NM securities agency probing fake financial audit

Businessweek -  A New Mexico financial regulator is investigating possible violations of state securities laws by a fake New Mexico Finance Authority audit being distributed to investors. The probe by the state Securities Division was announced Monday at a meeting of the governing board of the Finance Authority, which disclosed last week that a fake 2011 audit had been created and was sent to investors and creditors. Authority officials have blamed a former controller, who left in June, for misrepresenting that financial statements had been audited by an outside firm. The Finance Authority issues bonds and provides low-cost financing to New Mexico governments for capital improvement projects. State Auditor Hector Balderas told the board that his office is investigating the fraudulent audit and will report any criminal violations to law enforcement agencies. Moody's Investors Service has said it's considering whether to downgrade the ratings of nearly $1.3 billion in outstanding bonds issued by the authority. The Securities Division is investigating whether there was fraud against investors, who may have made bought bonds based on false information that the authority's finances had been audited. Read More News New Mexico

NM securities agency probing fake financial audit