Cali congressman admits to taking bribes

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Published - Nov 29 2005 07:49AM CST || AP

SAN DIEGO(AP) After months of insisting he had done nothing wrong, Rep. Randy "Duke" Cunningham tearfully acknowledged taking $2.4 million in bribes, saying: "The truth is I broke the law."

The eight-term Republican and former Vietnam fighting ace pleaded guilty to graft Monday and resigned, admitting he took money mostly from defense contractors in exchange for government business and other favors.

"In my life, I have had great joy and great sorrow. And now I know great shame," a tearful Cunningham said after the plea. "I can't undo what I have done but I can atone."

But Cunningham, who could get up to 10 years in prison at sentencing Feb. 27 on charges of conspiracy to commit bribery and fraud, and tax evasion, may not be the only person ensnared in the case. Prosecutors have indicated they have more than him in mind.

"There's more work to be done," Assistant U.S. Attorney Phillip Halpern said Monday. Cunningham has promised to cooperate.

Gov. Arnold Schwarzenegger's office will have 14 days to set a date for an election to replace Cunningham. The election must be held within 120 days after that. The district, just north of San Diego, is heavily Republican.

In the plea, Cunningham, 63, acknowledged working with four co-conspirators to take bribes from defense contractors and others. Prosecutors said the bribes were paid in a variety of forms, including checks totaling more than $1 million, cash, antiques, rugs, furniture, yacht club fees and vacations.

Prosecutors said he used his influential position as a member of a House Appropriations subcommittee to secure defense contracts worth tens of millions of dollars for those who bribed him.

Cunningham, a former Navy pilot, was known on Capitol Hill for his interest in defense issues and occasional outbursts. He gave patriotic speeches on the House floor, including one in favor of a constitutional amendment to ban flag burning.

The case began when authorities started investigating Cunningham's sale of his Del Mar house to defense contractor Mitchell Wade for $1,675,000. Wade sold the house nearly a year later for $975,000 _ a loss of $700,000 in a hot real estate market.

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QUOTEThe congressman already had announced in July _ after the investigation became public _ that he would not seek re-election next year. But until he entered his plea, he insisted he had done nothing wrong.

The 33-page guilty plea did not name the alleged conspirators, but details such as business addresses and occupations made some of their identities apparent. One was Wade, who was the former president of MZM Inc., a Washington, D.C., company that does classified intelligence work for the military.

In addition to buying Cunningham's home at an inflated price, Wade let him live rent-free on Wade's yacht, the Duke Stir. MZM Inc. also donated generously to Cunningham's campaigns.

The documents suggest another conspirator was Brent Wilkes, an associate of Wade's who headed a defense contracting company called ADCS Inc. that also provided campaign cash and favors to Cunningham while reaping valuable contracts.

Another co-conspirator appears to be Thomas Kontogiannis, a New York developer. Cunningham wrote to prosecutors in 2000 on Kontogiannis' behalf when the developer was under investigation in a bribery and kickback scheme involving school computer contracts. Kontogiannis ultimately pleaded guilty to fraud.

Attorneys for Wilkes and Wade declined to comment. Kontogiannis' attorney did not return a call.

Cunningham admitted in the plea agreement to receiving $1.025 million to pay down the mortgage of a five-bedroom, eight-bathroom Spanish colonial estate he bought with money from the Del Mar home sale.

He also acknowledged receiving $200,000 as a down payment for an Arlington, Va., condo; $13,500 to buy a Rolls-Royce; $6,632 for a leather sofa and bed; and $2,081 for his daughter's graduation party.

Cunningham was allowed to remain free while he awaits sentencing. He also agreed to forfeit his mansion, more than $1.8 million in cash, and antiques and rugs.

He is the first congressman to leave office amid bribery allegations since 2002, when former Rep. James Traficant, D-Ohio, was sentenced to eight years after being convicted of racketeering and accepting bribes.

The plea comes amid a series of GOP scandals: Rep. Tom DeLay of Texas had to step down as majority leader after he was indicted in a campaign finance case; a stock sale by Senate Majority Leader Bill Frist is being looked at by regulators; and Vice President Dick Cheney's chief of staff was indicted in the CIA leak case.

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I bet he doesn't get more than a year in Fed time...