The Under Reported Threat to the US of Smuggling Chinese

We have watched for years the chaos at the U.S. Southern border with Mexico. While there is has been a single focus on Latin Americans crossing into the United States, very little has been reported about the volume of Chinese. This should stimulate some critical thinking and questions.

Is this espionage, operatives or the building of a force for other reasons? In February of 2020, NBC News was asking some of the same questions.

A Chinese student walked around a perimeter fence at a U.S. naval base in Key West, taking pictures of government buildings. Stopped by police, he said he was trying to capture images of the sunrise.

aerial view of nas key west naval air station base truman ...

And nine days after that, two more Chinese students drove past a guard at the same naval base. When stopped by security 30 minutes later, they voluntarily displayed the videos and photos they had taken of the base.

The first Chinese student arrested at the naval base in Key West was Zhao Qianli, 20, who was taken into custody on Sept. 26, 2018.

Zhao entered the base by walking along the facility’s secure fence line and trudging through the beach, court documents say.

Zhao headed directly to the Joint Interagency Task Force South property, according to court records, where he took several photographs on his Motorola cellphone and his Canon EOS digital camera.

His devices contained photos and videos of sensitive equipment at the facility’s “antenna farm,” as well as images of warning signs that read “Military Installation” and “Restricted Area,” according to court documents.

Zhao initially told military police that he was “lost” and that he was a “dishwasher from New Jersey.” In later conversations with the FBI, Zhao said he traveled to Key West to “see the sights, such as the Hemingway House,” but there were no images of tourist attractions on his phone, according to his sentencing memo.

Zhao admitted to receiving military training as a university student in China and was found to have a “police blouse” and a People’s Republic of China Interior Ministry belt buckle at his hotel, the memo says.

 

In 2016, Newsweek in part reported:

Smuggling Chinese across the southern U.S. border appeals to traffickers because it is more lucrative than smuggling individuals from Mexico or Central America. A longer journey commands a steeper price and the going rate per person is believed to be somewhere between $50,000 and $70,000; the total value of the trade for the Chinese mafias involved has been estimated at $750 million.

The role of Chinese mafia groups (triads) in bringing migrants across the border has also deepened their exposure to and ties with Latin American narcotics cartels, both in human smuggling and beyond.

An “alliance between Chinese and Latin American smuggling rings” was noted as early as 1993, but today the scope of this “alliance” encompasses not just smuggling, but also other illicit activity including the sale of drug precursors from Asia and pirated materials.

In Mexico, contact between triads and cartels occurs in various regions, including those ruled by the ruthless Los Zetas syndicate and the Gulf and Juarez cartels, depending on what routes are used for migrants. Triad groups are believed to operate in the Mexican state of Chiapas and the Red Dragon triad, which operates in Peru, is involved not only in smuggling, but also in extortion and drug trafficking within Latin America. The wide-ranging activities of transnational organized crime groups generate additional law enforcement concerns beyond border security.

But it is important to look to the other side of our country, the area of the Bahamas and South Florida. A few islands in the Bahamas are now fully owned by China, one such island is Bird Cay. From Forbes in 2019 in part:

Quoting CaribbeanNews.com directly:

“China has set its sights on The Bahamas and has invested billions of dollars in building new infrastructure and industry across the country.

New roads, new businesses, new hotels, and booming Chinese immigration has led to many companies being staffed with more Chinese workers than local Bahamians.”

Plus, “Reports show that over 200,000 Chinese are illegally smuggled into the Caribbean every year to open their shops or work at Chinese businesses, with many sending their money back to China.”

However, the local government doesn’t see how it’s in a good position to do anything about it since Chinese state banks are simultaneously flooding the islands with tens of millions of dollars… even going so far as to finance new ports there.

Private Islands for sale - Bird Cay - Bahamas - Caribbean Bird Cay, owned now by China

Hold on, there is South Florida where those smuggled Chinese are making their way into the United States aboard some very expensive yachts.

The Miami Herald just last year told us:

Dozens of Chinese nationals without proper papers have been smuggled from the Bahamas to South Florida by operators of luxury yachts who are charging them thousands of dollars each for the short Atlantic journey, according to federal criminal cases.

In recent instances, the Coast Guard stopped two vessels approaching the South Florida shore, leading to the arrests of three men accused of transporting a total of 26 Chinese passengers and one Bahamian, court records show. The alien smuggling operations were not related, however.

Rocco Oppedisano, a 51-year-old Italian national, is scheduled for arraignment in Miami federal court Wednesday on charges of conspiring to transport aliens into the United States and bringing them here for financial gain. Oppedisano told a magistrate judge this week that properties he once owned in the Northeast have been sold along with his Mercedes-Benz, Porsche and Fiat vehicles to pay for legal costs over his immigration troubles.

Oppedisano was stopped by the Coast Guard on Dec. 2 while he was commandeering a 63-foot Sunseeker yacht named INXS FINALLY with 14 Chinese passengers and one Bahamian, according to an indictment. Among the passengers was a Chinese national, Ying Lian Li, who was deported last April but tried to re-enter the country.

It is unclear why these Chinese nationals — unlike Cubans and Haitians smuggled here in both go-fast and rickety boats in the past — sought to come to South Florida. But over the past five years, the Bahamas has experienced an influx of Chinese workers flocking to the archipelago as part of a push by China to invest in the country’s hotel, tourism and trade industries.

In the other alien smuggling case, a Coast Guard cutter encountered a 70-foot Hatteras yacht about 20 miles east of South Florida on July 23, when officers radioed the vessel to ask how many people were on board. The yacht’s response: two crew and eight Japanese passengers with passports, who did not need additional visas to enter the United States.

It was all a lie, according to a Homeland Security Investigations criminal affidavit.

About 10 miles east of Port Everglades, Coast Guard officers boarded the yacht and asked crew member Robert L. McNeil Jr. to bring all the passengers on deck. The officers counted 12 passengers with passports from the People’s Republic of China but without required visas to enter the United States, according to the HSI affidavit.

The Coast Guard concluded that none of the 12 Chinese nationals possessed documents that would allow them to enter the United States legally. McNeil, and the yacht’s charter captain, James A. Bradford, along with the 12 Chinese nationals were transferred to the Coast Guard cutter.

During questioning, Bradford said he left South Florida on the Hatteras yacht bearing the name CAREFREE on July 22 and arrived in Nassau, Bahamas, that day. He admitted that the purpose of the trip was to pick up a “tour group of aliens” in the Bahamas, transport them to South Florida and return to the Bahamas on July 26.

Bradford, who has been a charter captain for decades, said “he never checked to see if the passengers had proper documents to come to the U.S.,” according to the affidavit.

A search of the yacht uncovered 10 cellphones in the bridge area; none of the Chinese nationals had mobile phones on them.

“Based on my knowledge and experience in human smuggling cases, smugglers often collect cell phones from migrants until they are paid for delivering the migrants to the U.S.” wrote HSI special agent David Jansen, who added that none of the passengers carried any luggage.

The search also uncovered $118,100 hidden behind the wall paneling of the yacht’s master bedroom, the affidavit said. Investigators also seized more than $2,800 from McNeil.

Both Bradford and McNeil were indicted on charges of conspiring to transport aliens into the United States and bringing them here for financial gain. To resolve his case, McNeil pleaded guilty earlier this month to one count of alien smuggling to make a profit. He faces up to 10 years in prison.

The Hill says this is a disturbing trend.

Matt Cardy/Getty Images

While it’s unclear why these Chinese nationals sought to come to South Florida, the move is part of a larger five-year trend in the region. The Bahamas has seen a surge of Chinese workers as China invests in the archipelago’s hospitality and tourism industries. China’s presence in the Bahamas reportedly stems from a burgeoning relationship between the two countries, after China provided disaster relief in a bid to establish trade.

 

Have you Heard of the FBI’s Trojan Shield Program?

New court records detail how the FBI turned encrypted phone company ‘Anom’ into a honeypot for organized crime.

Vice: For years the FBI has secretly run an encrypted communications app used by organized crime in order to surreptitiously collect its users’ messages and monitor criminals’ activity on a massive scale, according to a newly unsealed court document. In all, the elaborate operation netted more than 20 million messages from over 11,800 devices used by suspected criminals.

The news signals a major coup for law enforcement: ordinarily, agencies either shut down or crack messages on an already established service, such as Phantom Secure or Encrochat, two similar encrypted messaging networks. But in this case, the FBI took control of a communications company called ‘Anom’ in its infancy and turned that into a wide reaching honeypot, with the suspected criminal users instead coming to them.

“The FBI opened a new covert investigation, Operation Trojan Shield, which centered on exploiting Anom by inserting it into criminal networks and working with international partners, including the Australian Federal Police (“AFP”), to monitor the communications,” the unsealed court record reads, referring to Anom, the app at the center of the investigation. Seamus Hughes, a researcher at George Washington University, shared the document with Motherboard.

Do you know anything else about Anom? Were you a user? We’d love to hear from you. Using a non-work phone or computer, you can contact Joseph Cox securely on Signal on +44 20 8133 5190, Wickr on josephcox, OTR chat on [email protected], or email [email protected].

The AFP began going public with the contours of Anom Tuesday morning local time, and announced it had begun making arrests with data pulled from the honeypot.

In 2018, the FBI arrested Vincent Ramos, the CEO of Phantom Secure, which provided custom, privacy-focused devices to organized criminals. In the wake of that arrest, a confidential human source (CHS) who previously sold phones on behalf of Phantom and another firm called Sky Global, was developing their own encrypted communications product. This CHS then “offered this next generation device, named ‘Anom,’ to the FBI to use in ongoing and new investigations,” the court document reads. While criminals left Phantom, they flocked to other offerings. One of those was Anom; the FBI started what it called Operation Trojan Shield, in which it effectively operated a communications network targeted to criminals and intercepted messages running across it.

The FBI, AFP, and CHS built the Anom system in such a way that a master key silently attached itself to every message set through the app, enabling “law enforcement to decrypt and store the message as it is transmitted,” the document reads.

“A user of Anom is unaware of this capability,” it adds.

But first the FBI and their source needed to establish Anom as an option in the criminal underworld. As Motherboard showed in a years-long investigation, using sources around Phantom as well as FBI files, Phantom was particularly popular in Australia. The CHS introduced Anom to his already trusted distributors of mobile devices, who were in turn trusted by criminal organizations, the document reads. Three people in Australia who had previously distributed Phantom, “seeing a huge payday,” agreed to then sell these Anom devices, the document adds. With this, “the FBI aimed to grow the use of Anom organically through these networks,” it reads.

anom-site.png

A screenshot of the Anom site Motherboard took before Anom closed. Image: Motherboard.

Earlier on Monday before obtaining the court record, Motherboard reviewed Anom’s social media presence. The company’s Reddit account first announced the existence of the company two years ago, according to a since deleted but cached Reddit post that Motherboard found.

“Introducing Anom—a Ultra-Secure Mobile-Cell-Phone Messaging App for Android,” the announcement read. “Your Confidentiality, Assured. Software hardened against targeted surveillance and intrusion—Anom Secure. Keep Secrets Safe!”

Anom started to grow, with initially 50 devices distributed in Australia and the AFP able to monitor the phones. It was slow at first, but soon word of the new devices spread, with Anom gathering several hundred users a year later, the document continued.

A third country also got involved in the investigation, and provided the FBI with Anom user data three times a week.

“This data comprises the encrypted messages of all of the users of Anoms with a few exceptions (e.g., the messages of approximately 15 Anom users in the U.S. sent to any other Anom device are not reviewed by the FBI),” the document reads.

Anom had grown exponentially in size, stretching beyond its Australian beginnings to having over 10,000 devices in over 90 countries. Germany, the Netherlands, Spain, and Serbia were also popular, with over 300 distinct transnational criminal organizations (TCOs) using the devices, the document reads. When authorities closed down Sky, as Motherboard reported in March, Anom’s user base tripled.

The number of obtained messages totalled at over 20 million messages since October 2019. Messages include discussions around drug smuggling, corruption, and other high-level organized criminal activities. The document also includes direct quotes of messages from Anom users discussing cocaine shipments.

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A series of messages included in the court document. Image: Motherboard.

“There is 2kg put inside french diplomatic sealed envelopes out of Bogotta [sic],” one message reads referring to how the people are allegedly hiding shipments of cocaine.

“The Trojan Shield investigation has uncovered that Anom devices are used by TCOs to traffic drugs and launder the proceeds of those drug sales,” the document reads. “The distributors of these devices also obstruct justice by remotely wiping the content of devices when law enforcement seizes them. Additionally, the review of Anom messages has initiated numerous high-level public corruption cases in several countries. The most prominent distributors are currently being investigated by the FBI for participating in an enterprise which promotes international drug trafficking, money laundering, and obstruction of justice.”

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A screenshot of a map showing what the FBI says its Anom’s spread around the world. Image: Motherboard

Late Monday, the FBI said that it would be holding “a news conference announcing a massive worldwide takedown based on the San Diego FBI’s unprecedented investigation involving the interception of encrypted communications” on Tuesday.

The Phantom, Sky, and Encrochat operations showed that law enforcement may shutdown or even hack into encrypted phone companies. But the Anom case shows that law enforcement will also go one step further: they will run such a network themselves. A previous DEA operation involved something similar but on a much smaller scale with BlackBerry devices.

“A goal of the Trojan Shield investigation is to shake the confidence in this entire industry because the FBI is willing and able to enter this space and monitor messages,” the document reads.

US has Recovered Ransom Payment of the Colonial Pipeline Hack

Just last month, this site posted a detailed article about the fallout of DarkSide, the hackers of the Colonial Pipeline. In short, U.S. officials seized at least two servers.

Now there is more….like the ransom payment, not all of it, but $2.3 million in real dollars, remember it was paid in cryptocurrency. (Remember, money was paid out to all the dark actors of the DarkSide)

“In addition, a couple of hours after the seizure, funds from the payment server (belonging to us and our clients) were withdrawn to an unknown account,” the DarkSide ransomware operation told its affiliates.

DarkSide: New targeted ransomware demands million dollar ...

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(AP) — The Justice Department has recovered the majority of a multimillion-dollar ransom payment to hackers after a cyberattack that caused the operator of the nation’s largest fuel pipeline to halt its operations last month, officials said Monday.

The operation to recover the cryptocurrency from the Russia-based hacker group is believed to be the first of its kind, and reflects what U.S. officials say is an increasingly aggressive approach to deal with a ransomware threat that in the last month has targeted critical industries around the world.

“By going after an entire ecosystem that fuels ransomware and digital currency, we will continue to use all of our tools and all of our resources to increase the costs and the consequences of ransomware attacks and other cyber-enabled attacks,” Deputy Attorney General Lisa Monaco said at a news conference announcing the operation.

Georgia-based Colonial Pipeline, which supplies roughly half the fuel consumed on the East Coast, temporarily shut down its operations on May 7 after a gang of criminal hackers known as DarkSide broke into its computer system.

Colonial officials have said they took their pipeline system offline before the attack could spread to its operating system, and decided to pay a roughly $4.4 million ransom in an effort to bring itself back online as soon as it could.

The FBI generally discourages the payment of ransom, fearing it could encourage additional hacks.

SCOTUS Unanimous Decision on Temporary Protective Status

There have been several unanimous decisions out of the Supreme Court lately and this one is curious. The progressive Jurist Elena Kagan wrote this on regarding immigrants obtaining a green cards status….simple description….NO, they can’t have one.

Sounds good…but hold on.

And remember –> The Trump administration has ordered an end to TPS benefits for nearly all immigrants who had them, stating that the program is meant to provide temporary rather than long-term relief. But a series of lawsuits challenging the administration’s decision have blocked those orders from taking effect, giving the vast majority of these immigrants a reprieve until early 2021.

Immigrants from 10 nations have Temporary Protected Status

LATimes:

The Supreme Court on Monday dealt a setback to hundreds of thousands of immigrants who have so-called temporary protected status, ruling they can’t have a green card if they entered the country illegally.

That means TPS recipients who entered the county legally as students or tourists, and stayed under TPS may obtain a green card, said Justice Elena Kagan. But the same is not true of those who entered illegally.

“Because a grant of TPS does not come with a ticket of admission,” she wrote in Sanchez vs. Mayorkas, “it does not eliminate the disqualifying effect of an unlawful entry.”

Temporary protected status has been extended to about 320,000 immigrants from El Salvador, Haiti, Honduras, Nepal, Nicaragua and Sudan.

But lower courts had been divided over whether these migrants, many of whom have lived here for decades, may apply for and receive lawful permanent status. Four years ago, the 9th Circuit Court in California ruled that TPS recipients were eligible for green cards even if they entered the country illegally.

The case decided by the Supreme Court began when Jose Sanchez and his wife, Sonia Gonzalez, sought green cards. They arrived from El Salvador in the late 1990s, established lives and careers in New Jersey and had four sons. But they were not lawfully admitted.

Kagan said Congress is considering legislation that would allow such TPS recipients to obtain lawful permanent resident status, but only Congress, not the court, can change the law in this respect.

“Sanchez was not lawfully admitted, and his TPS does not alter that fact,” she wrote. “He therefore cannot become a permanent resident of this country.”

***

When can the Secretary designate a country for TPS?

The Secretary can designate a country for TPS due to:

  • Ongoing armed conflict (such as civil war),
  • An environmental disaster (such as earthquake or hurricane), or an epidemic, or
  • Other extraordinary and temporary conditions.

Who is eligible for TPS?

TPS can be granted to an individual who is a national of a designated country, has filed for status during a specified registration period, and who has been continuously physically present in the U.S. since a designated date.

What are the benefits of TPS?

During a designated period, TPS holders are:

  • Not removable from the U.S. and not detainable by DHS on the basis of his or her immigration status,
  • Eligible for an employment authorization document (EAD), and
  • Eligible for travel authorization.

How many individuals are currently granted TPS?

The U.S. currently provides TPS to over 400,000 foreign nationals from the following countries, not including individuals from Venezuela and Burma as they were just recently designated:

Country Estimated Number
Venezuela 323,000 eligible
El Salvador 251,567
Honduras 80,709
Haiti 56,453
Nepal 14,575
Syria 7,010
Nicaragua 4,526
Yemen 1,465
Sudan 805
Somalia 465
South Sudan 83
Burma N/A

Where do TPS holders live?

TPS holders reside all over the United States. The largest populations of TPS holders live in California (17.95%), Florida (13.75%), Texas (12.88%), New York (12.33%), and Virginia (6.75%). Most TPS holders from El Salvador live in the Washington, DC (32,359), Los Angeles (30,415) and New York (23,168) metropolitan areas. Honduran TPS holders live mostly in the New York (8,818), Miami (7,467) and Houston (6,060) metropolitan areas. Haitian TPS holders live mainly in the Miami (16,287), New York (9,402) and Boston (4,302) metropolitan areas. source

We have no idea how many people have been granted TPS, there are only estimates as noted here.

(From uscis.gov website)

Schumer and Dark Money Called Majority Forward Investigation

Points back again to that pesky Marc Elias –>

Majority Forward was incorporated in June by Perkins Coie lawyer Marc Elias, who represents Senate Majority PAC.

Elias, who is also general counsel for the campaign of Democratic presidential candidate Hillary Clinton, said Friday night he could not immediately comment.

Forward Majority | Millennial Politics

FNC: A dark money group aligned with Senate Majority Leader Chuck Schumer, D-N.Y., is facing an Internal Revenue Service complaint from a liberal watchdog group for concealing their political activity where they attempted to damper GOP election turnout for certain races in 2018.

Recently released tax records from the liberal nonprofit Majority Forward showed the dark money group gave $2.7 million to a different nonprofit, the Coalition for a Safe and Secure America (CSSA), in 2018, according to Axios.

Majority Forward is part of the Senate Majority PAC, serving as its nonprofit arm. The $2.7 million it gave made up the majority of the $4 million raised by CSSA that year.

CSSA converted that money into multiple direct-mailing campaigns and digital advertisements during the 2018 midterm cycle targeting Republican lawmakers, including Sens. Josh Hawley, R-Mo., and Mike Braun, R-Ind.

The ads were deceptive in their nature, claiming the candidates had changed their position on central conservative tenets, and were posted to state-specific Facebook pages.

The ads led to the liberal watchdog group Citizens for Responsibility and Ethics in Washington (CREW) to file an IRS complaint against CSSA. Majority Forward also recently admitted it left off legally required disclosures from direct-mail pieces in the 2018 midterm cycle.

“Coalition for a Safe Secure America appears to have falsely told the IRS they were not involved in politics. Dark money groups too often bypass the law in their efforts to secretly and improperly influence who is elected,” CREW president Noah Bookbinder said in a statement published last month. “We urge the IRS to open an investigation into Coalition for a Safe Secure America and take swift and appropriate action for any potential violations.”

CSSA’s ad targeting Hawley accused him of siding “with Washington liberals against gun owners.” Braun was labeled “Tax-Hike-Mike.”

Additionally, former Sen. Dean Heller, R-Nev., and Rep. Matt Rosendale, R-Mont., were targeted by its ads during the 2018 cycle. Heller and Rosendale both lost their races.

Heller was charged with allowing “almost 200,000 foreign workers a backdoor entry into our country.” Rosendale was accused of supporting “drone monitoring” while running for a Montana Senate seat.

Some of the ads also promoted Libertarian Party candidates to siphon votes away from the targeted Republicans.

Majority Forward was able to finance the ads while hiding its true reasons behind the ads through loopholes in campaign finance laws that allowed limited political activity from nonprofits.