Federal Grand Jury Issues Document Subpoena To Cunningham

(via KFMP Local 8)
Last Updated:
06-28-05 at 7:12PM

(AP) - A federal grand jury issued a document subpoena to Rep. Randy "Duke" Cunningham, his attorney said Tuesday. Prosecutors in San Diego are investigating Cunningham's sale of his home to a defense contractor at what may have been an inflated $1.675 million price.

Cunningham's attorney, K. Lee Blalack, disclosed the subpoena in a brief statement, but did not specify what documents were being sought. Blalack said the Del Mar Republican directed him to comply with the subpoena expeditiously.

Reached by phone, Blalack declined further comment.

Cunningham, a former Navy "Top Gun" fighter pilot and eight-term congressman, sold his home in 2003 to Mitchell Wade, a campaign contributor, close friend and executive of MZM Inc., a defense contractor that was enjoying a rush of new business with the Pentagon.

Wade bought Cunningham's home in the wealthy coastal community of Del Mar in November 2003. Wade put the house back on the market a short time later and it sold after nearly a year for $975,000 - a loss of $700,000 in one of the nation's hottest housing markets.

Separately, MZM overhauled its management team amid questions over whether the company will be harmed by the investigation. In a brief statement Tuesday, MZM said James C. King, a retired three-star Army general, was taking over as president and chief executive. That role was previously held by Wade, who founded the company in 1993.

King succeeds the management team of Frank Bragg Jr. and Kay Coles James, both of whom voluntarily resigned, according to the statement. King served as director of the National Imagery and Mapping Agency, now known as the National Geospatial Intelligence Agency, before his retirement in 2001.

The statement made no mention of Wade. An MZM spokesman did not return calls seeking comment.

MZM said it was exploring "strategic alternatives" to remain in business as a defense agency confirmed that it had halted new work on a contract that has provided the Washington, D.C.-based company with $163 million in revenue.

The contract was a $225 million, five-year blanket purchase agreement for engineering and technical support for intelligence that records show has been used by both the Defense Department and the Executive Office of the President.