Local News

State Auditor-Elect Troy Kelley

A Public Disclosure Commission review has determined that state Auditor-elect Troy Kelley violated a handful of minor regulations while disclosing his finances as a state representative.

But the commission also found that other allegations made by Republicans during a nasty campaign for state auditor were unfounded.

PDC Chairman Amit Ranade has scheduled a hearing for Thursday to settle the case and potentially determine a punishment. The maximum fine is $500.

The PDC review found that Kelley, a Democrat from University Place, failed to file a revision to his personal financial affairs statement in a timely manner. It also found that one of Kelley’s financial statements failed to disclose a set of required facts about a company he partially owned, the mortgage document-tracking company, United National, LLC.

“The PDC staff is recommending a minor violation,” Kelley said through a spokesman. “I’ve been working with the PDC staff to ensure everything is filed correctly.”

Indeed, PDC spokeswoman Lori Anderson described the allegations as minor.

They came to the agency’s attention from a lengthy complaint filed in September by Republican State Party Chairman Kirby Wilbur. At the time, Republicans were seeking to highlight a variety of financial issues in Kelley’s past, including a 2010 case in which he paid an undisclosed settlement to a business customer who accused him of  ”fraudulently transferring funds, intentional spoliation of evidence, shady business schemes, tax evasion, and hiding from creditors” $3.8 million in newly formed accounts.

Kelley beat Redmond business-development consultant James Watkins 53 percent to 47 percent last month.