Published: Jul 1, 2005 SAN DIEGO (AP) - Federal agents on Friday searched the California home of U.S. Rep. Randy "Duke" Cunningham, along with the yacht in Washington, D.C., where he has been living, the FBI said.
Posted on 07/01/2005 4:23:27 PM PDT by TheOtherOne
FBI Searches Home of California Congressman at Center of Federal Probe
Published: Jul 1, 2005 SAN DIEGO (AP) - Federal agents on Friday searched the California home of U.S. Rep. Randy "Duke" Cunningham, along with the yacht in Washington, D.C., where he has been living, the FBI said.
Agents from the FBI, Internal Revenue Service and the Defense Department's criminal investigative service also searched the Washington offices of a defense firm whose founder bought the congressman's previous home, leading to a federal investigation, said Debra Weierman, a Washington FBI spokeswoman.
Cunningham, 63, has said that he showed poor judgment in selling the house, but he acted honestly and predicted that an investigation would prove that.
On Friday, a Cunningham spokesman said he did not know anything about the raids and referred all inquiries to the congressman's attorney, K. Lee Blalack, who did not immediately return a call for comment.
The former Navy "Top Gun" fighter pilot and eight-term Republican congressman sold his home in November 2003 to Mitchell Wade, a campaign contributor and close friend.
Wade paid $1.7 million for the 3,826-square-foot house in wealthy, seaside Del Mar, just north of San Diego. He put it back on the market soon after and eventually took a $700,000 loss when he resold it in October 2004. During that span, home prices in San Diego County rose an average of nearly 25 percent.
Meanwhile, Wade's little-known company, Washington, D.C.-based MZM Inc., was increasing its federal contracting business. In 2004, MZM tripled its revenue and nearly quadrupled its staff, according to the company's Web site.
Cunningham is a member of the House Appropriations Defense Subcommittee and the Permanent Select Committee on Intelligence, both of which oversee the kind of classified intelligence work MZM does for the military.
The U.S. Attorney's Office in San Diego is investigating the house sale with help from the FBI. Earlier this week, Cunningham's office disclosed that a federal grand jury has subpoenaed documents from him, though they declined to elaborate further.
Cunningham has also lived part-time on Wade's boat, docked on the Potomac River. He has said he agreed to pay dock fees and service and maintenance costs to Wade in lieu of rent to stay there. Living on Wade's boat without paying would violate congressional ethics rules.
The Defense Department halted orders this month on a five-year contract that provided MZM with $163 million of revenue over its first three years after the department's inspector general found that it did not satisfy rules on competitiveness.
This week, MZM announced that James King, a retired three-star Army general, was taking over as president and chief executive - a role held for years by Wade, who founded the company in 1993.
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Associated Press Writers Erica Werner and Mark Sherman in Washington contributed to this report.
AP-ES-07-01-05 1831EDT
Custom named, no less!
http://www.freerepublic.com/focus/f-news/1430027/posts
Cunningham, in his statement, also denied any impropriety in living aboard Wade's 42-foot yacht while in Washington.
... the lawmaker said he has been living on the boat since April 2004. The yacht is named Duke-Stir, an apparent play on Cunningham's nickname.
Cunningham estimated that he had paid "$8,000 in dock fees and well over $5,000 for service and maintenance" during the 13 months he has lived on the yacht.
My mistake. It was the contractor that took the loss.
Oops! My mistake it was the contractor who took the loss!
"The real problem is, is time....How many rookie cops ever got bagged for corruption, as opposed to seasoned veterans?"
You are sure right about that. But it is kind of a relief to know that one can still pay TOO MUCH for a house these days, any house, any house at all.
You are sure right about that. But it is kind of a relief to know that one can still pay TOO MUCH for a house these days, any house, any house at all.
I hear the prices are pretty reasonable in Philadelphia. Other than that, I am not sure what you mean.
Many of the commentators are too quick to condemn. Here are some facts that seem to be missing from the national press:
– The price received for the house was determined by a local real estate agent. The fact that the house was later sold for less is irrelevant. Obviously the agent needs to be questioned as to how the price was determined, but absent of any collusion with the Congressman, there is nothing wrong.
– What is the rental value of living on a yacht moored at the dock? Is it greatly in excess of what was paid? What is the size of the living quarters?
– Finally, what power does a congressman have in awarding Government contracts. Everyone can get some assistance from their Congressperson in dealing with the Government, but awards of contracts are made by the Executive Branch, not Congress.
I am not saying that the Congressman is innocent; however, he should be given the benefit of the doubt until an ethics or other violation is proven. Nothing mentioned in the article is a definite violation.
The 'real estate agent' is also a freind of Duke's.
"What is the rental value of living on a yacht moored at the dock? Is it greatly in excess of what was paid? What is the size of the living quarters?"
He is living rent free on a yacht provided for a minimal fee by the owner of a company he doles our government money too.
Finally, what power does a congressman have in awarding Government contracts. Everyone can get some assistance from their Congressperson in dealing with the Government, but awards of contracts are made by the Executive Branch, not Congress.
The commitees he serves on directly do issue defense contracts, and in this case a no-bid contract to his 'long time friend'.
THE WHOLE THING STINKS. read up on it.
("awards of contracts are made by the Executive Branch, not Congress." This little statement is dead wrong, by the way.)
Tuesday, June 14, 2005 By Ken Silverstein and Richard Simon, Los Angeles Times
WASHINGTON -- When Congress passed the $417-billion Pentagon spending bill last year, Rep. John P. Murtha, the top Democrat on the House defense appropriations subcommittee, boasted about the money he secured to create jobs in his Pennsylvania district.
But the bill Murtha helped write also benefited at least 10 companies represented by a lobbying firm where his brother, Robert "Kit" Murtha, is a senior partner, according to disclosure records, interviews and an analysis of the bill by the Los Angeles Times.
Clients of the lobbying firm KSA Consulting -- whose top officials also include former congressional aide Carmen V. Scialabba, who worked for Rep. Murtha for 27 years -- received a total of $20.8 million from the bill.
One of the clients, a small Arkansas maker of military vehicles, received $1.7 million, triple its total sales for 2004. Several other clients received money that represented more than half of their annual sales from last year.
KSA directly lobbied the congressman's office on behalf of seven companies that received money from the bill. And a defense contractor based in Pennsylvania said he hired KSA on the recommendation of a top Murtha aide.
Kit Murtha said in a phone interview that he did not lobby his brother's office and that he saw no problem working for a firm that did.
Most of KSA's defense clients hired the firm in hopes of securing funding from Rep. Murtha's subcommittee, according to lobbying records and interviews. And most retained the firm after Kit Murtha became a senior partner in 2002.
Oh great, now you got me cheering for the Latimes to keep up the heat. Sounds like a rotten deal, they need to keep looking into Murtha.
My point here was that there are not enough facts to come to a conclusion. The fact that the real estate agent was a friend of Duke's again means nothing. Duke has many friends in the district. There is a proper procedure for an appraisal and I have seen no evidence as to whether a proper appraisal was or was not done.
The article says that Duke paid something for use of the yacht moored at the dock. I have seen no evidence that the payment was or was not the fair rental value.
As a member of the subcommittee, Duke could have some influence on the defense procurements in question, but I am certain that any contracts were awarded by the Executive Branch, not the Congress.
Bottom line: Even if all items reported are factual, no violations are proven, that's why there is an investigation.
You haven't been reading then. This is far from the first story on this issue. I suggest you read up before you start defending him with specifics that you don't know about or. He paid about $13,000 for a year living on the boat. His real estate 'friend' set the price and then without listing it he sold it to his buddy, who resold it within 6 months at a loss and never used it. And yes, I'm sure he has lot's of friends, seems odd that he used them all on his profit deals.
P.S. Welcome to FR.
I agree with you, but it is amazing that the left can get away with this kind of stuff without having to step down. I still think our side has to do what is right. That is what makes us the RIGHT party.
THE WHOLE THING STINKS. read up on it.
Not only stinks, there should be an immediate investigative response to anyone that has access, or issues any government contracts, above and beyond what is now called for.
Where there is smoke there is fire. Anyone that has a hand in delegating contracts should be investigated fully. No one should be left out. Reps and Dems. These audits/investigations ought to be conducted year round, except now they should make the investigators liable for criminal and civil errors and omissions.
Anyone involved in these contracts, regardless of party, should be under constant investigation and surveillance. Corruption in government should have been eliminated long ago. With computers and electronic technology, there is really no excuse for using tax payer money to criminally benefit individuals or companies. Go after them like we would terrorist.
I'll go one further, all politicians, and their activities should be audited routinely and they should be randomly subject to surveillance, and drug tests. Investigate the investigators, and make the investigators responsible. Change investigators frequently. Those that want to make careers out of politics, should be subject to the strictest, most in depth investigations.
Just to add a small bit to it.... he's a pompous ass. Not very well liked from the very community he came from. He did his job well as a fighter pilot, not so well as a politician, current events not even considered. Just my opinion as someone who knows his exploits well.
When contracts are involved, no private data bases or computers. All should be monitored routinely and randomly audited.
The politicicans have no problem restricting/limiting citizen rights, and conducting investigations on citizens, so what is good for us, is even better for them.
I agree. Start protecting my rights, not infringing them.
Waiting for federal agents to raid the home of Sandy Berger.
From your keyboard to God's ears.
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