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88–253 PDF 2003

S. Hrg. 108–171

NOMINATIONS OF C. STEWART VERDERY, JR.

AND MICHAEL J. GARCIA

HEARING

BEFORE THE

COMMITTEE ON 

GOVERNMENTAL AFFAIRS 

UNITED STATES SENATE

ONE HUNDRED EIGHTH CONGRESS

FIRST SESSION

ON THE

NOMINATIONS OF C. STEWART VERDERY, JR., TO BE ASSISTANT SECRETARY FOR POLICY AND PLANNING, BORDER AND TRANSPORTATION 

SECURITY DIRECTORATE, DEPARTMENT OF HOMELAND SECURITY, 

AND MICHAEL J. GARCIA, TO BE ASSISTANT SECRETARY FOR IMMIGRATION AND CUSTOMS ENFORCEMENT, DEPARTMENT OF HOMELAND SECURITY

JUNE 5, 2003

Printed for the use of the Committee on Governmental Affairs

(

(II)

COMMITTEE ON GOVERNMENTAL AFFAIRS 

SUSAN M. COLLINS, Maine, Chairman 

TED STEVENS, Alaska 

GEORGE V. VOINOVICH, Ohio 

NORM COLEMAN, Minnesota 

ARLEN SPECTER, Pennsylvania 

ROBERT F. BENNETT, Utah 

PETER G. FITZGERALD, Illinois 

JOHN E. SUNUNU, New Hampshire 

RICHARD C. SHELBY, Alabama 

JOSEPH I. LIEBERMAN, Connecticut 

CARL LEVIN, Michigan 

DANIEL K. AKAKA, Hawaii 

RICHARD J. DURBIN, Illinois 

THOMAS R. CARPER, Deleware 

MARK DAYTON, Minnesota 

FRANK LAUTENBERG, New Jersey 

MARK PRYOR, Arkansas 

MICHAEL D. BOPP, Staff Director and Counsel 

JOHANNA L. HARDY, Senior Counsel 

ROB OWEN, Preofessional Staff Member 

JOYCE A. RECHTSCHAFFEN, Minority Staff Director and Counsel 

KEVIN J. LANDY, Minority Counsel 

SUSAN E. PROPPER, Minority Counsel 

JENNIFER E. HAMILTON, Minority Research Assistant 

DARLA D. CASSELL, Chief Clerk 

(III)

C O N T E N T S 

Opening statements: Page 

Senator Collins ................................................................................................. 1

Senator Levin .................................................................................................... 15

WITNESSES 

THURSDAY, JUNE 5, 2003

Hon. John W. Warner, a U.S. Senator from the State of Virginia ...................... 2

Hon. Don Nickles, a U.S. Senator from the State of Oklahoma .......................... 3

Hon. Saxby Chambliss, a U.S. Senator from the State of Georgia ...................... 4

C. Stewart Verdery, Jr., to be Assistant Secretary for Policy and Planning, 

Border and Transportation Security Directorate, Department of Homeland 

Security ................................................................................................................. 5

Michael J. Garcia, to be Assistant Secretary for Immigration and Customs 

Enforcement, Department of Homeland Security ............................................. 7

ALPHABETICAL LIST OF WITNESSES

Chambliss, Hon. Saxby: 

Testimony .......................................................................................................... 4

Garcia, Michael J.: 

Testimony .......................................................................................................... 7

Prepared statement .......................................................................................... 76

Biographical and professional information ..................................................... 82

Pre-hearing questionnaire ............................................................................... 87

Post-hearing questions and responses from Senator Lieberman .................. 141

Post-hearing questions and responses from Senator Levin .......................... 184

Post-hearing questions and responses from Senator Durbin ........................ 189

Nickles, Hon. Don: 

Testimony .......................................................................................................... 3

Verdery, C. Stewart, Jr.: 

Testimony .......................................................................................................... 5

Prepared statement .......................................................................................... 24

Biographical and professional information ..................................................... 27

Pre-hearing questionnaire ............................................................................... 36

Post-hearing questions and responses from Senator Lieberman .................. 72

Post-hearing questions and responses from Senator Levin .......................... 73

Post-hearing questions and responses from Senator Durbin ........................ 74

Warner, Hon. John W.: 

Testimony .......................................................................................................... 2

Prepared statement .......................................................................................... 23

(1)

NOMINATIONS OF C. STEWART VERDERY, JR. 

AND MICHAEL J. GARCIA 

THURSDAY, JUNE 5, 2003

U.S. SENATE, COMMITTEE ON GOVERNMENTAL AFFAIRS, Washington, DC. 

The Committee met, pursuant to notice, at 10:37 a.m., in room 

SD–342, Dirksen Senate Office Building, Hon. Susan M. Collins, 

Chairman of the Committee, presiding. 

Present: Senators Collins and Levin. 

OPENING STATEMENT OF CHAIRMAN COLLINS 

Chairman COLLINS. The Committee will come to order. 

Good morning. Today the Committee on Governmental Affairs is 

holding a hearing to consider the nominations of Charles Stewart 

Verdery to be Assistant Secretary for Policy and Planning in the 

Border and Transportation Security Directorate of the Department 

of Homeland Security, and Michael J. Garcia to be the Assistant 

Secretary for the Bureau of Immigration and Customs Enforcement 

at the Department of Homeland Security. 

The Department of Homeland Security was officially born on 

January 24 of this year. It is however, still far from being fully 

staffed. That is why it is so important for this Committee and the 

Senate to move quickly to fill the openings at the Department so 

that it can move forward with its mission of protecting our country 

from terrorist attacks. 

I think I know how a minister or a priest feels now. But let me 

say that we are absolutely delighted to have family members 

present so that they can participate in this hearing. 

Mr. Verdery will face many challenges as Assistant Secretary for 

Policy and Planning. The Border and Transportation Security Directorate is charged with the responsibility for securing our Nation’s borders and transportation systems. To accomplish this 

daunting task, the functions of the U.S. Customs Service, the Immigration and Naturalization Service’s enforcement functions, the 

Animal and Plant Health Inspection Service, the Transportation 

Security Administration, the Federal Law Enforcement Training 

Center, and the Federal Protective Service have all been transferred to this directorate. 

Streamlining and better coordinating their functions are critical 

steps in improving security. As the Department acts to improve security at our borders and transportation systems, it must balance 

those efforts with other national interests. In securing our borders, 

the Department must be careful to ensure that the flow of legitiVerDate 0ct 09 2002 10:13 Oct 30, 2003 Jkt 088253 PO 00000 Frm 00005 Fmt 6633 Sfmt 6633 C:\DOCS\88253.TXT SAFFAIRS PsN: PHOGAN
2

1The prepared statement of Senator Warner appears in the Appendix on page 23. 

mate commerce is not unduly impeded. Families and businesses in 

border communities know particularly well how important it is for 

many Americans to be able to travel back and forth without undue 

restrictions. 

The Department also must balance security with privacy concerns and civil liberties. For example, concerns have been raised regarding programs such as CAPPS–II. The department must strive 

to develop screening processes that will be effective in identifying 

and preventing terrorists from entering our country but which do 

not unduly invade the privacy of law-abiding citizens. 

As the past Acting Director of the Immigration and Naturalization Service, Mr. Garcia knows these issues well. He knows the 

issues and the battles that lie in front of him. The Bureau of Immigration and Customs Enforcement brings together some 14,000 employees to focus on the enforcement of immigration and customs 

laws and the protection of Federal buildings. It encompasses the 

immigration and customs investigations and intelligence functions, 

Custom’s air and marine interdiction, immigration detention and 

removal, and the Federal Protective Service. 

One of the major challenges awaiting Mr. Garcia may be from 

within the Department itself, ensuring proper cooperation, communication, and coordination among key components of the new Department. 

The two nominees before us today will be charged, if confirmed, 

with carrying out extraordinarily important missions and taking on 

the many challenges confronting the new Department. The experience and background that they bring to the Department, I believe, 

will serve them well as they tackle their new responsibilities. 

It is now my great pleasure to recognize my colleagues who are 

here today. I think it speaks extremely well for these nominees 

that they have with them such distinguished members of the U.S. 

Senate who are willing to take time from their busy schedules to 

introduce them. 

I am trying to figure out who has seniority here, but I think I 

will go with my Chairman on the Armed Services Committee, always a wise choice, and I will call on the distinguished senior Senator from the Commonwealth of Virginia, Senator John Warner. 

STATEMENT OF HON. JOHN W. WARNER,1 A U.S. SENATOR 

FROM THE STATE OF VIRGINIA 

Senator WARNER. I thank you very much, Madam Chairman. I 

guess this is my 25th year, quarter of a century, in this institution. 

So maybe I have a year or two on some of my colleagues. Not too 

much on Senator Nickles, but I do see a freshman at the end, and 

he is a powerful voice already in this body. 

But we are here for very important business, Madam Chairman 

and hearing these young voices of the children just reminds me of 

when I came before a committee so many years ago for advise and 

consent, and my children were small. And it is very important that 

the families join. So I would like to start by asking Stewart 

Verdery, who is a part of my family in the Senate, and I look upon 

my staff as a family, would you introduce your family? 

3

Mr. VERDERY. Sure, of course, Senator. Thank you. 

My mother, Linda; my wife, Jenny; my father, Charlie; my stepmother, Marty; father-in-law, Harvey; my daughter Isabelle; my 

son Chase who is out in the hall. My mother-in-law, Phyllis; and 

sister-in-law, Lisa. 

Chairman COLLINS. Thank you. 

Senator WARNER. Given that we have so many colleagues waiting, I will put my full statement in the record. 

Chairman COLLINS. Without objection. 

Senator WARNER. But this fine nominee, selected by the President and the Secretary of Homeland Security, has had a broad and 

extensive career. And each challenge he has met and succeeded 

and left a record of accomplishments. They are all documented in 

here very carefully. 

And it is my privilege to put my complete credibility behind this 

man, such as it is in this institution, to say that he will do extremely well in this position. 

As chairman of the Rules Committee at one time, Stewart 

worked for me and performed a number of very important legislative tasks and the Committee has investigation responsibilities, as 

this Committee does, all of which were performed wonderfully. 

As a matter of fact, he performed so well that the leadership 

stole him. And I will let the Senator from Oklahoma explain the 

circumstances under which he was hijacked out of my office. 

I thank the Chairperson, and you are on your own. 

Chairman COLLINS. I thank the Senator from Virginia. 

I am very pleased to call on my friend and colleague, the senior 

Senator from Oklahoma and the Chairman of the Budget Committee, for his remarks. 

STATEMENT OF HON. DON NICKLES, A U.S. SENATOR FROM 

THE STATE OF OKLAHOMA 

Senator NICKLES. Madam Chairman, thank you. 

I wish to join with Senator Warner in urging the speedy confirmation. I very much appreciate your having this confirmation 

hearing and I would urge colleagues on this Committee to vote in 

the affirmative as soon as possible for the confirmation of Stewart 

Verdery to be Assistant Secretary for Border and Transportation, 

Department of Homeland Security. 

I have had the pleasure, Senator Warner mentioned he is part 

of the family, and Stewart Verdery is. He and his wife, Jenny, were 

married while they were on my staff, or he was on staff and we 

wanted to have Jenny on our staff. So I have been friends with 

both for a long time. I knew Stewart when he was counsel to the 

Rules Committee. Also, he served as counsel on the Judiciary Committee, and did an outstanding job in those capacities. 

He has experience in the private sector, as well, before coming 

to the Senate, graduating from the University of Virginia. 

I have had the pleasure of working with him when he was general counsel to me as Assistant Majority Leader. He just did a fantastic job. 

He not only worked for me, but frankly worked for the entire 

U.S. Senate, and in that capacity performed a number of functions. 

As all Senators do, we deal with a lot of issues, a lot of legal issues. 

4

And Stewart Verdery was my legal counsel and he did a good job 

not only for me but for the entire Senate. 

So Madam Chairman, it is with great pleasure and honor that 

I recommend to this Committee and to the full Senate a friend and 

a person who I know will do an outstanding job as Assistant Secretary of the Department of Homeland Security. 

Chairman COLLINS. I thank the Senator very much for his comments. I know that he has a busy schedule and I would be happy 

to excuse him if he needs to leave. 

It is now with great pleasure that I turn to an outstanding new 

Member of the Senate, Senator Saxby Chambliss, who represents 

the State of George so ably. We are very pleased to have you here 

today to introduce Mr. Garcia. 

STATEMENT OF HON. SAXBY CHAMBLISS, A U.S. SENATOR 

FROM THE STATE OF GEORGIA 

Senator CHAMBLISS. Thank you, Madam Chairman. 

It is indeed a privilege and a pleasure for me to be here appearing before you, and I appreciate and thank you for the great work 

that you do on this Committee. You and I serve on the Armed Services Committee together and it is a pleasure to serve there with 

you. 

I am pleased to introduce Michael Garcia as the President’s 

nominee to be Assistant Secretary for the Bureau of Immigration 

and Customs Enforcement within the Department of Homeland Security. 

I would also like just to take a minute to recognize his wife, 

Liana, and their three children, Manuel, Sophia, and Michael. And 

those of us who have children know and understand that two out 

of three is not bad, when you get them in a scenario like this. They 

are certainly beautiful children, and a beautiful and very supportive wife. They will be a great asset to Michael in his position. 

I want to say some things about Michael specifically, but one 

thing that really pleases me about this nominee to the Department 

of Homeland Security is the fact that I have had the opportunity 

to work with Secretary Ridge from the very first day the President 

considered him for his original position, and I have been extremely 

impressed with the fact that the first thing he did was to surround 

himself with good people. 

Michael is one of these folks who comes from the private sector, 

and that always impresses me, when somebody is willing to come 

from the private sector into the public sector and make a commitment to public service. This young man has done that and he has 

distinguished himself significantly during his years in public service. 

He served as Acting Commissioner of the Immigration and Naturalization Service from December 2002 to February 2003. In his 

new role at the Enforcement Bureau, I am confident he will continue to improve the security of this country from the threat of terrorism. 

Mr. Garcia previously served as an Assistant Secretary of Commerce for Export Enforcement from August 2001 to November 

2002. He is a distinguished Federal prosecutor who has worked in 

counter-terrorism and national security issues for 10 years. In fact, 

5

1The prepared statement of Mr. Verdery appears in the Appendix on page 25. 

he is the only nominee who has successfully prosecuted and convicted a terrorist to date. 

His prosecutions include the defendants who bombed two American embassies in East Africa, the defendants in the first World 

Trade Center bombing, and the defendant in the conspiracy to 

plant bombs aboard 12 American passenger airlines in the Far 

East. For these cases and his prosecution thereof, Mr. Garcia received the Attorney General’s award for exceptional service, the 

Department of Justice’s highest reward. 

Madam Chairman, it is indeed a great privilege and a pleasure 

for me to recommended and to introduce to you Michael Garcia this 

morning. Thank you. 

Chairman COLLINS. Thank you very much, Senator. We very 

much appreciate your taking time to be here today, and it certainly 

speaks well of the nominee, that you are willing to do so. So thank 

you for your testimony. 

Both nominees have filed responses to biographical and financial 

questionnaires, answered pre-hearing questions submitted by the 

Committee, and had their financial statements reviewed by the Office of Government Ethics. Without objection, this information will 

be made part of the hearing record with the exception of the financial data, which are on file and available for public inspection in 

the Committee’s office. 

Our Committee rules require that all witnesses at nomination 

hearings give their testimony under oath, so I am going to ask that 

you each stand and raise your right hand. 

[Witnesses sworn.] 

Chairman COLLINS. Thank you. You may be seated. 

Mr. Verdery, do you have a statement that you would like to 

make at this time? 

TESTIMONY OF C. STEWART VERDERY,1 TO BE ASSISTANT 

SECRETARY FOR POLICY AND PLANNING, BORDER AND 

TRANSPORTATION SECURITY DIRECTORATE, DEPARTMENT 

OF HOMELAND SECURITY 

Mr. VERDERY. I do, Madam Chairman. I will try to keep this relatively quick. 

Madam Chairman and the Governmental Affairs Committee, it is 

a great honor to be before you today as a nominee to be an Assistant Secretary for Homeland Security for Policy and Planning at the 

Border and Transportation Security Directorate. 

This is a very unwieldy title but perhaps it is indicative of the 

challenges that this new Department will encounter in its first year 

as the primary face of our country’s efforts to deter, detect, and defend against acts of terrorism. 

I am grateful for the kind introductions of my two former bosses, 

Senators Warner and Nickles. Senator Warner was kind enough to 

give me my start in public service. And his career, especially three 

decades of leadership on national security issues, is a particular inspiration to those of us who grew up in Virginia, as I did. 

As Senator Nickles mentioned, he and I worked through impeachment and Columbine and campaign finance, and other issues 

6

and events big and small. And each day in the Capitol, working for 

him, was a day I just loved coming to work. 

The most memorable of those days, of course, were those following September 11, 2001. We all remember well the bipartisan 

effort which spawned a host of responses to the terrorist attacks, 

including the Patriot Act, and the creation of the Transportation 

Security Administration, TSA. Those days exemplified the kind of 

public service which is truly gratifying. In that spirit, I hope and 

I believe that this new Department of Homeland Security will embody a national endeavor to secure our borders, our economy, our 

freedoms and our lives. 

Thanks to Senator Warner’s kind introduction, I have already introduced my family members and I just would like to say for the 

record how much I appreciate them being here and their support 

for me and my career. It means a lot, of course, and I could not 

do it without all of them. 

The Office of Policy and Planning, which I would direct if confirmed, occupies a key role in DHS, and specifically in the Border 

and Transportation Security Directorate, BTS. The office is charged 

to develop, evaluate, and coordinate policy for BTS. 

In advising the BTS Under Secretary, Asa Hutchinson, the Assistant Secretary for Policy is responsible for working on a day-today basis with the agencies which comprise much of what I like to 

call the meat and potatoes of homeland security. Thus, the Policy 

Office will seek to ensure that the policies implemented by BTS 

component agencies, which are the Bureau of Immigration and 

Customs Enforcement—for which Mr. Garcia has been nominated 

and is actively running—the Bureau of Customs and Border Protection, TSA, the Federal Law Enforcement Training Center, and 

the Office of Domestic Preparedness, are designed to fulfill BTS’ responsibilities. 

This office will also coordinate BTS policy initiatives with other 

agencies within DHS, such as the Bureau of Citizenship and Immigration Services, and outside DHS, such as Departments of State 

and Justice. To address these duties, BTS is building a top-notch 

staff of policy professionals with deep experience in immigration, 

customs, transportation, international affairs, and strategic planning. 

My full statement, which I will place in the record, goes through 

some of the most important tasks that this office will be working 

on, including identifying and denying entry to those trying to enter 

the country illegally or to do us harm, securing our transportation 

systems, constructing our anti-terrorism efforts so they enhance 

and not diminish traditional missions of the agencies, such as combating narcotics, and fulfilling all of these responsibilities within 

the bounds of the law, with respect for our foreign neighbors, and 

with appropriate communication with the Congress, and with the 

public at large. 

I am confident that if confirmed my experience both in the public 

and private sectors will serve me well in this new endeavor, and 

my full statement goes into some of the experiences I have which 

Senator Warner and Nickles have already detailed. 

I joined DHS as a consultant in April while my nomination was 

pending before your Committee. And each day I have seen firstVerDate 0ct 09 2002 10:13 Oct 30, 2003 Jkt 088253 PO 00000 Frm 00010 Fmt 6633 Sfmt 6633 C:\DOCS\88253.TXT SAFFAIRS PsN: PHOGAN
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1The prepared statement of Mr. Garcia appears in the Appendix on page 77. 

hand the skill and determination of dedicated public servants such 

as Secretary Ridge, Under Secretary Hutchinson, my colleague Michael Garcia, and the rest of the DHS leadership. These officials, 

of course, are represented in the field by over 170,000 professionals 

dedicated to protecting our Nation. 

If I am confirmed, I am extremely excited to travel to our border 

crossings, our ports, our airports, and other sites on the front lines 

to learn from these agents and inspectors who form the backbone 

of our homeland security regime. 

Last, Madam Chairman, having been a creature of the Congress, 

I believe in Congress’s prerogative to obtain timely and accurate information about Executive Branch activities. If confirmed, I will 

make every effort to work with this Committee and those other 

committees which create the authorities and budgets under which 

we operate. 

Thank you again for the chance to appear before you today and 

I look forward to any questions you might have. Thank you. 

Chairman COLLINS. Thank you very much. Your full statement 

will be made part of the record. Mr. Garcia. 

TESTIMONY OF MICHAEL J. GARCIA,1 TO BE ASSISTANT SECRETARY FOR IMMIGRATION AND CUSTOMS ENFORCEMENT, 

DEPARTMENT OF HOMELAND SECURITY 

Mr. GARCIA. Thank you. Good morning, Madam Chairman. 

Let me thank you for the gracious welcome that you have given 

to my family here today. Their support, obviously, is so important 

as well as their sometimes quite vocal support today. 

It is an honor to appear before the Committee as the nominee 

for the position of Assistant Secretary for the Bureau of Immigration and Customs Enforcement, or BICE, within the Department of 

Homeland Security. 

I would like to thank the President for the confidence he has 

shown in me by again nominating me to serve as a leader of a critical law enforcement agency within his administration. 

The leadership demonstrated by Congress in swiftly passing the 

Homeland Security Act, and the President’s commitment to expeditiously implement the Act, are monumental achievements in the 

defense of our Nation against the threat of terrorism. 

If confirmed, I will continue to implement the Act consistent with 

its intent and will remain focused on its overarching mission of 

providing greater security to our country. 

For the past 10 years, my career in public service has been devoted to counter-terrorism and national security issues. This experience provides me with a unique perspective regarding the threats 

confronting our homeland and the tools and capabilities required to 

effectively meet them. I would bring this perspective and experience to the job of Assistant Secretary for Immigration and Customs 

Enforcement should I be confirmed in this position. 

I would like briefly to describe my career in public service. After 

completing a clerkship for Judith Kaye on the New York Court of 

Appeals, I had the privilege of joining the U.S. Attorney’s Office for 

the Southern District of New York. I joined that office at a unique 

8

time in its history. Six months after my appointment as an Assistant U.S. Attorney in February, 1993, the first attempt to topple the 

World Trade Center took place. It was, at the time, the single most 

devastating act of terrorism ever committed on U.S. soil. I was one 

of the prosecutors assigned to lead the investigation into that attack. 

This was new territory for law enforcement. From the investigative techniques brought to bear to the laws used to bring the terrorists to justice, the case was a new model for terrorism prosecutions. All available tools were used, including statutes covering violations of the immigration law. 

Agents from every Federal law enforcement agency brought their 

authorities and expertise to the case. As a member of the prosecution team, I was responsible for guiding this effort, presenting evidence to gain indictments, and presenting the case in court. All 

four defendants were convicted on all counts in that case, and I received the Attorney General’s Award for Exceptional Service, the 

highest award presented by the U.S. Department of Justice, for my 

work. 

My work on the World Trade Center bombing case would define 

my career in government service. Less than 1 year after the verdict 

in the World Trade Center case, an explosion took place halfway 

around the world in Manila, where Ramzi Yousef, the mastermind 

of the World Trade Center attacks, and his associates were mixing 

chemicals in an apartment in preparation for attacks on 12 U.S. 

airplanes. Their plan was to detonate bombs aboard those planes 

while they were airborne and filled with passengers on their way 

from Asia to the United States. I flew to Manila and directed the 

investigation and prosecution of that terrorist conspiracy. I oversaw 

a case that, unlike the 1993 World Trade Center bombing, involved 

terrorist activity outside the United States aimed at this country’s 

national security. 

In bringing charges against Yousef and his co-conspirators, including then-fugitive Khalid Sheikh Mohamed, I was the first to 

use some of the antiterrorism statutes passed by Congress after the 

Trade Center bombing. 

I also coordinated the cooperation in the trial of a number of foreign governments. In 1996, Yousef and two other terrorists were 

convicted on all counts. I again received the Attorney General’s 

Award for Exceptional Service for my work on that case. 

In 1998, followers of Osama Bin Laden bombed our embassies in 

Nairobi, Kenya and Dar es Salaam, and Tanzania. More than 200 

persons were murdered in these attacks. I was assigned as one of 

the lead prosecutors on the case against four al Qaeda operatives 

who stood trial in New York on charges related to those attacks. 

In preparing this case, I managed and led a team of investigators 

and staff in a worldwide effort to gather evidence, return terrorists 

to the United States, and coordinate efforts with the intelligence 

community. The jury returned guilty verdicts in this trial on all 

302 counts. 

The case raised a number of issues of first impression with regard to crimes committed against U.S. interests overseas and the 

intersection of criminal investigations and intelligence gathering. 

9

In addition to the Attorney General’s Award for Distinguished 

Service, I was awarded the CIA’s ‘‘Agency Seal Medallion’’ for my 

efforts in coordinating our criminal case with the intelligence community. 

My extensive management of complex counter-terrorism prosecutions has taught me important lessons about counter-terrorism that 

I would bring to my role in BICE if confirmed. Three of the most 

important are: First, the need to use all of our enforcement tools 

and authorities in support of our counter-terrorism efforts. 

Second, the importance of coordination across agencies and with 

the Intelligence Community. 

And third, that prevention and disruption need to be vital components of our counter-terrorism strategy. 

After the guilty verdicts in the embassy bombing case, I was 

nominated by the President and confirmed by the Senate as Assistant Secretary of Commerce for Export Enforcement. In this position, I led an enforcement agency with a national security mission, 

preventing sensitive technology from falling into the hands of those 

who would use it to harm U.S. national security. 

In December 2002, the President designated me Acting Commissioner of the INS. As Acting Commissioner, I was honored to lead 

the transition of that agency into the Department of Homeland Security, while at the same time ensuring that the critical day-to-day 

work of the Agency continued uninterrupted. This was a monumental task, involving dissolution of a 36,000-person Agency. 

After the creation of DHS and the transfer of INS functions to 

that department, I was named Acting Assistant Secretary of DHS 

for the Bureau of Immigration and Customs Enforcement. BICE, 

with 14,000 employees and 5,500 special agents, is the second largest investigative Federal law enforcement agency. On March 1, 

that agency stood up a management structure that enabled all 

BICE employees to continue on with their critical enforcement missions while seeking to take advantage of the new opportunities presented by having the tools and authorities of the legacy components 

of INS, Customs, and the Federal Protective Service. 

This is the challenge of BICE, to create a unified law enforcement agency capable of bringing all its law-enforcement tools to 

bear in an efficient and effective manner on the vulnerabilities to 

our homeland security. We are in the process of a reorganization 

that will provide BICE with a unified investigative structure, both 

in the field office and at headquarters. 

The reorganization will also create one unified intelligence division from the Agency’s legacy components. If confirmed, I would 

bring to the task of leading this new enforcement agency a perspective gained from a career dedicated to antiterrorism and national 

security. I would use this experience to guide my vision of a unified 

Agency, committed to a partnership with its Federal, State and 

local counterparts, and committed to full and fair application of the 

tools and authorities given to BICE. 

Madam Chairwoman, in conclusion, I would again like to commend Congress on its efforts to protect the American people from 

those who seek to do us harm. It is an honor to be nominated as 

the Assistant Secretary to lead dedicated law-enforcement officers 

in this unprecedented time. 

10

If confirmed, I vow to work together with this Committee and 

with Congress to strengthen our Nation’s defense and protect the 

American people. 

Thank you again for your consideration, and I look forward to 

answering your questions. 

Chairman COLLINS. Thank you very much, Mr. Garcia. 

I am going to begin my questioning this morning with standard 

questions that we ask of all nominees for the record. There are 

three of them. 

First, is there anything that you are aware of in your background 

which might present a conflict of interest with the duties of the office to which you have been nominated? Mr. Verdery. 

Mr. VERDERY. Madam Chairman, as part of my written answers, 

I have detailed several issues I have discussed with the designated 

ethics officer. I do not feel that any of them are an actual conflict 

of interest, but they have been disclosed in the written answers to 

your questions. 

Chairman COLLINS. Mr. Garcia. 

Mr. GARCIA. None that I am aware of. 

Chairman COLLINS. Second, do you know of anything personal or 

otherwise that would, in any way, prevent you from fully and honorably discharging the responsibilities of the office to which you 

have been nominated? Mr. Verdery. 

Mr. VERDERY. I do not. 

Chairman COLLINS. Mr. Garcia. 

Mr. GARCIA. I do not. 

Chairman COLLINS. And third, do you agree without reservation 

to respond to any reasonable summons to appear and testify before 

any duly constituted committee of Congress if you are confirmed? 

Mr. Verdery. 

Mr. VERDERY. I do. 

Chairman COLLINS. Mr. Garcia. 

Mr. GARCIA. Yes, I do. 

Chairman COLLINS. Well, you passed those very well. Now we 

will turn to some substantive questions. 

Mr. Garcia, an issue that has arisen in my home State of Maine 

lately has affected many of the residents in border communities 

where there are very small numbers of people living but they cross 

freely back and forth through border crossings to Canada. The Immigration Service and Customs have closed or restricted the hours 

of some of these border crossings, which has created a number of 

difficulties for many of my constituents. 

Just to give you a fuller understanding of the border communities, frequently family members live on the Canadian side of the 

border. People cross the border to go to church, for medical care, 

to buy groceries, to visit friends, even to work. So the crossings are 

very routine and occur literally daily. 

What has happened with some of these smaller crossings is the 

Federal Government has greatly restricted the hours that the 

crossings are open. For example, they may be closed from Friday 

at 4 o’clock until Monday at 8 a.m. Thus, in one community’s case, 

restricting the ability of citizens to cross the border to go to church 

on the Canadian side. 

11

Could I have a commitment from you to work with my office to 

try to come up with solutions that respect the traditions of these 

communities while at the same time recognizing the new security 

considerations that we face in a post-September 11 environment? 

Mr. GARCIA. Absolutely, Madam Chairman. And in fact, you have 

my commitment, it is also one of the objectives of the enabling legislation, the statute creating the Department of Homeland Security. One of the missions of this Department is to protect national 

security but also to protect, and not interfere with, the free and 

lawful flow of goods and people across our borders. We are committed to that mission and I look forward to working with you, and 

with my colleagues in the other bureaus and agencies in affecting 

that very important part of our mission. 

Chairman COLLINS. Mr. Garcia, I do appreciate that commitment. 

Last month a terrible tragedy occurred in Victoria, Texas in 

which 19 illegal immigrants died in a tractor-trailer as they were 

being smuggled across the border into the United States. Could you 

talk to us about how this case was investigated by your Department? How were resources allocated? Because I think it would help 

the Committee understand how the new organization of the Department is being brought to bear when you have a terrible tragedy 

such as that one. 

Mr. GARCIA. Yes, Senator. The case in Victoria, Texas, is a terrible tragedy, 19 people murdered in the back of a tractor-trailer 

near our Southern border. 

Our response to that tragedy, I think, exemplifies what we bring 

now as one unified agency within BICE, within the Department of 

Homeland Security. Approaching that case, instead of the traditional way of approaching it, which would be to send experienced 

investigators in anti-smuggling to the scene, we did that. But in 

addition, we sent assets from our other legacy components. 

So in the Victoria case, we sent immigration investigators 

trained in anti-smuggling. We sent Customs investigators, trained 

in financial crimes, to bring that expertise to the smuggling field, 

something we could not do in the past. We brought technical experts from what was the Customs Service, now part of BICE, to the 

location in Texas to bring their expertise to bear in tracking telephones and other follow up of technical investigative avenues. 

As a result of that effort, which involved incorporation of all our 

enforcement tools, we saw tremendous success working with the 

U.S. Attorneys Office. Within a matter of days there were 11 

charges filed against defendants, and I believe eight individuals are 

in custody charged with crimes related to that terrible tragedy. 

In fact, the U.S. Attorney Shelby from Houston has made statements in Houston to the effect that this is the model for going forward that he would like to see. That in fact, BICE’s response to 

this terrible crime is what the Department of Homeland Security 

should be doing to bring all our assets to bear in new ways, in 

more effective ways, on the crimes that are within our jurisdiction. 

We are going to take our model from Victoria and use it to go 

forward as best practices to approach anti-smuggling and to approach other criminal acts within our jurisdiction. So, I think Victoria showed that BICE could respond as a unified agency and 

12

showed us the road map for going forward and being an effective 

and unified law enforcement agency. 

Chairman COLLINS. Thank you. 

Mr. Garcia, immigration issues are being dealt with in three separate bureaus within the new Department, the Bureau of Immigration and Customs Enforcement, the Bureau of Customs and Border 

Protection, and the Bureau of Citizenship and Immigration Services. 

The Immigration and Naturalization Service historically has 

been a troubled agency and one that has had difficulties in reconciling its service functions with its enforcement functions. In fact, 

I would say that if you talked to Members of Congress, you will 

hear more complaints about INS than virtually any other Federal 

agency. 

How do you plan to improve the performance of these bureaus 

and also ensure that they coordinate their efforts better and not 

duplicate each other’s efforts, given the three separate bureaus 

with joint responsibility. 

Mr. GARCIA. I have heard a number of complaints from Members 

of Congress. It is obviously one of our top priorities. I think first, 

the structure that we have been given by Congress, the enabling 

legislation, addresses a number of the issues that INS had in the 

past. By breaking us into basically three separate components, we 

are able to focus on our specific missions more effectively, more efficiently, inspectors with inspectors at the border, investigators 

with our investigators within BICE, our important service groups 

reporting directly to the Deputy Secretary. 

The challenge for us now, given that advance in our ability to 

function, is to continue to coordinate and cooperate among those 

agencies so we do not have duplication, so we do not have people 

going at cross-purposes, so we coordinate policy and the way policy 

is implemented. 

We have done a number of things to make sure that this happens. I touched on them in detail, I believe, in my written responses to the Committee’s questions, but I have a strong relationship with Commissioner Bonner and with Acting Director Aguirre. 

And I am in communication with them directly. 

We have established working groups at very high levels to address specific issues and implement procedures. And we have designated very high-level persons within our front offices to act as liaison, involved in issues that are interagency, involved in the 

issues of our colleagues as they go forward as BCIS and BCBP. 

And we are doing all of those things to bring to bear our tools in 

an effective way, but also to make sure that we are coordinating 

as we go forward. And I believe that is the challenge, now that we 

have gone forward as separate agencies, the challenge is to also 

maintain good communication and good coordination. 

Chairman COLLINS. The Department of Justice’s Inspector General released a report recently that criticized the handling of hundreds of immigrants who were taken into custody by the Federal 

Government in the months following September 11. The report 

highlighted some 21 recommendations dealing with issues such as 

the need to develop uniform arrest and detainee classification policies, methods to improve information sharing among Federal agenVerDate 0ct 09 2002 10:13 Oct 30, 2003 Jkt 088253 PO 00000 Frm 00016 Fmt 6633 Sfmt 6633 C:\DOCS\88253.TXT SAFFAIRS PsN: PHOGAN
13

cies, and improving the oversight of detainees housed in contract 

facilities. 

I realize that the report has only been out for a brief time, but 

could you give us your comments on it? And what role will you play 

in ensuring that these recommendations by the Inspector General 

will be implemented? 

Mr. GARCIA. I have seen the report and I have read it. We are 

committed at BICE to working to respond to the recommendations 

made by the Inspector General in that report, obviously very serious and important issues raised in that study. We have already 

begun work with our colleagues, both within BICE, within the Department of Homeland Security, and also within the Department of 

Justice and government in responding to the IG’s concerns and to 

the recommendations and the issues raised there. 

I think it is a very important study properly done, to look at a 

time in our history that was unique. And it is important for us now 

to look at that, look at the IG’s recommendations, and go forward. 

Chairman COLLINS. Mr. Verdery, the Office of Domestic Preparedness is currently within the Border and Transportation Security Directorate. And that has never made a great deal of sense to 

me. As you know, ODP is responsible for allocating the homeland 

security grants through the States to our first responders. 

I have introduced legislation that moves the Office of Domestic 

Preparedness from the Border and Transportation Security Directorate to the Office for State and Local Government Coordination 

within the Secretary’s office. 

Do you agree that ODP should be moved out of the Directorate 

that you are going to be involved with? And has there been any discussion at DHS about this transfer? 

Mr. VERDERY. It is my understanding that the Bush Administration and the Homeland Security Department officially support your 

legislation and are anxious to get it moving, and get it passed. I 

agree with that position. 

The one thing I would add to that is ODP, while it is within BTS, 

is actively working to evaluate grants, to get money out. Billions 

of dollars are flowing out to first responders through the States. 

And so we are actively fulfilling our responsibilities now while supporting your legislation to move that office to the Secretary’s office. 

Chairman COLLINS. A major project for BTS is the development 

and implementation of the U.S. VISIT System. I believe that it is 

very important that we secure our borders. But, as I indicated in 

my earlier remarks, we must also ensure that the United States remains open for business. And I would be concerned if this new system were to somehow hamper the ability of legitimate visitors and 

commerce to enter the United States. 

What policy issues do you believe need to be addressed to ensure 

that the U.S. VISIT System, or any other entry/exit system, would 

be able to do the job that it is intended for without causing long 

delays or problems at our border crossings? 

Mr. VERDERY. The U.S. Visit System, which is now the name for 

the entry/exit system which was mandated by Congress in several 

different pieces of legislation, is a top priority for the Department 

and for the Under Secretary. The program office for the U.S. Visit 

System reports directly to Under Ssecretary Hutchinson as of about 

14

a month ago. I cannot think of anything the Department spends 

more time on, especially the Under Secretary, than on this issue. 

As you know, the U.S. Visit entry/exit system will be phased in 

over several years, with it applying to air and seaports for the end 

of this year, and land entry facilities and exit facilities in following 

years. That phase-in gives us time to build systems, both hardware, software, and infrastructure, to try to alleviate any kind of 

backlogs that would be created by the checks that passengers will 

undergo as they enter and exit the country. 

We are working feverishly to make sure that the checks of passengers are done quickly, that they had access to relevant databases, and that it does not slow down traffic. Again, for this year 

that means airports and seaports. 

We are anxiously moving a spending plan to the Congress to get 

money flowing for this year’s deployment. And it is my understanding your Committee has asked for a briefing on this issue, 

and we would be happy to do that as soon as we can get it scheduled. 

Chairman COLLINS. Thank you. 

Mr. Verdery, I recently learned that the Transportation Security 

Administration has submitted a proposal to the Appropriations 

Committee to reallocate some 40 percent of the funding that is appropriated for port security grants. This is a huge concern to me 

personally, and to many Members of this Committee. We have held 

hearings which indicated, from many experts, that port security remains, if not the biggest vulnerability facing the United States, certainly one of them. 

It is obviously much more difficult to secure a seaport than an 

airport, and it is critical that funding appropriated for the process 

of improving port security go forward. In fact, the Coast Guard has 

reported that it believes it will cost more than $4 billion to improve 

port security over the next decade. 

TSA’s proposal makes me question whether the new Department 

is giving port security the priority that it clearly warrants. I have 

asked Secretary Ridge for an update of the Department’s plan, but 

in your new position I would like to know how you plan to ensure 

that port security receives the attention and the funding it deserves? 

Mr. VERDERY. Madam Chairwoman, I have seen the letter you 

sent to Secretary Ridge earlier this week. It is clear that the Department is doing a lot in the area of port security, everything from 

the Container Security Initiative, which attempts to secure the 

large containers coming into our country, to money that the Coast 

Guard is spending on grants, to the vulnerability assessments that 

are being undertaken by the Information Analysis and Infrastructure Protection Directorate at DHS. There is a lot going on in this 

field. 

Now you mentioned specifically the reprogramming issue, of 

money at TSA for port security. It is my understanding that TSA 

has spent, I believe, several hundred million dollars in port security money over the last couple of years but that some money is 

being targeted for reprogramming to meet the statutory requirements that TSA is under in terms of aviation safety, which is obviVerDate 0ct 09 2002 10:13 Oct 30, 2003 Jkt 088253 PO 00000 Frm 00018 Fmt 6633 Sfmt 6633 C:\DOCS\88253.TXT SAFFAIRS PsN: PHOGAN
15

ously a top priority of the administration and of the Congress in 

light of the events of September 11. 

If I am confirmed, though, I will be happy to work hard with our 

budget folks to try to come up with additional resources for port 

security. I will be taking a look at TSA’s spending. As you know, 

I was not part of the development of last year’s budget but I am 

anxious to get over there and begin working on this year’s and next 

year’s budget plans. 

Chairman COLLINS. Thank you. Senator Levin. 

OPENING STATEMENT OF SENATOR LEVIN 

Senator LEVIN. Thank you, Madam Chairman. I will try to be 

relatively brief. It looks like the kids are ready for lunch, but I do 

have a short opening statement as well as a few questions of our 

nominees. 

With this hearing, we are moving closer to a fully functioning 

Department of Homeland Security. And today’s nominees, if confirmed, will play crucial roles in U.S. border security, immigration 

policy, with critical implications not just for national security but 

also for law enforcement, transportation, trade, and even protecting 

the public’s health with issues like SARS. 

It is critical that we get more top level personnel confirmed at 

the Department because right now there is a lot of confusion at the 

Agency, confusion about who is responsible for what, who can answer questions, and when needed programs are going to get underway. Here are just a few examples. 

For 2 years a number of us have been pushing Customs to set 

up reverse inspection programs, where for example, U.S. personnel 

can inspect cars and trucks before they cross our bridges or travel 

through our tunnels to enter the United States. Clearly better for 

security and for alleviating traffic congestion. 

We were able to include language in the 2003 Omnibus Appropriations Bill authorizing reverse inspections. And Michigan, for 

example, is ready, willing, indeed eager to set up a pilot program 

in Detroit at the Ambassador Bridge, which I believe carries more 

freight across into the United States and Canada than any other 

single crossing. Indeed, a large percentage of the total imports and 

exports in this is our biggest customer. 

Customs has told us, DHS has told us, the Department has told 

us, and Mr. Verdery, you have told us that reverse inspections are 

a good idea. But after 2 years, we have yet to get anyone to move 

even on a pilot program. That is difficult to understand given the 

merits of the issue, the importance to our national security and 

trade, why we have been unable to get this acted upon. 

Another example of confusion involves the issue of money laundering. For years Customs has taken the lead in complex Federal 

money-laundering investigations, developing an expertise that is 

really unmatched in any other Federal agency. Due to this expertise, after the September 11 tragedy, the administration directed 

Customs to set up an interagency effort called Operation Green 

Quest, to take the lead in identifying and stopping terrorist financing, which often uses the same offshore banks, wire transfers, and 

transfer pricing techniques that other money-launderers use to 

hide drug money or the proceeds of financial fraud. 

16

This Committee’s Permanent Subcommittee on Investigations 

has conducted a number of money laundering investigations over 

the years and become aware of the Customs expertise and ongoing 

work in this area. So it was troubling to me to read in the paper 

that the administration recently approved a plan to shift responsibility for money-laundering from Green Quest to the FBI section 

which has much less expertise. 

My concerns are that we are throwing away expertise that took 

literally decades to develop, and that we might lose ground not 

only on terrorist financing investigations, but also money laundering investigations in narcotics trafficking and financial fraud. 

It is also unclear who at the Department has money-laundering 

issues as part of his or her portfolio. Mr. Garcia, I know you have 

experience in money-laundering prosecutions and care deeply about 

this issue, but I do not know if you will have the responsibility for 

this issue. 

Another example of confusion involves Canadian waste issues. 

Every day about 180 trucks come across the bridge from Canada 

into Michigan with Canadian waste—180 trucks a day, filling our 

landfills with Canadian trash. After September 11, we pointed out 

the security risk of allowing large trash trucks to do this with minimal inspections. I think all of us can picture a scenario in which 

trash trucks are used by terrorists to hide weapons, laundered 

funds, or hazardous materials like radioactive waste. 

Now in January 2003, Customs issued a new directive changing 

its practice and requiring additional inspection for trash trucks. 

But then a month later it reversed course and restored the practice 

of classifying trash trucks as low risk imports, requiring minimal 

inspection. 

I, along with Senator Stabenow and Congressman Dingell, sent 

a letter to Customs asking what happened, but we have 4 months 

later not yet received even a response, which I assume is more evidence of confusion. 

One last example of confusion was reported to me by my Detroit 

office. It used to be that when we had immigration problems, my 

office would call the Detroit INS officials to get an answer. Now 

they are told they have to call Washington. We do not know why. 

Confusion obviously cannot be totally avoided when establishing 

a huge new agency like the Department, but it also needs to be 

tackled. I know that you two will be playing an instrumental role 

in trying to eliminate that confusion. 

I think I have run out of time. Shall I ask a few questions? 

Chairman COLLINS. If you would like to proceed with your questions, feel free. 

Senator LEVIN. As I have said, Congress authorized the creation 

of integrated border inspection areas between the United States 

and Canada. These areas could include conducting shared border 

inspection or reverse customs inspection at U.S.-Canadian border 

crossings. So our Customs officers in Canada could protect our 

bridges and tunnels and also would enhance and facilitate trade. 

In your answers to questions submitted to you before this hearing, Mr. Verdery, you stated that reverse inspections are a good 

thing, and that is good to hear but some of us have been hearing 

that for the last 2 years. 

17

Now we are just wondering what is it going to take to get this 

thing accomplished? Is it ready to be acted upon? 

Mr. VERDERY. It is my understanding, as you said, Senator 

Levin, that the administration does support the concept of reverse 

inspection, that there have been ongoing discussions with the Canadian Government through our Customs Service and now BCP. 

The hang up, as I understand it, is that there are some very 

tricky legal questions, largely on the Canadian side, with interpretations of Canadian constitutional measures. 

In my view, this is the type of issue that is a perfect issue for 

a new policy office within BTS to become involved in, and I look 

forward to working on it. In fact, I would love to come up and visit 

Ambassador Bridge and see exactly how that would play out, with 

a reverse inspection zone, in your State. 

Senator LEVIN. We would love to have you there, but the Canadians have been looking at this for a long time. We need an answer. So we would love to have you there, we look forward to having you there, but we also look forward to the Canadians being 

told—since there is a river there, I should say fish or cut bait. But 

we need an answer from the Canadians on this. 

Mr. VERDERY. I will try to bring answers along with my luggage. 

Senator LEVIN. That would be great. Do you know whether we 

have officially asked Canada to set up that pilot program? 

Mr. VERDERY. I do not know if it has been officially made. I 

would be happy to get back to you. 

Senator LEVIN. Would you let us know that? 

Our Chairman asked whether or not the recent IG report was 

read by you. And I think, Mr. Verdery, you commented on her 

question. I was talking to my staff and may not have heard. 

Chairman COLLINS. Mr. Garcia was the one who commented. 

Senator LEVIN. Thank you, Madam Chairman. 

I think that our Chairman asked questions about whether you 

are going to be taking steps to implement some of the suggestions 

in the report. My question is a little bit different because I was 

troubled by these findings, especially where the Inspector General 

pointed to systemic failures by the Department of Justice to adhere 

to the concepts of fairness and justice. 

Perhaps what was most disturbing was the clear violation of the 

civil rights of individuals that I raised with officials at the Department of Justice over a year ago. Examples of harsh treatment from 

several agencies including the Immigration and Naturalization 

Service, were common. A majority of detainees were not provided 

with the timely opportunity to contact a lawyer. Some detainees 

were held as long as a month before being presented with charging 

documents. Other detainees were unable to contact their families 

because of a ‘‘communications blackout.’’ Several detainees were 

physically and verbally abused with some being confined to their 

cells for 23 hours a day. 

Rather than my commenting on it beyond that, I would like to 

ask for your reaction to the report. Why don’t both of you give me 

your reaction? 

Mr. GARCIA. As the report makes clear, it was an unprecedented 

time in the Nation’s history. That being said, there are certainly 

findings in that report that are troubling. As you mentioned, parVerDate 0ct 09 2002 10:13 Oct 30, 2003 Jkt 088253 PO 00000 Frm 00021 Fmt 6633 Sfmt 6633 C:\DOCS\88253.TXT SAFFAIRS PsN: PHOGAN
18

ticularly so are any allegations of mistreatment of detainees within 

the U.S. system. Particularly they looked at two institutions, I believe, in that process, one which was a contracting facility for the 

INS at that time. 

I think those issues have to be addressed. My understanding is 

we have a regulation going through the process now that would 

make that more of a formal procedure. I would note that in the report, with respect to that Passaic facility, they did find that within 

that facility detainees were provided with access to counsel and 

were provided presentations by groups outlining their rights within 

the system. 

They did conclude that the INS needed to do a better job of regularly inspecting and visiting the facility. We are, as I said, working 

with a regulation to make that procedural requirement. 

I think it is a timely report. Clearly, it is the responsibility of the 

IG to look at these issues and to make the recommendations, the 

difficult issues, and ones we are committed to addressing with the 

IG and with our colleagues in DHS and Department of Justice. 

Senator LEVIN. Madam Chairman, I am wondering if it would be 

in order for me to request that after Mr. Garcia’s confirmation, a 

reasonable period of time, perhaps 60 or 90 days, that he give us 

a report on the steps taken in response to that report? 

Chairman COLLINS. I think that would be helpful and I would be 

happy to join in making that an official Committee request. 

Senator LEVIN. Any comment, Mr. Verdery, on that? 

Mr. VERDERY. Senator, as we know, the activities that took place, 

that are the subject of that report, came when INS was part of the 

Department of Justice and many of the issues raised in the report 

were based on decisions taken by the Attorney General or the Deputy Attorney General. Some of those were a matter of discretion. 

Now that INS has been split up and has been moved into DHS 

and into these various parts, a number of those points of discretion 

now will sit with the Secretary. And I am very much looking forward to continuing to read the report, I have seen the Justice Department’s response to it, and slogging through what were apparently some very difficult legal questions and discretionary decisions 

made by the head of the agency, who is now Secretary of Homeland 

Security. 

I met yesterday with our new Officer for Civil Rights and Civil 

Liberties to discuss this. And I know that the regulations that were 

discussed will be moving through BICE, then BTS and DHS. And 

so it would be a timely report for us to issue to you all within a 

few months. 

Senator LEVIN. Thank you. I have two final questions. My red 

light has been on a long time. 

Chairman COLLINS. It has. Go right ahead. 

Senator LEVIN. Thank you. Just two final questions. 

I want to describe a couple of hundred trash trucks coming into 

our State with Canadian trash which is a security issue. It is an 

environmental issue, as well, but a security issue, that is the relevance to your positions. 

We sent a letter to Mr. Bonner about this, the we again being 

Senator Stabenow, Congressman Dingell and I, in January. We 

have not received a response. 

19

First of all, did we send it to the right person? Customs is now 

split up. We have a Bureau of Immigration and Customs Enforcement and we have a Bureau of Customs and Border Protection. Mr. 

Bonner has got the Bureau of Customs and Border Protection. And 

Mr. Garcia, I think you are Acting Secretary already of the Bureau 

of Immigration Customs Enforcement. Did we send it to the right 

place, first of all? Should we have sent it to you? 

Mr. GARCIA. Yes, you did. 

Senator LEVIN. Is that because you would rather it go there, or 

it should go there. 

Mr. GARCIA. Actually Senator, it is obviously a very serious matter. Commissioner Bonner, formally Commissioner of the U.S. Customs Service, now head of BCBP, is responsible for the inspection 

issues at the border. We are committed to working with him on any 

issues that we can be helpful. Obviously, I am happy to go back 

to him and raise this particular issue with them. 

Senator LEVIN. If it is in the right place, we will continue to raise 

it with him ourselves. We appreciate the offer, but we cannot pile 

that on you, as well. 

Mr. Garcia, just on the money-laundering responsibilities, will 

the anti-money-laundering responsibilities be part of your portfolio? 

Mr. GARCIA. Absolutely, Senator. As you mentioned earlier, I believe, I had experience as a prosecutor doing money-laundering 

cases. I recognize what an incredibly important and powerful tool 

that is in the counter-narcotics, counter-terrorism broad spectrum 

of crimes. 

The money-laundering expertise in what was Customs investigations, I agree, unmatched in their ability to apply their tools and 

authorities they have, in this way, to the crimes within their jurisdiction. 

You mentioned an agreement we have with the FBI. It is a division of responsibilities agreement. It provides that going forward 

there is formal coordination. There is exchange of high level management positions. We cannot afford to be duplicating efforts. 

But we cannot afford to lose any of the expertise in our program. 

We are not sending our agents to the FBI that were doing Green 

Quest, or sending them to the task force. We will continue with a 

robust financial money-laundering program that looks at the 

vulnerabilities that BICE is uniquely qualified to address. You are 

familiar with them, bulk currency transfer, black market peso, 

looking at the hubs in Atlanta and other places where currency is 

being exported in violation of our law. 

This is uniquely Homeland Security jurisdiction. We are committed to it. I personally can give you my commitment that, if confirmed, this will be one of my top priorities to not only maintain 

that expertise but to go forward with it as part of a new agency 

in an even more effective manner. 

Senator LEVIN. Thank you. Thank you both. We look forward to 

your confirmation. I hear you are both well qualified for these positions, and we all need your help. Thank you. 

Chairman COLLINS. Thank you, Senator Levin. 

Mr. Verdery, it has been recently reported that TSA has hired 

some screeners with criminal backgrounds. This is extraordinarily 

troubling to those of us who thought that the Federal Government’s 

20

take over of the screening process would ensure high-quality 

screeners with clean backgrounds. 

According to the Washington Post, for example, at the Los Angeles International Airport, airport officials have learned that six 

TSA screeners admitted to serious felonies on written questionnaires, including felony gun possession and assault with a deadly 

weapon. 

What specific steps are you going to take to ensure that this 

problem does not reoccur, and that the employees not only receive 

adequate background checks but that someone pays attention to 

the results before they are hired? 

Mr. VERDERY. It is my understanding that, as TSA was being 

stood up and hiring an unprecedented number of screeners, close 

to 50,000 within about a 10-month span, they put in an innovative 

methods to do background checks. it is my understanding that over 

97 percent of the screeners that were eventually hired, had that 

fingerprint check. 

Now we know that a number of people, as the checks came back 

in, were found to have disqualifying criminal histories. Those were 

fired, several hundred, I believe, close to 1,000. But again, over 98 

percent have had background checks and are actively on the job 

with no criminal problem. 

Chairman COLLINS. Given the size of the workforce, if you have 

2 percent that are still slipping through the process with criminal 

backgrounds, that 98 percent figure is not of much comfort to me. 

Mr. VERDERY. I believe, as Admiral Loy testified in the house 

earlier this week, the 2 percent is not 2 percent with criminal background in their history. It is 2 percent who did not have the check. 

So they are actively rushing to finish those 2 percent that did not 

have a full check when they were originally hired. 

Now you asked, as a matter going forward, we should not have 

a similar problem because all new applicants are going through full 

checks before they are hired. So this is an issue of trying to clean 

up around the margin where people fell through the cracks when 

TSA was rushing to hire close to 50,000 people. 

So I think this is a problem that is going to be solved within the 

summer, and people can have complete confidence that the screeners that are on the job do not have any kind of disqualifying criminal background history. 

Chairman COLLINS. Another issue that has arisen with TSA is 

the Department’s plan to lay off some 6,000 airport screeners by 

September 30. I know, in the case of the plans for the airport in 

Portland, Maine, that the reductions proposed did not take into account that there was a third screening lane and that the airport 

was entering its peak travel season, as those of you who go to 

Maine in the summer are well aware. 

I am very pleased that in response to my request, TSA is reconsidering its plan for Portland’s airport, but I am concerned about 

how this happened in the first place. Could you share with us what 

approach you are going to take to make sure that TSA does have 

adequate staff to do the job and to take into account travel fluctuations, as well as the need to avoid inordinate delays for passengers? 

Mr. VERDERY. As you know, I was not part of the original decisionmaking. And as you mentioned, it is my understanding that 

21

TSA is revising the screener reduction by airport in response to reanalysis and other factors, and I believe that is going to be announced shortly. 

Again, TSA is trying to respond to changes in passenger traffic 

and also to a decision to go to a different type of philosophy where 

they are going to have more roving law enforcement officers 

throughout the airport and fewer standing at particular checklines. So that new philosophy is going to allow them to have some 

cutbacks without sacrificing the world-class security and worldclass services that they are trying to achieve. 

So I am anxious to get on the job, work with TSA on their 

screening plan. As you know, they do face a budget shortfall and 

so they are trying to be as prudent with the taxpayer’s money as 

they can with the screener program without sacrificing any kind of 

safety in Maine’s airports or anywhere else. 

Chairman COLLINS. Finally, I want to ask you a question about 

the CAPPS Program, which is the Computer Assisted Passenger 

Pre-screening System. As I understand the CAPPS–II program, it 

will use commercial and classified databases to select which passengers should be subjected to heightened scrutiny before they 

board aircraft. Is that essentially correct? 

Mr. VERDERY. Yes. CAPPS–II is trying to accomplish two different things at the same time before a passenger would board a 

plane. One is using commercial sources to do an identity verification. Is the person trying to buy the ticket the person they say 

they are? And they are using all kinds of commercial databases to 

do that identity verification. Second, CAPPS–II will also generate 

a risk assessment score that a TSA employee could review until the 

information is deleted which will be after the person flies. There 

is no bleed over into other types of checks. No one has any clue 

what the information is other than the risk assessment score. 

Second, CAPPS–II is trying to perform a risk analysis of the individual using intelligence information to compare versus a person 

who is attempting to fly. As you know, a lot of that information is 

classified. We would be happy to sit down with you in a more appropriate setting and go through some of those measures. But that 

is the basics of what CAPPS–II is trying to achieve. 

Chairman COLLINS. If properly implemented, I could see where 

CAPPS–II could be very helpful in focusing attention on passengers 

that should be subjected to increased screening and scrutiny, and 

that should make travel easier for the low-risk passenger ideally. 

However, if the databases on which the new system will rely contain faulty or incomplete or inaccurate information, the possibility 

is high that passengers could be selected for increased scrutiny who 

do not deserve that kind of risk analysis. I think any of us who 

have ever had problems with inaccurate information being reported 

on a credit report, for example, or with identity theft are very 

much aware of the potential pitfalls of this approach. 

How are you going to ensure that the information on which 

CAPPS is relying is adequate and accurate, as well? 

Mr. VERDERY. The CAPPS–II system will be relying on a number 

of commercial databases not a single source. Furthermore, if a person has inaccurate information in his credit reports, as happens 

frequently, the fact that that is in somebody’s report will not affect 

22

his ability to fly. Obviously it is a separate issue for him, but it is 

not going to affect his ability to fly, the fact that there is inaccurate 

information in their report. 

Obviously, TSA needs to work and make sure that they pick the 

best commercial databases available, and I am happy to sit down 

and work with TSA to make sure that CAPPS–II is designed properly, if I am confirmed. 

As you mentioned, the goal is to make it much easier for the 

large majority of passengers to board with no delay. As you know, 

currently people are selected for enhanced screening based on a 

number of factors. This should make it much more narrowly tailored who is selected for the additional screening, based on that 

identity verification or risk analysis score. 

Chairman COLLINS. The final caution that I would give to you on 

the program is that many of us are concerned about the Federal 

Government aggregating large databases with personal information 

on law-abiding Americans. That is just contrary to the heritage of 

our country, with its respect for individual privacy. I think this is 

an area where we have to proceed with a great deal of caution in 

order to respect the privacy rights of law-abiding Americans. 

Mr. VERDERY. We agree with that completely. The Chief Privacy 

Officer of the new Department has been involved on a day-to-day 

basis with how the CAPPS–II system is being developed. Remember, this is still a year away from full deployment. The Secretary 

has said it will not be deployed until she approves it. And I think 

she feels comfortable where this is going, remembering that the 

commercial information that is being accessed is a one-time hit. 

You have a score, it is checked. You are either sent onto the plane 

or given secondary screening, and then that score vanishes. The 

next time you fly, on a separate trip, that prior score has no interaction. It is just a one-time check. There is no retention of the data 

once your flight plan is completed. 

Chairman COLLINS. Thank you, Mr. Verdery. 

Mr. Verdery, Mr. Garcia, I want to thank you both for your testimony today. 

I also want to thank you for your willingness to serve your country. It is a sacrifice for many families to enter the public arena, and 

we need people with your ability, your integrity, and your commitment to be willing to serve in Federal Government. So I want to 

express the gratitude that I feel toward both of you for your willingness to serve. 

It is my hope that we can move very expeditiously on both of 

your nominations to get you confirmed quickly by the full Senate, 

and on the job as soon as possible. 

Without objection, the hearing record will be kept open until 5 

p.m. today for the submission of any written questions or statements for the record. This hearing is now adjourned. 

[Whereupon, at 11:51 a.m., the Committee was adjourned.] 

(23)

A P P E N D I X 

PREPARED STATEMENT OF SENATOR WARNER 

Chairman Collins, and my other distinguished colleagues on the Senate Governmental Affairs Committee, it is my honor to come before the Committee today and 

introduce Stewart Verdery to serve as the first Assistant Secretary for Policy and 

Planning at the Border and Security Directorate at the Department of Homeland 

Security. 

I am pleased to welcome his family and friends in attendance today, including his 

wife Jenny, his children Isabelle and Chase, and his parents, Charles and Linda 

Verdery. 

Mr. Verdery has a vast and distinguished career in public and the private sector. 

I know that with his strong leadership skills, meritorious academic and professional 

credentials, Mr. Verdery will be an asset to the Department and its mission to protect the nation against further terrorist attacks. 

The Border and Transportation Security Directorate, where Mr. Verdery currently 

serves as a Senior Advisor to Under Secretary Asa Hutchison, is the largest of the 

Departments five major divisions. Many new and unforeseen challenges lie ahead 

for this Directorate. 

I am a personal witness to the abilities of Mr. Verdery. During his service as 

Counsel on the Senate Rules Committee when I served as Chairman, he adeptly directed a challenging investigation of the contested 1996 Louisiana Senate election. 

As Counsel on the Committee, he was also responsible for drafting some of the 

initial versions of campaign finance reform legislation. Many of the concepts from 

his work are reflected in the campaign finance legislation enacted in 2002. 

With his experience on the Senate Judiciary Committee, serving as lead Counsel 

for the Crime and Drug Policy Unit, Mr. Verdery is aware of the intricate complexities of dealing with security of our nation’s borders and transportation infrastructure. 

I look forward to working with Mr. Verdery as he takes on this new task in public 

service. I commend his qualifications to you and urge the Committee’s favorable consideration of his nomination.

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