Medrano ordered to pay restitution in fraud case

April 8, 2013

Joe Medrana at the courthouse.Clayton insurance broker and former vice-mayor, Joe Medrano, who is currently serving a three-year sentence for felony embezzlement, has been ordered to pay $175,750 restitution to his victims.

San Mateo Superior Court judge Jonathan Karesh ordered Medrano to pay Travelers Insurance $133,111.50 and iPass Corporation $42, 639.12. In addition, he must pay a collection fee of $17,500 to the probation department. Medrano appeared at the March 29 hearing without legal counsel, representing himself.

He was convicted on Oct. 11, 2012, after an eight-day trial, of pocketing nearly $160,000 in insurance premiums sent to him by iPass Corporation for insurance coverage instead of sending the premiums to the underwriter, leaving iPass without Workers Compensation insurance.

Medrano resigned from the city council following his conviction and the California Department of Insurance revoked his broker’s license.

He is appealing the conviction, said District Attorney Steven Wagstaffe; a process that could take as long as two years before a decision. Medrano filed his notice of appeal on Feb. 20. Wagstaffe said his office does not know if Medrano has retained an attorney to handle the appeal.

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