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.
“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.”