Russian FSB Officers Charged in Yahoo Hack and More

Posted on March 15, 2017March 15, 2017 by Denise Simon

NBC, Washington

Yahoo announced on Thursday that the account information of at least 500 million users was stolen by hackers two years ago, in the biggest known intrusion of one company’s computer network.

In a statement, Yahoo said user information — including names, email addresses, telephone numbers, birth dates, encrypted passwords and, in some cases, security questions — was compromised in 2014 by what it believed was a “state-sponsored actor.” More here from NYT’s.

U.S. Charges Russian FSB Officers and Their Criminal Conspirators for Hacking Yahoo and Millions of Email Accounts

FSB Officers Protected, Directed, Facilitated and Paid Criminal Hackers

Karim Taloverov, arrested in Canada

A grand jury in the Northern District of California has indicted four defendants, including two officers of the Russian Federal Security Service (FSB), for computer hacking, economic espionage and other criminal offenses in connection with a conspiracy, beginning in January 2014, to access Yahoo’s network and the contents of webmail accounts. The defendants are Dmitry Aleksandrovich Dokuchaev, 33, a Russian national and resident; Igor Anatolyevich Sushchin, 43, a Russian national and resident; Alexsey Alexseyevich Belan, aka “Magg,” 29, a Russian national and resident; and Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22, a Canadian and Kazakh national and a resident of Canada.

The defendants used unauthorized access to Yahoo’s systems to steal information from about at least 500 million Yahoo accounts and then used some of that stolen information to obtain unauthorized access to the contents of accounts at Yahoo, Google and other webmail providers, including accounts of Russian journalists, U.S. and Russian government officials and private-sector employees of financial, transportation and other companies. One of the defendants also exploited his access to Yahoo’s network for his personal financial gain, by searching Yahoo user communications for credit card and gift card account numbers, redirecting a subset of Yahoo search engine web traffic so he could make commissions and enabling the theft of the contacts of at least 30 million Yahoo accounts to facilitate a spam campaign.

The charges were announced by Attorney General Jeff Sessions of the U.S. Department of Justice, Director James Comey of the FBI, Acting Assistant Attorney General Mary McCord of the National Security Division, U.S. Attorney Brian Stretch for the Northern District of California and Executive Assistant Director Paul Abbate of the FBI’s Criminal, Cyber, Response and Services Branch.

“Cyber crime poses a significant threat to our nation’s security and prosperity, and this is one of the largest data breaches in history,” said Attorney General Sessions. “But thanks to the tireless efforts of U.S. prosecutors and investigators, as well as our Canadian partners, today we have identified four individuals, including two Russian FSB officers, responsible for unauthorized access to millions of users’ accounts. The United States will vigorously investigate and prosecute the people behind such attacks to the fullest extent of the law.”

“Today we continue to pierce the veil of anonymity surrounding cyber crimes,” said Director Comey. “We are shrinking the world to ensure that cyber criminals think twice before targeting U.S. persons and interests.”

“ The criminal conduct at issue, carried out and otherwise facilitated by officers from an FSB unit that serves as the FBI’s point of contact in Moscow on cybercrime matters, is beyond the pale,” said Acting Assistant Attorney General McCord. “Once again, the Department and the FBI have demonstrated that hackers around the world can and will be exposed and held accountable. State actors may be using common criminals to access the data they want, but the indictment shows that our companies do not have to stand alone against this threat. We commend Yahoo and Google for their sustained and invaluable cooperation in the investigation aimed at obtaining justice for, and protecting the privacy of their users.”

“This is a highly complicated investigation of a very complex threat. It underscores the value of early, proactive engagement and cooperation between the private sector and the government,” said Executive Assistant Director Abbate. “The FBI will continue to work relentlessly with our private sector and international partners to identify those who conduct cyber-attacks against our citizens and our nation, expose them and hold them accountable under the law, no matter where they attempt to hide.”

“Silicon Valley’s computer infrastructure provides the means by which people around the world communicate with each other in their business and personal lives. The privacy and security of those communications must be governed by the rule of law, not by the whim of criminal hackers and those who employ them. People rightly expect that their communications through Silicon Valley internet providers will remain private, unless lawful authority provides otherwise. We will not tolerate unauthorized and illegal intrusions into the Silicon Valley computer infrastructure upon which both private citizens and the global economy rely,” said U.S. Attorney Stretch. “Working closely with Yahoo and Google, Department of Justice lawyers and the FBI were able to identify and expose the hackers responsible for the conduct described today, without unduly intruding into the privacy of the accounts that were stolen. We commend Yahoo and Google for providing exemplary cooperation while zealously protecting their users’ privacy.”

Summary of Allegations

According to the allegations of the Indictment:

The FSB officer defendants, Dmitry Dokuchaev and Igor Sushchin, protected, directed, facilitated and paid criminal hackers to collect information through computer intrusions in the U.S. and elsewhere. In the present case, they worked with co-defendants Alexsey Belan and Karim Baratov to obtain access to the email accounts of thousands of individuals.

Belan had been publicly indicted in September 2012 and June 2013 and was named one of FBI’s Cyber Most Wanted criminals in November 2013. An Interpol Red Notice seeking his immediate detention has been lodged (including with Russia) since July 26, 2013. Belan was arrested in a European country on a request from the U.S. in June 2013, but he was able to escape to Russia before he could be extradited.

Instead of acting on the U.S. government’s Red Notice and detaining Belan after his return, Dokuchaev and Sushchin subsequently used him to gain unauthorized access to Yahoo’s network. In or around November and December 2014, Belan stole a copy of at least a portion of Yahoo’s User Database (UDB), a Yahoo trade secret that contained, among other data, subscriber information including users’ names, recovery email accounts, phone numbers and certain information required to manually create, or “mint,” account authentication web browser “cookies” for more than 500 million Yahoo accounts.

Belan also obtained unauthorized access on behalf of the FSB conspirators to Yahoo’s Account Management Tool (AMT), which was a proprietary means by which Yahoo made and logged changes to user accounts. Belan, Dokuchaev and Sushchin then used the stolen UDB copy and AMT access to locate Yahoo email accounts of interest and to mint cookies for those accounts, enabling the co-conspirators to access at least 6,500 such accounts without authorization.

Some victim accounts were of predictable interest to the FSB, a foreign intelligence and law enforcement service, such as personal accounts belonging to Russian journalists; Russian and U.S. government officials; employees of a prominent Russian cybersecurity company; and numerous employees of other providers whose networks the conspirators sought to exploit. However, other personal accounts belonged to employees of commercial entities, such as a Russian investment banking firm, a French transportation company, U.S. financial services and private equity firms, a Swiss bitcoin wallet and banking firm and a U.S. airline.

During the conspiracy, the FSB officers facilitated Belan’s other criminal activities, by providing him with sensitive FSB law enforcement and intelligence information that would have helped him avoid detection by U.S. and other law enforcement agencies outside Russia, including information regarding FSB investigations of computer hacking and FSB techniques for identifying criminal hackers. Additionally, while working with his FSB conspirators to compromise Yahoo’s network and its users, Belan used his access to steal financial information such as gift card and credit card numbers from webmail accounts; to gain access to more than 30 million accounts whose contacts were then stolen to facilitate a spam campaign; and to earn commissions from fraudulently redirecting a subset of Yahoo’s search engine traffic.

When Dokuchaev and Sushchin learned that a target of interest had accounts at webmail providers other than Yahoo, including through information obtained as part of the Yahoo intrusion, they tasked their co-conspirator, Baratov, a resident of Canada, with obtaining unauthorized access to more than 80 accounts in exchange for commissions. On March 7, the Department of Justice submitted a provisional arrest warrant to Canadian law enforcement authorities, requesting Baratov’s arrest. On March 14, Baratov was arrested in Canada and the matter is now pending with the Canadian authorities.

An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.

The FBI, led by the San Francisco Field Office, conducted the investigation that resulted in the charges announced today. The case is being prosecuted by the U.S. Department of Justice National Security Division’s Counterintelligence and Export Control Section and the U.S. Attorney’s Office for the Northern District of California, with support from the Justice Department’s Office of International Affairs.

Defendants: At all times relevant to the charges, the Indictment alleges as follows:

- Dmitry Aleksandrovich Dokuchaev, 33, was an officer in the FSB Center for Information Security, aka “Center 18.” Dokuchaev was a Russian national and resident.

- Igor Anatolyevich Sushchin, 43, was an FSB officer, a superior to Dokuchaev within the FSB, and a Russian national and resident. Sushchin was embedded as a purported employee and Head of Information Security at a Russian investment bank.

- Alexsey Alexseyevich Belan, aka “Magg,” 29, was born in Latvia and is a Russian national and resident. U.S. Federal grand juries have indicted Belan twice before, in 2012 and 2013, for computer fraud and abuse, access device fraud and aggravated identity theft involving three U.S.-based e-commerce companies and the FBI placed Belan on its “Cyber Most Wanted” list. Belan is currently the subject of a pending “Red Notice” requesting that Interpol member nations (including Russia) arrest him pending extradition. Belan was also one of two criminal hackers named by President Barack Obama on Dec. 29, 2016, pursuant to Executive Order 13694, as a Specially Designated National subject to sanctions.

- Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22. He is a Canadian and Kazakh national and a resident of Canada.

Victims: Yahoo; more than 500 million Yahoo accounts for which account information about was stolen by the defendants; more than 30 million Yahoo accounts for which account contents were accessed without authorization to facilitate a spam campaign; and at least 18 additional users at other webmail providers whose accounts were accessed without authorization.

Time Period: As alleged in the Indictment, the conspiracy began at least as early as 2014 and, even though the conspirators lost their access to Yahoo’s networks in September 2016, they continued to utilize information stolen from the intrusion up to and including at least December 2016.

Crimes:

Count(s)	Defendant(s)	Charge	Statute 18 U.S.C.	Conduct	Maximum Penalty
1	All	Conspiring to commit computer fraud and abuse	§ 1030(b)	Defendants conspired to hack into the computers of Yahoo and accounts maintained by Yahoo, Google and other providers to steal information from them. First, Belan gained access to Yahoo’s servers and stole information that allowed him, Dokuchaev, and Sushchin to gain unauthorized access to individual Yahoo user accounts. Then, Dokuchaev and Sushchin tasked Baratov with gaining access to individual user accounts at Google and other Providers (but not Yahoo) and paid Baratov for providing them with the account passwords. In some instances, Dokuchaev and Sushchin tasked Baratov with targeting accounts that they learned of through access to Yahoo’s UDB and AMT (e.g., Gmail accounts that served as a Yahoo user’s secondary account).	10 years
2	Dokuchaev Sushchin Belan	Conspiring to engage in economic espionage	§ 1831(a)(5)	Starting on Nov. 4, 2014, Belan stole, and the defendants thereafter transferred, received and possessed the following Yahoo trade secrets: the Yahoo UDB, which was proprietary and confidential Yahoo technology and information, including subscriber names, secondary accounts, phone numbers, challenge questions and answers; the AMT, Yahoo’s interface to the UDB; and Yahoo’s cookie “minting” source code, which enabled the defendants to manufacture account cookies to then gain access to individual Yahoo user accounts.	15 years
3	Dokuchaev Sushchin Belan	Conspiring to engage in theft of trade secrets	§ 1832(a)(5)	See Count 2	10 years
4-6	Dokuchaev Sushchin Belan	Economic espionage	§§ 1831(a)(1), (a)(4), and 2	See Count 2	15 years (each count)
7-9	Dokuchaev Sushchin Belan	Theft of trade secrets	§§ 1832(a)(1), and 2	See Count 2	10 years (each count)
10	Dokuchaev Sushchin Belan	Conspiring to commit wire fraud	§ 1349	The defendants fraudulently schemed to gain unauthorized access to Yahoo’s network through compromised Yahoo employee accounts and then used the Yahoo trade secrets to gain unauthorized access to valuable non-public information in individual Yahoo user accounts.	20 years
11-13	Dokuchaev Sushchin Belan	Accessing (or attempting to access) a computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.	§§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2	The defendants gained unauthorized access to Yahoo’s corporate network and obtained information regarding Yahoo’s network architecture and the UDB.	5 years (each count)
14-17	Dokuchaev Sushchin Belan	Transmitting code with the intent to cause damage to computers.	§§ 1030(a)(5)(A), 1030(c)(4)(B), and 2	During the course of their unauthorized access to Yahoo’s network, the defendants transmitted code on Yahoo’s network in order to maintain a persistent presence, to redirect Yahoo search engine users and to mint cookies for individual Yahoo accounts.	10 years (each count)
18-24	Dokuchaev Sushchin Belan	Accessing (or attempting to access) a computer without authorization to obtain information for the purpose of commercial advantage and private financial gain.	§§ 1030(a)(2)(C), 1030(c)(2)(B)(i)-(iii), and 2	Defendants obtained unauthorized access to individual Yahoo user accounts.	5 years (each count)
25-36	Dokuchaev Sushchin Belan	Counterfeit access device fraud	§§ 1029(a)(1), 1029(b)(1), and 2	Defendants used minted cookies to gain unauthorized access to individual Yahoo user accounts.	10 years (each count)
37	Dokuchaev Sushchin Belan	Counterfeit access device making equipment	§§ 1029(a)(4)	Defendants used software to mint cookies for unauthorized access to individual Yahoo user accounts.	15 years
38	Dokuchaev Sushchin Baratov	Conspiring to commit access device fraud	§§ 1029(b)(2)	Defendants Dokuchaev and Sushchin tasked Baratov with gaining unauthorized access to individual user accounts at Google and other Providers and then paid Baratov for providing them with the account passwords. In some instances, Dokuchaev and Sushchin tasked Baratov with targeting accounts that they learned of through access to Yahoo’s UDB and AMT (e.g., Gmail accounts that served as a Yahoo user’s secondary account).	7 ½ years.
39	Dokuchaev Sushchin Baratov	Conspiring to commit wire fraud	§ 1349	See Count 38	20 years
40-47	Dokuchaev Baratov	Aggravated identity theft	§ 1028A(a)(1)	See Count 38	2 years

Dmitri Dokuchae et al Indictment Redacted

17-278

National Security Division (NSD)

USAO – California, Northern

Topic:

Counterintelligence and Export Control

Updated March 15, 2017

DNC: Tom Perez/Keith Ellison, DemRulz

Posted on March 15, 2017March 15, 2017 by Denise Simon

Politico: New Democratic National Committee Chair Tom Perez and Deputy Chair Keith Ellison are taking their buddy show on the road.

Starting later this month, the pair will embark on what they are calling a “Democratic Turnaround Tour” that hits a collection of states that the party lost in 2016 and where there are ongoing races. The first stops, beginning March 24, are in Detroit and Flint, Michigan — where Hillary Clinton was the first Democrat to lose since 1988.

That trip will be followed by visits to Texas — where Democrats are looking to make inroads — and to the states that will hold the two gubernatorial races in 2017, New Jersey and Virginia.

Perez and Ellison are set to announce the tour on Wednesday night, less than two weeks after the former Labor secretary won the chairmanship and named the Minnesota congressman his deputy in Atlanta.

After a four-month long campaign that devolved into a messy proxy war between the establishment wing of the party and the Bernie Sanders wing of the party, the two have gone out of their way to appear together.
It started with a joint press conference following Perez’s victory — in which they were wearing each other’s campaign pins — and continued at President Donald Trump’s first address to Congress, at which Perez was Ellison’s guest.

Now, their push to unify the party is heading to some of the states most vital to the Democrats’ comeback strategy.

When they are traveling, the duo will meet with local party members to talk about the importance of local organization — a key point in both of their campaigns for the chairmanship. But they will also push for Democrats to convey a positive economic message to respond to Trump, not simply an anti-Trump one like the party’s prevailing push during the 2016 campaign.

*** Per Wikipedia:

Perez announced his candidacy for Chair of the Democratic National Committee on December 15, 2016.^[158] He argued that the party needs to go to the suburbs, the exburbs and rural America, and talk to people.^[159] Perez promised not to take money from federal lobbyists, foreign nationals, or current Labor Department employees.^[160] His candidacy was endorsed by former Vice President Joe Biden and other Obama administration officials.^[161]

On February 25, 2017 Perez was elected DNC chair.^[162]^[163] Perez won on the second ballot with 235 votes, beating nearest rival Representative Keith Ellison who earned 200 votes.^[162] After winning the election, Perez named Ellison as Deputy Chairman of the DNC.^[161] Perez is the first Latino and the first Dominican-American to chair the Democratic National Committee.^[164]

*** DeRay gets another paying gig, he is among friends.

Image result for deray mckesson blm dnc BET

North Korea = Iran, China, Syria, Russia, Egypt

Posted on March 15, 2017March 15, 2017 by Denise Simon

There are many worries about building military actions by North Korea such that deployments of U.S. military assets along with that of Japan, S. Korea and other nations in the region are preparing for various conditions due to continued threats by the DPRK.

CNN

There is a standing sanction program against North Korea, but they are not holding due to Africa.

JOHANNESBURG (AP) — North Korean weapons barred by U.N. sanctions ended up in the hands of U.N. peacekeepers in Africa, a confidential report says. That incident and others in more than a half-dozen African nations show how North Korea, despite facing its toughest sanctions in decades, continues to avoid them on the world’s most impoverished continent with few repercussions.

The annual report by a U.N. panel of experts on North Korea, obtained by The Associated Press, illustrates how Pyongyang evades sanctions imposed for its nuclear and ballistic missile programs to cooperate “on a large scale,” including military training and construction, in countries from Angola to Uganda.

Among the findings was the “largest seizure of ammunition in the history of sanctions” against North Korea, with 30,000 rocket-propelled grenades found hidden under iron ore that was destined for Egypt in a cargo vessel heading toward the Suez Canal. The intended destination of the North Korean-made grenades, seized in August, was not clear.

A month before that, the report says, a U.N. member state seized an air shipment destined for a company in Eritrea containing military radio communications items. It was the second time military-related items had been caught being exported from North Korea to Eritrea “and confirms ongoing arms-related cooperation between the two countries.” Eritrea is also under U.N. sanctions for supporting armed groups in the Horn of Africa.

***

Experts point to China as the father and manager of North Korea and there is real truth to that, yet the collaborations go far beyond China, to include Iran, Syria and Russia and in some cases Egypt. Nearly all of the North Korea country’s communications and Internet traffic is routed through China. Firms that monitor that traffic say it is comparable to only about 1,000 high-speed homes in the United States.

North Korea has intermediate-range ballistic missiles as well. North Korea has tested nuclear weapons on three occasions; Iran and Syria’s nuclear programs have raised suspicions that those countries are pursuing nuclear weapons. However, Iran has, according to the IC, halted its nuclear weapons program, and Syria does not appear to have an active nuclear weapons program.

Congress has held numerous hearings regarding these countries’ nuclear and missile programs. It has also passed legislation providing for sanctions on countries whose entities assist Iran, North Korea, and Syria to obtain weapons of mass destruction (WMD) and missile delivery systems. For example, the Iran, North Korea and Syria Nonproliferation Act (INKSNA, P.L. 106-178) imposes penalties on countries whose companies’ exports. See report here.

***

Secretary of State Rex Tillerson will warn China’s leaders that the United States is prepared to step up missile defenses and pressure on Chinese financial institutions if they fail to use their influence to restrain North Korea’s nuclear and missile programs, according to several officials involved in planning his first mission to Asia.

Reinforcing military ties, Gen. Joseph F. Dunford Jr., the chairman of the Joint Chiefs of Staff, conducted a 30-minute phone call on Tuesday with his South Korean counterpart, Gen. Lee Sun-jin. A Pentagon statement said the generals discussed the possibility that North Korea could carry out “provocative actions” during the joint American and South Korean exercises now underway, or in April when North Korean authorities commemorate the birthday of Kim Il-sung, the founder and first leader of the country.

Daniel L. Glaser, a former Treasury official who constructed many of the sanctions, and now a principal at the Financial Integrity Network, said in an interview that the largest Chinese banks often shun dealings with North Korea and that some of the smaller ones have little exposure to the American banking system. More here from the NYT’s.

Trump administration officials have signaled there will be even greater financial pressure placed on Beijing if it doesn’t cut off North Korea, a step that risks Chinese retaliation. “We are putting the world on notice: The games are over,” Commerce Secretary Wilbur Ross said while announcing the sanctions on ZTE last week. [….]

U.S. officials said Mr. Tillerson would be discussing North Korea at all his stops in Asia, including the issue of “secondary” sanctions against non-North Korean companies that have been aiding Pyongyang. “All of the existing tools that we have to try to bring pressure on North Korea are on the table, and we’ll be looking to try to see what the most effective combination is,” said a senior U.S. official briefed on the Asia trip.

Republican senators wrote Treasury Secretary Steven Mnuchin last month and called for an investigation into the Bank of China and other Chinese firms for their alleged roles in helping North Korea. [Wall Street Journal, Jay Solomon; link to senator’s letter here]

***

Nuclear Proliferation

Kumsan Trading. Member states are supposed to freeze the assets of, and expel the representatives of, companies involved in North Korean nuclear, missile, and other WMD proliferation. According to the Panel, the Korea Kumsan Trading Corporation is a front for North Korea’s General Bureau of Atomic Energy and helps it procure materials and fund its operations. Kumsan advertises itself online openly as dealing in sanctioned products, including vanadium and precious metals, with locations in both Moscow and Dandong. (Paras. 18-20.)

Korea Mining Development Trading Corp. (KOMID) is North Korea’s main arms dealer. It was designated in 2009 for WMD proliferation, but probably earns most of its revenue through violations of an embargo on conventional arms sales, by selling to governments in Africa and the Middle East. KOMID operates through multiple front companies that do business more-or-less openly in China. China is required to expel the representatives of these companies, but it almost never does. When one of them is exposed, it may revoke a business license or registration, but the operative goes right back into business under a new name at a new address. The Panel also found that at least nine KOMD representatives traveled through China in 2016, despite a requirement that member states deny them entry. (Table 8, Page 68.)

One of KOMID’s fronts is Namchongang Trading, which was designated by the U.N. in 2009 for procuring nuclear-related items. It operates openly in Beijing and Dandong, China, through several Chinese commercial websites. (Para. 156.) Namchongang has also operated as (or in cahoots with) Taeryonggang Trading, Namhung Trading, and Sobaeksu United Corporation, which operates in Beijing, Yingkou and Dandong. The EU designated Sobaeksu in 2010 for “the research and acquisition of sensitive products and equipment.” The Panel suspects that this entire network is involved with KOMID. (Paras. 156-59.) KOMID also does business through a front company called Beijing New Technology. (Para. 163.)

Another KOMID front, Korea Heungjin Trading, which was designated in 2012, for nuclear, missile, and other WMD proliferation, also operates openly in Dandong and Dalian. A North Korean diplomat posted at the embassy in Beijing serves as its director. (Para. 187-89.)

Green Pine Associated was designated by the U.N. in 2012 for its involvement in North Korea’s nuclear, missile, and other WMD programs. It’s still doing business openly in both Beijing, Shenyang, and Hong Kong as Green Pine, Natural Resources Development Investment Corporation, King Helong International Trading, Korea Unhasu Trading Company, and Saeng Pil Trading Corporation. (Paras. 166-83.) Green Pine is the company behind the attempted sale of the lithium from … guess where:

24. The Panel investigated the 2016 attempted online sale of lithium metal by the Democratic People’s Republic of Korea. The enriched lithium-6 isotope, and products or devices containing it, are on the list of prohibited nuclear-related items adopted by the Security Council (see annex 4-4). According to IAEA, lithium-6 is used to produce tritium, an isotope found in boosted nuclear devices. This sales attempt suggests that the Democratic People’s Republic of Korea has access to remaining quantities of the material.

25. Li-6 is advertised for sale by a company of the Democratic People’s Republic of Korea, General Precious Metal, which the European Union has identified as an alias of Green Pine Associated Corporation (Green Pine). Mr. Chol Yun was listed as the contact person of General Precious Metal for sale of the mineral and has an address and phone numbers in Beijing (see annex 4-5). The same name appeared as third secretary of the embassy of the Democratic People’s Republic of Korea in Beijing on an official diplomatic list dated 24 September 2012 (see annex 4-6). The Panel notes a pattern whereby the Democratic People’s Republic of Korea has accredited Green Pine overseas representatives as diplomats. The Panel continues to investigate this diplomat’s involvement in prohibited activities and his possible connection with another prohibited activity (see para. 91).

Korea Ryonha Machinery Joint Venture was designated in 2013 for WMD proliferation, mainly for buying, selling, and manufacturing machine tools used for making both conventional weapons and WMDs. It shows up in POE reports year after year because it continues to operate, and to display its wares at trade shows, in both Russia and China. In 2016, a Chinese company exported several machine tools to North Korea, and the Chinese government was reportedly investigating (!) Ryonha’s involvement. (Para. 196.)

[From the U.N. Panel’s 2014 report]

Training of scientists. The resolutions ban member states from training North Koreans in sensitive technology that could be used for North Korea’s WMD programs. The North Korean universities that train the country’s nuclear and missile scientists have exchange agreements with universities in Russia and China. The Panel asked the Chinese universities to explain, but they never responded. (Para. 135.)

Missile Proliferation

Kwangmyongsong missile parts. Someone, presumably the U.S. Navy, recovered the pieces of a Kwangmyongsong missile North Korea launched in February 2016 and found that it contained “ball bearings and engraved Cyrillic characters … identical to those from the 2012 Unha-3, and a “camera [and] EMI filter” from a “Chinese manufacturer, Beijing East Exhibition High-Tech Technology Co. Ltd.” (Paras. 57-58.) That “someone” also discovered the Pyongyang had imported pressure transmitters from the U.K. and Ireland, via the manufacturer’s distributor in China, via middlemen in China. (Para. 59.) This suggests several layers of violations — China’s failure to expel North Korean representatives of sanctioned entities, to enforce export controls, or to inspect cargo going to North Korea.

Shipment of Scud parts to Egypt. Paragraphs 71-77 of last year’s report discuss a shipment of Scud missile parts to Egypt. Since then, the Panel has determined that the whole scheme was run out of the North Korean embassy in Beijing. (Paras. 88-89.) The shipper was Ryongsong Trading Company, and the seller was Rungrado Trading Company, which you may remember for its human trafficking in Europe. Rungrado was designated by the Treasury Department last year for “the exportation of workers” from North Korea to earn foreign currency for Pyongyang, some of which went to North Korean agencies that were designated for supporting WMD programs. South Korea considers Rungrado to be an alias for Ryongsong. (FN.99.) Although the U.S. Treasury Department routinely designates aliases, it has not designated Ryongsong.

Weapons Trafficking

North Korea is subject to a U.N. embargo on the import, export, sale, or purchase of weapons, including weapons components, technology, services, training, and dual-use items. Since March, China has been required to inspect all cargo “that has originated in the DPRK, or that is destined for the DPRK, or has been brokered or facilitated by the DPRK or its nationals, or by individuals or entities acting on their behalf or at their direction, or entities owned or controlled by them, or by designated individuals or entities, or that is being transported on DPRK flagged aircraft or maritime vessels.” (Para. 18.) Pretty clearly, that isn’t happening.

Syria rocket shipment. You’ve already read my post on this, right? Last August, Egyptian authorities seized a record haul of North Korean weapons, mostly PG-7 antitank rockets, hidden under iron ore aboard the M/V Jie Shun. I guessed that Syria was the destination because of the geography, but it’s possible that the client could have been Hamas or Hezbollah (which have also been Pyongyang’s arms clients).

This transaction also relied heavily on North Korean agents based in China. The bill of lading lists a shipper whose address is a hotel room in Dalian, a city often used by North Korean operatives. (Para. 63.) The holder of the ship’s compliance document was one Fan Mintan. A second man, Zhang Qiao, was its emergency contact, arranged for the ship’s insurance, and registered the ship’s operator in the Marshall islands. (Paras. 65-66.) Zhang is also involved in the coal trade with North Korea (para. 68), and thus played a role in violating UNSCR 2270 and 2321. He is also linked to another suspected North Korean smuggling ship, the M/V Light. A third man, Li Anshan, whom the Panel links to Ocean Maritime Management, a North Korean shipping company designated by the U.N. for arms smuggling, helped arrange for the Jie Shun’s Cambodian registration.

Eritrea radios shipment and Glocom. I previously posted about Glocom, the Reconnaissance General Bureau front company that manufactured sophisticated military radios and was based in Malaysia. Glocom made headlines after it was exposed just after the assassination of Kim Jong-nam. Starting at Paragraph 72 of its report, the Panel described how Glocom shipped radios to Eritrea. According to the Panel, that shipment “originated in China.”

75. The air waybills listed the shipper as Beijing Chengxing Trading Co. Ltd. According to the Chinese business registry, the company is still active, mainly trading in electronics, mining equipment and machinery (see annex 8-3). Mr. Pei Minhao (???) was listed as a legal representative until 26 February 2016 and still owns most shares in the company (see para. 164).

Glocom had North Korean representatives based in both Malaysia and China; had bank accounts, front companies, and procurement agents in both Malaysia and China; used mostly Chinese suppliers; and shipped its components to Beijing or Dandong for assembly (the report didn’t specify where). (Para. 77-84, 164.) Glocom did most of its business in U.S. dollars or euro through a sanctioned bank, Daedong Credit Bank, “to transfer funds to a supply chain of more than 20 companies located primarily on the Chinese mainland; in Hong Kong, China; and in Singapore.” (Paras. 233-25.)

Naval vessel repair & construction. Last year, the Panel reported that Green Pine had refurbished military patrol boats for Angola in violation of the arms embargo. The parts were shipped from China, the Panel has asked China for an explanation, and China still hasn’t given one. (Para. 103.)

North Korean UAV that crashed in South Korea. A Beijing company, Microfly Engineering and Technology, made it. After that, the trail leads to another Chinese company and two middlemen, who either point fingers at one another or deny all involvement. The Panel asked China to investigate, but China hasn’t responded. (Para. 107.) More here to FreeKorea, remarkable work.

Shady Globalism Hurts Personally When it Involves Water

Posted on March 15, 2017March 15, 2017 by Denise Simon

We witnessed the Flint, Michigan water crisis, where it was just safe to drink and few cared until they did. The water crisis goes far beyond Michigan where drinking water and water for showers, cooking and washing clothes is just not safe. Gray or used water is scooped to flush toilets. Where you ask? California and it was not due to the 5 year drought. The crisis goes beyond California, it is in Arizona and the corn/wheat belt in the middle of the country.

Really? How does globalism fit into the issue?

Big corporations, Wall Street and Hedge Funds as well as Saudi Arabia and Qatar are part of the crisis.

Individual farmers and small agriculture business has faded away, sold out to big Agri-corporations where offers to buy the land is a cover as the water and aquifers are more valuable. Water is the new gold or oil. Urban and suburban areas, just plain people are paying the price to save water for the sake of water to be available for bigger operations. In fact it is so bad, domestic and foreign interests are pumping water in one location and transferring via privately owned pipe to locations up to and perhaps more than 100 miles away.

When it comes to the EPA controlling water access and use, the agency was not wrong but it was actually wrong for reasons far beyond the headlines. The EPA is protecting, controlling and managing water not for the individual but rather for Wall Street firms and foreign investments.

The EPA is not the only agency, it includes the Department of Agriculture. Trump’s nominee for Secretary of Agriculture, Sonny Perdue has not yet been confirmed however Scott Pruitt has been confirmed as Secretary of the EPA.

Saudi Arabia

Saudi Arabia

Exports of U.S. food and agricultural products to Saudi Arabia reached a record $1.5 billion in fiscal year 2014. Major exports include coarse grains, soybeans, dairy products, and vegetable oils.

In September 2012, the United States signed a trade and investment framework agreement (TIFA) with the Gulf Cooperation Council (which includes Saudi Arabia, as well as the United Arab Emirates, Kuwait, Qatar, Oman and Bahrain) to continue expanding and liberalizing trade relations. More here.

Trade is a good thing for sure for farmers but the little guy is shut out of the trade system due to access of water and volume. The United States is feeding the Middle East.

The Office of Agricultural Affairs (OAA) is part of the U.S. Department of Agriculture’s Foreign Agricultural Service (FAS), which has 93 offices covering 171 countries

OAA promotes and facilitates exports of U.S. agricultural products to Saudi Arabia and Bahrain.

OAA promotes exports of U.S. agricultural products by:

Conducting and participating in market development activities with non-profit U.S. high value food product and commodity trade associations.

Hosting trade promotion events.

Identifying possible opportunities for U.S. products, and placing potential importers in contact with U.S. exporters.

Recruiting representatives of Saudi food and agricultural product importers to attend major regional and U.S. based food and agricultural shows.

Providing match making and trade lead services.

OAA facilitates the export of U.S. agricultural products by:

Reporting on market opportunities and conditions.

Resolving trade policy issues by working with the governments of the Kingdom of Saudi Arabia and Bahrain, and with the Gulf Standardization Organization (GSO).

Counseling and informing exporters and importers of U.S. agricultural products.

Developing and maintaining contacts in the food, logistics and agriculture sectors.

Coordinating workshops, technical seminars, and other events with non-profit U.S. commodity trade associations and other organizations.

***

The Middle Eastern kingdom, Saudi Arabia, needs hay for its 170,000 cows. So, it’s buying up farmland for the water-chugging crop in the drought-stricken American Southwest. 14,000 acres to be exact. Almarai Co. bought land in January that roughly doubled its holdings in California’s Palo Verde Valley, an area that enjoys first dibs on water from the Colorado River. The company also acquired a large tract near Vicksburg, Arizona, becoming a powerful economic force in a region that has fewer well-pumping restrictions than other parts of the state.

“Southern California and Arizona have good water rights. Who knows if that will change, but that’s the way things are now,” said Daniel Putnam, an agronomist at the University of California, Davis.

Over the last decade, Saudi Arabia and the United Arab Emirates emerged as significant buyers of American hay as their governments moved to curb water use. Together they accounted for 10 percent of U.S. exports of alfalfa and other grasses last year.

The land purchases signal that Almarai doesn’t just want to buy hay; it wants to grow. And it’s not the only Arab-owned Gulf company to take that approach.

Al Dahra ACX Global Inc., a top U.S. hay exporter based in Bakersfield, California, is owned by Al Dahra Agriculture Co. of United Arab Emirates. It farms extensively in Southern California and Arizona and, according to its website, plans to add 7,500 acres in the United States for alfalfa and other crops. The exporter packages crops grown across the West at its two plants in California and one in Washington state.

Most of the farms that Arab companies own worldwide are in developing nations. For instance, Qatar’s sovereign wealth fund has holdings in Latin America and Africa.

But part of the kingdom’s long-term food security strategy means investing in higher-cost countries with greater political stability, said John Lawton, owner of Agriculture Technology Co., a farming company in Saudi Arabia. More here from CSMonitor.

*** What about household use of water that is not drinkable?

The problem is that the groundwater it is using is unsafe for nearly 800,000 residents, according to the state’s water resources control board, because of longtime contamination from nitrates and arsenic.

That’s meant less drinkable water in California’s struggle to survive more than three years of severely dry weather.

“Most areas affected by contamination don’t have surface water supplies so they have to find new groundwater sources,” said Kurt Souza, a branch chief of the division of drinking water at the California State Water Resources Control Board.

“But that’s not always easy to do,” Souza added. “Sometimes you can find new ground locations for water and sometimes you can’t.”

The lack of rain and subsequent heavy demand on ground wells—which are also facing supply problems—is making a bad situation worse, said Sara Aminzadeh, executive director of the California Coastkeeper Alliance, a statewide advocacy group for safe water. According to the state water resources study, unsafe levels of arsenic are the top contaminant in groundwater supplies, followed by nitrates.

Nitrates are most often traced to farming chemicals and animal waste. Arsenic is found naturally in soil and rock in much of the world and seeps into groundwater.

Chronic low exposure to arsenic has been traced to respiratory problems in children and adults as well as having links to diabetes, cardiovascular diseases and cancers of the skin. More here from NBC, video included.

For more confusion on the shadiness of the whole thing, here are a few additional items. If it is going on in California, perhaps we need to investigate and ask the same questions in other farming regions of the country. Then perhaps we need deeper research out of the EPA and the Department of Agriculture where most of this gained additional traction and success under the Obama administration.

By the way, it was never really about that pesky Delta Smelt fish that the other environmentalists were trying to protect. That was a cover story.

The Monterey Amendment: Monterey Amendment ended up in court, challenged by the Planning and Conservation League, Citizens Planning Association of Santa Barbara County, and a small SWP contractor, the Plumas County Flood Control and Water Conservation District.In 2000, a state appeals court agreed with the challengers that the Environmental Impact Report for the amendment did not analyze provisions for completion of the SWP or permanent water shortages.
In 2003, a settlement was reached that called for preparation of a new EIR, more detailed reporting of the project’s actual delivery capability and public participation on any project amendments.

DWR in 2007 released a draft EIR, which discusses the project alternatives, growth inducement, water supply reliability, as well as potential areas of controversy and concern. The final EIR was released in 2009. DWR decided to continue to operate the SWP under the existing Monterey Amendment to the SWP long-term water supply contracts, including the Kern Water Bank transfer, and under the Settlement Agreement entered in PCL v. DWR. DWR’s decision was challenged by two groups of plaintiffs on issues relating to the adequacy of the EIR and the validity of the Monterey Amendment. The cases are currently being heard by the trial court. Final resolution of the issues is likely to take a number of years.
Roll International Corporation/Kern Water Bank: The Wonderful Company LLC, formerly known as Roll Global, is a private corporation based in Los Angeles, California. With revenues of over $4.8 billion,^[1] it functions as a holding company for Stewart and Lynda Resnick, and as such is a vehicle for their personal investments in a number of businesses. The company currently counts as business divisions the following brands: flower delivery service Teleflora, juice company POM Wonderful, bottled water company FIJI Water, Wonderful Pistachios and Wonderful Almonds (formerly Paramount Farms), Wonderful Citrus (formerly Paramount Citrus), sea freight company Neptune Pacific Line, JUSTIN Vineyards and Winery, pest control company Suterra, and in-house marketing agency Wonderful Agency
Paramount Farming: Paramount Farming Company, LLC produces almonds, pistachios, and pomegranates in California. It also offers pomegranate, mango, tangerine, blueberry, and cherry juices. The company was founded in 1986 and is headquartered in Bakersfield, California. Paramount Farming Company, LLC operates as a subsidiary of Roll International Corporation.
Westside Mutual Water Co., LLC.
IN 2014, California will establish statewide management of water pumped from the ground, under legislation signed Tuesday by Gov. Jerry Brown. This really limits household usage and benefits big farming entities.
California is sinking even faster than scientists had thought, new NASA satellite imagery shows. Some areas of the Golden State are sinking more than 2 inches (5.1 centimeters) per month, the imagery reveals. Though the sinking, called subsidence, has long been a problem in California, the rate is accelerating because the state’s extreme drought is fueling voracious groundwater pumping.
New NASA imagery reveals that parts of California are sinking at an astonishing rate, with some parts of the San Joaquin Valley sinking as much as 2 inches per month.

Credit: Canadian Space Agency/NASA/JPL-Caltech

Editor’s Note: This story was updated at 2:00 p.m. E.T.

California is sinking even faster than scientists had thought, new NASA satellite imagery shows.

Some areas of the Golden State are sinking more than 2 inches (5.1 centimeters) per month, the imagery reveals. Though the sinking, called subsidence, has long been a problem in California, the rate is accelerating because the state’s extreme drought is fueling voracious groundwater pumping.

“Because of increased pumping, groundwater levels are reaching record lows — up to 100 feet (30 meters) lower than previous records,” Mark Cowin, director of California’s Department of Water Resources, said in a statement. “As extensive groundwater pumping continues, the land is sinking more rapidly, and this puts nearby infrastructure at greater risk of costly damage.” [It’s Raining Spiders! The Weirdest Effects of California’s Drought]

What’s more, this furious groundwater pumping could have long-term consequences. If the land shrinks too much, and for too long, it can permanently lose its ability to store groundwater, the researchers said.

The state’s sinking isn’t new: California has long suffered from subsidence, and some parts are now a few dozen feet lower than they were in 1925, according to the U.S. Geological Survey.

But the state’s worst drought on record — 97 percent of the state is facing moderate to exceptional drought — has only accelerated the trend. To quantify this accelerated sinking, researchers at the Department of Water Resources and NASA’s Jet Propulsion Laboratory in Pasadena, California, compared satellite imagery of California over time. Thanks to images taken from both satellites and airplanes using a remote-sensing technique called interferometric synthetic aperture radar (InSAR), which uses radar to measure elevation differences, researchers can now map changes in the surface height of the ground with incredible precision. For the current study, the team stitched together imagery from Japan’s satellite-based Phased Array type L-band Synthetic Aperture Radar and Canada’s Earth Observation satellite Radarsat-2, as well as NASA’s airplane-based Uninhabited Aerial Vehicle Synthetic Aperture Radar.

Certain hotspots are shrinking at an astonishing rate — regions of the Tulare Basin, which includes Fresno, sank 13 inches (33 cm) in just eight months, they found. The Sacramento Valley is sinking about 0.5 inches (1.3 cm) per month. And the California Aqueduct — an intricate network of pipes, canals and tunnels that funnels water from high in the Sierra Nevada mountains in northern and central California to Southern California — has sunk 12.5 inches (32 cm), and most of that was just in the past four months, according to the new study.

The unquenchable thirst for groundwater in certain regions is largely a result of agriculture: Most of the state’s agricultural production resides in the fast-sinking regions around some of the state’s most endangered river systems — the San Joaquin and Sacramento rivers. As the heat and lack of rainfall have depleted surface-water supplies, farmers have turned to groundwater to keep their crops afloat.

Subsidence isn’t just an aesthetic problem; bridges and highways can sink and crack in dangerous ways, and flood-control structures can be compromised. In the San Joaquin Valley, the sinking Earth has destroyed the outer shell around thousands of privately drilled wells.

“Groundwater acts as a savings account to provide supplies during drought, but the NASA report shows the consequences of excessive withdrawals as we head into the fifth year of historic drought,” Corwin said. “We will work together with counties, local water districts, and affected communities to identify ways to slow the rate of subsidence and protect vital infrastructure such as canals, pumping stations, bridges and wells.”

Investigation: Obama Gave Soros Money for Leftist Revolutions

Posted on March 14, 2017March 14, 2017 by Denise Simon

Ah what you say? I have been begging for moments like this, where finally those with known but hidden facts are finally demanding investigations and whistleblowers bubble to the surface. Yippee!!

Furthermore as you read on, you will likely agree with me, that Rex Tillerson has the worst job in government. Remember many of the former Hillary and Kerry State Department personnel have quit, walked out or are stonewalling the new Trump administration in the diplomatic realm as they refuse often to cooperation with House and Senate committees.

Some of this may not turn out well for the previous administration team. And by the way, Obama spent our taxpayer dollars to deny access to government documents.

The Obama administration in its final year in office spent a record $36.2 million on legal costs defending its refusal to turn over federal records under the Freedom of Information Act, according to an Associated Press analysis of new U.S. data that also showed poor performance in other categories measuring transparency in government.

For a second consecutive year, the Obama administration set a record for times federal employees told citizens, journalists and others that despite searching they couldn’t find a single page of files that were requested.

And it set records for outright denial of access to files, refusing to quickly consider requests described as especially newsworthy, and forcing people to pay for records who had asked the government to waive search and copy fees.

The government acknowledged when challenged that it had been wrong to initially refuse to turn over all or parts of records in more than one-third of such cases, the highest rate in at least six years. More here from ABC.

***

Further:

Top lawyers who helped the Obama White House craft and hold to rules of conduct believe President Donald Trump and his staff will break ethics norms meant to guard against politicization of the government — and they’ve formed a new group to prepare, and fight.

United to Protect Democracy, which draws its name from a line in President Barack Obama’s farewell address that urged his supporters to pick up where he was leaving off, has already raised a $1.5 million operating budget, hired five staffers and has plans to double that in the coming months. They’ve incorporated as both a 501(c)(3) and 501(c)(4), allowing them to operate as a nonprofit but participate in some forms of political advocacy as well.

They started by submitting 50 Freedom of Information Act requests this week that they believe will confirm their suspicions. The plan is to bring what they find to reporters, build it into pressure for congressional oversight with the help of a campaign director they’ll hire, and, as necessary, to file lawsuits.

They’re also hoping to establish themselves as a base for government employees worried about ethics violations — up to and including becoming whistleblowers — and are hoping that their website, https://unitedtoprotectdemocracy.org/,can become a resource. More details here from Politico.

***

Congress Demands Investigation Into Obama Admin Meddling in
Foreign Elections

Obama admin gave taxpayer money to Soros to spark leftist political revolution

A group of leading senators is calling on newly installed Secretary of State Rex Tillerson to immediately launch an investigation into efforts by the Obama administration to sway foreign elections by sending taxpayer funds to “extreme and sometimes violent political activists” that promote leftist causes, according to a copy of the letter.

The lawmakers disclosed multiple conversations with foreign diplomats who outlined active political meddling by the Obama administration’s State Department, including the use of taxpayer funds to support leftist causes in Macedonia, Albania, Latin America, and Africa.

A portion of this State Department funding appears to have gone to organizations supported by the controversial liberal billionaire George Soros, according to the letter, which was authored by Republican Sens. Mike Lee (Utah), Jim Inhofe (Okla.), Thom Tillis (N.C.), Ted Cruz (Texas), David Perdue (Ga.), and Bill Cassidy (La.).

The senators are asking Tillerson to launch a full-scale investigation into these funding efforts in order to determine how exactly the Obama administration sought to promote left-leaning causes and political parties across the globe.

The latest disclosures of this activity mirror efforts by the Obama administration to send taxpayer funds to Israeli organizations that opposed Prime Minister Benjamin Netanyahu in the country’s last election.

Political leaders from a range of nations spent months informing the lawmakers about these activities.

“Over the past few months, elected officials and political leaders of foreign nations have been coming to me with disappointing news and reports of U.S. activity in their respective countries,” Lee said in a statement. “This includes reports of diplomats playing political favorites, USAID funds supporting extreme and sometimes violent political activists, and the U.S. government working to marginalize the moderates and conservatives in leadership roles.”

“This sort of political favoritism from our missions around the world is unacceptable and endangers our bilateral relationships,” he said.

The senators are seeking an investigation that would review “all funds associated with promoting democracy and governance and review the programs, accounts, and multiplicity of U.S. entities involved in such activities.”

Such an investigation could shed light on the distribution of taxpayer funds to organizations and causes meant to instigate left-leaning political change abroad.

The letter insists that Tillerson should “review how all our tax dollars are being utilized in order to halt activities that are fomenting political unrest, disrespecting national sovereignty and civil society, and ultimately undermine our attempts to build beneficial international relationships.”

The lawmakers outline specific evidence of political meddling.

“We have received credible reports that, over the past few years, the U.S. Mission there has actively intervened in the party politics of Macedonia, as well as in the shaping of its media environment and civil society, often favoring left-leaning political groups over others,” they wrote.

This activity was pushed by USAID and groups associated with Soros’ Open Society Foundations, according to the lawmakers.

The organizations are said to have pushed a “progressive agenda” meant to “invigorate the political left” using taxpayer funds, according the letter.

“Respected leaders from Albania have made similar claims of U.S. diplomats and Soros-backed organizations pushing for certain political outcomes in their country,” the lawmakers wrote.

“Time and again, foreign leaders visiting Washington have expressed concerns to us about how American taxpayer funds are being used counterproductively in their respective countries,” the lawmakers disclosed, referring to efforts undertaken in Latin America and Africa.

This type of interference in foreign countries must stop immediately, the lawmakers said.

NBC, Washington

U.S. Charges Russian FSB Officers and Their Criminal Conspirators for Hacking Yahoo and Millions of Email Accounts

FSB Officers Protected, Directed, Facilitated and Paid Criminal Hackers

Saudi Arabia

Congress Demands Investigation Into Obama Admin Meddling in Foreign Elections

Obama admin gave taxpayer money to Soros to spark leftist political revolution

Congress Demands Investigation Into Obama Admin Meddling in
Foreign Elections