Israeli Spy Companies: Verint and By Richard Sanders ism specialist and military-intelligence had stolen sensitive technology to officer who served 19 years in Turkey, manufacture artillery gun tubes, ob- n the mid-2000s, two Israeli spy Italy, Germany, and Spain. He notes that tained classified plans for a recon- companies (Narus and Verint) were Israel “always features prominently” in naissance system, and passed sensi- Icaught in the centre of a huge scan- the FBI’s annual report, “Foreign Eco- tive aerospace designs to unauthor- dal involving the wiretapping of virtu- nomic Collection and Industrial Espio- ized users. An Israeli company was ally all US phone and mes- nage.” Its 2005 report, he says, stated: caught monitoring a Department of sages. Their mass services “‘Israel has an active program to Defense telecommunications system were used by America’s two largest tel- gather proprietary information to obtain classified information.” ecom companies, AT&T and Verizon. within the US. These collection ac- Another ex-CIA officer who ex- (See AT&T pp.7-8, and Verizon in ta- tivities are primarily directed at ob- pressed grave concerns about Israel’s ble, “CPP Investments,” p.53.) taining information on military sys- spying is Robert David Steele. He said These telecom giants, which to- tems and advanced computing ap- “Israeli penetration of the entire US tel- gether control 80% of the US market, plications that can be used in Isra- ecommunications system means that were turning over all of their custom- el’s sizable armaments industry.’ It NSA’s warrantless wiretapping actually ers’ internet communications and phone adds that Israel recruits spies, uses means Israeli warrantless wiretapping.” call records to the US National Secu- electronic methods, and carries out Jane’s Intelligence Group re- rity Agency (NSA). On hundreds of oc- computer intrusion to gain the infor- ported in 2004 that Israeli intelligence casions, these data transfers were done mation. agencies “have been spying on the U.S. without legal warrants or court orders. “In 1996…the Pentagon’s De- and running clandestine operations This warrantless wiretapping operation fense Investigative Service warned since Israel was established.” was a gargantuan task requiring the col- [US] defense contractors that Israel In 2008, Harry Brandon, a lection, analysis and transfer of data re- had ‘espionage intentions and capa- former FBI deputy director of counter- lating to billions of messages per day. To accomplish this, AT&T employed Verint and Narus have bugged “virtually the the services of an Israeli spy firm called entire American telecom system,” and Narus, while Verizon used a different “wired much of the planet…. Never Israeli spy company, . The technologies of both Ver- before in history have so few people int and Narus have also been absorbed wiretapped so many.” into the spy products of other compa- “[T]he greatest potential beneficiaries nies. For example, Amdocs has inte- grated Narus software into its products, of this marriage between the Israeli while Verisign has incorporated sys- eavesdroppers and America’s increasingly tems from both Verint and Narus into centralized telecom grid, are its “NetDiscovery” service. (See Am- centralized telecom grid, are docs, pp.5-6, and Verisign in table “CPP Israel’s intelligence agencies.” Investments,” p.53.) James Bamford, author of James Bamford, a former ABC News director and journalist who has The Shadow Factory researched intelligence agencies for bilities’ here [in the US] and was ag- intelligence told Congressional Quar- three decades, has reported that: gressively trying to steal military and terly (CQ) magazine that “the Israelis “Verint and Narus are super-intru- intelligence secrets. It also cited a are interested in commercial as much sive – conducting security threat posed by individuals as military secrets.” CQ surmised that on both international and domestic who have ‘strong ethnic ties’ to Is- “One effective espionage tool is form- [US] communications 24/7. What is rael, stating that ‘Placing Israeli na- ing joint partnerships with U.S. comp- especially troubling, but little tionals in key industries … is a tech- anies to supply software and other tech- known, is that both companies have nique utilized with great success.’” nology products to U.S. government extensive ties to a foreign country, Giraldi says that when the Gen- agencies.” This is precisely what Ver- Israel, as well as links to that coun- eral Accounting Office (GAO), the in- int and Narus have done so effectively. try’s intelligence service – a service vestigative arm of Congress, researched But, as Bamford points out, Ver- with a long history of aggressive spying against US arms industries in int and Narus haven’t just bugged “vir- spying against the U.S.” 1996, it said Israel “conducts the most tually the entire American telecom sys- A glimpse into this “long his- aggressive espionage operation against tem,” these “two firms…have also tory” of Israeli intelligence agencies the US of any U.S. ally.” The GAO wired much of the planet…. Never be- targeting the US is discussed by Philip also reported that fore in history have so few people Giraldi, a former CIA counter-terror- “Israeli citizens residing in the U.S. wiretapped so many.” Spring 2012 (Issue # 66) Press for Conversion! 43 Verint’s cofounder, them are several corporate giants that Jacob “Kobi” support Israel’s military, namely, Cisco, Alexander, Hewlett Packard (HP), Honeywell, Sie- chaired its mens and EMC. (See p.19, p.36 and pp.39-40. For Siemens and EMC, see board from table, “CPP Investments,” p.53.) 1994 until 2006 But besides serving big busi- when he fled Verint Systems Inc. ness, Verint also sells spyware to “law to Israel and Verint is a subsidiary of Comverse enforcement, national security, intelli- then Namibia to Technology which is “the world’s lead- gence, and other government agen- evade 36 charges ing provider of …communications in- cies.” Its technology was used by US of conspiracy, tercept and analysis” technology. telecom giant Verizon to fulfil the mass fraud and money Founded in Israel and with half its em- surveillance requests – legal and oth- laundering. ployees based there, Verint’s parent erwise – from the NSA. “[T]he great- company has attracted its fair share of est potential beneficiaries of this mar- mation to Israel.” The leaky technol- people from Israel’s military and intel- riage between the Israeli eavesdroppers ogy was T2S2 tapware “delivered to the ligence communities. and America’s increasingly centralized [Dutch] government in the last few A search of the Business News telecom grid,” says Bamford, “are Is- years by the Israeli company Verint.” website finds the “Executive Profiles” rael’s intelligence agencies.” In 2004, Verint’s mass surveil- of about twenty key Comverse people Besides the US, Verint’s other lance systems were called “a lemon” who had worked for Israel’s military. major government clients include in the Australian media and a parlia- Of these, at least six were in Israeli in- Mexico, Vietnam, Australia and the mentary committee monitoring the gov- telligence. For example, Alon Geva was Netherlands. Government users in the ernment’s Corruption and Crime Com- “an officer at the elite Intelligence unit two latter countries have raised grave mission (CCC) summoned Verint ex- of the Israeli Defense Forces,” Yoav ecutives to a “closed session.” The Shaked “started his career as an officer committee told Verint that they had in the Israeli Defense Force [IDF] In- “some issues” with the “data intercep- telligence Corps,” Chaim Bechor tion” systems being used by “at least “served as a technical officer in the In- six different law enforcement agencies telligence Corps of the IDF,” Uri across Australia.” The MPs said their Kolodny “served over 4 years in …Is- “issues” with Verint included that it raeli Intelligence,” Alon J. Bender was “can access data from overseas but the the “Senior Security Technology con- CCC seems restricted in its ability to sultant on several Israeli government access data.” Verint’s Tel Aviv-based projects (Prime Minister’s Office, IDF representative confirmed: “We some- and Secret Intelligence), and Noam times operate by remote access.” Livnat “served four and a half years in Bamford has called it “unnerv- the Israeli Defense Forces’ prestigious ing” “that Verint can automatically ac- Intelligence Corps ‘Talpiyot’ project.” cess the mega-terabytes of stored and Originally called Comverse real-time data secretly and remotely Infosys, Verint makes electronic sys- concerns about the security of Verint’s from anywhere, including Israel.” tems to monitor, collect and analyse products and particularly their remote Verint’s board of directors has voice, and video communica- control from Israel. For instance, always included former military and in- tions. In reference to Verint’s role in Christopher Ketcham reported that: telligence officers from the US and Is- this trade, Bamford notes that by 2004: “In November 2002, sources in the rael. The most infamous of these is “a large percentage of America’s – Dutch counterintelligence commu- Jacob “Kobi” Alexander, an Israeli en- and the world’s – voice and data nity began airing what they claimed trepreneur who cofounded both Com- communications were passing was ‘strong evidence that the Israeli verse and its off-shoot, Verint. Alexan- through wiretaps built, installed, and secret service has uncontrolled ac- der is a former Israeli intelligence of- maintained by a small, secretive Is- cess to confidential tapping data ficer who chaired Verint’s board from raeli company run by former Israeli collected by the Dutch police and its creation in 1994 until 2006, when military and intelligence officers.” intelligence services.’” he was indicted in the US on 36 charges Verint says its customers include In 2003, a Dutch technology of conspiracy, fraud and money laun- “85 percent of the Fortune 100.” They magazine, c’t, ran an article, “Dutch dering. Leaving the boards of Verint use the company’s products, Verint Tapping Room not Kosher.” It said and Comverse, Alexander evaded US says, “to improve enterprise perform- “[a]ll tapping equipment of the Dutch prosecution by going to Israel. Placed ance and make the world a safer place.” intelligence services and half the tap- on the FBI’s “Most Wanted List,” Although secretive about its clients, the ping equipment of the national police Verint’s disgraced cofounder was even- Verint website divulges a few. Among force…is insecure and is leaking infor- tually arrested (and held very briefly) 44 Press for Conversion! (Issue # 66) Spring 2012 in Namibia, where he is still fighting ment are personified in Carmel Vernia, “a former senior official in Shin Bet, extradition. Despite this, Alexander’s who started at Comverse in 1984 and Israel’s internal security service. Nir current “Executive Profile” on Business was its Chief Operating Officer be- is also the managing director of Per- Week’s website says he has been a Com- tween 1994 and 2000. He became the Say’s financial backer, Athlone Glo- verse “Advisor” “since May 1, 2006.” first Verint CEO in 1999 but was soon bal Security, which counts former Another former Verint board appointed by Israel’s government to be- Mossad chief Ephraim Halevy on its member with a Israeli intelligence come the Ministry of Industry and advisory board.” background is Ronen Nir. Before join- Trade’s Chief Scientist. His responsi- Business Week’s website shows ing Verint’s board, and becoming vice bilities included overseeing the annual that Halevy also sits on the board of president of its Analytics and Commu- distribution of about US$450 million Israel’s Makhteshim Agan, an explo- nications Solutions Division, Nir served in R&D grants to Israel high-tech sives-making subsidiary of one of Is- 13 years in “the Israeli Defense Forces’ companies, including Comverse. rael’s largest holding companies, the elite Intelligence unit.” Nir remains a A 2001 Comverse document Discount Investment Corp. (See p.25.) Lieutenant Colonel in Israel’s In writing about Ver- military reserve forces. Carmel Vernia was int and PerSay, Bamford Other Verint directors Chief Operating Officer has noted that have links to US intelligence of Comverse and CEO “With remote access to agencies and the military in- of Verint. Then, as the internal and interna- dustrial complex. For exam- Israel’s top government tional voice and data com- ple, US Lieutenant General scientist, he oversaw munications of over one Kenneth Minihan joined hundred countries around the grant program that Verint’s board in 2002. Since the world, including the the Vietnam war, this 30-year reimbursed up to , Verint’s veteran of the US Air Force 50% of Comverse’s headquarters in Tel Aviv held many top military intel- R&D expenses. Later, has a capacity rivaled ligence postings. His career he joined the board of only by NSA’s, if not culminated in leading the De- Verint spin off, PerSay. greater, especially when fense Intelligence Agency Its products search for and identify specific coupled with PerSay’s (1995-1996), the National Se- speakers in the vast sea of intercepted messages. voice-mining capability.” curity Agency and the Central In 2004, Verint paid Security Service (1996-1999). states that “we continue to receive sig- US$35 million for the “government sur- Two other US military veterans nificant benefits through reimburse- veillance business” of Israel’s ECtel on Verint’s board are Larry Myers and ment of up to 50% of qualified research Ltd. Verint said this would give it “ad- Victor De Marines. Both have long- and development expenditures” ditional communications interception standing links to MITRE Corp., which through a “grant program administered capabilities for the mass collection and provides for the US by the Office of the Chief Scientist of analysis of voice and data communica- military and intelligence agencies. De the Ministry of Industry and Trade.” tions.” Marines managed MITRE’s Center for After leaving his post as Isra- Yair Cohen, became ECtel’s Integrated Intelligence Systems and el’s Chief Scientist in 2002, Vernia be- chair in 2006. For the five previous oversaw its Intelligence and Electronic came a director of PerSay, an Israeli years, Cohen led Israel’s equivalent of Warfare Systems. While managing MI- company that spun off from Verint in the US . Busi- TRE’s office in Bangkok, Thailand 2000. It received early funding from ness Week’s online biography says “as (1967-1969), he “helped coordinate Poalim Investments, a subsidiary of Brigadier General of the special unit MITRE’s support for [US] Air Force Bank Hapoalim. (See pp.10-11.) Per- 8200, the central military intelligence systems ...on support operations.” De- Say’s speaker recognition technology unit of the Israeli Defense Force,” Marines still serves on an advisory includes voice biometrics systems that Cohen was responsible for “develop- group for the National Reconnaissance search for and identify individual ing state-of-the-art technology and one Office, a US intelligence agency that speakers within the vast sea of inter- of the largest, most complex technol- operates the CIA’s spy satellites. cepted phone calls. Bamford notes that ogy organizations in Israel.” Cohen Dan Bodner, who has been “PerSay is an example of how close was also a director of IDB Group, Verint’s president and CEO since 1994, and interconnected these companies which controls Discount Investment was an army engineer in Israel’s De- are with Israel’s intelligence com- Corp., and Vice President of one of its fense Forces. Another Verint director, munity – a factor of great concern prized holdings, Elron Electronics. Meir Sperling, held executive positions considering how much of their bug- In 2011, Verint acquired an Is- in two Israeli telecom companies, ging equipment is now secretly hard- raeli firm called Rontal Applications Tadiran and ECI, which both serve po- wired into the American telecommu- Ltd. which provides governments and lice and military agencies around the nications system.” businesses with “physical security in- world, including Israel’s armed forces. Bamford goes on to say that formation management solutions.” The Verint’s ties to Israel’s govern- PerSay’s board included Arik Nir, board of this Verint subsidiary has in- Spring 2012 (Issue # 66) Press for Conversion! 45 Narus Inc. The name Narus is aptly derived from the Latin word “gnarus” for “all know- ing.” Calling itself “the leader in real- time traffic intelligence for the protec- tion and management of large [Inter- net Protocol] IP networks,” Narus makes “Semantic Traffic Analysis” software, which “captures comprehen- sive customer usage data.” It also Amiram Levin makes “” sys- In 2011, Verint acquired tems for “tracking and targeting” email This whistleblower revealed Rontal Applications, an and mobile-phone communications. that AT&T used Israel’s Narus Israeli militay firm whose In 2005, computer engineer technology “to look at every board has included retired Mark Klein blew the whistle on AT&T, individual message on the Major General Levin, a former where he had worked for 22 years. Internet and analyze exactly deputy director of the Mossad. Klein then became central to a class- what people are doing.” action lawsuit by the Electronic Fron- cluded Israeli Major General Amiram tier Foundation. The lawsuit exposed authorities in Egypt, , Libya, Levin. During his 35-year military ca- evidence that AT&T had transferred , China and elsewhere. reer, he was the deputy director of Is- vast amounts of data to the NSA using So, for example, when wide- rael’s foreign intelligence agency, the a Narus called the STA spread calls for democracy and an end Mossad (1998-2000). 6400. Klein testified that: to state-sponsored torture and terror Business News online says “In 2003 AT&T built ‘secret rooms’ were fuelling the “Arab Spring” pro- Levin held “senior command positions hidden deep in the bowels of its cen- tests in Egypt, Narus systems were used in Special Ops and in the Tank Corps – tral offices in various cities, hous- to close down much of the internet culminating in the post of Israel’s ing computer gear for a government there. In this way, Egypt’s US-backed Northern Front Commander.” He had spy operation which taps into the military dictatorship benefited from “weapon system development duties” company’s popular WorldNet serv- Narus, an Israeli spy company. and led “strategic weapon development ice and the entire Internet. These in- Narus, says the Israeli newspa- task-forces comprising of military de- stallations enable the government to per Haaretz, “was founded in 1997 by signers & major Israeli defense contrac- look at every individual message on Dr Ori Cohen, Stas Khirman and four tors.” Levin also Commanded “Sayeret the Internet and analyze exactly other guys in Israel.” Its initial fund- Matkal,” Israel’s “elite intelligence and what people are doing.” ing came from an Israeli venture capi- counter-terrorism commando unit.” The law suit ended in 2009 tal fund, Walden Ventures, which has Upon leaving the military, Levin when the US government granted ret- also funded Israeli “homeland security” entered the private sector and joined the roactive immunity to itself and the tel- firms like Camero. boards of several Israeli companies ecom companies for their roles in the Before starting Narus, its key serving the country’s military and in- warrantless wiretapping operations. founders had all worked for VDOnet, telligence agencies. Besides serving Narus systems are also used by an Israeli firm that pioneered internet with Verint’s subsidiary, Rontal, Levin police and intelligence agencies around video streaming. Khirman, who was also joined the advisory board of Sus- the world, as well as by huge internet Narus’ Chief Technical Officer, began pect Detection Systems (SDS) Ltd. companies that hand over their custom- his high-tech career at Israel Aerospace This Israeli company says its “anti-ter- er’s data to these agencies. Narus says Industries. (See “State-owned Israeli ror and anti-crime technology...detects its systems can “immediately detect, War Industries,” pp.48.) He and other the hidden ‘hostile intent’ of assailants- analyze, mitigate and target any un- Narus cofounders, have since gone to before they commit their intended wanted, unwarranted or malicious traf- work for other Israeli high-tech firms. acts.” The SDS website says Levin fic.” However, deciding exactly what For example, Oren Ariel became the “brings with him extensive support constitutes “unwanted” internet traffic general manager and director of Hew- from his many years of experience in is a matter for Narus’ customers to de- lett-Packard (HP) Labs Israel, whose interrogation and counter-terrorism.” cide. This is troubling because besides parent company is a major Israel mili- Levin also serves on the advisory board supplying its wares to the largest tel- tary contractor. (See HP, pp.36-37.) of an Israeli “homeland security” com- ecom providers in the US, Narus sys- Narus has extremely close con- pany called Camero Inc. which supplies tems for monitoring, analyzing and con- nections to US military and spy agen- police and special forces with technol- trolling people’s everyday use of the cies. William Crowell, who has been ogy that sees through walls. internet are also employed by telecom on Narus’ board since 2004, was deputy 46 Press for Conversion! (Issue # 66) Spring 2012 director of operations before becoming Uri Kolodny www.inminds.com/article.php?id=10445 investing.businessweek.com/research/stocks/private/ Officers/Directors for Israel Growth Partners Ac deputy director of the NSA between person.asp?personId=628556 1994 and 1997. Since 2007, Crowell 167.76.159.8:8020/aa/raweb/fundamp/officer/ Alon J. Bender IGPAU.HTML has chaired the Senior Advisory Group investing.businessweek.com/research/stocks/private/ Carmel Vernia person.asp?personId=6386264 for the US Director of National Intelli- investing.businessweek.com/research/stocks/people/ gence, who is the principal advisor on Noam Livnat person.asp?personId=5646682 intelligence matters to the US Presi- investing.businessweek.com/research/stocks/private/ Prospectus - Inc/NY, May person.asp?personId=49648761 dent, the National Security Council and 1, 2001. Comverse Infosys documents www.docstoc.com/docs/21682868/Prospectus— the Homeland Security Council. cryptome.org/verint-spysys.htm COMVERSE-TECHNOLOGY-INCNY—5-1-2001 Another Narus board member is Verint Fact Sheet, July 2010. Yiar Cohen Peter Kersten a “decorated Marine verint.com/corporate/misc/file/Verint%20Fact%20 investing.businessweek.com/research/stocks/people/ Corps veteran with combat duty in Sheet%20July%202010.pdf person.asp?personId=25333492 Kuwait and Somalia.” Before joining Communications Intelligence and Investigative Rontal Applications Ltd Narus he “managed high-level relation- Solutions investing.businessweek.com/research/stocks/private/ snapshot.asp?privcapId=36311819 ships” between military contractors, the verint.com/communications_interception/index.cfm NSA and the Pentagon. Illustrating the “America’s Israeli Spying Problems,” March 10, Amiram Levin 2009. investing.businessweek.com/research/stocks/private/ value placed by Narus on good rela- www.billslinksandmore.com/Billsblog/2009/03/10/ person.asp?personId=37824298 tions with US military and intelligence americas-israeli-spying-problems/ Major General (Res.) Amiram Levin, Former agencies, Kersten is now the its vice Kobi Alexander Deputy Mossad Chief, Joins Suspect Detection president of US Federal Sales. investing.businessweek.com/research/stocks/people/ Systems’ Advisory Board, May 11, 2009. person.asp?personId=263005 www.reuters.com/article/2009/05/11/idUS102711+11- Further demonstrating this com- May-2009+PRN 20090511 pany’s integration into the Big Brother SDS Team US-led, global military-in- “Gnarus” www.suspectdetection.com/team.html dustrial complex, is Boe- Marc Perelman, “Debate Flares ing’s purchased of Narus in Over Israel’s Access to American 2010. With US$30.9 billion Secrets,” Jewish Daily Forward, in military revenues, October 23, 2008. www.forward.com/articles/14433/ is the world’s fourth largest Narus war industry, and the pre- en.wikipedia.org/wiki/Narus_ miere manufacturer of war- (company) planes. Mark Klein, “AT&T Deploys Gov- ernment Spy Gear on WorldNet References Network,” January 16, 2004. James Bamford, “The Shadow scriptkitchen.com/att_klein_wired.pdf Factory, the Ultra-Secret NSA James Bamford, The Shadow Fac- from 9/11 to the Eavesdropping on tory: The Ultra-Secret NSA from RS America” 9/11 to the Eavesdropping on www.grossolatos.com/blog/wp-content/uploads/2011/ Ronen Nir America, 2008. 06/The-Shadow-Factory.pdf investing.businessweek.com/research/stocks/private/ www.grossolatos.com/blog/wp-content/uploads/2011/ person.asp?personId=44762727 Philip Giraldi, “The Spy Who Loves Us,” Ameri- 06/The-Shadow-Factory.pdf can Conservative, June 2, 2008. Kenneth Minihan Raphael Fogel, “Ori Cohen, private eye,” www.theamericanconservative.com/article/2008/jun/02/ investing.businessweek.com/research/stocks/private/ Haaretz, July 11, 2006. 00006/ person.asp?personId=1908593 www.haaretz.com/news/ori-cohen-private-eye-1.192771 Christopher Ketcham, “An Israeli Trojan Horse: Larry Myers Timothy Karr, “One U.S. Corporation’s Role in How Israeli Backdoor Technology Penetrated the investing.businessweek.com/research/stocks/people/ Egypt’s Brutal Crackdown,” Huffington Post, person.asp?personId=8113535 U.S. Government’s Telecom System and Com- January 28, 2011. promised National Security,” CounterPunch, Victor De Marines www.huffingtonpost.com/timothy-karr/one-us- September 27, 2008. investing.businessweek.com/research/stocks/private/ corporations-role-_b_815281.html person.asp?personId=2201309 www.counterpunch.org/ketcham09272008.html Raphael Fogel, “Ori Cohen, private eye,” Verint Systems, Wikipedia Victor Demarines Haaretz, July 11, 2006. en.wikipedia.org/wiki/Verint_Systems www.walkersresearch.com/profilePages/Show_ www.haaretz.com/news/ori-cohen-private-eye-1.192771 Executive_Title/Executive_detail.asp?id=100026 Ciara Linnane,”Security-technology rally tied to 58400019 Ori Cohen terror scare,” MarketWatch, August 10, 2006. www.linkedin.com/pub/ori-cohen/0/16/708 Dan Bodner www.marketwatch.com/story/security-technology- Stas Khirman shares-rally-on-terror-scare investing.businessweek.com/research/stocks/people/ person.asp?personId=263013 www.linkedin.com/in/khirman Alon Geva Meir Sperling Oren Ariel investing.businessweek.com/research/stocks/private/ il.linkedin.com/in/oariel person.asp?personId=430653 investing.businessweek.com/research/stocks/people/ person.asp?personId=268012 William P. Crowell Yoav Shaked Customer Solutions investing.businessweek.com/research/stocks/private/ investing.businessweek.com/research/stocks/private/ person.asp?personId=347467 person.asp?personId=1546234 www.tadirantele.com/tadiran-telecom/customers/ government.aspx Peter Kersten Chaim Bechor IDF Military contractor awarded record $800 investing.businessweek.com/research/stocks/private/ investing.businessweek.com/research/stocks/people/ person.asp?personId=22783275 person.asp?personId=30420383 million deal with BT, July 9, 2010. Spring 2012 (Issue # 66) Press for Conversion! 47