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Defendants' lawyers send Spitzer big bucks

Jan. 31, 2004 at 3:21 PM

NEW YORK, Jan. 31 (UPI) -- Some of the biggest donors to New York Attorney General Eliot Spitzer, widely expected to run for governor, are lawyers working for people he is suing.

A BusinessWeek analysis of New York state election filings found that among contributions being received by his Spitzer 2006 campaign organization are some from attorneys representing clients against whom Spitzer's office has filed charges.

For example, Spitzer received $1,000 from defense lawyer Gerald Shargel on the same day Shargel's client, William Kenyon, ex-president of Security Trust, was arraigned for grand larceny and fraud. Kenyon allegedly acted as a middleman to facilitate market timing for hedge fund Canary Capital Partners.

"On the same day that I'm having heated discussions with his office, they're (Spitzer's fundraisers) calling, saying, 'Where's my check?'" Shargel said.

Kramer, Levin, Naftalis, & Frankel, the law firm for Canary Capital head Edward Stern, has given a total of $12,000 to Spitzer -- $2,000 before the Canary case and $10,000 after a $40 million settlement with Spitzer.

Spitzer 2006 has almost $3.6 million in cash, more than double what his likely rival, Republican Gov. George Pataki, now has on hand.

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