By MARK SHERMAN, Associated Press Writer Fri May 12, 6:54 PM ET
WASHINGTON - Federal agents searched the home and office of theCIA'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 theDepartment of Justice and the FBI," she said.
The agencies taking part in the searches are: the FBI, theInternal 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.
5.13.2006
Home of outgoing CIA official searched
Law enforcement officials executed search warrants Friday on the house and
office of the CIA%u2019s outgoing executive director, the FBI said.
http://www.msnbc.msn.com/id/12757804/from/ET/
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Brian
5.13.2006
Brian
There is an article on www.msnbc.com about Kyle Foggo, third ranked official of the CIA is under investigation. By the FBI, IRS, & Defense Criminal Investigative Service. His home in Virginia is being searched.
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Susie Quinn
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Brian
5.13.2006
Source: FBI searches home of ex-CIA official
From Kevin Bohn
CNN Washington Bureau
WASHINGTON (CNN) -- The FBI searched the home and office of former CIA Executive Director Kyle "Dusty" Foggo on Friday, a law enforcement official told CNN.
Foggo, who was the spy agency's third-ranking official, is part of a broad law enforcement investigation into allegations of corruption, according to officials familiar with the probe.
Search warrants were executed Friday at his CIA office and home in northern Virginia.
"As part of an ongoing joint investigation by the CIA's Office of Inspector General and law enforcement agencies into allegations of misconduct by the former Executive Director Dusty Foggo, the FBI and CIA's Office of Inspector General this morning executed search warrants for his agency workplace and residence," said CIA spokeswoman Jennifer Millerwise Dyck.
"The agency is cooperating fully with the Department of Justice and the FBI."
Foggo, who resigned this week from his job overseeing day-to-day CIA operations, is under investigation by the FBI and the CIA's inspector general over his ties to a defense contractor linked to the bribery case against former U.S. Rep. Randy "Duke" Cunningham, R-California.
Cunningham pleaded guilty in November to accepting $2.4 million in bribes. He is serving an eight-year prison sentence.
Intelligence sources said Monday that Foggo had decided to step down after the resignation last week of his longtime friend, CIA Director Porter Goss.
Goss announced he was leaving after what intelligence sources described as a power struggle with National Intelligence Director John Negroponte.
Intelligence officials said Foggo's departure would be "pretty standard" because the executive director "tends to follow the CIA director's career trajectory."
Negroponte's chief deputy, Air Force Gen. Michael Hayden, is President Bush's nominee to replace Goss. (Full story)
The investigations stem from Foggo's relationship with defense contractor Brent Wilkes. The two men have reportedly been friends since childhood.
Legal filings in the Cunningham case allege that an unindicted co-conspirator gave the congressman $525,000 in bribes in return for $6 million in government contracts. Officials have identified the unindicted co-conspirator as Wilkes.
The CIA's inspector general is looking at a contract Wilkes had with the CIA, awarded by Foggo, to see if there was anything improper in the deal.
The contract, valued at $2.4 million, was for providing water and household items to CIA agents operating in war zones such as Afghanistan and Iraq.
In addition, federal law enforcement sources said the probe continues into "outstanding issues" in the Cunningham bribery case and that Foggo is part of those issues.
After reports surfaced last week alleging Wilkes provided Cunningham with limousines and prostitutes at two Washington hotels, Foggo said he had attended poker parties thrown by Wilkes there.
In a statement issued by the CIA, Foggo said he never saw prostitutes at the games and he said any allegation to the contrary would be "false, outrageous and irresponsible."
CIA spokeswoman Jennifer Millerwise said Foggo maintains that any government contracts over which he had responsibility "were properly awarded and administered."
"If he attended occasional card games with friends over the years, Mr. Foggo insists they were that and nothing more," she said.
The FBI is investigating allegations that Wilkes contracted with a Virginia company, Shirlington Limousine and Transportation, to procure prostitutes for Cunningham and deliver them to the hotels.
Through his attorneys, Chris Baker, CEO of the company, denied wrongdoing.
Shirlington holds a $21.2 million contract to provide shuttle buses and other transportation for the Department of Homeland Security. Baker has a criminal record that includes two felony convictions and a number of misdemeanors.
The Department of Homeland Security said the contract was properly awarded under a Small Business Administration program and that the criminal background of the company's CEO was not an issue.
While department does background checks on drivers, it does not have the resources to investigate company officials, spokesman Larry Orluskie said.
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Brian
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