Paid Cash for Real Estate or via LLC, Read on…

Note, there are other cities where real estate money laundering occurs with frequency. They include San Diego, Los Angeles, Houston, Dallas, Las Vegas, Chicago and Atlanta.

There are guidelines for real estate professionals, click here.

Money laundering also occurs in commercial real estate, click here.

The official 21 page document on real estate money laundering is here.

Click here to see an actual case that involved a Russian.

U.S. targets money laundering in all-cash home sales in Miami, Manhattan

Reuters: The United States is hunting down international criminals who launder money through real estate deals, with the Treasury Department ordering title insurance companies to report the identities of people paying cash for high-end properties in Miami and Manhattan.

The Financial Crimes Enforcement Network, an arm of the U.S. Treasury, said on Wednesday it is concerned that individuals buy residential real estate in cash through shell companies to hide their assets and veil their identities.

“We are seeking to understand the risk that corrupt foreign officials, or transnational criminals, may be using premium U.S. real estate to secretly invest millions in dirty money,” FinCEN Director Jennifer Shasky Calvery said in a statement.

FinCEN has issued rules aimed at preventing laundering through the mortgage market, but “cash purchases present a more complex gap that we seek to address,” Calvery added.

Title insurers will have to disclose buyer identities in deals of at least $1 million in Miami and at least $3 million for Manhattan, the Miami Herald reported. FinCEN did not answer Reuters’ requests for details.

Research conducted by the Homeland Security officials suggests that the majority of real estate purchases of at least $1 million in Florida’s Miami-Dade and Broward counties are made through shell companies, said John Tobon, deputy special agent in charge at Homeland Security Investigations in Miami.

Money trails linked to drug trafficking, foreign corruption and other criminal activity often lead to luxury real estate properties, but when agents try to determine the true, or “beneficial” owners, they find only documents listing shell companies, many of which in turn are owned by other shell companies, Tobon said.

“It is a part of every single significant investigation that we have ongoing right now,” he added.

But the threshold for reporting cash purchases is so low in the two markets that it will include many mainstream buyers, said Terrence Oved, lawyer with Manhattan real estate and commercial litigation firm Oved & Oved LLP.

“You’re going to get a lot of small fish caught up in this net,” he said.

The temporary orders begin on March 1 and last 180 days, and Oved expects a surge in deals to be completed March. Buyers may turn to other major metropolitan markets such as Los Angeles, as well, he added.

In November 2015, the most recent month for which data is available, 17 percent of the 82,595 all-cash purchases of single family homes and condos went to buyers with an “LLC” in the name, according to the housing data company RealtyTrac, indicating they were purchased by companies. Altogether, a third of home purchases in the United States since 2011 were all-cash.

Meanwhile, there were about $104 billion in transactions involving foreign investors in the U.S. real estate market between April 2014 and March 2015. More than half the buyers in those deals were from China, Canada, India, Mexico, and the United Kingdom, and the majority of transactions involving overseas buyers were in cash, said Deborah Friedman, who works in the FBI’s money laundering intelligence unit, in September.

Those purchases were concentrated in Florida, Texas, Arizona and California, she said.

The Patriot Act of 2001 required the Treasury to either issue rules on anti-money laundering controls and reporting of suspicious activity by real estate professionals or grant an exemption. The exemption has been in place now for more than a decade.

Your Threat Score, Yup, Yours

The new way police are surveilling you: Calculating your threat ‘score’

While officers raced to a recent 911 call about a man threatening his ex-girlfriend, a police operator in headquarters consulted software that scored the suspect’s potential for violence the way a bank might run a credit report.

The program scoured billions of data points, including arrest reports, property records, commercial databases, deep Web searches and the man’s social- media postings. It calculated his threat level as the highest of three color-coded scores: a bright red warning.

The man had a firearm conviction and gang associations, so out of caution police called a negotiator. The suspect surrendered, and police said the intelligence helped them make the right call — it turned out he had a gun.

As a national debate has played out over mass surveillance by the National Security Agency, a new generation of technology such as the Beware software being used in Fresno has given local law enforcement officers unprecedented power to peer into the lives of citizens.

Police officials say such tools can provide critical information that can help uncover terrorists or thwart mass shootings, ensure the safety of officers and the public, find suspects, and crack open cases. They say that last year’s attacks in Paris and San Bernardino, Calif., have only underscored the need for such measures.

But the powerful systems also have become flash points for civil libertarians and activists, who say they represent a troubling intrusion on privacy, have been deployed with little public oversight and have potential for abuse or error. Some say laws are needed to protect the public.

In many instances, people have been unaware that the police around them are sweeping up information, and that has spawned controversy. Planes outfitted with cameras filmed protests and unrest in Baltimore and Ferguson, Mo. For years, dozens of departments used devices that can hoover up all cellphone data in an area without search warrants. Authorities in Oregon are facing a federal probe after using social media-monitoring software to keep tabs on Black Lives Matter hashtags.

“This is something that’s been building since September 11,” said Jennifer Lynch, a senior staff attorney at the Electronic Frontier Foundation. “First funding went to the military to develop this technology, and now it has come back to domestic law enforcement. It’s the perfect storm of cheaper and easier-to-use technologies and money from state and federal governments to purchase it.”

Few departments will discuss how — or sometimes if — they are using these tools, but the Fresno police offered a rare glimpse inside a cutting-edge $600,000 nerve center, even as a debate raged in the city over its technology.

An arsenal of high-tech tools

Fresno’s Real Time Crime Center is the type of facility that has become the model for high-tech policing nationwide. Similar centers have opened in New York, Houston and Seattle over the past decade.

Fresno’s futuristic control room, which operates around the clock, sits deep in its headquarters and brings together a handful of technologies that allow the department to see, analyze and respond to incidents as they unfold across this city of more than 500,000 in the San Joaquin Valley.

On a recent Monday afternoon, the center was a hive of activity. The police radio crackled over loudspeakers — “subject armed with steel rod” — as five operators sat behind banks of screens dialing up a wealth of information to help units respond to the more than 1,200 911 calls the department receives every day.

On 57 monitors that cover the walls of the center, operators zoomed and panned an array of roughly 200 police cameras perched across the city. They could dial up 800 more feeds from the city’s schools and traffic cameras, and they soon hope to add 400 more streams from cameras worn on officers’ bodies and from thousands from local businesses that have surveillance systems.

The cameras were only one tool at the ready. Officers could trawl a private database that has recorded more than 2 billion scans of vehicle licenses plates and locations nationwide. If gunshots were fired, a system called ShotSpotter could triangulate the location using microphones strung around the city. Another program, called Media Sonar, crawled social media looking for illicit activity. Police used it to monitor individuals, threats to schools and hashtags related to gangs.

Fresno police said having the ability to access all that information in real time is crucial to solving crimes.

They recently used the cameras to track a robbery suspect as he fled a business and then jumped into a canal to hide. He was quickly apprehended.

The license plate database was instrumental in solving a September murder case, in which police had a description of a suspect’s vehicle and three numbers from the license plate.

But perhaps the most controversial and revealing technology is the threat-scoring software Beware. Fresno is one of the first departments in the nation to test the program.

As officers respond to calls, Beware automatically runs the address. The searches return the names of residents and scans them against a range of publicly available data to generate a color-coded threat level for each person or address: green, yellow or red.

Exactly how Beware calculates threat scores is something that its maker, Intrado, considers a trade secret, so it is unclear how much weight is given to a misdemeanor, felony or threatening comment on Facebook. However, the program flags issues and provides a report to the user.

In promotional materials, Intrado writes that Beware could reveal that the resident of a particular address was a war veteran suffering from post-traumatic stress disorder, had criminal convictions for assault and had posted worrisome messages about his battle experiences on social media. The “big data” that has transformed marketing and other industries has now come to law enforcement.

Fresno Police Chief Jerry Dyer said officers are often working on scant or even inaccurate information when they respond to calls, so Beware and the Real Time Crime Center give them a sense of what may be behind the next door.

“Our officers are expected to know the unknown and see the unseen,” Dyer said. “They are making split-second decisions based on limited facts. The more you can provide in terms of intelligence and video, the more safely you can respond to calls.”

But some in Fresno say the power and the sheer concentration of surveillance in the Real Time Crime Center is troubling. The concerns have been raised elsewhere as well — last year, Oakland city officials scaled back plans for such a center after residents protested, citing privacy concerns.

Rob Nabarro, a Fresno civil rights lawyer, said he is particularly concerned about Beware. He said outsourcing decisions about the threat posed by an individual to software is a problem waiting to happen.

Nabarro said the fact that only Intrado — not the police or the public — knows how Beware tallies its scores is disconcerting. He also worries that the system might mistakenly increase someone’s threat level by misinterpreting innocuous activity on social media, like criticizing the police, and trigger a heavier response by officers.

“It’s a very unrefined, gross technique,” Nabarro said of Beware’s color-coded levels. “A police call is something that can be very dangerous for a citizen.”

Dyer said such concerns are overblown, saying the scores don’t trigger a particular police response. He said operators use them as guides to delve more deeply into someone’s background, looking for information that might be relevant to an officer on scene. He said officers on the street never see the scores.

Still, Nabarro is not the only one worried.

The Fresno City Council called a hearing on Beware in November after constituents raised concerns. Once council member referred to a local media report saying that a woman’s threat level was elevated because she was tweeting about a card game titled “Rage,” which could be a keyword in Beware’s assessment of social media.

Councilman Clinton J. Olivier, a libertarian-leaning Republican, said Beware was like something out of a dystopian science fiction novel and asked Dyer a simple question: “Could you run my threat level now?”

Dyer agreed. The scan returned Olivier as a green, but his home came back as a yellow, possibly because of someone who previously lived at his address, a police official said.

“Even though it’s not me that’s the yellow guy, your officers are going to treat whoever comes out of that house in his boxer shorts as the yellow guy,” Olivier said. “That may not be fair to me.”

He added later: “[Beware] has failed right here with a council member as the example.”

An Intrado representative responded to an interview request seeking more information about how Beware works by sending a short statement. It read in part: “Beware works to quickly provide [officers] with commercially available, public information that may be relevant to the situation and may give them a greater level of awareness.”

Calls for ‘meaningful debate’

Similar debates over police surveillance have been playing out across the country, as new technologies have proliferated and law enforcement use has exploded.

The number of local police departments that employ some type of technological surveillance increased from 20 percent in 1997 to more than 90 percent in 2013, according to the latest information from the Bureau of Justice Statistics. The most common forms of surveillance are cameras and automated license plate readers, but the use of handheld biometric scanners, social media monitoring software, devices that collect cellphone data and drones is increasing.

Locally, the American Civil Liberties Union reports that police in the District, Baltimore, and Montgomery and Fairfax counties have cellphone-data collectors, called cell site simulators or StingRays. D.C. police are also using ShotSpotter and license plate readers.

The surveillance creates vast amounts of data, which is increasingly pooled in local, regional and national databases. The largest such project is the FBI’s $1 billion Next Generation Identification project, which is creating a trove of fingerprints, iris scans, data from facial recognition software and other sources that aid local departments in identifying suspects.

Law enforcement officials say such tools allow them to do more with less, and they have credited the technology with providing breaks in many cases. Virginia State Police found the man who killed a TV news crew during a live broadcast last year after his license plate was captured by a reader.

Cell site simulators, which mimic a cellphone tower and scoop up data on all cellphones in an area, have been instrumental in finding kidnappers, fugitives and people who are suicidal, law enforcement officials said.

But those benefits have sometimes come with a cost to privacy. Law enforcement used cell site simulators for years without getting a judge’s explicit consent. But following criticism by the ACLU and other groups, the Justice Department announced last September that it would require all federal agencies to get a search warrant.

The fact that public discussion of surveillance technologies is occurring after they are in use is backward, said Matt Cagle, an attorney for the ACLU of Northern California.

“We think that whenever these surveillance technologies are on the table, there needs to be a meaningful debate,” Cagle said. “There needs to be safeguards and oversight.”

After the contentious hearing before the Fresno City Council on Beware, Dyer said he now wants to make changes to address residents’ concerns. The police chief said he is working with Intrado to turn off Beware’s color-coded rating system and possibly the social media monitoring.

“There’s a balancing act,” Dyer said.

One More Transferred from Gitmo, Bigger Implications

The Department of Defense announces transfer of a Guantanamo detainee to Saudi Arabia. Leaves 103 detainees left at Gitmo. This transfer was approved in October.

General John Kelly, commander of U.S. Southern Command announced 150 Islamic militants in the Caribbean. A big issue that Gitmo does monitor but…..

Obama to make good on Guantanamo pledge: White House chief of staff

Reuters: President Barack Obama will make good on a promise to close the U.S. naval prison in Guantanamo Bay, Cuba, his chief of staff Denis McDonough said on “Fox News Sunday.”

Obama will first present a long-awaited plan to Congress about how to close the facility, and seek its approval, McDonough said in an interview. If Congress fails to act, the White House will determine what steps to take, he said.

“He feels an obligation to the next president. He will fix this so that they don’t have to be confronted with the same set of challenges,” McDonough said.

Obama pledged during the 2008 presidential election campaign that he would close the military prison, which housed foreign terrorism suspects after the Sept. 11, 2001, attacks on the United States.

That pledge, still unfilled, has been a feature of his annual State of the Union addresses to the nation ever since.

Obama has said the facility has been used as a recruiting tool in propaganda from groups like al Qaeda, and also is far too costly to maintain. There are 104 detainees left at the prison.

Where possible, his administration has transferred detainees to other countries. But there is a small number of detainees who the administration says it would like to detain in a U.S. facility for national security reasons.

Congress has explicitly banned the transfer of detainees to the United States.

McDonough declined to say whether Obama would close the prison using his own executive powers if Congress rejects his plan.

“I’m not an if-then guy,” he said.

NYT: Mohammad al Rahman al Shumrani is a 40-year-old citizen of Saudi Arabia. As of January 2010, the Guantánamo Review Task Force had recommended him for continued detention. A parole-like Periodic Review Board later recommended him for transfer. As of Jan. 11, 2016, he has been held at Guantánamo for 14 years.

JTF-GTMO Assessment 12 pages 

So what are the options for Barack Obama on those Gitmo detainees that no country will take in a transfer? Enough money and politics will force any country being strong-armed by the White House to take the worst of the worst. If not, there are other options. Obama can use his pen and force a Federal prison in the U.S. to take the remaining detainees or he can transfer the jihadis to another U.S. held prison facility/detention center in a foreign country.
Could they be transferred to the control of the United Nations and be placed in a U.N. prison facility?
If he is successful in closing the detention facility what will happen to it? Could Obama cancel the lease with Cuba? Yes. Could the facility be transferred to Cuba and then handed over to Iran, Russia or China? Yes.
What is worse, Obama is bent on taking robust action on Gitmo such that the next administration cannot restore it after it is closed. This leaves few options for the next president or does it?
At issue is fundamentally, Naval Station Guantanamo Bay is a full service military base that provides regional security to the Caribbean and monitors activity in Central and South America. It also provides the Department of Homeland Security with assistance in migrant operations.

The base hosts numerous tenant commands including the Southern Command Joint Task Force-Guantanamo, Joint Task Force Guantanamo, US Naval Hospital and Branch Dental Clinic.

Other detachments located at the base are: Personnel Support Activity, Naval Atlantic Meteorology and Oceanography Command, Naval Media Center, Naval Communications Station, Department of Defense Dependent Schools, Navy Brig, and Fleet and Industrial Supply Center.

NAVSTA GTMO garrison facilities

The bay area is divided into two parts known as the outer and inner harbours. The inner harbour includes commercial ports while the outer harbour accommodates naval station and the main anchorage space. Pier and wharf facilities are located at the small inlets located between Corinaso Point and Deer Point.

Air facilities

NAVSTA GTMO had two airfields namely Leeward Point Field and McCalla Airfield. The operations at McCalla Airfield were ceased in 1976. The Leeward Point Field is the only active military airfield in the base. It has a single runway (10/28) measuring 2,438m x 61m and surfaced with asphalt.

Other base facilities and services

The naval station has four wind turbines generating 3,800kW electricity, enough to fulfil 25% its power requirements. A desalination plant capable of producing 2.25 million gallons of fresh water a day is attached to the base. The plant also produces a combined 15,000kw of electricity through its two turbine generators.

Guantanamo has had operations that includes air fields with aircraft including F8U Crusaders and A4D Skyhawks. It was also an anti-submarine center and a training center. It can handle and has handled 50 warships.
Further, the Haitian crisis , the Balkan crisis and the famous Cuban missile crisis.
Imagine a foreign government in control of U.S. naval infrastructure and technology. Just imagine.

Facts of the Guzman Re-Capture, Warning Graphic

Sean Penn is gonna make a movie? He used a Mexican actress as the go-between? Signals intelligence and cell (burn) phone tracking? Yes all of those but much more.

The region where el Chapo Guzman lives is well protected by all other residents in the area, they are on the Guzman payroll. We have known for years his location, at issue was crafting a well organized and well trained military style operation to re-capture him. There is some chatter that finally too, Mexico will extradite Guzman to the United States, but that could take at least a year. What is worse, Guzman was not taken to another prison with higher security but rather back to the very prison from which he escaped. What????

So, what role did the United States play in this recent capture of Guzman? A BIG one.

JSOC’s Secretive Delta Force Operators on the Ground for El Chapo Capture

Delta Force Operators on the Ground for El Chapo Capture

Murphy/SofRep: Mexico’s most notorious drug lord, Joaquín Guzmán Loera, better known as El Chapo, was recaptured following an intense firefight between Mexican Marines and Chapo’s goons in Sinaloa, Mexico, last Friday. Although Mexican officials claimed that the entire operation to recapture El Chapo after he escaped from prison for the second time was planned and executed by Mexico, multiple sources report to SOFREP that American law enforcement officers and JSOC operators were involved in the mission.

The operation, dubbed “Black Swan” by the Mexican government, was actually targeting Chapo’s lead sicario (assassin) but came across the cartel leader by chance. The Mexican Marines stormed the house, and in the ensuing firefight five cartel gunmen were killed and six were injured. One Marine was also injured. During the firefight, Chapo escaped through a series of tunnels and then tried to flee in a stolen vehicle. Federal agents caught sight of him and arrested him on the spot. According to one account, the arresting agents had not even been aware of the larger mission being carried out in the area by Mexican Marines. Arresting Chapo was simply a chance encounter, a stroke of good luck.

Rumors of American special operations personnel roaming around the badlands of Mexico have been floating around for well over a decade at this point, but the idea of bearded, ball cap- and Oakley-wearing American soldiers south of the border has been more fiction than fact. JSOC maintained a small analysis cell in Mexico, but the Mexican government has been extremely wary of an American military presence on the ground. Much of this has to do with fears of neocolonialism, as well as Latin American machismo—insecurity over the fact that Mexico cannot manage its own internal affairs.

chaporaid2

(Pics of the recent raid that resulted in the capture of El Chapo)

While America’s so-called “war on drugs” is perhaps at an all-time low socially and politically, with our focus on the Middle East, the capture of El Chapo is still a tactical win for the United States, even if it only gets us incrementally closer to securing the rule of law in Mexico.

In the lead for the capture were the Mexican Marines, who are the go-to preferred force for counter-drug cartel operations in a country where public officials are often hopelessly corrupt. It is interesting to see how, around 2006 or 2007, the Mexican Marines suddenly became very effective at direct-action (DA) raids. Such raids were responsible for capturing and killing high-value targets (HVTs), causing speculation that the Marines were receiving a little help from their North American neighbors. America has also leveraged its significant signals intelligence (SIGINT) capabilities to help the Mexican authorities track down drug cartel leaders.

chaporaid1

(Another Chapo goon killed in the raid that resulted in his capture)

In regards to the latest El Chapo capture, SOFREP has been told that it was actually the U.S. Marshals who had an important role in tracking down the drug lord. Also on the ground was the U.S. Army’s elite counterterrorism unit, Delta Force. Operators from Delta served as tactical advisors but did not directly participate in the operation.

This type of arrangement is hardly unprecedented, as Delta also worked in the shadows during the search for, and eventual killing of, Pablo Escabar in Colombia. They’ve also served in advisory capacities during hostage-rescue missions in places as diverse as Sudan and Peru. Delta Force has also remained behind the scenes in the capture of other HVTs, from Manuel Noriega in Panama during the 1989 invasion, to the killing of Uday and Qusay Hussein in Iraq in 2003. Also worth noting is the unit’s role in tracking down and arresting Bosnian war criminals in the 1990s.

Although Delta had some level of involvement in the operation, their presence is probably less interesting than many would assume.  Law enforcement agencies often request the presence of Delta operators as advisors to sensitive operations.  These operators are often there putting in face time to appease the request of a federal agency, but may have little if any actual participation in the planning and execution of events.  Such was the case when Delta was asked to consult on the Waco stand-off between the ATF, FBI, and the Branch Davidians in 1993.  Law enforcement agencies are said to regard the presence of a JSOC operator as a sort of lucky talisman.

The good news is that it is now unlikely that Chapo will be escaping from prison a third time as the Mexican government is signaling that he will be extradited to the United States to face prosecution.  When the black Chinook comes for Chapo, we will know that he will finally face the justice that he has long evaded.

 

 

 

 

Cartel Leader Guzman Recaptured in Shootout

The Mexican Navy said in a statement that marines acting on a tip raided a home in the town of Los Mochis before dawn. They were fired on from inside the structure. Five suspects were killed and six others arrested. The marine’s injuries were not life threatening.

At the home marines seized two armoured vehicles, eight long guns, one handgun and a rocket-propelled grenade launcher.

BREAKING NEWS: Joaquin ‘Chapo’ Guzman recaptured in Mexico

FoxLatino: Mexican President Enrique Peña Nieto confirmed on Friday that authorities have captured fugitive drug lord Joaquín “El Chapo” Guzman  in his hometown of Sinaloa.

“Mission accomplished: we have it,” Peña Nieto tweeted Friday.” I want to inform Mexicans Joaquin Guzman Loera has been arrested.”

The arrest of Guzmán was followed by a raid at a home in the town of Los Mochis, before dawn by Mexican marines, the AP is reporting. They were fired on from inside the structure. Five suspects were killed and six others arrested, the AP is reporting. The marine’s injuries were not life threatening.

It is unclear if the this was connected to the arrest.

At the home marines seized two armored vehicles, eight long guns, one handgun and a rocket-propelled grenade launcher.

The statement said they believed a regional commander for a criminal organization was present, but escaped.

The area has been the site of other military operations in recent months as the government continues to search for Joaquin “El Chapo” Guzman, leader of the Sinaloa cartel.

Guzmán fled in July through a mile-long tunnel dug from what authorities say was a building especially set up for the prison break in plain sight of the prison. The tunnel was equipped with a ventilation system and even a customized motorcycle most likely used to remove the dirt while digging towards the shower area of the drug lord’s prison cell.