Time: Thu Oct 16 07:52:16 1997
	by primenet.com (8.8.5/8.8.5) with ESMTP id HAA08857;
	Thu, 16 Oct 1997 07:52:12 -0700 (MST)
	by usr01.primenet.com (8.8.5/8.8.5) with SMTP id HAA16254;
	Thu, 16 Oct 1997 07:49:31 -0700 (MST)
Date: Thu, 16 Oct 1997 07:48:42 -0700
To: (Recipient list suppressed)
From: Paul Andrew Mitchell [address in tool bar]
Subject: SLS: "The Inslaw Scandal"  (fwd)

>>The Inslaw Scandal
>>A service of the
>>Washington Weekly 
>>During the Clinton administration, allegations of politicization have
>>been raised against the Justice Department. Concerns have been raised
>>that the Justice Department, mainly through Associate Attorney General
>>Webster Hubbell (now resigned and convicted for fraud), has been, and
>>still is used as an instrument for political purposes. During previous
>>administrations, the Justice Department was accused of being controlled
>>by arrogant bureaucrats who considered themselves above the law.
>>Probably the most glaring example of the latter is the Inslaw scandal
>>that started in 1982, but is still covered up to this date according to
>>several key players as well as Congressional aides.
>>Inslaw Inc. is a computer software company based in Washington, DC,
>>owned by William and Nancy Hamilton. Inslaw markets case management
>>software to courts and related justice agencies, to the insurance
>>industry, to large law firms, and to the law departments of
>>corporations. Inslaw's principal asset is a highly sophisticated
>>software program called PROMIS, a computer program which manages large
>>amounts of information
>>A Justice Department Above the Law
>>In 1982, Inslaw won a contract with the Department of Justice to install
>>PROMIS in U.S. attorney's offices. The person assigned by the Department
>>to manage the contract, however, was one C. Madison Brewer, who had just
>>been fired by Inslaw. Just one month after the contract was signed, Mr.
>>Brewer recommended that it be terminated even though Inslaw was
>>performing as agreed. The Department stole the software because it felt
>>that it was above private property law.
>>The Justice Department withheld payment for the software, and Inslaw
>>went into bankruptcy. Inslaw hired former Attorney General Elliot
>>Richardson as their attorney. Richardson filed a civil suit claiming
>>that Inslaw had been the victim of a conspiracy by the Justice 
>>In 1987, U.S. Bankruptcy Judge George Bason ruled in favor of Inslaw and
>>awarded Hamilton $6.8 million, saying that Justice Department officials
>>"took, converted and stole" PROMIS through "trickery, fraud and deceit."
>>Judge Bason lived to regret his ruling when his reappointment was denied
>>in a highly unusual move. Bason was replaced with one of the Justice
>>Department lawyers who had argued the Inslaw case.
>>The Inslaw case had now reached the level of a full government
>>The Octopus
>>Investigative Reporter Danny Casolaro was investigating possible links
>>between BCCI, Iran-Contra, and Inslaw. He called the covert operation,
>>in which the CIA was involved, "The Octopus."
>--- BEGIN ---
>Christopher Ruddy
>The Strange Death of Vincent Foster: An
>New York: The Free Press, 1997
>Pages 278-279
>Other controversial cases Lee has been
>involved with include New York's
>"preppie murder" case and the death of
>journalist Danny Casolaro. The former
>never came to trial because the accused
>Manhattan prep student, Robert Chambers,
>confessed to the accidental killing by
>strangulation of young Jennifer Levin
>during a sexual tryst in New York City's
>Central Park. Lee was to have been
>Chambers's defense expert.
>In 1991, Lee reviewed the death of
>Casolaro, a freelance reporter found
>dead of an apparent suicide in the
>bathtub of a West Virginia hotel room.
>Casolaro's family contested the ruling,
>citing the large number of cuts on the
>man's wrist and the fact that his papers
>were missing from his hotel room.
>Lee reviewed the case and bolstered
>official claims that the death was a
>suicide, based on blood-spatter
>analysis. The finding is still disputed
>by the family.
>Lee has worked on numerous government
>cases and boasts to colleagues of his
>close relationship with Attorney General
>Janet Reno....
>--- END ---
>>The Justice Department started sharing the illegally obtained PROMIS
>>software with other agencies, including intelligence agencies where
>>PROMIS was modified for intelligence purposes and sold to foreign
>>intelligence operations in Israel, Jordan, and other places. Michael
>>Risconsciuto of the Wakenhut security firm has testified that he was
>>contracted to install a "trap door" in the software to allow the CIA to
>>tap into PROMIS software worldwide. It appears that the original petty
>>crimes of the Justice Department have led to the exposure of a sensitive
>>national security operation.
>>As Casolaro continued his investigation he started to receive death
>>threats. He told his brother, "if there was an accident and he died, not
>>to believe it." On August 11, 1991, Casolaro was found dead in the
>>bathtub of a hotel room in Martinsburg, Virginia, where he had a meeting
>>with a U.S. Army Special Forces covert intelligence officer.
>>Following the death of Casolaro, Inslaw Attorney Elliot Richardson
>>called for an investigation. "It's hard to come up with any reason for
>>his death, other than he was deliberately murdered because he was so
>>close to uncovering sinister elements of what he called "The Octopus,"
>>Richardson said.
>>A Full Government Conspiracy
>>After several appeals, Judge Bason's ruling was finally reversed on
>>technical jurisdictional grounds in 1991. The Senate started
>>investigating the Inslaw scandal and found even more troubling
>>information: its investigation was hampered by an unwillingness by
>>Justice Department officials to cooperate, and because key documents
>>were reported missing or lost by the Department.
>>According to sworn testimony before the Committee, high level Justice
>>Department officials conspired to steal the PROMIS software and secretly
>>convert it to use by domestic and foreign intelligence services.
>>Ronald LeGrand, Chief Investigator for the for the Senate Judiciary
>>Committee told Hamilton and Richardson that a trusted Justice Department
>>source had confided that Inslaw "was a lot dirtier for the Department of
>>Justice than Watergate had been, both in its breath and depth."
>>The Bua Rebuttal (250kb)
>>After several Congressional investigations concluded wrongdoing by the
>>Justice Department and called for the appointment of a special
>>prosecutor, Attorney General William Barr in 1992 appointed lawyer
>>Nicholas Bua to investigate the Inslaw scandal. Bua impaneled a grand
>>jury, but dismissed it midway through the investigation, allegedly
>>because it was giving credence to the allegations and constituted a
>>"runaway" grand jury.
>>In June 1993 the Bua report was released. It cleared Justice officials
>>of any wrong doing in the case.
>>Inslaw Attorney Elliot Richardson issued a statement saying, "What I
>>have seen of [the report] is remarkable both for its credulity in
>>accepting at face value denials of complicity in wrongdoing against
>>Inslaw and for its failure to pursue leads making those denials
>>On July 12, 1993 Inslaw submitted a 90-page rebuttal of the Bua report
>>to Associate Attorney General Webster Hubbell. The rebuttal offered
>>evidence that the Bua report was false. What Inslaw probably did not
>>know at time, however, was that Webster Hubbell's and White House Deputy
>>Counsel Vince Foster apparently were linked to both Iran-Contra and
>>Inslaw through two Arkansas companies called Park-on-Meter and
>>On July 20, 1993 Vince Foster was found dead in Fort Marcy Park. Three
>>days later, attorney Paul Wilcher, allegedly investigating "The Octopus"
>>was found dead.
>>Mar 27 1995 Whitewater Update 	Starr Probing Links to Inslaw Murder
>>May 29 1995 Vince Foster's Frequent Travels 
>>Aug 14 1995 Whitewater Update 	Foster's ties to the National
>>Security                                      Acency
>>Aug 21 1995 Interview with Jim Norman, Author of "Fostergate" 
>>Mr.          Norman sheds light on what is really behind the death of
>>Vince           Foster
>>Aug 28 1995 Newsweek Mounts Counteroffensive Against Fostergate 
>>Sep 11 1995 Newsweek's Attack on Internet Conspiracy Theorists 
>>Sep 18 1995 Newsweek Described as Official Disinformation Organ 
>>Sep 18 1995 Official Foster Investigation Intensifies 
>>Sep 18 1995 Foster was Indeed Subject of
>>Counterintelligence                         Investigation 
>>Sep 18 1995 White House Responds to Foster Conspiracy Theories 
>>Sep 25 1995 Is Foster Key to "The Octopus?" 
>>Sep 25 1995 Letters to the Editor 	Jim Norman Responds to Claims
>>by                                         Sarah McClendon
>>        Open Letter to the Editor
>>	Well worth the Money
>>Sep 25 1995 Foster's Ties to Israelis Questioned 
>>Congress Finally Acts on Inslaw
>>After Inslaw owner Bill Hamilton distributed a report on the Inslaw
>>scandal to each member of the House Judiciary Committee, Congressmen
>>Jack Brooks (D-TX) and Charlie Rose (D-NC) tried to enact a bill that
>>would force an investigation of the Justice Department and the death of
>>Danny Casolaro, and pay reparations to the owners of Inslaw. Among the
>>allegations in the bill:
>>The following criminal statutes may have been violated by certain high
>>level Justice officials and private individuals:	
>>        `18 U.S.C. Sec. 371--Conspiracy to commit an offense.
>>	`18 U.S.C. Sec. 654--Officer or employee of the United
>>States                               converting the property of another.
>>	`18 U.S.C. Sec. 1341--Fraud.
>>	`18 U.S.C. Sec. 1343--Wire fraud.
>>	`18 U.S.C. Sec. 1505--Obstruction of proceedings
>>before                                       departments, agencies and
>>	`18 U.S.C. Sec. 1512--Tampering with a witness.
>>	`18 U.S.C. Sec. 1513--Retaliation against a witness.
>>	`18 U.S.C. Sec. 1621--Perjury.
>>	`18 U.S.C. Sec. 1951--Interference with commerce by threats
>>or                                violence (RICO).
>>	`18 U.S.C. Sec. 1961 et seq: Racketeer Influenced and
>>Corrupt                                 Organizations.
>>	`18 U.S.C. Sec. 2314--Transportation of stolen
>>goods,                                         securities, moneys.
>>	`18 U.S.C. Sec. 2315--Receiving stolen goods.
>>The bill, H.R. 4862 was introduced in the House on July 29, 1994, but
>>died without any action by the Democratic leadership in the waning days
>>of the 103rd Congress.
>>Under the new Republican leadership, Senator Orrin Hatch introduced a
>>similar bill, S. 740. On May 3, 1995, the Senate voted to commit the
>>bill, which would pay reparations to the owners of Inslaw, to the chief
>>judge of the United States Court of Federal Claims for a report thereon. 
>>Last updated September 24, 1996.
>>[Sources: Karen-Lee Bixman, U.S. House Resolution 4862, Rep. Charlie
>>If you are not already a Washington Weekly subscriber, you can find more
>>information here.
>>If not us, who? If not now, when? 
>>- Slogan by
>>Czech University Students in Prague, Nov. 1989.
>>Quoted in: Observer (London, 26 Nov. 1989).
>Wayne McGuire

Paul Andrew Mitchell, Sui Juris      : Counselor at Law, federal witness 01
B.A.: Political Science, UCLA;   M.S.: Public Administration, U.C.Irvine 02
tel:     (520) 320-1514: machine; fax: (520) 320-1256: 24-hour/day-night 03
email:   [address in tool bar]       : using Eudora Pro 3.0.3 on 586 CPU 04
website: http://supremelaw.com       : visit the Supreme Law Library now 05
ship to: c/o 2509 N. Campbell, #1776 : this is free speech,  at its best 06
             Tucson, Arizona state   : state zone,  not the federal zone 07
             Postal Zone 85719/tdc   : USPS delays first class  w/o this 08
_____________________________________: Law is authority in written words 09
As agents of the Most High, we came here to establish justice.  We shall 10
not leave, until our mission is accomplished and justice reigns eternal. 11
======================================================================== 12
[This text formatted on-screen in Courier 11, non-proportional spacing.] 13


Return to Table of Contents for

Supreme Law School:   E-mail