OIG Investigative Reports, Wife of Former Congressman Agrees to Forfeit Proceeds from Home Sale and Pay IRS More Than $1.6 Million in Taxes, Penalties and Interest. Skip to main contentAbout UsContact UsFAQs Language Assistance Englishespañol中文: 繁體版Việt-ngữ한국어TagalogРусский U.S. Department of Education Search for: Toggle navigation U.S. Department of Education Student Loans Grants Laws Data About ED OFFICES Home Reports & Resources Programs/Initiatives News Office Contacts Investigative Report PRESS RELEASE: Southern District of California, October 6, 2006 U.S. Department of Justice Office of the United States Attorney Southern District of California United States Attorney Carol C. Lam For Further Information, Contact: Assistant U.S. Attorneys Sanjay Bhandari (619) 557-7042, Jason A. Forge (619) 557-7463, and Phillip L.B. Halpern (619) 557-5165 Wife of Former Congressman Agrees to Forfeit Proceeds From Home Sale and Pay IRS More Than $1.6 Million in Taxes, Penalties and Interest United States Attorney Carol C. Lam announced today that United States District Court Judge Dana M. Sabraw issued an Order resolving the forfeiture action filed against the Rancho Santa Fe home of then-Congressman Randall Cunningham and his wife Nancy. Pursuant to this order, Mrs. Cunningham will forfeit her entire interest in the proceeds from the sale of the Cunninghams' Rancho Santa Fe home — including $760,000 in equity predating Cunningham's unlawful activities. In addition, Mrs. Cunningham also signed a closing agreement with the Internal Revenue Service (IRS) in which she admitted committing civil tax violations and agreed to pay more than $1 million in taxes and more than $600,000 in penalties. Rather than return to Mrs. Cunningham the $760,000 in equity not derived from criminal activity, the government will apply these funds directly to her outstanding tax liability. The United States filed this civil forfeiture action during the summer of 2005 in order to protect the public's interest in the Cunningham home, which had been financed with more than $1 million in bribe proceeds. On March 3, 2006, former Congressman Cunningham was sentenced to serve 100 months in custody based on his conspiring to commit Bribery, Honest Services Fraud and Tax Evasion. While the forfeiture case was pending, the United States Attorney's Office consented to the sale of the Rancho Santa Fe home, which resulted in approximately $2 million in proceeds that were placed in escrow pending the resolution of forfeiture case. As part of his plea agreement, Mr. Cunningham forfeited his entire interest in these proceeds. Mr. Cunningham also agreed to pay to the Internal Revenue Service (IRS) more than $1.6 million in taxes, penalties, and interest. United States Attorney Lam stated, "Today's order returns nearly $2 million to the public fisc, and ensures that the Cunninghams in no way profit from the sordid conduct that occurred in this case." FBI Special Agent-in-Charge Daniel R. Dzwilewski commented, "The government will continue to ensure that assets obtained as a result of criminal activity will be repatriated to the American public." "Failure to report income from any source is a serious matter," said Kenneth Hines, Special Agent in Charge, IRS Criminal Investigation. "Individuals who disregard the U.S. tax code will be aggressively pursued." Case Number: 05cv1450-DMS(AJB) AGENCIES Federal Bureau of Investigation Internal Revenue Service - Criminal Investigation Division Defense Criminal Investigative Service Top Printable view Share this page Last Modified: 12/18/2006 How Do I Find... Student loans, forgiveness College accreditation No Child Left Behind FERPA FAFSA 1098-E Tax Form 2015 Budget Proposal More > Information About... Transforming Teaching Family and Community Engagement Early Learning K-12 Reforms More > Connect Facebook Twitter YouTube Email RSS Google+ More > MISUSED FOIA OIG Fraud Hotline Our mission is to promote student achievement and preparation for global competitiveness by fostering educational excellence and ensuring equal access. Student Loans Repaying Loans Defaulted Loans Loan Forgiveness Loan Servicers Grants & Programs Apply for Pell Grants Grants Forecast Open Grant Competitions Find Grant Programs by Eligibility Laws & Guidance No Child Left Behind FERPA Civil Rights Data & Research Education Statistics Postsecondary Education Data State Education Data Nation's Report Card What Works Clearinghouse About Us Contact Us ED Offices Jobs News FAQs Budget, Performance Notices FOIAPrivacySecurityInformation qualityInspector GeneralWhitehouse.govUSA.govBenefits.govRegulations.gov
Wife of Former Congressman Agrees to Forfeit Proceeds from Home Sale and Pay IRS More Than $1.6 Million in Taxes, Penalties and Interest. San Diego, CA, October 6, 2006
Published by the Department of Education, Office of Inspector General on 2006-10-06.
Below is a raw (and likely hideous) rendition of the original report.