$20 Million Latest Fraud by Union Chief

Running the world’s largest public union from 2002 to 2008 evidently made Fred Buenrostro feel invulnerable. He committed so many frauds as CEO of the California Public Employees’ Retirement System (CalPERS) they are still being discovered years his first scandal came to light in 2009. Last month the Securities and Exchange Commission filed fraud charges against

“In this case, according to the SEC, Buenrostro was involved in forging letters enabling one of those friends, Alfred Villalobos, to obtain $20 million from a New York private equity firm, Apollo Capital Management,” according to Andrew S. Ross in the San Francisco Chronicle. The California attorney general had previously filed other charges and the U.S. Justice Department continues an investigation. When Buenrostro was fired for his schemes, former aid Villalobos set him up in a $300,000 job and a free condo.

Buenrostro called himself “a placement agent” in addition to being the union CEO, as a means to cash in on business done with CalPERS. He had “his wedding allegedly paid for by an associate who did business with the fund (and got) free chips to play with at a Las Vegas casino, according to authorities, and allegedly arranging deals for ‘friends of Fred,’ even if they weren’t in the fund’s interest.” Ross reported.

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