The U.S. Government is spying on its own citizens to engage in industrial espionage to destroy American companies

By John Hnatio

We have been working with a small company since June of 2013, when we first received a tip from a senior official at the U.S. Department of Commerce that the United States Government was engaging in anticompetitive conduct against the small business.  The small company is called Demodulation.  Demodulation found an advanced technology called microwire.  Microwire is thinner than a human hair and whenever it is moved it gives off a small burst of energy that can be detected at near and far distances—even in space by satellites.  It needs no batteries to work.  As you might imagine, microwire has highly classified national defense and intelligence applications for clandestine tracking of valuable assets and many other intelligence uses.

Demodulation first found the technology in the former Soviet Union where it was used to make Russian spy planes stealthy.  After Demodulation got a license to use the core microwire patent from the Romanian electro-physicist who invented it, they went out on their own and developed a portfolio of thirteen additional patents to commercialize the technology.  What Demodulation did not know, however, was that the United States Government had already secretly misappropriated the microwire technology from the Romanian electro-physicist.

But the U.S. Government was unable to optimize the performance of microwire because they could not find the right composition to make it work and they could not control the quality of the methods they tried to use to produce microwire.  Meanwhile, Demodulation solved these composition and production challenges and made working prototypes that proved the incredible value of their microwire products for national defense and intelligence applications.  Because the U.S. Government could not afford to work with Demodulation without exposing the fact that it originally stole the technology from Romania, by now a strategic North American Treaty Organization (NATO) ally, it had to clandestinely steal Demodulation’s advancements.

For these reasons, the U.S. intelligence community mounted a secret, but highly illegal, intelligence collection operation to steal Demodulation’s trade secrets. The U.S. Government desperately needed Demodulation’s trade secrets that would show the proper compositions of microwire and the best ways to produce it for different applications.

Because Demodulation had their own patents, the U.S. intelligence community violated Article I of the U.S. Constitution which forbids infringement on someone else’s patents.

Article II of the Constitution deals with treaties.  By stealing the microwire from Romania in the first place, the USG violated treaties signed by the U.S. where our country agreed not to steal the intellectual property of other countries including Romania.  In this case, the U.S. Government, has shown that it is no better than China and others who steal the intellectual property of others for their own benefit.

Amendment IV to the U.S. Constitution forbids unlawful search and seizure of the property of all American citizens by the U.S. Government.  The U.S. intelligence community violated Amendment IV by fraudulently inducing Demodulation to brief them about their composition and production methods under the guise of helping them commercialize their technology when they were really stealing Demodulation’s trade secrets.

To top things off, the Department of Energy (DOE) fraudulently induced Demodulation to enter into a Cooperative Research and Development Agreement (CRADA) to steal their trade secrets. A CRADA is a special arrangement where a U.S. Government agency is supposed to help a small business commercialize their technology.  Instead, DOE stole Demodulation’s trade secrets to develop their own classified applications. Official U.S. Government funding records show that DOE spent at least four million dollars behind Demodulation’s back using the company’s trade secrets to optimize the performance of microwire for the U.S. Government’s own uses.

Amendment V of the U.S. Constitution is often called the “takings clause” because it forbids the U.S. Government from simply taking the possessions of American citizens without due process of the law.  In this case, however, the U.S. Government simply ignored Amendment V of the Constitution and trampled on the rights of Demodulation by stealing the company’s patents and trade secrets with no remuneration at all.

By the time Demodulation figured things out, the intelligence community was already deeply engaged in a cover-up of their actions that now involved Demodulation’s own attorneys, U.S. defense counsels, congress and the Federal judges overseeing Demodulation’s legal cases.

When Demodulation turned to the Federal Bureau of Investigation (FBI), a member of the intelligence community, the FBI directly influenced both Demodulation’s attorneys and the U.S. Government’s defense attorneys to collude in the scuttling of three of the small company’s lawsuits.  Under the FBI’s influence, two Federal Judges were also corrupted to “look the other way” as Demodulation’s and the U.S. Government attorneys worked together to scuttle the legal cases of Demodulation. All of this was done to avoid exposure of the intelligence community’s crimes in violating the Constitution.  Congress was no help with the Senate and House Judiciary Committees refusing to investigate what was going on.

The Senate and House Committees on Intelligence were no better. When we briefed staff on the Senate Select Committee on Intelligence they showed no outrage when we presented them with the irrefutable evidence of the U.S. Government’s violations of the Constitution.  To get rid of us, congressional staff used the old time Washington D.C. trick of “passing the buck” as they told us to write a letter to the Inspector General of the Intelligence Community (IGIC)—a suggestion that everyone knows is like asking the fox to report his murders of the farmer’s chickens to animal control.  Asking the same organization responsible for committing crimes in first place to investigate itself turned out just the same way you might expect.  To avoid exposure, the IGIC simply refused to investigate the matter.

On April 30, 2017, we wrote a letter to IGIC McCullough transmitting a report for the record on the matter of Demodulation providing irrefutable proof that our allegations were true.  We redacted the report to assure that the identities of certain individuals, organizations and Federal judges were not identified.  This was necessary so that we would not despoil ongoing investigations in Washington, D.C., New Jersey and Illinois into the conduct of the Federal judges and attorneys involved in the Demodulation matter.

If you have never heard the expression, “We just can’t make this stuff up,” you may want to read our recent letter and attachments to IGIC McCullough. The story is a scary reminder that unless someone acts our Constitutional rights and liberties are in grave jeopardy.

John Hnatio is the Executive Director of the Institute for Complexity Management (ICM) who has served as the Principal Investigator (PI) on the matter of Demodulation since June of 2013.  He has over 30 years of experience working in the U.S. Government on national security matters.  In the past he has run major U.S. programs involving the former Soviet Union and has held some of the highest security clearances in the U.S. Government. Dr. Hnatio has obtained the sworn testimony of eyewitnesses to the events described above—actual individuals who witnessed the theft of munitions off the of the Picatinny Arsenal for testing Demodulation’s microwire and the subsequent testing of Demodulation’s microwire at the Patuxent Naval Air Station by the National Security Agency.  The case is supported by several investigative reports and a computer library of thousands of evidentiary documents.  Please take the time to read the attached report and then donate to ICM.  The only way ICM can continue to work to protect the Constitutional rights of all Americans is with your generous financial support. Please donate today.

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