Bill Gaede
Encyclopedia
Bill Gaede is an Argentine engineer, programmer, Cold War
industrial spy who worked at Advanced Micro Devices
(AMD) and Intel Corporation
(Intel). While at AMD, he provided the Cuban Government with technical information from the semiconductor industry which the Cubans passed on to the Soviet bloc, primarily to the Soviet Union and East Germany. In 1992, Gaede turned himself over to the Central Intelligence Agency
(CIA), which placed him in contact with the Federal Bureau of Investigation
(FBI). The FBI began working with Gaede in a counter-espionage operation intended to penetrate Cuban intelligence using his contacts on the island. During this time Gaede obtained work at Intel Corp. in Chandler, Arizona. Intel Security discovered the nature of his activities at AMD and terminated him, but not before Gaede filmed Intel's state-of-the-art Pentium process from home. Gaede fled with this technology to South America where he allegedly sold the information to Chinese and Iranian representatives. Upon his return to the United States, Gaede was arrested, prosecuted, and convicted. He served a term of 33 months in prison, after which he was deported. The 9th Circuit Court rejected Gaede's appeal, and the Supreme Court denied certiorari
.
, Buenos Aires Province
, Argentina
, the third of four siblings of Gunther and Wiera Gaede. The Gaedes migrated to Rockford, Illinois, in 1959, but returned to Argentina in 1965 disillusioned with their experience in the United States. Although from a Peronist background, Gaede joined the Communist Party of Argentina
at the age of 21 while serving as a steward of FOETRA, the union of the state-owned telephone company ENTel
. After his application for a Cuban resident visa was turned down, he re-entered the United States in 1977, this time as a tourist. In the U.S., Gaede worked under the alias Ricardo Monares at Caron International in Rochelle, Ill.
In 1986, Gaede was transferred to AMD's plant in Austin, Texas. This move enabled Gaede to take material in the trunk of his car and deliver the technology to Cuban agents on the Mexican side of the border.
Gaede was so successful in this clandestine operation that Fidel Castro arranged to meet him in person in Havana at the end of 1988. Gaede eventually traveled in 1990, but by then had become disenchanted with communism. The entire Soviet bloc had disintegrated during 1989.
Intel terminated Gaede's employment in June 1994. However, before Gaede was fired, he managed to film the entire Pentium process database from his home, ironically, using a terminal provided by Intel. He placed a camera and filmed the specs as they rolled on the screen. Shortly after, Gaede fled to South America and began to peddle the technology through the embassies of China and Iran. He allegedly counseled and trained Chinese and Iranian engineers in American manufacturing processes. Gaede was arrested by Argentine authorities as he attempted to bury tapes and documents, and was subsequently interrogated by the Secretaría de Inteligencia
(SIDE) and the CIA in Buenos Aires.
Intel security manager Steve Lund arranged to meet Gaede in Argentina at the Sheraton Hotel on May 14, 1995. During their meeting, Gaede admitted to Lund to having stolen AMD material and equipment and giving it to the Cubans. He also admitted taking Intel's Pentium process and providing it to foreign countries. Intel alleged, further, that Gaede sent a video of the Pentium technology he copied to rival AMD.
As a result of these acts, Intel filed a civil complaint against Gaede in Argentina and criminal charges in the U.S. District Court in San Jose, California. Gaede denied the charge of sending tapes to AMD and accused the CIA of framing him.
enacted the Industrial Espionage Act of 1996, legislation that would soon be used to prosecute activities of the type Gaede was involved in.
) Captain José (Pepe) Cohen Valdés of working under the supervision of the Cuban government while on the island. Gaede claims that the American intelligence agencies never recruited Cohen because they did not believe Cohen to be credible. Gaede further accuses Cohen of deliberately misinforming the American intelligence agencies by channeling false information through him to the CIA and of betraying both him and their comrade in arms, Rolando Sarraf Trujillo, sentenced to 25 years in prison for espionage in Cuba after Cohen's defection. Gaede accuses the Cuban government of masterminding a counter-espionage operation against the U.S. that revolved around Cohen and his commander, Major Onelio Beovides. Cohen denies the charges.
Cold War
The Cold War was the continuing state from roughly 1946 to 1991 of political conflict, military tension, proxy wars, and economic competition between the Communist World—primarily the Soviet Union and its satellite states and allies—and the powers of the Western world, primarily the United States...
industrial spy who worked at Advanced Micro Devices
Advanced Micro Devices
Advanced Micro Devices, Inc. or AMD is an American multinational semiconductor company based in Sunnyvale, California, that develops computer processors and related technologies for commercial and consumer markets...
(AMD) and Intel Corporation
Intel Corporation
Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California, United States and the world's largest semiconductor chip maker, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most...
(Intel). While at AMD, he provided the Cuban Government with technical information from the semiconductor industry which the Cubans passed on to the Soviet bloc, primarily to the Soviet Union and East Germany. In 1992, Gaede turned himself over to the Central Intelligence Agency
Central Intelligence Agency
The Central Intelligence Agency is a civilian intelligence agency of the United States government. It is an executive agency and reports directly to the Director of National Intelligence, responsible for providing national security intelligence assessment to senior United States policymakers...
(CIA), which placed him in contact with the Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
(FBI). The FBI began working with Gaede in a counter-espionage operation intended to penetrate Cuban intelligence using his contacts on the island. During this time Gaede obtained work at Intel Corp. in Chandler, Arizona. Intel Security discovered the nature of his activities at AMD and terminated him, but not before Gaede filmed Intel's state-of-the-art Pentium process from home. Gaede fled with this technology to South America where he allegedly sold the information to Chinese and Iranian representatives. Upon his return to the United States, Gaede was arrested, prosecuted, and convicted. He served a term of 33 months in prison, after which he was deported. The 9th Circuit Court rejected Gaede's appeal, and the Supreme Court denied certiorari
Certiorari
Certiorari is a type of writ seeking judicial review, recognized in U.S., Roman, English, Philippine, and other law. Certiorari is the present passive infinitive of the Latin certiorare...
.
Early years
Gaede was born in LanúsLanús
Lanús is the capital of Lanús Partido, Buenos Aires Province in Argentina. It lies just south of the capital city Buenos Aires, in the Greater Buenos Aires metropolitan area. The city has a population of 212,152 , and the Partido de Lanús has a total population of 453,500.A major industrial centre,...
, Buenos Aires Province
Buenos Aires Province
The Province of Buenos Aires is the largest and most populous province of Argentina. It takes the name from the city of Buenos Aires, which used to be the provincial capital until it was federalized in 1880...
, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, the third of four siblings of Gunther and Wiera Gaede. The Gaedes migrated to Rockford, Illinois, in 1959, but returned to Argentina in 1965 disillusioned with their experience in the United States. Although from a Peronist background, Gaede joined the Communist Party of Argentina
Communist Party of Argentina
The Communist Party of Argentina is a communist party from Argentina. It was founded in 1918.At the 2005 legislative elections, the Party joined the Encuentro Amplio with other left-wing parties in Buenos Aires and Buenos Aires Province...
at the age of 21 while serving as a steward of FOETRA, the union of the state-owned telephone company ENTel
ENTel
The Empresa Nacional de Telecomunicaciones was an Argentine state owned company which had the monopoly on public telecommunications in the country until its privatization in 1990.-Overview:...
. After his application for a Cuban resident visa was turned down, he re-entered the United States in 1977, this time as a tourist. In the U.S., Gaede worked under the alias Ricardo Monares at Caron International in Rochelle, Ill.
Working at AMD and connection with Cuba
Gaede moved to California and started working at AMD in Sunnyvale in September 1979. By 1982, he had worked his way up the ranks to become a process engineer. Still faithful to his socialistic principles, Gaede began to gather technical information from AMD, which he offered to the Cubans in one of his trips to Buenos Aires.In 1986, Gaede was transferred to AMD's plant in Austin, Texas. This move enabled Gaede to take material in the trunk of his car and deliver the technology to Cuban agents on the Mexican side of the border.
Gaede was so successful in this clandestine operation that Fidel Castro arranged to meet him in person in Havana at the end of 1988. Gaede eventually traveled in 1990, but by then had become disenchanted with communism. The entire Soviet bloc had disintegrated during 1989.
CIA and FBI involvement
At the urging of renegade Cuban agents, Gaede turned himself over to the CIA on July 13, 1992. The FBI interrogated Gaede in September 1992 and began to use him in a counter-intelligence operation against Cuba. The FBI admitted reimbursing Gaede $607.16 for "expenses incurred in connection with a counterintelligence matter." Apparently, the plan consisted of taking advantage of Gaede's intelligence contacts on the island.Gaede and Intel
While under FBI supervision, Gaede obtained a job as a programmer at the Intel chip plant in Chandler, Arizona. The FBI alleges that it alerted Intel of Gaede's background. Intel flatly denies the allegation, stating that had the company known of Gaede's background, "It is safe to say that Gaede would not have been hired."Intel terminated Gaede's employment in June 1994. However, before Gaede was fired, he managed to film the entire Pentium process database from his home, ironically, using a terminal provided by Intel. He placed a camera and filmed the specs as they rolled on the screen. Shortly after, Gaede fled to South America and began to peddle the technology through the embassies of China and Iran. He allegedly counseled and trained Chinese and Iranian engineers in American manufacturing processes. Gaede was arrested by Argentine authorities as he attempted to bury tapes and documents, and was subsequently interrogated by the Secretaría de Inteligencia
Secretaría de Inteligencia
Secretaría de Inteligencia is the premier intelligence agency of the Argentine Republic and head of its National Intelligence System....
(SIDE) and the CIA in Buenos Aires.
Intel security manager Steve Lund arranged to meet Gaede in Argentina at the Sheraton Hotel on May 14, 1995. During their meeting, Gaede admitted to Lund to having stolen AMD material and equipment and giving it to the Cubans. He also admitted taking Intel's Pentium process and providing it to foreign countries. Intel alleged, further, that Gaede sent a video of the Pentium technology he copied to rival AMD.
As a result of these acts, Intel filed a civil complaint against Gaede in Argentina and criminal charges in the U.S. District Court in San Jose, California. Gaede denied the charge of sending tapes to AMD and accused the CIA of framing him.
Return to the United States, arrest, conviction and deportation
Gaede returned to the United States in June 1995 and was arrested by the FBI on 23 September. He represented himself in court and changed his plea after reaching an agreement with federal prosecutors. The agreement included a clause advising against deportation in spite that Gaede was known to be in the country illegally. The Immigration and Naturalization Service (INS) proceeded to process Gaede for removal despite the recommendation. Initially, Gaede prevailed in his deportation case, but the government appealed. The case was remanded, and Gaede was subsequently deported.The Industrial Espionage Act of 1996
During Gaede's prosecution, AMD, the FBI, and the U.S. Attorney, all affected parties, complained that there were no laws to prosecute cases such as his. Shortly after Gaede's plea, the United States CongressUnited States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
enacted the Industrial Espionage Act of 1996, legislation that would soon be used to prosecute activities of the type Gaede was involved in.
Charges against him
- National Stolen Property Act – US Code Title 18 Section 2314
- Mail Fraud – US Code Title 18 Section 1341
Accusations against José Cohen Valdés and the Cuban Government
Gaede created some controversy in the Cuban exile community in July 2009 by publicly accusing Miami businessman and ex-DGI (General Intelligence DirectorateGeneral Intelligence Directorate
The Intelligence Directorate is the main state intelligence agency of the government of Cuba. The DI, under the big umbrella of the MININT, was founded in late 1961 by Cuba's Ministry of the Interior shortly after the Cuban Revolution...
) Captain José (Pepe) Cohen Valdés of working under the supervision of the Cuban government while on the island. Gaede claims that the American intelligence agencies never recruited Cohen because they did not believe Cohen to be credible. Gaede further accuses Cohen of deliberately misinforming the American intelligence agencies by channeling false information through him to the CIA and of betraying both him and their comrade in arms, Rolando Sarraf Trujillo, sentenced to 25 years in prison for espionage in Cuba after Cohen's defection. Gaede accuses the Cuban government of masterminding a counter-espionage operation against the U.S. that revolved around Cohen and his commander, Major Onelio Beovides. Cohen denies the charges.