NM Supreme Court to hear pay-to-play appeal

Posted at: 03/23/2013 2:23 PM
By: The Associated Press

ALBUQUERQUE, N.M. (AP) - The New Mexico Supreme Court has agreed to hear an appeal involving two lawsuits that allege corruption in state investment practices.

The lawsuits were filed by whistleblower Frank Foy, former chief investment officer for the Educational Retirement Board.

The Albuquerque Journal reports that the Supreme Court sent out its order on hearing the appeal this week.

However, the court did not explain why it decided to hear the case.

The lawsuits alleged misconduct by the Educational Retirement Board and the State Investment Council in making more than $1 billion in investments.

Foy claimed state officials, financial advisers and numerous Wall Street financial firms executed pay-to-play schemes that led to the loss of hundreds of millions of dollars at the expense of the teachers' pension fund and the investment council.

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