Officials from four government agencies serve search warrants at the offices of the Builders Exchange in Redding today. It is part of an investigation into alleged misconduct by former board members and employees of State Compensation Insurance Fund.  Kent Dagg, who was asked to resign as a director of State Fund heads the Builders Exchange.

Erica Derryck, spokeswoman for the San Francisco District Attorney's office, confirmed that law enforcement action is underway, but would say little more. "The San Francisco District Attorney's Office, the California Highway Patrol, the California Department of Insurance and the California State Franchise Tax Board are investigating allegations of misconduct involving former employees of the State Compensation Insurance Fund, which is headquartered in San Francisco," she told Workers' Comp Executive.

The investigation is thought to be related to earlier allegations about the mishandling of dividends or other funds destined for employer members of State Fund safety groups managed by Dagg while he was a board member.

Expanded coverage of the search will be provided in the premium PDF edition.

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