Rep. Randy ''Duke'' Cunningham, an eight-term congressman, pleaded guilty to graft and tearfully resigned Monday, admitting he took $2.4 million in bribes mostly from defense contractors in exchange for government business and other favors.
Investigators said Cunningham, a member of a House Appropriations subcommittee that controls defense dollars, secured contracts worth tens of millions of dollars for those who paid him off. Prosecutors did not identify the defense contractors by name.
Cunningham was charged in a case that grew out of an investigation into the sale of his home to a defense contractor at an inflated price.
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.
Prosecutors said the house purchase was part of Cunningham's guilty pleas.
In addition to buying Cunningham's home at an inflated price, Wade let him live rent-free on Wade's yacht, the Duke Stir, at a yacht club. Wade's company, MZM Inc., also donated generously to Cunningham's campaigns.
Around the same time, MZM was winning defense contracts.
MZM does classified intelligence work for the military. It had $65.5 million of contracts for intelligence-related defense work in fiscal 2004, ranking No. 38 on the Pentagon's list. The company has established a presence in Iraq, fielding a small team of interpreters shortly after the invasion.
Although prosecutors did not name Cunningham's four co-conspirators, details in the plea documents, including business addresses and occupations, make clear that Wade was one of them.
The documents indicate 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 interceded with prosecutors on Kontogiannis' behalf when he had legal troubles, and a mortgage company run by relatives of Kontogiannis' helped Cunningham finance a condo in Virginia and his house in Rancho Santa Fe.
Attorneys for Wilkes and Wade declined to comment. Kontogiannis' attorney did not return a call.
CUNNINGHAM PLEADS GUILTY