Federal judge blasts DOJ for seizing $908K in client funds from law firm trust account
A federal judge in Washington state on Thursday ordered the feds to return $908,000 to counsel for an indicted (PDF) state official.
U.S. District Judge Ronald Leighton blasted the Department of Justice for seizing the money, after claiming that the funds were allegedly obtained by state auditor Troy Kelley, before he took office, as a result of money laundering, the Associated Press reports.
Although that may or may not be true, “a pretrial seizure of property is an extraordinary step, and it challenges our fundamental belief in a person being deemed innocent until proven guilty,” Leighton told prosecutors Richard Cohen and Andrew Friedman. “We had the money in a blocked account going nowhere. … Why did you do it?”
However, Leighton held off on a request by Kelley’s new lawyer, Angelo Calfo, to use $350,000 of the amount in question for legal expenses, the AP reports. The judge said Calfo could petition the court later for permission to draw on the trust funds.
While operating a private business before he was elected as auditor, Kelley is accused of failing to refund to homeowners title fee monies related to real estate transactions after closings took place.
The Democrat, who is in his early 50s, also previously served as a state representative.
A Seattle Times article provides more information about the case.
