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At the time that Libby offered his explanation to Cheney, the vice president already had reason to know that Libby's account to him was untrue, according to sources familiar with still-secret grand jury testimony and evidence in the CIA leak probe, as well as testimony made public during Libby's trial over the past three weeks in federal court.
Yet, according to Libby's own grand jury testimony, which was made public during his trial in federal court, Cheney did nothing to discourage Libby from telling that story to the FBI and the federal grand jury. Moreover, Cheney encouraged then-White House press secretary Scott McClellan to publicly defend Libby, according to other testimony and evidence made public during Libby's trial.
If Libby is found guilty, investigators are likely to probe further to determine if Libby devised what they consider a cover story in an effort to shield Cheney. They want to know whether Cheney might have known about the leaks ahead of time or had even encouraged Libby to provide information to reporters about Plame's CIA status, the same sources said. http://news.nationaljournal.com/articles/021907nj1.htm