Lt. Gov. Diane Denish, who is running for governor, will donate to charity all campaign contributions from those indicted this month in a housing scandal case.

Denish, according to records kept by the National Institute on Money in State Government, has received $4,000 from Albuquerque lawyer Robert Strumor, who was bond counsel for the Region III Housing Authority; and $500 from former state legislator Vincent "Smiley" Gallegos, who was executive director of Region III.

Denish's political director, Steve Fitzer, said Monday that Denish's campaign has yet to decide which charity will receive the money. "It probably will be a charity related to housing," Fitzer said.

In a written statement released late Friday, Denish said, "I led the effort to reform the entire Regional Housing Authority and to make certain more oversight of public funds was in place. Hopefully, the reforms and the indictments will close the door on this chapter in New Mexico's history and begin a new era of open and honest government in New Mexico."

She was referring to 2007 legislation that took away power from the regional housing authorities. The bill was sparked by the Albuquerque-based Region III, which earlier defaulted on $5 million in bonds it sold to the State Investment Council.

A grand jury indicted Gallegos on 12 felony counts including fraud, embezzlement and money laundering. He faces more than 72 years in prison if convicted on all counts. Strumor was indicted on five felony counts, including fraud, money laundering and conspiracy.

Also indicted were accountant Dennis M. Kennedy, indicted on seven counts and lawyer David N. Hernandez, indicted on a single count of tampering with evidence.

Denish isn't the only New Mexico politician to receive money from the Region III defendants. Gallegos contributed more than $26,000 to state Democratic candidates and organizations since 2002. In that same period, Strumor and his law firm have contributed more than $22,000, all but $850 of which went to Democrats. Hernandez has contributed less than $2,000 to candidates since 2002.

Gov. Bill Richardson's gubernatorial campaign received $12,090 from Gallegos between 2002 and 2006: $2,260 from Strumor and $1,200 from Hernandez. A spokesman and spokeswomen for Richardson didn't respond to a request for comment Monday.

Former state Treasurer Robert Vigil — serving a federal prison sentence for his role in a kickback case — received $10,200 from Strumor, who also gave $1,000 each to Secretary of State Mary Herrera and former Attorney General Patricia Madrid.

Gallegos donated $2,000 to state Sen. Phil Griego, D-San Jose, in 2004. Griego couldn't be reached for comment Monday. Gallegos also donated $5,500 to the New Mexico Democratic Legislative Campaign Committee.

Regional Housing Authorities were set up to help low-income people move into affordable homes.

Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com

Read his political blog at roundhouseroundup.com.