Fraud may have been committed by the purchasers by hiding who was really buying the assets of Executive Life (June 20). But those investors and policyholders who lost money were defrauded by state of California officials who agreed to the sale for the sake of political reasons instead of good business judgment.
It wasn't the source of the money that caused their losses. It was how much money was agreed to by the state officials who were supposed to be watching out for Californians. The state didn't try to minimize the losses. It tried to get the losses out of the news, as soon as possible.