Federico Buenrostro, former chief executive officer of the California Public Employees’ Retirement System, was charged with conspiring to trick the pension fund into paying millions of dollars in fees for a $3bn investment into funds managed by Apollo Global Management.
Bloomberg reports Buenrostro, 64, who led the state’s public pension fund from 2002 to 2008, was accused along with Alfred Villalobos, 69, of conspiracy to defraud the U.S., engaging in a false scheme against the U.S. and conspiracy to commit mail fraud and wire fraud in a grand jury indictment announced Monday by U.S. Attorney Melinda Haag in San Francisco.
The case focuses on false documents the two men allegedly created so Villalobos could garner millions of dollars in fees for acting as a middleman in obtaining money from Calpers, the largest U.S. public pension fund, for the Apollo funds.
Fees for middlemen were at the center of a corruption scandal in which Villalobos, a Calpers board member from 1993 to 1995, was sued by state prosecutors and the pension system’s head of private equity resigned.
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