Quackenbush Whistle-blower Cleared of Wrongdoing

Cindy Ossias, a California Department of Insurance lawyer, was exonerated of violating lawyers’ ethics by the State Bar of California. Last June, Ossias leaked information to an Assembly Insurance Committee investigating alleged secret settlements between former Insurance Commissioner Chuck Quackenbush and six insurers following the Northridge earthquake.

After giving her testimony, Ossias was placed on administrative leave by Quackenbush, and in the days prior to his resignation, efforts were made to have Ossias fired. She was reinstated by Quackenbush’s successor, Clark Kelso.

The bar found that Ossias’ actions were protected by the California Whistleblower Act and concluded that her actions did not warrant disciplinary action. The decision is believed to be the first of its kind in the U.S.