Broker, Trader, Lawyer, Spy (31 page)

1. How Senator Frist’s decision leaked to Wall Street traders was first revealed by the author in “Washington Whispers to Wall Street,”
   Business Week
   , December 26, 2005. It can be found online at www.businessweek.com/magazine/content/05_52/b3965061.htm.
   

C
HAPTER
11: I
S
T
HIS A
G
REAT
C
OUNTRY, OR
W
HAT
?

1. “German Corporate Spying Scandal Widens,” Spiegel Online International, June 9, 2008. Available online at www.spiegel.de/international/business/0,1518,558510,00.html.
   
2. “Germany’s Corporate Spying Scandal,” Time.com, May 27, 2008. Available online at www.time.com/time/business/article/0,8599,1809679,00.html?xid=feed-cnn-topics.
   
3. The e-mails between Hakluyt and Enron can be found online at www.enronexplorer.com.
   
4. Owen Matthews and Anna Nemtsova, “A Chill in the Moscow Air,”
   Newsweek
   , February 6, 2006. Available online at www.newsweek.com/id/57048.
   
5. Trident Group was first described by the author in “I Spy—for Capitalism,”
   Business Week
   , August 13, 2007. It can be found online at www.businessweek.com/magazine/content/07_33/b4046052.htm.
   

E
PILOGUE
: I
N FROM THE
C
OLD

1. Tim Weiner,
   Legacy of Ashes: The History of the CIA
   (Garden City, N.Y.: Doubleday, 2007), p. 65.
   
2. Michael Calderone, “Two WSJ Reporters Launch New Company,” Politico. com, March 23, 2009. Blog available online at http://www.politico.com/blogs/michaelcalderone/0309/WSJ_reporters_start_company.html?showall.
   
3. “Rock Star: That’s Not Me Drinking on Google,” CNN.com, March 28, 2009.
   

Note: Entries in this index, carried over verbatim from the print edition of this title, are unlikely to correspond to the pagination of any given e-book reader. However, entries in this index, and other terms, may be easily located by using the search feature of your e-book reader.

Abbott, Jim, 112–14

Abramoff, Jack, ix, 283

Abraxas, 44

Adams Express Company, 40–42

Alfa Bank, 5, 16, 21–22

Alfa Group Consortium, 2–3, 3n, 5

Allan Pinkerton
(Mackay), 32n, 45

Allied Waste, 168

Alperstein, Leslie, 247, 248

Analysis Corporation, The, xiii

Analysis of intelligence

Arcelor Mittal steel prices, 243–44

political intelligence and, 246–48

USG Corporation stock, 246–47

Verbatim Advisory Group, 243–46

Anderson, Frank, 259

Anderson, Jack, 108–9

Annapolis Group, 167

Arcadia Partners, 185

Arcelor Mittal Company, 243–44

Arthofer, Frank, 149

Astor, John Jacob, 70–71

Attac, 170

Atticus Capital, 26

Audio surveillance, bugging, and wiretaps, 36n, 63–74.
See also
Broady, John; Shimon, Joseph

commodities trading and, 63

corporate espionage, 69–70

divorce work, 70–71

firms specializing in, 151–52, 160

Hal Lipset and technology, 71–74

as labor intensive, 65

laser microphone, 227

legality of, 132

Manhattan telephone office, 67–71, 69n

members of Congress, 64, 66

NSA global wiretapping, 129

Supreme Court building, 63–64

sweeping for, 102, 235–36

Aviator, The
(film), 66n

Background checks, 7, 92–93, 102, 168, 262, 263

Bacon, Sir Ranulph, 105

Bahamas

background checks, 92–93

Britannia Beach Hotel, 100

gambling corruption, 105n

Howard Hughes living in, 100–101

Peloquin and, 92–93, 99n, 101–2, 105n

Shah of Iran in, 101–2

Bailey, Joshiah, 64–65

Baird, Brian, 247–48

Baker, Jamie, 188–89

Baker, Mike, 5, 10–11, 14–15, 18–21, 23–24

Bank of America, 174

Bara, Thomas, 112–13

Bara Hutton Group, 112–13

Barakett, Timothy, 26

Barbour Griffith and Rogers

clients of, 14, 16–17, 21

Diligence and, 5, 8, 14–17, 21, 22

“Project Yucca” and, 22–23

Barrick Gold, 26

Barron’s
, 187

Beard, Dita, 108–9

Beckett, Richard, 142, 166, 167

Beckett Brown International

background of operatives, 143–44, 155–56

clients of, 140–41, 167–68

collapse of firm, 166–69

Greenpeace infiltrated by, 141

history of company, 140–43, 143n

John Dodd and, 141–43, 166–67

Nestlé and, 151–69, 161n

surveillance by, 140, 141, 151–52, 155–58, 162–66

Belisle, David, 94

Belova, Natalya, 3n

Benöhr, Johann, 254, 261–64

Bermuda, 1–9, 5n, 22

Bernstein, Carl, 118, 189n

Bertain, William, 131–32

Blackwater (now Xe), 44, 58

Boesky, Ivan, 121, 131, 131n, 134

Boggs, Patton, 152–53, 158

Bonaparte, Charles, 61–62

Bond, James, 270n

Boon, Levi, 34

Booz Allen Hamilton, 44

Bosworth, Stephen, 260

Boycan, Patsy, 179, 188

Boyle, James, 52

Bradlee, Ben, 102

Breach
(film), 275n

Brender, Mark, 206, 208

Brennan, John, xii–xiii

Bresett, David, 144

Brewster, Owen, 66

Bristol-Myers, 69, 70

Britain

former elected officials and private-sector investigation, 4, 16

London as spy center, 221–22, 228, 233–34

London surveillance cameras, 239

MI5, ix, x, 2, 7, 11, 234, 235

SIS or MI6, 258, 269

veteran intelligence and military officers in private-sector investigation, ix, x, 2, 4, 7, 11, 105, 221, 234, 235, 258, 269

British Petroleum (BP), 273–74

British Virgin Islands (BVI), 5n

Broady, John, 68–71, 69n

Brown, Art, 259, 260n

Brown, John, 43

Brown Derby, Los Angeles, 95

Buckham, James, 149

Buffett, Warren, 193

Burrough, Bryan, 134

Burrus, Chip, 9

Burt, Gayle, 15, 20

Burt, Richard, 14–16

Burundi, 256–57

Bush, George W., 17, 181, 265

Business Intelligence Advisors (BIA), 173–99

Cascade Investment and, 193–94

CIA and, 173, 179–80, 183, 186, 198–99

founding of, 181, 186

Goldman Sachs and, 191–92

Southwest Airlines analysis, 188–91

undercover operations, 196

UTStarcom analysis, 173–79

Business Week
, 123

Cadence Industries, 117–18

Cannistraro, Vincent, 143–44, 144n

Cargo, Bob, 155

Carlson, Don, 186–87, 191, 198, 199

Carlton Hotel, Washington, D.C., 66

Carlucci, Frank, 143

Carlyle Group, 4, 16, 140–41, 142–43, 168

Carnegie, Phillips Steel, 56–57, 56n

Carroll, James, 54

Carroll, Phil, 271

Carter, Jimmy, 101, 214

Cascade Investment, LLC, 193–94

Cassidy, Butch, 40

Castro, Fidel, 95–97, 97n

Central Intelligence Agency (CIA), 255

banking transactions traced by, 129

BIA and, 173, 174, 179–80, 197, 198–99

changes in since 1980s, 10–11

founding of, 62

GeoEye and, 205–6, 217

Hamilton Trading Group and, 274–77

intelligence contractors and, 44, 95

interrogation techniques, 174, 177, 179, 181, 187

Langley headquarters, 144

moonlighting program, 180, 197, 198–99

pay scale, 197–98

plot to assassinate Castro, 95–97, 97n

post-war drug experiments, 281

psychological profiling, 249

TDI and United Arab Emirates, 268

Veracity and, 253, 255–56, 258–59

veterans in private-sector investigation, ix, x, xii–xiii, 2, 4, 5, 10, 16, 128, 143–44, 179, 180, 183, 194, 195, 198, 217, 254, 264–65, 266, 272, 274

Charlie and the Chocolate Factory
(Dahl), 162

Chase, Gary, 190

Cheney, Dick, 140

Chesapeake Strategies, 167

Chevron, 248

China

CNOOC vs. Chevron, 248

political intelligence firms, 248–49

Churchill, Winston, 270n

Citibank, 20

Clinton, Bill, 16, 125, 258, 282

Clorox Company, 110

Cogswell, Stephen, 164

Columbia University, 20

Commodities trading, 63, 128, 208–12, 209n

Control Risks Group, 262

Conversation, The
(film), 74

Cook, Cheryl, 186

Coppola, Francis Ford, 74

Corio, Ann, 71, 71n

Cornered at Last
(Pinkerton), 39n

Corporate espionage.
See also specific companies; specific individuals

analysis of information, 243–51

audio surveillance, bugging, and wiretaps, 63–74, 227–28

background of operatives, x–xi, xii–xiii, 2, 4, 5, 7, 8–9, 10, 16, 74–75, 85, 86–91, 93–94, 110, 112, 124, 128, 143–44, 149, 155–56, 179, 180, 183, 194, 195, 198, 212, 221, 223, 254, 264–65, 266, 272, 274, 283

business model for, 226

chocolate industry, history, 161–62

chocolate wars, 137–40

collapse of Soviet Union and, 114

corporate intelligence firms, 23, 134, 140–41, 198, 224, 226, 253–80 (
see also
Beckett Brown International; BIA; Hakluyt; Hamilton Trading Group; specific firms; TD International; Trident Group; Veracity)

counterintelligence, 249–51

countersurveillance and, 231–32

customers, typical, 13–14

defensive vs. offensive, 239

Enron energy trading scheme, 17–20

ethics of, xi–xii, 38–39, 56, 82–83, 92–93, 124–25, 130–35, 254, 255, 265, 274–77, 283–84

Foremost-McKesson takeover, 119–20

globalization, xii–xiii, 219, 221–41, 253–80

Hewlett-Packard spying scandal, 4–5

history of capitalism and, 27

insider-trading laws and, 13

“Kroll” and Wall Street, 121–23

leaks and exposure, 9, 69, 74n, 159, 229, 241, 247, 249, 277

Lipset’s investigation of Maris, 76–81

location of firms, xi, 10, 142, 221–22, 233–34, 243, 254–55, 262, 282

number of firms involved in, x

open-source information, 246

Pan American Airways and, 64–65

Pfizer and tetracycline, 69–70

Pinkertons and, 48–55

“Project Yucca,” 1–9

skills of spies in, 13–14, 114

spy satellites, 201–19

surveillance, 221–41

tactical behavior assessment, 173–99

threat assessment, 249–51

typical approach to, example, 11–13

U.S. Congress earmarks and, 159–60

Corporate Risk, 282

Counterintelligence, 249–51

Covington and Burling, 258

Creative Capital, 76–80, 81

Credit Suisse First Boston, 175, 259

Crimes Against Business: A Practical Guide
(Kroll, ed.), 118

Crosby, James, 92, 93, 101, 105n, 111

CSX Corporation, 143

Custer Battles, 58

Dahl, Roald, 162, 162n

DaimlerChrysler, 14

Dalgety, PLC, 138, 155

D’Aniello, Daniel, 142–43

Dart, Kenneth, 279–80

Dash, Sam, 63, 63n, 68

Davies, Harry, 45

Davis, Chester, 94, 94n, 95, 99, 101, 103

Davis Polk and Wardwell, 123

Day, Nick, ix–x, 1–10, 11, 14, 15, 20, 21, 22, 23, 27, 221n

Dearlove, Sir Richard, 258

DeCarlo, Angelo (“Gyp”), 80–81

Deloitte and Touche, 24

Delta Airlines, 14

Deripaska, Oleg, 26

Desert Inn, Las Vegas, 94, 100, 107n

Deutsche Bank, 174

Deutsche Telecom, 262

Devost, Matthew, 282

Diamond International, 119

DiCaprio, Leonardo, 240–41

DigitalGlobe, 204–5, 215, 218

Diligence, LLC, ix–x, 10, 14–27, 258, 282

Dingell, John D., 131–34

Disney, 277

Disney, Walt, 277–78

DLA Piper, 266

Dodd, John, 141–43, 166–69

Donahue, Liam, 185–87

Drexel Burnham Lambert, 121, 122, 131

Dubai, 254, 264–69

Due-diligence investigations, 134, 135, 168, 193–95, 248, 258, 262

Duff, Patricia, 168

Dulles, Allan, 281, 282

Dumpster diving, 154–55

Dunn, Patricia, 5

Durkin, William, 95n

Dyer, Larry, 163–64

Earnest, Peter, 284

Earth Observation Satellite Company (EOSAT), 214

Easton, Maryland, 140, 141, 143, 166–69

Eavesdroppers, The
(Dash), 63, 68

Eisner, Eric, 3n

Eisner, Michael, 3n

Eizenstat, Stuart, 258

E-mail, 40, 227, 233

Enright, Guy, 1–9, 24

Enron, 17–20, 266n, 271–72

Eritrea, 17

Esoteric Ltd., 233–40

Ethical issues, xi–xii

countersurveillance and, 232

Hal Lipset and, 82–83

Kroll Associates and, 130–35

loyalty, 254, 255, 265, 274–77

Pinkerton’s principles, 38–39, 56

political espionage, 124–25

political intelligence and, 247–48

privacy issues, 92–93, 217n, 283–84

surveillance and, 239–40

Executive Action, 282

Exxel Group, 20–21

Eye That Never Sleeps, The
(Morn), 43

Fairfax Group, 282

Fairfield, Pennsylvania, 86

Federal Bureau of Investigation (FBI)

directory of former agents, 112–14

documents passed to from private-sector intelligence, 8–9

Lipset’s investigation of Maris, 76–81

Mafia investigations, 96–97

Maheu, Castro plot, and, 96–97

9/11 attacks investigation, 9

origins, 35n, 62

veterans in private-sector investigation, x, 4, 8–9, 16, 93, 110, 112, 124, 149, 283

Felton, Samuel Morse, 44–45

Ferraro, Bobby, 201–2, 203–4

Finch, Stanley W., 62

Flour Corporation, 271, 271n

Floyd, Mike, 183, 191–92

Fontainbleau Hotel, Miami, 96

Forbes, Steve, 143

Ford, Henry, 102

Foreign Correct Practices Act, 263

Foundation for Electrical Construction, Inc, 135

Fox, Stephen, 255–59