The Feds Are Suing The Former CEO of CALPERS Over An Alleged $20 Million Fraud

We are truly shocked - Lucy Riccardo shocked.  The SEC is alleging that the former CalPERS (California Public Employees' Retirement System) CEO Federico R. Buenrostro and his friend Alfred J.R. Villalobos hustled private equity firm Apollo Global management out of $20 million.

Apollo is run by industry heavyweights Marc Rowan, Leon Black, and Joshua Harris. Awkward.

This story is also awkward because, according to the SEC release, the scheme doesn't sound that complicated.

According to the SEC's complaint, CalPERS CEO Buenrostro falsified placement agent fee documents that said Villalobos' firm, ARVCO Capital Research LLC (which later became ARVCO Financial Ventures LLC), was going to help Apollo raise private financing for CalPERS.  When Apollo got the documents, they paid ARVCO thinking the deal was legit. All told, the SEC says ARVCO collected $20 million in fees from forged documents….

Got that?  Check out the whole story at http://www.businessinsider.com/a-state-pension-fund-allegedly-duped-on-of-the-most-powerful-private-equity-firms-in-the-world-out-of-20-million-in-fees-2012-4