Reporting from Sacramento — A four-year criminal investigation into alleged conflicts of interest, self-dealing and misuse of hundreds of millions of dollars at a state-run insurance company has closed without any charges filed.
The State Compensation Insurance Fund disclosed the news in an internal staff memo, released Wednesday.
Tom Rowe, State Fund's president, said he was told officially that a task force made up of the California Highway Patrol, the state Department of Insurance and the San Francisco district attorney's office "has completed its investigation of former State Fund employees and directors."
The district attorney "will not be filing any criminal charges," Rowe said.
Erica Derryck, a spokeswoman for Dist. Atty. George Gascon, confirmed that the investigation of the San Francisco-based insurer had ended. The Los Angeles Times reported in December that the investigation appeared to be petering out and that the legal statute of limitations for filing charges could be expiring.
The investigation began in March 2007 when State Fund's board of directors fired then-President James Tudor and Vice President Renee Koren after an internal review. The review identified questionable financial practices involving the sale of discounted policies through outside associations with links to certain board members.