Secretary of State Bill Jones, who last summer called for investigations of possible conflicts of interest among Gov. Gray Davis' energy advisors, said he was outraged to learn that Budhraja was still taking money from Edison while advising state electricity buyers.
"How in the world in the last 18 months," Jones said, "can he possibly make the case that he's been working for the state and not come in contact or had a conflict with the second-largest energy company in California?"
Jones ... said he hoped that the Fair Political Practices Commission, the Securities Exchange Commission and the state attorney general's office would step up their probes of Budhraja and others hired by Davis, a Democrat, during the electricity crisis.
"It just shows you the arrogance of power in this administration," Jones said. "They've ignored the ethics of this."
...
In January 2001, the Davis administration gave Electric Power Group a $6.2-million contract to help the state Department of Water Resources take over the power-buying role of utilities ....
SAN FRANCISCO --- Secretary of State Bill Jones today called on the Securities and Exchange Commission (SEC) to investigate Davis Administration energy consultants for possible insider stock trading, a violation of the Securities Exchange Act of 1934. He also called for the Governor to order consultants who have not filed their Statement of Economic Interests (SEI) to do so immediately as is required by California law.
"The SEC ought to open a comprehensive investigation as quickly as possible to determine the extent of a grave problem that apparently exists in the Governor's office and the extent of any improper trading of securities," said Jones. "The SEC publicly declares that it treats the detection and prosecution of insider trading violations as one of its enforcement priorities. I am in complete support of the SEC which believes, as I do, that insider trading undermines confidence in the fairness and integrity of the securities markets."
In a letter to Acting SEC Chairman Laura Simone Unger, Jones stressed the enormity of the apparent violations and provided evidence discovered in the recently-obtained SEIs.
"Vikram Budhraja, who began work for California on January 18, 2001, at a cost to the taxpayers of $6.2 million, bought and sold stock in Edison International and Dynegy before and during his state employment for a significant profit," wrote Jones. "In fact, one purchase occurred the same day that Governor Davis declared a State of Emergency, January 17, 2001, when he ordered the Department of Water Resources to begin buying power on behalf of Edison and PG&E. When Mr. Budhraja sold his Edison and Dynegy stock on January 29, 2001, he pocketed a significant profit (in the neighborhood of nearly 50 percent in one stock's value) since his initial purchases on January 11, 2001."
Based on this compelling evidence, Jones called for an investigation to determine whether Budharaja is guilty of insider stock trading and to ascertain if any other Davis administration energy consultants are in violation of SEC regulations.
"I am deeply concerned that the information we presented to the SEC today is just the tip of the iceberg," said Jones. "The Governor's office has inexplicably exempted approximately half of the energy consultants, including those in the Governor's inner circle, from filing the required Statements of Economic Interests which would help the public identify if additional conflicts exist."
"Californians, including legislators, consumer groups and numerous media outlets, are calling for the state to conduct a thorough and complete investigation," said Jones. "Regrettably, there is ample evidence uncovered that now requires the addition of a federal SEC investigation," concluded Jones.
A copy of Secretary Jones' prepared remarks is attached. [in .pdf]
It is the LA Clymes, mouthpiece for Grayout. That this was the best they could do says a lot...