Former CIA executive pleads guilty to defrauding government

Prosecutors said Kyle Dustin Foggo, along with convicted Congressman Randy 'Duke' Cunningham, helped steer an estimated $100 million in contracts to San Diego-area firms run by Foggo's old roommate.

By Tony Perry
Los Angeles Times Staff Writer

12:16 PM PDT, September 29, 2008

SAN DIEGO — A former top CIA official pleaded guilty today to one count of defrauding the U.S. government for using his influence to steer intelligence contracts to a friend and former college roommate.

Kyle Dustin "Dusty" Foggo, 53, who once held the third-highest position in the CIA, entered his plea in a Virginia federal courtroom, related to his dealings with defense contractor Brent Wilkes. He was accused of helping steer agency contracts to companies run by Wilkes in the San Diego area.

Foggo resigned in 2006 as executive director of the intelligence agency, and was charged in February 2007 with fraud and other offenses in the bribery case of convicted U.S. Congressman Randy "Duke" Cunningham, a Republican from Rancho Santa Fe. Prosecutors said Foggo and Cunningham helped steer an estimated $100 million in contracts to Wilkes' firms.

Cunningham is serving eight years in prison after pleading guilty to taking $2.4 million in bribes from defense contractors and evading more than $1 million in taxes.

Foggo was then indicted in May 2007 on charges involving Wilkes, who is serving 12 years in prison for bribing Cunningham. Foggo faces a maximum of 20 years in federal prison and a $250,000 fine when he is sentenced in January, but prosecutors promise to pursue no more than 37 months in prison.

"Foggo admitted he allowed Wilkes to conceal their close relationship by adopting false cover stories to hide their relationship and using straw men and shell companies," said U.S. Atty. Karen Hewitt, based in San Diego.

The case was prosecuted in the Virginia federal court by Assistant U.S. Attys. Valerie Chu, Jason Forge and Phillip L.B. Hapern, all based in the San Diego office.

Foggo and Wilkes are longtime friends. They attended school together in Chula Vista and roomed together at San Diego State University. Prosecutors say Foggo had been promised a lucrative job by Wilkes once he retired from the CIA.