Fired CSUN Official Faces New Accusation

A former Cal State Northridge official, under fire for losing campus money in a high-risk investment, was accused Thursday by her former boss of misrepresenting the venture to campus student groups by promising they would reap high returns on the deal.

The latest charges against Karen Hoefel, 47, were leveled by Art Elbert, CSUN vice-president of administration and finance, at a Times Valley Edition editorial board meeting with campus officials.

Earlier this week, CSUN officials blamed Hoefel for $2.27 million lost when the high-risk, mortgage-backed securities she bought were sold in April.

Elbert eliminated her position while she was on a temporary stint in the CSU chancellor’s office in Long Beach and fired her on Monday, citing unspecified “unprofessional conduct,” her attorney told The Times.

The lawyer, Robert L. Risely, said Thursday he was skeptical of the latest salvo against Hoefel. “I doubt very seriously she promised she could get X%,” he said.

Because of Hoefel’s alleged verbal promise that the investments would yield a high return, university officials decided to return the groups’ money with interest. The loss will be absorbed by university reserve funds, according to Elbert.

Although all agree the investments were legal at the time they were launched in fiscal year 1990-91, CSUN President Blenda Wilson said Hoefel used “poor judgment” by putting the money, some of it from CSUN’s Associated Students and University Student Union, at risk.

Elbert repeated that characterization Thursday.

“You shouldn’t invest the public’s money in that kind of thing,” Elbert said.

Hoefel said earlier this week that her superiors--including Elbert--were apprised of the investment at all times and there would not have been a loss if the securities hadn’t been dumped prematurely.

Risely said Hoefel, a 26-year CSUN employee, will fight the dismissal, filing a wrongful termination lawsuit if needed.

Wilson cut off further talk of Hoefel’s dismissal, citing the confidentiality of personnel matters.