- The Washington Times - Friday, May 12, 2006

Federal agents yesterday searched the home and office of the CIA’s outgoing executive director as part of an ongoing investigating into accusations he improperly intervened in the award of more than $2 million in CIA contracts to a San Diego businessman and longtime friend.

Kyle “Dusty” Foggo, who announced his resignation on Monday, has been the focus of an investigation by the FBI, the CIA’s Office of Inspector General, the Internal Revenue Service and the Defense Criminal Investigative Service over his ties to businessman Brent R. Wilkes, named as a co-conspirator but not charged in the corruption case against former Rep. Randy “Duke” Cunningham.

The California Republican pleaded guilty in November to taking $2.4 million in bribes in return for federal contracts and was sentenced to eight years in prison.

Mr. Foggo was named in November 2004 by CIA Director Porter J. Goss, who has since resigned, to the agency’s No. 3 position, where he oversaw the agency’s day-to-day operations. An undercover operative for more than 20 years in postings in Honduras, Austria and Germany, he was not charged in the Cunningham case and has denied any wrongdoing.

The CIA, in a statement, said Mr. Foggo “maintains that government contracts for which he was responsible were properly awarded and administered.”

FBI agents, armed with sealed search warrants, led raids on Mr. Foggo’s Virginia home and his office at the CIA’s Langley headquarters.

CIA spokeswoman Jennifer Millerwise Dyck, in a statement, said the agency is cooperating fully with the Justice Department and the FBI, adding that “agency leaders outside of the [Inspector General’s Office] were informed [of the searches] just prior to the execution of the search warrants, in keeping with standard law-enforcement procedures.”

In the Cunningham case, court documents said an unindicted co-conspirator gave the former congressman $525,000 in bribes in return for $6 million in government contracts. The co-conspirator has been identified as Mr. Wilkes.

Mr. Wilkes also is suspected of providing Cunningham with limousines and prostitutes at two Washington hotels, where Mr. Foggo said he attended poker parties. Mr. Foggo has acknowledged being at the parties but denied seeing any prostitutes and called any accusation to the contrary “false, outrageous and irresponsible.”

Investigators are looking into Mr. Foggo’s role, if any, in the award of a $2.4 million contract to Mr. Wilkes to provide water and household items to CIA agents operating in war zones, including Afghanistan and Iraq.

Cunningham, 64, an eight-term congressman and former Navy “top gun” pilot, pleaded guilty to accepting bribes to help a Washington-based defense contractor get business. He admitted to charges of mail fraud, wire fraud and income-tax evasion, also acknowledging he underreported his income in 2004.

Prosecutors said Cunningham “demanded and received” bribes from defense contractor Mitchell Wade, founder of MZM Inc., in exchange for official favors. They said Wade also let Cunningham live rent-free on his yacht at the Capital Yacht Club and that MZM donated to Cunningham’s campaigns.

Wade admitted in federal court that he conspired to funnel more than $1 million in bribes to Cunningham. He pleaded guilty to conspiracy, using interstate facilities to promote bribery and election fraud, and is awaiting sentencing.

Cunningham and Wade are cooperating with federal prosecutors.

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