Politics & Government
CalPERS To Settle Bribery Lawsuit For $20 Million
The agency manages pension and health benefits for more than 1.6 million California public employees, retirees and families.
By LINDSEY HICKMAN (Patch Staff)
CalPERS, an agency in the California executive branch that manages pension and health benefits for more than 1.6 million California public employees, retirees and their families, settled a civil lawsuit Tuesday, agreeing to accept $20 million for bribery accusations, which includes $10 million in attorney fees.
Nevada investment bank, Arvco Capital Research, agreed to pay the state following accusations that the owner, Alfred Villalobos bribed officials at CalPERS. Villalobos has since passed away according to reports by the SacBee.
State officials reportedly filed the lawsuit nearly six years ago against Villalobos personally, the bank, and the former CalPERS CEO Fred Buenrostro stating they had created a scheme to steer investment money Villalobos’ private investment firms over a several year period.
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Buenrostro also settled, agreeing to pay the state $250,000.
Read more in the article by SacBee.
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