[NYTr] Feds Catch a Real Arab Spy... Hired by Both FBI and CIA

[All the News That Doesn't Fit]

[Good god. If this is all accurate, she is one of the few real Arab
spies the fumbling feds have managed to arrest, a Lebanese with shadowy
connections who used forged papers and a fake marriage to gain
admission to the US, then FBI employment and security clearance, and
then an Operations job with the CIA. Operations means covert
operations, not a desk job. Quite remarkable. Of course the feds are
saying as little as possible. -NY Transfer]

The New York Times - Nov 14, 2007
http://www.nytimes.com/2007/11/14/washington/14spy.html

C.I.A. Officer Admits Guilt in Seeking Hezbollah Files

By PHILIP SHENON

WASHINGTON, Nov. 13 — A Lebanese-born C.I.A. officer who had previously
worked as an F.B.I. agent pleaded guilty on Tuesday to charges that she
illegally sought classified information from government computers about
the radical Islamic group Hezbollah.

The plea agreement by the defendant, Nada Nadim Prouty, appeared to
expose grave flaws in the methods used by the Central Intelligence
Agency and the Federal Bureau of Investigation to conduct background
checks on its investigators.

Ms. Prouty, 37, who also confessed that she had fraudulently obtained
American citizenship, faces up to 16 years in prison.

Court papers do not specifically say why Ms. Prouty sought information
about Hezbollah, the Iranian-backed militant group that is based in
southern Lebanon, from the F.B.I.’s computer case files in June 2003,
the month she left the bureau to join the C.I.A.

There is no accusation in the documents that she passed information on
to Hezbollah or any other extremist group.

The plea agreement noted, however, that Ms. Prouty’s sister and her
brother-in-law attended a fund-raising event in Lebanon in August 2002
at which the keynote speaker was Sheikh Muhammed Hussein Fadlallah, the
spiritual leader of Hezbollah. Sheikh Fadlallah has been designated by
the United States government as a terrorist leader.

The plea agreement said that in 2003 Ms. Prouty specifically went
searching for computerized case files maintained by the F.B.I.’s
Detroit field office in an investigation that centered on Hezbollah
although she “was not assigned to work on Hezbollah cases as part of
her F.B.I. duties and she was not authorized by her supervisor, the
case agent assigned to the case, or anybody else to access information
about the investigation in question.”

The C.I.A. would not describe Ms. Prouty’s duties at the agency, apart
from describing her as a “midlevel” employee, nor would it say if she
traveled abroad as part of her duties or had been considered undercover.

Government officials, speaking on the condition of anonymity because
they were not authorized to discuss details of the investigation with
reporters, said Ms. Prouty was an “operations” officer at the C.I.A.,
meaning she was involved in some way in basic espionage work, not as an
analyst or translator.

As part of the plea agreement, she agreed to resign from the C.I.A. and
give up any claim to American citizenship.

“It is fitting that she now stands to lose both her citizenship and her
liberty,” Kenneth L. Wainstein, assistant attorney general, said in
announcing the guilty plea, which was entered in Federal District Court
in Detroit.

Mr. Wainstein, who runs the Justice Department’s national security
division, said Ms. Prouty “engaged in a pattern of deceit to secure
U.S. citizenship, to gain employment in the intelligence community and
to obtain and exploit her access to sensitive counterterrorism
intelligence.”

She pleaded guilty to one count each of criminal conspiracy, which has
a maximum penalty of five years in prison and a $250,000 fine;
unauthorized computer access, which has a maximum penalty of one year
in prison and a $100,000 fine, and naturalization fraud, which has a
maximum penalty of 10 years in prison and a $250,000 fine.

In her plea agreement, Ms. Prouty, who lived mostly recently in Vienna,
Va., close to the C.I.A. headquarters in Langley, Va, acknowledged that
her crimes began shortly after she entered the United States from
Lebanon in June 1989 on a one-year student visa.

She acknowledged that after overstaying her visa, she had illegally
offered money to an unemployed American man to marry her in 1990, which
allowed her to remain in the United States as his wife, although the
couple never lived together.

She then submitted a series of false and forged documents to obtain
American citizenship, which she was granted in 1994. She obtained a
divorce the next year and worked in a series of jobs, including as a
waitress and hostess in a chain of Middle Eastern restaurants in the
Detroit area owned by her brother-in-law.

In 1997, she was hired as a special agent of the F.B.I., which has been
under pressure for years to hire more agents and other employees who
speak Arabic for terrorism investigations. She was assigned to the
bureau’s Washington field office, given a security clearance and placed
in “an extraterritorial squad investigating crimes against U.S. persons
overseas,” the Justice Department said in a statement to reporters.

Ms. Prouty acknowledged two sets of illegal computer searches at the
F.B.I. The first, in September 2002, involved case files that contained
her name, her sister’s name or her brother-in-law’s name. The second,
in June 2003, involved files from a national-security investigation of
Hezbollah that was being conducted in Detroit, which has one of the
nation’s largest Arabic-speaking communities.

The court papers say Ms. Prouty’s crimes first became known to the
F.B.I. in December 2005 and have been under investigation for nearly
two years. The documents suggest that she came under scrutiny as part
of an investigation of her brother-in-law, Talal Khalil Chahine, in a
scheme to funnel millions of dollars from his restaurant to people in
Lebanon. Mr. Chahine is a fugitive from tax evasion charges filed in
Michigan.

Copyright 2007 The New York Times Company