Starfish Prime, a Response to North Korea?

Posted on September 4, 2017September 4, 2017 by Denise Simon

The United States knows all too well about an EMP. With regard to North Korea, the Kim regime has acknowledged it was active in EMP pursuits. The U.S. has EMP weapons developed by Boeing.

So what is Starfish Prime?

On July 9, 1962 — 50 years ago today — the United States detonated a nuclear weapon high above the Pacific Ocean. Designated Starfish Prime, it was part of a dangerous series of high-altitude nuclear bomb tests at the height of the Cold War. Its immediate effects were felt for thousands of kilometers, but it would also have a far-reaching aftermath that still touches us today.

In 1958, the Soviet Union called for a ban on atmospheric tests of nuclear weapons, and went so far as to unilaterally stop such testing. Under external political pressure, the US acquiesced. However, in late 1961 political pressures internal to the USSR forced Khrushchev to break the moratorium, and the Soviets began testing once again. So, again under pressure, the US responded with tests of their own.

It was a scary time to live in.

The US, worried that a Soviet nuclear bomb detonated in space could damage or destroy US intercontinental missiles, set up a series of high-altitude weapons tests called Project Fishbowl (itself part of the larger Operation Dominic) to find out for themselves what happens when nuclear weapons are detonated in space. High-altitude tests had been done before, but they were hastily set up and the results inconclusive. Fishbowl was created to take a more rigorous scientific approach. Read more here.

The Wall Street Journal published an item offering insight regarding North Korea and the threat of an EMP and the United States is not prepared for such a weapon in either a defensive or offensive posture without some exceptional consequence to life.

As South Korea performed some live fire drills in response to the last nuclear test by North Korea that measured a 6.3 on the Richter Scale, at issue is the immediate line of an estimated thousands of rockets pointed at South Korea. It would take a robust offensive first strike to remove this border threat in cadence with other strike operations into the North Korea tunnel network where most of the weaponry is located.

Finally, South Korea’s leader has taken a more aggressive posture, leaning towards a military operation and this could bring the closer to Japan which is a positive indication where activities to neutralize North Korea is tantamount.

Tensions sharply escalated Sunday as the communist regime conducted what it claims to have been a test of a hydrogen bomb mountable on an intercontinental ballistic missile (ICBM). The test was only the latest in a recent series of saber-rattling, including two ICBM tests in July.

In its report to the legislature’s defense committee, the defense ministry said that it, in consultation with Washington, will seek to deploy a nuclear-powered aircraft carrier, strategic bombers and other powerful assets to the peninsula as a response to the North’s nuclear experiment.

It also unveiled its plan to stage unilateral live-fire drills involving Taurus air-to-surface guided missiles mounted on its F-15K fighter jets. The missile, with a range of 500 kilometers, is capable of launching precision strikes on the North’s key nuclear and missile facilities.

In his assessment of the sixth nuke test, Song said that the North is presumed to have reduced the weight of a nuclear warhead to below 500 kilograms. More here.

Adding more sanctions on China or those doing business with North Korea does not stop or deter North Korea at all. China knows precisely what North Korea is doing and has not moved to stop any of these missile or nuclear activity.

Photo

North Korea’s nuclear test occurred in Punggye-ri, the same site where a nuclear test occurred in January 2016, about 50 miles away from the border with China. Tremors were felt in the Chinese border city of Yanji, home to about 400,000 people, Chinese media reported. The latest test occurred as China hosted the leaders of the BRICS (Brazil, Russia, India, China and South Africa) countries for their annual summit. China “strongly condemned” North Korea’s provocation and a draft communique from the BRICS summit quoted in Chinese state media “strongly deplored” North Korea’s nuclear test but called for a peaceful solution to the crisis. More here.

All the alleged professional continue to say the United States, Japan and South Korea have no good options with regard to North Korea, and there may be some truth to that given the descriptions as defined here.

What is left out of all conversations is the cyber abilities of the United States, knocking out North Korea’s space segments on existing satellites owned by China, Iran or Russia and lastly once again dusting off the files of Starfish Prime as described below:

Launched via a Thor rocket and carrying a W49 thermonuclear warhead (manufactured by Los Alamos Scientific Laboratory) and a Mk. 2 reentry vehicle, the explosion took place 250 miles (400 km) above a point 19 miles (31 km) southwest of Johnston Island in the Pacific Ocean. It was one of five tests conducted by the USA in outer space as defined by the FAI. It produced a yield equivalent to 1.4 megatons of TNT.

The Starfish test was one of five high altitude tests grouped together as Operation Fishbowl within the larger Operation Dominic, a series of tests in 1962 begun in response to the Soviet announcement on August 30, 1961 that they would end a three-year moratorium on testing.^[2]

In 1958 the United States had completed six high-altitude nuclear tests, but the high-altitude tests of that year produced many unexpected results and raised many new questions. According to the U.S. Government Project Officer’s Interim Report on the Starfish Prime project:

“Previous high-altitude nuclear tests: YUCCA, TEAK, and ORANGE, plus the three ARGUS shots were poorly instrumented and hastily executed. Despite thorough studies of the meager data, present models of these bursts are sketchy and tentative. These models are too uncertain to permit extrapolation to other altitudes and yields with any confidence. Thus there is a strong need, not only for better instrumentation, but for further tests covering a range of altitudes and yields.”^[3]

More details here.

Now al Shabaab has Ownership of Uranium Set for Iran

Posted on August 31, 2017August 31, 2017 by Denise Simon

In 2015:

Somali Minister of Petroleum and Mineral Resources, Mohamed Muktar Ibrahim has talked about the Somalia’s Mineral Resources saying that they have made contacts with International Atomic Energy Agency (IAEA) on the controlling of minerals that can be use chemical weapons.

He noted they are taking measures to prevent raw materials like Uranium to fall into the hands wrong people.

In an exclusive interview he gave to Universal TV, the minister highlighted that they also held talks with UNDP which had information on mining depots in the country as it has surveyed on the country’s mineral deposits in the years between 1965 and 1975.

In a UN report released in 1968 shows that Somalia is a hotspot for uranium.

Somali government is busy amending some provision in the Mineral Law 1984 and compliance with the current conditions in the country now.

To read the full letter, go here.

An Al Qaeda affiliate has seized control of uranium mines in Africa with the intent of supplying the material to Iran, according to a diplomatic letter from a top Somali official appealing to the U.S. for “immediate military assistance.”

The letter, reviewed by Fox News, was addressed to U.S. Ambassador to Somalia Stephen Schwartz. Somalia’s Ambassador to the U.S. Ahmed Awad confirmed to Fox News on Thursday that the letter “has indeed been issued” by Minister of Foreign Affairs Yusuf Garaad Omar, whose signature is on the document.

The Aug. 11-dated letter delivered an urgent warning to the U.S. that the al-Shabaab terror network has linked up with the regional ISIS faction and is “capturing territory” in the central part of the country.

“Only the United States has the capacity to identify and smash Al-Shabaab elements operating within our country. The time for surgical strikes and limited engagement has passed, as Somalia’s problems have metastasized into the World’s problems,” the letter said. “Every day that passes without intervention provides America’s enemies with additional material for nuclear weapons. There can be no doubt that global stability is at stake.”

The State Department would not comment on the diplomatic letter, but did not dispute its authenticity and referred Fox News to the government of Somalia. Iran was supposed to pull back on its nuclear program under the terms of the agreement struck with the Obama administration. More here from FNC.

***

Background:

Is Somalia a safe haven for terrorists?

On one hand, Somalia is a chaotic, poor, battle-weary Muslim country with no central government and a long, unguarded coastline. Its porous borders mean that individuals can enter without visas, and once inside the country, enjoy an almost complete lack of law enforcement. Somalia has long served as a passageway from Africa to the Middle East based on its coastal location on the Horn of Africa, just a boat ride away from Yemen. These aspects make Somalia a desirable haven for transnational terrorists, something al-Qaeda has tried to capitalize on before, and is trying again now.

On the other hand, Somalia is different from other failed states in several ways. While it is roughly the size of Afghanistan, its landscape lacks Afghanistan’s many natural hiding places and does not offer the topographical haven of other states like Yemen. It is also a fiercely clan-oriented culture with an aversion to foreign presence of any kind, including Arab jihadi organizations. “When you get these extremist ideologies, the Somalis look at them and they are immediately perceived as foreign,” says Bruton, “They’re perceived as Arab. It’s an Arab ideology. And just as the Somalis are hostile to American ideology, they’re hostile to Arab ideology as well.” Finally, the Somalis–Sufi Muslims since the birth of Islam in the seventh century–have moderate religious views; until recently, Taliban-style fundamentalism was unfamiliar in the country.

These factors were responsible for al-Qaeda’s failure in the 1990s, when it tried working closely with al-Ittihad al-Islami (AIAI). Al-Qaeda was unable to root itself in Somalia’s clan system, and, according to former ambassador to Ethiopia David Shinn, “overestimated the degree to which Somalis would become jihadists.” The experience of the al-Qaeda operatives was so treacherous that Bruton says: “U.S. intelligence officials came up with a verdict that Somalia was actually inoculated from foreign terrorist groups, that it’s just fundamentally inhospitable, that the clan system is so closed to foreigners that there’s just no way that these groups can operate.”

Since the Ethiopian invasion, al-Qaeda has seen a resurgent connection to the country, and HI and al-Shabaab control most of the territory. However, experts disagree over whether Somalia could be the base for an international attack or whether the group will continue its domestic focus. “Personally, my view is that they don’t have much to gain by [partnering with al-Qaeda to conduct an international attack],” Bruton says. “And they probably don’t have the capacity to do it. But it’s worrisome that they’re making the threats, so I think it’s something to be watched and assessed very carefully. But right now, I would say the odds of a transnational attack are very, very low.” More here.

Hawaii, Missile Defense Test MRBM Success

Posted on August 30, 2017August 30, 2017 by Denise Simon

Aegis BMD System Intercepts Target Missile

Aug. 30, 2017

The Missile Defense Agency and U.S. Navy sailors aboard the USS John Paul Jones (DDG 53) successfully conducted a complex missile defense flight test, resulting in the intercept of a medium-range ballistic missile (MRBM) target using Standard Missile-6 (SM-6) guided missiles during a test off the coast of Hawaii today.

Photo

John Paul Jones detected and tracked a target missile launched from the Pacific Missile Range Facility on Kauai, Hawaii with its onboard AN/SPY-1 radar, and onboard SM-6 missiles executed the intercept.

“We are working closely with the fleet to develop this important new capability, and this was a key milestone in giving our Aegis BMD ships an enhanced capability to defeat ballistic missiles in their terminal phase,” said MDA Director Lt. Gen. Sam Greaves. “We will continue developing ballistic missile defense technologies to stay ahead of the threat as it evolves.”

Photo

This test, designated Flight Test Standard Missile-27 Event 2 (FTM-27 E2), marks the second time that an SM-6 missile has successfully intercepted a medium-range ballistic missile target.

Aegis BMD is the naval component of the Ballistic Missile Defense System. MDA and the U.S. Navy cooperatively manage the Aegis BMD program. Additional information about all elements of the ballistic missile defense system can be found here.

*** Meanwhile in Nevada, testing of upgraded nuclear weapons components were performed.

WASHINGTON, D.C. – The Department of Energy’s National Nuclear Security Administration (DOE/NNSA) and U.S. Air Force completed two qualification flight tests of B61-12 gravity bombs August 8 at Tonopah Test Range in Nevada.

The non-nuclear test assemblies, which were dropped from an F-15E based at Nellis Air Force Base, evaluated the weapon’s non-nuclear functions and the aircraft’s capability to deliver the weapon.

These tests are part of a series over the next three years to qualify the B61-12 for service. The first qualification flight test occurred in March.

“The B61-12 life extension program is progressing on schedule to meet national security requirements,” said Phil Calbos, acting NNSA deputy administrator for Defense Programs. “These realistic flight qualification tests validate the design of the B61-12 when it comes to system performance.”

The flight test included hardware designed by Sandia and Los Alamos National Laboratories, manufactured by the Nuclear Security Enterprise plants, and mated to the tail-kit assembly section, designed by the Boeing Company under contract with the Air Force Nuclear Weapons Center.

The B61-12 consolidates and replaces four B61 bomb variants in the nation’s nuclear arsenal. The first production unit is scheduled to be completed by March 2020.

These activities are not exclusive to the nuclear threat posed by North Korea, but include other rogue nations such as Iran, Pakistan, Russia and those allied such that any weapons are transferred to another nation as in Syria or worse Venezuela.

The United States is not alone in these activities which does bring some comfort.

Theresa May refuses to rule out military action and cyber attacks over North Korea missile launches

Theresa May has refused to rule out using cyber warfare or even taking part in military action against North Korea if it does not stop firing missiles in “illegal” acts of provocation.

Mrs May arrived in Japan on Wednesday morning in the midst of an escalating crisis over Pyongyang’s latest missile launch, and will have lengthy discussions with Prime Minister Shinzo Abe about what can be done.

She arrived with a message for China’s President Xi Jinping, telling him in no uncertain terms that it is his responsibility to rein in Kim Jong-un.

She said China, which has the military might to remove Mr Kim from power if it chose to, must do “everything it can” to make North Korea desist from firing more missiles.

On Tuesday, Pyongyang launched a missile that flew over Japan before landing in the Pacific, triggering the national J-alert system which tells the Japanese population to take cover.

President Donald Trump has made it clear that all options remain on the table for dealing with North Korea, and during her overnight flight to Osaka Mrs May was asked four times by journalists if she would rule out joining military action against the Kim regime. Each time, she refused to address the question directly.

She also refused to rule out cyber warfare. Separately, a Whitehall source even raised the possibility that cyber warfare might already be in use, saying: “If we were doing that we certainly wouldn’t be telling you.”

Mrs May said: “The actions of North Korea are illegal, they are significant actions of provocation, it’s outrageous, that’s why we will be redoubling our efforts with our international partners to put pressure on North Korea to stop these illegal activities.

“China has a key role to play in this… I have said this to President Xi, I know others have as well, we think that China has that important role to play and we would encourage China to do everything it can to bring pressure to bear on North Korea to stop this.

“The UK is looking at the discussion around further sanctions and the sort of change that China can bring. We see China as being the key in this.”

During her three-day visit to Japan, Mrs May will become only the second foreign leader to attend a meeting of the country’s national security council, at which she will speak to Mr Abe and his advisers.

One of the key aims of the trip is to strengthen Britain’s cooperation with Japan over security and defence, and Mrs May will tomorrow board the aircraft carrier Izumo, the flagship of the Japanese Navy, where she will be briefed by Japanese and British military personnel.

She said: “It’s an important, long-standing relationship between the UK and Japan, they’re our closest partner in Asia and I’m looking forward to the opportunity to talk about a number of subjects – trade, of course, but also building on our defence and security co-operation.”

The Prime Minister’s visit came as the United Nations condemned North Korea’s “outrageous” firing of a ballistic missile over Japan on Tuesday, demanding Pyongyang halt its weapons programme but holding back on any threat of new sanctions on the isolated regime.

US Ambassador Nikki Haley said “something serious has to happen” but didn’t specify what.

British Ambassador Matthew Rycroft suggested members need to look at further strengthening of sanctions. Read more here to include graphics and video.

Location of N Korea Missile Launch over Japan, What we Know

Posted on August 29, 2017August 29, 2017 by Denise Simon

Why no country shot it down?

In part: While the US and Japan have conducted ballistic missile defense exercises and both have Aegis-equipped ships capable of shooting down some ballistic missiles, it would be extremely difficult for the US or Japan to intercept a North Korean intermediate or intercontinental ballistic missile in flight over Japan toward a target such as Guam. The Aegis system is capable of intercepting shorter-range missiles in mid-course with the SM-3 missile, and it also provides “terminal phase” defense with the SM-2 missile closer to the ballistic missile’s target. But it’s uncertain whether either system would be successful against a “pop up” attack with an ICBM.

The SM-3 Block IIA has an operational range of about 1,350 miles. But range isn’t the issue as much as the speed required to intercept. If a North Korean missile were fired to an altitude of over 500 kilometers, success in a shoot-down would depend greatly on how quickly the missile was tracked and the timing of an interceptor launch. Based on the time/distance envelopes for SM-2 and SM-3 missile intercepts calculated from Joan Johnson-Freese (a professor at the Naval War College and a lecturer at Harvard University) and Ralph Savelsberg (an assistant professor at the Netherlands Defence Academy), an Aegis defender would only have a few minutes to get off a shot at an ICBM launch from North Korea. Aegis-equipped destroyers and cruisers would have to be dangerously close to the North Korean coast to get a chance to strike an ICBM in “boost” phase as it rose and could be vulnerable to North Korean submarines if an actual attack were planned. Read more here.

***

North Korea has taken steps in recent months to disguise their missile-related activities, including fueling rockets inside structures, outside of aerial view.

There are three basic ways the U.S. gathers most of its foreign intelligence: collecting information from human spies; intercepting electronic communications; and observing what’s happening on the ground, mainly with satellites.

The National Security Agency, which hacks computers and intercepts email, has had some success pulling bits and bytes out of North Korea, former officials say, but North Korea is much less forgiving than most of its targets. That’s because most of the country is not connected to the internet and few people have cellphones. To the extent that the regime communicates electronically, it has made increasing use of encryption, experts say.

“If you look at that satellite picture [of Asia] of the lights at night from the satellite, there is one dark area with no lights on, and that is North Korea,” Coats told Congress. “Their broadband is extremely limited. So using that as an access to collection — we get very limited results.” More here.

N. Korea must be met with stronger action: U.S. experts

WASHINGTON, Aug. 29 (Yonhap) — North Korea must be met with stronger action if it is to be stopped from triggering a catastrophe on the Korean Peninsula, U.S. experts said Tuesday.

The firing of an intermediate-range ballistic missile over Japan earlier in the day was a rare hostile act that increased the chances of a military confrontation in the volatile region.

The United States and South Korea must take decisive action to demonstrate that the regime in Pyongyang will not be allowed to get away with any more provocations, and China, they noted, will have to play a key role in that effort.

KCNA has released photos of the HS-12 launch that overflew Japan

“China has the power to increase the pressure on North Korea and must take steps towards doing so,” said Donald Manzullo, president of the Korea Economic Institute of America. “The longer China continues to refrain from using all of the leverage at its disposal to convince North Korea to return to talks, the more likely North Korea is to miscalculate.”

Beijing is Pyongyang’s only major ally and key benefactor. U.S. President Donald Trump and others have urged China to do more to rein in its wayward neighbor, but Beijing has refused to bear responsibility for the North Korean nuclear problem.

Bruce Bennett, a senior researcher at RAND Corp., said the latest launch could have resulted in part from a lack of action by the U.S. and South Korea against what was seen as a low-intensity provocation Saturday. North Korea launched three short-range ballistic missiles then.

“If the (U.S. and South Korea) fail to act seriously against (Tuesday’s) test, the North may feel that it can commit an even more serious provocation, while the exercises are ongoing, perhaps even another intercontinental ballistic missile test or a nuclear weapon test,” he said in an email.

Bennett was referring to the Ulchi Freedom Guardian military exercise currently under way between South Korea and the U.S. Analysts have said the back-to-back provocations were staged in response to the annual drills, which Pyongyang views as rehearsals for an invasion.

North Korea may also believe it has China’s backing because Beijing recently proposed the allies cancel their drills in exchange for a halt to North Korea’s missile and nuclear testing, he noted.

Robert Manning, a senior fellow at the Atlantic Council, said the U.N. Security Council is likely to adopt tougher sanctions against Pyongyang.

“There may be other steps Trump is considering to take unilaterally, whether cyber or kinetic. The key question is: How far is China prepared to go?” he said in a separate email. “But even if effective, sanctions will take time to have an impact — nine to 12 to 15 months. The danger is that this cycle of tensions rises to the point where the U.S. seeks more immediate results. That could be catastrophic.”

Media preview

The North Korean single stage Hwasong-12 is a liquid fueled IRBM of estimated 4500 km range.

The Hwasong-2 appears to be a stretched improved version of the Hwasong-10 IRBM and appears to be single staged.

The missile was first shown in the 2017 military parade and has conducted its first successful flight after three failures in May 2017 from a site near Kuosong, likely Panghyon Air Base, on a lofted short range trajectory of 787 km range and 2111 km apogee height, which hints to a maximum range of about 4500 km.

For more information regarding the DPRK airfields and what is underground at those airfields across the country, go here.

If You Don’t Think the FBI is Busy, N Korea Investigation

Posted on August 22, 2017August 22, 2017 by Denise Simon

Frankly, $11 million is not much considering what North Korea and the Kim regime are doing in the illicit activity realm.

Meanwhile Kim issued yet another threat to President Trump:

North Korea vows merciless retaliation in response to drills

FNC: President Trump is pictured looking out over a Guam graveyard cluttered with crosses in a photoshopped image from the newest propaganda film — and grim warning — from North Korea.

The regime followed the video with a statement posted through its KCNA news agency, saying Trump “spouted rubbish” and frequently tweeted about “weird articles of his ego-driven thoughts” and attacking South Korea’s “puppy-like” Defense Minister Song Young-moo for “pinning hope on that mad guy.”

But the picture of a graveyard believed to be in Guam may be the most rattling in the video, given dictator Kim Jong Un’s repeated threats to strike the U.S. territory with a missile. The video also features Vice President Pence engulfed in flames. More here.

FOR IMMEDIATE RELEASE

Tuesday, August 22, 2017

United States Files Complaints to Forfeit More Than $11 Million From Companies That Allegely Laundered Funds To Benefit Sanctioned North Korean Entities

WASHINGTON – The United States filed two complaints today seeking imposition of a civil money laundering penalty and to civilly forfeit more than $11 million from companies that allegedly acted as financial facilitators for North Korea, announced U.S. Attorney Channing D. Phillips, Michael DeLeon, Special Agent in Charge of the FBI’s Phoenix Field Office, and Michael J. Anderson, Special Agent in Charge of the FBI’s Chicago Field Office.

The actions, filed in the U.S. District Court for the District of Columbia, represent two of the largest seizures of North Korean funds by the Department of Justice. One complaint seeks $6,999,925 associated with Velmur Management Pte Ltd., a Singapore-based company. The other seeks $4,083,935 from Dandong Chengtai Trading Co. Ltd., also known as Dandong Zhicheng Metallic Material Co., Ltd., a company in Dandong, China.

The lawsuits follow a similar complaint, filed in June 2017, seeking more than $1.9 million from Mingzheng International Trading Limited, a company based in Shenyang, China.

The complaints allege that the companies have participated in schemes to launder U.S. dollars on behalf of sanctioned North Korean entities. According to the complaints, the companies participated in financial transactions in violation of the International Emergency Economic Powers Act (IEEPA), the North Korean Sanctions and Policy Enhancement Act of 2016, and federal conspiracy and money laundering statutes. Today’s complaints are the first filed actions based on the 2016 North Korean Sanctions and Policy Enhancement Act.

“These complaints show our determination to stop North Korean sanctioned banks and their foreign financial facilitators from aiding North Korea in illegally accessing the United States financial system to obtain goods and services in the global market place,” said U.S. Attorney Phillips. “According to the complaints, these front companies are supporting sanctioned North Korean entities, including North Korean military and North Korean weapons programs. Working with our law enforcement partners, we will vigorously enforce vital sanctions laws.”

“The complaints allege that these companies are assisting North Korea in evading sanctions, which is in direct conflict with our national security interests,” said Special Agent in Charge DeLeon, of the FBI’s Phoenix Field Division. “We will continue to use the necessary resources to expose these types of actions and investigate those who utilize the U.S. banking systems for illegal activities.”

U.S. v. Velmur Management Pte., Ltd. (Velmur) and Transatlantic Partners Pte. Ltd. (Transatlantic)

This complaint alleges that Velmur and Transatlantic Partners Pte. Ltd. (Transatlantic) laundered United States dollars on behalf of sanctioned North Korean banks that were seeking to procure petroleum products from JSC Independent Petroleum Company (IPC), a designated entity. The complaint also seeks a civil monetary penalty against Velmur and Transatlantic for prior sanctions and money laundering violations related to this scheme.

According to the complaint, designated North Korean banks use front companies, including Transatlantic, to make U.S. dollar payments to Velmur. The complaint relates to funds that were transferred through four different companies and remitted to Velmur to wire funds to JSC Independent Petroleum Company (IPC), a Russian petroleum products supplier. On June 1, 2017, the Department of the Treasury’s Office of Foreign Asset Controls (OFAC) designated IPC. The designation noted that IPC had a contract to provide oil to North Korea and reportedly shipped over $1 million worth of petroleum products to North Korea.

The United Nations Panel of Experts reported in 2017 on the methods used by North Korean banks to evade sanctions and continue to access the international banking system. Specifically, despite strengthened financial sanctions, North Korean networks are adapting by using greater ingenuity in accessing formal banking channels. This includes maintaining correspondent bank accounts and representative offices abroad which are staffed by foreign nationals making use of front companies. These broad interwoven networks allow the North Korean banks to conduct illicit procurement and banking activity.

An FBI investigation revealed that Velmur’s and Transatlantic’s activities mirror this money laundering paradigm. Specifically, companies identified in the complaint and Transatlantic act as front companies for designated North Korean banks.

The government is seeking to forfeit $6,999,925 that was wired to Velmur in May 2017. The U.S. dollar payments, which cleared through the U.S., are alleged to violate U.S. law, because the entities were surreptitiously making them on behalf of the designated North Korean Banks, whose designation precluded such U.S. dollar transactions. The government also is seeking imposition of a monetary penalty commensurate with the millions of dollars allegedly laundered by Velmur and Transatlantic.

U.S. v. Dandong Chengtai Trading Co., Ltd. (Dandong Chengtai), also known as Dandong Zhicheng Metallic Material Co., Ltd.

This complaint alleges that Dandong Chengtai and associated front companies controlled by Chi Yupeng, a Chinese national, comprise one of the largest financial facilitators for North Korea. According to the complaint, Dandong Chengtai conspired to evade U.S. economic sanctions by facilitating prohibited U.S. dollar transactions through the United States on behalf of the North Korean Workers’ Party, a sanctioned entity.

The complaint further alleges that the North Korean government relies on exports of coal as its primary means of obtaining access to foreign currency, and that the North Korean military controls the amount of coal produced and its subsequent export. The North Korean government uses proceeds of coal sales to fund its weapons of mass destruction program and missile programs. Coal generates more than $1 billion in revenue per year for North Korea. The investigation revealed that Dandong Chengtai is one of the largest importers of North Korean coal in China, and has continued to engage in illicit U.S. dollar transactions related to its coal sales to benefit North Korea.

The complaint alleges that Dandong Chengtai facilitated wire transfers denominated in U.S. dollars for purchases of goods that are well outside the scope of a mineral trading company. Financial records reveal that purchases of bulk commodities such as sugar, rubber, petroleum products, and soybean oil, among others, were in fact destined for North Korea.

As reported in findings by the Treasury Department and the United Nations Panel of Experts, North Korean financial facilitators frequently establish and maintain offshore U.S. dollar accounts for the purposes of remitting wire transfers denominated in U.S. dollars on behalf of sanctioned North Korean entities. These broad interwoven networks allow sanctioned North Korean entities to conduct illicit procurement and banking activity.

The government is seeking to forfeit $4,083,935 that Dandong Chengtai wired on June 21, 2017 to Maison Trading, using their Chinese bank accounts. The investigation revealed that Maison Trading is a front company operated by a Dandong Chengtai employee. These U.S. dollar payments, which cleared through the United States, are alleged to violate U.S. law, because the recent North Korean sanctions law specifically barred U.S. dollar transactions involving North Korean coal and the proceeds of these transactions were for the benefit of the North Korea Worker’s Party, whose designation precluded such U.S. dollar transactions.

This case relates to a previously unsealed opinion from Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia, which found that probable cause existed to seize funds belonging to Dandong Chengtai.

The claims made in the complaints are only allegations and do not constitute a determination of liability.

The FBI’s Phoenix Field Office is investigating the case involving Velmur Management Pte Ltd. and Transatlantic Partners Pte., Ltd. The FBI’s Chicago Field Office is investigating the case involving Dandong Chengtai Trading Co. Ltd. Both investigations are being supported by the FBI Counterproliferation Center.

Assistant U.S Attorneys Arvind K. Lal, Zia M. Faruqui, Christopher B. Brown, Deborah Curtis, Ari Redbord, and Brian P. Hudak, all of the U.S. Attorney’s Office for the District of Columbia, are prosecuting both cases. Paralegal Specialist Toni Anne Donato and Legal Assistant Jessica McCormick are providing assistance.