Feds paid private brokers for phone records

updated 11:15 a.m. ET June 20, 2006

WASHINGTON - Numerous federal and local law enforcement agencies have bypassed subpoenas and warrants designed to protect civil liberties and gathered Americans’ personal telephone records from private-sector data brokers.

These brokers, many of whom advertise aggressively on the Internet, have gotten into customer accounts online, tricked phone companies into revealing information and even acknowledged that their practices violate laws, according to documents gathered by congressional investigators and provided to The Associated Press.

The law enforcement agencies include offices in the Homeland Security Department and Justice Department — including the FBI and U.S. Marshal’s Service — and municipal police departments in California, Colorado, Florida, Georgia and Utah. Experts believe hundreds of other departments frequently use such services.

“We are requesting any and all information you have regarding the above cell phone account and the account holder ... including account activity and the account holder’s address,” Ana Bueno, a police investigator in Redwood City, Calif., wrote in October to PDJ Investigations of Granbury, Texas.

An agent in Denver for U.S. Immigration and Customs Enforcement, Anna Wells, sent a similar request on March 31 on Homeland Security stationery: “I am looking for all available subscriber information for the following phone number,” Wells wrote to a corporate alias used by PDJ.

U.S. rings up $30 million bill for data
Congressional investigators estimated the U.S. government spent $30 million last year buying personal data from private brokers. But that number likely understates the breadth of transactions, since brokers said they rarely charge law enforcement agencies any price.

PDJ said it always provided help to police for free. “Agencies from all across the country took advantage of it,” said PDJ’s lawyer, Larry Slade of Los Angeles.

A lawmaker who has investigated the industry said Monday he was concerned by the practices of data brokers.

“We know law enforcement has used this because it is easily obtained and you can gather a lot of information very quickly,” said Rep. Ed Whitfield, R-Ky., head of the House Energy and Commerce investigations subcommittee. The panel expects to conduct hearings this week.

Whitfield said data companies will relentlessly pursue a target’s personal information. “They will impersonate and use everything available that they have to convince the person who has the information to share it with them, and it’s shocking how successful they are,” Whitfield said. “They can basically obtain any information about anybody on any subject.”

The congressman said laws on the subject are vague: “There’s a good chance there are some laws being broken, but it’s not really clear precisely which laws.”

‘These people are being demonized’
James Bearden, a Texas lawyer who represents four such data brokers, compared the companies’ activities to the National Security Agency, which reportedly compiles the phone records of ordinary Americans.

“The government is doing exactly what these people are accused of doing,” Bearden said. “These people are being demonized. These are people who are partners with law enforcement on a regular basis.”

The police agencies told AP they used the data brokers because it was quicker and easier than subpoenas, and their lawyers believe their actions were lawful. Some agencies, such as Immigrations and Customs Enforcement, instructed agents to stop the practice after congressional inquiries.

Policies under review
The U.S. Marshal’s Service told AP it was examining its policies but compared services offered by data brokers to Web sites providing public telephone numbers nationally.

None of the police agencies interviewed by AP said they researched these data brokers to determine how they secretly gather sensitive information like names associated with unlisted numbers, records of phone calls, e-mail aliases — even tracing a person’s location using their cellular phone signal.

“If it’s on the Internet and it’s been commended to us, we wouldn’t do a full-scale investigation,” Marshal’s Service spokesman David Turner said. “We don’t knowingly go into any source that would be illegal. We were not aware, I’m fairly certain, what technique was used by these subscriber services.”

At Immigration and Customs Enforcement, spokesman Dean Boyd said agents did not pay for phone records and sought approval from U.S. prosecutors before making requests. Their goal was “to more quickly identify and filter out phone numbers that were unrelated to their investigations,” Boyd said.

Targets of the police interest include alleged marijuana smugglers, car thieves, armed thugs and others. The data services also are enormously popular among banks and other lenders, private detectives and suspicious spouses. Customers included:

• A U.S. Labor Department employee who used her government e-mail address and phone number to buy two months of personal cellular phone records of a woman in New Jersey.
• A buyer who received credit card information about the father of murder victim Jon Benet Ramsey.
• A buyer who obtained 20 printed pages of phone calls by pro basketball player Damon Jones of the Cleveland Cavaliers.

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