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Petraeus Sex Scandal: Kelley family finances, charity under scrutiny

9:08 PM, Nov 14, 2012   |    comments
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South Tampa, Florida -- The financial fallout from the scandal surrounding the two generals, a publicist and a South Tampa family, may be more than the Kelley family of Hyde Park ever bargained for.

The curtain on their opulent lifestyle and social life has been drawn back as a result of the scrutiny to expose some much more serious problems.

The Kelleys have gone from whistleblower to questionable participants in a national scandal, and their personal -- even financial -- lives are being picked apart.

In at least one case, the family set up a charity that has people asking if it was selfless or selfish. We asked Tampa accountant Jerry Davies to review the 2007 tax forms from the Kelleys' non-profit charity called "The Doctor Kelley Cancer Foundation." Its stated goal was to improve the life of terminally ill adult cancer patients.

Jill and Scott Kelley, as well as Jill's twin sister Natalie, are listed as the directors. The charity's address? Their home on Bayshore Boulevard.

"I haven't seen this particular type of charity," said Davies, poring over the pages.

According to the forms, the Kelleys' charity took in $157,284 in public support in 2007. $43,000 of it was spent on meals and entertainment.  $38,000 on travel.  $25,000 in lawyers fees. And thousands upon thousands more on car expenses, bank charges and other costs.

So what was left? Not a lot.

Davies says just over a third of money raised was directed to the charity's stated purpose and without back-up documents, there's no way of knowing  who the money was spent on, or for what.

"This one would have a red flag for a forensic audit," he said, "Going back to the original source documents of the people involved, to find out if the information filed here is legitimate."

Yet even as the Kelleys hosted those now-famous parties, they reportedly racked up tens of thousands in unpaid charge cards, hundreds of thousands in personal debts and legal fees, and even faced foreclosure on their Bayshore mansion. 

According to the tax form, Jill Kelley also somehow managed to devote 20 hours a week to the charity. Her sister another 10. And despite his high profile job as a cancer surgeon, Scott Kelley claimed to put in an average or 30 hours a week.

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Officials at the highly-regarded Moffitt Cancer Center would only tell us that they and Dr. Kelley parted company in April of 2008. That's right around the same time the Kelleys would have been filing these tax papers.

According to the 2007 return, the $157,284 raised by the Kelleys is exactly how much their charity spent... every last dollar.

The next year, according to state records, the foundation was dissolved. 

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