Carroll County politicians differ over the impact of the story that a company founded by state Rep. Bill Denley (R-Wakefield) was under investigation by Maine's Attorney General.

The story has quickly become the main issue in Denley's bid for the state senate in District 3 against Bud Martin (D-Center Sandwich).

In 2007 Maine's Attorney general filed a complaint against companies owned by Denley relating to a 2005 house loan the companies gave to a Maine couple. Denley told The Concord Monitor that he was not involved in the loan and the companies did not do anything wrong.

State Rep. Gene Chandler (R-Bartlett) defended Denley, while state Rep. Tom Buco (D-Conway) said the issue could hurt Denley in November.

"It's my understanding that in 25 years of mortgage business this is only complaint against him," Chandler told PolitickerNH.com. "His track record is pretty good."

Buco added, "I think it hurts him especially since it's coming out at this time when it's the biggest issue in the country."

Erik Taylor, former Republican Chairman of the Carroll County Republicans, said the story has now spread to the rest of the district. Originally the story was run by The Conway Daily Sun and Taylor thought the story would be focused in the Conway area.

"The Denley story is front page, top fold of the Carroll County Independent, so I think it is safe to say that it has gone - at least - county wide," Taylor said.

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Local pols. analyze Denley, Martin SD-3 race