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---
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category: "PROMIS Scandal"
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tags:
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- Person
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- CharlesDocter
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- PROMIS
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- INSLAW
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- Bankruptcy
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alias:
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- Charles A. Docter
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- Charles Deeter
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summary: "INSLAW's bankruptcy counsel who told the House Judiciary Committee that in July 1987 the former bankruptcy judge Roger Whelan threatened to organize opposition to Judge Bason's reappointment over an unpaid fee petition."
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location: "Washington, D.C."
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created: 2026-09-22
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updated: 2026-09-22
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---
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Charles A. Docter, of the Washington firm Docter, Docter and Salus, was bankruptcy counsel to [[INSLAW]] as debtor in possession in its Chapter 11 case in the [[United States Bankruptcy Court for the District of Columbia]], No. 85-00070, alongside [[Charles R. Work]] of McDermott, Will and Emery. His partner Stanley Salus handled the company's complaint to the United States Trustee, [[William White]], after the [[Jack Rugh]] telephone call to [[Gregory McKain]] in February 1985.[^1]
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### The Whelan Conversation
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Docter told the [[House Committee on the Judiciary]] that in July 1987, two months before Bankruptcy Judge [[George Francis Bason, Jr.|George Bason]] ruled that the [[Department of Justice]] had taken [[PROMIS]] by fraud, [[Roger Whelan]], the bankruptcy judge Bason had succeeded and by then a practicing attorney with a fee application pending before Bason in the [[United Press International|UPI]] bankruptcy, came to his office and threatened to oppose Bason's reappointment because Bason had not ruled on the petition, saying that Senior District Judge Irwin Gasch would organize the opposition. Docter told Bason of the conversation and recommended that he act promptly; Bason ruled on the fee application on July 17, 1987. Docter gave his account to the committee in private session. When the special counsel [[Nicholas J. Bua]] sought more, "Docter referred us to his testimony before the House Committee, but refused to provide us any additional information." Whelan denied to Bua that he had ever spoken to Docter about the UPI case or tried to pressure Bason, while acknowledging his friendship with Gasch and his frustration at the delay. Bua wrote that he had "not attempted to resolve this seeming disagreement," which bore only tangentially on whether the department had influenced the merit selection panel, but added that "the possibility of concerted opposition to Bason by district court judges or others might explain why he was not reappointed." The panel, chaired by Judge [[Norma H. Johnson]], had received the transcript of Bason's ruling from [[Royce Lamberth]].[^1]
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### Footnotes
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[^1]: U.S. Department of Justice. *Report of Special Counsel Nicholas J. Bua to the Attorney General of the United States Regarding the Allegations of Inslaw, Inc.,* March 1993, pp. 169-170, 211-214. https://archive.org/details/InslawPROMISBuaReport (which spells the name Docter throughout; "Deeter" in later accounts is a transcription error). The firm's role as counsel of record appears in the reporter listings for *In re INSLAW, Inc.,* 97 B.R. 685 and 106 B.R. 331 (Bankr. D.D.C. 1989), not examined.
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@ -9,7 +9,7 @@ summary: "Cornelius Blackshear was a U.S."
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Cornelius Blackshear was a U.S. Trustee in the Southern District of New York who later became a U.S. Bankruptcy Court Judge for the Southern District of New York. He became a key figure in the allegations surrounding the attempted conversion of [[INSLAW|Inslaw]]'s bankruptcy case and a subsequent alleged cover-up.
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Blackshear initially testified in a deposition on March 25, 1987, that [[Philip White]], the U.S. Trustee for the District of Columbia, had told him that [[Thomas Stanton]], Director of the Executive Office of U.S. Trustees (EOUST), had tried to pressure White to convert [[INSLAW]]'s Chapter 11 reorganization to a Chapter 7 liquidation and to have [[Harry Jones]] assigned to White to effect the conversion. Blackshear also stated that Stanton had never contacted him about detailing Jones, but he thought Stanton might have approached Jones directly. This testimony supported Inslaw's primary allegation of a plot to liquidate the company. However, after speaking with White, Blackshear realized he was mistaken and had confused Inslaw with the UPI case, about which White had told him the IRS had pressured him to join a motion to convert. Blackshear then prepared and signed an affidavit recanting his deposition testimony, stating that he had confused the cases. He also gave a second deposition repeating his new recollections. During the Office of Professional Responsibility (OPR) investigation, Blackshear essentially repeated his recanting statements, maintaining that White had not told him Stanton pressured him to convert Inslaw, and that he had confused Inslaw with UPI. He did, however, disagree with White regarding a conversation about the possible assignment of Harry Jones to Washington, believing White had told him Stanton planned to bring Jones to Washington, while White maintained Blackshear told this to White. Blackshear also denied discussing with [[Anthony Pasciuto]] at a social gathering that he was sorry for his conduct or had given false testimony in his recantation to avoid hurting people.[^1]
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Blackshear initially testified in a deposition on March 25, 1987, that [[William White]], the U.S. Trustee for the District of Columbia, had told him that [[Thomas Stanton]], Director of the Executive Office of U.S. Trustees (EOUST), had tried to pressure White to convert [[INSLAW]]'s Chapter 11 reorganization to a Chapter 7 liquidation and to have [[Harry Jones]] assigned to White to effect the conversion. Blackshear also stated that Stanton had never contacted him about detailing Jones, but he thought Stanton might have approached Jones directly. This testimony supported Inslaw's primary allegation of a plot to liquidate the company. However, after speaking with White, Blackshear realized he was mistaken and had confused Inslaw with the UPI case, about which White had told him the IRS had pressured him to join a motion to convert. Blackshear then prepared and signed an affidavit recanting his deposition testimony, stating that he had confused the cases. He also gave a second deposition repeating his new recollections. During the Office of Professional Responsibility (OPR) investigation, Blackshear essentially repeated his recanting statements, maintaining that White had not told him Stanton pressured him to convert Inslaw, and that he had confused Inslaw with UPI. He did, however, disagree with White regarding a conversation about the possible assignment of Harry Jones to Washington, believing White had told him Stanton planned to bring Jones to Washington, while White maintained Blackshear told this to White. Blackshear also denied discussing with [[Anthony Pasciuto]] at a social gathering that he was sorry for his conduct or had given false testimony in his recantation to avoid hurting people.[^1]
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Bankruptcy Judge Bason, in his findings, chose to believe Blackshear's original testimony and found his recantation to be the result of an "honest mistake." However, several years later, in January 1991, Bason filed a complaint against Blackshear with the Judicial Council of the Second Circuit Court of Appeals, stating that he now believed Blackshear recanted not due to an honest mistake but because he made a conscious choice to testify falsely. The OPR, however, credited Blackshear's recantation, noting that he had no apparent motive to lie about the matter. The Senate Permanent Subcommittee on Investigations (PSI) found Blackshear's recantation implausible, noting that he had stated on four occasions prior to his recantation that White told him about pressure from Stanton to convert the Inslaw case. The PSI also found no evidence to support Blackshear's explanation that he had confused Inslaw with the UPI case. The Special Counsel's investigation concluded that there was insufficient evidence to prove that Blackshear lied when he recanted his deposition testimony. The report acknowledged the confusion arising from Blackshear's various statements but attributed it to poor memory rather than intentional misstatements. The Special Counsel found no reason why Blackshear, a sitting bankruptcy judge, would commit perjury and jeopardize his career.[^1]
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@ -32,7 +32,7 @@ The theory held that a core group of intelligence operatives, arms dealers, and
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His primary source was [[Michael Riconosciuto]], a computer scientist and self-described CIA contractor who claimed he had modified PROMIS software at the [[Cabazon Indian Reservation|Cabazon]]-[[Wackenhut Corporation|Wackenhut]] joint venture in Indio, California, and that [[Earl Brian]] had distributed the modified software internationally with DOJ cooperation. Casolaro began interviewing Riconosciuto before Riconosciuto's March 1991 arrest on methamphetamine charges.[^1] Other key contacts included [[Robert Booth Nichols]], an international operative with alleged ties to the [[NSC]], organized crime, and the [[Yakuza]], with whom Casolaro spent hundreds of hours on the phone.[^1]
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Casolaro's investigation also touched the Wackenhut-Cabazon weapons venture, [[Central Intelligence Agency|CIA]] "Old Boy" networks involved in drug trafficking since the 1950s, the death of journalist and BCCI investigator Alan Standorf, and alleged connections between former DOJ official [[Michael Abbell]] and the [[Cali Drug Cartel]].[^1][^3] Shortly before his death, Riconosciuto had passed Casolaro a lead about Abbell's Cali connections, warning it might be dangerous. Hamilton, pressed for time, turned the lead over to Casolaro.[^1]
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Casolaro's investigation also touched the Wackenhut-Cabazon weapons venture, [[Central Intelligence Agency|CIA]] "Old Boy" networks involved in drug trafficking since the 1950s, the death of the Army signals-intelligence officer and BCCI source [[Alan Standorf]], and alleged connections between former DOJ official [[Michael Abbell]] and the [[Cali Drug Cartel]].[^1][^3] Shortly before his death, Riconosciuto had passed Casolaro a lead about Abbell's Cali connections, warning it might be dangerous. Hamilton, pressed for time, turned the lead over to Casolaro.[^1]
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### Final Days
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---
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category: "PROMIS Scandal"
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category: "Business & Finance"
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tags:
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- Person
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- PROMIS
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summary: "Egyptian multi-millionaire film producer and son of Mohammed Al-Fayed, romantically involved with Princess Diana; died with her in a 1997 Paris car crash."
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born: 1955-04-15
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died: 1997-08-31
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@ -51,7 +51,11 @@ The Bua Report found no credible evidence to support the Iran trip allegation. E
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Both Brian and Videnieks categorically denied ever meeting one another or meeting Riconosciuto, denied having visited Indio, California, and denied any involvement in the alleged PROMIS distribution. The Bua Report found both men to be credible witnesses and concluded there was "overwhelming" evidence of no connection between Brian and anything related to INSLAW or PROMIS. Bua found Riconosciuto's account a "tale of total fiction woven against the background of accurate historical facts" and Ben-Menashe's affidavits contradicted by his own subsequent testimony to Bua investigators.[^2]
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Brian was never charged with any crime in connection with the PROMIS affair.
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Brian was never charged with any crime in connection with the PROMIS affair. His libel suit against [[Elliot Richardson]] over the former attorney general's New York Times article of October 21, 1991, "A High-Tech Watergate," which accused him of taking part in an illegal conspiracy, was dismissed; the New York Court of Appeals held on November 29, 1995, that because Richardson had disclosed at the outset that he was INSLAW's own lawyer, because the article's "predominant tone" was "rife with rumor, speculation and seemingly tenuous inferences," and because its purpose was to call for an independent investigation, "a reasonable reader would understand the statements... as mere allegations to be investigated rather than as facts."[^5]
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### Financial News Network and UPI
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In July 1993 the Securities and Exchange Commission charged Brian and three others with fraudulently inflating the revenue and earnings of the Financial News Network, the Los Angeles cable channel controlled with United Press International by his holding company Infotechnology, Inc.; he settled without admitting or denying the charges and consented to a permanent injunction. A federal grand jury in the Central District of California returned a 24-count indictment in June 1994, unsealed on September 5, 1995, charging Brian, then Infotechnology's chairman, and its chief operating officer John F. Berentson with lying to obtain 56 million dollars in loans from Security Pacific and Toronto-Dominion in 1989 by falsifying FNN's books through fictitious equipment leases and inter-company billings; FNN's chief financial officer C. Steven Bolen and Gary A. Prince pleaded guilty and cooperated. FNN, which lost 72.4 million dollars in fiscal 1990, and UPI, whose management rights Infotechnology had bought in February 1988, both entered Chapter 11 in 1991. On October 17, 1996, after a four-month trial in Los Angeles, a jury convicted Brian on ten counts including conspiracy and bank and securities fraud, deadlocking on the rest; he was ordered to report to prison on August 18 of the following year to serve a term reported as four and a half years, and appealed. Hadron continued as a public company, was renamed Analex Corporation in 2002 and ceased reporting in 2007.[^6]
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### Footnotes
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[^2]: U.S. Department of Justice. *Report of Special Counsel Nicholas J. Bua to the Attorney General of the United States Regarding the Allegations of Inslaw, Inc.* March 1993.
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[^3]: Seymour, Cheri. *The Last Circle: Danny Casolaro's Investigation into the Octopus and the PROMIS Software Scandal.* TrineDay, 2010.
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[^4]: U.S. Senate, Permanent Subcommittee on Investigations. *The Inslaw Affair.* September 1989.
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[^5]: *Brian v. Richardson,* 87 N.Y.2d 46, 660 N.E.2d 1126 (N.Y. 1995). https://www.law.cornell.edu/nyctap/I95_0246.htm
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[^6]: "Former UPI execs charged with fraud," United Press International, September 6, 1995. https://www.upi.com/Archives/1995/09/06/Former-UPI-execs-charged-with-fraud/3824810360000/ ; Gersh, Debra, "SEC Accuses Former UPI Chief of Fraud," *Editor & Publisher,* July 10, 1993 (headline and date only); Fricker, Richard L., "Earl Brian: Reagan's 'Scandal Man' Off to Jail," *The Consortium,* 1997. https://www.consortiumnews.com/archive/xfile11.html ; Securities and Exchange Commission, EDGAR filing history for Hadron, Inc., CIK 0000044800. Fricker gives the reporting date as "Aug. 18" without a year; the sentencing order and the disposition of the appeal were not located.
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@ -14,7 +14,7 @@ George Francis Bason Jr. was appointed to the Bankruptcy Court for the District
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### The Independent Handling Proceeding (June 1987)
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In June 1987, after INSLAW filed for independent handling of its bankruptcy case on the grounds that the DOJ could not be trusted to administer it fairly, Bason found that DOJ had "unlawfully, intentionally and willfully" attempted to convert INSLAW's Chapter 11 reorganization into a Chapter 7 liquidation "without justification and by improper means." The ruling was based partly on testimony from Anthony Pasciuto, Deputy Director of the Executive Office of U.S. Trustees, who initially stated that DOJ Director Thomas Stanton had pressured U.S. Trustee [[Edward White]] to force the company into liquidation. Bason also found that Stanton had struck a bargain with [[C. Madison Brewer]] to achieve this conversion.[^1]
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In June 1987, after INSLAW filed for independent handling of its bankruptcy case on the grounds that the DOJ could not be trusted to administer it fairly, Bason found that DOJ had "unlawfully, intentionally and willfully" attempted to convert INSLAW's Chapter 11 reorganization into a Chapter 7 liquidation "without justification and by improper means." The ruling was based partly on testimony from Anthony Pasciuto, Deputy Director of the Executive Office of U.S. Trustees, who initially stated that DOJ Director Thomas Stanton had pressured U.S. Trustee [[William White]] to force the company into liquidation. Bason also found that Stanton had struck a bargain with [[C. Madison Brewer]] to achieve this conversion.[^1]
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### The Adversary Proceeding (September 1987)
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---
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category: "PROMIS Scandal"
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category: "Intelligence & Government"
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tags:
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- Person
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- PROMIS
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- CIA
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summary: "CIA officer who developed contacts with international arms merchant Adnan Khashoggi, factotum for the House of Saud."
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born: 1917-01-30
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---
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category: "PROMIS Scandal"
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category: "Business & Finance"
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tags:
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- Person
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- PROMIS
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summary: "Father of Dodi Fayed and husband of Samira Khashoggi Fayed, connected to the PROMIS investigation through his son's death."
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born: 1929-01-27
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died: 2023-08-30
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In 1991, investigative journalist [[Seymour Hersh]] published *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy,* which included allegations based primarily on accounts by Israeli intelligence operative [[Ari Ben-Menashe]]. Hersh alleged that Davies had been recruited as a [[Mossad]] asset in the early 1980s through contacts in London and a subsequent visit to Israel.[^2]
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Ben-Menashe stated that Davies and he became business partners in an international arms firm, Ora Limited, operating out of Davies's home in London beginning in 1983. The firm allegedly functioned to facilitate the flow of Israeli arms to Iran during the [[Iran-Iraq War]], a channel that ran parallel to the operations later associated with the [[Iran-Contra Affair]]. Ben-Menashe claimed Davies made more than $1.5 million from a single arms transaction.[^2]
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Ben-Menashe stated that Davies and he became business partners in an international arms firm, [[Ora Group|Ora Limited]], operating out of Davies's home in London beginning in 1983. The firm allegedly functioned to facilitate the flow of Israeli arms to Iran during the [[Iran-Iraq War]], a channel that ran parallel to the operations later associated with the [[Iran-Contra Affair]]. Ben-Menashe claimed Davies made more than $1.5 million from a single arms transaction.[^2]
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The most specific allegation was that Davies passed [[Mordecai Vanunu|Mordechai Vanunu]]'s location to Mossad operatives, enabling the 1986 honey-trap operation in Rome that led to Vanunu's abduction and return to Israel for trial on nuclear secrets charges.[^3]
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Patricia Cloherty worked for [[Patricof and Company]] in New York from about 1970 until 1977, when she was appointed by President [[Jimmy Carter|Carter]] to be Deputy Administrator of the [[Small Business Administration]] (SBA). After leaving the SBA around 1980, she worked at Tessler & Cloherty, Inc., an investment management company she ran with her husband, [[Daniel Tessler]]. In February 1988, Cloherty returned to Patricof and Company.
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Cloherty's involvement with [[INSLAW|Inslaw]] began in 1984 when she and her husband took over management of 53rd Street Ventures, which had a small investment in [[INSLAW|Inslaw]]. [[Bill Hamilton]]'s affidavit alleged that Cloherty told [[Richard D'Amore]] that she "knew all about" [[Earl Brian]]'s role in the Inslaw matter. However, Cloherty denied ever making such a statement to D'Amore or anyone else. She maintained that she knows nothing about Earl Brian's connection, if any, to Inslaw. She stated that she knows Earl Brian, having met him in the 1980s when they both served on the board of the National Association of Small Business Investment Companies. In 1990, Brian contacted Patricof and Company with a deal proposal regarding UPI, but Cloherty did not meet with him directly, and the firm decided not to pursue the deal. Cloherty stated she has never heard of and has had no involvement with Hadron or Simeon, and does not know [[Dominic Laiti]], [[Edwin Meese]], or [[Lowell Jensen]]. She denied discussing 53rd Street Ventures' investment in Inslaw with Brian, Jensen, Meese, Laiti, or any officials from the DOJ or the Reagan or Bush administrations. The Special Counsel's investigation found no credible evidence to support Hamilton's claims regarding Cloherty's knowledge of a conspiracy.[^1]
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Cloherty's involvement with [[INSLAW|Inslaw]] began in 1984 when she and her husband took over management of [[53rd Street Ventures]], which had a small investment in [[INSLAW|Inslaw]]. [[Bill Hamilton]]'s affidavit alleged that Cloherty told [[Richard D'Amore]] that she "knew all about" [[Earl Brian]]'s role in the Inslaw matter. However, Cloherty denied ever making such a statement to D'Amore or anyone else. She maintained that she knows nothing about Earl Brian's connection, if any, to Inslaw. She stated that she knows Earl Brian, having met him in the 1980s when they both served on the board of the National Association of Small Business Investment Companies. In 1990, Brian contacted Patricof and Company with a deal proposal regarding UPI, but Cloherty did not meet with him directly, and the firm decided not to pursue the deal. Cloherty stated she has never heard of and has had no involvement with Hadron or Simeon, and does not know [[Dominic Laiti]], [[Edwin Meese]], or [[Lowell Jensen]]. She denied discussing 53rd Street Ventures' investment in Inslaw with Brian, Jensen, Meese, Laiti, or any officials from the DOJ or the Reagan or Bush administrations. The Special Counsel's investigation found no credible evidence to support Hamilton's claims regarding Cloherty's knowledge of a conspiracy.[^1]
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### Footnotes
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@ -40,9 +40,19 @@ Eitan stated regarding PROMIS: "We can use that program to stamp out terrorism b
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Distribution of the backdoored software was handled in part through British media mogul [[Robert Maxwell]], who used his Israeli computer company [[Degem]] and a network of international holdings as vehicles for sales to intelligence and law enforcement agencies worldwide.[^2] Eitan's involvement in what became known as the [[PROMIS Software Scandal]] was never formally adjudicated; U.S. government investigations, including the [[Nicholas J. Bua|Bua Report]] (1993), found no credible evidence that enhanced PROMIS was distributed internationally.[^4]
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### Dr. Ben Orr
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The documentary trace of an Israeli visitor to the [[Department of Justice]] is two memoranda of [[Jack Rugh]], the department's deputy project manager on the [[INSLAW]] contract. On May 6, 1983, Rugh wrote that "Brick Brewer recently instructed me to make a copy of an LEAA version of PROMIS available to Dr. Ben Orr, a representative of the Government of Israel. Dr. Orr called me to discuss that request... I have made a copy of the LEM DEC version of PROMIS and will provide it, along with the corresponding documentation, to Dr. Orr before he leaves the United States for Israel on May 16," and on May 12 he recorded delivery of the materials to [[C. Madison Brewer]] for transmittal. The version so recorded was the public-domain [[LEAA]] one. Eitan, in the account he gave Thomas and Dillon, was Dr. Orr, travelling on a forged passport in the identity of a real retired prosecutor, "Dr Benjamin Orr, an assistant public prosecutor in the Ministry of Justice in Tel Aviv," who first flew to the United States on December 19, 1982, met Brewer, and returned in February 1983 to be shown the enhanced PROMIS at INSLAW's own offices by [[Bill Hamilton]] and [[Nancy Hamilton]], after which Brewer handed him a tape from an office cupboard; Hamilton is quoted recalling eyes "like a computer, tracking everything."[^5]
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### Later Career
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Eitan founded the Pensioners' Party, Gil, which won seven Knesset seats in March 2006 and joined [[Ehud Olmert]]'s coalition, in which he served as minister for pensioner affairs; in October 2008 he told a German magazine that Iran's president should be kidnapped and tried at The Hague. Of the Eichmann capture he told Gordon Thomas that "almost every published fact about the capture of Eichmann is pure bullshit. I know because I personally am the man who captured him."[^6]
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### Footnotes
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[^1]: Hersh, Seymour M. *The Samson Option: Israel's Nuclear Arsenal and American Foreign Policy*. Random House, 1991. Chapter 21.
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[^2]: Thomas, Gordon. *Gideon's Spies: The Secret History of the Mossad.* St. Martin's Press, 1999.
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[^3]: U.S. House of Representatives, Committee on the Judiciary. *The INSLAW Affair: Investigative Report.* House Report 102-857, 102nd Congress, 2nd Session, September 10, 1992.
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[^4]: U.S. Department of Justice. *Report of Special Counsel Nicholas J. Bua to the Attorney General of the United States Regarding the Allegations of Inslaw, Inc.* March 1993.
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[^4]: U.S. Department of Justice. *Report of Special Counsel Nicholas J. Bua to the Attorney General of the United States Regarding the Allegations of Inslaw, Inc.* March 1993.
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[^5]: House Report 102-857, September 10, 1992, reproducing Rugh's memoranda of May 6 and 12, 1983, which do not identify Dr. Orr; Thomas, Gordon, and Martin Dillon, *Robert Maxwell, Israel's Superspy,* Carroll and Graf, 2002. https://archive.org/details/robert-maxwell-israels-superspy-2002 The February 1983 visit in the book and the May 1983 transfer in the memoranda are not the same transaction, and no record reconciles them.
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[^6]: Thomas, Gordon. *Gideon's Spies,* 2009 edition. https://archive.org/details/gideons-spies
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---
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category: "PROMIS Scandal"
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category: "Political Figure"
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tags:
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- Person
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- PROMIS
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- CIA
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summary: "Powerful West Virginia Democratic Senator whose executive assistant was Barbara Videnieks, wife of PROMIS figure Peter Videnieks."
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born: 1917-11-20
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---
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category: "PROMIS Scandal"
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category: "Historical Figure"
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tags:
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- Person
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- PROMIS
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summary: "Sister of Adnan Khashoggi and mother of Dodi Fayed, connected to the Khashoggi family's arms dealing network."
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born: 1935
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died: 1986
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