A former City worker has been convicted of attempting to spy for Russian intelligence after he sought financial relief during his retirement. Howard Phillips, 65, from Harlow, Essex, provided sensitive information about local Member of Parliament Grant Shapps, who formerly held the position of defense secretary, during an undercover MI5 operation. Facing financial difficulties after retiring at 59, Phillips looked for unconventional work, turning to espionage as an option.
The jury at Winchester Crown Court deliberated for four hours before finding Phillips guilty of breaching the National Security Act by assisting individuals he believed to be agents of Russia’s foreign intelligence service, the SVR. During the trial, prosecutors highlighted Phillips’s desire for financial stability and an “interesting” job, which led him to offer logistical support to these supposed Russian agents in exchange for monetary compensation.
Phillips had a varied career, having worked as an insolvency practitioner and later in the charity sector, but struggled to find employment after becoming semi-retired. After exhausting his savings from a property sale, his financial situation deteriorated rapidly, compelling him to pursue espionage as a means of income. Notably, he attempted to apply to MI5 in the past, expressing a desire to serve his country, though his lack of a university degree hindered his chances.
In an effort to market himself, Phillips wrote unsolicited letters to political and entertainment figures, seeking to share his insights to influence public opinion and offering to connect with Hollywood stars. However, his financial pressures escalated and he resorted to covert communications with those he thought were Russian operatives. His met with two MI5 agents under false identities, where he outlined how he could assist with Russian intelligence operations.
Upon his arrest in May 2023, Phillips denied knowingly cooperating with a foreign intelligence service but was found to have crossed serious legal boundaries. Following the conclusion of the trial, Grant Shapps issued a statement reaffirming the dangers posed by such actions and underscored the commitment to national security, emphasizing that anyone attempting to aid hostile foreign powers will face the consequences of their actions.
This case serves as a stark reminder of the complexities surrounding espionage and the impact of financial desperation on individual choices. Phillips’s conviction also highlights the ongoing challenge that authorities face in safeguarding national security from internal threats. As these issues evolve, the hope remains that preventative measures and public awareness can mitigate similar risks in the future.