Cordelia I. Ekwueme, who served as OIC's chief financial officer for seven years, bought at least 545 cell phones for shipment to Nigeria with the agency's funds shortly before leaving OIC at the end of last year, according to court records. Martin Kohler, Ekwueme's attorney, said Tuesday that he expects U.S. Attorney Steven Biskupic to file unspecified charges against Ekwueme. Biskupic declined to comment, except to say the investigation continues.

Ekwueme, 47, would become the second top OIC official to be indicted. Carl Gee, the former executive director, was convicted of conspiracy last August in connection with a kickback scheme involving former state Sen. Gary R. George and some $500,000 in taxpayer money from the Wisconsin Works welfare reform program and other programs. Gee's sentencing is set for Jan. 25.

Also Tuesday, two OIC affiliates agreed to plead guilty to felonies linked to illegal kickbacks paid to George, and to dissolve. The Garfield Foundation and Opportunities Investment Associates handled property and side investments for OIC. The investment arm funneled some $200,000 in taxpayer money from Wisconsin Works to a Virgin Islands television station controlled by George. That firm agreed to plead guilty to intentional misapplication of public funds. Garfield agreed to plead guilty to presenting a falsified document to a federal grand jury probing the OIC-George kickback scheme. The firms face up to $500,000 in fines on each conviction. OIC attorney David Cannon and Biskupic declined to comment on the plea agreement.

OIC officials could not be reached for comment Tuesday on the plea agreement or what it would mean to more than $4 million worth of OIC property held in Garfield's name. The investment arm has a partial ownership interest in two development firms, as well as a corn-roasting business. It also once owned a cell phone service company and a pallet company.

A naturalized American citizen, Ekwueme was born in Nigeria but came to the U.S. about 20 years ago, according to her testimony at Gee's trial. She was hired by OIC in 1997 after having worked as administrator of the unclaimed property program of Washington, D.C., she said. Her salary at OIC was $151,278, according to information OIC provided to state auditors in September, making her one of its highest-paid employees.

In an interview with an FBI agent last Wednesday, Ekwueme admitted purchasing the cell phones with agency money for non-OIC purposes and said she planned to reimburse the agency, according to an affidavit filed in federal court. The Redeemed Christian Church of God, which was founded in Nigeria in 1952, was going to distribute the phones, according to her statement. Ekwueme could not be reached for comment Tuesday.

Federal authorities were tipped to the cell phone deal Dec. 22, when Immigration and Customs officials at a Connecticut airport "intercepted three large packages destined for Nigeria," according to an affidavit filed in support of a search warrant. Inside one they found between 80 and 100 Motorola Cingular Wireless cell phones, according to the affidavit. Further investigation showed the box was part of a larger order by OIC. Federal agents served a search warrant at Ekwueme's New Berlin home late last week. They seized 108 boxed cell phones and various documents related to them, court records show.

Cingular officials said the total order was for 545 cell phones, which would cost $45,780 and were to be funded by a federal grant. Cingular officials would not have sold the phones at that price if they had known they were bound for Africa, according to the affidavit.

Tyrone Dumas, the interim executive director of OIC, told an FBI agent on Jan. 5 that the purchase of the phones had not been authorized. He also said Ekwueme tendered her resignation around the end of October, effective Dec. 31. She was not in the office for much of December because she was using vacation time, according to the affidavit.

Meanwhile, the OIC board of directors has approved a major slimming of the agency, including more than $690,000 in cuts to executive salaries, Dumas said Tuesday on radio station WMCS-AM (1290). He said he was negotiating a new, reduced-salary contract for himself. He was hired two months ago at an annual rate of $165,000 and has said he would take a $45,000 cut.

During a hearing at the Capitol last month, state lawmakers ordered OIC to report by mid-January on progress toward reforming the agency and restructuring its affiliates and board of directors. OIC submitted a draft report to the Department of Workforce Development on Tuesday, but a department spokeswoman refused to release it. OIC Board Chairman the Rev. Fred Crouther couldn't be reached Tuesday. An aide said Dumas was sick and left work early Tuesday.