Federal agents on Friday reportedly searched the Washington, D.C., offices of MZM Inc. as well as a yacht that U.S. Rep. Randy "Duke" Cunningham has said he uses as a residence while in Washington and his San Diego-area home.

The U.S. attorney's office in San Diego issued a written statement confirming the searches as part of a grand jury investigation into Cunningham's dealings with MZM and its owner, Mitchell J. Wade. "Today's operations are part of an ongoing law enforcement investigation being conducted by the U.S. Attorney's Offices in San Diego and Washington, D.C., the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Internal Revenue Service," the statement read. "Because it is a pending investigation, it would be inappropriate to comment further at this time." Questions have been raised about whether Cunningham used his position on a powerful congressional subcommittee to steer contracts to Wade's company. Cunningham was served with a grand jury subpoena earlier this week seeking unspecified documents, according to an attorney the Escondido Republican has hired.

The 50th District congressman's October 2003 real estate transaction with Wade is believed to be at the heart of the investigation. In that transaction, Wade paid $1.675 million for Cunningham's Del Mar Heights home, put in back on the market two months later and then sold it for $700,000 less than what he had paid Cunningham.

In the months following that transaction, MZM reported that its revenues from contracts with the Defense Department had tripled in revenue. Cunningham has denied any wrongdoing. In a written statement issued from his Washington office last week, the 63-year-old former Top Gun Navy pilot said he and Wade are personal friends but that he has done nothing to influence contract awards to MZM.

Cunningham also said he began living on Wade's boat, the "Duke-Stir," in April 2004 and had paid more than $13,000 in maintenance and dock fees in lieu of traditional rent.

Friday's statement from the U.S. attorney's office is the first time that the IRS and Defense Criminal Investigative Service have been identified as participating the probe of the Cunningham-Wade relationship. Cunningham has declined to comment on whether he is currently living on the yacht.