Trevor Potter, a Washington attorney with ties to former President George H.W. Bush, said the Texans for a Republican Majority failed to report corporate money it spent in the 2002 elections, the Austin American-Statesman reported.
Potter testified on behalf of five Democratic legislative candidates who lost in that election. They are suing Bill Ceverha, treasurer of the political action committee.
Potter also said the group's $190,000 contribution to the Republican National Committee raised questions about whether the corporate funds were laundered into non-corporate donations for Texas candidates.
Texas election law bars spending corporate or union money on political activity, although the funds can be used to cover administrative expenses.