Russian International Money Launderer Arrested for Illicitly Procuring Large Quantities of U.S.-Manufactured Dual-Use Military Grade Microelectronics for Russian Elites
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).
The announcement was made by Dana J. Boente, Acting Assistant Attorney General for National Security and the U.S. Attorney for the Eastern District of Virginia; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office.
“The conduct alleged in this complaint is serious, and these charges should send a message to anyone who would consider violating the public’s trust and compromising our national security by disclosing classified information,” said Mr. Boente.
“Kevin Mallory was previously entrusted with Top Secret clearance and therefore had access to classified information, which he allegedly shared and planned to continue sharing with representatives of a foreign government,” said Mr. Vale. “Furthermore, he allegedly misled investigators in a voluntary interview about sharing of this classified information. The FBI will continue to investigate those individuals who put our national security at risk through unauthorized disclosures of information.”
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.
Mallory was arrested this morning and is charged with gathering or delivering defense information to aid a foreign government, and making material false statements. If convicted, Mallory faces a maximum sentence of life in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorney John T. Gibbs for the Eastern District of Virginia are prosecuting the case.