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Politics

House report shows scope of scandal

A permissive environment allowed a representative to funnel millions to cronies.

By Los Angeles Times
Published October 18, 2006

WASHINGTON - In addition to the other corrupt dealings that forced his resignation from Congress, former Rep. Randy "Duke" Cunningham used his position on the House Intelligence Committee to steer more than $70-million in government funding to companies run by business cronies, according to a new report by the House panel.

The document expands the scope of the Cunningham bribery scandal to one of the most sensitive committee assignments in Congress. The report is the culmination of an internal investigation launched last year after Cunningham, a California Republican, pleaded guilty to accepting $2.4-million in bribes. His plea was mainly related to his activities as a member of the House Appropriations Committee, and he is serving an eight-year prison sentence.

The full text of the report remains classified, but a five-page summary was released Tuesday by the committee's top Democrat, California Rep. Jane Harman, who has repeatedly voiced frustration with the refusal of the panel's Republicans to make the findings public.

Republican Rep. Peter Hoekstra of Michigan, the panel's chairman, described Harman's decision to release the summary as "disturbing and beyond the pale." He said the document was an "interim, internal report" and suggested that Harman was seeking "to politicize the committee and this critical inquiry."

The investigation was led by Michael L. Stern, a former senior lawyer in the House Office of the General Counsel. He declined to comment Tuesday.

The investigation found no evidence of criminal activity by other lawmakers or committee aides, according to the report. But it describes a permissive environment in which staffers ignored or failed to act on "red flags" surrounding Cunningham's unusual funding requests.

According to the investigation, Cunningham repeatedly pressured aides to insert special funding provisions, known as "earmarks," designed to enrich businesspeople who were paying the lawmaker millions in bribes.

Over a five-year period, the report said, Cunningham inserted language into spending bills adopted by the intelligence panel that provided about $70-million to $80-million in funding for those companies. Because budget details are classified, the public has virtually no ability to scrutinize individual contracts.

Most of the money that Cunningham earmarked went to companies operated by Brent Wilkes of Poway, Calif., and Wilkes' former associate, Mitchell Wade of Washington. Wilkes remains under investigation, and Wade pleaded guilty in February to bribing Cunningham and offering illegal inducements to Pentagon officials.

Intelligence Committee staff members were "fully aware" that Cunningham's requests were designed to steer money to these contractors, the report says.

Former FDA chief pleads guilty

WASHINGTON - Former FDA Commissioner Lester Crawford pleaded guilty Tuesday to conflict of interest and falsely reporting information about stocks he owned in food, beverage and medical device companies he was in charge of regulating.

The misdemeanors each carry a maximum penalty of one year in prison. Crawford's sentencing is set for Jan. 22.

Crawford abruptly resigned without explanation from the Food and Drug Administration post in September 2005.

Information from the New York Times and Associated Press was used in this report.

[Last modified October 18, 2006, 05:36:54]