October 20, 2009 4:02 PM

Pentagon Scientist Charged with Espionage

(CBS/AP)  Prosecutors say a former government scientist who worked on the cutting edge of moon exploration has been caught trying to sell classified secrets to an FBI agent posing as an Israeli intelligence agent.

Stewart David Nozette, who has worked for the White House, the Pentagon and the Department of Energy, and who is credited with discovering evidence of water on the moon, was arrested Monday on espionage charges. He is due to appear in federal court Tuesday.

The Justice Department said Nozette, 52, of suburban Chevy Chase, Maryland, of attempting to communicate, deliver and transmit classified information to an individual he thought was an Israeli intelligence officer. That officer was really an undercover FBI agent.

Nozette held special security clearances in the 1990s, and had access to U.S. satellite information, and critical nuclear weapons design information clearances.

The complaint does not allege that the government of Israel or anyone acting on its behalf violated U.S. law. In Jerusalem, Israeli government officials had no immediate comment.

Nozette was arrested Monday by FBI agents. He is expected to make his initial appearance in federal court in Washington on Tuesday.

Investigators worked into the night, removing evidence from Nozette's home in suburban Chevy Chase, Md., reports CBS News Senior White House correspondent Bill Plante.

"It's surreal, but now that I think about it he was an odd guy," said neighbor Beverly Wong. "He never really interacted with any of the neighbors; he would come out in his bathrobe."

She said Nozette's reputation among his neighbors did not go much further than that he was a rocket scientist. "No one seemed to know that much about him. But I had no reason to think that he was involved in any espionage or anything, you know, about being a spy."

"NASA does not comment on open cases in the criminal justice system," agency spokesman Michael Cabbage said in a written statement to CBS News reporter Peter King.

In an affidavit supporting the complaint that was unsealed Monday, the following sequence of events was alleged:

September 3: FBI agent Leslie Martell said that Nozette received a telephone call from an individual purporting to be an Israeli intelligence officer. Nozette agreed to meet with the agent later that day at a hotel in Washington, and in the subsequent meeting the two discussed Nozette's willingness to work for Israeli intelligence.

Nozette allegedly informed the agent that he had, in the past, held top security clearances and had access to U.S. satellite information, the affidavit said.

Nozette also was alleged to have said he would be willing to answer questions about this information in exchange for money. The affidavit said the agent explained that the Israeli intelligence agency, Mossad, would arrange for a communication system so Nozette could pass on information in a post office box.

Nozette agreed to provide regular, continuing information and asked for an Israeli passport, the government alleged.

The affidavit then alleged this sequence of events:

September 4: Nozette and the agent met again in the same hotel. The scientist allegedly said that while he no longer had legal access to any classified information at a U.S. government facility, he could, nonetheless, recall classified information by memory. Nozette allegedly asked when he could expect to receive his first payment, saying he preferred cash amounts "under ten thousand" so he would not have to report it. (U.S. anti-money laundering laws require that all transactions of $10,000 or more must be reported to the Internal Revenue Service, the tax collection agency.)

Nozette allegedly told the agent, "Well, I should tell you my first need is that they should figure out how to pay me ... . They don't expect me to do this for free."

September 10: Undercover FBI agents left a letter in the designated post office box, asking Nozette to answer a list of questions about U.S. satellite information. The agents provided a $2,000 cash payment. Serial numbers of the bills were recorded.

September 16: Nozette was captured on videotape leaving a manila envelope in the post office box. The next day, agents retrieved the sealed envelope and found, among other things, a one-page document containing answers to the questions and an encrypted computer thumb drive.

One answer contained information, classified as secret, which concerned capabilities of a prototype overhead collection system.

September 17: Agents left a second letter in the post office box with another list of questions about U.S. satellite information. The FBI also left a cash payment of $9,000. Nozette allegedly retrieved the questions and the money the same day.

October 1: Nozette was videotaped leaving a manila envelope in the post office box. FBI agents retrieved it and found a second set of answers. The responses contained information classified as both top secret and secret, involving U.S. satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information, and major elements of defense strategy.

Nozette had worked in varying jobs for the Department of Energy, the National Aeronautics and Space Administration, and in the National Space Council in the president's office in 1989 and 1990.

He developed the Clementine bistatic radar experiment that purportedly discovered water on the south pole of the moon. He worked from approximately 1990 to 1999 at the Department of Energy's Lawrence Livermore National Laboratory in California, where he designed highly advanced technology.

At the Department of Energy, Nozette held a special security clearance equivalent to the Defense Department top secret and "critical nuclear weapon design information" clearances. Department of Energy clearances apply to access to information specifically relating to atomic or nuclear-related materials.

Nozette also held top offices at the Alliance for Competitive Technology, a nonprofit corporation that he organized in March 1990. Between January 2000 and February 2006, Nozette, through his company, had several agreements to develop advanced technology for the U.S. government.

He performed some of the research and development at the U.S. Naval Research Laboratory in Washington, the Defense Advanced Research Projects Agency in Arlington, Virginia, and at NASA's Goddard Space Flight Center in Greenbelt, Md.

© 2009 CBS Interactive Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.
Add a Comment See all 47 Comments
by Overruled1 October 22, 2009 9:41 PM EDT
I posted a link showing George Bush caught outright lieing about his knowledge of the WTC Terrorist attack and was banned.
Sorry for breaking your rules...I just felt obligated and remind those out there conspiracy in our government has always been the way of the law here.
I did have in fact 3 postings of which any of could have gotten me in the chit list of cbs.
1st was that link...
2nd was my opinion that Israel is simply overstaying its welcome to our treasury in the way of $15,000,000 daily in official aid which is a full 1/3 of the national budget.
3rd was my insinuation that there should be a modern day equivalent to the Inquistion.

My apologies to cbs again for breaking the rules and speaking my mind.
I will be in the future building my own site that I will oversee to assure the public have an open forum without censorship....good or bad...this country assures freedom of thought and speech of which includes "forums"
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by joeljkp October 20, 2009 1:54 PM EDT
Note that man in the second picture is NOT Nozette. Notice here[1] that Nozette is hidden in the picture.

[1]http://online.wsj.com/article/SB125600137727795549.html
Reply to this comment
by hungry1968-16 October 20, 2009 8:35 AM EDT
by endurorob_5 October 20, 2009 7:51 AM EDT
You assume that Israel is a "friend". I assume that Israel does what is best for Israel and would turn on us in an instnant.






And have turned their backs on us numerous times over the years. Israel is an ally with America, ONLY because we keep their "foreign aid" flowing.
Reply to this comment
by presjfk October 20, 2009 9:36 AM EDT
USS Liberty, look it up.
by Mortarman29 October 20, 2009 10:35 AM EDT
Hey, Japan is an ally. Pearl harbor, look it up.

And the U.K. is an ally. The Revolutionary War and War of 1812. Look them up.
by Turbidite October 20, 2009 8:22 AM EDT
The story doesn't make a lot of sense when you take into account that Nozette was alrady consulting for, and under contract to IAI (Israel Aerospace Industries), Israel's largest exporter of defense and aerospace technology (Ha'aretz, 2/10/2009). It would seem that they would have been happy to pay Nozette for his spying activities. And why did it take nine days for CBS to release this news after it had been published in Israel?
Reply to this comment
by wyodutch October 20, 2009 8:09 AM EDT
For God's sakes... don't criticize anything Israel does... the mouth-breathers will tag you as an "anti-semite".
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The Israel-Firsters believe America is nothing but a fat cash-cow for Israel to leech off of and steal information from.
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by Mortarman29 October 20, 2009 10:40 AM EDT
Looks like the bigots have rolled out of bed today.
by RachelonCBS October 20, 2009 7:52 AM EDT
Keep up the good work FBI!
Reply to this comment
by bradkt1 October 20, 2009 7:40 AM EDT
Allies and enemies regularly spy on each other. The real issue to me is what about the scenario where an adversary is posing as an Isralei spy and is duping those who think that they are helping Israel into passing classified information to them...the so-called "false flag" operation? I believe that the Russians did this during the Cold War and don't doubt that other nations would try to do so at the drop of a hat.
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by endurorob_5 October 20, 2009 7:51 AM EDT
You assume that Israel is a "friend". I assume that Israel does what is best for Israel and would turn on us in an instnant.
by imprisoncheney October 20, 2009 7:37 AM EDT
With "friends" like Israel, who needs enemies?

The Israelis seem to be following the same model of behavior as the WS banks -- give me X amount of money so I can urinate all over you!

Why do we funnel billions of dollars to Israel every year so they can steal from us? This is crazy.
Reply to this comment
by mnbrant October 20, 2009 5:48 AM EDT
Finally theres Zazi's father whos gettig 8 years for telling his kid to get a lawyer and lying about it. I cannot begin to comprehend how many millenia this guys going to be in jail if the old man gets 8 years.
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by mnbrant October 20, 2009 5:34 AM EDT
and don't forget the terrorist guy who exploded himself by bombing Uranus. What are these spys and terrorists coming from. Seems like out of the woodwork or something
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