I'm digging deeper into this Carol Lam/White House/Duke Cunningham story. Very odd stuff.
Check out the following from the LA Times. Now, keep in mind that MZM was the firm bribing Cunningham, and the firm that Cunningham was directing the federal contracts to. The thing is, MZM had no revenue yet in 2001, but somehow from somewhere they had $100,000 to pay off Cunningham at the same time. Also, MZM had never had any federal contracts. But somehow they get on the preferred vendor list and their first contract is with Dick Cheney's office in the White House. And the amount of money Cheney's people pay MZM is the exact amount of money that is needed to buy Duke Cunningham's boat.
How and why did Dick Cheney's office help this nobody suddenly get rolling?
MZM Inc. was incorporated in 1993 but had not posted any revenue as late as 2001. Still, the company began paying for Cunningham's expenses, according to court documents. In November 2001, a company check for $12,000 paid for three nightstands, a leaded-glass cabinet, an antique washstand and four armoires.
In December 2001, a $50,000 company check was sent to a mortgage banker, who in turn made out a check to Cunningham for the same amount. In January 2002, the company's American Express card was used to purchase a leather sofa and a sleigh bed for Cunningham.
In all, more than $100,000 in cash and furnishings were given to Cunningham even before MZM had posted its first revenue.
Although MZM had no experience with government contracts, the General Services Administration in May 2002 placed the company on a list of approved information technology service providers, a key step for the company to get business from federal agencies.
The first contract, worth $140,000, came from the White House — to provide office furniture and computers for Vice President Dick Cheney.
Two weeks later, on Aug. 30, 2002, Wade purchased a yacht, later christened "Duke-Stir," for $140,000, according to court documents. Cunningham used the yacht, docked at the Capital Yacht Club, as his home in Washington — and the scene of parties for lobbyists and others.
The money and gifts MZM gave Cunningham were a small price to pay for the ultimate prize. In September 2002, the General Services Administration signed a so-called blanket purchase agreement with MZM totaling $250 million over five years.
Under the agreement, specific computer services for the Pentagon would be contracted to MZM without competition.
