Report: New Mexico Loses $1.6 Million Due To Fake Audit

Apr 26, 2013

A state agency that provides low-cost financing for local governments estimates it has spent about $1.6 million on expenses stemming from a fraudulent audit of its books.

According to the Albuquerque Journal, the New Mexico Finance Authority's estimated costs largely stem from outside investigations and reviews of the fraudulent audit.

The costs include a special audit conducted by State Auditor Hector Balderas along with legal and consulting fees and renting office space for investigators.

Interim Chief Executive John Gasparich says the authority has tightened its belt and used its reserves to pay for the costs.

The authority's former controller pleaded guilty last year to forgery and securities fraud for faking the audit.

Two credit rating agencies recently affirmed the Finance Authority's top bond rating.

Copyright 2013 The Associated Press.