Alfred Villalobos and Federico Buenrostro and CalPers

I see that Alfred and Federico are in the news again. Mr. Villalobos had been a board member for CalPERS, the California State Pension. Here is a link to the L.A. Times Article.

Villalobos, Buenrostro targets of CalPERS fraud enforcement action

Whenever we find Mr. Villalobos, we should remember that he was a Deputy Mayor for the City of Los Angeles also. We also find this interesting article from Globes Israel's Business Arena regarding allegations made by the L.A. Times that Mr. Villalobos had been paid $16 million by CIM Group to get investments from CalPERS. Why is there a revolving door between CalPERS and Lacers where they exchange board members with ties to placement agents?

The Globes article - Delek Real Estate suitor CIM cited in corruption scandal

If you read the whole article you will discover that Elliot Broidy (the guy who plead guilty in New York's pension scandal) was in communication with CIM group. If all of these people are connected then why are they not all being investigated and charged?

Federico Buenrostro Jr.was the former CEO for CalPERS who left to work for Villalobos. Huh? Look, the Pimpernel works for the government, that should be obvious. I would work for one or two companies that I dealt with during my career; but, I would never represent them in dealing with my previous employer nor would I give them advice on how to deal with my former employer. I hired someone once, they had worked for another organization within our organization. I told them that I would never ask them for any information that was privileged when they obtained it.

I will probably not work in private industry when I retire. Odds are I am going to be more and more involved in the church; but the question is still valid. When should people be prohibited from working for one company in a particular industry and then taking a job with a competitor in the same industry? I think we can certainly say that if you are specifically hired to give up all of the privileged information that you have learned in exchange for money.

Have a great week.