The highest-ranking official at the state Taxation and Revenue Department became somewhat reflective Tuesday over last week’s sudden resignation of his former boss, Demesia Padilla. At an annual state legislative conference hosted by the New Mexico Tax Research Institute, the department’s Deputy Secretary John Monforte said he’s known Padilla for 10 years and came to the department when she was appointed by Gov. Susana Martinez. Padilla resigned as secretary last week after an agent for Attorney General Hector Balderas filed a search warrant affidavit on her home. Monforte is now heading the department. The affidavit described an ongoing investigation that points to possible tax evasion and alleged embezzlement of money from a business she once did accounting work for, including while she was TRD secretary.
A leaked email from the state Taxation and Revenue Department last week was perhaps more transparent than the department intended. Update: The Taxation and Revenue Department responded. Here is the response. This story continues as originally written below. State Taxation and Revenue Secretary Demesia Padilla is currently under investigation by the state Attorney General’s Office for allegedly providing or attempting special tax treatment to a former client for whom she served as a certified public accountant.
A state department attempted to thwart an outside investigation into its cabinet secretary’s alleged wrongdoings, State Auditor Tim Keller said in a press conference Wednesday morning. Keller released four documents related to his office’s preliminary investigation into whether Taxation and Revenue Department Secretary Demesia Padilla illegally intervened to give preferential treatment to her former client and retaliated against employees who brought concerns. The Taxation Department collects and distributes tax funds in New Mexico. Among the newly released documents are letters showing how the department attempted to prevent two of its employees from being interviewed by an outside firm hired by the state auditor to look into the matter. “They basically were trying to obstruct our investigation,” Keller said.
An investigation into the state Taxation and Revenue Department is implicating cabinet Secretary Demesia Padilla for alleged illegal behavior. State Auditor Tim Keller recently revealed that his office received a complaint in February that senior TRD officials gave a certain politically connected taxpayer preferential treatment. Part of the reason for the alleged preferential treatment centered around how a cabinet level TRD official previously worked for this taxpayer. A letter sent yesterday from State Auditor Tim Keller to Gov. Susana Martinez says that the allegations surround Padilla, the highest-level employee in the department. According to the letter, Padilla allegedly “improperly influenced, or attempted to influence, the TRD tax audit of a former client.”