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New questions arise over Steele payments to sister's defunct company

February 10, 2009|By Tricia Bishop , tricia.bishop@baltsun.com

But Steele spokesman Curt Anderson said in an interview yesterday that Turner hosted two fundraising events, for which she hired caterers, and designed advertisements through the company in July and October 2006.

Turner is listed on the dissolution document as the only member "designated to wind up the affairs of the company," though it's unclear whether she filed the paperwork or someone else did. The signature is illegible.

Over the weekend, Steele told ABC's This Week that his sister believed Brown Sugar was "still in existence."

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He said "her lawyers ... were telling her they were in the process of dissolving the company." He also said he would voluntarily provide documents to the FBI.

Fabian claims that Turner's company never performed the work she was paid for, which Steele's spokesman denied.

Steele "is being smeared by a convicted felon who tried and failed to get a nine-year sentence reduced. All of these allegations are completely false," Anderson said in a statement.

Turner, a pediatrician and former wife of boxer Mike Tyson, did not return a call requesting comment.

"It's insulting, the suggestion that somehow she was profiting off of the campaign," Anderson said in the interview, calling the doctor "a very accomplished individual."

"Someone like Dr. Turner would have been more than happy to pay for things out of her own pocket," he said, but couldn't because that would violate federal law.

When asked why she would perform services under Brown Sugar rather than as an individual, Anderson said, "I don't know the answer to that."

Ann Shaw, a bankruptcy attorney and Crowson's colleague, said the situation sounded "weird" but not shocking.

"My experience with small businesses is with most of them, this is the kind of thing that happens," she said.

"They don't really pay too much attention to crossing the t's and dotting the i's."

In confidential court documents obtained by The Washington Post, which first reported the allegations, Fabian also claims that Steele paid $75,000 to a law firm for work that was never performed, used state funds to pay federal campaign bills and oversaw the transfer of $600,000 in state campaign funds without authorization to do so.

Steele has said all the charges lack merit.

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