Ethics complaint alleges group failed to disclose donors, and suggests connection to prominent lobbyist

Over the course of May and early June this year, a new group called the “Council for a Competitive New Mexico” (CCNM) spent over $130,000 on a media campaign supporting a group of incumbent state senators, most of whom would go on to lose as part of a progressive wave in June’s Democratic primary. The media campaign included several negative mailers and automated phone-calls against candidates opposing the incumbents while the public was left in the dark about who organized the group and who funded the media campaign. 

Now, an ethics complaint filed this week with the Secretary of State’s office alleges that CCNM broke New Mexico’s election code by not disclosing its donors. 

Neri Holguin, campaign manager for two of the candidates who won during the June primary, Siah Correa Hemphill and Pam Cordova, writes that the group may have violated the New Mexico Elections Code by not reporting who paid for the negative advertising and phone calls against those candidates as well as others. 

“It was a deliberate attempt to make it as difficult as possible for voters to know who’s behind these hits on our candidates,” said Holguin in an interview. “They knew the rules enough to file as an independent expenditure (IE) and to list their expenditures, and so why not list contributors?”

“Voters need to know that, and we have no way of knowing that right now,” said Holguin. At the core of Holquin’s complaint is a new state law that triggers certain groups to disclose publicly and quickly who the donors are that paid for their electioneering activities if the costs are larger than a state-prescribed threshold. 

Holguin said she believes CCNM was created by a group of people, including prominent New Mexico lobbyist Vanessa Alarid–whom she mentioned by name in the complaint–that have used similar tactics in recent years to influence elections at the local and state level without disclosing publicly who is funding the activities in a timely fashion.Chevonne Alarid, the president of the nonprofit group, however, said disclosure isn’t necessary  until it files its annual report to the Internal Revenue Service. In addition, she and Vanessa Alarid both denied Vanessa’s involvement.

Despite no corporate money pledges, Democratic federal candidates keep taking it

While every Democrat running for federal office in New Mexico this year pledged to not accept money from corporate political action committees, they still benefit from corporate giving. 

Funneled to their campaigns from intermediary PACs that gather corporate money and then redirect it to candidates for office, the donations shine a light on the complications Democrats face when attempting to distance themselves from corporate special interests while still raising enough money to run winning campaigns. Since the landmark Citizens United vs. FEC Supreme Court ruling in 2010– which opened political campaigns to unrestricted outside spending in elections by corporations, nonprofits, unions, and other organizations—a movement to enact reforms that would limit corporate influence in elections has grown, and found a home within the Democratic Party. One group, called End Citizens United, encourages candidates to pledge not to accept donations from corporate PACs. Federal rules already prohibit candidates from taking donations from corporations directly.

Spending in New Mexico primary highlights dark money at work

As the Democratic primary in New Mexico’s third congressional district heated up in May, two mysterious groups– Avacy Initiatives and Perise Practical– began spending a combined $300,000 to support Teresa Leger Fernandez, now the Democratic nominee. The groups ran positive, even glowing advertisements about Leger Fernandez, but didn’t disclose who paid for the ads. Few details could be found about them online. This “dark money” spending drew significant criticism from other candidates, who condemned Leger Fernandez for not calling for removal of the ads. 

But a review by New Mexico In Depth of Federal Election Commission filings suggests the real goal was to deny another candidate in the race—Valerie Plame— the win by boosting the prospects of the Leger Fernandez campaign. 

It’s not uncommon for groups to spend money to support one candidate in order to prevent another candidate from winning. But when groups don’t disclose their donors, voters are left in the dark about the motives behind such efforts. 

“Our voting public is incredibly busy, and doesn’t have time to do research on every single one of the candidates,” said Heather Ferguson, executive director of Common Cause New Mexico.