SILVER CITY, N.M. (KRQE) – After stepping down due to allegations of improper spending, the president of Western New Mexico University said there is no need for a judge to stop him from spending his nearly $2 million severance payout.
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The hearing on Monday comes after the New Mexico Attorney General requested a temporary restraining order until legal issues are resolved, preventing the WNMU president from spending that money just yet.
Western New Mexico University President Joseph Shepard resigned last month following an investigation into his spending on travel and furniture for his residence. Regents guaranteed him a severance of $2 million, which has already been paid out.
Regents also gave him a new contract as a full-time faculty professor with WNMU’s business school. The attorney general announced an investigation into the regents’ actions, and whether they violated their duty to the university by negotiating that deal.
Attorney General Raul Torrez wants to keep Shepard from accessing the payout funds until it’s determined whether it rightfully belongs to him.
“There’s simply too many outstanding questions about how this deal was negotiated, who was involved, and frankly how that decision was made,” said Torrez in a January 6 interview with KRQE.
Shepard’s attorneys responded to the attorney general on Monday, arguing the court has no right to deprive Shepard of money that’s legally in his possession and that the state offered no evidence Shepard wouldn’t be able to return the money if necessary.
The state argued since Shepard is accused of misusing funds, keeping him from spending this money is a step to safeguard public funds.
In a hearing Monday, the judge ruled there is not enough information to justify blocking the president from using the funds but left the option open if the state presents further evidence.
The attorney generals office sent KRQE this statement:
“Today’s decision by the court to not immediately grant our motion for a constructive trust that would safeguard Dr. Shepard’s $1.9 million payout is disappointing, however we respect the Court’s decision and are encouraged that the Court acknowledged the potential for future resolution. We will not stop fighting to rectify this unjust payment to Dr. Shepard and will continue to work toward ensuring there is accountability over New Mexico taxpayer dollars through legislation.”
Shepard’s last day as president of WNMU is Tuesday.