THE BURNED OVER DISTRICT

From the San Diego Union-Tribune we learn that MZM Inc, the favored contractor of Duke Cunningham is on the market. It appears that it might sell for as big a loss as Dukes old house. Josh Marshall has a whole bunch of great posts on this, with lots of details.

A source close to Wade said he is selling the company to preserve the jobs of the several hundred people it employs.

The move continues a corporate roller-coaster ride for the embattled MZM that began June 12 when the Union-Tribune disclosed that Wade had purchased and sold Cunningham's Del Mar-area house at a $700,000 loss.

It was later revealed that Wade has allowed the Rancho Santa Fe Republican to live aboard his yacht in Washington.

After those revelations, Wade selected Frank Bragg, MZM's chief operating officer, to replace him as CEO and president. But Friday evening, Bragg abruptly left the Washington-based company.

Kay Cole James, MZM's senior executive vice president for national security transformation, also resigned on Friday. She had only joined the company last month.

President Bush appointed James director of the U.S. Office of Personnel Management in 2001, and she previously worked in federal posts during the administrations of Presidents George H.W. Bush and Ronald Reagan.

Several lower-level MZM employees also resigned Friday.

Wade had been quietly planning to sell the company as early as next year to its employees through an Employee Stock Ownership Plan, or ESOP, according to several close or former associates.

It was unclear last night whether the accelerated timetable was a result of the controversy surrounding Wade's ties to Cunningham or resulted from other factors.

Wade had anticipated making $100 million on the company's sale, according to the sources, a goal that appears less likely now.

They fold up their tents and slip away into the night.