Second New Mexico Plan Suspends Aldus
April 22, 2009
The $11.5 billion New Mexico State Investment Council (SIC) has suspended private equity advisor Aldus Equity, due to an ongoing investigation in New York.
The SIC is the second plan in the state to suspend Aldus. Last week, the $6.6 billion New Mexico Educational Retirement Board's (NMERB) made a similar decision.
In published reports, SIC spokesman Charles Wollman, said that the council will be looking for more transparency in the future, not only from Aldus, but from all of its investment partners.
The suspensions come as a result of an alleged kickback scheme in New York. Two aides of former state comptroller Alan Hevesi--Henry Morris and David Loglisci--were indicted by the state's attorney general, Andrew Cuomo, and charged by the SEC. The New York State Common Retirement Fund had a $375 million investment in Aldus' New York Emerging Fund, which allegedly generated $262,000 in management fees for Morris.
When the NMERB first decided to suspend Aldus, officials from the firm said, "Aldus principals are working 24-7 to address these issues with officials from New Mexico ERB and other clients. There are many misperceptions, and we will be diligent to communicate with current, prospective and past clients regarding the matter. It is important to note the SEC complaint and related charges are against Henry Morris, not Aldus."
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