EX-QUACKENBUSH AIDE SAID TO HAVE RECEIVED BIG CHEQUES

A aide to former California insurance commissioner Chuck Quackenbush received a series of large cheques from a football foundation after he channelled hundreds of thousands of dollars from insurance firms to the organisation, a spokesman for state attorney Bill Lockyer has said. Skillz Athletic Foundation, a non-profit organisation that received $263,000 from insurance settlements negotiated by Mr Quackenbush’s office, made out the cheques to George Grays, a former deputy to Mr Quackenbush, the spokesman added. “We have discovered that a number of cheques, for a significant amount of money, were written to George Grays”, said the spokesman, adding that at least nine cheques for up to $10,000 each had been discovered. Local media reported that the attorney general’s office is investigating whether the payments from the football organisation were kickbacks to Mr Grays. Mr Quackenbush resigned last week after an investigation alleged that his office pressured insurers into contributing more than $12m into foundations ostensibly helping earthquake victims and funding earthquake research after consumer complaints relating to insurers’ behaviour following the 1994 Northridge earthquake. Instead, it was said, the money went to groups — such as Skillz Athletic Foundation — with no relation to earthquakes as well as to fund TV commercials boosting Mr Quackenbush’s image.