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Nancy Cunningham, IRS Agree To Deal

POSTED: 8:15 pm PDT October 6, 2006
UPDATED: 8:33 pm PDT October 6, 2006

The estranged wife of former Republican Rep. Randy "Duke" Cunningham agreed Friday to pay $1.6 million in back taxes and penalties for her involvement in the scandal that landed him behind bars.

Nancy Cunningham agreed to the settlement filed Friday in federal court in San Diego, said prosecutor Jason Forge.

She will not be prosecuted for any criminal charges related to her husband's illicit deals, Forge said.

Randy Cunningham, the former congressman, pleaded guilty in November to conspiracy and tax evasion for taking $2.4 million in bribes in return for unduly influencing the awarding of Defense Department contracts.

The bribes were paid in a variety of ways, including cash, checks, rugs, antiques, furniture, yacht club fees, boat repairs, moving costs and vacation expenses.

The bribery, fraud and tax evasion conspiracy plea involved the purchase of Randy Cunningham's home in Del Mar at an artificially inflated price by a defense contractor; a $200,000 down-payment by a third co-conspirator to enable Cunningham to purchase a condominium in Arlington, Va.; the purchase and maintenance by a defense contractor of a yacht, the "Duke-Stir"; and a Rolls-Royce for Randy Cunningham.

In March, Randy Cunningham was sentenced to eight years and four months in federal prison.

Nancy Cunningham agreed to pay $1 million in back taxes to the Internal Revenue Service and $600,000 in penalties, Forge said.

Nancy Cunningham will soon file for divorce, her lawyer said.

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