L.A. bash raises ethical questions

Aguallo is currently under investigation by the city's Ethics Commission over his decision to take a job in April with Cardinal Americas, a firm that had received help from his agency only two months earlier. On May 6, only days after he retired, Aguallo sent e-mails to LACERS trying to influence the amount of fees the city would pay to Cardinal Americas, a move that may have violated the city's "revolving door" ban on lobbying by recently departed city workers.

Aguallo attorney Fred Woocher defended his client's retirement party, saying he "wasn't very involved" in the event. Woocher said Aguallo planned to retire weeks before the party but stayed longer as officials searched for his replacement.

"I don't get what the big problem is," he added. "It happens all the time. If you want to raise money for a charity, you pick an honoree and then you use that person to hit up anyone they know that has money."

At least one city worker sounded ambivalent about being assigned to attend and work the party, lamenting in an e-mail to a colleague that she would likely have to stay until 1 a.m. -- 90 minutes after it was scheduled to end. "I think they're having dancing and a dance floor (god knows why)," wrote pension system employee Debra Fleming.

LACERS manages a $10-billion portfolio on behalf of 45,000 current and former city workers.

Aguallo's retirement bash raised money for a "Robert Aguallo Jr." scholarship to be administered by the Robert Toigo Foundation, a nonprofit that encourages minority students to seek jobs in finance. Toigo said in a statement that it was honored to receive the money from Aguallo, who is vice president of the group's board.

Emceeing the party were pension board president Eric Holoman, an appointee of Mayor Antonio Villaraigosa, and pension board vice president Shelley Smith, a lawyer in the office of City Atty. Rocky Delgadillo who also serves on Toigo's board. Financial professionals whose companies had appeared before Holoman and Smith were asked by party organizers to pay $5,000 for a table of three or $10,000 for a table of five -- sponsorships that gave them entry to a VIP pre-dinner reception.

City Hall retirement parties are typically staged on a considerably smaller scale, with invitations posted on city bulletin boards and attendees paying between $30 and $60 to cover a meal and a gift. Aguallo's event, by contrast, took in at least $150,000, according to documents and interviews, two-thirds of which went toward the scholarships. The rest, according to one e-mail, covered expenses.