Responsible for uncovering spies. I got a call when i was in los angeles. We want you to come back and run this group. When i went over to the Counterespionage Group i asked if i could bring an assistant with me, somebody from the fbi and john i had work would previously in laufros angeles. The first fbi agents inserted in like cover in the cia was a singular opportunity. I tend to value those more and ive never regretted it. Most of the people in the cia did not know i was there looking for a spy. Did you have a cia badge or cia badge. So they didnt know you were from the fbi . Within a week everybody in that building knew i was from the fbi. They didnt particularly care for me being there but they definitely knew who i was. Humana Medicare Advantage members. No, its this john smith. Who we paired with a humana team member to help address his own specific health needs. At humana, we take a personal approach to your health, to provide care thats just as unique as you are. No matter what your name is. Has grown into an enterprise. Thats why i switched to the spark cash card from capital one. Now, im earning unlimited 2 cash back on every purchase i make. Everything. Whats in your wallet . With steak and shrimp . More shrimp. And you know what goes great with that shrimp . You guessed it. More shrimp. Steak and unlimited shrimp, starting at 15. 99. Only at outback. When it comes to reducing the evsugar in your familys dietom. Coke, dr. Pepper, and pepsi hear you
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james was not involved in that went bad. Somebody was trying to steal secret information and give it to the russians. If theres anymore we have to find them. In the summer of 1986 the fbi team had had already widdled down their cast of possible candidates and one of those was Jim Nicholson. Jim nicholson was working as a single dad and had custody of his three children. For jim i think the divorce Prec Precipitated financial strains that werent there before, a single father having to pay alimony, together with his expensive tastes, taylored suits as opposed to off the rack. It looked like he might be interested in making more money. Its one thing to go after a spy with one course in counterintelligence. Its another thing to know
youre going up with the senior varsity. He was an extremely well trained spy with a great deal of previous experience. We know if we make one mistake with this guy hes gone. Certain opportunities came up. One was jims announced vacation to singapore. So the discussion then came down with director of Central Intelligence do we let him go . Dont we let him go . Decision was made that we would inform the Singapore Intelligence Service and Jim Nicholson would go to singapore. When he got off the plane in singapore hes under surveillance. And he almost immediately begins what we call dry cleaning. Surveillance detection runs designed to pick up anybody trying to surveill or follow you. Thats where the term dry cleaning comes from. Youre cleansing yourself of all these unwanted attachments. Going down a set of stairs and immediately turning around and going back up so if anyones
following you youre likely to run right into them. Looking in the pane glass windows of Large Department stores. Hes looking at the reflections in the glass. But doing Surveillance Detection runs is not what one usually does on a vacation. But youre still only suspecting him. You havent made your case yet. But on the third day of surveillance, the Perverbial Black Limo pulls up to the curb and jim hops in and our Surveillance Team looks down to the license plate. Russian embassy. Once he went in that embassy, he was a bad guy. There was no suspect kbanymore. He is a subject of an fbi investigation. So after identifying jim in singapore as our spy. The next challenge is where can
we position him to do the least amount of damage . The decision was made to put him as a branch chief in the counterterrorism center. Given the environment at the time, pre9 11, thats where we could most effectively detain him. Youre letting him know he can do what he wants because nobodys watching me. So its finally in june 1996 he began his new duties as a branch chief in counterterrorism. Now you have to collect the evidence and present it for an arrest warrant. We have to monitor his activities 24 hours a day. That means every time he steps foot outside his house, surveillance. Anytime hes in the house, we have to know who hes talking to. We had to get a human source in his office so that we know every time he gets up from his desk, he walks out, our guy goes out
with him. 1996 i get a cable in the field that says youre assigned to human resources. It was something i didnt want to do and clearly thought i had pissed my division chief off. I was in over seas and then came back. I did not want be to in human resources. Because thats like The Kiss Of Death for a case officer. So sitting in my brand new desk in h. R. And one morning i got a call from the front offices and the boss called up and said dont tell anybody where youre going, speak to nobody, get up in front of my desk right now. I said okay. Sat down, chief explained to him we want to put you on a very special assignment, but were not going to tell you what its about. And if its no, your career is over. That was implied. There was a long pause where i didnt say anything and neither did he. The only variable i have in the room was there was a man i didnt recognize. I said can i ask one question . He said you can ask, i dont know if ill answer. And introduced himself as the highest ranking fbi agent assigned inside cia. My mind was racing at that point. He said you got to give me an answer now. If you say no, go back to h. R. , if you say yes, well tell you what this is all about and i say yeah, ill take it. Ill do it. Once he accepted the assignment. I said go outside now, dont stop, dont say anything to anybody and somebody will meet you. And i said yes, sir and left the building. And they took me to a safe house in Northern Virginia. They said we have a spy inside the building and we want you to help us catch him. Initially it was like getting kicked in the stomach. Another major espionage case inside of cia. It was a devastating piece of information. We had to have someone as close up as possible to nicholson and John Hopefully was going to be that candidate but you Couldnt Thrust John On Jim or jim would be suspicious. You had to do it in a way that jim would think its his choice, his selection that brought john in the game. The first step was get him to pick you and that job was the deputy chief of the unit run by nicholson. The interview wasnt particularly long but i got along well with him. It was clear he didnt have a lot of good things to say about the structure of the leadership in the agency. My views of h. R. Were a good laughter in the interview and he understood completely that i
thought i was going to die if i stayed there. Whenever you have an interaction with anybody thats a planned activity. You always come back and reflect on what you did and i came away with the opinion that it went pretty good. Jim did an excellent job as a manager choosing the best person for that job and ultimately he chose mcguire. Unbeknownst to jim, he was a spy and probably the last person he wanted to have next to him. And ended up sitting in the next next to nicholsons and then it was game on. Its a big, big risk. Now youre going outside your perimeter. This is the person close to say nicholson. Youre going to lunch, going to talk about cases. So that person could do something stupid and nicholson would be alerted somethings wrong here. Basically you have a onestrike scenario. If you mess up or give away something, you could derail the
entire investigation. But we make more than our name suggests. Were an organic tea company. A premium juice company. A Coconut Water company. Weve got drinks for long days. For birthdays. For turning over new leaves. And we make them for every moment in every corner of the country. We are the cocacola company, and were proud to offer so much more. You know win control . Be this guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. And jumps again to over 150 after a year. Noooo. And ends up costing over 3500 bucks over 2 years. Youre cleaning that up. Dont get Caught Off Guard by directv. Touchdown. Get the best with xfinity. I was brought in as an undercover guy. My job was to catch him doing an Espionage Act that would directly tie him to the russians. So in the spring of 1996 i
started as nicholsons deputy in the counterterrorism center. At that time radical islamic terrorism was on the rise. So there was a lot of real work stuff going on that you had to focus on. They were looking at critical players who eventually became known post 9 11. In the middle of all that youre trying to catch your boss compiling information hes going to give to the russians. To have a human source in touch with him every day is invaluable. Getting to know him was part of the exercise. I spent a lot of time going to lunch with him, Drinking Beer with him. My goal with the investigation was to immerse myself in him but it was mentally draining every day. Because i describe him as a flawed personality, a flawed man. Over time that became very parent that he had a special view of himself. A ruthless narcissistic guy that didnt care about anybody. And youre with him all the time. There was no retreat from it. Jim nicholson is the most formidable opponent you could possibly go up against as a counterespionage agent because hes so well trained in the craft. And mcguire provided Personality Assessment back to the fbi. And john was very, very good at it. And even with john, as close as john was to him, thats still not giving us the exact intell and insights to what is he doing minute by minute, second by second. Thats why we knew we had to get a fiberopticing camera in his office. Youve seen the Tile Ceilings with the thousands of pin holes in them. Hes no bigger than one of those pin holes. At one point nicholson got up on his chair and was rooting around in the ceiling. He was reaching up into the ceiling and pushing tiles. John, move your but. Hes moving tiles. So i just barged into his office and he was standing on the chair and i said what the hell are you doing in here . And he said i thought something was loose. I was just taking a look. I said okay. He didnt find anything, he didnt disrupt anything so there was no compromise and everybody breathed a huge sigh of relief. Next thing we needed was to get access to his van in the parking lot. Thats a big thing. He was like a Northern Virginia soccer mom. He was playing a role. He didnt want to attract any attention to himself. A single dad driving a mini van with three kids. Invisible guy in Northern Virginia. We managed to manipulate him
in a way he would go on a business trip, leave his van as opposed to parking in his driveway at home. Then of course we didnt want to get careless or lazy. Theres still eyes on the langly compound. So we did it really, really late at night. We had to pick up the van, physically pick it up, fork lift it because he may have checked the Odometer Reading on it and the fbi went through the whole van. Some people say isnt that a little extreme putting it on a flat bed so the odometer wasnt changed . Not if you were trained like he was trained. He knows all these techniques. You underestimate him at your own paeril is what we felt. They went through that van and they got significant data, intelligence data. He hadnt left his computer in there, everything. We were able to image that
laptop and do a quick initial assessment as to what was on there and we found the Tasking Order from his russian handler and thats even before we did the really indepth analysis we were able to do in the off site. We discovered he had given a true name and identity of the spies that went through the training program. That was a line that really frosted me at that point. Because thats a Mercenary Activity that i dont think any other spy has ever done. The question at that point is do you have enough for resting conviction . We didnt have that at that time. I wanted to shoot him at his desk, truth be told. But i wanted to catch him. In october we had the first major break in the case. I had gone off campus and had
lunch with nicholson and nicholson was Driving Iratically and looked like he was doing a Surveillance Detection run and said were going to a post office. Theres unusual stamps here and we went out to the post office, he bought them and we proceeded back to the building from there. And for me, looking at it as a case officer i thought hes going to mail something overseas. Going to the post office to get a special stamp, that would be a clue that would have alerted the fbi right away that somethings unusual happening. John gave us the heads up we needed to watch him like a hawk. We summoned the resources and we did just that. They bet heavy on what i told them, they covered him relentlessly and caught him mailing a post card to the russians. They processed his post card as evidence and then put the mail back in the box and sent it on its way. The post card indicating his intent to travel and meet with his russian handlers. Hello old friend. I hope. It is possible youll be my guest for a ski holiday this year on 2324 november. A bit early but it would fit my schedule nicely. Hope are the same and can accept my invitation. Best regards, neville r. Scratchy. It could be code name for him. Theres a variety of things it could mean. Thats a communication between him and the russians saying im ready for my next meet. Its a signal hes doing something. Once we saw the contents of that letter, we knew we had to bring this thing down. What really put the nails in that final coffin was prior to his trip we noticed Jim Photographing classified documents to pass along to his russian handlers. We knew he was taking pictures of classified documents. He was storing up and getting ready for his trip. It was like cramming for an
exam. We knew if he was leaving country for a meeting with the russians, he would have to take his compromising material and intelligence with him. We were confident he would have classified material in his person or bags in some fashion, we just had to find it. Weve got enough to convict him of espionage and arrest him. Im the one clocking in. When youre clocking out. Sensing your every move and automatically adjusting to help you stay effortlessly comfortable. There. I can also help with this. Does your bed do that . Oh. I dont actually talk. Though im smart enough to. Im the new sleep number 360 smart bed. Lets meet at a sleep number store. So wouldnt it be perfect if. There was a single site. Where you could find the. Right hotel for you at the best price . There is. Because tripadvisor now compares. Prices from over 200 booking. Sites. To save you up to 30 . On the hotel you want. Trust this birds words. Tripadvisor. The latest reviews. The lowest prices. Without pg es assistance, without their training our collaboration with pg e is centered around public safety. We could not do our mission to keep our Community Safe. Anytime we are responding to a structure fire, one of the first calls you make is for pg e for gas and electric safety. Its my job to make sure that they have the training that they need to make the scene safe for themselves and for the public. Its handson training actually turning valves, turning systems off, looking at different wire systems all that training is crucial to keeping our Community Safe and our firefighters safe. Together, were building a better california. They caught Jim Nicholson mailing a post card to the russians. Thats a communication saying im ready for my next meet. A signal hes doing something. What really put the nails in the final coffin was we witnessed Jim Photographing classified documents to pass along to his russian handlers. We were very confident he would have classified material in his person or bags in some fashion. We just had to find it. We have enough to convict him of espionage and arrest him. November Dulles International airport, the fbi finally brought this matter to conclusion. They placed themselves throughout the area in undercover positions surrounding the entire plane. We had agents as bag handlers. There were fbi agents everywhere. He would go through security so you were sure he had nothing on
him that could be a weapon. He was also through security and committed himself to leaving the country to prove he was inroute to meet the russians. On the tarmac at dulles and let you know that his life as a spy had now ended. His entire life collapsed around him in a five second window where he realized at that moment my life is over. The look on his face is the only honest look i saw on his face the whole time i knew the man. This arrest demonstrates that Te Counterintelligence reforms that have been put into place in the wake of Aldridge Ames have taken hold and led to our success in catching the spy, nicholson. Jim finally reached pleato with the prosecution. And he was at the trial table as he read his statement. We locked eye contact briefly and he turned away but his face
looked ashen when he turned away and thats the last time i ever laid eyes on the guy. He was sentenced to 23 years and at his request transferred to a prison in oregon so he could be close to his children and his family. Why was he spying for the russians . Thats a good question but i dont know. He claims he needed the money. But i think thats just an excuse. I think he viewed himself as a master spice that could operate with impunity in our face. Its like pursuing adventure all the time in the foreign service. Wherever you go youll find Something Interesting to do. He asked for it. He chose poorly and he paid for it and hell pay for it until he draws his last breath. In the summer of 2007 i got
called down to the Special Agent in charges office Out Of The Blue and asked if i was interested in working on a very important case that would ultimately be very high profile and so of course the next logical question from my perspective was well, what is it . And the answer was you got to say yes before well tell you what the is that youre going to be working on. That was called into my Supervisors Office in eugene, oregon. He said you wanted me to close or reassign every case that i had. Which was very unusual and considering i had some significant cases at the time. So i drove the 110 miles to portland. We learned that Jim Nicholsons son was suspected of working with his father and making contact with the russians. I was familiar with james
nicholson, his being the highest ranking cia officer ever convicted of espionage. He was 12 years old when his dad went to jail in 1996. At that point we needed Additional Information to solidly make the criminal case. Even though he was in prison, he was very high up in the ranks and knew quite a bit about the innerworkings of the agency. You never know for sure what information he could still be giving them. We needed to find out what it was that was being provided by Jim Nicholson to the russians. So we went back and looked at the Telephone Calls he had made to try to gleen information that might be useful for the case. You have a prepaid call from this is daddy. An inmate i thought id call you and see what kind of hours youre keeping these days. Oh, pretty much the same i
guess. Yeah, im on the road heading back now. Okay. Did everything go okay . Yeah, everything went real well. Got mail for about 5k. So business is picking up, huh . Yeah, sure is. Oh, excellent. I mean there was odd phone calls of him making a sale for 5k and nathan was barely treading water. He wauorked at pizza hut and lid in a small apartment near springfield. We started pealing the onion about nathan and what he might be doing for his father involving russian intelligence. Nathan had been going to visit jim since he was 12 years old and he idolized his dad from those contacts. He seemed to be a very dutiful son, really cared about his family, his siblings, his
religious convictions. Seemed like a pretty nice person trying to make his own way since he was probably 12 years old. He got injured and his life has been a series of set backs. I think nathan was vulnerable at that point to looking for some direction and dad had a plan in mind. I do know that he used scripture to try to influence and manipulate his boy in a way that, in my view, was not positive. Hey, i got a verse for you. Its isaiah 45 3. Isaiah 45 3 . Yeah, its really going to be a good one. And i will give you treasures hidden in the dark ntsz, secret riches. I will do this so you know i am the lord, the one who calls you by name. Yep. Wow. I like that. Yeah. I like that. I claimed it for you and me. Absolutely. You know basically was telling nathan he was a loyal soldier and were doing gods work. Its a calling. I dont think jim would make father of the year. Far from it. We were eager to start monitoring nathans Telephone Calls, his travel in his car, all the kinds of ways that he might communicate with the russians to find out what was it that he could be giving them that might be of value. We were able to monitor his computer use and we were able to give a gps on his car. The gps was put on the fifth of december, which was a friday. But was not until the following monday until they went to test
the gps for the first time that it went perfectly. But the problem was it was at Portland International airport. It was a surprise, not a pleasant surprise. So immediately he was going to meet with the russians, figure out what his itinerary was in terms of when he would be returning. The decision was made to intercept him when he came back into the country. O an enterpris. Thats why i switched to the spark cash card from capital one. Now, im earning unlimited 2 cash back on every purchase i make. Everything. Whats in your wallet . Own specific health needs. At humana, we take a personal approach to your health, to provide care thats just as unique as you are. No matter what your name is. With incredible flavors, like new Nashville Hot shrimp crispy, spicy, and drizzled with sweet amber honey. Plus the delicious classics you love, like garlic shrimp scampi. Try all the shrimp you want, however you want em. But hurry, it ends soon. Interviewing nathan about the purpose of his trip, fbi agents were copying all the paperwork that nathan had brought back with him. And during that search we found a number of very inhad criminating items that really broke the case wide open. They found some money that he brought back. I think it was over 7 or 8 thousand on him. And they found a notebook that had a lot of very interesting information in it. The notebook was pretty much the jackpot. It confirmed he had addresses of the Russian Embassy in mexico city and in lima, peru. The russians were always interested in finding out how James Nicholson got caught first go around. Just like any spy agency, theyre concerned with moles in their midst. He used his son as a courier to curry questions from jim and to them back to him in prison for him he received compensation and we found information about the mexican Yahoo Account with a password in it and they used codewards in the communication. The russians were dick and he was nancy. This had a Treasure Trove of information that alowed us to predict what was going to happen from that point forward. I think he waned to do such a good job that he kept detailed notes. He was not very good spy. After this all happened, they let him go on his way and went home. We had discussions back at
head quarters as to where we wanted to go with this case. The evidence we got from the Customs Search In Houston was very suspicious. But in and of itself was still circumstantial. So a decision was made we were going to let this play out because we needed to develop Additional Information to solidly make the criminal case. In october 2008, nathan logged on to the Yahoo Mexican account using the password and left a message using code names to confirm another meeting for our December 10th meeting. It was like hello, nancy, its good to hear from you. My Brother Eugene is well. The russians were nancy. Nathan was dick and jim was eugene. The meeting for cyprus was on. Prior to his trip to cyprus,
his father which when i saw it immediately jumped out at me as something that could not have been designed for Nathan Pfsz Viewing but had to have been for the russians. It was all sorts of information about jim and his children. Jim goes into his eldest sons background who was in the air force. Nicholson whos already in the military. He was trying to throw a carrot to the russians like i have this other son. Maybe down the road this will be of some value. I look at jims letters and go you sob. You did this to nathan and now youre putting this out there. You could be putting your oldest son and family in jeopardy. Nathan travelled to cyprus in
december of 2008 for the purpose of meeting with the russians while there. He was supposed meet them at tgi fridays on the evening of wednesday, december the 8th. The russians met him at that location and he was ultimately paid 12 thousand. And he provided the russians with a letter that had been given to him by jim that had all the information about jim and his cypress. It had all the information about jim. We knew we had infer evidence to charge the father, charge the son. It was time to bring it to a close. We shouldnt vanquish you to another dimension ok, guys, hear me out. Switching to geico could save you. Hundreds on Car Insurance. Huh, he does make a point. I do like to save money. Catch you on the flip, suckas geico. Because saving fifteen percent or more on Car Insurance is always a great answer. Believe the health we aof our Water Sourcesany is essential to the health of our communities. Which is why were helping to replenish the mighty rio grande as well as over 30 watersheds across the country. Were also leading Water Projects in more than 100 communities. And for every drop we use. Were working to give one back. Because our products rely on the same thing as we all do. Clean water. And we care about it like our business depends on it. You know win control . Be this guy. Check it out selfappendectomy oh, thats really attached. Thats why i rent from national. Where i get the control to choose any car in the aisle i want, not some car they choose for me. Which makes me one smooth operator. Ah still a little tender. vo go national. Go like a pro. I enjoy the fresher things in life. O. Fresh towels. Fresh soaps. And of course, tripadvisors freshest, lowest. Prices. So if youre anything like me. Youll want to check tripadvisor. We now instantly compare prices. From over 200 booking sites. To find you the lowest price. On the hotel you want. Go on, try something fresh. Tripadvisor. The latest reviews. The lowest prices. Well give you a chance to set this right. We said lying to the fbi is a crime, and we know quite a bit about your travel. And for the next hour or two he pretty much confessed everything and gave a written confession. But he didnt actually get arrested until a couple weeks later. We wanted to see what he would say post. Interview while we still had electronic coverage of him, his conversations with other people showing guilty knowledge, guilty intebt. And one of the conversations we overheard after he was interviewed by the fbi was with his sister star. Nathan, are you okay . Im okay. Are you okay . Im good. Whats up with the fbi . Well, its kind of a long story to be honest with you. You know the fbi interviewed everybody. Yeah, i know. But what was going on is i was trance porting some information. Uhhuh. And, you know, getting paid for it. Okay. And thats what the whole deal was about. So what was the information for . Well, it was for the russians. Dude, seriously. You just sound kind of like what daddy did. Yeah, it was exactly what daddy did, and he acknowledged hed sort of been living allie for the last year and a half. And i went out to talk to Jim Nicholson in the prison on december 15th. And i showed him a postcard that had written on it welcome to cyprus. And i explained to him at that point that we knew what hbd going on. And he said, well, it sounds like what youre trying to do is put nathan in jail. So before i say anything, i think im going to need to talk to an attorney. As a parent myself, i would have
thought hed been ready to do almost anything to try and get nathan out of a jam. But he didnt help his son. In January Nathan was arrested and eventually released on bail. But i think he spent about 72 days in jail. Jim gave him the idea he had not done anything wrong right from the get go. And so being held in jail, it kind of helped him to the conclusion that maybe his dad hadnt been as good a friend as he always made himself out to be. I had myself believe that i wasnt doing anything wrong. Heres my hero. He was trying to help me out. And i still wrestle with the idea that he may or may not have manipulated me. Nathan received five years probation from the judge, and jim got an additional eightyear sentence and was ultimately sent to Super Maximum in florence,
colorado. Jim nicholson basically said it was just a way to help out the family, but i dont think so. I think he just fooled himself. I mean jim fancied himself as being quite the spymaster. But how good a spy could jim have been, hes the only guy i know that got caught twice. Were you surprised jim used his son to contact the russians . Surprised, not really. Further disappointed, yeah. Somewhat shocked from the perspective of the father, that one father could do this to his son. But thats what desperate people do. He loved his kids, but he loved himselfself more. Hes an extreme narsest. I think you have to put it that way. For a father to do this to his family, i cant believe it. What makes somebody do that and then use his son to continue the operation, thats deplorable. His whole Belief System has
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