In the 1970s, he became involved in dealings with Libya. Wilson claimed that a high-ranking CIA official
Theodore "Blond Ghost" Shackley asked him to go to Libya to keep an eye on
Carlos the Jackal, the infamous terrorist, who was living there.—to go to Libya and train its military and intelligence officers. Wilson states that he regrets these incidents and had no prior knowledge of them. He claimed that he was still working for the CIA despite the government's continued denials, and that his supplying of weapon to the Libyans was an attempt to get close to them and gain valuable intelligence. This included attempts at gathering information on the Libyan nuclear program. The most dramatic deal, and the one that brought Wilson to the attention of the U.S. government, was for some twenty tons of military-grade
C-4 plastic explosives. Another scandal broke out around Wilson when a company he had formed to ship United States military aid to Egypt was convicted of overcharging the
United States Department of Defense by $8 million. A partner with Edwin P. Wilson in this company was another former CIA officer,
Thomas G. Clines. Wilson flew to the Caribbean, but upon arrival was arrested and flown to New York. He was put on trial four separate times. Before he stood trial, several prosecution witnesses died under suspicious circumstances, including Cuban exile Rafael Villaverde, who disappeared in a boating accident near the Bahamas after an explosion on his boat, and former CIA agent Kevin P. Mulcahy, who had worked for Wilson and blown the whistle to the government. Wilson's friend
Ricardo Morales, a longtime nemesis of Villaverde in the Cuban exile community, would die in a bar fight in December 1983. Wilson was found not guilty of trying to hire a group of
Cuban exiles to kill Libyan dissident
Umar Muhayshi (his co-defendant
Frank Terpil never stood trial as he was a fugitive the rest of his life and died in Cuba in 2016). He was found guilty of exporting guns, including the one used in the Bonn assassination and of shipping the explosives and sentenced to 15 years in prison for the former and 17 years for the latter. While awaiting trial, he allegedly approached a fellow prisoner and attempted to hire him to kill the federal prosecutors. The prisoner instead went to the authorities and they set Wilson up with an undercover agent. The agent taped Wilson hiring him to kill the prosecutors, six witnesses and his ex-wife. In a subsequent trial, he was sentenced to an added 24 years in jail for conspiracy to murder.
Legal defense Wilson's defense to the Libyan charges was that he was working at the behest of the CIA. The CIA gave the DOJ an affidavit stating that, after his retirement, he had not been employed directly or indirectly by the agency. The CIA later informed the DOJ that it should not use the affidavit at trial, but the prosecutor Ted Greenberg decided to use it anyway. While in prison, Wilson campaigned vigorously for his innocence and repeatedly filed
Freedom of Information Act requests with the government. Eventually, he found information linked to the memo and hired a new lawyer, David Adler, a former CIA officer who had clearance to view classified documents. Adler spent long hours poring through thousands of files and eventually found 80 incidents where Wilson met on a professional basis with the CIA and proof that the CIA had indirectly used Wilson after his retirement. In October 2003 U.S. District Judge Lynn Hughes, overturned his conviction on the explosives charge, finding that U.S. Justice Department prosecutors knew Wilson had worked for the CIA. On March 29, 2007, U.S. District Judge
Lee Rosenthal dismissed his case on the ground that all eight had immunity covering their actions. ==Later life==