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FEC: Coleman can tap funds for his legal bills

He can use the money to pay for expenses related to two campaign lawsuits.

Last update: June 25, 2009 - 11:14 PM

The Federal Election Commission voted Thursday to allow Norm Coleman to use campaign funds to pay for legal bills associated with two lawsuits alleging that a supporter tried to maneuver money to the former senator's family.

The suits, filed in Texas and Delaware, allege that financier Nasser Kazeminy steered at least $75,000 through a Twin Cities insurance company employing Coleman's wife.

Coleman is not a party to the lawsuits, which involve a Texas company, and he has denied any wrongdoing.

Coleman also received permission to use campaign funds to respond to complaints filed with the Senate Ethics Committee that stemmed from the lawsuits.

On Thursday, the FEC decided between two draft opinions and, in a 4-2 vote, opted for the more expansive one. This version allows Coleman to use campaign cash to represent himself in the lawsuits, in which he could be a potential witness, and for all costs associated with monitoring them. Both versions allowed him to pay for the legal costs of responding to media inquiries.

Ben Ginsberg, an attorney for Coleman, said in an interview shortly after the ruling that Coleman sought to use campaign funds because the lawsuits are directly linked to his role in Washington.

"The legal test is, would he have had these bills if he were not in office?" Ginsberg said. "And the answer ... is that this was all wrapped up in his being in office and being a candidate."

The Minnesota DFL has previously opposed Coleman's request because donors "believed that they were donating to his campaign, not to help defend him from his personal legal problems."

Ginsberg said he was pleased with the ruling, which he called consistent with the FEC's past decisions on the matter.

Commissioners emphasized during the hearing that their decision does not authorize Coleman to use recount funds for expenses linked to the lawsuits.

The vote also authorizes Coleman to use campaign funds to respond to a possible FBI investigation prompted by a 2008 request from a liberal group.

It remains unclear whether the FBI has contacted Coleman.

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