Judge hears companies in Oxendine donation probe

ATLANTA - A lawyer for two insurance companies seeking to block an ethics investigation into contributions to Republican gubernatorial hopeful John Oxendine told a judge Thursday that the probe was politically motivated.

Daniel Meachum, an attorney for State Mutual Insurance Company and Admiral Life Insurance Company, also argued the State Ethics Commission was overstepping its authority.

``Given the politically charged environment and the political agenda within the manner in which the commission operates ... this is not an ordinary commission and this, your honor, is not an ordinary investigation,'' Meachum said.

The two insurance companies are under investigation for funneling money to Oxendine's campaign through 10 Alabama-based political action committees. Oxendine is the state's insurance commissioner and is barred from taking money directly from companies he regulates. The probe came after The Atlanta Journal-Constitution reported the $120,000 in contributions last year.

Oxendine has denied wrongdoing and has returned the money.

Fulton County Superior Court Judge Kimberly Esmond Adams said she would hand down a ruling by the end of next week.

Meachum said the commission isn't authorized to issue subpoenas before it has found any violation. But Stefan Ritter, a Georgia senior attorney general, argued the commission did have a right to request bank records and other documents to aid its investigation.

Meachum also claimed political bias because of the Oxendine connection. He argued that two members of the commission were appointed by Gov. Sonny Perdue and claimed that the governor wants former Secretary of State Karen Handel to be the GOP nominee for governor.

``Nobody wants there to be politicization of the ethical process, but there is no evidence there has been,'' Ritter countered.

Ritter and ethics commission executive secretary Stacey Kalberman said in court that no commission hearing on the case would be held before the July 20 primary election.

Meachum also asked the court to find the commission in contempt of court for planning a commission hearing on the case for late June even though Adams had issued an oral order June 3 temporarily barring any action on the case.

Ritter said there had been a misunderstanding about the scope of Adams' oral order and that the commission had canceled the hearing after Adams issued a written order June 17 and the misunderstanding was resolved.