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(Tony Kurdzuk/ The Star Ledger)

A $15 million investment by New Jersey's pension system to a venture

capital fund related to Massachusetts Republican gubernatorial candidate

Charlie Baker may have violated the Garden State's anti-pay-to-play rules,

according published reports and Democrats.

And it has become an issue in that state's race for governor.

In May 2011, Baker donated $10,000 to the New Jersey Republican State Committee. He is listed as a partner in General Catalyst Partners, a venture capital fund, according to the fund's website. Seven months after Baker's donation to New Jersey Republicans, Catalyst Partners received a $25 million investment from the state of New Jersey.

As a result of Baker's affiliation with General Catalyst, the contribution, made during a Boston fundraiser headlined by Gov. Chris Christie and first reported by the website Pando Daily, may have violated New Jersey's rules governing pay to play. The rules are designed to limit contractor influence on politicians.

Today, Democratic Massachusetts Attorney General Martha Coakley, who also is running for governor, demanded the federal Securities and Exchange Commission look into the investment.

"They should look at these allegations," Coakley told the Boston Globe "They know best whether they have jurisdiction and whether they raise issues. But I would hope at least they would do a review of these allegations, to determine whether or not a further investigation is needed."

New Jersey state law bans any vendor from obtaining a contract of more than $17,500 if the vendor has donated to a candidate or committee in the last 18 months, and the State Investment Council bans its investment firms from making donations for two years prior to the contract and throughout the length of the agreement.

General Catalyst officials deny that Baker is a partner in the firm, despite his bio on the firm's website. Ofificials say his role with the company would exempt him from the pay to play restrictions.

"Like with all investments, the Division of Investments (DOI) received the required disclosure of political contributions forms from General Catalyst for all designated investment management professionals at the firm," said state treasury department spokesman Chris Santarelli. "Following the review of these forms, DOI moved forward with the investment."

Treasury spokesman Joseph Perone later added that Baker's name did not appear on the disclosure forms.

"Mr. Baker was not listed on General Catalyst’s disclosure form because, according to General Catalyst and Mr. Baker himself, he is not an investment professional with the firm," Perone said in a statement.

A spokeswoman for General Catalyst forwarded a statement from the company addressing Baker's donation and denying the firm engaged in pay to play.

"To be clear, General Catalyst did not "pay to play," the statement forwarded by spokeswoman Michelle Daubar read. "There has been no claim by

anyone that Charlie Baker was involved in persuading New Jersey to invest in a

General Catalyst fund or that anyone on the New Jersey pension board was aware

of Charlie Baker's contribution to the New Jersey Republican State Committee or

caused the pension fund to invest because of the contribution. General Catalyst

followed the law and any implication to the contrary is wrong."

Baker also addressed the issue in an interview with the Globe.

"I'm not a registered investment professional," Baker, who joined General Catalyst in March 2011 told the Globe. "I am not an employee. I pay for my health care, I don't get a W-2 tax form."

Catalyst Chief Operating Officer Bill Fitzgerald also told the Globe that Baker's role with the firm doesn't fall under the pay to play restrictions.

"We verified Charlie's positions and found that his role did not require any filings concerning the contribution,'' Fitzgerald told the Globe. "What is clear is that Charlie had no role in working with the state of New Jersey on the pension funds. It is wrong to think in that context."

But Tuesday, Baker's gubernatorial campaign acknowledged that he sits on the board of one of the firms - Oscar Insurance – where a portion of New Jersey's investment landed.

A spokesman for the campaign did not return a phone call. But spokesman Tim Buckley told the Globe that while Baker sits on the board, he had no knowledge of where the investment money in Oscar came from.

"This information does not change the underlying fact that the contribution in question is permissible because Charlie's relationship does not trigger the pay-to-play prohibitions,'' Buckley told the Globe. "Charlie and Governor Christie campaigned together in 2010, and Charlie made the contribution because of his support for the governor."

editors note: An earlier version of this story reported the investment amount as $25 million, however this afternoon, the administration clarified that the investment was actually scaled back to $15 million prior to final approval.