I am writing today to announce the closure of the New Mexico Independent. After three and a half years of operation in New Mexico, the board of the American Independent News Network, has decided to shift publication of its news…
While environmental activists played their part yesterday during demonstrations at the capitol building, going so far as to dress up as solar panels and to sing the tune of “You Are My Sunshine,” their counterparts, the anti-cap-and-trade contingency who has…
Roughly one quarter of University of New Mexico students are unimpressed with the state’s flagship public school, according to a survey that questioned college students about their higher education experiences.
A lawsuit filed by a former state investment officer has been moved to federal court. And already there are fireworks.
Frank Foy, a former chief investment officer at the state Education Retirement Board, has alleged in a 26-page complaint filed in state court last year that pressure was exerted on officers at his former agency and at the State Investment Council to make investments that ultimately lost the state nearly $90 million.
Several defendants filed notice to remove Foy’s case from state court to federal court on Friday, which is a right defendants generally have under U.S. law.
Foy’s attorney, Victor Marshall, meanwhile, already has filed a motion in federal court to expedite a deposition of a witness he feels is key to his client’s case — Pauline Turner, a former trustee at the Education Retirement Board.
Turner served as an ERB trustee for 14 years. Turner, a former family studies professor at University of New Mexico, said in an affidavit filed with the court documents that she quit ERB because of health, but also because of concerns about the investment strategies of the board.
The affidavit reads:
“I stepped down because of poor health, advancing age, and frustration in the direction that the Board was moving, particularly as it related to investment philosophy and the actions and characteristics of the Board Chair.”
ERB Chairman Bruce Malott has denied Foy’s allegations.
According to a filing by Marshall, Turner “has firsthand personal knowledge concerning many of the disputed issues in this case. … Professor Turner was one of the ERB Trustees who voted against the investment in Vanderbilt, which caused the State of New Mexico to lose $40 million.”
The investments that went sour were touted by Vanderbilt Capital LLC. The State Investment Council lost $50 million as a result of the investment.
Marshall insists that he must depose Turner March 23 because of her failing health.
According to Marshall’s motion, “there is a significant possibility that she might die (or become incapacitated) before she can be deposed under the usual waiting period imposed by Rule 26. This is why the rules provide authority to expedite discovery when appropriate.”
Marshall continued in his motion, “This case has been removed to federal court by a few defendants, purportedly under the authority of 12 U.S.C. § 632. Whether this case has been properly removed is a question that will take some time to resolve, but in the meantime Professor Turner’s testimony should not be lost.”
According to Marshall, some defendants, including Vanderbilt, have opposed the motion for the expedited deposition on March 23.
Federal court records show that Foy’s lawsuit was assigned to District Judge William P. Johnson in Albuquerque. It was subsequently referred to Magistrate Judge Richard L. Puglisi, who also works in Albuquerque.
The Education Retirement Board is responsible for pensions for public educational employees while the State Investment Council makes investments with state money.
