ABC News broke the story first but the N.Y. Post weighs in with the story about movie producer Stephen Bing having mob ties.

New York- A SCANDAL might be brewing in John Kerry’s camp over revelations that his biggest donor, billionaire playboy Steve Bing, has close ties to a Mafia hitman.

Bing, who inherited a $600 million real estate fortune courtesy of his grandfather, Leo Bing, has amassed over $16 million for the Democrats. He has donated $8.1 million to groups that are creating and airing anti-George Bush TV ads, according to Variety.

Now, ABC News reports that one of Bing’s close friends is Dominic Montemarano, a.k.a. Donnie Shacks, a New York-based Mafia hit man who did 12 years in prison on racketeering charges and is currently serving four years for domestic violence.

The L.A. Times has reported that Bing paid Montemarano’s legal fees the last time he had a brush with the law. ABC described Montemarano as Bing’s “business partner” and “employee” – although Bing’s lawyer, Marty Singer, says that’s not the case.

Former NYPD investigator Joe Coffey told ABC, “Donnie Shacks’ main activity was murder, no question about it. That was his main function for the Colombo family and for organized crime in general. He was one of the top hit men in the New York area.”

Bing was in Boston this week for the Democratic convention, where he was lunching with vice-presidential nominee John Edwards, when ABC confronted him with a photo of himself, Elizabeth Hurley and Montemarano. Bing refused to answer questions about his wise guy pal.

Montemarano starred in 2002’s “Night at the Golden Eagle,” a pulp fiction-style flick co-starring Natasha Lyonne about a career criminal. The picture, financed by Bing, was described by movie maven Leonard Maltin as a “grim, distasteful melodrama.”

Singer says that Bing and Montemarano are “friendly,” but insists the movie was the extent of their business dealings.

“That’s the only business relationship they have,” Singer says. “He was not an employee of Mr. Bing’s. We are demanding a retraction and correction from ABC.”

Bing, who has fathered children with Elizabeth Hurley and fellow billionaire Kirk Kerkorian’s ex-wife Lisa Bonder, has refused to discuss his donations. The Democrats have said they know nothing of the Montemarano connection.