Counterintelligence News for the week of:

January 14-20, 2007

Negroponte Calls Intelligence Restructuring a 'Work in Progress'

The "complex and demanding" process of restructuring the U.S. intelligence community is still "a work in progress" after 22 months of effort, John D. Negroponte said yesterday in a farewell address wrapping up his tenure as the first director of national intelligence...He said one success was the way various organizations worked together during the 2006 Lebanon-Israel crisis to determine which agency was best positioned to gather certain types of intelligence and share it with others, reducing duplication of effort…..(Washington Post, 20 Jan 07)

Telecom Italia embroiled in new espionage scandal

Milan magistrates have arrested four Telecom Italia employees for alleged illegal espionage activities, bringing a fresh wave of scandal crashing down onto the former national carrier. The suspects were identified as Fabio Ghioni, the head of information security at Telecom Italia; his assistant, Rocco Lucia; and Guglielmo Sasinini, a former journalist who had been hired by the company to conduct country risk analyses for the Middle East region, according to a 230-page arrest warrant signed by Judge Giuseppe Gennari….(Info World, 19 Jan 07)

Journalist Jailed For Spying To Serve His Sentence Nearer Home

A Hong Kong-based journalist who was jailed for spying in China last year will serve the rest of his sentence closer to home, his family said Friday. Cheong Ching, a correspondent for the Singapore Straits Times, will be moved from a Beijing jail to one in Guangdong province, which borders Hong Kong…(UPI, 19 Jan 07)

Intelligence reform crossroads

The intelligence community is at a crossroads. Ambassador John Negroponte leaves as director of national intelligence after more than a year and a half spent vigorously laying the groundwork for long-term reform of the intelligence community. Adm. Michael McConnell arrives on the scene with the opportunity to mold these efforts into lasting reform….(Washington Times, 19 Jan 07)

Sandra A. Kruzman CIA Official

Sandra A. Kruzman, 63, a retired CIA official, died of sepsis Jan. 2…Ms. Kruzman, who joined the agency in 1966, was the first woman to become the associate deputy director for intelligence, the No. 2 position in the Directorate of Intelligence….(Washington Post, 19 Jan 07)

More Jurors on Standby in CIA Leak Trial

A federal judge is putting more potential jurors on standby in the CIA leak trial because so many people have been dismissed, mostly because of strong feelings against the Bush administration and the Iraq war….(AP, 19 Jan 07)

Thompson appointed to House Intelligence Committee

U.S. House Speaker Nancy Pelosi has appointed Rep. Mike Thompson, D-St. Helena, to the House Permanent Select Committee on Intelligence….

(Times-Standard, 19 Jan 07)

Fight Over Reporter's Notes Averted

Defense attorneys withdrew, for now, their request to use NBC News reporter Andrea Mitchell's notes during the CIA leak case, heading off a potential fight leading up to the trial of former White House aide I. Lewis "Scooter" Libby….(AP, 19 Jan 07)

Jury Selection in Libby Trial Moves Slowly Because of Bias

The task of seating a jury for the perjury trial of I. Lewis Libby Jr. did not get easier Thursday when a majority of the candidates interviewed were disqualified, mainly because they expressed deep distrust of the Bush administration and the Iraq war….(New York Times, 19 Jan 07)

Harman to head House subcommittee

Rep. Jane Harman (D-Venice) was named Thursday to head the intelligence subcommittee of the Homeland Security Committee….(LA Times, 19 Jan 07)

Russian Federation: Concerns about scientists, journalists and lawyers being targeted through criminal cases concerning treason and divulging state secrets

On the occasion of the forthcoming debate of the Parliamentary Assembly of the Council of Europe (PACE) on Fair trial issues in criminal cases concerning espionage or divulging state secrets (Report by Rapporteur Christos Pourgourides, Committee on Legal Affairs and Human Rights at PACE, Doc. 11031), Amnesty International highlights its longstanding concerns about the targeting of scientists and journalists in the Russian Federation for having exchanged information that was alleged to be publicly available as well as their professional opinions with foreign contacts….(Amnesty International, 19 Jan 07)

White House Shifting Tactics in Surveillance Cases

…In a letter on Wednesday, Colleen Kollar-Kotelly, the presiding judge of the 11-member court, the Foreign Intelligence Surveillance Court, said she would have no objection to the release of the relevant orders to lawmakers if the Justice Department approved. But Mr. Gonzales indicated that the department would object to the release of at least the “operational details” disclosed in the orders.…(New York Times, 19 Jan 07)

Concern over China's missile test

China is facing international criticism over a weapons test it reportedly carried out in space last week. Japan has expressed concern, as have the US and Australia. It is thought that the Chinese used a ground-based medium-range ballistic missile to destroy a weather satellite that had been launched in 1999…The test, if confirmed, would mean that China could now theoretically shoot down spy satellites operated by other nations. It would be the first such test since the 1980s, when both the US and the Soviet Union destroyed satellites in space….(BBC, 19 Jan 07)

Britain rapped over Saudi arms move

…The news came as it emerged last night that MI6, the Secret Intelligence Service, had apparently won its battle not to "endorse" the Government's national security reason for dropping the probe in a letter to the Organization of Economic Co-operation and Development….(Telegraph, 19 Jan 07)

Spying in Baghdad: The CIA’s Real Mission Impossible

…According to several well informed intelligence sources, hundreds of CIA operatives have become virtual prisoners in the Green Zone, the sprawling American enclave whose high walls and guards separate the U.S. embassy, military command and related civilian agencies from the raging sectarian violence in Baghdad’s streets. The CIA operatives cannot safely roam the city to meet their few agents, much less recruit new ones. …(CQ, 19 Jan 07)

Top Lawmaker Demands Answers from Justice Department

The ranking member of a House committee is demanding answers from the Justice Department about recent reports in The New York Sun that intelligence agencies failed to cooperate with FBI investigations into leaks of classified material and that the FBI's files on some leak probes have disappeared….(New York Sun, 19 Jan 07)

Negroponte says domestic spy program was critical

U.S. intelligence chief John Negroponte on Friday cited the Bush administration's recently disbanded domestic spying program as a critically important post-September 11 change in intelligence practices….(Reuters, 19 Jan 07)

Senate votes to declassify intelligence spending

The Senate Select Committee on Intelligence on Wednesday approved legislation to declassify the top line of the U.S. intelligence budget and make public the total amount of federal dollars spent on intelligence activities each year….(Washington Technology, 19 Jan 07)

Senators Demand Details on New Eavesdropping

…Senators from both parties who had long criticized the eavesdropping without court warrants said at a Judiciary Committee hearing that they welcomed the change but wanted details. They said they wanted to be sure that the new rules adequately protected Americans’ privacy….(New York Times, 19 Jan 07)

Spy Court's Orders Stir Debate on Hill
…The head of the secret court that approved the program said she has no objection to releasing the documents, but Attorney General Alberto R. Gonzales and Director of National Intelligence John D. Negroponte indicated that the administration is likely to resist….(Washington Post, 19 Jan 07)

President Vieira fires head of Bissau spy agency

The head of the intelligence services of Guinea-Bissau's Interior Ministry, Anteiro João Correia, and his deputy have been dismissed, according to a presidential decree issued here Thursday….(Africa Interactive, 19 Jan 07)

China Criticized for Anti-Satellite Missile Test
The Chinese military used a ground-based missile to hit and destroy one of its aging satellites orbiting more than 500 miles in space last week -- a high-stakes test demonstrating China's ability to target regions of space that are home to U.S. spy satellites and space-based missile defense systems….(Washington Post, 19 Jan 07)

Spy Phones: The Edge in Software Development for Mobile Phones

Breakthrough software developed by Thespyphone Ltd can convert any latest Nokia phones into a Sophisticated Spy Device. Thespyphone Ltd is the only company to develop a spy phone as 100% software based solution which customers can download and convert their phones into a Spy Device within seconds. Currently one can only purchase physical handsets which have been modified to become spyphones. Several competitors are offering physical handsets, but this software is the first in the industry to present an option of converting an existing phone into a Spy Phone without any hardware tweaking…(Power Home Biz, 19 Jan 07)

Symposium: From Russia With Death

As the British investigation ensues into the death of former Russian spy Alexander Litvinenko, fingers of blame point at President Vladimir Putin. Litvinenko himself accused Putin of killing him before he died. The Russian President, meanwhile, is casting blame on Russian London exiles, including billionaire businessman Boris Berezovsky, for Litvinenko’s murder…(Front Page, 19 Jan 07)

Putin’s Aide Says Recent Murders of Dissidents Are Plot Against Russia

A senior aide to Russian President Vladimir Putin has said the murders of journalist Anna Politkovskaya and former spy Alexander Litvinenko are part of an attack by powerful groups against the head of state…Litvinenko’s death in London on November 23 from polonium poisoning followed the murder in Moscow of prominent journalist Anna Politkovskaya. Both were critics of Putin. “Polonium-Litvinenko-Politkovskaya are all linked together,” RIA news agency on Thursday quoted Putin aide Igor Shuvalov as saying….(MosNews, 18 Jan 07)

Russia says murders are a plot against Putin -RIA

A senior aide to Russian President Vladimir Putin has said the murders of journalist Anna Politkovskaya and former spy Alexander Litvinenko are part of an attack

by powerful groups against the head of state….(Reuters, 18 Jan 07)

Book by Poisoned Ex-Spy Reissued

Blowing Up Russia, by Alexander Litvinenko and Yuri Feltshinsky

A British publishing house is reissuing a controversial book by poisoned Russian spy Alexander Litvinenko _ the first of a slew of planned editions that will carry the dead man's anti-Kremlin allegations around the world...Co-written with Yuri Feltshinsky, the book was originally published in the United States in 2002 with financial support from self-exiled Russian tycoon Boris Berezovsky and distributed in small quantities….(AP, 18 Jan 07)

Slick Spy Gear

It sounded a little too James Bondy that pocket change could be tracking your every move. The Defense Department quickly retracted a report that Canadian coins..…(Time Magazine, 18 Jan 07)

U.S. Retracts Canada Spy Coins Claim

…The Defense Security Service said it never could substantiate its own published claims about the mysterious coins…(AP, 18 Jan 07)

Chinese anti-satellite test sparks concern

The United States, Australia and Canada have voiced concerns to China over the first known satellite-killing test in space in more than 20 years… According to David Wright of the Cambridge, Mass.-based Union of Concerned Scientists, the satellite pulverized by China could have broken into nearly 40,000 fragments from 1 to 10 centimeters (a half-inch to 4 inches) in size, roughly half of which would stay in orbit for more than a decade….(MNSBC, 18 Jan 07)

Court Will Oversee Wiretap Program

The Bush administration said yesterday that it has agreed to disband a controversial warrantless surveillance program run by the National Security Agency, replacing it with a new effort that will be overseen by the secret court that governs clandestine spying in the United States….Under the new plan, Gonzales said, the secret court that administers the Foreign Intelligence Surveillance Act, or FISA, will oversee eavesdropping on telephone calls and e-mails to and from the United States when "there is probable cause to believe" that one of the parties is a member of al-Qaeda or an associated terrorist group…(Washington Post, 18 Jan 07)

Political Opinions Complicate Screening for Libby Jurors

…Judge Reggie M. Walton has voiced hope that opening arguments can be given on Monday. But by the end of Wednesday, only 24 jurors had qualified for what is supposed to be a panel of 36 that will then be whittled down to 12 jurors and 4 alternates…..(New York Times, 18 Jan 07)

In Libby Trial, Big Names Make Jury Picks a Tall Order
To see how small a town Washington really is, drop in on jury selection at the trial of I. Lewis "Scooter" Libby, where so far nearly every juror candidate seems to have a connection to the players or events surrounding the leak of an undercover CIA officer's identity….(Washington Post, 18 Jan 07)

Afghanistan, Pakistan, NATO to set up joint intelligence center

In a bid to share intelligence information and coordinate operations against insurgents, the armed forces of Afghanistan, Pakistan and NATO-led International Security Assistance Force (ISAF) have agreed to set up a joint intelligence operation center…(Pak Tribune, 18 Jan 07)

Wyden hails intelligence bill's advance

After two years of the Senate failing to pass an Intelligence Authorization bill, the Senate Select Committee on Intelligence on Wednesday approved the Intelligence Authorization Act for Fiscal Year 2007. Sen. Ron Wyden (D-OR), a senior member of the Committee, lauded the agreed-upon legislation as "vital to fortifying the U.S.'s intelligence capabilities."….(KTVZ, 18 Jan 07)

U.S. ceases warrantless spy operation

The Bush administration, reversing itself on one of its most controversial counterintelligence measures, said Wednesday that it would no longer secretly eavesdrop on the international calls of terrorism suspects in this country without first getting a court order. The so-called Terrorist Surveillance Program was launched weeks after the Sept. 11 attacks and remained secret until it was exposed in news reports in late 2005, provoking a public outcry….(LA Times, 18 Jan 07)

Court to Oversee U.S. Wiretapping in Terror Cases

The Bush administration, in a surprise reversal, said on Wednesday that it had agreed to give a secret court jurisdiction over the National Security Agency’s wiretapping program and would end its practice of eavesdropping without warrants on Americans suspected of ties to terrorists…..(New York Times, 18 Jan 07)

FISA court will monitor domestic wiretapping

….(Washington Times, 18 Jan 07)

U.S. Criticizes China Over Missile Test
The United States criticized China on Thursday for conducting an anti-satellite weapons test in which an old Chinese weather satellite was destroyed by a ballistic missile….(AP, 18 Jan 07)

Witnesses give testimony in war-booty case

Nobody thought much of it when Gunnery Sgt. Gary Maziarz loaded two footlockers full of Marine Corps war booty into the back of his truck in June… Yesterday, a Marine Corps legal officer listened to prosecution witnesses testify against Maziarz in connection with the missing items during an Article 32 hearing, similar to a grand jury inquest in civilian court. Maziarz also is accused of stealing classified documents and computers, and having illegal narcotics at a Carlsbad apartment he rented……(Union Tribune, 18 Jan 07)

Accused of taking weapons, secrets

…The developments began in October when a Camp Pendleton colonel said a large amount of U.S. government trophy weapons obtained during the Iraq war had gone missing. An internal investigation eventually focused on Maziarz, who had done intelligence work in Fallujah, Iraq, participated in a National Security Agency program and had access to federal documents categorized as “top secret” or even more sensitive material….(Union Tribune, 17 Jan 07)

Bakersfield man faces espionage charge

Federal prosecutors have added espionage to the charges against Amen Ahmed Ali, the Bakersfield man who authorities say tried to ship stolen U.S. military equipment and defense secrets to Yemen….Besides espionage, Ali also faces a new charge of conspiracy to act as an unregistered agent of a foreign government. His co-defendants, Ibrahim A. Omer of Fort Worth, Texas, and Mohamed Al-Rahimi, face the same conspiracy charge….(Fresno Bee, 17 Jan 07)

Prominent Polish journalist admits to cooperating with communist-era spy agency

A journalist admitted Wednesday to cooperating with Poland's Communist-era intelligence services while working as a correspondent in Britain in the mid-1980s. The statement by Boguslaw Woloszanski came amid revelations by priests, journalists and other professionals who cooperated with the despised secret police…(AP, 17 Jan 07)

Detectives commended for tracking 'spy' conman

Four detectives have been commended in a ceremony at the American Embassy for tracking down 'spy who conned me' Robert Hendy-Freegard. The fraudster claimed he worked for the security forces as he conned eight women and their families - including two from South Yorkshire - of over £1 million….(Sheffield Today, 18 Jan 07)

Russia seeks further probe on Yukos founder's death in London

Russia will ask Britain to conduct further investigation into the death of Yuri Golubev, one of the founders of the former Russian oil empire Yukos, in London, the Itar-Tass news agency reported, quoting Yuri Chaika, Russia's prosecutor-general. Golubev, 65, a close friend of the jailed Russian billionaire Mikhail Khodorkovsky, was found dead in his London apartment last week…(AFX, 17 Jan 07)

Suspected Belarusian spy extradited to Poland

Sergei Monich, a Belarusian national suspected of espionage against Poland, has been extradited to the country by the Lithuanian authorities, the Regnum news agency reported with reference to the Lithuanian prosecutor general's office. Mr. Monich was arrested in the Lithuanian capital city of Vilnius on November 25, 2006 on suspicion of spying against Poland….(Naviny, 17 Jan 07)

Russia Makes U.K. Demands In Spy Death

Russia's top prosecutor told Scotland Yard it cannot return to Moscow to investigate an ex-spy's poisoning death until Russia can question people in London. Prosecutor-General Yuri Chaika said in Moscow agents with the FSB, the national intelligence agency, wanted access to Russians living in exile in London, many of them critics of President Vladimir Putin…..(UPI, 17 Jan 07)

Detectives face stand-off over Litvinenko murder

Russia's top prosecutor has told Scotland Yard that it must let the Kremlin's investigators question critics of President Putin living in Britain before British detectives can return to Moscow to finish investigating the murder of Alexander Litvinenko.Yuri Chaika delivered his ultimatum as he revealed that detectives have asked to visit Moscow again to question a number of suspects about the murder of the former spy….(Times, 17 Jan 07)

Berezovsky Seeks Scotland Yard Protection Against Polonium Investigators

Once the Kremlin insider and today’s resident of Britain, Boris Berezovsky fears to be poisoned when interrogated by Russia’s investigators, said the tycoon’s lawyer Alex Goldfarb. Berezovsky will speak to investigators provided the Britons guarantee the absence of polonium, The Times Online reported with reference to Goldfarb….(Kommersant, 17 Jan 07)

Espionage targets technology

One day in June, FBI agents swooped into two affluent Silicon Valley homes and arrested two engineers. Lan Lee and Yuefei Ge stand accused of stealing proprietary chip designs and software from their employer, NetLogic Microsystems of Mountain View, and Taiwan Semiconductor Manufacturing Co. in San Jose. Now investigators are asking the Department of Justice to charge Lee, an American citizen, and Ge, a Chinese national, with a more serious crime: economic espionage to benefit China. The case highlights China's role as the main adversary in a complex game of 21st-century espionage where many agents aren't trained spies in trench coats but businessmen, students and researchers….(Roanoke Times, 17 Jan 07)

Report: HP spy defendants offered plea deal by state

Defendants in the Hewlett-Packard Co. spying scandal have been offered a plea bargain by the state to one misdemeanor charge, according to a lawyer involved in the case. …(Biz Journal, 17 Jan 07)

Potential Jurors Queried on Views of Bush Administration

The perjury trial of I. Lewis Libby Jr. began Tuesday with his lawyers trying to eliminate as jurors anyone who might have strongly negative feelings about the Bush administration in general and Vice President Dick Cheney in particular….(New York Times, 17 Jan 07)

CIA leak, war-intelligence cases proceed

A former top White House official goes on trial today in connection with the CIA leak case. Lewis ”Scooter” Libby, who used to be Vice President Cheney's chief of staff, is charged with perjury and obstruction of justice…In a separate case, federal judge said a fired CIA agent can continue with a lawsuit challenging his dismissal from the agency….(AP, 17 Jan 07)

Defense official says Pentagon hid unspent funds in accounts

…Thomas Gimble, the Pentagon's acting inspector general, said Pentagon offices between 2002 and 2005 used the General Services Administration (GSA) and the Interior Department "to 'park' or 'bank' funds that were expiring."… The 10-year, $100 million CIFA lease was "one of the potentially most serious problems" his investigators found with contracts made through an Interior Department office….(USA Today, 17 Jan 07)

Two U.S. Attorneys in Calif. Resign

…The two are among 11 top federal prosecutors who have resigned or announced their resignations since an obscure provision in the USA Patriot Act reauthorization last year enabled the U.S. attorney general to appoint replacements without Senate confirmation….(AP, 17 Jan 07)

Attorney general: NSA spy program to be reformed

…Another open question is whether Gonzales' letter, which talks about only the "Terrorist Surveillance Program" that Bush has publicly discussed, is meant to sweep in other eavesdropping or Internet monitoring programs that are even more highly classified….(CNET, 17 Jan 07)

National Archives Digitizes Documents

Anyone interested in finding out who the FBI was investigating before it became the FBI or seeing the works of noted Civil War photographer Mathew Brady will soon be able to do so digitally…(AP, 17 Jan 07)

Diaz charged with mishandling classified information

A senior Navy lawyer charged with mishandling classified information while assigned to detainee operations at Guantanamo Bay Naval Station, Cuba, was arraigned Wednesday morning at Norfolk Naval Station, Navy Region Mid-Atlantic said….(Navy Times, 17 Jan 07)

Budget falling short at NSA

…As a result, they say, the NSA has slowed hiring, pared back upgrades in information technology, delayed equipment purchases and shut offices. The agency's director, Lt. Gen. Keith B. Alexander, is seeking an increase of nearly $1 billion in supplemental spending for 2007 and a similar boost next year as the White House finalizes its 2008 budget…The money crunch comes despite a doubling of the NSA's budget since the terrorist attacks of Sept. 11, 2001, to approximately $8 billion per year.…(Baltimore Sun, 17 Jan 07)

Vast Data Collection Plan Faces Big Delay

…The Cross-Border Electronic Funds Transfer Program was part of the 2004 Intelligence Reform Act, and Congress directed the Treasury secretary to determine if the program would be effective in tracking terrorist financing. In a report to Congress to be released today, the Treasury Department concluded that the program was technologically feasible and has value, but said it needs to determine whether the counterterrorism benefit outweighs banks' costs of compliance and to address privacy concerns…..(Washington Post, 17 Jan 07)

Protesters Found in Database
A Defense Department database devoted to gathering information on potential threats to military facilities and personnel, known as Talon, had 13,000 entries as of a year ago -- including 2,821 reports involving American citizens…The number of deleted reports far exceeds the estimate provided to The Washington Post just over a year ago by senior officials of Counterintelligence Field Activity (CIFA), the Defense Department agency that manages the Talon program. At that time, then-CIFA Director David A. Burtt II said the review had disclosed that only 1 percent of the then 12,500 Talon reports appeared to be problematic…(Washington Post, 17 Jan 07)

Jurors Questioned About War, Memory as Libby Trial Opens

The trial of Vice President Cheney's former chief of staff opened yesterday with defense lawyers carefully scrutinizing potential jurors for strong opinions about the Bush administration, the war in Iraq and the fallibility of human memory….(Washington Post, 17 Jan 07)

38 Questions Used To Screen Potential Jurors in Libby Case

In the opening moments yesterday of the trial of I. Lewis "Scooter" Libby on charges that he lied during a federal investigation into a CIA leak, U.S. District Judge Reggie B. Walton read aloud 38 questions that lawyers for both sides had agreed on to help screen potential jurors….(Washington Post, 17 Jan 07)

Credit Suisse Manager's Romanian Arrest Is Extended

A Romanian court ordered a Credit Suisse Group manager and three other men to remain in jail another 30 days while prosecutors investigate their role in state assets sales…(Bloomberg, 17 Jan 07)

Two B'deshi 'spies' held with military documents

Two Bangladeshis were today arrested, allegedly with confidential defence documents in their possession, at Basirhat in North 24 Parganas district, police said….(Sahara Samay, 17 Jan 07)

As Trial Begins, Cheney’s Ex-Aide Is Still a Puzzle

Paradox seems to define I. Lewis Libby Jr., who remains a bit mysterious even to close colleagues….(New York Times, 17 Jan 07)

Robert Hopkins; CIA Officer Took Up Fight Against AIDS

Robert Hopkins, 85, a career CIA officer who became an advocate in the fight against AIDS, died Dec. 29…(Washington Post, 17 Jan 07)

U.S. embassies in war on terror

The growing role of the military in the global profile of the United States is a source of policy tension and possible turf conflicts inside the U.S. government, and is jeopardizing the country`s relationships with some of its allies, according to a report prepared by Senate GOP staff…The reports cites one ambassador as lamenting his declining effectiveness in representing the United States to foreign officials. 'As more resources are directed to special operations forces and intelligence,' he told the staff investigators 'foreign officials are `following the money` in terms of determining which relationships to emphasize' with the United States….(UPI, 16 Jan 07)

No bail for Bakersfield man accused of espionage

Bail has been denied for a Bakersfield man accused of being a spy for the country of Yemen. Until Tuesday afternoon, bail for Amen Ahmed Ali had been set at $750,000. Based on that figure, the Kern County Yemeni community collected $1.5 million in property to use as bond to get the 56-year-old out of federal jail. He was arrested four months ago on charges of transmitting secret U.S. defense information to his Middle Eastern homeland…..(KGET, 16 Jan 07)

Spy suspect denies charges

A former student activist accused of spying for North Korea denied the prosecution's charge of involvement in pro-Pyongyang activities during a heated court hearing yesterday. Lee Jin-gang, a 44-year-old office worker, told the court that he neither wrote letters of allegiance to North Korean leader Kim Jong-il nor masterminded anti-American activities among South Korean civic groups. ….(Korea Herald, 16 Jan 07)

Yemen denies having spy in US, asks for evidence

…Yemeni official source denied in a statement to NewsYemen that Yemen was involved in a spy act against United States, but said that contacts are going on with Yemeni embassy in Washington and consulate in News York to know the issue details. US Prosecutor in California said Ameen Ali al-Rohani, US businessman of Yemeni origin, was charged previously with buying and transporting military secrets and documents to Yemen, but that the new charges state he was doing so on behalf of the Yemeni government….(News Yemen, 16 Jan 07)

NIA fabricated spy case, panel finds

…The Truth and Reconciliation Commission said the execution of North Korean spy suspect Lee Soo-geun was based on false testimony and violated the principle of evidence-based judgment. The testimony was forcefully secured after torture by then Korea Central Intelligence Agency agents on him….(Korea Herald, 16 Jan 07)

British detectives may return to Moscow in investigation of poisoning of former KGB agent

British investigators want to return to Moscow as part of their investigation into the death of Alexander Litvinenko, Yuri Chaika, prosecutor- general of Russia…(Reuters/AP, 16 Jan 07)

Reports: Russia Seeks Talk With Tycoon

Russia's top prosecutor said his office wants to question a shadowy fugitive billionaire in the investigation of the poisoning death of a former KGB agent, news agencies reported Tuesday…It was not clear whether Chaika was suggesting that it regarded billionaire Boris Berezovsky as a suspect, but pro-government Russian lawmakers have speculated that Berezovsky was involved in the killing as an attempt to discredit the Kremlin. Berezovsky, a one-time Kremlin insider, is now a ferocious critic of Putin.…(AP, 16 Jan 07)

Spy police 'seek new Russia trip'

British detectives investigating the poisoning of ex-spy Alexander Litvinenko have asked to return to Moscow, according to reports. Russia's top prosecutor was quoted as saying Scotland Yard wants to carry out further inquiries in the city. Mr Litvinenko died on November 23 in a London hospital. His body contained radioactive polonium-210. Last month, nine UK police officers visited Russia to carry out interviews….(BBC, 16 Jan 07)

MI6 differed with gov't on Saudis
Overseas spy agency MI6 has challenged a statement by Tony Blair's government that a corruption inquiry into a huge defence contract with Saudi Arabia threatened national security, The Guardian said on Tuesday. London dropped the investigation into deals involving Saudi officials and people working for BAE Systems last month….(Reuters, 16 Jan 07)

Chinese agents use coins with hidden radios to spy on UK military contractors

MI5 has discovered that British defense contractors traveling to Canada to discuss "sensitive contracts" have been bugged by Chinese secret agents. The bugs take the form of minute receiver-transmitters hidden in hollowed-out coins, which are slipped to the contractors at airport money-changing kiosks at Canadian airports…..(Canadian Press, 16 Jan 07)

Halt the Pentagon's intelligence takeover

The expected confirmation of retired Navy Adm. Mike McConnell as director of national intelligence will complete the Pentagon's takeover of the intelligence community and end any pretense of civilian influence, let alone control, of that community…..(Baltimore Sun, 16 Jan 07)

Intelligence agency's $100M leasing deal examined

A Pentagon domestic intelligence agency overpaid and might have broken the law in awarding a $100 million contract to lease office space, federal investigators say…The contracting questions come as CIFA faces criticism over its surveillance tactics. Created in 2002, the agency oversees investigations and efforts to block terrorism or espionage against military bases or personnel in the USA….(USA Today 16 Jan 07)

Diaz’s attorney can’t make hearing

A senior Navy lawyer charged with mishandling classified information while assigned to detainee operations at Guantanamo Bay Naval Station, Cuba, will be arraigned Wednesday at Norfolk Naval Station…But the civilian attorney for Lt. Cmdr. Matthew M. Diaz, Victor Kelley of Birmingham, Ala., said that he only found out Tuesday that the hearing was scheduled and won’t be able to get to Norfolk in time…(Navy Times, 16 Jan 07)

The Legal Tangles Of Data Collection

…U.S. law requires that law enforcement officials obtain a warrant to tap someone's phone or intercept e-mail. But President Bush, drawing on decades-old precedent, asserts that he has "inherent authority" to authorize agents to intercept electronic communications without a warrant in the interest of national security….(Washington Post, 16 Jan 07)

Politics out front as Libby jury selection begins

Potential jurors in the perjury trial of former White House aide I. Lewis “Scooter” Libby likely will be asked their opinions of the Bush administration, political scandals and the Iraq war Tuesday, foreshadowing the political tenor of a lengthy trial. Libby is accused of lying to investigators about his conversations with reporters regarding outed CIA officer Valerie Plame….(AP, 16 Jan 07)

Important Events in the CIA Leak Case

I. Lewis ''Scooter'' Libby, former chief of staff to Vice President Dick Cheney, is being tried on five counts related to the leak of CIA operative Valerie Plame's name in 2003. Some important events in the case…(AP, 16 Jan 07)

Potential Witnesses in CIA Leak Case

…These names were drawn from court documents and gleaned from hearings on what evidence the two sides expect to present during the trial, which is scheduled to begin Tuesday….(AP, 16 Jan 07)

Interrogation Research Is Lacking, Report Says
There is almost no scientific evidence to back up the U.S. intelligence community's use of controversial interrogation techniques in the fight against terrorism, and experts believe some painful and coercive approaches could hinder the ability to get good information, according to a new report from an intelligence advisory group…(Washington Post, 16 Jan 07)

Harvey E. Wilkinson FBI Agent

Harvey E. Wilkinson, 84, a former FBI agent, died of respiratory failure Jan. 11…(Washington Post, 16 Jan 07)

William Sturner IRS Attorney

William Sturner, 95, an attorney with the Internal Revenue Service who later volunteered with the District's juvenile justice system, died of congestive heart failure Jan. 11…He worked for the FBI and the IRS before joining the Army during World War II…(Washington Post, 16 Jan 07)

Foucs shifts to Germany in poison spy case

In the poison spy case focus has moved to Germany where four people have been confirmed contaminated with polonium-210, the substance used to kill the former KGB agent Alexander Litvinenko. Investigators are tracking the movements of Dmitry Kovtun….(TV3, 16 Jan 07)

Chaika to Send Investigators to London

Prosecutor General Yury Chaika said Sunday that a team of investigators would soon be sent to Britain to investigate the poisoning death of former FSB officer Alexander Litvinenko. Chaika said investigators had submitted a lengthy request for assistance in the case to British authorities, totaling more than 100 pages, and was expecting full cooperation, RIA-Novosti quoted him as saying in an interview with Rossia television. "Our investigators are preparing to travel to Britain in the nearest future to carry out their work,"….(Moscow Times, 15 Jan 07)

Czech civilian intelligence to open communist agents´ files

The Czech civilian intelligence service (the Office for Foreign Relations and Information, UZSI) will facilitate access to the documents concerning former communist espionage activity since so far some information was not open to the public at all….(Prague Monitor, 15 Jan 07)

Italian Criticism of U.S. Reveals Shift

…The Cabinet must also decide whether to seek the extradition of 26 Americans accused in the alleged CIA kidnapping of an Egyptian cleric in Milan in 2003. A judge last week began hearing arguments on whether to indict the Americans and five Italian intelligence officials on criminal charges….(AP, 15 Jan 07)

Egypt to launch first spy satellite

In an effort to gain a foothold in space and gather intelligence on Israel and other Middle Eastern countries, Egypt plans to launch its first spy satellite on Tuesday from Kazakhstan…..(Jerusalem Post, 15 Jan 07)

CIA revises Web site facts

A flood of protest letters has prompted the CIA to revise information on its Web site about South Korea. The CIA's World Factbook incorrectly stated that South Korea has been a nation for a millennium despite the fact that the country's history dates back more than 4,000 years, The Korea Times reports….(UPI, 15 Jan 07)

Turkish Citizen Mustafa Oral Pleads Guilty In Privatizations File

Turkish citizen Mustafa Oral, 38, charged with accessory to espionage and establishing a criminal group, pleaded guilty before the prosecutors in the privatizations file….(Media Fax, 15 Jan 07)

Coca-Cola Trade Secrets Trial to Open

Prosecutors say a former Coca-Cola secretary took confidential documents from the beverage giant and samples of products that hadn't been launched with the aim of selling them to rival Pepsi. Her lawyer says she was duped by two ex-cons and didn't commit a crime…..(AP, 15 Jan 07)

At Libby Trial, Power Players Face Uncomfortable Spotlight

…I. Lewis "Scooter" Libby's case will put on display the secret strategizing of an administration that cherry-picked information to justify war in Iraq and reporters who traded freely in gossip and protected their own interests as they worked on one of the big Washington stories of 2003…..(Washington Post, 15 Jan 07)

Freedom of Information, the Wiki Way

…Wikileaks.org is a Web-based way for people with damning, potentially helpful or just plain embarrassing government documents to make them public without leaving fingerprints. Modeled on the participatory, online encyclopedia Wikipedia, the site is expected to go live within the next two months….(Washington Post, 15 Jan 07)

Cheney Defends Efforts to Obtain Financial Records

Vice President Dick Cheney yesterday defended efforts by the Pentagon and the Central Intelligence Agency to obtain financial records of Americans suspected of terrorism or espionage, calling the practice a “perfectly legitimate activity” used partly to protect troops stationed on military bases in the United States…..(New York Times, 15 Jan 07)

Anti-terrorism program mines IRS' records

Federal intelligence and law enforcement agencies increasingly rely on the Internal Revenue Service and other government repositories of personal financial information as an important source for leads in terrorism investigations. The masses of detailed data give investigators broad power to sift through the finances of people, charities and businesses suspected of illegal activities….(LA Times, 15 Jan 07)

U.S. changes a spy story

It seems there's no danger of your spare change spying on you after all. A U.S. government defense agency has suddenly retracted its claim that Canadian coins containing tiny transmitters were planted on three American contractors who visited Canada….(Canadian Press, 15 Jan 07)

Analysis: Clapper's record at DIA

The man expected to be tapped as the next Pentagon intelligence chief instituted a controversial and ultimately failed reorganization at the Defense Intelligence Agency when he led it in the 1990's. Retired U.S. Air Force Gen. James Clapper has not been formally named as the nominee to the undersecretary of defense for intelligence post…(UPI, 15 Jan 07)

Judge Rules Agent Can Sue CIA

A fired CIA employee, who collected prewar intelligence that Iraq was not developing weapons of mass destruction, can continue with a lawsuit challenging his dismissal, a federal judge has ruled….(AP, 15 Jan 07)

Cheney defends Pentagon

The Pentagon is not violating privacy rights by requesting information from financial institutions, telephone companies or credit bureaus in suspected espionage and terrorism cases, Vice President Dick Cheney said Sunday ….(LA Times, 15 Jan 07)

Military Expands Intelligence Role in U.S.

The Pentagon has been using a little-known power to obtain banking and credit records of hundreds of Americans and others suspected of terrorism or espionage inside the United States, part of an aggressive expansion by the military into domestic intelligence gathering. The C.I.A. has also been issuing what are known as national security letters to gain access to financial records from American companies…(New York Times, 14 Jan 07)

Trial Is Set to Begin for Former Cheney Adviser

I. Lewis Libby Jr., the former chief of staff to Vice President Dick Cheney, will go on trial on Tuesday, nearly three years after a C.I.A. operative’s name appeared in a newspaper column, setting off a major investigation of who leaked the name and why….(New York Times, 14 Jan 07)

Former FBI agent Lancaster helped crack spy operation

Former FBI agent James E. Lancaster Jr., who helped crack an international spy operation during the Cold War, died early Friday… The South Carolina native won acclaim for his role in a joint FBI-naval intelligence investigation that led from the Lowcountry to behind the Iron Curtain. The operation resulted in the capture of an Eastern German spy in 1983 and precipitated what was the called the largest East-West spy swap since World War II…..(Post & Courier, 14 Jan 07)

Deletions in Army Manual Raise Wiretapping Concerns

Deep into an updated Army manual, the deletion of 10 words has left some national security experts wondering whether government lawyers are again asserting the executive branch’s right to wiretap Americans without a court warrant. The manual, described by the Army as a “major revision” to intelligence-gathering guidelines, addresses policies and procedures for wiretapping Americans, among other issues…..(New York Times, 14 Jan 07)

Pentagon conducting probes in U.S.

…Pentagon spokesman Bryan Whitman said the Defense Department was not spying on random American citizens and was primarily requesting the information in counterintelligence investigations, such as when department officials or contractors were accused of spying…..(LA Times, 14 Jan 07)

Protection for spy murder witnesses

Armed guards will protect witnesses questioned over the murder of Alexander Litvinenko if their safety is deemed to be at risk from Russian investigators. Russian police have requested permission to interview more than 100 witnesses in Britain in connection with the death of Mr Litvinenko, the former Russian spy poisoned with the radioactive element polonium 210. However, leading exiles on the list, including the billionaire Boris Berezovsky, who is described by the Kremlin as "Public Enemy Number One", fear they will be kidnapped or even assassinated by Russian "hit squads" using the investigation as cover….(Sunday Telegraph, 14 Jan 07)

Russia to Send Police to Probe Spy Death

…Russia expected full cooperation from British authorities as it investigated the death of Alexander Litvinenko, the RIA-Novosti news agency quoted Prosecutor-General Yuri Chaika as saying in an interview with Rossiya state TV channel….(AP, 14 Jan 07)

Bakersfield man accused of being Yemeni secret agent

A Bakersfield man acted as a Yemeni spy when he shipped what he believed were secret U.S. military secrets and equipment to Yemen, an indictment filed by the United States Attorney's Office states. Amen Ahmed Ali, Bakersfield businessman, purchased what he believed were secret documents and military equipment and shipped them to Yemen from 2005 to 2006…(Sign on San Diego, 14 Jan 07)