Premier Election Solutions

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Premier Election Solutions, formerly named Diebold Election Systems, Inc. (DESI), is a major US elections vendor. Founded as Global Election Systems (GES), they were acquired by Diebold Inc., a banking and security corporation, in 2002. Bad press led Diebold to change the name of its election division to Premier, and eventually sell it to ES&S. However, the Justice Department recognized this as a monopoly and forced ES&S to sell Premier in 2010; it was acquired by Dominion.

History

Global begins in Canada

In 1983, Clinton H. Rickards founded North American Professional Technologies (NAPT), a Canadian technology company. One of NAPT's first projects, begun in 1986, was developing an electronic voting system. They partnered with Unisys Corporation in the US, which acquired a patent for a voting system based on Business Records Corporation's MTB-2 optical scanner. NAPT's new voting system came to be called the ES-200. Development was expensive, forcing NAPT to seek funds from Macrotrends International Ventures Inc., a venture capital firm based in Vancouver. By 1989, when the ES-200 was completed, NAPT had become a subsidiary of Macrotrends.

Unisys began marketing the ES-200 that same year. In the spring of 1990, Anoka County MN purchased the ES-200 for use in its primary and general elections. By that time, Unisys had started selling the ES-200 under the name AccuVote. NAPT's relationship with Unisys soon came to an end, however. In late 1991, NAPT merged with Macrotrends to form Global Election Systems. Global bought the rights to the patent Unisys had owned and got into the elections industry on its own. The programming office was in Vancouver, while the executive offices and manufacturing body were headquartered in McKinney TX.[1]

Getting funding from Macrotrends may have kept NAPT afloat, but it put them under the influence of some very unsavory folks. Multiple Macrotrends executives were engaged in financial crimes during the early years of NAPT/Global.

Norton Cooper, who marketed Macrotrends and its companies, had been jailed in 1974 for defrauding the Canadian government. During the 1980s, he sold so many fraudulent stock deals through Macrotrends that the Vancouver Stock Exchange (VSE) ordered Macrotrends to fire him in 1989. Cooper's stock fraud led to Forbes labeling the VSE as the "Scam Capital of the World".

Charles Hong Lee, a director of Macrotrends and NAPT, was a childhood friend of Cooper and was involved in some of his fraudulent ventures. When he and Cooper were sued in 1989 by investors in a Macrotrends venture, Lee failed to answer the lawsuit. He was ultimately ordered to pay over $500,000 in restitution.

In 1994, Lee defrauded Chinese immigrants out of more than $600,000 along with his business partner Michael K. Graye. Michael K. Graye, from 1987 to 1991, stole up to $18 million from four corporations, and was arrested in 1996 for tax fraud and money laundering. To make bail, a Hong Kong shell company sold "real estate" and got $300,000 from investors. Graye was simultaneously indicted on stock fraud charges for Vinex Wines, a US company he ran with Lee.

All three of these criminals played a pivotal role in running NAPT/Global in its early years. During that period, some of the core staff such as Talbot Iredale were hired. Lee and Graye were part of Global Election Systems for a short time after its 1991 founding, serving on the board of directors, but left within a couple years.[2]

Bob Urosevich and I-Mark

Bob Urosevich, founder and CEO of American Information Systems (the precursor to ES&S), left the company in late 1993. He founded a new voting machine company, I-Mark Systems, in 1995. I-Mark's goal was developing a touchscreen voting machine, which could eventually be deployed as a kiosk in public places (e.g. shopping malls) to supplant the need for polling places. Their machine became known as the Electronic Ballot Station (EBS). Its initial prototype was a standard PC running Windows 95, and it was certified by Kansas in mid-1997. After that, a second version (the EBS model 100) based on an embedded system was built, which got certified by Kentucky in the fall of 1997. It included a smart-card reader to authenticate voters.[1]

Rising in the elections industry

Throughout the 1990s[3] and early 2000s[4], Global Election Systems vastly grew its presence in the US elections industry. By the turn of the 21st century, their voting systems were in use in hundreds of jurisdictions across dozens of states.

In 1991, LHS Associates signed on as the New England distributor for Global's products. They began selling the AccuVote OS in 1992. Global's products would come to be adopted throughout Massachusetts, New Hampshire, Vermont, Connecticut, and Maine, with LHS in charge of the memory card programming.

[Something about Fidlar/GBS]

Many of Global's senior managers in the 1990s came from corporate predecessors of ES&S. Two of them, Howard Van Pelt and Larry Ensminger, had played key roles in founding and managing Computer Election Systems[5], which in 1985 became part of BRC. Bob Urosevich's company I-Mark was acquired by Global in 1997. The touchscreen that I-Mark had developed was marketed by Global as the AccuTouch, later renamed the AccuVote TSx. Urosevich became a director and key executive at Global, attaining the role of president and COO by 2000.[1] Van Pelt and Ensminger left the company during that period to lead Shoup Voting Solutions.[6]

[Coming to King County WA in 1998, relationship with Spectrum, buying the company][7][8]

Global's optical scanners were used during the 2000 Florida election in dozens of counties. Two of these counties, Volusia and Brevard, saw Al Gore receive negative votes from certain precincts. His vote totals noticeably dropped on live TV before being corrected. Volusia County contacted Global about the vote miscount, which was confirmed by Global employees to have been the result of an intentionally-modified memory card, rather than a glitch as reported by the media. The Volusia County tampering and similar issues in Brevard County indicated an electronic vote rigging effort in favor of George W. Bush. No further inquiry was done to ascertain how prevalent this tampering was, leaving the possibility of numerous smaller vote modifications across the state that went unnoticed. Neither the county officials nor Global Election Systems professed to know the source of the apparent election rigging attempt.

Diebold acquires Global

On June 21, 2001, Diebold Inc. (an Ohio-based banking and security corporation) announced its signature of a letter-of-intent to acquire Global Election Systems. As part of the agreement, Diebold provided $5 million in immediate financing to Global (rescuing it from insolvency[9]) and took over the manufacturing of over 500 touchscreens for a contract Global held.[10]

The timing of Diebold's letter-of-intent was considered curious by Bev Harris. She noted that only the day before, on June 20, 2001, Global announced by email its plan to add fractional vote counts to GEMS. This new feature was likely supervised by Jeffrey Dean, who served as vice president of research and development. Dean had previously devised another GEMS feature intended for election fraud, and the fractional vote counts appeared to be in a similar vein. Harris suggested that Diebold might have agreed to prop up Global financially in return for them adding a feature (like vote fractionalization) to facilitate large-scale election fraud. This financial boost would have been particular crucial to Dean, who owed hundreds of thousands of dollars in restitution to CG&G.

Diebold completed its acquisition (worth $26 million in cash and stock) on January 23, 2002.[11] The company was renamed to Diebold Election Systems, Inc. (DESI). Following the acquisition, Jeffrey Dean left his official roles at Global and became a consultant reporting to Pat Green (a Diebold employee from the ATM division assigned to oversee R&D for the election systems division).[12]

Procurement lobbying

There's no sign that Global or DESI lobbied for the Help America Vote Act in 2001 or 2002. HAVA sponsor Bob Ney claimed in his book that David DiStefano attempted to lobby him on behalf of Diebold Inc. (the Ohio corporation, not the voting machine subsidiary), but denied taking any action to benefit the company. Most of Diebold Election Systems' lobbying work was focused on influencing county and state officials to adopt Diebold voting machines after the passage of HAVA.

[Role in lobbying Cathy Cox to adopt Diebold systems and paying her off to accept the illegal patches][13]

[SAIC conflict of interest in Maryland with lobbyist Gilbert Genn][14][15]

[Diebold's lobbying dealings with the National Federation for the Blind (NFB)][16]

[Questionable lobbying payments to the ACG Group to lobby in Ohio][17][18]

[Paying Greenberg Traurig (Abramoff's firm) in 2003/2004 to lobby for NY procurement; also, what is Accenture being paid for?][19][20][21][22]

Ethics and PR disasters

[23]

Name-change and sale to ES&S

[24]

Forced divestment to Dominion

Products

Optical scanners

DRE machines

Election management systems

Absentee ballot processing

Subsidiaries

Employees

Board of directors

Executives

Programmers

Technicians

Controversies

Criminal employees

[Financial crooks from Vancouver, Jeffrey Dean and John Elder's roles, Talbot Iredale deliberately avoiding certification for 2002 Georgia election, Ken Clark (?) expressing willingness to break the rules, Sophia Lee exfiltrating a live election database, etc.]

Leaked files

[Global files left on open FTP server, emails leaked to Bev Harris, etc.]

Uncertified patches

[Illegal patches in the 2002 Georgia election, the use of uncertified software as revealed by Stephen Heller, Washington state not using real NASED numbers, etc.]

Security issues

[Avi Rubin review in 2003, numerous academic studies, Hursti hack, etc.]

Voting machine miscounts

[2000 Florida fraud, opscan issues in the 2004 Florida election, etc.]

Lobbying relationships

Suspect elections

2000 Florida general

Main article: 2000 Florida general election

In Volusia and Brevard County, both of which used the AccuVote OS, Al Gore received negative votes from uploaded precincts. This blatant vote miscount was shown to be the result of intentional memory card tampering in Volusia County, and it was likely the same reason in Brevard as well. While these two egregious cases of negative votes were caught on election night and fixed, the existence of a multi-county vote rigging effort against Gore suggests that hundreds of smaller electronic vote manipulations could have taken place across the state of Florida. Both county officials and the vendor claimed ignorance of what happened, even though the culprit was almost certainly one of those two.

2002 Georgia

Main article: 2002 Georgia general election

Diebold Election Systems received a contract from Georgia to install touchscreen voting machines in advance of the 2002 election. As a result, the entire election process was essentially privatized and conducted under the purview of Diebold. Multiple whistleblowers confirmed the installation of illegal software patches shortly before the primary and general elections, some of which oddly came directly from Diebold president Bob Urosevich. Georgia experienced multiple shocking Republican upsets in the 2002 election, most notably by Senate candidate Saxby Chambliss and gubernatorial candidate Sonny Perdue, and Cynthia McKinney was ousted from her congressional district in the 2002 Democratic primary.

2004 Florida general

Florida's AccuVote optical scanners once again showed signs of manipulation in the 2004 election. Volusia County election officials attempted to throw away and obstruct access to their precinct poll tapes, which showed irregularities indicative of memory card tampering. Optical scanners in Brevard and Leon counties exhibited multiple failures on election day, a further indication of manipulated code on the memory cards. Just as in 2000, there appeared to be a multi-county effort to rig optical scan results using the memory cards. Whether the county officials were the perpetrators or simply covering up for someone else (such as the vendor) is unknown.

2008 New Hampshire primary

Main article: 2008 New Hampshire primary

In a shocking disparity with both pre-election and exit polls, Hillary Clinton upset Barack Obama to win the 2008 New Hampshire primary. New Hampshire towns used a mixture of hand-counting, the gold standard of election accuracy, and AccuVote OS machines, programmed by the suspicious Diebold subcontractor LHS Associates. Statistical analysis revealed cause for concern with the integrity of the results: Clinton did better in machine counts than hand counts, even controlling for demographic factors. And an ensuing recount was evidently manipulated, indicating that New Hampshire election officials did not want to risk exposing electronic vote fraud.

Political connections

Pacific Northwest

  • Vancouver organized crime
  • Seattle political elite

National level


  • CIA? (based on Krogh as a possible CIA asset and John Elder's cocaine trafficking)

Corporate connections



References

  1. 1.0 1.1 1.2 Broken Ballots by Douglas W. Jones and Barbara Simons (quoted on the Verified Voting pages for the AccuVote OS and AccuVote TSx)
  2. Bev Harris, Black Box Voting, p.81-84
  3. Global news releases from late 1990s
  4. Global news releases from early 2000s
  5. Global company history page
  6. Lynn Landes, "RAW NOTES: VOTING SYSTEMS ORGS AND COMPANIES": DIEBOLD ELECTION SYSTEMS, INC
  7. Washington Secretary of State, "REPORT OF THE SECRETARY OF STATE ON THE EXAMINATION AND EVALUATION OF MODIFICATIONS TO AN OPTICAL SCAN ELECTRONIC VOTE TALLYING SYSTEM", 1998/09/14 - SoS Ralph Munro and King County WA approved the AccuVote OS in 1998
  8. Global Election Systems, press release on its intent to acquire Spectrum Ltd, 2000/08/10
  9. There are a couple internal emails from Global Election Systems employees revealing how the company was fraught with dysfunction

    Brian Clubb, "Resignation", 2001/10/05
    For the past three years I have worked for Spectrum then Global. Over that time I have become increasingly concerned about the apparent lack of concern over the practice of writing contracts to provide products and services which do not exist and then attempting to build these items on an unreasonable timetable with no written plan, little to no time for testing, and minimal resources. It also seems to be an accepted practice to exaggerate our progress and functionality to our customers and ourselves then make excuses at delivery time when these products and services do not meet expectations. The pressure to meet these deadlines and deal with repeated calls from sales staff and customers trying to ascertain actual progress versus exaggerated reports has become intolerable. The resulting stress has had a very negative effect on me both mentally and physically.

    As internal politics and mismanagement continue to divert attention and resources away from these issues, the problems become further and further entrenched. Since the acquisition of Spectrum by Global, none of the personal or workplace benefits which the employees of Spectrum were promised have yet been realized.

    This, in addition to the above issues, leads me to conclude that management is not concerned for the employees. Either they do not value the contributions of the employees, or are incapable of fulfilling these promises. Thus, seeing no end to this troubling situation, I find no other option but to end my employment with the company effective immediately.


    Mike Brown, "Fw: Battery Status & Charging---and too much bull!!", 2001/10/20
    It does not matter whether we get anything certified or not, if we can't even get the foundation of Global stable. This company is a mess! We should stop development on all new, and old products and concentrate on making them stable instead of showing vaporware. Selling a new account will only load more crap on an already over burdened entity.

    Everyone is waiting for Diebold to come and save us. What do you think Diebold will say when they see what a mess everything is, or more to the point what Global has not shown them, or maybe it will not matter at that time, hmmm...

    Every time I look at the support list there is another sales person or manager screaming we can't go forward without having to fix this or to fix that. You are taxing the development team beyond what they can handle. This is not there problem, it is yours.

    Elections are not rocket science. Why is it so hard to get things right! I have never been at any other company that has been so miss managed. I see blame being put on anything that moves. Communication does not exist! All I here from upper management is “That’s fine, he or she will be removed”. Upper management seems to think they know what is going on. They are to caught up in to much politics, and to much self importance, to even realize that there are employees watching them, waiting for some direction... We have allot of bright people in Global, why is it so hard to get things right....

    I just received a call from Ingrid, she says she is tired of getting calls from clients asking for help. No one at Global is giving them the time of day. Ingrid is the only name I will use in this conversation. I have had calls from other ex-employees stating the same thing.

    We have a management team that is so redundant, it is pathetic, and yet we don't have enough employees to get the work done. Wake up! We keep loosing good people, and yet management does not see this, or more to the point, “just keep everything going, Diebold is coming and everything will be fine”. Bull!!

    My views are my views only. If you wish to fire me for speaking the truth, bring it on... or fix this crap. The employees of this company are watching, waiting to see if you are the leaders that will keep them going, or the pathetic fools that will drive this company into the ground. I believe Global has great products, great ideas, great people, just get things right and we will be the best.


    Mike Brown, "Letter of Resignation", 2001/12/17
    This will confirm my resignation as a Support Specialist.

    My experience with Global Election Systems has been very rewarding. I appreciate having had the opportunity to work with some really great people. I realize my leaving will have an effect on Global, and I apologize for this. I would like to thank the Management team in McKinney for helping me make this difficult decision.

    Please feel free to contact me at any time should you have any questions regarding my past work. I hope that the transition will go smoothly for everyone.

    I feel that over the next year, if the current management team stays in place, the Global working environment will continue to be a chaotic mess. Global management has and will be doing the best to keep their jobs at the expense of employees. Unrealistic goals will be placed on current employees, they will fail to achieve them. If Diebold wants to keep things the same for the time being, this will only compound an already dysfunctional company. Due to the lack of leadership, vision, and self-preserving nature of the current management, the future growth of this company will continue to stagnate until change comes.
  10. Diebold Inc, "Diebold to Acquire Leading Voting Technology Company, Global Election Systems", 2001/06/21
  11. ATM Marketplace, "Diebold completes acquisition of Global Election Systems", 2002/01/23
  12. Steve Moreland, "Printed Products General Manager", 2002/02/04: "Jeff Dean has elected to maintain his affiliation with the company in a consulting role, reporting to Pat Green. The Diebold Election Division management team greatly values Jeff's contribution to this business and is looking forward to his continued expertise in this market place."
  13. Robert F. Kennedy Jr., "Will The Next Election Be Hacked?", 2006/09/21 (pages 2) - allegations of an unfair bidding process for the 2002 Georgia election
  14. Baltimore Sun, "Ethics panel to scrutinize Md. lobbyist", 2003/09/26 - controversy over Maryland lobbyist for Diebold and SAIC
  15. Science Applications International Corporation, "Risk Assessment Report: Diebold AccuVote-TS Voting System and Processes", 2003/09/02
  16. BBV forum post on Diebold, National Federation of the Blind (NFB), and Ohio
  17. BBV forum post on Juan Andrade, ACG Group, and other Diebold lobbyists
  18. BBV forum post on questionable lobbying finances by Diebold
  19. New York Times, "Vote Machine Replacement Lags, Despite Age", 2003/10/20 - article about HAVA upgrade lobbying
  20. Common Cause chart of vendor payments in NY
  21. North County Public Radio, "Common Cause/NY Tallies Lobby Spending of Voting Vendors as NYS Continues to Debate HAVA Implementation", 2004/12/20 - article about Common Cause compiling lobbying data
  22. 2004 Diebold payments to lobbyists and companies
  23. Wired, "How E-Voting Threatens Democracy", 2004/03/29 - covers the early story of Bev Harris getting involved with e-voting activism
  24. Bev Harris, "ES&S buyout: The Diebold "Special Persons" List", 2010/02/25 (BBV forum post): "In the ES&S acquisition contract for Diebold's Premier Election Systems, the following short list of employees are given special treatment. [...] In the event that any employee on list is terminated, for any reason -- EVER, because there is no time limit on this -- then ES&S has to notify Diebold in advance, in writing; and in the event that any employee on the list quits -- EVER, because there is no time limit on this -- then ES&S has to notify Diebold immediately to allow Diebold to put the employee on retainer. So these guys need to be on a short leash. In other words, they know stuff. [...] Some of these guys seem to be techs that handled some Ohio work." - includes Kathy Rogers

External links

  • Dockets for the 1998-99 Election Systems, et al v. I-Mark Systems, et al
  • "MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS; BREVARD COUNTY, FLORIDA; May 24, 1999" - mentions the early involvement of Unisys before they left the business, the subsequent formation of Global Election Systems, and the numerous clients of theirs: 11 in Florida, the oldest being Leon County who bought the AccuVote from Unisys in 1990, and their largest client to date King County WA
  • November 2000 discussion on Silicon Investor about Global stocks
  • Press conference on 2003/12/16 with Bev Harris and Andy Stephenson
  • Black Box Voting press release of documents about financial criminals involved with Global
    • Vancouver Sun, "Ex-Vignoble boss committed to trial: Businessman who borrowed money for his bail from disgraced Eron Mortgage Corp. facing fraud charges", 2000/05/20
      • "Martin Chambers is not a 'suspended lawyer' as previously reported. In December 1981, after Chambers was charged with conspiracy to import cocaine, the B.C. Law Society told him it would suspend him. At that point, Chambers offered to surrender his practice certificate, which the law society accepted. He remained a non- practising member of the law society until January 1984, when he voluntarily ceased to be a member as a result of failing to pay his practising fees. In 1990, the criminal charge against Chambers was stayed by the Crown. As of May 31, 2000 he had not reapplied for membership in the B.C. Law Society. / unp. corr. per D. Baines 20000531"
      • "To get him [Michael K. Graye, one of Global's early board members] out of jail, Eron president Brian Slobogian -- at the request of suspended Vancouver lawyer Martin Chambers -- lent him $300,000."
  • Mafia penny stock fraud involving Michael K. Graye
    • Street Wire, "BCSC Eron player Graye busy juggling lawyers" by Brent Mudry, 2001/10/31
      • "In a sealed complaint dated Oct. 1 in the Southern District of New York, Mr. Graye and New York promoter Roger DeTrano are alleged to have conspired to manipulate the shares of Mr. Graye's Vinex Wines Inc. through a series of secretive offshore accounts in the British Virgin Islands and the Philippines, between January, 2000, and this July. Both men remain presumed innocent until proven guilty.

        (In separate criminal cases, not involving Mr. Graye, Union Securities' big producer, Mr. Koenig, and Mr. DeTrano, the New York penny stock promoter, are named as key players in the New York Mafia-linked WAMEX Holdings Inc. rig job, a promotion which used the Vancouver money laundering account of Itex Corp. fraud mastermind Terry Neal's Nevis-based Exchange Bank & Trust.)"
      • "Mr. Graye's Vinex criminal case must surely come as a shock to both his New York Vinex lawyer, Stanley "Stan" Moskowitz, and his loyal Vinex sidekick Charles Hong Lee. (Recent securities filings show Mr. Graye as the president of Vinex and Mr. Lee as vice-president.) Neither Mr. Moskowitz nor Mr. Lee are named in the Vinex criminal case.

        Mr. Lee and Mr. Graye go back quite a ways together on Howe Street, the centre of dealings on the former Vancouver Stock Exchange, dubbed Scam Capital of the World by writer Joe Queenan in Forbes magazine a decade ago. From about 1985 through 1993, Mr. Lee was close by Mr. Graye's side in a number of Howe Street promotions. Both Mr. Graye and Mr. Lee served assorted concurrent roles with Concert Industries Ltd., Global Election Systems Inc., Ican Resources Ltd., Macrotrends International Ventures Inc. and Nanotec Canada Inc. in the mid-1980s and early 1990s, but the pair have kept lower profiles since."
      • "Mr. Moskowitz's star Howe Street client, at least until Mr. Graye came along, was self-confessed securities violator Larry Kostiuk.

        [...]

        Mr. Kostiuk, who served a few years as a rural RCMP officer before embarking on a 30-year career as a Vancouver penny stock promoter, pleaded guilty in November, 1996, to six violations of the Securities Act for false statements, misrepresentations and irregularities in his dealings with Evergreen International Technology, his former flagship on the former Vancouver Stock Exchange.

        [...]

        Other notable past close associates of Mr. Kostiuk include Mafia-linked penny stock players Joe Garofalo and the late Ramon Donofrio."
    • Street Wire, "CIBC faces intriguing suit from SEC poster-boy Bensberg" by Brent Mudry, 2002/05/06
      • "Mr. [Paul] Deyong is no stranger to Howe Street, having had the misfortune of appearing in the 1991 promotion of Marlat Resources on the former Vancouver Stock Exchange, a promotion which also featured controversial Vancouver lawyer Martin Chambers and promoter Robert Bozo Lalich. Other Marlat players included promoter Bram Solloway, who was a player in career fraudster Michael MITTON's H & R Enterprises fiasco in 1996 and was more recently involved in a company promoted by Wally Dekanich, the small-time stock promoter shot dead early last year by alleged underworld hit man Mickie Phillip Smith.

        Mr. Chambers is perhaps Mr. Deyong's most intriguing finance client. The year before Marlat, Mr. Chambers ended a nine-year ordeal fighting charges he was the key player in a conspiracy to import cocaine from Miami to Vancouver. Mr. Chambers was charged in 1981, acquitted in 1983, ordered retried by the Supreme Court of Canada, convicted in a second trial in 1987 and sentenced to nine years. In 1990, the Supreme Court of Canada ordered a third trial, but the Crown folded and finally stayed the charges.

        Other notable clients of Mr. Deyong include former Hells Angels leader Ernie Ozolins, executed in June of 1997, Vancouver offshore accountant Michael K. Graye, now in jail in New York in a mob-related penny stock case, Harris McLean Financial Group, the now-insolvent Cayman Islands-based offshore financier of numerous Howe Street deals and a fellow called N. Newsom, presumably Norm Newsom, a key member of a Howe Street family well known to regulators. All in all, Mr. Bensberg was hardly DML's most controversial client."
    • Street Wire, "BCSC Eron figure Graye pled guilty in New York, again soon" by Brent Mudry, 2002/05/21
      • "Controversial offshore Vancouver accountant Michael K. Graye has quietly pled guilty to a Mafia-linked penny stock manipulation in New York and is expected to plead guilty soon in an unrelated case in Toronto, where he will emerge as the star Crown witness against his co-defendant, Toronto lawyer Thomas Baker, in the $18-million Seven-Up Canada offshore tax fraud and money laundering case, which dates back to 1987."
      • "Mr. Graye has been in custody since his arrest Oct. 4 at Buffalo Niagara International Airport on a sealed United States criminal complaint, just after arriving in New York from Canada. The accountant, who boasts of an address in the secretive offshore haven of Monaco, has been denied bail. Co-accused Roger DeTrano, a New York penny stock promoter, was nabbed the day earlier. The pair were snared in sting featuring career fraudster and Mafia associate Ed Durante. Vancouver broker Trevor Koenig of Union Securities, snared in a parallel but separate Durante sting, pled guilty in late February.

        In the U.S. case, Mr. Graye and Mr. DeTrano were snared in a similar sting to that of Vancouver penny stock broker Trevor Koenig of Union Securities, who has been in custody since his arrest on the Labour Day weekend at the border near Vancouver. U.S. authorities claim Mr. Graye and Mr. DeTrano conspired to manipulate the shares of Mr. Graye's Vinex Wines Inc. through a series of secretive offshore accounts in the British Virgin Islands and the Philippines, between January, 2000, and last July.

        As FBI agents listened in, thanks to a body-wired co-operating witness, Mr. Graye bragged that his Vinex shares would be registered in the "abyss" to a "BVI corporation." He also boasted that the employees at the BVI company "had been doing this for a long time" and when contacted by anyone asking about him, they "would say that they did not know Michael Graye.""
      • "The Crown alleges Mr. Baker and Mr. Graye effectively looted $18-million in a bust-out of four companies they took over in controversial leveraged buyouts in 1987 and 1988: Seven-Up Canada, Agnew Shoes and Pathfinder International, all in Vancouver, and Vancouver Wharves in North Vancouver. Canadian authorities claim Mr. Graye and Mr. Baker siphoned off $18-million from the companies through an offshore account, Mogul Holdings in the Cayman Islands, laundered the money back into Canada, embarked on a big spending spree including ski chalets at Whistler, sports cars and mansions in Toronto, and repeatedly forgot to tell the tax man about it.

        After an extensive investigation, Mr. Graye was arrested in December, 1996, in Vancouver by members of the RCMP Commercial Crime Section and promptly whisked off to Toronto for his first court appearance before being released on $1-million bail. Controversial former Vancouver lawyer Martin Chambers is credited with being instrumental in persuading Eron Mortgage head and master fraudster Brian Slobogian to loan Mr. Graye $300,000 of Eron investors' funds to help spring the accountant, a heavy Eron borrower. (Although extensive testimony during the British Columbia Securities Commission's hearing into the $150-million Eron scandal detailed Mr. Chambers's Eron dealings, including his frequent use of an office within Eron's offices, his lawyer David Lunny vigorously protests the linking of his fine client to the Eron affair.)"
    • Street Wire, "TSX-V member Union's Koenig coming home soon" by Brent Mudry, 2003/01/23
      • "Trevor Koenig, once one of Howe Street's best producers, will be coming home soon. The convicted penny stock broker, who ran a White Rock satellite branch for Vancouver brokerage Union Securities, was sentenced Thursday in New York to 22 months imprisonment and payment of $885,000 in restitution to victims of WAMEX Holdings Inc., the rig job featuring his New York Mafia-linked star client Ed Durante, who used offshore accounts to rig the stock. (All figures are in U.S. dollars.)"
      • "In the biggest known Mafia incursion into the Canadian securities industry in recent years, in June, 2000, Union Securities emerged as a major conduit in what U.S. authorities called the largest stock fraud case in U.S. history, an overall case involving more than 100 defendants, including at least 11 members and associates of five different organized crime families. Trading in shares of WAMEX was abruptly halted by the SEC, in conjunction with the predawn arrests of Mr. Cushing and Mr. Chimenti at their homes in the New York area. WAMEX shares last traded a $1.62 just before the raid, down from a peak of $22.50 that February.

        In April, 2000, two months before WAMEX promoter Mr. Durante was snared in the FBI sweep, the BCSC, at the request of the SEC, abruptly froze an $18-million offshore bank account at the main downtown Vancouver branch of Bank of Montreal, belonging to Terry Neal's Exchange Bank and Trust. The regulators hit a gold mine. The SEC was chasing eConnect tout Stephen Sayre, a moonlighting tree trimmer, and within weeks, BCSC investigators linked EBT to a number of securities violators, notably Mr. Durante, who used the account as a money laundering conduit for proceeds of dubious stock trading through a series of Vancouver brokerages.

        Despite the account freeze, the FBI arrests and mounting securities regulations, Mr. Koenig continued doing business with Mr. Durante, who had rolled over and agreed to rat on his associates as a federal informant. In the fall of 2000, Mr. Koenig, WAMEX promoter Mr. DeTrano and former Vancouver offshore accountant Michael K. Graye were all snared in scripted FBI stings featuring Mr. Durante. The criminal complaints remained sealed until Mr. Koenig was arrested in late August, 2001, and Mr. Graye and Mr. DeTrano were arrested that October. All three subsequently pled out and co-operated."
    • Canada StockWatch, "SEC bans WAMEX, Absolutefuture promoter DeTrano forever" by Brent Mudry, 2003/12/30
      • "The United States Securities and Exchange Commission has banned convicted New York penny stock promoter Roger DeTrano from the penny stock market for life for his role in manipulating two stocks through offshore accounts at Vancouver brokerage Union Securities. In a recent administrative decision, the SEC rejected the pleas of leniency from Mr. DeTrano, an associate of the alleged Mafia-linked promoter Edward Durante."
      • "Mr. DeTrano faced three separate criminal cases relating to WAMEX and Absolutefuture.

        In the first, he was charged in June, 2000, as part of Operation Uptick, the FBI's biggest assault on Mafia-linked stock promotions, which targeted a total of 120 defendants, including 10 members and associates of the five La Cosa Nostra, or Mafia, families in New York. Mr. DeTrano's indictment noted millions of shares of WAMEX were sold through Vancouver brokerage Union Securities, an innocent conduit. Court records show Mr. Durante later told authorities he made $24-million in WAMEX profits with the help of Mr. DeTrano.

        In the second and third cases, unsealed in October, 2001, Mr. DeTrano was charged with securities fraud relating to Absolutefuture and Vinex Wines before and after Operation Uptick. In the wake of Uptick, Mr. Durante flipped, pled guilty on Dec. 7, 2001, and became a star federal operative, helping lure Mr. DeTrano and others, including Union broker Trevor Koenig and former Vancouver offshore accountant Michael K. Graye, in scripted stings orchestrated by FBI agents."
    • The criminal investigation that ensnared Graye was part of a massive federal investigation into stock fraud involving all of the major Mafia families in New York City. As Daniel Hopsicker notes in "From Barry Seal to Donald Trump", 2019/06/05, one of the people indicted was Leslie Greyling, a fraudster linked to Adnan Khashoggi and Donald Trump who is detailed on the F. Lee Bailey page as being involved in a takeover of Rum Cay in the Bahamas for drug trafficking.
  • Alleged connection of Norton Cooper to Wndalco / Windalco owned by Oleg Deripaska
    • Tweet by Jennifer Cohn on 2017/09/29: "U can look for yourself: last name cooper. Wndalco - how it's spelled on LinkedIn. I'm afraid"]
    • Tweet by Jennifer Cohn on 2018/05/06: "Did I say “mob”? Yes I did. Google “Michael K. Graye” and “mob”. And as I’ve reported before, Graye’s colleague at Global (Diebold predecessor) now works for Wndalco aka Windalco owned by Oleg-ay Deripaska-ay."
  • SEC records for Global
  • DU discussion about Global's history - discusses the tendency of corporate executives to "hire in their own image"; introduces some weird financial transactions by Global that might reveal details about their alleged (in 2016 by Bev Harris) insolvency
  • Notable Global/Diebold emails (aka "Diebold memos")
  • DU discussion about memos that show Diebold doing "end-runs" around the certification process
  • DU thread on SAIC, electronic voting, Diebold, and the CFR - shows that weirdly, both Bob Urosevich (of Global) and Tom Swidarski (of Diebold Inc.) were credited as DESI's president during the same time period
  • Bev Harris, "Georgia/Diebold Voting Machine Investigation IVs", 2003/02/17 - interviews with vendors and election privatizers
  • Jim March, "The Mechanics Of Election Fraud: Means, Motive, Opportunity", 2004/09/13 - theory about insider trading of election results
  • VotersUnite, "Diebold in the News — A Partial List of Documented Failures" - list of documented Diebold failures
  • BBV's acquisition of 100 pages of Diebold documents (also discusses whether the fraud is from local fixers, national criminals, or both)
  • Bev Harris, "BBV: Results of investigations so far (new material)", 2004/07/14
  • Microsoft Access backdoor
  • San Luis Obispo database exfiltration
  • DU thread started late 2003 in which users criticize the SAIC report as a whitewash
  • DU thread from 2005 on corrupt North Carolina politicians allowing Diebold voting machines to be adopted
  • From p.132 of Brave New Ballot: The Battle to Safeguard Democracy in the Age of Electronic Voting by Avi Rubin (2006): "Maryland's Linda Lamone, Georgia's Kathy Rogers and Cathy Cox, and California's Mischelle Townsend and Connie McCormick were among the state election officials who consistently blasted computer scientists for our criticism of their beloved touch screens. These people behaved as if they were the vendors whose products were being attacked, when in fact they were customers who had been sold inadequate products."
  • Brad Friedman, "Georgia Election Director Reportedly Takes New Job With Diebold", 2006/12/23: "The Atlanta Journal-Constitution is reporting that Georgia state officials are claiming that Kathy Rogers, the recently resigned Director of outgoing Secretary of State Cathy Cox's State Elections Division, is going to work for Diebold. [...] "Rogers apparently will serve as a liaison between elections officials throughout the United States and Diebold," according to the AJC... [...] But lest we give the Republicans in the state a completely free ride, Handel, GA's incoming Republican SoS who appears to be quite concerned about the apparent conflict of interest, may be well advised to keep her own powder extra dry here. According to AJC... Handel recently appointed Rob Simms as deputy secretary of state, the No. 2 post in the agency. Simms previously worked as a partner for Atlanta lobbyist Massey & Bowers. One of the firm's principals, former Secretary of State Lewis Massey, is the lobbyist for Diebold in Georgia."
  • Augusta Chronicle, "Voting machine maker hires former state election chief", 2006/12/24: "The former director of the state's elections division has accepted a job with Diebold Election Systems, the company that supplied Georgia's $75 million electronic voting machine system. Kathy Rogers was appointed by outgoing Secretary of State Cathy Cox in 2002 and resigned Nov. 30. In her new job, she will serve as a liaison between Diebold and elections officials nationwide. Georgia officials have already expressed concerns about Ms. Rogers' new post, including state election board member Tex McIver, who said he wants the board to discuss Ms. Rogers' job when it meets in January. "I certainly believe this is a serious issue that the SEB needs to look into," Mr. McIver told The Atlanta Journal-Constitution. [...] Ms. Rogers has been a staunch defender of Diebold's equipment, which has been criticized as easy to hack."
  • Cleveland Plain Dealer, "Judge reveals new schemes involving Dimora as prosecutors seek to bolster their case", 2012/01/06: "The schemes include allegations of [Jimmy] Dimora soliciting and accepting favors from one-time lobbyist Pat Gallina in exchange for his help in doling out public contracts, as well as accepting gifts from banished Ohio State booster Robert DiGeronimo, according to a filing Wednesday by U.S. District Judge Sara Lioi. [...] Gallina had once served as a lobbyist for Diebold, which has manufactured voting machines that were purchased by Cuyahoga County."
  • Bev Harris, ""Man in the Middle" Attacks to Subvert the Vote", 2008 - discusses MITM attacks and suspicious election middlemen; mentions Governmental Business Systems in Illinois and LEDS in Colorado run by John Paulsen
  • PR, opposition research, and disinformation tactics
  • Raw Story, "HBO film takes on electronic voting just days before election", 2006/11/02 - while dumpster diving at Diebold's office in McKinney TX, found unexplained money owed to them by the Republican Party of Texas' 8th district
  • Ellen Theisen, "Vendors are Undermining the Structure of U.S. Elections", 2008/08/18 - gives examples of local election offices being dependent on the vendors to run their elections; explains that Oklahoma is one of the few states to kick out the vendors