Saturday, July 30, 2005
Duke Cunningham sure was a helpful guy.
Since his career as a generous congressmoop fell apart, we are beginning to see the full extent of his generosity.
Integrated Actuarial Services of Ormond Beach, Fla., says the Rancho Santa Fe Republican, acting in his role as a member of the House Appropriations Committee, pressed the IRS to pursue an auditing project that led to a contract benefiting the San Diego group.They did no work and paid no bills, now that's a profitable business model.
The group, which includes two residents of Cunningham's district, incorporated in 1999 as First Auditors for the express purpose of pursuing the IRS auditing contract. None of them had an accounting background, and First Auditors had no other projects or clients.
IAS, the Florida company, claims that First Auditors acted as little more than a shell company and used a Washington lobbyist and Cunningham's help to win the contract. IAS also claims that First Auditors improperly pocketed most of the money the IRS paid out in connection with the auditing contract, despite having almost no responsibilities under it.
First Auditors denies any wrongdoing but is resisting an audit of how it spent the roughly $3.5 million it received from the IRS before the agency decided not to renew the program earlier this year.
The cancellation came against the backdrop of IAS complaints to the IRS that First Auditors was not making payments to IAS. The software company had developed the specialized actuarial software needed to complete the contract and, acting as a subcontractor, was doing all of the work, including training, updates and support.
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