Chinese Immigrant and CEO of Konnech, an Election Software Company, was Arrested

Do you think the J6 Committee is even aware of this or will include it in hearings or reports? As the case moves on, do you think there is more to the investigation?

RedState: As we reported on October 4, Eugene Yu, a Chinese immigrant and CEO of Konnech, an election software company, was arrested “as part of an investigation into the possible theft of personal identifying information of [Los Angeles County election] workers,” which officials believed “was stored on servers in the People’s Republic of China.”

The other shocking part of the story was that LA County District Attorney George Gascon, who’s not known as being tough on crime, announced the arrest and extradition and that investigators from his office had been working on the case.

One of Konnech’s software offerings is a program called PollChief, which schedules election workers and assists elections officials with supply and logistics procedures. In 2019 LA County entered into a contract with Konnech, and a sole-source contract worth more than $2 million was finalized in 2020. As part of the contract, Konnech was to abide by state and federal law, and to various information security procedures, which an LA County District Attorney’s office investigator described in a complaint supporting the request for a warrant for Yu’s arrest:

  • “[C]ontractor shall screen and conduct background checks on all Contractor personnel contacting County’s Confidential Information, including Personally Identifiable Information, for potential security risks and require all employees and contractors to sign an appropriate written confidentiality non-disclosure agreement.
  • Personally Identifiable Information, and County’s Confidential Information: (i) may only be made available and accessible to those parties explicitly authorized under the Contract or otherwise expressly approved by County in writing.
  • Only Contractor’s staff who are based in the United States and are citizens or lawful permanent residents of the United States shall have access to any County data, including personally identifiable information, hosted in County’s instance of the System Software.

This complaint, which is dated October 13, 2022, contains additional information about what investigators have found – information that does not lead to any type of confidence in the security of our election information.

Despite Eugene Yu’s insistence in a verified court pleading that “all of Konnech’s U.S. customer data is secured and stored exclusively on protected computers located within the United States,” the Los Angeles County DA’s office found that:

“On or about October 10, 2019, through October 4, 2022, Eugene Yu and other employees at Konnech, Inc. were providing these services to Los Angeles County using third-party contractors based in China.

“…Konnech employees known and unknown sent personal identifying information of Los Angeles County election workers to third-party software developers who assisted with creating and fixing Konnech’s internal ‘PollChief’ software.”

So, the personal identifying information of US election workers was intentionally sent not just out of the country, but to China. And to third-party contractors, which is potentially in complete violation of the state’s anti-independent contracting AB5 law.

Criminal Complaint

Procedures for Continuity in Government due to Nuclear Armageddon

It remains unclear whether President Biden revealed information that may have been part of a classified White House briefing when he spoke of nuclear Armageddon at a fundraising event in New York several days ago. However, to even mention the words should spin up lots of meetings at the Pentagon and the National Security Council, much less discussions with other world leaders. Even more meaningful would be to be having rehearsals and conversations with all associated American military across the world to ensure readiness and procedures. Instead, we have a White House and president that is traveling talking about mid-term elections, abortion law, climate change and eating ice cream.

But read on….

Site R - Raven Rock Command Center Raven Rock

The following essay is an adapted excerpt from William Doyle’s new book, Titan of the Senate: Orrin Hatch and the Once and Future Golden Age of Bipartisanship, published by Center Street Books.

Newsweek: Suddenly, in the wake of Russian threats to use tactical nuclear weapons, the world faces the possibility of a nuclear war that President Biden has alarmingly but accurately said threatens Armageddon. Tensions have not been this high since the 1962 Cuban Missile Crisis.

It is worth remembering that when we talk about nuclear war, we are talking about the violent deaths of millions—perhaps billions—of people, and possibly the end of most life on the planet. President Dwight Eisenhower once said that if a nuclear war happens, “there just aren’t enough bulldozers to scrape the bodies off the street.”

Experts have long feared that a single nuclear detonation, even a small one, would instantly trigger an irreversible chain reaction leading to the widespread firing of nuclear weapons. As Soviet leader Leonid Brezhnev put it in 1978, “The first time one of those things is fired in anger, everything is lost. The warring nations would never be able to put things back together.”

The precise choreography of launching nuclear weapons is veiled in secrecy, but speculative glimpses can be obtained through open-source accounts and interviews with nuclear experts. If an American president learns of an imminent nuclear attack, he or she would turn to the nearby military officer who carries a bulging briefcase nicknamed the “nuclear football,” the most powerful instrument of mass murder that humankind has ever created. It contains the codes and communications equipment that would enable the president to authorize the launch of nuclear weapons from submarines, land-based missile silos, cruise missiles, aircraft and other platforms.

In a nuclear crisis, the president can be flown by helicopter to the “backup Pentagon,” known as Raven Rock, or Site R, a small-city-size complex carved deep inside a mountain near Blue Ridge Summit on the Pennsylvania-Maryland state line and about seven miles north of the presidential retreat at Camp David.

Raven Rock is believed to serve as a fully equipped alternative to the Pentagon “war room,” or National Military Command Center, and it is believed to have been used by Vice President Dick Cheney and other officials after the attacks on Sept. 11, 2001. Author James Bamford described Raven Rock as “a secret world of five buildings, each three-stories tall, computer-filled caverns, and a subterranean water reservoir,” all underground and accessible by a helipad and a giant tunnel. According to author Garrett Graff, the site has “power stations, underground water reservoirs, a small chapel, clusters of three-story buildings set within vast caverns, and enough beds to accommodate two thousand high-ranking officials from the Pentagon, the State Department, and the National Security Council.” Graff added, “You can add to that list police and fire departments, a cafeteria, and everything else you would find in a normal small city.”

Through the football and other available communications tools, the president would be linked by voice and video to the Department of Defense’s National Military Command Center at the Pentagon, known as the “war room,” and to Strategic Command headquarters, or STRATCOM, at Offutt Air Force Base south of Omaha, Nebraska, which commands the nation’s arsenal of strategic nuclear weapons. If the secretary of defense, national security adviser, and chairman of the Joint Chiefs of Staff could be reached, they and other high military officials would be patched into the call, but the decision to launch nuclear weapons would be the president’s alone, presumably in consultation with one or more of top military leaders. According to the late Bruce Blair, a former Minuteman missile launch control officer and nuclear weapons historian at Princeton University, if missiles were confirmed to be on their way toward the United States, the president could have “as little as six minutes” to decide on a course of action, including ordering the launch of hundreds of long-range strategic nuclear warheads that are immediately available to fire.

If the president decides to order a nuclear launch, he and his military aide would quickly review the options listed in a briefing book inside the football. The American version of the football is not believed to contain a “red button” or to consist primarily of elaborate computer-style gear—unlike Russian president Vladimir Putin‘s nuclear football, the Cheget, which is believed to consist mainly of a high-tech laptop device—but communications equipment and simplified charts illustrating the various options and targets to select from the latest U.S. nuclear war plan.

The military aide would reach into the football and produce a small object resembling a credit card, nicknamed the “Biscuit,” upon which is written the “Gold Code,” a sequence of alphanumeric symbols that the president would read aloud to authenticate his identity as commander-in-chief. This would be the final step to launch nuclear weapons, making the Biscuit the most dangerous object on the planet. But at least two American presidents have apparently managed to lose track of theirs. In the 1970s and 1980s, when the Gold Codes were kept on a Biscuit card that the chief executive usually carried on his own person rather than inside the football, Jimmy Carter is believed to have misplaced his Biscuit when his suit was sent to the dry cleaners. In 1981, Ronald Reagan’s copy was sealed away for five days by the FBI after George Washington University Hospital emergency room staff cut off Reagan’s thousand-dollar business suit and put the card in a medical bag in the wake of his attempted assassination.

President Bill Clinton kept his Biscuit and his credit cards wrapped up with a rubber band, but, incredibly, he managed to lose it for a substantial length of time, according to a top military official. “The codes were actually missing for months,” wrote General Hugh Shelton, Clinton’s chairman of the Joint Chiefs of Staff from 1997 to 2001. “That’s a big deal—a gargantuan deal.”

Within three or four minutes of the president’s order, missiles would shoot out of their silos in the American Midwest, then about 10 minutes later the submarines would start firing missiles out of their tubes one at a time every 15 seconds. The ICBMs would fly high above the earth’s atmosphere and travel at speeds of 14,000 mph, descending on targets in, for example, Russia, China, or North Korea, in about 25 minutes. The submarine-launched missiles, fired from waters closer to their aim points, could have flight times of as little as 12 minutes. None of the missiles could be recalled. Given the poor performance of the Russian military in Ukraine, there is every reason to expect that Russian President Vladimir Putin’s missiles could misfire, malfunction, fly off course and strike unintended targets.

Not that it would matter much. If even a portion of the alert U.S. and Russian strategic missile forces is fired, large parts of the earth would plunge quickly into hell. Untold millions of people would be smashed, blasted, crushed, vaporized, and burned to death. The initial blasts would create radiation-filled shock waves of outward pressure that would topple skyscrapers, shred people with flying glass and debris, and hurl them across cities. Electromagnetic pulses from air bursts would decapitate the nervous systems of the world’s economy by blowing out fiber-optic lines, power grids, cell phones and electrical circuits, banking systems, and air traffic control networks.

The fireballs would transform into mushroom clouds of condensed water and debris that would rise high into the stratosphere, expand to 50-mile diameters, and shower the earth with radioactive fallout for decades to come. By the end of the first day, hospitals would be overwhelmed, mass fires would rage, and cities and suburbs would be consumed with riots, chaos, and attempted mass migrations. Nations would be in full-scale collapse, and hundreds of millions of people would be dead inside of a week.

This is what we are talking about when we talk about nuclear war.

And this is why total nuclear disarmament must be the most urgent priority of every government on Earth.

William Doyle is a New York Times bestselling, award-winning author and TV producer. His books include An American Insurrection: James Meredith and the Battle of Oxford, Mississippi, 1962 (Doubleday, 2002); Navy SEALs: Their Untold Story (co-authored with former U.S. Navy SEAL Dick Couch, HarperCollins, 2014); PT 109: An American Epic of War, Survival and the Destiny of John F. Kennedy (HarperCollins, 2015) Let the Children Play (co-authored with Pasi Sahlberg, Oxford University Press, 2019) and many others.

The United States Submission to China

Scott Pelly of 60 Minutes aired an interview with President Biden and National Review noted this in part:

PELLEY: It’s the highest inflation rate, Mr. President, in 40 years.

BIDEN: I got that. But guess what we are. We’re in a position where for the last several months it hasn’t spiked. It has just barely, it’s been basically even, and in the meantime, we’ve created all these jobs, and prices have gone up, but they’ve been down for energy. The fact is that we’ve created 10 million new jobs, we’re in, since we came to office, we’re in a situation where we, the unemployment rate is up at 3.7 percent, one of the lowest in history, we’re in a situation where manufacturing is coming back to the United States in a big way, and look down the road, we have massive investments being made in computer chips and employment, so I, look, this is a process, this is a process.

Inflation is the top political concern for voters right now, and according to a recent poll, 59 percent of voters who name inflation as their top concern plan to vote Republican in November. “This is a process” is not likely to persuade them out of that choice.

***

Is it a process to allow China to have access to limitless investment in the United States in the form of real estate, technology, education and social media to list a few? Seems so –>

***

What's Pushing China's Tech Sector So Far Ahead? - Knowledge at Wharton citation

Wharton summarizes it much the same way. In part:

Knowledge at Wharton: How has the tech sector in China been able to develop so quickly?

Fannin: Some of it has to do with venture capital investment. And some of that venture capital investment has come from Sand Hill Road [Silicon Valley], funded by our pension funds, our universities, our endowments, our family offices. But I also think a lot of it has to do with China’s own entrepreneurial culture. It’s innovating very fast. It’s moving very swiftly. They are working nonstop. China’s entrepreneurs and the tech sector are just very ambitious. It’s unstoppable.

Knowledge at Wharton: “Social” seems to be a key word when talking about the Chinese economy. Are e-commerce and social media playing big roles in China’s becoming such an influential global player?

Fannin: Social commerce is all about online shopping and sharing and prizes and games. It’s a business model that we really don’t have in the U.S. Social commerce has come on very strong. There is a [group-buying platform] called Pinduoduo, which went public in New York last year and has gone on to become one of these tech giants in just three years’ time. They are already China’s second-largest e-commerce player, and they’ve developed this whole new business model around social commerce.

WSJ: Chinese investment in U.S. venture-capital funds is flowing, demonstrating that economic ties between Silicon Valley and China remain deep despite political and national security risks, according to investors, government officials and a new report.

Chinese investment is on pace to reach about $880 million this year, the second-highest level in at least a dozen years, according to the think tank Foundation for Defense of Democracies. The report, a novel effort to quantify the opaque flow of money from China to U.S. venture-capital firms, shows Chinese government entities, funds, private individuals and corporations have invested at least $4 billion into U.S. venture firms since 2010, with at least another $3.5 billion going to U.S. private-equity firms.

Silicon Valley investors and national security analysts say Chinese capital continues to back U.S. venture-capital firms large and small, sometimes accounting for a fraction of a venture fund and at times much more. U.S. government officials say their primary concerns have less to do with the amount invested, but are more about the investors’ personal and business relationships in Beijing, ability to access technical information and influence at the venture-capital firm.

The issue, said government officials, is that the Chinese can use their roles as investors to gain know-how for launching a startup or scaling a technology company. Such insights can inform how Beijing funds and develops technology in areas strategically important to the U.S., such as semiconductors and artificial intelligence, according to the think tank report.

Chinese capital is found in large global funds Sequoia Capital and Lightspeed Venture Partners, and smaller Silicon Valley firms including Playground Global, GSR Ventures, Foothill Ventures and 11.2 Capital, according to the report and investors at those firms.

“I think the Chinese are as aggressive as ever” in targeting U.S. startups, said Michael Brown, outgoing director of the Defense Department’s Silicon Valley Defense Innovation Unit and author of a 2017 report that drew national attention to the role of Chinese capital in U.S. startups.

Foothill Ventures said Chinese investors contributed 1.59% of its current assets under management, and GSR Ventures said less than 5% of its U.S. fund came from China. Chinese investors are contributors to Lightspeed’s China fund only, and Sequoia’s China unit operates independently, spokeswomen for the firms said. The other firms declined to comment.

The think tank report’s findings highlight an area of resilience in the U.S.-China relationship as the two countries decouple their economies and U.S. policies aim to limit Chinese investment in U.S. technology sectors. According to the report, Chinese investment this year is set to be around nine times greater than a decade ago and come in below only 2020, when more than $1.2 billion flowed to American venture-capital funds.

Tracking Chinese investment in the U.S. is challenging because the limited partners who fund venture-capital firms often don’t make public disclosures, sometimes use labyrinthine structures to shroud investments and frequently ask firms in which they have invested to keep their identities secret. The report’s authors said the dollar figures undercount the actual total.

“Limited partner capital flows are grossly underestimated for their strategic value and effect,” said Nathan Picarsic, senior fellow at the Foundation for Defense of Democracies who co-wrote the report, called “The Weaponization of Capital,” along with his colleague Emily de La Bruyère. “Their influence shapes how the venture capitalist thinks, because the limited partners are the venture capitalist’s customers.”

The Foundation for Defense of Democracies is a Washington-based nonprofit with conservative leanings; its work advocates an aggressive U.S. response to challenges posed by China.

“China is always opposed to the U.S. generalizing the concept of national security and strengthening unreasonable investment review,” said Liu Pengyu, spokesman for the Chinese embassy in Washington. He said the U.S. has used national security arguments to “put obstacles in the way of normal investment.”

nvolvement by Chinese investors varies. Many are seeking a financial return and don’t have or want access to nonpublic information about individual startups, venture investors said. Other limited partners request introductions to startup founders or presentations from them, and get quarterly updates on startups’ progress and insights into technology sector trends, they said.

In a 2020 lawsuit, former partners at Silicon Valley venture-capital firm Hone Capital allege that the firm’s Chinese investor, China Science and Merchants Investment Management Group Co., Ltd., directed them to bring around 20 startups each quarter to China to pursue partnerships, joint ventures and additional investment. The lawsuit, which is ongoing, alleges the demands were problematic because of “legal issues regarding sharing sensitive technology with China.”

“They leveraged the system in the U.S. to gain access to more than 300 companies,” said Purvi Gandhi, a former Hone Capital partner.

It’s Real –> Financial Transactions over $600 to the IRS

There are countless payment platforms known as digital wallets (apps) now. PayPal, QuickBooks, Wise, Venmo, Zelle, Stripe, ApplePay, GooglePay, Xoom are just a few. Included should also be online sales apps like Marketplace by Facebook and OfferUp. Digital money is moved there also. All digital transactions get reported…..leading up to $600.00, in fact $600.00 has nothing to do with the whole matter..

Perhaps it is a good time to quit using them and going to the old fashion cash method which would put cashiers in a panic….

Why go to cash? Well, after the Senate passed the Inflation Reduction Act of 2022 and it was revealed that the IRS would be more than double it’s size…perhaps they need all those people to investigate all transactions leading up to that pesky $600.00.

The following website has a great summary 

by Jon Miltimore

A proposal from the Biden Administration that would require banks to monitor personal accounts and report all financial transactions over $600 to the IRS is under fire.

On Tuesday, Treasury Secretary Janet Yellen defended the proposal on CNBC’s “Squawk Box,” calling the collection of financial information “routine” after some in the banking community criticized it as an unprecedented invasion of privacy.

“It’s just a few pieces of information about individual bank accounts,” the secretary said.

Others disagree with Yellen’s description of the Treasury Department’s proposal, however.

Last month, economist Peter Jacobsen noted the change would give the IRS an “unprecedented look into the finances of many Americans.”

“Even the powerful political will behind the 2002 ‘Patriot Act’ only led to requirements that banks report suspicious transactions of $5,000 or more,” Jacobsen observed.

More recently, a former Kansas City Fed president argued the policy was a dangerous trap that was being laid for the middle class.

“It’s a massive search without a search warrant,” said Thomas Hoenig, who served as president of the Kansas City Fed from 1991 to 2011. “It will be the middle class and the upper middle class who will be caught in this.”

Hoenig also pointed out that, in contrast to wealthier Americans, most in the middle class do not have lawyers and accountants they can rely on to help them navigate matters with the IRS.

“In the collection of the data, there will be false positives,” Hoenig said. “That means individuals will be approached by the government about what they’re doing and they will have to spend additional funds to defend themselves. It’s a really bad idea.”

Hoenig also said the regulation would “cost billions,” since banks will have to collect the data and present it in a usable format for the IRS.

The Treasury Department regulation is being proposed as the Biden Administration seeks to whip up enough votes to push through a $3.5 trillion reconciliation spending bill. The legislation, Americans are told, will be financed through taxes on “the rich.”

The great economist Ludwig von Mises, however, once warned that individuals should be wary of collectivist policies in sheep’s clothing.

“The masses favor socialism because they trust the socialist propaganda of the intellectuals,” Mises observed. “The intellectuals, not the populace, are molding public opinion.”

One of the great lies that has been perpetuated for decades is that the welfare state can be financed if only the rich would pay “their fair share.” This message, unsurprisingly, polls quite well; but a brief look at history shows that there are limits to what the rich can shoulder in taxes—the welfare states of Europe are financed heavily by middle-class taxes—and the rich in the US already pay an astonishing percentage of the federal tax burden.

Yellen understands this, which is why the Treasury Department’s policy is designed to raise revenue by enforcing greater tax compliance—from everyone.

“There’s an enormous tax gap in the US estimated at $7 trillion over the next 10 years in terms of a shortfall of tax collections to what we believe we are owed,” says Yellen.

Yellen’s last words—what “we are owed”—are telling. They show that when it comes to bureaucrats getting property they see as theirs, something as abstract as “privacy” will not stand in their way.

Defenders of the Treasury Department policy say the IRS would be monitoring annual cash flows, not individual transactions, so that makes the policy okay.

“A simple way for the IRS to get a sense of where that might be is just a few pieces of information about individuals’ bank accounts,” Yellen said. “Nothing at the transaction level that would violate privacy; simply aggregate inflows into the account over the year and aggregate outflows. And that would really help the IRS target their auditing resources, which we have proposed to greatly expand.”

As Mises’ quote implies, government officials are often guilty of saying one thing and doing another. But in this case, Yellen is being refreshingly candid in what the Treasury Department is after.

The government wants to monitor the inflows and outflows of (private) individual bank accounts so the IRS can do more audits with “greatly expanded” resources to allow the federal government to collect trillions of dollars they are “owed.”

Take Yellen at her word—but don’t believe for a minute these audits will only fall on “the rich.”

Exactly When Does Fentanyl get Included in Title 42?

President Biden is completely absent and indifferent to this crisis and so is the Department of Justice. Just consider this from two days ago…

SANTA ANA, Calif. (KABC) — A Fullerton man is facing several felony charges for possessing enough fentanyl to kill 12 million people, nearly four times the population of Orange County, authorities announced Friday.

According to the Orange County District Attorney’s Office, 60-year-old Alfonso Gomez-Santana was arrested Wednesday when California Highway Patrol Officers pulled him over near South Lemon Street and Orangethorpe Avenue in Fullerton. Officers found four kilos of fentanyl inside his vehicle and 20 more kilos in his home. They also found $250,000 worth of fentanyl pills and 122 grams of methamphetamine, according to authorities.

Fentanyl Bust photo 1 Fentanyl Bust photo 2Fentanyl Bust photo 3 source

The district attorney’s office said it takes about 2 milligrams of fentanyl to be considered a lethal dose.

“It is unconscionable that someone who has the ability to kill 12 million people is facing just a handful of years in jail,” said Orange County District Attorney Todd Spitzer in a news release. “Fentanyl is a national epidemic that killed more than 100,000 Americans last year and it’s not going to stop unless we have the tools as prosecutors to hold these drug dealers and drug manufacturers accountable for peddling death. Every parent in America should be petrified that one day they are going to walk into their child’s bedroom and find them dead because their child thought they were experimenting with recreational drugs and instead drug dealers sold them a deadly dose of fentanyl. This is not fear-mongering; this is reality – and if we don’t start strengthening penalties for drug dealers it’s going to be the reality for you or someone you love.”

Gomez-Santana has been charged with one felony count of sale or transport of a controlled substance and two felony counts of possession of sale with intent to sell.He faces a maximum sentence of six years and eight months in jail if convicted on all counts.

In November, Orange County prosecutors issued a warning to drug dealers, manufacturers, and distributors, saying if their deals result in someone’s death, they could be charged with murder.

Now to the matter of Title 42….

There are many chapters inside Title 42….all under the code dealing with public health….it was originally launched in 1944 to prevent the spread of communicable diseases and is managed by the CDC. In short, it is to prevent entry into the United States anything that is a threat to U.S. health law. So how does fentanyl get into the United States? Mostly trafficking through the southern border and in other cases through the U.S. Postal system. We know precisely how the supply chain operates and who is responsible. Really you say?

Yes….learn about the King Pin Act –>

Introduction
The Administration has released the names of three Mexican organizations against which the President has decided to impose sanctions pursuant to the Foreign Narcotics Kingpin Designation Act (the “Kingpin Act”) (21 U.S.C. 1901-1908, 8 U.S.C. 1182).  Kingpin Act targets, on a worldwide basis, significant foreign narcotics traffickers, their organizations, and operatives.

Background
The Kingpin Act became law on December 3, 1999.  Its purpose is to deny significant foreign narcotics traffickers, their related businesses, and their operatives access to the U.S. financial system and to prohibit all trade and transactions between the traffickers and U.S. companies and individuals.  The Kingpin Act authorizes the President to take these actions when he determines that a foreign person plays a significant role in international narcotics trafficking.  Congress modeled the Kingpin Act on the effective sanctions program that the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) administers against the Colombian drug cartels pursuant to Executive Order 12978 issued in October 1995 (“Executive Order 12978”) under authority of the International Emergency Economic Powers Act (“IEEPA”).

Implementation
The Kingpin Act requires that the Secretary of the Treasury, the Attorney General, the Secretary of State, the Secretary of Defense, and the Director of the Central Intelligence Agency coordinate to identify drug kingpins and propose them to the President for sanctions.  The Department of Homeland Security and the Directorate of National Intelligence are also included in the process.  The Act calls for the President to report to specified congressional committees by June 1 of each year on those “foreign persons [he] determines are appropriate for sanctions” and stating his intent to impose sanctions upon those Significant Foreign Narcotics Traffickers pursuant to the Act.  While previous Presidential determinations have been tied to the statutory June 1 timetable, the President may also identify Significant Foreign Narcotics Traffickers at any other time pursuant to the Act.

Under the Kingpin Act, the President may identify foreign entities as well as foreign individuals as Significant Foreign Narcotics Traffickers, or “kingpins”: a foreign person is defined in the Act as “any citizen or national of a foreign state or any entity not organized under the laws of the United States, but does not include a foreign state.”  Likewise, the President is not required to designate Colombian persons exclusively under Executive Order 12978, and may impose sanctions on a Colombian individual or entity under the Kingpin Act, which is intended to be global in scope.

The long-term effectiveness of the Kingpin Act is enhanced by the Department of the Treasury’s authority (in consultation with appropriate government agencies and departments) under the Act to make derivative designations of foreign individuals and entities that provide specified types of support or assistance to designated traffickers, or that are owned or controlled by such traffickers, or that act on their behalf.  This authority broadens the scope of application of the economic sanctions against kingpins to include their businesses and operatives.  Including this year’s action, the President has named a total of 78 Significant Foreign Narcotics Traffickers since the first set of kingpins was announced on June 1, 2000.  The Department of the Treasury’s OFAC has issued a total of 496 derivative designations pursuant to its authorities under the Kingpin Act; these entities and individuals are subject to the same sanctions that apply to kingpins.

Individuals who violate the Kingpin Act are subject to criminal penalties of up to 10 years in prison and/or fines pursuant to Title 18 of the U.S. Code.  Entities that violate the Act face criminal penalties in the form of fines up to $10 million; officers, directors, or agents of an entity who knowingly participate in a violation of the Kingpin Act are subject to criminal penalties of up to 30 years in imprison and/or a $5 million fine.  The Kingpin Act also provides for civil penalties of up to $1.075 million against individuals or entities that violate its provisions.

So, most of us know about some king-pins….El Chapo was a king-pin…then there are the cartels that are making billions per month not only trafficking narcotics but people across our southern border.
It all begins in China and the CCP, the Chinese Communist Party. There are other countries for sure inside the supply chain map that include India, Laos, Myanmar, Cambodia, Thailand and more…the Chinese mafia is well connected to the Mexican mafia, hence the Mexican drug cartels.
The Sinaloa cartel has a sizeable network in China for narcotics including fentanyl but also for money laundering. Then in balance, China has a large network in Mexico. There are a couple of standout names of which you can research on your own but they include:
14K
Zheng Cartel
Broken Tooth
Tse Chi Lop’s Sam Gor Syndicate
Big Circle Boys
In closing but not the end of the story, the U.S. Treasury has a 33 page list of ‘sanctions pursuant to the Foreign Narcotics KingPin Designation Act. Sanctions dont work so well …..do they?