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Thu March 11, 2010
Update: NM Investment Losses
By KRWG News
New Mexico – A former state pension investment officer, who is suing several national financial firms over failed New Mexico investments, says the state now has lost $228 million, up from $90 million claimed in the initial filing.
Frank Foy filed a lawsuit in 2008 under the Fraud Against Taxpayers Act. Plaintiff's attorney Victor Marshall says an amended complaint this week reflects new totals that include dividends and interest the state was told it would receive when the investments were made.
The main defendant, Vanderbilt Financial, specialized in collateralized debt obligations. It received almost $244 million of state investments from the State Investment Council and the Educational Retirement Board from 2004 to 2006.
Vanderbilt officials have denied wrongdoing.
Copyright 2010 The Associated Press.