Funds could be used to cover any legal fees

By Dani Dodge
UNION-TRIBUNE STAFF WRITER

8:02 p.m. July 19, 2005

People donated more than $40,000 to Rep. Randy "Duke" Cunningham's political action committee last month, according to documents filed Tuesday with the Federal Election Commission.
Cunningham collected much of the money from participants in a Torrey Pines Golf Course fundraiser June 1, according to information received through a public records request.

Federal election documents also show that defense contractor MZM Inc. gave Cunningham's fund, American Prosperity PAC, $5,000 in late May.

Cunningham, who faces several federal investigations into his relationship with the founder of MZM Inc., may be able to use the money for legal fees.

On June 12, The San Diego Union-Tribune revealed that Cunningham, a Republican from Rancho Santa Fe, sold his Del Mar-area home to Mitchell Wade, the founder of MZM, for what appeared to be an inflated price while at the same time recommending MZM for defense contracts. Last week, Cunningham announced he would not seek re-election.

Cunningham's troubles did not slow contributions into either his campaign coffers or his PAC. In the last three months, his campaign fund grew $133,000 to $672,000, according to campaign documents. The golf tournament and other fundraising expenses cost his PAC fund $22,000, but Cunningham still had about $56,000 cash on hand at the end of June, according to his PAC documents he files monthly.

Politicians typically use their PAC funds, often called leadership PACs, to contribute to other candidates and their party. PACs can also be used to pay a politician's attorney fees as long as the legal troubles are related to their political position, said Ian Stirton, a spokesman for the Federal Elections Commission

"If he sets up a separate legal defense account, (the campaign or PAC funds) could contribute unlimited amounts," Stirton said.

Cunningham has not set up a legal fund, but also has not ruled out doing so, said Harmony Allen, his chief of staff.

Elizabeth Todd, the real estate agent who set the controversial price for Cunningham's Del Mar-area home, also arranged the golf fundraiser. About 40 business people attended, some from as far away as Washington and Kentucky. Like most of the golfers, Bumble Bee President and CEO Christopher D. Lischewski represented a PAC, in this case his Encinitas-based company's PAC.

"I know he's been having problems now, but he's been a staunch supporter of the tuna industry," Lischewski said. "This was an opportunity, without going back to Washington, to make sure the congressman knows what our issues are."

Defense contractor PACs including Employees of Northrop Grumman Corp. PAC and Lockheed Martin Employees' PAC paid $5,000 and $2,500, respectively, to Cunningham's PAC after golfing. Other golfers who contributed to the fund represented Cubic Corporation Employees PAC ($2,000), the National Rifle Association Political Victory Fund ($2,500) and SBC Communications Inc. Federal PAC ($2,500).