Jeffrey Thompson. Photo from CSPAN.

Vincent Gray met with Jeffrey Thompson to discuss a “shadow campaign” conducted on behalf of his 2010 mayoral effort, the government alleged at a hearing to discuss a proposed plea deal for the businessman. Gray called the allegations “lies.”

Thompson pleaded guilty today to two counts of conspiracy for violating both federal and District campaign finance laws by conducting “shadow campaigns” for several local and federal candidates. Prosecutor Michael Atkinson said Thompson met with his associate Jeanne Harris and Gray campaign aide Vernon Hawkins to discuss his support for a Gray run. He wouldn’t, Atkinson said, support Gray publicly. Indeed, at a June 2010 meeting, the government alleges, Thompson met with Gray at the latter’s request. Thompson asked for Gray to refer to him as “Uncle Earl” when discussing the campaign.

In August 2010, the government alleges that Hawkins met with Thompson to ask for more than $400,000 for a get-out-the-vote effort. Thompson requested that Gray ask for it in person, so Hawkins scheduled a meeting between the two men at Harris’ apartment. Gray discussed the need for a get-out-the-vote campaign and asked Thompson to pay for it, the government alleges. Gray gave Thompson a budget, “expressed gratitude” and referred to him as “uncle.”

Thompson also says he paid former Councilmember Michael Brown $200,000 to drop out of the 2006 mayoral race and gave $40,000 to an unnamed friend of Gray’s for home improvements. Brown pleaded guilty last year to bribery charges.

Thompson’s plea deal would have him serve up to six months in prison with three years supervised release. A judge must review and accept this deal.

Gray has denied any wrongdoing. His campaign said in a statement earlier today: “Mayor Gray called for this investigation. Mayor Gray has always said he did not break any laws,”

In a tweet, Gray’s campaign manager Chuck Thies said, “Why should anyone believe Jeffrey Thompson, an admitted felon who sought to criminally alter the outcome of a presidential election?” Thies was referring to Thompson’s alleged shadow campaign conducted on behalf of a candidate believed to be Hillary Clinton. It is not alleged that she had any knowledge of the scheme.

Gray, in an interview with NBC4, said he believed all fundraising was legitimate. Thompson did ask to be called “Uncle Earl,” Gray said, because Thompson didn’t want then mayor Adrian Fenty to know he was working for another campaign.

“I was not involved,” Gray said.