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Was Alex Brown a CIA Front When It Was “Innocuously” Shorting 9/11?

This is going to sound very tinfoily. But here goes.

Prominent Baltimore banker Ed Hale has come forward to reveal he was a CIA NOC while Chair of the Bank of Baltimore from sometime around 1991 until 2001.

In a life that reads like a spy thriller, Hale says he was recruited into the CIA by former Alex Brown chairman Buzzy Krongard, who was with the agency.

“He came to my officer one day and said ‘Let’s go for a walk,’” Hale said.

Blue collar beginnings in Eastern Baltimore County to the world of espionage, Hale details this secret life in the CIA in a new biography called “Hale Storm.”

“I was called a NOC,” Hale said, “N.O.C.”

That stands for “non-official cover.”

[snip]

During his time with the CIA, from 1991 to 2001, Hale never told anyone.

That’s all very nice. But it suggests that Buzzy Krongard was at the CIA, recruiting other banksters, years before he was known to be (he is known to have started in 1998).

There are other versions of this, with slightly different dates and a different relationship with the CIA for Buzzy, which may be key. Still, they all show Buzzy recruiting a top banker to join the CIA in the early 1990s.

Which would mean that when Alex Brown was shorting United and American stocks in the days before 9/11, it didn’t just have a former employee at the CIA. It had served as a cover for that former employer while he was working for the CIA.

A single U.S.-based institutional investor with no conceivable ties to al Qaeda purchased 95 percent of the UAL puts on September 6 (2001) as part of a strategy that also included buying 115,000 shares of American on September 10. Similarly, much of the seemingly suspicious trading on September 10 was traced to a specific U.S.-based options trading newsletter faxed to its subscribers, which recommended these trades.

The 9/11 Report goes on to report the SEC found these trades to be “innocuous.”

It doesn’t sound all that innocuous.

 

BREAKING! EXCLUSIVE! NYT’s Ambiguous Reporting Leads to Logical Conclusions

I guess John Brennan has figured out that the effort to roll out the Steely Decider campaign has backfired.

How else to explain the almost unheard of tactic from the NYT of accusing those who drew very logical conclusions from its own article of engaging in gossip?

For example, the NYT complains that people read these passages:

This was the enemy, served up in the latest chart from the intelligence agencies: 15 Qaeda suspects in Yemen with Western ties. The mug shots and brief biographies resembled a high school yearbook layout. Several were Americans. Two were teenagers, including a girl who looked even younger than her 17 years.

[snip]

“How old are these people?” he asked, according to two officials present. “If they are starting to use children,” he said of Al Qaeda, “we are moving into a whole different phase.”

It was not a theoretical question: Mr. Obama has placed himself at the helm of a top secret “nominations” process to designate terrorists for kill or capture, of which the capture part has become largely theoretical. He had vowed to align the fight against Al Qaeda with American values; the chart, introducing people whose deaths he might soon be asked to order, underscored just what a moral and legal conundrum this could be.

And concluded that, “President Obama really add[ed] a 17-year-old girl to the counterterrorism “kill list.”

The NYT complains that people read this passage:

David Axelrod, the president’s closest political adviser, began showing up at the “Terror Tuesday” meetings, his unspeaking presence a visible reminder of what everyone understood: a successful attack would overwhelm the president’s other aspirations and achievements.

And concluded that “his political adviser, David Axelrod, really participate[d] in discussions of which terrorist suspects should be targeted in drone strikes.”

In its effort to suggest readers have drawn unfair conclusions from what I assume was NYT’s deliberately vague reporting, it clings to that very ambiguity (ambiguity, I’ll add, which made the article far more dramatic and therefore more widely read).

The article said that Mr. Obama knew he might be asked to add such terrorism suspects to the kill list — but it did not say he had been asked to do it in this case. Nor did it say that he had done so.

Ah, but the article also didn’t say he hadn’t done so, either, did it? So whose fault is it that readers drew precisely the conclusions that the narrative and emphasis of the article created?

The NYT is so intent on impugning those who drew very logical conclusions from its vague reporting that it made this laughably inaccurate claim:

On the left, too, there were thousands of posts with inaccurate claims about what The Times had reported. Many picked up what a blogger for the conspiracy-minded PrisonPlanet.com wrote on the day the article appeared: that The Times had said Mr. Obama had placed several Americans and a 17-year-old girl, all with alleged links to the branch of Al Qaeda in Yemen, on the kill list.

I’m not sure what is most offensive about this. That a newspaper complaining that readers drew inaccurate conclusions from its vague reporting made an inaccurate claim that a libertarian is a lefty? That, in an effort to impugn Alex Jones the NYT decided to label him as a lefty?

Or that neither here nor in the larger article did the NYT breathe one word of that American 16-year old who was killed in a drone strike, Abdulrahman al-Awlaki. Even if this particular 17-year old girl weren’t ever put on the kill list (though she may well have been–the NYT effectively commits a journalistic Glomar by neither confirming nor denying it here), an American teenager was, one whose death goes unmentioned.

I refrained from noting the following when I first wrote about this article, but this odd attempt to ensure the Steely Decider campaign doesn’t backfire makes it pertinent.

First, remember what Scott Shane said when he got called on letting a senior Administration official hide behind anonymity to insinuate those doing independent reporting on drone strikes were al Qaeda sympathizers?

Shane, in written responses to a number of questions that Nieman Watchdog posed to him about the two articles, said he believes this particular quote was not necessarily directed at BIJ, calling it “ambiguous, and I wish I had been able to clarify it.” He added: “Based on all my reporting over the last couple of years, I believe U.S. government officials have in mind not BIJ or other journalists as sympathizers of Al Qaeda but militants and perhaps ISI officers who supply what they consider disinformation on strikes to journalists.”

Apparently, he was helpless in the face of the ambiguity that allowed sources–probably the same one demanding he go back and counter the blowback from this article–to insinuate independent journalism amounted to helping terrorism. But now, he sees fit not to clear up his own ambiguities, but rather to attack those who drew fair conclusions from those ambiguities.

The story must always mean what is most convenient for John Brennan.

Then there’s this. The Administration is currently prosecuting John Kiriakou for leaking information about the torture program John Brennan once championed. The very core of their case–not to mention any pretense that the government didn’t use National Security Letters to get journalists’ sources to identify leads in this case–is a Scott Shane story for which, he said, he had two dozen sources. One of the very first things Kiriakou’s lawyer is going to do, I’d wager, is demand to know who the other 23 sources for the story are so he can prove that some of those people–people like Buzzy Krongard–knew that Deuce Martinez was involved in the torture and interrogation program.

Now, as a threshold matter, the fact that Shane might have been–and may well be–under DOJ surveillance for a leak investigation suggests that every source who spoke to him for the drone story would have heightened awareness of the risk of speaking out of turn. That sucks. It goes to the core of the problem of Obama’s war on leakers, not to mention their claimed authority to use NSLs to get journalist contact information in national security investigations. But because of this Administration’s decision to prosecute a guy who allegedly identified torturers, Scott Shane’s sources–at least those that say things the Administration doesn’t want out there, mind you–may be in a precarious position. Yet people spoke to Shane for this blockbuster article nevertheless.

Furthermore, Shane undoubtedly knows that the Kiriakou prosecution–particularly those 23 sources sitting between John Kiriakou and a fair trial–could get him in a bigger pickle than James Risen is currently in. This makes Shane’s awkward position even worse. DOJ may well get to decide whether to let Kiriakou go free or risk a judge allowing Kiriakou’s lawyer to demand a list of Shane’s sources from 2008.

Now, I’m not blaming Shane on this front. I’m just pointing out what kind of ancillary power the Administration gets from its leak investigations. It may well be that that’s not playing a part here at all. But I do think it worth noting that Shane–and the NYT generally–may be in a position where the same people hiding behind all this ambiguity will have some say over what kind of headaches Shane will face for once using Kiriakou as a source.

Leon Panetta and the Pakistani Doctor: Yet More Double Standards on Classified Information

As the Bill Gertz article I reexamined the other day made clear, Leon Panetta became personally involved in the CIA’s efforts to investigate detainee lawyers who were trying to track down their clients’ torturers.

CIA Director Leon E. Panetta and his chief of staff, Jeremy Bash, a former chief counsel for the House intelligence committee, at first were unaware of both the scope and seriousness of the case.

However, both officials began addressing the matter after inquiries were made from members of Congress. Since then, Mr. Panetta and Mr. Bash are getting regular updates on the dispute, said the officials.

As a result of that investigation, former CIA officer John Kiriakou was charged last week.

Consider the damage Kiriakou is alleged to have done:

  • Some lawyers with Top Secret clearance submitted a sealed filing naming a covert officer involved in the torture of 9/11 defendants. The lawyers pointedly did not photograph this officer in an effort to shield his identity. And his name was never made public.
  • Using information gained from Kiriakou and around 23 other sources (including former CIA Executive Director Buzzy Krongard), Scott Shane wrote an article detailing Deuce Martinez’ role in the interrogation of Khalid Sheikh Mohammed and others. And while Martinez’ association with the torture program was classified, his identity was not. Furthermore, by the time of the article, Martinez was working for Bruce Jessen and James Mitchell’s contracting firm, making it a pretty safe bet that he was involved in interrogation, even interrogations involving torture.
  • Subsequent to this article based on information from Kiriakou and 23 other people, the 9/11 detainees saw pictures of Martinez; assuming Shane’s article is accurate, they had already interacted with Martinez personally.
  • In that article, Shane included details about the “magic box” technology used to locate Abu Zubaydah. Information on that “magic box” technology and similar ones has been publicly available for decades, meaning the only secret here is that CIA uses it (!) and called it something as stupid as “magic box.”

That’s it. That’s the reported outcome of John Kiriakou’s leaks. And for that he faces prison time of up to 20 years.

Meanwhile, tomorrow the above clip will be shown on 60 Minutes, showing Panetta confirming that the Pakistani doctor who conducted fake vaccinations in Abbottabad, Pakistan in order to get a glimpse into Osama bin Laden’s compound was, in fact, working for the CIA.

Panetta also acknowledged that Shikal Afridi, the Pakistani doctor conducting health tests in the village in an effort to collect DNA and verify bin Laden’s presence, was in fact working for the U.S. Afridi was arrested and charged with treason by the government of Pakistan. “I’m very concerned about what the Pakistanis did with this individual…who in fact helped provide intelligence that was very helpful with regards to this operation,” says Panetta. “He was not in any way treasonous towards Pakistan…Pakistan and the United States have a common cause here against terrorism…and for them to take this kind of action against somebody who was helping to go after terrorism, I just think is a real mistake on their part,” he tells Pelley.

Not only does this presumably put more pressure on Pakistan to convict Afridi of treason (he remains in custody), but it exacerbates the problem of having used a vaccination campaign as cover in the first place, confirming on the record that similar campaigns in poor countries might be no more than a CIA front.

I presume someone in the White House gave Panetta permission to go blab this on 60 Minutes; I assume he’s in no more legal jeopardy than Dick Cheney was when he insta-declassified Valerie Plame’s identity.

But shit like this discredits every single claim national security experts make about the need for secrecy. I mean, how are CIA officers ever going to recruit any more assets when the assets know that the CIA director may, at some time in the future that’s politically convenient, go on 60 Minutes and confirm the relationship?

How Did DOJ Find Jon Kiriakou?

As I’ve noted, former CIA officer Jon Kiriakou was charged yesterday with leaking classified material–including one covert officer’s identity; the alleged leaks involve three different journalists. Since the complaint focuses on Kiriakou it’s easy to forget that the investigation didn’t start there: rather–it started with a filing submitted in a detainee defense case (almost certainly the 9/11 detainees) and photos found in some detainees’ cells, and went through at least one journalist (called Journalist A) along the way. So how did Patrick Fitzgerald’s team find Kiriakou? Did Fitzgerald obtain journalists’ contacts again?

In the case of Kiriakou, I don’t think so. At least not directly.

The complaint alleges there were two steps from Jon Kiriakou to the filing and the photographs.

Covert Officer A

  1. On August 19, 2008 Kiriakou gave Journalist A Covert Officer A’s name.
  2. Later the same day, Journalist A gave Covert Officer A’s name to the defense investigator.
  3. On January 19, 2009, the defense team submits a filing including Covert Officer A’s name.

Deuce Martinez

  1. On November 12, 2007, Kiriakou gave Journalist A Deuce Martinez’ personal email address. On May 20, 2008, Kiriakou told Journalist A that Martinez was not trained in torture. On November 17, 2008, Kiriakou told Journalist A some details about how Martinez traveled, presumably to a Black Site.
  2. On April 10, 2008, Journalist A gave a defense team investigator Martinez’ home phone number.
  3. The defense team had pictures taken of Martinez and gave them to detainees as part of a double blind identification effort; the pictures were found in “spring 2009.”

Note, the evidence in the complaint that Kiriakou was Journalist A’s source on Martinez is weaker than for Covert Officer A’s identity or that he was Scott Shane’s source for Martinez’ phone number. The complaint shows that Journalist A provided the phone number to the defense investigator, but does not show compellingly that Journalist A’s source of Martinez’ phone number was Kiriakou. That weak spot in their case is one piece of evidence that Fitzgerald’s team has neither interviewed Journalist A nor obtained his or her phone records to rule out other possible sources.

Now, remember, by the time DOJ started investigating this on March 19, 2009 (when the target was detainee lawyers, not their sources), and by the time Fitzgerald started investigating this on March 8, 2010, Scott Shane (who is described as Journalist B in the complaint) had already published this June 22, 2008 story, describing Deuce Martinez’ role in catching Abu Zubaydah and interrogating Khalid Sheikh Mohammed and others. It was sourced to,

The two dozen current and former American and foreign intelligence officials interviewed for this article offered a tantalizing but incomplete description of the C.I.A. detention program. [my emphasis]

In addition to Buzzy Krongard, Jon Kiriakou is the only on the record source. The story reveals that Kiriakou spoke with Shane in December 2007–the same month he spoke about waterboarding with ABC. But it also suggests Shane spoke with him after that, when he learned Kiriakou had been “cautioned … not to discuss classified matters.”

John C. Kiriakou, a former C.I.A. counterterrorism officer who was the first to question Abu Zubaydah, expressed such conflicted views when he spoke publicly to ABC News and other news organizations late last year. In a December interview with The Times, before being cautioned by the C.I.A. not to discuss classified matters, Read more

Your Daily WaPo Torture Apology Debunking

I will say this for today’s daily installment of the WaPo torture apology. The WaPo’s two spook reporters, Walter Pincus and Joby Warrick, at least note–in paragraph 10–that having Buzzy Krongard speak for everyone at CIA might not be logically valid.

It is impossible to extrapolate from the small sample contacted by Washington Post reporters about the effect the varied inquiries are having on the thousands of agency employees, more than one-third of whom are spread around the world. But among the dozens of officials who were part of the program and either remain active or have retired, feelings run high about how the White House and the Justice Department have handled the issue. 

But they never get around to challenging Buzzy and their other sources themselves. They never point out that a lot of the whining their sources do is either transparently bogus or just plain whining. And they present numerous sources from the CIA itself debunking the cries of low morale from the torture apologists, yet still let the torture apologists dictate Pincus and Warrick’s conclusion that the torture investigation has and will devastate CIA morale.

Take the claimed worries about whether the legal advice from one Administration carries over to another one.

A much-discussed question is whether the legal reassurances of one administration carry over to its successor. "When a previous administration says something was legal, and the next says it doesn’t matter, the result is hesitancy to take on cutting-edge missions," the former senior official warned. 

I can’t count the number of times that Obama Administration officials have stated that no one who followed John Yoo’s transparently bad legal advice will be prosecuted, but here’s how Eric Holder reiterated that point in his announcement of the investigation.

Further, [the men and women in our intelligence community] need to be protected from legal jeopardy when they act in good faith and within the scope of legal guidance. That is why I have made it clear in the past that the Department of Justice will not prosecute anyone who acted in good faith and within the scope of the legal guidance given by the Office of Legal Counsel regarding the interrogation of detainees. I want to reiterate that point today, and to underscore the fact that this preliminary review will not focus on those individuals.

Yet Pincus and Warrick simply print that complaint, without pointing out the entire premise of it is wrong.

Read more

Scahill on the Blackwater Rent-an-Assassin Service

As expected, Jeremy Scahill has a piece up on the revelation that CIA was using Blackwater as a Rent-an-Assassin service. He corrects the silence about the role of Buzzy Krongard in both the NYT and WaPo pieces on this.

In a 2006 interview for my book, Blackwater: The Rise of the World’s Most Powerful Mercenary Army, Krongard said that the company was hired to provide security for the CIA in Afghanistan. "Blackwater got a contract because they were the first people that could get people on the ground," Krongard said. "The only concern we had was getting the best security for our people. If we thought Martians could provide it, I guess we would have gone after them."

The relationship between Krongard and Prince apparently got chummier after the contract was signed. One former Blackwater executive said in 2006, "Krongard came down and visited Blackwater [at company headquarters in North Carolina], and I had to take his kids around and let them shoot on the firing range a number of times." That visit took place after the CIA contract was signed, according to the former executive, and Krongard "may have come down just to see the company that he had just hired."

And he lists a number of other CIA guys who went on to work for Blackwater. (Sort of makes you wonder how many of those people were used as sources for Finder’s propaganda piece yesterday, since a number of them would qualify as "very senior, recently retired CIA officials, clandestine-service officers.")

Scahill’s most important point (one he made with the help of an interview with Jan Schakowsky, who is in charge of this investigation) was that this program–and Cheney’s secrecy about it–meant Blackwater was a more integral part in crafting the Bush era counter-terrorism strategy than Congress.

"What we know now, if this is true, is that Blackwater was part of the highest level, the innermost circle strategizing and exercising strategy within the Bush administration," Schakowsky told The Nation. "Erik Prince operated at the highest and most secret level of the government. Clearly Prince was more trusted than the US Congress because Vice President Cheney made the decision not to brief Congress. This shows that there was absolutely no space whatsoever between the Bush administration and Blackwater." 

Yeah, I can see why that would piss off Congress.

CIA’s Blackwater Circular Firing Squad

While we wait for Jeremy Scahill’s piece on this today (which will surely tell a more complete story than the NYT and WaPo‘s spook reporters did), I want to follow up on the two posts I did yesterday, obviously based on leaks and counter-leaks, to sort out what we know of the plans to use Blackwater as the US assassination squad. There are two parts to the story: first, that CIA invented an assassination program shortly after 9/11. And then, that CIA gave a contract to Blackwater for the program in 2004. Here are the dates we know of.

2001: Presidential finding allowing assassinations of al Qaeda, assassination squads set up

2002: CIA sets up contract for Blackwater to "provide security" for CIA’s Afghan station

2002: Dick Cheney tells CIA not to brief Congress on assassination plans

2002: Cofer Black ousted from CTC

2004: CIA terminates program, then gives contract to Blackwater to do assassination squads

September, 2004: Buzzy Krongard resigns as CIA’s Executive Director (replaced by Dusty Foggo)

February 2005: Cofer Black becomes Vice Chairman of Blackwater

Fall 2007: Krongard joins Blackwater advisory board

September 2007: Nisour Square massacre

June 23, 2009: Panetta learns of active assassination squad program, cancels it

June 24, 2009: Panetta briefs Congress

Now, a couple of points about this. The stories coming out today want to focus on 2004, when Blackwater supposedly got the contract to do this. If so, then what did Cheney order CIA not to tell Congress about in 2002? It may be that they’re using the term "contract" loosely to hide an earlier arrangement, given that they admit to NYT there was never really a contract.

Officials said the C.I.A. did not have a formal contract with Blackwater for this program but instead had individual agreements with top company officials, including the founder, Erik D. Prince, a politically connected former member of the Navy Seals and the heir to a family fortune. 

I guess if you’re doing all this without contracts, it makes it a lot easier for it to take four months before the Director of the CIA learns about it. But isn’t that one of the nightmares we’ve all been waiting for, as we outsource our intelligence? That the privatized spooks will take over and continue programs without telling the political appointees? Hell, that the privatized spooks will continue to work for the last guy who was President and not the current one?

Read more

Did I Say the Daily Beast Story Was BS?

Because it was. They were trying to hide the fact that the company of their former ExecDir, Buzzy Krongard and Blackwater, is the gimmick behind the CIA’s assassination program.

The Central Intelligence Agency in 2004 hired outside contractors from the private security contractor Blackwater USA as part of a secret program to locate and assassinate top operatives of Al Qaeda, according to current and former government officials. 

Executives from Blackwater, which has generated controversy because of its aggressive tactics in Iraq, helped the spy agency with planning, training and surveillance. The C.I.A. spent several million dollars on the program, which did not capture or kill any terrorist suspects.

The fact that the C.I.A. used an outside company for the program was a major reason that Leon E. Panetta, the new C.I.A. director, became alarmed and called an emergency meeting to tell Congress that the agency had withheld details of the program for seven years, the officials said.

Only of course they didn’t mention Buzzy Krongard, not once, in the whole article. Didn’t mention that he left the CIA before he got this contract. (He was probably contracted by Dusty Foggo, but whatever.)

If I had to guess, I’d say the Dems are closing ranks around Panetta. 

I don’t love Panetta–he has humiliated himself thus far. But hey, if those trying to reform the Company join with Panetta and push him, we might make some progress.