Watchdog group files FEC complaint against defense contractor

22 Jun 2005 // A congressional watchdog group filed a complaint Tuesday with the Federal Election Commission against a defense contractor whose dealings with Rep. Randy "Duke" Cunningham are the subject of a federal investigation.

Citizens for Responsibility and Ethics in Washington, or CREW, called for the commission to investigate MZM Inc., MZM President Mitchell Wade and the company's political action committee over possible illegal campaign contributions.

A message left at MZM's main offices in Washington, D.C., wasn't returned.

CREW accused MZM and Wade of forcing company employees to donate money to the company PAC in 2002, citing a report Tuesday in The San Diego Union-Tribune. One employee described being told to write a check in the company's Washington headquarters while the unnamed recipient stood nearby, according to the newspaper report.

Campaign finance laws prohibit employers from compelling workers to contribute to a company's PAC. CREW's executive director, Melanie Sloan, said Cunningham and others who received money from MZM's PAC should have to relinquish it.

MZM's PAC donated $17,000 to Cunningham, a San Diego-area Republican, and the congressman's own political action committee during the 2002 and 2004 election cycles.

Cunningham spokesman Mark Olson declined comment.

The company PAC also gave Reps. Katherine Harris, R-Fla., and Virgil Goode, R-Va., $10,000 each during the 2004 election cycle. MZM runs a screening center in Martinsville, Va., for defense contractors based outside in the United States. The screening center is in Goode's district.

A federal grand jury has reportedly convened in San Diego to look into the November 2003 sale of Cunningham's home in Del Mar to Wade.

Wade put the house back on the market shortly after buying it for $1.7 million, and took a $700,000 loss on it last year.

About the same time, little-known MZM Inc., which is based in Washington, began receiving large government contracts.

Bob Biersack, an FEC spokesman, said he could not comment on the complaint, but noted that, in general, the FEC can impose civil penalties in such cases.

The largest FEC fine was $849,000 imposed on 2003 on Audiovox, Inc., a New York-based wireless products company. Audivox employees and some of its suppliers were asked to make political contributions and were reimbursed with corporate funds.