The U.S. has a Russian Problem, but it is Worse in the UK

Remember the polonium death in Britain? There was a chilling documentary about it. The case still rolls on.

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The United Kingdom has frozen the assets of two Russians accused of carrying out the 2006 killing in London of former Federal Security Service officer Aleksandr Litvinenko.

London on January 22 issued the order to freeze the assets of Andrei Lugovoi and Dmitry Kovtun under the terms of the Antiterrorism, Crime, and Security Act of 2001.

Dmitry Kovtun (left) and Andrei Lugovoi have denied any involvement in Aleksandr Litvinenko's death. (combo photo)

On January 21, Judge Robert Owen, who chaired the British government inquiry into the Litvinenko killing, said he was certain Lugovoi and Kovtun killed Litvinenko by placing a lethal dose of polonium 210 in his tea during a meeting on November 1, 2006.

Litvinenko, who was an outspoken critic of Russian President Vladimir Putin, died several days later.

Both men deny any involvement in Litvinenko’s death. However, British investigators found traces of polonium 210 in hotels, restaurants, and aircraft used by Lugovoi. Lugovoi was reportedly treated for radiation poisoning in Moscow in December 2006.

Lugovoi, a former Soviet KGB agent, was elected a member of the Russian State Duma in 2007. Putin awarded him a state medal “for services to the motherland” in 2015. Hat tip

Meanwhile, we have the case of Andrey Borodin that lives in Britain and he is a wanted man by none other than Vladimir Putin.

Mr Borodin, who is sought by Moscow on fraud and corruption charges, which he strongly denies, and who was granted asylum in February, told The Independent: “Given that my successful application for asylum in the UK included all details of the Russian criminal investigations and argued that they are politically motivated, I now believe that the Russian authorities are via the media trying to lend credibility to their claims by referring to the Swiss investigation.”

He added: “My lawyers are engaging with the Swiss authorities and I am confident that a satisfactory conclusion will be reached in the not too distant future.”

It emerged in April that Mr Borodin was the target of a potential assassination plot involving a hitman who claimed to have been approached by Chechen political figures and offered as much as £600,000 to kill him in Britain.

The banker, who is a close ally of the former mayor of Moscow Yury Luzhkov, arrived in Britain in March 2011 after a warning that, following years of lucrative success negotiating Moscow’s treacherous nexus of business and politics, his star was on the wane.

The details of the assassination plot, brought to the attention of MI5 after the hitman pulled out of the deal, were considered to be credible. More chilling details to the story here.

So why do should we care? Perhaps the pressure of nefarious Russian plots and history would explain much of the goings-on in the U.S. political architecture…right? Russia, Russia, Russia….everywhere.

Yes…it seems that Andrey Borodin has hired a U.S. lobby firm, BGR Government Affairs to represent him. The filing form is here. Apparently at issue is a visa problem and well the case is assigned to  Haley Barbour, former Mississippi governor and Republican National Committee chair, and Maya Seiden, a former State Department aide under Secretary Hillary Clinton.

Related reading: Russia posing most complex challenge since Cold War: UK army chief 

In another meanwhile, after the unchallenged Hillary Clinton scandal of Skolkovo and Silicon Valley, there is yet another operation underway.

(Reuters) – Masha Drokova, a 28-year-old Russian political activist turned venture capitalist, on Tuesday joined a small family of Russian nationals who have set up shop as Silicon Valley venture investors.

Drokova’s new firm, Day One Ventures, will make investments of $100,000 to $1 million from a fund that initially totals nearly $50 million, a person familiar with the matter said. Drokova hopes her experience as an angel investor and a prior career in public relations will give her edge.

“Masha knows a lot of people,” said Serguei Beloussov, a senior investing partner at venture firm Runa Capital and who worked with Drokova until 2014. “She is good in that she gets access to very good startups.”

Drokova’s new fund comes as relations between the United States and Russia remain fraught and foreign investments of all types into U.S. technology companies receive more scrutiny.

She is following the lead of several other Russian investors who say that being based in the United States – and raising money from wealthy individuals rather than institutions – helps them get better access to startups and curtails concerns about the source of their money, even if some of it still comes from Russia.

Close to 20 percent of Runa Capital’s $135 million fund comes from wealthy Russian individuals, said Beloussov, who is Russian-born but now a Singapore citizen. Silicon Valley firm GVA Capital, managed by Russian native Pavel Cherkashin, has raised money from individuals in Russia, Ukraine, Kazakhstan and Georgia.

“There is a growing number of funds like us – Russian-speaking fund managers in the U.S. but sourcing checks from Russia and the former Soviet Union,” said Cherkashin. “That trend is growing.”

Cherkashin estimates startup investments from U.S.-based fund managers who raise capital from Russia has more than tripled over the last three years. This would include a 2016 investment in Uber by FortRoss Ventures, which has an office in Silicon Valley and whose funds come mostly from Russian investors, including state-owned Sberbank.

Drokova said her fund comes from individual entrepreneurs in the United States and Europe.

Drokova spent five years as a leader of a Kremlin-backed youth political movement in Russia called Nashi before moving to the United States at age 23. She now describes her political views as “liberal” and says she is no longer involved in Russian politics.

Drokova said her nationality and political work have not yet posed any challenges in her new career. But other Russians who have venture firms in Silicon Valley say they still run into obstacles, including extra scrutiny when they try to open U.S. bank accounts.

Sergey Gribov of Flint Capital, a venture firm whose partners are Russian-born but does not raise money in Russia, said he discloses all the details of his funding sources to head off suspicions.

“From time to time it comes up,” he said. “I would say it helps to be transparent.”

 

 

Russian Trolls, DAVOS and President Trump

So, while President Trump has again changed his schedule to attend the DAVOS World Economic Forum, there are some key items on the agenda.

With cybersecurity a top concern at the annual World Economic Forum meeting in Davos, Switzerland, Yahoo Finance asked experts: What is the topic or topics that business and government leaders should be focusing on when it comes to cybersecurity and policy in 2018?

Jason Glassberg, co-founder of Casaba Security, responded that currently the most pressing topics are “cryptocurrency ecosystems, election security, ‘DevSecOps’ (this may sound dull, but think: IoT, cars, airline computer systems, smart homes, smart cities, Intel chips, Juniper routers, Huawei, the Internet, basically everything digital under the sun), increased regulation, cyber warfare, and attribution.”

Glassberg broke down each of these six issues:

Cryptocurrency is obviously a major financial story these days. Everybody and their brother is looking into how to capitalize on it. These markets are notoriously murky, however – fraud and scams are rampant, as are the cyber attacks. So how do you make it safe? How do you take a Wild West gunslinging town, and turn it into the suburbs? It’s a tough issue, and I think we’ll have to look at the gambling industry as an example. The key to this is establishing better security within this ecosystem for the real players. The next step is finding a way to guarantee losses due to theft, similar to the FDIC [Federal Deposit Insurance Corporation] or SIPC [Securities Investor Protection Corporation].

Election security needs no introduction. But while everybody has been freaking out about voter suppression via phony Facebook ads, the reality is that the 2016 election interference was just a sample. It was a nation-state gently dipping its toe in the water, but deciding not to go all the way in. If a country wanted to get serious about election attacks, it could go much further. This is what we need to be prepared for.

It would be possible for a serious player to delete or alter voter registration databases, DDoS the servers used to run those database or the actual voting machines; not to mention, hack the voting machines themselves. The latter would definitely cross a red line, if for instance we found out that Russia had re-tabulated voting machines to directly affect the outcome of an election. But what if the attack was a little less black-and-white? For instance, what if the machines were just infected with random malware that didn’t actually do anything, other than make itself known to the IT team? That would send shockwaves through the system and call into question the voting results, even though the votes weren’t actually affected. This is what we need to be thinking about.

DevSecOps is one of those terms that causes people’s eyes to glaze over when they hear it (if they ever do), but it’s actually very relevant to our lives today. What it refers to is incorporating security into the software or hardware development process. This is hugely significant today because as we’re seeing with the Internet of Things devices that are flooding the market, and the connected cars that are rolling out onto our public streets, software security is usually not the first priority of these manufacturers.

But not to just pick on those two markets, the reality is that DevSecOps is a problem for every industry on the planet, even the security field. Businesses aren’t doing enough to bake in rigorous security into the DNA of their products from the very beginning. Too often they are relying on software updates and patches to fix the problem after the fact, and that is never an ideal solution. This will continue to become a bigger issue in the months and years ahead.

Increased regulation is another issue that businesses could face, as governments try to contend with the growing risk of data breaches and attacks on key infrastructure, whether it’s the GDPR [General Data Protection Regulation] in Europe or the Singapore Cybersecurity Bill. In my own opinion, I think that companies that store consumer data (whether it’s credit card numbers or credit reports), as well as private infrastructure entities like telecom and power companies, are probably most at risk of higher costs due to regulation.

Cyber warfare is another pressing issue today, as more countries are investing in offensive cyber operations. This often puts businesses in the crosshairs and it sticks government in a tough position too because there is no easy solution for preventing or responding to these incidents. A key question when it comes to cyber warfare is do we engage in “active defense”?

That is more commonly referred to as hack-back, but it’s a more complex concept than simply tit-for-tat cyber retaliation. Active defense can mean anything from advanced investigative techniques to disabling the servers behind an attack or turning a city’s lights off for 30 minutes in order to send a message to a rival nation. How we deter and respond to cyber warfare tactics will be a key question for policymakers and businesses over the next five to 10 years.

Attribution is another ongoing issue for governments and businesses, and it’s related directly to the cyber warfare question, although it also encompasses cybercrime as well. What’s also key with attribution is that the pressure to solve these cases could lead to encroachments on digital privacy. In fact, I’d be very surprised if that did not happen. Potential targets here include Tor, VPNs, and encryption tools in general.”

Over 500 criminal ‘dreamers’ ordered deported are still in U.S.

WE: In the latest blow to the pure image portrayed by their supporters in Congress, newly released statistics show that over 500 illegals stripped of their “dreamer” status due to crime and gang charges remain on the streets.

A new analysis of United States Citizenship and Immigration Services statistics found that 2,127 individuals had their amnesty status terminated for criminal activity and/or gang activity as of November 22, 2017.

Of those booted from the Obama-era Deferred Action for Childhood Arrival amnesty program, 562 were deported.

But, said the analysis from the Center for Immigration Studies, a near equal amount — 535 — were released by Immigration and Customs Enforcement.

“While it is reassuring that USCIS is revoking DACA benefits for criminal gang members it identifies, it is concerning that almost as many criminal alien DACA beneficiaries have been released as have been removed to their home country,” said the report’s author and CIS Policy Studies Director Jessica M. Vaughan.

Her report reviewed USCIS data provided to Republican Sen. Chuck Grassley.

While a tiny portion of the overall DACA population of nearly 700,000, the report and other portraying the illegals as more prone to crime and low-pay employment challenge that painted by liberals that most are high-achievers.

The fate of DACA is at the center of the current budget crisis. Democrats want a deal to preserve their amnesty as part of a budget deal, while Republicans want them included in a larger immigration bill that would grant a path to citizenship in exchange for President Trump’s key demands, including funding to build a southern border wall.

Her numbers:

  • Removed from the United States: 562
  • In ICE Custody: 90
  • Released from ICE Custody: 535
  • No Record of Removal, Detention or Release by ICE: 940
  • Total: 2,127

Trump has put a focus on deporting gang members and Vaughan highlighted what USCIS had to say about those criminal organizations. She wrote:

USCIS also provided a list of more than 45 gang affiliations of the ex-DACA criminals. It includes some of the most violent and dangerous gangs in the United States, such as MS-13, 18th Street, the Latin Kings, and the Trinitarios. It includes some lesser-known gangs as well, with names like Last Generation Korean Killers and Maniac Latin Disciples.

USCIS has not released information on where these gang members were living, but the gang names sometimes identify their location: Oakland 30 Nortenos, Orange County, Angelino Heights Surenos, East San Diego, Inland Empire, Pacoima Van Nuys Boys, and West Merced Nortenos, all of which are presumably in California.

*** Dreamers versus DACA

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Development, Relief, and Education for Alien Minors Act or the Dream Act was originally introduced in 2001 by Dick Durbin and Orin Hatch. The proposed bill failed several times. Members of Congress have introduced several forms of this bill in both the House of Representatives and the Senate. Members in the House passed one such bill on December 8, 2010 by a vote of 216–198;[13] Senators debated a version of the DREAM Act on September 21, 2010. A previous version of the bill, S. 2205, which required 60 votes to gain cloture, failed on a 52–44 vote in 2007, eight votes short of overcoming a filibuster by senators opposed to the bill.

In 2011, California passed their own version of the Dream Act. Continued edits and iterations of the Dream Act have been introduced in both houses of Congress, yet no version has advanced. So, Barack Obama used his executive authority to declare the Deferred Action on Childhood Arrivals, DACA.

Both issues must be debated in together and they have been for at least 17 years. What is rarely discussed is those under DACA protections do drop off monthly for various reasons. So we are still challenged with what the real numbers include.

Trump has urged Congress to pass legislation by March 2018 that would give legal status to unauthorized immigrants enrolled in DACA, and some members of Congress have said they plan to propose legislation along those lines. (DACA enrollees whose benefits expire after March 5, 2018, will be the first to be dropped from the program.)

Although roughly 800,000 unauthorized immigrants have ever received benefits through DACA, about 110,000 of this group are no longer enrolled in the program. About 70,000 former DACA participants did not renew their benefits or had their renewal applications denied. Another 40,000 have adjusted their legal status and obtained green cards, which grant lawful permanent residence. (Some unauthorized immigrants in the U.S. can obtain legal status by marrying an American citizen or lawful permanent resident, obtaining asylum, or receiving certain types of visas such as those given to victims of a crime, among other ways.)

To qualify for DACA, enrollees must meet certain conditions, such as being enrolled in high school or having a high school diploma or GED equivalent, and not being convicted of a felony, significant misdemeanor, or three or more other misdemeanors. For more key facts and details, go here.

There are some real unanswered questions which include monthly costs to the taxpayer, enforcement of those conditions, reporting of crimes versus those protected under DACA and most of all, how long does ‘deferred’ last?

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The Obama White House stated:

Today, the U.S. Citizenship and Immigration Services will begin accepting requests for consideration of deferred action for childhood arrivals. Deferred action is a discretionary determination to defer removal action of an individual as an act of prosecutorial discretion. Under this process, USCIS will consider requests on a case-by-case basis. While this process does not provide lawful status or a pathway to permanent residence or citizenship, individuals whose cases are deferred will not be removed from the United States for a two year period, subject to renewal, and may also receive employment authorization. 

There are key words in that text. They include: accept, requests, consideration, discretionary, defer, case by case, subject to renewal. None of the actions under DACA is rubber-stamped with approval something all the Democrats and many Republicans have overlooked as well as the media.

FBI’s McCabe, Coming or Going, Silence from Wray

It looks like Jeff Sessions is taking Trump’s cues to clean house at the FBI

  • Attorney General Jeff Sessions is pushing FBI director Christopher Wray to replace deputy FBI director Andrew McCabe and former FBI general counsel James Baker.
  • President Donald Trump has accused McCabe of putting his thumb on the scale of the FBI’s investigation into Trump’s 2016 rival, former Democratic nominee Hillary Clinton.
  • Meanwhile, congressional Republicans are targeting Baker as they investigate his contacts with the reporter who first broke the story about the explosive Trump-Russia dossier.
  • Former FBI director James Comey apprised both McCabe and Baker of his private conversations with Trump. Those conversations make up the basis of special counsel Robert Mueller’s obstruction-of-justice investigation.

BusinessInsider: Attorney General Jeff Sessions has been pushing FBI director Christopher Wray to oust two key officials who have been targeted by President Donald Trump and congressional Republicans.

Urging Wray to make a “fresh start” at the FBI, Axios reported that Sessions recommended he replace deputy FBI director Andrew McCabe and former general counsel James Baker, who was reassigned within the bureau in December.

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The White House tapped McCabe to be acting FBI director when Trump fired James Comey last May. But McCabe appeared to become a sore spot for Trump as the bureau’s investigation into whether the Trump campaign colluded with Moscow during the election began picking up steam last year.

“Problem is that the acting head of the FBI & the person in charge of the Hillary investigation, Andrew McCabe, got $700,000 from H for wife!” Trump tweeted last July, referring to the FBI’s investigation into former Secretary of State Hillary Clinton’s use of a private email server to conduct government business.

The next day, he added in a pair of tweets: “Why didn’t A.G. Sessions replace Acting FBI Director Andrew McCabe, a Comey friend who was in charge of Clinton investigation but got … big dollars ($700,000) for his wife’s political run from Hillary Clinton and her representatives. Drain the Swamp!”

Trump ramped up his tirade in December. “How can FBI Deputy Director Andrew McCabe, the man in charge, along with leakin’ James Comey, of the Phony Hillary Clinton investigation (including her 33,000 illegally deleted emails) be given $700,000 for wife’s campaign by Clinton Puppets during investigation?” Trump tweeted on December 23.

McCabe’s wife, Dr. Jill McCabe, mounted an unsuccessful run for a Virginia state Senate seat in 2015. Her campaign received $675,000 in donations from the Virginia Democratic Party and from Common Good VA, the super PAC run by Democratic Virginia Gov. Terry McAuliffe, a longtime Clinton supporter. None of the donations came from Clinton or her family.

McCabe was also not in charge at the time of the bureau’s investigation of Clinton’s use of a private email server. He took on an “oversight role” in the investigation in February 2016 — long after his wife lost her election bid. Comey, who was FBI director at the time, was tasked with making the final decisions in the Clinton email probe. He ultimately characterized Clinton’s actions as “extremely careless” but did not recommend that the Department of Justice bring charges against her.

The FBI released a trove of internal emails and documents earlier this month which confirmed that McCabe was not warned against becoming involved in the Clinton investigation but recused himself anyway following a Wall Street Journal report about political donations made to his wife’s campaign in 2015.

McCabe and Baker are privy to critical events in the Russia probe

Meanwhile, Baker, the former FBI general counsel, is being targeted by Republicans on the House Intelligence Committee who are said to be investigating his contacts with Mother Jones reporter David Corn leading up to the 2016 election, Politico reported in December. Corn was the first to report on the existence of the explosive dossier compiled by former British spy Christopher Steele, which alleges improper ties between Trump and Russia, in late October 2016.

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Corn denied Baker was his source, and several prominent figures in the national security community slammed Politico for what they characterized as a “smear” against Baker without offering sufficient context.

It is normal practice for a new FBI director to bring in his own general counsel, as Comey did when he first brought Baker on to serve as the bureau’s top lawyer.

But the timing of his reassignment was questioned by some who wondered whether the move was Wray’s response to Republican pressure to rid the bureau’s ranks of officials perceived as partisan or biased against Trump.

Comey informed both Baker and McCabe, as well as his chief of staff and senior counselor James Rybicki, of his conversations with Trump last year, during which he said Trump asked him for his loyalty and to let go of the bureau’s ongoing investigation into former national security adviser Michael Flynn.

Flynn pleaded guilty in early December to one count of making false statements to federal agents about his contacts with Sergei Kislyak, Russia’s former ambassador to the US. Trump’s conversations with Comey about Flynn — and his subsequent decision to dismiss the FBI director — are at the center of the obstruction-of-justice investigation that special counsel Robert Mueller is overseeing as part of the Russia investigation.

Top U.S. Intel Officials Hacked by U.K. Teen

Data lives matter, yet while we little people seem to remain vulnerable and victims of phishing and hacking, even those tasked with working to protect against cyber attacks, too are themselves victims.

This story is extraordinary given all the cyber intelligence officials have in their possession and the protections they should have at the taxpayer expense, while others fend for themselves with off the shelf protections.

Even more remarkable is the media was quite thin on reporting any of this in detail in 2017 until the case heard in a United Kingdom courtroom.

British 15-year-old gained access to intelligence operations in Afghanistan and Iran by pretending to be head of CIA, court hears

A 15-year-old gained access to plans for intelligence operations in Afghanistan and Iran by pretending to be the head of the CIA to gain access to his computers, a court has heard.

From the bedroom of the Leicestershire home he shared with his mother, Kane Gamble used “social engineering” – where a person builds up a picture of information and uses it manipulate others into handing over more – to access the personal and work accounts of some of America’s most powerful spy chiefs .

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The teenager persuaded call handlers at an internet giant that he was John Brennan, the then director of the CIA, to gain access to his computers and an FBI helpdesk that he was Mark Giuliano, then the agency’s Deputy Director, to re-gain access to an intelligence database.

He also targeted the US Secretary of Homeland Security and Barack Obama’s Director of National Intelligence from his semi-detached council house in Coalville.

Gamble taunted his victims online, released personal information, bombarded them with calls and messages, downloaded pornography onto their computers and took control of their iPads and TV screens, a court heard.

Mr Justice Haddon-Cave noted: “He got these people in his control and played with them in order to make their lives difficult.

John Lloyd-Jones QC, prosecuting, said that Gamble founded Crackas With Attitude (CWA) in 2015, telling a journalist: “It all started by me getting more and more annoyed about how corrupt and cold blooded the US Government are so I decided to do something about it.”

Mr Lloyd-Jones said that it was a common misconception that the group were hackers when in fact they used “social engineering” to gain access to emails, phones, computers and law enforcement portals.

“It involves manipulating people, invariably call centre or help desk staff, into permitting acts or divulging confidential information,” the prosecutor said.

Gamble, who has pleaded guilty to ten offences under the computer misuse act, first targeted Mr Brennan and gained access to his Verizon internet account by pretending first to be employee of the company and then Mr Brennan himself, building up an increasingly detailed picture.

At first he was denied access to his computers as he could not name Mr Brennan’s first pet, but on later calls the handler changed the pin and security questions.

He used similar methods to access Mr Brennan’s AOL account and eventually Gamble was able to access his emails, contacts, his iCloud storage account and his wife’s iPad remotely.

Mr Lloyd-Jones QC said: “He accessed some extremely sensitive accounts referring to, among other things, military operations and intelligence operations in Afghanistan and Iran.”

Gamble, who is now 18, later posted sensitive information on Twitter and Wikileaks and taunted officials about his access, sometimes using the tag #freePalestine and claiming it was because the US Government was “killing innocent people”.

Gamble used similar techniques to hack the home broadband of Jeh Johnson, the Secretary of Homeland Security, and was able to listen to his voicemails and send texts from his phone.

He bombarded Mr Johnson and his wife with calls, asking her: “Am I scaring you?” and left messages threatening to “bang his daughter”, the court heard.

Around October 2015, when Gamble turned 16, gained access to Mr Giuliano’s home accounts by pretending to be the FBI boss and using the information gained he accessed the FBI’s Law Enforcement Enterprise Portal (Leap).

Mr Lloyd-Jones QC described it as “a gateway providing law enforcement agencies, intelligence groups and criminal justice agencies access to beneficial resources”.

This included criminal intelligence and details of police officers and government employees, and Gamble boasted: “This has to be the biggest hack, I have access to all the details the Feds use for background checks.”

The FBI had realised that their system was breached and the password was changed, but at one point Gamble managed to change it and regain access by pretending to be Mr Giuliano in a call to the helpdesk.

He used his access to steal and post online personal details of Officer Darren Wilson who shot and killed black teenager Michael Brown in Ferguson Missouri.

At the same time he harassed the Giuliano family and people associated with them and bombarded them with calls, meaning that they were forced to seek protection from the intelligence agencies and an armed guard was placed at their home.

Mr Obama’s  senior science and technology adviser John Holdren had his personal accounts hacked and Gamble passed all of his personal details to an accomplice who used them to make hoax calls to the local police claiming that there was a violent incident at Mr Holdren’s house resulting in an armed swat team being deployed.

His eight month reign of chaos was brought to an end in February 2016 after he gained access to the US Department of Justice’s network over a number of days, accessing details of 20,000 FBI employees and case files including that on the Deepwater Horizon Oil Spill.

The FBI and the US secret service had such concern over the material that he had seen that they immediately called police in the UK and he was arrested at his home.

The Old Bailey also heard that he accessed the private calls and emails of Avril Haines, the White House deputy national security adviser and FBI Special Agent Amy Hess.

In the case of Ms Hess he downloaded films on to her computer, including one called Hackers and V for Vendetta as well as a pornographic title. He changed an equipment list on her computer to a list of derogatory terms.

James Clapper, Director of National Intelligence under President Obama, was also targeted and all of his home phone calls were diverted to the Free Palestine Movement.

Vonna Weir Heaton, the former intelligence executive of the US National Geospatial Intelligence Agency. Had her social media accounts access by Gamble who sent messages pretending to be her.

At one point on an internet chat he said that he had considered not sharing any more information “because it put lives at risk, but then I thought they are killing innocent people every day”, the court heard.

Medical experts for the defence argue that he is on the autism spectrum and at the time of his offending had the mental development of a 12 or 13-year-old.

He has no friends to speak off and is closest to his mother Ann, a cleaner who reportedly won a £1.6million lottery jackpot in 1997  but  “lost all the money on doomed property deals”.

William Harbage QC said that after his arrest he told doctors “it was kind of easy” and that he had little consequences of his actions “in his bedroom on the internet thousands of miles away”.

Mr Justice Haddon-Cave will sentence him on a date to be fixed.