Financier pleads in Cunningham case

Financier pleads in Cunningham case

	Published : Fri, 15 Jun 2007 20:17 By : Agencies Print this Story

SAN DIEGO (AP) - A New York financier has pleaded guilty in the bribery scandal surrounding jailed former congressman Randy 'Duke' Cunningham.

Thomas Kontogiannis admitted to a single count of engaging in an unlawful monetary transaction in a February plea agreement filed under seal in San Diego federal court.

According to the plea, unsealed Wednesday, Kontogiannis used $512,538 from the proceeds of a fraudulent transaction to pay off a mortgage he had arranged through his nephew's lending company to help Cunningham buy a $2.5 million mansion in exclusive Rancho Santa Fe in 2004.

That money was eventually paid back to Kontogiannis by Brent Wilkes, a Poway defense contractor, according to the court documents.

Cunningham pleaded guilty in November 2005 to taking $2.4 million in bribes from Wilkes and other defense contractors in exchange for millions of dollars in government contracts. The former Republican lawmaker from San Diego is now in federal prison serving a sentence of more than eight years.

Kontogiannis also admitted giving Cunningham a $200,000 down payment for a condominium in Arlington, Va., and buying a 65-foot yacht from the congressman 'to maintain his relationship with Cunningham, a powerful public official who could assist defendant in various ways,' according to the plea.

Sentencing for Kontogiannis was scheduled Nov. 26. He remains free on $1.5 million bond.

His attorney, Gregory O'Connell, declined to comment on the plea.

In 2002, Kontogiannis pleaded guilty in New York court to fraud charges stemming from an unrelated bribery and kickback scheme involving computer contracts for the New York City school district. Cunningham wrote to prosecutors in 2000 on Kontogiannis' behalf during that investigation.

Wilkes has pleaded not guilty to charges of conspiracy, bribery, money laundering and unlawful monetary transactions to Cunningham in return for government contracts. Kontogiannis' nephew, John T. Michael, of Long Island, has also pleaded not guilty to charges of obstructing justice, money laundering and unlawful monetary transactions.

The two men are facing a September trial.

Wilkes' attorney, Mark Geragos, did not immediately return a message left seeking comment. Wilkes has also pleaded not guilty to separate charges of fraud, conspiracy and money laundering connected to more than $100 million in proposed government contracts he allegedly attempted to arrange with his childhood best friend, a former top CIA official.