Rove may be next...

I. Lewis Libby Jr., Vice President Dick Cheney's chief of staff and one of the most powerful figures in the Bush administration, was formally accused today of lying and obstruction of justice during an inquiry into the unmasking of a covert C.I.A. officer.

A federal grand jury indicted Mr. Libby on one count of obstruction, two counts of perjury and two of making false statements in the course of an investigation that raised questions about the administration's rationale for going to war against Iraq, how it treats critics and political opponents and whether high White House officials shaded the truth.

The charges are felonies and could bring a sentence of up to five years in prison and a hefty fine upon conviction. Perjury is lying under oath, to a jury or other investigative body, while making false statements consists of lying to investigators while not under oath.

Karl Rove, President Bush's senior adviser and deputy chief of staff, was not charged today, but will remain under investigation, people briefed officially about the case said. As a result, they said, the special counsel in the case, Patrick J. Fitzgerald, was likely to extend the term of the federal grand jury beyond its scheduled expiration today.

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