Front Page  news  metro

Wednesday, December 12, 2007

Ex-Treasurer Says Broker Bribed Him

By Mike Gallagher
Copyright © 2007 Albuquerque Journal; Journal Investigative Reporter
    Former state Treasurer Michael Montoya said he didn't want free trips to Las Vegas or to baseball games in St. Louis from brokers doing business with his office.
    He wanted cash.
    Montoya continued his testimony Tuesday in a Securities Exchange Commission hearing that could strip local broker and political insider Guy Riordan of his ability to work in the securities industry.
    Riordan taped about 19 conversations he had with Montoya during Montoya's two terms as state Treasurer. In one tape introduced into evidence, Riordan promised to buy Montoya champagne.
    Montoya replied he wanted a "green tree."
    In testimony Tuesday, Montoya said he wanted money from Riordan in exchange for the state's business.
    "I wanted cash," Montoya testified. "I wanted to stress that."
    He said Riordan was "always coming up with things. Trips to Vegas, to St. Louis to see Mark McGwire play. Bottles of champagne. I don't drink champagne."
    He testified that he took one free trip to Las Vegas courtesy of Riordan.
    Montoya is scheduled to start serving a 40-month sentence in federal prison for his part in the state Treasurer's office corruption scandal.
    Riordan was never charged in the federal criminal case but his name came up often. Riordan has denied any wrongdoing and is fighting charges brought by the SEC Enforcement Division that he bribed Montoya.
    Why Riordan taped some of his conversations with Montoya has not been answered— and may only be answered if Riordan testifies.
    Administrative Law Judge Brenda P. Murray ruled that Riordan will be allowed to testify if he chooses, despite asserting his Fifth Amendment right against self-incrimination when his sworn testimony was taken earlier in the case.
    Riordan asserted his constitutional right during questioning about whether he paid bribes to Montoya during a deposition taken as part of the SEC inquiry earlier this year.
    Riordan's attorneys, Robert Gorence and Timothy Padilla, said they expect Riordan to testify.
    Gorence and Padilla claim Montoya fabricated the charges because Riordan ruined Montoya's plans to keep receiving kickbacks after he left office in 2002.
    In other testimony, an expert witness for the SEC, James McKinney of Chicago, testified that Riordan was allowed to make bids hours after competitors.
    McKinney said other brokers were at a disadvantage and that various gimmicks were used to give Riordan an edge in the bids.
    Riordan's attorneys are also seeking to have Murray throw out many of the civil charges against Riordan because almost all of the bribe allegations are more than 5 years old and past the statute of limitations.
    Murray declined to rule on that request until the completion of the hearing that could continue into Thursday.
    Riordan was a major contributor to Gov. Bill Richardson and Richardson appointed him to the state Game Commission.
    After Montoya testified in the trial of former Treasurer Robert Vigil that Riordan paid bribes to Montoya for state business, Richardson donated Riordan's campaign contributions to charity and fired him from the Game Commission.