Bruce Malott

There’s a new bribery allegation related to the investment scandal that rocked the administration of former Gov. Bill Richardson.

The Albuquerque Journal has the story:

“A former high-paid state investment adviser, who has admitted directing deals to benefit political players, received a $10,000 cash bribe from Anthony Correra, according to court documents filed Thursday.

“Saul Meyer, founding partner of Aldus Equity Advisors of Dallas, discussed receiving an envelope from Correra in a 2006 telephone conversation with his then-partner Matthew O’Reilly.”

A transcript of that phone conversation was filed in court Thursday as part of former Educational Retirement Board Chairman Bruce Malott’s lawsuit against Meyer, Correra and his son, and others accusing them of corruption and racketeering.

Read the full Journal article here.

This is the latest revelation in a scandal that’s been ongoing for more than two years – one that law enforcement is investigating. An audio recording that recently came out in another civil case related to the investment scandal included this quote from Saul Meyer:

“To think that Anthony (Correra) and Marc (Correra) don’t have a stranglehold over this thing is crazy. Because the governor runs this sh*t and they run the governor.”

The Correras were well-connected. Anthony was a close friend of and adviser to Richardson. His son, Marc, shared in at least $22 million in so-called “finder’s fees” paid by companies that won state investment contracts.

As for Meyer, he pleaded guilty in 2009 to felonies in New York related to an investment scandal there. In doing so, Meyer admitted to recommending ‘investments that were pushed on him by politically-connected individuals in New Mexico’ while Aldus was the investment adviser to New Mexico’s State Investment Council and Educational Retirement Board.

Richardson, of course, is apparently under investigation by at least two federal grand juries. One is focused on the investment deals.

Former Gov. Bill Richardson (Photo by Heath Haussamen)

“To think that Anthony (Correra) and Marc (Correra) don’t have a stranglehold over this thing is crazy. Because the governor runs this sh*t and they run the governor.”

That’s what New Mexico’s investment adviser, Saul Meyer, said to his company’s partners in 2006 when talking about how things work in New Mexico. He was speaking about former Gov. Bill Richardson.

The quote came from an audio recording of the 2006 Aldus Equity meeting. A transcript and the audio recording have been filed in court by Frank Foy as part of his lawsuit alleging pay to play during the Richardson years.

Confused by all of this? The Albuquerque Journal ran an article on the Meyer recording this weekend that you can read here and summed up the various investment-related lawsuits here.

You can read the transcript of the Aldus Equity meeting here (It’s Tab A, which starts on page 6), and listen to it (in five parts) here, here, here, here and here. The files were provided by Foy’s attorney.

As for Meyer, he pleaded guilty in 2009 to felonies in New York related to an investment scandal there. In doing so, Meyer admitted to recommending “investments that were pushed on him by politically-connected individuals in New Mexico” while Aldus was the investment adviser to New Mexico’s State Investment Council and Educational Retirement Board.

And the Correras? From the Journal:

“Anthony Correra was a close political and economic adviser to Gov. Bill Richardson and helped select Gary Bland as State Investment Officer. Marc Correra shared in more than $22 million in finder’s fees paid by companies that received the state investments.”

Richardson, of course, is apparently under investigation by at least two federal grand juries. One is focused on the investment deals.

1. Report details allegations against Murphy, published May 14 • Third Judicial District Judge Mike Murphy allegedly said he gave $4,000 to get appointed to the bench by then-Gov. Bill Richardson in 2006, and told several people that other judicial applicants had to give money as well, according to witness statements. • By Heath Haussamen • News • Read it again.

2. Rick Santorum and Sarah Palin – running in 2012, published Feb. 21 • Following along in my who’s running and who’s not series, I write today to tell you that former Senator Rick Santorum is running for president in 2012. And if I ever questioned whether Sarah Palin was running for president (and I did), I no longer do. • By Sarah Lenti • Commentary • Read it again.

3. Trustee’s wife also charged in firearms case, published March 14 • The wife of a Columbus village trustee indicted last week on charges related to being part of an illegal firearms trafficking ring has become the 12th person charged in the case. • By Heath Haussamen • News • Read it again.

4. Third candidate may join Cruces mayoral race, published June 9 • The dynamics in this year’s Las Cruces mayoral race may be about to change with the entry of a third candidate who would portray himself as an outsider running against two politicians. • By Heath Haussamen • News • Read it again.

5. Chief justice says he didn’t buy his job, published May 24 • A statement in a law enforcement report might imply that the N.M. Supreme Court’s chief justice may have paid a bribe in exchange for his job, but Charles W. Daniels says he did no such thing. • By Heath Haussamen • News • Read it again.

6. Gary Johnson’s zinger heard ‘round the world, published Sept. 22 • Yes, former N.M. Gov. Gary Johnson is still a presidential candidate, though most people paying marginal attention to the GOP primary probably didn’t know it – until Thursday night. • By Heath Haussamen • News • Read it again.

7. After the Giffords shooting, a crossroads, published Jan. 10 • We the people, and our politicians, political groups and media, all share some of the blame for this tragedy because we have tolerated – and some of us have even used – violent rhetoric that only serves to spread hate and division. Now we have to decide where to go from here. • By Heath Haussamen • Commentary • Read it again.

8. Meet Gov. Martinez’s ‘top adviser,’ published Feb. 14 • Some would call Jay McCleskey brilliant – the Karl Rove of New Mexico, perhaps – while others would say he is notorious and lucky. Whatever the case, he’s currently the most successful political operative in New Mexico, and hugely influential. • By Heath Haussamen • News • Read it again.

9. Citing Citizens United, PAC jumps into Cruces mayoral race, published Sept. 8 • A Rhode Island corporation is forming a political action committee that will work to elect Las Cruces mayoral candidate Michael Ray Huerta in a move that’s designed to push the limits of the U.S. Supreme Court’s ruling in the Citizens United case. • By Heath Haussamen • News • Read it again.

10. Feds probe claim of a payoff to hide Richardson affair, published Dec. 1 • A federal grand jury is investigating an accusation that former Gov. Bill Richardson had supporters pay off a woman during his 2008 presidential campaign to keep quiet about their alleged extramarital affair, the Wall Street Journal is reporting. • By Heath Haussamen • News • Read it again.

Without further ado, here’s my list of the top 10 New Mexico political stories of 2011. Feedback? Submit a comment at the end of the article.

U.S. Sen. Jeff Bingaman, right, with Sen. Tom Udall, who will replace him as the state's senior senator (Photo by Heath Haussamen)

1. Bingaman’s retirement

When he announced in February that he is retiring at the end of 2012, U.S Sen. Jeff Bingaman gave this explanation:

“At some point in any one of these jobs, you come to a point where you think you’ve made your best effort, and it’s time to move on and allow someone else to serve. That’s the point I’ve arrived at.”

For a senator who generally kept a lower national profile than his colleagues and spent more time on policy than politics, that quote revealed something profound: Bingaman spent nearly three decades in the circus that is Washington and somehow retained his humility.

Others will talk about New Mexico’s loss of seniority in the U.S. Senate with the retirements of Pete Domenici in 2008 and Bingaman next year. That’s a fair point. In fact, it’s what makes Bingaman’s retirement the top New Mexico political story of 2011. During the 110th Congress, the two were the longest-serving duo in the U.S. Senate. They were the chair and ranking member of the Senate Energy Committee and had a dramatic impact on national energy policy. They protected New Mexico’s military installations and national laboratories.

Bingaman worked successfully on other issues including conservation, immigration, and health care. He was one of the “gang of six” who worked toward compromise on health-care reform in 2009.

With Bingaman’s retirement, New Mexico will shift to having one of the shortest-serving duos in the Senate – Tom Udall and whoever wins next year’s race to replace Bingaman. But Udall spent a decade in the U.S. House before moving over to the Senate, so he’s not exactly a young’un.

The battle to replace Bingaman in the Senate will be one of the top New Mexico political stories of 2012. U.S. Rep. Martin Heinrich is giving up his House seat to run for Senate, and state Auditor Hector Balderas is running against him. Former U.S. Rep. Heather Wilson is the frontrunner for the GOP Senate nomination, but Lt. Gov. John Sanchez and Las Cruces businessman Greg Sowards are also in the mix. There are three-way primaries on both sides in the race to replace Heinrich in the House. Bingaman’s retirement creates opportunity and uncertainty in state politics.

But that’s one of next year’s top stories. For now, I’ll leave you with Bingaman’s quote about the delegation he’s leaving:

“I think we have a very capable congressional delegation, and I’m confident they can carry on.”

Simple. Kind. Unassuming. It’s exactly what you’d expect from Bingaman at the end of his career in the Senate. Whether he will admit it or not, his has been a career that made a real difference. Well done, senator. Thanks for your service.

2. Uncertain dynamics in the Roundhouse

Gov. Susana Martinez

Republicans had more influence in the Roundhouse in 2011 than they’ve had in more than eight decades. In addition to Gov. Susana Martinez taking office, the state had its first GOP secretary of state and a greater percentage of Republicans in the House than it has had in more than 80 years.

The result was largely gridlock. At the top of the list of issues on which policymakers are at a stalemate is Martinez’s push to repeal a law that allows undocumented immigrants to obtain driver’s licenses and Secretary of State Dianna Duran’s proposal to implement a voter ID law. The Legislature also quit a special session having given up hope of finding compromise on redistricting and leaving the task to the courts.

But it wasn’t just the GOP gains that led to the gridlock. Rep. Joseph Cervantes’ attempt to unseat House Speaker Ben Luján at the end of 2010 was unsuccessful, but it still weakened Luján’s power. Then came Andy Nuñez’s switch from Democrat to independent after his party refused to support Cervantes. Add to that a surprising independent streak in Democratic Rep. Sandra Jeff, and the House is nearly evenly split and entirely unpredictable.

To make things even more difficult in Santa Fe, Martinez seems to have picked up where former Gov. Bill Richardson left off as far as the executive’s relationship with the Senate – which is to say that the relationship is almost non-existent. The Senate is determined to protect its power and is oversensitive to any attempt by the executive to encroach on its authority. Martinez has little patience for those who don’t get on board with her agenda.

Meanwhile, the governor has won a few legislative victories, including implementing the assigning of letter grades to schools. But she certainly hasn’t gotten things done as quickly as she’d hoped.

As 2011 comes to an end and lawmakers prepare to gather in Santa Fe in mid-January, everyone is still trying to figure out how things are going to work. Time will tell, but 2012 promises to be interesting in Santa Fe.

District Judge Mike Murphy

3. Judicial scandal

In spite of early statements in the bribery case against District Judge Mike Murphy, prosecutors have produced no proof of widespread bribery in the judiciary. In fact, Murphy isn’t even charged with paying a bribe. His May indictment on four felony charges is based on allegations that he solicited a bribe from potential judicial applicant Beverly Singleman, told Judge Lisa Schultz to tell Singleman she needed to pay the bribe, and threatened to destroy Singleman’s reputation for telling others that he solicited a bribe from her.

Separate from that indictment, Murphy faces another felony charge for allegedly offering “several promises” to Schultz in December 2010 if she would agree to be the tie-breaking vote to make Douglas R. Driggers the chief district judge in Las Cruces.

But perhaps the most interesting aspect of the case may be all the other judges who knew about Murphy’s big mouth – his alleged statements that are the basis for the charges against him – and did little or nothing about it.

As I wrote in a May commentary, judges and lawyers are required to report potential violations of the Code of Judicial Conduct to the state’s Judicial Standards Commission. From that commentary:

“And yet, according to witness statements, Murphy told several other judges and lawyers that he made some sort of payment – possibly a campaign contribution – in exchange for his appointment to the bench, and that other judicial applicants had to do the same to get appointed.”

But who was there to stop him? Judge Lisa Schultz claims she sought advice from several other judges, including a Supreme Court justice, about what to do, but she received little help until she took the allegations against Murphy to law enforcement.

The judiciary has learned to take certain problems seriously in the years since then-District Judge John Brennan was arrested in Albuquerque in 2004 for drunken driving and cocaine possession. That incident led to a reshaping of the state’s judiciary, and Appeals Court Judge Roderick T. Kennedy wrote a column this year about help that’s available for judges who are in trouble.

In 2011, a DWI ended Appeals Court Judge Robert E. Robles’ career, and District Judge Albert S. “Pat” Murdoch quit after being charged with raping a prostitute (the case against him has been dropped for now but could be refilled).

But the tolerance for Murphy’s big mouth reveals another serious issue. When asked about it during an interview for the judgeship in 2006, Murphy promised to keep his mouth in check and was given a pass. He broke that promise repeatedly with his claims about how he got his job (and his offensive comments about gay people). The ensuing scandal – one of the worst in the history of the state’s judiciary – illustrates why his colleagues needed to report him.

Former Gov. Bill Richardson (Photo by Heath Haussamen)

4. Another Richardson investigation

Former Gov. Bill Richardson left office at the end of 2010 but didn’t stay out of the news. A federal grand jury is currently investigating an accusation that Richardson had supporters pay a woman $250,000 to keep quiet about their alleged extramarital affair while he was running for president. The details have trickled out. Read about them here, here and here.

Will Richardson or anyone close to him be indicted? Personally, I’ll believe it when I see it. This is at least the fourth time a grand jury has investigated Richardson since 2008. Two probes ended without indictments. A third into state investments is pending, as is this newest investigation.

The longer Richardson stays in the news because of criminal investigations, the more likely it becomes that history will remember him as corrupt, regardless of whether he is ever charged with or convicted of any crime.

Richardson’s only comment on the probe thus far? “Merry Christmas.”

5. Jerome Block Jr. convicted, resigns

Former Public Regulation Commissioner Jerome Block Jr.

Those who were paying attention should have known even before he was elected in 2008 that Jerome Block Jr. had no business becoming a member of the Public Regulation Commission.

Regardless, it was simply sad when Block’s career as a public official began to unravel in August and his addiction to a prescription drug was revealed. As the House began moving forward with impeachment, Block entered into a plea bargain with the attorney general on a number of charges stemming from several cases, and he resigned.

Gov. Susana Martinez, a Republican, replaced the Democrat Block with independent Doug Howe.

The AG’s deal let Block avoid prison if he completed a drug-treatment program, but Block has violated the terms of that agreement more than once and ends the year with an upcoming sentencing date and the AG seeking the maximum of 4.5 years in prison.

The question of how Block obtained drugs remains unanswered. There appears to be a law enforcement probe into some questionable e-mails Block sent that might have referenced drugs.

6. Columbus firearms smuggling case

This case didn’t receive as much media attention as those involving Block or Richardson, but it’s arguably much more serious. Here’s how I summed it up in an August column:

“New Mexico has seen lots of government corruption exposed in recent years that involves stealing money from taxpayers. But the recent weapons-smuggling case involving Columbus village officials takes government corruption to a more egregious level.

“The (now former) mayor, police chief and a city councilor were involved in a ring that helped smuggle firearms to the La Linea cartel in Mexico and also provided it with ammunition and tactical gear.

“In other words, public officials in a tiny border town in New Mexico used their jobs to help arm a cartel in Mexico, where the drug war and other lawlessness have claimed tens of thousands of lives in recent years.

“Is it a stretch to say that former Columbus Mayor Eddie Espinoza, Trustee Blas Gutierrez and Police Chief Angelo Vega enabled the killing of people in Mexico? I think not.”

An Occupy Las Cruces protester (Photo by Heath Haussamen)

7. Occupy movement

In the fall, the Occupy movement stormed Las Cruces, the rest of New Mexico, and the nation. Occupy has already had a tangible impact by forcing Bank of America and other financial institutions to back off new fees. People are protesting, boycotting, camping in public places, and in some instances clashing with police (or having police clash with them).

The movement has added another dimension to the conversation about America’s future. Budget cuts are no longer the only solution being seriously discussed.

But will Occupy have a lasting impact? The 2012 election will be telling. In the meantime, I have been asking people involved in the movement to share what they believe it’s about. You can read some of their thoughts here, here and here. And you can read this news article from a reporter who visited the original Occupy movement in New York City to try to make sense of it.

8. Duran’s voter fraud probe

Dianna Duran, the first Republican secretary of state in more than 80 years, grabbed headlines in 2011 for claiming that she had uncovered evidence of foreign nationals illegally voting in elections. But in the end, all we had was what I called a “snarky report we can’t trust.” Here’s how I summed it up:

“Duran had the opportunity, coming off her impressive and bipartisan election, to unite elections officials from both parties behind a compromise to improve election integrity and make it difficult for the naysayers in the Legislature to win the day.

“Instead, Duran has hidden evidence from county clerks and the public, attempted to deflect criticism onto the Democratic AG, taken shots at a Democratic county clerk, and, in her report, taken a tone that seems to be more about winning an argument than finding solutions.

“That’s the most unfortunate part. Though technology has helped clerks and the secretary of state make dramatic improvements to New Mexico’s voter rolls in the last 10-15 years, it’s clear there are still problems with the system. We need solutions.

“We needed Duran to lead a transparent investigation that included the county clerks – from both parties – throughout the entire process, so we could know there was evidence to back up the conclusions and that partisanship wasn’t an issue. We needed Duran to unite our state’s elections officials behind solutions so lawmakers would be pressured into acting.

“We didn’t need a snarky report we can’t trust.

“What a wasted opportunity.”

Attorney General Gary King (Photo by Heath Haussamen)

9. Criticism of Gary King

Attorney General Gary King had one of the worst years of any elected official in New Mexico in 2011. The criticism was widespread (and included me), and it covered a range of issues including allegations that his office was “ineffective” in dealing with cop discipline cases, that it trailed those responsible for Medicaid fraud recovery in almost all other states, that he thumbed his nose at campaign contribution limits, that he gave Jerome Block Jr. an overly lenient plea deal, that he was playing fast and loose with Southern New Mexico’s water, that he declined to investigate bribery allegations against a state official the feds later indicted, that his office violated the Inspection of Public Records Act, and that he had a serious conflict with a corruption case his office was prosecuting.

King has long faced criticism for his handling of corruption cases, but the condemnation of the job he’s doing was deafening in 2011. The Santa Fe New Mexican said King should consider resigning. I slammed King after he attempted to damage my credibility and intimidate me into silence by suggesting that I colluded with Republicans to deflect criticism away from the governor and onto him.

If King doesn’t change some things, the criticism will continue.

10. Redistricting

Here’s what I wrote earlier this year about the Legislature’s futile attempts to settle the issue of redistricting:

“Elected officials generally seek to preserve their own seats, even when it no longer makes sense. Groups with power seek to protect it. To top it all off, we’re living in one of the more partisan times in American history. This fight was destined to end in a stalemate.”

Fortunately, we have courts to decide things for us when our elected officials in the legislative and executive branches don’t get the job done. But does anyone think that’s an ideal situation? It costs millions of dollars and doesn’t seem all that democratic.

When she was a candidate for governor, Susana Martinez told NMPolitics.net she supports the creation of an independent redistricting commission to take the politics out of the process. What a fine idea. Let’s hope she starts actively pushing for the formation of such a body.

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Bill Richardson

Former Gov. Bill Richardson refused to comment earlier today on a pending grand jury investigation into an accusation that he had supporters pay off a woman to keep quiet about their alleged extramarital affair.

Richardson was asked about the grand jury probe by KOB-TV’s Gadi Schwartz, who ran into him at the Roundhouse in Santa Fe. Capitol Report New Mexico’s Rob Nikolewski recorded video of the encounter.

Richardson’s response when Schwartz asked if he had any comment on the probe? “Merry Christmas.” Then the former governor left the building while the reporters followed him.

Watch it here:

Schwartz snapped a photo of the governor you can see by clicking here.

For the latest on the grand jury probe, click here.

Former Gov. Bill Richardson (Photo by Heath Haussamen)

Amanda Cooper and Jimmy Daskalos appeared at federal courthouse Tuesday while grand jury was meeting

Two high-profile politicos with ties to Bill Richardson apparently testified Tuesday before a federal grand jury investigating the former governor.

From The Santa Fe New Mexican:

“A former deputy campaign manager with former Gov. Bill Richardson’s presidential campaign and an Albuquerque restaurateur and developer appeared before a federal grand jury looking into possible wrongdoing by the state’s former chief executive.

“But neither Amanda Cooper nor Jimmy Daskalos had anything to say as they entered and left the Pete V. Domenici federal courthouse Tuesday in Albuquerque.

“Cooper is the stepdaughter of U.S. Sen. Tom Udall, D-N.M., and worked as Richardson’s deputy campaign manager during his presidential run. Cooper also worked on Richardson’s 2006 re-election campaign for governor.

“Daskalos, who has owned Yanni’s, a prominent Albuquerque restaurant, with Richardson insider Nick Kapnison, was a fundraiser for the former governor.”

The Albuquerque Journal added that neither Cooper nor Daskalos would comment on the situation. Grand jury proceedings are secret.

From the Journal:

“Campaign contributors with varying degrees of business with the state during the Richardson administrations (2003-2010) have been called to testify, as have campaign officials of his bid for the 2008 Democratic presidential nomination.

“Richardson confidant Anthony Correra, who has been at the center of separate investigation into state investment business, appeared last month.”

The Albuquerque Journal first reported on the federal investigation in mid November. The Wall Street Journal later reported that Richardson’s political allies allegedly “gave $250,000 to placate a woman who was considering suing the governor in 2007, exposing their alleged extramarital affair” while he was seeking the Democratic Party’s 2008 nomination for president.

And The New York Times has reported that “a sexual harassment claim was made against Mr. Richardson around 2007 by a woman connected to state government and that a settlement was discussed with one of the former governor’s personal lawyers.” The woman, The Times reported, “complained privately in 2007 that she had felt pressured into having a sexual relationship with Mr. Richardson.”

The Times reported that the $250,000 payoff “was believed to have been wired to the woman’s lawyer from a bank in Mexico.”

Read today’s New Mexican article here and the Journal article here.

Heath Haussamen

I was on the statewide radio program News New Mexico earlier today to talk about the grand jury investigating former Gov. Bill Richardson, the Occupy movement, the 2012 election and lots more.

You can listen to me talking with Jim Spence and Michael Swickard here:

If the player doesn’t display, click here to download the audio file.

Former Gov. Bill Richardson (Photo by Heath Haussamen)

Former Gov. Bill Richardson and his wife have purchased a home in the Cape Cod area in Massachusetts for $1.67 million.

From the Cape Cod Times:

“Former New Mexico Gov. William ‘Bill’ Richardson and his wife, Barbara Flavin Richardson, paid $1.67 million for a house on Fox Pond and Strong Island Road, according to the deed recorded on Sept. 15.

“The couple secured a $675,000 mortgage from the Cape Cod Five Cents Savings Bank and purchased the 2,278-square-foot house from Gerald and Stephanie Coughlan of Wellesley. The Coughlans paid $1.6 million for the property on Nickerson Neck in 2004.

“Most of the property’s value — $1.5 million — is in the 36,200-square-foot pond-front lot, according to Chatham assessing records. The assessed value of the three-bedroom house with 4.5 bathrooms was $297,900.

“‘Gov. and Mrs. Richardson will use this home as a vacation home,’ Richardson spokesman Caitlin Wakefield emailed Friday. ‘Their primary residence will continue to be Santa Fe, N.M. Mrs. Richardson has longstanding ties in the Cape Cod area.”

Barbara Richardson grew up in Massachusetts, and met Bill Richardson when he attended high school there after moving from Mexico.

Read the full article here.

Former Gov. Bill Richardson (Photo by Heath Haussamen)

How soon the grand jury is expected to complete its work and decide whether to issue indictments isn’t known publicly

A federal grand jury is scheduled to meet next week as part of its ongoing investigation into an accusation that former Gov. Bill Richardson had supporters pay off a woman to keep quiet about their alleged extramarital affair.

The grand jury is expected to meet Tuesday in Albuquerque to hear testimony from witnesses, NMPolitics.net has learned. How soon the grand jury is expected to complete its work and decide whether to issue indictments isn’t known publicly.

The Santa Fe New Mexican was the first to report that the grand jury is expected to meet next week, but the newspaper didn’t report the specific day. The newspaper, like other news organizations including NMPolitics.net, has had a difficult time finding anyone close to the case to talk about it. From The New Mexican’s article:

“While rumors about the investigation are rampant, people with knowledge of how it is progressing are steering clear of making public pronouncements, meaning that no one is talking publicly about the inquiry.

“Defense lawyers representing those believed to have already testified before a federal grand jury in Albuquerque didn’t return phone calls from The New Mexican. Neither did attorneys or a spokesperson for Richardson.

“And a spokeswoman for Kenneth Gonzales, the U.S. attorney for New Mexico, said last week that she could ‘neither confirm nor deny the existence of any grand jury investigation into alleged criminal conduct.’”

The allegations

The Albuquerque Journal first reported on the federal investigation in mid November. The Wall Street Journal later reported that Richardson’s political allies allegedly “gave $250,000 to placate a woman who was considering suing the governor in 2007, exposing their alleged extramarital affair” while he was seeking the Democratic Party’s 2008 nomination for president.

And The New York Times has reported that “a sexual harassment claim was made against Mr. Richardson around 2007 by a woman connected to state government and that a settlement was discussed with one of the former governor’s personal lawyers.” The woman, The Times reported, “complained privately in 2007 that she had felt pressured into having a sexual relationship with Mr. Richardson.”

The Times reported that the $250,000 payoff “was believed to have been wired to the woman’s lawyer from a bank in Mexico.”

The woman hasn’t been named publicly. Neither have the witnesses and other potential defendants in the case, but NMPolitics.net has confirmed that Anthony Correra, a Richardson friend during his tenure as governor who has been in the news because of another scandal under investigation, was in Albuquerque in early November when the grand jury was meeting there to hear testimony in the case related to the alleged extramarital affair.

An update on the investment scandal probe

As to that other scandal in which Correra has been involved – a longstanding probe related to state investments that has already led to indictments and convictions in New York – The Wall Street Journal had an update today.

The newspaper reported that the federal investigation into the investment scandal is ongoing but authorities “have recently concentrated” on the separate investigation into the alleged payment to keep the extramarital affair secret.

From the Wall Street Journal article about the investment probe:

“A federal grand jury in Albuquerque has been looking into ‘pay to play’ complaints from former and current state officials, people familiar with the matter say. The officials contend in court filings and interviews that Mr. Richardson’s close allies steered more than $2 billion of public money into investment funds run by money managers who in turn agreed to pay millions of dollars in consulting fees to high-profile Democratic fund-raisers and other supporters of Mr. Richardson.”

The Journal also named the “key players” in that investigation:

“BILL RICHARDSON Prominent Democrat, governor of New Mexico from 2003 to 2010. Controlled the state’s investment council and pushed it to invest in private equity, hedge funds and venture-capital funds run by outside investment managers.

“ANTHONY CORRERA Former Wall Street analyst, friend and adviser to Mr. Richardson. Helped select the director of the State Investment Council and advised council members on investments. Co-hosted fund-raiser for President Barack Obama with Mr. Richardson.

“MARC CORRERA Anthony’s son. Served as treasurer of one of Mr. Richardson’s political action committees. Received millions of dollars in secret payments, designated as marketing fees, from dozens of money managers the state hired, according to civil lawsuits pending in New Mexico.

“SAUL MEYER Founder of Aldus Equity, which advised New Mexico on alternative investments. Pleaded guilty in New York in 2009 to steering pension-fund investments to managers who would pay kickbacks, and said he carried out a similar scheme in New Mexico. Awaiting sentencing.

“ALAN HEVESI Former New York State Comptroller and sole trustee of a state pension fund. Sentenced to one to four years in prison in April for official misconduct, after a probe that New Mexico officials say alerted them to ‘pay-to-play’ problems at the State Investment Council.”

The Journal quoted Richardson’s “criminal defense lawyer,” Peter Schoenburg of Santa Fe, as saying the governor “was not involved in day-to-day investment decisions” and “did not know about any payments to outside advisers.” Schoenburg was quoted as saying there has been “no finding of wrongdoing on the part of Gov. Richardson.”

Heath Haussamen

I was on the radio program New Mexico News and Views this afternoon to talk about the federal investigation of former Gov. Bill Richardson, the 2012 presidential race, the weather and more.

You can listen to me talking with Dewey Moede on KKIM radio right here:

If the player doesn’t display, click here to download the audio file.