Reaction after jury deadlocks on key charges against WA auditor

TACOMA, Wash. (AP) - A jury has failed to reach a verdict on key charges in the federal fraud trial of Washington State Auditor Troy Kelley and acquitted him on the single count where they could agree. The jury found Kelley not guilty of one count of making a false statement in their fourth day of deliberations on Tuesday, following a trial that spanned more than five weeks.

The foreman of the jury in the federal fraud trial of Washington State Auditor Troy Kelley says jurors were never close to agreeing on the key charges against him.

Kelley was accused of pocketing $3 million in fees that should have been refunded to homeowners when he ran a real-estate services business before becoming auditor.

His attorneys insisted that the homeowners were never promised refunds, and therefore no one was harmed by Kelley's actions - even if they might have been unethical business practices.

Republican Senate Majority Leader Mark Schoesler called on Washington State Auditor Troy Kelley to resign.

"The jury has made its decision, but the public trust has been violated," Schoesler said in a written statement issued after the verdict. "The elected office of state auditor has been sullied by Mr. Kelley's trial. He should do the right thing and resign and give the electorate and the state auditor's office a chance to heal and move forward. There's a lot of work to do on government accountability and the entire ordeal has left the public unable to trust him as Washington's watchdog."

Governor Jay Inslee said in a statement, "Unfortunately, the people of Washington state do not yet have much-needed closure to Troy Kelley's outgoing legal battles. Like everyone else, we are waiting to see what the prosecutors do next. Regardless of the outcome in court today, serious questions remain about Troy Kelley's ability to fulfill his role as state auditor."