This is the fourth federal investigation of former Gov. Bill Richardson or his administration that I’ve covered.
One ended with no charges but a strongly worded letter that the state’s procurement system had been corrupted. It did cost Richardson a position as commerce secretary under President Barack Obama.
A second investigation ended with two heavily redacted federal appeals court decisions and no charges.
A third, involving state investments, entered the federal investigation equivalent of interdimensional space where we may never hear of it again.
And now we are on No. 4, which centers on how Richardson and friends paid off a threatened civil lawsuit by a female former state employee during his presidential campaign.
The investigations have covered a range of topics and involved prosecutors of both political parties.
The one constant: Our usually loquacious two-term governor keeps his mouth shut when it comes to the feds kicking over the rocks of municipal bond road financing, state investments or campaign contributions.
The silent treatment is selective and not typical of a guy who would run over you to get to a TV camera — especially one affiliated with a national network.
Last month, Richardson was on the national scene talking about the succession of power in North Korea, but he isn’t talking about the federal grand jury investigation in New Mexico — or the allegations that led to it.
In mid-December, the Journal sent Richardson an e-mail asking a series of questions about the financial settlement with a female former state employee, reached in the fall of 2007 as Richardson prepared to seek the Democratic nomination for president.
The Journal has learned the former employee was prepared to file a civil lawsuit alleging a sexual relationship with Richardson during her state employment that she claimed was coerced.
The threatened lawsuit was settled for $250,000.
Federal grand jury proceedings are secret, but the increasing number of witnesses — many also represented by attorneys — are not bound by the grand jury secrecy.
As a result, the general scope of the investigation is widely known in legal and political communities.
We’ve reported the investigation isn’t looking into the alleged relationship itself but into the source of the money used to pay the settlement and how it might have been linked to Richardson’s short-lived presidential campaign.
We’ve sent e-mails to Richardson and his staff asking for comment and in mid-December sent him a list of specific questions.
We received no response.
At the same time, Richardson made the rounds at CBS, CNN and PBS to comment on the death of North Korean leader Kim Jong Il.
None of the national news organizations seeking Richardson’s expertise has asked him on camera about the investigation in New Mexico, although national newspapers like The New York Times and The Wall Street Journal followed up on our original story.
A few days before Christmas, Richardson was buttonholed by a local television reporter at the state Capitol and was asked about the grand jury. Richardson responded by wishing the reporter a Merry Christmas.
And Richardson hasn’t responded to the Journal’s follow up e-mail.
Our questions are the sort a reporter would ask at a press conference, if Richardson were inclined to hold one — not that asking would guarantee an answer. With more than two decades of Washington politics under his belt, Richardson knows how to ignore unwanted questions even in a public setting.
The Journal’s questions centered on how the settlement was reached, whether the appropriate state agency was notified, how the money to pay the settlement was raised, and who provided him with legal representation.
Lawsuits or threatened lawsuits arising from conduct of a state official — usually referred to as tort claims — are handled by the state’s Risk Management Division.
Impact on policy
Richardson’s silence won’t stop the reporters from bird-dogging the federal investigation. The feds are holding to their “neither confirm nor deny” policy of not commenting.
But the investigation and the events leading to it are having an impact on public policy.
Gov. Susana Martinez felt it necessary to obtain affidavits from the owners of the Downs at Albuquerque before the state Board of Finance publicly deliberated a new racino lease with Expo New Mexico.
Paul Blanchard, now a minority owner of the Downs after serving as president during Richardson’s administration, provided Martinez with an affidavit saying he was not a target of a grand jury investigation but had been contacted by federal law enforcement.
Blanchard said in a Dec. 9 affidavit, “While I do not believe that I have any relevant information, I have informed (the U.S. Attorney’s Office) that I will fully cooperate and I will voluntarily meet with law enforcement officials.”
Attached to the affidavit was an e-mail from the U.S. Attorney’s Office thanking Blanchard’s attorney for being willing to accept the grand jury subpoena by fax.
While the affidavits refer only to an investigation involving “a current or former government official,” Martinez said her administration believes that official is Richardson.
Several people familiar with aspects of the investigation have mentioned similarities to pending criminal charges against former Democratic presidential candidate John Edwards on allegations that his campaign supporters paid to shield the candidate from a public scandal.
The legal issue in the Edwards case is whether the money constituted a de facto campaign contribution made in furtherance of the candidate’s bid for federal office that would have both exceeded the contribution limits and were not reported.
Several Richardson insiders have appeared recently in the grand jury suite. None of them has had a comment for reporters, and no one would comment on whether he or she testified.
Among them:
♦ Amanda Cooper, a veteran manager of New Mexico political campaigns, also served as finance director for Richardson’s bid for the Democratic presidential nomination. She also oversaw Richardson’s political action committee, Moving America Forward.
♦ Albuquerque developer and restaurateur James Daskalos. Daskalos and his family contributed to Richardson’s campaigns and had business with the state during his administration.
♦ Anthony Correra, a Richardson fundraiser and unofficial adviser who has been at the center of another investigation into the handling of state investments.
According to several private attorneys familiar with the investigation of Richardson campaign contributions, witnesses have been asked about campaign travel to Iowa in late 2007 and January 2008 and donations to political action committees endorsing Richardson.
They also have been asked about structuring campaign contributions to disguise the source of the money.
Richardson spent much of 2007 raising money for his presidential run but bowed out in January 2008 after disappointing results in the New Hampshire primary and Iowa caucuses. He later endorsed Obama.
Questions
These are some of the questions the Journal submitted to the former two-term governor. They perhaps are more formal than questions that would be tossed out during a press conference, but because this investigation involves allegations concerning an elected governor’s conduct in office and as presidential candidate, we thought the public deserved some answers and that our readers would like to know that we at least asked.
♦ Were you advised or were you aware in 2007 of a potential claim or threatened litigation of any kind against you by a female former state employee?
♦ Did that claim involve allegations of a romantic relationship and/or sexual harassment?
♦ Are you aware that the complaint and/or threatened litigation was resolved in the form of a settlement in the approximate amount of $250,000 paid to the former state employee through her attorney?
♦ Was the state’s Risk Management Division of the General Services Department informed of this potential claim or threatened litigation? Why or why not?
♦ Are you aware of allegations that top campaign supporters and fundraisers of yours met at the home of Paul Blanchard in 2007 to raise money to pay the settlement of the potential claim or threatened litigation? Are you aware this meeting took place?
♦ Are you aware this money was paid to the woman to resolve a potential claim or threatened litigation against you?
♦ To what extent did you participate in discussions or the decision-making process surrounding this potential claim or threatened litigation?
♦ During the woman’s state employment, did you arrange for her promotion from a classified position to an exempt position?
UpFront is a daily front-page news and opinion column. Comment directly to Mike Gallagher at 823-3971 or mgallagher@abqjournal.com. Go to www.abqjournal.com/letters/new to submit a letter to the editor.
— This article appeared on page A1 of the Albuquerque Journal
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