Bill Richardson, Obama's appointee for Secretary of Commerce, is now being investigated by a grand jury for allegedly giving California firm CDR Financial Services a lucrative government contract in exchange for campaign donations.

The panel is looking into possible "pay-to-play" dealings between CDR Financial Products and someone in a position to push the contract through with the state of New Mexico.

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Grand Jury Investigation into Richardson Donor Heats Up

By Carol D. Leonnig
A federal grand jury is investigating how an investment company won more than $1.5 million in work advising the state of New Mexico after making contributions to the political action committees of Gov. Bill Richardson, President-elect Barack Obama's choice to be commerce secretary.

The "pay-to-play" investigation is looking at whether the governor's office played a role in the the hiring of CDR Financial Products -- and the probe is in a highly active stage, two sources familiar with the matter said. Tomorrow in Albuquerque, the grand jury is expected to hear testimony from several witnesses, including officials at J.P. Morgan, who worked with the state and CDR on the state's investments, and from Richard's political action committee, the sources said.

The FBI and federal prosecutors are focused on how the Beverly Hills-based CDR won lucrative fees from the New Mexico Finance Authority in 2004 very soon after donating $100,000 to Richardson's efforts to register Hispanic and American Indian voters and pay for expenses at the Democratic National Convention in 2004, according to the sources. FBI agents have already asked numerous witnesses whether the governor's aides were involved in CDR's hiring.

Richardson's spokesman and the U.S. Attorney's office in New Mexico declined to comment on the probe, which began earlier this summer. So far, several board members at the N.M. Finance Authority have publicly confirmed being interviewed about CDR's hiring.

http://voices.washingtonpost.com/the-trail/2008/12/15/grand_jury_investigation_into.html