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Former CalPERS CEO Indicted in Fraud Scheme

The California Public Employees' Retirement System building in Sacramento, Calif.
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The California Public Employees' Retirement System building in Sacramento, Calif.

A federal grand jury has indicted former California Public Employees' Retirement System (or CalPERS) Chief Executive Officer Federico Buenrostro on conspiracy charges in connection with a scheme to commit fraud, the U.S. Department of Justice said on Monday.

The grand jury also indicted Alfred Villalobos, a former member of the pension fund's board, in connection with the scheme involving fraudulent documents related to a $3 billion investment of the retirement system in funds managed by New York-based private equity firm Apollo Global Management.

The U.S. Securities and Exchange Commission last year charged the two men with scheming to defraud Apollo.

Current CalPERS leadership, in a press release issued following the grand jury indictments, called the Justice Department's actions against Buenrostro and Villalobos "another step on the road toward justice."