[Ed Note: Ellen appeared on CNN's Lou Dobbs Tonight this evening to discuss this report. The video is now posted here.]
As we approach the 2008 general election, the structure of elections in the United States — once reliant on local representatives accountable to the public — has become almost wholly dependent on large corporations, which are not accountable to the public. Most local officials charged with running elections are now unable to administer elections without the equipment, services, and trade-secret software of a small number of corporations (primarily Election Systems and Software (ES&S), Hart InterCivic, Sequoia Voting Systems, and Premier Election Systems (formerly Diebold), though a few other corporations have a very small share of the market).
If the vendors withdrew their support for elections now, our election structure would collapse.
However, some states and localities are recognizing the threat that vendor dependency poses to elections. They are using ingenuity and determination to begin reversing the direction.
This week, VotersUnite.Org released a report [PDF] that examines the situation, how we got here, and steps we can take to limit corporate control of our elections in 2008 and reduce it even further in the future.
Case studies presented in our report give examples of the pervasive control voting system vendors now have over election administration in almost every state, and the consequences some jurisdictions are already experiencing. We discovered that such dependency has allowed vendors to...
For over two years Election Integrity attorneys have been urging the state of Ohio to file suit against Diebold/Premier, ES&S, and Hart for failure to meet their contractual obligations with the state. The Secretary of State ignored that urging. It was only after Diebold/Premier filed suit against the state that the state took action in a countersuit. Rather than being courageous plaintiffs in this case, the state is a defendant and Diebold/Premier chose the most favorable court to hear the case. If the state had done the right thing two years ago they very well may have had the funds to have gotten rid of all Diebold DREs in the state for this November. Instead counties are still at the mercy of Diebold and their flawed voting systems. And remember, it may be Diebold/Premier in this case but the other vendors play the same game in different ball parks. They are all complicit. For more on this issue see HERE....
Guest Blogged by Dan Wallach of Rice University...
Ed Note: We recently ran an article covering vote-rigging software whistleblower Clint Curtis' testimony last week during a hearing before the Texas Legislature's House Committee on Elections. Curtis detailed for legislators how easy it is to flip an election electronically, without detection. Here is another perspective from that same hearing…
Last week, I testified before the Texas House Committee on Elections (you can read my testimony). I’ve done this many times before, but I figured this time would be different. This time, I was armed with the research from the California “Top to Bottom” reports and the Ohio EVEREST reports. I was part of the Hart InterCivic source code team for California’s analysis. I knew the problems. I was prepared to discuss them at length.
Wow, was I disappointed. Here’s a quote from Peter Lichtenheld, speaking on behalf of Hart InterCivic:
Security reviews of the Hart system as tested in California, Colorado, and Ohio were conducted by people who were given unfettered access to code, equipment, tools and time and they had no threat model. While this may provide some information about system architecture in a way that casts light on questions of security, it should not be mistaken for a realistic approximation of what happens in an election environment. In a realistic election environment, the technology is enhanced by elections professionals and procedures, and those professionals safeguard equipment and passwords, and physical barriers are there to inhibit tampering. Additionally, jurisdiction ballot count, audit, and reconciliation processes safeguard against voter fraud.
You can find the whole hearing online (via RealAudio streaming), where you will hear the Diebold/Premier representative, as well as David Beirne, the director of their trade organization, saying essentially the same thing. Since this seems to be the voting system vendors’ party line, let’s spend some time analyzing it.
Complaint Against Hart InterCivic Withdrawn Following Adverse Ruling Limiting Whistleblower Claims
VIDEO/AUDIO: Brad on This Weekend's 'Ring of Fire' Discussing Latest Case Developments with Attorneys Papantonio and Schultz...
Reported by Brad Friedman, from the road...
The whistleblower lawsuit against voting machine company Hart InterCivic, as filed in federal court on behalf of former employee William Singer, has been withdrawn following a decision by the Supreme Court that makes pursuing the case nearly impossible, according to the law firm who originally filed the complaint.
The suit had been sealed for nearly two years as the Dept. of Justice asked for extension after extension during their decision on whether or not to join the case. Earlier this year, they ultimately decided not to join the case, as we reported last March, leaving the firm of Levin Papantonio Thomas Mitchell Echsner & Proctor, P.A to proceed on their own. The DoJ declines to join some 76% of such cases.
In the interim, while waiting for the DoJ, the case of Rockwell Intl Corp. v. U.S. [PDF] came before the U.S. Supreme Court, and the findings in that decision, as attorney Mike Papantonio told The BRAD BLOG, has "made it next to impossible to proceed with any and all federal whistleblower (qui tam) cases."
The decision found that Rockwell was required to pay millions of dollars under the federal False Claims Act to the federal government, but that the relator of the case --- the insider who blew the whistle --- was not entitled to any of that money, nor even for the millions of dollars accrued in legal costs since the amended complaint, filed with the Justice Dept., included information about which the relator did not have direct inside knowledge.
The SCOTUS finding, as expressed for the majority by Justice Antonin Scalia, may well hamstring future whistleblower cases in federal courts, according to legal experts.
"I used to think qui tam was the way to go," Papantonio told me as his firm was weighing their decision on how to proceed after the case was finally unsealed, "but now I just don't know anymore."
Papantonio's Florida law firm has used the qui tam laws successfully in the past, and has taken on giants such as the Tobacco Industry. After he and his radio partner Robert F. Kennedy Jr. had learned about Singer's case from The BRAD BLOG --- we originally reported Singer's extraordinary saga back in early 2006 --- they decided to launch the federal fraud suit on his behalf later that year.
(I was interviewed about the withdrawal of the federal case by Mike Papantonio for this weekend's Ring of Fire radio program, which he co-hosts with Robert F. Kennedy, Jr.. A video version of the interview is also posted on their GoLeft.TV site. Both versions are now posted in full at the end of this article.)
Though the attorneys working on the case have gone out of their way to express their faith in both Singer and his remarkable complaint --- detailing more than 40 federal fraud allegations, and accusing Hart of doctoring voting machines, covering up system failures, including the loss and miscounting of votes, and other malfeasance, in order to attain contracts and payment under the Help America Vote Act (HAVA) of 2002 --- the chance that millions of dollars spent pursuing the case might be unrecoverable at the end of the process, even if successful, in light of the Rockwell decision, forced them to withdraw the complaint from federal court...
We first asked Shepston, an airplane engineer, about election integrity issues. Interestingly, despite running in the extremely "red" Orange County against the Republican Miller and expressing concern for election integrity issues in general, Shepston was not worried about the fairness of elections in his own district:
"I vote in my district and I do think we have fair elections there... I do worry about election integrity in general. I wonder what Republicans are afraid of when they don't want to have fair elections. I don't want to have to guess, I don't want to have to trust that my vote or that voters' votes count. I want verified ballots."
Unfortunately, as Orange County is one of two counties left in California where unverifiable DRE (usually touch-screen) voting machines have been allowed for use by all, Shepston seems somewhat out of step with the ability, or lack thereof, to verify even a single vote cast on such machines in his own district. Almost inexplicably, CA SoS Debra Bowen decertified use of almost all DRE systems in the state, other than one per polling place to meet federal accessibility voting standards, and DRE machines made by Hart InterCivic. Shepston's Orange County still uses those wholly unverifiable Hart voting machines.
Shepston, who says he considers himself part of the netroots movement, is a political newcomer who was encouraged to run for office by fellow bloggers at the Daily Kos website. Yet despite the fact that many of these bloggers are helping with Shepston's campaign, he directed some harsh words towards the Daily Kos:
"It's not the community that it used to be... And what's happened is that now that I've been there for so long I know the good writers and I go to just them. I don't branch out because it seems like every other diary that I get to it's just not worth it to me anymore. I don't learn anything... It's turned into a shouting match sometimes. It's not the same community that it was when I was there before."
Our complete interview (6:46), shot this week at a fund raising event here in Los Angeles with Ambassador Joe Wilson (more videos to come), follows below. You can find out more about Shepston at his Ron Shepston for United States Congress website...
Sequoia Voting Systems' CEO, Jack Blaine, Sent Deceptive Letter to Windy City Officials Following 'Evasive' and 'Troublesome' Testimony on his Company's Control by Smartmatic, a Chavez-tied E-Voting Firm
Documents Reveal Officials Sought to Ensure Venezuelan Company's Divestiture of Sequoia Was 'Not a Sham Transaction Designed to Fool Regulators'; Recent Reporting by The BRAD BLOG Reveals That it Was...
-- by Brad Friedman
The CEO and President of one of America's largest voting machine companies, Sequoia Voting Systems, gave both deceptive, and carefully selective, answers in his reply to a letter sent earlier this year from two high-ranking officials in Chicago, according to documents recently obtained during an ongoing investigation by The BRAD BLOG.
Sequoia's chief executive, Jack Blaine, repeated knowingly false answers, at least three different times, in his January 18 response to Chicago Alderman Edward M. Burke and the Chair of Chicago's Board of Election Commissioners Langdon D. Neal. The pair had written to the company on January 11, expressing concerns about the truth behind Sequoia's claims that they had completely divested from their purportedly "former" parent company, Smartmatic, the Venezuelan-run firm with direct ties to Hugo Chavez and his government.
Last year, as media reports revealed the true extent of Smartmatic's shadowy foreign ownership --- and with it, the direct control of some 20% of U.S. elections --- the firm came under close scrutiny by federal investigators from Treasury Department, the FBI and the IRS. In November of last year, Sequoia announced that it had "completely" divested from Smartmatic in a management team-led buyout, thus ending an official review by Treasury's Committee on Foreign Investment in the United States (CFIUS).
But in January, the officials from the Windy City --- where Sequoia holds one of the company's most lucrative contracts --- had continuing concerns about whether the sale was legitimate, or simply a dodge to avoid scrutiny by federal investigators. They were right to be concerned.
In their letter, Burke and Neale requested written responses from Sequoia after what was described as "evasive" and "troublesome" sworn testimony from Blaine the previous year, following "malfunctions of Sequoia voting machines during primary elections held on March 21, 2006."
In his testimony before a Chicago City Council joint committee in April of 2006, Blaine had claimed he didn't know the specific details of the financial arrangement that existed between Sequoia Voting Systems, Inc., and the Smartmatic Corporation, despite being president of both companies at the time. He did, however, manage to admit to the joint committee that at least 15 Venezuelan nationals were flown in to assist in the tabulation of votes in the troubled March '06 election and that the Venezuelans had access to Sequoia's source code. Blaine also conceded that it was "possible" that Chavez' government could hold an interest in the company, but that he wasn't certain because the ownership of Smartmatic was concealed in an off-shore trust.
In their series of follow-up questions to Blaine in January 2008, Alderman Burke noted that "the entire Smartmatic episode has served as a reminder of how important it is to know and trust who is counting the votes in our elections."
"It is therefore important," he continued, "to confirm that the sale of Sequoia by Smartmatic is not a sham transaction designed to fool regulators and to further confirm that Smartmatic and the government of Venezuela have no ability to influence or control the new owners of Sequoia."
Blaine's written responses to the officials, sent to Neale the following week, were dishonest, misleading, and even cleverly evasive on at least one crucially important point. His answers also contradict details recently exposed in a series of investigative exclusives by The BRAD BLOG, revealing several startling facts about the true ownership and control of Sequoia.
Moreover, after we broke the news in April, concerning the attempted hostile takeover of Sequoia by competitor Hart InterCivic, Blaine appeared to joke with employees during a confidential company-wide "town hall" teleconference about "the line" he used with yet another Chicago official, Cook County Clerk David Orr. "He accepted it completely," Blaine told employees, as he underscored the importance of keeping details of the attempted takeover confidential, and how he was being less than forthcoming about it with the company's customers...
County ClerkDana DeBeauvoir said she is committed to a point-by-point review of the county's eSlate machines, in the wake of a federal whistle-blower's lawsuit alleging that Hart InterCivic overpromised and underdelivered on the machines. The organization Vote Rescue was on hand at Tuesday's Commissioners Court meeting to provide copies of Hart technician William Singer's lawsuit, which alleges that Hart stretched reports of the performance of the eSlate in Ohio in order to secure its share of the $4 billion set aside in the Help America Vote Act. DeBeauvoir said she's not yet willing to pull the plug on the machines but would if she found significant problems in light of the lawsuit's allegations. Vote Rescue would prefer the county return its machines and choose to count ballots by hand.
The complaint charges fraud and other violations of the False Claims Act by Hart, including allegations the company failed to test its products properly, and frequently at all; withheld information from prospective clients about the potential loss of votes in its voting systems; dummied-up machines, reports, and test results presented to clients in sales presentations; and much more in an attempt to win state and county contracts and the federal money that came with them...
Smartmatic Co-Founder, Employee, and Shareholder Dead After Both Engines on Small Plane Reportedly Failed Just After Takeoff
News Follows Reports by The BRAD BLOG Concerning the Venezuelan Firm's Continuing Control Over Beleaguered American E-Voting Outfit, Sequoia Voting Systems...
A small plane, carrying the co-founder of Venezuelan voting machine company Smartmatic, crashed earlier this week shortly after take-off from the Caracas airport, killing two employees of the company, and several others on board and on the ground. The initial reports from a foreign paper indicated that the cause of the crash may have been the unusual failure of both engines on the small plane.
Smartmatic has been named as a subject in several recent, exclusive, investigative reports here at The BRAD BLOG, surrounding questions of the Venezuelan firm's apparent continuing control over the American e-voting company, Sequoia Voting Systems.
Reports of Monday's crash also indicate that several highly-placed Venezuelan officials were, interestingly, among the first to respond after the plane crashed.
Here's the lede from yesterday's English-language coverage in the Miami Herald:
Voting system creator dies in plane crash
A founding partner of the Smartmatic voting system, headquartered in Boca Raton, was killed this week in Venezuela when a private plane he was traveling in plummeted into a home near the Caracas airport.
Alfredy Jose Anzola Jaumotte, 34, one of the creators of the voting system program, died at an area hospital Tuesday.
Also killed in the accident were the pilot, Mario Jose Donadi, a convicted drug-trafficker in both the United States and Venezuela; Smartmatic employee Eduardo Ramirez and two residents of the home that was struck by the falling aircraft at about 10 a.m. Monday
.
Smartmatic is the once-owner and --- as a very recent series of investigative reports from The BRAD BLOG has revealed (see, most notably: here, here and here) --- the still-controlling parent company to Oakland/Denver-based Sequoia Voting Systems, which is currently amidst a hostile takeover imbroglio with competitor Hart InterCivic of Austin, TX.
Despite claiming to have sold Sequoia to a management-led buyout team last November, and thus divested of all control of the company under pressure from an investigation by the U.S. Treasury Departments Commission of Foreign Investment in the United States (CFIUS), our recent exclusive investigative reports here have revealed that Smartmatic still holds direct and/or indirect control over several key aspects of Sequoia's operation, including ownership of the intellectual property (IP) rights for Sequoia's voting machines and tabulator software, and the right to negotiate where Sequoia may or may not compete in foreign markets...
Last of the DRE (Touch-Screen) Voting Machine Vendors Withdraws Attempt for Certification in the Empire State
Though There Remains Plenty About Which to Remain Vigilant...
Congrats to Bo Lipari and the NY Verified Voting crew, on a milestone in their long, and continuing fight for election integrity in the state of New York. Writes Lipari this morning:
It's now official. Liberty Election Systems has withdrawn their DRE from the New York State and has informed the State Board of Elections that they will not pursue further certification testing or fill their one current order. LibertyVote/Nedap was the only remaining vendor offering a DRE in New York. The move represents the end of an era in New York State, and could be a harbinger for what lies ahead in the rest of the nation...
...
So for the first time since HAVA passed in 2002, New York State has no DREs of any type being purchased by any county, or undergoing NYS certification testing for 2009 purchases. For the vendors who for 6 years told us “New York is a DRE state”, we tell you now as we told you then, “Wrong. New York is a paper ballot state.”
Now, of course, the fight will continue to make sure the state actually bothers to count those paper ballots when they get them, as it will be error-prone, hackable, optical-scan devices that are purchased across the state.
The good folks of NY will also want to keep a close eye on the attempted hostile takeover of Sequoia Voting Systems by competitor Hart InterCivic (as reported to date only by The BRAD BLOG, unfortunately) and in light of the $100 million worth of pending contracts NY now has with Sequoia for all new voting machines.
That $100 million hangs in the balance, as the contract with Sequoia may soon result in NY finding themselves in business with an entirely different company than they bargained for, one with a federal fraud suit hanging over the head, and one that could give a completely new meaning to the phrase: "I Hart NY"!
With Deadlines Past and Looming, Intense, Often Acrimonious, Background Negotiations Underway Between All Involved Firms
While Both Clients and Employees Are Kept in the Dark...
On Sunday, April 13th, following our Thursday April 10th exclusive investigative report revealing that the nation's 4th largest voting machine vendor, Hart InterCivic, was on the verge of a successful hostile takeover of the nation's 3rd largest voting machine company, Sequoia Voting Systems, in order to become the nation's 2nd largest powerhouse in the "election industry," Sequoia quietly issued a press release on their website, publicly confirming our report.
The release is not linked from their main page, but we were able to trip across it this morning nonetheless. We post it in full at the end of this article since Sequoia's website has been frequently hacked at times of late, and the company also has a history of revising, scrubbing and doctoring officially published material on their website without noting those changes.
While officials at both Hart and Sequoia have now confirmed our report, Sequoia has yet to fully inform its voting system clients around the country --- or even its own employees --- as to what's actually going on, even while a "high-priority" company-wide email was distributed immediately after our report went public, attempting to instruct employees to field no "calls from the media"...
If the mass media ever did its job, Brad Friedman could go back to his former life, the one before 2004 when election scandals became his full-time vocation...
We're greatly appreciative of Campana's coverage. Not only because he's very kind to us, but because --- as a total of four of his stories filed over the last two days reveal --- he has actually done what so few corporate journalists seem able to do today: Actual journalism.
Before we saw the piece mentioned above today, we had kind words about his coverage yesterday of the wholly under-reported Hart InterCivic federal fraud suit. But beyond that detailed piece, his follow-up story today and "related coverage" offered on both days has been top-notch. Here are links to each of his stories today and yesterday...
That, ladies and gentlemen, is what journalism is supposed to look like. And yes, if we had a few more hundred (we'd settle for a few more dozen) like Campana, we'd be more than thrilled to go back to what we were doing prior to falling into this remarkable American Nightmare. We look forward to the day we can take down our shingle entirely and leave all of the heavy lifting to folks like him who actually get paid to do this stuff.
(But until then, whatever support you can afford to help keep us going is appreciated...You are all we've actually got. So, please see below, and please keep spreading the word.)
Prices now slashed in The BRAD BLOG's Fund Drive! Please support our continuing coverage of your election system, as found nowhere else. Click here for a number of cool new collector's edition Premium products now available starting at just $5!
Local Media Outlet Finally Reports on the Stunning Allegations in William Singer's Whistleblower Suit, Local Election Officials Respond With the Same Old, Disingenous, Long-Ago Debunked Nonsense...
In Aurora, Illinois, today, Beacon News' Dan Campana files a very good report on the federal fraud suit filed against Austin, Texas, based voting machine company Hart InterCivic. The suit, alleging dozens of false claims and fraudulent activities by Hart in order to receive federal Help America Vote Act (HAVA) money, was filed originally by former employee turned whistleblower William Singer back in 2006, but did not become unsealed until March 27th, when The BRAD BLOG covered it, along with posting the full stunning complaint [PDF].
Beacon News is based in Kane County, IL, which uses the faulty Hart voting systems in question.
Campana's report today --- which quotes yours truly in a number of places --- is the only corporate media coverage of the lawsuit in the nearly three weeks since the case was finally unsealed. Until now, there's been the fairly extensive coverage found on this blog, an item on the same day the case was unsealed filed by Kim Zetter at WIRED's "Threat Level" blog (which we replied to here), and a very short squib from AP on the same day, which, according to a quick Google News search, was carried by only a single news outlet, CBS 4 in Denver.
(For the record, our extensively detailed and sourced report on Hart's attempted takeover of Sequoia late last week has been picked up by nobody, other than ComputerWorld where we, ourselves, filed a short summary report. That, despite officials from both Hart and Sequoia having confirmed the accuracy of our report, and the fact that Hart, which controls some 8% of the voting market in this country, is about to swallow up Sequoia Voting Systems, which controls 20% of it, to become the nation's second largest e-voting machine vendor. We'll know by Tuesday at the latest, most likely, if Sequoia was able to save itself from Hart's hostile takeover.)
So with a dearth of coverage anywhere but here, we can heartily recommend Campana's report on Singer's suit. His article includes comments from us (as mentioned), one of Singer's attorneys, Hart spokesperson Peter Lichtenheld (who shamelessly plays the tired old "conspiracy theory" card), some Election Integrity advocates from the non-partisan Illinois Ballot Integrity Project, and some state and local Kane County election officials who have deluded themselves into believing their Hart machines are safe for use in American democracy.
When Campana interviewed us for his story, we suggested he ask any of the election officials he planned to interview for a single piece of evidence to prove that any single vote, ever cast during an election on a Hart DRE (Direct Recording Electronic) voting machine in the county, has ever been recorded accurately, as intended by a voter.
Though Campana references our challenge in his report ("Friedman contends no government officials can prove the votes cast on electronic machines can be accurately linked to tallies",) he doesn't quote any of the officials as being able to offer such evidence. Little surprise, because they can't produce such evidence. It's strictly impossible. Yet they continue to use these machines anyway.
But he does manage to get a few amusing and wholly unsupportable statements from some of those deluded officials. We're delighted to spend our Sunday dismantling them --- both the statements, and the officials...
Systems Made by Diebold, Sequoia and Hart InterCivic Are 'Still Going to Have Same Viral Vulnerabilities Found' During California's 2007 Study...
A bunch of world-class computer scientists testified publicly this week that "U.S. Presidential Election Can Be Hacked".
As stunning as that sounds, there's nothing new here necessarily to readers of The BRAD BLOG, other than the fact that outlets like the IDG News Service and PCWorld are reporting it --- out loud --- and that the computer scientist community, specifically those who have been studying these systems, are now out and out saying it --- in public...and out loud.
"The three systems we looked at are three of the most widely used around the nation," warned professor David Wagner of the University of California, "They're going to be using them in the 2008 elections; they're still going to have the same vulnerabilities we found."
Wagner was speaking about e-voting system made by Diebold, Sequoia Voting Systems and Hart InterCivic which he examined during CA Sec. of State Debra Bowen's independent "Top to Bottom" review last year. He "and his team found that they could introduce a computer virus to any of the three systems, which would then spread throughout the county and ultimately skew the vote count," the IDG News Service reports.
While our readers may be familiar with the above, our friend "DHinMI" and his fellow misinformed DailyKos front pagers may want to give this short article a quick look sometime soon. Particularly the part about paper ballots, and that simply having them is not enough...if nobody bothers to actually count them.
Here's the key grafs from the article...Along with a special clip for the dangerously misinformed/misleading dKos boys and girls...
Desperate to Stop the Deal, Sequoia's Owners Frantically Seek Funding, Legal Options, All of Which Have so Far Failed Enough to Lead the Judge Working on the Case to Regard One Such Legal Argument as a 'Conspiracy Theory'
Merger of Two Companies Would Likely Create New E-Voting Powerhouse, Face Federal Scrutiny, Come as Surprise to Sequoia's Current Clients...
-- Brad Friedman
As if Sequoia Voting Systems doesn't have enough trouble already, the company now needs some $2 million dollars in cash...quickly. Without it, it is likely to be subsumed by one of its nearest competitors, Hart InterCivic of Austin, TX, as soon as next Tuesday, The BRAD BLOG has learned.
In what could well be a major shift on the American election industry landscape --- and certainly on elections themselves in dozens of states across the country --- voting machine company Hart InterCivic informed the current owners of the beleaguered Sequoia of their intention to acquire ownership of the company in a move which could take effect as early as next week.
The attempted hostile takeover --- which, we've learned, has been quietly in the works behind the scenes since mid-February --- has set off a building panic among the senior management and owners at Sequoia, whose money woes had already led them to schedule a shut-down of their Oakland headquarters. That shop is to close within a matter of months, as the operations for the company are to be consolidated at its Denver offices.
The takeover by Hart is made possible in the wake of a deal made by Sequoia's current owners, SVS Holdings, Inc., with its former owners, the off-shore consortium Smartmatic. Smartmatic was forced to give up control of the company after the media and Congress noticed in 2006 that the company had ties to Venezuela's Hugo Chavez. The officers and owners of SVS are comprised largely of previous Sequoia officials who took over the company after Smartmatic's failed attempt to find an outside buyer in 2006. The deal resulted in an agreement between SVS and Smartmatic for the latter to hold a $2 million note from the purchase. Smartmatic now appears ready to sell that note to Hart as part of a $16 million dollar deal which SVS has a contractual right to match within a 60-day period, ending on April 15th.
Sequoia is believed by election experts to be this country's third largest voting machine company, followed by Hart. The combined operation, should the takeover be completed, could well create a new powerhouse in the industry, displacing #2 Diebold/Premier, and coming up just behind the country's currently largest election vendor, ES&S.
Court documents obtained by The BRAD BLOG reveal that Hart notified SVS of its intention to purchase the $2 million note held by Smartmatic on February 15th, giving the group of owners and share holders of SVS --- including CEO and President Jack Blaine, and VPs Michelle Shafer and Edwin Smith (whose names BRAD BLOG readers may recognize) --- just 60 days to match the offer Hart had given to Smartmatic. As the deadline nears, Due Dilligence processes have begun, and are near the final phases of completion at Sequoia...whether company management likes it or not.
Hart's move has sent Sequoia/SVS executives into a legal and financial tizzy and --- perhaps taking a page from Hillary Clinton's campaign book --- the company seems to be throwing the legal kitchen sink at both Hart and Smartmatic in an attempt to nullify Hart's offer. Court documents reveal arguments that Hart's is not a "bona fide" offer that SVS is legally required to match. So far, however, those legal maneuvers, reflected by a dizzying array of motions and cross-motions, suits and counter-suits --- completely unreported by anyone in the media until now --- have all been summarily and soundly rejected by the Delaware magistrate adjudicating the matter.
Every legal effort by Sequoia and SVS to dispatch with the hostile takeover attempt has failed miserably so far, leading Vice Chancellor Stephen P. Lamb of the Court of Chancery in Delaware to even describe one such legal theory of SVS' as...(big irony alert!)...a "conspiracy theory"!
But while Sequoia faces a plethora of legal liabilities concerning their oft-failed voting systems, Hart InterCivic faces its own share of challenges with a pending --- and damning --- federal fraud/qui tam suit against the company, as unsealed late last month. Moreover, Hart's acquisition plan could face scrutiny from members of Congress and Treasury Department officials, as well as states across the country who thought they had turned over control of their elections to Sequoia, only to soon learn there will be a new owner, not of their choosing, of the secret software and devices which determine the results of their public elections.
While litigation over claims of fraud and failure in both company's voting systems await, so does at least one major prize to the victor of this grudge match: New York state's soon-to-be-completed $100 million deal with Sequoia...or maybe now with Hart...or...whoever...
Along With Some Very Kind Words About The BRAD BLOG...
Sitting in this week for Robert F. Kennedy, Jr, David Bender joins Ring of Fire co-host/attorney Mike Papantonio to discuss, in the first five minutes of the show, the finally-unsealed qui tam fraud suit brought by Pap and RFK Jr's law firms against voting machine company Hart InterCivic, on behalf of former employee/computer technician turned whistleblower William Singer.
In the following clip, which will air this weekend on Air America's Ring of Fire program, both Bender and Pap offer exceedingly kind words for The BRAD BLOG and yours truly. (Thank you kindly, gents.)
We had originally broken Singer's remarkable story back in 2006. Our conversations shortly thereafter with Kennedy, and then with Papantonio's lawfirm, led to the filing of the suit, alleging a host of improprieties and criminally fraudulent behavior by the voting machine company as they dummied up voting machines during sales presentations, and concealed known failures, such as the possibilities of lost and miscounted votes, in their systems.
Pap also notes, during discussion of the case, that the nearly-two years it had to stay sealed by law --- while the DoJ ate up time in deciding whether or not to join the case --- is unusual in and of itself. Normally, in such qui tam cases, the DoJ is given just 60 days to decide whether or not to join with the whistleblower on behalf of the United States. Pap also goes on to note what may, or may not, be a coincidence: the US Attorney in CO, where the suit was filed, was removed shortly after this case was brought in his district, but before the decision was ultimately made by the DoJ not to join the suit...For now...
UPDATE: Here is an audio version of the first five minutes of the show, for those who had problems using the video player above...
Company Employee Performance Review, Included in Complaint Itself, Dispels Assertion Made by Company Spokesperson
Other Replies from Defendant Similarly Debunked by Documents Obtained by The BRAD BLOG...
-- By Brad Friedman
In a statement given to the media last week, in response to a federal fraud/false claims act qui tam suit finally unsealed last week, a representative from the defendant, voting machine company, Hart InterCivic, alleged the suit's whistleblower, William Singer, was a "disgruntled employee."
Employee "Performance Evaluation" records written by company management, included in the complaint itself, however, would seem to strongly contradict the claims of company spokesperson Pete Lichtenheld, as given to a reporter last week.
Additional claims by Lichtenheld, as reported by Kim Zetter at Wired's Threat Level blog on Thursday, are also dispelled by a document from the U.S. Dept. of Justice, obtained by The BRAD BLOG. The DoJ, after requesting and receiving extensions for two years, has finally decided against joining the federal qui tam suit, for the time being, allowing it to become unsealed last week, so that it may now move forward in federal district court.
The lawsuit, posted in full by The BRAD BLOG after it became unsealed last Thursday, details an extraordinary list of fraudulent behavior by Hart InterCivic, as related by one-time employee Singer, who alleges the company deceived Election Officials in Texas, Ohio, Colorado, and elsewhere in hopes of receiving federal monies as distributed via the Help America Vote Act of 2002.
Allegations made in the suit include stunning revelations that Hart failed to test its products properly, and frequently at all, withheld information from prospective clients about the potential loss of votes in its voting systems, dummied-up machines, reports, and test results presented to clients in sales presentations, and much more in an attempt to win state and county contracts.
Much of the response to the suit by company spokesperson Lichtenheld, however, is easily dismissed upon examination of the evidence so far available in the case...
Meanwhile, over at tech 'zine InfoWorld, Robert X. Cringely takes notice of BRAD BLOG's exposé from earlier this week, on the man Sequoia Voting Systems is paying to "independently" review their failed AVC Advantage touch-screen machines (the ones that failed in NJ recently, but which are still set for use in the upcoming, crucial PA primary). He was as amused/horrified at whom they'd hired, instead of the actually qualified computer science professors at Princeton University whom Sequoia had threatened with legal action, should they dare a real examination of the company's faulty machines.
While I was digging through the Net looking for the skinny on Sequoia Voting Systems and its mystery contractor Kwaidan Consulting (aka Mike Gibbons), the Bradblog's Brad Friedman was doing the same. He managed to unearth a cached version of Gibbons' MySpace page that's just a wee bit different than the current model. Instead of a photo of Gibbons shaking hands with Bush I, this one shows a good-old-boy leaning against the hood of a pickup. The list of people Gibbons wants to meet has changed too. Instead of Jesus, Einstein, and Newton, Gibbons was looking for “a well endowed blonde nymphomaniac ... that likes to be under the influence of Jim Beam whiskey in a dimly lit room at least 3 times a week.” (Hmm, Jesus or a busty nymphomaniac – that's a tough call.) It's nice to know the gatekeepers of our electoral system go shopping for their code experts in New Orleans bordellos.
One small thought in response to the good Cringely here. Sequoia are not the "gate-keepers," they just think they are, and therein lie the problems. He, we, and you are the gate-keepers. And until now, we've failed horribly to keep the crooks and liars --- like the folks at Sequoia and Diebold and ES&S and Hart InterCivic (take a look at that report please Robert, and the stunning complaint downloadable with it!) --- outside of those gates.
By the way, with the crush of other news elsewhere, and even at The BRAD BLOG this week, our rather jaw-dropping report on Gibbons (even if we say so ourselves) was largely overlooked out there by the CMSM and even the blogosphere. These stories --- the embarrassing Gibbons/Kwaidan report, the remarkable federal fraud case against Hart, and all the others here --- don't spread themselves around. Please do not misunderestimate the importance of your DIGGING, REDDIT-ing, and otherwise emailing and linking up to these stories far and wide. Notifying your local media about them (include the URL when you email them), can make all the difference.
We're doing our part, and appreciate whatever hand you can lend in return. It matters.
As we often say, this democracy ain't gonna save itself. And the gates ain't gonna keep themselves, either.
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After Two Years, the Qui Tam Suit Against Hart InterCivic, Brought by Whistleblower William Singer with Robert F. Kennedy Jr. and Mike Papantonio, May Proceed After DoJ Declines to Join Case
Download the Full Complaint here...
"The most serious thing any software company can do is not fully test its products," William Singer told The BRAD BLOG this afternoon about the federal fraud case he filed nearly two years ago, which has finally been unsealed by a judge as of today.
"To release a product for important purposes that has not been tested at all is quite shocking, I would say. Especially since it indicates that nobody can predict what, when, or how it might fail," Singer explained about the e-voting systems made by Hart InterCivic, for which he worked as a technician several years ago. "It would make a mockery of any certification."
Despite having some direct involvement in the case from the beginning, The BRAD BLOG has been unable to report any details on it for going on two years --- we haven't even been able to offer the names of the plaintiff or defendant in the case --- since originally reporting that it had been filed in federal court, due to the fact that it was under seal, waiting for the U.S. Attorney General to decide whether the DoJ would join the suit or not.
Singer's suit is the fraud case which originally made waves when it was first filed two years ago, with the aid of Robert F. Kennedy, Jr., and Florida attorney Mike Papantonio, until it then went "underground" due to the legally mandated seal disallowing the plaintiff and his attorneys from offering any specific details to the public.
As AP reported today, the seal on that federal qui tam (fraud, false claims) complaint, brought on behalf of the United States by Singer against Hart, one of the big four American voting machines companies, has now been lifted, and the case may finally proceed as originally filed.
The BRAD BLOG has obtained the complete complaint and the judge's order lifting the seal...
Fort Bend County (Tom Delay County) Election Administrator Forced to Resign On Eve of State Primary After Advocating for Paper Ballots...
Another Election Director with the temerity to speak out with concerns about E-voting has been done away with. This time in Texas.
As Early Voting starts today in the crucial Texas Primaries, it looks like we've got yet another new martyr --- from the rare ranks of Election Officials --- who has reportedly been taken out by "the powers that be" during a fight for the ideas of Election Integrity, which he even went so far as to mention on a Houston television news report, if you can imagine such a thing.
In advance of an upcoming screening of the new documentary film, UNCOUNTED: The New Math of American Elections (Feb. 21 at Sojourner’s Church in Charlottesville, VA), David Swanson covers the problems with the electronic Hart Intercivic DRE voting systems in his own home town for the Charlottesville Weekly, and unearths the following gem...
Q: How do I know that my vote has been cast and counted?
A: Whenever a voter presses the CAST BALLOT button and the waving American flag appears, the vote is cast and counted.
Ah, well. Glad that's settled. God bless American faith-based democracy. Long may she wave. You folks in Charlottesville can now rest easy.
Please support The BRAD BLOG's Fund Drive and our continuing coverage of your election system, as found nowhere else. Click here for a number of cool new collector's edition Premium products now available for new contributors!
From the selection of Sarah Palin as Veep, to the desperate Hail Mary that was the Republican National Convention,
it's clear the GOP won't be going down without a fight. But whether it's one they can win is another question...
Readers will recall that as of yesterday Palm Beach Co Florida officials had lost well over 3,000 ballots sometime between the primary election and an election recount. Earlier today there were announcements that over 2700 ballots had been found. Late this afternoon the officials were supposed to meet to announce whether they had found all of the missing ballots and why those ballots went missing in the first place.
Were the ballots run through the high-speed optical scan machines during the recount and did the machines pick-up two or more ballots at a time thus not counting all of the ballots? Or, were the ballots in bins that were never counted?
The media is not clear on this issue yet so we are going to have to wait to find this out. If the machines were, in fact, grabbing two or more ballots at a time jurisdictions around the country need to be made aware of this possibility.
Meanwhile a report from Broward Co of the result of their state-mandated audit is a bit troubling. The county appears to have hand-counted one race on ballots from 16 precincts. The media is reporting that nine of the precincts hand-count matches the machine results. Seven precincts resembled original results by 95 percent or more. That is a huge number and should raise red flags.
Instead one official said, “When you're dealing with people and paper, that's the best you're going to get.” How about agreeing 100% and you keep counting until you are sure that the people and paper are not the problem and then you find out what problem the machines had?...
Click for links to all of today's notable voting news headlines...
[Ed Note: Ellen appeared on CNN's Lou Dobbs Tonight this evening to discuss this report. The video is now posted here.]
The whistleblower lawsuit against voting machine company Hart InterCivic, as filed in federal court on behalf of former employee William Singer, has been withdrawn following a decision by the Supreme Court that makes pursuing the case nearly impossible, according to the law firm who originally filed the complaint.
The CEO and President of one of America's largest voting machine companies, Sequoia Voting Systems, gave both deceptive, and carefully selective, answers in his reply to a letter sent earlier this year from two high-ranking officials in Chicago, according to documents recently obtained during an ongoing investigation by 
A small plane, carrying the co-founder of Venezuelan voting machine company Smartmatic, crashed earlier this week shortly after take-off from the Caracas airport, killing two employees of the company, and several others on board and on the ground. The initial reports from a foreign paper indicated that the cause of the crash may have been the unusual failure of both engines on the small plane.
Smartmatic is the once-owner and --- as a very recent series of investigative reports from 
The good folks of NY will also want to keep a close eye on the attempted hostile takeover of Sequoia Voting Systems by competitor Hart InterCivic (as 
On Sunday, April 13th, following our Thursday April 10th 
Wow...We're blown away by 
As if 
In a statement given to the media last week, in response to a 
"The most serious thing any software company can do is not fully test its products," William Singer told 
Another Election Director with the temerity to speak out with concerns about E-voting has been done away with. This time in Texas.
In advance of an upcoming screening of the new documentary film, 
Trying to Win an Occupation
