"Dedicated to exposing the lies and impeachable offenses of George W. Bush"

Feds Search Home, Office of CIA Official
May 12, 2006

WASHINGTON - Federal agents searched the home and office of the CIA's departing No. 3 official on Friday as part of a corruption investigation that has sent a former congressman to prison and now involves CIA contracts.

Investigators from five federal agencies acted under search warrants at the home of Kyle "Dusty" Foggo in Vienna, Va., and his office at the CIA's Langley, Va., campus, FBI spokeswoman Debra Weierman said. Both locations are in the Washington suburbs.

The warrants themselves were sealed and officials would not discuss what agents were seeking.

Foggo agreed to step down as the CIA's executive officer under pressure because federal authorities are investigating whether he improperly awarded contracts to San Diego businessman and friend Brent Wilkes, according to federal law enforcement and intelligence officials. They spoke on condition of anonymity because investigations were ongoing.

Prosecutors have implicated Wilkes in a scheme to bribe former Rep. Randy "Duke" Cunningham, R-Calif., but he has not been charged and his lawyer has said Wilkes did nothing wrong.

Among the contracts under scrutiny is one that dates from Foggo's previous job of running the logistics at a secret facility in Europe that supplies CIA personnel in war zones, the law enforcement official said. Foggo gave the multimillion-dollar contract to supply bottled water to a Wilkes-related company, the official said.

Foggo, who was in the process of clearing out his office at the end of a 25-year CIA career, has denied any wrongdoing. "Mr. Foggo maintains that government contracts for which he was responsible were properly awarded and administered," the CIA said in a statement last week.

CIA spokeswoman Jennifer Millerwise Dyck said Friday that top CIA officials were informed of the warrants shortly before the searches began. "The agency is cooperating fully with the Department of Justice and the FBI," she said.

The agencies taking part in the searches are: the FBI, the Internal Revenue Service, the Defense Criminal Investigative Service, the U.S. Attorney's office in San Diego and the CIA's inspector general, Weierman said.

The inspector general has been investigating Foggo's relationship with Wilkes for more than two months.

The inquiry stems from the investigation of Cunningham, who is serving a prison term of more than eight years after admitting last year that he took $2.4 million in bribes from government contractors. Mitchell Wade, another contractor, pleaded guilty in February to conspiring with Cunningham and is cooperating with investigators.

Wilkes is described in court papers as an unindicted coconspirator.

The investigation includes allegations, raised by Wade, that Wilkes provided Cunningham with prostitutes, limousines and hotel suites.

Foggo has acknowledged participating in poker games organized by Wilkes at the hotel rooms, but he has said nothing untoward went on while he was there. "If he attended occasional card games with friends over the years, Mr. Foggo insists they were that and nothing more," the CIA statement said.

Lawyers for Wilkes and the limousine company, Shirlington Limousine and Transportation Inc., of Arlington, Va., also have denied any involvement with prostitutes.

Foggo announced his retirement from the agency this week, three days after CIA Director Porter Goss said he would be stepping down.

Dyck said the Foggo investigation has "absolutely nothing, zero" to do with Goss' resignation.

Goss asked Foggo to step down as executive director last week because he felt the accusations had become a distraction and could damage the agency's reputation, the unnamed intelligence official said.

Foggo's associates have said he received the Intelligence Commendation Medal for supporting the war on terror in 2002. Before becoming the agency's No. 3 leader in 2004, he was the chief of base at a secret facility that supports the war on terror.

As executive director, Foggo had the powerful position of overseeing the day-to-day operations of the CIA.

One FBI agent told reporters from Copley News Service, who were at Foggo's residence, that Foggo was not at home in his quiet suburban neighborhood near CIA headquarters and had not been detained. The agents refused to answer other questions about the raid.

A neighbor told Copley that the agents arrived about 8 a.m. EDT. A white Chevrolet van was backed up to the carport of the split-level brick home and, at one point, a man wearing latex gloves emerged from the house and went around back.

Associated Press writer Katherine Shrader contributed to this report.

Original Text