-Caveat Lector-   <A HREF="http://www.ctrl.org/">
</A> -Cui Bono?-

February 14, 2000

                    Justice official not
                    prosecuted in leak

                    By Bill Gertz
                    THE WASHINGTON TIMES


                         The Justice Department did not prosecute the
                    former head of its intelligence division despite his
                    admission to investigators that he disclosed classified
                    information, The Washington Times has learned.

                         Richard Scruggs, a friend of Attorney General
                    Janet Reno's, who brought him to Washington,
                    provided secret information to two reporters about
                    an electronic eavesdropping FBI operation against
                    the Japanese group Aum Shin Rikyo in 1995,
                    according to Justice Department officials familiar with
                    the case.

                         Justice Department officials disclosed some
                    aspects of the investigation into unauthorized
                    disclosure on condition of anonymity. It is the first
                    time information has been disclosed from the secret
                    court set up under the 1979 Foreign Intelligence
                    Surveillance Act.

                         The Justice Department's downplaying of the
                    Scruggs findings is similar to the CIA's limited
                    response to former director John Deutch, who was
                    caught mishandling classified documents but not
                    prosecuted.
                         In both cases, government officials have charged
                    that security infractions were covered up to protect
                    senior personnel.

                         Mr. Scruggs, currently the chief of the public
                    corruption section for the U.S. Attorney's Office in
                    southern Florida, said in an interview with The Times
                    that he "indirectly confirmed" the classified
                    information presented to him by the two reporters.

                         He denied being the original source for
                    information on the FBI surveillance of Aum Shin
                    Rikyo obtained by reporters Jim McGee and Brian
                    Duffy and disclosed in their book "Main Justice."

                         The investigation was launched following
                    publication of a book on the Justice Department and
                    an excerpt that appeared in the Sunday magazine of
                    The Washington Post on June 23, 1996.

                         Myron Marlin, Miss Reno's spokesman, said in
                    an interview: "Because of the Privacy Act we are not
                    in a position to acknowledge the [Office of
                    Professional Responsibility] investigation, but in such
                    investigations, when the department determines the
                    appropriate disciplinary action, it does not consider
                    the relations someone has with the attorney general."

                         Mr. Duffy declined to comment on the matter and
                    said he was unaware of the probe of Mr. Scruggs.
                    Mr. McGee could not be reached for comment.

                         Mr. Scruggs worked with Miss Reno when she
                    was a prosecutor in Florida and was offered a job on
                    her Justice Department staff in the early 1990s. He
                    was placed in charge of writing the 350-page "after
                    action report" on the Justice Department's handling of
                    the Branch Davidian standoff. The report was
                    submitted in October 1993, six months after the
                    incident.

                         The Waco matter is currently being investigated
                    again by a special team of investigators headed by
                    former Sen. John C. Danforth. That probe was
                    called after new information surfaced last year
                    questioning the role of FBI agents at the site during a
                    51-day siege.

                         Some officials suggested Mr. Scruggs was not
                    punished for disclosing intelligence because of his
                    friendship with Miss Reno and because he helped
                    protect her from criticism after the Waco affair.

                         Mr. Scruggs also was singled out for criticism in a
                    recent internal Justice Department report on the
                    department's mishandling of the case of fired Los
                    Alamos scientist Wen Ho Lee, who is suspected of
                    passing nuclear weapons secrets to China. The
                    report by Justice official Randy Bellows criticized
                    Mr. Scruggs for his role in setting the department's
                    intelligence policy, including the decision not to seek
                    a court order allowing the FBI to place Mr. Lee
                    under surveillance early in the espionage
                    investigation.

                         One former U.S. government official said Mr.
                    Scruggs' treatment showed the department covered
                    up security infractions by senior officials, but
                    aggressively pursued similar misconduct for
                    lower-ranking officials. Numerous FBI investigations
                    have been ordered by the Justice Department into
                    other leaks of classified information.

                         "Here you have an attorney general that is so
                    concerned about unauthorized disclosures and made
                    decisions on such prominent people as John Deutch,
                    but allowed a close aide to go undisciplined in an
                    unauthorized disclosure he admitted to and the guy
                    still retains his clearance," the former official said.

                         CIA Director George Tenet, who is in charge of
                    protecting all secrets, was never notified of the leak
                    investigation, the officials said. The committees of
                    Congress with oversight responsibility for the
                    intelligence community also were not informed.

                         The reporters' book revealed that the FBI and
                    Justice Department were at odds over how quickly
                    to install electronic eavesdropping devices in the
                    offices of Aum Shin Rikyo in New York shortly after
                    the group's poison gas attack in a Tokyo subway.

                         The surveillance and break-in at the group's New
                    York offices required approval by the secret court
                    set up under the 1979 Foreign Intelligence
                    Surveillance Act to authorize searches and
                    eavesdropping in counterspy and counter-terrorism
                    cases.

                         According to the book, Mr. Scruggs delayed
                    approval for the electronic bugging because of a lack
                    of evidence. The holdup angered James Kallstrom,
                    director of the FBI's New York office.

                         Mr. Scruggs said the only security infraction was
                    that he "corrected" information for the reporters.

                         "They were writing a book and erroneous
                    information was provided to them and I corrected
                    the record," Mr. Scruggs said in a telephone
                    interview. He said he immediately notified the Justice
                    Department's Office of Professional Responsibility,
                    which investigates internal wrongdoing, of the
                    infraction. "I turned myself in," he said.

                         Mr. Scruggs said he received a letter of
                    reprimand as a result of the investigation. However,
                    his security clearance was not revoked or suspended
                    and he said he still retains a "top secret" security
                    clearance.

                         Mr. Scruggs said he was assigned to "shadow"
                    the two reporters during their work on the book and
                    that the department's cooperation was approved by
                    Miss Reno.

                         Mr. Scruggs also said the probe was not "a leak
                    investigation."

                         However, other officials familiar with the case
                    said it was. One official close to the investigation said
                    Mr. Scruggs was the original source for the
                    intelligence material contained in the book and
                    admitted it during the subsequent investigation by the
                    Office of Professional Responsibility.

                         "He said that he had done it and that he was
                    sorry," this official said.

                         Justice officials said Miss Reno recused herself
                    from the investigation of Mr. Scruggs because of
                    their past association and to avoid influencing the
                    probe.

                         Steve Colgate, an assistant attorney general in
                    charge of administration, was asked to oversee the
                    leak investigation. In an interview, Mr. Colgate said
                    he could not comment on the investigation or its
                    outcome because of the Privacy Act.



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