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Tuesday, July 04, 2006

Goode's war chest turns up new MZM donor

Former MZM official Richard A. Berglund has pleaded guilty to making illegal contributions.

Another former MZM Inc. official has been charged with illegally contributing money to U.S. Rep. Virgil Goode's re-election campaign.

Richard A. Berglund, who headed up the defense contractor's Martinsville office before he moved to Florida earlier this year, is accused of making straw contributions on behalf of MZM's former chief executive officer, Mitchell Wade.

Berglund could not be reached for comment on Monday, and there is still no indication that Goode himself is under criminal investigation.

Wade pleaded guilty in February to showering gifts upon California Congressman Randy "Duke" Cunningham and making illegal campaign contributions to two other lawmakers, one of whom has been identified in court documents and campaign finance reports as Goode, R-Rocky Mount.

Federal law makes it illegal for one donor to contribute more than $2,000 per candidate per election, but Wade admitted circumventing that by paying his employees to make contributions to lawmakers.

According to the complaint against Berglund, Wade gave Berglund money in March 2005 and asked him to make donations to "Representative A." Berglund allegedly then supplemented $3,000 of Wade's money with $1,000 of his own to make two donations of $2,000 to the campaign -- one in Berglund's name and one in his wife's name.

The document also claims that Berglund gave $2,000 each to two unnamed MZM employees and told them Wade wanted them to donate it to "Representative A's" campaign.

All four wrote checks and gave them to Wade, who handed them to the congressman at a fundraising event on March 4, 2005, according to the complaint.

Federal Election Commission records show that a retired Lt. Col. Richard A. Berglund and a Robin Berglund, both of Martinsville, each made a $2,000 donation to Goode's campaign in March 2005.

Goode's press secretary, Linwood Duncan, confirmed Monday that the congressman is the "Representative A" to whom Berglund allegedly gave money. But in a written statement, Goode denied any wrongdoing in connection with the deal.

"I did not know that the donations from Mr. Berglund and his wife were straw donations," the statement read. "Mr. Wade stated in his agreement with the U.S. District Attorney that he did not inform me that the contributions were straw contributions."

When Wade's scheme became public, Goode decided to give to charity the $90,500 he had received from MZM's political action committee, employees and family.

But critics have still said it looks as though Goode was being bought by MZM, and the government watchdog group Common Cause requested in May that the House ethics committee investigate the transactions.

Goode used his seat on the House Appropriations Committee to seek $3.6 million for a Foreign Supplier Assessment Center that went to MZM. He also helped negotiate a state economic incentives package for the company.

Goode has maintained that his motivation in dealing with MZM was to bring jobs to an economically deprived region of his 5th Congressional District.

Kim Adkins, director of the Martinsville-Henry County Chamber of Commerce, said Richard Berglund was chair-elect of the chamber board until he moved to Florida in the spring.

Court documents indicate that Berglund is being represented by Washington, D.C., attorney Thomas G. Connolly, who did not return a call Monday.

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