RENO (CN) - The former CEO of the California Public Employees' Retirement System who defrauded investors agreed to make full restitution, a federal judge ordered.
The Securities and Exchange Commission sued former CalPERS CEO Federico Buenrostro and his friend, Alfred J.R. Villalobos, in 2012, along with Villalobos' companies, ARVCO Capital Research and ARVCO Financial Ventures.
Regulators said Buenrostro and Villalobos "fabricated documents given to New-York based private equity firm Apollo Global Management."
Buenrostro and Villalobos cost Apollo more than $20 million by bypassing established CalPERS' procedures and leading Apollo to believe it was paying placement agent fees, according to the SEC complaint.
A federal judge signed a judgment against Buenrostro on Tueesday, noting that has "acknowledged that his conduct violated the federal securities law" and will be required to "pay disgorgement of ill-gotten gains."
Buenrostro pleaded guilty to one count of conspiracy in July and is awaiting his sentence. Those proceedings will help determine the restitution Buenrostro owes in the SEC action.
Villalobos reportedly killed himself in January 2015 in the face of an indictment accusing him of conspiring to commit bribery to defraud the United States, falsely scheming against the United States and conspiring to commit mail and wire fraud.
The defendants could not be reached for comment.
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