Category Archives: DOJ, DC and inside the Beltway

UK Money-laundering $2.9 Billion Linked to Azerbaijan

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May, 2017:

The largest bank in Azerbaijan has halted its foreign debt payments and will start restructuring talks with creditors after a currency crisis in the Caspian Sea nation drove the lender to the brink of collapse.

Under a restructuring plan published on Friday, the International Bank of Azerbaijan said its “designated financial indebtedness” was at $3.3 billion as of April 18. It missed a principal and interest payment on a $100 million subordinated loan on May 10, according to an emailed statement from the government-owned lender on Thursday. More here.

What is the Azerbaijani Laundromat?

A scheme to curry influence, pay lobbyists, apologists and European politicians and to launder cash. The $2.9bn (£2.2bn) operation ran between 2012 and 2014 – meaning that on average $3m was channelled out of Azerbaijan every day. The source of money isn’t always clear, but it comes from companies linked to Azerbaijan’s president, Ilham Aliyev, state ministries and the International Bank of Azerbaijan, the country’s largest bank, which recently filed for bankruptcy protection. The cash was transferred into four offshore-managed UK companies. From there, it was spent in various countries, including Germany, the UK, France, Turkey, Iran and Kazakhstan.

How was it done?

By clever use of the west’s financial system. Danske, Denmark’s largest bank, handled the payments via a small branch office in Estonia. It noticed nothing amiss. The organisers of the scheme exploited Britain’s weakly regulated company system. They registered four firms at Companies House in London. These were Hilux Services, Polux Management, Metastar Invest and LCM Alliance. The first two were incorporated in Glasgow, the third in Birmingham and the fourth in Hertfordshire. The beneficial owner of the firms is a secret. More here.

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UK Companies at the Heart of $2.9 Billion Money-Laundering Circle

UK Companies at the heart of $2.9 billion money-laundering circle

UK failing to end its complicity in global corruption

4th September 2017, London – A new investigation has shown UK registered companies to be at the centre of laundering $2.9 billion out of Azerbaijan, highlighting that the UK is failing to end its complicity in global corruption. These funds was used to pay-off politicians, purchase luxury goods and act as a slush fund for those close to the Azeri regime using money that appears to have been stolen from the International Bank of Azerbaijan, which is currently restructuring its debt because of funding problems.

The investigation found that four UK registered companies were at the centre of this scheme and essential to its success. These four companies formed a core part of over 16,000 transactions made by the ‘Azerbaijani laundromat’ between 2012 and 2014. Although registered in the UK, previous research by Transparency International UK found that these four companies were ultimately controlled in secretive offshore havens, where the real owners of companies are hidden from public view.

In recent years successive UK governments have made promises to close the loopholes that have left the UK, and its overseas territories, complicit in the laundering of corrupt money around the world. Over two years since the Government first outlined its intention to target corrupt money flowing through the UK, many of the promises have yet to be turned into action.

All four of these companies are either Scottish Limited Partnerships (SLPs) and Limited Liability Partnerships – forms of company that can be controlled by secretive companies based in offshore havens like the British Virgin Islands. Although new rules rushed in earlier this year require SLPs to report who they’re ultimately controlled by, and similar rules apply to LLPs, there are growing concerns that in practice these are not being enforced effectively. 

Duncan Hames, Director of Policy Transparency International UK, said:

“Knowing that UK registered companies were at the heart of a scheme that saw $2.9 billion stolen from Azerbaijan underlines just how damaging it is to be complicit in global corruption. These sums of money can be the difference between life and death for people around the world, and to know that they are instead being used to purchase luxury goods, line the pockets of corrupt politicians and improve the image of dictators, is particularly galling.”

“We are increasingly concerned that action on the promises made by successive governments to close the loopholes that make the UK attractive to money laundering, appears to have stalled. We have seen some regulatory change but it has gone from a core government mission to uncoordinated and piecemeal efforts.” 

“We’re calling on the UK Government to immediately enforce new laws to end the use of British companies as the getaway vehicle for corrupt individuals and organised criminal gangs. Much more than lip service is needed to fight global corruption. If a success is to be made of Brexit, the UK must uphold the highest standards of commerce and not end-up reducing itself to an offshore centre exposed to the risk of serving corrupt and repressive regimes from across the globe.” 

The UK Government is yet to deliver on its promise to introduce greater transparency around anonymous corporate ownership of luxury UK property, a key destination for laundered money, or produce a comprehensive anti-corruption strategy that sets out how it intends to end the UK’s role as a safe haven for corrupt wealth.

Notes:

The four UK companies at the heart of the Azerbaijani laundromat were Hilux Services LP, Polux Management LP, Metastar Invest LLP and LCM Alliance LLP. More details about the offshore companies controlling them are provided in the table below. Hundreds of businesses with similar secretive corporate structures are registered at the same addresses as these four companies.

 

UK Company Address Controlled by
Hilux Services LP Suite 1105 111 West George Street, Glasgow, G2 1QX Solberg Business Ltd (British Virgin Islands) and Astrocom AG (Seychelles)
Polux Management LP Suite 1098 111 West George Street, Glasgow, G2 1QX Solberg Business Ltd (British Virgin Islands) and Astrocom AG (Seychelles)
Metastar Invest LLP 175 Darkes Lane, Suite B, 2nd Floor, Potters Bar, Hertfordshire, EN6 1BW Advance Developments Limited (Belize) and Corporate Solutions Limited (Belize)
LCM Alliance LLP Cornwall Buildings 45-51 Newhall Street, Office 330, Birmingham, B3 3QR Astrocom AG (Seychelles) and Exponet GMBH (Seychelles)

 

Starfish Prime, a Response to North Korea?

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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.

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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

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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.

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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.

3 More Russian Locations in U.S. Shuttered

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Putin promises retaliation in growing diplomatic feud with US

Russian President Vladimir Putin plans to retaliate against the State Department’s latest rebuke of his policies, his spokesman warned.

“We regret the unconstructive stance taken by our counterparts in the United States and, of course, we cannot afford to leave unfriendly, and sometimes hostile steps towards us without retaliation,” Kremlin spokesman Dmitry Peskov said Thursday, according to state-run media.

That statement suggests that the diplomatic feud will escalate following the State Department’s decision to close three Russian facilities in the United States. Secretary of State Rex Tillerson’s team justified that move as a response to Putin’s requirement that the United States cut hundreds of personnel operating in Russia. But the State Department called for an end to the tit-for-tat, saying that the two sides had reached “parity” in the fight.

Tillerson ordered the closure of Russia’s consulate general in San Francisco, as well as two other facilities in New York and Washington, D.C., respectively.

“While there will continue to be a disparity in the number of diplomatic and consular annexes, we have chosen to allow the Russian government to maintain some of its annexes in an effort to arrest the downward spiral of our relationship,” State Department spokeswoman Heather Nauert said Thursday.

The State Department said it had implemented the Putin team’s order to remove hundreds of U.S. personnel from Russia. Putin issued that requirement in response to Congress passing legislation that sanctions Russia on three fronts: the cyberattacks against the Democratic party and state election systems in 2016; the invasion of Ukraine; and Russia’s support for Syrian President Bashar Assad.

“The United States hopes that, having moved toward the Russian Federation’s desire for parity, we can avoid further retaliatory actions by both sides and move forward to achieve the stated down of both of our presidents: improved relations between our two countries and increased cooperation on areas of mutual concern,” Nauert said.

Russian diplomats maintain that the United States is to blame for the strained ties between the former Cold War rivals. “By tradition we are for good-natured relations with the United States,” Peskov said. “Moreover, we believe that these relations must be advanced in the interests of peace and global stability and in the interests of settling crucial world and regional problems.”

*** Meanwhile, this Dmitry Peskov cat is well know to the Trump orbit and described below.

Moscow (CNN) Kremlin spokesman Dmitry Peskov confirmed Wednesday he got an email from Michael Cohen, US President Donald Trump’s lawyer, asking for help moving a Moscow real estate deal forward, but said he did not respond and did not pass it to Russian President Vladimir Putin.

Peskov was responding to a question from CNN on a conference call with reporters.
Cohen — who was executive vice president of the Trump Organization at the time he sent the email — said Monday that he had contacted the Kremlin for assistance in mid-January 2016 about building a Trump Tower in Moscow when the mogul was running for president, but denied that the project was related to Trump’s campaign. But the revelation appears to contradict Trump’s vehement denials of any such business connections to Russia in the past.
Cohen told CNN on Monday his message to Peskov was “an email that went unanswered that was solely regarding a real estate deal and nothing more.”
Peskov confirmed that his office had located a copy of the email, which said the development deal wasn’t moving forward and requested support.

 

Goodbye Columbus, History, the Arts and Math

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World history is ugly, but it is real and American history is no different. Learning about it and how it affects life today is a must, yet politics and special interest is interfering to the demise of culture and future generations.

Do you wonder why we still have CommonCore and actually what the Department of Education is doing? So do I. Take a look at the congressional committee title with education legislative responsibilities:

Committee on Education and the Workforce

No wonder there is limited education choice….

When math in public schools is being twisted in teaching methodology for social justice:

Initiative 3: Equity and Social Justice in Mathematics Education The Equity and Social Justice in Mathematics Education Initiative was established to promote, develop and support a just, equitable, and sustainable system of mathematics education that serves each and every child.

Why is this happening? Beyond political correctness and special interests, education systems are making judgments without parental input. Then local government officials take matters into the legislative realm.

A 2014 report by the National Assessment of Educational Progress showed that an abysmal 18 percent of American high school kids were proficient in US history. When colleges such as Stanford decline to require Western Civilization classes or high schools propose changing their curriculum so that history is taught only from 1877 onward (this happened in North Carolina), it’s merely a blip in our news cycle.

A 2012 story in Perspectives on History magazine by University of North Carolina professor Bruce VanSledright found that 88 percent of elementary school teachers considered teaching history a low priority.

Los Angeles votes to rename Columbus Day ‘Indigenous Peoples’ Day’

The Los Angeles city council on Wednesday voted to rename Columbus Day “Indigenous Peoples’ Day.”

Over the years, many Native Americans groups and activists have decried the holiday as celebrating genocide, prompting numerous cities throughout the U.S. to change its name and emphasis. Columbus Day is celebrated nationally on the second Monday of October.

In Los Angeles, Italian-American groups voiced their opposition to changing the holiday, saying it would erase part of their heritage, the Los Angeles Times reported. Christopher Columbus was Italian.

South Dakota, as well as cities like Seattle, Albuquerque, and Denver, have already replaced the holiday with Indigenous Peoples’ Day.

The vote comes as New York has faced pressure to remove statues of Columbus in the wake of Charlottesville and the removal of Civil War statues. A beheaded statue of Columbus was found in Yonkers, N.Y., on Wednesday.

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MEMPHIS, Tenn. — “Gone With the Wind” will be gone from The Orpheum’s summer movie series, the theater’s board said Friday.

The Orpheum Theatre Group decided not to include the 1939 movie about a plantation in the Civil War-era South in its 2018 Summer Movie Series after feedback from patrons following the last screening Aug. 11.

“As an organization whose stated mission is to ‘entertain, educate and enlighten the communities it serves’, the Orpheum cannot show a film that is insensitive to a large segment of its local population,” the theater’s operators said in a statement.

Memphis’ population is about 64 percent African-American.

The historic theater in Downtown Memphis has shown the movie for decades, but this year’s event “generated numerous comments,” leading to the decision.

“While title selections for the series are typically made in the spring of each year, the Orpheum has made this determination early in response to specific inquiries from patrons,” the Orpheum group said.

The theater’s 2018 movie series will be announced in the spring and will contain classic films and more recent blockbusters.