PORTLAND (AP) – The two Democratic candidates who’ve raised the most money in Maine’s 1st Congressional District race are trading shots over contributions from a wealthy hedge-fund manager.

Ethan Strimling says he’s “disappointed and surprised” by the contributions of more than $50,000 from Donald Sussman and his colleagues at Paloma Partners to Chellie Pingree.

“When someone is dumping that kind of money into your campaign, you have to ask, ‘Why are they interested? Why are they doing that?”‘ Strimling said.

Sussman, who has a summer home on Deer Isle, has given Pingree $4,600, the maximum contribution, and others at Paloma have given her an additional $46,400. Sussman also has donated in the past to a fund that helped Pingree in a previous race.

Pingree says that if elected she won’t be influenced by the money.

She says she favors tightening regulations on hedge funds and closing a tax loophole on hedge fund income.

“I don’t think that anyone who donates money to me has any illusions about how I will vote,” Pingree said. “I’m about as progressive as you can get, and I’m never going to change where I stand or how I vote.”

As of March 31, Pingree had raised $1.1 million, more than twice as much as any of the other five Democrats vying to replace Rep. Tom Allen, who’s challenging Sen. Susan Collins. Strimling was second among the Democrats in total cash raised, with $500,700 collected through the end of March.

Hedge funds like those operated by Sussman, who lives in the Virgin Islands, have become a political hot button in part because they are loosely regulated. In addition, hedge-fund managers benefit from a loophole that taxes any money that’s made as capital gains rather than income.

The Portland Press Herald reported that Pingree’s campaign declined to make her available to discuss her relationship with Sussman. “We consider him a loyal supporter and friend,” Pingree’s campaign said in a statement.

The Pingree campaign, meanwhile, has accused Strimling of manufacturing a controversy and noted that Strimling served in 2003 on the board of Casinos No! at a time when the anti-casino group accepted $300,000 from Sussman.

“This time, Sussman is not supporting him, so suddenly they decide he’s bad,” said Pingree’s spokesman, Willy Ritch.

Strimling has fueld the controversy by accusing Sussman and Pingree of dirty tricks when his campaign received a $250 online contribution from “Selwyn Sussman.” Strimling said S. Donald Sussman was trying to give Strimling a disguised contribution that could be used to blunt criticism of Pingree.

The Pingree campaign denied that it was involved, and Sussman did not respond to Press Herald questions seeking comment on the $250 donation.



Information from: Portland Press Herald, http://www.pressherald.com

AP-ES-04-22-08 0936EDT


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