Witness links state deal, campaign cash

Associated Press

Updated: Jun 30, 2012 3:48 PM

ALBUQUERQUE (KRQE) — A New York trial has shed light on a closed investigation of former New Mexico Gov. Bill Richardson , as a witness testified that the financial advisory firm that he worked for got a state contract worth nearly $1 million for 13 hours of work.

Douglas Goldberg, a former official with Beverly Hills, Calif.-based CDR Financial Products, testified at the April trial involving a federal criminal antitrust case involving bid rigging in the municipal bond industry.

The Albuquerque Journal reports that that the case had no ties to New Mexico, but that defense attorneys trying to discredit Golberg's testimony examined his role in getting the company a lucrative contract with the New Mexico Finance Authority.

Golberg testified that he delivered a $25,000 political contribution to Richardson and that the governor then said, "Tell the big guy I'm going to hire you guys." Goldberg said he understood "big guy" to mean his direct boss, Stewart Wolmark, who Goldberg testified had given him the check.

Richardson's attorney, Peter Schoenburg, said Friday that he denies any wrongdoing.

"The witness is not credible, the allegations are old and discredited, and the testimony is simply false," he said.

Election records show that David Rubin, head of CDR Financial Products, contributed $25,000 to Moving America Forward, a Richardson political action committee that was formed to register new voters for the 2004 election.

Rubin's company, Chambers, Dunhill, Rubin and Co., which does business as CDR Financial Products, contributed $75,000 to another Richardson political organization in the same time frame.

Rubin, Goldberg and other CDR executives have pleaded guilty to a massive municipal bond bid rigging scheme.

The New Mexico contract, which was not involved in the New York case, involved a portion of Richardson's $1.6 billion bond project, which included highway improvements and construction of a commuter train.

Goldberg testified that CDR did about 13 hours of bond work for the state and was paid nearly $1 million.

The FBI and U.S. Attorney's Office in New Mexico investigated the bond work contracts and political contributions In 2008 and 2009. The investigation ended in August 2009 with the expiration of the statute of limitations.

As details of the investigation emerged, In 2008 and 2009, Richardson withdrew his name from nomination as a President Barack Obama's secretary of commerce.

Then-U.S. Attorney Greg Fouratt sent a letter to defense attorneys in the case saying the investigation revealed that pressure from the governor's office resulted in corruption of the process so that CDR would be awarded financial work from the New Mexico Finance Authority.

For example, bid scoring sheets were changed in a way that allowed CDR to be hired to do advisory work for the New Mexico Finance Authority.

The letter also said the decision not to bring an indictment "should not be interpreted as an exoneration."

In 2004, Si Se Puede! Boston 2004 Inc. was formed to pay the bills for Richardson and his staff to attend the Democratic National Convention in Boston.

The committee raised $191,000, and $130,000 of that came from financial companies involved in Richardson's bond project.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Political Pulse

We welcome your thoughtful comments. Be the first to participate in the discussion. All comments will display your username and avatar.