N.M. Supreme Court will stay out of settlements
Deal would pave way for state to recover $1.3 million.
The New Mexico Supreme Court will not intervene in two settlement agreements that pave the way for the state to recover $1.3 million in connection with politically influenced investment deals dating back to the administration of former Gov. Bill Richardson.
New Mexico State Investment Council spokesman Charles Wollmann said Monday that recent actions by the Supreme Court mark significant progress in the state’s efforts to hold accountable people who profited improperly from state investments.
The court orders represent a setback for former state pension fund officer turned whistleblower Frank Foy in his fight with the State Investment Council over its handling of settlements with investment firms and individuals that paid their way into managing state funds.
The Supreme Court also rejected Friday a request by Foy to disqualify a Connecticutbased law firm that has been helping the State Investment Council reach financial settlements in the wake of the pay-toplay investment scandal.
Foy and attorney Victor Marshall contend they can help New Mexico recover far more money than proposed settlements brokered by the investment council. The New Mexico Attorney General’s Office says the state is in a better position than Foy to recover funds, limit legal fees and avoid costly delays.
The Supreme Court declined Foy’s request to disqualify the Day Pitney law firm on allegations it failed to disclose Wall Street clients that created a conflict of interest as the law firm negotiated settlements on behalf of the state of New Mexico.
Marshall said that Supreme Court action did not address underlying merits and that the matter is still pending in state district court.
The 11-member State Investment Council oversees about $20 billion in state investments. At least two council members have concerns about the state’s legal strategy, citing testimony from state Treasurer Tim Eichenberg and former state Sen. Tim Jennings, Marshall said.