NM AG: Excess Local Tax Revenues Improperly Spent to Support Spaceport America Operations

The Virgin Galactic Gateway to Space terminal hangar facility (center), Spaceport Operations Center (Left) and “Spaceway” (Runway) at Spaceport America. (Credit: Bill Gutman/Spaceport America)

by Douglas Messier
Managing Editor

Excess local tax revenues collected to support Spaceport America have been improperly spent on the facility’s operational costs, the New Mexico Attorney General’s Office has concluded.

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Video of My Appearance on the Tipping Point New Mexico Podcast

Posted by Douglas Messier on Monday, December 21, 2020

On Monday, I joined Rio Grande Foundation President Paul Gessing for an episode of the Tipping Point New Mexico podcast. We talked about the latest developments involving Virgin Galactic and Spaceport America. Topics include:

  • aborted SpaceShipTwo flight test of Dec. 12
  • reasons for 22-month delay in powered flights
  • new Virgin Galactic CEO Michael Colglazier’s extravagant vision for the space tourism company
  • why Virgin Galactic hasn’t been able to deliver on promises made to New Mexico taxpayers
  • shakeup in the management at the New Mexico Spaceport Authority, and
  • recent audit that recommended former Spaceport America Executive Director Dan Hicks and ex-CFO Zach DeGregorio be invested for possible criminal charges.

Enjoy!

Spaceport America Board Approves Spending $20 Million for New Capital Projects

The Virgin Galactic Gateway to Space terminal hangar facility (center), Spaceport Operations Center (Left) and “Spaceway” (Runway) at Spaceport America. (Credit: Bill Gutman/Spaceport America)

by Douglas Messier
Managing Editor

Fresh off a stinging report saying that it failed to properly oversee a state-owned facility rife with fraud, waste and abuse, the New Mexico Spaceport Authority (NMSA) Board of Directors approved spending up to $20 million on capital improvements to Spaceport America.

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Report Recommends Former Spaceport America Executives be Investigated for Possible Criminal Charges

Sunset at the “Virgin Galactic Gateway to Space” terminal hangar facility at Spaceport America. (Credit: Bill Gutman/Spaceport America)
  • Outside investigation concluded former Executive Director Dan Hicks ignored spending regulations, submitted falsified travel documents, and wasted hundreds of thousands of dollars on unnecessary travel and unrealistic projects
  • Hicks portrayed by staff as an incompetent manager who bullied employees
  • Ex-CFO Zach DeGregorio facilitated Hicks’ violations by improperly approving travel and ignoring rules and statutes
  • Former New Mexico Spaceport Authority Board Chairman Rick Holdridge accused of allowing violations to continue

by Douglas Messier
Managing Editor

A highly critical investigation of Spaceport America has determined the New Mexico state government should consider formal criminal and/or administrative charges against former Executive Director Dan Hicks and former Chief Financial Officer (CFO) Zach DeGregorio for their mishandling of the spaceport’s finances.

“As detailed above, there is evidence to conclude that Dan Hicks violated criminal and administrative statutes, as well as the State of New Mexico Governmental Compliance Act, and Governor Lujan Grisham’s Code of Conduct, during his tenure as Director of the Spaceport,” the report said.

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