Katrina Leung Indicted

ABC reports that the FBI was told 12 years ago that Katrina Leung was secretly working for the Chinese.

Now-retired FBI agent I.C. Smith says the FBI learned then that Leung had tipped off Chinese authorities about a secret mission he took to China to evaluate embassy security. He says he even took still photos of the Chinese agents he caught following him. "They knew we were coming before we even left," I.C. Smith said. Traveling with him to China, it turns out, was the other now-retired FBI agent accused of having a secret sexual relationship with Leung, William Cleveland of San Francisco. It was clear to him, I.C. Smith said, that at least 12 years ago a pretty big warning flag went up to the FBI. "There's no doubt about it," he said. "And I viewed that as absolutely a monumental management failure within the FBI that allowed this source to continue to operate."

Leung was indicted today on five charges, including "two counts of copying defense-related documents with reason to believe they would be used to the injury of the United States or to benefit a foreign nation and three counts of unauthorized possession of documents relating to the national defense."

We find it curious that Leung has not been charged with espionage. We suspect this is due to the Government's desire to avoid having to disclose classfied information to the defense.

Leung's FBI handler and lover, James J. Smith, was indicted yesterday on two counts of negligence and wire fraud "for allegedly letting Leung have access to secrets during the course of a 20-year affair." You can access his Indictment ere.

Agent Smith is free on bail. Leung has been detained pending trial. The Justice Department negotitated with Smith's attorneys. Leung's attorneys say the Justice Department has not even called them to discuss the case. We ask, why the disparate treatment?

Sources now say the Leung/Smith case may prove to be the instigation for the pursuit of Wen Ho Lee.

Intelligence sources say the case also raises questions about why the FBI began its ultimately fruitless investigation of Taiwanese-born American scientist Wen Ho Lee and whether he was a victim of disinformation passed to the FBI.
"They're going to have to look at that completely if they have the stomach for it," Triplett said.

Lawyers for both Leung and Smith today asserted their clients' innocence. Leung's lawyers stated:

She is a loyal American who is being stabbed in the back by the people she worked faithfully for for over 20 years."

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