State police are investigating a woman who, until recently, worked as an accountant at the New Mexico Finance Authority where she is suspected of transferring more than $59,000 in state funds to her boyfriend and his jewelry business.

In a police affidavit written to obtain a search warrant, state police detective Eric Schum said a senior accountant at NMFA noticed in a routine audit in January seven "suspicious transactions" instigated by Valerie Sandoval, 38.

The transactions ranged from $2,543 to $14,469. All were made between Aug. 28 and Dec. 31 and all payments went to Native Touch, Inc. or M.L. Garcia, neither of which were on the list of approved NMFA clients.

Police confirmed with Sandoval's co-workers that she was dating a man named Maynard Garcia who worked at Native Touch Gallery, which had an address listed at a shopping complex on the Plaza.

Neither Sandoval nor Garcia has been arrested or charged, state police spokesman Lt. Eric Garcia said on Tuesday. "The state police investigation is continuing," said Lt. Garcia, no relation to Maynard Garcia. "Investigators will be conducting more interviews."

The search warrant affidavit, dated Feb. 5, said Sandoval had been put on administrative Jan. 6. Reynold Romero, general counsel for the NMFA, said Sandoval no longer works for the NMFA. Romero said he couldn't comment on whether Sandoval quit or was fired. He said the agency is cooperating with the investigation.

In addition to the suspected embezzlement, Sandoval might have fraudulently copied the electronic signature of a supervisor, the affidavit said. The supervisor told police that he doesn't remember whether he signed the documents Sandoval gave him to authorize the payments to Maynard Garcia.

In the Santa Fe Arcade, there still is a sign for Native Touch Gallery hanging in the hallway. But the space is empty and has a "for rent" sign.

Phillip Garcia of Southwest Asset Management said the gallery, which was rented to Maynard Garcia, moved out in September — the month after the checks from the NMFA began coming. The phone for the gallery has been disconnected.

Several neighboring shopkeepers declined to comment when asked about Garcia and Native Touch.

The Finance Authority is a quasi-public agency that issues bonds and makes loans to provide low-cost financing for local and state governmental projects. NMFA handles about $2.9 billion in investments. The 12-member authority is made up mostly of cabinet secretaries and others who are appointed by the governor.

Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at roundhouseroundup.com.