Sen. Dianne Feinstein Sues Kinde Durkee, Alleges Massive Theft, Accuses First California Bank of Cover-Up
Sen. Dianne Feinstein filed a lawsuit today against Kinde Durkee, alleging that the disgraced treasurer took millions from her campaign accounts.
Feinstein also sued First California Bank, alleging that bank officials intentionally overlooked red flags because they wanted to keep Durkee's lucrative business.
The lawsuit (posted below) is the first solid confirmation that Feinstein was victimized in the Durkee scandal.
"Over the course of the past year, Durkee -- with the substantial assistance of her co-defendants -- has used the Feinstein Committees' money to cover her personal and business expenses," the suit alleges.
UCLA Bruins Men's Baseball vs. Cal State Fullerton Titans Men's Baseball
TicketsTue., Mar. 28, 6:00pm
Los Angeles Lakers v Washington Wizards - Verified Resale Tickets
TicketsTue., Mar. 28, 7:30pm
Los Angeles Clippers v Washington Wizards - Verified Resale Tickets
TicketsWed., Mar. 29, 7:30pm
Premium Seating: Los Angeles Angels v. Los Angeles Dodgers
TicketsThu., Mar. 30, 7:07pm
The suit claims that $2 million is missing from Feinstein's Senate account -- though it is unclear if the total losses are greater. The complaint lists numerous unauthorized transfers. Update: Bill Carrick, Feinstein's consultant, says there are $13 million in unauthorized transfers into and out of Feinstein's accounts.
Feinstein also claims that Durkee would not have been able to get away with it were it not for the cooperation of First California Bank, where she maintained her accounts.
"Durkee ensured the branch's cooperation by lavishing the bank with profits," the suit alleges.
First California Bank allegedly overlooked numerous red flags, any of which would have led to the exposure of fraudulent behavior much earlier. For instance, the suit claims that Durkee overdrew Feinstein's accounts 68 times in one year -- incurring overdraft fees each time.
"Durkee so thoroughly and rapidly depleted her clients' funds that she constantly had to shuffle clients' money between accounts in order to prevent checks from bouncing," the suit claims.
Durkee is scheduled to appear in federal court in Sacramento next month to answer a charge of mail fraud.
Get the ICYMI: Today's Top Stories Newsletter Our daily newsletter delivers quick clicks to keep you in the know
Catch up on the day's news and stay informed with our daily digest of the most popular news, music, food and arts stories in Los Angeles, delivered to your inbox Monday through Friday.