MZM, Inc. and Questions About Ethics of TWO Republican Congressmen

Kos points us to the following news story regarding an apparent bribe to a very conservative Republican Congressman from California, Randy “Duke” Cunningham:

A defense contractor with ties to Rep. Randy “Duke” Cunningham took a $700,000 loss on the purchase of the congressman’s Del Mar house while the congressman, a member of the influential defense appropriations subcommittee, was supporting the contractor’s efforts to get tens of millions of dollars in contracts from the Pentagon. Mitchell Wade bought the San Diego Republican’s house for $1,675,000 in November 2003 and put it back on the market almost immediately for roughly the same price. But the Del Mar house languished unsold and vacant for 261 days before selling for $975,000. Meanwhile, Cunningham used the proceeds of the $1,675,000 sale to buy a $2.55 million house in Rancho Santa Fe. And Wade, who had been suffering through a flat period in winning Pentagon contracts, was on a tear – reeling in tens of millions of dollars in defense and intelligence-related contracts. In an interview Wednesday, Cunningham conceded that the circumstances surrounding the transaction could raise “fair” questions, but he insisted that the real estate deal was legitimate and independent of his efforts to help Wade win contracts. “My whole life I’ve lived aboveboard,” Cunningham said. “I’ve never even smoked a marijuana cigarette.”

The details of this get interesting:

Wade was traveling without access to a telephone last week, according to Scotty Brumett, an official of Wade’s company, MZM Inc. Brumett said Wade purchased the two-story, four-bedroom, three-and-a-half-bath residence to raise MZM’s corporate profile in San Diego. “We were looking at expanding our company presence in San Diego,” Brumett said. “We looked at the property and thought it would work for us. But after we bought it, we realized that it did not meet our security or our corporate needs.” So the company placed it back on the market within one month of purchasing it, where it stayed for more than eight months, selling eventually for $700,000 less than the price Wade gave Cunningham. …. Property records don’t list Wade or MZM as the buyer of Cunningham’s house. Instead, the records state that Cunningham sold the house to 1523 New Hampshire Avenue LLC. Nevada state business records show that Wade owns that company, too. It is the address of his Washington, D.C., office. “I tried to sell my house,” Cunningham explained. “And I told a bunch of other people I wanted to sell it when Mr. Wade said, ‘Hey, I’ll buy it.’ I went through Willis and Allen. They sent him comps. And he said that’s a fair price and I’ll buy it. Now other than that, I don’t know anything about it.” Noble and White portrayed the transaction as suspicious. “It’s not even like he sold the house to a friend who moved in,” said Noble. “And MZM wasn’t buying an office in San Diego. I don’t know a lot of companies that increase their presence by buying a home that they don’t live in. “I mean this whole thing, frankly, raises a lot of serious questions. At the worst end of the scenarios are illegal gifts or, if this transaction was in essence a payment to Cunningham for his help in getting contracts, then you’d be talking about official bribery.” Said White: “Just the circumstances surrounding this deal raise concerns about whether it was legitimate. And it’s an important question, because if it wasn’t, then this transaction would be a questionable $700,000 gift from an ambitious defense contractor to a sitting member of the House defense appropriations subcommittee.”

MZM, Inc.

MZM, Inc.

Where have I read about MZM, Inc. before?

Ah, yes. There’s this piece from The Roanoke Times:

“U.S. Rep. Virgil Goode, R-Rocky Mount, was instrumental in MZM’s decision to locate an office in Martinsville, according to a press release from Gov. Mark Warner.

MZM was the top campaign contributor to Goode in 2004, according to Web site opensecrets.org.”

Actually, MZM was the top campaign contributor to Virgil Goode in the 2003-2004 election cycle, which includes the years 2003 and 2004. This is important. MZM gave PAC contributions to Goode on the following dates:

9/9/2002 $1,000
3/20/2003 $5,000
3/25/2003 $3,000
3/27/2003 $1,000

On 11/3/2003, the Virginia Tobacco Indemnification and Community Revitalization Commission announced that, thanks to the intervention of one Rep. Virgil Goode, it was happy to provide $250,000 to be provided to a certain company called MZM as an incentive for MZM to locate a facility in Martinsville, Virginia. In addition, $250,000 in incentives would be provided from the Governor’s Opportunity Fund.

That’s $500,000 total. But wait, there’s more money for MZM involved. According to a 11/3/03 press release from the Governor’s office, MZM also received incentives via a $127,000 grant from the Martinsville-Henry County Chamber’s Partnership for Economic Growth. This press release also notes that “U.S. Congressman Virgil H. Goode, Jr. was instrumental in securing this project for Virginia.”

That’s $627,000 received by MZM –that we know of– in this sweetheart deal.

The Martinsville Bulletin of October 31, 2003 reported, “Goode said Wednesday that he was involved in bringing MZM to Martinsville. ‘I am pleased that I was able to alert a first-class company to the strong work force and other attractive business features in the Martinsville-Henry County area and to get the company to take a serious look at locating an operation here,’ the congressman said in a statement issued Thursday. Efforts to lure MZM to Martinsville have taken place quickly. After Goode provided the initial lead, Harned said, the Martinsville Economic Development Department ‘worked very aggressively with this (project) for a month.’”

Fifteen days later, on 11/18/2003, MZM sent another PAC contribution to Virgil Goode, for $1,000, bringing the grand total of MZM PAC contributions to Goode to $11,000. MZM’s PAC did not contribute to Goode before or after these dates.

Of course, $11,000.00 may seem like chump change to a bigwig politician like Virgil Goode. But it’s important to note that these are only the PAC contributions. Thanks to the FEC, we also know of the following contributions from MZM employees and spouses to Goode:

BAKER, DANIEL F., 03/26/2003, $250.00, MZM INC./SENIOR EXEC. VICE-PRESIDENT
BOYES, SANDRA, 03/26/2003, $500.00, MZM INC./VP FOR ANALYTICAL SUPPORT
BRAGG, FRANK B. JR., 03/26/2003, $2000.00, MZM INC./SPECIAL ASST. TO THE PRES.
BRAGG, CYNDY, 03/26/2003, $2000.00, MARRIED TO FRANK BRAGG, JR.
COFER, JONATHAN H. BRIG. GEN, 03/26/2003, $500.00, MZM INC./SR. EXEC. VP
COFER, JONATHAN H. BRIG. GEN, 03/31/2004, $500.00, MZM INC./SR. EXEC. VP
FORSYTHE-NEWELL, SHANE, 04/07/2003, $201.00, MZM INC./PROGRAM MANAGER
GEIDE, KENNETH M., 03/26/2003, $500.00, MZM INC./CONSULTANT
GREEN, WARD W., 03/26/2003, $500.00, MZM INC./INFORMATION SYSTEMS
HOGAN, SUSAN V., 03/31/2004, $500.00, MZM INC./SR. EXEC. V.P.
HOLMES, DAVID P., 03/26/2003, $250.00, MZM INC./ATTORNEY
KING, JAMES C. LT. GEN., 03/26/2003, $2000.00, MZM INC./EXECUTIVE
KING, JAMES C. LT. GEN., 03/26/2003, $2000.00, MZM INC./EXECUTIVE
KING, JENEANE C., 03/26/2003, $2000.00, MARRIED TO JAMES KING
KING, JENEANE C., 03/26/2003, $2000.00, MARRIED TO JAMES KING
KINSELLA, THOMAS P., 03/26/2003, $500.00, MZM INC./VP SYSTEM ENGINEERING
MILLER, FRANK R. MR., 03/26/2003, $500.00, MZM INC./EXEC. VP COUNTERINTEL
PEETERSE, GEORGE A., 03/26/2003, $250.00, MZM INC./VICE-PRESIDENT
PETERSON, LINDSAY D., 03/26/2003, $300.00, MZM INC./COMMUNICATIONS
PEZE, RICHARD., 03/26/2003, $500.00, MZM INC./EXECUTIVE VICE-PRESIDENT
ROSCHE, CHRISTOPHER F., 03/26/2003, $2000.00, MZM INC./SENIOR EXECUTIVE VP
RUBIN, SCOTT M., 03/26/2003, $500.00, MZM INC./PROGRAM MANAGER
SABOL, SHERRY, 04/07/2003, $500.00, MZM INC./ATTORNEY
SHENOUDA, SAMER, 04/07/2003, $250.00, MZM INC./VICE-PRESIDENT
TAYLOR, JAMES M., 03/26/2003, $300.00, MZM INC./SENIOR EXECUTIVE VP
VISOKAY, STEPHEN, 03/26/2003, $250.00, MZM INC./VICE-PRESIDENT TECHNICAL
WADE, CHRISTIANE, 04/07/2003, $2000.00, MZM INC./V.P. OF FINANCE
WADE, CHRISTIANE, 04/07/2003, $2000.00, MZM INC./V.P. OF FINANCE
WADE, MITCHELL J., 09/30/2002, 250.00, MZM INC./PRESIDENT
WADE, MITCHELL J., 04/07/2003, $2000.00, MZM INC./PRESIDENT
WADE, MITCHELL J., 04/07/2003, $2000.00, MZM INC./PRESIDENT

That’s $29,851.00 from MZM employees and staffers. Add in the PAC contributions and you’ve got $40,851.00, which is not chump change in a rural Virginia House race.

Goode continues to receive MZM funds. As a matter of fact, here’s the COMPLETE LIST of individuals giving to Virgil Goode’s campaign in 2005 so far:

BAKER, DANIEL F., 03/02/2005, $1000.00, MZM INC./SENIOR EXEC. VP
BERGLUND, RICHARD A. LT. COL RET., 03/02/2005, $2000.00, MZM INC./MANAGER
BERGLUND, ROBIN, 03/04/2005, $2000.00, MARRIED TO RICHARD BERGLUND
BLAHM, CHRIS A, 03/02/2005, $1000.00, MZM INC./MANAGEMENT
BLAHM, SANDRA L., 03/11/2005, 1000.00, MZM INC./EXEC. VICE-PRESIDENT
BRAGG, CYNTHIA S., 03/04/2005, $2000.00 MARRIED TO FRANK BRAGG
BRAGG, FRANK B., 03/02/2005, $2000.00, MZM INC./CHIEF OPERATING OFFICER
CAIN, AMY, 03/02/2005, $2000.00, MZM INC./PROGRAM MANAGER
CAPRA, ANTHONY, 03/02/2005, $2000.00, MZM INC./MANAGER
CAPRA, SHARON, 03/04/2005, $2000.00, MARRIED TO ANTHONY CAPRA
CARTER, CLARENCE ALLEN, 03/02/2005, $500.00, MZM INC./SECURITY MANAGER
CAWMAN, JAMES W., 03/02/2005, $375.00, MZM INC./SENIOR ANALYST
FLOWERS, JANE T., 03/04/2005, $2000.00, HOMEMAKER
FLOWERS, JONATHAN D., 03/02/2005, $2000.00, MZM INC./EXEC. VP
GANIS, RALPH P., 03/02/2005, $2000.00, MZM INC./ANALYST
GROGAN, DAVID P., 03/11/2005, $1000.00, MZM INC./SENIOR VICE PRESIDENT
HARRELL, DONNA J., 03/02/2005, $2000.00, MARRIED TO ROBERT HARRELL
HARRELL, ROBERT A., 03/02/2005, $2000.00, MZM INC./DIRECTOR OF BUSINESS DEVLP
JAMES, JOSEPH R. JR., 03/04/2005, $2000.00, MZM INC./BUSINESS MANAGER
JAMES, MAY I., 03/04/2005, $2000.00, MARRIED TO JOSEPH JAMES
KING, JAMES C. LT. GEN., 03/04/2005, $2000.00, MZM INC./SR. EXEC. V.P. FOR NAT. S.
KING, JENEANE C, 03/04/2005, $2000.00, MARRIED TO JAMES KING
PUCKETT, PATRICK G., 03/04/2005, $250.00, MZM INC./ANALYST
RUBIN, HARVEY N., 03/04/2005, $500.00, MZM INC./EXECUTIVE
SHAFFER, MATTHEW B., 03/04/2005, $2000.00, MZM INC./IT DIRECTOR
SWINFORD, ROGER A., 03/05/2005, $2000.00, MZM INC./VICE PRESIDENT
WADE, CHRISTIANE, 03/04/2005, $2000.00, MZM INC./V.P. OF FINANCE
WADE, GREGORY V., 03/04/2005 $2000.00, MZM INC./PROGRAM MANAGER
WADE, MITCHELL J., 03/04/2005, $2000.00, MZM INC./PRESIDENT
WALSH, GERARD M., 03/04/2005, $1000.00, MZM INC./CONSULTANT

Yes, that’s right: every single individual contribution to Virgil Goode thus far in 2005 has been from an employee of MZM or a spouse of an employee of MZM. The 2005 contributions sum up to $46,625.00.

That makes a grand total of $87,476.00 to Virgil Goode from MZM. Thanks to Virgil Goode’s intervention, MZM received a total of $627,000 in government incentives packages.

It needs to be said, openly, honestly, sincerely and lawsuit-avoidingly that I am not claiming that MZM has bribed Virgil Goode. No sir. No ma’am.

I’m only pointing out that Virgil Goode has received $87,476.00 in campaign contributions from MZM, and that MZM received $627,000 in government funds thanks to Virgil Goode’s interventions.

This strange coincidence may lead you to pose a number of ethical and factual questions. Some of you may have additional pieces of information which may be somewhat interesting and relevant. Please share them in the comments section, the content of which we are of course not legally liable for. No sir. No ma’am.