E-mail Story
Print Friendly
Wednesday, November 18, 2009
Feds Sought Bland's E-Mails
By Mike Gallagher / Journal Investigative Reporter
Federal investigators have subpoenaed communications between former State Investment Officer Gary Bland and two close associates of Gov. Bill Richardson — Anthony and Marc Correra.
The State Investment Council on Tuesday released four subpoenas — two from a federal grand jury in New Mexico and two from the Securities and Exchange Commission — after denying earlier requests to release the documents.
The subpoenas show the investigation has focused on the state's relationship with a Dallas advisory firm and so-called third-party placement agents such as Marc Correra, who shared in up to $22 million in fees paid by private equity companies that were given state investment dollars.
The advisory firm, now-defunct Aldus Equity of Dallas, was paid $1.7 million a year to evaluate private equity deals and make recommendations to the State Investment Council and Educational Retirement Board.
An Aldus partner has already pleaded guilty to investment-related charges in New York and admitted in his plea deal that he directed New Mexico investments to the benefit of "politically connected individuals" without regard to whether they were good for the state.
The Aldus partner also agreed to cooperate with authorities in the investment investigation here.
As state investment officer, Bland had a major role in hiring Aldus and in directing state investment dollars at both the Investment Council and the ERB.
Anthony Correra, a close friend and supporter of Richardson's, helped choose Bland for the state investment officer job as a member of Richardson's transition team and Bland has said they talked almost daily about the markets.
Richardson has said through a spokesman that he was unaware any placement fees were paid in connection with state business, but Bland has acknowledged he knew Marc Correra was working in that capacity. He has denied any wrongdoing.
The federal grand jury subpoenas ask for all state records involving Aldus Equity, how the company was hired and what funds it recommended. Federal investigators wanted all communications between the state and the advisory firm.
As late as last month, the State Investment Council refused to release the subpoenas in a request from the New Mexico Foundation for Open Government.
Charles Wollmann, the SIC's spokesman, denied the request then on the basis that the agency didn't want to interfere with an ongoing federal investigation.
Wollman said Tuesday that, "The landscape has changed. The situation has changed."
One major change is that Bland is no longer in charge at the SIC.
One federal grand jury subpoena asked specifically for all of his e-mails dating back to his appointment in 2003. The Securities and Exchange Commission subpoena required Bland to testify in Denver in early September.
Federal securities regulators also wanted all communications Bland had with Marc Correra, including companies Correra was affiliated with, and subpoenaed communications between Bland and Anthony Correra.
Bland resigned October 21, two weeks after Aldus Equity founding partner, Saul Meyer, pleaded guilty in New York .
Meyer admitted to participating in a pay-to-play scheme to obtain investments from the New York State Pension Fund.
Two other men involved with New Mexico state investments, Julio Ramirez, of California, and Barrett Wissman, of Texas, also have pleaded guilty in New York to participation in the scheme there.
Like Meyer, they also are cooperating with authorities.
The final straw for Bland came a week before his resignation after three members of the State Investment Council appointed by Gov. Bill Richardson joined fellow member Pat Lyons, the state land commissioner, in a move to restrict Bland's control over state investments.
Lyons said a private attorney hired by the SIC to help the agency respond to the subpoenas found that Bland had directed funds seeking investments to specific third-party placement agents.
Bland disputes that. He has denied any wrongdoing and denied directing anyone to a specific placement agent.
Bland was replaced by an interim state investment officer, Bob Jacksha, who was in charge of investments at the Educational Retirement Board. In June, the retirement board released federal grand jury subpoenas it had received earlier.
You also can send comments via our comment form
|
|
