- Associated Press - Thursday, February 19, 2015

NORTHAMPTON, Mass. (AP) - A state judge has dismissed larceny charges against a Northampton woman who was accused of embezzling money connected to a failed project to build condominiums catering to older gay and lesbian people.

Hampshire Superior Court Judge Mary-Lou Rup dismissed the charges against Nancy Whitley on Wednesday.

Rup said a full recording of a police interview of Whitley wasn’t played for the grand jury that indicted her, and a police detective’s grand jury testimony presented a “distorted version” of Whitley’s involvement.

Whitley and her former spouse, Heather Whitley, were charged in the disappearance of $146,000 in deposits by potential owners of the condos planned for Easthampton in 2006 and 2007.

Charges remain pending against Heather Whitley, who has pleaded not guilty.

Nancy Whitley said she had no involvement in the theft.

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