Goldman Sachs Group, already facing a big Securities and Exchange Commission lawsuit, may be in hot water with CalPERS.

The pension fund said Tuesday it will ask Goldman why it didn't disclose the existence of the SEC's investigation while the big Wall Street investment bank was seeking business from the California Public Employees' Retirement System. The issue was first reported by the Reuters news service.

On an application for Cal-PERS consulting business in March, Goldman said its "Investment Banking Division is not known by the firm to be the target of a formal investigation."

At the time, the firm had already been informed by the SEC that it was likely to be the subject of some form of enforcement action.

The SEC sued Goldman in April for alleged fraud over its marketing of a subprime mortgage security.

In its application to the pension fund, Goldman was seeking inclusion in a pool of firms that would be eligible for real estate consulting work.

CalPERS in May tentatively picked Goldman and 31 others for the pool, although no contracts have been finalized, said CalPERS spokesman Brad Pacheco.

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