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TEXAS ELECTION PROBE

New England insurers face queries on donations

The Texas district attorney whose investigation led Tom DeLay to temporarily step down as House majority leader also has questions for some New England insurance companies.

Though he hasn't formally accused any of the companies of wrongdoing, Travis County District Attorney Ronald Earle wants to know what Liberty Mutual Group of Boston, Aetna Inc. of Hartford, and other companies hoped to receive in return for donations they made to a trade group indicted earlier this month by a grand jury. Earle alleges that the Texas Association of Business misused more than $1 million in corporate contributions for 2002 state election campaigns. The state prohibits corporations and labor unions from contributing money to political candidates.

Both New England companies said they have cooperated with investigators.

The election gave Republicans control of the Texas Legislature for the first time in more than a century, and led to caps on damages in lawsuits that were favored by the insurance industry.

The cases have drawn national attention because of ties between the trade group and DeLay. Earle's office alleges that the Texas Association of Business worked closely in the 2002 campaign with another group, Texans for a Republican Majority, that DeLay helped create.

A lawyer for the Texas Association of Business said it spent the money to inform voters about various public policy issues, which it says is allowed under the First Amendment. ''At no time did the Texas Association of Business endorse any candidate, make any political contribution, or campaign expenditure," said the lawyer, Roy Minton of Austin.

At issue in the cases against the Texas Association of Business are mailers and television advertisements during the 2002 campaign. Prosecutors have cited group mailings paid for by Texas Association of Business donations that praised specific candidates.

The four indictments of the trade group were announced Sept. 8. One indictment mentioned a $25,000 donation from Liberty Mutual and two donations totaling $100,000 from Aetna.

The court filing also shows a series of contributions totaling $80,000 made to the Texas Association of Business by Connecticut General Life Insurance Co. of Bloomfield, Conn.

Liberty Mutual spokesman John Cusolito said the company's donation was intended ''to help the business community, of which we are a major part, publicize its pro-growth agenda in Texas through a voter education project." He said the company was ''not in a position to comment further" because of the district attorney's investigation into the trade group's use of the money.

Aetna wouldn't discuss specifics of the case because of the ongoing investigation. Connecticut General declined to comment.

Last year, Earle brought charges against a Boston-based group that lobbies on behalf of for-profit nursing homes, the Alliance for Quality Nursing Home Care.

Earle alleged that the Alliance violated the law against corporate campaign contributions by giving $100,000 to Texans for a Republican Majority. The Alliance has denied wrongdoing, and the case has not been resolved.

Ross Kerber can be reached at kerber@globe.com.

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