Grand jury hears ex-state official

ALBUQUERQUE (KRQE) - KRQE News 13 has learned that the federal grand jury investigating Gov. Bill Richardson's administration has taken testimony from a former executive of a state finance agency.

News 13 has confirmed that Carlos Romero, once an official of the New Mexico Finance Authority, has been questioned by FBI agents conducting this high-level probe. He was then brought back to testify before the federal grand jury.

Four years ago Romero was the NMFA director of intergovernmental relations. He is now an associate vice president at the University of New Mexico.

The grand jury is investigating a possible "pay-for-play" scandal allegations involving CDR Financial Products Inc., a California company that was handed state contracts totaling almost $1.5 million. Those contracts related to issuing bonds for transportation projects were award through the NMFA.

Richardson cited the investigation on Sunday when he withdrew his nomination to be Secretary of Commerce in the Obama administration.

Before getting the state contracts CDR and its president David Rubin contributed $100,000 to two political committees controlled by Richardson.

Published reports said David Harris, who was Romero's boss at the finance authority, was also interviewed by the FBI. Harris is now an executive vice president at UNM.

Romero declined to talk to News 13 about his grand jury testimony.

CDR has repeatedly denied any wrongdoing. On Monday Rubin said his company underwent "a rigorous vetting process" and "has never practiced pay-for-play on any playing field where we do business."

Rubin was apparently a generous contributor to President-elect Obama's campaign as well.

According to Federal Election Commission records, he gave more than $26,000 to the Democratic Party on Sept. 19 and $2,300 to the Obama campaign on September 30th.

Rubin had given another $1,000 to the Obama campaign last February.