Litigation over investments to be amended, refiled
A Santa Fe district judge has dismissed a civil lawsuit filed by former Educational Retirement Board Chairman Bruce Malott against financial firms and others that did business with the teachers pension fund.
Malott claimed in his lawsuit that he was “duped” into approving pension fund investments by Anthony Correra, a close associate of then-Gov. Bill Richardson, and others.
District Judge T. Glenn Ellington dismissed the case without prejudice – meaning it can be refiled – ruling that Malott’s complaint failed to allege sufficient facts to support his claims.
The ruling is based on a determination that the facts stated, even if true, were insufficient to allow the case to continue.
Ellington set a deadline of July 29 for Malott to file an amended complaint saying he was a victim of a conspiracy that ruined his business.
Malott said an amended complaint will be filed next month “that will more clearly show the fraud and conspiracy that were perpetrated on me and the state of New Mexico by the defendants in this matter.
“The citizens of New Mexico deserve the truth with regard to this chapter in the history of our state and we intend to continue that pursuit,” he said.
Malott, who at one time was campaign treasurer for Richardson and was his personal accountant, sought unspecified personal financial damages for loss of reputation and his business.
Malott was ERB chairman from 2004 until 2010, when he resigned after being asked in a Journal interview about a previously undisclosed loan of $350,000 he received from Anthony Correra.
Malott claims Correra used his relationship with Richardson, who served as governor from 2003 through 2010, and other prominent New Mexicans to advance the conspiracy to direct pension fund investments to companies paying his son, Marc Correra.
Marc Correra shared in more than $22 million in fees paid by financial firms that received investments by the pension fund and the State Investment Council.
The lawsuit alleged that from 2004 until 2009, Anthony Correra ingratiated himself with Malott to gain his trust by inserting himself into Malott’s personal life – visiting Malott’s ill daughter in the hospital and befriending Malott’s mother and his future wife.