Democrat Richard Cordray said his office is looking into whether Dann and Gutierrez can be held personally liable for some of their behavior as state officials in 2007 and early 2008. Gutierrez was fired in May 2008, about two weeks before Dann resigned under pressure.

The office also is looking into whether part of its legal settlement with two ex-employees could be paid by a bond that Dann submitted upon taking office or other bond funds that generally cover state employees, Cordray said.

Cordray made his comments as a panel of legislators approved the $495,000 in payments to Cindy Stankoski and Vanessa Stout, who were regularly subjected to crude sexual comments and advances from their boss, Gutierrez, in late 2007 and early 2008.

Dann had hired Gutierrez, a Youngstown-area neighbor and close friend, as his general-services director.

The state already had issued checks to Stankoski, Stout and their lawyers before the payments went to the state Controlling Board yesterday. Some members of that panel, which is supposed to provide spending oversight, expressed consternation that the checks already had been cut before they voted.

Three Controlling Board members -- Sen. John A. Carey Jr., R-Wellston; Rep. Jay Hottinger, R-Newark; and Sen. Mark Wagoner, R-Toledo -- voted against the payments.

Wagoner asked Cordray whether the state could pursue restitution from Dann and Gutierrez.

"We are looking into that," said Cordray, who is serving the second half of fellow Democrat Dann's four-year term. "We have not ascertained whether there is a chance to recover money from other sources."

It's not clear whether Dann or Gutierrez would have much money to contribute. Dann, who was alleged to have used his campaign funds to cover personal expenses, has been practicing law on his own since resigning. Gutierrez, who had a string of bankruptcies, went back to managing a small Youngstown construction firm.

Cordray noted that it would cost the state to sue them for payment.

Wagoner said the state should at least explore the issue.

"It's clear that Marc Dann and Anthony Gutierrez, when they were performing these alleged acts, were acting outside the scopes of their duties as attorney general and an employee of the office," he said in an interview. "At the very least, Ohio taxpayers are owed the due diligence of looking into whether restitution is possible."

jnash@dispatch.com