Following months of scandals involving "pay-to-play" schemes to win state pension investment business in New Mexico and other states, the federal Securities and Exchange Commission voted unanimously this week to restrict investment advisers from contributing to political campaigns of officials overseeing pension funds.

The SEC on Wednesday voted to prohibit executives at private-equity companies and hedge funds from managing pension-fund assets for two years if they contribute more than a certain amount to officials who have influence in awarding investment contracts. The prohibition applies to spouses of executives, lawyers, affiliated companies or political action committees.

The new SEC rule is similar to New Mexico State Investment Council policy adopted last year in the wake of "pay-to-play" allegations involving state pension funds.

That policy says, "During the term of the investment or contract and two years afterward, any and all recipients of investments or contracts, including the firm, individuals, principals, agents, employees and family members, are prohibited from making any campaign contribution to any elected or appointed official or any person seeking an elected or appointed position that may have influence over the SIO (State Investment Officer), SIC or PEIAC (Private Equity Investment Advisory Committee).

According to an article in Bloomberg.com, investment advisers can donate up to $350 to a politician that the adviser would be able to vote for. The limit is $150 to candidates the adviser can't vote for — for example, an out-of-state candidate.

Last year a founding partner of Aldus Equity, which was contracted as an adviser to the SIC and Educational Retirement Board, pleaded guilty to securities fraud in a New York "pay to play" scheme involving a pension fund. In his guilty plea last year in New York, Saul Meyer said he had recommended investments in New Mexico that were not necessarily in the state's best economic interests, but were done because of pressure from politically connected individuals. The names of those people have not been disclosed publicly, but several placement agents with New York ties were used in New Mexico investment deals.

A federal grand jury and the SEC are investigating this state's investments and the use of third-party marketers, some of whom, such as Marc Correra, have political ties with Gov. Bill Richardson and former State Investment Officer Gary Bland, shared in millions of dollars in fees.

The SIC and ERB fired Aldus after the firm was implicated in the New York case. Bland resigned last year rather than face a vote of no confidence from the SIC. This was shortly after Meyer was convicted and made his statement about New Mexico investments.

Neither Bland nor Correra have been charged with any crime. Both have denied wrongdoing.

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