New Mexico District Judge Stephen Pfeffer has dismissed a pay-to-play suit filed by former Educational Retirement Board (ERB) Investment Officer Frank Foy and the state watchdog on grounds that the claims and alleged wrong doing pre-date the pertinent state law.

According to the April 28 decision, Pfeffer said that claims should be thrown out on "ex post facto grounds" due the fact that the state's Fraud Against Taxpayer Act did not take effect until July 1, 2007. Foy's initial lawsuit, which was filed in July 2008, stated that ERB voted in May 2006 to invest in the Chicago-based firm's CDO-related securities products.

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