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Grand Jury Decision on Leung Indictment Expected Today
Aired May 08, 2003 - 14:49 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Now, let's shift gears here a little bit. This is a story that reads like a Clancy novel. It's a case playing out in Los Angeles. A federal grand jury is deciding whether to indict alleged double agent Katrina Leung. She is accused of passing FBI documents to China. Meanwhile, Leung's FBI handler has been indicted and accused of having an affair with her.
CNN's Charles Feldman is here -- I don't know whether it is a story or a treatment, right, Charles?
CHARLES FELDMAN, CNN CORRESPONDENT: Miles, this is a story that's created its own tornado. We've called it everything from "I Spy" to "The Spy Who Loved Me." We have kind of run out of cliches at this point.
But one thing that you can call it is a major embarrassment to the FBI.
(BEGIN VIDEOTAPE)
FELDMAN (voice-over): They made a loving couple, no one is disputing that. James Smith, Katrina Leung. Only they both were married throughout their 20-year affair, and he was supposed to be her FBI handler.
Leung, you see, is a prominent Chinese-American who was paid almost $2 million by the FBI over 20 years to spy on the Chinese for the U.S.
The catch is, Leung was arrested recently on espionage-related charges. Federal officials claiming she actually was spying on the United States for China. Smith Wednesday was indicted by a federal grand jury on charges of wire fraud and gross negligence.
DEBRA YANG, U.S. ATTORNEY: During conversations with the FBI over the past several months, Leung described how Smith would come to her house and leave his briefcase open, which gave her the opportunity to take documents out of the briefcase and copy them without Smith's knowledge.
FELDMAN: Smith's attorney says he is disappointed the government charged his client, who is slated to be arraigned next week. As for Leung, a grand jury is still investigating her and a decision on whether to indict is expected Thursday.
(END VIDEOTAPE)
FELDMAN: And, of course, Thursday is today, and we're expecting to hear from that grand jury by the end of this day -- Miles.
O'BRIEN: Charles Feldman, we appreciate that. Joining us from Los Angeles.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired May 8, 2003 - 14:49 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Now, let's shift gears here a little bit. This is a story that reads like a Clancy novel. It's a case playing out in Los Angeles. A federal grand jury is deciding whether to indict alleged double agent Katrina Leung. She is accused of passing FBI documents to China. Meanwhile, Leung's FBI handler has been indicted and accused of having an affair with her.
CNN's Charles Feldman is here -- I don't know whether it is a story or a treatment, right, Charles?
CHARLES FELDMAN, CNN CORRESPONDENT: Miles, this is a story that's created its own tornado. We've called it everything from "I Spy" to "The Spy Who Loved Me." We have kind of run out of cliches at this point.
But one thing that you can call it is a major embarrassment to the FBI.
(BEGIN VIDEOTAPE)
FELDMAN (voice-over): They made a loving couple, no one is disputing that. James Smith, Katrina Leung. Only they both were married throughout their 20-year affair, and he was supposed to be her FBI handler.
Leung, you see, is a prominent Chinese-American who was paid almost $2 million by the FBI over 20 years to spy on the Chinese for the U.S.
The catch is, Leung was arrested recently on espionage-related charges. Federal officials claiming she actually was spying on the United States for China. Smith Wednesday was indicted by a federal grand jury on charges of wire fraud and gross negligence.
DEBRA YANG, U.S. ATTORNEY: During conversations with the FBI over the past several months, Leung described how Smith would come to her house and leave his briefcase open, which gave her the opportunity to take documents out of the briefcase and copy them without Smith's knowledge.
FELDMAN: Smith's attorney says he is disappointed the government charged his client, who is slated to be arraigned next week. As for Leung, a grand jury is still investigating her and a decision on whether to indict is expected Thursday.
(END VIDEOTAPE)
FELDMAN: And, of course, Thursday is today, and we're expecting to hear from that grand jury by the end of this day -- Miles.
O'BRIEN: Charles Feldman, we appreciate that. Joining us from Los Angeles.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
