NM Supreme Court rules Foy fraud suits constitutional
ALBUQUERQUE, N.M. — The New Mexico Supreme Court ruled Thursday that two civil lawsuits charging widespread fraud and insider dealing in the way billions of dollars in state investments were handled can proceed after finding that the Fraud Against Taxpayer Act is constitutional.
Two civil lawsuits filed under the act by former Educational Retirement Board investment chief Frank Foy have been on hold for almost two years after district judges and the Court of Appeals ruled that triple-damage awards under the act were unconstitutional because they were punitive.
On Thursday, the Supreme Court ruled that Foy can receive triple damages if he can successfully prove his allegations of widespread corruption in how state investments were handled.
Foy alleged a scheme in which state investments were placed with financial firms that paid fees to placement agents who were politically connected to then Gov. Bill Richardson’s administration.
Read more: http://www.abqjournal.com/604213/abqnewsseeker/nm-supreme-court-rules-foy-fraud-suits-constitutional.html