O.C. supervisors strip treasurer of the right to control the county's $6-billion portfolio
The Orange County Board of Supervisors voted unanimously Tuesday to strip the treasurer of his investment powers over the county's more than $6-billion investment pool.
The vote comes two weeks after Treasurer Chriss Street was ordered to pay $7 million to a bankruptcy trust he once oversaw for breach of fiduciary responsibilities by mismanaging the trust and acting in his own interest and not that of the beneficiaries.
The investment authority will transfer to the county's chief financial officer, Robert Franz, by the end of the month.
"It's a sad day," Supervisor Bill Campbell said before the vote. He added that he didn't know of any problems Street has had as the treasurer and said his vote was motivated by the "public trust."
"This is something we have to do to protect the public's interest," said Chairwoman Janet Nguyen.
In a memo sent to Nguyen on Friday, Street requested that the investment duties be temporarily taken away while he weighs his legal options. He also announced that he will not seek re-election in June. Street dismissed calls for his resignation and said he will serve out his term, which ends in January when his replacement will be sworn in.
-- Raja Abdulrahim in Santa Ana