The Richardson administration's transportation program finance plan isn't the only New Mexico project involving CDR Financial Products that federal investigators are investigating.
Last year, in September and November, the U.S. Justice Department subpoenaed records of bond transactions for The University of New Mexico, dating back to 2002.
The California-based CDR is at the center of a federal grand-jury investigation of a possible "pay-to-play" arrangement involving Gov. Bill Richardson. That investigation led to Richardson's withdrawal this week as President-elect Barack Obama's nominee as commerce secretary. Richardson's political action committees received $110,000 from CDR about the time the company was chosen to be part of a financial team for the state transportation-construction program known as GRIP, which stands for Governor Richardson's Investment Partnership.
Although CDR is not mentioned specifically in either of the two UNM subpoenas, a university spokeswoman confirmed the company is mentioned in some of the documents the university gave to the government, and CDR was paid $56,000 in November 2002. Spokeswoman Susan McKinsey said Tuesday that it's possible other payments were made to CDR from the UNM bond sales.
McKinsey stressed UNM is not a target in any criminal investigation.
The Bond Buyer, a daily financial publication, reported last month that the UNM subpoenas are part of "a widening look at practices in the pricing of derivatives" and that the Justice Department has "subpoenaed records from more than 30 banks, insurance companies, and brokers involved in interest rate swaps and contracts to invest bond-sale proceeds."
New Mexico Financial Authority minutes indicate the board was told in March 2004 that CDR had provided "similar services" to UNM.
One of the UNM subpoenas asked for all records from the 2002 sale of nearly $93 million of revenue bonds in 2002. The other subpoena asked for all records dealing with a $25 million bond sale that took place in early 2003.
The Bond Buyer reported the bonds were sold through negotiation with JPMorgan as senior manager with RBC Capital Markets and George K. Baum & Co. as co-managers.
McKinsey said documents indicate CDR was paid for administrative and financial-advisory services.
For its work on the GRIP project, CDR made almost $1.5 million.
In other developments in the CDR grand jury, Albuquerque lawyer Paul Kennedy confirmed Tuesday that he is representing David Harris, former New Mexico Finance Authority executive director, in the grand-jury case. Kennedy, a former state Supreme Court Justice, said he couldn't discuss the case. Kennedy served as legal adviser to the state House of Representatives' committee that was looking at the impeachment of former state Treasurer Robert Vigil in 2005. Vigil resigned before the House was able to act.
Harris, who now works for The University of New Mexico, is Richardson's former deputy chief of staff and budget adviser. He also served as secretary of the Department of Finance and Administration under Gov. Gary Johnson in the 1990s.
The Associated Press reported this week that Richardson has hired Albuquerque lawyer Peter Schoenburg as his legal counsel in the grand-jury case.
Richardson is not the only prominent politician to receive money from CDR. According to the Center for Responsive Politics in an article published Monday on its Web site, OpenSecrets.org, CDR's founder and chief executive officer David Rubin contributed a total of $3,300 to Obama, while individuals at CDR gave $26,200 to the Democratic National Committee through the Obama Victory Fund, a committee set up to support Obama's candidacy.
The AP reported that Sept. 17, Rubin was on a list of participants in an $11 million Hollywood fundraiser on behalf of Obama, which also included numerous celebrities.
Richardson is also not the only Obama Cabinet nominee to get money from Rubin or CDR. According to OpenSecrets.org, Interior secretary nominee Sen. Ken Salazar, D-Colo., has received $4,000, while secretary of state nominee Hillary Clinton got $1,000.
Obama spokesman Ben LaBolt declined to comment to the wire service.
A spokesman for CDR has repeatedly said the firm doesn't participate in "pay-to-play."
Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com.
Read his political blog at roundhouseroundup.com.
