Sen. Norm Coleman (R-MN) under FBI investigation

[tricky]

FBI reviewing allegations involving Norm Coleman ally, source says
Source: Inquiry involves alleged attempt to steer money toward senator
By Dave Orrick
dorrick@pioneerpress.com
Updated: 12/09/2008 11:13:49 PM CST

Federal investigators are looking into allegations that a longtime friend and benefactor tried to steer money to U.S. Sen. Norm Coleman, the Pioneer Press has learned.

Agents with the FBI have talked to or made efforts to talk to people in Texas familiar with the allegations, according to a source familiar with the situation.

Houston is where the first of two lawsuits was filed alleging Nasser Kazeminy, a Bloomington financier, tried to steer $100,000 to Coleman via his wife's Minneapolis employer. The second suit, filed in Delaware, alleges Kazeminy initially tried to get money directly to the senator.

Both Coleman and Kazeminy have denied any wrongdoing, and Coleman last month said he welcomes an investigation.

Neither Coleman nor his office has been contacted by the FBI, spokesman LeRoy Coleman said Tuesday morning.

"We have not been contacted by any law enforcement or investigative authority on this matter," he said.

On Tuesday evening, Coleman's campaign released the following statement: "We are not aware of any investigation that is under way, nor have we been contacted by any agency with respect to this matter. As we have said repeatedly, we welcome any investigation of these lawsuits by the appropriate authorities to get to the bottom of these baseless, sleazy and politically inspired allegations."

The campaign provided no evidence for the claim that the allegations are "politically inspired."

Kazeminy has declined repeated requests

Advertisement
for interviews and has not commented since releasing a one-page statement Nov. 8 flatly denying "false and baseless claims." When asked Tuesday evening whether Kazeminy had been contacted by investigators, spokeswoman Amy Rotenberg said: "We have no information along those lines. What you're telling me is news to me."
The breadth of the FBI probe is unclear. Several individuals involved in the lawsuits and their attorneys either declined to comment or couldn't be reached for comment.

FBI Special Agent Shauna Dunlap, a spokeswoman with the agency's Houston office, said, "We do not confirm or deny the existence of any investigations."

The FBI has jurisdiction over some cases of fraud, such as those alleged in the lawsuits.

The lawsuits, filed in the week prior to the Nov. 4 election, surround a Houston-based oil-drilling maintenance company known as Deep Marine, which is controlled by Kazeminy.

They allege a host of improprieties, including that Kazeminy tried improperly to send Deep Marine money Coleman's way for no legitimate reason.

One suit was filed by the company's founder and former CEO, Paul McKim, in a sworn affidavit. McKim, a Republican, has repeatedly denied his claim is politically motivated, and the Coleman campaign has provided no evidence to the contrary. The second lawsuit, by Deep Marine investors, names McKim as a defendant but makes essentially the same allegations, citing a "confidential informant."

They allege Kazeminy forged a sham contract with the Hays Cos., a Minneapolis insurer that contracts with Coleman's wife, Laurie Coleman. Laurie Coleman is a licensed insurance broker in Minnesota. Hays has confirmed that she worked for them and that they contracted with Deep Marine.

Hays has denied any wrongdoing, calling the Deep Marine contract legitimate, but has declined to provide details. Hays has said Laurie Coleman didn't work on the Deep Marine contract. An attorney for Hays couldn't be reached Tuesday evening.

Neither lawsuit alleges the money actually made it to Coleman or that the Colemans knew about the alleged plan. The suits allege McKim and another company officer were told by Kazeminy that the money was for Coleman. According to the suits, three installments of $25,000 each were paid to Hays, and McKim stopped a fourth.

Coleman has declined to release any information surrounding his wife's work for Hays outside of what is required by Senate disclosure rules, which doesn't include her income.

Kazeminy's ties to Coleman date back at least to Coleman's days as mayor of St. Paul.

In Senate disclosure forms, Coleman has reported receiving the following gifts of more than $305 from Kazeminy: a private plane trip with Coleman's daughter valued at $3,960 on Feb. 21, 2005, and a private plane trip with his wife valued at $2,870 on May 27, 2004. Such gifts were legal because they were properly reported.

The race between Coleman and Democratic challenger Al Franken remains undecided, while the state awaits results of a hand recount in the extremely narrow November vote.

Dave Orrick can be reached at 651-292-1159.

In a related story, Norm Coleman's wife is still hot.