Federal agents search state auditor's home

Federal agents raided the Tacoma home of the state's top fraud investigator.

OLYMPIA, Wash. — State Auditor Troy Kelley’s Tacoma home was searched for nearly five hours Monday by agents with the U.S. Treasury Department, according to Tacoma police and Kelley’s neighbors.

So far, the details of the search are being kept confidential. No one with the U.S. District Attorney’s office will confirm the search. Kelley told KIRO-7, he wasn’t home at the time and still has no idea why they searched his house.

In an email to KIRO 7, Kelley indicated he hasn’t been contacted by investigators.

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"I have been out of the state on family vacation since Friday night," he wrote. "We were not there when our home was reportedly searched and have not yet returned. I have not been served a search warrant and have not been informed of any reasons for a search."

In his last two years as State Auditor, Kelley has prided himself on accountability, integrity, and honesty while going after fraud around the state.

He's also a lieutenant colonel in the National Guard and works as a JAG officer.

But according to Tacoma police, at 9:30 a.m. Monday, Kelley’s home was the target of an investigation by armed Treasury agents who told Tacoma PDpolice they had a warrant.

According to KIRO 7’s news partners at the Tacoma News Tribune, which broke the story, the reasons for the search warrant are a mystery.

Kelley has been the focus of lawsuits in the past but he has never prosecuted for any wrongdoing.

In 2009, Kelley ran a company that processed mortgage titles, and he was sued by a another company which accused him of fraudulently transferring millions of dollars, covering up evidence, and failing to pay taxes.

Kelley settled that suit, three years ago by paying an undisclosed amount of money to the company. During the election for State Auditor, Kelley called the case a business dispute that was being overblown by his opponent.

The State Auditor’s elected role is to protect taxpayer funds by investigating the finances of every branch of local and state government.

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