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SANTA FE, N.M. (AP) - A state attorney general's investigation into an Albuquerque-based regional housing authority is headed to a grand jury.
Witnesses have been subpoenaed to testify early next month, according to a person familiar with the criminal investigation who asked not to be named because of the confidential nature of the proceedings.
Attorney General Gary King has been looking into the operations of the Region 3 Housing Authority, which defaulted on payments for $5 million in bonds it sold to the State Investment Council.
In an effort to get the money back, the council has separately filed a civil lawsuit against the former executive director of the authority, Vincent "Smiley" Gallegos, and the lawyer for the authority at the time.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
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