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By Brad Friedman on 9/22/2005 12:31PM  
Disputes Voting Machine Company's Explanations for Lowered Forecasts, Compares Company to Enron...
Points to Mismanagement, Failed Voting Equipment, Homeland Security Warnings and CEO O'Dell's $3m Salary as More Likely Causes

Our still-anonymous Diebold Insider --- who we call DIEB-THROAT --- has some thoughts on Wednesday's sudden and stunning 15.5% one-day plunge in Diebold, Inc. share prices as reported earlier today by The BRAD BLOG.

"What a difference a few months makes," DIEB-THROAT wrote after the market close on Wednesday. "Back in July, Diebold told investors during its conference call the election revenues were sound and expected to grow." Yes, DIEB-THROAT was on that conference call. "Now all of a sudden Diebold's [CEO Walden] O'Dell tells investors of $10 million in lower revenues from election systems alone. Perhaps what Diebold isn't talking about is the $500,000 a month in legal fees they were spending in California, or the current rash of problems with touch screen systems that freeze up when votes are cast. Using Hurricane Katrina is a poor excuse for bad products - the last time this kind of deception occurred it was called Enron."

The blistering comments about Hurricane Katrina were in regard to Diebold's press release early Wednesday morning attributing much of their lowered forecasts for 3rd quarter and full-year earnings to the hurricane. The "freeze up" on Diebold's touch-screen voting machines has long plagued the North Canton, Ohio-based company, and a recent massive test of the equipment by California's Republican Sec. of State Bruce McPhereson confirmed that a full 20% of Diebold's machines either froze up or had printer jams.

When The BRAD BLOG spoke last week with Diebold spokesperson, David Bear about the California tests, Bear repeated several times times that "there were a total of 10 printer-jams after 11,000 votes were cast." When asked several times about similar statistics concerning the number of screen freeze-ups, Bear was unable to give us any information or numbers whatsoever.

The Tri-Valley Herald, however, had some numbers in their report on the massive California tests:

[W]hen Diebold representatives trucked in 96 brand-new TSx machines, and local elections officials voted on them July 20 in a San Joaquin County warehouse, nearly twice as many machines froze or crashed as had paper jams.
...
In all, 19 machines had 21 screen freezes or system crashes, producing a blue screen and messages about an illegal operation or a fatal exception error. A Diebold technician had to restart the machine for voting to resume. Ten machines had a total of 11 printer jams. Almost a third of all machines in the mock election had one problem or another.

Those tests, the largest of their kind, led to Sec. McPhereson's banning of the Diebold TSx touch-screen voting machines in the State of California, the largest voting "market" in the country.

Amongst other problems the company blamed on the hurricane in this morning's release, they claimed, "the impact of Hurricane Katrina is negatively affecting scheduled election systems deliveries in the Gulf region, resulting in approximately $10 million in lower elections systems revenue during the quarter."

As well, O'Dell himself is quoted in the release as suggesting "operational inefficiencies" as one of the factors contributing to lowered earnings expectations:

"I am extremely disappointed with our lack of progress in correcting our operational inefficiencies, and I am personally committed to taking immediate action to improve our effectiveness in these areas," said Walden W. O'Dell, Diebold chairman and chief executive officer.

However, O'Dell --- who took over today as President and Chief Operational Officer for Eric C. Evans who announced his resignation this morning --- didn't mention if correcting "operational inefficiencies" would include any changes to the $3,058,650 paycheck that O'Dell himself took from the company in 2004.

As well, DIEB-THROAT believes there's more bad news ahead for Diebold stockholders, pointing to the failure of stock prices to bounce back quickly today after the early morning plummet. "Typically the stock would bounce back after such a dip. This is a sure sign of a troubled company," says the source who continues to request anonymity based on a continuing sensitive relationship with the company.

More trouble in the days and weeks ahead was also predicted by DIEB-THROAT, who feels the trouble isn't as much the weather, as it is a poorly run company.

"If Hurricane Katrina was at fault this stock should go through the floor when Hurricane Rita hits. The fact of the matter is Diebold is mismanaged and unethical. The revolving door in top management we've seen in the last few months is perhaps the sprint for cover. After all who wants to be around when the feds pull back the curtain on the Homeland Security issue," said DIEB-THROAT in regard to the Cyber Alert issued last year, prior to November's election, by the U.S. Computer Emergency Readiness Team (US-CERT) --- an arm of the U.S. Dept. of Homeland Security --- as reported in a BRAD BLOG Exclusive late last week.

That "Cyber Security Bulletin", little-noticed by the media, and apparently wholly ignored by Diebold when it was originally posted in late August of 2004 is still available on the US-CERT website. It warns of an "undocumented backdoor" in Diebold's GEM Central Tabulator software used with its electronic voting machine systems. The security vulnerability could allow a local or remote user to modify vote tallies stored in the system according to the warning and corroborated by several different sources.

"This backdoor means that one malicious person can change the outcome of any Diebold election," DIEB-THROAT said in our previous article. "Diebold's election system," the source added, "is one of the greatest threats our democracy has ever known."

Buzz this story!


READER COMMENTS ON
"DIEB-THROAT Weighs in on Diebold's Stunning 15.5% Wednesday Stock Plunge"
(47 Responses so far...)

COMMENT #1 [Permalink]
... lukery said on 9/22/2005 @ 2:01 am PT...


great work on this story brad. let's hope that more people from diebold start ratting out the company after they jump ship. perhaps we can finally get the bastards impeached and put them where they belong.

it appears as though they are worried about being impeached and have put pressure on zogby not to ask the impeachment question again. i love it when they are nervous!


COMMENT #2 [Permalink]
... unirealist said on 9/22/2005 @ 2:58 am PT...


But isn't Walden O'Dell's salary paid by the RNC?


COMMENT #3 [Permalink]
... Joan said on 9/22/2005 @ 4:20 am PT...


Lukery,
When I click on your link, I get "page cannot be found"...


COMMENT #4 [Permalink]
... heartland said on 9/22/2005 @ 5:20 am PT...


Is there a possibility that this story can get wider coverage? Have you sent it to your own Senators and Representatives and/or local election officials? Have you contacted other news media?

It is so important, so crucial - our local election commissioner is rock-solid in her belief that we don't need any paper trials because "Diebold machines are very reliable.:

She needs a wake-up call. So many people around where I live want to change from Republican to Democrat. Yet, they voice fears that "it won't make any difference because the fix is in."

We need information like this to get a widest read possible so an enraged public can demand investigations and real change can occur.

Good work. Thank goodness someone knows what investigative reporting means. Thank you for going after issues that really mean something to us.


COMMENT #5 [Permalink]
... KestrelBrighteyes said on 9/22/2005 @ 10:15 am PT...


Oh man I soooo want to see the downfall of these monsters...

BTW, I saw on Rawstory today that Jimmy Carter actually said he has no doubt that Gore won the 2000 election!

His association with James Baker almost made me lose faith in him completely - but is this statement a sign that he really DOES know what's going on?

I know this is totally far fetched, but I've always been one to "dare to dream big" - what are the chances of hooking up Dieb-throat with Carter, to get the story out there? He'd make a heck of an ally, and he seems to be willing to take up the cause. Has anyone made him aware of the latest inside information on the Diebold machines?

Should the 6 or 7 get busy?

At the very least, maybe with so many kindred spirits in DC this weekend, someone will be able to get this through to mainstream media.


COMMENT #6 [Permalink]
... merifour said on 9/22/2005 @ 10:33 am PT...


OT. Don't know where to post. Senate Bill 517 introduced 9-2-05 titled "Weather Modification Research and Technology Transfer Authorization Act of 2005" to become effective Oct. 1, 2005. Are we deep in the middle of Weather Wars? From what I have read 10 countries have technology. Sec. Cohen first started talking about this in 1997. Bush did his War on Terror speech this AM. Iran, Syria, Venezuela, who is next. God Save America. M4


COMMENT #7 [Permalink]
... Brad said on 9/22/2005 @ 10:54 am PT...


HEARTLAND - I have now been inundated with requests for more info, etc., from loads of mainstream media folks concerning the DIEB-THROAT story, so we'll see where they take it from there. IF they take it from there.

For your parts, however, letting local newspapers know about it, legislators, Elections Boards, etc. is UP TO YOU! Please do whatever you can to help amplify these important issues to them!


COMMENT #8 [Permalink]
... Dredd said on 9/22/2005 @ 11:42 am PT...


Next thing you know they will be blaming their failures on the criminals that developed the software.

But that dog won't hunt because they hired them from prison ... I mean they hired computer fraud felons while those felons were still in prison.

They care more about customer neoCon and company than public servant customers ... but that tactic is failing.

I hold out hope ... keep up the pressure Brad. And good for you.

Good for Carter too for finally coming out and saying the clear and obvious, as Kira pointed out, that the elections are fraudulent in recent times.

Of course, thanks goes to diebold and their trolls for the outbreak of fraud in place of honor.


COMMENT #9 [Permalink]
... Dredd said on 9/22/2005 @ 11:44 am PT...


I meant KestleBrightEyes instead of Kira ... about the Carter statement.


COMMENT #10 [Permalink]
... MrBlueSky said on 9/22/2005 @ 12:14 pm PT...


Hey Brad (#7)!

Glad the MSM actually is starting to wake from its years long slumber!

Give 'em all HELL!

I sure hope that KING 5 in Seattle is one of those (the one I sent the information to!)


COMMENT #11 [Permalink]
... MrBlueSky said on 9/22/2005 @ 12:17 pm PT...


Almost forgot to mention to you Brad.

I heard you all over the airwaves on Thom Hartmann and Steph Miller (local station KPTK).

I just smiled to myself when I heard you give your report and thought... GO BRAD GO!!!


COMMENT #12 [Permalink]
... Doug Eldritch said on 9/22/2005 @ 12:25 pm PT...


CNN should run with this story once you have more than three corraborated sources (and a single name) it WOULD BE JUST THE THING to blow it all wide open and then, we'll throw em out and end the Iraq war!!!!

Diebold's days are numbered!!!!!!!!

Sequoia is facing federal injunction lawsuits in Washington and Tennessee!!!!

ES&S stock is falling, and they've jumped on the AutoMark ballot system!

ES&S iVotronic machines were the worst FRAUDS imagineable, caused more deleted votes than any machines ever. They finally are cancelling them and putting out AutoMark with pen and paper.

RIDE THE REVOLUTION!!!!!!!!

Doug E.


COMMENT #13 [Permalink]
... Robert Lockwood Mills said on 9/22/2005 @ 1:31 pm PT...


Hurricane Katrina is to blame for Diebold's problems? Might as well say it was the Johnstown Flood!

My God, what chutzpah these corporate moguls have. At least when the Edsel bombed, Henry Ford didn't blame it on nuclear fallout from H-Bomb tests.
I've heard it all.


COMMENT #14 [Permalink]
... BigTobacco said on 9/22/2005 @ 1:39 pm PT...


Maybe the Liberals read this article on weather modification... and used it to crash diebold's stock.


COMMENT #15 [Permalink]
... Doug Eldritch said on 9/22/2005 @ 1:45 pm PT...


LOL!!!! Yeah BigTobacco, that's the latest theories these moron freepers have come up with.

Where do these half-witted shi8ts get this stuff!?!? HOLY CRAP!!!!!!

Like anyone is secretly creating HAARP induced hurricaines, its all a "liberal" conspiracy.

Jeezuz H Christ. And Global warming is fake! 8-P

Is there one single thing THESE QUEERS DO NOT blame on 'liberals' or attribute to liberals?

Even that idiot judge who used his fascist rule of law on these anti-war activists said it was a liberals fault over 10 times. WTF goes on in these clowns brains!??!??

By the way, I guess Hurricaine Rita is why Halliburton and ES&S will go under next!!!!!

Doug


COMMENT #16 [Permalink]
... A Concerned Citizen said on 9/22/2005 @ 3:05 pm PT...


I'm sorry to go off topic for a second, but I found something encouraging, to me, from a link found at whatreallyhappened.com under the heading "9/11 All in One Place" - It's getting some attention, there are some impressive names on this list! If you've already seen it, I'm sorry. Worth the try, though, since it literally lifted my spirits. Doesn't happen often these days from what I read about.

911 truth.org

I suddenly don't feel so alone....... :o )


COMMENT #17 [Permalink]
... A Concerned Citizen said on 9/22/2005 @ 3:27 pm PT...


Now that I check to see if the link works (which it did thanks to Kira!), I see the date of Oct 26, 2004, my bad, what happened with this? Nothing, I'm guessing? :o ( Damn, I actually got hopeful. Sorry all, honest.


COMMENT #18 [Permalink]
... Peggy said on 9/22/2005 @ 5:09 pm PT...


If I had the means, I would SHORT SELL Diebold shares and all the other voting machine company shares ... they are going down the toilet. I bet the people dumping the stocks are the Republican hierarchy ... they don't give two twigs for America, but they sure CRY when they lose money from their bank accounts!!!


COMMENT #19 [Permalink]
... Phil said on 9/22/2005 @ 5:18 pm PT...


God, I hope more Dieb throats come out and with evidence. Thankgoodness for the one individual who has.


COMMENT #20 [Permalink]
... unirealist said on 9/22/2005 @ 5:28 pm PT...


Hurricane Rita just made a "sharp right turn", and will likely bypass Houston/Galveston--and is headed now toward the heaviest concentration of oil refineries in the US.

Doesn't it sound as if Rita, like Katrina before it, is being deliberately aimed? Toward where it can do the most damage to our critical oil infrastructure?

Let's not laugh off the "weather wars" proponents. But it's for sure not the liberals to blame. More likely it's China.


COMMENT #21 [Permalink]
... lukery said on 9/22/2005 @ 7:06 pm PT...


joan - the link seems to be working. try again?


COMMENT #22 [Permalink]
... merifour said on 9/22/2005 @ 8:56 pm PT...


#20 I agree, first I thought the US was involved but now am wondering if they are trying to use our technology to 'steer' the Hurricanes being sent our way...to the oil fields no less. (the strange twists and turns) Haven't yet figured out what is happening....more puzzle pieces. I need to be online 24/7 as everthing is unfolding so fast. Who are the players, shall we just put names in hat and draw one out. Didn't Bin Laden say we were in for it big time. But then some say he works for the CIA.......I don't know where all this is going.

#16 good piece even if it was old...sometimes I have to take a look at old documents to aid me in my research.

Brad, excellent work on the Deibold expose'. I followed it before the selection but everyone said it wouldn't happen. Yeah right. I didn't even want to vote, I knew it would be rigged and so it was. I hope they are all exposed and you and your source bring them down.


COMMENT #23 [Permalink]
... gtash said on 9/23/2005 @ 5:00 am PT...


I have a question. I read the other day on a blog a mention of an inventor who had a voting machine idea--something about a paper receipt and a code which would be keyed to his receipt and that of the election board's receipt to verify a unique vote in event of a recount. Then the remark that this person was mysteriously bumped-off in a suspicious traffic accident. As Brad-folks are well informed on voting machine-matters, could somebody tell me (here) what this story refers to and if they believe Diebold is connected?


COMMENT #24 [Permalink]
... Brad said on 9/23/2005 @ 12:18 pm PT...


Athen Gibbs and TrueVote is what you're asking about GTash. I'm on the air right now, so don't have time to look up the details, but I'm guessing you can find them, and/or others can give you a pointer...He was killed in a mysterious car crash after developing a WORKING VERIFIABLE TRANSPARENT electronic voting system.


COMMENT #25 [Permalink]
... Robert Lockwood Mills said on 9/26/2005 @ 6:11 am PT...


Funny, isn't it? We haven't heard a word lately from those trolls who were buying Diebold stock on "the dip" a couple of months ago. They were all at pains to assure us Diebold was a great buy, because all the negative talk about the company was coming from conspiracy theorists and liberal sore losers.

I wonder if these guys still own the stock (if in fact they were telling the truth that they were buying it, which is doubtful). Maybe they bailed out just in time but haven't told us yet.


COMMENT #26 [Permalink]
... doncom said on 9/30/2005 @ 7:32 am PT...


Now would be a good time to have a "Boston Tea Party" and drown effigies of these crooked machines, in every community in America.

We could parade these effigies through heavy populated areas, passing out literature that educates people about how their votes are not being counted and then have a drowning ceremony.


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-->
VotersUnite.org's Daily Voting News 'Daily Voting News'
for July 2-3, 2009

by Ellen Theisen

Co-Editors: Dave Klein and John Washburn

While the goals of the U.S. and the Philippines seem to be the same regarding elections --- fair and fraud-free, their methods are diametrically opposed. The Philippines is desperate to get away from paper ballots and automate their elections, and the U.S., having been there done that, is heading in the opposite direction.

Happy Independence Day! We're taking the weekend off....

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Brad is an independent investigative journalist, blogger, author and broadcaster. He is the co-founder of VelvetRevolution.us, an expert on issues of election integrity, and a Commonweal Institute Fellow.
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