Nothng in the Sunday Times, but a third piece in the Toronto Star...looks like the Star has not archived the previous stories yet. http://www.thestar.com/editorial/news/20000827NEW08_LAWSPIES.html The Toronto Star News Story Mail this story to a friend August 27, 2000 American claims pirated software sold to Canada Mounties probe possible breach of security Ex-Israeli agents back ``trap door'' allegations Tale of spies and conspiracies Founder of computer software firm pins hopes on the RCMP By Valerie Lawton Toronto Star Ottawa Bureau WASHINGTON - Bill Hamilton has spent the last decade telling a bizarre story about spies, computer software and conspiracies. Now he hopes Canada's Mounties will prove his tale is actually true. `It's the first time that there has been the possibility of a credible criminal investigation of this.' ``It's the first time that there has been the possibility of a credible criminal investigation of this,'' Hamilton, owner of the tiny, Washington-based Inslaw Inc. software company, said yesterday in an interview. The Star revealed last week that the RCMP are investigating the possibility foreign spies used doctored software to hack into highly sensitive intelligence files. The Mounties have since confirmed they are looking into a possible breach of national security. Hamilton's stranger-than-fiction story - in brief - is the following: He sold software he'd developed to the United States justice department in the early '80s. The software, called Promis, was used by prosecutors to keep track of their cases. Not long afterwards, the justice department stopped making payments on the $10-million contract. Hamilton alleges the U.S. government stole the software, then - along with the Israelis - sold pirated versions to intelligence agencies around the world. He also believes those stolen versions were equipped with a hidden ``trap door'' that allowed spies to peek into top-secret databases and download any information they wanted. The U.S. justice department has suggested the claims are fantasy. From this point, the Inslaw story can spiral into an octopus of other odd-sounding conspiracy theories and allegations. Hamilton, 60, tells it all methodically. He remembers precise dates and details, and points to corroborating evidence for his claims. But part of the problem for Hamilton is that many key pieces of that evidence come from a cast of unusual characters. Two shadowy ex-Israeli spies have confirmed the basics of the story. An American computer whiz, who claims CIA ties, has said he was involved in modifying Promis software for use in Canada. (He's now in prison serving time for what he claims are trumped-up drug charges.) Hamilton sounds like he hasn't quite figured out how he landed in the middle of this mess. ``My wife and I are from the Midwest and it's the least conspiratorial-minded place. You take people more at face value,'' he said. He has doggedly been fighting for compensation from his government - and trying to prove his stranger-than-fiction tale. The RCMP investigation could be what he needs to do that, he said. In the interview at Inslaw's offices in downtown Washington, Hamilton said the Mounties first called him earlier this year. He has spoken with the chief investigator on the case ``probably dozens'' of times since then. He refused to talk about exactly what the Mounties want to know from him. He has a lot at stake in the probe and doesn't want to jeopardize it. His marathon fight has come with a huge financial and emotional cost. Hamilton owes creditors millions. Lawyers' bills alone have run to over $7 million. At one point, Inslaw was forced into bankruptcy and sheriffs were knocking on the door at his family's home. The Inslaw office shows signs of the company's financial strain. Impressionist prints on the wall are faded. The green carpeting is dotted with stains. The company runs its accounting system on an ancient Wang computer. There's just not enough money to replace it. Hamilton's first inkling that his software had been sold illegally outside of the U.S. was in 1991, when the government of Canada called. A bureaucrat was making a routine inquiry. The government, he said, was using Promis and was hoping a French version was available. Some 900 government offices had it. Alarm bells went off at Inslaw. Canada wasn't licensed to use the case-management software. Later, officials in Ottawa insisted there had been a mistake and the software wasn't Inslaw's Promis after all. At that time, both the RCMP and the Canadian Security Intelligence Service denied they were using Promis or a version of it. CSIS repeated its denial last week. The RCMP, however, now refuses to comment. People interviewed for the investigation say the Mounties have told them the force has been using the pirated software. Hamilton's U.S. sources have told him the software was sold to Canada for $31 million in 1983. If that information is correct, he figures the Canadian government now owes him double that, once interest is added, for the software's use. He stands to claim billions of dollars if allegations that numerous countries around the world are using the software eventually prove true. Hamilton's r�sum� includes some experience in the intelligence world. He was a student at the University of Notre Dame when his aptitude for languages caught the attention of the ultra-secret National Security Agency (NSA). The U.S. was fighting a war in Vietnam at the time. Hamilton was taught to read and write Vietnamese and reportedly worked as a code breaker, though he refuses to talk about his secret job. He was also involved in a computer project at the agency - something he also politely declines to discuss. After leaving the NSA, he heard that the District of Columbia government wanted a case-tracking system for its prosecutors' offices. Promis was born. Hamilton said some U.S. prosecutor's offices are still using the old version. The technology - advanced for its time - still does the job, he said. Inslaw has a new, completely revamped generation of the software with more modern graphics and point-and-click features. It has recently been installed in a couple of large U.S. insurance companies to track insurance claims, litigation and prosecutors in Scotland are also using it, Hamilton said. The company now has 35 employees. (In 1984, there were 185.) Despite the RCMP investigation, Hamilton concedes he's seen promising developments in the case lead nowhere. In 1987, an American bankruptcy court ruled there was evidence the U.S. justice department used ``trickery, fraud and deceit'' to steal Promis. The ruling was later overturned on procedural grounds. A three-year investigation by the House judiciary committee was also highly critical of the justice department. It said some officials had acted to ``misappropriate'' the software. The committee - which also attacked the Canadian government for thwarting its investigation by limiting access to officials - concluded with a call for an independent counsel to look at the case. `In retrospect, if we had to do it over again, we wouldn't. It isn't worth it. But we didn't know what was involved.' A later report by a retired judge hired to probe the matter came to a different conclusion. He said there was no credible evidence the software had been stolen by the justice department. Hamilton, stocky and bearded, is keenly aware of how much time has passed since his troubles began. The youngest of his six children was born in 1983, right around the time the U.S. justice department stopped making payments. Brendan is now 17. Hamilton and his wife, Nancy, Inslaw's vice-president, have tried their best to keep family life as normal as possible. He is adamant the interview for this story must end in time for him to make it to a football game with his family. ``My wife is determined not to allow that thing to take up any more of our lives.'' Hamilton said he wishes now he had simply walked away from his contract dispute with the justice department. The only thing that keeps him going is the fact he owes creditors ``an awful lot of money.'' ``In retrospect, if we had to do it over again, we wouldn't. It isn't worth it. But we didn't know what was involved.'' A mother's story: 'I love wee babies' [Gamester] Spurr's father fumes about police deal Legal Notice Copyright* 1996-2000 Toronto Star Newspapers Limited. All rights reserved. The reproduction, modification, distribution, transmission or republication of any material from http://www.thestar.com is strictly prohibited without the prior written permission of Toronto Star Newspapers Limited. Contact Us Related Links WALKERTON'S TRAGEDY CONCORDE CRASH COLUMNISTS VISIONS OF TORONTO WEIRD NEWS Of interest: > -----Original Message----- > From: David Guyatt [mailto:[EMAIL PROTECTED]] > Sent: Sunday, August 27, 2000 5:32 AM > To: Catherine Austin Fitts > Subject: Re: Toronto Start Today.... > > > Catherine; Looks like the story has been pulled from the Star server... I > get a "cannot be found" notice. > > > > ----- Original Message ----- > From: Catherine Austin Fitts <[EMAIL PROTECTED]> > To: <[EMAIL PROTECTED]>; <[EMAIL PROTECTED]>; <[EMAIL PROTECTED]> > Cc: Lois Ann Battuello <[EMAIL PROTECTED]>; <[EMAIL PROTECTED]>; David Guyatt > <[EMAIL PROTECTED]>; Rodney Jordon <[EMAIL PROTECTED]>; > William H. Jordan <[EMAIL PROTECTED]> > Sent: Saturday, August 26, 2000 5:44 PM > Subject: Toronto Start Today.... > > > > http://www.thestar.com/editorial/news/20000826NEW02b_NU-SPY26.html > > > > > > > > > > > > > > The Toronto Star News Story > > Mail > this story to > a > > friend > > > > August 26, 2000 > > > > > > > > > > > > > > RCMP admit they're > investigating `trap' > > > > Critics urge answers on spy claims > > > > Politicians fear security breach > > > > By Allan Thompson and Valerie Lawton > > Toronto Star Ottawa Bureau > > > > OTTAWA - Opposition politicians are > demanding answers > > from the federal > > government over stunning allegations that Canada's > > national security was > > compromised by foreign spies using rigged > software to > > hack into intelligence files. > > > > The RCMP confirmed yesterday a report in > The Star that > > the Mounties are > > investigating claims that software used by the RCMP > and > > Canadian Security > > Intelligence Service (CSIS) had a ``trap door'' to > allow > > American and Israeli agents to > > eavesdrop. > > > > ``We can confirm that there is indeed an > investigation > > under way,'' said Staff Sergeant > > Mike Gaudet at RCMP national headquarters. Gaudet > > admitted that probe had been > > going on ``for some time.'' > > > > Opposition critics yesterday demanded answers from > > Solicitor-General Laurence > > MacAulay, who is responsible to Parliament for both > the > > RCMP and CSIS. ``Right > > now I'm just sort of dumbfounded this could even > > happen,'' said Canadian Alliance > > critic Myron Thompson (Wild Rose), who called on > > MacAulay to come clean. > > > > ``I want to know if he can confirm or deny that > there's > > been a breach of security,'' said > > Thompson. > > > > Progressive Conservative critic Peter > MacKay called on > > MacAulay to make sure all > > the computer systems are sound. ``This sounds like > > something right out of a Le Carre > > novel,'' MacKay said. ``Yes, the RCMP has > to be given > > time to gather information and > > evidence but the first and foremost > priority has to be > > to secure the computer > > systems.'' > > > > Gaudet said the RCMP took the unusual step of > commenting > > on an ongoing > > investigation to assure Canadians that no > evidence of > a > > breach of national security > > has yet been found. > > > > ``We want to reassure Canadians that as of today we > have > > found absolutely nothing > > to indicate that national security has been > compromised > > in any way and that our > > investigation continues,'' Gaudet said. > > > > MacAulay was not available to comment, but a > > spokesperson said the minister was > > ``pleased that they have said there's no > indication of > > national security being > > compromised.'' > > > > Sources close to the current RCMP > investigation say it > > revolves around Promis, a > > case-management software program first developed to > > assist prosecutors in the > > United States Department of Justice. > > > > Meanwhile, sources said the investigation also > involves > > allegations that former > > British media tycoon Robert Maxwell - who drowned in > > 1991 - may have acted as a > > middleman in selling the rigged software to Canada. > > > > At the time of his death, Maxwell was locked in a > libel > > suit with an American journalist > > who had accused him of being an agent for Israel's > > Mossad intelligence agency. > > > > The Promis software was at the centre of a > major U.S. > > scandal a decade ago. Bill and > > Nancy Hamilton, owners of Washington-based Inslaw > Inc., > > the company that > > developed Promis, caused a sensation when > they alleged > > the U.S. government had > > stolen their software and pedalled pirated > versions to > > intelligence agencies around > > the world. > > > > A former Israeli spy also alleged the software had > been > > fitted with an electronic trap > > door to allow American and Israeli agents to spy on > > those who used the software. A > > trap door - essentially a computer bug - > can be hidden > > in either software as a tiny bit > > of rogue code, or in the computer's hardware, stored > on > > a microchip. > > > > A Star investigation found that RCMP > officers have now > > interviewed a number of > > players in the Promis affair, including an American > > computer wizard, Michael > > Riconoscuito, who claims he helped prepare Promis > > software for sale to Canada. > > > > And sources confirmed yesterday that another former > > Israeli spy, now living in New > > York, has also been interviewed by RCMP officers who > > wanted to know about the > > sale of the Promis software to Canada. > > > > > > A man who > > takes the filthy out of rich [Slinger] > > > > > > Olympic > > terror > plot > > probed > > > > > > > > > > > > > > Legal Notice > > > > Copyright* 1996-2000 Toronto Star > Newspapers Limited. > > All rights reserved. The reproduction, > > modification, distribution, transmission or > > republication of any material from > > http://www.thestar.com is strictly > prohibited without > > the prior written permission of Toronto Star > > Newspapers Limited. Contact Us > > > > > > > > > > > > Related Links > > > > > > WALKERTON'S > > > > TRAGEDY > > > > > > CONCORDE CRASH > > > > > > COLUMNISTS > > > > > > VISIONS OF > > > > TORONTO > > > > > > WEIRD NEWS > > > > > > > > > > Of interest: > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > > >
