-- 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 Alan Breslauer

Following on our report last Saturday of massive voting machine failures that kept voters from voting for hours in Horry County, SC, Kitty Pilgrim, on CNN's Lou Dobbs Tonight (video at left), reported yesterday on plans for SC to use the same machines again in this Saturday's Democratic primary.

At the same time, the Governor and Legislature in Colorado are finally beginning to get it, and simply override the incompetent SoS there, who can't seem to say "E-Voting machines that don't work should NOT be used in elections." So the Legislature appears ready to do it for him.

We're also happy to see the good John Bonifaz, of VoterAction.org, making an appearance to call for accountability (let's get our money back!) from the voting machine companies that have knowingly defrauded America.

And a NOTE TO KITTY PILGRIM: Your reporting keeps discussing "paperless voting machines" in reference to Direct Recording Electronic (DRE, usually touch-screen) machines that have no "paper trail." Adding "paper trails" to such machines is meaningless. They cannot be verified as reflecting the voter intent anymore than on a DRE without "paper trails."

If you stop and look carefully at your own reporting on SC last week, you'll note that the machines would not work at all until noon, as folks were scrambling to vote on scraps of paper, paper towels, etc. Had those DREs had "paper trails," they still would not have worked, and voters still would not have been able to vote on them.

References to "paperless voting machines" imply that machines with "paper trails" are somehow a solution. They are not. Only paper ballots are a solution. This is something that even Rep. Rush Holt's latest "Emergency Bill" doesn't seem to understand, incredibly enough. That bill (referenced in the CNN report above) would give money to jurisdictions to move to paper ballots, but only if they use "paperless" DREs. If they have DREs with "paper trails," however, they would not be eligible for that money under Holt's bill as written, incredibly enough.

Let's be careful what we wish for and/or report on, guys!

Guest Blogged by Alan Breslauer

CNN's Jack Cafferty calls Dennis Kucinich a "feisty little dude" for taking MSNBC to court for excluding him from the Democratic debate tonight in Las Vegas. A judge agreed that it would be unfair to exclude Kucinich and ordered MSNBC to allow the Congressman to debate. MSNBC has appealed that ruling and the hearing is ongoing.

The viewer E-mail in the second half of the Cafferty File is interesting as well. One viewer suggests that war profits by MSNBC parent company GE were driving the effort to exclude Kucinich from the debate. And the final viewer email by Tony poignantly answers Cafferty's questions about whether the courts should intervene in such cases:

To which Cafferty responds, "Yes they did".

UPDATE: Glenn Greenwald has much more on the Kucinich debate controversy.

Guest Editorial by Kenneth Anderson

Endlessly mundane and always uninformative, the moribund struggle for party nominations in what we so disrespectfully still call the "presidential campaign" inhabit a realm of such vacuous inanity one can palpably sense malignant tumors of ennui forming within.

While would-be Republican candidates spar for the GOP nomination by appealing to brain stem functions (that is, when they're not extolling us with tales of their heavenly devotion), Democrats carry themselves at only a marginally elevated level. This is not to say that there are not candidates --- on both sides --- who would like to raise the bar and address actual issues and policy, but those are shunned by our craven and cack-handed media mavens, who never seem to tire of their perceived role as king-maker in what has become --- for the world's "greatest democracy" --- an embarrassing spectacle of the most base and primitive dimensions. I suspect if media moguls could get Romney and Huckabee to square off in a cage fight, well, that would be next on the tour of the candidates. Who needs all this talk? Though the American public demand campaigns of substance, there appears too little of that on the political horizon, while furry idiots like Wolf Blitzer express puzzlement at the term "triangulating" as it pertains to Hillary Clinton.

What we constantly hear from the corporate media, though it is never stated quite so bluntly, is that those with the money become the kings. The American political campaign system is now a big-money bonanza for media corporations. These corporations prop up candidates with the most money knowing full well that that money will come straight back to them in the form of campaign advertising. The media are now simply advertisers for the biggest political spenders, which is perhaps the reason why the campaign cycle is now virtually continuous. It is a positive feedback loop, reinforcing in the minds of the public that the only viable candidates are the ones with the money, the polls reflect this, more money pours in for those "viable candidates," which in turn cycles right back to the media money machine.

Which is why I am constantly amazed that the so-called "progressive" blogs have chosen to endorse corporate-backed candidates like Hillary Clinton.

Though Dennis Kucinich espouses ideals resonant with most liberal voters, he is as marginalized by progressives as much as the mainstream media as "unelectable," though no one ever seems to understand or explain exactly what that means. Is it his ears?

By all appearances, blogs such as dKos, MyDD, etc, have now simply become another arm of the Democratic party and their backing of the major, big-money candidates simply because they are deemed "electable" entirely betrays the original purpose of their fora.

Guest Blogged by Alan Breslauer

According to CNN's Bill Schneider, "Iraq is not a top issue to Republicans" in the coming election. Thus, Senator John McCain, who is seen as the GOP candidate "Best Able To Handle Iraq" does not gain much traction with voters whose interests have shifted to the economy and to other issues.

Guest blogged by Jon Ponder, Pensito Review.

In the latest CNN/WMUR poll of likely voters in the New Hampshire primary, Fred Thompson has dropped to sixth place behind both Ron Paul and Mike Huckabee.

Thompson has lagged behind the frontrunners since he entered the race in September. But in this latest poll, his support in New Hampshire dropped from 13 percent in the September poll to 4 percent now.

Ron Paul has doubled his support from 4 percent to 8 percent since September. Mike Huckabee has 5 percent.

Mitt Romney, who was governor of next-door Massachusetts, is in the lead with 33 percent, up from 25 percent in September. John McCain's 18 percent support is unchanged. Rudolph Giuliani is in third place with 16 percent --- an eight percentage point drop since September.

Guest Blogged by Alan Breslauer

UPDATE: The mainstream media also critical of the "Clinton News Network (CNN)"

The NY Times:

The LA Times:

Tim Dickinson at Rolling Stone wonders if Wolf Blitzer is a douche or just a dislikeable fellow for running interference on behalf of Hillary.

Eric Altermann thought Joe Biden won the debate while, "The loser was Wolf Blitzer."

And the Gateway Pundit has an excellent rundown on the entire CNN hearts Hillary debacle.

Guest Blogged by John Gideon, VotersUnite.Org

As we reported on Sunday, Dan Rather's investigation of the voting machine industry is causing a stir. Apparently the Election Assistance Commission (EAC) decided that something in the Rather report did not match up with what ES&S had reported to them.

The voting machine company failed to disclose that their equipment was being made in a sweatshop in the Philippines even though they are supposed to reveal all such information to the federal EAC. In a strange fit of responsible behavior, the EAC has sent them a letter of reprimand (letter is posted in full below). Though the notice amounts to little more than a friendly slap on the wrist.

Similarly, the EAC has sent a letter to voting machine company Advanced Voting Systems (AVS), for secretly replacing mother boards in their systems without certification or approval. That letter is also posted at the end of this article.

An interview with Rather, earlier this afternoon on CNN's Situation Room, is now posted at right. Rather's startling report will be airing beginning this evening at 8PM EDT and will air on HD Net over the next few days. It will also be on-line for those who cannot get HD Net. We'll try to provide links as soon as one becomes available. Our report from Sunday included a disturbing 12 minute preview version.

UPDATE FROM BRAD : Kim Zetter at WIRED adds a few details to this issue moments ago, including this interesting revelation of some ES&S sleight-of-hand to hide their Filipino sweatshop...

The full letters from the EAC can be found here [PDF]. A text version of both are found below...

Guest Blogged by Alan Breslauer

A Transcript of the segment of Lou Dobbs is below

Guest Blogged by Alan Breslauer

Following on yesterday's Michael Moore smackdown of Wolf Blitzer, Sanjay Gupta, and CNN specifically and the MSM in general, Moore and Gupta had it out tonight on Larry King Live after Moore fact-checked Gupta's so-called "Reality Check" from the evening before.

The Moore/Gupta appearance is below, broken into three parts...

Part 1

Parts 2 and 3 of the Moore/Gupta appearance on Larry King Live follow below...

Guest Blogged by Alan Breslauer

The continuation of the well publicized brouhaha (ed note: ass kicking!) between Michael Moore and Wolf Blitzer may not provide the fireworks witnessed around the country yesterday but it is still a worthy watch. Blitzer is considerably more conciliatory (ed note: tamed!) this time around referring to parts of Moore's new movie Sicko as "powerful" on more than one occasion. Moore, however, saved the best for last with a classic comment to Blitzer at the very end of the segment that had me laughing out loud and should not be missed.

We just saw Michael Moore's Sicko tonight in St. Louis, and so were pleased to return to our current home base, to find RAW STORY's video coverage of Moore's long overdue smack down with Wolf Blitzer and CNN from earlier this afternoon.

Go watch it. If only for Moore's taking Blitzer and his network to task for helping us into the endless and idiotic Iraq quagmire. (If you can't watch the video, the tull text transcript is now posted here.)

"Just apologize to the American people and to the families of the troops for not doing your job four years ago," Moore excoriated Blitzer after a "Reality Check" report on Sicko by Dr. Sanjay Gupta, which the filmmaker declared "so biased it's unbelievable."

"We wouldn't be in this war if you had done your job. Come on. Just admit it. Just apologize to the American people," he continued in just one choice selection of his rant against the CNN and the mainstream media failures that sent us into --- and have kept us in --- this mess. (After checking out the video, you can send your thoughts to CNN here.)

Thank you, Michael. Again.

As to the movie, go watch that too. We'd have more to say about it, but we're still pondering it all. We had hoped to go with a couple of doctors (our cousins) so they could tell us what was "wrong" with the movie. But for some reason, they weren't interested in going. We hope you will be. It was exceedingly eye-opening even if --- despite all the kudos Moore has received for "his most mature film to date" --- we think he pulled a few punches. Perhaps we preferred him when he was less mature, but maybe that's just us.

But if that was any drawback to his film, and it really wasn't, he made up for it --- in spades --- today with dead on-target ass-whooping to the hapless Wolf Blitzer and friends.

UPDATE 7/10/07: As promised, during his fracas with Blitzer, Moore has now posted a fact-filled refutation of Gupta's so-called "Reality Check". We'll see if CNN and Blitzer, as promised, issues the appropriate apologies and corrections in light of it. Also, well worth reading in response to all of those MSM'ers who so diligently "fact check" when it comes to Moore's film (hey, they need to hold "power" accountable, right? Might as well try to do it once every three years when a Michael Moore film comes out!) see James Clay Fuller's "Commenting on the Commentaries" from Twin Cities Daily Planet. Finally, Moore appears for "Part 2" with Blitzer tonight at 7pm ET on CNN's The Situation Room, and perhaps more notably, with Gupta himself on CNN's Larry King Live tonight at 9pm ET. Someone feel like counting the number of commercials for Health Providers and Pharmaceutical Companies during those two hours alone on CNN, just for yucks?

LATER UPDATES: Video of Part 2 of the Moore/Blitzer interview, aired the next day, now posted here. Video of the Moore appearance with Gupta on Larry King Live now posted here.

Guest Blogged by Alan Breslauer

The Bush administration is hell bent on opening up US highways to Mexican truck drivers without much regard for safety, terrorism, drug smuggling or jobs. In fact, the program seems to be uniting a wide range of groups on the left and the right against the administration which claims it will be good for the economy. Lou Dobbs gives his opinion at the 2:45 mark:

Guest Blogged by Alan Breslauer

Senator Barbara Boxer has a little talk with Senator Exxon, uh, James Inhofe who did not want to let former Vice President Al Gore answer his questions on global warming. It was Gore's first appearance on the Hill since January, 2001. Lou Dobbs covers the entertaining bit (1:32).