MZM Inc.

MZM Inc. is a "high-tech national security firm based in Washington, D.C.," Brooke Williams of the Center for Public Integrity wrote.

"Mitchell J. Wade started MZM in 1993 and stepped down in June [2005] after news reports suggested he did financial favors for Rep. Randy "Duke" Cunningham (R-Calif.) while the lawmaker pushed funding in Congress for programs on classified military intelligence programs on which MZM worked." [1]

Athena Innovative Solutions, Inc.
On September 30, 2005, Veritas Capital, "a leading private equity firm focused on the defense and federal sectors," announced that it had "completed the previously announced agreement to purchase selected assets of MZM, Inc."

The "newly created subsidiary" is Athena Innovative Solutions, Inc. "Under the leadership and control of Veritas, Athena will continue to provide a broad array of services to the national security community. Veritas and Athena will retain MZM Inc.'s employees ... James C. King will serve as the President and Chief Executive Officer for Athena." [2]

Also see Renae Merle, "MZM's Trump Cards: Contracts, Clearances. Veritas Buyout Shows Value of the Two," Washington Post, August 19, 2005.

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About

MZM Inc. "provides intelligence gathering, technology and homeland security analysis and consulting for both international and domestic governments and private-sector clients. The firm also provides consulting on political and public message strategies. Its government clients include Congress, the White House, the Defense Department, the U.S. intelligence community, the Foreign Terrorist Tracking Task Force and state and local governments, according to the company's Web site. MZM refused to provide any information, however, about its corporate structure, including names of other principals," Williams stated. "In addition to its D.C. headquarters, MZM has field offices in Miami, Tampa, San Antonio, San Diego and Suffolk, Va. The company employs about 70 people."

Government Ties

According to the Center for Public Integrity research (as stated):

• Joseph Romano, executive vice president, "is the former head of the Defense Intelligence Agency's Technology Assessment Group."
• James C. King, senior vice president.
• Susan Hogan, executive vice president, "National Security Liaison, worked for eight years on the Senate Appropriations Committee, where she handled classified defense spending."
• Wayne M. Hall, "vice president for homeland security and future conflict, is a retired military general. He commanded a military intelligence battalion during the 1991 Gulf War."

Influence Peddling

Randy "Duke" Cunningham

Former eight-term Republican congressman Randy "Duke" Cunningham "sold his home in November 2003 to Mitchell J. Wade, a campaign contributor and close friend." [3]

"Wade paid $1.7 million for the 3,826-square-foot house in wealthy, seaside Del Mar, just north of San Diego. He put it back on the market soon after and eventually took a $700,000 loss when he resold it in October 2004. During that span, home prices in San Diego County rose an average of nearly 25 percent.

"Meanwhile, Wade's little-known company, Washington, D.C.-based MZM Inc., was increasing its federal contracting business. In 2004, MZM tripled its revenue and nearly quadrupled its staff, according to the company's Web site." [4]

"Without citing details, prosecutors said in the documents [filed August 25, 2005,] that Cunningham sold the house in return for his influence in Congress, where he serves on the House subcommittee that oversees Pentagon spending." [5]

Related Links

• Renae Merle and R. Jeffrey Smith, "Pentagon Ends New Work On D.C. Firm's Contract. MZM to Name New CEO as Relationship With Congressman Is Under Investigation," Washington Post, June 28, 2005.
• Nico, "Agents Swarm MZM Headquarters, Cunningham’s Rented Boat," Think Progress, July 1, 2005.
• Mark Walker, "Feds raid Cunningham home, MZM offices and boat," North County Times, July 1, 2005.
• Charles R. Babcock, "Developer Helped Congressman By Buying Boat, Arranging Loan," Washington Post, July 5, 2005.

Virgil Goode

The Roanoke Times reported June 2, 2005, that:

• U.S. Rep. Virgil Goode (R-Virginia) "was instrumental in MZM’s decision to locate an office in Martinsville, according to a press release from Gov. Mark Warner."
• "MZM was the top campaign contributor to Goode in 2004, according to Web site opensecrets.org. ... Actually, MZM was the top campaign contributor to Virgil Goode in the 2003-2004 election cycle, which includes the year 2003 as well as 2004."

Related Links

• News Release: "Tobacco Funds Help Bring Jobs to Martinsville. MZM, Inc. will locate new facility in Clearview Business Park," Virginia Tobacco Commission, November 3, 2003.
• News Release: "Defense Contractor to Locate in Martinsville. Governor Warner assists in decision to create 150 new jobs in Southside Virginia," Office of the Governor, November 3, 2003. See photo.
• Duncan Adams, "Martinsville branch of MZM may get funds," Roanoke Times, June 2, 2005.
• "Virgil Goode and MZM: There’s a story here," Waldo Jaquith.org, June 12, 2005.
• "A Special Relationship of Favors: MZM Inc, Virgil Goode and Ethical Questions in Politics," Irregular Times, June 13, 2005.
• Peter Hardin, "Goode ready to offer refunds. He says he does not want donations tied to firm under scrutiny," Richmond Times Dispatch, July 1, 2005.

Katherine Harris

Not only did MZM's PAC donate "$17,000 to Cunningham from 2000 to 2004," but during same period, MZM PAC gave Katherine Harris (R-Florida) $10,000. [6]

Open Secrets reported that Harris's top contributor, MZM Inc., donated $50,000, more than her 2nd, 3rd, and 4th highest contributors combined. [7]

Related Links

• Katherine Harris's Top Contributors, Open Secrets.org.
• Marcus Stern, "Workers say MZM founder pressed them to give to PAC," San Diego Union-Tribune, June 22, 2005.
• Erica Werner, "Rep. Harris offers to return political donations to MZM workers," San Diego Union-Tribune, June 30, 2005.
• William March and Richard Lardner, "Harris' Top Campaign Donor Subject Of California Probe," Tampa Bay Tribune Online, June 30, 2005.

William Scott Rich III

"Two months after MZM Inc. was given its first order in October 2002 to perform services for the Army's National Ground Intelligence Center (NGIC), the company hired" William Scott Rich III, "the son of the center's senior civilian official, Executive Director William S. Rich, Jr., according to present and former intelligence center employees," Walter Pincus reported in the July 17, 2005, Washington Post.

"William Scott Rich III became involved in the FIRES program soon after he was hired in December 2002, and MZM received multimillion-dollar orders to continue work on FIRES and other programs," Pincus wrote.

Contact Details

Former

MZM Inc.
1523 New Hampshire Ave., NW
Washington, DC 20036
Phone: 202 518-5240
Fax: 202 518-5241
http://www.mzminc.com

Current

Athena Innovative Solutions, Inc.
1523 New Hampshire Avenue, N.W.
Washington, D.C. 20036
Phone: 202 518-5240 phone
Fax: 202 518-5241 fax
http://www.mzminc.com

SourceWatch Resources

• ADCS, Inc. ("MZM was at one time an ADCS subcontractor" [8])
• Bush administration scandals
• Republican 'culture of corruption'

External links

Data

• Government Contracts Won: 2004 for the Defense Department: MZM Inc. Link also available for 2003 contract awards.

Articles & Commentary

• "MZM Inc. Announces the Addition of Ms. Kay Coles James, Former Director of the Office of Personnel and Management, as their Sr. Executive Vice President of National Security Transformation," Business Wire (Highbeam.com), May 3, 2005.
• Letter: Request for Records from Citizens for Responsibility and Ethics in Washington (CREW) to Chief of Naval Operations, Department of the Navy, June 20, 2005.
• "CREW Files FEC Complaint Against MZM, Inc.," CREW, June 21, 2005.
• Seth Hettena, "Watchdog group files FEC complaint against defense contractor," Associated Press (Monterey Herald), June 29, 2005.
• Renae Merle and R. Jeffrey Smith, "Pentagon Ends New Work On D.C. Firm's Contract. MZM to Name New CEO as Relationship With Congressman Is Under Investigation," Washington Post, June 28, 2005.
• Marcus Stern, "Firm in 'Duke' controversy may be sold," San Diego Union-Tribune, June 28, 2005: "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."
• Peter Hardin, "Kilgore rejects MZM donation," Richmond Times-Dispatch, July 15, 2005.
• Walter Pincus, "Intelligence Center, Contractor MZM on Cozy Terms," Washington Post, July 17, 2005.
• Marcus Stern, "Procurement deal keeps lawmaker's friend busy," San Diego Union-Tribune, July 25, 2005.
• ebosse, "Where There's Smoke: A Whiff of a White House Scandal?" TPM Cafe, July 29, 2005.
• Nick Wakeman, "Veritas to acquire troubled MZM," Washington Technology, August 18, 2005.
• "An MZM by any other name…," Waldo Jaquith.org, August 18, 2005: "A company named Veritas Capital has announced their acquisition of 'selected assets MZM, Inc.'."
• News Release: "Veritas Capital Completes Acquisition of Selected MZM, Inc. Assets," Veritas Capital, September 30, 2005.
• Matt Kelley and Jim Drinkard, "Secret military spending gets little oversight," USA Today, November 9, 2005.
• Josh Marshall, Talking Points Memo, November 28, 2005.
• Walter Pincus, "Pentagon Expanding Its Domestic Surveillance Activity Fears of Post-9/11 Terrorism Spur Proposals for New Powers" Washington Post, November 27, 2005.
• Judd, "Cunningham and MZM: The White House Connection," Think Progress, November 28, 2005: "Why did the White House hire MZM, a 'defense and intelligence firm,' to buy office furniture for the White House?".
• Joseph Cannon, "Wilkes: The Invisible Empire," Cannonfire, December 2, 2005.