A career FBI agent is charged with spying for the Russians. Ray Suarez leads a discussion.

RAY SUAREZ: The arrest of a 27- year FBI Veteran took place Sunday in this park in Washington's suburbs. 56-year-old Robert Hanssen was detained after he allegedly made a drop of classified data for Russian agents. Hanssen lives in Vienna, Virginia, with his wife and six children. While at the FBI, he was assigned to spy on Russian government outposts in the United States. He's only the third FBI agent ever accused of spying. While FBI Agents searched Hanssen's home, neighbors expressed shock and disbelief.

NANCY CULLEN: I called four women this morning after I saw it on television really early and the same reaction, no way, not Bob. This isn't Bob.

RAY SUAREZ: Hanssen was arraigned in a federal court this morning. He was charged with espionage and conspiracy to commit espionage. He could face the death penalty if convicted and be fined up to $2.8 million. The chiefs of the Justice Department, the FBI and the CIA appeared at a news conference this afternoon.

JOHN ASHCROFT: The arrest of Robert Hanssen for espionage should remind us all... every American should know that our nation, our free society is an international target in a dangerous world. In fact, the espionage operations designed to steal vital secrets of the United States are as intense today as they have ever been.

RAY SUAREZ: FBI Director Louis Freeh, who led the investigation with the CIA, The State Department and the U.S. Attorney's office, provided most of the details.

LOUIS FREEH: The complaint alleges that Hanssen conspired to, and did commit espionage for Russia and the former Soviet Union. The actions alleged date back as far as 1985, and with the possible exception of several years in the 1990s, continued until his arrest on Sunday. It is alleged that Hanssen provided to the former Soviet Union, and subsequently to Russia, substantial volumes of highly classified information that he acquired during the course of his job responsibilities in counterintelligence. In return, he received large sums of money and other remuneration, including diamonds. The complaint alleges that he received over $600,000 in cash. The full extent of the damage done is yet unknown because no accurate damage assessment could be done during the course of the covert investigation without jeopardizing it. We believe, however, that it was exceptionally grave. The criminal conduct alleged represents the most traitorous actions imaginable against a country governed by the rule of law.

RAY SUAREZ: Freeh described what he called Hanssen's obsession with secrecy.

LOUIS FREEH: Hanssen, using his training and experience to protect himself from discovery by the FBI, never met face-to-face with his Russian handlers, never revealed to them his true identity, or even where he worked. He constantly checked FBI records for signs that he and the drop sites he were using were being investigated. He refused any foreign travel to meet with the Russians, and even declined to use any of their tradecraft. Hanssen never displayed outward signs that he was receiving large amounts of unexplained cash. He was, after all, a trained counterintelligence specialist. For these reasons, the FBI learned of his true identity long before the Russians. They are learning of it today.

REPORTER: Director, in all due respect, how can you call this a counterintelligence success when you've had a spy working inside the FBI for over 15 years without being detected?

LOUIS FREEH: The reason I call it a success is that as an operation and as an investigation, it is an immense success. To conduct this investigation securely, clandestinely, without any leaks, and to do it to the point where we could catch red-handed an experienced intelligence officer laying down classified documents for his handlers, also intercept $50,000 in cash, which the intelligence officers were providing for him, in the business of counterintelligence, I think, by any expert, would be adjudged a huge success. That does not, of course, answer the question as to why someone for 15 years can successfully operate.

RAY SUAREZ: Freeh was asked if this spying was a holdover from the Cold War, or an ongoing problem.

LOUIS FREEH: You cannot simply say that this was a artifact or a residual of the Cold War. The activity obviously continued beyond that. And as late as Sunday, there was clearly an intent to exchange $50,000 in cash for very highly classified and very damaging information from the FBI. So I think that intelligence and counterintelligence are with us and will be with us for some time.

RAY SUAREZ: Former CIA and FBI Director William Webster will conduct a full review of counterintelligence procedures at the FBI.