The former head of the largest public pension system in the country is set to plead guilty for illegally steering private equity placement fees to a friend.
Federico Buenrostro, previously CEO of the California Public Employees' Retirement System, has agreed to enter a plea to a single count of conspiracy, according to a Los Angeles Times report citing statements by his lawyer, William Portanova.
After years of denial, Buenrostro will now help prosecutors build a criminal case against co-defendant Alfred Villalobos, a former CalPERS board member, according to the report.
A lawyer for Buenrostro, William Portanova, did not immediately respond to a request for comment.
"Buenrostro and Villalobos not only tricked Apollo into paying more than $20 million in placement agent fees it would not otherwise have paid, but also undermined procedures designed to ensure that investors like CalPERS have full disclosure of such fees," said John M. McCoy III, associate regional director of the the Securities and Exchange Commission's Los Angeles Regional Office, in charging Buenrostro in 2012.
Read the full story here.