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Nothing really new, but this is from the WSJ.

http://online.wsj.com/article/SB10001424052970204397704577070603352881354.html

By STEPHANIE SIMON

A federal grand jury is investigating former New Mexico Gov. Bill Richardson over possible campaign-finance violations stemming from his 2008 presidential run, including allegations that he arranged for supporters to pay off a woman who planned to say they had engaged in an extramarital affair, according to people familiar with the inquiry.


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Bill Richardson, center, arrived at a Miami fund-raiser in late 2007, during his Democratic presidential bid.

Several of Mr. Richardson's close associates have been granted immunity from prosecution in exchange for their testimony before the panel in Albuquerque, the people said. The panel is one of several grand juries in recent years to examine aspects of Mr. Richardson's administration and campaigns.

Mr. Richardson, 64 years old, who is at an environmental conference in Nigeria this week, didn't return repeated calls and emails seeking comment. His office declined to provide the names of his lawyers.

Jennifer Poersch, the senior finance adviser for his presidential campaign, said that she was "not aware of any wrongdoing or any inappropriate fund raising," and that she hadn't been called to testify before the grand jury.

The U.S. attorney's office in Albuquerque wouldn't confirm or deny the grand-jury probe. Those familiar with the case said that indictments were possible in coming weeks, but that the inquiry could conclude with no charges filed. The probe was first reported by the Albuquerque Journal two weeks ago.

The investigation comes at a difficult time for New Mexico Democrats, who are struggling to regroup after losing the governor's mansion—Mr. Richardson couldn't run again because of term limits—and a number of state legislative seats in 2010. The state is considered a key battleground in the 2012 presidential election and also may be crucial to control of the U.S. Senate, as both parties fight for a vacant seat now held by retiring Democratic Sen. Jeff Bingaman.

New Mexico Republicans benefited in the last election from grand-jury investigations related to the departing Richardson administration, said Brian Sanderoff, president of an independent polling firm in Albuquerque. If an indictment rekindles memories of alleged Democratic corruption, "it sure won't help" Democrats in 2012, he said.

State Sen. Tim Jennings agreed, saying that he and his Democratic colleagues fear "a significant cloud" will hover over their party. "The odor is in the air," he said.

The most explosive matter under investigation involves allegations by a former member of Mr. Richardson's inner circle. That individual said Mr. Richardson's political allies gave $250,000 to placate a woman who was considering suing the governor in 2007, exposing their alleged extramarital affair, according to people familiar with the federal probe. They said the woman was a state employee at the time that she allegedly became romantically involved with Mr. Richardson around 2004. The woman's identity has not been disclosed, and the type of suit considered has not been confirmed.

Those familiar with the case say prosecutors are seeking to prove that the alleged payment to the woman was a de facto campaign contribution to Mr. Richardson, intended to further his bid for higher office. In that case, the alleged payment could have violated federal campaign-finance law if it was not reported and did not comply with limits on political donations.

Former North Carolina Sen. John Edwards, also a onetime Democratic candidate for president, has been indicted over similar allegations in federal court in North Carolina. Prosecutors in that case allege that Mr. Edwards conspired to solicit money from political backers to support his mistress and a former aide in an effort to keep his affair hidden during the 2008 campaign. He has pleaded not guilty and faces trial early next year.

Campaign-finance lawyers say such cases are difficult to prove because it's perfectly legal for people to give financial gifts. A conviction would hinge on proving that the largesse was actually an undisclosed campaign contribution, given for the explicit purpose of helping a politician win an election, said Richard Briffault, a law professor at Columbia University who specializes in campaign finance.

Federal investigators are piecing together a paper trail of checks and international wire transfers surrounding the alleged payment to the woman, some people familiar with the matter said. The grand jury is also examining other alleged financial irregularities, as well as whether Mr. Richardson used his clout as governor to push through a controversial road project that benefited a major political contributor, the people said.

In early 2009, Mr. Richardson withdrew his nomination to be President Obama's Commerce Secretary during a federal probe of alleged links between campaign contributions and government contracts in his administration. That investigation ended without indictments, but Greg Fouratt, the departing U.S. attorney for New Mexico under President George W. Bush, issued a highly unusual letter stating his investigation had "revealed that pressure from the governor's office resulted in the corruption of the procurement process." Mr. Fouratt wrote that the decision not to prosecute was "not to be interpreted as an exoneration" of any party. Mr. Richardson's spokesman at the time dismissed the letter as "sour grapes."

A separate federal grand jury in Albuquerque has spent more than two years investigating whether state investments were steered to generate fees for supporters of Mr. Richardson. That probe, which is continuing, has not led to indictments.

—Evan Perez contributed to this article.
Write to Stephanie Simon at stephanie.simon@wsj.com


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