California Enacts Emergency Legislation to Address Pay-to-Play and Public Pension Funds

Recent news stories have featured allegations of "pay-to-play" arrangements at public employee pension funds. A pay-to-play arrangement involves directing some benefit to a pension fund official in order to obtain fund business. A direct bribe is the most obvious form of pay-to-play. However, pay-to-play arrangements are often indirect or disguised. Often they are funneled through intermediaries known as "placement agents". Investment advisers and others seeking fund contracts or investments hire placement agents to help secure those deals. Not surprisingly, pay-to-play arrangements raise serious questions about whether pension fund officials are making decisions in the public interest or in their own self interest.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Published In: Business Organization Updates, General Business Updates, Elections & Politics Updates, Labor & Employment Updates, Securities Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »