Maryland police could lose $4.5 million if their use of a criminal database to track peaceful activists violated federal rules, a rights-advocacy group said.

State police spying on protest groups appears legal under Maryland law, legal analysts told The Washington Times. But entering an activist's name in a drug-trafficking and terror-suspect database without justification could go against federal regulations on gathering personal information and could violate Maryland privacy laws, the newspaper said.

It seems to me patently obvious they violated these (federal) regulations, said David Rocah, staff attorney for the American Civil Liberties Union of Maryland.

Police could lose all or some of its federal funds for violating the rules, he said.

Police had no immediate comment, the Times said.

State Sen. Brian Frosh, D-Bethesda, set a hearing on the scandal for Sept. 16. If the covert operation didn't violate state law, then legislation to ban such practices would be introduced, Frosh told the Times.

A Maryland Attorney General's office spokeswoman, whose office is also investigating the spying, said it didn't appear that anything illegal was done (but) we'll find out 100 percent for sure after the investigation is completed.

Police spied on groups opposed to the death penalty and the Iraq war from March 2005 to May 2006, logging more than 288 hours attending meetings and rallies, documents obtained by the ACLU said.

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