Thursday, May 06, 2010

Calif Public Employees Retirement System Board Member Charged W Fraud

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 pension fund.

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.

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