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Feds Seize Funds From Washington State Auditor

Washington State Auditor Troy Kelley
Washington Legislature
Washington State Auditor Troy Kelley

The FBI has seized a $900,000 legal retainer fee paid by indicted Washington State Auditor Troy Kelley. They said the money came from alleged ill-gotten gains related to Kelley’s former real estate services business.

The seizure of the funds was revealed Wednesday in fresh court filings in the case against Kelley. The first-term Democratic auditor is charged with possession of stolen funds and tax evasion, among other crimes. He’s pleaded not guilty.

A possible complication for prosecutors has also emerged. According to court records, the FBI forensic accountant who did most of the financial analysis in the Kelley case is now the subject of an IRS audit. He was also interviewed by FBI agents as part of an unrelated federal probe.

Copyright 2015 Northwest News Network

Since January 2004, Austin Jenkins has been the Olympia-based political reporter for the Northwest News Network. In that position, Austin covers Northwest politics and public policy, as well as the Washington State Legislature. You can also see Austin on television as host of TVW's (the C–SPAN of Washington State) Emmy-nominated public affairs program "Inside Olympia."