Shopping Cart
Your Cart is Empty
Quantity:
Subtotal
Taxes
Shipping
Total
There was an error with PayPalClick here to try again
CelebrateThank you for your business!You should be receiving an order confirmation from Paypal shortly.Exit Shopping Cart

California School Fiscal Services

Providing comprehensive business office and consulting services to K-12 traditional schools and charters

Blog

Blog

Former CalPERS chief admits to receiving $200,000 in bribes in paper bag, shoebox

Posted on July 11, 2014 at 10:20 AM

Wow! Just another example of why we should never say "I've heard it all!"

 

Notwithstanding that crime itself, I find a couple of things interesting here. First, I did have to laugh when I read that the payoff occurred at the Downtown Hyatt Sacramento. I hope it didn't coincide with a SSC workshop! Secondly, I also found it comical that the potential fines equal the amount he received in bribes. (If you believe that is all he received) Last, Buenrostro may have to forfeit part of his own PERS pension. Does anyone really believe that he doesn't have his "real" retirement fund in another shoe box somewhere???

 

Can we still say crime doesn't pay these days?

 

______________________________________________

 

 

By Dale Kasler

[email protected] By Dale Kasler The Sacramento Bee Last modified: 2014-07-11T20:02:34Z Published: Friday, Jul. 11, 2014

 

SAN FRANCISCO -- The first two payments were made in paper bags. The last installment came in a shoebox. The handoffs all came at a Sacramento hotel near the Capitol.

 

In a stunning admission covering years of corruption, the former chief executive of CalPERS said Friday he accepted $200,000 in cash, along with a series of other bribes, from a Lake Tahoe businessman who was attempting to influence billions of dollars in pension fund investment decisions.

 

Fred Buenrostro, who ran the nation’s largest public pension fund from 2002 to 2008, pleaded guilty in U.S. District Court to a charge of conspiracy to commit bribery and fraud. He has agreed to cooperate with federal prosecutors as they pursue charges against his longtime friend, Nevada businessman Alfred Villalobos, a former CalPERS board member.

 

Buenrostro, 64, admitted that Villalobos plied him with casino chips and a trip around the world, plus a high-paying job with his investment firm after leaving CalPERS. He also admitted working with Villalobos to create phony documents to ensure that Villalobos earned his multimillion-dollar fees representing a Wall Street private equity firm seeking CalPERS investments.

 

Most of those allegations had been aired publicly already. What was new Friday was the blockbuster admission that Buenrostro took $200,000 in cash from Villalobos. In his written plea agreement, Buenrostro said Villalobos paid him in three installments in 2007, “all of which was delivered directly to me in the Hyatt hotel in downtown Sacramento across from the Capitol.”

 

According to Buenrostro, Villalobos told him to be careful how he deposited the cash in order to avoid detection by banking authorities. “Villalobos told me to be sure to ‘shuffle’ the currency before making any deposit, as the bills were new and appeared to be in sequential order,” Buenrostro wrote.

 

Later, after he’d left CalPERS and the investigation into their relationship gained momentum, Buenrostro said he accepted an additional $50,000 from Villalobos, paid by check.

 

The former CEO’s guilty plea is the latest chapter in a corruption scandal that first surfaced in 2009 at the California Public Employees’ Retirement System. Documents showed that Villalobos, a former deputy mayor of Los Angeles, had earned $50 million helping his Wall Street clients win investments from CalPERS over several years.

 

“We condemn the misconduct and ethical breaches admitted today by Mr. Buenrostro,” CalPERS said in a prepared statement. “CalPERS looks forward to justice being served in this case and for the individuals involved to be held accountable for their actions.”

 

After years of denying any wrongdoing, Buenrostro faces up to five years in prison and a $250,000 fine when he’s sentenced Jan. 7, 2015. He remains free on bond.“

 

There is no question that the chickens have come home to roost for Mr. Buenrostro,” said his lawyer, William Portanova of Sacramento, after a brief court hearing. “He is starting a new chapter in his life. He is a 64-year-old man who is ready to tell all.” Buenrostro declined comment as he left the courtroom.

 

His old friend Villalobos will continue to fight charges filed in the case, said Villalobos’ defense attorney Bruce Funk.

 

“We don’t think there’s any truthful information (Buenrostro) could give that could affect Mr. Villalobos,” Funk said after the court hearing.

 

The criminal trial was supposed to begin earlier this week with jury selection. Instead, it has been postponed, probably until the fall. Villalobos, 70, is in poor health and wasn’t in court Friday. He listened to the proceedings by phone.

 

Buenrostro, in his plea agreement, admitted taking bribes large and small. He let Villalobos host and pay for his 2004 wedding at Lake Tahoe. Villalobos took Buenrostro and a CalPERS board member on a 2006 worldwide trip (The member isn’t identified in the plea agreement, but a state lawsuit filed in 2010 identified him as Charles Valdes, who has since left the board).

 

Villalobos paid for his rooms at two Tahoe casinos, Harveys and Harrah’s. And Villalobos delivered on a promise of a $25,000-a-month job for Buenrostro after the CEO left CalPERS in 2008. The job ended two years later, about the time Villalobos and his company filed for bankruptcy.

 

In 2005, Buenrostro said he watched Villalobos give casino chips to certain CalPERS board members and to Buenrostro’s wife. At the time, CalPERS was considering awarding a pharmacy contract to a health care company.

 

Buenrostro didn’t identify the company, and said the board members are no longer at CalPERS. In 2011, CalPERS fired a New Jersey drug-distributor, Medco Health Solutions, after it was revealed that Medco paid Villalobos about $4 million to help win a contract to supply pharmaceuticals to CalPERS members. The firm, which was later sold, paid a $2.7 million fine to settle a state investigation but didn’t admit any wrongdoing.

 

In addition, Buenrostro said he worked with Villalobos to “cover up the evidence of our corrupt relationship by concealing and destroying records.” In 2010, after he invoked his Fifth Amendment right against self-incrimination during questioning by Securities and Exchange Commission investigators, Buenrostro said he received a $50,000 check from Villalobos.

 

Buenrostro said the $50,000 was supposedly a loan, but Villalobos told him he probably wouldn’t have to repay it.

 

If Buenrostro had gone to trial and been convicted on all charges, he was facing up to 40 years in prison. The conspiracy charge to which he admitted carries a five-year maximum penalty. So far the prosecutors haven’t made any sentencing recommendation, but agreed to ask for a reduced sentence based on Buenrostro’s “truthful cooperation,” said his lawyer Portanova. U.S. District Judge Charles Breyer will sentence him.

 

The original indictment was fairly narrow. It focused mainly on a series of letters Buenrostro said he created on CalPERS stationery at Villalobos’ behest.

 

Villalobos’ most important client, Apollo Global Management, had demanded disclosure letters in which the pension fund said it realized that Villalobos would earn fees from Apollo if the firm got CalPERS investments. When he couldn’t get a CalPERS investment officer to sign a disclosure letter, Villalobos turned to Buenrostro, who put together the letters on the pension fund’s stationary, according to the plea agreement.

 

Buenrostro said no one at CalPERS saw the letters, which Villalobos then mailed to Apollo. The firm got $3 billion of CalPERS’ money in 2007 and 2008, and Villalobos earned fees of $14 million. Apollo has said it wasn’t aware of any wrongdoing.

 

An investigative report commissioned by CalPERS said it was unlikely that Villalobos and Buenrostro were able to steer investment dollars to Villalobos’ clients. But the report, by Washington, D.C., securities attorney Philip Khinda, said Villalobos’ clients probably charged CalPERS millions of dollars in extra investment-management fees to compensate for the money they paid Villalobos.

 

The guilty plea marked the latest chapter in the downfall of Buenrostro, a longtime state employee and former deputy director of the state Department of Personnel Administration who became CalPERS CEO in 2002.

 

Because of his guilty plea to a felony, Buenrostro could have to forfeit a portion of his CalPERS pension, said fund spokesman Brad Pacheco. The amount is to be determined, he said.

Categories: Lawsuits

Post a Comment

Oops!

Oops, you forgot something.

Oops!

The words you entered did not match the given text. Please try again.

19744 Comments

Reply goyard bags
8:29 AM on August 19, 2022 
Thank you a lot for providing individuals with an extremely memorable possiblity to check tips from this site. It can be so excellent and as well , full of fun for me and my office colleagues to visit your web site minimum 3 times a week to learn the new guidance you have got. Not to mention, I'm so certainly amazed considering the spectacular tricks served by you. Some 3 areas in this posting are indeed the simplest I have ever had.
goyard bags http://www.goyardshandbag.us
Reply jordan 6
4:50 AM on August 19, 2022 
My husband and i felt really ecstatic Emmanuel could finish off his research using the ideas he grabbed through your blog. It's not at all simplistic to just happen to be freely giving tips which usually many people have been trying to sell. We really do know we have got the website owner to be grateful to for this. The main explanations you made, the simple web site menu, the relationships your site assist to foster - it's got everything wonderful, and it's really helping our son and our family consider that that situation is pleasurable, which is extremely fundamental. Thank you for everything!
jordan 6 http://www.jordan6.us.com
Reply cheap curry 6
4:49 AM on August 19, 2022 
I have to point out my affection for your kindness supporting persons who require help with this particular subject. Your personal commitment to passing the message along appeared to be especially productive and have regularly empowered somebody like me to realize their goals. Your own invaluable hints and tips implies this much a person like me and somewhat more to my fellow workers. Thank you; from each one of us.
cheap curry 6 http://www.curry-6.us
Reply golden goose outlet
4:49 AM on August 19, 2022 
I have to show appreciation to the writer for bailing me out of this type of predicament. Because of checking throughout the the web and coming across solutions which were not productive, I believed my life was done. Living devoid of the approaches to the difficulties you have sorted out through this short article is a serious case, as well as those that might have in a wrong way damaged my entire career if I hadn't discovered your blog. Your good capability and kindness in taking care of almost everything was valuable. I am not sure what I would have done if I hadn't discovered such a subject like this. I am able to at this time relish my future. Thanks for your time so much for your skilled and sensible help. I won't think twice to recommend your web blog to anybody who should get guide on this issue.
golden goose outlet http://www.goldengooseoutletonline.us.com
Reply pg 4
4:49 AM on August 19, 2022 
I simply desired to thank you so much all over again. I do not know the things I would have sorted out without the actual opinions revealed by you regarding my field. It previously was a very horrifying dilemma in my opinion, nevertheless looking at the very skilled strategy you processed the issue made me to weep over gladness. I am just thankful for this information and thus wish you find out what an amazing job you were accomplishing teaching people today all through your site. I know that you've never got to know any of us.
pg 4 http://www.paulgeorgeshoes.us.com
Reply cheap kd 13
4:48 AM on August 19, 2022 
I needed to draft you one very small note just to thank you very much once again considering the extraordinary concepts you've contributed on this page. It was certainly particularly generous with people like you to present unhampered what many of us would've made available as an ebook to end up making some profit for their own end, most notably since you might well have tried it if you ever considered necessary. Those concepts also served to provide a fantastic way to know that other people online have a similar keenness just as my own to know the truth a little more with regard to this condition. I'm certain there are thousands of more pleasant periods up front for many who take a look at your website.
cheap kd 13 http://www.kd13shoes.us
Reply kyrie 7
4:18 AM on August 19, 2022 
Thank you so much for giving everyone an extraordinarily superb opportunity to discover important secrets from this site. It really is very cool plus stuffed with a lot of fun for me and my office colleagues to visit your web site really thrice in a week to read the newest items you have got. And definitely, I'm also certainly pleased with your fabulous principles served by you. Certain 3 ideas in this article are in reality the most impressive we've ever had.
kyrie 7 http://www.kyrie7.us
Reply hermes handbags
3:56 AM on August 19, 2022 
I truly wanted to compose a brief message so as to express gratitude to you for all of the awesome tricks you are posting here. My time consuming internet search has at the end been recognized with really good content to go over with my two friends. I 'd mention that most of us site visitors actually are unequivocally fortunate to dwell in a magnificent network with so many perfect professionals with great concepts. I feel very much happy to have discovered the website page and look forward to so many more amazing minutes reading here. Thank you again for everything.
hermes handbags http://www.hermes-handbags.us.com
Reply Joejeaky
3:46 AM on August 19, 2022 
original cialis buy generic wellbutrin online buy azithromycin without prescription plaquenil for fibromyalgia best generic trazodone prescription metformin for sale where can i get metformin online augmentin australia
Reply kobe basketball shoes
2:28 AM on August 19, 2022 
I precisely wished to thank you very much once more. I am not sure the things that I might have taken care of without the type of tips documented by you on such a situation. Entirely was a frightening circumstance in my circumstances, but noticing your well-written style you managed the issue forced me to cry over happiness. Now i am happy for the help and even hope that you really know what a great job that you are doing educating the others through the use of your blog. Most likely you haven't encountered any of us.
kobe basketball shoes http://www.kobebasketballshoes.net
Reply expaxemia
2:13 AM on August 19, 2022 
Amoxicillin Dosage For Macaw stromectol 12 mg buy Tadafil Softsule Tuf 20
Reply kawhi leonard shoes
2:11 AM on August 19, 2022 
My spouse and i were fulfilled when Raymond managed to round up his survey through the ideas he got through your web pages. It's not at all simplistic just to continually be making a gift of techniques which some other people could have been trying to sell. And now we grasp we need the blog owner to thank because of that. Those explanations you've made, the simple blog menu, the relationships you help to instill - it's most superb, and it's really facilitating our son and our family do think that matter is brilliant, which is certainly pretty indispensable. Thank you for the whole lot!
kawhi leonard shoes http://www.kawhileonardshoes.us
Reply Riccab
10:35 PM on August 18, 2022 
lioresal canada zoloft 100 mg pill
Reply golden goose sneakers
12:31 PM on August 18, 2022 
I want to express some appreciation to you for rescuing me from this particular matter. Right after exploring throughout the the web and finding tips which were not pleasant, I thought my life was gone. Being alive without the solutions to the difficulties you've fixed all through your entire guideline is a critical case, as well as the kind which could have in a wrong way affected my entire career if I hadn't encountered your website. Your main mastery and kindness in dealing with every part was excellent. I'm not sure what I would've done if I had not discovered such a subject like this. I can at this moment relish my future. Thank you very much for the skilled and amazing help. I won't be reluctant to suggest your web site to any person who will need tips on this situation.
golden goose sneakers http://www.goldengoosesonline.com
Reply cheap jordans
11:48 AM on August 18, 2022 
Needed to create you a very little remark to help thank you so much as before with the beautiful ideas you've featured in this case. It was quite pretty generous with people like you to offer openly precisely what numerous people could possibly have marketed for an electronic book in making some profit on their own, mostly considering the fact that you could have done it in case you desired. Those guidelines also served to become easy way to fully grasp that someone else have similar dreams similar to my own to see much more concerning this matter. I believe there are several more pleasant occasions in the future for people who scan your site.
cheap jordans http://www.cheap-airjordans.us.com
Reply off white
11:14 AM on August 18, 2022 
I precisely needed to thank you very much all over again. I'm not certain what I would've followed without those points discussed by you relating to my area. Previously it was a real terrifying scenario in my position, but spending time with the professional strategy you managed it made me to jump for joy. Now i'm happy for this help as well as wish you know what an amazing job your are undertaking instructing others thru a site. I am certain you haven't encountered any of us.
off white http://www.offwhites.us.com
Reply golden goose outlet
10:25 AM on August 18, 2022 
I needed to create you that very small remark just to give many thanks the moment again on your pleasant things you've shown in this article. It's quite wonderfully open-handed of people like you to make openly just what a number of us might have marketed for an e book to help make some cash for their own end, precisely considering that you might well have done it in case you considered necessary. The principles likewise acted to become fantastic way to comprehend other people have the same dreams really like mine to find out more and more with respect to this issue. I'm sure there are millions of more pleasant moments up front for those who looked over your site.
golden goose outlet http://www.goldengoosesonline.com
Reply off white
10:25 AM on August 18, 2022 
I definitely wanted to compose a comment to express gratitude to you for those stunning recommendations you are writing on this site. My time intensive internet look up has finally been honored with excellent suggestions to go over with my company. I 'd repeat that many of us visitors actually are unquestionably blessed to be in a superb site with very many marvellous professionals with great concepts. I feel quite blessed to have encountered the web pages and look forward to many more amazing minutes reading here. Thanks once more for a lot of things.
off white http://www.offwhitesonline.com
Reply yeezy shoes
10:24 AM on August 18, 2022 
I simply needed to thank you very much once again. I am not sure what I might have done in the absence of the entire information provided by you over this field. It absolutely was a terrifying issue in my opinion, nevertheless witnessing the specialized style you resolved it made me to weep over delight. I am just thankful for this help and thus wish you are aware of an amazing job you are carrying out training the rest using your web page. More than likely you haven't met all of us.
yeezy shoes http://www.yeezysshoes.us
Reply kyrie 7 shoes
10:24 AM on August 18, 2022 
I precisely desired to appreciate you yet again. I'm not certain the things I might have created in the absence of the type of pointers contributed by you over this subject matter. It seemed to be the fearsome difficulty for me, nevertheless observing the very specialized fashion you solved the issue took me to leap for delight. Now i'm happy for the assistance as well as sincerely hope you really know what a great job your are accomplishing training the rest using your website. I'm certain you've never encountered all of us.
kyrie 7 shoes http://www.kyrie7.us