A former defense contractor who was caught showering disgraced Congressman Randy “Duke” Cunningham with bribes and then agreed to cooperate with prosecutors has alleged provided information to prosecutors about Senator Dan Inouye and “at least” four other members of Congress, according to a story in the non-profit Voice of San Diego.

Inouye was among those allegedly named by Mitchell Wade, former president and CEO of defense contractor MZM Inc., who pleaded guilty to paying $1 million in bribes to Cunningham in exchange for Cunningham’s assistance in landing large Pentagon contracts. Wade also pleaded guilty to election fraud for making political contributions in the names of company employees, which also resulted in a $1 million fine by the Federal Election Commission.

The story by former AP reporter Seth Hettena refers to a sentencing memo filed in court on November 26, 2008 by Wades’ attorneys, who argue that his cooperation with prosecutors in investigations of other members of Congress should result in a reduced sentence.

According to the memo, Wade “discussed potentially-corrupt political contributions, fundraising activities and other congressional activities with prosecutors on at least six occasions between September 2005 and May 2006.”

Two of the Members of Congress about whom Mr. Wade was questioned by federal investigators and provided information have been described in the press as under corruption-related investigations by the government. Three others have come under scrutiny for their receipt of straw contribution funds provided by MZM employees and, in one instance, for the possible receipt of undisclsoed gifts of food and wine. While none of these individuals has, as of yet, been charged with a crime, Mr. Wade’s cooperation made it possible for the government to reach conclusions about the role of various Members of Congress in connection with MZM political fundraising.

Wade’s attorneys do not name names, but Hettena, citing anonymous sources “with knowledge of the investigation”, alleges Inouye was among those under investigation.

A sentencing memo filed by Wade’s attorneys says he also aided the government in its investigation of “at least five other members of Congress” under investigation for “corruption similar to that of Mr. Cunningham.” According to sources with knowledge of the investigation, these five include Sen. Dan Inouye (D-Hawaii), Rep. Allan Mollahan (D-W.Va.), Rep. Jerry Lewis (R-Calif.), outgoing Rep. Virgil Goode (R-Va.), and former Rep. Katherine Harris (R-Fla). It’s unclear how useful Wade’s information was; none of the five have been charged with any wrongdoing. Prosecutors also say Wade helped in a “large and important corruption investigation,” another case that also hasn’t resulted in any charges.

It’s hard to know whether to put any credence in such allegations. The absence of any action during the more than 2-1/2 years after the alleged discussions with prosecutors is certainly important to note.

Inouye’s press secretary, Mike Yuen, later issued a statement:

You and your readers should know that Senator Inouye has not been contacted by the FBI or any other investigative authority in connection with the cases involving Duke Cunningham, Brent Wilkes, and Mitchell Wade. Speculation and suggestions that a cloud of wrongdoing hangs over him and that he engaged in similar misconduct have no basis in fact.

A story appearing today on ProPublica.org is also skeptical.

The link to Inouye, set to take over the powerful Senate Appropriations Committee, is less clear but appears to involve the activities of one of Wade’s co-conspirators, defense contractor Brent Wilkes, according to Hettena. There are no known allegations of misconduct against Inouye in connection with the Cunningham scandal.

Prosecutors, who are seeking a four-year prison sentence for Wade, submitted their own sentencing memo (PDF) to U.S. District Court Judge Ricardo M. Urbina. Without naming Harris and Goode, it alluded to Wade’s help in those two dead-end probes. It made no apparent mention of inquiries into the other three members of Congress about whom Wade reportedly provided information to the government.

The Voice of San Diego has been credited with “doing some of the best and liveliest muckraking reporting of any Web-only news staff in the country.” This provocative story is certainly an example.

Did you notice that BNP Paribas, the French parent company of First Hawaiian Bank, announced over the weekend that it may have lost nearly $500 million in the Ponzi scheme of Wall Street baron Bernie Madoff?

McClain Auctions sold off a slew of items on Saturday from the home of James Lull, who pleaded guilty earlier this year to federal charges stemming from an investment fraud scheme that may have netted up to $50 million. The sale was part of Lull’s 2006 bankruptcy.

A second auction featuring more of Lull’s possessions is expected early in 2009. You can sign up to receive notices of upcoming auctions at the McClain Auctions web site (click “Subscribe” on the main page).

While in town on Saturday for the auction, I slipped out for a few minutes and walked over to the McCandless Building on the corner of King and Bethel. This was the location of Dorhmann Hotel Supply Company when my father arrived in Hawaii to join the local office in 1939. The building is still there today. I thought a “then and now” pair of photos might be of interest.