Phila. ties in probe of Puerto Rico race

FBI agents are focusing on campaign contributions solicited by two Philadelphia fund-raisers as part of their corruption investigation into Puerto Rico's governor, sources said.

Authorities suspect that tens of thousands of dollars in checks to Gov. Anibal Acevedo Vilá's campaign fund were "straw contributions" - donations made in the names of Philadelphia-area secretaries, administrators, and one office worker's mother - to avoid finance limits.

Some of the checks under scrutiny were raised by dentist Candido Negron and his business partner, Robert Feldman, once a top Democratic fund-raiser who is still a focus of the City Hall pay-to-play probe here.

In interviews with The Inquirer, two people whose names appear on campaign filings as contributors said they never made such payments.

For example, $5,000 in checks supposedly came from Bernice Owens, a 71-year-old Germantown woman. Her daughter Viola worked in an office for Negron. But the daughter said her mother didn't have anything to do with it.

"It was done through him," Viola Owens said in an interview, referring to Negron. "It's under investigation. I can't discuss it. "

Acevedo Vilá's reports also show that the campaign later refunded $136,000 - $68,500 of it to Pennsylvania and New Jersey residents who were listed as contributors.

The campaign agreed to make refunds in a settlement with the Federal Election Commission, which said some contributors violated limits.

But three people who are listed as receiving refunds say they never got any money back. They told The Inquirer they had been recently interviewed by the FBI. Agents are asking contributors whether they really gave the money - and whether they ever saw refunds.

Acevedo Vilá has denied any wrongdoing. The funds were raised for his campaign committee when he served as Puerto Rico's nonvoting delegate to Congress. That campaign raised nearly $800,000 between 2001 and 2004 - about $180,000 from Pennsylvania and New Jersey residents.

Attempts to reach Negron this week - through calls to past attorneys and associates, plus a visit to his last known address in Villanova - were unsuccessful.

Feldman's attorney, Henry E. Hockeimer Jr., said Feldman organized one fund-raiser and had no further involvement with Acevedo Vilá. Hockeimer said Feldman has no business ties in Puerto Rico.

Acevedo Vilá, elected Puerto Rico's governor in 2004, told local media he had no professional or personal relationship with Feldman, of Gladwyne.

Pedro T. Alvarez, a lawyer for the campaign committee, said "the policy of the committee was to return whatever was in excess" of the legal limit.

Alvarez said he couldn't vouch for what happened after the checks were mailed. "There was nothing false about the report," Alvarez said.

FBI agent Harry Rodriguez, a bureau spokesman in San Juan, said he could not confirm or deny the existence of any investigation. But he added: "The FBI has specific jurisdiction to investigate violations of federal campaign-finance laws, such as illegal, excessive corporate and straw contributions. "

Feldman once was the go-to money man for many top Democrats, including state Treasurer Bob Casey Jr., Gov. Rendell, Mayor Street, and former New Jersey Gov. Jim McGreevey.

After taking a lead in two of Casey's previous campaigns, Feldman is no longer fund-raising, for Casey in his run this year against Sen. Rick Santorum (R., Pa.) or for anybody else, Hockeimer said.

Feldman also had close ties to Ronald A. White, the Philadelphia power-broker indicted in the City Hall pay-to-play case. White died of cancer before last year's trial.

During the City Hall corruption investigation, Feldman and Negron were recorded on FBI wiretaps. In one call, White and Negron spoke on Feb. 20, 2003, and discussed Negron's trips to Puerto Rico and to Washington for Acevedo Vilá's 40th birthday.

White and Negron discussed possible partnerships, including airport and dental deals. White and Negron laughed about how much money they could make, according to a source.

Feldman, meanwhile, helped Negron raise money for campaigns - including a February 2002 event for Acevedo Vilá at the Wyndham Philadelphia at Franklin Plaza.

Feldman and Negron, business partners in DentalMatrix USA, a dental-services company, cohosted the Acevedo Vilá event, raising about $60,000.

Hockeimer said his client met Acevedo Vilá when the candidate visited Philadelphia prior to the February event.

"Mr. Feldman's role in this minor fund-raiser was to cohost, and he personally invited a limited number of individuals, some of whom donated money, some not. "

Nearly $40,000 came from donors who were listed as employees of Dental One, another Negron company.

Eight people, including six Dental One employees, listed their address at a clapboard Ridley Park apartment house once owned by Salvatore Avanzato, described on finance records as Dental One's chairman. Avanzato referred questions to his attorney, who declined to comment.

Christopher T. Mallozzi, who was listed in campaign-finance reports as a Dental One psychologist from Darby, supposedly contributed $4,000. In a phone interview, Mallozzi said he did not contribute the money, nor did he work as a Dental One psychologist. He said he was an administrator at another Negron firm until last year.

The FBI also interviewed Arnold Katz, a prominent King of Prussia insurance broker.

He said he told agents that Feldman had invited him to a 2002 fund-raiser and suggested he donate. Campaign records show he gave $5,000.

"Bob called me and asked me to attend a fund-raiser," Katz said. "I contributed because he asked me to. "

Katz said the agents also asked whether the Acevedo Vilá campaign had returned money to him. The campaign reported in its FEC filing that it returned $2,000 to Katz.

"I told them I didn't get any money back," said Katz, who for years has been a regular contributor to Republican and Democratic campaigns.

"I know when I get money from a candidate," he said, emphasizing that money typically goes just one way - to candidates. "I did not get money."