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Feds Search Home, Office of CIA Official (AP)

14.05.2006 05:45 Category one - Source: Yahoo politics

WASHINGTON - A growing contracting scandal took a dramatic turn at the CIA with raids on the office and home of the agency's departing No. 3 official.

The investigation of Kyle "Dusty" Foggo arose from the bribery case against Rep. Randy "Duke" Cunningham, who is serving a prison term of more than eight years after taking $2.4 million from government contractors.

Investigators from five federal agencies acted under search warrants at Foggo's home in Vienna, Va., and his office at the CIA's Langley, Va., campus.

Federal authorities are investigating whether Foggo 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 the Cunningham bribery scheme but Wilkes has not been charged and his lawyer says 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.

The agencies taking part in Friday's searches were: 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, FBI spokeswoman Debra Weierman said.

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 said in a statement last week.

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.

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, an 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.

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Associated Press writer Katherine Shrader contributed to this report.

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