By JOHN BRESNAHAN & JONATHAN ALLEN | 9/9/11 9:54 PM EDT

The California campaign treasurer at the center of a burgeoning finance scandal is to be released on a $200,000 bond under strict conditions that she not leave the region or involve herself in the affairs of her company or its clients.

Kinde Durkee, who served as treasurer for hundreds of politicians and political committees, including several members of Congress, has been accused of defrauding state Rep. Jose Solorio out of $677,000.

Rep. Loretta Sanchez (D-Calif.), who used Durkee as her treasurer, is missing hundreds of thousands of dollars from her reelection account. Her chief of staff, Adrienne Elrod, told POLITICO on Thursday that the account, which had a balance of more than $378,000 at the end of June, has now nearly been wiped out.

Durkee has not been accused of any wrondoing in connection with Sanchez’s missing funds, but federal authorities allege that Durkee moved money from one of Solorio’s accounts into an account she controlled and then wrote a check for $125,000 to Sanchez’s campaign shortly before last November’s congressional elections.

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