The Central Intelligence Agency turned the case over to the Justice Department, which investigated for a year before deciding not to file charges, Newsweek magazine said.
The Justice Department returned the case to the CIA, which Newsweek said was preparing a critical report and considering revocation of Deutch's security clearances.
Agency spokesman Bill Harlow said he was familiar with the Newsweek story but could not comment. The newsmagazine said Deutch would not comment, and a call to his Massachusetts home was not returned immediately Sunday.
Quoting Justice Department sources, the magazine said Deutch's mishandling of classified material came to light shortly after he resigned in December 1996. He was to continue as a consultant.
Agency technicians went to his home for a routine check to ensure CIA procedures were being followed to protect secrets, Newsweek said in its issue appearing on newsstands Monday. They found 31 classified national security documents on his personal computer, even though he had a secure agency computer at home, the report said.
During the Justice Department investigation, Deutch was reappointed to a federal panel that studies how to combat proliferation of weapons of mass destruction and was given top security clearances, Newsweek said.
AP-NY-04-11-99 1556EDT
Copyright © Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.