Settling with Alan Gross, DAI Changes Its Tune, If Not Its Talking Points

May 17, 2013

On Thursday, Development Alternatives, Inc. (DAI) agreed to make a secret financial payment to Alan and Judy Gross to settle the lawsuit the couple filed against it last year.

DAI lured Alan Gross with a lucrative contract to smuggle banned satellite communications equipment into Cuba on a mission that left him serving a 15-year prison sentence.

The settlement applies to the Beltway contractor and not its codefendant, the United States.  This agreement – Tracey Eaton makes the text available here – is sealed and confidential.  But, the lawsuit has already yielded significant disclosures about U.S. regime change programs in Cuba and the settlement marks a new phase for DAI.

DAI’s profile was raised a few weeks after the arrest, when James Boomgard, its chief executive, insisted in an interview that Alan Gross had done nothing wrong.

“It’s such an innocuous, innocent thing.  I’m not a Cuba expert,” he said, “but other people who understand the politics of this are puzzled as well.”  He went on to say that Gross never met with dissidents and that “there are no satellite phones involved.”

This was a curious, call it Freudian, assertion, which Boomgard should have known to be untrue.

As Desmond Butler wrote in his groundbreaking piece USAID contractor work in Cuba detailed, Alan Gross was bringing in satellite consoles known as BGANS, satellite phones, and other forms of equipment to Cuba, that was the point of this long-standing DAI project, and as he said in a trip report filed before his last trip and capture, it would be “problematic if exposed.”

Problematic indeed.  Unlike the ten spies rolled up and exchanged for spies in Russian prison in 2010, or Raymond Davis, the CIA contractor in Pakistan, freed from prison by payments of “bereavement money” after he murdered two motorists in the street, Mr. Gross has been left sitting in prison for more than three years as some Members of Congress cautioned U.S. officials not to negotiate for his release.

Late last year, the Gross family filed a $60 million law suit against DAI and the United States and accused the defendants of negligence, gross negligence, and the willful disregard of their rights.

In the case of DAI, the family argued when they sent him to Cuba with satellite network communications gear, they didn’t warn him of the risks, protect him from the risks, educate or train him to reduce the risks, and they didn’t stop him from returning to Cuba when they knew he was in danger, because it would have cost DAI a lot of money under their rich regime change contract.

For Mr. Boomgard, who once cooed, “helping people is all that Alan has done in Cuba and elsewhere,” this must have been more than he could bear.  $60 million is a lot of money.

So, DAI, rather aggressively went into court demanding the suit be dismissed because, frankly, Alan Gross wasn’t their problem.  DAI argued it had no duty to protect Alan Gross from the injury he suffered due to his confinement.

DAI claimed it enjoyed “sovereign immunity,” and like the federal government, it could not be sued. Without such immunity, contractors like them could never find pawns like Alan Gross to do their risky business in Cuba.  Ruling against DAI would put the court in a position of undermining the foreign policy of the United States.

This is what they said in January.  By May, they changed their tune; except, of course, so far as Jim Boomgard is concerned.

“We have been clear from day one that Alan’s safe return to his family is our first priority,” he said Thursday in a joint statement with Judy Gross.  “Settling this litigation allows us to work together on that overriding goal.”

Although the settlement includes a non-disclosure agreement between the Gross family and DAI, Peter Kornbluh of the National Security Archive is hopeful that more information could come out.

“Alan Gross himself deserves credit for indirectly admitting, through this lawsuit to the extensive illicit operations he was involved in and exposing the false representations of the Obama Administration about what he, DAI and USAID were doing.  If the State Department doesn’t settle, perhaps Gross’s lawyers can force the release of even more damning information about this controversial U.S. effort to roll back the Cuban revolution.”

That said, we may never know what really made DAI decide to settle.  But here’s a clue.

Two years ago, the company was named a “Top Innovator” in a global poll of international development professionals.

Accepting the award, Dr. James Boomgard effused, “it’s an honor to be recognized for the fresh thinking and resourcefulness we try to bring to the world’s development challenges.  As employee-owners, we have a very personal stake in the ideas, products, and services we are bringing to the marketplace in service of that mission.”

It’s always about the Benjamins.  The settlement undoubtedly saved DAI lots of money, but they won’t tell you how much.  It’s a secret.

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