Begin forwarded message: From: Mario Profaca <[EMAIL PROTECTED]> Date: September 30, 2008 2:41:01 PM PDT Subject: [SPY NEWS] CIA executive admits to multi-million dollar fraud Reply-To: [EMAIL PROTECTED] http://www.theherald.co.uk/news/news/display.var.2455213.0.CIA_executive_admits_to_multimillion_dollar_fraud.php CIA executive admits to multi-million dollar fraud
 CommentA former high-ranking CIA official has pleaded guilty to fraud charges after admitting that he steered tens of millions of dollars in lucrative US government contracts to his best friend. Kyle "Dusty" Foggo, 53, who was third in charge when he resigned as executive director of the CIA in 2006, in return, accepted tens of thousands of dollars in meals, trips and "sexual companionship", along with a standing offer for a high-paying job at his friend Brendan Wilkes's firm. The trips included a holiday in Scotland costing more than £35,000 which included a helicopter ride, a round of golf at a championship course and a stay at an exclusive country estate. Wilkes, the former boss of a defence contractor firm, is already serving a 12-year sentence for bribing former Republican Congressman Randall "Duke" Cunningham. The US Justice Department in Washington said Wilkes and Foggo hid their relationship from the CIA using false cover stories - "straw men" - and shell companies to conceal the manipulation of the CIA contracts. Part of the indictment against Foggo said that on or about August 3, 2003, Wilkes paid for Foggo and his family to join him for a holiday in Scotland. It included more than £7000 in private jet flights, more than £2000 for a helicopter ride to Carnoustie for a round of golf, and more than £25,000 for a stay at the Pitcastle estate in Perthshire which provides salmon fishing, archery and clay pigeon shooting. On its website, the owners of the estate in Strathtay say it offers "the discerning traveller, businessman or sporting enthusiast all that's needed to turn the average break into an experience of a lifetime". The indictment against Foggo also states that on or about September 10, 2003, he sent Wilkes an e-mail entitled "Scotland and Cigars" stating in part: "I'll work the water thing with (Foggo's water contact) - but you sending a follow-up e-mail is a good idea. I want to insure (sic) that B-connection is not forgotten ... Group W is in this deal." Foggo and Wilkes later took a £18,000 vacation to Hawaii, the indictment said. Foggo graduated from San Diego University before he began a 23-year career with the CIA. He became the agency's executive director in November 2004. He faces a maximum penalty of 20 years in prison, a £140,000 fine and three years of supervised release, following his guilty plea to one count of defrauding the United States. He is at present free on bond with sentencing scheduled for January 8. The longtime friends were originally indicted in California in February 2007. A year later federal prosecutors chose to try the case against Foggo in Virginia where they alleged that most of the crimes were committed. Wilkes was also dropped from the case at that time. In May a new indictment was filed against Foggo alleging that he pushed a proposed £56m government contract for Wilkes in return for lavish vacations, private jet flights and a lucrative job offer. The indictment alleged that Foggo provided Wilkes with "sensitive, internal information related to (US) national security," including classified information, to help him prepare proposals for providing undercover flights for the CIA under the guise of a civil aviation company. Prosecutors also alleged that Foggo pushed his CIA colleagues to hire Wilkes's companies without disclosing their friendship. It was also alleged that Foggo received bribes in the form of "sexual companionship" in exchange for helping his best friend. Foggo pled guilty to a bribery charge under this indictment. Last November, a jury convicted Wilkes of 13 counts of bribery, conspiracy, fraud and money laundering. He was sentenced to 12 years in prison in February. © All rights reserved. Reproduction in whole or in part without permission is prohibited. = |
