Reuters: Regulatory News: SEC charges ex-Calpers CEO, ex-director with fraud

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SEC charges ex-Calpers CEO, ex-director with fraud Apr 23rd 2012, 19:24 Mon Apr 23, 2012 3:24pm EDT * SEC: Ex-CEO, ex-board member fabricated documents * Pair a focus of long-running SEC, California AG probes SAN FRANCISCO, April 23 (Reuters) - The U.S. Securities and Exchange Commission charged a former chief executive of the biggest U.S. public pension fund and one of its former board members with scheming to defraud Apollo Global Management of more than $20 million in placement agent fees. The SEC in a statement on Monday said Federico Buenrostro, a former chief executive of the California Public Employees' Retirement System, and Alfred Villalobos, a former board member of the fund who became a placement agent, fabricated documents that gave the private equity firm the impression the $235 billion pension fund had reviewed and signed placement-agent fee disclosure letters in accordance with its procedures. "In fact, Buenrostro and Villalobos intentionally bypassed those procedures to induce Apollo to pay placement agent fees to Villalobos's firms," the statement said. "The false letters bearing a fake Calpers logo and Buenrostro's signature were provided to Apollo, which then went ahead with the payments." Buenrostro and Villalobos have been the focus of long-running probes by the SEC and the California attorney general's office regarding placement agent activity at Calpers, which has been cooperating in the investigations. The SEC said it seeks an order requiring Buenrostro, Villalobos, and Villalobos' firm to disgorge any ill-gotten gains, pay financial penalties and be permanently enjoined from violating the antifraud provisions of the federal securities law. Link this Share this Digg this Email Reprints

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