Leaping off the pages of Hugh's was scandal #12:
12. Bush authorized warrantless NSA wiretapping in October 2001. However, Joseph Nacchio former CEO of Qwest convicted April 19, 2007 of insider trading reported that the NSA in a meeting on February 27, 2001 (1 month after Bush became President and 6 1/2 months before 9/11) tried to sign Qwest up to a warrantless surveillance program and that when Nacchio refused the NSA pulled hundreds of millions of dollars worth of contracts from the company.
At least part of Nacchio's account is verified by this USA Today article:
...Among the big telecommunications companies, only Qwest has refused to help the NSA, the sources said. According to multiple sources, Qwest declined to participate because it was uneasy about the legal implications of handing over customer information to the government without warrants.
Qwest's refusal to participate has left the NSA with a hole in its database. Based in Denver, Qwest provides local phone service to 14 million customers in 14 states in the West and Northwest. But AT&T and Verizon also provide some services — primarily long-distance and wireless — to people who live in Qwest's region. Therefore, they can provide the NSA with at least some access in that area.
According to sources familiar with the events, Qwest's CEO at the time, Joe Nacchio, was deeply troubled by the NSA's assertion that Qwest didn't need a court order — or approval under FISA — to proceed. Adding to the tension, Qwest was unclear about who, exactly, would have access to its customers' information and how that information might be used.
Financial implications were also a concern, the sources said. Carriers that illegally divulge calling information can be subjected to heavy fines. The NSA was asking Qwest to turn over millions of records. The fines, in the aggregate, could have been substantial.
The NSA told Qwest that other government agencies, including the FBI, CIA and DEA, also might have access to the database, the sources said. As a matter of practice, the NSA regularly shares its information — known as "product" in intelligence circles — with other intelligence groups. Even so, Qwest's lawyers were troubled by the expansiveness of the NSA request, the sources said.
The NSA, which needed Qwest's participation to completely cover the country, pushed back hard.
Trying to put pressure on Qwest, NSA representatives pointedly told Qwest that it was the lone holdout among the big telecommunications companies. It also tried appealing to Qwest's patriotic side: In one meeting, an NSA representative suggested that Qwest's refusal to contribute to the database could compromise national security, one person recalled.
In addition, the agency suggested that Qwest's foot-dragging might affect its ability to get future classified work with the government. Like other big telecommunications companies, Qwest already had classified contracts and hoped to get more.
Unable to get comfortable with what NSA was proposing, Qwest's lawyers asked NSA to take its proposal to the FISA court. According to the sources, the agency refused.
The NSA's explanation did little to satisfy Qwest's lawyers. "They told (Qwest) they didn't want to do that because FISA might not agree with them," one person recalled. For similar reasons, this person said, NSA rejected Qwest's suggestion of getting a letter of authorization from the U.S. attorney general's office. A second person confirmed this version of events.
Interestingly, as reported by the Portland Business Journal an appeals court overturned Nacchio's conviction in March, 2008:
An appeals court overturned the conviction of former Qwest Communications International Inc. CEO Joseph Nacchio on Monday, sending the case back to be retried in district court.
In a 2-1 ruling, the three-judge panel from the 10th Circuit Court of Appeals in Denver ruled that the U.S. District Court's exclusion of testimony from Nacchio's expert witness during the trial resulted in an unfair outcome.
The allegation is peppered throughout the highly redacted documents released by the lower court today, but are most clear in the introduction to this filing (.pdf) from April 2007.Defendant Joseph P. Nacchio ... respectfully renews his objection to the Court's rulings excluding testimony surrounding his February 27, 2001 meeting at Ft. Meade with representatives from the National Security Agency (NSA) as violative of his constitutional right to mount a defense. Although Mr. Nacchio is allowed to tell the jury that he and James Payne went into that meeting expecting to talk about the "Groundbreaker" project and came out of the meeting with optimism about the prospect for 2001 revenue from NSA, the Court has prohibited Mr. Nacchio from eliciting testimony regarding what also occurred at that meeting. [REDACTED] The Court has also refused to allow Mr. Nacchio to demonstrate that the agency retaliated for this refusal by denying the Groundbreaker and perhaps other work to Qwest.
By being prevented from telling his full story to the jury or from fully and properly cross-examining any rebuttal witnesses, Mr. Nacchio has been deprived of the ability to explaoin why - after he came out of the February meeting with a reasonable, good faith, expectation that Qwest would be receiving significant contracts from NSA in 2001 ... Qwest was denied significant work.
[ed note. James Payne, Qwest's government liason who was also at February 27, 2001 meeting, later spoke with government agents in 2006].
In the interview, Mr. Payne confirmed that, at the February 27, 2001 meeting, "[t]here was some discussion about [redacted]. Mr. Payne also stated: Subsequent to the meeting the customer came back and expressed disappointment at Qwest's decision. Payne realized at this time that "no" was not going to be enough for them. Payne said they never actually said no and it went on for years. In meetings after meetings, they would bring it up. At one point, he suggested they just them, "no." Nacchio said it was a legal issue and that they could not do something their general counsel told them not to do. ... Nacchio projected that he might do it if they could find a way to do it legally.
There was a feeling also, that the NSA acted as agents for other government agencies and if Qwest frustrated the NSA, they would also frustrate other agencies.
Apparently there WAS a Fort Meade meeting with representatives of NSA on 27 February, 2001. What was discussed there has been redacted. It is more than reasonable to guess that it was a surveillance program.
And that, ladies and gentlemen, I suppose is that. We won't find out for certain now, Obama and the other quislings having sold out on FISA.
