As a member of the powerful Los Angeles Fire and Police Pensions board, Sean Harrigan's private financial life intersected repeatedly with the business of his agency, which oversees a $10.7-billion portfolio on behalf of retired public employees.
Long before he was caught up in a national investigation into the way public pensions are managed, Harrigan took a consulting job with a law firm that was applying to get work from his board, records show.
The pension board president also secured consulting work with a well-connected Los Angeles company two months after he voted to invest $20 million in two of its clients. Even his residence was linked at one point to a company with business before his board.
Weeks before he was appointed by Mayor Antonio Villaraigosa, Harrigan changed his voting address from the city of Corona to Los Angeles, renting an apartment from the real estate company CIM Group. Four months later, he voted to invest $30 million in public pension money in one of CIM's urban real estate funds.
Harrigan, 63, resigned his volunteer post on Thursday, becoming the first California official to step down because of the growing inquiry into public pension funds by New York Atty. Gen. Andrew Cuomo and the Securities and Exchange Commission. Last month, the SEC asked Harrigan to identify income he received from pension board consultants and contractors. Board member Elliott Broidy resigned hours after Harrigan.
In an interview, Harrigan insisted that he has done nothing wrong. He said he behaved ethically throughout his 3 1/2 -year tenure and recused himself from voting when conflicts arose. "My responsibility first and foremost has been to the beneficiaries of the fire and police pension system," he said.
Still, one of Harrigan's potential conflicts was considered so problematic that Los Angeles City Atty. Rocky Delgadillo instructed the pension board to undo a decision that favored one of Harrigan's clients, the law firm of Grant & Eisenhofer.
Harrigan, a longtime executive with the United Food and Commercial Workers, became a consultant to the law firm on May 1, 2007, agreeing to introduce members to labor unions across the country, according to Jay W. Eisenhofer, the firm's managing partner.
