Bank pays $1.75M over former Democratic campaign treasurer likened to Bernie Madoff
SAN FRANCISCO (AP) — A Beverly Hills-based bank has paid $1.75 million to settle allegations that a bank it acquired facilitated embezzlement by failing to monitor transactions by a woman whom a prosecutor likened to the Bernie Madoff of campaign treasurers.
Former Democratic campaign treasurer Kinde Durkee pleaded guilty to five counts of mail fraud in 2012 and was sentenced to more than eight years in federal prison for defrauding high-profile clients, including U.S. Sen. Dianne Feinstein, in a case that a judge said tampered with the electoral process.
U.S. Attorney Phillip Talbert said Friday that Pacific Western Bank paid $1.75 million to resolve allegations that First California Bank, which PacWest acquired in 2013, facilitated Durkee's embezzlement by failing to properly monitor her accounts.
The government said the bank ignored obvious warning signs that Durkee was stealing, allowing the fraud to continue.
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