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Troy Kelley Hit With New Money Laundering, Tax Evasion Charges

In 2012, then-candidate for state auditor Troy Kelley met with reporters to address allegations against him in court documents posted online by his Republican opponent.
Austin Jenkins
/
Northwest News Network
In 2012, then-candidate for state auditor Troy Kelley met with reporters to address allegations against him in court documents posted online by his Republican opponent.

Washington State Auditor Troy Kelley faces additional charges of money laundering and tax evasion. The U.S. Attorney’s office announced the new charges Thursday afternoon.

The charges are contained in a superseding indictment against Kelley. The first-term Democrat now faces a total of 17 federal charges, including five new counts of money laundering and three more counts of tax evasion.

The alleged money laundering happened between 2011 and 2015 when, according to federal prosecutors, Kelley schemed to transfer and use “stolen funds” for his own use.

U.S. Attorney Annette Hayes said in a press release, “The superseding indictment alleges that Mr. Kelley’s scheme continued even after his election to statewide office.”

Attorney Angelo Calfo, who recently took over Kelley’s defense, said his client will plead not guilty to new charges of money laundering and tax evasion. Calfo called the federal investigation “misguided.”

“I think the new indictment is just lipstick on a pig,” he said. “These are basically the same charges, fundamentally the same. They’re based on what we view as a misguided investigation and an inaccurate set of facts.”

Kelley faces trial next January. One previous count of obstruction has been dropped.

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."