A MAN who “dreamt about being like James Bond” has been found guilty of attempting to assist Russian intelligence operatives in a sophisticated MI5 undercover operation that exposed his willingness to betray national security for “easy money”.
Howard Phillips, 65, from Harlow, Essex, was convicted at Winchester Crown Court of breaching the National Security Act after offering to provide personal information about former Defence Secretary Sir Grant Shapps to what he believed were Russian agents. The divorced father-of-four shook his head silently in the dock as the jury delivered their unanimous verdict after four hours of deliberation.
The former City worker had handed over Shapps’s home address and landline telephone number during meetings with undercover MI5 officers posing as Russian intelligence operatives called “Sasha” and “Dima. Phillips told the fake agents he could “move undetected and travel anywhere at any time” and “avoid suspicion” in documents saved on a USB drive.
Financial Desperation Drove Espionage Attempt
Jocelyn Ledward KC, prosecuting, told the court Phillips was seeking “interesting and exciting work for easy money” as he was “struggling financially” after retiring at 59. The court heard his bank balance had plummeted from £25,126.09 in April 2023 to just £374.48 by May 2024.
Phillips had become an insolvency practitioner in 1986 and worked for Bond Partners in the City before becoming self-employed in 2011. He later worked as a manager in the charity sector before moving to GDPR compliance in “semi-retirement” in 2018.
I was avidly seeking employment but none was forthcoming,” Phillips told the court, explaining he had sent out hundreds of CVs and applied online for numerous positions.
Bizarre Letters to Hollywood Stars
In a desperate bid for work, Phillips penned a series of increasingly fanciful letters to Conservative Party ministers, offering advice on influencing the electorate. He also wrote to Hollywood actors including Tom Cruise and Jennifer Aniston, asking to meet and discuss breaking into the movie business.
The defendant’s ex-wife, Amanda Phillips, revealed during the trial that he “would dream about being like James Bond” and watched films about MI5 and MI6 as he was “infatuated with it.
She told the court she was aware Phillips had applied for a job at the UK Border Force in October 2023, which prosecutors said was part of his bid to assist Russia’s intelligence service.
Elaborate MI5 Sting Operation
Phillips first volunteered his services to the Russians in a letter intercepted by MI5 on 15 March last year. This triggered an elaborate undercover operation with two MI5 agents adopting Russian accents to pose as agents of the SVR, Russia’s foreign intelligence agency.
Jurors were played covert recordings of a meeting between Phillips and the undercover officers at the London Bridge Hotel on 26 April, where he expressed his desire to work for Russia in exchange for financial independence from the UK.
Phillips was filmed from multiple angles during the operation, despite having never heard of the SVR before. He was arrested by plain-clothed officers in a coffee shop near King’s Cross station on 16 May last year.
Defence Claims of Testing British Intelligence
Phillips claimed he had contacted the Russian embassy in early 2024 to track and expose Russian agents to assist Israel. He told jurors he ascertained “from the onset” that “Dima” and “Sasha” were “definitely not Russian” and were undercover individuals.
The defendant insisted he was “playing a role” around these agents to “test the waters”, maintaining his interactions were innocent. However, the jury rejected his defence after hearing evidence of his willingness to provide sensitive information and logistical support.
National Security Act Prosecution
Phillips was convicted under Section 3 of the National Security Act 2023, which makes it an offence to assist a foreign intelligence service in carrying out UK-related activities. The Act, which came into force on 20 December 2023, represents the most significant reform of espionage law in a century.
Mrs Justice Cheema-Grubb remanded Phillips in custody and adjourned sentencing to the “earliest available date” in the autumn. The judge said she wanted a full pre-sentence report as the conviction was for a “relatively new” offence.
Thank you very much for the important work that you have done on this very important case,” the judge told jurors. “We are trying, as a system, to get to the right answers in these situations.”
Clear Warning to Would-Be Spies
Bethan David, head of the Crown Prosecution Service’s counter terrorism division, said: “This conviction sends a clear message to anyone considering spying for or assisting Russia. Howard Phillips clearly outlined the services he was willing to provide for a hostile state.”
She added: “From gaining employment within the civil service and applying for security clearance, to providing the personal details of the Secretary of State for Defence, Phillips was brazen in his pursuit for financial gain and unbothered about the potential detriment to his own country.
The Metropolitan Police emphasised that those involved in such activities would face “extremely serious consequences. A spokesperson stated: “This case is another successful use of the National Security Act to prosecute someone who was attempting to undermine the security of the UK.”
Maximum 14-Year Sentence
Under the National Security Act, assisting a foreign intelligence service carries a maximum penalty of 14 years’ imprisonment and/or a fine. The offence captures conduct that may materially assist a foreign intelligence service, including providing information, goods, services or financial benefits.
The Act replaced provisions in the Official Secrets Acts of 1911, 1920 and 1939, modernising counter-espionage laws to address evolving state threats. MI5 Director General Ken McCallum described it as “a game changing update to our powers”.
The case highlights the ongoing threat of hostile state activity targeting the UK’s democracy, economy and values. It also demonstrates the effectiveness of MI5’s counter-intelligence operations in identifying and disrupting potential threats to national security.
Phillips now faces a lengthy prison sentence when he returns to court in the autumn, serving as a stark warning to others who might consider betraying their country for financial gain.
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