To: American Spirit who wrote (398058 ) 6/5/2003 8:04:17 AM From: JakeStraw Read Replies (1) | Respond to of 769670 Wife's Fortune Out of Kerry Campaign Fund By SHARON THEIMER Associated Press Writercustomwire.ap.org WASHINGTON (AP) -- John Kerry's campaign says the Massachusetts senator cannot legally use any of his wife's multimillion-dollar Heinz investment holdings for his presidential race, taking away a vast pool of cash some Democrats hoped would help challenge President Bush's record fund raising. Teresa Heinz Kerry's holdings have been estimated at $550 million or more, putting her among the 400 richest Americans on Forbes magazine's list last year. Under federal campaign law, assets solely under the control of Heinz Kerry, including those reported on Kerry's recent Senate disclosure form, cannot be used for the Democrat's presidential campaign, campaign spokesman Robert Gibbs said Wednesday. Bush is expected to raise a record $200 million or more for his re-election bid. Kerry raised about $7 million from January through March, the most recent period for which figures are available. Kerry reported investments valued at about $700,000 to $2.4 million. Two of his advisers, who spoke only on condition of anonymity, said Kerry has several million dollars of his own money he could tap for his race. "Senator Kerry is a man of some significant wealth who could make, if he chose, a sizable investment in his presidential campaign," Gibbs said. "I do not believe we have ever left anybody with the impression that we would be spending several hundred million dollars." The Massachusetts senator is mum about what assets he hasn't reported. He has not yet disclosed income tax returns traditionally released to the public by most presidential candidates. Kerry hopes to release the returns at some point, Gibbs said. In the past, when asked whether Kerry would tap the Heinz fortune for the race, the campaign has said it might if the couple faced personal attacks. Gibbs said the campaign's interpretation of the law precluding Kerry from using his wife's money was reached some time ago. Campaign experts said the decision not to tap his wife's fortune should erase any perception, particularly among donors, that the vast personal fortune makes Kerry a more attractive Democratic rival to the well-funded Bush. "The big impact is if he could have simply spent two or three times as much as any of his opponents on the primary that would have given him a huge advantage in a divided field," said Michael Malbin, executive director of the Washington-based Campaign Finance Institute. "That won't be his situation now." The financial disclosure form Kerry filed last month details the wealth of Heinz Kerry, the widow of Pennsylvania Sen. John Heinz III of the Heinz food dynasty. Income and assets for Teresa Heinz Kerry totaled at least $210 million, with several investments identified only as worth more than $1 million each. The report shows owns two investments with his wife: a painting worth $250,001 to $500,000 and bank accounts worth $50,001 to $100,000. His holdings include a variety of investments in three trusts he inherited after his mother's death last year. Federal Election Commission officials said they couldn't make a formal ruling unless they get a request, but their initial reading of the law suggests that Kerry couldn't use his wife's assets for his presidential race. Under federal rules, a spouse has the same $2,000 individual limit as other campaign contributors. Heinz Kerry cannot transfer assets to Kerry to influence a federal election. In most cases, Kerry could use half the value of any jointly held property on the race. One exception is joint bank accounts, which the FEC has traditionally let candidates tap in their entirety. The Senate disclosure form doesn't list any of the homes Heinz Kerry or Kerry own. Heinz Kerry has said she owns at least four - in Pittsburgh, Nantucket, Mass., the Georgetown section of Washington, and Idaho. Kerry and Heinz Kerry own at least one house together: a $7 million residence in Boston. An Associated Press review of property records did not identify any residences that listed Kerry as sole owner. Gibbs declined to comment on the couple's real estate or other possessions, including whether any of Heinz Kerry's property has been put in Kerry's name. Despite the restrictions, Heinz Kerry's wealth still could find its way into the race. She could give a large sum to an outside group that could spend the money on Kerry's behalf; the group's expenditure would have to be independent of Kerry's campaign. She also could pay for ads if she feels she has been attacked in the race.