WSJ: President Trump’s former national security adviser, Mike Flynn, was paid tens of thousands of dollars by Russian companies shortly before he became a formal adviser to the then-candidate, according to documents obtained by a congressional oversight committee that revealed business interests that hadn’t been previously known.
Mr. Flynn was paid $11,250 each by a Russian air cargo company that had been suspended as a vendor to the United Nations following a corruption scandal, and by a Russian cybersecurity company that was then trying to expand its business with the U.S. government, according to the documents, which were reviewed by The Wall Street Journal.
The speaking engagements took place in the summer and fall of 2015, a year after Mr. Flynn had been fired as the director of the Defense Intelligence Agency and while he continued to maintain a top-secret level security clearance.
In December 2015, the Kremlin-backed news organization RT also paid Mr. Flynn $33,750 to speak about U.S. foreign policy and intelligence matters at a conference in Moscow.
In February 2016, Mr. Flynn became an official adviser to the presidential campaign of Donald Trump, who at the time was taking a softer stance toward Moscow than his Republican rivals.
Mike Flynn resigned Monday as Trump’s national security adviser. He came under fire for making conflicting statements on whether he discussed sanctions with a Russian official before the president’s inauguration. Photo: Reuters (Originally published Feb., 14, 2017)
Price Floyd, a spokesman for Mr. Flynn, said he reported his RT appearance to the Defense Intelligence Agency, as required. Mr. Floyd didn’t immediately respond to questions about the other fees.
The new details about Mr. Flynn’s speaking engagements are contained in emails and documents provided to congress by his speaker’s bureau, Leading Authorities, and shed light on a continuing inquiry into Mr. Flynn’s and other Trump associates’ ties to Moscow.
On Monday, FBI Director James Comey and other current and former U.S. officials are scheduled to testify about possible Russian interference in the 2016 presidential election before a congressional committee that is also probing Trump associates’ ties to Russia.
Attorney General Jeff Sessions has recused himself from any investigation related to the 2016 presidential campaign after he failed to disclose the extent of his own contacts with the Russian ambassador to the U.S., Sergei Kislyak.
Mr. Flynn resigned under pressure in February after he failed to tell White House officials about phone calls he had with Mr. Kislyak, in which the two discussed the potential lifting of U.S. sanctions on Russia, according to U.S. officials familiar with the contents of the conversations.
While the documents from Mr. Flynn’s speaker’s bureau provide the most detail to date on his business dealings with Russia, they don’t show what other work he may have been doing outside his role as a paid speaker. Mr. Flynn commanded high fees for speaking on the state of global security and talking about his role as one of the most senior intelligence officials in the Obama administration.
Mr. Flynn was removed from his post as DIA chief after complaints of poor management and organization, not because of a policy dispute, according to people who worked with him at the time.
Last week, Mr. Flynn filed papers with the Justice Department disclosing that his firm was paid $530,000 to work in the U.S. on behalf of the interests of the Turkish government. Mr. Flynn had performed those services while he was advising Mr. Trump, then a presidential candidate.
Little additional information has become public about other clients the former military intelligence chief’s private consulting firm, Flynn Intel Group, may have had before the retired general’s appointment as national security adviser.
In a letter sent Thursday by Rep. Elijah Cummings (D., Md.) to Mr. Trump, Defense Secretary Jim Mattis and Mr. Comey, Mr. Cummings wrote that by taking the RT speaking fee, Mr. Flynn had “accepted funds from an instrument of the Russian government.”
Mr. Cummings, the top Democrat on the House Oversight and Government Reform Committee, pointed to a Central Intelligence Agency analysis written in 2012, while Mr. Flynn was running the DIA, that said RT was “created and financed by the Russian government,” which spent hundreds of millions of dollars a year to help the network create and disseminate programming that is broadcast in English around the world, including in the U.S.
Mr. Cummings said that by taking the fee, Mr. Flynn had violated the emoluments clause of the Constitution, which prohibits people in public office from accepting money from foreign governments. Some analysts have said this prohibition may apply to retired officers as well, because they could be recalled to service.
“I cannot recall anytime in our nation’s history when the president selected as his national security adviser someone who violated the Constitution by accepting tens of thousands of dollars from an agent of a global adversary that attacked our democracy,” Mr. Cummings wrote.
Though Mr. Flynn’s RT appearance had been reported, the documents provided new details about how he came to speak at the RT conference in December 2015, an event marking the network’s 10th anniversary.
While Mr. Flynn’s speakers’ bureau acted as a middleman, email communications indicate that RT sought to orchestrate the event and the content of his remarks.
“Using your expertise as an intelligence professional, we’d like you to talk about the decision-making process in the White House—and the role of the intelligence community in it,” an official from RT TV-Russia wrote in an email on Nov. 20, 2015, the month before Mr. Flynn’s appearance in Moscow.
In an earlier email in October, an RT official described the event as a networking opportunity for Mr. Flynn and an occasion to meet “political influencers from Russia and around the world.” At a gala dinner during the event, Mr. Flynn sat at the head table next to Russian President Vladimir Putin.
“It was something of a surprise to see General Flynn there,” said Ray McGovern, a former CIA officer and political activist who also attended.
Before the dinner, Mr. Flynn gave an interview on stage with an RT correspondent and chastised the Obama administration for objecting to Russia’s intervention in Syria.
“The United States can’t sit there and say, ‘Russia, you’re bad,’” Mr. Flynn said, according to a video of the interview, noting that both countries had shared global interests and were “in a marriage, whether we like it or not.” The countries should “stop acting like two bullies in a playground” and “quit acting immature with each other,” Mr. Flynn said.
Mr. Flynn attended with his son, Michael Flynn Jr., who worked as the chief of staff to his consulting firm. Records show that RT paid for travel and lodging expenses for both Flynns, including business-class airfare, accommodations at Moscow’s Hotel Metropol, and meals and incidental expenses while in Russia.
Mr. Putin entered the dinner late with two body guards, Mr. McGovern said. He waved and took his seat at the table, where he remained for about 20 minutes. After a fifteen-minute speech, Mr. Putin sat down, listened to a performance by the Russian Army chorus and then left, Mr. McGovern said.
It isn’t clear what Mr. Flynn said during speeches to the other two companies, computer security firm Kaspersky and Russian airliner Volga-Dnepr.
Mr. Flynn appears to have to spoken to Kaspersky at a conference the company sponsored in Washington, D.C., in October 2015. It wasn’t clear where Mr. Flynn spoke to Volga-Dnepr, but records from his speaker’s bureau show the engagement took place on August 19, 2015.
Kaspersky sponsors a number of events world-wide and in recent years has been trying to expand its business in the U.S., looking to supply government clients with antivirus products for industrial control systems.
Kaspersky said in a statement that its U.S. subsidiary paid Mr. Flynn a speaker fee for remarks at the 2015 Government Cyber Security Forum in Washington, D.C.
“As a private company, Kaspersky Lab has no ties to any government, but the company is proud to collaborate with the authorities of many countries, as well as international law enforcement agencies in the fight against cybercrime,” the company said.
Volga-Dnepr didn’t respond to a request for comment. The Russian cargo air firm is known for operating one of the largest military transport aircraft in the world, the An-124, which the U.S. has contracted in the past to lift military equipment, including Russian helicopters, into Afghanistan. The plane has a larger capacity than the U.S. military’s biggest cargo plane.
***
In part from Associated Press: Flynn’s sparkling military resume had included key assignments at home and abroad, and high praise from superiors.
The son of an Army veteran of World War II and the Korean war, Flynn was commissioned as a second lieutenant in May 1981 after graduating from the University of Rhode Island. He started in intelligence, eventually commanding military intelligence units at the battalion and then brigade level. In the early years of the Iraq war, he was intelligence chief for Joint Special Operations Command, the organization in charge of secret commando units like SEAL Team 6 and Delta Force. He then led intelligence efforts for all U.S. military operations in the Middle East and then took up the top intelligence post on the Joint Staff in the Pentagon.
Ian McCulloh, a Johns Hopkins data science specialist, became an admirer of Flynn while working as an Army lieutenant colonel in Afghanistan in 2009. At the time, Flynn ran intelligence for the U.S.-led international coalition in Kabul and was pushing for more creative approaches to targeting Taliban networks, including use of data mining and social network analysis, according to McCulloh.
“He was pushing for us to think out of the box and try to leverage technology better and innovate,” McCulloh said, crediting Flynn for improving the effectiveness of U.S. targeting. “A lot of people didn’t like it because it was different.”
It was typical of the determined, though divisive, approach Flynn would adopt at the Defense Intelligence Agency, which provides military intelligence to commanders and defense policymakers. There, he quickly acquired a reputation as a disruptive force. While some applauded Flynn with forcing a tradition-bound bureaucracy to abandon old habits and seek out new, more effective ways of collecting and analyzing intelligence useful in the fight against extremist groups, others saw his efforts as erratic and his style as prone to grandstanding.
In the spring of 2014, after less than two years on the job, he was told to pack his bags.
According to Flynn’s telling, it was his no-nonsense approach to fighting Islamic extremist groups that caused the rift.
A former senior Obama administration official who was consulted during the deliberations disputed that account. Flynn was relieved of his post for insubordination after failing to follow guidance from superiors, including James Clapper, Obama’s director of national intelligence, said the official, who asked for anonymity to discuss personnel matters.
Plunged into civilian life for the first time in 33 years, Flynn moved quickly to capitalize on his military and intelligence world connections and experience. He did so in an unorthodox way.
“I didn’t walk out like a lot of guys and go to big jobs in Northrup Grumman or Booz Allen or some of these other big companies,” Flynn told Foreign Policy magazine in 2015.
Instead, he opened his own consulting firm, Flynn Intelligence Group, in Alexandria, Va. He brought in his son, Michael G. Flynn as a top aide, and began assembling a crew of former armed forces veterans with expertise in cyber, logistics and surveillance, and sought out ties with lesser-known figures and companies trying to expand their profiles as contractors in the military and intelligence spheres.
One “team” member listed on the firm’s site was James Woolsey, President Bill Clinton’s former CIA director. Woolsey briefly joined Flynn on Trump’s transition team as a senior adviser, but quit in January. Another was lobbyist Robert Kelley.
Kelley proved a central player in the Flynn Group’s decision to help a Turkish businessman tied to Turkey’s government. At the same time that Flynn was advising Trump on national security matters, Kelley was lobbying legislators on behalf of businessman Ekim Alptekin’s firm between mid-September and December last year, lobbying documents show.
It was an odd match. Flynn has stirred controversy with dire warnings about Islam, calling it a “political ideology” that “definitely hides behind being a religion” and accusing Obama of preventing the U.S. from “discrediting” radical Islam. But his alarms apparently didn’t extend to Turkish President Recep Tayyip Erdogan’s government as it cracked down on dissent and jailed thousands of opponents after a failed coup last summer. Erdogan’s power base is among Turkey’s conservative Muslim voters and many affected by his crackdown are secularists. More here.
Author Archives: Denise Simon
America First – A Budget Blueprint to Make America Great Again
Read the proposed budget here from the White House.
CrayNews
Reuters: President Donald Trump will ask the U.S. Congress for dramatic cuts to many federal programs as he seeks to bulk up defense spending, start building a wall on the border with Mexico and spend more money deporting illegal immigrants.
In a federal budget proposal with many losers, the Environmental Protection Agency and State Department stand out as targets for the biggest spending reductions. Funding would disappear altogether for 19 independent bodies that count on federal money for public broadcasting, the arts and regional issues from Alaska to Appalachia.
BusinessInsider
Trump’s budget outline is a bare-bones plan covering just “discretionary” spending for the 2018 fiscal year starting on Oct. 1. It is the first volley in what is expected to be an intense battle over spending in coming months in Congress, which holds the federal purse strings and seldom approves presidents’ budget plans.
Congress, controlled by Trump’s fellow Republicans, may reject some or many of his proposed cuts. Some of the proposed changes, which Democrats will broadly oppose, have been targeted for decades by conservative Republicans.
In addition to the fiscal year 2018 request, a copy of a supplemental budget for fiscal year 2017 obtained by Reuters shows the administration plans to ask for $30 billion for the Department of Defense and $3 billion for the Department of Homeland Security.
The funds would be allocated this year to cover procurement of military technology such as F-35 fighter aircraft and drone systems, begin construction on the U.S.-Mexico border wall and increase detention space for migrants. Congress likely will consider the supplemental request by April 28, when the current regular funding expires.
Moderate Republicans already have expressed unease with potential cuts to popular domestic programs such as home-heating subsidies, clean-water projects and job training.
OPEN FOR DISCUSSION
Trump is willing to discuss priorities, said White House budget director Mick Mulvaney, a former South Carolina congressman who made a name for himself as a spending hawk before Trump plucked him for his Cabinet.
“The president wants to spend more money on defense, more money securing the border, more money enforcing the laws, and more money on school choice, without adding to the deficit,” Mulvaney told a small group of reporters during a preview on Wednesday.
“If they have a different way to accomplish that, we are more than interested in talking to them,” Mulvaney said.
Democrats criticized the proposal as lacking in detail and said it would be devastating to American families.
“President Trump is not making anyone more secure with a budget that hollows out our economy and endangers working families,” said House of Representatives Democratic leader Nancy Pelosi. “Throwing billions at defense while ransacking America’s investments in jobs, education, clean energy and lifesaving medical research will leave our nation weakened.”
Trump wants to spend $54 billion more on defense, put a down payment on his border wall, and breathe life into a few other campaign promises. His initial budget outline does not incorporate his promise to pour $1 trillion into roads, bridges, airports and other infrastructure projects. The White House has said the infrastructure plan is still to come.
The defense increases are matched by cuts to other programs so as to not increase the $488 billion federal deficit. Mulvaney acknowledged the proposal would likely result in significant cuts to the federal workforce.
“You can’t drain the swamp and leave all the people in it,” Mulvaney said.
The Department of Homeland Security would get a 6.8 percent increase, with more money for extra staff needed to catch, detain and deport illegal immigrants.
WALL MONEY
Trump wants Congress to shell out $1.5 billion for the border wall with Mexico in the current fiscal year – enough for pilot projects to determine the best way to build it – and a further $2.6 billion in fiscal 2018, Mulvaney said.
The estimate of the full cost of the wall will be included in the full budget, expected in mid-May, which will project spending and revenues over 10 years.
Trump has vowed Mexico will pay for the border wall, which the Mexican government has flatly said it will not do. The White House has said recently that funding would be kick-started in the United States.
The voluminous budget document will include economic forecasts and Trump’s views on “mandatory entitlements” – big-ticket programs like Social Security and Medicare, which Trump vowed to protect on the campaign trail.
Trump asked Congress to slash the EPA by $2.6 billion or more than 31 percent, and the State Department by more than 28 percent or $10.9 billion.
Mulvaney said the “core functions” of those agencies would be preserved. Hit hard would be foreign aid, grants to multilateral development agencies like the World Bank and climate change programs at the United Nations.
Trump wants to get rid of more than 50 EPA programs, end funding for former Democratic President Barack Obama’s signature Clean Power Plan aimed at reducing carbon dioxide emissions, and cut renewable energy research programs at the Energy Department.
Regional programs to clean up the Great Lakes and Chesapeake Bay would be sent to the chopping block.
Community development grants at the Housing Department – around since 1974 – were cut in Trump’s budget, along with more than 20 Education Department programs, including some funding program for before- and after- school programs.
Anti-poverty grants and a program that helps poor people pay their energy bills would be slashed, as well as a Labor Department program that helps low-income seniors find work.
Trump’s rural base did not escape cuts. The White House proposed a 21 percent reduction to the Agriculture Department, cutting loans and grants for wastewater, reducing staff in county offices and ending a popular program that helps U.S. farmers donate crops for overseas food aid.
$2900.00 per Acre or Condemned, Border Wall Order
Primer: This notice did not come from the new Trump administration, it was generated by the Loretta Lynch Department of Justice on behalf of the Department of Homeland Security. This is known as a ‘Declaration of Taking Notice.
The nearly 2,000-mile southern border is composed of federal, state, tribal and private lands. There are 632 miles of federal or tribal land — 33 percent — and the other 67 percent, most of which is in Texas, is private or state-owned, according to the Government Accountability Office (GAO). The Washington Post points out that the president would need Congress to pass a bill to acquire the tribal lands for his wall. More here.
Texans Receive First Notices of Land Condemnation for Trump’s Border Wall
The government offered $2,900 for 1.2 acres near the Rio Grande. If Flores chooses not to accept the offer, the land could be seized through eminent domain.
Observer: The week before Donald Trump’s inauguration, Yvette Salinas received a letter she had been dreading for years: legal notice that the U.S. Department of Homeland Security (DHS) wants to build a border wall on her family’s land in Los Ebanos. The 21-page document, entitled a “Declaration of Taking,” is addressed to her ailing mother, Maria Flores, who owns the property with her siblings. The letter offers Flores $2,900 for 1.2 acres near the Rio Grande. If she chooses not to accept the offer, the land could be seized through eminent domain. “It’s scary when you read it,” Salinas says. “You feel like you have to sign.”
Jen Reel The ribbon left by the DHS in 2008 to note where the border wall would enter on Aleida Flores’ land still remains.
The 16-acre property has been in the family for so long that none of them can remember the year it was acquired. Salinas only knows they’ve had it for five generations. Her uncle runs a few head of cattle on the property, which lies not far from Los Ebanos’ most famous attraction, a hand-drawn ferry that shuttles cars and their passengers across the river to Mexico.
This is not the first time the federal government has wanted to seize the land for a border wall. In the wake of the Secure Fence Act of 2006, the Bush administration put up 110 miles of border fencing, much of it on private land in Texas. In 2008, Salinas’ family received a condemnation notice offering them the same low, low price of $2,900. Others in Los Ebanos were mailed similar notices.
***
But nature and time were on their side. Los Ebanos is squeezed into a bend in the Rio Grande, and lies entirely in the river’s floodplain. A treaty between the United States and Mexico forbids building any structures in the floodplain that could push floodwaters into surrounding communities.
***
Jen Reel The map given to Flores in 2008 by the DHS showing their proposed fence acquisition tract on Flores’ land.
Salinas’ family held off on signing the condemnation letter. As time passed, building a wall in Los Ebanos seemed less likely, because of the treaty and because the Obama administration made wall-building less of a priority. In the meantime, Aleida Garcia, Salinas’ cousin, said the government has increased security in the area by adding more surveillance, which she prefers to Trump’s proposed 30-foot wall. “Even if they build a wall, people will still come,” said Garcia. “What’s helped us tremendously and is less expensive is the technology — the aerostat balloons, the ground sensors and even boots on the ground.”
But Los Ebanos appears to be a prime target for the Trump administration. The surveying and planning work has already been done, and the Secure Fence Act authorizes more border fencing to be built. And in 2012, the United States half of the International Boundary and Water Commission, a binational organization tasked with managing the U.S.-Mexico water treaty, capitulated to lobbying by DHS and agreed to a wall in the floodplain.
Salinas says her family doesn’t want to give up their land, and they are consulting with lawyers to decide what to do next. But fighting the federal government could mean spending years in court. If they lose, DHS could take their land. Salinas, who is 29, says it makes her sad that the family’s legacy could be divided by an ugly wall that will cause problems for Los Ebanos. “We don’t want this wall — the town is pretty much united on that,” says Salinas. “But we don’t want to get sued by the U.S. government either.”
Russian FSB Officers Charged in Yahoo Hack and More
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.
“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:
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- Dmitry Aleksandrovich Dokuchaev, 33, was an officer in the FSB Center for Information Security, aka “Center 18.” Dokuchaev was a Russian national and resident.
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- 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.
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- 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.
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- 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:
|
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)
Topic:
Counterintelligence and Export Control
Updated March 15, 2017
DNC: Tom Perez/Keith Ellison, DemRulz
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.
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