LOS ANGELES (AP) — Money managers have paid more than $180 million to middlemen as a way to gain investment business from the nation’s largest public pension fund, and at least some of those costs likely ended up being paid by the fund itself through inflated fees.

That’s among the findings in a 56-page report to be presented Tuesday to the board of the California Public Employees’ Retirement System. The review, released to reporters late Monday, is part of the fund’s investigation into alleged wrongdoing by former officials.

A law firm is examining the use of “placement agents,” the middlemen hired by money managers to attract cash from big institutional investors. The state has sued a former chief executive and a placement agent who once was a CalPERS board member, alleging fraud and kickbacks.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (3)
  1. Dave says:

    There is corruption from top to bottom. Corruption that we do not or will never know about. Most get away with this because it is all about the dollar. People live for today and do not care about the future. These dirty politicians and union mob bosses figure we only have a little time on this earth so why not get the most out of it. By the time they get caught they have already lived a life of luxury. Plus they will not go to jail because the politicians who take over will do the same thing so they do not want to expose what the scam is.

    1. Trying To Put The Bad People Away says:

      Dave – I couldn’t have said it better myself.

    2. Karen says:

      Dave – you are so right. Arnie lessened the sentence of that murderer wtihout any regard to the family. Tell Jerry Brown, NO MORE TAXES. We don’t even need to vote.

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