A special agent for the New Mexico Attorney General’s Office filed a criminal complaint in First Judicial District Court Friday charging Secretary of State Dianna Duran with felony identity theft for allegedly falsely identifying a former state senator as the treasurer of her 2010 campaign for Secretary of State and using his name on official documents.

The charges stem from a Sept. 27 article in the Santa Fe New Mexican in which former state senator Don Kidd, who Duran listed as treasurer for her 2010 campaign, told the reporter he had never worked in any capacity as treasurer for her 2010 campaign.

“If she listed me, she did it on her own,” Kidd told the New Mexican. “I didn’t sign any checks or pay any bills for her, and that’s what a campaign treasurer does.”

Kidd is the CEO and Chairman of the Board for Western Commerce Bank in Carlsbad. He served as District 34 Senator from 1993-2005.

Agents for the AG’s Office contacted Kidd after reading the New Mexican article. He told agents he had not worked with Duran since about 2004 when they served in the state Senate together.

Campaign reports for Duran’s 2010 campaign lists Kidd as her treasurer, but Kidd told investigators that the address and phone number listed were not his and that a Wells Fargo bank allegedly associated with his name in the report did not exist, as he had never had a Wells Fargo bank account.

Kidd did tell investigators he had contributed to the campaign but that that had been his only involvement.

AG’s Office agents say there were 10 campaign reports for Duran’s 2010 campaign that list him as treasurer, which Kidd again said was false.

Nine of the campaign reports were filed in 2010 and the 10th was filed in Oct. 2013, saying the remaining balance from the 2010 campaign would be transferred to Duran’s 2014 campaign account.

When the AG’s Office cross-checked the reports with bank statements, they found more than 100 transactions totaling more than $10,000 that were never listed as expenditures by her campaign, according to the criminal complaint.

When asked why he thought Duran would use his name as treasurer for her campaign, Kidd told agents, “I have no idea. I just don’t know, that’s amazing.”

Duran also faces 64 separate charges related to her campaign finance reports, including embezzlement and fraud, after a separate investigation by the AG’s Office revealed she allegedly transferred thousands of dollars from campaign accounts to personal accounts while gambling at state casinos.

She has pleaded not guilty to the 64 charges.

The AG’s Office filed a motion in district court late Friday that seeks a penalty enhancement in that case because of her status as a public official.

She could pay up to $500,000 in fines if the motion is granted and she is convicted.

This story first appeared at KOB.com

The Office of the Attorney General of New Mexico will no longer give Secretary of State Dianna Duran’s Office legal advice or representation and has returned 31 campaign finance civil complaints to Duran’s office.

Attorney General Hector Balderas notified Duran and her office in a letter Tuesday that his office will essentially no longer work together as a criminal case against Duran remains pending.

KOB requested and received a copy of the letter Tuesday evening.

The AG’s Office filed a criminal information and complaint Aug. 28 charging Duran with 64 counts, including embezzlement and fraud, for allegedly using campaign accounts to reimburse her personal accounts while gambling at casinos across the state.

“Beginning immediately, the SOS will need to seek other legal counsel,” the letter reads. “Until OAG resumes its representation of your office, please advise the OAG of any litigation in which the SOS is a party so we can properly commission the attorneys who represent the SOS.”

The Attorney General’s Office provides legal representation for state entities caught up in legal battles and also investigates campaign finance discrepancies that are referred to the office by the Secretary of State’s Office.

“Although not made lightly, I believe that the decision to discontinue our legal representation of the SOS while the criminal proceedings are pending will facilitate the operations of both our offices,” the letter continues.

Duran’s office referred 31 cases of possible Campaign Reporting Act violations to the AG’s Office six days after Balderas filed the criminal complaint and information, according to a spokesman for the AG’s Office.

“In light of the ongoing criminal complaint, I believe the most prudent course is to return the 31 referred matters to the SOS,” Balderas wrote in his letter Tuesday.

Balderas recommended Duran’s office refer the cases to district attorneys.

“Although I understand this may cause some inconvenience for your office, the [Campaign Reporting] Act authorizes the SOS to refer these and other civil matters for enforcement to the district attorneys, as well as to the OAG.”

James Hallinan, Balderas’s spokesman, told KOB those 31 cases do not include a pending complaint against Rep. Antonio “Moe” Maestas, D-Albuquerque, who KOB discovered had misreported or failed to report around $11,000 in campaign contributions.

“The Maestas referral from KOB was received prior to information sent by the Office of the Secretary of State and is still under review by the Office of the Attorney General. We will inform the public of the disposition of this referral once that determination has been made,” Hallinan wrote.

His letter goes on to say that though it may cause “some inconvenience” for Duran’s office, state law allows the Secretary of State’s Office to refer those complaints and other civil matters to district attorneys in the state for them to enforce.

The letter goes on to say that the AG’s Office will withdraw from further participation in pending arbitration between the Secretary of State’s Office and several other people and organizations, including Stand4KidsNM, CHILE-PAC and Stefania Ackerman.

It says that an assistant attorney general will help the Secretary of State’s Office transfer the pending civil matters to a private attorney.

Duran called the move by the AG’s Office political in a statement to KOB sent by her spokesman, Ken Ortiz:

“The Attorney General has created a ‘conflict of convenience’. Although he believes there is no conflict in prosecuting his own client, the Secretary of State, the Attorney General now believes he has a conflict with investigating other candidates and political committees who may be his political friends.”

KOB’s Ryan Luby contributed to this report, which first appeared at KOB.com

New Mexico Secretary of State Dianna Duran and her office are using the same campaign finance rules she allegedly violated to go after a state legislator for his own failure to properly report campaign contributions.

Duran and her office sent a letter to Attorney General Hector Balderas Thursday asking his office to investigate missing money in campaign finance reports filed by state Rep. Antonio “Moe” Maestas, D-Albuquerque. His failure to report thousands of dollars of contributions was first uncovered by KOB’s Ryan Luby in early September.

Balderas filed a criminal information Aug. 28 charging Duran with 64 counts of campaign finance violations, alleging she used thousands of dollars of contributions to pay off gambling debts after spending hundreds of thousands of dollars at New Mexico casinos. She pleaded not guilty to all charges.

Rep. James Roger Madalena, D-Jemez Pueblo, and Rep. Andy Nunez, R-Hatch, also became the subjects of an official inquiry by the Secretary of State’s Office over their use of campaign funds.

Balderas’s Office responded Wednesday to a motion filed Tuesday by Secretary of State Dianna Duran’s attorney, Erlinda Johnson, that asked a judge to extend deadlines for discovery in the case and to push back a preliminary hearing for Duran.

The response from the AG’s Office Wednesday asks the First Judicial District judge presiding over the case to deny Johnson’s motion. A 10-member bipartisan committee is meeting to investigate charges against Duran and consider whether to recommend impeachment for her.

Friday, she assured state residents that her office can fairly enforce campaign finance laws despite the fraud, embezzlement and other criminal charges pending against her.

KOB FIRST UNCOVERS NEW DISCREPANCIES

KOB analyzed Maestas’s campaign finance records and compared them to records from political action committees and lobbyists spending money in New Mexico. The station found six political action committees and four lobbying groups reporting donations to Maestas in the 2014 election cycle.  Among them are PACs representing New Mexico’s physical therapists, realtors, insurance and financial providers, and community bankers.

Altogether, the 10 organizations collectively reported $5,250 of donations to Maestas’s campaign that did not appear in his records as monetary contributions.

4 Investigates contacted the organizations before airing an initial story.  Nearly all of them confirmed Maestas’s campaign cashed their checks.

On Friday, Sept. 4, the day the initial story ran, one of them — Farmers Group Inc. and its Affiliates — told KOB that it erroneously reported a donation to Maestas in the amount of $1,000.  It amended its reports.

Later that day, Maestas emailed KOB to say he amended his legally-required campaign finance reports to account for the previously unreported donations amounting to $4,250.

KOB offered Maestas numerous opportunities to speak on-camera, but he refused.

DURAN’S OFFICE LOOKS INTO DISCREPENCIES

Duran’s letter to Balderas states Maestas met with Duran’s Chief of Staff, Ken Ortiz, Sept. 8  and filed three amended campaign reports. It alleges that after those were filed, it “appears” Maestas continued to amend the reports.

Read the full Campaign Reporting Act here.

The difference between the 2015 April First Biannual report filed April 13 and the amended reports ended up totaling more than $11,000. Duran surmises in her letter to Balderas that Maestas failed to report that $11,169 according to law, making it a false report.

Her letter also contains numerous additional possible violations from his campaign reports and discrepancies with lobbyist reports, though Duran writes that the lobbyist report contradictions cannot be independently verified without an audit.

The letter to Balderas says that under state law, any report that is amended more than 100 days after its filing could carry a maximum $5,000 fine for the politician. It says that all eight of Maestas’s reports fall into that category, theoretically meaning Maestas could face up to $40,000 in fines.

“When our office is made aware of a possible violation of the campaign reporting act, the issue is referred to our Ethics Bureau to conduct a review of campaign reports filed.  During this review, our Ethics Bureau identified several additional possible violations that need to be thoroughly investigated by the Attorney General, which may necessitate a review of Rep. Maestas’ personal and campaign accounts,” Ortiz wrote in a statement to KOB Friday.

Ortiz told KOB the Secretary of State’s Office has referred 22 candidates’ campaign finance reports to the AG’s Office this year, as well as the reports for nine political action committees.

MAESTAS RESPONDS TO DURAN’S FILING

After receiving notice of Duran’s filing Thursday, he sent a letter to her and her office Friday.

“Going to the Attorney General and the media instead of writing to me, in direct violation of state law, calls into question your motives in this matter,” he wrote.

His letter says he worked “side-by-side, in person” with Ortiz on Sept. 8 to “carefully” amend his report under the office’s guidance. It goes onto say that he emailed the Secretary of State’s ethics staff with updated reports the next day and forwarded that email to the Foundation for Open Government, Common Cause and the Albuquerque Journal.

It says he also included his campaign bank account records “so as to eliminate any appearance of impropriety.”

The letter calls her letter to Balderas “very troubling” and says Maestas had not received any correspondence or communication from the Secretary of State’s Office prior to KOB contacting him.

PREVIOUS CAMPAIGN CONTRIBUTION REPORTING ISSUES WITH MAESTAS

In February, the 4 Investigates team found Maestas was more than two months behind in filing his final campaign report of the 2014 election cycle.

“There’s no excuse and it will never happen again,” Maestas told KOB at the time.

He quickly filed the report after KOB contacted him.

“We weren’t trying to hide anything, I just– my campaign didn’t get it done, I take full responsibility,” Maestas said.

In regards to the inconsistent campaign contributions, Maestas sent a statement to KOB earlier this month:

“I want to thank KOB for bringing this issue to my attention and I take full responsibility for any inaccuracies in my reports.  Upon receiving verification from the bank of the dates these checks were deposited into my campaign account, I amended my reports accordingly.”

AG’S OFFICE DISCUSSES DURAN’S REFERRAL

Balderas’s spokesman, James Hallinan, sent KOB a statement regarding Duran’s referral Friday:

“In 2015, this office has not received a referral from the Office of the Secretary of State alleging that a candidate knowingly and willfully violated any provision of the Campaign Reporting Act under the criminal enforcement provisions of Section 1-19-36 of the Act. The 31 matters Mr. Ortiz has identified are administrative and civil in nature, such as the collection of penalties and fines for late filing of campaign reports. These matters are being handled by an assistant attorney general in the office’s Open Government Division assigned to provide legal advice to the Office of the Secretary of State.

The Office of the Secretary of State’s ?referral to our office regarding Representative Maestas cited Section 1-19-34.6 of the Campaign Reporting Act, which authorizes referrals to the Office of the Attorney General for civil enforcement of the Campaign Reporting Act, not the criminal enforcement provision. Of course, regardless of the specific provision under which the referral was made, the Attorney General will thoroughly investigate and follow up on this matter.”

KOB’s Ryan Luby contributed to this report.

The New Mexico Attorney General’s Office responded Wednesday to a motion filed Tuesday by Secretary of State Dianna Duran’s attorney, Erlinda Johnson, that asked a judge to extend deadlines for discovery in the case and to push back a preliminary hearing for Duran.

The response from the AG’s Office Wednesday asks the First Judicial District judge presiding over the case to deny Johnson’s motion for many reasons.

The motion, signed by Assistant Attorneys General Clara Moran, Joseph M. Spindle and Zachary Jones, says Duran and her attorney have not shown good cause for an extension of time for discovery and that Duran’s argument that Johnson does not have time to prepare for the preliminary hearing is invalid according to law.

Duran and Johnson’s motion for more time says “discovery is voluminous and partially outstanding, [Johnson] has a working legal practice in addition to representing Duran, and [Johnson] needs more time to establish a meaningful attorney-client relationship with Duran,” according to the AG’s Office’s response.

The AG’s Office argues that Johnson framed her request for further discovery and an independent investigation “as though she is preparing for trial, rather than a preliminary hearing.”

In Duran’s case, the preliminary hearing will determine whether there is probable cause to proceed to trial.

She is charged with 64 counts, including fraud and embezzlement, in a criminal information filed by Attorney General Hector Balderas that alleges she used campaign contributions to help pay off gambling debts.

New Mexico law appears to agree with the AG’s Office in its response that Johnson should not be allowed more time for discovery, saying the right to discovery before a preliminary hearing “is limited to what is available and in the prosecutor’s immediate possession.”

The AG’s Office argues that Johnson appears to be preparing for trial rather than a preliminary hearing.

Johnson brought the issues up at Duran’s Sept. 15 arraignment, at which she pleaded not guilty to the charges.

“They’ve had over a year to prepare,” defense lawyer Erlinda Johnson complained about the prosecution. “Obviously they were prepared. I just received this discovery last week – talk about an ambush! I would respectfully request, Your Honor, that the court would extend the deadline.”

“60 days is plenty of time for any attorney to become adequately advised as to what the allegations are,” said assistant Attorney General Joe Spindle at the arraignment. “We think that there is no reason to extend it further out than that.”

The judge agreed with the prosecution that day, saying the preliminary hearing should be held within 45 days, to be completed by the end of the first week in December. Prosecutors said they will need about a week to present the case against the Secretary of State. Johnson said it was too early for the defense to provide an estimate for how much time they will need.

Duran was finally back at work Tuesday and spoke with KOB, saying her office is busy preparing for upcoming elections.