The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, July 29, 1995                TAG: 9507290298
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   72 lines

RATHER THAN VIOLATE VA. LAW, ALLEN RETURNS $100,000 TO 2 DONORS BROTHERS WANTED 2 DEMOCRATS DEFEATED.

Gov. George F. Allen has returned $100,000 donated to his political action committee because the two donors wanted the money to be used to defeat two specific Democrats, a move prohibited by state law.

Allen said Friday he was unaware of the donors' intentions when he accepted the money in May.

``I looked at it as a contribution to all the campaigns,'' the Republican governor said. After he learned the donors' intentions, he returned the money June 30.

``It's wrong and I wasn't going to be a part of it,'' Allen said. ``The key thing to our campaign finance laws in Virginia is disclosure.''

Allen said the donors apparently made an innocent mistake.

The money was returned after he learned that brothers Edward and Peter Via wanted their money to be used exclusively by the Republican opponents of House Majority Leader C. Richard Cranwell, D-Vinton, and Del. Clifton A. Woodrum, D-Roanoke.

Cranwell helped orchestrate the General Assembly's gutting of Allen's initiatives in the last General Assembly session, and Woodrum is a close Cranwell ally.

The two $50,000 donations were illegal under Virginia laws that prevent candidates from hiding the sources of their contributions.

``I spoke to the person who handles their financial matters, that's when I was informed of their intent,'' said Chris Nolen, executive director of Allen's PAC. ``I went back and checked out what actually could and couldn't be done. . . . We returned the contribution after that.''

Allen established the PAC, called the Campaign for Honest Change Committee, to help Republican candidates in the November elections. The GOP needs to add three seats in the House of Delegates and three in the Senate to gain its first majority in the Assembly.

The $100,000 refund represented nearly 25 percent of the funds raised at a PAC dinner in May.

The two Republican candidates, Trixie Averill and Newell R. Falkinburg, say the brothers have since donated $50,000 to each of their campaigns.

Peter Via, a private investor, and Edward Via, a publisher, have unlisted phone numbers and could not be reached for comment. Their attorney, John Rocovich, declined to comment.

Averill, who is opposing Cranwell, said the Vias probably did not realize their request was illegal. ``As far as knowing the ins and outs of politics, they don't,'' she said.

``The Vias and a lot of our contributors have a concern about publicity and anonymity, and we try to respect that,'' said Falkinburg, a Roanoke physician challenging Woodrum.

``It's kind of distressing to know that people would try to break the law,'' Woodrum said. ``The governor's office is to be commended for not allowing the law to be broken.''

The contributions give a significant boost to the Republican challengers in races that already are shaping up as among the most expensive in the House.

In June 30 finance reports, which do not reflect the Vias' money, Averill had raised $46,000 and Falkinburg had received $45,000. Cranwell had raised $66,500 and Woodrum had collected $85,600.

The Vias are scions of one of Roanoke's wealthiest families, worth hundreds of millions of dollars. Their grandfather, Harry Bradley, made his money in manufacturing.

Their mother, Marion Bradley Via, was known as the area's most generous philanthropist.

KEYWORDS: CAMPAIGN FINANCE CAMPAIGN CONTRIBUTIONS POLITICAL

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