Federal agents searched a Boston-area computer software firm looking for evidence that the company, which provides network software to key government agencies including the FBI, might have links to Osama bin Laden's terror network.
The Quincy, Mass.-based firm, Ptech Inc., makes software and is allegedly secretly owned by Qassin al-Kadi, one of 12 Saudi businessmen suspected of funneling millions of dollars to al Qaeda.
U.S. government investigators told ABCNEWS there are fears al Qaeda may have had access to some of the government's most closely held secrets about agency computer systems through the company, which provided software for the FBI, the Navy, the Air Force and the agency that handles nuclear weapons security.
Just before midnight Thursday, in a driving snowstorm that blanketed the East Coast, a team of U.S. Customs agents began their search of the firm's Quincy offices. The agents, sources told ABCNEWS, opted to start the search at that time because they did not want to risk tipping off employees who might destroy records or activate a hidden computer virus.
The search was the result of a six-month-long, top-secret investigation by the Customs Service, coordinated by the National Security Council at the White House amid concerns that the company was secretly owned and controlled by al Qaeda activists or sympathizers.
A White House official said that while the White House was informed, it did not play an active role in the probe.
Ptech Cooperative, Denies Terror Link
Agents could be seen inside the Ptech headquarters, searching the offices and going through the company's computers. The agents brought their own computers with them to download files from the firm's computers and removed tens of thousands of documents and computer files.
There were no immediate arrests of anyone associated with Ptech.
The company's Web site reveals a list of customers that is a who's-who of sensitive government agencies, including the Naval Air Systems Command, NATO, the House of Representatives and the Department of Energy, which handles security for nuclear weapons and material. Experts said Ptech had easy access to the computer systems of those agencies and that a link to terror groups could signal a breakdown in national security.
"They [Ptech officials] know what kind of information is stored. They know what kind of equipment that information is stored on at a given branch," said Robert Richardson, a security analyst with the Computer Security Institute. "They may even know something about the vulnerability of those systems."
Director of Homeland Security Tom Ridge said the Ptech documents and files are not a threat to national security.
"The software in no way jeopardizes the security of our country, and we'll leave it at that," he said.
In a statement, Ptech said that the search was consensual and that the company has assisted and is cooperating with the investigation.
"Ptech has been informed by government investigators that neither Ptech nor its offices or employees are targets of the government's investigation," the statement said. "The company categorically denies having any connection to any terrorist organization."
Looking for a 'Back Door'
Still, the investigation of Ptech was triggered when employees came forward last year and told government investigators that they had evidence that the company was owned by al-Kadi, a Saudi multimillionaire who is one of bin Laden's alleged money men. ABCNEWS has learned that the employees had notified the FBI's Boston field office, but, sources said, their concerns were downplayed.
The investigation into the alleged al-Kadi-Ptech terrorism connection only gained momentum after the employees brought their concerns to U.S. Customs officials and the White House.
The Boston FBI denied the allegations that it shrugged off the employees' concerns.
Al-Kadi has repeatedly denied any connection to bin Laden, but he is on the U.S. government's "dirty dozen" list of leading terror financiers who are being investigated by the CIA, and his accounts have been frozen by the United States.
In an interview last year with ABCNEWS' John Miller, al-Kadi denied sending any money to bin Laden. "To hear such an accusation had been put on myself, this is a complete mistake, a big one," he said.
American officials say al-Kadi and the other businessmen on the CIA list all have business and personal connections to the Saudi royal family.
The Customs investigation has been given the highest priority inside the government and for the last few weeks, government agencies have quietly been searching their computer software to see if there might be any hidden bugs or "back doors" that would make it easy for terrorist hackers to break in.
FBI officials told ABCNEWS that the bureau bought software from Ptech to use in overseeing administrative functions such as purchase orders. The FBI has checked the software for electronic bugs and found none, the officials said.
Investigators said it could take weeks or even months to go through all the files that will be downloaded from Ptech computers.
ABCNEWS' Brian Ross, David Scott, Simon Surowicz, Vic Walter, and Pierre Thomas contributed to this report.
