'06 Minn. AG settlement terms draws auditor's eye
by The Associated Press

ST. PAUL -- A 2006 lawsuit settlement between former Minnesota Attorney General Mike Hatch and a credit card company has gotten new scrutiny because of its creative terms.

Legislative Auditor Jim Nobles has questioned Hatch and his successor, fellow Democrat Lori Swanson, over the deal with Capital One Bank. The sides settled out of court for one dollar less than an amount that would have triggered automatic payment to the state treasury.

Instead, the $749,999 settlement was split three ways, and two-thirds went to nonprofit groups. One recipient was a community action group called ACORN.

ACORN's political action committee _ which is distinct from its community work _ endorsed Hatch's run for governor in 2006.

Nobles says he hasn't found anything illegal in the court-approved settlement. Hatch denies any relationship between the settlement and his political campaigns.

Swanson was a top lieutenant to Hatch prior to taking over the office in 2007.