Mar 152021

I first got to know Diane Harkey as an elected when she was in the Assembly. At the time, I was a long term officer in the CRA and at that time the CRA still had a presence in Orange County.

The Orange Juice Blog (left-leaning) Lampooned Harkey during her Assembly Days. On the Left is former Assemblyman Jim Silva

Shortly in to her tenure in the California State Assembly, Diane Harkey started having major-league issues. When I was checking the Orange County Superior Court Website and the Orange County Clerk’s Website – I was amazed by the sheer number of entries for both of them. Mrs. Harkey had to sue / evict a couple of tenants, Dan Harkey was getting sued for breach of contract and other similar stuff off and on.

As an officer in the CRA, I never knew about any of this. For me, this stuff has been recent and the only thing I knew about was the inexplicably stupid move of joining Carl DeMaio and going full Carl DeMaio rage mode on Darrell Issa. What I knew before that was a stalwart conservative, and I had no clue about the hundreds of pages of easily verifiable issues, drama and the like that has surrounded her career in politics.

In 2008, Diane Harkey did not draw a credible opponent, that has to be the only reason why the 14 liens against the businesses she was entangled in with her Husband were not an issue. Dan and Diane Harkey appear in the filings of at least 12 businesses in the past together. Dan Harkey has had at least 40 entities he has been the principal of. Most all of them show suspended or revoked for their status.

It is simply not possible for Diane Harkey to have not known and been an innocent victim of her Husband’s malfeasance. She was reputed to have driven a Bentley around town when on the Dana Point City Council. In 2009, the personal finances of the Harkey’s Business dealings became a matter of public scrutiny.

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Assemblywoman Diane Harkey’s blossoming political career appears to have been funded in part by earnings from her husband’s embattled real estate lending business, which is being sued for fraud and is being investigated by the Securities and Exchange Commission.

As Dan Harkey has attracted increasing criticism in recent weeks, the legislator – through her husband, political consultant and chief of staff – has attempted to distance herself from that business, Point Center Financial.

But public documents have listed her as both an officer and an employee of the company; her financial disclosure forms indicate limited personal assets and she indicated Thursday that her political spending has included money from her husband’s earnings. Campaign disclosure forms show she’s spent $2.1 million on political campaigns since 2004.

I have all of those public documents. She was an employee of more than one of those entities – including the one that was the focus of 9 years of litigation. (Dan Harkey lost the appeal of the $12.5 Million Judgement against him in 2018) The LA Times covered the SEC Investigation starting in Feb 2009.

In an interview,  [Dan] Harkey said the SEC was seeking thousands of pages of documents in connection with a $25-million investment pool that funded construction loans. He predicted the SEC would find no irregularities in his company’s loan pool, noting that the California Department of Real Estate took no action after a similar review.

The records I have show Dan Harkey’s Real Estate License is suspended.

Back in 2009 – the pattern was set, Play the victim, refuse responsibility and blame others for her maladies. (While tooling around in a Bentley and living in a $5MM house (current value) mind you)

“I’ve been married for 25 years to my husband,” said the Dana Point Republican. “We have personal income. He has income. I have income. Sometimes it was my income. Sometimes it was his income. Sometimes it’s both of our incomes. And I’ve saved him financially many years. So I’m not going to get into whose, yours, mine, ours. Who knows after 25 years?”

Harkey said she’s been unfairly drawn into business litigation that has nothing to do with her work as a lawmaker.

It is the opinion of this blogger, and I have ample evidence to back it up that Harkey is not an innocent victim, that their finances were inexorably intermixed, and that she was actually fairly drawn in to the litigation against her Husband. (Who she appears to have thrown under the bus in the above comment, more on that soon as well)

The OC Register continues: (And these are key to future installments of this series)

Campaign disclosures show that she’s pumped $1.25 million in personal contributions into her political races since 2004. She’s spent an additional $875,000 on other local, state and federal campaigns and political organizations. Two of those campaigns filed contribution disclosures listing Diane Harkey as working for Point Center Financial.

Unlike the people that sued Point Center Financial, I am not alleging the source of Harkey’s campaign funds was illegal. It is perfectly legal in my opinion from immoral activity. I am going to lay out how and why as it appears despite the numerous media stories and opposition research packets no one took the time to fully develop this concept. Perhaps Mike Levin did not need to in 2018 as he hammered Harkey by 13 points.

Diane Harkey, 57, burst onto the political scene in 2004, spending $135,000 of her own money to win a Dana Point City Council race. In 2006, she spent $936,000 of her own money in a bid for state Senate, losing in the primary. She spent $151,961 of her own money in her 2008 Assembly victory.

Remember the Bentley, remember the house she lives in that is worth $5Million and then read…

Diane Harkey is not currently employed except as an Assembly member, according to the “Statement of Economic Interest” legislators are required to file. She lists a range of $12,000 to $110,000 in non-real estate investments, most of it in a Point Center Financial fund.

Where did she get $2.1 Million in campaign cash from? And why is it unreasonable to conclude that some of it came from each of the multiple entites she was listed as a part of?

She also lists eight properties, six of which generate rental income. Two of those generate more than $100,000 in annual income – one of which is Point Center Financial’s headquarters in Aliso Viejo.

Make sure you remember this paragraph as well, that property is also another piece to the puzzle.

Dan Harkey told the Register last month that his wife had never been employed by Point Center Financial.

But disclosures filed by U.S. Rep. John Campbell, R-Newport Beach and former presidential hopeful Mitt Romney list Harkey as working for Point Center Financial as, variously, a broker or mortgage banker.

In addition she signed a 1990 “certificate of amendment” filed with the California secretary of state’s office changing the name of the Harkey business from All Loan Services, Inc., to Point Center Financial, Inc. It is signed by Dan Harkey – listed as president – and Diane Harkey – listed as secretary.

So Diane threw Dan under the bus it appears, yet Dan appers to have attempted to lie to cover for her. This is yet another theme that will recur as you continue reading further posts in this series.

The Orange County Register Article was prophetic on a number of fronts. Your Intrepid blogger is going to carry several of the issues raised in this article to what we believe is their conclusion. Before another coronation, it is time for people to learn about their candidates before they get in to office. It is easy to write about things like her past cheif of staff and dirty campaign cash after they happen, but we will do just that and more as the Diane Harkey Series Continues…

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