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Is the Resignation of CIA Director Porter Goss Hookergate Related?
Posted by Jon Ponder
May. 5, 2006

Rumors have been swirling around Washington that CIA Director Porter Goss
may have been involved in the poker and prostitute parties at the
Watergate Hotel hosted by the defense contractors who bribed former Rep.
Duke Cunningham. Goss was chairman of the House Intelligence Committee
when the parties took place, so it is possible he was involved somehow in
either the bribery, the sex with prostitutes or both.

Goss’s abrupt resignation today was offered without a reason — not even
the old Washington bromide of an urgent need to spend more time with his
familiy. The news readers on CNN and MSNBC are pussyfooting around it but
it is hard to see how Goss’s sudden departure after a little more than a
year as head of the CIA is not connected to the Watergate II scandals.

Here’s some background on the scandals that posted on Alternet earlier
today (see article below):

>  According to recent reports, federal investigators have traced the
outlines of a far more extensive network of suspected corruption,
involving multiple members of Congress, some of the nation’s
highest-ranking intelligence officials, bribery attempts including
“free limousine service, free stays at hotel suites at the Watergate
and the Westin Grand, and free prostitutes,” tens of millions of
dollars in federal contracts awarded under dubious circumstances, and
even efforts to influence U.S. national security policy by subverting
democratic oversight…

>  CIA director Goss tied to scandal?

>  Last week, Harper’s magazine reported that party-goers “under intense
scrutiny by the FBI are current and former lawmakers on Defense and
Intelligence committees — including one person who now holds a powerful
intelligence post.” CIA Director Porter Goss is perhaps the only
individual who fits such a description. (”This is horribly
irresponsible. He hasn’t even been to the Watergate in decades,” a CIA
spokeswoman said. When asked if Goss had attended Wilkes’ parties at
the Westin or other locations, she repeated the denial. “It’s horribly
irresponsible. Flatly untrue.”) But the alleged links between Goss,
Foggo, and Wilkes have led some to return to questions raised when Goss
initially selected Foggo to be executive director in November 2004.

-----------

http://www.alternet.org/story/35841/

Sex, Lies, and Government Contracts
By , The Progress Report
Posted on May 5, 2006

The most extensive federal corruption scandal in a century is growing. In
March, former Rep. Randy "Duke" Cunningham (R-CA) was sentenced to more
than eight years in federal prison (the longest sentence ever given to a
member of Congress) for accepting $2.4 million in bribes in exchange for
lucrative defense contracts. Yet Cunningham's crimes, the "magnitude and
duration" of which are compared to the Teapot Dome scandal of the 1920s,
may end up a mere prelude.

According to recent reports, federal investigators have traced the
outlines of a far more extensive network of suspected corruption,
involving multiple members of Congress, some of the nation's
highest-ranking intelligence officials, bribery attempts including "free
limousine service, free stays at hotel suites at the Watergate and the
Westin Grand, and free prostitutes," tens of millions of dollars in
federal contracts awarded under dubious circumstances, and even efforts to
influence U.S. national security policy by subverting democratic
oversight.

The ringleader

At the center of the storm is California defense contractor Brent Wilkes
-- aka "Co-Conspirator #1" in government documents -- "who gave more than
$630,000 in cash and favors" to Cunningham "for help in landing millions
of dollars in federal contracts." Wilkes devoted much of his 20-year
career to "developing political contacts in Washington," a task at which
he excelled, serving recently both as a county finance co-chairman of Gov.
Arnold Schwarzenegger's (R-CA) campaign and as the state finance
co-chairman for President Bush. "Wilkes, his family members and his
employees were heavy campaign contributors to several members of
Congress," and he frequently invited members -- including Cunningham, Rep.
Tom DeLay (R-TX), and House Speaker Dennis Hastert (R-IL) -- on chartered
corporate jets.

The efforts paid off handsomely: "Wilkes won tens of millions of dollars
worth of defense contracts for his companies through the process of
closed-door congressional earmarking of the federal budget." Indeed, "many
of the contracts Wilkes secured" were for projects the Pentagon never even
requested. Wilkes has thus far avoided any criminal charges, but federal
officials are investigating instances of quid pro quo, since the "timing
of Wilkes' many political donations closely parallels the approval of
earmarks for Wilkes' companies."

'Red lights on Capitol Hill'

For more than a decade, Wilkes curried favor with lawmakers and CIA
officials by hosting weekly parties at lavish hospitality suites at the
Watergate and Westin hotels in Washington. Guests would gamble, socialize,
and sometimes receive prostitutes; according to Harper's magazine, the
festivities "began early with poker games and degenerated" into what one
source described "as a 'frat party' scene -- real bacchanals." Mitchell
Wade, another defense contractor who pleaded guilty in February to bribing
Cunningham, has "told federal prosecutors that he periodically helped
arrange for a prostitute for the then-congressman."

But investigators are digging for more: FBI agents "have fanned out across
Washington, interviewing women from escort services, potential witnesses
and others who may have been involved in the arrangement," attempting to
determine "whether any other members of Congress, or their staffs, may
also have used the same free services." Last week, a reporter for the San
Diego Union-Tribune said that "as many as a half dozen other Congressmen"
may ultimately be implicated in the scandal. (Several have already denied
ever attending Wilkes' parties.) Also, investigators are reportedly
"trying to determine whether Cunningham and other legislators brought
prostitutes to the hotels or prostitutes were provided for them there";
there is speculation that Wilkes may be subject to felony federal
sex-trafficking charges if the Virginia-based limousine service he used
transported the prostitutes into Washington.

CIA's third in command admits he attended parties

The highest-ranking CIA official to admit he attended the poker parties
thrown by Wilkes is Executive Director Kyle "Dusty" Foggo, the agency's
third-ranking official. (Foggo even "occasionally hosted the poker parties
at his house in northern Virginia," though he denies ever seeing
prostitutes at the gatherings.) Foggo's relationship with Wilkes goes back
30-plus years; the two were roommates in college, best men at each others'
weddings, and even "named their sons after each other."

By the 1980s, Foggo had joined the CIA and "was sent to Honduras to assist
the Nicaraguan Contra rebels," where his "position was essentially a
contracting officer -- he could get anyone anything they needed."
Meanwhile, Wilkes had established himself in Washington and made his
living "ferrying congressmen to Central America, where he would introduce
them to Foggo and the Contras." Foggo's connections to Wilkes and fellow
contractor Mitchell Wade are now the focus of an investigation into CIA
contracts by the agency's inspector general, first made public in March.
One of Wilkes' companies, Archer Logistics, won a contract to provide
supplies to CIA agents in Afghanistan and Iraq despite having "no previous
experience with such work, having been founded a few months before the
contract was granted."

CIA director Goss tied to scandal?

Last week, Harper's magazine reported that party-goers "under intense
scrutiny by the FBI are current and former lawmakers on Defense and
Intelligence committees -- including one person who now holds a powerful
intelligence post." CIA Director Porter Goss is perhaps the only
individual who fits such a description. ("This is horribly irresponsible.
He hasn't even been to the Watergate in decades," a CIA spokeswoman said.
When asked if Goss had attended Wilkes' parties at the Westin or other
locations, she repeated the denial. "It's horribly irresponsible. Flatly
untrue.") But the alleged links between Goss, Foggo, and Wilkes have led
some to return to questions raised when Goss initially selected Foggo to
be executive director in November 2004.

At the time, the decision was viewed with skepticism since Foggo's
previous position was as a "midlevel procurement supervisor," and because
following his unexpected selection, "Porter Goss lieutenant Patrick Murray
went to then-Associate Deputy Director of Operations for
Counterintelligence Mary Margaret Graham and informed her that if anything
leaked about other Goss appointments -- in particular, Foggo's -- she
would be held responsible." Project on Government Oversight fellow Jason
Vest reported last week that much of Foggo's counterintelligence file "has
to do with various social encounters over the years, none of which he's
been deceptive about when polygraphed, and all of which have been deemed
to be of no threat to operational security -- but are still the types of
things that could be embarrassing for Goss and the Agency." Vest suggests
the latest reports raise important questions about the "relationship
between Foggo and Wilkes, and the relationship of each with Goss."

Even the limo service is corrupt

Another piece of the puzzle is Shirlington Limousine and Transportation
Inc., the firm that Wilkes used to "transport congressmen, CIA officials,
and perhaps prostitutes to his Washington parties." Shirlington's
president, Christopher Baker, has a "lengthy history of illegal activity,"
detailed in his 62-page rap-sheet which "runs from at least 1979 through
1989 and lists charges of petty larceny, robbery, receiving stolen goods,
assault, and more." Shirlington Limo also "operates in what looks to be a
deliberately murky way. The limo company does business under at least four
different names; in addition, the office addresses listed on its business
filings regularly change. A number of those office addresses are actually
at residential buildings or business suites, and calls to the listed phone
numbers are taken by an answering service."

The company was sued in 2004 for failing to make payments on buses it had
purchased, has received eviction notices from its offices, and even had
its federal license revoked by the Federal Motor Carrier Safety
Administration in both 2001 and 2004. Despite all of this, the Department
of Homeland Security last fall awarded Shirlington a $21 million contract
"to provide transportation, including limo service for senior officials."
Shirlington also won contracts "with the Department of Housing and Urban
Development (for $519,823) and...the Federal Highway Administration (for
$142,000)." What role did Wilkes play in Shirlington receiving these
federal contracts?

The Defense Appropriations Committee 'Cabal'

A common thread links the members of Congress that Wilkes courted most
aggressively, such as Cunningham and Reps. Jerry Lewis (R-CA), Duncan
Hunter (R-CA), and John Doolittle (R-CA). All were (or still are) on
subcommittees overseeing defense and intelligence spending. On Monday,
prominent conservative strategist Ed Rollins described the main players in
the scandal as a "real little cabal on the defense appropriations
committee." In particular, the House Appropriations subcommittee on
defense is "aggressively courted not just by defense contractors, but by
lobbyists for foreign governments interested in swinging US defense
spending in certain directions," investigative journalist Laura Rozen
notes. "It is really where the checks are signed, and decisions about
funding sometimes wholly un-debated aspects of U.S. national security
policy are made."

Indeed, many of the figures tied to the scandal have histories of
involvement in reactionary conservative elements of U.S. foreign policy:
Kyle Foggo worked extensively with the Nicaraguan contras, Mitchell Wade
headed a White House-contracted group called the "Iranian Democratization
Foundation", and Wilkes was reportedly set to receive a contract to
"create and run a secret plane network" for the CIA before his links to
Cunningham were made public. The roots of this scandal may be as much in
profiteering as they are in "this club's conviction that the law is an
impediment to the national security cause, that the way to run things is
through these informal networks."

(see http://www.alternet.org/story/35841/ for links to more information
about much of the material covered in this article)

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