airtwardo 6 #1 November 28, 2005 Say it aint's SO!! 9:56 a.m. November 28, 2005 SAN DIEGO – Rep. Randy "Duke" Cunningham pleaded guilty Monday morning to conspiring to take bribes in exchange for using his influence to help a defense contractor get business He also pleaded guilty to one count of income tax evasion. U.S. District Larry A. Burns scheduled Cunninghman's sentencing for Feb. 27. Cunningham, an eight-term Republican congressman, had been under scrutiny for months for his ties to defense contractors and their officials. Federal officials launched investigations after The San Diego Union-Tribune and Copley News Service reported in June that a defense contractor who won tens of millions of dollars in Pentagon contracts had taken a $700,000 loss after purchasing Cunningham's Del Mar house. Cunningham sold the house for $1.675 million in November 2003, but the buyer, defense contractor Mitchell Wade, never moved in and almost immediately put it back on the market. Wade sold it 261 days later for $975,000. Prosecutors contend the overpayment was a bribe. The congressman, who sits on the House defense appropriations subcommittee, used the proceeds of the sale to buy a $2.55 million house in Rancho Santa Fe, which he has since put up for sale. Cunningham, a former Navy Top Gun pilot, was first elected to Congress in 1990. The 63-year-old Republican represents a district that stretches from northern San Diego to Escondido and San Marcos and then along the coast from Carlsbad to Del Mar. He has vowed not to seek reelection and plans to retire next year, at the end of his term. His attorney, K. Lee Blalack, said Cunningham would speak to reporters outside the downtown San Diego Federal Court building at 11:30 a.m. Cunningham had insisted the real estate deal was independent of his efforts to help Wade win contracts. Wade's company saw its business soar over the past three years after it won an open-ended blanket-purchase agreement with the government. Cunningham initially downplayed his friendship with Wade, saying it was no different than his relationship with other CEOs. But then, 11 days after the story broke, Cunningham released a three-page statement to reporters in which he acknowledged he and Wade had been friends for many years and said that he had showed "poor judgment" in the real estate transaction. As weeks passed, more revelations emerged and the FBI and a federal grand jury launched probes into Cunningham's financial dealings. News reports revealed that Wade provided Cunningham the use of his 42-foot yacht, which was named Duke-Stir, to live aboard on the Potomac when Cunningham was in Washington. Cunningham said he paid dock fees and some maintenance costs for the boat. It was then disclosed that Cunningham made roughly a $400,000 profit by selling a boat he lived on from 1997 to 2002 to a businessman convicted in a bid-rigging scheme. The Long Island businessman who bought the Kelly C from Cunningham for $627,000 also said a mortgage company owned by his relatives loaned money to Cunningham for two real estate transactions. The businessman, Thomas Kontogiannis, said he paid off one of those loans as partial payment for the Kelly C purchase. Kontogiannis said Cunningham offered to help him explore the possibility of a presidential pardon and recommended two or three lawyers to talk to, but he never pursued the pardon. Cunningham's relationship with a second defense contractor, ADCS Inc., also came under scrutiny. In mid-August, federal regulators seized documents from ADCS's Poway headquarters and raided company president Brent Wilkes' home. Wade formerly worked for ADCS in the Washington, D.C. area. Like MZM, ADCS won millions of dollars worth of government contracts while making significant donations to Cunningham and other members of the defense subcommittee. ADCS, or Automated Document Conversion Systems, specializes in scanning documents so they can easily be indexed and cross-referenced. The subcommittee repeatedly penciled in funding for projects involving the company, even though the Pentagon had not requested the money. Since 1997, Wilkes and other ADCS insiders contributed more than $600,000to political campaigns, mostly giving funds to members of the Appropriations and Armed Services committees. Cunningham and his American Prosperity politicalaction committee received $53,500 in donations. The Union-Tribune reported in early August that Cunningham alsorepeatedly used ADCS' corporate jet on campaign-related trips, including ahunting trip in Idaho and a golf tournament in Hawaii. House MajorityLeader Tom DeLay also flew on the jet. Cunningham said he paid for those flights. On July 14, Cunningham held a news conference to announce he would not seek a ninth term. "I fully recognize that I showed poor judgment when I sold my home in DelMar to a friend who did business with the government," Cunningham told reporters. "I should have given more thought to how such a transaction might look to those who don't know me. I have spent an entire life building a reputation of integrity and trust. It pains me beyond words that I have jeopardized your trust." Cunningham also told reporters that he planned to sell his Rancho Santa Fe house and give a portion of the profit to three local charities. But government lawyers moved to block the sale a week later, filing a secret lawsuit that claimed Cunningham had bought the home with money obtained through bribery. Lawyers also put a notice in county property records advising potential buyers that the government intended to try to seize the property. Cunningham's attorney went to court in early September to ask the legal warning be removed from the home, but a federal judge rejected the request. The attorney said the warning is scaring off potential buyers. The investigation has also affected MZM, a company which has undergone major changes since the first stories broke. MZM's business began to take off three years ago when it wasdesignated the sole contractor for certain types of Army intelligenceprograms. Under the agreement, MZM became an exclusive contractor for the DefenseInformation Systems Agency, enabling the agency to order services from MZM. Its five-year contract with the Department of Defense was structured asan open-ended blanket-purchase agreement, with a $250 million spendinglimit. Since 2002, MZM received $163 million in federal contracts, primarily for Pentagon programs. Much of MZM's services under the agreement involved classified work on intelligence programs for the U.S. Army. Wade, the founder of MZM, resigned as president in late June. In a move officials said was unrelated to the Cunningham flap, the government announced in late June it no longer would allow federal agencies to buy from MZM under the sole contractor program. In August, MZM was sold to a private equity firm. Cunningham's use of a third boat also came under scrutiny. The Union-Tribune and Copley News Service reported that Brent Wilkes, the Poway defense contractor whose home and offices were raided in August by federal agents, allowed Cunningham use of a 14½ -foot fiberglass boat several years ago when it was docked near Cunningham's yacht in Washington, D.C. Critics contended it represented another example of the favors that some businessmen offered Cunningham and of his willingness to accept their offers. But Cunningham's attorney, K. Lee Blalack, said Cunningham simply accepted an offer to use the boat periodically ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
justinb138 0 #2 November 28, 2005 one down, a few hundred more to go. Quote Share this post Link to post Share on other sites
rehmwa 2 #3 November 28, 2005 Likely he'll only get voted in for a couple more terms before they find a decent replacement. Get him out. Find another. Which state does he represent? ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
airtwardo 6 #4 November 28, 2005 Won't be voted out....he resigned today, saying basically he knows he's about to to TIME! California. ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
rehmwa 2 #5 November 28, 2005 QuoteWon't be voted out....he resigned today, saying basically he knows he's about to to TIME! California. C YA - I'm sure he's all sad and repentent (now that he got caught). I'm sure he's really sad he let down the people of the US (now that he got caught). Can't he take a few more congressmen with him (reps or dems, cali or otherwise - I don't care). A house cleaning might be nice at the Capitol. ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
lawrocket 3 #6 November 28, 2005 San Diego's had a rough few months, politically speaking... My wife is hotter than your wife. Quote Share this post Link to post Share on other sites
billvon 2,435 #7 November 28, 2005 >San Diego's had a rough few months, politically speaking... Yep. Two council members found guilty in strippergate. A fraudulent election. A mayor who resigned. Chaos in the city council as they decided who would take over for who. Quote Share this post Link to post Share on other sites
airtwardo 6 #8 November 28, 2005 QuoteQuoteWon't be voted out....he resigned today, saying basically he knows he's about to to TIME! California. C YA - I'm sure he's all sad and repentant (now that he got caught). I'm sure he's really sad he let down the people of the US (now that he got caught). Can't he take a few more congressmen with him (reps or dems, cali or otherwise - I don't care). A house cleaning might be nice at the Capitol. *** Catch the CNN loop going....he's crying at the podium.... I met and spoke with Randy "Duke" a few times in the early 90's. I was working at a Defence Plant near San Diego, and he'd stop in looking for votes now & then... I really tried hard to like the guy, war hero etc....but even then he kinda hit me as the kind of guy that made ya wanna check to see if ya still had your watch after shaking his hand.... ....I need a light for my lantern....goin' looking for just ONE honest man! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
rehmwa 2 #9 November 28, 2005 Quote....I need a light for my lantern....goin' looking for just ONE honest man! oh, an optimist. We know how to deal with your kind. ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
billvon 2,435 #10 November 29, 2005 I must say that although what he did is certainly wrong, his pleading guilty and resignation without a fuss was pretty classy. His resignation letter: http://www.signonsandiego.com/news/politics/cunningham/images/051128cunningham_resign.pdf If only DeLay, Libby, Frist, Abramoff et al could show the same sort of class there would be a lot less nonsense going on in the government lately. Quote Share this post Link to post Share on other sites
Wopelao 0 #11 November 29, 2005 QuoteI must say that although what he did is certainly wrong, his pleading guilty and resignation without a fuss was pretty classy. His resignation letter: http://www.signonsandiego.com/news/politics/cunningham/images/051128cunningham_resign.pdf If only DeLay, Libby, Frist, Abramoff et al could show the same sort of class there would be a lot less nonsense going on in the government lately. Don't be short on the list either, Ted Kennedy, Bill Clinton, have long overdue resignations as well. Quote Share this post Link to post Share on other sites
billvon 2,435 #12 November 29, 2005 >Ted Kennedy, Bill Clinton, have long overdue resignations as well. Kennedy - agreed. Clinton could have ended the whole thing by saying "yeah, I did that chick on the desk of the Oval Office and it was great. You'd do it if you could, admit it." Well, the Moral Majority would have had a coronary, but I would have had a lot more respect for him. Quote Share this post Link to post Share on other sites
rickjump1 0 #13 November 29, 2005 QuoteI must say that although what he did is certainly wrong, his pleading guilty and resignation without a fuss was pretty classy. His resignation letter: http://www.signonsandiego.com/news/politics/cunningham/images/051128cunningham_resign.pdf If only DeLay, Libby, Frist, Abramoff et al could show the same sort of class there would be a lot less nonsense going on in the government lately.Very classy. Never met him, but admired him as a pilot. The system corrupts some and some corrupt the system.Do your part for global warming: ban beans and hold all popcorn farts. Quote Share this post Link to post Share on other sites
airtwardo 6 #14 November 29, 2005 I must say that although what he did is certainly wrong, his pleading guilty and resignation without a fuss was pretty classy. His resignation letter: *** "Did Wrong & Pretty Classy" I understand what you're saying Bill... But DAMN! In the end it's ALWAYS about the dollar. He KNEW what he was doing...and what the consequences would be if / when he got caught. Might have had the outline for that letter on file for YEARS! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
NickDG 23 #15 November 29, 2005 Anyone remember the name of the boat he stayed aboard while in DC. Seems prophetic now . . . NickD BASE 194 Quote Share this post Link to post Share on other sites
Guest #16 November 29, 2005 I'm really saddened by this. Duke was one of the people I really liked and respected because of his outstanding service record. It's a shame. mh ."The mouse does not know life until it is in the mouth of the cat." Quote Share this post Link to post Share on other sites
skycop 0 #17 November 29, 2005 Same here, One scary thing, I'm on the same page as Billvon here. I agree with the comments he made in his posts...... "Just 'cause I'm simple, don't mean I'm stewpid!" Quote Share this post Link to post Share on other sites
popsjumper 2 #18 November 29, 2005 He can always come to Atlanta...the metro area has a history of re-electing crooks....My reality and yours are quite different. I think we're all Bozos on this bus. Falcon5232, SCS8170, SCSA353, POPS9398, DS239 Quote Share this post Link to post Share on other sites
mnealtx 0 #19 November 29, 2005 QuoteHe can always come to Atlanta...the metro area has a history of re-electing crooks.... Maybe he should go to Chicago and try to usurp Hizzoner Daley.... Mike I love you, Shannon and Jim. POPS 9708 , SCR 14706 Quote Share this post Link to post Share on other sites
airtwardo 6 #20 November 29, 2005 QuoteSame here, One scary thing, I'm on the same page as Billvon here. I agree with the comments he made in his posts...... *** Not me. There's nothing classy about a thief in high office. I too have nothing but respect for his heroics in Vietnam, and back in the 90's he was getting work for the defence plants in his district...which in effect kept me working at a great job. But I find nothing 'noble' about his exit statement. He was caught and he knew it, the feds were pulling apart his life and it was going to do nothing but get worse. He tried denying any wrong doing at first, until he realized the extent of the investigation... The FBI had already fired a volley crippling his ship, was on his '6' with tone lock...he had two choices...stay with it and go down in a ball of flame, or eject. If being a 'hero pilot' were the only criteria for successful governmental service....Bush Sr. would have had two terms! ~ If you choke a Smurf, what color does it turn? ~ Quote Share this post Link to post Share on other sites
skycop 0 #21 November 29, 2005 I would'nt call it classy. He accepted responsibility and is ready to take his lumps. Sure the feds had him jammed-up hard, but there were no excuses or whining. Just goes to show that greed can get anyone, even decorated war heros. He co-sponsored the bill that enabled cops to carry concealed nationwide, he fought hard to get that bill passed. I HAD a lot of respect for the man, at least he went out not trying to fool anyone and called a spade a spade. That was point, I guess that makes him a little less of a turd. "Just 'cause I'm simple, don't mean I'm stewpid!" Quote Share this post Link to post Share on other sites
billvon 2,435 #22 November 29, 2005 >I HAD a lot of respect for the man, at least he went out not trying >to fool anyone and called a spade a spade. Yeah, that was my point. I don't respect him for what he did, but I do respect how he handled it (eventually.) Quote Share this post Link to post Share on other sites
rehmwa 2 #23 November 29, 2005 Quote>Yeah, that was my point. I don't respect him for what he did, but I do respect how he handled it (eventually.) Respect him less if he tried to weasel out of it (Pick Bush or Clinton for examples - depending on your politics) Respect him more if he made good 'before' getting caught. Respect him even more if he didn't succumb in the first place. But many might respect him most if he got away with it? Isn't that politics? ... Driving is a one dimensional activity - a monkey can do it - being proud of your driving abilities is like being proud of being able to put on pants Quote Share this post Link to post Share on other sites
billvon 2,435 #24 November 29, 2005 >But many might respect him most if he got away with it? Isn't that politics? Indeed. But I'm not a politician, so I have different definitions of what respectable is. Quote Share this post Link to post Share on other sites
markd_nscr986 0 #25 November 29, 2005 Too bad Someone that I looked up to and respected But looking on the bright side,if he moved to Louisiana he could still have a brilliant future in politics Marc SCR 6046 SCS 3004 Quote Share this post Link to post Share on other sites
