UPDATE: New Mexico Finance Authority fires CEO Rick May
Posted at: 09/28/2012 12:00 PM
| Updated at: 09/28/2012 5:24 PM
By: Tracy Dingmann, KOB.com
Photo: Rick May
The New Mexico Finance Authority has fired CEO Rick May.
After a 55-minute closed-door executive session Friday morning, state Economic Development Secretary Jon Barela introduced the measure to remove May. It was approved by a vote of 9-1.
Member William Fulginiti cast the only dissenting vote.
May had been on administrative leave with pay since last month after the agency discovered a former controller had filed a fake audit for 2011.
KOB's 4 On Your Side team investigated the fake audit and helped bring it to light.
The board had met in executive session on Sept. 10 to discuss May's status, but delayed making a decision until today.
On Sept, 9, May had sent a letter to the board threatening possible legal action - contending it was premature for the board to consider firing him until audit investigations were completed.
Chief Operating Officer John Duff and former controller Greg Campbell were arrested for fraud and other charges last month involving fake financial statements, which were distributed to investors and could put the state's credit rating at risk.
A grand jury indicted Campbell last week - Duff was not charged.
Governor Susana Martinez said in a prepared statement that "she feels it’s very important for the NMFA board to take the actions that are necessary to determine how the fake audit was produced, to improve financial oversight and day-to-day management at NMFA, and to restore confidence in its operations."
And while the governor does not appoint, hire or fire the director of the NMFA - that's a decision left up to the board's 12 members - she does appoint ten of those individuals.
Stay with KOB for more on this breaking news story.
BELOW: Read a statement issued Friday by Rick May and his memo to the board