Architect with a good job. That whole exterior. Happily married and coaching his tenyearold sons Little League. But then something awful happened. He went blind, and that threatened to end his career. Is that different . Oh, yeah. Or did it . Im a kid again. Im relearning so much of architecture. It wasnt about what im missing in architecture, it was about what i had been missing in architecture. ticking we cannot explain what you are about to hear. Science doesnt know enough about the brain to make sense of alma. Alma deutscher is an accomplished british composer in the classical style. Shes a viuo and the violin. And she is 12yearsold. People compare you to mozart. What do you think of that . Of course, i love mozart, and i would have loved him to be my teacher. But i think i would prefer to be the first alma than to be a second mozart. ticking im steve kroft. Im lesley stahl. Im scott pelley. Im anderson cooper. Im bill whitaker. 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Thats pink power. Neutrogena®. And for body breakouts body clear®. And for body breakouts love them, hate their laundry, protection. Lysol laundry sanitizer kills 99. 9 of bacteria. Lysol. What it takes to protect. ® cooper Kevin Mallory was a down on his luck former clandestine case officer for the c. I. A. When he was approached by a man the department of justice believes was a chinese spy. Officials say mallory was a prime target for recruitment. He was out of work, three months behind on his mortgage, and thousands of dollars in debt. But as we first reported in december and as the chinese would discover, Kevin Mallory wasnt exactly james bond. The department of justice agreed to show us how they caught mr. Mallory and why they believe his recruitment by china is part of a massive clandestine campaign to steal not Just National security secrets from the u. S. Government, but industrial and technological secrets from american companies. This is what espionage looks like. The man standing on the right in the yellow shirt is Kevin Mallory, who once held a top secret security clearance while working for the c. I. A. And the Defense Intelligence agency. Footage from a surveillance camera at a virginia fed ex store in april 2017 caught him as he prepared to hand a clerk stacks of classified documents to be scanned onto an s. D. Card the kind that can be inserted into a mobile phone. Ryan gaynor so this is the rare moment, right, in an investigation in an espionage case, where we actually have video footage of the individual preparing the classified material for transmission to the foreign intelligence service. Cooper we watched the tape with ryan gaynor, the f. B. I. Supervisory special agent who investigated mallory, and jennifer gellie, who prosecuted the case against him for the National Security division of the department of justice. They say Kevin Mallory sent National Security secrets to a chinese spy on a covert communication device. Jennifer gellie so here you see him talking with the store clerk about the scanning job. And throughout this video, you see little pops of yellow little yellow pieces of paper that flash by when hes showing the documents. That was important for us, because the document that he successfully passed consisted of a type informatollowed two yellow sheets of paper with his handwriting on them. And here, you can see cooper so thats the those are the yellow sheets of paper . Gellie you can see the yellow sheets going through that scanning process. Cooper prosecutors say some of the information mallory sent could have revealed the identity of a couple who had secretly spied on china for the u. S. It was a very personal betrayal. Mallory had supervised the couple years before. He was betraying people. This is peoples lives at stake. Gellie correct. These were documents that specifically talked about human beings, whose lives could be in danger. Cooper if they had traveled to china, they could have been arrested. John demers at the time he gave the information to the chinese Intelligence Officer, he knew they were planning on traveling to china. Cooper john demers is the top official in charge of the department of justices National Security division, which helps guard the u. S. Against terrorism, cyberattacks, and espionage. Hes responsible for coordinating activities across Law Enforcement and u. S. Intelligence agencies. He says Kevin Mallorys recruitment is just one of many efforts by the Chinese Ministry of state security, or m. S. S. , to spy on the United States. What is m. S. S. . Demers so, m. S. S. Is the principal Intelligence Agency of the chinese government. And in rough terms, it is like the c. I. A. And the f. B. I. Put together. Their capabilities are world class. They have cyber capabilities, they have expertise in turning people into cooperators, and they have all of the tools and expertise of a very capable intelligence organization. Cooper john demers says Kevin Mallory hadnt worked for any u. S. Intelligence agency in five years, but he was still of interest to china. He spoke mandarin, was desperate for money, and had classified information he might be willing to sell. Demers youre looking for people who will be willing to work with you for one reason or another. You start very slowly. You start to see what information they are willing to share with you originally. Innocuous information. Then, something maybe slightly more sensitive, and so forth. And that relationship develops over time. Its a patient process. Cooper its a grooming of an intelligence asset. Demers its a grooming, and its a constant testing to see what the person is willing to do. Cooper the chinese didnt reach out to Kevin Mallory in a dark alley, like in a movie. They made contact with him like any job recruiter would. They sent him a message on the career networking site, linkedin. What could the chinese tell from reading his linkedin page . Gaynor when you look at this linkedin page, its very clear immediately that he worked in National Security, that he had the type of background that the Chinese Intelligence Services are most interested in cooper hes good at National Security, military, international relations, counterterrorism, security clearance, dispute resolution. This is a signpost to i was a former intelligence official. Gaynor and it led to what you would expect. Cooper mallory ended up in contact with this man, who called himself michael yang and claimed to be an employee at a chinese think tank. So hes a chinese Intelligence Officer . Gaynor we believe him to be a chinese Intelligence Officer. And more importantly, mr. Mallory, when meeting with him, believed him to be an Intelligence Officer. Cooper over the next several weeks, michael yang paid mallory 25,000 to come to shanghai twice, and mallory reached out to former colleagues at the c. I. A. Asking to be put in touch with people who had current intelligence on china. Prosecutors say his former colleagues grew suspicious and reported him to c. I. A. Security, putting him on the radar of Law Enforcement. When mallory returned from his second trip to china, he was stopped by customs at chicagos ohare airport. He had lied on this form about how much money he was carrying more than 16,000 in cash and agents discovered this box with a phone in it. Mallory claimed it was a gift for his wife, but it was actually a covert communication device that had been given to him by chinese intelligence. This looks just like a regular phone. What makes it a covert communication device . Gaynor so, its not so much the hardware. The phone itself had a unique piece of software installed on it, designed to allow secure communication, both in text and also the secure transmission of documents later. Cooper you might think a former c. I. A. Officer would be cautious about the texts he sends to a chinese spy, but Kevin Mallory was remarkably direct, complaining about the money he was paid and the risk he was taking. Your object is to gain information, he told michael yang, and my object is to be paid for it. I will destroy all electronic records after you confirm receipt, mallory wrote to yang. I already destroyed the paper records. I cannot keep these around. Too dangerous. At this point, all the risk is on me. Gellie so he says, im taking all the risk, but then he goes on, a few bubbles later, to actually try to transmit Additional Information to the chinese. Cooper but technology wasnt mallorys strong suit. He complained to michael yang that the phone wasnt working properly. This system sucks. Its too cumbersome, he wrote. I put all these messages, and then, and you cant read them because you are not logged in at the same time. Thats a poor system. At this point, prosecutors say, mallory was scared. Hed been stopped at customs, and he feared the c. I. A. And f. B. I. Were onto him. Prosecutors say he decided to come up with a cover story, and reached out to the c. I. A. , telling them he thought he was being recruited by chinese spies. The c. I. A. Called him in for an interview. Kevin mallory my judgement is, and we havent gone through this conversation, that these guys work for chinese intelligence. So my sense is that they were looking for government secrets. U. S. Government secrets, at some level. Cooper in this meeting, mallory admitted the phone was a covert communication device given to him by the chinese, but, prosecutors say, he lied about the classified documents hed already sent. Dorsey did you send them anything on that phone . Mallory i sent them some tests of some sort, just to see if i could do it right. And i couldnt figure it out. I messed that up. Gaynor hes trying to control the narrative. So what you have here likely is an attempt to steer the story, to explain away some of the more alerting pieces, while not admitting to the criminal acvity of proving the classified information to the foreign intelligence service. Gellie we now know, at this point in time, Kevin Mallory has successfully sent the classified table of contents, the classified white paper, and tried to send several other documents unsuccessfully. Cooper mallory offered to bring in the phone to be examined by the c. I. A. , confident that all his messages to michael yang had automatically been deleted. So, he believes everything hes sent has disappeared from the device. So thats why hes willing to bring the device in . Gaynor we have every reason to believe that he believed at the time that those communications would be gone. Cooper two weeks later, mallory arrived at a hotel room in ashburn, virginia for a second meeting with the c. I. A. When he got there, the f. B. I. Was waiting for him, along with a computer forensic examiner. He agreed to show them how the phone worked. Gaynor when he goes to demonstrate it, up on the screen where he expects to have his whole chat history basically deleted, up on the screen, comes some of the chat history. Cooper the f. B. I. Recorded the meeting. Mallory im, im surprised it kept this much. F. B. I. Agent so, you made a comment that you were surprised that there was this much there. Mallory right, because you because this, right because, in the past, maybe it was the screen size or something because some of it just disappeared. Cooper one of the most incriminating messages that appeared on the phone was mallory planning another trip to china. I can also come in the middle of june, he wrote. I can bring the remainder of the documents i have at that time. Gaynor from the f. B. I. Perspective, this is a Pivotal Moment in the investigation. Cooper four weeks later, the f. B. I. Arrested Kevin Mallory and searched his home. Hidden in the back of this closet in a junk drawer, agents discovered an s. D. Card wrapped in tinfoil, whad placed eight secret and top secret documents the same ones he scanned at that fed ex store in april. Aynor it is our belt it was his intention to take this s. D. Card to china to provide to them. Cooper does the mallory case fit a pattern that youre seeing coming from chinese intelligence . Demers yes. We currently have three pending cases against former Intelligence Officers, and theyre alleged to have been spying on behalf of the chinese. Cooper its hard to overstate how unusual it is to have three cases like this ongoing. Demers its not unusual. Its unprecedented. Bill evanina to me, its disappointing, and its really hurtful, i think, to everyone, to know that we still have people who are willing to betray the u. S. For a few dollars. Cooper bill evanina is director of the National Counterintelligence and security center, a division of the office of the director of national intelligence. He serves as the u. S. Governments top Counter Intelligence official. When it comes to espionage against the United States, does china pose the greatest threat, or russia . Evanina when it comes to espionage, china poses the greatest threat. And its not even close, ed to ia or iran any other country. And if you include economic espionage, industrial espionage, its not even in the same ballgame. Cooper when most people think of espionage, they think of somebody in a trench coat, trying to steal a state secret. Whats happening now with china, its not just about state secrets, its about technological secrets. Thats the prize that china wants. Evanina thats correct. Its trade secrets, proprietary data, intelligence, emerging technology, nanotechnology, hybrid, anything that they can see that is the future. Supercomputing, encryption. Those are the issues that they look at. And they have a prioritized schedule that they look at, and they send people forward to go collect that data. Cooper john demers, of the justice departments National Security division, says since 2011, more than 90 of the economic espionage cases they have charged have involved china, which has stolen secrets about everything from geneticallymodified rice seeds, to wind turbine technology. This is a Persistent Campaign youre seeing . Demers yes, very persistent, very sophisticated. Very wellresourced, very patient and very broad in scope. Cooper demers says chinese operatives have intensified their efforts on industries critical to chinese president xi jinpings made in china 2025 program, a tenyear plan to jump ahead of the United States in aerospace, automation, artificial intelligence, quantum computing, and other cutting edge industries. I think some people who see this are going to think, well, this is something the u. S. Must do as well. Demers the u. S. Intelligence community doesnt take trade secrets from Foreign Companies for the benefit of american companies. Cooper that doesnt happen . Demers this is not something that we do. Cooper as for former c. I. A. Officer Kevin Mallory, he continues to deny sending any classified information to the chinese. Last june, a jury in virginia found him guilty of conspiracy under the espionage act and lying to the f. B. I. In may, mallory was sentenced to 20 years in prison. ticking wit looks like jill heading offe on an adventure. 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