CIA’s Fugitive Banker in Idaho

This is a story that makes for a great movie script but there are some that would push back especially those involved during the Reagan years and the Contra arms deal.

The newspaper article found here expands even further, naming more names.

A Nugan Hand branch in the Thai opium-producing country, for example, abutted the office of the American Drug Enforcement Administration – and even shared a receptionist with it. Important American companies in Saudi Arabia backed Nugan Hand’s aggressive sales there to American workers; big investment money was raked in, sometimes being carried away in plastic garbage bags, much of it disappearing forever. In 1979, Nugan Hand hoped to gain United Nations money to settle Indochinese refugees in the Turks and Caicos Islands, seen as ideal Caribbean transshipment points on the narcotics routes from South America.

FOUND After 35 Years: CIA’s Fugitive Banker

By Raymond Bonner, Special to ProPublica

It was one of the greatest disappearing acts of modern times.

Amid a swirl of allegations and rumors that the Nugan Hand Bank was involved in arms smuggling, drug-running, and covert operations for the CIA, the institution’s American founder vanished from Australia. Thirty-five years later, that man, Michael Jon Hand, was tracked to a small town in Idaho where he has been living under the name of Michael Jon Fuller.

Hand was found by an Australian writer, Peter Butt, whose just-released book, Merchants of Menace, discloses Hand’s whereabouts after decades of mystery.

If finding Hand, now 73, solves one mystery, it raises another. How could he have lived in the United States so long without being detected? He changed his name only slightly, from Hand to Fuller, and did not get a new Social Security number, according to Butt.

Hand’s company, G.M.I. Manufacturing, is registered with the Idaho secretary of state. The company “now manufactures tactical weapons for US Special Forces, special operations groups and hunters,’’ Butt writes. Has Hand/Fuller been brazen, foolish, or, as Butt asks, does he belong “to a protected species, most likely of the intelligence kind?”

Two years after fleeing Australia, in 1982, when the CIA was involved in a covert operation to overthrow the left-wing Sandinista government in Nicaragua, Hand was working as a military adviser in the region where the anti-Sandinista “contras” were based, according to an Australian intelligence document, which was declassified earlier this year.

The FBI did not immediately respond to a request for comment. The CIA has previously denied it had any links to Hand.

Hand had been a Green Beret in Vietnam and a CIA operative in Laos before moving to Australia, where he and Frank Nugan, a wealthy playboy, established the Nugan Hand Bank in 1973, with $80. Hand fled Australia seven years later, after Nugan was found dead inside his Mercedes-Benz, his left hand holding the barrel of a .30-caliber rifle a few inches from his head, his right hand near the trigger.

During an inquest into Nugan’s death, Hand testified that the bank was insolvent, owing investors large and small some $50 million. The inquest ruled Nugan’s death a suicide, a finding many Australians found dubious.

With depositors and law enforcement authorities in pursuit, Hand, with assistance from a former CIA officer, secured a forged Australian passport, donned a false mustache and beard, and fled Australia in June of 1980. He flew to Fiji, then on to Canada, from which he could cross into the United States without a visa.

The Sydney Morning Herald first reported on Butt’s findings on Monday. In a segment that aired Sunday night, Australia’s 60 Minutes filmed Hand/Fuller emerging from a pharmacy at a shopping mall in Idaho Falls. He has a full beard and neck brace, and was wearing sunglasses and a blue checked shirt. He refused to answer any questions or speak at all when confronted by 60 Minutes reporter Ross Coulthart.

Suspicions about the bank’s links to the CIA arose almost immediately after Nugan was found dead. His wallet contained the business card of William E. Colby, who had been director of the CIA from 1973 to 1976.

Colby was forced to resign when it was reported that the agency had been engaged in illegal spying on American citizens. He became a legal adviser to Nugan Hand, and on the back of his business card were handwritten dates when someone, presumably Colby, would be in Hong Kong and Singapore.

As reporters began digging into Nugan Hand, they found that Colby wasn’t the only individual with an intelligence or military background involved with the bank.

“Nugan Hand had enough generals, admirals, and spooks to run a small war,” Jonathan Kwitny, an investigative reporter at The Wall Street Journal, wrote in the definitive book about the bank, The Crimes of Patriots: A True Tale of Dope, Dirty Money, and the CIA.

Pentagon: Taliban is Now a U.S. Partner

Really? Tell it to those warriors who fought them in Afghanistan. Yet this is not a new standard especially as the Obama White House released 5 of their top commanders back to the ranks of the Taliban.

Shameful…

WASHINGTON: The US Department of Defence has said that it’s no longer conducting counter-terrorism operations against the Taliban in Afghanistan because it views the group as an important partner in its efforts for restoring peace in the war-ravaged country.

“What we’re not doing (is) counter-terrorism operations against the Taliban,” Pentagon spokesman Navy Captain Jeff Davis told a Wednesday evening news briefing in Washington.

“We actually view the Taliban as being an important partner in a peaceful Afghan-led reconciliation process. We are not actively targeting the Taliban,” he added.


‘No institutional presence of IS in Pak-Afghan region’


The briefing, however, focused on US efforts to defeat the Middle East-based terrorist group IS (the self-styled Islamic State) which also has some presence in the Pak-Afghan region.

Capt Davis said that some “lone wolves” in Pakistan and Afghanistan were using the IS brand to raise their stature but the group did not have an institutional presence in the region.

He said the IS had a “pretty good” command and control system in Iraq and Syria but those claiming to represent the group in Afghanistan and Pakistan did not have the command and control relationship with the main IS.

The Pentagon official said the United States was working “very extensively” with the Pakistani government in the fight against terrorists.

Capt Davis explained that while the Coalition Support Fund was aimed to enhance Pakistan’s ability to fight the Haqqani Network, it also helped develop other broader spectrum counter-terrorism capabilities.

In Afghanistan, the US ended its combat operations last year and its role there now was simply to advise and assist the Afghan forces, he said.

Capt Davis said the US also had “unilateral role” of being able to conduct counter-terrorism missions in Afghanistan primarily against Al Qaeda and its remnants.

“But IS would be fair game as well,” he added.

(CNN) Here’s a look at the Taliban, a Sunni Islamist organization operating primarily in Afghanistan and Pakistan.

Facts:
Reclusive leader Mullah Mohammed Omar led the Taliban from the mid-1990s until his death in 2013.

Mullah Akhtar Mohammad Mansour was announced in July 2015 as the new leader.

Taliban, in Pashto, is the plural of Talib, which means student.

Most members are Pashtun, the largest ethnic group in Afghanistan.

 

The exact number of Taliban forces is unknown.

The group’s aim is to impose its interpretation of Islamic law on Afghanistan and remove foreign influence from the country.

Timeline:
1979-1989 –
The Soviet Union invades and occupies Afghanistan. Afghan resistance fighters, known collectively as mujahedeen, fight back.

1989-1993 – After the Soviet Union withdraws, fighting among the mujahedeen leads to chaos.

1994 – The Taliban is formed, comprised mostly of students and led by mujahedeen veteran Mullah Omar.

November 1994 – The Taliban seizes the city of Kandahar.

September 1996 – The capital, Kabul, falls to the Taliban.

1997 – The Taliban issue an edict renaming Afghanistan the Islamic Emirate of Afghanistan. The country is only officially recognized by three countries: Pakistan, Saudi Arabia and the United Arab Emirates.

1996-2001 – The group imposes strict Islamic laws on the Afghan people. Women must wear head-to-toe coverings, are not allowed to attend school or work outside the home and are forbidden to travel alone. Television, music and non-Islamic holidays are also banned.

1997 – Mullah Omar forges a relationship with Osama bin Laden, who then moves his base of operations to Kandahar.

August 1998 – The Taliban captures Mazar-e-Sharif, gaining control of about 90% of Afghanistan.

March 2001 – The Taliban destroys two 1,500 year old Buddha figures in the town of Bamiyan, saying they are idols that violate Islam.

October-November 2001 – After massive U.S. bombardment as a part of Operation Enduring Freedom, the Taliban lose Afghanistan to U.S. and Northern Alliance forces.

December 2006 – Senior Taliban leader Mullah Akhtar Mohammad Osmani is killed in an airstrike by the U.S.

February 2007 – Mullah Manan, a senior Taliban commander, is killed in an air strike in southern Afghanistan.

May 2007 – Mullah Dadullah Lang, a senior Taliban leader, is killed in a U.S.-led coalition operation supported by NATO.

August 2007 – During a visit to Afghanistan, Iranian President Mahmoud Ahmadinejad denies his country is providing the Taliban weapons.

December 11, 2007 – Afghan troops backed by NATO recapture the provincial town of Musa Qala from Taliban control.

February 2008 – Taliban operative Mullah Bakht Mohammed is captured by Pakistani forces.

October 21, 2008 – Foreign Minister Saud al-Faisal confirms that Saudi Arabia hosted talks between Afghan officials and the Taliban in September. It is reported that no agreements were made.

April 25, 2011 – Hundreds of prisoners escape from a prison in Kandahar by crawling through a tunnel. The Taliban takes responsibility for the escape and claims that 541 prisoners escaped, while ISAF says the number is 470.

September 10, 2011 – Two Afghan civilians are killed and 77 U.S. troops are wounded during a vehicle borne improvised explosive device (SVBIED) attack at the entrance of Combat Outpost Sayed Abad, an ISAF base in Afghanistan’s Wardak province. The Taliban claims responsibility.

September 13, 2011 – Taliban militants open fire on the U.S. embassy and NATO’s International Security Assistance Force headquarters in central Kabul. Three police officers and one civilian are killed. Taliban spokesman Zabiullah Mujahid tells CNN their target is the U.S. embassy, governmental organizations and other foreign organizations.

February 27, 2012 – The Taliban claims responsibility for a suicide bombing near the front gate of the International Security Assistance Force base at Jalalabad airport in Afghanistan. At least nine people are killed and 12 wounded in the explosion. The Taliban says the bombing is in retaliation for the burning of Qurans at a U.S. base last week.

August 8, 2012 – According to senior U.S. officials, in an effort to revive peace talks with the Taliban, President Barack Obama‘s administration has proposed a prisoner swap under which it would transfer five Taliban prisoners to Qatar in exchange for a U.S. soldier held by the Taliban. The new proposal involves sending all five Taliban prisoners to Qatar first, before the Taliban release Sgt. Bowe Bergdahl, a member of the U.S. army captured in 2009. The original offer proposed transferring the Taliban prisoners in two groups, with Bergdahl being released in between.

June 18, 2013 – An official political office of the Taliban opens in Doha, Qatar’s capital city. The Taliban announces that they hope to improve relations with other countries, head toward a peaceful solution to the Afghanistan occupation and establish an independent Islamic system in the country.

September 21, 2013 – Pakistan announces that Mullah Abdul Ghani Baradar, one of the founding members of the Taliban, has been released from prison. Baradar had been captured in Karachi, Pakistan in 2010.

May 31, 2014 – The United States transfers five Guantanamo Bay detainees to Qatar in exchange for the release of Sgt. Bowe Bergdahl: Khair Ulla Said Wali Khairkhwa, Mullah Mohammad Fazl, Mullah Norullah Nori, Abdul Haq Wasiq and Mohammad Nabi Omari. It is believed Bergdahl was being held by the Taliban and al Qaeda-aligned Haqqani network in Pakistan.

September 26, 2014 – A Taliban offensive in Ghazni province, Afghanistan, leaves an estimated 100 civilians dead or wounded, including some women and children who were beheaded, according to a provincial deputy governor.

July 29, 2015 – The Afghan government says in a news release that Taliban leader Mullah Omar died in April 2013 in Pakistan, citing “credible information,” and a spokesman for Afghanistan’s intelligence service tells CNN that Omar died in a hospital in Karachi at that time.

September 28, 2015 – Taliban insurgents seize the main roundabout in the Afghan provincial capital of Kunduz, then free more than 500 inmates at the prison. This is the first time the Taliban have taken over a provincial capital since 2001.

Sanctuary City Supporter to Head Border Patrol?

Chief Fong drew criticism in June 2008 for failing to complete firearm recertification for over five years though all San Francisco police officers are required to recertify annually by department regulations. Chief Fong was quoted as saying that she was too busy to recertify. When the controversy erupted in the local media, she was recertified a week later. Additionally, in 2003 there was a police scandal in San Francisco where she was involved but skirted prosecuted.

Sources: Vocal supporter of sanctuary cities on short list to be next head of Border Patrol

FNC: A former San Francisco police chief and vocal supporter of a sanctuary cities policy is on a short list of candidates to become the new chief of the Border Patrol, according to sources.

As police chief, Heather Fong shielded illegal immigrants, including aliens who committed crimes, from deportation. In contrast, it is the job of the U.S. Border Patrol to catch and deport all illegal immigrants, including those with a criminal history.

“If they bring (a police chief) in for political purposes based on the sanctuary cities model, that politicizes the job and I think it completely undermines credibility and morale in the organization,” House Committee on Homeland Security Chairman Mike McCaul, R-Texas, told Fox News.

“If you have someone who is advocating for sanctuary cities, that’s the opposite side. They welcome these illegal immigrants to stay in the country. And so I think it’s at cross-purpose with the mission itself.”

Fong, according to Border Patrol, DHS and Capitol Hill sources, is one of several candidates to replace current chief Mike Fischer, who announced his resignation last month.

Fong is currently an assistant secretary for state and local law enforcement at the Department of Homeland Security. If tapped, she would be the first outsider to lead the Border Patrol in its 90-year history.

That decision is up to Customs and Border Protection Commissioner Gil Kerlikowske, who released a statement Monday saying, “”At this time, CBP has not begun the search for the Chief of the U.S. Border Patrol. It is completely false that any individual could be a potential candidate at this time. We are currently preparing the paperwork to begin the process.”

Rank and file agents were surprised she would be considered.

“The appointment of Heather Fong would prove that the Border Patrol is no longer the enforcement agency that Congress and the American public intended it to be,” according to a statement released by Brandon Judd, head of the agents’ union.

“Heather Fong oversaw a sanctuary city, which is directly contrary to our mission. Her appointment would be for political purposes and the trust of the men and woman of the Border Patrol in DHS and CBP leadership would be lost.”

During her five years as the chief of SFPD, Fong refused to cooperate with ICE, telling reporters in November 2008, “We do not cooperate with ICE when they go out for enforcement of immigration violations of the law.”

A few months earlier, she appeared in a public service campaign telling illegal immigrants they’re welcome in the city. In promoting San Francisco’s sanctuary city policy on TV, radio, posters and brochures in five languages, Fong said illegal immigrants had nothing to fear under her watch. “San Francisco is committed to providing safe access to public services to our communities,” she said.

In a news conference unveiling the campaign, she told reporters, “We do not work on enforcing immigration laws.”

The chief of the Border Patrol position does not require congressional approval. But given the “border security first” mentality among many on Capitol Hill, McCaul said he believes bringing in an outsider could be a hard sell.

Operation Choke Point Overlord

A disgusting program concocted by Eric Holder, former Attorney General was launched called Operation Choke Point. Several Federal agencies are part of this program where government intimidates private business where agency deem them high risk. Banks then are told to no longer do business with them.

Freedom and liberty is threatened.

The current Attorney General, Loretta Lynch is still operating the program and private businesses across the country continue to be squeezed. Across a spectrum of industries, they include ammunition and weapons companies, fireworks manufacturers and payday lenders. The FDIC and the Securities and Exchange Commission are part of the operation.

Senate Judiciary Committee Considers Nomination of Operation Choke Point Overlord

Fairfax, VA -(AmmoLand.com)- On Wednesday; Nov. 4, the Senate Judiciary Committee held a hearing on the nomination of Stuart F. Delery for the position of associate attorney general of the United States.

If confirmed, Delery would become the third-ranking official in the U.S. Department of Justice (DOJ), behind the attorney general and the deputy attorney general. Delery has been serving as “acting” associate attorney general since September 2014.

The NRA is seriously troubled by Delery’s nomination because of his supervisory role over DOJ’s scandalous Operation Choke Point (OPC). Fortunately, committee members had some tough questions for him on this point. Delery’s unconvincing denials and platitudes in response demonstrate that he does not take seriously the harm OPC, whether intentionally or not, caused to legitimate businesses. The fact that the Obama administration continues to push his nomination shows that it is more interested in rewarding ideological and political fidelity than performance in the pursuit of justice.

The functions of DOJ, however, are far too important, and the department’s powers too great, to make politics its main function.

Delery himself had key oversight responsibility for OPC. He approved the operation and its tactics. He also individually approved the investigative subpoenas that resulted in various banks ceasing business with certain industries wholesale, rather than trying to separate good actors from bad within those industries. Attached to the subpoenas that Delery approved were FDIC guidance materials that included a list of supposedly “high risk” merchants and activities. These included sales of ammunition and firearms. This same list appeared in a PowerPoint presentation given in September 2013 to bank examiners at a workshop conducted by officials from the FDIC, Department of Justice, and Office of Comptroller of the Treasury.

Whatever the true intent of OPC (and DOJ has done nothing to earn the benefit of the doubt on that score), the effect of the government’s tactics was clear: banks were interpreting DOJ’s actions as directives not to deal with certain types of legal businesses. As a result, numerous gun shops and manufacturers lost long-established banking relationships or were refused those relationships in the first place.

Questioners at Wednesday’s hearings pressed Delery hard on these facts. In his opening statement, Chairman Chuck Grassley (R-Iowa) called OPC a “stunning and dangerous” use of government power.

He noted that the operation was “sold to the public as merely an initiative to protect consumers from predatory payday lending practices.” Nevertheless, he continued, “we now know based on internal DOJ documents that from the outset it was specifically designed to prey on the banking industry`s fear of civil and criminal liability, with the stated goal of shutting down legal businesses” disfavored by the Obama Administration.

He also criticized the broad net the program cast over the banking industry: “three prosecutions out of 60 subpoenas is hardly a justification for the scattergun approach the Department undertook.”

Sen. Grassley went on to confront Delery with documentation that Delery was aware of the negative affect OPC had on lawful industries. DOJ’s response to these developments was to rationalize that if individual businesses were operating lawfully, they should be able to establish that fact with the banks. Yet the banks themselves had in many cases already made the decision that case-by-case determinations invited more scrutiny and pressure from DOJ than they were worth to the bank.

The toughest questioning, however, came from Sen. Ted Cruz (R-TX). Cruz offered a blistering summary of the program and confronted Delery with examples of actual businesses that had lost banking relationships, not because of poor performance, but because the banks had decided to sever all relationships with the firearm industry. Delery insisted that no firearm businesses had even been investigated or prosecuted.

“Choke Point,” Cruz shot back, “was all about using government power to intimidate banks to cut off their money even though they weren’t violating the laws.” “The program as it pertained to firearm businesses,” Cruz continued, “was not targeted on evidence of fraud but based on an antipathy of the Obama Justice Department to the exercise of the Second Amendment right to keep and bear arms by American citizens.”

Delery uniformly denied any intention to use DOJ’s authority to target lawful businesses. In essence, he blamed the banks themselves for misunderstanding DOJ’s intentions. Yet when bank after bank came to the same supposedly unintended conclusion, DOJ did not change course. Only when Congress itself stepped in to investigate DOJ’s tactics did the department issue public “clarifications” of its objectives to target specific fraudulent actors and not entire industries per se.

By that time, however, the damage to lawful industries had been done. Reports from the field, moreover, indicate that these industries continue to suffer the residual suspicion of financial service providers, notwithstanding DOJ’s more recent guidance on the professed scope of the program. For many banks, once burned means twice shy.

One of the more ridiculous aspects of Wednesday’s hearing was the repeated insistence of Sen. Al Franken (D-MN) that NRA “agrees” that OPC did not intend to target lawful businesses. To “substantiate” this point, he quoted from an alert we issued on May 2, 2014, as rumors were swirling about OPC in the media.

We stated at that point that we had “not substantiated … an overarching federal conspiracy to suppress lawful commerce in firearms and ammunition, or that the federal government has an official policy of using financial regulators to drive firearm or ammunition companies out of business.”

We cautioned, however, that “NRA will continue to monitor developments concerning Operation Choke Point and report on any significant activity of concern to gun owners.”

We also noted, “The Obama administration’s record … certainly provides no reason for confidence.” 

Three weeks later, we posted an update to that story in which we specifically stated, “At the time of the [May 2] report, we were unaware of a ‘smoking gun’ to tie [banks’ decisions to drop or refuse firearms industry business] back to pressure from regulatory authorities,” and noted, “That may be changing.”

That second report went on to detail additional evidence on OPC that had since come to light, as well ongoing investigative efforts.

Since that time, NRA has reported on OPC extensively, including here, here, here, here, here, here, here, herehere, here, and here.

Anyone who read these reports could not fail to understand that NRA has been gravely concerned about OPC for well over a year and that whatever OPC’s original justification might have been, DOJ was willing to accept or even embrace its negative affect on the firearm and ammunition industries. Yet Sen. Franken cherry-picked one phrase from an early report to falsely portray NRA’s current position and view of the matter. Certainly, this sort of duplicity does not serve the senator’s integrity or the cause of Delery’s nomination well.

Delery’s nomination has not yet been scheduled for a vote. Based on his unconvincing performance at the hearing, however, and continued unanswered questions about the true origins, design, and scope of OPC, NRA remains deeply troubled by this nomination. America deserves better than senior DOJ officials who are merely tools for the political views and schemes of an ideologically-driven administration.

To reward such officials for this behavior with promotions is clearly beyond the pale.

About the NRA-ILA:

Established in 1975, the Institute for Legislative Action (ILA) is the “lobbying” arm of the National Rifle Association of America. ILA is responsible for preserving the right of all law-abiding individuals in the legislative, political, and legal arenas, to purchase, possess and use firearms for legitimate purposes as guaranteed by the Second Amendment to the U.S. Constitution.

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The Billion Dollar Fleece of Taxpayers at DHS

There are defined dollars assigned to projects, when there is no enough money or the timeline for completion is missed, who says stop and inspects why? What have members of Congress been told, if anything? Who spends a billion dollars with no results? Sure, this Federal government. The same playbook applied to Obamacare and countless other government operations. Where is the outrage and will this too head to the House Oversight and Government Reform Committee for investigation?

It should be noted that the Ellis Island did this successfully as did Ancestry.com.

A decade into a project to digitize U.S. immigration forms, just 1 is online

WaPo: Heaving under mountains of paperwork, the government has spent more than $1 billion trying to replace its antiquated approach to managing immigration with a system of digitized records, online applications and a full suite of nearly 100 electronic forms.

A decade in, all that officials have to show for the effort is a single form that’s now available for online applications and a single type of fee that immigrants pay electronically. The 94 other forms can be filed only with paper.

This project, run by U.S. Citizenship and Immigration Services, was originally supposed to cost a half-billion dollars and be finished in 2013. Instead, it’s now projected to reach up to $3.1 billion and be done nearly four years from now, putting in jeopardy efforts to overhaul the nation’s immigration policies, handle immigrants already seeking citizenship and detect national security threats, according to documents and interviews with former and current federal officials.

From the start, the initiative was mismanaged, the records and interviews show. Agency officials did not complete the basic plans for the computer system until nearly three years after the initial $500 million contract had been awarded to IBM, and the approach to adopting the technology was outdated before work on it began.

By 2012, officials at the Department of Homeland Security, which includes USCIS, were aware that the project was riddled with hundreds of critical software and other defects. But the agency nonetheless began to roll it out, in part because of pressure from Obama administration officials who considered it vital for their plans to overhaul the nation’s immigration policies, according to the internal documents and interviews.

Only three of the agency’s scores of immigration forms have been digitized — and two of these were taken offline after they debuted because nearly all of the software and hardware from the original system had to be junked.

The sole form now available for electronic filing is an application for renewing or replacing a lost “green card” — the document given to legal permanent residents. By putting this application online, the agency aimed to bypass the highly inefficient system in which millions of paper applications are processed and shuttled among offices. But government documents show that scores of immigrants who applied online waited up to a year or never received their new cards, disrupting their plans to work, attend school and travel.

“You’re going on 11 years into this project, they only have one form, and we’re still a paper-based agency,’’ said Kenneth Palinkas, former president of the union that represents employees at the immigration agency. “It’s a huge albatross around our necks.’’

DHS officials acknowledge the setbacks but say the government is well on the way to automating the immigration service, which processes about 8 million applications a year. The department has scrapped the earlier technology and development method and is now adopting a new approach relying in part on cloud computing.

“In 2012, we made some hard decisions to turn the Transformation Program around using the latest industry best practices and approaches, instead of simply scratching it and starting over,’’ said Shin Inouye, a spokesman for Citizenship and Immigration Services. “We took a fresh start — a fix that required an overhaul of the development process — from contracting to development methodology to technology.’’

“Since making these changes, we have been able to develop and deploy a new system that is able to process about 1.2 million benefit requests out of USCIS’s total annual work volume,” Inouye added. “Our goals remain to improve operations, increase efficiency, and prepare for any changes to our immigration laws. Based on our recent progress, we are confident we are moving in the right direction.”

Other DHS officials emphasized that if Congress passes immigration reform in the near future, they would have an electronic system that could accommodate any significant changes, including a surge in demand from immigrants seeking legal status.

Until then, immigrants and their lawyers say they will remain hugely frustrated by the government’s archaic, error-plagued system. Processing immigration applications now often involves shipping paper documents across the country, and delays are legend. A single missing or misplaced form can set back an approval by months.

“It’s shameful that they’ve been on this for a decade and haven’t been able to get a working system in place,’’ said Vic Goel, an immigration lawyer in Reston, Va., who has followed the computerization project as a liaison for the American Immigration Lawyers Association.

Online forms get pulled

When the electronic immigration system began in May 2012, it was hailed as “a significant milestone in our agency’s history” by the USCIS Director Alejandro Mayorkas, who is now the deputy secretary of homeland security.

The first form that went live was intended for foreigners who were in the United States on certain types of visas who wanted to renew their non-immigrant status.

But only a fraction of applicants ever used that form before the agency took it offline, after officials decided to abandon the initial technology and development method and move toward a cloud-based system. Some officials inside DHS said the system should never have been launched at all because of reports that it was suffering from so many technical errors.

The second form, released in 2013, didn’t fare much better. It was designed to allow a certain group of foreigners — those wanting to immigrate to the United States and invest in a business — to apply electronically. Only about 80 people used the online form, DHS officials said. More than 10,000 others opted for old-fashioned paper. It was also pulled.

The third form, which debuted last year, is the one that would allow permanent residents to renew or replace their green cards online. In nearly 200 cases, applicants did not receive their cards or had to wait up to a year, despite multiple requests, according to a June report from the USCIS ombudsman.

The agency also hoped to make it possible for immigrants to pay fees online. There are more than 40 kinds of filing fees that immigrants pay to the government with their applications. As of now, however, only one can be paid online — by those who immigrate to the United States as lawful permanent residents. And even this limited electronic payment system has encountered major problems, such as resistance from immigrants who have trouble because they may not have computers or bank accounts.

A series of government reports has skewered the online immigration system, named ELIS after Ellis Island, even after the old technology was scrapped and officials were scrambling to move to the new cloud-based approach. These studies have found that it is slow, confusing and inefficient for immigrants and government employees alike.

A report last year from the DHS inspector general’s office said it sometimes took up to 150 clicks for employees to navigate the system’s various complex features and open documents — and that the system lacked functions as basic as a usable search engine. Internal DHS evaluations have warned of “critical engineering uncertainties” and other difficulties.

“It’s in­cred­ibly slow to use the few forms they put online,’’ said Goel, the immigration lawyer. “Most immigration lawyers have concluded the system is half-baked.’’

‘It wasn’t going to work’

Government watchdogs have repeatedly blamed the mammoth problems on poor management by DHS, and in particular by the immigration agency.

When the project began, DHS was only two years old, cobbled together after the Sept. 11 attacks from myriad other government agencies, and the department was still reeling. “There was virtually no oversight back then,’’ a former federal official said. “DHS was like the Wild West on big acquisitions.”

The Government Accountability Office has blasted the immigration service for shoddy planning, saying the agency awarded the IBM contract “prior to having a full understanding of requirements and resources needed to execute the program.” As a result, basic planning documents were incomplete or unreliable, including cost estimates and schedules. The basic requirements for the project, the report said, were not completed until 2011 — nearly three years after the IBM contract was awarded.

IBM had as many as 500 people at one time working on the project. But the company and agency clashed. Agency officials, for their part, held IBM responsible for much of the subsequent failure, documents show.

The company’s initial approach proved especially controversial. Known as “Waterfall,” this approach involved developing the system in relatively long, cascading phases, resulting in a years-long wait for a final product. Current and former federal officials acknowledged in interviews that this method of carrying out IT projects was considered outdated by 2008. “The Waterfall method has not been successful for 40 years,” said a current federal official involved in the project, who was not an authorized spokesperson and spoke on the condition of anonymity.

An IBM spokesman declined to address the criticisms, saying only that the company’s work on Transformation concluded in May.

By 2012, the system’s fundamental flaws — including frequent computer crashes and bad software code — were apparent to officials involved with the project and, according to one of them, and it was clear that “it wasn’t going to work.”

But killing the project wasn’t really an option, according to officials involved at the time. President Obama was running for reelection and was intent on pushing an ambitious immigration reform program in his second term. A workable electronic system would be vital.

“There was incredible pressure over immigration reform,” a second former official said. “No one wanted to hear the system wasn’t going to work. It was like, ‘We got some points on the board, we can go back and fix it.’”

Delays and lost papers

Immigration reform never made it out of Congress, but it could resurface after the presidential election next year. If it does, and if it involves possible citizenship or legal status for the 11.3 million immigrants who are in the country illegally, the policy would flood the government with millions of complicated new applications.

“Oh, God help us,’’ said Harry Hopkins, a former immigration services official who worked on the Transformation project. “If there is immigration reform, they are going to be overwhelmed.’’

The project’s failures already have daily consequences for millions of immigrants who are in the country legally. Immigration lawyers say the current system leads to lost applications, months-long delays and errors that cause further delays. Immigrants miss deadlines for benefits, meaning they lose everything from jobs and mortgages to travel opportunities.

Luke Bellocchi, an immigration lawyer and former deputy ombudsman at Citizenship and Immigration Services, said he has handled at least 100 cases of lost applications in the past few years, mostly for green cards.

“No one knows where these applications are,” he said. “It’s an absolute nightmare.’’

Another concern is national security. DHS officials said they are confident that the current paper-based system is not putting the nation at risk. But others, like Palma Yanni, a D.C. immigration lawyer and past president of the American Immigration Lawyers Association, are dubious.

“If there are some bad apples in there who should not get a green card, who are terrorists who want to do us harm, how on earth are they going to find these people if they’re sending mountains of paper immigration files all over the United States?’’ Yanni asked.