http://www.newstatesman.com/business/2008/08/private-security-company

The new spies

When the Cold War ended, it didn't spell curtains for the secret agent. 
Private espionage is a booming industry and environmental protest groups 
are its prime target

As you hunker down for the last few days of the Camp for Climate Action, 
discussing how to force your way into Kingsnorth power station in an 
attempt to prevent the construction of a new coal facility, cast your 
eyes around your fellow protesters. Do they look entirely bona fide to 
you? And don't look for the old-school special branch officers - Kent 
Police are a tiny force. It's the corporate spies hired by private 
companies you need to watch out for.

According to the private espionage industry itself, roughly one in four 
of your comrades is on a multinational's payroll.

Russell Corn, managing director of Diligence, one of a growing number of 
"corporate intelligence agencies", with offices high in the Canary Wharf 
glass tower, says private spies make up 25 per cent of every activist 
camp. "If you stuck an intercept up near one of those camps, you 
wouldn't believe the amount of outgoing calls after every meeting 
saying, 'Tomorrow we're going to cut the fence'," he smiles. "Easily one 
in four of the people there are taking the corporate shilling."

In April this year, for instance, the anti-aviation campaign network 
Plane Stupid, one of the main organisers of the eco-camp built to 
protest against the expansion of Heathrow Airport, announced that one of 
its activists, Ken Tobias, was actually called Toby Kendall, was working 
for a corporate espionage firm called C2i, and had been leaking 
information about the group to paying clients and the media. He had been 
hired by an as yet unknown private company to provide information and 
disrupt the group's campaigning.

When Tobias first turned up at Plane Stupid's meetings in July 2007, he 
seemed a committed former Oxford student dedicated to reducing aircraft 
emissions. The group gradually became suspicious because he showed up 
early at meetings, constantly pushed for increasingly drama tic direct 
action and - the ultimate giveaway - dressed a little too well for an 
ecowarrior. When they showed his picture around Oxford they found an old 
college pal who identified him as Toby Kendall. A quick Google search 
revealed his Bebo page with a link to a corporate networking site, where 
his job as an "analyst" at C2i International, working in "security and 
investigations", was pasted in full public view.

Just a month earlier, a woman called Cara Schaffer had contacted the 
Student/Farmworker Alliance, an idealistic bunch of American college 
students who lobby fast-food companies to help migrant workers in 
Florida who harvest tomatoes. Like the cockle-pickers of Morecambe Bay, 
many of these workers are smuggled into the US by gangs which then take 
their passports and force them to work without pay to clear often 
fictitious debts to regain their papers.

Digging up dirt

Again, Schaffer's excessive eagerness aroused suspicion, and again, the 
internet revealed her true identity. She owned Diplomatic Tactical 
Services, a private espionage firm which had pre viously hired as a 
subcontractor one Guillermo Zara bozo, today facing murder charges in 
Miami for his role in allegedly executing four crew members of a 
chartered fishing boat, an allegation he denies. Schaffer turned out to 
be working for Burger King - the home, perhaps appropriately, of the 
Whopper.

The cute thing about these two bozos is that they got caught pretty 
early on, but that was because they were young and had no background in 
espionage.

The real market is in proper, old-school spies who are suddenly entering 
the private sector. For professional spooks, the 1990s were no fun at 
all. The Cold War was over, defence spending was down and a detailed 
knowledge of cold-drop techniques in central Berlin was useless to 
governments looking for Arabic speakers who knew the Quran.

 From New York and London to Moscow and Beijing, any decent-sized 
corporation can now hire former agents from the CIA, FBI, MI5, MI6 and 
the KGB. The ex-spooks are selling their old skills and contacts to 
multinationals, hedge funds and oligarchs, digging up dirt on 
competitors, uncovering the secrets of boardroom rivals and exposing 
investment targets. They are also keeping tabs on journalists, 
protesters and even potential employees.

"MI5 and MI6 in particular have always guided ex-employees into security 
companies," explains Annie Machon, the former MI5 agent who helped David 
Shayler blow the whistle on the security services back in 1997. "It's 
always useful to them to have friends they can tap for info or recruit 
for a job that requires plausible deniability. The big change in recent 
years has been the huge growth in these companies. Where before it was a 
handful of private detective agencies, now there are hundreds of 
multinational security organisations, which operate with less regulation 
than the spooks themselves," she says.

Corn's company Diligence, for instance, was set up in 2000 by Nick Day, 
a former MI5 spy, and an ex-CIA agent, Mike Baker. Before long, the duo 
had built up a roster of high-paying clients including Enron, oil and 
pharmaceutical companies, as well as law firms and hedge funds. In 2001, 
a small investment by the Washington lobbying company Barbour Griffith & 
Rogers propelled their growth. However, BGR and Baker sold their stakes 
in 2005, shortly before a scandal shook Diligence. KPMG, the global 
professional services firm, accused Diligence staff of impersonating 
British spies to gain information on a corporate takeover for a Russian 
telecoms client called Alfa Group. Diligence settled the lawsuit without 
admitting liability.

Since then, it has recruited the former Conservative Party leader 
Michael Howard as chairman of its European operations. And it is that 
sort of respectability and lobbying power that big players are after. In 
2007, the parent company of the US private military firm Blackwater, 
which hit the headlines for gunning down Iraqi civilians in Baghdad last 
September, entered this market through Total Intelligence Solutions 
(TIS), a new CIA-type private operation, to provide intelligence 
services to commercial clients.

Discreet investigations

Blackwater's vice-chairman, J Cofer Black, who runs TIS, spent three 
decades in the CIA and the state department, becoming director of the 
Counterterrorist Centre and co-ordinator for counter terrorism, a job 
with ambassadorial rank. He describes the new company as bringing "the 
intelligence-gathering methodology and analytical skills traditionally 
honed by CIA operatives directly to the boardroom. With a service like 
this, CEOs and their security personnel will be able to respond to 
threats quickly and confidently - whether it's determining which city is 
safest to open a new plant in or working to keep employees out of harm's 
way after a terrorist attack."

Black also says TIS will operate a "24/7 intelligence fusion and warning 
centre" that will monitor civil unrest, terrorism, economic stability, 
environmental and health concerns, and information technology security 
around the world.

The established firms already operating in this area include Kroll, 
Aegis, Garda, Control Risks, GPW and Hakluyt & Co. More firms are 
opening every day and there is little regulation of the sector.

Hakluyt & Co was founded in 1995 by former British MI6 officers, with a 
reputation for discreet and effective investigations. The company 
butler, a former gurkha, greets visitors to its London HQ, a town house 
off Park Lane. In winter, meetings can be conducted beside the fire. 
Computers are rarely in sight. Hakluyt's advisory board has become an 
exit chamber for captains of industry and former government officials. 
Members have included Sir Rod Eddington, a former BA CEO, and Sir 
Christopher Gent, former chief executive of Vodafone.

"It is hard to work well for an oil company without knowing who all the 
key decision-makers in a government are and having the right contacts to 
reach them," explains Stéphane Gérardin, who runs the French private 
security company Géos. "We have an intelligence section where we employ 
some investigative journalists, people from the finance sector, from 
equity banks and some from security backgrounds.

"It is an important part of image protection for our clients as well. We 
have our own tracking and monitoring centre, with analysts doing risk 
mapping and preparing our clients for every potential problem. It could 
be about alerting them to local sensitivities. Or, in this globalised 
internet age, it can be a group of students in Cambridge who have 
launched a protest website, who may be sending out a petition.

"So we need to be able to understand and prepare our own propaganda to 
counter such attacks. This is work we do to protect our clients."

Trusted friend

Like the state security services, which ended up running Class War in 
the 1990s after a hugely successful penetration, these spies work to 
become reliable members of any protest movement. In April 2007, the 
Campaign Against Arms Trade called in the police after court documents 
showed that the weapons manufacturer BAE Systems had paid a private 
agency to spy on the peace group.

BAE admitted that it had paid £2,500 a month to LigneDeux Associates, 
whose agent Paul Mercer - accepted as a trusted member of the campaign - 
passed information, including a legally privileged document, to BAE's 
director of security, Mike McGinty.

Unlike the security services, however, these services don't bother with 
penetrating the far left or anti-fascist groups. Their clients are only 
interested in the protest movements that threaten corporations. And as 
that is the nature of much protest in these times, it is a wide field, 
but with a particular impact on environmental groups.

At any of this summer's green protests the corporate spies will be 
there, out-of-work MI5 agents tapping green activists' mobile phones to 
sell the information on to interested companies.

Russell Corn knows of incidents where a spook at a meeting has suggested 
a high-street bank as a target, then left the meeting to phone the 
officers of said bank, telling them that he has penetrated an activist 
camp planning an attack and offering to sell the details. Corn has no 
time for such behaviour, however.

"The thing about a really good private spy," he tells me, "is that 
you'll never know he's around and he'll never get caught.

"The fact you can't see them . . . it means nothing at all."

"War plc: the Rise of the New Corporate Mercenary" by Stephen Armstrong 
is published by Faber & Faber (£14.99)

Spooks for hire

Alyssa McDonald offers tips on how to protect your business

Unsure a potential employee is the person for the job?

Try Géos's "violence assessment and prevention" service. "Security 
Experts and Board-Certified Forensic Psychologists" will help keep 
potential troublemakers out of your company. Previous clients include 
the CIA, the FBI and various Fortune 500 companies.

Worried your business may be undercut?

"Commercial and competitive intelligence" services from Diligence can 
help. These will identify potential rivals, their respective strengths 
and weaknesses, their allies in commerce and government; they will 
assess their strategies, vet potential suppliers and "identify and 
counteract any rival effort to weaken [the client's] reputation".

Business at risk from radical activists?

Then you need "close protection analysis" from Diligence. A "prominent 
European scientific research group" suspected of animal testing used the 
service to provide early warning of possible attacks by animal rights 
activists. Diligence identified factions within the activist 
organisation with differing opinions about the use of violence in their 
campaigns. Playing on this friction, Diligence learned about upcoming 
attacks and warned the research group.

Concerned that your flight might not go smoothly?

Géos has an online database tracking air carriers' financial position, 
maintenance practices and history of accidents, as well as their pilots' 
"training, background and experience". Also available for helicopter 
services.

Need to find out who your colleagues have been emailing?

Kroll's "computer forensics" can help. They can uncover lost or hidden 
files, break encrypted files and "re-create events from electronic 
footprints". Kroll will work onsite if necessary, "even in the middle of 
the night, so that users are unaware" of what is happening to their 
computers.

Need to make a sharp exit?

Why not sign up for Géos's "emergency evacuation support" system? 
Dangers that you may face will be mapped by the company's "intelligence 
division and global monitoring programme". When security conditions 
"escalate to a potential crisis point", you can be removed from whatever 
situation you are in.

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