FRANKFURT, Ky. -- Testifying yesterday in the federal extortion trial of the husband of former Kentucky Gov. Martha Layne Collins, the president of Donaldson, Lufkin & Jenrette Securities Corp. said that his firm partially reimbursed employees who had made investments in horse partnerships sold by Bill Collins.

Bill Collins, the governor's husband, was charged in July 1992 with one count of extortion for allegedly forcing Donaldson Lufkin and Cranston Securities to ante up more than $1 million in campaign contributions so the firms could win underwriting contracts. Collins is also charged with breaking federal tax laws. No other persons have been charged.

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