Regional
12:58 pm
Thu September 2, 2010

ERB Pension Chief Resigns After Loan Disclosure

New Mexico – 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 the fund's investments.

Bruce Malott's resignation was reported Thursday by the Albuquerque Journal. The newspaper says he stepped down after an interview concerning the loan.

Malott borrowed from Anthony Correra, a contributor to Gov. Bill Richardson, in August 2006. Malott, told the newspaper he didn't know that Correra's son, Marc Correra, had been receiving fees paid by companies that landed investment agreements with the pension fund and state Investment Council.

A spokesman for Richardson says the governor wasn't aware of the loan and has accepted Malott's resignation.

Malott didn't immediately return telephone calls seeking comment by The Associated Press.

Copyright 2010 The Associated Press.