DeLay Accused in Funding Case

A Texas businessman who has pleaded guilty to illegal campaign donations says in an affidavit that House Majority Whip Tom DeLay (R-Texas) encouraged him to circumvent election laws. “The allegations are false,” said DeLay spokesman John Feehery. Peter F. Cloeren, chief executive of Cloeren Inc., has pleaded guilty to funneling $37,000 in corporate funds into the failed 1996 campaign of House GOP candidate Brian Babin. He was fined $200,000, as was his firm. In the affidavit, Cloeren said Babin had instructed him to reimburse “loyal employees” who could give to Babin’s campaign. In August 1996, after Cloeren had already twice funneled large donations through employees to Babin, DeLay encouraged him to raise more for Babin, Cloeren said in the affidavit.