SPY CASES - UNITED STATES

The James J. Smith-Katrina Leung Case

 

Materials arranged chronologically.

Eggen, Dan, and Kimberly Edds. "Ex-FBI Agent, Longtime 'Asset' Arrested in Spy Case." Washington Post, 10 Apr. 2003, A22. [http://www.washingtonpost.com]

See also, Greg Krikorian, David Rosenzweig, and K. Connie Kang, "Ex-FBI Agent Is Arrested in China Espionage Case," Los Angeles Times, 10 Apr. 2003; Eric Lichtblau and Barbara Whitaker, "Ex-F.B.I. Agent Is Accused of Passing Secrets to Lover," New York Times, 10 Apr. 2003; and Jerry Seper, "Ex-Agent for F.B.I. Arrested in Theft," Washington Times, 10 Apr. 2003.

Eggen, Dan, and Susan Schmidt. "Ex-FBI Agent Resigns Post at Nuclear Weapons Lab: Officials Examine Link to Spy Case." Washington Post, 11 Apr. 2003, A3. [http://www.washingtonpost. com]

William Cleveland Jr., head of security at Lawrence Livermore National Laboratory, resigned his post on 10 April 2003. The lab has "stripped him of his security clearances and launched an investigation of his nine-year tenure" in a position he has held since retiring from the FBI in 1993.

Cleveland "is referred to anonymously in FBI affidavits unsealed [on 9 April 2003] in the espionage-related case that has resulted in the arrests of another former agent, James J. 'J.J.' Smith, and Los Angeles socialite Katrina M. Leung.... He has not been charged in connection with the case.... The court papers reveal that Cleveland admitted having a sexual relationship with Leung from 1988 until he retired in 1993, and that the intermittent affair resumed in 1997 and 1999. He maintained the relationship even after discovering that Leung had unauthorized contact in 1991 with the Chinese intelligence service, court documents say."

Murphy, Dean E., and Calvin Sims. "After Espionage Arrests, F.B.I. Looks Back and Wonders, 'How?'" New York Times, 11 Apr. 2003. [http://www.nytimes.com]

On 9 April 2003, Katrina Leung, a Los Angeles businesswoman, was arrested "on charges of obtaining a classified national security document for the Chinese government." The FBI said that Leung "had a 20-year affair with James J. Smith, a former F.B.I. agent who had recruited her as an informer, and that she had passed on information culled from Mr. Smith. Officials said she sometimes surreptitously photocopied classified documents he had left unattended at her house. Mr. Smith, 59, who worked for the F.B.I. for 30 years before retiring in 2000, was also arrested and charged with negligence." See also, Eric Lichtblau, "F.B.I. Never Gave Agent in Spy Case a Polygraph," New York Times, 11 Apr. 2003.

Lichtblau, Eric. "F.B.I. Was Told Years Ago of Possible Double Agent." New York Times, 12 Apr. 2003. [http://www.nytimes.com]

According to current and former officials, senior FBI officials were told as early as 1991 that Katrina Leung "appeared to be spying for the Chinese, but they continued using her as an informer nonetheless."

Schmidt, Susan, and Dan Eggen. "FBI Assesses Potential Spy Damage: Congress Told FBI Probes Dating From at Least 1991 Under Review." Washington Post, 12 Apr. 2003, A10. [http://www.washingtonpost.com]

"Top FBI officials have told members of Congress that every Chinese counterintelligence case investigated by the FBI since at least 1991 may have been compromised by a suspected agent of the Chinese government arrested in Los Angeles this week. The unfolding spy case, involving alleged Chinese double agent Katrina M. Leung and her FBI contact, former senior China counterintelligence agent James J. Smith, will require major damage assessment of Chinese espionage and technology transfer investigations, according to congressional leaders who have been briefed on the probe."

Risen, James, and Eric Lichtblau. "Spy Suspect May Have Told Chinese of Bugs, U.S. Says." New York Times, 15 Apr. 2003. [http://www.nytimes.com]

On 14 April 2003, government officials said that "[c]ounterintelligence officials fear that an F.B.I. informer in Los Angeles tipped off the Chinese government to a covert [U.S.] effort to plant listening devices aboard China's version of Air Force One... The National Security Agency,... working with the [FBI] and other intelligence organizations, led an operation to plant bugs in a Boeing 767 used by the president of China while it was in the United States for refitting, officials said. The listening devices were quickly discovered, and the Chinese government disclosed the incident early last year."

Edds, Kimberly, and Dan Eggen. "Alleged Chinese Spy Is Denied Bail." Washington Post, 16 Apr. 2003, A8. [http://www.washingtonpost.com]

Krikorian, Greg. "What Did FBI Know When in Spying Case." Los Angeles Times, 19 Apr. 2003. [http://www.latimes.com]

Sanchez, Rene. "Agent in Spy Saga Was 'One of Us.'" Washington Post, 20 Apr. 2003, A1. [http://www.washingtonpost.com]

Risen, James, and Eric Lichtblau. "Intelligence on China Was Forwarded to Presidents." New York Times, 29 Apr. 2003. [http://www.nytimes.com]

"Intelligence leads" provided by Katrina Leung "may have gone to every president from Ronald Reagan to George W. Bush," U.S. officials have said. "Much of Ms. Leung's information related to the political and diplomatic maneuverings of the Chinese leadership in Beijing, as well as the inner workings of China's intelligence service."

Rosenzweig, David. "Financial Accusations a Subplot in Spy Case." Los Angeles Times, 4 May 2003. [http://www.latimes.com]

"In declaring Katrina Leung a flight risk and ordering her held without bail, a U.S. magistrate expressed concern, not only about her close ties to high-ranking officials in China, but also about the possibility that she might have large sums of money hidden in overseas accounts."

Eggen, Dan. "Handling of Secrets in Spy Cases Debated." Washington Post, 7 May 2003, A2. [http://www.washingtonpost.com]

The prosecution of Katrina Leung and James J. Smith "has sparked a strenuous debate among U.S. law enforcement and intelligence officials over how to protect classified information while pursuing the charges in the case, according to people familiar with the deliberations."

Schmidt, Susan. "Ex-FBI Agent Indicted in Spy Probe." Washington Post, 8 May 2003, A6. [http://www.washingtonpost.com]

Lichtblau, Eric. "F.B.I. Informant Is Charged with Copying Secret Papers." New York Times, 9 May 2003. [http://www.nytimes.com]

Ragavan, Chitra, and Carol Hook. "China Doll." U.S. News & World Report, 10 Nov. 2003, 38ff.

"U.S. News has conducted an extensive review of the [Katrina Leung] case..., examining hundreds of pages of court records and interviewing more than a dozen current and former counterintelligence experts. The review reveals a systemic failure of security procedures and a stunningly free-and-easy pattern of access by Leung to some of the nation's most highly secret intelligence operations."

Krikorian, Greg. "Handler of Alleged Spy Cuts Plea Deal." Los Angeles Times, 12 May 2004. [http://www.latimes.com]

See also, Susan Schmidt and Kimberly Edds, "Ex-Handler of Alleged FBI Spy Cuts Deal," Washington Post, 13 May 2004, A3.

Lichtblau, Eric. "F.B.I. Agent Pleads Guilty in Deal in Chinese Spy Case." New York Times, 13 May 2004. [http://www.nytimes.com]

On 12 May 2004, James J Smith, former senior FBI agent accused of having an affair with suspected Chinese double agent Katrina Leung, pled guilty to a charge of falsely concealing that affair from the Bureau. As part of the plea agreement, Federal prosecutors dropped two counts of gross negligence in handling of national security documents. Smith will probably avoid prison time.

Associated Press. "Charges Dropped in FBI 'Spy Case': Judge Throws Out Case against Chinese-American Woman." 6 Jan. 2005. [http://www.cnn.com]

On 6 January 2005, U.S. District Judge Florence Marie Cooper "dismissed all charges" against Katrina Leung "accused of using a sexual affair with an FBI agent to gain unauthorized access to classified documents."

Lefebvre, Stéphane. "Sex Again: The Smith-Leung Case." International Journal of Intelligence and Counterintelligence 18, no. 2 (Summer 2005): 296-304.

"Smith was not properly held to account, which indicates a failure in leadership and administrative/personnel management at the Bureau.... Smith's lack of respect for well-established operational and ethical standards could have been caught sooner had the FBI's operational and personnel policies been fully and consistently enforced."

CNN. "Accused Double Agent Pleads to Tax Charge." 16 Dec. 2005. [http://www.cnn.com]

On 16 December 2005, Katrina Leung, a prominent Chinese-American businesswoman "accused of being a Chinese double agent[,] pleaded guilty" to "a tax violation and lying to authorities about her longtime affair" with FBI counterintelligence agent James J. Smith. Leung was sentenced to "three years of probation and was ordered to complete 100 hours of community service. She also must pay a $10,000 fine and participate in FBI debriefings for 18 months."

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