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New Mexico Secretary of State Pleads Not Guilty

Embattled Secretary of State Dianna Duran entered not-guilty pleas Tuesday to charges that she diverted thousands of dollars from her campaign funds to her personal bank accounts, mostly during a stretch when she withdrew prolific amounts of money from automatic teller machines at casinos around the state.

By Steve Terrell

Embattled Secretary of State Dianna Duran entered not-guilty pleas Tuesday to charges that she diverted thousands of dollars from her campaign funds to her personal bank accounts, mostly during a stretch when she withdrew prolific amounts of money from automatic teller machines at casinos around the state.

It was the first public appearance by Duran, the state's second-highest-ranking Republican, since state Attorney General Hector Balderas filed a 64-count criminal complaint against her more than two weeks ago. The charges astonished all sides of the state's political landscape and have called into question Duran's stewardship of New Mexico's campaign finance system.

Duran, 60, sat silent during her arraignment hearing as her lawyer, Erlinda Johnson, entered the not-guilty pleas and argued several motions to strike all or some of the counts. First District Judge T. Glenn Ellington of Santa Fe denied all of them.

At the end of the hearing, Duran exited the courthouse through a back door, declining to answer reporters' questions as she got into her lawyer's car.

She apparently went from the courthouse to her office a few blocks away. This was the first time she's been in the office since being charged. Her chief of staff, Ken Ortiz, said Duran came in for about an hour and a half after her court appearance.

Ortiz described her return as "uneventful," saying Duran and staff members discussed upcoming election deadlines and the candidates' guide for next year's elections. Though county clerks run elections in New Mexico, the secretary of state oversees enforcement of election laws and campaign finance reports.

Duran makes $85,000 a year.

Ellington scheduled Oct. 30 as the starting date for Duran's preliminary hearing, but said it could be delayed until early December, depending on which motions are filed. After the preliminary hearing, the judge will decide if the attorney general has established probable cause for Duran to stand trial.

Assistant Attorney General Joe Spindle said the state would present more than 20 witnesses against Duran at the preliminary hearing. He predicted that hearing would last about a week. Some of the witnesses include Duran's family members and employees of the Secretary of State's Office. Ellington instructed Duran not to talk to any potential witness about the case.

In addition to the criminal charges against her, Duran also is facing possible impeachment by the state House of Representatives.

In the defense motions, Johnson asked the judge to dismiss a count of identity theft against Duran because it allegedly took place in the spring of 2010. Johnson said this was beyond the five-year statute of limitations. But Ellington sided with Spindle's argument that the clock starts on the statute of limitations when the alleged crime is discovered, not when it occurred.

In that count, Duran is accused of making a $600 payment to a Tularosa man named Sean Davis, but actually funneling the money into her own checking account.

Davis told investigators for Balderas that he didn't work for Duran's campaign and never received the check, even though his name was signed to it, as was Duran's.

Duran also lost motions to dismiss the case because Balderas did not personally sign the complaint, and because it was filed in Santa Fe County, not the counties where Duran's alleged crimes were said to have taken place. The Secretary of State's Office and staff are headquartered in Santa Fe.

Ellington released Duran on her own recognizance with several conditions, including orders that she stay out of casinos and not drink alcohol.

A spokesman for the attorney general said after the hearing that prohibiting alcohol and drug use is routine for conditions of release, even for white-collar criminal cases such as Duran's.

However, the condition regarding casinos was crafted for this particular case. Balderas alleges Duran made thousands of dollars in withdrawals at automatic teller machines in casinos around the state during the time she was being investigated by the attorney general for malfeasance involving campaign funds. Her total cash withdrawals at casinos exceeded $400,000 during 2013 and 2014.

Ellington said Duran will be allowed to leave the state on official business but must notify him before doing so.

He denied the prosecution's request to forbid Duran access to public money. He said she will be allowed to do her duties as secretary of state, but that she should involve other employees if there is a need to access state money.

Ortiz said the office already has safeguards and procedures about spending money in the secretary of state's budget. All purchase orders have to go through the office's chief financial official, then be approved by the Department of Finance and Administration. The only state money in the office is a petty-cash fund used for giving change to those paying filing fees to register corporations.

Duran's not-guilty pleas indicate she intends to fight the charges brought by Balderas, a Democrat. The allegations point to relatively small sums of money being diverted from her campaign funds -- about $13,000 in all. But Balderas alleges that Duran frequently shifted money between accounts to cover overdrafts in the checking account she shared with her husband, Rosaleo "Leo" Barraza. Balderas also alleges that the amount of money Duran withdrew from cash machines at casinos far exceeded her annual income and that of her husband, a retiree.

(c)2015 The Santa Fe New Mexican (Santa Fe, N.M.)

Caroline Cournoyer is GOVERNING's senior web editor.
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