Spy case: Leak derails probe

The Pentagon official under suspicion of turning over classified information to Israel began cooperating with federal agents several weeks ago and was preparing to lead the authorities to contacts inside the Israeli government when the case became public last week, officials said on Sunday.

The disclosure of the inquiry late on Friday by CBS News revealed what had been a year-long covert FBI investigation, according to the officials who said that reports about the inquiry compromised investigative steps. As a result, several areas of the case remain murky, officials said. One uncertainty is the legal status of Lawrence A. Franklin, the lower-level Pentagon policy analyst who reportedly passed the Israelis a draft presidential policy directive related to Iran.

No arrest is believed to be imminent, in part because prosecutors have not yet clearly established if Franklin broke the law. But the officials said there was evidence that he turned the classified material over to officials at the American Israel Public Affairs Committee, a pro-Israel lobbying group. Officials of the group are suspected of then passing the information to Israeli intelligence. The lobbying group and Israel have denied engaging in any wrongdoing. Neither Franklin nor his lawyer could be reached. 8212; NYT