Indicted auditor Troy Kelley to argue biased investigation

SEATTLE — Attorneys for indicted Washington state Auditor Troy Kelley say the federal investigation of his case was biased.

The News Tribune reported defense attorney Angelo Calfo told a federal district judge Friday at a pre-trial hearing that investigating authorities put on “blinders,” ignoring evidence of innocence.

Kelley is accused of criminal charges that include tax evasion, money laundering and possession of stolen property related to his prior operation of a real-estate services firm called Post Closing Department.

The firm tracked certain transactions for mortgage title and escrow firms. Investigators say Kelley kept the fees that were supposed to go back to homeowners.

Federal authorities have notified about 13,000 homeowners potentially affected.

Kelley, a 51-year-old Democrat, was elected auditor in 2012. His trial starts March 14.

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