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Former Washington Auditor Once Again On Trial For Money Laundering

Indicted Washington State Auditor Troy Kelley abruptly returned to office Tuesday, ending a seven month leave of absence pending his federal trial.
Austin Jenkins
/
Northwest News Network
Indicted Washington State Auditor Troy Kelley abruptly returned to office Tuesday, ending a seven month leave of absence pending his federal trial.

Jury selection is scheduled to begin Monday in the retrial of former Washington State Auditor Troy Kelley.

Kelley is charged with possession and concealment of stolen property, money laundering and filing false tax returns. A jury acquitted Kelley last year of making a false statement to the IRS, but deadlocked on the remaining counts.

The charges stem from his work in the real estate closing industry prior to his time as state auditor. Specifically, Kelley is accused of pocketing millions of dollars in homeowner fees that prosecutors say should have been refunded and then concealing the money in order to avoid paying taxes.

His defense team counters that Kelley provided a valuable service, earned the money and reported everything on his taxes appropriately.

Kelley left office in January after not running for re-election.

Copyright 2017 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."