ALBUQUERQUE, N.M. (AP) - The Latest on New Mexico’s settlement offer in a pay-to-play scandal under former Gov. Bill Richardson (all times local):
6:00 p.m.
A New Mexico district court is extending deliberations on whether to dismiss whistleblower claims in a pay-to-play scandal involving state investments.
District Judge Louis McDonald on Monday adjourned the first day of hearings on a proposed settlement to recover $24 million from Chicago-based Vanderbilt Capital Investors.
Former teacher pension fund officer Frank Foy and attorney Victor Marshall say they can do a better job of pursuing claims against Vanderbilt than the New Mexico attorney general’s office.
Foy is testifying that Vanderbilt and allies of former Gov. Bill Richardson pressured the Educational Retirement Board to invest $90 million of pension funds in risky financial instruments that became worthless after the financial crisis struck in 2007.
___
1:20 p.m.
An attorney says whistleblowers would deserve up to 30 percent of a proposed settlement between New Mexico authorities and a Chicago-based investment firm.
Albuquerque-based attorney Victor Marshall said Monday that his client deserves between 25 percent and 30 percent of any funds recovered by the state in a scandal that put state investments in the hands of money managers in return for payments or political favors under former New Mexico Gov. Bill Richardson.
Marshall represents former state pension fund officer Frank Foy in independent whistleblower lawsuits aimed at recovering kickbacks and wasted investments on behalf of New Mexico taxpayers and teachers.
The New Mexico attorney general’s office is seeking to dismiss Foy’s competing lawsuit against Vanderbilt Capital Investors so that a $24 million settlement can go forward.
___
4:00 a.m.
A New Mexico district court is considering whether to accept a $24 million settlement from an investment firm in a pay-to-play scandal that took place during administration of former Gov. Bill Richardson.
Judge Louis McDonald has scheduled three days of hearing beginning Monday on the settlement offer with Chicago-based Vanderbilt Capital Investors.
It would be the largest payment to date in a scandal that put state investments in the hands of money managers in return for payments or political favors.
The judge must first consider whether to dismiss competing claims to recover state funds filed by whistleblowers.
Retired state pension fund officer Frank Foy says taxpayers are due far more money than the settlement offers. New Mexico Attorney General Hector Balderas disagrees and considers the settlement reasonable.
Please read our comment policy before commenting.