Quackenbush Didn’t Report Funds, Campaign Audit Says

A state audit found that Insurance Commissioner Chuck Quackenbush failed to report more than $327,000 in campaign contributions--much of it from the insurance industry.

Campaign finance statements that Quackenbush filed during his 1994 bid for office were audited by the Franchise Tax Board and turned over to the Fair Political Practices Commission, which investigates charges of misconduct and political corruption.

Of the $327,000 in contributions Quackenbush’s campaign committee failed to report, more than one-third--about $115,000--came from insurance industry sources, according to the audit.

Quackenbush campaign officials said the reporting errors were innocent mistakes.

“Sometimes that stuff just falls through the cracks,” said Chuck Bell, an attorney representing the Quackenbush campaign committee. “Clearly there are some technical mistakes, but every campaign makes them. Out of 4,000 contributions, we got all but about 12 exactly right.”

Quackenbush could be facing stiff fines from the FPPC for the reporting errors. Although the penalties can vary significantly, similar violations by Gov. Pete Wilson during the 1990 campaign resulted in a $100,000 fine against the governor in 1992.

The eight-page audit shows that Quackenbush understated $213,500 in contributions--including $40,500 from Fremont Compensation Insurance; $25,000 from TIG Insurance; $10,000 from Transamerica Corp., and $25,000 from the California Life Underwriters Political Action Committee.

The audit also shows $6,680 in late contributions Quackenbush failed to report during the primary and general election in 1994.

In addition, his campaign statements did not show $107,933 in indirect contributions that he received during the campaign, including $15,113 from Allstate Insurance Co. for a mailer to its employees endorsing Quackenbush.

Ruth Holton, the executive director of California Common Cause, said the audit points to an attempt by Quackenbush to “hide where the money was coming from.”

Bell said there was no evidence to show campaign officials were trying to hide contributions.

Under an agreement with the FPPC, the tax board audits all statewide officeholders who raise or spend more than $25,000 during an election. The findings are then forwarded to the commission.

It is the commission’s policy not to comment on any investigation in progress.