08 January 2006

A Donor Who Had Big Allies

DeLay and two others helped put the brakes on a federal probe of a businessman. Evidence was published in the Congressional Record.

By Richard A. Serrano and Stephen Braun, Times Staff Writers

WASHINGTON — In a case that echoes the Jack Abramoff influence-peddling scandal, two Northern California Republican congressmen used their official positions to try to stop a federal investigation of a wealthy Texas businessman who provided them with political contributions.

Reps. John T. Doolittle and Richard W. Pombo joined forces with former House Majority Leader Tom DeLay of Texas to oppose an investigation by federal banking regulators into the affairs of Houston millionaire Charles Hurwitz, documents recently obtained by The Times show. The Federal Deposit Insurance Corp. was seeking $300 million from Hurwitz for his role in the collapse of a Texas savings and loan that cost taxpayers $1.6 billion.

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