Ex-CIA Official Indicted

13 Feb 2007 // CLICK HERE TO LISTEN TO THIS STORY

MADELEINE BRAND, host:

Remember the Randy "Duke" Cunningham bribery scandal? The former California congressman is now in prison after taking bribes in exchange for federal contracts. Now, a former high-ranking CIA official is accused of taking similar bribes - he is Kyle "Dusty" Foggo.

NPR's Scott Horsley reports.

SCOTT HORSLEY: Former CIA Executive Director Dusty Foggo and San Diego defense contractor Brent Wilkes are lifelong friends. They went to high school, then college together, and each man named a son after the other. Today, Foggo and Wilkes are facing federal charges together, that their friendship took a criminal turn.

U.S. Attorney Carol Lam says Foggo used his influence at the CIA to steer hundreds of thousands of dollars in government contracts to Wilkes, or shell companies he controlled, while accepting lavish meals and vacations in return.

U.S. Attorney CAROL LAM (U.S. Attorney, San Diego, California): These indictments are a firm and unequivocal statement that there is so place in government for self-dealing and corruption.

HORSLEY: Foggo abruptly quit the CIA last spring shortly after his office was searched by the FBI. For Wilkes, a prominent Republican fundraiser, the criminal charges are new, but he was identified more than a year ago, as one of two defense contractors accused of paying bribes to former Congressman Duke Cunningham. The second contractor, Mitchell Wade, has already pleaded guilty. Wilkes' attorney, Mark Geragos, says his client plans to fight the charges.

Mr. MARK GERAGOS (Brent Wilkes' Attorney): My client has been the subject of 18 months of unrelenting smears and leaks, and most of them, demonstrably false. So at this point, there is a palpable sense of relief that we'll be able to, at least, get into a courtroom and test most of these things, and be able to refute them.

HORSLEY: The new indictment provides more sordid details of the alleged conspiracy between Wilkes and former Congressman Cunningham. The contractor is accused of bribing the congressman with cash, meals and even prostitutes. In return, Assistant U.S. Attorney Phillip Halpern says, Cunningham repeatedly leaned on the Pentagon to keep money flowing to Wilkes' companies.

Mr. PHILLIP HALPERN (Assistant U.S. Attorney): The congressman pressured various DOD officials to pay for services that were not yet rendered, or for goods that were not yet purchased.

HORSLEY: Prosecutors say in some cases, the cost of the contracts was wildly inflated. Computers were sold to the defense department at nine times their list price. Bottled water sold to the CIA was marked up 60 percent.

Watchdog Melanie Sloane, who heads Citizens for Responsibility and Ethics in Washington, worries this case not unique. She notes the federal government is spending almost twice as much on contractors as it was at the beginning of the decade. She doubted there's enough oversight to see that taxpayers are getting their money's worth.

Ms. MELANIE SLOANE (Executive Director, Citizens for Responsibility and Ethics): Well Wilkes really had no great experience. He just decided to be defense contractor. Basically, he was a middleman. He created contracts by buying things and selling them to government agencies and members of Congress.

HORSLEY: Sloane says the lack of oversight is a particular problem with intelligence contracts. Even federal prosecutors were guarded yesterday in discussing the kind of business the CIA steered Wilkes' way. For San Diegos' U.S. Attorney, the indictments of Foggo and Wilkes come hardly a day too soon.

Carol Lam, who has focused much of her energy on white-collar corruption is being forced out of office this week. Lam says she's confident her successor will continue to pursue the case.

Scott Horsley, NPR News, San Diego.