Former Washington State Auditor Troy Kelley was once elected to manage the oversight of how the state used its resources. Now, he has been sentenced for charges related allegations of fraud during the housing boom a decade ago.
Altogether, Kelley was sentenced after his conviction for eight felony counts. The charges include possession of stolen property, making false statements under oath, and tax fraud. After two hours of deliberation in a sentencing hearing, the judge sentenced the former auditor to twelve months and one day in state prison. Upon completion of the sentence, Kelley will be required to serve one year of supervised release.
The sentencing followed after a jury in Kelley's second trial found him guilty. His first trial in federal court ended in 2017 in an acquittal of one account and a deadlocked jury on the remaining charges. The state had requested a sentence of at least seven years, while defense counsel argued that probation and a sentence of six months of house arrest were appropriate. Prosecutors also sought a forfeiture of $1.4 million, a request the judge denied. Kelly could still be on the hook for restitution payments, however, as a separate restitution hearing is scheduled in September.
The charges against the former auditor stem from private business transactions prior to his taking office. He is accused of fraud and other charges while operating a business that tracked escrow documents for title companies. He also faces additional charges for lying to federal officials during the subsequent investigation.
Fraud in Washington State
Kelley was charged by the federal government, but Washington State law also has fraud charges. Fraud is generally defined as the act of intentionally misrepresenting a material fact to another person with the intention to induce them to act. For fraud to occur, that person must not only act but be harmed by that action. Depending on the state, fraud charges can come in many forms:
- Identity theft and related crimes
- Writing bad checks (check fraud)
- Illegal possession of an ID
- Insurance Fraud, including unemployment insurance fraud
- Workers compensation fraud
- Welfare fraud
- Credit card fraud
- Payroll fraud
- mortgage fraud
- bankruptcy fraud
- securities and investment fraud
Washington law identifies six types of fraud: forgery, obtaining a signature by deception or duress, criminal impersonation in the first and second degree, false certification, fraudulent creation or revocation of a mental health advanced directive, and falsifying academic credentials.
Finding the Right Seattle, Washington Area Criminal Defense Lawyer
If you are facing a charge of fraud in the Seattle, Washington area, the Law Offices of Steve Karimi are ready to help. Steve Karimi is a former prosecutor with a law practice dedicated exclusively to defending the accused. A conviction for forgery or impersonation carries stiff penalties that can alter the course of your life. Steve Karimi has years of experience handling these types of serious cases, and in many instances has worked out plea deals that keep the criminal record of his client clear. Contact the Law Offices of Steve Karimi today to set up your free consultation.