{"id":77751,"date":"2015-08-24T19:14:27","date_gmt":"2015-08-25T01:14:27","guid":{"rendered":"http:\/\/www.nmpolitics.net\/index\/?p=77751"},"modified":"2015-08-26T09:34:07","modified_gmt":"2015-08-26T15:34:07","slug":"docs-may-reveal-potential-keller-conflict-on-state-fair-lease","status":"publish","type":"post","link":"https:\/\/nmpolitics.net\/index\/2015\/08\/docs-may-reveal-potential-keller-conflict-on-state-fair-lease\/","title":{"rendered":"Docs may reveal potential Keller conflict on state fair lease"},"content":{"rendered":"<p>As a state senator, Tim Keller repeatedly criticized the Martinez Administration\u2019s awarding of a 25-year lease to <a href=\"http:\/\/abqdowns.com\/\" target=\"_blank\">The Downs at Albuquerque<\/a> to operate a casino and racetrack at the state fair grounds.<\/p>\n<div id=\"attachment_72252\"  class=\"wp-caption module image alignleft\" style=\"max-width: 336px;\"><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-72252\" src=\"http:\/\/www.nmpolitics.net\/index\/wp-content\/uploads\/2015\/08\/Keller-Tim-336x211.jpg\" alt=\"Tim Keller\" width=\"336\" height=\"211\" srcset=\"https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/08\/Keller-Tim-336x211.jpg 336w, https:\/\/nmpolitics.net\/index\/wp-content\/uploads\/2015\/08\/Keller-Tim.jpg 590w\" sizes=\"auto, (max-width: 336px) 100vw, 336px\" \/><\/a><p class=\"wp-media-credit\">Courtesy photo<\/p><p class=\"wp-caption-text\">Tim Keller<\/p><\/div>\n<p>Keller, a Democrat who is now the state auditor, accused Republican Gov. Susana Martinez of <a href=\"https:\/\/www.youtube.com\/watch?v=jVvO8e9PcSw\" target=\"_blank\">pay-to-play<\/a> related to The Downs deal.<\/p>\n<p>If documents provided to NMPolitics.net by a former colleague of Keller are to be believed, Keller may have had his own potential conflict of interest related to the state fair lease that he never disclosed to the public \u2013 and even denied existed.<\/p>\n<p>N.M. state legislators aren\u2019t paid and many have other jobs. While he was a senator, Keller <a href=\"https:\/\/www.facebook.com\/tim.keller.79462\/about?section=education&amp;pnref=about\" target=\"_blank\">worked for Blue Stone Strategy Group<\/a>, a California company that advises tribal communities on issues including economic development and governance.<\/p>\n<p>Keller has said more than once that Laguna Pueblo, whose Laguna Development Corp. was the losing bidder for the state fair contract, was not a client.<\/p>\n<p>\u201cThey\u2019re not a client of mine, nor do any of my clients have any even remotely vested interest in the whole thing,\u201d Keller told journalist Rob Nikolewski <a href=\"https:\/\/www.youtube.com\/watch?v=zvxkOrvJqls\" target=\"_blank\">in November 2011<\/a>.<\/p>\n<aside class=\"module align-left half type-aside\">\n<h3>What Keller has said<\/h3>\n<p>Here\u2019s a transcript of the question journalist Rob Nikolewski asked Keller in 2011 and Keller\u2019s response:<\/p>\n<p><strong>Nikolewski:<\/strong> \u201cThe state Republican Party accused you of being, uh, having Laguna Pueblo as a client of yours. What\u2019s the story there? Is there a story?\u201d<\/p>\n<p><strong>Keller:<\/strong> \u201cYou know they did. I feel like they were really scraping. I don\u2019t know why a political party would actually get involved in something like this anyway. But they\u2019re not a client of mine, nor do any of my clients have any even remotely vested interest in the whole thing. Who does care about this is my constituents. You know, I represent the area of the fairgrounds and I have now gone against two governors on this issue, asking for a redesign of the state fairgrounds and some investment there. And, you know, both times the Downs seemed to have, has had a lot more sway on the Fourth Floor. And so, for me, I\u2019ve been consistent on this issue throughout it. You know, I felt that was a real stretch, sort of a cheap shot. I\u2019m not sure what really drove them to be so concerned, that they\u2019d have to do that.\u201d<\/p>\n<p>Watch the full interview <a href=\"https:\/\/www.youtube.com\/watch?v=zvxkOrvJqls\" target=\"_blank\">here<\/a>.<\/p>\n<\/aside>\n<p>But Laguna Pueblo and the pueblo\u2019s organization responsible for water, sewer, garbage and IT services \u2013 Laguna Utility Authority \u2013 were both clients of Blue Stone while Keller was a principal in the company, according to documents obtained by NMPolitics.net.<\/p>\n<p>If the documents are accurate, that would mean Keller\u2019s employer was working for entities tied to Laguna Development Corp. while Keller was criticizing the process that led to the Downs at Albuquerque beating Laguna Development Corp. for the lease.<\/p>\n<p>And it would mean Keller was keeping that potential conflict secret while hammering Martinez for a bidding process he said was tainted and deserving of an investigation by the attorney general.<\/p>\n<p>Keller has referred questions about specific clients to Blue Stone, whose lawyer called the company\u2019s client work \u201cconfidential and proprietary.\u201d That attorney, Matthew A. Berliner of California, didn\u2019t directly answer a question about whether Laguna Pueblo and Laguna Utility Authority were clients.<\/p>\n<p>Berliner did say Blue Stone \u201cnever had any dealings with anyone relating to casino bids or operations in New Mexico.\u201d<\/p>\n<p>\u201cAnd Blue Stone never had any conflicts or dealings with any legislative matters for any of its clients, as that is not the area of Blue Stone\u2019s expertise or work,\u201d Berliner said.<\/p>\n<p>Laguna Pueblo <a href=\"http:\/\/www.lagunapueblo-nsn.gov\/Department.aspx\" target=\"_blank\">owns<\/a> Laguna Utility Authority and Laguna Development Corp., the organization that bid unsuccessfully for the state fair lease. While some Indian gaming operations are run directly by tribal counsels, Laguna\u2019s operation is \u201cextremely autonomous\u201d \u2013 making its own decisions and only reporting to Laguna Pueblo\u2019s tribal counsel twice a year, said Skip\u00a0Sayre, chief of sales and marketing for Laguna Development Corp.<\/p>\n<p>Laguna Development Corp. was not a Blue Stone client, Sayre said. None of the documents NMPolitics.net obtained indicate otherwise.<\/p>\n<p>A spokeswoman in the State Auditor\u2019s Office, Justine Freeman, said Keller \u201calways drew a bright line between his work with tribes and his duties as a legislator.\u201d<\/p>\n<h3>The documents<\/h3>\n<p>Nikishna Polequaptewa, a Hopi activist and former senior strategist for Blue Stone, provided NMPolitics.net with the documents that raise questions about Keller\u2019s statements that Laguna Pueblo was not a client.<!--more--><\/p>\n<p>When asked if Keller was involved in Blue Stone\u2019s work for Laguna Pueblo and Laguna Utility Authority, Polequaptewa said, \u201cThat would make sense, because, to my knowledge, he handled all the projects in New Mexico\u201d during the time in question.<\/p>\n<p>Polequaptewa, who managed Blue Stone\u2019s IT needs and marketing from April to November of 2014, has his own legal troubles. Blue Stone is suing Polequaptewa, accusing him in federal court of improperly taking company trade secrets, customer information and other data when he left the company. The FBI has investigated, according to the lawsuit.<\/p>\n<p>Polequaptewa denies the allegations. In <a href=\"http:\/\/blogs.ocweekly.com\/navelgazing\/2015\/03\/nikishna_polequaptewa.php\" target=\"_blank\">a counterclaim<\/a>, he accuses Keller and some tribal officials of being <a href=\"http:\/\/www.abqjournal.com\/618665\/news\/state-auditor-keller-accused-in-california-case.html\" target=\"_blank\">\u201cimproperly paid\u201d<\/a> by Blue Stone to use their public positions to win contracts for the company. Keller, who is not a party to the lawsuit, has called the allegations <a href=\"http:\/\/www.abqjournal.com\/618665\/news\/state-auditor-keller-accused-in-california-case.html\" target=\"_blank\">\u201cbaseless.\u201d<\/a><\/p>\n<p>Polequaptewa told NMPolitics.net he has \u201cnever seen any quid pro quo\u201d involving Keller, such as appropriating state capital outlay dollars to a Blue Stone client. But he shared an internal company PowerPoint presentation on Blue Stone\u2019s work that lists \u201clawyer\/lobbyists\u201d as contacts for a number of New Mexico tribes, including Laguna Pueblo.<\/p>\n<p>\u201cThe lobbyist\u2019s job is to influence votes in the Legislature,\u201d Polequaptewa said. \u201c\u2026 The only contact we, Blue Stone, had in New Mexico was a politician \u2013 and that was Tim Keller.\u201d<\/p>\n<p>Keller was a state senator from 2009 until he became state auditor on Jan. 1 of this year. He stopped working for Blue Stone in September 2014, according to <a href=\"https:\/\/www.facebook.com\/tim.keller.79462\/about?section=education&amp;pnref=about\" target=\"_blank\">his Facebook page<\/a>.<\/p>\n<p>Polequaptewa said Keller created the PowerPoint for a Blue Stone conference held in San Diego last year. Keller was responsible for developing the materials for the training, he said.<\/p>\n<p>As evidence, Polequaptewa provided NMPolitics.net with an April 25, 2014 email sent from the address tkeller@bluestonestrategy.com to Polequaptewa\u2019s personal email address. The email\u2019s attachments include the PowerPoint and a \u201ctentative agenda\u201d for the San Diego meeting. The email is signed \u201cTim Keller \/ Blue Stone Strategy Group.\u201d<\/p>\n<aside class=\"module align-left half type-aside\">\n<h3>Blue Stone\u2019s full statement<\/h3>\n<p>Here\u2019s the full Blue Stone Strategy Group response to NMPolitics.net\u2019s questions about the documents Polequaptewa provided. The statement came from Blue Stone\u2019s attorney, Matthew A. Berliner of California:<\/p>\n<p>\u201cIt appears that the document referred to in your email was one of Blue Stone\u2019s firm wide annual internal training programs that had real and hypothetical examples. These were internal confidential documents of Blue Stone, provided illegally to you (and likely others)\u00a0by our former employee who was only at the firm for 9 months. In late 2014, Blue Stone filed suit against Mr. Polequaptewa in Federal Court in the Central District of California for, among other things, violations of the Computer Fraud and Abuse Act, Misappropriation of Trade Secrets and Breach of Contract. We aware that state and Federal authorities are investigating the former employee for violations of law related to his illegal conduct as well.\u00a0I suggest that your review the pleadings and papers filed in the Federal lawsuit, which are publically available.<\/p>\n<p>\u201cMr. Keller was a Principal at Blue Stone which was a title only, he was not an owner and was paid a flat annual salary with zero incentive and no variable comp. Mr. Keller was hired for his strong financial related expertise \u2013 Harvard MBA, and finance degree etc. Mr. Keller provided internal training from time to time and project support as assigned. He typically had two to three people above him that he reported to including the CEO, President, a VP and a few junior staff below that he managed.<\/p>\n<p>\u201cAll of Blue Stone\u2019s client work is confidential and proprietary to Blue Stone and its clients.\u00a0However, Blue Stone never had any dealings with anyone relating to casino bids or operations in New Mexico.\u00a0And Blue Stone never had any conflicts or dealings with any legislative matters for any of its clients, as that is not the area of Blue Stone\u2019s expertise or work. Blue Stone also complies with all Federal and state laws regarding the operation of its business.\u201d<\/p>\n<\/aside>\n<p>The tentative agenda states that \u201cTim K\u201d would be presenting on \u201chow Blue Stone solves client challenges.\u201d Among the bullet points to be discussed under that item was \u201cLaguna \u2013 Utility Strategy.\u201d<\/p>\n<p>Berliner, Blue Stone\u2019s attorney, said that document \u201chad real and hypothetical examples.\u201d He didn\u2019t say whether \u201cLaguna \u2013 Utility Strategy\u201d was real or hypothetical.<\/p>\n<p>Another document Polequaptewa provided lists Laguna entities as Blue Stone clients. The company worked with Laguna Pueblo in 2010 on \u201cstrategic planning facilitation,\u201d according to the list of Blue Stone projects from 2008 to April 2014.<\/p>\n<p>It was a year later, in late 2011, that Keller told journalist Nikolewski that Laguna Pueblo was \u201cnot a client of mine.\u201d<\/p>\n<p>Later, in 2013, Blue Stone worked with Laguna Utility Authority on \u201c5-year strategic roadmap development,\u201d according to the document.<\/p>\n<p>Keller\u2019s criticism of The Downs deal continued even after the document indicates that Blue Stone and the Laguna Utility Authority worked together. In 2014, Keller called for the state attorney general to <a href=\"http:\/\/www.nmtelegram.com\/2014\/02\/10\/keller-wants-ag-to-investigate-downs-deal\/\" target=\"_blank\">investigate The Downs deal<\/a>.<\/p>\n<p>The document includes no additional information about the work Blue Stone did or how much Blue Stone was paid. It doesn\u2019t indicate whether Keller was directly involved in either Laguna project.<\/p>\n<p>NMPolitics.net has been unable to verify Blue Stone\u2019s work for Laguna Pueblo and Laguna Utility Authority with a source other than Polequaptewa and the documents he provided. In addition to Berliner not confirming or denying that they were clients \u2013 or the validity of the client list provided by Polequaptewa \u2013 officials with Laguna Pueblo and the pueblo\u2019s utility organization have not responded to requests for interviews.<\/p>\n<p>Keller reiterated to NMPolitics.net in late July what he\u2019s said in the past \u2013 that Laguna Pueblo was not a client of his.<\/p>\n<p>&#8220;It\u2019s a fair question. I don\u2019t mind people asking it, because it\u2019s also easy to answer,\u201d he said.<\/p>\n<p>That was before NMPolitics.net asked about the documents Polequaptewa provided. The auditor\u2019s spokeswoman, Freeman, said Monday that Keller couldn\u2019t comment on what she called \u201cquestionable documents\u201d because he wasn\u2019t authorized by Blue Stone to discuss confidential client information.<\/p>\n<p>NMPolitics.net is withholding publication of the documents, which appear to reveal the identities of other Blue Stone clients, instead publishing only the information necessary to detail the alleged link between Laguna Pueblo and Blue Stone.<\/p>\n<p>Polequaptewa made his comments and provided the documents during interviews that began in late July. He did so on the condition that NMPolitics.net make clear that this reporter contacted him, and he only spoke with NMPolitics.net and shared documents because he has to \u201cprove that I was telling the truth through documentation\u201d in response to Keller\u2019s comments about the lawsuit in other news organizations\u2019 articles.<\/p>\n<h3>Other Laguna connections<\/h3>\n<p>When Keller first won a state Senate seat in 2008, he promised to <a href=\"http:\/\/www.nmpolitics.net\/index\/2008\/02\/two-announce-bids-for-abq-area-legislative-seats\/\" target=\"_blank\">&#8220;bring new and ethical leadership to Santa Fe&#8221;<\/a>\u00a0and defeated Shannon Robinson, a scandal-plagued incumbent.<\/p>\n<p>Keller has championed a more ethical and transparent government ever since. As a state senator he persistently proposed reforms in response to scandals that dogged two governors. Since becoming state auditor on Jan. 1 his job has been to root out fraud and waste in government.<\/p>\n<p>He\u2019s directed his most pointed criticism at Martinez.<\/p>\n<p>\u201cShe says she\u2019s tough on corruption, and then she trades a hunting trip and a lot of campaign donations for a casino license,\u201d he told Democrats\u00a0at their state convention <a href=\"https:\/\/www.youtube.com\/watch?v=jVvO8e9PcSw\" target=\"_blank\">in 2013<\/a>.<\/p>\n<p>In the Senate, Keller represented the district where the state fair grounds are located. He had been criticizing The Downs\u2019 proposal to build a new casino there <a href=\"http:\/\/www.abqjournal.com\/news\/metro\/142342488960newsmetro12-14-10.htm\" target=\"_blank\">since at least 2010<\/a>, before Martinez became governor.<\/p>\n<p>Meanwhile, NMPolitics.net discovered a couple of other connections between Keller and Laguna.<\/p>\n<p>Keller received campaign contributions from Laguna Development Corp.; one of its lobbyists; and the chair of its board, Debra Haaland, totaling around $2,500 between 2008 and 2014, according to the money-in-politics website <a href=\"http:\/\/www.followthemoney.org\/entity-details?eid=6488349&amp;default=candidate\" target=\"_blank\">FollowTheMoney.org<\/a>. That\u2019s a relatively small amount of money, and the company also gave to many other politicians.<\/p>\n<p>Keller endorsed Haaland, a Laguna Pueblo member who currently chairs the Laguna Development Corp. <a href=\"http:\/\/www.lagunadevcorp.com\/directors-and-officers.aspx\" target=\"_blank\">Board of Directors<\/a>, when she successfully ran for chair of the Democratic Party of New Mexico in late 2014 and early 2015.<\/p>\n<p>\u201cI\u2019m proud to stand with Deb Haaland today as she begins this journey,\u201d Keller said in <a href=\"http:\/\/indiancountrytodaymedianetwork.com\/2014\/12\/13\/debra-haaland-announces-bid-nm-party-chair-158280\" target=\"_blank\">a December 2014 news release<\/a>. \u201cDeb is as fantastic a leader as she is a person, and I know she will fight for Democratic values across our state.\u201d<\/p>\n<p>Weeks before that, Keller and Haaland were among a handful of Democrats running for statewide offices in the November 2014 election. While Keller was elected auditor, Haaland lost her bid to become lieutenant governor.<\/p>\n<p>Haaland told NMPolitics.net she has never, in her position with Laguna Development Corp. or any other entity, worked with Keller in his position with Blue Stone or any other business entity to which he was tied.<\/p>\n<p>Haaland was not Laguna Development Corp.\u2019s board chair when the company bid on the state fair lease in 2011. She said she joined the board in 2010 and became chair in 2013.<\/p>\n<p>When asked if any of the various Laguna Pueblo entities had been Blue Stone clients, Haaland referred NMPolitics.net to those entities for comment. \u201cI don\u2019t know who the pueblo does business with,\u201d she said about Laguna Pueblo.<\/p>\n<p><em>This article has been updated to clarify that Haaland ran for chair of the Democratic Party of New Mexico in late 2014 and early 2015.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>State Auditor Tim Keller may have had a potential conflict of interest related to the 2011 bidding process for the state fair lease that he never disclosed to the public \u2013 and even denied existed.<\/p>\n","protected":false},"author":1,"featured_media":72252,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[709,107,1189],"class_list":["post-77751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-native-americans","tag-roundhouse","tag-tim-keller"],"_links":{"self":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/77751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/comments?post=77751"}],"version-history":[{"count":0,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/posts\/77751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media\/72252"}],"wp:attachment":[{"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/media?parent=77751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/categories?post=77751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nmpolitics.net\/index\/wp-json\/wp\/v2\/tags?post=77751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}