What Richardson didn’t know at the time was that the Justice Department and CIA were themselves investigating Deutch. Justice sources tell NEWSWEEK that when Deutch was CIA director, he repeatedly mishandled classified information, in violation of the agency’s well-known security protocols. The spymaster routinely took his work home with him, these sources say, removing highly sensitive intelligence materials from CIA headquarters and accessing them on his unsecured personal computer–even though he had a secure CIA computer in the house. Deutch, now a Washington consultant, declined to comment, as did his lawyers. The Justice Department, which investigated the case for more than a year, decided not to press criminal charges, and has referred the matter back to the CIA. Officials close to the case say that the CIA’s inspector general is preparing a “scathing” report about Deutch’s alleged security breaches, and the agency is considering whether to revoke his high-level security clearances.
Deutch’s troubles began days after he stepped down as CIA chief in December 1996. Agency technicians went to his house on a routine mission: to ensure that Deutch, who stayed on briefly as a consultant, was using the CIA’s computer and his personal computer appropriately. To their astonishment, the technicians reportedly discovered 31 secret files on his personal computer. The documents apparently included intelligence on the 1996 terrorist attack on Khobar Towers in Saudi Arabia, reports on Iraq–even a memo Deutch had written to President Clinton.
Investigators say the Internet-connected computer was potentially vulnerable to hackers. The matter was turned over to CIA investigators, and later the Justice Department–and congressional intelligence committees–were notified. Even so, while the investigation was underway Deutch was reappointed to a federal panel that studies how to combat the proliferation of weapons of mass destruction and given top security clearances. For months, the inquiry into Deutch languished. Some insiders grumbled the probe was deliberately stalled to avoid revelations that would embarrass the intelligence community. That all changed last month, when Richardson tapped Deutch to help sort out the Los Alamos troubles. A few days after the appointment, Deutch quietly withdrew from the job, citing “other commitments.”
Why would the man tasked with gathering the nation’s secrets seemingly handle them so casually? Some officials attribute it to arrogance; others to absent-mindedness. One source close to the probe is less generous. “It’s one thing to be sloppy,” the source says. “This was reckless.”
