Washington state auditor Troy Kelley was indicted by a federal grand jury Thursday for tax evasion. Kelley is accused of keeping more than $2 million from a mortgage reconveyance company he operated between 2003 and 2008. (Kelley has served as auditor since 2012.) “This indictment today makes it clear to me that Troy Kelley cannot continue as state auditor,” Gov. Jay Inslee said in a statement demanding his resignation. In a statement, Kelley said the case had no merit, but would take a leave of absence while the case is resolved.