Prostitution alleged in Cunningham case Feds investigating claims that contractor provided call girls to congressman



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Topic: Religions > Atheism
User: "stoney"
Date: 29 Apr 2006 09:19:41 AM
Object: Prostitution alleged in Cunningham case Feds investigating claims that contractor provided call girls to congressman
The allegations about prostitutes were reported this week by the Wall
Street Journal. Asked yesterday about the allegations, Wilkes's
attorney, Michael Lipman of San Diego, said: "My client denies any
involvement in that conduct." Cunningham's lawyer, K. Lee Blalack II,
declined to comment.
The San Diego Union-Tribune yesterday cited a letter from Baker's
lawyer, Bobby Stafford, saying that Baker "provided limousine services
for Mr. Wilkes for whatever entertainment he had in the Watergate" from
the company's founding in 1990 through the early 2000s. The letter also
stated that Baker was "never in attendance in any party where any women
were being used for prostitution purposes." Reached by telephone
yesterday, Stafford would not comment on the letter.
/excerpt
So the allegations are accurate. San surprise.
http://www.msnbc.msn.com/id/12521205/
Prostitution alleged in Cunningham case
Feds investigating claims that contractor provided call girls to
congressman
By Jo Becker and Charles R. Babcock
Updated: 1:05 a.m. ET April 29, 2006
Federal authorities are investigating allegations that a California
defense contractor arranged for a Washington area limousine company to
provide prostitutes to convicted former congressman Randy "Duke"
Cunningham (R-Calif.) and possibly other lawmakers, sources familiar
with the probe said yesterday.
In recent weeks, investigators have focused on possible dealings between
Christopher D. Baker, president of Shirlington Limousine and
Transportation Inc., and Brent R. Wilkes, a San Diego businessman who is
under investigation for bribing Cunningham in return for millions of
dollars in federal contracts, said one source, who requested anonymity
because the investigation is ongoing.
Baker has a criminal record and has experienced financial difficulties,
public records show. Last fall, his company was awarded a $21 million
contract with the Department of Homeland Security to provide
transportation, including limo service for senior officials. Baker and
his lawyer declined to comment yesterday.
New scandal for the Watergate Hotel
The Cunningham investigation's latest twist came after Mitchell J. Wade,
a defense contractor who has admitted bribing the former congressman,
told prosecutors that Wilkes had an arrangement with Shirlington
Limousine, which in turn had an arrangement with at least one escort
service, one source said. Wade said limos would pick up Cunningham and a
prostitute and bring them to suites Wilkes maintained at the Watergate
Hotel and the Westin Grand in Washington, the source said.
Cunningham resigned from Congress after pleading guilty last November to
accepting $2.4 million in bribes from four co-conspirators, including
Wilkes and Wade. The former lawmaker was sentenced to eight years and
four months in prison. Wade pleaded guilty to his part in the scheme in
February and is cooperating with investigators. Wilkes has not been
charged.
The allegations about prostitutes were reported this week by the Wall
Street Journal. Asked yesterday about the allegations, Wilkes's
attorney, Michael Lipman of San Diego, said: "My client denies any
involvement in that conduct." Cunningham's lawyer, K. Lee Blalack II,
declined to comment.
The San Diego Union-Tribune yesterday cited a letter from Baker's
lawyer, Bobby Stafford, saying that Baker "provided limousine services
for Mr. Wilkes for whatever entertainment he had in the Watergate" from
the company's founding in 1990 through the early 2000s. The letter also
stated that Baker was "never in attendance in any party where any women
were being used for prostitution purposes." Reached by telephone
yesterday, Stafford would not comment on the letter.
Laundry list of problems
Before starting Shirlington Limousine, public records show, Baker
compiled a lengthy criminal record. Between 1979 and 1989, he was
convicted on several misdemeanor charges, including drug possession and
attempted petty larceny, as well as two felony charges for attempted
robbery and car theft, according to D.C. Superior Court records.
The Internal Revenue Service filed a tax lien against Baker in 1996. He
lost his house in 1998, and he filed for personal bankruptcy protection
in 1998 and again in 1999.
Although Baker's company began receiving small federal contracts in
1998, it also fell into debt, records show. In early 2002, Arlington
County Circuit Court ordered Shirlington Limousine to pay American
Express Travel Related Services Co. $55,292.
That summer, Howard University terminated a contract with Shirlington
Limousine to supply shuttle bus service, citing poor service and other
problems.
In 2003 and again in 2004, the company received eviction notices for an
office it maintained in a luxury D.C. apartment building. And in
September 2004, the company was sued in D.C. Superior Court for $1.8
million, for failing to make payments on buses it bought for the Howard
contract. The case was settled last month, with Shirlington Limousine
agreeing to pay $300,000.
Doing business with the feds
During these financial troubles, Baker's company won a contract worth
$3.8 million with the Department of Homeland Security in April 2004. It
appears from federal records that Shirlington Limousine was the only
bidder. The contract was awarded under a program that limited
competition to businesses in poor neighborhoods.
Baker was able to close his bankruptcy case last April after he made
nearly $125,000 in payments to creditors, according to court records.
The Homeland Security Department said it awarded Shirlington Limousine,
one of three bidders, another one-year contract for $21.2 million in
October.
Homeland Security spokesman Larry Orluskie said the department does not
routinely conduct background checks on its contractors. Instead, it
relies on a list the government keeps of vendors who have had serious
problems with federal contracts, he said.
In Shirlington Limousine's case, only the drivers were subject to
criminal background checks, he said.
Record of good service
Past performance is one key factor the government weighs in awarding a
contract, Orluskie said. But he said he did not know whether contract
officers checked with Howard University before awarding Shirlington
Limousine its first contract.
He stressed that Shirlington Limousine has performed well, saying: "We
have not had any problems with this service -- we don't question whether
they can deliver because they are delivering."
Steven L. Schooner, an associate professor and contracting expert at
George Washington University Law School, said that although there is no
explicit prohibition against giving contracts to felons or people with
poor business histories, the government is obligated to ensure that
potential vendors have a satisfactory record of business ethics and
integrity, and that they have the financial resources to meet
contractual obligations.
"There's a fundamental government responsibility to investigate," he
said.
Researcher Alice Crites contributed to this report.
© 2006 The Washington Post Company
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