Government Is Investigating Edwards Contributors

This month, Sen. John Edwards of North Carolina won headlines by reporting that contributions to his Democratic presidential campaign topped those of any other candidate: $7.4 million during the first three months of the year.

Now, his fund-raising prowess is proving to be a mixed blessing: The words “investigation,” “Justice Department” and “John Edwards” are appearing in the same sentence.

The Justice Department is probing whether an Arkansas law firm violated federal campaign finance laws in connection with money given to the Edwards campaign.

There has been no suggestion that the Edwards campaign, or Edwards himself, did anything wrong.

Still, just the hint of scandal at the start of a campaign, when voters’ impressions of candidates are in a formative stage, makes politicians uneasy.

“It’s the last thing in the world you need,” said Kenneth Gross, an attorney specializing in election law.

At issue are $2,000 contributions -- the maximum under the law for individuals -- by secretaries and paralegal assistants at the Turner & Associates law firm in Little Rock, Ark.

The Justice Department is looking into whether they were promised, or received, reimbursement from Tab Turner, the firm’s principal lawyer.

Contributions made in the name of someone else are illegal.

The Washington Post recently reported that one donor had told the paper that Turner had said he would reimburse her for her contribution. The Post said Turner said he would not reimburse her.

Calls to the Turner firm were referred to a law office in St. Louis. Calls there for comment were not returned.

A law enforcement source familiar with the investigation confirmed its existence and said it was being handled by the election crimes division of the Justice Department’s public integrity unit.

The source indicated that the probe does not extend to the Edwards campaign itself.

It wasn’t clear how many people federal investigators have interviewed or whether other law firms are likely to be questioned.

A Justice Department spokesman, citing department policy, declined to confirm or deny the existence of any investigation.

Jennifer Palmieri, Edwards’ spokeswoman, said the campaign had returned the five $2,000 contributions it had received from employees at the Turner firm.

“We’re very proud of the very stringent standards our fund-raising department operates under,” Palmieri said. “We have a serious vetting process. We’re proud of the high ethical standards our campaign operates under.”

She also said Edwards was “glad to learn the appropriate law enforcement authorities were taking action” to look into whether any wrongdoing was committed.

At this early stage of the race for the 2004 Democratic presidential nomination, one key measure of a candidate is his or her ability to build a campaign treasury.

It provides the funds needed to operate the campaign -- to pay for the candidate’s travel, for example, and for office expenses. And nine months before the first votes will be cast it provides a visible demonstration of support.

So Edwards’ campaign was happy to report his fund-raising success when it filed a mandatory first-quarter report on April 15.

Of the $7.4 million he raised, more than half came from the legal community.

Edwards, a first-term senator, was a successful trial lawyer before turning to politics, often representing plaintiffs suing for alleged injuries on behalf of medical patients or their survivors. Most of his contributions were in $2,000 increments.

Stuart Rothenberg, an independent political analyst, said suggestions of “hanky-panky” involved in Edwards’ fund-raising operation could “cast a shadow” across his candidacy.

But, Rothenberg added, if the inquiry into the contributions does not turn up mistakes by the campaign and if similar problems do not occur again, the matter likely will have no effect on the public’s impression of Edwards.