The FBI raided the New Mexico State Treasurer's Office as part of a two-year investigation into corruption. They indicted the State Treasurer and former State Treasurer on racketeering and conspiracy charges. This caused a media frenzy and pressure increased for the Treasurer to resign. The governor ordered the Treasurer to step down and a new Treasurer was appointed to restore public trust and reform the office through transparency and audits.

1. Crisis Communications
State Treasurer's Office Scandal
Jodi McGinnis Porter

2. September 16, 2005, Scenario
 Six weeks on the job as new public relations
specialist
 40 FBI agents raid the office and shuffle staff
into a conference room
 FBI takes over office, seizes all computers
and begins interrogating staff individually
 No one knows what’s happening
 Press surrounds the building outside

3. Midas Touch
 Code word the FBI used for the 2-year
undercover investigation
 New Mexico Federal Grand Jury hands down
indictments of current State Treasurer Robert
Vigil and former State Treasurer Michael
Montoya
 Indictments are for: Racketeering,
Interference with Commerce by threats of
violence and conspiracy

4. Strategies
 Identify yourself and cooperate with the
investigation
 Request meeting with FBI Media
Representative
 Damage control

5. Press and staff
 FBI staff interviews conclude
 Staff dismissed for the day
 Prepare staff for media frenzy outside before
they exit building

6. Challenges
 Not allowed access to computers, printer or
phone
 Negotiate with FBI to issue a statement of
cooperation
 On borrowed FBI laptop, allowed to prepare
statement and fax to media
 Prepare statement for Deputy Treasurer that
staff is cooperating with the investigation

7. John Trever, political cartoonist for the Albuquerque Journal,
published days after the raid

8. Governor Issues Statement
 Sunday, September 18, 2005
 Governor Bill Richardson issues statement
urging State Treasurer to step aside

9. Business Day Two
 Biggest media story in the state
 All stories in the press are: Governor calling
for State Treasurer’s resignation
 Issue statement that investments are secure,
office returning to normal
 Deputy Treasurer running the office
 Establish separation between office and the
investigation

11. Increased Pressure
 Security cameras monitoring staff
movements by appointed employee
 Staff claims of intimidation for cooperating
with FBI
 Nepotism issues and documents leaked to
press
 Governor orders security for staff protection

13. State Prepares to Impeach
 Treasurer resigns
 Deputy Treasurer runs office
 Staff morale at all time low
 Simultaneously the highest and lowest
moment in the scandal

14. A New Day
 Governor appoints new Treasurer
 New Treasurer not political or allowed to run
for office
 A sign of hope

16. Goal: Restore Public Trust
 CLEAN HOUSE
 SET THE ETHICS BAR HIGH
 FIND THE BOTTOM
 PREACH PATIENCE
 COMMUNICATE

17. Actions/House-cleaning
 Six employees terminated
 Three resigned
 Three placed on paid administrative leave
 Employee Assistance Counselor provided

18. Actions/Setting the Ethics Bar
 Review of personnel policies and procedures
 Establishment of anonymous whistleblower
hotline
 Employees assured all reported complaints
would be investigated

19. Actions/Find the Bottom
 Independent fiduciary audit of the office
 Independent law firm conducts top-to-bottom
legal performance review
 Audits published and available to the public

20. Actions/Preach Patience
 Remind staff of long-term strategy
 Conduct regular staff meetings
 Encourage cooperation with auditors

21. Actions/Communications
 Regular staff meetings conducted
 Complete transparency
 All requests for information granted to press
 Press allowed to tour the office

22. Lessons Learned
 Trust your instincts
 Remember that today’s news is tomorrow’s
trash
 Don’t take anything personally
 Build relationships with the media and
establish your credibility as a reliable source
 Report the facts
 You must be truthful, but you are not a
reporter

23. Where They Are Now:
 Former State Treasurer Robert Vigil
 Convicted in the second trial on one count of
attempted extortion
 Serving a 37-month prison sentence and fined
approximately $100,000.
 Former State Treasurer Michael Montoya
 Pled guilty to a federal racketeering charge
 Sentenced to 40 months in prison and fined
$25,000 for his role in a kickback scheme

24. Food for thought…
 This scandal broke, because a former employee at
the State Treasurer’s Office was arrested on a
counterfeiting charge
 He printed counterfeit money using state equipment
 Treasure Vigil fired from his job
 He was the bagman for both Treasurers
 He turned FBI informant and was granted immunity
from federal prosecution
 He’s currently serving time on state charges