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Congressman Charlie Rangel a Criminal for Violating 18 USC?

arx9968@comcast.net (arx9968) — Thu, 04 Mar 2010 12:47:00 GMT

Once again, Congress and its leadership have shown the American public that it thinks it is above the LAW of this land. Rep. Charlie Rangel of NY may very well be guilty of a criminal offense under 18 USC, even if he is a long-term Congressman. Just the same as any federal employee for willingly and knowingly taking "gifts" and freebies from what are known as PROHIBITED SOURCES, so too may Congressman Rangel. Although it may not see like much when compared to former Congressman Randy Scott Cunningham who took millions. Nevertheless, the Department of Justice and the House Ethics committee will probably find, he violated the rules under 18 USC is simply this...for which Mr. Rangel did. You MUST NOT solicit or accept a gift given because of your official position or from a prohibited source. A Prohibited source is any person or organization with more than half its membership comprised of persons that are: Seeking official action by you agency-doing or seeking to do business with you agency-conducting activities regulated by you agency (Congress- uh huh) or having interests that may be substantially affected by the performance or non-performance of your duties. Did Congressman Rangel violate this rule, it appears he did, and for a man his age, ignorance of the law is NO DEFENSE.

Privatization and Public-Private Partnerships (P3) for IT Support Services

arx9968@comcast.net (arx9968) — Thu, 04 Mar 2010 01:49:00 GMT

With so many state and local governments today in crisis due to dried up credit markets and lowered tax revenues, it is no wonder local governments are broke. Now is the time to look at new and creative Public-Private Partnerships (P3) or Transitional Benefit Corporations (TBC) processes to enable government to do for them, what it cannot alone. Counties and municipalities around the country could actually divest themselves of their IT infrastructure (government run departments which are very heavy on the budget bottom line of governments) by turning over ownership of all assets, software licenses and personnel through a IT purchase agreement process, in which a third-party developer would own, run, improve, and maintains IT infrastructure for city or county school systems, or public health hospitals, if granted a very long-term 10-15 year contract. The P3 partner would be able to provide more capital improvements and investment, to upgrade skill sets, and certifications through established contract payments coming from “several” revenue streams. The 1st revenue stream would be directly from the government body, (the base contract) with a set annual firm fixed priced amount for services rendered, and would include maintenance. The 2nd stream coming from any long-term bonds that could be floated by government or a 501 c3 organization, with a third and forth set of revenue coming from commercial sources of business that the P3 partner or the Transitional Benefits Corporation* would acquire through marketing and obtaining commercial contracts for IT support with banks, insurance firms, etc to help grown revenue. With secured financing and long-term contracts, the P3 contractor would be able to make the continued investment in IT infrastructure that governments cannot on their own, especially at this time. So how does California and local governments dig their way out of the graveyard they are headed towards? Easily, by being and thinking strategically and creatively about what they MUST do, not just what they should do for the moment. What are you do when those aging “servers” in your data centers crap out on you? Haven’t thought about that huh? You need to soon. For those with concerns about relinquishing IT control and quality, the contract agreement would be a well-thought out, reasoned vehicle that would mutually benefit both sides (government and industry). Government would still maintain an oversight role for the life of the P3 or TBC contract, and all future terms, as with any other contract, but with much less staff. The current staff would have been pushed to industry. Further, with the TBC process, all former government employees would NOT lose their retirement or health benefits if they were evolved into a TBC arrangement. In fact, if a TBC took place and was well-planned those former government employees could end up millionaires much earlier than if they remained working in IT for the government at a set or even better yet, declining salary. *TBC is a patented process created by Steve Sorett, Esq., McKenna Long & Aldridge LLP. Interested? Call me today for more information at 703-919-4617. Robert Knauer, CPCM CPPO and I will be happy to discuss with you, and your government agency the TBC or P3 process.

What’s wrong with state and local IT contracting?

arx9968@comcast.net (arx9968) — Thu, 04 Mar 2010 01:43:00 GMT

So what’s wrong with state and local IT contracting today? Approximately 85 percent of state and local government IT projects end up going over budget at completion, or exceed scheduled target delivery dates, or both. Acquisition experts like Robert Knauer, President of the Acquisition Institute Incorporated says, “There are ways to curb large scale procurement risks, by using fully functioning integrated acquisition and program management software that applies Earned Value Management to programs to make sure that both government officials and IT vendors are sufficiently aware of project requirements prior to signing on to any complex long-term contract of any kind. Mr. Knauer went on to say, “that Government can use a two-phased RFP process (which the federal government has been using for many years) or known as “multi-stage” contracting below the federal level. It involves the government soliciting vendors and going through a “down-select” process to select certain qualified finalists that will go into phase two. Those selected in the phase one down-select can either obtain “seed money” from the government for the project to develop a run-off prototype or demo (contracts may also be reimbursed for their actual expenses). During the phase-two stage of the competition, a live demonstration is performed, enabling government source selection officials to review the prototypes or best demo, and select the best-value winner. This can be a lengthy and somewhat arduous process. Other ways exist to shorten the acquisition timeline and promote best-value that are truly performance based. Some state and local governments they think they are reducing risk by adding damage clauses to contracts, but such liquidated damage clauses only serve to increase the competitive price of any project, and further end up being very litigious in nature. It is often interesting that what state and local governments do is nearly 20 years behind that of the Department of Defense and the rest of the federal government said Mr. Knauer. He went on to say, “a better practices to make IT contracts performance based, is to provide performance based payments as part of the contract by attaching payments to completion milestones of the IT project, and requiring the team that presents a proposal to be the actual key-team that deploys it.” In the design of any complex performance based project whether for IT services and IT integration, or some other form of complex acquisition, it is important to use the Seven Step process to performance based acquisition which starts out with forming an Integrated Process or Solutions Team (IPT or IST) that is composed of well-trained (SME) personnel, but not necessarily high ranking officials from key functions within an agency (IT, Legal, contracting, finance, Management, etc), who take part in the planning and RFP development process. AS in the federal government, for each and every complex program, there would be a senior designated Program Manager, or PM. The PM and his/her team should have a review board and have monthly status reports for department members with a stake in the project. As projects progress, all the facets of Earned Value Management need to occur, and agencies should only re-baseline if in the best interest of all parties, with valid reason, and only if agreed by all parties and the PM. With any acquisition program, it is most important to make sure that daily, weekly and monthly performance monitoring occurs with the contractor to ensure project metrics are being met and conform to established service level objectives for the project. This is why so many program simply fail.

AMERICAN THE PROUD, THE BEAUTIFUL-THE FAT!

arx9968@comcast.net (arx9968) — Wed, 06 Jan 2010 16:14:00 GMT

HAVE YOU BOTHERED TO SEE THE MOVIE "SUPER-SIZE IT" If not, go to Hulu.com and search for it, watch it. It's about 1 hour and 15 minutes long and will truly open your eyes to what is wrong with parents, people and fast food. But, one of the scense in the movie was a school of misfits where the school district decided to opt out of using Fast Food in their school cafeterias and use fresh foods. The students got leaner, better grades and stopped being an issue. Now here is another example of smart pratcies........where Schools Using Local Growers as listed in the Charleston Daily Mail (WV)(12/28/09) P. P1A; Harold, Zack Jefferson County, W.Va., schools are using local farmers to supply their food through a farm-to-school program. In 2008 the school system collaborated with local grower Kilmer Fruit to provide produce to the county's schools. Kilmer Fruit owner Derek Kilmer says that his company expanded its selection by partnering with other local farms for vegetables and bringing produce back from the company's deliveries. Gary Hendricks with Kanawha Schools' Office of Child Nutrition says that it would be problematic for schools to buy from local growers because the U.S. Department of Agriculture (USDA) mandates that they obtain bids for food contracts. However, Jefferson County Commission's Kellie Boles counters that taking bids on a produce contract would not be possible since prices of fruits and vegetables fluctuate every day based on availability. Schools can therefore purchase produce from anyone as long as they comply with USDA's Good Agricultural Practices. Hendricks and Cabell County's Michael O'Dell say that buying local crops might cause their counties' food costs to increase, but Jefferson County board of education member Scott Sudduth says that this has not been the case so far. He notes that USDA officials are working on incentive programs to spur schools to buy from local growers while still maintaining the food's affordability. Another benefit of the farm-to-school program has been that the Jefferson County school system is wasting less food, according to official Ralph Dinges

Editor's Note: Upswing in Airborne Terrorism

arx9968@comcast.net (arx9968) — Sun, 27 Dec 2009 22:47:00 GMT

The most recent attempt at downing a plane (Flight 253) by an Al-Qaeda member points out just how little information the news media really gets correct, and how utterly lacking TSA and Homeland Security are when it comes to doing their jobs! Most Americans do not mind putting up with measures by TSA and our country if it is meant to truly protect us all-if they do their jobs correctly-but they do not! So, here are some very basic and very simple things that TSA and the Congress need to do to make things right. Simply put, a couple things that I will list for you now that our Government including the President, Congress, TSA, Homeland Security and the airlines should agree to do to stop the insantiy: #1) based on this incident-remove all blankets from aircraft (People can wear a damn jacket or sweater. If terrorist don't have them, they can't hide or start fires #2) Put into place at all US airports what we were promised five years ago by that idio BUSH a 360 degree explosive x-ray sniffer at all points. They have at only 2% of all U.S. airports now, and this would speed up the security process, making everyone safer. For God sakes, the Bush Administration ONLY HAD EIGHT F___ years to get the job done since he said "mission accomplished" and now OBAMA? #3) Force airlines to stop serving drinks 1 hour prior to landing so that people don't need to use the restrooms anymore, and why are we serving alcohol anyway? #4) require that 100% of all baggage be checked from here on out(no more hand-carried luggage shall be allowed aboard any planes) #5) ensure that no airline company is allowed to charge passengers for excess luggage if #4 is applied #6) perform better enforcement of No-fly lists, which they did not do in this case. Christ! What does it take for the STATE, CIA, NSA, FBI, TSA to talk to themselves? Cant the President fire some incompetent boob at the political level for this direlication of duty? #7) do a better job screening and hiring better, more high quality TSA agents rather than some of the "lesser-quality" personnel I have encountered in my travels (low IQ and government drones) #8) ensure that all flights originating from friendly countries (Mexico, Canada, Netherlands, etc) have the same level of screening we do in the United States, (Case in Point: Last month, when my wife and I returned from Mexico we did not have to take off OUR SHOES, OUR BELTS, OUR COATS, OR PUT OUR LAPTOP PC in a separate tray in Cozumel, Mexico like we did when we left the United States-How come? Sounds like a very easy point of entry point for terrorist, huh? #9) we must begin STRONG PROFILING of all passengers especially those from Middle-Eastern and Muslim oriend Asian countries such as Indonesia. Hey muslim- you don't like it? Move to another country. #10) Require by law that airlines be penalized for every single piece of luggage they lose to the point that they either get the luggage system right, or they go out of business. I don't want my bags to end up in East Mississippi being sold at some bargain basement warehouse because the airlines lost it. Now, none of these things I mention require mouch money or foresight on the part of our leaders, or the airlines, if we do these things we will not have any further events such as what we witnessed on Christmas Day with Flight 253. Just think about it, if we had REAL STRONG leaders in our federal agencies and REAL leaders in our Congress to make these few little changes- our world as we know it would if fact be a much safer place for all. It's not that hard to protect America or American borders. If we were pissing every single hard earned tax dollar down the drain in IRAQ and AFGHANISTAN to no good end, we'd have the money to do what we need to do here. Please chim in--and stop whinning about being able to carry your laptop travlers, you have a blackgerry and USB Stick-isn't that enough? PS...the news reported that the terrorist had to get the vile with the explosives out of his underpants (his anus) in order to inject into the PENT explosive that was in his underpants, so do you really think somebody as dedicated and willing to go through that kind of effort can be guarded against without the 360 degree full body scanners in use? If you do, then you are a moron, sir or madam.

Letter to Senator Bill Nelson on FAA's Fraud Waste and Abuse of Taxpayer Funds

arx9968@comcast.net (arx9968) — Fri, 25 Dec 2009 17:59:00 GMT

Dear Senator Nelson: In this day and age with so many millions of Americans being unemployed and homeless due to the poor economy and our nation struggling to find money to support wars on two fronts, healthcare, and keep our government running, as a small business owner and taxpayer that I find the FAA’s actions as reported by Brian Ross of ABC about the three-week drunken orgy and food fest, blessed with alcohol everywhere that for taxpayers to foot the bill for the travel and per diem expenses of over three-thousand FAA managers to be flown in from all over the country to Atlanta is absurd! This wasteful taxpayer expense is unethical, immoral, and totally unjustifiable at any level. The American public deserves better! As a former Government employee of 32 years, now retired, who abided by the Standards of Conduct I take such issues to heart. What the FAA employees in attendance along with their leadership have done is a knowing violation of § 2635.101 Basic obligation of public service, section (b) at subsection says…(5) Employees shall put forth honest effort in the performance of their duties. and then there is the section that says… and (14) Employees shall endeavor to avoid any actions creating the appearance that they are violating the law or the ethical standards set forth in this part. Whether particular circumstances create an appearance that the law or these standards have been violated shall be determined from the perspective of a reasonable person with knowledge of the relevant facts. Furthermore, anyone with sense would know that such a party is a violation of § 2635.705 Use of official time. Unless authorized in accordance with law or regulations to use such time for other purposes, an employee shall use official time in an honest effort to perform official duties. An employee not under a leave system, including a Presidential appointee exempted under 5 U.S.C. 6301(2), has an obligation to expend an honest effort and a reasonable proportion of his time in the performance of official duties. ACTION NEEDED: The FAA leadership has violated the public’s trust and should be investigated by Congress to get to the bottom of why this occurred, why there is such misuse of public office, and to require each and every FAA manager/employee in attendance to repay back to the American public the funds used during their attendance at the three week orgy in Atlanta wasting travel, per diem and government official time.Please advise what action your office will take in this regard. As a constituent I demand more from our Government leaders, and so should you and the President.

FAA WASTES TAXPAYER FUNDS AND DOESN'T CARE

arx9968@comcast.net (arx9968) — Fri, 25 Dec 2009 16:42:00 GMT

In a recent undercover report by Bryon Ross, the FAA leadership and its Air Traffic Organization managers have shown their blantant disregard for ethics and integrity by wasting over $5 million dollars in hard earned taxpayer tax dollars through a three week long, drunken orgy, intential misue of position and use of official government time for the sake of having fun while many millions of American are out of work, unemployed, and homeless. Shame on you FAA Leadership!

DO YOU KNOW WHAT'S ON YOUR HOTEL KEY CARD?

arx9968@comcast.net (arx9968) — Wed, 02 Dec 2009 02:58:00 GMT

IMPORTANT SECURITY INFORMATION! WHAT'S ON YOUR HOTEL KEY CARD? Reprinted from Ralph Thomas (friend and PI) good stuff to know for all Government Travelers and much important information for those who didn't know. DO YOU KNOW THE SECRET BEHIND YOUR HOTEL KEYCARD?Ever wonder what is on your magnetic key card? Well, it includes a) Your customer name b)Customer...'s partial home address c) Hotel room number d)Check-in date and out dates and most importantly e) Your credit card number and expiration date--you dummy! When you turn them in to the front desk your personal information is there for any employee to access by simply scanning the card in the hotel scanner. An employee can take a hand full of cards home and using a scanning device, access the information onto a laptop computer and go shopping at your expense. Simply put, hotels do not erase the information on these cards until an employee re-issues the card to the next hotel guest. At that time, the new guest's information is electronically overwritten on the card and the previous guest's information is erased in the overwriting process...But until the card is rewritten for the next guest, it usually is kept in a drawer at the front desk with YOUR INFORMATION ON IT!The bottom line is: Keep the cards and take them home with you, or destroy them. NEVER EVER leave them behind in the room or room wastebasket, and NEVER turn them into the front desk when you check out of a room. Hotels cannot charge you for the card (it's illegal) and you'll be sure you are not leaving a lot of valuable personal information on it that could Be EASILY lifted off with any simple scanning device card reader. For the same reason, if you arrive at the airport and discover you still have the card key in your pocket, do not toss it in an airport trash basket. TAKE THE CARD HOME and destroy it by cutting it up, especially through the electronic Information strip!Information courtesy of: Ralph Thomas PI and the Pasadena Police Department..Take a small magnet and pass it across the magnetic strip several times.. Then try it in the door, it will not work. It erases everything on the card. Be nice and forward this blog to all your Government co-workers, I am sure they do not know this. Robert Knauer, CPCM

A Good Read: "Fall From Glory: The Men Who Sank the U.S. Navy" from (Simon & Schuster) Touchstone Ed., 1997, 478 pages

arx9968@comcast.net (arx9968) — Fri, 27 Nov 2009 21:22:00 GMT

This 1997 book written by Gregory Vistica, a reporter for Newsweek at the time, tells of how the Navy brass really operated during the Reagan years. Although the book centers around the Secretary of the Navy, John Lehman, under Ronald Reagan, it goes on to discuss how Lehman destroyed anyone that stood in his way of a bigger Navy with battleships (useless by the way) and his bigger navy budget. Many tough-sounding flyboys such as Lehman were the darlings of the fanged neocons who littered the Reagan years. Not much different that the men who recently licked the heels of President George Bush year after year, which left our country in a financially disasterous mess today. The book points out that a much more sober analysis of the true Soviet threat at the time might have shown it to be false, and could have saved billions of dollars from being wasted trying to overthrow the Soviets---much as today, a better analysis of our world's situation would keep American taxpayers from spending trillions ($) in the ill-conceived war of George Bush in Iraq and Afghanistan which will in fact crush our nation as military overspending crushed the Soviet Union because of their ill-conceived war in Afgahistan. The book goes on to point out it wasn't just secretary John Lehman, and those like him that ruined the Navy, but many other high-ranking navy officer with immoral and unethical behavior, some even criminal. Admirals, captains, and other high-ranking naval officers are shown in this Vistica book that they thought they were above the laws of this land and even the Uniform Code of Military Justice (USMJ). Author Gregory Vistica takes the reader through the scenes of TAILHOOK, the Admiral Boorda suicide, ILL Wind’s procurement scandal, the John Walker Spy case, the Iowa Battleship explosion and cover-up, and yes, even the Captain Melvin D. Munziner incident where a skipper was accused of and investigated by the Navy Office of Inspector General, and by then Senator William Proxmire, Chairman of the Senate Armed Services Committee for killing whales(endangered species) with the XO, Operations Officer and other for sport, purposely running over a Korean fishing fleet and destroying government property. f there is anything learned from years in government and the military is that Mr. Visctica's book is not far off base, but instead just the tip of the iceberg when it comes to immorale and unethical behavior exhibited by many high ranking officers in the navy. This is a MUST read for anyone who thinks the American Navy is free from corruption and bad behavior such as Capt. Mel Munzinger and his antics in Subic. Cudos to Mr. Vistica for this well-written book!

Commerce Employee Entered into Pretrial Diversion Program for Metrocheck Fraud, Removed From Federal Service

arx9968@comcast.net (arx9968) — Thu, 26 Nov 2009 00:44:00 GMT

An Office of the Secretary employee was arrested on charges of first degree theft by OIG special agents and the Washington, DC Metropolitan Police. The employee had fraudulently obtained and given away $1,950 in transit subsidy benefits that she had received while also maintaining an assigned parking permit at the Commerce headquarters building. In October 2008, the employee pleaded guilty, agreed to a deferred prosecution, and was admitted into the First Time Offender Diversion Program with the Superior Court of the District of Columbia. She was also ordered to pay full restitution in the amount of $1,950. In January 2009, she was removed from her position for misrepresentation in the receipt of transit subsidy benefits and for transferring transit subsidy benefits to a third party.

Former Census Contractor Sentenced for Money Laundering

arx9968@comcast.net (arx9968) — Thu, 26 Nov 2009 00:43:00 GMT

DOC OIG assisted Immigration and Customs Enforcement (ICE) with the investigation of a Census Bureau contractor, resulting in his conviction in the US District Court for the District of Columbia on one count of conspiracy to launder monetary instruments. On February 13, 2009, the defendant was sentenced to 9 years incarceration and ordered to serve 2 years supervised probation upon his release. Debarment proceedings are pending against the individual and his affiliated CPA firm to prevent them from obtaining future government contracts.

NOAA Grantee Sentenced for Misusing Funds

arx9968@comcast.net (arx9968) — Thu, 26 Nov 2009 00:42:00 GMT

A NOAA grantee pled guilty on charges of violating 18 USC § 666, prohibiting theft concerning federal programs. The employee misappropriated NOAA funds on multiple occasions in May 2006, when he withdrew a total of $60,000 from a $109,886 grant to buy, among other things, methamphetamines and a Rolex watch. The one-year grant had been awarded for the purpose of developing a small boat tuna pole and line training program to train 40 native Hawaiian people in fishing techniques. On January 20, 2009, the individual was sentenced to a year plus one day of incarceration in federal prison, followed by three years’ supervised release. The defendant was also ordered to pay restitution for the full amount of $60,000.00 and pay a special assessment of $100.00.

Former PTO Employee Sentenced 18 Months in $500,000 Embezzlement Scheme

arx9968@comcast.net (arx9968) — Thu, 26 Nov 2009 00:31:00 GMT

(Alexandria, Va) - Karen L. Parish, 39, of Woodbridge, Va., was sentenced today to 18 months in prison, followed by three years of supervised release, for embezzling $500,000 from the U.S Patent and Trademark Office. She was also ordered to pay $527,478.55 in restitution. Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Scott Berenberg, Assistant Inspector General for Investigations for the U.S. Department of Commerce, made the announcement sentencing by United States District Judge T.S. Ellis, III. Parish pled guilty to conspiracy to commit wire fraud on Aug. 27, 2009. According to court records, Parish was a financial analyst for the U.S Patent and Trademark Office. She managed an account to which PTO customers deposited funds that were to be used to pay expenses incurred in processing their patent and trademark applications. Over a period of seven years, Parish transferred funds from this account to accounts controlled by co-conspirator Michael Reid, 50, of Fort Washington, Md. Parish fraudulently concealed the transfers by falsely making them look like refund payments to PTO customers. During the course of the conspiracy, Parish and Reid stole $534,338.55 from the PTO. Reid pled guilty on Aug. 10, 2009, and was also sentenced today by United States District Judge Claude M. Hilton to 18 months in prison, followed by three years of supervised release. Reid will also be required to pay, jointly with Parish, $527,478.55 in restitution. The case was investigated by the U.S. Department of Commerce Office of Inspector General. Assistant United States Attorney Edmund P. Power is prosecuting the case on behalf of the United States. A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at www.vaed.uscourts.gov or on pacer.uspci.uscourts.gov.

COTR REFRESHER COURSE

arx9968@comcast.net (arx9968) — Fri, 20 Nov 2009 01:23:00 GMT

Press Release: COTR REFRESHER COURSE AT UVA

New Blog Site for Ethics

arx9968@comcast.net (arx9968) — Thu, 19 Nov 2009 15:03:00 GMT

Check out other Ethics issues at http://ethicsingovernmentcontracting.blogspot.com/

COMING SOON--NCMA ARTICLE ON ETHICS AND HOW NOT TO GO TO JAIL WHEN DEALING WITH FEDERAL AUTHORITIES AND POLICE

arx9968@comcast.net (arx9968) — Sat, 07 Nov 2009 02:22:00 GMT

COMING SOON!! In January 2010’s NCMA magazine along with this BLOG we will feature an article that every government employee must not only read but re-read read to save themselves from the anguish, emotional and financial punishment that awaits each any every one of YOU-for being NAÏVE (stupid) when speaking with federal agents. As a contracting officer, federal employee, and citizen, we are all taught from the day we enter elementary school that law enforcement is your friend (buddy). Well, they are not your friend EVER--find out why in our upcoming release of this hard hitting Ethics article every GS and SES will want to read and re-read.

Acquisition Training at 1/4th the prices GSA Grad School and ESI charge!

arx9968@comcast.net (arx9968) — Sat, 07 Nov 2009 02:10:00 GMT

for more information on obtaining really affordable acquisition training for your agency at prices one-forth those of GSA Grad School, or ESI International, go to: http://www.prlog.org/10404176-need-affordable-contracting-officer-representative-cotr-training.html

COTR Refresher Class sponsored by UVA on 11 January 2010

arx9968@comcast.net (arx9968) — Thu, 05 Nov 2009 00:37:00 GMT

If you go to this link: www.prweb.com/releases/2009/11/prweb3156984.htm you will be able to find out more about the one-day COTR Refresher Class being held at the University of Virginia Commuter Campus on 11 January 2010.

ETHICS: US scientist charged with espionage for Israel

arx9968@comcast.net (arx9968) — Wed, 28 Oct 2009 14:17:00 GMT

FROM REUTERS www.reuters.com/article/press...09+PRN20091019 WASHINGTON, Oct. 19 /PRNewswire-USNewswire/ -- A Maryland scientist who once worked in varying capacities for the Department of Energy, the Department of Defense and the National Aeronautics and Space Administration has been arrested for attempted espionage, David Kris, Assistant Attorney General for National Security, Channing D. Phillips, Acting U.S. Attorney for the District of Columbia, and Joseph Persichini, Jr., Assistant Director for the FBI's Washington Field Office, announced today. A criminal complaint unsealed today in the District of Columbia charges Stewart David Nozette, 52, of Chevy Chase, Maryland, with attempted espionage for knowingly and willfully attempting to communicate, deliver, and transmit classified information relating to the national defense of the United States to an individual that Nozette believed to be an Israeli intelligence officer. The complaint does not allege that the government of Israel or anyone acting on its behalf committed any offense under U.S. laws in this case. Nozette was arrested earlier today by FBI agents and is expected to make his initial appearance tomorrow in U.S. District Court for the District of Columbia. If convicted, he faces a maximum sentence of life in prison. "The conduct alleged in this complaint is serious and should serve as a warning to anyone who would consider compromising our nation's secrets for profit," said David Kris, Assistant Attorney General for National Security. "Those who would put our nation's defense secrets up for sale can expect to be vigorously prosecuted," said Channing D. Phillips, Acting U.S. Attorney for the District of Columbia. "This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security for his or her own personal gain." "The FBI is committed to protecting the nation's classified information and pursuing those who attempt to profit from its release or sale," said Joseph Persichini, Jr., Assistant Director for the FBI's Washington Field Office. According to an affidavit in support of the criminal complaint, Nozette received a Ph.D. in Planetary Sciences from MIT in 1983, and worked at the White House on the National Space Council, Executive Office of the President, in 1989 and 1990. He developed the Clementine bi-static radar experiment that purportedly discovered water on the south pole of the moon. Nozette also worked at the Department of Energy's Lawrence Livermore National Laboratory from approximately 1990 to 1999 where he designed highly advanced technology. At the Department of Energy, Nozette held a special security clearance equivalent to the Defense Department Top Secret and Critical Nuclear Weapon Design Information clearances. Department of Energy clearances apply to access to information specifically relating to atomic or nuclear-related materials. Nozette was also the President, Treasurer and Director of the Alliance for Competitive Technology (ACT), a non-profit corporation that he organized in March 1990. Between January 2000 and February 2006, Nozette, through his company ACT, entered into several agreements to develop advanced technology for the U.S. government. Nozette performed some of this research and development at the U.S. Naval Research Laboratory in Washington, D.C., the Defense Advanced Research Projects Agency in Arlington, Virginia, and the National Aeronautics and Space Administration Goddard Space Flight Center in Greenbelt, Maryland. From 1989 through 2006, Nozette held security clearances as high as Top Secret and had regular, frequent access to classified information and documents related to the U.S. national defense. According to the affidavit, on Sept. 3, 2009, Nozette was contacted via telephone by an individual purporting to be an Israeli intelligence officer, but who was in fact an undercover employee of the FBI (UCE). During that call, Nozette agreed to meet with the UCE later that day at a hotel in Washington D.C. According to the affidavit, Nozette met with the UCE that day and discussed his willingness to work for Israeli intelligence. Nozette allegedly informed the UCE that he had, in the past, held top security clearances and had access to U.S. satellite information. Nozette also allegedly said that he would be willing to answer questions about this information in exchange for money. The UCE explained to Nozette that the Israeli intelligence agency, or "Mossad," would arrange for a communication system so that Nozette could pass information to the Mossad in a post office box. Nozette agreed to provide regular, continuing information to the UCE and asked for an Israeli passport. According to the affidavit, Nozette and the UCE met again on Sept. 4, 2009, in the same hotel. During the meeting, Nozette allegedly informed the UCE that, although he no longer had legal access to any classified information at a U.S. government facility, he could, nonetheless, recall the classified information to which he had been granted access, indicating that it was all still in his head. In the meeting, Nozette allegedly asked when he could expect to receive his first payment, specifying that he preferred to receive cash amounts "under ten thousand" so he didn't have to report it. At the conclusion of this meeting, Nozette allegedly informed the UCE, "Well I should tell you my first need is that they should figure out how to pay me... they don't expect me to do this for free." On or about Sept. 10, 2009, undercover FBI agents left a letter in the designated post office box for Nozette. In the letter, the FBI asked Nozette to answer a list of questions concerning U.S. satellite information. The undercover agents also provided a $2,000 cash payment for Nozette. The serial numbers of the bills were recorded. Nozette retrieved the questions and the money from the post office the same day. On or about Sept. 16, 2009, Nozette was captured on videotape leaving a manila envelope in the designated post office box in the District of Columbia. The next day, FBI agents retrieved the sealed manila envelope that Nozette had dropped off and found, among other things, a one-page document containing answers to the questions posed by the undercover agents and an encrypted computer thumb drive. One of answers provided by Nozette contained information classified as Secret, which concerned capabilities of a prototype overhead collection system. In addition, Nozette allegedly offered to reveal additional classified information that directly concerned nuclear weaponry, military spacecraft or satellites, and other major weapons systems. Also on or about Sept. 17, 2009, undercover FBI agents left a second letter in the post office box for Nozette. In the letter, the FBI asked Nozette to answer another list of questions concerning U.S. satellite information. The FBI also left a cash payment of $9,000 in the post office box. Nozette allegedly retrieved the questions and the money from the post office box later that same day. On or about October 1, 2009, Nozette was filmed on videotape leaving a manila envelope in the post office box. Later that day, FBI agents retrieved the manila envelope left by Nozette and found a second set of answers from him. The answers contained information classified as both Top Secret and Secret that concerned U.S. satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information, and major elements of defense strategy. This investigation was conducted by the FBI's Washington Field Office with assistance from the Naval Criminal Investigative Service and the Air Force Office of Special Investigations. The prosecution is being handled by Trial Attorneys Deborah A. Curtis and Heather M. Schmidt, from the Counterespionage Section of the Justice Department's National Security Division, and Assistant U.S. Attorney Anthony Asuncion, from the U.S. Attorney's Office for the District of Columbia. The public is reminded that a criminal complaint contains mere allegations and that every defendant is presumed innocent unless and until proven guilty. SOURCE U.S. Department of Justice

DOD Employee Charged with Espionage

arx9968@comcast.net (arx9968) — Wed, 28 Oct 2009 14:13:00 GMT

A Department of Defense (DoD) official has been charged this week with conspiracy to communicate classified information to an agent of a foreign government. A criminal complaint unsealed in the Eastern District of Virginia alleges that, from November 2004 to February 11 of 2008, James Wilbur Fondren, Jr., conspired with others to hand over information to The People’s Republic of China. According to an affidavit filed with the complaint, Fondren retired from active duty as a Lieutenant Colonel in the U.S. Air Force in May 1996. In 1998, he began providing consulting services from his Virginia home. Fondren’s sole client for his business was a friend by the name of Tai Shen Kuo. Kuo was a naturalized U.S. citizen from Taiwan who lived primarily in Louisiana and maintained business interests in the United States and China. Kuo also maintained an office in China. Unbeknownst to Fondren, Kuo worked under the direction of a Chinese government official. This official provided Kuo with detailed instructions to collect certain documents and information from Fondren and other U.S. government officials, paying him approximately $50,000 USD for completing these tasks. Fondren allegedly provided Kuo with a variety of sensitive data, including classified information from a State Department cable, classified information about the U.S. visit of a Chinese military official, classified information about a joint American and Chinese naval exercise, and classified information regarding military meetings between the U.S. and China. In one instance, Fondren provided Kuo with a draft Defense Department report on China's military and stated to Kuo: "This is the report I didn’t want you to talk about over the phone... Let people find out I did that, it will cost me my job." Fondren (62) worked at the Pentagon and was the deputy director for the Washington Liaison Office of U.S. Pacific Command (PACOM). Fondren had his initial appearance yesterday in U.S. District Court in Alexandria, Va. If convicted, he faces a maximum five years imprisonment and a $250,000 USD fine. "We are seeing the tip of the iceberg with insider threats. In fact, over half of the tried cases on the Department of Justice Web site involve insiders. One wonders how many insider incidents are not being reported or remain undetected. This is a big problem and the facts remain that it is not going away by itself -- it is only getting larger and far more visible," commented Rob Grapes, chief technologist of Cloakware in a brief chat with The Tech Herald. Grapes stressed that, while in this case Fondren had access privileges, "clearly even those trusted insiders need to be scrutinized. Monitoring and preventing insider attacks requires both technology and policy to circumvent incidents." "Technology can be leveraged to implement lowest level of privilege, delegated access, strong authentication, rights management, security event management monitoring, reporting, and more," he added. "Policies need to be in place to control the behavior of the organization, perform the hiring diligence, enforce the recertification of permissions, process the exits, and respond to incidents to make sure reduce the consequences of insider attacks and espionage."