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Thursday, Feb. 15, 2007

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SAN DIEGO -- As the CIA's executive director, Kyle "Dusty" Foggo had access to the spy agency's most sensitive secrets.

On Wednesday, Foggo, now retired, pleaded not guilty to federal charges that he used that information to direct classified supply deals to his best friend, San Diego defense contractor Brent Wilkes. According to a federal indictment, Wilkes reciprocated by paying for their lavish vacations and promised Foggo a job.

Both men surrendered Wednesday at FBI offices in San Diego after a 20-month investigation that has already sent former U.S. Rep. Randy "Duke" Cunningham to prison.

"Not guilty, your honor," each told U.S. District Judge Larry Burns in loud, clear voices.

Foggo, who wore an American flag pin on his lapel, was released on $200,000 bail; Wilkes was released on $2 million bail.

The 11-count indictment returned Tuesday charges the lifelong friends, both 52, with fraud, conspiracy and money laundering, crimes punishable by up to 20 years in prison.

In a separate indictment, Wilkes was charged with 25 counts of conspiracy, bribery, money laundering and unlawful monetary transactions of more than $700,000.

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Cunningham pleaded guilty in November 2005 to taking more than $2.4 million in bribes from defense contractors and was sentenced to more than eight years in prison. Wilkes faces up to 20 years in prison if convicted of those charges.

Mark Geragos, Wilkes' attorney, said he looked forward to defending his client.

"After 18 months of what has been, for lack of a better word, an unrelenting campaign of leaks, innuendo and unfounded rumors, we welcome the opportunity to be in the courtroom," Geragos told reporters.

In a statement later, Wilkes said he was innocent and called the investigation "tawdry" and "sordid."

"I guarantee you, I will be vindicated," Wilkes wrote.

He said Foggo was as close to him as a brother and defended his innocence against allegations "as cowardly as they are false."

Foggo and his attorney did not comment to reporters as they left the courthouse. Foggo is the highest-ranking CIA officer to be charged with crimes allegedly committed while working for the agency.

Wilkes, whose firms got $100 million in government contracts, showered Foggo with expensive dinners, fancy cigar humidors and extravagant trips to Scotland and Hawaii, prosecutors say. When Wilkes built a new headquarters, he reserved an office for Foggo, and introduced him to employees as a future executive of Wilkes Corp.

In return, Foggo was "corruptly influenced in his performance of his official duties," the indictment says, steering classified government contracts worth more than $1.7 million to Wilkes' companies while concealing the depth of their friendship.

© 2007 Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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