Tuesday, January 22, 2008
Maybe The Oscar Wyatt Case is Another Selective Prosecution?
In a surprise move, Texas wildcatter Oscar S. Wyatt arrived at a plea deal with the Department of Justice and plead guilty to one count of conspiracy to commit wire fraud on October 1.
The Houston gas and oil maverick magnate Oscar S. Wyatt was being tried for wire fraud and prohibited transactions. It is alleged that he paid kickbacks to the Iraqi government to obtain vouchers allowing him to purchase oil through the UN sanctioned "Oil for Food Program. Ben Berry, head of the FBI white-collar crime unit, said Wyatt was also guilty of "terrorist financing" because he violated a Bush order prohibiting these dealings with Iraq.
Wyatt, 83, explained his decision to accept a plea deal by saying that at his age he could "not ...waste any more time fooling with this operation." He will serve 18 to 24 months and pay a $11 million fine.
A few others have been indicted for paying kickbacks to Iraq, and there is no way of knowing if Wyatt is innocent or guilty. It seems that the US did not object to people buying oil under the Oil for Food program until 2002, when some went to Syria. It that year, Saddam started demanding kickbacks for vouchers in 2000. Some American firms refused to pay but others continued to do business with him. There is a 2004 CIA report on these operators that runs 918 pages, but the names of firms and individuals were redacted. It is estimated that Saddam may have garnered $10 in illegal profits and that Wyatt may have ponied up a little less than $4 million for $23 million in profits over 7 years.
Few Americans were indicted; although, various sources identified many persons and American firms being involved. Neo-Cons, anxious to discredit the UN, obtained a report by Paul Volcker that showed that many corporate interests were involved. Chevron, which had named a tanker for former employee Condi Rice, was named, along with Mobil Exxon. Marc Rich, whose pardon by Bill Clinton was denounced without end by conservatives, was also named but was not indicted.
What is interesting is the manner and intensity with which the Department of Justice went after Wyatt. The prosecution made Wyatt's patriotism the issue. His lawyers are trying to exclude from the evidence the diary of an employee of Iraq's State Oil Marketing Organization. It states that Wyatt bragged on January 27, 2003, while in Iraq, that he persuaded a US Senator to speak against the proposed invasion. Reuters claimed the senator was Edward Kennedy. The diary also stated that Wyatt warned of a US invasion and estimated the kinds of US forces the Iraqi were likely to face.
The government does not claim he told them anything that was classified. An intelligent reader would assume Wyatt wanted Saddam to back down so that oil would continue to flow. He was probably trying to prevent the war the Bushies were determined to launch.
The prosecution insists upon making him appear a traitor. His attorneys claim this information will prejudice the jury but they admit that Wyatt was no fan of George W. Bush. They add that he flew bombing missions in World War II. Reactionary columnist helped along the government's case, writing that Wyatt is "lucky he isn't charged with treason."
Apparently Wyatt's communications were being monitored since 2001. His former business partner David Chalmers, was also inducted. Chalmers has been described as a big Republican donor, but the fact is that he gave more to Democrats. Since 1989, he and his wife have given more than $500,000 to Democrats. Wyatt has angered the Bushes because he questioned the senior Bush's claims to have risen in the oil industry from humble origins. In 1990, he and John Connally incurred the wrath of the Bushes again when they negotiated the release of 22 oil workers being held by Saddam Hussein as "human hostages." Mrs. Bush signaled him out in her autobiography for placing "gain above honor." He has frequently been a thorn in the side of the big Texas energy interests, most recently leading a stockholders revolt against El Paso Corp., which had acquired his Coastal Corp.
It has been said that the touch and free-wheeling Wyatt is not even afraid of the devil. He will need every ounce of courage to face up to two years in a federal prison at his advanced age.
Some may draw the conclusion that it is not prudent to make large donations to the Democratic Party. There is a growing body of evidence that the Justice Department could be engaging in selective prosecutions for political purposes. In Mississippi, Paul Minor was sent to prison for donating to the campaign of a state supreme court justice even though Mississippi law seems to open the door to contributions by lawyers and companies. In Wisconsin, Georgia Thompson went to jail for awarding a contract to the lowest bidder. Fortunately, an appeals court reversed her conviction. In Alabama, former Democratic Governor Don Siegelman was sent to prison for appointing a contributor to a state board. In this case, there is compelling evidence that that charges were brought for political purposes.
The author is a retired history professor. Sherm has just released African-American Baseball: A Short History, which can be purchased through Internet book sellers.
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