Paragon Solutions is a leading nexus of the surveillance technology industry. It has found itself caught up in a storm of controversy after cutting ties with Italy’s intelligence agencies. Such claims against the company are not new. Its spyware is currently embroiled in scandal for targeting journalists and immigration activists in Italy. The scrutiny on Paragon is heightened by its recent contracts with the U.S. Immigration and Customs Enforcement (ICE), raising ethical questions about its role in surveillance practices.
In September 2024, ICE awarded a $2 million contract to Paragon Solutions. This partnership continues a strong track of collaboration that began in the early 2010s. In a surprise move, the Biden administration released a “stop work order” on the partnership, suspending work under the contract. Consequently, it has been rotting in the legislative graveyard for almost a year. The Trump administration rescinded that order, enabling construction of the contract to move forward. In fact, this year, ICE has already showered $4.7 million with Paragon. A large chunk of this spending goes toward an $18.5 million contract for the “Investigative Case Management” (ICM) database system.
Allegations of Misconduct in Italy
The dispute over Paragon quickly became more contentious. In late 2021, reports surfaced, accusing the Italian government of abusing its spyware to track journalists and immigration activists. One journalist who was targeted through WhatsApp told me they felt completely assaulted and defenseless. They focused on the ways in which surveillance technology affected their day to day life.
Now Italian lawmakers have corroborated that Paragon’s spyware was used to track the phones of activist immigration officials. They claimed no journalists were deliberately targeted. These allegations have led to serious ethical queries about the apparent use of surveillance technology and whether or not it violates our civil liberties.
The Italian scandal has prompted criticism from various quarters, including human rights advocates who argue that such surveillance undermines democratic values and freedom of expression. Critics have raised the hypocrisy of Paragon’s self-portrayal as an “ethical” maker of spyware in light of these gravely serious accusations.
ICE Contracts Under Review
Paragon’s connection to ICE gets a lot more complicated. This pressure intensified after the Biden administration announced it was reviewing its contracts in light of Italian allegations. The company has sought to position itself as a responsible provider of surveillance technology, emphasizing its commitment to ethical use.
Richman, a spokesperson for LexisNexis, which partners with various agencies for public safety initiatives, stated, “Our commitment is to support the responsible and ethical use of data, in full compliance with laws and regulations, and for the protection of all residents of the United States.” As demands for transparency mount, hard questions have begun to arise about the ethics of Paragon’s close ties to the agency. This concern is further exacerbated by ICE’s checkered track record.
Concern over these contracts grew after ICE acquired forensic software from Paragon. This acquisition, worth $1.1 million at the time, occurred in September of 2024. While that deal was controversial, the report placed additional scrutiny on ICE’s continued dependence on Paragon’s technology, even despite the unresolved ethical concerns stemming from their operations in Italy.
Future Prospects for Paragon Solutions
Just a month later in December 2024, AE Industrial, one of the top American private equity firms, purchased Paragon Solutions. They intend to roll it up with their other cybersecurity acquisition, Red Lattice. This acquisition represents a huge inflection point for Paragon. The maritime company has long been seeking to turn the page on its current controversy and get a fresh start atop, perhaps, an entirely different market.
As the political climate shifts and new administrations take charge, companies like Paragon may face increasing pressure to align their operations with ethical standards. By choosing to align with ICE, the Trump administration has made their job much harder. Now, industry observers are wondering what it will all mean going forward for each group.
The ethical issues raised by Paragon’s contracts are inexcusable. As noted in discussions among industry commentators, “now has to decide if it’s ethical to work with Trump’s ICE,” indicating that the firm must consider its corporate social responsibility amidst political challenges.
