Health & Fitness
Fateful Week for the Harkeys of Dana Point
Once the epitome of the Dana Point power couple, Dan Harkey, wealthy owner of a now-bankrupt trust deed company, and his wife Assemblywoman Diane Harkey head to court next week.
The article recently in The Desert Sun about the sale of the faded and defunct 154-acre Palm Springs Country Club may have been a glimmer of hope to nearby residents bothered by the years-long battle of ruin, blight and vermin.
The City of Palm Springs had to step in at one point to clear the property which became decrepit shelters for the homeless.
As someone who is reluctantly familiar with the former owner, the now-bankrupt Point Center Financial, I wish to point out a few facts.
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The company is owned by Dan Harkey, husband of Republican Assemblywoman Diane Harkey of Dana Point. They reside at glamorous Ritz Cove in a spacious home overlooking the ocean, with an elevator that takes them down to their garage full of collector cars.
Dan Harkey heads to court in Santa Ana next week, charged with fraud, financial Elder Abuse and running a Ponzi Scheme. He is being sued by 80 of his investors for $42,000,000.
Find out what's happening in Laguna Niguel-Dana Pointwith free, real-time updates from Patch.
Diane Harkey is running for the Board of Equalization.
Investors paid $19,000,000 for the property, just east of the airport, assured that all building legalities were taken care of, the price was fair and there was a demand.
The club sold for $1,000,000. Investors got about 5 cents on the dollar. In comparison, a fixer-upper in Palm Springs is about $200,000.
Mr. Harkey once proclaimed himself the "godfather of trust deeds." He now blames "the economy."
Yet the Escena complex, a mile away, is a recent and great success, boasting a popular restaurant and attractive residences. No rats. No blight.
However, Point Center made gigantic fees from the country club deal. It has consistently shown a pattern of handing a borrower a seven and eight-figure check after collecting fees and just before the borrower declares bankruptcy.
This pattern is seen from San Diego at the dramatic condo tower Mi Arboleto at Balboa Park, a total loss of $13,000,000 to Phoenix at the failed Chandler building, another eight-figure loss.
Time will tell if Mr. Harkey will be convicted of running a Ponzi scheme. If he is, California residents should be warned that Madoffs are everywhere.
Writer Sipolski is one of the plaintiffs and the author of the memoir-based "Too Early for Flowers: The Story of a Polio Mother."
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