News you may have missed #0007

  • German counterintelligence chief accuses Russia of commercial spying. Burkhard Even, Germany’s director of counterintelligence at the Federal Office for the Protection of the Constitution, has told German newspaper Die Welt am Sonntag that Russian spies have intensified espionage operations on the German energy sector to help Russian firms gain commercial advantages. On May 26, intelNews reported on similar accusations by the German Association for Security in Industry and Commerce (ASW). Its director told Mitteldeutsche Zeitung that the targeting of German research and commercial enterprises by mainly Chinese and Russian agents is so extensive that it usually costs the German economy over €20 billion per year, and it may be costing as high as €50 billion per year since 2007.
  • Spanish intelligence agents kicked out of Cuba. Spanish newspaper ABC reports that the recently expelled officers of Spain’s National Intelligence Centre (CNI) were secretly recorded at Havana cocktail parties “making derogatory comments about the Castro brothers and other [Cuban] government officials”. 
  • Proposed US bill would boost congressional oversight of covert spy programs. Key lawmakers in Washington have endorsed a proposed bill that would force the president to make fuller disclosure of covert spy programs. The legislation, which has already been approved by the House Intelligence Committee, would force the president to disclose classified operations to all members of Congress’ intelligence oversight panels. 
  • Report claims CIA, Mossad scoring points against Hezbollah. A new report claims American and Israeli intelligence organizations have scored notable recent successes against Hezbollah, in places such as Azerbaijan, Egypt and Colombia.

CIA now actively hiring failed investment bankers

By JOSEPH FITSANAKIS | intelNews.org |
It’s been several months now since Dennis Blair announced that “the primary near-term security concern of the United States is the global economic crisis and its geopolitical implications”. Barack Obama’s Director of National Intelligence even hired James Rickards, a self-described “threat finance” expert, to advise him on “[c]ountries [that] might […] be tempted to engage in financial warfare” against the United States. It now appears that the rapid rise of microeconomic concerns to the top of the US intelligence community’s threat list has also affected the CIA. The Agency has announced a new recruitment program targeting fired investment bankers to work in its Directorate of Intelligence. Speaking on National Public Radio’s Marketplace, CIA official Jimmy Gurule said the new recruitment drive is part of creating “a national strategy […] to deal with these types of financial issues”. Unfortunately, Marketplace’s piece is extremely superficial. A more in-depth analysis of what “these types of financial issues” may mean, is available here.

German security group sees rise in industrial, commercial spying

By JOSEPH FITSANAKIS | intelNews.org |
A major German corporate security group has echoed recent warnings by the German government that foreign industrial and commercial espionage in Germany is on the increase. Last week, the general manager of the German Association for Security in Industry and Commerce (ASW), Dr. Berthold Stoppelkamp, told German newspaper Mitteldeutsche Zeitung that the targeting of German research and commercial enterprises by mainly Chinese and Russian agents is so extensive that it usually costs the German economy over €20 billion per year, and it may be costing as high as €50 billion per year since 2007. Dr. Stoppelkamp said that, although these covert activities are government-managed, they aim to assist individual Chinese or Russian firms competing against German companies for international contracts. Read more of this post

Analysis: Can US intelligence help with economic crisis?

By IAN ALLEN| intelNews.org |
Last month, US Director of National Intelligence, Dennis Blair, warned that the ongoing global economic crisis should be Washington’s “primary near-term security concern”. Although it is unclear whether Blair’s statement represents a grass roots shift in the US intelligence community’s analytical and operational focus, his comments were seen as an attempt to raise economic intelligence to the top of Washington’s intelligence priorities. Observers have described such a potential transformation as “a sea change” and “a new prism” for analyzing global developments from an intelligence standpoint. But do Blair’s remarks represent a concrete change in US intelligence attitudes? Is the economic crisis really a more important intelligence concern than transnational terrorist networks? Read more of this post

Analysis: US issues financial warfare warnings against China, Russia

By JOSEPH FITSANAKIS| intelNews.org |
It turns out that Admiral Dennis Blair wasn’t kidding when he said last week that “the primary near-term security concern of the United States is the global economic crisis and its geopolitical implications”. Barack Obama’s Director of National Intelligence warned during his annual threat assessment that “the longer it takes for the recovery to begin, the greater the likelihood of serious damage to US strategic interests”. The continuing credit vulnerability of the US economy is central to these fears, and it appears to be forcing the rapid rise of microeconomic concerns to the top of the US intelligence community’s threat list. A major aspect of these concerns centers on the hard-to-ignore fact that China currently holds close to $1 trillion-worth of US monetary debt. Trade experts suggest that, should China suddenly decide to offer these securities for sale, “the US dollar would tank”. The chances of this happening are slim -the Chinese economy would also suffer from such a move- but US intelligence agencies are taking no chances. On February 19, the office of the Director of National Intelligence issued a public warning to the Chinese government that it would consider any attempts to sell US Treasury bonds an act of “financial warfare”. Keep reading →

Austrian police officers arrested on Kazakh espionage charges

Rakhat Aliyev

Rakhat Aliyev

By JOSEPH FITSANAKIS | intelNews.org |
Last month we reported on Rakhat Aliyev, former Director of Kazakhstan’s National Security Committee (KNB) and former son-in-law to the country’s dictatorial president, Nursultan Nazarbayev. In 2007, following his divorce with Nazarbayev’s eldest daughter, Aliyev was stripped of his government positions, issued with an arrest warrant, and now lives in exile in Vienna, Austria. Soon afterwards, Aliyev began exposing President Nazarbayev’s corrupt dealings with foreign oil companies operating in Kazakhstan. In January of this year, a Kazakh-employed public relations firm working to “exonerate” Nazarbayev was found to have received assistance from “two anonymous serving officers of MI6”, Britain’s external intelligence agency. Now a new scandal has erupted in Vienna, where two Austrian police officers have been arrested by the country’s authorities and charged with “spying for Kazakhstan”. The two officers were apprehended by counterintelligence agents while reportedly “gathering information from a computer about Rakhat Aliyev”. Read more of this post

Britain says at least 20 countries spying on it

By JOSEPH FITSANAKIS | intelNews.org |
Britain’s Sunday Telegraph newspaper has revealed a government report, which states that the UK is a “high priority espionage target” for “at least 20 foreign intelligence services”. The report, issued to UK government departments on January 19, 2009, warns against overlooking traditional espionage threats while focusing almost solely on the activities of al-Qaeda and other Islamist groups. Authored by a group of British Army Intelligence Corps officers, the report identifies Chinese and Russian espionage networks as the most active on British soil, and discloses that “[t]he number of Russian intelligence officers in London has not fallen since the Soviet times”. Read more of this post

MI6 agents accused of assisting corrupt Kazakh oil propaganda effort

Rakhat Aliyev

Rakhat Aliyev

By JOSEPH FITSANAKIS | intelNews.org |
Until recently, Rakhat Aliyev was deeply embedded in Kazakhstan’s corrupt governing establishment. Having served for years as the country’s Deputy Foreign Minister and Director of Kazakhstan’s National Security Committee (the intelligence service, also known as KNB) he is uniquely aware of the annals of sleaze and fraud that dominate Kazakh political culture. In 2007, following his divorce with Dariga Nazarbayeva, eldest daughter of Kazakh President Nursultan Nazarbayev, Aliyev became estranged from the Kazakh leadership. He was stripped of his government positions, issued with an arrest warrant, and now lives in exile in Vienna, Austria. Soon after his estrangement from the Kazakh leadership, Aliyev began accusing President Nazarbayev of regularly receiving secret commissions from foreign oil companies operating in Kazakhstan, and of illegally expropriating state assets worth billions of US dollars. Read more of this post

Unprecedented German tax scandal has intelligence connection

Heinrich Kieber

Heinrich Kieber

By JOSEPH FITSANAKIS | intelNews.org |
Klaus Zumwinkel was until recently the CEO of Deutsche Post, Germany’s now-privatized postal company, which is said to be the world’s largest logistics corporation. Early yesterday morning, Zumwinkel was given a two-year suspended sentence and fined €1 million for systematically evading taxes “with criminal energy”, as the presiding judge put it. The disgraced former CEO is thus far the highest-profile offender in what has become the largest financial crime scandal in German history. The affair involves nearly 1,000 names of wealthy investors, celebrities, and business executives, linked to illegal fund deposits at LLB and LGT Group, two “no-questions-asked” banks owned by the Royal family of the tiny alpine tax haven of Liechtenstein. What is perhaps less known is that the investigation, which now incorporates thousands of individuals in at least a dozen countries, began through a tip received by Germany’s foreign intelligence service. Read more of this post

US Treasury intelligence division after bin Laden’s son

By IAN ALLEN | intelNews |
The US Treasury Department’s Division of Financial Intelligence has announced it intends to freeze all US assets of four individuals allegedly connected with al-Qaeda’s presence in Iran and Egypt. The four include Mustafa Hamid, who is said to be al-Qaeda’s semi-official envoy to the Iranian government, and Egyptian Islamic Jihad member Muhammad al-Bahtiyti. They also include Yemeni Ali Saleh Husain and Saad bin Laden, one of Osama bin Laden’s sons, who is said to be in Iran. US intelligence agencies have been monitoring Saad’s movements ever since he left Sudan, along with his father, in 1996. Read more of this post

Peru wiretapping scandal involves Norwegian oil company

Alan Garcia

Alan Garcia

By IAN ALLEN | intelNews.org |
Last October, a television station in Peru aired intercepted telephone conversations in which high-level politicians were heard accepting payments by lobbyists in return for awarding state oil contracts to a Discover Petroleum, a small Norwegian oil company. The revelation caused one of the worst crises in modern Peruvian political history, prompting the entire cabinet of President Alan Garcia to resign. Now the country’s Department of Justice is investigating charges of corruption against the president of Discover Petroleum, several lobbyists, numerous government oil executives, and three former government ministers. Meanwhile, the Peruvian police is targeting the people responsible for…intercepting the revelatory telephone calls. Six people were arrested late last week for illegally recording the telephone discussions on behalf of Business Track SAC, a private security company. Interestingly, five of the six are either retired or active counterintelligence officers of the Peruvian Navy. Read more of this post

MI5 Director in rare public interview

By IAN ALLEN | intelNews.org |
The head of MI5, Britain’s foremost counterintelligence agency, has given the first public interview of an MI5 serving Director General in the organization’s 100-year history. Jonathan Evans, who became Director General of MI5 last April, answered questions in a face-to-face interview, on January 6, with a carefully selected group of security correspondents representing a handful of British media outlets. Among other things, Evans confirmed that al-Qaeda’s Pakistan-based leaders are actively trying to recruit British-born Muslims to stage attacks inside the UK. He estimated at “around 2,000” the number of individuals in Britain who are actively involved in such efforts, with many more involved in “fundraising, helping people to travel to Afghanistan, Pakistan and Somalia. Sometimes they provide equipment, support and propaganda”, he said. Read more of this post

Analysis: Report discusses foreign espionage targets inside US

The Federal Bureau of Investigation (FBI) has issued a new strategy report broadly addressing foreign espionage activity in the US. The report, which has been circulated within the National Association of Chiefs of Police, claims that America is “targeted from nearly every corner of the globe”. Citing data from 2003, it states that “dozens of countries” had “hundreds of known or suspected intelligence officers [entering or traveling] within the United States”. Accordingly, FBI counterintelligence investigations spanned the entire country and involved “all 56 [of the Bureau’s] field offices”. More importantly, the FBI strategy report stresses that foreign intelligence activity within the nation is today “far more complex than it has ever been historically” due to its increasingly asymmetrical character. Read more of this post

Corporate intelligence firms seeing business boom

Fortune magazine reports that corporate intelligence firms, such as Control Risks in London and Kroll in New York, represent a sector of the economy that “stand[s] to gain from the financial crisis”. In fact, such “specialized consultancy” firms, largely staffed by former MI6 and CIA agents, are already “seeing a dramatic uptick in business from a surge of banks, private equity firms, and hedge funds that need to make sure those pesky multimillion-dollar investments they made when times were good will hold up”. Read more of this post