Category Archives: Clinton Fraud

Hillary Paid for Document/Hard Drive Destruction

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Dates matter, so it would take some time to put the chronology together but certainly the subpoenas, FOIA requests and testimonies would clearly have occurred before February and March of 2016. It would appear obstruction of an FBI investigation and congressional procedures and law has entered a new realm by the Clinton camp.

We cant know the status at this point of the FBI investigation, but there are some great journalists that are doing some collateral investigations. It is clear there are known and unknown moving parts, such that Hillary are her team may not be able to survive this at all, even given the denials by her legal teams.

Clinton Campaign Made Payments to Hard Drive and Document Destruction Company

Payments could have purchased destruction of 14 hard drives

FreeBeacon: The Hillary Clinton campaign made multiple payments to a company that specializes in hard drive and document destruction, campaign finance records show.

The payments, which were recorded in February and March of 2016, went to the Nevada-based American Document Destruction, Inc., which claims expertise in destroying hard drives or “anything else that a hard drive can come from.”

“Our hard drive destruction procedures take place either at your site or at our secure facility in Sparks, NV,” the company’s website states. “This decision is yours to decide based on cost and convenience to you. In either situation, the hard drive will be destroyed by a shredding.”

“We have a dedicated machine for hard drive destruction,” the website continues. “We will also record the serial numbers of all drives to be destroyed to be kept in our records. A copy of this log can be provided to you as well.”

The routine services section of the site says that the company operates in 26 areas in Nevada and California, including Reno, Virginia City, Sparks, Tahoe City, and Carson City.

“Our equipment is powerful. Whether you require ON SITE or OFF SITE service, performed at our Sparks facility, large volumes can be quickly destroyed regardless of staples, clips or fasteners,” the site says. “Office paper, folders, binders and computer media can be destroyed in just minutes. As a result, we pass the savings on to you! A new service we also offer is computer hard drive destruction, either ON-SITE or OFF-SITE.”

“ADDNV, Inc. ensures that even small amounts are economical to have destroyed. ADDNV, Inc. encourages our clients to visit the Sparks facility to observe the shredding of your documents. The added bonus with ADDNV, Inc. is that we offer personal service whenever you need it. We can be reached locally and our customers are more than just account numbers in a large franchise.”

Transactions from Hillary for America to American Document Destruction, Inc. were made to the Sparks, Nevada location.

The first payment from the campaign to the destruction company came on Feb. 3 in the amount of $43, Federal Election Commission filings shows.

Two additional payments of $43 and $58 were made on Feb. 21. A fourth payment of $43 was made on March 26, bringing the amount paid to the destruction company to $187.

The Washington Free Beacon contacted American Document Destruction, Inc. to inquire about its rates.

An employee for the company said that it charges $10 per hard drive and $5 per cubic foot of paper. The Clinton campaign could have destroyed 14 hard drives or shredded 37.4 cubic feet of paper at those rates.

The Clinton campaign did not return a request for comment about what documents it paid to have destroyed.

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There is evidence that Marcel Lazar Lehel, (Guccifer) gained unauthorized access to Hillary’s server. Some in media are asking about his hacking the server. There is a distinct difference between entry and hacking. Guccifer has admitted to Fox News that he did gain entry and noticed several foreign IP addresses there as well as information about voting. It could be that he had no real interest in that kind of information on her server, so he chose not to exploit anything further in that regard to the media.

To date, there is nothing in Lehel’s responses that appear to be erroneous as compared to what has been determined in the official investigations.

Romanian hacker Guccifer: I breached Clinton server, ‘it was easy’

Fox EXCLUSIVE: The infamous Romanian hacker known as “Guccifer,” speaking exclusively with Fox News, claimed he easily – and repeatedly – breached former Secretary of State Hillary Clinton’s personal email server in early 2013.

“For me, it was easy … easy for me, for everybody,” Marcel Lehel Lazar, who goes by the moniker “Guccifer,” told Fox News from a Virginia jail where he is being held.

Guccifer’s potential role in the Clinton email investigation was first reported by Fox News last month. The hacker subsequently claimed he was able to access the server – and provided extensive details about how he did it and what he found – over the course of a half-hour jailhouse interview and a series of recorded phone calls with Fox News.

Fox News could not independently confirm Lazar’s claims.

In response to Lazar’s claims, the Clinton campaign issued a statement  Wednesday night saying, “There is absolutely no basis to believe the claims made by this criminal from his prison cell. In addition to the fact he offers no proof to support his claims, his descriptions of Secretary Clinton’s server are inaccurate. It is unfathomable that he would have gained access to her emails and not leaked them the way he did to his other victims.”

The former secretary of state’s server held nearly 2,200 emails containing information now deemed classified, and another 22 at the “Top Secret” level.

The 44-year-old Lazar said he first compromised Clinton confidant Sidney Blumenthal’s AOL account, in March 2013, and used that as a stepping stone to the Clinton server. He said he accessed Clinton’s server “like twice,” though he described the contents as “not interest[ing]” to him at the time.

“I was not paying attention. For me, it was not like the Hillary Clinton server, it was like an email server she and others were using with political voting stuff,” Guccifer said.

The hacker spoke freely with Fox News from the detention center in Alexandria, Va., where he’s been held since his extradition to the U.S. on federal charges relating to other alleged cyber-crimes. Wearing a green jumpsuit, Lazar was relaxed and polite in the monitored secure visitor center, separated by thick security glass.

In describing the process, Lazar said he did extensive research on the web and then guessed Blumenthal’s security question. Once inside Blumenthal’s account, Lazar said he saw dozens of messages from the Clinton email address.

Asked if he was curious about the address, Lazar merely smiled. Asked if he used the same security question approach to access the Clinton emails, he said no – then described how he allegedly got inside.

“For example, when Sidney Blumenthal got an email, I checked the email pattern from Hillary Clinton, from Colin Powell from anyone else to find out the originating IP. … When they send a letter, the email header is the originating IP usually,” Lazar explained.

He said, “then I scanned with an IP scanner.”

Lazar  emphasized that he used readily available web programs to see if the server was “alive” and which ports were open. Lazar identified programs like netscan, Netmap, Wireshark and Angry IP, though it was not possible to confirm independently which, if any, he used.

In the process of mining data from the Blumenthal account, Lazar said he came across evidence that others were on the Clinton server.

“As far as I remember, yes, there were … up to 10, like, IPs from other parts of the world,” he said.

With no formal computer training, he did most of his hacking from a small Romanian village.

Lazar said he chose to use “proxy servers in Russia,” describing them as the best, providing anonymity.

Cyber experts who spoke with Fox News said the process Lazar described is plausible. The federal indictment Lazar faces in the U.S. for cyber-crimes specifically alleges he used “a proxy server located in Russia” for the Blumenthal compromise.

Each Internet Protocol (IP) address has a unique numeric code, like a phone number or home address.  The Democratic presidential front-runner’s home-brew private server was reportedly installed in her home in Chappaqua, N.Y., and used for all U.S. government business during her term as secretary of state.

Former State Department IT staffer Bryan Pagliano, who installed and maintained the server, has been granted immunity by the Department of Justice and is cooperating with the FBI in its ongoing criminal investigation into Clinton’s use of the private server. An intelligence source told Fox News last month that Lazar also could help the FBI make the case that Clinton’s email server may have been compromised by a third party.

Asked what he would say to those skeptical of his claims, Lazar cited “the evidence you can find in the Guccifer archives as far as I can remember.”

Writing under his alias Guccifer, Lazar released to media outlets in March 2013 multiple exchanges between Blumenthal and Clinton. They were first reported by the Smoking Gun.

It was through the Blumenthal compromise that the Clintonemail.com accounts were first publicly revealed.

As recently as this week, Clinton said neither she nor her aides had been contacted by the FBI about the criminal investigation. Asked whether the server had been compromised by foreign hackers, she told MSNBC on Tuesday, “No, not at all.”

Recently extradited, Lazar faces trial Sept. 12 in the Eastern District of Virginia. He has pleaded not guilty to a nine-count federal indictment for his alleged hacking crimes in the U.S. Victims are not named in the indictment but reportedly include Colin Powell, a member of the Bush family and others including Blumenthal.

Lazar spoke extensively about Blumenthal’s account, noting his emails were “interesting” and had information about “the Middle East and what they were doing there.”

After first writing to the accused hacker on April 19, Fox News accepted two collect calls from him, over a seven-day period, before meeting with him in person at the jail. During these early phone calls, Lazar was more guarded.

After the detention center meeting, Fox News conducted additional interviews by phone and, with Lazar’s permission, recorded them for broadcast.

While Lazar’s claims cannot be independently verified, three computer security specialists, including two former senior intelligence officials, said the process described is plausible and the Clinton server, now in FBI custody, may have an electronic record that would confirm or disprove Guccifer’s claims.

“This sounds like the classic attack of the late 1990s. A smart individual who knows the tools and the technology and is looking for glaring weaknesses in Internet-connected devices,” Bob Gourley, a former chief technology officer (CTO) for the Defense Intelligence Agency, said.

Gourley, who has worked in cybersecurity for more than two decades, said the programs cited to access the server can be dual purpose. “These programs are used by security professionals to make sure systems are configured appropriately. Hackers will look and see what the gaps are, and focus their energies on penetrating a system,” he said.

Cybersecurity expert Morgan Wright observed, “The Blumenthal account gave [Lazar] a road map to get to the Clinton server. … You get a foothold in one system. You get intelligence from that system, and then you start to move.”

In March, the New York Times reported the Clinton server security logs showed no evidence of a breach.  On whether the Clinton security logs would show a compromise, Wright made the comparison to a bank heist: “Let’s say only one camera was on in the bank. If you don‘t have them all on, or the right one in the right locations, you won’t see what you are looking for.”

Gourley said the logs may not tell the whole story and the hard drives, three years after the fact, may not have a lot of related data left. He also warned: “Unfortunately, in this community, a lot people make up stories and it’s hard to tell what’s really true until you get into the forensics information and get hard facts.”

For Lazar, a plea agreement where he cooperates in exchange for a reduced sentence would be advantageous. He told Fox News he has nothing to hide and wants to cooperate with the U.S. government, adding that he has hidden two gigabytes of data that is “too hot” and “it is a matter of national security.”

In early April, at the time of Lazar’s extradition from a Romanian prison where he already was serving a seven-year sentence for cyber-crimes, a former senior FBI official said the timing was striking.

“Because of the proximity to Sidney Blumenthal and the activity involving Hillary’s emails, [the timing] seems to be something beyond curious,” said Ron Hosko, former assistant director of the FBI’s Criminal Investigative Division from 2012-2014.

The FBI offered no statement to Fox News.

Judge Signals Hillary for Deposition on Emails/Then Trump

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Federal judge opens the door to Clinton deposition in email case

A federal judge on Wednesday opened the door to interviewing Democratic presidential front-runner Hillary Clinton as part of a review into her use of a private email server while secretary of State.

Judge Emmet Sullivan of the U.S. District Court for the District of Columbia laid out the ground rules for interviewing multiple State Department officials about the emails, with an eye toward finishing the depositions in the weeks before the party nominating conventions.

Clinton herself may be forced to answer questions under oath, Sullivan said, though she is not yet being forced to take that step.

“Based on information learned during discovery, the deposition of Mrs. Clinton may be necessary,” Sullivan said in an order on Wednesday. [READ THE ORDER BELOW] Discovery is the formal name for the evidence-gathering process, which includes depositions.

“If plaintiff believes Mrs. Clinton’s testimony is required, it will request permission from the Court at the appropriate time.”

The order, which came in the course of a lawsuit from conservative watchdog group Judicial Watch, leaves open the possibility that Clinton will be forced to answer detailed questions on the eve of her formal selection as the Democratic presidential nominee about her creation of the server.

Any deposition would surely roil the presidential race and force her campaign to confront the issue, which has dogged her for a year. “Her legal team is really going to fight that really hard,” predicted Matthew Whitaker, a former U.S. attorney who has raised questions about Clinton’s email setup.

“You have to take her deposition in this case to fully understand how it was designed and the whys and the what-fors.”

While leaving the door open to Clinton’s eventual deposition, Sullivan on Wednesday ordered at least six current and former State Department employees to answer questions from Judicial Watch, which has filed multiple lawsuits over the Clinton email case.

That list includes longtime Clinton aide Huma Abedin, former chief of staff Cheryl Mills, under secretary for management Patrick Kennedy, former executive secretary Stephen Mull and Bryan Pagliano, the IT official believed to be responsible for setting up and maintaining the server.

The judge also ordered the State Department to prepare a formal answer about Clinton’s emails. Donald Reid, a senior security official, may also be asked to answer questions, if Judicial Watch so decides.

That process is scheduled to be wrapped up within eight weeks, putting the deadline in the final week of June.

Judicial Watch brought suit against the State Department under the Freedom of Information Act (FOIA) in an effort to bring Abedin’s emails to light. The lawsuit has since evolved into a battleground over Clinton’s use of the private server.

Clinton’s Republican critics have repeatedly accused her of setting up the private server and then deleting roughly half its contents to evade public scrutiny. In the process, her critics say, Clinton may have made government secrets vulnerable to hackers.

The FBI and government inspectors general are conducting separate investigations related to the server, and the prospect that classified information might have been mishandled.

Clinton has said that she has yet to be contacted by the FBI to set up an interview as part of its investigation, despite long speculation that she will be.

But any deposition in the Judicial Watch case could frustrate that process for Clinton’s camp.

“You only want your client to tell their story once if at all,” said Whitaker. “If you’re going to stake out some ground in a deposition which is under oath, that’s really a dangerous opportunity to lay out a story that you say is true under penalty of perjury and then it might be used against you, ultimately, if you have to take the stand again.”

In his order, Sullivan pointed to revelations from the emails appearing to show officials trying to evade demands of FOIA.

In one email, for instance, Mull told Abedin that Clinton’s emails “would be subject to FOIA requests” if she used a department-issued BlackBerry, even though her identity would remain secret.

Abedin responded that the idea “doesn’t make a whole lot of sense.”

In February, Sullivan ruled that the evidence-gathering process could proceed, and the two sides have been haggling since then.

Sullivan had previously suggested that Clinton could be forced to respond to questions, but his order on Wednesday offered the clearest indication that it remains a real possibility.

In his order on Wednesday, Sullivan denied the organization’s efforts to combine his granting of depositions and a similar decision by another judge in a separate case.

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In part from National Law Journal: Clinton’s personal lawyer, Williams & Connolly of counsel David Kendall, declined to comment. A spokeswoman for the U.S. Department of Justice did not immediately return a request for comment.

If Clinton is subpoenaed to testify, she wouldn’t be the only presidential candidate personally involved in litigation.

In February, a District of Columbia Superior Court judge ordered Donald Trump to sit for a deposition in his lawsuit against celebrity chef Geoffrey Zakarian, who abandoned plans for a restaurant in Trump’s new hotel in downtown Washington.

Superior Court Judge Brian Holeman said that Trump’s campaign schedule wasn’t a shield against deposition. “Neither the rules nor the controlling authority create a special exception for individuals that that ‘may have a busy schedule’ as a result of seeking public office,” Holeman wrote.

Trump could also be called as a witness in cases in California and New York about Trump University, a now-closed for-profit institution accused of fraud. Trump, according to news reports, is on the witness list in the case in California, and New York Attorney General Eric Schneiderman has said that Trump would be an “essential” witness at trial. Read more.

 

Judicial Watch v Dept of State by Julian Hattem

$600 Billion, Failing Classrooms

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US Spends $600 Billion/Year on Education, But Large Majority of H.S. Seniors Not College-Ready

Hollingsworth/(CNSNews.com) – Despite the fact that the U.S. spends more than $600 billion per year on public education, a large majority of high school seniors are not ready for college-level work in math and reading, according to the latest results of the 2015 National Assessment of Educational Progress (NAEP), also known as “the nation’s report card”.

Demonstrating proficiency in a core subject like math or reading is considered proof of being academically prepared for college-level courses.

However, just 25 percent of 12th graders tested “Proficient” or above in math on the 2015 NAEP, down slightly from the 26 percent reported in 2013.

That means that three-quarters of the nation’s soon-to-be-graduating high school seniors are not prepared to succeed in college math courses.

Although more 12th graders (37 percent) tested “Proficient” or above in reading, that figure was also down one percent from the 2013 results.

According to NAEP, nearly two-thirds of high seniors do not have the written language skills they will need in college.

The average score of the 31,900 12th graders who took the 2015 NAEP math test was 152, which was down in all four content areas and one point lower than the average score (153) in 2013, Peggy Carr, acting commissioner of the National Center for Education Statistics (NCES), told reporters during a webinar on Wednesday announcing the latest NAEP results.

Only three percent of those taking the math assessment tested “Advanced.” Another 22 percent tested “Proficient”, with 37 percent of test-takers demonstrating a “Basic” mastery of mathematics.

However, the largest contingent – 38 percent – tested at the lowest “Below Basic” level. “There is a larger proportion of students at the bottom of the distribution” than in 2013, Carr acknowledged.

English Language Learners, who posted a six-point gain, were the only student sub-group to significantly increase their math scores over 2013 levels, she pointed out.

The average score in reading (287) was not significantly different from the average score reported in 2013 (288), Carr said.

Six percent of high school seniors scored in the “Advanced” reading category, with 31 percent testing “Proficient”, and 35 percent scoring in the “Basic” range.

However, 28 percent failed to demonstrate even basic mastery of the written word – three percent more than in 2013.

Carr noted that the 2015 NAEP results remained virtually unchanged for various racial and ethnic sub-groups compared to 2013. In general, white and Hispanic males tended to do better on the math tests, while females overall did better on the reading assessments, she pointed out.

Education experts also noted that average math scores were higher for students who took more challenging pre-calculus and calculus classes, and average reading scores were the highest for students who reported reading more than 20 pages of text a day in school or while doing their homework assignments.

When CNSNews.com asked how the latest reading and math NAEP scores compared to student test scores worldwide, Carr replied that “we will wait to see” when the next international results are released in November and December.

According to the latest available figures from NCES, “the 50 states and D.C. reported $603.7 billion in funding collected for public elementary and secondary education in 2013.”

State and local governments provided 91 percent of all education funding, while the federal government paid the remaining 9 percent.

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Don’t go away yet, there is more and it is worse.

Obama budgets $17,613 for every new illegal minor, more than Social Security retirees get

Paul Bedard, the Washington Examiner: President Obama has budgeted $17,613 for each of the estimated 75,000 Central American teens expected to illegally cross into the United States this year, $2,841 more than the average annual Social Security retirement benefit, according to a new report.

The total bill to taxpayers: $1.3 billion in benefits to “unaccompanied children,” more than double what the federal government spent in 2010, according to an analysis of the administration’s programs for illegal minors from the Center for Immigration Studies. The average Social Security retirement benefit is $14,772.

The report notes that the president’s budget, facing congressional approval, includes another $2.1 billion for refugees, which can include the illegals from Central America, mostly Honduras, Guatemala and El Salvador.

What’s more, the administration is also spending heavily on a program with the United Nations to help the illegal minors avoid the dangerous trip by declaring them refugees and handing them a plane ticket to the U.S. where, once here, they get special legal status.

The report, titled “Welcoming Unaccompanied Alien Children to the United States,” is a deep dive into the administration’s evolving efforts to let hundreds of thousands of mostly 16- and 17-year-old males settle in the country.

It said that most of the undocumented minors do not qualify for refugee status or are even in any danger in their native countries. Instead, they are seeking to unify with their family members, commonly parents in the United States illegally.

The report cited Department of Health and Human Services data showing the trend. “New data,” said CIS, “shows that 80 percent of the 71,000 Central American children placed between February 2014 and September 2015 were released to sponsors who are in the United States illegally.”

Go here for charts and full report.

Author Nayla Rush suggested that the administration’s Central American Refugee/Parole Program with the United Nations that declares minors refugees could have the effect of giving legal status to their illegal parents once in the U.S.

“Children will be able to qualify for refugee status and then be flown to the United States. As a reminder, refugees receive automatic legal status and are required to apply for a green card within their first year following arrival. They can apply for citizenship five years from the date of entry.

“Since parents from Central America illegally present in the United States could not benefit from the CAM program and sponsor their children, perhaps the reverse can take place with children admitted under this new version of the refugee program. Children, acquiring legal status followed by naturalization by the time they reach adulthood, could indeed sponsor their parents,” wrote Rush.

 

Clintons Paying Legal Fees for email Server Agent

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In 2014, the Hillary server domain registration was changed to Perfect Privacy, a proxy company that allows domain users to shield their identities. It’s a common practice among domain owners who don’t want their personal information listed on a public database.

Per Gawker: A source says at least two top Clinton aides used her private email accounts to conduct government business, putting their official communications outside the control of federal record-keeping regulations.

The source named Philippe Reines and Abedin as the employees who used Clinton’s private email addresses in the course of their agency duties.

Reines served as deputy assistant secretary of state, and Abedin as Clinton’s deputy chief of staff. They are two of Clinton’s most loyal confidantes in and out of the State Department, Gawker reported. More here.

Related: Lawyers for Hillary’s team

Report: Clintons Are Paying Legal Bills For Aide Who Registered Private Email Address

DailyCaller: The Clintons have paid “hundreds of thousands of dollars” to cover the legal bills for a Bill Clinton aide who sits at the center of the FBI’s investigation into Hillary Clinton’s private email server.

That’s according to Washington Times opinion editor Monica Crowley who reports in a new column that a knowledgeable source tells her that the Clintons are covering legal expenses for Justin Cooper, a longtime aide to the former president.

Such an arrangement would raise questions over whether the Clintons are paying Cooper’s bills in order to ensure that they have some oversight of his interactions with federal investigators. It would also raise questions about whether the Clintons are paying other aides’ legal costs.

Cooper registered clintonemail.com in his own name on Jan. 13, 2009. That email domain is the same one Hillary Clinton exclusively used to send work-related emails as secretary of state. Emails sent on that account were stored on a server that the Clintons kept at their personal residence in New York.

According to Crowley, Cooper’s role in helping set up Clinton’s mysterious email arrangement has put him in the FBI’s cross hairs. She reports:

A source familiar with Mr. Cooper’s arrangement with the Clintons tells me that they have paid his legal fees associated with the FBI investigation, amounting to “hundreds of thousands of dollars.” They aren’t paying those costs out of a sense of decency. They’re paying them because he knows the “why” of the server, which may very well have been to make it easier for the foundation to hustle big donations.

One wonders what, if anything, Mr. Cooper is telling the FBI —and whether the whole sordid Clinton house of cards will be left standing.

The FBI seized Clinton’s server last year after it was determined that some of her emails contained classified information. And now, investigators are reportedly poised to interview aides who have knowledge about the system.

And according to a Fox News report from earlier this year, the FBI’s investigation has expanded to a public corruption probe which centers on the intersection of the Clinton Foundation and State Department.

Cooper could also be embroiled in that aspect of the investigation, according to Crowley, who also works as a Fox News analyst.

The little-known Cooper has worked for the Clinton Foundation and Teneo Holdings, a consulting firm with close ties to the Clintons. Along with Doug Band — Bill Clinton’s former “body man,” a former counselor to the Clinton Foundation, and a co-founder of Teneo — Cooper kept in contact with Clinton’s State Department aides, emails from Clinton’s account show. One of those aides is Huma Abedin, who served as Clinton’s deputy chief of staff while also working for Teneo.

The overlap has raised questions over whether the Clinton Foundation and Teneo were using access to the State Department to help raise money and attract clients.

The possibility that the Clintons are paying legal bills for aides embroiled in the FBI investigation has already been broached by Congress.

Senate Judiciary Committee chairman Chuck Grassley has asked lawyers for the Clintons and Abedin — as well as for former Clinton aides Cheryl Mills, Philippe Reines, and Jake Sullivan — if they have entered any “joint defense agreements.”

The Iowa Republican has asserted that such arrangements could pose conflicts of interest because they would help ensure that the Clinton insiders refrained from providing evidence that could be detrimental to the Clintons.

The lawyers have refused to say if those arrangements have been made.

Grassley has also asked whether the Clintons are covering legal costs for Bryan Pagliano, the former information technology specialist who set up and managed Clinton’s private email server. But Pagliano’s lawyer, Mark MacDougall of the Clinton-connected law firm Akin Gump, has also refused to say if such an arrangement is in place. Pagliano has since entered an immunity deal with the FBI in exchange for his cooperation in the investigation.

Some evidence has emerged suggesting that the Clintons are paying legal bills for those embroiled in the email fiasco.

In October it was reported that the Denver-based IT company that handled Clinton’s server after she left the State Department had submitted an invoice to Clinton seeking payment for legal and public relations expenses.

The company, Platte River Networks, had control of Clinton’s server when it was turned over to the FBI. It billed Clinton’s accountant, Marcum LLP., nearly $50,000 for legal and PR expenses.

The Clinton campaign and the Clinton Foundation did not respond to The Daily Caller’s requests for comment.

 

 

 

Need to Know Facts on EB-5 Visa Program

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In 1999, yes under President Bill Clinton and selling out sovereignty under a globalist agenda:

   

FAS: The immigrant investor visa was created in 1990 to benefit the U.S. economy through employment creation and an influx of foreign capital into the United States. The visa is also referred to as the EB-5 visa because it is the fifth employment preference immigrant visa category. The EB-5 visa provides lawful permanent residence (i.e., LPR status) to foreign nationals who invest a specified amount of capital in a new commercial enterprise in the United States and create at least 10 jobs. The foreign nationals must invest $1,000,000, or $500,000 if they invest in a rural area or an area with high unemployment (referred to as targeted employment areas or TEAs).

There are approximately 10,000 visas available annually for foreign national investors and their family members (7.1% of the worldwide employment-based visas are allotted to immigrant investors and their derivatives). In FY2015, there were 9,764 EB-5 visas used, with 93% going to investors from Asia. More specifically, 84% were granted to investors from China and 3% were granted to those from Vietnam.

In general, an individual receiving an EB-5 visa is granted conditional residence status. After approximately two years the foreign national must apply to remove the conditionality (i.e., convert to full-LPR status). If the foreign national has met the visa requirements (i.e., invested and sustained the required money and created the required jobs), the foreign national receives full LPR status. If the foreign national investor has not met the requirements or does not apply to have the conditional status removed, his or her conditional LPR status is terminated, and, generally, the foreign national is required to leave the United States, or will be placed in removal proceedings.

In 1992, Congress established the Regional Center (Pilot) Program, which created an additional pathway to LPR status through the EB-5 visa category. Regional centers are “any economic unit, public or private, which [are] involved with the promotion of economic growth, including increased export sales, improved regional productivity, job creation, and increased domestic capital investment.” The program allows foreign national investors to pool their investment in a regional center to fund a broad range of projects within a specific geographic area. The investment requirement for regional center investors is the same as for standard EB-5 investors. As the use of EB-5 visas has grown, so has the use of the Regional Center Program. In FY2014, 97% of all EB-5 visas were issued based on investments in regional centers. Unlike the standard EB-5 visa category, which does not expire, the Regional Center Program is set to expire on September 30, 2016.

Different policy issues surrounding the EB-5 visa have been debated. Proponents of the EB-5 visa contend that providing visas to foreign investors benefits the U.S. economy, in light of the potential economic growth and job creation it can create. Others argue that the EB-5 visa allows wealthy individuals to buy their way into the United States.

In addition, some EB-5 stakeholders have voiced concerns over the delays in processing EB-5 applications and possible effects on investors and time sensitive projects. Furthermore, some have questioned whether U.S. Citizen and Immigration Services (USCIS) has the expertise to administer the EB-5 program, given its embedded business components. The Department of Homeland Security’s Office of the Inspector General (DHS OIG) has recommended that USCIS work with other federal agencies that do have such expertise, while USCIS has reported that it has taken steps internally to address this issue. USCIS has also struggled to measure the efficacy of the EB-5 category (e.g., its economic impact). USCIS methodology for reporting investments and jobs created has been called into question by both the DHS OIG and the U.S. Government Accountability Office (GAO).

 

Furthermore, some have highlighted possible fraud and threats to national security that the visa category presents. In comparison to other immigrant visas, the EB-5 visa faces additional risks of fraud that stem from its investment components. Such risks are associated with the difficulty in verifying that investors’ funds are obtained lawfully and the visa’s potential for large monetary gains, which could motivate individuals to take advantage of investors and can make the visa susceptible to the appearance of favoritism. USCIS has reported improvements in its fraud detection but also feels certain statutory limitations have restricted what it can do. Additionally, GAO believes that improved data collection by USCIS could assist in detecting fraud and keeping visa holders and regional centers accountable.

Lastly, the authority of states to designate TEAs has raised concerns. Some have pointed to the inconsistency in TEA designation practices across states and how it could allow for possible gerrymandering (i.e., all development occurs in an area that by itself would not be considered a TEA). Others contend that the current regulations allow states to determine what area fits their economic needs and allow for the accommodation of commuting patterns.

In addition to the issues discussed above, Congress may consider whether the Regional Center Program should be allowed to expire, be reauthorized, or made permanent, given its expiration on September 30, 2016. In addition, Congress may consider whether any modifications should be made to the EB-5 visa category or the Regional Center Program. Legislation has been introduced in the 114th Congress that would, among other provisions, amend the program to try to address concerns about fraud, and change the manner in which TEAs are determined. Other bills would create an EB-5-like visa category for foreign national entrepreneurs who do not have their own capital but have received capital from qualified sources, such as venture capitalists. Read more here.