Keith Alexander Now Being Vetted By Everybody For Everything After Leaving The Protective Shelter Of The NSA

from the missing-the-old-'No-Such-Accountability'-already dept

Former NSA head Keith Alexander continues to draw the sort of attention he probably hoped he had left behind by resigning his post. His questionable business venture -- a private banking security firm seemingly dependent on patents and methods polished during his tenure at the NSA -- has drawn pointed questions from legislators and a second glance from the internal ethics apparatus of the intelligence agency.

Alexander apparently thought it would be fine for him to use the talents of the NSA's current Chief Technology Officer, Patrick Dowd, for his new private venture. You see, Alexander didn't want the country to lose a bright spy mind, but didn't really want his own IronNet Security firm to go without Dowd's talents either. So he compromised. The country could have Dowd full-time as long as he could spend 20 hours a week securing banks with Chief Keith.

Due to the extra level of scrutiny being directed at everything NSA-related, the agency decided to take another look at the this unholy unethical alliance. It didn't necessarily not like what it saw, but it wasn't absolutely enthralled with it either. But there will be no official statement forthcoming. Alexander has called the whole thing off.

On Tuesday, Alexander said: "While we understand we did everything right, I think there's still enough issues out there that create problems for Dr. Dowd, for NSA, for my company," that it was best for him to terminate the deal.
"Everything right" is apparently the equivalent of basically every other current and former intelligence official interviewed stating, "we've never heard of such a thing," and "pretty much a conflict of interest," etc.

In other news, Alexander's recently disclosed ("disclosed" pronounced "forced out of the NSA's clutches by journalist Jason Leopold's lawsuit") financial statements are gathering a bit more attention as well.

As I noted here, there were some questionable aspects about Alexander's investments, some of which related to government contractors, but nothing that screamed financial impropriety. The conclusion I reached was that the most surprising aspect was the NSA's adamant refusal to release these mostly innocuous declarations. There just wasn't much "there" there, from what I could see.

(The fact that the agency claimed the release of these financial disclosure statements could harm "national interests" was enjoyably ridiculous, but it's also the standard response when asked to open up about anything. Just because "security" is your middle name doesn't mean everything in your possession is instrumental to protecting the nation against terrorist activity.)

Shane Harris at Foreign Policy has done some deeper digging into Alexander's financial statements and excavated some rather strange investment patterns. Harris notes that there's very little in the way of discernible rationale for Alexander's purchases and sales. There's also no indication that any of these trades were very beneficial for Alexander's bottom line. And there's some weird dabbling in some markets where being the head of the NSA would possibly provide more insight than is available to other investors.
The financial disclosure documents, which were released to investigative journalist Jason Leopold and published this month by Vice News, reveal nothing explicitly about why Alexander sold the shares when he did. On Jan. 7, 2008, Alexander sold previously purchased shares in the Potash Corp. of Saskatchewan, a Canadian firm that mines potash, a mineral typically used in fertilizer. The potash market is largely controlled by companies in Canada, as well as in Belarus and Russia. And China was, and is, one of the biggest consumers of the substance, using it to expand the country's agricultural sector and produce higher crop yields.

"It's a market that's really odd, involving collusion, where companies essentially coordinate on prices and output," said Craig Pirrong, a finance professor and commodities expert at the University of Houston's Bauer College of Business. "Strange things happen in the potash market. It's a closed market. Whenever you have Russians and Chinese being big players, a lot of stuff goes on in the shadows."
The same day that Alexander moved his Potash Corp. shares, he also divested himself of his holdings in China-based Aluminum Corp., a state-owned entity that is the second-largest producer of aluminum in the world.

Alexander bought and sold shares in both companies, but never during price peaks or collapses. Instead, his divestments seem to be motivated not by profitability, but by the government's increasing interest in combating Chinese state-sanctioned hacking.
In the spring of 2008, shortly after Alexander sold his positions, senior U.S. officials began to speak on the record for the first time about the threat of cyber-espionage posed by Russia and especially China. Public attention to the intelligence threat was higher than it had been in recent memory. The optics of the NSA director owning stock in a company that his own agency believed may have been receiving stolen information from the Chinese government would have been embarrassing, to say the least.
Those embarrassing optics have been dulled by the passage of time. Withholding these yearly, mandatory disclosures for "national security" reasons has sheltered Keith Alexander from any embarrassing external questions over the last half-decade of investments.

Government agencies are supposed to be on the lookout for not only conflicts of interest, but the "appearance of impropriety." Alexander's investments (and his post-NSA ventures) both sport the outward trappings of impropriety. But everything being questioned now was previously signed off on by NSA officials as being above board. Now, even the NSA is second-guessing itself -- not because it's striving for a higher ethical standard -- but because the standard-operating-procedure of "hide everything" no longer works as well as it used to.

Filed Under: conflict of interest, conflicts, keith alexander, nsa, patrick dowd, surveillance
Companies: ironnet cybersecurity


Reader Comments

Subscribe: RSS

View by: Time | Thread


  • icon
    AricTheRed (profile), 24 Oct 2014 @ 3:34pm

    "And there's some weird dabbling in some markets where being the head of the NSA would possibly provide more insight than is available to other investors."

    Isn't that EVERY MARKET?

    reply to this | link to this | view in chronology ]

    • identicon
      Anonymous Coward, 24 Oct 2014 @ 4:20pm

      Re:

      As is mentioned, he didn't seem to act in direct economic investment interests. But that prospect is not exactly more positive than direct market manipulation. Having access to shareholder meetings in companies dealing in straight collusion and other openly corrupt practices could give contacts with some shady connections.

      reply to this | link to this | view in chronology ]

  • icon
    Coyne Tibbets (profile), 24 Oct 2014 @ 3:58pm

    Well, after all...

    Maybe Alexander was vetted by USIS, which likely would mean he's never been vetted before.

    Like those guys at TSA that wanted to search the passenger after arrival; everybody figures that now Alexander has left, maybe we ought to vet him.

    reply to this | link to this | view in chronology ]

    • icon
      tqk (profile), 25 Oct 2014 @ 10:18am

      Re: Well, after all...

      ... everybody figures that now Alexander has left, maybe we ought to vet him.

      Hopefully, this serves as an example to current and future government officials. One day, they'll no longer hold their privileged position to avoid scrutiny. Perhaps they should start cleaning up their act, or not get into the business of lying to their employer (citizens) in the first place.

      Sure, we're still going to send you to jail to pay for your misdeeds, but not for as long as we would've otherwise. Mea culpas are welcomed.

      reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 25 Oct 2014 @ 2:19am

    ...there's very little in the way of discernible rationale for Alexander's purchases and sales.
    So, consistent with everything else he's ever done.

    reply to this | link to this | view in chronology ]

  • identicon
    David, 25 Oct 2014 @ 3:33am

    Done everything right...

    On Tuesday, Alexander said: "While we understand we did everything right,

    People complain about revolving doors between governmental and privately organized crime syndicates, so Alexander thought he'd address their concerns by smashing the revolving door down.

    Sort of a "let them eat cake" moment. And indeed, the reality of those in power is distorted to a degree where there seems little hope for getting the country back to constitutional grounds other than cranking out the guillotines and restarting the republic.

    The current Constitution is fine if people could be bothered to heed it. However, the system for elected representation is too indirect for effectively avoiding the accumulation of power outside of democratic control, and the incumbents have no incentive to change that.

    The current political ruling class is as far remote from democracy as emperors were from clan leaders. The in-between layers have accumulated so much identity and control of their own that the basic idea of government is a hollow shell without meaning and not much more than a front for the actual structures of power.

    President and congress are marionettes without power and dignity that do as they are told, or else.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 25 Oct 2014 @ 9:53am

    Sadly we'll never know how many of our Government officials are supporting the other side, because offshore accounts to avoid taxes still exist, any of them could be bankrolling anything. I see it as no different than a physical presence.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 25 Oct 2014 @ 12:28pm

    Did anyone ever think that buying X number of shares in company 1 and selling Y number of shares in company 2 was effectively an encrypted signal to people in China and Russia about what to do with his OTHER (MUCH MUCH MUCH larger) investments?

    Similiar to the way a blindfolded "mind-reader" gets set phrases from his assistant so he knows what to say.

    reply to this | link to this | view in chronology ]

  • identicon
    Anonymous Coward, 19 Feb 2017 @ 5:34am

    vetted? how about good old fashioned head exam?

    https://www.theguardian.com/commentisfree/2013/sep/15/nsa-mind-keith-alexander-star-trek

    no wonder snowden booked hong kong hotel room with his own credit card while employed by nsa in hawaii. alexander was too busy masturbating before 22 feet wide star trek screen in his den.

    reply to this | link to this | view in chronology ]


Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Close

Add A Reply

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Techdirt Gear
Shop Now: Techdirt Logo Gear
Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

Close

Email This

This feature is only available to registered users. Register or sign in to use it.