Published Tuesday, Mar. 15, 2011
The bribery scandal at CalPERS likely cost the pension fund tens of millions of dollars in inflated fees, a lawyer hired by CalPERS to investigate the case said Monday. [Readers should remember we, the taxpayers are on the hook for the lost dollars which are part of the promise politicians made to CalPERS members with our money, for their benefits. That's the rub!]
Washington lawyer Philip Khinda, in a report to the California Public Employees' Retirement System board, said former "placement agent" Alfred Villalobos corrupted top pension fund officials, notably former Chief Executive Fred Buenrostro, to steer investments to his clients.
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John Seiler at Cal Watch Dog asks: How much more of this are Californians going to take? Will another tax increase be needed?
L.A. Times Reports:
In a scathing report, a former chief executive of the California public employee pension fund was accused of pressuring subordinates to invest billions of dollars of pension money with politically connected firms.Click here to read more.
A 17-month investigation also found that Federico Buenrostro Jr. — along with former pension fund board members Charles Valdes and Kurato Shimada — strong-armed a benefits firm to pay more than $4 million in fees to consultant Alfred J.R. Villalobos, who later hired Buenrostro.
The report, prepared for the California Public Employees’ Retirement System by Washington law firm Steptoe & Johnson, comes amid widening attacks on public employee pension funds in California, Wisconsin, Iowa and other states for providing lavish benefits that cash-strapped governments can no longer afford.