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Saturday, April 24, 2004

Davis denies fund funneling


It's well-timed smear, candidate says

By Patrick Crowley
The Cincinnati Enquirer

Fourth Congressional District candidate Geoff Davis said a complaint accusing a Republican donor of funneling money to him through a political-action committee is unfounded. He called it a "smear campaign" launched less than a month before the May 18 GOP primary in Kentucky.

"It's quite clear it is politically motivated. It's 26 days before a primary," Davis, a Boone County business consultant, told the Enquirer's editorial board Friday.

"We have done nothing wrong," Davis said, vigorously denying the allegations. "This is a baseless charge."

But Kevin Murphy - an Erlanger lawyer also running in the primary - said the complaint filed Thursday by the Washington-based group Public Citizen is "very serious."

"They used the term 'money laundering.' That is a term that is not loosely used by anybody," Murphy said during a joint appearance at the newspaper. "It must be seriously looked at by Republican voters."

Meanwhile, Union chiropractor Kelly King, the third candidate in the race, said controversies over issues including campaign money "is exactly what got me involved" in the race.

"People are sick and tired about money like this causing problems," King said. "It's a sad day in Kentucky politics for something like this to come out 26 days before the primary. ... But I don't want to look at Davis (campaign) signs and think that sign was paid for with illegal campaign contributions."

The allegations put Davis somewhat on the defensive in the final weeks of the GOP primary. The winner will face Democrat Nick Clooney, who has no opposition inside his party.

But Davis claims to be unconcerned. "We're not going to be distracted by this," he said.

Thursday, Public Citizen, the group founded in 1971 by consumer advocate and independent presidential candidate Ralph Nader, filed a complaint with the Federal Election Commission.

The organization alleged that Republican donor and Cincinnati businessman Quentin Nesbitt improperly funneled $15,000 through political-action committees operated by conservative groups and Republican members of Congress.

The complaint states that he gave Davis the legal campaign contribution limit of $4,000 earlier this year and gave an additional $15,000 to six political-action committees.

Five of them, including the Cincinnati-based Family First anti-abortion political-action committee, contributed a total of $15,000 to Davis. All but one of the contributions went to Davis within nine days of Nesbitt's contributions to the political-action committees.

"Not only are the transfers of funds from Nesbitt to the PACs to the Davis campaign in the exact amounts and closely timed, but many of these PACs share the same post office box and the same treasurer," said Public Citizen's Craig Holman. "Every appearance is that these groups are working closely in tandem with each other and Mr. Nesbitt to evade the contribution limit."

Attempts to reach Nesbitt, the founder of Data Processing Sciences in Cincinnati, were unsuccessful. He did leave a voice-mail message Thursday but did not return subsequent messages left at his office.

Davis denied any coordination with Nesbitt or the political action committees.

Two of the committees also denied the charges.

Family First Treasurer Tim Dodds said Thursday there is "nothing to" the charges. He pointed out that Davis is the only federal candidate the group backed this year and in 2002, when Davis lost a tight race to Boone County Democratic incumbent U.S. Rep. Ken Lucas. Lucas is retiring at the end of this year.

"It happens we got money from one person, and we gave that money to Geoff Davis ... because he is 100 percent" against abortion, Dodds said.

Frank Clemente, director of Public Citizen's Congress Watch, said Davis received the contribution from Family First the same day - March 31 - that Nesbitt gave the money to the political action committee.

Nesbitt's contribution was the only contribution Family First has received this year, and Davis is the only candidate it is supporting.

"It's hard to see a legitimate explanation of these transfers of funds," Clemente said.

Davis also received a contribution from the political action committee operated by The Campaign for Working Families, the Washington-based conservative group headed by Newport native Gary Bauer.

Nesbitt had also contributed to the group.

"There is absolutely no connection or coordination here at all," said Bill Moeller, the PAC's political director.

E-mail pcrowley@enquirer.com




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