N.M. secretary of state charged in cash misuse
SANTA FE, N.M. — New Mexico’s Democratic attorney general on Friday charged Republican Secretary of State Dianna Duran with embezzlement, fraud, money laundering and campaign finance violations.
Attorney General Hector Balderas’ office filed the 64-count complaint late Friday in state district court in Santa Fe. Balderas did not make a statement nor hold a news conference to announce the complaint against Duran, one of the highest-ranking Republicans in the state.
Balderas spokesman James Hallinan said the office would not be releasing any information beyond the court filing. “Our office will proceed transparently by way of preliminary hearing,” he said.
Duran and her spokesman did not immediately return phone and email messages seeking comment. It wasn’t known whether Duran had an attorney.
The attorney general’s investigation stemmed from a confidential tip received in July 2014. Duran was accused of funneling contributions intended for her campaign into personal accounts for her own use.
According to the complaint, the investigation centered on deposits of large amounts of cash as well as campaign contributions into both personal and campaign accounts controlled by the secretary of state. The movement of money often culminated with cash expenditures at casinos throughout the state, the complaint states.
Investigators obtained subpoenas for multiple casinos where Duran withdrew cash. Records show those electronic debits totaled more than $282,000 in 2014 alone. Another $147,641 was withdrawn the previous year.
The complaint also cites a series of detailed bank transactions as well as donations from supporters, and questions her campaign finance reports.
In addition to the felony and misdemeanor embezzlement and money-laundering charges, Duran also faces counts of tampering with public records, conspiracy and violating the state’s Governmental Conduct Act.
“Dianna J. Duran did use her powers and status as a public officer, employee and office of the Secretary of State to obtain personal benefit or pursue private interests, conduct herself in a manner that did not maintain the integrity, ethics, responsibilities of public service,” the complaint states.
Republican Gov. Susana Martinez said she has talked with Balderas about the charges against the secretary of state.
“These allegations are deeply troubling and concerning, and all relevant state agencies have and will continue to assist the Attorney General throughout the process,” Martinez said in a statement. “It’s important that New Mexicans understand that no one is above the law and that every New Mexican is treated equally under our system.”
Balderas and Duran have been sparring over campaign finance reports for months. In February, the two announced a joint task force to study the reporting and enforcement of campaign finance laws. But just months later, Duran accused Balderas of submitting three late campaign finance reports during his time as state auditor.
Balderas called the allegations incorrect and said they highlighted flaws in the state’s reporting process. He said at the time that he was concerned about the integrity of the data and records at the secretary of state’s office.