Michael Isikoff and Mark Hosenball report in Newsweek:

A former FBI agent who pleaded guilty Tuesday to fraudulently obtaining U.S. citizenship and then improperly accessing sensitive computer information about Hizbollah was working until about a year ago as a CIA spy assigned to Middle East operations, Newsweek has learned.

The stunning case of Nada Nadim Prouty, a 37-year-old Lebanese native who is related to a suspected Hizbollah money launderer, appears to raise a nightmarish question for U.S. intelligence agencies: Could one of the world’s most notorious terrorist groups have infiltrated the U.S. government?

“I’m beginning to think it’s possible that Hizbollah put a mole in our government,” said Richard Clarke, the former White House counter-terrorism chief under Presidents Clinton and, until 2002, Bush. “It’s mind-blowing.”

A U.S. official familiar with the case said Tuesday that the government’s investigation has uncovered no evidence so far that Prouty, who was employed by the CIA until last week, had compromised any undercover operations or passed along sensitive intelligence information to Hizbollah operatives. After joining the CIA in June 2003, Prouty was an undercover officer for the agency’s National Clandestine Service, the espionage division, working on Middle East-related cases. She was reassigned to a less sensitive position about a year ago, after she first came under suspicion, officials said.

Read the whole thing. It does not sound good at all.