Giuliani Still Working at Firm He Promised to Leave

Reed said if he were managing Giuliani, another multimillionaire, he would have advised the candidate to step aside from his firm as soon as the race started.

"I think it always is wise to close down all of these other efforts . . . so that, one, you give the campaign 100 percent, and two, you don't give your political enemies possible ammunition," he said.

One concern among ethics experts is that Giuliani's continuing affiliation with the firm might create a public perception that clients with business that could be affected by a Giuliani presidency might hire the firm to curry favor.

The firm's past clients had many connections to government. They include:

¿ Purdue Pharma, which resolved a lengthy Drug Enforcement Administration investigation into the security of its OxyContin painkiller with only a fine, with the Giuliani firm's help.

¿ A confessed drug smuggler who hired Giuliani to help ensure that his company could do security consulting business with the federal government in the post-Sept. 11 period.

¿ The horse-racing industry, which hired Giuliani's firm to review the security of its betting systems after a wagering scandal shook public confidence.

¿ BioOne, a company that can do biological cleanups, such as its cleaning of a Florida media building after the 2001 anthrax attacks.

¿ Energy giant Entergy, which hired Giuliani's firm to help tighten its security.

In addition, Giuliani's firm created a spinoff called Giuliani Capital Advisors, which advised companies on bankruptcies and expansion in the homeland security marketplace. Giuliani sold that arm of the firm earlier this year.

Research editor Alice Crites contributed to this report.