The former chief of staff to the US Vice-President Dick Cheney faces jail today after being convicted of obstructing justice, perjury and lying to the FBI.

In a verdict which will come as a blow to the Bush Administration, Lewis 'Scooter' Libby was found guilty on four counts out of five by a jury at the Washington Federal Court this afternoon in connection with an FBI probe into how the identity of a CIA operative, whose husband was a prominent Iraq war critic, was leaked to the press.

Democrats seized on the verdict, at a time when President Bush’s ratings are at record lows and two-thirds of Americans now oppose a war whose rationale was Iraq’s non-existent weapons of mass destruction.

“It’s about time someone in the Bush Administration has been held accountable for the campaign to manipulate intelligence and discredit war critics,” Harry Reid, the Democratic Senate Leader, said.

Expert View

Libby is the guilty perpetrator of a small lie but the innocent victim of a much larger character and political assassination

Gerard Baker, US Editor

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Nancy Pelosi, the House Speaker, said: “The trial provided a troubling picture of the inner workings of the Bush Administration. The testimony unmistakenly revealed...a disposition to smear critics of the war in Iraq.”

The case grew out of the leaking of the secret identity of Valerie Plame, a CIA operative, whose name was given to the US media in 2003 shortly after her husband, Joseph Wilson, launched an outspoken attack against the Bush Administration over the Iraq War. Mr Wilson, a former US ambassador, accused Washington of manipulating intelligence to build its case for the 2003 invasion.

As he was found guilty of two counts of perjury, one count of lying to the FBI and one count of obstruction of justice, Libby showed little emotion. He was acquitted of one count of lying to the FBI.

Libby's legal team immediately held a press conference on the steps of the courthouse to announce their intention to either appeal, or call for a retrial. Theodore Wells, Libby's lawyer, said he was "very disappointed" with the verdict.

"We intend to file a motion for a new trial, and if that is denied we will appeal the conviction, and we have very great confidence that Mr Libby will be vindicated," he said.

However, in a separate press conference, Patrick Fitzgerald, the special prosecutor in the case, welcomed the jury's decision, adding that the US legal system could "not tolerate perjury".

"It is inconceivable that any responsible prosecutor could walk away from the facts we saw in 2003, and say: 'There is nothing here, move along folks,'" he said.

"Any lie under oath is serious. We cannot tolerate perjury. The truth is what drives our judicial system."

Dana Perino, a White House spokeswoman, said that President Bush was "saddened" for Libby's family as he heard the verdict.

"The President was informed. He was in the Oval Office. He saw the verdict read on television... He said that he respected the jury’s verdict. He said he was saddened for 'Scooter' Libby and his family," she said.

"Any administration that has to go through a prolonged news story that is unpleasant and one that is difficult when they’re under the constraints of a policy of (not commenting on ongoing legal proceedings), that can be very frustrating."

Under US law, it is a crime to reveal the identity of an undercover CIA agent. However the alleged cover-up - rather than the leak itself - was the subject of the trial.

According to the prosecution, Libby told FBI investigators and a grand jury investigating the leak that he had learnt of Ms Plame's identity as a CIA agent from reporters.

However, in further hearings, several people testified to say that he had been heard discussing her identity before the date he said he had learnt of it.

Peter Zeidenburg, the prosecution lawyer, had said in his closing statement: "He claims he forgot nine conversations with eight people over a four-week period."

The defence has maintained that Libby had suffered a memory-lapse because of the enormous responsibilities on his shoulders and the many things he had to remember.

A pre-sentence report will be completed by May 15, and sentencing in the case will be handed down on June 5. Mr Libby faces up to 25 years in jail, but is more likely to get no more than two.

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