Harold J. Nicholson United States v. Harold J. Nicholson As more fully described below, Harold James Nicholson, an American citizen and employee of the Central Intelligence Agency (CIA), has been acting clandestinely, corruptly and illegally as an agent of the Russian Federation Foreign Intelligence Service, Sluzhba Vneshney Razvedki Rossii, commonly referred to within the U.S. intelligence community as SVRR. The SVRR is the direct successor to the Committee for State Security of the Union of Soviet Socialist Republics (hereafter USSR), known as the KGB. By his actions, Nicholson has committed violations of 18 U.S.C. 794(a) and (c), that is, with reason to believe that it would be used to the injury of the United States and the advantage of a foreign nation, he has unlawfully and knowingly conspired to communicate, transmit and deliver to representatives of a foreign government, specifically the Russian Federation, information relating to the national defense of the United States. The investigation reveals that the Russian Federation has paid Nicholson over $100,000 since June, 1994 for his unlawful acts. Information in this affidavit is based on my personal knowledge and on information provided to me by other law enforcement officers. This affidavit also relies on information provided by the CIA, which has cooperated with the investigation. This affidavit is not intended to be an exhaustive summary of the investigation against Nicholson, but is for the purpose of setting out probable cause in support of: a. A complaint charging Harold J. Nicholson; with a violation of title 18, United States code section 794(c) (conspiracy to commit espionage); b. An arrest warrant for Harold J. Nicholson; c. A search warrant for Nicholson's residence at 5764 Burke Towne Court, Burke, Virginia in the Eastern District of Virginia; d. A search warrant for Nicholson's workspace, located in room 6E291 1, Old Hq. Building, CIA Headquarters, Langley, Va; e. A search warrant for Nicholson's vehicle, a 1994 Chevrolet Lionina sports van, Virginia license plate 8888BAT, f A search warrant for a safe deposit box in the name of Harold J. Nicholson, Box #417, located at Selco Credit Union in Springfield, Oregon. g. A search warrant for any luggage that Nicholson may be carrying or may check at Dulles Airport on November 16, 1996, the day of his arrest. Background Harold James Nicholson, was born on November 17, 1950, in Woodburn, Oregon. He is divorced, and has three children. Nicholson entered on duty as an employee of the CIA on October 20, 1980. According to CIA records, Nicholson took the oath of office on January 26, 1982, where he stated that "I will support and defend the Constitution of the United States against all enemies foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. so help me God." I have reviewed Nicholson's CIA personnel and security files, These files reveal that throughout Nicholson's employment with the CIA, he has held a "Top Secret" security clearance, and had regular, frequent access to sensitive classified information. I have also reviewed a document signed by Harold J. Nicholson entitled "sensitive compartmented information nondisclosure agreement." In this document, Nicholson acknowledges that he has been granted access to sensitive compartmented information (SCI) as part of his employment, that any unauthorized disclosure of such highly classified information is a violation of federal criminal law, and that any unauthorized disclosure of SCI information could irreparably injure the United States or provide an advantage to a foreign nation. In this signed document, Nicholson agrees that he will never divulge classified information to anyone not authorized to receive it without prior written authorization from the United States. In his career with the CIA, Nicholson has been assigned duties throughout the world. He has worked for the CIA as an operations officer specializing in intelligence operations against foreign intelligence services, including the intelligence services of the USSR and later, the Russian Federation. Specifically, from 1982-85, Nicholson worked for the CIA in Manila, where he had sustained, direct contacts with targeted Soviet officials. Nicholson worked for the CIA in Bangkok from 1985-87, and in Tokyo from 1987-89. From 1990-92, Nicholson was the CIA Chief of Station in Bucharest, Romania. From 1992 until 1994, Nicholson was the Deputy Chief of Station/operations officer in Kuala Lumpur, Malaysia, where, among other duties, he met with and targeted for recruitment Russian intelligence officers. From 1994 until July, 1996, Nicholson worked as an instructor at the classified CIA special training center ("STC") in the Eastern District of Virginia, teaching CIA trainees intelligence tradecraft. In July, 1996, Nicholson was assigned as a branch chief in the Counterterrorism Center, Directorate of Operations, at CIA headquarters in Langley, Virginia. this position carries a pay grade GS- 15, and his current salary is approximately $73,000; it is the highest pay grade Nicholson has held during his CIA employment. According to CIA records, Nicholson owns and currently resides in a townhouse at 5674 Burke Towne Court, Burke, Virginia, in the Eastern District of Virginia, Virginia department of motor vehicle records show that a Chevrolet Lumina sport van, Virginia plate no. 8888BAT, is registered to Harold J. Nicholson. The Investigation-Polygraphs On or about October 16, 1995, and October 20, 1995, Nicholson underwent polygraph examinations administered by CIA polygraphers as pan of his routine security update. A computerized review of the examination results indicated a .97 (out of 1.0) probability of deception on two questions: (1) are you hiding involvement with a foreign intelligence service? and (2) have you had unauthorized contact with a foreign intelligence service? During one the examinations, a CIA polygrapher deemed Nicholson's response "inconclusive" to the following question: "are you concealing contact with any foreign nationals"? On or about December 4, 1995, Nicholson underwent a third polygraph examination administered by a CIA polygrapher. A computerized review of the examination revealed an .88 probability of deception on the following questions: (1) since 1990, have you had contact with a foreign intelligence service that you are trying to hide from the CIA? and (2) are you trying to hide any contact with a foreign intelligence service since 1990? The CIA examiner noted that Nicholson appeared to be trying to manipulate the test by taking deep breaths on the control questions, which stopped after a verbal warning. By reviewing CIA records and Nicholson's frequent flyer records and financial records from 1994 through early 1996, the FBI uncovered a pattern of twice yearly foreign travel, followed by unexplained deposits and payments to Nicholson's accounts. June 1994 Meeting with Russian and Unexplained Money According to CIA records, Nicholson was assigned to Kuala Lumpur, Malaysia during 1992-94 as Deputy Chief of Station/operations officer. CIA records show that Nicholson met with an officer of the Russian Intelligence Service SVRR in Kuala Lumpur on four occasions during Nicholson's final months there; three of these meetings took place in the Russian Embassy in Kuala Lumpur, These meetings were authorized by the CIA and reported by Nicholson. On June 30, 1994, one day after Nicholson's last reported meeting with the SVRR officer, financial records show that $12,000 was wired into Nicholson's savings account #0000261759/01 at Selco Credit Union, Eugene, Oregon. Nicholson left Kuala Lumpur on July 5, 1994, and returned to the United States. 'Me FBI has been unable to trace the source of this money to any legitimate source of income. December 1994 Foreign Travel and Unexplained Money According to Nicholson's travel records, Nicholson left the United States on personal travel on or about December 9, 1994. According to an itinerary he provided to the CIA, Nicholson planned to travel to London, New Delhi, Bangkok and Kuala Lumpur. Nicholson left Kuala Lumpur on December 28, 1994, returning to the United States on December 30, 1994. According to financial records, after living in Kuala Lumpur, Nicholson made a $9,000 wire deposit from Malaysia to his Selco checking account #000026-1759/ 10, and a $6,000 cash payment to his American Express account #3728-128689-71001, Almost immediately after returning to the U.S., on December 31, 1994, Nicholson entered the Selco Credit Union in Eugene, Oregon, and, using 130 $100 bills, paid off a $3,(X)O loan at Selco (loan #86, Volkswagen), and paid $10,019.35 toward his Selco Visa account. 'Me FBI has been unable to trace the source of the money in these transactions to any legitimate source of income. June/July 1995 Foreign Travel and Unexplained Money CIA leave records show that Nicholson took annual leave from June 15, 1995 through July 14, 1995. According to an itinerary Nicholson provided to the CIA, Nicholson left the United States on June 16, 1995, for Singapore, then traveled to Kuala Lumpur, where he stayed from June 17 through July 1, 1995. Nicholson returned to the United States through Hong Kong on July 1, 1995. Analysis of financial records created during and shortly after the trip show the following financial transactions totaling $23,815.21 involving accounts in the name of Harold J. Nicholson and joint accounts he holds with his children. December 1995 Foreign T)ravel and Unexplained Money According to CIA leave records and Nicholson's travel records, Nicholson left the United States for personal navel on December 18, 1995, and arrived in Bangkok, Thailand on December 20, 1995.