Wednesday, May 26, 2010

NM seeks to recover losses, fees from iffy deals

New Mexico's State Investment Council plans to hire an outside law firm to pursue the possible recovery of losses from failed investments and questionable fees paid to third-party marketing agents. The council oversees the management of New Mexico's endowment funds valued at about $13 billion. A council subcommittee recommended in March that the attorney general consider bringing a lawsuit to recover damages or losses from investments made because of potential play-to-pay influences. Several council members complained that Attorney General Gary King hadn't acted quickly to bring investment lawsuits. Moise said the decision to hire a law firm was made after consulting with King. A pension scandal in New York has raised questions about New Mexico investments made by the council and a state educational pension fund. The co-founder of a firm that advised the council has pleaded guilty in the New York case and acknowledged that some investment deals in New Mexico were done because of pressure from politically connected individuals. The names of those people have not been disclosed. Federal investigators are looking into New Mexico investments and the use of third-party marketers or placement agents that shared in millions of dollars in fees...more

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