By Frost McGahey
NM State Auditor Joseph Maestas
On October 17, 2025, at the Regents' meeting at Western New Mexico University, the auditors found no "fraud, misappropriation of assets, incompetence, personal financial gain, or corruption by Dr. Shepard or the former Board of Regents."
The Jaramillo Accounting Group did the comprehensive audit for $330 per hour for a total of $285,000 which was paid by WNMU. The audit findings were completed on September 11 and given to the State Auditor Joseph Maestas and the current Board of Regents, but were not released until October 16. No reason given for the delay.
The accountant had originally been engaged to conduct the audit by Dr. Shepard in the summer of 2023 because of Shepard was already facing accusations from Santa Fe lawmakers about the University's spending.* Following the resignation of Dr. Shepard and firing/resignation of the Board of Regents in December of 2024, the audit was halted. Then Maestas had WNMU restart it under his auspices.
Back on November 19, 2024, Maestas released a Letter of Concern regarding expenditures which included claims of "lavish spending" by Shepard. (The Regents were never given a chance to explain those expenditures.)
An email obtained through the Inspection of Public Records Act shows the relationship between the auditor's office and SearchlightNM, one of the chief media outlets attacking Dr. Shepard
That night after the Letter of Concern was released, Joshua Bowling of SearchlightNM sent an email to David Pena at the Auditor's office:
"Thanks, Dave. Really appreciate you and Auditor Maestas taking some time tonight."
Three days later on November 21, Searchlight printed an article slamming Shepard.
Another media outlet, the SantaFeNewmexican.com, also printed an article attacking Shepard. This publication had over 10 articles criticizing the former president, but would not print the Jaramillo audit report.
After the Regents' meeting on Oct.17:
Maestas held a separate session to answer reporters' questions. But before that meeting, Maestas had issued a press release still claiming improper expenditures of $360,000 for the period of 2017-2024.
When asked by the Beat why he was still making claims that the audit contradicted, he said, "Look at page 42."
On Page 42, the auditors looked at Travel-related expenditures over an 8-year period. Their findings were "that documentation and approval practices did not align with policy expectations or lacked the details necessary." The report did Not mention any waste, fraud or abuse. This is in stark contrast with what Maestas has been accusing Dr. Shepard of.
When asked by the Beat, "In light of the auditor's report should you apologize to the former Regents and Dr. Shepard?"
Maestas replied, "No."
(Editor's note: Santa Fe lawmakers and administrators (former and current) being sued by Dr. Shepard include George Munoz, Siah Hemphill, Mimi Stewart and Joseph Maestas. Also included is John Wertheim, current vice-president of the WNMU Board of Regents.)
To be continued …
