A federal judge Tuesday sentenced the former head of the nation's largest public pension fund to 4½ years in prison in a case in which the pension fund CEO acknowledged accepting more than $200,000 in bribes and trying to steer investments to help an associate.
Senior U.S. District Court Judge Charles Breyer called the case against Federico Buenrostro, the former chief executive of the California Public Employees' Retirement System, "seriously troubling" and said it reflected a "spectacular breach of trust for the most venal of purposes, which is self-enrichment."
Buenrostro pleaded guilty to fraud and bribery charges two years ago, saying he started taking bribes around 2005 to try to get CalPERS staff members to make investment decisions that helped Alfred Villalobos, an investment manager and former board member of the pension fund.
Buenrostro said he accepted cash, a trip around the world and allowed Villalobos to pay for his wedding in Lake Tahoe, California. Villalobos killed himself last year, weeks before he was set to go on trial. He had pleaded not guilty to fraud charges.
"I take full responsibility and accept the consequences of the actions I took," Buenrostro, in a blue jail outfit and leg irons, told the judge before he was sentenced. "I'm humiliated, embarrassed and deeply ashamed of my actions."