Judge: Official tied to Richardson violated duties in pay-to-play scandal

A judge has ruled New Mexico’s former investment officer, who was responsible for multibillion dollar endowments, violated his duties in a pay-to-play scandal that is still unraveling nearly a decade after rattling state politics.

The decision by state District Judge Sarah Singleton last week is just the latest turn in an ongoing lawsuit filed during 2011 and could open the way for the State Investment Council to hold Gary Bland liable for some of the more than $100 million it claims to have lost through the ordeal.

The decision hinges on allegations that Bland failed to disclose connections to Anthony Correra, a close friend, adviser and patron of former Gov. Bill Richardson, and his son, Marc Correra.

The council charges Bland steered investments offered by Marc Correra without consulting the council or disclosing anything about the deals. Bland has denied any wrongdoing. Singleton noted the law requires trustees of the state’s permanent funds to act “solely in the interest of the beneficiaries,” such as the public education system, which receive money from the investments.

“[The State Investment Council] has presented evidence that Bland directed business to Marc Correra which was in Correra’s interest without disclosing this to his cotrustees,” Singleton wrote. “Bland does not present any evidence that refutes this … ”

The lawsuit will continue and names a variety of co-defendants, including the Correras.