Exposing Bush's historic abuse of power

The Justice Department officials who objected to the legal basis for the surveillance program -- former Deputy Attorney General James B. Comey and Jack Goldsmith, the former head of the Office of Legal Counsel -- testified before Congress last year about the 2004 showdown with the White House. Although they refused to discuss the highly classified details behind their concerns, the New York Times later reported that they were objecting to a program that "involved computer searches through massive electronic databases" containing "records of the phone calls and e-mail messages of millions of Americans."

According to William Hamilton, a former NSA intelligence officer who left the agency in the 1970s, that description sounded a lot like Main Core, which he first heard about in detail in 1992. Hamilton, who is the president of Inslaw Inc., a computer services firm with many clients in government and the private sector, says there are strong indications that the Bush administration's domestic surveillance operations use Main Core.

Hamilton's company Inslaw is widely respected in the law enforcement community for creating a program called the Prosecutors' Management Information System, or PROMIS. It keeps track of criminal investigations through a powerful search engine that can quickly access all stored data components of a case, from the name of the initial investigators to the telephone numbers of key suspects. PROMIS, also widely used in the insurance industry, can also sort through other databases fast, with results showing up almost instantly. "It operates just like Google," Hamilton told me in an interview in his Washington office in May.

Since the late 1980s, Inslaw has been involved in a legal dispute over its claim that Justice Department officials in the Reagan administration appropriated the PROMIS software. Hamilton claims that Reagan officials gave PROMIS to the NSA and the CIA, which then adapted the software -- and its outstanding ability to search other databases -- to manage intelligence operations and track financial transactions. Over the years, Hamilton has employed prominent lawyers to pursue the case, including Elliot Richardson, the former attorney general and secretary of defense who died in 1999, and C. Boyden Gray, the former White House counsel to President George H.W. Bush. The dispute has never been settled. But based on the long-running case, Hamilton says he believes U.S. intelligence uses PROMIS as the primary software for searching the Main Core database.

Hamilton was first told about the connection between PROMIS and Main Core in the spring of 1992 by a U.S. intelligence official, and again in 1995 by a former NSA official. In July 2001, Hamilton says, he discussed his case with retired Adm. Dan Murphy, a former military advisor to Elliot Richardson who later served under President George H.W. Bush as deputy director of the CIA. Murphy, who died shortly after his meeting with Hamilton, did not specifically mention Main Core. But he informed Hamilton that the NSA's use of PROMIS involved something "so seriously wrong that money alone cannot cure the problem," Hamilton told me. He added, "I believe in retrospect that Murphy was alluding to Main Core." Hamilton also provided copies of letters that Richardson and Gray sent to U.S. intelligence officials and the Justice Department on Inslaw's behalf alleging that the NSA and the CIA had appropriated PROMIS for intelligence use.

Hamilton says James B. Comey's congressional testimony in May 2007, in which he described a hospitalized John Ashcroft's dramatic standoff with senior Bush officials Alberto Gonzales and Andrew Card, was another illuminating moment. "It was then that we [at Inslaw] started hearing again about the Main Core derivative of PROMIS for spying on Americans," he told me.

Through a former senior Justice Department official with more than 25 years of government experience, Salon has learned of a high-level former national security official who reportedly has firsthand knowledge of the U.S. government's use of Main Core. The official worked as a senior intelligence analyst for a large domestic law enforcement agency inside the Bush White House. He would not agree to an interview. But according to the former Justice Department official, the former intelligence analyst told her that while stationed at the White House after the 9/11 attacks, one day he accidentally walked into a restricted room and came across a computer system that was logged on to what he recognized to be the Main Core database. When she mentioned the specific name of the top-secret system during their conversation, she recalled, "he turned white as a sheet."

An article in Radar magazine in May, citing three unnamed former government officials, reported that "8 million Americans are now listed in Main Core as potentially suspect" and, in the event of a national emergency, "could be subject to everything from heightened surveillance and tracking to direct questioning and even detention."

The alleged use of Main Core by the Bush administration for surveillance, if confirmed to be true, would indicate a much deeper level of secretive government intrusion into Americans' lives than has been previously known. With respect to civil liberties, says the ACLU's Steinhardt, it would be "pretty frightening stuff."

The Inslaw case also points to what may be an extensive role played by the NSA in financial spying inside the United States. According to reports over the years in the U.S. and foreign press, Inslaw's PROMIS software was embedded surreptitiously in systems sold to foreign and global banks as a way to give the NSA secret "backdoor" access to the electronic flow of money around the world.

In May, I interviewed Norman Bailey, a private financial consultant with years of government intelligence experience dating from the George W. Bush administration back to the Reagan administration. According to Bailey -- who from 2006 to 2007 headed a special unit within the Office of the Director of National Intelligence focused on financial intelligence on Cuba and Venezuela -- the NSA has been using its vast powers with signals intelligence to track financial transactions around the world since the early 1980s.

From 1982 to 1984, Bailey ran a top-secret program for President Reagan's National Security Council, called "Follow the Money," that used NSA signals intelligence to track loans from Western banks to the Soviet Union and its allies. PROMIS, he told me, was "the principal software element" used by the NSA and the Treasury Department then in their electronic surveillance programs tracking financial flows to the Soviet bloc, organized crime and terrorist groups. His admission is the first public acknowledgement by a former U.S. intelligence official that the NSA used the PROMIS software.

According to Bailey, the Reagan program marked a significant shift in resources from human spying to electronic surveillance, as a way to track money flows to suspected criminals and American enemies. "That was the beginning of the whole process," he said.

After 9/11, this capability was instantly seen within the U.S. government as a critical tool in the war on terror -- and apparently was deployed by the Bush administration inside the United States, in cases involving alleged terrorist supporters. One such case was that of the Al-Haramain Islamic Foundation in Oregon, which was accused of having terrorist ties after the NSA, at the request of the Treasury Department, eavesdropped on the phone calls of Al-Haramain officials and their American lawyers. The charges against Al-Haramain were based primarily on secret evidence that the Bush administration refused to disclose in legal proceedings; Al-Haramain's lawyers argued in a lawsuit that was a violation of the defendants' due process rights.

According to Bailey, the NSA also likely would have used its technological capabilities to track the charity's financial activity. "The vast majority of financial movements of any significance take place electronically, so intercepts have become an extremely important element" in intelligence, he explained. "If the government suspects that a particular Muslim charitable organization is engaged in collecting funds to funnel to terrorists, the NSA would be asked to follow the money going into and out of the bank accounts of that charity." (The now-defunct Al-Haramain Foundation, although affiliated with a Saudi Arabian-based global charity, was founded and based in Ashland, Ore.)

The use of a powerful database and extensive watch lists, Bailey said, would make the NSA's job much easier. "The biggest problems with intercepts, quite frankly, is that the volumes of data, daily or even by the hour, are gigantic," he said. "Unless you have a very precise idea of what it is you're looking for, the NSA people or their counterparts [overseas] will just throw up their hands and say 'forget it.'" Regarding domestic surveillance, Bailey said there's a "whole gray area where the initiation of the transaction was in the United States and the final destination was outside, or vice versa. That's something for the lawyers to figure out."

Bailey's information on the evolution of the Reagan intelligence program appears to corroborate and clarify an article published in March in the Wall Street Journal, which reported that the NSA was conducting domestic surveillance using "an ad-hoc collection of so-called 'black programs' whose existence is undisclosed." Some of these programs began "years before the 9/11 attacks but have since been given greater reach." Among them, the article said, are a joint NSA-Treasury database on financial transactions that dates back "about 15 years" to 1993. That's not quite right, Bailey clarified: "It started in the early '80s, at least 10 years before."

Next page: A rare, telltale reference by President Bush to a top-secret emergency government program