FEDS JOIN INVESTIGATION OF CDI

Federal authorities have joined California state officials in their investigation of corruption in the state’s Department of Insurance. The move will make FBI resources available to state officials during the investigation and will allow the use of the Federal Hobbs Act, which defines extortion as the receipt of money or other property for the specific performance of an official duty. The expanding investigation follows closely the July 10 departure of Commissioner Chuck Quackenbush, who was forced to resign his position for fear of impeachment and civil and criminal charges. Meanwhile, Acting Commissioner Clark Kelso dropped legal action against state senators for distributing confidential reports.