In late 2011, Smith announced his intention to represent the 1st Congressional District of New Mexico in the 2012 elections. To do so, he would have needed to oust incumbent Arnold-Jones in winning the Republican ticket, then win the popular vote after gaining the GOP nomination. His campaign was managed by Rhead Story, another local Republican politician. In Smith's announcement he stated "The people of New Mexico are hurting... New Mexicans need a congressman who will be honest and straightforward with them and who will be focused on creating solutions to the problems facing our nation and our great state." At the Republican pre-primary convention on March 17, 2012, incumbent Arnold-Jones was challenged by then AlbuquerqueCity CouncilmanDan Lewis and Smith. Arnold-Jones took 62% of the vote, with Lewis following at 33% and Smith garnering 4%. The Washington Post stated Smith "wasn't even close to defeating" Arnold-Jones. A complaint was raised by Arnold-Jones that stated some of Smith's nomination petition signatures were invalid. Smith would have had to have gathered 1,579 signatures to qualify for the Republican nomination ballot. Responding to the complaint, Judge C. Shannon Bacon ruled that some of the signatures were indeed invalid, thus disqualifying Smith from the race. Of the 1,823 Smith gathered, 492 were deemed invalid, meaning he needed 248 more signatures. Signatures can be considered invalid if "signers either were duplicates from other petitions, registered in another district or not registered as Republicans." With Lewis withdrawing from the race and Smith being disqualified, Arnold-Jones was granted the GOP ticket by default. Eventually, Arnold-Jones lost the seat to DemocratMichelle Lujan Grisham in the popular election. Arnold-Jones was defeated ~59% to ~41%. In total, Smith spent nearly $300,000.00USD on his congressional campaign, with most of that amount being his personal funds. The exact amount came to $296,951. Following the election, Smith was arrested for stalking of Arnold-Jones after being caught on surveillance video slashing tires at the candidate's residence. Smith was convicted of aggravated stalking and misdemeanor stalking in 2014 and sentenced to 30 months in prison with 17 months credit for time served.
