Jerome Block Jr. plans to remain in his state Public Regulation Commission post despite felony indictments filed Wednesday against him and his father on election-related charges.

A grand jury indicted the commissioner on eight counts while his dad, former commissioner Jerome Block Sr., was indicted on four.

Charges against the younger Block include two counts of embezzlement of over $500 but not more than $2,500. Charges against both Blocks include election-code violations, conspiracy to commit a violation of the elections code, tampering with evidence and conspiracy to commit tampering with evidence.

"I'm elected, I'm here, I'm not going anywhere," Block Jr. said before closing his office door to a reporter at the PERA Building on Wednesday afternoon.

He later ducked reporters waiting to talk to him and didn't return to a public hearing on Public Service Company of New Mexico's proposed electric-rate hike.

Voters in a heavily Democratic district of Northern New Mexico,which includes Santa Fe, last fall elected Block Jr. to his $90,000-a-year regulatory position. Under the state's public campaign-financing system, he received more than $101,000 in taxpayer money to run for the office, which helps oversee utilities, insurance and other industries. He started the job early this year.

The New Mexico Attorney General's Office, which investigated reports that the candidate lied about how he used some of the public funds, wouldn't comment on the indictments or provide any explanation of the charges Wednesday. Gov. Bill Richardson's office also declined to comment.

Block Jr.'s attorney, Cammie Nichols, called the case a "pointless prosecution" and said her client did nothing wrong.

"They were dealing with a new statute and some poorly defined regulations, and they cooperated with the Secretary of State's Office," she said.

Nichols said the Secretary of State's Office had dealt with the matter. Block Jr. paid penalties to the secretary of state for lying on a campaign-finance report and misusing public funds.

PRC Chairman Sandy Jones, a fellow Democrat, said he was confident that Block Jr. could serve as a public watchdog and praised his performance on the PRC. He also said Block Jr.'s indictment was not a distraction.

"Let's just monitor the situation and see how the courts work through this," Jones said. "There's a lot of things that will happen in the coming months. I don't know how fast this will be. I certainly hope this will be fast, and if I was Commissioner Block, I'd certainly want this stuff behind me."

Commissioner Jason Marks declined to wade into the matter, saying he was focused on electric-rate issues. "I agree," he said on whether Block Jr.'s charges were a distraction, but added, "I'm accountable to my own constituents, and if there's a hearing like this I'm going to be there."

After taking part in some commission proceedings Wednesday, Block didn't return for the PNM rate hearing. He had told The New Mexicanlast week that he had a number of questions for the state's largest utility, which seeks to raise electricity rates nearly 10 percent.

Rick Lass, who as a last-minute candidate lost to Block Jr. in November's general election, said he was heartened by the indictments. "I don't know a lot of details. I can say I'm glad there's follow-up by the attorney general," said Lass, who had lobbied for public campaign financing. "I'm glad that it wasn't just dropped after the election and that the public-finance law has some teeth to it."

Lass was a Green Party member when he lost to Block Jr., who got 56 percent of the vote. Lass, who entered the race after Block Jr. won the Democratic primary and faced no Republican opposition, has since switched to the Democratic Party.

Richardson, also a Democrat, would be in charge of appointing a replacement were Block Jr. to vacate his seat.

"I'm definitely still interested in that seat," Lass said. "I would be dedicated to being a good public servant."

Lass said a lot remains to be seen about Block Jr.'s fate. "It's not about what's in it for me," he said. "It's about 'is he qualified to hold that position?' "

The indictment alleges both Blocks violated state election laws, including the one under which candidates can get public financing. It says each "knowingly made a false statement in a report required by that act."

As for the embezzlement charge against Block Jr., the indictment alleges he "did embezzle or convert to defendant's own purpose $2,500, which belonged to the state of New Mexico, the New Mexico State Treasury Public Election Fund, or another, which had a market value of over $500 but not more than $2,500, and with which defendant had been entrusted, with fraudulent intent at the time of conversion to deprive the owner of the property."

Block Jr. during the campaign admitted to lying about a $2,500 expenditure, but it's unclear from the indictment if that is the same $2,500. He at first said he gave the $2,500 in public funds to San Miguel County Clerk Paul Maez's band, Wyld Country, to perform at a May rally. But he later changed his story after two band members said no such performance occurred. He admitted to lying in an e-mail exchange with Las Vegas Optic reporter David Giuliani.

The secretary of state ordered Block to pay $21,000 for lying about how he spent public campaign funds and misusing public money. The office also ordered that he return $10,000 in public campaign funds he received.

A second embezzlement count alleges Block Jr. embezzled or converted to his own purpose $1,700.

During the campaign, Block Jr. got into trouble for giving $700 in state funds to Hillary Clinton's campaign for president, although the indictment doesn't make clear whether that same $700 is part of the $1,700 at issue.

For donating to Clinton's campaign, Block Jr. was fined $1,000 by the secretary of state.

The indictments also allege that both Blocks "changed and/or hid and/or fabricated reports and/or documents and/or checks with the intent to prevent the apprehension, prosecution or conviction of himself or another."

Block Sr. served on both the PRC and its predecessor, the state Corporation Commission, for 18 years, from 1987 through 2004. He is a registered lobbyist for Mescalero Apache Telecom Inc. and the New Mexico Water Service Company, according to the secretary of state's Web site.

Block Jr. hired a Mescalero Apache Telecom subsidiary to design and host his campaign Web site.

Campaign records also show that on June 3, Block Jr. gave his dad $600 to "reimburse expenses."

Neither Block Sr. nor his lawyer returned a call seeking comment Wednesday afternoon.

Block Jr.'s grandfather, the late John Block, was a state corporation commissioner for 10 years, until 1962, and served as mayor of Española.

A handful of people were subpoenaed by the grand jury, including the reporter, Giuliani, Secretary of State Mary Herrera, Deputy Secretary of State Francisco Trujillo and ethics administrator Tracey Littrell. Of those three in the Secretary of State's Office, only Trujillo was called to testify.

Jurors' questions for Giuliani during the closed-door proceedings focused on an exchange of e-mails between Giuliani and Block Jr. during the campaign, the journalist has said.

"They focused on the simple fact he spent two weeks saying one thing ... and then he sent an e-mail ... saying I'm going to be forthcoming," Giuliani said in an interview in late March.

Contact Kate Nash at 986-3036 or knash@sfnewmexican.com. Read her blog at www.greenchilechatter.com.

THE CHARGES

Indictments filed Wednesday in state District Court list these felony counts:

PRC MEMBER JEROME BLOCK JR.
Count 1: Violation of election code, Campaign Act, Voter Action Act
Count 2: Conspiracy to commit violation of election code
Count 3: Violation of election code, Campaign Act, Voter Action Act
Count 4: Conspiracy to commit violation of election code
Count 5: Tampering with evidence
Count 6: Conspiracy to commit tampering with evidence
Count 7: Embezzlement (over $500 but not more than $2,500)
Count 8: Embezzlement (over $500 but not more than $2,500)

JEROME BLOCK SR.

Count 1: Violation of election code, Campaign Reporting Act, Voter Action Act
Count 2: Conspiracy to commit violation of election code
Count 3: Tampering with evidence
Count 4: Conspiracy to commit tampering with evidence

Editor's note: The indictments in this case are posted at this link on santafenewmexican.com. Some paperwork might seem to suggest that there was not probable cause to make an indictment, however, a reporter has verified that the indictments were made and the confusion was caused by a typo.

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In these short cellphone videos by The New Mexican's Doug Mattson, NM PRC Chairman Sandy Jones takes questions on Jerome Block Jr's indictment related to possible violations of state elections codes. Block and his father Jerome Block Sr. were both indicted on April 8, 2009.