Cunningham scandal
| Cunningham scandal |
| A U.S. political scandal in which government contracts were obtained with bribes to Congressman Randy "Duke" Cunningham. |
|
The Cunningham scandal is a U.S. political scandal in which defense contractors paid bribes to members of Congress and officials in the U.S. Defense Department, in return for political favors in the form of federal contracts. Most notable amongst the recipients of the bribes was California Congressman Duke Cunningham who pleaded guilty to receiving over $2.3 million in bribes. The primary defense contractors were Mitchell Wade (owner of MZM) and Brent R. Wilkes (owner of ADCS Inc.).
In June 2005 it was revealed that Wade had bought Cunningham's house in Del Mar for $1,675,000. A month later, Wade placed it back on the market where it remained unsold for 8 months until the price was reduced to $975,000. Cunningham was a member of the Defense Appropriations Subcommittee; soon after the purchase, Wade began to receive tens of millions of dollars' worth of defense and intelligence contracts.
Later in June, it was further reported that the yacht that Cunningham lived on while he was in Washington was owned by Wade, and that Cunningham was paying only for maintenance, not rent. The Federal Bureau of Investigation launched an investigation regarding the real estate transaction. Cunningham's home, MZM's Corporate Offices and Wade's home were all simultaneously raided by a number of federal agencies with warrants on July 1, 2005.
...
Wikipedia