Category Archives: DOJ, DC and inside the Beltway

Hillary Emails: Deeper Fraud/Collusion at Foundation

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There have been calls for an investigative panel to dig much deeper on the Clinton Foundation, but there are many non-government organizations doing that already.

While the FBI is investigating portable devices, metadata and foreign telecom intrusions into Hillary’s server and those at the State Department, the released emails so far tell an additional story that there was a very blurred line between Foundation work, donors and for sure diplomatic agendas.

So, exactly what is this Clinton Foundation about? Well nothing like one would think and the laws broken fall on that pesky IRS division that Lois Lerner (Loretta Lynch, at the DoJ refused to prosecute) where no one seems interested in proceeding on IRS law violations.

Clinton Foundation Faces Revisions–and Possible Reckoning

By Ken Silverstein

The Clinton Foundation has gotten a good deal of unflattering attention as of late, which isn’t surprising given that its best known namesakes are Bill, a former president and Hillary, who hopes to be the nation’s next leader. The foundation portrays itself as do-gooder nonprofit organization but a cursory look reveals questionable and incomplete disclosures of its activities and accounts, as well as misspending of donor money, virtually since its inception.

Those lapses appear set to catch up with the foundation (now formally known as the Bill, Hillary, & Chelsea Clinton Foundation), which has until November 16 to amend more than ten years’ worth of state, federal and foreign filings. According to Charles Ortel, a financial whistleblower, it will be difficult if not impossible for the foundation to amend its financial returns without acknowledging accounting fraud and admitting that it generated substantial private gain for directors, insiders and Clinton cronies, all of which would be against the law under an IRS rule called inurement.

While inurement may sound obscure to the layman, it’s an ancient legal principle and the IRS is very clear that it is verboten. If you are familiar with it, it becomes immediately clear that Bill Clinton – and arguably Hillary and daughter Chelsea as family members and fellow Clinton Foundation trustees – could have big problems come November 16. So, too, could Clinton cronies like Ira Magaziner (see below) and Doug Band, a Clinton administration and former foundation insider who subsequently became a founding partner of a bipartisan business swamp called Teneo Holdings.

The Clinton Foundation’s returns show revenues of $359.3 million between 2001 and 2006 and claim spending of $164.5 million on all program services, which includes its spending to provide relief to victims of the Tsunami in Asia and of Hurricane Katrina. The same pattern of taking in vast sums from donors and spending far less to help victims has continued ever since.

“It’s illegal to set up a foundation whose primary purpose is to create financial gain,” said Ortel – who helped expose massive financial fraud by GE, GM and AIG, thereby helping trigger the 2008 financial collapse. “That’s bright line illegal.” (Ortel wrote an article at Breitbart.com earlier which showed how “associates of Bill and Hillary Clinton may have attempted to monetize their participation in Clinton family philanthropic activities.”)

Ortel, a former managing director of Dillon, Read & Co, said that under New York law tax authorities don’t have to show criminal intent to get convictions against foundation officials, they need only show that the foundation filed materially misleading financial information and kept fundraising nonetheless.

“The essence of what a charity does is take your money and show you how they spend it,” he told me. “The Clinton Foundation takes your money and obscures how they spend it.” (Note that the Clinton Foundation only started disclosing its donors in 2008, following years of pressure.)

Foundation spokesman Craig Minassian did not reply to repeated requests for comment for this story.

Ortel is hardly alone in raising questions about the Clinton Foundation’s accounting practices. Earlier this year, the watchdog group Charity Navigator put the Clinton Foundation on its “watch list” of dubious non-profit groups and politely described its business practices as “atypical.” A New York Post story about the development noted that in 2013 the family’s foundation “took in more than $140 million in grants and pledges…but spent just $9 million on direct aid.”

Charity Navigator is described by the Chronicle of Philanthropy as the country’s “most prominent” nonprofit watchdog and “ranks more than 8,000 charities and is known for its independence,” New York magazine reported at the same time. That story noted that Charity Navigator’s new ranking of the Clinton Foundation placed grouped it together with other “scandal-plagued charities like Al Sharpton’s National Action Network and the Red Cross.”

Detailed information provided to me by Ortel – and which I carefully reviewed and confirmed — shows that since its founding, the Clinton Foundation has received more than $1 billion to purchase HIV/AIDS drugs for poor people in Africa, Asia and elsewhere. The leading donors to the foundation to support this admirable goal include the Bill & Melinda Gates Foundation and UNITAID.

However, a unit set up to receive the money – the Clinton Foundation HIV/AIDS Initiative Inc., which was run by Magaziner, a Clinton administration veteran with close ties to Hillary – appears to have spent far less than it took in. The unit’s accounting was so shoddy that in 2008, the state of Massachusetts revoked its license.

Furthermore, the accounting firm that handled much of the paperwork, BKD, has been implicated in a variety of misconduct. For example, last year the Securities and Exchange Commission sanctioned BKD for “violating auditor independence rules when they prepared the financial statements of brokerage firms that were their audit clients.”

(As reported by the Washington Free Beacon, BKD was replaced as the foundation’s accountant by – no, I’m not making this up – PricewaterhouseCoopers, whose previous clients included Enron. That firm’s CEO, Kenneth Lay, died of a heart attack before he was shipped off to prison after engineering one of the biggest financial frauds in American history, with the help of accounting firms like PricewaterhouseCoopers.)

Ortel has issued two little-read reports that strongly suggest that the New York-headquartered Clinton Foundation has violated federal and state laws that bar charities from enriching board members, officers or donors. “The Clinton Foundation is like a Turkish bazaar,” Ortel told me. “You think you’re going into a carpet shop but you’re really going into the back of a truck.” (Ortel says he is politically closer to the GOP than to the Democrats, but says he mostly hates “crony capitalism” as practiced by both parties.)

Last April, Clinton Foundation acting CEO Maura Pally acknowledged “mistakes” in its tax filings and promised they would be corrected by November 16.

The problem for the foundation, Ortel says, is that filing correct returns is impossible for the Clinton Foundation without admitting to criminal felonies. “The foundation has never filed a legitimate, independently certified and complete audit of their financial statements since it was founded, as is required under state, federal and foreign law,” he said.

In 2001, Bill helped set up the Clinton Foundation within weeks of leaving office – after surrendering his law licenses in January for lying under oath during the Monica Lewinsky investigation. That’s not much of a qualification to help run a foundation since those in charge of charities are legally bound to always make truthful declarations.

Bill clearly was in position to exercise significant influence over the foundation and referred to it publicly as “his” charity on numerous occasions. And even though he was not an officer or director of the main foundation until 2013, he had from the very beginning signed legal agreements on the foundation’s behalf and traveled the globe bragging about its alleged good deeds.

Hillary and daughter Chelsea, whom has accomplished little of note in her life but was made a foundation vice chair, basked in the glory. From a branding standpoint, the foundation has been pure gold for the Clintons.

The Clinton Foundation was initially authorized by the IRS to act as a library and research center about Bill Clinton’s presidency. In apparent violation of IRS rules, the foundation expanded its purposes and began raising billions of dollars for other purposes without asking the IRS for permission to do so.

According to the Clinton Foundation’s website, it started its efforts in the HIV/AIDS arena with the “transformational goal” of helping “save the lives of millions of people living with HIV/AIDS in the developing world by dramatically scaling up antiretroviral treatment.”

The Foundation geared up to make HIV/AIDS drug purchases beginning in 2002, but its activities in this area were not disclosed in its 2002 and 2003 tax filings, presumably because it was not legally allowed to engage in such activities at the time.

The Clinton Foundation’s website says it is committed to transparency, but the organization omits much key information from its website, including audits for 2001 to 2004. Its application to form the Clinton Foundation HIV/AIDS Initiative Inc. and the IRS determination letter for that entity are also omitted.

Since the early-2000s, the Clinton Foundation has taken in at least $1 billion in donations to fight AIDS — from groups like the Bill & Melinda Gates Foundation, the Children’s Investment Fund Foundation and UNITAID, as well as governments including, Australia, Canada, France, Ireland, Sweden and the United Kingdom – Ortel estimates.

The Clinton Foundation’s tax forms are so opaque and convoluted that there’s no way to know the precise figure for sure; Ortel bases this number on his review of statements and filings from foundations and governments that have donated to the Clinton’s charity.

Meanwhile, the Clinton Foundation set up a related non-profit — the Clinton Foundation HIV/AIDS Initiative, Inc. — to take in cash for its anti-AIDS initiatives. It was an Arkansas non-profit corporation based in Massachusetts and Magaziner – a chief healthcare policy advisor under President Clinton – got paid an undisclosed amount of money to run it out of the offices of his private consulting firm–an arrangement that, Ortel says, crossed the line of legality. In addition to the U.S., the Clinton Foundation set up anti-AIDS entities in at least a score of other countries.

Figures provided by UNITAID show it has given grants to the Clinton Foundation totaling $341.5 million for anti-AIDS drug purchases between 2006 and 2009 (see last page at this link), while the Clinton Foundation claims it spent about $215.4 million.

The fact that that UNITAID apparently donated about $126 million more to the Clinton Foundation for ant-AIDS pharmaceuticals than the Clinton Foundation acknowledges spending on them is alarming enough. And based on this analysis by Judicial Watch, that understates the magnitude of the problem dramatically.

In an emailed statement, Andrew Hurst, a spokesman for UNITAID, said that, “UNITAID is satisfied that the disbursements to William J. Clinton Foundation HIV/AIDS Initiative/Clinton Health Access Initiative, Inc. have always been fully reconciled and expenditures made in line with grant agreements. Consistent with standard policy, UNITAID commissions independent assessments, audits and programmatic reviews of its grants. The results of all audits conducted so far have been entirely satisfactory.”

When Massachusetts shut down the HIV/AIDS Initiative unit, the Clinton Foundation simply folded its operations into its own and pretended nothing had happened. All of this was flatly illegal, but the IRS, whose tax-exempt wing was led during most of the relevant period by Lois Lerner, did zero. Obama’s Justice Department investigated Lerner on unrelated charges, but never filed charges.

The general shadiness of the whole Clinton Foundations AIDS initiative may well explain why Sir Elton John turned down without explanation an award for fighting AIDS from Bill Clinton during the recent Clinton Global Initiative annual meeting in New York.

“Using a charity that exploits victims of AIDS for your personal gain and advancement puts you in the lower circles of hell, but New York and the IRS haven’t done anything to stop them,” Ortel said.

 

Those Making Decisions About Destiny

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Spooky and deviant people packaged in philanthropic paper and bows have darker missions that is not conspiracy but fact.

The Clinton Foundation is not especially included in this group but the same model of collusion is applied.

Going back to 2009, the agenda was being crafted for the next four years and had a probability of the next eight to ten years. It is working and chilling.

Note, they even call themselves the ‘Good Club’….really?

They’re called the Good Club – and they want to save the world
Paul Harris in New York reports on the small, elite group of billionaire philanthropists who met recently to discuss solving the planet’s problems
It is the most elite club in the world. Ordinary people need not apply. Indeed there is no way to ask to join. You simply have to be very, very rich and very, very generous. On a global scale.

This is the Good Club, the name given to the tiny global elite of billionaire philanthropists who recently held their first and highly secretive meeting in the heart of New York City.

The names of some of the members are familiar figures: Bill Gates, George Soros, Warren Buffett, Oprah Winfrey, David Rockefeller and Ted Turner. But there are others, too, like business giants Eli and Edythe Broad, who are equally wealthy but less well known. All told, its members are worth $125bn.

The meeting – called by Gates, Buffett and Rockefeller – was held in response to the global economic downturn and the numerous health and environmental crises that are plaguing the globe. It was, in some ways, a summit to save the world.

No wonder that when news of the secret meeting leaked, via the seemingly unusual source of an Irish-American website, it sent shock waves through the worlds of philanthropy, development aid and even diplomacy. “It is really unprecedented. It is the first time a group of donors of this level of wealth has met like that behind closed doors in what is in essence a billionaires’ club,” said Ian Wilhelm, senior writer at the Chronicle of Philanthropy magazine.

The existence of the Good Club has struck many as a two-edged sword. On one hand, they represent a new golden age of philanthropy, harking back to the early 20th century when the likes of Rockefeller, Vanderbilt and Carnegie became famous for their good works. Yet the reach and power of the Good Club are truly new. Its members control vast wealth – and with that wealth comes huge power that could reshape nations according to their will. Few doubt the good intentions of Gates and Winfrey and their kind. They have already improved the lives of millions of poor people across the developing world. But can the richest people on earth actually save the planet?

The President’s House of Rockefeller University is on the Upper East Side of Manhattan. The university’s private campus, full of lush green trees, lies behind guarded entrances and a metal fence. It overlooks the East River, only a few blocks away from the United Nations.
It was here, at 3pm on 5 May, that the Good Club gathered. The university’s chancellor, Sir Paul Nurse, was out of town but, at the request of David Rockefeller, had allowed the club to meet at his plush official residence. The president’s house is frequently used for university events, but rarely can it have played host to such a powerful conclave. “The fact that they pulled this off, meeting in the middle of New York City, is just absolutely amazing,” said Niall O’Dowd, an Irish journalist who broke the story on the website irishcentral.com.

For six hours, the assembled billionaires discussed the crises facing the world. Each was allowed to speak for 15 minutes. The topics focused on education, emergency relief, government reform, the expected depth of the economic crisis and global health issues such as overpopulation and disease. One of the themes was new ways to get ordinary people to donate small amounts to global issues. Sources say Gates was the most impressive speaker, while Turner was the most outspoken. “He tried to dominate, which I think annoyed some of the others,” said one source. Winfrey, meanwhile, was said to have been in a contemplative, listening mood.

That the group should have met at all is indicative of the radical ways in which philanthropy has changed over the past two decades. The main force behind that change is Gates and his decision to donate almost all his fortune to bettering the world. Unlike the great philanthropists of former ages, Gates is young enough and active enough to take a full hands-on role in his philanthropy and craft it after his own ideas. That example has been followed by others, most notably Soros, Turner and Buffett. Indeed, this new form of philanthropy, where retired elite businessmen try to change the world, has even been dubbed “Billanthropy” after Gates. Another description is “philanthro-capitalism”. Much more here.

Examples:

Bill and Melinda Gates Foundation grants money to measure your child’s moods via bracelets. Reported by the Chicago Tribune, schools are the basis of the testing and database modeling, where behavior modification is the sole objective.

Warren Buffett’s Foundation has an initiative controlling water and the food supply in Africa and Central America, all in the cause of enhancing agriculture to which population control and sustainability is achieved. To date, Central America is full of bloody criminals and Africa is a continent rife with terror. Buffett is a large funder of abortions globally.

George Soros, the spookiest of the Good Club, has an umbrella organization titled Open Society Institute that funds just about every dark nefarious operation globally, even the IRS scandal, suppressing free speech.

Ted Turner, the media mogul has a ‘one child’ policy emulating that of China.

It appears all of these members of the ‘Good Club’ continue discussion from a 1974 USAID study. Further as the decades pass with new trends emerging, more aggressive and edited objectives are financed.

The matter of eradicated diseases re-emerging, refugees and global financial strife has wrought other billionaires missions yet to be fully realized or understood but take caution.

 

 

HUD, Housing Urban Development, Fleecing-Scandals

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The truth and facts are in the details but details never seem to matter or to be an agenda stopper.

Is there just one government agency that operates without a scandal or fleecing the taxpayers? Housing and Urban Development is headed by Secretary Julian Castro and former mayor of San Antonio. By the way, his name has been floated as a candidate for Hillary’s running mate to ensure to Latino vote.

Obama himself has kept a close eye on Castro and is helping him build his resume for bigger political ambitions in spite of a history of scandals based in San Antonio.

HUD backs $9.5 million loan on property valued at $3.8 million

COLORADO SPRINGS, Colo. —The Department of Housing and Urban Development provided a $9.4 million loan guarantee to renovate an apartment complex here eight months after the owner convinced the county to value the complex at just $3.8 million, a Watchdog.org investigation found.

The loan for Apollo Village Apartments defaulted and the property was foreclosed on in 2012 with HUD losing as much as $4.5 million on the deal, public trustee records show.

Pete Sepp, president of the National Union of Taxpayers, said these government programs put a substantial amount of taxpayer money at risk and should be eliminated.

“Unfortunately, many government loan programs to individual business people aren’t necessarily dictated by the best interests of taxpayers or the laws of the marketplace,” he said after reviewing information Watchdog.org provided him on the loan. “It’s a classic dilemma we see with the federal subsidies programs.”

Instead of foreclosing, HUD sold the note to a private company for $5 million and the company foreclosed on the property six months later, selling the Apollo complex for $6.2 million – netting a $1.2 million profit the government could have realized to offset part of the loss, foreclosure and HUD records show.

“Apollo Village #101-11128 was insured by HUD through a 223f loan in the amount of $9,401,500.00 on March 23, 2009,” according to an email from Baumann.

The owner, represented by a Denver appraisal firm, filed a property tax appeal on May 27, 2008, and the County Board of Equalization reduced the value of the property from $7.199 million to $3.810 million on July 24, 2008, according to county records and the assessor’s office.

County records showed 36 units were condemned in 2008, and building permits for siding, roof and structural repairs were issued between 2009 and 2014.

HUD rules for market-rate apartments only allow the agency to guarantee 83.3 percent of the project’s value after the repairs are completed, which means HUD estimated the value of the repaired project to be about $11.3 million. Federal HUD officials said they did not have any appraisal information for the project, and the local office was looking to see if any documents were available. Read the report in full here.

There is more of course:

Why Are Over-Income Tenants Living in Public Housing?

A recent report from the Department of Housing and Urban Development’s (HUD’s) Office of Inspector General (OIG) and subsequent news articles have raised questions about the treatment of so-called “over-income” families living in federally assisted public housing. “Over-income” families had, at the time of their initial move-in, income low enough to be eligible to live in public housing (income at or below 80% of local area median income), but their incomes later increased above the eligibility threshold. The Inspector General report found that as many as 25,226 over-income families resided in public housing in 2014 (2.6% of all public housing residents). While the majority of over-income families had incomes that exceeded the initial income eligibility limits by less than $10,000, a small subset of families had incomes that were significantly higher.

As HUD has pointed out in its response to the OIG report, allowing over-income families to remain in public housing is not inconsistent with federal law or regulations. Read the report in total here.

 

Per FBI: Foreign Telecoms Likely Hacked Hillary Emails

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The Justice Department officials also used the words “reckless”, “stunning,” and “unbelievable” in discussing the controversy swirling around Clinton’s use of a private, nongovernment email account.

FBN Exclusive: DOJ Officials Fear Foreign Telecoms Hacked Clinton Emails, Server

FBN: Officials close to the matter at the Department of Justice are concerned the emails Hillary Clinton sent from her personal devices while overseas on business as U.S. Secretary of State were breached by foreign telecoms in the countries she visited—a list which includes China.

“Her emails could have easily been hacked into by telecoms in these countries. They got the emails first, and then routed them back to her home server. They could have hacked into both,” one Justice Department official close to the matter says.

Another Justice Department official adds: “Those telecommunications companies over there often have government workers in there. That telecom in that foreign country could then follow the trail of emails back to her server in the U.S. and break into the server” remotely over the Internet. At various points in this process, there were multiple entry points to hack into Clinton’s server to steal information, as well as eavesdrop, the Justice Department officials say.

This is the first indication that officials at the Justice Department are concerned that foreign telecom workers may have broken into Clinton’s emails and home server. The Federal Bureau of Investigation is currently investigating the national security issues surrounding Clinton’s emails and server.

The Justice Department officials also used the words “reckless”, “stunning,” and “unbelievable” in discussing the controversy swirling around Clinton’s use of a private, nongovernment email account, as well as her use of a personal Blackberry (BBRY), an Apple (AAPL) iPad, and home server while U.S. Secretary of State. The officials did not indicate they have any knowledge of a breach at this point.

As for the effort to designate Clinton’s emails as classified or unclassified, the Justice Department officials agreed that, as one put it: “Every email she sent is classified because she herself is classified, because she is both Secretary of State and a former first lady.”

In addition, there’s a growing belief among cyber security experts at web security places like Venafi and Data Clone Labs that Clinton’s emails were unprotected in the first three months of her tenure in 2009 as the nation’s top diplomat, based on Internet scans of her server Venafi conducted at that time.

“For the first three months of Secretary Clinton’s term in office, from early January to late March, access to her home server was not encrypted or authenticated with a digital certificate,” Kevin Bocek, vice president of security strategy and threat intelligence at Venafi tells FOX Business. “That opens the risk that Clinton’s user name and password were exposed and captured, particularly in places she traveled to at this time, like China or Egypt. And that raises issues of national security,” adding “Attackers could have eavesdropped on communications, particularly in places like China, where the Internet and telecom infrastructure are built to do that.”

Digital certificates are the bedrock of Internet security. They verify the Web authenticity and legitimacy of an email server, and they let the recipient of an email know that an email is from a trusted source. Essentially, digital certificates are electronic passports attached to an email that verifies that a user sending an email is who he or she claims to be.

Because it appears Clinton’s server did not have a digital certificate in the first three months of 2009, “a direct attack on her server was likely at this time, and the odds are fairly high it was successful,” says Ira Victor, director of the digital forensic practice at Data Clone Labs.

In and around January 13, 2009, the day of Clinton’s Senate confirmation hearings, the clintonemail.com domain name was registered. An estimated 62,320 emails were sent and received on Clinton’s private email account during her tenure as U.S. Secretary of State. Later, 31,830 emails were erased from her private server because they were deemed personal.

Although Clinton previously has argued that there was no classified material on her home server in Chappaqua, N.Y., the U.S. Department of State has deemed 403 emails as classified, with three designated “top secret” (the State Dept. itself has been the subject of cyber hacking).

Clinton has maintained her home server did have “numerous safeguards,” but it’s unclear specifically what security measures were installed, and what those layers were. In September, Clinton apologized on ABC News for using a home server to manage her U.S. Department of State electronic correspondence.

Although Clinton and her team have indicated her emails were not hacked, not knowing about a breach is different from being hacked, cyber analysts tell FOX Business. Her campaign staffers did not return calls or emails for comment. “Even the NSA, the CIA, and Fortune 500 companies know they cannot make that claim that they have not been hacked. Everyone can be hacked,” says Bocek.

FOX News recently reported that an intelligence source familiar with the FBI’s probe into Clinton’s server said that the FBI is now focused on whether there were violations of the federal Espionage Act pertaining to “gross negligence” in the safeguarding of national defense information. Sets of emails released show that Clinton and top aides continuously sent information about foreign governments and sensitive conversations with world leaders, among other things, FOX News reported.

Secure communications and devices are routine in the federal government. For example, President Barack Obama received a secure Blackberry from the National Security Agency after he was elected, a former top NSA official tells FOX Business.

“I could not recall that I ever heard that a secure Blackberry was provided to Hillary Clinton.  No one else can either,” the former NSA official says, adding, “There is no way her calls were properly secured if she used her [personal] Blackberry.” Blackberry declined comment.

The former NSA official says the same issue is at play for Clinton’s iPad. “While there have been recent advances in securing iPhones and iPads, these were not available, in my opinion, when she was Secretary of State and there would have to be a record that she sought permission to use them with encryption,” the former NSA official says.

When traveling overseas, U.S. secretaries of states use secure phones that ensure end-to-end encryption, and in some cases, mutual authentication of the parties calling, the former NSA official said. Communications are conducted via secured satellite, digital networks or Internet telephony.

“I think I can say, with some confidence, that once any decent foreign intelligence service discovered she was using her personal phone and iPad, she would be targeted and it would be a high priority operation,” the former NSA official said, adding, “if the calls were unencrypted, it would be no challenge at all while she was overseas — they just have to get to the nearest cell tower.”

The first three months of her tenure as Secretary of State would have been an ideal time for hackers to break in, cyber security experts say.

Specifically, experts point to work done by cyber security experts at Venafi, which has revealed a three-month gap in security for Clinton’s home server after the Palo Alto, Calif. firm’s team had conducted routine, “non-intrusive Internet scanning” in January 2009.

Venafi’s Bocek tells FOX Business that he and his team had picked up Clinton’s domain, clintonemail.com, at that time, and found that her home server had not been issued a digital certificate. That means email traffic to and from her server was unprotected from early January to late March 2009. During that time, Clinton traveled as U.S. Secretary of State to China, Indonesia, South Korea, Japan, Egypt, Palestine, Israel, Belgium, Switzerland, and Turkey.

“It also means anyone accessing her home server, including Clinton and other people, would have unencrypted access, including from devices and via web browsers,” says Bocek. “This means that during the first three months of Secretary Clinton’s term in office, web browser, smartphone, and tablet communications would not have been encrypted.”

Digital certificates are vital to Internet security. All “online banking, shopping, and confidential government communications wouldn’t be possible without the trust established by digital certificates,” says Bocek. “Computers in airplanes, cars, smartphones, all electronic communications, indeed trade around the world depend on the security from digital certificates.”

The Office of Management and Budget has now mandated that all federal web servers must use digital certificates by the end of 2016, Bocek notes.

If cyber hackers broke into Clinton’s server, they also could have easily tricked it into handing over usernames, passwords, or other sensitive information, Bocek noted.

“The concern is that log-on credentials could have been compromised during this time, especially given travel to China and elsewhere,” Bocek says opening the door to more lapses. “As we’ve seen with so many other breaches, to long-term, under-the-radar compromise by adversaries, hacks that Clinton and her team may not be aware of.”

Bocek adds: “Essentially, the cyber hacker would have looked to Clinton’s server like it was Secretary Clinton emailing.”

Digital forensic analyst Victor agrees. “It’s highly likely her emails sent during this time via her devices and on her server were not encrypted. More significantly, her log-on credentials, her user name and passwords, were almost certainly not encrypted,” says Victor, who has testified in cyber security cases as an expert forensic witness. “So that means emails from Clinton’s aides, like Huma Abedin, or anyone who had email accounts on her server, their communications were also likely unencrypted.”

Victor adds: “It’s highly likely all of their user names and passwords were being exposed on a regular basis to potential cyber attackers, with the high risk they were stolen by, for instance, government employees who could get the passwords for everyone Clinton was communicating with.”

Victor explains how Clinton’s emails from her devices could have been hacked, and malware could have been planted on her server. “Say Clinton emailed from her device during her Beijing trip in that 2009 period. Her emails would first get routed through the local, state-controlled Chinese telecom. The Chinese telecom captures those bits of emails that are broken up into electronic packets by the device she uses,” Victor explains.

Any device Clinton emailed from, Victor says, was constantly “polling and authenticating communications” between her device and her server. But all of the back-and-forth communication goes through, say, the Chinese telecom. When the device is polling her server with non-secure communications, it’s giving attackers repeat opportunities to breach.”

He continues: “If the connection was not protected, a state actor at the China telecom transmitting her email back to her server in the U.S. could breach both the device and the server at that point.”

Martin C. Libicki, a senior management scientist and cyber expert at Rand Corp., says that security on Clinton’s devices could have been higher than feared. But he says that, while the Blackberry device does have strong encryption, once Clinton zoomed emails from her Blackberry through the foreign telecom networks during those first three months of her tenure, “it was much easier to hack both the device and the server then.”

Venafi’s team, which included analysts Hari Nair and Gavin Hill, found Clinton and/or her team did eventually purchase digital certificates for the server and the clintonemail.com domain name starting in March 2009.

Victor added: “But the question that needed to be asked then was, once the certificate was installed, did Clinton and her team warn anyone she had emailed during those first three months about the poor security during that time, did they warn them to reset their security passwords on all their devices?”

Clinton Lincoln Bedroom, 2017 Re-Run?

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Buying of the President 2016

Clinton White House sleepover guests still writing checks

Friends who slept in Lincoln Bedroom shift donations from Bill to Hillary

by: Liz Essley Whyte

Oct. 26, 2015: This story has been updated.

Click here for the top 34 donor list.

For a first family, inviting guests to spend a night in the Lincoln Bedroom can pay dividends for decades.

Among donors to Democrat Bill Clinton’s campaigns first revealed as overnight guests of his White House and today still living, more than half are still giving — this time to Hillary Clinton.

The Center for Public Integrity published the first list of donors who nabbed a night in the Clinton White House — and whose stays sparked outrage and investigations — in its 1996 report, “Fat Cat Hotel.”

Of the 66 original “Fat Cats” still living, 34 have donated a total of $1.15 million to Hillary Clinton’s campaign or the super PACs supporting her since January 2013. With more than a year before the general election, the number of supporters and their donations may rise.

Most of the generous former guests contributed $2,700 to Hillary Clinton’s campaign account — the maximum amount allowed under federal law during the primaries. The Clinton campaign did not respond to a request for comment.

At least one of the faithful 2016 givers, who celebrated his 10th wedding anniversary in 1993 with a stay at the White House, is looking forward to a return stay in the chief executive’s mansion, courtesy of the Clintons.

“Last time I stayed in the Queen’s Bedroom, so I need to be upgraded to the Lincoln Bedroom,” said former Florida state Rep. Dick Batchelor, who orchestrated the first Florida fundraiser for Bill Clinton in 1991.

“I have no idea whether that would take place or not, but anybody who says they don’t want to visit the White House and spend the night is probably not telling the truth. If I had an opportunity to go back, I would absolutely go back,” he added. “I need to return the towels.”

The original 80 Fat Cats, including those who are now deceased, are only a portion of those who ultimately crashed at the Clinton White House.

The Clinton administration released records in 1997 showing that 938 guests had stayed at the mansion during the president’s first term, dwarfing the 284 who stayed during the previous administration.

And a Democratic National Committee memo showed that President Bill Clinton personally endorsed the idea of using sleepovers at the White House as a fundraising tactic — “Ready to start overnights right away,” he wrote.

At least another 404 guests stayed the night at the Clinton White House and Camp David after Hillary Clinton began campaigning for U.S. Senate in July 1999.

The invitations for sleepovers in the Lincoln Bedroom two decades ago drew fire during Bill Clinton’s presidency, as the press dug up details and Congress probed the chief executive’s fundraising efforts.

Many of the original Fat Cats were Clinton friends from Arkansas. But only eight of them have given to Hillary Clinton’s campaign. Another 18 Arkansas friends have not, while 10 are no longer living.

But that doesn’t mean Arkansan attitudes toward Hillary Clinton have cooled, said Skip Rutherford, a longtime Clinton strategist and former White House overnight guest.

“The people that I know that were friends of Bill’s are friends of Hillary’s,” said Rutherford, who said he hasn’t contributed to politicians since becoming dean of the University of Arkansas Clinton School of Public Service. His wife, Billie, gave $2,700 to the 2016 Clinton campaign. “Politics is very personal in this state. And the Clintons touched a lot of people over the years. And so there’s a lot of loyal, good friends of the Clintons here.”

There are some turncoats: At least four of the former Clinton guests, on top of turning lukewarm on Hillary Clinton, have contributed to her Republican rivals for the nation’s highest office.

Texas oil magnate Truman Arnold, who served as finance chair for the Democratic Party in 1995 and has contributed to Democrats as recently as last year, gave $25,000 to Right to Rise USA, a super PAC backing former GOP Florida Gov. Jeb Bush. Arnold, who was in charge of Democratic fundraising in his role as finance chair, was caught up in the Lincoln Bedroom scandal as more than just a guest.

He once told journalists that he used a Clinton White House database to make sure donors were rewarded with perks, including Lincoln Bedroom stays. Arnold did not respond to requests for comment.

Little Rock bank executive Curt Bradbury and his wife Charlotte both gave to the campaign of Republican U.S. Sen. Lindsey Graham of South Carolina; in addition, Curt Bradbury gave $25,000 to a super PAC supporting New Jersey Republican Gov. Chris Christie and $100,000 to Right to Rise USA, the pro-Bush super PAC.

Bradbury said staying in the White House was “a little bit like sleeping in a museum.” Though he’s a lifelong conservative, he supported Bill Clinton because he is a “native son” of Arkansas.

“Bill’s politics in Arkansas don’t resemble anything I see in the Democratic Party now,” he said. “He was very pragmatic in Arkansas.”

Arkansas banker Warren Stephens, who has given mostly to Republicans but supported Bill Clinton’s first bid for the presidency, has contributed more than $216,000 to support the presidential bids of several GOP candidates, including Bush, Christie, Graham and Wisconsin Gov. Scott Walker, who has since dropped out of the race.

“The entire Democrat party has shifted pretty hard to the left,” Stephens said. “Our politics are a lot different.”

Several of the Hollywood honchos who once stayed at the Clinton White House have donated to Hillary Clinton, but others have yet to commit.

Director Steven Spielberg gave $1 million to a super PAC supporting the former secretary of state, as well as $2,700 to her campaign. And actor Tom Hanks, singer Barbra Streisand, producer David Geffen and actress Mary Steenburgen also supported the former first lady’s 2016 run.

“I don’t think there’s a human being in this world more qualified because of all of her experiences,” Steenburgen, an Arkansas native, told the Arkansas Times earlier this year. She has given $2,700 to the campaign fund. “I will be campaigning mightily.”

But comedian Chevy Chase, actor Richard Dreyfuss and producer Mike Medavoy have not given.

Dreyfuss called his kids from the Lincoln Bedroom and was awoken by Bill Clinton at 7:20 a.m. so they could talk politics, the Center for Public Integrity previously reported.

Even Linda Bloodworth-Thomason, a documentary filmmaker who stayed in the Lincoln Bedroom for the first night of Bill Clinton’s presidency and ended up sleeping there a total of 101 nights, has yet to donate to Hillary Clinton’s presidential bid.

Producer Medavoy, who supported Obama during the 2008 presidential primaries, said he plans to give soon.

“I will contribute at the time of my choosing,” he said. “When is none of your business.”

Medavoy said he supports Clinton this year because he doesn’t expect another viable candidate to emerge, not because he wants a return visit to the White House.

“I thought the president and Mrs. Clinton were gracious, nice. I thought the family was nice. I was very lucky, and I know it, to have been invited,” he said. “And I hope that it wasn’t just because I supported them and early, but because we basically agreed about what needed to be done in the world.”

Medavoy’s ex-wife Patricia Duff also stayed at the White House; she has given a total of $7,700 to Hillary Clinton’s campaign account and Ready PAC, formerly known as Ready for Hillary, which supports Clinton. One of Duff’s claims to fame is that she called Bill Clinton “one full-service president” after her stay in the executive mansion, reportedly angering the president.

(Update, Oct. 26, 2015, 5:51 p.m.: Duff did not respond to an initial request for comment, but contacted the Center for Public Integrity after the report was posted. She said via an emailed statement that the earlier accounts of her remarks perpetuated “an offensive myth that has been running for too long and completely fumbles the facts.” She added that her comment was taken “completely out of context.”

Duff said that she was at the White House with then-husband Medavoy and that the president knew that Medavoy had to get up early the next morning.

“We were both totally charmed when the President knocked on our door and brought Mike a cup of coffee as his wake up call. My sincere surprise at this homespun hospitality occasioned my completely sincere and innocent remark,” she wrote in her email. “We were delighted — and said so. I have never heard from anyone that the President was angry with me. Then, as now, I maintain a cordial relationship with both Secretary Clinton and the President.”)

Some of the former guests who have not yet donated to the Clinton 2016 effort may be waiting for the Democratic Party to choose a nominee. Others said they plan to give soon.

“Well of course I support Hillary because I’m crazy about her,” said Diane Carroll, whose husband Phillip Carroll once worked with the candidate at the Rose Law Firm in Little Rock. “I just haven’t really gotten around to it, to tell you the truth.”

This story was co-published with Slate.