CalPERS investment officer linked to bribery scandal resigns
Thursday, Aug. 26, 2010, Sacramento Bee (Excerpt)A senior CalPERS investment officer resigned today after being linked to the pension fund's bribery scandal, The Bee has learned.
Leon Shahinian has been on paid administrative leave since May, when his name surfaced in Attorney General Jerry Brown's lawsuit against former CalPERS board member Alfred Villalobos and former Chief Executive Fred Buenrostro. Although Shahinian isn't a defendant, the lawsuit said Villalobos bribed Shahinian with an all-expenses-paid junket to New York in 2007.
Weeks later, without disclosing the trip, Shahinian persuaded CalPERS to invest $600 million with one of Villalobos' clients, Apollo Global Management. The deal generated a $13 million commission for Villalobos.
Shahinian's resignation was confirmed by Sacramento lawyer Malcolm Segal, who represented Shahinian when he testified last month in connection with Villalobos' bankruptcy case.
The full article is at http://www.sacbee.com/2010/08/26/2985696/calpers-investment-officer-linked.html
UPDATE: More scandal at http://www.sacbee.com/2010/08/31/2994102/former-calpers-board-member-refuses.html