Deutch left the CIA on December 15, 1996, and soon after it was revealed that several of his laptop computers contained classified information wrongfully labeled as unclassified. In January 1997, the CIA began a formal security investigation of the matter. Senior management at CIA declined to fully pursue the security breach. Over two years after his departure, the matter was referred to the Department of Justice, where Attorney General Janet Reno declined prosecution. She did, however, recommend an investigation to determine whether Deutch should retain his security clearance. Deutch had agreed to plead guilty to a misdemeanor for mishandling government secrets on January 19, 2001, but President Clinton pardoned him in his last day in office, two days before the Justice Department could file the case against him.