The head of the company at the center of an investigation into allegations of pay-to-play in Gov. Bill Richardson’s administration proclaimed that he and his company have done nothing wrong in a letter posted today on his company’s Web site.
David Rubin, head of CDR Financial Products, wrote in the letter that he gives to political action committees like those formed by Bill Richardson not in exchange for state business, but because he has “been an unabashed supporter of Democratic causes and public figures, especially those like Gov. Richardson, who support a liberal, inclusive agenda.”
“It is true that I have made contributions to political causes and candidates in New Mexico — including contributions directly to Bill Richardson’s gubernatorial campaign and to organizations supporting voter registration drives and other aspects of the electoral process,” Rubin wrote. “That support was given with full compliance of state and federal laws.”
He wrote that he and his company were surprised that Richardson withdrew on Sunday his acceptance of President-elect Barack Obama’s nomination of him to be commerce secretary. He called the timing of the investigation and media coverage surrounding it unfortunate for Richardson, who he wrote is “an exceptionally able and dedicated public official, who was highly deserving of the opportunity to hold a cabinet-level position in the new Obama Administration.”
Rubin wrote that CDR “has never practiced pay-for-play, on any playing field where we do business,” and underwent “a rigorous vetting process” before being selected for the state contract.
“CDR will continue to work closely with our many government clients in developing the strongest risk controls and financing strategies they can sustain,” Rubin wrote. “And from time to time, we expect to give support to candidates and causes of our choice.”
The company earned almost $1.5 million advising the state on interest-rate swaps and other business related to $1.6 billion in bonds appropriated for a massive transportation project in 2004. Meanwhile, in 2003 and 2004, CDR gave $75,000 to Richardson’s political action committee Si Se Puede!, and Rubin gave $25,000 to Moving America Forward, another Richardson PAC.
No information released publicly has directly linked Richardson to the probe, but the investigation centers around whether staffers in Richardson’s office influenced the hiring of CDR.