Reilly seizes on Patrick's tie to lender

Launching a new, more aggressive stance in the governor's race, Attorney General Thomas F. Reilly demanded yesterday that Democratic primary opponent Deval Patrick reveal the income he receives from the parent of a troubled mortgage company that recently settled a multimillion dollar predatory lending case.

During the first televised debate of the Democratic primary race, Reilly seized upon Patrick's membership on the board of the parent company of Ameriquest Mortgage Co., whose lending practices were investigated by Reilly's office and with other states.

''This is a question of conflicts. You have an involvement with Ameriquest. Tell the folks how much money you make from Ameriquest," Reilly told Patrick. ''I spent a year, two years, along with 50 other states fighting Ameriquest predatory lenders, the most notorious in this nation. Maybe you can tell us how much money you make from Ameriquest."

Reilly also urged both of his Democratic opponents, Chris Gabrieli and Patrick, to release their income tax returns to the public. Patrick said yesterday, for the first time, that he would disclose more detailed information about his sources of income when he releases a statement of financial interest that the State Ethics Commission requires by May 30. That form requires candidates to disclose their income from other jobs, investments, and property holdings, but it typically asks them to report their income within a certain range, rather than to detail specific sums.

''You will see on my financial disclosure form that I have an association with the parent company of Ameriquest, and I will say on that form how much money I make from that association on that board," Patrick said.

After the debate, Patrick's campaign spokeswoman confirmed that Patrick would provide a more detailed accounting of his finances. Patrick will ''go further than simply checking the boxes on the Statement of Financial Interest and provide more detailed information about his sources of income than is required," said Libby DeVecchi.

Early this year, Ameriquest entered into a $325 million settlement to reimburse clients in 49 states for alleged unfair lending practices. Patrick, a former assistant US attorney general for civil rights, was appointed to the board of Ameriquest's holding company, ACC Capital Holdings, in August 2004. He has said he is paid more than $100,000.

Patrick seemed prepared for Reilly's criticism yesterday, saying he was asked to join the board to improve the company's track record.

''Ameriquest blew it. I know it, you know it, and more importantly, they know it, which is precisely why they invited me to come on their board, to help straighten them out," Patrick said. ''I've been involved in predatory lending issues for 20 years, starting here in Massachusetts. And that's a very, very good and important settlement, Tom. You had a role in it, and so did I."

The sharp exchange highlighted the 30-minute debate, which will air at 8:30 a.m. tomorrow on CBS-4 and was moderated by Jon Keller, a political analyst with the station. It took place as Reilly, facing a surprisingly strong challenge from Patrick, attempts to energize his campaign after several missteps earlier this year. Both candidates face a new challenge in Chris Gabrieli, a millionaire venture capitalist who was the party's candidate for lieutenant governor in 2002 and who entered the race this month.

Yesterday, in the CBS-4 studio in Brighton, Reilly sought to distinguish himself from the other candidates, particularly on tax issues.

Reilly was the only one of the three candidates who said that as governor, he would move to roll back the state income tax immediately. His opponents said they wanted to roll back the income tax -- as voters called for in a ballot referendum -- but said it would be premature to do so soon, given the state's fiscal resources.

Last year at this time, Reilly was saying much the same as his current rivals. He then opposed an income tax rollback proposed by Governor Mitt Romney on the grounds that it would be fiscally irresponsible.

None of the three candidates has taken a firm no-new-taxes pledge. Keller pressed each one to name a tax they would choose to increase if, as governor, they needed to raise revenue fast.

Gabrieli and Patrick resisted, saying they do not favor new taxes or believe there would be a need for them. Gabrieli said he would bolster the state's rainy day fund to guard against such scenarios, and Patrick said he resisted a no-new-tax pledge because he regards it as a ''dumb gimmick."

But Gabrieli and Patrick ultimately said that if forced, they would resort to progressive taxes that would focus on higher-income earners. Patrick also mentioned increasing a cigarette tax or ''sin tax" that would be narrowly focused.

Reilly refused to name a tax he would consider raising. ''I have absolutely no intention of raising taxes," he said, although he would not agree to a formal no-tax pledge. After the debate, he seized on the issue with reporters, suggesting that his opponents had been too eager to boost taxes.

''I believe that taxes are too high here in Massachusetts and they spent time debating which taxes they would raise," Reilly said. ''My goodness, taxes are high enough. And it's time to grow this economy."

Patrick bristled at the implication that he was trying to raise taxes. ''I don't have any intention of raising taxes either, although I tried to respond to your hypothetical," Patrick said during the debate.

Likewise, Reilly emphasized the issue of personal tax returns. This year, he released his tax returns for 2002, 2003, 2004, and 2005.

Reilly, who calls himself the only nonmillionaire in the race, has been portraying himself as a candidate who can relate to ''working families," and stressing his up-from-the-bootstraps upbringing. Reilly said the release of tax returns had become a tradition in Massachusetts governor's races in recent years, rebuffed only by Republicans Romney and Lieutenant Governor Kerry Healey. And he noted that President Bush and Vice President Dick Cheney agreed to release their tax returns.

Neither Gabrieli nor Patrick was moved by the argument.

''That won't be the only place I'll end up disagreeing with Dick Cheney and George Bush," Gabrieli quipped.

Each of the Democrats must garner enough party support at the June 3 convention to win a spot on the ballot in the September primary. The winner is expected to face Healey and independent Christy Mihos in the election.

The testy exchanges followed a Wednesday event where the three Democratic candidates stood together to showcase their ''unity" and pledged to win back the long-elusive governor's office from Republicans. During the debate, as Reilly and Patrick sparred, Gabrieli tried to rise above the fray, pointing out their common goal.

Yesterday, Patrick asked the other two candidates in a statement to pledge not to use negative advertising, commit to monthly debates, and agree to rally around the nominee after the primary.