O'Sullivan's appointment as Director-General of Security was criticised by former Australian Secret Intelligence Service officer Warren Reed, who claimed that O'Sullivan failed to protect Reed's cover while serving as deputy to the Australian Ambassador in Cairo, leading to the abduction of Reed's operational assistant by Egyptian security agents and the closure of the ASIS station in Cairo. Within weeks of his appointment to lead ASIO, the series of Islamic suicide bombings of London occurred amid domestic calls for draconian counter-terrorism laws, followed some months later with the 2005 Bali bombings, leaving four Australian tourists dead. In 2006, O'Sullivan warned that terrorists could carry out attacks on hotels and restaurants in Australia. Following actions by two ASIO agents that a Supreme Court Justice stated was probably criminal and constituted kidnapping under the law, the court dismissed legal proceedings after assessing the ASIO interviews were inadmissible. O'Sullivan defended the actions by the ASIO agents, although he did admit that changes have been made to ASIO's procedures.