Kinde Durkee 'Nearly Wiped Out' Loretta Sanchez's Campaign Fund

[Tx4obama]

Source: Talking Points Memo

Veteran California campaign treasurer Kinde Durkee "nearly wiped out" the $379,000 in Rep. Loretta Sanchez's campaign war chest, Politico's Jonathan Allen and John Bresnahan report.

"What we've learned this week is that unfortunately, the amount in our reelect account is substantially less than the amount we've raised this year, as well as the amount reflected in the records sent to us by Durkee & Associates," Sanchez chief of staff Adrienne Elrod told Politico. "In fact, our account has been nearly wiped out."

Durkee was arrested by the FBI on Friday on mail fraud charges. The feds said she used campaign funds for her own personal purposes, including paying her mortgage; her mother's nursing home costs; and credit card charges for cosmetics and ice cream.

A major player in the California campaign finance world, Durkee had an extensive list of clients in California, according to the Secretary of State's office. On the federal level, Federal Election Commission records show she was treasurer for 161 various committees over the course of her career.

Read more: http://tpmmuckraker.talkingpointsmemo.com/2011/09/kinde_durkee_nearly_wiped_out_loretta_sanchezs_campaign_fund.php?ref=fpa

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Any news about Sen. Dianne Feinstein (D-CA) yet?

Edited to add:

Loretta Sanchez is the U.S. Representative for California's 47th congressional district.
She is a member of the Democratic Party,

[no_hypocrisy]

1. I marvel and am dismayed how people like Durkee can embezzle

large amount of funds that they are supposed to be responsible for.

If they aren't being monitored, all bets are off.

It happens because these people are trusted. Their credibility is beyong challenge.

My former employer lost more than half a million dollars within six years to first his office manager and then (of all people), his partner. The money's gone and can never be reimbursed/returned. It nearly ruined him. Yet he plods on because he doesn't have a choice.

[SnowCritter]

2. I would say he "plods on" because he has character

a good one. He could easily have quit - that was an option. He chose not to.

Good on him! I wish you both well.

[Chan790]

3. My first boss in the non-profit sector...

the executive director of the regional satellite (run as a quasi-public entity*) of a national NPO, used fraudulent grant proposals to misappropriate about $40,000 from the state dept. of Education to fund a project he'd been refused grant funding for.

He'd figured out how to game the system and increased the requested amounts on all his other grant proposals knowing they were going to give him 90% of requested increase in funds on any renewed grant from the previous FY, also that he had a 10% cushion on reporting the use of the money. (Because neither the state nor IRS wants to be handed 10000+ receipts like "$1.24 for glue-sticks" or "$0.40 for parking meter"...they give some leeway on the amount you need to account for.) So he funded his non-approved program on the margins.

I was preparing the yearly audit and the paper records I was given were clearly a simulacra manufactured out of whole cloth, like he'd been keeping two sets of books all along: one official set that was in-no-way based in reality; one actual set that was completely off-record and known only to him. When the numbers didn't add up and the "facts" conflicted with what I knew to be reality, I tried to report it to superiors at the national organization and the state DoE only to be told "C wouldn't do that!" and "You should be ashamed of yourself...nobody has done more for_________ in the state of __ than C over the past 20 years." He got away with it and promoted; he's now on the national board of directors.

I now believe that no NPO should be allowed to keep their own books or conduct their own yearly audit. That's what accountants are for and using one provides another verification-level, another set of eyes, into the system. I guess the same should be true of political campaigns...it's not the first time I'm hearing of something like this.

[no_hypocrisy]

4. As much as he's needed the money that was embezzled, my ex-boss

to this day is deeply saddened by these two people with whom he had a confidential and (allegedly) trusted relationship. That they would do this to him. I've explained, it wasn't personal, as in vindictive. They just wanted his money that they viewed as *their* money. He can't get over the betrayal of his trust and friendship.

BTW, his partner had lousy credit and convinced him to get a credit card at Nordstrom's in *his* name. She was paying the minimum balance. She ran up a tab of $5,000 and left him with the bill. (She was essentially disbarred, had to leave the partnership, and then . . . died.)

[bemildred]

5. Our political system is thoroughly corrupt, decadent, baroque.

This is the NORM, people run all the time without any intent whatsoever of taking office, it's a way to make money and advance your media career.

[cstanleytech]

6. Of course its only isolated to our political system and in no way are other political systems

corrupt :sarcasm:

[bemildred]

7. "Look!! Over there! Pay no attention to the little man behind the screen! nt

[ShockediSay]

8. Think of all the jobs they could create if they were unregulated n/t

[Tx4obama]

9. UPDATE - Diane Feinstein campaign funds wiped out too !!!

More here: http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4992382

[MadMaddie]

10. WTF? There should always be redundancy and checks and balances

audits etc...never trust anyone with that amount of money. Not even family.