CalPERS is a massive financial beast. It is a whale in the pension world. Billions of taxpayer dollars and employee contributions flow into it. And everyone wants a piece. Apparently.
The sentencing is the result of a years-long investigation into money management middlemen who helped clients win investment business from the fund which as about $290 billion in assets. Buenrostro faced up to five years in prison but the US attorney’s office asked for a four year term, citing Buenrostro’s cooperation. As part of a plea deal, Buenrostro acknowledged giving Villalobos access to confidential investment information and forging letters that enabled firms connected with Villalobos to collect a $14 million commission on $3 billion worth of pension fund investments. The former CEO has also agreed to pay back $250,000 to the state.