Riordan Gives Villalobos a Vote of Confidence : City Hall: The mayor says his deputy’s career ‘makes him the kind of person who can speak with other entrepreneurs.’ Recent disclosures have told about financial problems in the past.

Los Angeles Mayor Richard Riordan said Monday that he is untroubled by disclosures that his deputy mayor for economic development, Alfred R. Villalobos, has had a troubled career in private business.

Riordan said Villalobos’ career--marked by a personal bankruptcy and the complaints of people who say he took advantage of them financially--makes him well-suited to talk knowledgeably to other business people as a representative of the mayor’s office.

“As a minority entrepreneur, Al Villalobos, like other entrepreneurs, has had his ups and downs in business,” the mayor said in a statement. “That makes him the kind of person who can speak with other entrepreneurs and corporate leaders about their business problems and successes.

“I have full confidence in Al’s ability to fulfill his responsibilities as deputy mayor for economic development,” Riordan said. “He has pulled together a great team and they are working to attract and retain businesses in Los Angeles and to help make city government more responsive to business.”

Riordan’s press secretary, Annette Castro, said the mayor “knew about some but not all” of the 18 lawsuits by creditors and people alleging fraud or other business misconduct by Villalobos outlined in a Times article Sunday about Villalobos’ business career. The story also reported that Villalobos filed for personal bankruptcy in 1982, writing off $350,000 in debts.

“I believe he was not aware of the bankruptcy,” Castro said. Nonetheless, she said, Riordan “retains full confidence” in Villalobos.

William Wardlaw--a former business partner of Riordan’s who chaired the mayor’s election campaign, headed his transition team and remains an important political adviser--said Monday that he regarded the bankruptcy and lawsuits disclosed by The Times as “old news.”

“They’re old, very old,” he said.

Wardlaw declined to say what information Villalobos had disclosed in the selection process. Several people recommended Villalobos to the mayor, he added, but the key boost came from Councilman Richard Alatorre.

“Richard Alatorre is very, very important to the mayor of Los Angeles, and his recommendation carries a lot of weight,” Wardlaw said. “We have great respect for him.”