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September 29th, 2008 - Ex-CIA Executive Pleads Guilty to Wire Fraud

News article by the Associated Press

News article by the New York Times

Profile of Kyle Foggo

Ex-CIA Executive Pleads Guilty to Wire Fraud

 

By Matthew Barakat

Associated Press

September 29, 2008

 

Alexandria, Va. - A former high-ranking CIA official pleaded guilty Monday to abusing his influence within the agency to direct lucrative contracts toward an old friend who showered him with tens of thousands of dollars worth of gifts.

 

Kyle "Dusty" Foggo, 53, of Vienna, Va., struck a deal in U.S. District Court, pleading guilty to a single count of wire fraud for "depriving the United States and its citizens of their right to his honest services."

 

As part of the plea, prosecutors dropped 27 other counts against him and agreed to seek a prison term no longer than three years and a month.

 

Foggo was the agency's third-highest ranking officer from 2004 to 2006 and responsible for its daily operations. He will be sentenced on Jan. 8 and faces up to 20 years in prison. However, it is far more likely that U.S. District Judge James Cacheris will impose a sentence more closely in line with the three-year term recommended by prosecutors.

 

Foggo was not charged with taking bribes, but prosecutors said in court papers that he received up to $70,000 worth of gifts from his friend Brent Wilkes, a defense contractor. The gifts included expensive dinners at gourmet steakhouses and free vacations for Foggo and his family in Scotland and Hawaii.

 

He and his lawyer declined comment after the hearing.

 

The case against Foggo resulted from an investigation of former congressman Randy "Duke" Cunningham, R-Calif., who admitted taking bribes from Wilkes. Cunningham pleaded guilty and was sentenced to more than eight years in prison. Wilkes was convicted and sentenced to 12 years.

 

Prosecutors said Foggo had a standing offer of high-paying employment with Wilkes if he ever left the CIA. In return, prosecutors said Foggo helped Wilkes' company obtain multiple contracts from the CIA and conceal the contractor's connections to the deal.

 

According to court papers, one contract was for the delivery of bottled water overseas where Foggo was a supervisor. The contract amount was not disclosed, but prosecutors said the price reflected a 60 percent markup.

 

Among the charges dropped were allegations that Foggo pulled strings to get his mistress hired by the CIA and stationed close to him.

 

Foggo was subdued in court Monday when he entered his guilty plea and answered questions from the judge acknowledging that he understood the consequences. He remains free on bond pending his sentencing.

 

The plea comes three weeks after prosecutors complained that Foggo was threatening to expose the cover of practically every agent with whom he had contact as part of his defense.

 

CIA spokesman Mark Mansfield said the agency cooperated with investigators but declined to comment on specifics of the case.

 

Copyright © 2008 The Associated Press.

 

External link: http://ap.google.com/article/ALeqM5hSoMDsA5PakZOd1o1yx655Egw9ngD93GHJNG0


Ex-C.I.A. Official Admits Corruption

 

By David Johnston

New York Times

September 29, 2008

 

Washington - Kyle D. Foggo, a former high-ranking official at the Central Intelligence Agency, pleaded guilty Monday to one felony corruption count, admitting that he had directed C.I.A. contracts to companies operated by a longtime friend.

 

Mr. Foggo’s plea, entered in the Federal District Court in Alexandria, Va., was to a count of theft of his honest services, a charge centering mainly on his relationship with that friend, Brent R. Wilkes, a San Diego military contractor. In a statement of facts accompanying the plea, Mr. Foggo admitted that he had concealed the relationship from colleagues.

 

From 2004 to 2006, Mr. Foggo was the C.I.A.’s executive director, its third-ranking official. That post made him the agency’s chief administrative officer, responsible for its contracts with outside vendors.

 

He and Mr. Wilkes had been friends in California since childhood - in fact, each had named a child after the other - and his indictment in February 2007 charged that Mr. Foggo had concealed that he had a standing offer of a high-paying job at one of Mr. Wilkes’s companies.

 

In the statement of facts made public Monday, Mr. Foggo admitted hiding their friendship even as he steered contracts to Mr. Wilkes “through direct and indirect means.”

 

Mark J. MacDougall, a lawyer for Mr. Foggo, said after the plea was announced, “Mr. Foggo made the difficult decision to bring this case to a close in the best interests of his family and to get on with the rest of his life.”

 

Sentencing is set for Jan. 8 before Judge James C. Cacheris. Mr. Foggo, initially charged with 28 felony counts, had been scheduled to go to trial on Nov. 3. By pleading guilty to one count, he still faces a maximum penalty of 20 years in prison and a fine of $250,000. But in return for his plea, prosecutors agreed to seek considerably lesser punishment.

 

His friend Mr. Wilkes built a lucrative business in the 1990s with government contracts he won through connections to powerful members of the House Appropriations Committee. In February, Mr. Wilkes was sentenced to 12 years in prison for bribing Representative Randy Cunningham, Republican of California, who had previously pleaded guilty to corruption charges and is serving an eight-year sentence.

 

Mr. Foggo was best known for a role he played before rising to No. 3 at the C.I.A. A freewheeling covert logistics officer, he was credited at the agency with organizing the secret supply pipelines that fanned out from Europe at the onset of war to remote regions of Afghanistan and Iraq, at times air-shipping saddles for horseback-riding C.I.A. officers.

 

From the relative obscurity of the logistics job, he was chosen to be executive director in November 2004 by Porter J. Goss, who had succeeded George J. Tenet as director of central intelligence. Mr. Foggo resigned in May 2006.

 

External link: http://www.nytimes.com/2008/09/30/washington/30inquire.html

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