WASHINGTON (AP) -- Federal regulators have accused the former CEO of California's big employee pension fund and a friend of conspiring to trick a prominent investment firm into paying $20 million in fees to the friend's firms.
The Securities and Exchange Commission on Monday filed civil fraud charges against Federico Buenrostro, the former CEO of the California Public Employees' Retirement System, known as CalPERS, and his friend Alfred J.R. Villalobos. The SEC said they fabricated documents to trick investment firm Apollo Global Management into paying fees to Villalobos's firms for helping market securities.
The documents had a fake CalPERS logo and gave Apollo the false impression that the pension system, before investing, had properly reviewed and signed fee disclosure letters, the SEC said.
Buenrostro's attorney didn't immediately return a call seeking comment.
The Associated Press