Media intensifies scrutiny of Richardson, CDR

Bill Richardson spent some time dodging and not really answering reporters’ questions today as the media continued to increase the scrutiny on the governor in the face of a criminal investigation into allegations of pay-to-play in his administration.

The New Mexico Independent’s Trip Jennings has the story on Richardson’s attempt to give the media the slip earlier today during the first and second of three public appearances that weren’t related to the federal grand jury investigation:

“The story is a little convoluted, so I’ll hit the highlights,” Jennings wrote. “The governor makes promises at the day’s first stop to take questions at the day’s second stop, which takes place in an auditorium that unbeknownst to reporters has a side door that the guv and his entourage then use to dodge the pesky scribes who chase the governor but who are left in the dust of his black SUV as it squeals away before a question is shouted out.”

Perhaps there’s a good reason Richardson didn’t want to talk: As I’ve reported, earlier in the day, Bloomberg.com identified Richardson’s former chief of staff, Dave Contarino, as a key subject of the investigation. Richardson, as his spokesman did in a statement to me earlier in the day, finally expressed his support for Contarino at the third public stop and gave a few additional comments to those pesky scribes.

The Bloomberg.com article wasn’t the only investigative report being widely discussed today. Steve Terrell of The Santa Fe New Mexican came out with an article detailing a second federal investigation of a project involving the company at the center of the alleged pay-to-play scandal, CDR Financial Products.

Last year, according to Terrell’s report, investigators subpoenaed records of bond transactions at the University of New Mexico, which has done business with CDR for years.

“Although CDR is not mentioned specifically in either of the two UNM subpoenas, a university spokeswoman confirmed the company is mentioned in some of the documents the university gave to the government, and CDR was paid $56,000 in November 2002,” Terrell’s article states. “Spokeswoman Susan McKinsey said Tuesday that it’s possible other payments were made to CDR from the UNM bond sales.”

Apparently, UNM isn’t a target in a criminal investigation. The subpoenas are part of a widespread investigation of the derivatives market.

Another investigative report related to CDR’s dealings in New Mexico and published today was authored by Associated Press reporter Barry Massey. Following a separate Bloomberg.com report about one of Richardson’s senior political advisers, Mike Stratton, lobbying the state on behalf of J.P. Morgan on the bonds under investigation, and a later revelation in Bloomberg.com’s article about Contarino that Stratton also lobbied the state on behalf of CDR, Massey dug deep into the details.

You can read the article by clicking here, but the point, as Massey boils it down, is this: “Stratton’s work for CDR is significant because as a longtime, close friend and adviser to Richardson he was in position to know about the governor’s fundraising machinery, including the committees that received contributions from CDR. Stratton also was familiar with the key players in the Richardson administration.”

Last, the Wall Street Journal was out with a report late this evening about how Richardson’s political clout at home will be affected by the scandal. The article quotes, among others, me. Check it out by clicking here.

Look for this level of media scrutiny to continue.

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