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Bill Richardson: February 2009

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Check out the latest episode of TPMtv, on the investigation into possible pay to play in New Mexico, which last month forced Bill Richardson to withdraw his bid to be Commerce Secretary, and has now seemingly ensnared the Democratic Governors Association.

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Topics: Barack Obama, Bill Richardson, CDR

Bill Richardson

Dem Gov Assoc Mum On Possible Subpoena In Richardson-Linked Probe

Zachary Roth | February 3, 2009, 12:53PM

The Democratic Governors Association is refusing to say whether it has been subpoenaed in connection to the federal probe of pay-to-play allegations in New Mexico which derailed Bill Richardson's bid to be Commerce Secretary.

Asked whether the DGA had received a subpoena, spokesman Brian Namey responded in an email:

The DGA fully cooperates with any state or federal agency that makes legitimate requests for information. The DGA does not make statements concerning any particular investigation.

Four investment firms contributed to the DGA in 2004, around the same time those firms won lucrative contracts to manage the state's bonds, according to a report in the Albuquerque Journal today. Richardson at the time served as vice chair of the DGA, and would become chair the following year.

Last month, Bloomberg reported that investigators had subpoenaed Richardson's office for its correspondence with the DGA, in connection with the probe*.

The DGA, which has served as a key stepping-stone to national prominence for some Democrats, is currently chaired by Montana governor Brian Schweitzer. His office did not immediately respond to a request for comment.

Richardson's office has largely declined to comment on the investigation. According to reports, a former aide to Richardson, as well as a Richardson political adviser, have received subpoenas in connection with the probe.

* This sentence has been edited from an earlier version.

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Topics: Bill Richardson, Brian Schweitzer, CDR, Wall Street

CDR

Richardson-Linked Probe Eyeing Governors Association

Zachary Roth | February 3, 2009, 10:42AM

Could the federal investigation of possible pay-to-play in New Mexico be turning its focus to a crucial Democratic political organization?

The probe, which derailed Bill Richardson's bid to be Commerce Secretary, has largely focused on one investment firm, CDR Financial Products. That company won a contract from Governor Richardson's administration to help manage the state's bonds, around the same time that it contributed to two Richardson political committees, as well as to the Democratic Governors Association (DGA), of which Richardson was vice chair at the time. (He would become chair in 2005).

And now the Albuquerque Journal reports that three other firms that won contracts to manage the state's bonds also contributed to the DGA, giving almost $500,000 around the time the transportation financing plan was being developed and finalized. Those firms are J.P. Morgan Securities, UBS Bank and RBC Dain Rauscher.

The paper adds:

Some of the donations were in cash, others were "in kind" services, such as catering.

The DGA describes itself on its website as a "political organization organized to support the candidacies of Democratic gubernatorial nominees and incumbents across the nation" and as "the united voice for America's Democratic governors." It has been a key stepping-stone to national prominence for some Dems, and its current chair, Governor Brian Schweitzer of Montana, is seen as a rising star in the party.

Bloomberg recently reported that federal investigators, in addition to subpoenaing aides to Richardson and a banker with JP Morgan Chase, also asked for DGA correspondence records in connection with the probe.

The bond contract program, known as GRIP, appears to have quarterbacked by David Harris, the led the state's financing authority at the time and had previously served as Richardson's deputy chief of staff.

Reports the paper:

Harris organized the team of GRIP bond underwriters and advisers after the Legislature approved GRIP at a special session in November 2003, according to NMFA board meeting minutes.

Harris also helped plan the financing for GRIP and shepherded the transportation package through the Legislature.

Harris, who left the NMFA after the GRIP financing details were approved to become a University of New Mexico vice president, has declined comment. His lawyer says his client denies any wrongdoing.

Something tells us we haven't heard the last of this.