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ISRAELI SPIES WHO CAME IN FROM THE ART SALE

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Aug 29, 2004, 1:32:37 AM8/29/04
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http://www.atlanta.creativeloafing.com/2002-03-20/fishwrapper.html

March 20, 2002

Update: The spies who came in from the art sale

Creative Loafing has obtained a report detailing alleged Israeli
spy activity in the United States.

BY JOHN SUGG

Editor's note: Portions of the report mentioned in this article can
be found at http://atlanta.creativeloafing.com/2002-03-20/news_dea.pdf.

A major international espionage saga is unfolding across the United
States, with some of its roots right here in the Atlanta area. It's
been pretty hush-hush so far, largely because the implications could
be a major embarrassment for the government.

The spy story is even more touchy because it isn't Saddam, Fidel,
Osama or even what passes nowadays for the KGB spying on America
-- but our "friend" in the war against "evil," Israel.

The basis of the spy allegations is a 60-page document -- a compilation
of field reports by Drug Enforcement Administration agents and other
U.S. law enforcement officials.

Creative Loafing last week obtained a copy of the report from
intelligence sources with long-term contacts among both Israeli and
American agencies. The government has attempted to deflect attention
from earlier leaks about the spy scandal. However, while declining
to confirm or deny the authenticity of the document, a spokesman
for the DEA, William Glaspy, did acknowledge that the agency had
received many reports of the nature described in the 60 pages.

A source familiar with the creation of the document has told CL
that the 60-page memo was a draft intended as the base for a 250-page
report. The larger report has not been produced because of the
volatile nature of suggesting that Israel spies on America's deepest
secrets.

Another DEA spokesperson, Rogene Waite, told Associated Press a
draft document had been compiled and forwarded to other agencies.

The validity of the scenarios described in the document is attested
to in at least one official mention. The Office of the National
Counterintelligence Executive, in a March 2001 summary, reported
on "suspicious visitors to federal facilities" and noted the type
of "aggressive" activity recounted in the document obtained by the
Planet.

The nation's most prominent Jewish newspaper, the New York-based
Forward, also has confirmed portions of the vast spying network --
although stating that the Israelis were monitoring Arabs in the
United States, not trying to access U.S. secrets. Referring to the
arrest of five Israeli employees of a New Jersey moving company who
were arrested and held for two months after the Sept. 11 attack,
Forward on March 15 stated: "According to one former high-ranking
American intelligence official, who asked not to be named, the FBI
came to the conclusion at the end of its investigation that the
five Israelis ... were conducting a Mossad surveillance mission and
that their employer, Urban Moving Systems of Weehawken, N.J., served
as a front."

Forward also reported that a counterintelligence probe concluded
two of the men were operatives of Mossad, Israel's spy service.

Reports of the spying were first made public in December broadcasts
by Fox News reporter Carl Cameron. It isn't clear whether he had
the 60-page document or was only told its contents. A French online
news service has obtained the report, and Le Monde in Paris has
advanced the story. However, in the United States, the media ignored
the original Fox broadcast, and only a handful of publications. The
Atlanta Journal-Constitution hasn't reported the story although
another Cox-owned paper, The Palm Beach Post has.

The absence of reporting hasn't gone unnoticed. The authoritative
British intelligence and military analysis service, Jane's Information
Group, on March 13 chided: "It is rather strange that the U.S. media
... seem to be ignoring what may well prove to be the most explosive
story since the 11 September attack, the alleged breakup of a major
Israeli espionage operation in the United States which aimed to
infiltrate both the Justice and Defense departments and which may
also have been tracking al-Qaida terrorists before the aircraft
hijackings took place."

In flat language and sometimes excruciating bureaucratic detail,
the document relates scores of encounters between federal agents
and Israelis describing themselves as art students. The implication
is that the seemingly innocuous cover was used to gain access to
sensitive U.S. offices and military installations. For example,
Paragraph 82 of the document states that MacDill Air Force Base
intelligence officers were warned in March 2001 of the art students'
efforts. A month later, a special alert was issued about a "possible
intelligence collection effort" at Tinker Air Force Base in Oklahoma
City. Among other activities, the base houses AWACS surveillance
planes and repairs B-1 bombers.

The author of the document is not identified. However, many DEA and
other law enforcement agents are named. CL has contacted some of
the named agents, and three federal employees have confirmed the
incidents described in the report. None disputed the authenticity
of the report. One senior DEA official, when read paragraphs that
mentioned him, said: "Absolutely, that's my report," adding, however,
that he didn't think the incidents were sufficient to prove an
ongoing spy operation. All of the federal employees said they could
not be quoted by name.

The specific incidents are richly chronicled, down to names, drivers'
license numbers, addresses and phone numbers of the Israelis.

Perhaps most intriguing, the Israelis' military and intelligence
specialties are listed: "special forces," "intelligence officer,"
"demolition/explosive ordnance specialist," "bodyguard to head of
Israeli army," "electronic intercept operator" -- even "son of a
two-star (Israeli) army general."

"The activities of these Israeli art students raised the suspicion
of (the DEA's Office of Security Programs) and other field offices
when attempts were made to circumvent the access control systems
at DEA offices, and when these individuals began to solicit their
paintings at the homes of DEA employees," the document states. "The
nature of the individuals' conduct, combined with intelligence
information and historical information regarding past incidents
(involving Israelis leads the DEA) to believe the incidents may
well be an organized intelligence gathering activity."

The document also links the Israelis to possible drug investigations.
The report states: "DEA Orlando has developed the first drug nexus
to this group. Telephone numbers obtained from an Israeli Art Student
encountered at the Orlando (district office) have been linked to
several ongoing DEA MDMA (Ecstasy) investigations in Florida,
California, Texas, and New York."

Much of the Israeli activity, according to the report, centered on
Florida. In addition to attempting to gain access to government
installations, the document states that the Israelis approached
many intelligence agents, prosecutors and federal marshals at their
homes -- including one incident on Davis Islands.

In researching this story, the CL has learned of other encounters
not included in the 60-page report. For example, a member of Congress
from Georgia recounted to CL of being targeted by the art students
on two occasions. A Tampa state court judge was also approached.
Neither the member of Congress nor the judge wanted to be named.

In an era where CNN CEO Walter Issacson says it would be "perverse"
to televise Afghan babies killed by U.S. bombs, it's not surprising
some stories go unnoticed by a press that embraces "patriotism" by
ignoring sacred cows.

One such sacred cow is what's happening in Israel and Palestine.
Reporters know that to criticize Israel -- to point out, for example,
that wanton killing of innocents is equally devilish, whether
committed by Ariel Sharon's soldiers flying U.S.-made helicopters,
or by a Hamas suicide bomber who pushes the button -- is to risk
being called an anti-Semite. It's a tired canard meant to bludgeon
debate into silence, but it's often effective.

Even with that background, however, it's a little hard to understand
the media's avoidance of the spy story. In 1999, word began spreading
among intelligence agencies about bands of Israeli "students" doing
very strange things, such as popping up around federal buildings
and military establishments marketing artwork.

According to CL intelligence sources, low-level alerts began being
flashed around to offices of the FBI, DEA, federal prosecutors and
others. By March 23, 2001, counterintelligence officials had issued
a bulletin to be on the watch for Israelis masquerading as "art
students." The alert stated that there was an "ongoing 'security
threat' in the form of individuals who are purportedly 'Israeli
National Art Students' that are targeting government offices selling
'artwork.'"

At the same time, American intelligence services were increasingly
worried by the dominance of many highly sensitive areas of
telecommunications by Israeli companies. Comverse Infosys (now
called Verint) provides U.S. lawmen with computer equipment for
wiretapping. Speculation is that "catch gates" in the system allowed
listeners to be listened to. Software made by another Israeli outfit,
Amdocs, provided extensive records of virtually all calls placed
by the 25 largest U.S. telephone companies. The relationship of
those companies to the detained Israelis is detailed in the 60-page
document.

The DEA's intense interest in the case stems from its 1997 purchase
of $25-million in interception equipment from Israeli companies,
according to a March 14 report by Intelligence Online, a French
Web-based service that first revealed the existence of the 60-page
document.

"In assigning so many resources to the inquiry (all DEA offices
were asked to contribute)," Intelligence Online stated. "The agency
was clearly worried that its own systems might have been compromised."

Often the Israeli "students" sold their artwork on street locations
near federal buildings. In Tampa on March 1, 2001, a DEA agent heard
a knock on his office door. According to the government report: "At
the door was a young female who immediately identified herself as
an Israeli art student who had beautiful art to sell." Knowing about
the security alert, the agent began questioning the "student." After
several contradictory statements, the agent concluded "her responses
were evasive at best."

Elsewhere, the document notes that the students were "persistent"
in trying to gain access to the homes of law enforcement personnel.

On other occasions, the "students" showed up at homes of intelligence
agents, judges and other government employees. The report describes
a December 2000 incident when a man and a woman knocked on the door
of an Atlanta DEA agent. "Both subjects claimed to be Israeli art
students," the document states. "The Special Agent examined some
of the artwork, but became suspicious when the students would not
provide him with a contact telephone number.... Subsequently, the
Special Agent saw someof the exact same artwork for sale at [a]kiosk
in the Mall of Georgia."

Many of the apparent operatives had set up shop at addresses only
stones' throws from Arabs in San Diego, Little Rock, Irving, Texas,
and in South Florida. The Planet also has obtained a watch list of
mostly Arabs under scrutiny by the U.S. government. The addresses
of many correspond to the specific areas where the Israelis established
bases.

For example, an address for the Sept. 11 hijacking leader, Mohammad
Atta, is 3389 Sheridan St. in Hollywood, Fla., only a few blocks
and a few hundred feet from the address of some of the Israelis,
at 4220 Sheridan.

A dozen Israelis, including the alleged surveillance leader, had
been based in Hollywood, Fla., between January and June last year
-- quite possibly watching Arabs living nearby who are suspected
of providing logistical support to Osama bin Laden's network.
Especially in Florida, where 10 of the 19 Sept. 11 terrorists lived,
the revelations about the Israeli activities bolster speculation,
reported by a Fox news reporter, that the students-cum-spies might
have gained advance knowledge of aspects of the Sept. 11 terrorists
-- and not passed on that critical intelligence to the United States.
CL sources with Israeli connections suggest that the information
might have been relayed to U.S. agencies, but might have been ignored
or overlooked.

Despite the highly suspect behavior of the Israelis, the media
hadn't picked up on the story.

Then came Sept. 11. While America was mesmerized by the "War on
Terrorism," the media went out to a four-martini lunch when it came
to skeptical reporting.

With a few commendable exceptions. One of those is Carl Cameron, a
gutsy reporter for Fox News. On Dec. 12, Cameron broke the blockbuster
spy story. He said at the time: "Since Sept. 11, more than 60
Israelis have been arrested or detained, either under the new PATRIOT
anti-terrorism law, or for immigration violations. A handful of
active Israeli military were among those detained, according to
investigators, who say some of the detainees also failed polygraph
questions when asked about alleged surveillance activities against
and in the United States."

Fox also reported the Israeli "students" "targeted" U.S. military
bases -- which is bolstered by the report obtained by the CL.

In the rest of the world -- Europe, Arab countries and Israel,
especially -- the story made headlines. Even the official Chinese
news agency perked up. Not in our well-defended (against disturbing
news) homeland, however.

Cameron, in an interview, said he doesn't believe the conspiracy
theories about why the story was ignored here. An honest scribe,
he points to a shortcoming in his own work -- one hammered on by
Israeli critics at the time -- conceding "there were no (on the
record) interviews. I didn't tell other reporters where to find the
documents. They couldn't do instant journalism."

Others at Fox confirm there was intense pressure on the network by
pro-Israeli lobbying groups, such as the Anti-Defamation League and
the misnamed Committee for Accuracy in Middle East Reporting (CAMERA).

"These charges are arrant nonsense unworthy of the usually reliable
Fox News," CAMERA huffed in a Dec. 12 release.

Cameron reported Dec. 13 that federal agents were afraid to criticize
Israel. "Investigators within the DEA, INS and FBI have all told
Fox News that to pursue or even suggest Israeli spying ... is
considered career suicide."

Cameron told me in similar language that's what journalists also
can face. And, what's clear is that Fox quickly removed the story
from its Web site. (It was reposted this month by Fox after other
media began showing interest in the story.)

After Cameron's initial reports, the story pretty much evaporated
in the United States before Christmas. Then, all hell broke loose
in the last few weeks. Intelligence Online in France obtained the
same 60-page June 2001 federal report that CL has. The French Web
site reported that 120 Israelis had by now been detained or deported
by U.S. authorities.

Let's repeat that: 120 potential spies. This isn't worth press
curiosity?

Few papers have given the story significant space. Many, like the
AJC, haven't uttered a peep.

Some of what has seeped out is disturbing. The Oklahoman, prompted
by the French articles, reported last week that 10 months ago four
Israelis peddling artwork (but carrying military IDs) were detained
near sensitive Tinker Air Force Base in Oklahoma. Le Monde in Paris
recounted that six intercepted "students" had cell phones purchased
by an Israeli vice consul in the United States. Sources told me
that many of the phones had a walkie-talkie feature that was virtually
impossible to intercept.

Bush administration shills were quick to try to spin the story --
perhaps to minimize damage should it turn out the government did
have information in advance about the people or activities that led
to the Sept. 11 attack. A Justice Department spokesperson, Susan
Dryden, called the spy report an "urban myth," and other federal
flacks trumpeted that no Israeli had been charged with or deported
for spying. Of course, in the Great Game, "friendly" spies are
seldom embarrassed by being called by their true colors. The Israelis
who have been deported have been given the boot because of visa
expirations and other minor violations.

The Washington Post, which apparently doesn't have the 60-page
document, nonetheless reported March 6 that unnamed law enforcement
officials had told the paper that a "disgruntled" DEA agent had
compiled the report after other federal agencies didn't react to
the Israelis' suspicious behavior. The Post, however, also quoted
a DEA spokesman who acknowledged that the large number of incident
reports had been combined into a draft memo. As with CL's inquiry,
the DEA spokesman wouldn't confirm for the Post whether the memo
was the 60-page document.

Predictably, Israeli Embassy spokesman Mark Reguev derided the
Intelligence Online report as "nonsense."

And, pro-Israeli apologists such as anti-Arab ideologue Daniel Pipes
quickly took the field with strident polemics. Pipes, who makes no
claim of having seen the 60-page document, nonetheless claimed in
a March 11 column that the story was a "dangerous falsehood" and
that "U.S. journalists found not a shred of evidence to support"
it.

The fact that reporters were beginning to piece together real shreds
was blithely ignored by Pipes.

Israel in the past has belligerently denied wrongdoing until long
after the truth was obvious. Israel claimed Jonathan Pollard -- a
super spy who did horrendous, deadly damage to the United States
until arrested in 1985 - wasn't an agent. And, Israel has stubbornly
contended its 1967 attack on the USS Liberty, in which 35 American
sailors were slaughtered, was an accident -- a lie exposed in recent
reports including one last fall on the History Channel. A recent
authoritative book, Body of Secrets, by James Bamford, concludes
that National Security Agency officials "were virtually unanimous
in their belief that the attack was deliberate."

With the purported art students, it's likely that denial will reach
screeching levels. The Bush administration would find it difficult
to explain why it either ignored or discounted such a large espionage
operation.

Senior Editor John Sugg can be reached at 404-614-1241.

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