Secretary of State Contributions Investigated

Secretary of State Kevin Shelley says he's "shocked and mystified" by reports that more than 200-thousand dollars contributed to his 2002 campaign may have violated state or federal laws.

Shelley says he didn't have any reason to be suspicious of the contributions because they were raised by his friend, Julie Lee, a San Francisco real estate broker.

Earlier this month, the Chronicle reported that five donors each gave 25-thousand-dollar contributions to Shelley's campaign around the time that they received payments of similar amounts from the San Francisco Neighbors Resource Center, a nonprofit group run by Lee.

Shelley has since returned the 125-thousand dollars to the state and put another 80-thousand dollars in donations in escrow.

State and federal officials are investigating the suspect contributions.

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