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Lieutenant Governor Timothy P. Murray is severing his political ties to a Beacon Hill lobbyist and key campaign fund-raiser, Robert M. Platt, amid questions about Platt's past business dealings and concerns within the Patrick administration about the relationship.
Murray, Governor Deval Patrick, and the state Democratic Party are returning thousands of dollars in campaign contributions they received from Platt last year. Patrick also has forced Platt to step down from the Falmouth Housing Authority, a post the governor named him to last year at the behest of Murray.
The moves by Patrick and Murray to distance themselves from Platt - who was an influential Republican fund-raiser for years and established a strong foothold with the current Democratic administration last year - are the result of Globe inquiries into Platt's turbulent business career.
During the 1990s, Platt faced fraud allegations in a civil proceeding by the US Department of Housing and Urban Development that stemmed from his operation of nursing homes in Agawam, Canton, Leicester, Wareham, and Newton.
The regional HUD office said Platt had improperly diverted federal funds from his nursing home facilities to himself and failed to pay taxes on the funds. "These disbursements give rise to claims based on federal common law theories of unjust enrichment, breach of contract, and/or fraud," HUD said.
Platt strongly denied the allegations but ultimately settled with HUD in early 2000, agreeing to pay $3.8 million to the government. In exchange, the government agreed not to pursue civil or criminal cases against him. In August 2001, Platt filed for bankruptcy, saying he was facing $6.1 million in debt. Terms of his HUD settlement required him to pay the $3.8 million, regardless of bankruptcy.
Murray declined to comment on his decision to jettison Platt. Michael Cohen, a spokesman for Murray's political committee, said the lieutenant governor was cutting ties with Platt because of his controversial business background. He said Murray had not been aware of the HUD allegations and settlement and Platt's subsequent bankruptcy until the Globe asked about it.
"We were not aware of any of this information in terms of his past business disputes," Cohen said. "Now that we are aware of that, it is in the best interest to move forward. Mr. Platt will not be involved in fund-raising in the future."
Aides to Patrick said he would have no comment. The issue has not created any rift between the lieutenant governor and the governor, said Patrick aides who requested anonymity because they were not authorized to speak publicly.
Nonetheless, one source involved in the discussions about creating a firewall between the administration and Platt said Murray agreed to the governor's suggestions that he remove Platt from his political finance team.
Platt appeared unruffled this week by his forced departure.
"I have been pleased to help Tim Murray on the fund-raising front, and I will remain a strong supporter of Tim and the Patrick-Murray administration, whether I am actively involved in fund-raising or not," he said in e-mail. "I value Tim's friendship and the fine job that he and the administration are doing for the Commonwealth."
When Murray tapped Platt to help fill his campaign coffers last year, the decision chafed some Democrats, because Platt has a history of involvement with Massachusetts Republicans, including his work for Mitt Romney's presidential and gubernatorial campaigns and Kerry Healy's 2006 gubernatorial race against Patrick. Platt also played a prominent campaign finance role in the GOP gubernatorial campaigns of Paul Cellucci and Jane Swift.
In giving Platt the unpaid housing post in Falmouth, the governor had replaced a local Democratic activist, Peter Kirwin, who had supported Patrick's candidacy in 2006. Kirwin had been seeking a second term with the support of the local Democratic legislative delegation, including Senate President Therese Murray.
The Globe reported in December that Platt's increasing presence in Murray's operations reflected how Patrick and Murray were turning to special interests and State House lobbyists who want to gain access at the highest level of state government. As a candidate advocating a change in the Beacon Hill culture, Patrick had denounced the flow of special interest campaign donations into the political coffers of legislators and state leaders.
Platt organized a fund-raising event last May that raised more than $60,000 for Murray. Many donors to the event were Platt's corporate clients (the billboard firm
Now, spokesmen for Murray, Patrick, and the state Democratic Party say they are returning $4,500 Platt donated to a special campaign fund operated jointly by Patrick's campaign and the party. Murray is returning $1,200 he received from Platt and his family members.
© Copyright 2008 Globe Newspaper Company.
