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WASHINGTON — Harry Teague, a leading Democratic contender for the U.S. House seat representing southern New Mexico, has been accused in a federal civil rights lawsuit of ignoring a sexual harassment complaint leveled against a top manager in one of Teague's companies in Hobbs.

Carolina Cueto, a former secretary for ABC Rental Co., charges in the lawsuit that she was harassed at work by James Chenault, operations manager for ABC Rental and Teaco Energy Services, both owned by Teague.

Chenault is one of 11 Teaco or ABC Rental employees who have contributed the maximum $2,300 to Teague's congressional campaign, according to federal campaign finance records.

Teague is running to become the Democratic nominee for Congressional District 2, currently held by Rep. Steve Pearce, a Hobbs Republican. Teague faces Doña Ana County Commissioner Bill McCamley and Al Kissling, Pearce's opponent in 2006.

Teague had raised more money by year's end — $408,610 — than his two opponents combined, with a majority of his contributions coming from Hobbs residents.

Asked to respond to the lawsuit, Teague's campaign sent The Tribune this statement:

"Please know first that Harry takes the issue of sexual harassment very seriously and will not tolerate such behavior in his companies. Secondly, neither Harry nor any of the other defendants have been served with the suit, and for that reason, specific comment is premature at this time.

"That said, we are highly confident that Harry Teague will not be involved in this suit for long and was named only because he owns the businesses named in the suit. Harry had absolutely nothing to do with the alleged events described in the suit and we are confident the legal process will reach the same conclusion."

But attorney Joseph Zebas said Cueto sent e-mails to Teague complaining about Chenault and that Teague never responded. Zebas said Cueto also complained to Troy Teague, the candidate's son and ABC Rental president.

According to the lawsuit, Cueto began working in the ABC Rental office in Eunice, seven miles south of Hobbs, in December of 2005.

She said that in an effort to date her, Chenault "showered" her with gifts, use of a car, pay increases and job promotions. On multiple occasions, she said, Chenault invited her to his house for weekend dinner and that when she refused, Chenault wouldn't talk to her at work.

As a single mother with two children, Cueto said, she felt compelled eventually to attend the dinners.

Zebas said Chenault also bought a puppy for Cueto's children but told them they could only see the dog at his house.

Chenault did not return a phone call from The Tribune.

At the work place, Cueto contends she was subjected to sexual gestures, sexually oriented physical contact and sexually oriented jokes by Chenault and male co-workers.

According to Cueto's attorneys, she was promoted to office manager but demoted in March 2007. She left her job a month later, they said.

Her lawsuit, which also names Chenault and Teaco Energy Services as defendants, was filed in U.S. District Court in New Mexico in December. Cueto is seeking back wages and punitive damages.