ACLU Reveals Secret Suit Over FBI Powers

ACLU Reveals Secret Suit Over FBI Powers
Wed Apr 28
By Gail Appleson

NEW YORK (Reuters) - The American Civil Liberties Union (news - web sites) disclosed on Wednesday it had secretly sued the government over a provision of the Patriot Act that allows the FBI to demand customer records from businesses without court approval.

The ACLU said it initially filed the civil lawsuit under seal on April 6 because it could have been prosecuted for violating a gag order contained within the Patriot Act. It said it chose to make the case public after the government agreed on Wednesday it would not seek a penalty against the ACLU. But many details of the case, filed in Manhattan federal court, must remain secret.

The defendants include Attorney General John Ashcroft and FBI Director Robert Mueller. A spokesman for the Manhattan U.S. attorney's office had no comment.

At issue is the power the FBI has to execute what is known as a "National Security Letter," a form of administrative subpoena used to demand confidential financial records from companies as part of terrorism investigations.

Legislation signed by President Bush in December expands the definition of companies from which information can be obtained and allows FBI agents to send out the letters without first obtaining a judge's approval.

"The National Security Letter provision allows the FBI to demand the sensitive records of innocent people in complete secrecy, without ever appearing before a federal judge," said Jameel Jaffer, an ACLU staff attorney.

"Before the Patriot Act, the FBI could use this invasive authority only against suspected terrorists and spies," Jaffer said. "Now it can issue National Security Letters to obtain information about anyone at all. This should be disturbing to all of us."

The suit argues that the National Security Letter provision violates the constitution because it authorizes the FBI to force disclosure of sensitive information without adequate safeguards.

The FBI no longer has to show a judge there is a compelling need for the records and it does not have to specify any process that would allow a recipient to fight the demand for confidential information.

Prior to December, the letters could only be sent to certain financial institutions. However, the definition of "financial institution" in the new law is expanded to include such businesses as insurance companies, pawnbrokers, dealers in precious metals, the Postal Service, casinos, and travel agencies.

The law also bars subpoenaed businesses from revealing to anyone, including individuals who may be under investigation, that the FBI sought records of their transactions or that businesses have turned over their records. A company faces criminal penalties if it breaches the gag order.