UPDATE: ATTORNEY GENERAL KING ISSUES STATEMENT ON PRC WHISTLEBLOWER LAWSUIT:  From the AG’s spokesman, Phil Sisneros:

Attorney General King took immediate action to address the various concerns mentioned in the email from Mr. Feliciano.  The email mentioned a number of issues including alleged misconduct, a request for legal representation, and a legal opinion.  The allegations and requests raise a number of questions that are now being reviewed by the apprpriate deivision in the Attorney General’s Office.  There are serious allegations contained in Mr. Feliciano’s communication and AG King is treating them as such.  It was Attorney General King who produced the Whistleblower Protection Act and asked the legislature to pass such protection for three years until they were passed, clearly this lawsuit is of great interest to him.

Aaron Feliciano, the former Compliance Director of the Public Regulation Commission’s Insurance Division, alleges in a lawsuit that he was fired for reporting violations of law and abuses of authority.  The suit, filed in Santa Fe District Court, names the PRC, former Superintendent of the Insurance Division Morris J. Chavez, and former PRC Chief of Staff Dan Mayfield as defendants.

Chavez resigned March 4, 2010.

Mayfield resigned to run for county commissioner.

Feliciano’s complaint alleges that as Compliance Director he was responsible for enforcement of the NM Insurance Code.  This included policing insurance companies, advising Chavez regarding enforcement activities, “vetting and interviewing candidates for positions within the Insurance Division, and ensuring that the Insurance Division operated in a fiscally prudent, proper and responsible manner.”

A full copy of the lawsuit is at the bottom of this post.  The lawsuit claims:

Defendants Chavez and Mayfield, however, were more concerned with obtaining government jobs for their friends and political allies, making nice with insurance companies, and avoiding statutory responsibilities to enforce the New Mexico Insurance Code for, and on behalf of, the citizens of New Mexico.

Before his termination, Feliciano claims he voiced his concerns about “improper and/or unlawful acts to Chavez, Mayfield, the NMPRC Commissioners, and other individuals working in the NMPRC.”  He also claims he directly contacted New Mexico Attorney General Gary King about his concerns.  One of the attachments to the complaint is an e-mail to King raising numerous concerns and legal issues.  Feliciano further alleges that he “voiced conerns to Defendants regarding inappropriate hiring of political contributors to conduct insurance examinations and ineffective and costly insurance examinations fro which Plaintiff refused to approve invoices.”

Whistleblower Turns to the AG

His complaints ignored at the PRC, Feliciano claims he turned to AG Gary King.  His lawsuit attaches as an exhibit a copy of a lengthy e-mail he sent to the Attorney General. In the e-mail, he pleaded with the AG to provide legal services so he could enforce the Insurance Code, arguing that the PRC had repeatedly turned down his requests for attorney assistance.  He also requested that the AG provide a legal opinion as to whether the Commissioner of Insurance can hire attorneys to prosecute cases referred by staff. A copy of the e-mail to King is at the bottom of this post.

Refusing to Hire Politically Connected Applicant

On the same day he e-mailed King, according to the complaint, Feliciano informed Chavez by e-mail that Chavez’ friend whom Chavez had been pressuring Feliciano to hire, was not qualified for the position and that hiring him might violate the New Mexico Personnel Act. The position in question was Chief Investigator for the Insurance Division.

Two days later Feliciano claims he was fired. He claims no reason was given for his firing.  A review of the termination letter, attached to the complaint, seems to confirm that.  Feliciano was an exempt employee and not entitled to civil service job protections.

Then come the central allegations to make out a case under the New Mexico Whistleblower Protection Act:

Upon information and belief, Defendant Chavez and Defendant Mayfield orchestrated Plaintiff’s termination in retaliation for Plaintiff’s (a) internal complaints about unlawful or improper acts constituting violations of New Mexico law, malfeasance, waste and abuse of authority; (b) communications to the Attorney General seeking assistance to enforce the Insurance Code and to halt the practices that Plaintiff reasonably and in good faith believed constituted unlawful and/or improper acts; and (c) communications to Defendant Chavez that he could not recommend Defendant Chavez’ friend for the position of Chief Investigator, but instead was required to recommend eligible candidates for the position based solely on qualification and ability, as required by the State Personnel Act.

The suit also makes a claim under the Fraud Against Taxpayers Act.

Of course, Feliciano and his attorneys must prove those allegations.  He is represented by Bryan Davis and William Gilchrist, and Repps D. Stanford of the Moody & Warner law firm.  All are Albuquerque attorneys.

No Comment From the PRC

Gerald Garner, public information officer for the PRC, said when asked for comment, “Unfortunately, because this matter is in litigation, we must refrain from comment.

No Comment Yet From the Attorney General

See update at top of post.

Repps Stanford, one of Feliciano’s attorneys had this to say:

“Thankfully, the New Mexico legislature has finally provided meaningful protections for public employees who, in good faith, blow the whistle on improper and unlawful acts and omissions of public entities and officials in this state. In this lawsuit, we believe the evidence will show that Mr. Chavez and Mr. Mayfield looked adversely on Mr. Feliciano’s efforts to compel the Insurance Division to fulfill its public function, to comply with New Mexico law, and to avoid political favoritism and summarily terminated him in retaliation for those efforts.”

Feliciano issued this statement through his attorneys:  “We have all heard that you cannot get a state job unless you know somebody. But we don’t have to settle for that, because we have whistleblower laws. So, if you are a supervisor for the state and you are told to hire the less qualified applicant as a favor, don’t.  Besides, state law mandates us to hire the most qualified, ‘to avoid the caprice of elected officials’.”

Feliciano’s complaint:
Comp Plaint (Feliciano v PRC)

The e-mail to Attorney General Gary King:
Complaint Ex a (AG Email)