AP: Bill Richardson Cleared in Fed's Probe
New Mexico Gov. Bill Richardson and former high-ranking members of his administration won't be criminally charged in a yearlong federal investigation into pay-to-play allegations involving one of the Democratic governor's large political donors, someone familiar with the case said.
The decision not to pursue indictments was made by top Justice Department officials, according to a person familiar with the investigation, who asked not to be identified because federal officials had not disclosed results of the probe.
"It's over. There's nothing. It was killed in Washington," the person told The Associated Press.
A federal grand jury began an investigation in 2008 into a possible pay-to-play scheme in which lucrative work on state bond deals went to a Richardson donor. The federal probe derailed Richardson's appointment as commerce secretary in President Obama's administration.
Richardson withdrew his nomination in January, saying the investigation would have delayed his confirmation although he said he expected to be cleared.
Richardson and members of his staff traveled to Cuba this week for a trade mission. Richardson spokesman Gilbert Gallegos didn't immediately respond to e-mail messages seeking confirmation that no charges were expected from the federal investigation.
A spokesman for the U.S. Attorney's office in Albuquerque said he had no information about the Justice Department's decision and couldn't comment.
Federal investigators reviewed whether political contributions influenced the selection of California-based CDR Financial Products as an adviser on state transportation bond transactions, and whether Richardson's former chief of staff, David Contarino, played a role in the hiring of CDR.
Prosecutors also subpoenaed records of another former Richardson aide, David Harris, and one of the governor's close political advisers, Michael Stratton.
Harris served as Richardson's deputy chief of staff and then became executive director of the New Mexico Finance Authority, which selected CDR for the bond financing work. Stratton, a Denver-based political consultant, served as a senior adviser to Richardson's 2008 presidential campaign and was a consultant to CDR and another financial firm when the Finance Authority put together the bond deals in 2004.
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 in 2003-2005. The largest of those contributions, $75,000, was made less than a week before CDR was selected in June 2004 by the Finance Authority to handle the reinvestment of idle bond proceeds. The firm earned $443,000 in fees for its reinvestment work.
CDR received more than $1 million in fees in May 2004 for serving as a financial adviser on interest rate swaps for the transportation bond issues and as the manager of bond proceeds held in escrow.
The bonds financed a $1.6 billion state transportation program that was called GRIP - Gov. Richardson's Investment Partnership. The Legislature approved the transportation plan, which included the governor's commuter rail proposal, in the fall of 2003 during a special session.
The Finance Authority is a quasi-public agency that issues bonds and helps develop low-cost financing for state and local projects. The governor indirectly controls the authority because its 12-member board is made up mostly of executive branch department administrators and gubernatorial appointees.
© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The decision not to pursue indictments was made by top Justice Department officials, according to a person familiar with the investigation, who asked not to be identified because federal officials had not disclosed results of the probe.
"It's over. There's nothing. It was killed in Washington," the person told The Associated Press.
A federal grand jury began an investigation in 2008 into a possible pay-to-play scheme in which lucrative work on state bond deals went to a Richardson donor. The federal probe derailed Richardson's appointment as commerce secretary in President Obama's administration.
Richardson withdrew his nomination in January, saying the investigation would have delayed his confirmation although he said he expected to be cleared.
Richardson and members of his staff traveled to Cuba this week for a trade mission. Richardson spokesman Gilbert Gallegos didn't immediately respond to e-mail messages seeking confirmation that no charges were expected from the federal investigation.
A spokesman for the U.S. Attorney's office in Albuquerque said he had no information about the Justice Department's decision and couldn't comment.
Federal investigators reviewed whether political contributions influenced the selection of California-based CDR Financial Products as an adviser on state transportation bond transactions, and whether Richardson's former chief of staff, David Contarino, played a role in the hiring of CDR.
Prosecutors also subpoenaed records of another former Richardson aide, David Harris, and one of the governor's close political advisers, Michael Stratton.
Harris served as Richardson's deputy chief of staff and then became executive director of the New Mexico Finance Authority, which selected CDR for the bond financing work. Stratton, a Denver-based political consultant, served as a senior adviser to Richardson's 2008 presidential campaign and was a consultant to CDR and another financial firm when the Finance Authority put together the bond deals in 2004.
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 in 2003-2005. The largest of those contributions, $75,000, was made less than a week before CDR was selected in June 2004 by the Finance Authority to handle the reinvestment of idle bond proceeds. The firm earned $443,000 in fees for its reinvestment work.
CDR received more than $1 million in fees in May 2004 for serving as a financial adviser on interest rate swaps for the transportation bond issues and as the manager of bond proceeds held in escrow.
The bonds financed a $1.6 billion state transportation program that was called GRIP - Gov. Richardson's Investment Partnership. The Legislature approved the transportation plan, which included the governor's commuter rail proposal, in the fall of 2003 during a special session.
The Finance Authority is a quasi-public agency that issues bonds and helps develop low-cost financing for state and local projects. The governor indirectly controls the authority because its 12-member board is made up mostly of executive branch department administrators and gubernatorial appointees.
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Most of the people that Obama appointed are , were or should be under investagation.
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BEFORE we tend to 'new business', it's customary to begin and FINISH with 'old business'!
That means, we need to investigate ALL Bush administration officials who have been linked to various criminal activities both domestic and foreign!
After this is done, THEN we should proceed to Obama's administration!
But, until it is, 'Justice' doesn't have any business proceeding to 'new business'!
Going after the Obama administration (so early, before they've barely had enough time to do anything real horrible) is like going after a 'jaywalker', while avoiding going after the Bush administration (which has years of committed felony violations accrued) is like refusing to bring to justice a serial killer!
I don't entirely disagree with you, I just belief you've got your priorities backward!
With this Tyrant 'Obama', plotting to take
our Rights and Freedoms. Days off are few.
I've asked you this DOZENS of times, and you've NEVER replied - which "rights and freedoms" are going to be taken away?
Most of the people that Obama appointed are , were or should be under investagation.
Brilliant plan you've got there Sherlock.
"Investigate them whether they did something or not!"
And you'll be the first one to cry and complain about the waste of money when the multi-BILLION dollar bill comes in to pay for those investigations.
It's like the $55 MILLION dollar investigation that the republicans launched against Clinton, because a handful of investors lost $255,000 in the Whitewater deal, that Clinton HIMSELF lost money on.
84% of republicans polled say Ted Kennedy was the greatest senator.
86% of all voters agree that Bush and Cheney should be prosecuted.
79% agree that Karl Rove committed crimes.
How do you like those numbers, majesty?
Most of the people that Obama appointed are , were or should be under investagation.******* taebok August 27, 2009 4:57 AM EDT
God you're such an ignorant tool.
Don't you ever take a day off from your paid posting job?
************************
He gets paid for that redundant krap. Surely not much.
My pay is to see Americans live in Freedom.
With this Tyrant 'Obama', plotting to take
our Rights and Freedoms. Days off are few.