Stop the Lunacy of it All
Bill to stop state from working against itself to prove fraud in same lawsuit
Friday, January 29, 2010
SB- 220 -News Availability After Committees Committee
Senate Lounge, approximately 10:30 a.m.
Senator John Ryan- 505-238-3733
Santa Fe--Ask the average citizen what he or she thinks about the state working against itself and paying for lawyers to defend state employees it has an interest in suing and you’d probably hear, “It’s crazy.”
But that is exactly what the state of New Mexico is doing.
One state senator wants the lunacy to end.
State Senator John Ryan (R-Bernalillo-10) wants to stop the state from having to pay to defend state employees who are being sued for fraud or other government wrongdoing on the job when it is the state that is also involved in pressing the charges.
Senator Ryan has introduced Senate Bill 220 in reaction to the high-profile whistleblower case of Foy v. Vanderbilt lawsuit. In that case, the state’s risk management division is paying to defend state employees the state itself has an interest in suing for alleged fraud. According to news reports, that lawsuit alleges the former state investment officer and other state employees were instructed to make investments in exchange for political contributions.
“This is just crazy, the state is working against itself and its interests,” Senator Ryan said. “In a case like this, the state spends millions and millions to defend state employees it is also has an interest in suing to recover money that was defrauded. My bill would not require the state to use taxpayer dollars to defend state employees it also has an interest in suing for fraud or other wrongdoing. The state is paying legal fees against our own state interests to prove fraud and recover millions in damages. How ridiculous is that?”
Senator Ryan said the state would not have to defend cases where the Attorney General has applied the current Fraud Against Taxpayer Act to determined that a alleged fraud case against government employees is legitimate and can move forward.
The bill is scheduled to be presented before the Senate’s Committees Committee on Friday morning to determine whether it is relevant to this budget session. Senator Ryan said it is. “It is germane because it is budget-related. It protects the state from also paying a judgment in fraud cases where the state is being the sued, where it is the plaintiff.”
Senator Ryan said, “If the state is the plaintiff, if the state is suing a state employee for fraud, the state is not required to then turn around and defend the employee and would not be required to pay a judgment if fraud is proven against the state employee.”
Bill to stop state from working against itself to prove fraud in same lawsuit
Friday, January 29, 2010
SB- 220 -News Availability After Committees Committee
Senate Lounge, approximately 10:30 a.m.
Senator John Ryan- 505-238-3733
Santa Fe--Ask the average citizen what he or she thinks about the state working against itself and paying for lawyers to defend state employees it has an interest in suing and you’d probably hear, “It’s crazy.”
But that is exactly what the state of New Mexico is doing.
One state senator wants the lunacy to end.
State Senator John Ryan (R-Bernalillo-10) wants to stop the state from having to pay to defend state employees who are being sued for fraud or other government wrongdoing on the job when it is the state that is also involved in pressing the charges.
Senator Ryan has introduced Senate Bill 220 in reaction to the high-profile whistleblower case of Foy v. Vanderbilt lawsuit. In that case, the state’s risk management division is paying to defend state employees the state itself has an interest in suing for alleged fraud. According to news reports, that lawsuit alleges the former state investment officer and other state employees were instructed to make investments in exchange for political contributions.
“This is just crazy, the state is working against itself and its interests,” Senator Ryan said. “In a case like this, the state spends millions and millions to defend state employees it is also has an interest in suing to recover money that was defrauded. My bill would not require the state to use taxpayer dollars to defend state employees it also has an interest in suing for fraud or other wrongdoing. The state is paying legal fees against our own state interests to prove fraud and recover millions in damages. How ridiculous is that?”
Senator Ryan said the state would not have to defend cases where the Attorney General has applied the current Fraud Against Taxpayer Act to determined that a alleged fraud case against government employees is legitimate and can move forward.
The bill is scheduled to be presented before the Senate’s Committees Committee on Friday morning to determine whether it is relevant to this budget session. Senator Ryan said it is. “It is germane because it is budget-related. It protects the state from also paying a judgment in fraud cases where the state is being the sued, where it is the plaintiff.”
Senator Ryan said, “If the state is the plaintiff, if the state is suing a state employee for fraud, the state is not required to then turn around and defend the employee and would not be required to pay a judgment if fraud is proven against the state employee.”
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