The Official No-Comment

I ran into former Gov. Bill Richardson about an hour ago. He was in the Capitol TV studio for some appearance on a national news program.

Naturally I asked if he had any comment on the recent law suits against former State Investment Officer Gary Bland, Guy Riordan, Anthony and Marc Correra, etc.

Naturally, he said he didn't have a comment.

The Latest in the Foy Suit

Former Education Retirement Board investment officer Frank Foy filed an amended version of his whistle-blower lawsuit this week in state district court.

In it, he claims state Finance Secretary Katherine Miller pressured members of the State Investment Council to keep SIC director Gary Bland last October in the days before Bland resigned.

Miller on Tuesday denied the accusation. But backing her up was state Land Commissioner Pat Lyons, a member of the SIC who was actively pushing for a no-confidence vote for Bland. He said that nobody tried to pressure him or any other members he knows of, to keep Bland on the job.

Lyons, a Republican, usually isn't the first to defend the administration of Democrat Bill Richardson. In fact he and Richardson have been on opposite sides of several issues -- including the state investment scandals.

See my story in Wednesday's New Mexican HERE.

Doug Brown to Head SIO Search

Gov. Bill Richardson just announced he's appointing Doug Brown to head the search for a new State Investment Officer to replace recently resigned Gary Bland. This is the same Doug Brown who in 2005 was appointed by Richardson in 2005 to be interim state treasurer when then-treasurer Robert Vigil, indicted (and later convicted) in a federal corruption investigation, had resigned under threat of impeachment.

Bland resigned in the face of a growing state investment investigation and a threatened vote of no confidence by the State Investment Council. Richardson's press release doesn't mention Bland's name.

Brown currently is dean of the University of New Mexico’s Anderson School of Management.

On the search committee are three SIC members Andrew Davis, Stephen Feinberg and Peter Frank -- all Richardson appointees -- who signed a resolution seeking a no-confidence vote for Bland.

“Doug Brown has a history of unselfish service to the state and I appreciate the fact that he is willing to head the search for one of the most important positions in state government,” said Gov. Richardson, who is the chairman of the State Investment Council.

Also on the search committee is Katherine Miller, secretary of the state Department of Finance.

Richardson also named Bob Jacksha, currently chief investment officer for the Education Retirement Board, to serve as interim SIO during the search. Jacksha has worked before as deputy SIO for the SIC.

Guv Candidates Respond to Bland Resignation

Lt. Gov. Diane Denish, seeking the Democratic nomination for governor made the following statement about the state investment officer's resignation.

“I’ve been deeply disturbed by the recent reports about misuse of investment dollars, and clearly some changes were needed at the New Mexico Investment Council. This resignation makes that fresh start possible. Just like New Mexico families must invest their own money wisely, the state must do the same. The next State Investment Officer must be a smart investor of taxpayer dollars and a tireless champion for increased oversight and accountability. The people of New Mexico deserve no less.”

Here's something to ponder: When Denish was poised to assume the governor's office when Gov. Bill Richardson had been nominated for Commerce secretary (a nomination scuttled by another investment scandal), did her transition team have a pick for investment officer?

Meanwhile, Susana Martinez, one 0f four Republican candidates for governor, released this statement. To nobody's surprise she takes a shot at Denish -- and she doesn't even mention Richardson, who hired Bland.

“There is absolutely no way to deny the obvious that this administration has been infiltrated to its core with corrupt officials abusing the public trust. With New Mexico experiencing a massive budget deficit that has left our state unable to comply with obligations to its citizens, including our students, those running state government have been involved in schemes to steal and misuse taxpayer dollars. It is unfathomable to me how Diane Denish conveniently claims credit for perceived administration successes, but shirks responsibility of its obvious failures. The notion that Denish can change the way business is done in Santa Fe is simply not credible. I have taken on corrupt officials and brought them to justice, and as governor, I will do the same in the Roundhouse.”

Update on Gary Bland

Gary Bland, who resigned as state investment officer today, was facing a vote of no confidence today due to evidence he was pressuring investment firms to do business with certain third-party marketers, the Associated Press is reporting.

Strangely, the only public place online where I could find the latest AP version of the story was on a Delaware site! CLICK HERE

AP reporter Barry Massey reported :

State Land Commissioner Pat Lyons said a private law firm hired by the council had gathered information that Bland pressured investment firms doing business with the state to hire certain third-party marketing or placement agents. He declined to identify the marketers, saying he didn't want to jeopardize investigations by the U.S. Attorney's Office and the Securities and Exchange Commission.

Bland, investmentment officer since early 2003, is the first appointee of Gov. Bill Richardson who has resigned due to issues involving investment scandals.

Bland Resigns

The Associated Press is reporting the State Investment Officer Gary Bland has resigned.

According to the wire service, Bland, who Gov. Bill Richardson appointed in 2003, didn't say why he's quitiing. "However, he leaves amid a federal investigation of investments in New Mexico and fees paid to placement agents," the report notes.

This comes after Saul Meyer of Aldus Equity, who pled guilty in a New York investment fraud case, said that he'd recommended investments in this state that were "pushed on me by politically connected individuals in New Mexico."