County Still In Pursuit
Of $12.5 Million Claim
County officials pursuing a $12.5 million performance bond to recover losses in the misappropriation of the treasury are in the process of providing information to the insurance carrier in the first step towards a possible settlement.
That is the report from Chester Robertson, recently appointed Modoc County chief administrative officer. “The administrative office had a meeting with the insurance broker, and we have worked to set a meeting with a claims specialist with the broker to discuss processing of the claim,” Robertson told the Modoc County Daily News.
The claim against various county officials was filed last March with Alliant Insurance through Trindel Insurance Fund, the county’s broker. At the time an electronic memo between staff members at Chartis Insurance and Alliant Insurance acknowledged receipt of the claim, but asked for more information.
“We are trying to better understand how the insured may have suffered a loss,” writes Chartis’ complex claim director for fidelity bonds, in a e-mail to Alliant Insurance.
Chartis, headquartered in New York City, is a global insurance company offering various protection including political risk and crisis coverage, according to its web site. Alliant Insurance Services of San Francisco ranks among the 15 largest insurance brokerage firms in the United States.
Auditor Darcy Locken is another county official participating in early discussions with representatives of the insurance broker and the California State Association of Counties’ Excess Insurance Authority.
“I participated in a conference call with our insurance broker, Trindel representative and CSAC EIA representative. They had questions regarding the treasury deficit (what, how, when and where) and I did my best to clarify the situation. There was no actual transmittal of information, other than verbal communication,” Locken said.
The claim seeks damages against bonded county officials who are linked to the treasury misappropriation estimated at nearly $20 million. Heading the list, according to allegations by then-DA Gary Woolverton who drafted the claim, are former Auditor Judi Stevens, current Treasurer Cheryl Knoch and retired CAO Mike Maxwell.
It is unknown at this time if a monetary settlement would set in motion an effort by the insurance carrier to recover its compensation to the county by filing suit against the various individuals named in the performance bond claim.