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Texas Oil Tycoon: Latest Casualty in Oil-for-Food Scandal

October 01, 2007 2:44 PM

Texasoiltycoo_mn A Texas oilman pleaded guilty in the middle of his trial today to funneling more than $7.4 million to the former Iraqi regime as part of the United Nations' oil-for-food program.

Oscar Wyatt, Jr., 83, pleaded guilty to one count of conspiracy to commit wire fraud for paying "illegal kickbacks" to the Saddam Hussein regime in exchange for Iraqi oil. His guilty plea came on the night before the government rested its case against him.

"When Oscar Wyatt agreed to defraud the Oil-for-Food program by making illegal payments to the Hussein regime, he traded the humanitarian needs of the Iraqi people for the satisfaction of his own greed and the greed of the former government of Iraq," U.S. attorney Michael Garcia said today.

Click Here for Full Blotter Coverage.

The oil-for-food program was set up by the United Nations in the mid-1990s to spare the Iraqi people from the international sanctions imposed on the Hussein regime.

In 2000, the Iraqi government discovered how to circumvent the U.N. and began selling oil in exchange for illegal payments to its officials, including Saddam Hussein.

In his case, Wyatt funneled more than $7.4 million in kickbacks through two front companies in Cyprus to the Hussein regime.

The U.S. government called a cooperating witness and former officials at Iraq's State Oil Marketing Organization (SOMO) to testify against the Texas oilman. Its case also included phone calls, in which Wyatt could be heard demanding reimbursement from a U.S. oil company for a kickback he had "already paid to the bastards" because that money "came out of [his] hip pocket."

Wyatt is scheduled to be sentenced on Nov. 27. According to his plea deal, he must forfeit more than $11 million before sentencing and must report to prison no later than Jan. 2, 2008.

Last February, Tongsun Park, who was the first person convicted of defrauding the oil-for-food program, was sentenced to five years in prison.

A U.N. investigation found the program's former head, Benon Sevan, to have engaged in suspect and lucrative oil deals with Iraq. Sevan denied any wrongdoing in a 2003 interview with ABC News' Brian Ross and has since not been charged.

Do you have a tip for Brian Ross and the Investigative Team?

October 1, 2007 | Permalink | User Comments (27)

User Comments

Former republican President Dwight D Eisenhour, warned the USA about Texas oilmen and a few other millionaires around the country, and how they would bury the USA, and how they were all stupid. He also warned against the military industrial complex and their infinite war now in effect. Nobody in Texas heard him for sure, so does anybody want to hear my warning? No, Ok go back to drooling on greasy fries and doughnuts and tell your children to shut up, I guess is my advice to you now. Beats harping on the consequences, don't it? Eventually, childrens do learn...

Posted by: daddy | Oct 1, 2007 3:06:50 PM

So when do they arrest the Bush family?

Posted by: todd | Oct 1, 2007 3:24:14 PM

What about the prescriptions for profit scandal??? When will we get ticked off about that?

Posted by: Jennifer | Oct 1, 2007 3:33:37 PM

good... hope he rots in prison,
fat, bloated, greedy discrace of a human.

Posted by: Tommy Darcy | Oct 1, 2007 3:59:40 PM

He got Busted for Not being a Bushie. Dick Cheney as CEO of Halliburton also sold oil field equipment to IRAN/IRAQ during Clinton's presidency when sanctions were in place against those 2 nations. Same with ABB, where Rumsfeld was on the board. They didn't get busted because they are part of Bush's inner circle.

Posted by: art funk | Oct 1, 2007 4:08:48 PM

I don't care if he is an old man. Throw his greedy a** in prison.

Posted by: John Dempsey, Mishawaka, IN | Oct 1, 2007 4:26:26 PM

Why is he a casaulty? This is a shame. He's not a victim. He cheated, and he got caught. At least he saw that there was no way out of this honorably except to plead guilty.

Posted by: Getalife | Oct 1, 2007 5:11:42 PM

Isn't this really TREASON, I think all the children of Iraq should have a lawsuit against the old gesier. How many of them starved to death because of his GREED. When someone is that rich, its not about money its about POWER. It should be a life sentence for all the pain and suffering he caused sleeping with the enemy.

Posted by: Carol | Oct 1, 2007 6:42:09 PM

He was probably staunchely against the war in Iraq too...for the same reasons the UN, France, Germany, and all other Oil-for-Food beneficiaries were. When will people realize that toppling Saddam's regime was more ideological (by Neoconservatives), intending to flex US power and advance democracy...rather than business motivated.

The US oil industry had the most to lose.

Posted by: Chris S | Oct 1, 2007 6:43:35 PM

You hear that Bush, we're comin after y'all out-laws. Yea-Haw!! Yea-Haw!!!

Posted by: Kilroy was here | Oct 1, 2007 7:12:16 PM

I think that paying $11 million should be punishable enough for Mr. Oscar Wyatt I feel he's in his late 80's and more likely he has children and grandchildren that would hate to see hi m behind bars! I also feel that he knows that he did wrong and he probably new it was all going to catch up with him one day. I think if any hard time is going to come out of this that the judge should have him on "HOUSE ARREST" where he will not be able to go anywhere but also be able to spend birthdays, holidays, etc. with his children & grandchildren. I think Mr. Oscar Wyatt should be put on a "TETHER".

Posted by: Kim Monterosso | Oct 1, 2007 8:11:48 PM

7 millions is nothing but pennies for these crooks.This is just a little fish, Cofey Annan's nefew and many at the UN made a lot of profit, but I know they will go on unscratch.

Posted by: b2h7 | Oct 2, 2007 12:43:53 AM

The oil-for-food program was set up by the United Nations in the mid-1990s to spare the Iraqi people from the international sanctions imposed on the Hussein regime.

This is Dominio theory guilt pointing. If the USA did not put sanctions on Saddam there would have been no Oil for Food Program. There would have been no hidden deals going on.

America armed Saddam to fight Iran, supported him with weapons, but gave him nothing for the loss of life to his people and soldiers. He decided it was not worth continuing so reclaimed Iraq territory Kuwait. This led to the 1st Iraq War.

Many Kurds were being supported by the Iranians, and became a target to Saddam. Now we have America overthrow Saddam hanged him, and killed thousands of innocent women and children, and grandparents, while Iranians are now supporting Iraq against the American invasion.

This whole mess was caused by the United States, and they have the gall to convict this Texas Oil man. This is ignorance at its highest level.

Posted by: Dominic Jermano | Oct 2, 2007 1:11:51 AM

um....the whole point of punishment is that you loose those things that we consider the joys of life! That includes grandchildren! A crime is a crime and just because there aren't pictures showing the exact effects of his actions doesn't mean they didn't cause ripples and ripples of horror for the helpless poor.

I don't care how old he is, what happened to all the wisdom he was suppose to have gained?! When your country has put into place policies with other countries around the world and you do something to directly undermine them, you go to JAIL!

Posted by: Sarah | Oct 2, 2007 1:24:46 AM

I know Mr. Oscar Wyatt was wrong at what he was doing over and with Iraq's President Saddam Hussain but I feel that if Mr. Oscar Wyatt is going to be put behind bars then so should the employees that worked for him that flew over to Ruba and other countries checking all the oil companies for Mr. Oscar Wyatt and reporting (calling Mr. Wyatt on the phone) the information on the oil companies and how they were doing so far! If they can't put those employees behind bars with Mr. Wyatt then I feel Mr. Wyatt should be able to pay back the $11 million or more in fees and put on "HOUSE ARREST" and on a "TETHER" for a VERY VERY VERY long time!!!! In reguards I don't think anyone of you see with your own eyes in what Mr. Wyatt did for those hostages that got out by his help and spending his own money out of his own pocket to fly them and their families to our wonderful state (United States Of America). Their was one gentleman that I know was VERY VERY VERY appreciative towards Mr. Wyatt for flying him and his family to the United States Of America and his first name was Alfred (not sure what his last name was).

Posted by: Kim Monterosso | Oct 2, 2007 10:45:08 AM

who wants to bet Bush and co. are pals with this weasel? If the media would dig around they could probably find a link.

Posted by: Carl | Oct 2, 2007 10:48:45 AM

Wasn't he a big supporter of Bush and Cheney?

Posted by: bobby stickers | Oct 2, 2007 11:34:48 AM

Saddle up PILGRIM, it is time we took these crooked texas scat slingers down once and for all time. JW

Posted by: daddy | Oct 2, 2007 12:57:49 PM

He deserves no mercy because of his age. His actions are treasonous to me and he should face a firing squad.
If Bush truly thinks Iraq was a terrorist regime he should label that old man an enemy combatant and throw him in with the guys in Guatanemo.

Posted by: Mike | Oct 2, 2007 3:29:51 PM

Rich Oil Tycoon..doesn't this beat all..and so many families without a real source of income to put their families in a better position...wake up America..take a real good look at the millionaires who have far outfitted your own pocketbooks and are probably more intelligent to protect this country than this all american rich celestial being of a rich powerful influential dilemna of a male today..take a look at what has manifested in the USA! Apachecheynne

Posted by: Apachecheynne | Oct 2, 2007 7:36:06 PM

Fact is, Oscar Wyatt was and is a life long Democrat. He hated Bush 1 and Bush 2 as well. As for the oil for food deal, it was strictly business to him. He calcualted the risk, missed the mark, and now hs to pay for his miscalculation. Very simple really.

Posted by: john | Oct 3, 2007 11:29:46 AM

Where's an Anna Nicole Smith when ya need one?? I'm sure she could funnel that money to a better cause.

Posted by: chris | Oct 3, 2007 1:48:59 PM

Daddy,

You say: So when do they arrest the Bush family?

Without incorporating the normal magna carta of disassociated peripheral issues, please explain specifically on this statement regarding this ingrate Wyatt and how there is a whiff of an association to Bush.

With no generalities, can you umbilical Bush directly to Wyatt?

Whiffer

Posted by: W. A. Whiffer | Oct 6, 2007 2:44:19 PM

I think that Wyatt is connected to Democrats - perhaps to the Republicans as well. And this article rather prooves it. Everytime and anytime there are even a hint of a connection to the Bush admin. the news - bad news - always plays it up, however, when it's to the Democrats - the news is generally silent. They just don't go there.

Posted by: gh | Oct 9, 2007 11:23:33 AM

I once saw the movie The Fixer, with Jon Voight (?). It was filmed in Chicago and he was in a highrise building overlooking Union train station. He was standing at the window and he was so high up that the people below going and coming from the train station during rush hour looked like ants. And he said, Look at them, they're nothing but pawns.

Posted by: lettie | Oct 12, 2007 12:55:45 AM

Lynn Wyatt, we love you! Nobody will forget what you have done for Houston and for Texas.

Posted by: Jon | Oct 12, 2007 8:04:43 PM

Wyatt is actually a Bush outsider and as such was targeted but in fact he shares much in common with Cheney/Haliburton and Bush/Oil interests - - using political connections to gouge for profits in any way possible. This time Wyatt just came up on the short end of the leash. Bush and Cheney will have to wait their turn until the Justice Dept gets back on their feet, probably after the Bush Admin slithers out of Washington.

Posted by: Jim | Oct 17, 2007 7:26:47 PM

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