Tuesday, September 16, 2014
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Ex-chief of huge pension fund guilty of bribery

By
From page A1 | July 12, 2014 |

SAN FRANCISCO — The former head of the nation’s largest pension fund admitted Friday that he took bribes, including hundreds of thousands of dollars stuffed in paper bags and a shoe box, and helped an associate collect millions in a fraudulent investment scheme.

Fred Buenrostro Jr. pleaded guilty in San Francisco federal court to fraud and bribery charges stemming from his time as chief executive of the California Public Employees’ Retirement System from 2002 to 2008.

In his plea agreement, Buenrostro said that in exchange for his help Alfred Villalobos, a former CalPERS board member, took him on a trip around the world, gave him casino chips and paid for his wedding in Lake Tahoe, California.

Villalobos denied the allegations through his attorney Friday.

Buenrostro’s guilty plea arises from a yearslong investigation into the role of money-management firm middlemen, called placement agents, in helping clients win investment business from a California pension system that controls $300 billion.

CalPERS said the investigation has prompted it to take “aggressive steps to implement policies and reforms that strengthen accountability and ensure full transparency.”

Buenrostro said in his plea that he started taking bribes in 2005 to use his influence with CalPERS to make investment decisions to help Villalobos’ clients. He also said he gave Villalobos, a CalPERS board member in the mid-90s, access to confidential investment information.

The 64-year-old former executive said he forged letters allowing firms connected with Villalobos to collect a $14 million commissions on $3 billion pension fund investments. He said he started writing bogus investor disclosure letters after CalPERS legal and investment officials declined to authorize them.

Further, Buenrostro said after he left CalPERS and went to work for Villalobos that he accepted $50,000 to lie to federal investigators in 2010 about their relationship.

Buenrostro faces five years in prison and a $250,000 fine when he is sentenced in January. In exchange for a lesser sentence, Buenrostro has agreed to cooperate with the continuing investigation of Villalobos, said Buenrostro lawyer William Portonova. “He got tired of lying,” Portonova said. “He’s ready to tell the truth.”

Villalobos has pleaded not guilty to fraud charges and other related counts. His attorney, Bruce Funk, said his client denies the claims contained in Buenrostro’s plea agreement. “If he’s truthful, there is nothing he can say that will hurt Mr. Villalobos,” Funk said.

Buenrostro and Villalobos, 70, also face two government lawsuits.

The state attorney general sued in 2010, saying Buenrostro and Villalobos, along with other former pension board and staff members, participated in kickback scheme.

At that time, the attorney general obtained a court order freezing assets of Villalobos and his company in an attempt to recover more than $40 million in commissions. Villalobos filed for bankruptcy later in 2010. His assets included 20 bank accounts, two Bentleys, two BMWs, a Hummer, art worth more than $2.7 million and 14 properties in California, Nevada and Hawaii. None of Buenrostro’s assets were seized.

State attorney general spokesman Nick Pacilio said a trial is scheduled for Sept. 8 in San Francisco Superior Court.

The Securities and Exchange Commission has also filed a lawsuit in 2012, which is still pending.

In a related sanction, the state’s campaign watchdog, the Fair Political Practices Commission, fined other executives and investment managers in 2011 for failing to report gifts that included food, wine and baseball and Rose Bowl tickets.

 

The Associated Press

The Associated Press

LEAVE A COMMENT

Discussion | 2 comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • rlw895July 12, 2014 - 10:19 am

    CalPERS better get it's house in order. It's an amazing story of corruption.

    Reply | Report abusive comment
  • Mr. Green ValleyJuly 12, 2014 - 11:37 am

    CalPERS members better hope CalPERS gets their act together. Especially if they are counting in the pensions for their retirement. Look at what's going on with the city of Stockton, Detroit and social security. The government corruption will screw all the hard working members while continuing to lie for their votes. Sounds a lot like Washington doesn't it?

    Reply | Report abusive comment
.

Solano News

 
Police enlist help to find armed bandit

By Jess Sullivan | From Page: A5, 2 Comments | Gallery

 
Chamber PAC draws candidates to Jelly Belly

By Jess Sullivan | From Page: A5 | Gallery

 
Police catch 10 during weekend checkpoint

By Glen Faison | From Page: A5

 
Weather for Tuesday, Sept. 16, 2014

By Daily Republic staff | From Page:

Coastal Cleanup Day targets local waterways

By Barry Eberling | From Page: A3 | Gallery

 
Drama reigns supreme with week’s film debuts

By Amy Maginnis-Honey | From Page: A7

 
Judge questions juror in Calkins case

By Barry Eberling | From Page: A5

Suisun City slaying suspect case moves forward

By Amy Maginnis-Honey | From Page: A5

 
Touro University to host Zombie Run/Walk

By Amy Maginnis-Honey | From Page: A5

Land trust organizes Rockville Trails Preserve hike

By Barry Eberling | From Page: A5

 
.

US / World

6 killed, 15 wounded in east Ukraine city

By The Associated Press | From Page:

 
Afghan suicide bomber kills 3 foreign troops

By The Associated Press | From Page:

 
State Sen. Wright resigns after voter fraud case

By The Associated Press | From Page:

Gazans rush to enjoy life after ruinous war

By The Associated Press | From Page:

 
Decades later, Vietnam soldiers get Medal of Honor

By The Associated Press | From Page: | Gallery

Mystery airstrikes target Libyan Islamist militias

By The Associated Press | From Page:

 
Tiny Qatar plays outsize role in US war strategy

By The Associated Press | From Page:

Generation gap: Young Scots favor independence

By The Associated Press | From Page: | Gallery

 
Police: Rifle used to ambush Pennsylvania troopers

By The Associated Press | From Page:

Hurricane Odile slams Mexico’s Baja California

By The Associated Press | From Page: | Gallery

 
House GOP moves ahead on Syrian rebel training

By The Associated Press | From Page:

Kerry: US open to talks with Iran on Islamic State

By The Associated Press | From Page: | Gallery

 
Poll: Voters support legal path for immigrants

By The Associated Press | From Page:

Man suspected of firing on kids at ice cream truck

By The Associated Press | From Page:

 
NASA inspector blasts asteroid protection program

By The Associated Press | From Page:

Officials disclose Delaware funeral home Jonestown remains

By The Associated Press | From Page:

 
Southern California swelters in heat wave

By The Associated Press | From Page:

Northern California wildfire burns 100 homes

By The Associated Press | From Page: | Gallery

 
9 hurt in crash on SF Bay Area freeway

By The Associated Press | From Page:

PG&E officials removed for improper communications

By The Associated Press | From Page:

 
Chicago, NY, Hawaii on Obama library’s short list

By The Associated Press | From Page: , 1 Comment | Gallery

Powerful Washington lobbyist Boggs dies at 73

By The Associated Press | From Page:

 
.

Opinion

 
Column focus on campaign signs misplaced

By Letter to the Editor | From Page: A11, 2 Comments

.

Living

Community Calendar: Sept. 16, 2014

By Susan Hiland | From Page:

 
.

Entertainment

Apple releases tool to remove free U2 album

By The Associated Press | From Page:

 
Cat Stevens announces brief US concert tour

By The Associated Press | From Page: | Gallery

Forward-thinking U2 innovating while entertaining

By The Associated Press | From Page: | Gallery

 
Revamped ‘View’ begins its daytime run

By The Associated Press | From Page: | Gallery

Clooney to receive HFPA’s Cecil B. DeMille Award

By The Associated Press | From Page:

 
Exhibition looks at genius of carousel inventor

By The Associated Press | From Page: | Gallery

Miss America: More to worry about than red cup

By The Associated Press | From Page: | Gallery

 
Protocol followed in detention of actress

By The Associated Press | From Page: | Gallery

Jean Paul Gaultier to stop making ready-to-wear

By The Associated Press | From Page:

 
Atlanta rapper Gucci Mane sentenced in assault

By The Associated Press | From Page:

Bob Crewe, ‘Walk Like a Man’ writer, dead at 83

By The Associated Press | From Page:

 
TVGrid Seot 16

By Daily Republic Syndicated Content | From Page: B6

.

Sports

Diamondbacks knock off Giants 6-2

By The Associated Press | From Page:

 
Prep boys soccer: Vanden wins, Armijo ties, VCS falls

By Daily Republic staff | From Page:

Prep volleyball: VCS swept by Woodland Christian

By Daily Republic staff | From Page:

 
Foles leads Eagles to 30-27 win against Colts

By The Associated Press | From Page:

This date in sports history for Tuesday, Sept. 16, 2014

By The Associated Press | From Page:

 
Cardinals manager can relate to Stanton incident

By The Associated Press | From Page:

As troops exit, Britain aids soccer in Afghanistan

By The Associated Press | From Page:

 
US uses big third quarter to pull away from Canada

By The Associated Press | From Page:

Backup QBs make their marks in Week 2

By Barry Wilner | From Page:

 
NFL, union close to finalizing new drug policy

By The Associated Press | From Page:

Tanaka 5 scoreless innings in instructional league

By The Associated Press | From Page:

 
Mets rookie deGrom ties K mark; Marlins win 6-5

By The Associated Press | From Page:

Papelbon suspended 7 games by MLB

By The Associated Press | From Page:

 
Dream Team, Barcelona Games continue to impact NBA

By The Associated Press | From Page:

US basketball reigns in Spain, awaits Rio Olympics

By The Associated Press | From Page:

 
AP Source: Raiders to sign WR Vincent Brown

By The Associated Press | From Page:

Raiders embarrassed after 0-2 start

By The Associated Press | From Page:

 
Redskins optimistic RG3 will return this season

By The Associated Press | From Page:

 
Pistorius free to compete, SA Olympic body says

By The Associated Press | From Page:

Woods says strength is back, but not swing

By The Associated Press | From Page:

 
Domestic violence experts added as NFL advisers

By The Associated Press | From Page:

Union expects to file Rice appeal Tuesday

By The Associated Press | From Page:

 
Vikings bring back Peterson despite abuse charge

By The Associated Press | From Page:

 
Patriots still not quite right with ball

By The Associated Press | From Page:

Harbaugh: McDonald’s legal process must play out

By The Associated Press | From Page: | Gallery

 
.

Business

US wealth gap putting the squeeze on state revenue

By The Associated Press | From Page:

 
Speculation swirls over Fed language on rate hike

By The Associated Press | From Page:

GM expert says 19 deaths eligible for compensation

By The Associated Press | From Page:

 
Once-troubled reverse mortgages poised for rebound

By The Associated Press | From Page:

Apple: Record 4M orders of iPhones on 1st day

By The Associated Press | From Page:

 
‘Minecraft’ could boost Microsoft’s mobile reach

By The Associated Press | From Page:

Stocks mixed ahead of Fed; small companies slump

By The Associated Press | From Page:

 
.

Obituaries

Minnie Lee Dixon

By Susan Hiland | From Page: A4

 
.

Comics

Baby Blues Sept 16

By Daily Republic Syndicated Content | From Page: B4

 
Get Fuzzy Sept 16

By Daily Republic Syndicated Content | From Page: B4

Blondie Sept 16

By Daily Republic Syndicated Content | From Page: B4

 
Peanuts Sept 16

By Daily Republic Syndicated Content | From Page: B4

Sudoku Sept 16

By Daily Republic Syndicated Content | From Page: B5

 
Baldo Sept 16

By Daily Republic Syndicated Content | From Page: B4

Zits Sept 16

By Daily Republic Syndicated Content | From Page: B4

 
Sally Forth Sept 16

By Daily Republic Syndicated Content | From Page: B4

Crossword Sept 16

By Daily Republic Syndicated Content | From Page: B5

 
Beetle Bailey Sept 16

By Daily Republic Syndicated Content | From Page: B4

For Better or Worse Sept 16

By Daily Republic Syndicated Content | From Page: B4

 
Pickles Sept 16

By Daily Republic Syndicated Content | From Page: B4

Dilbert Sept 16

By Daily Republic Syndicated Content | From Page: B4

 
Bridge Sept 16

By Daily Republic Syndicated Content | From Page: B5

Garfield September 16

By Daily Republic Syndicated Content | From Page: B4

 
Frank and Ernest Sept 16

By Daily Republic Syndicated Content | From Page: B4

Word Sleuth Sept 16

By Daily Republic Syndicated Content | From Page: B5

 
Rose is Rose Sept 16

By Daily Republic Syndicated Content | From Page: B4

Wizard of Id Sept 16

By Daily Republic Syndicated Content | From Page: B4

 
B.C. Sept 16

By Daily Republic Syndicated Content | From Page: B4

Cryptoquote Sept 16

By Daily Republic Syndicated Content | From Page: B5