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Nickdfresh
09-08-2005, 08:14 PM
3:49 PM PDT, September 8, 2005

PAC Linked to DeLay Indicted in Funding Probe
By Richard B. Schmitt, Times Staff Writer

WASHINGTON -- A Texas grand jury today indicted a political action committee affiliated with House Majority Leader Tom DeLay (R-Texas), alleging that it took illegal campaign contributions during the 2002 election that led to a historic realignment of the Texas Legislature.

The charges, which include indictments against one of the state's oldest and largest employer groups, arise out of a more than two-year probe by local prosecutors into the use of corporate money to bankroll Republican candidates for state office.

The indictments allege violations of a state law that bans corporate contributions to state legislative candidates.

DeLay, one of the most powerful figures in Congress, was not named in the indictment, although three individuals associated with the political action committee, known as the Texans for a Republican Majority, were indicted last year.

In a statement, the House leader said the allegations were "limited to a political organization," but also acknowledged that he had "voluntarily" spoken with investigators last month at the Travis County district attorney's office who are overseeing the probe.

"Mr. DeLay explained to officials what he has always said publicly: his role ... was limited to serving on the political action committee's advisory board along with other elected Texas officials and to appearing at fundraising events," spokesman Kevin Madden said. "Mr. DeLay assured the district attorney's office that he was not involved in the day to day operations ... and to his knowledge all activities were properly reviewed and approved by lawyers" for the political action committee.

The indictments unsealed today alleged that the Texas Assn. of Business and the Texans for a Republican Majority worked together in a complicated arrangement to circumvent the state's election code.

Ronald Earle, the Travis County district attorney, said "massive amounts of secret corporate wealth" were illegally funneled into the coffers of Republican candidates during the 2002 campaign. The business group was charged with fraudulently soliciting money from corporations, and making illegal contributions, in violation of state election law.

The political action committee was charged with illegally soliciting and accepting corporate contributions, including contributions from AT&T Corp. and a group calling itself the Alliance for Quality Nursing Home Care.

Roy Minton, an attorney for the business group, said the state was attempting to criminalize activity that is protected by federal law. According to the indictments, the group paid more than $1.1 million in corporate money for mailings to voters and television advertising.

"The indictments leave out all the federal law that there is as to the constitutional right of any business to inform the public concerning the voting record or any conduct on the part of candidates for office," Minton said. "That is not something that can be regulated by the state through its election code."

Link (http://www.latimes.com/news/nationworld/nation/la-090808delay_lat,0,2520589.story?coll=la-tot-promo&track=morenews)