Shake Your Head at This DoJ Case, Netcracker

Ever wonder where the NSA was on this? Ever wonder where the background check was for Netcracker as a bona fide government contractor? More fleecing that several people in the decision chain approved this.

USDOJ: Netcracker Technology Corp. and Computer Sciences Corp. Agree to Settle Civil False Claims Act Allegations  (The spin in this statement is in full testimony of how things operate in the Federal government, meanwhile the risk, well frankly the treasonous decision is epic.

 

Pentagon Farmed Out Its Coding to Russia

By Patrick Malone, Center for Public Integrity

The Pentagon was tipped off in 2011 by a longtime Army contractor that Russian computer programmers were helping to write computer software for sensitive U.S. military communications systems, setting in motion a four-year federal investigation that ended this week with a multimillion-dollar fine against two firms involved in the work.

The contractor, John C. Kingsley, said in court documents filed in the case that he discovered the Russians’ role after he was appointed to run one of the firms in 2010. He said the software they wrote had made it possible for the Pentagon’s communications systems to be infected with viruses.

Greed drove the contractor to employ the Russian programmers, he said in his March 2011 complaint, which was sealed until late last week. He said they worked for one-third the rate that American programmers with the requisite security clearances could command. His accusations were denied by the firms that did the programming work.

“On at least one occasion, numerous viruses were loaded onto the DISA [Defense Information Systems Agency] network as a result of code written by the Russian programmers and installed on servers in the DISA secure system,” Kingsley said in his complaint, filed under the federal False Claims Act in U.S. District Court in Washington, D.C., on March 18, 2011.

Asked to confirm that the Russians’ involvement in the software work led to the presence of viruses in the U.S. military’s communications systems, Alana Johnson, a spokeswoman for the Defense Information Systems Agency, declined to answer on the grounds that doing so could compromise the agency’s “national security posture.”

“It’s something that we take very seriously,” Johnson said in a telephone interview on Tuesday. “The Department of Defense’s posture on cybersecurity ultimately affects national security.”

Kingsley first told a Defense Information Systems Agency official on Jan. 10, 2011, that Russians had been doing computer programming for Massachusetts-based NetCracker Technology Corporation under a federal contract, through an arrangement that corporate officials referred to as its “Back Office,” he said in his complaint. He said the work had been done in Moscow and elsewhere in Russia.

The DISA official confirmed that the practice of outsourcing the work to employees in Russia violated both the company’s contract and federal regulations that mandate only U.S. citizens with approved security clearances work on classified systems, Kingsley’s complaint said.

On Monday, NetCracker and the much larger Virginia-based Computer Sciences Corporation—which had subcontracted the work—agreed to pay a combined $12.75 million in civil penalties to close a four-year-long Justice Department investigation into the security breach. They each denied Kingsley’s accusations in settlement documents filed with the court.

The agency’s inspector general, Col. Bill Eger, who had investigated Kingsley’s allegations, said the case was a good example of how his office combats fraud. In a separate statement released Monday, Channing D. Phillips, the U.S. Attorney for the District of Columbia, said that “in addition to holding these two companies accountable for their contracting obligations, this settlement shows that the U.S. Attorney’s Office will take appropriate measures necessary to ensure the integrity of government communications systems.”

The $22 million contract the companies were working on dates from 2008, when the Pentagon first asked Computer Sciences Corporation to fortify and administer the computer networks of the Defense Information Systems Agency. The agency supports battlefield operations by running communication systems that enable soldiers, officers, and coalition partners to communicate in secret.

Computer Sciences Corporation collected a total of $1.5 billion from the Pentagon in fiscal year 2014, according to the Federal Procurement Data System. The work at the heart of this case was part of a $613 million contract between the Defense Information Systems Agency and the corporation. Netcracker, which has done direct work for the Air Force and the General Services Administration, worked as a subcontractor on the deal.

In his complaint, Kingsley asserted that Computer Sciences Corporation executives knew about Netcracker’s work in Russia. But a corporation spokeswoman, in a written statement, denied it. “[Computer Sciences Corporation] believes it is as much a victim of NetCracker’s conduct as is our [Defense Information Systems Agency] customer and agreed to settle this case because the litigation costs outweigh those of the settlement,” Heather Williams wrote. “Security is of the utmost importance” to the corporation, she wrote.

Kingsley also said in his whistleblower complaint that when he questioned NetCracker’s general counsel about the propriety of the arrangement, the counsel assured him nothing was wrong. When he asked the company’s board of directors for permission to discuss the Russians’ participation with the Defense Information Systems Agency, his “requests were rebuffed,” he said in the complaint.

The next day, in an email to the board of directors at NetCracker Government Services, the company’s general counsel characterized Kingsley’s conversation with the government official as an “unscheduled, one-on-one meeting” that ended with a “vitriolic rampage” and left the Defense Information Systems Agency officer with the impression that Kingsley was a “lunatic,” according to Kingsley’s complaint. Kingsley said in his complaint that this description of the meeting was incorrect and intended to hurt Kingsley’s reputation with the company’s other board members.

Joanna Larivee, a spokeswoman for Netcracker, responded with a written statement that it “has cooperated fully with the Department of Justice throughout its review of this matter and explicitly denies liability for any wrongdoing. We have always taken responsible steps to ensure that best practices are deployed when managing client information and that NetCracker is compliant with the terms of our contracts. We have decided that it is in the best interest of all stakeholders to settle the matter.”

Of the total fines, NetCracker agreed to pay $11.4 million while the Computer Sciences Corporation agreed to pay $1.35 million. Under the False Claims Act, Kingsley’s share of the settlement is $2.3 million, according to the Justice Department.

Kingsley did not respond to a phone message left at his home in Fairfax, Virginia, on Tuesday. His lawyer, Paul Schleifman, said Kingsley spoke up about the Back Office in Russia because he was worried that it could harm national security. “[Kingsley] believes that his obligation is to the United States first,” Schleifman said, “not to his pocket.”

The settlement agreement leaves the door open for the Justice Department to pursue criminal charges based on Kingsley’s allegations. A Justice Department spokeswoman did not respond before deadline when asked whether any such charges are expected.

 

Iran: Death to America, Back ‘Atcha’ Iran

 Iran’s hardliners mark hostage anniversary with ‘infiltration’ warning

Reuters: Thousands of Iranians rallied to celebrate the anniversary of the 1979 hostage-taking at the U.S. embassy on Wednesday, as hardliners alleged Western “infiltration” following a landmark nuclear deal with world powers.

President Hassan Rouhani, however, in remarks highlighting division between moderates and hardliners, criticised the arrest of at least two journalists, the latest in a series of detentions also including dissident writers and artists.

“We should not arrest people without reason, making up cases against them and say they are a part of an infiltration network,” Rouhani told a cabinet meeting.

Demonstrators gathered in front of the abandoned U.S. Embassy in Tehran chanting “death to America” and urging Iran’s foreign minister and chief nuclear negotiator, Mohammad Javad Zarif, “Don’t trust the Americans.”

The U.S. embassy was sacked by students in the early days of the Islamic Revolution in 1979. The ensuing U.S. hostage crisis lasted 444 days and Washington and Tehran have yet to restore diplomatic ties.

Some protesters dragged a coffin marked “Obama” through the street while others carrying long balloons representing Iran’s latest ballistic missile, which was tested in October in defiance of a United Nations ban.

It is about time to terminate the Iran nuclear agreement and to declare a new adversarial front against Iran. The reasons are countless, one reason is above and the other is below.

U.S. Officials: Iranian Cyber-Attacks, Arrest of Americans May Be Linked

U.S. officials believe that the increasing number of hacking attacks carried out this past month by Iran’s Islamic Revolutionary Guard Corps (IRGC) against American government personnel may be linked to the arrests of American-Iranian citizens by the regime, The Wall Street Journal reported (Google link) Thursday.

The Islamic Revolutionary Guard Corps, or IRGC, has routinely conducted cyberwarfare against American government agencies for years. But the U.S. officials said there has been a surge in such attacks coinciding with the arrest last month of Siamak Namazi, an energy industry executive and business consultant who has pushed for stronger U.S.-Iranian economic and diplomatic ties.

Obama administration personnel are among a larger group of people who have had their computer systems hacked in recent weeks, including journalists and academics, the officials said. Those attacked in the administration included officials working at the State Department’s Office of Iranian Affairs and its Bureau of Near Eastern Affairs.

“U.S. officials were among many who were targeted by recent cyberattacks,” said an administration official, adding that the U.S. is still investigating possible links to the Namazi case. “U.S. officials believe some of the more recent attacks may be linked to reports of detained dual citizens and others.”

At the time of his arrest, the IRGC seized Namazi’s computer.

According to the Journal, friends and associates of Washington Post reporter Jason Rezaian were similarly targeted following his arrest last year.

Associates of Namazi say that the IRGC, which is believed to be responsible for his arrest and which reports directly to Iranian Supreme Leader Ayatollah Ali Khamenei, is using the cyber-attacks to help “build a false espionage case” against him.

Last month, the Journal reported that a cyber-security company, Dell Secureworks, had identified a scheme where Iranian hackers had set up false LinkedIn accounts in order to learn sensitive information from the defense and telecommunications sectors. In August, it was reported that Iran was targeting political dissidents living abroad with cyber-attacks.

Earlier this year, The New York Times revealed that the United States had enlisted the help of its allies, including Britain and Israel, to confront the escalating Iranian cyber-attacks.

A report released in 2014 by cyber-security firm Cylance highlighted Iran’s growing cyber-terror capabilities, including “bone-chilling evidence” that its hackers had taken control of gates and security systems at airports in South Korea, Saudi Arabia, and Pakistan.

Iran’s cyber-attacks are not just directed at other countries and individuals abroad, but also its own citizens. Massive attacks on Iranian Google accounts were detected prior to the presidential election two years ago as part of a broader crackdown on dissent.

In Iran Has Built an Army of Cyber-Proxies, published in the August 2015 issue of The Tower Magazine, Jordan Brunner examined how Iran became one of the world’s leading forces in cyber-warfare:

Iran is adept at building terrorist and other illicit networks around the world. Its cyber-capabilities are no different. It uses the inexpensive method of training and collaborating with proxies in the art of cyber-war. It may also have collaborated with North Korea, which infamously attacked Sony in response to the film The Interview. It is possible that Iran assisted North Korea in developing the cyber-capability necessary to carry out the Sony hack. While acknowledging that there is no definite proof of this, Claudia Rosett of the Foundation for Defense of Democracies raised the question in The Tower earlier this year.

More importantly, Iran is sponsoring the cyber-capabilities of terrorist organizations in Lebanon, Yemen, and Syria. The first indication of this was from Hezbollah. The group’s cyber-activity came to the attention of the U.S. in early 2008, and it has only become more powerful in cyberspace since then. An attack that had “all the markings” of a campaign orchestrated by Hezbollah was carried out against Israeli businesses in 2012.

Lebanon’s neighbor, Syria, is home to the Syrian Electronic Army (SEA), which employs cyber-warfare in support of the Assad regime. There are rumors that indicate it is trained and financed by Iran. The SEA’s mission is to embarrass media organizations in the West that publicize the atrocities of the Assad regime, as well as track down and monitor the activities of Syrian rebels. It has been very successful at both. The SEA has attacked media outlets such as The Washington Post, the Chicago Tribune, the Financial Times, Forbes, and others. It has also hacked the software of companies like Dell, Microsoft, Ferrari, and even the humanitarian program UNICEF.

The group has carried out its most devastating cyber-attacks against the Syrian opposition, often using the anonymity of online platforms to its advantage. For example, its hackers pose as girls in order to lure opposition fighters into giving up seemingly harmless information that can lead to lethal crackdowns. The SEA’s sophisticated use of cyberspace developed in a very short time, and it is reasonable to infer that this was due to Iranian training. Iran has long supported the ruling Assad regime in Syria and would be happy to support those who support him.

In recent months, a group called the Yemen Cyber Army (YCA) has arisen, hacking into systems that belong to Saudi Arabia. The YCA supports the Houthi militia, which is fighting the Yemenite government and the Saudis; the Houthis are, in turn, supported by Iran. Thus far, the YCA has attacked Saudi Arabia’s Foreign, Interior, and Defense Ministries. They have also hacked the website of the Saudi-owned newspaper Al-Hayat. Messages from the group indicate that they are sponsored by Iran, and might even be entirely composed of Iranians.

The Highly Controversial Transpacific Partnership Deal

The Trans-Pacific Partnership

Leveling the playing field for American workers & American businesses.

Hillary and Sid Vicious (Blumenthal)

Hillary Clinton’s Rogue Agenda: Why Sid Blumenthal Matters

NOVEMBER 04, 2015, Judicial Watch

After the media inexplicably dubbed Hillary Rodham Clinton the “winner” of the Benghazi hearings, her apologists dismissed a line of questioning into her unofficial adviser, Sidney Blumenthal.

So he was sending her e-mail offering advice on Libya and other matters of state. In the immortal words of Clinton at an earlier Benghazi hearing, “What difference does it make?”

It matters because Clinton flouted President Obama’s authority, secretly employing a man the administration had banned — then Clinton and Blumenthal pursued a rogue agenda often motivated by political favors and payoffs for friends.

Blumenthal was an aide to President Bill Clinton from 1997 to 2001 and one of his most reliable hatchet men. Luca Brasi without the charm, Blumenthal had smeared Monica Lewinsky, Independent Counsel Kenneth Starr, Republicans — and, when the time came, presidential candidate Barack Obama himself. His nickname: “Sid Vicious.”

E-mails show Hillary Clinton wanted him hired at State. But still smarting from Blumenthal’s attacks during the campaign, the administration nixed the appointment.

Clinton was undeterred. Despite telling the Benghazi committee that Blumenthal was “not my adviser, official or unofficial,” records show the Clinton political machine paid him at least $320,000 a year.

Just after his rejection by the State Department, and through March 2015, the Clinton Foundation paid Blumenthal $10,000 a month. Blumenthal’s job, according to Politico, was “highlighting the legacy” of President Bill Clinton.

From the summer of 2009 to the present day, according to Fox News, Blumenthal was paid $200,000 a year by Media Matters, an aggressive pro-Clinton information outlet led by David Brock. Blumenthal provides “high-level strategy and messaging advice” to Brock and others.

Little exists in the public record showing work by Blumenthal for the Clinton Foundation or Media Matters, and both organizations did not respond to requests for clarification.

But there is plenty on Blumenthal’s labors for Clinton — hundreds of private e-mails.

Blumenthal’s unusual work arrangement was a triple play fraught with potential conflicts of interest: He simultaneously advised the secretary of state and possible future president; promoted the interests of her husband as the former president scoured the globe seeking millions of dollars in speech fees and donations to the Clinton Foundation; and provided advice to an organization devoted to destroying their enemies.

Blumenthal cast a wide net as a de facto Clinton ambassador, promoting dubious business deals and political schemes.

The e-mails reveal at least three examples:

A LIBYAN CONTRACT

In Libya, Blumenthal promoted a deal sought by US defense contractor Osprey Global Solutions. According to its Web site, Osprey offers a wide variety of services — including “security, training, armament” — as well as the sale of assault rifles.

In an Oct. 7 letter to Benghazi committee ranking minority member Elijah Cummings, the panel’s chair, Trey Gowdy, noted Blumenthal “acknowledged a personal stake in Osprey.”

In hundreds of pages of e-mails, Gowdy noted, Blumenthal served as Secretary Clinton’s “primary adviser on Libya” and pushed her hard “to intervene” as Khadafy was going down.

But Blumenthal’s real motivation, Gowdy claims, was “money.”

Specifically, a deal to bring Osprey together with the fledgling transitional government in Libya.

Gowdy wrote that “at the same time Blumenthal was pushing Secretary Clinton to war in Libya, he was privately pushing” the Osprey deal in Libya.

Blumenthal lobbied for more aggressive military action. In a March 2011 e-mail, he urged “another round or two of ferocious bombing” of Khadafy’s army. He also advised Clinton to take credit for Khadafy’s eventual fall.

“You must go on camera,” he e-mailed her in August 2011, two months before the dictator’s gruesome death. “You must establish yourself in the historical record.”

Meanwhile, in a July 14, 2011, e-mail cited in the Gowdy letter, Blumenthal wrote Clinton that “Osprey will provide medical help, military training, organize supplies and logistics” to the post-Khadafy government.

He and his colleagues, Blumenthal wrote, “acted as honest brokers, putting this arrangement together through a series of connections, linking the Libyans to Osprey and keeping it moving.”

“Got it,” Clinton wrote Blumenthal. “Will follow up tomorrow. Anything else to convey?” Clinton forwarded the Blumenthal e-mail to a top aide, Jake Sullivan.

AN AFRICAN DEAL

In June 2009, Blumenthal began promoting Joseph Wilson, the former US ambassador who rose to fame challenging intelligence claims that Saddam Hussein had sought uranium “yellowcake” in Niger. Wilson was a fierce Bush administration critic and longtime Clinton supporter who had criticized candidate Barack Obama for “timid” views.

Now Wilson was in business as an Africa consultant and deal-maker.

“You’re addressing a group on Africa on Thursday,” Blumenthal e-mailed Clinton in September 2009. “Joe Wilson will be there and . . . wants to say hello. Please look out for him.”

“Pls be sure I see Joe,” Clinton e-mailed aides Huma Abedin and Lona Valmoro a minute later, copying Blumenthal.

“Will do,” Valmoro replied.

“Blumenthal cast a wide net as a de facto Clinton ambassador, promoting dubious business deals and political schemes.”

Wilson wanted to do more than just say hello. He was looking for business.

Blumenthal became the go-between for Clinton and Wilson. In an e-mail passed to Clinton by Blumenthal a week later, Wilson pitched his new client, Symbion Power.

Symbion was seeking millions of dollars in contracts from an obscure government agency chaired by the secretary of state, the Millennium Challenge Corp. (MCC).

Symbion, an electrical-power developer, had been “hugely successful” in Iraq and Afghanistan, Wilson wrote Clinton. Symbion was now setting up shop in Tanzania, Wilson noted, “where we will be bidding on all of the upcoming MCC-financed power generation and distribution projects. I have asked Sid to pass a memory stick with a four-minute video that explains what Symbion does and how it does it.”

More e-mails followed, including one the State Department later classified as containing “confidential” information. The November 2009 e-mail was sent by Wilson to Blumenthal, who passed it on to Clinton. Most of Clinton’s reply to Blumenthal is redacted as classified.

In the e-mail, Wilson noted Symbion’s “competitive advantage,” saying he was “very enthusiastic” about the company. Wilson wrote that he was a “director of Symbion Power” and that he “may soon assume direct responsibility for all of Africa as Symbion expands there — claims the company later disputed when its relationship with Wilson fell apart in contentious litigation.

In September 2010, MCC awarded Symbion $47 million in US taxpayer money for power projects in Tanzania.

AN EU ELECTION

In October 2009, Blumenthal promoted a scheme to make former UK Prime Minister Tony Blair president of the European Council, an influential arm of the European Union.

The Clintons were intrigued. “I’m copying Doug [Band] and Justin [Cooper] who are traveling” with Bill Clinton “and may have some ideas,” Secretary Clinton e-mailed Blumenthal on Oct. 28. She added, “If I have any other ideas I will let you know.”

Band and Cooper at the time were key members of Bill Clinton’s personal office and the Clinton Foundation.

The White House was staying out of the EU election. No one in the Blumenthal scheme appears to have given any thought to the shoddy ethics of having the secretary of state secretly lobbying for a result in a foreign election.

In the end, Blair was passed over for a center-right candidate.

Within two years, however, Blair would receive another plum post. Blair — along with Band, Cooper, Bill Clinton himself and many outgoing senior State Department officials — were put on the payroll of another Clinton-affiliated entity, Teneo Holdings.

STAY TUNED

The Blumenthal saga is not over.

On Friday, the State Department released more than 7,000 pages of Hillary Clinton e-mails under a court order. Among them were dozens of e-mails to and from Blumenthal. And there is more to come from the State Department, the Benghazi committee and lawsuits from watchdog groups such as Judicial Watch.

More troubling for the Clinton presidential campaign: The FBI is investigating security issues related to Clinton’s e-mail server.

Whether any crimes were committed remains to be seen. But despite the dismissal of the e-mail scandal in liberal circles, the recovered messages have already established a clear record of Clinton’s underhanded and unethical actions in office.

On Jan. 9, 2009, Hillary Clinton signed a letter pledging to stay out of Clinton Foundation business. In a document first disclosed by Judicial Watch, Clinton had promised State Department officials that she would keep to the “highest standards of ethical conduct” and “not participate” in foundation matters.

Yet she went behind the president’s back to keep a friend in the fold, then mixed the nation’s business with the interests of Blumenthal and her private foundation, giving government contracts to people like Joseph Wilson and pushing behind the scenes for EU elections.

Hillary Clinton violated her own pledge and the government’s rules. “What difference does it make?” A big difference.

DEA Joins FBI Against WH on Ferguson Effect

Last month, this website wrote that FBI Director James Comey has determined the real cause of the low morale by the nation’s law enforcement. The White House has continued to push back hard on Comey but now the Drug Enforcement Agency is standing with the FBI on this very issue. Border Patrol also joined with the DEA and FBI.

DEA chief: Comey ‘spot on’ linking Ferguson impact to crime surge

USAToday – WASHINGTON — The nation’s top drug enforcement official said Wednesday that FBI Director James Comey was “spot on” when he recently offered the controversial assessment that violent crime surges in some cities may be linked to police officers’ reluctance to engage suspects.

“I think there is something to it,” Drug Enforcement Administration chief Chuck Rosenberg told reporters, referring to the so-called “Ferguson-effect” in which police have been reportedly hesitant to act for fear of prompting the kind of civil unrest that engulfed Ferguson, Mo., last year. “I think (Comey) was spot on.”

Comey’s remarks during appearances last month in Chicago put the FBI director at odds with some in law enforcement and the White House, which indicated that existing evidence did not support such a claim.

“I will say that the available evidence at this point does not support the notion that law enforcement officers around the country are shying away from fulfilling their responsibilities,” White House spokesman Josh Earnest said last week. “On the contrary, I think you’ve seen a lot of local law enforcement leaders indicate that police officers and sheriffs and other local law enforcement officials are actually dedicated public servants who on a daily basis are putting their lives on the line to serve and protect the communities that they’re assigned to.”

The FBI director has acknowledged that data is lacking to support a definitive conclusion, yet he said that he maintained a “strong sense” of a connection based on reports from local law enforcement officials.

Rosenberg, who served as Comey’s chief of staff before his May appointment as acting DEA administrator, said he has heard similar concerns from local law enforcement officials.

“I’ve heard the same things,” Rosenberg said. “I think it’s worth talking about. I don’t know if it will turn out to be right or wrong. That’s why Comey called for better data. The data that we have is limited. It just is.”

Of the disagreement voiced by the White House, Rosenberg said: “The White House is a building, so I’m not sure what the White House thinks,” Rosenberg said, adding that he believed Comey’s remarks were “thoughtful and measured.”

“When you get criticized from the right and the left, you probably hit it just about perfectly,” he said.

For months, law enforcement officials have been grappling with the possible causes of recent spikes in violent crime plaguing some major cities — Baltimore, Chicago, Milwaukee and St. Louis among them — even as crime in much of the country has been in a sustained decline.

Last month, Attorney General Loretta Lynch hosted a meeting to address the issue where representatives of at least 20 cities cited poverty, heroin addiction and easy access to firearms as likely triggers. Others also voiced frustration that an erosion of public support for officers was having an effect on the way communities were being policed.

“We also cannot avert our gaze from the fact that police in cities feel like they are not being supported by the federal government,” Milwaukee Police Chief Edward Flynn said and referred to a recent federal focus on the operations of more than 20 police agencies in recent years prompted by allegations of officer misconduct. “Right now, officers feel like they are being defined by everything they are working against.”

“Every incident, regardless of where it happens, they are made to feel they must answer for,” the chief said. “It’s hurting them. National policing policy is being driven by random YouTube videos.”