The Russian FSB (KGB) Working Covert Jihad for Years

Russia’s Playing a Double Game With Islamic Terror

TheDailyBeast: Even as America touts its counterterrorism partnerships with Russia, evidence points to the FSB directly feeding Dagestanis to ISIS.
It is an article of faith among the many critics of the current Russian government that, however unpleasant Vladimir Putin may be, he is still a necessary partner in one crucial field of U.S. foreign policy: cooperation in the war on Islamic terrorism.Proof, if it were needed, for how valued this cooperation is among U.S. policymakers came in the conspicuous absence of Alexander Bortnikov, the director of the Federal Security Service (FSB), Russia’s domestic intelligence agency, from sanctions levied by the Treasury Department against Russian officials. The sanctions targeted bureaucrats involved in both the invasion and occupation of Crimea and the unacknowledged maskirovka war that Moscow is still waging in eastern Ukraine—a war that has drawn amply on the resources of the FSB and has included several “former” FSB officers on the battlefield. Not only was Bortnikov not sanctioned, he was invited by the White House last February as a guest to President Obama’s three-day conference on “countering violent extremism,” whereas the current FBI director, James Comey, was not.That conference was held principally because of the international threat posed by ISIS and the coalition war against it in Syria and Iraq, not to mention the Chechen identity of the Tsarnaev brothers, perpetrators of the 2013 Boston marathon bombings. Bortnikov’s presence was a mutual recognition by the U.S. and Russia that fighting jihadism is a shared challenge between two countries now embroiled in a pitched stand-off over the fate of Europe and much else.

Chechen leader Ramzan Kadyrov smiles during a government organised event marking Chechen language day in central Grozny April 25, 2013.
Maxim Shemetov/Reuters

Yet a recent investigation conducted by Novaya Gazeta, one of the few independent newspapers left in Russia, complicates this cozy tale of counterterrorist cooperation. Based on extensive fieldwork in one village in the North Caucasus, reporter Elena Milashina has concluded that the “Russian special services have controlled” the flow of jihadists into Syria, where they have lately joined up not only with ISIS but other radical Islamist factions. In other words, Russian officials are added to the ranks of terrorists which the Russian government has deemed a collective threat to the security and longevity of its dictatorial ally on the Mediterranean, Bashar al-Assad.

It may sound paradoxical—helping the enemy of your friend—but the logic is actually straightforward: Better the terrorists go abroad and fight in Syria than blow things up in Russia. Penetrating and coopting terrorism also has a long, well-attested history in the annals of Chekist tradecraft.

Milashina makes her case study the village of Novosasitili in Dagestan’s Khasavyurt district. Since 2011, nearly one percent of the total population of Novosasitili has gone to Syria—22 out of 2,500 residents. Of that figure, five were killed and five have returned home. But they didn’t leave Russia, a country notoriously difficult to enter and exit, without outside help. The FSB established a “green corridor” to allow them to migrate first to Turkey, and then into Syria. (Russians, including those living in the North Caucasus, can catch any of the daily non-stop flights to Istanbul and visit Turkey without a visa.)

“I know someone who has been at war for 15 years,” Akhyad Abdullaev, head of the village, tells Milashina. “He fought in Chechnya, Afghanistan, Iraq, and now in Syria. He surely cannot live peacefully. If such people go off to war, it’s no loss. In our village there is a person, a negotiator. He, together with the FSB, brought several leaders out of the underground and sent them off abroad on jihad. The underground resistance has been weakened, we’re well off. They want to fight—let them fight, just not here.”

Milashina next interviews the “negotiator” Abdullaev mentions. He tells her of his role as an intermediary between the FSB and local militants in arranging the latter’s departure to the Levant. In 2012, for instance, he helped arrange for a man known as the “Emir of the northern sector”—a “very dangerous man,” believed by the FSB to have been behind several terrorist bombings—to go to Turkey if he agreed to quit jihadism in Dagestan. The FSB gave the Emir a passport and acted as his travel agent. The condition was that he’d deal exclusively with the FSB and not inform any of his confederates of his true sponsor. The Emir has since been killed in Syria, but the “negotiator” tells the journalist that he’s subsequently brought another five militants to the FSB who benefited from the same quid pro quo arrangement. “This was in 2012,” he says. “Just before the Syrian path opened up. More precisely, [the FSB] opened it.”

So far the tactic of encouraging hijrah, or jihadist emigration, has appeared to help the Russian government pacify its decades-long insurgency in the North Caucasus. Akhmet Yarlya, a researcher at Moscow State Institute of International Relations’s Center of the Problems of the Caucasus and Regional Security, a group attached to Russia’s Foreign Ministry, has estimated that between two and three thousand Islamic militants have joined ISIS in the Middle East. By all accounts, the result has been great for counterterrorism officials, who are now able to claim direct credit for seeing terrorist violence in the region halve since the Syria crisis kicked off.

Tanya Lokshina, the Russia program director and a senior researcher at Human Rights Watch, told The Daily Beast that while she can neither confirm nor deny the allegations put forward in Novaya Gazeta, “It is also evident that [Russian] law enforcement and security agencies are proud of the fact that the number of casualties in armed clashes between insurgent forces and security has declined very significantly by some 50 percent. Officials attribute it to the success of the government in fighting the insurgency; in reality, it seems the drop derives from the fact that all the aggressive, competent fighters are no longer fighting in Dagestan but are in Syria as part of ISIS.”

Mike Rogers, a former U.S. representative and the chair of the House Permanent Select Committee on Intelligence, told The Daily Beast that the FSB might be turning a “blind eye” to jihadist outflow to Syria. “The only reason I say that is that they could alert Assad’s folks to get them once they’re in Syria,” Rogers said. “But for me, the idea of getting them out of town doesn’t make sense because they know they get combat training and come back home.”

However, a former CIA operative who has liaised with the FSB in Tajikistan told The Daily Beast that such concerns wouldn’t necessarily stop a clandestine conveyor belt of extremists out of Russia, which is hardly unique to Putin’s regime. “It’s perfectly conceivable that the FSB would take their most violent types and say, ‘Yeah, you want your caliphate? Go set it up in Raqqa.’ The Saudis did this in the 80s with the Afghans. It’s sort of tried and true. We could do the same thing. Of course, we’re not.”

Russian President Vladimir Putin attends an educational youth forum in Vladimir region, Russia July 14, 2015.
Mikhail Klimentyev/RIA Novosti, via Reuters

“What’s the most significant policy decision we made to bring down the Soviet Union?” asks Glen Howard, the president of the Jamestown Foundation and a specialist on the Caucasus and Central Asia. “Us sending foreign fighters into Afghanistan. This is the perfect form of payback. Create a quagmire in Syria, get us bogged down—all the while, offer your cooperation in helping to root out terrorism.”

There’s also the issue of how the Russian government, where it doesn’t kill or capture militants, encourages them to run away through a systematic campaign of harassment. Suspects are put on Salafist watch lists, interrogated, photographed and fingerprinted repeatedly. Some have to submit DNA samples. “All the ones I spoke to,” Lokshina said, “say that once you’re on the watch-list, you no longer have a normal life. It’s as if law enforcement and the security officials are trying to push them out into the forest.” One man in his 40s, Lokshina remembers, who didn’t support violence was stopped in Dagestan and taken into custody by an official who asked him, “Hey, how come you’re not in the woods yet? Your cousin is already with the insurgents, all these people you know are with them and yet how come you’re not?”

If there is indeed a cynical FSB plot to push jihadists into ISIS, then Lokshina thinks it’s occurring at the local rather than national level, as a way for field agents in the North Caucasus to impress their higher-ups back in Moscow with improved security quotas. “This is something members of the police force told me off the record: If you have 10 people registered this month, then there is pressure for you to register 12 next month. It’s all about numbers.”

Andrei Soldatov, a journalist specializing in the Russian security services, agrees. “To me, it looks like a desperate attempt in Dagestan where the FSB tried everything to support radical Islamists to try and pacify the situation,” Soldatov said. “It doesn’t look like a well-thought-out campaign to steer trouble away from the North Caucasus into Syria.”

Nevertheless, trouble has been conveniently steered away from Russia and into the Middle East, leaving many analysts to wonder at how even well-known clerics under 24-hour surveillance managed to slip the watchful eye of the FSB.

Joanna Paraszczuk is a journalist with Radio Free Europe/Radio Liberty who covers the Russian contingent of ISIS fighters, which she believes is in the “hundreds” not thousands, based on documentary evidence she has examined including videos and social media usage. “Many are youngish boys who get recruited in Russia or Dagestan and then go to Istanbul. Then they get taken to ISIS territory, usually Raqqa. Are they on watch lists? How’d they get passports to leave the country? Here’s the weird thing: some of the radical preachers from Dagestan are turning up in the ‘caliphate,’ too.”

One of these is Nadir Abu Khalid, who was under house arrest in Dagestan but has suddenly “popped up” in Iraq with another insurgent called Abu Jihad, a close friend of Abu Umar al-Shishani, the Chechen field commander for ISIS in Aleppo. “What we have right now is a growing number of Dagestani preachers who are forming the core group of recruiters in Iraq,” Paraszczuk said.

And for all Putin’s bellicose tough-on-terror rhetoric this displacement actually suits his interests quite nicely. In June, the Caucasus Emirate, the leading radical insurgency in Russia, pledged allegiance to ISIS, giving Abu Bakr al-Baghdadi’s terror army a nominal affiliate in a major Eurasian country. That fact ought to be terrifying to Moscow. Except that it isn’t. “Russia is very happy about this because it means that it can now blame the local insurgency on ISIS—‘an international group created by the West’—rather than on local problems in the Caucasus,” Paraszczuk said.

In July, Chechnya’s warlord “president” Ramzan Kadyrov took to his favorite social media platform, Instagram, to claim that ISIS was an invention of “Western intelligence agencies…Everyone knows that Abu Bakr al-Baghdadi is also fed by the USA CIA, and was recruited by Gen. David Petraeus during al-Baghdadi’s time as a POW in Camp Bucca in Iraq.”

Jamestown’s Glen Howard agrees that Moscow is using the terror army to feed the monster of anti-American conspiracies in the Muslim world: “I was in Baghdad a year and a half ago. At the al-Rasheed Hotel I saw all sorts of Russians running around with the Iraqi government officials. Iraqis kept repeating to me conspiracy theories about how America created ISIS. Did anyone in Washington ever stop to ask if maybe the Russians are helping that conspiracy theory along in Iraq?”

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Oleg Kalugin, a former KGB general who once headed Moscow’s counterintelligence First Chief Directorate, told The Daily Beast that not only is the Novaya Gazeta story plausible, it’s likely. “I’m pretty sure that what has been reported did in fact happen,” he said. Kalugin noted that Russian intelligence has a long, ignominious history of “pushing forward the more extremist elements and use their facilities to do the most damage to a local population.”

This was the strategy, after all, during the First and Second Chechen Wars when jihadist-warlords such as Shamil Basayev were coopted by Russia’s military intelligence (GRU) in order to vitiate the secular or democratic Chechen movement. Basayev was a useful tool for the Kremlin—at least until the FSB (probably) assassinated him in 2006—because he wasn’t really interested in secession from the Russian Federation; he wanted to establish an “emirate” in the Caucasus. His carnage accomplished two things at once: it cast a pall on the legitimate separatist struggle and offered a wag-the-dog national security justification for a scorched-earth Russian counterinsurgency, which did nothing short of level Grozny.

Anatoly Kulikov, the former chairman of the Russian Interior Ministry and a former deputy prime minister under Boris Yeltsin, told the weekly newspaper Argumenty i fakty in 2002 that he had a “great deal of evidence” to suggest that Boris Berezovsky, then the most powerful oligarch in Russia and a key political advisor to the Yeltsin administration, was using the Russian Security Council to finance Chechen extremists, Basayev included. Much of the money paid was to buy back hostages taken by Basyev’s forces, including journalists who worked for Berezovsky’s media empire. Many observers of this period say that there was ulterior motive of trying to split the opposition and strengthen the extremist Chechen elements at the expense of moderates.

Even one of Berezovsky’s closest friends and allies, Alex Goldfarb, conceded that by 1999, the goal in Moscow had become even more subversive than that: to prompt a guerrilla incursion into Dagestan, which would then green-light a short but popular Russian invasion of the top third of Chechnya, down to the Terek River. A state of emergency would then be declared and national elections in Russia would be postponed in the wake of a cataclysmic financial crash.

In the Russian intelligence playbook, such a gambit is known as provokatsiya. As former NSA analyst John Schindler defines it, the technique “simply means taking control of your enemies in secret and encouraging them to do things that discredit them and help you.” The czar’s Okhrana used it against the Bolsheviks and other revolutionary socialist factions; Lenin and Stalin’s intelligence services used it against the West; and Putin has used it to remarkable effect in Ukraine.

Berezovsky would later be granted asylum in London and would turn into one the most prominent exile critics of Putin, whose rise to power he was largely responsible for. Even before he left Russia, Berezovsky had used his ORT television network to report honestly on the horrors of the Second Chechen War. Putin retaliated by taking ORT away from the oligarch and turning it into a state-run channel. From London, Berezovsky later denounced Putin for working with Chechen extremists— an allegation thrown right back at him by the new master of the Kremlin.

Whatever the truth, there is no denying that Chechnya is indeed ruled in blood-brutal fashion by a former insurgent, Kadyrov, who excels beyond the standards of most post-Soviet dictators by personally torturing his victims. Kadyrov has his own intelligence service and his own guerrilla paramilitary, so-called Kadyrovtsky, battalions of which he has copped to dispatching to the Donbas to fight on behalf of the anti-Kiev (and Moscow-backed) rebellion in Ukraine. There is also widespread suspicion of how his regime both monitors and works with Islamic extremists. Some of Kadyrov’s musclebound henchmen, who have been accused of murder and rape in Moscow, have been arrested only to be let go—on the orders of the FSB brass, and much to the chagrin of subordinate investigating officers.

“Kadyrov is getting money from two sources: the Kremlin and Arab countries,” said Yuri Felshtinsky, a historian who writes about the Russian security services. “The Chechen Republic for all practice purpose is a Islamist republic. What we have there is what we had in Afghanistan; it started with a fight against Russian occupation and ended with extremists taking power.” The problem, according to Felshtinsky, is that it is near impossible to say just how localized any funny business is between jihadism and the intelligence organs; does it begin and end with Kadyrov, who runs his fief semi-autonomously, or does it extend all the way back to Moscow?

Soldatov believes that the FSB relies on Kadyrov for actionable intelligence as to the whereabouts and goings-on of Caucasian jihadists—including those who’ve run off to Syria. “All my contacts inside the FSB and Interior Ministry tell me that it’s extremely difficult to penetrate militant groups. In the mid-2000s, they set up big detention centers in Chechnya to process as many Chechens as possible, to recruit them in prison and release them as informants. We had only a few real examples of successful penetration.” The eventual killing of Basyev, he said, was done by using agents recruited by the FSB.

By 2005, after an attack on state security buildings in Nalchik, in the Kabardino-Balkar Republic in southern Russia, the FSB began cultivating diasporas to establish contact with Islamist militants abroad. “They had a diaspora of Circassians they used to try to make contact with Zarqawi,” Soldatov said, referring to the founder of al-Qaeda in Iraq, ISIS’s first incarnation. “Well, the first thing they needed to start with was a list of those who trained and studied Islam abroad. But the FSB didn’t have such a list. So this raised the profile of Kadyrov; he was able to use his connections inside Chechnya and among the diaspora to become indispensable to Moscow.”

For other analysts, however, it beggars belief that the central Russian government is unaware of this dirty nexus between the regional officialdom and the state’s most radical opponents. “The Russian government has several aims and they’re mixed together and it’s very difficult to say which one applies in any particular case,” Paul Goble, an expert on Russia’s ethnic minorities and a former advisor to the both the U.S. State Department and the CIA, told The Daily Beast. “First, the Russians are not idiots. They’ve thoroughly penetrated militant groups in the North Caucasus. These aren’t ‘controlled’ by Moscow, but they’re wholly penetrated. The easiest way to garner intelligence is to get these militants to go to Syria posing as freedom fighters. Second, Moscow is running out of money to buy off the North Caucasus and needs a new way to oppress the opposition there. Well, the best way to oppress it is to exile it. Better that they should be fighting the U.S.-led coalition in Syria and Iraq than fighting Russian government in Dagestan or Ingushetia.

“It’s like Victor Serge’s Comrade Tulayev,Goble said, referring to the famous 1948 novel based on the assassination of a Stalinist official Sergei Kirov and the consequent dragnet of paranoiac purges that swept the Soviet Union. “Moscow comes up with a broad prescription and you get all sorts of people coming up with ways to implement it.”

David Satter has written extensively on Russian security organs’ double-game with terrorism and, just before the Sochi Winter Olympics last year, became the first American journalist to be banned from Russia since the end of the Cold War. “No sooner did Chechnya emerge as a quasi-independent state than there appeared Islamists who demanded that the population only submit to the laws of Allah and not to the government,” he said. “This is something people in the West have a very hard time understanding. Russian authorities and particularly the FSB don’t react to acts of terror with the horror that people in the West do. They just see it as one more tactic that can be used by a regime to advance its aims. It can be used against foreigners and it can be used against its own people.”

Satter’s Darkness at Dawn: The Rise of the Russian Criminal State deals at length with the September 1999 apartment bombings in Moscow, Buinaksk, in Dagestan, and Volgodonsk, in Rostov, which collectively killed 300 Russian civilians and wounded hundreds more. Today, a bevy of credible observers, both within and without Russia, believe that these operations were actually orchestrated by the FSB and blamed on Chechen jihadists as a pretext for launching the retaliatory invasion which, in the event, got underway three weeks later. “They also served to propel a little-known retired lieutenant colonel in the secret police, who had been appointed by President Yeltsin to the post of acting prime minister a month previously, into the Russian presidency,” in the words of John B. Dunlop, a senior fellow at the Stanford University-based Hoover Institution, who has published his own monograph on the mysterious apartment immolations. “Three-and-a-half months after the Moscow bombings took place,” Dunlop wrote, “Putin was elected president of the country in March of 2000.”

Putin had served as FSB director right up until the bombings when he was appointed prime minister in August 1999. This more or less coincided with an Islamist militant incursion into western Dagestan from Chechnya, led by Basayev— an incursion many believe was quietly planned and unwritten by the Kremlin as the ultimate form of provokatsiya. A week and a half after the second apartment bombing, of a building on the Kashirskoye Highway in Moscow, Putin used a locution that would be remembered both for its borrowing from the Russian criminal argot and for catapulting him, a once obscure Yeltsin silovik, into national prominence and power. “We will pursue the terrorists everywhere,” he declared. “If they are in an airport, then, in an airport, and, forgive me, if we catch them in the toilet, then we’ll rub them out in the crapper in the final analysis.”

The strongest evidence to date that the agency Putin had headed just weeks earlier was in fact behind the attacks he vowed ultimate vengeance for—attacks which would have required months of planning—is the bomb that failed to go off.

Not long after 9 p.m. on September 22, 1999, residents of an apartment building in Ryazan, a city southeast of Moscow, reported three suspicious people leaving their basement and driving off in the same car. They went into the basement and discovered several large sacks typically used to carry sugar rigged with wiring and an electrical device. Ryazan police were called; the head of the local bomb squad declared the sacks were in fact a “live bomb.” They also tested positive for hexogen, a highly combustible agent that is both extremely difficult to obtain in Russia given its status as regulated by Russia’s “power ministries” (i.e. the police, intelligence and military). It was also the same substance used in the previous apartment bombings. The detonator for the Ryazan bomb was set to activate at 5:30 a.m. Had it gone off, all 250 residents of the building would have likely been killed.

On September 23, a day later, an operator connected a call to Moscow from a public telephone designed for inter-city communication and said that the voice on the receiving end told the caller: “Split up and each of you make your own way out.” The operator alerted the police who traced the number and found that it belonged to the FSB. “A short time later,” Satter wrote (PDF), “with the help of tips from the population, the police arrested two terrorists. They produced identification from the FSB and were released on orders from Moscow.”

On September 24, a day and a half after the abortive attack, Nikolai Patrushev, Putin’s successor as FSB director, claimed that the Ryazan bomb had been a fake and the entire plot nothing more than a “training exercise” designed to test the vigilance of local communities in detecting terrorist activity. The stuff tested positively as hexogen? It was just sugar, according to Patrushev, contradicting what every Ryazan first-responder had claimed, not to mention Putin and Interior Minister Vladimir Rushailo, both of whom were on record in deeming the explosive all too real.

If it was just a training exercise, then why were some 30,000 residents of the city made to stand out on the street all night when the nothing-to-see-here reality of the operation can have been disclosed immediately? The sapper who defused it months later told Pavel Voloshin, a reporter with with Novaya Gazeta, that the detonator had been military-grade and clearly designed by a professional.

Subsequent efforts for a parliamentary inquiry were blocked by Unity, the pro-Kremlin party under whose banner Putin would run for, and win, the presidency shortly before the party was dissolved in 2001. As journalist Maxim Glinkin observed in 2002, reflecting on the terrible spate of atrocities that led to Putin’s political ascendance, “The authorities are conducting themselves like criminals in an Agatha Christie novel who have been almost caught out by Hercule Poirot.”

And Then There Were None certainly seemed a subplot for anyone in Russia trying to uncover the truth about these grim events.

Among those who at least share the theory that the FSB was behind the bombings were two former FSB agents, both of whom became targets after airing their allegations. One was Mikhail Trepashkin, like Putin a former lieutenant colonel, assigned to the Protection Administration of the FSB, which is tasked with keeping fellow officers and their families safe. Trepashkin had in the mid-90s uncovered evidence that Russian law enforcement, including the FSB, had connived with Chechen extremists and criminal elements in Moscow. He would even be awarded a medal of valor for his efforts but was later marginalized in the Protection Administration after clashing with the its then-commander—Nikolai Patrushev.

Trepashkin claimed to have uncovered the “Mohammed Atta” of the Moscow apartment bombings, a man called Vladimir Romanovich, who was both an FSB agent and a mob boss — hardly a redundancy after the collapse of the Soviet Union. He was arrested in 2003 on the charge of possession of illegal weapons he insists were planted in his car. Trepashkin was sentenced to four years of hard labor on a second count of disclosing a state secret. Amnesty International found the entire case against him had been politicized, using fabricated evidence. He was released from prison in November 2007 after suffering extreme illness, for which he was never properly treated. (The Daily Beast tried unsuccessfully to reach him for comment on this story.)

The other FSB officer to accuse his employer of perpetrating state terrorism against the Russian people was Alexander Litvinenko, who had worked for the economic crimes division of the service and had exposed the collusion between law enforcement and organized crime. Litvinenko fled Russia for London in 2000 and became an informant and spy for the British security services, briefing E.U. countries on the infiltration of Russian gangsters (and Russian intelligence assets) on their soil. Along with Yuri Felshtinsky, he wrote Blowing Up Russia: Terror from Within, arguing that the apartment bombings were false flag operations intended to precipitate the Second Chechen War and therefore platform the grey blur that was Vladimir Putin as Yeltin’s successor. Litvinenko was poisoned to death at a London hotel in 2006 after Polonium-210, a radioactive isotope, was poured into his tea. The perpetrators of that assassination, according to Scotland Yard, are almost certainly Dmitri Kovtun, a former Soviet army officer, and Andrei Lugovoi, a former FSB officer and now a much be-medalled Duma deputy. The Russian state, the British government has concluded, “is likely to have been the sponsor of this plot” because of its desire to see Litvinenko silenced for good.

In 2011, to commemorate the 10-year anniversary for the apartment bombings, journalist Anton Orekh called them “a key moment in our most recent history. Because if those bombings were not accidental in the sequence of events which followed: if, to put it bluntly, they were the work of our authorities—then everything will once and forever take its proper place. Then there is not and cannot be an iota of illusion about the [nature of] those who rule us. Then those people are not minor or large-scale swindlers and thieves. Then they are among the most terrible criminals.”

Following the Boston Marathon bombing, American counterterrorism officials queried the failure to follow up on a lead provided by the FSB about Tamerlan Tsarnaev, the elder of the two terrorists responsible for the attack, which was sent first to the FBI and then to the CIA. In April 2014, an unclassified summary of a 168-page classified assessment prepared on the marathon bombings by the Inspectors General for the CIA, Department of Justice and Department of Homeland Security was released to the public. It found that in March 2011, the FSB sent a memo, in Russian, to the FBI Legal Attache in Moscow concerning Tamerlan Tsarnaev and his mother, Zubeidat Tsarnaeva.

“According to the English translation used by the FBI,” the unclassified summary read, “the memorandum alleged that both were adherents of radical Islam, and that Tamerlan Tsarnaev was preparing to travel to Russia to join unspecified ‘bandit underground groups’ in Dagestan and Chechnya and had considered changing his last name to ‘Tsarni.’ The Russian authorities provided personal information about both Tamerlan Tsarnaev and Zubeidat Tsarnaeva, including their telephone numbers and e-mail addresses, and requested that the FBI provide the FSB with specific information about them, including possible travel by Tsarnaev to Russia.”

The FSB memorandum gave two incorrect birthdates for Tamerlan: October 21, 1987, and the same calendar date in 1988. Also, because of likely owing to the variability of transliteration from Cyrillic into English, the surnames were spelled differently—Tsarnayev and Tsarnayeva — from how Tamerlan and Zubeidat spelled them in America (minus the “y”). The FBI Legal Attache replied to the FSB acknowledging receipt of the memorandum and “requesting that it keep the bureau informed of any details it developed” on mother and son. Whether or not any additional details were ever dispatched to the FBI is not disclosed in the unclassified summary. All that is mentioned is that in September 2011, the FSB sent a near-identical memorandum to the CIA.

Most of the Inspector Generals’ assessment of the bombing focused on the FBI-led Boston Joint Terrorism Task Force’s failure to query Tamerlan about his travel plans to Russia when it interviewed him and his parents, and on its failure to respond to an alert it was sent once he flew from New York to Moscow in January 2012, a year after he’d been added to a terrorism watchlist. Tamerlan returned to New York from Moscow around six months later, in July 2012. Nevertheless, the assessment found that all U.S. agencies under scrutiny had “followed procedures appropriately” given the information available to them at the time.

Nevertheless, Massachusetts Rep. Bill Keating, who sits on the House Homeland Security Committee, was scathing about the lack of forthrightness shown after the marathon attacks by American law enforcement. “I got more information from Russia than I did from our own FBI,” Keating told Boston Public Radio in August 2013.

Did the FSB really try to help the U.S. in surveilling or apprehending a dangerous jihadist? “On the Tsarnaev brothers, they did tell us once, and then they stopped,” said Mike Rogers, the former chair of the House Intelligence Committee. “When the FBI made further inquiries, they stopped cooperating. I thought that was really interesting because clearly they knew the Tsarnaevs were being radicalized.”

There is evidence that the FSB also sat on more than it had disclosed in its dual memoranda to the two U.S. agencies. It had intercepted telephone calls made by and between Tamerlan and Zubeidat. In one, the son discussed jihad and the possibility of going to Palestine. In another, the mother spoke to someone in the Caucasus who was under FBI investigation. But how did Tamerlan manage to arrive unmolested at Moscow’s Sheremetevo Airport in January 2012, then proceed to Dagestan, after the FSB was obviously aware of his purported plans to join “bandit underground groups”?

Still another Novaya Gazeta reporter, Irina Gordienko, found that Tamerlan had in fact tried to join the Caucasian underground and that officials from the Republic of Dagestan Center for Combating Extremism (RDCCE), a body run out of the Russian Interior Ministry, had put him on a surveillance list after he caught their attention in April 2012, four months after his trip to Russia. He’d been associating with Makhmud Mansur Nidal, an 18-year-old suspected of acting as a jihadist recruiter.

Gordienko found that Tamerlan had only stayed in Makhachkala, the capital of Dagestan, where his father lived, save for a brief trip to Chechnya in March 2012. Yet in May, Russian special forces killed Nidal in a raid in Makhachkala, after which Tamerlan moved out of his father’s apartment and stayed with other relatives in the city.

In her investigation, Gordienko also disclosed that in 2011, the FSB requested information from the FBI on Tamerlan because his name had come up after the detention and interrogation (which likely involved torture) of William Plotnikov, a 21-year old Russian-Canadian convert to Islam, who traveled to Dagestan. Plotnikov had reportedly been in touch with Tamerlan via Islamic social media outlets. Plotnikov was released due to a lack of criminal evidence; then in July 2012, he too was killed in another raid, this one near the village of Utamysh in Kayakent District.

After the death of his second jihadist contact, Tamerlan apparently disappeared from the Russian authorities’ sight. “The police came to visit his father, but the father claimed that everything was fine, that his son had returned to the USA,” Gordienko wrote. “They didn’t believe his father, and supposed that Tsarnaev had gone off to the forest. They were made cautious by the fact that Tamerlan left without waiting to pick up his passport, the documents for which he had submitted at the end of June 2012.” The FSB then sent a second inquiry, this one to the CIA, seeking more information on the elder Tsarnaev brother. That one never got answered either.

In 2013, Dagestan’s police chief denied that Tamerlan was recruited to the “bandit underground” or had any contact with members of it; although the same police chief also (erroneously) insisted that Tamerlan was in Makhachkala for only a few days, relying on testimony from the boy’s father. So assuming Gordienko’s reporting is accurate, the questions arise: how did Tamerlan get from Makhachkala to Moscow, then board a plane back to New York, if he was wanted for questioning by the Russian security services? And did the FSB, in seeking information from the CIA, ever alert it to the fact the Tamerlan had now vanished from its purview in a hotbed of fundamentalist insurgency?

It was not the first time a terrorist had gone into the wind in Dagestan. In 1996, Ayman al-Zawahiri, today the leader of al-Qaeda, was arrested in Dagestan where he’d gone to scout Chechnya as a possible safe haven for Egyptian Islamic Jihad, the terrorist organization he headed before joining bin Laden’s franchise and which was made world-famous for its role in assassinating Egyptian President Anwar Sadat in 1981. Zawahiri posed as a Sudanese businessman named Abdullah Imam Mohammed Amin who claimed to work for an Azeri trading firm and carried with him $6,400 in cash, in multiple foreign currencies, a laptop and other communication devices. He traveled with two Islamic Jihad members, who also used phony names and passports. They were grabbed by Russian police within hours of reaching Dagestan, interrogated, then moved to a remote prison near Makhachkala.

The FSB sent Zawahiri’s laptop to Moscow for analysis. Even still, the Russians claimed that they never knew who they had in their midst and were dumbfounded by the outpouring of Muslim and Islamist support for the three “businessmen.” At their trial, Zawahiri told the judge, “We wanted to find out the price of leather, medicine and other goods.” (He’d later write that “God blinded them to our identities.”)

The three jihadists ended up doing six months in jail, at the end of which they got their laptop back. Had the FSB, which hardly lacks for expert Arabic speakers, not gone through the files it contained, or did “Mr. Amin” and company cover their tracks digitally, too? More than twenty years on, the history of this bizarre interlude in the curriculum vitae of one of the world’s most wanted terrorists has never been established.

Once released, Zawahiri spent another 10 days meetings Islamists in Dagestan before repairing to Afghanistan. “Every Ivan Ivanovich KGB and GRU officer who served in Egypt in the late 70s and 1980s knew who Zawahiri was because of his involvement in the Sadat assassination,” said Jamestown’s Glen Howard. “They’d have seen his pictures on Egyptian TV in a massive cage broadcast live following his arrest and trial. So for Moscow to arrest him in Dagestan in 1996 and hold him for six months in a Dagestani jail cell and claim they never knew who he was—well, this is pure nonsense.”

Howard and Satter both believe that the FSB is likely sitting on more than it will ever share with the Americans about Tamerlan Tsarnaev’s half-year in Dagestan, too. Though both are keen to also note that the Kremlin has used every opportunity to exploit the Boston atrocity in two contradictory ways.

First, it has amplified the importance of counterterrorism cooperation between two post-Cold War rivals, now at odds again. Bortnikov’s RSVP to Obama’s summit on violent extremism was a major propaganda coup for the FSB, as was his sudden stature boost in the U.S. intelligence establishment following the marathon bombings. “Bortnikov has been playing up for three years his raised international profile,” said Soldatov. “For him, this is a huge success because it’s kept him off the U.S. sanctions list.”

Second, while proffering the hand of friendship in Washington, the siloviki have wasted no effort slandering their intelligence counterparts in the CIA for creating the very terrorism unleashed on American soil, chiefly by propagating all manner of conspiracy theories as to how Tamerlan became radicalized. And here, Howard’s own organization has been conscripted in a hysterical propaganda campaign.

In April 2013, two months after the Boston attacks, Russia’s state-owned newspaper Izvestiya ran an article alleging that while he lived in Dagestan, Tamerlan had attended “events and seminars” put on jointly by the Caucasian Fund, a Georgian NGO, and the Jamestown Foundation. “Izvestia has obtained some documents from the Georgian Interior Ministry’s Department of Counter-intelligence which confirms that the Georgian organization Caucasian Fund is collaborating with the American non-profit organization Jamestown Foundation (Zbigniew Brzezinski, U.S. foreign policy ideologue, was formerly on Jamestown’s board of directors),” the piece stated, laying it on with a trowel, “and has been recruiting residents of the North Caucasus to work in the interests of the United States in Georgia.” Russians are apparently “recruited at these seminars and trained for terrorist attacks.”

The Jamestown Foundation rejected the allegation as absurd. The Georgian Ministry of the Interior added that the Georgian Col. Grigor Chanturia, the lynchpin of Izvestia’s supposed reporting, wasn’t a real person. No matter. The Kremlin’s English-language propaganda mill RT picked up the story uncritically, as did InfoWars.com, the feverish website run by Alex Jones, which has not yet encountered a conspiracy theory it didn’t like.

US Patent Office, Fraudulent Employees Play Golf

Is there any government agency that is without scandal? The fleecing of the taxpayer is without limits.

The 29 page investigation report is here.

Since we tend to forget, how about a reminder that Barack Obama said he would go through the budget line by line.

Well in 2011: GOP: Obama never scoured budget ‘line by line’

The Hill: House Republicans are arguing President Obama broke a promise to scour the federal budget “line by line” to look for savings. 

Obama made the promise during the 2008 campaign, but House Energy and Commerce Investigations subcommittee Chairman Cliff Stearns (R-Fla.) and committee Republicans insisted Wednesday there is no evidence that the Office of Management and Budget (OMB) conducted such an exhaustive review.

Stearns also said that the $17 billion in program savings Obama’s budget office found was half of that found in the Bush administration.

Republicans said that Obama’s review does not differ from the ordinary presidential budget process and that the president has exaggerated any savings found by including tax increases and savings from drawing down the wars in Iraq and Afghanistan.

Congressional Research Service expert Clinton Brass said he would be “surprised” if the president would be able to take the time to read his entire budget. He testified that the administration has produced a list of programs to be terminated or reduced, but that such a list was also produced in prior administrations.

Democrats at a Wednesday hearing said Obama was speaking figuratively when he said he would conduct a line by line review.

“If this is a ‘gotcha’ hearing on whether the administration has actually done a line-by-line review, I reject its premise,” Rep. Henry Waxman (D-Calif.) said. “There is no question if it has examined the budget closely … I am afraid my colleagues have misunderstood a figure of speech.”

Republicans were irate that OMB would not send Budget Director Jack Lew to explain whether a line-by-line review was conducted. Committee ranking member Rep. Diana DeGette (D-Colo.) also said she regretted that OMB would not send anyone to testify.

Committee staff said that OMB told them Lew does not testify to subcommittees, and since there is no confirmed deputy director, there is no one available to testify.

At the hearing, Waxman said Congress should look in the mirror at its own budget failings. He pointed out that Speaker John Boehner (R-Ohio) promised to do away with omnibus spending bills and is now contemplating one. He also said Congress has delegated important responsibilities to the deficit supercommittee.

*** None of these things are working out well at all, certainly since 2011. So how about that Patent Office?

Government Employee Paid to Golf, Play Pool

FreeBeacon:

Taxpayers paid a government worker at the U.S. Patent Office to play golf and pool, according to an investigation by the Commerce Department’s Office of Inspector General (OIG) that found nearly half of the employee’s billed hours were fraudulent.

The employee, who worked as a patent examiner in the U.S. Patent and Trademark Office (USPTO), earned over $70,000 a year despite “egregious time and attendance abuse,” which was not checked by managers at the office. The employee, referred to in the report as “Examiner A,” resigned after learning of the OIG’s investigation.

“According to the evidence, Examiner A received payment for over 18 full weeks of work, in aggregate, that he did not actually work,” the audit said. “Ultimately, USPTO management’s system of internal controls did not detect Examiner A’s time and attendance abuse; to the contrary, these issues did not come to light until a whistleblower submitted anonymous notes to the examiner’s supervisor and another manager.”

The anonymous letter in August 2014 that sparked the investigation said the employee “never shows up to work,” “seems to get away with anything,” and that he would only come into the office at the end of every quarter to submit “garbage” work.

“The note questioned how the supervisors could ‘allow this type of behavior’ to occur and why Examiner A had not ‘been fired by now for performance,’” the OIG said.

In all, the employee “committed at least 730 hours of time and attendance abuse, resulting in the payment of approximately $25,500 for hours not worked in FY 2014 alone.” The majority of the hours he did not enter the office building, or use his government-issued laptop.

The abused hours accounted for 43 percent of the employee’s total hours for the year. The hours amounted to 91 eight-hour workdays, or roughly 3 months. The OIG recorded 58 full workdays where there was no evidence that he entered the building.

However, the OIG said the employee likely got away with being paid for more hours he was not working because the employee was “given the benefit of the doubt.”

The employee was paid for full days of work, even though he often left to “hit golf balls at Golf Bar, play pool, or socialize at restaurants.”

The OIG examined instant messages between the employee and his coworkers about hitting the driving range.

One message occurred just before 1 p.m., after the employee spent less than 3 hours at the USPTO office.

“Ok, did u wanna [hit golf balls at Golf Bar] today at all?” he said. His coworker replied, “actually yeah, let’s just go there now?”

“I’ll walk over lemme just hit the restroom,” the employee said.

The other employee also said he was probably leaving soon anyway, saying, “godda go watch walking dead, etc.”

On another occasion the employee tried to convince a colleague to leave to play pool because he was “bored,” but they declined because they were “writing up a case.”

“Call me later if you wanna chill,” he said.

The USPTO did not review the employee’s time and attendance records despite “numerous red flags” the OIG said. The employee also was not fired despite receiving an “unacceptable” performance rating in 2012, 2013, and 2014, and “numerous complaints” about his work.

The employee’s supervisor said he “never suspected” that he was violating work policies, and cited that numerous employees at the USPTO have flexible work schedules that allow telecommuting.

The OIG has found attendance abuse in the agency before. Paralegals working for the agency were “paid to do nothing,” passing their time watching Netflix, doing laundry, and shopping online, costing taxpayers at least $5 million.

The audit warned that telework abuse could be widespread, given that nearly 10,000 patent office employees work from home at least once a week, and 5,000 work from home full time, or four to five days each week.

“While this report presents a case study of only one individual’s time and attendance abuse at USPTO, it illustrates the difficulties in preventing and detecting such activity in USPTO’s geographically dispersed workforce,” the OIG said.

“Although the USPTO has touted the benefits of its telework program, such as a reduction in rent, increases in employee satisfaction and retention, and a workforce much less affected by severe weather and traffic, this and other OIG efforts show that these programs also carry risks for abuse,” they said.

The OIG said the agency should try to recover the $25,500 in fraudulent pay through the legal system.

 

Who is at Fault When it Comes to Syria Refugees?

This matter comes down to no policy on the war in Syria and the misguided, yet no less corrupt leaders in this matter include the National Security Council at the White House, Barack Obama himself and the failed control and management at the State Department which began with Hillary Clinton and now with John Kerry.

The United Nations is at the core of the mismanagement and Western countries are left to clean up the mess, while some are now saying NO.

U.N. Calls on Western Nations to Shelter Syrian Refugees

“In the case of Syrian refugees, our intelligence on the ground is alarmingly slim, making it harder to identify extremists,” said Representative Michael McCaul, Republican of Texas and chairman of the House Homeland Security Committee.

The United Nations high commissioner for refugees, António Guterres, has stepped up calls for industrialized countries, including the United States, to shelter 130,000 Syrian refugees over the next two years.

The figure is a fraction of the nearly four million refugees who have poured into the countries bordering Syria — chiefly Jordan, Lebanon and Turkey — straining their resources and plunging many displaced people into poverty.

So far, the high commissioner’s pleas have not been met. Governments around the world have promised to take in just under two-thirds of what the United Nations is urging, while a great many more Syrians have chosen to make perilous journeys by land and sea in search of asylum in Europe. More here from the New York Times.

McCaul Says Admitting Unvetted Syrian Refugees into the U.S. is “Very Dangerous”

WASHINGTON, D.C. – Chairman Michael McCaul, of the House Homeland Security Committee, wrote a letter to President Obama last Thursday expressing concerns over the Administration’s announced plans to resettle some 2,000 Syrian refugees in the United States this year. Terrorists have made known their plans to attempt to exploit refugee programs to sneak terrorists into the West and the U.S. homeland. Chairman McCaul’s letter points out the potential national security threat this poses to the United States.

Chairman McCaul: “Despite all evidence towards our homeland’s vulnerability to foreign fighters, the Administration still plans to resettle Syrian refugees into the United States. The Director of the National Counterterrorism Center and the Deputy Director of the FBI both sat before my Committee this Congress and expressed their concern with admitting refugees we can’t properly vet from the global epicenter of terrorism and extremism in Syria. America has a proud tradition of welcoming refugees from around the world, but in this special situation the Obama Administration’s Syrian refugee plan is very dangerous.”

Read Chairman McCaul’s letter HERE.

 

The Subcommittee on Counterterrorism and Intelligence will hold a hearing on June 24th to examine the refugee resettlement program and discuss vulnerabilities to our security exposed by the Administration’s plan.

It was last year that Barack Obama lifted restrictions on the refugee program.

U.S. eases rules to admit more Syrian refugees, after 31 last year

President Barack Obama’s administration announced on Wednesday that it had eased some immigration rules to allow more of the millions of Syrians forced from their homes during the country’s three-year civil war to come to the United States.

Only 31 Syrian refugees – out of an estimated 2.3 million – were admitted in the fiscal year that ended in October, prompting demands for change from rights advocates and many lawmakers.

Hundreds of thousands of Syrians have been taken in by neighboring countries such as Jordan, Lebanon and Turkey.

The rules changes granted exemptions on a case by case basis to the “material support” bar in U.S. immigration law, according to an announcement in the Federal Register signed by Secretary of State John Kerry and Jeh Johnson, the Secretary of Homeland Security.

That bar had made it impossible for anyone who had provided any support to armed rebel groups to come to the United States, even if the groups themselves receive aid from Washington.

The advocacy group Human Rights First said, for example, that the existing law had been invoked to bar a refugee who had been robbed of $4 and his lunch by armed rebels, and a florist who had sold bouquets to a group the United States had designated as a terrorist organization.

“These exemptions will help address the plight of Syrian refugees who are caught up in the worst humanitarian crisis in a generation,” Illinois Senator Richard Durbin, chairman of the U.S. Senate subcommittee on human rights, said in a statement.

It was not immediately clear how many Syrians would be affected by the rules change.

By early January, 135,000 Syrians had applied for asylum in the United States. But the strict restrictions on immigration, many instituted to prevent terrorists from entering the country, had kept almost all of them out.

Washington has provided $1.3 billion in humanitarian assistance to aid Syrian refugees. This year, the United Nations is also trying to relocate 30,000 displaced Syrians it considers especially vulnerable. Witnesses at a Senate hearing last month had testified that Washington would normally accept half.

How Servers are Really Involved in Hillary’s Server-Gate

 

Hillary admits during an interview she has an iPad and iPhone along with her NON-Government issued Blackberry.

Okay, we were told that Bill had one and it was not expandable for Hillary to use when she was a senator. She bought one of her own. Then we hear about a server that was in a bathroom, a server that was in a data center in New Jersey, yet are we sure we have an accurate could, an accurate handle on locations and what does the FBI have at this point?

Hillary’s emails WERE backed up to another server – and it may still exist – as the FBI works to figure out how well the data was scrubbed

DailyMail: Tens of thousands of emails once housed on former secretary of state Hillary Clinton’s private computer server were moved to another device after a Colorado company took possession of the device in 2013, leaving open the possibility that copies of messages Clinton later chose to delete might still exist.
The FBI seized the server this week in a stunning move, signaling a new intensity in the investigation into whether Clinton knowingly send or received top-secret classified information through her private address while she was America’s top diplomat.
Bloomberg reported Thursday night that Barbara Wells, an attorney for Platte River Networks, Inc., confirmed that while the server hardware now controlled by the FBI ‘is blank and does not contain any useful data,’ its contents could still be safe and sound elsewhere.
That’s because the server’s messages were ‘migrated’ to another server that still exists, she said, before ending the Bloomberg interview without specifying where that device is located and who owns it – only that her company no longer has it.

‘The data on the old server is not now available on any server or device that is under Platte River’s control,’ Wells said.
A Monmouth University poll, released Wednesday, shows that 52 per cent of American voters believe the federal government should pursue a criminal investigation in the case.
That number might soon grow: The Monmouth survey was conducted before the server landed in the hands of law enforcement, along with three thumb drives held by her lawyer that reportedly contain raw copies of 30,490 emails she handed over to State Department investigators late last year.
A random sample of 40 of those messages examined by U.S. Intelligence Community Inspector General Charles McCullough’s office included two that contained information later classified as ‘top secret.’
Another 31,830 emails, however, were deleted at Clinton’s request after her staffers sifted through them and determined that they were personal in nature.
Republicans on Capitol Hill cried foul in March after she casually acknowledged during a combative press conference that she had made that decision without oversight from anyone in government.
Clinton and her presidential campaign have insisted, most recently in a 4,000-word explanation this week, that those messages were not work-related.

Clinton used an ‘@clintonemail.com’ address exclusively during her four years as secretary of state instead of keeping her correspondence on a ‘@state.gov’ account. That made it more likely that her emails were open to hackers, and made it impossible for the State Department to keep a complete archive.
An aide to a Republican member of the Senate Intelligence Committee told DailyMail.com that McCCullough has been pressed to give Congress regular updates if more classified information is discovered.
‘We’re not letting go of this,’ he said, while denying that going after Clinton was a political exercise.
‘I don’t care if it’s Hillary Clinton or Ted Cruz,’ he said, naming a Texas senator who is running for president, but who is not a committee member. ‘If we don’t aggressively follow this wherever it leads, what good are we?’
It’s not clear if Clinton’s long-deleted data actually exists on another machine, even though Wells says it was once moved there.
But even if it’s gone for good, the FBI’s digital forensic experts may be able to recover some or all of it from the ‘clean’ Platte River server – depending on the method that was used to ‘wipe’ it.
Methods also exist to determine if traces of a malicious hack remain behind.
Hard drives store information in large sections that are separate from a ‘directory’ block – a sort of table of contents that tells a computer where to find each file’s many constituent pieces. Click here for a timeline of email facts, dates and people.

 

So Long to the Oreo Cookie

A piece of Americana has taken the route south, Mexico. May we suggest the Hydrox cookie of yester-year?

Maybe at issue is the corporate tax structure. Maybe it is the increase in the misguided minimum wage. Maybe it is the diving work ethic. Maybe it is Michelle Obama’s attack on food. Maybe those liberal mayors like New York’s former mayor Bloomberg all regulating free choice of food. Maybe it is all that re-tooling of nutritional food labels. Maybe it is all of those.

How US Sugar Policies Just Helped America Lose 600 Jobs

The manufacturer of Oreo cookies recently announced plans to move production of Oreos from Chicago to Mexico, resulting in a loss of 600 U.S. jobs.

This should be a wake-up call to defenders of the U.S. sugar program and other job-destroying trade barriers.

The leading ingredient in Oreos is sugar, and U.S. trade barriers currently require Americans to pay twice the average world prices for sugar.

Sugar-using industries now have a big incentive to relocate from the United States to countries where access to their primary ingredient is not restricted.

If the government wants people making Oreo cookies and similar products to keep their jobs, a logical starting point would be to eliminate the U.S. sugar program, including barriers to imported sugar.

This obvious connection between the lost jobs and sugar quotas was missed by many observers. According to one online commenter: “This is why tariff[s] on products coming to U.S must be raised.”

That’s backwards. When protectionist policies like the U.S. sugar program lead to offshoring, the response shouldn’t be to pass new laws to discourage such offshoring or to raise tariffs even higher. The response should be to eliminate government policies that encourage offshoring in the first place.

The loss of Oreo cookie jobs should reinforce a lesson on the job-destroying aspect of protectionist trade policies.

According to a 2006 report from the government’s International Trade Administration: “Chicago, one of the largest U.S. cities for confectionery manufacturing, has lost nearly one-third of its SCP manufacturing jobs over the last 13 years. These losses are attributed, in part, to high U.S. sugar prices.”

That lesson appears to be lost on unions that are supposed to represent the workers losing their jobs in Chicago.

For example, The Bakery, Confectionery, Tobacco Workers and Grain Millers Union consistently has opposed free trade agreements with sugar-producing countries like Australia, Brazil, and Mexico—the kind of trade deals that just might protect their members’ jobs.

So that’s how the cookie crumbles.

2014….the Comeback

The Oreo-buster is back.

Hydrox cookies, those Oreo-like chocolate sandwich cookies, could reappear on store shelves as early as September, says Ellia Kassoff, CEO of Leaf Brands, which recently acquired the rights to the unused Hydrox trademark.

“The cosmic difference between Hydrox and Oreo is that Hydrox is a little more crispy; a little less sugary and stands up better in milk,” says Kassoff, who will make the official announcement later this month at the Sweets & Snacks Expo in Chicago on May 20.

Even in a new world of nutritional consciousness, there is little evidence that America’s sweet tooth is fading. Sales of packaged cookies and baked goods are expected to top $17 billion by 2017 — up from $13 billion in 2012, reports Packaged Facts. While the return of Hydrox is expected to be a hit with Baby Boomers who may fondly remember the brand — formerly owned by Kellogg’s, Keebler and Millennials who are not very familiar with the cookie brand, which hasn’t been regularly sold on store shelves in almost a decade.

“We’ll use social media to reach out to Millennials,” says Kassoff. The 46-year-old CEO says that he likes to acquire old brands or trademarks that still have fans. “We recycle brands that get left on the side of the road.”

But the Hydrox brand has special meaning to him. As a young kid raised by parents who were Orthodox Jews, he was only permitted to eat Hydrox — not Oreos — because, he says, at the time, Oreos were not kosher but Hydrox were. Today, both are kosher.

The move by Leaf Brands — which also owns trademarks to Astro Pops, Wacky Wafers and Farts Candy — comes just two years after giant Oreo celebrated its 100th birthday. Little-known, however, is that Hydrox was the original creme-filled chocolate sandwich cookie when it debuted in 1908 — followed four years later by Oreo.

But executives at Mondelez, which owns the Oreo brand, are hardly showing any signs of concern. “Oreo is America’s favorite cookie,” says Laurie Guzzinati, a company spokeswoman. She declined to comment specifically on the return of Hydrox. Oreo sales, which exceed $2 billion globally and $1 billion in North America, have grown double-digits in the U.S. for the past two years.

Its been years since Oreo had a genuine rival on the shelf. Kellogg stopped making Hydrox in 2002. Then, in 2008, when Hydrox turned 100, Kellogg briefly resumed distribution, but only for a limited time.

Hydrox still has an online fan page, and a few months ago, Bill Burnett, of Salina, Okla., posted this wishful note about Hydrox: “My brother and I loved them. I never got a taste for the inferior “Oreo,” which was far less tasty as the wonderful Hydrox. I think I’ve only bought one package of them in 50 years! Bring Hydrox back again!”

In fact, says Kassoff, it’s fans like Burnett who convinced him to bring back the brand. “I hear from all of them,” he says. “I know millions of people are waiting for the product.”

But unlike the cookies giants, which typically must sell at least $100 million worth of a brand for it to be an even modest success, Burnett says he can sell a fraction of that and do just fine.

The pricing will be roughly where Hydrox was for years: less expensive than Oreos but more expensive than store brands. If a 14-ounce package of Oreos retails for about $4; Hydrox will be $3 and store brand sandwich cremes often cost about $2, he says.

But success won’t come simply. At least one brand guru says Hydrox has lots of work to do. “Oreo conveys round and is fun to say and hear. Hydrox sounds scientific and medicinal … not appetizing at all,” says Steven Addis, CEO of Addis. “Oreo has become part of the fabric of America. Like Coke. This makes it somewhat unassailable, even from a superior product.”