Sunday, October 12, 2008

Former CIA Director Defrauds U.S.

Foggo, of Vienna, pleads guilty.

By Ken Moore, The Connection
October 7, 2008

Former CIA Executive Director Kyle "Dusty" Foggo, who served two years as a Deputy Ethics official in the agency and completed CIA ethics training eight times, pleaded guilty last week to defrauding the United States.

Foggo, 53 of Vienna, used his position with the CIA to steer millions of dollars in contracts to businesses that involved his best friend, Brent Roger Wilkes, in exchange for hundreds of thousands of dollars in gifts, vacations and meals, including many expensive dinners in Fairfax County, according to court documents.

"Foggo caused the CIA to enter into these lucrative contracts without disclosing his interests," according to U.S. Attorneys Chuck Rosenberg, of the Eastern District of Virginia, and Karen P. Hewitt, of the Southern District of California.

Wilkes also offered Foggo a "high-level, high-paying position" in Wilke’s companies, as well as naming Foggo as one of the trustees of his estate, according to federal court documents.

Wilkes is currently serving a 12-year sentence following his conviction in the Southern District of California for bribing former U.S. Rep. Randall "Duke" Cunningham (R-Calif.), according to Hewitt and Rosenberg.

WILKES AND FOGGO were originally indicted together in California in February 2007, but following Wilke’s sentencing in the Cunningham bribery case in February 2008, "the government elected to proceed against Foggo alone in the Eastern District of Virginia," according to Hewitt and Rosenberg.

Foggo faces a maximum possible sentence of 20 years in federal prison, a $250,000 fine and three years of supervised release, according to Hewitt and Rosenberg.

U.S. District Court Judge James C. Cacheris is scheduled to sentence Foggo on Jan. 8, 2009 in federal court in Alexandria.

Wilkes, of California, controlled numerous businesses and maintained an office in Chantilly. Foggo misrepresented to his colleagues at the CIA "the background and experience" of Wilkes and Wilke’s associates "in order to influence the CIA to hire them as contractors or employees," according to court documents.

Foggo also gave Wilkes classified information to help Wilkes pursue government contracts.

Examples of gifts Wilkes gave Foggo in exchange, according to the federal superseding indictment against Foggo, include:

* Paying more than $50,000 for a vacation in Scotland for his and Foggo’s families in August 2003 and more than $30,000 for a vacation in Hawaii in December 2003.

* Paying more than $700 for a dinner with Foggo at the Serbian Crown restaurant in Great Falls in November 2004.

* Paying for $2,900 for a dinner at The Capital Grille in Tysons Corner in June 2005, as well other meals there in November 2004 ($700), March 2005 ($800) April 2005 ($1,000), and June 2005 ($600).

* Paying $2,000 for a cigar humidor.

* Paying $900 for dinner at Ruth’s Chris Steak House in Fairfax in November 2004. ...