Insurance Commissioner drops two law firms handling PGMA cases. PGMA's founder accused of siphoning millions. Fraud is deemed likely in the collapse of the Pacific Group Medical Association. Insurer diverted funds, says investigator. Company owned by union leader's daughter subpoenaed.
Aid comes in an unrelated case.
Plaintiff's attorney is upset about government entering the case. The plaintiffs seek to recover funds from PGMA and an affiliate. A computer error caused over-payments by some customers using a special discount coupon. State regulators blame budget cuts and lack of staff for a decision not to investigate Maui workshop. Union contract concealed for 17 years.