Calpers Deals Part of Probe by Justice Into Pay-Play

The Wall Street Journal reports:

Federal criminal investigators are looking into possible wrongdoing involving investment transactions of public pension funds including Calpers, according to people familiar with the matter.

Justice Department investigators in Los Angeles have been looking at whether potentially illegal payments were made to influence decisions on where to invest public pension-fund money, these people said. Among the matters being examined, they said, are investments made by the California Public Employees' Retirement System, the nation's biggest public pension fund by assets.

The Calpers-related inquiries are focused on a small number of individuals, said one of the people. While the investments under scrutiny totaled "many millions" of dollars, the person said, the amount is a fraction of Calpers's overall assets of about $200 billion.

A Calpers spokeswoman said she isn't aware of any federal criminal investigations looking at the fund's investments.
The criminal scrutiny by federal authorities shows that the scope of pay-to-play probes is broader than previously known.

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