Independent Source PAC

Protecting working families by investigating and exposing the actions, agendas, and hypocrisy of the political Right.

12/15/11

Ms. Carol K.O. Lee Special Agent in Charge Federal Bureau of Investigation 4200 Lueking Park Ave NE Albuquerque, NM 87107 By Fax: (505) 889-1770 RE: Dear Ms. Lee: On November 21, 2011 we submitted a written request to the US Attorneys Office asking for an investigation into the selection process involving the award of a contract by the State of New Mexico to the Downs at Albuquerque. On December 6, 2011 Kenneth Gonzales, the US Attorney for New Mexico, sent a letter stating that the request had been forwarded to your office. This letter is to provide additional information to your office that has been developed through our investigation since the initial request was made to the US Attorney. William C. Windham and John Turner, the Louisiana based majority co-owners of the Downs at Albuquerque contributed an additional $10,000 (on top of the $70,000 listed in the letter requesting an investigation) to Susana Martinez after she was elected governor and prior to the bidding process for the 25year contract worth hundreds of millions of dollars. These contributions were made through a corporation Brazos Land & Cattle, Ltd. Co. -- $5,000 on 12/30/10 and $5,000 to SusanaPac in May 2011 (less than three months prior to the bid process). Windham and Turner operate Turner Windham, LLC, a Louisiana based company who received free and clear ownership of Brazos Land & Cattle, Ltd. Co., through a bankruptcy court order in Louisiana on August 19, 2010. (In Re Debtor: Harold L. Rosbottom Jr. US Bankruptcy Court Western Dist. Of Louisiana Shreveport case 09-11674). As of December 9, 2011, neither Windham nor Turners names were listed in the New Mexico PRC corporations database as owning or operating Brazos Land & Cattle, Ltd. Co. Charles Chuck Gara, (who Martinez hired in February 2011 to a $91.998 per year position with her administration and who had contributed $1500 to Darren White a member of the Downs bidding teams congressional bid) one of three RFP evaluators personally selected by Susana Martinez, scored the Downs at Albuquerque a maximum score of 300 for Managerial Expertise. He gave them a perfect score despite the following widely known information: The Downs at Albuquerque management had only recently come off of a one-year probation period due to a settlement agreement reached with the NM Racing Commission implemented in March 2010 for failure to release purse money for certain races. The New Mexico Gaming Commission has substantiated over 10 complaints against the Downs at Albuquerque management for committing an unsuitable method of operation and for violating board rules. In March 2011, the Downs signed a settlement agreement with the Gaming Commission that included a $5,000 fine on top of a 2007 settlement agreement that carried a $20k fine. The New Mexico Horsemans Association cautioned against awarding a contract to the Downs management team, to the same group that has overseen the deterioration of the existing facility.
Independent Source PAC - Phone (505) 250-0244 - 11024 Montgomery Blvd. NE # 128 - Albuquerque, NM 87111

Additional Information Pertaining to Request for Criminal Investigation into Pay to Play and Bid Rigging

Issues under investigation by the New Mexico Legislative Finance Authority including 1) The Downs of Albuquerque had not paid the NM State Fair full payment on its existing lease, 2) The Downs had underpaid the State of New Mexico $215,000 in revenue received from horseracing, and 3) The Downs had not met its obligation to spend $420,000 to help with marketing on behalf of the State Fair. Windham and Turner previously operated the Orleans Regional Hospital a Medicaid funded psychiatric hospital in Louisiana. Windham and Turner decided to shutter the hospital. However, just prior to doing so, they paid themselves $1.5 million in cash, but then in violation of federal law failed to give their employees adequate notice of the closing. Windham and Turner were sued in federal court where they were ordered to pay over $600,000 in back wages to their former employees as well as legal fees. Based upon these known issues it is clear that Gara inflated the managerial expertise score for the Downs. The Downs received only 15 points more than the other bidder and a non-inflated Managerial Expertise score would have led to the other bidder having been selected. Governor Martinez has invoked Executive Privilege rather than disclose public documents pertaining to her selection of Charles Chuck Gara to the evaluation committee. Alternatively, the Martinez Administration has stated they have no documents or communications that pertain to evaluators. Gara served as the Chairman of the evaluation committee. After the State Fair withdrew a vote on the proposed lease for the Downs when it was clear the vote would fail, Kenneth Buster Goff, a State Fair Commissioner, was specifically asked for what changes he would need to see in the proposed lease to get him to change his vote from no to yes. No other commissioner was offered that same opportunity, in fact they were told that they were permitted only to cast a yes or no vote and that no amendments would be made to the contract. Goff notified the State official what changes he needed to change his vote and those changes were made. Goff then switched his vote. State officials and attorneys for the Downs discussed a request for public records received just prior to the vote. Despite state law prohibiting the questioning of the reason behind an IPRA request and the identity of a requestor, the State officials and the attorneys for the Downs discussed the sourcing of the IPRA. Patrick Rogers, an attorney for the Downs, advised the State officials not to produce those public records until after the entire process was completed and the contract was a done deal. The State followed his advice. (It should be noted that Patrick Rogers and Mickey Barnett, a lobbyist for the Downs, were implicated in the US DOJs investigation into the improper political firing of US Attorney David Iglesias). A member of the NM Attorney Generals staff had notified State officials that the State Fair Commissioners should be given documents to review well in advance of their votethat was not done. State officials and attorneys for Downs created a letter to submit to the NM Board of Finance to be placed onto the November 15th agenda in order for the Board of Finance to vote on the contract. The letter was given to the Board of Finance on October 25, 2011. The letter implied that the lease was a done deal despite the fact that the State Fair Commissioners had not yet been asked to meet to cast a vote. The request for a vote at the Board of Finance had to be rescinded when it was determined that the Commissioners were prepared to vote against the contract. Emails between the attorneys for the Downs and the State officials indicates that Patrick Rogers had already discussed with the Governors office the day before the letter requesting the Board of Finance vote was submitted to the Board of Finance. Governor Martinez chairs the Board of Finance. Regarding the October 25th letter, Traci Wolfe, an attorney for the Downs who is also an officer of the Downs, wrote in an email that day, The letter states that the RFP has been awarded to the Downs. It was my understanding that it wont (sic) technically be awarded until such time as the lease is approved by State Fair Commission and BOF. I am worried that language stating that it has already been awarded may cause some problems. Sincerely,

Michael Corwin Executive Director

Independent Source PAC - Phone (505) 250-0244 - 11024 Montgomery Blvd. NE # 128 - Albuquerque, NM 87111