Why Villalobos Should Go : His shaky financial past undermines credibility of mayor’s economic team

Los Angeles’ deputy mayor for economic development, Alfred R. Villalobos, is nothing if not a survivor. He has overcome big gambling debts, a personal bankruptcy and even the loss of his home through foreclosure to become one of the top members of Mayor Richard Riordan’s team. But given his checkered business career, one has to wonder: Is Villalobos really the best person Riordan could find to revive this beleaguered city’s business environment? Sadly, no.

A look by Times staff writers Ted Rohrlich and Nancy Rivera Brooks at Villalobos’ past business dealings found that the 49-year-old businessman has accumulated a messy record. Though it does include successful business deals and satisfied clients, it also includes dozens of lawsuits filed both by creditors and former business associates. Most troubling for a man now in a highly visible public office, and who is likely to deal with public funds, Villalobos once failed to repay a $60,000 balance on a loan from the Small Business Administration and $14,000 in student loans.

Times reporters also found that Villalobos has a tendency to omit key details of his past while exaggerating others. His resume does not mention his tenure as president of a financial services company that failed under his leadership. And it states that he attended law school for much longer than he really did. In one of the more revealing comments about Villalobos, a former business associate expressed amazement that Riordan named Villalobos to be deputy mayor for business development. “Did anybody do a background check? . . . I’m not saying he did anything illegal. But from a financial standpoint . . . he was all flash and no cash.”

Clearly, this is no time for the city to put its economic future in the hands of a perhaps well-intentioned but surely miscast appointee. Villalobos is an enthusiastic and loyal Riordan supporter, but the mayor should find someone else for the economic development job. And if Villalobos believes in the mayor’s agenda, he won’t wait to be asked to leave but will honorably step aside.