Monday, May 20, 2013

ROUNDHOUSE ROUNDUP: Little Joe Knew About IRS Intimidation

Amiable old-line
Democratic politician

Somewhere in the Great Beyond, Little Joe is shaking his head and saying, “They’re still at it.”

Assuming they keep up with the latest Earthly news in the Great Beyond, that had to be the reaction of the late U.S. Sen. Joseph Montoya when he learned about the recent scandal over the Internal Revenue Service’s targeting of tea party and other conservative groups seeking tax-exempt status.

You see, the Peña Blanca native, who represented New Mexico in the Senate from 1964 to 1977, had personal knowledge of political targeting by the IRS.

As James Bovard wrote in the Wall Street Journal last week, “after Sen. Joe Montoya of New Mexico announced plans in 1972 to hold hearings on IRS abuses, the agency added his name to a list of tax protesters who were capable of violence against IRS agents.”

The New York Times in 1989 went into Montoya’s experience in greater detail as part of a lengthy article, titled “Misuse of the IRS: The Abuse of Power,” by David Burnham. The piece was adapted from Burnham’s book The I.R.S.: A Law Unto Itself.

Describing Montoya as an “amiable old-line Democratic politician,” Burnham said that in December 1972 — shortly after Montoya announced he would be holding hearings on the agency’s performance — the director of the IRS office in New Mexico began searching its files for information about the senator. Montoya at the time was chairman of the appropriations subcommittee, which approved the IRS budget.

“For an agency that had largely escaped regular Congressional oversight, Montoya’s announced plan may well have sounded like an open declaration of war,” the Times article said. “The Montoya subcommittee had lined up a number of powerful witnesses who were prepared to present evidence that the agency managers were inept. In addition, the first stories about how the Nixon Administration had misused the IRS were beginning to surface.”

IRS Commissioner Donald Alexander, who reportedly initially was enthusiastic about the investigation of Montoya’s taxes, called off the dogs in the summer of 1973. This was about the time that the Senate Watergate Committee — of which Montoya was a member — were holding televised hearings. Whether or not that had anything to do with calling off the investigation isn’t known.

The news of the IRS investigation into Montoya wasn’t made public for another two years. Speaking of Watergate, Washington Post investigative reporter Bob Woodward, fresh off the success of All the President’s Men at that point, broke the news, which was leaked by IRS agents.

In that article, Montoya wasn’t treated as a victim of the IRS by being the subject of a politically motivated investigation. Instead, IRS sources accused Alexander of improperly halting the Montoya investigation. Woodward’s article quoted IRS officials saying they believed Alexander had halted the audit of Montoya because of his influence over the IRS budget.

“To this day, it is unclear whether the target was Alexander or Montoya or both,” Burnham wrote. “Alexander himself says a key motive was the hostility some IRS supervisors in the Southwest felt toward the Senator, a leading Hispanic politician.”

Woodward’s story even made People magazine in December 1975. “Montoya, protesting the charge is false, says it was leaked by ‘some bastards in New Mexico’ who were angry that he had uncovered mishandling by IRS subordinates of several tax cases involving his constituents.

As to his alleged chumminess with IRS chief Donald Alexander, the senator says: ‘I never talked to Alexander about my returns. I never asked him for a favor, and I never received one.’ Montoya says he would welcome an audit.”

Although the Woodward article noted that there was no evidence that Montoya had evaded taxes or had done anything to halt the IRS investigation, there were plenty of negative headlines and suspicions raised. Montoya lost his re-election the next year to Republican Harrison Schmitt. Montoya died in 1978.

Friday, May 17, 2013

NM Flunks on Reporting Independent Expenditures

The brown states are the ones that received Fs.
NM is actually worse than Texas here.
Yep, we're at the bottom of another list -- The Institute of Money in State Politics' recent survey of independent spending disclosure requirements.

True, 25 other states received F grades in this survey. But New Mexico was one of only six states that received "perfect" grades of zero in all categories.

What does this mean for the average voter? Basically there's no way of truly tracking how much money is being spent in elections and no way of knowing who is paying for all the attack ads and nasty campaign mailers you find in your mailbox.

"There oughtta be a law..." you might you say?  Well, that's the point.

For three legislative sessions Sen. Peter Wirth, D- Santa Fe carried a bill that would have required reporting independent expenditures -- including who had contributed to the independent groups.

The bill always passes the Senate with bipartisan support (unanimously the past two sessions) but gets bogged down in the House.

Wirth blames "very power special interests" from both sides of the political spectrum for killing the bill each year. As he told the Institute, "It’s bipartisan support in the open, and then behind the scenes it’s full-on bipartisan opposition.”

Here's the article by the Institute that quotes Wirth. And here's my story in today's New Mexican.

Tuesday, May 14, 2013

Lucky Will Run Again

Rep. Luciano "Lucky" Varela, who has represented House District 48 in Santa Fe since 1987, just told me he'll be running again next year.

"I'm feeling strong," Varela, 78, said. "I'm feeling good about serving another term."

Towards the end of this year's legislative session, Varela was hospitalized after he collapsed and was unconscious for about 20 seconds in his office. He later said doctors thought he might have had a reaction to blood pressure and allergy medications. He returned to the Roundhouse for the end of the session.

Varela  is the chairman of the Legislative Finance Committee and vice chairman of the House Appropriations Committee. The chairman of that panel, Rep. Henry "Kiki" Saavedra, D-Albuquerque, announced this week that he wouldn't seek another term.

Varela said he thinks he would do a good job as chairman. "But it's all up to the Speaker," he said. The Speaker of the House appoints all committee chairs.

Daisy Kupfer: 3 Years for Tax Evasion

Elizabeth "Daisy" Kupfer, who once worked for the state Attorney General's Office, was sentenced today to three years in federal prison for tax evasion in a case involving the theft of more than $2.5 million in federal election education funds through a contract with former Secretary of State Rebecca Vigil-Giron's office.

In a news release, U.S. Attorney Ken Gonzales said, “In this case, Mrs. Kupfer intentionally concealed over $750,000 of income." She was ordered to pay $288,339 in restitution to the IRS.

Earlier this year Kupfer's husband, Joe Kupfer, a former lobbyist, and political consultant Armando Gutierrez, 65, of Corpus Christi, Texas were found guilty of multiple charges including conspiracy and theft of government property.

Vigil-Giron hired Gutierrez to produce voter-education TV ads. He received more than $6 million in federal election money from 2004 to 2006. But prosecutors contended he could not account for more than $2.5 million of work under his contracts.

Gutierrez paid Kupfer's company $746,375, the government said, but never produced any documentation for hiring the company.

Vigil-Giron initially was indicted in the case, which originally was in state court. However, the charges against her eventually were dismissed.

Joe Kupfer and Gutierrez have not been sentenced yet.

Back to Work

I was gone for a little more than a week, but I'm back in the saddle again.

It appears that I didn't miss that much while I was gone.

No huge scandals broke. Nobody new announced they were running for governor.

But here's a few tidbits to ponder.

* The Nation, a national progressive publication, did a glowing piece on U.S. Sen. Martin Heinrich.


Heinrich, aged 41, isn’t typical Senatorial material. In a Congress whose members have an average net worth of almost one million dollars, according to an article published in U.S. News and World Report in January, New Mexico’s junior senator, who was the first member of his family to attend college, has a net worth of a little over $50,000, making him the fifth-poorest Senator on the Hill.


The article also points out that Heinrich is the third youngest member of the Senate.

* Common Cause New Mexico is working on a report on lobbying in the state legislature. The full report is due in July, but this week the organization released figures on the total amount that lobbyists and their employers spent to "influence, entertain and feed New Mexico legislators" was $488,296.74.

Former state Sen. Dede Feldman, D-Albuquerque, who is one of the people working on the Common Cause report has more on her blog.

* The state Republican Party seems nervous about Sen. Tim Keller, who hasn't announced he's running for governor, but isn't discouraging his supporters from making noises about a possible run.

This video identifies Keller as an "extreme left-wing radical."



This could get fun. New Mexico Watchdog has more.

Sunday, May 5, 2013

ROUNDHOUSE ROUNDUP: Changing of the Guard for State Dems

A version of this was published in The Santa Fe New Mexican 
May 5, 2013


Newly elected state Democratic Party Chairman Sam Bregman wants to beat Mayor Richard Berry in the upcoming Albuquerque city elections. He wants to beat Gov. Susana Martinez and Secretary of State Dianna Duran in next year’s general election.

Alex Bregman at bat
But late last week, Bregman was hoping the Louisiana State University Tigers would beat the Florida Gators in baseball.

Bregman, fresh off his hard-fought victory for state party chairman, took some time off to fly to Louisiana to watch his son Alex Bregman, once a high-school baseball star, now a freshman shortstop — and leading hitter — for LSU.

“You Google his name and you’re going to see more hits for him than for his father,” the elder Bregman said in a telephone interview Thursday.

Bregman was elected party chair April 27 by a 2-to-1 margin by the Democratic State Central Committee in Las Cruces. He took over from outgoing Chairman Javier Gonzales, who didn’t seek a third term.

Though he was relaxing in Louisiana, earlier in the week he appointed a “transition team” that includes director of party affairs Callan Martinez, field operations and elections director Scott Tillman, director of legislative affairs Angie Poss, general counsel Robert Lara, organized labor liaison Michelle Mares, and communications and rapid response director David Harwell.

Sam Bregman
(A word about Harwell: I called him last week, left a message and he indeed responded rapidly.)

Bregman said he will be appointing a fundraising team for the party very shortly.

He also said he had a conference call with all 33 Democratic Party county chairs early in the week to talk about his “33-county strategy” for 2014.

Bregman, a lawyer and former Albuquerque city councilor, has earned the reputation of being forceful and aggressive. This should be a contrast to the more laid-back and behind-the-scenes style of Gonzales.

But in addition to a change in style, the state Democrats might be getting a change in structure as well.

Asked when he’ll appoint an executive director for the state party, Bregman said he’s not sure he’s going to appoint one. “I’m going to focus on shoring up the party — our fundraising, our social media abilities, getting detailed analysis of all precincts — before I rush to name an executive director.”

Fact check: It looks like Bregman was right about that Google thing. I used the search engine to look for “Alex Bregman” and got 30,300 results. For “Sam Bregman,” only 9,460 results. And just to rub it in, on Twitter, Alex has more than 3,200 followers, while Sam has only 151 on his @samforchair13 account.

Speaking of Dem executive directors: Scott Forrester, who held that position for the past several years, told me weeks ago that he’d be leaving that position as soon as Gonzales’ term was up. Forrester’s new job, he said, would be heading up his own political consulting firm. Sure enough, last week I got the first press release from Bosque Strategies. It was announcement for Albuquerque City Council candidate Klarissa Pena.

I spoke with Forrester the next day and he told me he might be working in the Santa Fe city elections also.
There's also a new "Draft Javier
for Mayor" Twitter account

This was the day that Mayor David Coss announced that he won’t be seeking re-election. Only hours later, I received my second email from Forrester on his Bosque Strategies account.

This one was on behalf of his old boss, Gonzales, offering words of praise for Coss. But that was just the first paragraph. The second, slightly longer paragraph talked about Gonzales’ love for Santa Fe and how he was born and raised here.

He then spoke about the “encouragement I’ve received regarding a mayoral run” but demurred about his intentions, saying only, “Now we need to focus on our gratitude for Mayor Coss’ service.”

I think it’s pretty obvious that Gonzales might be running for the job.

NOTE: I'm on vacation this next week, so barring any major political developments in New Mexico I probably won't be posting on this blog until I get back, Tuesday, May 14.

Friday, May 3, 2013

Domingo Running for State Auditor

Domingo Martinez

County Assessor Domingo Martinez, a former state auditor, is running for that position again.

Martinez, who is finishing his second term as assessor, served two four-year terms as state auditor beginning in 1999.

Martinez has the distinction of being the first public official to find evidence suggesting corruption in former state Treasurer Robert Vigil.

During his first term as auditor, Martinez ordered an audit of Vigil's years as state auditor in the 1990s. That audit uncovered possible violations of state laws, including the filtering of money to a former assistant through an accounting company and money being given to a nonprofit group headed by Vigil’s wife.

State police forwarded the investigation to the FBI, with the state police chief saying Martinez's audit " "strong patterns of public corruption" during Vigil's tenure. But no charges were filed.

Vigil, who went on to be elected state treasurer in 2002 despite the bad publicity from Martinez's audit report, dismissed the audit was the result of a "vendetta" by Martinez. But before Vigil's first term in office was over, he was indicted on federal corruption charges (unrelated to the findings in Martinez's report) and eventually served time in prison.

Current auditor Hector Balderas is running for attorney general. He couldn't seek re-election as auditor due to term limits.

Check tomorrow's New Mexican for more    information.

Thursday, May 2, 2013

Javier Won't Say If He's Running For Mayor ... But He DOES Love Santa Fe

Javier Gonzales Calling Meeting to Order
Javier Gonzales
Following Mayor David Coss' announcement this morning that he won't be seeking re-election, there has been some speculation whether Javier Gonzales -- who just last week finished his term as state Democratic chairman -- will run for the office once held by his dad, George Gonzales.

After all, just last month Gonzales told me that he'd be considering running for elected office.

Earlier this afternoon, Gonzales released a statement thanking and praising Coss for his years as mayor. His statement concluded:

I love our city. I was born and raised here and believe we have a bright future. I appreciate the encouragement I've received regarding a mayoral run but now we need to focus on our gratitude for Mayor Coss' service."
Hmmm. Doesn't sound like a guy not running for mayor.

Check out the New Mexican tomorrow for more on Coss' decision by my colleague Julie Ann Grimm

Tuesday, April 30, 2013

Keller's Not a Candidate for Gov, But He Sure is Talking Like One

I couldn't help but notice a tweet today from Justine Freeman, who worked as a flack for the Senate Majority Whip's office -- the whip being Sen. Tim Keller -- during this years legislative session.

It was a link to a Duke City Fix story with the headline "The Six Reasons Tim Keller Will Run for Governor." Freeman altered the headline slightly in her tweet: "The Six Reasons Tim Keller Will (and should!) Run for Governor" (exclamation point hers.)

O.K., you might dismiss that as an over-enthusiastic tweet from a faithful employee. But listen to Keller's speech from the state Democrats' central committee meeting on Saturday.

Keller says he's also considering running for state treasurer or state auditor. But he sure doesn't spend much time talking about the treasurer or auditor's office in this speech.


It's Official: Hector's In for AG

Hector Balderas Running for SenateTo absolutely nobody's surprise, state Auditor Hector Balderas has made it official. He's running for attorney general.

In a letter to supporters, Balderas wrote:

My number one goal as Attorney General will be keeping our families safe. I’ll protect our children and consumers, fight as hard for our Veterans as they fought for us, and ensure that we stop discrimination based on gender, sexual orientation, race, religion, or disability, so that all can pursue the opportunity to thrive. I will also improve and promote greater accountability in the nonprofit and corporate sectors so that all New Mexicans can enjoy a better quality of life

This is what you call your basic "soft" announcement. Balderas said "This fall we’ll have a big campaign kick-off where I’ll more fully articulate my vision for how New Mexico’s Attorney General’s office can move our state forward."

He urged prospective supporters to sign up for news alerts on his website.

Balderas might be facing former Public Regulation Commissioner Jason Marks, a lawyer from Albuquerque in the Democratic primary. He's got a campaign website, but he told me Tuesday afternoon that his campaign is still in "exploratory" mode.

"I'm definitely out there talking to Democrats," Marks said. He said he'll make a final decision in about a month.

UPDATED 2:13 pm. After talking with Marks, I changed the original text to make clear that he has not announced yet.