The pay-to-play type scandal involves a former placement official and the former CEO of CalPERS. Using millions of dollars of grease money, they pursuaded their ex-colleagues on the CalPERS board to direct hundreds of millions of dollars to their clients.
The resulting scandal could be the worst in CalPERS history.
From the Sacramento Bee:
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.
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.
Khinda named four other CalPERS officials close to Villalobos: former board members Charles Valdes, Kurato Shimada and the late Robert Carlson, and former investment officer Leon Shahinian.
Read the full article here.