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Profile: Herbert Stern
Herbert Stern was a participant or observer in the following events:
Qwest logo. [Source: Qwest]Former Qwest CEO Joe Nacchio, who refused to accede to Bush administration demands that he participate in the warrantless wiretapping of US citizens (see February 2001 and Beyond), says in court documents released today that the NSA retaliated against Qwest by withdrawing a large government contract from the firm. Nacchio was convicted on 19 counts of insider trading, and was unable to mount the defense he wanted because the information he tried to present to the court was classified. He is appealing the verdict. The documents released today make up part of that defense. The documents indicate that the NSA was discussing a secret and possibly illegal surveillance operation against Americans as far back as February 2001—months before the 9/11 attacks, which Bush officials have used to justify wiretapping Americans without court warrants. Although the legal filings are heavily redacted for public consumption, they reveal, among other things, a February 27, 2001 meeting between Nacchio and NSA officials to discuss an infrastructure project and another, classified topic that may be regarding the NSA’s illegal wiretapping of US citizens (see February 27, 2001). After the discussion, in which Nacchio refuses to participate in the operation, the NSA withdrew its “Groundbreaker” contract from consideration for Qwest. Nacchio and an associate “went into that meeting expecting to talk about the ‘Groundbreaker’ project and came out of the meeting with optimism about the prospect for 2001 revenues from NSA,” Stern writes, “[T]he Court has prohibited Mr. Nacchio from eliciting testimony regarding what also occurred at that meeting, [redacted].… The Court has also refused to allow Mr. Nacchio to demonstrate that the agency retaliated for this refusal by denying the Groundbreaker and perhaps other work to Qwest.” Nacchio was convicted for not warning investors that Qwest’s stock would drop before he sold off his own stock; Nacchio contends that he believed the secret NSA contracts would come through and bolster his former firm’s stock price. [Raw Story, 10/12/2007; Marketwatch, 10/13/2007]
Qwest's No-Bid Contracts - On May 25, 2007, Judge Edward Nottingham wrote that, according to Nacchio, “Qwest entered into two classified contracts valued at hundreds of millions of dollars, without a competitive bidding process and that in 2000 and 2001, he participated in discussion with high-ranking [redacted] representatives concerning the possibility of awarding additional contracts of a similar nature.… Those discussions led him to believe that [redacted] would award Qwest contracts valued at amounts that would more than offset the negative warnings he was receiving about Qwest’s financial prospects.” [Washington Post, 10/13/2007]
'Quid Pro Quo' - The Electronic Frontier Foundation’s Hugh D’Andrade writes, “It appears that the NSA’s requests for cooperation came with an implied quid pro quo—give us your customer’s calling records and we will reward you with generous contracts worth millions. It is beginning to look like the telecoms were motivated by something other than ‘patriotism’ after all.” [Electronic Frontier Foundation, 10/17/2007]
'Never-Ending Carousel' - And Salon’s Glenn Greenwald, himself a former Constitutional law and civil rights litigator, writes, “The cooperation between the various military/intelligence branches of the federal government—particularly the Pentagon and the NSA—and the private telecommunications corporations is extraordinary and endless. They really are, in every respect, virtually indistinguishable. The federal government has its hands dug deeply into the entire ostensibly ‘private’ telecommunications infrastructure and, in return, the nation’s telecoms are recipients of enormous amounts of revenues by virtue of turning themselves into branches of the federal government. There simply is no separation between these corporations and the military and intelligence agencies of the federal government. They meet and plan and agree so frequently, and at such high levels, that they practically form a consortium.” Greenwald calls it “a never-ending carousel of multi-billion dollar transactions—pursuant to which enormous sums of taxpayer money are transferred to these telecoms in exchange for the telecoms serving as obedient divisions of the government, giving them unfettered access to all of the data and content of the communications of American citizens.” [Salon, 10/15/2007]
Entity Tags: National Security Agency, Qwest, Joe Nacchio, US Department of Defense, Hugh D’Andrade, Herbert Stern, Glenn Greenwald, Bush administration (43), American Civil Liberties Union, Electronic Frontier Foundation, Edward Nottingham, AT&T
Timeline Tags: Civil Liberties
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