Federico Buenrostro who was in charge of CalPERS between 2002 and 2008, and former CalPERS board member Alfred Villalobos “covered up and lied to the Securities and Exchange Commission, the US Postal Inspection Service, and the Federal Bureau of Investigation about the authenticity of the investor disclosure letters” according to federal prosecutors in California.
William Portanova, Buenrostro’s attorney, told Bloomberg his client would plead not guilty and defend himself against the charges at a San Francisco federal court.
Buenrostro, pictured, and Villalobos allegedly forged a letter from the pension fund to Apollo Global Management, which was acting as a placement agent, after the buyout house started requiring investor disclosure letters from LPs before payment of fees in 2007.
That letter was one of a series created by the pair according to prosecutors.
Buenrostro joined Villalobos’ placement agency Arvco the same day he retired from CalPERS in 2008.
Apollo has not been charged with any crime and has co-operated fully with investigators.
Buenrostro and Villalobos have been charged with engaging in a false scheme against the US and conspiracy to commit mail fraud and wire fraud in a grand jury indictment announced by US Attorney Melinda Haag in San Francisco, Bloomberg said.
Buenrostro’s next scheduled court appearance is May 8.
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