Feb 242023
 

Originally Posted in 2021.

(Dan Harkey was civilly convicted for fraud in 2013 and lost an appeal in 2018)

We have been demolishing Diane Harkey’s carefully crafted image for herself. Something Mike Levin barely used but should have made a key issue of was Diane Harkey taking campaign cash from people who got hard money loans from Dan Harkey. When you read on, you will realize that all of these donor’s projects failed. Diane Harkey never returned the money, let alone has been able to comprehend the optics of what she did.

As a bonus, the post covered Bill Brough – the monster who was run out of the Assembly in 2020. Yes, he worked for Diane Harkey for a short period. Drama, scandal and controversy seem to follow Harkey.

Bill Brough, with the mystery beverage on his last day in the Assembly. Hopefully, soon there will be pictures of him in Prison – experiencing the best prison life has to offer

In 2009 as the Point Center Financial Saga was detonating, Diane Harkey had problems beyond just people asking where the $2.1 Million she contributed to her own runs came from.

The L.A. Times lit her up good over a few peculiar campaign donations. Donations I think should have never been taken and then should have been returned. But, she’s a victim and it wasn’t her fault etc etc etc.

California Assemblywoman Diane Harkey accepted $16,600 in political contributions from real estate developers who had received loans from her husband’s business, now under investigation by the Securities and Exchange Commission.

The borrowers later failed to repay loans brokered by her husband’s lending company, Point Center Financial Inc. of Aliso Viejo. The firm was accused of fraud last month in an investor lawsuit, and the company’s owner has confirmed that Point Center is under investigation by the SEC.

Harkey (R-Dana Point) said Monday that there was nothing improper with the developers’ contributions and that she had no idea they had loans pending with her husband’s company at the time they donated to her campaign.

Then why did Diane Harkey call them for donations? How would they have crossed her radar screen? Someone had to introduce her to these donors? But note, no offer to return the money or attempt to remedy the bad optics. Patterns, folks… patterns.

In the lawsuit filed last month, the investors contend that Point Center neglected to inform them about the risky nature of its loans and that Harkey, a defendant in the lawsuit, used proceeds from bad loans to donate nearly $1.1 million to her political campaigns.

Harkey said she used her own money — from a prior “six-figure” banking career — to donate to her campaigns for the state Senate and Assembly.

It came from my personal income. I don’t care what the lawsuit says. It’s frivolous. It’s full of lies. And it will all come out in court,” she said.

Wait, what? Just a few weeks later in the Orange County Register – this gem:

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?

It did come out in court, Diane Harkey had to sue her way out of community property (speaking of saving Dan Harkey), Dan Harkey lost a $12.5 Million Judgment and then lost on appeal in 2018. And, not a dime paid to any victims – more on all this in future posts. (BTW – suing your way out of community property is a spouse trying to separate themselves from liability in a lawsuit related to the other spouse.)

Harkey accepted $16,600 in campaign contributions from three developers who borrowed tens of millions of dollars from Point Center, according to campaign finance records.

Two of the loans ended in foreclosure and a third was modified because the developer was unable to meet the original terms.

C. Lynn Burnett, president of Burnett Development Corp., gave $5,000 to Harkey’s failed Senate campaign Dec. 31, 2005, records show. Two months later, Point Center Financial funded a $19.2-million loan to Burnett for a development project at the Palm Springs Country Club.

Burnett’s company defaulted on that loan, and Point Center investors ended up holding title to the property, which is now in such disrepair that the city of Palm Springs sued Point Center and the investors demanding immediate improvements. The property is worth a fraction of the amount Burnett owed when he defaulted. Burnett died in 2007.

Home builder R.W. Hertel & Sons Inc. gave Harkey $5,000 on Dec. 31, 2005, two months before closing on a $16-million real estate development loan with Point Center. Hertel defaulted on that loan and Point Center foreclosed on behalf of investors. Like the Palm Springs project, the Hertel property is worth only a fraction of the loan that investors funded, according to allegations in the lawsuit.

Note the timing of the donations. Were they done to grease the skids of business deals?

“At no time did Point Center Financial ever disclose that she was receiving money from borrowers at the time investors were putting up money for loans,” Charton said. “Had they disclosed it, investors might have said, ‘I’m not going to give you money to lend to somebody you have a special relationship with.’ ”

Charlton was one of the plantiffs that successfully sued Point Center Financial. The rub on Point Center Financial is they would go to ordinary people with an offer of a great real estate deal and get them to put up money that was used to write loans to developers. Such loans are called hard money loans and many of them detonated in the 2008-2010 Real Estate Market, Hard Money loans are extremely difficult instruments to begin with and have high failure rates. The appearance of large checks weeks before the contributors got high-risk unsecured loans they later defaulted on smells to high heaven.

Speaking of poor judgement, it is not just in taking tainted campaign funds. I learned through confidential interviews that Diane Harkey hired none other than the monster William “Bill” Brough.

Here’s the ballgame, Brough served as her Chief of Staff for a short time. His tenure was marred by several allegations (yet no verified complaints or victims forward) of sexual misconduct. Apparently, just a few years before backing in to the Assembly Brough took a test run at his animal house lifestyle in Sacramento.

It is clear to me that Harkey disdains Bill Brough and was helpful when many others in the OCGOP were still drinking the incumbent kool-aid and having group think about how to defend the status quo. However, Diane Harkey is alleged to have hired Bill Brough at the behest of his codenendent spouse. How many women did Brough hurt whilst infesting the Cheif of Staff office for Diane Harkey?

Did Harkey know about the incident in 2011 with Lisa Bartlett and Bill Brough? It happened in Dana Point when both were on the council she once served on? Then, why was Brough able to last as long as he did when I know for a fact (albeit heresay from people there) that Brough was already out of control and they were telling Diane Harkey what he was doing!

Harkey (R-Dana Point) said Monday that there was nothing improper with the developers’ contributions and that she had no idea they had loans pending with her husband’s company at the time they donated to her campaign.

#facepalm. I guess there was nothing improper with hiring Bill Brough either, so there’s that I guess.

Feb 232023
 

Here is the bottom line. Jessica Patterson is getting re-elected.

With Rob Bernosky, Thomas Cole and Mike Cargile running against Patterson, the odds increased dramatically. Even if Patterson was vulnerable, this refusal of the Conservatives to unify basically dooms any effort against her.

My advice to the opponents, drop out now. It is time to make peace and figure out how to work with the existing leadership.

Your intrepid blogger had gone on a rant about the behavior of the conservative opposition to the current CAGOP Leadership back 6 weeks ago. Not only was the rant ignored, but the behavior has gotten worse. I may as well have just let the two FBI agents that visited me re-register me libertarian or something.

Vice Chair / CCA Chair:

I have also been told by firsthand accounts that the third candidate in the Vice Chair race has been getting help from the woman who blew up the CCA, Michelle Guerra and has been attempting to peel supporters of the second candidate off. I have come across multiple instances of this.

Once again, Conservatives refuse to unify (and should have behind Corrin Rankin anyway) and now rifts are being widened. To what end?

There will be a side effect of this effort – as it will impact the CCA Race. Given that candidate 2 for CAGOP Vice Chair is a county chair himself and that Guerra and others are now actively trying to wreck him… what happens to the coalition they were trying to create for their candidate for CCA Chair? (once again Conservatives could not settle on one candidate as there are two opponents)

It gets worse, I’ve learned that some County Chairs have accused Candidate 2 of screwing over Anna Kramer who is allegedly the pick of the opposition., Kramer is the third candidate for CCA Chair (Guerra is the second). This is odd as Kramer and Candidate 2 for CRP Vice Chair are connected publicly! Has Anna Kramer abandoned Candidate 2 as well? Update: have now been told that Kramer is indeed advocating for candidate 3 and has thrown candidate 2 for CRP Vice Chair aside despite the online endorsement and collaboration.

Talk about undisciplined! Talk about a circular backstab squad. OUCH.

Again, Conservatives should have unified behind John Dennis for CCA Chair.

These fractures are heartbreaking, but are not surprising. Candidate 2 for Vice Chair deserves better than what is being done to him. The Conservative movement deserves better than a circular firing squad. I personally should not be here writing a blog wondering why I put myself at personal risk for this entire crew, but I am.

Does this bad behavior affect other candidates running for smaller CAGOP office?

We’re going to find out soon…

Feb 222023
 

Originally Posted in 2021.

Had Diane Harkey never gone postal on Darrell Issa, I may have never looked in to her background

I took the time to talk to people that like Diane Harkey. I needed to in order to balance the avalanche of media stories. As a conservative, I am used to seeing the media attack conservatives as a matter of course. I needed to get perspective which I got…

We’ve detailed quite a history up to this point, so let me summarize where we are at before I complete the story with information I am still surprised was not fully vetted.

Diane Harkey was elected to Dana Point City Council in 2004 and despite telling people she was not running for higher office went and did so promptly in 2006, losing an open primary to Tom Harman for State Senate.

Diane Harkey was also subject to a recall attempt in 2007 and was well known for tooling around town in a Bentley.

In 2008, Harkey ran for and won election to the Assembly.

In 2009, the personal financial detonation in the life of Dan and Diane Harkey began with a well-vetted and publicized lawsuit related to dishonest and possibly illegal business dealings.

in 2009, Diane Harkey was lambasted for taking donations from people with Business deals pending with her Husband.

While in the Assembly, her tenure was marred by the hiring of Bill Brough and an embarassing Wage Garnishment.

In 2013, Dan Harkey was found Civilly liable for $12.5 Million in damages related to the failed business. Diane Harkey has attempted to separate herself from it, despite being listed as an employee and otherwise being connected.

In 2013, Diane Harkey sued Mark Wyland for libel, losing an Anti-SLAPP judgement she was able to overturn on appeal. She dropped that suit once the Anti-SLAPP was vacated in 2015. Wyland ran against Harkey for Board of Equalization.

While at the Board of Equalization, the multiple scandals came to a head. Why she decided to engineer getting herself elected Chairman of that board is a subject of debate. Nepotism, corruption, abuse of funds/staff, dilapidated mold-riddled buildings and the like led to a historic shredding of the function and authority of the BOE while she was chair of that board. Worse, she defended the BOE in several media stories.

Yet, despite being surrounded with scandal and drama, Harkey has consistently protested her innocence and has attempted to portray herself as a victim.

Nowhere was this more evident than in her disastrous 2018 run for Congress. To this day, Harkey believes that it was all Darrell Issa’s fault for her defeat. The evidence shows otherwise. She also hitched her wagon to some unhinged attacks against Mr. Issa in 2020 that caused several political insiders pause.

I have also been struck by stories about Harkey’s personal conduct. It is like she is two people. One group of people talk about a kind, generous person. Another group of people talk about a mean, angry, entitled candidate that drank a lot. Two things I know based on my research, she has a temper and she has a difficult time accepting any responsibility for the things that have gone on around her.

In the course of my research, I have found copies of her Form 700’s from 2012, 2013, 2015, 2017, 2018 and the 2019 exit form. I also have a copy of her FEC candidate financial interest form as well. This caused me to double down on research from 2014. It would prove to be critical to finally once and for all exposing the truth about the finances of Dan and Diane Harkey.

One of the most striking items beyond the Bentley she once drove are the notations of a private jet. It appears to have been sold in 2014.

In 2009 – Harkey made the single most damming comment I have seen in dozens of news stories to the LA Times when they covered the SEC investigation in to Dan Harkey:

“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.

So whose private Jet was it? Whose Bentley was it? Whose $2 Million plus in campaign cash was it? According to Diane Harkey – anything is possible, meaning that claims she financed her campaigns all or in part with dirty money from dubious enterprises and legally proven fraud is indeed confirmed true by her own words. Mark Wyland should have never lost the Anti-SLAPP decision in 2015. But if that is not enough for you, keep reading. Neither the DCCC nor Mark Wyland did enough homework.

IN 2013, Diane Harkey had to sue to get out of Community Property when her husband was in the process of losing a $12,500,000 judgement. In 2014, she claims in a letter she sent to State Controller John Chiang that she was legally separated and thus her Assembly Salary should not be garnished. She also indicates they were in the process of filing for divorce, this is another lie or at best a grotesquely deceptive statement. Remember the date of the letter 8-5-2014.

It is my opinion based on extensive research in to the business dealings and court records related to Dan and Diane Harkey that she lied twice in that letter. I’ve also received an indication from a political insider with connections close to Mrs. Harkey that confirm – Diane Harkey never filed a legal separation. Re-read the letter she wrote to John Chiang and read her comments in the media in 2014 and later. They are so clear that even the most hardened of Harkey supporters can understand them – she made it clear she and Dan were legally separated multiple times.

The deception over the Harkey divorce is critical to understanding the unethical and dishonest behavior of both Harkeys.

Just months after Dan Harkey lost the lawsuit judgement, Diane Harkey created DHJP2, LLC. This was on 12-18-2013, and thanks to the 2015 financial disclosure it appeared on where it was not present on the 2013 disclosure causing me to believe it was started in 2014, I looked for it. It was probably a part of the missing form 700 I could not find on line.

What is the significance of DHJP2, LLC and the two lies to John Chiang? When we continue our expose in to Diane Harkey, we are going to finish the work that none of Harkey’s opponents ever did.

Feb 212023
 

Diane Harkey’s rampage has been screwing the OCGOP for years. Ask her, and she will tell you repeatedly what a victim she is.

When I first got this fundraiser invite, I wondered what was in it for Diane to do this. It is given there is rage and revenge; this has been the calling card of Harkey for years.

As your intrepid blogger has been assimilating information from around the county, let’s list the coalition of the insane, depraved, and corrupt.

Gene James. We’ve written about this guy for a long time. He was endorsed by the OCGOP despite repeated warnings. In defense of the OCGOP, the opponent of James was a 19-year-old communist (literally a communist)… and another thinly funded candidate they did not feel like trying to help. I was also told they ignored James’ abusive behavior towards the third candidate and other women. In addition, we have proven James has been sued, liened, and can’t even pay a $500 traffic ticket. This is over and above James buying military medals from amazon or something and wearing them to black-tie events!

We have been told that Gene James has enablers in the local Lincoln Club and is attending OCGOP Meetings to intimidate people with his 6’7″ and 350ish frame. Further, James has been open about his desire to overthrow the leadership of the same OCGOP that once endorsed him!

Now add another jilted endorsee of the OCGOP, Bryan Maryott. Yes, Bryno has been out talking to anyone that will listen about how the OCGOP abandoned him, blah blah blah. Based on what I was told by people with knowledge of the NRCC’s inner workings, they investigated Bryno thoroughly and determined that he was out of reach to compete with Levin in CA49. I thought Bryno’s campaign was well run and looked good. However, from 550 miles away, I did not have the day-to-day knowledge that people closer had.

It appears that Bryno is out of touch with reality as well. But there is a theme with the Whitaker haters.

  1. They were endorsed by the OCGOP
  2. They came to believe the same OCGOP, not them, was why they lost. (or lost the support of later in the case of Gene James)
  3. They had unrealistic expectations of what the OCGOP was supposed to do. (aka they were lazy campaigners)
  4. They are now focused on Fred Whitaker, using him as a straw man

This gets me to the drunken Diva, Diane Harkey. Once a huge fan of Fred Whitaker, she is now calling for his ouster in between fundraising for democrats and drinking.

Jennifer Beall is the only person I know in Orange County who has defended the drunken diva. Beall is in an interesting position as she transitioned from the embattled Assembly member Laurie Davies (whose district is barely R-leaning) to being the Chief of Staff for Kate Sanchez.

Further, I have spoken to Beall around three times over the years about efforts to oust Mr. Whitaker she was supporting and/or participating in.

I wonder if Beall (Married to RSM Councilman Tony Beall) is part of the latest effort against Whitaker. Does this mean Davies and/or Kate Sanchez are participating? If so, why? Both were endorsed by the OC GOP and won their respective races. It is also noteworthy that Laurie Davies has avoided taking positions in CAGOP officer elections.

Harkey has more retread than most semi-truck tires, but it is everyone else’s fault she keeps losing. Few defend her anymore or try to explain her actions, but Harkey continues alienating former supporters.

Where does Harkey go to try and rally support? Gene James? Bryno? Those Lincoln Club guys?

In the meantime, your intrepid blogger must remind people what an entirely morally corrupt disaster Diane Harkey is. Everyone with any stake in Orange County Politics needs to shun Diane Harkey and Gene James. If Bryno is proven to be doing what I believe he is, add him to the list.

If you are wondering why I am suddenly defending Fred Whitaker, it is simple, he is getting a completely raw deal from a group of selfish malcontents he helped as chairman of the OCGOP. That is complete bs, and these people are the coalition of the insane, depraved, and corrupt.

To be continued as we take you on a tour-de-Harkey once again, as it appears memories are too short down in Sunny Orange County. (Perhaps some Nevada snow and sub-zero temperatures are needed to provide therapeutic assistance to those in Orange County…)

As a footnote, an excellent site about Diane Harkey is still live.

Feb 202023
 

Never Forget, I am watching you…

In case you missed it, Former Eureka USD Board Member Eric J Bose passed tragically of cancer. While 2 seats on that board changed hands recently, there is a lot more work to do in order to break the democrat-Eureka Schools Foundation stranglehold on that district.

Also in Granite Bay, many of you will remember the democrat-nimby coalition that rallied against Kirk Uhler to elect the disturbed Suzanne Jones supervisor in Sup D4. One of the things they did was to file 10 FPPC complaints against Uhler. (One of which affected your intrepid blogger as well) 7 of the complaints were dismissed without follow up because they were frivolous. The other 3 were closed without any fine or action.

IN addition, the same Democrats and Nimbys complained to the attorney general about Mr. Uhler’s wife getting a pay raise (for the first time in 10 years, mind you). The leftist coalition had convinced themselves that Uhler had engineered this raise for himself. The correct answer is that Uhler never discussed it with anyone and did not participate in closed sessions, open sessions or any other meetings of any sort. The AG’s office interviewed a ton of people and subpoenaed documents.

While Suzanne Jones lied about this fact (and later hired a family member herself after savaging Kirk over his Wife’s job in a different part of Placer Government)… the vindication came years later but only after the crazed Nimby-democrat coalition had successfully lied about Uhler enough to elect the crazed Suzanne Jones.

You can count on Suzanne Jones and her Nimby-democrat coalition to scream cover up as their cognitive dissonance and inherent dishonesty prevents them from acknowledging reality. (Note that the AG, was Xavier Becerra who is now a piece of the Biden Administration, what Irony)

Crazy Suzy is going to feel like a political piñata soon. No one I know likes her. Everyone I know wants her gone… well maybe Thomas N Hudson still likes her. Like I said no one likes her.

Given that Suzanne’s campaign was built on a foundation of lies and her behavior since election has been as corrupt as anything you’d see in Placer County, there should be a five-alarm fire in the Swan Lake area for quite a while.

Right now, before some star-struck also rans decide to jump in, Jones has a single opponent. Bruce Houdesheldt opted not to pursue the run. I will have more to say about Sup D4 for sure.

In Sup D3, there is clarity coming as well.

I have met with Mike Murray and laid out for him what I believe his benchmarks should be. If Murray can not produce the endorsements and fundraising, he will not be a viable candidate. If he does, Dave Butler will have a race.

Your intrepid blogger prefers Dave Butler out of the field as it is currently, for a myriad of reasons I will lay out at a later time.

The race has become clearer now that Mr. Rocklin, Ken Broadway has decided to stay on the Rocklin City Council. Broadway is loved and popular in Rocklin. I met with him recently and we had a pretty frank conversation about his life and circumstances. Broadway asked the right questions and I believe made the right decision. It is exceedingly rare for someone that would have been as viable as Broadway would have been to withdraw.

Please note that your Intrepid Blogger is endorsing Ken Broadway for Rocklin City Council should he decide to run for a third term. This is not negotiable.

I have been told by several that Greg Janda is retiring, this will create an open seat. David Bass who is still not a Republican and Ken Broadway are the two incumbents that are likely to run for re-election.

To be continued…