Topic: L3 Communications

Retired Army General Richard Cody of L3 Communications reportedly told shareholders that the perceived threat from Russia represents a "historic opportunity" for the defense industry. After defense budgets declined following the Cold War, the current geopolitical tension is driving a bonanza in weapons sales. While European citizens pay the price through subsidies and sanctions, the military-industrial complex is seeing record profits.

The TSA is removing RapiScan backscatter X-ray machines from airports after the company failed to develop privacy software that masks naked images. The contract has been shifted to L3 Communications. The hosts argue that the government lied about the ability to fix these machines and mention legal concerns regarding the scanning of minors, which they equate to the collection of prohibited imagery.

A host recounts a meeting with a high-powered lawyer who represented Rapiscan in a $129 million lawsuit against L3 Communications over backscatter technology patents. The conversation touches on the involvement of Michael Chertoff and the CEO of Rapiscan, Deepak Chopra (not the spiritual leader), who traveled with President Obama to India.

A deep dive into TSA safety claims reveals that the agency relies on commercial trade organization standards rather than mandatory government testing for its scanners. While Administrator John Pistole cites Johns Hopkins and ANSI studies, the hosts argue that the specific machines used by L3 and Rapiscan have not been independently verified to adhere to these non-mandatory safety protocols. They express skepticism regarding the long-term health effects of frequent radiation exposure for travelers.

Former Homeland Security Secretary Michael Chertoff is accused of profiting from the sale of body scanners through the Chertoff Group. The segment details the "revolving door" of government officials, including former UK Home Secretary John Reed and former Senator Al D'Amato, joining lobbying firms for security contractors like L3 Communications and Rapiscan. The hosts characterize the rapid deployment of expensive, potentially unsafe equipment as systemic corruption.