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Search Of Troy Kelley's House, Computers Raises More Questions

Austin Jenkins
Northwest News Network
IRS agents searched Washington State Auditor Troy Kelley's Tacoma home in March.

A search of Washington State Auditor Troy Kelley’s home in March turned up bundles of spreadsheets that appeared to be the kind of documents Kelley said had been destroyed in a 2008 fire.

Documents related to that search and a search of Kelley’s computers were made public late Thursday.

In 2012, when Kelley was running for state auditor he was asked by reporters about a Nevada corporation he owns called Blackstone International.

He said Blackstone was a holding company, not an operational one. But a few months later he told IRS agents something different -- that Blackstone had taken over the document tracking work that now has Kelley facing a 10-count federal indictment.

Documents found in Kelley’s home seem to support that story. If Blackstone had become an active company, that could bolster Kelley’s defense against charges of tax evasion. But in the search warrant a federal agent seems suspicious that could also be a cover story.

Kelley has pleaded not guilty to a 10-count indictment. He goes on leave Monday.

Since January 2004, Austin Jenkins has been the Olympia-based political reporter for the Northwest News Network. In that position, Austin covers Northwest politics and public policy, as well as the Washington State Legislature. You can also see Austin on television as host of TVW's (the C–SPAN of Washington State) Emmy-nominated public affairs program "Inside Olympia."