From: Steve Uhrig Date: Sun Feb 10, 2002 10:22pm Subject: AID Bird Dog manual needed Hello all, I thought I'd take a chance here. Would anyone have a copy of the operating manual for the AID Model 300 Bird Dog vehicle tracking system? This is one of the original ones from about 20 years ago. Any info would be appreciated and will be compensated. I need actual printed documentation, please, not speculation or reminiscing. The main thing I need is the part number for the red bulbs on the DF control head which indicate left or right. And any details on what appears to be a complicated pulse train coming out of the motion sensing transmitter. Thanks ... Steve ******************************************************************* Steve Uhrig, SWS Security, Maryland (USA) Mfrs of electronic surveillance equip mailto:Steve@s... website http://www.swssec.com tel +1+410-879-4035, fax +1+410-836-1190 "In God we trust, all others we monitor" ******************************************************************* 4774 From: Steve Uhrig Date: Sun Feb 10, 2002 10:45pm Subject: TDRs for sale Hello all, If you are serious about sweeping phone lines and do not have a TDR, you need one. Don't fool yourself. I've got several available, all Riser Bond, most current production, all working perfectly with new or very recent batteries, chargers, manuals, carrinyg cases etc. Info on using them as well as specific product info can be found on Riser Bond's excellent website http://www.riserbond.com. Available are quite a number of each of the following models: 2401B+ (little ping box with digital readout; possibly one of the most common TDRs used in TSCM. Must be used with an external oscilloscope with at least 100 Megacycle frequency response. Nicad powered. 1205C -- has large LCD display built in, auto setting, very simple front panel, variable pulse widths, variable velocity factor, variable impedance. Backlit screen. Battery gauge. Automatically calculates and displays fault on the screen as well as distance to the fault and dB loss through the fault. Very nice unit, one of the Cadillacs of TDRs. Digital storage of traces can be downloaded to a computer or printer later. Very easy to use. Connect the line to test, turn it on, and it does it all automatically. Has automatic noise filters which switch in automatically to give you the cleanest trace. Waterproof Pelican case. 1205CX - fancier model than 1205C, not many major differences. 1205CXA -- now uses nickel metal battery instead of lead acid like in the 1205 and 1205C and 1205CX series, for lighter weight, longer life per charge. Has sub nanosecond pulse for finding intermittents or very quick happenings on digital lines. The absolute Cadillac of TDRs. Current model; see Riser Bond's website for details. 1300 -- Latest design, smaller, more compact, probably not quite as rugged packaging but made for someone who uses the thing extensively and wants an executive quality instrument to carry around. Designed especially for twisted pair, and can read through loading coils and a lot of other garbage. Seems to be the same specs and menu as 1205CXA, just in different packaging. See website. Contact me if you have an interest in picking up a top quality TDR that will last the rest of your career. Now is the best time since I have more in house now than I have had in years. Call me with your needs or to discuss where you are, and I will recommend the best one for your level of experience, your budget and your personal capabilities. A TDR is easy to use, can read rat piss on the lines, and separates the men from the boys. You'll need one eventually. Here's your chance to save a lot of money and probably buy a better unit than you will be able to afford in the future. Practice some with these things, get confident in it, and you will be a major reckoning force in the industry. Few professional sweepers have TDRs as nice as are described on this page. Most also come with leads, all come with manuals and chargers. All come with a padded carrying case OR a Pelican waterproof case (depending on model). I can take credit cards and ship overnight if necessary. Call if interested in breaking through the equipment barrier from novice to journeyman. Are you going to play games all your life on telephone lines where the majority of the threats target, or are you going to equip yourself and learn to use the same silver bullet professionals use but like to keep quiet? Steve ******************************************************************* Steve Uhrig, SWS Security, Maryland (USA) Mfrs of electronic surveillance equip mailto:Steve@s... website http://www.swssec.com tel +1+410-879-4035, fax +1+410-836-1190 "In God we trust, all others we monitor" ******************************************************************* 4775 From: Steve Uhrig Date: Sun Feb 10, 2002 10:56pm Subject: RF TSCM gear available - REI Hello again people, I have several pieces of REI gear available if anyone is interested. First is a CPM-700 with audio leakage probe and ballistic nylon carrying case. Used once. Perfect condition. $2200. Not a bad little receiver, especially for the price. See: http://www.research-electronics.com/cgi- bin/main.cgi?action=viewprod&ct=products&num=CPM-700 for specs. Also have a special OSCOR 5000, which has a number of REI factory installed enhancements to improve performance. These enhancements are not included in production units and you cannot request them installed in yours. Unit is fully configured with latest firmware, maximum memory, recent battery, all manuals, perfect condition, used several times but handled gently and packed as new. Will include all paperwork, correspondence, etc,, whatever is in the file on this particular unit. This OSCOR is equipped with the Deluxe Package Upgrade as well as the 10.7 I.F. out. And don't overlook the other mods which are not in any other unit as far as I know. Comes with a case of chart paper, too. I have had this OSCOR since it was new, do not use it and would like to pass it along to someone who could make use of it. Remember, this unit has every option except the optional computer software. It has the optional I.F. out, dual color video monitors, max memory, latest firmware, etc. Looks unused. The major value in this piece is its impressive appearance. See: http://www.research-electronics.com/cgi- bin/main.cgi?action=viewprod&ct=products&pct=OSCOR&num=OSC-5000 for specs and pictures. I *strongly* recommend factory training to get the maximum performance out of this unit. If you can't afford or justify a few days in Tennessee for training on this unit, you can't afford it. Repeat -- do NOT consider buying this unit unless you will receive professional training or you consider yourself astute enough not to need it. I went to the factory for training, if that tells you anything. Price is in the $12,000 region. The special enhancements make this a better deal than a new unit, whatever they cost nowadays. Can take credit cards. Contact me if interested. Steve ******************************************************************* Steve Uhrig, SWS Security, Maryland (USA) Mfrs of electronic surveillance equip mailto:Steve@s... website http://www.swssec.com tel +1+410-879-4035, fax +1+410-836-1190 "In God we trust, all others we monitor" ******************************************************************* 4776 From: Matthew Paulsen Date: Sun Feb 10, 2002 11:39pm Subject: RE: Anti-keylogger Cryptome posted an anti-keylogger report. Summary - snakeoil - see below. http://cryptome.org/anti-keylogger.htm 8 February 2002 ---------------------------------------------------------------------------- ---- Cryptome purchased a copy of Anti-Keylogger yesterday (thanks to AG), installed it on a couple of machines and ran the program. It runs on Windows 9X, not W2K or NT. One machine, a laptop running ME, was reported clean: System scanning is started ------------------------------------------------------------ [2/8/2002 5:38:15 PM] Running keystroke monitoring programs are not found on your system. A desktop running Windows 98 got this report: System scanning is started ------------------------------------------------------------ [2/8/2002 5:37:13 PM] The following LOG-files are detected: - c:\windows\cookies\index.dat - c:\windows\network~2\blackice\log0007.enc - c:\windows\history\history.ie5\index.dat - c:\windows\tempor~1\content.ie5\index.dat LOG-files selected for detection: - c:\windows\cookies\index.dat - c:\windows\network~2\blackice\log0007.enc - c:\windows\history\history.ie5\index.dat - c:\windows\tempor~1\content.ie5\index.dat None of these appear to be keylogging files, though they show logs of machine monitoring by BlackIce, a firewall program, and IE.5, Internet Explorer. The laptop had neither BlackIce or IE installed. Nothing in Anti-Keylogger documentation describes how to tell the difference between its suggestion of keylogging detection and simply examining overt system and usage monitoring logs. Nor any justification for the use of the term "anti-keylogging" as anything more than a sly bait and switch marketing gimmick. The program is capable of pointing to easily spotted logging files, and might point to concealed logs if there were any, but more likely it is up to the user to figure out what to do about any concealed keyloggings, including those neatly concealed by "anti-keylogging" programs. Certainly IE's obnoxious log of surfing should be dumped, perhaps IE too, and beyond that Microsoft itself. See Microsft's Hidden Files: http://www.astalavista.com/library/os/win95-98/mshidden.txt Cryptome's evaluation: Anti-Keylogger is rancid snakeoil. The cost of this futile anti-FBI investigation was $59.95. Futile for us, but Anti-Keylogger may now be monitoring our machines and forwarding data to its deeper customers. We're in Anti-Keylogger's database for selling to the FBI, though the FBI is could be running Anti-Keylogger as a honeypot sting. It smells like Elcomsoft, famous supplier to the USG of encryption cracking (and worse) programs. If Anti-Keylogger wants to correct this thumbs-down, refund $59.95, plus $1 million for our needy honeypot, and prove it can out the FBI's Scarfo DIRT. ---------------------------------------------------------------------------- ---- From Anti-Keylogger's parent company Raytown's website: "In God we trust. All others we monitor." NSA motto Do you need to track employees and monitor workstations at all times? Do you need to know what your child is doing on the computer? Do you want to see how others are using your PC while you are away? Do you want to find out if your wife/husband is having an online affair? Our general-purpose monitoring software for Windows 95/98/ME/NT/2000 is your solution. Because it records every keystroke on your computers invisibly and stores the keystrokes in a file that ONLY YOU can see. ONLY YOU will know exactly what was going on. Monitoring software track and report all activity on your PC (including DOS sessions). ________________________ Raytown Corporation was founded in 1999. The main specialization is developing monitoring and anti-monitoring software. We are independent security software developers corporation with more than 10 years of experience. We are proud of our achievements and excellent customer support. Today our products and custom solutions may be found in more then 70 countries all over the world including a large number of Fortune 500 companies, law enforcement, government and military agencies. Our international team consists of people from USA, Israel, Ukraine, Russia and other countries. Our high-tech computer security technologies are utilized by both individuals and organizations worldwide. Our software is a nice example of our ability to combine software development skills with a deep understanding of the security solutions needing to all contemporary organizations all around the world. We provide all our customers with the highest quality service. All activities are handled discreetly, with strict confidentiality. Please let us know what services might be of interest to you or your Company. If you need any further information regarding our activities please do not hesitate to contact us. ---------------------------------------------------------------------------- ---- -----Original Message----- From: MACCFound@a... [mailto:MACCFound@a...] Sent: Thursday, February 07, 2002 11:17 AM To: TSCM-L@yahoogroups.com Subject: Re: [TSCM-L] Anti-keylogger In a message dated 2/7/02 11:02:26 AM Pacific Standard Time, agrudko@i... writes: << I'm more than dubious of any device that claims to be able to detect "UNKNOWN" threats. >> we have unknown threats on this list Yahoo! Groups Sponsor ADVERTISEMENT ======================================================== TSCM-L Technical Security Mailing List "In a multitude of counselors there is strength" To subscribe to the TSCM-L mailing list visit: http://www.yahoogroups.com/community/TSCM-L It is by caffeine alone I set my mind in motion. It is by the juice of Star Bucks that thoughts acquire speed, the hands acquire shaking, the shaking is a warning. It is by caffeine alone I set my mind in motion. =================================================== TSKS Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. [Non-text portions of this message have been removed] 4777 From: Matthew Paulsen Date: Sun Feb 10, 2002 11:45pm Subject: more from cryptome. Perhaps of more interest to the group: 10 February 2002 View Submitted Comments For Member vote ETSI Document Number: ETSI ES 201 671 V2.1.1 (2001-07) http://cryptome.org/espy/ES201-671-Cmem-vote.htm (70K) 10 February 2002 Telekom Austria‘s Position to the final draft ETSI ES 201 671 v2.1.1(2001-07) Telecommunications security; Lawful interception (LI); Handover interface for the lawful interception of telecommunications traffic http://cryptome.org/espy/ES201-671-Tele-AT.doc (52K) 10 February 2002 ETSI TS 101 331 V1.1.1 (2001-08) Technical Specification Telecommunications security; Lawful Interception (LI); Requirements of Law Enforcement Agencies http://cryptome.org/espy/TS101-331-v111-Req-LEAs.pdf (127K) 4778 From: Prokop Communications Date: Sun Feb 10, 2002 7:01pm Subject: Night Vision Equipment Night Vision Equipment Company (NVEC) manufactured a scope-Model NVEC 500 sometime back. Does anyone recall the pricing on this item, i.e. retail, wholesale, GSA, etc? Any comments as to present value? Rick Prokop -W9MLW Prokop Communications TSCM-ITC Certified Video Concealments Seattle, Washington (206) 378-5560 Seattle, WA [Non-text portions of this message have been removed] 4779 From: Hawkspirit Date: Mon Feb 11, 2002 6:13pm Subject: Hearing Voices? Over the past few months I have seen list members forward inquiries from some desperate individuals who claim that because of microwave radiation they hear voices and other auditory phenomena. Most comments from the list members are that these people need psychiatric help and most are skeptical of their claims. It is apparent that the U.S. patent office is not quite as skeptical as our members. Have a look at: United States Patent 4,858,612 Stocklin August 22, 1989 Hearing device Abstract A method and apparatus for simulation of hearing in mammals by introduction of a plurality of microwaves into the region of the auditory cortex is shown and described. A microphone is used to transform sound signals into electrical signals which are in turn analyzed and processed to provide controls for generating a plurality of microwave signals at different frequencies. The multi frequency microwaves are then applied to the brain in the region of the auditory cortex. By this method sounds are perceived by the mammal which are representative of the original sound received by the microphone. Roger Tolces www.bugsweeps.com 4780 From: Steve Uhrig Date: Mon Feb 11, 2002 10:16pm Subject: Re: Night Vision Equipment Once upon a midnight dreary, Prokop Communications pondered, weak and weary: > Night Vision Equipment Company (NVEC) manufactured a scope-Model NVEC 500 > sometime back. Does anyone recall the pricing on this item, i.e. retail, > wholesale, GSA, etc? Any comments as to present value? http://www.nvec-night-vision.com/ Contact them yourself. They have a long standing reputation for integrity, quality and customer service. Remember an eternity has passed in night vision in the last several years. Stuff police departments would fight over 10 or 15 years ago now is surplus and sold by the pound by the same agencies. Sounds like an earlier 2nd gen commercial handheld scope. If so, current value is probably less than the freight it cost to ship the product. There are some white papers on our website Articles section about selecting, operating, maintaining and using night vision, Keep in mind the articles are dated, and we no longer can endorse in good conscience some of the companies mentioned in those articles. Go to our website Articles section, read the several articles on night vision there, and you will know more about night vision than most of the places selling it or in the cases of spy shops, claiming to 'manufacture' it. The Russian garbage killed the U.S. law enforcement night vision market. The U.S. market was close to saturated anyway. Litton and ITT are the two primary U.,S. military suppliers now, and those two companies represent 95% plus of the domestic market share for military acquisitions of night vision equipment. My personal preference is to ITT, but Litton is OK also. I would avoid ALL Russian products, no name U.S. basement assemblies from surplus components, B.E. Meyers/Dark Invader series toys and anything other than Litton or ITT products purchased from an official distributor. 3rd gen is the choice if you are able to specify. Don't overlook 35mm film camera and video camera interfaces which are discussed in the white papers on our website. And, of course, no spy shops for night vision. Regards ... Steve ******************************************************************* Steve Uhrig, SWS Security, Maryland (USA) Mfrs of electronic surveillance equip mailto:Steve@s... website http://www.swssec.com tel +1+410-879-4035, fax +1+410-836-1190 "In God we trust, all others we monitor" ******************************************************************* 4781 From: Matthew Paulsen Date: Mon Feb 11, 2002 10:49pm Subject: RE: Re: Night Vision Equipment Not an endorsement, just a website that carrys ITT and Litton scopes. Easy navigation, specs and simple instructions. http://www.morovision.com/ -----Original Message----- From: Steve Uhrig [mailto:steve@s...] Sent: Monday, February 11, 2002 8:16 PM To: tscm-l@yahoogroups.com Subject: [TSCM-L] Re: Night Vision Equipment Once upon a midnight dreary, Prokop Communications pondered, weak and weary: > Night Vision Equipment Company (NVEC) manufactured a scope-Model NVEC 500 > sometime back. Does anyone recall the pricing on this item, i.e. retail, > wholesale, GSA, etc? Any comments as to present value? http://www.nvec-night-vision.com/ Contact them yourself. They have a long standing reputation for integrity, quality and customer service. Remember an eternity has passed in night vision in the last several years. Stuff police departments would fight over 10 or 15 years ago now is surplus and sold by the pound by the same agencies. Sounds like an earlier 2nd gen commercial handheld scope. If so, current value is probably less than the freight it cost to ship the product. There are some white papers on our website Articles section about selecting, operating, maintaining and using night vision, Keep in mind the articles are dated, and we no longer can endorse in good conscience some of the companies mentioned in those articles. Go to our website Articles section, read the several articles on night vision there, and you will know more about night vision than most of the places selling it or in the cases of spy shops, claiming to 'manufacture' it. The Russian garbage killed the U.S. law enforcement night vision market. The U.S. market was close to saturated anyway. Litton and ITT are the two primary U.,S. military suppliers now, and those two companies represent 95% plus of the domestic market share for military acquisitions of night vision equipment. My personal preference is to ITT, but Litton is OK also. I would avoid ALL Russian products, no name U.S. basement assemblies from surplus components, B.E. Meyers/Dark Invader series toys and anything other than Litton or ITT products purchased from an official distributor. 3rd gen is the choice if you are able to specify. Don't overlook 35mm film camera and video camera interfaces which are discussed in the white papers on our website. And, of course, no spy shops for night vision. Regards ... Steve ******************************************************************* Steve Uhrig, SWS Security, Maryland (USA) Mfrs of electronic surveillance equip mailto:Steve@s... website http://www.swssec.com tel +1+410-879-4035, fax +1+410-836-1190 "In God we trust, all others we monitor" ******************************************************************* Yahoo! Groups Sponsor ADVERTISEMENT ======================================================== TSCM-L Technical Security Mailing List "In a multitude of counselors there is strength" To subscribe to the TSCM-L mailing list visit: http://www.yahoogroups.com/community/TSCM-L It is by caffeine alone I set my mind in motion. It is by the juice of Star Bucks that thoughts acquire speed, the hands acquire shaking, the shaking is a warning. It is by caffeine alone I set my mind in motion. =================================================== TSKS Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. [Non-text portions of this message have been removed] 4782 From: sdonnell Date: Tue Feb 12, 2002 1:00am Subject: Caller ID repeater(?) Hi, Perhaps one of the telecom experts can answer this one: I have a friend that operates a small business, which requires him to spend much of his time out of the office. In order to stay in touch, he currently uses a device which will answer is office phone, and after several unanswered rings, the call is forwarded to his cellphone number via a different line. One serious limitation to this is that none of the forwarded calls contain the Caller ID from whoever has called into his office number. Is there some type device that can also forward the CID of the original call when it is forwarded to the cellphone(or other number)?? I wouldnt normally think it would be posible to regenerate a CID, but I recall some mention here a month or so back of how it was posible for a phreaker to send a "fake" CID down most lines. If that is the case, then I would think there might be some way to regenerate/repeat a legit CID. The local carrier here is Verizon. thanks Steve 4783 From: mwel10 Date: Tue Feb 12, 2002 8:09am Subject: Hidden area on harddisks Dear All, Although a bit off-topic, I found this link on the forensics@s... mailinglist. If someone would like to know more about forensic IT research they can contact me off-list. BXDR A DOS based application that simply lists the Geometry of any attached hard disk drives using standard BIOS calls, Extended BIOS calls and Direct Disk access (ATA) calls. One of the more interesting features of BXDR and Direct Access calls is that it is possible to set the maximum addressable sector to an arbitary value. Future reads of the disk will then report the maximum sector to be the new value. This command can be (and via BXDR is) non- volatile - i.e. the limit will remain until reset with a subsequent command. From a forensic viewpoint this command can defeat most modern imaging systems. To test it I performed the following test. I took an 80GB hard disk drive and using BXDR set the max addressable sector to 999999 (1,000,000 sectors) approx 5GB. (BXDR 128 /s999999) Removed the hard disk drive and placed it into a second machine Attempted to image with SafeBack (using BIOS, XBIOS and Direct Access) and with Encase (DOS and FastBloc). Both SafeBack and Encase reported the drive as a 5GB device. I then ran BXDR to reset the max addressible sector to the maximum native addressable sector (BXDR 128 /r) SafeBack and Encase could subsequently see the full drive. http://www.sandersonforensics.co.uk/html/bxdr.html Yours sincerely, Matthijs van der Wel Project Manager Fox-IT Forensic IT Experts B.V. Oude Delft 47 2611 BC Delft The Netherlands ________________________________________________________ http://www.fox-it.com/engels/index.shtml ________________________________________________________ Phonenumber (general): +31 - 15 - 21 91 111 Phonenumber (direct): +31 - 15 - 21 91 124 Faxnumber: +31 - 15 - 21 91 100 ________________________________________________________ E-Mail Disclaimer This email may contain confidential information. If this message is not addressed to you, you may not retain or use the information in it for any purpose. If you have received it in error, please notify the sender and delete this message. We try to screen out viruses but take no responsibility if this email contains a virus. 4784 From: Date: Tue Feb 12, 2002 0:00pm Subject: Re: Hearing Voices? 30 Psycho-Acoustic Projector, Patent 3,566,347, US Patent Office, 23 February 1971 31 32 31 Method and System for Altering Consciousness, Patent 5,289,438, U.S. Patent Office 22 February 1994 33 Method and System for Altering Consciousness, Patent 5,123,899, dated 23 June 1992 35 Silent Subliminal Presentation, Patent 5,159,703, U.S. Patent Office, 27 October 1992 google +EEG +entrainment google +EEG +ELF google +HAARP google +Schumann +resonance google +PANDORA google +'Synthesised Brainwave' google +'directed energy' Quoting Hawkspirit : > Over the past few months I have seen list members forward inquiries from > some desperate individuals who claim that because of microwave radiation > they hear voices and other auditory phenomena. Most comments from the list > > members are that these people need psychiatric help and most are skeptical > of their claims. It is apparent that the U.S. patent office is not quite as > > skeptical as our members. Have a look at: > > United States Patent 4,858,612 > Stocklin August 22, 1989 > > Hearing device > > Abstract > A method and apparatus for simulation of hearing in mammals by introduction > > of a plurality of microwaves into the region of the auditory cortex is > shown and described. A microphone is used to transform sound signals into > electrical signals which are in turn analyzed and processed to provide > controls for generating a plurality of microwave signals at different > frequencies. The multi frequency microwaves are then applied to the brain > in the region of the auditory cortex. By this method sounds are perceived > by the mammal which are representative of the original sound received by > the microphone. > > Roger Tolces > www.bugsweeps.com > > > > > ======================================================== > TSCM-L Technical Security Mailing List > "In a multitude of counselors there is strength" > > To subscribe to the TSCM-L mailing list visit: > http://www.yahoogroups.com/community/TSCM-L > > It is by caffeine alone I set my mind in motion. > It is by the juice of Star Bucks that thoughts acquire speed, > the hands acquire shaking, the shaking is a warning. > It is by caffeine alone I set my mind in motion. > =================================================== TSKS > > Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/ > > > ------------------------------------------------- This message may contain confidential and/or privileged information belonging to Cadre Engineering, LLC. It is intended solely for the addressee and access to the e-mail by anyone else is unauthorized. If you are not the intended recipient, you are hereby notified that any unauthorized disclosure, copying, distribution and/or any action, which relies on the contents of this message, is strictly prohibited. Any comments or opinions expressed are those of the originator, and not of Cadre Engineering, LLC. If you have received this message in error, please notify the sender by return e-mail and delete it from your system. If you require any assistance, please contact postmaster@c.... 4785 From: James M. Atkinson Date: Tue Feb 12, 2002 10:09pm Subject: Spy watchdog to probe Tampa phone taps http://www.thewest.com.au/20020212/news/latest/tw-news-latest-home-sto44099.html Spy watchdog to probe Tampa phone taps CANBERRA THE nation's intelligence agency watchdog is set to investigate claims that defence electronic eavesdroppers listened in on satellite phone conversations during the Tampa crisis. In a departure from the traditional no comment on intelligence matters policy, the Government today denied any wrongdoing. Defence Minister Robert Hill said the director of the Defence Signals Directorate confirmed it had not targeted communications of the Maritime Union of Australia (MUA) or the International Transportation Federation. "More specifically the director has advised that DSD did not provide any reporting to the Government on communications from the MUA or ITF," he said. It was reported today that DSD monitored satellite phone conversations from the Tampa following its rescue of 438 boat people near Christmas Island last August. It cited a senior Government source who claimed transcripts of MUA and ITF conversations were used to help formulate a political response to the crisis. Senator Hill said he had asked the Inspector General of Intelligence and Security Bill Blick to review his records from this period to provide further public reassurance. But he did not deny DSD had a role in the Tampa crisis. "The capacity to intercept and report on communications exists to protect national interests," he said. "The protection of Australia's borders is obviously a matter of national importance." Australian Council for Civil Liberties president Terry O'Gorman lodged a formal complaint with Mr Blick urging him to examine whether DSD really did spy on Australians during the Tampa crisis. The Democrats and Labor have both proposed inquiries into the allegations. -AAP -- -------------------------------------------------------------------------------------------------- The First, The Largest, The Most Popular, and The Most Complete TSCM, Bug Sweep, Spy Hunting, and Counterintelligence Site on the Internet. -------------------------------------------------------------------------------------------------- James M. AtkinsonPhone: (978) 546-3803 Granite Island GroupFax: (978) 546-9467 127 Eastern Avenue #291http://www.tscm.com/ Gloucester, MA 01931-8008mailto:jmatk@t... -------------------------------------------------------------------------------------------------- People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf. - George Orwell -------------------------------------------------------------------------------------------------- 4786 From: William Knowles Date: Tue Feb 12, 2002 11:15pm Subject: FC: BARTEC, eavesdropping, and "open source" wiretap software ---------- Forwarded message ---------- Date: Tue, 12 Feb 2002 22:49:01 -0500 From: Declan McCullagh To: politech@c... Subject: FC: BARTEC, eavesdropping, and "open source" wiretap software BARTEC is an interesting company. It describes itself as being the best choice for police "telephone surveillance equipment." BARTEC's product line is extensive, featuring "the intelligent choice for all your telephone surveillance investigations - pen register, audio wiretap or PCS/cellular." (http://www.bartec.com/products.html) BARTEC products include: * DLP-14/400 WIRELESS INTELLIGENT TRANSMITTER, described as a "PCS/cellular intercept device designed for use by both law enforcement and wireless companies for telephone surveillance investigations." (http://www.bartec.com/content/wit.html) * D A R E / DIGITAL AUDIO RECORDING ENVIRONMENT, described as a tool for "streamlining and simplifying wiretap operations. This is accomplished by taking advantage of the latest in digital audio recording technology which automatically places both voice and data together on CD-ROM." (http://www.bartec.com/content/whatshotDARE.html) * C O P S / CALEA OPERATIONS, the recommended way for BARTEC customers to perform surveillance under the controversial Communications Assistance for Law Enforcement Act (CALEA), aka Digital Telephony law. To summarize: COPS essentially links the telephone company with police. COPS includes a dedicated PC, an 8-port Cisco router / modem pool, and a 100 base T Hub. The protocol used to share info is called J-025. (http://www.bartec.com/content/whatshotCOPS.html) J-025 is more properly called J-STD-025, and was jointly developed by the Telecommunications Industry Association and the Alliance for Telecommunications Industry Solutions. It came out in December 1997 and soon became the focus of litigation, with privacy groups and some industry groups saying it went beyond what Congress intended. The DC Circuit agreed in part (http://www.epic.org/calea/dc_cir_decision.html). For more background, consider a report by a Telecommunications Industry Association working group dated May 2000 that arose after a meeting at the Excalibur hotel in Las Vegas. The document is here: http://www.tiaonline.org/standards/CALEA_JEM/CJEM503-105.pdf What's interesting is that the report, authored by Mark A. Montz, a product architect at Compaq, talks up the benefits of open source softwware as a way to keep the Feds honest -- in much the same way that some of us have recommended the release of Carnivore's source code. Excerpt: >The connection point may also allow access to data packets not >authorized for surveillance to be collected as well as the ones >covered by a subpoena. Also, while the PC/hard disk system above >substitutes for a tape recorder, there is nothing currently equivalent >to a "pen trace device". Indeed, one of the major concerns with the >industry suggestion of delivering all the information to law >enforcement agencies was that the agencies could not be trusted to >discard data they were not authorized to receive. A novel solution to >this problem may be possible by the success of a new concept: Open >Source... A neutral organization such as UL Labs or some other agency >would be responsible for downloading the software into the computer, >and the delivering it to the law enforcement agency... Politech archive on CALEA: http://www.politechbot.com/cgi-bin/politech.cgi?name=calea -Declan --- http://www.bartec.com/content/whatshotCOPS.html C O P S "CALEA OPERATIONS" ______________________________________________________________________ BARTEC's simple, affordable, intelligent solution for CALEA intercepts! Click here for COPS diagram Click here for a diagram of a typical COPS configuration. What Is COPS? CALEA Operations (COPS) is BARTEC's solution for the Communications Assistance for Law Enforcement Act (CALEA) which will begin implementation on June 1, 2000. COPS serves as the primary interface for delivery of J-025 standard messages from the Telecommunications Service Provider (TSP) to the law enforcement agency (LEA), as defined in CALEA legislation. A COPS workstation consists of: BARTEC COPS Software PC (configured for COPS specs) 8 Port Cisco Router / Modem Pool 100 base T Hub How Does COPS Work? A COPS workstation supports three critical tasks in the CALEA pen register intercept environment, as follows: 1. CALEA "D" and "E" Interface CALEA legislation defines "D" and "E" interfaces for telephone surveillance. The "D" interface is located in the TSP switch or regional facility. The "E" interface is located at the LEA. The "D" interface will require a TCP/IP wide area network (WAN) to be established between the TSP and the LEA. The WAN may be on a dial-up or dedicated private lease line (PVC) that is defined by the TSP or LEA. To meet interface requirements, the COPS workstation includes a Cisco router with eight modem ports. Modem ports one to seven are dedicated for "E" interface - one for each TSP. Modem port eight is reserved for communication with existing BARTEC devices for analog pen register intercepts. Remote command and control and automatic downloads for BARTEC's Micro DNR, SSL-12 Smart Slave and DLP-14/400 Wireless Intelligent Transmitter will be accessible via port eight. This feature is not available on any other CALEA intercept system, and will prove important and useful as telephone surveillance makes the transition from analog to digital over the next several years. 2. Data Compilation In a CALEA pen register intercept environment, TSPs will deliver J-025 standard messages, as defined in the CALEA legislation, over a call data channel (CDC). Each of the modem ports on the Cisco router supports CDC delivery of data in a number of formats. Analog data received on port will be in ASCII format. COPS assembles and converts all data in all formats for compatibility with many different analytical software packages. 3. Creation of Files and Distribution of Collected Data Once data is assembled and converted, it is compiled into files. Once files are created at the COPS workstation, data can be distributed for analysis or other CALEA functions. Distribution can take place via the LEA network to a secure server, on a daily or periodic basis. Data may be loaded manually or on demand to the server by the LEA network administrator. Analysis software typically resides on the server. In a CALEA wiretap intercept environment, COPS will test J-025 messages received from the TSP to determine if immediate distribution is required. Messages are routed through the LEA network to the appropriate BARTEC Digital Audio Recording Environment (DARE) workstation. At the DARE workstation, analog voice and data will be assembled by the COPS Micro DNR for real time access by the DNR. Why Buy COPS? COPS offers multiple CALEA intercept capability and supports both pen register and wiretap configurations COPS can interface with BARTEC analog pen registers/remote devices as telephone surveillance transitions to CALEA COPS offers future expansion to accommodate additional CALEA interfaces COPS is affordably priced, allowing even small law enforcement agencies to perform CALEA intercepts ______________________________________________________________________ ------------------------------------------------------------------------- POLITECH -- Declan McCullagh's politics and technology mailing list You may redistribute this message freely if you include this notice. Declan McCullagh's photographs are at http://www.mccullagh.org/ To subscribe to Politech: http://www.politechbot.com/info/subscribe.html This message is archived at http://www.politechbot.com/ ------------------------------------------------------------------------- 4787 From: James M. Atkinson Date: Wed Feb 13, 2002 7:17am Subject: Franklin High students adjusting to surveillance http://www.tennessean.com/local/archives/02/02/13655685.shtml?Element_ID=13655685 Tuesday, 02/12/02 Franklin High students adjusting to surveillance MICHELLE LORD / STAFF http://www.tennessean.com/local/archives/02/02/13657055.jpg Assistant Principal Todd Campbell views footage on the new security camera system at Franklin High School. By KNIGHT STIVENDER Staff Writer FRANKLIN - Say a Franklin High student forgets to put her expensive biology textbook into her backpack and leaves it sitting on top of her locker all day long. In the afternoon, she realizes where she left it, but it's no longer there. Because of a new security camera system at the school, someone in the office can quickly search video footage of that row of lockers to see when and how the book disappeared. ''It's pretty cool,'' said Tim McNeese, information services director for the county school system. Franklin High is the first school in the county to use such technology, which has cost taxpayers roughly $45,000. District officials want to bring the system to other schools as money becomes available. They've asked for $60,000 to wire up Page High next year with even more cameras. While some students initially were wary of cameras rolling in every corner, Franklin parents seem pleased with the experiment. ''I don't think it's meant to be a Big Brother, spy situation. I think they're more to protect the school during the time when the students are not present,'' said PTO President Pat Anderson. A year ago, the school system heard proposals from several security companies seeking to install the camera system. Eventually, school system leaders decided they could get more for their money if they did it themselves. Bob Spong, maintenance director for the school system, estimates that the county saved $15,000 to $20,000 on the Franklin system by using in-house expertise. The result at Franklin High is a remote camera system that allows school administrators to select one of 32 different cameras and search for any activity during any time period. Several cameras keep track of activity outside, all of them programmed to record any motion 24 hours a day. Since the cameras only record when there's motion, the disk space used up by recorded images isn't overwhelming. In the hypothetical biology book situation, the student could tell an assistant principal she left the book on the locker after second period and discovered it missing after fourth. Using his desktop computer, the assistant principal could command the system to replay any movement around that particular area of lockers in the time frame given by the student. It's a system that, earlier this year, came in handy when some money was stolen at a wrestling tournament. The culprits, from outside Williamson County, admitted to the theft once they were told they had been captured on camera. ''We've created a safer learning environment for everyone,'' Spong said. McNeese said it would cost about $14,000 to add 32 more cameras at Franklin High, bringing the total to a number the school system thinks would be ideal. -- -------------------------------------------------------------------------------------------------- The First, The Largest, The Most Popular, and The Most Complete TSCM, Bug Sweep, Spy Hunting, and Counterintelligence Site on the Internet. -------------------------------------------------------------------------------------------------- James M. AtkinsonPhone: (978) 546-3803 Granite Island GroupFax: (978) 546-9467 127 Eastern Avenue #291http://www.tscm.com/ Gloucester, MA 01931-8008mailto:jmatk@t... -------------------------------------------------------------------------------------------------- People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf. - George Orwell -------------------------------------------------------------------------------------------------- 4788 From: Marty Kaiser Date: Wed Feb 13, 2002 7:47am Subject: Better way to get this to you FBI Vendetta Against Martin L. Kaiser III -------------------------------------------------------------------------------- Initially this page consisted of a compilation of news magazine and newspaper articles. I was under the impression that since I did not write these articles they would withstand the test of time. I was wrong. Not too long ago I received a direct threat from a well known U.S. intelligence agency ordering me to remove their three initials from these articles. Pointing out that asking me to remove their initials was essentially changing history didn't phase them... somewhere in my argument I mentioned Adolph Hitler. In the past I have purposely avoided making any personal observations and/or comments about these events and the stories surrounding them. The time is now right to make those observations and comments. The enormous damage caused to my family and me cannot be forgiven. These events are an insult to all my friends and associates... an insult to the United States of America... and an insult to the world community. Read on... Marty -------------------------------------------------------------------------------- First some comments on format. All my personal observations will be in BLUE while public records and direct quotations will be in BLACK. Names will be mentioned, where harmless, but where mentioning them may cause problems I shall simply put either initials or XX. -------------------------------------------------------------------------------- Deciding where to start was the most difficult part of this story. I decided to start at the beginning. Born in 1935, my family and I lived in the the hard coal region of northeastern Pennsylvania. We were surrounded by families from Czechoslovakia, Poland, Lithuania, Hungary and many other coal miner producing countries. Having the Kaiser name didn't help me much while these countries were being torn to shreds before and during World War II. The hatred expressed towards me by neighborhood children was enormous. As a child I had no idea that their animosity was anything other than the norm. My childhood obviously played a MAJOR role in what I became... there also were some shameful events that hardened me in ways few will understand... so I'll move on. During my pre-teen and early teen years I was fascinated by U control model airplanes and had a large collection of them. As radio controlled airplanes began to appear I found electronics more interesting. Shortly after the end of WW2 I received my amateur radio license W3VCG and still hold those call letters today. I can't say my school years were a shining beacon but at least I got through them. In prep school XX became my co-dependent good buddy. He was born without eyes but in spite of this I was able to get him involved in ham radio too. I took the glass out of the meters of an old rig and XX was able to tune it by the pressure the pointer exerted. He taught me how the loss of one sense is compensated for by the others. We had lots of fun together with this incident being the funniest. I had my Mom's hand-me-down 51 Caddy and would drive it to a long riverside park on the other side of the river from Wilkes-Barre. Then I would allow XX to take the wheel and speed up and down the park usually with his left arm out of the window banging wildly on the side of the car while grinning from ear to ear. In 1957, I was hired as a Research Technician by RCA Laboratories in Princeton, New Jersey. A group of 12 established scientists were my "bosses." Dr. Morton, co-inventor of television as we know it today... Dr. Rudy, inventor of many image conversion devices... one of our image intensifiers took the first pictures of the bottom of the polar ice cap and one took the picture of a single photon (one particle of light)... Dr. Forge, co-inventor of the vidicon and other TV conversion tubes... Dr. Sommers, inventor of the Iconoscope, the image conversion tube that made real time video possible... Dr. Kleitman, inventor of many high efficiency phosphors... Dr. Ching, inventor of many helical microwave amplifier tubes... Dr. Nergard, one of the people instrumental in the development of the Klystron oscillator that made radar possible... Dr. Klensch (Dick), (most of the work I did was for him) did basic engineering on a variety of projects... and many other truly brilliant minds. My job was to be their "hands." I designed and built much of the circuitry that permitted all of these men to continue with serious development. In our group I remember four other technicians, each with their own expertise. We worked well together as a team and although I was always sticking my nose (comments) into many, many projects other than mine it gave me the opportunity to be part of some incredibly interesting projects... the end results of which became technology and products we take for granted today. Obviously, I turned my amateur radio interests towards amateur television. I wrote extensively for technical journals, RCA in-house technical publications and radio amateur magazines and had my own ham TV station on the air. Another amateur television enthusiast, William Haldane (Bill), and I became close friends. He was part of RCA Service Company, a group that put our ideas into the field for further trials. At that time, Dr. Klensch and others, including me, were developing several schemes involving VVLF technology... below 10HZ... we used to call them "cycles" back then. Since we were all pretty much playing it "by ear" we had more fun than anyone should have in one lifetime. Here is a good example. Several hundred yards behind the main building was a small pond. A bridge crossed the pond and in the middle of the bridge was a small house for test equipment. A hydrophone was lowered from the house into the pond. Two hundred yards away a 10 foot long by four inch diameter rod was driven flush with the ground. Next to it lay a small loudspeaker connected to a microphone in the pond house. My job was to drop a 10 pound cannon ball onto the stake when Klensch yelled "go" and he, in turn, would measure the shock wave. So there I was in the middle of a field repeatedly dropping a cannon ball on the ground. Someone inside the main building noticed me and called authorities. Soon an ambulance was fast approaching across the field. My explanation caused all concerned side splitting laughter. After the ambulance left Klensch and I continued with the cannon ball dropping experiment. One day Bill approached me and asked if I'd like to go to Trinidad. Neither he nor I knew where that was but it sounded interesting. When I got home I grabbed the Encyclopedia and found out. After discussing it with with my wife I returned with a firm "YES." A month or two later Bill again approached me and advised that Trinidad would not accept our presence and asked if I would like to go to Antiqua. I didn't know where that was either but again said yes. A month or two later he told me that Antigua wouldn't accept our presence. He mentioned RCA had decided to set up the project on Barbados where there was a small U.S. Navy base and they simply would not tell the Barbadian government about the project. He asked if I would go there and I responded in the affirmative even thought I had no idea what the "Project" was all about. Finally I was given a briefing about a new high frequency (1 to 30 MHz) "Over the Horizon Radar" an RCA technician/ham had conceived. My job was to see if it would work. I later learned that the two islands had turned us down because it was during the Cuban missile crisis and they did not want to antagonize their friend, Cuba. I was transferred to RCA Service Company and sent to Burlington, Massachusetts to check out the hardware. When I got to Burlington, to my astonishment, NOTHING relating to the project was there! Within three months I appropriated or stole (allocated but not yet delivered... midnight raids, you know) and assembled all of the equipment needed in two 40 foot trailers. Finally the two trailers were ready to put on ships headed towards Barbados and Jamaica. My wife and I closed up the house and along with our 3 and 5 year old children flew, on probably one of the first 707's to take to the air, to Barbados. As soon as we got settled I went to the Navy base to announce my presence. The Captain of the base responded with total surprise. No one had informed him of our intention to set up on "his" base (north coast)! It turned out that the four RCA advance men never left Bridgetown (south coast), the capital city of Barbados, but instead spent their time enjoying the wonderful Barbadian rum and the strikingly beautiful Barbadian women! I was truly on my own. After some serious negotiating, the Captain gave me a few hundred square feet of space on which to set up my project. The trailer finally arrived and, you guessed it, there was no tractor on the island with which to pull it. Several trips to the junk yard solved that problem. The tractor also had no brake release compressor so I constructed a small gasoline powered compressor to do just that. The trailer was then towed, without brakes, over mountainous terrain! My caravan consisted of myself in a 1958 VW waving a very large red flag out of the window followed by the tractor/trailer. As I passed through villages many Barbadians ran out to the street clapping their hands and jumping wildly in joy thinking the island had been or was going to be taken over by Communist! After the trailer was in place I began installing four HUGE log periodic antennas. Two were 150 foot long 1 to 30 MHz vertical log periodic curtains and two were huge, and very heavy, 3 to 30 MHz horizontal log periodic beams mounted on the 100 foot towers that supported the curtain. They were to be supported by 1/2 inch nylon rope. Nearly every night Barbadian fishermen would "liberate" some of my beautiful rope. To solve that problem I made several meaningless medallions that my workmen had to hang around their necks while working at the antenna site otherwise they would become impotent. When word got out about that, the thefts stopped IMMEDIATELY! To see the antennas and trailers go to my NOSTALGIA page. My family and I settled into the wonderful Barbadian life but the peace didn't last long. One day while working on the antennas I heard the drone of a four engine airplane. Looking up I saw a Russian bomber at about 1,000 feet with its bomb bay doors open and a large camera sticking out. Others obviously saw the plane too because it wasn't long before the American Ambassador was banging on my door. Since my wife is the politician of the two of us I let her handle the incident. Sure enough, after a few of her special cherry-cheesecake pies we were back on track. Those pies seemed to be the magical answer to the many other situations that would arrive. In record breaking time I had the equipment up and running. All of the equipment worked fine and we were ready for the next step. That phase was up to someone else. A couple of years ago my copy of Microwave magazine arrived and lo and behold my project is STILL in operation. Again see the NOSTALGIA page for that article. On my return to the U.S. I approached RCA Laboratories to change my title from Senior Technician to Associate Engineer in view of the fact that I had, under very difficult conditions and circumstances, acted as international diplomat and single handedly managed, designed, built, refined and operated a major project. They essentially said that since I did not have an engineering degree I was a "certifiable dummy" and my title could not be changed. That was the end of my career with RCA. For a brief period I worked at Telerad Manufacturing, a division of the Lionel Corporation (toy trains), where I developed and oversaw the manufacturing of, among other products, the command receiver for the Atlas missile. Petrovend Corporation asked me to develop possibly the worlds first dollar bill changer. They wanted to put the changer into all of their gas pumps. The unit worked great but soon credit cards made the scene. Petrovend dropped the project in favor of credit cards. I returned to college to receive my degree in Business Administration. Most likely with RCA's comment in mind along with being more mature, I totally surprised my wife and myself by spending all remaining semesters on the Deans List. While at college I took up flying and on graduation looked for a job in the field of avionics. Narco Aviation Products hired me to work at their marine facility in Cockeysville, Maryland. The company, Enac Triton, was essentially a one man show. I eventually thought, if he can do it, so can I! That job lasted about three months. One day, in 1964, I announced to my wife that I was starting my own company. Naturally, she went into a panic. Not knowing exactly how to start a company, I picked up the telephone book and called the maintenance department of the first industry listed... Armco Steel. They agreed to give me a try and handed me an inoperative Curtis Immerscope. An Immerscope is a device that ultrasonically looks through a steel ingot to find flaws or air bubbles. I took it home in my 57 Chevy, cleaned it up and replaced all high voltage wiring. The maintenance manager was ecstatic and told me to "sit" while he called his equivalent in other companies to tell them he had finally found the man they had been looking for. Within weeks I had over fifty industrial customers within easy driving distance. Initially, I was uncertain about how much to charge my customers. One day at 2:00 AM I received an emergency call from Armco. Their vacuum degassing furnace had been damaged by some molten steel in the wrong place. This furnace was thirty feet in diameter and forty feet deep. Its load cell system (scale) was accurate to within less than one pound at 100,000 pounds! I climbed down inside the furnace and found the burned wiring. A few quick repairs had it up and running in no time. I billed them $200.00. A few days later the maintenance manager called and asked me to stop by... I did. He told me that Armco would have lost roughly $2,000,000.00 (1965 $s) if the steel awaiting the degassing furnace had hardened were it not for my timely and prompt repairs. He handed the invoice back to me and told me to add another zero! I WAS ON MY WAY!!! Obviously, I was wrong in charging only an hourly rate for my time when I should be charging for the value of the service from the customers prospective. My customers included steel mills, copper refineries, bottling companies, plastic companies, ice cream cone manufacturers, plastic and paper cup manufacturers, canning companies, veneer manufacturers, breweries and nearly 100 more. My 57 Chevy was a blue streak Earl Scheib Special (that was a "paint your whole car including the tires for $19.95" company... just kidding about the tires)! When called by my first brewery I learned very quickly that the "new" beer comes down the pipes very early in the morning and it is was mandatory for all employees, including me, to drink as much beer as possible while the machinery cooled down. I was on a first name basis with many famous cockroaches. In a brewery it impossible to get rid of those little critters even with soapy superheated steam. It was after one of those brewery trips that I got lost in downtown Baltimore (I can't imagine why!). I passed a gate that said "U S Army Intelligence, Fort Holabird." Hey, perhaps they too had something to fix. I drove around the property until I found a door that said "Supplies." A simple knock on that door put me into the "intelligence business." After repairing shelf upon shelf of equipment and noticing the allocation tag on each showing the value (price), I approached the powers to be and asked if they would consider my manufacturing for them exactly what they wanted... and at a greatly reduced price. My offer was immediately accepted and I was now in the intelligence equipment manufacturing business starting with the UAA-1 and 1059. Miniature transmitters (eavesdropping/bugging devices) intrigued me and I manufactured a wide variety of them. It didn't take long after I got into the bug building business for me to see the potential danger of those little devices so I decided I'd better get busy and start manufacturing bug detectors or countermeasure equipment to find them. Marketing my products was a snap since I could walk into virtually every intelligence agency in the Baltimore/Washington/Virginia area. I also began teaching courses on bugging and bug detection at Fort Holabird and that gave me access to other good marketplaces. By the mid-70's I had close to 200 customers (I know this because I put a list of them together for my trial). They included corporations large and small and foreign, federal, state and local governments. I did many high level sweeps that got lots of good press. Once firmly established in the intelligence equipment manufacturing business several magazine, news magazine and newspaper articles appeared about my company. It was a VERY satisfying time but it invited many people who were mildly crazy and some who were totally insane. For those I contacted their spouses or relatives suggesting they be hospitalized... and many were. One character turned out to be a professional litigant who was seeking affidavits to incriminate the Baltimore City Police Department. He left by air route. I later learned that the City of Baltimore settled out of court with him for $33,000.00. One sad fellow was convinced the Martians were following him. I built a Martian Ray Detector for him hoping that might ease his paranoia. He returned to my shop several times... each in a more depressed state. Finally, in desperation, he used a pair of ordinary gas pliers to pull out one of his molars thinking that was the homing device the Martians were using. He wrapped it in aluminum foil so the Martians couldn't track it and brought it to my shop. Out of curiosity I had my dentist X-ray the tooth and that revealed only a pin (antenna?). His wife joined him on his next visit and she and I decided on the obvious next step... the hospital. In the early 70's a disheveled man wearing mismatched jacket and pant and tennis shoes showed up at my door. Thinking he was just another unbalanced person I told him I had some sensitive material on my desk and asked if he would return in an hour. I used that time trying to figure out what to do with him. It was Edwin Duncan (now deceased) owner and President/Chairman of Northwestern Bank headquartered in North Wilkesboro, North Carolina. He told me he was having security problems at his bank and was afraid the IRS was bugging him. I agreed to train his security office, Jerry Starr (also now deceased), who in turn purchased a quantity of countermeasure equipment. Jerry eventually called me from the bank's home base in North Wilkesboro and asked if I would come to the bank and go through a sweep with him. He instructed me to go to the Baltimore/Washington International (BWI) airport and a company plane would pick me up and take me to North Carolina. I was impressed. Sure enough a twin engine turboprop showed up and ferried me to North Carolina. On landing at their home airport in North Wilkesboro I noticed the pilot push a button on the instrument panel and the doors of the very LARGE hanger ahead slid open. Inside the hanger were at least six, and probably more, beautiful white airplanes each with the Northwestern Bank logo on the tail. They ranged in size from a four engine Fairchild turboprop down to a classic Twin Beech. I was very, very impressed but wondered... what is a small North Carolina country bank doing with all these airplanes? Jerry later revealed that one of them had been set aside for North Carolina Senator Sam Irvin of Watergate fame. We performed an extensive sweep of all buildings and did indeed locate a device in the locked office of the Comptroller. I left finding the actual device to Jerry and returned to Baltimore in the same airplane. As years went by I learned a great deal about Duncan. He turned out to be a super patriot and used the banks enormous resources to fund various special operations conducted in foreign country's (most likely that is why he kept the IRS at bay). For example, in 1972, while visiting a friend with the Dade County (Miami) Bomb Squad I passed through the airport concourse and noticed a banner saying "Fly to the Cayman Islands... $62.00 round trip." Noting that I could get there and back in one day, I grabbed a flight. On landing in Cayman I knew that this is where I wanted to be. On my return trip I began scuba diving with XX. In time, I switched to a new company run by one of his dive masters. Several years later I again switched to a new dive operation that had a dive boat more to my liking. The dive master and I became very close friends. One day we got into a conversation about my work and he revealed that when he was a youngster he and several of his friends were snorkeling in a small lake located on the inland side of the main road across from where Laguna del Mar Condominiums now stands and they stumbled upon a huge underwater cache of weapons. He, and each of his friends, put a machine gun on each shoulder and marched into town. Word of the incident swiftly reached Jim Bodden, the father of the Cayman Islands, and he knew exactly who to contact to solve the problem, Duncan. Duncan grabbed plans for one of his existing banks, filled in the lake with marle (crushed limestone) and stuck one of his banks on it. SOME CORK! The bank was put up with such speed there was no time to change the design and it wound up with the drive-in-window on the wrong side (they drive on the left in Cayman). Feeling particularly spry one day I called FBI Director J. Edgar Hoover and told him I manufactured products that might be of interest to him. He promptly invited me to visit him at headquarters. Walking into his office I immediately noticed that his desk was on a four inch pedestal and the legs on the sofa had been sawed off. I sat on the arm of the sofa and looked at him eye to eye. I think he liked that. He passed me on to their intelligence support office where I met XX. XX took me to the U.S. Recording Company and explained how to do business with the FBI through that company. Business went along fine until the Omnibus Crime Bill (Title III) was passed in 1968. Upon reading it, I immediately saw that I could not deal with apparent commercial concerns such as U.S. Recording. The FBI gave me a rubber stamp that essentially said "This order complies with the provisions of the Omnibus Crime Bill." Seeing real problems with that arrangement, any equipment ordered through U.S. Recording was delivered DIRECTLY to the FBI with the invoice going to U.S. Recording. During one of my many visits to the FBI technical section I noticed one of my invoices sitting on XX's desk and it was marked up a substantial percentage. I thought that was strange but paid no further attention to it. In 1972 a company called Audio Intelligence Deices (AID) made its appearance. Their catalog claimed they could make "off the shelf" delivery... an apparent violation of Title III (Omnibus Crime Bill... it is illegal to manufacture, assemble, possess or offer for sale any device primarily designed for surreptitious interception of oral communications UNLESS you are under contract with a federal, state or local government). I had been warned on numerous occasions that I could not manufacture any device unless I had the contract in hand first so immediately brought this apparent conflict to the attention of the U.S. Attorney General. Many, many letters followed. Eventually he commented... You do what you think is correct and if you're wrong we will arrest you! Built into the Omnibus Crime Bill (Title III) was an automatic five year review period. In early 1975 I was contacted by investigators XX and XX of the U.S. House Select Committee on Intelligence. They asked that I prepare a statement detailing my observations of the effectiveness of the Omnibus Crime Bill. During our conversation I mentioned how I was dealing with the FBI through U.S. Recording, the rubber stamp and the incident about the marked up invoice. I prepared a statement primarily asking why AID was permitted to inventory and market "off the shelf" equipment while I could not. After my statement was prepared I contacted the CIA and FBI to see if there were any problems with my appearing before the Committee. The CIA asked for a days delay (a huge snowstorm saw to that) and then gave me the O.K. The statement was turned over to the investigators and a day was set for my appearance before the Committee. Upon taking a seat to read my prepared statement, to my astonishment, it had been completely rewritten! The new statement attacked the FBI and made no mention whatsoever of AID. I immediately told XX that I was NOT going to read that statement. He instructed me to go to an ante room and repair it where ever I felt it was needed. Not anticipating this level of deception I had not brought a copy of my original statement. If I had, I most certainly would have read that instead. Given little time to repair a non-repairable statement, I did the best I could. When I read the revised statement all of the Congressmen looked at each other, me and the paper in front of them, wondering what was happening. To this day I do not know which of the three statements was read into the Congressional Record and... quite frankly, I don't give a damn. On returning to my office I telephoned FBI Director Kelly and requested a meeting with him. Two other high level FBI officials were present. I later read the internal FBI communications about that meeting. One of the men wanted to seriously deal with the U.S. Recording problem while the other wanted to execute me on the spot! Shortly afterwards two FBI agents showed up at my plant and tried to get me to withdraw my testimony. Every half hour one agent would leave the room to go to the "bathroom" i.e. change the tape in his recorder. He didn't even have the common sense to flush the toilet, that was on the other side of the wall from my office, to cover his activities. They tried to force me to sign their statement. I initially refused but later agreed to sign it with the statement "I have partially prepared the above statement." That got them out the door. Shortly after that incident a "private detective" called and asked if I would show him how to three wire a telephone. We met in a conference room at a local motel in Towson. He handed me a screwdriver and I handed it right back to him and told him if he wanted to learn the process HE would have to do the work. About that time I noticed the toes of a pair of wing-tipped shoes at the bottom of the curtain that separated the room. Finally that person entered the room and, along with the other, tried to force me to make the modifications. I declined and departed. What a bunch of nonsense. In a few weeks just about every common criminal in the Baltimore area began showing up at my plant. None got in the door. The FBI must have covertly informed these scum bags they were being wiretapped by the FBI and Kaiser could fix their problems. This type of nonsense went on for years. Within months of my testimony before the House Select Committee on Intelligence my business of manufacturing eavesdropping and countermeasure equipment fell to ZERO! Fortunately, I had ability to shift into the manufacture of bomb detection and disposal equipment, a marketplace the intelligence community couldn't and wouldn't dare try to control. Heh, heh... was I wrong... again! -------------------------------------------------------------------------------- Even though it is slightly out of place time wise, I'm putting the Lou Panos Evening Sun article next. Events from roughly 1975 onward attach to the FBI criminal case and I'll pick up there. The Evening Sun Baltimore, MD Monday, October 25, 1976 Witness's Business Suddenly Drops When the House Select Committee on Intelligence invited Marty L. Kaiser to testify at its hearings on illegal wiretapping by government agencies, he did the statesmen a favor and accepted the invitation. Now they can return it by helping him answer a question: Why is it that he averaged about $200,000 annual in business from these agencies before he testified just one year ago and has averaged zilch since then? That's what has happened to Martin Kaiser since he went to Washington last October and startled the intelligence community. He offered evidence that prices for equipment he had sold to an FBI front had apparently been marked up by about 30 per cent before delivery from the front to the FBI. Word later came that Edward H. Levi, Attorney General, ordered an investigation of links between several top echelon FBI officials and the head of the firm serving as the original recipient of the equipment. Citizen Kaiser is the slightly stout little fellow from Timonium who has been called "the Michelangelo of electronics" because of his uncanny talent for making things out of juiced up wires and finding such things made by others to bug their fellow man. There was a time when his marvelous little devices - all assembled by his nimble brain and nimble fingers in a small block building next to Brooks Robinson's sporting goods shop - were the rage of the FBI, Secret Service, armed forces and private customers in the world of the super-duper snoop and counter-snoop. His developments in electronic eavesdropping for law enforcement and government intelligence had made him one of the most widely publicized and sought after specialists in the field. His equipment and techniques led to the discovery that bugs had been placed on telephones in the offices of Governor Mandel, at least four other governors, and Milton A. Allen, the Supreme Bench judge who was then state's attorney for Baltimore. The big, red car in his driveway is known as his "President Sadat Cadillac" because he bought it after a lucrative service performed for the Egyptian chief, training his aides in electronic counterintelligence. Such foreign work and private assignments like countering industrial espionage, says Marty Kaiser, have enabled his company to survive the withdrawal of government business. "I'm still busy, but most of my business comes from other sources," he says. "I've tried to find out why I was dropped so suddenly. After all, I didn't ask to talk to the committee. They invited me and made it clear that I'd be subpoenaed if I didn't accept the invitation. "I even went over and talked to (FBI Director) Clarence Kelley about it for an hour. I was only doing my duty, which is something the FBI certainly ought to understand, and he certainly seemed to understand. At one point Citizen Kaiser brought suit against officials of several intelligent and military agencies under the Freedom of information Act in an attempt to get an official reason for his freeze-out. "About the only thing I got out of that was word from the Army that they have no file on me. I told that they must have, became I was in the Army once. I even gave- them my Trial number, but they said my file must have burned up in a fire at the records center. For Martin Kaiser, who is more at home in the microcosmic world of transistors and printed circuits than the mystical world of Washington politics, there is something familiar about it all. Shortly before establishing his Timonium business 12 years ago, he helped develop a missile detection system heralded in 1964 by President Johnson using the bending beam principle in a device "seeing" beyond the horizon. At the time, he says, he was making about $6,300 a year for Radio Corporation of America after starting at $3,900 about six years earlier. For his sterling work, he was rewarded with an assignment as manager of the anti-missile project when it was moved from Burlington, Mass., to Barbados, West Indies. But one day, be recalls, an Air Force officer asked him to compare RCA's efforts with Raytheon in similar work. "After evaluating their work against RCA, I really felt they were doing a better job, really outstanding. I said so, and the and the next thing we knew was that Raytheon had the project. "I wasn't fired, because that wasn't the way they operate instead, they offered me a promotion - in Australia. "I said it was okay if they'd pay to move my wife and kids, too, but they said no, I'd have to pay. I calculated the costs and they came to roughly $14,000. So I didn't take the promotion." There is something faintly similar between the Australia to which Martin Kaiser was to be assigned in 1964 for his compulsive candor with an Air Force officer and the Siberia of the intelligence world to which he has been relegated for speaking out before the House Select Committee on Intelligence in 1975. For a man whose equipment may form the heart of the nation's defense and counterintelligence system, he seems to be getting short shrift. The least the committee owes him in return for his service is a little help in determining why. Obviously, I did NOT have a huge intelligence organization at my disposal so I did the best I could to uncover those who were liabling and slandering me. My success was limited and it wasn't until after my criminal trial that I uncovered one of the documents that provided the driving source for the incessant anger against me. As a Christian I found it difficult to believe that some individuals would continue a vendetta for such a long period of time... yet, it was true. Here is Attorney General Levi's report on the U.S. Recording scandal that Mr. Panos and I are referring to. Read it and weep. STATEMENT BY ATTORNEY GENERAL GRIFFIN B. BELL ON THE RELEASE OF THE U.S. RECORDING REPORT I am today releasing a report on an investigation of allegations that certain individuals misused their official positions while employed by the Federal Bureau of Investigation. After careful consideration, I decided to issue a full public report. When reporting on disciplinary actions taken against government employees, federal agencies have traditionally made public the administrative action taken and the nature of the conduct which caused the action to be taken, but have not always identified the particular individuals involved. There are, however, certain instances of employee misconduct which call into question the integrity of the institution itself. If the agency's mission is particularly sensitive, the misconduct serious, or the officials of high rank, then the public interest is best served by more extensive disclosure. It is this kind of wrongdoing which is described in the report I am releasing. In cases such as this one, personal privacy considerations must give way to the legitimate interest of the American public in knowing how its government operates and how high-ranking officials have abused their official positions and neglected their official responsibilities. High-ranking officials entrusted with public office simply cannot expect the same measure of privacy about the way they perform their official duties or use their offices as they could expect if they were private citizens. Moreover, the public has a legitimate interest in knowing and being able to evaluate how the heads of Executive agencies deal with official misconduct and take corrective action to ensure that similar, abuses of power and position do not recur. In this particular instance, it is my judgment that the public is entitled to know which officials engaged in the misconduct and which officials did not. The misconduct summarized here, and reports in the news media about these allegations, have cast a shadow over a great institution and over those of its officials who engaged in no wrongdoing whatsoever. I am vitally interested in restoring public confidence in the Federal Bureau of Investigation. This report will confirm that very few individuals engaged in improper conduct. We should bear in mind that this small number of individuals in no way represents the thousands of FBI employees who are dedicated, honest public servants and whose personal and professional integrity is beyond reproach. Today I asked Director Kelley to issue a bulletin to all Bureau officials in which it will be made clear that neither the Department of Justice nor the FBI as institutions, nor I, as Attorney General, will tolerate the kind of misuse of office or abuse of authority described in this report. I am pleased to note that Director Kelley has made the following structural reforms to prevent the recurrence of the kind of improper practices described in this report: 1. Reorganized the Inspection Division and renamed it the Planning and Inspection Division;' created the Office of Professional Responsibility, an Office of Inspections, and an Office of Planning and Evaluation; established within the Office of Inspections a separate Audit Unit, responsible for auditing all FBI funds and financial transactions; and organized the Division so that it reports directly to him, as Director. 2. Removed the Property Procurement and Management Section from the Division with budget responsibility, the Finance and Personnel Division, thereby making one Division head responsible for procurement and another responsible for the FBI budget and funds. Director Kelley has placed a Special Agent Accountant, a Certified Public Accountant, as Section Chief of the Property Procurement and Management Section. 3. Discontinued the use of the U. S. Recording Company as a "cover" or "cut-out" for confidential purposes and established controls to ensure that all purchases are made in accordance with government regulations. 4. Restructured the FBI inventory system, to provide built-in controls and audit trails, and initiated automation of the inventory system to provide better accountability. 5. Discontinued the FBI Laboratory and Exhibits Sections' practice of providing personal services to FBI officials. Director Kelley also has discontinued the use of the unauthorized cash fund once maintained in the Exhibits Section. 6. Reorganized the management and handling of the FBI Recreation Association (FBIRA) and its funds, so that FBIRA officers are aware of their responsibilities to prevent unauthorized expenditures. A new Treasurer of the FBIRA has taken office and is not responsible for any other FBI fund. 7. Replaced the FBI Confidential Fund with the Field Support Account, an imprest fund approved by the Treasury Department. 8. Developed and improved the FBI career development program for Special Agents to ensure that the best qualified individuals are selected for administrative advancement, substantially reducing the possibility that one person or group can control the selection of such candidates. In addition, Director Kelley assures me that the FBI has taken other steps to prevent the kind of misconduct described here. The Bureau has increased legal instruction within its training curriculum; held training sessions on the FBI guidelines for career agents; and issued detailed instructions to the field on legal questions concerning the legality and propriety of investigative techniques. In connection with the latter step, the FBI is seeking advice from the Department's Office of Legal Counsel with increasing frequency. I have asked Director Kelley to bring to my attention any improper attempts to have FBI agents conduct investigations or undertake activities which are not within the Bureau's authorized jurisdiction. I have directed all Bureau personnel to bring reports of misconduct to the attention of appropriate Bureau officials and, when necessary, the Office of Professional Responsibility at the Bureau and Office of Professional Responsibility here at the Justice Department. Recognizing the concern of Bureau personnel about threatened civil litigation., we have submitted legislation to the Congress which would protect FBI personnel against civil suits by substituting the government as defendant. I believe this approach will protect the rights of citizens without unfairly penalizing individual agents. The release of this summary report is intended to assure the nation that the Justice Department can investigate and police itself. It will also put all officials of this Department on notice that they will be held accountable to the American people for the manner in which they discharge their official responsibilities while employed as servants of the American people. # # # THE DEPARTMENT OF JUSTICE REPORT ON THE RELATIONSHIP BETWEEN UNITED STATES RECORDING COMPANY AND THE FEDERAL BUREAU OF INVESTIGATION AND CERTAIN OTHER MATTERS PERTAINING TO THE F.B.I. JANUARY, 1978 -------------------------------------------------------------------------------- THE DEPARTMENT OF JUSTICE REPORT ON THE RELATIONSHIP BETWEEN UNITED STATES RECORDING COMPANY AND THE FEDERAL BUREAU OF INVESTIGATION, AND CERTAIN OTHER MATTERS PERTAINING TO THE F.B.I. This is a report on a Department of Justice investigation of alleged misconduct by certain past and present officials of the Federal Bureau of Investigation. In the Fall of 1975, the House Select Committee on Intelligence provided the Department with information that certain officials of the F.B.I. were allegedly profiting from the Bureau's business transactions with its exclusive electronics equipment supplier, the United States Recording Company of Washington, D.C. On November 3, 1975, Attorney General Edward H. Levi requested F.B.I. Director Clarence M. Kelley to investigate these allegations. Director Kelley appointed an Ad Hoc Committee to oversee an inquiry by the F.B.I.'s Inspection Division, the Bureau unit ordinarily responsible for internal investigations. Attorney General Levi found the report of the Inspection Division and the Ad Hoc Committee to be incomplete and unsatisfactory. On January 2, 1976, he directed the office of Professional Responsibility and the Criminal Division to review the Inspection Division Report and conduct an independent investigation. The Deputy Attorney General requested two Criminal Division attorneys to work with the office of Professional Responsibility in supervising a special team of F.B.I. investigators, who were carefully selected from Bureau field offices for their ability and experience. I.R.S. agents were also selected to investigate the tax implications of the allegations. Hundreds of past and present F.B.I. officials were interviewed. Agent-accountants examined vast quantities of documents and records to determine the nature of the F.B.I. U.S.R.C. relationship and the FBI's procedures for purchasing electronic equipment. As the investigation proceeded and possible criminal violations emerged, a Federal Grand Jury in the District of Columbia, raided by the Criminal Division attorneys, began to review the findings of the Department's investigators. The investigation was completed on November 11, 1976. The findings went beyond the original allegations into other areas of misconduct uncovered by the investigation. The Criminal Division investigative report examined the use of Government material and personnel services by F.B.I. officials for their personal benefit; the administrative mishandling and misapplication of appropriated funds; the misuse of funds of the FBI Recreation Association -- a private association of FBI employees; and improprieties in the FBI's dealings with contractors other than USRC. PART 1 A. The Relationship Between the United States Recording Company and the Federal Bureau of Investigation -------------------------------------------------------------------------------- Joseph Tait has been owner and manager of the United States Recording Company (USRC) since 1938. Incorporated in 1969 in the District of Columbia, USRC sells and distributes electronic equipment, principally to the Federal Government. Mr. Tait started doing business with the Government in 1943, when Army Intelligence asked the Bureau's Laboratory Division, then interested in purchasing two Army microphones, to use USRC as a middleman. in the late 1940's, USRC contracted with the Bureau to service amplifiers, recorders and other technical equipment used by the Laboratory Division. From 1963 to 1975, USRC was virtually the sole supplier of electronic equipment to the FBI, and bureau purchase orders were frequently directed to USRC without open bidding as required by Government procurement statutes and regulations. _1/ FBI officials justified the exclusive relationship under a specific exemption for purchases that require confidentiality for security reasons. _2/ The following facts do not support this explanation, however. For instance, from 1971 to 1975, the Bureau made $500,000 worth of exclusive purchases from USRC which were not marked as confidential. Much of the equipment, including transmitters, receivers, and microphones, clearly fell into the "sensitive" category, but it was not clear why other "nonsensitive" equipment was purchased exclusively from USRC. Also, the Bureau took few precautions to insure the security and confidentiality of the FBI-USRC relationship. A number of electronic equipment manufacturers and suppliers were aware that the FBI used USRC as a middleman. The Bureau often purchased equipment directly from the manufacturer, but always paid its bills through USRC. USRC employees did not receive security clearances. The firm was broken into on at least two occasions. USRC made equipment deliveries to the FBI during working hours in a panel truck plainly marked "U.S. Recording Company." Moreover, the FBI failed to follow proper procedures for such "confidential" purchases. Section 252(c)(12) of Title 41 of the United States Code requires an agency head to make a determination that the purchase of certain equipment should not be publicly disclosed before public advertising and open bidding regulations can be suspended. ado evidence was found that either the Attorney General or the FBI Director ever made such a formal determination. The procurement regulations were also evaded, and the scrutiny of the Department of Justice avoided, by the "splitting" of orders to USRC so that no single order exceeded $2,500, the limit above which all purchase orders had to be advertised for open bid. _3/ From 1961 to 1973, the Bureau purchased large quantities of tape recorders, playback units, closed circuit television systems, video tape machines, laboratory test equipment and FM radio equipment under confidential contract with USRC to the virtual exclusion of all other contractors. The costs to the Government of this special relationship were considerable. From Fiscal Year 1971 through 1975, 60 percent of USRC's total sales were made to the Bureau. Department investigators examined 1,339 USRC sales invoices, compared the cost of each item, where available, to USRC to the price USRC charged the Bureau, and found an average markup of 23.8 percent from Fiscal Year 1969 through 1975. Individual markups varied widely and were as high as 40 to 70 percent. In addition to high markups, by using USRC as a middleman, the Bureau was not able to purchase equipment at discount prices offered by manufacturers for direct sales on large orders. For example, in 1971 the Bureau paid USRC $147,261.50 for burglar alarm equipment which could have been purchased from a New York supplier for $81,357.00. USRC asserted that its overhead costs amounted to 15 to 16 percent over the price it paid to the manufacturer. Department investigators found no objective evidence supporting a figure this high. These findings essentially confirmed allegations made by a Special Agent of the FBI's Radio Engineering Section in 1973. He reported that the FBI paid too much for USRC equipment, that USRC markups were too high, that FBI employees were forced to buy inexpensive items from USRC when they were available elsewhere, and that the FBI-USRC relationship was not confidential. An Inspection Division inquiry was made into those allegations, but this investigation found that during that inquiry key witnesses were not interviewed. One Bureau official, now retired, provided Inspection Division investigators with palpably inaccurate information. The committees which reviewed the inquiry recommended the continued use of USRC as a "cutout" (i.e. a middleman used to conceal the Bureau's identity from outsiders) for confidential procurement without any sound basis for the conclusion. The agent who made the complaint was denied promotion and then transferred to the Tampa Field office, where the Special Agent-in-Charge was told the agent was not a good "team" player and did not get along with other employees. The officials chiefly responsible for the proper implementation of procurement requirements and procedures were John P. Mohr, Assistant to the Director for Administrative Affairs; Nicholas P. Callahan, Assistant Director, Administrative Division; and G. Speights McMichael, Chief Procurement Officer. The investigation clearly established that these officials knowingly failed to apply required procurement procedures to purchases from USRC. Two possible motives were found for their actions. No evidence of cash kickbacks or bribes was discovered. Rather, a pattern of social contacts and minor gratuities was revealed between Mr. Tait and various FBI officials, including Messrs. Mohr, Callahan and Mc-Michael. In the 1960's, Mr. Tait and a number of high Bureau officials would get together at the Blue Ridge Rod and Gun Club (Blue Ridge Club)_4/ to play poker. The poker parties would begin on Friday evening and continue until Saturday noon. (Each participant paid the host, a Bureau official, for the cost of food and lodging.) Mr. Tait also entertained FBI officials on occasion at the Bethesda Country Club, Billy Martin's Carriage House in Georgetown, and the Rotunda Restaurant on Capitol Hill. There was no evidence of excessive drinking, associating with the opposite sex, payoffs, big winners or losers. Nor was there evidence that official FBI files were destroyed, as alleged, at the Blue Ridge Club. Mr. Tait often gave Laboratory Division employees small gifts at Christmas time, such as tie clasps, wallets, manicure sets, and desk calendars. In 1971, Mr. Tait gave one FBI employee a stereo playback unit for his car after he retired from the Bureau. A former USRC employee stated that in 1969 Mr. Tait purchased and paid for the installation of an eight track tape player with two speakers in John P. Mohr's Cadillac at a total cost of $172.12. There was no other evidence of any personal benefit to any other FBI official. The investigation also disclosed another possible reason for the Bureau's special relationship with Mr. Tait and USRC. Over the years, Bureau officials came to trust. Tait's willingness to keep the FBI-USRC relationship confidential, and especially, to keep Congress in the dark about FBI eavesdropping practices. In a March 14, 1963, memorandum to Laboratory Assistant Director, Ivan W. Conrad, M. Mohr ordered that: ...no recorders are to be purchased by the Bureau outside of USRC. The reason for this is because Mr. Tait of the USRC will protect the Bureau in the event questions are asked by a Congressional committee concerning the purchase of recorders by the FBI. Other companies will not do this for the Bureau. On May 22, 1964, after learning that Mr. Tait had been invited to testify before the Senate Subcommittee on Administrative Practice and Procedure, Mr. Mohr wrote in a memorandum: ...Mr. Tait told me he does not know at this point just what he is going to do with the letter but he does not intend to furnish the Subcommittee with any specific information. It should be noted that the Bureau purchases virtually all of its electronic eavesdropping devices from the U.S. Recording Company. Over the years bite. Tait has been an excellent friend of the Bureau and would go to any lengths to protect our interests from any sources. He is a personal friend of mine and he told me that he would most certainly furnish us with any response that he makes to the Subcommittee's letter before submitting it to the Subcommittee._5/ According to past and present employees of the Radio Engineering Section, Mr. Mohr's March 1963 order initiated the Bureau's exclusive relationship with USRC. The Department concluded that FBI officials showed an improper favoritism to Mr. Tait and USRC in violation of specific conflict of interest regulations of the Department of Justice._6/ However, no evidence was found indicating a fraudulent intent sufficient to make out a crime under Federal bribery or fraud statutes. B. Tax Investigation Mr. Tait was tried and, on June 20, 1977, acquitted of all tax evasion charges under Title 26, United States Code, Section 7201, for the years 1971, 1972 and 1973. The Department found no evidence that Mr. Mohr violated any federal tax laws. C. Conversion of Electronic Equipment Ivan W. Conrad, former Assistant Director of the FBI Laboratory Division, was found to have taken a large quantity of FBI electronic equipment to his home, principally, between 1964 and 1966. Conrad liked to tinker with electronic equipment and was a "ham" radio operator. The equipment included voltmeters, watt meters, battery testers, stereo amplifiers, consoles, speakers, microphones, cables, sidewinders, mixers, tape recorders, transformers, and other sorts of electronic gadgetry. This equipment was evidently delivered directly from USRC to Mr. Conrad's office at FBI headquarters and he took the equipment home. No record was made on FBI inventory files that Mr. Conrad had possession of the equipment. In late December 1975, after being questioned by investigators from the 1975 Inspection Division inquiry about unaccounted for equipment and after denying knowledge of it, Mr. Conrad, with Mr. Tait's assistance, shipped twenty-nine packages of electronic recording "ham" radio equipment and a large recording console from his home to the USRC warehouse in Southeast Washington. This included the equipment about which he had been questioned. A USRC employee made the delivery in a USRC truck. As much as eighty percent of the equipment had never been used and was in excellent condition. This equipment was subsequently recovered for the Bureau by this investigation. Purchasing documents revealed an acquisition cost of over $20,000. Mr. Conrad, who retired in July 1973, was interviewed four times during this investigation. He admitted that the equipment once belonged to the FBI. While head of the Laboratory Division, he ordered the equipment from USRC and then used it on "special projects" for Director Hoover, he said. He serviced the Director's television, hi-fi sets, short-wave radio, and designed a portable recording system for him. The console recorder was delivered directly to his home by Mr. Tait, and he took the other equipment home after USRC delivered it to the Bureau. He said that most of the equipment was obtained between 1964 and 1966. Mr. Conrad asserted that he never intended to convert this equipment to his own use. After Director Hoover died in 1972, he wanted either to buy the equipment from USRC or return it to the company. He said he was "tardy" in not returning it to Mr. Tait until late December 1975. In August 1976, in response to inquiries from this investigation, he delivered another shipment of electronic equipment to the FBI. He had signed this out of FBI Laboratory stocks in the early 1960's. Auto radios, control cables, heads, speakers, antennas, assorted accessory equipment, a stereo receiver, tape recorders, microphones, and a sound recording set were included in this shipment. It is believed that all FBI equipment that was in Mr. Conrad's possession has now been recovered. D. Goods and Services of the FBI's Exhibits Section The Department also investigated the allegation that FBI employees were required to provide goods and services to their superiors. The Exhibits Section of the FBI is staffed with accomplished craftsmen and artisans. Their official task is to design and construct exhibits for use in Department litigation and displays, furniture, and other exhibits for internal FBI use. The Radio Engineering Section is responsible for maintaining and servicing FBI electronic equipment. Interviews with past and present employees of those sections and an examination of photographs and personal logs maintained by some of them revealed that services were provided to FBI officials during official duty hours and that goods were produced for FBI officials with Government property and equipment._7/ This constituted a misuse of Government time and materials, contrary to federal law and regulations. 18 U.S.C. 641; 28 C.F.R.§45.735-16. Prosecutions, where otherwise possible, are barred by the statute of limitations as virtually all of the following misconduct occurred more than five years ago. 18 U.S.C. 3282. 1. Director J. Edgar Hoover Exhibits Section employees painted Director Hoover's house each year when he visited California during the summer. They built a front portico onto his house and dug a fish pond, equipping it with water pump and outdoor lights. They constructed shelves, telephone stands, and an oriental fruitbowl. Home appliances, air conditioners, stereo equipment, tape recorders, and television sets, and electric wiring were serviced and repaired by Radio Engineering. Section employees. Exhibits Section employees serviced his lawn mower and snowblower, maintained his yard, replaced sod twice a year, installed artificial turf, and planted and moved shrubbery. The Exhibits Section built a deck in the rear of his house, a redwood garden fence, a flagstone court and sidewalks. A power window with sliding glass doors was also designed and constructed. Clocks were reset, metal polished, wallpaper retouched, firewood provided, and furniture rearranged. Employees were on call night and day for this work. Mr. Hoover employed one grade 15 Bureau accountant to give him tax advice, maintain his tax records, and prepare his annual Federal tax return. His secretary or two associates would generally make the work requests. Exhibits Section employees were called upon to build gifts for Director Hoover every year for Christmas, his service anniversary and other special occasions. These gifts included furniture such as tables, display cases, cabinets, a bar and valets. Assistant Directors chipped in to pay for cost of materials. Employee labor, however, was not compensated. FBI employees called upon to perform these services did not think them proper, but felt compelled to follow orders for fear of losing their jobs, or of arbitrary transfers or promotion delays. 2. John P. Mohr Mr. Mohr had car radios repaired, the body of his son's MG repaired and repainted, and an elaborate dental exhibit constructed for his son, a dentist. At his home, Exhibits Section employees shaved doors to accommodate new carpeting, and Radio Engineering Section employees repaired his television numerous times, and installed phones, stereo hi-fi speakers (Mr. Mohr's property) and a burglar alarm system which required frequent servicing after installation (FBI property). They repaired his stereo and purchased and installed a new FM radio tuner in an existing cabinet which was modified by Exhibits Section employees. Mr. Mohr also received certain gifts made by the Exhibits Section, including a coat of arms, a dresser top valet, and an oak portable liquor cabinet in the shape of a wine case. Exhibits Section employees painted a desk and made a drawing board for Mr. Mohr. They made, at his direction, a walnut cigar box, a walnut tape-cartridge rack, a walnut wine rack cabinet whose value has been estimated at $2,000, and two walnut gun cases with glass front doors. Mr. Mohr had employees mount snow tires, wash, and transport his personal automobile to commercial garages for repairs. A battery was installed in his car and a turn signal lamp was replaced by Exhibits Section employees. Mr. Mohr also received tapes of record albums which were copied and distributed by Radio Engineering Section employees at the direction of former Assistant to the Director Cartha D. DeLoach. Mr. Mohr received services even after he retired in June 1972. Radio Engineering Section employees were sent to his home, at his request, to repair electrical switches, televisions, and the burglar alarm system which had been . installed earlier. Mr. Mohr also asked a Radio Engineering Section employee to repair his electric blood pressure machine. At Mr. Mohr's request to former Exhibits Section Chief John P. Dunphy, the Exhibits Section built a birdhouse according to plans he provided. 3. Nicholas P. Callahan For Mr. Callahan, Exhibits Section employees silk screened a felt cloth used for table games, cut doors at his house to accommodate new carpeting, printed maps showing the location of his beach home and finished styrofoam nautical objects to decorate it. They made walnut fishing rod racks for his beach home, assembled a lathe fence to prevent sand erosion at his beach home, and built a picket fence for his residence._8/ He had walnut shelves cut by section employees during official hours (he supplied the material), had a piece of plywood covered with weatherproof material for a shed roof, had Exhibits Section employees make a sign for his daughter and son-in-law with their name, and had former Exhibits Section Chief Leo J. Gauthier make a fuse box cover for the basement recreation room in his home. At his request, the exhibits section cast a desk memento in plastic for him to give to a friend and make him a set of stack tables which duplicated a set which had been made for Director Kelley (see below). Radio Engineering Section employees diagnosed troubles with his televisions and Exhibits Section employees framed his personal photographs. Mr. Callahan also received various gifts. He received a framed plaque which recited an Irish prayer, a plaque bearing his coat of arms, a dresser top valet, a portable oak liquor cabinet in the shape of a wine cask, a decorative Christmas tree ball and a gold medallion and chain for Mrs. Callahan into which a gold-disc with the FBI seal was set by the Exhibits Section (Mr. Callahan bought the medallion and chain). The valet and liquor cabinet were duplicates of gifts given to Director Hoover, Mr. Mohr and Mr. Dunphy. Mr. Callahan also received considerable services to his automobile. Employees test drove his personal car, did diagnostic work on it, took it out for washes, fill-ups, snow tire mounting, and servicing at garages and muffler shops. Scratches on his car were touched up. (Some employees, however, recalled that the whole trunk lid on Mr. Callahan's car was painted.) Mr. Callahan states that Mr. McMichael provided him with a Polaroid camera which he used for personal photographs.Film for the camera was also provided at FBI expense. He has since returned the camera.____9/ 4. John P. Dunphy On August 13, 1976, Mr. Dunphy pleaded guilty to a misdemeanor charge under Section 641, Title 18, United States Code, as part of an agreement with the United States as a result of which he voluntarily tendered his resignation from his position as Chief of the Exhibits Section and cooperated with this investigation.__10/ 5. Director Clarence M. Kelley on directions from Mr. Callahan shortly after Director Kelley and his wife moved to Washington, two sets of valances were made and installed in Director Kelley's apartment by the Exhibits Section and two television sets were purchased and installed by the Radio Engineering Section. After this investigation began, Director Kelley paid for the estimated cost of the valances. Director Kelley admitted he knew, after the job was done, that the Exhibits Section installed the first set of valances. when they proved unsatisfactory, he requested a second set to be built and installed. This set was also built and installed by Exhibits Section employees. The television sets were ordered returned by Director Kelley after this investigation revealed their source. Although Mr. Callahan said he directed that the televisions be loaned to Director Kelley, the sets were not entered on FBI equipment inventory until after their return from Director Kelley's apartment on February 19, 1976. The Exhibits Section also built a walnut table, a set of stack tables, and a jewelry box which were given to Director Kelley as gifts from the Executive Conference. He was unaware that the Exhibits Section made the gifts, he said. The Conference, by donations from its members, paid for the materials used in these gifts. Director Kelley's personal automobile received occasional servicing by FBI employees and his FBI-provided chauffeur performed personal errands for him. Section employees repaired a broken cabinet for Director Kelley, and mounted the FBI seal on a gold disc as a charm for the Director's wife. 6. Miscellaneous The practice of providing FBI goods and services to high Bureau officials was not limited to the above individuals. Clyde Tolson, long-time Associate Director under Hoover, had FBI employees develop several patented devices during official hours. These included a reusable bottle cap and a power window opener. These patents were assigned to the FBI. There was no evidence that Mr. Tolson personally benefited from the development of these devices. one of the power windows was installed for President Johnson in the White House. A second unit, designed and intended for President Johnson's ranch, was never completed. E. Imprest Fund There was evidence that an FBI official received reimbursement from the FBI Imprest Fund (petty cash fund) for personal purchases. G. Speights McMichael, Chief Procurement officer, denied that Imprest Funds were used for the personal purchases of Bureau officials. He stated that he did not check to see whether the purchases were proper. Under Federal law he was required, as the Bureau's chief procurement officer, to certify that each disbursement was proper and correct. Each voucher reads, in part: "I certify that the disbursements claimed herein are correct and proper..." Many of the personal purchases could have been used by the Exhibits Section and, therefore, could have escaped Mr. McMichael's attention. He admitted being derelict in his responsibilities as the Imprest Fund's cashier, disbursing and certifying officer. F. Confidential Fund Part of the FBI's annual appropriation is specified "not to exceed $70,000 to meet unforeseen emergencies of a confidential character to be expended under the direction of the Attorney General and to be accounted for solely on his certificate." The most common use is for payments to informants. Contrary to the appropriation language and to Federal regulations, this money was drawn from the Treasury by travel vouchers that failed to reflect the actual expenditures. Top FBI administrative officers were, therefore, able to maintain in cash form these monies over which they exercised custody and control. Field offices were given separate funds for payment of informants which were maintained in separate accounts in addition to the so-called "Confidential Fund" which was kept at headquarters. Also contrary to Federal regulations, the unspent portion of the yearly appropriation was accumulated. By 1974, the headquarters "Confidential Fund" totalled $34,000. Nicholas P. Callahan controlled the Fund from 1946, when he was Number One man to the Assistant Director of the Administrative Division, until July 1973, when he became Associate Director. John P. Mohr, Clyde Tolson, and Director Hoover could also authorize disbursements. A 1974 inspection of the Fund concluded that "no written guidelines exist pertaining to the utilization of this fund" and that separate records for this fund were kept by FBI administrative units apart from the FBI's normal accounting system and were not subject to Treasury Department audit. This investigation revealed uses of the "Confidential Fund" maintained at headquarters by FBI administrative officers that were not within the scope of the appropriation. _l2/ This investigation revealed that between August 1956 and May 1973 the Bureau purchased over $75,000 worth of electronic equipment with money from the Confidential Fund. No memoranda, purchase orders, requisitions, vouchers or similar documentation were located indicating why the equipment was purchased or who requested it. Mr. Callahan acknowledged that Mr. Mohr and he decided to use Confidential Fund monies to purchase electronic equipment. This was not done to disguise the nature of the equipment, he said, but to expedite large purchases of equipment. The Confidential Fund was also used to pay for public relations expenses. Between 1961 and 1975, $23,399.15 of Confidential Funds were spent on room rentals, food, drink and gifts for the liaison officers of foreign and domestic law enforcement and intelligence gathering organizations. Mr. Callahan approved disbursements for liaison functions. There was also evidence that Mr. Mohr, and, to a far lesser extent, Assistant Director Eugene W. Walsh, and Deputy Associate Director Thomas J. Jenkins also authorized such disbursements. Director Kelley recalled such an authorization by himself on one occasion. One of these officials stated that any expenditure which in any way aids "the detection and prosecution of crimes against the United States," including liaison functions, is justified under the FBI's total appropriation and that the Confidential Fund was used only to expedite reimbursement. He admitted, however, that the Confidential Fund had been obtained on the representation to Treasury that they would be used for "unforeseen emergencies of a confidential character." Congress had not been informed that the Bureau was incurring public relations and liaison expenses and paying them out of the Confidential Fund. The Bureau had never submitted a formal request to Congress or the Office of Management and Budget for the proper budget authority to make these Confidential Fund expenditures. Title 31, United States Code, Section 551, which prohibits the use of appropriated funds for lodging, feeding, or providing transportation to an assemblage, can be interpreted specifically to prohibit the use of the Confidential Fund for public relations and liaison purposes. This investigation also revealed that FBI officials used the Confidential Fund to cash personal checks. This practice was stopped after Mr. Welsh was questioned about the practice on May 21, 1976. No evidence was found indicating that any senior official applied these appropriated funds to his own use. G. The FBI Recreation Association The FBI Recreation Association (FBIRA) was founded in 1931 for the purpose of promoting and encouraging athletic, social and welfare activities among its members. The FBIRA is an independent and tax exempt organization whose membership is voluntary. The Association's funds were spent on athletic and social functions, group travel, clubs, hobbies, art shows, and publication of The Investigator, a monthly magazine reporting on FBIRA activities. Its constitution and bylaws provide for the election of officers and a five-member Board of Directors. This investigation revealed that between September 1951 and June 1972, Nicholas P. Callahan obtained $39,590.98 from the FBIRA designated for the "Library Fund." The Association's records contain no explanation or authorization for these disbursements. No disbursement requests or vouchers were found. Mr. Callahan was the Library Fund's only recipient and maintained the only records of its expenditures. Mr. Mohr periodically reviewed the records. Shortly after Mr. Hoover died, Mr. Callahan and Mr. Mohr discontinued the Fund and destroyed its records. Neither of the two FBIRA treasurers who served during this period knew why the fund was named the Library Fund in the FBIRA Disbursements Journal. The treasurers understood that these "Library Fund" disbursements were for Director Hoover's public relations expenses, such as office flowers, condolence telegrams, and for unspecified office expenses, such as books and newspapers. Only Messrs. Hoover, Tolson, Callahan, Mohr, and the treasurers knew about the "Library Fund" and disbursements were made to the Fund without the authorization of FBI-RA officers whose approval is required under the FBIRA charter. Mr. Callahan asserted that the disbursements were for official public relations and liaison functions for which appropriated funds are unavailable under law and that they were proper under a broad interpretation of the FBIRA constitution's "general welfare" clause because money spent promoting the FBI's general welfare is in the best interest of its employees. The investigation also revealed that $55,849.77 of FBIRA funds were expended on receptions for National Academy students and guests between April 8, 1958, and June 20, 1972. The National Academy is an FBI operated training and education facility for local law enforcement personnel around the country. The receptions were not FBIRA activities and they were not open to FBIRA members. About half the cost of the receptions was borne by those attending the receptions so that net cost to the FBIRA after offset by these donations was $29,443.67. The FBIRA constitution and bylaws do not provide for expenditures for such functions as National Academy receptions. From July 1952 to December 1975, another $12,219.90 of FBIRA funds were spent on miscellaneous or liaison expenses and on receptions, luncheons, retirement parties, and gifts for foreign law enforcement liaison officers, and senior FBI officials. The funds also covered the cost of FBI press receptions and other public relations expenses. Director Hoover, Mr. Callahan, Mr. Mohr, Mr. DeLoach, and Mr. Walsh, not the FBIRA Board of Directors, approved these disbursements, according to the records. The above facts established that, from 1951 to 1975, high officials of the FBI obtained funds from the FBIRA for public relations and other uses not authorized by its charter and without obtaining the approval of its Board of Directors. There is no evidence that these Bureau officials converted the money to their own use and, therefore, no evidence of criminal intent as required under Title 18, United States Code, Section 654. H. Special Agents Mutual Benefit Association (SAMBA) SAMBA is an unincorporated association designed to provide life and health insurance to FBI employee members. The Prudential Insurance Company has been SAMBA's underwriter since SAMBA was founded in 1948. SAMBA is independent of the FBI, with private offices at 1325 G Street, N.W., Washington, D.C. This investigation uncovered questionable expenses from SAMBA books and records. The amount of $635.21 was withdrawn from the SAMBA account to pay for a retirement party and gift for Mr. Mohr. $310.22 of this withdrawal covered the price of a Sears Roebuck fishing boat, which was delivered to Mr. Mohr by FBI employees. One SAMBA officer admitted that SAMBA funds were used, in disregard of its charter, to pay for retirement parties, luncheons, and gifts for outgoing SAMBA officials and Directors. Other questionable expenses included two professional football season tickets for the use of a SAr4BA official, Saturday work charges, wedding and anniversary gifts, and annual Christmas parties. Director Kelley and his wife, along with Mr. and Mrs. Mohr, Mr. and Mrs. Thomas Jenkins, and SAMBA President Thomas J. Feeney, Jr., and his wife, attended a weekend meeting in New York City with officials of Prudential Life Insurance Company, which underwrites the SAMBA policy. Director Kelley's travel from Kansas City, Missouri, to New York and return to Washington, D.C., was by Government Travel Request (GTR). Travel for Mrs. Kelley and the others was paid by SAMBA. Prudential paid all other expenses. Director Kelley subsequently reimbursed Prudential for these expenses. I. FBI Officials' Relations with Firearms Suppliers The Remington Arms Company, which bids on arms and ammunition contracts with the FBI, maintains a 300-acre working farm and game preserve in Chestertown, Maryland, called Remington Farms. On January 3 and 4, 1972, Remington hosted three FBI officials at Remington Farms and paid for their room, board, hunting licenses and stamps at a cost of $203.50. Twelve other FBI officials were hosted at the Remington Farm on three subsequent occasions, costing the arms dealer an additional $1,168 in room and board. Remington also paid for liquor, ammunition, guides and game shot on these four weekends. Although a breakdown by individual is not available for these costs, Remington spent a total of $2,013.96 for forty seven individuals for the four weekends. Fifteen of the forty seven guests were then active FBI officials. FBI records show that the Remington Firearms Company has not been awarded a firearms contract since 1971. The hunting weekends mentioned above all occurred after 1971. Six ammunition (not firearms) contracts have been awarded to Remington since fiscal year 1971, but each of these contracts was solicited and awarded after open bidding by the Justice Department. Although several of the FBI officials who attended the hunting weekends were in a position to influence the awarding of arms contracts, no arms contracts were awarded to Remington during the 1970's. Nor were arms contracts awarded during this time to Winchester Firearms Company which hosted a hunting weekend for three Bureau officials in 1973. The Federal illegal gratuities statute, Title 18, United States Code, Sections 201 (f) and (g), requires that the gratuity shall be "for or because of" an official act. This investigation found no evidence that the recipients of the gratuities did anything for Remington or Winchester, and therefore, there was no evidence warranting prosecution under this statute. The evidence does indicate that the Departmental regulation prohibiting the accepting of gifts or entertainment from those having or seeking a contractual relationship with the United States was violated. 28 C.F.R. §45.735-14(a). Moreover, the evidence shows that these employees also violated the general Departmental prohibition against conduct creating the appearance of impropriety. 28 C.F.R. §45.735-2. The Attorney General has referred this matter to the FBI Director with instructions to take appropriate administrative action against these employees. J. Miscellaneous Allegations 1. Financial Dealings Between Joseph C. Palumbo and John P. Mohr This investigation received information from the House Select Committee on Intelligence that John P. Mohr and Joseph C. Palumbo of Charlottesville, Virginia had had improper financial dealings. Mr. Palumbo and Mr. Mohr entered a financial arrangement in late 1972, after Mr. Mohr had retired from the FBI. The transaction was entirely lawful and at arms length and no evidence was found that Mr. Palumbo ever discussed the FBI or its activities with Mr. Mohr. 2. Official and Confidential Files During 1975, an investigation was conducted into the disposition of the "official and confidential files" of J. Edgar Hoover following his death in May 1972. The inquiry determined that the files were turned over to Assistant Director W. Mark Felt by Miss Helen W. Gandy, Executive Assistant to Mr. Hoover, on May 4, 1972, and now are located at FBI headquarters. No evidence was found that official FBI files of any kind were removed to Mr. Hoover's home following his death. A. PART II Summary and Actions Taken Against Principal Subjects 1. John P. Mohr (a) Mr. Mohr was Assistant Director for the Administrative Division of the FBI and the Assistant to the Director. He was primarily responsible for using USRC as an exclusive supplier of electronics equipment to the FBI. His conduct toward§,USRC violated 28 C.F.R. 045.735-2(b) and (c)(2) (prohibiting employees from giving preferential treatment to any person outside the Department). He received a few gratuities (tape deck, Christmas gifts) from Mr. Tait. No evidence was found that he was bribed, but he violated 945.735-14(a)(1), which prohibits employees from accepting gifts from those doing business with the Department. (b) FBI employees provided goods and services to him as described above. This arguably violated 18 U.S.C. 641 (conversion of government property to his own use), (prosecution barred by the statute of limitations), and 28 C.F.R. §45.735-16 (misuse of federal property). (c) Mr. Mohr was also responsible, along with Mr. Callahan, for using FBI Recreation Association and Confidential Fund monies for unauthorized public relations purposes. This matter has been referred to the Department's office of Management and Finance for appropriate action (see footnote 12 above). In 1972, he attended an expense paid hunting weekend at Remington Farms, an FBI arms supplier. This is a violation of the Department prohibition against accepting gifts from those doing business with the Department, 28 C.F.R. §45.735-14(a)(1). (d) No action has been taken against Mr. Mohr. He retired on June 30, 1972. Criminal action under all of the above federal provisions is barred by the five year statute of limitations. 2. Nicholas P. Callahan Mr. Callahan was Assistant Director for the FBI's Administrative Division and later Associate Director. In 1976, pursuant to Attorney General Levi's order, he was asked to resign as a result of this investigation. He did resign. (a) Mr. Callahan was responsible for improperly diverting thousands of dollars of FBIRA and Confidential Fund monies to official FBI public relations activities. The funds were not authorized or appropriated for public relations activities. There was no evidence that he converted these funds to his personal use, and therefore, no evidence warranting prosecution. This matter has been referred to the Department's Office of Management and Finance for appropriate action. (See footnote 12 above.) (b) Mr. Callahan admitted receiving FBI goods and services. FBI employees decorated his beach house, built a fence, walnut shelves, and other furniture for his residence. The statute of limitations bars prosecution of Mr. Callahan for receiving government property in violation of 18 U.S.C. 641. (c) No evidence was found that Mr. Callahan was bribed or that he received illegal gratuities. (d) No further action has been taken against Mr. Callahan. 3. Ivan W. Conrad Mr. Conrad was employed by the FBI Laboratory in many positions from 1934 to 1973. He retired on July 12, 1973, as Assistant Director of the Laboratory. (a) Mr. Conrad took many pieces of electronic recording and amplifying equipment home with him and used them for his own benefit. Mr. Conrad asserted he had the equipment for legitimate purposes. The Department recovered all equipment, and Mr. Conrad tendered a $1,500 cashier's check to pay for his use of the equipment. (b) No further action has been taken against Mr. Conrad. Prosecution was barred, in the judgement of the Criminal Division, by the statute of limitations and because of the lack of evidence showing criminal intent on the part of Mr. Conrad. 4. Clarence M. Kelley Director Kelley received the limited amount of goods and services described above. He was not involved in any of the other matters which are the subject of this report. Attorney General Levi and Deputy Attorney General Tyler determined that no disciplinary action was called for, but that Director Kelley should reimburse the Bureau for the goods and services he received. That has been done and no further action against him has been taken. Director Kelley should be given credit for putting an end to the improper practices described in the report. His cooperation greatly assisted Departmental investigators in uncovering the facts. His cooperation made this report possible. It should also be noted that Director Kelley was primarily responsible for bringing about the internal reforms set forth in the final section of this report. 5. G. Speights McMichael Mr. McMichael is no longer in charge of, but continues to work in, the FBI's Property Procurement and Management Section. He is no longer cashier of the Imprest Fund, a petty cash reimbursement fund. (a) Mr. McMichael clearly neglected his responsibilities in managing the Imprest Fund. There is some evidence that he permitted violations of procurement procedures to favor USRC in the purchase of electronic equipment. 41 U.S.C. 252(c)(12). There is no evidence of bribery. (b) While serving as the FBI's chief procurement officer, he attended an expense paid hunting weekend at Remington Farms. This is a probable violation of the Depa