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New questions dog the Harris campaign

Revelations of illegal donations undermine the Longboat Key Republican's Senate race just as it gathers momentum.

By ADAM C. SMITH and ANITA KUMAR
Published March 2, 2006

WASHINGTON - Already struggling for traction in her underdog U.S. Senate campaign, Rep. Katherine Harris faces a new crisis threatening to undermine her viability.

Days after federal prosecutors publicly linked Harris to illegal campaign contributions, the Longboat Key Republican has yet to address - or say if she ever will - a host of questions to quell her latest crisis.

"I don't know the answer," Harris' congressional spokeswoman, Kara Borie, said repeatedly Wednesday to questions about Harris' connections to a defense contractor at the center of a bribery case.

This latest problem erupted just as Harris' campaign to unseat Democratic Sen. Bill Nelson finally appeared to have quieted vocal doubters in her own party. For months, Harris had problems raising money and attracting broad GOP support. But lately, prominent Republicans had stopped openly dismissing her candidacy, and her campaign staffers boasted of a newfound sense of momentum.

Friday's plea deal, in which an employee of MZM Inc. pleaded guilty to bribing one congressman and making illegal campaign contributions to two others, including Harris, renewed questions about her electability and whether she'll stay in the race. The deadline for qualifying for the ballot is May 12.

"I don't think anybody ever lost because of how they raised their money, but her biggest problem is that she's become the laughingstock of the chattering class," said Republican consultant Bill Coletti.

Not everyone agrees. "Look at her track record, when she ran for secretary of state and no one thought she could win," said Doug McAlarney, a Republican consultant. "She's going through a pretty rough patch, but she can overcome it."

Former defense contractor Mitchell Wade, who pleaded guilty Friday to paying more than $1-million in bribes to a California congressman who has since resigned, also admitted to illegally contributing thousands of dollars to Harris.

Documents show Harris had tried to secure $10-million last year for Wade's company, which did millions of dollars of work for the federal government, to build an intelligence facility in Sarasota. Around that time, Harris aide Mona Yost went to work for MZM.

Prosecutors said Harris did not appear to be aware the contributions from Wade were illegal. The donations came from an array of MZM employees who later were reimbursed by Wade, making the donations illegal. Her office has not been contacted by investigators and it's unclear whether she or her staffers are under investigation.

Harris refused to comment Wednesday and referred questions to her congressional office.

Wade's guilty plea came after Rep. Randy "Duke" Cunningham, a decorated Vietnam veteran whose experiences were a source for the Tom Cruise film Top Gun, resigned from Congress in November. He admitted taking at least $2.4-million in bribes.

Cunningham and Harris helped each other on their campaigns in recent years. In October 2004, Cunningham was in Sarasota to help Harris raise money and appeared at a candidates debate with her. Harris attended a fundraiser for Cunningham in California.

Only a few weeks ago, Republican leaders appeared to have resigned themselves to Harris' candidacy. Gov. Jeb Bush and Sen. Mel Martinez, after saying little positive about Harris for months, publicly embraced her campaign.

Her campaign brushed off the MZM controversy, noting a Washington fundraiser held Wednesday night was hosted by many big GOP names. Court documents say Wade took Harris, described as Representative B, to dinner early last year in Washington to discuss a possible Harris fundraiser and MZM's hope for a Navy counterintelligence facility in Sarasota.

Wade later prepared a proposal for the program and submitted it to Harris' staff.

Harris sent a letter to Rep. C.W. Bill Young, the Indian Shores Republican who heads the defense appropriations subcommittee, outlining the $10-million request for the MZM facility. Young's office followed its usual policy and would not release the letter, and Harris had not decided Wednesday whether she would.

Harris sought money for six defense-related projects in her district. At least two were funded: the Medical Education Technologies Inc., which produces computerized medical mannequins, and the Roskamp Institute, which does medical research.

Harris' spokeswoman, Borie, said she does not know why the MZM project was not funded. Young's committee received 3,570 requests from 392 members last year. Most were not funded, with no explanation.

MZM Inc. employees, their spouses and the company's political action committee were Harris' biggest contributors in 2004, giving her $50,000. Harris collected 18 checks for $2,000 each on one day.

Prosecutors say $32,000 of the $50,000 she received was given to her through employees who were reimbursed by Wade. In 1994, while running for the Florida Senate, Harris collected $30,000 from a Sarasota company called Riscorp, which like MZM was investigated for violating campaign laws.

Harris initially refused to return the MZM money, but at her staff's urging eventually donated the money to charity.

MZM, which Wade started in 1993, was a high-tech national security firm that did intelligence gathering, technology and homeland security analysis and consulting for private companies and governments. At one time, MZM had almost $200-million in government contracts.

The company had offices in Washington, D.C., Miami, San Antonio, San Diego, several places in Virginia and a small office in Tampa.

Wade stepped down from MZM last June. The company was sold to an investment firm last fall and renamed Athena Innovative Solutions Inc.

Times staff writer Wes Allison and researchers Angie Drobnic Holan and Cathy Wos contributed to this report. Anita Kumar can be reached at kumar@sptimes.com or 202 463-0576.

[Last modified March 2, 2006, 01:33:13]