Foggo-Wilkes Probe Widens

May 18, 2006

From ABC News:

Sources close to the widening probe of official corruption in Washington tell ABC News that investigators are studying travel records of expensive trips to Hawaii and Europe taken by top CIA official Dusty Foggo and San Diego defense contractor Brent Wilkes.

Prosecutors want to know who paid for the lavish trips to European castles and top end Hawaiian resorts, including this $7,000 a night Honolulu beachfront mansion, owned at one time by hair stylist super-star Paul Mitchell.

Wilkes, a close personal friend of Foggo is suspected of paying bribes to Congressman Duke Cunningham, who recently pled guilty in the corruption investigation.

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Another GOP Congressman Under Investigation

May 11, 2006

From The LA Times:

Federal prosecutors have begun an investigation into Rep. Jerry Lewis, the Californian who chairs the powerful House Appropriations Committee, government officials and others said, signaling the spread of a San Diego corruption probe.

The U.S. attorney's office in Los Angeles has issued subpoenas in an investigation into the relationship between Lewis (R-Redlands) and a Washington lobbyist linked to disgraced former Rep. Randy "Duke" Cunningham (R-Rancho Santa Fe), three people familiar with the investigation said.

The investigation is part of an expanding federal probe stemming from Cunningham's conviction for accepting $2.4 million in bribes and favors from defense contractors, according to the three sources.

It is not clear where the investigation is headed or what evidence the government has. But the probe suggests that investigators are looking past Cunningham to other legislators and, perhaps, the "earmarking" system that members of Congress use to allocate funds.

Lewis said Wednesday that he was not aware of any investigation, had not been contacted by any investigator and did not know why he would be investigated.

"For goodness sake, why would they be doing that?" Lewis asked.

The government is looking into the connection between Lewis and his longtime friend Bill Lowery, the sources said. Lowery, a lobbyist, is a former congressman from San Diego.

As chairman of the Appropriations panel, Lewis has earmarked hundreds of millions of dollars in federal contracts for many of Lowery's clients, one of the sources said.

Lewis said he knew Lowery well, having spent 12 years in Congress with him, but denied favoring earmarks for Lowery's clients.

"Absolutely not," Lewis said. He said all the earmarks he authorized benefited "my constituents and my people." He said he was particularly proud of helping fund programs such as the cancer treatment center at Loma Linda University, a client of Lowery's. "That would never have been accomplished without an earmark," he said.

The Lewis investigation is in the early stages and has not been presented to a grand jury, the sources said. They spoke on condition of anonymity because they were either involved in the probe or were not authorized to speak about ongoing investigations.

Thom Mrozek, spokesman for the office of U.S. Atty. Debra Wong Yang, said that as a matter of policy he could not confirm or deny any investigation it might be conducting.

The probe focuses on what one source said was an unusually close relationship between Lewis and Lowery, who served on the House Appropriations Committee together from 1985 to 1993.

Shortly after leaving Congress, Lowery founded Copeland Lowery Jacquez Denton & White, a Washington lobbying firm whose clients include Brent R. Wilkes, a defense contractor who is the focus of a separate probe in San Diego.

Wilkes has been identified by his lawyer as the unindicted "co-conspirator No. 1" in the Cunningham corruption case.

In that case, Cunningham was sentenced to eight years and four months in prison for accepting $2.4 million in bribes and favors from "co-conspirator No. 1" and his business associate, Mitchell Wade, who pleaded guilty to bribing Cunningham. Cunningham and Wade are cooperating with federal investigators.

Wilkes and his companies have given Lewis at least $60,000 in campaign contributions over the years, making them among the lawmaker's largest contributors.

At the same time, Wilkes has paid Lowery's firm more than $160,000 in lobbying fees.

According to Taxpayers for Common Sense, a nonpartisan research organization, Lewis has earmarked at least $70 million in federal funds for a mapping software company in Redlands. The company, Environmental Systems Research Institute Inc., is one of Lowery's largest clients and has paid more than $320,000 in lobbying fees, according to the nonpartisan Center for Public Integrity.

Investigators are said to be particularly interested in the intermingling of Lewis' and Lowery's staffs and whether it led to favorable treatment for Lowery's clients in securing government contracts.


CIA #3, Under Investigation, Quits Agency

May 9, 2006

First Porter Goss, now Kyle Foggo.  It makes me wonder how senior members of the Bush administration are not considering jumping out of windows.  Damage control mode must be in overdrive in the west wing.

–DS

From MSNBC:

…Earlier today, the agency circulated an internal announcement that agency’s third ranking official, Kyle (Dusty) Foggo, has decided to step aside. News of Foggo’s departure inevitably will be overshadowed by the Hayden nomination, but its effects will continue to resonate within the agency. As NEWSWEEK first reported, the CIA’s inspector general has been investigating whether Foggo helped steer agency contracts to companies run by Brent Wilkes, a defense contractor who was identified as an unindicted co-conspirator when former San Diego congressman and ex-Navy air ace Randy (Duke) Cunningham pleaded guilty in a Congressional bribery scandal. The CIA has acknowledged that its internal watchdog is investigating whether Foggo helped steer any contracts to Wilkes, an old friend. The inspector general was looking into at least one specific contract, worth between $2 million and $3 million, which a CIA base in Germany granted to a company run by a relative of Wilkes. At the time the contract was issued, Foggo headed the CIA base’s logistics office, though he did not sign the contract.