New Mexico Attorney General Raúl Torrez (right) and Rep. Javier Martínez (left) discuss legal against Western New Mexico University Board of Regents and outgoing President Joseph Shepard during a news conference Jan. 9, 2025.
In an amended complaint filed Wednesday in New Mexico’s Sixth Judicial District, state Attorney General Raúl Torrez expanded upon his original allegations last month against former Western New Mexico University President Joseph Shepard and the university’s former Board of Regents. The new filing added an adding an aiding and abetting claim to the complaint, as well as another violation of the state Constitution by the board via its agreement to defend Shepard against future claims. That indemnity clause, the amended complaint stated, violates the constitution by obligating the state “to a contingent liability of an unlimited amount for an unlimited term.
Shepard took over as WNMU president in 2011, and was terminated by the board last December after the New Mexico Office of the State Auditor published a report detailing the misuse of hundreds of thousands of public funds. That report followed a December 2023 investigation by Searchlight New Mexico on the university leadership’s lavish spending. The case was referred to the State Ethics Commission. Shepard ultimately received a $1.9 million severance package that Torrez unsuccessfully tried to halt. The amended complaint restates the prior claims of breach of fiduciary duty, lack of consideration, unconscionable contract terms, violations of the Anti-Donation Clause, violations of the Open Meetings act, and unjust enrichment.
Earlier this week, Torrez and state lawmakers announced a proposed constitutional amendment to strengthen oversight of university regents and administrators.
“Public officials and university administrators have a legal and ethical responsibility to act in the best interest of the institutions they serve, not their own financial gain,” Torrez said in a statement accompanying a news release announcing the amended complaint. “This case underscores the urgent need for greater transparency and accountability in higher education governance, which is why we are taking bold legislative action to prevent similar abuses in the future.”
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