CDI Won’t Pay Quackenbush’s Legal Fees for Criminal Investigation

October 20, 2000

California Insurance Commissioner Harry Low released a statement yesterday that the California Department of Insurance (CDI) will not pay legal fees for former Commissioner Quackenbush, William Palmer; George Grays or Michael Kelley in connection with criminal investigations.

“Based upon my review of the applicable legal authorities and the advice which I have received, I have decided that for the now concluded civil investigations, and except for decisions by Mr. Kelso, the Department will be responsible for the legal fees of the present and former employees including former Commissioner Quackenbush.

“As has been made public, the United States Attorney, the Attorney General and the Sacramento County District Attorney are involved in a criminal investigation of former Commissioner Quackenbush’s insurance company earthquake conduct settlements…the Department will not be responsible for the payment of any legal expenses for any present or former employee who is charged with any crime.”

Low consulted with Attorney General Bill Lockyer and his senior staff as well as that of the Department’s chief counsel and chief deputy (Clark Kelso) to make the decision.

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