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Prosecutors: N.Y. suspect spilled Russia spy details

Within hours of his capture, U.S. prosecutors say, Russian spy suspect Juan Lazaro admitted his name was an alias.

So who is he? Lazaro wasn't saying — not "even for his son," court papers say.

Lazaro's admission — and defiance — was revealed Thursday by federal prosecutors arguing against bail for him, his wife and another couple with children. The U.S. government claims those defendants and seven others were part of a spy ring on assignment to infiltrate America's cities and suburbs for the Russian intelligence service.

Their cover was so deep, "there is no inkling at all that their children who they live with have any idea their parents are Russian agents," Assistant U.S. Attorney Michael Farbiarz told U.S. Magistrate Judge Ronald L. Ellis.

Farbiarz warned that a powerful and sophisticated network of U.S.-based Russian agents was eager to help defendants in the spy ring flee the country if they were released on bail.

"There are a lot of Russian government officials in the United States who are actively assisting this conspiracy," he said.

The judge ruled that two defendant s, Cynthia and Richard Murphy, should remain in custody because there was no other way to guarantee they would not flee since it's unclear who they really are. But he set bail of $250,000 for Lazaro's wife, prominent Spanish-language journalist Vicky Pelaez, a U.S. citizen born in Peru, saying she did not appear to be trained as a spy. The judge required electronic monitoring and home detention and said she would not be freed before Tuesday, giving prosecutors time to appeal.

The judge ruled af ter Farbiarz said the evidence against the defendants continued to mount and the case was solid.

"Judge, this is a case where the evidence is extraordinarily s t r o n g , " Fa r b i a r z s a i d. "Prosecutors don't get cases like this very often."

The decision to set bail for one defendant came as police on the island nation of Cyprus searched airports, ports and yacht marinas to find a man who had been going by the name Christopher Metsos, who disappeared after a judge there freed him on $32,500 bail.

Metsos failed to show up Wednesday for a required meeting with police. He was charged by U.S. authorities with supplying funds to the other members of the spy ring.

A spokesman for the U.S. Embassy in Cyprus flatly denied local media reports today that Metsos was in U.S. custody at the embassy compound.

U. S. Embassy spokesman James Ellickson-Brown said

U. S. authorities have no knowledge of Metsos' whereabouts and the search effort for Metsos is entirely in the hands of Cypriot authorities.

In New York, prosecutors cited new evidence such as $80,000 in new $100 bills found in the safe-deposit box of the Murphys, who had been living in a Montclair, N.J., home paid for wi th money from the Russian intelligence service.

Other evidence included the discovery of multiple cellular phones and currencies in a safedeposit box and other "tools of the trade when they're in this business," Farbiarz said.

He said the spy ring consisted of people who for decades had worked to Americanize themselves while engaging in secret global travel with false passports, secret code words, fake names, invisible ink, encrypted radio transmissions and techniques so sophisticated that prosecutors chose not to describe them in court papers.

The prosecutors' claims were countered by lawyers for several defendants who said their clients were harmless and should be released on bail.

 

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