AUSTIN, Jan. 12 -- Prosecutors investigating questionable campaign fundraising in Texas by three political associates of House Majority Leader Tom DeLay (R-Tex.) have gained the cooperation of two contributors in their inquiry.
The investigation, started two years ago by the Travis County District Attorney's Office and continuing with the recent impaneling of a new grand jury, could, sources have said, ultimately target key Republicans in national or state office.
 
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Court documents filed in Travis County District Court show that two corporations accused of making illegal campaign contributions have agreed to assist District Attorney Ronnie Earle's office. The agreements were signed over the past four weeks with Sears, Roebuck and Co. of Illinois and DCS Inc., a debt-collection agency based in California.
The two corporations were among eight indicted in September by a Travis County grand jury on charges of either contributing illegally to DeLay's political action committee, Texans for a Republican Majority, known as TRMPAC, or to one of three associates who raised money for Republicans running for the Texas legislature in 2002. That election resulted in the GOP takeover of the legislature, which in 2003 passed a redistricting plan that guaranteed more Republican seats in Congress and strengthened DeLay's position as majority leader.
Those associates -- Jim Ellis, Warren RoBold and John Colyandro, the executive director of TRMPAC -- were indicted also on charges of illegally raising political funds from corporations. Texas law prohibits corporations from spending money on campaigns except for funding administrative costs such as office rent for political action committees. In dispute in the TRMPAC case is the organization's position that corporate contributions used to pay for pollsters, political consultants and phone banks were "overhead."
The agreements to dismiss the indictments say that both Sears and DCS will not make illegal contributions in the future and will "cooperate with the State of Texas in its prosecution and investigation of any other person for any offense related to the corporate contribution made."
The agreements also acknowledge that both corporations approved their contributions "on the basis of false and misleading information provided by the fundraiser." Gregg Cox, director of the district attorney's public integrity unit, said, "They were led to believe it would be legal to contribute."
Cox would not say whether similar agreements were being negotiated with other indicted corporations, and company spokesmen reached yesterday would not comment on their cases.
Lawyers representing DeLay -- who has not been questioned by a grand jury -- and for Colyandro said they were not concerned about information Sears or DCS might provide prosecutors.
"I'm saying 'great.' We want them to cooperate and give them everything they know because that will do nothing but continue to exonerate Tom DeLay and any of his associates," said DeLay attorney Bill White of Austin. "If the indictments had any guts in the first place, they wouldn't be dropping them like flies within a couple of months after indicting them."
Colyandro attorney Joe Turner, also of Austin, said he was "concerned when I see a co-defendant's case dismissed in return for cooperation. But if these people testify truthfully, there is no evidence they had any contact with Colyandro. I'm confident my client didn't do anything illegal."
