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Quackenbush acted illegally – Attorney general issues opinion

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Former California Insurance Commissioner Chuck Quackenbush acted illegally in setting up nonprofit foundations to settle Northridge earthquake insurance claims, according to a formal opinion released by the state’s attorney general, the San Francisco Chronicle reported July 28.

The opinion by Attorney General Bill Lockyer states that although the insurance commissioner had authority to set up foundations, their purpose should have been directly tied to the enforcement action.

Lockyer’s opinion may help the cause of those who want to reopen the Northridge claims.

“I think it supports the same theory that we are arguing – that the commissioner did not have the authority to put the money not in the general fund, but in private funds used for political purposes,” Scott Kronland, a San Francisco lawyer representing taxpayers, told the Chronicle.

The opinion is not binding on the continuing state or federal criminal investigations into Quackenbush’s activities. A federal grand jury is currently hearing evidence in the case.

For full story, go to the San Francisco Chronicle.

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