North Carolina Attorney General Josh Stein announced the conclusion of the N.C. Department of Justice’s investigation into the New Hanover Public Schools (NHPS) sex abuse case involving convicted predator and former NHPS teacher Michael Kelly.

In a nutshell, Stein said no charges are being filed because the statute of limitations has expired.

There is no formal press statement on the NCDOJ’s newsroom website amid the thousands of press releases under Stein’s tenure, but here is the statement Stein issued to media outlets covering the story:

“After a detailed review of thousands of records dating back to the late 1990s, attorneys in my Special Prosecutions Section have determined that we cannot file felony or misdemeanor charges in this matter. While some of the evidence found in our investigation suggests that some New Hanover County Schools employees may have violated the law at the time, the statute of limitations passed before these allegations were reported to the district attorney and before we received the investigation for potential misdemeanor charges. Additionally, our review determined that felony charges don’t apply in this investigation. Even though legal charges aren’t possible, the investigation made clear that for years, certain New Hanover County Schools employees failed to report potential crimes of abuse to the appropriate authorities. They failed at job one – keeping our children safe.”

“To the victims who came forward and shared their stories – thank you. The fact that the law prevents us from pursuing charges in this case does not take away from your bravery and strength. Every time someone speaks about the abuse they’ve faced, they make it easier for other victims of abuse to speak up and begin their own journey of healing. You are helping to make kids safer, and we are grateful.”

Stein also mentioned, or rather blamed, the limitations of the 2019 SAFE Child Act which he helped draft:

“These allegations underscore a disturbing reality for parents: the unthinkable sometimes happens. That is why I have made preventing child sex abuse and holding accountable those who perpetrate it a top priority. The SAFE Child Act, which my office drafted, mandates that every adult who interacts with a child has a duty to report alleged abuse and assault and extends the statute of limitations for sex crimes against children to better reflect our understanding of the long-term impacts of abuse. The law also better holds accountable institutions that negligently allow abuse to happen and fail to protect our kids. But there is more work to be done. An even longer statute of limitations for civil and criminal cases might have given my office and the victims some recourse to seek justice in this case.”

The case was initiated four years ago. Charges could have been filed had the NCDOJ moved faster.

Thank goodness the civil suit got some satisfaction in its $5.75 million settlement with NCPS.

Backstory on Michael Kelly, Serial Abuser

Michael Kelly

Michael Kelly was first arrested in 2018 on four sex crime charges related to a student, but the case quickly escalated as more victims came forward culminating in over 60 charges against him spanning almost two decades and 14 victims.

Kelly pleaded guilty in June of 2019 to the majority of charges against him.

He was sentenced to a maximum of 24 years and three months for 57 consolidated charges against him and the judge added a maximum of an additional 7 years following the completion of that first sentence.

The Timeline 

February 2o18:
Kelly is arrested and is initially charged with one count of third-degree sexual exploitation of a minor and three counts of indecent liberties with a student. His arrest was the result of a joint operation by the FBI and the New Hanover County Sheriff Department.

March 2018:
More victims are discovered and more than a dozen new charges are added.  At that time, the full list of charges against Kelly included:

• One count statutory sex offense with a child
• Two counts solicitation to commit a felony
• Five counts of indecent liberties with a child
• Five counts of sexual exploitation of a minor
• Sixteen counts of indecent liberties with a student

April 2018: Seven more victims are identified and the number of felony charges rose to 59.

• 1 Count Indecent Liberties/Student (Bond: $1,000,000.00)
• 1 Count Statutory Sex Offense w/ Child Under 15 years old
• 3 Counts Solicitation to commit (Bond: $500,000.00)
• 1 Count Attempted Sexual Offense w/ Student
• 1 Count Sexual Exploitation of  Minor (First Degree)
• 8 Counts Sexual Exploitation of  Minor (Second Degree)
• 1 Count Sexual Exploitation of  Minor (Third Degree)
• 23 Counts Indecent Liberties w/ Student  (Bond: $500,000.00)
• 20 Counts Indecent Liberties w/ child (Bond: $100,000.00)

June of 2019: 
Kelly pleads guilty to the majority of the 61 felony charges that were pending against him. Kelly surrendered his teaching license to the state in July 2019. Judge John Nobles sentences Kelly to 16 to 24 years in prison on the most serious charges of child exploitation and statutory sex offense.

Kelly’s additional 57 charges are consolidated for judgment, with Nobles adding a sentence of 20-84 months (up to 7 years) to be served following completion of the first sentence.

Kelly will serve a maximum of 24 years and three months and a maximum of an additional 7 years following the completion of the first sentence.

July of 2019:
Holliday resigned less than a week after the New Hanover Sheriff indicated an investigation had been opened into claims that the district was warned about a teacher sexually abusing students yet failed to act.

Holliday has been named in the investigation by at least two sets of parents who had complained about Kelly and other teacher behavior, according to Port City Daily. The parents allege Holliday did not act and did not report the complaints to the district.

That month, the civil lawsuit is filed by both the Rhine Law Firm, P.C. and The Lea/Schultz Law Firm, P.C.

April of 2020:
Four other victims are added to the civil lawsuit. The complaint document at that time included 10 John Does and graphic details.

May of 2021:
More victims of Michael Kelly are added to the lawsuit against the New Hanover County School district. The total number of victims rises to 13.