Making the complex simple
August 7, 2018
Attached ICM Memo on Demodulation: Key Points
- The Institute for Complexity Management (ICM) is a charitable non-profit organization that provides pro bono assistance to small U.S. businesses that have become the victims of unfair competition by the U.S. Government (USG).
- ICM conducts research and investigates the cases we take on. The investigations are conducted by Principal Investigators (PI) of proven integrity who are highly experienced in the specific subject matters they are assigned to investigate.
- ICM is a non-partisan organization. ICM is committed to objectively reporting the facts exactly as we find them.
- Since 2013, law enforcement agencies including the Department of Justice (DOJ) and the FBI, congressional oversight authorities and the Federal Courts were repeatedly made aware of the Constitutional violations described herein by ICM but refused to act.
- Thusly, we are now providing this information to the American public because they have the right to know and, in the hope, that corrective actions will be taken.
- In June 2013, ICM received a tip from a highly placed source in the Department of Commerce reporting that a small company called Demodulation Inc. was having difficulty with the USG in commercializing their product known as microwire integrated radio frequency (MWRF) technology.
- MWRF technology has critical and highly classified national security and intelligence applications. It is thinner than a human hair making it difficult to detect. Whenever MWRF products are moved in the earth’s gravitational field they give off a burst of energy. They never need batteries to operate and can be detected at both near and far distances—even by satellites in space.
- John Hnatio was assigned as the ICM PI on the case of Demodulation because of his unique experience while serving in the USG as a national security and a technology transfer expert.
- From 2013 to the present time, ICM has conducted an exhaustive investigation of the Demodulation matter.
Findings of the Investigation
The Executive Branch
- The intelligence community of the United States (USIC) is bypassing the rules of the Foreign Intelligence Surveillance Act (FISA) by mounting unlawful targeted intelligence operations against individual American citizens who are owners of small advanced technology businesses to commit industrial espionage.
- In the matter of Demodulation Inc., the small business first became the victim of USIC as part of a massive “pay-to-play” grant fraud scheme being perpetrated by Federal and New York State officials that operate government and quasi-governmental economic development programs.
- More than a billion dollars are spent each year on these programs that are deigned to bring the innovative ideas of small business entrepreneurs together with large industry to produce high paying jobs. Despite the investment of billions of dollars, these programs have produced only 408 jobs over the past two years.
- ICM’s investigation has found that these economic development programs are corrupted by political influence peddling at the highest levels of both the Federal and New York State Governments.
- These same programs are being used by elements of the Department of Defense (DOD) to misappropriate the valuable technologies of small businesses that are then clandestinely used by the Federal Government for classified military and intelligence uses. DOD is a member of USIC.
- The U.S. Army and the National Security Agency (NSA) clandestinely acquired a sample of Demodulation’s MWRF product and mounted a classified intelligence operation to remove two 155mm howitzer shells and detonators off the Picatinny Arsenal for testing. The MWRF sample was subsequently tested by the NSA and the U.S. Navy at the Patuxent Naval Air Station as part of the secret intelligence operation.
- The Department of Energy (DOE) at its Y-12 National Security Complex then “baited” Demodulation to enter into a Cooperative Research and Development Agreement (CRADA) to reportedly help Demodulation commercialize their valuable technology. DOE is a member of USIC.
- The true purpose of the CRADA, however, was to clandestinely misappropriate Demodulation’s MWRF technology trade secrets and reverse engineer their prototypical products for classified national security and intelligence uses.
- ICM found that agencies of the Federal Government are committing perjury before the U.S. Patents and Trademarks Office (USPTO) to obtain USG patents by denying the prior art of Demodulation’s MWRF technology. These bogus USG patents are referred to as “cover patents.”
- Repeated contacts to the Department of Justice including the FBI and USIC reporting violations of Article I (patents) and Amendment IV (search and seizure), V (takings) and XIV (due process) are being disregarded. The DOJ, FBI and USIC all decline to conduct any investigation.
The Legislative Branch
- The Chairman of the Senate Judiciary Committee was repeatedly advised over a period of four years of the Constitutional violations taking place. The Chair continues to disregard ICM’s repeated letters, calls and requests for an oversight investigation. The Chair refuses to respond to any ICM correspondence.
- The Chief Investigative Counsel for the Senate Judiciary Committee continues to obstruct any investigation of the Demodulation matter.
- The Chairman of the House Judiciary Committee was also advised over a period of four years of the Constitutional violations taking place. The Chair continues to disregard ICM’s repeated letters, calls and requests for an oversight investigation. He refuses to respond to any ICM correspondence.
- The Chairman of the Senate Select Committee on Intelligence (SSCI) was officially informed of the Constitutional violations that are taking place over the last two years but continues to disregard ICM’s repeated requests to assign a special prosecutor to investigate. He too refuses to respond to any ICM correspondence.
- Instead, the SSCI Chairman instructed ICM to contact the USIC Office of Inspector General (IG). The USIC-IG declined to conduct any investigation of the intelligence community’s violation of the Constitution or FISA Court rules for the intelligence targeting of U.S. citizens.
- The investigation determined that the SSCI Chairman engaged in an egregious conflict of interest because his principal constituent in his home State was the DOE management and operating (M&O) national security contractor at the Y-12 National Security Complex at the time Demodulation was “baited” into a CRADA as part of the USIC scheme to misappropriate Demodulation’s trade secrets and to reverse engineer their MWRF products for classified national security applications.
- The Chairman of the House Permanent Select Committee on Intelligence (HPSCI) was also officially informed of the Constitutional violations that were taking place over two years ago but continues to disregard ICM’s repeated requests to investigate. The HPSCI staff refers ICM back to the SSCI staff for resolution in a “catch-22” tactic to avoid responsibility.
- The House Committee on Oversight and Government Reform, after reviewing the massive evidence amassed in the case of Demodulation announced their plans to conduct major national hearings on the issue of unfair USG competition with small businesses.
- At that time, Chairman Mica and Representative Sessions were interviewed by the media on their plans to hold the hearings. Shortly thereafter, however, all plans to conduct the hearings were stopped for mysterious and yet unexplained reasons.
- All other major Congressional Committees with possible jurisdiction over the Demodulation matter were contacted but never responded to ICM’s repeated letters and telephone calls requesting an investigation of Constitutional violations being reported to them.
The Judicial Branch
- Two sitting Federal Judges—one on the Federal District Court of Claims and the other on the Federal District Court of New Jersey participated in the intentional scuttling of the legal cases brought by Demodulation before their Courts.
- Both Judges were aware that Demodulation’s legal causes of action were being purposely despoiled by the actions of Demodulation’s legal counsels under the improper influence of the FBI and their parent agency DOJ.
- ICM’s investigation revealed that Demodulation’s attorneys were operating under the direct influence of the DOJ and the FBI to scuttle the legal cases of Demodulation to avoid exposure for bypassing the rules of the FISA Court as they targeted Demodulation for intelligence collection and espionage.
- The FBI was simultaneously protecting an organized crime informant who was also a client of Demodulation’s law firm.
- The Department of Justice defense team colluded with Demodulation’s legal counsels who were under the direct influence of the FBI and the Court to destroy the reputation and character of ICM’s PI investigating the case of Demodulation to have him declared as a national security threat to the United States by the Federal Court to preclude his testimony as an expert witness in the case.
- The DOJ legal team representing the USG during Court proceedings failed to conduct the discovery required to determine the classified USG uses of MWRF technology. USG counsel was never compelled to do so by the Judge.
- The U.S. legal team intentionally withheld evidence from the Court that irrefutably showed the unconstitutional USIC targeting of Demodulation for collection that bypassed the FISA Court to commit industrial espionage.
- Both Federal Judges were aware that Demodulation’s legal counsels were violating the Rules of Professional Conduct for Practicing Attorneys but violated their own Court rules by intentionally failing to report their unethical conduct to appropriate disciplinary authorities. Both Federal Judges acted intentionally.
- ICM complaints against both Federal Judges under 28 U.S. Code Chapter 16 – COMPLAINTS AGAINST JUDGES AND JUDICIAL DISCIPLINE and the Judicial Conduct and Disability Act of 1980, 28 U.S.C. §§ 351-364 were summarily dismissed as “merits-related” when they were clearly not showing that the Federal judiciary is corrupted.
The Institute for Complexity Management
Making the complex simple
August 7, 2018
Subject: The Case of Demodulation
From: The Institute for Complexity Management
I am a retired U.S. Government (USG) official with experience as a former Assistant Deputy Federal Marshal who was employed by the USG for thirty years. I worked in the areas of nuclear safeguards, non-proliferation of weapons of mass destruction, internal security, counter-terrorism, intelligence and technology transfer. I have conducted highly complex investigations of breaches of the national security.
In 2004, I retired and started a small company to commercialize my patent for what is now called “predictive analytics.” The technology harvests data from the World Wide Web 24-7 and uses algorithmic reasoning to filter and organize the data to reveal the statistical probabilities of both beneficial and adverse events occurring within specified knowledge domains. The technology analyzes past events and identifies measures to take advantage of benefit opportunities and mitigate against adverse events. The predictive analytics market has grown exponentially since 2004 and MarketsandMarkets estimates that the predictive analytics market will grow to 12.41 billion USD by 2022.
In 2009, I started several small companies to commercialize my patent across the several different knowledge domains including the food supply, school safety and airline transportation and developed several working prototypical software applications. In 2012, after exhausting several million dollars in personal and capital investment from independent sources, my companies were driven out of business as the result of the misappropriation of my intellectual property by the USG. Two principal Executive Branch agencies were involved—the Food and Drug Administration (FDA) and the Department of Justice (DOJ) including the FBI. Predictive analytics has many highly classified uses by the USG including national defense, intelligence and counter-terrorism applications. The USG then engaged in a cover-up of the theft and “black-listed” me personally and my businesses. I was forced out of business and professionally and economically ruined.
In 2013, after being forced out of business, I started the John Galt Program for Investigate Studies (JGPIS) as a division of my 501c3 organization, the Institute for Complexity Management (ICM). JGPIS was created for the specific purpose of providing pro bono help for other small businesses who were the victims of unfair USG competition. In June 2013, I received a tip from a highly placed confidential source in the Department of Commerce regarding a small New Jersey-based company called Demodulation, Inc. that was having difficulty in commercializing their products. Demodulation Inc. was a small business comprised solely of U.S. citizens that produced microwire radio frequency integrated (MWRF) prototypical products in the mid-2000’s based on prior microwire technology developments made by the Former Soviet Union (FSU) as part of their military stealth programs.
Microwire is thinner than a human hair and gives off a small burst of energy whenever it is moved in the earth’s gravitational field. It needs no batteries. When integrated with radio frequency technology the small burst of energy can be detected at both near and far distances-even by satellites in space giving it vital national security applications. At the time Demodulation was working to develop the MWRF technology in the mid-2000’s, they did not know that their knowledge of microwire had already been obtained by the USG as part of classified intelligence operations against the FSU. But despite their best efforts, the USG was unable to optimize the performance of MWRF technology to satisfy USG intelligence and national security needs.
Demodulation Inc., however, was so successful in optimizing the performance of the MWRF technology that they were able to produce a full portfolio of patents and trade secrets that they embodied in several fully functional prototypes of various MWRF products. Consequently, Demodulation Inc. became the focus of targeted USG intelligence collection efforts aimed at the misappropriation of the small company’s MWRF trade secrets and to reverse engineer their prototypical products to satisfy the USG’s own intelligence and national security needs.
At least three unlawful domestic intelligence collection operations by USG intelligence agencies targeted Demodulation and their MWRF patents and trade secrets to reverse engineer the small company’s prototypical products. The first intelligence operation combined the efforts of USG intelligence and New York State economic development agencies as they misappropriated Demodulation’s trade secrets. The second involved the theft of Demodulation’s MWRF technology products for testing on munitions and detonators clandestinely removed from the Picatinny Arsenal by the U.S. Army for subsequent USG intelligence testing by the National Security Agency (NSA) and the U.S. Navy at the Patuxent Naval Air Station. The third intelligence operation involved USG intelligence agencies including the Department of Energy (DOE). In this case, the DOE at its Y-12 National Security Complex baited Demodulation with false promises to help the small company commercialize their MWRF technology. DOE breached their contract with Demodulation and misappropriated their trade secrets and reverse engineered their prototypical MWRF products.
In 2011, Demodulation turned to a law firm in New Jersey to file suits in the Superior Court of New Jersey, the Federal District Court of New Jersey and the Federal District Court of Claims. Collectively, the suits alleged that the USG and their contractors misappropriated the small business’s trade secrets and infringed on their portfolio of thirteen MWRF related patents. What Demodulation did not know at that time was that their legal counsel was operating under the direct influence of the FBI to intentionally scuttle Demodulation’s legal causes of action before the Courts as part of a massive cover-up of their domestic intelligence operations and to protect an FBI informant who was a client of the same law firm. Six of Demodulation’s former attorneys have been docketed by the Office of Attorney Ethics (OAE) of the Supreme Court of New Jersey and the matter is still under investigation. The scheme being employed by the Department of Justice and the FBI was specifically designed to allow the Executive Branch to bypass the query rules of the United States Foreign Intelligence Surveillance (FISA) Court to allow for unlawful USG espionage operations targeting individual U.S citizens operating small businesses to misappropriate, under classified intelligence operations, advanced technologies of interest to the USG national defense and intelligence communities. Repeated reports to the FBI, the Department of Justice (DOJ), the Director of National Security and the Federal Courts concerning the illegal activities of the USG intelligence community were disregarded as part of an intentional cover-up involving not only the Executive but also the Legislative and Judicial Branches of the USG.
Key Congressional oversight Committees were contacted including the Senate and House Intelligence, Judiciary and Government Oversight Committees. When it was disclosed that one of the USG contractors involved was the principal industrial constituent of the Chairman of the Senate Select Intelligence Committee (SSCI), the Chairman acted in league with his congressional colleagues, in both the Senate and the House, to politically block any investigation that would expose the coverup.
The Department of Justice legal team representing the USG in the matter of Demodulation engaged in lawyer misconduct when they colluded with the U.S. intelligence community including the FBI, Demodulation’s former legal counsels and two Federal Judges to scuttle the legal causes of action brought by Demodulation before their Courts. Subsequent complaints under the Judicial Conduct and Disability Act of 1980, 28 U.S.C. §§ 351-364 against these Federal judges were dismissed based on specious claims that they were merits related when, in fact, they were not.
Since 2013, ICM has investigated and amassed thousands of pieces of evidence containing irrefutable evidence of the following five things:
- Industrial and economic espionage at the hands of the USG intelligence community involving the misappropriation of Demodulation’s microwire-radio-frequency (MWRF) technology and trade secrets;
- A massive “pay-to-play” grant fraud scheme taking place in the State of New York that victimized Demodulation, Inc. and countless other small businesses;
- The wrongful death of a mid-level accountant at a SUNY University, as part of the “pay-to-play” grant fraud scheme being perpetrated in New York State;
- The misappropriation of Demodulation’s MWRF technology by the Department of Energy (DOE) and their technical services contractor at the Y-12 National Security Complex and;
- The egregious violations of the Rules of Professional Conduct (RPC) for practicing attorneys, including felonious crimes, by Demodulation’s former legal counsels who were operating under the direct influence and protection of the FBI.
Demodulation’s causes of legal action were completely despoiled by the collusory activities of Demodulation’s former legal counsels, the Department of Justice including the FBI and two Federal Judges. Demodulation resolved that any appeals in the matter were futile because of the obstruction of justice that was taking place in their legal pursuits.
As part of ICM’s advocacy for Demodulation, we too became the victim of Demodulation’s former counsels, USG lawyers and the two Judges sitting in the Federal Courts as they destroyed the good character and reputation of ICM’s Principal Investigator (PI) on the case. For example, Demodulation’s former counsels attempted to silence ICM’s advocacy for Demodulation by threats and extortion including specious reports that the PI intentionally released classified national defense information, practiced law without a license and committed other felonious crimes. The FBI repeatedly refused to investigate ICM requests for an investigation of the Demodulation matter as we repeatedly reported the commission of crimes. The Department of Justice Office of Professional Responsibility still refuses to release disparaging information about ICM under the “deliberative” exemption to the FOIA. ICM has been disparaged on Capitol Hill for insisting that proper oversight of the intelligence community is required. Finally, one of the Federal Judges involved has destroyed the personal and professional reputation of the ICM PI on the case by falsely declaring that he represents a threat to the national security.
Since 2013, ICM has amassed, analyzed and assembled clear, compelling and crushing evidence in the matter of Demodulation. ICM has prepared a computerized database containing thousands of documents and other pieces of evidentiary material making the case of Demodulation the most fully documented case of its kind. The evidence has been provided to appropriate U.S. Federal authorities occupying the most senior positions in the Executive, Legislative and Judicial Branches all with no action.
Dr. John H. Hnatio, EdD
The President of the United States
Director of National Intelligence
Attorney General of the United States
Director of the Federal Bureau of Investigation, Department of Justice
President of the Senate
President pro tempore of the United States Senate
Speaker of the U.S. House of Representatives
Chief Clerk of the United States Supreme Court