Fitzgerald will present evidence to the grand jury later this week, obtained from other witnesses who were interviewed by the Special Prosecutor or who testified, showing that Rove lied during the three times he testified under oath and that he made misleading statements to Justice Department and FBI investigators in an attempt to cover up his role in the leak when he was first interviewed about it in October 2003, the sources said.

The most serious charges Rove faces are making false statements to investigators and obstruction of justice, the sources said. He does not appear to be in jeopardy of violating the law making it a crime to leak the name of a covert CIA agent, because it's unlikely that Rove was aware that Plame Wilson was undercover, the sources said.

However, according to the sources, two things are very clear: either Rove will agree to enter into a plea deal with Fitzgerald or he will be charged with a crime, but he will not be exonerated for the role he played in the leak, based on numerous internal conversations
Fitzgerald has had with his staff. If Rove does agree to enter into a
plea, Fitzgerald is not expected to discuss any aspect of his probe into Rove,
because Rove may be called to testify as a prosecution witness against Lewis
"Scooter" Libby, the former chief of staff to Vice President Dick Cheney. Libby
was indicted last month on five counts of lying to investigators, perjury, and
obstruction of justice related to his role in the leak.

Moreover, a second high-ranking official in the Bush administration also faces the possibility of indictment for making false statements to investigators about his role in the leak: National Security Adviser Stephen Hadley.

Hadley had been interviewed in 2004 about his role in the leak and had vehemently denied speaking to reporters about Plame Wilson, the sources said. However, these sources have identified Hadley as sharing information about Plame Wilson with Washington Post editor Bob Woodward, whose stunning revelation two weeks ago - that he was the first journalist to learn of Plame Wilson's identity in mid-June 2003 and had kept that fact secret for two years - led Fitzgerald to return to a second grand jury. A spokeswoman at the National Security Council denied that Hadley was Woodward's source. Hadley, on the other hand, would neither confirm nor deny that he was Woodward's source when he was questioned by reporters two weeks ago. Woodward testified two weeks ago about what he knew and when he knew it. Woodward would not publicly reveal the identity of his source.

Rove had emailed Hadley following the conversation he had with Cooper in July 2003 regarding former Ambassador Joseph Wilson's trip to Niger to investigate allegations Iraq had tried to purchase uranium from the African country, which President Bush had referred to in his January 2003 State of the Union address, and which many critics believe was the silver bullet that convinced the American public and Congress to support a pre-emptive strike against Iraq.

Rove has remained under intense scrutiny because of inconsistencies in his
testimony to investigators and the grand jury. According to sources, Rove
withheld crucial facts on three separate occasions and allegedly misled
investigators about conversations he had with Time magazine reporter Matthew
Cooper.

The attorneys say that Rove’s former personal assistant, Susan B. Ralston
-- who was also a special assistant to President Bush -- testified in August
about why Cooper’s call to Rove was not logged. Ralston said it occurred because
Cooper had phoned in through the White House switchboard and was then
transferred to Rove’s office as opposed to calling Rove’s office directly. As
Rove’s assistant, Ralston screened Rove’s calls.

But those close to the probe tell RAW STORY that Fitzgerald obtained documentary evidence showing that other unrelated calls transferred to Rove’s office by the switchboard were logged. He then called Ralston back to testify.

Earlier this month, attorneys say Fitzgerald received additional testimony from Ralston -- who said that Rove instructed her not to log a phone call Rove had with Cooper about Plame in July 2003.

Ralston also provided Fitzgerald with more information and “clarification”
about several telephone calls Rove allegedly made to a few reporters, including
syndicated columnist Robert Novak, the lawyers said.

If true, this is perhaps the most significant evidence Fitzgerald has obtained suggesting Rove deliberately sought to mislead investigators. Her testimony may help Fitzgerald prove that there were inconsistencies in Rove’s account of his role in the leak and assess why he withheld a crucial fact from the prosecutor: that he had spoken with Time magazine reporter Matthew Cooper as well as Novak about Plame and confirmed that she was an undercover CIA agent.