By MATT VOLZ

Associated Press

HELENA, Mont. (AP) - Campaign finance records show Montana's Republican U.S. Senate candidate used $10,000 in donations earmarked for past campaign debt to instead boost his 2016 campaign for state auditor.

After he took office, Matt Rosendale approved a settlement dropping penalties against a Billings bail bond company that was run by the same people who donated the $10,000.

Friedel LLC had faced $3,500 in fines for hiding fees and charging illegal interest rates following an investigation completed before Rosendale's tenure.

In October 2016, four Friedel family members donated $10,000 to settle Rosendale's 2014 U.S. House campaign debt. Rosendale then loaned his state auditor campaign that same amount.

Rosendale declined to be interviewed Tuesday. Spokesman Kyle Schmauch says Rosendale was not involved in settlement negotiations and the Friedel case was properly handled.

The settlement was first reported by The Montana Free Press.

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