New Mexico ex rel. Foy v. Austin Capital Mgmt., Ltd.

This appeal centered on the second of two qui tam actions filed by former New Mexico Education Retirement Board ("ERB") Chief Investment Officer Frank Foy and his wife Suzanne ("Foys"), attacking the management of the investment portfolios of the ERB and of the New Mexico State Investment Council ("SIC"). The Foys "allege that Defendants, who include Wall Street firms and investment advisors, as well as high-ranking state officials, executed fraudulent schemes that led to the loss of hundreds of millions of dollars at the expense of the [SIC] and the [ERB]. Specifically, the issue this case presented for the Supreme Court's review was whether the retroactive application of the Fraud Against Taxpayers Act, NMSA 1978, Sections 44-9-1 to -14 (2007) ("FATA") violated the Ex Post Facto Clauses of the United States and New Mexico Constitutions. The New Mexico Supreme Court held that FATA was constitutional. The treble damages under FATA were predominantly compensatory and could be applied retroactively to conduct that occurred prior to its effective date. The Court declined to resolve the issue of whether the civil penalties awarded under FATA were punitive and violated ex post facto principles until there was a definitive amount awarded. View "New Mexico ex rel. Foy v. Austin Capital Mgmt., Ltd." on Justia Law