FBI arrests prominent Democratic campaign treasurer

SACRAMENTO -- A prominent Democratic campaign treasurer who works for federal, state and O.C. lawmakers including U.S. Sen. Dianne Feinstein. Rep. Loretta Sanchez and state Assemblymen Lou Correa and Jose Solorio has been arrested by the FBI on suspicion of mail fraud, The Orange County Register has learned.

U.S. Attorney's Office spokesman Thom Mrozek confirmed Saturday afternoon that Kinde Durkee of Burbank-based Durkee and Associates, was arrested by the FBI on a criminal complaint filed by the U.S. Attorney's Office in Sacramento. Special Agent Steve Dupre of the bureau's Sacramento office said she was arrested in connection with her position as a campaign treasurer.

State Sen. Lou Correa told the Register on Saturday afternoon that he was called by the FBI late Friday night and told that Durkee had been arrested and that he is a likely victim along with many, many other victims. The Santa Ana Democrat said he believes he has lost hundreds of thousands of dollars in campaign funds.

This is clearly a sense of betrayal of someone I have trusted for a number of years, said Correa, who has used Durkee as his campaign treasurer since 1995. This is a punch straight to the gut.

Federal Election Commission records show that Durkee is the treasurer for Feinstein and Sanchez, who could not be reached Saturday. California Secretary of State records show she currently serves as the treasurer for at least 115 state-level committees. Those committees include campaign accounts for Solorio, D-Santa Ana; Assemblymen Gilbert Cedillo, D-Los Angeles, and Roger Hernandez, D-Baldwin Park; State Sens. Ted Lieu, D-Torrance and Curren Price, D-Los Angeles; Los Angeles City Councilman Paul Krekorian; and former Orange County lawmaker Tom Umberg.

Durkee also oversaw the political-action committees of the Democratic Party of Orange County and the Democratic Foundation of Orange County, among others.

Durkee and Associates says on its website: Since 1972 we have worked for 5 presidential campaigns, 4 gubernatorial campaigns, numerous senate, congressional, state and local candidates, initiatives, political action committees and many non-profit associates and small businesses.

Durkee has had enforcement actions taken against her four times by the state Fair Political Practices Commission, primarily for failing to report transactions or information. She has also received at least a half a dozen enforcement warning letters from the commission and stipulated to a violation before the City of San Diego Ethics Commission.

Mrozek said in an email that he expects Durkee to make her initial court appearance Tuesday afternoon, most likely in Santa Ana, but he won't know for certain until Tuesday morning.