Roundhouse Roundup: Lawyers Doing Their Jobs

A version of this was published in The Santa Fe New Mexican
January 13, 2011

Albuquerque lawyer Sam Bregman, who is challenging incumbent Javier Gonzales for the chairmanship of the state Democratic Party, has been in the news a lot in recent years.

Bregman, a former Albuquerque City Councilor, has been something of a go-to lawyer for Democrats in trouble. While I haven’t seen any public statements about this from Gonzales or the other candidate, Letitia Montoya, behind the scenes some Democrats are saying some of his controversial clients are baggage for Bregman.

I couldn’t get Bregman on the phone Wednesday. But in a recent video interview with Albuquerque blogger/journalist Peter St. Cyr, Bregman said, “I’m a lawyer doing my job. For someone to be that shortsighted is really silly.”

He’s right. He is a lawyer doing his job, and it’s unfair to judge a lawyer by his clients. All defendants, whether an accused murderer, or, say, a state treasurer accused of seeking bribes, deserve a good defender.

However, Bregman apparently didn’t feel that way when he was running for mayor of Albuquerque in 1997.
At the time, he was a prosecutor with the district attorney’s office. One of his opponents was former Gov. David Cargo, also a lawyer.

In August 1997, according to articles in The Albuquerque Tribune, Bregman said, “Going on four years now, I’ve gone into the courthouse trying to seek justice for victims and their families and trying to put criminals behind bars.

“Dave Cargo has spent that same time walking into the courthouse trying to keep criminals on the street. Dave Cargo has stood up for people who peddle drugs to our children, people who abuse our children, people who assault our police officers.”

To his credit, a couple of days after the controversy broke over his remarks, Bregman walked back a little, telling The Tribune, “Perhaps my comments were not in the appropriate context and perhaps the rhetoric was a little strong. ... I do not for one minute want to imply that defense attorneys do not have a very valuable place in our criminal justice system. I am certainly very supportive of a person’s right to have an attorney.”

Neither Bregman nor Cargo won that race. Jim Baca did.

Among Bregman’s most high-profile clients in recent years:

* Former state Treasurer Robert Vigil was facing multiple federal charges related to a kickback scheme involving state contractors. After two trials, Vigil was convicted of one count of attempted extortion but acquitted by a jury of 23 other extortion and racketeering charges. Vigil served 32 months in federal prison.

* Roberta Vigil, a former West Las Vegas school administrator — and related by marriage to the former treasurer — was convicted on state charges of fraud and conspiracy. She received three years of probation and was ordered to repay $13,856 in bilingual education funds to the school district.

* Marc Correra has not been charged with any crimes, but he was at the center of a state investment scandal. Between 2003 and 2008, Correra — whose father was close to then-Gov. Bill Richardson — shared in nearly $22 million in fees as a third-party placement agent to help money-management firms win investments with the State Investment Council and a state educational pension fund. Bregman represented Correra before the state Gaming Control Board when the broker was part of a team trying to start a race track and casino in Raton.

* Bruce Malott, the former chairman of New Mexico’s Educational Retirement Board, resigned in September over a questionable $350,000 loan from Anthony Correra (Marc Correra’s father). Malott has not been charged with any crime but has been named in civil suits, including those filed by Frank Foy, former cheif investment officer of the ERB.

* Alfred Lovato, a former state police guard of Richardson, was in the car driven by politically-connected lawyer Carlos Fierro when Fierro struck and killed pedestrian William Tenorio in Nov. 2008. Lovato initially was charged with vehicular homicide and leaving the scene of a fatal accident. But Bregman persuaded state District Judge Michael Vigil to drop the charges.

UPDATE 9:15 a.m.: The initial version of this column listed the wrong position for Frank Foy. That has been corrected.

AG Opinion: State Shouldn't Have to Pay Malott For Legal Expenses, PR Firm.

State Attorney General Gary King's office released a long-awaited opinion on a question whether the state should have to reimburse former Education Retirement Board Chairman Bruce Malott for legal expenses and other costs related to lawsuits and federal investigations related to ERB investments.

Malott racked up at least $300,000 in legal fees from private attorneys. He's also been represented by state lawyers in the case. He also hired a public-relations firm. Malott has threatened to sue the state if he doesn't get reimbursed.

The opinion said:

... in light of the other statutes that provide legal representation to state officers and employees, 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….)

Earlier this year, members of the Legislative Finance Committee balked at the pay-out, but they don't have the power to stop the ERB 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 ERB and the State Investment Council.

Update 4:08 pm: ERB executive director Jan Goodwin just told me that Malott never has submitted formally a request for reimbursement. So unless Malott does submit such a request, nothing will happen.


Asked what she thought of the opinion, she would only say, "We're glad to have it."

Correction: An earlier version of this post misidentified the Legislative Finance Committee, calling it mistakenly, the "Legislative Council."

UPDATE 4:56 pm Here's a copy of the AG's opinion.

3 Dec 10-Jan Goodwin-Opinion 10-05

Denish to Donate Malott Money to Charity -- But Not $$ from Mallot's Company

A version of this was published in The Santa Fe New Mexican
September 3, 2010

The day after Bruce Malott, the chairman of New Mexico’s educational pension fund, resigned over a questionable $350,000 loan, Democratic gubernatorial candidate Diane Denish’s campaign announced it was donating to a charity more than $4,000 in campaign contributions from Malott — whose company once kept the books for the Denish campaign.

“In light of today’s revelation, the campaign immediately donated donations from Mr. Malott to a New Mexico nonprofit that supports our early-childhood education professionals,” Denish spokesman Chris Cervini said in an e-mail Thursday. “It was the right thing to do.”

However, records kept by the Institute on Money in State Government show that in addition to Malott’s personal donations, his company, the accounting firm of Meyners & Co., gave Denish $8,750 since 2007.

Malott and his business also have contributed $4,500 to the campaign of Denish’s running mate, Brian Colón.

Asked about the extra thousands from Meyners, Cervini said, “We saw it more of an issue with Mr. Malott than with his company.”

Cervini acknowledged that Malott’s firm served as treasurer of the Denish campaign until this spring.

“The campaign switched treasurers several months ago for a number of considerations, including our concerns about the use (of) state funds for Mr. Malott’s legal defense,” Cervini said in his e-mail. Malott’s firm was listed as campaign treasurer on Denish’s October campaign finance report. But the next report, filed in April, indicated another company was doing the books.

The state paid at least $300,000 in legal bills for a private lawyer Malott hired to represent him in lawsuits over failed investments and a pending federal investigation into public investments. A state-appointed attorney also is defending Malott in the lawsuits. Several legislators have criticized the plan for state money to be used to pay private lawyers in the investment scandals.

Malott’s resignation from the Educational Retirement Board was reported Thursday in a copyrighted story by the Albuquerque Journal. The report said he stepped down after an interview concerning the 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 ERB and the State Investment Council.

Malott, an Albuquerque accountant, told the Journal he borrowed the money in August 2006 to pay federal and state taxes owed because of a tax-shelter dispute with the Internal Revenue Service.

Malott said that at the time of the loan he was unaware that Marc Correra had been receiving fees for helping money-management firms win investments from the pension fund and the SIC, 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. His lawyer, Sam Bregman — who also has represented Malott’s company — has said there was no wrongdoing on Marc Correra’s part.

Among the lawsuits in which Malott is involved is one by former Education Retirement Board director Frank Foy, who claims Malott pressured him into approving investments with the Chicago-based Vanderbilt Financial and related companies.

Denish’s opponent, Susana Martinez, was quick to jump on the connection between Denish and Malott.

“… It is clear that the culture of corruption is deeply rooted in the Richardson/Denish Administration and we are finding more conflicts and wrongdoing every day,” Martinez campaign manager Ryan Cangiolosi said in a news release Thursday. “Denish stood by Gov. Richardson’s side and has strong ties with almost all the individuals making headlines for their crooked deals, which have held New Mexico back. New Mexicans have a right to know who else in the Richardson/Denish Administration and their boards had financial interests in these taxpayer-funded deals.”

State records show Malott’s company was paid more than $10 million by the state for auditing services between the fiscal years of 2001 and 2006, according to records obtained last year by The New Mexican.

Meyners currently has 21 auditing contracts with various state agencies, Antonio Corrales, chief of staff for the state Auditor’s Office, said Thursday. The contracts total more than $2.1 million, Corrales said.

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.

Anthony Correra served as a director of a nonprofit foundation that Richardson formed to do voter registration ahead of the 2004 presidential election. Malott’s company did the books for that foundation as well.

The elder Correra 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.

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.

The Associated Press contributed to this report.