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CIFA researchers apparently cast a wide net and had a number of surveillance methods--both secretive and mundane--at their disposal. An internal CIFA PowerPoint slide presentation recently obtained by William Arkin, a former U.S. Army intelligence analyst who writes widely about military affairs, gives some idea how the group operated. The presentation, which Arkin provided to NEWSWEEK, shows that CIFA analysts had access to law-enforcement reports and sensitive military and U.S. intelligence documents. (The group's motto appears at the bottom of each PowerPoint slide: "Counterintelligence 'to the Edge'.") But the organization also gleaned data from "open source Internet monitoring." In other words, they surfed the Web.

That may have been how the Pentagon came to be so interested in a small gathering outside Halliburton. On June 23, 2004, a few days before the Halliburton protest, an ad for the event appeared on houston.indymedia.org, a Web site for lefty Texas activists. "Stop the war profiteers," read the posting. "Bring out the kids, relatives, Dick Cheney, and your favorite corporate pigs at the trough as we will provide food for free."

Four months later, on Oct. 25, the TALON team reported another possible threat to national security. The source: a Miami antiwar Web page. "Website advertises protest planned at local military recruitment facility," the internal report warns. The database entry refers to plans by a south Florida group called the Broward Anti-War Coalition to protest outside a strip-mall recruiting office in Lauderhill, Fla. The TALON entry lists the upcoming protest as a "credible" threat. As it turned out, the entire event consisted of 15 to 20 activists waving a giant bush lied sign. No one was arrested. "It's very interesting that the U.S. military sees a domestic peace group as a threat," says Paul Lefrak, a librarian who organized the protest.

Arkin says a close reading of internal CIFA documents suggests the agency may be expanding its Internet monitoring, and wants to be as surreptitious as possible. CIFA has contracted to buy "identity masking" software that would allow the agency to create phony Web identities and let them appear to be located in foreign countries, according to a copy of the contract with Computer Sciences Corp. (The firm declined to comment.)

Pentagon officials have broadly defended CIFA as a legitimate response to the domestic terror threat. But at the same time, they acknowledge that an internal Pentagon review has found that CIFA's database contained some information that may have violated regulations. The department is not allowed to retain information about U.S. citizens for more than 90 days--unless they are "reasonably believed" to have some link to terrorism, criminal wrongdoing or foreign intelligence. There was information that was "improperly stored," says a Pentagon spokesman who was authorized to talk about the program (but not to give his name). "It was an oversight." In a memo last week, obtained by NEWSWEEK, Deputy Defense Secretary Gordon England ordered CIFA to purge such information from its files--and directed that all Defense Department intelligence personnel receive "refresher training" on department policies.

That's not likely to stop the questions. Last week Democrats on the Senate intelligence committee pushed for an inquiry into CIFA's activities and who it's watching. "This is a significant Pandora's box [Pentagon officials] don't want opened," says Arkin. "What we're looking at is hints of what they're doing." As far as the Pentagon is concerned, that means we've already seen too much.

© 2006

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