Did State Rep. Harkey’s Husband help fund her political campaign with funds bilked from investors?

The LA Times is reporting this morning that State Rep. Diane Harkey’s husband is being sued by a group of investors on real estate deals gone sour. And with Diane Harkey contributing more than $1 million of her own money to her campaign, there’s a question of whether these investments were used to fund the assemblywoman’s campaign. Investors believe this is the case and it’s a part of the lawsuit.

From the story by Stuart Pfeifer:

The lawsuit accuses Dan Harkey of using slick marketing techniques — including mass mailings and DVDs of sales meetings — to attract investors in short-term, high-interest loans to real estate developers. It contends that Harkey exaggerated the value of the properties used as collateral by borrowers, making the individual investments appear much safer than they were.

Dan Harkey denied wrongdoing, saying any losses were related directly to the downturn in the real estate and financial markets.

Assemblywoman Harkey declined to be interviewed. A spokesman disputed the lawsuit’s claim that she used investor money to bankroll her campaign.

“She had a 30-year career in business and banking in which she acquired substantial financial resources of her own,” said Dave Gilliard, the assemblywoman’s political consultant. “She used her personal resources to help fund her political campaigns.”

  2 comments for “Did State Rep. Harkey’s Husband help fund her political campaign with funds bilked from investors?

  1. February 19, 2009 at 3:11 pm

    Chris — your comment was deleted and placing $%^* in front of letters in a curse word doesn’t exactly disguise what you wrote. If you wish to libel Rep. Harkey, contact her office directly

  2. Antony Cooke
    February 22, 2009 at 7:29 am

    Long, long ago, many of us here in Dana Point tried to draw attention to the despicable quest of Diane Harkey to grasp power and influence over her ‘subjects’. Our efforts, consisting of a recall effort, were rewarded with the most conspicuously obvious public assault upon us by Harkey and her vicious thug cronies.

    It didn’t matter what laws were broken: multiple Brown Act violations, relentless slander against the recall proponents at City Hall, recall signs consistently stolen, and even phony city newsletters published. Harkey even threatened the proponents with legal action from the dias on more than one occasion. And a sycophantic media just went along for the ride, while treating those of us who stood for the community as mere malcontents. One well-known political reporter even told us so.

    We were left largely to fight on our own because few in the community wished to be subjected to such public hazing. Unfortunately, after some initial interest and support, I don’t think even the Liberal OC took us too seriously, and we were ultimately left to twist in the wind. However, we have never gone away, our heads held high in the conviction that the day would come when Harkey would fall flat on her face, and we would have full crowing rights. The day is now in sight……

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