| Business

Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Ex-CalPERS CEO, board member charged with fraud

Email Newsletters

Sign up for one of our email newsletters.

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

By The Associated Press
Tuesday, March 19, 2013, 12:01 a.m.

Federal officials have charged the former head of the nation's largest pension fund and one of his business associates in an influence peddling and bribery case.

A federal grand jury on Monday indicted Fred Buenrostro, the former CEO of the California Public Employees' Retirement System, and former CalPERS board member Alfred Villalobos with conspiring to commit fraud, obstruction of justice and other charges.

The Securities and Exchange Commission filed a lawsuit against the pair last year.

The SEC alleged the pair fabricated financial documents to dupe a prominent investment firm into paying $20 million in fees to Villalobos' firms for investing $3 billion worth of CalPERS' money.

Buenrostro was CalPERS' CEO from late 2002 through June 2008. The day after retiring from CalPERS, he began working at Villalobos' firm.

Subscribe today! Click here for our subscription offers.



Show commenting policy

Most-Read Business Headlines

  1. Pennsylvania Game Commission reaps revenue from shale gas under game lands
  2. University of Pittsburgh researchers revisit war of electric currents
  3. As historic breakup nears, Alcoa works to redefine its ‘advantage’
  4. Energy Spotlight: Minking Chyu
  5. Covestro leader MacCleary finds stability amid change
  6. Union leaders warn Post-Gazette newsroom of possible layoffs
  7. Older workers try to cut back on hours at job
  8. Program lets public service workers be forgiven for student debt
  9. Paying pals digitally catches on
  10. Stocks close quiet week with little change
  11. Black Friday chaos dwindles thanks to earlier deals, online sales