Hawaii Quack-O
By Robert Warne - February 6, 2002With ex-California Insurance Commissioner Chuck Quackenbush held up in Hawaii, one would think that things were about to go down Hawaii Five-0 style. But now it appears that the 18-month investigation into his improprieties while in office is about to wind down without any charges filed by Federal prosecutors.
The Jan 5 news came as a disappointment to many who feel the commissioner should be prosecuted.
But California prosecutors haven’t closed their books yet, so for the time being there is still the possibility of a Steve McGarrett re-enactment, complete with his famous phrase, 'Book 'em Danno!’
The Associated Press reported that the investigation involving Federal, state and Sacramento County prosecutors hasn’t been able to piece together enough evidence to file criminal charges against the fallen commissioner.
The Sacramento Bee quoted a source close to the investigation who said, “We couldn’t make a case against Quackenbush or Palmer and, believe me, we tried.” The unnamed source also said, “We couldn’t make it on the documents alone, and we needed another credible witness to make sense of everything.”
William Palmer was the commissioner’s top aide, when Quackenbush was forced to resign in 2000. The main accusation against Quackenbush is that he allowed six insurance companies to avoid up to $3.7 billion in fines by contributing approximately $19 million to foundations he set up.
A year ago former Deputy Commissioner George Grays pleaded guilty to charges he took $170,900 in kickbacks for diverting money from one of the foundations to a sports camp organization that Quackenbush’s children attended. It is believed that Grays alone isn’t a strong enough witness against Quackenbush and Palmer.
With the Feds stepping out of the picture there are still many in California who aren't ready to say aloha to charges against Quackenbush.
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