A financial firm that helped private companies get New York and New Mexico state investment money has agreed to get out of the placement business and will pay $1 million to the New York State Pension Fund.
California-based Wetherly Capital Group was active in New Mexico from 2003 until 2008, helping arrange five investments worth $145 million from the State Investment Council in three different funds.
The company also was involved in two investments worth $90 million made by the New Mexico Educational Retirement Board.
While New York prosecutors are managing to reclaim some public pension money lost in kickback schemes, their New Mexico counterparts have complained that they don't have the time or resources to pursue such cases—even when the same companies are involved.
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According to state records, Wetherly split its placement fees for the seven New Mexico investments with former Santa Fe broker Marc Correra, who was paid $1.95 million in connection with the deals.
Correra is the son of Anthony Correra, a debarred stock broker and a close friend and political supporter of Gov. Bill Richardson. Anthony Correra also was instrumental in Richardson's appointment of former state Investment Officer Gary Bland, who resigned recently in the face of a no-confidence vote. Bland has denied any wrongdoing.
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