BREAKING NEWS: It appears county investment advisor, not treasurer, is to blame for lost money

It appears that Doña Ana County’s investment adviser, not the treasurer, is going to have to answer some tough questions about lost public money.

In question are two $10 million wire transfers of county money made on April 21 and May 12, both Fridays. Neither was invested until the following Monday, and the county lost some $10,000 in interest because of that.

Robert Burpo, a former state representative from Albuquerque, told the county commission during a tough grilling on Tuesday that, had his company, LPL investments, received the money before 1 p.m. Mountain Standard Time on both Fridays, he would have been able to invest it in time for it to earn interest during the weekend. He said repeatedly he did not know where the money was for those weekends, but said he had not received it in time to invest it.

Wire transfers leave the county’s bank, Wells Fargo, and are then sent to a federal bank before being transferred to the Bank of New York and then to LPL Investments, Burpo’s company.

During Tuesday’s commission meeting, Burpo speculated that the money was probably in the hands of the feds or Bank of New York and not earning interest over the two weekends in question.

Some commissioners expressed doubt at the meeting, saying they believed someone must have earned interest on that money, and they wanted to know who.

The Bank of New York told the county auditor Thursday afternoon that the April 21 wire transfer was in LPL’s account by 1:04 p.m. Eastern Standard Time – 11:04 a.m. local time, according to Commissioner Bill McCamley. The May 12 transfer was in LPL’s account by 2:30 p.m. Eastern Standard Time, a full 30 minutes before Burpo’s deadline to invest it for the weekend.

Burpo could not immediately be reached for comment.

Treasurer Jim Schoonover, who at Tuesday’s meeting took credit for both snafus, said he has requested written records from the Bank of New York that will prove what the county was told Thursday.

“I would not have transferred the funds if I had thought they would not have been invested that day,” Schoonover said. “I’m trying to get proof of what happened. I want it in writing.”

This would be good news for Schoonover, who has been the subject of repeated probes by the county’s internal audit advisory committee for months. Schoonover has worked hard and significantly increased the amount of interest the county is earning from its investments, but smaller issues that have created the appearance of possible impropriety have tarnished his work.

The question remains, then, what did Burpo’s firm do with $20 million in public money during those weekends?

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