Justice Dept. Refuses to Comply With Court Order

Posted on February 4, 2016February 4, 2016 by Denise Simon

The excuses are stupid…

Justice Dept. Fights Subpoenas for Bank Records About Russian Assets

Visitors look through books before Russian President Vladimir Putin’s visit to the library of the Schneerson family of Hasidic rabbis in the Jewish Museum in Moscow, Thursday, June 13, 2013. The vast collection of Jewish books and documents is the focus of a dispute between Moscow and Washington.

Photo: Alexander Zemlianichenko/AP

Updated at 1:10 p.m.

The U.S. Department of Justice is fighting efforts by a Jewish group to subpoena banks for information about assets owned by the Russian Federation, which owes more than $43 million in sanctions for rebuffing a U.S. judge’s order to return a collection of religious texts.

In papers filed on Wednesday night, the Justice Department warned that allowing lawyers for Agudas Chasidei Chabad of the United States to subpoena information about Russian assets from five financial institutions—JPMorgan Chase, Citigroup, Goldman Sachs, Deutsche Bank and Computershare—could harm U.S. foreign policy interests. The subpoenas seek information about accounts that belong to the Russian government and to individuals, including President Vladimir Putin.

“Such efforts are antithetical to the goal of securing the return of the collection to Chabad, open the doors to reciprocal measures being taken against the United States by Russia, and would be out of step with international practice such that they could cause considerable friction with other foreign governments,” the Justice Department wrote.

The U.S. government supports Chabad’s claim to the Schneerson Collection—more than 12,000 books and manuscripts seized in Russia in the early 20th century, and 25,000 pages of texts stolen by the Nazis and then taken as war loot by the Soviet Red Army. Chabad has fought in court for the return of the collection for more than a decade. The Russian government stopped participating in the litigation in 2009.

The Justice Department has opposed efforts by Chabad’s lawyers to pursue Russian assets to force compliance with a 2010 court ruling that ordered Russia to return the collection to Chabad.

Steven Lieberman, a partner at Rothwell, Figg, Ernst & Manbeck and a lead attorney for Chabad, said in a joint statement with lawyers from Lewin & Lewin in Washington that the Justice Department was “simply trying to re-litigate an issue it has already lost.”

“We are reviewing the government’s position, and we will consider asking [the judge] to take appropriate steps to ensure that our efforts to identify Russian assets will proceed without further interference,” Lieberman said. “However, it is shocking that the Departments of Justice and State now appear to be representing Russian interests more aggressively than their private counsel ever did.”

In 2013, U.S. District Judge Royce Lamberth in Washington—over the Justice Department’s objections—entered a civil contempt order against Russia that included a fine of $50,000 per day. In September 2015, Lamberth entered a judgment for Chabad for $43.7 million, the sanctions total at the time.

With the judgment on record, Chabad’s lawyers ramped up their search for Russian assets in the United States. They subpoenaed the five financial institutions in December.

The Justice Department argues that even with Lamberth’s sanctions order in place, the court wouldn’t be allowed under federal law to actually enforce it. And if the court can’t enforce its order, the government said, Chabad shouldn’t be allowed to subpoena information or otherwise use the court system to investigate Russian assets that it can’t attach.

“The sanctions judgment at issue here … while resulting from Russia’s noncompliance with a default judgment ordering it to return certain property to Chabad, does not in and of itself grant any property rights to Chabad. Instead, it simply sanctions Russia for its noncompliance with the court’s specific performance order,” the Justice Department wrote.

In a Feb. 2 letter included in the government’s court papers from Katherine McManus, deputy legal adviser at the U.S. Department of State, to Justice Department Civil Division Principal Assistant Attorney General Benjamin Mizer, McManus wrote that the Chabad case had already created diplomatic problems.

“For several years, senior Russian officials have regularly raised this litigation with their U.S. counterparts. They have done so more frequently, and at higher levels, since the issuance of the district court’s sanctions order,” McManus wrote. The sanctions order and efforts to enforce it would only hurt efforts to negotiate the return of the Schneerson Collection, she added.

More broadly, the Justice Department said in its court papers that if Chabad were allowed to conduct “sweeping discovery” into Russian assets, it would create “friction” with other foreign governments and risk similar orders being entered against the United States abroad. The U.S. last year was granted immunity from contempt sanctions in a Spanish court, the Justice Department noted.

“Any constraint placed on property of the Russian entities named in the subpoenas in the context of this case would isolate the United States in the international community and raise doubts about the United States’ respect for other foreign sovereigns,” the government argued.

Updated with comment from Chabad’s lawyers.

Price of Gas at the Pump too Low, Barack’s Proposal

Posted on February 4, 2016February 4, 2016 by Denise Simon

Obama to call for $10-per-barrel oil tax to fund clean transport

FNC: President Obama will propose a $10 fee for every barrel of oil to be paid by oil companies in order to fund clean energy transport system, the White House announced Thursday — although Republicans were quick to declare the plan “dead on arrival” in Congress.

The fee would be phased in over five years and would provide $20 billion per year for traffic reduction, investment in transit systems and other modes of transport such as high-speed rail, the White House said. It would also offer $10 billion to encourage investment in clean transport at the regional level.

Obama is expected to formalize the proposal Tuesday when he releases his final budget request to Congress. However, the proposal immediately faced resistance from Republicans.

“Once again, the president expects hardworking consumers to pay for his out of touch climate agenda,” House Speaker Paul Ryan said in a statement, arguing it would lead to higher energy prices and hurt poor Americans.

Ryan went on to describe Obama’s plan as “dead on arrival” in Congress.

“The good news is this plan is little more than an election-year distraction. As this lame-duck president knows, it’s dead on arrival in Congress, because House Republicans are committed to affordable American energy and a strong U.S. economy,” Ryan said.

The White House claims the added cost of gasoline would incentivize the private sector to reduce the reliance on oil and to increase investment in clean energy technology.

The plan also saw opposition from advocates for the oil industry, who warned it would only harm consumers.

“The White House thinks Americans are not paying enough for gasoline, so they have proposed a new tax that could raise the cost of gasoline by 25 cents a gallon, harm consumers that are enjoying low energy prices, destroy American jobs and reverse America’s emergence as a global energy leader,” API President and CEO Jack Gerard:

“On his way out of office, President Obama has now proposed making the United States less competitive.” Gerard said.

*****

In part from Bloomberg: With the proceeds targeted to transportation and climate initiatives, the proposal announced Thursday deepens Obama’s environmental credentials and signifies his ambitions to aggressively push action on climate change during his final year in office.

“By placing a fee on oil, the president’s plan creates a clear incentive for private-sector innovation to reduce our reliance on oil and at the same time invests in clean energy technologies that will power our future,” the White House said in a statement.

It is unclear who, exactly would pay the tax if it were to pass, and how it would be structured. White House officials repeatedly stressed that the fee would fall on oil companies, but said it wouldn’t be charged at the wellhead and they look forward to working with Congress on the details.

The fee, which drew swift objections from oil industry groups and Republicans, is part of a broader administration plan to shift the nation away from transportation systems reliant on internal combustion engines and fossil fuels. The proposal envisions investing $20 billion to reduce traffic and improve commuting, $10 billion for state and local transportation and climate programs and $2 billion for research on clean vehicles and aircraft.

Environmentalists applauded the move. “President Obama’s vision underscores the inevitable transition away from oil, and investments like this speed us along the way to a 100% clean energy future,” Sierra Club Executive Director Michael Brune said in an e-mail.

Inadequate infrastructure raises costs for businesses and consumers, including motorists stuck in traffic — a “hidden tax” and a harm to the environment, said Transportation Secretary Anthony Foxx. More here.

Finally, Hillary’s Security Clearance in Jeopardy?

Posted on February 4, 2016February 4, 2016 by Denise Simon

Humm –> Expect to undergo one or more interviews and often a polygraph as part of the clearance process. These steps are used by investigators to get a better understanding of your character, conduct and integrity. You might also have to answer questions designed to clear up discrepancies or clarify unfavorable data discovered during the background investigation. The ultimate goal is for government security personnel to determine your eligibility for a clearance, a decision based on the totality of the evidence and information collected.

August of last year: Intelligence community wants Clinton’s security clearance suspended

WashingtonTimes: Security experts say that if Hillary Rodham Clinton retained her government security clearance when she left the State Department, as is normal practice, it should be suspended now that it is known her unprotected private email server contained top secret material.

“Standard procedure is that when there is evidence of a security breach, the clearance of the individual is suspended in many, but not all, cases,” said retired Army Lt. Gen. William Boykin, who was deputy undersecretary of defense for intelligence in the George W. Bush administration. “This rises to the level of requiring a suspension.”

“The department does not comment on individuals’ security clearance status,” the official said.

Mrs. Clinton is the front-runner for the Democratic presidential nomination. A campaign spokesman did not reply to a query, but she did get a vote of support from a key congressional Democrat.

Sen. Dianne Feinstein, the top Democrat on the Senate intelligence committee, said Thursday there is no evidence Mrs. Clinton herself sent classified information and that the emails now under scrutiny were not marked classified at the time she sent them.

Clinton’s Security Clearance Is Under Scrutiny

Bloomberg: Now that several e-mails on Hillary Clinton’s private server have been classified, there is a more immediate question than the outcome of the investigation: Should the former secretary of state retain her security clearance during the inquiry? Congressional Republicans and Democrats offer predictably different answers.

The State Department announced Friday that it would not release 22 e-mails from Clinton’s private server after a review found they contained information designated as top secret. U.S. officials who reviewed the e-mails tell us they contain the names of U.S. intelligence officers overseas, but not the identities of undercover spies; summaries of sensitive meetings with foreign officials; and information on classified programs like drone strikes and intelligence-collection efforts in North Korea.

The FBI is investigating the use of Clinton’s home server when she was secretary of state, which the bureau now has. The New York Times reported in August that Clinton is not a target of that investigation. We reported in September that one goal is to discover whether a foreign intelligence service hacked in.

Representative Adam Schiff, the ranking Democrat on the House Intelligence Committee, said Clinton should not lose her security clearance for receiving information that was not marked classified at the time. “I’m sure she does hold a clearance, and she should,” he told us.

Representative Mike Pompeo, a Republican member of that committee who also has read the e-mails, told us, “It’s important, given all the information we now know, that the House of Representatives work alongside the executive branch to determine whether it’s appropriate for Secretary Clinton to continue to hold her security clearances.”

Senate Intelligence Chairman Richard Burr told us the decision lies with the White House. “I think that’s up to what the National Security Council is comfortable with,” he said.

Burr, who has also read all 22 e-mails, said Clinton should have known to better protect the information they contain. “They are definitely sensitive,” he said. “Anybody in the intelligence world would know that the content was sensitive.”

His Democratic counterpart, Senator Dianne Feinstein, who also read them, told us that Clinton didn’t originally send any of the e-mails and that they were largely from her staff, although she did sometimes reply. Feinstein said the intelligence community is being overly cautious by designating the e-mails as top secret.

“There’s no question that they are over-classifying this stuff,” she said.

Clinton’s discussion of classified programs on an unclassified e-mail system is hardly rare. The issue, called “spillage,” has plagued the government for years. It can apply to anything from a spoken conversation about intelligence programs outside of a secure facility, to printing out a document with classified information on an unsecure printer.

Still, it is forbidden. The State Department’s Foreign Affairs Manual says “transmitting classified information over a communication channel that is unauthorized for the level of information being transmitted” is a “security violation.” Such violations must be investigated by the State Department’s own bureaus of human resources and diplomatic security. Punishment can vary from a letter of reprimand to loss of security clearance, according to the manual.

When asked about the status of Clinton’s security clearance, State Department spokesman John Kirby said: “The State Department does not comment on individuals’ security clearance status. We will say, however, that generally speaking there is a long tradition of secretaries of state making themselves available to future secretaries and presidents. Secretaries are typically allowed to maintain their security clearance and access to their own records for use in writing their memoirs and the like.”

The Clinton campaign declined to comment.

During the Obama administration, it has not been automatic for officials to lose their security clearance while an investigation is underway. Just last week, the Washington Post reported that the chief of naval intelligence, Vice Adm. Ted Branch, had his security clearance suspended because he is wrapped up in a Justice Department investigation into contracting corruption. He has not been able to read, see, or hear classified information since November 2013. Branch has not been charged with any crime and continues to serve in that post.

But when then-CIA director David Petraeus came under FBI investigation at the end of 2012, his security clearance was not formally revoked. After he resigned, his access to classified information was suspended, according to U.S. officials. In that case, Petraeus had provided notebooks with highly classified information to his biographer and mistress Paula Broadwell, whose security clearances did not permit her to receive it.

Unlike Broadwell, officials familiar with the e-mails tell us that Clinton and her e-mail correspondents were cleared to receive the information that has been classified after the fact. Steven Aftergood, who heads the project on government secrecy for the Federation of American Scientists, told us, “It’s entirely possible for information to start out as unclassified and to be classified only when the question of public disclosure arises.”

William Leonard, who oversaw the government’s security classification process between 2002 and 2008 as the director of the Information Security Oversight Office, told us this kind of “spillage” was common. “The bottom line is this, if you have the opportunity to pore through any cleared individual’s unclassified e-mail account, it’s almost inevitable you would find material that someone, some way would point out should be classified.” He also said that in Clinton’s case, “there is no indication that she deliberately disregarded the rules for handling classified information so I see no reason why she should not remain eligible for a security clearance.”

Nonetheless, Leonard added that Clinton’s decision to use the private e-mail server as secretary of state “reflected exceedingly poor judgment, and those that advised her on this did not serve her well.”

The FBI investigation may determine that neither Clinton nor her aides broke the law, but Clinton herself has said she used poor judgment. It’s an open question how that poor judgment will affect her access to state secrets, during and after the FBI’s investigation.

Epic Chinese Hacking is Forecasted

Posted on February 4, 2016February 4, 2016 by Denise Simon

In 2015: Washington (CNN) A highly trained group of Chinese hackers is targeting defense, commercial and political organizations worldwide, pulling off sophisticated heists of sensitive information, according to new research out Wednesday.

Though Chinese cyberespionage has been well-documented, researchers from Dell SecureWorks Counter Threat Unit — a division of Dell tech company — say this group, nicknamed Emissary Panda by another research firm, has pulled off cyberattacks at a level of sophistication and specialization rarely seen before among Chinese hackers. More here.

Security Firm Warns of
New Chinese Cyber Attacks

CrowdStrike: Russia, North Korea also engaged in cyber theft

FreeBeacon: China’s cyber attacks against U.S. government and private sector databases are part of a major intelligence-gathering operation and are likely to continue, according to a new report by a cyber security firm.

Chinese hackers stole health care data pertaining to some 80 million Americans last year, and the Office of Personnel Management cyber attacks netted sensitive records on 22 million federal workers, according to an annual threat report made public Wednesday by CrowdStrike, a cyber security and intelligence company. The company is widely consulted by both government and private sector organizations.

The gathering of personal data by the Chinese represents a new trend in Beijing’s aggressive cyber attacks.

“This targeting underscores that intrusion operations associated with nation-states pose a significant risk to all data, no matter how uninteresting it may seem,” the report said.

The 49-page “2015 Global Threat Report” also states that the U.S.-China agreement not to conduct commercial cyber theft has had little impact on Beijing’s cyber operations.

“Beneath the surface, however, China has not appeared to change its intentions where cyber is concerned,” the report said.

Any reduction in Chinese cyber attacks this year likely will be temporary, and an apparent reduction may result from the use of more clandestine methods for conducting attacks following a major military reorganization.

The military changes “will likely increase [China’s] reliance on its civilian intelligence agencies and associated contractors, all of which generally employ better tradecraft,” the report said.

“If observed campaigns in late 2015 were any indication, it is unlikely China will completely cease its cyber operations, and 2016 will show the new direction it is headed,” the report said.

More cyber attacks seeking personal data could take place in the future, and organizations that hold such data “should remain alert to the possibility of similar activity going into 2016,” the report said.

China’s cyber spies usually use cyber intrusions to steal strategic information, such as intellectual property, business operations data, and sensitive government documents.

Stolen personal data, on the other hand, “is typically used to facilitate identity theft or other types of financially motivated crimes,” the report said.

However, the compromised personal information from health insurance companies Anthem, Premera, and CareFirst last year could be used by the government or state-run companies.

The large data theft also appears to be part of Chinese efforts to “build out profiles on individuals to support future operations.”

The federal government data breaches were more damaging and included sensitive background investigation information on federal employees, the report said.

“Without doubt, access to this degree of [personally identifiable information] for both successful and unsuccessful applicants represents a treasure trove of information that may be exploited for counterintelligence purposes,” the report said.

The Chinese can now exploit millions of stolen records for intelligence operations.

“Knowledge acquired during these operations could be used to create more individualized, and therefore more effective, spear phishing campaigns, or also in more traditional, real-world espionage activity,” the report said, noting that the background investigation data “would be particularly useful to traditional [human intelligence] operations as it contains details of a very personal nature about current and former government employees, as well as private sector employees working on government contracts.”

The Chinese government, through the Ministry of Public Security, has launched a major domestic campaign to crack down on online dissent. The Ministry is conducting cyber operations against people and websites that post information opposed by communist authorities, including use of an offensive cyber security force called the “Great Cannon,” a supplement to the Great Firewall designed to block online users from accessing unapproved content.

In Russia, hackers linked to the government used malicious software for intelligence-gathering and for political coercion, such as against Ukraine. Moscow hackers also have conducted cyber reconnaissance—preparation of the cyber battlefield—in Europe and elsewhere.

“In February, widespread spear phishing … was detected and analyzed,” the report said. “These attacks targeted numerous entities in government, defense, and non-governmental organizations (NGOs) in the U.S., Europe, Asia, and South America.”

Russian hackers used stolen emails from a hack against the U.S. strategic consulting firm Stratfor, the report said, a tactic not typical of Russian hacking in the past.

International pressure on Moscow over its military activities, such as the annexation of Ukraine’s Crimea “portend increased intelligence collection by Russia-based adversaries particularly against regional targets and global energy companies,” the report said.

A Russian cyber intelligence operation, dubbed Berserk Bear, targeted oil and gas companies in the Middle East. Another operation, called Fancy Bear, targeted Chinese defense firms.

One Russian hacker group called CyberBerkut operating in Ukraine appears linked to Russian intelligence services.

North Korean cyber activities last year principally involved intelligence-gathering operations directed against South Korea.

Pressure from China could prompt Pyongyang to take a more aggressive cyber posture. And North Korean cyber activities also could expand into criminal activities to raise money for the regime, the report said.

Iran is expected to step up cyber attacks against Saudi Arabia. Regional tensions “increase the likelihood that Iran would use its proven cyber capabilities in 2016, targeting Saudi Arabia and regional governments that are becoming involved in the two countries’ dispute by choosing to align with Saudi Arabia.”

The report names more than 70 cyber adversaries and divides them into three types of attackers: Target intruders, such as nation states, cyber criminals, and “hacktivists.”

For cyber crime, attacks on banks and the use of ransom schemes increased during 2015.

“Phishing emails continued to dominate crimeware distribution throughout the year as the primary mechanism used for the aforementioned banking Trojans and ransomware threats,” the report said.

So-called hacktivist activities including politically motivated cyber attacks by groups like the Syrian Electronic Army and pro-ISIS hackers.

Several pro-Iranian hacker groups also were active last year, including Parastoo, Remember EMAD, and SOBH Cyber Jihad.

The group Remember EMAD—named after the Hezbollah terrorist Imad Mughniyah who was killed in a Damascus car bomb in 2009—claimed to have penetrated Pentagon networks and then threatened to release stolen data. No data was ever released.

ISIS hacking was very active last year and included campaigns of web defacement, the release of personal data—known as “doxing”—and the hijacking of social media accounts.

About that Mosque that Barack Visited Today

Posted on February 3, 2016February 3, 2016 by Denise Simon

A deep investigation was performed on the Muslim Brotherhood and organizations in the United States under that umbrella. The full summary is here.

Mosque Obama Visiting Graduated Terrorist Who Targeted Federal Building

The Al-Rahmah School at Islamic Society of Baltimore as seen in 2007. The mosque is hosting President Obama on Wednesday. (AP) According to CIA Director John Brennan ‘jihad’ means struggle…..

InvestorsDaily: Islamophilia: President Obama is conferring legitimacy on a Baltimore mosque the FBI just a few years ago was monitoring as a breeding ground for terrorists, after arresting a member for plotting to blow up a federal building.

IBD has learned that the FBI had been conducting surveillance at the Islamic Society of Baltimore since at least 2010 when it collared one of its members for plotting to bomb an Army recruiting center not far from the mosque in Catonsville, Md.

Agents secretly recorded a number of conversations with a 25-year-old Muslim convert — Antonio Martinez, aka Muhammad Hussain — and other Muslims who worshipped there. According to the criminal complaint, Martinez said he knew “brothers” who could supply him weapons and propane tanks.

“He indicated that if the military continued to kill their Muslim brothers and sisters, they would need to expand their operation by killing U.S. Army personnel where they live,” FBI special agent Keith Bender wrote. Martinez said that in studying the Quran he learned that Islam counsels Muslims to “fight those who fight against you.”

Sentenced to 25 years in prison in 2012, Martinez also stated in a social media posting that he wanted to join the ranks of the “mujahideen” in “Pakistan or Afghanistan (a country that struggle[sic] for the sake of allah).” Most of ISB’s board members are from Pakistan.

To help disrupt the plot, the FBI reportedly put an undercover agent in the mosque, which upset the leadership there. After protests, the FBI sent an official to ISB to take questions and mollify concerns the bureau was spying on Muslims.

Members of the mosque complained that the FBI tried to “entrap” Martinez and other Muslim terrorism suspects by sending “spies with Muslim names” into the mosque.

“If I was the president of the mosque, I would not let you come here without strip(-searching) you,” one member angrily told the FBI official, “because you might drop something (like a bug) to hear what’s going on here.” “The Muslim Link” newspaper described the questioner as Pakistani.

This is the mosque that will be honored with a visit from Obama on Wednesday, the first U.S. mosque visit of his presidency.

It’s now abundantly clear the White House failed to properly vet the venue. Reportedly, it let the Council on American-Islamic Relations choose the site, even though the FBI has banned CAIR from outreach because of known ties to the Hamas terrorist group.

“For a number of years we’ve been encouraging the president to go to an American mosque,” CAIR spokesman Ibrahim Hooper said. “With the tremendous rise in anti-Muslim sentiment in our country, we believe that it will send a message of inclusion and mutual respect.”

As we reported Tuesday, ISB is affiliated with the Islamic Society of North America — which federal prosecutors in 2007 named a radical Muslim Brotherhood and Hamas front and an unindicted terrorist co-conspirator in a scheme to funnel more than $12 million to Hamas suicide bombers — and ISB has helped organize the terror-tied ISNA’s conferences.

The Shariah-compliant mosque was led for 15 years by a radical cleric — Imam Mohamad Adam el-Sheikh — who once represented a federally designated al-Qaida front group. El-Sheikh also has argued for the legitimacy of suicide bombings, according to the Washington Post.

We also first reported that ISB board member and vice president Muhammad Jameel has blamed American foreign policy — namely, U.S. support for Israel — for terrorism and the rise of Osama bin Laden.

“I hope (his death) does not camouflage the bigger picture, which is to look at what gave rise to OBL and what are the root causes of terror,” Jameel said in a local 2011 interview. “Just eliminating him does not resolve the longer-term problems, which I consider to be (U.S.) foreign policy.”

ISB board members are required to have “an in-depth understanding of the Shariah,” and “must take Islam as the way of life,” according to recently amended articles of incorporation papers filed with the state of Maryland.

We have also learned that ISB invited one of the imams of the Boston Marathon bombers’ mosque to headline a 2013 fundraiser for its Islamic school.

Then-Islamic Society of Boston imam Suhaib Webb spoke at the 25th anniversary banquet of ISB’s Al-Rahmah School — even though two days before 9/11, according to an FBI surveillance report, Webb was raising cash for a Muslim cop-killer together with al-Qaida cleric Anwar Awlaki, the hijackers’ spiritual leader.

So let’s recap. The mosque that is hosting the commander in chief, while receiving his historic benediction graduated a terrorist who plotted to blow up a local Army recruiting station, hired an imam who condoned suicide bombings and blames American “foreign policy” for terrorism.

Obama has to be willfully blind not to see all these ties to terror.

The excuses are stupid…

Justice Dept. Fights Subpoenas for Bank Records About Russian Assets

Security Firm Warns of New Chinese Cyber Attacks

Security Firm Warns of
New Chinese Cyber Attacks