DeLay lawyers argue over money laundering

AUSTIN, Texas, Oct. 2 (UPI) -- Sides in the Tom DeLay campaign finance investigation argued over whether a Texas money-laundering statute applied to checks or just cash, lawyers said.

Lawyer J.D. Pauerstein, who represents DeLay associate Jim Ellis, former head of Americans for a Republican Majority Political Action Committee, argued Travis County District Attorney Ronnie Earle's role in changing the law suggested he knew all along he had a fatal flaw in his case, the Austin (Texas) American-Statesman reported.

But Earle said that prosecutors were simply updating a cumbersome law to include electronic funds transfers -- and that money laundering always included checks.

Former House Majority Leader DeLay -- and associates Ellis and John Colyandro, former head of the political action committee Texans for a Republican Majority -- are accused of laundering $190,000 of corporate checks into campaign donations during the 2002 elections. Corporate money is generally banned from state campaigns.

DeLay publicly denied the charges, saying the actions of Earle, a Democrat, had partisan motivations. Earle said last December he would not seek re-election.

DeLay's lawyers maintain the corporate donations came from normal and legal business activity and therefore could not be considered laundered money.

DeLay resigned his House seat in 2006 amid pressure from fellow Republicans.