Toiling in Shadows, Then Seared by Spotlight

After toiling for a decade in low-level political jobs, George Grays finally got a chance to wield power when he joined the staff of California Insurance Commissioner Chuck Quackenbush.

Today, as Quackenbush faces scrutiny from the California attorney general and inquiries by the Legislature, Grays’ career is a shambles. He resigned three weeks ago amid allegations that the network of foundations he helped oversee on behalf of Quackenbush misused millions of dollars.

Grays, 37, was only a few years out of Cal State Chico in 1989 when he began working for Republicans, first Gov. George Deukmejian, then in Gov. Pete Wilson’s administration. His forte was that he could provide access to minorities for his Republican bosses. That appealed to Quackenbush, who was positioning himself to run for higher office--governor or U.S. Senate.

As Wilson’s term was ending in 1998, Quackenbush selected Grays to manage his 1998 reelection campaign. In December 1998, a month after Quackenbush won, he hired Grays as deputy insurance commissioner, a $93,500-a-year post overseeing public relations.

Not one who fits the bureaucratic mold, Grays drives a new Mercedes and moves comfortably in the company of entertainers and sports figures. He played football at Cal State Chico.

Grays never had significant authority over policy in the Wilson administration. He worked in community relations, answering letters and phone calls, and later assisting the administration with Wilson’s mentoring program aimed at presenting role models to young people.

“It was a difficult portfolio given the policies the governor was pursuing,” said a former aide to Wilson, referring to the former governor’s efforts to end affirmative action. But the aide recalled that Grays was a hard worker who performed well.

Grays’ fall came as Republicans struggle to rebuild the GOP after their trouncing at the California polls in 1998. The party has particular difficulty finding support among minorities, after Wilson in the mid-1990s led campaigns aimed at ending affirmative action and targeting illegal immigration. Quackenbush was one of a small number of Republicans with the potential to lead the party out of its quagmire, and Grays was one who gained Quackenbush’s trust.

“One of his jobs was to find ways to reach underserved communities,” said Ed Swanson, Grays’ attorney, adding that his client has done nothing wrong. “That was an explicit objective of the insurance commissioner and it fell under his portfolio.”

One way Grays went about his job was to help spend money that Quackenbush extracted from insurance companies. The recipients were nonprofit groups established with the goal of helping low-income people, primarily African Americans. None had a connection to insurance, or to victims of the Northridge earthquake.

A week ago, a state Department of Justice agent knocked on the door of Grays’ bungalow in a trendy neighborhood east of the Capitol to serve him a subpoena. A “For Rent” sign is on the front lawn now.