The Daily Update 15 October 2010 The Investigative Project on (IPT) www.investigativeproject.org Subscriptions, PDF attachment & feedback: [email protected]

General security, policy 1. New Pakistani Taliban operative feared inside U.S. after Times Square failure 2. Inside the ring: China's rare-earth controls; N. Korean missiles; CIA covert action 3. State Department drops terror label from Algerian group 4. Khadr negotiating plea deal; Canadian aid worker claims patriarch advised al-Qaeda leaders, abused charities and repeatedly tried to have him killed 5. Ghailani trial update 6. Testimony begins at Hassan’s Fort Hood Article 32 hearing 7. Series: Parts 3 & 4 of 4: Profiles of Americans who play key roles in terrorism threat 8. Federal judge says 11 jurors can deliberate fate of 4 accused of trying to bomb Bronx synagogues 9. As terror alert continues, NYPD holds drill to prep for Mumbai style attack 10. Second Canadian terror suspect in bomb plot released on bail 11. Judge overrules terror suspect Abdulmutallab’s request on evidence 12. Memo names Canadian politicians feared under foreign influence 13. Ontario’s highest court gives woman second chance for niqab at trial 14. DOJ Civil Rights Division concludes no crime occurred in shootout with Dearborn imam

Air, rail, port, health & communication infrastructure security 15. U.S. to pay SIGA up to $2.8 billion in biodefense deal 16. New airport scanner discerns shampoo from explosives; Newark, NYC airports continue to wait for full-body scanners 17. Preventing a hack attack

Financing, money laundering, fraud, identity theft, civil litigation 18. Fellowship Foundation offers heated rebuttal to terror money allegation 19. Subpoenas cancelled for 14 from Twin Cities & Chicago probed for material support of terror groups 20. Treasury targets Sinaloa Cartel financial and air cargo networks 21. 73 members and associates of organized crime enterprise, others indicted for health care fraud crimes involving more than $163M 20. Rep. Frank concerned about Treasury proposal on cross-border transactions 23. 22 Oklahoma City-area stores raided in massive food stamp fraud investigation; 30 arrested 24. Syrian Islamic singer linked to HLF pleads guilty in Detroit to false statements

Border security, immigration & customs 25. AZ sheriffs cite border beheading in latest criticism of feds 26. Major B.C. drug bust linked to Mexican cartel 27. CBP seizes more than $277,000 in cash from smuggler leaving the US 28. Sept. 11 hero fights for his job back 29. Former Des Moines Imam arrested in Texas on immigration-related charges

International 30. Gen. Petraeus: Special forces eliminate 300 Taliban and al-Qaeda leaders 31. Thai police hold 15 Pakistanis, probe possible terror link

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32. Hidden agenda in Ahmadinejad's Lebanon trip? Iran elected to OPEC presidency 33. Saudi Arabia arrests ex-Guantanamo Qaeda detainee 34. Yemeni intelligence commander survives assassination attempt by al-Qaida 35. UAE hands over to Bahrain a Syrian fugitive wanted in connection with terror financing 36. British aid worker kidnapped in Somalia 37. Terror suspect in Norway to remain in custody 38. UK banks draw fire for Nigerian accounts; Asil Nadir: hazardous bacteria in old files could delay trial 39. UK seeks private industry help in averting cyber attacks 40. Identity of EU bank data overseer shrouded in secrecy

Comment / analysis 41. Reza Kahlili: Ahmadinejad's Lebanon victory lap 42. Andy McCarthy: Ghailani Trial Underway … and Predictable 43. John Rosenthal: Germany's Jihadi Export 44. Seth Mandel: Are Taxpayers Forced to Administer Shariah Law? 45. IPT News: Groups' Reflexive Rhetoric Ignores Facts

The Investigative Project on Terrorism Daily Update is designed for use by law enforcement, the intelligence community and policy makers for non-profit research and educational use only. Quoted material is subject to the copyright protections of the original sources which should be cited for attribution, rather than the Update. Our weekly report, "The Money Trail," derived from our Daily Update, is a compilation of materials on terror financing and other related financial issues.

THE AMERICAS

GENERAL SECURITY, POLICY

1. EXCLUSIVE: New Pakistani Taliban Operative Feared Inside U.S. After Times Square Failure By Mike Levine and Jennifer Griffin October 14, 2010 FoxNews.com http://www.investigativeproject.org/ext/7011 Senior U.S. officials are concerned over recent intelligence indicating that the Pakistani Taliban, which orchestrated the failed Times Square bombing, may have successfully placed another operative inside the to launch a second attack, sources tell Fox News. Authorities, however, know very little about the potential operative or any possible plot. "[We] don't know who it is and don't know where it is," one source said. "We know the guy's here, but don't know anything about him." Based on the intelligence, authorities believe the Pakistani Taliban, also known as Tehrik-e Taliban , would have directed the individual to attempt another Times Square-style operation, but not necessarily in …

2. Inside the Ring By Bill Gertz The Washington Times 4:24 p.m., Wednesday, October 13, 2010 http://www.washingtontimes.com/news/2010/oct/13/inside-the-ring-33926199/ China's rare-earth controls The diplomatic dispute between China and Japan over the Senkaku Islands has died down, but the incident involving a detained fishing boat captain has raised new fears within the U.S. government over China's use of economic warfare, namely, its control over exports of rare-earth minerals needed for high- technology manufacturing...

North Korean missiles North Korea's military displayed new missiles during the major parade Sunday marking the promotion of Kim Jong-il's son, Kim Jong-un, as the next "Dear Leader." According to U.S. officials and private military analysts, the parade provided the first photos of two new systems: a medium-range missile called the Musudan and an advanced surface-to-air missile (SAM) that appears based on Russian and Chinese anti-aircraft missiles...

CIA covert action

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A new book by journalist Bob Woodward reveals some of the CIA's holy-of-holies secrets: Details of covert action programs that must be approved personally by the president. Mr. Woodward, in "Obama's Wars," describes a Dec. 9, 2008, meeting between President-elect Obama and then-CIA Director Michael V. Hayden and then-Director of National Intelligence Mike McConnell. The briefing was on a detailed listing of some of the "14 highly classified covert actions," Mr. Woodward wrote...

3. State Department Drops Terror Label From Algerian Group By Samuel Rubenfeld October 14, 2010, 7:03 PM ET. WSJ Blogs: Corruption Currents: Commentary and news about money laundering, bribery, terrorism finance and sanctions http://www.investigativeproject.org/ext/7012 The State Department dropped its foreign terrorism designation of the Algerian Armed Islamic Group, which goes by the French initials GIA. Most of GIA’s senior leaders and other remnants left to join al Qaeda in the Islamic Maghreb, a group already labeled as terrorists, rendering the GIA’s designation as moot, according to the State Department’s public notice to be published in Friday’s edition of the Federal Register. The group, which formed in 1992 out of a decision by the secular military government to stop an election in which an Islamist party was expected to win, vowed to establish a sharia government to rule over Algeria. It also has a history of hitting targets in France; GIA fliers with the Eiffel Tower on them were among the reasons experts believe the iconic structure received bomb threats in September.

4. Khadr negotiating plea deal By National Security Reporter Toronto Star October 14, 2010 http://www.thestar.com/specialsections/omarkhadr/article/875311--khadr-negotiating-plea-deal?bn=1 A plea deal in the case is being negotiated, just days before his war crimes trial is set to resume Guantanamo Bay. Canadian lawyer Nathan Whitling confirmed that a ―potential deal‖ is in the works but that he could not comment on details. Quoting unnamed sources, Al Arabiya television station reported that a settlement had already been reached, including a provision that would allow the Toronto- born captive to spend the majority of his sentence in Canada. A source told the Star that the deal was one proposed by the defense team and approved Wednesday night by Guantanamo’s Convening Authority – the Pentagon’s senior official responsible for signing off on plea agreements. But a statement from Foreign Affairs Minister Lawrence Cannon’s office poured cold water on Khadr's possible repatriation…

Exclusive — Khadr’s father tried to kill me: aid worker Stewart Bell October 14, 2010 – 8:56 pm http://www.investigativeproject.org/ext/7013 IPT NOTE: For more background on the Khadr family, see http://www.cbc.ca/news/background/khadr/ A Canadian aid worker has accused the patriarch of Toronto’s Khadr family of advising al-Qaeda leaders, abusing charities and repeatedly trying to have him killed in Pakistan and Afghanistan. In exclusive interviews with the National Post, Mohamed Fadil spoke publicly for the first time about the years he spent alongside Ahmed Saeed Khadr, also known as Al-Kanadi, Arabic for The Canadian. ―Khadr is not a saint,‖ said Mr. Fadil, a 54-year-old Iraqi-Canadian businessman and chairman of the Canadian Relief Foundation, a registered charity. ―Khadr was really a jihadi. Khadr was not a charity worker.‖ Between 1985 and 1990, Mr. Fadil worked with Mr. Khadr at the Pakistan office of an -based charity. They crossed paths again from 1999 until Mr. Khadr fled following the Sept. 11, 2001 terrorist attacks. Among Mr. Fadil’s claims:…

5. Trial of Man Once Held at Guantánamo Opens By BENJAMIN WEISER New York Times October 13, 2010 http://www.nytimes.com/2010/10/13/nyregion/13ghailani.html In the first civilian trial of a former Guantánamo detainee, the word Guantánamo was not uttered in front of the jury as the case began on Tuesday in Federal District Court in Manhattan. Instead, a prosecutor focused on what he said was the defendant’s role in a 1998 plot to bomb two United States Embassies in East Africa. The defendant, Ahmed Khalfan Ghailani, participated ―because he and his accomplices were committed to Al Qaeda’s overriding goal, killing Americans,‖ the prosecutor, Nicholas Lewin, told the jury in his opening statement. Mr. Ghailani helped to buy the truck that was used to bomb one embassy, in

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Dar es Salaam, Tanzania, and also about 20 large gas tanks that were packed inside the truck to increase the force of the blast and kill more people, Mr. Lewin said. That bombing killed 11 people; a nearly simultaneous attack on the American Embassy in Nairobi, Kenya, killed 213 people. Thousands of people were wounded in the attacks, which were orchestrated by Al Qaeda’s East Africa cell… The trial of Mr. Ghailani has been widely anticipated since last year, when he became the first Guantánamo detainee moved into the civilian system. After he was captured in 2004, he spent nearly five years at Guantánamo Bay, Cuba, and, earlier, in overseas jails run by the Central Intelligence Agency, where his lawyers have said that he was tortured…

Different Views of Terror Suspect: Key Bombing Participant or Dupe Mark Hamblett 10-13-2010 New York Law Journal Online Copyright 2010. ALM Media Properties, LLC. All rights reserved. http://www.law.com/jsp/nylj/PubArticleNY.jsp?id=1202473283827 A prosecutor told a jury yesterday that Ahmed Khalfan Ghailani played a critical role in the al-Qaida cell that bombed two U.S. embassies in 1998, while a defense lawyer for the Tanzanian national insisted he was nothing more than an innocent dupe…

Judge Says Key Figure in Embassies Bombing Case Isn’t Credible By BENJAMIN WEISER New York Times October 15, 2010 http://www.nytimes.com/2010/10/15/nyregion/15ghailani.html A key witness who was to testify in the first civilian trial of a former Guantánamo detainee was accused by the judge on Thursday of making false statements about why he decided to cooperate with authorities. The judge, Lewis A. Kaplan of Federal District Court in Manhattan, had already barred the witness, Hussein Abebe, from testifying in the trial of the former detainee, Ahmed Khalfan Ghailani, who is charged with assisting in the 1998 bombing of the United States Embassy in Dar es Salaam, Tanzania. In a decision made public on Thursday, the judge elaborated on his reasoning. He said he had concluded that Mr. Abebe feared being arrested if he did not cooperate with the authorities...

6. Heroism and horror emerge in Fort Hood shooting hearing by JASON WHITELY WFAA Posted on October 13, 2010 at 10:27 AM Updated today at 11:42 AM http://www.wfaa.com/news/Heroism-graphic-testimony-open-Fort-Hood-shooting-hearing-104862984.html Editor’s note: This story contains graphic testimony by survivors of the Fort Hood shooting who testified in Wednesday’s hearing. FORT HOOD – Sgt. Alonzo Lunsford’s voice was clear and emotionless Wednesday morning as the 20- year Army veteran recalled the day Maj. Nidal Hasan reportedly opened fire last November inside a soldier processing center on post. Thirteen were killed and 31 others were injured. Lunsford was struck five times. ―Maj. Hasan yells, 'Allahu Akbar,’‖ Lunsford testified… Hasan is accused of murdering 13 fellow soldiers and attempting to kill 32 others when he opened fire inside a processing center on post November 5, 2009. Both prosecution and defense testimony will be heard during the Article 32, though witness lists were not supplied by the Army… The prosecution’s case in the Article 32 is expected to last up to three weeks. But, according to military law, experts said there is one thing prosecutors do not have to establish in the Article 32. "About the only thing they don't really have to go into is why — motivations, motives. They don't have to do that, and there's a good chance they won't." However, a motive will have to be established at trial, he added…

Mental health specialists were hit hard at Fort Hood, victims testify By Ann E. Gerhart Washington Post Thursday, October 14, 2010; 8:48 PM http://www.washingtonpost.com/wp-dyn/content/article/2010/10/14/AR2010101406767.html FORT HOOD, TEX. - … Prosecutors, whose intent in this proceeding is to demonstrate that there are grounds for a full-scale trial of Hasan, so far have presented testimony focused on the events of Nov. 5. Hasan and his attorneys have offered no formal response to the charges…

Soldier says he was ordered to delete Fort Hood video By Angela K. Brown and Michael Graczyk Associated Press 11:30 a.m., Friday, October 15, 2010 http://www.washingtontimes.com/news/2010/oct/15/soldier-says-he-was-ordered-delete-fort-hood-video/

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FORT HOOD, Texas (AP) — A soldier says he shot cell phone video during last year's Fort Hood deadly rampage but that an officer ordered him to delete the footage. Under cross examination Friday, Pfc. Lance Aviles has told a military court that he deleted the two videos at the direction of his NCO on the same day as the shooting, Nov. 5. Friday is the third full day of testimony at the Article 32 hearing to decide if Maj. Nidal Hasan, the 40-year-old American-born Muslim charged with 13 counts of premeditated murder and 32 counts of attempted premeditated murder at Fort Hood, should stand trial...

7. 'Revolution Muslim' A Gateway For Would-Be Jihadis by Dina Temple-Raston NPR Morning Edition October 13, 2010 Third of four parts http://www.npr.org/templates/story/story.php?storyId=130519592 Transcript http://www.npr.org/templates/transcript/transcript.php?storyId=130519592 When Yousef al-Khattab demonstrated outside New York mosques just a couple of years ago, it was pretty obvious where he stood on the political spectrum. "All we want is the non-Muslims, at this point, off the lands of Muhammad. ... We want the kafirs out of it," Khattab said in one interview, using a term for infidels or Muslim nonbelievers. When asked if he wanted Islam to take over the world, his answer was unequivocal: "Of course I want it to ... and it will." To promote that world view, Khattab and a friend of his — Columbia University graduate Younes Abdullah Mohammed — started a group called Revolution Muslim. Khattab says it was supposed to be both a radical Islamic organization and a movement. It operates openly and freely in New York City and on the Web. He says their blog receives 1,500 hits a day, while the Revolution Muslim YouTube channel has almost 1,000 subscribers. The group's goals include establishing Islamic law in the U.S., destroying Israel and taking al-Qaida's messages to the masses…

Two Americans Become Al-Qaida Media Strategists by Dina Temple-Raston NPR Morning Edition October 14, 2010 Fourth of four parts http://www.npr.org/templates/story/story.php?storyId=130543554 Transcript: http://www.npr.org/templates/transcript/transcript.php?storyId=130543554 There are a lot of different ways of promoting the terrorist message, but few people have been as successful at doing so as Americans Adam Gadahn and Anwar al-Awlaki. Gadahn is a Californian who joined al-Qaida back in the late 1990s. He's the plump, sometimes pedantic, star of al-Qaida's earliest videos. Awlaki is a New Mexico native of Yemeni descent who has, in recent months, become the bane of counterterrorism officials' existence. What is important about both men is that they are among a select group of Americans who have joined up with terrorist groups and were elevated to senior positions within them. Both Gadahn and Awlaki now provide al-Qaida with insider's knowledge of the United States — and that has helped al-Qaida and its affiliates develop a very sophisticated media strategy targeting possible American recruits...

8. Federal judge says 11 jurors can deliberate fate of four men accused of trying to bomb Bronx synagogues By DOUGLAS MONTERO Last Updated: 12:22 PM, October 12, 2010 http://www.investigativeproject.org/ext/7014 A federal judge refused to grant a mistrial this morning in the case of four men accused of trying to bomb two Bronx synagogues after removing a juror. The jury deliberating the bombing case was dismissed early for the weekend last Friday when a document that was never entered into evidence was found in a juror's notebook. Manhattan federal Judge Colleen McMahon excused a juror who said she could not be fair and said the panel could deliberate with 11 members. Juror No. 1, a woman, was let go and not replaced with an alternate. She refused to talk with reporters as she left the building. McMahon had ripped prosecutors last week for accidentally including the three-page report in Juror No. 1's binder of transcribed FBI wiretaps. The transcript was of a conversation between a defendant and his dad. Its contents were not revealed…

9. As Terror Alert Continues, NYPD Holds Drill To Prep For Mumbai Style Attack New York Terror Exercise Simulates Commando Assault On Wall Street By RICHARD ESPOSITO and ASA ESLOCKER ABC News Oct. 14, 2010 http://abcnews.go.com/Blotter/terror-alert-continues-nypd-holds-drill-prep-mumbai/story?id=11879452

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As US officials proclaim an alleged European terror plot still active, New York City police conducted a drill Thursday that simulated a Mumbai-style attack on civilians on a crowded street in Manhattan's financial district. Police Commissioner Ray Kelly addressed the media before the drill, which began with two large explosions. "This is what we do," he explained. "We think the unthinkable." The drill simulated multiple bombs and shooters, including a bomb under a vehicle, and police responded with helicopters, dogs, automatic weapons and an armored car. ..

10. Second Canadian Terror Suspect Released On Bail By Angus Loten, Dow Jones Newswires OCTOBER 13, 2010, 5:06 P.M. ET. http://online.wsj.com/article/BT-CO-20101013-713262.html A Canadian doctor charged with two other men in a homegrown terrorist bomb-making plot was granted bail Wednesday, the second suspect to be released since the men were arrested in a police sweep in late August. Khurram Syed Sher, 28, a pathologist at a London, Ont. hospital who once auditioned for the TV show "Canadian Idol," was released on C$5,000 bail, along with $178,000 in bonds posted by his family. Sher, who will await trial at his sister's home in suburban Toronto, was ordered to surrender his and stay in Ontario. He's barred from using a cellphone and can only go online to study for upcoming medical exams. Evidence cited at his bail hearing is subject to a court-imposed publication ban. Sher, and two other men, Misbahuddin Ahmed, 26, and Hiva Alizadeh, 30 , were charged with conspiracy to commit terrorist acts after Royal Canadian Mounted Police said they found terrorist literature, bomb- making videos and schematics in their homes. The men had been under police surveillance for several months...

11. Judge Overrules Terror Suspect’s Request on Evidence By MARY M. CHAPMAN New York Times October 15, 2010 http://www.nytimes.com/2010/10/15/us/15bomber.html? DETROIT — Overruling the wishes of a Nigerian man accused of trying to use explosives in his underwear to blow up a transcontinental airliner over Detroit last Christmas, a federal judge on Thursday ordered that the man’s standby lawyer receive documents related to the prosecution’s case. The defendant, Umar Farouk Abdulmutallab, also waived his right to a speedy trial. Earlier at the hearing in Federal District Court here, Mr. Abdulmutallab told Judge Nancy G. Edmonds that he wanted to continue representing himself and that he did not want the lawyer appointed by the court to advise him to receive discovery documents...

12. Memo names politicians feared under foreign influence Joanna Smith Ottawa Bureau Published On Fri Oct 15 2010 Toronto Star http://www.thestar.com/news/canada/article/875724--feds-now-know-who-csis-thinks-is-vulnerable?bn=1 CSIS Memo http://media.thestar.topscms.com/acrobat/4f/a2/43dcd0064aafa4512834585d22db.pdf OTTAWA—The Canadian spy chief has told the federal public safety minister who the intelligence agency suspects is being unduly influenced by foreign agents, according to a top-secret memo obtained by the Star. The undated, draft memo from Richard Fadden to Vic Toews is heavily redacted, but shows he made good on his pledge to inform the minister about his specific concerns after he first shook the country by divulging those concerns in a speech and nationally televised interview. Fadden made waves this summer when he said that foreign governments — including China — have been infiltrating ethnic communities and trying to influence politicians at all levels of government. A spokesperson for Toews would not say what, if anything, the minister did after receiving the four-page memo, citing national security…

13. Court gives woman second chance for niqab at trial October 13, 2010 Toronto Star Tracey Tyler http://www.thestar.com/news/article/874474--court-gives-woman-second-chance-for-niqab-at-trial IPT NOTE: The decision is posted at http://www.ontariocourts.on.ca/decisions/2010/october/2010ONCA0670.htm [HTML] and http://www.ontariocourts.on.ca/decisions/2010/october/2010ONCA0670.pdf [PDF]. Scroll down to get to the beginning of the opinion, as a statute is pasted at the top of the document. Ontario’s highest court has quashed a judge’s order that required a Muslim woman to remove her niqab while testifying at the trial of two male relatives accused of sexually assaulting her. However, in its 3-0

6 decision Wednesday, the Ontario Court of Appeal stopped short of saying the woman can give evidence in front of a jury with most of her face shielded by a head scarf. Instead, the court opened the door to a more thorough inquiry by a preliminary hearing judge, saying the woman, who can be identified only as N.S., should have been allowed to explain the connection between her religious beliefs and the wearing of he niqab and to demonstrate the sincerity of those beliefs. The case is the first time a Canadian appeal court has dealt with the contentious issue and the court emphasized Wednesday that requests to have witnesses remove their niqabs must be considered on a case-by-case basis because the subject does not lend itself to any ―bright line‖ rule…

Niqab must be removed if trial fairness jeopardized, court rules Kirk Makin Globe and Mail Published Wednesday, Oct. 13, 2010 11:17AM EDT Last updated Wednesday, Oct. 13, 2010 12:26PM EDT http://www.investigativeproject.org/ext/7015 Muslim witnesses wearing a face-covering niqab must remove it to testify if the covering would truly jeopardize a fair trial, the Ontario Court of Appeal ruled today. ―If, in the specific circumstances, the accused’s fair trial right can be honoured only by requiring the witness to remove the niqab, the niqab must be removed if the witness is to testify,‖ the Court said. However, it said that trial judges must respect their religious rights by allowing witnesses to testify about their religious beliefs and compelling them to remove a niqab in as few cases as possible...

14. Justice Department Concludes No Federal Criminal Violation in the Death of Imam Abdullah in Dearborn Department of Justice Office of Public Affairs (Civil Rights Division) Wednesday October 13, 2010 http://www.justice.gov/opa/pr/2010/October/10-crt-1143.html IPT NOTE: The full DOJ report is posted at http://www.investigativeproject.org/documents/case_docs/1390.pdf WASHINGTON – The Justice Department announced today that the evidence does not reveal a violation of the applicable federal criminal civil rights statute or warrant further federal criminal investigation in the death of Imam Luqman Ameen Abdullah, a Detroit Muslim cleric, who was shot during an Oct. 28, 2009, arrest by FBI agents in Dearborn, Mich. The department conducted a complete, thorough, and independent review of this matter. The review included examining all documents witness accounts, forensic evidence and reports, and operational plans and procedures that were generated by an FBI Inspection Division inquiry, a Dearborn Police Department investigation, and the Wayne County Medical Examiner’s office. Additionally, a senior Civil Rights Division prosecutor consulted with Dearborn detectives and forensic experts and interviewed critical witnesses, including the FBI agents who shot Imam Abdullah and who voluntarily agreed to be interviewed...

CAIR Blasts Investigation for Not Agreeing with Them by IPT News • Oct 14, 2010 at 11:07 pm http://www.investigativeproject.org/blog/2010/10/cair-blasts-investigation-for-not-agreeing-with Leaders of the Council on American-Islamic Relations (CAIR) Michigan chapter are blasting a Justice Department review of last year's shooting death of a Detroit imam after the review found agents acted appropriately. CAIR officials have spent the past year trying to cast the shooting as unjust and excessive. They were joined at a news conference Thursday by leaders of several community groups and Imam Luqman Abdullah's son. Dawud Walid, CAIR's Michigan director, called the DOJ review "superficial and incomplete" and demanded the Justice Department examine the tactics used in the arrest, which featured SWAT teams and officers from numerous agencies. The DOJ investigation, as probes by the Michigan Attorney General and Dearborn police before it, made it clear that Abdullah's history of threatening law enforcement and other inflammatory rhetoric was at the forefront of agents' thinking. Still, Walid and CAIR attorney Lena Masri cast the "military-type operation" as excessive and something that should be reserved for terrorists or drug kingpins…

AIR, RAIL, PORT, HEALTH & COMMUNICATION INFRASTRUCTURE SECURITY

IPT NOTE: For more: DHS Daily Open Source Infrastructure Reports http://www.dhs.gov/xinfoshare/programs/editorial_0542.shtm ; DHS Blog

7 http://www.dhs.gov/journal/theblog ; Public Safety Canada Daily Infrastructure Report http://www.publicsafety.gc.ca/dir/index-eng.aspx ; TSA Press Releases http://www.tsa.gov/press/releases/index.shtm ; TSA Blog http://www.tsa.gov/blog/

15. U.S. to pay SIGA up to $2.8 billion in biodefense deal Published: Wednesday, 13 Oct 2010 | 5:33 PM ET Reuters http://www.cnbc.com/id/39658311 BANGALORE - The United States is spending up to $2.8 billion to shore up its defenses against biological warfare, according to a drugmaker who expects to get a government contract to supply smallpox antiviral drugs. SIGA Technologies Inc shares jumped 50 percent to their lifetime high on Wednesday after the company said it expects to get a contract to supply 1.7 million courses of its smallpox drug for the strategic national stockpile, with the base contract worth about $500 million in revenue..

16. New airport scanner tells shampoo from explosives Technology could allow air travelers to bring water bottles, toiletries on board again By SUSAN MONTOYA BRYAN The Associated Press October 14, 2010 http://today.msnbc.msn.com/id/39660130/ns/travel-news/# ALBUQUERQUE, N.M. — The latest airport security technology being developed at Los Alamos National Laboratory could open the door for airline passengers to bring their soft drinks and full-size shampoo bottles on board again. Homeland security officials put the latest generation of the bottled liquid scanner to the test Wednesday during a demonstration at Albuquerque's international airport. Everything from bottled water and champagne to shampoo and pink liquid laxatives were scanned to make sure explosives weren't hiding inside. The device, about the size of a small refrigerator, uses magnetic resonance to read the liquids' molecular makeup, even when the substances are in metal containers. Within 15 seconds, a light on top of the simple-looking metal box flashes red or green, depending on whether there's danger. The device is so sensitive it can tell the difference between red and white wine, and between different types of soda...

Newark, New York City airports continue to wait for controversial full-body scanners Published: Thursday, October 14, 2010 Newark Star-Ledger http://www.nj.com/news/index.ssf/2010/10/newark_airport_continues_to_wa.html NEWARK — Commercial flights aren’t the only delayed arrivals at the region’s three major airports. After assurances over the summer that full-body scanners would be installed in September at Newark Liberty International, John F. Kennedy and LaGuardia airports, the airports still have not received the controversial imaging technology. With their Superman-like ability to see through passengers’ clothes, the scanners are intended to make the screening process faster and, despite complaints to the contrary, less intrusive than the combination of metal detectors and pat-downs. Following an inquiry from The Star- Ledger as to why the scanners had not arrived last month as planned, the Transportation Security Administration released a statement citing the complexity of the installation process, and said the scanners would arrive "in the coming weeks." …

17. Preventing a Hack Attack Wall Street Journal By M.P. MCQUEEN WEEKEND INVESTOR OCTOBER 9, 2010 http://online.wsj.com/article/SB10001424052748704847104575532420374067024.html When a giant international cyber-theft ring was broken up last week, details emerged about a new tactic hackers are using: bombarding individual and business phones with incessant calls using automated dialing programs and, while the phones are tied up, raiding bank and brokerage accounts. If the financial institutions can't reach the victims to ask about the suspicious activity, the transactions often go through, law-enforcement officials say. It is a new twist on so-called denial-of-service attacks, in which hackers overload financial-services websites with information in order to crash them. The cyber-theft ring—in which dozens of arrests were made in the U.S., the U.K., the Netherlands and Ukraine, according to court documents and federal officials—allegedly used the tactic, among others. The ring was responsible for losses of $70 million from accounts at various banks and brokerage firms, including J.P. Morgan Chase & Co., E*Trade Financial Corp. and TD Ameritrade Holding Corp.'s TD Ameritrade, according to the Federal Bureau of Investigation…

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FINANCING, MONEY LAUNDERING, FRAUD, IDENTITY THEFT, CIVIL LITIGATION

18. Fellowship Foundation Offers Heated Rebuttal to Terror Money Allegation Oct. 14, 2010 By Paul Singer Roll Call http://www.rollcall.com/issues/56_38/news/50679-1.html IPT NOTE: Background on the IARA case is found at http://www.investigativeproject.org/case/225 The faith-based organization behind the National Prayer Breakfast is vigorously denying new allegations from an Ohio clergy group that foreign trips and other activities with Members of Congress may have been funded with money from a terrorist organization. The allegation grows out of a guilty plea lodged in July by former Rep. Mark Siljander (R-Mich.), who was charged with concealing that he had been hired by the -based Islamic American Relief Agency to convince the Senate Finance Committee to remove the group from a list of organizations suspected of funding terrorist activities. The indictment and guilty plea explain that the IARA wrote two $25,000 checks to cover Siljander’s costs but that in order to cloak the payments, the checks were made out to the International Foundation, which cashed the checks and then paid the money to Siljander… Clergy VOICE, a group of Columbus, Ohio-based ministers, filed a complaint Tuesday with IRS Commissioner Douglas Shulman suggesting that the IRS should revoke the foundation’s tax-exempt status based in part on the details spelled out in the Siljander plea…

19. For now, antiwar activists will not be forced to testify Subpoenas to appear before a grand jury in Chicago have reportedly been canceled. What's next is anyone's guess. By JAMES WALSH, Minneapolis Star Tribune Last update: October 12, 2010 - 9:50 PM http://www.startribune.com/local/104830809.html? … In all, 14 antiwar activists and several organizations from the Twin Cities and Chicago who are being investigated for alleged support of terror groups received subpoenas to appear before the grand jury this month. All -- including five who were to appear last week -- have told the U.S. Department of Justice that they are not going… All the subpoenas have been canceled, according to a Chicago attorney working on the case. Instead of being encouraged by the inaction, they are left wondering when the other shoe is going to fall for a growing number of people under investigation… According to the warrants, the FBI is seeking travel and financial information regarding the Palestinian territories, Lebanon and Colombia…

20. Treasury Targets Sinaloa Cartel Financial and Air Cargo Networks October 13, 2010 US Department of the Treasury Press Release TG-905 http://www.treas.gov/press/releases/tg905.htm WASHINGTON –The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) today designated as foreign narcotics traffickers Sinaloa Cartel collaborator Alejandro Flores Cacho, along with 12 entities and 16 members of his financial and drug trafficking enterprise located throughout Mexico and Colombia. Today's designations were taken pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), which prohibits U.S. persons from conducting transactions with the designees and freezes any assets they may have under U.S. jurisdiction. Alejandro Flores Cacho, a pilot, controls a multinational drug transport network in coordination with Sinaloa Cartel members Joaquin Guzman Loera and Ismael Zambada Garcia, both of whom were previously identified by the President as significant foreign narcotics traffickers pursuant to the Kingpin Act… Complete list of individuals and entities designated today http://www.treas.gov/offices/enforcement/ofac/actions/index.shtml; The Flores Cacho network http://treas.gov/press/releases/docs/101310%20Alejandro%20Flores%20Cacho%20Press%20Chart.pdf

21. 73 Members and Associates of Organized Crime Enterprise, Others Indicted for Health Care Fraud Crimes Involving More Than $163 Million Indictments in Five States – California, , New Mexico, New York and Ohio Department of Justice, Office of Public Affairs Wednesday, October 13, 2010 http://www.justice.gov/opa/pr/2010/October/10-dag-1140.html WASHINGTON – Seventy-three defendants, including a number of alleged members and associates of an Armenian-American organized crime enterprise, were charged in indictments unsealed today in five judicial districts with various health care fraud-related crimes involving more than $163 million in fraudulent billing, announced Acting Deputy Attorney General Gary G. Grindler, FBI Assistant Director of

9 the Criminal Investigative Division Kevin Perkins and Health and Human Services Inspector General Daniel R. Levinson. In this national, multi-agency investigation, 52 were arrested today by FBI agents in the largest Medicare fraud scheme ever perpetrated by a single criminal enterprise and charged by the Department of Justice. The defendants are charged with engaging in numerous fraud activities, including highly-organized, multi-million dollar schemes to defraud Medicare and insurance companies by submitting fraudulent bills for medically unnecessary treatments or treatments that were never performed. According to the indictments, the defendants allegedly stole the identities of doctors and thousands of Medicare beneficiaries and operated at least 118 different phony clinics in 25 states for the purposes of submitting Medicare reimbursements...

22. Frank Concerned About Treasury Proposal On Cross-Border Transactions By Joe Palazzolo October 12, 2010 Wall Street Journal Blog Corruption Currents Commentary and news about money laundering, bribery, terrorism finance and sanctions. http://www.investigativeproject.org/ext/7007 The chairman of the House Financial Services Committee said he has doubts about a Treasury Department proposal that would require banks to report all electronic money transfers into and out of the U.S. The need to better identify and track flows of terrorist funds is clear,‖ Rep. Barney Frank (D-Mass.) said in an Oct. 12 letter to James Freis Jr., the director of the Financial Crimes Enforcement Network, the Treasury’s financial intelligence nerve center. ‖I’m not persuaded that such a broad scale policy change is the best way to achieve this goal.‖ Financial institutions have expressed concerns about their capacity and the costs of shouldering the requirement, which Freis proposed in late September, and privacy advocates have condemned it as government-overreach in the guise of national security...

23. 22 Oklahoma City-area stores raided in food stamp fraud investigation A massive food stamp fraud investigation culminated this week with the arrest of about 30 people from 22 stores in the Oklahoma City metro area. BY RANDY ELLIS Oklahoman Published: October 15, 2010 http://newsok.com/store-raids-net-arrests-in-food-stamp-fraud/article/3504608 A massive food stamp fraud investigation culminated this week with the arrest of about 30 people from 22 stores in the Oklahoma City metro area. Law enforcement investigators and officers swept through the metro area Wednesday and Thursday making the arrests, said Sheree Powell, spokeswoman for the Oklahoma Department of Human Services. Details of the investigation remain sketchy, but the names of two of the individuals charged were made public Thursday after the unsealing of multiple-count indictments in Oklahoma City federal court. Store owners Muluneh Zeleke and Muhammad Zahid are accused of defrauding the Supplemental Nutrition Assistance Program out of more than $1.8 million…

24. Syrian singer faces prison for hiding ties to group labeled as terrorist By Tresa Baldas Detroit Free Press Posted: 5:50 p.m. Oct. 14, 2010 http://www.investigativeproject.org/ext/7010 A singer from the Middle East pleaded guilty today to lying in naturalization proceedings about his ties to a suspected terrorist organization in order to gain U.S. citizenship. Mohamad Mustapha Ali Masfaka, 47, of Syria pleaded guilty to making false statements under oath in naturalization proceedings, a five-year felony, according to U.S. Attorney Barbara McQuade’s office. Authorities said Masfaka was arrested Jan. 22 by federal agents when he tried to enter the U.S. from Canada via the Ambassador Bridge. According to court records, Masfaka, also known as Abu Rateb –a singer throughout the Middle East – was charged with lying to federal officials about his involvement with the Holy Land Foundation for Relief and Development (HLF), an organization that was designated by the U.S. Department of Treasury as a specially designed global terrorist group. Authorities said Masfaka admitted to lying about his involvement with the HLF in an attempt to gain U.S. citizenship in 2002 and 2004...

BORDER SECURITY, IMMIGRATION & CUSTOMS

IPT NOTE: For more details, see US Customs and Border Protection releases at http://www.cbp.gov/xp/cgov/newsroom/news_releases/ ; US Immigration and Customs Enforcement http://www.investigativeproject.org/ext/3902 ; Canada Border Services Agency http://www.cbsa-

10 asfc.gc.ca/menu-eng.html

25. AZ sheriffs cite border beheading in latest criticism of feds Posted: Oct 13, 2010 2:42 PM EDT Updated: Oct 13, 2010 3:02 PM EDT Reporter: Forrest Carr KGUN9.com http://www.kgun9.com/Global/story.asp?S=13317340 Full text of press release http://ftpcontent.worldnow.com/kgun/KGUN/10%2013%20Border%20Sheriffs.pdf PHOENIX (KGUN9-TV) - It didn't happen anywhere near Arizona. But the reported beheading of a Mexican police commander is adding new fuel to Arizona's border security debate. On Wednesday morning, the Arizona Border Sheriffs Association issued a press release portraying the incident as yet another example of the Obama administration's failure to secure the borders. The association's website, bordersheriffs.com, is dedicated to defending SB 1070, Arizona's tough crackdown on illegal immigration. Its home page features two well known sheriffs, Larry Dever of Cochise County and Paul Babeu of Pinal County, who are listed as the site's honorary co-chairmen… In Wednesday morning's press release, Babeu says the beheading points out that "the federal government has not been doing its job to protect the citizens of Texas, Arizona and this country." Babeu goes on to say, "As we near the November 1st hearing of the Justice Department's lawsuit amazingly against Arizona law enforcement, we plead with President Obama, Secretary Napolitano and the ACLU to drop their lawsuits, send much-needed resources to the border and let us do our job."…

26. Major B.C. drug bust linked to Mexican cartel Fruit-grinding machine used to hide cocaine, authorities say By Kim Bolan, Vancouver Sun October 12, 2010 http://www.vancouversun.com/news/Major+drug+bust+linked+Mexican+cartel/3659297/story.html VANCOUVER - Three B.C. men and one Mexican national have been charged in a sophisticated cocaine smuggling operation which police say is linked to a Mexican cartel. Almost 100 kilos of cocaine were discovered Sept. 22 by inspectors with the Canada Border Services Agency; the drugs were hidden in a fruit-grinding machine imported from Argentina and destined for Kelowna. The RCMP's Federal Drug Enforcement Branch was called in and allowed the machine, minus the illicit stash, to carry on to its destination…

27. CBP seizes more than $277,000 in cash October 12, 2010 9:26 PM By ILDEFONSO ORTIZ, The Brownsville Herald http://www.brownsvilleherald.com/articles/cash-117988-release-customs.html U.S. Customs and Border Protection officers and Border Patrol agents arrested a Donna man for trying to smuggle more than $277,000 in cash as he was leaving the United States, the agency said in a press release. Eduardo Sanchez, 35, was arrested Sunday afternoon and later charged by U.S. Immigration and Customs Enforcement with cash smuggling, court documents show…

28. Sept. 11 hero fights for his job back OIA customs officer Jose Melendez-Perez turned away the "20th hijacker" from the Sept. 11 terror attacks. (GEORGE SKENE, ORLANDO SENTINEL FILE / August 29, 2004) By Scott Powers, Orlando Sentinel 6:54 p.m. EDT, October 14, 2010 http://www.orlandosentinel.com/news/local/state/os-customs-911-hero-hearing-20101014,0,136829.story For years, Orlando customs Agent Jose Melendez-Perez was hailed as an American hero of the Sept. 11 terror attacks. Now, after making what he contends was his first major mistake in 44 years of public service, Melendez-Perez is fighting to get his old job back. He faces a disciplinary hearing Tuesday in Orlando. Melendez-Perez, 64, an immigration officer at Orlando International Airport, stopped the 20th terrorist hijacker from entering the United States in August 2001. He won national acclaim for grilling international passenger Mohamed al-Qahtani for 90 minutes and then denying him entry. But six months ago, Melendez-Perez, who lives in east Orange County, drove a U.S. Customs and Border Protection van home for the weekend, violating agency policy. He locked his service weapon, an agency computer and other items inside. Someone broke into the van and stole the items, which were never recovered. The contents of the computer aren't known. He has created a dilemma for the Department of Homeland Security about what to do when a hero later gets into trouble...

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29. Former Des Moines Imam arrested on immigration-related charges By Lynda Waddington 10/14/10 12:35 PM Iowa Independent http://iowaindependent.com/45265/former-des-moines-imam-arrested-on-immigration-related-charges The man who formerly led the Islamic Center of Des Moines will soon be back in the state to face criminal immigration-related charges. Imam Ibrahim Dremali and his wife, Safaa Rashad Eissa, were arrested at their Arlington, Texas, home on Oct. 6 by local and federal agents acting on a warrant issued by the U.S. District Court for the Southern District of Iowa. According to the warrant, Dremali and his wife are suspected of conspiracy and fraud in [the] naturalization process, an immigration offense. According to a spokesman for U.S. Immigration and Customs Enforcement for the region, agents with ICE, Office of Homeland Security Investigations, the Federal Bureau of Investigations and the Arlington Police Department were all involved in the arrest… Few additional details are provided in court records, and federal officials have declined to speak further ―since this is an ongoing investigation.‖ Officials with the U.S. Attorney’s Office for Iowa’s Southern District have not yet responded to inquiries about the case...

ASIA / PACIFIC

30. Special forces eliminate 300 Taliban and al-Qaeda leaders, says General David Petraeus Special allied forces have killed or captured more than 300 Taliban leaders in the last three months, says General David Petraeus, the head of Nato forces in Afghanistan. The Daily Telegraph (London) By Duncan Gardham, Security Correspondent 4:00PM BST 15 Oct 2010 http://www.investigativeproject.org/ext/7024 IPT NOTE: Casualty reports are posted at http://www.defense.gov/releases/ (US); http://www.mod.uk/DefenceInternet/Home/ (UK); http://www.defence.gov.au/ (Australia); http://www.isaf.nato.int/ (NATO). General Petraeus said the targeted men were ―important figures‖ and the ―so-called jackpot‖ targets of operations conducted by British and American special forces. The number of such operations has increased by three or four times from its previous level, he said, as a result of more surveillance aircraft and drones that have been able to spot targets and intercept communications. Meanwhile al-Qaeda’s senior leaders have been forced to go "very deep underground, figuratively speaking, maybe literally as well,‖ he added. One message from had taken four weeks to get out, the general said…

31. Thai police hold 15 Pakistanis, probe possible terror link (AFP) October 13, 2010 http://www.google.com/hostednews/afp/article/ALeqM5h2eifokljzT8w4CWfzsIyTlhn61w BANGKOK — Police in Thailand said Wednesday they had arrested 15 Pakistani nationals involved in suspicious fundraising activity and were investigating possible links to a terrorist organisation. A bank in the southern province of Yala alerted authorities after one of the suspects tried to transfer money to a person in Pakistan on a blacklist "related to a terrorist group", said Police Colonel Piyawat Chalermsri. The detainees, who have been charged with working illegally, said they came to Thailand in September to raise funds to help flood victims in Pakistan... Authorities did not say to whom the suspects were trying to send the funds...

MIDDLE EAST / AFRICA

32. Hidden agenda in Iranian's Lebanon trip? Assassination probe seen at risk By Eli Lake The Washington Times 7:44 p.m., Wednesday, October 13, 2010 http://www.washingtontimes.com/news/2010/oct/13/hidden-agenda-in-iranians-lebanon-trip/ Iranian President Mahmoud Ahmadinejad's visit to Lebanon is adding pressure for Lebanese Prime Minister Saad Hariri to withdraw his government's support for the U.N. investigation into who killed his father — Lebanon's previous leader — in a 2005 car bombing, Western analysts say. Mr. Ahmadinejad arrived Wednesday in Beirut to throngs of supporters, who mostly belong to Hezbollah, the Iranian- supported militia and political party that has sought to derail the tribunal process for fear its senior members will be blamed for the assassination of Prime Minister Rafik Hariri...

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Iran Elected to OPEC Presidency VOA News 14 October 2010 http://www.voanews.com/english/news/middle-east/Iran-Elected-to-OPEC-Presidency-104955309.html For the first time in 36 years, Iran will assume the rotating presidency of the Organization of Petroleum Exporting Countries. It takes effect next year. The appointment was announced Thursday at the start of this week's OPEC meeting in Vienna. Iran's oil ministry's official website, SHANA, announced that Iranian Oil Minister Masoud Mirkazemi will become the elected president of the 12-member oil cartel. Iran is OPEC's second-largest oil producer and was unanimously elected during the 157th session of OPEC's ministerial meeting…

33. Saudi arrests ex-Guantanamo Qaeda suspect (AFP) – October 15, 2010 http://www.google.com/hostednews/afp/article/ALeqM5hdWjwV-NfRew0_YIyAePF9tZ9gvg RIYADH — A former Guantanamo detainee who rejoined Al-Qaeda in Yemen after graduating from Saudi Arabia's rehabilitation programme has turned himself in to Saudi authorities, the government said on Friday. Jaber Jabran al-Faifi, about 35, contacted the Saudi government in recent weeks saying he wanted to return home and a handover was arranged through Yemen's government, interior ministry spokesman General Mansour al-Turki said… Faifi was one of a group of former prisoners at the US Guantanamo prison who had been returned to Saudi Arabia for rehabilitation in December 2006 but then escaped to Yemen two years ago after completing the reform programme. The group became a key part of the Yemen-based Al-Qaeda in the Arabian Peninsula, or AQAP, and began plotting attacks on Saudi as well as Yemeni targets...

34. Yemeni official survives assassination attempt Alleged al-Qaida militants attacked intelligence chief on motorcycles By AHMED AL HAJ The Associated Press October 13, 2010 http://www.msnbc.msn.com/id/39654074/ns/world_news-mideastn_africa/ SAN'A, Yemen — A Yemeni intelligence commander has survived an assassination attempt by alleged al-Qaida militants in the country's southeast, a security official said Wednesday. The official said gunmen on motorcycles shot Brig. Gen. Riyadh el-Khatabi, the deputy intelligence chief in the town Sayoun in Hadramut province. El-Khatabi was rushed to the hospital Wednesday in critical condition. The official, who spoke on condition of anonymity because he was not authorized to brief the media, blamed al- Qaida's Yemeni offshoot for the attack…

35. UAE hands over terror suspect Posted on » Tuesday, October 12, 2010 Gulf Daily News (Bahrain) http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=288883 A SYRIAN fugitive wanted in connection with terror financing has been handed over to Bahraini authorities by the UAE. He was sentenced to five years in jail in absentia by Bahrain's High Criminal Court in February last year, but has been on the run for more than two years. The suspected Al Qaeda fundraiser was presented before the court on Sunday after being tracked down with the help of Interpol. However, his case was adjourned until November 3 for review. He was one of three men wanted in connection with providing funding to terrorists, including two Bahrainis...

36. British Save the Children worker kidnapped in Somalia A British man working for Save the Children in Somalia has been kidnapped from his compound by armed gunmen. By Aislinn Laing in Johannesburg Published: 4:29PM BST 15 Oct 2010 The Daily Telegraph (London) http://www.investigativeproject.org/ext/7023 The man, who has not yet been named, was taken along with his Somali fixer from a town near the Ethiopian border on Friday, according to the charity. The Briton is thought to have been based in Nairobi, Kenya, and worked as a consultant for aid agencies since 2007. He reportedly has dual British/Zimbabwean nationality. A local official said it was still unclear who was behind the kidnapping. "Some people say they are pirates and others say they are Islamists," Mohamed Awale, a local official, said...

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EUROPE

37. Terror suspect in Norway to remain in custody (AFP) – October 15, 2010 http://www.google.com/hostednews/afp/article/ALeqM5jd-FKbDbLnAi6LpMrBBdteMf041w OSLO — David Jakobsen, one of three suspects held in Norway suspected of plotting a bombing, must remain in custody after all, an Oslo appeals court said Friday, a day after ordering his release. The court ruled Thursday that Jakobsen, a 32-year-old Uzbek legally residing in Norway, should be released pending trial due to low flight risk, but that ruling was automatically suspended after Norwegian police appealed the decision, a court official told AFP. Jakobsen would therefore remain in custody until the Norwegian Supreme Court has examined the issue, the court official said, adding it remained unclear when that hearing would take place. Jakobsen and Mikael Davud, a 39-year-old ethnic Uighur from China who is a Norwegian citizen, were arrested in Oslo on July 8. A third man, Shawan Sadek Saeed Bujak, a 37-year-old Iraqi Kurd who holds a Norwegian residence permit, was arrested in Germany and extradited to Norway. Norwegian police suspect the three were plotting a bombing and they are believed to have links to Al-Qaeda…

38. UK Banks Draw Fire For Nigerian Accounts By Samuel Rubenfeld Wall Street Journal Blog October 12, 2010, 4:30 PM ET http://www.investigativeproject.org/ext/7008 Banks that allowed two Nigerian politicians to open accounts should have known better, according to Charles Intriago, founder of the International Association for Asset Recovery, a group devoted to recovering illicit assets. A report released Sunday by U.K.-based anticorruption group Global Witness, ―International Thief Thief,‖ accuses Barclays PLC, HSBC Bank PLC, Royal Bank of Scotland, NatWest (owned since 2000 by RBS) and UBS AG of holding accounts containing allegedly illicit funds for two Nigerian state governors, Diepreye Alamieyeseigha of Bayelsa State and Joshua Dariye of Plateau State, from 1999 to 2005. None of the banks would comment to Corruption Currents on the alleged accounts, though some commented more broadly on their procedures - see below…

Asil Nadir: hazardous bacteria in old files could delay trial The forthcoming trial of fugitive tycoon Asil Nadir has been hit by hazardous bugs in the 18 year- old files, the Old Bailey heard. The Daily Telegraph (London) Published: 12:10PM BST 15 Oct 2010 http://www.investigativeproject.org/ext/7022 Nadir, 69, made his second appearance at the court after spending 17 years in exile. The Serious Fraud Office is now working through 1,400 boxes of paperwork from the original investigation in 1992. But 'microbial organisms' (bacteria) found in the paperwork are holding up the work. One member of staff needed hospital treatment for burns, prosecutor Philip Shears QC, told the court...

39. U.K. Seeks Private Industry Help in Averting Cyber Attacks . By STEPHEN FIDLER Wall Street Journal OCTOBER 12, 2010, 7:47 P.M. ET. http://online.wsj.com/article/SB10001424052748703440004575548710483410620.html The head of Britain's communications intelligence agency said Tuesday that it may need to receive direct feeds of information from private companies in key economic sectors in order to better protect the U.K. economy from the threat from cyber attacks. In a rare speech, Iain Lobban, director of GCHQ since 2008, said the risks from cyber attacks were expanding along with the rise in the Internet, which was growing by 60% a year...

40. Identity of EU Bank Data Overseer Shrouded in Secrecy By Jennifer Baker, IDG News Business Center October 07, 2010 7:20 AM http://www.investigativeproject.org/ext/7009 …The identity of the chief E.U. overseer of the controversial Swift agreement is shrouded in secrecy. The Swift, or Terrorist Finance Tracking Program (TFTP), came into force on Aug. 1. The bilateral accord gives the U.S. access to European citizens' bank data if they believe there is a terrorist threat. The deal met with much opposition and as a measure of appeasement, the final agreement included demands

14 from the European Parliament to allow an E.U. official to be present in the U.S. when American officials extract and review the data. The European Commission said that an interim overseer had been appointed on Aug. 27 after a call for candidates for the permanent post of TFTP overseer was published on July 29. The Commission has decided to keep the name of the interim overseer secret "for security reasons," but did not elaborate further...

COMMENT / ANALYSIS

41. Ahmadinejad's Lebanon victory lap As West sues for peace, Islamic regime boldly advances By Reza Kahlili The Washington Times 5:09 p.m., Tuesday, October 12, 2010 http://www.washingtontimes.com/news/2010/oct/12/ahmadinejads-lebanon-victory-lap/ Reza Kahlili is a pseudonym for an ex-CIA spy who worked in Iran. He is author of "A Time to Betray" (Simon & Schuster, 2010).

42. Ghailani Trial Underway … and Predictable By Andy McCarthy October 13, 2010 6:48 P.M. National Review Online (The Corner) http://www.nationalreview.com/corner/249710/ghailani-trial-underway-and-predictable-andy-mccarthy

43. Germany's Jihadi Export The country's criminal code should allow the arrest of graduates of Afghan and Pakistani terror camps. By JOHN ROSENTHAL OPINION EUROPE Wall Street Journal October 13, 2010, 4:00 P.M. ET http://online.wsj.com/article/SB10001424052748703673604575549963415398190.html? Mr. Rosenthal writes on European politics and transatlantic security issues for such publications as The Weekly Standard, Policy Review and the Daily Caller.

44. Are Taxpayers Forced to Administer Shariah Law? by Seth Mandel The Weekly Blitz October 13, 2010 http://www.weeklyblitz.net/1033/are-taxpayers-forced-to-administer-shariah-law

45. Groups' Reflexive Rhetoric Ignores Facts IPT News October 15, 2010 http://www.investigativeproject.org/2245/groups-reflexive-rhetoric-ignores-facts

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