ALBUQUERQUE, NM — New Mexico’s top prosecutor is teaming up with Western New Mexico University’s regents and outgoing regents to undo a lucrative severance package that included about $2 million in payouts approved following a scathing report detailing the school’s wasteful spending and lax financial oversight. I sued the president.
State Attorney General Raúl Torrez outlined several charges, including breach of fiduciary duty and violations of the state’s open meetings law and state constitution. He also raised questions about who at the university rushed to issue the check to Shepherd, noting that some regents had already resigned under pressure from the governor.
The Attorney General’s Office initially filed an emergency motion in state district court to delay payment to Shepherd, unaware that the check had already been issued on Jan. 2.
The state is now asking the court to prohibit Shepherd from spending the money and to set up a trust where the money can be held until the legal dispute is resolved.
Despite the university’s request for documents, Torrez said his office has not received any records to show who initiated the negotiations related to Shepherd’s departure. He suggested that the process was tainted by greed and arrogance and that students would pay the price.
“It is truly shameful that those charged with ensuring that people get the education they need to build a better future have used that opportunity to enrich themselves, go on luxury taxpayer-funded trips, and even use it to get detained. no see. You’re handing a golden parachute to one of your friends,” Torrez said. It is intolerable.”
Shepherd’s legal team disputed the attorney general’s claims, saying a notice in a local newspaper said the regents were responsible for negotiating and approving executive compensation and severance agreements and that the board would discuss the president’s contract at its Dec. 20 meeting. I raised it.
Shepherd’s attorney, John Anderson, said in a statement to The Associated Press that a subcommittee was appointed to negotiate a separation agreement before the board unanimously approved it.
“This entire process was handled appropriately, legally, and transparently,” Anderson wrote. “Doctor. Shepherd was in no hurry to pay. Any claims to the contrary have no legal or factual basis.”
According to court documents, the university agreed to pay Shepherd more than three times the amount he would have been required to pay if he had been fired without cause. The contract also guarantees Shepard a tenured professorship with at least $200,000 per year for five years. He has been granted an eight-month sabbatical, fully paid and able to serve remotely.
The leadership shakeup follows an investigation by the state Auditor’s Office that found more than $363,000 in wasteful spending and inappropriate use of public funds.
State lawmakers began raising questions in 2023 about Shepherd’s spending on international travel and luxury furniture purchases, as well as his wife, Valerie Plame’s, use of her college purchase card. At the time, Sheppard said the regents had researched his spending requests and were familiar with their policies regarding the use of public funds.
The incident will force lawmakers to consider new legislation in sessions starting this month.
House Speaker Javier Martinez said Thursday he would support changes to ensure public institutions are managed in the best interests of students and taxpayers rather than the personal interests of university officials.
“At the end of the day, this is about protecting New Mexicans’ money and making sure no one is above the law,” he said.
