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ABC News . com
August 24, 2001

Espionage Arrest
Retired Air Force Sergeant Accused of Spying

Aug. 24 - A former Air Force serviceman working at a government intelligence agency has been arrested on charges of conspiracy to commit espionage. Retired Master Sgt. Brian Regan, 38, of Bowie, Md., was arrested by the FBI last night at Dulles International Airport as he was passing through a security checkpoint to take a Lufthansa flight to Zurich, Switzerland, via Frankfurt, Germany, according to a statement released by the Justice Department. His carry-on baggage was searched at the airport. Agents found names and addresses in a European country hidden in his shoe. His automobile, home, and office computer also were searched. Officials have not yet said what nation Regan was allegedly conspiring to spy for, though they did say it was neither Russia nor a U.S. ally. "We are not able at this time to disclose the names of the countries involved nor have we been able to complete a damage assessment in this particular case," said U.S. Attorney Ken Melson. Regan was arraigned today in Virginia. He will be held in custody at least until a bond hearing on Wednesday.

Access to Classified Information

Regan retired from the Air Force in August 2000. He has since been employed with the government contractor TRW, posted at the National Reconnaissance Office in Chantilly, Va., where he had access to classified information, according to the Justice Department.

The NRO designs, builds and operates the nation's reconnaissance satellites, providing intelligence to the CIA, the Pentagon, and other government agencies. Regan worked in the signals intelligence directorate of NRO, which is responsible for satellites that intercept foreign communications for the military and intelligence agencies.

Regan is suspected of disclosing numerous documents classified "secret," which is information that by definition can cause "serious damage to national security," according to a government affidavit released today. An NRO source tells ABCNEWS, that Regan, like other people at the NRO, "had access to everything" but the most highly classified programs at NRO.

Whoops!

The FBI had been watching him since June, but the affidavit did not disclose how the U.S. government was tipped off to him other than to say some evidence was obtained from "reliable source information."

"'Reliable source' has historically been a term of art used in reference to signals intelligence," said John Pike of GlobalSecurity.org. "It appears that sort of their routine broad sweep of their monitoring international e-mail traffic picked him up.

The evidence showed a number of defense-related U.S. government documents had been passed to a foreign country, including electronic images taken presumably from satellites, and from classified portions of a CIA report.

An investigation suggested Regan had accessed those documents from his NRO office computer. Surveillance also allegedly found Regan illicitly photocopying documents at his NRO office, making plans for trips to Europe, and accessing a secret e-mail account during visits to county public libraries. During one visit, Regan left without logging off the computer, enabling the FBI access to every place online he had visited, including a diplomatic office of another foreign country, according to court papers.

Regan created his secret e-mail account the same month he retired from the Air Force after 20 years of service, which ended with an assignment at NRO, according to the affidavit. Regan was in debt to the tune of $53,000, the affidavit said. Regan's case continues to be investigated by the Washington Field Office of the FBI.

Other Recent Convictions

Regan's arrest comes six months after that of former FBI counter-espionage agent Robert Hanssen. Last month, Hanssen pleaded guilty to spying for Moscow, after striking a plea deal that will spare him a possible death sentence and prevent national security secrets from being spilled in court. He was arrested in February.

In March, U.S. officials announced the expulsion of 50 Russian diplomats, six of whom were believed involved in Hanssen's activities. Moscow followed up by expelling four U.S. diplomats and saying another 46 would be asked to leave by the summer.

In June, former Army intelligence Col. George Trofimoff, was convicted of spying for the Soviet Union during the Cold War.


- ABCNEWS' Pierre Thomas, Beverley Lumpkin and Barbara Starr and ABCNEWS.com's David Ruppe contributed to this report.