Former FBI agent pleads not guilty in military bribery case

SALT LAKE CITY — A former FBI agent accused of trying to derail a federal investigation into an alleged $54 million defense contract bribery scheme pleaded not guilty in U.S. District Court.

Robert G. Lustyik Jr., 50, of Sleepy Hollow, N.Y., is charged with fraud and obstructing justice.

Lustyik, a 20-year FBI veteran, used his position in an attempt to stave off a criminal investigation into the owner of Boston-based American International Security Corp., according to the indictment. Three others, including a retired Army lieutenant colonel, have been charged with using insider bidding to win contracts to train Afghan commandos.

The investigation began in Utah when a security company associate's transactions involving large sums of money at a St. George credit union raised suspicion.

E-mail: romboy@desnews.com

Twitter: dennisromboy