One of the best manuscripts that I have ever read and had to reject for fear of the lawsuits it would spur was a book written by a good bishop who exposed Malachi Martin's deceptions from first hand knowledge. Something of this account appeared yesterday and makes reference to the "accusation" that actually was leveled by the husband of the woman that then Jesuit Father Martin was accused of being involved with...the bishop who was not a Jesuit but like Martin was priest in Rome at the time made a very convincing case for the reality of the accusation.
Now as to whether Martin was ever laicized, I do not know and if he didn't want to be, he probably wasn't and what the Jesuit is claiming is no doubt the truth but I don't think this exonerates him from the other charges.
Personnally, I always enjoyed his views but at the same time thought he was a little crazy, but then I think that about a lot of people.
From High Ranking Jesuit Confirms Malachi Martin’s Status as Life Long Priest by William H. Kennedy:
"In a stunning reversal of past policy Father Vincent O’Keefe SJ, former Vicar General of the Society of Jesus and a past President of Fordham University, affirmed that Malachi Martin was in fact granted a dispensation from all his vows in the Jesuit order except for chastity. This dispels decades of rumors that Father Martin was defrocked for having had an affair with the wife of a famous journalist. This was the false lie spread by past Jesuits to discredit Father Martin. Martin requested and received a special dispensation by Pope Paul VI to remain a Catholic priest and say Mass in private.
Ever since Father Martin’s scathing review of his former order The Jesuits: The Society of Jesus and the Betrayal of the Roman Catholic Church (1988) rumors were spread by members of this order claiming Martin was defrocked and expelled from the Church of Rome. Martin denied this charge until his death in 1999. Father Mitchell Pacwa – chief spokesman at the Catholic run EWTN would regularly hang up on callers who inquired about Martin on his live call in show. "