NM agency borrows $458K complete audit

FARMINGTON, N.M. (AP) - A financial regulatory agency in New Mexico took out a $458,000 emergency loan from another state agency to continue an audit of a failed Farmington business.

The Farmington Daily Times reports that the Financial Institutions Division got the loan because a funding shortfall became apparent after the Legislature appropriated money to agencies for the fiscal year.

The loan — the largest emergency loan ever received by the New Mexico Regulation and Licensing Department — was approved June 21 by the state Board of Finance, which provides emergency funding to state government agencies.

The Regulation and Licensing Department may request an appropriation from the Legislature during its next session to repay the loan.

Auditors are expected to turn over their report about the firm to law enforcement officials in November or December.

It has been more than five months since New Mexico Title closed abruptly Jan. 30, leading to revelations of missing funds and scrutiny from state regulators and law enforcement.

Darryl Millet, an Albuquerque attorney who is leading the audit, said auditors have recovered nearly $493,000 in funds linked to New Mexico Title Escrow.

He reported auditors found $15,000 in cash in a file drawer at the business, and numerous undeposited checks in drawers and unopened mail.

State investigators arrived Feb. 3 to look into New Mexico Title in the wake of customer complaints and published accounts of problems at the business.

When investigators obtained a court order to enter locked rooms in the business, they found an ornate wooden bar, a large pool table and refrigerated beer kegs.

Investigators later learned New Mexico Title Co. funds paid for a $132,000 executive suite at the Denver Broncos' football stadium.

They also found some accounts were filed using only the first names of account holders, making it next to impossible for investigators to track down account holders who are owed money.

Investigators believe at least $1 million is missing from escrow accounts.

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Information from: The Daily Times