Posted By CotoBlogzz 05-06-2010 01:00 PM
LOS ANGELES, CA- The California Attorney General (AG) today announced
that the AG's office has filed a civil suit against former California Public
Employees Retirement System (CalPERS) Board Member Alfred Villalobos,
his company ARVCO Capital, and former CalPERS CEO Federico "Fred"
Buenrostro, charging them with fraud.
According to the AG, working as a placement agent for ARVCO, Villalobos spent tens of
thousands of dollars to lavishly entertain key senior executives at
CalPERS, who then influenced the Board to authorize investments that
generated over $40 million in commissions to Villalobos, none of these actions were disclosed as required by law.
According to the complaint, Villalobos influenced these CalPERS
officials by, among other things, taking two of them on an
around-the-world trip, taking another on a private jet trip to New
York, and giving Buenrostro a $300,000 job and a condo when he left the
The AG also obtained a court order to freeze Villalobos' assets and
place them in receivership to recover the more than $40 million in
commissions that Villalobos earned during the period alleged in the
complaint. According to the AG, the granted freeze order
was necessary because Villalobos has transferred real estate
suspiciously, has lost millions of dollars in high-stakes
gambling, and maintains over 20 bank accounts. Among the assets placed
under receivership are two Bentleys, two BMWs, a Hummer H2, art work
worth more than $2.7 million, $6 million in yet-to-be-paid
placement-agent commissions, and 14 pieces of real property in
California, Nevada and Hawaii.
Specific charges allege that:
- Villalobos and ARVCO falsely represented that they had the required securities licenses and complied with all laws;
- Defendants gave, accepted, and failed to disclose gifts;
- Villalobos and ARVCO submitted bogus disclosure forms.