FBI agent: Millions in fees weren’t Troy Kelley’s to keep

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Washington State Auditor Troy Kelley (Q13 FOX photo)

TACOMA, Wash. (AP) — An FBI agent testifying for a second day in the case of indicted Washington State Auditor Troy Kelley says millions of dollars in real-estate fees collected by his former company were not his to keep.

Under questioning from a federal prosecutor, Special Agent Michael Brown on Wednesday hit back against suggestions from Kelley’s lawyer that he wasn’t obligated to return the money to homeowners.

The testimony came during a hearing at which Kelley is asking a federal judge to return $908,000 that prosecutors seized in September.

Kelley, a 51-year-old Democrat, is a former state representative who was elected in 2012 to be Washington’s auditor — the state official tasked with rooting out waste and fraud in government operations. He was indicted this year on money laundering and other charges related to his prior operation of a real-estate services firm.