"Was it the real estate downturn, or were people misled into a risky investment scheme?"

That's the lead sentence from today's article on the falling out between Dan Harkey -- husband of Assemblywoman Diane Harkey -- and a number of investors in his Pointe Center Financial company, and it's the million dollar question.

KNBC's segment is fairly worthless as a guide to the truth on this issue -- which is no surprise given it is a local TV news segment. The headline is dishonest, to boot. Then again, it's local TV news.

After reading the LA Times story and talking to some friends with financial acumen like Allen Bartlett, this has all the earmarks of real estate investment venture that is suffering from the implosion of the real estate market -- simple as that.

PCF deals in interest-deed investments -- essentially functioning as a bank, and attempting to make money like a bank does. I feel sorry for the folks who are upset that in at least some instances, they own foreclosed properties rather than reaping bid returns from real estate developments -- but then again, they aren't exactly the only Americans whose investment portfolios have suffered.

As to the question of whether PFC money funded Diane Harkey's Assembly ands Senate campaigns? I don't know. And neither to the group of PCF investors who are raising that question. Diane Harkey says the $1.1 million she put inot her campaign is her own, and thus far no one has provided evidence to the contrary.

Obviously, Dan harkey and this group of investors will continue to tangle, and hopefully the truth will eventually out. In the meantime, the primary reason this is even in the news if because Dan harkey is married to an Assemblywoman.