“In this job, being an auditor who reviews government practices, that make it more challenging to keep his job,” Tharinger said.

“It seems his ability to do that has been brought into question.

“The governor has suggested he should step down and other people have.

“That’s their pay grade to talk about statewide elected officials.”

Hargrove, a Hoquiam Democrat and a senior member of the Senate, was reluctant to weigh in on the issue but agreed that Kelley should resign.

“I have not taken time to read all the charges and all that stuff,” said Hargrove, ranking member of the Ways and Means Committee and a former House member.

“It’s not anything we get to vote on.

“I’ve totally got my head down in the budget and am trying to get out of here as soon as possible.”

________

Senior Staff Writer Paul Gottlieb can be reached at 360-452-2345, ext. 5060, or at pgottlieb@peninsuladailynews.com.

More in News

Bruce Murray, left, and Ralph Parsons hang a cloth exhibition in the rotunda of the old Clallam County Courthouse on Friday in Port Angeles. The North Olympic History Center exhibit tells the story of the post office past and present across Clallam County. The display will be open until early February, when it will be relocated to the Sequim City Hall followed by stops on the West End. The project was made possible due to a grant from the Clallam County Heritage Advisory Board. (Dave Logan/for Peninsula Daily News)
Post office past and present

Bruce Murray, left, and Ralph Parsons hang a cloth exhibition in the… Continue reading

This agave grew from the size of a baseball in the 1990s to the height of Isobel Johnston’s roof in 2020. She saw it bloom in 2023. Following her death last year, Clallam County Fire District 3 commissioners, who purchased the property on Fifth Avenue in 2015, agreed to sell it to support the building of a new Carlsborg fire station. (Matthew Nash/Olympic Peninsula News Group file)
Fire district to sell property known for its Sequim agave plant

Sale proceeds may support new Carlsborg station project

As part of Olympic Theatre Arts’ energy renovation upgrade project, new lighting has been installed, including on the Elaine and Robert Caldwell Main Stage that allows for new and improved effects. (Olympic Theatre Arts)
Olympic Theatre Arts remodels its building

New roof, LED lights, HVAC throughout

Weekly flight operations scheduled

Field carrier landing practice operations will be conducted for aircraft… Continue reading

Workers from Van Ness Construction in Port Hadlock, one holding a grade rod with a laser pointer, left, and another driving the backhoe, scrape dirt for a new sidewalk of civic improvements at Walker and Washington streets in Port Townsend on Thursday. The sidewalks will be poured in early February and extend down the hill on Washington Street and along Walker Street next to the pickle ball courts. (Steve Mullensky/for Peninsula Daily News)
Sidewalk setup

Workers from Van Ness Construction in Port Hadlock, one holding a grade… Continue reading

The first graduating cohort of EDC Team Jefferson's business advisors training stands with certificates. From left to right are George Sawyer, Kit Malone, Devin Rodriguez, Charlotte Richardson and Justine Wagner. Standing is the EDC's Executive Director David Bailiff. Sitting is the EDC's Program and Finance Manager Phoebe Reid and course instructor Ray Sparrowe.
Five business advisors graduate

Cohort studied accounting, marketing in 40-week program

Victoria Helwick.
Seaview Academy becoming popular option for online K-12 education

Port Angeles School District has about 375 students enrolled in program

x
Home Fund contributes to OMC cancer center

Funding supports patient navigator program’s effort to remove barriers

April Messenger, left, and Olympic National Park Ranger Chris Erickson share ideas on Wednesday during a listening session at Field Arts & Events Hall in Port Angeles. Nearly 150 people provided feedback about a new Hurricane Ridge Lodge project following the 2023 fire that destroyed the original structure. Nine easels were set up with questions and notes were provided for people to express their goals for a new lodge. The earliest construction can begin is in 2028, and it would take two to three years to complete, weather permitting. (Dave Logan/for Peninsula Daily News)
Listening post

April Messenger, left, and Olympic National Park Ranger Chris Erickson share ideas… Continue reading

Port of Port Townsend to pursue grant for airport

Funds aimed to spur small industrial work

Future of Oceans program to focus on puffins

Expert spent 37 years studying seabirds in Alaska