-- Brad Friedman

As if Sequoia Voting Systems doesn't have enough trouble already, the company now needs some $2 million dollars in cash...quickly. Without it, it is likely to be subsumed by one of its nearest competitors, Hart InterCivic of Austin, TX, as soon as next Tuesday, The BRAD BLOG has learned.

In what could well be a major shift on the American election industry landscape --- and certainly on elections themselves in dozens of states across the country --- voting machine company Hart InterCivic informed the current owners of the beleaguered Sequoia of their intention to acquire ownership of the company in a move which could take effect as early as next week.

The attempted hostile takeover --- which, we've learned, has been quietly in the works behind the scenes since mid-February --- has set off a building panic among the senior management and owners at Sequoia, whose money woes had already led them to schedule a shut-down of their Oakland headquarters. That shop is to close within a matter of months, as the operations for the company are to be consolidated at its Denver offices.

The takeover by Hart is made possible in the wake of a deal made by Sequoia's current owners, SVS Holdings, Inc., with its former owners, the off-shore consortium Smartmatic. Smartmatic was forced to give up control of the company after the media and Congress noticed in 2006 that the company had ties to Venezuela's Hugo Chavez. The officers and owners of SVS are comprised largely of previous Sequoia officials who took over the company after Smartmatic's failed attempt to find an outside buyer in 2006. The deal resulted in an agreement between SVS and Smartmatic for the latter to hold a $2 million note from the purchase. Smartmatic now appears ready to sell that note to Hart as part of a $16 million dollar deal which SVS has a contractual right to match within a 60-day period, ending on April 15th.

Sequoia is believed by election experts to be this country's third largest voting machine company, followed by Hart. The combined operation, should the takeover be completed, could well create a new powerhouse in the industry, displacing #2 Diebold/Premier, and coming up just behind the country's currently largest election vendor, ES&S.

Court documents obtained by The BRAD BLOG reveal that Hart notified SVS of its intention to purchase the $2 million note held by Smartmatic on February 15th, giving the group of owners and share holders of SVS --- including CEO and President Jack Blaine, and VPs Michelle Shafer and Edwin Smith (whose names BRAD BLOG readers may recognize) --- just 60 days to match the offer Hart had given to Smartmatic. As the deadline nears, Due Dilligence processes have begun, and are near the final phases of completion at Sequoia...whether company management likes it or not.

Hart's move has sent Sequoia/SVS executives into a legal and financial tizzy and --- perhaps taking a page from Hillary Clinton's campaign book --- the company seems to be throwing the legal kitchen sink at both Hart and Smartmatic in an attempt to nullify Hart's offer. Court documents reveal arguments that Hart's is not a "bona fide" offer that SVS is legally required to match. So far, however, those legal maneuvers, reflected by a dizzying array of motions and cross-motions, suits and counter-suits --- completely unreported by anyone in the media until now --- have all been summarily and soundly rejected by the Delaware magistrate adjudicating the matter.

Every legal effort by Sequoia and SVS to dispatch with the hostile takeover attempt has failed miserably so far, leading Vice Chancellor Stephen P. Lamb of the Court of Chancery in Delaware to even describe one such legal theory of SVS' as...(big irony alert!)...a "conspiracy theory"!

But while Sequoia faces a plethora of legal liabilities concerning their oft-failed voting systems, Hart InterCivic faces its own share of challenges with a pending --- and damning --- federal fraud/qui tam suit against the company, as unsealed late last month. Moreover, Hart's acquisition plan could face scrutiny from members of Congress and Treasury Department officials, as well as states across the country who thought they had turned over control of their elections to Sequoia, only to soon learn there will be a new owner, not of their choosing, of the secret software and devices which determine the results of their public elections.

While litigation over claims of fraud and failure in both company's voting systems await, so does at least one major prize to the victor of this grudge match: New York state's soon-to-be-completed $100 million deal with Sequoia...or maybe now with Hart...or...whoever...

Guest blogged by Ellen Theisen, VotersUnite.Org

Over two years ago, the U.S. Justice Department filed a lawsuit against New York State to force the state to comply with the federal requirement to equip every polling place with voting systems that are accessible to people with disabilities, as mandated by the Help America Vote Act of 2002 (HAVA).

Meanwhile, the DoJ has taken no action at all to stop any state from using voting equipment that has been proven to violate HAVA’s requirement for accurate vote-counting.

While it's important for every citizen, disabled or not, to be able to vote privately, a private vote is meaningless if that vote is not counted accurately. Despite the equal weight HAVA gave to both important mandates, the federal requirement for accurate vote-counting is being wholly ignored by the states, and even the federal government.

Two recent incidents which have been making headlines --- in New Jersey and Ohio --- illustrate clear, undeniable violations of the federal accuracy requirement. They are impossible to deny or ignore. For the moment, however, federal officials are doing exactly that...

Princeton computer science professor and now-well known academic hacker of e-voting systems, Ed Felten, reports on his blog...

His article offers the details of the latest findings, but for the disturbing --- and too-often hilarious --- background on this incredible continuing scandal...

Meanwhile, over at tech 'zine InfoWorld, Robert X. Cringely takes notice of BRAD BLOG's exposé from earlier this week, on the man Sequoia Voting Systems is paying to "independently" review their failed AVC Advantage touch-screen machines (the ones that failed in NJ recently, but which are still set for use in the upcoming, crucial PA primary). He was as amused/horrified at whom they'd hired, instead of the actually qualified computer science professors at Princeton University whom Sequoia had threatened with legal action, should they dare a real examination of the company's faulty machines.

Cringely sums up our report succinctly this way...

One small thought in response to the good Cringely here. Sequoia are not the "gate-keepers," they just think they are, and therein lie the problems. He, we, and you are the gate-keepers. And until now, we've failed horribly to keep the crooks and liars --- like the folks at Sequoia and Diebold and ES&S and Hart InterCivic (take a look at that report please Robert, and the stunning complaint downloadable with it!) --- outside of those gates.

By the way, with the crush of other news elsewhere, and even at The BRAD BLOG this week, our rather jaw-dropping report on Gibbons (even if we say so ourselves) was largely overlooked out there by the CMSM and even the blogosphere. These stories --- the embarrassing Gibbons/Kwaidan report, the remarkable federal fraud case against Hart, and all the others here --- don't spread themselves around. Please do not misunderestimate the importance of your DIGGING, REDDIT-ing, and otherwise emailing and linking up to these stories far and wide. Notifying your local media about them (include the URL when you email them), can make all the difference.

We're doing our part, and appreciate whatever hand you can lend in return. It matters.

As we often say, this democracy ain't gonna save itself. And the gates ain't gonna keep themselves, either.

Last week, in the wake of their AVC Advantage touch-screen voting systems having been found to have failed in at least six counties following New Jersey's Super Tuesday Primary, and on the heels of much-deserved ridicule for having threatened Princeton computer scientists with legal action should they go forward with an independent technical review of their voting systems, as requested by NJ election officials, Sequoia Voting systems issued a laughable press release headlined "Sequoia Voting Systems supports third party reviews and testing of its election equipment," which John Gideon appropriately eviscerated for all of the (putting it nicely) "misleading half-truths" therein from the dishonest, desperate folks at Sequoia.

The company, which claims their oft-hacked votings systems (accidental hack here, on purpose hack here) are secure and "tamperproof", subsequently saw their own website ignominiously hacked thereafter late last week.

But, as if the constant predilections of Sequoia VPs Michelle Shafer and Edwin Smith to slap "kick me" signs on their own backs wasn't enough, they then went on to release another statement last Thursday announcing they were commissioning their own "external review" of their own voting systems "that includes review by an independent company," which nobody has ever heard of.

So who is this "Kwaidan Consulting of Houston, Texas," whom the geniuses at Sequoia have selected to carry out their independent, third-party review? You're not gonna be believe this one...

Blogged quickly by Brad from Palo Alto, CA...

We can't think of a clever enough turn of phrase this morning to adequately cover the full irony here... Via Computerworld...

Not enough irony yet? Add this...

Yes, that would be the same Ed Felten, computer science professor of Princeton, who last week was sent a threatening email from a Sequoia executive, warning of legal trouble should he dare examine the Sequoia AVC Advantage touch-screen voting machines which failed in New Jersey's Primary Election in February.

In the wake of this latest PR nightmare for the company, as John Gideon pointed out last night, they've decided to mount a Campaign of Lies instead of simply allowing their "tamperproof" e-voting systems to be examined by a third party. Brilliant strategy, guys. As usual.

The same failed Sequoia touch-screen systems, which have never been tested by any independent third-party, are currently set for use in Pennsylvania's Primary next month. We continue to encourage readers to click here to encourage NJ's AG to immediately commission a complete technical review of NJ's voting machines to determine what went wrong.

By John Gideon VotersUnite.Org

In a press release dated March 18 Sequoia Voting Systems attempted to quench the fire storm that resulted from failures of their voting machines in New Jersey and their subsequent threats of legal action against New Jersey counties and Princeton University scientists if they independently review the problematic voting machines. Unfortunately the press release is full of inaccuracies and obfuscation.

Here are the worst of them...

-- Brad Friedman

Sequoia Voting Systems' legal threats against Princeton computer science professors and New Jersey election officials, as we reported in exclusive detail last night, have apparently had their intended effect.

The strong-arm email sent to professors Ed Felten and Andrew Appel was apparently accompanied by a two-page letter to Union County, New Jersey, Clerk Joanne Rajoppi, who originally discovered a tally failure in Sequoia's AVC Advantage touch-screen voting machines after the February 5th Super Tuesday election. The same error was subsequently discovered in at least five other counties.

Mercer County Clerk Paula Sollami-Covello tells the New Jersey Times that Sequoia's decision to block an independent analysis of its touch-screen voting machines makes no sense if the firm is confident that they work properly.

"I think it's unfortunate that they're not letting an independent investigation take place," Sollami-Covello tells the paper this morning. "They should have no problem with having a third party investigate the product if they are confident in their product."

Another Mercer County, NJ, official sent a letter to the state Attorney General criticizing Sequoia's bizarre explanation for failures discovered in the systems following state's recent Primary Election, characterizing what he describes as the company's "strange, confusing solution." He said the company's explanation for the problem, which succeeded in blaming voters and poll workers as usual, was based on a "bizarre scenario, with no cited evidence or testimony" to back it up.

While NJ's state clerks association had voted unanimously to recommend that the Attorney General commission an independent study of the machines --- the same ones which will be used across the state of Pennsylvania in next month's key Democratic Primary Election --- Union County's plan to move forward with their own study has been nixed due to the legal threats sent from Sequoia's VP of "Compliance/Quality/Certification" Edwin Smith, according to a number of New Jersey papers today.

Amazingly (or perhaps, not so much at this point), Union County's attorneys folded to the pressure from the company, which claimed that Election Officials in NJ --- who spent millions on the voting systems --- are not legally allowed to examine them independently because "the voting machine software is a Sequoia 'trade secret' and cannot be handed over to any third-party."

Fear of a lawsuit from Sequoia, which will also control the state's elections in an upcoming June primary, as well as the November general election, has led to county attorneys backing down from their plans for the time being, unless the state AG jumps in to take action.

In the threatening email from Smith to the Princeton professors sent last Friday, as posted here in full last night, the company executive threatened legal action if a "non-compliant analysis" of their voting systems was carried out. "We will also take appropriate steps to protect against any publication of Sequoia software, its behavior, reports regarding same or any other infringement of our intellectual property," Smith warned.

The Star-Ledger reports the latest, almost mind-numbingly incredible, developments in your democracy, now fully and completely in the hands of privatized corporate America, this morning...

-- Brad Friedman

Sequoia Voting Systems has sent a legal threat to Princeton University computer science professors Ed Felten and Andrew Appel warning them of legal action should they proceed with an analysis of New Jersey's touch-screen voting machines as unanimously recommended last week by an association representing election clerks across the state.

In a terse email sent last Friday, obtained today by The BRAD BLOG, Sequoia's Edwin Smith, Vice-President of Compliance/Quality/Certification, warns the university academics that the company has "retained counsel to stop any infringement of our intellectual properties, including any non-compliant analysis."

"We will also take appropriate steps to protect against any publication of Sequoia software, its behavior, reports regarding same or any other infringement of our intellectual property," Smith threatens.

The email from Smith to Felten and Appel is posted in full at the end of this article. Felten has confirmed its authenticity late this afternoon.

The call by state election officials for the independent study of Sequoia's AVC Advantage touch-screen machines comes in the wake of a recent finding that the systems mistallied voter turnout totals across at least six different counties in New Jersey's February 5th Presidential Primary Election. During a post-election canvass, it was found that the number of voters for each party, as reported by the internal printouts on the electronic voting machines, failed to match totals on the internal memory cards inside the same systems in a number of instances across the state.

Sequoia's explanation for the problem, essentially blaming voters and poll workers for pushing a complicated series of buttons, was found lacking by the state election clerks.

The discovery of mistallies followed on previous embarrassment for Sequoia and New Jersey when several machines failed to boot up at all on the morning of the Super Tuesday Election, causing a 45-minute delay for NJ's Governor John Corzine before he was finally able to cast a vote at his polling place in Hoboken.

The very same Sequoia AVC Advantage systems which failed in New Jersey, will be used across Pennsylvania in that state's upcoming --- and rather important --- Primary Election next month.

Sequoia has good reason to be concerned about what may come of an analysis by professors Felten and/or Appel. Both of them have previously detailed major voting machine security flaws, and the ability to easily hack into such systems made by both Sequoia and Diebold Election Systems...

Guest Blogged by John Gideon of VotersUnite.Org

The Newark Star-Ledger is reporting that New Jersey election officials have found a discrepancy in the state's Primary Election results as reported on the Direct Recording Electronic (DRE) voting machines used on Super Tuesday. Voter totals reported by the internal paper tapes on their Sequoia AVC Advantage DRE in a number of counties are failing to match up with totals found on the memory cartridges, used for both ballot definition and results storage, on the same machines, according to the report today...

Problems with Sequoia's AVC Advantage systems also emerged early on the morning of Super Tuesday, forcing a 45 minute delay for the state's Governor, who was unable to cast his vote when the machines failed to boot up on Election Day. In February of last year, the same machines were hacked by a Princeton University Professor after he'd been able to purchase a number of the $8000 systems for just $86 apiece on the Internet.

The Star-Ledger today goes on to report some of the details on the latest failures now emerging in New Jersey during the state's post-election canvassing...

Blogged on the fly by John Gideon, VotersUnite.Org

The Associated Press is reporting that the two Sequoia AVC Advantage touch-screen voting machines at the Hoboken Fire Department Engine Company No. 2 on Washington Street would not work for about 45 minutes as the polls opened this morning. This polling place just happens to be the location where New Jersey Governor John Corzine votes, or was at least scheduled to at 6:15am. He was unable to cast his vote until 7:00am according to the reports.

AP notes that several voters were turned away this morning until they were able to get one of the machines working. Fox "News" reported earlier that there were no provisional ballots at the poll site, so voters had no choice but to wait for the machines to be fixed or to choose not to vote at all.

Update by Brad Friedman flying in...

Sign of the times?...

Just announced this morning and reported by The New Jersey Star-Ledger is the news that a state judge has given the state Attorney General eight days to report an alternate means of voting to the state's 10,000 touch-screen machines.

The ruling undoubtedly comes as an embarrassment to Congressman Rush Holt of New Jersey, who has been championing an Election Reform bill in the U.S. House that would allow for the very voting systems the judge in his own state has now disallowed.

A commenter over at DU asked which states used the ES&S iVotronic touch-screen voting system found vulnerable to an undetectable countywide vote-flipping virus which can be implanted by a single person, as we reported this morning.

Based on our quick review of a county-by-county database of voting systems, sorted by state, as made available by Common Cause (EXCEL spreadsheet downloadable here) just prior to the November 2006 elections, it looks like the answer is 16 states in total.

Since the EAC refuses, as our report detailed, to do their job in notifying Elections Officials about this incredibly serious vulnerability, it looks like it's up to you to notify your state's Secretary of State and/or county Election Officials! Details on the vulnerability and mitigating steps that may be taken are detailed in this brief report at VotersUnite.org as written by a computer scientist and voting system expert well familiar with the newly discovered flaw. Please refer your voting officials to both our original article, and that scientific report for more details at the following URLs:

• https://bradblog.com/?p=4396
• http://www.votersunite.o.../ES&SInsecurity.asp

The states which use the ES&S iVotronic affected (with firmware versions either 8 or 9, with or without a so-called "Voter Verified Paper Audit Trail") are as follows:

• Arkansas
• Florida
• Indiana
• Iowa
• Kansas
• Kentucky
• Missouri
• New jersey
• North Carolina
• Ohio
• Pennsylvania
• South Carolina
• Tennessee
• Texas
• West Virginia
• Wisconsin

If we've missed any, or any of the states above do not use the system in at least one county, please let us know and we'll amend the list.

The BRAD BLOG and You - Doing the EAC's job for them. But without the $15 million budget (or the incomprehensible incompetence).

Guest Blogged by John Gideon, with additional reporting by Brad Friedman

"We can take a version of Sequoia's software program and modify it to do something different --- like appear to count votes, but really move them from one candidate to another. And it can be programmed to do that only on Tuesdays in November, and at any other time. You can't detect it," Princeton's Professor of Computer Science Andrew Appel explains in New Jersey's Star-Ledger today.

Like Diebold's touch-screen machines before them, Sequoia's voting machines have now been found to be hackable in seconds by a Princeton University professor who says the systems could be "easily...rigged to throw an election." Someone may wish to let the folks in Riverside County, CA, know since County Supervisors there recently issued a "thousand to one" bet that their Sequoia voting systems couldn't be manipulated.

In the same report, it was revealed that an attorney has filed suit, claiming the Sequoia AVC Advantage Direct Recording Electronic (DRE) voting machines used in 18 of New Jersey's 21 counties were never reviewed by the state before they were improperly certified for use and that Princeton's Appel was able to acquire five Sequoia voting machines for only $86. The same machines were recently purchased by the state for $8,000 apiece.

According to the Star-Ledger...

Venetis argues that the state certification is in violation of NJ state law which says such systems must "correctly register and accurately count all votes cast," be "of durable construction" to be used "safely, efficiently, and accurately."

The lack of documentation and testing, however, is hardly the only problem, as reported by the paper today. "Had the machines been tested," Election Integrity advocates have found, "they would have proved to be a hacker's dream."

Princeton Computer Science Professor Andrew Appel revealed that he bought 5 of the Advantage voting machines from an on-line government equipment clearinghouse for a total of $86. Virtually identical machines were bought in 2005 by Essex County New Jersey for $8,000 per machine.

"Appel had to submit only minimal personal information and a cashier's check to close the deal," the Star-Ledger reports. He and his team then put the 5 machines to good use...