Former California Deputy Insurance Commissioner George Grays pleaded guilty Tuesday to mail fraud and money laundering charges. The former deputy commissioner, who was driven from office last summer along with Insurance Commissioner Chuck Quackenbush, is the only person who has been prosecuted for misusing penalties paid by insurance companies stemming from the 1994 Northridge earthquake.
Grays was accused of keeping $170,900 from the California Research and Assistance Fund, a foundation created by Quackenbush with about $12 million in insurer settlement money from Northridge. Grays pleaded guilty to two counts of mail fraud and one count of conspiracy to commit money laundering. Together, the charges carry a maximum penalty of 30 years in prison and roughly $1 million in fines.
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