New Mexico Finance Authority Gets Interim CEO

Trustees of the troubled New Mexico Finance Authority voted last week to pay interim chief executive John Gasparich a monthly salary of $12,500 through March 2013.

Gasparich is receiving the same salary still being paid to CEO Rick May, who was placed on indefinite paid administrative leave last month over a bogus audit.

May has not been charged in the case, but criminal charges have been filed by the securities division of the New Mexico Regulation and Licensing Department against chief operating officer John Duff and former Controller Greg Campbell.

Campbell was charged with eight counts of securities fraud, four counts of forgery, racketeering and conspiracy to commit racketeering. Duff was charged as an accessory on eight counts of securities fraud and racketeering.

NMFA delayed July’s planned sale of $40.4 million of senior-lien revolving fund bonds after the agency’s fiscal 2011 audit was determined to be a fake.

Moody’s Investors Service and Standard & Poor’s have placed the NMFA’s ratings under review for possible downgrade.

A special board meeting is set for Sept. 10.       

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New Mexico
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