A former New Mexico pension fund official on Tuesday sued financial firms, an ex-state investment officer and dozens of others for damages because of an alleged pay-to-play scheme over pension program investments.

The lawsuit by Bruce Malott, former chairman of the state Educational Retirement Board, is the latest in a series of allegations that politically influenced investments generated large fees for supporters and friends of former Democratic Gov. Bill Richardson.

Many of the same defendants have been sued in a whistle-blower lawsuit by the pension fund's former chief investment officer. And a state government agency, the State Investment Council, brought a lawsuit earlier this year claiming its former top manager, a financial advisory firm and others improperly steered New Mexico investments to Richardson supporters.

Richardson, who served as governor from 2003 through 2010, has not been named as a defendant in the investment lawsuits, including the one brought by Malott.

Malott said he brought the lawsuit "to clear my good name ... and discourage this kind of fraud in the future."

Federal investigators have been looking at state investment dealings, and Malott said he has cooperated with them.

"Like the citizens of New Mexico, I was victimized by these people. With this lawsuit, I want to hold them accountable," Malott said in a statement.

Controversy generated by a federal investigation into state investment deals, including some by the pension fund, caused his Albuquerque accounting firm to break apart and be sold, according to the lawsuit. The firm had 70 employees, but Malott now operates his own one-person firm.

Among the defendants is former state investment officer Gary Bland; Anthony Correra, a friend and political supporter of Richardson; and Marc Correra, his son. The younger Correra shared in nearly $22 million in fees as a third-party placement agent for deals involving the educational pension fund and the Investment Council, according to state records.

Bland dismissed Malott's lawsuit, saying the allegations against him were groundless.

"Everyone is trying to make a buck. He's just piling on," Bland said.

Other defendants are Aldus Equity Partners and the company's so-founder, Saul Meyer, and Deutsche Bank AG, which owned a controlling interest in Aldus. The now-defunct firm served as an adviser to the pension fund and the Investment Council. It was fired in 2009 after being implicated in a New York state pension scandal.

Meyer has pleaded guilty to securities fraud in the New York case. In his plea statement to a New York court, he said he recommended investments in New Mexico because of political pressures.

No charges have been announced by federal prosecutors in New Mexico as part of their investigation.

The lawsuit said Deutsche Bank learned of Meyer's wrongdoing in 2006 during its acquisition negotiations with Aldus. Other Aldus partners wanted to oust Meyer, but the bank insisted he stay in the firm, according to the lawsuit.

"Defendant Deutsche Bank knowingly, intentionally and fraudulently brought Defendant Meyer back to perpetuate the defendants' criminal conduct, so that ... Deutsche Bank could profit by getting in on it," the lawsuit said.

Deutsche Bank spokeswoman Mayura Hooper said the bank will vigorously defend itself against the suit, which she said "is without merit."

Bland resigned in October 2009 amid the federal investigation into state investment deals. He was appointed by Richardson in 2003, and Anthony Correra served on a committee that recommended Bland for the job as state investment officer.

The lawsuit described the elder Correra as the "consummate con artist." Correra is a former Wall Street stockbroker who lost his securities license because of insider trading allegations. His lawyer didn't immediately respond to a request for comment.

Malott resigned from the pension fund governing board last year after it was disclosed he borrowed $350,000 from the elder Correra. The loan has been repaid with interest, according to Malott.

The lawsuit said the Correras kept Malott "in the dark about the true facts; namely, that defendant Correra Jr. was playing on his father's relationships and influences to garner multimillion-dollar unlawful payoffs in connection with public investments."

A lawyer for the younger Correra did not immediately respond to an email seeking comment but in the past has said there was no wrongdoing by his client in collecting fees as a third-party placement agent.



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