McCain aide's firm paid by Freddie Mac

WASHINGTON, Sept. 24 (UPI) -- The firm of a top aide to John McCain received payments from troubled Freddie Mac, two people with knowledge about the situation said.

The disclosure that McCain campaign manager Rick Davis received $15,000 a month from the end of 2005 through August undermines a remark by the Republican presidential candidate that Davis wasn't involved with the company -- one of the institutions at the heart of the financial crisis -- for several years, The New York Times reported Wednesday.

Davis's firm, Davis Manafort, received the payments from the Freddie Mac, or Federal Home Loan Mortgage Corp., until it was taken over by the U.S. government, along with Fannie Mae, Federal National Mortgage Association, whose shaky finances precipitated the Wall Street chaos, sources told the Times.

Davis took a leave from Davis Manafort for the campaign, but still benefits from Davis Manafort as an equity holder, the Times said.

The disclosure came as McCain and Democratic challenger Barack Obama spar over each other's ties to lobbyists and special interests.

McCain spokeswoman Jill Hazelbaker didn't dispute the payments to Davis's firm but said Davis had

stopped drawing a salary from the firm at the end of 2006 and his work did not affect McCain.