'Outrageous' Pension Double-Dipping Triggers Criminal Investigation Into California Cops

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SACRAMENTO, Calif. — A California Public Employees' Retirement System audit says three police chiefs and a police commander in a small community just outside of San Francisco defrauded the giant pension system for a decade, collecting retirement benefits while working full-time jobs.

The alleged fraud detailed by CalPERS includes two chiefs working in the Broadmoor police district after receiving disability payouts, covering-up full-time work in order to collect retirement benefits and in one of the chief's cases, returning to active duty, then becoming an annuitant again, to enhance benefits.

CalPERS said one pensioner, identified as former Police Chief David Parenti, increased his yearly pension retirement by nearly $60,000 a year, going from $93,000 a year to $152,292 a year by coming out of retirement, working for 13 months and then retiring again.

But the pension plan said Parenti was never actually retired. He continued to draw more than $6,000 in salary per two week-pay period in addition to the pension benefits.

He also received a $100,000 disability benefit for unspecified injuries and another approximate $100,000 payment that couldn't be explained.

Parenti and the three other former Broadmoor police officials can be forced to pay back retirement benefits they collected while working. They could also face criminal charges.

The San Mateo County District Attorney's Office opened a criminal investigation into the former chiefs after CalPERS released its audit, District Attorney Stephen Wagstaffe said. It focuses on Parenti and a second former chief, Greg Love.

Wagstaffe said the alleged behavior by the police chiefs seems "outrageous" and said the audit raises questions as to whether the small police district that covers an unincorporated half-mile area of San Mateo County of 4,000 residents should be eliminated.

His office already prosecuted a former Broadmoor police chief earlier this year.

Michael Connolly was one of volunteer Broadmoor police commissioners who oversaw the police department. He was charged with misdemeanor conflict-of-interest changes after voting in March 2019 to install himself as Broadmoor police chief and approving the police district's budget, which included his salary and a pay increase.

Connolly, a retired San Francisco Police Department deputy chief, entered a plea deal in August that required him to pay a $235 fine and prohibits him from holding public office for four years.

CallPERS did not name any of the top police brass cited in its Dec. 9 report but Wagstaffe confirmed their identities.

Parenti could not be reached for comment and Love did not respond to requests for comment.

The Broadmoor Police Protection District is an anomaly in the state of California. It has less than a dozen police officers and taxes its 4,000 residents directly to fund its budget. It is surrounded by Daly City on all sides. The audit of the small police department examined records from 2011 to 2021.

The audit shows a succession of top police officials misrepresenting their hours, gaming the system to make it appear they were complying a state law that limits how much retired civil servants can work for government agencies while collecting CalPERS benefits.

CalPERS General Counsel Matt Jacob in a statement blamed the three Broadmoor' volunteer police commissioners who had oversight of the police department over the years for not taking action to stop the illegal activities. None of the city's current three commissioners responded to requests for comment.

"Former top officials of the Broadmoor Police Protection District defrauded CalPERS by illegally employing several police officials in violation of California retirement law," he said. "CalPERS will not tolerate this kind of abuse and will seek appropriate remedies, including restitution."

The police district in a written response to CalPERS said it generally agreed with the pension system's findings concerning the former top police officials.

"To our knowledge, it seems that certain previous employees intentionally obfuscated and abused reporting processes in an attempt to circumvent CalPERS retired annuitant rules, receive additional compensation and inflate their own compensation and CalPERS pension allowance, said the response from the law firm of Best Best & Krieger representing the district.

In its response, the police district said it would do everything in its power to cooperate. It noted however, that in Parenti's case, the former chief had taken the payroll records with him upon his termination.

"The District intends to fully cooperate with outside law enforcement, CalPERS, and the District's lawyers to seek restitution from those responsible," said a separate press release posted on the Broadmoor Police District website, signed by interim-Chief Ronald Banta.

Banta resigned last week.

CalPERS said annuitant 1, Parenti, worked at the Broadmoor Police District from May 2006 to July 2020, starting as a reserve police officer. He then became a lieutenant, commander, chief of police and inspector.



As commander from July 2007 to November 2012, payroll records show that Parenti was paid $144 an hour even though the maximum compensation for that position was $60 an hour, the audit said.

Parenti retired from the department after serving as commander but then became chief of police in December 2012. The report said that he rescinded his retirement in December 2012 for a 13-month period.

After the 13-months were up in December 2013, the CalPERS audit said the chief went back on retirement.

But he continued to work as chief, making $173.61 an hour or $6,250 per two-week pay period, the audit said.

Parenti's retirement benefit, based on his reinstatement period, went up close to $60,000, giving him $152,292 a year. CalPERS said it was unable to get an explanation of why Parenti retired again, but noticed the extra year of active service enabled him to increase his pension.

Connolly, the indicted chief, replaced Parenti in June 2019. Parenti moved to a lower position in the police department. He was fired by Connolly in July, 2020.

CalPERS records show Parenti today receives a monthly pension of $14,128,94 a month.

Annuitant 2, former chief Love, had already retired as Broadmoor police chief but continued to work in the position from May 2009 to December 2012. Love had worked in Broadmoor in various positions since 1996.

The CalPERS report said annuitant 2 made more than $6,000 per two-week pay period while employed as police chef full-time even though he was retired and collecting pension benefits.

CalPERS said Love currently collects $13,265 a month in retirement benefits.

Annuitant 3 in the report, identified by Wagstaffe as Edward Nakiso, is a retired Burlingame police sergeant receiving pension benefits through CalPERS.

Nakiso served as a commander for the Broadmoor police department from December 2012 to January 2014, the CalPERS aduit said. The CalPERS audit said he was paid $106.86 per hour for a two-week full-time paycheck of nearly $4,000 while collecting retirement benefits.

Nakiso did not respond to requests for comment. CalPERS said he receives $11, 955.84 a month in retirement benefits and that his full-time work as a commander in Broadmoor was not reported to the pension agency.

A fourth annuitant listed by CalPERS, was identified by the district attorney as former Broadmoor Police Chief Arthur Stellini.

Stellini retired in December 2018 after serving for approximately one-year as police chief in Broadmoor. The CalPERS audit said he became a reserve police officer for the department from December 2018 to February 2019.

CalPERS said a $32,000 lump sum payment made to the annuitant could not be explained by the Broadmoor police commissioners.

Stellini receives the smallest monthly pension from CalPERS of the top police officials cited in the report, $1,664.58. He also collects about $180,00 a year in pension income from the San Francisco Employees' Retirement System, according to public records.

Stellini had served in the San Francisco police department before joining Broadmoor. It is not illegal to collect San Francisco retirement benefits and CalPERS benefits.

On Dec. 14, another new police chief, Mark Melville, was named by the three police commissioners.

Melville has worked in various police departments, most recently as a San Mateo County deputy sheriff.

CalPERS said he is receiving monthly retirement benefits of $4,078. San Mateo County has its own retirement system and Melville can also legally collect a benefit from that county system. His San Mateo County pension benefit could not be immediately determined.

Under state law, though, Melville can't legally work full-time as police chief in Boadmoor and collect CalPERS retirement benefits, like the other chiefs are accused of doing.

Melville did not return phone calls and it's unclear if he has rescinded his CalPERS retirement. CalPERS spokeswoman Amy Morgan said she was bound by confidentiality rules in terms of whether Melville has rescinded his CalPERS retirement benefits.