Corporate Espionage Detailed in Documents

Nick Nichols, Dezenhall's former partner, was traveling and unavailable, an associate said recently. In his book "Rules for Corporate Warfare," Nichols wrote that he hired former law enforcement officials to investigate when clients were "the target of shakedown artists and other lowlifes. And, we're proud of it."

'It's a Little Scary'

In 1997, at a community center in Montgomery County, activists held meetings to discuss Hebrew Home. The group, made up largely of residents' relatives, alleged poor medication controls and rough treatment of residents. As they strategized, an undercover operative was paying close attention.

Her reports -- along with meeting agendas, license plate numbers and descriptions of advocates -- were relayed to Hebrew Home officials, the records show.

"It's a little scary they were doing this," said Henshaw, whose father lived in the home in 1997.

Over a year, the nursing home paid BBI about $50,000 for investigative work, according to invoices addressed to chief executive Warren Slavin, who still directs the home.

Hebrew Home said in a statement that it hired BBI on a recommendation from its public relations consultant because the activists were "threatening staff, interfering with care, and putting the health and well-being of our elderly residents at risk."

"We are not aware of anyone on behalf of Hebrew Home having approved or directed, nor would we condone, any unethical activity that may have been undertaken by Beckett Brown," the facility said.

In an interview, the operative identified in the documents, Madeline "Maddie" Cole, denied that she had worked for BBI. She said she attended activists' meetings about Hebrew Home but did not recall whether she had relayed information to anyone else.

Hebrew Home made changes after state health officials found deficiencies, but Henshaw said she is certain her group would have been more effective if it had not been compromised.

Getting to the 'Inner Circle'

In 1998, at the urging of Nichols-Dezenhall, chemical company Condea Vista hired BBI to help with the fallout from an ethylene dichloride spill in Louisiana, Peter Markey, who oversaw public affairs for Condea Vista, said in sworn testimony. Thousands of workers said they were sickened in one of the largest spills in U.S. history.

Markey said in a videotaped deposition last year that he, the company's president and its general counsel were aware that BBI was sifting through trash and infiltrating meetings but did not question the practices.

Contacted recently, Sasol North America, which bought Condea Vista in 2001, said it could not comment on events that took place before it acquired the company.