WASHINGTON (AP) -- Rep. Randy ''Duke'' Cunningham will plead guilty to tax violations, a person close to the investigation of the California Republican has told The Associated Press.
Cunningham has been under investigation since his sale of his home to a defense contractor at an apparently inflated price in 2003 attracted the attention of federal investigators.
A hearing in the case was scheduled in federal court in San Diego on Monday, and two people close to the investigation said Cunningham would enter a guilty plea. One of those people said he would plead to tax violations related to the home sale.
Cunningham, 63, is an eight-term congressman and Vietnam War flying ace.
In November 2003, he sold his Del Mar, Calif., home to defense contractor Mitchell Wade for $1,675,000. Wade put the house back on the market and sold it after nearly a year for $975,000 -- a loss of $700,000 in one of the nation's hottest housing markets.
Cunningham and his wife, Nancy, used the proceeds from the sale to buy a $2.55 million mansion in ritzy Rancho Santa Fe, Calif.
Wade also let Cunningham live rent-free on his yacht, the Duke Stir, at the Capital Yacht Club. His firm, MZM Inc., donated generously to Cunningham's campaigns.
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