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Saturday, June 06, 2009
Gov. Insider Worked in SIC Office
By Thomas J. Cole
Journal Staff Writer
The relationship between Anthony Correra, the Richardson administration insider, and the State Investment Council has been closer than previously disclosed.
The ties are important because Correra's son, Marc, has shared in more than $16 million in fees paid by investment firms for help in getting them business with the State Investment Council and the state Educational Retirement Board.
Here are the new details on Anthony Correra:
• Although not an employee, he was temporarily provided work space at the State Investment Council office after Bill Richardson became governor in January 2003.
• Correra attended meetings between representatives of the office and a Texas company seeking a state investment.
• He was appointed director of a private company to fill a seat allocated to the State Investment Council after it made an investment in the company.
Correra, who has shared a Santa Fe office address with his son, has been a major campaign contributor to Richardson and served on the governor's search committee for a new investment officer.
That search led to Richardson's appointment in January 2003 of State Investment Officer Gary Bland, who was later appointed by the governor to the Educational Retirement Board, the pension fund for teachers and others.
Bland recently said he talks frequently to Anthony Correra, a former securities broker/dealer, about investment market conditions.
He has also said he talks regularly with Marc Correra, who has followed his father into the investment business, but said the son doesn't benefit from any favoritism in his dealings with the State Investment Council.
Richardson chairs and controls the State Investment Council, which directs the work of Bland and his office in investing billions of dollars in government trust funds.
In a settlement with the U.S. Securities and Exchange Commission in 1990, Anthony Correra agreed to pay nearly $500,000 and give up his broker/dealer license for at least four years to settle a civil charge of insider trading. He neither admitted nor denied wrongdoing.
Charles Wollmann, a spokesman for the State Investment Council, said Correra briefly used office space — a small conference room — at the council's office in Santa Fe.
"This was part of basic short-term transition assistance in getting the office up and running under the new administration," Wollmann said. "He was not assigned a specific office, phone or any official duties, nor was he paid for these efforts."
Bob Jacksha, who served as Bland's top deputy before becoming chief investment officer at the Educational Retirement Board in January 2007, said he was under the impression that Correra was in the office to work on Richardson's directive to invest more in companies with operations in New Mexico.
Correra "was in the office from time to time" for a period spanning "between weeks and months," he said.
Jacksha said Correra also took part in meetings between office staff and representatives of UniPixel, a Texas company that had a research facility in Albuquerque and was seeking an investment.
The State Investment Council ultimately decided against making the investment, he said.
State corporation records show that Correra was appointed to the board of directors of TCI Medical, an Albuquerque biomedical company, for a term ending in November 2004.
The State Investment Council approved a $7 million investment in TCI Medical in 2003 but lost the money when the company went under three years later.
Because of the investment, the council was assigned some seats on the board of TCI Medical, Wollmann said.
"Initially, Gary (Bland) assigned one seat to our deputy and the other to Correra because of expertise he had in this area," the spokesman said.
John Rice, who served as TCI Medical's chief executive officer, said Correra didn't have a personal financial interest in the company.
"He was a thoughtful and responsible director," Rice said.
Anthony Correra couldn't be reached for comment.
A spokesman for the governor hasn't responded to a request for additional information on the extent of the relationship between Richardson and the Correras.
The first investment deal by the State Investment Council that involved Marc Correra took place during Richardson's first year in office, according to investment records.
Since that time, Correra has been involved in more transactions with the State Investment Office and the Educational Retirement Board and shared in more fees than any other so-called third-party marketer.
Lawyers for Marc Correra have said he did nothing wrong and earned his fees through hard work.
Fees paid to third-party marketers by recipients of government investments are under investigation in New Mexico and other states.
At Richardson's direction, the State Investment Council last month banned the payment of such fees by its money managers.
Bland's Resume Was Sent From Correra Office
Gov. Bill Richardson announced the appointment of state Investment Officer Gary Bland on Jan. 14, 2003, in his office.
The governor's staff distributed a news release, as well as copies of Bland's resume.
Across the top of the resume was a fax communications strip showing it had been sent earlier that day from investment marketer Marc Correra to Billy Sparks, then the governor's communications director.
Sparks said he couldn't explain the fax communications strip but said he had no discussions with Correra about Bland's appointment.
Richardson spokesman Gilbert Gallegos, who wrote the news release announcing Bland's appointment, also said he couldn't provide an explanation for the communications strip.
But he added:
"As the governor made decisions on Cabinet members, staff from the Governor's Office typically obtained resumes from the transition teams in order to craft news releases."
Marc Correra's father, Anthony, served in Richardson's transition as a member of the search committee for a new state investment officer.
Charles Wollmann, a spokesman for the State Investment Council, said a spokesman for the governor asked Anthony Correra to fax Bland's resume.
"Correra was in Santa Fe at the time, and it appears he used his son's Santa Fe office to fax the document," Wollmann said.
Anthony Correra couldn't be reached for comment, and lawyers for his son declined to comment.
UpFront is a daily front-page opinion column. Thom Cole can be reached in Santa Fe at (505) 992-6280 or at tcole@abqjournal.com
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