For Immediate Release
April 9, 2003 Washington D.C.
FBI National Press Office

Affidavit for James J. Smith
Affidavit for Katrina Leung

Statement by FBI Director Robert S. Mueller

WASHINGTON, DC - "Today's arrests represent the culmination of a lengthy investigation. But it is a sad day for the FBI. James Smith was once a Special Agent, sworn to uphold the rule of law and the high ethical standards of the FBI. According to today's charges, former Agent Smith not only betrayed the trust the FBI placed in him, he betrayed the American people he was sworn to protect.

"The allegations against former Agent Smith and his source Katrina Leung are serious. Allegations that he caused the loss of classified information, as well as his personal indiscretions with Ms. Leung, are very serious and warrant a strong response.

"Accordingly, within days after the allegations of former Agent Smith's misconduct were first brought to my attention, we appointed Assistant United States Attorney Randy Bellows as Special Counsel and asked him to conduct a preliminary inquiry. Upon Mr. Bellows' recommendation, we appointed an Inspector-In-Charge to lead an investigation into the allegations and the integrity of the China counterintelligence program in the Los Angeles field office. Over the next thirteen months, the Inspector-in-Charge, his team of experienced Agents and the U.S. Attorney's Office in Los Angeles conducted a thorough investigation that resulted in today's charges.

"In addition to the criminal investigation, we are undertaking several administrative and organizational reviews to determine what went wrong, why our safeguards failed to detect this misconduct sooner, and where accountability lies. The Deputy Director is overseeing an exhaustive review of the practices and procedures governing our human asset program to ensure that effective source development is coupled with strict accountability and oversight. We have asked the Department of Justice Inspector General Glenn Fine to conduct a thorough review of the performance and management issues relating to this case. We have also tasked an Inspection team with reviewing the management of the China counterintelligence program during the duration of the misconduct and assessing responsibility for the management lapses that allowed it to occur. These efforts will enhance oversight and accountability in our human intelligence
Program, and will help to prevent the misconduct detailed in today's charges from ever occurring again."

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