Category Archives: FBI

Special Counsel for Hillary’s Email-Gate

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Brian Pagliano, the part time IT person hired by Hillary’s company called Clinton Executive Services Corporation has already cooperated with the FBI by turning over records from the server.

Politico: Logs for Hillary Clinton’s email server turned over to the FBI by a former aide to Clinton show no evidence of suspicious foreign traffic or hacking from abroad, a person familiar with the investigation said. The records were provided to the FBI by former Clinton information technology staffer Bryan Pagliano, according to the source, who spoke on condition of anonymity. Pagliano worked at the State Department but was also involved in setting up the server at Clinton’s Chappaqua, New York, home. More here.

Hillary did have phishing emails on her server but she did not open those emails. Attempts were clearly made, and for sophisticated hackers, there may be have some successes into her server where no cyber intrusion DNA would be glaring or found.

Special counsel to investigate Hillary urgently needed

TheHill: March at the United Nations, Hillary Clinton stood in front of the world and lied when she stated: “I did not email any classified material to anyone on my email. There is no classified material.”

As a former U.S. attorney, I believe we must follow the evidence.  In this case the evidence leads to one place—an urgent need to appoint special counsel to investigate this most serious breach of national security.
Since the State Department started its monthly release of Clinton’s emails from her time as secretary of State, the evidence has shown that she recklessly communicated with her staff and top political advisors with no regard for the security of classified material that the American people entrusted her to handle ethically and intelligently.
While the much-publicized events and revelations regarding this situation had already made a strong case for special counsel to be appointed, one particular recent discovery has made it absolutely imperative. Not only did Clinton’s emails contain over 1,700 emails with classified information, they contained SAP information—information classified at a level beyond top secret. This information was, and remains, such a security risk that the State Department refused to release even heavily redacted emails—it simply was “too damaging” to release in any form.  At this point, there is no doubt Clinton’s actions put our nation at risk.

Perhaps the need for special counsel would not be as clear and urgent without the troubling track record Clinton has had with the truth in this matter.  Chief among the many examples is that her story has changed from claiming she didn’t traffic in any classified material to she didn’t send anything “marked classified,” while continuing to deny she did anything wrong.  This attempt to excuse her behavior is simply not relevant—she was entrusted to keep marked and unmarked classified information secure.  She created the emails containing the classified material, and it would be absurd to think her failure to mark a document as classified would excuse the mistreatment of the information.  Further, she continued to store classified information in an unsecure manner for years.  Though she claims to have done nothing wrong, the evidence directly contradicts her public statements.

Polling has shown that over the years the American citizens’ trust in government has eroded. This is due, at least partly, to situations like this, where politically powerful individuals make statements that are completely contrary to the evidence, and are not held to the same standards as everyone else.  Ironically, it was President Clinton who in 1994 called the independent counsel “a foundation stone for the trust between the government and our citizens,” and “a force for government integrity and public confidence.”  Although independent counsel is no longer available, the sentiment remains equally applicable to the appointment of special counsel.

While I am encouraged the FBI is seriously investigating Hillary Clinton’s treatment of classified information, it is imperative someone independent from the administration is appointed. Our justice system is built on unbiased and equal treatment.  The political and personal ties between the president and Hillary Clinton prohibit this—President Obama appointed Clinton to the position and has practically endorsed her presidential bid. Both Clinton and Obama have made statements about the criminal case, indicating the outcome of the investigation would be favorable to Clinton in spite of the evidence.  The American people need to know that when the evidence dictates, even a politically powerful individual will be held to the same standard as all other citizens.  The integrity of the justice system requires appointment of special counsel with broad jurisdiction to investigate and prosecute any criminal violations discovered as the result of the use of Clinton’s private email system or discovered from the release of those documents.

It is a rare occurrence to appoint special counsel.  But it is also an unprecedented circumstance to have a secretary of State set up a private email server in her home to transmit classified information and expose the nation to security risks, and for that individual to then run to be commander in chief for the next four years.  Given the facts of this case—that it involves information at the highest echelons of our national defense and security, that the individual involved has misled and deceived at every turn, and that a clear conflict of interest exists with the Executive branch—no subjective person can believe the truth will be unearthed without a special counsel.

The American people deserve the truth, this tool will provide it, and on behalf of the American people—it should be deployed immediately.

Hillary, Pagliano and Shared Passwords?

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FBI investigating if Clinton aides shared passwords to access classified info

FNC: EXCLUSIVE: The FBI is investigating whether computer passwords were shared among Hillary Clinton’s close aides to determine how sensitive intelligence “jumped the gap” between the classified systems and Clinton’s unsecured personal server, according to an intelligence source familiar with the probe.

The source emphasized to Fox News that “if [Clinton] was allowing other people to use her passwords, that is a big problem.” The Foreign Service Officers Manual prohibits the sharing of passwords.

Such passwords are required to access each State Department network. This includes the network for highly classified intelligence — known as SCI or Sensitive Compartmented Information — and the unclassified system, known as SBU or Sensitive But Unclassified, according to former State Department employees.

Fox News was told there are several potential scenarios for how classified information got onto Clinton’s server:

  • Reading intelligence reports or briefings, and then summarizing the findings in emails sent on Clinton’s unsecured personal server.
  • Accessing the classified intelligence computer network, and then lifting sections by typing them verbatim into a device such as an iPad or BlackBerry.
  • Taking pictures of a computer screen to capture the intelligence.
  • Using a thumb drive or disk to physically move the intelligence, but this would require access to a data center. It’s unclear whether Clinton’s former IT specialist Bryan Pagliano, who as first reported by The Washington Post has reached an immunity deal with the Justice Department, or others had sufficient administrator privileges to physically transfer data.

Most of these scenarios would require a password. And all of these practices would be strictly prohibited under non-disclosure agreements signed by Clinton and others, and federal law.

It remains unclear who had access to which computers and devices used by Clinton while she was secretary of state and where exactly they were located at the time of the email correspondence. Clinton signed her NDA agreement on Jan. 22, 2009 shortly before she was sworn in as secretary of state.

The intelligence source said the ongoing FBI investigation is progressing in “fits and starts” but bureau agents have refined a list of individuals who will be questioned about their direct handling of the emails, with a focus on how classified information jumped the gap between classified systems and briefings to Clinton’s unsecured personal email account used for government business.

Fox News was told the agents involved are “not political appointees but top notch agents with decades of experience.”

A separate source said the list of individuals is relatively small — about a dozen, among them Clinton aide Jake Sullivan, who was described as “pivotal” because he forwarded so many emails to Clinton. His exchanges, now deemed to contain highly classified information, included one email which referred to human spying, or “HCS-O,” and included former Clinton aide Huma Abedin.

As Fox News first reported last year, two emails — one sent by Abedin that included classified information about the 2011 movement of Libyan troops during the revolution, and a second sent by Sullivan that contained law enforcement information about the FBI investigation in the 2012 Benghazi terrorist attack – kick-started the FBI probe.

Testifying to Congress Tuesday about encryption, FBI Director James Comey also was asked about the Clinton investigation. He responded that he is “very close personally” to the case “to ensure that we have the resources we need including people and technology and that it’s done the way the FBI tries to do all of its work: independently, competently and promptly. That’s our goal and I’m confident it’s being done that way.”

Earlier this week when she was asked if Clinton has been interviewed by the FBI, Attorney General Loretta Lynch insisted to Fox News’ Bret Baier “that no one outside of DOJ has been briefed on this or any other case. That’s not our policy and it has not happened in this matter.”

Fox News also has learned the State Department cannot touch the security clearance of top aides connected to the case without contacting the FBI, because agents plan to directly question individuals about their handling of the emails containing classified information, and they will need active clearances to be questioned.

While it is standard practice to suspend a security clearance pending the outcome of an investigation, Fox News reported Monday that  Clinton’s chief of staff at State, Cheryl Mills, who is also an attorney, maintains her top secret clearance. Mills was involved in the decisions as to which emails to keep and which to delete from the server.

At a press briefing Monday, Fox News pressed the State Department on whether this represented a double standard, or whether the clearances are in place at the direction of the FBI.

“This issue is under several reviews and investigations. I won’t speak for other agencies that may be involved in reviews and investigations,” spokesman John Kirby said. “Clearly we are going to cooperate to the degree that we need to.”

Hillary Clinton’s E-Mail Scandal Continues: Further Details Surface As Staffer Bryan Pagliano Granted Immunity In Exchange For Cooperating

Inquisitr: of Hillary Clinton’s IT staff members has been granted immunity by the U.S. federal government in exchange for breaking his silence regarding his role in setting up and managing the Democratic presidential front-runner candidate’s private e-mail server in Chappaqua, New York.

Bryan Pagliano — who first installed the network in Clinton’s home in 2009 — plans to now fully cooperate with the U.S. Department of Justice regarding the FBI’s investigation into the matter, according to the Washington Post.


In a statement to the media, Clinton campaign spokesperson Brian Fallon told the Washington Post that he was “pleased” that Pagliano would now work with investigators after previously invoking his Fifth-Amendment right to staying hush-hush before a September, 2015, Congressional panel, noting “As we have said since last summer, Secretary Clinton has been cooperating with the Department of Justice’s security inquiry.”

Many, however, see the Clinton staff member’s previous extended silence as a sign of possible incrimination.
Particularly vocal on the matter has been H.A. Goodman of the Huffington Post, who noted in a recent column that: “First, this can’t be a right-wing conspiracy because it’s President Obama’s Justice Department granting immunity… Second, immunity from what? The Justice Department won’t grant immunity… unless there’s potential criminal activity involved with an FBI investigation.”

Goodman would also note that Pagliano’s settlement to agree to testify “speaks volumes,” as “only one person set up the server that circumvented U.S. government networks.” The blame for this action, Goodman believes, falls squarely on Clinton and Pagliano.
In a previous story, the Washington Post reported that Clinton paid Pagliano as part of a “private arrangement” for the act of maintaining this private server, which she then used for years to store her official correspondences as Secretary of State. This assertion, which The Post sources to an “unnamed Clinton campaign official,” is also coupled with reports that Pagliano failed to list any of his income in his personal financial disclosures.

Clinton’s campaign responded with the spin that she hired Pagliano privately to ensure “taxpayer dollars were not spent on a private server that was shared by Clinton, her husband and their daughter as well as aides to the former president.”

The FBI’s investigation, meanwhile, remains ongoing as to what — if any — level of criminal activity occurred in Clinton’s home by storing actual classified documents on her private, non-government network. While the extent to which Clinton’s involvement in a crime will likely never be officially determined, it is known that as many as 31,380 e-mails were deleted.
According to the Washington Post, the FBI is targeting resolution in its investigation in the “coming months,” and plan to conduct many more interviews with Clinton and her senior officials as the law-enforcement agency attempts to determine the extent to which the presidential candidate is actually at fault. Specifically, officials are focusing on examining, in detail, the potential damage that Clinton’s e-mails could have caused had they been intercepted. No official indication has been given that prosecutors will convene a grand jury to subpoena this testimony and documents.

Clinton — who has been unofficially named the Democratic National Committee’s nominee-of-choice since well before any polls against her rival, Bernie Sanders, were taken — has taken care to classify the entire FBI investigation instead as a “security review.”

According to The Post’s anonymous sources, however, there is a commonly held belief that there is at least a small chance that some sort of an actual crime has been committed.

“There was wrongdoing,” noted a former senior law-enforcement official to the news outlet. “But was it criminal wrongdoing?”

FBI and Department of Justice spokespersons — in addition to Pagliano’s attorney, Mark McDougall — have declined to comment.

Report for California, What About your State?

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Golfing, tequila and spa treatments: These are the gifts given to California lawmakers in 2015

LATimes: State legislators accepted more than $892,000 in gifts last year, including foreign trips, expensive dinners, concert and sports tickets, golf games, spa treatments, Disneyland admissions and bottles of tequila and wine, according to filings released Wednesday.

Lawmakers had their expenses covered by others for educational and trade trips to France, China, Argentina, Australia, Taiwan, Singapore, Mexico and Israel.

 

In fact, travel costs dominate the gift tallies from last year with a large number of lawmakers deciding to fly overseas for conferences or policy meetings paid for entirely by influential interest groups and foundations.

The travel included 21 lawmakers who attended a conference in Maui in November at a cost of about $3,000 per person, paid for by a nonprofit group funded by oil and tobacco firms and other interests lobbying the Legislature.

The flood of gifts, especially from groups tied to interests seeking favorable treatment at the Capitol, raises red flags for ethics experts including Bob Stern, former general counsel for the Fair Political Practices Commission and a co-author of the state Political Reform Act.

“The people that make these gifts are trying to influence legislators and create goodwill, and clearly it does,” Stern said. “The average citizen doesn’t get these gifts. It’s only when you are in a position of power that you get these gifts.”

The total value of gifts is up by about $50,000 from 2014. A group with interest in promoting climate change policy helped send a large delegation of legislators led by Gov. Jerry Brown to a United Nations summit on climate change held in Paris in December.

Senate President Pro Tem Kevin de León (D-Los Angeles) had $4,077 of his travel expenses to Paris covered by the Climate Action Reserve, which advocates for solutions to climate change.

In all, De León received $30,200 in gifts, among the most of any lawmaker. Much of it was for educational trips to Japan, Mexico and Australia.

The $14,055 cost for de Leon’s Australian trip to look for drought solutions was covered by the California Foundation on the Environment and the Economy, a San Francisco think tank financed by special interests including PG&E, Shell, the State Building and Construction Trades Council and Chevron.

Claire Conlon, a spokeswoman for De León, defended both the travel and the way it is financed.

“As elected representatives of the world’s seventh-largest economy and a gateway to international trade corridors, building global relationships and studying best practices in other countries is an essential part of the job description,” she said. The funding arrangements with “respected nonprofits” mean “not a single taxpayer dollar is being spent,” she added.

De León also reported gifts of USC football tickets, bottles of tequila, meals and a tie. The disclosure forms that lawmakers must file annually do not require detailed descriptions of the gifts, so there is no way to know the brand of tequila or color of the tie.

Sen. Benjamin Allen (D-Santa Monica) reported receiving $37,900 in gifts, the most of any lawmaker, much of it to cover the cost of educational trips to China and Argentina.

“I represent a diverse coastal district with thousands of globally focused employers creating good jobs for our local economy,” Allen said. “The trips involved important public policy, environmental, economic and cultural exchanges, and I was honored to serve as part of these educational legislative delegations. Not a single taxpayer dollar was spent, and I fully reported and disclosed all such travel.”

Sen. Anthony Cannella (R-Ceres) reported $31,100 in gifts, including expenses for trips to Singapore and Australia. He also received more than $1,100 in green fees for golf paid for by supporters including the prison guards union and the California Independent Petroleum Assn.

A spa treatment, costing $396, was provided to Sen. Holly Mitchell (D-Los Angeles) by the Legislative Black Caucus.

In the Assembly, Cristina Garcia (D-Bell Gardens) received the most gifts, $33,832 worth and mostly involving overseas travel. Her $17,000 trip to Taiwan was paid for by the Taipei Economic and Cultural Foundation and her $14,348 trip to Australia with De León was covered by the California Foundation on the Environment and the Economy.

Evan Low (D-Campbell) received more than $31,000 in gifts, including a trip to China paid for by a group called U.S.-Asia Innovative Gateway, and a trip to Newport Beach paid for by the California Independent Petroleum Assn. He also received a $287 ticket to a Giants baseball game from PG&E.

Many of the gifts received by lawmakers would have been prohibited by legislation the governor vetoed two years ago. The bill would have banned nontravel gifts over $200, and barred tickets to amusement parks, professional sports games and concerts, as well as green fees for golf.

The public can read each legislator’s gift report on the FPPC website.

In vetoing the gifts bill, Brown wrote that it would be “adding further complexity without commensurate benefit. Proper disclosure, as already provided by the law, should be sufficient to guard against undue influence.”

The size of some of the gifts received last year troubled Jessica Levinson, a Loyola Law School professor and president of the Los Angeles City Ethics Commission.

“It’s fair to ask public officials to forgo gifts over certain thresholds,” she said.

A new bill proposes to outlaw travel gifts like the annual Maui convention put on by the Independent Voter Project, which received financing for the event from groups including the Western State Petroleum Assn., Shell Oil, Sempra, tobacco giant Altria, AT&T, the California Cable and Telecommunications Assn. and Koch Industries.

Many event sponsors send lobbyists or representatives to rub elbows with the elected officials poolside or on the golf course.

When Sharia/ISIS Goes Capitalist and Trading

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Islamic State ‘earning millions by playing the stock market’

Group using cash looted from banks in Mosul to speculate on international currency markets

Telegraph: Isil is making millions of dollars for its war chest by playing foreign currency markets under the noses of bank chiefs, it was revealed today.

The terror group is earning up to $20m (£14.29m) a month by funnelling dollars looted from banks during its takeover of the Iraqi city of Mosul into legitimate currency markets in the Middle East.

It then makes huge returns on currency speculation, which are then wired back via unsuspecting financial authorities in Iraq and Jordan, a parliamentary committee was told on Wednesday.

Islamic State of Iraq and the Levant’s (Isil) extraordinary venture into white collar crime is now a major source of income, along with oil smuggling and extortion from people living in Isil-controlled areas.

Details of the scam emerged during a hearing of a specially-convened Foreign Affairs sub-committee set up to examine Britain’s role in Isil financing.

The hearing was told that Isil finance chiefs would play the international stock markets using cash looted during their 2014 take over of Mosul, in which the group got its hands on an estimated $429m from the city’s central bank.

They also used money “siphoned off” from pension payments that are still being made by the Iraqi government to civil servants living in the city.

The details were revealed to the hearing by John Baron, the sub-committee’s chair, who demanded to know whether the British government – which has pledged to help cut off Isil’s finance networks – was taking proper action against it.

“The cash that Isil has looted, along with siphoned off pension payments, is routed into Jordanian banks and brought back into the system via Baghdad,” he said. “That allows the system to be exploited by Isil, in that they take a turn (profit) on the foreign currency actions and siphon that cash back.”

The profits were channeled back into Isil coffers by “hawala” transfers, an unregulated system of money transfer whereby cash payments are made via agents in one country after a similar amount is presented as collateral in another.

Infographic: How Does ISIS Fund Itself? | Statista

Tobias Ellwood, a junior Foreign Office minister, admitted to the committee that there was a “porousness” in the local financial system but said that work was now underway to shut it down. It had been done without the active connivance of bank staff, he added.

In December, the Central Bank of Iraq named 142 currency-exchange houses in Iraq that the US suspected of moving funds for Islamic State. It banned them from its twice-monthly dollar auctions in a bid to stop the terror group getting its hands on the cash – a main source of exchange in war-torn Iraq.

But Mr Ellwood conceded: “Iraq could have moved faster on this”. Asked if the similar moves had been made in Jordan, he said he was unable to give an answer.

“Jordan plays an important role in the (anti-Isis) coalition,” he added. “Work is being done to close it down, I don’t think there is anything near as much from that source of revenue as before.”

The committee heard claims that Isil’s “rake off” from foreign currency speculation was a “significant part of their income stream”, although Mr Ellwood said he thought that estimates of $20m were excessive.

**** 

Spiegel: Some members of the intelligence community even view spying in the global financial system with a certain amount of concern, as revealed by a document from the NSA’s British counterpart — the Government Communications Headquarters (GCHQ) — that deals with “financial data” from a legal perspective and examines the organization’s own collaboration with the NSA. According to the document, the collection, storage and sharing of “politically sensitive” data is a highly invasive measure since it includes “bulk data — rich personal information. A lot of it is not about our targets.”

Indeed, secret documents reveal that the main NSA financial database Tracfin, which collects the “Follow the Money” surveillance results on bank transfers, credit card transactions and money transfers, already had 180 million datasets by 2011. The corresponding figure in 2008 was merely 20 million. According to these documents, most Tracfin data is stored for five years.

Monitoring SWIFT

The classified documents show that the intelligence agency has several means of accessing the internal data traffic of the Society for Worldwide Interbank Financial Telecommunication (SWIFT), a cooperative used by more than 8,000 banks worldwide for their international transactions. The NSA specifically targets other institutes on an individual basis. Furthermore, the agency apparently has in-depth knowledge of the internal processes of credit card companies like Visa and MasterCard. What’s more, even new, alternative currencies, as well as presumably anonymous means of payment like the Internet currency Bitcoin, rank among the targets of the American spies.

The collected information often provides a complete picture of individuals, including their movements, contacts and communication behavior. The success stories mentioned by the intelligence agency include operations that resulted in banks in the Arab world being placed on the US Treasury’s blacklist.

In one case, the NSA provided proof that a bank was involved in illegal arms trading — in another case, a financial institution was providing support to an authoritarian African regime. Full article here.

Freed Dealer, Obama Released, Kills 3

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Crack Dealer Freed Early Under Obama Plan Murders Woman, 2 Kids

JW: A convicted crack dealer who left prison early as part of the Obama administration’s mass release of federal inmates has been indicted by a grand jury for fatally stabbing his ex-girlfriend and her two kids in Columbus, Ohio. The gory crime drew national attention because the children, ages 7 and 10, were murdered to eliminate them as witnesses in the brutal massacre of their 32-year-old mother.

This week a grand jury in Franklin County returned a 10-count, death-penalty indictment against the ex-con, 35-year-old Wendell Callahan, for the triple murders. Callahan broke into his ex-girlfriend’s apartment and stabbed the three victims, according to a statement issued by Franklin County Prosecutor Ron O’Brien announcing the indictment. The bloody crime scene was discovered by the woman’s current boyfriend, who subsequently engaged in a fight with Callahan before he fled. The indictment includes charges of aggravated murder with prior calculation and design and aggravated murder of victims under the age of 13. “There are multiple charges regarding the three victim deaths because there are different methods to commit the crime of murder and the Prosecutor’s Office typically charges all methods”, O’Brien stated. Callahan is in jail on $3 million bail and is scheduled to be arraigned later this week.

Callahan should have been in jail when the crimes occurred, but he was released four years early because federal sentencing guidelines for crack dealers got reduced. The change is part of President Obama’s effort to reform the nation’s justice system as a way of ending racial discrimination. The initiative was technically launched back in 2010 when the president signed a measure that for the first time in decades relaxed drug-crime sentences he claimed discriminated against poor and minority offenders. This severely weakened a decades-old law enacted during the infamous crack cocaine epidemic that ravaged urban communities nationwide in the 1980s. As part of the movement the U.S. Sentencing Commission lowered maximum sentences for drug offenders and made it retroactive, leading to the early release of thousands of violent thugs like Callahan.

In November the administration began releasing 6,000 drug convicts coined “non-violent” offenders whose sentences were too long under the old guidelines. News reports quickly surfaced contradicting the administration’s assessment that the newly released convicts were not violent. Among them was the leader of a multi-million dollar operation that smuggled drugs from Canada to Maine. Prosecutors refer to the 29-year-old con as a “drug kingpin” who was one of “America’s Most Wanted.” Shortly before the administration’s mass release of drug convicts, federal prosecutors warned that drug trafficking is inherently violent and therefore the phrase “non-violent drug offenders” is a misnomer. The nation’s prosecutors also cautioned that reducing prison sentences for drug offenders will weaken their ability to bring dangerous drug traffickers to justice.

As if it weren’t bad enough that the administration is rewarding thousands of criminals with get-out-of-jail cards, huge amounts of taxpayer dollars are being spent on programs to help them find housing and jobs. In the aftermath of the mass release of federal prisoners Judicial Watch reported on two “re-entry” programs to ease the transition from jail. One received $1.7 million and ordered public housing facilities not to reject tenants with criminal records. The other allocated $20 million to the Department of Labor (DOL) to help ex-cons find work and thus end the “cycle of poverty, criminality and incarceration.”

More here including photos.

Hillary calls for sentencing reform too.

This all began in 2013 between Obama and Eric Holder and Loretta Lynch continues to carry the baton.

VOA: WASHINGTON— U.S. Attorney General Eric Holder has announced a major shift in how the federal government plans to prosecute nonviolent criminals involved in drug crimes, with the aim of easing overcrowding in the nation’s prisons.

Holder outlined several policy changes in a speech to the American Bar Association meeting in San Francisco.

The attorney general said too many Americans go to prison for far too long and for no truly good law enforcement reason.  His main focus was low-level drug crimes that can often bring minimum mandatory sentences of five or 10 years in prison.

Holder says the federal government will now follow the lead of several states that emphasize drug treatment and community service programs as alternatives for non-violent drug offenders who are not associated with criminal gangs or drug cartels.

“Widespread incarceration at the federal, state and local levels is both ineffective and unsustainable,” he said. “It imposes a significant economic burden totalling $80 billion in 2010 alone and it comes with human and moral costs that are impossible to calculate.”