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Rick Perry: Corporate Espionage going by Russia and China

Rick Perry: Russian, Chinese Corporate Espionage ‘Shouldn’t Surprise Anybody’

Russia and China are engaging in underhanded business practices involving American oil and gas companies, according to Energy Secretary Rick Perry.

During an appearance on Fox Business Tuesday morning, Perry said it “shouldn’t surprise anybody that there is corporate espionage going on” in Russia and China, particularly with U.S. companies that are involved in hydraulic fracturing or fracking.

The secretary also addressed a recent column from Fox Business contributor James Freeman, which detailed a congressional investigation into allegations of a Russian effort to undermine and “suppress our domestic oil and gas industry, specifically hydraulic fracking,” according to a statement from House Science Committee Chairman Lamar Smith.

“When you think about Russia and China a lot of the businesses there have direct links back to their government,” Perry said. “So the idea that there are people trying to manipulate, to put propaganda out on a particular type of fuel, that doesn’t surprise me.”

He added that his case highlights the importance of cybersecurity.

“We need to be sophisticated when it comes to how we deal with Russia, how we deal with China,” he said. “Those are our competitors out there and we know that they may play with a different set of rules and we just need to be smart enough to identify.”

***

Rick Perry is more than right.

Primer 2013:

U.S. military operations, the security and the well being of U.S. military personnel, the effectiveness of
equipment, and readiness. China apparently uses these intrusions to fill gaps in its own research
programs, map future targets, gather intelligence on U.S. strategies and plans, enable future military
operations, shorten research and development (R&D) timelines for military technologies, and identify
vulnerabilities in U.S. systems and develop countermeasures.
China’s cyber espionage against U.S. commercial firms poses a significant threat to U.S. business
interests and competiveness in key industries.
General Keith Alexander, Director of the National Security Agency and commander of U.S. Cyber Command, assessed that the financial value of these losses is about $338 billion a year, including intellectual property losses and the down time to respond to penetrations, although not all those losses are to Chinese activity. Chinese entities engaging in cyber and other forms of economic espionage likely conclude that stealing intellectual property and proprietary information is much more cost
effective than investing in lengthy R&D programs.
***

Example/2015: WASHINGTON—Six Chinese citizens, including two professors who trained together at the University of Southern California, stole sensitive wireless technology from U.S. companies and spirited it back to China, the Justice Department charged.

Example/2014: In one of the most notable actions, Dongfan “Greg” Chung, a naturalized American citizen who worked on NASA’s space shuttle program, was convicted in 2009 after investigators found hundreds of thousands of sensitive papers under his California home. Prosecutors said he gave some of the documents to Chinese officials, revealing details of military and space-related technology. Chung, a former Boeing employee, was sentenced to more than 15 years in prison.

***

Chinese Industrial Espionage: Technology Acquisition and Military Modernization provides the most thorough and insightful review to date of the covert and overt mechanisms China uses to acquire foreign technology. Delving into China’s “elaborate, comprehensive system for spotting foreign technologies, acquiring them by every means imaginable and converting them into weapons and competitive goods,” the book concludes that “there is nothing like it in the world.” (2-3) The People’s Republic of China (PRC)  is implementing  “a deliberate, state-sponsored project to circumvent the costs of research, overcome cultural disadvantages and ‘leapfrog’ to the forefront by leveraging the creativity of other nations,” thereby achieving  “the greatest transfer of wealth in history.” (78, 216)

Although PRC espionage is global in scope, the most important target is the United States. Relying primarily on Chinese-language government and non-government sources, the coauthors intend to raise awareness of the threat nationally and alert decisionmakers to the gravity of the problem. Trained as Chinese linguists, with considerable experience dealing with Chinese affairs, they are uniquely qualified for the task. William C. Hannas has a Ph.D. in Asian languages, published two books on Asian orthography and served in various US government posts, including at the Joint Special Operations Command. James Mulvenon is a leading expert on Chinese cyber issues and has published widely on China’s military affairs and communist party-army relations. Senior analyst Anna B. Puglisi studied in Beijing and subsequently was a visiting scholar at Nankai University, where she studied China’s science and technology (S&T) policies and infrastructure development.

Download PDF for complete review. [PDF 264.1KB*]

412 Charged in $1.3 Billion in Opioid Schemes

U.S. charging 412 in health fraud, opioid schemes worth $1.3 billion

ChicagoTribune: More than 400 people have been charged with taking part in health care fraud and opioid scams that totaled $1.3 billion in false billing, Attorney General Jeff Sessions announced Thursday.

Sessions called the collective action the “largest health care fraud takedown operation in American history” and said it indicates that some doctors, nurses and pharmacists “have chosen to violate their oaths and put greed ahead of their patients.”

Among those charged are six Michigan doctors accused of a scheme to prescribe unnecessary opioids. A Florida rehab facility is alleged to have recruited addicts with gift cards and visits to strip clubs, leading to $58 million in false treatments and tests.

In the Northern District of Illinois, 15 people were charged in six cases involving an alleged $12.7 million in billing fraud of private insurers and government programs. At least two Chicago-area physicians, nurses, chiropractors and at least one physical therapist were among those indicted. In the Southern District of Illinois, five people were charged in separate alleged schemes to defraud Medicaid.

Related:

Officials said those charged in the schemes include more than 120 people involved in illegally prescribing and distributing narcotic painkillers. Such prescription opioids are behind the deadliest drug overdose epidemic in U.S. history. More than 52,000 Americans died of overdoses in 2015 — a record — and experts believe the numbers have continued to rise.

“In some cases, we had addicts packed into standing-room-only waiting rooms waiting for these prescriptions,” acting FBI director Andrew McCabe said. “They are a death sentence, plain and simple.”

Nearly 300 health care providers are being suspended or banned from participating in federal health care programs, Sessions said.

“They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves, often at the expense of taxpayers, but also feed addictions and cause addictions to start,” Sessions said.

Health care fraud sweeps like Thursday’s happen each year across the country, but law enforcement officials continue to grapple over the best way to fight the problem.

The people charged were illegally billing Medicare, Medicaid and the health insurance program that serves members of the armed forces, retired service members and their families, the Justice Department said. The allegations include claims that those charged billed the programs for unnecessary drugs that were never purchased or given to the patients.

Inside an FBI opioid task force:

How Hillary’s Lawyers and DoJ Obstructed on Emails

FBI document dump reveals secrets of Clinton probe as new director nominee faces Senate

FNC: Some 42 pages of highly redacted documents from the FBI’s criminal investigation into Hillary Clinton’s mishandling of highly classified materials paint a picture of a serious, but flawed investigation hindered by a lack of cooperation, according to a key watchdog group.

The materials, all part of the probe dubbed “Midyear Exam,” included several documents designated as “grand jury material,” indicating the potential seriousness of the investigation that would ultimately be ended by FBI director James Comey in July, then restarted for a brief period in October before being shut down for good.

One redacted exchange reveals a back and forth subpoena response to the FBI from one of Mrs. Clinton’s private attorneys, Katherine Turner, a partner at Washington DC powerhouse firm Williams & Connolly. In the document, Turner agreed to turn over one of Mrs. Clinton’s non-secure Apple iPads and two of her BlackBerrys to the FBI.

But neither smartphone received from the law firm contain SIM cards or Secure Digital (SD) cards, and a total of 13 mobile devices identified by the FBI as potentially using clintonemail.com email addresses were never located by Williams & Connelly.

“We are presuming there are still 13 devices at issue,” Tom Fitton, president of Judicial Watch, told Fox News. “The new records show how badly the Obama Justice Department and FBI mishandled the Clinton email investigation. They get the equivalent of wiped phones from the Clinton lawyers and do nothing?”

IJR

READ THE DOCUMENTS

As extensively reported by Fox, Clinton would often task aides including Monica Hanley with finding and supplying the secretary of state’s never-ending demand to use non-secure BlackBerrys for all her official government work.  Some of Clinton’s BlackBerrys wound up being pounded with hammers on orders by Huma Abedin after Clinton’s homebrew servers went down or when news that Clinton confidant Sidney Blumenthal’s email had been hacked in 2013 by the Romanian hacker known as “Guccifer”—Marcel Lehel Lazar.

The new documents offer a glimpse into the lawyering ballet inside the Beltway—as this surrendering of two BlackBerrys and one iPad by her private attorneys occurred just six days before Hillary Clinton, then the leading Democratic nominee for president, testified before Congress on Oct. 22, 2015 about the 2012 terrorist attack in Benghazi, Libya.

In a photo captured in the Benghazi hearing, Turner and her law partner David Kendall pointedly flanked Clinton during her marathon testimony before the House Select Committee on Benghazi. Also hovering nearby was longtime Clinton aide Cheryl Mills, who was also at the epicenter of Clinton’s deliberative use of a non-secure email system while she headed one of the most sensitive federal agencies in the U.S. government.

Mills, who was Clinton’s chief of staff and counselor at State, received immunity for her cooperation into the email investigation was permitted to be in the room while Clinton interviewed by the FBI in July 2016. Comey would later admit publicly that he had never heard of a potential witness representing the subject of an FBI investigation to be present during an interview with investigators.

Nearly a year has passed since Comey’s then-boss, Attorney General Loretta Lynch, held her infamous tarmac meeting with Bill Clinton in Phoenix, Arizona. Eight days later, Comey announced on July 5, 2016, that “regarding the handling of classified information, our judgement is that no reasonable prosecutor would bring such a case.”

Comey made his determination despite noting that Clinton and her colleagues “were extremely careless in their handling of very sensitive, highly classified information,” and even though 22 top secret email exchanges deemed too damaging to national security to release. Some of those exchanges contained Special Access Privilege (SAP) information characterized by intel experts as “above top secret.”

“They (the FBI) were played by Mrs. Clinton’s lawyers and didn’t care,” Fitton said. “The Trump Justice Department needs to audit this mess and figure out if the Clinton matters need to be reopened or reinvigorated.”

In the latest documents dumped by the FBI, a whopping 325 pages are cited as “total deleted pages.” The 42 pages that were released and are only readable in parts include 177 redactions. The redactions include those made citing Freedom of Information Act exemptions under (b) (7) (e) in which the information is denied because revelations could “disclose investigation techniques.“

Now—64 days after James Comey was fired by President Donald Trump as the director of the FBI, Christopher Wray is scheduled to sit down before the Senate Judiciary Committee for the start his confirmation process.

Two former agents with the FBI told Fox News they hope that “the atmosphere is changed with a new director.”

Natalia Veselnitskaya, Prevezon, Brooklyn, NY and Money Laundering

Natalia Veselnitskaya had clients to defend in New York. Those clients were Denis Katsyv, Alexander Litvak, and Timofey Krit. Natalia had expensive choices in accommodations in New York where the U.S taxpayer paid the bill.

Prevezon Holdings was part of a money laundering prosecution case in Southern District of New York that for the most part was settled in May of 2017. Prevezon is/was owned by Denis Katsyv and has a principal by the name of Timofey Krit. The Prevezon office was located in Brooklyn, New York. The registered agent for Prevezon is Gabriella Volshteyn.

Gabriella Volshteyn is a founder and a managing attorney of Volshteyn & Associates. The lawfirm boasts the following on the website:

In our Real Estate practice, we have participated in over $1 billion of transactions in commercial and residential real estate involving both the US-based and international corporate entities and individuals.

In our  Business and Contract Law practice, we have represented a full range of clients from individuals and small business owners to large multinational holding companies. We have drafted contracts ranging from simple corporate agreements to complex contractual agreements related to large-scale international events, such as Sochi Olympic Games.

In our Global Corporate and Tax practice, we have considerable expertise in structuring complex corporate, banking and investment accounts for foreign investors and the establishment of offshore trusts in tax-favored jurisdictions, such as the British Virgin Islands, the Cayman Islands, the Bahamas, the Netherlands, Antilles, the Channel Islands, Panama, Switzerland, Liechtenstein and Madeira.

Our Surrogacy Law practice is an area of passion for this firm as we have been fortunate to help many families from all over the world with bringing a child in their lives.  With the help of our firm, surrogacy has made the dream of having children possible for those who are infertile, unable to become pregnant, or unable to carry a child to term.

(of note, the countries listed above are those that are known to be quite common in use by front companies to hide money, evade taxes and park laundered funds)

*** While Donald Trump Jr. had a meeting on June 6, 2016 with Natalia Veselnitskaya, the meeting allegedly had several objectives including opposition intelligence on Hillary Clinton, getting waivers or removal of sanctions from the Magnitsky Act and later Russian adoption. Donald Jr. included Jared Kuschner and Paul Manafort in the meeting without vetting Natalia or on background the sanctions. Natalia also does have ties to former top members of GRU and FSB. As a normal practice, the Kremlin always dispatches operatives that are at least one layer removed from listed official positions of the Russian government.

A particular group of note for which Veselnitskaya was involved and is a large lobby operation in Washington DC is HRAGI, a front operation on human rights known as Human Rights Accountability Global Initiative Foundation. Those involved in the lobby operation on behalf of HRAGI and Prevezon include:

A. Rinat Akhmetshin – Russian national living in Washington D.C.
B. Robert Arakelian
C. Chris Cooper – CEO Potomac Square Group
D. Glenn Simpson – SNS Global and Fusion GPS
E. Mark Cymrot – Partner, Baker Hostetler
F. Ron Dellums – Former Republican Congressman (correction, Dellums is Democrat of operative status)
G. Howard Schweitzer – Managing Partner of Cozen O’Connor Public
Strategies

In more detail as published by Senator Grassley’s office:

The Russian Government also has a vested interested in ensuring that Prevezon
Holdings Limited and its affiliated companies successfully defend asset forfeiture
proceedings brought against them by the United States Government in New
York, in which Prevezon is accused of laundering proceeds of the $230 million
fraud.
Prevezon is owned by Denis Katsyv, the son of a Russian government official,
Piotr Katsyv. Denis Katsyv currently has $7million frozen by the Swiss General
Prosecutor, pursuant to a criminal investigation by the Swiss authorities into the
laundering of proceeds from the $230 million fraud. More here.

***

Another issue is Jared Kushner.

HRAGI’s other clients include Vladimir Lelyukh, a top executive at Sberbank Capital, a subsidiary of the state-owned Russian bank involved in the real estate, energy, transportation, and automotive sectors. Sberbank Capital’s CEO, Ashot Khachaturyants, is a former senior official in Russia’s Federal Security Service (FSB) and its Ministry of Economic Development and Trade.
State-owned Russian financial institutions are common conduits for surreptitious intelligence work in the country. Jared Kushner, the president’s son-in-law and senior adviser, has faced scrutiny over a January meeting a top executive at another bank with ties to Russian intelligence, Moscow-based Vnesheconombank. For context and validation, go here.

Vnesheconombank was sanctioned by the U.S. Treasury in 2014 due to Russian annexation of Crimea and Ukraine.

Vnesheconombank also known as VEB bank has the following officers:

 

Lawsuit Advances on Trump Dossier Case, McCain Testimony

Okay, this cat Aleksej Gubarev who owns a few internet tech companies has launched the lawsuit(s). Seems too that Gubarev is a Russian venture capitalist based out of Cyprus has an operational location in Dallas. His company boasts 75,000 servers across the globe. McCain was sent the 35 Trump dossier and had official conversations about the dossier with officials and passed the dossier to the FBI.

***

Former British ambassador to Moscow admits warning John McCain about Trump dossier

Sen. John McCain faces questions in a defamation lawsuit about leaks leading to publication of the now-infamous dossier that alleged Donald Trump’s campaign had connections to Russian operatives, McClatchy has learned.

The dossier compiled by former British spy Christopher Steele and his London firm, Orbis Business Intelligence Ltd., amounted to a collection of uncorroborated reports of collusion gathered as political research for sale to Trump’s opponents. It proved explosive when published by online news site BuzzFeed on Jan. 10.

Now, two lawsuits — one in the United States and a second in the U.K. — are being brought by lawyers for Aleksej Gubarev, a Cyprus-based Internet entrepreneur whom Steele’s Russian sources accused of cyber spying against the Democratic Party leadership.

According to a new court document in the British lawsuit, counsel for defendants Steele and Orbis repeatedly point to McCain, R-Ariz., a vocal Trump critic, and a former State Department official as two in a handful of people known to have had copies of the full document before it circulated among journalists and was published by BuzzFeed.

The court document obtained by McClatchy confirms that Sir Andrew Wood, a former British ambassador to Moscow and a Russia adviser to former Prime Minister Tony Blair, discussed the 35-page dossier with McCain.

“The Defendants considered that the issues were self-evidently relevant to the national security of the US, UK and their allies,” the document says, explaining why Steele and his partner, Christopher Burrows, felt it necessary to share the dossier’s findings.

*** The lawsuit document is here. 

Wood had told Britain’s The Guardian in January that McCain had reached out to him about the dossier, and had obtained it through other means. The court document confirms that Wood, Steele and former State Department official David Kramer decided together that new information gathered after the election should be shared with authorities in Britain and the United States.

A McCain spokesperson declined to comment Monday on the new court document, pointing instead to a Jan. 11 statement from the veteran senator about the dossier. “Upon examination of the contents, and unable to make a judgment about their accuracy, I delivered the information to the director of the FBI,” McCain had said then. “That has been the extent of my contact with the FBI or any other government agency regarding this issue.”

In recent congressional testimony, ex-FBI Director James Comey, fired by Trump amid a widening probe, acknowledged receiving the dossier from McCain on Jan. 6. Kramer, a former State Department official who until recently served as a senior director at Arizona State University’s McCain Institute for International Leadership, declined comment.

The British court documents are legal responses in the British suit and do not reflect the entire docket. The British suit is related to a similar lawsuit in the United States against online news site BuzzFeed.

At least a dozen national media organizations had a copy of the Steele dossier before it became public but hadn’t published details because much of the information had not been corroborated.

McClatchy was among them and subsequently published numerous reports on people named in the dossier, including a Russian diplomat and a supposed hacker who apparently is an imprisoned pedophile.

The dossier, without substantiation, said Gubarev’s U.S.-based global web-hosting companies, XBT and Webzilla, planted digital bugs, transmitted viruses and conducted altering operations against the Democratic Party leadership.

While one key name in the dossier was blackened out by BuzzFeed, Gubarev’s was not. He alleges that he was never contacted for comment, suffering reputational harm in the process.

In the court document, Steele’s barrister, Nicola Cain, argued that the portion of the dossier dealing with Gubarev, which came in weeks after Trump’s election and after Steele was no longer paid by his client for research, amounted to raw intelligence and was advertised as such. She did not return a call or email requests for comment.