Partly Cloudy
77°
Morris, IL
Partly Cloudy|Forecast »

CIA scandal figure led lavish lifestyle

Text Size: AaAaAaAaAa

(Continued from Page 3)

The Kelleys were making questionable business decisions and falling into financial trouble at home as well.

In 2007, the Kelleys, along with Jill’s twin sister, Natalie Khawam, founded the Doctor Kelley Cancer Foundation to “conduct cancer research and to grant wishes to terminally ill cancer patients.” The charity filed just one tax return, saying it had raised $157,284 in 2007.

None of the three drew a salary — Scott Kelley said he was devoting 30 hours a week to the charity — but most of the money went for expenses, including $43,317 for meals and entertainment, $36,610 for travel and $5,000 for telephone costs. By the time the return was filed, the charity was already defunct, records show.

The Kelleys formed a property company, Kelley Land Holdings, but in 2010 Central Bank brought a foreclosure suit against them involving an office building they’d purchased in downtown Tampa. Public records showed they owed the bank $2.2 million. A judge ordered the property put up for sale last year.

They also fell behind in payments on their Bayshore Boulevard home, with Regions Bank filing a lawsuit in 2010 saying it was owed $1.7 million and hadn’t received any payments since September 2009. They remain in arrears.

Khawam also had legal troubles with a contentious divorce and debts totaling more than $3.6 million. She owed $800,000 to the Kelleys, $600,000 to a St. Petersburg, Fla., man and $53,000 to the IRS. She said she had sold a $15,000 sable coat and a $25,000 Rolex watch and used the proceeds to live on, according to court records.

City police also received dozens of calls from the Kelleys. Their police file, released Wednesday, fills nearly 100 pages, with reports of bike thefts, burglaries, prowlers and harassing callers.

On Tuesday, Tampa police released recordings of five 911 calls placed by the Kelleys since Sunday that complained about trespassers.

Kelley remained secluded in her house Wednesday. A throng of TV cameras waited outside, hoping for a shot of her driving her Mercedes 500 sedan with the license plate “1JK” and an emblem that reads “Honorary Consul.”

———

(Bengali reported from Tampa, and Cloud and Tanfani from Washington. Ken Dilanian of the Tribune Washington Bureau contributed to this report.)

||||4|Next Page

Comments


Reader Poll

What is your stance on a proposed 1 percent sales tax to fund local school building projects?

I'm in favor of anything that will help improve school finances
I will support it if it helps to lower my property taxes
I oppose it because I don't believe it will impact property taxes and I will just pay twice
I'm against any additional taxes
I have not heard enough yet to form an opinion