Just Another Typical Day of Enchantment

Well, it looks like just another typical news day in the Land of Enchantment. Let's see, we've got a report that one former State Senator has entered prison for his part robbing New Mexicans of $4.2 million:

Former state Senate President Pro Tem Manny Aragon has begun serving his 67-month prison term in Colorado.

Then, we've got an indictment that has been two years in the making of the former executive director of Region III Housing Authority with ties to current House Speaker Ben Lujan:

In 2003 and 2004, State Investment Council bought $5 million in bonds issued by the authority to finance its mission to buy and renovate homes that are sold to low-income buyers.

Money from home sales was used by the housing authority to pay operational expenses including $875,000 that went to Gallegos as salary, retirement benefits and a loan.

The bonds defaulted, and the State Investment Council estimated losses to taxpayers at around $4 million.

Public investigations found, among other things:

• In sales of 40 properties, the money received from buyers wasn't used to pay off the bonds.
• The authority withdrew bond money to purchase five properties it already owned.
• The authority withdrew $880,000 to purchase 16 properties but paid only $280,000 for them.

A series of reports by the Journal's Thomas J. Cole also found that the housing authority allowed a state judge and an aide to House Speaker Ben Lujan, D-Santa Fe, to live rent free in authority homes.

And, to round out the headlines, it looks like the results of the investigation into Governor Richardson and his inner circle has arrived on the desk of U.S. Attorney General Eric Holder:

The New Mexico Finance Authority has been part of the federal investigation after awarding a hefty contract — with questionable procedures that included adding points and changing the initial rankings — to California-based CDR Financial Inc.

CDR, which also was awarded a sole-source, no-bid escrow contract, contributed about $100,000 to Richardson's political committees around the time of the contract awards.

The contract award in 2004 was for CDR to advise the Finance Authority on the state $1.6 billion GRIP transportation bond program.

Among the former Finance Authority officials interviewed by the FBI is former NMFA Executive Director David Harris.

After CDR won the New Mexico business in 2004, CDR officials paid for dinner and Lakers basketball tickets in Los Angeles for Harris and former Richardson chief of staff Dave Contarino.

Richardson has said no one from his administration acted improperly.

Of course, the Governor would say no one has acted improperly. This is New Mexico. As it has been noted, it's just "the way we do business." Although, I, for one, am hoping the voters have just about had enough.

Celebrating a Culture of Corruption

I didn't think it was possible, but I think we've hit a new low in New Mexico politics. Maybe it's just the fact that there have been so many corruption scandals in recent years that people have started thinking, "What's the big deal? Forget feeling shame, let's start celebrating our corruption."

Consider the startling fact that a former State Supreme Court Chief Justice and numerous other current and past elected officials think nothing of showing up for a going to jail party for one of their own. Let me repeat that: "A GOING TO JAIL PARTY!"

This is like something out of a Scorsese film. Can you imagine any other state in the nation where elected officials running for office would think nothing of showing up for a going to jail party?

Also attending the Manny farewell, according to our Senior Gators, was former Bernalillo County Commissioner Steve Gallegos, current Bernalillo County Commissioner and ABQ City Council candidate Alan Armijo; former state Senator Shannon Robinson; former Grants State Rep. Toby Michael; veteran political player Guy Riordan and another big name--former Ambassador to Spain and longtime NM politico Ed Romero.

This is beyond troubling. This is downright scary. Tomorrow, U.S. Department of Homeland Security Secretary Janet Napolitano and U.S. Attorney General Eric Holder will be in Albuquerque to unveil President Obama's 2009 National Southwest Border Counternarcotics Strategy. That's all fine and dandy, but the biggest threat to our state and homeland security right now is from within.

When the lives of corrupt politicians are being celebrated by the political establishment, our society is seriously threatened. When subpoenas after subpoenas are being issued and no one is being indicted, law and order is endangered. And, this is not simply a local problem. When political appointees think nothing of shutting down the efforts of career prosecutors fighting to protect our freedoms, we are headed down a dangerous path.

Justice Department political appointees overruled career lawyers and ended a civil complaint accusing three members of the New Black Panther Party for Self-Defense of wielding a nightstick and intimidating voters at a Philadelphia polling place last Election Day, according to documents and interviews.

Where does this leave us? The answer is that it leaves us in a very scary place. Someone needs to stand up and start questioning those in charge. If the political appointees were willing to shut down the prosecution of such an obvious case of intimidation, what will they do in New Mexico when the sitting Governor and those in his inner circle are facing indictments?

Will U.S. Attorney General Eric Holder overrule the career prosecutors who have been trying to stem the growing tide of corruption in New Mexico, or will he push to protect our homeland security by encouraging the aggressive prosecution of the elected and appointed thieves in our state government? If I was a reporter at tomorrow's press conference, I'd be asking this question. President Obama promised Change. The administration can start by rooting out corruption. That's a non-partisan issue.

Out of State Blogger Takes Issue With Reporters

You know, I'm feeling a little guilty. I had nothing to say about former Senator Manny Aragon's send off to prison. Maybe, I'm just feeling Manny Aragon fatigue. We're going on three years since I first started talking about, at the time, Manny's pending indictment.

I guess if I wasn't so thoroughly tired of the subject, I might have noticed what a blogger looking from the outside in noticed about the reporting on Manny's sentencing:

Manny Aragon was one of New Mexico’s most powerful law makers and power brokers. A former Senate president, Aragon was this week convicted and given a 67 month sentence for lining his pockets and that of his co-conspiritors with millions in fraudulently billed state contracting money.

While his “iconic” status is mentioned and his long standing position as a “Senate leader” is dutifully chronicled, his status as a Democrat doesn’t seem to make the cut of a large portion of the stories on his sentencing. This is a common practice of the Old Media. The word “Democrat” never seems to escape the editor’s cut in a story about a criminal Democrat.

The Associated Press misses the fact in two versions of the story (here and here), so does the New Mexico Independent. KRQE News 13 doesn’t mention the party of Agagon or his co-conspiritor Raul Parra. The Albuquerque Journal also skips party mention in this story of reactions to the sentencing.

I must be losing my edge.

Update: Mark Bralley sent over a note to let me know that it's wrong to criticize the AP for the decision of local media editors.

A quick review of a news outlet that used the AP story without editing it greatly would have seen that "Democrat" played prominently in the second paragraph.

My apologies to Heather Clark at the Associated Press.

We Don't Need an Ethics Commission

Why is it the left always wants a government solution to a government problem?

Eli Lee on Clearly New Mexico answers why we need an independent state ethics commission. Shorter Eli: Manny Aragon.

Indeed, are we to believe that since 1992 not one member of the Legislature has had a conflict of interest or used influence inappropriately? Must questions of misconduct rise to the level of a state or federal indictment and prosecution before they are addressed?

We have a solution - a citizen driven, a personal responsibility solution. It's called elections. Every two or four years we have an opportunity to dump the riff-raff. Regardless, of the power an individual legislator may have hold in Santa Fe, they can be beat by a superior candidate.

Of course, people have to care enough to vote. And, people who are not going to be defined by holding an elected office need to run.

A Broken Legislative Process

Last week I received an email and a phone call from a reader wanting to discuss my post regarding the government's case in the Metropolitan Courthouse Scandal. Specifically, the reader was troubled by this:

Speaking of unnamed folks in the legislature:

During the 2003 legislative session, Defendant Aragon told a legislative staff member to redirect funds that had been allocated in 1999 to two other projects to the Metropolitan Courthouse for use as additional funding on that project. Defendant Aragon's statements, which caused the redirection of the funds, made additional funds accessible to the members of the conspiracy related to the building of the Metropolitan Courthouse.

Kind of makes you wonder who is this unnamed "legislative staff member" who aided and abetted in defrauding the taxpayers? The 2003 legislative session wasn't that long ago. Is this person still working in the legislature? Are they now assisting other politicians in making "additional funds accessible" for other building conspiracies?

Unfortunately, I was in Washington D.C. with my family last week, so I didn't get to return the phone call for a frank discussion until yesterday. During which time, the reader made a very good point that is worth repeating here. Namely, that "aided and abetted in defrauding taxpayers" may be an unfair way to portray the act of the legislative staff member.

The way this process was explained to me, a legislator (or his/her staff member) asks the legislative staff to draft a change for a reauthorization or insertion of capital outlay into the capital outlay bill. This is done, and it is then voted on by the Legislator. So, charging the legislative staff member with "aiding and abetting " would make as much sense as charging the typist who typed up the change or the courier who delivered the new bill.

So, this brings us back to who has responsibility? Well, the simple answer is that the legislators who voted to approve the 340 page bill and the Governor who signed the bill without questioning the misappropriation of funds share the responsibility.

A quick search of the 2003 Capital Outlay bill, H.B. 200 reveals that "Metropolitan" shows up six times within two pages on the 340 page document. First, money that had previously been appropriated to Indian Pueblo Cultural Center were appropriated to the Metropolitan Courthouse.

But, here is the really disturbing part:

Section 121. MOUNTAIN VIEW ELEMENTARY SCHOOL--CHANGE PURPOSE AND EXTEND EXPENDITURE PERIOD FOR THE METROPOLITAN COURTHOUSE IN BERNALILLO COUNTY.--The balance of proceeds from the sale of severance tax bonds appropriated to the state department of public education pursuant to Subsection T of Section 19 of Chapter 2 of Laws 1999 (1st S.S.) for educational technology at Mountain View elementary school in Albuquerque in Bernalillo county shall not be expended for the original purpose but is reauthorized and appropriated to the Bernalillo county metropolitan court for the purpose of furnishing and equipping the new metropolitan courthouse in Bernalillo county.

That's right, they took money for our kids to line their pockets. And, the kicker to all of this comes from this paragraph taken from Governor Bill Richardson's 2003 State of the State to kickoff the Legisaltive Session:

We cannot achieve our lofty economic and educational goals without first meeting our most basic needs. When I proposed my budget, I set out three basic goals: Better schools, better jobs and more money in the pockets of New Mexicans.

Well, I guess he succeeded in putting more money in the pockets of some New Mexicans.

Taking a Look at The Government's Case

On October 25, 2007, the federal government filed two document notifying their intent to introduce evidence in the Metropolitan Courthouse kickback scandal. If you take a look at the filing, what is most interesting is not who is named, but who is not named as a "co-conspirator."

For example, despite the fact that lobbyists are often portrayed and perceived as evil and corrupting influences in the "wholesome" legislative process, the filing tells a different tale:

During the time that Defendant Michael Murphy was a board member of the Albuquerque Metropolitan Area Flood Control Authority (AMAFCA), he asked a lobbyist to deliver funds to two influential politicians. Defendant Murphy told the lobbyist that his payment from AMAFCA would be increased to pay for the funds that were to go to these two politicians. The total amount of the funds that was to be paid to these two politicians was approximately $30,000.00. The lobbyist refused to agree to this requested arrangement.

Now, it is interesting that the honest lobbyist is not named. But, I guess it's not to difficult for someone to do a little digging and figure out when Michael Murphy was elected to the AMAFCA Board, and then hop over to the Secretary of State's website and discover who was registered as a lobbyist for AMAFCA at that time.

However, the big question here that is not quite as easily answered is who are the "two influential politicians" that were supposed to receive $30,000 from Michael Murphy? It would be safe to assume we are not talking about Manny Aragon, since he is already identified in the filing as a co-conspirator. Are these unnamed influential politicians still serving in the Legislature? Are they Democrats or Republicans? Can they still be bought for $30,000?

Speaking of unnamed folks in the legislature:

During the 2003 legislative session, Defendant Aragon told a legislative staff member to redirect funds that had been allocated in 1999 to two other projects to the Metropolitan Courthouse for use as additional funding on that project. Defendant Aragon's statements, which caused the redirection of the funds, made additional funds accessible to the members of the conspiracy related to the building of the Metropolitan Courthouse.

Kind of makes you wonder who is this unnamed "legislative staff member" who aided and abetted in defrauding the taxpayers? The 2003 legislative session wasn't that long ago. Is this person still working in the legislature? Are they now assisting other politicians in making "additional funds accessible" for other building conspiracies?

I've got to run, but let me leave you with this thought...

The next time you read in the paper about "ethics reform efforts" being proposed by the Legislature, you might want to ponder if any of those serving on the ethics task force are actually the unnamed politicians from the conspiracy.

Schumer Releases Official Transcript of Domenici Call to Iglesias

I don't usually write on Sunday's, but this is just too important to wait until tomorrow. In an apparent attempt to keep the partisan bashing of New Mexico's Republican Congressional Representatives alive, Senator Charles Schumer (D-NY) earlier today released the official transcripts of the now infamous call between former U.S. Attorney David Iglesias and U.S. Senator Pete Domenici (R-NM).

Under a little known section of the Patriot Act, the U.S. Senate Select Committee on Intelligence has been recording all conversations between its members and other branches of U.S. Government. When the Senate was under Republican control, this information was only used to keep the caucus voting as a block. However, now that the tide has turned, and the Democrats control the Senate, the Democratic Senatorial Congressional Committee (DSCC) is on record as saying they will shamelessly use the information as often as necessary to win additional seats in the Senate for Democrats.

In what will most likely go down in the history books as the beginning of a new dawn in American politics, Senator Schumer, at the urging of former New Mexico Attorney General Patricia Madrid, has released the transcript below from that fateful day in October:

5:04 p.m. October 27, 2006

U.S. Senator Pete Domenici: Hello, this is Pete. I want to -

U.S. Attorney David Iglesias: Just a second, Pete. Honey, can you turn up the volume.

Heard in the background: "YOU CAN'T HANDLE THE TRUTH!"

U.S. Attorney David Iglesias: Ah, I love that scene. Pete, did I ever tell you the movie a Few Good Men was based on my life?

U.S. Senator Pete Domenici: Yes, David. Now listen, I have something important to ask you?

U.S. Attorney David Iglesias: Pete, hold on a second. Sweetheart, where's the suntan lotion? Oh, thanks. Pete, have you ever been to Bali Bali?

U.S. Senator Pete Domenici: No, David, I haven't. The reason I'm calling -

U.S. Attorney David Iglesias: Me neither. I can't thank you enough for getting me this job. The foreign travel perks have been FANTASTIC. I've seen more of the world in this job than in my whole time in the service. In fact, if it wasn't for the all this legal stuff they keep asking me to do, I'd say this was the best darn job in the whole world.

U.S. Senator Pete Domenici: David, that's why I'm calling. You see, people are calling me, and complaining about -

U.S. Attorney David Iglesias: Oh, Pete, don't worry about that. You're so old school. People call me all the time. I just have them put straight into voicemail. After all, a guy can only listen to so much whining about voter fraud. This is New Mexico, of course we have voter fraud. Pete, you got to learn to just ignore folks.

U.S. Senator Pete Domenici: David, are you going to file indictments before your next trip abroad in November?

U.S. Attorney David Iglesias: No.

U.S. Senator Pete Domenici: I'm sorry to hear that.

Sound of line going dead.

U.S. Attorney David Iglesias: Pete, Pete, are you still there? Huh? Honey, where is that travel itinerary? Oh, and bring me my antacids. You know how I always feel sick to my stomach before traveling.

5:07 p.m. October 27, 2006

New Mexico Democratic Party Chairman, John Wertheim, held a press conference today in front of the Bernalillo County Courthouse, in which he stated:

I'm glad the good Senator from New York, Senator Schumer, released this transcript today. People were beginning to lose focus. Too much emphasis was being placed on the indictments against my good friend and a New Mexico treasure, former State Senator and fired Highlands University President, Manny Aragon. So, what if former Senator Aragon took a little bit of money for himself. He worked tirelessly handing out New Mexico taxpayers' money to his friends for years. Is it really a crime that he should finally keep a bit for himself? Do you realize that our state legislators don't get paid?

No, what's really important is the total disregard Senator Pete Domenici showed when he violated U.S. Attorney David Iglesias in his own home and emasculated him in the presence of his wife.

The transcripts clearly show that the Senator doesn't understand that the work day ends at 5:00 p.m. Maybe back in the old days people put in long hours, but this is the 21st century, and we have rights. The U.S. Attorney is not a greeter at Walmart. He doesn't even get overtime. No, my friends, Senator Pete Domenici stepped over the line, and showed little regard for David Iglesias.

The transcripts clearly showed that the Senator did not even once ask David how long he would be gone? He didn't even think to ask if he should send someone to check on David's house while he was traveling. He didn't even have the courtesy to say goodbye before ending the conversation.

Let us not lose sight of what it truly important. Another New Mexico kickback scandal is nothing compared to a Senator who answers the phone when his constituents call and then proceeds to take action. Senator Domenici set a very dangerous precedent here for all New Mexico politicians.

In fact, I have it on good authority, that in 35 years of service, Senator Pete has never even taken a kickback. No, this cannot go on. We must unite and take back this U.S. Senate seat. In the name of Manny Aragon, Michael Montoya and Robert Vigil, our future, the future of the Democratic Party of New Mexico, depends on it.

Stay tuned for more on this developing story.

What a World of Difference a Change Can Make

Successful prosecution of public corruption under former U.S. Attorney David Iglesias (R) and former Attorney General Patricia Madrid (D) was, well, practically non-existent. They were the perfect example of the gang who couldn't shoot straight. First, Mr. Iglesias botched the Vigil case, and then Ms. Madrid makes a bad situation worse be indicting the witnesses.

Compare that to what just happened yesterday:

Acting United States Attorney Larry Gomez and New Mexico Attorney General Gary King in conjunction with the Federal Bureau of Investigation (FBI) SAC Thomas McClenaghan announce the filing today, Thursday, March 29th, of a federal grand jury indictment charging four defendants in a conspiracy, mail fraud and money laundering public corruption case. Those charged defendants are Toby Martinez, Manny Aragon, Raul Parra and Sandra Mata Martinez. The loss to the State of New Mexico taxpayers of approximately $4.2 million forms the basis of the indictment.

Now, anyone still wonder why neither the former U.S. Attorney or Attorney General have a job. Yeah, I didn't think so. Oh, and just for the record, Ken Schultz, the former Albuquerque Mayor who plead guilty in this thing, is a registered Republican, so any blogger trying to pretend that these are all Democrats is purposely trying to mislead his readers to keep the Democratic campaign against our Congresswoman and Senator alive.

Manny Aragon Indictment

UPDATE: Due to the recent Courthouse indictments, this post is getting a lot of hits, so I thought all of the new visitors might appreciate links to a more recent post from the day after the indictments. Make sure to check the main page often, as I'll post more as case moves forward.


People arrive on this site through a variety of key word searches. Sometimes looking at the searches that brings them to this blog is a good indication of news that's about to break. For example, just hours ago someone did a Google search for "Manny Aragon Indictment" and landed here. Now, I'm not listed until the second page of the search, so I can't help but think they were looking for something in particular. A quick check of the Albuquerque Journal website shows this breaking story (subscription):

New Mexico Highlands University President Manny Aragon has been placed on administrative leave, and regents said Wednesday they were negotiating his role at the northern New Mexico school.

The decision to put Aragon on leave was made over the course of recent days, Regents Chairman Javier Gonzales and Regent John Loehr confirmed Wednesday evening. They declined to say what prompted the decision.

"It is a personnel issue and discussions are currently under way,'' Loehr said, adding that he expected a "fairly early resolution.''

Aragon, reached Wednesday evening at his home in Albuquerque, declined comment. He said only that he and the regents were in negotiations about his future at the university.

Can't help but wonder if the two are connected, or if this is just an odd coincidence. I guess we will know more soon.