Thursday, April 4, 2013

Exposing the Labyrinth of Institutionalized Crime in the United States: The 'PROMIS' Software Scandal

Live Broadcast: Wednesday, October 27th, 2010 - 8:00 PM ET.
The Last CircleJoin our guest, investigative reporter, newspaper editor, and private detective Cheri Seymour, as she unravels a scandal that will outrage you twice...once because of the scandal, and once because the criminal media did not bring it to your attention.
Background:

Exposing the Octopus, Circa Hollywood: Revelations of Former DOJ Prosecutors in 2009.
Journalist Danny Casolaro's death was like a stone hurled into a pool of water.  Ever expanding circles of shock-waves rippled from the epicenter in Washington D.C. to the furthest reaches of the nation's consciousness. When the last circle wave crashed upon the West Coast, its psychological effects prompted California journalists to seek answers to what had been contained in Casolaro's files, stolen on the eve of his death. The Last Circle book follows the trail of his investigation which he termed “The Octopus.” Just prior to his death on August 10, 1991, Casolaro ecstatically told friends he would be traveling to Martinsburg, Va. to “bring back the head of the Octopus.”  Instead, his body was found in a blood filled bathtub at a Martinsburg hotel, his wrists slashed deeply ten or twelve times.  No papers were found in his hotel room or in his car, though his housekeeper said he filled his briefcase with documents and took them with him when he left home.  The hotel room was cleaned and his body was embalmed before relatives were notified; authorities had assumed it was a suicide.

During the last week of his life, Danny had discovered a connection between a former director of international affairs for the Justice Department, the Cali Drug Cartel, and Robert Booth Nichols, an international intelligence operative whom he had been interviewing extensively for months.  Danny's last phone bills indicated he'd spent hundreds of hours on the phone with Nichols, most of the calls averaged one to two hours.  This in effect, was one tentacle of Danny’s Octopus.
Danny had confronted Nichols about the former DOJ director and the Cali Cartel while staying in Martinsburg.  It was the last conversation Danny ever had with Nichols, and with Bob Bickel, a friend whom Danny confided in.  Bickel subsequently confirmed the conversation, but for reasons unknown, the Cali Cartel connection was never published in any of the official investigative reports on Danny's death.  These included the DOJ report of September 27, 1994.

Nevertheless, Casolaro's tragic death opened a Pandora's Box which the DOJ was never able to close.  The former DOJ career official was ultimately indicted in June 1995 for money-laundering, drug conspiracy and racketeering in connection with the Cali Cartel.

The DOJ also found no relevance to the fact that a few days before his death, Casolaro had been warned by his source, Robert Booth Nichols (RBN), to drop that aspect of his investigation, but instead, Danny had called FBI Agent Thomas Gates in Los Angeles and related Nichols’ warning, explaining that Nichols had even flown to Martinsburg to convince Danny of the danger of his probe.  Danny also called Richard Stavin, head of the Los Angeles Organized Crime Strike Force, because both Gates and Stavin had investigated RBN’s affiliation with organized crime and the entertainment conglomerate, Music Corporation of America (MCA), in Hollywood.

The FBI wiretaps had recorded Robert Booth Nichols communicating with Eugene Giaquinto, then president of MCA Home Entertainment Division, and a self-professed life-long pal of John Gotti, boss of the Gambino crime family in New York City.  Giaquinto was also a board member on Nichols' holding company, Meridian International Logistics, under investigation by the FBI as a "source of funding for the purchasing of narcotics/controlled substances and the allocation and use of the proceeds from its trafficking," according to the wiretap application.

Gates and Stavin learned more than they anticipated through the wiretaps and soon found themselves on a collision course with the Justice Department when they plugged into the DOJ’s collusion with MCA, and MCA’s cozy accord with La Cosa Nostra figures from the Gambino organized crime family.

In the Fall of 2009, Richard Stavin and another former DOJ career prosecutor, Marvin Rudnick, gave interviews for The Last Circle in which they divulged the astounding proportions of the cover-up that took place within the DOJ when their respective organized crime investigations were immediately shut down and the wiretaps sealed.

Stavin first noted for the record, “I never believed for a moment that Danny Casolaro committed suicide. I spoke to him for about 45 minutes the week before [his death] and this was not a despondent man. The first question he asked me was whether he had to be concerned for his safety because he was going to meet RBN.”

Author Cheri Seymour had obtained copies of the FBI wiretap applications along with memorandums of the actual wiretaps, including FBI internal reports on Robert Booth Nichols.  One of the main reasons she had contacted Richard Stavin was to corroborate the following: (excerpted from The Last Circle, Chapter 22, entitled “The Octopus Exposed”)

“Mr. Stavin: Can you please confirm that the FBI wiretap revealed a conversation between Eugene Giaquinto [board member of MCA and Gambino associate] and Martin Bacow in which ‘Giaquinto told Bacow that he would call Edwin Meese and have the FBI’s investigation stopped.’ Stavin, replying to what is in the public record, confirmed it in an e-mail."

The wiretap applications and affidavits submitted by Stavin and Gates evidenced a belief that Robert Booth Nichols was providing government information and printouts to Giaquinto, MCA and the Mob in Hollywood. Stavin had listened to almost every call made when the wiretaps were in effect, spent countless hours at the listening post alongside numerous agents who were assigned on a shift basis to monitor the wiretap. He said that he and Thomas Gates “were astounded by the comments Giaquinto made about Robert Booth Nichols as to what information he could get from the federal government.”

Giaquinto told Martin Bacow that the computer printouts being delivered to him by his “government man” contained indictments and other ongoing investigations as well as IRS cases.  Stavin remembered one incident in which RBN had been under surveillance and photographed exchanging materials with Eugene Giaquinto in a Hollywood parking lot outside the Le Dome restaurant on Sunset Boulevard.  

The intercepted conversations captured Giaquinto referring to Robert Booth Nichols as a “super sleuth” and other similar terms.  Martin Bacow had boasted to Giaquinto about his man in the LAPD-OCID (Los Angeles Police Department’s Organized Crime Intelligence Division), and Giaquinto boasted back about his “government man [RBN] being higher than the CIA.”

Marvin Rudnick commented that with Richard Stavin’s subsequent resignation from the DOJ, it proved that the DOJ was involved in a cover-up. “I knew they were under tremendous pressure from above,” he said.  In an e-mail to Stavin, Rudnick wrote: “I remember Bill Wagner telling me that your wiretaps included a call that went right into the White House …”

The wiretaps were so spectacularly successful that they were dismantled and the investigation was shut down when DOJ headquarters learned what they contained.  In effect, the FBI and prosecutors were ultimately obstructed and betrayed by the Justice system that they worked for.  However, unknown to the DOJ, all three of these honorable investigators had secretly and individually provided the wiretaps to an investigator for the House Judiciary Committee.  They were stored in the National Archives in Suitland, Maryland until 2001 when copies were provided to author Cheri Seymour and other individuals.
Seymour said when 15 first draft chapters of The Last Circle were placed on the Internet in 1996 by someone at Cornell University, she had no idea there was a last circle represented in Dante’s Inferno, but in retrospect it seems fitting, she reflected.  In 1306 A.D., Dante poeticized nine circles, the ninth being the last level before the final descent into Hell. “The last circle housed those souls who had been traitors to their country, their friends, and their Lords.”  This indeed was Danny Casolaro’s Octopus. The theme of the cover of The Last Circle book was predicated on this verse from Dante’s Inferno.
Self-Confessed Mafia Hit-Man Tells Media He Worked for the Government – DOJ Drops Prosecution of the Case in 2010.
Less than a week before his mysterious death, Washington D.C. journalist Danny Casolaro told friends he planned to travel to Indio, California to complete a book treatment entitled, “Behold A Pale Horse: A True Crime Narrative.”

He then drove to Martinsburg, West Virginia and checked into room 517 at the Sheraton Inn on August 8, 1991.  Two days later, his body was found by a maid in a blood filled bathtub, his wrists slashed deeply ten or twelve times, and the documents and briefcase he brought with him were missing and never recovered.  The hotel room was cleaned and his body was embalmed before relatives were notified; authorities had assumed it was a suicide.

Casolaro’s untimely death created a domino effect in Washington D.C. obliging journalists from every major newspaper and magazine in D.C. to probe the substance of Danny’s research which he dubbed the “Octopus.”  Danny’s investigation began with the theft of the PROMIS software (Prosecutor’s Management Information System), a revolutionary new software program that was developed for the U.S. Department of Justice to upgrade their case management tracking system.

Danny worked closely with Bill Hamilton, owner of INSLAW Company and developer of the PROMIS software, to locate and identify those responsible for illegally modifying the software, installing a backdoor in the program, and then selling it worldwide.  The alleged purpose of the modification was to allow U.S. authorities to secretly monitor foreign intelligence operations and track overseas commercial and banking transactions.

INSLAW’s attorney, Elliott Richardson, a respected former U.S. Attorney General, obtained an affidavit from a scientist on March 21, 1991 claiming that the PROMIS software was modified at the sovereign Cabazon Indian Reservation in Indio where a Joint Venture was in effect between the Cabazons and Wackenhut Security Corporation to develop esoteric weaponry on the reservation.

What transpired in Indio, California during the time of the Cabazon/Wackenhut Joint Venture subsequently became the subject of investigations by the U.S. Department of Justice, the House Judiciary Committee on Inslaw, U.S. Customs, the Royal Canadian Mounted Police, FBI and police agencies and media worldwide.

On September 27, 1994, the U.S. Department of Justice released a 187-page Report on INSLAW’s allegations; 62 pages of which were exclusively devoted to the death of Danny Casolaro.  On pages 166 - 167 of the DOJ report, it noted: “During forensic testing, the West Virginia State Police Crime Laboratory found a folded piece of paper inside Mr. Casolaro’s left shoe.  The shoe had been found in room 517, next to the bed --- the writing was Mr. Casolaro’s ---.”

The documents and briefcase that Casolaro took to Martinsburg were missing and never recovered, but the note hidden in his shoe contained an outline for a chapter of his book, “Behold a Pale Horse.”  The outline on the piece of paper read as follows:  “Chapter on 1980 – Terrorist underground, Afghanistan, Mideast, Iran – John Philip Nichols after arrival – Indian Reservation – Fred Alvarez – Paul Morasca – Philip Arthur Dempson [Thompson] – Fresno – Hercules, Bill Kilpatrick, The Big Tex, Ricono [Riconosciuto] – San Francisco – Finish up chapter w/Paul M. and Fred A./ord.”

There was no indication why Casolaro had put the piece of paper inside his shoe, but the last words on the note clearly revealed where his investigation had ended, i.e., “finish up chapter with Paul Morasca and Fred Alvarez.”

Fred Alvarez, 32, had been Vice-Chairman of the Cabazon Tribal Council prior to his execution-style murder and the murder of his friends, Ralph Boger and Patricia Castro on June 29, 1981 in Rancho Mirage, California.  Paul Morasca,31, had been appointed to manage the Cabazon Casino in Indio prior to his murder six months later, in San Francisco, on January 14, 1982. The seed money for the Cabazon Casino originally came from a Mafia member of the Gambino organized crime family, according to a San Francisco Chronicle article, “Tiny California Tribe’s Huge Clout,” dated September 4, 1991.   

The Morasca murder remained unsolved, but the Fred Alvarez triple-homicide cold case file was reactivated in late 2007 when Rachel Begley, the daughter of victim Ralph Boger, convinced the Riverside Sheriff’s department to re-open the case. Detective John Powers of the Central Homicide Unit - Cold Case Division, was assigned to the case.

On September 26, 2009, twenty-eight years after the murders, self-confessed Mafia hit-man James “Jimmy” Hughes, 52, was arrested as he boarded a plane destined for Honduras at Miami-Dade International Airport. Hughes had been employed as chief of security at the Cabazon Indian Reservation in 1981 and was now being charged with three counts of murder (with special circumstances) and one count of conspiracy.

Chapter 25 of The Last Circle book, entitled, “Rachel’s Resolution,” contains 49 absorbing pages about Jimmy Hughes’ involvement at the reservation, his escape to Honduras where he built a new life under the sponsorship of FGBMFI (Full Gospel Businessmen’s Fellowship International), and behind-the scenes details of Rachel Begley’s and Detective John Powers’ two-year investigation that brought Jimmy Hughes to justice.

Patrick Healy, a T.V. reporter for NBC News, had interviewed Jimmy Hughes in 1985.  In the news clip, Hughes said the Alvarez homicide was an “ordered assassination,” adding that the hit was an “authorized, backed, government covert action.”

http://www.nbclosangeles.com/station/as-seen-on/Victim_s_Daughter_Decries_Dismissal_of_Murder_Charges_Los_Angeles.html

According to all accounts, Fred Alvarez had been murdered to stop him from exposing either to the Tribal Council or publicly, various illegal activities at the reservation, including but not limited to the skimming of profits off the top of the Cabazon gambling enterprises by the Cabazon Administrator and his staff.

At a FGBMFI website: http://www.fgbmfivoice.com/stories/996hughes.htm in an article entitled, “A Hit Man With A New Mission,” Hughes inexplicably confessed his career as a Mafia hit-man before he found God:  (excerpt)
“After a six-year hitch in the military, I became a professional hit man for the Mafia. I collected money, hurt a lot of people and saw a lot of blood. I know what it’s like to cut the throat of a man, see a man die, or throw a man in the trunk of a car and take him to his death. I did many horrible things. I allowed myself to do whatever was necessary."

“One day I had a contract on a man. They had paid me a lot of money to kill this person. I travelled over many states, and walked into the man’s house one day, pulled out my pistol, and put a bullet in everybody’s head."

“There were many people there that day because he was having a party. As I stood there with the gun in my hand, I suddenly realized that all those people were dead. They had died instantly. I had been paid to kill one man, but had killed half a dozen people. The rest had just been in the wrong place at the wrong time --- “
The author of The Last Circle, Cheri Seymour, said she ended her investigative journey with the arrest and extradition of Jimmy Hughes because, after 18 years, she finally found a happy ending to her book.

Not so --- On July 1, 2010, nine months after Hughes’ arrest, and on the 29th anniversary of the date that the bodies of Alvarez, Boger and Castro were found, the state Deputy Attorney General got the case dismissed in Indio superior court, and Jimmy Hughes was set free that same day.

On July 2, the Desert Sun newspaper in Indio published an article titled, “Octopus Murders Case Dropped: Officials Refuse to Divulge New Evidence that Led to Dismissal,” in which Begley said that “she feared for the safety of herself and others” with Hughes’ release from jail.  The Attorney General’s office would not give interviews or comment on what “new evidence” had influenced them to drop the Jimmy Hughes case.

Begley articulated a statement in court requesting a Preliminary Hearing so the court could determine the evidence in the case. (excerpt): “ --- Please be advised that the only request I am making for myself and on behalf of the family members of the other murder victims, is that the evidence against Mr. Hughes be presented in a court of law and that Mr. Hughes face his accusers here in the United States rather than hiding out in Honduras where he is untouchable.

“There must be a way, Your Honor, with the power and wisdom of this court, that you can find a way to protect the lives and rights of Hughes’ victims.  To Jimmy Hughes I say: I hope your short time in jail has given you time to truly repent. Be advised that even if the court and the Attorney General fail me today, I will never give up seeking truth and justice for my dad, Fred, and Patty.”

Read more about The Last Circle at:   http://www.ark-roundtable.com/book.html

Cheri Seymour has worked as an investigative reporter, newspaper editor, and private detective for two decades while pursuing a career as a non-fiction writer.
The INSLAW Octopus



Software piracy, conspiracy, cover-up, stonewalling, covert action: Just another decade at the Department of Justice

By Richard L. Fricker

http://www.wired.com/wired/archive/1.01/inslaw_pr.html




The House Judiciary Committee lists these crimes as among the possible violations perpetrated by "high-level Justice officials and private individuals":

>> Conspiracy to commit an offense >> Fraud >> Wire fraud >> Obstruction of proceedings before departments, agencies and committees >> Tampering with a witness >> Retaliation against a witness >> Perjury >> Interference with commerce by threats or violence >> Racketeer Influenced and Corrupt Organizations (RICO) violations >> Transportation of stolen goods, securities, moneys >> Receiving stolen goods




Bill Hamilton, Inslaw & PROMIS


Who:
Bill Hamilton and his wife, Nancy Hamilton, start Inslaw to nurture PROMIS (Prosecutors Management Information Systems).

Why #1:
The DOJ, aware that its case management system is in dire need of automation, funds Inslaw and PROMIS. After creating a public-domain version, Inslaw makes significant enhancements to PROMIS and, aware that the US market for legal automation is worth $3 billion, goes private in the early '80s.

Why #2:
Designed as case-management software for federal prosecutors, PROMIS has the ability to combine disparate databases, and to track people by their involvement with the legal system. Hamilton and others now claim that the DOJ has modified PROMIS to monitor intelligence operations, agents and targets, instead of legal cases.

By late November, 1992 the nation had turned its attention from the election-weary capital to Little Rock, Ark., where a new generation of leaders conferred about the future. But in a small Washington D.C. office, Bill Hamilton, president and founder of Inslaw Inc., and Dean Merrill, a former Inslaw vice president, were still very much concerned about the past.

The two men studied six photographs laid out before them. "Have you ever seen any of these men?" Merrill was asked. Immediately he singled out the second photo. In a separate line up, Hamilton's secretary singled out the same photo.

Both said the man had visited Inslaw in February 1983 for a presentation of PROMIS, Inslaw's bread-and-butter legal software. Hamilton, who knew the purpose of the line-up, identified the visitor as Dr. Ben Orr. At the time of his visit, Orr claimed to be a public prosecutor from Israel.

Orr was impressed with the power of PROMIS (Prosecutors Management Information Systems), which had recently been updated by Inslaw to run on powerful 32-bit VAX computers from Digital Equipment Corp. "He fell in love with the VAX version," Hamilton recalled.

Dr. Orr never came back, and he never bought anything. No one knew why at the time. But for Hamilton, who has fought the Department of Justice (DOJ) for almost 10 years in an effort to salvage his business, once his co- workers recognized the man in the second photo, it all made perfect sense.

For the second photo was not of the mysterious Dr. Orr, it was of Rafael Etian, chief of the Israeli defense force's anti-terrorism intelligence unit. The Department of Justice sent him over for a look at the property they were about to "misappropriate," and Etian liked what he saw. Department of Justice documents record that one Dr. Ben Orr left the DOJ on May 6, 1983, with a computer tape containing PROMIS tucked under his arm.

What for the past decade has been known as the Inslaw affair began to unravel in the final, shredder-happy days of the Bush administration. According to Federal court documents, PROMIS was stolen from Inslaw by the Department of Justice directly after Etian's 1983 visit to Inslaw (a later congressional investigation preferred to use the word "misappropriated"). And according to sworn affidavits, PROMIS was then given or sold at a profit to Israel and as many as 80 other countries by Dr. Earl W. Brian, a man with close personal and business ties to then-President Ronald Reagan and then-Presidential counsel Edwin Meese.

A House Judiciary Committee report released last September found evidence raising "serious concerns" that high officials at the Department of Justice executed a pre-meditated plan to destroy Inslaw and co-opt the rights to its PROMIS software. The committee's call for an independent counsel have fallen on deaf ears. One journalist, Danny Casolaro, died as he attempted to tell the story (see sidebar), and boxes of documents relating to the case have been destroyed, stolen, or conveniently "lost" by the Department of Justice.

But so far, not a single person has been held accountable.



WIRED has spent two years searching for the answers to the questions Inslaw poses: Why would Justice steal PROMIS? Did it then cover up the theft? Did it let associates of government officials sell PROMIS to foreign governments, which then used the software to track political dissidents instead of legal cases? (Israel has reportedly used PROMIS to track troublesome Palestinians.)

The implications continue: that Meese profited from the sales of the stolen property. That Brian, Meese's business associate, may have been involved in the October Surprise (the oft-debunked but persistent theory that the Reagan campaign conspired to insure that US hostages in Iran were held until after Reagan won the 1980 election, see sidebar). That some of the moneys derived from the illegal sales of PROMIS furthered covert and illegal government programs in Nicaragua. That Oliver used PROMIS as a population tracking instrument for his White House-based domestic emergency management program.

Each new set of allegations leads to a new set of possibilities, which makes the story still more difficult to comprehend. But one truth is obvious: What the Inslaw case presents, in its broadest possible implications, is a painfully clear snapshot of how the Justice Department operated during the Reagan-Bush years.

This is the case that won't go away, the case that shows how justice and public service gave way to profit and political expediency, how those within the administration's circle of privilege were allowed to violate private property and civil rights for their own profit.

Sound like a conspiracy theorist's dream? Absolutely. But the fact is, it's true.



The Background


Imagine you are in charge of the legal arm of the most powerful government on the face of the globe, but your internal information systems are mired in the archaic technology of the 1960s. There's a Department of Justice database, a CIA database, an Attorney's General database, an IRS database, and so on, but none of them can share information. That makes tracking multiple offenders pretty darn difficult, and building cases against them a long and bureaucratic task.

Along comes a computer program that can integrate all these databases, and it turns out its development was originally funded by the government under a Law Enforcement Assistance Administration grant in the 1970s. That means the software is public domain ... free!

Edwin Meese was apparently quite taken with PROMIS. He told an April 1981 gathering of prosecutors that PROMIS was "one of the greatest opportunities for [law enforcement] success in the future." In March 1982, Inslaw won a $9.6 million contract from the Justice Department to install the public domain version of PROMIS in 20 US Attorney's offices as a pilot program. If successful, the company would install PROMIS in the remaining 74 federal prosecutors' offices around the country. The eventual market for complete automation of the Federal court system was staggering: as much as $3 billion, according to Bill Hamilton. But Hamilton would never see another federal contract.

Designed as a case-management system for prosecutors, PROMIS has the ability to track people. "Every use of PROMIS in the court system is tracking people," said Inslaw President Hamilton. "You can rotate the file by case, defendant, arresting officer, judge, defense lawyer, and it's tracking all the names of all the people in all the cases."

What this means is that PROMIS can provide a complete rundown of all federal cases in which a lawyer has been involved, or all the cases in which a lawyer has represented defendant A, or all the cases in which a lawyer has represented white-collar criminals, at which stage in each of the cases the lawyer agreed to a plea bargain, and so on. Based on this information, PROMIS can help a prosecutor determine when a plea will be taken in a particular type of case.

But the real power of PROMIS, according to Hamilton, is that with a staggering 570,000 lines of computer code, PROMIS can integrate innumerable databases without requiring any reprogramming. In essence, PROMIS can turn blind data into information. And anyone in government will tell you that information, when wielded with finesse, begets power. Converted to use by intelligence agencies, as has been alleged in interviews by ex-CIA and Israeli Mossad agents, PROMIS can be a powerful tracking device capable of monitoring intelligence operations, agents and targets, instead of legal cases.



At the time of its inception, PROMIS was the most powerful program of its type. But a similar program, DALITE, was developed under another LEAA grant by D. Lowell Jensen, the Alameda County (Calif.) District Attorney. In the mid-1970s, the two programs vied for a lucrative Los Angeles County contract and Inslaw won out. (Early in his career, Ed Meese worked under Jensen at the Alameda County District Attorney's office. Jensen was later appointed to Meese's Justice Department during the Reagan presidency.)

In the final days of the Carter administration, the LEAA was phased out. Inslaw had made a name for itself and Hamilton wanted to stay in business, so he converted Inslaw to a for-profit, private business. The new Inslaw did not own the public domain version of PROMIS because it had been developed with LEAA funds. But because it had funded a major upgrade with its own money, Inslaw did claim ownership of the enhanced PROMIS.

Through his lawyers, Hamilton sent the Department of Justice a letter outlining his company's decision to go private with the enhanced PROMIS. The letter specifically asked the DOJ to waive any proprietary rights it might claim to the enhanced version. In a reply dated August 11, 1982, a DOJ lawyer wrote: "To the extent that any other enhancements (beyond the public domain PROMIS) were privately funded by Inslaw and not specified to be delivered to the Department of Justice under any contract or other agreement, Inslaw may assert whatever proprietary rights it may have."

Arnold Burns, then a deputy attorney general, clarified the DOJ's position in a now-critical 1988 deposition: "Our lawyers were satisfied that Inslaw's lawyers could sustain the claim in court, that we had waived those [proprietary] rights."

The enhancements Inslaw claimed were significant. In the 1970s the public- domain PROMIS was adapted to run on Burroughs, Prime, Wang and IBM machines, all of which used less-powerful 16-bit architectures. With private funds, Inslaw converted that version of PROMIS to a 32-bit architecture running on a DEC VAX minicomputer. It was this version that Etian saw in 1983. It was this version that the DOJ stole later that year through a pre-meditated plan, according to two court decisions.



The Dispute Grows


On a gorgeous spring morning in 1981, Lawrence McWhorter, director of the Executive Office for US Attorneys, put his feet on his desk, lit an Italian cigar, eyed his subordinate Frank Mallgrave and said through a haze of blue smoke: "We're out to get Inslaw."

McWhorter had just asked Mallgrave to oversee the pilot installation of PROMIS, a job Mallgrave refused, unaware at the time that he was being asked to participate in Inslaw's deliberate destruction.

"We were just in his office for what I call a B.S. type discussion," Mallgrave told WIRED. "I remember it was a bright sunny morning.... (McWhorter) asked me if I would be interested in assuming the position of Assistant Director for Data Processing...basically working with Inslaw. I told him...I just had no interest in that job. And then, almost as an afterthought, he said 'We're out to get Inslaw.' I remember it to this day."

After Mallgrave refused the job, McWhorter gave it to C. Madison "Brick" Brewer. Brewer at one time worked for Inslaw, but was allowed to resign when Hamilton found his performance inadequate, according to court documents. Brewer was then hired into the Department of Justice specifically to oversee the contract of his former employer. (The DOJ's Office of Professional Responsibility ruled there was no conflict of interest.) He would later tell a federal court that everything he did regarding Inslaw was approved by Deputy Attorney General Lowell Jensen, the same man who once supervised DALITE, the product which lost a major contract to Inslaw in the 1970s.

Brewer, who now refuses to comment on the Inslaw case, was aided in his new DOJ job by Peter Videnieks. Videnieks was fresh from the Customs Service, where he oversaw contracts between that agency and Hadron, Inc., a company controlled by Meese and Reagan-crony Earl Brian. Hadron, a closely held government systems consulting firm, was to figure prominently in the forthcoming scandal.



According to congressional and court documents, Brewer and Videnieks didn't tarry in their efforts to destroy Inslaw. After Inslaw's installation of public domain PROMIS had begun, the DOJ claimed that Inslaw, which was supporting the installation with its own computers running the enhanced version of PROMIS, was on the brink of bankruptcy. Although Inslaw was contracted to provide only the public domain PROMIS, the DOJ demanded that Inslaw turn over the enhanced version of PROMIS in case the company could not complete its contractual obligations. Inslaw agreed to this contract modification, but on two conditions: that the DOJ recognize Inslaw's proprietary rights to enhanced PROMIS, and that the DOJ not distribute enhanced PROMIS beyond the boundaries of the contract (the 94 US Attorney's offices.)

The DOJ agreed to these conditions, but requested Inslaw prove it had indeed created enhanced PROMIS with private funds. Inslaw said it would, and the enhanced software was given to the DOJ.

Once the DOJ had control of PROMIS, it dogmatically refused to verify that Inslaw had created the enhancements, essentially rendering the contract modification useless. When Inslaw protested, the DOJ began to withhold payments. Two years later, Inslaw was forced into bankruptcy.

As the contract problems with DOJ emerged, Hamilton received a phone call from Dominic Laiti, chief executive of Hadron. Laiti wanted to buy Inslaw. Hamilton refused to sell. According to Hamilton's statements in court documents, Laiti then warned him that Hadron had friends in the government and if Inslaw didn't sell willingly, it would be forced to sell.

Those government connections included Peter Videnieks over at the Justice Department, according to John Schoolmeester, Videnieks' former Customs Service supervisor. Laiti and Videnieks both deny ever meeting or having any contact, but Schoolmeester has told both WIRED and the House Judiciary Committee it was "impossible" for the pair not to know each other because of the type of work and oversight involved in Hadron's relationship with the Customs Service. Schoolmeester also said that because of Brian's relationship with then-President Reagan (see sidebar), Hadron was considered an "inside" company.

The full-court press continued. In 1985 Allen & Co., a New York investment banking concern with close business ties to Earl Brian, helped finance a second company, SCT, which also attempted to purchase Inslaw. That attempt also failed, but in the process a number of Inslaw's customers were warned by SCT that Inslaw would soon go bankrupt and would not survive reorganization, Hamilton said in court documents.

Broke and with no friends in the government, on June 9, 1986, Inslaw filed a $30 million lawsuit against the DOJ in bankruptcy court. Inslaw's attorney for the case (he was later fired from his firm under extremely suspicious circumstances -- see sidebar) was Leigh Ratiner of the Wash- ington firm Dickstein, Shapiro & Morin. Ratiner chose bankruptcy court for the filing based on the premise that Justice, the creditor, had control of PROMIS. He explained recently, "It was forbidden by the BankruptcyAct for the creditor to exercise control over the debtor property. And that theory -- that the Justice Department was exercising control -- was the basis that the bankruptcy court had jurisdiction.

"As far as I know, this was the first time this theory had been used," Ratiner told WIRED. "This was ground-breaking. It was, in fact, a legitimate use of the code."

It worked, but to only a point. In 1987, Washington, D.C., bankruptcy judge George Bason ruled in a scathing opinion that Justice had stolen PROMIS through "trickery, fraud and deceit." He awarded Inslaw $6.8 million in damages and, in the process, found that Justice Department officials made a concerted effort to bankrupt Inslaw and place the company's enhanced PROMIS up for public auction (where it would then be fodder for Brian's Hadron). Bason's findings of fact relied on testimony from Justice employees and internal memoranda, some of which outlined a plan to "get" PROMIS software.

Bason cited the testimony of a number of the government's defense witnesses as being "unbelievable" and openly questioned the credibility of others. In his 216-page ruling, Bason cites numerous instances where testimony from government witnesses is contradictory. (In a private interview with WIRED he noted that as a bankruptcy judge he was precluded from bringing perjury charges against government employees, but he had recommended to various congressional panels that an inquiry was necessary.)



When the DOJ appealed, a federal district court affirmed Bason, ruling that there was "convincing, perhaps compelling support for the findings set forth by the bankruptcy court." But the D.C. Circuit Court of Appeals reversed the case on a legal technicality, finding that the bankruptcy court had no jurisdiction to hear the damages claim. A petition to the Supreme Court in October 1991 was denied review.

The IRS got into the act as well. Inslaw was audited several times in the course of their battles with the Department of Justice. In fact, the day following the bankruptcy trial, S. Martin Teel, a lawyer for the IRS, requested that Judge Bason liquidate Inslaw. Bason ruled against Teel. As a coda to the lawsuit, Bason, a respected jurist, was not re-appointed to the bench when his term expired. His replacement? S. Martin Teel. (Bason has testified before Congress that the DOJ orchestrated his replacement as punishment for his rulings in the Inslaw case.)

But Inslaw's troubles did not end with bankruptcy. Frustrated by Attorney General Dick Thornburgh's stubborn refusal to investigate the DOJ or appoint an independent prosecutor, Elliot Richardson, President Nixon's former attorney general and a counsel to Inslaw for nearly 10 years (he retired this January), filed a case in U.S. District Court demanding that Thornburgh investigate the Inslaw affair. In 1990, the court ruled that a prosecutor's decision not to investigate -- "no matter how indefensible" -- cannot be corrected by any court. Another loss for Inslaw.

Broke and still attempting to revive itself, Inslaw has not refiled its suit, preferring to wait for a new administration and a new DOJ.

By this time, the spinning jennies of the conspiracy network had grasped the Inslaw story and were all-too-eager to put their stitch in the unraveling yarn. According to documents and affidavits filed during court cases and congressional inquiries, the Hamiltons and their lawyers began receiving phone calls, visits and memos from a string of shadowy sources, many of them connected to international drug, spy and arms networks. Their allegations: That Earl Brian helped orchestrate the October Surprise for then-candidate Reagan, and that Brian's eventual payment for that orchestration was a cut of the PROMIS action. Brian and the DOJ then resold or gave PROMIS to as many as 80 foreign and domestic agencies. (Brian adamantly denies any connection to Inslaw or the October Surprise.)

These sources, which include ex-Israeli spy Ari Ben Menashe and a computer programmer of dubious reputation, Michael Riconosciuto, allege that PROMIS had been further modified by the DOJ so that any agency using it could be subject to undetected DOJ eavesdropping -- a sort of software Trojan Horse. If these allegations are true, by the late 1980s PROMIS could have become the digital ears of the US Government's spy effort -- both internal and external. Certainly something the administration wouldn't want nosy congressional committees looking into.

The diaphanous web of more than 30 sources who offered information to Inslaw were not "what a lawyer might consider ideal witnesses," Richardson admitted. But their stories yielded a surprising consistency. "The picture that emerges from the individual statements is remarkably detailed and consistent," he wrote in an Oct. 21, 1991 New York Times Op Ed.



The Congressional Investigation


The string of lawsuits and widening allegations caught the eye of House Judiciary Committee Chairman Jack Brooks, D-Texas, who in 1989 launched a three-year investigation into the Inslaw affair. In the resulting report, the Committee suggested that among others, Edwin Meese, while presidential counselor and later as attorney general, and D. Lowell Jensen, a former assistant and deputy attorney general and now a US district judge in San Francisco, conspired to steal PROMIS.

"High government officials were involved," the report states. "... (S)everal individuals testified under oath that Inslaw's PROMIS software was stolen and distributed internationally in order to provide financial gain and to further intelligence and foreign policy objectives."

"Actions against Inslaw were implemented through the Project Manager (Brick Brewer) from the beginning of the contract and under the direction of high- level Justice Department officials," the report says. "The evidence...demonstrates that high-level Department officials deliberately ignored Inslaw proprietary rights and misappropriated its PROMIS software for use at locations not covered under contract with the company."



The Committee report accuses former Attorney General Dick Thornburgh of stonewalling congressional inquiries, turning a blind eye to the possible destruction of evidence within the Justice Department, and ignoring the DOJ's harassment of employees questioned by Congressional investigators.

Rep. Brooks told WIRED that the report should be the starting point for a grand jury investigation. The owners of Inslaw, Brooks said, were "ravaged by the Justice Department...treated like dogs."

Brooks' committee voted along party lines, 21-13, to adopt the investigative report on Aug. 11, 1992. The report asked then-Attorney General William Barr to "immediately settle Inslaw's claims in a fair and equitable manner" and "strongly recommends that the Department seek the appointment of an Independent Counsel."

As he did with the burgeoning Iraqgate scandal and as his predecessor did before him, Barr refused to appoint an independent counsel to the Inslaw case, relying instead on a retired federal judge, in this case Nicholas Bua, who reported to Barr alone. In other words, the DOJ was responsible for investigating itself.

"The way in which the Department of Justice has treated this case, to me, is inexplicable," Richardson told WIRED. "I think the circumstances most strongly suggest that there must be wider ramifications."



The Threads Unravel


Proof of those wider ramifications are just starting to leak out, as DOJ and other agency employees begin to talk, although for the most part they spoke to WIRED only on condition of anonymity.

On Nov. 20, 1990, the Judiciary Committee wrote a letter asking CIA director William Webster to help the committee "by determining whether the CIA has the PROMIS software."

The official reply on December 11th: "We have checked with Agency components that track data processing procurement or that would be likely users of PROMIS, and we have been unable to find any indication that the Agency ever obtained PROMIS software."

But a retired CIA official whose job it was to investigate the Inslaw allegations internally told WIRED that the DOJ gave PROMIS to the CIA. "Well," the retired official told WIRED, "the congressional committees were after us to look into allegations that somehow the agency had been culpable of what would have been, in essence, taking advantage of, like stealing, the technology [PROMIS]. We looked into it and there was enough to it, the agency had been involved."

How was the CIA involved? According to the same source, who requested anonymity, the agency accepted stolen goods, not aware that a major scandal was brewing. In other words, the DOJ robbed the bank, and the CIA took a share of the plunder.

But the CIA was not the only place where illegal versions of PROMIS cropped up. Canadian documents (held by the House Judiciary Committee and obtained by WIRED) place PROMIS in the hands of various Canadian government agencies. These documents include two letters to Inslaw from Canadian agencies requesting detailed user manuals -- even though Inslaw has never sold PROMIS to Canada. Canadian officials now claim the letters were in error.

And, of course, the software was transferred to Rafael Etian's anti- terrorism unit in Israel. The DOJ claims it was the LEAA version, but former Israeli spy Ben Menashe and others claim it was the 32-bit version. According to Ben Menashe, other government departments within Israel also saw PROMIS, and this time the pitchman was Dr. Earl Brian. In a 1991 affidavit related to the bankruptcy proceedings, Ben Menashe claimed: "I attended a meeting at my Department's headquarters in Tel Aviv in 1987 during which Dr. Earl W. Brian of the United States made a presentation intended to facilitate the use of the PROMIS computer software."

"Dr. Brian stated during his presentation that all U.S. Intelligence Agencies, including the Defense Intelligence Agency, the Central Intelligence Agency, and the National Security Agency and the U.S. Department of Justice were then using the PROMIS computer software," Ben Menashe continued. While the credibility of his statements has been questioned, the Israeli government has admitted that Ben Menashe had access to extremely sensitive information during his tenure at the Mossad.

Asked why Israeli intelligence would have been so interested in Inslaw and PROMIS, Ben Menashe said, "PROMIS was a very big thing for us guys, a very, very big thing ... it was probably the most important issue of the '80s because it just changed the whole intelligence outlook. The whole form of intelligence collection changed. This whole thing changed it." PROMIS, Ben Menashe said, was perfect for tracking Palestinians and other political dissidents.



(Ben Menashe's superior during this period was Rafael Etian, or Dr. Ben Orr, as he was known during his 1983 visit to Inslaw.)

Apparently, Israel was not the only country interested in using PROMIS for internal security purposes. Lt. Col. Oliver North also may have been using the program. According to several intelligence community sources, PROMIS was in use at a 6,100-square-foot command center built on the sixth floor of the Justice Department. According to both a contractor who helped design the center and information disclosed during the Iran-Contra hearings, Oliver North had a similar, but smaller, White House operations room that was connected by computer link to the DOJ's command center.

Using the computers in his command center, North tracked dissidents and potential troublemakers within the United States as part of a domestic emergency preparedness program, commissioned under Reagan's Federal Emergency Management Agency (FEMA), according to sources and published reports. Using PROMIS, sources point out, North could have drawn up lists of anyone ever arrested for a political protest, for example, or anyone who had ever refused to pay their taxes. Compared to PROMIS, Richard Nixon's enemies list or Sen. Joe McCarthy's blacklist look downright crude. This operation was so sensitive that when Rep. Jack Brooks asked North about it during the Iran-Contra hearings, the hearing was immediately suspended pending an executive (secret) conference. When the hearings were reconvened, the issue of North's FEMA dealings was dropped.



A Thorough Cleaning at the White House?


If the case against the Department of Justice is so solid, why hasn't anything been done? The answer is timing. The next move belongs to retired Federal Judge Bua, since he was given oversight by Attorney General Barr in lieu of an independent counsel. And everyone, including Judge Bua, whose non-binding report was pending at WIRED's early December deadline, seems to be waiting for the new administration. Both the Clinton/Gore transition team and House majority leader Richard Gephardt had no comment on the Inslaw case pending Clinton's inauguration.

But a source close to Bua's investigation said the retired judge may present the DOJ with a bombshell. While not required to suggest a settlement, the source believes Bua will reportedly recommend that Inslaw be given between $25 million and $50 million for its mistreatment by the DOJ. (In last-minute negotiations, Inslaw attorney Elliot Richardson held brief meetings with DOJ officials in mid-December. Richardson pressed for a settlement ranging from $25 million to $500 million, but the DOJ balked, according to newspaper reports.)

But the question remains: Can the DOJ paper over the willful destruction of a company, the plundering of its software, the illegal resale of that software to further foreign policy objectives, and the overt obstruction of justice with $25 million?

Bua's final recommendation, expected sometime before Clinton's inauguration, is that the Inslaw Affair "requires further investigation," the source said. That conclusion mirrors the House Judiciary Committee's report. Privately, many Democrats, including Gephardt, have expressed a strong desire to get to the bottom of the Inslaw case. Rep. Brooks will be pushing for yet another investigation of the scandal, this time independent of the Justice Department, according to Congressional sources. Once Bua's report is out, the next and possibly final move will be up to a new president, a new Congress, and, possibly, a renewed sense of justice.







SIDEBARS to the Inslaw Article









Earl W. Brian - The Consumate Insider


Dr. Earl W. Brian has made quite a career of riding Reagan and Meese's coattails. After a stint in Vietnam, where he worked as a combat physician in the unit that supplied air support for Operation Phoenix, Brian returned to California with a chest full of ribbons and a waiting job - as Secretary of Health - with then-Governor Reagan's administration. (Operation Phoenix, a well-documented CIA political assassination program, used computers to track "enemies" in Vietnam.)

In 1974, Brian resigned his cabinet post with Governor Reagan to run for the Senate against Alan Cranston. After his defeat, Brian moved into the world of business and soon ran into trouble. His flagship company, Xionics, was cited by the Security and Exchange Commission for issuing press releases designed to boost stock prices with exaggerated or bloated information. The SEC also accused Xionics of illegally paying "commissions" to brokers, according to SEC documents.

At the close of the Reagan governorship, Brian was involved in a public scandal having to do with - surprise - stolen computer tapes. The tapes, which contained records of 70,000 state welfare files, were eventually returned - Brian claimed he had a right to them under a contract signed in the last hours of the administration. (Brian said he just wanted to develop a better way of doing welfare business.)

In 1980, Brian formed Biotech Capital Corp., a venture capital firm designed to invest in biological and medical companies. Ultimately, Brian has invested in and owned several companies, including FNN (Financial News Network) and UPI, both of which ended up in dire financial straits.

Ursula Meese, who like her husband knew Brian from the Reagan cabinet, was an early investor in Biotech, using $15,000 (borrowed from Edwin Thomas, a Meese aide in the White House and another Reaganite from California) to purchase 2,000 shares on behalf of the Meese's two children, according to information made public during Meese's confirmation hearings for Attorney General.

It is those Reagan-Meese connections that continue to drag Brian into the Inslaw affair. For why would Brian, of all people, be the recipient of stolen PROMIS? PROMIS, after all, was a major part in government automation contracts estimated at $3 billion, according to Inslaw President Bill Hamilton. That's quite a political plum.

One possibility is Ed and Ursula Meese's financial connections to Brian. Another is a payoff for Brian's role in the October Surprise Even if he manages to evade the Inslaw allegations, Brian may still be in hot water. As of this writing, Financial News Network's financial dealings were under investigation by a Los Angeles Grand Jury, according to sources who have testified before it. - RLF



What A Surprise!


Earl W. Brian says he wasn't in Paris in October 1980, but investors were told a different story

As Inslaw President Bill Hamilton moved his company from non-profit status to the private sector in 1980, Ronald Reagan was running for President, negotiations for the release of the American hostages in Iran had apparently hit a snag, and Dr. Earl W. Brian was touring Canada touting stock in his newly acquired Clinical Sciences Inc.

History records that the hostages were released as Ronald Reagan took the Presidential oath of office, and that shortly thereafter, Inslaw received a $9.6 million contract from the Department of Justice. At the same time, Earl Brian was appointed to a White House post to advise on health-care issues. Brian reported directly to Ed Meese. He also arranged White House tours to woo investors in his government contracting company, Hadron Inc., according to a Canadian investment banker who took a tour.

But these seemingly random historical connections between Inslaw, Hadron, the Reagan White House and Earl Brian take on a new meaning when considered in light of the "October Surprise," the persistent allegation that the Reagan campaign negotiated with Iranian officials to guarantee that US hostages would not be released before Reagan won election in 1980.

The October Surprise theory hinges in part on alleged negotiations between the Reagan campaign and the Iranians on the weekend of Oct. 17-21, 1980, in Paris, among other places.The deal, according to former Iranian President Abol Hassan Bani-Sadr, ex-Israeli spy Ari Ben Menashe, and a former CIA contract agent interviewed by WIRED, included the payment of $40 million to the Iranians.

According to several sources, Earl Brian, one of Reagan's close advisors, made it quite clear that he was planning to be in Paris that very weekend. Ben Menashe, who says he was one of six Israelis, 12 Americans and 16 Iranians present at the Paris talks, said, "I saw Brian in Paris."

Brian was interviewed by Senate investigators on July 28, 1992, and denied under oath any connection with the alleged negotiations. He told the investigators he did not have a valid passport during the October 1980 dates. But according to court documents and interviews, Brian told Canadian investors in his newly acquired Clinical Sciences, Inc., that he would be in Paris that weekend. Brian acquired controlling interest in Clinical Sciences in the summer of 1980. Clinical Sciences was then trading at around $2 a share. Brian worked with Janos P. Pasztor, a vice president and special situations analyst with the Canadian investment bank of Nesbitt, Thomson, Bongard Inc., to create a market of Canadian investors for the stock.

Pasztor later testified in court documents that Brian said he would be in Paris the weekend of October 17 to do a deal with the Pasteur Institute (a medical research firm).

Two other brokers, Harry Scully, a broker based in Halifax, Nova Scotia, and John Belton, a senior account executive with Nesbitt-Thomson from 1968 to 1982 who is suing Nesbitt-Thomson and Pasztor for securities fraud, also claim that they were told that Brian was in Paris that weekend.

But if Brian went to Paris to see the Pasteur Institute, he seems to have missed his appointment. An investigation by the Royal Canadian Mounted Police into Clinical Sci-ences stock transactions revealed that the Pasteur Institute had never conducted business with, or even heard of Brian.

When asked by WIRED to elaborate on Brian's 1980 trip, Pasztor said, "These are political questions and I don't want to become involved." He refused further comment.Brian contends that the dates of his trip were in error and that he went to Paris in April 1981, not October 1980. But the passport he turned over to Senate investigators did not contain a French entry or exit stamp for April 1981.

Through his lawyers, Brian refused to be interviewed for this story. - RLF



Earl W. Brian: Closet Spook?


Michael Riconosciuto, a computer programmer and chemist who surfs the spooky fringe of the guns-'n'-money crowd, is currently serving a federal prison sentence for drug crimes. From his jail cell he has given several interviews claiming knowledge of Inslaw and the October Surprise (he also claims his jail term is the DOJ's way of punishing him for his knowledge). Much of what he claims cannot be verified, other statements have failed to be veri-fied conclusively.

But prior to his arrest in 1991, Riconosciuto provided the Hamiltons with an affidavit that once again brought Brian into the Inslaw picture. "I engaged in some software development and modification work in 1983 and 1984 on proprietary PROMIS computer software product," he stated. "The copy of PROMIS on which I worked came from the US Department of Justice. Earl W. Brian made it available to me through Wackenhut (a security company with close FBI and CIA connections) after acquiring it from Peter Videnieks, who was then a Department of Justice contracting official with the responsibility for PROMIS software. I performed the modifications to PROMIS in Indio, Calif.; Silver Springs, Md.; and Miami, Fla."

The modifications included a telecommunications "trap door" that would let the US Government eavesdrop on any other organization using the pirated software, Riconosciuto said.

Videnieks and Brian both told House investigators that they did not know Riconosciuto. After Riconosciuto was interviewed by House investigators, Videnieks refused to give Congress further interviews.

Although Brian denies any involvement with Inslaw or Riconosciuto, the House Judiciary Committee received a report from a special task force of the Riverside County, Calif., Sheriff's Office and District Attorney, stating that on the evening of Sept. 10, 1981, arms dealers, buyers and various intelligence operatives gathered at the Cabazon Indian Reservation near Indio, Calif., for a demonstration of night warfare weapons. The demonstration was orchestrated jointly by Wackenhut and the Cabazon Indian tribe. (Many published reports allege that the Wackenhut/Cabazon joint venture served as a weapons fencing operation for Oliver North's Iran- Contra dealings.)

According to Indio city police officers hired to provide security, those attending included Earl W. Brian, who was identified as "being with the CIA," and Michael Riconosciuto. - RLF



US Deputy Attorney General Jensen Lost Once To Inslaw


Could It Be He Wanted to Even The Score? At the time of its inception, PROMIS was the most powerful program of its type. But a similar program, DALITE, was developed under another LEAA grant by D. Lowell Jensen, the Alameda County, Calif., District Attorney. In the mid-1970s, the two programs vied for a lucrative Los Angeles County contract and Inslaw won out.

Early in his career, Attorney General-to-be Edwin Meese worked under Jensen at the Alameda County District Attorney's office. Jensen was later appointed as Deputy Attorney General into Meese's Justice Department.

C. Madison "Brick" Brewer, accused by the House Judiciary Committee of deliberately misappropriating PROMIS, testified in federal court that everything he did regarding Inslaw was approved by D. Lowell Jensen, the same man who once supervised DALITE.



Was Israel's PROMIS to Crush the Infitada?


Asked why Israeli intelligence would have been so interested in Inslaw and PROMIS, ex-Israeli spy Ari Ben Menashe said: "PROMIS was a very big thing for us guys, a very, very big thing ... it was probably the most important issue of the '80s because it just changed the whole intelligence outlook. The whole form of intelligence collection changed. This whole thing changed it." Why? PROMIS, Ben Menashe said, was perfect for tracking the Palestinian population and other political dissidents.



Did Oliver North Use PROMIS?


Apparently, Israel was not the only country interested in using PROMIS for internal security purposes. Lt. Col. Oliver North also may have been using the program. According to several intelligence community sources, PROMIS was in use at a 6,100-square-foot command center built on the sixth floor of the Justice Department. According to both a contractor who helped design the center and information disclosed during the Iran-Contra hearings, Oliver North had a similar, but smaller, White House operations room that was connected by computer link to the DOJ's command center.



Who Fired Inslaw's Lawyer?


As the Inslaw-DOJ battle was joined in bankruptcy court, Inslaw's chief attorney, Leigh Ratiner, was fired from Dickstein, Shapiro & Morin, the firm where he had been a partner for 10 years. His firing came after another Dickstein partner, Leonard Garment, met with Arnold Burns, then- deputy attorney general of the DOJ.

Garment was counsel to President Richard Nixon and assistant to President Gerald Ford. He testified before a Senate inquiry that he and Meese discussed the Inslaw case in October 1986, and afterward he met with Burns. Two days later Ratiner was fired.

The terms of the financial settlement between Ratiner and his firm were kept confidential, but WIRED has been told by ex-Israeli spy Ari Ben Menashe that Israeli intelligence paid to have Ratiner fired, and that the money was transferred through Hadron Inc., the same company that Earl Brian used to distribute illegal copies of PROMIS. Through informed sources, WIRED has independently confirmed portions of Ben Menashe's allegations.

Ben Menashe has told WIRED that he saw a memo in Israel, written in Hebrew, requesting funds for "a lawyer." He claims to have seen the memo at the office of a joint Mossad (Israeli CIA), Internal Defense Forces and Military committee specializing in Israeli-Iran relations. Israel admits that Ben Menashe handled communications at this level and therefore would have had access to such transmissions.

Ben Menashe said the money was used as Ratiner's settlement payment. "The money was transferred, $600,000, to Hadron," he said. As to why Hadron was used, Ben Menashe claims: "Because [Brian] was involved quite deeply." He said Ratiner was unaware of the source of the settlement funds.

Ratiner, contacted after the Ben Menashe interview, said he had never disclosed the amount of the separation settlement to anyone. He is limited contractually by his former firm from discussing any specifics of the firing. Asked if Ben Menashe's figures were correct, Ratiner said, "I can't comment because it would be the same as revealing them." WIRED located a deep background source who confirmed that the amount was "correct almost to the penny."

Ratiner said he was shocked at the allegations of money laundering. "Dickstein, Shapiro is the 10th largest firm in Washington and I had no reason to think it was other than reputable," he said. "Why is it that everyone who comes in contact with the Inslaw case becomes a victim?" - RLF



A Dead Journalist Raises Some Eyebrows


Among the many strong conclusions of the "House Judiciary Committee Report on the Inslaw Affair" was this rather startling and brief recommendation: "Investigate Mr. Casolaro's death."

Freelance reporter Danny Casolaro spent the last few years of his life investigating a pattern which he called "The Octopus." According to Casolaro, Inslaw was only part of a greater story of how intelligence agencies, the Department of Justice and even the mob had subverted the government and its various functions for their own profit.

Casolaro had hoped to write a book based on his reporting. His theories, which some seasoned investigative journalists have described as naive, led him into a Bermuda Triangle of spooks, guns, drugs and organized crime. On August 10th, 1991, he was found dead in a Martinsburg, W. Va., hotel room. Both wrists were deeply slashed.

Casolaro's death has only deepened the mystery surrounding Inslaw. Among the more unusual aspects of his death: He had gone to Martinsburg to meet an informant whose name he never revealed. He had called home the afternoon before his death to say he would be late for a family gathering. Martinsburg police allowed his body to be embalmed before family members were notified and warned hotel employees not to speak to reporters. The hotel room was immediately scrubbed by a cleaning service. Casolaro had told several friends and his brother that if anything ever happened to him, not to believe it was an accident. And his notes, which witnesses saw him carry into the hotel, were missing.

His death was ruled a suicide by Martinsburg and West Virginia authorities several months later. Friends, relatives and some investigators still cry foul.

A source close to retired Federal Judge Nicholas Bua (the Bush Administration appointee who is investigating Inslaw) said Bua will not come to any conclusions regarding Casolaro's fate. "I don't know if he committed suicide or if it was murder," the source said. "But the evidence is consistent with both theories. There are things that bother me but ... certainly no one can be indicted on the evidence that is available."

What does that mean? Either an independent investigation drums up more evidence, or the case may never be solved.

The House Judiciary Committee may have written what could be called the final word on Danny Casolaro's inexplicable death: "As long as the possibility exists that Danny Casolaro died as a result of his investigation into the Inslaw matter, it is imperative that further investigation be conducted." - RLF



InslawGate?


Elliot Richardson, President Nixon's former attorney general (he was fired when he refused to fire Archibald Cox during the Watergate scandal) has been a counsel to Inslaw for nearly 10 years (he retired this January). In a Oct. 21, 1991 New York Times Op Ed, Richardson wrote: "This is not the first time I have had to think about the need for an independent investigator. I had been a member of the Nixon Administration from the beginning when I was nominated as Attorney General in 1973. Confidence in the integrity of the Watergate investigation could best be insured, I thought, by entrusting it to someone who had no prior connection to the White House. With Inslaw, the charges against the Justice Department make the same course even more imperative.

"When the Watergate special prosecutor began his inquiry, indications of the President's complicity were not as strong as those that now point to a broad conspiracy implicating lesser Government officials in the theft of Inslaw's technology."



A Well-Covered Coverup?


The House Committee Report contained some no-holds-barred language on the issue of stonewalling:

"One of the principle reasons the committee could not reach any definitive conclusion about Inslaw's allegations of a high criminal conspiracy at Justice was the lack of cooperation from the Department," the report states. "Throughout the two Inslaw investigations, the Congress met with restrictions, delays and outright denials to requests for information and to unobstructed access to records and witnesses.

"During this committee's investigation, Attorney General Thornburgh repeatedly reneged on agreements made with this committee to provide full and open access to information and witnesses ... the Department failed to provide all the documents subpoenaed, claiming that some of the documents ... had been misplaced or accidentally destroyed."



Rep. Jack Brooks and the House Committee On the Inslaw Case


The string of lawsuits and widening allegations caught the eye of House Judiciary Committee Chairman Jack Brooks, D-Texas, who in 1989 launched a three-year investigation into the Inslaw affair. In the resulting report, the Committee suggested that among others, Edwin Meese, while presidential counselor and later as attorney general, and D. Lowell Jensen, a former assistant and deputy attorney general and now a U.S. district judge in San Francisco, conspired to steal PROMIS.

"There appears to be strong evidence," the report states, "as indicated by the findings in two Federal Court proceedings as well as by the committee investigation, that the Department of Justice 'acted willfully and fraudulently,' and 'took, converted and stole,' Inslaw's Enhanced PROMIS by 'trickery fraud and deceit.' "

"While refusing to engage in good faith negotiations with Inslaw," the report continues, "Mr. Brewer and Mr. Videnieks, with the approval of high- level Justice Department officials, proceeded to take actions to misappropriate the Enhanced PROMIS software."

Furthermore, the report states, "several individuals have stated under oath that the Enhanced PROMIS software was stolen and distributed internationally in order to provide financial gain to Dr. Brian and to further intelligence and foreign policy objectives for the United States."

Rep. Brooks told WIRED that the report should be the starting point for a grand jury investigation. The owners of Inslaw, Brooks said, were "ravaged by the Justice Department ... treated like dogs."



Copyright © 1993-2004 The Condé Nast Publications Inc. All rights reserved.
Copyright © 1994-2003 Wired Digital, Inc. All rights reserved.
PROMIS

by Michael C. Ruppert
© Copyright 2000, 2001. All rights reserved. Michael C. Ruppert and From The Wilderness Publications.
"U.S. journalist Mike Ruppert, a former Los Angeles police officer who now runs a Web site that seeks to expose CIA covert operations, said he met with RCMP investigator McDade on Aug. 3 in L.A. Ruppert said the RCMP officer was anxious to see documents he received three years ago from a shadowy Green Beret named Bill Tyre [sic] detailing the sale of rigged Promis software to Canada." - The Toronto Star, September 4, 2000.
Only the legends of Excalibur, the sword of invincible power, and the Holy Grail, the chalice from which Christ took his wine at the Last Supper begin to approach the mysterious aura that have evolved in the world of secret intelligence around a computer software program named Promis. Created in the 1970s by former National Security Agency (NSA) programmer and engineer Bill Hamilton, now President of Washington, D.C.'s Inslaw Corporation, PROMIS (Prosecutor's Management Information System) crossed a threshold in the evolution of computer programming. Working from either huge mainframe computer systems or smaller networks powered by the progenitors of today's PCs, PROMIS, from its first "test drive" a quarter century ago, was able to do one thing that no other program had ever been able to do. It was able to simultaneously read and integrate any number of different computer programs or data bases simultaneously, regardless of the language in which the original programs had been written or the operating system or platforms on which that data base was then currently installed.
In the mid 1970s, at least as far as computer programs were concerned, the "universal translator" of Star Trek had become a reality. And the realm of Star Trek is exactly where most of the major media would have the general public place the Promis story in their world views. But given the fact that the government of Canada has just spent millions of dollars investigating whether or not a special version of Promis, equipped with a so-called "back door" has compromised its national security, one must concede that perhaps the myths surrounding Promis and what has happened to it need to be re-evaluated. Myths, by definition, cannot be solved, but facts can be understood and integrated. Only a very few people realize how big the Promis story really is.
It is difficult to relegate Promis to the world of myth and fantasy when so many tangible things, like the recently acknowledged RCMP investigation make it real. Canadians are not known for being wildly emotional types given to sprees. And one must also include the previous findings of Congressional oversight committees and no less than six obvious dead bodies ranging from investigative journalist Danny Casolaro in 1991, to a government employee named Alan Standorf, to British Publisher and lifelong Israeli agent Robert Maxwell also in 1991, to retired Army CID investigator Bill McCoy in 1997, to a father and son named Abernathy in a small northern California town named Hercules. The fact that commercial versions of Promis are now available for sale directly from Inslaw belies the fact that some major papers and news organizations instantly and laughably use the epithet conspiracy theorist to stigmatize anyone who discusses it. Fear may be the major obstacle or ingredient in the myth surrounding modified and "enhanced" versions of Promis that keeps researchers from fully pursuing leads rising in its wake. I was validated in this theory on September 23rd in a conversation with FTW Contributing Editor Peter Dale Scott, Ph.D. Scott, a Professor Emeritus at UC Berkeley and noted author. Peter, upon hearing of the details of my involvement, frankly told me that Promis frightened him. Casolaro, who was found dead in a West Virginia motel room in 1991, had Scott's name (Scott is also a Canadian) in a list of people to contact about his Promis findings. He never got that far.
A close examination of the Promis saga actually leads to more than a dozen deaths which may well be why so many people avoid it. And many of those deaths share in common a pattern where, within 48 hours of death, bodies are cremated, residences are sanitized and all files disappear. This was certainly the case with my friend Bill McCoy, a legendary retired Army CID investigator who was also the principal investigator for Hamilton in his quest to recover what may be hundreds of millions in lost royalties and to reunite him with the evolved progeny of his brain child. Those progeny now have names like SMART (Self Managing Artificial Reasoning Technology) and TECH. I will never forget hearing of McCoy's death and his immediate cremation and then trying to reconcile that with the number of times he had told me, while sitting in his Fairfax Virginia home, that he wanted to be buried next to his beloved wife in spite of the fact that he was a Taoist.
I have tried to avoid becoming involved in Promis even though I have been in possession of documents and information about the case for more than six years. Reluctantly, as I realized that recent developments gave me a moral imperative to write, I gathered all of my scattered computer files connecting the case into one place. When assembled they totaled more than seven megabytes and that did not include maybe 500 printed pages of separate files.
In researching this story I found a starkly recurring theme. It appeared first in a recent statement I tape recorded from probably one of the three best informed open sources on the story in the world, William Tyree. I also came across the same theme, almost verbatim, in a research paper that I discovered while following leads from other sources.
Tyree is no stranger to FTW. A former US Army Green Beret, framed in 1979, he has been serving a life sentence for the murder of his wife Elaine outside of Fort Devens Massachusetts, then home of the 10th Special Forces Group. I have written of him in no less than six prior issues of FTW. He has, from his prison cell in Walpole Massachusetts, been a central if little known figure in the Promis case for many years, like a monk mysteriously possessed of information that no one else could obtain. If the story is ever fully told his role may be even more significant than anyone has ever supposed.
The information from Tyree, recorded in a phone conversation on August 28, and the research work on "block-modeling" social research theory uncovered while researching other leads both describe the same unique position or vantage point from hypothetical and actual perspectives. Tyree described an actual physical point in space, further out than ever thought possible and now used by US satellites. This distance is made possible by Promis progeny so evolved that they make the original software look primitive. The social research, which included pioneering mathematical work - apparently facilitating the creation of artificial intelligence - postulated that a similar remote hypothetical position would eliminate randomness from all human activity. Everything would be visible in terms of measurable and predictable patterns - the ultimate big picture. Just one of the key web sites where I found this information is located at http://web.syr.edu/~bvmarten/socialnet.html.
One of FTW's guiding principles is our incessant drive to separate that which is important from that which is merely true. The purpose of this article is to provide leads and insights, some very concrete, for the continued investigation of the Promis saga. While we do not claim to be worthy of pulling Excalibur from the stone we do hope to be divorced enough from egotistical motivations and dreams of Pulitzers or glory to avoid being led into the trap that has befallen so many seeking the Holy Grail. FTW believes that the Promis story will only be solved by a group of people working together selflessly for a greater good. Maybe there is legend here after all. Put simply, from the vantage point of a child actor in 1970s Burger King commercials, "It's too big to eat!"
What would you do if you possessed software that could think, understand every language in the world, that provided peep holes into everyone else's computer "dressing rooms," that could insert data into computers without people's knowledge, that could fill in blanks beyond human reasoning and also predict what people would do - before they did it? You would probably use it wouldn't you? But Promis is not a virus. It has to be installed as a program on the computer systems that you want to penetrate. Being as uniquely powerful as it is this is usually not a problem. Once its power and advantages are demonstrated, most corporations, banks or nations are eager to be a part of the "exclusive" club that has it. And, as is becoming increasingly confirmed by sources connected to this story, especially in the worldwide banking system, not having Promis - by whatever name it is offered - can exclude you from participating in the ever more complex world of money transfers and money laundering. As an example, look at any of the symbols on the back of your ATM card. Picture your bank refusing to accept the software that made it possible to transfer funds from LA to St. Louis, or from St. Louis to Rome.
The other thing to remember is that where mathematics has proved that every human being on the earth is connected to every other by only six degrees of separation, in covert operations the number shrinks to around three. In the Promis story it often shrinks to two. It really is a small world.
The First Rip Off
Reagan confidant and overseer for domestic affairs from 1981 to 1985 Ed Meese loved Promis software. According to lawsuits and appeals filed by Hamilton, as well as the records of Congressional hearings, the FBI and dozens of news stories, the legend of Promis began in 1981-2. After a series of demonstrations showing how well Promis could integrate the computers of dozens of US attorneys offices around the country, the Department of Justice (DoJ) ordered an application of the software under a tightly controlled and limited license. From there, however, Meese, along with cronies D. Lowell Jensen (also no stranger to FTW's pages) and Earl Brian allegedly engaged in a conspiracy to steal the software, modify it to include a "trap door" that would allow those who knew of it to access the program in other computers, and then sell it overseas to foreign intelligence agencies. Hamilton began to smell a rat when agencies from other countries, like Canada, started asking him for support services in French when he had never made sales to Canada.
The Promis-managed data could be anything from financial records of banking institutions to compilations of various records used to track the movement of terrorists. That made the program a natural for Israel which, according to Hamilton and many other sources, was one of the first countries to acquire the bootlegged software from Meese and Company. As voluminously described by Inslaw attorney, the late Elliot Richardson, the Israeli Mossad under the direction of Rafi Eitan, allegedly modified the software yet again and sold it throughout the Middle East. It was Eitan, the legendary Mossad captor of Adolph Eichmann, according to Hamilton, who had masqueraded as an Israeli prosecutor to enter Inslaw's DC offices years earlier and obtain a first hand demonstration of what the Promis could do.
Not too many Arab nations would trust a friendly Mossad agent selling computer programs. So the Mossad provided their modified Promis to flamboyant British publishing magnate Robert Maxwell, a WWII Jewish resistance fighter who had assumed the Anglo name and British citizenship after the war. It was Maxwell, capable of travelling the world and with enormous marketing resources, who became the sales agent for Promis and then sold it to, among others, the Canadian government. Maxwell drowned mysteriously in late 1991, not long after investigative reporter Danny Casolaro was "suicided" in West Virginia. Maxwell may not have been the only one to send Promis north.
In the meantime, after winning some successes, including a resounding Congressional finding that he had been cheated, Bill Hamilton hit his own buzz saw in a series of moves by the Reagan and Bush Justice Departments and rigged court decisions intended to bankrupt him and force him out of business. He survived and fought on. In the meantime hundreds of millions of dollars in royalties and sales fees were going into the wrong pockets. And, as was later revealed from a number of directions, this initial tampering with the software was far from the only game in town. Both the CIA, through GE Aerospace in Herndon Virginia (GAO Contract #82F624620), the FBI and elements of the NSA were tinkering with Promis, not just to modify it with a trap door, but to enhance it with artificial intelligence or AI. It's worth it to note that GE Aerospace was subsequently purchased by Martin-Marietta which then merged to become Lockheed-Martin the largest defense and aerospace contractor in the world. This will become important later on.
Confidential documents obtained by FTW indicate that much of the AI development was done at the Los Alamos National Laboratory and Sandia Labs using research from other US universities, including Harvard, Cal-Tech and the University of California. And it was not just Reagan Republicans who got their hands on it either. As we'll see shortly, Promis came to life years before the election of Ronald Reagan. It was also, according to Bill Tyree, an essential element in the espionage conducted by Jonathan Pollard against not only the US government but the Washington embassies of many nations targeted by Israel's Mossad.
The Last Circle
For more than a year and half, members of the National Security Section of the Royal Canadian Mounted Police (RCMP) have been travelling through the US, often in the company of a savvy female homicide detective from the small California town of Hercules named Sue Todd. Even now questions linger as to what the Canadians were really after. But there is absolutely no question that while surreptitiously in the U.S. the Mounties spent more time with author and investigative reporter Cheri Seymour than with anyone else. And for good reason.
Seymour, under the pen name of Carol Marshall is the author of a meticulously researched e-book entitled The Last Circle located at http://www.lycaeum.org/books/books/last_circle/. So meticulously researched and documented is the book that FTW's researcher "The Goddess" has fact checked it and found it flawless. Same with Bill Hamilton and the Mounties, who have also told me of its precision. Anyone seeking to understand the Promis story must include this book as a part of their overall research.
I first met Cheri in person this spring after she had contacted me via the Internet. I traveled to her home, some three hours outside of Los Angeles and viewed acres of documentation for a saga that started with drug related murders and police corruption around methamphetamine production in northern California in the 1980s. That investigation later connected to politicians like Tony Coelho and major corporations like MCA and eventually led to a shadowy scientist named Michael Riconosciuto. Familiar names like Ted Gunderson and relatively unknown names like Robert Booth Nichols weave throughout this detailed epic that takes us to the Cabazon Indian Reservation in the California Desert and into the deepest recesses of the 1980s Reagan/Bush security apparatus.
Gunderson, a retired FBI Special Agent in Charge (SAC) from Los Angeles, and Nichols, a mysterious Los Angeles man, exposed through court documents obtained by Seymour as being a career CIA operative, connected with scientist/programmer, Riconosciuto in a sinister, yet now very well documented phase of Promis' development. In affidavits Riconosciuto claimed that one of the tasks he performed at the Cabazon reservation was to install a back door in the version of Promis that was sold to Canada. In August of this year the RCMP investigators told both Seymour and me that they had traveled to the reservation several times and had confirmed many details of Seymour's research. They had also interviewed Riconosciuto on more than one occasion. As with everyone else I have ever met who has spoken with him, both the Mounties and Seymour kept a reserved distance from him and always "counted their fingers after every hand shake."
By using treaties between the U.S. Government and Native American peoples that recognize Native American reservations as sovereign nations, the CIA has long and frequently avoided statutory prohibitions against operating inside the United States. The financial rewards for tribal nations have been significant and the extra security afforded by tribal police in remote areas has been a real blessing for covert operatives. The Last Circle describes in detail how Promis software was modified by Riconosciuto to allegedly include the back door "eavesdropping" capability but also enhanced with one form of AI and subsequently applied to the development of new weapons systems including "ethnospecific" biowarfare compounds capable of attacking specific races. Riconosciuto, now serving time in a Federal prison in Pennsylvania has a cell a very short distance from fellow espionage inmates Edwin Wilson and Jonathan Pollard. While his tale is critical to understanding what has happened to Promis, the fact remains that Riconosciuto has been out of the loop and in legal trouble for eight years. He has been in a maximum security prison for at least six. What was surprising was that in 1998 he contacted homicide detective Sue Todd in Hercules and told her that the murder of a father and son, execution style, was connected to the Promis story. One connection was obvious. Hercules is a "company town" connected to a weapons manufacturer described in Seymour's book that also connects to the Cabazon Indian Reservation.
The Three Bills
I lived in Washington, D.C. from August 1994 until late October of 1995. It was during that time that I was a semi-regular visitor at the Fairfax, Virginia home of Bill McCoy, a loveable sixty-something giant, always adorned with a beret who complained ruthlessly about what had happened to the United States since "The Damned Yankee Army" had taken over. Writers were "scribblers." People who thought they knew something about covert operations without ever having seen one were "spooky-groupies." "Mac," as we called him, had his investigative fingers in almost everything but he was most involved with Promis. McCoy was a retired Chief Warrant Officer from the U.S. Army's Criminal Investigation Division. He had broken some of the biggest cases in Army history. It was Mac who first introduced me to both Bill Tyree and to Bill Hamilton in 1994. I recall scratching my head as I would be sitting at Mac's dinner table when a call would come in from Hamilton asking if there was any new information from Tyree. "Not yet, " McCoy would answer, "I'll call as soon as I get something."
"How," I asked, "could a guy in a maximum security prison like Walpole State Penitentiary in Massachusetts be getting information of such quality that someone like Hamilton would be calling urgently to see what had come in?" "That," answered McCoy was the work of someone known only as "The Sergeant Major," and alternately as "His Eminence" who fed the information to Tyree, who in turn fed it to McCoy, who then passed it on to Hamilton. Sometimes however, Tyree and Hamilton communicated directly. To this day the identity of the Sergeant Major remains a mystery and the puzzle piece most pursued by the RCMP when they visited me in August, 2000.
It was also not by coincidence then that, in the same winter of 94-95, McCoy revealed to me that he was using former Green Berets to conduct physical surveillance of the Washington, D.C. offices of Microsoft in connection with the Promis case. FTW has, within the last month, received information indicating that piracy of Microsoft products at the GE Aerospace Herndon facility were likely tied to larger objectives, possibly the total compromise of any Windows based product. It is not by chance that most of the military and all of the intelligence agencies in the U.S. now operate on Macintosh systems.
In late 1996 Tyree mailed me a detailed set of diagrams and a lengthy narrative explaining the exact hows and whys of the murder of Danny Casolaro and an overall view of the Promis saga that is not only consistent with what is described by Seymour in The Last Circle but also provides many new details. Asked about Mike Riconosciuto for this story Tyree would say only that, "He's very good at what he does. There are very, very few who can touch him, maybe 200 in the whole world. Riconosciuto's in a class all by himself." Those documents, as later described to me by RCMP Investigator Sean McDade, proved to be "Awesome and right on the money."
The essence of those documents was that, not only had the Republicans under Meese exploited the software, but that the Democrats had also seen its potential and moved years earlier. Nowhere was this connection more clearly exposed than in understanding the relationship between three classmates from the U.S. Naval Academy: Jimmy Carter, Stansfield Turner (Carter's CIA director), and billionaire banker and Presidential kingmaker (Carter's Annapolis roommate), Arkansas' Jackson Stephens. The Tyree diagrams laid out in detail how Promis, after improvement with AI, had allegedly been mated with the software of Jackson Stephens' firm Systematics. In the late seventies and early eighties, Systematics handled some 60-70% of all electronic banking transactions in the U.S. The goal, according to the diagrams which laid out (subsequently verified) relationships between Stephens, Worthen Bank, the Lippo Group and the drug/intelligence bank BCCI was to penetrate every banking system in the world. This "cabal" could then use Promis both to predict and to influence the movement of financial markets worldwide. Stephens, truly bipartisan in his approach to profits, has been a lifelong supporter of George Bush and he was, at the same time, the source of the $3 million loan that rescued a faltering Clinton Campaign in early 1992. There is a great photograph of Stephens with a younger George "W" Bush in the excellent BCCI history, False Profits.
In the fall of 1997, Bill McCoy, having recently gone off of his heart medication was found dead in his favorite chair. In the days and weeks before he had been advised by Tyree that a Pakistani hit man, on an Israeli contract had been in the states seeking to fulfill a hit on McCoy. There had been other hints that someone closer to McCoy might do the job. Tyree recently told FTW that just before his death, he had given McCoy information on "Elbit" flash memory chips, allegedly designed at Kir Yat-Gat south of Tel Aviv. The unique feature of the Elbit chips was that they worked on ambient electricity in a computer. In other words, they worked when the computer was turned off. When combined with another newly developed chip, the "Petrie," which was capable of storing up to six months worth of key strokes, it was now possible to burst transmit all of a computer's activity in the middle of the night to a nearby receiver - say in a passing truck or even a low flying SIGINT (Signals Intelligence) satellite. According to Tyree this was the methodology used by Jonathan Pollard and the Israeli Mossad to compromise many foreign embassies in Washington.
Within 48 hours of his death Bill McCoy had been cremated and in less than four days all of Mac's furniture, records and personal belongings had been removed from his home by his son, a full Colonel in the Army. The house had been sanitized and repainted and, aside from the Zen garden in the back yard, there was no trace that McCoy had ever lived there.
Harvard and HUD
Former Assistant Secretary of Housing, Catherine Austin Fitts has had about as much ink in FTW as anyone else. A feisty, innovative thinker she has seen raging success as a Managing Director of the Wall Street investment bank Dillon Read and she has been "nuked" into near poverty after devising software strategies seeking to optimize financial data and returns for the US taxpayer. While acting as a HUD consultant in 1996, selling defaulted HUD Mortgages into the private market through her own investment bank, Hamilton Securities (no relation), she achieved unheard of taxpayer returns of around 90 cents on the dollar. In doing so she ran afoul of an entrenched Washington financial power structure feeding uncompetitively at the HUD trough.
Last month we described how Fitts devised a data optimization method using hand coding by residents of a HUD Housing project in Washington to produce Promis-like results. She successfully "mapped" the flow of HUD money and was about to create proprietary software that would make the job easier. That software would have integrated billions of pieces of disorganized HUD financial data. Suddenly, in August 1996, DoJ and HUD Inspector's General investigations started that seized her computers and resulted in a four-year blatantly illegal campaign to crush everything she stood for. No charges were ever brought.  Fitts, her money and her data are still viciously separated.
One of the empires Fitts threatened was that of the Harvard Endowment. The Harvard Endowment is not really a benevolent university fund but an aggressive investment predator with $19 billion in assets, some from HUD subsidized housing. Harvard also has a number of other investments in high tech defense operations and had a big hand in investing George W. Bush's lackluster firm Harken Energy. "W" has a Harvard MBA. Fitts' chief nemesis at Harvard, Herbert "Pug" Winokur, head of Capricorn Investments, and member of the board of the Harvard Endowment is also a Ph.D. mathematician from Harvard where the mathematical breakthroughs that gave rise to Artificial Intelligence using block-modeling research were discovered. In the 60s Winokur had done social science research for the Department of Defense on causes of inner city unrest in the wake of the 1967 Detroit riots.
The pioneering research at Harvard that allegedly gave rise to the Artificial Intelligence installed in Promis later moved north. According to a Harvard website (www.analytichtech.com/mb119/chap2e.htm) "Much of the effort of the Harvard group - no longer based solely at Harvard - was centered on the International Network for Social Network Analysis (INSNA) at Toronto...". Things grew more suspicious as Fitts' research disclosed that Winokur, through Capricorn Investments, had a decisive role in the 1980s management of the intelligence/government outsourcing mega-firm DynCorp, of Reston, VA. Winokur served as DynCorp CEO from 1989 to 1997. DynCorp handles everything for Uncle Sam from aircraft maintenance, to sheep-dipping of combat troops into private assault forces in Colombia, to the financial management of HUD records, to the maintenance of computer security at government facilities. One of DynCorp's most interesting contracts is with the DoJ for the financial management of assets seized in the drug war. DynCorp also counts among its shareholders former CIA Director James Woolsey. Pug Winokur made DynCorp what it is today and he still sits on the board.
In juxtaposition, Harvard and HUD differ in one striking respect according to Fitts. The Harvard Endowment has enjoyed wildly uncharacteristic above market tax-free returns for the last decade, (33% in 1999), while HUD, in the same year, was compelled to do a "manual adjustments" to reconcile a $59 billion shortfall between its accounts and the U.S. Treasury account. [This is not a typographical error]. Where did all that money go? $59 billion in an election year is a staggering amount of money. Why is no one screaming? HUD's explanation is that it was loading a new accounting system that did not work and then did not bother to balance its checkbook for over a year.
I was not surprised when Bill Hamilton confirmed to both Fitts and to me that Winokur's DynCorp had played a role in the evolution of Promis in the 1980s. One other surprise was to come out of Fitts' investigations that had months earlier led her to conclude that she was up against Promis-related interests. On the very day that DoJ and HUD shut her down she was discussing software development with a Canadian firm that is at the heart of the Canadian space program, Geomatics. The term Geomatics applies to a related group of sciences - all involving satellite imagery - used to develop geographic information systems, global positioning systems and remote sensing from space that can actually determine the locations of natural resources such as oil, precious metals and other commodities.
Apparently centered in Canada, the Geomatics industry offers consulting services throughout the world in English, German, Russian, French, Arabic, Spanish and Chinese. Geomatics technology, launched aboard Canadian satellites via US, European or Japanese boosters can help developing or industrialized nations inventory and manage all of their natural resources. There are also several Geomatics related companies in the U.S. including one not far from the Johnson Space center in Houston.
This situation is custom made for enhanced Promis software with back-door technology. What better way to map and inventory all of the world's resources than by making each client nation pay for the work. By providing the client nation Promis-based software it would then be possible to compile a global data base of every marketable natural resource. And it would not be necessary to even touch the resources because commodities and futures markets exist for all of them. An AI enhanced, Promis-based program would then be the perfect set up to make billions of dollars in profits by watching and manipulating the world's political climate to trade in, let's say Tungsten futures. Such a worldwide database would be even more valuable if there were, for example, a sudden surge in the price of gold or platinum.
Bill Hamilton readily agreed that this was an ideal situation for the application of Promis technology. In furthering our research on Geomatics we discovered that almost everywhere Geomatics technology went we also found Lockheed-Martin.
Enter The Mounties
Thanks to a strong push in my direction from Cheri Seymour, the Mounties and Hercules PD Homicide Detective Sue Todd arrived at my door on August 3rd. They had already consumed most of the FTW web site and were well familiar with my writings. I had let them know, through Cheri, that I did have information on Promis from Bill Tyree and that I would be happy to share it. Before getting into details we all went out for lunch at a nearby Chinese restaurant.
In setting basic outlines for our conversations that day I indicated that, as a journalist, I viewed our discussions as off-the-record. I took no notes and did not tape record any of the discussion. I am recounting the events now only after corresponding with McDade and advising him of my intention to write. He responded and did not object. I took the same position with Detective Todd. I warned the Mounties and Todd at the outset that a sudden termination of their investigations was likely and that they would all become expendable. It happened to me once.
Over lunch the Mounties were quite candid about the fact that the RCMP had Promis software and that it even went by the name Promis. I think they may have also mentioned the name PIRS which is an acknowledged system in the RCMP network. They stated that they had been given their version of Promis by the Canadian Security and Intelligence Service (CSIS).
CSIS was an intelligence breakaway from the Mounties in 1984, intended to be a pure [sic] intelligence agency. It was created largely with the expertise and assistance of the CIA. All of us understood two things about that arrangement and we discussed them openly. First, there was a question as to whether or not any intelligence service created by the CIA could be completely loyal to its native country. Secondly, it was also understood that there was a rivalry between the two agencies similar to the one that existed between the FBI and the CIA, or in a larger context, the Clinton gang and the Bush gang in the US. The chief concern of the Mounties, clearly, was to ascertain whether or not their version of Promis was one that was compromised. McDade also described in detail how he knew that supposedly secure RCMP communications equipment had been compromised by the NSA. The Mounties acknowledged regular meetings with Cheri Seymour but evinced none of the interest she said that they had previously shown in the Mossad. With me their single-minded focus was Bill Tyree and where and how he obtained his information.
Sue Todd, confirmed for me suspicions that there was an unspoken alliance between the RCMP investigators and the FBI. She said that during the course of her three years of efforts to solve the double murder in Hercules, she had routinely visited FBI offices and enjoyed access to FBI files relative to both the Promis investigation and anything connected to her victims. That information was obviously being shared with the Mounties and that implied the blessings of the FBI. In short, a domestic law enforcement officer was sharing information with agents of a foreign government. In some cases that could provoke espionage charges but in this case it was apparently sanctioned. The Hercules murder victims had no apparent connection to Promis software in any way except for the fact that Riconosciuto had possessed knowledge about the murders which he had provided to Todd from prison. The Hercules Armament Corporation, featured in The Last Circle, was an obvious link. I also noted that the father in Todd's case had been a computer engineer with passions for both geological research and hypnosis and no other visible connections to the Promis story.
As we copied Tyree's papers and went through other materials the next day I was aware that the Canadians expressed special interest in Jackson Stephens and anything having to do with the manipulation of financial markets. They asked for copies of news reports I had showing that General Wesley Clark, the recently retired NATO Commander, has just gone to work for Stephens, Inc. in Little Rock Arkansas. I also provided documents showing that Stephens' financial firm Alltel, heir to Systematics, was moving heavily into the mortgage market. As the Mounties repeatedly pressed for information on the identity of the Sergeant Major I referred them to Tyree directly through his attorney Ray Kohlman and to Tyree's closest friend, the daughter of CIA bagman and paymaster Albert Carone, Dee Ferdinand. [For more on Carone visit the FTW web site].
McDade did eventually contact Ferdinand by phone and shortly thereafter one of the most bizarre twists in the whole story took place.
About a week after meeting the Mounties I heard back from Sean that the Tyree documents and flow charts from 1996 had been right on the money. A special recurring theme in those documents that meshes with Seymour's research is the fact that modified versions of Promis software with both artificial intelligence and trap doors were being smuggled out of Los Alamos nuclear labs in containers labeled as radioactive waste. According to Tyree and other sources, after an Indian reservation, the safest place in the world that no one will ever break into is a nuclear waste dump. This also applies to containers in transit between countries. The radioactive warning label guarantees unmolested movement of virtually anything. Promis software is apparently no exception.
Bill Casey and Al Carone from the Grave
Albert Vincent Carone has also been covered exhaustively in FTW, both in the newsletter and on the web site. A retired NYPD Detective, also a made-member of the Genovese crime family, Carone spent his entire working career as a CIA operative. (FTW has special reports on both Bill Tyree and Al Carone available from the web site or at the end of this newsletter). For more than 25 years before his mysterious death in 1990, Al Carone served as a bagman and liaison between George Bush, CIA Director Bill Casey, Oliver North, Richard Nixon and many other prominent figures including Robert Vesco, Manuel Noriega and Ferdinand Marcos. The Carone-Tyree connection, covered in detail in the Sept. 1998 issue (Vol. I, No.7) goes back to operations in the mid 1970s when Tyree, serving with the Special Forces, engaged in CIA directed missions for which Carone was the paymaster.
Carone's death from "chemical toxicity of unknown etiology" in 1990 resulted in the sanitizing of all of his military and NYPD records as well as the theft and disappearance of nearly ten million dollars in bank accounts, insurance policies and investments. Virtually overnight, almost every record of Carone disappeared leaving his daughter and her family nearly bankrupt under the burden of tens of thousands of dollars in medical bills. In 1996, Carone's daughter, Dee Ferdinand, discovered that Tyree and Carone had known each other and that Tyree could prove instrumental in helping to restore Carone's lost fortune. Ferdinand filed suit in U.S. District Court this spring seeking to recover pensions, insurance policies and benefits in a case which has no known connection to Promis. I have known Ferdinand and her family for more than seven years. Never once has she mentioned a connection between her father and Promis although she was well familiar with the case from Tyree and conversations with Bill Hamilton. I had referred the Mounties to her because of my belief that she could possibly help identify Tyree's source, the Sergeant Major.
On August 10th, exactly one week after the Mounties came to see me, the DoJ mailed Ferdinand a response to her suit seeking dismissal. Included in the paperwork was a bizarre document, now in FTW's possession, that, by the account of both Ferdinand and her lawyer, had absolutely nothing to do with her case. The document in question was a March 29, 1986 Declaration from CIA Director William Casey, a close friend of the Carone family. Paragraph 6 of that document (prepared for another case) stated, "Two of the documents responsive to Plaintiffs' Request No 1, specifically the one-page letter dated 28 March 1979 and a one-page letter dated 8 January 1980, have been released in the same excised form as they were previously released by the Government of Canada. I independently and formally assert the state secrets privilege for the information excised from these two documents."
Dee Ferdinand called me immediately. The letter had nothing to do with her suit. It mentioned Canada. Canada was not even mentioned in her suit. What was going on?" she asked. "It's blackmail," I answered. "CIA, which is monitoring everything the Canadians do, everything I do, everything you do, knows that I will tell the Mounties of these letters." McDade didn't grasp the concept at first. He was a straight-ahead street cop. But I had been through something similar when serving as the press spokesman for the Perot Presidential campaign in 1992. I explained it to Sean, "Sean, you and I are just the messengers. But I guarantee that at some level of your government the CIA's reference to these letters will scare people to death. It is a reminder that CIA has them."
A week later McDade told me that the dates were indeed significant - very significant. That's all he would say.
FTW has what may be a possible explanation for the dates in question. The President and CIA Director on these dates the letters were written were Jimmy Carter and Stansfield Turner. Aside from the then recent Russian invasion of Afghanistan, a saga in which the Canadian government played a minor role, the largest drama on the world scene was the overthrow of the Shah of Iran in January 1979, the rise of the Ayatollah Khomeini and the seizure of the U.S. Embassy in Teheran later that year. The Canadian government and the CIA worked very closely in Iran, the Canadian Embassy even housing some CIA personnel who had escaped the crowds of students. But that kind of assistance is not something to hide. Another explanation was needed to explain shock waves in Ottawa.
Recently, a source using a code name known to FTW has surfaced with information relating to Promis. In his communiqués he describes the use of Promis software by the Bush family to loot the secret bank accounts of Manuel Noriega and Ferdinand Marcos. Promis is able to do this because funds can be transferred out of accounts without a trace. Remember the trap door? The rule of thumb here is that crooks, especially CIA sponsored crooks, don't usually go to the cops when somebody steals their stolen money. From my personal experience in the era, and direct exposure to two members of the Iranian Royal family, both before and after the overthrow, I am acutely aware that the Shah, then perhaps the richest man in the world, was actually targeted by the CIA. His downfall was no accident. Once worth more than $20 billion, the Shah ended his life a refugee in Egypt. Many of his billions disappeared and the family was very upset about it.
Could the financial power of Promis have been turned loose first through Canada when Carter was President in the US? The Shah did a lot of banking in Canada. We may never know the answer. But if the downfalls of wealthy US supported dictators Noriega and Marcos are any indication the answer is likely, yes. And the Shah was wealthier than both of them put together. Where'd all that money go?
Headlines
On August 25th the Toronto Star broke what was to become a series of stories by Valerie Lawson and Allan Thompson. The cat was out of the bag. Various figures known to have direct connections to Riconosciuto had been virtually dogging the Mounties' every move as they traveled in the US. One even contacted me just days after the Mounties left LA. It was a story that could not be kept under wraps forever. Most of the Star story was accurate. It was going to be difficult for the RCMP to move quietly now. A Reuters story the same day closed with the following paragraphs, "Canada's national counterintelligence agency said in a June report that friendly nations were making concerted efforts to steal sensitive technology and information.
"The Canadian Security Intelligence Service said outsiders were particularly interested in aerospace, biotechnology, chemicals, communications, information technology, mining and metallurgy, nuclear energy, oil and gas, and the environment." That was Geomatics, at the heart of Canada's space program, Canada's flagship space technology. I checked the Star story. There had been no mention of high tech or space related issues. What did Reuters know? In mid September, after receiving confidential source documents related to the case telling me that one version of Promis, modified in Canada was handled through the Canadian firm I.P. Sharp, I got an answer. A quick search on the web revealed that Sharp, a well documented component of the case, had been bought by a Reuters company in the early 90s. Hamilton later told me that he had heard that Reuters possibly had the Promis software. That would explain how they knew about the aerospace connection.
Michael Dobbs of The Washington Post called and asked what I knew. I confirmed that I had met with the Mounties but didn't know much else other than giving them the Tyree flow charts. The Post was never going to tell the truth. Their business was keeping secrets, not revealing them. The Mounties had made waves.
On August 28 the phone rang and it was a collect call from Tyree. "Get a tape recorder and turn it on," he said. Over the course of the next half an hour Tyree, obviously reading from detailed and copious notes, named individuals and companies dealing with Promis software and its progeny. The tape was specific down to naming specific engineers in military and private corporations doing Promis research. Tyree described specific Congressional committees that had been infiltrated with "enhanced" Promis. Tyree described how Promis progeny, having inspired four new computer languages had made possible the positioning of satellites so far out in space that they were untouchable. At the same time the progeny had improved video quality to the point where the same satellite could focus on a single human hair. The ultimate big picture.
Promis progeny had also evolved to the point where neural pads could be attached to plugs in the back of the human head and thought could be translated into electrical impulses that would be equally capable of flying a plane or wire transferring money. Names like Sandia, Cal-Tech, Micron, Tech University of Graz, Oded Leventer and Massimo Grimaldi rolled from his lips as he tore through the pages of notes. Data, such as satellite reconnaissance, could also now be downloaded from a satellite directly into a human brain. The evolution of the artificial intelligence had progressed to a point where animal behavior and thought were being decoded. Mechanical humans were being tested. Animals were being controlled by computer.
Billy saved Canada for last.
"Here's how we fuck Canada," he started. He was laughing as he facetiously described what was coming as some sort of bizarre payback for the War of 1812. Then, placing the evolutions of Promis in context with the Canadian story Tyree asked a question as to why one would really now need to go to all the trouble of monitoring all of a foreign country's intelligence operations. "There's an easier way to get what I want," he said. "I access their banks. I access their banks and I know who does what and who's getting ready to do what," he said. He described how Canada had been provided with modified Promis software which Canada then modified, or thought they had modified, again to eliminate the trap door. That software turned loose in the financial and scientific communities then became Canada's means of believing that they were securing the trap door information from the entities to whom they provided their versions of Promis. But, unknown, to the Canadians the Elbit chips in the systems bypassed the trap doors and permitted the transmission of data when everyone thought the computers were turned off and secure. Tyree did not explain how the chips physically got into the Canadian computers.
"This," Tyree said "is how you cripple everything Canada does that you don't like. And if you want proof I offer you the fact that we toppled the government of Australia in 1980." "[Prime Minister] Gough Whitlam and Nugan Hand [Bank]," I answered. Tyree affirmed. The Labor Government of Whitlam had been suddenly unseated after making nationalistic noise and questioning the role of US intelligence agencies in Australian affairs.
The issue of a coming feud between the dollar and the Euro came up. I suggested that rapidly vanishing support in South America and Europe both were threatening the military operations of "Plan Colombia" and the economic boost it would give the US economy. Tyree jumped in, "If I can put Canada in line and show the Eurodollar, the 'Eurotrash' what I have already done to my neighbor, whom I value to some degree - remember, these are not nice people - these are financial thugs at their worst. So what they are going to do is sit down discreetly and say, 'Look, this is what we did to Canada. Now, would you like us to do this to the European market as well?' Mike, they're not going to think twice about it. A weapon is only good if someone knows what its capability is. Prior to using the atomic bomb it was irrelevant." He continued, "They refer to it as the Nagasaki Syndrome."
After describing in some detail how the financial powers-that-be had gutted American manufacturing productivity through globalization he described a strategy intended to halt any move by the Euro to overshadow the dollar or even compete with it. It was pure economic hostage taking and Canada would be the object lesson. Then, chillingly, he described something familiar to any military strategist. The penetration and looting of HUD was the test bed, the proving ground, the "White Sands" of the Promis economic Atom bomb. Once the CIA and the economic powers-that-be had proven that, over a period of years, they could infiltrate and loot $59 billion dollars from HUD, they knew that they could do it anywhere. Said Tyree, "Then they knew they had what it took to go abroad and create mayhem. It was planned twenty years ago."
It took several days to reach Sean McDade who had been on vacation. I played the Tyree tape for him over an open phone line into RCMP headquarters. He asked me to make a physical copy right away and send it to him. After he had had time to listen to it he cautioned me against sending it anywhere else. I told him that as long as his investigation was active that I would do nothing more than make the standard copies I make of any sensitive documents as a precaution. I could tell that the tape had rattled him. Though I had known from the start that the large and energetic Mountie, whom I believed to be a dedicated an honest man, would never be allowed to ride his case out to the end, I still had hopes. But in my heart I knew that Tyree was right. In all the years he had been feeding me information I had never known him to be wrong and, apparently, neither had Bill Hamilton. I did not send a copy of the tape to Hamilton because I knew how difficult and potentially dangerous McDade's job was going to be now that the press had exposed him. Having been a cop in dangerous political, CIA infested waters I knew what it was like to not know who you could trust.
If keeping the tape quiet would give the Mounties and edge I would do it - but only as long as they had a case.
Sudden Death
Then it was over.
On September 16th the Toronto Star announced that the RCMP had suddenly closed its Promis investigation with the flat disclaimer that it did not have and never did have any version of Bill Hamilton's software. That was as shocking a statement as it was absurd. "The only way that you can identify Promis," said a perplexed Bill Hamilton, "is to compare the code. Sean McDade said that he was not an engineer and couldn't read code so how did he know?" Hamilton was as emphatic as I was that McDade had said that RCMP had Promis. So was Cheri Seymour. I offered a fleeting hope that the Mounties were playing a game, saying that they had terminated the investigation to shake some of the incessant probing that had been taking place around McDade's every move.
I was finally convinced when McDade e-mailed me and said that it was his view that the Mounties did not have any version of Promis and that he had no objections if I decided to write a story. I then agreed with Seymour that, whether they had said so or not, both the Mounties and Sue Todd had left enough visible footprints that it was their intention for us to go public. It might be the only protection they had.
As I had predicted from the start, they had come too close to bigger issues and been shut down ruthlessly. I called Sue Todd who lamented that she was marking her three year homicide investigation, "Closed by the press." Even though she was convincing I had the feeling that she was playing back a rehearsed script. I told her that I was not satisfied with the statements that there was no Promis in the RCMP. I recalled our lunchtime conversation of August 3rd. She agreed with me that the RCMP mission was to determine whether or not RCMP Promis was a stolen or compromised version. She knew that they had it. So did I. I emailed McDade one last time saying that I was going to write it like I remembered it. He never got back to me.
Bill Hamilton added one last twist when he told me in a conversation that the Mounties claimed to have developed their software on their own. That, he said, was nonsense because the Mounties did not have that kind of sophistication or ability. He thought that the RCMP program had been specially prepared FBI. That would explain the role of retired FBI agent Ted Gunderson. Though I didn't tell him at the time I knew that he had obtained that information from Bill Tyree. And Bill Tyree and his provider, the Sergeant Major, are two people that Bill Hamilton and I both have learned to respect.
Diplomacy
Just three days after the Toronto Star announced the abrupt termination of the RCMP investigation the Canada based International Network on Disarmament and Globalization (INDG) posted an electronic bulletin on a speech by former Canadian Ambassador to the US. In an address the night before, less than 48 hours after the termination of the RCMP investigation, Derek Burney, current President of CAE, a Canadian firm manufacturing flight simulators, criticized the U.S. aerospace industry for being overly-protectionist under the guise of national security. In addressing the Aerospace Industries Association of Canada, according to large stories that appeared in CP (Canadian Press) and Toronto's Globe and Mail, Burney was characterized as sounding unusually tough in his criticism of American policy that was freezing Canadian firms out of aerospace contracts. Both stories were ambivalent in that they alternately made Burney sound critical of the U.S. while championing Canadian interests and at the same time weak as he noted that Mexico stood poised under NAFTA to replace Canada as the U.S.'s number one trading partner.
The CP story made two telling observations. It quoted Burney as saying that Canada needed to do more to "preserve and enhance its access to the American market." Then it closed it's story on Burney's speech, advocating a compromise agreement between the US and Canada, by saying that Burney's position "risks being perceived here at home as a sellout or worse."
A close examination of Burney's remarks, published in the INDG bulletin revealed something more like an obsequious surrender rather than a mere sellout. While there were a few tough-talking paragraphs that saved Canadian face, the essence of the speech was that Burney believed that American defense firms, the largest of which is Lockheed-Martin, were poised to transfer the bulk of their contracts to companies in Mexico. Citing Canada's dependence upon access to American avionics and "databases," Burney painted a picture that seemingly left Canada over a barrel. Without access to American technology the Canadian aerospace industry could not function.
Buried deep in the text of Burney's speech we found the following paragraph which is, we believe, the best place to end this story.
"That does not mean that we have to agree with everything Washington does or says or do things exactly as the Americans do. On the contrary, one of the advantages of being a good neighbor and close ally is that we can speak freely and forthrightly to the Americans - provided we have a solid case and are seeking to influence their position and not simply capture a quick headline. And, never forget, it is always more effective to be frank in private. Otherwise your motive can be somewhat suspect."              http://www.american-buddha.com/promis.htm#PROMIS