(from nytimes.com)
WASHINGTON, May 26 - A Texas judge ruled today against a political action committee tied to Representative Tom DeLay, finding that the group’s treasurer failed to report hundreds of thousands of dollars in violation of election law.
The decision in a civil lawsuit brought by five defeated Democratic candidates has no direct impact on Mr. DeLay, the House majority leader, who formed the political organization. He was not named as a defendant in the case.
But the ruling marked an important symbolic and legal victory for critics of Mr. DeLay, lending credence to allegations that he and his associates skirted legal constraints to gain the Republican majority in the Texas House in 2002. Three of Mr. DeLay’s closest associates have been indicted in a related criminal case, part of a widening controversy that has engulfed the congressman for months.
Judge Joseph H. Hart, the senior district judge in the civil case, said in a letter to lawyers on both sides that Bill Ceverha, the treasurer of Texans for a Republican Majority, should have reported $532,333 in corporate donations that was spent illegally on campaign activities rather than for administrative purposes.
Until recently, Texas law allowed businesses to donate money for administrative expenses.
Mr. Ceverha will have to pay $196,660 as a result of the ruling, a sum that will be divided among the plaintiffs. Lawyers for the plaintiffs said that they expected the defendants to appeal, but that they were confident the case laid the groundwork for Mr. DeLay’s associates to be found liable in several other pending civil suits and convicted in a criminal trial.
“This was an important first step,” said Cris Feldman, a lawyer for the Democratic plaintiffs. Mr. DeLay’s spokesman did not immediately return telephone calls for comment.
Mr. Ceverha’s lawyers had argued that the group operated within complicated new campaign finance laws, and that all of the corporate contributions had been spent on administration, an argument the judge did not accept.
A portion of the civil case remains undecided while the criminal case is under way; charges that Mr. Ceverha and two other associates of Mr. DeLay conspired to evade campaign finance laws will be addressed once Ronnie Earle, the district attorney in Austin, Tex., concludes his grand jury inquiry.
