State agency shelves probe of Santa Fe builder

Posted at: 02/03/2013 1:36 PM
By: The Associated Press

SANTA FE, N.M. (AP) - A state agency has shelved its investigation of a complaint against a Santa Fe contractor who left the city five years ago owing millions of dollars to investors, subcontractors and banks.

The Santa Fe New Mexican reports that two investors who lost money to luxury homebuilder William Kalinowski say the state should be ashamed for failing to prosecute him.

Officials from three agencies asked to investigate say they were too short-staffed to handle the case, or it was not their responsibility.

Two investors in Kalinowski's venture asked officials to investigate what they saw as Kalinowski's wrongdoings, such as using money intended to cover construction costs for one project to pay bills on others - and not paying subcontractors.

Officials say investigators failed to find enough evidence to charge Kalinowski.

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