Tag: Stewart David Nozette

  • BULLETIN: Stewart David Nozette, American Scientist Who Sold Out His Country For The Price Of A Used Car, Sentenced To 13 Years In Federal Prison

    BULLETIN: Stewart David Nozette, the Maryland man with a PhD from the Massachusetts Institute of Technology and a “Top Secret” security clearance, has been sentenced to 13 years in federal prison on charges of tax fraud and attempted espionage.

    The espionage case was brought by the FBI after Nozette — believing he’d been recruited by Israel’s Mossad to spy on the United States — accepted $10,000 left by the FBI in an undercover sting.  In effect, Nozette sold out his country for the price of a used car and the expectation that more cash would be forthcoming.

    Nozette already was under investigation for tax evasion and financial fraud against the United States when he was arrested in the 2009 sting.

    “Stewart Nozette’s greed exceeded his loyalty to our country” said U.S. Attorney Ronald C. Machen Jr. of the District of Columbia. “He wasted his talent and ruined his reputation by agreeing to sell national secrets to someone he believed was a foreign agent.  His time in prison will provide him ample opportunity to reflect on his decision to betray the United States.”

    The case was notable for reasons other than Nozette’s bid to sell out his country. Indeed, elements of the case were prosecuted by Machen’s office — an office familiar to readers of the PP Blog because it brought the AdSurfDaily Ponzi scheme case (under then-U.S. Attorney Jeffrey A. Taylor) in 2008 and supervised the return in 2011 and 2012 of more than $59 million (under Machen) to defrauded ASD investors.

    Michael K. Atkinson, the assistant U.S. Attorney who led the Nozette tax and fraud prosecutions, once was assigned to the ASD case.

    Nozette “betrayed his country and the trust that was placed in him by attempting to sell some of America’s most closely-guarded secrets for profit,” said Assistant Attorney General Lisa Monaco.

    Monaco is from the Justice Department’s National Security division. She joined Machen in making the announcement about Nozette’s sentence, along with Principal Deputy Assistant Attorney General John A. DiCicco of the Tax Division.

    Also joining in the the announcement were James W. McJunkin, assistant director in charge of the FBI’s Washington Field Office; Paul K. Martin, inspector general for the National Aeronautics and Space Administration (NASA OIG); Eric Hylton, acting special agent in charge of the Washington Field Office of the Internal Revenue Service-Criminal Investigation (IRS-CI); and John Wagner, special agent in charge of the Washington, D.C., Office of the Naval Criminal Investigative Service (NCIS).

    “Federal agents take an oath to protect our nation ‘against all enemies, foreign and domestic,” said Wagner.  “That would include ‘insider threats’ like Stewart Nozette.”

    Nozette, 54, parlayed his impressive academic credentials and MIT doctorate in planetary science into a career in which he conducted business with the U.S. government. He worked at the White House, for example, on the National Space Council through the Executive Office of the President of the United States.

    Prosecutors said he also worked as a physicist for the U.S. Department of Energy’s Lawrence Livermore National Laboratory, and also had access to the U.S. Naval Research Laboratory (NRL) in Washington, D.C., the Defense Advanced Research Projects Agency (DARPA) in Arlington, Va., and NASA’s Goddard Space Flight Center in Greenbelt, Md.

    “We are particularly proud that NASA OIG’s fraud investigation of Nozette, which began in 2006, served as the catalyst for further investigation and today’s outcome,” said Martin, NASA’s inspector general.

    The indictment did not allege that the government of Israel or anyone acting on its behalf committed any offense under U.S. laws in this case, prosecutors said.

  • EDITORIAL: The Real Meaning Of ‘Treason’

    Stewart David Nozette was arrested by the FBI yesterday for attempted espionage. Though Nozette was not formally charged with the Constitutional crime of treason — the only crime specifically described in the Constitution — the crime of espionage is viewed by the public as an act of treason against the United States because selling secrets can be viewed as a form of “levying War” against the country or giving “Aid and Comfort” to an enemy.

    Officials said Nozette accepted $11,000 in cash — with the inference more would follow — and used manila envelopes to pack up secrets. He asked for payment and delivered the secrets to, of all places, a U.S. Post Office.

    Nozette wanted his payments to be kept below $10,000 to keep the prying eyes of government away, prosecutors said. In the first two transactions, Nozette allegedly sold out his country for the price of a used car.

    Nozette thought he had been recruited by the Mossad, Israel’s spy agency. In reality, he had been targeted in an FBI sting because the government had gotten the idea he just might be willing to sell out the United States to a foreign government or entity for a fee. Prosecutors said he had left the United States in January with two computer thumb drives. Inspectors could not find the drives when he returned.

    The government of Israel was not involved in wrongdoing, authorities said.

    A thumb drive was left at the Post Office in September by Nozette, when he thought he was doing business with the Mossad, prosecutors said.

    Prosecutors from the U.S. Attorney’s office led by Acting U.S. Attorney Channing Phillips in the District of Columbia are assisting in the case, which will be heard in U.S. District Court for the District of Columbia. The same court is the venue from which the the civil-forfeiture case against tens of millions of dollars seized from AdSurfDaily Inc. in an international Ponzi scheme probe is being prosecuted.

    The Nozette case demonstrates that grave matters of national security come to the attention of prosecutors in Phillips’ office and judges in the district. Sometimes the matters include elements of international intrigue, as the Nozette case again demonstrates.

    Judge Rosemary Collyer, the judge in the ASD case, presided over an extremely complex case involving former U.S. Secretary of State Henry Kissinger, once National Security Adviser to President Richard M. Nixon. The case dated back to the early 1970s and involved the complicated issue of “sovereign immunity.”

    How complex were the legal issues in the case? Collyer’s own words provide a glimpse:

    “This lawsuit challenges covert actions allegedly directed by high-level United States officials in connection with an attempted coup in Chile in 1970 designed to prevent the election of Dr. Salvadore Allende as Chile’s first Socialist President,” Collyer wrote in 2004.

    “General René Schneider, then Commander-in-Chief of the Chilean Army, opposed military intervention in the electoral process,” she continued. “As a result, the United States allegedly plotted with Chilean nationals to neutralize him. General Schneider was shot during a failed kidnap[p]ing attempt on October 22, 1970, and died from his wounds a few days later. Two of General Schneider’s children and his Personal Representative, suing on behalf of his estate, seek to hold the United States and Henry A. Kissinger, former Assistant for National Security Affairs to President Richard M. Nixon, responsible for the General’s death.”

    In a ruling dismissing the case, Collyer said Kissinger could not be held responsible for the death, even if the assertions against Kissinger and the U.S. government were true.

    “The plaintiffs’ claims present a non-justiciable political question on foreign policy
    decisions undertaken by the Executive Branch in 1970,” Collyer said. “[T]he Court finds that Dr. Kissinger was properly certified as acting within the scope of his employment vis-a-vis the relevant events. The United States will be substituted for him as the sole defendant. With this substitution, the amended complaint is barred by the doctrine of sovereign immunity.”

    Whether or not one agrees with the ruling, one must agree that Collyer was tasked with the responsibility to reduce extremely complex issues of both law and U.S. foreign policy to their essence — and view them in the framework of Constitutionality. No critic interested in fair or logical debate would dismiss her as an intellectual lightweight.

    Words Mean Things

    The reason for this column is to point out a couple of things: First, that the responsibility of federal prosecutors is to advocate in the interests of the people of the United States. Some of the same people criticizing the ASD prosecutors in excessive fashion — and even extreme fashion — perhaps will be less vocal or not vocal at all in their criticism of Phillips’ office for its role in the prosecution of Nozette.

    It is, after all, an espionage prosecution, and the American public does not take kindly to acts that speak of treason, whether it’s the treason spelled out in the Constitution or the treason inferred from the act of selling government secrets for a fee.

    And this brings us to the use of extreme language by some supporters of ASD — language directed at both the prosecution and Judge Collyer.

    Collyer, a sitting federal judge appointed by a President of the United States and confirmed by the U.S. Senate — and a federal judge who presides over issues of national security and the affairs of state, as the Nixon/Kissinger case demonstrates — was described by an ASD member as “brain dead or taking a payoff” if she ruled against ASD.

    No such comment can be viewed as reasonable.

    Other examples of extreme language directed at Collyer can be found in this court filing by ASD mainstay Curtis Richmond. The filing uses words such as “treason” and phrases such as “Willfully Violated Her Judicial Oath” thus being “Guilty of Perjury of Oath, a Felony.”

    Richmond asserted that Collyer perhaps was guilty of as many as 60 felonies.

    No such language can be viewed as reasonable.

    Prosecutors haven’t fared much better. Dozens of pro se litigants using a pro se template practically screamed their assertions that prosecutors had “failed” to do this and “failed” to do that on matters pertaining to the production of “EVIDENCE” and “WITNESSES” and “VICTIMS” and that the ASD “action was based solely on the OPINIONS of the U. S. Government agents.”

    How reasonable is it to scream in court filings?  The judicial process is designed deliberately to ensure decorum precisely to guarantee that no side gets shouted down and that issues are decided in an atmosphere of dignity.

    Moreover, the record of the ASD case plainly shows that the prosecutors have produced evidence, prior even to introducing evidence at the evidentiary hearing last fall. Eight government exhibits of evidence were included in the August 2008 filing of the complaint. It’s all in the public record — and was in the public record long before the pro se litigants shouted that no “EVIDENCE”  had been produced.

    With respect to the screamed claim that the government relied exclusively on the “OPINIONS” of its agents, the record also plainly shows that even the ASD side agrees with some of those opinions. Here are just two purported “opinions” that both the ASD side and the government side agree on:

    • That ASD advertised that rebates “will” be paid until members received back 125 percent of their “advertising” spend.
    • That the government seized the money from Andy Bowdoin and that the money belonged to Andy Bowdoin, not ASD members.

    Bowdoin officially has held that position since August 2008, just days after the seizure. It is a theme in his court filings. Recently, though, he told ASD members in a conference call that the seized money belonged to them. The claim put him at odds with his own arguments in court, which the prosecution now claims is evidence of his willingness to lie to members he claims to be serving, while also lying to a federal judge.

    With respect to the shouted claim by the pro se litigants that the government “has failed” to produce any “VICTIMS” or “WITNESSES,” the claim is disingenuous to its core. A trial date has not even been scheduled in the case. The evidentiary hearing was exactly that — a hearing, not a trial. The hearing was held at ASD’s request. Collyer granted it in “the interests of justice.” Prosecutors were not required to try their case at the hearing. Nor were they duty-bound to produce their witnesses. It was ASD’s hearing.

    Nozette’s arrest yesterday quickly became an international story. The story will play out in some of the same venues the ASD case is playing out. It will be argued by highly skilled, highly trained prosecutors.  A highly skilled, highly trained federal judge appointed by the President of the United States and approved by the U.S. Senate will preside over the proceeding “in the interests of justice” for all parties, including Nozette.

    There will no reckless claims of judicial treason or of violating a judicial oath or of operating a “Kangaroo Court” — as has been the claim in the ASD case, against both Judge Collyer and her supervising judge, Royce Lamberth.

    The Nozette case is, after all, an espionage case, one in which the public outside the courtroom will discuss the real meaning of the word treason — something some of the ASD supporters should have been doing all along.

    The ASD case is, was and always has been about national security. If you doubt it, ask yourself if you really know who your autosurfing neighbor is — and then ask yourself if you can guarantee that all ASD members were pure as the driven snow and not interested at all in using a vehicle provided by Andy Bowdoin for criminal purposes.

  • BREAKING NEWS: FBI Arrests Maryland Man With ‘Star Wars’ Knowledge On Espionage Charges; Spy Case Will Be Co-Prosecuted By Office In Charge Of Alleged ASD Ponzi

    The FBI has arrested a Maryland man in a sting and charged him with attempting to pass U.S. defense and space secrets to Israel.

    Stewart David Nozette, 52, of Chevy Chase, Md., accepted $11,000 in payments from the FBI, believing the payments had come from the Mossad, Israel’s spy agency. The payments actually came from the FBI as part of the sting, and Israel was not involved, authorities said.

    Nozette once worked for the White House. He is among a group of scientists credited with discovering water on the moon in a project known as “Clementine,” and also has vast experience in weapons systems, including the Strategic Defense Initiative, where he worked in the Office of Survivability, Lethality, and Key Technologies, according to his resume.

    The Strategic Defense Initiative, which came into being under President Reagan, was known as “Star Wars.”

    “Those who would put our nation’s defense secrets up for sale can expect to be vigorously prosecuted,” said Channing D. Phillips, Acting U.S. Attorney for the District of Columbia. “This case reflects our firm resolve to hold accountable any individual who betrays the public trust by compromising our national security for his or her own personal gain.”

    Phillips is the boss of the prosecutors handling the AdSurfDaily Ponzi prosecution. His office will co-prosecute Nozette, along with the Counterespionage Section of the Justice Department’s National Security Division.

    The prosecution will occur in U.S. District Court for the District of Columbia, the same venue in which the civil-forfeiture case against ASD’s assets is being heard. The identity of the judge assigned to hear the case was not immediately clear.

    U.S. District Judge Rosemary Collyer, the judge in the ASD case, is one of the judges in the district.

    Nozette, who was charged with attempted espionage, faces a maximum sentence of life in prison, if convicted. The case is a reminder of the grave matters of national security that come to the attention of prosecutors in Phillips’ office, with Washington, D.C., being the center of government in the United States.

    “The conduct alleged in this complaint is serious and should serve as a warning to anyone who would consider compromising our nation’s secrets for profit,” said David Kris, assistant Attorney General for National Security.

    “The FBI is committed to protecting the nation’s classified information and pursuing those who attempt to profit from its release or sale,” said Joseph Persichini Jr., assistant director for the FBI’s Washington Field Office.

    On Sept. 3, prosecutors said, “Nozette was contacted via telephone by an individual purporting to be an Israeli intelligence officer, but who was in fact an undercover employee of the FBI.”

    “During that call, Nozette agreed to meet with the [undercover agent] later that day at a hotel in Washington D.C. According to the affidavit, Nozette met with the [undercover agent] that day and discussed his willingness to work for Israeli intelligence,” prosecutors continued.

    “Nozette allegedly informed the [undercover agent] that he had, in the past, held top security clearances and had access to U.S. satellite information,” prosecutors said. “Nozette also allegedly said that he would be willing to answer questions about this information in exchange for money.”

    An undercover agent “explained to Nozette that the Israeli intelligence agency, or ‘Mossad,’ would arrange for a communication system so that Nozette could pass information to the Mossad in a post office box,” prosecutors said. “Nozette agreed to provide regular, continuing information to the [undercover agent] and asked for an Israeli passport.”

    On Sept. 4, Nozette and the undercover agent met again in the same hotel, prosecutors said.

    During the meeting, Nozette told the agent that, although he no longer had legal access to any classified information at a U.S. government facility, “he could, nonetheless, recall the classified information to which he had been granted access, indicating that it was all still in his head,” prosecutors said.

    Nozette inquired about getting paid, saying “he preferred to receive cash amounts ‘under ten thousand’ [dollars] so he didn’t have to report it,” prosecutors said.

    At the conclusion of the Sept. 4 meeting,  Nozette said to the undercover agent, “Well I should tell you my first need is that they should figure out how to pay me . . . they don’t expect me to do this for free,” prosecutors said.

    Undercover FBI agents left $2,000 in cash in a letter in a designated post office box for Nozette on Sept. 10, prosecutors said.

    “In the letter, the FBI asked Nozette to answer a list of questions concerning U.S. satellite information,” prosecutors said. “The serial numbers of the bills were recorded. Nozette retrieved the questions and the money from the post office the same day.”

    On Sept. 16, agents captured Nozette on videotape as he left “a manila envelope in the designated post office box in the District of Columbia. The next day, FBI agents retrieved the sealed manila envelope that Nozette had dropped off and found, among other things, a one-page document containing answers to the questions posed by the undercover agents and an encrypted computer thumb drive.

    “One of answers provided by Nozette contained information classified as Secret, which concerned capabilities of a prototype overhead collection system,” prosecutors said. “In addition, Nozette allegedly offered to reveal additional classified information that directly concerned nuclear weaponry, military spacecraft or satellites, and other major weapons systems.”

    On Sept. 17,  undercover FBI agents left a second letter in the post office box for Nozette.

    “In the letter, the FBI asked Nozette to answer another list of questions concerning U.S. satellite information,” prosecutors said. “The FBI also left a cash payment of $9,000 in the post office box.”

    Nozette retrieved the questions and the cash from the post office box later that same day, prosecutors said.

    On Oct 1, undercover agents videotaped Nozette “leaving a manila envelope in the post office box,” prosecutors said. “Later that day, FBI agents retrieved the manila envelope left by Nozette and found a second set of answers from him. The answers contained information classified as both Top Secret and Secret that concerned U.S. satellites, early warning systems, means of defense or retaliation against large-scale attack, communications intelligence information, and major elements of defense strategy.”