NM Inks $24M Deal With Vanderbilt In Pay-To-Play Suit

Law360, Los Angeles (February 22, 2013, 11:15 PM EST) -- The state of New Mexico has reached a $24 million settlement with Vanderbilt Capital Advisors LLC in its suit over a pay-to-play scandal involving mortgage-backed securities state agencies bought from Vanderbilt, the state said Friday.

The deal resolves a suit originally filed by former state education investment official Frank Foy in 2008, alleging state agencies were pressured by the administration of former New Mexico Gov. Bill Richardson to invest in a complex array of risky mortgage-backed securities provided by Vanderbilt and related firms. The firm's executives...
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