The Democratic Party of Orange County (DPOC) is calling on Congressman John Campbell (R-CA 48th) to publicly return all campaign funds given by Assemblymember Diane Harkey (R-CA 73rd) and her husband Dan Harkey, president of the embattled Point Center Financial.
Dan Harkey and Point Center Financial are being sued by 53 of their investors for fraud and running a "Ponzi scheme." He is currently under investigation by the Securities and Exchange Commission, and being sued in Riverside County for racketeering, fraud, and intentional misrepresentation. Assemblymember Diane Harkey is listed as a defendant because the lawsuit alleges that Dan Harkey illegally transferred funds from investors to Diane Harkey for political purposes. Public documents show her as an employee of the company.
The Orange County Register reports that the lawsuit filed against the Harkeys on November 6, 2008 alleges that Dan Harkey exaggerated the value of property and was able "to make millions by collecting his fees upfront" which allowed him to profit from the loans even if they went unpaid. The Register also reports that the investors' lawsuit claims that 85% of Point Center's loans have either defaulted or been foreclosed.
"The Harkeys' combined contributions to Congressman Campbell from 2004 to 2008 totals $10,491," said DPOC Chairman Frank Barbaro, "under these questionable circumstances, the Harkeys' contributions to Congressman Campbell can hardly be considered legitimate and should be publicly returned immediately."
