Los Angeles (CNN) -- A prominent California Democrat campaign fund manager charged with defrauding a state legislator of $677,181 is in settlement negotiations with federal prosecutors, a law enforcement source said Tuesday. Kinde Durkee, whose Durkee & Associates firm is based in Burbank, California, has been charged with two counts of mail fraud regarding the alleged misappropriation of $677,181 in campaign funds belonging to California Assemblyman Jose Solorio, a Democrat whose office is based in Anaheim, authorities said. The law enforcement source asked for anonymity because the source wasn't authorized to speak publicly about the negotiations. Durkee is accused of filing false disclosure reports to hide the misappropriations, according to an affidavit by FBI Agent Reginald Coleman.
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Kinde Durkee is a prominent campaign fund manager for California Democrats
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She has been charged with two counts of mail fraud
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She is accused of misappropriating $677,181 in campaign funds
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The FBI accuses her of spending other clients' money on personal expenses
"The investigation is looking at all of the accounts of clients of Kinde Durkee," including those of elected @placeholder, Horwood said.