Sex, Lies, and Government Contracts

The Progress Report. Posted May 5, 2006.

The most extensive federal corruption scandal in a century is growing. In March, former Rep. Randy "Duke" Cunningham (R-CA) was sentenced to more than eight years in federal prison (the longest sentence ever given to a member of Congress) for accepting $2.4 million in bribes in exchange for lucrative defense contracts. Yet Cunningham's crimes, the "magnitude and duration" of which are compared to the Teapot Dome scandal of the 1920s, may end up a mere prelude.

According to recent reports, federal investigators have traced the outlines of a far more extensive network of suspected corruption, involving multiple members of Congress, some of the nation's highest-ranking intelligence officials, bribery attempts including "free limousine service, free stays at hotel suites at the Watergate and the Westin Grand, and free prostitutes," tens of millions of dollars in federal contracts awarded under dubious circumstances, and even efforts to influence U.S. national security policy by subverting democratic oversight.

The ringleader

At the center of the storm is California defense contractor Brent Wilkes -- aka "Co-Conspirator #1" in government documents -- "who gave more than $630,000 in cash and favors" to Cunningham "for help in landing millions of dollars in federal contracts." Wilkes devoted much of his 20-year career to "developing political contacts in Washington," a task at which he excelled, serving recently both as a county finance co-chairman of Gov. Arnold Schwarzenegger's (R-CA) campaign and as the state finance co-chairman for President Bush. "Wilkes, his family members and his employees were heavy campaign contributors to several members of Congress," and he frequently invited members -- including Cunningham, Rep. Tom DeLay (R-TX), and House Speaker Dennis Hastert (R-IL) -- on chartered corporate jets.

The efforts paid off handsomely: "Wilkes won tens of millions of dollars worth of defense contracts for his companies through the process of closed-door congressional earmarking of the federal budget." Indeed, "many of the contracts Wilkes secured" were for projects the Pentagon never even requested. Wilkes has thus far avoided any criminal charges, but federal officials are investigating instances of quid pro quo, since the "timing of Wilkes' many political donations closely parallels the approval of earmarks for Wilkes' companies."

'Red lights on Capitol Hill'

For more than a decade, Wilkes curried favor with lawmakers and CIA officials by hosting weekly parties at lavish hospitality suites at the Watergate and Westin hotels in Washington. Guests would gamble, socialize, and sometimes receive prostitutes; according to Harper's magazine, the festivities "began early with poker games and degenerated" into what one source described "as a 'frat party' scene -- real bacchanals." Mitchell Wade, another defense contractor who pleaded guilty in February to bribing Cunningham, has "told federal prosecutors that he periodically helped arrange for a prostitute for the then-congressman."

But investigators are digging for more: FBI agents "have fanned out across Washington, interviewing women from escort services, potential witnesses and others who may have been involved in the arrangement," attempting to determine "whether any other members of Congress, or their staffs, may also have used the same free services." Last week, a reporter for the San Diego Union-Tribune said that "as many as a half dozen other Congressmen" may ultimately be implicated in the scandal. (Several have already denied ever attending Wilkes' parties.) Also, investigators are reportedly "trying to determine whether Cunningham and other legislators brought prostitutes to the hotels or prostitutes were provided for them there"; there is speculation that Wilkes may be subject to felony federal sex-trafficking charges if the Virginia-based limousine service he used transported the prostitutes into Washington.

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