Clinton County Strips Fiscal Power From Arrested Sheriff and Wife
FRANKFORT, Ind. — In a move described as “extraordinary and unprecedented,” the Clinton County Council voted unanimously Tuesday to demand the immediate resignation of Sheriff Richard Kelly and Jail Matron Ashley Kelly.
The decision follows the Friday arrests of the couple on multiple felony charges, including fraud, theft, and official misconduct. The charges stem from an Indiana State Police investigation claiming the Kellys misappropriated ISP pension funds after lying about Ashley Kelly’s disability status.
“Extraordinary and Unprecedented”
Council President Alan Dunn opened the discussion by reading a formal statement that set a somber tone for the meeting. He highlighted that the county is navigating uncharted territory due to the combined weight of the new criminal charges and prior financial controversies.
“The extraordinary and unprecedented events of the last few days… have resulted in fiscal and operational circumstances never before faced by the elected leadership of Clinton County,” Dunn stated. “In light of this trend of both alleged and adjudicated fiscal malfeasance, this council finds it very concerning that Sheriff Rich Kelly and Matron Ashley Kelly continue to have access to the funds and fiscal management tools of the Clinton County Sheriff’s Department.
Dunn specifically pointed to a prior civil judgment where the Kellys were ordered to pay more than $329,000 back to the county for the mishandling of local commissary funds—a case that remains a point of contention as the county seeks to recover those misappropriated resources.
The council’s resolution, which passed 5-0, serves as a formal “vote of no confidence.” Council members expressed deep frustration over the six-year tenure of the Kellys, which has been marked by litigation and friction between the Sheriff’s Office and other county branches.
Council member Jeff Chenoweth offered a blunt assessment of the situation, noting that county leaders have spent years trying to mitigate the actions of the Sheriff and Matron.
“For the last six years, it’s been zigging and zagging and trying to stay in front of everything that they have been doing and just fighting the commissioners and the council,” Chenoweth said. “Their day is going to come… I’m glad that this is finally going to be over.”
Chenoweth also urged residents to take action, telling taxpayers to “make some noise” and “make some phone calls” to voice their opinions on whether the Kellys should remain in their positions.
Fiduciary Responsibility and Operational Changes
Beyond the call for resignation, the Council took steps to strip the Kellys of their financial oversight. The resolution directs the temporary transfer of operational fiscal management for the Sheriff’s Department to the Clinton County Auditor.
Council member Mary King emphasized that the move was necessary to keep the county running.
“I’m disappointed for the employees and the deputies of Clinton County Sheriff’s Office,” King said. “This council has a fiduciary responsibility to ensure that the Sheriff’s Office is able to continue functioning through this time.”
A significant factor in the council’s urgency is a no-contact order issued by the Marion County Court, which prohibits the Kellys from interacting with several employees at the Sheriff’s Office and jail. President Dunn noted this order effectively prevents the Kellys from being present at the facility during regular business hours, rendering them unable to perform their duties.
The Legal Road Ahead
The Kellys appeared in an Indianapolis court on Wednesday for an initial hearing. They face Level 5 and Level 6 felony charges that could result in one to six years of incarceration if they are convicted.
Prosecutors say Ashley Kelly received more than $205,000 in disability payments despite evidence—including photos of her horseback riding and parasailing—that contradicted her claims of physical incapacity.
As part of their pre-trial conditions, the Kellys have been ordered to have no contact with firearms and no contact with witnesses. A pre-trial hearing is scheduled for July 8th, with a jury trial slated to begin on July 14, 2026.
The Clinton County Council is also calling on the Indiana General Assembly to strengthen state laws to allow local governments more tools to remove elected sheriffs in “egregious situations.”
Summary of Charges:
Sheriff Richard Kelly: 2 counts Fraud, 1 count Theft, 1 count Official Misconduct; 1–6 years incarceration
Jail Matron Ashley Kelly: 2 counts Fraud, 1 count Theft, 1 count Official Misconduct; 1–6 years incarceration
