Former Secretary of State Rebecca Vigil-Giron is facing 50 felony counts of fraud, money laundering, tax evasion, creating false documents and soliciting or receiving kickbacks in a case involving millions of dollars in federal election funds.
A state grand jury in Albuquerque on Wednesday indicted Vigil-Giron, political consultant Armando Gutierrez, and lobbyists Joe and Elizabeth Kupfer in the case. Gutierrez and both Kupfers also face 50 felony counts each.
Gutierrez is a consultant who has produced Spanish-language ads for former President Clinton's 1996 campaign and Al Gore's 2000 presidential race. He also worked on Gov. Bill Richardson's 2002 gubernatorial campaign. The Kupfers are lobbyists for the city of Albuquerque and other clients.
Each of the defendants is charged with four counts of fraud over $20,000 (or, in the alternative, four counts of embezzlement over $20,000); 11 counts of money laundering over $100,000; five counts of money laundering over $20,000; eight counts of tax fraud; conspiracy, tampering with evidence and various other charges.
If convicted of all counts, the maximum sentence for each defendant would be more than 20 years in prison.
Vigil-Giron declined to discuss the indictments when contacted Wednesday. She referred a reporter to a written statement she released earlier in the day, in which she called the investigation a "witch hunt" and said she could "account for every last nickel that was spent" on the voter-education project at the center of the case. She also said attorneys at the Attorney General's Office signed off on the 2004 contract with Gutierrez to produce "voter education" television spots.
In her statement, Vigil-Giron said, "It appears to my supporters and to me, that those individuals who have never supported my efforts on behalf of the state of New Mexico are continuing their attacks on my reputation and my integrity for the wrong reasons. They are threatened and are afraid that I might run for another public office."
Vigil-Giron's lawyer, Robert Gorence, told The Associated Press that he wanted a trial as soon as possible, preferably within the next three months, "because I have that confidence in the outcome when a jury hears all the facts."
In 2004, Vigil-Giron's office paid Gutierrez about $6.3 million in federal election funds. In early 2008, a federal audit said Gutierrez could only account for about $2.6 million of the company's costs. This discrepancy prompted a scathing audit last year from the federal Election Assistance Commission and early this year from the State Auditor's Office. The state report said Vigil-Giron paid Gutierrez $323,060 more than the maximum amount allowed under the contract.
The indictments spell out a complex series of transactions involving large amounts of money transferred to Gutierrez's bank account, then transferred to another Gutierrez account, then to an account belonging to the Kupfers.
The indictments also refer to four "false public vouchers" beginning in September 2004, and a false memorandum dated Sept. 2, 2004, which, the document charges, was created sometime between September 2004 and April 2007.
Vigil-Giron, who served three terms as secretary of state, left office at the end of 2006. She ran for a congressional seat in the Democratic primary last year, losing to Martin Heinrich, who went on to win the general election. In 2007, Richardson announced he was hiring her as director of the state Film Museum, but put the hiring on hold because of the investigation of the election funds. She later was hired by the state Workforce Solutions Department.
Vigil-Giron is the latest New Mexico political figure to be indicted in cases brought by King. Also facing charges are Public Regulation Commissioner Jerome Block Jr. and his father, former PRC member Jerome Block Sr., and former legislator and Region III Housing Director Vincent "Smiley" Gallegos. The Blocks are accused of mishandling public campaign funds, while Gallegos is accused of embezzling funds from the affordable housing agency he directed.
Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at roundhouseroundup.com.