Government Officials Cashing-in on Military Industrial Complex
Several Lawmakers Invested in L-3 Communications, Maker of Airport Body-Scanning Machines
November 23, 2010Open Secrets - A handful of federal lawmakers are invested in one of the companies behind the controversial full-body scanning machines now in more than 60 U.S. airports. The individual investments are worth thousands, and in some cases tens or hundreds of thousands, of dollars.
According to a Center for Responsive Politics review of the most recent personal financial disclosure filings, eight members of Congress — three Democrats and five Republicans — owned at least $2,000 worth of stock in L-3 Communications, which is one of the two main contractors involved in the full-body scanning machines.
Sen. John Kerry (D-Mass.) disclosed possessing the most stock in L-3 Communications — with a minimum investment of at least $500,000 and a maximum value of $1 million. The L-3 Communications stock is fully owned by his wife, Teresa Heinz, according to federal financial disclosure reports.
Members of Congress file annual personal financial disclosures detailing their assets and liabilities, as well as those of their spouses and dependent children. These forms also allow lawmakers to describe the value of their holdings and debts in broad ranges, so it's impossible to know exactly how much the holdings of Kerry's family, or any other lawmaker's household, are worth.
Republican Reps. Michael Castle (R-Del.) and Michael McCaul (R-Texas) both disclosed possessing between $16,002 and $65,000 worth of L-3 Communications stock in 2009.
And Rep. Judy Biggert (R-Ill.) was the member of Congress with the next most valuable holdings in L-3 Communications, worth between $15,001 and $50,000.
Here is a table of all eight lawmakers whose 2009 personal financial disclosure forms, which were filed in May, noted holdings in L-3 Communications, along with the minimum and maximum value of these holdings, according to the Center's research.
| Name | Value |
|---|---|
| Sen. John Kerry (D-Mass.) | $500,001 to $1,000,000 |
| Rep. Michael Castle (R-Del) | $16,002 to $65,000 |
| Rep. Michael McCaul (R-Texas) | $16,002 to $65,000 |
| Rep. Judy Biggert (R-Ill.) | $15,001 to $50,000 |
| Rep. Ron Klein (D-Fla.) | $1,001 to $15,000 |
| Rep. Robert Scott (D-Va.) | $1,001 to $15,000 |
| Sen. Jon Kyl (R-Ariz.) | $2,173 |
| Rep. Kenny Marchant (R-Texas) | $2,086 |
The government's investment in full-body scanners has broadened since the "underwear bomber's" failed terrorism attempt last Christmas. Days later, L-3 Communications was awarded a $165 million contract for the machines, and another company, RapiScan, was also awarded a $173 million contract.
Both companies have seen significant jumps in their federal lobbying expenses since just a few years ago, and both are employing officials with well-heeled government connections, as OpenSecrets Blog previously reported.For instance, RapiScan utilizes the services of Michael Chertoff, the secretary of Homeland Security under Republican President George W. Bush. And former Republican Sen. Alfonse D'Amato (R-N.Y.) and Linda Daschle, the wife of former Senate Majority Leader Tom Daschle (D-S.D.), are both actively lobbying for L-3 Communications.
Fear Pays: Chertoff, Ex-Security Officials Slammed for Cashing In on Government Experience
November 23, 2010Huffington Post - After last month's plot to send bombs from Yemen to the United States aboard a cargo plane, former U.S. Homeland Security chief Michael Chertoff's whiskerless visage was ubiquitous on cable news. Solemnly warning that the nation needed stronger security procedures, Chertoff patiently repeated his talking points on ABC News's "World News Tonight", "Fox and Friends", CNBC's "Squawk Box" and Bloomberg TV.
Almost unmentioned in these appearances: Chertoff has a lot to gain financially if some of these measures are adopted. Between his private consulting firm, The Chertoff Group, and seats on the boards of giant defense and security firms, he sits at the heart of the giant security nexus created in the wake of 9/11, in effect creating a shadow homeland security agency.
Chertoff launched his firm just days after President Barack Obama took office, eventually recruiting at least 11 top officials from the Department of Homeland Security, as well as former CIA director General Michael Hayden and other top military brass and security officials.
(Chertoff's predecessor at DHS, Tom Ridge, has also parlayed his experience into a lucrative career. Since 2005, he has served on the board of Savi Technology, the primary technology provider for the Pentagon's wireless cargo-monitoring network, and he has served as a senior advisor to TechRadium, Inc., a Texas-based security technology company.)
Chertoff's clients have prospered in the last two years, largely through lucrative government contracts, and The Chertoff Group's assistance in navigating the complex federal procurement bureaucracy is in high demand. One example involves the company at the heart of the recent uproar over intrusive airport security procedures -- Rapiscan, which makes the so-called body scanners. Back in 2005, Chertoff was promoting the technology and Homeland Security placed the government's first order, buying five Rapiscan scanners.
After the arrest of the underwear bomber last Christmas, Chertoff hit the airwaves and wrote an op-ed in The Washington Post advocating the full-body scanning systems without disclosing that Rapiscan Systems was a client of his firm. The aborted terror plot prompted the Transportation Security Agency to order 300 machines from Rapiscan. Yet last spring, the Government Accountability Office reported that,
"It remains unclear whether [the scanners] would have been able to detect the weapon" used in the aborted bombing attempt.
And according to a recent report by DHS's Inspector General, the training of airport screeners is rushed and poorly supervised.
In the past year and a half, $118 million in stimulus funds have been used to buy technology from Rapiscan, but all that money hasn't produced many jobs -- the ostensible purpose of the American Recovery and Reinvestment Act. In fact, it accounts for only 84 positions, according to a HuffPost analysis of government data, meaning roughly $1.4 million was spent to create each job.
Rapiscan has upped its lobbying expenditures in recent years, spending $271,500 so far this year compared to $80,000 five years ago, USA Today reports. As a measure of the firm's influence, one of the honored guests accompanying President Obama on his recent trip to India was Deepak Chopra, the president and CEO of OSI Systems, which owns Rapiscan. India plans to install the scanners at its airports in the wake of the 2008 Mumbai attacks.
Chertoff's role has been strongly criticized by passenger right advocate Kate Hanni, the founder of FlyersRights.org, who opposes the use of the scanners on privacy and health grounds, citing government studies about radiation exposure.
"They're trying to scare the pants off the American people that we need these things," Hanni told The Huffington Post. "When Chertoff goes on TV, he is basically promoting his clients and exploiting that fear to make money. Fear is a commodity and they're selling it. The more they can sell it, the more we buy into it. When American people are afraid, they will accept anything."
Last week, two Republican congressmen took to the floor of the House to blast Chertoff and condemn the TSA's security procedures. Rep. Ron Paul (R-Texas) introduced legislation against the scanning equipment.
"Michael Chertoff!" Paul exclaimed on the House floor, as shown in the video below. "I mean, here's the guy who was the head of the TSA, selling the equipment. And the equipment's questionable. We don't even know if it works, and it may well be dangerous to our health."
The pertinent segment starts around 4:30:
Last Wednesday, Rep. Ted Poe (R-Texas) claimed that Chertoff gave interviews touting the scanners while "getting paid" to sell them. "There is no evidence these new body scanners make us more secure. But there is evidence that former Homeland Security chief Michael Chertoff made money hawking these full body scanners."
WATCH:
Chertoff's firm denies the insinuations and outright accusations, claiming that the group's advisory services work for Rapiscan only lasted for four months last year and that they do not currently represent them. In addition, a Chertoff spokesperson asserted that the group does not lobby, adding:
The Chertoff Group played no role in the sale of whole body imaging technology to TSA. Further, Secretary Michael Chertoff was in no way compensated for his public statements, in which he has consistently expressed long held beliefs in the deployment of effective technologies and techniques that eliminate security vulnerabilities such as those illustrated last year during the terrorist attempt on Christmas Day.
Rapiscan issued the following statement:
In 2009, Rapiscan Systems briefly engaged Chertoff Group, led by Michael Chertoff, as a consultant. During this period, Mr. Chertoff was a private citizen and regularly engaged in consulting activities for multiple clients. In that engagement, Mr. Chertoff and his staff of experts provided Rapiscan with advice and analysis with respect to a limited set of well-defined subjects unrelated to aviation security. Chertoff Group's activities in that engagement were advisory, and neither Mr. Chertoff nor his staff has ever represented Rapiscan in any communications with the U.S. government.
The only other company that manufactures such scanners, L-3 Systems, has spent more than $1.4 million on lobbying the government since 2004 — one of its best-connected lobbyists is Linda Daschle, wife of ex-Senate Majority Leader Tom Daschle (D-S.D.), earning almost $100,000 in fees for working on "matters related to advanced imaging technology," reports The Hill.
Chertoff's advocacy helped derail a bill proposed by Rep. Jason Chaffetz (R-Utah) which would have limited the use of scanners at airports. Though it sailed through the House, it flailed in the Senate after Umar Farouk Abdulmutallab's failed bombing attempt.
"But I also routinely heard that 'Secretary Chertoff believes this is the right thing to do. Who are you to challenge him?'" Chaffetz told USA Today.
Just last month, Chertoff told CNBC,
"The pressure from the public for more efficient screening will hopefully push the government to investment of technology."
The scanning technology can present health risks to passengers by raising radiation exposure, according to an inter-agency report issued last winter. Pregnant women and children should not be scanned, although the radiation they are exposed to is "extremely small," according to the Inter-Agency Committee on Radiation Safety report.
The scanning-technology debate illustrates just one of Chertoff's many financial interests in the security sector. In the recent deal to break up U.S. security firm L-1 Identity Solutions among two top European defense firms, Chertoff was well-positioned: His firm was a strategic adviser to French aerospace and security conglomerate Safran, which paid more than $1.1 billion to acquire L-1's biometrics identification units; and he sits on the board of BAE, the British defense giant which bought L-1's government consulting and intelligence services, as reported by HuffPost's Dan Froomkin earlier this year.
Chertoff, who is a frequent guest on cable news, often touts security proposals and technologies that align with the interests of or are manufactured by his clients. He recently told CNBC that he'd like to see "more investment in bio-security" because "I think we are beginning to lag a little behind in terms of being able to respond to biological threats." The Chertoff Group has invested in BioNeutral, a biotech startup based in New Jersey that is developing technology to combat dangerous microorganisms. In a relatively rare disclosure, Chertoff acknowledged in the interview that "we do represent companies that make sensors and technology of that sort."
The former Homeland Security secretary told CNBC that the country's most pressing need is cybersecurity, describing a nightmare scenario of a digital attack on the country's financial system, air-traffic-control system or the electric grid, emphasizing that the Obama administration "is not moving as far ahead as we would like it to be." Last May, Chertoff played the role of the national security adviser during a simulated electronic attack called Cyber Shock Wave, which was hosted by the Bipartisan Policy Center and funded with donations of up to $150,000 each from General Dynamics Advanced Information Systems, PayPal, Symantec and other firms. Shortly before the simulation, Chertoff told HuffPost blogger Josh Rushing that he can see the U.S. responding to a cyber-attack with military forces —
"Would it be easier to send a group of special forces in and blow the server up?" he asked rhetorically.
Chertoff neglected to mention that his firm assists clients with cybersecurity issues — one of the firm's directors, Brian White, helped create the presidential-directed Cyber Security Center and the Comprehensive National Cyber Security Initiative. One of Chertoff's roles at BAE, the largest defense firm in Europe, is to "help our government and private sector customers develop cyber security solutions," according to the press release announcing his appointment to the board.
Chertoff has long touted the benefits of biometric identification systems — retina and fingerprint scans — stating in 2008 that he doesn't consider them private but more akin to footprints, and that people shouldn't fear the collection and sharing of such information. More recently, he has said that biometric devices are a step in the right direction. Unmentioned in most of these reports is the fact that Chertoff sits on the board of Clear, a new startup that has assumed the assets of Verified Identity Pass, the biometric ID system that charges $179 to allow people to bypass long security lines at the airport. It was picked up at a bankruptcy proceeding for just $6 million by two hedge fund managers.
The Skivvy on Naked Body Scanners
November 7, 2010The Republican Mother - The swirling controversy about the grotesque invasion of privacy for the nation's airline passengers deserves a more thorough analysis. Let's begin with the one statement that answers all earthly questions: Follow the Money.
The Naked Body Scanners are manufactured by the Rapiscan Systems, which employs The Chertoff Group as a consultant to promote sales. If that name is familiar to you, it should be, the President and CEO of The Chertoff Group is none other than former Homeland Security Czar and Secreatry, Michael Chertoff, who first authorized these machines. Chertoff has been criticized by Flyers Rights.org for abusing his former position to promote the scanners.
Let's go back to the Christmas 2009 underwear bombing incident. Umar Farouk Abdulmutallab from Nigeria and on the terror watch list tried to board Flight 253 from the Netherlands to Detroit with absolutely no identification. The Dutch now say that he did have a valid US visa. How does a guy who went to Al-Qaeda summer camp in Yemen get a valid US visa? Eyewitness Kurt Haskell who said he saw the professional man try to convince the ticket counter that he transports poor Sudanese refugees all the time without passports. He says he doesn't know what happened after that, but that there is video of the exchange that is not being released. When Umar's crotch exploded in flame, he appeared as surprised as anyone and did not fight being grabbed and smothered. Here's a really great rundown of this incident from Kurt Haskell, who saw it all go down (emphasis mine):
“Patrick F. Kennedy, an undersecretary for management at the State Department, said Abdulmutallab's visa wasn't taken away because intelligence officials asked his agency not to deny a visa to the suspected terrorist over concerns that a denial would've foiled a larger investigation into al-Qaida threats against the United States.
"Revocation action would've disclosed what they were doing," Kennedy said in testimony before the House Committee on Homeland Security. Allowing Adbulmutallab to keep the visa increased chances federal investigators would be able to get closer to apprehending the terror network he is accused of working with, "rather than simply knocking out one solider in that effort."'
Now it all becomes apparent. Let me detail everything we know about the "Sharp Dressed Man" (SDM).
- While being held in Customs on Christmas Day, I first told the story of the SDM.
- My story has never changed.
- The FBI visited my office on December 29, 2009, and showed me a series of approximately 10 photographs. None were of the SDM. I asked the FBI if they brought the Amsterdam security video to help me identify the SDM, but they acted as though my request was ridiculous. The FBI asked me what accent the SDM spoke in and I indicated that he had an American accent similar to my own. I further indicated that he wore a tan suit without a tie, was Indian looking, around age 50, 6'0" tall and 250-260 lbs. I further indicated that I did not believe that he was an airline employee and that he was not on our flight.
- During the first week of January, 2010, Dutch Military Police and the FBI indicated that over "200 Hours" of Amsterdam airport security video had been reviewed and it "Shows Nothing".
- The mainstream media picked up the "Shows nothing" story, which slanders my story. After visiting my office twice for a flight 253 special, Dateline NBC and Chris Hanson indicated that my story was "Unsubstantiated rumor dispelled as myth" and our story did not air during the tv special.
- On January 2, 2010, I receive a call from a flight 253 passenger who indicated to me that it may be in my best interest to stop talking publicly about the SDM because he believes I am "wrong" in what I saw. He did not make any claim that he saw the SDM boarding gate incident at all. This call was made out of the blue after he made a "revelation" of this event on January 1, 2010. I later discover that this caller has ties to the U.S. Government.
- On January 20, 2009, current Director of the National Counterterrorism Center (NCTC), Michael E. Leiter, made a startling admission. Leiter indicated that: "I will tell you, that when people come to the country and they are on the watch list, it is because we have generally made the choice that we want them here in the country for some reason or another."
- On January 22, 2010, CongressDaily reported that intelligence officials "have acknowledged the government knowingly allows foreigners whose names are on terrorist watch lists to enter the country in order to track their movement and activities."
CongressDaily also reported, citing an unnamed "intelligence official" that Michael E. Leiter's statement on January 20, 2010, reflected government policy and told the publication, "in certain situations it's to our advantage to be able to track individuals who might be on a terrorist watch list because you can learn something from their activities and their contacts."
- On January 22, 2009, ABC News published an article that showed a change of position in the government's official story.
The U.S. government provided no explanation for the reason my story was initially discounted.- The SDM could not be from Al Qaeda. When speaking at the counter in Amsterdam, the SDM said the following "He is from Sudan, we do this all the time." Who is "we"? If it is Al Qaeda, you surely don't make such a statement to an airport security official.
- The SDM could not be from airport security. The SDM did not dress in any security uniform and did not appear to have any security badge. The SDM did not speak with a Dutch accent. The SDM dressed in a suit coat and pants. If the SDM was a higher up security official, he would not have to convince the ticket agent to let Mutallab on the plane without a valid passport. Instead, he would just order her to do it.
- Could the SDM have been a U.S. Government official? He dressed in a suit and not a security uniform. Check. He indicated we do this all the time. Could "we" be the U.S. Government? Check. He spoke English with an American accent. Check. Would he need to convince the ticket agent that this was a normal procedure to allow boarding without a passport? Check. Would he have the ability to obtain such clearance? Check. Could he enter this security area even though he wasn't a passenger? Check. Would the ticket agent likely refer this request to a manager? Check. Would the U.S. Government not want this information public and try to hide it? Check.
- The Amsterdam security video has not been released. A much more minor airport security violation occurred at the Newark New Jersey airport several days after the flight 253 incident. That video was released shortly thereafter.
- Senators Levin and Stabenow, as well as Congressman Dingle, all refuse to discuss the matter with me.
With the information we already knew and the admission from the above referenced Detroit News article, we have evidence and claims made by government officials that the U.S. Government wanted Mutallab to proceed into the U.S. in order to obtain information on other terrorists involved with him. Once we take this statement and add it to my eyewitness account of a "Sharp Dressed Man" escorting Mutallab through the boarding process and allowing him to board without a valid passport we can make the connection that the "Sharp Dressed Man" was a U.S. Government official/agent.
The reasoning behind the following events now becomes very clear:
1. The reason Mutallab got through security despite the numerous warnings for months before our flight.
2. The reason why there have been so many lies from the U.S. Government attempting to discredit my eyewitness account.
3. The reason why the Amsterdam airport security video is being hidden from the public.
4. The reason why the government is proposing a "Failed to Connect the Dots" account of the failure. The truth is too damning.
5. The reason why Mr. Wolf of the Obama administration indicated on the Keith Olberman Show that the White House was investigating a possible "intentional act" from within the U.S. Government as the reason for the Christmas Day attack.
6. The explanation for the cameraman and why he hasn't been identified (Obviously, he was another U.S. Government agent) whose job was to film Mutallab for some governmental purpose.
7. The reason for the lax security after landing, which can be attributed to foreknowledge of the possible suspects involved.
8. The reason for the failure to search or secure the plane and passengers after landing, which can also be attributed to foreknowledge of the possible suspects involved.
9. The corporate media's attempt to bury my eyewitness account.
10. Carl Levin's, Debbie Stabenow's and John Dingle's intentional avoidance of my story and failure to return my calls/emails.
11. Janet Naploitano's statement that "The System Worked". From her point of view it probably did as this WAS PART OF THE SYSTEM!
Ok, I just put all that in because I wanted to get as much detail in this post as possible from an eyewitness (who happens to be a lawyer) to get you asking the question, what bigger operation would be served by dragging an obvious patsy who has spent the requisite amount of time at an Al Qaeda summer camp with a crotch-load of PETN onto a plane?
Almost immediately, Homeland has these naked body scanners on order. And you can bet they listed the underwear bombing as their number one reason for needing to expand the use of these scanners. Besides Rapiscan, only the huge defense contractor L-3 is “TSA approved” to supply these scanners. The TSA ordered 150 naked body scanners at a price tag of $170,000 each. No sweat, the Recovery Act of 2009 paid for the whole thing. Poetic, no? I'm sure The Chertoff Group, consultants to Rapiscan, got their piece of the pie.
As the months passed, it came to light that naked body images were being saved when the pubic were told that they were not. The pubic was also told that the machines were perfectly safe. Many experts in radiation have said that they are not, putting out as much radiation as a ten cat-scans.
As a result, more people have been opting out of these scans. What has been the response? Instead of patting down resisters using the back of the hands, they're now using their fingers to check airline passengers' genitals. Despite this, how are they supposed to tell if a terrorist has explosive powder imbued in their underwear? The point of this is, of course, to dissuade opting out and force more sheeple through the scanners, making Rapiscan and The Chertoff Group more money. Government and business working together-- what's that called? Oh yes, fascism.
Now we've stated the problem, let's go through some of the solutions:
- Stop flying if you're able. I'm sure the next step is Rapiscan scanners at Amtrak depots and bus stations. For now, we should reward those modes of transportation that don't make a mockery of the fourth amendment. Try writing to the heads of the airline companies telling them about your refusal to fly.
- Write a letter to Michael Chertoff, and tell him how you feel. I'm sure he really would like to know. It would seem that his number is unlisted, but perhaps we can contact him through his place of employment:
1110 Vermont Avenue, NW, Suite 1200
Washington, D.C. 20005
Phone: (202) 649-4260
230 Park Avenue South
New York, N.Y. 10003 - Opt out no matter what. They (the DHS-Rapiscan complex) don't want you to opt out. That's why they're increasing the embarrassment factor tenfold. Don't give them the satisfaction.
- Eat a lot of beans before your flight.
- Sing a song — this is a helpful tool to get you through those embarrassing situations. Perhaps someone more lyrical than myself can come up with a a new American folk ballad describing the pat-down in a put-down way. No one can make you feel inferior without your consent, so turn it around on them!
- Be as short as you can get away with to the TSA agents. Make it clear that you despise your loss of liberty. These people need to be made to see that they are traitors to our country.
- The more daring might try to fake bowel incontinence with diapers. Women could wear pads, make them see if its really that time or not.
I hope to do more investigation on the recent cargo plane “bombs” as the facts are not at all lining up with reality. Rapiscan also sells cargo scanners. I'm sure their consultants at The Chertoff Group are getting our new policy toward cargo all lined up for them.
Remember, it's better to die on your feet than live on your knees. And yes, not being able to travel across your own country without having your privates photographed or handled by your government is living on your knees.
Politicians Who Own Stakes in Airport Scanner Companies
November 24, 2010FOXBusiness - So which elected officials own stakes in full-body scanning machines now in more than 60 U.S. airports? And what are those individual investments worth
We still can’t connect the dots to say that, because these Congressmen invested in these tech companies, than, ipso facto, those scanners were then put in place at airports across the country, now the subject of controversy. But the Center for Responsive Politics says it’s done the legwork and after reviewing the most recent personal financial disclosure filings, found eight members of Congress -- three Democrats and five Republicans – who owned at least $2,000 worth of stock in L-3 Communications, which is a government contractor purportedly involved in the full-body scanning machines.The watchdog group says Sen. John Kerry (D-Mass.) owns the most stock in L-3 Communications -- with a minimum investment of at least $500,000 and a maximum value of $1 million. Congressional financial disclosure forms allow Congressmen to report their assets in broad ranges. However, that L-3 Communications stock is owned by his wife, Teresa Heinz, the Center says. It also says that Republican Reps. Michael Castle (R-Del.) and Michael McCaul (R-Texas) “both disclosed possessing between $16,002 and $65,000 worth of L-3 Communications stock in 2009.”
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