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Mower county attorney looking into campaign contribution
August 27, 2003

Austin, Minn. — (AP) - A Mower County grand jury will investigate whether an insurance company broke any laws with a $15,000 contribution that was allegedly routed into Gov. Tim Pawlenty's gubernatorial campaign, the county's attorney has announced.

Mower County Attorney Patrick Flanagan said Tuesday that the probe was provoked by a complaint from an unidentified county resident. Flanagan said Pawlenty is not a defendant in the complaint.

The complaint alleges that Florida-based American Bankers Insurance Company violated Minnesota campaign finance laws restricting corporate contributions by giving $15,000 to the national Republican Party. The money was passed on to the state party and may have trickled down to Pawlenty's campaign.

In February, the company settled long-investigated claims that it broke insurance laws for $2 million in fines and reimbursement costs, a lower penalty than some state regulators were seeking. The company also agreed to stop operating in the state for five years.

A former top regulator under ex-Gov. Jesse Ventura has accused Pawlenty's administration of going lighter on the company because of the contribution. A legislative auditor's report found no firm connection between the ultimate penalty and the donation.

American Bankers reportedly sent a similar contribution through Democratic channels meant to support DFL gubernatorial candidate Roger Moe. Flanagan didn't immediately return a call Wednesday from The Associated Press about whether that donation will also come under scrutiny by the grand jury.

If found guilty of the charges of violating the state's campaign laws, the American Bankers Insurance Company could be fined and barred from doing business in Minnesota.

American Bankers spokesman Jim Sykes said Wednesday that the matter was thoroughly reviewed by the auditor and the company sees no reason for another probe.

"We believe the contributions were made through appropriate legal channels," Sykes said.

Flanagan said Minnesota statutes "obligate" him to investigate the complaint.

Flanagan said the grand jury would be convened soon but didn't say when. Flanagan has conducted a preliminary investigation in the last two weeks.

(Copyright 2003 by The Associated Press. All Rights Reserved.)

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