By: Libi Uremovic | Original Article at patch.com
City of Beaumont Risk Manager, Principal of GGMS until 2005, Principal of ERMAC
James Gregg
PERSONAL:
California Bar #177023 Active since 1995
Married to Registered Nurse
Office Located in Union Bank Building; 400 Oceangate, Suite 800, Long Beach, CA 90802
Principal of General Government Management Service; January 1, 2002. Transferred to Kapanicas August 10, 2005
PRINCIPAL OF GGMS: January 1, 2001 to August 10, 2005
Bond Requisitions acquired to date list $303,965 paid to GGMS
$33,015 Paid for Arbitrage Services between 1996 thru 2004, but Arbitrage documents were never filed with the IRS
PRINCIPAL OF ERMAC: JULY 1, 2003
As Principal and Manager of ERMAC; Gregg sells Insurance to the City of Beaumont
City of Beaumont Insurance Premiums are double the price that is charged to ERMAC’s other three Clients.
Moss Levy Hartzhem; ERMAC CPA
RISK MANAGER, CITY OF BEAUMONT: JULY 1, 2006
Gregg bought ERMAC Insurance on behalf of the City of Beaumont
Received bi-weekly pay totaling $214,224 in 2013
Removed from payroll June 30, 2015.
LAW VIOLATIONS
California Government Code 1090:
(a) Members of the Legislature, state, county, district, judicial district, and city officers or employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity.
Cali Govt Code 87100: “No public official at any level of state or local government shall make, participate in making or in any way attempt to use his official position to influence a governmental decision in which he knows or has reason to know he has a financial interest.”
Cali Bar Ass Rule 1.5:
“A lawyer shall not make an agreement for, charge, or collect an unconscionable or illegal fee or an unconscionable or illegal in-house expense.”
“A fee is unconscionable under this Rule if it is so exorbitant and wholly disproportionate to the services performed as to shock the conscience; or if the fee would amount to an improper appropriation of the client’s funds because there has been an element of fraud or overreaching by the lawyer in negotiating or settling the fee..”
Cali Penal Code 31: “All persons concerned in the commission of a crime, whether it be felony or misdemeanor, and whether they directly commit the act constituting the offense, or aid and abet in its commission, or, not being present, have advised and encouraged its commission, … or who, by fraud, contrivance, or force, occasion the drunkenness of another for the purpose of causing him to commit any crime, or who, by threats, menaces, command, or coercion, compel another to commit any crime, are principals in any crime so committed.”
Cali Insurance Code 750: “ (a) Except as provided in Section 750.5, any person acting individually or through his or her employees or agents, who engages in the practice of processing, presenting, or negotiating claims, including claims under policies of insurance, and who offers, delivers, receives, or accepts any rebate, refund, commission, or other consideration, whether in the form of money or otherwise, as compensation or inducement to or from any person for the referral or procurement of clients, cases, patients, or customers, is guilty of a crime.”
National Association of Insurance Commissioners: “Insurance fraud occurs when an insurance company, agent, adjuster or consumer commits a deliberate deception in order to obtain an illegitimate gain. It can occur during the process of buying, using, selling or underwriting insurance.”