From PensionPulse:

Marc Lifsher and Stuart Pfeifer of the Los Angeles Times report, Scathing report alleges corruption at CalPERS:

In a scathing report, a former chief executive of the California public employee pension fund was accused of pressuring subordinates to invest billions of dollars of pension money with politically connected firms.

A 17-month investigation also found that Federico Buenrostro Jr. – along with former pension fund board members Charles Valdes and Kurato Shimada – strong-armed a benefits firm to pay more than $4 million in fees to consultant Alfred J.R. Villalobos, who later hired Buenrostro.

The report, prepared for the California Public Employees' Retirement System by Washington law firm Steptoe & Johnson, comes amid widening attacks on public employee pension funds in California, Wisconsin, Iowa, and other states for providing lavish benefits that cash-strapped governments can no longer afford.

The findings of insider dealings at CalPERS could provide fresh ammunition to...

Read full article...

More on California:

California city is about to lay off nearly half its workers

California in CRISIS: "We've been living in fantasy land"

Shocking figures show California gov't workers are making unbelievably high salaries