State finance official admits faking audit

SANTA FE (KRQE) - The former controller of the New Mexico Finance Authority didn’t know whether it was laziness or an oversight, but on Thursday he admitted a huge and felonious blunder.

Greg Campbell pleaded guilty to his crimes in a Santa Fe courtroom but couldn’t really explain why he cooked the books at the NMFA.

“I could say it was a time pressure," he said in court.  "I don’t know why I honestly did it because I know I wasn’t going to benefit from it.

"I did want to make sure we got our bond sale done."

Campbell pleaded guilty to three felony counts including forgery and securities fraud for his role in producing a fake audit circulated in the investment community by NMFA.

The scandal that erupted in July prompted a shakeup in the agency that acts something like a bank selling bonds to loan project money to local governments.  NMFA Chief Executive Officer Rick May was suspended and eventually fired .

Chief Operating Officer John Duff, Campbell's boss, was arrested and suspended, but a grand jury declined to indict him on criminal charges.  He, too, left the agency although it was unclear whether he resigned, retired or was also fired.

The scandal also delayed bond sales forcing local governments to delay the work or seek funding elsewhere.

In September the grand jury indicted Campbell on 12 counts of forgery and securities fraud.

Campbell had no prior criminal history and told the judge he had a family to support.  The judge gave him five years probation.

State investigators say they’re making their entire report public and giving it to lawmakers and the governor next week. 

“To institute whatever reforms they see fit to insure this doesn’t happen again, and that the internal controls and management are strengthened,” said Daniel Tanaka, director of the state Securities Division.

Investigators say no one else will likely face criminal charges.