Denish With Obama
Top level political power players are saying the news that Governor Richardson and his former top aides will not be indicted in connection with the CDR pay-to-play case paves the way for the White House to consolidate its political power in this key presidential swing state. There is still another investigation pending that involves the Guv, but CDR was the biggie. Republican US Attorney Greg Fouratt did not convince his Justice Department bosses to get indictments in CDR and that likely means no indictments of Richardson or his staff in the second case, say political insiders we consulted. Some of them pointed to investment adviser Marc Correra as still being on the hook, but not the Guv or his aides.

Senior Alligators consulted are also betting that the President will soon name a new NM US Attorney, toughening even further the standards for political indictments. In other words, a new deck has been shuffled and Richardson again has a high hand.

The Washington Post has the lowdown on how the no indictment day came down.

Prosecutors in New Mexico sent their findings to Justice Department headquarters in Washington, where career prosecutors concluded that an indictment was not warranted...The agreement to extend the statute of limitations on the allegations had expired Wednesday and Justice Department officials had not requested more time. That signaled, the source said, that indictments were no longer a possibility.

We worked the big story with KOB-TV's Stuart Dyson. Video here. The ABQ Journal quotes from a letter written to defense lawyers by US Attorney Fouratt. The New York Times reports:

• Update: AP confirms no indictments of Guv and associates in CDR
• The Washington Post has the lowdown on how no indictment day came down
  

The News: No Indictments
It looks as though Governor Bill Richardson's year from hell is over. KRQE-TV news reported on its Wednesday 10 p.m. broadcast that neither the Governor or his former top aides--Dave Contarino or David Harris--will be subjected to federal indictments in the CDR bond case. The station cited anonymous sources in breaking the news of the conclusion of the probe that began last August. It was reported by veteran journalist Michael Herzenberg. He said there would be no formal announcement of the decision, but that "it could become known" as soon as today. My Legal Beagles say that implies that the good news for the Guv is coming from the attorneys involved in the case. A state official said in June that the CDR case was on the desk of US Attorney General Eric Holder awaiting his decision on how to proceed.
Here’s an e-mail making the rounds from ABQ Democratic State Senator Linda Lopez as she plans a formal entry into the Dem race for lieutenant governor on Sept. 5th:

We will kick-off at 9:30 am at Washington Park near Washington Middle School. It will last for one hour--ending at 10:30-ish. We will have burritos, pastries, coffee, juice and water. Agnes and Lori will work on the food.

Mariachis will be contacted by Dolores. Sylvia will arrange for the sound system. Will check to see if a hot air balloon is feasible for that morning. We will have 3 persons (groups) introduce me before I speak. I will speak for 5 minutes.

Light Guv candidates seem more plentiful than the summer monsoons. And we have no shortage of GOP Guv candidates. We blogged a couple of weeks ago of the plans of ABQ GOP State Rep. Janice Arnold-Jones to formally enter the Guv race this Sunday at 4 p.m. at the Sheraton Uptown.

That menu for Lopez’s opener sounds enticing. Wonder if Janice will match it. We don’t expect much from these politico in the food department any more. The old days of trays of goodies seem to be fading or gone. That hit home last year when we attended a rally for Big Bill’s presidential campaign in ABQ’s South Valley. They served peanuts and bottled water to keep expenses down. And then there was Republican Steve Pearce's Valley rally for his US Senate campaign where he served hot dogs. What? They were going to cook them in the ground, pull them out and hold a fake matanza?!

TED KENNEDY

Obama & Brunner
The dam that seemed to be holding up Obama administration appointments in New Mexico finally broke Tuesday, giving hope to New Mexico Democrats that the most anticipated federal appointment--that of US Attorney--will come next. But when that comes, there could be a twist. More on that later, but first the appointment action.

Gary vs. Rebecca
They say a prosecutor can indict a ham sandwich. Is former NM Secretary of State Rebecca Vigil-Giron a ham sandwich or is the 50 count indictment brought against her by a grand jury and Attorney General Gary King the real deal? The debate has raged since Vigil-Giron, who served three terms as SOS, was indicted last week.

Vigil-Giron is proclaiming her innocence, but after the charges against her were laid out in the press she was excoriated as the latest example of New Mexico gone wild when it comes to political corruption. But there is another side coming into our e-mail box. For example, here’s Lewis Kidron, a politico from Texas who asserts the indictment is riddled with holes:

The iron-clad case against Vigil-Giron, who spoke at our 2006 Texas Democratic Party convention, rests on a letter she backdated to 'cover-up" this massive money-laundering and embezzlement scheme. According to the New Mexico Independent:

...The Aug. 26, 2004, letter changed the method of payment for (media consultant Armando) Gutierrez, who with Vigil-Giron and two others, was indicted. The letter stipulated that Gutierrez would go from being paid at three hourly rates to a single, 17-percent administrative fee of the value of work his firm performed, according to the letter.

While changing a payment agreement after the fact might be stupid, it is not a felony the last time I checked, and certainly isn't something one would normally be facing 20 years in prison for. But I'm also not a state official from New Mexico...

So we've got some evidence here that she let this shady consultant "re-negotiate" his contract without following all of the rules and regs. Pretty stupid, Becky, but what are the rest of these 49 counts against her all about? There doesn't seem to be any evidence that Vigil-Giron got any money out of this massive criminal operation she was "in on.”

Vigil-Giron is the only one accused of embezzling an "unspecified" amount without any bank transactions listed to prove the accusation.

It could be that she is guilty as sin, but this whole thing looks a bit "opportunistic" on the part of Attorney General Gary King. Let's face it--if you were the NM attorney general, as corrupt as that state is, would you want the R's accusing you of "going easy" on a former state official like Vigil-Giron? Probably not.

If Vigil-Giron does not cop a plea, her trial would probably take place next year--in election season. The indictment did provide banking details on the charges against Gutierrez and lobbyist Joe Kupfer and his wife, Daisy Kupfer.

A FULL PLATE

King has his plate full. Earlier, he came with indictments in a regional housing authority scandal, including one of former State Rep. Smiley Gallegos. Also, the AG was rebuffed in his efforts to have nonprofit organizations active in last year’s legislative campaigns disclose their campaign donations and expenditures. He now says he will appeal that federal court ruling.

Insiders say King plans a re-election announcement in September. His main threat has been a primary challenge from the left based on an inactive record in going after political corruption. In 2006, King handily defeated Dem primary challengers Lemuel Martinez and Geno Zamora. A Hispanic Dem challenger is also a concern, but no names are circulating. King looks good for the Dem nomination. However, voters have placed a glass ceiling on King, rejecting him when he sought to advance the the governor’s office or the US Congress.

With the two big corruption cases he’s involved in, King’s corruption fighting record is no longer at issue, but whether he and his office are effective and competent in prosecuting corruption is still up in the air. The criticism of the Vigil-Giron indictment, the recent federal court loss on the non-profits and the undetermined outcome of the housing scandal means the verdict on Gary King’s tenure remains out. Still, a Republican getting elected attorney general is a rarity, and so far no big R names are running.

SIDEBAR ACTION

Vigil-Giron first ran and won the secretary of state’s office in 1986. Vigil-Giron was a longtime and ardent support of Bruce King, father of Gary King, who shares a political record with Rebecca. She’s the longest- ever serving secretary of state, clocking 12 years in the office. Bruce is the longest-ever serving Governor. He also served three, four year terms, the last of which was from 1991-1995.

DULY NOTED

A Legal Beagle checks in with the news that Joe and Daisy Kupfer, indicted by the AG’s grand jury, gave Gary King a $1000 campaign donation in September 2006.

Also, the AG was knocking down speculation Monday that his office has a conflict of interest in prosecuting the Vigil-Giron case because one of his lawyers involved in the Vigil-Giron case had been fired by Daisy Kupfer when she headed Attorney General Madrid's administrative services division. He said there is no need for the indictments to be quashed, but if such an allegation proved correct, he would name a special prosecutor. Wonder who that would be?

OTHER STUFF OUT THERE

Could there be more indictments that shake the New Mexico earth as we head for Election 2010? That federal pay-to-play investigation into the administration of Governor Richardson hasn’t been heard from lately. The probe turned one year old this month. The last heard was that the decision on whether to issue indictments in the case was on the desk of US Attorney General Holder. Bill recently conducted diplomacy with the North Koreans in Santa Fe, diplomacy that insiders say had to have a wink and a nod from the White House. That fueled speculation that he is unlikely to be the subject of an indictment.

Bill's former top associates--David Contarino and David Harris--have also figured prominently in that investigation conducted by Republican US Attorney Greg Fouratt. While the Legal Beagles think the portion of the probe involving them has wrapped up, there is no way of knowing for sure. The feds make no announcement when they conclude an investigation. Maybe there should be a new rule in this age of intense media coverage. Can’t the US attorney--without making any comments--simply put out a one sentence statement if and when a major probe has concluded? We’re just asking.

And then there’s the federal grand jury probe in Virginia looking into the US attorney scandal. Since new revelations came from the House Judiciary committee regarding the firing of NM US Attorney David Iglesias and others, there was open speculation in the national media that former ABQ GOP Congresswoman Heather Wilson could be subjected to an obstruction of justice indictment. A long shot? Probably. But it is hanging out there as is the question of whether the revelations have perhaps soured Heather on the possibility of seeking the 2010 GOP Guv nomination.

THE BIG PICTURE

You can look at the wave of indictments and investigations several ways. That New Mexico is rancid with political corruption and is a hopeless third-world, banana republic that will never advance economically or socially as long as the politicians are picking the cupboard clean or playing politics illegally,. Or you can argue that the various investigations show the state is getting cleaned up and most of the corruption has been ferreted out. Or you can make the case that some of those being investigated have made--that they are victims of overzealous prosecution and much of the corruption talk is just that.

We’ve said it before and so have others--political corruption alone is unlikely to be the driving issue in election 2010. But the candidates that can demonstrate ethics is having a direct impact on the state’s economic prospects may have something. The Great Recession has delivered a body blow to thousands of New Mexican households. When times are good, the antics of the politicos here often elicit a cheery derision. But when times are bad, the cheap seats get antsy and out come the rotten tomatoes. Who will they splatter? Stay tuned.

NO BLOOD

Maybe the two challengers to incumbent Mayor Marty Chavez--Republican RJ Berry and Dem Richard Romero--will let their paid media deliver the attacks on Chavez that seem needed to dislodge him from the front runner position or at least deprive him of the 40 percent of the vote needed on Oct. 6 to avoid a run-off election. Monday at a debate before the development and business community and broadcast live on KANW 89.1 FM, the challengers were content to take mild jabs at Chavez who is seeking his third term in a row and fourth overall. All three candidates came across well on the radio, but that means Chavez did not lose.

BUDGET CRISIS ACTION

Our Santa Fe insiders said last week to look for an across-the-board cut in the state budget in order to eliminate a whopping $433 million shortfall for the budget year that started July 1. And that's just what Big Bill appears to be going for as he prepares to call a special legislative session in October. You are not going to get major savings during a special by doing a diagram of the budget. Bill will do his best to control just where the cuts come, but if he doesn't come with enough of them, State Sen. John Arthur "Dr. No" Smith and company are sure to have some tips for him.

Heinrich Listens