Political Skullduggery

(T)he president of a small San Diego manufacturing company, showed a new acoustics technology he was developing to his neighbor, defense contractor Brent Wilkes. Wilkes soon came back with an unusual proposition.

Wilkes said that Congress had set aside or "earmarked" $25 million in the military budget for the Navy to develop an acoustical system. He promised he could win the government contract to develop the system for Beck's Horizon Sports Technologies, according to allegations in a lawsuit. In return, Wilkes wanted $1.5 million up front to cover his lobbying expenses and a 51 percent interest in a new company they would set up to collect the government cash...

Although it is common for lobbying firms to charge clients large fees to pursue earmarks, Wilkes's demand for a majority interest in the resulting contract is highly unusual, experts said. "It has a strong, bad odor about it," said Kenneth A. Gross, a Washington lawyer who specializes in ethics law. He said many states, including California, have banned such contingency, or success, fees, though there is no federal prohibition.

"My client did nothing inappropriate or illegal in trying to obtain funding for his clients' projects," said Wilkes's attorney, Michael Lipman of San Diego.

Wilkes was an obscure California contractor and lobbyist until his name surfaced last year as one of two defense contractors alleged to have given Cunningham $2.4 million in cash and other benefits in return for Cunningham's steering government business their way. One of Wilkes's companies received more than $80 million in Pentagon contracts over the past decade that stemmed from earmarks that Cunningham slipped into spending bills.

Outstanding return on investment (ROI).

(Wilkes) expanded his business by setting up his own lobbying firm, Group W Advisors, in the Washington suburbs, to pursue earmarks.

posted by Effwit @ 11:03 AM