By Jim Scarantino | New Mexico Watchdog
SANTA FE — The New Mexico State Investment Council’s lawsuit to recover losses from an alleged pay-to-play scheme is encountering setbacks in its early stages.
Despite rosy predictions from the SIC’s general counsel, none of the defendants have settled. And a Santa Fe court recently dismissed three defendants.
The dismissals may signal deeper problems for a case that must prove a conspiracy between the former State Investment Officer and investment fund managers to breach fiduciary duties owed to New Mexico’s taxpayers.
The lawsuit alleges that the New Mexico scheme was intertwined with a pension fund scandal in New York that saw the state’s former comptroller, Henry Morris sentenced to prison. Morris was one of the defendants dismissed from the New Mexico suit for lack of evidence.
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