Embezzled campaigns could face sanctions

AP News

9/26/2011 4:08:27 PM - AP News
WASHINGTON (AP) — Talk about adding insult to injury. The campaigns for several Democratic lawmakers reeling from the arrest of their campaign treasurer face the prospect of financial penalties themselves.Federal prosecutors earlier this month accused Kinde Durkee of siphoning nearly $700,000 from a California assemblyman. She told authorities she had been misappropriating money from her many Democratic clients for years.Her client list had several hundred names on it, including Sen. Dianne Feinstein and at least four U.S. representatives.While the campaigns believe they were victims, the thefts could also mean they failed to accurately disclose disbursements and cash-on-hand balances to the Federal Election Commission.Kenneth Gross, a Washington-based attorney, said that the lawmakers' campaigns could be penalized if they failed to put in place safeguards that are designed to prevent embezzlement.