• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

2

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling

3

The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 

1

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent

2

Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling

3

The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 
Financeprivate equity

This Big Investor Is Headed To Prison

By
Dan Primack
Dan Primack
Down Arrow Button Icon
By
Dan Primack
Dan Primack
Down Arrow Button Icon
June 2, 2016, 3:56 PM ET
2005 Global Green USA's Annual Millennium Awards
Fred Buenrostro, CEO Calpers during 2005 Global Green USA's Annual Millennium Awards at Beverly Hills Hotel in Los Angeles, California, United States. (Photo by Todd Williamson/FilmMagic)Todd Williamson — FilmMagic/Getty Images

Fred Buenrostro once was CEO of the California Public Employees’ Retirement System, the nation’s largest public pension and one of its most influential institutional investors. Now he’s heading to prison for his role in a pay-to-play scheme that funneled pensioner monies into certain private equity funds for the benefit of a friend.

Buenrostro is not one of the financial titans who enabled the financial crisis, but he’s no small fish.

“I’m humiliated, embarrassed and deeply ashamed of my actions,” the former pension executive reportedly told a federal judge, shortly before sentencing. But the judge didn’t go lightly, giving Buenrostro 4 1/2 years in the pen, which was six months longer than the prosecutor had requested.

For those who haven’t followed the saga, here’s the nutshell version: Buenrostro was friends with Alfred Villalobos, a onetime CalPERS board member who had gone on to become a “placement agent,” helping private equity firms like Apollo Global Management (APO) secure investments for their funds. Villalobos got commissions on such placements, and bribed Buenrostro to provide him with confidential CalPERS information and help steer CalPERS to invest in Villalobos clients. And some of this was pretty explicit, as Villalobos ― who killed himself before going to trial on related charges ― stuffed around $200,000 into shoe boxes and paper bags over a series of three meetings with Buenrostro. Villalobos also paid for Buenrostro’s 2004 wedding and provided all sorts of other financial inducements.

To be clear, there is no evidence that CalPERS suffered financially for the decisions, as many of the Villalobos client funds have generated decent returns. But the breach of trust and fiduciary duty was extreme, and should have been noticed much earlier by other CalPERS staff.

None of the Villalobos clients were ever charged with crimes, apparently employing a successful “see no evil, hear no evil” defense.

“This saga has now come to an end,” said current CalPERS executive Rob Feckner, in a prepared statement. “We are stewards of a sacred trust, and it must never be compromised for personal gain.”

About the Author
By Dan Primack
See full bioRight Arrow Button Icon

Latest in Finance

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Finance

Southwest exec says the free bag and assigned seating overhaul is already paying off
Travel & LeisureCOO Summit
Southwest exec says the free bag and assigned seating overhaul is already paying off
By Preston ForeJune 2, 2026
6 hours ago
Young man looks sadly at computer at home
Future of Workremote work
Mounting evidence suggests remote work is behind the Gen Z hiring nightmare. Even the New York Fed thinks so
By Tristan BoveJune 2, 2026
10 hours ago
Mark Cuban put $500K into a stranger’s rocket company over email. It’s now a SpaceX competitor worth $4 billion
Startups & VentureMark Cuban
Mark Cuban put $500K into a stranger’s rocket company over email. It’s now a SpaceX competitor worth $4 billion
By Sydney LakeJune 2, 2026
11 hours ago
Canada is asking to renew the U.S. and Mexico free-trade agreement for another 16 years
North AmericaCanada
Canada is asking to renew the U.S. and Mexico free-trade agreement for another 16 years
By The Associated Press and Rob GilliesJune 2, 2026
11 hours ago
‘This administration cooked up a sham deal’: New York sues Trump administration for refunding foreign company $1 billion to end offshore wind project
EnvironmentNew York
‘This administration cooked up a sham deal’: New York sues Trump administration for refunding foreign company $1 billion to end offshore wind project
By The Associated Press and Jennifer McDermottJune 2, 2026
13 hours ago
New jobs report shows 7.6 million job openings added in April as layoffs and people quitting their jobs both fell
EconomyU.S. jobs report
New jobs report shows 7.6 million job openings added in April as layoffs and people quitting their jobs both fell
By The Associated Press and Paul WisemanJune 2, 2026
13 hours ago

Most Popular

Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
Environment
Erin Brockovich, the activist who defeated a utility giant and inspired a Julia Roberts film, is pushing data centers to be more transparent
By Marco Quiroz-GutierrezJune 1, 2026
1 day ago
Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling
North America
Social Security unraveling: 7,100 workers sacked, performance metrics retired, disability claims falling
By Katie Savin, Callie Freitag, Matthew Borus and The ConversationJune 2, 2026
15 hours ago
The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 
Energy
The Iran conflict has disrupted oil supply. Gulf states are now looking to multi-billion-dollar investments in renewables 
By Melissa HancockJune 1, 2026
2 days ago
Cognizant CEO is swimming against the tide on AI: he's hiring over 20,000 graduates this year and says AI tokenmaxxing is a 'vanity metric'
Conferences
Cognizant CEO is swimming against the tide on AI: he's hiring over 20,000 graduates this year and says AI tokenmaxxing is a 'vanity metric'
By Preston ForeJune 1, 2026
1 day ago
'Where we are today is frightening': a Pulitzer-winning historian sees a doomsday scenario involving China and the national debt
Banking
'Where we are today is frightening': a Pulitzer-winning historian sees a doomsday scenario involving China and the national debt
By Nick LichtenbergJune 2, 2026
18 hours ago
Current price of oil as of June 1, 2026
Personal Finance
Current price of oil as of June 1, 2026
By Joseph HostetlerJune 1, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.