ALBUQUERQUE, N.M. (AP) - A former state senator and three other people were charged with corruption Thursday in a highly politicized case that a former federal prosecutor told Congress he believes led to his firing.
A federal grand jury accused former New Mexico Senate President Pro Tem Manny Aragon and the others of conspiring to skim $4.2 million in public funds meant for construction of a county courthouse.
David Iglesias, one of eight U.S. attorneys fired late last year, told Congress this month that he rejected what he believed to be pressure from U.S. Sen. Pete Domenici and U.S. Rep. Heather Wilson, New Mexico Republicans, to rush the indictments, which would have hurt Democrats in the November elections.
Spokesmen for Domenici and Wilson, who was in a hotly contested race at the time, said Thursday they would have no comment on the indictments.
The firing of Iglesias and the other prosecutors has blown up into a scandal that has spawned calls for the resignation of U.S. Attorney General Alberto Gonzales.
Assistant U.S. Attorney Jonathon Gerson in Albuquerque said the 26-count indictment handed up Thursday stemmed from an investigation that has lasted more than a year.
'We handled this as we would have handled any other case,' Gerson said. 'We handled this matter professionally without attention being paid to outside influence.'
Charged with conspiracy, mail fraud and money laundering Thursday were Aragon; former metro court administrator Toby Martinez; Raul Parra, a partner in Albuquerque engineering firm P2RS; and software consultant Sandra Mata Martinez, Toby Martinez's wife.
Architect Marc Schiff; former Albuquerque Mayor Ken Schultz, who was a lobbyist for Schiff's firm; and subcontractor Manuel Guara have pleaded guilty to one count of conspiracy and one count of mail fraud. Their plea agreements were unsealed Thursday.
Aragon, Parra and the Martinezes conspired to submit and approve false invoices for payment and to make excessive requests for payment, the grand jury alleged. The Martinezes received about $2 million and Aragon $700,000 from the fraud, the indictment said.
Aragon did not immediately return a message seeking comment. Messages also were left for attorneys representing Parra and the Martinezes.
Prosecutors allege Schultz took cash payments from Schiff and passed some of the money to Toby Martinez, who approved inflated invoices. Schultz's attorney, Peter Schoenburg, noted that his client has cooperated with investigators.
'I think he regrets his actions very much,' Schoenburg said.
Messages seeking comment from attorneys representing Schiff and Guara were not immediately returned. Contact information could not immediately be located for the Martinezes and Parra.
Associated Press writers Barry Massey and Susan Montoya Bryan contributed to this report.
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