LOS ANGELES — California regulators are cracking down on a company at the center of a scandal over hundreds of thousands of dollars in missing campaign funds.

The state Board of Accountancy said Tuesday it issued a "cease and desist" order against Burbank, Calif.-based Durkee & Associates to stop the firm from conducting accounting business.

Kinde Durkee — who runs the firm — was arrested on suspicion of fraud after federal prosecutors said she looted nearly $700,000 from a state Assembly campaign.

Durkee has served as campaign treasurer for a number of Santa Monica-based campaigns and politicians including City Councilman Terry O’Day and Santa Monicans for Quality Government.

Other Democratic officials — including U.S. Sen. Dianne Feinstein — suspect they are victims.

The company website says the firm provides accounting services, but board spokeswoman Lauren Hersh says the company is not registered with the board, as required.

She says Durkee is not a registered accountant.

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