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Leak Severed a Link to Al-Qaeda's Secrets
Firm Says Administration's Handling of Video Ruined Its Spying Efforts

By Joby Warrick
Washington Post Staff Writer
Tuesday, October 9, 2007 2:42 PM

A small private intelligence company that monitors Islamic terrorist groups obtained a new Osama bin Laden video ahead of its official release last month, and around 10 a.m. on Sept. 7, it notified the Bush administration of its secret acquisition. It gave two senior officials access on the condition that the officials not reveal they had it until the al-Qaeda release.

Within 20 minutes, a range of intelligence agencies had begun downloading it from the company's Web site. By midafternoon that day, the video and a transcript of its audio track had been leaked from within the Bush administration to cable television news and broadcast worldwide.

The founder of the company, the SITE Intelligence Group, says this premature disclosure tipped al-Qaeda to a security breach and destroyed a years-long surveillance operation that the company has used to intercept and pass along secret messages, videos and advance warnings of suicide bombings from the terrorist group's communications network.

"Techniques that took years to develop are now ineffective and worthless," said Rita Katz, the firm's 44-year-old founder, who has garnered wide attention by publicizing statements and videos from extremist chat rooms and Web sites, while attracting controversy over the secrecy of SITE's methodology. Her firm provides intelligence about terrorist groups to a wide range of paying clients, including private firms and military and intelligence agencies from the United States and several other countries.

The precise source of the leak remains unknown. Government officials declined to be interviewed about the circumstances on the record, but they did not challenge Katz's version of events. They also said the incident had no effect on U.S. intelligence-gathering efforts and did not diminish the government's ability to anticipate attacks.

While acknowledging that SITE had achieved success, the officials said U.S. agencies have their own sophisticated means of watching al-Qaeda on the Web. "We have individuals in the right places dealing with all these issues, across all 16 intelligence agencies," said Ross Feinstein, spokesman for the Office of the Director of National Intelligence.

But privately, some intelligence officials called the incident regrettable, and one official said SITE had been "tremendously helpful" in ferreting out al-Qaeda secrets over time.

In an off-camera news briefing Tuesday morning, Frances Fragos Townsend, assistant to the president for homeland security and counterterrorism, said the White House has not conducted an investigation of the alleged SITE leak but expected the director of national intelligence (DNI) to do so.

"We are only going to be successful in the war on terror with the help of the American people," Townsend said. " . . . Anytime an individual or a commercial entity cooperates with us, and asks to be protected and doesn't get the protection that they either sought or deserved, that's a cause for concern."

"Frankly, this is going to be an issue for the DNI to look at so that we can understand what, if anything, happened, and how to deal with it to ensure that we fully protect those who cooperate with us," she said. "The DNI and the Intelligence Committee will need to look at who had access to it -- I mean, it's sort of the typical kind of leak investigation that will have to be considered and acted on as appropriately determined by the DNI."

The al-Qaeda video aired on Sept. 7 attracted international attention as the first new video message from the group's leader in three years. In it, a dark-bearded bin Laden urges Americans to convert to Islam and predicts failure for the Bush administration in Iraq and Afghanistan. The video was aired on hundreds of Western news Web sites nearly a full day before its release by a distribution company linked to al-Qaeda.

Computer logs and records reviewed by The Washington Post support SITE's claim that it snatched the video from al-Qaeda days beforehand. Katz requested that the precise date and details of the acquisition not be made public, saying such disclosures could reveal sensitive details about the company's methods.

SITE -- an acronym for the Search for International Terrorist Entities -- was established in 2002 with the stated goal of tracking and exposing terrorist groups, according to the company's Web site. Katz, an Iraqi-born Israeli citizen whose father was executed by Saddam Hussein in the 1960s, has made the investigation of terrorist groups a passionate quest.

"We were able to establish sources that provided us with unique and important information into al-Qaeda's hidden world," Katz said. Her company's income is drawn from subscriber fees and contracts.

Katz said she decided to offer an advance copy of the bin Laden video to the White House without charge so officials there could prepare for its eventual release.

She spoke first with White House counsel Fred F. Fielding, whom she had previously met, and then with Joel Bagnal, deputy assistant to the president for homeland security. Both expressed interest in obtaining a copy, and Bagnal suggested that she send a copy to Michael Leiter, who holds the No. 2 job at the National Counterterrorism Center.

Administration and intelligence officials would not comment on whether they had obtained the video separately. Katz said Fielding and Bagnal made it clear to her that the White House did not possess a copy at the time she offered hers.

Around 10 a.m. on Sept. 7, Katz sent both Leiter and Fielding an e-mail with a link to a private SITE Web page containing the video and an English transcript. "Please understand the necessity for secrecy," Katz wrote in her e-mail. "We ask you not to distribute . . . [as] it could harm our investigations."

Fielding replied with an e-mail expressing gratitude to Katz. "It is you who deserves the thanks," he wrote, according to a copy of the message. There was no record of a response from Leiter or the national intelligence director's office.

Exactly what happened next is unclear. But within minutes of Katz's e-mail to the White House, government-registered computers began downloading the video from SITE's server, according to a log of file transfers. The records show dozens of downloads over the next three hours from computers with addresses registered to defense and intelligence agencies.

By midafternoon, several television news networks reported obtaining copies of the transcript. A copy posted around 3 p.m. on Fox News's Web site referred to SITE and included page markers identical to those used by the group. "This confirms that the U.S. government was responsible for the leak of this document," Katz wrote in an e-mail to Leiter at 5 p.m.

Al-Qaeda supporters, now alerted to the intrusion into their secret network, put up new obstacles that prevented SITE from gaining the kind of access it had obtained in the past, according to Katz.

A small number of private intelligence companies compete with SITE in scouring terrorists' networks for information and messages, and some have questioned the company's motives and methods, including the claim that its access to al-Qaeda's network was unique. One competitor, Ben Venzke, founder of IntelCenter, said he questions SITE's decision -- as described by Katz -- to offer the video to White House policymakers rather than quietly share it with intelligence analysts.

"It is not just about getting the video first," Venzke said. "It is about having the proper methods and procedures in place to make sure that the appropriate intelligence gets to where it needs to go in the intelligence community and elsewhere in order to support ongoing counterterrorism operations."

Staff writer Spencer S. Hsu contributed to this report.

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