| SUBSCRIBE | | Why we charge |
|
|
|
Front Page
news
Wednesday, May 07, 2008
Final Defendant in Kickback Scandal Gets Suspended Sentence
By Barry Massey
Associated Press
SANTA FE — The government has closed out its final case in a corruption scandal that sent two former state treasurers to prison and sparked a campaign for ethics reforms.
Former California investment broker Kent Nelson pleaded guilty today to one count of racketeering in an agreement with state prosecutors.
State District Judge Barbara Vigil sentenced Nelson to nine years but suspended any prison time. He was placed on three years of probation.
In January, Nelson began serving a 36-month sentence in a federal prison in California and his lawyers asked the judge not to require him to serve time in a New Mexico state prison. Nelson could be released from federal prison after serving nine months to a year, the court was told.
Nelson, who lived in San Diego, had cooperated with federal authorities in their investigation of former state treasurers Michael Montoya and Robert Vigil. Both are serving federal prison sentences for their roles in what prosecutors alleged was a pay-to-play scheme involving extortion and kickbacks for state contracts and investments.
"It's clearly a fall from grace here," Nelson's lawyer, Michael Oppenheimer, told the judge.
Before the treasurer's scandal, Oppenheimer said, Nelson had no previous arrests and just one speeding ticket. Nelson grew up in Montrose, Colo., where he was a state wrestling champion and then became a star wrestler at the University of Northern Colorado.
Nelson, 43, is married with three small children — an 8-year-old son and daughters ages six and four.
"He misses his family beyond belief. His desire is to make good and be back with his family where he belongs when this is all over and to get along with his life," Oppenheimer said.
Nelson spoke little except to answer "yes" to questions from the judge. But at the end of the hearing, Nelson told the judge "thank you" and said, "I'm sorry."
Assistant Attorney General Raul Torrez had asked the judge to impose the maximum nine year sentence.
"There must be a price that is paid," said Torrez.
Nelson had pleaded guilty to a federal count of mail fraud and he testified for prosecutors in ex-treasurer Vigil's first trial in 2006.
With Nelson's cooperation, federal agents secretly taped telephone conversations and meetings between the investment broker and Vigil. In one videotape, Vigil accepted cash payments of $11,500 from Nelson.
Federal prosecutors alleged the payments were kickbacks to the treasurer in exchange for steering state business to Nelson. However, Vigil's defense contended the payments were campaign contributions.
Vigil's first federal prosecution ended in a mistrial. When retried, Vigil was convicted of one count of attempted extortion and was acquitted on 23 extortion and racketeering counts. He is serving a 37-month sentence.
Shortly after Vigil's first trial, then-Attorney General Patricia Madrid brought state charges against Nelson, Montoya and two others — Albuquerque businessman Angelo Garcia and former treasurer's office employee Leo Sandoval — based on their federal trial testimony about crimes they had participated in.
To resolve the state cases, each defendant pleaded guilty to racketeering. Sandoval's state sentence was suspended and he will avoid serving prison time if he meets the conditions of his probation.
State sentences for Montoya and Garcia are to run concurrently with their federal prison terms.
Nelson was the final defendant to be sentenced in the state's prosecution of those involved in the treasurer's office corruption scandal.
Montoya served as treasurer from 1995 through 2002, and Vigil worked as his deputy during part of Montoya's final term in office. Vigil was treasurer from 2003 until his resignation in 2005 after he had been indicted and was facing impeachment proceedings.
Copyright ©2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Albuquerque Journal Subscriber Services
Submit a news tip | Place a classified ad | Advertise Online at ABQjournal | Advertise in Albuquerque Journal print products | Subscribe to newspaper
Save & Share
Tag this Page
| 
...go to bookmarks
E-mail Story
Print Friendly
