Current NMFA COO, former controller arrested for allegedly forged audit (read the documents)
Posted at: 08/08/2012 9:05 AM
| Updated at: 08/08/2012 12:01 PM
By: Tracy Dingmann, KOB.com
 Greg Campbell |
Current NMFA COO John Duff and former New Mexico Finance Authority controller Gregory Campbell have been arrested in connection with an allegedly forged audit that could cause New Mexico's credit rating to collapse.
Campbell has been charged with eight counts of securities fraud, four counts of forgery and one count each of racketeering and conspiracy to commit racketeering in connection with a fake audit.
Campbell, the former controller and the current chief operating officer for the New Mexico Finance Authority was arrested Wednesday in connection with submitting a forged audit and misrepresenting financial statements for the fiscal year 2011.
4 On Your Side broke the story about the forged audit, which could cause New Mexico's credit rating to spike and cost the state more to obtain loans for doing state business.
We were also the only station to talk to Campbell, who told KOB he had no criminal intent in submitting the audit.
A statement from the New Mexico Licensing and Regulation Department said Duff, the current chief operating officer for NMFA, has also been arrested and charged as an accessory on eight counts of securities fraud and racketeering.
Duff, who was the immediate supervisor of Campbell, also has been charged with allegedly conspiring to engage in a pattern of racketeering activity by fraudulently misrepresenting the financial statements of the NMFA to ratings agencies, investors, bond buyers, and the State of New Mexico, according to the criminal complaint.
The criminal complaint also alleges that Campbell, with the explicit knowledge and permission of Duff, misrepresented approximately $40 million in the financial statements for NMFA for 2010 and 2011. Instead of reporting a loss of $40 million in revenues, they are accused of concealing that loss by fraudulently reporting it under grant expenses.
According to the complaint, "...Campbell represented that the decision to reclassify the reduction in appropriations revenue as 'grant expense' was in fact a misrepresentation of the fiscal year 2011 financial statements as it did not reflect the true financial condition of the NMFA. Campbell accepted the characterization that the action to fraudulently misrepresent the financial statements was in fact 'cooking the books' of the NMFA."
Campbell and Duff were booked into Santa Fe County Jail and are subject to a $20,000 cash or surety bond.
Stay with KOB for continuing coverage.
< Securities agents raid NMFA
< Campbell: Audit not malicious
 |
Tweet |
|
