Situation Report: CIA venture group funds video recorder firm

In-Q-TelBy TIMOTHY W. COLEMAN | intelNews.org |
On June 27, In-Q-Tel, the venture arm of the Central Intelligence Agency and other members of the United States intelligence community, announced a strategic partnership with Looxcie, makers of the first ever “wear and share” videocam recorders. The financial terms of the deal were not disclosed. In-Q-Tel, created in 1999, is the foremost strategic investor on behalf of the US Intelligence Community. Originally called “Peleus”, In-Q-Tel was initially associated with the CIA’s Directorate of Science and Technology (DS&T).  Interestingly enough, the “Q” in In-Q-Tel’s branding is apparently derived from a fictional character in the James Bond movies referred to as “Q”.  As many movie fans will recall, “Q” was responsible for outfitting Bond and other 00s with the famed and awe-inspiring gadgetry and technical equipment needed for missions. Having evolved from the CIA’s DS&T, whose primary purpose is to “create, adapt, develop and operate technical collection systems and apply enabling technologies to the collection, processing and analysis of information”, In-Q-Tel’s strategic investments in dual-purpose technology firms is hardly surprising. In fact, In-Q-Tel has a notable track record, especially given the fact that it is a government-run venture capital fund. Successful as it may be, In-Q-Tel represents itself quite humbly, formally explaining that it is a “not-for-profit organization […] created to bridge the gap between the technology needs of the Intelligence Community and new advances in commercial technology”. Read more of this post

News you may have missed #755

Jeffrey Paul DelisleBy TIMOTHY W. COLEMAN | intelNews.org |
►►MI5 chief says al-Qaeda threatens UK from Arab Spring nations. Brittan’s domestic intelligence agency chief, Jonathan Evans, has stated that al-Qaeda is continuing to gather a foothold in nations that experienced the Arab Spring. In his speech, Evans, who directs the UK’s MI5, warned that al-Qaeda is attempting to reestablish itself in countries that had revolted, and that “a small number of British would-be jihadis [sic] are also making their way to Arab countries to seek training and opportunities for militant activity, as they do in Somalia and Yemen. Some will return to the UK and pose a threat here”. With a suspected 100-200 British born Islamist militants operating in the Middle East and Africa, the MI5 Director General warned that the coming summer Olympics in London made for an attractive target.
►►Russia to conduct airborne surveillance of Canada’s infrastructure. Canada’s National Post newspaper reports that Russian surveillance aircraft will conduct a flyover of Canada’s military and industrial infrastructure in what appears to be an annual Russian air reconnaissance mission. For the past ten years and under the Open Skies treaty, Russia is allowed to conduct flyovers of key Canadian sites. This will be the first flyover since the arrest last January of Jeffrey Paul Delisle (pictured), a Royal Canadian Navy officer, for allegedly spying on Canada on behalf of the Russians.
►►Japanese official who leaked DRPK missile info found dead. A Japanese Foreign Ministry official, who was largely thought to the source of leaked information regarding a Chinese missile technology transfer to North Korea in April, has been found dead. The official, previously under investigation for publicly disclosing national security information, was found hanged in his Chiba prefecture home on June 20. Additional details, including the individual’s name, were not made available, but Japanese government officials did indicate that the death did not appear to be suspicious.

Guest Comment: India’s corporate espionage boom

AssoCham IndiaBy BRITTANY MINDER | intelNews.org |
A survey conducted earlier this month by the Associated Chambers of Commerce and Industry of India (AssoCham) found that corporate espionage in India is surging. The June 14 survey found that 35 percent of Indian firms regularly and aggressively conduct research on competitors and employees, which goes far beyond the normative business intelligence realm. Secretary General of AssoCham, D.S. Rawat, maintained that “demand from certain industries, such as information technology, infrastructure, insurance, [and] banking and manufacturing is overwhelming”. With an increasing demand for espionage gadgetry, up nearly 30 percent from last year, the survey also noted that “almost all the company representatives in these domains acknowledged the prevalence of industrial espionage to gain access to information and steal trade secrets of their competitors through private deals with sleuths and spy agencies”. The appetite for corporate espionage and gadgets doesn’t stop at rival-on-rival activity; espionage is a pursuit while industrial espionage is a practice. Overall corporate vulnerabilities, a lack of appreciation for corporate security best practices, and the tangible motivation of revenue is, according to AssoCham, driving, “companies who have strong unions and are vulnerable to pilferage hire spy agencies and plant an under-cover agent, a mole in minor job profiles in rival companies to ascertain if union leaders are getting paid for creating trouble”. According to The New York Times, conservative acknowledgements of the boon of the corporate spy industry willingly concede that some companies even hire “mystery vendors” to gauge their own employees’ response to sifting from outsiders. Read more of this post

News you may have missed #750 (US edition)

NROL-38 reconnaissance spacecraftBy TIMOTHY W. COLEMAN | intelNews.org |
►►US spy agency launches new satellite. The US National Reconnaissance Office, the agency tasked with overseeing America’s intelligence satellites, successfully placed a new spy satellite into orbit. The Christian Science Monitor reports that the NROL-38 reconnaissance spacecraft was launched from Cape Canaveral Air Force Station in Florida. The satellite launch, sitting atop an Atlas 5 rocket, was streamed live via Webcast for several minutes before being terminated due to national security restrictions and the classified nature of the mission. Particulars regarding the capabilities or specific purpose of the spy satellite were not provided. However, just a few days before, the US Air Force’s highly classified space plane known as the  AX-37B returned to Vandenberg Air Force Base in California.
►►FBI takes on larger domestic intelligence role. The US Federal Bureau of Investigation, under a newly devised action plan, will be afforded a greater role in domestic intelligence efforts in the US, according to a recent Washington Post article.  Senior level field agents at the bureau are expected to serve as representatives for the Office of the Director of National Intelligence (ODNI), the agency created after 9/11 to oversee activities of all US intelligence efforts. The Post quotes CIA spokeswoman Jennifer Youngblood, who —remarkably, considering CIA/ODNI relations in recent years— said that the agency has not opposed the ODNI’s move to elevate FBI agents in the US, and that “the program is working well”.
►►CIA declassifies 9/11 documents. The CIA released this past week hundreds of pages of declassified documents related to the September 11, 2001, attacks, which detail the agency’s budgetary woes leading up to the deadly strikes and its attempts to track al-Qaeda leader Osama bin Laden. The National Security Archive at George Washington University says it obtained the documents through a Freedom of Information Act request. The documents are heavily redacted and offer little new information about what the US knew about the al-Qaeda plot before 2001.

News you may have missed #747

Israeli athletes at the 1972 Munich OlympicsBy TIMOTHY W. COLEMAN | intelNews.org |
►►Dutch media reportedly spied on China. Dutch media participated in a clandestine intelligence collection effort on behalf of the Netherlands General Intelligence and Security Service (AIVD) during the 2008 Summer Olympic Games in Beijing. According to Dutch sources, at least seven reporters attending the Olympics were coaxed into, and were paid for, collecting information and taking photos of targeted Chinese officials interested in speaking with Dutch company and industry representatives. The AIVD did not comment on the allegations but did remark that Dutch law allows them to contact anyone who could provide or has access to intelligence.
►►Nicaragua arrests Colombian national for espionage. According to the Spanish-language weekly newspaper Semana, General Julio Cesar Aviles, the head of Nicaragua’s Army, announced the arrest of Colombian national Luis Felipe Rios, for seeking to “obtain Nicaraguan state documents about defense and national security”. The 34-year old Rios was apparently captured in Managua on Tuesday after having been under the surveillance of Nicaraguan counterintelligence officials for over a year. Rios was in Nicaragua under the guise of being a Spanish national working for a media outlet. The lead prosecutor in Nicaragua, Armando Juarez, claimed that there was “sufficient proof” to prosecute Rios. Colombian officials, including President Juan Manuel Santos, have stated they are investigating the matter.
►►Neo-Nazi linked to 1972 Munich Olympic terrorists. Recently released files by Germany’s security service, the Federal Office for the Protection of the Constitution (BfV), links neo-Nazi Willi Pohl to forged passports provided to Black September terrorists who perpetrated the 1972 attack at the Munich Olympics. The attack resulted in the deaths of 11 Israeli athletes. According to German magazine Der Spiegel, over 2,000 documents were released in which the BfV asserts that Pohl assisted and even chauffeured one Black September member around Germany in the weeks leading up to the attack. German police arrested Pohl in 1972 for “unauthorized possession of firearms” and sentenced him to two years’ incarceration for possessing grenades and weapons. He was released only a few days after his conviction and he fled the country, ending up in Lebanon.

US judge denies release of CIA report on Bay of Pigs invasion

Court documentsBy JOSEPH FITSANAKIS | intelNews.org |
On April 17, 1961, a brigade of 1,300 CIA-funded and -trained anticommunist Cubans mounted a surprise assault on the Caribbean island. But prior intelligence collected by  spies working for Havana, and stiff resistance by pro-Castro troops, resulted in the CIA’s biggest known covert action failure. Approximately 1,200 surviving members of the CIA’s army were captured by pro-Castro forces, many of whom were severely interrogated or executed in subsequent years. The intelligence fiasco led to a five-volume CIA report, whose final volume was authored in the early 1980s by CIA resident historian Jack Pfeiffer. It essentially contains the CIA’s counterargument to a previous report, authored by the Agency’s Inspector General, which placed the blame for the failure on the invasion squarely on the shoulders of the CIA. Volume III of the report was voluntarily released by the CIA in 1998, but was not discovered by researchers until 2005, when an academic found it among the Kennedy Assassination Records Collection at the US National Archives. Following an unsuccessful Freedom of Information Act request, George Washington University’s National Security Archive sued the CIA in 2011, eventually forcing the Agency to declassify Volumes I, II and IV last April. This left Volume V, which is the subject of an ongoing dispute between historians and the CIA. But in a decision aired late last week, US District Court judge Gladys Kessler agreed with the Agency that the volume was not subject to US declassification rules because it had been “rejected for inclusion in the final publication” of the report. According to judge Kessler, the volume written by Dr. Pfeiffer, the CIA historian, was not a finished product, but rather a draft manuscript, and was therefore exempt from public disclosure under the Freedom of Information Act. Read more of this post

News you may have missed #727

Jeffrey Paul DelisleBy IAN ALLEN | intelNews.org |
►►US government-authorized wiretaps increased in 2011. The US Justice Department sought 1,745 secret wiretapping warrants in 2011, an increase of 239 over 2010, according to correspondence sent to Congressional leaders and oversight committees. The secret warrants are governed under the Foreign Intelligence Surveillance Act (FISA) and are used in terrorist and espionage investigations by the FBI. The letter, dated April 30, 2012, also notes that the FBI issued 16,511 National Security Letters (NSLs) to obtain certain records and information in investigations. It further asserts that the requests were for investigations relating to 7,201 different US persons. The number of NSLs declined dramatically from 2010 when the FBI had sought 24,287.
►►Australia axes spy agency funding. Large budget cuts by the Australian Labour government, which is trying to engineer a federal budget surplus, are expected to affect funding for the country’s intelligence agencies. The six agencies of the Australian intelligence community have been given a collective budget of $81 million over four years, a figure that is $20.4 million lower than previous budgets. The government said that savings will be “redirected to support other national intelligence priorities”.
►►Canada spy case adjourned until June. The case of Jeffrey Delisle, a Halifax naval intelligence officer accused of espionage, has been adjourned until next month because his lawyer has not yet received all of the files in the case. Delisle is charged with communicating information to a foreign entity —probably Russia— that could harm national interests. Until 2010, Delisle worked for both Canada’s Chief of Defence Intelligence and at the Strategic Joint Staff, which oversees virtually every major aspect of the military’s domestic and international plans and operations.

News you may have missed #726

Barbara Annette RobbinsBy IAN ALLEN | intelNews.org |
►►Portrait of first female CIA officer to die in line of duty. In 1965, a 21-year-old American woman, Barbara Annette Robbins (photo), was among the victims of a car bombing at the US Embassy in Saigon, South Vietnam. Washington said she was a diplomat. But, at a ceremony last year, the CIA admitted she was an employee of the Agency. This makes her the first woman at the male-dominated CIA killed in the line of duty. She is also the youngest CIA employee ever killed. And she appears to be the first American woman to die in the Vietnam War. The Washington Post has an interesting article about her short life and career.
►►US Jewish leader says release of Israeli spy Pollard ‘inevitable’. The release of Jonathan Pollard, who is serving a life sentence in a US prison for spying on the US for Israel, is “inevitable” and could take place shortly on “technical grounds”, according to Jack Rosen, a prominent Jewish leader and supporter of US President Barack Obama. A New York City real estate executive who hosted Obama at his Upper East Side home for a Democratic Party fundraiser last November, Rosen said that “there are some technical reasons, I’m told, why [Pollard] will be released. I think there’s an inevitability to that happening”.
►►Senior reshuffle at South Korean spy agency. South Korean President Lee Myung-bak reshuffled two top posts at South Korea’s main intelligence agency Monday in a shake-up that also affected five other vice-ministerial posts. Nam Joo-hong, a former well-known security scholar who has so far served as ambassador to Canada, was named the first deputy chief of the National Intelligence Service, while Cha Moon-hee, a veteran intelligence official, was tapped as the agency’s second deputy chief. The spy agency’s first and second deputy chiefs are in charge of its overseas and domestic operations, respectively.

Would be al-Qaeda bomber was Saudi double agent

YemenBy JOSEPH FITSANAKIS | intelNews.org |
The man tasked by al-Qaeda’s Yemeni branch to blow up an airliner bound for the United States last month, was a mole who had been recruited by Saudi intelligence. IntelNews understands that the double agent is a Saudi citizen who volunteered to act as an informant for Saudi authorities. The latter eventually tasked him with traveling to Yemen, joining al-Qaeda in the Arabian Peninsula (AQAP), and convincing its leaders that he was willing to carry out a suicide mission against Western targets. It is not known at this point whether the Saudis kept the United States Central Intelligence Agency in the loop from the moment the mole was sent to Yemen to join AQAP. What is known is that the man did indeed manage to penetrate AQAP and was eventually entrusted with attacking a civilian airliner with a custom-built bomb designed to fit seamlessly around his scrotum. However, instead of carrying out the suicide mission as agreed, the man left Yemen for Saudi Arabia and delivered both himself and the bomb to Saudi intelligence. The Saudis eventually notified the CIA of the foiled plot, before forwarding the deactivated explosive device to the Federal Bureau of Investigation, which is now studying it. Thus, initial media reports claiming that the CIA had foiled the attack appear somewhat stretched at this point, in light of the critical role of the Saudi mole inside AQAP. Read more of this post

News you may have missed #725 (al-Qaeda edition)

Fahd al-QusoBy IAN ALLEN | intelNews.org |
►►Al-Qaeda airline bomb plot thwarted by CIA. US intelligence services foiled a plot hatched by al-Qaeda in the Arabian Peninsula (al-Qaeda’s Yemeni affiliate) to blow up a plane bound for America using a more sophisticated version of the underwear bomb deployed unsuccessfully in 2009, according to the White House and the FBI. The Associated Press quoted unnamed US officials as saying that the would-be bomber, based in Yemen, had been given the bomb by al-Qaida, which had left the choice of plane and the timing to him. The CIA intervened to seize the bomb. The fate of the alleged bomber is still unknown.
►►CIA kills al-Qaeda man wanted for attack on USS Cole. Fahd al-Quso, who was on the FBI’s most-wanted list for his part in the bombing of the warship USS Cole in 2000, was hit by a missile fired from the unmanned CIA aircraft on Sunday as he and another al-Qaeda operative stepped out of a vehicle in the southern province of Shabwa, Yemen. Al-Quso (photo) had served more than five years in a Yemeni prison for his role in the USS Cole attack and was released in 2007.
►►Al-Qaeda attacks Yemeni base hours after CIA strike. Al-Qaeda militants staged a surprise attack Monday on a Yemeni army base in the south, killing 20 soldiers and capturing 25 just hours after a US drone strike killed Fahd al-Quso, one of its senior figures, who had participated in the 2000 bombing of the USS Cole in Yemen. The militants managed to reach the base both from the sea and by land, gunning down troops and making away with weapons and other military hardware after the blitz attack.

Scandinavian phone company helps ex-Soviet republics spy on citizens

TeliaSonera CEO Lars NybergBy JOSEPH FITSANAKIS | intelNews.org |
A highly profitable cellular telecommunications company, which is jointly owned by a Swedish-Finnish public-private consortium, is enabling some of the world’s most authoritarian regimes to spy on their own citizens, according to a new report. TeliaSonera AB, the dominant telephone company and mobile network operator in Sweden and Finland, is currently active in nearly 20 countries around the world. In 2011, it posted a net profit of nearly $3 billion, 25 percent of which came from the company’s operations in countries of the former Soviet Union. They include some of TeliaSonera’s most lucrative franchises, such as Geocell in Georgia, Kcell in Kazakhstan, Ucell in Uzebekistan, Tcell in Tajikistan, and Azercell in Azerbaijan, among others. But a new investigation by Sweden’s public broadcaster, Sveriges Television AB  (SVT), accuses TeliaSonera of knowingly giving some of the world’s most oppressive governments the means to spy on their own citizens. The report, which is available online in English, effectively states that TeliaSonera is directly complicit in some of the world’s most severe human rights abuses. The accusation is bound to cause embarrassment among senior officials in the Swedish government, which owns nearly 40 percent of TeliaSonera’s stock. The SVT investigation singles out Uzbekistan, Belarus and Azerbaijan, where TeliaSonera operates monopoly cellular networks on behalf of the state, “in exchange for lucrative contracts”. While running the networks, TeliaSonera allegedly grants local intelligence agencies complete and real-time access to the all telephone calls, pen-register data, and content of text messages exchanged by users. This, says the SVT report, has in turn facilitated several arrests of pro-democracy activists and political dissidents in countries like Belarus and Azerbaijan. Read more of this post

News you may have missed #724

Shakil AfridiBy IAN ALLEN | intelNews.org |
►►Aid group denies link to US intelligence in Pakistan. Aid group Save the Children denied accusations it has ties to US intelligence agencies in Pakistan. The organization’s denial came shortly after Dr. Shakil Afridi, a doctor the CIA recruited to help in the search for Osama bin Laden, told Pakistani interrogators that Save the Children played a role in his becoming involved with the CIA. Following Afridi’s interrogation, the Pakistani government banned some Save the Children members from leaving the country and aid supplies –including medical supplies– have been blocked by customs.
►►Is MI6 double spy’s case linked with Gareth Williams’ death? In 2010, British authorities jailed for a year MI6 employee Daniel Houghton, after he was caught trying to sell classified documents to MI5 spooks posing as foreign agents. According to newspaper The Daily Mirror, British police are now “probing a possible link between the Houghton’s case and the death of MI6 employee Gareth Williams, who was found dead in his London apartment in 2010. According to the paper, police detectives “want assurances from MI6 that Williams’ details [and] identity were not compromised” by Houghton.
►►Fears of spying hinder US license for China Mobile. China Mobile, the world’s largest mobile provider, applied in October for a license from the Federal Communications Commission to provide service between China and the United States and to build facilities on American soil. But officials from the FBI, the Department of Homeland Security and the Justice Department’s National Security Division are concerned that the move would give the company access to physical infrastructure and Internet traffic that might allow China to spy more easily on the US government and steal intellectual property from American companies. This is according to The Los Angeles Times, which cites “people familiar with the process who declined to be identified because the deliberations are secret”. US officials and lawmakers have expressed similar concerns about a Chinese telecommunications hardware manufacturer Huawei Technologies, which is alleged to have contacts with the Chinese People’s Liberation Army and the Ministry of State Security.

Israel accused of spying on Turkish fighter-pilot communications

Turkish Air Force F-16sBy JOSEPH FITSANAKIS | intelNews.org |
Authorities in Turkey have reportedly initiated a classified program to encrypt communications between Turkish fighter pilot trainees and their ground command centers, after it emerged that their conversations were being intercepted by Israeli intelligence. The allegations were aired earlier this week by Turkey’s Habertürk newspaper, which said that Israeli military intelligence had managed to “wiretap” (sic) for over a year radio exchanges between the Turkish pilots and their ground instructors. The Ankara-based newspaper claims that the Israelis had specifically targeted the 3rd Main Jet Base Group Command, in Konya, in Turkey’s Central Anatolia region. Konya, the birthplace of Turkey’s Minister of Foreign Affairs, Ahmet Davutoğlu, hosts one of the country’s most active naval bases, where hundreds of pilots undergo initial training in flying F-16 fighter jets. Upon completing their training, they are required to undergo intensive combat readiness training, before entering the ranks of the Turkish Air Force (TSK) as full fighter pilots. According to Habertürk, the aim of the Israeli interceptors was to uncover “details about the TSK’s training programs and flight strategies”. The paper claims that the discovery of the Israeli communications interception program prompted Turkish engineers to begin developing software specifically designed to encode communications between fighter jets and ground command facilities. Read more of this post

Lawyer alleges MI6 withheld data in spy’s death

Gareth WilliamsBy IAN ALLEN | intelNews.org |
A lawyer representing the family of an MI6 employee found dead in his London apartment in 2010, has accused the British intelligence agency of deliberately withholding evidence from police investigating his death. The allegation was made on Tuesday morning at the Coroner’s Court in Westminster, London, during an official inquest into the death of Gareth Williams, a mathematician in the employment of Britain’s signals intelligence agency, GCHQ. A few years ago, Williams was seconded to MI6, Britain’s external intelligence agency, to help automate intelligence collection. He had also worked with several United States agencies, including the Federal Bureau of Investigation and the National Security Agency. But his career came to an abrupt end in 2010; on August 23, he was found dead in a padlocked sports bag at his home in Pimlico, London. The bizarre murder case, which has preoccupied British media for 21 months, took a new twist this week, after it was revealed in open court that MI6 had failed to share nine computer memory sticks with officers of the London Metropolitan Police, who were investigating Williams’ death. It was also revealed that MI6 did not allow the Met to handle the case, due to its alleged sensitivity. Instead, MI6 asked for the force’s Counter-Terrorism Command (also known as SO15 Branch), whose officers have security clearances, to act as a go-between linking MI6 with the police. Government witnesses also disclosed that MI6 had searched the memory sticks without telling the police, and that it had failed to share with detectives a detailed list of Williams’ possessions. Read more of this post