January 6, 2025
Silver City, NM — Today, New Mexico Attorney General Raúl Torrez filed an emergency motion for a temporary restraining order to prevent Western New Mexico University (WNMU) from disbursing a $1,909,788 severance payment to departing President Dr. Joseph Shepard. In seeking to prevent a gross misuse of funds appropriated to support the education of Western’s student population, the New Mexico Department of Justice (NMDOJ) argues that the Board of Regents acted “contrary to its fiduciary duty to the university, pledged public funds for a severance payment that is not supported by an employment contract, is not accompanied by legitimate consideration to the State, and is unconscionable as a violation of public policy and the public interest.”
Noting that the proposed severance is more than three times what Dr. Shephard would have received had he been terminated under the provisions of his existing contract, the Department’s motion highlights both the inexplicable timing and lack of transparency in the Board’s negotiation of this unjustifiable golden parachute.
“This payment is an egregious misuse of public funds and a betrayal of the Board’s responsibility to act in the best interest of the university and its students,” said Attorney General Torrez. “Dr. Shepard voluntarily resigned, and the Board had ample opportunity to negotiate a reasonable or no-cost separation agreement. Instead, they chose to pledge nearly $2 million in taxpayer money without justification or consideration of the public good.”
The NMDOJ’s motion requests that the court:
- Issue an emergency temporary restraining order to prevent the Board from disbursing the severance payment before a full evidentiary hearing on the State’s Application for Preliminary Injunction.
- Hold a hearing prior to January 15, 2025, the deadline for the payment as stipulated in the Separation Agreement or issue an ex parte order until the hearing can be scheduled.
- Enjoin the Board, prohibiting them from disbursing the payment until a Special Audit requested by Western, the Board, and Dr. Shepard is complete and the report available.
This legal action follows troubling findings from a limited examination conducted by the New Mexico Office of the State Auditor (OSA). The examination, which reviewed expenditures related to procurement and travel between 2018 and 2023, uncovered multiple instances of wasteful spending and improper use of university funds. Additionally, a more comprehensive forensic audit, requested by the Board and Dr. Shepard and approved by the OSA in December 2023, is still underway.
“The State Auditor’s initial findings underscore the urgency of this matter,” added Torrez. “The Board’s attempt to squander public funds appropriated for the benefit of WNMU students, and the surrounding communities violates their legal duties of undivided loyalty to serve the public good and must be stopped.”
The New Mexico Department of Justice is dedicated to safeguarding the state’s public institutions and ensuring that taxpayer funds are managed responsibly and transparently. A copy of the motion, filed in the Sixth Judicial District Court, is below.
