Tales of hookers in Hawaii, Cunningham corruption trial

Cunningham corruption trial set to begin

By: MARK WALKER - Staff Writer

SAN DIEGO ---- Tales of hookers in Hawaii, lavish Capitol Hill dinner parties, private jet junkets and free-flowing cash are expected to be heard when a trial for two men tied to the tawdry corruption of former U.S. Rep. Randy "Duke" Cunningham begins in San Diego on Tuesday.

Facing multiple counts of money laundering and bribery are former Poway defense contractor Brent Wilkes and New York financier John T. Michael. Each man has declared he is innocent of any wrongdoing.

A 28-page trial memorandum filed by federal prosecutors this week suggests that the government has a wealth of evidence to the contrary. And some of their most damaging material may come directly from Cunningham, who is listed as one of more than 40 potential prosecution witnesses.


The government contends that over an eight-year period starting in 1998, Wilkes obtained more than $80 million in defense contracts for his now-defunct firm, ADCS Inc., in exchange for more than $700,000 in cash and material bribes to Cunningham.

Michael is accused of laundering some of the money through his mortgage company, accepting several thousand dollars in exchange for his services.

Michael's uncle, Thomas Kontogiannis of New York, played a key role in those transactions, the government contends, describing both as "professional money launderers." Kontogiannis has pleaded guilty to bribing Cunningham and is awaiting sentencing.

'Chance to learn'

The trial is expected to last at least three weeks and may expose the inner workings of congressional appropriations, particularly "earmarks" ---- legislative moves that lawmakers use to insert money for pet projects into spending bills.

"Beyond the good, bad and ugly of how Brent Wilkes bribed Duke Cunningham is a chance to learn about the system and why Mr. Wilkes decided the only way he could get ahead in Washington was to bribe a prominent appropriator," said Keith Ashdown of a Washington watchdog group called Taxpayers for Common Sense.

Cunningham, a former North County Republican congressman, pleaded guilty in late 2005 to tax evasion and receiving more than $2.4 million in bribes.

His attorney, K. Lee Blalack, would not say Friday if Cunningham will take the witness stand in the courtroom of U.S. District Court Judge Larry Burns, the same judge who sentenced him to more than eight years in prison.

"That's up to the attorneys trying the case," Blalack said during a telephone interview.

That Cunningham has been transferred from an Arizona prison to the Metropolitan Correctional Center near San Diego's Front Street federal courthouse suggests he will appear.

'Hired gun'

Prosecutors contend in documents filed earlier this week that much of the graft that wound up in Cunningham's pockets came directly from Wilkes with Michael's help. Court documents name them as two of four major co-conspirators in the largest congressional corruption case ever uncovered.

Prosecutors allege Wilkes' bribes included trips, arranging prostitutes for Cunningham during a trip to Hawaii, Babylonian meals with fine wines costing thousands of dollars, a speed boat and cash.