Aug. 20 -- An Aztec firm hired to provide drilling services for Albuquerque's fiber optic project has dropped claims against city homeowners totaling more than $1.8 million, the New Mexico Department of Justice announced Wednesday.
The state's top attorney alleges that Boreworxx Construction filed liens July 15 against 152 homeowners to gain leverage in a contract dispute with another firm.
Boreworxx officials did not immediately respond Wednesday to phone and email messages seeking comment.
The dispute is the latest hiccup in Albuquerque's effort to expand the city's fiber optic network. The city in the past has issued stop-work orders to firms hired to lay fiber optic cable in response to complaints about damage to yards and properties.
The state Department of Justice began investigating July 17 in response to complaints from homeowners and city officials about liens on homeowners' properties.
"Prompt reporting of this issue by both members of the community and the City of Albuquerque, enabled our office to take action and stop this company from holding homeowners hostage and using them as a bargaining chip in their ongoing contract dispute," Attorney General Raúl Torrez said in a statement.
The agency reached a settlement Aug. 12 with Boreworxx and the firm's owner, Jeffery Dailey, to withdraw the liens.
Boreworxx also agreed to discontinue communications with homeowners and provide the Department of Justice with a list of all individuals who received messages from Boreworxx.
City officials said Wednesday they were aware of the dispute over the liens, which they described as "a contractual dispute between private companies" unrelated to the city's work.
The city's Broadband Office touts fiber optic networks on its website as a faster, more reliable and cost-effective way to deliver internet service.
"High-quality, affordable internet is essential for the success of our city and its residents and businesses," said Catherine Nicolaou, the city's Broadband Program manager.
The city so far has connected 26,000 homes to high-speed fiber connections, Nicolaou said.
The city of Albuquerque has entered into agreements with Ezee Fiber, Gigapower and Vexus Fiber to lay fiber in the city.
Gigapower is a joint venture between AT&T and a fund managed by Global Infrastructure Partners. Gigapower's general contractor, Circet USA, hired Boreworxx to perform horizontal drilling services for the project, according to the agreement.
Boreworxx filed the liens against homeowners in an attempt "to manipulate its contract company into paying for fiber work that allegedly was not completed satisfactorily," the Department of Justice said in the statement.
Boreworxx also sent correspondence to homeowners saying the liens were placed on their homes due to outstanding payments Circet USA owed Boreworxx, the agency said.