New Mexico Attorney General Raúl Torrez Files Lawsuit Against Western New Mexico University Board of Regents and President

The New Mexico Department of Justice filed a supplement to its emergency motion for a temporary restraining order after learning that Western New Mexico University has already processed a $1.9 million severance payment to Dr. Joseph Shepard. The supplemental pleading seeks to restrain Dr. Shepard from spending that money and asks the Court to establish a constructive trust to safeguard those funds until the underlying legal dispute over the Board of Regents failure to uphold their fiduciary duty in awarding a new contract to Dr. Shepard is resolved.

In addition, the New Mexico Department of Justice filed a lawsuit against Western New Mexico University’s (WNMU) Board of Regents and its former President, Dr. Joseph Shepard, alleging a breach of fiduciary duty, lack of consideration, unconscionable contract, violations of the anti-donation clause, violations of the open meetings act, and unjust enrichment. The lawsuit seeks to invalidate the Separation Agreement, recover the severance payment, and invalidate Shephard’s new employment contract, arguing that the university failed to act in the public interest and violated the most basic precepts of open government by negotiating this contract in secret.

“The decision by the Board of Regents and Dr. Shepard to ignore our requests for information while simultaneously expediting the $1.9 million golden parachute at the center of our investigation is disgraceful,” said Attorney General Torrez. “It is yet another example of the greed, self-dealing and arrogance that has been the hallmark of Dr. Shephard’s administration. Not only will we continue to fight to recover these funds through legal action in the courts, we are also committed to working with the leaders of the New Mexico legislature to comprehensively overhaul the entire legal framework surrounding the oversight and management of all public universities in our state.”

Attorney General Torrez was joined today by Speaker Javíer Martinez who, like other legislative leaders, supports the need for comprehensive reform.

“The focus of our public universities is supposed to be on helping New Mexico students build their careers,” said New Mexico Speaker of the House Javíer Martinez. “The alleged lavish spending and abuse of taxpayer dollars by Dr. Shepard is unconscionable. By allowing this buyout, the WNMU Regents have further eroded trust in our institutions. I want to thank Attorney General Torrez for taking swift action. State lawmakers stand ready to work with AG Torrez to prevent such abuses of public trust in the future.”

Lawyers with the New Mexico Department of Justice are currently working with the Speaker and other analysts to develop a legislative package to provide more oversight and independent checks for the powers conferred on both regents and senior executives at all of New Mexico’s higher education institutions. The proposal is expected to address a range of issues, including how regents are vetted and selected, how and under what circumstances they can award contracts and severance payments, and streamlining the process for removing them from office whenever they breach their duties to the public and the institutions they are appointed to serve. The legislative package is expected to include proposed amendments to both the New Mexico Constitution and enabling legislation.

Supplement to the State’s Emergency Motion Filed Jan. 6

Complaint

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