Three Sides of the Business.
One Long Paper Trail.
Jeffrey Baker worked across all three sides of institutional money management — retail, institutional, and public pension funds. He saw how the business was supposed to work. At CalPERS he also saw what happens when a CEO goes to prison, when a $12 million payment gets covered up, and when an institution protects itself instead of its members. At SDCERA he documented the same pattern at a smaller scale — and paid for it with his career. Every allegation in this book is backed by a document.
Federico Buenrostro was convicted and sentenced to eight years in federal prison for corruption. But the $12 million payment to Oak Associates — which Baker documents should never have been made — was never recovered. The institution covered it up rather than confront it.
Federal conviction · Payment records · CalPERS board documentsThe IPS set tracking error limits for the high yield program. The actual tracking error was over the limit from the beginning — but the board was shown a different figure, calculated using a formula that doesn't appear in the IPS anywhere. The US Treasury program didn't exist yet — it was created later and brought its own violations.
Board minutes · IPS · Tracking error analysisThe SDCERA board voted to invest in the Hoisington Duration Match product. Partridge funded the Hoisington Core-Plus product — the riskiest Hoisington product — without authorization. He admitted this under oath.
Board resolution · Sworn testimonyAt the March 2011 board meeting, Partridge received a performance bonus of $723,000. The board was told he had implemented the new Investment Policy Statement. He had not. The tracking error violations were active when the check was cut.
Board video · IPS · Bonus documentationAt the May 2011 board meeting — one day after Baker filed his whistleblower complaint — trustee Loretta Morris asked directly: "Can we safely say we are completely in compliance?" He answered yes. One month later he confirmed the violations himself.
Board video May 2011 · Board video June 2011Civil Service found him not a whistleblower. A federal court dismissed his case. A Qui Tam filed on behalf of 39,000 county employees was voted down unanimously — including by the trustee who encouraged Baker to file it. The institution investigated itself and found nothing wrong.
Civil Service findings · Court records · Qui Tam ruling