The $12.8 billion New Mexico State Investment Council, Santa Fe, has received separate subpoenas from the U.S. Justice Department, a federal grand jury and the SEC for documents pertaining to its relationship with Aldus Equity, the council's private equity consultant until it was terminated in April.
The council, which released copies of the subpoenas Nov. 17, has yet to respond to the requests for documents, Charles Wollmann, wrote in an e-mail response to questions.
“There are literally tens of millions of pages of responsive documents. We are working with investigators to prioritize, and provide them with everything they want to see,” Mr. Wollmann wrote.
The requests are part of pay-to-play investigations involving placement agents, third-party marketers and public pension plans, including the New Mexico council.
The grand jury is requesting all e-mails of Gary Bland, the state's former investment officer, since Jan. 1, 2003. The U.S. Department of Justice's requests include a list of contracts between the council and its money managers and any documents listing placement agents.
The SEC is seeking documents relating to the selection and retention of Aldus and communications between third-party marketing firms Ajax Investments, Crosscore Management and SDN Advisors and Marc Correra, the son of Anthony Correra, who worked on New Mexico Gov. Bill Richardson's transition team when he took office. The SEC is also seeking communications between the council and Anthony Correra.
Mr. Bland resigned as state investment officer on Oct. 21, the day before the council was to vote on a no-confidence motion on him. On Oct. 6, Aldus founder Saul Meyer pleaded guilty to fraud charges brought by New York Attorney General Andrew Cuomo concerning a pay-to-play probe of the $126 billion New York State Common Retirement Fund, Albany.
The New Mexico council in the past had refused to release the subpoenas, but in a letter to the council, Bob Jacksha, interim state investment officer and current CIO at the $6 billion New Mexico Educational Retirement Board, Santa Fe, said in a letter to council members that the subpoenas were being released “in the staff's ongoing legal review” and with “input from council members” and Mr. Jacksha's own direction. Mr. Jacksha did not elaborate.