Category Archives: DOJ, DC and inside the Beltway

Abraham Lincoln, Yesterday and Today

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The Gettysburg National Cemetery was dedicated by President Abraham Lincoln a brief four months after the Battle. Lincoln’s speech lasted only two minutes, but it went into history as the immortal Gettysburg Address.

“Four score and seven years ago, our fathers brought forth on this continent a new nation: conceived in liberty, and dedicated to the proposition that all men are created equal.

Now we are engaged in a great civil war. . .testing whether that nation, or any nation so conceived and so dedicated. . . can long endure. We are met on a great battlefield of that war.

We have come to dedicate a portion of that field as a final resting place for those who here gave their lives that that nation might live. It is altogether fitting and proper that we should do this.

But, in a larger sense, we cannot dedicate. . .we cannot consecrate. . . we cannot hallow this ground. The brave men, living and dead, who struggled here have consecrated it, far above our poor power to add or detract. The world will little note, nor long remember, what we say here, but it can never forget what they did here. It is for us the living, rather, to be dedicated here to the unfinished work which they who fought here have thus far so nobly advanced.

It is rather for us to be here dedicated to the great task remaining before us. . .that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion. . . that we here highly resolve that these dead shall not have died in vain. . . that this nation, under God, shall have a new birth of freedom. . . and that government of the people. . .by the people. . .for the people. . . shall not perish from the earth. “

Here’s a review of seven myths and mysteries about the Address.

1. Lincoln wrote the speech on the back of an envelope

This is perhaps the biggest myth about the Gettysburg Address. Lincoln started working on his remarks shortly after the battle was fought in July 1863, according to Lincoln experts. Several drafts of the speech also exist that were written before November 19, 1863.

2. Lincoln wrote the speech on the train ride from Washington to Gettysburg

That’s another big myth that is easy to debunk. The draft copies of the speech are in Lincoln’s normal, steady handwriting. Given the bumpy nature of train travel in 1863, at least one of the drafts would have uneven handwriting. What is known is that Lincoln didn’t have a final version of the speech done until he arrived in Gettysburg.

3. Lincoln omitted the words “under God” form the original speech

We’ve reported on this story before and it is true the two early drafts of the speech don’t have the words “under God” in the copy. But at least four newspaper accounts, written by reporters in the audience, include the words in the transcript of the live speech, and they were in three additional versions of the speech written by Lincoln after the event.

4. Where exactly did Lincoln give the speech?

That is a point that is still contested. Of course, the speech was in Gettysburg, but the question is where was the location of the speakers’ platform? One modern theory is that the speech was given from a platform inside Evergreen Cemetery, which was next to the Soldiers National Cemetery that was being dedicated.

5. How many known photographs are there of Lincoln giving the speech?

There are no pictures of Lincoln giving the speech and there is one confirmed picture of him at the event called the Bachrach photo. There may be a second picture, based on recent claims about another photo that contains the image of a man with a beard and a stove top hat in the crowd near the platform.

6. Did Lincoln give the “real” Gettysburg Address?

Technically, famed orator Edward Everett was the featured speaker of the day and he spoke for about two hours before Lincoln made his brief “dedicatory remarks.”

7. Did everyone love the speech after Lincoln gave it?

Everett certainly liked it and he told Lincoln, “I should be glad, if I could flatter myself that I came as near to the central idea of the occasion, in two hours, as you did in two minutes.” Pro-Union newspapers praised it.

The speech was interrupted by applause, but how much applause and when it happened is still a subject of debate. But Democrats quickly criticized the speech, since they were Lincoln’s avowed opponents north of the Mason-Dixon line. A correspondent for the Times of London called the speech “dull and commonplace.” The Chicago Times claimed Lincoln insulted the fallen soldiers the ceremony was supposed to honor. Another critic, a Harrisburg newspaper, had harsher comments (and just apologized for them last week as the 150th anniversary approached).

 

Immigration Before Obama, Bush,Clinton

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How Eisenhower solved illegal border crossings from Mexico

By John Dillin

WASHINGTON — George W. Bush isn’t the first Republican president to face a full-blown immigration crisis on the US-Mexican border.

Fifty-three years ago, when newly elected Dwight Eisenhower moved into the White House, America’s southern frontier was as porous as a spaghetti sieve. As many as 3 million illegal migrants had walked and waded northward over a period of several years for jobs in California, Arizona, Texas, and points beyond.

President Eisenhower cut off this illegal traffic. He did it quickly and decisively with only 1,075 United States Border Patrol agents – less than one-tenth of today’s force. The operation is still highly praised among veterans of the Border Patrol.

Although there is little to no record of this operation in Ike’s official papers, one piece of historic evidence indicates how he felt. In 1951, Ike wrote a letter to Sen. William Fulbright (D) of Arkansas. The senator had just proposed that a special commission be created by Congress to examine unethical conduct by government officials who accepted gifts and favors in exchange for special treatment of private individuals.

General Eisenhower, who was gearing up for his run for the presidency, said “Amen” to Senator Fulbright’s proposal. He then quoted a report in The New York Times, highlighting one paragraph that said: “The rise in illegal border-crossing by Mexican ‘wetbacks’ to a current rate of more than 1,000,000 cases a year has been accompanied by a curious relaxation in ethical standards extending all the way from the farmer-exploiters of this contraband labor to the highest levels of the Federal Government.”

Years later, the late Herbert Brownell Jr., Eisenhower’s first attorney general, said in an interview with this writer that the president had a sense of urgency about illegal immigration when he took office.

America “was faced with a breakdown in law enforcement on a very large scale,” Mr. Brownell said. “When I say large scale, I mean hundreds of thousands were coming in from Mexico [every year] without restraint.”

Although an on-and-off guest-worker program for Mexicans was operating at the time, farmers and ranchers in the Southwest had become dependent on an additional low-cost, docile, illegal labor force of up to 3 million, mostly Mexican, laborers.

According to the Handbook of Texas Online, published by the University of Texas at Austin and the Texas State Historical Association, this illegal workforce had a severe impact on the wages of ordinary working Americans. The Handbook Online reports that a study by the President’s Commission on Migratory Labor in Texas in 1950 found that cotton growers in the Rio Grande Valley, where most illegal aliens in Texas worked, paid wages that were “approximately half” the farm wages paid elsewhere in the state.

Profits from illegal labor led to the kind of corruption that apparently worried Eisenhower. Joseph White, a retired 21-year veteran of the Border Patrol, says that in the early 1950s, some senior US officials overseeing immigration enforcement “had friends among the ranchers,” and agents “did not dare” arrest their illegal workers.

Walt Edwards, who joined the Border Patrol in 1951, tells a similar story. He says: “When we caught illegal aliens on farms and ranches, the farmer or rancher would often call and complain [to officials in El Paso]. And depending on how politically connected they were, there would be political intervention. That is how we got into this mess we are in now.”

Bill Chambers, who worked for a combined 33 years for the Border Patrol and the then-called US Immigration and Naturalization Service (INS), says politically powerful people are still fueling the flow of illegals.

During the 1950s, however, this “Good Old Boy” system changed under Eisenhower – if only for about 10 years.

In 1954, Ike appointed retired Gen. Joseph “Jumpin’ Joe” Swing, a former West Point classmate and veteran of the 101st Airborne, as the new INS commissioner.

Influential politicians, including Sen. Lyndon B. Johnson (D) of Texas and Sen. Pat McCarran (D) of Nevada, favored open borders, and were dead set against strong border enforcement, Brownell said. But General Swing’s close connections to the president shielded him – and the Border Patrol – from meddling by powerful political and corporate interests.

One of Swing’s first decisive acts was to transfer certain entrenched immigration officials out of the border area to other regions of the country where their political connections with people such as Senator Johnson would have no effect.

Then on June 17, 1954, what was called “Operation Wetback” began. Because political resistance was lower in California and Arizona, the roundup of aliens began there. Some 750 agents swept northward through agricultural areas with a goal of 1,000 apprehensions a day. By the end of July, over 50,000 aliens were caught in the two states. Another 488,000, fearing arrest, had fled the country.

By mid-July, the crackdown extended northward into Utah, Nevada, and Idaho, and eastward to Texas.

By September, 80,000 had been taken into custody in Texas, and an estimated 500,000 to 700,000 illegals had left the Lone Star State voluntarily.

Unlike today, Mexicans caught in the roundup were not simply released at the border, where they could easily reenter the US. To discourage their return, Swing arranged for buses and trains to take many aliens deep within Mexico before being set free.

Tens of thousands more were put aboard two hired ships, the Emancipation and the Mercurio. The ships ferried the aliens from Port Isabel, Texas, to Vera Cruz, Mexico, more than 500 miles south.

The sea voyage was “a rough trip, and they did not like it,” says Don Coppock, who worked his way up from Border Patrolman in 1941 to eventually head the Border Patrol from 1960 to 1973.

Mr. Coppock says he “cannot understand why [President] Bush let [today’s] problem get away from him as it has. I guess it was his compassionate conservatism, and trying to please [Mexican President] Vincente Fox.”

There are now said to be 12 million to 20 million illegal aliens in the US. Of the Mexicans who live here, an estimated 85 percent are here illegally.

One day in 1954, Border Patrol agent Walt Edwards picked up a newspaper in Big Spring, Texas, and saw some startling news. The government was launching an all-out drive to oust illegal aliens from the United States.

The orders came straight from the top, where the new president, Dwight Eisenhower, had put a former West Point classmate, Gen. Joseph Swing, in charge of immigration enforcement.

General Swing’s fast-moving campaign soon secured America’s borders – an accomplishment no other president has since equaled. Illegal migration had dropped 95 percent by the late 1950s.

Several retired Border Patrol agents who took part in the 1950s effort, including Mr. Edwards, say much of what Swing did could be repeated today.

“Some say we cannot send 12 million illegals now in the United States back where they came from. Of course we can!” Edwards says.

Donald Coppock, who headed the Patrol from 1960 to 1973, says that if Swing and Ike were still running immigration enforcement, “they’d be on top of this in a minute.”

William Chambers, another ’50s veteran, agrees. “They could do a pretty good job” sealing the border.

Edwards says: “When we start enforcing the law, these various businesses are, on their own, going to replace their [illegal] workforce with a legal workforce.”

While Congress debates building a fence on the border, these veterans say other actions should have higher priority.

1. End the current practice of taking captured Mexican aliens to the border and releasing them. Instead, deport them deep into Mexico, where return to the US would be more costly.

2. Crack down hard on employers who hire illegals. Without jobs, the aliens won’t come.

3. End “catch and release” for non-Mexican aliens. It is common for illegal migrants not from Mexico to be set free after their arrest if they promise to appear later before a judge. Few show up.

The Patrol veterans say enforcement could also be aided by a legalized guest- worker program that permits Mexicans to register in their country for temporary jobs in the US. Eisenhower’s team ran such a program. It permitted up to 400,000 Mexicans a year to enter the US for various agriculture jobs that lasted for 12 to 52 weeks.

We Pray for you Israel

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Attack at Synagogue

November 18, 2014

A terrorist attack on Tuesday at a synagogue in Har Nof in West Jerusalem killed five people, including three U.S. citizens, and injured several others. The Popular Front for the Liberation of Palestine (PFLP) – one of six active designated foreign terrorist organizations – has claimed responsibility, though this remains unverified. This attack is in addition to several acts of violence which have taken place in the past two months in and around Jerusalem and Tel Aviv. Each of these attacks occurred at a soft target. We have no information that any of the American victims were targeted because they were American citizens.

Today’s incident differs from recent attacks, potentially demonstrating low-level coordination to attack a pre-identified soft target as opposed to an opportunistic random act of violence. While we cannot predict where and when attacks may take place, we have consistently seen a cycle of violence in East Jerusalem neighborhoods following incidents like the one today.

In addition, U.S. government officials are restricted from using the Jerusalem Light Rail north of French Hill through December 23 at 6:00 p.m.

The current dynamic security environment underscores the importance of situational awareness, especially in crowded public places that may have minimal overt police presence. We advise that you monitor local media outlets for current information.

What is a Soft Target?

The State Department considers soft targets to include places where people live, congregate, shop or visit, including hotels, clubs, restaurants, shopping centers, identifiable Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events, often with little or no security presence.

Making Yourself a Harder Target

We advise taking steps to make yourself a “harder target” and raise your situational awareness when frequenting these areas; make your routes, arrival and departure times unpredictable, ensure a colleague, friend or family member is aware of your travel, and report suspicious activity to local authorities.

We strongly recommend that U.S. citizens traveling to or residing in Israel, Jerusalem, the West Bank, and Gaza enroll in the Department of State’s Smart Traveler Enrollment Program (STEP) . STEP enrollment gives you the latest security updates, and makes it easier for the U.S. embassy or nearest U.S. consulate to contact you in an emergency. If you don’t have Internet access, enroll directly with the nearest U.S. embassy or consulate.

Regularly monitor the State Department’s website, where you can find current Travel Warnings (including the Travel Warning for Israel, the West Bank, and Gaza), Travel Alerts, and the Worldwide Caution.  Read the Country Specific Information for Israel, the West Bank, and Gaza. For additional information, refer to “Traveler’s Checklist” on the State Department’s website.
***

Israeli Prime Minister, Benjamin Netanyahu has vowed revenge on the Palestinians responsible for the attack on the Jerusalem synagogue, pledging to demolish the homes of the men involved.

Speaking just hours after the attack, which claimed the lives of five people, he said he would ‘settle the score with every terrorist’, claiming those who wanted to force the Israeli people out of Jerusalem would not succeed.

He said: ‘We are in a battle over Jerusalem, our eternal capital.’

Addressing the nation, Mr Nethanyahu said: ‘We are at the height of an ongoing terror attack focused on Jerusalem.

‘This evening, I ordered the destruction of the houses of the Palestinians who carried out this massacre and to speed up the demolition of those who carried out previous attack.’

He said: ‘Citizens of Israel, I call on you to demonstrate great vigilance and to respect the law because the state will bring to justice all the terrorists and those who dispatch them.

‘It is forbidden for anyone to take the law into their own hands, even if tempers are high and even if you’re burning with anger.”

He linked the attack to inflammatory statements about the flashpoint Al-Aqsa mosque compound made by the Palestinian Authority, the Islamist Hamas movement and Israel’s Islamic Movement, a religious advocacy group.

Known to Jews as the Temple Mount, the mosque compound is sacred to both faiths and one of the most sensitive sites in the Middle East.

‘Hamas, the Islamic Movement and the Palestinian Authority are spreading no end of libels… against the state of Israel.

‘They say that the Jews are defiling the Temple Mount, they say that we are planning to destroy the holy places there, that we are intending to change the prayer rites there.

‘It’s all a lie. And these lies have already cost a very high price..

‘Today more victims were added to their number due to this crazy blood libel.’

Read more here as the photo essay is chilling.

Al Not So Sharpton

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Look skyward, pigs fly.

1. This comes from the very liberal New York Times.

2. He has unfettered access to the White House.

3. He had a say in the nomination of Loretta Lynch replacing AG Eric Holder.

4. Holder and Jarrett are huge supporters of his organization.

5. If was anyone else, they would be in jail already.

6. He was an FBI snitch on the mob.

Questions About Sharpton’s Finances Accompany His Rise in Influence

The Rev. Al Sharpton, who came to prominence as an imposing figure in a track suit, shouting indignantly at the powerful, stood quietly on a stage last month at the Four Seasons restaurant, his now slender frame wrapped in a finely tailored suit, as men in power lined up to exclaim their admiration for him.

Mayor Bill de Blasio and Gov. Andrew M. Cuomo hailed him as a civil rights icon. President Obama sent an aide to read a message commending Mr. Sharpton’s “dedication to the righteous cause of perfecting our union.” Major corporations sponsored the lavish affair.

It was billed as a “party for a cause,” in honor of Mr. Sharpton’s 60th birthday. But more than a birthday celebration, or a fund-raiser for his nonprofit advocacy group National Action Network, the event in Manhattan seemed to mark the completion of Mr. Sharpton’s decades of transition from consummate outsider to improbable insider.

“I’ve been able to reach from the streets to the suites,” he said that night.

President Obama and Mr. Sharpton, the founder and president of the National Action Network, at the organization’s national convention in April.

Pool photo by Julia Xanthos

Indeed, Mr. Sharpton’s influence and visibility have reached new heights this year, fueled by his close relationships with the mayor and the president.

Obscured in his ascent, however, has been his troubling financial past, which continues to shadow his present.

Mr. Sharpton has regularly sidestepped the sorts of obligations most people see as inevitable, like taxes, rent and other bills. Records reviewed by The New York Times show more than $4.5 million in current state and federal tax liens against him and his for-profit businesses. And though he said in recent interviews that he was paying both down, his balance with the state, at least, has actually grown in recent years. His National Action Network appears to have been sustained for years by not paying federal payroll taxes on its employees.

With the tax liability outstanding, Mr. Sharpton traveled first class and collected a sizable salary, the kind of practice by nonprofit groups that the United States Treasury’s inspector general for tax administration recently characterized as “abusive,” or “potentially criminal” if the failure to turn over or collect taxes is willful.

Mr. Sharpton and the National Action Network have repeatedly failed to pay travel agencies, hotels and landlords. He has leaned on the generosity of friends and sometimes even the organization, intermingling its finances with his own to cover his daughters’ private school tuition.

He has been in the news as much as ever this year, becoming a prominent advocate on behalf of the families of Eric Garner, a Staten Island man who died in police custody, and Michael Brown, the unarmed black teenager who was killed by a white police officer in Ferguson, Mo. He also has a daily platform through his show on MSNBC.

Behind the scenes, he has consulted with the mayor and the president on matters of race and civil rights and even the occasional high-level appointment. He was among a small group at the White House when Mr. Obama announced his nomination of Loretta E. Lynch, the United States attorney for the Eastern District of New York, to become the next attorney general.

Mr. Sharpton’s newly found insider status represents a potential financial boon for him, furnishing him with new credibility and a surge in donations. His politician-heavy birthday party, at one of New York City’s most expensive restaurants, was billed as a fund-raiser to help his organization. Mr. Obama also spoke at the organization’s convention in April, its primary fund-raising event.

But the recent troubles of Rachel Noerdlinger, Mr. Sharpton’s closest aide for many years and more recently a top official in the de Blasio administration, served as a reminder of Mr. Sharpton’s fraught history and how easily it can spill over into the corridors of power in which he now travels.

Mayor Bill de Blasio; the first lady, Chirlane McCray; Rachel Noerdlinger; and Mr. Sharpton at his National Action Network House of Justice in Harlem on Jan. 20 for the announcement of Ms.  Noerdlinger’s appointment as Ms. McCray’s chief of staff. Rob Bennett/Office of the Mayor

Ms. Noerdlinger took a leave of absence from her post on Monday, after the arrest of her teenage son on trespassing charges. The decision capped weeks of scrutiny after news accounts revealed that she had failed to disclose a live-in boyfriend with an extensive criminal record on a background questionnaire when she became the top adviser to Mr. de Blasio’s wife, Chirlane McCray. The omission was unrelated to Mr. Sharpton, but it is the kind of paperwork oversight that has been a trademark of his nonprofit, where Ms. Noerdlinger built her career.

Mr. Sharpton acknowledged his financial troubles in recent telephone interviews. He said all of the debts were being paid, thanks to vastly increased revenues from donors. And he pointed out that he had lent the organization money himself, while at times not taking a salary.

“You can say I’m not a great administrator,” he said. “You can’t say that I’m not committed.”

Often Strident Language

Mr. Sharpton got his start preaching in Brooklyn churches at age 4. As a young man, he worked at the side of the soul singer James Brown, where he met a backup singer, Kathy, who would become his wife. By the 1980s, however, he was becoming increasingly involved in fiery activism on behalf of black people hurt by the police or members of other racial groups, sometimes making outlandish accusations. He accused an upstate New York prosecutor, Steven A. Pagones, of being part of a group of white men whom he said had abducted and raped the teenager Tawana Brawley, an allegation that a grand jury report showed had been fabricated.

He often used strident language that many saw as inflaming racial tensions. During rallies at the Slave Theater in Brooklyn, he characterized black people who disagreed with him as “yellow niggers” and called white people “crackers.” After a car in a prominent Hasidic rabbi’s motorcade jumped a curb in the Crown Heights section of Brooklyn and killed a 7-year-old black boy in 1991, Mr. Sharpton referred to the neighborhood’s Hasidic Jews as “diamond merchants.” In 1995, he referred to a Harlem businessman who wanted to expand his store into a space that had been occupied by black-owned business as a “white interloper.”

Problems keeping his personal and professional affairs in order have threatened Mr. Sharpton’s rise from the streets for decades.

In 1990, he was acquitted of felony charges that he stole $250,000 from his youth group. Then in 1993 he pleaded guilty to a misdemeanor for failing to file a state income tax return. Later, the authorities discovered that one of Mr. Sharpton’s for-profit companies, Raw Talent, which he used as a repository for money from speaking engagements, was also not paying taxes, a failure that continued for years.

In 1998, Mr. Sharpton lost a defamation suit brought by Mr. Pagones and was ordered to pay a judgment of $65,000. He said he did not have enough money to pay all at once, and after years of a slow trickle of money from wage garnishments, Mr. Sharpton was forced to testify under oath about his finances.

Mr. Sharpton helped lead a march from Far Rockaway to Broad Channel, Queens, in 1998 to protest a racially offensive float at a Labor Day parade. Edward Keating/The New York Times

He said he had no assets, save for a watch and a ring. Everything else, including some of his suits, was owned by a for-profit business, Revals Communications, he said. He testified that he put nearly all of his $73,000 in take-home pay from the National Action Network into Revals, which in turn paid many of his expenses, including his daughters’ private school tuition and some of the rent on his house. Even though state law prohibits nonprofits from making loans to officers, Mr. Sharpton said National Action Network had also once lent him money to cover his daughters’ tuition.

During the deposition, Mr. Sharpton coyly suggested he was not really sure who owned the Brooklyn house where he lived with his wife and two daughters.

“Well, I haven’t checked the deed,” he said.

In fact, Mr. Sharpton knew his landlord, Bishop E. Bernard Jordan, quite well.

Mr. Sharpton had performed the wedding ceremony of Mr. Jordan’s daughter at Zoe Ministries, the Upper West Side church where Mr. Jordan is the pastor. Mr. Jordan, who makes millions of dollars a year offering “prophecies” that predict the futures of his followers, and his wife, Debra, had been among only three couples to give the maximum allowable amount to Mr. Sharpton’s 1997 mayoral campaign, records show.

It also appears from property records that Mr. Sharpton got a deal on the six-bedroom house, which he said at the time he wanted in order to dispel questions of his residency in the city before starting his mayoral campaign. He testified that he paid $1,500 a month. He moved there from a two-bedroom apartment in Englewood, N.J., where years earlier he had been paying the same amount, according to court records.

But he still insisted he could not pay off the Pagones judgment. In 2001, friends paid it for him.

With the National Action Network’s finances always tenuous, that year it quietly paid $70,000 toward the judgment against one of Mr. Sharpton’s co-defendants in the case, Alton H. Maddox Jr., a lawyer who was suspended for refusing to cooperate with a grievance committee investigating his conduct in the Brawley case. Mr. Sharpton acknowledged the payment in an interview last week, saying the nonprofit’s board had supported the idea that Ms. Brawley deserved to be represented. Tax lawyers told The Times that because the payment benefited just one person, it could have led the Internal Revenue Service to revoke the group’s nonprofit status.

A Move Into the Mainstream

The house at 1902 Ditmas Avenue that Mr. Sharpton rented from E. Bernard Johnson in the 1990s.

Chester Higgins Jr./The New York Times

Even with his recurring legal problems, Mr. Sharpton was by then already evolving into more of a mainstream figure. He had expressed regret for some of his past incendiary comments and surprised many with his performances in the 1992 and 1994 United States Senate races and his 1997 mayoral campaign. Mr. Sharpton received national exposure with his adroit performance in the debates among the Democratic candidates for president in the 2004 race.

But the messiness of his financial affairs continued to lurk in the background.

With Mr. Sharpton focused on the 2004 presidential race, National Action Network’s finances were reaching crisis levels, tax documents and other public records show. The group’s revenues totaled just over $1 million in 2004, about half of what they had been two years earlier. Nevertheless, it picked up expenses from Mr. Sharpton’s presidential bid: $181,115 in consulting and other costs that should have been charged to his campaign, the Federal Election Commission later found. The group also faced court judgments for several hundred thousand dollars in unpaid office rent and hotel bills.

To stay afloat, the nonprofit became reliant on money that was supposed to go to payroll taxes, according to its financial statements. The amount National Action Network underpaid the federal government in taxes went from about $900,000 in 2003 to almost $1.9 million by 2006, records show. Mr. Sharpton, making more money from a new radio contract, tried to help by forgoing a salary from 2006 through 2008 and giving the organization a $200,000 no-interest loan.

In financial statements for 2007 and 2008, the group’s accountant noted that the organization’s “existence has been dependent upon” loans from Mr. Sharpton and “the nonpayment of payroll tax obligations.”

“These circumstances create substantial doubt about the organization’s ability to continue as a going concern,” the accountant wrote.

In 2009, when the group still owed $1.1 million in overdue payroll taxes, Mr. Sharpton began collecting a salary of $250,000 from National Action Network. The recent Treasury report that called that sort of practice abusive also said only 1,200 organizations in the nation owed more than $100,000 in unpaid payroll taxes, which would put Mr. Sharpton’s group among the most delinquent nonprofit organizations in the nation.

Mr. Sharpton denied in a recent interview that the payroll tax shortfall was intentional. Contradicting the statements by the group’s accountants that this was how the organization was surviving, he said the underpayment stemmed from disagreements over how to classify certain workers, after the I.R.S. began investigating the group in late 2007. The agency demanded that some people who were working as independent contractors be treated as employees, he said, so the organization needed to retroactively turn over their payroll taxes.

“It cost us a lot to go through the investigation,” Mr. Sharpton said. “If we didn’t have the legal fees, we could have paid all the taxes.”

Play Video|1:29

At a protest rally on Staten Island in August, a besuited and slimmed-down Rev. Al Sharpton looked back over his career in political activism, spanning more than a quarter of a century.

Video by Stephen Farrell on November 18, 2014.

Sued by His Landlord

On the personal front, Mr. Sharpton separated from his wife, Kathy, in 2004 and moved to an apartment in Manhattan. She stayed in the Brooklyn house owned by the Jordans. Once again, even though the landlord was a friend, problems arose paying the rent.

In 2006, the Jordans sued the Sharptons for $56,000 in Brooklyn Housing Court. They did so again in 2007 for $42,000. The outcome of the suits is not clear. Mr. Jordan and his lawyer did not return calls for comment.

There were apparently no hard feelings. The two men have helped each other in numerous public appearances and explored a partnership in a multilevel marketing company.

Today, Mr. Sharpton still faces personal federal tax liens of more than $3 million, and state tax liens of $777,657, according to records. Raw Talent and Revals Communications owe another $717,329 on state and federal tax liens.

Mr. Sharpton said the federal liens resulted from a demand by the I.R.S. that he pay taxes on earnings from speaking engagements that he had turned over to National Action Network. He said he was up to date on payment plans for both the federal and state liens, so, he said, the outstanding balance was much lower than records showed.

But according to state officials, his balance on the state liens is actually $220,000 greater now than when they were first filed during the years 2008 through 2010. A spokesman for the State Department of Taxation and Finance said state law did not allow him to provide any further details.

An I.R.S. spokesman said federal law prohibited the agency from providing any information about individual taxpayers.

National Action Network’s revenue has increased sharply, to more than $4 million in both 2011 and 2012, the year of the group’s most recent tax filing.

Much of that revenue appears to be from large corporate sponsors. A person who handled solicitations at a company that has supported the group said National Action Network often requested $50,000 or $100,000 to sponsor events.

Mr. Sharpton said his birthday party grossed about $1 million, enough that he expected to be able to clear up the organization’s tax debts, removing a cloud that has long hung over the group and himself.

“I think it shows we were able to continue to fund-raise, despite it being challenging,” he said. “We were able to turn it around.”

Google: Hacking Servers in Taiwan

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Thousands of U.S. companies and countless government agencies get hacked several times a day. This is not a new phenomenon at all and the counter-measures against both China and Russia remain unfinished. The People’s Liberation Army is a wing of the Chinese government.

Politics trumps technology security, while the National Security Council, the NSA and the State Department never use proven evidence of criminal activity against the United States with Russian or Chinese leaders, they merely talk around the issue.

Cyber-War

Many tech companies in the U.S. have experienced hacking and intrusions of sensitive data of their respective systems. Finally the heads of these corporations reached out to top U.S. government officials demanding actions and protections. The State Department pushed back due to global diplomacy and the NSA was brought to collaborate with corporations but to date, no remedies have been forthcoming.

Below is a long but very important read that puts the whole international hacking, threats and failed diplomatic objectives in perspective.

Google’s secret NSA alliance: The terrifying deals between Silicon Valley and the security state

Inside the high-level, complicated deals — and the rise of a virtually unchecked surveillance power

In mid-December 2009, engineers at Google’s headquarters in Mountain View, California, began to suspect that hackers in China had obtained access to private Gmail accounts, including those used by Chinese human rights activists opposed to the government in Beijing.

Like a lot of large, well-known Internet companies, Google and its users were frequently targeted by cyber spies and criminals. But when the engineers looked more closely, they discovered that this was no ordinary hacking campaign.

In what Google would later describe as “a highly sophisticated and targeted attack on our corporate infrastructure originating from China,” the thieves were able to get access to the password system that allowed Google’s users to sign in to many Google applications at once. This was some of the company’s most important intellectual property, considered among the “crown jewels” of its source code by its engineers. Google wanted concrete evidence of the break-in that it could share with U.S. law enforcement and intelligence authorities. So they traced the intrusion back to what they believed was its source — a server in Taiwan where data was sent after it was siphoned off Google’s systems, and that was presumably under the control of hackers in mainland China.

“Google broke in to the server,” says a former senior intelligence official who’s familiar with the company’s response. The decision wasn’t without legal risk, according to the official. Was this a case of hacking back? Just as there’s no law against a homeowner following a robber back to where he lives, Google didn’t violate any laws by tracing the source of the intrusion into its systems. It’s still unclear how the company’s investigators gained access to the server, but once inside, if they had removed or deleted data, that would cross a legal line. But Google didn’t destroy what it found. In fact, the company did something unexpected and unprecedented — it shared the information.

Google uncovered evidence of one of the most extensive and far-reaching campaigns of cyber espionage in U.S. history. Evidence suggested that Chinese hackers had penetrated the systems of nearly three dozen other companies, including technology mainstays such as Symantec, Yahoo, and Adobe, the defense contractor Northrop Grumman, and the equipment maker Juniper Networks. The breadth of the campaign made it hard to discern a single motive. Was this industrial espionage? Spying on human rights activists? Was China trying to gain espionage footholds in key sectors of the U.S. economy or, worse, implant malware in equipment used to regulate critical infrastructure?

The only things Google seemed certain of was that the campaign was massive and persistent, and that China was behind it. And not just individual hackers, but the Chinese government, which had the means and the motive to launch such a broad assault.

Google shared what it found with the other targeted companies, as well as U.S. law enforcement and intelligence agencies. For the past four years, corporate executives had been quietly pressing government officials to go public with information about Chinese spying, to shame the country into stopping its campaign. But for President Obama or Secretary of State Hillary Clinton to give a speech pointing the finger at China, they needed indisputable evidence that attributed the attacks to sources in China. And looking at what Google had provided it, government analysts were not sure they had it. American officials decided the relationship between the two economic superpowers was too fragile and the risk of conflict too high to go public with what Google knew.

Google disagreed.

Deputy Secretary of State James Steinberg was at a cocktail party in Washington when an aide delivered an urgent message: Google was going to issue a public statement about the Chinese spying campaign. Steinberg, the second-highest-ranking official in U.S. foreign policy, immediately grasped the significance of the company’s decision. Up to that moment, American corporations had been unwilling to publicly accuse the Chinese of spying on their networks or stealing their intellectual property. The companies feared losing the confidence of investors and customers, inviting other hackers to target their obviously weak defenses, and igniting the fury of Chinese government officials, who could easily revoke access to one of the biggest and fastest-growing markets for U.S. goods and services. For any company to come out against China would be momentous. But for Google, the most influential company of the Internet age, it was historic.

The next day, January 12, 2010, Google’s chief legal officer, David Drummond, posted a lengthy statement to the company’s blog, accusing hackers in China of attacking Google’s infrastructure and criticizing the government for censoring Internet content and suppressing human rights activists. “We have taken the unusual step of sharing information about these attacks with a broad audience not just because of the security and human rights implications of what we have unearthed, but also because this information goes to the heart of a much bigger global debate about freedom of speech,” said Drummond.

Back at the State Department, officials saw a rare opportunity to put pressure on China for spying. That night Hillary Clinton issued her own statement. “We have been briefed by Google on these allegations, which raise very serious concerns and questions. We look to the Chinese government for an explanation,” she said. “The ability to operate with confidence in cyberspace is critical in a modern society and economy.”

As diplomatic maneuvers go, this was pivotal. Google had just given the Obama administration an opening to accuse China of espionage without having to make the case itself. Officials could simply point to what Google had discovered as a result of its own investigation.

“It gave us an opportunity to discuss the issues without having to rely on classified sources or sensitive methods” of intelligence gathering, Steinberg says. The administration had had little warning about Google’s decision, and it was at odds with some officials’ reluctance to take the espionage debate public. But now that it was, no one complained.

“It was their decision. I certainly had no objection,” Steinberg says.

The Obama administration began to take a harsher tone with China, starting with a major address Clinton gave about her Internet Freedom initiative nine days later. She called on China to stop censoring Internet searches and blocking access to websites that printed criticism about the country’s leaders. Clinton likened such virtual barriers to the Berlin Wall.

For its part, Google said it would stop filtering search results for words and subjects banned by government censors. And if Beijing objected, Google was prepared to pull up stakes and leave the Chinese market entirely, losing out on billions of dollars in potential revenues. That put other U.S. technology companies in the hot seat. Were they willing to put up with government interference and suppression of free speech in order to keep doing business in China?

After Google’s declaration, it was easier for other companies to admit they’d been infiltrated by hackers. After all, if it happened to Google, it could happen to anyone. Being spied on by the Chinese might even be a mark of distinction, insofar as it showed that a company was important enough to merit the close attention of a superpower. With one blog post, Google had changed the global conversation about cyber defense.

The company had also shown that it knew a lot about Chinese spies. The NSA wanted to know how much.

Google had also alerted the NSA and the FBI that its networks were breached by hackers in China. As a law enforcement agency, the FBI could investigate the intrusion as a criminal matter. But the NSA needed Google’s permission to come in and help assess the breach.

On the day that Google’s lawyer wrote the blog post, the NSA’s general counsel began drafting a “cooperative research and development agreement,” a legal pact that was originally devised under a 1980 law to speed up the commercial development of new technologies that are of mutual interest to companies and the government. The agreement’s purpose is to build something — a device or a technique, for instance. The participating company isn’t paid, but it can rely on the government to front the research and development costs, and it can use government personnel and facilities for the research. Each side gets to keep the products of the collaboration private until they choose to disclose them. In the end, the company has the exclusive patent rights to build whatever was designed, and the government can use any information that was generated during the collaboration.

It’s not clear what the NSA and Google built after the China hack. But a spokeswoman at the agency gave hints at the time the agreement was written. “As a general matter, as part of its information-assurance mission, NSA works with a broad range of commercial partners and research associates to ensure the availability of secure tailored solutions for Department of Defense and national security systems customers,” she said. It was the phrase “tailored solutions” that was so intriguing. That implied something custom built for the agency, so that it could perform its intelligence-gathering mission. According to officials who were privy to the details of Google’s arrangements with the NSA, the company agreed to provide information about traffic on its networks in exchange for intelligence from the NSA about what it knew of foreign hackers. It was a quid pro quo, information for information.

And from the NSA’s perspective, information in exchange for protection.

The cooperative agreement and reference to a “tailored solution” strongly suggest that Google and the NSA built a device or a technique for monitoring intrusions into the company’s networks. That would give the NSA valuable information for its so-called active defense system, which uses a combination of automated sensors and algorithms to detect malware or signs of an imminent attack and take action against them. One system, called Turmoil, detects traffic that might pose a threat. Then, another automated system called Turbine decides whether to allow the traffic to pass or to block it. Turbine can also select from a number of offensive software programs and hacking techniques that a human operator can use to disable the source of the malicious traffic. He might reset the source’s Internet connection or redirect the traffic to a server under the NSA’s control. There the source can be injected with a virus or spyware, so the NSA can continue to monitor it.

For Turbine and Turmoil to work, the NSA needs information, particularly about the data flowing over a network. With its millions of customers around the world, Google is effectively a directory of people using the Internet. It has their e-mail addresses. It knows where they’re physically located when they log in. It knows what they search for on the web. The government could command the company to turn over that information, and it does as part of the NSA’s Prism program, which Google had been participating in for a year by the time it signed the cooperative agreement with the NSA. But that tool is used for investigating people whom the government suspects of terrorism or espionage.

The NSA’s cyber defense mission takes a broader view across networks for potential threats, sometimes before it knows who those threats are. Under Google’s terms of service, the company advises its users that it may share their “personal information” with outside organizations, including government agencies, in order to “detect, prevent, or otherwise address fraud, security or technical issues” and to “protect against harm to the rights, property or safety of Google.” According to people familiar with the NSA and Google’s arrangement, it does not give the government permission to read Google users’ e-mails.

They can do that under Prism. Rather, it lets the NSA evaluate Google hardware and software for vulnerabilities that hackers might exploit. Considering that the NSA is the single biggest collector of zero day vulnerabilities, that information would help make Google more secure than others that don’t get access to such prized secrets. The agreement also lets the agency analyze intrusions that have already occurred, so it can help trace them back to their source.

Google took a risk forming an alliance with the NSA. The company’s corporate motto, “Don’t be evil,” would seem at odds with the work of a covert surveillance and cyber warfare agency. But Google got useful information in return for its cooperation. Shortly after the China revelation, the government gave Sergey Brin, Google’s cofounder, a temporary security clearance that allowed him to attend a classified briefing about the campaign against his company. Government analysts had concluded that the intrusion was directed by a unit of the People’s Liberation Army. This was the most specific information Google could obtain about the source of the intrusion. It could help Google fortify its systems, block traffic from certain Internet addresses, and make a more informed decision about whether it wanted to do business in China at all. Google’s executives might pooh-pooh the NSA’s “secret sauce.” But when the company found itself under attack, it turned to Fort Meade for help.

In its blog post, Google said that more than twenty companies had been hit by the China hackers, in a campaign that was later dubbed Aurora after a file name on the attackers’ computer. A security research firm soon put the number of targets at around three dozen. Actually, the scope of Chinese spying was, and is, much larger.

Security experts in and outside of government have a name for the hackers behind campaigns such as Aurora and others targeting thousands of other companies in practically every sector of the U.S. economy: the advanced persistent threat. It’s an ominous-sounding title, and a euphemistic one. When government officials mention “APT” today, what they often mean is China, and more specifically, hackers working at the direction of Chinese military and intelligence officials or on their behalf.

The “advanced” part of the description refers in part to the hackers’ techniques, which are as effective as any the NSA employs. The Chinese cyber spies can use an infected computer’s own chat and instant-messenger applications to communicate with a command-and-control server. They can implant a piece of malware and then remotely customize it, adding new information-harvesting features. The government apparatus supporting all this espionage is also advanced, more so than the loose-knit groups of cyber vandals or activists such as Anonymous that spy on companies for political purposes, or even the sophisticated Russian criminal groups, who are more interested in stealing bank account and credit card data. China plays a longer game. Its leaders want the country to become a first-tier economic and industrial power in a single generation, and they are prepared to steal the knowledge they need to do it, U.S. officials say.

That’s where the “persistent” part comes into play. Gathering that much information, from so many sources, requires a relentless effort, and the will and financial resources to try many different kinds of intrusion techniques, including expensive zero day exploits. Once the spies find a foothold inside an organization’s networks, they don’t let go unless they’re forced out. And even then they quickly return. The “threat” such spying poses to the U.S. economy takes the form of lost revenue and strategic position. But also the risk that the Chinese military will gain hidden entry points into critical-infrastructure control systems in the United States. U.S. intelligence officials believe that the Chinese military has mapped out infrastructure control networks so that if the two nations ever went to war, the Chinese could hit American targets such as electrical grids or gas pipelines without having to launch a missile or send a fleet of bombers.

Operation Aurora was the first glimpse into the breadth of the ATP’s exploits. It was the first time that names of companies had been attached to Chinese espionage. “The scope of this is much larger than anybody has ever conveyed,” Kevin Mandia, CEO and president of Mandiant, a computer security and forensics company located outside Washington, said at the time of Operation Aurora. The APT represented hacking on a national, strategic level. “There [are] not 50 companies compromised. There are thousands of companies compromised. Actively, right now,” said Mandia, a veteran cyber investigator who began his career as a computer security officer in the air force and worked there on cybercrime cases. Mandiant was becoming a goto outfit that companies called whenever they discovered spies had penetrated their networks. Shortly after the Google breach, Mandiant disclosed the details of its investigations in a private meeting with Defense Department officials a few days before speaking publicly about it.

The APT is not one body but a collection of hacker groups that include teams working for the People’s Liberation Army, as well as so-called patriotic hackers, young, enterprising geeks who are willing to ply their trade in service of their country. Chinese universities are also stocked with computer science students who work for the military after graduation. The APT hackers put a premium on stealth and patience. They use zero days and install backdoors. They take time to identify employees in a targeted organization, and send them carefully crafted spear-phishing e-mails laden with spyware. They burrow into an organization, and they often stay there for months or years before anyone finds them, all the while siphoning off plans and designs, reading e-mails and their attachments, and keeping tabs on the comings and goings of employees — the hackers’ future targets. The Chinese spies behave, in other words, like their American counterparts.

No intelligence organization can survive if it doesn’t know its enemy. As expansive as the NSA’s network of sensors is, it’s sometimes easier to get precise intelligence about hacking campaigns from the targets themselves. That’s why the NSA partnered with Google. It’s why when Mandiant came calling with intelligence on the APT, officials listened to what the private sleuths had to say. Defending cyberspace is too big a job even for the world’s elite spy agency. Whether they like it or not, the NSA and corporations must fight this foe together.

Google’s Sergey Brin is just one of hundreds of CEOs who have been brought into the NSA’s circle of secrecy. Starting in 2008, the agency began offering executives temporary security clearances, some good for only one day, so they could sit in on classified threat briefings.

“They indoctrinate someone for a day, and show them lots of juicy intelligence about threats facing businesses in the United States,” says a telecommunications company executive who has attended several of the briefings, which are held about three times a year. The CEOs are required to sign an agreement pledging not to disclose anything they learn in the briefings. “They tell them, in so many words, if you violate this agreement, you will be tried, convicted, and spend the rest of your life in prison,” says the executive.

Why would anyone agree to such severe terms? “For one day, they get to be special and see things few others do,” says the telecom executive, who, thanks to having worked regularly on classified projects, holds high-level clearances and has been given access to some of the NSA’s most sensitive operations, including the warrantless surveillance program that began after the 9/11 attacks. “Alexander became personal friends with many CEOs” through these closed-door sessions, the executive adds. “I’ve sat through some of these and said, ‘General, you tell these guys things that could put our country in danger if they leak out.’ And he said, ‘I know. But that’s the risk we take. And if it does leak out, they know what the consequences will be.’ ”

But the NSA doesn’t have to threaten the executives to get their attention. The agency’s revelations about stolen data and hostile intrusions are frightening in their own right, and deliberately so. “We scare the bejeezus out of them,” a government official told National Public Radio in 2012. Some of those executives have stepped out of their threat briefings meeting feeling like the defense contractor CEOs who, back in the summer of 2007, left the Pentagon with “white hair.”

Unsure how to protect themselves, some CEOs will call private security companies such as Mandiant. “I personally know of one CEO for whom [a private NSA threat briefing] was a life-changing experience,” Richard Bejtlich, Mandiant’s chief security officer, told NPR. “General Alexander sat him down and told him what was going on. This particular CEO, in my opinion, should have known about [threats to his company] but did not, and now it has colored everything about the way he thinks about this problem.”

The NSA and private security companies have a symbiotic relationship. The government scares the CEOs and they run for help to experts such as Mandiant. Those companies, in turn, share what they learn during their investigations with the government, as Mandiant did after the Google breach in 2010. The NSA has also used the classified threat briefings to spur companies to strengthen their defenses.

In one 2010 session, agency officials said they’d discovered a flaw in personal computer firmware — the onboard memory and codes that tell the machine how to work — that could allow a hacker to turn the computer “into a brick,” rendering it useless. The CEOs of computer manufacturers who attended the meeting, and who were previously aware of the design flaw, ordered it fixed.

Private high-level meetings are just one way the NSA has forged alliances with corporations. Several classified programs allow companies to share the designs of their products with the agency so it can inspect them for flaws and, in some instances, install backdoors or other forms of privileged access. The types of companies that have shown the NSA their products include computer, server, and router manufacturers; makers of popular software products, including Microsoft; Internet and e-mail service providers; telecommunications companies; satellite manufacturers; antivirus and Internet security companies; and makers of encryption algorithms.

The NSA helps the companies find weaknesses in their products. But it also pays the companies not to fix some of them. Those weak spots give the agency an entry point for spying or attacking foreign governments that install the products in their intelligence agencies, their militaries, and their critical infrastructure. Microsoft, for instance, shares zero day vulnerabilities in its products with the NSA before releasing a public alert or a software patch, according to the company and U.S. officials. Cisco, one of the world’s top network equipment makers, leaves backdoors in its routers so they can be monitored by U.S. agencies, according to a cyber security professional who trains NSA employees in defensive techniques. And McAfee, the Internet security company, provides the NSA, the CIA, and the FBI with network traffic flows, analysis of malware, and information about hacking trends.

Companies that promise to disclose holes in their products only to the spy agencies are paid for their silence, say experts and officials who are familiar with the arrangements. To an extent, these openings for government surveillance are required by law. Telecommunications companies in particular must build their equipment in such a way that it can be tapped by a law enforcement agency presenting a court order, like for a wiretap. But when the NSA is gathering intelligence abroad, it is not bound by the same laws. Indeed, the surveillance it conducts via backdoors and secret flaws in hardware and software would be illegal in most of the countries where it occurs.

Of course, backdoors and unpatched flaws could also be used by hackers. In 2010 a researcher at IBM publicly revealed a flaw in a Cisco operating system that allows a hacker to use a backdoor that was supposed to be available only to law enforcement agencies. The intruder could hijack the Cisco device and use it to spy on all communications passing through it, including the content of e-mails. Leaving products vulnerable to attack, particularly ubiquitous software programs like those produced by Microsoft, puts millions of customers and their private information at risk and jeopardizes the security of electrical power facilities, public utilities, and transportation systems.

Under U.S. law, a company’s CEO is required to be notified whenever the government uses its products, services, or facilities for intelligence-gathering purposes. Some of these information-sharing arrangements are brokered by the CEOs themselves and may be reviewed only by a few lawyers. The benefits of such cooperation can be profound. John Chambers, the CEO of Cisco, became friends with George W. Bush when he was in office. In April 2006, Chambers and the president ate lunch together at the White House with Chinese president Hu Jintao, and the next day Bush gave Chambers a lift on Air Force One to San Jose, where the president joined the CEO at Cisco headquarters for a panel discussion on American business competitiveness. California governor Arnold Schwarzenegger also joined the conversation. Proximity to political power is its own reward. But preferred companies also sometimes receive early warnings from the government about threats against them.

The Homeland Security Department also conducts meetings with companies through its “cross sector working groups” initiative. These sessions are a chance for representatives from the universe of companies with which the government shares intelligence to meet with one another and hear from U.S. officials. The attendees at these meetings often have security clearances and have undergone background checks and interviews. The department has made the schedule and agendas of some of these meetings public, but it doesn’t disclose the names of companies that participated or many details about what they discussed.

Between January 2010 and October 2013, the period for which public records are available, the government held at least 168 meetings with companies just in the cross sector working group. There have been hundreds more meetings broken out by specific industry categories, such as energy, telecommunications, and transportation.

A typical meeting may include a “threat briefing” by a U.S. government official, usually from the NSA, the FBI, or the Homeland Security Department; updates on specific initiatives, such as enhancing bank website security, improving information sharing among utility companies, or countering malware; and discussion of security “tools” that have been developed by the government and industry, such as those used to detect intruders on a network. One meeting in April 2012 addressed “use cases for enabling information sharing for active cyber defense,” the NSA-pioneered process of disabling cyber threats before they can do damage. The information sharing in this case was not among government agencies but among corporations.

Most meetings have dealt with protecting industrial control systems, the Internet-connected devices that regulate electrical power equipment, nuclear reactors, banks, and other vital facilities. That’s the weakness in U.S. cyberspace that most worries intelligence officials. It was the subject that so animated George W. Bush in 2007 and that Barack Obama addressed publicly two years later. The declassified agendas for these meetings offer a glimpse at what companies and the government are building for domestic cyber defense.

On September 23, 2013, the Cross Sector Enduring Security Framework Operations Working Group discussed an update to an initiative described as “Connect Tier 1 and USG Operations Center.” “Tier 1” usually refers to a major Internet service provider or network operator. Some of the best-known Tier 1 companies in the United States are AT&T, Verizon, and CenturyLink. “USG” refers to the U.S. government. The initiative likely refers to a physical connection running from an NSA facility to those companies, as part of an expansion of the DIB pilot program. The expansion was authorized by a presidential executive order in February 2013 aimed at increasing security of critical-infrastructure sites around the country. The government, mainly through the NSA, gives threat intelligence to two Internet service providers, AT&T and CenturyLink. They, in turn, can sell “enhanced cybersecurity services,” as the program is known, to companies that the government deems vital to national and economic security. The program is nominally run by the Homeland Security Department, but the NSA provides the intelligence and the technical expertise.

Through this exchange of intelligence, the government has created a cyber security business. AT&T and CenturyLink are in effect its private sentries, selling protection to select corporations and industries. AT&T has one of the longest histories of any company participating in government surveillance. It was among the first firms that voluntarily handed over call records of its customers to the NSA following the 9/11 attacks, so the agency could mine them for potential connections to terrorists — a program that continues to this day. Most phone calls in the United States pass through AT&T equipment at some point, regardless of which carrier initiates them. The company’s infrastructure is one of the most important and frequently tapped repositories of electronic intelligence for the NSA and U.S. law enforcement agencies.

CenturyLink, which has its headquarters in Monroe, Louisiana, has been a less familiar name in intelligence circles over the years. But in 2011 the company acquired Qwest Communications, a telecommunications firm that is well known to the NSA. Before the 9/11 attacks, NSA officials approached Qwest executives and asked for access to its high-speed fiber-optic networks, in order to monitor them for potential cyber attacks. The company rebuffed the agency’s requests because officials hadn’t obtained a court order to get access to the company’s equipment. After the terrorist attacks, NSA officials again came calling, asking Qwest to hand over its customers’ phone records without a court-approved warrant, as AT&T had done. Again, the company refused. It took another ten years and the sale of the company, but Qwest’s networks are now a part of the NSA’s extended security apparatus.

The potential customer base for government-supplied cyber intelligence, sold through corporations, is as diverse as the U.S. economy itself. To obtain the information, a company must meet the government’s definition of a critical infrastructure: “assets, systems, and networks, whether physical or virtual, so vital to the United States that their incapacitation or destruction would have a debilitating effect on security, national economic security, national public health or safety, or any combination thereof.” That may seem like a narrow definition, but the categories of critical infrastructure are numerous and vast, encompassing thousands of businesses. Officially, there are sixteen sectors: chemical; commercial facilities, to include shopping centers, sports venues, casinos, and theme parks; communications; critical manufacturing; dams; the defense industrial base; emergency services, such as first responders and search and rescue; energy; financial services; food and agriculture; government facilities; health care and public health; information technology; nuclear reactors, materials, and waste; transportation systems; and water and wastewater systems.

It’s inconceivable that every company on such a list could be considered “so vital to the United States” that its damage or loss would harm national security and public safety. And yet, in the years since the 9/11 attacks, the government has cast such a wide protective net that practically any company could claim to be a critical infrastructure. The government doesn’t disclose which companies are receiving cyber threat intelligence. And as of now the program is voluntary. But lawmakers and some intelligence officials, including Keith Alexander and others at the NSA, have pressed Congress to regulate the cyber security standards of critical-infrastructure owners and operators. If that were to happen, then the government could require that any company, from Pacific Gas and Electric to Harrah’s Hotels and Casinos, take the government’s assistance, share information about its customers with the intelligence agencies, and build its cyber defenses according to government specifications.

In a speech in 2013 the Pentagon’s chief cyber security adviser, Major General John Davis, announced that Homeland Security and the Defense Department were working together on a plan to expand the original DIB program to more sectors. They would start with energy, transportation, and oil and natural gas, “things that are critical to DOD’s mission and the nation’s economic and national security that we do not directly control,” Davis said. The general called foreign hackers’ mapping of these systems and potential attacks “an imminent threat.” The government will never be able to manage such an extensive security regime on its own. It can’t now, which is why it relies on AT&T and CenturyLink. More companies will flock to this new mission as the government expands the cyber perimeter. The potential market for cyber security services is practically limitless.

Excerpted from “@WAR: The Rise of the Military-Internet Complex” by Shane Harris. Copyright © 2014 by Shane Harris. Used by permission of Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Shane Harris is the author of The Watchers: The Rise of America’s Surveillance State, which won the New York Public Library’s Helen Bernstein Book Award for Excellence in Journalism and was named one of the best books of 2010 by the Economist. Harris won the 2010 Gerald R. Ford Prize for Distinguished Reporting on National Defense. He is currently senior writer at Foreign Policy magazine and an ASU fellow at the New America Foundation, where he researches the future of war.