CalPERS probe becomes criminal investigation
Published: Friday, Mar. 26, 2010 - 9:55 am
The CalPERS influence-peddling probe has turned into a criminal investigation, the Wall Street Journal reported today.
The newspaper, quoting anonymous sources, said U.S. Justice Department investigators in Los Angeles are looking into whether investment decisions at public pensions funds such as CalPERS were influenced by illegal payments.
Six individuals have pleaded guilty to criminal charges in connection with a corruption probe involving New York state's public pension fund, but so far no one has been charged in the CalPERS investigation.
CalPERS officials said today they haven't been contacted by criminal authorities.
"We aren't aware of any criminal investigation," said Brad Pacheco, spokesman for the California Public Employees' Retirement System.
CalPERS hired a Washington law firm last fall to investigate the activities of placement agents after disclosing that one agent - former CalPERS board member Alfred Villalobos - earned roughly $60 million in fees helping clients obtain investments from the big pension fund. CalPERS later revealed that the ten most prolific placement agents earned fees totaling $125 million.
The Journal said criminal investigators are scrutinizing a few individuals for their possible role in
Read more: http://www.sacbee.com/2010/03/26/2635688/calpers-probe-becomes-criminal.html#mi_rss=Latest%20News#ixzz0jIqZlRsU