Department of Justice
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FEBURARY 02, 2011

BEAUMONT, Texas - A 56-year-old veteran peace officer has been convicted of federal firearms and mail fraud violations in the Eastern District of Texas announced U.S. Attorney John M. Bales today.

                Harry Leroy Kelley, a Captain with the Liberty County Sheriff's Office, was found guilty by a jury of possession of stolen ammunition and two counts of conspiracy to commit mail fraud following a two week trial before U.S. District Judge Thad Heartfield.

                According to information presented in court, from 1992 to 2009, Kelley served almost exclusively as a police officer for the Cleveland Police Department in Liberty County, Texas, and for a short time in 2009, as a captain with the Liberty County Sheriff's Office.  During a portion of that time, Kelley had control over Cleveland Police Department's firing range and at least 100,000 rounds of 40 caliber hollow-point semi-automatic ammunition.  Those rounds had been specifically manufactured for use by law enforcement officers and were provided to Kelley for use by federal agents who were required to qualify at the firing range.  Instead of using the rounds of ammunition for the intended purpose of qualifying Cleveland Police Department law enforcement officers at the range, Kelley instead converted the ammunition for his own use by exchanging it for 86 new weapons which he could sell through his business, K Ventures, and providing some of that same ammunition to customers who purchased new firearms from K Ventures.  Kelley was indicted by a federal grand jury on Aug. 4, 2010 and charged with federal firearms violations and mail fraud.

Kelley faces up to 10 years in federal prison for the firearms conviction and up to five years for each of the mail fraud convictions.  A sentencing date has not been set.
This case is being prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the ATF, the Texas Rangers and the Cleveland Police Department and was prosecuted by Assistant U.S. Attorneys John A. Craft and Joseph R. Batte.