Washington State Auditor Troy Kelley has been called upon to step down by the Governor, after a 10-count indictment was handed down Thursday in Federal Court on charges of tax evasion.

Kelley was the subject of a sudden investigation, which included Federal agents raiding his home while he was away a number of weeks ago.

The Feds also ordered Kelley turn over numerous documents related to a mortgage reconveyance company he ran before becoming state auditor.

Kelley, who also served as a state representative before taking the Auditor's office a couple of years ago, had been accused by his GOP opponent of moving money around, defrauding clients, and hiding funds overseas to evade taxes.

U.S. District Attorney Annette Hayes released the following statement:

(Kelley) “spun a web of lies in an effort to avoid paying his taxes and keep more than a million dollars that he knew did not belong to him, but instead should have been returned to thousands of homeowners across this state."

Gov. Jay Inslee release the following statement, strongly suggesting Kelley step away from his position.  None of the improprieties occurred during his tenure as Auditor, and did NOT involve any state funds. But Inslee and others believe his credibility to oversee the state's finances are now compromised:

 “This indictment today makes it clear to me that Troy Kelley cannot continue as state auditor. He should resign immediately. An appointee can restore confidence in the office and assure the public that the Office of the State Auditor will operate at the high standards required of the post.”

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