Former Educational Retirement Board Chairman Bruce Malott wants the state to reimburse him for hundreds of thousands of dollars in legal fees and public-relations expenses incurred over whistle-blower lawsuits and federal investigations. But the Attorney General's Office said Monday that the state isn't obligated to do so.

In a long-awaited legal opinion, Attorney General Gary King's office said the state isn't obligated to pay for Malott's private attorney fees because the state already is providing him with a state lawyer.

In light of the other statutes that provide legal representation to state officers and employees, the opinion said, "We do not believe it requires the state to reimburse Mr. Malott and other ERB members for expenses resulting from privately retained counsel, particularly when an attorney has been made available at state expense through (the state Risk Management Division)."

Malott has said he's racked up at least $300,000 in legal fees from private lawyers. He has threatened to sue the state if he doesn't get reimbursed. Malott couldn't be reached for comment Monday. An assistant in his Albuquerque accounting office said Malott was traveling.

Malott has repeatedly denied wrongdoing. He has not been charged with any crime.

Malott also hired the public-relations firm owned by former Republican gubernatorial contender Doug Turner. The firm assisted Malott's private attorney, Jack Brant, in writing an opinion piece that was published in The Albuquerque Journal in May. The piece argued that reimbursing Malott for his legal fees was justified.

Deputy Attorney General Elizabeth Glenn wrote in Monday's opinion, "We cannot conclude that the cost to Mr. Malott of hiring a public relations firm is appropriate for reimbursement. ... Mr. Malott did not sustain the expense of hiring a public relations firm because of his decisions as an ERB member."

Educational Retirement Board Executive Director Jan Goodwin said Monday that Malott never has formally submitted a request for reimbursement, so unless Malott does submit such a request, nothing will happen.

Asked what she thought of the opinion, Goodwin would only say, "We're glad to have it." Goodwin, along with then-Department of Finance and Administration Secretary Katherine Miller, had requested the opinion early this year.

Earlier this year, members of the Legislative Finance Committee blasted the proposed payout. But the committee doesn't have the power to stop the Educational Retirement Board from setting aside money in its budget for such reimbursements.

Malott resigned from the board in September following the revelation that he'd taken a $350,000 loan from Anthony Correra, a friend and financial backer of Gov. Bill Richardson. Correra's son, Marc Correra, shared in millions of dollars in finder's fees from investments by the Educational Retirement Board and the State Investment Council.

Malott is a defendant in two lawsuits filed by former Educational Retirement Board director Frank Foy, who claims the board made some bad investments to benefit political allies of Gov. Bill Richardson. He's also named in two class-action suits by people whose pensions are handled by the board.

He's also involved in investigations by a federal grand jury and the federal Securities Exchange Commission concerning the use of third-party marketers — such as Marc Correra. "We understand that Mr. Malott has been or may be subpoenaed by or asked to provide information to the grand jury and SEC," Glenn wrote. State Risk Management made a lawyer available to Malott for the Securities Exchange Commission investigation, but not for the grand jury investigation, Glenn noted.

Contact Steve Terrell at 986-3037 or sterrell@sfnewmexican.com. Read his political blog at roundhouseroundup.com.