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CalPERS official mentioned in bribery suit quits


SACRAMENTO — A suspended official with the nation's largest public pension fund has quit after being linked to an alleged bribery scandal involving a former board member.

An attorney for senior investment officer Leon Shahinian says he left Thursday for a private sector job.

Shahinian has been on paid leave since May, when his name surfaced in a state lawsuit.

Former board member Alfred Villalobos and former CEO Fred Buenrostro are accused by Attorney General Jerry Brown of setting up a system of kickbacks ensuring that outside firms won a piece of the fund's lucrative portfolio.

Shahinian is not accused in the case, but Brown alleges Villalobos took Shahinian on an all-expenses-paid trip to New York. Shahinian later persuaded the board to invest $600 million with Villalobos' client.

Attorney Malcolm Segal says Shahinian followed board policy and did nothing wrong.

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Information from: The Sacramento Bee

Copyright 2010 The Associated Press.