A woman charged with attempting to extort $1 million from the Muscatine-based Iowans for Tax Relief says she was “set up” by the group — with the help of law enforcement — to prevent her from filing a formal complaint that the organization made illegal campaign contributions.

Although Mary Kathryn Moravek of Mechanicsville stands by her allegations that Iowans for Tax Relief laundered money through its lobbyist, the director of the state panel overseeing campaign finance said Friday he has received no complaint and, at this time, sees no reason for an investigation.

“It’s not as if Iowans for Tax Relief has been shy about showing how much money it gives … about showing its political muscle,” said Charlie Smithson of the Iowa Ethics and Campaign Disclosure Board.

Moravek, 51, who was charged with extortion Tuesday by Muscatine County authorities, was accused of an earlier attempt in Cedar County, but authorities have not filed charges.

Extortion is a Class D felony punishable by up to five years in prison and a $7,500 fine.

Moravek claims to have witnessed former Iowans for Tax Relief lobbyist Cloyd “Robbie” Robinson of Cedar Rapids writing checks to candidates and cashing checks from Iowans for Tax Relief for the same amounts. The criminal complaint alleges she asked Iowans for Tax Relief and its co-founder, David Stanley, for $1 million to prevent her from filing a complaint with the campaign ethics board.

Robinson, a former Democratic legislator, called her claim “dead wrong.”

Moravek was arrested Tuesday after meeting with Iowans for Tax Relief Vice Chairman Robert Solt and an undercover sheriff’s deputy in a car in the parking lot of the Muscatine Holiday Inn. She expected to receive a $30,000 payment in exchange for dropping the allegations of wrongful conduct, according to Muscatine County Attorney Gary Allison.

“Oh yes, I thought we had an agreement,” Moravek said Friday.

She and Solt signed an agreement that had been drafted with the assistance of county attorney’s office, according to Assistant County Attorney Alan Ostergren, who confirmed Moravek’s account of her arrest.

The agreement called for her dropping her allegations in exchange for $30,000 and Iowans for Tax Relief agreeing not to “come after me about my allegations,” she said.

Then, “handcuffs,” Moravek said. “They told me I was under arrest and it seemed like there were 10 squad cars there.”

She was taken to the Muscatine County jail and later that day posted a $5,000 surety bond. She has a court appearance scheduled Nov. 17.

Iowans for Tax Relief was not her first intended victim, according to Mary Oberbreckling of Mechanicsville.

After attending a late October auction at a Mechanicsville school the Oberbrecklings bought and planned to demolish, Moravek wrote letters to the couple and auctioneer Paul Glenn alleging violations of handicapped accessibility requirements. In the handwritten letters, Moravek threatened to “make it hard” on them if they did not “appease” her.

The letters were turned over to Sheriff Warren Wethington, who said the Cedar County attorney chose not to file charges because Moravek did not specifically ask for money.

Moravek said they misunderstood her intentions.

“I’m on a commission that helps people with disabilities,” she said. “I stand up for that. That’s my job.” Her two-year appointment to the commission expires June 30, 2010.

Moravek has several misdemeanors on her record, but Ostergren said he is unaware of any other attempts to extort money.