City of Clayton Vice-Mayor Joe Medrano has been found guilty of felony embezzlement, according to San Mateo County District Attorney Steve Wagstaffe.
Medrano, who is running for re-election this year, is the owner of Insurance Management Corporation (IMC), a middle-man between insurance companies and the businesses they insure. Medrano was charged with embezzling $159,630 from a former client. The prosecution said that Medrano breached his fiduciary responsibility when he kept for his own use money sent to him by iPass Corporation in 2009 to pay their Workers Compensation insurance premiums, according to the Clayton Pioneer.
Wagstaffe says Medrano faces a maximum sentence of four years in state prison. He remains out of custody on his own recognizance pending sentencing, which will take place on December 12th of this year.
Medrano has yet to resign from the Clayton City Council.
video: Joe Medrano talking in 2010 about the state taking money from the City of Clayton