Just last week, Harkey launched a separate site——to take on Charton’s lawsuit instead of the man behind it. So far, it simply contains link to articles, pro-Harkey testimonials from friends and investors, plus a letter from Harkey that curtly rebuts some of the allegations against his company. But even that starts out with a personal jab: “Lloyd Charton is a disgruntled investor who happens to be my neighbor.”

Over the phone, Harkey maintains that all the allegations against him are false, including the assertion that he frequently bragged about bankrolling his wife’s political career with a million dollars of investor money. He says that the lawsuit is just a ploy cooked up by Dana Point gadflies who tried (and failed) to recall Diane as the city’s mayor in 2007, including former City Councilman James Lacy and local businessman Jerry Grunor. Grunor says he’s not involved. Lacy didn’t return calls to his law firm from the Weekly.

Charton insists that politics has nothing to do with the lawsuit, and he has a familiar term for Harkey’s defense: “Bullshit.”

“When the Department of Real Estate gets done with their investigation, and the SEC, then Dan Harkey will be paying the price for his misdeeds,” Charton says. “When that happens, it will have nothing to do with whether Lloyd Charton yelled at a neighbor.”

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