Assemblyman Carlo DeMaio is calling for a Federal Criminal review of the $3B losses in CalPERS Green Deal, He sent the following letter to Attorney General.
RE: Requesting Federal Investigation into Potential Wrongdoing and Fiduciary Negligence in CalPERS “Green Energy & Technology Fund” Investment Loss
Dear Attorney General Bondi and US Attormeys for California:
It has come to my attention that the California Public Employees’ Retirement System (CalPERS) recently reported catastrophic losses-approximately 71 percent of a $468 million investmentin a so-called “Clean Energy & Technology Fund.” According to public reports, the value of this investment has plummeted to roughly $138 million, while CalPERS officials have refused to disclose the specific transactions or decision-makers responsible. When accounting for missed investment returms and expected actuarial gains, this dubious transaction alone has resulted in California taxpayers losing over $3 billion in funds. This enormous loss raises serious concerns about potential mismanagement, negligence, and breach of fiduciary duty by those entrusted with safeguarding the retirement assets of millions of
California public-employees.
Governor Gavin Newsom and his administration have repeatedly directed CalPERS to pursuе politically motivated “green” investment strategies-prioritizing ideological outcomes over financial prudence. It is imperative that federal authorities determine whether such decisions were made in accordance with fiduciary obligations under federal law.
While this letter does not provide an exhaustive list of every potential violation, the following
questions merit immediate review:
Did any individual that participated in the approval or oversight of this transaction have a
conflict of interest that inappropriately influenced their decision to invest in this fund or
maintain this investment?
Has CalPERS met its statutory duty to act “solely in the interest of participants and
beneficiaries” as required by fiduciary standards nationally as well as the California
Constitution (Article XVI, Section 17)?
Did any individual within the Newsom administration improperly influence or encourage
CalPERS to increase exposure to climate-focused or ESG funds despite known financial
risks?
Did CalPERS staff or board members ignore warnings from independent analysts regarding
the volatility or risk concentration of the Clean Energy & Technology Fund?
Were adequate due-diligence reviews, performance audits, and fiduciary-risk assessments
completed and documented prior to the investment?
Were material losses or conflicts of interest timely disclosed to the CalPERS Board, the
Legislature, and the public as required?
These questions go to the heart of transparency and accountability in the management of billions
of dollars belonging to Califomia’s retirees and taxpayers. If politically motivated investment
decisions have undermined the fund’s solvency or violated fiduciary standards, those responsible
must be held accountable.
To that end, I respectfully request that your offices initiate an investigation into the CalPERS
Clean Energy & Technology Fund losses and issue formal findings on:
Whether any laws governing fiduciary duty, disclosure, or political influence in investment
decisions were violated; and
What corrective or disciplinary actions may be warranted to protect beneficiaries and
taxpayers from further harm?
Californians deserve to know whether their retirement dollars were sacrificed to advance a
political agenda rather than secure their financial future. Please feel free to share your findings
publicly so that state employees, retirees, and taxpayers can better understand how nearly half a
billion dollars vanished-and how over $3 billion in missed growth could have safeguarded their
pensions instead.
Thank you for your consideration of this request.
Sincerely,
CarlDe Mais Carl DeMaio
Assemblyman, 75th District
