Tangled U.S. Objectives Bring Down Spy Firm

On April 22, Noorzai made calls to his family in Pakistan, telling his mother that he was fine but still busy with his work for the U.S. government, a DEA affidavit states.

The next day, he was told that he was under arrest.

Noorzai's lawyers argued that the government lied and used duplicity to make its case. The government lawyers argued that the capture was legal. The judge agreed.

Before the trial, court documents show, Tandy had nominated the FBI agent who helped Rosetta for an award for his role in making the Noorzai case. Instead, the Justice Department's Office of the Inspector General began investigating the agent and another FBI employee for their involvement with Rosetta.

The company's financial records, intelligence reports and e-mails were subpoenaed. The inspector general learned that the FBI employee had obtained information from FBI databases and sent it to Rosetta, in part to "provide information to placate investors," according to one affidavit. That employee also received a house-hunting trip "in anticipation of being hired by Rosetta," the affidavit stated.

The inspector general's office would not release its report, citing a policy protecting privacy rights of "lower-level" employees.

Rosetta never got any reward for Noorzai's capture. Fisher said the company was turned down because Mike A. was also working all along for the U.S. government.

Staff researcher Julie Tate contributed to this report.