Law Enforcement Officers Search House of Outgoing CIA Executive Director

WASHINGTON – Federal officers on Friday raided the home and offices of the No. 3 man at the CIA, who is embroiled in a widening corruption probe linked to an indicted congressman and wild parties at Washington's infamous Watergate Hotel.

Outgoing CIA Executive Director Kyle Dustin "Dusty" Foggo is the focus of at least four investigations, one by the CIA inspector general, and the second by the FBI, which is looking into whether he had taken money or favors in order to put together defense contracts, including one involving a friend of his, Brent Wilkes.

Foggo is also the subject of investigations by the Internal Revenue Service and the Defense Department's investigative arm, the Defense Criminal Investigative Service.

One FBI agent told reporters from Copley News Service, who were at Foggo's residence, that Foggo was not at home in his quiet suburban neighborhood near CIA headquarters and had not been detained. The agents refused to answer other questions about the raid.

A neighbor told Copley that the agents arrived about 8 a.m. EDT. A white Chevrolet van was backed up to the carport of the split-level brick home and, at one point, a man wearing latex gloves emerged from the house and went around back.

Wilkes is already involved in another criminal case, where he is listed as a co-conspirator in the conduct that led to the conviction of former Rep. Randy "Duke" Cunningham, R-Calif. Cunningham, who resigned in November after he entered a guilty plea in that case, was sentenced to serve more than eight years in federal prison for taking $2.4 million worth of bribes in return for political favors.

Wilkes' and Foggo's names also come together in allegations of poker parties for defense contractors at the Watergate Hotel. Wilkes allegedly orchestrated the parties and even shuttled in prostitutes. FBI agents also have been investigating whether Wilkes provided Cunningham with the prostitutes, limousines and hotel suites.

The CIA has acknowledged that Foggo has attended parties in area hotel rooms, but claims nothing that scandalous happened 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 statement said.

But a House panel may think otherwise; lawmakers this week opened an investigation into a limousine company connected to the parties.

CIA spokeswoman Jennifer Millerwise Dyck also confirmed the searches of Foggo's home and office.

"The agency is cooperating fully with the Department of Justice and the FBI," she said in a statement. "Agency leaders outside of the (inspector general's office) were informed just prior to the execution of the search warrants, in keeping with standard law enforcement procedures."

Foggo agreed to step down as the CIA's executive officer under pressure because federal authorities are investigating whether he 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.

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.

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, the unnamed intelligence official said.

Foggo this week announced his retirement from the agency after more than 25 years serving around the world. As executive director, Foggo had the powerful position of overseeing the day-to-day operations of the CIA. His decision came three days after CIA Director Porter Goss also announced he would be stepping down from the agency.

Dyck said the Foggo investigation has "absolutely nothing, zero" to do with Goss' resignation.

A U.S. official also tells FOX News that there is no connection between Goss' sudden departure one week ago and the investigation into Foggo. The two men were "not friends," the 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 classified facility that supports the War on Terror.

FOX News' Catherine Herridge and The Associated Press contributed to this report.