The most amusing thing about Democratic Corruption is the fact that you scratch the surface and it just gets better.
A new pay for play allegation has surfaced, compounding Big Bill’s problems to the point where this may be the straw that makes Diane Denish’s wildest dreams come true. The new information is so juicy I have a feeling our previously upset Lt. Governor is remeasuring the drapes.
This time a former state official is alleging that there is a link between campaign contributions made to Bill Richardson and an investment that cost the state $90 Million.
“…In a lawsuit filed on behalf of state taxpayers and unsealed Wednesday, Frank Foy claims he was pressured into investing in now-worthless subprime mortgages with Vanderbilt Financial in 2006. At the time Foy was the chief investment officer for the Educational Retirement Board which controls billions of dollars in teacher retirement funds…”
“…The lawsuit was filed in July and unsealed today by Frank Foy, the former chief investment officer for the New Mexico Educational Retirement Board. The educational board invested $40 million and the State Investment Council invested $50 million with Vanderbilt Financial and affiliated companies. Foy alleges that the investments were directly tied to more than $15,000 that Vanderbilt employees and family members gave to the governor’s campaign.
You can view a list of the contributions provided by Foy’s attorney by clicking here.
“It was my job at the Educational Retirement Board to act as a prudent fiduciary to protect schoolteachers’ retirement money,” Foy said today in a news release announcing the lawsuit. “But teachers and taxpayers have lost millions due to pay-to-play practices that benefited Gov. Richardson and his campaigns.”
The governor’s office did not immediately respond to a request for comment. It’s not clear whether Richardson is named in the lawsuit, because dozens of defendants’ names were not unsealed with the rest of the lawsuit today. At this time, the governor has not been publicly named as a defendant….Update, 4:15 p.m.
Richardson spokesman Gilbert Gallegos released this statement:
“The governor is confident that the state agencies named in this lawsuit acted properly and in the best interest of New Mexicans,” he said. “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. The state will vigorously defend those agencies.”
Meanwhile, I’ve been unable to reach Bland’s spokesman, Charles Wollmann, for comment, but Wollmann told The New Mexican that Bland has done nothing wrong.
“The state investment officer has not participated in any wrongdoing and will vigorously fight the reckless allegations made today,” he was quoted as saying.
The New Mexican could not immediately reach Malott for comment.
Update, 4:50 p.m.
Wollmann just provided me with his full statement:
“Mr. Foy’s assertions are without merit and his motivations are questionable at best. The state investment officer has not participated in any wrongdoing and he will vigorously fight the reckless allegations made today,” Wollmann said.”…”