FinancialContent is the trusted provider of stock market information to the media industry.
January 24, 2012 at 00:43 AM EST
What Happened To Deep Capture?
On any other day, that might seem strange: Ali Nazerali Wants Own Past Sealed in Orwell’s Memory Hole In October 2011, Ali Nazerali, a Canadian of Middle Eastern origin who operates boiler rooms (according to regulators) and whose business relationships drew the scrutiny of DeepCapture, went to court in British Columbia to obtain an injunction [...]

On any other day, that might seem strange: Ali Nazerali Wants Own Past Sealed in Orwell’s Memory Hole

In October 2011, Ali Nazerali, a Canadian of Middle Eastern origin who operates boiler rooms (according to regulators) and whose business relationships drew the scrutiny of DeepCapture, went to court in British Columbia to obtain an injunction against the 1st Amendment to the US Constitution (the one regarding freedom of speech and press).  In an ex parte proceeding (meaning that DeepCapture was not even notified of the proceedings, let alone allowed to present any argument),  the Canadian court issued an injunction ordering that DeepCapture be disappeared like some recalcitrant Argentinian muckracker.  Immediately and also without notification, US corporations Google, Bing, and GoDaddy complied with this foreign court’s order to disappear all trace of DeepCapture from existence.

However, in December, 2011 DeepCapture had its chance to speak in court in Canada. Once it had heard our side, the Court  pulled its injunction, and found that Nazerali’s lawyers had misled the Court.

As famed Stoic philosopher Nicholas Cage put it in Con Air, “On any other day, that might seem strange.”

But this is, after all, the world of DeepCapture, where dogs and cats dance together and the fire rain falls. So now, the rest of the story….

Early in 2011 Mark Mitchell began a multipart story exploring the way that various elements of transnational Organized Crime, international terrorist financiers, and foreign intelligence services have entwined, infiltrated the global financial system, and are manipulating and destabilizing it.

Which sounds like a lot to swallow, I know, until one considers that on July 25, 2011, President Obama signed an Executive Order declaring a national emergency on pretty much precisely those grounds:

I, BARACK OBAMA, President of the United States of America, find that the activities of significant transnational criminal organizations, such as those listed in the Annex to this order, have reached such scope and gravity that they threaten the stability of international political and economic systems.  Such organizations are becoming increasingly sophisticated and dangerous to the United States; they are increasingly entrenched in the operations of foreign governments and the international financial system, thereby weakening democratic institutions, degrading the rule of law, and undermining economic markets.  These organizations facilitate and aggravate violent civil conflicts and increasingly facilitate the activities of other dangerous persons.  I therefore determine that significant transnational criminal organizations constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States, and hereby declare a national emergency to deal with that threat.

The US National Security Council immediately followed up with this statement:

“Transnational organized crime (TOC) poses a significant and growing threat to national and international security, with dire implications for public safety, public health, democratic institutions, and economic stability across the globe. Not only are criminal networks expanding, but they also are diversifying their activities, resulting in the convergence of threats that were once distinct and today have explosive and destabilizing effects…. The apparent growing nexus in some states among TOC [Transnational Organized Crime] groups and elements of government—including intelligence services—and high-level business figures represents a significant threat to economic growth and democratic institutions… As they expand, TOC networks may threaten stability and undermine free markets as they build alliances with political leaders, financial institutions, law enforcement, foreign intelligence, and security agencies.”

These statements from the White House and NSC are precisely on point with DeepCapture’s thesis. In fact, the Executive Order goes on to name four criminal networks which figure prominently in Deepcapture’s story.

We knew DeepCapture’s story would raise eyebrows, but we believed, and still believe, that it is important journalism concerning issues that clearly are of global concern and should be part of the public debate.  And as journalists, we at DeepCapture are quite proud of having been so far ahead of the curve, and so shockingly far ahead of the US mainstream media, which (we contend) are (with rare exception) such lapdogs to corporate America, and especially to the financial system, that they would never have been able to put this story together even if all the relevant evidence was shoved up its nose (which it was).  Deep Capture believes that it is not incidental that only the British journal The Economist has been able to cover this issue, with such recent stories as:America’s dodgy financial plumbing: TOO A FAIL COUNT –The sheer number of unsettled trades is rattling regulatorsFinancialterrorism: THE WAR ON TERABYTES – Policymakers worry about attacks on America’s financial systemNAKED SHORT – SELLING:  A not-so-short story

In September 2011 Altaf Nazerali, who, while not a central character in the story, is mentioned numerous times, contacted us raising concerns that certain statements regarding him were inaccurate. Mark looked back at his  reporting and, in cases where he believed it was warranted, modified the story: While we believe that facts should be reported, we are never above taking another  look at the story to make sure that we are as fair as possible. Good journalism stirs good debate.  And we are responsible journalists.

Mark sought further contact with Nazerali in early September but heard nothing further.

Then without any warning to Deep Capture, Nazerali attempted to silence Deep Capture.

On October 18, 2011, without notice to Deep Capture, Mark, or Deep Capture’s internet hosts, Nazerali filed a  lawsuit in Vancouver, Canada and appeared the same day before a judge seeking an injunction  taking Deep Capture off the internet and seizing its domain name. Only Nazerali and his lawyer were in the courtroom when he asked for this injunction so the judge only heard one side  of the story. Nazerali got his injunction.

Ali Nazerali  delayed serving formal notice of this injunction on Deep Capture and its reporters. The first  mailed service was made about 10 days after the injunction was made. The actual personal  service did not occur for several weeks. Nazerali did not comply with Canadian law and  promptly serve Deep Capture with copies of all of the affidavits and legal submissions he put  before the judge on October 19, 2011 at his one-sided injunction application. That only came to  our attention in late November. All of this had the effect of delaying Deep Capture’s ability to  seek relief from the court.

However, Nazerali’s lawyers immediately sent notice of the Canadian court’s injunction against Deep Capture to Google, Bing, GoDaddy, and other internet companies  demanding that they comply with it, and black out the DeepCapture site.

Amazingly (to me), these US companies complied, and blacked out Deep Capture. GoDaddy took down the site. Google and Bing both erased all of DeepCapture from the caches. In the most literal sense, we disappeared down Orwell’s Memory Hole.

On December 13, 2011 Deep Capture and Mark were able to appear before the British Columbia court . We presented our case through affidavits showing the basis for our  reporting. We presented the judge with the governing Canadian law which places severe  restrictions on pre-trial injunctions, limiting them to rare and special circumstances which do not  apply to Deep Capture.

Ruling from the bench (i.e., immediately), the judge denied Mr. Nazerali’s request that the injunction be  extended beyond December 13, 2011.

In addition, the judge expressly ruled that Ali Nazerali’s lawyers had misled the judge who heard  Nazerali’s earlier argument on October 19, 2011.

At that point Deep Capture was free to return to the internet.

However, Ali Nazerali was not done. He had his lawyer send an e-mail to Rackspace citing to the  original October 19, 2011 injunction order and asking that Rackspace refuse to host Deep  Capture.  He neglected to tell Rackspace that the British Columbia court had already refused to extend the  injunction and that it had ceased to have any force. And he certainly did not tell Rackspace that the British Columbia court had criticized Nazerali’s submissions to the original judge on October  19, 2011, finding that Nazerali’s lawyer had misled the court.

Ali Nazerali wants to keep Deep Capture and its reporting away from the public.  But why would Mr. Nazerali sue Deep Capture, a Utah company, in Canada? We can only  speculate. As Gary Weiss (himself a shill for criminal elements, as has been widely documented within DeepCapture) noted in his blog almost immediately after the original injunction was  issued, Canadian law provides far less protection for free speech than is guaranteed by the  United States Constitution. In fact, Canadian defamation law differs in so many key respects  from United States law that at least one federal court has held that Canadian defamation  judgments are unenforceable against United States citizens.

In fact, one key difference is what is meant by “defamatory.” It is true that the Canadian court  noted that Deep Capture’s reporting regarding Mr. Nazerali was “defamatory.” But, importantly, this does not mean that it was not true or that it was not fair reporting. It does not mean that such  statements may not be published. And it does not mean that Mr. Nazerali is entitled to any  damages. Rather, it simply means that the statements regarding Mr. Nazerali tended to harm his  reputation.

“Carole took the cookies from the cookie jar” is defamatory under the law of British Columbia.  Stating that Carole took the cookies tends to harm her reputation even if she did, in fact, take the cookies. Here Mr. Nazerali has been involved with certain individuals and cultivated certain relationships that may harm his reputation as such connections become known. But this does not mean that such relationships cannot, and should not, be fairly and freely reported.

Importantly, no court has held that Deep Capture’s reporting as to Mr. Nazerali was “actionably  defamatory.” After the Canadian Court was given the chance to read Mark’s affidavit explaining the basis for his reporting, it denied Mr. Nazerali’s request for an extension of the injunction  keeping Deep Capture away from the public on the basis that the claims and defenses should be  heard and determined by a jury at a trial.

Most hilariously, I had an idea that seems to have worked. For years a Cone of Silence had surrounded Deep Capture: once the supine and obedient mainstream press could no longer speak for me, but had to confront me, in my own words, on this website, they revealed themselves for what they were: barroom bullies who, once called out, stick their faces back in their beers and pretend not to have heard.  But during the time that DeepCapture was blacked out, the Cone of Silence surrounding Deep Capture finally lifted: parties that once made great circumlocutions to avoid mentioning us (lest they let readers evaluate the arguments and evidence for themselves) suddenly are pounding their chests.  So I decided to let DeepCapture stay down for a few weeks, to give them a chance to strut about it: I am utterly confident that, now that Deep Capture is back online, they will return to muttering into their beers, as has been their practice lo these many years.

Deep Capture has been unavailable for a couple months.  Now that we are back on-line you deserve to know what happened, especially since the facts should cause concern in everybody that appreciates the role a free press and free speech  play in a free nation (and the offending story will be republished, in full, and with a great deal of new information that Nazerali’s legal jousting caused to come our way: thank you, Ali Nazerali).

The US mainstream media are apparently unconcerned by a foreign court’s injunction to black out a US website, and think unremarkable the alacrity with which Google, Bing, and GoDaddy would accede to such an order. Thus, Deep Capture was forced to tell the rest of this story (which, we maintain, is but a microcosm of the whole story of capture) in order to pursue our investigative reporting within our constitutional rights of free expression of speech and press.

After all, we are the red pill.

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here
   
Financial Widgets

Display market data, financial news or stock quotes - Learn More

Advertising Network

Advertise on FinancialContent's huge network - Learn More

Web Services

Power your internet and wireless applications - Learn More