Michael Matsumoto, president of SSFM International Inc., is accused of funneling money to Harris under false names to circumvent state campaign contribution limits.

His attorney, Howard Luke, said he is still negotiating a plea bargain with prosecutors but strongly disagreed with the felony charge, for money laundering.

"The not guilty plea says it all," Luke said today after Matsumoto's arraignment at Circuit Court.

Matsumoto faces a maximum penalty of 10 years in prison and a $25,000 fine if convicted of the felony. He is also charged with a misdemeanor for the alleged false name donations. A trial is set for the week of Feb. 24.

Luke has indicated that he is seeking a deal that would avoid prison time for Matsumoto, who would agree to testify in related court proceedings if necessary.

SSFM is among the state's five largest engineering companies, and is a major city and state contractor. Matsumoto, 57, is the first person to be criminally charged in an ongoing investigation of the Harris campaign and the awarding of city contracts by his administration.

Three other top SSFM employees and the wife of a fourth are also charged with misdemeanors for false name contributions. At least two of them are scheduled to be arraigned tomorrow.

Deputy City Prosecutor Randal Lee said this week that officials from other companies would likely soon face charges similar to Matsumoto's. He would not say whether Harris or officials from his campaign could be charged.

Defense attorneys repeatedly have said that neither Harris nor the campaign engaged in illegal activity, and that no contracts were awarded in exchange for political donations.

The probe began in January after the state Campaign Spending Commission found what it believed was evidence that Harris' campaign had falsified contribution reports to evade the legal contribution limit of $4,000 for a single donor.