Sources: Ex-CIA No. 3 to be indicted in corruption inquiry
• Former No. 3 official at CIA resigned last year amid the inquiry
• Sources: "Dusty" Foggo will be indicted in inquiry over Pentagon contract deals
• Investigators looked at his relationship with defense contractor Brent Wilkes
• Wilkes linked to bribery scandal involving ex-Rep. Randy "Duke" Cunningham
From Kelli Arena and Terry Frieden
CNN Washington Bureau
WASHINGTON (CNN) -- The former third-ranking official at the CIA, Kyle "Dusty" Foggo, is expected to be indicted Tuesday in California in an investigation into public corruption and defense contracts, according to two sources familiar with the case.
Federal prosecutors in San Diego plan to announce that Foggo will be indicted in connection with an inquiry into the awarding of secret Pentagon contracts, the sources said.
Defense contractor Brent Wilkes, who has been a focus of the investigation by the U.S. attorney's office in San Diego, also is expected to be indicted, according to sources who asked not to be identified because of grand jurysecrecy rules.
A federal grand jury was meeting Tuesday in San Diego to consider indictments, The Associated Press reported.
The Justice Department refused any comment.
Former Rep. Randy "Duke" Cunningham, R-California, pleaded guilty to bribery, fraud and tax evasion charges in the case. He resigned from Congress in 2005 after entering the plea. He is serving an eight-year prison sentence.
Foggo was plucked from relative obscurity by then-CIA Director Porter Goss to become the CIA's executive director, the agency's No. 3 position. As such, Foggo was in charge of day-to-day operations at the spy agency.
Goss is not accused in the case, officials said.
Foggo resigned from the CIA last year amid the inquiry into his relationship with Wilkes, who was linked to the Cunningham bribery case. The two men reportedly have been friends since childhood.
Legal filings in the Cunningham case allege that an unindicted co-conspirator gave Cunningham $525,000 in bribes in return for $6 million in government contracts. Officials have identified the unindicted co-conspirator as Wilkes.
According to a CNN report in May 2006, the CIA's inspector general was looking at a contract Wilkes had with the CIA, awarded by Foggo, to see if there was anything improper in the deal.
The contract, valued at $2.4 million, was for providing water and household items to CIA agents operating in war zones such as Afghanistan and Iraq.
In addition, federal law enforcement sources told CNN for the 2006 report that the investigation continues into "outstanding issues" in the Cunningham bribery case, and that Foggo is part of those issues.
FBI agents searched Foggo's Virginia home and his CIA office in Langley, Virginia, last May.
After reports surfaced alleging Wilkes provided Cunningham with limousines and prostitutes at two Washington hotels, Foggo said he had attended poker parties thrown by Wilkes there.
In a statement issued by the CIA at the time, Foggo said he never saw anything "untoward" at the games, and he said any allegation to the contrary would be "false, outrageous and irresponsible."
"If he attended occasional card games with friends over the years, Mr. Foggo insists they were that and nothing more," a spokeswoman said.
Mark Geragos, an attorney for Wilkes, did not respond to messages seeking comment Tuesday, according to the AP.
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