Homeland Security News

Market Research Media Ltd, a technology market research firm, reports upsurge in demand for Deep Packet Inspection technology from U.S. Government agencies. According to Deep Packet Inspection (DPI): U.S. Government Market Forecast 2010-2015, the U.S Government will invest about $7 Billion in deployment of Deep Packet Inspection (DPI) technology in 2010 – 2015 to protect the national IT infrastructure.

A number of relatively small Deep Packet Inspection hardware and software vendors will likely win from CERT-sponsored Einstein program. Einstein, a recently declassified cyber security initiative, is a set of cyber defense measures intended to identify, analyze, prevent and actively respond to cyber threats.

Universal Detection Technology, a developer of early-warning monitoring technologies to protect people from bioterrorism and other infectious health threats, and provider of counter-terrorism consulting and training services, has received a purchase order from the U.S. Army for its bioterrorism detection equipment. The purchase order includes orders for UNDT’s 5-agent detection kits as well as equipment for the detection of Ricin and Staphylococcal enterotoxin B (SEB).

To date, the The Transportation Security Administration (TSA) has awarded $15 million in American Recovery and Reinvestment Act funding for 400 fixed ETD units. Additionally, President Obama’s fiscal year 2011 budget prioritizes key investments in aviation security, including $39 million to purchase approximately 800 portable ETD machines.

Since the Christmas Day failed attack TSA has increased its random use of ETD technology within security checkpoints to screen passengers’ hands and carry-on luggage. In addition, TSA piloted the use of ETD technology in both the checkpoint queue and boarding areas for two weeks at the following airports:

• Raleigh-Durham International Airport,
• Hartsfield-Jackson Atlanta International Airport,
• Orlando International Airport,
• and Pitt-Greenville and Coastal Carolina Regional Airports in North Carolina.

There will be increased random use of ETD technology in areas where TSA currently conducts screening such as the security checkpoint, as well as in the checkpoint queue, and boarding areas. Officers may swab a piece of luggage or passengers’ hands, then use ETD technology to test for explosives. The swab is placed inside the ETD unit which analyzes the content for the presence of potential explosive residue. To ensure the health of travelers, screening swabs are disposed of after each use. Since it will be used on a random basis, passengers should not expect to see the same thing at every airport or each time they travel.

The new National Security Computing Center (NSCC) is launched at Sandia National Laboratories in Albuquerque, N.M. by NNSA. NNSA, established by Congress in 2000, is a semi-autonomous agency within the U.S. Department of Energy responsible for enhancing national security through the military application of nuclear science in the nation’s national security enterprise. NNSA maintains and enhances the safety, security, reliability, and performance of the U.S. nuclear weapons stockpile without nuclear testing; reduces the global danger from weapons of mass destruction; provides the U.S. Navy with safe and effective nuclear propulsion; and responds to nuclear and radiological emergencies in the U.S. and abroad.

Red Storm, supercomputing platform built at Sandia National Laboratories as part of NNSA’s stockpile stewardship program, enables the nation new opportunities to address national security challenges. Listed last year as one of the top 15 fastest computers in the world, Red Storm is one of a suite of platforms across its national laboratories that NNSA’s Office of Advanced Simulating and Computing (ASC) uses to ensure the United States nuclear weapons stockpile continues to be safe, secure and reliable without nuclear testing.

The new National Security High Performance Computing center is a Department of Energy supercomputing facility for top-secret level applications. Its unique capabilities will be applied to help solve pressing national security problems such as cyber security and cyber defense, vulnerability assessments, informatics (network discovery), space systems threats and situational awareness. The system can also be used to provide high-fidelity, physical simulations and advanced signal and imagery processing for intelligence and national security tasks.

As part of NNSA’s stockpile stewardship program, ASC computers use models and simulations to understand and predict behaviors associated with aging weapons by, among other things, gauging various stages of a nuclear explosion. NNSA’s national laboratories employ the supercomputers daily to answer some of the nation’s most complex scientific and engineering questions.

Red Storm proved itself in broadened applications when it was called into service to assist the Department of Defense in planning Operation Burnt Frost, the highly successful engagement to safely shoot down an errant U.S. satellite in 2008. Use of this national asset was extended when the intelligence community recognized simulations at the extreme scales afforded by Red Storm could uniquely contribute to solving national security challenges.

NNSA authorized Sandia to upgrade Red Storm to a 280 teraflop computing capacity and extend its operations for at least four to five more years to power robust high-performance computing systems in both classified and unclassified environments. The Red Storm platform and facility are extensible, allowing them to accommodate future upgrades and improvements with minimal interruption.

Morpho Detection, Inc., part of the Safran group’s security business, has been awarded with a contract worth up to $50 million to supply the Israel Airports Authority (IAA) with its “System of Systems,” the most advanced checked baggage explosives detection system (EDS) available. The Morpho Detection System of Systems consists of an X-ray Diffraction-based XRD 3500™ EDS fully integrated with one or more CTX 9000 DSi™ Computed Tomography-based EDS. The use of orthogonal CT and XRD technologies delivers unparalleled levels of detection and allows airport security operators to enhance security, reduce cost and improve the passenger experience by dramatically reducing false alarms and resultant manual inspections of bags.

About Morpho Detection, Inc.
Sagem Sécurité’s Morpho Detection, a business of the Safran group (PAR:SAF), is a leading supplier of explosives and narcotics detection systems for government, military, air and ground transportation, first responder, critical infrastructure and other high-risk organizations. Formed in 2009 following Safran Group’s acquisition of GE Security’s Homeland Protection business, Morpho Detection integrates computed tomography (CT), Raman Spectroscopy, trace (ITMS™ technology), X-ray and X-ray Diffraction technologies into solutions that can make security activities more accurate, productive and efficient. With industry-leading products such as the Itemiser® DX trace detection system, the CTX line of explosive detection systems (EDS), and the StreetLab® Mobile hand-held chemical and biological substance identification unit, Morpho Detection’s solutions are deployed to help protect people and property in some of the most important and sensitive world locations.

OSI Systems, Inc., a vertically-integrated provider of specialized electronics and services, today announced that its Security division, Rapiscan Systems has received cancellation of a $17.6 million order from the U.S. government for multiple cargo and vehicle inspection systems. The original order was announced in October, 2009. As is standard for U.S. government awards, the government maintains the right to terminate a contract in whole or part without implying any fault of the contractor.

Former Senator Bob Graham (D-FL) and former Senator Jim Talent (R-MO), chair and vice chair of the bipartisan Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism, today released a report card indicating that the U.S. government is not taking the necessary steps to protect the country from the threats posed by WMD and terrorism.

Of 17 grades, the report card includes three failing “F” grades on rapid and effective response to bioterrorism; Congressional oversight of homeland security and intelligence; and national security workforce recruitment. Fortunately, all three grades could be substantially improved by committed leadership in Congress and the Administration.

“Nearly a decade after September 11, 2001, one year after our original report, and one month after the Christmas Day bombing attempt, the United States is failing to address several urgent threats, especially bioterrorism. Each of the last three Administrations has been slow to recognize and respond to the biothreat. But we no longer have the luxury of a slow learning curve, when we know al Qaeda is interested in bioweapons,” said Senator Graham.

“We are also enormously frustrated about the failure of Congress to reform homeland security oversight. The Department can’t do its job, if it is responding to more than 80 congressional committees and sub-committees. This fragmentation guarantees that much of what Congress does is duplicative and disjointed,” said Senator Talent.

The Report Card also includes “A” grades for achieving specific actions related to a review of domestic programs to secure dangerous pathogens, for finalizing and approving an Interagency Bioforensics Strategy, and for conducting recommended reorganization inside the National Security Council.

In December 2008, the Commission released its World at Risk report with a unanimous threat assessment: Unless the world community acts decisively and with great urgency, it is more likely than not that a weapon of mass destruction will be used in a terrorist attack somewhere in the world by the end of 2013. That weapon is more likely to be biological than nuclear. The Commission identified a series of recommendations and specific actions that Congress and the Administration should take to change the trajectory of risk. Today’s report card evaluates steps taken to implement these recommendations and to protect the United States from the threats of WMD proliferation and terrorism.

The threat assessment was based on multiple factors. There is direct evidence that terrorists are trying to acquire weapons of mass destruction and acquiring WMD fits the tactical profile of terrorists. Terrorists also have global reach and the organizational sophistication to obtain and use WMD. Finally, the opportunity to acquire and use such weapons is growing exponentially because of the global proliferation of nuclear material and biological technologies.

The bipartisan Commission on the Prevention of Weapons of Mass Destruction Proliferation and Terrorism was created by Congress to address the grave threat that the proliferation of weapons of mass destruction poses to the United States. Its report, World at Risk, identified 13 recommendations consisting of 49 actions that Congress and the Administration should take to change the trajectory of risk.

The Report Card assesses U.S. government progress in such areas as the biological threat, nuclear weapons proliferation, government reform, and citizen participation. WMD and Terrorism Commission will issue a much-anticipated Report Card next week, evaluating the government’s ability to protect the United States from the threat posed by WMD and terrorism. More information about the Commission, including the interim report, is available at www.preventwmd.gov.

Advanced Blast Protection, Inc., Florida-based armoring company that manufactures the RhinoRunner™ Bus used by the U.S. Military in Iraq and Afghanistan, has obtained Bankruptcy Court Approval for the sale of all of its assets free and clear of all liabilities. These assets consist primarily of the trade names RhinoRunner and RhinoPAK; customer lists; technical data packages; drawing packages; vehicle and product designs; manufacturing processes and procedures, marketing materials, customer lists, product formulations and patent rights for One-Way™ Glass (the “Assets”). On a cumulative basis since 2004, there has been a cumulative investment in the Assets of in excess of $18 Million and they have generated in excess of $42 Million in sales.

Related post: Homeland Security Market Grossly Overestimated

Twenty-two executives and employees of companies in the military and law enforcement products industry have been indicted for engaging in schemes to bribe foreign government officials to obtain and retain business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Channing Phillips for the District of Columbia; and Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. Twenty-one defendants were arrested in Las Vegas yesterday. One defendant was arrested in Miami. The indictments stem from an FBI undercover operation that focused on allegations of foreign bribery in the military and law enforcement products industry.

The 16 indictments unsealed today represent the largest single investigation and prosecution against individuals in the history of DOJ’s enforcement of the Foreign Corrupt Practices Act (FCPA), a law that prohibits U.S. persons and companies, and foreign persons and companies acting in the United States, from bribing foreign government officials for the purpose of obtaining or retaining business. The indictments unsealed today were returned on Dec. 11, 2009, by a grand jury in Washington, D.C.

In connection with these indictments, approximately 150 FBI agents executed 14 search warrants in locations across the country, including Bull Shoals, Ark.; San Francisco; Miami; Ponte Vedra Beach, Fla.; Sarasota, Fla.; St. Petersburg, Fla.; Sunrise, Fla.; University Park, Fla.; Decatur, Ga.; Stearns, Ky.; Upper Darby, Penn.; and Woodbridge, Va. Additionally, the United Kingdom’s City of London Police executed seven search warrants in connection with their own investigations into companies involved in the foreign bribery conduct that formed the basis for the indictments.

“This ongoing investigation is the first large-scale use of undercover law enforcement techniques to uncover FCPA violations and the largest action ever undertaken by the Justice Department against individuals for FCPA violations,” said Assistant Attorney General Lanny A. Breuer. “The fight to erase foreign bribery from the corporate playbook will not be won overnight, but these actions are a turning point. From now on, would-be FCPA violators should stop and ponder whether the person they are trying to bribe might really be a federal agent.”

“Corrupt payments to foreign officials to obtain or retain business erode public confidence in our free market system and threaten to undermine foreign governments,” said U.S. Attorney Channing Phillips. “These indictments set forth serious allegations and reflect the Department’s commitment to aggressively investigate and prosecute those who try to advance their businesses through foreign bribery.”

“Investigating corruption at all levels is the number one priority of the FBI’s Criminal Division,” said Assistant Director Kevin Perkins of the FBI’s Criminal Investigative Division. “In this era of global commerce, the FBI is committed to curbing corruption at home or overseas. Companies should prosper through honest business practices, not the practice of back room deals and bribery.”

The indictments allege that the defendants engaged in a scheme to pay bribes to the minister of defense for a country in Africa. In fact, the scheme was part of the undercover operation, with no actual involvement from any minister of defense. As part of the undercover operation, the defendants allegedly agreed to pay a 20 percent “commission” to a sales agent who the defendants believed represented the minister of defense for a country in Africa in order to win a portion of a $15 million deal to outfit the country’s presidential guard. In reality, the “sales agent” was an undercover FBI agent. The defendants were told that half of that “commission” would be paid directly to the minister of defense. The defendants allegedly agreed to create two price quotations in connection with the deals, with one quote representing the true cost of the goods and the second quote representing the true cost, plus the 20 percent “commission.” The defendants also allegedly agreed to engage in a small “test” deal to show the minister of defense that he would personally receive the 10 percent bribe.

The indictments charge the following executives and employees of the various companies in the military and law enforcement product industries:

* Daniel Alvirez, 32, and Lee Allen Tolleson, 25, the president and director of acquisitions and logistics at a company in Bull Shoals, Ark., that manufactures and sells law enforcement and military equipment;
* Helmie Ashiblie, 44, the vice president and founder of a company in Woodbridge, Va., that supplies tactical bags and other security-related articles for law enforcement agencies and governments worldwide;
* Andrew Bigelow, 40, the managing partner and director of government programs for a Sarasota, Fla., company that sells machine guns, grenade launchers and other small arms and accessories;
* R. Patrick Caldwell, 61, and Stephen Gerard Giordanella, 50, the current and former chief executive officers of a Sunrise, Fla., company that designs and manufactures concealable and tactical body armor;
* Yochanan R. Cohen, aka Yochi Cohen, 47, the chief executive officer of a San Francisco company that manufactures security equipment, including body armor and ballistic plates;
* Haim Geri, 50, the president of a North Miami Beach, Fla., company that serves as a sales agent for companies in the law enforcement and military products industries;
* Amaro Goncalves, 49, the vice president of sales for a Springfield, Mass., company that designs and manufactures firearms, firearm safety/security products, rifles, firearms systems and accessories;
* John Gregory Godsey, aka Greg Godsey, 37, and Mark Frederick Morales, 37, the owner and agent of a Decatur, Ga., company that sells ammunition and other law enforcement and military equipment;
* Saul Mishkin, 38, the owner and chief executive officer of an Aventura, Fla., company that sells law enforcement and military equipment;
* John M. Mushriqui, 28, and Jeana Mushriqui, 30, the director of international development and general counsel/U.S. manager of an Upper Darby, Penn., company that manufactures and exports bulletproof vests and other law enforcement and military equipment;
* David R. Painter, 56, and Lee M. Wares, 43, the chairman and director of a United Kingdom company that markets armored vehicles;
* Pankesh Patel, 43, the managing director of a United Kingdom company that acts as sales agent for companies in the law enforcement and military products industries;
* Ofer Paz, 50, the president and chief executive officer of an Israeli company that acts as sales agent for companies in the law enforcement and military products industries;
* Jonathan M. Spiller, 58, the owner and president of a Ponte Vedra Beach, Fla., company that markets and sells law enforcement and military equipment;
* Israel Weisler, aka Wayne Weisler, 63, and Michael Sachs, 66, owners and co-chief executive officers of a Stearns, Ky., company that designs, manufactures and sells armor products, including body armor;
* John Benson Wier III, 46, the president of a St. Petersburg, Fla., company that sells tactical and ballistic equipment.

All of the defendants except Giordanella were arrested yesterday by FBI agents in Las Vegas. Giordanella was arrested in Miami, also by FBI agents.

Each of the indictments allege that the defendants conspired to violate the FCPA, conspired to engage in money laundering, and engaged in substantive violations of the FCPA. The indictments also seek criminal forfeiture of the defendants’ ill gotten gains.

The maximum prison sentence for the conspiracy count and for each FCPA count is five years. The maximum sentence for the money laundering conspiracy charge is 20 years in prison.

SOURCE: U.S. Department of Justice

Smith & Wesson Holding Corporation (Nasdaq: SWHC), parent company of Smith & Wesson Corp., following announcement of the U.S. Department of Justice, immediately issued statement denying any knowledge of wrongdoing:

Through media reports today, we became aware of the Justice Department enforcement actions which were taken yesterday and which made reference to an employee of our company. We have no information beyond what has been reported and are prepared to cooperate fully with law enforcement in their investigation into this matter.