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L.A. agog at arrest of socialite for aiding China
LOS ANGELES, California (Reuters) -- For years she was a society hostess, a prominent Chinese-American who hobnobbed with politicians, presidents and millionaires. But on Thursday Katrina Leung was behind bars and Los Angeles was buzzing with news that she had been charged with being a double agent who passed classified national security information to China obtained during a secret 20-year love affair with her FBI handler. Leung, 49, was jailed pending a hearing next week and her FBI handler, James Smith, now retired, was released on bail on charges of gross negligence for allegedly allowing Leung to obtain documents from a briefcase he left open at her posh San Marino home during "debriefing" sessions. "There is not a lot of spy intrigue in Los Angeles politics, so people are absolutely shocked at this," a city hall insider told Reuters. "I think the ripple effects of her arrest have not yet been fully understood." Both Leung and Smith were arrested on Wednesday after a year-long investigation. The information Leung is alleged to have passed to China included details on FBI personnel, phone lists and intelligence on the whereabouts of Chinese fugitives. Leung, who runs a business consultancy and a bookstore, had a vast network of contacts, serving as a director of the influential Los Angeles World Affairs Council, as secretary of the National Association of Chinese Americans. She also helped organize banquets and functions for Chinese dignitaries including one for then-Premier Zhu Rongji during a visit in 1999. Republican activist
"We were as surprised and shocked as anyone when the news broke regarding Ms Leung. Ms Leung has been a community activist for many years but has served as a volunteer board member of the Council for only three months," said J. Curtis Mack, president of the Los Angeles World Affairs Council. She was an activist for former Republican Mayor Richard Riordan, accompanying him on a 1998 trip to China, and a fund-raiser for California's Republican 2002 gubernatorial candidate Bill Simon. Simon, in a campaign speech last year, called Leung an "old and dear friend," according to a published transcript. Simon could not be reached for comment on Thursday. Leung was also the president emeritus of the Los Angeles- Guangzhou Sister City Organization and took part in an international trade forum in Hong Kong in December last year. Leung's lawyers said in a statement she was a "loyal American citizen" who had worked for 20 years under the direction of the FBI. "She repeatedly endangered herself in order to make significant contributions to the security and well-being of the United States. "We believe that when the full story is known. Ms Leung will be cleared of all wrongdoing and the extent of her heroic contributions to this country will be revealed," the statement said. According to an FBI affidavit, Leung worked as a paid "asset" of the United States providing her handlers with information about China for almost 20 years. But during much of that time Leung, who is married, had a clandestine relationship with Smith who was supposed to be monitoring her activity. The affidavit said Leung had admitted to FBI investigators that Smith would come to her house for debriefing sessions and leave his briefcase open, which allowed her to take and copy documents without Smith's knowledge. Leung also admitted providing the information she obtained to her handlers at the Ministry of State Security -- a Chinese intelligence service, the affidavit said. Copyright 2003 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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