Keep this post in your bookmarks as we enter into the 2020 general election….
Primer:
1. China plants industrial espionage operatives in the U.S. that steal government contract secrets and sell them back to China. FBI caught at least one.
2. Through cyber espionage, China has stolen much of the F-35 technology, more than 50 terabytes.
3. John Kerry and Joe Biden did exactly the same thing as Hillary…sold access for money while exploiting it all as diplomatic missions with the title(s) of bi-lateral agreements.
4. Subpoena former Treasury Secretary Jack Lew and ask him about the CFIUS approvals of Chinese back enterprises. We may surely need to go back to former Treasury Secretary, Tim Geithner, did he set the table for all this with Obama’s approval creating that ‘Asia Pivot‘?
5. What does Congress know about foreign investments and when do they know it? They get reports, but who is asking questions, anyone?
NYP: Joe Biden and John Kerry have been pillars of the Washington establishment for more than 30 years. Biden is one of the most popular politicians in our nation’s capital.
His demeanor, sense of humor, and even his friendly gaffes have allowed him to form close relationships with both Democrats and Republicans. His public image is built around his “Lunch Bucket Joe” persona. As he reminds the American people on regular occasions, he has little wealth to show for his career, despite having reached the vice presidency.
One of his closest political allies in Washington is former senator and former Secretary of State John Kerry. “Lunch Bucket Joe” he ain’t; Kerry is more patrician than earthy. But the two men became close while serving for several decades together in the US Senate. The two “often talked on matters of foreign policy,” says Jules Witcover in his Biden biography.
So their sons going into business together in June 2009 was not exactly a bolt out of the blue.
But with whom their sons cut lucrative deals while the elder two were steering the ship of state is more of a surprise.
What Hunter Biden, the son of America’s vice president, and Christopher Heinz, the stepson of the chairman of the Senate Committee on Foreign Relations (later to be secretary of state), were creating was an international private equity firm. It was anchored by the Heinz family alternative investment fund, Rosemont Capital. The new firm would be populated by political loyalists and positioned to strike profitable deals overseas with foreign governments and officials with whom the US government was negotiating.
Hunter Biden, Vice President Joe Biden’s youngest son, had gone through a series of jobs since graduating from Yale Law School in 1996, including the hedge-fund business.
By the summer of 2009, the 39-year-old Hunter joined forces with the son of another powerful figure in American politics, Chris Heinz. Senator John Heinz of Pennsylvania had tragically died in a 1991 airplane crash when Chris was 18. Chris, his brothers, and his mother inherited a large chunk of the family’s vast ketchup fortune, including a network of investment funds and a Pennsylvania estate, among other properties. In May 1995, his mother, Teresa, married Senator John Kerry of Massachusetts. That same year, Chris graduated from Yale, and then went on to get his MBA from Harvard Business School.
Joining them in the Rosemont venture was Devon Archer, a longtime Heinz and Kerry friend.
The three friends established a series of related LLCs. The trunk of the tree was Rosemont Capital, the alternative investment fund of the Heinz Family Office. Rosemont Farm is the name of the Heinz family’s 90-acre estate outside Fox Chapel, Pennsylvania.
The small fund grew quickly. According to an email revealed as part of a Securities and Exchange Commission investigation, Rosemont described themselves as “a $2.4 billion private equity firm co-owned by Hunter Biden and Chris Heinz,” with Devon Archer as “Managing Partner.”
The partners attached several branches to the Rosemont Capital trunk, including Rosemont Seneca Partners, LLC, Rosemont Seneca Technology Partners, and Rosemont Realty.
Of the various deals in which these Rosemont entities were involved, one of the largest and most troubling concerns was Rosemont Seneca Partners.
Rather than set up shop in New York City, the financial capital of the world, Rosemont Seneca leased space in Washington, DC. They occupied an all-brick building on Wisconsin Avenue, the main thoroughfare of exclusive Georgetown. Their offices would be less than a mile from John and Teresa Kerry’s 23-room Georgetown mansion, and just two miles from both Joe Biden’s office in the White House and his residence at the Naval Observatory.
Over the next seven years, as both Joe Biden and John Kerry negotiated sensitive and high-stakes deals with foreign governments, Rosemont entities secured a series of exclusive deals often with those same foreign governments.
Some of the deals they secured may remain hidden. These Rosemont entities are, after all, within a private equity firm and as such are not required to report or disclose their financial dealings publicly.
Some of their transactions are nevertheless traceable by investigating world capital markets. A troubling pattern emerges from this research, showing how profitable deals were struck with foreign governments on the heels of crucial diplomatic missions carried out by their powerful fathers. Often those foreign entities gained favorable policy actions from the United States government just as the sons were securing favorable financial deals from those same entities.
Nowhere is that more true than in their commercial dealings with Chinese government-backed enterprises.
Rosemont Seneca joined forces in doing business in China with another politically connected consultancy called the Thornton Group. The Massachusetts-based firm is headed by James Bulger, the nephew of the notorious mob hitman James “Whitey” Bulger. Whitey was the leader of the Winter Hill Gang, part of the South Boston mafia. Under indictment for 19 murders, he disappeared. He was later arrested, tried, and convicted.
James Bulger’s father, Whitey’s younger brother, Billy Bulger, serves on the board of directors of the Thornton Group. He was the longtime leader of the Massachusetts state Senate and, with their long overlap by state and by party, a political ally of Massachusetts Senator John Kerry.
Less than a year after opening Rosemont Seneca’s doors, Hunter Biden and Devon Archer were in China, having secured access at the highest levels. Thornton Group’s account of the meeting on their Chinese-language website was telling: Chinese executives “extended their warm welcome” to the “Thornton Group, with its US partner Rosemont Seneca chairman Hunter Biden (second son of the now Vice President Joe Biden).”
The purpose of the meetings was to “explore the possibility of commercial cooperation and opportunity.” Curiously, details about the meeting do not appear on their English-language website.
Also, according to the Thornton Group, the three Americans met with the largest and most powerful government fund leaders in China — even though Rosemont was both new and small.
The timing of this meeting was also curious. It occurred just hours before Hunter Biden’s father, the vice president, met with Chinese President Hu in Washington as part of the Nuclear Security Summit.
There was a second known meeting with many of the same Chinese financial titans in Taiwan in May 2011. For a small firm like Rosemont Seneca with no track record, it was an impressive level of access to China’s largest financial players. And it was just two weeks after Joe Biden had opened up the US-China strategic dialogue with Chinese officials in Washington.
On one of the first days of December 2013, Hunter Biden was jetting across the Pacific Ocean aboard Air Force Two with his father and daughter Finnegan. The vice president was heading to Asia on an extended official trip. Tensions in the region were on the rise.
The American delegation was visiting Japan, China, and South Korea. But it was the visit to China that had the most potential to generate conflict and controversy. The Obama administration had instituted the “Asia Pivot” in its international strategy, shifting attention away from Europe and toward Asia, where China was flexing its muscles.
For Hunter Biden, the trip coincided with a major deal that Rosemont Seneca was striking with the state-owned Bank of China. From his perspective, the timing couldn’t have been better.
Vice President Biden, Hunter Biden and Finnegan arrived to a red carpet and a delegation of Chinese officials. Greeted by Chinese children carrying flowers, the delegation was then whisked to a meeting with Vice President Li Yuanchao and talks with President Xi Jinping.
Hunter and Finnegan Biden joined the vice president for tea with US Ambassador Gary Locke at the Liu Xian Guan Teahouse in the Dongcheng District in Beijing. Where Hunter Biden spent the rest of his time on the trip remains largely a mystery. There are actually more reports of his daughter Finnegan’s activities than his.
What was not reported was the deal that Hunter was securing. Rosemont Seneca Partners had been negotiating an exclusive deal with Chinese officials, which they signed approximately 10 days after Hunter visited China with his father. The most powerful financial institution in China, the government’s Bank of China, was setting up a joint venture with Rosemont Seneca.
The Bank of China is an enormously powerful financial institution. But the Bank of China is very different from the Bank of America. The Bank of China is government-owned, which means that its role as a bank blurs into its role as a tool of the government. The Bank of China provides capital for “China’s economic statecraft,” as scholar James Reilly puts it. Bank loans and deals often occur within the context of a government goal.
Rosemont Seneca and the Bank of China created a $1 billion investment fund called Bohai Harvest RST (BHR), a name that reflected who was involved. Bohai (or Bo Hai), the innermost gulf of the Yellow Sea, was a reference to the Chinese stake in the company. The “RS” referred to Rosemont Seneca. The “T” was Thornton.
The fund enjoyed an unusual and special status in China. BHR touted its “unique Sino-US shareholding structure” and “the global resources and network” that allowed it to secure investment “opportunities.” Funds were backed by the Chinese government.
In short, the Chinese government was literally funding a business that it co-owned along with the sons of two of America’s most powerful decision makers.
The partnership between American princelings and the Chinese government was just a beginning. The actual investment deals that this partnership made were even more problematic. Many of them would have serious national security implications for the United States.
In 2015, BHR joined forces with the automotive subsidiary of the Chinese state-owned military aviation contractor Aviation Industry Corporation of China (AVIC) to buy American “dual-use” parts manufacturer Henniges.
AVIC is a major military contractor in China. It operates “under the direct control of the State Council” and produces a wide array of fighter and bomber aircraft, transports, and drones — primarily designed to compete with the United States.
The company also has a long history of stealing Western technology and applying it to military systems. The year before BHR joined with AVIC, the Wall Street Journal reported that the aviation company had stolen technologies related to the US F-35 stealth fighter and incorporated them in their own stealth fighter, the J-31. AVIC has also been accused of stealing US drone systems and using them to produce their own.
In September 2015, when AVIC bought 51 percent of American precision-parts manufacturer Henniges, the other 49 percent was purchased by the Biden-and-Kerry-linked BHR.
Henniges is recognized as a world leader in anti-vibration technologies in the automotive industry and for its precise, state-of-the-art manufacturing capabilities. Anti-vibration technologies are considered “dual-use” because they can have a military application, according to both the State Department and Department of Commerce.
The technology is also on the restricted Commerce Control List used by the federal government to limit the exports of certain technologies. For that reason, the Henniges deal would require the approval of the Committee on Foreign Investment in the United States (CFIUS), which reviews sensitive business transactions that may have a national security implication.
According to BHR internal documents, the Henniges deal included “arduous and often-times challenging negotiations.” The CFIUS review in 2015 included representatives from numerous government agencies including John Kerry’s State Department.
The deal was approved in 2015.
Excerpted with permission from “Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends,” by Peter Schweizer, published by Harper Collins. The book goes on sale March 20.
Category Archives: Clinton Fraud
Pritzker, Boxer, Sherman and MoveOn.org, the Strike Force
The top person on John Kerry’s Iran JPOA team was Wendy Sherman. But then we have Obama’s dear friend Penny Pritzker in the mix too, along with Barbara Boxer and Hillary’s Jake Sherman all part of this National Security Action team, which is all things against Trump. So, while we do have the Director of MoveOn in the mix…this group likely has some robust funding from Soros.
This is a strike force that even includes Jeremy Bash.
He served as Chief of Staff of the CIA (2009-2011) and Defense Department (2011-2013), was Panetta’s right hand person and perhaps we should remember it was Panetta that allowed Hollywood access to top secret information to make a movie, that Zero Dark Thirty movie.
According to a June 15, 2011, email from Benjamin Rhodes, Deputy National Security Advisor for Strategic Communications, the Obama White House was intent on “trying to have visibility into the UBL (Usama bin Laden) projects and this is likely a high profile one.”
Ben Rhodes the aspiring novelist became Obama’s top advisor even when Rhodes security clearance was denied.
In early July 2012, Obama’s senior White House adviser on Iran, Puneet Talwar, and Secretary of State Hillary Clinton’s right-hand man, Jake Sullivan, arrived in the sleepy Arabian sultanate of Oman, 150 miles across sparkling Gulf waters from the Iranian coast. It was the first significant back-channel contact with Tehran.
FNC: A group of about 50 former Obama administration officials recently formed a think tank called National Security Action to attack the Trump administration’s national security policies.
The mission statement of the group is anything but subtle: “National Security Action is dedicated to advancing American global leadership and opposing the reckless policies of the Trump administration that endanger our national security and undermine U.S. strength in the world.”
National Security Action plans to pursue typical liberal foreign policy themes such as climate change, challenging President Trump’s leadership, immigration and allegations of corruption between the president and foreign powers.
This organization uses the acronym NSA, which is ironic. Three of its founding members – Ben Rhodes, Susan Rice and Samantha Power – likely were involved in abusing intelligence from the federal NSA (National Security Agency) to unmask the names of Trump campaign staff from intelligence reports and to leak NSA intercepts to the media to hurt Donald Trump politically. This included a leak to the media of an NSA transcript in February 2017 of former National Security Adviser Michael Flynn’s discussion with Russian Ambassador to the U.S. Sergei Kislyak. No one has been prosecuted for this leak.
Given the likely involvement of Rhodes, Rice and Power to weaponize intelligence against the Trump presidential campaign, will their anti-Trump NSA issue an apology for these abuses?
It is interesting that the new anti-Trump group says nothing in its mandate about protecting the privacy of Americans from illegal surveillance, preventing the politicization of U.S. intelligence agencies or promoting aggressive intelligence oversight. Maybe this is because the founders plan to abuse U.S. intelligence agencies to spy on Republican lawmakers and candidates if they join a future Democratic administration.
It takes a lot of chutzpah for this group of former Obama officials, who were part of the worst U.S. foreign policy in history, to condemn the current president’s successful international leadership and foreign policy.
After all, ISIS was born on President Obama’s watch because of his mismanagement of the U.S. withdrawal from Iraq and his “leading from behind” Middle East policy. The Syrian civil war spun out of control because of the incompetence of President Obama and his national security team.
This was a team that provided false information to the American people about the 2012 terrorist attack on the U.S. consulate in Benghazi and the nuclear deal with Iran. I wonder if the anti-Trump NSA will include videos on its website of former National Security Adviser Susan Rice falsely claiming on five Sunday morning news shows in September 2012 that the attack on the Benghazi consulate was “spontaneous” and in response to an anti-Muslim video.
And of course there’s the North Korean nuclear and missile programs that surged during the Obama years due to the administration’s “Strategic Patience” policy, an approach designed to kick this problem down the road to the next president. Because of President Obama’s incompetence, North Korean dictator Kim Jong Un may have an H-bomb that he soon will be able to load onto an intercontinental ballistic missile to attack the United States.
It must appall this group of former Obama national security officials that President Trump is succeeding as he undoes everything they worked on.
ISIS will soon control no territory in Iraq or Syria because of the Trump administration’s intensified attacks on it and arming of Kurdish militias.
In sharp contrast to President Obama, President Trump drew a chemical weapons red line in Syria and enforced it.
North Korea is pushing for talks with the U.S. in response to strong United Nations sanctions the U.S. worked to obtain in 2017. And compliance with the new sanctions has been significantly improved, especially by China, as the result of President Trump’s actions.
President Trump repaired the damage done to U.S.-Israel relations by President Obama and has recognized Jerusalem as the capital of Israel – something several previous presidents promised but failed to do.
Iranian harassment of U.S. ships in the Persian Gulf stopped in 2017, likely due to the more assertive Iran policy of President Trump. This includes the president’s successful effort to build a stronger U.S. relationship with Saudi Arabia.
President Trump is right when he says he inherited a mess on national security from the Obama administration. This is because President Obama and his national security team undermined U.S. credibility and left President Trump a much more dangerous world. I doubt the new anti-Trump National Security Action think tank will succeed in convincing Americans otherwise.
DoJ’s Bruce Ohr Demoted Again, Project Cassandra?
That’s it? On second thought, keep him employed to cough up the goods on Project Cassandra. More on that below. As an aside, in late December, Jeff Sessions ordered a complete review of Project Cassandra.
FNC: A Justice Department official demoted late last year for concealing his meetings with the men behind the anti-Trump “dossier” has been stripped of yet another title, Fox News has learned.
Bruce Ohr is no longer head of the Organized Crime Drug Enforcement Task Force.
Separately, sources familiar with the discussions tell Fox News that the Justice Department is expected to comply with demands from the House Intelligence Committee to provide Ohr for an interview. He is scheduled to visit the committee on Jan. 17, sources said.
Fox News first reported in December that Ohr had been demoted from the position of associate deputy attorney general, after it was revealed he had conducted undisclosed meetings with dossier author Christopher Steele and Glenn Simpson of Fusion GPS, the opposition research firm that produced the salacious document.
Fox News also reported that his wife Nellie Ohr worked for Fusion GPS, specifically on research related to the dossier.
At the time of his demotion, DOJ officials told Fox News that Bruce Ohr had been “wearing two hats,” and would fall back to his other title and portfolio – as head of OCDETF.
Now, Ohr has been stripped of that role as well; former deputy director Thomas Padden is now acting director. It is unclear where Ohr has landed, only that he is still an employee with the Department of Justice.
One DOJ insider joked that Ohr might end up in “one of those offices without a phone.”
Fox News has also confirmed that Bruce Ohr, as the head of OCDETF, was directly involved with Project Cassandra, the interagency investigation spearheaded by the DEA that tracked a massive international drug and money laundering scheme allegedly run by Hezbollah.
The project recently was the subject of a critical and lengthy Politico report looking at how the Obama administration may have hampered the investigation. Those closest to Project Cassandra, including Derek Maltz, the now-retired supervisory DEA agent who was a major player in the operation, claim the project and its potential prosecutions were sidelined by senior Obama administration officials who didn’t want to upset Iran in the lead-up to the historic nuclear deal with Tehran in 2015.
Attorney General Jeff Sessions has promised to look into what happened with the investigation.
He said in a statement last month: “While I am hopeful that there were no barriers constructed by the last admission to allowing DEA agents to fully bring all appropriate cases under Project Cassandra, this is a significant issue for the protection of Americans. We will review these matters and give full support to investigations of violent drug trafficking organizations.”
Sources close to the attorney general told Fox News that he was recently made aware of Ohr’s role in Project Cassandra and that Sessions is personally involved in the review and frequently asks for updates.
The 76 page criminal complaint for Project Cassandra is here.
Hezbollah Business Affairs Component 85 tons of cocaine was sold to Los Zetas one of the most violent Mexican cartels. Bruce Ohr was head of the teams assigned to Project Cassandra.
The United States Drug Enforcement Administration (DEA) (2016) announced significant enforcement activity including arrests targeting Lebanese Hizballah’s External Security Organization Business Affairs Component (BAC), which is involved in international criminal activities such as drug trafficking and drug proceed money laundering. These proceeds are used to purchase weapons for Hizballah for its activities in Syria. This ongoing investigation spans the globe and involves numerous international law enforcement agencies in seven countries, and once again highlights the dangerous global nexus between drug trafficking and terrorism.
This effort is part of DEA’s Project Cassandra, which targets a global Hizballah network responsible for the movement of large quantities of cocaine in the United States and Europe. This global network, referred to by law enforcement as the Lebanese Hizballah External Security Organization Business Affairs Component (BAC), was founded by deceased Hizballah Senior Leader Imad Mughniyah and currently operates under the control of Abdallah Safieddine and recent U.S.-designated Specially Designated Global Terrorist (SDGT) Adham Tabaja. Members of the Hizballah BAC have established business relationships with South American drug cartels, such as La Oficina de Envigado, responsible for supplying large quantities of cocaine to the European and United States drug markets. Further, the Hizballah BAC continues to launder significant drug proceeds as part of a trade based money laundering scheme known as the Black Market Peso Exchange.
“These drug trafficking and money laundering schemes utilized by the Business Affairs Component provide a revenue and weapons stream for an international terrorist organization responsible for devastating terror attacks around the world,” said DEA Acting Deputy Administrator Jack Riley. “DEA and our international partners are relentless in our commitment to disrupt any attempt by terrorists and terrorist organizations to leverage the drug trade against our nations. DEA and our partners will continue to dismantle networks who exploit the nexus between drugs and terror using all available law enforcement mechanisms.”
Beginning in February 2015, based on DEA investigative leads, European authorities initiated an operation targeting the network’s criminal activities in that region. Since then, law enforcement authorities, closely supported by DEA, have uncovered an intricate network of money couriers who collect and transport millions of euros in drug proceeds from Europe to the Middle East. The currency is then paid in Colombia to drug traffickers using the Hawala disbursement system. A large portion of the drug proceeds was found to transit through Lebanon, and a significant percentage of these proceeds are benefitting terrorist organizations, namely Hizballah.
This investigation is a result of leads developed during the investigation into the Lebanese Canadian Bank.
The combination of aggressive international law enforcement investigations and Treasury’s ongoing sanctions (see below) pressure shows the scope of the global commitment to diminish the ability of Hizballah and its financial supporters to move funds worldwide.
Enforcement Action
With DEA and Customs and Border Protection (CBP) working closely with foreign counterparts in France, Germany, Italy and Belgium, authorities arrested top leaders of the European cell of this Lebanese Hizballah External Security Organization BAC last week. The most significant arrest was of the U.S.-designated SDGT Mohamad Noureddine, a Lebanese money launderer who has worked directly with Hizballah’s financial apparatus to transfer Hizballah funds via his Lebanon-based company Trade Point International S.A.R.L. and maintained direct ties to Hizballah commercial and terrorist elements in both Lebanon and Iraq.
The CPB National Targeting Center partnered with DEA and international counterparts such as Europol in this investigation. CBP’s continued cooperation with the DEA , and European law enforcement counterparts is a vital component in dismantling complex global drug trafficking and money laundering networks as well as enhancing the security of the United States border.
U.S. Treasury Sanctions
Separately, the U.S. Department of the Treasury announced sanctions last week targeted Hizballah’s financial support network by designating Hizballah-affiliated money launderers Noureddine and Hamdi Zaher El Dine, as well as Trade Point International S.A.R.L, a company owned or controlled by Noureddine, pursuant to Executive Order 13224. This order targets terrorists and those providing support to terrorists or acts of terrorism. Noureddine and El Dine were designated for providing financial services to or in support of Hizballah, a Specially Designated Global Terrorist. Trade Point International S.A.R.L. was designated for being owned or controlled by Noureddine. As a result of Treasury’s action, all assets of the designated individuals or entities that are located in the United States or in the possession or control of U.S. persons are frozen, and U.S. persons are generally prohibited from engaging in transactions with them.
As part of its designation, Adam J. Szubin, Acting Under Secretary for Terrorism and Financial Intelligence, stated that, “Hizballah needs individuals like Mohamad Noureddine and Hamdi Zaher El Dine to launder criminal proceeds for use in terrorism and political destabilization. We will continue to target this vulnerability, and expose and disrupt such enablers of terrorism wherever we find them.”
Participating offices and agencies:
DEA Philadelphia, DEA Miami, DEA Newark, DEA New York, DEA Special Operations Division, DEA Bilateral Investigative Unit, DEA country offices in Europe, as well as Bogota and Cartagena
U.S. Customs and Border Protection
U.S. Treasury Financial Crimes Enforcement Network (FinCEN)
U.S. Treasury Office of Foreign Assets Control (OFAC)
EUROPOL
EUROJUST
Huma Abedin Shared Official Passwords
A grand jury in the Northern District of California has indicted four defendants, including two officers of the Russian Federal Security Service (FSB), for computer hacking, economic espionage and other criminal offenses in connection with a conspiracy, beginning in January 2014, to access Yahoo’s network and the contents of webmail accounts. The defendants are Dmitry Aleksandrovich Dokuchaev, 33, a Russian national and resident; Igor Anatolyevich Sushchin, 43, a Russian national and resident; Alexsey Alexseyevich Belan, aka “Magg,” 29, a Russian national and resident; and Karim Baratov, aka “Kay,” “Karim Taloverov” and “Karim Akehmet Tokbergenov,” 22, a Canadian national and a resident of Canada.
The defendants used unauthorized access to Yahoo’s systems to steal information from about at least 500 million Yahoo accounts and then used some of that stolen information to obtain unauthorized access to the contents of accounts at Yahoo, Google and other webmail providers, including accounts of Russian journalists, U.S. and Russian government officials and private-sector employees of financial, transportation and other companies. One of the defendants also exploited his access to Yahoo’s network for his personal financial gain, by searching Yahoo user communications for credit card and gift card account numbers, redirecting a subset of Yahoo search engine web traffic so he could make commissions and enabling the theft of the contacts of at least 30 million Yahoo accounts to facilitate a spam campaign.
***
Enter Hillary Clinton, Sidney Blumenthal and Huma Abedin….
Huma Abedin forwarded sensitive State Department emails, including passwords to government systems, to her personal Yahoo email account before every single Yahoo account was hacked, a Daily Caller News Foundation analysis of emails released as part of a lawsuit brought by Judicial Watch shows.
Abedin, the top aide to former Secretary of State Hillary Clinton, used her insecure personal email provider to conduct sensitive work. This guarantees that an account with high-level correspondence in Clinton’s State Department was impacted by one or more of a series of breaches — at least one of which was perpetrated by a “state-sponsored actor.”
The U.S. later charged Russian intelligence agent Igor Sushchin with hacking 500 million Yahoo email accounts. The initial hack occurred in 2014 and allowed his associates to access accounts into 2015 and 2016 by using forged cookies. Sushchin also worked for the Russian investment bank Renaissance Capital, which paid former President Bill Clinton $500,000 for a June 2010 speech in Moscow.
A separate hack in 2013 compromised three billion accounts across multiple Yahoo properties, and the culprit is still unclear. “All Yahoo user accounts were affected by the August 2013 theft,” the company said in a statement.
Abedin, Clinton’s deputy chief of staff, regularly forwarded work emails to her personal [email protected] address. “She would use these accounts if her (State) account was down or if she needed to print an email or document. Abedin further explained that it was difficult to print from the DoS system so she routinely forwarded emails to her non-DoS accounts so she could more easily print,” an FBI report says.
Abedin sent passwords for her government laptop to her Yahoo account on Aug. 24, 2009, an email released by the State Department in September 2017 shows.
Long-time Clinton confidante Sid Blumenthal sent Clinton an email in July 2009 with the subject line: “Important. Not for circulation. You only. Sid.” The message began “CONFIDENTIAL… Re: Moscow Summit.” Abedin forwarded the email to her Yahoo address, potentially making it visible to hackers.
The email was deemed too sensitive to release to the public and was redacted before being published pursuant to the Judicial Watch lawsuit. The released copy says “Classified by DAS/ A/GIS, DoS on 10/30/2015 Class: Confidential.” The unredacted portion reads: “I have heard authoritatively from Bill Drozdiak, who is in Berlin…. We should expect that the Germans and Russians will now cut their own separate deals on energy, regional security, etc.”
The three email accounts Abedin used were [email protected], [email protected], and [email protected]. Though the emails released by the State Department partially redact personal email addresses, the Yahoo emails are displayed as humamabedin[redacted].
Clinton forwarded Abedin an email titled “Ambassadors” in March 2009 from Denis McDonough, who served as foreign policy adviser to former President Barack Obama’s campaign and later as White House chief of staff. The email was heavily redacted before being released to the public.
Stuart Delery, chief of staff to the deputy attorney general, sent a draft memo titled “PA/PLO Memo” in May 2009, seemingly referring to two Palestinian groups. The content was withheld from the public with large letters spelling “Page Denied.” Abedin forwarded it to her Yahoo account.
Abedin routed sensitive information through Yahoo multiple times, such as notes on a call with the U.N. secretary-general, according to messages released under the lawsuit.
Contemporaneous news reports documented the security weaknesses of Yahoo while Abedin continued to use it. Credentials to 450,000 Yahoo accounts had been posted online, a July 2012 CNN article reported. Five days later, Abedin forwarded sensitive information to her personal Yahoo email.
Abedin received an email “with the subject ‘Re: your yahoo acct.’ Abedin did not recall the email and provided that despite the content of the email she was not sure that her email account had ever been compromised,” on Aug. 16, 2010, an FBI report says.
The FBI also asked her about sending other sensitive information to Yahoo. “Abedin was shown an email dated October 4, 2009 with the subject ‘Fwd: US interest in Pak Paper 10-04’ which Abedin received from [redacted] and then forwarded to her Yahoo email account…. At the time of the email, [redacted] worked for Richard Holbrooke who was the Special Representative for Afghanistan and Pakistan (SRAP). Abedin was unaware of the classification of the document and stated that she did not make judgments on the classification of materials that she received,” the report said.
The U.S. charged Sushchin with hacking half a billion Yahoo accounts in March 2017, in one of the largest cyber-breaches in history, the Associated Press reported. Sushchin was an intelligence agent with Russia’s Federal Security Service — the successor to the KGB — and was also working as security director for Renaissance Capital, Russian media said.
“It is unknown to the grand jury whether [Renaissance] knew of his FSB affiliation,” the indictment says.
Renaissance Capital paid Bill Clinton $500,000 for a speech in 2010 that was attended by Russian officials and corporate leaders. The speech received a thank-you note from Russian President Vladimir Putin. Renaissance Capital is owned by Russian oligarch Mikhail Prokhorov, who also owned the Brooklyn Nets basketball team. He unsuccessfully ran for Russian president against Putin in 2012.
Sushchin’s indictment says “the conspirators sought access to the Yahoo, Inc. email accounts of Russian journalists; Russian and U.S. government officials,” and others. Information about the accounts such as usernames and password challenge questions and answers were stolen for 500 million accounts, the indictment says. The indictment does not mention Abedin’s account.
A hacker called “Peace” claimed to be selling data from 200 million Yahoo users.
The user data also included people’s alternate email addresses, that were often work accounts tying a Yahoo user to an organization of interest. The hackers were able to generate “nonces” that allowed them to read emails “via external cookie minting” for some accounts.
The New York Times reported that in the 2013 hack, which affected all Yahoo accounts, “Digital thieves made off with names, birth dates, phone numbers and passwords of users that were encrypted with security that was easy to crack. The intruders also obtained the security questions and backup email addressed used to reset lost passwords — valuable information for someone trying to break into other accounts owned by the same user, and particularly useful to a hacker seeking to break into government computers around the world.”
Yahoo published a notification on Sept. 22, 2016, saying: “Yahoo has confirmed that a copy of certain user account information was stolen from the company’s network in late 2014 by what it believes is a state-sponsored actor.”
Clinton downplayed the risks of her email use days later, saying it was simply a matter of convenience.
“After a year-long investigation, there is no evidence that anyone hacked the server I was using and there is no evidence that anyone can point to at all, anyone who says otherwise has no basis, that any classified materials ended up in the wrong hands. I take classified materials very seriously and always have,” Clinton said on Oct. 9, 2016, at the second presidential debate,
Abedin’s use of Yahoo email is consistent with the determination by the FBI that Clinton associates’ emails were, in fact, compromised. “We do assess that hostile actors gained access to the private email accounts of individuals with whom Secretary Clinton was in regular contact from her private account,” then-FBI director Jim Comey said in 2016.
The Plotting Begins to Surface at FBI/DoJ
Primer:
(Washington, DC) – Judicial Watch today released Justice Department records showing that FBI Deputy Director Andrew McCabe did not recuse himself from the investigation into former Secretary of State Hillary Clinton’s unsecure, non-government email server until Tuesday, November 1, 2016, one week prior to the presidential election. The Clinton email probe was codenamed “Midyear Exam.”
While working as Assistant Director in Charge of the Washington Field Office, McCabe controlled resources supporting the investigation into former Secretary of State Hillary Clinton’s email scandal. An October 2016 internal FBI memorandum labeled “Overview of Deputy Director McCabe’s Recusal Related To Dr. McCabe’s Campaign for Political Office,” details talking points about McCabe’s various potential conflicts of interest, including the FBI’s investigation of Clinton’s illicit server, which officially began in July 2015:
While at [Washington Field Office] did Mr. McCabe provide assistance to the Clinton investigation?
Related reading: Nunes blasts DOJ, FBI for ‘failure’ to produce records relating to anti-Trump dossier
After the referral was made, FBI Headquarters asked the Washington Field Office for personnel to conduct a special investigation. McCabe was serving as [Assistant Director] and provided personnel resources. However, he was not told what the investigation was about. In February 2016 McCabe became Deputy Director and began overseeing the Clinton investigation.
The Overview also shows if asked whether McCabe played any role in his wife’s campaign, the scripted response was: “No. Then-[Assistant Director] McCabe played no role, attended no events and did not participate in fundraising or support of any kind.” More here.
Related reading: Russia never stopped its cyberattacks on the United States
Wider context:
Why do heads seem to be rolling—or at least tilting—at the Department of Justice and FBI?
Eight high ranking Department of Justice and FBI officials have been removed, reassigned or are rumored to be leaving. They include the top FBI agents who worked on two of the agency’s most high-profile investigations in the past two years: the probe into Hillary Clinton’s mishandling of classified information as secretary of state, and the Trump-Russia collusion investigation.
There’s been a great deal of news coverage about allegations of collusion between President Trump and Russia; much of the reporting apparently accurate and some of it not.
Less attention has been given to concurrent investigations that seem to be claiming scalps even if indirectly.
The investigations into the investigators include Congressional inquiries and a multi-faceted probe launched by Department of Justice Inspector General Michael Horowitz surrounding the FBI decision not to prosecute Clinton. Specifically, Horowitz—who was appointed by President Obama—said he’s reviewing:
- Allegations that FBI Deputy Director Andrew McCabe and Assistant Attorney General Peter Kadzik should have recused themselves.
- Allegations of improper political contacts by Kadzik.
- Allegations that Justice Department and FBI employees improperly disclosed non-public information and were influenced by improper considerations in releasing certain documents just before the 2016 election.
Below are some of the players. Their inclusion in this article does not imply any wrongdoing. None of those mentioned are formally accused of any improper activities. Their past or pending job status may not be related to the controversies discussed. To the extent that any have commented, they firmly deny any misconduct and are staunchly defended by supporters and colleagues.
Fired: Sally Yates, Deputy Attorney General
Sally Yates, former Deputy Attorney General
Alleged philosophical mutiny for failing to defend presidential order on immigration; alleged politically-motivated “unmaskings.”
Under questioning from Congress, Yates admitted that as Deputy Attorney General under Loretta Lynch, she engaged in the sensitive practice of unmasking and reviewing classified documents from “Trump, his associates or any member of Congress.” Later, as Acting Attorney General, Yates ordered Justice Department attorneys not to defend President Trump’s ban on certain Muslim visitors from entering the U.S.
Latest: President Trump fired Yates in January 2017. She was both praised and criticized for her stance on the travel ban. Since her firing, Yates has attacked President Trump in public referring to him as as “shamelessly unpatriotic,” saying he has “indifference to truth,” and claiming his “respect for the rule of law” is “in tatters.”
Departed: Peter Kadzik, Department of Justice liaison to Congress, Assistant Attorney General for Legislative Affairs.
Peter Kadzik, former Justice Dept. Asst. Attorney General
Alleged conflicts of interest with the Hillary Clinton campaign and alleged disclosure of nonpublic information for political reasons.
During the FBI investigation of Hillary Clinton, Kadzik appeared to tip off Clinton presidential campaign chairman John Podesta about two issues: an upcoming hearing where a Justice Department official would be asked about the Clinton emails, and the timing of the release of some Clinton emails. Kadzik previously worked for Podesta as an attorney. He denied any wrongdoing.
Latest: Kadzik left the Justice Department in January 2017 and works in private practice.
“Retiring”: Andrew McCabe, FBI Deputy Director
Failure to exclude himself from leading the Hillary Clinton email probe despite alleged conflicts of interest.
Appointed by James Comey, McCabe led the FBI investigation that determined Hillary Clinton should not be prosecuted for her mishandling of classified emails. McCabe’s wife had reportedly received $700,000 for her unsuccessful Virginia senate campaign from close Clinton ally Virginia Governor Terry McAuliffe. (McAuliffe was also said to be under FBI investigation regarding campaign contributions from a Chinese businessman. He has not been charged and has denied any wrongdoing.)
Latest: News reports say McCabe will retire in early March when he’s eligible for his full pension.
Andrew McCabe, FBI Deputy Director
“Reassigned”: James Baker, FBI General Counsel
James Baker, FBI General Counsel
Reportedly under IG investigation for allegedly improperly leaking information.
Baker also served as counsel for McCabe during Congressional questioning. Separately, Baker was allegedly in contact with a reporter who published the first story about an anti-Trump “dossier” alleging ties between Trump and Russia. (The reporter denies Baker was a source.) The dossier was presented shortly before the election as if it were an intelligence investigative file. But it turned out to be political opposition research funded by the Hillary Clinton campaign and the Democratic National Committee. Congress is investigating whether the FBI improperly used the dossier to convince a secret court to authorize wiretaps to surveil Trump associates. The FBI reportedly secretly offered to pay the author of the dossier to keep pursuing leads after the election, but the deal wasn’t ultimately consummated.
Latest: Baker has reportedly been reassigned. His supporters have told reporters the reassignment is unrelated to the investigations and that he did nothing wrong.
“Transferred”: Peter Strzok, the top FBI agent on Special Counsel Robert Mueller’s team
Peter Strzok, FBI official
Alleged anti-Trump political bias.
Strzok is identified as the FBI official who softened language and watered down key findings in the Clinton email probe. He was the top FBI agent on Special Counsel Robert Mueller’s team investigating alleged Trump-Russia collusion and number two in FBI Counterintelligence office during Hillary Clinton email investigation. Strzok oversaw FBI interviews with Trump National Security Adviser Lt. Gen. Michael Flynn (who plead guilty to lying to the FBI).
While Strzok worked on the Trump-Russia investigation, the Inspector General unearthed anti-Trump text messages Strzok had exchanged with FBI attorney Lisa Page, a fellow member of Mueller’s team with whom Strzok was reportedly having an illicit affair.
Latest: Strzok was ousted from Mueller’s team and transferred to human resources in August after the controversial anti-Trump text messages were discovered.
Shifted: Lisa Page, FBI lawyer and McCabe senior adviser
Alleged anti-Trump political bias.
Page was on the FBI Mueller team investigating alleged Trump-Russia collusion. She had exchanged anti-Trump text messages with Strzok, the top FBI agent on Mueller’s team, with whom she was reportedly having an illicit affair.
Latest: Page left the Mueller team last summer. Reports say the move was unrelated to the controversy.
Excerpts from text exchanges between FBI couple Strzok and Page who served on the Mueller team investigating Trump:Page: “I cannot believe Donald Trump is likely to be an actual, serious candidate for president” and “God(,) Trump is a loathsome human.”Page: “I just saw my first Bernie Sander [sic] bumper sticker. Made me want to key the car.”
Strzok: “He’s an idiot like Trump. Figure they cancel each other out.”
Strzok called Trump “awful” and “an idiot” and said Clinton should win “100,000,000-0.’’
Strzok on Election Day when he learned Trump could win: “f*****g terrifying.”
Strzok: “I want to believe the path you threw out for consideration in Andy’s [believed to refer to McCabe] office that there’s no way he gets elected — but I’m afraid we can’t take that risk. It’s like an insurance policy in the unlikely event you die before you’re 40.’’
Page texted that she hoped Republican House Speaker Paul Ryan “fails and crashes in a blaze of glory.” Strzok replied that Republicans need “to pull their head out of that *ss. Shows no sign of occurring any time soon.”
Fired: James Comey, FBI Director under President Obama
Comey originally served under George W. Bush and briefly under President Trump. Once he was fired by Trump in May 2017, Comey secretly leaked a memo to the press to engineer the appointment of a special counsel to investigate alleged Trump-Russia collusion.
James Comey, former FBI Director
“Demoted”: Bruce Ohr, Associate Deputy Attorney General at the Department of Justice
Bruce Ohr, Justice Dept. official; Photo courtesy C-SPAN
Alleged improper political conflicts.
Bruce Ohr arranged to meet with the co-founder Fusion GPS, the political opposition research firm that compiled the anti-Trump “dossier,” according to court filings. Fusion GPS also hired Ohr’s wife, Nellie.
Latest: Ohr still works at the Justice Department, but was reportedly recently removed as associate deputy attorney general.
Investigator: Robert Mueller
Special Counsel investigating alleged Trump-Russia collusion in 2016 US election. Former FBI Director 2001-2013 under Bush and Obama. Mueller served as FBI Director under Comey when Comey was a top Bush Justice Department official.
Robert Mueller, former FBI Director, Special Counsel investigating alleged Trump-Russia collusion
Investigator: Michael Horowitz
Obama-appointed Department of Justice Inspector General investigating a wide range of alleged misconduct within FBI and Department of Justice.
Michael Horowitz, Department of Justice Inspector General
