CLINTON COUNTY — Richard Kelly and his wife, former jail matron Ashley Kelly, have both pleaded guilty in connection with a case involving misuse of jail commissary funds. Following the guilty pleas, Richard Kelly has resigned as Clinton County Sheriff.
Richard Kelly pleaded guilty to one count of official misconduct and one count of conflict of interest, both Level 6 felonies. He received a 2.5-year sentence that was suspended to one year of probation. As part of the resolution of the case, Kelly resigned from his position as sheriff.
Ashley Kelly pleaded guilty to one misdemeanor count of conflict of interest and will serve 180 days of probation.
The case centers on allegations that the couple failed to disclose ownership in a company used as a pass-through vendor for commissary items sold to inmates at the Clinton County Jail. Prosecutors said the arrangement involved improper payments through an LLC, and civil proceedings previously found the pair liable for repayment of nearly $330,000.
The guilty pleas are separate from additional felony charges pending in Marion County. Those charges involve allegations that Ashley Kelly defrauded the Indiana State Police pension system while receiving disability benefits, and that Richard Kelly allegedly aided or enabled the fraud.
The legal troubles have already led to broader consequences at the county level, including Ashley Kelly’s termination from her jail matron position and the adoption of a new nepotism policy by county commissioners.
Richard Kelly also faces an unrelated misdemeanor charge in Hamilton County involving possession of an illegal handgun.
A final pretrial hearing in the Marion County case is scheduled for July 8, with a jury trial set for July 14.