TACOMA (AP) — The Latest on the federal fraud trial of Washington State Auditor Troy Kelley (all times local):

2:30 p.m.

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.

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.

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 trial featured testimony from a former employee who told jurors that Kelley ordered him to falsify documents to hide that the company wasn’t paying the refunds.

The charges stem from Kelley’s operation of a business called Post Closing Department during the height of the housing boom.

Kelley, a lawyer himself who has taught tax law courses, faced 15 counts, including money laundering and tax evasion.

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.

1:10 p.m.

A jury says a radio news story may have affected one of its members in the federal fraud trial of Washington State Auditor Troy Kelley.

After telling U.S. District Judge Ronald Leighton that it had been able to agree on just one of the 15 counts, the jury sent out another note - this time saying a juror had “heard something on the radio that may have affected things.”

The court subsequently sent the jurors to get lunch.

12:45 p.m.

A jury deliberating in the federal fraud trial of Washington State Auditor Troy Kelley says it’s been able to reach agreement on just one of the 15 counts against him.

Most of the jurors told U.S. District Judge Ronald Leighton that in their fourth day of deliberation Wednesday, there was little to no chance of reaching agreement on the other charges.

It wasn’t immediately clear which count they agreed on.

Kelley is the first Washington state official indicted in 35 years. He is accused of illegally pocketing $3 million in fees that prosecutors say he should have refunded to homeowners when he ran a real-estate services business.

They say it happened during the height of the housing boom, before Kelley was elected state auditor.

He faces charges that include possession of stolen property, money laundering and tax evasion.

11:28 a.m.

Questions from a federal jury deliberating the fate of Washington State Auditor Troy Kelley suggest a struggle to decide at least some of the counts against him.

In their fourth day of deliberations Tuesday, the jury asked U.S. District Judge Ronald Leighton whether it’s OK to change a verdict on a certain charge after they’ve entered it on the verdict form.

The judge responded that it is. He sent them a clean form to start filling in.

The question came a day after the jurors asked what they should do if they can’t agree on certain counts. The judge told them that if they believe more time would help them, they should take it.

Kelley is the first Washington state official indicted in 35 years. He is accused of illegally pocketing $3 million in fees that prosecutors say he should have refunded to homeowners when he ran a real-estate services business. They say it happened during the height of the housing boom, before Kelley was elected state auditor.

Recommended for you

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.