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Diane Harkey's sad legacy in Dana Point

News

FPPC Investigates Diane Harkey re Conflict of Interest

In a July 24 letter, the FPPC acknowledged an investigation into Diane Harkey's actions concerning a vote on the Dana Point Town Center.

In an April 27, 2005 advice letter (FPPC File No. A-05-032), the FPPC ruled that Harkey should refrain from participating in debate or voting on issues concerning the Town Center. Harkey did not recuse herself from this decision and therefore has violated Commission Regulation 18702.5(b)(1)(B), according to the complaint.

Harkey's family owns several properties in the Town Center and will benefit from her council actions. According to minutes of the Oct. 22, 2006 meeting, Harkey failed to comply with state ethics laws by failing to leave the room during the discussion and voting. Instead, she participated in debate, in violation of FPPC regulation 18702.5(b)(1)(B).

Further evidence of Harkey's intention to influence the debate is found in an email to a Dana Point resident on Oct. 14, 2005. Six months after Harkey was notified of the conflict of interest by the FPPC, she writes, "Lets drop this and move on to the really big issuses - like Town Center and election 2006. We are on the same side."

The Enforcement Division will make public any contemplated action against Harkey that results from the investigation.  Harkey faces sanctions and monetary penalties for any violation of the conflict of interest law. The Enforcement Division can be reached at 916-322-5660. 


"Despite public denials from her own Assembly staff, just a few months ago, Diane Harkey disclosed under penalty of perjury an interest of up to $1,000,000 in "Point Center Financial," a company being sued by investors for fraud and under investigation for operating "Ponzi scheme," bilking investors, according to the Los Angeles Times and KNBC News. Harkey's recent mandatory financial disclosures as an elected official now prove her connection to the troubled company and may become evidence in the fraud litigation."

Diane Harkey's sad legacy in Dana Point-

  • a failed Town Center project;
  • more government spending;
  • more regulations;
  • more city union employees;
  • fewer businesses.

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