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Inslaw and PROMIS

Project: US Civil Liberties
Open-Content project managed by Paul, KJF, mtuck, paxvector

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An application known as PROMIS, the Prosecutor’s Management Information System, is developed. [Wired News, 3/1993] It is designed to be used to keep track of criminal investigations through a powerful search engine that can quickly access all data items stored about a case. [Salon, 7/23/2008] William Hamilton, one of the application’s developers, will describe what it can be used to do: “Every use of PROMIS in the court system is tracking people. You can rotate the file by case, defendant, arresting officer, judge, defence lawyer, and it’s tracking all the names of all the people in all the cases.” Wired magazine will describe its significance: “What this means is that PROMIS can provide a complete rundown of all federal cases in which a lawyer has been involved, or all the cases in which a lawyer has represented defendant A, or all the cases in which a lawyer has represented white-collar criminals, at which stage in each of the cases the lawyer agreed to a plea bargain, and so on. Based on this information, PROMIS can help a prosecutor determine when a plea will be taken in a particular type of case.” In addition, PROMIS can integrate several databases without requiring any reprogramming, meaning it can “turn blind data into information.” PROMIS is developed by a private business entity that will later become the company Inslaw, Inc. Although there will later be a series of disputes over the application’s use by the US government and others, this version of PROMIS is funded by a Law Enforcement Assistance Administration grant and is therefore in the public domain. [Wired News, 3/1993]

Entity Tags: Inslaw, Inc., William Hamilton

Category Tags: Other Events

C. Madison “Brick” Brewer, the general counsel of the Institute for Law and Social Research, leaves his position. The circumstances of his departure from the institute, which will later be transformed into the company Inslaw, will later be disputed. The departure is significant because Brewer will later be hired by the Justice Department to manage a contract with Inslaw (see April 1982), and will adopt a combative approach to his former employer (see April 14, 1982 and April 19, 1982).
Hamilton's Account - Inslaw owner William Hamilton will later say that Brewer is asked to leave because he is unable to perform his duties, but is given sufficient time to find another job instead of being forced out. Inslaw vice president John Gizarelli will corroborate Hamilton’s account, telling the House Judiciary Committee under oath that Hamilton told him Brewer had been asked to resign.
Contradictory Statements by Brewer - Brewer will give different accounts of his departure. He will tell investigators from the Justice Department’s Office of Professional Responsibility (OPR): “At no time did he [Hamilton] ever say you are fired and at no time did he [Hamilton] ever indicate great dissatisfaction with my performance.… I never felt that I was discharged, let alone wrongfully discharged.” He will repeat this line to investigators from the House committee: “I never thought that he asked me to leave. It has always been my understanding that I was not asked to leave. I have never viewed my departure from the institute as either being a discharge, or forced.” However, another statement he will make puts a different slant on this; he tells the OPR: “[I]t has been my view that Mr. Hamilton obviously wanted me gone. He had been sending these signals, if not directly indicating a job dissatisfaction, since April, and it was now February, almost one year later, and I was still extricating myself.” In addition, Brewer will say in a court appearance: “On one occasion Mr. Hamilton came and said to me, ‘can you go to lunch?’ I explained that I couldn’t. And he said, ‘Well, what I have to say over lunch I can say right now. I think you ought to find [an] alternative—that you ought to leave the Institute.’”
Impact - The committee will comment, “The circumstances surrounding Mr. Brewer’s departure from the institute appear to have had a major influence over his views about Inslaw and its president, Mr. Hamilton.” Gizarelli will say that he had occasional contact with Brewer before his departure, and: “[H]e thought that Mr. Hamilton was insane. And I think he meant that literally. He did make comments about his rationality, his sanity, thought he wasn’t capable of leading an organization. The tenor of his remarks were to me very startling.” [US Congress, 9/10/1992]

Entity Tags: William Hamilton, Inslaw, Inc., House Judiciary Committee, John Gizarelli, C. Madison “Brick” Brewer

Category Tags: Origin of Dispute

Lieutenant Colonel Oliver North uses a sophisticated brand of software known as PROMIS to track potential security threats in the United States. Intelligence officials will later tell Wired magazine that North has a command center connected to a larger Justice Department facility utilizing the software. “According to both a contractor who helped design the center and information disclosed during the Iran-Contra hearings,” North maintains a “similar, but smaller, White House operations room… connected by computer link to the [Justice Department]‘s command center.” According to Wired, North uses computers in his operations center to track “dissidents and potential troublemakers within the United States as part of a domestic emergency preparedness program.” North is assigned to work with FEMA on the secretive Continuity of Government (COG) program from 1982 to 1984 (see 1982-1984). Wired will later report, “Using PROMIS, sources point out, North could have drawn up lists of anyone ever arrested for a political protest, for example, or anyone who had ever refused to pay their taxes.” Compared to PROMIS, Wired notes, “Richard Nixon’s enemies list or Sen. Joe McCarthy’s blacklist look downright crude.” [Wired News, 3/1993]

Entity Tags: US Department of Justice, Oliver North

Timeline Tags: Civil Liberties

Category Tags: Use Outside Justice Department

As a part of the plan to ensure Continuity of Government (COG) in the event of a Soviet nuclear strike or other emergency, the US government begins to maintain a database of people it considers unfriendly. A senior government official who has served with high-level security clearances in five administrations will say it is “a database of Americans, who, often for the slightest and most trivial reason, are considered unfriendly, and who, in a time of panic, might be incarcerated. The database can identify and locate perceived ‘enemies of the state’ almost instantaneously.” He and other sources say that the database is sometimes referred to by the code name Main Core, and one says it was set up with help from the Defense Intelligence Agency.
Alleged Link to PROMIS - The database will be said to be linked to a system known as PROMIS, the Prosecutor’s Management Information System, over which the US government conducts a long-lasting series of disputes with the private company Inslaw. The exact connection between Main Core and PROMIS is uncertain, but one option is that code from PROMIS is used to create Main Core. PROMIS is most noted for its ability to combine data from different databases, and an intelligence expert briefed by high-level contacts in the Department of Homeland Security will say that Main Core “is less a mega-database than a way to search numerous other agency databases at the same time.”
Definition of National Emergency - It is unclear what kind of national emergency could trigger such detention. Executive orders issued over the next three decades define it as a “natural disaster, military attack, [or] technological or other emergency,” while Defense Department documents include eventualities like “riots, acts of violence, insurrections, unlawful obstructions or assemblages, [and] disorder prejudicial to public law and order.” According to one news report, even “national opposition to US military invasion abroad” could be a trigger.
How Does It Work? - A former military operative regularly briefed by members of the intelligence community will be told that the program utilizes software that makes predictive judgments of targets’ behavior and tracks their circle of associations using “social network analysis” and artificial intelligence modeling tools. “The more data you have on a particular target, the better [the software] can predict what the target will do, where the target will go, who it will turn to for help,” he will say. “Main Core is the table of contents for all the illegal information that the US government has [compiled] on specific targets.”
Origin of Data - In 2008, sources will reportedly tell Radar magazine that a “host of publicly disclosed programs… now supply data to Main Core,” in particular the NSA’s domestic surveillance programs initiated after 9/11. [Radar, 5/2008]

Entity Tags: Defense Intelligence Agency, Inslaw, Inc.

Timeline Tags: Civil Liberties

Category Tags: Use Outside Justice Department

Laurence McWhorter, director of the Executive Office for US Attorneys, tells one of his subordinates, “We’re out to get Inslaw.” Inslaw developed the PROMIS database and search application (see Mid-1970s) and is soon to become embroiled in a dispute with the Justice Department over it. Mallgrave will later tell Wired magazine: “We were just in his office for what I call a B.S. type discussion. I remember it was a bright sunny morning.… [McWhorter] asked me if I would be interested in assuming the position of assistant director for data processing… basically working with Inslaw. I told him… I just had no interest in that job. And then, almost as an afterthought, he said ‘We’re out to get Inslaw.’ I remember it to this day.” [Wired News, 3/1993]

Entity Tags: Inslaw, Inc., Frank Mallgrave, Executive Office for US Attorneys (DOJ), Laurence McWhorter

Category Tags: Origin of Dispute

Edwin Meese, Counsellor to President Ronald Reagan, praises the PROMIS application at a gathering of prosecutors. He calls it “one of the greatest opportunities for [law enforcement] success in the future.” PROMIS is a database search system to help prosecutors find information about cases and people involved in them. [Wired News, 3/1993]

Entity Tags: Edwin Meese

Category Tags: Origin of Dispute

A PROMIS oversight committee is formed at the Justice Department to supervise the implementation of the PROMIS software at US attorneys’ offices. The committee’s members are initially Associate Attorney General Rudolph Giuliani, Associate Deputy Attorney General Stanley E. Morris, Director of the Executive Office for US Attorneys William P. Tyson, and the Justice management division’s Assistant Attorney General for Administration Kevin D. Rooney. The associate attorney general is the chairman of the committee. The date on which the committee is established is unclear, but it will be mentioned in a memo dated August 13, 1981, so it must be at this date at the latest. Lowell Jensen will also be significantly involved in the committee, first as the associate attorney general for the criminal division until early 1983, and then as associate attorney general, meaning he also chairs the committee. The main official who reports to the committee is PROMIS project manager C. Madison “Brick” Brewer, although he will not be hired by the department until the start of the next year (see April 1982). [US Congress, 9/10/1992]

Entity Tags: Justice Management Division, William P. Tyson, Executive Office for US Attorneys (DOJ), US Department of Justice, Criminal Division (DoJ), Kevin D. Rooney, Stanley E. Morris, Rudolph (“Rudy”) Giuliani, Lowell Jensen

Category Tags: Other Events

The Justice Department issues a request for proposals (RFP) for the installation of public domain PROMIS software. Two of the 104 companies that ask for the request for proposals submit bids. However, one of them, Systems Architects, Inc., has problems in its bid and the contract will be awarded to the other, Inslaw (see March 1982).
Problems with Installation Concept - The installation is to be on minicomputers and word processors, although both Inslaw, which developed PROMIS, and other potential bidders had previously advised the department not to try to perform PROMIS functions on word processing equipment, as it is not powerful enough. One reason for this is that PROMIS involves over 500,000 lines of Common Business Oriented Language (COBOL) program code and requires a very large-capacity computer at this time. In addition, Inslaw advises the department to move toward the use of more powerful computers that could perform both case management and word processing. However, the department ignores the advice.
Existence of Privately-Funded Enhancements 'Explicit' - There will later be an argument about how much the department should pay Inslaw for the software. This dispute will turn on privately-funded enhancements to the application Inslaw says it makes after an initial version of PROMIS was developed using government money. According to a report drafted by the House Judiciary Committee, during the contract negotiations, Inslaw is “explicit in stating to the department that its version of PROMIS had been enhanced with private funds and future enhancements funded outside the department’s contract were expected.” Nevertheless, the department will say that it owns the software, and will cite as support amendments to the RFP that make available to all bidders copies of the pilot project software, and state that the RFP does not anticipate redevelopment of the public domain PROMIS software used in the pilot offices. If any alterations are made under the contract, they are to be made available to the offices using a current version. Regarding the amendments, the committee will comment, “Unfortunately, this language may also have blinded department management to the idea that Inslaw had made privately funded enhancements that were its property.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, House Judiciary Committee, Inslaw, Inc., Systems Architects, Inc.

Category Tags: Origin of Dispute

Lieutenant Colonel Oliver North works with the Federal Emergency Management Agency (FEMA) to develop plans for implementing martial law in the event of a national emergency. The plans are developed under the highly classified Continuity of Government (COG) program, which is designed to ensure the survival of the federal government in times of disaster. As a member of the National Security Council (NSC), North is assigned to the Emergency Mobilization Preparedness Board (EMPB), formed by President Reagan to coordinate civil defense planning among the NSC, FEMA, and White House (see December 29. 1981). According to the Miami Herald, the martial law plans would “suspend the Constitution in the event of a national crisis, such as nuclear war, violent and widespread internal dissent, or national opposition to a US military invasion abroad.” Sources will claim North is involved in a major domestic surveillance operation as part of the COG program (see 1980s and 1980s or Before). During investigations into the Iran-Contra affair, Representative Jack Brooks (D-TX) will be barred from asking North about his involvement with the plans and the secret program (see 1987). [Miami Herald, 7/5/1987; Reynolds, 1990; Radar, 5/2008]

Entity Tags: Emergency Mobilization Preparedness Board, National Security Council, Federal Emergency Management Agency, Oliver North, Jack Brooks

Timeline Tags: Civil Liberties

Category Tags: Use Outside Justice Department

The PROMIS database application is used for a program called “Follow the Money” to track loans made by Western banks to the Soviet Union and its allies. The top-secret program is run for the National Security Council (NSC) by Norman Bailey, who uses NSA signals intelligence to track the loans. Bailey will later say that the PROMIS application is “the principal software element” used by the NSA and the Treasury Department in their electronic surveillance programs that track financial flows to the Soviet bloc, organized crime, and terrorist groups. According to Bailey, this program marks a significant shift in resources from human spying to electronic surveillance, as a way to track money flows to suspected criminals and American enemies. [Salon, 7/23/2008]

Entity Tags: National Security Agency, US Department of the Treasury, National Security Council, Norman Bailey

Category Tags: Use Outside Justice Department

Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office of US Attorneys provides a copy of a government-owned version of PROMIS to Bob Bussey of the Colorado District Attorneys’ Council. The version is a pilot one for Prime computers and is provided at the request of the department’s PROMIS project manager, Madison “Brick” Brewer. Rugh will later discuss the availability of other government-owned versions of PROMIS with Bussey and will provide him with a version for DEC computers early next year. [US Congress, 9/10/1992] This is one of several occasions when OMISS provides versions of the software to entities outside the Justice Department (see April 22, 1983).

Entity Tags: Jack Rugh, Executive Office for US Attorneys (DOJ), Office of Management Information Systems Support, US Department of Justice, Bob Bussey

Category Tags: Use Outside Justice Department

Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys repeatedly tells Jean Gollatz of the Pennsylvania State Government that a pilot government-owned version of the PROMIS software for Prime computers is available for her use, if she wants it. He also provides her with a copy of a request for proposal used by his office for a computer contract at some time in early 1982, and says that his office’s enhanced Prime version should be available by mid-summer 1983. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).

Entity Tags: Jean Gollatz, Jack Rugh, Office of Management Information Systems Support, US Department of Justice, Executive Office for US Attorneys (DOJ)

Category Tags: Use Outside Justice Department

Inslaw wins a $9.6 million contract from the Justice Department to install the public domain vesion of PROMIS application in 20 US attorneys’ offices as a pilot program. PROMIS is an application designed to be used by prosecutors to keep track of case records (see Mid-1970s). If the trial installation is successful, the company will install PROMIS in the remaining 74 federal prosecutors’ offices around the country. The contract is also for the necessary training, maintenance, and support for three years. According to William Hamilton, one of Inslaw’s owners, the eventual market for complete automation of the Federal court system is worth up to $3 billion. However, this is the last contract Inslaw receives from the Justice Department for PROMIS, as the deal becomes mired in a series of disputes. [US Congress, 9/10/1992; Wired News, 3/1993]

Entity Tags: William Hamilton, US Department of Justice, Inslaw, Inc.

Category Tags: Origin of Dispute

C. Madison “Brick” Brewer gets the job of supervising a contract with Inslaw for the installation of the PROMIS database and search application (see March 1982). [US Congress, 9/10/1992; Wired News, 3/1993] According to a report by the House Judiciary Committee, Brewer gets the job from William P. Tyson of the Justice Department’s Executive Office for US Attorneys (EOUSA). [US Congress, 9/10/1992] However, according to Wired magazine, Brewer is appointed by EOUSA Director Laurence McWhorter, who had told a previous candidate for the position that he was “out to get Inslaw” (see Spring 1981). [Wired News, 3/1993] Brewer had originally been hired by the EOUSA in January. [US Congress, 9/10/1992] He once worked for Inslaw, but was allowed to resign when its founder William Hamilton found his performance inadequate (see 1976). [Wired News, 3/1993] Brewer will soon demonstrate his hostility to Inslaw, and the company will ask that he be replaced (see April 14, 1982, April 19, 1982, and Mid-April 1982).
Importance of Job - As the project manager, Brewer is involved in all major contract and technical decisions, including forming the department’s position on Inslaw’s claim that it should be paid for privately-funded enhancements it makes to PROMIS. Brewer also reports on progress on the contract to the department’s PROMIS Oversight Committee (see August 13, 1981 or Before).
Comment by Assistant Attorney General - Assistant Attorney General Lowell Jensen will later comment: “I would think that the better path of wisdom is not to do that [i.e. hire an allegedly fired employee to direct the contract of his former employer] if that’s possible to do. I think that it’s better to have these kinds of issues undertaken by people who don’t have questions raised about them one way or the other whether they are biased in favor of or against the people they deal with.” However, this thinking apparently does not impact the department’s decision to hire Brewer.
House Judiciary Committee Investigation - In the light of these circumstances, the House Judiciary Committee will call the appointment a “curious choice,” partly because Brewer tells it: “I was not a computer person. We talked about my role viewed as being liaison, the person who would make things happen, a coordinator. It was not contemplated that I would, by osmosis or otherwise, learn computer science.” After interviewing Justice Department staff, the committee will find that it is “unable to determine how Mr. Brewer came to be considered for the position.” The committee will also point out: “The potential conflict of interest was an unsatisfactory situation irrespective of his admittedly negative feelings about his forced resignation from the company. Had Mr. Brewer taken actions which could have been construed to unduly favor Inslaw throughout the life of the contract, similar questions of potential conflict could just as easily have arisen either from within the department or from outside competitors of the company.”
Findings of Government Accountability Office and Permanent Subcommittee on Investigations - The Government Accountability Office and Congress’s Permanent Subcommittee on Investigations (PSI) will find that Brewer’s appointment as project manager creates an appearance of a conflict of interest that should have been avoided by the department. The PSI report will say, “The staff finds that the department exercised poor judgment in ignoring the potential for a conflict of interest in its hiring of the PROMIS project director [Brewer], and then, after receiving allegations of bias on his part, in failing to follow standard procedures to investigate them in a timely manner.”
Courts' Opinions - During the legal proceedings that stem from a dispute between Inslaw and the department, two courts will comment on the issue. George Bason, of the Bankruptcy Court for the District of Columbia, will say, “On the basis of the evidence taken as a whole, this court is convinced beyond any doubt that Brewer was consumed by hatred for and an intense desire for revenge against Mr. Hamilton and Inslaw, and acted throughout this matter in a thoroughly biased and unfairly prejudicial manner toward Inslaw.” William Bryant, of the District Court for the District of Columbia, will add, “The nature and circumstances of his separation from that employment are somewhat in dispute, but it is clear that Brewer was not happy in his job when he left it after being urged to do so by Hamilton.”
Brewer's Motivation - Inslaw attorney Harvey Sherzer will comment in court on one of the motivations apparently driving Brewer: “[H]e seemed to think there was something wrong with a contractor benefiting from a government contract.… The gist of what he seemed to be saying was that by performing this contract Inslaw and Mr. Hamilton, specifically, was making an effort to expand the company. And there seemed to be a negative inference toward Inslaw’s ability to use the base created by this contract to expand.” [US Congress, 9/10/1992]
Office of Professional Responsibility Conclusion - On the contrary, the Justice Department’s Office of Professional Responsibility will examine the matter and rule there is no conflict of interest. Brewer will later tell a federal court that everything he does regarding Inslaw is approved by Jensen. Jensen had previously supervised a product known as DALITE, which lost a major contract to Inslaw in the 1970s. [Wired News, 3/1993]

Entity Tags: Lowell Jensen, William Bryant, Office of Professional Responsibility, Laurence McWhorter, Permanent Subcommittee on Investigations, US District Court for the District of Columbia, House Judiciary Committee, Harvey Sherzer, Bankruptcy Court for the District of Columbia, C. Madison “Brick” Brewer, Inslaw, Inc., Executive Office for US Attorneys (DOJ), George Bason, Government Accountability Office, Frank Mallgrave, William P. Tyson

Category Tags: Origin of Dispute

A lawyer acting for Inslaw writes to the Justice Department telling it that Inslaw intends to market a version of the PROMIS software commercially. The lawyer, Roderick M. Hills of Latham & Watkins, tells Associate Deputy Attorney General Stanley E. Morris, who is also a member of the committee overseeing PROMIS, that, even though the software was initially developed with government money (see Mid-1970s), private enhancements to it mean that Inslaw can sell the improved version for a fee. The letter is accompanied by a memorandum from Inslaw owner William Hamilton explaining the situation. Inslaw and the department have just signed a contract for Inslaw to implement the public domain version of the software at US attorneys’ offices for the department (see March 1982). However, the privately-funded enhancements mean that if the department chose to use the latest version, it would have to pay for the actual software, as well as installation and maintenance costs. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., Latham, Watkins & Hills, Roderick M. Hills, William Hamilton

Category Tags: Origin of Dispute

One month after the Justice Department and Inslaw sign a contract on the installation of PROMIS software (see March 1982), a departmental official raises the possibility of terminating the contract. At a meeting of the PROMIS Project Team, project manager C. Madison Brewer, the Justice Department’s contracting officer Peter Videnieks, and Jack Rugh, the acting assistant director for the Office of Management Information Systems Support, discuss terminating the contract with Inslaw for convenience of the government, according to notes taken at the meeting. “Discussed Inslaw’s ‘PROMIS II’ memo, termination for convenience discussed,” read Videnieks’ notes. When the contract becomes the subject of a series of legal actions, the three men begin to suffer from what the House Judiciary Committee will call “severe memory loss” over what happened at the meeting. In a sworn statement, Brewer will say he does not recall the details of the meeting, but if this recommendation were made, it was made “in jest.” However, he will admit to being upset with Inslaw’s handling of the contract and its demand for payment for enhancements it had made privately to the application (see April 2, 1982). Bankruptcy Court Judge George Bason will comment: “All of the [Justice Department] witnesses who attended the April 14, 1982 meeting professed a total lack of memory about it. They testified they had no recollection of any such meeting. This court disbelieves that testimony. None of them could offer any credible explanation, or indeed any explanation, of the meaning of Videnieks’ handwritten notes other than what this court finds to be their meaning.… These notes constitute a ‘smoking gun’ that clearly evidences Brewer’s intense bias against Inslaw, his single-minded intent to drive INSLAW out of business, and Rugh’s and Videnieks’ complicity.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Peter Videnieks, Jack Rugh, C. Madison “Brick” Brewer, George Bason

Category Tags: Origin of Dispute

Inslaw asks the Justice Department to appoint a manager other than C. Madison “Brick” Brewer to run the PROMIS project that Inslaw is working on for the department. Brewer had formerly worked for Inslaw, but had left under a cloud (see 1976), and later been hired by the department to supervise the contract between it and Inslaw (see April 1982). Following initial problems with Brewer (see April 14, 1982 and April 19, 1982), Inslaw asks Associate Deputy Attorney General Stanley E. Morris to replace him, as Inslaw owner William Hamilton thinks he has antagonistic feelings toward Inslaw due to their past. However, departmental officials say that Brewer’s skills and prior employment with Inslaw were important factors in his hiring by the department. Laurence McWhorter, deputy director of the Executive Office for US Attorneys, will later say that Brewer’s employment by Inslaw qualified him to “run the implementation of a case tracking system for US attorneys” and “to basically direct the implementation of a case tracking system in US attorneys offices.” The House Judiciary Committee will comment, “It is difficult to understand, however, how… McWhorter could make this statement” because Brewer himself admitted that at the time he left Inslaw, “he had very little, if any, experience in managing computer projects and government ADP [automated data processing] procurement law,” and he also “admitted to a lack of experience or detailed understanding of computers or software.” [US Congress, 9/10/1992]

Entity Tags: William Hamilton, Stanley E. Morris, US Department of Justice, Inslaw, Inc., C. Madison “Brick” Brewer, Executive Office for US Attorneys (DOJ), Laurence McWhorter, House Judiciary Committee

Category Tags: Origin of Dispute

Justice Department manager C. Madison Brewer displays his hostility towards Inslaw, Inc., in a meeting to discuss the implementation of the PROMIS application. An Inslaw memorandum of the meeting says, “Brewer seized upon this issue [that Inslaw wanted to be paid for privately-financed enhancements it had made to the software] and launched into a tirade which was very emotional, unorganized, and quite illogical.” Brewer’s complaints are:
bullet The memo claiming the payments is “typical of Inslaw and [Inslaw owner] Bill Hamilton and that it was self-serving and unnecessary.”
bullet How did the Justice Department “know that we might say work was not finished under our government contracts and the next week copyright the work and begin selling it back to the Justice Department?”
bullet A press release about a contract awarded to Inslaw was inaccurate because “it described West Virginia as a successful implementation when in fact, they had spent an additional 20K [$20,000] on the project and Lanier was doing all the work.”
bullet The memo had caused “all kinds of problems in Justice and had many people upset.”
bullet “Illinois Criminal Justice Coordinating Council, Michigan Prosecuting Attorney’s Association, Andy Voight, and others,” would say that “Inslaw did not do good or successful work.”
bullet “Hamilton started the PROMIS system as an employee of the DC, USAO [US Attorneys Office in Washington, DC]. And that all of the software was developed with Federal funds and what right did Hamilton have to try to claim ownership of the software.”
The memo adds, “All of these comments were based with an obvious dislike of Bill Hamilton and a resentment for the success of Inslaw personified in him.” [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., C. Madison “Brick” Brewer, US Department of Justice

Category Tags: Origin of Dispute

Inslaw enhances its PROMIS software under contract to the Bureau of Justice Statistics, part of the Justice Department. The improvement, known as the “printed inquiry enhancement,” is delivered to the department on May 17, 1982. As the development of the original software and this enhancement is government-funded (see Mid-1970s), Inslaw cannot charge for providing the software to the government solely by virtue of this improvement. However, Inslaw also says it makes privately-funded enhancements at this time, enabling it to charge a fee for a version of the application with these enhancements (see April 2, 1982 and July 17, 1982). [US Congress, 9/10/1992]

Entity Tags: Bureau of Justice Statistics, US Department of Justice, Inslaw, Inc.

Category Tags: Origin of Dispute

Inslaw’s attorney James Rogers writes to the Justice Department in an attempt to allay fears the department has about the implementation of the company’s PROMIS software for it. Rogers provides Associate Deputy Attorney General Stanley E. Morris with a detailed description of what the company plans to do to market the software commercially from the next month, and asks that the department respond to Inslaw to “ensure that these representations are correct.” Rogers says that the version of PROMIS the company will market comprises three parts: (1) the original application developed with government money (see Mid-1970s); (2) enhancements made by Inslaw using private money (see April 2, 1982 and July 17, 1982); and (3) an enhancement made for the Bureau of Justice Statistics (see Before May 17, 1982). Parts (1) and (3) do not entitle Inslaw to market the software commercially themselves. However, part (2) does. At the Justice Department, both C. Madison “Brick” Brewer, who supervises the PROMIS contract, and Peter Videnieks, the department’s contracting officer, are unhappy with this intention. The House Judiciary Committee will comment that this letter is “followed by a very antagonistic meeting” between Brewer and Inslaw representatives, and that Brewer and Videnieks continue “to believe that, because the department was currently funding the implementation of PROMIS, they could ignore Inslaw’s proprietary interest in the privately funded enhancements made to the PROMIS software.” [US Congress, 9/10/1992]

Entity Tags: Stanley E. Morris, US Department of Justice, Inslaw, Inc., C. Madison “Brick” Brewer, House Judiciary Committee, Peter Videnieks

Category Tags: Origin of Dispute

In an internal memo, Inslaw employee John Gizarelli outlines a problem concerning the PROMIS project with the Justice Department official handling the contract, C. Madison “Brick” Brewer (see April 14, 1982, April 19, 1982, and Mid-April 1982). Brewer had left Inslaw under a cloud in the mid-1970s (see 1976), but is now overseeing the PROMIS implementation project at the Justice Department. Gizarelli writes to Inslaw vice president Dean Merrill that Brewer “has made no secret of his dislike of [Inslaw president] Bill Hamilton.” He adds: “In his present job, he is in a position to demonstrate his dislike. Bill, however, has kept his distance from the project and probably will continue to do so, until and unless there are large problems which Bill—in his role as president—must deal with personally. It is entirely possible—and I believe likely—that Brick will escalate the level of controversy until he draws Bill into the project, at which time he will be able to ‘lord it over him’ and show who’s boss. I don’t think Brick will ever be at peace with his feelings about Bill and therefore, with us.” [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., Dean Merrill, John Gizarelli, C. Madison “Brick” Brewer, William Hamilton

Category Tags: Origin of Dispute

Joyce Demy, an employee of the software company Inslaw, writes to the firm’s lawyer saying that it made enhancements to its PROMIS software worth $1 million between May 1981 and May 1982. She also tells the lawyer, James Rogers of Latham, Watkins & Hills, that no government money was used for the enhancements, which were paid for solely out of private funds. Prior to the enhancements, the original PROMIS software was in the public domain, as it had been paid for by government money (see Mid-1970s). However, the various privately-funded enhancements mean that Inslaw can claim ownership of it. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., James Rogers, Joyce Demy, Latham, Watkins & Hills

Category Tags: Origin of Dispute

Associate Deputy Attorney General Stanley Morris writes to James Rogers, an attorney acting for Inslaw, and admits that the company owns privately funded improvements to the PROMIS software. Morris first points out that part of the software was financed by the government: “We agree that the original PROMIS, as defined in your letter of May 26, 1982 (see May 26, 1982), is in the public domain. We also agree that the printed inquiry enhancement is in the public domain.” This means that Inslaw could never charge the department for the use of software comprising only the original application and the printed inquiry enhancement (although it could of course charge for installation and maintenance). However, Morris adds, “To the extent that any other enhancements to the system were privately funded by Inslaw and not specified to be delivered to the Department of Justice under any contract or other arrangement, Inslaw may assert whatever proprietary rights it may have.” This means the department agrees that Inslaw can sell a version of the software with privately-funded enhancements. [US Congress, 9/10/1992] This statement is made in response to a letter sent by lawyers acting for Inslaw founder William Hamilton, informing the department that Inslaw intends to become a private company, and asking it to waive any proprietary rights it might claim to the enhanced version. Clarification will be provided in a 1988 deposition in which Deputy Attorney General Arnold Burns will say, “Our lawyers were satisfied that Inslaw’s lawyers could sustain the claim in court, that we had waived those [proprietary] rights.” [Wired News, 3/1993]

Entity Tags: US Department of Justice, William Hamilton, Arnold Burns, Inslaw, Inc., Stanley E. Morris

Category Tags: Origin of Dispute

Peter Videnieks, the Justice Department’s contracting officer, writes to Inslaw and says that it is in default of a clause in a contract between it and the government on the installation of PROMIS software. The clause concerns advance payments made by the department, which Inslaw needs to receive for its work under the contract in order to keep on operating as a business. Due to Inslaw’s poor financial situation, the House Judiciary Committee will comment that withholding the advance payments would have a “devastating impact” on the company, and Videnieks will later say he was aware of this, stating, “I think I was advised at the same time that Inslaw may indeed have difficulty in meeting the December payroll, and I think in general I was advised that they were in bad financial condition.” Due to its lack of cash, Inslaw had assigned rights to the advance payments to a financial institution to secure a line of credit. Justice Department PROMIS project manager C. Madison “Brick” Brewer will say that the reason the department is considering terminating the advance payments is a loan Inslaw has from the Bank of Bethesda, under which a lien was placed on the advance payments received by Inslaw from a specific account (not the account itself). According to Brewer, the lien is contrary to the contract and places the government in financial risk. [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, House Judiciary Committee, C. Madison “Brick” Brewer, Peter Videnieks, Inslaw, Inc.

Category Tags: Origin of Dispute

A technical representative for the Justice Department formally asks Inslaw for a copy of the PROMIS software currently being used by US attorneys’ offices. The department will later say that this request is motivated by concern over the financial viability of Inslaw, although the company is in financial difficulty because the government is withholding advance payments it owes (see November 10, 1982). At this time, the department has not yet obtained the minicomputer hardware for each attorney’s office and Inslaw has arranged for the largest US attorneys’ offices to use PROMIS on a time-sharing basis. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice

Category Tags: Origin of Dispute

Peter Videnieks, the Justice Department’s contracting officer, writes to Inslaw to demand that it turn over all computer programs and supporting documentation relating to a contract to install PROMIS software for the department (see March 1982). In response, Inslaw says it will not do this without the department modifying the contract between them to acknowledge that it has inserted privately-funded enhancements into a public domain version developed for the department. This modification is apparently required because the department is using a time-share version of the application in advance of full installation, and Inslaw’s other timesharing customers also use a version with the enhancements. The department then says that the original contract called for software in which the government has unlimited rights, and asks Inslaw to identify the parts of the software it claims are proprietary. Inslaw offers to provide the enhanced software to the 94 attorneys’ offices covered by the contract at no extra charge, provided the department agrees to Inslaw’s rights and does not disseminate the software beyond these offices. However, Videnieks will later tell investigators for the House Judiciary Committee that the department believed that it had unlimited rights to any versions of PROMIS, and if restrictions were placed on data rights, then this would not satisfy Inslaw’s obligation under the contract. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice, Peter Videnieks

Category Tags: Origin of Dispute

The Justice Department’s PROMIS project manager, C. Madison “Brick” Brewer, writes a memo about potential developments in the project. In the memo, he says he is concerned about the possibility Inslaw, the company that is implementing the PROMIS software, may go bankrupt, and that staff at the Executive Office for US Attorneys may need to take over the project. Brewer also mentions the possibility that the contract with Inslaw could be terminated by the department. Inslaw will enter bankruptcy in 1985, at least partially as a result of the department withholding payments from it (see February 1985). [US Congress, 9/10/1992]

Entity Tags: C. Madison “Brick” Brewer, US Department of Justice, Inslaw, Inc.

Category Tags: Origin of Dispute

The Justice Department makes a counter-proposal in the dispute over whether Inslaw should provide an enhanced version of the PROMIS software and documentation to the department to ensure against the company’s bankruptcy (see December 6, 1982). The counter-proposal is made in a letter from Peter Videnieks, the department’s contracting officer, to Harvey Sherzer, an attorney for Inslaw. Videnieks still wants a copy of the enhanced PROMIS software, but is willing to limit the software’s dissemination to the attorneys’ offices contemplated by the original contract. However, the department does not admit that Inslaw has made privately-funded enhancements to the software, so this limitation on dissemination will only apply if Inslaw can demonstrate the privately-funded enhancements that it claims have actually been made. Nevertheless, no mechanism for producing such proof will be specified. If Inslaw can show the software contains such enhancements, the department will either tell it to remove them, or negotiate regarding inclusion of the enhancements. [US Congress, 9/10/1992]

Entity Tags: Harvey Sherzer, Inslaw, Inc., Peter Videnieks, US Department of Justice

Category Tags: Origin of Dispute

Inslaw and the Justice Department conclude a modification, number 12, to a contract under which the company is to install PROMIS software for the department (March 1982). The modification appears to resolve a dispute that has arisen between the two parties (see December 6, 1982 and March 18, 1983), as the department wants Inslaw to give it a copy of the software, but Inslaw says it has made privately-funded enhancements to the code and wants the department to undertake not to disseminate the enhanced software beyond the locations specified in the original contract (the department is entitled to disseminate an earlier, public domain version of the contract any way it wants). The modification says that Inslaw will give the department a copy of the software, and the department undertakes not to disseminate it in future, provided that Inslaw can demonstrate the enhancements were actually made. As a result of the agreement, the department will continue to make advance payments to Inslaw. It is this modification that leads to a series of legal disputes that will last well into the next decade, as the parties never come to an agreement on how the enhancements are to be demonstrated and the department begins to disseminate the software unchecked. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice

Category Tags: Origin of Dispute

An official in the Massachusetts State government asks a Justice Department official about the availability of PROMIS software from sources other than Inslaw, the company that created it. This follows a demonstration of PROMIS by Inslaw at the Boston US Attorneys office to a group of people from the State of Massachusetts. The Massachusetts request is passed on to Jack Rugh of the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys. Rugh replies that some government-owned versions of the software are available, but there is currently a dispute with Inslaw over ownership of an enhanced version of the software. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).

Entity Tags: Office of Management Information Systems Support, Jack Rugh, US Department of Justice, Executive Office for US Attorneys (DOJ)

Category Tags: Use Outside Justice Department

The Justice Department makes a version of PROMIS software owned by the government available to a contractor named Dave Hudak. The version is a pilot copy for use on Prime computers and is provided to Hudak under a contract according to which he should develop benchmarking programs for computer purchases by the department. Apparently, the version is made available by the Office of Management Information Systems Support (OMISS) at the Executive Office for US Attorneys. No restrictions are placed on the use of this software. According to Jack Rugh of OMISS, the department may also tell the bidders a version of PROMIS which Inslaw claims it owns may be made available to them at some future date. [US Congress, 9/10/1992] This is one of several occasions when OMISS provides versions of the software to entities outside the Justice Department (see April 22, 1983).

Entity Tags: Jack Rugh, Executive Office for US Attorneys (DOJ), Office of Management Information Systems Support, US Department of Justice, Dave Hudak DUP DO NOT USE

Category Tags: Use Outside Justice Department

Various versions of PROMIS software owned by the government are made available to potential bidders who may offer to supply computer equipment to the government. Apparently, the versions are made available by the Office of Management Information Systems Support (OMISS) at the Executive Office for US Attorneys for use in benchmarking the contractors’ equipment. No restrictions are placed on the use of this software. According to Jack Rugh of OMISS, the Justice Department may also tell the bidders a version of PROMIS which Inslaw claims it owns may be made available to them at some future date. [US Congress, 9/10/1992] This is one of several occasions when OMISS provides versions of the software to entities outside the Justice Department (see April 22, 1983).

Entity Tags: Office of Management Information Systems Support, Jack Rugh, US Department of Justice, Executive Office for US Attorneys (DOJ)

Category Tags: Use Outside Justice Department

Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Executive Office for US Attorneys holds a number of informal discussions with personnel in the Justice Department’s criminal division regarding the division’s possible use of OMISS’s enhanced version of PROMIS, as well as its use of one of OMISS’s Prime computers. In addition, the possibility of cooperating on PROMIS software maintenance and enhancements in the future is discussed. [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).

Entity Tags: Jack Rugh, Executive Office for US Attorneys (DOJ), Office of Management Information Systems Support, US Department of Justice, Criminal Division (DoJ)

Category Tags: Use Outside Justice Department

Jack Rugh of the the Office of Management Information Systems Support (OMISS) at the Justice Department’s Executive Office for US Attorneys discusses the availability of a government-owned pilot version of PROMIS software, as well as an enhanced version, with Don Manson of the Bureau of Justice Statistics on a number of occasions. According to a later memo drafted by Rugh, Manson is “particularly interested in providing a copy of our enhanced software to the US Virgin Islands.” [US Congress, 9/10/1992] This is one of several occasions when OMISS discusses providing versions of the software to other entities (see April 22, 1983).

Entity Tags: Executive Office for US Attorneys (DOJ), Don Manson, Office of Management Information Systems Support, Bureau of Justice Statistics, Jack Rugh, US Department of Justice

Category Tags: Use Outside Justice Department

Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Justice Department’s Executive Office for US Attorneys, drafts a memo summarizing occasions on which versions of PROMIS software have been provided to organizations other than US Attorneys’ offices by the department or such provision has been discussed. The memo is drafted in response to a request by PROMIS project manager Madison “Brick” Brewer, who asked Rugh about any discussions he may have had about such provision a week earlier. The memo lists various occasions on which versions of PROMIS were provided to entities outside the Justice Department (see Early 1982,Before April 22, 1983, and Before April 22, 1983). It also documents discussions Rugh has had about providing the software to other entities (see Early 1982, Between Early 1982 and April 22, 1983, Before April 22, 1983, and Before April 22, 1983). [US Congress, 9/10/1992]

Entity Tags: Jack Rugh, Executive Office for US Attorneys (DOJ), Office of Management Information Systems Support, C. Madison “Brick” Brewer, US Department of Justice

Category Tags: Use Outside Justice Department

A Justice Department official writes a memo saying he will soon provide the PROMIS application to an Israeli government representative. The official is Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Executive Office of US Attorneys. The memo states that “Reference my memorandum to file dated April 22, 1983, on the same subject. [C. Madison] Brick Brewer [PROMIS project manager at the Justice Department] recently instructed me to make a copy of an LEAA version of PROMIS [a version wholly owned by the Justice Department] available to Dr. Ben Orr, a representative of the government of Israel. Dr. Orr called me to discuss that request after my earlier memorandum was written. I have made a copy of the LEM DEC version of PROMIS and will provide it along with the corresponding documentation, to Dr. Orr before he leaves the United States for Israel on May 16.”
High Officials Possibly Involved - The House Judiciary Committee will comment: “Given the international dimensions to the decisions, it is difficult to accept the notion that a group of low-level Department personnel decided independently to get in touch with the government of Israel to arrange for transfer of the PROMIS software. At the very least, it is unlikely that such a transaction occurred without the approval of high-level Department officials, including those on the PROMIS Oversight Committee.”
Actual Version of PROMIS Unclear - The committee will also later speculate that a version whose ownership is under dispute was also given to the Israelis, saying: “[I]t is uncertain what version actually was transferred. Department managers believed that all versions of the Enhanced PROMIS software were the Department’s property. The lack of detailed documentation on the transfer, therefore, only creates new questions surrounding allegations that Enhanced PROMIS may have been sold or transferred to Israel and other foreign governments.” [US Congress, 9/10/1992] Rugh will pass the application to Brewer for handing over to Orr six days later (see May 12, 1983).

Entity Tags: Executive Office for US Attorneys (DOJ), C. Madison “Brick” Brewer, US Department of Justice, Office of Management Information Systems Support, Benjamin Orr, Jack Rugh

Category Tags: Use Outside Justice Department

Jack Rugh, the acting assistant director of the Office of Management Information Systems Support at the Justice Department’s Executive Office for US Attorneys, writes a memo turning over the PROMIS application to a colleague, C. Madison Brewer. The application is for passage to the government of Israel, a transfer already discussed by Brewer and Rugh (see May 6, 1983). Rugh writes: “Enclosed are the PROMIS materials that you asked me to produce for Dr. Ben Orr of the government of Israel. These materials consist of the LEM DEC PDP 11/70 version of PROMIS on magnetic tape along with the printed specifications for that tape, as well as two printed volumes of PROMIS documentation for the LEAA version of the system.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Office of Management Information Systems Support, Jack Rugh, C. Madison “Brick” Brewer, Benjamin Orr, Executive Office for US Attorneys (DOJ)

Category Tags: Use Outside Justice Department

Peter Videnieks, the Justice Department’s contracting officer, writes to Inslaw to set out the department’s position on a significant modification to a contract between the two organizations. Videnieks agrees that modification 12 “continues to limit dissemination of that version of the PROMIS computer software [a privately-enhanced version] specified in the modification.” He adds that the modification “will continue to apply in the event that the government invokes the provisions of Clause 22, ‘Disputes,’ in that the government will limit dissemination pending a contracting officer’s final decision in the matter.” [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice, Peter Videnieks

Category Tags: Origin of Dispute

Inslaw implements its enhanced PROMIS software at 20 US attorneys’ offices. The implementation is performed pursuant to a contract signed by the company and the Justice Department in 1982 (March 1982). [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice

Category Tags: Origin of Dispute

Deputy Attorney General Lowell Jensen and other members of the Justice Department’s PROMIS Oversight Committee approve the termination of part of a contract with Inslaw, Inc., for the installation of PROMIS software (see March 1982). The termination, pushed through despite a report that there was progress with Inslaw’s attorney on the resolution of contract problems, only concerns the part of the contract for the installation of PROMIS on word processing hardware in 74 small US attorneys’ offices. Inslaw will still be contracted to install the application in 20 other US attorneys’ offices. The termination is to be for default, as Inslaw has allegedly failed to perform this portion of the contract, although a different reason will later be given (see February 1984). [US Congress, 9/10/1992]

Entity Tags: Lowell Jensen, US Department of Justice

Category Tags: Origin of Dispute

Justice Department procurement counsel William Snider issues a legal opinion stating that the department lacks legal justification to terminate part of a contract on the installation of PROMIS software for default. The department’s PROMIS Oversight Committee had decided on this course of action in December (see December 29, 1983), as it said that Inslaw, the company installing PROMIS, was not performing the contract properly. However, the committee decides to terminate the portion of the contract anyway, but for convenience—meaning Inslaw may receive some compensation—not default. PROMIS project manager C. Madison Brewer then notifies INSLAW owner William Hamilton that Deputy Attorney General Lowell Jensen has decided on partial termination. [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Lowell Jensen, William Hamilton, C. Madison “Brick” Brewer, William Snider

Category Tags: Origin of Dispute

Madison “Brick” Brewer, director of the the Office of Management Information Systems Support at the Justice Department’s Executive Office for US Attorneys, argues against accepting a proposal made by Inslaw to resolve the dispute that has arisen over rights to an enhanced version of the PROMIS application. In a memo to Kamal J. Rahal, director of the procurement and contracts staff, Justice Management Division, Brewer warns, “The proposal would substantially alter our rights in data (e.g., we would become a licensee—and thus give up the unlimited rights we currently enjoy).” [US Congress, 9/10/1992]

Entity Tags: C. Madison “Brick” Brewer, US Department of Justice, Kamal J. Rahal

Category Tags: Origin of Dispute

A company called SCT attempts to purchase Inslaw, which designed the PROMIS database and search application. SCT is assisted by the New York investment bank Allen & Co., which helps with the finance for the proposed deal. The attempt fails, but, according to Inslaw’s founder William Hamilton, in the process a number of Inslaw’s customers are warned by SCT that Inslaw will soon go bankrupt and will not survive reorganization. Wired magazine will say that Allen & Co. has “close business ties” to Earl Brian, a businessman who is said to be interested in PROMIS software and who is well-connected inside the Ronald Reagan administration. [Wired News, 3/1993]

Entity Tags: Inslaw, Inc., Earl Brian, Reagan administration, SCT, William Hamilton, Allen & Co.

Category Tags: Other Events

February 1985: Inslaw Declares Bankruptcy

Inslaw, the owner and developer of the enhanced PROMIS software, declares bankruptcy, applying for Chapter 11 reorganization at the Bankruptcy Court for the District of Columbia. Inslaw’s poor financial condition is at least partly due to a dispute with the Justice Department over the software, as the department owes it a minimum of $1.6 million in contract payments for implementation, but is withholding them. [US Congress, 9/10/1992]

Entity Tags: Bankruptcy Court for the District of Columbia, US Department of Justice, Inslaw, Inc.

Category Tags: Origin of Dispute, Legal Proceedings

Inslaw representatives Elliot Richardson and Donald Santarelli, a former administrator of the Law Enforcement Assistance Administration, meet with acting Deputy Attorney General Lowell Jensen to discuss a resolution of the Inslaw affair concerning the Justice Department’s alleged misappropriation of enhanced PROMIS software. Richardson and Santarelli ask for rapid talks to resolve disputes that have caused the department to withhold money from Inslaw and the company to go bankrupt, that the department consider a new proposal for work by Inslaw, and that Jensen appoint somebody to investigate Inslaw’s claims that some department officials, in particular C. Madison Brewer (see 1976 and April 1982), are biased against it. The business proposal is that Inslaw implement PROMIS in smaller US attorneys’ offices. This was originally covered by a contract between Inslaw and the department (see March 1982), but this part of the contract was terminated in 1984 (see December 29, 1983 and February 1984). [US Congress, 9/10/1992] The department rejects the proposal for additional work, but it is unclear whether the allegations against Brewer and others are investigated (see After March 13, 1985).

Entity Tags: Elliot Richardson, Donald Santarelli, Inslaw, Inc., Lowell Jensen, US Department of Justice

Category Tags: Internal DoJ Investigations

The Justice Department starts an internal review of the Inslaw affair, but the content of the review will be disputed. The review follows a meeting at which Inslaw representatives made three requests (see March 13, 1985): that the department negotiate on a resolution of the disputes between it and Inslaw; that it consider a new proposal made by Inslaw for additional work; and that it investigate allegations of misconduct against departmental personnel. The review is ordered by Deputy Attorney General Lowell Jensen and performed by Deputy Associate Attorney General Jay Stephens.
Jensen's Version - According to Jensen, the review is to look at the bias allegations. He will say he recalls discussing the results of Stephens’ review, adding that, based on Stephens’ assessment of the allegations, no review by the Office of Professional Responsibility is merited.
Stephens' Version - However, Stephens will tell the House Judiciary Committee under oath that he does not undertake a review of the misconduct allegations, but only looks at Inslaw’s business proposal. The committee will point out that this is in “direct contradiction” of Jensen’s version. While examining the proposal, Stephens receives several telephone calls from Inslaw attorneys Charles Work and Elliot Richardson. He feels they are lobbying the department very hard because they believe Inslaw has what the committee will call “some special relationship” with the department. According to a report by the committee, Work and Richardson attempt to convey that, “based on a longstanding relationship between the department and Inslaw, the department should look favorably on Inslaw’s new business proposal.”
Outcome of Review - However, Stephens reports to Jensen that the need for Inslaw’s business proposal is questionable and the department thinks the work can be done in-house. Jensen then writes to Richardson, saying that the department does not have an immediate need for the work, and will not act on the proposal.
Comment by House Committee - The committee will comment, “Because the department did not adequately investigate Inslaw’s allegations, the company was forced into expensive, time-consuming litigation as the only means by which the department’s misappropriation of Inslaw’s enhanced PROMIS could be exposed.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Inslaw, Inc., Elliot Richardson, Charles Work, Jay B. Stephens, Lowell Jensen

Category Tags: Internal DoJ Investigations

In an analysis of an Inslaw proposal for the resolution of the PROMIS dispute, the Executive Office for US Attorneys (EOUSA), a Justice Department component, says that Inslaw has not made any proprietary enhancements to the software. “It appears [to the department] that there are no proprietary enhancements,” says the analysis sent by William P. Tyson, the EOUSA director, to Jay Stephens, the deputy associate attorney general. “All proposals received from Inslaw attempt to force the department into acknowledging Inslaw’s proprietary interest in the US attorneys’ version of PROMIS by offering a license agreement for software maintenance,” Tyson adds. According to the memo, accepting Inslaw’s proposal “would, in effect, ratify Inslaw’s claim that the software is proprietary; not only the micro-computer version which Inslaw proposes to develop, but also the Prime mini-computer version currently operational in 20 districts.” The Justice Department’s position means that it would have unlimited rights to the software. The House Judiciary Committee will later comment that the department “may have used its ‘unlimited rights’ posture as a pretextual basis for its national and international distribution of Enhanced PROMIS outside of the department.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, William P. Tyson, Inslaw, Inc., Executive Office for US Attorneys (DOJ), House Judiciary Committee, Jay B. Stephens

Category Tags: Origin of Dispute

The Justice Department makes enhanced PROMIS software available at multiple locations, outside the framework of its contract with Inslaw on the application’s installation and over protests by the company. The software is first installed at 25 US attorneys’ offices in addition to 20 still covered by a contract between Inslaw and the department (see Between August 29, 1983 and February 18, 1985). According to Inslaw’s counsel Elliot Richardson, an enhanced version of the software is then illegally copied to support an additional two sites. Finally, 31 additional sites are brought on line via telecommunications. These additional, smaller US attorneys’ offices had initially been covered by the contract with Inslaw, but this portion of the contract was terminated in 1984 (see February 1984). Inslaw will repeatedly protest about this installation (see March 14, 1986), and a bankruptcy court will find it is in violation of the law (see September 28, 1987), although this ruling will be overturned (see May 7, 1991). [US Congress, 9/10/1992]

Entity Tags: Elliot Richardson, US Department of Justice, Inslaw, Inc.

Category Tags: Origin of Dispute

Inslaw complains about additional installations of enhanced PROMIS software by the Justice Department. Inslaw and the department had a contract for the company to install the software in 20 large US attorneys’ offices and then dozens of smaller ones (see March 1982), but the portion of the contract for the smaller offices was terminated (see February 1984), and the department is installing an enhanced version of the software Inslaw says it owns in these smaller offices (see Between June 24, 1985 and September 2, 1987). The complaint is made in a letter by Inslaw president William Hamilton to H. Lawrence Wallace, the assistant attorney general for administration. “I am extremely disturbed and disappointed to learn that the Executive Office for US Attorneys has begun to manufacture copies of the PROMIS software for customization and installation in additional US attorneys offices, specifically those in St. Louis, Missouri, and Sacramento, California,” Hamilton writes. “This action occurs at the very time that the Department of Justice and Inslaw are attempting to resolve, by negotiation, Inslaw’s claim that the US attorneys version of PROMIS contains millions of dollars of privately-financed enhancements that are proprietary products of Inslaw and for which Inslaw has, to date, received no compensation.” [US Congress, 9/10/1992]

Entity Tags: H. Lawrence Wallace, Inslaw, Inc., US Department of Justice, William Hamilton

Category Tags: Origin of Dispute

The Justice Department makes a counterproposal in the dispute with Inslaw over rights to an enhanced version of the PROMIS software. The principles of the settlement, set out by the Justice Management Division’s general counsel Janice A. Sposato in a letter to Inslaw lawyer Harvey Sherzer, are:
bullet The department will not pay Inslaw any additional money for the enhanced software obtained under a contract on implementation of PROMIS at US attorneys’ offices;
bullet Inslaw will recognize that the US government has the right to unrestricted use of the enhanced software obtained under the contract for any federal project, including projects implemented by independent contractors;
bullet The department will agree not to make or permit any disclosure or distribution of the software other than as described above, or as required by federal law.
Inslaw will not accept the counterproposal, and the dispute will continue. [US Congress, 9/10/1992]

Entity Tags: Janice A. Sposato, Harvey Sherzer, US Department of Justice, Inslaw, Inc.

Category Tags: Origin of Dispute

Peter Vidieneks, the Justice Department contracting officer working on the PROMIS contract, declares that Inslaw has not made any proprietary enhancements to the software. He therefore denies Inslaw’s claim of $2.9 million for licensing fees. This means that the Justice Department thinks it owns all versions of PROMIS, whereas Inslaw says it owns one version it has improved through privately-funded enhancements. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice, Peter Videnieks

Category Tags: Origin of Dispute

A lawyer acting for Inslaw warns the Justice Department that the department’s use of the enhanced version of PROMIS software contravenes bankruptcy legislation. Inslaw, in Chapter 11 bankruptcy due to a dispute between itself and the department (see February 1985), writes to the department’s contracting officer saying that the software’s use without Inslaw’s consent and the payment of licensing fees would contravene Inslaw’s property rights and its rights as a debtor in possession of the software under the bankruptcy code. In addition, Inslaw argues it is “a wrongful exercise of control over property of the debtor’s estate in violation of the automatic stay now in effect.” The automatic stay is a legal mechanism that prevents creditors—such as the Justice Department—harassing a debtor—such as Inslaw—in bankruptcy. Inslaw also says that the department’s dissemination of the software to third parties could damage or destroy the product’s commercial value, possibly wrecking the company. [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., US Department of Justice

Category Tags: Legal Proceedings

Inslaw files a complaint for a declaratory judgment, the enforcement of automatic stay bankruptcy protection provisions, and damages against the Justice Department in the dispute over the department’s alleged theft of enhanced PROMIS software. The automatic stay is one of the fundamental debtor protections provided by bankruptcy laws. It stops all collection efforts, harassments, and foreclosure actions, giving the debtor temporary relief from creditors. It is important because it allows a bankruptcy court to centralize all disputes concerning property of the debtor’s estate so that reorganization can proceed orderly and efficiently. [US Congress, 9/10/1992] Inslaw’s attorney for the case, Leigh Ratiner of the Washington firm Dickstein, Shapiro & Morin, chooses the bankruptcy court for the filing based on the premise that the Justice Department, as the creditor, has control of enhanced PROMIS. He will later say: “It was forbidden by the Bankruptcy Act for the creditor to exercise control over the debtor property. And that theory—that the Justice Department was exercising control—was the basis that the bankruptcy court had jurisdiction. As far as I know, this was the first time this theory had been used. This was ground-breaking.” [Wired News, 3/1993] Inslaw claims that Justice Department manager C. Madison Brewer, who was responsible for implementing PROMIS in the department, was instrumental in propelling Inslaw into bankruptcy (see April 1982, April 14, 1982, and April 19, 1982), and that he then hindered Inslaw in its development of a reorganization plan. Inslaw also alleges that its concerns were made known to the highest levels of Justice Department’s management, without any response. [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Leigh Ratiner, C. Madison “Brick” Brewer, Inslaw, Inc., Bankruptcy Court for the District of Columbia

Category Tags: Legal Proceedings

The Office of Professional Responsibility (OPR), a Justice Department oversight component, receives a letter from Laurie A. Westly, chief counsel to Senator Paul Simon (D-IL), asking for its view of allegations made by the software company Inslaw against the Justice Department. The letter mentions claims of misconduct by department official Lowell Jensen. Westly also refers to litigation recently initiated by Inslaw (see June 9, 1986), specifically the claim that Jensen contributed to the bankruptcy of Inslaw and had a negative bias toward its software. She also asks whether Jensen has breached any ethical or legal responsibility as a department employee. [US Congress, 9/10/1992] It is unclear what action the OPR takes in response to this matter. However, it conducts a preliminary investigation into whether Jensen was biased against Inslaw this year, and this may be in response to this letter (see 1986). It will also begin a fuller investigation the next year (see October 14, 1987).

Entity Tags: Lowell Jensen, Laurie A. Westly, Office of Professional Responsibility, Paul Martin Simon, Inslaw, Inc., US Department of Justice

Category Tags: Internal DoJ Investigations

The Office of Professional Responsibility (OPR), an oversight unit at the Justice Department, conducts an initial review of bias allegations against departmental officials in the Inslaw affair. The exact timing of the review is uncertain, although it may come after a query about the case from Senator Paul Simon in June (see June 16, 1986). The review finds that there is no misconduct by Justice Department manager Lowell Jensen. According to statements made by acting OPR counsel Robert Lyon and assistant counsel David Bobzein to the House Judiciary Committee in 1990, the OPR does not perform a full review at this time because the allegations of bias are not an issue OPR would normally review. Therefore, it plans to rely on the findings of a bankruptcy court hearing the Inslaw case (see June 9, 1986). However, after the bankruptcy court finds in favour of Inslaw (see September 28, 1987), partly because it thinks the bias allegations are well founded, OPR begins a full investigation (see October 14, 1987) and concludes there was no bias (see March 31, 1989). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Office of Professional Responsibility, David Bobzein, Inslaw, Inc., Lowell Jensen, Robert Lyon

Category Tags: Internal DoJ Investigations

Inslaw files a claim with the Department of Transportation Board of Contract Appeals in its dispute over the Justice Department’s use of enhanced PROMIS software. Further claims will be filed on September 19, 1986 and August 24, 1987. The claims are filed subsequent to notices of appeal submitted in February 1985, as well as May and November 1986. The monetary claims fall into six categories:
bullet Time-sharing charges for a computer center operated by Inslaw and used by several US attorneys’ offices;
bullet Contract target fees and other payments;
bullet Indirect costs, including overheads;
bullet Direct costs;
bullet Costs, including legal fees, incurred by Inslaw after a portion of the original contract was terminated by the government for its own convenience; and
bullet Costs incurred because the Department withheld payments.
However, as the issue is also the subject of a dispute before a bankruptcy court and subsequent appeal courts, the matter will be held in abeyance and the board will not take any significant steps for years. [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Department of Transportation Board of Contract Appeals, Inslaw, Inc.

Category Tags: Legal Proceedings

Senator Charles Mathias (R-MD) sends a letter to the Justice Department asking about the dispute with Inslaw over enhanced PROMIS software. The letter will spark interest by Deputy Attorney General Arnold Burns in the case (see After July 9, 1986). [US Congress, 9/10/1992]

Entity Tags: Charles Mathias, US Department of Justice

Category Tags: Origin of Dispute

Deputy Attorney General Arnold Burns is told that the Justice Department has waived its rights to enhanced PROMIS software (see August 11, 1982). Following a letter asking about the Inslaw case from Senator Charles Mathias (see July 9, 1986), Burns asks subordinates about the litigation with Inslaw and is told the company wants the department to pay royalties. Burns then suggests that the issue should be turned around and that a claim against Inslaw should be made for it to pay royalties to the government, which funded the development of the first version of PROMIS (see Mid-1970s). However, further research comes up with a result shocking to Burns, who will say in 1988, “The answer that I got, which I wasn’t terribly happy with but which I accepted, was that there had been a series of old correspondence and back and forthing [sic] and stuff, that in all of that, our lawyers were satisfied that Inslaw could sustain the claim in court, that we had waived those rights, not that I was wrong that we didn’t have them but that somebody in the Department of Justice, in a letter or letters, as I say in this back and forthing [sic], had, in effect, waived those rights.” The House Judiciary Committee will later comment, “Considering that the deputy attorney general was aware of Inslaw’s proprietary rights, the department’s pursuit of litigation can only be understood as a war of attrition between the department’s massive, tax-supported resources and Inslaw’s desperate financial condition, with shrinking (courtesy of the department) income.” The committee will add, “In light of Mr. Burns’ revelation, it is important to note that committee investigators found no surviving documentation (from that time frame) which reveal the department’s awareness of the relative legal positions of the department and Inslaw, on Inslaw’s claims to proprietary enhancements referred to by Mr. Burns.” [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., House Judiciary Committee, Arnold Burns, US Department of Justice

Category Tags: Origin of Dispute

Former Deputy Attorney General Lowell Jensen says that Attorney General Ed Meese was informed about the Justice Department’s dealings with Inslaw. He makes the statement in a sworn deposition to the Office of Professional Responsibility, a Justice Department unit investigating the department’s alleged theft of the enhanced PROMIS case tracking software from Inslaw. Jensen says, “I have had conversations with the attorney general [Meese] about the whole Inslaw matter, as to what had taken place in the PROMIS development and what had taken place with the contract and what decisions had been made by the department with reference to that.” [US Congress, 9/10/1992] However, Meese will tell the House Judiciary Committee he has no recollection of any discussions about case tracking (see July 12, 1990).

Entity Tags: Edwin Meese, Inslaw, Inc., Lowell Jensen, US Department of Justice, Office of Professional Responsibility

Category Tags: Origin of Dispute

Richard Willard, assistant attorney general of the civil division, writes a memo to Deputy Attorney General Arnold Burns about the Inslaw affair. According to Willard, George Bason, the bankruptcy court judge dealing with the Justice Department’s alleged theft of enhanced PROMIS software, should be taken off the case. Willard writes that Bason’s conduct is “so extraordinary that it warranted reassignment to another judge.” The House Judiciary Committee will comment that department officials are “concerned” about Bason’s handling of the case “very early in the litigation,” and that they think Bason tends to believe statements made by Inslaw. The committee will add: “The department believed that Judge Bason disregarded the sworn statements of department witnesses. The department also believed that Judge Bason made lengthy observations regarding the credibility of its witnesses and that Judge Bason’s uniformly negative conclusions were based on inferences not supported by the record.” Therefore, by the summer of 1987, the department is “actively seeking ways to remove Judge Bason from the case.” Bason will rule in favor of Inslaw in the autumn (see September 28, 1987). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Richard Willard, George Bason, Civil Division, Arnold Burns, House Judiciary Committee

Category Tags: Legal Proceedings

Justice Department staff tell Attorney General Edwin Meese that Judge George Bason of the Bankruptcy Court for the District of Columbia is “off his rocker,” according to a sworn statement Meese will later make to the House Judiciary Committee. Bason is presiding over a dispute between the department and the software company Inslaw (see June 9, 1986) and will eventually rule against the department (see September 28, 1987). This comment appears to be part of a campaign to get Bason removed from the case (see June 19, 1987) and a judge more favorable to the department appointed. [US Congress, 9/10/1992]

Entity Tags: Edwin Meese, US Department of Justice, George Bason

Category Tags: Legal Proceedings

According to a sworn statement made to the House Judiciary Committee by Martin Bloom, clerk of the Bankruptcy Court for the District of Columbia, the administration of the court by the clerk’s office is “up to par” by “the latter part of 1987.” Chief Judge Aubrey Robinson will agree with Bloom, complimenting the bankruptcy court’s judge, George Bason, on improvements in the court’s administrative condition in remarks to an annual judicial conference.
Condition of Clerk's Office Later Becomes Important - The condition of the clerk’s office will later become significant because it will apparently be an important factor in the non-reappointment of Bason later this year (see December 15, 1987). For example, a confidential report about his possible reappointment (see December 8, 1987) will say, “Judge Bason evidenced no inclination to come to grips personally with the management challenge posed by the terrible shortcomings of the Office of the Clerk of our Bankruptcy Court.” Bason is currently at loggerheads with the Justice Department over the Inslaw case (see June 19, 1987) and will rule in favor of Inslaw in September (see September 28, 1987).
Previous Poor Condition - It will be established that the clerk’s office was not in good condition when Bason took over the bankruptcy court in the mid-1980s, although a May 1986 report said that the system was being brought under control and Bloom will blame the previous clerk for the problems. Bloom will also say that Bason takes an active role in providing whatever assistance he can in improving the administrative condition of the court.
Committee's Assessment of Court - However, the committee that fails to reappoint Bason will somehow come to believe that it is still a mess at this time and that this is Bason’s fault, although an investigation by the House Judiciary Committee will find that “most of the district and circuit judges interviewed [who were on the reappointment committee] said that they had little or no contact with Judge Bason and were not in a position to have firsthand knowledge of the condition of his court.” Neither Bloom nor the previous clerk will be interviewed by the panel about the court’s administration and, according to Bason, there is no mechanism in place for the judges to personally evaluate it. The committee will comment: “Considering that poor administrative controls seemed to be one of the primary reasons for Judge Bason’s failed attempt at reappointment, it is unusual that neither Judge Bason nor the other individuals most responsible for the administration of the court were interviewed by the panel. Judge Robinson made a telling comment to committee investigators when he said it is unfortunate bankruptcy judges are selected by judges furthest removed from the bankruptcy court.” [US Congress, 9/10/1992]

Entity Tags: Martin Bloom, George Bason, Aubrey Robinson, Bankruptcy Court for the District of Columbia, House Judiciary Committee

Category Tags: Legal Proceedings

Deputy Attorney General Arnold Burns asks his subordinates at the Justice Department’s civil division to “consider initiatives for achieving a more favorable disposition of this matter [a legal dispute between the department and Inslaw over PROMIS software].” This is apparently a reference to the possible removal of Judge George Bason from the case, as the department thinks he is biased against it (see June 19, 1987). In response to the comments, the department will draft a report about removing Bason (see After July 7, 1987). [US Congress, 9/10/1992]

Entity Tags: Civil Division, Bankruptcy Court for the District of Columbia, George Bason, Arnold Burns, US Department of Justice

Category Tags: Legal Proceedings

Following a request from the Justice Department’s leadership (see July 7, 1987), Michael Hertz, the director of the civil division’s commercial litigation branch at the department, writes a memo entitled “Feasibility of Motion to Disqualify the Judge in Inslaw.” The department has come to believe that the judge, George Bason, is biased against it (see June 19, 1987) and hopes to challenge his findings of fact by saying they are unsupported by evidence and reflect a desire to reach a preordained conclusion. This position is mostly based on the department’s observations that some of Bason’s findings of fact are “rambling and based on deductions that are both strained and have flimsy support.” However, Hertz writes to Deputy Assistant Attorney General Stuart Schiffer that the facts simply do not support a case of bias strong enough to disqualify Bason from the remainder of the Inslaw case. Hertz adds that he is “fairly confident” that any motion to dismiss Bason would not succeed and the denial of any such motion could not be successfully challenged on appeal. He gives the following reasons:
bullet The department has no evidence that what it views as “Bason’s incredible factual conclusions or alleged bias” actually stem from an extrajudicial source, as the case law requires;
bullet Adverse factual findings and inferences against the government are not enough to support a claim of bias; and
bullet Adverse credibility rulings about some of the government’s witnesses in a prior phase of the proceedings are not on their own sufficient to disqualify Bason from the rest of the proceedings.
Hertz says that attempting to demonstrate bias by Bason could adversely affect any future appeal by the department on the findings of fact. He also advises Schiffer that as much as the department may disagree with Bason’s findings: “[T]hey are not mere conclusory statements. Instead they reflect a relatively detailed judicial analysis of the evidence, including reasons for believing certain witnesses and disbelieving others, as well as consideration of what inferences might or might not be drawn from the evidence.” [US Congress, 9/10/1992] Despite this, the department will twice attempt to get Bason recused, failing both times (see January 19, 1988 and January 25, 1988).

Entity Tags: Michael Hertz, Civil Division, Bankruptcy Court for the District of Columbia, Stuart Schiffer, US Department of Justice

Category Tags: Legal Proceedings

Assistant Attorney General Richard Willard reports to Deputy Attorney General Arnold Burns about the Inslaw case. Willard says that the Justice Department has developed a good trial record, but: “[T]here is virtually no reason for optimism about the judge’s ruling. Even though our witnesses performed admirably and we believe we clearly have the better case, Judge Bason made it apparent in a number of ways that he is not favorably disposed to our position.” The department has been trying to have Bason removed from the case for some time (see June 19, 1987) and he will soon rule in favor of Inslaw (see September 28, 1987). [US Congress, 9/10/1992]

Entity Tags: George Bason, Bankruptcy Court for the District of Columbia, Richard Willard, Arnold Burns, US Department of Justice

Category Tags: Legal Proceedings

Judge George Bason of the Bankruptcy Court for the District of Columbia issues an oral finding that the Justice Department “took, converted, and stole” the enhanced version of Inslaw’s PROMIS software by “trickery, fraud, and deceit.” The ruling is issued at the end of a trial that lasts over two weeks and involves sworn statements from over 40 witnesses and thousands of pages of documentary evidence. Bason finds that a key departmental official, project manager C. Madison Brewer, was biased against Inslaw (see April 1982, April 14, 1982, and April 19, 1982). In addition, Brewer’s boss Lowell Jensen (see December 29, 1983 and February 1984) is said to have “a previously developed negative attitude about PROMIS and Inslaw,” because he had been associated with the development of a rival case management system while he was a district attorney in California, and this affected his judgment throughout his oversight of the contract. Further, the department violated bankruptcy protection legislation that applied to Inslaw by using and exercising control over Inslaw’s property—the enhanced PROMIS software—without negotiating a license fee. This oral finding is confirmed in a written opinion issued on January 25, 1988. In the written finding, Bason adds, “[T]his court finds and concludes that the department never intended to meet its commitment and that once the department had received enhanced PROMIS pursuant to Modification 12 (see April 11, 1983), the department thereafter refused to bargain in good faith with Inslaw and instead engaged in an outrageous, deceitful, fraudulent game of ‘cat and mouse,’ demonstrating contempt for both the law and any principle of fair dealing.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Lowell Jensen, George Bason, C. Madison “Brick” Brewer, Bankruptcy Court for the District of Columbia, Inslaw, Inc.

Category Tags: Legal Proceedings

The Office of Professional Responsibility (OPR), an oversight component at the Justice Department, begins an investigation into allegations made by the software company Inslaw against some Justice Department staff. The OPR had conducted a preliminary investigation the previous year (see 1986), concluding the officials were not biased against the company. However, after a bankruptcy court finds serious wrongdoing by departmental officials (see September 28, 1987), Deputy Attorney General Arnold Burns asks for “a complete and thorough investigation into the allegation of bias and misconduct by various Justice Department officials against Inslaw.” The full investigation will again conclude that the officials were not biased against Inslaw (see March 31, 1989). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Arnold Burns, Office of Professional Responsibility, Inslaw, Inc.

Category Tags: Internal DoJ Investigations

Stuart Schiffer, deputy assistant attorney general for the Justice Department’s civil division, writes to Richard Willard, the assistant attorney general for the civil division, about the Inslaw case. Schiffer writes: “[Judge George] Bason has scheduled the next [Inslaw] trial for February 2 [1988]. Coincidentally, it has been my understanding that February 1 [1988] is the date on which he [Bason] will either be reappointed or replaced.” Bason had ruled in favor of Inslaw (see September 28, 1987) and the department had been trying to have him removed from the case for months (see June 19, 1987). After Bason’s bid for reappointment fails (see December 15, 1987), he will say that the department used its influence against him (see December 5, 1990). [US Congress, 9/10/1992]

Entity Tags: George Bason, Civil Division, Richard Willard, Stuart Schiffer, US Department of Justice, Bankruptcy Court for the District of Columbia

Category Tags: Legal Proceedings

An official written report is drafted for the panel considering the appointment of a judge to the Bankruptcy Court to the District of Columbia. The two-page report briefly assesses the final four candidates, including the incumbent George Bason, who is, however, at loggerheads with the Justice Department over his handling of the Inslaw case (see June 19, 1987 and September 28, 1987). However, another—longer but unofficial—report will be drafted two weeks later and will be critical of Bason (see December 8, 1987). [US Congress, 9/10/1992]

Entity Tags: Bankruptcy Court for the District of Columbia, George Bason

Category Tags: Legal Proceedings

An apparently unofficial, confidential memo marked “read and destroy” is drafted about the four final candidates for the position of judge at the Bankruptcy Court for the District of Columbia. The memo is clearly critical of the incumbent, George Bason, who is up for reappointment. Bason recently displeased the Justice Department by ruling against it in the Inslaw affair over the alleged theft of enhanced PROMIS software (see September 28, 1987). The memo states that “its purpose is to ‘help’ elucidate in particular our reasoning in ranking the candidates as we did,” and describes each of the four. The House Judiciary Committee will comment: “What is striking about the memorandum is that the description of each candidate except Judge Bason begins with positive commentary about the individual. The section describing Judge Bason begins, ‘I could not conclude that Judge Bason was incompetent.’ Other phrases used to describe Judge Bason include ‘he is inclined to make mountains out of molehills,’ ‘Judge Bason seems to have developed a pronounced and unrelenting reputation for favoring debtors,’ and finally, ‘Judge Bason evidenced no inclination to come to grips personally with the management challenge posed by the terrible shortcomings of the Office of the Clerk of our Bankruptcy Court.’” The memo is addressed to Judge Norma Johnson, who Bason will allege may have been an instrument of a campaign waged against him by the Justice Department (see May 1988). The panel appointing the bankruptcy court judge will meet a week later and decide not to give the position to Bason, but to a Justice Department lawyer who represented the government in the Inslaw case (see December 15, 1987). After Bason asks appeals court judges to reconsider his non-reappointment (see January 12, 1988), the memo will be circulated to them. The memo is unsigned, but an appeals court judge who later provides the memo to the House Judiciary Committee investigating the Inslaw affair will say another judge on the appointment panel drafted it. However, this judge will deny having done so. When, some years later, several members of the panel are asked by the committee whether they saw this memo, they will say they do not recognize it. [US Congress, 9/10/1992]

Entity Tags: Norma Johnson, George Bason, Bankruptcy Court for the District of Columbia, House Judiciary Committee

Category Tags: Legal Proceedings

George Bason, a bankruptcy judge who recently found in favor of Inslaw in a dispute over the Justice Department’s alleged theft of enhanced PROMIS software (see September 28, 1987), is not reappointed to the bench. Bason had been appointed in February 1984 instead of another judge who had resigned mid-term, but a decision is now taken to replace him with a Justice Department attorney named Martin Teel, who had appeared before him in the Inslaw case. Although the official report for the appointments panel about the candidates did not criticize Bason (see November 24, 1987), a subsequent unofficial report addressed to Norma Johnson, the head of the panel, did (see December 8, 1987). The unofficial report claimed that there were shortcomings in Bason’s administration of the clerk’s office, although the office appears to be running smoothly by this time (see Second Half of 1987). Several judges on the selection council will later say they did not know much about the candidates, and therefore relied on Johnson and her interpretation of reports prepared about them. The House Judiciary Committee will find that Johnson’s oral presentation “played a large role in the selection,” that Johnson ran the panel “firmly,” and that the other members “relied on her judgment.” Overall, it will call the selection process “largely informal, undocumented, and highly subjective.” Bason learns he will not be reappointed from Chief Judge Patricia Wald, of the US Court of Appeals, on December 28. Bason will later say that Teel was not qualified for the position (see January 12, 1988) and that the department had influenced the selection process in order to have him removed from the bench (see December 5, 1990). In this context, Bason will point out to the House committee that Johnson had previously worked with a departmental official named Stuart Schiffer, so he could have influenced her against Bason (see May 1988). Bason will also note that Johnson worked with Judge Tim Murphy for 10 years from 1970, and that Murphy had later worked as the assistant director on the implementation of PROMIS at the Justice Department. [US Congress, 9/10/1992]

Entity Tags: Tim Murphy, Stuart Schiffer, Norma Johnson, Martin Teel, Jr., George Bason, Bankruptcy Court for the District of Columbia, House Judiciary Committee

Category Tags: Legal Proceedings

George Bason, a bankruptcy judge who ruled in favor of Inslaw in a dispute with the Justice Department over the alleged theft of PROMIS software (see September 28, 1987) and was subsequently not reappointed to the bench (see December 15, 1987), requests a hearing on his non-reappointment before the Judicial Council of the District of Columbia. Bason criticizes the other candidate, Justice Department official Martin Teel, who was given the position, saying he has “a considerably shorter total period of legal experience,” as he has mostly worked on taxation matters, not bankruptcy, and for the last few years has worked as a reviewer and then manager, without doing his own independent work. Teel will dispute this characterization in a letter to the House Judiciary Committee, saying he was qualified and, when appointed, had “six years of fairly extensive bankruptcy experience.” The request for a hearing will not change the decision to not reappoint Bason. [US Congress, 9/10/1992]

Entity Tags: Bankruptcy Court for the District of Columbia, George Bason, Judicial Council of the District of Columbia, Martin Teel, Jr.

Category Tags: Legal Proceedings

The Justice Department files a motion that bankruptcy court judge George Bason recuse himself from further participation in a case over the bankruptcy of Inslaw and the department’s alleged theft of the enhanced PROMIS application, saying that he is biased against the department. Bason had ruled in favor of Inslaw (see September 28, 1987) and the department has been trying to have him removed from the case for months (see June 19, 1987). The motion is filed despite a report from Michael Hertz, the director of the civil division’s commercial litigation branch at the department, saying that such a move would not succeed (see After July 7, 1987). The bankruptcy court denies the motion three days later. [US Congress, 9/10/1992] The department will make a similar request later in the month (see January 25, 1988).

Entity Tags: Bankruptcy Court for the District of Columbia, George Bason, US Department of Justice

Category Tags: Legal Proceedings

The Justice Department again tries to get Judge George Bason removed from the Inslaw case over the company’s bankruptcy and the department’s alleged theft of an enhanced version of the PROMIS software. Bason had ruled in favor of Inslaw (see September 28, 1987) and the department has been trying to have him removed from the case for months (see June 19, 1987). Following the failure of a recusal motion to Bason (see January 19, 1988), the department argues a motion before Chief Judge of the District Court for Columbia Aubrey Robinson for a writ of mandamus directing Judge Bason to recuse himself over allegations of bias. Robinson denies the department’s writ, ruling: “I can’t see anything in this record that measures up to the standards that would be applicable to force another judge to take over this case. There isn’t any doubt in my mind, for example, that the declaration filed by the Justice Department in support of the original motion is inadequate.” When the department appeals Bason’s ruling (see Between February 2, 1988 and November 22, 1989), it will again raise the issue of recusal, but District Court Judge William Bryant will say, “This court like the courts before it can find no basis in fact to support a motion for recusal.” [US Congress, 9/10/1992]

Entity Tags: George Bason, Bankruptcy Court for the District of Columbia, US Department of Justice, US District Court for the District of Columbia, William Bryant, Aubrey Robinson

Category Tags: Legal Proceedings

The software company Inslaw submits allegations about the Justice Department’s conduct in the dispute over the enhanced PROMIS application to the Public Integrity Section (PIS), a departmental oversight component. The allegations follow on from the findings of a bankruptcy court favourable to Inslaw (see September 28, 1987 and January 25, 1988). In the complaint, Inslaw charges the department with:
bullet Procurement fraud. Inslaw claims that Attorney General Edwin Meese and former Deputy Attorney General Lowell Jensen schemed to ensure that enhancements made to the PROMIS software by Inslaw would be obtained for free by the department, which would then make them available to a businessman named Earl Brian;
bullet Violation of automatic stay debtor protection provisions invoked by the bankruptcy court. Inslaw says that by using the enhancements it made to the software after the bankruptcy case was filed, the department violated federal bankruptcy law. The bankruptcy court found that the department committed such violation, an act that could constitute an obstruction of the bankruptcy proceedings; and
bullet Attempts to change Inslaw’s Chapter 11 bankruptcy, for the company’s reorganization, into a Chapter 7 bankruptcy, for the company’s liquidation. Inslaw says that the department unsuccessfully attempted to have an official named Harry Jones detailed from the US Trustee’s office in New York to Washington to take over the Inslaw bankruptcy to get Inslaw liquidated. Inslaw also says unsuccessful pressure was exerted by departmental official Thomas Stanton on US Trustee William White to convert the bankruptcy case into a Chapter 7 liquidation.
The PIS says it will examine some of the allegations, but in the end it will not open a formal preliminary investigation (see February 29, 1988). [US Congress, 9/10/1992]

Entity Tags: William White, Inslaw, Inc., Harry Jones, Edwin Meese, Lowell Jensen, US Department of Justice, Public Integrity Section, Thomas Stanton

Category Tags: Internal DoJ Investigations

The Bankruptcy Court for the District of Columbia awards $8 million in damages to Inslaw in the dispute over the Justice Department’s use of the enhanced PROMIS software. The decision follows on from a ruling by the court that the department had violated Inslaw’s automatic stay bankruptcy protection rights by using and copying an enhanced version of Inslaw’s PROMIS software (see September 28, 1987). The award consists of $6.8 million in actual and punitive damages, as well as $1.2 million in attorneys’ fees. [US Congress, 9/10/1992]

Entity Tags: Bankruptcy Court for the District of Columbia, US Department of Justice, Inslaw, Inc.

Category Tags: Legal Proceedings

The Justice Department appeals an adverse ruling by the Bankruptcy Court for the District of Columbia in its dispute with Inslaw (see September 28, 1987). The main grounds of the appeal include the following claims:
bullet The bankruptcy court judge appeared to be biased and should have recused himself. In addition, he used the bankruptcy proceedings to find culpability by the government;
bullet Inslaw did not prove that automatic stay protection provisions had been violated;
bullet The bankruptcy court lacked jurisdiction over Inslaw’s claim because the department had not waived its immunity from monetary judgements against the United States;
bullet The dispute is really a contract dispute, not a bankruptcy argument, and should therefore have been heard by the Department of Transportation Board of Contract Appeals;
bullet The court exceeded its authority in the field of damages, and no attorney fees should have been awarded.
The appeal court will find for Inslaw (see November 22, 1989), although its ruling will later be overturned (see May 7, 1991). [US Congress, 9/10/1992]

Entity Tags: US District Court for the District of Columbia, Inslaw, Inc., US Department of Justice

Category Tags: Legal Proceedings

The Public Integrity Section (PIS), a Justice Department oversight component, decides not to open a preliminary investigation of the Inslaw affair over the department’s alleged misappropriation of PROMIS software (see February 1988). The decision is communicated in a memo drafted by William F. Weld, the assistant attorney general for the department’s criminal division, of which the PIS is a part. The PIS finds that at least some of the people Inslaw complains about, including Attorney General Edwin Meese, former Deputy Attorney General Lowell Jensen, and Deputy Attorney General Arnold Burns, are appropriate targets of an investigation and that Inslaw is generally a credible source for allegations. However, according to Weld, the information Inslaw provides is not specific enough to constitute grounds to begin a preliminary investigation of the need for an independent counsel. This is because the PIS regards the facts Inslaw presented as unsupported speculation that the officials were involved in a scheme to get the enhanced PROMIS software. Therefore, the review should be closed “due to lack of evidence of criminality.” The House Judiciary Committee will be critical of the PIS’s finding, calling its investigation “shallow and incomplete,” and saying the department appeared to be “more interested in constructing legal defenses for its managerial actions rather than investigating claims of wrongdoing which, if proved, could undermine or weaken its litigating posture.” [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, House Judiciary Committee, William F. Weld, Inslaw, Inc., Lowell Jensen, Public Integrity Section, Arnold Burns, Edwin Meese, Criminal Division (DoJ)

Category Tags: Internal DoJ Investigations

A news reporter tells George Bason, a bankruptcy judge who found in favor of Inslaw in a dispute over the alleged theft of enhanced PROMIS software (see September 28, 1987), that his failure to be reappointed to the bench was because of pressure from the Justice Department. According to the House Judiciary Committee, Bason says that the reporter has “excellent contacts and sources in the department.” Bason will say the reporter suggests his removal from the bench could have been procured as follows: “The district judge chairperson of the Merit Selection Panel [Judge Norma Johnson, who was crucial to his non-reappointment (see December 15, 1987)] could have been approached privately and informally by one of her old and trusted friends from her days in the Justice Department. He could have told her that I was mentally unbalanced, as evidenced by my unusually forceful ‘anti-government’ opinions. Her persuasive powers coupled with the fact that other members of the panel or their law firms might appear before her as litigating attorneys could cause them to vote with her.” The reporter also tells Bason that a high-level department official has boasted to him that Bason’s removal was because of his rulings on the Inslaw affair. [US Congress, 9/10/1992]

Entity Tags: Bankruptcy Court for the District of Columbia, Norma Johnson, George Bason

Category Tags: Legal Proceedings

The Office of Professional Responsibility (OPR), an oversight unit at the Justice Department, issues a report on the Inslaw affair over the department’s alleged theft of enhanced PROMIS software. The report finds that allegations of bias made by Inslaw and seconded by a bankruptcy court (see September 28, 1987) against departmental officials are unsupported. Inslaw had questioned the performance of former Attorney General Edwin Meese, former Deputy Attorney General Lowell Jensen, former Deputy Attorney General Arnold Burns, and others. The OPR says that the court’s findings on misconduct by department officials are “clearly erroneous.” In addition, the report says: “There is no credible evidence that the department took or stole Inslaw’s enhanced PROMIS by trickery, fraud, and deceit. Additionally, we have found no credible evidence that there existed in the department a plot to move to convert Inslaw’s Chapter 11 bankruptcy to one under Chapter 7 of the bankruptcy code.” The House Judiciary Committee will be extremely critical of this investigation, commenting, “During its investigation OPR chose to ignore the court’s findings and conclusions that there was bias against Inslaw at the department.” In addition, the committee will say that the OPR looked at the bias allegations in isolation and “incredibly” did not examine the merits of the contract dispute, meaning its conclusions on the taking of PROMIS and the type of bankruptcy were “gratuitous,” especially as Burns had told it the department agreed Inslaw owned the enhancements it made to PROMIS (see August 11, 1982). The committee will also point out that the OPR’s deputy counsel, Richard M. Rogers, said he was recused from the investigation because of his association with Burns, although he was present when Meese provided a sworn statement. In this context, the committee will highlight problems found by the Government Accountability Office with OPR around this time (see February 7, 1992). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Office of Professional Responsibility, Richard M. Rogers, Inslaw, Inc., Arnold Burns, Edwin Meese, Lowell Jensen, House Judiciary Committee

Category Tags: Internal DoJ Investigations

Elliot Richardson, an attorney acting for the software company Inslaw, writes to Attorney General Richard Thornburgh about the dispute with the Justice Department over the department’s alleged misappropriation of enhanced PROMIS software. Richardson complains about a review of the case by the Public Integrity Section (PIS), an oversight component at the department, which came down against Inslaw’s claims (see February 29, 1988). He says that there is a conflict of interest because the department is defending itself against a civil action by Inslaw while at the same time investigating itself over the allegations that form the basis of the action. If the internal investigation found wrongdoing by the department, this would destroy the department’s case in court. His view is that the department has given priority to defending itself against the civil action, not the criminal investigation of its own wrongdoing. Richardson adds that no one from the PIS has contacted him, Inslaw counsel Charles Work, some of the witnesses in the case, or Inslaw’s owners. Despite this, the owners provided the PIS with the names of 30 people who had information relevant to the investigation in December 1988. Therefore, Richardson concludes that the only solution is for the department to appoint an independent counsel. [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Elliot Richardson, Inslaw, Inc., Public Integrity Section, Richard Thornburgh

Category Tags: Internal DoJ Investigations

Charles Work, counsel for the software company Inslaw, writes to the Justice Department over the department’s alleged misappropriation of enhanced PROMIS software. Work says that an investigation of the case by the Public Integrity Section, an oversight component at the department, is deficient, and he describes specific problems with it (see February 29, 1988). However, the department does not re-open the inquiry. [US Congress, 9/10/1992]

Entity Tags: Charles Work, Inslaw, Inc., Public Integrity Section, US Department of Justice

Category Tags: Internal DoJ Investigations

The US District Court for the District of Columbia upholds a bankruptcy court ruling in favor of Inslaw. The ruling concerned the dispute over the PROMIS software between Inslaw and the Justice Department, which was found to have violated bankruptcy protection provisions (see September 28, 1987 and February 2, 1988), but had appealed (see Between February 2, 1988 and November 22, 1989). Judge William Bryant finds that the department knew an enhanced version of PROMIS was Inslaw’s central asset, that ownership of the software was critical to the company’s reorganization in Chapter 11 bankruptcy, and that the department’s unilateral claim of ownership and its installation of the enhanced version in offices around the United States violated automatic stay bankruptcy provisions in multiple ways. In addition, Bryant agrees with the bankruptcy court’s conclusion that the department never had any rights to the enhanced version and that “the government acted willfully and fraudulently to obtain property that it was not entitled to under the contract.” In addition, when Inslaw suggested mechanisms to determine whether the private enhancements had been made, the government rejected them, and “when asked to provide an alternative methodology that would be acceptable, the government declined.” The department could have used established procedures to get relief from the automatic stay provisions, but simply chose not to do so. Bryant, who also finds that the department tried to convert Inslaw’s bankruptcy to Chapter 7 liquidation, adds, “What is strikingly apparent from the testimony and depositions of key witnesses and many documents is that Inslaw performed its contract in a hostile environment that extended from the higher echelons of the Justice Department to the officials who had the day-to-day responsibility for supervising its work.” Finally, Bryant finds that, as the case was grounded in bankruptcy law, the bankruptcy court was an appropriate forum to hear the dispute and it did not have to be submitted to the Department of Transportation Board of Contract Appeals, an arena for contract disputes. Although most of the damages awarded are upheld, as Bryant finds the bankruptcy court assessed damages based on the evidence it obtained, he reduces compensatory damages by $655,200.88. [US Congress, 9/10/1992]

Entity Tags: William Bryant, US Department of Justice, Inslaw, Inc., US District Court for the District of Columbia

Category Tags: Legal Proceedings

A US District Court rules that Attorney General Richard Thornburgh does not have to appoint a special prosecutor in the Inslaw affair. Inslaw’s attorney Elliot Richardson had filed the case because of a dispute with the Justice Department over allegations that the department had stolen a version of the PROMIS database and search application from the company. However, the court rules against Inslaw, stating that a prosecutor’s decision not to investigate—“no matter how indefensible”—cannot be corrected by any court. [Wired News, 3/1993]

Entity Tags: US Department of Justice, Inslaw, Inc., Elliot Richardson, Richard Thornburgh

Category Tags: Legal Proceedings, Internal DoJ Investigations

The Justice Department asks an appellate court to consider its dispute with Inslaw over the enhanced PROMIS software for the Appellate Mediation Program. The program, which has been running for about two years, is intended to benefit parties to a dispute by providing a forum which encourages cases to be settled, or at least the resolution or simplification of some of the issues, through an independent and neutral mediator. However, the success of such attempts hinges on their confidentiality, as cases are not to be shared with judges or anyone outside the relevant court. [US Congress, 9/10/1992] Despite this, the mediation attempts will fail when news of them is leaked to the Washington Post (see October 1, 1990).

Entity Tags: Inslaw, Inc., US Department of Justice

Category Tags: Legal Proceedings

Former Attorney General Edwin Meese is interviewed by the House Judiciary Committee about the Inslaw affair. He says that he cannot recall any discussions with former Justice Department official Lowell Jensen about office automation or case tracking at the department. He adds that if there were such a discussion, it would have been casual conversation. [US Congress, 9/10/1992] However, Jensen previously said he discussed the “whole Inslaw matter” with Meese (see June 19, 1987).

Entity Tags: Inslaw, Inc., Lowell Jensen, Edwin Meese, House Judiciary Committee

Category Tags: Origin of Dispute, Oversight by Congress

Charles Hayes, a surplus computer dealer, claims he has purchased computers with PROMIS software installed on them from the US Attorneys’ Office for the Eastern District of Kentucky. Hayes, who the House Judiciary Committee will say has “alleged ties to both United States and foreign intelligence communities,” says that the Harris-Lanier word processing equipment he purchased came with 5 1/4-inch computer disks and he believes these disks contain the enhanced version of the PROMIS software. When the committee investigates, the Justice Department refuses to provide some computer equipment related to these allegations (see February 12, 1991), but the disks turn out not to contain the software (see February 13, 1991). (However, the computer equipment Hayes purchased does contain sensitive information that should not have been disclosed, including grand jury material and information regarding confidential informants.) Hayes will also make a number of other allegations about PROMIS. According to an October 1990 memo drafted by William Hamilton, owner of the company that developed PROMIS, Hayes told him he can identify 300 locations where the software has been installed illegally by the government. In addition, a businessman named Earl Brian allegedly sold the software to the CIA in 1983 for implementation on computers purchased from Floating Point Systems and what the CIA called PROMIS Datapoint. Brian has supposedly sold about $20 million of PROMIS licenses to the government. Hayes will later make the same claims in person to the committee on numerous occasions, adding that he has received information from unnamed sources within the Canadian government saying that Brian sold the PROMIS software to the Canadian government in 1987. The committee will say that he makes “numerous promises” that confirming documentation will be provided by unnamed Canadian officials. However, on August 16, 1991, Hayes will say the Canadian officials have decided not to cooperate with the committee. In its final report, the committee will call the allegations “intriguing,” but point out that Hayes “has not provided any corroborating documentation.” [US Congress, 9/10/1992]

Entity Tags: William Hamilton, Charles Hayes, Central Intelligence Agency, House Judiciary Committee, Earl Brian

Category Tags: Oversight by Congress, Use Outside Justice Department

The Washington Post reports that the Justice Department has asked an appeals court to consider its dispute with Inslaw over enhanced PROMIS software for mediation. The request was made several months earlier (see June 28, 1990), but the process requires confidentially, so the leak forces Inslaw to withdraw and ends the mediation attempts. The House Judiciary Committee will comment that the leak was “completely contrary to the standards of the Appellate Program.” The committee will add: “It is difficult to understand the department’s strategy by this action. It may be that the department wanted to maintain the facade of working diligently to settle a sticky contract dispute while working behind the scenes to sabotage it and keep pressure on Inslaw by forcing it to expend additional resources on legal support during the mediation process. If this is the case, the department was successful. But the department also succeeded in maintaining a near-flawless record of seeking delay over resolution and raising the level of suspicion about its motives to a point where the public trust in the untarnished pursuit of justice is subject to grave doubts.” [US Congress, 9/10/1992]

Entity Tags: Inslaw, Inc., House Judiciary Committee, US Department of Justice

Category Tags: Legal Proceedings

The US Justice Department appeals an adverse decision of the US District Court for the District of Columbia in the dispute with Inslaw over the alleged theft of the enhanced PROMIS application (see November 22, 1989). The department raises some of the same issues previously raised in its appeal of a bankruptcy court ruling to the District Court and requests a reversal on the basis of the facts found in the bankruptcy court, which it says made “clear errors.” In addition, it argues:
bullet That its use of enhanced PROMIS did not violate automatic stay bankruptcy protection, so the argument should not have been in the bankruptcy court, but before the Department of Transportation Board of Contract Appeals under the Contract Disputes Act;
bullet That since no motion was filed to convert Inslaw from a chapter 11 bankruptcy to a chapter 7, there was no violation of the automatic stay protection in this respect;
bullet That the department has not filed a claim, so it is still entitled to sovereign immunity; and
bullet That damage awards for violation of the automatic stay can only be paid to individuals, not corporations.
The department will be successful and the District Court ruling will be overturned (see May 7, 1991). [US Congress, 9/10/1992]

Entity Tags: US Department of Justice, Inslaw, Inc., US Court of Appeals for the District of Columbia

Category Tags: Legal Proceedings

A Canadian government official says that Canada is using the PROMIS software, according to Inslaw owners William and Nancy Hamilton. The Hamiltons pass the information on to the House Judiciary Committee, which is investigating allegations that the US Justice Department has misappropriated an enhanced version of the software from Inslaw and passed it on to other governments. The official, Marc Valois of the Canadian Department of Communications, apparently says that PROMIS is being used to support 900 locations around the Canadian government. [US Congress, 9/10/1992] Another Canadian official will soon make a similar statement (see January 1991), but both he and Valois will later say they were not referring to Inslaw’s PROMIS, but to a product of the same name from a different company (see March 22, 1991).

Entity Tags: William Hamilton, Nancy Hamilton, House Judiciary Committee, Department of Communications (Canada), Marc Valois

Category Tags: Use Outside Justice Department, Oversight by Congress

The House Subcommittee on Economic and Commercial Law holds a hearing about the failure of Attorney General Richard Thornburgh to provide full access to all documents and records about the Inslaw case. At the hearing, Inslaw owner William Hamilton and its attorney Elliot Richardson air their complaints about an alleged criminal conspiracy in the Justice Department’s handling of a contract with Inslaw and its alleged theft of an enhanced version of the PROMIS application. Steven Ross, the general counsel to the clerk of the US House of Representatives, refutes the Justice Department’s rationale for withholding documents related to possible wrongdoing by its officials involved with the Inslaw contract. In addition, Government Accountability Office representatives describe deficiencies in the Justice Department’s Information Resources Management Office and its administration of data processing contracts.
Bason's Allegations - Judge George Bason, a bankruptcy judge who had found in favor of Inslaw in a dispute with the department (see September 28, 1987), testifies that he believes his failure to be reappointed as bankruptcy judge was the result of improper influence on the court selection process by the department because of his findings. Bason cites information provided to him by a reporter (see May 1988) and negative statements about him by departmental employees (see June 19, 1987 and June 1987 or Shortly After). After investigating these allegations, the committee will find: “The committee could not substantiate Judge Bason’s allegations. If the Department of Justice had influence over the process, it was subtle, to say the least.” Bason will point out that Norma Johnson, the judge who chaired the meeting at which he was not reappointed (see December 15, 1987), had previously worked with departmental official Stuart Schiffer, who was involved in the Inslaw case. However, the committee will comment that it has “no information that Judge Johnson talked to Mr. Schiffer about Inslaw, Judge Bason, or the bankruptcy judge selection process.”
Thornburgh's Reaction - Following this hearing, Thornburgh agrees to cooperate with the subcommittee, but then fails to provide it with several documents it wants. [US Congress, 9/10/1992]

Entity Tags: Steven Ross, William Hamilton, Richard Thornburgh, Government Accountability Office, Elliot Richardson, George Bason, House Subcommittee on Economic and Commercial Law

Category Tags: Oversight by Congress, Legal Proceedings

The CIA says that it does not have the PROMIS database and search application (see Mid-1970s). The statement is made in response to a letter sent to CIA Director William Webster by the House Judiciary Committee on November 20 asking him to help them “by determining whether the CIA has the PROMIS software.” In response the CIA states, “We have checked with Agency components that track data processing procurement or that would be likely users of PROMIS, and we have been unable to find any indication that the [CIA] ever obtained PROMIS software.” However, information contradicting this will subsequently emerge. For example, a retired CIA official whose job it is to investigate the Inslaw allegations internally will tell Wired magazine that the Justice Department gave PROMIS to the CIA: “Well, the Congressional committees were after us to look into allegations that somehow the agency had been culpable of what would have been, in essence, taking advantage of, like stealing, the technology [PROMIS]. We looked into it and there was enough to it, the agency had been involved.” However, the official will say that when the CIA accepted PROMIS, it did not know that there was a serious dispute about the Justice Department’s ownership of the software. [Wired News, 3/1993]

Entity Tags: William H. Webster, House Judiciary Committee, Central Intelligence Agency, US Department of Justice

Category Tags: Use Outside Justice Department

A second Canadian government official says that Canada is using the PROMIS software, according to Inslaw owners William and Nancy Hamilton. The Hamiltons pass the information on to the House Judiciary Committee, which is investigating allegations that the US Justice Department has misappropriated an enhanced version of the software from Inslaw and passed it on to other governments. The official, Denis LaChance of the Canadian Department of Communications, apparently says that PROMIS is being used by the Royal Canadian Mounted Police to support its field offices. [US Congress, 9/10/1992] Another Canadian official had previously made a similar statement (see November 1990), but both he and LaChance will later say they were not referring to Inslaw’s PROMIS, but to a product of the same name from a different company (see March 22, 1991).

Entity Tags: Nancy Hamilton, Denis LaChance, House Judiciary Committee, William Hamilton, Department of Communications (Canada)

Category Tags: Use Outside Justice Department, Oversight by Congress

Juval Aviv, an Israeli businessman resident in the US, makes allegations to the House Judiciary Committee about the distribution of PROMIS software. Aviv, who claims to be a former member of Mossad, says he can provide information that a businessman named Earl Brian sold the enhanced version of the PROMIS software to US government agencies outside the Justice Department, including the CIA, NSA, NASA, and the National Security Council. Aviv also claims Brian sold the software to Interpol in France, the Israeli Air Force, and the Egyptian government, the latter through the foreign military assistance program. He also says the software was converted for use by both the United States and British Navy nuclear submarine intelligence data base. Aviv says there are witnesses and documents to corroborate his allegations, but refuses to repeat these claims under oath or provide any further information. These charges will be mentioned in the committee’s final report on the Inslaw affair, but the committee will not endorse them. [US Congress, 9/10/1992] Aviv previously collaborated on the book Vengeance, which purports to describe Mossad’s assassination campaign after a terrorist attack at the 1972 Munich Olympics. The book will later be made into a film, Munich, by Steven Spielberg. However, intelligence writers Yossi Melman and Steven Hartov will call the book a “Walter Mitty fabrication,” adding: “[O]ur investigations show that Aviv never served in Mossad, or any Israeli intelligence organisation. He had failed basic training as an Israeli Defence Force commando, and his nearest approximation to spy work was as a lowly gate guard for the airline El Al in New York in the early ‘70s.” [Guardian, 1/17/2006]

Entity Tags: Yossi Melman, Juval Aviv, Earl Brian, House Judiciary Committee, Steven Hartov

Category Tags: Oversight by Congress, Use Outside Justice Department

Ari Ben-Menashe, a former employee of an Israeli intelligence agency, says he is willing to testify before the House Judiciary Committee in its investigation into the alleged theft of PROMIS software. In return, however, he asks the committee to arrange an extension for his US visa, which is about to expire, and to provide him with immunity from any prosecution. The immunity is to relate to information and documents he allegedly possesses regarding the illegal distribution and sale of an enhanced version of the software by businessman Earl Brian to the Israeli government. However, the committee refuses the request, and Ben-Menashe will later provide a sworn statement with no conditions (see May 29, 1991). [US Congress, 9/10/1992]

Entity Tags: House Judiciary Committee, Ari Ben-Menashe

Category Tags: Oversight by Congress, Use Outside Justice Department

The Justice Department refuses to provide the House Judiciary Committee with some equipment and documentation relating to its alleged theft of an enhanced version of the PROMIS software. The refusal is in response to a request for access to the equipment and documents sent by the committee in November, following allegations by used computer dealer Charles Hayes (see August 1990). However, W. Lee Rawls, the assistant attorney general for the Office of Legislative Affairs, says that although the committee can see the equipment and examine the documents that came with it based on a civil writ of possession, the committee cannot operate the equipment. Nor can the department provide a printout of the information contained in the equipment, as it does not have such a printout and “disclosure of this information would compromise an ongoing criminal investigation.” In addition, the committee cannot have access to some documents in civil division files, as providing them could harm a pending criminal investigation relating to the matter. These documents are non-public witness statements, attorneys’ notes about the statements and conversations with prosecutors, draft pleadings and memoranda, and other material, as well as exhibits sealed by a court. [US Congress, 9/10/1992]

Entity Tags: W. Lee Rawls, House Judiciary Committee, Charles Hayes, US Department of Justice, Office of Legislative Affairs

Category Tags: Oversight by Congress

Charles Hayes, a computer dealer who claims a US attorney’s office has mistakenly given him a copy of the PROMIS application (see August 1990), hands over to the House Judiciary Committee disks he says contain the software. Hayes also makes a sworn statement about his assertions, saying he thinks PROMIS was copied onto the disks from the original media by personnel at the attorney’s office. However, when the committee examines the disks, it finds only training programs for the computers. In addition, William Hamilton, the owner of the company that developed the application, tells the committee it is “highly implausible” that the 5 1/4-inch disks could contain the enhanced version of the software. He adds that if PROMIS was being used on the computers Hayes purchased, it would have to be the public domain version, which is owned by the Justice Department, not the enhanced version owned by Inslaw. [US Congress, 9/10/1992]

Entity Tags: House Judiciary Committee, Charles Hayes, William Hamilton

Category Tags: Oversight by Congress

A Canadian government official tells the US House Judiciary Committee that Canada is reluctant to cooperate with the committee’s inquiry into the alleged theft of a version of the PROMIS software by the US Justice Department and its subsequent passage to Canada. This is in response to a letter sent on February 26, 1991, in which the committee asked Canadian Ambassador Derek Burney for help determining what version of the software the Canadian government was using. The official, Jonathan Fried, counselor for congressional and legal affairs at Canada’s Washington embassy, says that “Canadians had been burned once before by Congress,” and imposes conditions on Congressional questioning of Canadian officials. The conditions are that interviews of individuals be conducted only in the presence of lawyers for the relevant departments and their superiors and that no Canadian public servants would be witnesses in any foreign investigative proceedings. The committee accepts these conditions in mid-March, and identifies the two Canadian officials it wants to speak to (see November 1990 and January 1991). [US Congress, 9/10/1992]

Entity Tags: Derek Burney, Jonathan Fried, House Judiciary Committee

Category Tags: Use Outside Justice Department, Oversight by Congress

Shortly before the US House Judiciary Committee interviews two Canadian officials who have said Canada has the allegedly stolen PROMIS software (see November 1990 and January 1991), the Canadian government contacts the committee and imposes a further condition on the interviews. The Canadians had already insisted the officials be accompanied by minders (see Shortly After February 26, 1991), but now says that, in addition, they will only answer questions specifically related to the software. They will not answer questions about any allegations that four software programs that may have been acquired by the Canadian government may be derivates of the PROMIS software. If the committee wants information about such alleged derivatives, it will have to submit a written request. [US Congress, 9/10/1992]

Entity Tags: House Judiciary Committee

Category Tags: Use Outside Justice Department, Oversight by Congress

Two Canadian officials who had previously said that the Canadian government was using Inslaw’s PROMIS software now tell the US House Judiciary Committee that it is not. In an interview with the committee, officials Denis LaChance and Marc Valois of the Canadian Department of Communications say that they had incorrectly identified software used by the Canadians as being Inslaw’s PROMIS (see November 1990 and January 1991), whereas in fact it was actually project management software from a company called the Strategic Software Planning Corporation that is also called PROMIS. Despite an objection by the Canadians to them being asked about PROMIS derivatives in Canada (see Before March 22, 1991), the two officials also say they do not use or know of a derivative of Inslaw’s PROMIS in Canada. The president of the Strategic Software Planning Corporation will later acknowledge in a sworn statement to committee investigators that his company had sold a few copies of his firm’s PROMIS software to the Canadian government in May 1986. [US Congress, 9/10/1992]

Entity Tags: Denis LaChance, House Judiciary Committee, Marc Valois, Department of Communications (Canada)

Category Tags: Use Outside Justice Department, Oversight by Congress

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