New Mexico Gov. Bill Richardson puts on a smile as he leaves a news, Monday, Jan. 5, 2009 in Santa... 
(AP)
Gov. Bill Richardson's gold-plated resume had never been tarnished as he moved up the political ladder from congressman and diplomat to governor.
But a day after backing out of consideration for U.S. commerce secretary, Richardson faced a murky political future as a grand jury probed a possible pay-to-play deal involving one of his big political donors.
Among the looming questions: Was a $1.5 million state contract awarded to that California donor in exchange for political contributions? And if so, how close was Richardson or his staff to any illicit dealmaking?
Richardson, who has hired a prominent white-collar attorney to represent him in the probe, declined to comment on the scandal Monday citing the ongoing investigation.
He has maintained he would be cleared in a grand jury probe, and said that stepping down from the Obama administration had pained him.
"Yesterday, I was hurting over this decision," Richardson said Monday. "I lost a Cabinet appointment."
"While this decision was a difficult one, I think it was the right thing to do," Richardson said.
The inquiry is centered on Beverly Hills-based CDR Financial Products and its chief executive David Rubin. Rubin and CDR contributed $100,000 in 2003-2004 to Richardson political committees before and after CDR won a state contract to help finance $1.4 billion for highway and transportation projects.
The largest donation, $75,000, was given less than two weeks before a state board made a deal with the company to reinvestment bond proceeds. The company earned more than $443,000 in fees.
In a statement issued Sunday night, Rubin said CDR "adamantly doesn't practice pay-for-play under any circumstance on any playing field."
CDR was hired to be part of a team of banking, investment and financial advisers selected by the New Mexico Finance Authority to assemble a complex bond financing deal for a highway and transportation construction program. The Finance Authority is a quasi-public agency that issues bonds and provides other financing to state and local governments.
