Clayton City Councilman Resigns After Embezzlement Conviction

The Clayton City Council was rocked this week by the resignation of Vice Mayor Joseph Medrano after the councilman was convicted of felony embezzlement.

Medrano, owner of Insurance Management Corporation (IMC), pleaded not guilty to the accusation that he took $159,000 from a Redwood Shores-based client and never sent the money forward to the insurance company, the Contra Costa Times reports. After an eight-day trial in Redwood City, the jury found Medrano guilty on Oct. 11. Medrano faces up to four years in state prison.

"I will be filing an appeal and hope to have the verdict reversed," said Medrano in an email to fellow council members. "I had fully expected to be found not guilty and this matter to be behind me. Unfortunately, the process will take more time."

Medrano claims that the client, iPass Corporation, breached its contract with IMC and owed him commissions due for work performed, according to the Clayton Pioneer.

The now-former council member is due in court Dec. 12 for sentencing. His name will still appear on the ballot in Clayton Nov. 6, since Medrano's resignation came too late for him to be removed from his run for second term in office.

What do you think of Joe Medrano's charges? Share your thoughts in the comments.