DATE=4/3/98 TYPE=CORRESPONDENT REPORT NUMBER=2-229196 TITLE=C-I-A ALLEGED SPY (L) BYLINE=JIM MALONE DATELINE=WASHINGTON CONTENT= VOICED AT: INTRO: A FORMER MID-LEVEL EMPLOYEE FOR THE U-S CENTRAL INTELLIGENCE AGENCY WAS CHARGED WITH FOUR COUNTS OF ESPIONAGE FRIDAY AND ONE COUNT OF ATTEMPTED EXTORTION. FORMER C-I-A EMPLOYEE DOUGLAS GROAT APPEARED BEFORE A FEDERAL JUDGE IN WASHINGTON AND PLED NOT GUILTY TO ALL FIVE COUNTS. V-O-A CORRESPONDENT JIM MALONE WAS THERE AND HAS A REPORT. TEXT: FIFTY-YEAR OLD DOUGLAS GROAT WORKED FOR THE C-I-A FROM 1980 UNTIL 1996. BUT ACCORDING TO FEDERAL LAW ENFORCEMENT OFFICIALS, MR. GROAT WAS ALSO DOING SOME ILLEGAL WORK ON THE SIDE. FEDERAL OFFICIALS UNSEALED AN INDICTMENT FRIDAY CHARGING MR. GROAT WITH FOUR COUNTS OF ESPIONAGE WHICH ALLEGEDLY INVOLVED PASSING U-S DEFENSE SECRETS AND INFORMATION ABOUT COMMUNICATIONS SYSTEMS TO TWO FOREIGN GOVERNMENTS. FEDERAL OFFICIALS SAY THEY WILL NOT IDENTIFY THE TWO FOREIGN GOVERNMENTS INVOLVED IN THE CASE FOR NATIONAL SECURITY REASONS. THE INVESTIGATION INTO MR. GROAT'S ACTIVITIES HAS BEEN UNDERWAY FOR A YEAR NOW AND WAS A JOINT EFFORT BY THE F-B-I AND THE U-S ATTORNEY'S OFFICE IN WASHINGTON. WILMA LEWIS IS THE U-S ATTORNEY FOR THE DISTRICT OF COLUMBIA. /// LEWIS ACT. /// DURING GROAT'S EMPLOYMENT WITH THE C-I-A, HE PARTICIPATED IN CLASSIFIED, COVERT OPERATIONS AIMED AT THE PENETRATION OF CRYPTOGRAPHIC (COMMUNICATIONS) SYSTEMS OF FOREIGN GOVERNMENTS. THE ALLEGED UNAUTHORIZED DISCLOSURE OF THESE ACTIVITIES COULD HAVE A SIGNIFICANT IMPACT ON THE NATIONAL SECURITY OF THE UNITED STATES. /// END ACT. /// FEDERAL OFFICIALS ALSO ALLEGE THAT MR. GROAT TRIED TO EXTORT HALF A MILLION DOLLARS FROM THE C-I-A. ONCE AGAIN, U-S ATTORNEY WILMA LEWIS. /// LEWIS ACT. /// GROAT HAS ALSO BEEN CHARGED WITH ONE COUNT OF ALLEGEDLY ATTEMPTING TO EXTORT IN EXCESS OF FIVE-HUNDRED THOUSAND DOLLARS FROM THE C-I-A IN RETURN FOR AGREEING NOT TO REVEAL TO FOREIGN GOVERNMENTS C-I-A ACTIVITIES AND METHODS THAT WERE KNOWN TO HIM AS A RESULT OF HIS EMPLOYMENT. /// END ACT. /// DURNG A COURT APPEARANCE FRIDAY, MR. GROAT PLED NOT GUILTY TO ALL FIVE COUNTS. HE WILL APPEAR IN COURT AGAIN NEXT WEEK FOR A HEARING ON WHETHER OR NOT HE SHOULD BE HELD WITHOUT BOND UNTIL HIS TRIAL. FEDERAL OFFICIALS WANT TO KEEP HIM DETAINED, ARGUING THAT HIS EXPERTISE IN DISGUISE AND DECEPTION MAKE HIM A THREAT TO FLEE THE COUNTRY. THE GROAT CASE OF ALLEGED ESPIONAGE IS THE LATEST OF SEVERAL SPY CASES WHICH HAVE ROCKED THE C-I-A IN RECENT YEARS. IN 1994, FORMER C-I-A OFFICIAL ALDRICH AMES WAS ARRESTED AND PLED GUILTY TO BETRAYING AT LEAST 11 C-I-A AGENTS WORKING IN THE FORMER SOVIET UNION AND EASTERN EUROPE. LAST YEAR, HAROLD NICHOLSON BECAME THE HIGHEST-RANKING C-I-A OFFICER EVER CONVICTED IN A SPY CASE WHEN HE ALSO PLED GUILTY TO SPYING FOR MOSCOW. (SIGNED) NEB/JBM/KL 03-Apr-98 2:15 PM EST (1915 UTC) NNNN Source: Voice of America .