California Fraud Suit to Target Major Bank

October 20, 2009

California Attorney General Jerry Brown’s office said Monday it would unveil a lawsuit against a major bank for committing fraud against the state’s Calpers and Calstrs retirement systems, two of the nation’s largest pension funds.

The lawsuit will seek to recover nearly $200 million in illegal overcharges and penalties, Brown’s office said in a statement.

A spokesman for Brown said details of the lawsuit would be disclosed Tuesday morning.

Representatives of Calpers, the California Public Employees’ Retirement System, and Calstrs, the California State Teachers’ Retirement System, were not immediately available for comment.

(Reporting by Jim Christie; editing by Carol Bishopric)

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