Placement Agent in CalPERS Bribery Case Pleads Not Guilty

Fred Buenrostro
Ex-CalPERS Chief Executive Fred Buenrostro, who is cooperating with authorities in the CalPERS bribery case.

Alfred Villalobos, the former CalPERS board member and placement agent who allegedly bribed then-CalPERS Chief Executive Fred Buenrostro to the tune of $250,000, pleaded not guilty to bribery charges on Wednesday.

Buenrostro has already pled guilty to charges that he accepted the $250,000 bribe and falsified pension fund documents with Villalobos.

More from the Sacramento Bee:

Villalobos, appearing in U.S. District Court in San Francisco on Wednesday, denied charges that he bribed former CalPERS Chief Executive Fred Buenrostro to influence the pension fund’s investment decisions. Villalobos earned $50 million in commissions as a “placement agent” securing CalPERS investments for his private-equity clients.

His lawyer, Bruce Funk of San Jose, said the trial is scheduled for Feb. 23. Villalobos, 70, who lives in Reno, remains free on bond.

Villalobos had already pleaded innocent to charges that he and Buenrostro falsified pension fund documents to make sure Villalobos would get paid his commissions. The case took a dramatic turn in July, when Buenrostro pleaded guilty to much broader charges – that he had accepted $250,000 in bribes from Villalobos, along with the promise of a job and other favors.

In August, the government issued a new indictment against Villalobos, charging him with paying the bribes that Buenrostro admitted taking. Besides the cash bribes, Villalobos provided Buenrostro with “entertainment, travel, lodging, jewelry, casino chips and other benefits,” according to the indictment.

The government is continuing to charge him with falsifying documents, the allegation contained in the earlier indictment.

Villalobos has been charged with three felony counts in all. He faces up to 30 years in prison, the same as in the original indictment, if convicted on all charges.

Buenrostro, following his guilty plea to a single count of conspiracy, could get up to five years in prison at his sentencing in January. He is free on bond.

Buenrostro and Villalobos conspired to direct billions of dollars in CalPERS investments to a private equity firm called Apollo, for which Villalobos was working as a placement agent.