CalPERS Confirms Criminal Placement Agent Probe

Law360, New York (February 16, 2011, 6:17 PM EST) -- The California Public Employees’ Retirement System, the largest public pension fund in the nation, has acknowledged that federal prosecutors are conducting a criminal investigation into whether placement agents collected illegal fees to influence the fund's investment decisions.

In a written presentation to its full board Wednesday, CalPERS noted that it, along with special counsel from Steptoe & Johnson LLP, had produced "millions of pages of materials" in ongoing probes being conducted by the U.S. Securities and Exchange Commission and state and federal prosecutors.

While a CalPERS...
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