Dual Loyalties

My opinion on the people who shape our world

Monday, April 04, 2005

Richard Perle, Neocom Darling Is In Trouble With the SEC

Shining Light in Dark Corners: "Richard Perle, Neocom Darling Is In Trouble With the SEC
Perle is one of the architects of the Iraqi invasion and has been agitating about invading Iran. I suspect we will see an attempt by the Bush administration to quash this lawsuit for Bush's corrupt advisor.

Perle is close with Paul Wolfowitz and Douglas Feith, the man who quietly left the Administration when the FBI investigated whether he was passing classified information through unofficial channels to the Israeli's through his involvement in the American-Israel Public Affairs Committee. As Chairman of the Defence Policy Advisory Board, appointed by Rumsfeld in 2001, Perle was involved in an obvious conflict of interest where his former employer was seeking to leverage Homeland Security contracts with Perle's help.

This time, unless Bush can protect him, Perle may be over his head.

The Globe and Mail: SEC may sue Perle over Hollinger

According to an investigation by a special committee of Hollinger International's board last year, Mr. Perle admitted that he signed off on many of the transactions without reading the documents. In a report, the committee sharply criticized Mr. Perle as a "faithless fiduciary" whose "head-in-the-sand behaviour" breached his duty to protect shareholders. The committee also found that Mr. Perle and an affiliated company pocketed more than $7-million in compensation and investments from Hollinger International and a subsidiary. Mr. Perle has denied that his Hollinger benefits had any influence on his decisions as a director. Hollinger International officials, shareholders and the SEC allege that Lord Black and Mr. Radler wrongfully diverted proceeds from the sale of some of the chain's newspapers for their personal use. Mr. Perle said he never profited from the Hollinger deals that investigators have scrutinized.
Complete Article

SEC May Sue Perle Over Hollinger

By OTIS BILODEAU AND PETER ROBISON

Thursday, March 24, 2005 Page B3

Bloomberg, with files from staff

The U.S. Securities and Exchange Commission has warned former Pentagon adviser Richard Perle that it may sue him for his role in the alleged looting of Hollinger International Inc., the Chicago-based media company once controlled by Richard Perle.

Mr. Perle, 63, a Hollinger director, said in a telephone interview that he received and responded to a so-called Wells notice, a formal warning that the agency's enforcement staff has determined that evidence of wrongdoing is sufficient to bring a civil lawsuit.

The enforcement staff, which has reviewed Mr. Perle's response, plans to urge the SEC's commissioners to authorize a suit against him, according to people familiar with the matter.

"We did receive a notice some months ago and we responded at some length," said Mr. Perle, who was the leading architect of U.S. nuclear arms-control policy as assistant secretary of defence from 1981 to 1987, during the administration of president Ronald Reagan. In the 2000 presidential campaign, Mr. Perle was foreign policy adviser to George W. Bush.

If the SEC proceeds with a suit against Mr. Perle, it will mark one of the first times that the regulator has targeted a corporate director of a major company for allegedly failing to protect shareholder interests.

Mr. Perle played a key role on Hollinger International's board as a member of its executive committee with Lord Black and his long-time deputy David Radler. The committee approved a number of controversial transactions that enriched Lord Black and Mr. Radler and are the target of a number of criminal and civil investigations in the United States and Canada.

According to an investigation by a special committee of Hollinger International's board last year, Mr. Perle admitted that he signed off on many of the transactions without reading the documents.

In a report, the committee sharply criticized Mr. Perle as a "faithless fiduciary" whose "head-in-the-sand behaviour" breached his duty to protect shareholders.

The committee also found that Mr. Perle and an affiliated company pocketed more than $7-million in compensation and investments from Hollinger International and a subsidiary.

Mr. Perle has denied that his Hollinger benefits had any influence on his decisions as a director.

Hollinger International officials, shareholders and the SEC allege that Lord Black and Mr. Radler wrongfully diverted proceeds from the sale of some of the chain's newspapers for their personal use.

Mr. Perle said he never profited from the Hollinger deals that investigators have scrutinized.

"I didn't benefit from any of the transactions that they looked at," Mr. Perle said.

Mr. Perle said he didn't recall the specific allegations in the SEC's notice, and he referred questions about them to his lawyer, who didn't respond to requests for comment.

A final decision by the five SEC commissioners on whether to sue may come within two months, a person familiar with the warning to Mr. Perle said. The person didn't say what allegations were made in the Wells notice nor what accusations that a suit, if filed, might make against Mr. Perle.

The board at Hollinger International ousted Lord Black in January, 2004. The company later sued him, saying in a report issued in August that he and other top executives looted the company of more than $400-million over seven years.

Mr. Perle remains on the Hollinger International board.

The SEC in November sued Lord Black, Mr. Radler and Hollinger Inc., the Toronto-based company Lord Black used to control Hollinger International, for fraud. On another legal front in the Hollinger story, a U.S. District court in Chicago barred the SEC from handing over to Lord Black certain unidentified evidence until it issued a final verdict on the matter. The unusual order, which was given at a closed court session, was triggered by a request from the U.S. Attorney in Chicago, which revealed for the first time Tuesday that it was investigating whether fraud occurred when Lord Black and other associates pocketed tens of millions of dollars from his core U.S. newspaper company Hollinger International Inc."

War and Piece: Michael Mobbs, Perle acolyte and Money Man

War and Piece: June 2004 Archives: "This is so unbelievably disturbing. I cannot believe this is my country. Via Salon. Between Ashcroft permitting torture and deporting British journalists, . . . he really should spend some time in a totalitarian prison. Will 60 Minutes please do a story on this?


Posted by Laura at 11:21 PM
Halliburton's sweetheart deal. It's becoming pretty obvious that the office of undersecretary of defense Douglas Feith consulted with the office of vice president Cheney before secretly awarding Halliburton an uncontested $1.9 million contract to develop secret plans for Iraq's oil industry back in October 2002. [The first contract helped make way for Halliburton to be positioned to receive more than $2.4 billion in US-government-funded Iraq oil contracts later on.] As the NYT reports today:

In the fall of 2002, in the preparations for possible war with Iraq, the Pentagon sought and received the assent of senior Bush administration officials, including the vice president's chief of staff, before hiring the Halliburton Company to develop secret plans for restoring Iraq's oil facilities, Pentagon officials have told Congressional investigators . . .

In November 2002, a Pentagon energy group led by Michael H. Mobbs, a political appointee and adviser to Douglas J. Feith, the under secretary of defense, gave Halliburton a $1.9 million "task order," under another contract, to develop secret contingency plans for the Iraqi oil industry.

The proposal was had been described at a meeting in late October of the Deputies Committee, a foreign policy body. Participants included the deputy national security adviser, deputy secretaries of state and defense, deputy director of central intelligence and I. Lewis Libby, Mr. Cheney's chief of staff.

Pentagon officials, including Mr. Mobbs, provided the new details of the oil contracting to staff members of the House Committee on Government Reform at a June 8 briefing.

In a letter faxed Sunday to Mr. Cheney and given to reporters, Representative Henry A. Waxman, the minority leader of the panel, asked him for all records of his office's communications on the oil contracts and for records of Deputies Committee meetings where the Halliburton deals had been discussed.

"These new disclosures appear to contradict your assertions that you were not informed about the Halliburton contracts," Mr. Waxman, Democrat of California, wrote. "They also seem to contradict the administration's repeated assertions that political appointees were not involved in the award of the contracts to Halliburton."


Here's a Fox News-provided biography of Feith's deputy, Michael Mobbs, who looks to be another Perle acolyte (Mobbs, an attorney, served under Perle during Perle's reign as undersecretary of defense during the Reagan administration).

I ran across Mobbs' name yesterday as the point of contact for another multimillion dollar Pentagon contract coming out of Feith's office to SAIC, here (note: .pdf file linked).

But this article is interesting for another reason. Certain people who formerly worked in Feith's office have talked about a number of people from the DC think-tank community participating in a secret Feith-run group looking at Iraq's oil industry, months before the administration declared its intentions to go to war in Iraq. I suppose that would be the Pentagon energy group described above. I was told these consultants worked out of the Pentagon basement. As yet, this story hasn't fully been told that I have seen.

Addendum: More on Michael Mobbs. Correspondent TM writes, "You should lay [your] hands on the new Atlantic. There’s an article by Benjamin Wittes on the Padilla and Hamdi cases. Mobbs, according to the article, is the one who wrote the government declarations on the two which were filed with the Fourth Circuit last year. Hamdi’s lawyer can’t reveal his classified conversations with his client but strongly insinuates that the declaration is (shockingly I know) demonstrably untrue.

This article isn’t available online as far as I can tell but it’s worth reading."

Thanks for the letters. Readers, take note.

Meanwhile, much good stuff in the Center for American Progress's Tuesday "Progress Report" on Halliburton's sweetheart Pentagon Iraq contracts, thanks to Mssrs. Cheney, Feith and Mobbs.

Posted by Laura at 05:56 PM
Slate's Eric Umansky has a new eponymous blog up, here, and already has an interesting post up about the commission investigating the US's WMD intelligence. Big welcome to the competition!"

FOXNews.com - Michael H. Mobbs worked for Richard Perle

FOXNews.com - U.S. & World - Bio: Michael H. Mobbs: "Bio: Michael H. Mobbs
Wednesday, April 23, 2003

Michael H. Mobbs is the Civil Administration Coordinator for the Office of Reconstruction and Humanitarian Assistance. He also serves as Special Advisor to the Under Secretary of Defense for Policy.

Mr. Mobbs' other recent assignments in the Department of Defense include serving as head of the Energy Infrastructure Planning Group, an interagency group that developed contingency plans on post-conflict energy matters.

From January 1982 until December 1985, Mr. Mobbs served as the Secretary of Defense Representative to the Strategic Arms Reduction Talks for Caspar Weinberger and Assistant Secretary Richard Perle. In December 1985, President Reagan appointed Mr. Mobbs as Assistant Director (Strategic Programs) of the U.S. Arms Control and Disarmament Agency, following Senate confirmation. In that position, Mr. Mobbs dealt with ballistic missile defense research, development and testing matters, Anti-Ballistic Missile Treaty issues and intermediate-range nuclear force negotiations, as well as strategic arms negotiations with the Soviet Union.

An attorney by profession, Mr. Mobbs has over twenty years of experience in the private law practice concentrating in international commercial transactions and corporate matters, including cross-border investments, finance, privatization, defense conversion, and international business disputes. His geographic specialty is Russia and Eastern Europe. He is fluent in Russian and has served as the managing partner in the Moscow and Budapest offices of several major U.S. law firms.


Mr. Mobbs is a graduate of Yale University, where he received a B.A. (summa cum laude) with exceptional distinction in Russian Studies. He holds a J.D. from the University of Chicago Law School. He has published numerous articles on international legal and security issues.

Source: Office of Reconstruction and Humanitarian Assistance"

Mobbs and Scooter Libby Funneled Money to Haliburton

THE GLOBAL BEAT-RESOURCES FOR THE GLOBAL JOURNALIST: "CHENEY'S CHIEF OF STAFF ALLEGEDLY SAT IN ON HALLIBURTON DISCUSSIONS
Dick Cheney casually remarked on NBC's Meet the Press in September 2003 that he had no role or knowledge in the awarding of a $7 billion contract to his former company, Halliburton, for reconstruction in Iraq. The Contract went against normal Defense Department procedure since no competitive bidding was allowed, and Halliburton was already under investigation over other contracts. California Congressman Henry Waxman says that he has learned now that Cheney's chief of staff, Lewis 'Scooter' Libby, was in fact present during at least two meetings discussing the contracts, which were awarded by Bush political appointees rather than civil service experts. The political appointees were reportedly led by Michael Mobbs, a special advisor to under secretary of defense, Douglas Feith. (Joshua Chaffin, Financial Times, June 14, 2004)
�Henry Waxman's letter to Cheney and other documents on the Halliburton scandal (Henry Waxman, U.S. Congress, June 2004)"

Mobbs Close to Perle and Feith

a relative path: April 2003 Archives: "Movers and Shakers in Postwar Iraq
I was sent a link to an "outstanding article on the people and companies":http://www.sundayherald.com/33021 who stand to profit the most from the Iraqi reconstruction. A sample: bq. *Michael Mobbs* bq. Pentagon lawyer and overall civilian co-ordinator who will be in charge of 11 of the ministries. bq. Mobbs wants US citizens imprisoned indefinitely without charge for terrorist offences. A notorious hawk and close friend of Richard Perle, Mobbs also worked for Douglas Feith?s law firm. bq. Currently a Pentagon consultant, he created the legal framework for the indefinite detention of al-Qaeda suspects at Camp X-Ray in Guantanamo Bay, which was built by Bechtel (see The businesses) for $16m (?10m). Also a former member of the US arms control agency under former president Ronald Reagan. I think we owe it to ourselves to look long and hard at the new face of a America showing itself in the colonial administration of Iraq. Thanks Matt!"

Michael H. Mobbs Under Oath on Jose Padilla

frontline: chasing the sleeper cell: counterterrorism tools: the mobbs declaration on padilla | PBS: "

Declaration of Michael H. Mobbs
Special Advisor to the Under Secretary of Defense for Policy

Padilla v. Bush, No. 02 Civ. 4445 (S.D.N.Y.)

Declaration of Michael H. Mobbs
Special Advisor to the Under Secretary of Defense for Policy

Pursuant to 28 U.S.C. § 1746, I, Michael H. Mobbs, Special Advisor to the Under Secretary of Defense for Policy, hereby declare that, to the best of my knowledge, information and belief, and under the penalty of perjury, the following is true and correct:

1. I am a government employee (GS-15) of the U.S. Department of Defense and serve as a Special Advisor to the Under Secretary of Defense for Policy. The Under Secretary of Defense for Policy is appointed by the President and confirmed by the Senate. He is the principal staff assistant and advisor to the Secretary and Deputy Secretary of Defense for all matters concerning the formulation of national security and defense policy and the integration and oversight of DoD policy and plans to achieve national security objectives. The Under Secretary of Defense for Policy has directed me to head his Detainee Policy Group. Since mid-February 2002, I have been substantially involved with matters related to the detention of enemy combatants in the current war against the Al Qaeda terrorists and those who support and harbor them (including the Taliban).

2. As part of my official duties, I have reviewed government records and reports about Jose Padilla (also known as "Abdullah al Muhajir" and "Ibrahim Padilla") relevant to the President's June 9, 2002 determination that Padilla is an enemy combatant and the President's order that Padilla be detained by U.S. military forces as an enemy combatant.

3. The following information about Padilla's activities with the Al Qaeda terrorist network was provided to the President in connection with his June 9, 2002 determination. This information is derived from multiple intelligence sources, including reports of interviews with several confidential sources, two of whom were detained at locations outside of the United States. The confidential sources have direct connections with the Al Qaeda terrorist network and claim to have knowledge of the events described. Certain aspects of these reports were also corroborated by other intelligence information when available.

4. Padilla was born in New York. He was convicted of murder in Chicago in approximately 1983 and incarcerated until his eighteenth birthday. In Florida in 1991, he was convicted of a handgun charge and sent to prison. After his release from prison, Padilla began referring to himself as Ibrahim Padilla. In 1998, he moved to Egypt and was subsequently known as Abdullah Al Muhajir. In 1999 or 2000 Padilla traveled to Pakistan. He also traveled to Saudi Arabia and Afghanistan.

5. During his time in the Middle East and Southwest Asia, Padilla has been closely associated with known members and leaders of the Al Qaeda terrorist network.

6. While in Afghanistan in 2001, Padilla met with senior Usama Bin Laden lieutenant Abu Zubaydah. Padilla and an associate approached Zubaydah with their proposal to conduct terrorist operations within the United States. Zubaydah directed Padilla and his associate to travel to Pakistan for training from Al Qaeda operatives in wiring explosives.

7. Padilla and his associate conducted research in the construction of a "uranium-enhanced" explosive device. In particular, they engaged in research on this topic at one of the Al Qaeda safehouses in Lahore, Pakistan.

8. Padilla's discussions with Zubaydah specifically included the plan of Padilla and his associate to build and detonate a "radiological dispersal device" (also known as a "dirty bomb") within the United States, possibly in Washington, DC. The plan included stealing radioactive material for the bomb within the United States. The "dirty bomb" plan of Padilla and his associate allegedly was still in the initial planning stages, and there was no specific time set for the operation to occur.

9. In 2002, at Zubaydah's direction, Padilla traveled to Karachi, Pakistan to meet with senior Al Qaeda operative to discuss Padilla's involvement and participation in terrorist operations targeting the United States. These discussions included the noted "dirty bomb" plan and other operations including the detonation of explosives in hotel rooms and gas stations. The Al Qaeda officials held several meetings with Padilla. It is believed that Al Qaeda members directed Padilla to return to the United States to conduct reconnaissance and/or other attacks on behalf of Al Qaeda.

10. Although one confidential source stated that he did not believe that Padilla was a "member" of Al Qaeda, Padilla has had significant and extended contacts with senior Al Qaeda members and operatives. As noted, he acted under the direction of Zubaydah and other senior Al Qaeda operatives, received training from Al Qaeda operatives in furtherance of terrorist activities, and was sent to the United States to conduct reconnaissance and/or other attacks on their behalf.

11. Padilla traveled from Pakistan to Chicago via Switzerland and was apprehended by federal officials on May 8, 2002, upon arrival in the United States. Pursuant to court order, Padilla was held by the U.S. Marshals Service as a material witness in a grand jury investigation.

12. On June 9, 2002, George W. Bush, as President of the United States and Commander in Chief of the U.S. armed forces, determined that Jose Padilla is, and was at the time he entered the United States in May 2002, an enemy combatant in the ongoing war against international terrorism, including the Al Qaeda international terrorist organization. A redacted version of the President's determination is attached at Tab 1.

13. The President specifically determined that Padilla engaged in conduct that constituted hostile and war-like acts, including conduct in preparation for acts of international terrorism that had the aim to cause injury to or adverse effects on the United States.

14. The President further determined that Padilla posed a continuing, present and grave danger to the national security of the United States, and that detention of Padilla as an enemy combatant was necessary to prevent him from aiding Al Qaeda in its efforts to attack the United States or its armed forces, other governmental personnel, or citizens.

15. On June 9, 2002, the President directed the Secretary of Defense to detain Padilla as an enemy combatant.

16. On June 9, 2002, acting on the President's direction, the Secretary of Defense ordered the U.S. armed forces to take control of Padilla as an enemy combatant and to hold him at the Naval Consolidated Brig, Charleston, South Carolina.


[Signed]
MICHAEL H. MOBBS
Special Advisor to the
Under Secretary of Defense for Policy

Dated: 27 August 2002"