Increased Alarm over Intrusion into U.S. and Sandia/Los Alamos

WASHINGTON (AP) — Federal authorities expressed increased alarm Thursday about an intrusion into U.S. and other computer systems around the globe that officials suspect was carried out by Russian hackers. The nation’s cybersecurity agency warned of a “grave” risk to government and private networks.

The Cybersecurity and Infrastructure Security Agency said in its most detailed comments yet that the intrusion had compromised federal agencies as well as “critical infrastructure” in a sophisticated attack that was hard to detect and will be difficult to undo.

CISA did not say which agencies or infrastructure had been breached or what information taken in an attack that it previously said appeared to have begun in March.

“This threat actor has demonstrated sophistication and complex tradecraft in these intrusions,” the agency said in its unusual alert. “CISA expects that removing the threat actor from compromised environments will be highly complex and challenging.”

President Donald Trump, whose administration has been criticized for eliminating a White House cybersecurity adviser and downplaying Russian interference in the 2016 presidential election, has made no public statements about the breach.

President-elect Joe Biden said he would make cybersecurity a top priority of his administration, but that stronger defenses are not enough.

“We need to disrupt and deter our adversaries from undertaking significant cyberattacks in the first place,” he said. “We will do that by, among other things, imposing substantial costs on those responsible for such malicious attacks, including in coordination with our allies and partners.”

The cybersecurity agency previously said the perpetrators had used network management software from Texas-based SolarWinds t o infiltrate computer networks. Its new alert said the attackers may have used other methods, as well.

Over the weekend, amid reports that the Treasury and Commerce departments were breached, CISA directed all civilian agencies of the federal government to remove SolarWinds from their servers. The cybersecurity agencies of Britain and Ireland issued similar alerts.

A U.S. official previously told The Associated Press that Russia-based hackers were suspected, but neither CISA nor the FBI has publicly said who is believed be responsible. Asked whether Russia was behind the attack, the official said: “We believe so. We haven’t said that publicly yet because it isn’t 100% confirmed.”

Another U.S. official, speaking Thursday on condition of anonymity to discuss a matter that is under investigation, said the hack was severe and extremely damaging although the administration was not yet ready to publicly blame anyone for it.

“This is looking like it’s the worst hacking case in the history of America,” the official said. “They got into everything.”

The official said the administration is working on the assumption that most, if not all, government agencies were compromised but the extent of the damage was not yet known.

This hack had nothing to do with President Trump firing Director Krebs at CISA even though Associated Press keeps suggesting. But things just took a turn for the bad bad side –>

Sandia National Laboratories - From the Manhattan Project to a National Lab Sandia

Texas A&M System part of team awarded lucrative Los Alamos National Lab  contract | The Texas Tribune Los Alamos

The Energy Department and National Nuclear Security Administration, which maintains the U.S. nuclear weapons stockpile, have evidence that hackers accessed their networks as part of an extensive espionage operation that has affected at least half a dozen federal agencies, officials directly familiar with the matter said.

On Thursday, DOE and NNSA officials began coordinating notifications about the breach to their congressional oversight bodies after being briefed by Rocky Campione, the chief information officer at DOE.

They found suspicious activity in networks belonging to the Federal Energy Regulatory Commission (FERC), Sandia and Los Alamos national laboratories in New Mexico and Washington, the Office of Secure Transportation and the Richland Field Office of the DOE. The hackers have been able to do more damage at FERC than the other agencies, the officials said, but did not elaborate.

Federal investigators have been combing through networks in recent days to determine what hackers had been able to access and/or steal, and officials at DOE still don’t know whether the attackers were able to access anything, the people said, noting that the investigation is ongoing and they may not know the full extent of the damage “for weeks.”

Spokespeople for DOE did not immediately respond to requests for comment.

The attack on DOE is the clearest sign yet that the hackers were able to access the networks belonging to a core part of the U.S. national security enterprise. The hackers are believed to have gained access to the federal agencies’ networks by compromising the software company SolarWinds, which sells IT management products to hundreds of government and private-sector clients.

DOE officials were planning on Thursday to notify the House and Senate Energy committees, House and Senate Energy and Water Development subcommittees, House and Senate Armed Services committees, and the New Mexico and Washington State delegations of the breach, the officials said.

The FBI, Cybersecurity and Infrastructure Security Agency, and Office of the Director of National Intelligence acknowledged the “ongoing” cybersecurity campaign in a joint statement released on Wednesday, saying that they had only become aware of the incident in recent days.

“This is a developing situation, and while we continue to work to understand the full extent of this campaign, we know this compromise has affected networks within the federal government,” the statement read.

NNSA is responsible for managing the nation’s nuclear weapons, and while it gets the least attention, it takes up the vast majority of DOE’s budget. Similarly, the Sandia and Los Alamos National Labs conduct atomic research related to both civil nuclear power and nuclear weapons. The Office of Secure Transportation is tasked with moving enriched uranium and other materials critical for maintaining the nuclear stockpile.

Hackers may have been casting too wide a net when they targeted DOE’s Richland Field Office, whose primary responsibility is overseeing the cleanup of the Hanford nuclear waste site in Washington state. During World War II and the Cold War, the U.S. produced two- thirds of its plutonium there, but the site hasn’t been active since 1971.

The attack on the Federal Energy Regulatory Commission may have been an effort to disrupt the nation’s bulk electric grid. FERC doesn’t directly manage any power flows, but it does store sensitive data on the grid that could be used to identify the most disruptive locations for future attacks.

21 hardened drug dealers’ at UNC, Duke, App State

Nearly two dozen people, including current and former students at UNC, Duke and Appalachian State universities, have been charged in connection with the investigation of a large-scale drug ring, local and federal law enforcement officials announced Thursday.

Many of the 21 people charged were connected with the Phi Gamma Delta, Kappa Sigma and Beta Theta Pi fraternal organizations, officials said. The investigation is continuing, and more charges are possible.

Thursday’s news conference was held “to save lives,” said Matthew G.T. Martin, U.S. attorney for the Middle District of North Carolina, who was joined at a news conference by Orange County Sheriff Charles Blackwood and other law enforcement officials.

“I want to make this clear,” Martin said outside the Sheriff’s Office in Hillsborough. “This was not the situation where you have single users — a 19-year-old sipping a beer or you have someone who is taking a puff of a joint on the back porch of a frat house. These are 21 hardened drug dealers.”

***

Source: The suspects were responsible for moving thousands of pounds of marijuana, hundreds of kilograms of cocaine, LSD, molly, mushrooms, steroids, HGH, Xanax and other narcotics.

The investigation started years ago. The Orange County Sheriff’s Office and the Drug Enforcement Agency launched an investigation in November 2018 into cocaine being sold in the Chapel Hill area.

It soon became clear that the illegal drug distribution was happening at or near UNC fraternity organizations.

UNC Chapel Hill Investigates Underage Drinking :: WRAL.com

Court filings specifically point to UNC chapters of Phi Gamma Delta, Kappa Sigma, and Beta Theta Pi from 2017-2020 being sites of illegal drug activity.

“Dealers set up inside these houses, poisoning fellow members of their fraternity, fueling a culture. And that’s why I say today is about saving lives. Because this reckless culture has endangered lives,” Martin said.

An Appalachian State fraternity member is also accused of being part of the drug ring, selling to fellow App State students as well as people in Chapel Hill.

Investigators also identified a female Duke student as being responsible for distributing cocaine to students at Duke and to fraternity members at UNC.

A primary supplier from California was the first person charged. According to court documents, from March 2017 until March 22, 2019, he supplied approximately 200 pounds of marijuana and two kilograms of cocaine weekly to a cooperating defendant in Orange County. Law enforcement operations at locations associated with the subject in Carrboro and Hillsborough resulted in the seizure of 148.75 pounds of marijuana, 442 grams of cocaine, 189 Xanax pills, steroids, human growth hormone, other narcotics, and approximately $27,775 in U.S. currency.

The investigation showed that payment for drugs was made using Venmo and by sending cash through the U.S. mail. That supplier pleaded guilty to on Nov. 24 and was sentenced to 73 months in prison.

The five defendants indicted for conspiracy to distribute cocaine and conspiracy to distribute marijuana face terms of imprisonment ranging from 10 years to life.

“College communities should be a safe haven for young adults to get a higher education. Not a place where illegal drugs are easily accessible,” DEA agent Matt O’Brien said. “The arrest of these drug traffickers makes these college campuses and their respective communities safer.”

UNC-Chapel Hill Chancellor Kevin Guskiewicz issued the following statement about the allegations; “We are extremely disappointed to learn of these alleged actions on our campus. The University is committed to working with law enforcement to fully understand the involvement of any university individuals or organizations so that disciplinary action can be taken. Although none of the individuals named today are currently enrolled students, we will remain vigilant and continue to work with our law enforcement partners to identify and address any illegal drug use on our campus. Our community can be certain that the University will enforce the student conduct code to the fullest extent possible.”

Pelosi Refusing to Advance China Task Force Legislation Items

Primer: China's Xi Jinping warned Trump could sow 'chaos' after 2016 election -  Business Insider

On September 25, 2015, during CCP General Secretary Xi’s state visit to the United States, President Obama and Xi gave remarks to the press in the White House Rose Garden. The two leaders announced that they had agreed “neither the U.S. or the Chinese government will conduct or knowingly support cyber-enabled theft of intellectual property, including trade secrets or other confidential business information for commercial advantage.” Xi also pledged that “China does not intend to pursue militarization” of the South China Sea. Neither of these promises to the American people were made in good faith. Today, “China is using cyber-enabled theft as part of a global campaign to ‘rob, replicate, and replace’ non-Chinese companies in the global marketplace,” according to Assistant Attorney General John Demers. Meanwhile, the PRC’s military outposts in the South China Sea have been proven “capable of supporting military operations and include advanced weapon systems,” according to the Pentagon.

October 01, 2020 Congressional Record

COUNTERING THREAT OF CHINESE COMMUNIST PARTY The SPEAKER pro tempore. The Chair recognizes the gentleman from Pennsylvania (Mr. Joyce) for 5 minutes. Mr. JOYCE of Pennsylvania. Mr. Speaker, after months of hard work and collaboration, the China Task Force has released our final report, which includes more than 400 solutions to counter the growing threat of the Chinese Communist Party.

This report is the framework for combating the aggressive Chinese Communist regime. After meeting with more than 130 experts, we developed realistic and achievable solutions that take a comprehensive approach to strengthening America’s national security and holding the Chinese Government accountable. We realized that out of our 400 recommendations, 180 are legislative solutions, of which 64 percent are bipartisan and one-third have already passed either the House or the Senate.

Mr. Speaker, these are commonsense solutions that we can vote on today to strengthen our strategic position for tomorrow. As the only physician serving on the China Task Force, it was my privilege to delve into opportunities to strengthen our supply chains and ensure that Americans are never again beholden to the Chinese Government for key medicines or healthcare supplies.

On the Health and Technology Subcommittee, I led efforts to strengthen [[Page H5110]] the supply chains for medicines, semiconductors, and other vital materials. Congress has passed several provisions aimed at advancing research and the manufacturing of critical medical supplies here in the United States. We also created new reporting requirements to help us better understand international supply chains and counter vulnerabilities in the system.

To bolster our technology supply chain, I cosponsored H.R. 7178, the CHIPS Act, to increase domestic production of advanced semiconductors, which will help Americans to develop next-generation telecom technology, fully automated systems, and, importantly, new weapons systems. I also introduced the ORE Act, H.R. 7812, to incentivize the domestic production of rare earth materials, which is key to breaking the Chinese monopoly on critical supply chains. America cannot allow China to win the race to next-generation technology. We want innovative breakthroughs to happen here in this country, and the China Task Force is making progress through the legislative process. As a leader on the competitiveness committee, I focused on issues ranging from combating Chinese Communist-sponsored theft of intellectual property to exposing the influence of the Chinese in U.S. research institutions and countering the importation of illicit fentanyl.

Too often, American companies are being coerced to surrender intellectual property to the Chinese Government in order to gain entry into the Chinese marketplace. In extreme cases, we hear of outright theft by Chinese hackers and agents. The China Task Force has produced recommendations that direct the Federal Government to ramp up investigations of individuals acting as pawns of the Chinese Communist Party and enforce antitheft laws.

Our Nation has also seen wholesale efforts of the Chinese Government to steal research and gain influence at United States universities. In my own backyard, the FBI arrested a former Penn State researcher suspected of espionage. The task force has compiled provisions to increase transparency and accountability in the higher education system, and I introduced legislation to close loopholes and force the disclosure of all foreign money in our research systems. Finally, we must stop illicit fentanyl from reaching our communities and killing our neighbors.

The China Task Force has produced recommendations to stop the importation of these devastating analogues from China. In the House, I cosponsored legislation to hold foreign nations, including China, accountable if they fail to cooperate with U.S. narcotics control efforts and prosecute the production of fentanyl in their countries. I thank Senator Toomey for championing this provision in the Senate.

By implementing these solutions, we can make America safer, stronger, and better equipped to lead in the 21st century. The China Task Force final report is a framework. It is our playbook to make a difference. While our work on this report has finished, our commitment to this cause must and will continue. Phase two starts today.

The 141 page report is found here.

After Lying, Ambassador Yovanovitch has a Fat Job at Georgetown

Ambassador (ret.) Marie L. Yovanovitch is a Senior Fellow in the Russia and Eurasia Program at the Carnegie Endowment for International Peace, which is at Georgetown University’s Walsh School of Foreign Service.

(Washington, DC)Judicial Watch announced today that it received 210 pages of records from the State Department which show that former U.S. Ambassador to Ukraine Marie “Masha” Yovanovitch had specifically warned in 2017 about corruption allegations against Burisma Holdings. During her November 2019 testimony in the impeachment proceedings against President Donald Trump, Yovanovitch told lawmakers that she knew little about Burisma.

The records were obtained by Judicial Watch in response to a FOIA lawsuit filed in January 2020 seeking records of communications from the U.S. Embassy in Kyiv mentioning Burisma (Judicial Watch v. U.S. Department of State (No. 1:20-cv-00229)).

On October 4, 2017, Michael Polt, a former ambassador to Estonia and Serbia and who until October 2020 was Senior Director at the McCain Institute, emailed Yovanovitch regarding the McCain Institute’s plan to conduct leadership development training for Ukrainian prosecutors that would be funded by Burisma. The idea was suggested to Polt by Sally Painter, Burisma’s lobbyist at Blue Star Strategies, and a Burisma executive. In the email, Polt notes that he was introduced to Painter by U.S. special envoy to Ukraine, Kurt Volker. Volker was also a Trump impeachment witness.

Polt emails Yovanovitch on October 4, 2017:

Dear Masha: Greetings from the home front and all the best for your complex assignment in Kiev! I wonder if I could pick your brain on a leadership development we have been asked to run for Ukrainian public prosecutors here at the McCain Institute. Kurt cannot get involved with this, due to his other role as Special Envoy. Sally Painter of Blue Star Strategies, whom Kurt introduced to me and then stepped aside, together with Vadym Poharskyi of the Burisma Group have asked us whether we could provide a two-week Leadership Development and Professional Capacity Building program for Ukrainian public prosecutors proposed to us by the Ukrainian Chief Prosecutor. Burisma would fun this. We are prepared to do this, as we have done for similar groups from the DRC [Democratic Republic of the Congo] and from Pakistan. I would greatly appreciate your view if you know Burisma and/or Vadym or others.

Yovanovitch, in her response, warned Polt about Burisma, writing:

Mike: Sorry not to have responded more quickly. I will get back to you with a fuller response, but I would urge caution in dealing with the Burisma Group. It is widely believed that the owner was the beneficiary of the corrupt justice system here and I think –to the extent that anyone is aware that Burisma is funding the training –there would be raised eyebrows in Kyiv over the irony of Burisma training prosecutors and to what end.

I’d also note that the PGO [Prosecutor General’s Office] is one of the entities here that remains resolutely unreformed. After a year and a half of trying, we pulled out and reprogrammed our resources into other areas in the justice sector that were ready for change. Wish I had better news and will get back to you with more details.

In a November 7, 2017, email to Yovanovitch, Polt indicates that he is taking her “sage advice” and “not moving forward” with Burisma’s funding of the training.

During her November 15, 2019, testimony before the House Intelligence Committee in the impeachment proceedings, Yovanovitch said she didn’t have much knowledge about Burisma, and noted that she only learned of its connection to the Biden family through “press reports” she read while preparing for her Senate confirmation hearing.

The new production of records from the State Department also includes several emails regarding the U.S. Embassy in Kyiv’s response to John Solomon’s reporting for The Hill. The emails are almost entirely redacted, as are the names of the officials involved. In one email regarding this effort, an unidentified official cites a report by the George Soros-funded Anti-Corruption Action Center defending itself against the reporting as a “useful reference point.”

The U.S. Embassy in Kyiv closely monitored media and social media reaction to many conservatives and journalists in potential violation of federal law.

“Marie Yovanovitch knew much more about Burisma than what she revealed in her testimony at the sham impeachment hearings,” said Judicial Watch President Tom Fitton. “Judicial Watch will continue its efforts to unearth the shady details in the Burisma-Biden scandal that is not going to go away.”

In an October production from the State Department, Judicial Watch received records which included a briefing checklist of a February 22, 2019, meeting in Kyiv between Yovanovitch and Painter. The briefing checklist noted that Painter also planned to meet with Foreign Commercial Service (FCS) Officer Martin Claessens “regarding the Burisma Group energy company.”

At the time of the meeting, Hunter Biden, son of former Vice President Joe Biden, was serving on the board of directors for Burisma Holdings, a Ukrainian energy firm, despite having no previous experience in the energy industry. Biden served on the board of Burisma until his term expired in April 2019.

In September 2020, Judicial Watch made public records that show George Kent, the Obama administration’s deputy assistant secretary of state in charge of Ukraine policy, which was copied to Yovanovitch, highlighting Russia-linked media “trolling” Joe Biden over “his son’s business.”

In a related case Judicial Watch uncovered records showing the U.S. embassy in Ukraine monitoring, in potential violation of law, Donald Trump, Jr. Rudy Giuliani, and major journalists on Twitter on their commentary on Ukraine, “Biden-Burisma 2020,” and George Soros. The search terms that were flagged to be monitored by State Department officials on social media included Yovanovitch, Ukraine Ambassador, Ukrainian Ambassador, Ukraine Soros, Clinton campaign, and Biden-Burisma.

Ghislaine Maxwell and her Husband offer $28.5 M Bail Package

NYP: Jeffrey Epstein’s accused madam Ghislaine Maxwell has proposed a $28.5 million bail package — that represents all of her and her husband’s assets — in a desperate bid to spring her from federal lockup, according to a new motion unsealed Monday.

Jeffrey Epstein Case: No Bail For Ghislaine Maxwell | NBC New York - YouTube

The suggested package is “exceptional in its scope and puts at risk everything that Ms. Maxwell has — all of her and her spouse’s assets, her family’s livelihood, and the financial security of her closest friends and family — if she were to flee, which she has no intention of doing,” wrote her lawyer Mark Cohen.

Although her spouse’s name is redacted from the documents, his identity has been widely reported as tech CEO Scott Borgerson.

 

The package is composed of a $22.5 million bond co-signed by her and her husband, according to the motion that was filed under seal on Dec. 4.

Who Scott Borgerson is, the tech CEO with ties to Ghislaine Maxwell -  Business Insider

Scott Borgerson, 44, is the CEO of CargoMetrics, a data-analytics company for maritime trade and shipping. He cofounded the Boston-based company in 2010, and it was most recently valued at $100 million in 2016.

Five additional bonds totaling $5 million will be co-signed by seven of Maxwell’s closest friends and family members whose names were redacted.

She would be released to home confinement with a GPS ankle monitor — although the name of the person with whom she’d reside was withheld.

Maxwell’s security firm would post the remaining $1 million bond.

The British socialite would also sign waivers of her right to contest extradition from two countries where she holds passports: France and the United Kingdom.

A team of private security guards would tail her 24 hours a day, seven days a week to ensure her safety after she received threats against her and her family, the filing says.

At a bail hearing shortly after her arrest in July, US District Judge Alison Nathan refused to release her to home confinement on a $5 million bond over concerns she had been evasive about her finances and was a serious flight risk.

The British heiress wouldn’t disclose her husband’s name to pretrial services, prosecutors had said.

In the motion, Maxwell describes living a “quiet family life” in an oceanfront mansion in Manchester-by-the-sea, Mass. with her spouse for four years prior to her indictment in Manhattan federal court.

She fled to a New Hampshire compound, not to evade authorities as prosecutors contended at her first bail hearing, but due to an “intense media frenzy and threats” that endangered the “safety and wellbeing of herself and her family,” wrote Cohen.

Her husband did not initially come forward to co-sign her bail package for these reasons, the filing says.

But the restrictive jail conditions, which have amounted to solitary confinement, have been unbearable, and the 58-year-old daughter of disgraced media titan Robert Maxwell has been relentlessly skewered in the press, according to her lawyers.

In the first three months she was locked up, she was pilloried in more than 6,500 national media articles.

“That exceeds the number of articles that mentioned such high-profile defendants as Harvey Weinstein, Bill Cosby, Joaquin “El Chapo” Guzman Loera, and Keith Raniere in the 90-day period following their arrests, combined,” her attorney wrote.

She has denied the allegations and is eager to defend herself against a case that lacks corroboration and “boils down to witness testimony about events that took place over 25 years ago,” the papers say.

She’s charged with recruiting and grooming girls and young women to be sexually abused by her and Epstein and lying about it.