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Dispatches from public radio's correspondent at the Washington Legislature. Austin Jenkins is the Olympia correspondent for the Northwest News Network. You can also see Austin on television as host of TVW's (the C–SPAN of Washington State) weekly public affairs program "Inside Olympia."

Feds Seize Funds From Washington State Auditor

Washington Legislature
Washington State Auditor Troy Kelley faces 17 federal charges, including money laundering and tax evasion.

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.

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."