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Former state auditor Troy Kelley sentenced to one year in prison

Troy Kelley has been sentenced to 12 months and one day, followed by a year of supervised released.
Credit: KING 5
Washington State Auditor Troy Kelley

Former Washington state Auditor Troy Kelley has been sentenced to a year in prison following his conviction in December on fraud and other charges related to when he ran a real-estate escrow services business during the height of last decade's housing boom.

The sentence of 12 months and one day, followed by a year of supervised release was issued after a nearly two-hour sentencing hearing.

Last December, a jury found Kelley guilty of one count of possession of stolen property, two counts of making false statements and six counts of tax fraud.

Kelley was found not guilty on five counts of money laundering.

Kelley operated a business between 2003 and 2009 that tracked real estate sales and refinancing documents. According to testimony, Kelley's company withheld $3 million that should have been returned to homeowners. When the fees were questioned in 2008, Kelley moved the stolen money through various bank accounts to hide it.

Kelley's federal fraud trial in 2016 ended with an acquittal on one count and a deadlocked jury on more than a dozen others.

The jury of five women and seven men started deliberating after 27 days of trial. One juror admitted that she had been exposed to radio coverage but said it did not influence her ability to deliberate or reach a vote in the verdict.

WATCH: Troy Kelley found not guilty on one count after 2016 trial

The Associated Press contributed to this report.

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