Nick Berg, the American beheaded by terrorists, was working in Iraq as a U.S. spy!

That’s the suspicion of some Washington insiders — who also suspect his links to espionage may have led to the gruesome execution caught on a videotape that horrified the world.

“Washington is rife with rumors that Berg had a connection to U.S. intelligence,” a well-informed source told The ENQUIRER. “Fueling the suspicion is that he had Arab language capabilities and he’s said to be a computer genius.

“Someone who was prepared to brave the dangers of traveling to Iraq on an apparently legitimate business trip would obviously be of great interest to American intelligence for what he could find out.

“There’s also a lot of suspicion that maybe Nick unwittingly got sucked into spy games that ultimately cost him his life.”


Berg’s family claims that the 26-year-old Pennsylvanian traveled to Iraq to drum up work for his radio tower business.

But The ENQUIRER learned there is no evidence that Berg’s company, Prometheus Methods Tower Service, Inc., actually existed. Brian McDonald, spokesman for Pennsylvania’s Corporation Bureau, said Berg’s firm was never registered.

Berg was arrested by Iraqi police on March 24 and questioned repeatedly by FBI agents before he was released on April 6. The agents wanted to know how his e-mail password wound up in the hands of September 11 terror suspect Zacarias Moussaoui.

That happened in 1999, when Berg was a student at the University of Oklahoma and Moussaoui was enrolled at a nearby flight school, allegedly training to be an Al Qaeda hijacker.

In a bizarre disclosure that may have led to his death, Berg even confessed to one of his friends in Baghdad that there was a belief he was an agent of some sort.

“They thought he was a spy,” said Hugo Infante, a Chilean.

Berg apparently tried to make his way out of the country on April 10 and was captured by terrorists connected to Al Qaeda associate Abu Musab al-Zarqawi.

On May 8, U.S. soldiers found Berg’s headless body hanging from a highway overpass in Baghdad.

“Berg could well have been working for the CIA directly or dealing with someone from the agency who posed as someone interested in his telecommunications company,” a Washington source told The ENQUIRER.

“If he was working for the CIA directly or indirectly, the CIA and the FBI weren’t cooperating, because Berg was identified by the FBI some time ago as someone to be watched because of his interest in Iraq.”

One Internet report suggested that an Iraqi policeman tipped off terrorists that Berg was an undercover agent “and they kidnapped him right after that.”


In a strange twist, Berg was executed wearing what appeared to be a U.S.-issued orange jumpsuit normally worn by U.S.-held prisoners!

Bruce Hauser, a close neighbor who had known Berg since he was 4 years old, told The ENQUIRER: “We’d like to believe it wasn’t the Iraqi police who turned him over to the kidnappers.” — DAVID WRIGHT and TOM DiNARDO