SANTA FE (AP) — The head of the New Mexico Taxation and Revenue Department resigned Thursday after prosecutors raided her agency's offices and seized her personal tax filings amid allegations she gave preferential treatment to a former business client.
Gov. Susana Martinez accepted the resignation of Secretary Demesia Padilla and ordered the department to cooperate with an investigation by the attorney general.
The attorney general served a search warrant Wednesday at state offices to seize personal and business income tax records for Padilla and her husband, Jessie Medina.
In a search warrant affidavit, an investigator described interviews with several department employees that suggested Padilla may have tried to circumvent an agency audit of a former business client, identified as Harold's Grading and Trucking of Bernalillo.
Investigators also were examining whether Padilla failed to report income from the company on financial disclosure forms filed with the state in her role as taxation secretary.
Padilla's attorney, Paul Kennedy, could not immediately be reached for comment. Padilla took office as the state's top taxation official in January 2011 at the outset of Martinez's first term as governor.