Former Clovis lawmaker indicted
Accused of fraud in public housing case
A former Clovis state representative is among four men indicted Friday, accused of fraud in the case of an Albuquerque-based housing authority that defaulted on $5 million in bonds sold to the state.
Vincent “Smiley” Gallegos, former director of the Region III Housing Authority, faces 12 felony counts including fraud, embezzlement and money laundering. He faces up to 72 1/2 years in prison if convicted on all counts.
Also charged were former Region III bond accountant Dennis M. Kennedy, bond attorney Robert Strumor and employee David N. Hernandez.
According to indictments filed in the Second Judicial District Court in Albuquerque, Region III purchased lots in Las Cruces in October 2004 for $138,678.
But three months later, the authority loaned $300,000 to its construction company in reference to the lots.
The construction company, Housing Enterprises Inc., then sent the money to a title company, which wrote a check to Gallegos for $300,000, according to court documents.
Gallegos repaid the money as a loan, with 6.25 interest, on July 31, 2006, and resigned the next day.
The agency covers Bernalillo, Sandoval, Torrance and Valencia counties.
The State Investment Council released a report in 2006 alleging the authority misused bond proceeds to pay salaries and benefits, make loans and buy vehicles.
A telephone call placed to Gallegos’ attorney, Paul Kennedy, was not returned Friday.
Gallegos, a Democrat, represented District 63, which includes Curry and Roosevelt Counties, from 1987 to 1996. The district now includes DeBaca and Guadalupe counties.
