Brown and his campaign engineered an arrangement whereby Maine, Massachusetts and Hawaii were induced to give his campaign a total of $25,000, while a handful of wealthy Brown backers agreed to give the state parties a total of $30,000.

Because Brown's individual donors had each given him the legal maximum, the episode raised the question of whether Brown -- a self-styled reform candidate for Sen. Lincoln D. Chafee's Senate seat -- had created a mechanism for evading the lawful limits on contributions.

Brown has said that the maneuver, though legal, created "an appearance problem," hence his decision to return the money to the three states.

Earlier in the month, Maine State Democratic chairman James Colwell, who signed a $10,000 party check to Brown's campaign at the end of last year, surprised the party by resigning after less than 18 months on the job.

Federal election laws prohibit organizations from passing on contributions in someone else's name. They also bar money exchanges that are made in order to avoid campaign donation limits on individuals.

The Hawaii Republicans issued a press release earlier in the month hinting that it might file a complaint.

"The Hawaii Democratic Party earns the distinction for one of the most convoluted campaign contribution deals in recent memory," the press release reads. "And it smells enough to demand an investigation by the Federal Elections Commission."

-- Journal Staff Writer John Mulligan contributed to this report