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Mahoney used his own money

Lawyer says campaign funds not given to ex-aide

By Brian Skoloff ASSOCIATED PRESS | Thursday, October 16, 2008

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WEST PALM BEACH, Fla. | U.S. Rep. Tim Mahoney did not use campaign funds to buy the silence of a former aide with whom he is accused of having an affair, his attorney said Wednesday.

Mr. Mahoney, a wealthy venture capitalist, used his own money to pay Patricia Allen and her attorneys $121,000 when she threatened to file a lawsuit after Mr. Mahoney fired her from his campaign staff earlier this year, said his lawyer, Gary Isaacs.

Mr. Isaacs provided documentation of the payments to the Associated Press in an attempt to quash rumors that Mr. Mahoney, 52, may have used campaign money to pay off Miss Allen, which could be illegal. At the very least, Republicans charge, it would be highly unethical.

Mr. Mahoney, a first-term Democrat, also faces allegations of a second affair as he is embroiled in a tough re-election challenge in a district that traditionally leans slightly Republican.

He won his seat while promising to return morals and family values to Washington after former Republican Rep. Mark Foley resigned amid revelations that he sent lurid Internet messages to male teenage pages on Capitol Hill. Mr. Foley was later cleared of criminal wrongdoing.

On Wednesday, Mr. Isaacs showed the Associated Press canceled checks and wire transfers from Mr. Mahoney's personal account to him. He also provided documentation that shows the money was then sent to Miss Allen's attorney to resolve the issue.

An AP review of Mr. Mahoney's federal elections filings appeared to show that his campaign expenditures were for fundraising, advertising, polling and other legitimate uses and none went to Miss Allen as part of the settlement.

A high-level Democratic operative who has been involved with the Mahoney campaign told the Associated Press the FBI has begun reaching out to attorneys involved in the settlement as part of a preliminary probe into whether campaign laws were broken. The person declined to be identified because of the FBI's involvement.

While Mr. Mahoney clearly fired Miss Allen, 50, the settlement also called for her to sign a letter of resignation indicating she left amicably.

In his most recent financial disclosure form filed with Congress, Mr. Mahoney listed his net worth as between $3.2 million and $12.7 million.

All told, according to Mr. Isaacs, Mr. Mahoney spent $141,903 to resolve the Allen matter - $61,903 to Miss Allen; $60,000 to her attorney; and $20,000 to his own attorney. The settlement included a confidentiality agreement that prohibits both parties from discussing the details.

Miss Allen has not returned repeated telephone calls. Her attorney also did not return a telephone message Wednesday.

Meanwhile, a person close to Mr. Mahoney's campaign told the Associated Press he was having an affair with a second woman around the same time.

The person, who spoke on the condition of anonymity, said Mr. Mahoney was having a relationship with a high-ranking official in Martin County in his Florida district in 2007. At the time, he also was lobbying the Federal Emergency Management Agency for a $3.4 million reimbursement for hurricane damage there.

FEMA approved the money late last year.

Mr. Mahoney's congressional staff declined comment on the second affair allegation.