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Former CIA executive pleads guilty to defrauding government
Key Excerpts from Article on Website of Los Angeles Times


Los Angeles Times, September 30, 2008
Posted: October 3rd, 2008
http://www.latimes.com/news/la-na-foggo30-2008sep30,0,568184...

The former No. 3 official at the CIA pleaded guilty Monday to defrauding the government, closing an investigation that linked the nation's preeminent spy service to the corruption scandal involving former Rep. Randy "Duke" Cunningham. In admitting that he abused his rank to steer lucrative contracts to cronies, Kyle Dustin "Dusty" Foggo, the agency's onetime executive director, became one of the highest-ranking officials in CIA history to be convicted of criminal charges. But the deal also involved major concessions from prosecutors, who allowed Foggo to admit guilt to a single fraud charge, wiping out 27 additional counts that included money laundering and conspiracy. Prosecutors indicated that they would recommend he serve no more than 37 months. The revelations of Foggo's crimes surfaced two years ago during one of the most tumultuous periods in recent agency history, and added to the pressure on the Bush administration to remove Porter J. Goss as CIA director in 2006. Goss selected Foggo for the agency's third-ranking position. Foggo had never served as a case officer or an analyst -- the jobs that typically garner the most respect within the CIA. But as a procurement officer at a secret CIA post in Frankfurt, Germany, he was in a position to cultivate contacts with members of Congress and other influential officials who visited during overseas trips to war zones.

Note: Interesting that a guilty plea for one count was exchanged for dismissing numerous other charges of fraud and money laundering. For an excellent analysis of the reasons behind this unusual prosecutorial strategy, click here. Buzzy Krongard, the previous #3 man at the CIA, has been linked to the millions of dollars in suspicious stock option trades made just prior to 9/11 that were never claimed, though this received little media coverage.


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