Orange County\u2019s investment division staff and functions will be moved from the elected treasurer-tax collector\u2019s office to the county CEO\u2019s office, the OC Board of Supervisors decided Tuesday, April 14.<\/p>\n
The board\u2019s unanimous approval of the reorganization is part of the transfer of oversight of the county\u2019s $17 billion investment pool from Treasurer-Tax Collector Shari Freidenrich to interim CEO Michelle Aguirre, completing a move started more than a year ago. As treasurer-tax collector, Freidenrich, who was elected in 2010, is the county\u2019s banker, responsible for billing, collecting and safeguarding taxpayer dollars.<\/p>\n
In December 2024, the board stripped Freidenrich\u2019s investment duties<\/a> and then, in February 2025, delegated control of the investment fund to the chief financial officer, Kimberly Engelby.<\/p>\n The supervisors\u2019 decision to change the county\u2019s investment policy drew sharp criticism at the time from local and state officials, including Assemblymember Avelino Valencia, D-Anaheim, who raised concerns<\/a> about the lack of transparency and explanation in the board\u2019s action.<\/p>\n At Tuesday\u2019s meeting, Freidenrich argued the board has \u201cdismantled many protections and oversight measures\u201d implemented after 1994, when then-treasurer Robert Citron sent the county into bankruptcy<\/a> with risky investments. Freidenrich said the board has made investment decisions, such as purchasing longer-term callable bonds, that \u201cincreased the risk\u201d to public funds.<\/p>\n \u201cThe board continues to regularly interfere in my ability to carry out my legal, statuary and fiduciary duties,\u201d Freidenrich said. \u201cThe board\u2019s actions have created a clear and present risk to all treasurer-tax collector operations.\u201d<\/p>\n Third District Supervisor Don Wagner said changes to the county\u2019s investment policy are irrelevant to Tuesday\u2019s agenda item, which was about relocating staff from the treasurer\u2019s office to the CEO\u2019s office.<\/p>\n \u201cAll we\u2019re trying to do here \u2014 and it should be applauded by the TTC if she\u2019s really concerned about oversight \u2014 is bring some of that oversight staff in-house where they can do their job that much better,\u201d Wagner said.<\/p>\n At the time the board moved to change investment control, there were complaints from former employees who alleged Freidenrich created a hostile work environment in the department.<\/p>\n Wager said Tuesday that the difference from 1994 is that this time the board took action when concerns were raised about management.<\/p>\n According to a 2022 independent investigation, Freidenrich threw office keys at one employee, which violated workplace violence policies, and threateningly pointed her finger at another\u2019s face. County officials also said Freidenrich\u2019s management of the treasurer\u2019s office<\/a> led to delays in issuing refunds to schools, filing tax liens and cashing property tax checks, which resulted in incorrect late fees and penalties for taxpayers.<\/p>\n Former administrators of Freidenrich\u2019s office have said that her investments were too conservative and failed to generate adequate returns.<\/p>\n Fifth District Supervisor Katrina Foley disputed Freidenrich\u2019s claim that the county investments have lacked proper oversight.<\/p>\n \u201cWe have not voted to loosen any restrictions on our investment policy,\u201d Foley said.<\/p>\n Engelby told the board on Tuesday that the county made a \u201cspecial investment\u201d for about $500 million, which matured and was invested back into the portfolio. As a result, she said, the county now has more funds to invest.<\/p>\n \u201cOver the past, we\u2019ve only dealt with mutual funds and treasuries,\u201d she said. \u201cNow we have diversified comparable to surrounding counties.\u201d<\/p>\n