Comment: There Is No Such Thing as ‘Friendly Espionage’

August 9, 2012 by 5 Comments

Benjamin Netanyahu and Barack ObamaBy IAN ALLEN | intelNews.org |
Last month we reported on a story published by The Associated Press, according to which the Near East Division of the United States Central Intelligence Agency views Israel as the most serious threat to its secrets. The report cited interviews with several current and former US intelligence officials, who said the CIA views the Israeli spy community as “a genuine counterintelligence threat” to American interests. But Daniel Pipes, founder of the Middle East Forum and well-known American supporter of Israel, has authored a well-researched response to the Associated Press piece, in which he argues that reciprocal spying has been a decades-old element in Israeli-American relations. He recalls the case of Yosef Amit, a Major in Israel’s Military Intelligence Directorate, who in 1986 was arrested for spying on behalf of the CIA. Amit is believed to have been recruited by US intelligence in Bonn, West Germany; it is said that his handler was Tom Waltz, a Jewish CIA officer from the Agency’s station at the US embassy in Tel Aviv. Amit was convicted in 1987 and stayed in prison until 1993, when he was released after serving two-thirds of his sentence. Pipes also quotes Itamar Rabinovich, Israel’s Ambassador to Washington from 1993 until 1996, who has said that, during his tenure as Israel’s envoy in DC, it was common knowledge among embassy staff that “the Americans were […] tapping our phone lines”, including the embassy’s secure line. Consequently, claims Rabinovich, American intelligence potentially had access to “every juicy telegram” communicated to or from the embassy. Read more of this post

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News you may have missed #776

August 9, 2012 by 1 Comment

Alexei NavalnyBy I. ALLEN and T.W. COLEMAN | intelNews.org |
►►US Army critiques its own intel collection system. An intelligence gathering system, known as the Distributed Common Ground System (DCGS), widely used by the US Army in Afghanistan to detect roadside bombs and predict insurgent activity, has severe limitations and is “not suitable”. This is according to a memo sent on August 1 by the Army’s senior equipment tester, General Genaro J. Dellarocco, to the Army’s chief of staff, General Raymond Odierno. The memo hammers the DCGS system for its “poor reliability” and “significant limitations” during operational testing and evaluation earlier this year.
►►Russian lawyer exposes wiretap find on Tweeter. Russian lawyer and political activist Alexei Navalny, who discovered a wiretapping device at his workplace, allegedly installed by the Russian government, has used YouTube and Tweeter to publicize his discovery. The wiretap was allegedly found attached to a set of wires hidden inside the wall molding of Navalny’s office at the Moscow-based organization Anti-Corruption Fund. It was reportedly discovered with the help of a bug detector. The same wires seem to also be attached to a hidden camera.
►►Volkswagen victim of Chinese industrial espionage? A recent article by Agence France Presse claims that German-based Volkswagen has become a victim of industrial espionage. While operating under a joint partnership agreement with the Chinese automobile company First Automobile Works, to build and manufacture cars for China’s burgeoning domestic market, designs and technical specifications for Volkswagen engines were apparently stolen. An unnamed Volkswagen manager stated that the loss was “quite simply a catastrophe”. It’s worth noting, however, that a similar accusation leveled against China in 2011 by French automaker Renault, turned out to be a criminal hoax.

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News you may have missed #775

August 8, 2012 by Leave a comment

Ramstein Air Base, GermanyBy IAN ALLEN | intelNews.org |
►►Israel arrests man for allegedly spying for Syria. Israeli prosecutors have charged Iyad Jamil Assad al-Johari, a Druze resident of the occupied Golan Heights, with spying for Syria. The Shin Bet internal security service said in a statement that Johari, who is from the border village of Majdal Shams, was charged with “having contact with a foreign agent” and “passing information to the enemy”. The Shin Bet said Johari was arrested last month “on suspicion of maintaining contact with Syrian intelligence and passed information on Israeli army deployment on the Golan Heights”. The man’s family has denied the accusations.
►►German NATO employee charged with spying. Markus Koehler, a spokesman for German federal prosecutors, said in a statement that the suspect –identified only as Manfred K. in accordance with German privacy rules– was arrested Monday on charges of obtaining state secrets with the intent to provide them to an unidentified third party. The civilian NATO employee, who works at the US air base at Ramstein, is alleged to have obtained the data and then transferred it to his private computer.
►►Aussie spy agency looking for locksmith. In a new notice on its careers webpage, ASIS, Australia’s foreign intelligence agency, is looking for a “corporate locksmith”. “This is a unique role for a highly motivated and dedicated locksmith to provide complex locksmith services and advice across our organisation”, the notice states. “The position involves interstate and overseas travel, often at short notice”. The job notice says the successful applicant would have to manage the purchasing of all locks, safes and other secure containers for the service.

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Blackwater/Academi settles weapons-smuggling charges

August 8, 2012 by 3 Comments

Blackwater/Academi headquartersBy JOSEPH FITSANAKIS | intelNews.org |
In the eyes of many, the United States-based security firm formerly known as Blackwater is synonymous with ‘scandal’. Founded in 1997 by self-confessed CIA agent Erik Prince, the company was awarded hundreds of millions of dollars in non-competitive contract bids by the Bush administration, to provide wide-ranging security services in Iraq. But the company’s ‘shoot-first-ask-questions-later’ attitude resulted in numerous bloody incidents in the country, including the 2007 Nisur Square massacre, in which at least 14 Iraqi civilians were killed by trigger-happy Blackwater guards. In 2009, a frustrated US Department of State refused to renew the company’s governmental contracts, after which Blackwater terminated its partnership with the US government (or did it?). What is perhaps less known about the company, now renamed to Academi LLC, is that it has for years been the subject of several investigations by US authorities for a host of criminal offences, ranging from selling secret plans to foreign governments to illicit weapons trafficking. According to court documents unsealed yesterday at the United States District Court in New Bern, North Carolina, Academi has agreed to pay $7.5 million to settle some of these charges. Under the agreement, the company has owned up to 17 different criminal violations with which it was charged after a five-year multi-agency federal investigation led by the Department of Justice. The charges include possessing unregistered fully automatic weapons in the US, illegally exporting encrypted satellite-telephone hardware to Sudan, training foreign nationals without a license, giving classified documents to foreign governments, as well as selling weapons to the Kingdom of Jordan without US government authorization and then lying about it to US federal firearms officials. Read more of this post

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News you may have missed #774 (lawsuit edition)

August 7, 2012 by Leave a comment

NSA headquartersBy IAN ALLEN | intelNews.org |
►►NSA whistleblower sues over property seized in leak raid. Diane Roark, a former staffer for the US House of Representatives Permanent Select Committee on Intelligence, has filed a lawsuit to seek return of computers, electronic devices and papers seized from her home in 2007. Roark, who handled the House’s oversight of the National Security Agency from 1997 to 2002, was suspected by the FBI of being a source for The New York Times‘ disclosure of the NSA’s warrantless wiretapping program STELLAR WIND, which she denies.
►►Lawsuit forces US agency to disclose CIA files. The US Veterans Administration has been ordered to disclose documents relating to the CIA’s Cold War-era experimentation on American soldiers. Beginning in the 1950s, the military and CIA utilized former Nazi scientists to test the effects of 400 types of drugs and chemicals, including mescaline, LSD, amphetamines, mustard gas, and nerve agents, on US soldiers, according to a lawsuit brought by the Vietnam Veterans of America and individual soldiers. Under the lawsuit, a judge in California has ruled the VA must hand over documents pertaining to the use of at least 7,800 service personnel as “human guinea pigs” by the US Army and the CIA.
►►Syrian spy tried to infiltrate German intelligence. A suspected Syrian spy who was arrested in Germany earlier this year and has now been charged with espionage, once tried to infiltrate the country’s intelligence services, according to German officials. The man, identified only as Akram O., was employed by Syria’s embassy in Berlin, and tasked with keeping tabs on Syrian opposition activists living in Germany. His application to work for the German federal government was made “at the behest of his intelligence agency handlers”, according to prosecutors. His application was turned down, however. The Syrian national applied for German citizenship in 2009, which was also denied.

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News you may have missed #773

August 6, 2012 by 1 Comment

Tamir PardoBy IAN ALLEN | intelNews.org |
►►Conflicting reports on CIA-ISI meeting. Lieutenant General Zahir ul-Islam, who heads Pakistan’s premier intelligence agency, the ISI, held talks in Washington with his CIA counterpart General David Petraeus, between August 1 and 3. It was the first time in a year that the chief of the ISI made the trip to the US, signaling a possible thaw in relations. Depending on the source, the meeting was either “substantive, professional and productive”, or “made no big strides on the main issues”.
►►Senior Mossad official suspected of financial misconduct. A senior Mossad official is suspected of financial misconduct and has been forced to take a leave of absence until Israeli police complete an investigation into his alleged deeds, Israeli media reported on Sunday. The official, a department head in Israel’s spy organization, has reportedly denied any wrongdoing, but sources said he would likely not be reinstated in light of investigation findings and is effectively being forced to retire. The nature of the official’s alleged misconduct has not been reported, but it is said that the official in question has close ties to Mossad Director Tamir Pardo, who appointed him to his position last year.
►►Ex-NSA official disputes DefCon claims by NSA chief. William Binney, a former technical director at the NSA, has accused NSA director General Keith Alexander of deceiving the public during a speech he gave at the DefCon hacker conference last week. In his speech, Alexander asserted that the NSA does not collect files on Americans. But Binney accused Alexander of playing a “word game” and said the NSA was indeed collecting and indexing e-mails, Twitter writings, Internet searches and other data belonging to Americans. “The reason I left the NSA was because they started spying on everybody in the country. That’s the reason I left”, said Binney, who resigned from the agency in late 2001.

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News you may have missed #772

August 3, 2012 by 1 Comment

Israeli team at the 1972 Munich OlympicsBy TIMOTHY W. COLEMAN | intelNews.org |
►►India restricts agency-to-agency contacts with CIA. According to The Deccan Herald, Indian intelligence officials are growing increasingly wary of the frequent interactions between their own intelligence personnel and the CIA. Cooperation between the US intelligence organizations and Indian government agencies has been increasing under the guise of counter-terrorism efforts. Calcutta News reports that a book published by author Prem Mahadevan, called The Politics of Counterterrorism in India, identifies at least two CIA penetrations of Indian intelligence officials since 2001.
►►Canadian spy revealed classified information in “massive leak”. As was previously reported on this blog, former Sub-Lieutenant Jeffrey Paul Delisle, a navy intelligence officer, is accused of spying for Russia. According to The New Zealand Herald, the accused Canadian spy provided the Russian government with classified information on the US, Britain, Canada, New Zealand and Australia in what is being termed a “massive leak”.
►►Germany had advance warning of 1972 Olympics massacre. Israel-based English-language newspaper The Jerusalem Post is reporting that an article in the German newsmagazine Der Spiegel, stated Germany had advance warning about a potential terrorist attack on Israeli athletes at the 1972 Olympic games. Previously classified documents accessed by Der Spiegel show that not only were there indications of a terror plot, but that there were explicit warnings and details. Perhaps more damaging are the lengths and extremes that German intelligence officials went to in order to cover up blatant mistakes in the case.

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Obama authorizes CIA to conduct ‘non-lethal covert action’ in Syria

August 3, 2012 by 5 Comments

İncirlik Air Base, TurkeyBy JOSEPH FITSANAKIS | intelNews.org |
United States President Barack Obama has officially authorized the Central Intelligence Agency to assist anti-government rebels in Syria, according to a new report by the Reuters news agency. That the US Intelligence Community is operating on the side of the Syrian rebels has been known for quite some time. British media reported in as early as June of this year that American and other Western spy agencies were sharing intelligence with the Syrian Free Army. Later in the same month, The New York Times revealed that “a growing team” of CIA operatives was participating in a multinational effort to smuggle Turkish- and Saudi-supplied weapons into Syria for use by anti-government militias. And in July we explained that, according to American media reports, the CIA’s chronic shortage of reliable agents inside Syria had led the Agency to lend its weight to several existing operations led by Turkish, Jordanian, Israeli, and other intelligence organizations in Syria. Now a new report by Reuters claims that the CIA’s activities in support of the Syrian Free Army are part of an executive order handed to the Agency by the US President earlier this year. The order, formalized through what is commonly known as a ‘Presidential Finding’, effectively authorized the CIA —America’s only government agency allowed to engage in covert action— to prioritize and concentrate its resources on the ongoing Syrian uprising. Several other US government agencies are openly backing the Syrian rebels, mostly through financial support in the form of “humanitarian assistance”. But Obama’s Presidential Finding is the first indication that the US government is engaged in covert action in Syria. The Reuters report confirms earlier indications that the ‘nerve center’ of the CIA’s operations in and around Syria is located in the southern Turkish city of Adana, home of the US-run İncirlik NATO Air Base. Read more of this post

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US-based Russian illegals ‘groomed children to be spies’

July 31, 2012 by 2 Comments

Yelena Vavilova and Andrey BezrukovBy JOSEPH FITSANAKIS | intelNews.org |
A group of Russian non-official-cover operatives, who were arrested in the United States by the Federal Bureau of Investigation in 2010, were grooming some of their children to become spies, according to insider accounts. Nearly a dozen covert members of the Russian Foreign Intelligence Service (SVR), one of the successor agencies of the Cold-War-era KGB, were detained on June 26, 2010, in a series of coordinated raids by the FBI, which marked the culmination of a lengthy counterintelligence operation against the deep-cover operatives. None of those arrested were associated with the diplomatic representation of the Russian Federation in the US; eight were married couples and all were using fake identities. But media coverage of the case, which centered overwhelmingly on the glamorous looks of one of the arrestees, Anna Chapman, paid little attention to the seven children belonging to the captured Russian operatives, whose ages ranged from 1 to 20 years at the time of their parents’ arrests. In an article published late last week, The Wall Street Journal reported that some of the SVR operatives were actively grooming their children to follow in their footsteps as unregistered agents of the Russian government in the US. The paper based its claims on discussions “with current and former US officials”, who allegedly had access to surveillance data from the FBI’s investigation against the Russians. According to the unnamed officials, the SVR operatives had secured the cooperation of at least one of the children, Tim Foley, whose parents operated in the US for over a decade under the assumed names of Donald Heathfield and Tracey Foley. The couple (real names: Andrey Bezrukov, Elena or Yelena Vavilova) had allegedly revealed their secret mission to their son “well before their arrest” in 2010, and had indicated that “they wanted him to follow in their footsteps”. According to the FBI surveillance records, says The Journal, Tim had agreed and offered to travel to Russia “to begin formal espionage training”. He eventually traveled to the land of his birth at least once following the alleged arrangement with his parents. Read more of this post

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CIA sees Israel as ‘genuine counterintelligence threat’: sources

July 30, 2012 by Leave a comment

Mossad sealBy JOSEPH FITSANAKIS | intelNews.org |
The Near East Division of the Central Intelligence Agency, America’s primary intelligence organization, views Israel as the most serious threat to its secrets, according to an exposé published yesterday by the Associated Press. Citing interviews with at least five current and former US intelligence officials, the news agency said the CIA views the Israeli spy community as “a genuine counterintelligence threat” to US interests. The intelligence officials, who spoke to the Associated Press on condition of anonymity, said the CIA believes US national secrets are less safe in the hands of Israel than in those of other governments in the region, such as Turkey, Jordan, or Lebanon. The Associated Press exposé will not surprise regular readers of intelNews, as this blog has regularly covered various aspects of the complex US-Israeli intelligence relationship. Indeed, seasoned readers of this blog may recall that a 2010 survey among officers in the CIA’s National Clandestine Service showed that they considered Israeli intelligence agencies to be the world’s least friendly and most uncooperative with their US counterparts. The survey also showed that officers in the NCS (the CIA division that includes actual operatives on the ground), also considered Israeli spy services as the world’s third most aggressive in their operations on American soil. This new report by the Associated Press seems to confirm the NCS survey results, while adding a partial explanation as to why the intelligence services of one of America’s closest geopolitical allies would be considered a threat by the CIA. It is widely thought that Israel’s intelligence agencies can often match —and sometimes surpass— their American counterparts in terms of their analytical and operational capabilities. These skills, coupled with Israel’s unique access to the inner sanctums of the American national security establishment, place the Jewish state in an unparalleled position to acquire and compromise US government secrets. Read more of this post

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Canadian spy compromised Australian, British intelligence

July 27, 2012 by 3 Comments

Jeffrey Paul DelisleBy JOSEPH FITSANAKIS | intelNews.org |
Most regular readers of this blog are undoubtedly familiar with the case of Jeffrey Paul Delisle, a Sub-Lieutenant in the Royal Canadian Navy, who until recently was employed at Canada’s ultra-secure TRINITY communications center in Halifax. Delisle was arrested in January on suspicion of passing information gathered from radio and radar signal interceptions to a foreign power, most likely Russia. Back in May, when it was disclosed that the United States helped Canadian counterintelligence investigators build their case against Delisle, we warned that “a far more important subject concerns the degree in which [Delisle’s] penetration has affected Canada’s intelligence-sharing relationship with its […] partners”. Now a new report in The Sydney Morning Herald reveals that Delisle’s espionage activities compromised Australian secrets that had been shared with Canada under longstanding intelligence cooperation arrangements. Citing “Australian security sources”, the paper said that the Delisle case “has sent shock waves through Western security agencies” due to the volume of compromised information. The Herald claims that the stolen intelligence is “on a scale comparable to the alleged handover to WikiLeaks of US military and diplomatic reports by US Army private Bradley Manning”. An unnamed “Australian security source” told the paper that Delisle’s access to classified information was “apparently very wide” and that Australian intercepts were “inevitably compromised”. Read more of this post

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Analysis: Bandar’s return affirms hawkish turn in Saudi foreign policy

July 26, 2012 by 3 Comments

Prince Bandar bin SultanBy JOSEPH FITSANAKIS | intelNews.org |
For over two decades, America’s relations with its most important Arab ally were primarily mediated by just one man: Prince Bandar bin Sultan, Saudi Arabia’s Ambassador to the United States from 1983 to 2005. But on June 26, 2005, Bandar, a personal friend of the Bush family, submitted his diplomatic resignation, after being recalled to Riyadh by Saudi Arabia’s King Abdullah. Almost immediately, Bandar, known for years in Washington’s diplomatic circles as a flamboyant socialite, disappeared from public view. It is said that he faced serious health problems, going in and out of hospitals. Others claim that he fell out of favor with Saudi Arabia’s autocratic ruling elite, and in 2009 there were even unconfirmed reports that he was under house arrest after allegedly trying to organize a military coup against King Abdullah. Last week, however, Bandar returned to the limelight in spectacular fashion: in a plainly worded statement, Saudi authorities announced that the Prince had been appointed Director General of the Mukhabarat Al A’amah, the Kingdom’s main intelligence agency.

To those who remember Bandar from his Washington days, which were filled with drinking and partying, it may seem incredible that the “peasant prince”, whose mother was one of Sultan bin Abdulaziz Al Saud’s countless underage concubines, is now heading Saudi intelligence, in what is perhaps the most challenging period in the Kingdom’s history. Read more of this post

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US spy agencies turn to Israel, Turkey, for help in Syria war

July 24, 2012 by 1 Comment

Regional map of SyriaBy JOSEPH FITSANAKIS | intelNews.org |
Just days after a senior United States defense official admitted Pentagon intelligence analysts missed early signs of the Arab Spring, a new report claims that Washington is still “struggling to understand” the Syrian situation, sixteen months into the uprising. Citing “interviews with US and foreign intelligence officials”, The Washington Post says that the US Intelligence Community has yet to develop a clear understanding of the intentions of the regime of Syrian President Bashar al-Assad. Nor have American analysts been able to draw a lucid picture of the fragmented opposition forces in the country. The paper says that, even though US spy agencies have intensified their intelligence-gathering efforts targeting all sides of the civil war, they have been unable to establish a physical presence inside Syria. This, according to The Post, is partly due to Washington’s decision, back in February of this year, to shut down the US embassy in Damascus, which has traditionally served as staging ground for Central Intelligence Agency operations inside Syria. This latest article confirms previous reports in The New York Times and elsewhere, of a small CIA team operating along the Syrian-Turkish border, with the task of overseeing a multinational effort to secretly deliver weapons, communications equipment and medical supplies to Syrian opposition forces. But this is about as close as the CIA has managed to get to Syria; for the most part, like its partner agencies in the US Intelligence Community, the Agency is “still largely confined to monitoring intercepted communications and observing the conflict from a distance”, says The Washington Post. As a result, US intelligence agencies are becoming increasingly dependent on their counterparts in Turkey, Jordan, and —most of all— Israel for reliable ground intelligence from inside Syria. Read more of this post

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News you may have missed #766 (Arab world edition)

July 23, 2012 by Leave a comment

David SheddBy IAN ALLEN | intelNews.org |
►►Yemen busts alleged Iranian spy ring. Yemeni president Abd-Rabbu Mansour Hadi called on Tehran to stay out of Yemen’s internal affairs last week, after security officials in Sana’a, Yemen’s capital, announced they had uncovered an Iranian spy ring there. Yemen’s government-run SABA news agency said the spy cell, which was allegedly led by a former commander of Iran’s Islamic Revolutionary Guard corps, had operated in Yemen as well as in the Horn of Africa,  and that it had kept an operations center in Sana’a. An interior ministry official said all those detained were Yemenis.
►►CIA sued for killing US citizens in Yemen. Survivors of three Americans killed by targeted drone attacks in Yemen last year have sued top-ranking members of the United States government, alleging they illegally killed the three, including a 16 year-old boy, in violation of international human rights law and the US Constitution. The suit (.pdf), the first of its kind, alleges the United States was not engaged in an armed conflict with or within Yemen, prohibiting the use of lethal force unless “at the time it is applied, lethal force is a last resort to protect against a concrete, specific, and imminent threat of death or serious physical injury”. The case directly challenges the government’s decision to kill Americans without judicial scrutiny.
►►US intel official acknowledges missed Arab Spring signs. David Shedd, deputy director of the US Defense Intelligence Agency, the Pentagon’s intelligence arm, said analysts failed to note signs of the unrest across the Middle East and North Africa that exploded into the Arab Spring. Shedd’s comments were posted Thursday by the American Forces Press Service, a Pentagon information wire. They constitute a rare public acknowledgment of the US intelligence failure regarding the turmoil that has redrawn the Middle East’s political landscape, toppling autocratic rulers in Tunisia, Egypt, Yemen and Libya and now engulfing Syria.

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Situation Report: Hacker convention brings out top NSA spy

July 23, 2012 by 2 Comments

DefConBy TIMOTHY W. COLEMAN | intelNews.org |
In less than a week, the 20th annual DefCon Hackers convention will take place in Las Vegas, Nevada. The yearly gathering brings out the good, the bad and the script kiddies alike. Computer security practitioners, cyber-criminals, grey and white hat hackers, law enforcement, and members of both the US intelligence community as well as probably foreign government representatives will be on hand to listen to presentations, see novel techniques, and view new innovative methods for cyber intrusion. DefCon has become a Mecca of sorts for those interested in groundbreaking developments and nefarious possibilities within the computer security and cyber realm. As organizers of the event explain in their call for presentations, “DefCon is all about thinking up cool and new ways to approach everything from the most complex modern technology to hacking grandma’s toaster […] what attack exploits, defensive techniques, or unique research [have] you have been working on”. The focus is often two-fold “how to break it”, followed by a segment on “how to fix it”. “Spot the Fed” is an ongoing and widely popular contest at the convention. The task of regular attendees is to properly identify plain-clothed members of law enforcement or the intelligence community. As DefCon explains, “if you see some shady MIB (Men in Black) earphone penny loafer sunglass wearing Clint Eastwood to live and die in LA type lurking about, point him out”.

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