Is L.A.'s former muni pension fund chairman breaking the law?

The day after he resigned as head of L.A.'s biggest municipal pension fund in  May, Robert Aguallo Jr.  was already e-mailing former colleagues at the Los Angeles City Employees' Retirement System, doing business for a private-sector firm.

What happened to the one-year cooling-off period required by Our Town's ethic's laws? Excellent question. The Ethics Commission is investigating, and our own David Zahniser helps shed some light on the complex tale:

Under city ethics laws, high-level officials who leave for the private sector must observe a one-year cooling-off period, during which they are barred from directly attempting to "influence" a decision at their former agency.

The ethics probe comes as City Council members have voiced increasing concerns about a "revolving door" at other city agencies, such as the Department of Water and Power. Councilman Greig Smith, who has monitored pension issues while on the council's Budget and Finance Committee, said he was dismayed to see Aguallo lobbying the pension system within days of leaving it.

"It's a real abuse of trust for me. It stinks," said Smith, after reviewing the e-mails. "Whether there's a violation of the law, the city attorney will have to decide."

Can city employees who reported to Aguallo just weeks ago really be free of pressure to help him out in his new private sector role? Another good question, and Zahniser has some answers in his full story.

--Veronique de Turenne

Photo: Bob Carey / Los Angeles Times