- Associated Press - Friday, January 31, 2014

PHOENIX (AP) - Lawyers for Arizona Attorney General Tom Horne have failed to reach a deal to settle a campaign finance case against the state’s top prosecutor.

Horne’s lawyers met Thursday afternoon with Yavapai County Attorney Sheila Polk.

Horne and aide Kathleen Winn are accused of illegally coordinating spending in his 2010 election while Winn ran an independent committee called Business Leaders for Arizona. They deny those allegations.

Horne said Friday that Polk demanded an admission of liability. He says even if a settlement was in his best interest he couldn’t agree to that because “it isn’t true.”

Polk brought the civil case in October. An Arizona Office of Administrative Hearings judge will hold a hearing starting Feb. 10.

Polk ordered Horne to return nearly $400,000 to donors and is seeking civil penalties.

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