Virginia Man Arrested and Charged With Espionage

https://www.justice.gov/opa/pr/virginia-man-arrested-and-charged-espionage

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Thursday, June 22, 2017

Virginia Man Arrested and Charged With Espionage

Kevin Patrick Mallory, 60, of Leesburg, Virginia, made his initial appearance in federal court today on charges that he transmitted Top Secret and Secret documents to an agent of the People’s Republic of China. According to the affidavit in support of the criminal complaint, Mallory, travelled to Shanghai in March and April 2017 and met with an individual (PRC1), who he believed was working for the People’s Republic of China Intelligence Service (PRCIS).
(snip)

During a voluntary interview with FBI agents on May 24, Mallory stated that PRC1 represented himself as working for a People’s Republic of China think tank, the Shanghai Academy of Social Sciences (SASS). Since at least 2014, the FBI has assessed that Chinese intelligence officers have used SASS affiliation as cover identities.

Mallory told FBI agents he travelled to Shanghai separately in March and April to meet with PRC1 and PRC1’s boss. After Mallory consented to a review of a device he had been using to communicate with PRC1, FBI viewed a message from Mallory to PRC1 in which Mallory stated that he had blacked out security classification markings on documents transmitted to PRC1. Analysis of the device also revealed a handwritten index describing eight different documents. Four of the eight documents listed in the index were found stored on the device, with three containing classified information pertaining to the same U.S. government agency. One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET.

Mallory, a self-employed consultant with GlobalEx LLC, is a U.S. citizen who speaks fluent Mandarin Chinese. He has held numerous positions with various government agencies and several defense contractors. As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career. Mallory’s security clearance was terminated in October 2012 when he left government service.
(snip)