I. Introduction
In 2000, the Federal Bureau of Investigations (FBI) received information that a highly paid asset was actively spying for the People’s Republic of China (PRC) against the United States. Approximately a year later, the FBI launched an investigation into the allegations against Katrina Leung. The FBI would discover not only was she spying but she an 18 year romantic relationship with her handler Special Agent James J. Smith. Katrina Leung was also involved in a sporadic affair with William Cleveland another highly a steamed FBI Special Agent who retired in 1993. The investigation further revealed that over the years, FBI officials had knowledge of many other incidents indicating Katrina Leung provided classified U.S. government information to the PRC without FBI approval. During Katrina Leung 18 years as an FBI asset, Leung received over $1.7 million in services and expenses. In April 2003, Smith and Leung were arrested. The Office of the Inspector General (OIG) reviewed the FBI’s handling of Leung and management problems in regards to her case. OIG would also recommend changes to enhance and improve FBI procedures and practices wherever needed. The OIG revealed the FBI did little to nothing at all to handle the numerous counterintelligence (CI) issues that…show more content… Leung instructed a PRC Consulate official in the San Francisco area to call her from a pay, indicating she had something to tell him and did not want other to hear. The FBI became aware of the situation but the case agent decided to close the case after learning Leung was an FBI asset. Once again, the FBI did not follow up on Leung’s activities. Neither Smith nor his supervisor ever questioned Leung about her conversation with the PRC Consulate. Throughout the 1980s, Leung reporting was correct and properly vetted, she passed two polygraphs and even a Chinese defector confirmed much of Leung’s
