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Grand jury probes firm that was given state contract
(Santa Fe New Mexican, The Via Acquire Media NewsEdge) Dec. 16--A grand jury in Albuquerque is investigating a California financial firm that won a $1.5 million contract with the state after contributing to political action committees associated with Gov. Bill Richardson, a national financial publication reported Monday.
Bloomberg.com reported the grand jury is looking into CDR Financial Products Inc., a Beverly Hills-based firm that did work on the financing of the GRIP highway project in 2004. The New Mexico Finance Authority in 2004 chose CDR as part of a team of financial consultants to put together a bond-financing deal for GRIP, which stands for Governor Richardson's Investment Partnership.
Asked to comment on the grand jury investigation, Richardson spokesman Gilbert Gallegos responded: "The Governor's Office is aware of questions surrounding some financial transactions at the New Mexico Finance Authority. We expect any state agency that is approached with questions to cooperate with federal officials."
As reported by The Associated Press in August, CDR and its chief executive officer, David Rubin, contributed at least $110,000 to three political committees formed by Richardson.
The largest contribution, $75,000, was made by CDR in June 2004 -- a couple months after the transportation financing arrangement had won state approval -- to a PAC that Richardson established before the Democratic National Convention in Boston that year. Si Se Puede! Boston 2004 Inc. helped pay convention expenses for Richardson's staff and supporters. Richardson served as chairman of the 2004 convention.
Other companies involved in the GRIP finance team also contributed $55,000 to Richardson's convention PAC, according to an Associated Press report in 2004.
Rubin contributed $25,000 to a Richardson PAC called Moving America Forward in late October 2003 -- when the state Legislature was debating GRIP. He gave $10,000 to Richardson's re-election campaign in 2005.
A CDR spokesman told the wire service in August that the company was selected for the New Mexico contract through a competitive bidding process based on the firm's expertise. "It has nothing to do with political contributions or patronage," the spokesman said.
According to Bloomberg, two years ago, "the FBI searched CDR's offices as part of a nationwide investigation into whether banks and advisers conspired to overcharge local governments on financing deals." That investigation is ongoing, Bloomberg reported.
Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com.
To see more of The Santa Fe New Mexican, or to subscribe to the newspaper, go to http://www.santafenewmexican.com.
Copyright (c) 2008, The Santa Fe New Mexican
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