Ptech presents no security risk

Date: Wednesday, December 11, 2002 1:45 PM

H-1B and JOB DESTRUCTION NEWSLETTER

www.ZaZona.com

The Justice department seems to feel there is no problem with Ptech since
their H-1Bs have never worked on any classified systems. They ignore the
huge databases of personal information stored on government computers that
Ptech employees do have access too - and this information is almost never
classified. Is the Justice department just too dumb to understand the power
of information databases or did they once again decide that profits are more
important than national security?

http://www.gcn.com/vol1_no1/daily-updates/20603-1.html

Justice states Ptech presents no security risk

12/09/02
By Wilson P. Dizard III and Patience Wait,
Post Newsweek Tech Media

In the aftermath of an early Friday search of software vendor Ptech Inc.’s
headquarters, Justice Department officials say the government does not have
any reason to believe any federal systems have been compromised.

“The search was conducted in connection with an on-going financial crime
investigation,” U.S. Attorney for Massachusetts Michael J. Sullivan said in
a statement. “Media characterizations of this as a terrorist investigation
are premature.”

For its part, Ptech denied that that the search of its Quincy, Mass.,
offices constituted a raid and said it was cooperating with the
investigation. “The company categorically denies having any connection with
a terrorist organization,” a company release said.

Sullivan said because Ptech had provided software to federal agencies,
“there have been questions raised concerning their products. All the
products provided to the government were of a nonclassified nature. However,
out of an abundance of caution, the affected government agencies, including
the FBI, conducted a review of their computer systems.”

The General Services Administration said in a statement that Ptech has
conducted about $3.3 million in work for the federal government under a GSA
schedule contract.

The review had not uncovered any vulnerabilities in Ptech products, Sullivan
said. “There is also no evidence to suggest that the system is susceptible
to compromise or poses any security risk,” he said.

Sources close to the company said it had never worked on any classified
systems, and federal background checks of its employees had been carried out
for other reasons, such as contact with sensitive information. Ptech said it
had been told by government investigators that neither the company nor its
officers and employees are the target of the government’s investigation.

Ptech said company officials had granted federal investigators access to the
company’s premises. “Moreover, Ptech has assisted the government in its
investigation and intends to continue to do so,” the company said.

The investigation has drawn IBM Corp. into the fray as well because Ptech
promotes an “alliance partner” relationship with IBM on its Web site. IBM
spokesman Jeff Gluck minimized the connection between the two companies. “A
lot of small companies like to play up the relationship with IBM. This is
one example,” Gluck said.

Gluck confirmed that Ptech has worked with IBM’s global services group to
help map and model enterprise architectures. “There are engagements where we
’re working together, [and] places where Ptech sold us their software,” he
said. But there is no reason to suspect there’s anything wrong with the
software, Gluck said.

No law enforcement agencies have contacted IBM about Ptech, he said.

© 2002 PostNewsweek Tech Media, a division of Post Newsweek Media

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