Canadian spies were tortured, hanged abroad, says former official

Arthur PorterBy IAN ALLEN | intelNews.org
A handful of Canadian spies were tortured and hanged abroad after they were caught spying, according to a former official previously tasked with overseeing Canada’s intelligence agency. IntelNews has covered before the case of Dr. Arthur Porter, a Cambridge University-educated oncologist is currently in prison in Panama. Porter is awaiting extradition to Canada for allegedly receiving large bribes in connection with his former post as Director General of the McGill University Health Centre in Montréal. According to the state of Quebec, Porter is one of several people who took bribes offered by a Canadian engineering company in return for being awarded a lucrative construction contract at McGill University. The allegations, which were first made by Canadian newspaper The National Post in 2011, prompted Porter to resign from his sensitive post in Canada’s Security Intelligence Review Committee (SIRC), which he had held since 2008. SIRC investigates grievances against the Canadian Security Intelligence Service (CSIS). In order to fulfill his Committee duties, Porter had been given a top-secret security clearance, which gave him access to the CSIS’ most closely held secrets. He has now authored a book, titled The Man Behind the Bow Tie, in which he describes some of the CSIS’ ‘dirty laundry’ in recent years. The imprisoned former official alleges that a handful of Canadian intelligence operatives were caught carrying out espionage in a foreign “country that was not exactly a close friend of Canada”. Porter does not name the country, but says the CSIS spies were apprehended while photographing military hardware, including armored vehicles. The captured spies were eventually “tortured and hanged”, says Porter, adding that “none of these incidents ever made the papers”. The former SIRC committee member seems to imply that the Canadian government opted to withhold the information from the public because the murdered spies had been acting “without the formal approval” of CSIS and were “stretching the limits of their official position” when apprehended by rival counterintelligence operatives. Porter claims that the truth behind the deaths of these operatives were hidden even from their families; in one case, the family of a murdered CSIS operative was told that he “fell off a balcony in Dubai”, says Porter. Andrew McIntosh, National Security Correspondent for Canada’s QMI News Agency, noted earlier this month that Canada’s intelligence community appeared “palpably uncomfortable” when confronted with Porter’s allegations. He and his colleagues were referred by SIRC to CSIS, whose spokesperson, Tahera Mufti, did not respond to emails and telephone calls. Read more of this post

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News you may have missed #883

Oleg KaluginBy IAN ALLEN | intelNews.org
►►Indonesia, Australia renew intelligence ties. Australia and Indonesia have signed a pledge not to use intelligence to harm each other, signaling a resumption in cooperation, which had been suspended after last year’s spy scandal. Australian Foreign Minister Julie Bishop and her Indonesian counterpart, Marty Natalegawa, signed the “joint understanding of a code of conduct” in Nusa Dua, Bali, on Thursday.
►►Ex-KGB general says Russia has already won in Ukraine. Russia has already won “the real victory”​ in Ukraine, according to former KGB general Oleg Kalugin, who is now living in the United States. The “southeast of Ukraine, that’s part of the general battle between the Russians and Ukrainians, but it’s not as crucial as the real victory and pride of Russia —the Crimea, I mean”, he said on Thursday. Kalugin reiterated that he does not believe Russian president Vladimir Putin wants annex another region of the country. “It’s not in the interest of Putin”, Kalugin said. “His position as of today is fairly strong in the country, in his own country, so why put it at risk by moving further?”
►►China says Canadian couple were spies disguised as ordinary citizens. Kevin and Julia Garratt have been accused of stealing Chinese military and national defense research secrets. They were detained on August 4, 2014, but not formally arrested, and China has offered little information on what they are accused of doing. The couple ran a coffee shop near the border with North Korea, worked with Christian groups to bring humanitarian aid into North Korea, and worked to train North Korean Christians inside China. Their detention by China’s State Security Bureau has been seen by Canadian authorities as reprisal for the arrest of Su Bin, a Chinese immigrant to Canada suspected of masterminding the electronic theft of US fighter jet secrets.

Canada bans Chinese reporters over spy concerns

Stephen HarperBy JOSEPH FITSANAKIS | intelNews.org
The office of the prime minister of Canada has banned reporters working for China’s state-owned media from covering the Canadian leader’s official trip to the Arctic, due to concerns that they may be spies. For the past several summers, Canada’s Prime Minister Stephen Harper has undertaken official tours of the Canadian Arctic, in an effort to promote the country’s northern economy and attend military exercises. However, in a move that has raised eyebrows in Ottawa and Beijing, the organizers of the trip have issued a ban on a number of Chinese reporters from joining the Canadian prime minister’s entourage. The Winnipeg Sun reported on Wednesday that the unprecedented step was taken over concerns that the Chinese journalists in question may in fact be intelligence operatives in the service of China. The paper cited a quote by a spokesman from the office of the prime minister, who reportedly told the Québecor Média International news agency that “certain news outlets are no longer welcome” to travel with the prime minister. It appears that the reporters in question include primarily those working for The People’s Daily newspaper and the Xinhua news agency, both of which are owned by the government of China. Two Chinese journalists working for these outlets, Li Xue Jiang, and Zhang Dacheng, caused controversy during Harper’s trip to the Arctic in 2013. The two appeared to show more interest in photographing their fellow journalists and the interior of Canada’s prime ministerial airplane than covering Harper’s trip. Li even wrote an article for the Chinese-language edition of The People’s Daily at the time, in which he mentioned that he had come under suspicion of spying for China, saying that a secretary from the office of the Canadian prime minister had tasked an officer of the Royal Canadian Mounted Police to keep an eye on him. IntelNews readers will recall that in 2012 Canadian reporter Mark Bourrie resigned his post as parliamentary correspondent for Xinhua, accusing the Chinese news agency of running spy operations in Canada. Read more of this post

News you may have missed #881 (Cold War history edition)

Vehicle tracking deviceBy IAN ALLEN | intelNews.org
►►McCarthy-era prisoner tries to overturn espionage conviction. In 1950, Miriam Moskowitz was secretary to Abraham Brothman, an American chemical engineer who was convicted for providing secret industrial information to communist spy Elizabeth Bentley. Moskowitz, who was having an affair with Brothman at the time of his arrest, was convicted of obstructing justice and served two years in prison. Now at age 98, she claims she has discovered evidence that key witness testimony about her role in Soviet espionage was falsified, and wants her conviction thrown out. In 2010, Moskowitz authored the book Phantom Spies, Phantom Justice, about her case.
►►Files show USSR spied on Czechoslovak communist leaders after 1968. The Soviet KGB spied aggressively on senior members of the Czechoslovak Communist Party (KSČ) for two decades following the Prague Spring of 1968, because it mistrusted them. The information on Soviet intelligence activities against the KSČ comes from files in to the so-called Mitrokhin Archive. Vasili Mitrokhin was a KGB archivist, who painstakingly copied tens of thousands of pages of the spy agency’s files prior to defecting to Britain following the dissolution of the USSR.
►►Canada’s spy agency reveals Cold War-era spying equipment. As part of its celebrations for its 30-year anniversary, the Canadian Security and Intelligence Service has released photographs of what it calls “tools of the trade” –gadgets designed to hide or transport secret communication, acquire surreptitious photographs, listen in on private conversations, etc., without detection. The gadgets include Soviet defector Igor Gouzenko‘s gun, a toy truck with a concealment compartment for hiding a microdot reader, a hollowed-out battery used to contain clandestine messages or microfilm, and many others.

Remembering Gouzenko, the defector who triggered the Cold War

Igor GouzenkoBy ANDREW KAVCHAK* | intelNews.org
In 1998, my wife and I moved to downtown Ottawa, the capital of Canada. In 1999, when my first son was born I took several months off work to stay home with him. Every day I would take him to the local park. It was called Dundonald Park, located on Somerset Street, between Bay and Lyon. While my son was enjoying the outdoors and the fresh air in the park, I was routinely distracted by an old brick two-story building across the street. Something very dramatic happened there decades ago. And yet, there was no marker, no plaque, no statue, no monument…nothing. On the way home my son would typically fall asleep in the stroller. And in my free time I began making some phone calls to city officials and federal government offices. What would it take to erect some sort of historic marker to indicate that the first significant international incident of the Cold War happened in downtown Ottawa, so that generations of future Canadians and tourists in the nation’s capital could be informed or reminded of the historic events that transpired here?

The Japanese formally surrendered to General Douglas MacArthur on the deck of the USS Missouri in Tokyo Bay on September 2, 1945. The world assumed that peace and reconstruction would replace war and destruction. However, just three days later, on September 5, Igor Gouzenko, a cypher clerk at the Soviet embassy in Ottawa walked out of the embassy with over 100 secret documents detailing the existence of a vast Soviet espionage network in Canada and other countries of the West. He wanted to expose the Soviet activity and warn the West. He went to the night editor of the Ottawa Journal and provided him with what could have been the scoop of the century, but the night editor told him to come back the next day. He spent the night with his pregnant wife and infant son at their apartment at 511 Somerset Street. The next day he returned to see the day time editor at the newspaper. Read more of this post

News you may have missed #871

Rene GonzalezBy IAN ALLEN | intelNews.org
►►Britain denies visa for Cuban spy freed by US. Rene Gonzalez, one of the so-called “Cuban Five” intelligence agents convicted by the US of spying, has been denied a British visa to attend a London symposium. Gonzalez, who served 13 years in US prison before his release in 2011, had been invited to a two-day conference put on by “Voice for the Five”, an organization that campaigns in support of the convicted Cuban spies. The Cuban state-run newspaper Juventud Rebelde said Gonzales, 55, was denied a visa because British law prohibits entry of a person sentenced to more than four years in prison.
►►Canada fires intelligence analyst over contacts with Russians. Irina Koulatchenko, a 36-year-old who came to Canada as a Russian refugee via Cuba, has been fired by Canada’s financial-intelligence agency, known as FINTRAC. A Canadian Security Intelligence Service probe recommended she not be trusted to do that job, allegedly because “she had had several social encounters with Russian diplomats”. The latter included one she met “at a Cirque du Soleil show, another who was friends with her ex-fiancé and another she bumped into all the time at various social events”.
►►CIA suspected of spying on Congress members. The United States Department of Justice has opened an investigation into Senate aides removing documents from CIA headquarters that they reportedly “weren’t authorized to have”. It turns out, however, that the CIA found this out because they were secretly spying on members of the Senate Intelligence Committee and their staff who were working on a high-profile report on CIA torture of detainees. What is more, Democratic Senator Mark Udall has claimed US President Barack Obama knew of the CIA’s secret monitoring of the Committee.

News you may have missed #856

Communications Security Establishment CanadaBy IAN ALLEN | intelNews.org
►►Expert says Australia spies for the United States. Intelligence expert Professor Des Ball claims Australia is playing a role in America’s intelligence networks by monitoring vast swathes of the Asia Pacific region and feeding information to the US. Dr. Ball says the Australian Signals Directorate –formerly known as the Defence Signals Directorate– is sharing information with the National Security Agency (NSA). He adds that Australia has four key facilities that are part of the XKeyscore program, the NSA’s controversial computer system that searches and analyses vast amounts of internet data.
►►Canada silent on allegations of spying. A spokeswoman for Communications Security Establishment Canada has refused to comment on allegations that the agency mounts foreign operations through Canada’s embassies abroad. German magazine Der Spiegel says Canada is using diplomatic facilities to support surveillance operations in league with key allies the United States, Britain and Australia. The German newsmagazine indicates the Canadian spy agency hosts “Stateroom” sites —a term for covert signals-intelligence gathering bases hidden in consulates and embassies.
►►Russia denies spying on G20 leaders during summit. Russia has denied reports it attempted to spy on foreign powers meeting at the G20 summit in St Petersburg earlier this year, denouncing the allegations as a “clear attempt to divert attention” from revelations concerning the United States’ National Security Agency. Two Italian newspapers claimed on Tuesday that USB flash drives and cables to charge mobile phones that were given to delegates —including heads of state— at the September meeting were equipped with technology to retrieve data from computers and telephones.

Brazil accuses Canada of economic espionage

CanadaBy JOSEPH FITSANAKIS | intelNews.org
The Brazilian government has demanded that Canada explain the role of its intelligence services in “unacceptable” incidents of espionage, which targeted the Latin American country’s Ministry of Mines and Energy. The announcement came just hours after a television report accused Canada of spying on Brazil’s mining and energy sector, allegedly for commercial gain. The report, which aired on O Globo television on Sunday night, said the spying had been carried out by Canada’s Communications Security Establishment Canada (CSEC). Staffed by around 2,200 employees, the CSEC is Canada’s foremost signals intelligence agency, tasked with carrying out communications interception around the world. According to O Globo, the CSEC collected the metadata of emails and calls associated with computer and telephone systems belonging to the Ministry of Mines and Energy. The information allowed Canadian intelligence to effectively map the communications structure of the government Ministry, through a network mapping program codenamed OLYMPIA. O Globo said its report was based on a CSEC PowerPoint presentation titled “Advanced Network Tradecraft”, which was produced in the summer of 2012 and shared with Canada’s allies, including the United Kingdom and the United States. The television station said that the information was based on a batch of documents leaked by former Central Intelligence Agency and National Security Agency technical expert Edward Snowden. Snowden defected from the US last summer and is currently living in Russia, were he has been offered political asylum. The Brazilian television station spoke to Edison Lobao, Brazil’s Mines and Energy Minister, who said that Canada’s primary economic interests in Brazil centered on “the mining sector”, and hinted that the alleged CSEC spying might have “served corporate interests”. Read more of this post

Canada denies reports of spy devices found in military complex

Former Nortel campusBy JOSEPH FITSANAKIS | intelNews.org
The government of Canada has denied media reports that surreptitious listening devices were found in an Ottawa building complex that is currently being prepared to house Canada’s Department of National Defence. Canadian media reported on Monday that the mysterious spy devices were found by workers employed at the former headquarters of Nortel Networks, a Canadian telecommunications company that went bankrupt in 2009. Canada’s conservative government purchased Nortel’s former headquarters in Ottawa in 2011, and has invested close to C$1 billion (US$960 million) on a plan to move the country’s Defence Department to the site. The media reports did not specify whether the alleged eavesdropping devices were installed recently, or whether they date from the time when Nortel was headquartered at the site. In 2009, when the company declared bankruptcy, there were intense rumors that its operations had been harmed irreparably by an aggressive industrial espionage campaign conducted by Chinese hackers. On Monday, Canada’s CTV News reported that the country’s Department of National Defence was considering scrapping plans to move to the former Nortel complex, due to the discovery of the listening devices. On Monday, the Department of National Defence refused to comment directly on the allegations, stating simply that it could not provide “any information regarding specific measures and tests undertaken to secure a location or facility for reasons of national security”. On Tuesday, however, Canadian government officials told The Ottawa Citizen newspaper it had been assured by the Defence Department that “no listening devices” had been found at the former Nortel site. Read more of this post

Canada intelligence agency warns officials of espionage, honey traps

Richard FaddenBy IAN ALLEN | intelNews.org |
Canada’s foremost intelligence agency has authored a publication warning government officials they are as much targets of espionage today as they were during the Cold War. The warning is contained in a 2012 publication titled Far From Home: A Travel Security Guide for Government Officials, penned by the Canadian Security Intelligence Service (CSIS). It is aimed at Canadian diplomats and other federal employees who may, according to CSIS, become the targets of international espionage activities while traveling abroad. A copy of the guide was accessed by the Canadian Press agency under Canada’s Access to Information Act. In a brief forward to the guide, the then Director of CSIS, Richard Fadden, warns readers that international espionage is believed to be “at a level equal to that seen during the Cold War” (intelNews readers will remember Fadden has made similar claims in public before). He adds that Canada remains a “valued target” on the international intelligence scene, due to its sophisticated technology, energy and financial services sectors. Fadden, who left CSIS in May to become Canada’s Deputy Minister of National Defense, goes on to state that Canada is spied on by foreign intelligence agencies because of its “prized political connections” with the United States and its membership in “important international bodies”. In the guidebook, Canadian federal employees are advised to consider the information they carry with them while abroad as “a prized target” and to take conscious steps to protect it. Advice includes being cautious of information shared with taxi drivers, waiters or bar tenders, keeping personal electronic devices under watch at all times, and avoiding the use of hotel safes to store confidential material, as “intrusions are frequently accomplished with the co-operation of [...] hotel staff”. The instructional book, stamped “For Official Use Only”, makes specific mention of “honey traps” —espionage lingo for intelligence collection through sexual seduction. It notes that honey traps often involve clandestine recordings of intimate encounters, which are later used to blackmail or publicly embarrass the target of the espionage operation. Read more of this post

News you may have missed #838 (analysis edition)

Predator droneBy IAN ALLEN | intelNews.org |
►►Delisle spy case barely caused ripples between Canada and Russia. The arrest of Jeffrey Delisle, a Canadian naval officer spying for Russia, did little to discourage Canada from welcoming that country’s defense chief to a Newfoundland meeting of Arctic nations last year. The visit underscored the puzzling lengths to which the Canadian government went to carry on a business-as-usual relationship with the one-time Cold War adversary. Most other planned military contacts between the two nations last year —including participation in the anti-terrorism exercise Operation Vigilant Eagle— also remained curiously normal.
►►Don’t believe the hype on Chinese cyberespionage. Within a day of each other, The Washington Post published a shocking list of US defense programs whose designs have reportedly been stolen by Chinese cyberattacks, and ABC news said the plans for Australia’s spy headquarters were also stolen by Chinese hackers. It makes China sound like a secret-sucking cyber espionage machine, but is that really the case? The knee-jerk interpretation to this disclosure (and others) is that China is a powerhouse of cyber espionage capable of stealing whatever secrets they want and that the US is powerless to stop them. This seems very unlikely.
►►US Predator drone program quietly shifted from CIA to DoD. The White House has quietly shifted lead responsibility for its controversial armed drone program from the CIA to the Defense Department. In a landmark speech last week at National Defense University in Washington, US President Barack Obama offered some clues into the status of the program, opaquely signaling it will now primarily be conducted by the United States military.

Canada spy agency refused to notify Mounties about Russian agent

Jeffrey Paul DelisleBy JOSEPH FITSANAKIS | intelNews.org |
Canada’s main counterintelligence agency opted to keep secret from the Royal Canadian Mounted Police (RCMP) vital information about a Canadian naval officer who spied for Russia. Regular readers of this blog will be familiar with the case of Jeffrey Paul Delisle, a Sub-Lieutenant in the Royal Canadian Navy, who until 2011 was employed at Canada’s ultra-secure TRINITY communications center in Halifax. Delisle was arrested in January 2012 for passing information gathered from radio and radar signal interceptions to a foreign power, most likely Russia. In May of last year, it emerged that it was in fact the United States that alerted the Canadian Security Intelligence Service (CSIS) about Delisle’s espionage activities. What was supposed to happen next was that the CSIS —which is not a law enforcement agency— should have notified the RCMP of Delisle’s activities and requested his prompt arrest. Remarkably, however, the CSIS chose to keep the Delisle file concealed from the RCMP, ostensibly to prevent the possible exposure of intelligence sources and methods in open-court proceedings. The Canadian Press, which broke the story on Sunday, cited “numerous sources familiar with the Delisle case” in claiming that the CSIS’ refusal to request Delisle’s arrest “frustrated Washington”, which feared that the spy was routinely compromising United States secrets shared by America with its Canadian allies. So frustrated were the Americans, that the Federal Bureau of Investigation (FBI) sketched out a plan to lure Delisle onto US soil and arrest him there. Read more of this post

News you may have missed #835 (Americas edition)

Rene GonzalezBy IAN ALLEN | intelNews.org |
►►‘Cuban Five’ spy member renounces US citizenship. Cuban intelligence officer Rene Gonzalez, who was a member of the “Cuban Five” spy group in South Florida, was released from a US prison in 2011, after serving 10 years for espionage. He was required to serve three years’ probation in the US. But on Friday US District Judge Joan Lenard ruled that Gonzalez, who had already been allowed to temporarily return to Cuba for his father’s funeral, could stay there if he renounced his US citizenship. Gonzalez is the first of the Cuban Five to return to the island. The other four men continue to serve lengthy sentences in US federal prisons.
►►US Defense Intelligence Agency contemplates austerity. Since 2001, intelligence agencies have had just about all money they wanted, but not anymore, as the cuts mandated by the Budget Control Act are hitting even previously inviolable spook accounts. In a reflection of this new reality, the Defense Intelligence Agency plans a conference with industry at its headquarters on June 27, 2013. Agency leaders will focus on “current and emerging challenges in the context of an increasingly austere fiscal posture”.
►►Report says Canada spies caught off guard by Arab Spring. The 2011 Arab Spring uprising in the Middle East came as a surprise to the Canadian government, which risks getting caught off-guard again without a new approach to gathering intelligence. This is according to a new report by Canada’s Intelligence Assessment Secretariat, a unit of the Privy Council’s Office, the bureaucratic arm of the Office of the Canadian Prime Minister. On the other hand, the report states, “there is no reason to believe that [Canadian intelligence agencies] did any worse than other allied agencies in its analysis of the Arab Spring, and in a few areas it appears to have done somewhat better”.

News you may have missed #832 (foiled Canada terror plot)

Toronto, CanadaBy IAN ALLEN | intelNews.org |
►►Two arrested in Canada terror plot. Chiheb Esseghaier, 30, and Raed Jaser, 35, who live in Montreal and Toronto, were planning to derail a Via Rail passenger train in Toronto  with support from “al-Qaeda elements located in Iran”, Canadian police said Monday. “This is the first known al-Qaeda planned attack that we’ve experienced in Canada”, Superintendent Doug Best told a news conference. Police said the men did not receive financial support from al-Qaeda, but declined to provide more details. There was no apparent reason to think the planned attacks were state-sponsored.
►►Canada foils ‘al-Qaeda inspired’ terror attack on train. The Royal Canadian Mounted Police (RCMP) said the surveillance operation leading to the arrests of the two suspects was “a result of extensive collaborative efforts”. Chief Spt Jennifer Strachan said the two men had sought to target “a specific route, but not necessarily a specific train”. At the same time, the RCMP said they believed the plot was in the planning stage and “there was no imminent threat to the general public”.
►►Tip from Muslim community ‘helped foil’ al-Qaeda plot. Canadian lawyer Hussein Hamdani told CTV News Channel that a tip from the Muslim community helped investigators foil the alleged al-Qaeda plot. “This goes to show the partnership between the Muslim community in Canada and the RCMP and all the police services,” said Hamdani. It might not be well known but collaboration between Muslims and government agencies —like the RCMP, CSIS, Canadian Border Services Agency and the Department of Justice— is quite common, according to Hamdani.

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