Should Rep. Cunningham resign?

[jshilli1]

It sounds like this man should resign, and be brought up on criminal charges.

There is an investigation into the relationship between Mitchell Wade of MZM and Duke Cunningham (and Katherine Harris and some others)... Basically the story goes like this...

1. Rep Cunningham put his home up for sale for $1.7 million
2. Mitchell Wade purchased it
3. Less than a year later, Wade sold it for $700,000.
4. Wade also has a yacht in the DC area that Cunningham sleeps on.
5. Cunningham serves on the Permanent Select Committee on Intelligence.
6. MZM had 56 defense intelligence contracts totaling $68,645,909 in fiscal year 2004
7. MZM's skill areas are
-National Intelligence Policy Advisor
-Subject Matter Experts in Counterintelligence, Homeland Security, Critical Infrastructure Protection and All-Source Intelligence.
-Systems Integrators/Information Assurance Experts
-Geospatial Intelligence Analysts
-Open-Source Analysts
-Translators
-HUMINT/SOF Operators
-Media Exploitation Specialists
-Counter-IED Specialists
8. One of the contracts awarded to MZM includes Counter Intelligence Field Activity, which is a program to avert attacks like 9/11
9. The contracts were awarded to MZM without competition through a process known as "blanket purchase agreements."

So on matters such as this, I submit these two things:

This certainly looks like a kickback to me.

If a kickback is necessary, that suggests to me that either (a) the quality of the product is sub-standard or (b) the price is inflated. But who really cares right? I really really hope its just (b)- but then I'd like to think our government WOULD pay a higher price for a higher quality service, actually the best quality service available given the job at hand. So that makes me think it could be (a) or a mixture of the two.

[jshilli1]

Wow- noone has an opinion on protecting our security? Should our security be sold to whoever enriches "their" political candidate the most?

[TTAfreak]

arent these "blanke contracts" commonplace?

and can Cunningham possibly grant that contract all by his lonesome?

and im not sure I see the relevance of the house transaction.

Cunningham sells it for 1.7 mill
later the guy that bought it for 1.7 has to sell it for 700k

so are you saying since he lost his arse on the house, thats the reason for the contract?

[jshilli1]

You don't think this looks like a kickback? We're not talking about overpaying by $1M on a $35M home here. We're talking about overpaying by 100% or more. Maybe Rep. Cunningham is an excellent salesman, or his rookie realtor (also a campaign contributor). But the guy that bought it was #4 on his donor list. And the house he turned around and bought with the $1.7M - was owned by #3 on his donor list, and may have been sold well below market value (which IMO is a less obvious way to do the kickback to begin with).

Maybe he just lucked into this. I have a lot of experience with realtors, purchasing homes, and appraisals- so maybe I don't give 'dumb luck' enough credit.

Blanket contracts are commonplace when the service offered is considered a 'commodity'; given the types of services offered in this case, if they are, shouldn't they not be?

Good point, Cunningham doesn't grant those contracts all by his lonesome. Cunningham does have good pull within his own party on this commitee.

Not only did he lose a lot on the house- Cunningham lives on Wade's yacht in DC. It certainly has the possible appearance of a kickback. Maybe its a huge string of coincidences.

[salvageV6]

Looks like a kickback?

"It sounds like this man should resign, and be brought up on criminal charges."

Wow tried and convicted already.

Wonder what the Congressional ethics folks have to say?

Your inferences are astounding.

I'd put on your tinfoil hat and call your Congressman so he can start a formal investigation, might even be in the scope of his job. Maybe with your help we can get to the bottom of all this.

Just as a comparison Clinton didn't resign and he was a convicted for lying under oath.

After he found out what the definition of "IS" was I even think he knew he was lying, but of course that is an inference as well.

[jshilli1]

To put it another way, TTA -

What was the last thing you bought that it turned out you paid DOUBLE what it was worth? Was it a can of soda, a pack of gum, bottle of water, probably in the airport? And you notice that, don't you- sheesh, that bottle of water costs twice what it does at Walgreens. Have you ever paid DOUBLE for a house, or a car? Aren't these the transactions you scrutinize and reasearch the most?

Makes you wonder what it takes to get the ethics comittee to do anything! Congressmen make $158,000/year (2004).

FROM http://www.conginst.org/

The types of work that Members are allowed to do and the amount of money they are permitted to earn on top of their Congressional salary are strictly controlled by ethics rules that seek to keep Members focused on their official obligations to their constituents, rather than outside businesses.

Representatives and Senators are limited to earning 15% in excess of their yearly Congressional salary. No income from fiduciary relationships is allowed. These are a type of business association where an individual is trusted to manage the money or assets of others; this rule is intended to prevent situations where a conflict of interests could occur, such as if a Member was in a position to pass laws benefiting a company of which he or she is a board member. Many professions such as law and banking are considered to involved fiduciary relationships and are prohibited. Practicing doctors were given a special exemption from this regulation.

Income from personal investments is regarded as “unearned” income, and is not subject to the 15% rule. Because the Member is only collecting money based on assets that are already owned, no personal services are being performed and the income is not considered to be “earned.” Examples of unearned income include interest, rent, and stock dividends. Readers should note that the Ethics Committees reserve the right to interpret the source of an income and make a decision on it, regardless of how the Member describes the income. This prevents Members from receiving payments for actual services rendered in the guise of unearned income.

Man, thats one lucky guy!

[TTAfreak]

I would want to know what the home actually APPRAISED for before I jumped to a conclusion about Cunningham making twice what its worth.

Whos to say the other guy just didnt sell it for a loss to someone?

Maybe its a huge string of coincidences.

doubtful. Im not defending cunningham....(though I am a big fan of his war record) ....hell, if hes guilty of something, he should be tried.

I just need more details to make up my mind.

Im completely ignorant of this whole topic. your thread is the first ive heard about it.