Fall of the mighty - Former Calpers chief accused of fraud

This case is the latest step in a long-running investigation into abuses at Calpers, which has been seen as a champion of corporate governance, related to the payment of fees for access to the pension fund.

A former head of the California Public Employees Retirement System [Calpers], the largest US pension fund, has been hit with civil charges accusing him of defrauding Apollo Global, the private equity group.

The Securities and Exchange Commission accused Federico Buenrostro, former Calpers chief executive, and a friend of fabricating documents designed to show that $20m in fees paid by Apollo to Arvco, a placement agent, for help securing the pension funds investment had been fully disclosed. Apollo has not been accused of any wrongdoing ... READ MORE

Released by the Financial Times - 23 April 2012