Bill Fletcher, the CEO of Fletcher Rowley Chao Riddle, Inc., issued the following statement on Monday afternoon:
"As of today, FRCR, Inc. has resigned from Tim Mahoney’s campaign and permanently ended our relationship with him.
"According to ABC News, Tim Mahoney apparently included our company in a secret legal settlement without the knowledge of our firm. Our firm did not agree to any legal settlement.
"If these allegations are true Tim Mahoney's actions are unacceptable and not in line with FCRC's business ethics."
FCRC lists a number of prominent Democrats as clients, including one-time presidential hopeful Wesley Clark and a collection of conservative House members.
According to ABC News, Mahoney paid FRCR to employ his former aide as part of a secret legal settlement.