Now, feds probe Gov. Richardson of Obama Cabinet for 'pay-to-play'

It seems that Illinois' legally challenged Gov. Rod Blagojevich is not the only close Barack Obama associate and Democratic governor being investigated by the feds for possibly selling government business in return for campaign contributions.

New Mexico's Gov. Bill Richardson, who is the newly named Secretary of Commerce in Obama's about-to-be Cabinet, is also being investigated by a federal grand jury in his home state for possibly steering state bond business from the New Mexico Financial Authority toward David Rubin, a significant campaign contributor, according to an NBC News report, among others.

NBC's Lisa Myers reports that two former state officials say they've recently been questioned by a federal grand jury specifically about allegations that Richardson or aides pushed state business worth nearly $1.5 million in fees toward CDR Financial Products in 2004. The company is headquartered in Beverly Hills.

This was about the same time as CDR's founder, Rubin, donated $100,000 to two of Richardson's political action committees; mainly it appears to cover expenses of the governor and his staff at the Democratic Party's National Convention in Boston that summer.

Rubin also donated another $29,000 to Richardson's unsuccessful presidential campaign this year and last.

The probe is part of a broad national federal exploration of "pay-to-play," in which government officials reap financial or other benefits in return for state business.

Richardson has ignored reporters' questions on the federal investigation, while a spokesman says he's confident the relationship was entirely appropriate and the governor expects state employees to cooperate fully with federal investigators. A CDR spokesman also said the transactions were appropriate.

An Obama transition official has refused to comment on whether the president-elect knew of the investigation before he appointed Richardson to his new Cabinet position.

Obama has called Richardson "my great friend" and said the governor would be a key member of his administration's economic team. Richardson, the first Latino in Obama's Cabinet, described himself the same way.

On Tuesday, the Obama transition team issued a five-page report of its own involvement with Blagojevich, who's charged in a federal criminal complaint with demanding money for state aid, business and his appointment of Obama's Senate replacement.

The Obama team report completely absolved the Obama team of any wrongdoing, as the Ticket reported here. But Obama was already on vacation when the report was issued and has said he won't be talking further about the matter. The president-elect's main Blagojevich contact, new White House chief of staff Rahm Emanuel also happened to be unreachable on a vacation in Africa.

Here's the full video report below.

-- Andrew Malcolm

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Photo credit: Associated Press

Comments

[Sad, Sad Commentary]

Such a sordid mess already - and can you imagine the level of corruption once Obama gains the full power of the presidency? No wonder people are so insecure about this new administration. As more details surface, we begin to see the true nature of this man and his associates, and it does not bode well for this country.

[John]

My.......my....2 federal investigations involving Obama's staff or his candidates for cabinet positions, all before Obama has even been sworn in as president.
With 4 years to go, Obama's first term could make slick willie look like a sunday school teacher.
Fasten your seatbelts!!!!

[Jack Henry]

When does the investigation of the Bush-Cheney gang of thieves begin? Press is focused on Democrats that appear to suggest problems for Obama. That National Enquirer tabloid vibe is apparently too hard to resist and easy to write. Do your homework. Spread this mess around to all parties, regardless of party.

[Z Dean]

Why are you using the euphemism "pay to play" when you could simply call it what it is: bribery?

[Grant Devereaux]

"It seems that Illinois' legally-challenged Gov. Rod Blagojevich is not the only close Barack Obama associate" Really? In what parallel universe is Gov. Rod Blagojevich a close Barack Obama associate? This is responsible reporting?

I can't believe I have lived long enough to see the reemergence of McCarthyism. The LA TIMES should be ashamed. I would cancel my subscription but what intelligent person subscribes to this paper anymore? With irresponsible journalism of this type, newspapers deserve to die an early death. Bloggers, however irresponsible, at least do not pretend to be professional journalists. The L A TIMES does.

[Timber]

Experienced people will come with a full set of baggage, but IMHO Obama should make him walk the plank double-quick if there's anything to this. Despite all the bonhomie, I still remember how Richardson threw Wen Ho Lee under the bus.

[Ruggy]

"Pay to Play?"

Just how many different ways can we say "corruption" nowadays?

[pbishop]

Obama will make some mistakes in his appointees. I always questioned Bill Richardson's motives when he made the cervical cancer drug Gardasil, mandatory in New Mexico. There were rumors of "pay to play" then. It is also not publicized but Gardasil is also mandatory for those (age appropriate) applying for American citizenship. There needs to be some investigation into Merck's donations.

[Tex Lovera]

"The Obama team report completely absolved the Obama team of any wrongdoing".

Wow. Just, wow.

PS-

Could you quit putting obnoxious popup ads on your site? You screwed up the dead tree version; don't screw up your last chance!!!

[Bryan]

It's a no brainer someone else close to Obama is going to get caught soon. The question is,,,,,,how good was Obama at NEVER allowing himself to be recorded acknowledging and/or giving permission for his people/promotors/staff's misdeeds.

but,,it still won't matter probably,,,I mean half the country somehow was able to ignore his relationships with William Ayers, Bernadette Dorhn, the Mad Preacher Wright, Blogscumavich, the mobster Tony Resko,,etc....

This country is in trouble,,,,I blame the republicrats/Rush Limbaugh/Sean Vanity/the leprechan (oreilly) and other false conservatives for weaking the republican party so much to allow this to happen. Russia, China, Bin laden, Taliban, Iran,,,couldnt be happier.
God help us all.

[James Karkheck]

Why in the world does this article start by describing Rod Blagojevich as a "close Barack Obama associate"? That's nonsense, and brings into disrepute everything that follows.

JFK

[sweetwater]

Wow! Mainstream media is going to move straight from "Blagogate" to "Richgate". Way ta go, hacks!

[LogicalUS]

Looks like the LA Times, NY Times and MSNBC have 4 long years ahead of them to keep covering for the "messiah".

Barry has been surrounded by corrupt and sleazy associates his entire life and it only continues in his cabinet. Imagine that? Barry never met a sleazeball he did not like but lucky for America, the ole messiah never contracts any of that sleaziness upon his most righteous self, right, LA Times?

The question remains and will keep coming back. Does Barry Soetoro have any associate anywhere which aren't sleazy and corrupt? From his perk-taking wife and her crazy salary increases to his campaign financier, Rezko, to his main political ally, Blago, on to his Chief of Staff and now to all the other Clintons, Barry picked to run his government while he is off posing in Hawaii.

Yep, you have your work cut out for you.

[rick]

Interesting that after years of total impunity for corrupt governance under Bush the feds are now investigating Democrats. How about the Cheney administration's use of the US military to invade a sovereign country for the pure benefit of their friends in Big Oil? That's not corruption?

[jrobinson]

Just another example of the democRAT culture of corruption in full swing. It took almost 50 years for us independents to pry their greasy, greedy hands from control of the US government - and you guys that have only been paying attention since 2001 put them back in charge. Brilliant. Is it any coincidence the economy tanked after they took charge in 2006?

The hypocrisy is overwhelming: one gets the feeling that if Bush was the President-Elect and there was already a full blown Presidential scandal like this, the press wouldn't be so blaise about it. Never mind letting Bush investigate himself and drop the report the day before Christmas when all the principals were out of town - then say he wasn't going to talk about it anymore.

Change you can believe in!

[Russ Messick]

Hey Jack Henry, You have never heard of Randy Duke Cuinningham? He was a Republican governor that was taken down just a couple of years ago. There are others Rep's taken down too. Ohhhh! A right wing conspiracy! Don't act like a dork and do your homework before you speak! Ahhh! And your telling others to do their homework? Unreal!

[Roy]

WOW! The Obama team absoved themselve's surprise, surprise! Can you say Trust me and mean it?

[Going nowhere fast]

Here are the thirty pieces of gold that James Carville knew about when he called Richardson governor Judas.
This was Obama,s weakest pick and he needs to dump
the sleazy bum before Emanue is also zapped.Madoff and all the other democrat financial scumbags will sink
this man and us with him unless he is impeached before inauguration.the democrat party of today is America's
Achille's heel.

[Ken Meltzgoza]

The Feds can use honest services mail fraud. There is no definition and can be abused to fit what ever they want.

[Thedes]

Cheney admits on national TV that he committed war crimes. Bush has been implicated in the outing of CIA agent Valerie Plame, lied to get us into waging war against a country that didn't threaten us but has lots of oil to spare, and all this loser can rag on about is that Richardson may have played hanky-panky. Well, it keeps the heat off of the real criminals that Andrew apparently loves beyond reason. Hey, he won't ever investigate any wrong doing by one of his beloved Republican reps. Nope, keep the focus on the Dems even if it means using false allegations and innuendos up the ying-yang.

[chuckles199]

this is what happens because obama doesn't vet people like the media failed to vet him or biden.

richardson is a boston brahmin who has been impersonating a working class mexican now for twenty years.

his father was a wealthy citibank executive named william blaine richardson. billy's mommy was his secretary. she is from spain and is castlian spanish.
bill was born in pasadena CA. he just lied again and said his 95 year old mother is mexican. he is lying. she lives in cuernavaca an 100% american retirement community 50 miles from mexico city.

lil' billy was raised with tutors and private schools in boston. bill also evaded the military draft on a phony physical technicality.

how much did he inherit from daddy?

his name william blaine richardson the FOURTH!

[Disgusted with the puss tsunami]

Corruption and sleaze is the undisputed domaine of the democrat's nomenclatura. What they did to Fanie MAE is revolting and sen. Schumer's and a host
of other dem's ties to Madoff reveal just how urgently we need another J.Edgar Hoover.Dem's not yet involved concentrate on America bashing such as
Ayers.Acorn,the ACLU and moove on org.Then you have the intellectualy challenged dems such as Pelosi,Reed.gov. moonbeam , Al franken and the LGBT.
To think that governance of the USA is in the hands of this odious apparatus is mind bogling.

[NinaK]

Unbelieable!! A negative article gets written about Gov Richardson's POSSIBLE wrong doing and the right-wing chatterboxes automatically ASSUME President Elect Obama is GUILTY BY ASSOCIATION!! I suppose all of you have friends and others you know that are as pure as snow?? I am sure some of your friends, and, you, yourselves, have done things that are illegal (try drunk driving, lying, drug use, shoplifting, etc.) yet you portray yourselves as being sin-free and holy!! Talk about hyypocrites!! You do not have to like our new President, but by the same token, you do not have the right to spread lies and slander about him!! You Bible thumping "Christians" should follow God's commandment, "THOU SHALT NOT BEAR FALSE WITNESS"!! Richardson is being investigated, that does not mean he is guilty. Reserve your judgement until you see whether or not he will have been found guilty. It is amazing how you immediately jump to the very worse of conclusions without proof!!

[OMG GOP... LMAO]

So where exactly has the fear for the country been during the draft-dodging Big Oil Aristocracy (& War against terrorism... oops ...scratch that... oil-producing countries) of Big Oil Bush/Haliburton Cheney and the WMD Inteligence. DUI/druggie Bush, if he were the leader of any other country, would eventually be tried for war crimes. Rowe's efforts to rewrite Bush's history is surpassed in outrageousness by paramedia "journalists" at places like Fox News and LA Times convinincing the common minion that an investigation equals an indictment, or that one person's alleged boo-boo is akin to a conspiracy. Bible-thumpin' Georgie-boy's past then will certainly create plenty of work for Karl Stalin Rowe. The Fourth Reich ends Jan. 20, 2008. Real Republicans, like me and about 80-percent of my family, will someday not be so embarrassed by these type of National Enquirer-type of articles appearing in once-legitimate NEWSpapers like the LA Times. God help the presently misled GOP to return one day to a more Reaganlike era.

[AnnieNYC]

Judas taking a nosedive before Jan. 20th would be just about the best Christmas present ever. Of course the media would never let anything get in the way of their HISTORIC MOMENT! that they worked so hard to inflict on us, so i doubt anything will ever happen. *sigh*