N.M. Tax and Revenue secretary resigns amid allegations of wrongdoing
State Taxation and Revenue Secretary Demesia Padilla has resigned in the wake of allegations of wrongdoing.
State investigators served a search warrant Wednesday at tax department offices for personal and business income-tax records for Padilla and her husband.
The search warrants shows Padilla is under investigation by the Office of Attorney General for potentially interfering with a tax department audit of a former client. Padilla worked as a certified public accountant before becoming Tax and Revenue secretary in 2011.
According to the search warrant, Padilla and her husband also may have received thousands of dollars in unauthorized payments from the client.
In addition, the search warrant says Padilla may have failed to report on her government financial disclosure form tens of thousands of dollars received from a payday loan company.
An attorney for Padilla and her husband couldn’t be reached immediately for comment.
Gov. Susana Martinez said she accepted the immediate resignation of Padilla.
Martinez said in a written statement:
“As a former prosecutor, I take any allegations of misconduct seriously and don’t believe anyone is above the law — that is why I ordered the tax department to fully cooperate with the Attorney General’s Office during the course of their investigation. New Mexico faces pressing issues — particularly with our budget — and that must continue to be our focus as we move forward, which is why I accepted her resignation and will quickly appoint a new secretary.”
Last year, the state Auditor’s Office released a letter from Padilla in which she told auditors at the department that a former client of hers shouldn’t have to pay a penalty.
The Auditor’s Office also accused employees at Tax and Revenue of obstructing an investigation into whether Padilla improperly intervened in an audit of the former client.
Padilla had denied any wrongdoing.
Martinez had accused Auditor Tim Keller of partisanship for making the allegations against the secretary.
The Santa Fe New Mexican is a sister-paper of The Taos News.
