SANTA FE — The chairman of New Mexico's educational pension fund has resigned after it was disclosed he borrowed $350,000 from a man whose son shared in millions of dollars in finder's fees from investments by the fund and another state agency.

Bruce Malott's resignation from the Educational Retirement Board was reported Thursday by the Albuquerque Journal. The newspaper said he stepped down after an interview concerning the loan and after informing Gov. Bill Richardson of the matter.

Malott, an Albuquerque accountant, borrowed the money in August 2006 from Anthony Correra, a political supporter of Richardson, to pay federal and state taxes owed because of a tax shelter dispute with the Internal Revenue Service.

Malott said he has been making monthly payments on the five-year loan with interest.

Malott told the newspaper that at the time of the loan, he was unaware that Correra's son, Marc Correra, had been receiving fees for helping money management firms win investments from the pension fund and the State Investment Council, which oversees state endowment funds.

Marc Correra shared in nearly $22 million in fees as a third-party placement agent, according to records of the state investment agencies, and his lawyer has said there was no wrongdoing.

Gilbert Gallegos, a spokesman for Richardson, said Thursday that "the governor was not aware of the loan and he has accepted Mr. Malott's resignation."

Malott was initially appointed to the pension fund's governing board by former Gov. Gary Johnson, a Republican, and he was reappointed by Richardson, a Democrat. Malott and his accounting firm had served as treasurer of Richardson campaign committees.

Malott submitted a terse resignation letter to the governor, saying he was stepping down immediately and he enjoyed being a board member for the past 11 years and appreciated the opportunity to have served during Richardson's administration.

Malott did not immediately return a telephone call from The Associated Press seeking comment. He told the newspaper he resigned because he was weary of the attention and controversy generated by a federal investigation into state investment deals.

Anthony Correra served as a director of a nonprofit foundation that Richardson formed to do voter registration ahead of the 2004 presidential election.

He also is a close friend of former state investment officer Gary Bland, who was appointed by Richardson but resigned last year amid a federal grand jury and Securities and Exchange Commission investigation into state investments.

The elder Correra served on a committee that recommended Bland for the investment officer position after Richardson was elected in 2002. Anthony Correra and his investment management firm contributed $27,800 to Richardson's 2002 campaign for governor.



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