Related: Bill Richardson Blows Off Corruption Probe
"Gov. Richardson won’t face charges; US attorney ends pay-to-play probe" by Barry Massey, Associated Press | August 29, 2009
SANTA FE - New Mexico’s top federal prosecutor confirmed yesterday that no charges will be brought against Governor Bill Richardson and his former top aides after a probe of an alleged pay-to-play scheme prompted him to withdraw his nomination as President Obama’s commerce secretary.
But US Attorney Greg Fouratt said the decision not to bring charges “is not to be interpreted as an exoneration of any party’s conduct.’’
In a letter sent to defense attorneys, Fouratt said a yearlong federal investigation “revealed that pressure from the governor’s office resulted in the corruption of the procurement process’’ so that state bond deal work went to a Richardson political donor in 2004.
At a news conference in Havana, where he was wrapping up a weeklong trade mission, Richardson refused to comment on the Justice Department investigation, saying only “I’m not talking about that.’’
Richardson spokesman Gilbert Gallegos said in a statement yesterday that Fouratt’s letter “is wrong on the facts and appears to be nothing more than sour grapes.’’ On Thursday, before seeing Fouratt’s letter, Gallegos had said Richardson was “gratified that this yearlong investigation has ended with the vindication of his administration.’’
The decision not to seek indictments was made by Justice Department officials in Washington, according to two people familiar with the case who spoke on condition of anonymity because they were not authorized to comment publicly about the case.
However, Attorney General Eric Holder was not involved in the decision to end the case, according to a Justice Department official, also speaking on condition of anonymity.
Fouratt didn’t return telephone messages seeking further comment.
Joseph diGenova, a Republican and former US attorney during the Reagan administration, called Fouratt’s letter “stupid’’ because it makes allegations of corruption after the case is over.
“That letter is an outrage and the US attorney who wrote it should be fired. The case is closed. If he had charges, bring them. Otherwise, he should shut up. He’s being a politician now, not a prosecutor,’’ diGenova said.
Richardson, a Democrat, took office as governor in 2003, having served as a congressman from New Mexico, a roving diplomatic troubleshooter, and as President Bill Clinton’s energy secretary and UN ambassador.
The US attorney’s office in New Mexico began an investigation last year into the hiring of a Richardson political donor, Beverly Hills-based CDR Financial Products Inc., as a financial adviser on state transportation bond deals.
The state work generated almost $1.5 million in fees for CDR in 2004-2005.
CDR chief executive David Rubin and his firm contributed $110,000 to Richardson political committees from 2003 to 2005. The largest of those contributions, $75,000, was made less than a week before CDR was selected in June 2004 by the New Mexico Finance Authority to handle the reinvestment of idle bond proceeds.
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Also see: Cahill the Corrupt
