John Ransom

Well they finally did it to themselves.

At least now, and at least in one state, Democrat politicians are starting to feel the effects of the type of accounting fraud they committed on the country for the last three years.  

As the Obama “It’s-not-my-fault” Reelection Tour rumbles westward spewing diesel-powered and politically enhanced particulate matter, charges of fraud are overhanging the Democrats’ fall campaign in California.

But the charges aren’t the familiar “I see dead people voting” scams that usually accompany left-leaning races.

Instead they are fraud charges of the Madoff kind.

California Democrat uber-finance guru, Kinde Durkee, apparently has been practicing accounting methods of the Solyndra kind. As a result, she’s been accused of fraud for potentially misappropriating as much as $7.5 million in campaign funds for as many as 53 liberal candidates and issues committees in the Golden State.

The amount is the difference between what California Democrats says has been reported by the bank, and the amount that was reportedly raised by the various campaigns that Durkee was treasurer for. The FBI said the amount however is more likely in the “hundreds of thousands of dollars,” range, not millions.

“While the extent of the losses isn't yet clear,” reports Reuters, “the coffers of dozens of Democratic politicians have been frozen, prompting the crippled campaigns to ask the California Fair Political Practices Commission to permit further donations from contributors who have already given the maximum.”

Still, because the money under Durkee’s control was commingled, it’s been impossible for anyone to determine how much money belongs to any given candidate. The accounts have been frozen and that’s left Democrat candidates and committees doing what they do best: screaming for more money and asking for the suspension of the campaign finance limits that they so favor. Laws for thee, but not for me.

California Senator Diane Fienstein has been forced to loan her own campaign $5 million and is doing two other things Democrats are adept at: The Feinstein campaign has disclaimed all responsibility and they have sued First California Bank for “for aiding and abetting Kinde Durkee,” says the Courthouse News Service (CNS).

John Ransom

John Ransom’s writings on politics and finance have appeared in the Los Angeles Business Journal, the Colorado Statesman, Pajamas Media and Registered Rep Magazine amongst others. Until 9/11, Ransom worked primarily in finance as an investment executive for NYSE member firm Raymond James and Associates, JW Charles and as a new business development executive at Mutual Service Corporation. He lives in San Diego. You can follow him on twitter @bamransom.

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