Katrina Leung, who boasted of having close ties to officials in both Beijing and Southern California, was indicted by a federal grand jury on five counts of illegally obtaining and copying documents related to national defense.
Leung, 42, was a familiar figure in the Los Angeles-area's Chinese-American community and frequently associated with local politicians. At the same time, she was acting as an "asset" for the FBI, passing on items of interest culled from trips to China and contacts with officials in the Beijing government.
Leung was a source of information for the FBI for nearly 20 years, during which time she took the codename "Parlor Maid" and allegedly carried on a long-term romantic relationship with James Smith, an FBI counter-intelligence agent who was Leung's handler.
Smith, who retired in 2000, was indicted Wednesday in Los Angeles on wire fraud and gross negligence charges for allegedly carelessly handling sensitive FBI documents between 1993 and 2002 by leaving them in his unlocked briefcase during his visits to Leung's San Marino home. Leung allegedly was able to surreptitiously copy the papers when Smith wasn't looking.
The documents in question included a 1997 FBI "electronic communication" regarding Chinese fugitives, a report on the 1998 "Royal Tourist" espionage investigation, and five pages of transcripts of conversations between "Lao" and "Mao," two individuals believed to be Leung and her intelligence contact in China.
Both Smith and Leung were arrested April 9 and will both be arraigned Monday in Los Angeles federal court. Leung has remained in custody as a flight risk while Smith posted $250,000 bond.
If convicted of all charges, Leung faces 50 years in prison while the 59-year-old Smith faces 40 years.
The "honest services" wire fraud charges against Smith stem from his alleged failure to tell his superiors about his romantic affair with Leung, which prosecutors contend amounted to withholding his services from the FBI.
The Los Angeles Times reported Thursday that a Justice Department source noted that Smith was not charged with espionage-related crimes, which could indicate federal prosecutors were giving Smith the opportunity to strike a plea bargain.
"These kinds of violations are not that significant when you look at the transgressions he committed in providing classified information," said the official, who was not involved in the investigation.
Copyright 2003 by United Press International.
All rights reserved.
© 2026 Newsmax. All rights reserved.