Multi Billion Dollar Bonanza: Companies which Make Money By Keeping Americans “Terrified of Terror Attacks”

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A massive industry profits off the government-induced fear of terrorism.

By Alex Kane

Source: Alternet

Michael Hayden, the former director of the National Security Agency, has invaded America’s television sets in recent weeks to warn about Edward Snowden’s leaks and the continuing terrorist threat to America.

But what often goes unmentioned, as the Guardian’s Glenn Greenwald pointed out, is that Hayden has a financial stake in keeping Americans scared and on a permanent war footing against Islamist militants. And the private firm he works for, called the Chertoff Group, is not the only one making money by scaring Americans.

Post-9/11 America has witnessed a boom in private firms dedicated to the hyped-up threat of terrorism. The drive to privatize America’s national security apparatus accelerated in the aftermath of the terrorist attacks, and it’s gotten to the point where 70 percent of the national intelligence budget is now spent on private contractors, as author Tim Shorrock reported. The private intelligence contractors have profited to the tune of at least $6 billion a year. In 2010, the Washington Post revealed that there are 1,931 private firms across the country dedicated to fighting terrorism.

What it all adds up to is a massive industry profiting off government-induced fear of terrorism, even though Americans are more likely to be killed by a car crash or their own furniture than a terror attack.

Here are five private companies cashing in on keeping you afraid.

1. The Chertoff Group

On August 11, former NSA head Michael Hayden, the man at the center of the Bush administration’s 2005 surveillance scandal, was defending his former agency on CBS News in the wake of the latest NSA spying scandal. Commenting on President Obama’s half-hearted promises to reform some NSA practices, Hayden told host Bob Schieffer that “the President is trying to take some steps to make the American people more comfortable about what it is we’re doing. That’s going to be hard because, frankly, Bob, some steps to make Americans more comfortable will actually make Americans less safe.”

Former Homeland Security chief Michael Chertoff had a similar message when he appeared on ABC News August 4. Speaking about the purported threat from an Al Qaeda affiliate in Yemen that led to the closure of 19 U.S. embassies, Chertoff said that “the collection of this warning information [about Al Qaeda] came from the kinds of programs we’ve been discussing about, the ability to capture communications overseas.”

CBS and ABC did not see fit to inform viewers that both Hayden and Chertoff are employees of the Chertoff Group, a private firm created in 2009 that companies hire to consult on best practices for security and combatting terrorism. Some of the companies the firm advises go on to win government contracts. Chertoff is the founder and chairman of the group, while Hayden serves as a principal. So they profit off a war on terror they say is crucial to keeping Americans safe.

Though it’s unclear how much in total exactly the firm makes, there are some known numbers. After the failed attempt in 2010 to blow up an airliner on Christmas Day with a bomb hidden in underwear, Chertoff pushed for better airport security procedures. One of the suggestions Chertoff made was for the Transportation Security Agency to use full-body scanners like the ones Rapiscan, one of the Chertoff Group’s clients, made. And sure enough, after the Christmas Day plot, the TSA ordered 300 Rapiscan machines. The Huffington Post reported that Rapiscan made $118 million from the government between 2009-2010.

2. Booz Allen Hamilton

This private intelligence contractor has become a household name in the wake of the NSA scandal. Edward Snowden, the man responsible for leaking secret documents that exposed the breadth of NSA surveillance, was working for Booz Allen when he downloaded the documents he handed off to media outlets. As the New York Times reported in June, the company parlays its technology expertise for intelligence uses into massive government contracts. Thousands of employees of the company provide services to the NSA, like analyzing the massive amounts of data the government agency collects every day. The company is also the shining symbol of the government-private security complex’s revolving door: its vice president is the former director of national intelligence, while the current director of national intelligence is a former employee of Booz Allen.

Despite the Snowden security breach, Booz Allen continues to work with the government. And they’re making a lot of money from the U.S. In the last fiscal year, the company made $1.3 billion from working in U.S. intelligence. In total, Booz Allen Hamiltion made over $5 billion last fiscal year. And the cash keeps coming: in January, the company announced that it had won a contract with the Defense Department to provide intelligence services. The amount of money it could make from the deal is up to $5.6 billion.

And like Hayden and Chertoff, Booz Allen’s vice president Mike McConnell has publicly hyped up the threat of terrorism to blast Snowden’s leaks. McConnell told a government contracting conference in July 2013 that Snowden’s leaks have done “irrevocable damage” to the U.S.’s ability to stop terrorism. “It’s going to inhibit our ability to understand nuclear activity in North Korea, what’s going on in Syria, what might be happening with the Taliban in Afghanistan,” said McConnell.

3. Science Applications International Corporation

Sometimes referred to as “NSA West” because so many former NSA employees go on to work for the formerly California-based Science Applications International Corporation (SAIC), this firm makes a ton of cash off government contracts. And they do so by hawking their expertise in combatting the terrorist threat.

Browse through SAIC’s website and you’re constantly greeted with the words “terrorist threat” and information on how the SAIC can help the government and others battle it. SAIC developed a “Terrorism Protection Manual” for Florida law enforcement that was developed to fight “today’s national terrorist threat and implement recommended security best practices.” They boast of their “experience meeting the terrorism incident response training needs of a wide variety of customers, from training for a national Weapons of Mass Destruction (WMD) scenario, applicable at agency response levels, to lesser levels of incidents affecting a city, a military installation or a special facility.”

Back when John P. Jumper, the current CEO of SAIC, was an Air Force general, he said the threat of terrorism is “greater than Nazism, greater than communism. This threat that we have of terrorist zealots is the most dangerous because these are people who care nothing about life. They care nothing about our lives, for sure, and they care nothing about their own lives.” And Larry Prior, a U.S. intelligence veteran who used to run the company’s Intelligence and Security Group, said in an internal newsletter that “the future of the nation rests on their backs,” referring to employees in his group.

SAIC is an immensely lucrative and large company. It boasts 42,000 employees—20,000 of whom hold U.S. government security clearances. It is the NSA’s largest contractor, according to CorpWatch, and is deeply involved in the NSA’s collection of intelligence. Last year it reported a net income of $525 million.

4. Center for Counterintelligence and Security Studies 

U.S. intelligence agencies aren’t the only sectors of government where the private sector has cashed in on the fear of terrorism. The post-9/11 world has seen the blossoming of a cottage industry of self-styled “experts” on Islam from private companies that market their supposedly ironclad analysis of the threat from Islamists to other federal agencies and state and local law enforcement. These companies have profited from law enforcement taking part in the “war on terror.”

Through Homeland Security grant programs like the State Homeland Security Program and the Urban Areas Security Initiative, the federal government has doled out over billions of dollars to these private companies to provide Islamophobic training. One of these companies is called the Center for Counterintelligence and Security Studies.

Based in Virginia, the center “posits radical Islam as a new global ideological menace on the order of the old communist threat from the Soviet Union,” as Political Research Associates (PRA) noted in a 2011 report on private firms doing counter-terror training. Staff members include former FBI, CIA and Defense Department personnel.

Their claim to fame is providing education and training to members of the U.S. national security community—including law enforcement agencies, according to their website. They say they have trained over 67,000 people over the past decade.

It’s unclear exactly how much this firm makes per year. But according to the PRA report, a five-day course for government employees on the “Global Jihadist Threat Doctrine” costs $39,280. The firm also lists the costs of individual courses on their website. For a 30-person class titled “Dying to Kill Us: Understanding the Mindset of Suicide Operations,” the cost is $7,856. For a three-day course for 30 people on “Informant Development for Law Enforcement to FighTerrorism,” the cost is $23,568.

The training pushes anti-Muslim ideology. On the section of their website where they list feedback from participants of the courses, one wrote: “An eye-opener. Especially how many Muslim Brotherhood front organizations there are and that the government doesn’t get it.”

5. Security Solutions International

Security Solutions International is yet another private firm hawking anti-Muslim training to law enforcement. This Miami-based company founded in 2004 uses its Israeli security connections to boost its standing in the market. They use Israeli security trainers in their courses and their president, Henry Morgenstern, is a dual Israeli-U.S. citizen who says he “developed excellent high level contacts with the Security Establishment [in Israel], making SSI the premiere training company for counter-terror related subjects.”

The company has trained over 700 law enforcement agencies since 2004. Officials from law enforcement agencies like the Massachusetts Bay Transportation Authority and the Department of Homeland Security have participated in the conferences they put on for profit. While SSI claims that they don’t cast aspersions on the whole of Islam, an examination of their trainings, conferences and the speakers they use indicate otherwise.

At a 2009 conference sponsored by Police magazine, an SSI instructor who is the company’s “expert” on Islam used a video that showed a terrorist beheading a hostage. After the course was met with criticism, the company’s CEO said “their religion got linked to terrorism a long time ago.”

The conferences they hold are usually well-attended, and this year SSI is putting on a conference in Orlando, Florida for three days. The cost for each attendee is $400. The keynote speaker this year is Steve Emerson, a well-known member of what’s been termed the “Islamophobia industry.” SSI also makes money off its Counter Terrorist magazine. A yearly subscription is $35, and the company says it has 15,000 subscribers.

Editor’s note: Dishonorable mentions that should be added to the list include corporate news media, all crony contractors including Boeing, Lockheed Martin, Halliburton, Bechtel, etc., Neocon Pro-war Activists, and the SITE Intelligence Group.

Probing the SITE Intelligence Group

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By James F. Tracy

Source: The Memory Hole

Since mid-August 2014 major news organizations have conveyed videos allegedly found online by the SITE Intelligence Group. Unsurprisingly the same media have failed to closely interrogate what the private company actually is and whether the material it promotes should be accepted as genuine.

The Search for International Terrorist Entities Intelligence Group was co-founded by Rita Katz in 2001. Katz is an Iraqi-born Jew. Her father, an Israeli spy, was executed by Iraqis as a result of his intelligence activities.

In 2003 Katz authored a book, Terrorist Hunter: The Extraordinary Story of a Woman Who Went Undercover to Infiltrate the Radical Islamic Groups Operating in America, which she published using the pseudonym, “Anonymous.”

In the book Katz explains how she took on the trappings of a Muslim woman to infiltrate the meetings of radical Muslim terrorists. The plot is unlikely, especially when one considers that such secret fundamentalist gatherings are almost always segregated along gender lines and no woman, however elaborate her costume, would be granted entry without her identity being firmly established.

SITE Intelligence Group consists of Katz and two “senior advisers,” one of whom is Bruce Hoffman, the Corporate Chair in Counterterrorism and Counterinsurgency at the RAND Corporation and former director of the RAND’s Washington DC office.

The SITE Intelligence Group “constantly monitors the Internet and traditional media for material and propaganda released by jihadist groups and their supporters,” the company’s website announces. “Once obtained, SITE immediately translates the material and provides the intelligence along with a contextual analysis explaining the source of the material and its importance to our subscribers.”[1]

In 2003 and 2004, though claiming to be a 501c3 non-profit, SITE received more than $500,000 from the US government. Also in the early 2000s Katz received $150,000 from the FBI for consulting services.[2] A Guidestar search for nonprofits yields no recent records for SITE, suggesting how it has abandoned its non-profit status and now relies on corporate and individual subscriptions for revenue. In 2005 the private mercenary contractor Blackwater hailed SITE as “an invaluable resource.”[3]

The majority of “jihadist groups” operate one or more media outlets that produce and publish  “the group’s multimedia, and in some cases, communiqués and magazines,” SITE explains on its website. “These media units involve production teams and correspondents who report directly from the battlefield, and craft propaganda to indoctrinate and recruit new fighters into the group’s ranks.” SITE provides no direct links to the jihadist groups’ websites or multimedia productions from its own platform.[4]

Katz describes SITE as geared toward international Islamic jihad. In fact, it performs an international function akin to what a Southern Poverty Law Center or Anti-Defamation League do domestically–ferreting out and publicizing terrorist and “extremist” threats. “[W]e at SITE for over a decade monitor, search, and study the jihadists online,” she explains.

We have been studying and monitoring the jihadists online, which also as they get more sophisticated, we follow their techniques and study them. And based on that, we could predict where they will be uploading their video.

After all, we have to remember that much of this propaganda is being posted online. Their releases are released online [sic]. So they have to be able to use certain locations to upload their releases before they are published.[5]

Though routinely overlooked in the flurry of front-page coverage corporate media have allotted the three beheading videos–the most recent of which featured British aid worker David Cawthorne Haines–it is common knowledge that SITE uncannily secures terrorist statements and videos well before the US’s wide array of lavishly-funded intelligence services.

For example, as the Washington Post reported in 2007,

[a] small private intelligence company that monitors Islamic terrorist groups obtained a new Osama bin Laden video ahead of its official release last month, and around 10 a.m. on Sept. 7 … It gave two senior officials access on the condition that the officials not reveal they had it until the al-Qaeda release. Within 20 minutes, a range of intelligence agencies had begun downloading it from the company’s Web site. By midafternoon that day, the video and a transcript of its audio track had been leaked from within the Bush administration to cable television news and broadcast worldwide.[6]

The video later proved to be fraudulent.

With the above in mind, one may ask, If parties within a US presidential administration or the State Department sought to bypass the potential scrutiny of a wide-ranging intelligence community concerning such matters, while simultaneously providing itself with the means to effectively propagandize the American public toward a broader end, what better way than to contract the services of an entity such as SITE?

If there is some merit in the above appraisal, the arrangement is now being pushed to an extreme by the Obama administration to pave the road toward a long-sought goal: war with Syria’s Bashar Al Assad regime. Indeed, services such as SITE’s are a potent and valuable means for moving public opinion, as they have done in recent weeks concerning military action against the Islamic State. Along these lines, a decade ago both John Kerry and George W. Bush credited the latter’s re-election to a surreptitious appearance by Osama bin Laden via video tape several days before the vote.[7]

Playing a role similar to SITE, IntelCenter acts as an intermediary between Al-Qaeda’s supposed media arm, As-Sahab, and major media. In other words, “they acquire the tapes and pass them on to the press, and have occasionally even predicted when tapes would be released beforehand,” Paul Joseph Watson reports.

“IntelCenter is run by Ben Venzke, who used to be the director of intelligence at a company called IDEFENSE, which is a Verisign company. IDEFENSE is a web security company that monitors intelligence from the Middle East conflicts and focuses on cyber threats among other things. It is also heavily populated with long serving ex-military intelligence officials.[8]

As noted, news outlets seldom see fit to closely analyze SITE or Katz concerning their research and function as conduits for terrorist propaganda. A LexisNexis search for SITE Intelligence in the article content of US newspapers and major world publications over the past two years produces 317 items—an admittedly low figure given the prominence of SITE’s recent disclosures. Yet a similar search for “Steven Sotloff” alone yields over 1,000 newspaper stories and 600 broadcast transcripts, suggesting the sensationalistic usage and effect of SITE’s data and how neither SITE nor Katz are called upon to explain their specific methods and findings.

Indeed, a similar search for “SITE Intelligence” and “Rita Katz” yields only 26 entries over a two year period. Of these, 14 appear in the Washington Post, a publication with well-established links to US intelligence. Four New York Times articles feature the combined entities.

In a CNN on the heels of the Sotloff beheading, Katz explains how again SITE curiously surpassed the combined capacities of the entire US intelligence community in securing the Sotloff footage.

“The video shows the beheading of Steven Sotloff,” Katz cautiously begins after being queried on the document’s authenticity.

The location from where the video was obtained from is the location where ISIS usually uploads their original videos to [sic]. The video shows a clear message from ISIS that follows the same message that it had before. And in fact within a short time after our release, ISIS’ account on social media indicated that within a short time they would be releasing the video, only we actually had that video beforehand and were able to beat them with the release.

This unusual statement alongside SITE’s remarkable abilities, in addition to the fact that it is a past government contractor that has been caught spreading dubious information, should put news outlets on guard concerning virtually anything the organization produces.

Undoubtedly this is a great deal to ask from a news media that all too frequently participate in orienting public opinion toward war, a feat it has once again accomplished with the aid of SITE.

The interests and alliances of the transnational entities owning such media make them poised to profit from the very geopolitical designs drawn up by SITE’s corporate and government clients–the most important of which may be those seeking to broaden Middle Eastern conflict. No doubt, the widescale acceptance of such propaganda is also the result of the vastly diminished critical capacities of the broader public, now several decades in the making.

Notes

[1] “Services,” SITE Intelligence Group, , accessed September 15, 2014,

[2] Berni McCoy, “So, a ‘Charitable Organization’ Released the bin Laden Video,” Democratic Underground, September 10, 2007, http://journals.democraticunderground.com/berni_

[3] “SITE Institute,” Sourcewatch.org, Center for Media and Democracy, n.d.

[4] “Media Groups,” SITE Intelligence Group, n.d., accessed September 15, 2014.

[5] Karl Penhaul, Pamela Brown, Alisyn Camerota, Don Lemon, Paul Cruickshank, “Joan Rivers on Life Support; Chilling Words From ISIS Terrorist; How to Fight Radical Recruitment” (transcript), CNN, September 2, 2014.

[6] Joby Warrick, “Leak Severed a Link to Al Qaeda Secrets,” Washington Post, October 9, 2007.

[7] Paul Joseph Watson, “Another Dubious Osama Tape Appears When the Neo-Cons Need It Most,” Prisonplanet.com, July 16, 2007.

[8] Ibid. See also, Kurt Nimmo, “Sotloff Video Found by Group Responsible For Releasing Fake Osama Bin Laden Video,” Infowars.com, September 3, 2014.