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Former FBI Spy Handler Pleads Guilty

James J. Smith, former FBI supervisor and handler of accused spy Katrina Leung pleaded guilty in federal court in LA today. He most likely will avoid jail because he cut a deal to testify against his former lover and asset, Ms. Leung.

A former FBI counterintelligence supervisor pleaded guilty yesterday to lying about a long-running sexual affair he had with a prized bureau informant now accused of spying for China.....Smith, 60, agreed to cooperate with the government's ongoing investigation into Leung's suspected 20-year penetration of FBI counterintelligence efforts, which could include testifying against her if she is tried next year. In exchange, charges involving mail fraud and mishandling of classified documents against Smith will be dropped.

In addition to not telling the bureau of his affair with Leung, Smith also was accused of withholding his discovery in 1991 that the Chinese government knew that the FBI had her on its payroll as an informant....By agreeing to the unusually light sentence, officials said, the government hopes to build a stronger case against Leung, speed its damage assessment and avoid having to air more national security information during a trial....Four remaining counts of the indictment against Smith will be dismissed when he is sentenced in January if the government is satisfied with his cooperation. He faces a maximum penalty of five years in prison, but U.S. District Court Judge Florence-Marie Cooper said she did not "anticipate this punishment will be imposed in this case." Smith, who retired at 57, also will be allowed to keep his FBI pension.

Leung, who was paid $1.7 million by her FBI handlers, had an off-and-on sexual relationship with another former FBI counterintelligence agent during some of the years that she was involved with Smith. William Cleveland Jr., formerly an agent in San Francisco and then security chief at Lawrence Livermore National Laboratory, has cooperated with investigators and was not charged in the case.

We covered this case fairly extensively last year --you can access all of our coverage here.

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