New indictment adds money laundering to charges against Washington state Auditor Troy Kelley

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A federal grand jury has returned a new indictment against Washington State Auditor Troy Kelley, adding charges of money laundering and tax evasion to the long list of charges he already faces.

Kelley, a Democrat elected in 2012, has been on a leave of absence as he fights charges first brought in April, alleging he stole money from clients of his former business, a real estate services firm. The new charges cover actions Kelley allegedly took from 2011 to this year, while he was in office, and say that Kelley laundered money by withdrawing $245,000 annually from the pool of ill-gotten gains.

In the new indictment prosecutors also dropped one charge — an allegation that Kelley attempted to obstruct a civil lawsuit.

Kelley's attorney, Angelo Calfo, said Thursday afternoon that his client will plead not guilty.