The Investments Oversight Committee recommended a bill — patched together from separate proposals by Sens. Steve Neville, R-Aztec, and Tim Keller, D-Albuquerque — that would add some members to the SIC who are appointed by the Legislature and remove some of those appointed by the governor, shifting the balance of power with the SIC.

 

"I think with a broader base (on the SIC) we might have avoided some of the problems we've had," said Neville, who sponsored the bill that was pocket vetoed by Richardson. A pocket veto, which has the affect of a regular veto, occurs when the governor takes no action on a piece of legislation. Neville's SB 460 received only two votes against it in the Senate and passed the House unanimously.

 

The proposed bill also would increase membership of the Education Retirement Board and the Public Employee Retirement Association board.

 

Keller, in a written statement, said, "These funds, the ERB, PERA, and SIC collectively manage tens of billions of dollar in tax payer money and have been involved in federal investigations regarding third party marketers, pay to play, financial fraud and under-performance issues.

 

"My intention working on many of these bills is to address the glaring structural problems relating to oversight, accountability and expertise in fund operation," Keller said.

 

Federal investigators are looking at the role of third-party marketers in public investments. Santa Fe broker Marc Correra shared in nearly $22 million in fees for helping companies win investments with the SIC and a state educational pension fund, according to state records.

 

Correra's father, Anthony Correra, is a close friend of former state Investment Officer Gary Bland, who resigned in October, as well as close to Richardson. Bland was pressured out of the job by some SIC members including State Land Commissioner Pat Lyons, who has said the move was prompted by allegations that Bland pressured investment firms to hire third-party placement agents.

 

Saul Meyer — a co-founder of Aldus Equity Partners, a Dallas-based firm that served as an adviser to the SIC and the ERB — has pleaded guilty to securities fraud charge in New York. In his plea, Meyer admitted that he recommended New Mexico investments from "politically connected individuals" even though he knew some of those investments weren't in New Mexico's best economic interest.

 

Neither Bland nor Marc Correra has been indicted on any criminal charges. Bland has denied wrongdoing, as has a lawyer for Marc Correra.