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. 

Durkee, who appears to have signature authority over more than 400 bank accounts, including those for political campaigns, allegedly moved "substantial" sums of money from client campaign committees to her firm's accounts or other campaign accounts, Coleman said in the affidavit. 

Durkee also allegedly spent funds from clients' accounts to make her firm's payroll and to pay for her mortgage, her American Express bill, her mother's assisted living facility expenses and other personal expenses, Coleman's affidavit said. 

In an interview with the FBI on September 1, "Ms. Durkee admitted that she had been misappropriating her clients' money for years, and that forms she filed with the state were false," Coleman wrote. 

Durkee and her attorney could not be reached by CNN for comment on Tuesday. 

In the wake of the charges, U.S. Rep. Susan Davis, D-California, has accused Durkee of stealing "upwards of $250,000 in campaign funds," according to a letter that Davis sent to her supporters on Saturday. Durkee was also Davis' campaign fund manager, a Davis spokeswoman said. 
Who has been accused?
Of what?
How much did she steal?
From where?
What did she use it for?
What else?
How many accounts did she have access to?
How long had this been happening?
What else is she accused of doing?
Who said this?
Kinde Durkee
Kinde Durkee, whose Durkee & Associates firm is based in Burbank, California, has been charged
mail fraud
been charged with two counts of mail fraud
$677,181
r charged with defrauding a state legislator of $677,181
campaign funds
misappropriation of $677,181 in campaign funds
her firm's payroll
spent funds from clients' accounts to make her firm's payroll 
her bills
to pay for her mortgage, her American Express bill, her mother's assisted living facility expenses and other personal expenses
more than 400
who appears to have signature authority over more than 400 bank accounts
for years
Ms. Durkee admitted that she had been misappropriating her clients' money for years
filing false disclosure reports
Durkee is accused of filing false disclosure reports
Reginald Coleman
according to an affidavit by FBI Agent Reginald Coleman