Observing better than Sarah L. Winchester is an industrial spy’s greatest asset, for as the master of detection would agree, mere seeing never catches the latent truth. By observing, the spy penetrates beyond the surface meaning of people, places, events, or things. To further highlight this illustration, a tourist visiting The Winchester Mystery House does not give much thought to the parking lot on the side of the mansion’s exterior. A trained intelligence specialist counts the number of parking spaces. He or she notes whether drivers park vehicles outside the existing lot’s bounds, and the number of people around, and also what they are doing. Furthermore, this parking lot may be considered an overflow space and may in the future be used to expand the building. Additionally, the expert may approximate a rough idea of the incomes the business generates derive from mentally averaging the workers’ vehicles’ years and by nothing the vehicles’ makes. Do the same for the managers’ vehicles. (Managers’ vehicles have reserved spots next to the plant’s exterior walls.) Furthermore, including the automobiles, the intelligence gather will record the arrivals and departures of commercial trucks. The trucks’ logos reveal the identities of suppliers and vendors. And, the pace of commercial traffic may indicate the tempo of production at the facility. Jotting down license plate numbers from the management parking spaces assists in identifying who those people are. Such information, tying the person to their vehicle, may be useful in latter surveillance. The markings on boxes and crates stored outside of the facility often yields clues on what materials or parts the manufacturing processes use. #RandolphHarris 1 of 17

In other words, trained eyes learn a great deal about a business even before they enter the doors. Wait a minute, you say, and point out that none of what has been described above is illegal. If it is not illegal, why is it spying? Whether an activity is legal or ethical or even socially acceptable really does not mean much. If your proprietary secrets leak out legally, you client still has lost an asset. While intelligence specialists may spend many hours debating what is permissible business intelligence and what is industrial espionage, we do not have time to waste performing a witch hunt of the commercial intelligence community. The smart ones realize legal boundaries exist, and they wisely stay behind them by using legal and, depending upon one’s definition, ethical methods. However, as a security professional, you need to look at the information security issues from all perspectives. The criminals you will work to catch and prosecute. Your client may seek criminal and civil remedies against the parties that hired them. The other you will try to block in every legitimate way you can. Just because they agree not to break the law or to violate obvious ethical standards does not equate to them being entitled to your sensitive information. If the information were easy to get, their clients would not hire them to do the business of intelligence work. And, you are allowed to cloak and hide (by legal means) as much as you can from these people. Some corporations even after running background checks on their employees have them further investigated. To see what they are doing on the free time, who they interact with, if they are in danger and what kind of places they visit. #RandolphHarris 2 of 17

When I was a teenager, I was shopping for cars. I went to the BMW lot and there were a lot of sedans. My boss said, “Those BMW coupes are hot, huh?” At the time, I did not understand the laws of supply and demand. I replied, “I don’t know. I see a lot of sedans on the lot.” He then says, “That is what I mean. They are all sold out.” Then I understood. If a product is in short supply, it means demand is extremely high. It does not mean that there is no demand for the other products, just they there may be more of them and the demand may not be as high. A factory tour takes several forms. An industrial spy may simply walk into a plant, which has low security, posing as a prospective employee, a graduate student writing a research paper, a utility meter reader, or as a vendor. If construction is occurring at the site, a spy may don a hard hat, work clothes and gloves, and wear a utility belt. By blending in, the operative can wander around the site asking questions, observing, and even taking photographs. The FBI is great at being undercover, but one thing to take note of is they very seldomly ever drink or do drugs, on or off the job. So, if someone is doing drugs or drinking on the job, they are likely a hack, especially if whatever they are pretending to investigate is pretty benign. When greater security exists, the spy may join a public tour of the facility, if available. Sometimes such tours serve up an information buffet for an observant intelligence gather. Doing research beforehand enhances the tour; knowing what to loo for enables the spy to focus in on critical details in limited time. Library and Internet research, interviews with industry experts and former employees, and discussions with suppliers and vendors constitute good preparation. #RandolphHarris 3 of 17

If public tours are not available, the spy may try to join a vendor, or a service provider’s firm, which permits regular access to the premises. The copy machine technician, for example, gets to see a lot, to hear a great deal, and even to handle documents. Effective spes know what they are after. The shopping list usually includes: Identifying parts and materials used in manufacturing. (Also identifying sources of supply.) Understanding industrial processes and manufacturing steps. The amounts of raw materials andfinished goods on hand. Proprietary techniques, formulas, and control systems used. Software and computer systems employed. Production schedules, shifts, and the number of workers employed. The number of workers in each job classification. Production records, reports, lab notes, or engineering reports and drawings. Machinery or equipment used. Physical dimensions and layout of the plant. Physical characteritics of support areas such as incoming roads, railroads, waterways, docks, parking lots, and employee facilities such cafeteria and break areas. Financial records pertaining to manufacture. Marketing records or sales records petrtaing to production or manufacturre. Any production problems at the site. Any construction in progress at the site. Security measures in place at the facility. If the target contains a research facility, then the intelligence effort will seek: Relevant content of research databases. The identity and job description of key research staff. Project plans, descriptions, and progress reports. Research supplies, materials, and equipment used. Project managers’ reports. Costs or cost account records associated with projects. Any prototypes, models, or preproduction goods created by research efforts. And because some corporations know they are being spied on, they may new employees wait several months before see areas of the business that are off limits. This gives them time to do an adequate investigation of staff. #RandolphHarris 4 of 17

Rarely will any of these targets be lying on a desk with large arrows pointing to them saying “Valuable Secrets.” Instead, the industrial spy learns to gather bits and pieces to build the larger picture. One rivets them together into coherent intelligence. You may notice their reports are detailed, including dates and times, which can be back up by facts, and upon even further investigation, more details and instances than they mentioned are discovered, and placed in a discovery file. Constructing the picture defines the craft of intelligence, a passionate endeavor requiring cunning and filled with intellectual challenge. Any good spy is not physical walking around taking note nor recording people with archaic devices. They may not even record anyone at all. Certain types of recordings are illegal anyway, and could be punishable by penal code, and/or inadmissible in court, especially if they are illegal. The security professional’s response demand equal passion and the ability to stretch one’s mind. And another thing to keep in mind, if you gather illegal evidence (which may not be allowed in court), a judge may allow the opposing side to inter into evidence material that is questionable. Often, the inner commitment required struggles against bureaucratic inertia and politics. For example, the company may remain committed to public tours of the plant despite information security risks. Many corporate officers consider such programs good public relations. A resourceful security specialist, thinking and seeing with a hawk’s predatory eye, must develop ways to blunt the spy’s vision and to cloak any clues the tour affords. Intelligence gathering is a continuum. A plant tour may reveal small clues, moderate clues, or big ones. Security’s aim seeks to keep the collection efforts end of the continuum. Defending everything may be impossible or simply not feasible. #RandolphHarris 5 of 17

Keeping any yardage gained to short distances is a reasonable protection strategy. Some information leaks will occur, especially if your business has size and complexity. Placing roadblocks to deter a spy from climbing high on the information tree remain within the real of effective action. A tour of the plant may allow outsiders to see from the established path processing vats and lines on the worker’s side and not on the path’s side reduces any information telegraphed during the tour. Many such cloaking strategies are available and inexpensive; one just needs to see from a rogue’s viewpoint. Walk through your plant with the operations manager, and point out clues a visitor discovers when doing a “friendly tour.” Such a step will build a relationship with management, and it demonstrates that you are paying attention to detail. Espionage is not a game; it is a struggle we must win if we are to protect our freedom and our way of life. Espionage is the World’s oldest profession. Industrial espionage is the theft of trade secrets by the removal, copying, or recording by technical surveillance of a company’s confidential or protected information for use by a competitor or foreign nations. The protected information may include trade secret, client lists, and other non-public information. If a company is working under a U.S.A. government contract that involves U.S.A. classified information at a company’s facility, then that may be the target of industrial espionage. According to the Federal Bureau of Investigation espionage is: whoever knowingly performs targeting or acquisition of trade secrets to knowingly benefit any foreign government, foreign instrumentality, or foreign agent. (Title 18 U.S.C., Section 1831). #RandolphHarris 6 of 17

The Federal Bureau of Investigation defines trade secrets and theft of trade secrets as: Trade secrets are al forms and types of financial, business, scientific, technical, economic or engineering information including patterns, plans, compilations, program devices, formulas, deigns, prototypes, methods, techniques, processes, procedures, programs, or codes whether tangible or intangible, and whether or how stored, compiled, or memorialized physically, electronically, graphically, photographically or in writing, which the owner has taken reasonable measures to protect; and to have an independent economic value. “Trade secrets” are commonly called classified proprietary information, economic policy information, trade information, proprietary technology, or critical technology. The released information, no matter how interesting it is, may not be as fascinating as what a company is keep a secret. Theft or trade secrets occurs when someone knowingly preforms targeting or acquisition of trade secrets or intends to convert a trade secret to knowingly benefit anyone other than the owner. Commonly referred to as industrial espionage. (Title 18 U.S.C., Section 1832). Industrial espionage must not be confused with or compared to competitive intelligence. Competitive intelligence is the legal and ethical activity of systematically gathering, analyzing, and managing information on industrial competitors. This is non-protected information that is collected from open sources such as organizations’ websites, news articles, information presented at trade shows, or company brochures. Competitive intelligence may also include information obtained from public filings such as property records and permits. #RandolphHarris 7 of 17

As previously stated, industrial espionage is not only unethical, but is also a criminal offense under all state criminal statutes and federal law. Over the years, there have been a series of serious industrial espionage cases. One case involved the Avery Dennison Corp, a major United States of America adhesives company, in which company secrets were stolen and sold to Four Pillars, a Taiwanese company that also makes and sells pressure-sensitive production. Another case of corporate espionage was dubbed “Japscam” by the press. Hitachi came into possession of an almost full set of IMB’s Adirondck Workbooks. The workbooks contained IBM design documents and technical secrets that were prominently marked FOR INTERNAL IBM USE ONLY. Hitachi did not return them to IBM. Gillette had a close shave with industrial espionage when company secrets were stolen and offered for sale to a company in the same market. The company reported the attempt to Gillette and an arrest was made of the individual. US Espionage Acs of 1917 was passed to protect the United States of America during a time of war and made it a criminal offense to pass information with intent to interfere with the operation or success of the armed force of the United States of America or to assist the enemies of the United States of America. These offenses were punishable by death or by imprisonment for not more than thirty years of both. Under the US Espionage Act of 1917, it was also an offense to convey false reports or false statements with intent to interfere with the operation or success of the military or naval forces of the United State of America. #RandolphHarris 8 of 17

This also included the promotion of enemies of the United States of America when the country is at war and to cause or attempt to cause insubordination, disloyalty, munity, refusal of duty, in the military or naval forces of the United States of America, or to willfully obstruct the recruiting or enlistment of service of the United States of America. These offenses were punishable by a maximum fine of $10,000 or by imprisonment for not more than twenty years or both. While the Espionage Act of 1917 dealt with espionage and subversion against the United States of America, it did little to provide for the prevention and prosecution of individuals taking part in industrial espionage against private industries. The US Economic Espionage Act of 1996 was passed into law to provide for the prosecution of individuals taking part in industrial or economic espionage and theft of trade secrets that would benefit any foreign government, foreign instrument, or foreign agent. The law specifically addressed trade secrets. An important aspect of the Economic Espionage Acts of 1996 was that it not only allowed for the prosecution of perpetrators, but it also allowed the target company to seek financial reimbursement for losses the organization suffered as a direct result of the theft of trade secrets. This aspect of the law also holds responsible the organization that facilitated, or would have gained from, the industrial espionage and trade secrets stolen from the targeted company. #RandolphHarris 9 of 17

The federal espionage laws deal with the protection of US government’s interests and espionage perpetrated by foreign government, businesses, and agents. To resolve this situation, the Uniform Trade Secrets Act, published by the Uniform Law Commission in 1979 and later amended in 1985, has the goal of providing a uniform act as a legal framework for trade secrets protection for the private industry within the United States of America. The Uniform Trade Secrets Act aimed to codify standards and remedies regarding the misappropriation of trade secrets that emerged in common law on a state-to-state basis. In order to provide for the prosecution of private individuals and organizations without foreign influence, most states have passed industrial espionage laws. Depending on the state where one is located, that state’s laws need to be examined. No matter how many changes our country has experienced in deciding who is an ally and who is an adversary, the role of intelligence gathering has not changed; America’s interests are paramount. And monitoring and helping to protect those interests has been our constant mission for more than sixty years. In the course of fulfilling that mission, we have brought talent, creativity, and even genius to bear in shaping and refining the business of intelligence. Intelligence is a high-risk endeavor—a lot can go wrong. The fact that we have achieved so many successes over the years, even in the face of spectacular failures, attests to the commitment and persistence of the extraordinary men and women who have developed the field-tested practices and techniques that have brought about intelligence breakthroughs. #RandolphHarris 10 of 17

There have been intelligence operations throughout history, but the American services are in many ways the most highly developed intelligence-gathering organizations in the World. And the country’s leadership expects much from our individual intelligence officer in carrying out the challenging requirement assigned to them to serve our country’s intelligence. Economic espionage cost U.S.A. companies $100 billion each year. More than 56 percent of the Fortune 1000 admit to having been victimized, and more than likely, a considerable portion of the other 44 percent are either too reticent to admit or simply have not yet discovered that they, too, have been targeted and/or victimized by corporate spies and thieves. America’s nationwide economic espionage crisis is unique in several respects. It represents the first time a crisis of such mammoth proportion has been acknowledged to affect every company in every industry group without exception and at the same time. Without question, economic espionage is a gargantuan growth industry and one of the biggest crises to hit U.S.A. businesses en masse in history. And in an age of globalization, economic espionage gets bigger and easier to commit every day. When, in 1999, then FBI Director Lousi Freeh called economic espionage the most severe threat to our nation’s security since the Cold War, he went on to claim that U.S.A companies are under constant economic attack from foreign countries, stating that in the mid-1990s, FBI investigation uncovered “23 countries are engaged in economic espionage activity against the United States.” However, Former Congressman Dave McCurdy, who served as chair of the House of Intelligence Committee, thinks Mr. Freeh grossly understated the problem. Mr. McCurdy believes 100 of the World’s 173 nations re actively waging economic espionage against U.S.A. businesses. “The question is not who steals,” Mr. McCurdy said. “It is who doesn’t steal.” #RandolphHarris 11 of 17

In medieval society the economic organization of the city had been relatively static. The craftsmen since the later part of the Middle Ages were united in their guilds. Each mast had one or two apprentices and the number of masters was in some relation to the needs of the community. Although there were always some who had to struggle hard to earn enough to survive, by and large the guild member could be sure that he could live by his hand’s work. If he made good chairs, shoes, bread, saddles, and so on, he did all that was necessary to be sure of living safely on the level which was traditionally assigned to his social position. He could rely on his “good works,” if we use the term here not in its theological but in its simple economic meaning. The guilds blocked any strong competition among their members and enforced co-operation with regard to the buying of raw materials, the techniques of production, and the prices of their products. In contradiction to a tendency to idealize the guild system together with the whole of medieval life, some historians have pointed out that the guilds were always tinged with a monopolistic spirit, which tried to protect a small group and to exclude newcomers. Most authors, however, agree that even if one avoids any idealization of the guilds they were based on mutual cooperation and offered relative security to their members. Medieval commerce was, in general, carried on by a multitude of very small businessmen. Retail and wholesales business were not yet separated and even those traders who went into foreign countries, such as the members of the North German Hanse, were also concerned with retail selling. The accumulation of capital was also very slow up to the end of the fifteenth century. #RandolphHarris 12 of 17

Thus the small businessman had a considerable amount of security compared with the economic situation in the late Middle Ages when large capital and monopolistic commerce assumed increasing importance. Much that is now mechanical about the life of the medieval city, was then personal, intimate and direct and there was little room for an organization on a scale too vast for the standards that are applied to individuals, and for the doctrine that silences scruples and closes all account with the final plea of economic expediency. This leads us to a point which is essential for the understanding of the position of the individual in medieval society, the ethical views concerning economic activities as they were expressed not only in the doctrines of the Catholic Church, but also in the secular laws. This position cannot be suspected of attempting to idealize or romanticize the medieval World. The basic assumptions concerning economic life were two: “That economic interests are subordinate to the real business of life, which is salvation, and that economic conduct is one aspect of personal conduct, upon which as on other parts of it, the rules of morality are binding. Material riches are necessary; they have secondary importance, since without them men cannot support themselves and help one another…But economic motives are suspect. Because they are powerful appetites, men fear them, but they are not mean enough to applaud them…There is no place in medieval theory for economic activity which is not related to a moral end, and to found a science of society upon the assumption that the appetite for economic gain is a constant and measurable force, to be accepted like other natural forces, as an inevitable and self-evident datum, would have appeared to the medieval thinkers as hardly less irrational and less immoral than to make the premise of social philosophy the unrestrained operation of such necessary human attributes as pugnacity and the sexual instinct. #RandolphHarris 13 of 17

One must exist for man, not man for riches. At every turn therefore, there are limits, restrictions, warnings against allowing economic interests to interfere with serious affairs. It is right for a man to seek such wealth as is necessary for a livelihood in his station. To seek more is not enterprise, but avarice, and avarice is a deadly sin. Trade is legitimate; the different resources of different countries show that it was intended by Providence. However, it is a dangerous business. A man must be sure that he carries it on for the public benefit, and that the profits which he takes are no more than the wages of his labor. Private property is a necessary institution, at least in a fallen World; men work more and dispute less when goods are private than when they are common. However, it is to be tolerated as a concession to human frailty, not applauded as desirable in itself. The estate must be legitimately acquired. Today the World is changing again, and the overwhelming majority of Americas are neither farmers nor factory workers. Instead, they are engaged in one or another form of knowledge work. America’s fastest growing and most important industries are information-intensive, and the Third Wave sector includes more than high-flying computer and electronic firms and biotech start-ups. It embraces advanced, information-driven manufacturing in every industry. It includes the increasingly data-drenched services—finance, software, entertainment, the media, advanced communications, medical services, consulting, training and education. In short, it includes al the industries based on mind-work rather than muscle-work. The people who work in this sector will soon be the dominant constituency in American politics. #RandolphHarris 14 of 17

Unlike the “masses” during the industrial age, the rising Third Wave constituency is highly diverse. It is de-massified. It is composed of individuals who prize their differences. Its very heterogeneity contributes to its lack of political awareness. It is far harder to unify than the masses of the past. Thus the Third Wave constituency has yet to develop its own think tanks and political ideology. It has not systematically marshaled support from academia. Its various associations and lobbies in Washington are still comparatively new and less well connected. And except for one issue, NAFTA, in which the Second Wavers were defeated, the new constituency has few significant notches on its legislative belt. Yet there are key issues on which this broad constituency-to-come can agree. To start with: liberation. Liberation from all the old Second Wave rules, regulations, taxes and laws laid in place to serve the smokestack barons and bureaucrats of the past. These arrangements, no doubt sensible when Second Wave industry was the heart of the American economy, today obstruct Third Wave development. For example, depreciation tax schedules lobbied into being by the old manufacturing interests presuppose that machines and products last for many years. Yet in the fast-changing high-tech industries, and particularly in the computer industry, their usefulness is measured in months or weeks. The result is a tax bias against high tech. Research and development deductions also favor big, old Second Wave companies over the dynamic start-ups on which the Third Wave sector depends. #RandolphHarris 15 of 17

The current tax treatment of intangibles means that a company with a lot of obsolete sewing machines may well be favored over a software firm that has very little in the way of physical assets. (Even accounting standards, set not by government but by the Financial Accounting Standards Board, favor investment in hardware over information, human resources and other intangibles on which Third Wave companies depend.) Yet changing such rules will mean winning a bitter political fight against the Second Wave firms that benefit from them. Companies in the Third Wave sector have special characteristics. They tend to be young—both in corporate age and in the age of their work force. Work units in them tend to be small compared with those in Second Wave firms. They tend to invest more than average in research and development training, education and human recourses. Ferocious competition forces them to innovate continuously. That means short product lifecycles, and it often implies a rapid turnover of people, tools, and administrative practices. They key assets of these firms are symbols inside the skulls of people. Should these firms and industries be expected play the game according to rules that penalize them for precisely their Third Wave characteristics? Is not this tying America’s hands behind its back? Much of the Third Wave Sector is engaged in providing a dazzling, ever-changing array of services. Instead of decrying the rise of the service sector and continually attacking it as a source of low productivity, low wages, and low performance, should not it be expressly supported and expanded? Should not it at least be freed of old shackles? #RandolphHarris 16 of 17

American needs more, not less, service sector employment to improve the quality of life of its people. That means jobs for everyone from electronics repairment to recyclers, from health-care providers and people who help the elderly to police and firefighters, and—yes—it even means jobs for child-care providers and for domestic workers who are desperately needed in millions of two-income homes. A Third Wave economic policy should not pick winners and losers, but it should clear away the obstacles to professionalization and development of the services needed to make life in America less stressed-out, less frustrating and impersonal. Yet no political party as yet has even begun to think this way. Despite the political lag, the Third Wave constituency is outside the conventional political parties because neither party has so far noticed its existence. Thus it is Third Waver who dominate the new electronic communities springing up around the Internet. And it is these same people who are busy demassifying the Second Wave media and creating an interactive alternative to it. Traditional party politicians who ignore these new realities will be swept aside like M.P.s in nineteenth-century England who imagined their rural, “rotten borough” seats in Parliament were permanently secure. The Third Wave force in America have yet to find their voice. The political part that gives it to them will dominate the American future. When that happens, a new and dramatically different America will rise from the ruins of the late-twentieth century. #RandolphHarris 17 of 17

MAGNOLIA STATION AT CRESLEIGH RANCH

Rancho Cordova, CA | low $600s

Now Selling!

Models now open at Magnolia Station! Located at the corner of Rancho Cordova Parkway and Douglas Road, residents of Cresleigh Ranch will benefit from a brand new neighborhood with convenient access to the new Raley’s Shopping Center, Sunrise Boulevard, and much more!

Magnolia Station will  include 81 homesites  and five distinct plans ranging from 2,200 – 3,700 square feet; including three single story plans!

Each plan has been thoughtfully designed to include features such as: Generations Suite, Optional Offices/Dens, Extended Great Rooms, and more! https://cresleigh.com/magnolia-station/

#CresleighHomes