The Roundhouse in Santa Fe (Photo by cjc4454/flickr.com)
Commission bans Riordan from trading for life, orders him to pay $1.5 million in penalties
The U.S. Securities and Exchange Commission has ruled that Guy Riordan, a former poltiical ally of Gov. Bill Richardson, engaged in fraudlent conduct over seven years in his dealings with the state, and has permanently banned Riordan from trading and ordered him to pay almost $1.5 million in penalties.
The determination, issued Friday, states that Riordan “violated antifraud provisions by making secret cash payments to (former) state treasurer (Michael Montoya) in return for state securities business.” The determination was first reported on by the Albuquerque Journal.
The commission determined that Montoya, who was arrested in 2005 and later convicted in a widespread kickback scheme involving the treasurer’s office, awarded 18 0f 29 bids to Riordan in 2001 and 2002, despite Riordan having the “worst bids among his competitors.”
Riordan was never charged in the criminal case, which led to the federal convictions of Montoya and former state Treasurer Robert Vigil. Riordan retired from the securities industry in 2007.
Guy Riordan
From the Journal:
“Riordan at one time was close to the governor. The two hunted on Riordan’s private preserve and attended sporting events such as boxing matches, the Super Bowl and World Series together.
“When allegations against Riordan surfaced during the federal corruption trial of another former state treasurer, Robert Vigil, the governor fired him from his Game Commission post and gave more than $44,000 in contributions from Riordan to charity.
“Riordan later claimed he was threatened by the FBI for failing to give evidence against Richardson, whom he considered one of his closest friends.”
Heath Haussamen contributed to this report.