Former CalPERS CEO Federico Buenrostro has been sentenced to 41/2 years in prison for accepting more than $200,000 in bribes while serving as the head of the nation’s largest pension fund. Senior U.S. District Judge Charles Breyer handed down the punishment in San Francisco Wednesday, calling Buenrostro’s actions a “spectacular breach of trust” committed for the sole purpose of self-enrichment.
The former CEO’s sentencing comes two years after he pleaded guilty to fraud and bribery charges. He admits to accepting $250,000 in kickbacks from former CalPERS board member Alfred Villalobos who killed himself last year. Among the goodies Buenrostro received was an all-expense-paid wedding for him and his sweetheart. Villalobos later footed the bill for their divorce as well. Surprised?
Buenrostro expressed remorse before sentencing and pleaded for mercy from the court.
“I’m humiliated, embarrassed and deeply ashamed of my actions,” he said.
But the former top exec still seems to find trouble everywhere he turns. Just weeks ago, he was arrested for allegedly assaulting a former girlfriend. It was the second time he’d been arrested this year.
Prosecutor Timothy Lucey called the bribery case one of the most serious cases of public corruption the state has ever seen. It prompted a series of internal reforms after the scandal was discovered in 2009, including stricter controls on employee travel and gifts.
Buenrostro served as the head of CalPERS from 2002 to 2008. His successor, Anne Stausboll, said she was relieved the ordeal was finally over, calling it the end of a painful chapter for the agency.
Read more about Buenrostro’s sentencing here.