Clinton County Sheriff Richard L. Kelly and his wife, Ashley Kelly, are both scheduled to face a Clinton County jury this spring on separate criminal cases tied to the handling of the Clinton County Jail commissary fund. The long‑running prosecutions, filed in 2022 remain set for jury trial beginning May 11, 2026 in Clinton Circuit Court.
Richard Kelly, who continues to serve as sheriff, faces three Level 6 felony counts under Cause No. 12C01‑2203‑F6‑000253. His wife, Ashley Kelly, faces three similar felony counts under the companion case, Cause No. 12C01‑2203‑F6‑000254. Both cases allege that the couple improperly profited from commissary funds through their company, Leonne, LLC, following an investigation by the Indiana State Police Organized Crime and Corruption Unit and a special State Board of Accounts (SBOA) audit.
After a series of pretrial motions, judge reassignments, and scheduling changes, both trials are now set for Monday May 11, before Special Judge Lori N. Schein in Clinton Circuit Court in the Clinton County Annex Building in Downtown Frankfort. In Indiana, a level 6 felony only has a 6 person jury, as opposed to 12 jurors present in felony level trials 1-5.
Richard Kelly Case Background
Richard Kelly’s criminal charges stem from his oversight of the jail’s commissary operations as the county’s elected sheriff. According to a probable cause affidavit by ISP Sgt. Joseph White, investigators received an initial complaint on February 3, 2021, prompting a joint ISP and SBOA investigation. The criminal cases were filed March 4, 2022.
The probable cause affidavit alleges that Richard and Ashley Kelly were the sole owners of Leonne LLC, that Ashley Kelly wrote checks from commissary profits to Leonne LLC, and that Richard Kelly also spent from the Leonne account. The affidavit further alleges that deposits into Leonne LLC from commissary profits totaled more than $177,000 in the first two years.
The State sought a change of venue in August 2022. Senior Judge Peggy Lohorn denied it on April 11, 2023. The State renewed the venue issue in 2024. Judge Lori N. Schein denied reconsideration of change of venue on December 16, 2024.
Charging information for Richard and Ashley Kelly:
Count I: Conflict of Interest, Level 6 felony
Count II: Official Misconduct based on alleged conflict-of-interest violation
Count III: Official Misconduct based on alleged criminal conversion theory
Richard Kelly has denied criminal wrongdoing and has publicly characterized the case as politically motivated, maintaining that he and his wife acted within the law in operating the commissary. The upcoming jury trial will determine whether the state can prove the felony allegations beyond a reasonable doubt.
Background on the Ashley Kelly case
Ashley Kelly’s case was filed under a separate cause number but tracks many of the same underlying facts. She is charged with three Level 6 felonies linked to the use of commissary funds while she worked in a role associated with the Clinton County Jail and Leonne, LLC. Court records show the case was reassigned to Special Judge Lori N. Schein, and is now also scheduled for jury trial in Clinton County Circuit Court on May 11th.
In addition to the criminal counts, Ashley Kelly’s situation is intertwined with civil litigation decided in 2025. In that case, a special judge ordered Ashley Kelly, Sheriff Richard Kelly and Leonne, LLC to repay more than 329,000 dollars to the state for improper payments plus related audit costs tied to commissary activity. That civil judgment is separate from the pending criminal case.
Pretrial activity and motions
Since mid‑2025, both criminal cases have produced a steady flow of filings, including motions for discovery, motions to compel, requests for protective orders and motions for continuances. Docket entries show conferences conducted via videoconference or telephonically, attorney withdrawals and substitutions, and repeated adjustments to pretrial hearing dates as the parties worked through evidentiary and scheduling issues.
Earlier jury trial dates in 2023 and 2025 were continued, and a series of pretrial conferences and motions — including motions to compel discovery and to clarify status — resulted in multiple rescheduling for both cases.
Current schedule
The most recent public docket entries list a telephonic attorney conference held April 6, 2026, followed by a final pretrial hearing and jury trial set to begin May 11, 2026, with Special Judge Lori N. Schein presiding in Clinton Circuit Court. In Ashley Kelly’s case, the May 11 setting is noted to start at 1 p.m. Richard Kelly’s case is likewise set on the May 11 jury calendar after earlier trial dates were vacated.
As of this week, there are no public docket entries showing that the May 11 jury settings have been vacated or continued, meaning both criminal cases remain on the Clinton County schedule for a local 6 person jury to hear evidence next month.
Additional Lawsuits
Separately, the Kellys have filed additional lawsuits involving the Clinton County prosecutor and the county attorney, alleging harm to their reputations and other claims. Those civil cases remain pending and proceed independently of the Clinton County criminal prosecutions, which focus on whether state criminal statutes were violated in the operation of the jail commissary.