ALBUQUERQUE, N.M. — The top legal representative of New Mexico has initiated legal action against the governing body of Western New Mexico University and the outgoing president in an effort to reverse a substantial severance package. This package encompasses a payout nearing $2 million, which was authorized following a critical report that highlighted mismanagement and insufficient financial oversight within the institution.
New Mexico Attorney General Raúl Torrez has brought forward several allegations, which include violations of fiduciary responsibilities, breaches of the state’s open meetings regulations, and concerns regarding constitutional adherence. He also questioned the haste with which a check was issued to the outgoing president, stating that several regents had resigned amid increasing pressure from the governor.
Initially, the Attorney General’s office sought an emergency court order to halt any payments to the former president, only to discover that a check had already been disbursed on January 2. The state is now attempting to block the former president from using the funds, requesting that the court establish a trust to hold the money pending the resolution of the legal case.
Torrez indicated that his office has not received any documentation from the university that clarifies who instigated the discussions regarding the former president’s exit. He suggested that the negotiation process appeared to have been influenced by selfish interests, leading to detrimental consequences for students dependent on the educational system.
“It is absolutely disgraceful that individuals who have been entrusted with the task of ensuring a quality education for students instead exploited the situation for personal gain, lavish trips funded by taxpayers, and ultimately rewarded a colleague with a significant severance package when accountability was demanded,” said Torrez. “Such actions will not be tolerated.”
The legal team representing the former president, however, countered the claims made by the Attorney General. They asserted that it is the regents who are responsible for negotiating and approving compensation and severance deals, and emphasized that public notifications regarding discussions of the president’s contract were made in a local newspaper ahead of a December 20 meeting.
John Anderson, an attorney for the former president, stated that a subcommittee was assigned for negotiating the separation agreement, which was later approved unanimously. “This entire process was handled appropriately, legally, and transparently,” Anderson remarked. “The allegations suggesting any rush in payment by Dr. Shepard are unfounded.”
Court filings reveal that the university’s agreement with the former president allocates more than three times the typical payout amount as part of a no-cause termination. The deal also ensures him a tenured faculty position with an annual salary of at least $200,000 for the next five years, allowing for remote work, in addition to an eight-month paid sabbatical.
This administrative upheaval comes on the heels of an investigation conducted by the state auditor’s office that uncovered over $363,000 in questionable expenditures and the misuse of public resources. Legislators began scrutinizing the president’s expenses in 2023, particularly his practices regarding international travel and the high-end purchases made for furniture, as well as the use of a university purchasing card by his wife, Valerie Plame. At the time, he defended his spending habits by claiming regents had vetted his requests and that he adhered to existing policies governing public fund use.
The ongoing developments may lead lawmakers to consider implementing new regulations as their session begins this month. House Speaker Javier Martinez expressed his support for reforms ensuring that public institutions operate primarily in the best interest of students and taxpayers, rather than for the financial gain of university officials.
“At the end of the day, this is about protecting taxpayer dollars in New Mexico and ensuring that no individual holds authority over the law,” Martinez stated.
