Deutch Faces New Security Inquiry, Documents Show

John M. Deutch, who has admitted mishandling classified information while serving as director of the CIA, is now under investigation for similar security violations when he previously held high-level posts in the Defense Department, according to confidential documents and officials familiar with the case.

Deutch allegedly used unsecured computers at home and his America Online account to access classified defense information in the early to mid-1990s, the documents, compiled as part of a Defense Department probe, show. The alleged violations occurred before and after Deutch issued a February 1995 memo reminding Defense Department employees that only “properly reviewed and cleared” information should be placed on computer systems accessible to the public.

“We find his conduct in this regard particularly egregious in light of existing DOD policy directives addressing the safeguarding of classified information,” an internal Defense Department memo said. “This situation was exacerbated because Dr. Deutch, while serving as the [deputy secretary of Defense], declined departmental requests that he allow security systems to be installed in his residence.

“The evidence we obtained clearly establishes that Dr. Deutch failed to follow even the most basic security precautions.”

Deutch’s attorney, Terrence O’Donnell, did not return a telephone call for comment Friday.

Deutch served as Defense undersecretary for acquisitions and technology from April 1993 to March 1994, when he became deputy Defense secretary, a job he held until he was appointed CIA director in 1995. He left the CIA in December 1996.

Two days after Deutch retired from the CIA, agency computer personnel discovered classified information stored on government computers at Deutch’s home. After a series of investigations, Deutch admitted the security breach, apologized for violating CIA policy and was stripped of his security clearances.

Initially, the Justice Department decided not to prosecute Deutch. But earlier this year, Atty. Gen. Janet Reno decided to review the matter after criticism that Deutch had received much more favorable treatment than former Los Alamos National Laboratory scientist Wen Ho Lee.

Sen. Charles E. Grassley (R-Iowa), a member of the Judiciary Committee, confirmed the probe had been widened and challenged the Justice Department to take a hard look at Deutch’s alleged repeat violations.

“This is now a pattern,” Grassley said. “Evidently, Mr. Deutch is a congenital downloader of classified information. It will be interesting to see how the Justice Department deals with this case, especially in light of the Wen Ho Lee case.”