A Perry Mason Moment for an Oil Tycoon

Almost a month into his federal trial on charges that he paid millions of dollars in illegal kickbacks to former Iraqi dictator Saddam Hussein in 2001 to help the company evade United Nations sanctions, oil tycoon Oscar Wyatt unexpectedly threw in the towel this morning.

Wyatt agreed to acknowledge his role in the United Nations oil-for-food scandal and to plead guilty to a single count of conspiracy to commit wire fraud, one of five charges against him.

Federal prosecutors had accused Wyatt of paying kickbacks to Saddam's government in exchange for oil contracts during 2000 and 2001, in violation of a U.N. program that was designed to provide humanitarian assistance to Iraq while it was under sanctions.

The program was terminated in 2003, after being corrupted by Iraqi officials demanding illegal surcharges in return for contracts to buy Iraqi oil.

Wyatt, now 83, has long been a controversial character in American business. The self-made billionaire built energy giant Coastal Corporation from nothing and sold it to El Paso Corp. for $17 billion.

Wyatt famously flew to Iraq with former Texas Governor John Connally in 1990 to free U.S. citizens held in Baghdad, and returned with two dozen Americans in tow.

But the oil tycoon is known for being bold and brutish, with personal ties to Saddam Hussein that most would call too close for comfort.

Wyatt agreed in a Manhattan federal court to forfeit $11 million and could face 18 to 24 months in prison. He's currently free on bail pending his sentencing on November 27.

by Liz Gunnison