Poinbank Exchange|Former White House employee, CIA analyst accused of spying for South Korea, feds say

A former senior White House employee and Poinbank ExchangeCentral Intelligence Agency analyst is accused of working as an agent for South Korea and disclosing U.S. government secrets to that country's intelligence officers, according to federal prosecutors.

Sue Mi Terry, 54, allegedly "subverted foreign agent registration laws in order to provide South Korean intelligence officers with access, information, and advocacy," U.S. Attorney Damian Williams said Wednesday in a Justice Department press release.

She was arrested Tuesday and charged with one count of conspiracy to violate the Foreign Agents Registration Act (FARA), which carries a maximum sentence of five years in prison, and one count of failure to register under FARA, which carries a maximum sentence of five years in prison, according to federal prosecutors.

Lee Wolosky, Terry's defense attorney, emailed a statement to USA TODAY regarding the charges brought against his client, saying, "These allegations are unfounded and distort the work of a scholar and news analyst known for her independence and years of service to the United States."

"Dr. Terry has not held a security clearance for over a decade and her views on matters relating to the Korean peninsula have been consistent over many years," the statement continued. "In fact, she was a harsh critic of the South Korean government during times this indictment alleges that she was acting on its behalf.  Once the facts are made clear it will be evident the government made a significant mistake."

What did Sue Mi Terry receive for her alleged crimes?

The 31-page indictment filed in the Southern District of New York details how Terry not only provided confidential information, but she advocated for South Korean policies and enabled South Korean officials to gain access to U.S. government officials.

For payment, Terry would be given luxury goods, expensive dinners and more than $37,000 in funding for a public policy program concerning Korean affairs that she controlled, according to the indictment. Some of the gifted goods included a $2,845 Dolce & Gabbana coat, a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, the court document continued.

"Terry allegedly sold out her positions and influence to the South Korean government in return for luxury handbags, expensive meals, and thousands of dollars of funding for her public policy program," Williams said in the release.

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Who is Sue Mi Terry?

Terry served in various positions in the U.S. government from about 2001 to 2011, including as an analyst on East Asian issues for the CIA and oceanic affairs for the White House National Security Council, the indictment says.

Since departing the government, Terry has worked at academic institutions in New York City and Washington, D.C. She remained in the public eye by making media appearances, writing published articles and hosting conferences as a "policy expert specializing in South Korea, North Korea, and various regional issues impacting Asia," according to the indictment.

Terry has also testified before Congress on at least three different occasions concerning the U.S. government’s policy toward Korea. During these hearings, she signed a document declaring that she was not a foreign agent, the federal indictment says.

She is also accused of attempting to connect South Korean intelligence agents in 2016 with members of then-incoming President Donald Trump's administration, according to the charging document.

What secrets did Sue Mi Terry allegedly divulge?

Terry was a "valuable source of information" for the South Korean National Intelligence Service (NIS), the indictment says. The court document details how in June 2002, she gave handwritten notes to her "handler" regarding an off-the-record group meeting she had just had with the Secretary of State Colin Powell about the government's policy toward North Korea.

The handler was in the car that picked Terry up from the private meeting and took photographs of her notes while they were sitting in the vehicle, according to the indictment.

Another instance mentioned in the indictment involved a happy hour Terry hosted for congressional staff in April 2023. Not only did the South Korea NIS pay for the event, Terry's handler also attended, posed as a diplomat and mingled with staffers without revealing himself as a spy, the indictment alleges.

Terry was also paid by South Korean officials to write articles in both the U.S. and Korean press "converting positions and phrases provided by the (South Korean) government," according to federal prosecutors.

“Compromising national security endangers every American by weakening our defenses and putting lives at risk," FBI Acting Assistant Director in Charge Christie Curtis said in the release.