State Assemblywoman Diane Harkey (R-Dana Point), who is also running for the California State Board of Equalization in the upcoming November General Election, will likely have part of her state wages garnished due to a court order, after state Controller John Chiang turned down her request to avoid the deduction, according to the Voice of OC.
In a letter to Chiang, the Dana Point Republican said she is legally separated from her husband Dan Harkey and so shouldn’t be held liable for his debts. The garnishment arises from an unpaid $12.5 million judgment against her husband, and is part of his former investors’ strategy to collect money through the couple’s community property, according to the O.C. Register.
There has been a $12.5 million breach of fiduciary responsibility judgment pending against Dan Harkey and his bankrupt development investment company Point Center Financial since July 2013. Plaintiffs have been unable to collect from either Harkey; Diane managed first to get herself dismissed from the lawsuit, and now she claims to have dismissed herself from her marriage, claiming to have separated from her husband, according to the OC Weekly.
Harkey successfully petitioned to be removed from the original suit against Dan Harkey, and his company, Point Center Financial. The court determined that she was not involved in her husband’s business. But that doesn’t preclude her possible liability to creditors, according to California law, according to the O.C. Register.
After an almost four-month trial in Orange County Superior Court, Dan Harkey was found guilty of breaching his “fiduciary obligation” to his clients and doing so with “malice, fraud and oppression,” said attorney David Grant of Irvine. He was ordered to pay $4.5 million, according to the Desert Sun.
Harkey, who was found not guilty on other charges, has since filed suit against a retired man who was crippled by polio as a child, and others, alleging malicious prosecution and breach of indemnity agreement, according to the lawsuit filed in Orange County Superior Court on July 17.
The suit alleges Sipolski and others “conceived a malicious scheme in or about 2007-2008 and continuing to date to destroy Plaintiff’s (Harkey’s) credibility and reputation in the private lending business.”
Harkey is running in November against Democrat Nader Shahatit, an auditor with the tax board. Shahatit said he plans minimal fundraising and has declined to criticize Harkey, saying he is running a positive campaign. He might want to reconsider that. He needs to hammer Harkey or we are going to be stuck with her for several more years.