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It did not identify those responsible, but said more attacks tied to the upcoming Olympics were likely.
In similar past attacks, hackers tried to obtain passwords and financial data.
‘Casting net wide’
McAfee said a number of groups associated with the Olympics had received malicious emails – including several affiliated with ice hockey.
“The majority of these organisations had some association with the Olympics, either in providing infrastructure or in a supporting role,” the security firm said.
“The attackers appear to be casting a wide net with this campaign.”
The emails were sent from a Singapore IP address and told readers to open a text document in Korean.
McAfee said the hackers were trying to trick recipients into believing the emails had come from South Korea’s National Counter-Terrorism Center – which at the time was in the process of conducting anti-terror drills in the region.
In some cases the hackers used a technique in known as steganography which hides malware in text and images.
It uses a previously unseen form of malware designed to hand control of the victim’s machine over to the attackers. Among those sent the messages are individuals associated with the ice hockey tournament at the Games. The attack has been dubbed ‘Operation PowerShell Olympics’ by the researchers at McAfee Labs, who uncovered it taking place in late December.
The lure document used in the cyber-attacks targeting the South Korea Winter Olympics.
Image: McAfee Labs
During the course of the investigation, researchers discovered a cached Apache server log which showed an IP address from South Korea connecting to the specific URL paths contained in the PowerShell implants, indicating that the intended targets were likely to have been infected.
Further investigation revealed the IP address from the PowerShell implant was connected to an anonymous domain provider based in Costa Rica, with the attacker using this domain to link up to the South Korean Ministry of Agriculture and Forestry, which the attacker has somehow managed to use parts of to carry out the attack.
Researchers are uncertain how many have been infected by the attack, but the campaign is thought to have targeted a wide range of South Korean organisations in the run up to the Winter Olympics. In similar campaigns in the past, victims were targeted for their passwords and financial information.
The phishing document was created on December 22, but rather than containing macros, it uses OLE (Objective Linking and Embedding) streams to carry out the attack. The document has been created by the same author, ‘John’, who created the malicious PowerShell script.
However, despite some evidence about how the attacks took place, researchers haven’t been able to identify the perpetrator — but they do note that whoever is behind the campaign must be fluent in the Korean language and the motive is to gather intelligence about organisations involved in the South Korea-hosted Winter Olympics.
“Technical details alone are often not enough to determine attribution. We are able to ascertain that the attackers have been trained in Korean language to ensure that the targets open the attachment, and the objective seems to be to gather information on the planning, direction and infrastructure related to the Olympics,” said Sherstobitoff.
To avoid falling victim to such attacks — including fileless malware distributed as part of Operation Powershell Olympics — organisations should educate their employees to be mindful of suspicious emails and unexpected attachments. More here from zdnet
Primer: April – August 1948: More than 700,000 Palestine refugees are displaced as a result of the Arab-Israeli War. Per the United Nations Relief and Works Agency website. So, we have a generational refugee condition, where they are refugees in essentially their own land…let that sink in.
UNRWA human development and humanitarian services encompass primary and vocational education, primary health care, relief and social services, infrastructure and camp improvement, microfinance and emergency response, including in situations of armed conflict.
Bleh…..after 70 years….it still has to be funded? Did you catch that set of words ‘armed conflict’? Even the left leaning Huffington Post agrees, the Palestinians DON’T want peace.
The Palestinians not only have rejected one offer after another for a peaceful settlement in the past nearly 70 years, but also, tragically, their misguided actions now make any chance of an accord going forward still less likely.
Friday’s UN Security Council resolution is a case in point.
If the goal was to increase the chance of Palestinian statehood alongside Israel (and not in its place!), it was an abysmal failure, despite the lopsided vote. Those diplomats who rushed to applaud the outcome – and I’ll set aside thuggish countries like Venezuela that don’t bring a shred of good will to the UN table – should think twice about what they actually achieved.
If they wanted to excoriate Israel, a longstanding vocation of too many UN member states, then they can thump their chests, even if, alas, they habitually reserve such scrutiny for the only democratic nation in the Middle East. But for those truly committed to advancing prospects for peace, they took a big step backwards, once again falling into the Palestinian trap.
*** The Palestinians have a capital it is called Ramallah.
So, when the United States suspended funding to UNRWA….it was not all the funding, don’t be fooled. The United States gives an estimated $390,000,000 to UNRWA each year. Add that to the collection of other nations’ contributions and UNRWA is hardly out of business.
The United States administration froze a $125 million grant to the United Nations Relief and Works Agency (UNRWA), the UN’s agency for “Palestinian refugees”, which was supposed to be delivered on January 1, Channel 10 News reported on Friday, citing three Western diplomats.
The amount frozen is one-third of the annual funding the United States provides the organization, according to the report.
The three diplomats, who asked to remain anonymous because of the political sensitivity of the issue, told Channel 10 the grant had been frozen until the end of the reexamination of U.S. aid to the Palestinians, which began in recent days. According to the diplomats, officials in the administration have informed UN officials in the past two days that President Donald Trump is considering cutting this amount completely and could even increase the cut to $180 million, which would be half the total U.S. funding for UNRWA.
The cutting in the UN funding to UNRWA is a U.S. sanction against the organization, which has come under strong criticized from both the United States and Israel, as well as against the Palestinian Arabs, in an attempt to pressure them to renew peace talks with Israel.
The meeting followed Trump’s tweets earlier this week in which he expressed doubt over the usefulness of American aid to the Palestinians, given their refusal to resume peace talks with Israel.
The United States is the largest single donor to UNRWA, providing approximately a fourth of the organization’s budget.
Reports in Israel on Thursday indicated that the Israeli Foreign Ministry is opposed to Trump’s planned cut in the aid to UNRWA, but on Friday Jewish Home chairman Naftali Bennett said that cutting aid to UNRWA is the correct move.
For years, UNRWA has been a target for criticism in light of Hamas’s activity in its educational institutions and the use of its facilities by Palestinian Arab terrorist organizations in Gaza.
UNRWA was documented storing Hamas rockets and weapons “designed to kill Israeli citizens” in its schools, a fact which the UNRWA chief admitted himself.
If you think you can describe relationships and motivations globally and the connective tissue into Washington DC….you may need to think again.
This particular legal case decided yesterday has the makings of an HBO television documentary that includes past and present political power-brokers. We have Trump, Giuliani, Flynn, Obama, FBI, Justice, Iran, Turkey, lobbyists and even some violence.
What did the Obama administration know and why did they know it, then what?
Primer:
May 2017: MIAMI — President Donald Trump’s longtime Florida lobbyist, Brian Ballard, has expanded his practice globally and just signed a $1.5 million contract with the government of Turkey, which will be represented by the firm’s new big hire, former Florida Congressman Robert Wexler.
Ballard Partners’ Turkey contract, inked Friday, comes on the heels of two other international clients signed by the firm: A March 6 $900,000 contract with the Dominican Republic and an April 1 $240,000 contract with the Socialist Party of Albania, the ruling party in the Balkan nation. More here.
For a current list of clients for Ballard Partners, go here.
***
Just the facts and the case of GOLD below, while several are still at large.
Enter the good guys, outside of government who perform remarkable and respected investigative work.
SchanzerYesterday, Turkish banker Mehmet Hakan Atilla was found guilty in a Manhattan courtroom for a range of financial crimes. His dramatic trial revealed that tens of billions in dollars and gold moved from Turkey to Iran through a complex network of businesses, banks, and front companies.
The trial was a long time coming. In late October of 2016, Justice Department officials paid a visit to the Foundation for Defense of Democracies, the Washington-based think tank where I serve as senior vice president. They wanted to talk about Reza Zarrab. A dual Iranian-Turkish national, Zarrab was the swashbuckling gold trader who had helped Iran evade sanctions with the help of Turkish banks in 2013 and 2014, yielding Iran an estimated $13 billion at the height of the efforts to thwart Tehran’s nuclear ambitions. A leaked report by prosecutors in Istanbul in March 2014 suggested that Zarrab spearheaded a second sanctions-busting scheme involving fake invoices for billions more in fictitious humanitarian shipments to Iran that were processed through Turkish banks.
At FDD, we’d spent considerable time digging into Zarrab’s activities. Our think tank already had an established track record of identifying and exposing Iran’s malign activities. We had also just launched a new program to explore Turkey’s recent drift into Islamist authoritarianism. The more we investigated, the more we realized that Zarrab’s schemes, which could have helped Iran pocket more than $100 billion, rank among the largest sanctions evasion episode in modern history.Despite the headlines generated by the gold trade and leaked report, the Turkish government insisted that everything was above board. The Obama administration seemed to echo this sentiment, saying that the gold trade had slipped through a legal loophole (a loophole the White House inexplicably left open for an additional six months, even after the problem was flagged). We soon learned Ankara’s political motivations: The gold trade helped boost Turkey’s flagging export numbers at a moment when those numbers might have hurt President Recep Tayyip Erdogan’s chances for reelection. Zarrab, who became fabulously wealthy by taking a percentage from every transaction (he later estimated his take at $150 million), even received a reward for his efforts from a Turkish trade association in 2015, with Erdogan applauding from the audience.
But it all came to an abrupt halt last March, when Zarrab inexplicably brought his family to America for a vacation at Disney World. With the 2015 nuclear deal in effect, he may have believed that the sanctions laws he violated before the deal were no longer in force. Some suggest that Zarrab was trying to flee Iranian justice, particularly as the regime came to grasp just how much he skimmed off the top. Either way, when he arrived in Florida, U.S. authorities arrested him for engaging in conspiracies to violate sanctions, commit bank fraud, and launder money.
It was about time. For three years, my colleagues and I had been briefing the Treasury Department, the State Department, and Congressional offices. We had tracked the export data (which, remarkably, Turkey did not hide), showing an astronomical spike in Turkish gold exports. We identified the companies and players, with the help of the 2014 prosecutor’s report. It was painstaking work, but it was all out there in open sources for a think tank like ours to document.Yet, it was an inconvenient moment to reveal unsavory truths about Iran, amid the push for the nuclear agreement. Nor did anyone, Democrat or Republican, want to touch the third rail of relations with Turkey, a NATO ally that had recently begun backing terrorist groups like Hamas (which still maintains a disturbing presence in Turkey) and a range of Sunni jihadi groups fighting the Assad regime in Syria (including al-Qaeda’s affiliate, according to senior U.S. government officials we interviewed). Stable allies in the Muslim world were scarce, and decision-makers seemed reluctant to take any chances with Ankara.
It may also have been difficult for officials to hear that the sanctions tools we have in place to prevent bad actors from moving money are just that—tools. Without intense vigilance and enforcement, there is ample opportunity for Iran and other sanctioned countries to find workarounds. But if we’re going to follow the money, we’d better be prepared to follow it to the most inconvenient places.
That’s why it was a pleasant surprise when the Justice Department came knocking on FDD’s door. It had never dawned on us that they might be interested in our work. But they were. They wanted to see what we already knew of the complex web of companies, networks, and schemes, that Zarrab employed to move money out of Turkey and into Iran. After all, even with the vast evidence they had collected, our research predated their investigation.In the weeks and months that followed, one visit begat another. Both I and Mark Dubowitz, FDD’s CEO, were asked by the assistant U.S. attorney to serve as an expert witness for the prosecution. We pored over invoices tracking the transactions that turned gold into Iranian cash. We analyzed spreadsheets detailing the dizzying trail of sales and purchases designed to obfuscate the illicit nature of the transactions. There were also photos, including one of Zarrab himself standing next to a six-foot high tower of plastic-wrapped bricks of $100 bills. The documents were privileged at the time, but will soon be made public now that the trial is over. The documents are damning, with textbook examples of money-laundering techniques like over-invoicing (charging significantly more for a given product to yield more margin) and circular invoicing (making multiple transactions involving the same funds or goods to hide a money trail or even benefit from arbitrage). The figures themselves were astounding: hundreds of millions of dollars in transactions in every stack of papers we viewed.
The case took a wild turn on March 28, when, Justice Department officials from the Southern District of New York arrested Atilla, the deputy CEO and general manager at Turkey’s state-owned Halkbank. They accused him of conspiring with Zarrab to launder hundreds of millions of dollars through the U.S. financial system on behalf of Iran. It was Halkbank that held one of the oil escrow accounts for Iran. The escrow accounts constituted a creative method of withholding petrodollars from Iran, as mandated by the Iran Threat Reduction and Syria Human Rights Act (ITRA) of 2012. In brazen defiance of U.S. sanctions, Halkbank released those funds to buy gold, which was then shipped off to Iran. Halkbank was also accused of helping to process Zarrab’s aforementioned fictitious invoices, the ones first exposed in the 2014 prosecutor’s report.Uranium or gold
Halkbank was clearly in trouble. In September, it hired Ballard Partners, a U.S. lobbying firm that already represented the Turkish government, for a whopping $1.5 million. Separately, Zarrab hired former New York Mayor Rudy Giuliani and former Attorney General Michael Mukasey in an attempt to derail the proceedings. But the real drama came in late November when Zarrab pled out, making him a witness for the prosecution. Atilla would stand trial alone.
That’s when the Turkish government got angry. They took their anger out on me and Mark Dubowitz, who testified on the first day of Atilla trial about the Iran sanctions architecture. The state media called us terrorists, alleging we were affiliated with Turkish cleric Fethullah Gulen’s network, the group Erdogan blamed for the attempted coup in July of last year. Ankara also issued an arrest warrant for my colleague Aykan Erdemir, a former Turkish parliamentarian. Turkish authorities froze his assets and even seized the apartment that his grandfather had bequeathed to the family. They said he “destroyed paperwork relating to state security” and “stole documents with the intention of using them abroad.” They also falsely identified him as being on the witness list.
But Ankara could not stop Zarrab from delivering seven days of sensational testimony. On day one, he appeared in court wearing a beige prison jumpsuit; for the remainder, he was allowed to wear a blazer. He was a natural in front of the jury, using diagrams to coolly explain how he orchestrated the scheme. He looked like a business school professor teaching a class on corruption.Here’s what Zarrab testified: The scheme began in 2010, when Iran began to feel the squeeze from U.S. sanctions for its nuclear drive. Zarrab said that around 2012 the Iranian government gave him explicit directions to conduct these illegal transactions. Turkish officials were also on the take, Zarrab said, with its economy minister allegedly taking $50 million in bribes to help facilitate the scheme. He said other Turkish officials were on the take, too—many of whom were in Erdogan’s inner circle. According to Zarrab, other Turkish banks may have been involved at the government’s behest. All this might explain why the Turkish government, even after the prosecutor’s report was leaked in 2014, killed all inquiry into the Zarrab scheme.
Testimony from David Cohen and Adam Szubin, two former Treasury Department undersecretaries would also reveal that Halkbank officials repeatedly reassured them their gold-trader clients, including Zarrab, were in compliance with U.S. sanctions against Iran. (Zarrab testified that he continued his operations up until his arrest in March 2016, which meant that Halkbank would have been lying to U.S. officials.)
In the end, the trial ran long. With the judge calling for the prosecution to wrap things up quickly, I managed to avoid taking the stand. Atilla testified in a last-ditch self-defense, and the jury began its deliberations on December 20.Yesterday, after spending 11 days away for Christmas and New Years, the jury returned to deliberate again, and after only a few hours delivered their verdict: guilty on five out of six counts. Atilla’s rap sheep now includes four conspiracy counts, including conspiracy to defraud the United States, plus one count of bank fraud. (He was acquitted for money laundering.)
All eyes are now on the United States government and whether it issues a fine against Halkbank, particularly now that it has proven in a court of law that the bank engaged in a massive, illegal financial scheme. French Bank BNP Paribas was fined $8.9 billion for far lesser transgressions in 2015, for its violations of sanctions against Sudan, Cuba, and Iran.
Fine or no fine, it’s hard to envision tranquil U.S.-Turkish relations going forward. Erdogan, who now rivals Russia’s Vladimir Putin in autocratic style, has already instructed his spokesman to decry the trial as a “plot” against Turkey, while slamming “the scandalous verdict of a scandalous case.”
Then there is the question of Iran. In all likelihood, Tehran probably gave little thought to the Atilla verdict, given its ongoing domestic turmoil. The people are calling for better economic conditions, and a foreign policy that doesn’t squander Iran’s wealth on adventurism outside the country’s borders. One can only guess that would include complex sanctions busting schemes to enable an illicit nuclear program.
And now that Zarrab has finally clarified a few things about the Iranian role in his scheme, one troubling question lingers: Why did the U.S. government continue to negotiate the nuclear deal with Iran in 2013 and 2014 while Treasury was warning Halkbank about enormous sanctions violations? We may never know. Then again, from the documents I viewed, I wouldn’t be surprised to see other sanctions busters come in the DOJ crosshairs—creating new and uncomfortable challenges for our existing alliances and diplomatic agreements. Perhaps other future indictments will tell us more.
It is argued that the Democrats want the illegals to stay in country due in part to gaining their vote. There is truth to that for sure, yet advocacy organizations raise a LOT of money which is in the end more important to the Democrat base for campaign contributions.
For a list of pro-amnesty groups covering all industry and social classifications, go here.
Perhaps as a reminder it is prudent to mention that Obama led the charge for clemency and pardons as noted here.
President Obama offered clemency to seven Iranians charged with violating U.S. trade sanctions against Iran as part of a historic prisoner agreement with Iran that freed four Americans Saturday, including Washington Post reporter Jason Rezaian.
The Iranians, six of whom are dual U.S.-Iranian citizens, were imprisoned or were pending trial in the United States. The U.S. government dismissed charges against 14 other Iranians, all outside the United States, after assessing that extradition requests were unlikely to be successful, according to a U.S. official. More here.
***
New York Gov. Andrew Cuomo mimicked California Gov. Jerry Brown’s approach to immigration, pardoning 18 convicted illegal immigrants who faced deportation.
Cuomo, a Democrat, praised himself on Twitter for his compassion Thursday before linking to a New York Times article supporting the move.
Escalating the state’s showdown with the Trump administration over illegal immigration, California Gov. Jerry Brown used a Christmas holiday tradition to grant pardons Saturday to two men who were on the verge of being deported for committing crimes while in the U.S.
Brown, pairing his state’s combative approach to federal immigration authorities with his belief in the power of redemption, characterized the pardons as acts of mercy.
The Democratic governor moved as federal officials in recent months have detained and deported immigrants with felony convictions that resulted in the loss of their legal residency status, including many with nonviolent offenses that occurred years ago.
With the pardons, the reason for applicants’ deportations may be eliminated, said attorney Kevin Lo of Asian Americans Advancing Justice-Asian Law Caucus, which represented some of the men in a recent class-action lawsuit.
The pardoned immigrants will still need to ask immigration courts to reopen their cases, he said.The detentions of felons has focused on specific ethnic groups in past months, including Cambodians and Vietnamese, according to immigration lawyers handling the cases. Cambodia has been reluctant to repatriate former felons, but acquiesced to accepting more after the State Department stopped issuing visas in September to a small group of top Cambodian officials and their families.
Two of Brown’s pardons are Northern California Cambodian men picked up in October in those immigration sweeps, Mony Neth of Modesto and Rottanak Kong of Davis.
Kong was convicted on felony joyriding in 2003 in Stanislaus County at age 25 and sentenced to a year in jail. Neth was convicted on a felony weapons charge with a gang enhancement and a misdemeanor charge of receiving stolen property with a value of $400 or less in 1995 in Stanislaus County.
Both men came to the United States as children after their families fled the Khmer Rouge regime, and neither has engaged in criminal activity since being released from prison.
Kong and Neth were scheduled to be deported Monday, but a federal judge issued a temporary restraining order last week in the lawsuit filed by Lo’s team, delaying their departure.
Neth, 42, was unexpectedly released from Rio Cosumnes Correctional Center on Friday, said his wife, Cat Khamvongsa, and is back home with his family – albeit with an ankle monitor.
“We gave him a big hug,” she said of herself and her 16-year-old daughter. “We’re so happy.”
In a phone interview Friday night while on his way to Costco, Neth said he was asleep Friday morning when a guard at the detention facility near Elk Grove called his name.
“I knew right then I was coming home,” Neth said. “It’s the best Christmas gift ever. … I don’t want to be anywhere else in the world.”
Despite the governor’s pardon, Neth still faces legal hurdles, Lo said.
SALEM, Ore. — An Oregon congressman who is one of a chief backer of legalized marijuana is urging a fight against U.S. Attorney General Jeff Session’s plan to open the gates to federal enforcement of laws against marijuana.
Rep. Earl Blumenauer, a Democrat who co-sponsored an amendment that prevents the Justice Department from interfering with states’ medical marijuana programs, called the move outrageous. He said anyone who cares about this issue should mobilize and push back strongly.
“One wonders if Trump was consulted—it is Jeff Sessions after all—because this would violate his campaign promise not to interfere with state marijuana laws,” he said in a prepared statement.
Oregon Gov. Kate Brown said rolling back federal marijuana policy, which has been largely non-interventionist, will disrupt the state’s economy. She said over 19,000 jobs have been created by the marijuana market in Oregon, which was the first state to decriminalize personal possession in 1973, legalized medical marijuana in 1998, and recreational use in 2014.
“The federal government must keep its promise to states that relied on its guidance,” she said in a statement. “My staff and state agencies … will fight to continue Oregon’s commitment to a safe and prosperous recreational marijuana market.”
WASHINGTON (Reuters) – The U.S. Justice Department on Thursday rescinded a policy begun under Democratic former President Barack Obama that had eased enforcement of federal marijuana laws, saying it would be up to federal prosecutors across the country to prioritize any such drug cases.
The Obama administration’s guidelines had “created a safe harbor for the marijuana industry to operate in these states and … there is a belief that that is inconsistent with what the federal law says,” a Justice Department official told reporters, referring to states that have legalized the drug.
Justice Department Issues Memo on Marijuana Enforcement
The Department of Justice today issued a memo on federal marijuana enforcement policy announcing a return to the rule of law and the rescission of previous guidance documents. Since the passage of the Controlled Substances Act (CSA) in 1970, Congress has generally prohibited the cultivation, distribution, and possession of marijuana.
In the memorandum, Attorney General Jeff Sessions directs all U.S. Attorneys to enforce the laws enacted by Congress and to follow well-established principles when pursuing prosecutions related to marijuana activities. This return to the rule of law is also a return of trust and local control to federal prosecutors who know where and how to deploy Justice Department resources most effectively to reduce violent crime, stem the tide of the drug crisis, and dismantle criminal gangs.
“It is the mission of the Department of Justice to enforce the laws of the United States, and the previous issuance of guidance undermines the rule of law and the ability of our local, state, tribal, and federal law enforcement partners to carry out this mission,” said Attorney General Jeff Sessions. “Therefore, today’s memo on federal marijuana enforcement simply directs all U.S. Attorneys to use previously established prosecutorial principles that provide them all the necessary tools to disrupt criminal organizations, tackle the growing drug crisis, and thwart violent crime across our country.”
