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Jill Kelley's office building foreclosure case is settled

TAMPA — A $2.1 million foreclosure case involving an office building formerly owned by Tampa socialite Jill Kelley and her husband, Scott, was settled Monday, according to the judge overseeing it.

The case had been scheduled to go to trial Aug. 12 before Hillsborough Circuit Judge Christopher Sabella. Settlement terms were not disclosed, which is typical in civil cases, and attorneys for the parties could not be reached for comment.

A pretrial hearing had been scheduled Monday, but the Kelleys and attorneys did not appear as settlement talks concluded.

The case involved a three-story office building in downtown Tampa on Madison Street that the Kelleys purchased in 2008 after securing a $2.1 million loan from Central Bank. But the bank filed the foreclosure action in April 2010 after the couple failed to make loan payments.

The Kelleys bought the property using their corporation, Kelley Land Holdings. Jill Kelley is currently listed as the corporation's managing partner.

The bank said the fair market value of the property is about $1.4 million. Once that is applied to the loan, the Kelleys owed the bank more than $700,000 with interest adding $109 per day, according to a September 2011 court filing. The balance due currently was not immediately clear Monday.

That figure also did not include attorney fees.

Kelley is the Tampa hostess who unwittingly triggered an investigation that ended the careers of CIA director David Petraeus and former Central Command leader Gen. John Allen.

In 2012, Jill Kelley was named as the tipster in an FBI investigation that ultimately uncovered Petraeus' extramarital affair with his biographer, Paula Broadwell, leading to his resignation.

The affair came to light after Kelley reported threatening emails to the FBI, which turned out to be from Broadwell.

Kelley is suing the U.S. Justice and Defense departments for allegedly leaking her name to reporters.

A separate foreclosure action by a different bank on the Kelleys' $1.5 million Bayshore Boulevard home is still pending. The home's image was beamed around the world after the scandal erupted in November.

William R. Levesque can be reached at levesque@tampabay.com or (813) 226-3432.

Jill Kelley's office building foreclosure case is settled 07/29/13 [Last modified: Monday, July 29, 2013 10:50pm]
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