Georgia Commissioner to Return $120,000 Linked to Regulated Companies

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May 12, 2009 Tuesday 10:02 AM EST

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Georgia Commissioner to Return $120,000 Linked to Regulated Companies

Caroline J Saucer

ATLANTA

Georgia Insurance Commissioner John Oxendine said he will return $120,000 in donations his gubernatorial campaign fund reportedly received from two insurance companies regulated by his office in violation of campaign contribution limits.

In a statement posted on his campaign Web site, Oxendine said his campaign did nothing illegal.

"As it appeared to us, these were not checks from an insurance company we regulate. Additionally, it appeared that these checks were from different entities, not controlled by the same person or people. Under those facts, as we understood them, accepting these contributions was perfectly legal," he said.

The funds are in the process of being returned, the Oxendine campaign's chief strategist, Jeff Breedlove, said in an interview. The campaign requested an advisory opinion from the State Ethics Commission "out of an abundance of caution," he said.

Oxendine received nearly 10 times the amount of funds allowed by state law from 10 Alabama-based Political Action Committees funded by Admiral Life Insurance Co. of America and State Mutual Insurance, the Atlanta Journal-Constitution reported May 10. The PACs were created by Donald V. Watkins, a director of both companies, which are based out of the same Rome, Ga., building and share the same chief executive officer, according to the newspaper.

In addition to a $12,200 per candidate, per campaign cycle limit, Georgia law prohibits officials from accepting contributions from regulated entities or persons.

Richard Burton, vice president of corporate compliance for State Mutual and Admiral Life, issued a company statement saying, "We had the transactions reviewed by two independent outside attorneys, familiar with both federal and state campaign contribution and disclosure requirements, who each concluded Admiral Life did not violate any existing law."

Oxendine's returning of the contributions is not a concern of the companies, Burton said in an interview. "We contributed to the PACs and we contribute to other PACs," he said. "We don't run the PACs."

Oxendine had raised $1,036,370 for his gubernatorial campaign at the end of 2008, the latest date for which information is publicly available.

The four-term insurance commissioner announced his candidacy in April 2008 (BestWire, April 17, 2008).

State Mutual Insurance has a current Best's Financial Strength Rating of B+ (Good).

(By Sean P. Carr, senior associate editor, BestWeek: [email protected])

May 13, 2009