A federal grand jury is investigating how a California firm that contributed to the political activities of New Mexico Gov. Bill Richardson, the nominee to head the Commerce Department, won a lucrative government contract.
A person familiar with the proceedings told The Associated Press on Tuesday that the panel is looking into possible "pay-to-play" dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico. The person asked not to be named because the proceedings are secret.
The proceedings follow an FBI probe in which investigators sought documents from the New Mexico Finance Authority. Investigators also interviewed former and current authority officials about New Mexico's 2004 contract with CDR for the $1.6 billion transportation program.
CDR was paid a total of $1.48 million in 2004 and 2005 for its work, according to documents provided by the state.
Asked whether the probe focused only on CDR's actions in securing or executing the contract, the person with knowledge of the investigation said, "It is more than that."
Richardson ignored two shouted questions about the company at his afternoon news conference in Santa Fe and left the room.
Richardson spokesman Gilbert Gallegos did not confirm the grand jury probe but said the governor's office is "aware of questions surrounding some financial transactions at the New Mexico Finance Authority."
"We expect any state agency that is approached with questions to cooperate with federal officials," he said.
Richardson is President-elect Barack Obama's nominee to head the Department of Commerce. An official with Obama's transition office did not have immediate comment Tuesday.
CDR was part of a team of investment and financial advisers selected by the authority to piece together a complex bond financing deal for a highway and transportation construction program. Richardson won legislative approval for that program in 2003.
