Expectation of Lynch to Prosecute Hillary Dashed?

Would there be major chaos and embarrassment if FBI Director James Comey resigned over the Hillary Server-gate scandal? Is Comey at odds with his boss Loretta Lynch? He threatened to resign during the Bush administration….he is his own principled man.

Comey’s FBI makes waves

TheHill: The aggressive posture of the FBI under Director James Comey is becoming a political problem for the White House.

The FBI’s demand that Apple help unlock an iPhone used by one of the San Bernardino killers has outraged Silicon Valley, a significant source of political support for President Obama and Democrats.

Comey, meanwhile, has stirred tensions by linking rising violent crime rates to the Black Lives Matter movement’s focus on police violence and by warning about “gaps” in the screening process for Syrian refugees.

Then there’s the biggest issue of all: the FBI’s investigation into the private email server used by Hillary Clinton Obama’s former secretary of State and the leading contender to win the Democratic presidential nomination.

A decision by the FBI to charge Clinton or her top aides for mishandling classified information would be a shock to the political system.

In these cases and more, Comey — a Republican who donated in 2012 to Mitt Romney — has proved he is “not attached to the strings of the White House,” said Ron Hosko, the former head of the FBI’s criminal investigative division and a critic of Obama’s law enforcement strategies.

Publicly, administration officials have not betrayed any worry about the Clinton probe. They have also downplayed any differences of opinion on Apple.

But former officials say the FBI’s moves are clearly ruffling feathers within the administration.

With regards to the Apple standoff, “It’s just not clear [Comey] is speaking for the administration,” said Richard Clarke, a former White House counterterrorism and cybersecurity chief. “We know there have been administration meetings on this for months. The proposal that Comey had made on encryption was rejected by the administration.”

Comey has a reputation for speaking truth to power, dating back to a dramatic confrontation in 2004 when he rushed to a hospital to stop the Bush White House from renewing a warrantless wiretapping program while Attorney General John Ashcroft was gravely ill. Comey was Ashcroft’s deputy at the time.

That showdown won Comey plaudits from both sides of the aisle and made him an attractive pick to lead the FBI. But now that he’s in charge of the agency, the president might be getting more than he bargained for.

“Part of his role is to not necessarily be in lock step with the White House,” said Mitch Silber, a former intelligence official with the New York City Police Department and current senior managing director at FTI Consulting.

“He takes very seriously the fact that he works for the executive branch,” added Leo Taddeo, a former agent in the FBI’s cyber division. “But he also understands the importance of maintaining his independence as a law enforcement agency that needs to give not just the appearance of independence but the reality of it.”

The split over Clinton’s email server is the most politically charged issue facing the FBI, with nothing less than the race for the White House potentially at stake.

Obama has publicly defended Clinton, saying that while she “made a mistake” with her email setup, it was “not a situation in which America’s national security was endangered.”

But the FBI director has bristled at that statement, saying the president would not have any knowledge of the investigation. Comey, meanwhile, told lawmakers last week that he is “very close, personally,” to the probe.

Obama’s comments reflected a pattern, several former agents said, of the president making improper comments about FBI investigations. In 2012, he made similarly dismissive comments about a pending inquiry into then-CIA Director David Petraeus, who later pleaded guilty to a misdemeanor charge for giving classified information to his biographer, with whom he had a personal relationship.

“It serves no one in the United States for the president to comment on ongoing investigations,” Taddeo said. “I just don’t see a purpose.”

Hosko suggested that a showdown over potential criminal charges for Clinton could lead to a reprise of the famous 2004 hospital scene, when Comey threatened to resign.

“He has that mantle,” Hosko said. “I think now there’s this expectation — I hope it’s a fair one — that he’ll do it again if he has to.”

Comey’s independent streak has also been on display in the Apple fight, when his bureau decided to seek a court order demanding that the tech giant create new software to bypass security tools on an iPhone used by Syed Rizwan Farook, one of the two terrorist attackers in San Bernardino, Calif.

Many observers questioned whether the FBI was making an end-run around the White House, which had previously dismissed a series of proposals that would force companies to decrypt data upon government request.

“I think there’s actually some people that don’t think with one mindset on this issue within the administration,” said Sen. Tom Carper (D-Del.), the Senate Homeland Security Committee’s top Democrat, at a Tuesday hearing. “It’s a tough issue.”

While the White House has repeatedly backed the FBI’s decision, it has not fully endorsed the potential policy ramifications, leaving some to think a gap might develop as similar cases pop up. The White House is poised to soon issue its own policy paper on the subject of data encryption.

“The position taken by the FBI is at odds with the concerns expressed by individuals [in the White House] who were looking into the encryption issue,” said Neema Singh Guliani, a legislative counsel with the American Civil Liberties Union (ACLU).

This week, White House homeland security adviser Lisa Monaco tried to downplay the differences between the two sides. The White House and FBI are both grappling with the same problems, she said in a discussion at the Council on Foreign Relations.

“There is a recognition across the administration that the virtues of strong encryption are without a doubt,” Monaco said on Monday. “There is also uniformity about the recognition that strong encryption poses real challenges.”

But former officials see Comey as wanting to blaze his own trail on the topic.

“I have been very surprised at how public and inflammatory, frankly, the FBI and the Justice Department’s approach has been on this,” said Chris Finan, a former National Security Council cybersecurity adviser.

“That doesn’t tend to be the administration’s preferred approach to handling things.”

The Republican National Committee is suing Hillary and they are on the right track in one case for certain, those communications in her mobile devices.

FreeBeacon: he RNC is requesting communications between Clinton and her key aides, including Bryan Pagliano, her former IT staffer. Pagliano has reportedly received a limited immunity deal from the Department of Justice as part of its investigation into the transmission of classified information over Clinton’s private email server.

The committee is also seeking correspondence between State Department officials and the Clinton campaign that took place after Clinton stepped down from the department.

According to the RNC, it originally submitted public records requests for these documents last October and December, but the State Department has yet to turn over the records. The RNC filed the lawsuits on Wednesday in the U.S. District Court for the District of Columbia.

“The Obama Administration has failed to comply with records requests in a timely manner as required by law,” RNC chairman Reince Priebus said in a statement on Wednesday. “For too long the State Department has undermined the public and the media’s legitimate right to records under the Freedom of Information Act, and it’s time it complies with the law. If this administration claims to be the ‘most transparent in history,’ and Clinton the ‘most transparent person in public life,’ then they should prove it, release these records, and allow the American people to hold her accountable.”

The State Department is currently facing a number of legal proceedings seeking documents from Clinton’s tenure. The watchdog group Citizens United filed another lawsuit against the department on Monday requesting emails between Dennis Cheng, Clinton’s deputy chief of protocol, and Teneo Holdings, a consulting company run by Clinton confidante Doug Band.

Two lawsuits have been delayed due to the State Department’s discovery of thousands of previously unsearched documents from the executive secretary’s office, the Washington Free Beacon reported last week. The State Department said it could take until next fall to process the newly discovered records and turn them over to the plaintiffs.

AG Loretta Lynch Dodges Questions About Hillary Clinton Email Investigation

PJM: Attorney General Loretta Lynch suggested Wednesday that the Justice Department would not be obligated to pursue charges against Hillary Clinton for her email infractions even if the FBI recommends criminal charges.

 

Sen. John Cornyn (R-TX) brought up the topic during a Senate Judiciary Committee hearing on Wednesday:

“If the FBI were to make a referral to the Department of Justice to pursue a case by way of indictment and to convene a grand jury for that purpose, the Department of Justice is not required by law to do so, are they — are you?” Cornyn asked.Lynch didn’t answer directly, but seemed to indicate the department has some wiggle room, and can consult with officials before deciding what to do.

“It would not be an operation of law, it would be an operation of procedures,” Lynch said in reply. She added that the decision to pursue a criminal case would be “done in conjunction with the agents” involved in the investigation. “It’s not something that we would want to cut them out of the process.”

Lynch declined to answer Cornyn’s questions about the decision to grant immunity to Bryan Pagliano, the former Clinton aide who set up the private “homebrew” server at her home in Chappaqua, NY. Asked Cornyn:

If in fact this was immunity granted by a court, that had to be done under the auspices and with the approval of the Department of Justice, which you head.

Lynch answered:

We don’t discuss the specifics of any ongoing investigation. With respect to the procedure relating to any specific witness, I would not be able to comment. … With respect to Mr. Pagliano or anyone who has been identified as a potential witness in any case, I’m not able to comment on the specifics.

Later, Senator Lindsey Graham (R-SC) asked Lynch about comments made by White House Press Secretary Josh Earnest in January that downplayed the FBI investigation. Earnest had told reporters that “some officials” had said she was “not the target of the investigation,” and that an indictment did not seem to be the direction in which the case was trending:

“So when Josh Earnest speaks about the investigation and talks about, basically, to reassure the American people that this is no big deal, do you know where he gets that information from?” Graham asked.“Senator, I do not,” Lynch said.

“Would you tell him that he should just stay silent?” Graham pressed.

“Certainly it’s my hope when it comes to ongoing investigations that we would all stay silent,” Lynch responded.

In January, Fox News’ chief intelligence correspondent Catherine Herridge reported that her sources in the DOJ and FBI were “super pissed off” about Earnest’s comments.

 

Arms Dealers, Chicago, Middle East and the Donald

To gain top security clearance, the background investigations are rigorous and rightly so. The investigations are designed to ensure there are no nefarious relationships, events or people of which embarrassment and extortion are made of and most of all to ensure no future compromises are possible.

Can Donald Trump pass these investigations?

Phillydotcom: Donald Trump is another rich guy who doesn’t have it so easy. Trump, of course, is the real estate developer who, while he might not have the biggest fortune in the world, has one of the loudest. He brought his yacht, the Trump Princess, into Washington last week where commoners could gawk at it.

He bought the boat last year from Adnan Khashoggi, the arms dealer who is his chief rival for the title of World’s Most Obnoxious Zillionaire, for a mere $30 million. He did have to spend $10 million fixing it up, but everyone agreed it was a steal.

This is not your everyday run-of-the-mill millionaire’s yacht. It is roughly the size of Cleveland. It makes the president’s yacht, Sequoia, parked across the way, look like a dinghy. It has, among other things, two marble waterfalls in the formal dining room, which also features suede-covered walls and leather-tiled ceilings. It has a master bedroom suite with a walk-in closet, a leather barber chair, a sauna and a 600-pound pop-up bar made of solid onyx. It has a movie theater, a swimming pool, an exercise room, two 30- foot speedboats, as well as gold fixtures in the bathrooms. Oh, I almost forgot, also a discotheque with a marble dance floor. Also 210 phones.

Adnan Khashoggi enjoyed life beginning in the 1970’s. He created great wealth being an arms dealer and several years later, his fortune collapsed do to the scandals of BCCI, Bank of Credit and Commerce International, while he was also part of the Iran Contra Affair and played in investment circles that included Donald Trump and Ferdinand Marcos. A Saudi, Adnan’s father was an opportunists who was a vehicle dealer selling trucks toMuhammad bin Ladin, Osama’s father.

Then there was the time Trump financially screwed TV game show owner and entertainer, Merv Griffin. There is something about Trump applying Chicago tactics, a city that so enamored Trump he thought the ‘windy city’ would be a great place for another home. Additionally, Trump was looking for re-financing for his real estate project in Atlantic City. Banks and investors told Trump he could not use junk bonds to do so. ‘Oh, I would not do that, ever to keep the other investors’. Don’t look now but he did use junk bonds and the first missed debt payment came do and it was late. The junk bond market tanked.

In 2001, Chicago was booming or was it? Seems some seedy people saw opportunity.

Will big names, big egos, bring big trouble?

July 20, 2001|By David Greising.

ChicagoTribune: We now know Donald Trump and Marvin Davis are coming to town with big real estate deals. Mark my words: These won’t be the last out-of-gas 1980s egoists to make their move on Chicago.

Throwback titans are like ants that way: If you see one, there’s bound to be a whole colony.

Keep your eyes peeled and your hands on your wallets. Before you know it, Ivan Boesky will be betting on takeovers from deluxe office space in Marvin Davis’ new building.

Michael Milken will show up, too. He’ll reassemble his famous X-shaped trading desk inside Trump’s tower.

The top floor, no doubt. Which, given the expected skinniness of the soon-to-be Trump Spindle Chicago, should be about the size of an isolation cell at Cook County Jail. This should make Milken feel very much at home.

Both Milken and Boesky are felons banned from the securities business. I’ll bet you’re thinking they can’t possibly set up investment shops in the Trump and Davis spaces.

But no worry. Problem solved. If the Securities and Exchange Commission comes after them, Boesky will simply call his old defense lawyer, Harvey Pitt, who now just happens to be President Bush’s nominee to run–you guessed it–the SEC.

Watch for Marc Rich to revive his commodities business here. The Hunt brothers–best remembered as the men who killed the Chicago Board of Trade’s silver pit–will resume trading the not-very-precious metal.

Boone Pickens will make a comeback. He’ll resume haranguing CEOs and launch hostile takeovers against Ameritech, Amoco or First Chicago.

Wait a second. Those big names from the 1980s didn’t survive the mismanagement of the 1990s. Pickens will have to find a new target. Motorola, maybe.

High-finance hangers-on will come flocking in, too.

Milken will need a valet. This means Bill Farley will have a job again. After his embarrassing bust-out at Fruit of the Loom, Farley gets a second chance to be a Milken-made man.

And if Milken chooses to abandon the natural look and resume wearing the toupees he favored during the 1980s, he’ll need an experienced wig dresser. Someone who really knows fashion. Revlon’s Ron Perelman would be just the person for the job.

The Davis name will lure some tarnished glitterati from the days when the one-time wildcatter owned 20th Century Fox. Sylvester Stallone, Arnold Schwarzenegger and Bruce Willis will sell Davis on a new restaurant concept: “Planet Washed Up Movie Star.”

Former Beatrice deal maven Jim Dutt will work the grill. John Sculley can sell the Pepsi. Former R.J. Reynolds chief Ross Johnson will probably even try to sell cigarettes.

It won’t all be gravy and glory for Trump and Davis. Merv Griffin will stop by–not to star in a TV show, but to rag on Trump for bankrupting the Taj Mahal Casino after he wrestled it away from Merv.

And another Davis, Al, will come into town. The longtime Oakland Raiders owner hasn’t seen a winning Raiders team since the 1980s, but that won’t stop him from chiding Marvin Davis for his failed effort to bring an NFL team to Inglewood, Calif.

Before you know it, junk bonds will trade in the Board of Trade’s pits. It will get so raucous the FBI will send undercover agents to investigate again. And just as they did in the 1980s, they’ll come out full of suspicions but mostly empty handed of criminal convictions.

And this time, the feds will be fighting some new top-notch legal talent. Attorneys who know the way the government thinks when it goes under cover into the pits. Dan Webb and Tony Valukas will be the go-to lawyers on the traders’ defense side.

This is the life that awaits Chicago now that Davis and Trump are coming to town.

Mayor Daley has embraced the idea. He met with Trump and emerged visibly awed by the glint of Trump’s celebrity. Or maybe that was just the glare from the top of Trump’s head.

Trump says he may even make Chicago his second home. Consider the way Chicago could become with Trump and Davis in town, and you’ve got to wonder: Is that a promise, or a threat?

Upon Trump’s announcement for the Oval Office, he filed this 92 page financial disclosure.  There are countless companies in Trump name variations, some successful, others not at all but all over the globe including Turkey, Qatar and Azerbaijan.

In closing, one final point needs to be made. Where does Trump have his products made? He has been outsourcing since 2006.

WashingtonExaminer; Donald Trump has been offshoring the production of Trump-brand products since 2006, despite his unrelenting criticism of companies that send jobs overseas, according to a new report.

The report comes less than a week after Trump was caught defending outsourcing as “not always a terrible thing” and sometimes “a necessary step” in a 2005 blog post unearthed by Buzzfeed News.

Trump-brand products have been outsourced to China, Japan, Honduras and Brazil as well as European countries Norway, Italy and Germany since 2006, according to data collected by ImportGenius, a company that gathers information related to exports and imports.

Everything from slippers and men’s shirts to ballpoint pens and “Trump body soap” has come to the U.S. from Asian and South American countries, the data shows. Trump has previously admitted that clothes such as ties, which belong to his menswear line, are manufactured in China and Mexico. Full article here.

WH: All FOIA Requests Require WH Scrutiny

Being snarky, but just how many in the Obama administration got the early heads up….Hillary? Kerry? Holder? Jackson? Rahm?

It Took a FOIA Lawsuit to Uncover How the Obama Administration Killed FOIA Reform

By Jason Leopold

The Obama administration has long called itself the most transparent administration in history. But newly released Department of Justice (DOJ) documents show that the White House has actually worked aggressively behind the scenes to scuttle congressional reforms designed to give the public better access to information possessed by the federal government.

The documents were obtained by the Freedom of the Press Foundation, a nonprofit organization that supports journalism in the public interest, which in turn shared them exclusively with VICE News. They were obtained using the Freedom of Information Act (FOIA) — the same law Congress was attempting to reform. The group sued the DOJ last December after its FOIA requests went unanswered for more than a year.

The documents confirm longstanding suspicions about the administration’s meddling, and lay bare for the first time how it worked to undermine FOIA reform bills that received overwhelming bipartisan support and were unanimously passed by both the House and Senate in 2014 — yet were never put up for a final vote.

Moreover, a separate set of documents obtained by VICE News in response to a nearly two-year-old FOIA request provides new insight into how the Securities and Exchange Commission and the Federal Trade Commission (FTC) also tried to disrupt Congress’s FOIA reform efforts, which would have required those agencies to be far more transparent when responding to records requests.

The disclosures surface days before Sunshine Week, an annual celebration of open government, and a renewed effort by the House and Senate to improve the FOIA by enacting the very same reforms contained in the earlier House and Senate bills — the seventh attempt in at least 10 years by lawmakers to amend the transparency law. But the administration is again working to derail the legislation, according to congressional staffers.

The FOIA Oversight and Implementation Act of 2014, co-sponsored by then–House Oversight and Government Reform Committee Chairman Darrell Issa and ranking member Elijah Cummings, would have codified into law Obama’s presidential memorandum, signed on his first day in office in 2009, that instructed all government agencies to “adopt a presumption in favor of disclosure, in order to renew their commitment to the principles embodied in FOIA, and to usher in a new era of open Government.” (Attorney General Eric Holder issued a set of guidelines to federal agencies a couple of months later that explained how the presumption of disclosure should be implemented.)

Additionally, the legislation called for the implementation of a centralized online portal, overseen by the Office of Management and Budget (OMB), to handle all FOIA requests and required government agencies to update their FOIA regulations. The bill unanimously passed by a vote of 410-0, one of the few pieces of legislation during President Barack Obama’s tenure to receive bipartisan support.

But the administration “strongly opposed passage” of the House bill and opposed nearly every provision that would have made it easier for journalists, historians, and the public to access government records. The White House claimed it would increase the FOIA backlog, result in astronomical costs, and cause unforeseen problems with processing requests, according to a secret six-page DOJ set of talking points turned over to the Freedom of the Press Foundation along with 100 pages of internal DOJ emails about the FOIA bill.

“The Administration views [the House bill] as an attempt to impose on the Executive Branch multiple administrative requirements concerning its internal management of FOIA administration, which are not appropriate for legislative intervention and would substantially increase costs and cause delays in FOIA processing,” the talking points say. “The Administration believes that the changes… are not necessary and, in many respects, will undermine the successes achieved to date by diverting scarce processing resources.”

US Justice Department talking points on the FOIA bill that went nowhere despite bipartisan support in Congress

Remarkably, the talking points go on to say that the DOJ opposed the administration’s own instructions that called on agencies to act with the “presumption of openness” as stipulated in Holder’s guidelines and Obama’s presidential memo. The DOJ, they said, would “strongly oppose” any attempts to codify it into law. Instead, the DOJ touted a December 2013 “National Action Plan” to “modernize” FOIA and make it more efficient, saying that effort went far enough. But that had little to do with forcing the government to be more transparent.

“If this memo reflects thinking of the White House, than I have to question their commitment to transparency,” said Anne Weismann, the executive director of The Campaign for Accountability and a leader in the effort to reform FOIA. “The notion that these changes are going to increase the FOIA backlog, increase costs, and increase problems with FOIA is ludicrous. The breadth of their objections and lack of evidence to back up their claims and their absolute opposition to codifying Obama’s memo expose the lie that is the administration’s policy…. If the president and this administration believes in their stated FOIA policy they should be supporting an effort to codify it.”

Notably, the DOJ’s talking points also shed light on the ongoing turf war between the Office of Information Policy and the independent Office of Government Information Services (OGIS), also known as the FOIA ombuds office, which provides requesters with mediation services. Congressional efforts to expand OGIS’s role, as cited in the bill, were interpreted by DOJ to be an encroachment on its powers. The DOJ went so far as to claim that empowering another agency to improve FOIA administration was unconstitutional.

DOJ spokeswoman Beverley Lumpkin told VICE News that the Justice Department is “committed to the Freedom of Information Act and dedicated to improving transparency and open government.” When asked about DOJ’s opposition to FOIA reform, she said, “It is not uncommon for subject matter experts to provide feedback on technical aspects of proposed legislation and potential unintended consequences.”

‘The FOIA reform bill was incredibly modest and had the unanimous support of both parties — something that almost never happens.’

When the Senate took up its version of the 2014 FOIA reform bill, co-sponsored by Democratic Senator Patrick Leahy and Republican Senator John Cornyn, it was much stronger than the House’s version. Importantly, the Senate bill would have transformed the most overused and abused FOIA exemption — there are nine total — that government agencies routinely cite to deny requesters access to records: Exemption 5, also known as the deliberative process privilege, which covers “inter-agency or intra-agency memorandums or letters,” drafts, and attorney-client records.

Exemption 5 is referred to by open government advocates as the “Withhold it because you want to exemption.”

The discretionary exemption has been cited to justify the withholding of countless documents, such as a half-century old CIA history of the Bay of Pigs invasion and an internal CIA study on the agency’s torture program, on grounds that they are not “final decisions.” The reform bill would have authorized the release of records that fell under Exemption 5 after 25 years and it would have introduced a “foreseeable harm” standard, requiring government agencies to demonstrate the harm that would result from the disclosure of records; currently, they need only cite a specific FOIA exemption to justify the withholding of records. It too was unanimously passed by the Senate.

But everything died in the House in December 2014 after then–Speaker John Boehner failed to bring up the final version for a vote. Rumors soon began to surface that the DOJ, the SEC, and the FTC, prodded by banking lobbyists, worked behind the scenes and lobbied lawmakers not to bring the legislation up for a vote. The DOJ used the same talking points to sound alarm bells about the Senate bill.

“This FOIA reform bill was incredibly modest, had already been watered down, and had the unanimous support of both parties — something that, in today’s political climate, almost never happens,” said Trevor Timm, executive director of the Freedom of Press Foundation. “Transparency advocates have been very cynical of the Obama administration’s claim that they’re the ‘most transparent ever’… but the fact that they opposed virtually every aspect of this bill is sadly a new low.”

Tracking down hard evidence to back up claims about the administration’s intervention proved to be extremely difficult. So the Freedom of the Press Foundation and VICE News used the very law at issue — FOIA — to obtain answers.

“It took the Freedom of Information Act to provide evidence of what many felt but could not prove: that the Department of Justice ‘strongly opposes’ fixing the Freedom of Information Act,” said Nate Jones, the director of the FOIA project at George Washington University’s National Security Archive. “The released talking points make clear that on the one hand, DOJ ensures agencies do the bare minimum to comply with the FOIA’s requirements and paints a misleadingly rosy picture during congressional testimony, while [on] the other it secretly works to block Congress’s attempts to release more records to more people more quickly.

“It’s no wonder FOIA requests take decades to process and tens of thousands of pages are improperly withheld when the DOJ — the agency envisioned in 1966 to be the watchdog tasked to “encourage compliance” — is actually working to stymie reform.”

Last year, in testimony before the House Oversight and Government Reform Committee, Melanie Pustay, who heads the DOJ’s Office of Information Policy (OIP), which is supposed to ensure that all government agencies adhere to Holder’s guidelines, told lawmakers that the DOJ is doing a great job with FOIA. She graded the agency five out five on “presumption of openness.”

“Five out of five, on an effective system in place for responding. Proactive disclosure. Are you kidding me?” Committee Chairman Jason Chaffetz asked Pustay. “The Department of Justice gives themselves a five out of five on proactive disclosure. You really think anybody in the world believes the Department of Justice is the most — they’re at the top of their game, they got an A-plus, five for five? Do you really believe that?”

“I do,” Pustay responded. “I absolutely do.”

“You live in la-la land,” Chaffetz responded. “That’s the problem.”

[I also testified before the committee last year and discussed the problems with the FOIA, pointing to OIP’s failure to enforce Holder’s guidelines.]

Emails that were included with the talking points turned over to the Freedom of the Press Foundation also show that most congressional staffers were not heeding DOJ’s dire warnings and did not bow to the intense lobbying campaign by DOJ officials in the Office of Legislative Affairs about what would happen if the bill were passed.

But one lawmaker made a fuss: Senator Jeff Sessions. The deputy chief counsel for Sessions, Rachael Tucker, who had placed a hold on the 2014 bill, said the Republican lawmaker was concerned that reforms to Exemption 5 would harm attorney-client privilege if documents potentially including that info could no longer be withheld after 25 years. The email makes clear that Sessions’ opposition was partially the result of the DOJ’s lobbying, and that the Senate would not support any attempt by Sessions to try and strip the provision from the bill.

A Senate Judiciary Committee report from February 2015 noted that the DOJ and the National Association of Assistant United States Attorneys contacted Sessions and objected to the FOIA reform legislation, specifically the overhaul to Exemption 5. Moreover, during a House Oversight and Government Reform Subcommittee hearing that month, Representative Elijah Cummings said the DOJ had contacted lawmakers to voice opposition to the FOIA reform bill.

Tucker emailed an official at the DOJ’s Office of Legislative Affairs and asked, “I’m wondering if extending the [25-year] sunset would be something DOJ could support. Maybe making it 40 years or something? Do you have any suggestions or thoughts?”

A response from DOJ, if there was one, was not included in the cache of documents. Sessions eventually relented and removed the hold and voted in favor of the Senate bill. But congressional sources told VICE News he’s now the lone lawmaker who placed a hold on the new version of the Senate FOIA reform bill, raising the very same concerns about Exemption 5 that he did two years ago. It’s unclear why he is holding up passage of the bill again. A spokesperson for the senator did not respond to requests for comment.

VICE News filed separate FOIA requests with the DOJ, FTC, and SEC seeking documents about conversations officials may have had with members of Congress about the 2014 FOIA reform bills. It took more than a year to obtain responsive records from the agencies. In the case of the FTC, it required VICE News to file a formal appeal challenging the integrity of the agency’s search after the FTC initially turned over just a handful of documents. Eleven months after we lodged the appeal, the FTC said it found an additional 900 pages of emails and produced those.

As if to underscore why Congress has been aggressive in its attempt to reform Exemption 5, the FTC redacted 95 percent of the emails — citing Exemption 5.

Still, there are a few noteworthy takeaways. The emails reveal that the the regulatory agency raised red flags about the FOIA reform bill, issuing warnings to lawmakers — notably Democratic Senator Jay Rockefeller — about how its passage would stymie the FTC and SEC’s ability to protect American consumers from financial fraud and other abuses.

Before the Senate sent its version of the FOIA reform bill to the floor for a full vote, Rockefeller placed a hold on the legislation, claiming that unnamed “experts” with whom he’d consulted told him parts of the bill would “greatly aid corporate defendants and undermine law enforcement efforts,” one of his staffers told VICE News at the time.

The emails reveal that Rockefeller reached out to government agencies and requested they articulate their concerns about the bill in a joint letter, suggesting there was far more coordination between the executive branch and Congress on efforts to thwart passage of the bill than had been previously reported.

Additionally, the emails show that Jeanne Bumpus, director of the FTC’s Office of Congressional Relations, wrote to her colleagues and said she contacted Leahy and left messages for his staff “reiterating serious concerns and seeking more information abut the timing and content of the [FOIA] bill to be considered.”

A spokesperson for Leahy, who has historically been a staunch advocate for transparency, said the Senator was unavailable to comment. When the Senate bill was not put up for a vote, he released a statement saying, “In a political climate as divided as this, I had hoped that we would come together in favor of something as fundamental to our democracy as the public’s right to know.”

Jones told VICE News that the the emails “confirm what we knew at the time: that some at the FTC and other ‘independent regulatory agencies’ with little knowledge of FOIA used vague, incorrect warnings at the last minute to try to kill the FOIA bill.”

“Throughout the correspondence — ironically marred with huge exemption 5 redaction boxes — there is not a single tangible example of how this bill could harm the FTC or other agencies mission,” Jones said. “[There is] just vague scare phrases such as ‘compromise public interest investigatory or litigation strategies’ or ‘make it more difficult to obtain information from sources.'”

Prior to the passage of the Senate bill, a handful of lawmakers who sit on the Senate Banking Committee said they were informed that the reform bill would loosen the FOIA’s Exemption 8, which protects information pertaining to financial regulatory institutions. But it was all a ruse, prompted by the SEC, to force the Senate to specifically state on the record that Exemption 8 would not lead to the release of more information about financial institutions that would otherwise be protected from disclosure under Exemption 8.

In one email VICE News obtained, the SEC’s chief FOIA officer, John Livornese, remarked to a colleague after the Senate memorialized its position in a report, “Just when you thought exemption 8 couldn’t get any stronger,” meaning the SEC could continue to withhold information under that exemption.

Chaffetz, who co-sponsored the latest FOIA reform bill passed by the House in January, told VICE News in a statement that the Obama administration’s promises of transparency have never materialized.

“President Obama promised the ‘most transparent’ administration in history. I see no evidence to support that statement,” Chaffetz said. “Time and time again this administration has aggressively thwarted efforts for a more open and transparent government.”

*****

If you are so inclined to review over 1000 responsive pages and names with text, click here.

 

Lynch Keeping WH in Dark on Hillary Email Case?

Clinton emails: GOP sues, senators press attorney general

WASHINGTON (AP) — Attorney General Loretta Lynch said Wednesday she hasn’t discussed the FBI investigation into Hillary Clinton’s emails with the White House and doesn’t plan to.

The investigation deals with the potential mishandling of sensitive information that passed through the former secretary of state’s private email server, and Lynch’s assurance to the Senate Judiciary Committee came shortly after the GOP sued for access to Clinton’s emails.

The two lawsuits spring from Freedom of Information Act requests filed last year seeking copies of emails and text messages sent or received by the Democratic presidential candidate and her top aides. In court filings, the GOP says it has not received any documents in response to the requests.

The GOP litigation brings the total to at least 34 civil suits so far involving requests for federal records related to Clinton’s service as secretary of state between 2009 and 2013. The Associated Press is among those with a pending case at the Washington courthouse.

“For too long the State Department has undermined the public and the media’s legitimate right to records under the Freedom of Information Act, and it’s time it complies with the law,” RNC Chairman Reince Priebus said.

The State Department has released more than 52,000 pages of Clinton’s work-related emails, but her private lawyers have withheld thousands more that they deemed to be personal communications unrelated to her job. Also left unresolved are questions about how Clinton and her closest aides handled classified information.

State Department spokesman John Kirby said the department was aware of the RNC lawsuit but would not comment on pending litigation.

“We take court orders seriously, but I can’t go into predictions about our ability to produce what’s in these suits in a specific time frame,” he said.

The AP last year discovered Clinton’s use of the private email server, which had been set up in the basement of Clinton’s New York home by former State Department staffer Bryan Pagliano, for her to use exclusively for her work-related emails while she was secretary.

The FBI for months has investigated whether sensitive information that flowed through Clinton’s email server was mishandled. The State Department has acknowledged that some emails included classified information, including at the top-secret level. Clinton has said she never sent or received anything that was marked classified at the time.

The inspectors general at the State Department and for U.S. intelligence agencies are separately investigating whether rules or laws were broken.

Republican senators questioned Lynch on Wednesday about whether she had discussed the FBI’s investigation with President Barack Obama or anyone at the White House, alluding to comments in January from White House spokesman Josh Earnest that Clinton herself was not at risk of being charged with a crime.

“No, sir, I have not,” she replied adding that she did not anticipate doing so in the future.

Asked by Sen. Lindsey Graham, R-S.C., whether she would advise Earnest to “just stay silent” about the investigation, she replied, “Certainly it’s my hope that when it comes to ongoing investigations that we all would stay silent.”

She said she didn’t know where he was getting his information.

“I can assure you that neither I nor anyone from the department has briefed Mr. Earnest or anyone at the White House about this matter,” or other law enforcement investigations, she said.

Lynch was also asked about media reports that the Justice Department had offered Pagliano immunity from criminal prosecution in exchange for his cooperation. Pagliano previously declined to testify before Congress, citing his Fifth Amendment rights against self-incrimination.

Sen. Chuck Grassley, the committee chairman, asked Lynch whether Pagliano’s immunity offer carried over to congressional committees. Grassley, R-Iowa, wants to recall Pagliano to testify if he has received immunity.

Lynch declined to answer the question.

“We don’t go into the details of the agreements that we have with any witness in any matter in ongoing investigations,” the attorney general said.

“The consistency with which the department handles the ongoing matters, whether they involve someone with a famous last name or not, is something that we take very seriously,” Lynch said. “We treat them the same, and that is how the public has confidence in the investigations that we conduct.”

Trump and the Phony “Job-Creating” EB-5 Scam

Thank you Michelle, I hope those dedicated researchers that did all that grand work on Obama, too late in the game, don’t do it a second time….

Malkin: Ugh: Trump and the Phony “Job-Creating” EB-5 Green Card Racket

By: Michelle Malkin

CR: Whelp. It appears that one of Donald Trump’s projects helped make America great… by soliciting an estimated $50 million from Chinese investors using the fraud-riddled EB-5 green card program for politically connected cronies.

This is the same racket exploited by Virginia Gov. Terry McAuliffe, lobbied for by Nevada Sen. Harry Reid and DHS official Alejandro Mayorkas, and embraced by South Dakota Republican officials. It’s a scam I’ve reported on for years.

Bloomberg News has the new story on how EB-5 funded a Trump-branded tower in New Jersey. In a nutshell:

Trump Bay Street is a 50-story luxury rental apartment building being built by Kushner Companies, whose chief executive officer, Jared Kushner, is married to Trump’s daughter Ivanka. It will have an outdoor pool, indoor golf simulator and sweeping views of Lower Manhattan; it adjoins an existing high rise condo, Trump Plaza Residence. The firm that was hired to seek investors, US Immigration Fund, is run by Florida developer Nicholas Mastroianni, who announced a partnership last year with a Trump golf course in Jupiter, Florida.

The visa program is known as EB-5. In exchange for investing at least $500,000 in a project promising to create jobs, foreigners receive a two-year visa with a good chance of obtaining permanent residency for them and their families. In 2014, the most recent year for which records are available, the U.S. issued 10,692 of these visas — 85% to people from China.

The Jersey City project has raised $50 million, about a quarter of its funding, from loans obtained through EB-5, according to a slide presentation by US Immigration Fund. Mark Giresi, general counsel of US Immigration Fund, said he believed nearly all of the EB-5 investors in the Trump project were from China.

A Trump spokesperson said the presidential candidate was not a partner in the financing deal. A Kushner flack told Bloomberg News the project was “entirely legal and creating jobs.”

But in my longtime investigations and in Sold Out, my book with John Miano, the evidence is clear: EB-5’s job creation claims are as phony and manufactured as fuzzy porkulus math, H-1B lobbyists’ math, and corporate welfare/economic development subsidies math.

Since 2001, I’ve warned about the systemic and bipartisan corruption of America’s EB-5 immigrant investor visa program. The program puts America up for sale to the most politically connected bidders.

Created under an obscure section of the expansionist Immigration Act of 1990, EB-5 promised bountiful economic development for the U.S. in exchange for granting permanent residency (and eventual American citizenship) to foreign investors. The law allows 10,000 alien entrepreneurs a year to obtain green cards by investing between $500,000 and $1 million in new commercial enterprises or troubled businesses. After two years, foreign investors, their spouses, and their children can receive “conditional permanent resident” status for two years and a gateway to permanent U.S. citizenship.

Originally, the law required individual investments in commercial enterprises to directly generate at least 10 new full-time jobs. Investors were expected to manage the businesses themselves and dedicate some of the newly-created jobs to exports. Failure would mean loss of their money and their business. In 1992, Congress created the “Immigrant Investor Pilot Program” and established government-approved EB-5 “regional centers” — specially selected business groups and corporate entities designated to administer EB-5 investments and oversee a much more relaxed definition of job creation.

The idea was to pool investor funds in a defined industry and targeted region to promote economic growth. Under this loan model, the regional center would recruit and collect funding from a group of foreign investors, then turn around and lend the money to selected projects at a low interest rate. The project would then pay off the loan over an agreed period of time. In targeted areas of high unemployment, the threshold for investment was lowered.

There are currently 614 such regional centers approved by the feds. Participation in the program has risen from 5,748 visa winners in 2008 to 22,444 in 2014. EB-5 participants in these joint ventures can fulfill job-creation requirements if they “create or preserve” either direct jobs or “indirect” jobs shown to be “created collaterally or as a result of capital invested in a commercial enterprise affiliated with a regional center by an EB-5 investor.” The five-year “pilot program,” which has been reauthorized routinely since its inception, was extended last year until September 2016.

As John and I reported, early EB-5 boosters used various theoretical multipliers to hype the program’s benefits, predicting that “4 million millionaire investors along with family members, would sign up, bringing in $4 billion in new investments and creating 40,000 jobs [annually].” In 2011, President Obama’s Council on Job Competitiveness regurgitated the same, old figures in its call to “radically expand” the program:

If the EB-5 program reaches maximum capacity, it could result annually in the creation of approximately 4,000 new businesses, $2 billion to $4 billion of foreign investment capital, and create 40,000 jobs.

But in practice, like so many of the Beltway’s immigration programs, EB-5’s ever-evolving regulations are Byzantine and arbitrary. Fraud and abuse are rampant. Unsurprisingly, the purported economic benefits of EB-5 are woefully dubious. One sensible journalist, Charles Lane, put the EB-5 promoters’ claims in proper perspective:

“Sounds impressive,” he explained, “until you realize that foreign investment in the United States totals $2.5 trillion and that the program’s fuzzy job-creation count includes jobs ‘indirectly’ attributable to the investment. EB-5 would be dubious policy even if it could claim five times that impact. Simply put, it is corporate welfare — yet another attempt to subsidize the flow of capital into politically favored channels.”

Center for Immigration Studies analyst David North adds that “foreign investment comes to the United States routinely, in large volume, with minuscule help from EB-5.” In 2010, he observed, total foreign investment in the United States increased by $1.9 trillion, according to the U.S. Department of Commerce. Based on the investors’ green card applications filed two years after the first investment, North estimated that “EB-5 investment that year was about $191 million, and that was a well above-average year for the program. So, for every $100 of increased foreign investment that year, the EB-5 program contributed about one penny [emphasis added].”

Beltway cronyism was embedded in EB-5’s DNA from the get-go. The original Democratic House sponsor and his spokesman went on to establish for-profit companies that marketed the program and provided consulting services. Former federal immigration officials from the George H.W. Bush administration formed lucrative limited partnerships to cash in on their access and EB-5 expertise.

Key supporters of the original immigrant investor visa program included Democrat Sens. Ted Kennedy, D-Mass., and Paul Simon, D-Ill. Big Government Republicans embraced it, too. Prescott Bush, George W. Bush’s uncle, was on the board of American Immigration Services, one of the leading EB-5 visa vendors. So was former President Bush’s Immigration and Naturalization Service commissioner, Gene McNeary. GOP Sen. Mitch McConnell worked closely with the woman who was instrumental in drafting the EB-5 law: Maria Hsia.

That final name should ring a bell. Hsia was a Simon and McConnell donor identified by the House Governmental Affairs Committee as “an agent of the Chinese government.” In 2000, she was found guilty by a federal jury of laundering more than $100,000 in illegal donations to the Democratic National Committee through the infamous Hsi Lai Buddhist temple in California. At the time, Funny Money Honey Hsia was working for McConnell and others on the 1990 immigration bill, she also worked for a campaign fund-raising group called the Pacific Leadership Council. Hsia co-founded the PLC with Lippo Bank officials John Huang and James Riady, the chief figures in the Clinton-Gore Donorgate scandal convicted of campaign-finance crimes. At least six Lippo Bank officials reportedly benefited from the EB-5 law. Hsia partnered with former Democratic Rep. Bruce A. Morrison of Connecticut, an immigration lawyer, author of the 1990 Immigration Act in the House, and main sponsor of EB-5. After leaving Congress to run (unsuccessfully) for governor in Connecticut, Morrison formed a business to market the investor visa program.

An entire side industry of economic book-cookers has arisen to supply analyses of the “job creation” benefits of EB-5 projects and to gerrymander Census employment data to fit the program’s definition of “targeted employment areas” in order to qualify for lower investment thresholds (as was done in New York City’s Atlantic Yards/Pacific Park EB-5 deal).

Think Solyndra and federal stimulus math on steroids.

How does Trump respond to the debunking of the bogus job-creation math upon which the entire cash-for-citizenship swindle rests? Have any other Trump projects been subsidized by EB-5 China money? Where are the other GOP candidates on the issue and will they join Capitol Hill calls to kill the program?

If the RNC-organized, corporate media-controlled GOP debates weren’t such clown shows, maybe American voters could get some answers.