The trial of former CalPERS board member Alfred Villalobos was delayed on Friday by U.S. District Judge Charles Breyer to Feb. 23 to give the defense more time to respond to an expanded government corruption case.
Mr. Villalobos' trial originally was scheduled to start in the fall, but on Thursday a federal grand jury filed an expanded indictment against him that included a new count of conspiracy to commit bribery.
The new charge comes after Mr. Villalobos' co-defendant, former CalPERS CEO Federico R. Buenrostro, pleaded guilty last month to corruption charges. In written disclosures made as part of the plea, Mr. Buenrostro said Mr. Villalobos, acting as a placement agent, gave him $200,000 in cash bribes as part of a scheme to help Mr. Villalobos' clients win contracts.
Mr. Villalobos was not at Friday's status hearing in U.S. District Court in San Francisco. His attorney, Bruce Funk, said in an interview that his client will plead not guilty to the new charge.
Mr. Villalobos pleaded not guilty to charges last year that he committed mail and wire fraud in connection with the government's contention that both he and Mr. Buenrostro had falsified documents ostensibly from the $298.4 billion California Public Employees' Retirement System, Sacramento, to ensure Mr. Villalobos received $14 million in fees from private equity giant Apollo Global Management. The fees were paid to Mr. Villalobos by Apollo for his help in securing investment contracts with CalPERS in 2007 and 2008.
Mr. Buenrostro as part of his plea agreement has agreed to testify against Mr. Villalobos.
Mr. Villalobos was a CalPERS board member from 1993 to 1995 before becoming a placement agent, helping investment clients win contracts with CalPERS and other pension systems.
The new charge of conspiracy to commit bribery won't change the maximum sentence possible (30 years in prison) if Mr. Villalobos is convicted.
