Tuesday, November 24, 2009


If "Big Brother" Obama wants to have a civil trial then let it be in Washington DC.

VJ Machiavelli

Monday, November 23, 2009


New Mexico council releases subpoenas

Pensions & Investments - Arleen Jacobius - ‎Nov 18, 2009‎

... marketing firms Ajax Investments, Crosscore Management and SDN Advisors and Marc Correra, the son of Anthony Correra, who worked on New Mexico Gov. ...

SEC subpoenaed former NM state investment officer

The Associated Press - Barry Massey - ‎Nov 18, 2009‎

Marc Correra shared in nearly $22 million in fees for helping money management firms win investments with the council and a state educational pension fund, ...

Gary Bland testified before Securities and Exchange Commission

The New Mexico Independent - Trip Jennings - ‎Nov 17, 2009‎

No one in law enforcement has accused either Correra of wrongdoing, and Marc Correra's attorneys in the past have said he worked hard to earn the fees he ...


From the Hamptons to New Mexico, the pensiongate scandal keeps making news.

VJ Machiavelli

Wednesday, November 11, 2009


Powerful clients boost ex-board member's career hawking investments to calpers

Buzz up!

By Dale Kasler


Published: Wednesday, Nov. 11, 2009 - 12:00 am | Page 1A

Last Modified: Wednesday, Nov. 11, 2009 - 6:02 am

In his long and controversial career pitching investment deals to CalPERS, former board member Alfred J. Villalobos repeatedly has spun gold from a web of important business associates.

Surviving a personal bankruptcy that cost him the job of deputy mayor of Los Angeles, Villalobos befriended top people at CalPERS after leaving the board, and built an all-star client roster.

One client is Gerald Parsky, a California power broker who's still paying Villalobos millions in commissions.

Another is billionaire Leon Black, who emerged from the junk-bond scandals of the 1980s to create New York investment firm Apollo Management.

Two brothers, Antony and Richard Ressler, also have paid Villalobos to obtain deals with the California Public Employees' Retirement System. Black is their brother-in-law.

Villalobos' orbit includes Christopher Bower, a La Jolla financier who's been an adviser to CalPERS since 1990 and manages more than $600 million for the pension fund.

Bower's firm, Pacific Corporate Group Holdings, advised CalPERS when the fund made its first investment with a Villalobos client, a $100 million deal in 1997. Despite its close relationship to CalPERS as an official adviser, the La Jolla firm nonetheless hired Villalobos two years ago to ask CalPERS and other investors to buy Pacific Corporate's stock. CalPERS declined, and Villalobos earned no fees.

That was a rare miss for Villalobos. From his perch in Stateline, Nev., at Lake Tahoe, Villalobos has earned at least $60 million in fees off CalPERS investments since leaving the board in 1995, according to documents released by the pension fund.

The disclosure of such hefty commissions paid to a former board member has tarnished CalPERS' reputation, said Edward Siedle of Benchmark Financial Services, a Florida consulting firm specializing in pension fraud.

"They're supposedly the gold standard of pension governance," he said.

Middlemen's role reviewed

Last month CalPERS hired a law firm to run a "special review" of Villalobos and other placement agents – the middlemen hired by investment firms to pitch deals to public pension funds.

CalPERS isn't the only entity taking a hard look at placement agents. The Securities and Exchange Commission, California Attorney General Jerry Brown and New York Attorney General Andrew Cuomo are all conducting investigations into the industry.

Cuomo already has issued indictments, charging New York political operative Hank Morris in a kickback scheme involving that state's public pension fund.

Ripples from the indictment have spread West. In July, without admitting wrongdoing, Pacific Corporate – the CalPERS adviser and one-time Villalobos client – repaid the New York pension fund $2.1 million to resolve a probe by Cuomo.

Court records say the firm won a $750 million investment from the New York fund after one of its executives secretly agreed to give Morris a slice of the deal. The executive, who wasn't identified and has left Pacific Corporate, didn't tell his colleagues about Morris' role.

Pacific Corporate said in July it agreed to the settlement with Cuomo "to make the public whole for the improper actions of a former executive."

Spokeswoman Pat Macht said CalPERS "is troubled by" Pacific Corporate's activities in New York. She wouldn't elaborate on the fund's concerns about its adviser and fund manager.



EDITORIAL: Board's ties to middlemen raise questions

Fresno Bee (subscription) - ‎Nov 10, 2009‎

... fees paid by external managers to placement agents after learning that one agent, former CalPERS trustee Alfred Villalobos, earned $60 million in fees. ...

calpers' image takes a hit

Los Angeles Times - ‎Nov 9, 2009‎

One well-known middleman, former Los Angeles Deputy Mayor Alfred JR Villalobos, has raked in at least $70 million in fees over the last decade from ...

Editorial: CalPERS' ties to middleman raise suspicions

Sacramento Bee - ‎Nov 8, 2009‎

... agents," after learning that one of those agents, former CalPERS board member Alfred Villalobos, earned $60 million in fees over the last decade. ...

Legislation would rein in pension fund 'placement agents,' sources say

TMCnet - ‎Nov 7, 2009‎

The legislation follows stories in The Bee this week detailing the activities of placement agent Alfred Villalobos, who has earned at least $60 million over ...

CalPERS to consider requiring placement agents to register as lobbyists

Los Angeles Times - Marc Lifsher - ‎Nov 6, 2009‎

The discussion comes as CalPERS conducts an internal investigation of the fees paid to Alfred JR Villalobos, a Stateline, Nev.-based go-between who served ...

Ex-CEO at CalPERS accepted favor from placement firm boss

Sacramento Bee - Andrew McIntosh, Dale Kasler - ‎Nov 6, 2009‎

... for a place to get married, he accepted an offer to hold the wedding at the home of good friend and former CalPERS board member Alfred J. Villalobos. ...

California May Limit Placement Agents

Wall Street Journal - Craig Karmin - ‎Nov 6, 2009‎

California's state controller and treasurer are drafting legislation that could curb pay for financial middlemen, whose fees have sparked an ...

CalPERS trustee shows check payment for Dubai trip

Sacramento Bee - Andrew McIntosh - ‎Nov 6, 2009‎

... explanation of how he paid for his Dubai trip a day after telling the newspaper he had repaid Nevada-based placement agent Alfred Villalobos in cash. ...

CalPERS board chief urges colleagues to steer clear of investment go-betweens

Los Angeles Times - Marc Lifsher, Evan Halper - ‎Nov 5, 2009‎

The intermediary was Nevada businessman Alfred JR Villalobos, a former CalPERS board member and onetime Los Angeles deputy mayor. ...

$65 million in fees paid to market funds to CalPERS

Pensions & Investments - Arleen Jacobius - ‎Nov 5, 2009‎

Both hired Alfred Villalobos, a former CalPERS board member, his children and his placement agent firm, ARVCO Capital Research, to market funds to the ...

Who paid for Dubai trip by CalPERS board member?

Sacramento Bee - Andrew McIntosh, Dale Kasler - ‎Nov 5, 2009‎

... with pension fund placement agent Alfred Villalobos, who paid for the journey on a personal credit card, according to documents obtained by The Bee. ...

LA firm kept paying Villalobos long after firing him

Fresno Bee - Dale Kasler - ‎Nov 5, 2009‎

Even after getting fired when his presence roused controversy, former CalPERS board member Alfred Villalobos earned $9.6 ...

CalPERS Paid $65M To Villalobos In Fees

Emii.com - ‎Nov 4, 2009‎

Ex-CalPERS board member, Al Villalobos, received about $15 million more for marketing money managers to the pension fund than previously disclosed, ...

CalPERS discloses more fees paid to Alfred Villalobos

Los Angeles Times - Marc Lifsher - ‎Nov 4, 2009‎

Alfred Villalobos, shown in a 1993 photo, has denied wrongdoing and said he is cooperating with inquiries by CalPERS investigators. ...

Placement firm boss earned millions after CalPERS investment

TMCnet - ‎Nov 4, 2009‎

Nov 04, 2009 (The Sacramento Bee - McClatchy-Tribune Information Services via COMTEX) -- Alfred Villalobos, the controversial businessman at the heart of a ...

Firm Got $65 Million Marketing to Calpers

Wall Street Journal - Craig Karmin, Peter Lattman - ‎Nov 4, 2009‎

Arvco Financial Ventures LLC, headed by former California Public Employees' Retirement System board member Al Villalobos, reaped more than $65 million in ...

CIM and Calpers

LA Observed (blog) - ‎Nov 4, 2009‎

The LA-based developer paid investment middleman Alfred Villalobos almost $10 million in fees to be hooked up with California's big pension fund, ...

Selected recent California newspaper editorials

San Jose Mercury News - ‎Nov 4, 2009‎

... considering the Los Angeles Times that very morning reported further on the self-enrichment of political operative Alfred JR Villalobos. ...

Ex-CalPERS Member Faces Placement Review

Emii.com - ‎Nov 3, 2009‎

Former CalPERS board member, Alfred Villalobos, is facing a “special review” under an ongoing investigation of placement agents, Sacramento Bee reports. ...

The case for public pensions

Long Beach Press-Telegram - ‎Nov 3, 2009‎

... timing was perfect, considering that the LA Times that very morning reported further on the self-enrichment of political operative Alfred JR Villalobos. ...

He earned $53 million opening doors to CalPERS money

Los Angeles Times - ‎Nov 3, 2009‎

Alfred Villalobos has spent years helping Wall Street players gain access to the California Public Employees' Retirement System's vast wealth. ...

Pension Fund̢۪s Inside Deals Raise Stench

Korea Times - Dan Walters - ‎Oct 28, 2009‎

Apollo had an especially well-connected middleman, Alfred Villalobos, a former CalPERS board member who set up his shop, called Arvco, after leaving the ...

CalPERS reviewing tie with Apollo Management after steep losses

Los Angeles Times - Marc Lifsher - ‎Oct 22, 2009‎

... "has nothing to do" with a controversy that emerged last week when CalPERS disclosed that Apollo had paid about $46 million in fees to Alfred Villalobos ...

Who's New: Welcome the newest members of our town

Tracy Press - ‎Oct 20, 2009‎

Aliyah Alizaj Mendez was born to Celina Villalobos and Jorge Mendez of Tracy on Aug. 6, 2009, at Sutter Tracy Community Hospital. • Bryce James Shipman was ...

California accuses bank of raiding pension funds

Los Angeles Times - Marc Lifsher, Dan Fost - ‎Oct 20, 2009‎

The fund also is investigating about $50 million in fees paid to a placement firm, headed by former board member Alfred Villalobos, that directed hundreds ...


Former SEC Chairman Levitt Calls for Probe of Public Pensions

Bloomberg - Martin Z. Braun - ‎Oct 15, 2009‎

... managers pay to middlemen after disclosures from investment managers that former board member Alfred Villalobos was paid $50 million over five years. ...


"Pensiongate" bigger than "Watergate" and it keeps on growing everyday.

VJ Machiavelli

Monday, November 2, 2009


McCabe Agrees to Settle Cuomo Probe, Lawyer Says

Bloomberg - Karen Freifeld - ‎

Nov. 2 (Bloomberg) -- Kevin McCabe, who acted as a placement agent for a private equity firm that received $800 million in New York pension fund investments, agreed to pay $535,000 to end a probe of his role by state Attorney General Andrew Cuomo, according to his attorney.

McCabe, once chief of staff to former New York City Council speaker Peter Vallone Sr., would be the latest person ensnared in Cuomo’s investigation of corruption at the New York state Retirement Fund to cooperate with Cuomo and come to terms.

“McCabe has chosen to settle with the Attorney General’s office to clear his name,” said Michael Dowd, McCabe’s lawyer. “He agreed to pay back all the money he received on the theory that, if it had any taint to it, even if it didn’t involve him, it would damage his reputation.”

Richard Bamberger, a Cuomo spokesman, declined comment earlier today. Later, he said, “there is no deal.” Dowd said the agreement hadn’t been signed.

McCabe acted as a placement agent for GKM Newport Management LLC, a Los Angeles-based firm that had $13 million under management when the state first invested, according to a U.S. Securities and Exchange Commission complaint.

McCabe co-owned Purpose LLC with Henry “Hank” Morris, a former adviser to ex-New York state Comptroller Alan Hevesi, Dowd said.

Morris was charged in March in a 123-count indictment in connection with an alleged kickback scheme at the state pension fund. The GKM investment is among the transactions in the indictment and a related SEC complaint at the center of a probe by Cuomo and the SEC of money managers and placement agents who used ties to public officials and kickbacks to buy and sell access to the $2 trillion in U.S. public pension systems.

Not-Guilty Plea

Morris has pleaded not guilty. William Schwartz, his attorney, didn’t immediately respond to a call for comment.

GKM didn’t return a call for comment.

In 2004, according to the SEC complaint, Morris and David Loglisci, New York state’s former deputy comptroller who also has been indicted, arranged for investment firms to pay sham finder fees to political allies in exchange for retirement fund investments. The complaint cites the GKM deal as an example.

Loglisci and Morris “entered into an arrangement” with a managing director of GKM to hire a political fundraiser, identified only as “Individual B” as its placement agent in exchange for receiving an investment, the complaint says. GKM agreed to retain Individual B, the complaint says, despite the fact that the individual “had no relevant experience and had never acted as a finder.”

‘Substantial Fee’

The complaint says Loglisci made it clear to GKM’s managing director the fund wouldn’t invest with GKM unless the fundraiser was paid “a substantial fee.”

The complaint cites an e-mail the GKM managing director sent to one of his partners stating Loglisci “made it clear to me that this deal is happening for us for one reason and for one reason only and that is their relationship” with Individual B.

Dowd said that, although McCabe appears to be Individual B, the SEC got its facts wrong. “He is not a fundraiser and the communication they speak of between Loglisci” and the GKM managing director “doesn’t make any sense.” He said McCabe was already working for GKM in 2003, before the purported Loglisci communication.

Loglisci has pleaded not guilty and denied wrongdoing. Irving Seidman, his attorney, declined comment.



As I have said many times Pensiongate is bigger than Watergate, and with a cast of who's who in NY Democratic politics.

VJ Machiavelli

P.s I believe McCabe has a Mario Cuomo Connection