FBI Probes Israeli Spy Case


Richard Moore

Original source URL:

FBI Probes Pentagon Spy Case
Aug. 27, 2004

CBS News has learned that the FBI has a full-fledged espionage investigation 
under way and is about to -- in FBI terminology -- "roll up" someone agents 
believe has been spying not for an enemy, but for Israel from within the office 
of the Secretary of Defense at the Pentagon.

60 Minutes Correspondent Lesley Stahl reports the FBI believes it has "solid" 
evidence that the suspected mole supplied Israel with classified materials that 
include secret White House policy deliberations on Iran.

At the heart of the investigation are two people who work at The American Israel
Public Affairs Committee (AIPAC), a powerful pro-Israel lobby in Washington.

The FBI investigation, headed up by Dave Szady, has involved wiretaps, 
undercover surveillance and photography that CBS News was told document the 
passing of classified information from the mole, to the men at AIPAC, and on to 
the Israelis.

CBS sources say that last year the suspected spy, described as a trusted analyst
at the Pentagon, turned over a presidential directive on U.S. policy toward Iran
while it was, "in the draft phase when U.S. policy-makers were still debating 
the policy."

This put the Israelis, according to one source, "inside the decision-making 
loop" so they could "try to influence the outcome."

The case raises another concern among investigators: Did Israel also use the 
analyst to try to influence U.S. policy on the war in Iraq?

With ties to top Pentagon officials Paul Wolfowitz and Douglas Feith, the 
analyst was assigned to a unit within the Defense Department tasked with helping
develop the Pentagon's Iraq policy.

Defense Secretary Donald Rumsfeld has been made aware of the case. The 
government notified AIPAC today that it wants information about the two 
employees and their contacts with a person at the Pentagon.

AIPAC told CBS News it is cooperating with the government and has hired outside 
counsel. It denies any wrongdoing by the organization or any of its employees.

An Israeli spokesman said, "We categorically deny these allegations. They are 
completely false and outrageous." The suspected spy has not returned repeated 
phone calls from CBS News.

©MMIV, CBS Broadcasting Inc. All Rights Reserved.

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