Vol. 12, No. 3,009 - The American Reporter - October 19, 2006

The American Reporter
proudly celebrates today
Our 8th Anniversary
1995 - 2003

An AR Exclusive

by Joe Shea
American Reporter Correspondent
Los Angeles, Calif.

Printable version of this story

LOS ANGELES, April 10, 2003 -- The American Reporter has learned that Katrina Leung, an alleged Chinese spy, who was a director of the influential Los Angeles World Affairs Council and a longtime California Republican Party activist, was a donor to Republican candidates at least since 1998 and as recently as last December. She was arrested and charged with espionage Wednesday in Los Angeles Federal Court.

The government charged that Leung carried on a 20-year affair with retired FBI agent James J. Smith, 59, who was in charge of Chinese counterintelligence at the Los Angeles field office and was charged with gross negligence in his handling of national security information. He has been released on $250,000 bail.

Copies of his files, including the names of FBI agents who worked on Chinese espionage cases, found their way through Leung to Chinese intelligence officials, the government charged.

Smith, according to an FBI affidavit filed in support of the charges, knew since 1991 that Leung was providing classified intelligence materials to Chinese inteligence agencies but did nothing to stop her from gaining access to his files while visiting her San Marino home. Leung, a double agent who was paid $1.7 million by the FBI over a 20-year career, in the 1980's was also the lover of another former San Francisco FBI agent who did not know of her affair with Smith. He is now a director of security at Lawrence Livermore National Laboratories, and carried on an affair with Leung between 1991 and 1993 and resumed it in 1998 and 1999, the FBI addidavit revealed.

"It is a sad day for the FBI," agency director Robert S. Meuller said Wednesday. Brian Sun, an attorney representing Smith, called the former counterintelligence chief "a loyal, patriotic, and dedicated former agent" who was "very disappointed" by the government's charges.

Janet I. Levine and John D. Vande, lawyers representing Leung, said she was a patriotic American who risked her life on behalf of the United States, and predicted 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."

Katrina Leung contributed thousands of dollars at least indirectly to President George W. Bush and Republican candidates for Congress and other offices between 1998 and December 2002, the American Reporter has learned. She has long been a prominent figure in the Los Angeles Chinese American community.

Leung, the wife of Dr. Kam Leung, gave $2,000 in October 2002 to the right-wing American Success Political Action Committee, which gave $5,000 to then Gov. Bush and supported hundreds of Republican House and Senate candidates including Rep. Scott Armey of Texas, Rep. Henry Hyde (R-Ill), Arkansas's William Asa Hutchinson (R-Ark), former Rep. Elton Gallegly of Glendale, and Rep. Billy Tauzin (R-La.), the powerful chair of the House committee that oversees U.S. media conglomerates. According to news reports, a prominent Republican fundraiser had seen Leung dancing at the Bush Inaugural Ball in 2001. The American Success PAC in turn gave more than $400,000 to individual right wing Republican candidates in amounts ranging from $500 to $5,000 each.

Leung also supported the California Republican Party's "Team California" - which gave hundreds of thousands of dollars to candidates in Arizona and Colorado - and more than $1,557,000 in 1998 to a Chinese-American Republican candidate for Secretary of State, Matt Fong, Leung gave at least $1,000 in 2002 to Rep. David Dreier, the Orange County conservative who is a stalwart of President Bush's Iraq policy. The Team California PAC gave $16,000 to Dreier, who represents San Marino, in 1998 and 2002. Leung also gave $300 on March 28, 2001, and another $300 on December 9, 2002 to the National Republican Congressional Committee, according to records of the Federal Election Commission.

The FEC records indicate that Leung at least attempted to disguise some of her gifts, which had a preliminary total of $4,950, In each instance where she is listed as a contributor - to Dreier, Republican campaigns and Republican PACs - she gives a slightly different name for her employer. Her title was given as "Mr." and she was listed either as "self-employed" or a "consultant" or "business consultant" for Glishen Inc., Glismen Inc., and Gilishen Inc., all of San Marino - the small, conservative and very affluent community that was once listed as the wealthiest per capita in the nation.

As a spy, if indeed she was one, Leung was extremely well-connected to a nexus of America's most influential citizens and presumably enjoyed access to the leaders of some of its most sensitive industries and institutions.

She is listed as President of Glishen, Inc., on the Los Angeles World Affairs Council site, along with national figures such as former Carter administration Secretary of State Warren Christopher, Urban League president John Mack, Northrop Grumman Corp. chairman and CEO Kent Kresa, cable television magnate Jerrold Perenchio, and Los Angeles Times publisher John Puerner.

Other LAWAC directors include a who's who of aerospace industry executives, including Lockheed's fortmer chairman, Roy Anderson, Northrop's ex-CEO Tom Jones, Litton Industries founder Roy L. Ash, as well as the presidents of Cal Tech and the University of Southern California. Also on the board is housing magnate and mutual fund billionaire Eli Broad, who helped finance much of the 2002 anti-secession campaign and several recent school board campaigns.

Leung is pictured as an attractive young woman on the Internet at http://www.cis.umassd.edu/~gleung/nacaf/nb82.html in connection with a 1988 dinner she organized as a leader of the National Association of Chinese Americans (NACA), at which the "Dr. Y. T. Li gave the keynote speech suggesting an economic proposition toward China for U.S. President-elect George Bush to follow." That President Bush was the current President's father.

Among those in attendance at the 1988 affair at the Hyatt Wilshire were late Los Angeles Mayor Tom Bradley, members of the City Council, Chinese Ambassador to the United States Han Xu, two Nobel Prize winners, savings and loan magnate Howard Ahmanson, "two ministers who traveled from the PRC for the event," and hundreds of community leaders. Leung was described "as our capable officer" on the NACA site.

Leung also made contributions to Los Angeles Mayor James Hahn, his mayoral rival, real estate developer Steve Soboroff, and to the President of the Los Angeles City Council, the late John Ferraro, as well as Ferraro's successor, Councilman Tom LaBonge. She also made gifts of $500 each in 2001 and 2002 to a onetime Chinese-American mayoral candidate, Michael Woo, who was running for the Ferraro seat captured by LaBonge, who got $1,000 from Leung last year.

News reports said she also gave to two Republican U.S. Senate candidates and held a fundraiser at her elegant home in San Marino for Mayor Richard Riordan, the millionaire businessman who served two terms as mayor and was succeeded by Hahn in 2001.

Hahn aides recalled that she asked to be allowed to accompany the mayor's junket to China last year and was rebuffed, but managed to get a room at the same hotel and attended many of the functions arranged for the Hahn group in Beijing and other cities.

Copyright 2006 Joe Shea The American Reporter. All Rights Reserved.

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