September 16th, 2011, 5:14 pm · posted by BRIAN JOSEPH, Sacramento Correspondent

The California bank where Kinde Durkee appears to have done most of her clients’ banking has decided to go to court to untangle a knot of mixed up funds.

In a letter addressed to “Durkee Client,” Edmond R. Sahakian, executive vice president of First California Bank, writes that while the bank has been “working diligently” to determine the balances on the many accounts Durkee clients maintained with the bank, “the more we investigated the situation, the more it appears that Durkee had commingled funds belonging to various different campaigns and organizations and had made repeated transfers between accounts on which Durkee had signing authority.”

The bank now believes that there is a “very high likelihood that the balance credited to any given account did not represent accurately the funds, if any, actually belonging to the campaign or organization named on the account,” Sahakian writes. “In certain circumstances, it is apparent that account balances contained funds that had previously been credited to non-related accounts. These conditions appeared to be pervasive in the Durkee controlled accounts.”

Thus faced with such “grave uncertainties,” Sahakian says that First California has decided to file an action in Los Angeles Superior Court, which “will then be in a position, over time, to determine the specific amounts that are owed to each of the campaigns, candidates and organizations that had utilized the services of Durkee.”

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