One of Los Angeles Mayor Antonio Villaraigosa's pension board appointees stepped down Tuesday after The Times inquired about his involvement in a campaign fundraiser for City Councilman and city attorney candidate Jack Weiss -- an activity that violates the city's ethics law.
Kelly Candaele, who had been on the Los Angeles City Employees' Retirement System Board of Directors since 2005, was one of six hosts of the event Monday in Beverly Hills, according to the invitation.
The City Council voted in 2004 to bar city commissioners and board appointees from engaging in campaign fundraising activities, as a response to the investigations into appointees of then-Mayor James K. Hahn. The law prohibited those officials from calling contributors or appearing on fundraising invitations.
Roughly four hours after The Times asked Villaraigosa's office about the event, Candaele submitted his resignation letter, saying he had put his name on the invitation by mistake. "Although I did not raise or contribute any political funds, this is inconsistent with the ethics pledge I signed when appointed to serve," he wrote.
Two other hosts of Weiss' fundraiser hold positions with Wetherly Capital, a company that has promoted investing opportunities to two city pension boards, including the one on which Candaele served. Wetherly, known in industry circles as a "placement agent," has become a subject of interest in recent weeks for investigators looking into allegations of kickbacks at the New York state pension fund.
Weiss, who is running to replace City Atty. Rocky Delgadillo in the May 19 election, will give back roughly $20,000 raised from Monday's event, said his campaign consultant Ace Smith. "Jack Weiss believes that his campaign must be held to the highest standards," Smith said in a statement.
Weiss' opponent, Carmen Trutanich, said the councilman should have known better and took action only after getting caught. "He got caught with his hand in the cookie jar," he said.
Top advisors to the mayor, upon learning of the violation, requested that Candaele submit his resignation, a Villaraigosa aide said. In a statement, the mayor described Candaele as an upstanding leader who made "an honest mistake."
