Former No. 3 CIA Official Indicted by Grand Jury

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February 13, 2007 3:00 PM

The former executive director of the CIA, Kyle "Dusty" Foggo, was indicted today along with a defense contractor on charges of fraud, conspiracy and money laundering.

The charges were returned by a federal grand jury in San Diego, and prosecutors have scheduled a news conference for later this afternoon.

Foggo, who served as the CIA's executive director, was accused last year by fellow CIA employees of steering contracts for the CIA station in Iraq to longtime friend Brent Wilkes, a defense contractor whose activities also led to the indictment of former Republican Congressman Duke Cunningham.

Read the indictment against Foggo and Wilkes.

Today's indictments also included Wilkes.

At his home in suburban Washington, D.C., this morning, Foggo declined to comment to ABC News.

Wilkes' lawyer, Mark Geragos, also declined to comment. 

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Foggo was promoted from a field logistics position to the powerful No. 3 position by Porter Goss when Goss took over the CIA.  Goss resigned shortly after ABC News reported that Foggo was under criminal investigation, although officials say none of the allegations involve Goss.

At the time, officials close to Goss dismissed the investigation of Foggo "as existing only in the blogosphere" and tried to discourage ABC News from reporting the story.

CIA Director Michael V. Hayden sent the following note to CIA employees this afternoon:

"Former Executive Director K.D. "Dusty" Foggo, who left the CIA last year, has been indicted on several criminal counts related to allegedly improper conduct involving Agency contracts.

"Allegations concerning this matter first surfaced inside the CIA, and the Office of Inspector General launched an investigation.  Subsequently that investigation became linked to another investigation being supervised by the United States Attorney's Office in San Diego, CA.

"At every step of the process, CIA -- through the Offices of Inspector General and General Counsel -- has cooperated closely with other investigative agencies and the Department of Justice.  That cooperation continues today.

"Out of respect for the legal proceedings that are underway, and to ensure the protection of classified information and Agency equities, the Office of General Counsel reminds all Agency employees that they should not publicly comment on this case."

Photos See the players in the CIA corruption case.