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November 6th, 2007 - Jury Finds Wilkes Guilty

News article by the San Diego Union-Tribune

Profile of Kyle Foggo

Jury Finds Wilkes Guilty

Contractor convicted of conspiracy and bribery in Cunningham scandal

 

By Greg Moran

San Diego Union-Tribune

November 6, 2007

 

A federal jury convicted Poway defense contractor Brent Wilkes yesterday for his role in engineering the biggest bribery scheme in congressional history, a verdict that closed another chapter in the scandal surrounding former Rep. Randy “Duke” Cunningham.

 

Wilkes stood with his hands clasped in front of him next to his lawyer, Mark Geragos, as the court clerk read the word “guilty” 13 times in the packed courtroom of Judge Larry A. Burns.

 

He was convicted of conspiracy, bribery, money laundering and honest services wire fraud. He shook his head “no” slightly and gave a small frown twice – once at the start of the litany, and again when the conviction for bribery was announced.

 

Other than that, he showed no emotion, and left the courthouse without commenting.

 

U.S. Attorney Karen Hewitt said in a statement afterward that she was “gratified” by the verdict.

 

Geragos, however, said that the verdict “was fatally flawed” and that the defense had “more than ample evidence to raise reasonable doubt.”

 

“I fully expected the worst case to be a hung jury,” he said.

 

Wilkes faces more than 20 years in prison when he is sentenced Jan. 28.

 

The jury of seven men and five women deliberated four days before announcing they had reached a verdict just before 11:30 a.m. yesterday. Most of the panel declined to comment, but the forewoman said the evidence against Wilkes was too strong.

 

Tyheshia Smith-Kruck, a microbiologist, said the testimony of Wilkes' nephew, Joel Combs, and former defense contractor Mitchell Wade was important to her.

 

Wade pleaded guilty to bribing Cunningham and agreed to testify against Wilkes in the hopes of getting a lighter sentence. Combs, one of the first employees Wilkes hired at his company, ADCS Inc., gave jurors an insider's view of the company.

 

Combs recalled how Wilkes showered Cunningham with gifts and enjoyed ready access to the congressman for years. He said he was instructed not to put Cunningham's name on company expense reports and records.

 

While that testimony and the documents prosecutors amassed against Wilkes were persuasive, the forewoman said she would have liked to hear from Cunningham.

 

“I thought Cunningham would be put on the stand. I was surprised he wasn't,” Smith-Kruck said. “It would have been nice to hear his perspective on what happened, seeing he is at the center of all this.”

 

The jury, however, did hear from Wilkes.

 

He testified in his own defense for almost two days. He blamed Wade for bribing Cunningham, said Combs was not as central a figure in his company as prosecutors contended, and offered an explanation for nearly every accusation the government made against him.

 

Smith-Kruck was not convinced.

 

“I really didn't believe anything he had to say,” she said.

 

Wilkes insisted he was innocent almost as soon as the indictment charging him was unsealed Feb. 13. He accused prosecutors then of manufacturing the charges against him for political reasons and said he would be vindicated.

 

During the three-week trial, prosecutors laid out a largely circumstantial bribery case, knitting together a pattern of gift-giving by Wilkes to Cunningham over nearly a decade. Former Cunningham staffers testified about the cozy relationship between the two men, and Pentagon officials testified about interactions with the pair.

 

In exchange for the gifts, Cunningham did Wilkes' bidding – promoting congressional earmarks that would help ADCS, and berating bureaucrats to steer work to Wilkes, prosecutors said.

 

One Pentagon official testified he got such a call from Cunningham while he was in Europe on NATO business.

 

There were expensive meals, computers and trips on private planes to fancy resorts, including a $6,600-per-night stay at a Hawaiian beachfront hotel.

 

That was the setting for the most salacious allegation: that Wilkes had Combs hire two prostitutes for him and the congressman. Both women testified about the encounter, although Wilkes denied it.

 

Smith-Kruck said the prostitutes had no impact on her decision. Instead, she said, a $525,000 wire transfer in May 2004 from Wilkes to a New York financial company was important evidence of the scheme.

 

That company was controlled by Thomas Kontogiannis, who pleaded guilty in February to providing $1.1 million in mortgages to Cunningham for his Rancho Santa Fe mansion, even though he knew the house was bought with proceeds from illegal activity.

 

Wilkes testified that the wire transfer was not, as the government said, a bribe to pay off Cunningham's mortgage on the mansion. Instead, he said, it was a short-term investment he made – at Cunningham's suggestion.

 

But prosecutors noted that there was no description of the investment, nor was there a contract or prospectus that Wilkes received before or after the wire transfer. Wilkes made the transfer just days before Cunningham paid off the mortgage.

 

Smith-Kruck said both the timing of the wire transfer and the lack of records Wilkes had about it convinced her that it was a bribe, as the government said.

 

Geragos, outside of court, vowed an appeal. He said his client was “shocked” by the verdict and said he believed the defense had raised reasonable doubt about the government's case.

 

He told Burns he would make a bid to get the conviction thrown out because grand jury secrets were leaked by the government to the media before the indictment.

 

He said he will subpoena at least two reporters to testify about the source of their information. But Shaun Martin, a professor at the University of San Diego School of Law, said Geragos will have to show the verdict would have turned out differently – a very high hurdle.

 

Wilkes' sentence will likely be longer than the eight-year, four-month term Cunningham received after the Rancho Santa Fe Republican pleaded guilty to conspiracy and tax evasion and admitted taking $2.4 million in bribes from Wilkes and others.

 

Federal sentencing guidelines carry strict punishments for bribery, even for someone with no criminal past like Wilkes, said Martin.

 

The value of the federal contracts that prosecutors said Wilkes' company received as a result of bribing the congressman will also weigh heavily. Prosecutors said he gave Cunningham $625,000 in cash and tens of thousands more in gifts, and received more than $80 million in contracts.

 

“The more you steal, the more that you benefit from your crime, the harsher the federal sentence,” Martin said. “This guy got a lot of money. And as a result, he's going to get a lot of time.”

 

The problems for Wilkes, once the highflying head of his own company, which he began in 1995, are far from over.

 

Wilkes, 53, faces trial in a second case charging that he gave gifts, expensive golf vacations and promises of a job to former CIA executive director Kyle “Dusty” Foggo, a childhood friend, in return for Foggo's help in getting lucrative contracts from the agency.

 

Staff writers Dana Littlefield and Angelica Martinez contributed to this report.

 

External link: http://www.signonsandiego.com/news/metro/20071106-9999-1n6wilkes.html

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