Ex-FBI Man Charged in Double Agent Affair

April 9 -- A retired FBI agent who allegedly had an affair with a suspected Chinese double agent while he was in charge of the FBI's Chinese counterintelligence operation in California is under arrest, charged with gross negligence, federal officials said.

The former agent, identified as James Smith, allegedly had a sexual relationship with Katrina Leung, a Republican Party activist in California, officials said.

Smith, 59, who retired from his job in the bureau's Los Angeles office in 2000, had been in charge of the office's China counterintelligence squad and was Leung's primary "handler" in her work for the United States, law enforcement officials said.

"It is a sad day for the FBI," bureau Director Robert Mueller said in a statement. "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."

Leung, 49, operated as an "FBI asset" from the early 1980s until 2002, providing the FBI with information about China, the affidavit said. Between 1983 and 2002, the FBI paid Leung $521,440 for her work as well as reimbursing her for nearly $1.2 million.

Documents Were Copied, Officials Say

Law enforcement officials said when the couple met, Leung allegedly went through Smith's briefcase and made copies of often-classified material, including the names of FBI agents investigating allegations of Chinese espionage. Court records suggest the copies were made without Smith's knowledge, even though he left them where she had access to them.

But the court documents also said Smith knew Leung had inappropriate contact with representatives of the People's Republic of China, but nevertheless continued the relationship.

Court documents also allege that Leung had sexual relations with another senior FBI official, this time in San Francisco.

Smith and Leung — who is charged with unauthorized copying of U.S. secrets with intent ofproviding them to Chinese intelligence services — both made initial appearances in U.S. District Court in Los Angeles this afternoon.