Despite the State Investment Council’s (SIC) having done “due-diligence” and finding that an investment in Earthstone International was not in the taxpayers’ best interest, Governor Richardson, who has unilateral control over the SIC, pushed the SIC to invest 9 million taxpayer dollars in the firm. Worse, even after Earthstone failed to live up to its obligations, the SIC continues to invest in the firm.
Jim Scarantino details the players in this story in his new story “Friends in High Places: Anatomy of the SIC’s Bad Investment in Earthstone International,” which is available here. Jim Scarantino’s full report can be downloaded here.
Scarantino previously reported on the $9 million given to Earthstone in his article, “The $9 Million Loan to Earthstone International, or, “A Funny Thing Happened on the Way to Santa Teresa” which is available here.