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| | Insurance Fraud Sentencing By Associated Press - July 20, 2004Sacramento (AP)- Former Deputy Insurance Commissioner George Grays has been sentenced to 16 months in prison on fraud and conspiracy charges.
Grays is the only state official charged in the scandal that drove Insurance Commissioner Chuck Quackenbush from office in 2000. He pleaded guilty more than three years ago, admitting that he and a friend stole $263,000 from a foundation set up by Quackenbush to get settlement funds from insurance companies accused of mishandling claims from the 1994 Northridge earthquake.
Grays has cooperated with federal and state authorities.
"I didn't stonewall, and I didn't run," Grays said after his sentencing Thursday. "I did everything I could to right my wrong. Knowing that will make it a little easier to live in the years to come."
Grays' friend, Brian "B.T." Thompson, was found guilty of conspiring with Grays to siphon money out of the California Research and Assistance Fund. Thompson, the operator of a Sacramento youth football program, was sentenced to seven years and three months in prison.
Ronald Weekley, also a friend of Grays, is also facing fraud, grand theft, preparing false documents, forgery and receiving stolen property in Sacramento Superior Court in connection with the Department of Insurance debacle.
Weekley was an officer and director of CRAF, which had received $12.8 million from insurance company settlements. |