Cunningham now says he won't release payment records North County Times - North San Diego and Southwest Riverside County News

By: MARK WALKER - Staff Writer

U.S. Rep. Randy "Duke" Cunningham no longer plans the immediate release of financial records the congressman said would prove he paid more than $13,000 to stay aboard a defense contractor's boat for more than a year.

In a June 23 statement, Cunningham wrote that his attorneys were assembling the payment information for his time on contractor Mitchell Wade's boat, the "Duke-Stir," and would release it once compiled.

The U.S. Attorney's office is leading a grand jury investigation into the relationship between the congressman and the contractor. Last week, the government unsealed a civil suit alleging that Cunningham "demanded and received" a bribe from Wade in a 2003 real estate transaction unrelated to Cunningham's liveaboard arrangement.


In his June statement, Cunningham, R-Escondido, wrote that he had paid "well over" $8,000 in dock fees and "well over" $5,000 for service and maintenance in lieu of traditional rent during the 14 months he lived on the 42-foot vessel.

The promise to make those records public in a timely manner is included in a "Personal Statement from Congressman Cunningham" that has remained posted on his congressional Web site since it was issued.

Attorney K. Lee Blalack said this week that while the 50th Congressional District lawmaker still intended to disclose the payment information, it will be kept under wraps for now.

"The congressman will release those records at the conclusion of the grand jury investigation, which we hope will be soon," Blalack said. "At the time he issued the statement, we were not, to the best of our knowledge, the subject of a grand jury investigation and that weighs heavily."

In the June statement, however, Cunningham did know he was the subject of some kind of investigation, writing he was aware "there is now a legal inquiry under way."

Last week, the U.S. attorney's office in San Diego leading the grand jury investigation unsealed a real estate forfeiture suit filed against Cunningham that contains the criminal bribery allegation.

The civil suit seeks to stop Cunningham from selling a Rancho Santa Fe estate-style home that he and his wife, Nancy Cunningham, purchased for $2.5 million following the sale of the Del Mar Heights residence. That home is now for sale for $3.5 million.

The suit contends Cunningham bought the Rancho Santa Fe property with funds obtained from Wade in violation of federal bribery statutes.

In late 2003, Wade purchased the lawmaker's Del Mar Heights home for a price that was $700,000 more than Wade sold it for less than a year later, without ever having lived in or used the home.

According to the government's civil suit, Wade paid "an amount far greater than its true fair market value," a payment allegedly made in return for Cunningham's "being influenced in the performance of his official duties."

Cunningham is a member of the House Appropriations Committee and its Defense Subcommittee.

Wade is the founder and former sole owner of MZM Inc., a Washington, D.C., defense firm that since 2002 has seen the value of its Pentagon contracts swell to more than $160 million. MZM was recently sold to a New York investment firm, which plans to transform the company into a new defense firm.

Cunningham has described Wade as a personal friend. In his June statement, he wrote that he started staying aboard Wade's boat April 2004, using the vessel as his residence when he was in Washington.

He wrote that he and Wade agreed that rather than paying rent, Cunningham would be responsible for monthly dock fees and boat maintenance costs.

The 63-old-lawmaker, who announced in July he would not seek re-election next year, stopped living aboard the boat following the first published report of his real estate dealings with Wade.

Cunningham has denied any wrongdoing, writing in June that he "welcomed any and all appropriate investigations" and predicted the outcome would "confirm that I have acted honestly."

A hearing on the civil suit is set for Sept. 9 before U.S. District Judge Dana Sabraw in San Diego. The original complaint seeking forfeiture of the property to the government was filed July 21. It had been kept secret under court order until U.S. attorneys voluntarily unsealed it last week.