More than two months after State Auditor Hector Balderas released a searing report accusing former Jemez Mountain School District business manager Kathy Borrego of embezzling more that $3.3 million of public funds, Borrego has still not been charged with a crime.
Balderas said he understands District Attorney Spence Pacheco wants to establish as much evidence as possible but also questioned her approach to prosecuting the case.
“I understand the delay, but you know (Second District Attorney) Kari Brandenburg (in Albuquerque), (Eighth District Attorney) Donald Gallegos in Taos, their styles on a huge case like this would have been to commit to a time frame and try to stick to it,” Balderas said.
Assistant District Attorney JoHanna Cox said Balderas’ report was a “starting point” and defended her office’s timeframe, citing ongoing investigations by the state Taxation and Revenue Department and the FBI.
“They need to complete their investigations thoroughly and completely,” Cox said. “We can’t force them on a timeline faster than they are able to do.”
Cox would not say how long she expected those investigations to take.
Balderas said his office sent out warning in June about Borrego’s suspected embezzlement, accusing Borrego of stealing $292,000 from the District, “as a courtesy, so (agencies) could start getting investigators out in the field.”
Since then, even with Balderas’ Aug. 13 report accusing Borrego of stealing $3.3 million, Pacheco has yet to file charges against Borrego. Days after Balderas released the Aug. 13 report, Pacheco said her office was waiting for the Rio Arriba County Sheriff’s Department and the state of Taxation and Revenue Department to complete their investigations before seeking an indictment against Borrego.
But Sheriff’s Det. Adam Archuleta said he turned in a supplemental report to Pacheco’s office more than five weeks ago and has been expecting an indictment any day. A public records request to inspect the report has been denied by the District Attorney’s office.
“We’re just waiting for the (District Attorney),” Archuleta said. “Actually it should be going to grand jury here pretty soon, I think the next grand jury (that is called). I think so anyway.”
S.U. Mahesh, spokesman for the state Taxation and Revenue Department refused to comment on the case, referring all questions to Pacheco, and Alvin Romero, director of the Department Tax Fraud Investigations Division did not return calls seeking comment.
So the question remains: why the delay?
“I definitely would think, professionally, you have to verify our work to a degree,” Balderas said. “But I do know our report was completed by a certified public accountant with over 35 years of government auditing experience. (And) the totals (in my report) are hard. It isn’t an estimated number.”
Balderas said his office has had “some contact with agencies at the federal level,” including the FBI, on the Borrego case but would not go into detail. Balderas forwarded his report to the FBI and three other federal agencies: the United States District Attorney, the federal Education Department’s Inspector General and the Internal Revenue Service.
Balderas also said he is about to notify all of the investigating agencies that his office is at their disposal to help speed things along. In a case like this, time is of the essence, he said.
“It’s important for agencies to work together to hold individuals accountable who abuse the public trust,” he said. “And it’s important when you have an egregious situation like this that there be a swift response.”
Borrego did not return calls seeking comment.