By MICHELLE R. SMITH
The Associated Press
Friday, June 30, 2006; 4:43 AM

PROVIDENCE, R.I. -- When Attorney General Patrick Lynch struck a deal with DuPont Co. to drop it from the landmark lead paint lawsuit in exchange for charity donations of about $12.5 million, he described it as an important victory for the state.

But on Thursday, the eve of the deal's one-year anniversary, a political opponent accused Lynch of influence peddling and conflict of interest as news emerged that Lynch took donations from the chief negotiator for DuPont while the deal was being worked out.

Bernard Nash, an attorney for DuPont, negotiated the deal, according to documents obtained by The Associated Press. Campaign documents filed with the state show that before and after the settlement was reached, Nash and his wife contributed $2,500 to Lynch's campaign.

The deal allowed DuPont to drop out of a lawsuit that may cost other companies billions of dollars. A jury in February decided that three of the remaining defendants were liable for creating a public nuisance by manufacturing and selling toxic products. The judge in the case has yet to decide how much, if anything, the companies must pay; an appeal is likely if the judge does not throw out the case or order a new trial.

On Thursday, the campaign of Bill Harsch, Lynch's Republican challenger in the November election, filed a complaint with the state Ethics Commission alleging conflict of interest and influence peddling, campaign coordinator Tom Shevlin said.

Harsch called the contributions and the state's deal with DuPont "completely inappropriate."

"These guys got off for $12 million that they have no written obligation to pay," he said.

Lynch said in a statement the complaint is "political opportunism at its worst" and "utterly baseless."

"I am the only Attorney General in the country to force DuPont to pay any amount, much less millions of dollars, to help protect children and make our homes and neighborhoods safer," Lynch said. He said he saw no reason to return the contributions, adding he looked forward to the complaint's "quick dismissal."

Nash called the complaint "rubbish."

"It defies logic. Would I put my career on the line at any price?" he said in a telephone interview, adding: "This is not big bucks."

He said the contributions were personal, and that he has given to attorneys general in Rhode Island and other states in the past.

"Patrick Lynch is a friend of mine," he said. "I support him, and I support maybe 30 other AGs."

Nash first made contact with Lynch's office to work out a deal for DuPont in 2003, according to court documents.

Depositions taken in January of Lynch and his chief of staff, Leonard Lopes, show Nash was DuPont's primary contact with the Attorney General's office as the deal was negotiated. The deal was announced June 30, 2005.

Donations by Nash and his wife, Phyllis, appear in documents filed with the state Board of Elections by the Lynch campaign.

The first, for $500, was made by Bernard Nash on June 30, 2004. On Dec. 20, 2005, each of the Nashes gave Lynch's campaign $1,000, the maximum individual political donation allowed in Rhode Island in a calendar year.

DuPont issued a statement saying Nash made the contributions "in his personal capacity, not in his capacity as an attorney" for the company.

According to campaign records, Lynch also accepted a $250 donation from Olivia Morgan, executive director of the Children's Health Forum, one of three charities that received donations from DuPont under the state deal. Her donation was recorded Dec. 20, 2005.

Morgan, who is also employed by the Dewey Square Group, a DuPont lobbyist, declined comment Thursday.

The Children's Health Forum works to prevent lead poisoning. The other two charities to benefit from the DuPont arrangement were the Brown University Medical School and the Dana-Farber/Brigham and Women's Cancer Center in Boston.

DuPont and Lynch's office said there was no formal written agreement laying out the terms of the deal that led to the dismissal.

Lynch is seeking a second term as attorney general. He was sworn in as the state's top law enforcement official in 2003.

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On the Net:

DuPont: http://www2.dupont.com/DuPont_Home/en_US/index.html

State Attorney General: http://www.riag.state.ri.us/