Bloomberg - Martin Z. Braun -
By Martin Z. Braun
June 26 (Bloomberg) -- Federal prosecutors subpoenaed New Mexico’s $6.3 billion teachers pension fund for records related to Aldus Equity Partners, a consultant that advised it on private equity investments.
New Mexico’s Educational Retirement Board released the subpoena and another requesting communications between the fund’s chairman Bruce Malott, Governor Bill Richardson’s former campaign treasurer, reversing an earlier decision to withhold the document.
The Justice Department asked the pension fund to produce all correspondence, contracts and e-mails with Dallas-based Aldus. Prosecutors also demanded a list of companies that Aldus recommended that the fund invest in, minutes of meetings Aldus attended, and a record of payments to the firm. New Mexico’s State Investment Council, which manages $11.8 billion of endowment funds, has acknowledged receiving a federal subpoena without releasing the document.
The Justice Department’s probe is the second federal investigation of how New Mexico awarded contracts to manage its finances.
Federal prosecutors have investigated whether a California financial adviser was awarded $1.5 million in bond and interest- rate swap work in the state in 2004 in exchange for $100,000 in donations to Richardson’s political committees.
Richardson, who has denied wrongdoing, withdrew from consideration as U.S. commerce secretary following disclosure of the probe.
New Mexico’s teachers pension fund and the state investment council fired Aldus within the past two months after a managing partner of the Dallas-based firm was accused of paying kickbacks in New York state.
New York Attorney General Andrew Cuomo charged Aldus money manager Saul Meyer with paying $320,000 to a shell company owned by a political adviser to former New York State Comptroller Alan Hevesi. Meyer has denied wrongdoing; Hevesi faces no charges.
Cuomo and the U.S. Securities and Exchange Commission are investigating money managers and their placement agents who used ties to public officials and kickbacks to buy and sell access to the $2 trillion in U.S. public pension systems.
The Justice Department’s subpoena to New Mexico also seeks records related to third-party investment brokers and contracts with firms investing money or advising the fund.
Placement Agent Payments
Placement agents, were paid at least $33 million after securing investments from New Mexico’s teachers pension fund and state investment council, according to records released by the funds.
Marc Correra, the son of a political supporter of Richardson shared in more than $16 million, about half of fees paid to middlemen for New Mexico investments. Correra’s father, Anthony, served on the board of a political action committee Richards set up to register Hispanic and American Indian voters.
The teachers pension fund’s former chief investment officer, Frank Foy, has alleged in a whistleblower suit filed June 9 that the fund hired Aldus over the objections of staff, who said the firm wasn’t qualified.
The suit alleges that Malott “insisted” that Aldus be interviewed by the pension fund even though staff hadn’t rated Aldus among the top five finalists.
The New Mexico Independent - Trip Jennings - Jun 25, 2009
Both lawsuits – one filed by Frank Foy, the other by the National Education Association of New Mexico – seek to recover damages from Texas-based Austin ...
Pensions & Investments - Arleen Jacobius - Jun 24, 2009
... that it is much more focused than another lawsuit unsealed Tuesday by former CIO Frank Foy, said Christopher G Schatzman, the board's general counsel. ...
KOAT.com - Jun 24, 2009
Frank Foy alleges that political considerations in Gov. Bill Richardson's administration improperly influenced investments and decisions on money managers ...
Global Pensions - Raquel Pichardo-Allison - Jun 24, 2009
Frank Foy's allegations are far-reaching, naming some two-dozen financial firms and claiming investments made by the new Mexico Educational Retirement Board ...
FINalternatives - Jun 24, 2009
... class-action suits, and yesterday was added to the list of 75 Madoff-linked defendants being sued by Frank Foy, a former investment officer at the NMERB.
The New Mexico Independent - Trip Jennings - Jun 24, 2009
Frank Foy on Tuesday added a Texas-based firm that caused New Mexico teachers' pension funds to be indirectly invested in ...
Emii.com - Jun 24, 2009
Frank Foy, ex-CIO of the New Mexico Educational Retirement Board has accused several alternative investment firms and placement agents of pay-to-play, ...
KOAT.com - Jun 23, 2009
The lawsuit was brought against the state by Frank Foy. In it, page after page of allegations say Gov. Bill Richardson and people close to him were involved ...
The New Mexico Independent - Trip Jennings - Jun 23, 2009
Frank Foy, a former investment officer at the Educational Retirement Board, filed a complaint last year to recover $90 million that was lost because of a ...
KRQE - Dave Bohman - Jun 23, 2009
Former Education Pension Fund Official Frank Foy has added what he calls a New York connection to his lawsuit. Basically, Foy claims New Mexico money helped ...
Dallas Morning News - Barry Massey - Jun 23, 2009
Frank Foy's lawsuit makes broad allegations that investment decisions by the State Investment Council and Educational Retirement Board were made to reward ...
KDBC - Jun 23, 2009
Frank Foy filed the lawsuit, which was unsealed in state district court this week. Dozens of investment firms and their principals are named as defendants. ...
Pensions & Investments - Arleen Jacobius - Jun 23, 2009
Frank Foy, former CIO of the $6.5 billion New Mexico Educational Retirement Board, Santa Fe, is making pay-to-play allegations against a ...
United Press International - Jun 18, 2009
In court papers, attorneys for Frank Foy said Amanda Cooper should be cited for contempt because she failed to hand over documents on a non-profit ...
HispanicBusiness.com - Jun 18, 2009
Lawyers for "whistle-blower" Frank Foy are asking that former deputy Bill Richardson campaign manager Amanda Cooper be held in contempt of court for not ...
The New Mexico Independent - Trip Jennings - Jun 17, 2009
(File photo) A lawyer for whistleblower Frank Foy has asked a state judge to hold Gov. Bill Richardson's former deputy presidential campaign chair in ...
The New Mexico Independent - Trip Jennings - Jun 16, 2009
The former officer, Frank Foy, has alleged that there was a pay-to-play culture in how the state made investments and cited the Vanderbilt deal in ...
The New Mexico Independent - Trip Jennings - Jun 9, 2009
... executive privilege recently as one of several reasons to deny records requested by a former Educational Retirement Board investment officer Frank Foy. ...
The New Mexico Independent - Heath Haussamen - Jun 8, 2009
Those investments, which the state lost completely, are the subject of the pay-to-play lawsuit brought by Frank Foy on behalf of the state. ...
Chicago Defender - Jun 2, 2009
Frank Foy, a former investment officer for the state Educational Retirement Board, alleges the state lost the money in flawed investments through an alleged ...
The New Mexico Independent - Trip Jennings - Jun 2, 2009
Turner is a witness in a lawsuit filed by former ERB investment officer Frank Foy. Foy, who filed the civil complaint last year, is seeking to recover the ...
The pensiongate scandal keeps on growing and growing and growing, Bigger than Watergate.
BTW: It all started with a phone call to a hotline setup by "honest" Chris Callaghan who was running against Alan Hevesi in 2006.
NO MORE SCHUMER
NO MORE PELOSI
NO MORE RANGEL
NO MORE ENGEL AND HIS MILLION DOLLAR HOME IN MARYLAND