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Putin vs. McFaul, DHS, Browder and Why

It all comes down to the Magnitsky Act. In short Vladimir Putin is furious over this law and other countries are slowly setting it as law as well, most recently it appears, Spain.

When President Trump met with Putin in Helsinki, that was part of the discussion, repeal the law or apply waivers and allow Moscow access to key people, such as Bill Browder, a British citizen, former Ambassador McFaul, a few DHS investigators and two others, a fellow named Parker and other named Otto.  Finally the Trump White House said NYET.

It was in May that Bill Browder, who actually is attending the 2018 Aspen Security Forum was arrested in Spain and almost immediately released due to some major confusion over a Red Notice launched by Russia, one of many times. Why was Browder in Spain? Likely helping authorities there with international crime/money laundering by Russian operatives.

What is that case about exactly? Well it is an extension of the reach of the Magnitsky Act.

As Jamestown reported in February of 2018:

On February 19, after a decade of investigations, Spanish prosecutors finally launched a major trial against notable members of the Russian mafia operating in the Iberian country. All in all, sufficient evidence was collected against 18 persons (cases, however, were opened against 27 alleged members of the Russian mafia and their supporters), of whom 6 are Spanish nationals charged with falsification of documents and auxiliary support. The culprits have been accused of money laundering and the “creation of a criminal community in Spain” (Elmundo.es, February 19). The legal process promises to become one of the most resonant recent cases related to the Russian mafia abroad. The accused are said to belong to the so-called Tambovskaya-Malyshevskaya organized criminal group (OPG)—one of the most formidable Russian mafia operations that emerged in St. Petersburg, in the late 1980s (Elmundo.es, June 13, 2008). Available information on the case suggests that the potential impact of the current investigation might turn out to be much more far-reaching than initially anticipated.

  Gennady Petrov (Source: OCCRP)

The Russian mafia has had a long history in Spain. Indeed the current case against members of the Tambovskaya-Malyshevskaya OPG is a continuation of an investigation that Spanish law enforcement initiated in 2008. That year, Spanish prosecutors and the Spanish police (Civil Guard or Guardia Civil, in Spanish) carried out a special operation, code-named “Troika,” against Russian criminals residing in Spain, which resulted in the arrest of several prominent members of the Russian mafia, notably including Gennady Petrov and Alexander Malyshev. The two men were apprehended in their mansions, located in Mallorca and Malaga. After the wave of arrests, investigators named 500 Spanish bank accounts that had been used for money laundering. In the final analysis, Spanish authorities manged to seize €12 million (then worth $18.4 million) in various accounts (Lenpravda.ru, June 16, 2008).

Petrov and Malyshev built their criminal careers (and accumulated most of their financial capital) in Russia. But when their criminal enterprise started to be marginalized in the late 1990s, they were forced to flee Russia and settled in Spain, where they acquired luxurious residential properties. However, they manged to escape justice under various pretexts and eventually returned to Russia (Russiangate.com, August 16, 2017).

Spanish police has revealed that Petrov alone owns financial assets in Spain worth close to €50 million ($62 million). Additionally, Spanish prosecutors allege that Petrov and the other defendants in the current trial have accumulated their wealth from criminal activities such as assassinations, arms and drug smuggling, extortion, abductions for ransom, and the falsification of documents (Elmundo.es, February 19, 2018). In the course of the investigation, prosecutors also ascertained that, over the years, members of the Russian mafia created hundreds of companies that were allegedly selling property in different regions of Spain, primarily in Alicante, Barcelona, Malaga and Mallorca. The real purpose of these companies, however, was to launder funds collected from drug and arms smuggling as well as to “buy up valuable contacts.” After passing through Spanish banks, the laundered money subsequently went to accounts in Liechtenstein or ended up in Panama (and the other way around).

The established criminal network in Spain also developed further close ties with Russian domestic criminal circles. For example, Petrov’s son, Anton, is considered to be a member of the same criminal society. Under his umbrella, dozens of companies are currently operating in St. Petersburg, among them the large jewellery company “585.” According to a ranking published in 2016 by the magazine Delovoy Peterburg, Petrov’s son was the 26th richest Russian billionaire, with a fortune worth 37 billion rubles ($650 million) (Novyj vzglyad, August 17, 2017).

The current Spanish legal case could shed additional light on the ties between Russian political elites and Russian organized crime abroad. It is curious to note that Spanish prosecutors specifically mentioned the name Vladislav Reznik as a person allegedly tightly related to the criminal group established by Petrov and Malyshev. Reznik chairs the St. Petersburg–based insurance company Rus, is the chairman of the State Duma Committee on Finances, and is a former chairman of the Moscow-based insurance firm Rosgosstrakh (RSG). He has been wanted by Spanish law enforcement since 2016. Considered by Spanish authorities to be one of the most important figures who contributed to expanding the Russian mafia to Spain, he is accused of laundering over $62 million. Yet, until now, he has managed to escape justice (Elmundo.es, June 1, 2015).

Spanish prosecutors have also ascertained the existence of apparent connections between Reznik and Herman Gref, the current CEO and chairman of Russia’s Sberbank. The list of figures named in the Spanish authorities’ indictment also includes such well-known persons as Ilya Taber (a member of the Vyborg OPG), Anatoly Serdyukov (the former minister of defense of Russia), Viktor Zubkov (former Russian prime minister), Boris Gryzlov (former speaker of the Russian parliament) and Leonid Reiman (former minister of communications and information technologies of Russia and a financial tycoon) (Meduza.io, February 19, 2018).

According to Spanish officials, Petrov was closely related to Reznik, whose main responsibilities boiled down to the “corruption of high officials [and] obtaining of classified information in the highest Russian governmental bodies and agencies.” Case materials additionally mention 78 telephone conversations between Petrov and Nikolay Akulov, the former deputy chief of the Federal Drug Control Service of the Russian Federation, who is also wanted by Spanish prosecutors (Svoboda.org, March 31, 2016). On top of that, case materials detail the rapid career growth of Alexander Bastrykin (the head of the Investigative Committee of Russia), allegedly thanks to Petrov’s “advocacy” on his behalf (Openrussia.org, December 2, 2015). Petrov, in turn, was acting through the former top-ranking official from the Investigative Committee of Russia, Igor Sobolevsky (Newtimes.ru, November 30, 2015).

At this point it would be premature to make any far-reaching conclusions. Yet, even if a fraction of the materials presented by Spanish prosecutors turns out to be correct, this will, once again, demonstrate not only the corrupt nature of Russian political elites but also testify to the scale of ties between Russian criminal (and political) circles located in Russia and Russian mafia structures abroad. Given Western economic sanctions (actual and potential), this channel could be activated to avoid or diminish the potential impact of the United States and/or European Union’s economic sanctions directed against Russian elites.

Just in case you need more evidence, here is part ONE of the deeper dive on details. As a sample:

Gennady Petrov: Petrov (also known as Gennadios Vasilevich Petrov) is the “chief” of a criminal group having a clear pyramidal structure. Other gang members are under his ferule. They had named him “chief”, “boss”, “leader”, or “principal”. In the framework of his functions, Petrov had maintained close ties with representatives of the Russian political, economic, judicial, and police authorities, as well as with members of the international organized crime with the purpose to implement joint projects. With the assistance of lawyers, managers, and confidants, he has created in Spain a network of companies in order to cash out monetary funds obtained by the criminal group. In Russia, he maintains close ties with high-ranked officials in the political, criminal, and law enforcement spheres.

If you can stand it, here is part TWO and here is part THREE.

In summary, when Natalia Veselnitskya met with Manafort and others at Trump Tower, the Magnitsky Act was the basis of the meeting. Don’t shoot the messenger here but facts and context matter.

Included in the documents released by the Senate Judiciary Committee on Wednesday is a one-page document submitted by Paul Manafort, the former campaign chairman for Donald Trump’s 2016 effort. Manafort was serving in that role on June 9, 2016, when he joined Donald Trump Jr. and campaign adviser Jared Kushner in a meeting with a Kremlin-linked attorney who had promised incriminating information about Hillary Clinton.

Those notes, apparently taken on Manafort’s phone, are as follows.

In full:

  • Bill browder
  • Offshore — Cyprus
  • 133m shares
  • Companies
  • Not invest — loan
  • Value in Cyprus as inter
  • Illici
  • Active sponsors of RNC
  • Browder hired Joanna Glover
  • Tied into Cheney
  • Russian adoption by American families

In the absence of other context, the notes are cryptic and include words that certainly seem to wave red flags. “Offshore,” “Illici[t]” — even an apparent mention of former vice president Richard B. Cheney.

Iran to Hit Infrastructure with Cyber Attack

Primer: (Reuters) – Iran has built a factory that can produce rotors for up to 60 centrifuges a day, the head of its atomic agency said on Wednesday, upping the stakes in a confrontation with Washington over the Islamic Republic’s nuclear work.

Under the terms of the 2015 agreement, which was also signed by Russia, China, Britain, France and Germany, Iran agreed to curb its nuclear program in exchange for sanctions relief.

The other signatories have been scrambling to save the accord, arguing it offers the best way to stop Iran developing a nuclear bomb.

The Aspen Security Forum Releases 2017 Agenda - Aspen ...

*** At the Aspen Security Summit on Iran

In part:

ASPEN, Colo. — Iranian hackers have laid the groundwork to carry out extensive cyberattacks on U.S. and European infrastructure and private companies, and the U.S. is warning allies, hardening its defenses and weighing a counterattack, say multiple senior U.S. officials.

Despite Iran having positioned cyber weapons to carry out attacks, there is no suggestion an offensive operation is imminent, according to the officials, who requested anonymity in order to speak.

Cyber threats have been a major theme of the 2018 Aspen Security Forum, with administration officials from Director of National Intelligence Dan Coats, FBI Director Chris Wray, and Deputy Attorney General Rod Rosenstein all warning of the pervasive danger from Russia, China, Iran, and North Korea.

In Aspen Thursday, DNI Coats said that Russia was a more active cyber foe than Iran or China — “by far” the most aggressive, he said.

While Russia may be the most aggressive, the U.S. officials said Iran is making preparations that would enable denial-of-service attacks against thousands of electric grids, water plants, and health care and technology companies in the U.S., Germany, the U.K. and other countries in Europe and the Middle East.

“Iran has a penchant for using such tools against the West,” said Ben Taleblu. “The cyber domain permits the Islamic Republic to engage in graduated escalation, a hallmark of Iranian security policy.”

U.S. officials have alerted America’s allies in Europe and the Middle East to the potential Iranian threat and have begun preparing a menu of possible responses, according to both current and former US officials. It’s unclear if the options include a preemptive cyberattack to deter Iran from launching one.

Senior U.S. officials remain divided over the use of a preemptive cyberattack. More here.

Perhaps it is almost important to be reminded about the bomb plot last month in Paris. For a full summary of events at the #FreeIran event in Paris, go here.

Israel’s Mossad spy agency thwarted a terror attack in a Paris suburb last month, giving authorities in France, Germany, and Belgium crucial intelligence that led to arrests of a cell headed by an Iranian diplomat, Hebrew media reported Thursday.

The cell, headed by an Iranian diplomat at the Austrian embassy in Vienna, also consisted of  two Belgian nationals and an alleged accomplice in France. They planned to bomb a June 30 conference organized by an Iranian dissident group, the People’s Mujahedeen of Iran.

The operation included tracking the suspects and eavesdropping on them,  Hadashot said.

The Belgian nationals, a husband and wife identified as Amir S. and Nasimeh N., were charged earlier this month with their role in the plot.

The couple, described by Belgian prosecutors as being “of Iranian origin,” carried 500 grams (about a pound) of the volatile explosive TATP along with a detonation device when an elite police squad stopped them in a residential district of Brussels.

The arrests came days before Iranian Foreign Minister Mohammed Javad Zarif met with European nations to try to shore up the 2015 nuclear accord, after US President Donald Trump walked away from the deal.

Israeli Prime Minister Benjamin Netanyahu alluded to the operation ahead of the meeting.

“There is a meeting this week by the P4 without the United States…” and “the P4 invited Iran’s President Rouhani to attend,” Netanyahu said derisively at an event to mark US Independence Day. More here.

 

Elections’ Voter Registration System and the Russian Investor

Remember the outrage when sites all over the internet published items that Soros owned the voting machines? Remember that same outrage when Soros invested heavily in the State’s secretaries that were responsible for the respective elections process?

Remember the outrage that a Russian investor was able to buy American uranium in a deal concocted by Hillary? We learned then about the Committee for United States Foreign Investment.

Remember the outrage when Obama deferred the ‘red-line’ chemical weapons removal in Syria to Moscow that killed thousands? Anyone remember the anger when Russia shot down MH17, a civilian airliner, killing everyone on board?

Remember that we have lost regard for the top ranks of the FBI due to the Russian investigation and the Hillary investigation?

Remember

Remember the horror and voting rigging reported across various states in the recent elections?

Our votes are the most sacrosanct privilege Americans have. Okay so how about the very under reported matter in Maryland?

See, it was not until AFTER the Justice Department announced the indictment of 12 Russian military intelligence officers for computer hacking that Maryland officials reached out to Rod Rosenstein. FBI officials in the Maryland office held a briefing with the Maryland officials and did not want to make the information public….that is due to a wider investigation on the matter. What matter is that?

Well….

In part:

Four FBI agents informed state officials Thursday that a vendor Maryland has contracted with — ByteGrid LLC — to host data for statewide elections has ties to a Russian oligarch, Miller and Busch said.

Vladimir Potanin Vladimir Potanin

Potanin acquired his wealth notably through the controversial loans-for-shares program in Russia in the early to mid-1990s.

He is one of the wealthiest men in Russia, with an estimated net worth of $15.9 billion, ranking 83rd on the 2018 Forbes The World’s Billionaires list, and 6th in Russia. His long-term business partner was Mikhail Prokhorov until they decided to split in 2007. Subsequently, they put their mutual assets in a holding company, Folletina Trading, until their asset division was agreed upon.

In January 2018, Potanin appeared on the US Treasury’s “Putin list” of 210 individuals closely associated with Russian president Vladimir Putin.

ByteGrid LLC owns the servers that hold the data for voter registration, candidacy, election management, and election night results, state elections officials said. An ownership stake in the company was purchased by AltPoint Capital Partners, whose largest investor is a Russian oligarch named Vladimir Potanin, the election officials said.

Busch said that Potanin is “very close” to Russian Pesident Vladimir Putin and that Altpoint’s managing partner is Gerald T. Banks, a Russian millionaire who changed his name from Guerman Aliev.

But Busch said the state has no evidence that Potanin or Banks had done anything untoward.

“We don’t have any idea whether they meddled in any elections at all,” Busch said.

Attempts to reach the companies were unsuccessful.

The Maryland officials also said they had no indication the Russian-linked firm had anything to do with the problems that arose shortly before June’s primary election in which more than 80,000 voters’ change of address and party affiliation requests were never forwarded from the Motor Vehicle Administration to election officials.

The Maryland news came hours after the Department of Justice indicted 12 Russian intelligence officers, charging that they hacked the computer networks of Hillary Clinton’s 2016 presidential campaign, the Democratic National Committee and the Democratic Congressional Campaign Committee.The 11-count indictment alleges that the Russian agents infiltrated the networks, implanting malicious computer code and stealing documents on field operations, opposition research and campaign analytics as a way of interfering with the election.

The charges include conspiracy to commit an offense against the U.S., aggravated identity theft and money laundering.

According to the indictment, the Russians posted stolen documents online and worked with an organization — unnamed but believed to be WikiLeaks — to spread them further, and take advantage of continuing tensions between supporters of Clinton and primary opponent Bernie Sanders.

The federal indictment charging 12 Russian includes an allegation that a Twitter account, @BaltimoreIsWhr, was set up to invite people to join a “flash mob” and to post images using the hashtag “#BlacksAgainstHillary.”

It is the latest revelation of how social media were used locally and nationally in an attempt to influence the election. Cyber security analysts in September told The Baltimore Sun that a Facebook ad that referred to the Black Lives Matter movement and targeted Baltimore users in the months following the 2015 riots was likely part of a broader effort by Russia to sow discontent and deepen racial tension.

In response to such ads, the General Assembly in April passed a bill requiring social media platforms and websites with significant traffic to track all political ads and record which users are being targeted. In May, Hogan expressed reservations that the law could be found unconstitutional and allowed the bill to become law without his signature.

The @BaltimoreIsWhr account has been suspended.  Read more here.

Election officials in Maryland along with Governor Hogan have asked the Department of Homeland Security for technical assistance to evaluate the network used by the State elections board. ByteGrid, interesting name, was bought by the Russian investor in 2015 without the knowledge of Maryland officials. ByteGrid hosts the entire state system including registration, online ballot delivery systems and unofficial election night results.

Oh yeah, one last item, Maryland was one of the states that had very suspicious online activity in the 2016 election according to DHS and the FBI. That suspicious activity was for online registration and in the ballot request system.

IT Solution Providers

According to the ByteGrid website, they offer: With ByteGrid’s Compliant Hosting Solutions you get security, compliance and control over your business-critical data. Our CISA and CRISC certified experts have you covered. Industry sectors include: Life Sciences, Health IT, Financial and Government.

Russia’s Operations Against the US Explained at Aspen Security Forum

Associated Press

Published on Jul 18, 2018
(19 Jul 2018) FBI Director Christopher Wray says Russia is trying to influence opinions and sow discord and divisiveness in the U.S. Wray spoke at the opening event of the Aspen Security Forum in Colorado. (July 19)

Meanwhile, there has been substantial theories and responses due to Special Counsel Robert Mueller’s indictment of the 13 Russians from February. 

Add in the second round of 12 Russians that SC Mueller indicted just this month. So we are currently at 25. Now, consider Ms. Maria Butina who was arrested last Sunday.

Butina, 29, was indicted by a grand jury Tuesday on charges she served in the United States as an agent of the Russian government without notifying the Justice Department. In the court filing Wednesday, prosecutors said Butina maintained constant contact with Russian intelligence officials and “loyally” carried out a years-long conspiracy to advance the Kremlin’s interests. They described her plan as “calculated, patient” and directed by a Russian official believed to be Alexander Torshin, who was sanctioned by the Treasury Department earlier this year.

Perhaps, one should consider that Mueller is for sure simply trying to clean up a Russian mess left behind by the Obama administration. All of this happened during his administration. For an exceptional summary on the matter of Butina and what FBi Director is referring to at the Aspen Security Forum, click this link.

Security agency professionals are in attendance at the Aspen Security Forum to include DHS Secretary Kirstjen Nielsen, Daniel Coats, Director of National lntelligence, Rod Rosenstein, Deputy Attorney General and Christopher Wray, Director of the FBl.

Further, there are real concerns that the Federal and State governments are not doing enough to protect whole election architecture and systems. That is a false assertion by the Democrats as there have been hearings on the Hill explaining the work/collaboration between DHS and individual states. Admittedly, there are issues at the State level where databases, computers, voter rolls and more all take place. The bell first rang on state vulnerabilities began in the 2016 general election, where the cyber professionals at the FBl were placed in states known to be under brute force cyber attacks. State officials were warned then and provided advice on how to harden their respective systems going forward.

Those discussions and activities continue today including at the Aspen Security Forum.  A specific session is dedicated to this issue as noted:

Defending Democratic Institutions: Election 2018 and Beyond
Though the motivation and the effects are disputed, nearly everyone agrees that Russia interfered in the 2016 presidential election, and security experts agree that it is already interfering in this year’s mid-terms. Though efforts are underway to stop them, what more can be done to put an end to Russia’s interference in our elections and democratic institutions?

Monika Bickert, Head of Product Policy and Counterterrorism, Facebook
Tom Burt, Corporate Vice President for Customer Security and Trust , Microsoft
Michael Chertoff, Former Secretary of Homeland Security
Jeanette Manfra, Assistant Secretary of Homeland Security for Cybersecurity and
Communications
Kim Wyman, Secretary of State, Washington State
Moderator: Michael Isikoff, Chief Investigative Correspondent, Yahoo News

 

Meanwhile, Senator Rubio introduced legislation last year to further add sanctions on Russia due to Russian interference. Due to the most recent political scandals, some noted above, Rubio’s bill is getting renewed attention and support in Congress.

Image result for rubio deter act photo

Briefly from the Miami Herald:

Rubio and Van Hollen’s bill, called the Defending Elections from Threats by Establishing Redlines (DETER) Act, is the first bill since the 2016 presidential election that sets specific punishments for the Russian government and other countries that interfere in U.S. political campaigns.

“Congress has already taken various steps when it comes to Russia and its interference in 2016, this will just be one moving forward that hopefully would deter future attacks, which I believe is the real threat here ultimately,” Rubio said on Tuesday. “It’s not what happened, but what could happen in the future. Hopefully we’ll get to a critical mass and momentum that we can get going on it and get it passed.”

Rubio’s bill, if passed, codifies specific penalties for the Russians that must be implemented within 10 days if the Director of National Intelligence determines that interference took place.

The penalties include “sanctions on major sectors of the Russian economy, including finance, energy, defense, and metals and mining” and blacklisting every senior Russian political figure or oligarch identified in the Russian sanctions bill that became law in 2017 over the initial objections of Trump after a supermajority in Congress approved it.

The bill lays out specific acts by foreign governments that constitute election interference. Foreign governments are forbidden from purchasing advertisements to influence elections, using social and traditional media to spread “significant amounts” of false information, hacking election or campaign infrastructure such as voter registration databases and campaign emails, and blocking access to elections infrastructure such as websites that provide information on polling locations. Read more here.

 

Pork Still Lives in the Swamp

Primer:

On January 17, 2018, Rep. Rooney stated, “you can’t do jack s— for your
constituents” without earmarks. Perhaps Rep. Rooney’s successor will find a
way to do his or her job without resorting to the most wasteful and corrupt
practice in congressional history.
$11,000,000 for the aquatic plant control program, an increase of 22.2
percent from the $9 million earmarked in FY 2017, and the largest amount
ever earmarked for this program.
Since 1994, there have been 24 earmarks worth a total of $58.1 million
for aquatic plant control projects, including three by Sen. Chuck Schumer
(D-N.Y.) and one each by Sen. Patrick Leahy (D-Vt.) and then-Sen. Jeff
Sessions (R-Ala.).
Image result for 2018 congressional pig book

Watchdog exposes $14.7B of pork-barrel spending, including ‘brown tree snake eradication’ project

FNC: The federal government is spending millions to save Pacific Coast salmon. And it’s doling out more than $600,000 to kill brown tree snakes in Guam.

A watchdog group, Citizens Against Government Waste, on Wednesday released its annual Congressional Pig Book of what it considers the most egregious examples of pork-barrel spending in Congress, drawn this time from fiscal year 2018 appropriations bills.

According to the group, earmarks in 2018 totaled $14.7 billion, an increase of 116.2 percent from $6.8 billion in 2017.

Among the most blatant examples of pork flagged by the group:

— $65 million for “Pacific coastal salmon recovery.” According to its website, the Pacific Coastal Salmon Recovery Fund “was established by Congress in 2000 to reverse the declines of Pacific salmon and steelhead, supporting conservation efforts in California, Oregon, Washington, Idaho and Alaska.”

$11 million for an “aquatic plant control program.” The group said that since 1994, there have been 24 earmarks worth $58.1 million for aquatic plant control projects.

— $663,000 for a “brown tree snake eradication program.” According to Citizens Against Government Waste, the snakes are “native to northern Australia, Indonesia and many islands in Melanesia, and have caused damage to the ecosystem of Guam, where they were likely introduced by the U.S. military following World War II.”

— $10 million for “high-energy cost grants” within the Rural Utilities Service.

– $2.8 million for the National Capital Arts and Cultural Affairs grant program, which funds arts and cultural institutions in Washington, D.C.

A number of Republican lawmakers attended Wednesday’s press conference on the list, including Sens. Jeff Flake, Ted Cruz and Joni Ernst, of Arizona, Texas and Iowa, respectively.

To be considered for listing in the group’s annual book, an earmark must meet at least one criterion, including whether it was requested by only one chamber of Congress; if it was not specifically authorized; if it was not competitively awarded; if it was not requested by the president; if it greatly exceeds the president’s budget request or the previous year’s funding; if it was not the subject of congressional hearings; or if it serves only a local or special interest.