The Roundhouse in Santa Fe. (Photo by Peter St. Cyr)
Fraud Against Taxpayers Act doesn’t apply retroactively, judge rules
One of two lawsuits seeking to recover hundreds of millions of dollars on behalf of taxpayers that was lost in bad investment deals was dismissed by a state district judge on Wednesday, the Albuquerque Journal is reporting.
That’s because the Fraud Against Taxpayers Act, the statute under which Frank Foy’s lawsuit was filed, doesn’t apply retroactively to acts committed before the law took effect, Santa Fe District Judge Stephen Pfeffer ruled.
Foy was seeking to recover between $150 million and $230 million on behalf of taxpayers. If successful, he would have been allowed to keep a big chunk of that for himself.
From the Journal article, it sounds as if an appeal is possible. Foy’s attorney, Victor Marshall, was quoted as saying some of the alleged violations of the act occurred after the act took effect on July 1, 2007. He also said retroactive civil statutes are constitutional in New Mexico.
The case centers on investments Vanderbilt Financial made on behalf of the state. The state lost almost all the money Vanderbilt invested between 2004 and 2006. Vanderbilt was heavily involved in subprime mortgage investments.
Foy’s lawsuit also included Marc and Anthony Correra as defendants. Anthony Correra was a close friend of Gov. Bill Richardson, and his son Marc received millions in placement fees for helping convince the state to hire Vanderbilt.
Foy’s second, massive lawsuit alleging widespread pay to play in the Richardson administration and naming dozens of defendants is still pending in Valencia County.