http://www.latimes.com/news/printedition/front/la-na-intel17feb17,1,5736391.story?coll=la-headlines-frontpage
By Greg Miller, Los Angeles Times Staff Writer
February 17, 2008
CIA's ambitious post-9/11 spy plan crumbles
'Fox News Sunday'

" Summing up what many considered the fatal flaw of the program, one former high-ranking CIA official said, "They were built on the theory of the 'Field of Dreams': Build them and the targets will come."

Officials said the experience reflected an ongoing struggle at the CIA to adapt to a new environment in espionage. The agency has sought to regroup by designing covers that would provide pretexts for spies to get close to radical Muslim groups, nuclear equipment manufacturers and other high-priority targets.

But current and former officials say progress has been painfully slow, and that the agency's efforts to alter its use of personal and corporate disguises have yet to produce a significant penetration of a terrorist or weapons proliferation network."

ADAPTATION: Rep. Peter Hoekstra, R-Mich., says: “I don’t believe the intelligence community has made the fundamental shift in how it operates to adapt to the different targets that are out there."
The agency spent millions setting up front companies overseas to snag terrorists. Officials now say the bogus firms were ill-conceived and not close enough to Muslim enclaves.

By Greg Miller, Los Angeles Times Staff Writer February 17, 2008

WASHINGTON -- The CIA set up a network of front companies in Europe and elsewhere after the Sept. 11 attacks as part of a constellation of "black stations" for a new generation of spies, according to current and former agency officials.

But after spending hundreds of millions of dollars setting up as many as 12 of the companies, the agency shut down all but two after concluding they were ill-conceived and poorly positioned for gathering intelligence on the CIA's principal targets: terrorist groups and unconventional weapons proliferation networks.

The closures were a blow to two of the CIA's most pressing priorities after the 2001 terrorist attacks: expanding its overseas presence and changing the way it deploys spies.

The companies were the centerpiece of an ambitious plan to increase the number of case officers sent overseas under what is known as "nonofficial cover," meaning they would pose as employees of investment banks, consulting firms or other fictitious enterprises with no apparent ties to the U.S. government.

But the plan became the source of significant dispute within the agency and was plagued with problems, officials said. The bogus companies were located far from Muslim enclaves in Europe and other targets. Their size raised concerns that one mistake would blow the cover of many agents. And because business travelers don't ordinarily come into contact with Al Qaeda or other high-priority adversaries, officials said, the cover didn't work.

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