Democrat culture of corruption- Richardson chapter

Ex-investment officer says N.M. lost $90 millionby
Tim KorteAssociated Press Writer

A former investment officer for the state's educational pension program claims New Mexico taxpayers lost more than $90 million in an alleged "pay-to-play" scheme in which political contributions to Gov. Bill Richardson influenced the awarding of investment business.
Frank Foy says in a civil lawsuit the Educational Retirement Board invested $40 million in collateralized debt obligations offered by Chicago-based Vanderbilt Capital Advisors and Vanderbilt Financial because of pressure from a Richardson appointee who served as chairman of the pension system's governing board.
The lawsuit, filed on behalf of the state under a 2007 law, seeks damages that plaintiff's attorney Victor Marshall, a former Republican state senator, said could total more than $300 million.
Political considerations also influenced the state Investment Council to invest $50 million in worthless CDOs through Vanderbilt, according to the whistleblower lawsuit, which was filed in state district court in Santa Fe last July but was unsealed this week. It was made public at a news conference Wednesday.
Gilbert Gallegos, a spokesman for Richardson, said the Democratic governor "is confident that the state agencies named in this lawsuit acted properly and in the best interest of New Mexicans.
"This lawsuit, filed by a disgruntled former employee who was accused of serious misconduct during his time as a state employee, makes absurd claims against state agencies," Gallegos said. "The state will vigorously defend those agencies."
Foy, chief investment officer at the Educational Retirement Board from 1996-2006, claims Vanderbilt executives later contributed at least $15,100 to Gov. Bill Richardson's failed presidential campaign.
The $90 million investment was wired to Vanderbilt in August 2006, but was worthless when the funds collapsed four months later, Foy said. Contributions to Richardson's campaign were made by several Vanderbilt employees in February, June and December 2007.
A spokesman for Pioneer Investments, Vanderbilt's parent company, didn't return messages seeking comment.
Foy contends he was forced to retire from state government last year.
"The reason I came forward was not to inflict harm on the state of New Mexico," Foy said. "My hope is to help the state recover more than $300 million that is owed to taxpayers and teachers."