Wyatt trial about oil for food, not Iraq war judge says

Houston Chronicle:

As jury selection began in Houston oilman Oscar Wyatt's trial on charges of making illegal payments to Saddam Hussein's regime, a federal judge told prospective jurors Wednesday that the war in Iraq isn't on trial.

Lawyers hope to seat 12 jurors and six alternates today, with lawyers' opening statements scheduled to begin Monday morning.

Wyatt is accused of funneling millions of dollars in illegal kickbacks to Saddam's regime to purchase oil under the United Nations' oil-for-food program.

Charged with fraud, conspiracy and violating U.S. sanctions laws restricting dealings with the former Iraqi regime, the 83-year-old Wyatt could be sentenced to 74 years in prison.

Wyatt doesn't dispute that he purchased crude under the oil-for-food program, but he contends all his dealings were legal.

U.S. District Judge Denny Chin said he expects references to Saddam, former Defense Secretary Donald Rumsfeld and former Secretary of State Colin Powell during the trial. And he asked prospective jurors whether they had family members serving in Iraq or Afghanistan.

But he also told the panelists they will not be sitting in judgment of today's U.S. policies in Iraq. "This is not a trial about the war in Iraq," he said.

Chin noted the case centers on activities that took place before the 2003 U.S.-led invasion.

Much of the questioning was behind closed doors after prospective jurors raised specific possible problems with serving. In open court, Chin asked panelists about their education, professions, what newspapers they read, what television shows they watch — Wheel of Fortune was a particular favorite.

Wyatt, wearing a dark, pin-striped suit and bright blue tie, arrived at the federal courthouse in Manhattan accompanied by his wife, Lynn Sakowitz Wyatt, an internationally known socialite, arts patron and charity fundraiser.

The founder of Houston's Coastal Corp. — now owned by El Paso Corp. — Oscar Wyatt is accused of acceding to the Iraqi regime's demands that buyers of its crude pay illegal surcharges of 10-50 cents per barrel. Payment of any surcharges was a violation of both the U.N. rules governing the oil-for-food program and U.S. law.

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Lynn Wyatt's maiden name is provided to remind folks she is part of a family which had an upscale department store in Houston for years and she may have been one of its better customers. Her husband is really charged with paying Saddam kickbacks so that he could get the oil contracts that were still very profitable.

This should be an accountants flow of funds case and not too much of a contest of what was said by various parties. The UN has already had a massive investigation of what was one of the largest corruption cases in the history of the world and this case appears to have sprung from that investigation. Look for the expert witnesses to be the key.