Obama, from Hawaii Issued Formal Sanctions Against Russians

The Department of Homeland Security (DHS) has released a Joint Analysis Report (JAR) that details Russian malicious cyber activity, designated as GRIZZLY STEPPE. This activity by Russian civilian and military intelligence services (RIS) is part of an ongoing campaign of cyber-enabled operations directed at the U.S. government and private sector entities.

DHS recommends that network administrators review the Security Publication for more information and implement the recommendations provided.

Barack Obama says US shutting down two Russian compounds in Maryland and New York and declaring 35 Russian intelligence operatives “persona non grata.”

Issuance of Amended Executive Order 13694; Cyber-Related Sanctions Designations

Today, the President issued an Executive Order Taking Additional Steps To Address The National Emergency With Respect To Significant Malicious Cyber-Enabled Activities.  This amends Executive Order 13694, “Blocking the Property of Certain Persons Engaging in Significant Malicious Cyber-Enabled Activities.”  E.O. 13694 authorized the imposition of sanctions on individuals and entities determined to be responsible for or complicit in malicious cyber-enabled activities that result in enumerated harms that are reasonably likely to result in, or have materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the United States.  The authority has been amended to also allow for the imposition of sanctions on individuals and entities determined to be responsible for tampering, altering, or causing the misappropriation of information with the purpose or effect of interfering with or undermining election processes or institutions.  Five entities and four individuals are identified in the Annex of the amended Executive Order and will be added to OFAC’s list of Specially Designated Nationals and Blocked Persons (SDN List).  OFAC today is designating an additional two individuals who also will be added to the SDN List.

 

Specially Designated Nationals List Update

The following individual has been added to OFAC’s SDN List:  
ALEXSEYEV, Vladimir Stepanovich; DOB 24 Apr 1961; Passport 100115154 (Russia); First Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
 
BELAN, Aleksey Alekseyevich (a.k.a. Abyr Valgov; a.k.a. BELAN, Aleksei; a.k.a. BELAN, Aleksey Alexseyevich; a.k.a. BELAN, Alexsei; a.k.a. BELAN, Alexsey; a.k.a. “Abyrvaig”; a.k.a. “Abyrvalg”; a.k.a. “Anthony Anthony”; a.k.a. “Fedyunya”; a.k.a. “M4G”; a.k.a. “Mag”; a.k.a. “Mage”; a.k.a. “Magg”; a.k.a. “Moy.Yawik”; a.k.a. “Mrmagister”), 21 Karyakina St., Apartment 205, Krasnodar, Russia; DOB 27 Jun 1987; POB Riga, Latvia; nationality Latvia; Passport RU0313455106 (Russia); alt. Passport 0307609477 (Russia) (individual) [CYBER2].
 
BOGACHEV, Evgeniy Mikhaylovich (a.k.a. BOGACHEV, Evgeniy Mikhailovich; a.k.a. “Lastik”; a.k.a. “lucky12345”; a.k.a. “Monstr”; a.k.a. “Pollingsoon”; a.k.a. “Slavik”), Lermontova Str., 120-101, Anapa, Russia; DOB 28 Oct 1983 (individual) [CYBER2].
 
GIZUNOV, Sergey (a.k.a. GIZUNOV, Sergey Aleksandrovich); DOB 18 Oct 1956; Passport 4501712967 (Russia); Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
 
KOROBOV, Igor (a.k.a. KOROBOV, Igor Valentinovich); DOB 03 Aug 1956; nationality Russia; Passport 100119726 (Russia); alt. Passport 100115101 (Russia); Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
 
KOSTYUKOV, Igor (a.k.a. KOSTYUKOV, Igor Olegovich); DOB 21 Feb 1961; Passport 100130896 (Russia); alt. Passport 100132253 (Russia); First Deputy Chief of GRU (individual) [CYBER2] (Linked To: MAIN INTELLIGENCE DIRECTORATE).
 
The following entities have been added to OFAC’s SDN List:
 
AUTONOMOUS NONCOMMERCIAL ORGANIZATION PROFESSIONAL ASSOCIATION OF DESIGNERS OF DATA PROCESSING SYSTEMS (a.k.a. ANO PO KSI), Prospekt Mira D 68, Str 1A, Moscow 129110, Russia; Dom 3, Lazurnaya Ulitsa, Solnechnogorskiy Raion, Andreyevka, Moscow Region 141551, Russia; Registration ID 1027739734098 (Russia); Tax ID No. 7702285945 (Russia) [CYBER2].
 
FEDERAL SECURITY SERVICE (a.k.a. FEDERALNAYA SLUZHBA BEZOPASNOSTI; a.k.a. FSB), Ulitsa Kuznetskiy Most, Dom 22, Moscow 107031, Russia; Lubyanskaya Ploschad, Dom 2, Moscow 107031, Russia [CYBER2].
 
MAIN INTELLIGENCE DIRECTORATE (a.k.a. GLAVNOE RAZVEDYVATEL’NOE UPRAVLENIE (Cyrillic: ГЛАВНОЕ РАЗВЕДЫВАТЕЛЬНОЕ УПРАВЛЕНИЕ); a.k.a. GRU; a.k.a. MAIN INTELLIGENCE DEPARTMENT), Khoroshevskoye Shosse 76, Khodinka, Moscow, Russia; Ministry of Defence of the Russian Federation, Frunzenskaya nab., 22/2, Moscow 119160, Russia [CYBER2].
 
SPECIAL TECHNOLOGY CENTER (a.k.a. STC, LTD), Gzhatskaya 21 k2, St. Petersburg, Russia; 21-2 Gzhatskaya Street, St. Petersburg, Russia; Website stc-spb.ru; Email Address stcspb1@mail.ru; Tax ID No. 7802170553 (Russia) [CYBER2].
 
ZORSECURITY (f.k.a. ESAGE LAB; a.k.a. TSOR SECURITY), Luzhnetskaya Embankment 2/4, Building 17, Office 444, Moscow 119270, Russia; Registration ID 1127746601817 (Russia); Tax ID No. 7704813260 (Russia); alt. Tax ID No. 7704010041 (Russia) [CYBER2].
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Waging a guerrilla war

One announcement came from Berlin. Another came from Washington. And they came weeks apart.

German intelligence warned in late November that Russia had launched a campaign to meddle in upcoming elections to the Bundestag. And in early December, the CIA said it concluded that Moscow had already interfered in the U.S. presidential election.

In any other year, either of these claims would probably have been astonishing, sensational, and even mind-blowing.

Not in 2016.

This was the year such things became routine as the Kremlin took the gloves off in its nonkinetic guerrilla war against the West.

It was the year Russia’s long-standing latent support for the xenophobic and Euroskeptic far right became manifest, open, and increasingly brazen.

It was the year cyberattacks moved beyond trolling and disruption and toward achieving specific political goals.

It was the year long-cultivated networks of influence across the West were activated.

It was the year the Kremlin expanded its disinformation campaign beyond Ukraine and the former Soviet space and aimed it at destabilizing the West itself.

It was the year Moscow turned Western democracy into a weapon — against Western democracy.

And most importantly, with the West suffering from one of its worst crises of confidence in generations, 2016 was the year Moscow began to see results.

It was the year of the perfect storm, when the Western angst and malaise from the 2008 financial crisis, the eurozone crisis, and the migrant crisis crested and dovetailed with a concerted Kremlin campaign to undermine Western institutions.

And with the Brexit vote in the United Kingdom, with the election of Donald Trump in the United States, with one pro-Moscow candidate or another likely to win the presidency in France, and with antiestablishment populism on the rise throughout Europe, this perfect storm has produced a markedly more favorable environment for the goals of Vladimir Putin’s autocratic regime.

It has left the independence of countries seeking to escape Moscow’s orbit — like Ukraine, Georgia, and Moldova — more precarious than at any moment since the Soviet collapse.

Larry Diamond, a senior fellow at the Hoover Institution, wrote recently in The Atlantic that the Kremlin has launched “an opportunistic but sophisticated campaign to sabotage democracy and bend it toward his interests, not just in some marginal, fragile places but at the very core of the liberal democratic order, Europe and the United States.”

“We stand now at the most dangerous moment for liberal democracy since the end of World War II,” Diamond added.

An Early Harbinger

The warnings that 2016 would be different came early, in January, when Moscow escalated its information war against the West with the infamous case of Lisa F. in Germany.

By relentlessly pushing a false story that an ethnic-Russian teenage girl was sexually assaulted by migrants in Berlin at a time when Germans were getting increasingly nervous about the mounting migrant crisis, the Kremlin appeared to be actively attempting to undermine the government of Chancellor Angela Merkel.

Incited by Russian-language media reports, thousands of Russian-speaking protesters took to the streets carrying banners with slogans like “Our Children Are In Danger.”

Russian Foreign Minister Sergei Lavrov gave the “scandal” an official stamp, accusing the German authorities of “sweeping problems under the rug.”

The story was soon proven false, but the damage was done — and a message was sent that the Kremlin intended to play hardball.

And play hardball it did, with a dizzying and almost nonstop barrage of hacking, doxing, fake news, support for fringe political forces, and other mischief.

The most high-profile example of this, of course, was the emerging consensus that Russia hacked the U.S. presidential election with the apparent goal of harming Hillary Clinton and/or helping Trump.

But while the hacking of the U.S. election garnered the most attention and headlines, it was far from the only case of Russia seeking to destabilize Western democracies.

“Putin is not done yet. He seeks to promote anti-establishment candidates in next year’s elections in the Netherlands, France, Italy and Germany,” Michael Khodarkovsky, a professor at Loyola University Chicago and author of the forthcoming book Russia’s Twentieth Century, wrote in The New York Times.

And Then We Take Berlin

In a letter to EU foreign-relations chief Federica Mogherini, 51 lawmakers from the European Parliament warned that more than $200 million of Russian black cash has been laundered through Europe and “there is information that shows that the money has been used to influence European politics, media, and civil society.”

In the United Kingdom, Russia’s propaganda machine worked overtime to cheerlead for the Brexit campaign and its leader Nigel Farage.

In Italy, Kremlin-funded news outlets RT and Sputnik fed a barrage of fake news to a network of websites run by the far left Five Star Movement, spreading Euroskepticism, and anti-Americanism, and undermining a constitutional referendum that led to Prime Minister Matteo Renzi’s resignation.

The Kremlin also continued to support Marine Le Pen, leader of the anti-immigrant National Front in France which was granted a 9 million euro loan from a Russian bank in 2015.

And Le Pen’s likely opponent in the second round of next year’s presidential elections, former prime minister Francois Fillon, is also openly pro-Moscow.

And in December, the ruling United Russia party signed a cooperation agreement with Austria’s far-right Freedom Party.

“Despite being much weaker than the Soviet Union, Russia today nevertheless has a greater ability to provoke mischief than the communist empire ever did, while western debates on how to contain (or engage) Russia have an air of helplessness,” political analyst Lilia Shevtsova wrote in The Financial Times.

The legacy of 2016 is a weakened, divided, and disillusioned West; and an emboldened Kremlin.

“If December 7, 1941, is a date which will live in infamy,” Brian Frydenborg wrote on the blog War Is Boring, in reference to the attack on Pearl Harbor that brought the United States into World War II, “then 2016 is a year which will live in infamy.”

GW Bush Doing the Work Kerry Should on N. Korea

Sometimes when a panel is mobilized that includes media, negotiators, diplomats and legislators, interesting facts emerge. Such is the case where President George W. Bush convened a panel at the George W. Bush Institute on the matter of North Korea. Going beyond the proven human rights violations by the Kims, there is more to understand when it comes to relationships including the DPRK, China, Japan, S. Korea, Taiwan, Iran, Syria and more.

There is a U.S. citizen currently in prison doing slave labor in N. Korea but John Kerry voids his failure to get Otto Warmbier released. Kerry deferred the process to former governor Bill Richardson and there has been no progress.

The DPRK is in fact developing technology and weapons systems that are not only being tested but being sold to rogue nations for revenue purposes.

GW Bush has reached out to North Koreans that have escaped and made their way to the United States in a manner where they provide information and continued work for the benefit of Congress, the State Department, diplomatic objectives and policy to address the Kim regime going forward.

This is a fascinating discussion where real truths are revealed pointing to labor, human rights violations, military and nuclear operations, trade and more. North Korea is stacking missiles on launch pads and working on miniaturized nuclear weapons. The objective is to reach the United States. What has John Kerry done for deterrents? Nothing….

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North Korea’s Rockets and Missiles

Space/2013: North Korea’s missile program is shrouded in secrecy, which helps the outlaw nation keep the rest of the world guessing.Still, Western experts have learned a fair bit about Pyongyang’s stable of rockets and missiles over the years by analyzing test flights, satellite photos and other data. Here are five of the most interesting things they’ve figured out.

FIRST STOP: Soviet Origins of Missiles

Soviet Origins

The Hermit Kingdom’s missile program is based primarily on Soviet Scuds, which apparently entered the country via Egypt in the 1970s. North Korea was building its own Scud version, called the Hwasong-5, by the mid-1980s, and moved onto bigger and more powerful missiles after that. [North Korea’s Missile Capabilities Explained]NEXT: Poor Accuracy

Poor Accuracy

North Korea’s missiles have lousy accuracy compared to those developed by the United States, experts say. Pyongyang’s Hwasong line, for example, can reach targets a few hundred miles away, but with an accuracy of just 0.3 miles to 0.6 miles (0.5 to 1 kilometer).A missile called the Nodong can fly 620 miles to 800 miles (1,000 to 1,300 km), but its estimated accuracy is even worse — 1.8 to 2.5 miles (3 to 4 km). Such missiles can’t reliably hit military targets, but they can certainly strike larger targets such as cities.

NEXT: Iran’s Help

Cooperation with Iran

North Korea has apparently cooperated extensively with fellow pariah nation Iran on rocket and missile technology. For example, the third stage of Pyongyang’s Unha-2 rocket is very similar to the upper stage of Iran’s Safir-2 launcher, physicists David Wright and Theodore Postol noted in a 2009 report.NEXT: Satellite Success

Satellite Launch Success

North Korea joined the ranks of satellite-launching nations last December, when its Unha-3 rocket launched a small satellite to Earth orbit.This breakthrough came after three consecutive failures — one in 1998, one in 2009 and another in April 2012. North Korean officials didn’t always admit to these mishaps, however. For example, they claimed that the Kwangmyongsong-1 (“Bright Star 1”) satellite reached orbit in 1998 and broadcast patriotic songs into space. [Unha-3 Rocket Explained (Infographic)]

NEXT: Nuclear Warheads Possible

Nuclear Warheads Possible

North Korea has been ratcheting up its bellicose rhetoric lately, threatening to launch nuclear strikes against Washington, D.C. and other American cities.While the rogue nation’s nuclear-weapons program is thought to be at a relatively primitive stage, Pyongyang may indeed already possess warheads small enough to be carried large distances by a ballistic missile, experts say. “Having something that’s around 1,000 kilograms, or maybe somewhat smaller than that, unfortunately does not seem impossible,” Wright told SPACE.com. “We don’t really know, but I think you have to take seriously that they could well be there.”

Most analysts doubt, however, that North Korean missiles are powerful enough to deliver a nuclear weapon to the American mainland. The tough talk from Pyongyang is primarily bluster aimed at wringing concessions out of the international community and building support for young leader Kim Jong-Un at home, they say.

Obama Terminates NSEERS

CAIR is delighted with this Obama decision and so is the New York Attorney General. Essentially, this is removing many of the national security tools used to secure the homeland. It is not only about tracking Arab or Muslim men. How about foreign national spies?

Obama gets rid of visitor registry before Trump takes over

TheHill: The Obama administration is abolishing a national registry program created to track visitors from countries with active terrorist groups, a move likely intended to send a strong message to Donald Trump just weeks before he takes office, the New York Times reports.

The registry, officially called the National Security Entry-Exit Registration System, was created after the Sept. 11, 2001 terrorist attacks, but has not been in use since 2011.

President-elect Trump has suggested he was open to reviving the program and has even floated a wider national registry of all Muslims and potentially barring people from countries with a history of Islamist extremism from entering the country.

The Department of Homeland Security submitted a rule change for dismantling of the program, writing that it no longer helps security. The changes will take effect Friday.

“D.H.S. ceased use of NSEERS more than five years ago, after it was determined the program was redundant, inefficient and provided no increase in security,” Neema Hakim, a spokesman for the Department of Homeland Security, said in a statement.

Hakim said the program diverts personnel and resources from other areas that are more effective.

Civil liberties groups have long criticized the program.

The American-Arab Anti-Discrimination Committee praised the move, calling the registry a “failed program rooted in discriminatory profiling.”

In a statement, the group said it has worked “tirelessly” in pushing DHS to dismantle the program.

“This is the right decision by [Homeland] Secretary [Jeh] Johnson. We commend him, and the Obama administration, for letting it be known that such registry programs are futile and have no place in our country,” said Abed Ayoub, the group’s legal and policy director.

“However the community cannot be at ease; the next administration has indicated that they will consider implementing similar programs. We will work twice as hard to protect our community and ensure such programs do not come to fruition.”

Kris Kobach, Kansas’s secretary of state and a member of Trump’s transition team, was photographed with a document recommending reintroducing the visitor registry program in the first year of Trump’s presidency.

“All aliens from high-risk areas are tracked,” the document said.

Trump has waffled on whether his administration would create a broader so-called Muslim registry, and he faced new questions about the proposal this week after the attack in Berlin.

Asked by reporters if he intends to set up a registry, he said: “You know my plans,” adding, “All along, I’ve been proven to be right, 100 percent correct.”

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This site posted a summary on this database a month ago.

It is called NSEERS.

There is an entry and exit program managed by the Department of Homeland Security….well they maintain it but don’t use it to remove people…but it does exist to the point of a backlog of 1.6 million and it actually a Visa Overstay system.

Thank you GW Bush, as NSEERS was launched in 2002 and used to collect names, backgrounds and locations of people that were inside the United States that would pose a threat and cause additional harm to the homeland. The Bush administration earnestly applied all elements of this program and performed thousands of deportations as well as criminal investigations on violators or those connected to nefarious groups and organization. By the end of the calendar year 2002, 3,995 wanted criminals had been arrested attempting to cross into the United States. 

The 9/11 Commission Report dedicated an entire chapter to immigration and the flaws. Many of the hijackers were in the United States illegally. Okay, then the 9/11 Commission also made stout recommendations of which everyone in Congress agreed to and signed. Then a few years later, those agreements began to fall apart on the Democrat side and continue to be forgotten today.

Russia Using Battlefield Electronic Warfare and Hacking

Iran and Turkey met in Moscow directly after the operations began to finish off the hostilities in Aleppo. The United States, meaning John Kerry was not invited. A new global leadership arrangement is underway and the United States has lost her ranking. Even after the murder of the Russian ambassador by a Turkish police officer, the relationship appears to be getting more cozy. This may be a good place to remember the fact that Turkey is a NATO country and the United States still has an aging nuclear weapons inventory at Incirlik in Turkey.

So what is the ultimate objective? Hard to describe but the Kremlin is the grand marshal of building pattern for the future. Russia, previously the Soviet Union is a country built on a militarist model and not a peacetime model, always has been.

Russia’s military is now stronger that any possible foe, President Vladimir Putin told an annual end-of-year meeting with the defense ministry on Thursday.

“We can say with certainty: we are stronger now than any potential aggressor,” he told the meeting. “Anyone!”

Putin made the comments after Defense Minister Sergei Shoygu presented his annual report, lauding Russia’s military achievements in Syria as well as successful efforts to modernize the Russian army.

Among other things, Shoygu said Russia “for the first time in its history” has fully covered the Russian border with early warning anti-missile systems. Shoygu also announced plans to send more troops to Russia’s west, south-west and the Arctic region. More from FNC.

Iran is geared the same and expanding its offensive military systems including global militias and missile systems. Russia is testing an anti-satellite weapons system. Iran is expanding the weapons arsenal using much of the money we paid to them in ransom.

The nearly $2 billion, which was delivered to Iran in cash, is a substantial cash infusion to the country’s coffers and was viewed by lawmakers as a primary means for Iran to invest in advanced military technology.
Since the payment was made, Iran has pursued multiple arms deals with Russia and sought to purchase a slew of new commercial jetliners, which the country has historically integrated into its air force.
Dunford admitted in his correspondence to Congress that Iran’s actions—including the buildup of ballistic missiles and other advanced weaponry—continue to cause worry in the Middle East.
“Regional actors have expressed great concern about Iran’s activities and intent, but I have not received new, specific concerns regarding an increasing belligerence or growing military investment on the part of Iran,” Dunford wrote.

Then there is the Ukraine Baltic region where Russia has applied hacking and electronic warfare against U.S. drone systems and hacking communications. Further, independent white hat software experts are proving Russian electronic hacking in other battlefield systems that include artillery units.

Both Russia and Iran are looking at the long game while the United States changes leadership and diplomacy every 4-8 years. So what is the long game? For Iran and Russia it is the same, military expansion. For Iran, it goes beyond their existing power in Lebanon and building bases in the region which include more of the Middle East with Yemen and to challenge the Gulf States, Bahrain, most especially Saudi Arabia and may involve Armenia. Iran has joint control of Syria and Iraq presently and Rouhani recently visited Kazakhstan and Kyrgyzstan. The president is accompanied by a number of his ministers and deputies. Kazakhstan is a former Soviet biological weapons facility of which the United States is paying still to this day to clean up and Baikonur is also the location for the space race and exploration systems.

For Russia it is the Bosporus Strait and the Dardanelles. This could be a power coup on Turkey that Erdogan has not figured out yet or may approve if there is another financial deal in the works.

The Black Sea is the ultimate power target by both nations. The Black Sea gives Russia more region authority over the Baltics and more access to the Mediterranean.

TURKEY BLOCKADING RUSSIA FROM DARDANELLES; BLACK SEA FLEET COMPLETELY CUT OFF

For Russia, the United States is not alone as the UK is also the target.

Vladimir Putin’s defence minister today compared the British army to Nazi Germany as the new Cold War plunged to a fresh low.

Sergei Shoigu claimed British troops on a Salisbury Plain training facility have started to use Russian-made tanks and uniforms of the Russian military to designate the enemy.

And the 61-year-old general, one of Putin’s closest allies and a personal friend, also alleged that NATO has doubled the intensity of military exercises, and dubbed them ‘anti-Russian.’

The man who heads the former Red Army said: ‘The last time this training method was used was by Nazi Germany during the Second World War.’

His comments came during a meeting in the Russian defence ministry of his top brass. More here from DailyMail.

 

 

 

Chinese Spy Caught Stealing Military Documents

If you don’t think that our country is full of foreign spies and operatives engaged in industrial espionage, perhaps this case will change your mind. One has to ask why foreign nationals are employed by domestic corporations that are government contractors in the first place.

Long Yu Criminal Complaint

Related reading: Russian Spies and Espionage in NATO and USA

Chinese National Admits to Stealing Sensitive Military Program Documents from United Technologies

Yu Long, 38, a citizen of China and lawful permanent resident of the U.S., waived his right to be indicted and pleaded guilty today in New Haven federal court to charges related to his theft of numerous sensitive military program documents from United Technologies and transporting them to China.

The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Deirdre M. Daly of the District of Connecticut, Special Agent in Charge Patricia M. Ferrick of the New Haven Division of the Federal Bureau of Investigation, Special Agent in Charge Matthew Etre of Homeland Security Investigations (HSI) in Boston, Special Agent in Charge Craig W. Rupert of the Defense Criminal Investigative Service (DCIS) Northeast Field Office, and Special Agent in Charge Danielle Angley of the U.S. Air Force Office of Special Investigations.

“Long admitted to stealing and exploiting highly sensitive military technology and documents, knowing his theft would benefit China’s defense industry and deliberately contravene the embargo on U.S. Munitions List technology the United States has imposed on China,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and disrupting and prosecuting this kind of economic espionage is one of the National Security Division’s highest priorities.”

“In an effort to further his own career, this defendant stole an extraordinary amount of proprietary military program information from United Technologies and transported much of that stolen information to China,” said U.S. Attorney Deirdre M. Daly.  “His actions, which he knew would benefit China, not only violated his employment agreement and damaged the company, but have threatened our country’s national security interests.  U.S. companies continue to be targeted by those who seek to steal intellectual property, trade secrets and advanced defense technology – whether through a computer hack or cyber intrusion, or through a rogue employee.  Working closely with our nation’s defense contractors, we will relentlessly investigate and prosecute those who steal, or attempt to steal, trade secrets and sensitive military information, whether for their own personal gain or for the benefit of foreign actors.”

“This case highlights the complexity in which the FBI and law enforcement are being challenged to keep the integrity of our industry intellectual property intact,” said Patricia M. Ferrick, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation.  “Investigating criminal activity of this nature will continue to be a priority.”

“These sophisticated technologies are highly sought after by our adversaries,” said Special Agent in Charge Matthew Etre of HSI Boston.  “They were developed to give the United States and its allies a distinct military advantage, which is why HSI and our law enforcement partners will continue to aggressively target the individuals who steal the ideas of others and sell these items.”

“Today’s plea demonstrates the commitment of the Defense Criminal Investigative Service (DCIS) and our federal law enforcement partners to identifying those who illegally export sensitive defense information to adversarial Foreign governments,” said Craig W. Rupert, Special Agent in Charge, DCIS, Northeast Field Office.  “DCIS will continue to safeguard sensitive technology and to shield America’s investment in national defense by disrupting efforts of groups and individuals who try to illegally acquire our national security assets.”

“This case was enabled by the outstanding teamwork of the FBI, DCIS, HSI, AFOSI and the U.S. Attorney’s office,” said Danielle Angley, Special Agent-in-Charge with the Air Force Office of Special Investigations.  “In addition, it demonstrates the focus of law enforcement agencies to protect our nation’s critical resources.”

According to court documents and statements made in court, from approximately May 2008 to May 2014, Long worked as a Senior Engineer/Scientist at United Technologies Research Center (UTRC) in Connecticut. Long’s employment at UTRC included work on F119 and F135 engines. The F119 engine is employed by the U.S. Air Force F-22 Raptor fighter aircraft, and the F135 engine is employed by the U.S. Air Force F-35 Lightning II fighter aircraft.

Beginning in 2013, Long expressed his intent to individuals outside UTRC to return to China to work on research projects at certain state-run universities in China using knowledge and materials he had acquired while employed at the UTRC. To that end, Long interacted with several state-run institutions in China, including the Chinese Academy of Science (CAS) and the Shenyang Institute of Automation (SIA), a state-run university in China affiliated with CAS.

During 2013 and 2014, Long was recruited by SIA and other state-run universities, during which he leveraged information that he had obtained while working at UTRC to seek employment in China, culminating in his travel to China in the possession of voluminous documents and data containing highly sensitive intellectual property, trade secrets and export controlled technology, which he had unlawfully stolen from UTRC.

In December 2013, after Long agreed in principle to join SIA, an SIA-CAS Director and an SIA-CAS Recruiter asked Long to provide documents from his work at UTRC and examples of projects on which he had worked to substantiate the claims Long made in his application, and interview with SIA.  Long agreed.

On Dec. 24, 2013, Long emailed several documents to the SIA-CAS Director, including a document that contained the cover page of an export controlled UTRC presentation on Distortion Modeling dated Sept. 30, 2011.

While negotiating with SIA, Long also continued to explore other opportunities at other state-run institutions in China. In one email, Long stated: “I have made my mind to return to China, so have prepared a research plan based on my industry experience and current projects.” In the research plan, Long stated: “In the past five years, I have been working with Pratt Whitney, also other UTC business units, like UTAS (including Hamilton Sundstrand and Goodrich), Sikorsky, CCS (including Carrier and Fire & Security), and Otis. These unique working experiences have provided me a great starting point to perform R&D and further spin off business in China. I believe my efforts will help China to mature its own aircraft engines.”

On May 30, 2014, Long left UTRC. In June 2014, Long traveled to China and began working for SIA. Beginning in July 2014, digital evidence and forensic analysis indicated that Long brought with him and accessed in China a UTRC external hard drive that had been issued to him and that he unlawfully retained.

In July 2014, Long was listed as the project leader on a lengthy research plan for CAS involving fourteen other individuals.  The plan was replete with references to how the proposed research and development would benefit China. The plan stated: “The three major engine companies in the world, i.e. GE, Pratt & Whitney in the US and Rolls-Royce in the UK, are all using this technology. . . Our nation lacks the ability to process high performance components, such as airplane wings, tail hooks on carrier aircrafts, and blisks . . . Because of the technology embargo imposed by western developed countries, it is very difficult for us to obtain more advanced design and manufacturing technology . . . This research project will increase our independent ability, efficiency and quality in key component manufacturing.”

On or about Aug. 12, 2014, the Document on Distortion Modeling – the same document from which Long had sent the cover page to the SIA-CAS Director on Dec. 24, 2013 – was accessed on the external hard drive. Travel records and forensic analysis confirmed that both Long and the external hard drive were in China when this file was accessed.

On Aug. 19, 2014, Long returned to the U.S. from China through John F. Kennedy International Airport in New York. During a secondary inspection screening by U.S. Customs and Border Protection (CBP) officers, Long was found in the possession of a largely completed application for work with a state-controlled aviation and aerospace research center in China. The application highlighted certain parts of Long’s work related to the F119 and F135 engines while at UTRC.

On or about Aug. 20, 2014, Long emailed an individual at a university in China, attaching an updated “achievement and future plan.” In the plan, Long discussed his work related to the F119 and F135 U.S. military fighter jet engines and stated that he also had knowledge of unpublished UTRC projects in which the U.S. Air Force had shown interest.

On Nov. 5, 2014, Long boarded a flight from Ithaca, New York to Newark Liberty International Airport in Newark, New Jersey, with a final destination of China. During Long’s layover in Newark, CBP officers inspected Long’s checked baggage and discovered that it contained sensitive, proprietary and export controlled documents from another defense contractor, Rolls Royce.

Further investigation determined that the U.S. Air Force had convened a consortium of major defense contractors, including Pratt and Rolls Royce, to work together to see whether they could collectively lower the costs of certain metals used. As part of those efforts, members of the consortium shared technical data, subject to restrictions on further dissemination. Rolls Royce reviewed the documents found in Long’s possession at Newark Liberty Airport and confirmed that it provided the documents to members of the consortium, which included Pratt. Rolls Royce further confirmed that Long was never an employee of Rolls Royce. A review of UTRC computer records indicated that Long had printed the documents while employed at UTRC.

Long was arrested on a federal criminal complaint on Nov. 7, 2014. A review of Long’s digital media seized at the time of his arrest revealed voluminous files protected by the International Traffic in Arms Regulations and Export Administration Regulations, and voluminous files proprietary to various U.S. companies. In short, the investigation revealed that Long took his laptop and the UTRC external hard drive with him to China in 2014, at which time there was a substantial body of highly sensitive, proprietary and export controlled materials present on that digital media. UTRC has confirmed that the hard drive that Long unlawfully retained and accessed in China contained not only documents and data from projects on which Long worked while employed at the company, but also from projects on which he did not work to which he would have had access.

Long pleaded guilty to one count of conspiracy to engage in the theft of trade secrets knowing that the offense would benefit a foreign government, foreign instrumentality or foreign agent, an offense that carries a maximum term of imprisonment of 15 years. He also pleaded guilty to one count of unlawful export and attempted export of defense articles from the U.S. in violation of the Arms Export Control Act, an offense that carries a maximum term of imprisonment of 20 years.

Long, who has been detained since his arrest, will be sentenced by U.S. District Judge Robert N. Chatigny in Hartford.  A sentencing date has not been scheduled.

This investigation is being led by the FBI in New Haven in coordination with Homeland Security Investigations in New Haven and Newark; the Defense Criminal Investigative Service in New Haven; the U.S. Air Force’s Office of Special Investigations in Boston, Massachusetts; and, the Department of Commerce’s Boston Office of Export Enforcement. U.S. Attorney Daly and Acting Assistant Attorney General McCord also thanked the FBI in Newark, Ithaca and Syracuse, New York, the U.S. Customs and Border Protection Service in New York and Newark, and the U.S. Attorney’s Offices for the Northern District of New York and the District of New Jersey, for their efforts and assistance in this matter.

This case is being prosecuted by Assistant U.S. Attorneys Tracy Lee Dayton and Stephen B. Reynolds of the District of Connecticut, and Trial Attorneys Brian Fleming and Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.