The State Worker

From the notebook: What CalPERS officials said about restricted trades now under SEC review

In case your missed it, The Bee reported this weekend that federal officials are looking into two stock purchases that CalPERS made in mid March in violation of its own policy to avoid insider trades. Although a subsequent internal review determined that the trades were accidental and weren’t really insider trades, sources say that the Securities and Exchange Commission has been conducting a low-level, informal inquiry.

Neither the SEC nor CalPERS has publicly commented on the federal review.

CalPERS did refer to the trades on page 13 of this monthly investment report. During the fund’s May 13, 2013, board meeting CalPERS’ board member J.J. Jelincic noted the “policy violations” entries and asked Carol Moody about them. Moody is the fund’s senior portfolio manager responsible for, among other things, developing and monitoring investment-management compliance.

A brief discussion of the trades and measures to prevent similar transactions ensued. You can view it at about the 14:14 mark of this archived video:

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