House Democratic Leader Ward Armstrong and House Democratic Caucus Chair Ken Plum today sent a letter to Governor Bob McDonnell, asking him to remove Fred Malek as Chairman of the Commission on Government Reform and Restructuring. Malek has come under fire not only for his “Jew-counting” activities in the Nixon administration but also for the fines levied against his company by the SEC in 2004. In a radio interview this week, the governor said he was unaware of Malek’s background, an admission some find difficult to believe.
The letter asks McDonnell to remove Malek and offers several names for his replacement.
Former U.S. Senator John Warner, Christopher Newport University President Paul Trible, or Commission member John “Dubby” Wynne are all well-qualified alternatives.
The entire letter is below the fold.
Commonwealth of Virginia
House of Delegates
RichmondMay 27, 2010
The Honorable Robert F. McDonnell
Patrick Henry Building, Third Floor
1111 E. Broad Street
Richmond, VA 23219Governor McDonnell:
We would first like to commend you on your creation of the Commission on Government Reform and Restructuring. Streamlining government and finding cost-saving efficiencies is a laudable goal regardless of one’s partisan leanings. In fact, our Caucus has put our words into action on this issue by supporting House Bill 1053 in the 2010 General Assembly session, which would have saved the Commonwealth millions of dollars.
However, we are increasingly concerned that the important issue of government reform is being overshadowed by questions about the past behavior of the Chairman of the Commission, Fred Malek. We are especially concerned with his actions regarding Connecticut state pension investments and the six-figure penalty paid by Mr. Malek and his company to the Securities and Exchange Commission in 2004. In its findings, the SEC expressed concern about the undisclosed agreements made by Malek’s company with a political associate of the Connecticut State Treasurer. It is these kinds of incidents that create the need for reform and more transparency and sunlight in our government. True reform should not be led by someone with any questions regarding his background.
Therefore, it is our strong suggestion that you replace Mr. Malek with a chairman whose credentials on government reform are unimpeachable. Former U.S. Senator John Warner, Christopher Newport University President Paul Trible, or Commission member John “Dubby” Wynne are all well-qualified alternatives. It is clear that the important work of the commission would be distracted by questions about past behavior by its Chairman, and that would be a disservice to the Commonwealth.
Sincerely,
Ward L. Armstrong, House Minority Leader
Kenneth R. Plum, House Democratic Caucus Chair
VIVIAN J. PAIGE | All Politics is Local 
“..a political associate of the Connecticut State Treasurer…” How clever. That “political associate” was none other than William A. DiBella, the former Democratic State Senate Majority Leader in Connecticut. But we wouldn’t want to mention that in the letter, would we? DiBella and former Republican State Treasurer Paul Sylvester were the ones who committed the fraud against the state pension and trust fund after quite legitimately depositing pension funds with Malek’s equity company for investment purposes. Malek wasn’t charged by the SEC with fraud — only with “negligence” under the Investment Advisors Act of 1940. He neglected to keep tabs on what these two scammers were really up to. This letter is just another partisan hatchet job. Malek’s appointment to the reform commission was defended and applauded by numerous senior leaders of the Jewish community and even by Diane Feinstein.