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625 Silver Ave SW Ste 320 ABQ NM 87102 | ProgressNowNM.

org

May 29, 2014

Secretary of State Dianna Duran
State Capitol
Santa Fe

RE: Complaint: Patrick Davis, regarding: Governor Susana Martinez, Sen. C. Brandt,
Sen. M. Moores, Sen. L. Torraco, Rep. A. Baldonado, Rep. K. Fajardo, Rep. J. Harper
and Rep. T. McMillian


Madam Secretary:


In response to our complaint regarding violations of New Mexico finance rules during the prohibited
period, Mr. Velarde of your office wrote to us on April 14, 2014:
“… [w]e have also verified that, the campaign links donations (sic) are inactive. Absent
additional evidence or other pertinent information you may provide, we are closing our file
on this matter.”

As you may recall, the initial complaint came as a result of your office’s inquiry into third party
solicitation websites by some state legislators during the session, a prohibited fundraising period
for members of the legislature and governor.

Our initial complaint to your office pointed to similar fundraising solicitation links which were
publicly available for the elected officials listed above. Mr. Cole’s inquiry which prompted the initial
investigation centered on whether any web-platform or page which facilitated a fundraising
transaction between a campaign and donor constituted a violation of state finance laws your office
is charged with enforcing.

In response to your office’s investigation, Ms. Sousa of the Martinez campaign who wrote to you on
February 21, 2014 that “The Piryx account that appeared to be accepting contributions is in no way
affiliated with the Martinez campaign, or PAC, and we have no control over it.”

While Mr. Velarde notes that your office ‘verified’ that the Piryx links are inactive, finance reports
filed with your office the very day he issued his letter show contributions through and payments to
Piryx for fundraising services throughout the prohibited period. The reports maintained and
published by your own office seem to directly contradict the statements by the candidates.

As an example, despite her statements disavowing any ‘affiliation’ with or ‘control’ of Piryx for
fundraising, reports submitted to your office on April 14 show that the Martinez campaign paid
Piryx 20 separate times for “processing fees” totaling more than $7,200 during the prohibited
period.



625 Silver Ave SW Ste 320 ABQ NM 87102 | ProgressNowNM.org

As a user of Piryx for your own campaign, I am certain you are aware that Piryx fees are assessed
as donations are accepted and processed.

Further, applying the Piryx fee structure (published online) to the Martinez campaign report would
indicate that during the first week of the prohibited period alone, the campaign raised more than
$36,500 online through the online credit-card processor, Piryx ($2,288 in fees paid to Piryx). The
campaign reported raising $79,913 that week.

Equally notable is the timing and nature of the payments to Piryx. Payments by the Martinez
campaign to Piryx happen in some big bursts with declining amounts ($2,104 in one case, followed
by $876 the next day and $104 the next). Candidates like yourself and development professionals
know that is the tell-tale sign of an online contribution ask: A big instant response the first day, a
smaller response the second day from late email openers and declining success for the next two
days until most everyone has checked their email and responded by the fourth or fifth day.

Respectfully, it appears that your investigation which ‘verified’ that the campaigns were not using
Piryx pages to solicit campaign contributions was grossly incomplete and failed to consider
evidence maintained by your own office.

In response to Mr. Velarde’s letter, I am requesting that your office consider additional evidence
(that being the reports maintained and published by your office) to inquire of Ms. Martinez’s
campaign about the discrepancies between their statement to you and the information published in
their own campaigns.

Respectfully,

/s/


Patrick Davis
Exec. Dir.


cc: Billy Velarde