NYT
House Democrats said Tuesday that they would run newspaper advertisements this week criticizing the ethics of six House Republicans, including Representative Randy Cunningham of California, who is under investigation by a grand jury looking into his ties with a military contractor.
On Friday, federal agents searched Mr. Cunningham's house in Rancho Santa Fe, north of San Diego, and the yacht here on the Potomac where he has lived for much of the last year. Federal investigators also searched the Washington office of the contractor, MZM Inc. Mr. Cunningham said he had been "friends for many years" with a founder of MZM, Mitchell J. Wade, a campaign contributor who bought Mr. Cunningham's house in Del Mar, Calif., in November 2003.
Mr. Wade paid $1,675,000 for the house and sold it nearly a year later for $975,000, for a loss of $700,000 in one of the hottest housing markets. Mr. Cunningham said he "showed poor judgment" in selling his house to a friend who did business with the government. Moreover, he said, "I showed poor judgment in not listing the house publicly for sale." But, he said, "I have acted honestly."
The congressman said he began living on the yacht, which belongs to Mr. Wade, in April 2004 and had paid $13,000 for dock fees, service and maintenance work on it. "There was nothing improper about my arrangement with Mr. Wade, because I paid these monthly fees and costs in lieu of rent," Mr. Cunningham said. The Democratic Congressional Campaign Committee and the Democratic National Committee have bought advertisements about the ethics of Mr. Cunningham; Representative Tom DeLay of Texas, the House majority leader; and Representatives Bob Ney of Ohio, Richard W. Pombo of California, Rob Simmons of Connecticut and Charles H. Taylor of North Carolina.
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