People Schiff Refuses to Call for Testimony on the Ukraine Case

With the newly drafted rules that the Pelosi office published to set-up the vote for a ‘formal’ impeachment inquiry sets out that the Republicans can only make requests for witnesses yet Congressman Schiff and those on the majority in the HPSCI can refuse. Swell huh? Then there is the matter that Schiff is quite selective with those he wants to testify omitting so many others with regard to UkraineGate.

This is a long very complicated affair so to boil it down, members of Congress know full well the money-laundering and even cases of murder when it comes to Ukraine and you should have a sense of it as well.

During the Robert Mueller Russian collusion investigation, there were several lawyers and FBI money-laundering experts where you can bet much of this information came across their desks. You must also understand that any sitting president and in this case President Trump just cannot deliver taxpayer dollars in the form of foreign aid to countries teeming in corruption without affecting diplomatic policy and asking for cooperation to root out corruption. Perhaps some of the Schiff witnesses that have provided testimony including LTC. Alexander Vindman should rethink some of this actions and conclusions with regard to Trump’s interactions with matters dealing with Ukraine and China and countless other countries.

As an example of the complications that Congressman Schiff and his committee are ignoring include at least two Ukrainian oligarchs that essentially stole an estimated $5.5 billion from Ukraine, Ihor Kolominsky and Gennady Bogolyubov. He is also ignoring seeking the testimony of Congresswoman Debbie Jessika Mucarsel-Powell. She represents the Florida 26th District and prior to that she was a volunteer for John Kerry’s presidential campaign and then later the Obama presidential campaign. Debbie’s husband, Robert Powell was paid $700,000 is on retainer as an attorney for Ukrainian Oligarch Ihor Kolominsky’s companies. Daily Beast reported in part last year: “Kolomoisky, who sicced his own private army on the Russians after they invaded eastern Ukraine, has been accused of sponsoring contract killings.” Swell client there Robert.

The matter of the corruption with regard to Ukraine extends quite beyond the Bidens and Burisma. In fact it goes far past just a few million dollars, in fact the numbers really exceed 6 billion. More on that later.

Corruption in Ukraine should be measured in not years but rather decades. The corruption does not stay within Ukraine but spreads to Cyprus, the United Kingdom and even all the way to Delaware and Ohio.

On January 16, the National Bank of Ukraine (NBU) published key findings from a report by Kroll that backed allegations of large-scale fraud at PrivatBank, which was taken over by the state in December 2016. These include claims by employees that the bank acted as a “vacuum cleaner”, with business development geared towards attracting deposits that were then dispersed as loans to companies related to the bank’s owners, Igor Kolomoisky and Gennadiy Bogolyubov. According to Kroll, a “loan recycling scheme” was devised to conceal the fraud, whereby new loans were continually issued to new related parties to repay the principal and interest on older loans. Multiple internal transactions within the Privat group, including between the Ukrainian operation and units in Cyprus and Latvia, were also reportedly used to disguise fund flows.

***

Prior to this, in fact in 2007 and 2008, the US has been active in Ukraine for some time. In 2007, the firm Vanco won a contract to extract gas from the Black Sea, a deal that was annulled by Tymoshenko after the firm passed on the rights to another company that included eastern Ukrainian and Russian business interests.Yanukovych’s government worked hard to win over US and multinational firms for oil and gas extraction in Ukraine. Kyiv signed a contract with the US-based Chevron at the end of 2013 to extract shale gas in the west of the country. Another deal with the energy giant ExxonMobil – for gas in the Black Sea area – was abandoned following opposition protests.

But the news about the appointment of Hunter Biden has sparked allegations of nepotism – not least because it was revealed just a few weeks after his father’s visit to Kyiv on April 22. Neither Burisma or the US State Department responded to DW’s requests for comment. White House spokesman Jay Carney would say only that Hunter Biden was a private citizen and that his job had no impact on US policy. Ukrainian media reports about Burisma reveal an impenetrable web of companies, most of which are registered in Cyprus. One name, Mykola Slotshevski, appears more than once. The 47-year-old is thought to have been the original owner of the company – at least until recently.

Now Schiff compelled Rudy Giuliani to preserve all documents. Others named in the Schiff schedule include: Igor Framan, Lev Parnas, Joseph di Genova, Victoria Toensing, Hunter Biden, Burisma Holdings Ltd., Joseph Biden, the Democrat National Committee and even Hillary Clinton. This had to be just a gesture as none of them have been called for testimony.

What does Congress know? Plenty. Back in September, there was some interesting floor presentations on key Ukraine corruption items. Reference the congressional record from September 25, 2019, pages 4 and 5. Ukraine corruption reached Delaware and Ohio, beyond our congresswoman in Miami.

Will America see any real consequence of some of these people anytime soon? Hardly. In case you want to know why, we have to get somewhat technical and in fact we may have to wait on the UK to finish their own legal process prosecuting all things Ihor Kolomoisky and this banking scam involving PrivatBank where that pesky $6 billion went missing. By the way, that bank had to be nationalized by Ukraine in an effort to stabilize and recover some of the monies.

So if you do want to get into the weeds, read on. Courtesy of Kyiv Post.

Ihor Kolomoisky is a Ukrainian oligarch and the former governor of Dnipropetrovsk Oblast. He owns media, steelmaking, ferroalloy, oil and gas assets, as well as luxury real estate, water terminals, and airplanes. All of these assets are part of the informal Privat business group controlled by him and business partner, Gennadiy Bogolyubov. Due to ongoing court cases, the assets are now partially frozen.

However, the freeze was imposed only on those assets directly registered to the billionaire or involved in an a series of alleged schemes to withdraw $5.5 billion dollars from PrivatBank, the country’s largest financial institution.

Other Kolomoisky assets are hidden in offshore or registered on trusted individuals.

Law enforcement agencies aren’t the only ones who want to see the ownership structures of Kolomoisky’s companies. His former business partners are also curious.

Businessman Vadym Shulman has been pursuing Kolomoisky in court since 2015. Earlier, in 2014, another oligarch, Victor Pinchuk, engaged in litigation with Kolomoisky and accused him not only of appropriating his business, but even of murder.

Shulman and Pinchuk are demanding that the ownership structure of the long list of companies registered in offshore jurisdictions be disclosed. These companies own real estate, steel and ferroalloy plants in the United States and Georgia.

None of these companies is directly registered to Kolomoisky. But all of them have common managers, lawyers, and even addresses. According to both businessmen’s lawsuits, they are all controlled by Kolomoisky.

The same group of managers run not only these companies, but also several groups of firms involved in the PrivatBank case.

Panikos Symeou is the managing partner of the Cypriot law firm Symeou & Konnaris LLC. According to its website, this company highly values privacy and trust.

Fugitive Ukrainian businessmen like oligarch Serhiy Kurchenko and former National Bank head Serhiy Arbuzov apparently also appreciate these qualities. Panikos Symeou was the head of their Cypriot firm Sabulong Trading, LTD.

In 2017, this company was among the offshore companies that the Prosecutor General’s Office of Ukraine confiscated $1.3 billion from. They had been stolen from the country by the criminal organization created by ousted former Ukrainian President Viktor Yanukovych.

Ihor Kolomoisky entrusts Panikos Symeou with a much wider list of assets — for example, media, steel factories, tire production companies and water terminals.

Symeou’s role is very clear in the ownership structure of Dnipropetrovsk television channel Pryvat TV Dnipro (Channel 9). Symeou is the trusted individual through whom Kolomoisky owns the channel. 

The ownership structure of Pryvat TV Dnipro, LLC (Channel 9). (Nadiya Burdey/Anti-Corruption Action Center)

Steel business in the US

Panikos Symeou also has a clear role in the ownership structure of steel factory Warren Steel Holdings LLC in the state of Ohio. The company is nominally registered to the offshore firm Halliwel Assets, Inc in the British Virgin Islands. But, in 2015, one of owners of the factory disclosed the names of all its beneficiaries in court.

According to case materials, the factory belongs to three Ukrainian businessmen: Vadym Shulman, Bogolyubov and Kolomoisky. The latter controls the factory through Symeou.

Shulman initiated that court case. In 2001, he bought the derelict factory and relaunched it. Then, in 2006, Bogolyubov and Kolomoisky became its co-owners.

In 2012, Schulman said he began to suspect his partners of fraud. During his own investigation, he discovered that Warren Steel had concluded loan agreements and sales contracts with other companies controlled by Kolomoisky and Bogolyubov on conditions that were unprofitable for the factory.

According to Shulman, his partners burdened the factory with debts to their own companies in order to receive full control over the assets of Warren Steel.

Shulman’s hypothesis was confirmed in August 2014 when Kolomoisky’s representative, Panikos Symeou, agreed to another $25-million loan for Warren Steel Holdings from the company Optima Acquisitions, LLC. That company was also controlled by Kolomoisky, Shulman said. The media repeatedly reported this without providing any evidence.

In 2015, Shulman filed suit against Warren Steel Holdings, LLC, Panikos Symeou, the company Halliwel Assets, Inc and the president of the Warren Steel factory Mordechai Korf.

TRUSTED PERSON № 2: Mordechai Korf

Mordechai Korf is Ihor Kolomoisky’s American business partner and the director of his multiple steel and manganese enterprises in the United States. In particular, Korf was not only the president of the Warren Steel factory, but also the co-owner of Optima Acquisitions LLC, which gave loans to the factory.

Optima Acquisitions is an investment company registered in Delaware, a state that does not disclose firms’ beneficiaries. Korf has run this company since 2008. Optima Acquisition also owns another American company, Optima Specialty Steel, Inc., which owns several steel factories in various U.S. states.

Journalists have previously tied the name Kolomoisky to the Optima group of companies, but this connection was only confirmed during Optima Specialty Steel’s bankruptcy case. According to case materials, Korf, Kolomoisky and Bogolyubov each owned 33 percent of Optima Acquisitions LLC in 2017.

The connections of Ihor Kolomoisky and Mordechai Korf. (Nadiya Burdey/Anti-Corruption Action Center)

At the end of 2017, Optima Specialty Steel completed its plan of reorganization (bankruptcy) and was rebranded as Specialty Steel Works, Inc. The corporate agent was changed as well as the entire leadership of the company.

In an official press release, the company stated that it would continue to manufacture and sell steel products through its four wholly-owned subsidiaries: Michigan Seamless Tube & Pipe, the Niagara LaSalle Corporation, the Corey Steel Company and Kentucky Electric Steel. Each of  these companies owns a factory in the United States.

Michigan Seamless Tube & Pipe predictably owns a factory located in Michigan. The company manufactures seamless cold-drawn pipes for the aerospace, mining, construction, automotive and agricultural industries.

The Niagara LaSalle Corporation owns a factory that manufactures steel parts for automotive, construction, and agricultural machinery in Indiana.

The Corey Steel Company’s factory is located in Cicero, Illinois. It manufactures steel bars.

 

At the end of 2018, another American company, Steel Dynamics, Inc., acquired Kentucky Electric Steel.

Kolomoisky’s tires

In Ukraine, the name Panikos Symeou is not only connected with the business structures of Kurchenko and Kolomoisky’s Dnipro television channel. The Cypriot is also the co-owner of a Ukrainian plant for producing oversized tires through the company Manita Investments Limited.

The beneficiary controller of the tire plant is Dnipro resident Anna Yesipova. One hundred percent of the plant’s shares is the Cypriot company Manita. It, in turn, is owned by another Cypriot company Sykon Secretarial Limited. Fifty percent of the latter belongs to Panikos Symeou.

The Ukrainian Factory of Oversized Tires and a Romanian factory operate under the same brand name and have one website. An excerpt from the State Register of Romania contains the address of company Euro Tyres Manufacturing SRL’s website: www.eurotire.net. The same website also contains the address of the Ukrainian branch, the Ukrainian Factory of Oversized Tires, that owns factory premises.

Therefore, according to the Eurotire website, the factory is part of a large international corporation which manufactures oversized tires for Eurotire’s mining equipment. The representative offices of this company are located in the United States, Kazakhstan, Indonesia, the Philippines, Japan, Ukraine and Russia. The factories that manufacture such tires are only located in Ukraine and Romania.

A screenshot from the EuroTire YouTube channel showing the countries where the company operates. (Youtube/Eurotire)

In particular, the corporation supplied tires for the company Ferrexpo PLC in Ukraine, which is controlled by Ukrainian dollar billionaire Kostyantyn Zhevago. Ferrexpo PLC owns the Ukrainian Poltava Mining and Processing Plant OJSC, which mines iron ore.

EuroTire’s advertising video states the company cooperates with Ferrexpo PLC.

According to a report published on the Euro Tyres website, more than $300 million were invested in this factory in 2007.

As of March 15, 2019 the owner of the factory is the Romanian company Euro Tyres Manufacturing SRL. This company belongs to two other offshore companies: EuroTyre S.A from the British Virgin Islands and the American Euro Tyres Corporation.

But Panikos Symeou is not the only person who ties Kolomoisky to the international Eurotire corporation. There are also two other links. One of them is the oligarch’s business partner, Uri Laber.

TRUSTED PERSON №3: Uriel Tzvi Laber

Uriel Tzvi Laber is an American who has been actively developing business in Ukraine since the 1990s. Laber is especially interested in oil. During 1997-1999, he founded two fuel companies, Mavex LLC and Petroleum-Invest, LLC.

And, in 2010, Laber became a member of the Supervisory Board of Ukrnafta PJSC. As of March 11, 2019, he still holds this position. Laber is also the director of the American company Optima International of Miami, Inc. According to Bloomberg, this company manufactures tires and is s subsidiary of CB PrivatBank PJSC.

And, of course, Laber himself is director of the Eurotire group of companies.

The connections of Ihor Kolomoisky and Uri Laber. (Nadiya Burdey/Anti-Corruption Action Center)

The connections between Eurotire and Kolomoisky don’t stop there. The Ukrainian and offshore Eurotire companies are involved in PrivatBank-related cases.

As of 2019, the Ukrainian plant for producing over-sized tires is the subject of criminal proceeding by the National Anti-Corruption Bureau of Ukraine over the embezzlement of money from CB Privatbank PJSC, allegedly committed by the management and owners of a substantial part of the bank. Prior to the bank’s nationalization in 2016, one of its co-owners was Igor Kolomoisky.

The Ukrainian plant for producing over-sized tires received a loan in the amount of several million dollars from PrivatBank and did not return the money. When the National Bank uncovered problems inside PrivatBank and Kolomoisky committed to restructure its loan portfolio, employees of the bank transferred the debt from 193 existing companies to non-operating, newly-created companies, which did not have sufficient funds to service the loans. In particular, the debts of actually existing assets — like the the oversized tire plant, were transferred to a newly-created company.

Another offshore company, British Virgin Islands-registered Eurotyre S.A., which owns 99 percent of the factory in Romania, is connected to another embezzlement scheme

According to case materials, PrivatBank officials and owners created a criminal organization and, in 2008-2015, withdrew Hr 12,5 billion ($478 million) in the form of loans to 15 Ukrainian companies. Instead of mortgages, these companies transferred contracts for paid goods to the bank.

So in 2014, Ukrainian company Mondial, LLC concluded an agreement with the non-resident Eurotyre S.A. for the purchase of 21,000 tons of natural rubber for $77 million. This contract was created in the form of a mortgage which Mondial transferred to PrivatBank when it received the loan. Therefore, the company Eurotyre S.A. is obliged to transfer rubber worth $77 million to the bank.

In February 2019, the Pechersk District Court of Kyiv granted the Prosecutor General’s Office access to the contract and a number of other documents located at the office of Eurotyre S.A (Vanterpool Plaza, P.O. Box 873, Wickhams Cay I Road, Road Town, Tortola, British Virgin Islands).

The court granted access to documents in criminal proceeding No. 42017000000001823 as of June 6, 2017 “on the fact of creating a criminal organization, as well as operating such an organization and participation in it in order to obtain the cash funds of CB PrivatBank PJSC in especially large volumes during 2008-2016 by former officials of CB PrivatBank PJSC.”

The court’s decision states that former PrivatBank officials involved “owners and managers of a number of business entities, as well as representatives and final beneficiaries of a number of foreign companies that are connected to the bank through individuals” in order to bring the bank to insolvency.

Kolomoisky’s silico-manganese industry 

Kolomoisky’s partners Korf and Laber also operate the oligarch’s ferroalloy business in the U.S. and Georgia.

In 2015, Ukrainian oligarch Viktor Pinchuk pursued Ihor Kolomoisky in the High Court of London.

Pinchuk stated that, in the mid-2000s, he gave Kolomoisky and Bogolyubov money for the purchase of one of the largest iron ore mining companies in Ukraine. But he received neither the company, nor money from them. Pinchuk estimated the profit lost during all these years at $2 billion.

But in January 2016, a few days before court hearing, Pinchuk, Kolomoisky and Bogolyubov reached a peace deal: Kolomoisky pledged to give part of the money from the ferroalloy business to Pinchuk.

The ferroalloy holding includes the Nikopol, Zaporizhzhya and Stakhaniv ferroalloy factories and the Marganets and Ordzhonikidze mining and concentrating combines in Dnipropetrovsk region. In fact, none of these Ukrainian ferroalloy enterprises belong to either  Pinchuk or Kolomoisky.

In 2016, the United States International Trade Commission (USITC) published a presentation on the import of silico-manganese. The report also contains a list of Ukrainian ferroalloy factories. According to the Commission, these companies are controlled by Kolomoisky and Bogolyubov. The report also contains a list of the oligarchs’ other ferroalloy assets located in the United States, Georgia and Australia.

A slide from the 2016 report by the United States International Trade Commission (USITC).

Viktor Pinchuk filed an appeal to a Florida court with a request to disclose the ownership property ownership of Georgian American Alloys, Inc. (Delaware), CC Metals and Alloys, LLC (Delaware), Felman Production, LLC (Delaware), and Felman Trading, Inc. (New Jersey). Although these companies are formally registered in offshore jurisdictions and, accordingly, the companies’ owners are not visible, the directors of all these companies were and remain Kolomoisky’s partners Korf and Laber.

Another manager of the companies Felman Production, LLC, Felman Trading, Inc., and the Euro Tyres Corporation is Robert Powell, the husband of Florida Democratic Representative Debbie Mucarsel-Powell.

In the November 2018 midterm election, Debbie Powell won her seat in the U.S. House of Representatives. That same year, the The Miami Herald reported that the Democrat’s husband had been working as the general lawyer in companies controlled by Ihor Kolomoisky for over 10 years. Robert Powell has earned $695,000 while working for these companies in the past two years.

  • “I have never worked for, represented…or received any payments from Kolomoisky,” Powell stated during his wife’s campaign.

Mordechai Korf confirmed the statement. He said that Powell concluded his contracts and that he did not have any direct relationship with Kolomoisky. According to Korf, Powell left the company in 2017.

The Democrat’s husband submitted companies Felman Trading and Robert Powell PA as the source of his income in his latest financial report in 2017.

However, according to Florida’s official register, he signs reports on behalf of Felman Production, LLC even in 2019.

Symeou, Privat, and water terminals 

Panikos Symeou and Uriel Laber’s entanglements don’t end with factories and the media. They are also tied to Ukrainian water terminals.

In an interview with the Ekonomichna Pravda news site, Igor Kolomoisky mentioned the Borivazh water terminal a few days before the second round of presidential election. The oligarh stated that former national bank chief Valeriya Gontareva was interested in this asset.

The head of the National Bank allegedly wanted to purchase the terminal for Hr 100 million ($3.8 million) and resell it for Hr 250 million ($9.5 million). That is why, Kolomoisky claims, she conducted the nationalization of Privatbank without any formal grounds. That was a violation of his rights, he alleges.

The American corporate investigations firm Kroll, which looked into PrivatBank before nationalization, has effectively refuted this claim. But in this context, the very mention of the terminal is interesting: it has never formally belonged to the oligarch.

The company Borivazh

According to case materials, the property of three companies — the Black Sea Fuel Terminal, the Illichivsk Sea Fishing Port and Borivazh — was re-registered at an underestimated value to three other controlled companies: Optima Trade, Agroterminal Logistic and Dar Torg.

The founders of Dar Torg are Cypriots Panikos Simeou and his partner Christakis Konnaris.

And wasn’t complete strangers who re-registered the property of all three terminals, which was valued in total at Hr 683 million ($26 million). According to the investigation, Anatoliy Tereshchenko, the 73-year-old head and accountant of Optima Trade, and Volodymyr Kigitov, founder of Black Sea Fuel Terminal PJSC at that time, did the re-registering.

Anatoliy Tereshchenko is no stranger in Kolomoisky’s world. He was officially employed at the company Mavex, which was co-owned by Kolomoisky partner Uriel Tzvi Laber until 2007.

Laber has been a member of the Supervisory Board at Ukrnafta PJSC since 2010. Fifty percent of this enterprise belongs to the state, while the other half is owned offshore and controlled by Kolomoisky.

And, of course, companies from this group — which formally do not belong to Kolomoisky — received hundreds of millions of dollars in loans from PrivatBank when it belonged to the oligarch. Borivazh LLC received more than $120 million. , the money was not returned to the creditor, and the property has already been re-registered to another firm.

Agroterminal Logistic also received a loan. This company has already paid Hr 996 million ($38 million) to the National Bank of Ukraine. But this is only a third of the Hr 3.6 billion ($137.4 million) in debt, according to loan agreement No. 120.

Recently, Ihor Kolomoisky explained that fear motivates him to register all his assets to trusted persons or offshores. He is supposedly afraid to disclose the ownership structures of companies because they could then be appropriated by President Petro Poroshenko. But Kolomoisky started registering businesses in offshores long before Poroshenko’s presidency. He started after 2000, during a period of active privatization.

This  publication is the first of an upcoming series of stories on the trusted persons of Ukrainian oligarchs by the pep.org.ua project of the Anti-Corruption Action Center. More information and documents about politically exposed persons and their close associates are available at pep.org.ua.

 

 

 

U.S. Attorney Durham Seized 2 Interesting Blackberries

AG Barr assigned John Durham to investigate the origins of the FBI’s counter-intelligence operation known as Crossfire Hurricane. Durham is working the globe on the investigation and two key people are Joseph Mifsud and Stephan Halper. There may be others that include Alexander Downer, Azra Turk, Seems that Peter Strzok issued two Blackberries to Joseph Mifsud. Durham has those two phones in his possession. You can bet that Durham is working the channels to see who else has FBI issued phones. The FBI loves those phones.

US News on Flipboard by The Epoch Times

Mr. Mifsud, a university professor and well-traveled lecturer, told George Papadopoulos, a Trump campaign adviser, in London in April 2016 that Moscow owned thousands of Hillary Clinton emails. When the news reached the FBI in July, agent Peter Strzok initiated the probe.

Ms. Sidney Power is representing General Michael Flynn as she has added to the Mifsud intrigue with her motion before District Court Judge Emmet G. Sullivan asking him to order the government to turn over the BlackBerrys’ data. The filing lists the two phones’ model number, PIN and SIM card information. She filed a court motion on Monday disclosing the phones’ existence while tying them to Western intelligence.

She told the judge that on Oct. 11 she asked the prosecution for phone data. She was ignored until she sent notification days later that she planned to file the discovery motion.

The motion says: “Michael T. Flynn requests the government be ordered to produce evidence that has only recently come into its possession……… This information is material, exculpatory, and relevant to the defense of Mr. Flynn, and specifically to the “OCONUS LURES” and agents that western intelligence tasked against him likely as early as 2014 to arrange—unbeknownst to him—‘connections’ with certain Russians that they would then use against him in their false claims. The phones were used by Mr. Joseph Mifsud.”

“OCONUS LURES” is an FBI acronym for an operation to lure a person back to the U.S.

Ms. Powell has been filing motions demanding the government turn over exculpatory evidence. She wants to show it was withheld early on, violating Judge Sullivan’s order.

Reacting to the BlackBerry disclosure, Mr. Papadopoulos tweeted: “I lived this spy story. The government’s of the UK, Australia, Italy sent their agents: Mifsud, Downer, Halper, Azra Turk and many more. With the new info on Mifsud’s phones with the DOJ, my story was the one that exposed the greatest spying scandal in history. Downer is next!”

Alexander Downer was the Australian ambassador in London to whom Mr. Papadopoulos relayed the Mifsud gossip. Mr. Downer denies he was a spy. Stephan Halper and Azar Turk were FBI/western intelligence spies assigned to Mr. Papadopoulos in London.

Justice Department spokesperson Kerri Kupec declined to comment on the Flynn motion.

When news broke that Mr. Durham was in Rome, she released a statement:

“As the Department of Justice has previously announced, a team led by U.S. Attorney John Durham is investigating the origins of the U.S. counterintelligence probe of the Trump 2016 presidential campaign. Mr. Durham is gathering information from numerous sources, including a number of foreign countries. At Attorney General Barr’s request, the President has contacted other countries to ask them to introduce the Attorney General and Mr. Durham to appropriate officials.” More here for full story and context.

*** One other detail from the Daily Beast due to AG Barr’s travels to Rome with John Durham was to listen to a taped deposition of Joseph Mifsud. Meanwhile:

The Italian intelligence community had Mifsud on its radar for some years before he got involved in the Trump campaign’s troubles. His affiliations with both the Link University of Rome and London Center of International Law Practice—both often affiliated with Western diplomacy and foreign intelligence agencies—made him an easy target. So did the slew of apartments he owned in Malta that are allegedly tied to a racket involving Russians buying Maltese passports for cheap.

SF: Spy, Leave the Room Key at the Front Desk

This is a movie thing for sure not only that happened in San Francisco but went to Columbus, Georgia. China is operating with hired spies in the United States and Beijing is overtly stealing and buying from the United States.

Northern California Resident Charged with Acting as an Illegal Agent

American Citizen Arrested for Acting as an Illegal Foreign Agent of the People’s Republic of China

The Department of Justice unsealed charges today in a criminal complaint charging Xuehua Peng, also known as Edward Peng, 56, for acting as an illegal foreign agent in delivering classified United States national security information to officials of the People’s Republic of China’s Ministry of State Security (MSS).

“According to the allegations, Peng conducted numerous dead drops here in the United States on behalf of Chinese intelligence officers and delivered classified information to them in China.  His arrest exposes and disrupts an operation by those Chinese intelligence officers to collect such information without having to step foot in this country,” said Assistant Attorney General of National Security John C. Demers.  “Coming on top of our many recent Chinese espionage cases—involving both national defense and intellectual property information—this case illustrates the seriousness of Chinese espionage efforts and the determination of the United States to thwart them.”

“The conduct charged in this case alleges a combination of age-old spycraft and modern technology,” said U.S. Attorney David L. Anderson for the Northern District of California.  “Defendant Xuehua (Edward) Peng is charged with executing dead drops, delivering payments, and personally carrying to Beijing, China, secure digital cards containing classified information related to the national security of the United States.”  U.S. Attorney Anderson further stated, “The charges announced today provide a rare glimpse into the secret efforts of the People’s Republic of China to obtain classified national security information from the United States and the battle being waged by our intelligence and law-enforcement communities to protect our people, our ideas, and our national defense.”

“The FBI, along with our partners, will aggressively pursue foreign agents operating illegally in the United States attempting to steal our country’s most sensitive information.” said Assistant Director John Brown of the Counterintelligence Division. “This case should serve as a warning to the government of China as well as any other foreign adversary looking to replicate this activity. The FBI, and our intelligence and law enforcement partners, will not waiver.  We will bring all of our resources to bear to defeat hostile foreign intelligence services and protect our nation’s security. I would like to thank FBI counterintelligence personnel throughout the country who tirelessly worked this investigation over the course of many years, particularly those personnel in our Counterintelligence and San Francisco Divisions.”

“Putting an end to Mr. Peng’s alleged actions are an important and significant step in dismantling the PRC’s overall efforts against our country,” said Special Agent in Charge Bennett of the FBI San Francisco Division.  “Our message is clear: the FBI, along with our intelligence community partners, will pursue foreign adversaries -at any level of an operation- and disrupt their malicious activity when it is detected.”

According to the complaint filed Sept. 24, 2019, and unsealed this morning, Peng, 56, a U.S. citizen living in Hayward, California, acted at the direction and under the control of MSS officials in China in retrieving classified information passed to him by a confidential human source (the source), leaving money behind for the source, or both.  His activities included one dry run and at least five successful “dead drops” between October 2015 and July 2018.  The dead drops occurred in the Bay Area and in Columbus, Georgia.

The table below summarizes the allegations in the complaint about each successful dead drop, including the date of the dead drop, the location of the dead drop, what Peng left in the hotel room, and what Peng retrieved from the hotel:

Date

Location

Peng Left in the Hotel

Peng Retrieved from the Hotel

6/23/2015 Newark, CA n/a Empty package (dry run)
10/24/2015 Newark, CA n/a SD card
4/23/2016 Oakland, CA $20,000 SD card
7/1/2017 Columbus, GA $20,000 n/a
9/9/2017 Columbus, GA $10,000 SD card
6/30/2018 Columbus, GA $20,000 SD card

In the June 23, 2015, “dry run,” no information or money was exchanged.  Instead, an empty package was left by the source for Peng at the front desk of a hotel, and Peng later retrieved it.  In the first successful dead drop, Peng retrieved a package containing an SD card from the front desk of a hotel.  In each of the other four successful dead drops, Peng booked hotel rooms and left a room key to be picked up by the source.  Peng then left envelopes of cash in the room, retrieved a secure digital card left there by the source, or both.

In each instance in which he retrieved an SD card from the hotel room, Peng then traveled to Beijing, China, shortly thereafter.  The complaint further alleges that Peng was told by an MSS handler, in coded language, where and when to conduct the dead drops, how much money to leave in exchange for the SD cards, and when to return to China to deliver them.  As alleged in the Complaint, the FBI secretly filmed Peng conducting some of the dead drops, and intercepted Peng’s telephone conversations with his MSS handlers in China.

On Friday, Sept. 27, 2019, Peng was arrested at his residence in Hayward and made his initial appearance in federal court in San Francisco before U.S. Magistrate Judge Joseph C. Spero. Magistrate Judge Spero ordered Peng held without bond pending further proceedings. Peng’s next hearing has been scheduled for Oct. 2, 2019, at 10:30 am before the Honorable Jacqueline Corley, 450 Golden Gate Ave., 15th Floor, for a detention hearing and identification of counsel.

A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Peng faces a maximum sentence of 10 years, and a fine of $250,000 for acting as an agent of a foreign government without notifying the United States Attorney General in violation of 18 U.S.C. §  951.  However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

This case is being prosecuted by the Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California and the Counterintelligence and Export Control Section of the Department of Justice, National Security Division.  The prosecution is the result of an investigation by the FBI.

 

The Ukraine Thing will Soon Lead to Cyprus, Meanwhile

It is a must to fully comprehend how far and wide the choreography was on the Russian collusion thing. Still much of that is unresolved, hence the reason for AG Barr spending a good deal of time in Europe, while John Durham is working his side of the case.
Then there was the massive anti-Kavanaugh Supreme Court thing such that two books were published describing that epic yet failed campaign with hundreds of players inside and outside of government.
Now we have Ukraine percolating while other embers are burning larger that include many of the usual players and others not so well known. This will eventually lead to Cyprus which is a well know hub for money laundering and shell companies.

The players and choreography here as well is a nasty monster.

Meanwhile…
Meet Karen Greenaway.

Recovery of assets stolen by Yanukovych regime: FBI admit they could not return even single ... She lived in Russia before becoming an FBI agent.

Lil miss Karen was a long-timer at the FBI as a case agent and supervisor managing and investigating crimes of money-laundering, financial crimes and international corruption. For context, she worked on Transnational Organized Crime in the former Soviet Union, Middle East, Africa and Asia. She speaks fluent Russian.
Having now left the FBI, she has been still quite busy. In 2018, she was a keynote speaker on those topics at a conference in Copenhagen. She was also included in the panel at the IACC in Seoul in 2020. Here she even mentions a ‘trail of blood that lead to the knife for the murder investigation’. Humm okay.

She must have impressed in her work at the FBI, as later she was also a top investigator on all things Paul Manafort. It is important to go back to 2013 when Viktor Yanukovych, the former president of Ukraine fled to Russia. It is thought he and his team, some that also successfully fled, while others did not pilfered billions in corruption schemes. Ms. Greenaway, at the FBI during that time, has the goods, but to what end is uncertain.

As John Soloman of The Hill published due to his stellar work, the Obama administration sent an envoy to Ukraine with an interesting list of people and companies that were not to be investigated, one of them being Burisma. But there is yet another operation that is much more influential and important and that is AntAC. Karen was investigating the Firtash case in Austria back in 2016 as she explained at a AntAC conference in December of 2016.

Now it gets even more interesting. Seems AntAC did not appreciate Solomon’s reporting. Oh, it must be noted that AntAC is a George Soros operation well know by the Obama White House and Victoria Nuland from the State Department.

Just this past February, there was an interesting briefing in the Dirksen Senate Office building dealing with ‘asset recovery’ in Eurasia. Karen Greenaway was there too. A large part of the matter was not only Ukraine but monies in the realm of an estimate trillion dollars, some of which belong to the U.S. government (read, taxpayer).

Greenaway recently retired, and Soros’s AntAC soon after announced she was joining its supervisory board.

It is all complicated and it really is complicated if you read the summary below. But….this was all going on during the Obama administration with John Kerry as Secretary of State.

This is long, but a must read:

The opinion article, which was published on March 26 on The Hill media platform, contained a number of allegations regarding AntAC. We would like to offer our fact check and explanations.

Quote from the opinion article: While the 2016 presidential race was raging in America, Ukrainian prosecutors ran into some unexpectedly strong headwinds as they pursued an investigation into the activities of a nonprofit in their homeland known as the Anti-Corruption Action Centre (AntAC).

The focus on AntAC was part of a larger probe by Ukraine’s Prosecutor General’s Office into whether $4.4 million in U.S. funds to fight corruption inside the former Soviet republic had been improperly diverted.

The prosecutors soon would learn the resistance they faced was blowing directly from the U.S. Embassy in Kiev, where the Obama administration took the rare step of trying to press the Ukrainian government to back off its investigation of both the U.S. aid and the group.”

The criminal case into alleged embezzlement of U.S. technical assistance of 4 million USD  of the US taxpayers money which had to be spent on the PGO’s reforms was opened on March 16, 2016 by the Prosecutor General’s Office under the leadership of the previous Prosecutor General Viktor Shokin.

On April 4, 2016 the PGO received the letter from the U.S. Embassy.

Yuriy Lutsenko, who was appointed to the position of the Prosecutor General in May 2016, fully agreed that the allegations were groundless, he even said that they ‘simply dishonor the Prosecutor General’s Office of Ukraine’.

As soon as Lutsenko was appointed, the case was closed in May 2016 by the PGO.

“Yuri Lutsenko, widely regarded as a hero in the West for spending two years in prison after fighting Russian aggression in his country, was named prosecutor general and invited to meet new U.S. Ambassador to Ukraine Marie Yovanovitch.”

Firstly, Yuri Lutsenko is widely regarded in the West as “hero” for his drunken and disorderly conduct in Frankfurt airport, where he was detained by the police in 2009 while serving as a Minister of Interior Affairs of Ukraine.

Secondly, Yuri Lutsenko was sentenced to four years in prison in early 2012, this was two years before Russian aggression that started in 2014. Allegations against Lutsenko were for embezzlement of funds of the Ministry of Interior under his leadership and abuse of office resulting in illicit allocation of state-owned apartment to his former driver, facilitating illicit social security payments to this person and illicit allocation of funds for the celebration of the Militia (police) day in 2008-2009. He was charged with causing damages of $125,000 to the state. Lutsenko submitted a claim to the European Court of Human Rights and in 2012 the court ruled that Lutsenko’s arrest and subsequent detention violated the European Convention on Human Rights.

“Lutsenko told me he was stunned when the ambassador “gave me a list of people whom we should not prosecute.” The list included a founder of the AntAC group and two members of Parliament who vocally supported the group’s anti-corruption reform agenda, according to a source directly familiar with the meeting.”

During the first possible meeting of Madam Ambassador with Lutsenko, which could not have happened earlier than late August 2016, there were no ongoing criminal prosecutions against AntAC Head of Board Vitaliy Shabunin.

The criminal case against AntAC on alleged embezzlement of the U.S. taxpayers money was already closed for around 3 months.

The criminal investigation into Shabunin’s punch of a bully-provocateur, which took place on June 8, 2017, was triggered in summer 2017. There is an ongoing trial in this case in the court.

It turns out the group that Ukrainian law enforcement was probing was co-funded by the Obama administration and liberal mega-donor George Soros.”

AntAC was founded in the end of 2011 by Vitaliy Shabunin and Daria Kaleniuk, who formerly were activists of youth NGO “Foundation of Regional Initiatives”. In 2012 AntAC was functioning without any financial support as a volunteer project of its founders.

In 2013 the NGO received first funding as a subgrant from the All-Ukrainian Network of People Living with HIV/AIDs supported by the Global Fund to Fight AIDS, Tuberculosis and Malaria for the public monitoring of public procurement of medications in Ukraine.

“In the end, no action was taken against AntAC and it remains thriving today.”

This is not true. The action was taken in May 2016 – the PGO closed the criminal case “due to the absence of criminal offence.” However, no-one from PGO officers who abused the power triggering criminal investigation on AntAC was punished disregarding organization’s requests. Information PGO obtained through the course of the investigation (banking statements) was later repeatedly leaked to media with the goal to discredit the organization.

“After the Obama Justice Department launched its Kleptocracy Asset Recovery Initiative a decade ago to prosecute corruption in other countries, the State Department, Justice Department and FBI outsourced some of its work in Ukraine to groups funded by Soros.”

In December 2013 in the middle of the Revolution of Dignity in Ukraine AntAC launched a campaign on freezing foreign assets of Ukraine’s former President Yanukovych and his associates. AntAC was running a webpage yanukovich.info, which gathered all publicly available facts about corrupt assets of Yanukovych’s allies and mapped the role of Western lawyers, banks and companies in covering and enabling grand corruption. The campaign was funded via crowdfunding from concerned citizens and was not financially supported by neither government of the U.S. nor Soros foundation.

Within the campaign AntAC reached out to the law enforcement agencies in the EU, Switzerland, the U.S. with request to investigate foreign assets of Yanukovych and his associates. DoJ Kleptocracy Asset Recovery initiative was part of a long list of foreign law enforcement agencies AntAC reached out in December 2013 – February 2014.

“One key U.S. partner was AntAC, which received 59 percent (or $1 million) of its nearly $1.7 million budget since 2012 from U.S. budgets tied to State and Justice, and nearly $290,000 from Soros’s International Renaissance Foundation, according to the group’s donor disclosure records.”

Apart from the projects, funded by abovementioned donors U.S. government and Open Society foundations, since 2013 AntAC was funded by a wide range of other donors, including:

  • The Global Fund via All-Ukraine Charitable Organization “All-Ukraininan Network of People living with HIV/AIDS”
  • The Government of the Kingdom of the Netherlands via Matra program
  • The Embassy of the United Kingdom
  • The Ministry of Foreign Affairs of the Czech Republic
  • European Union
  • Donations from individuals/legal entities

“The U.S.-Soros collaboration was visible in Kiev. Several senior Department of Justice (DOJ) officials and FBI agents appeared in pictures as participants or attendees at Soros-sponsored events and conferences.”

Right after the victory of the Revolution of Dignity and runaway of former President Yanukovych from Ukraine, AntAC activists were invited to the meetings with law enforcement officers from various countries willing to help Ukraine in tracing proceeds of corruption of ousted president Yanukovych. AntAC also met with representatives from DOJ and shared with them all publicly available information the organization gathered on corrupt officials under Yanukovych regime.

Recovery of proceeds of corruption of Yanukovych and his associates was one of the key priorities of work of AntAC, which was organizing specialized asset recovery conference in Ukraine in 2014, 2015, 2016. Law enforcement officers from Ukraine and abroad were invited to these conferences, including Karen Greenaway. Apart from DOJ officials  there were Ukrainian (including PGO), Italian, British, Swiss law enforcement officers speaking and participating at AntAC asset recovery conferences.

“Greenaway recently retired, and Soros’s AntAC soon after announced she was joining its supervisory board.”

In February 2019 Karen Greenaway agreed to join AntAC Supervisory Board after she will finish her other professional obligations.

AntAC Supervisory Board membership is a non-paid commitment from distinguished professionals who care about Ukraine and countering grand political corruption. Among AntAC Supervisory Board members there are Francis Fukuyama from Stanford University, Giovanni Kessler, former head of the EU Anti-Fraud Office, Oliver Bullough, British author and investigative journalists, Oleksa Shalayskyi, head of Nashi Groshi investigative project in Ukraine.

“Senior U.S. law enforcement officials confirmed to me that the early kleptocracy collaborations inside Ukraine led to highly visible U.S. actions against the oligarch Dmitri Firtash, a major target of the Soros group, and Manafort. Firtash is now represented by former Hillary Clinton lawyer Lanny Davis and former U.S. Attorney Dan Webb.”

Dmitri Firtash was never a major target of the Anti-corruption Action Centre.

AntAC collects publicly available evidence of alleged corruption and money laundering of all oligarchs in Ukraine, as well as all top corrupt officials. AntAC has been doing this under the regime of ousted president Yanukovych and continues to do that under the new government leaded by President Poroshenko since spring 2014.

“Ukrainian NGO Anticorruption Action Centre (AntAC) petitioned the United States Justice Department on behalf of Ukrainian civil society to dedicate the nearly $3 million in forfeited and seized assets allegedly laundered by former Ukrainian Prime Minister Pavlo Lazarenko, to creating an anti-corruption training facility,” a 2015 foundation document stated.

In 2013 AntAC submitted a petition to the DoJ with request to repatriate $250mln proceeds of corruption of Pavlo Lazarenko, a former Prime Minister of Ukraine, convicted in the US for money laundering back in 2006. Since 2004, the U.S. government started in rem forfeiture procedure aiming at recovery of proceeds of crime. The procedure is still pending.

In the petition supported by more than 10 civil society organizations AntAC called the US government to refrain from repatriation of stolen assets back to the corrupt government of Ukraine at that time headed by Yanukovych, which could steal them again. AntAC called the US Government to consider the success story of repatriating proceeds of corruption to Kazakhstan, where  independent BOTA foundation was set up for the repatriation of proceeds of corruption. In 2015, AntAC updated the petition given the abrupt changes in the country and emerged news in media claiming that Lazarenko’s funds were about to be confiscated by the DoJ.

“Spokespersons for AntAC and Open Society Foundations did not respond to repeated requests for comment.”

AntAC did not receive any requests for the comments by John Solomon following recent Lutsenko’s interview. The only request from him to provide answers to the questions was received back in October 2018 (six months before publication of Lutsenko’s interview). At that time, AntAC did not provide any response to Solomon after the background checks on him. AntAC became aware of John Solomon’s controversial reputation in American media for spreading manipulative and biased messages. For instance, last year, the staffers of the Hill expressed their concerns over Solomon’s biased reporting. AntAC was rightfully concerned that our answers would be misused and manipulated by Solomon.

 

 

 

Under Obama, the Russians Breached FBI Communications

So, at the time we had Comey, Mueller, Brennan, Clapper, Holder, Lynch, Rice, Power, Monaco, Donilon, McDonough, Rhodes and more.

Anyone remember when there was a pile of Russian spies that Obama expelled and traded? Remember at the very end of the Obama presidency when he expelled another pile of Russians from 3 locations and closed Russian dachas?

A big question remains that has yet to be answered and that is why did the Obama administration wait so long to impose a consequence?

Okay, well sit back this is a long read but it for sure explains the way too casual approach by Obama to Russia.

Simply put, the entire Obama administration and those democrats in congress had to be really embarrassed. With all the later Russian collusion stuff, that operation had to be a huge head-fake cover-up thing.

Whew what a mess. The Russians punked the FBI and that hurt America’s national security and policy badly…so we dispatched Hillary to do that Russian reset with that pesky red button.

Okay, here we go….

Russia carried out a ‘stunning’ breach of FBI communications system, escalating the spy game on U.S. soil

YahooNews: On Dec. 29, 2016, the Obama administration announced that it was giving nearly three dozen Russian diplomats just 72 hours to leave the United States and was seizing two rural East Coast estates owned by the Russian government. As the Russians burned papers and scrambled to pack their bags, the Kremlin protested the treatment of its diplomats, and denied that those compounds — sometimes known as the “dachas” — were anything more than vacation spots for their personnel.

The Obama administration’s public rationale for the expulsions and closures — the harshest U.S. diplomatic reprisals taken against Russia in several decades — was to retaliate for Russian meddling in the 2016 presidential election. But there was another critical, and secret, reason why those locations and diplomats were targeted.

Both compounds, and at least some of the expelled diplomats, played key roles in a brazen Russian counterintelligence operation that stretched from the Bay Area to the heart of the nation’s capital, according to former U.S. officials. The operation, which targeted FBI communications, hampered the bureau’s ability to track Russian spies on U.S. soil at a time of increasing tension with Moscow, forced the FBI and CIA to cease contact with some of their Russian assets, and prompted tighter security procedures at key U.S. national security facilities in the Washington area and elsewhere, according to former U.S. officials. It even raised concerns among some U.S. officials about a Russian mole within the U.S. intelligence community.

“It was a very broad effort to try and penetrate our most sensitive operations,” said a former senior CIA official.

American officials discovered that the Russians had dramatically improved their ability to decrypt certain types of secure communications and had successfully tracked devices used by elite FBI surveillance teams. Officials also feared that the Russians may have devised other ways to monitor U.S. intelligence communications, including hacking into computers not connected to the internet. Senior FBI and CIA officials briefed congressional leaders on these issues as part of a wide-ranging examination on Capitol Hill of U.S. counterintelligence vulnerabilities.

These compromises, the full gravity of which became clear to U.S. officials in 2012, gave Russian spies in American cities including Washington, New York and San Francisco key insights into the location of undercover FBI surveillance teams, and likely the actual substance of FBI communications, according to former officials. They provided the Russians opportunities to potentially shake off FBI surveillance and communicate with sensitive human sources, check on remote recording devices and even gather intelligence on their FBI pursuers, the former officials said.

“When we found out about this, the light bulb went on — that this could be why we haven’t seen [certain types of] activity” from known Russian spies in the United States, said a former senior intelligence official.

The compromise of FBI systems occurred not long after the White House’s 2010 decision to arrest and expose a group of “illegals” – Russian operatives embedded in American society under deep non-official cover – and reflected a resurgence of Russian espionage. Just a few months after the illegals pleaded guilty in July 2010, the FBI opened a new investigation into a group of New York-based undercover Russian intelligence officers. These Russian spies, the FBI discovered, were attempting to recruit a ring of U.S. assets — including Carter Page, an American businessman who would later act as an unpaid foreign policy adviser to Donald Trump’s 2016 presidential campaign.

The breaches also spoke to larger challenges faced by U.S. intelligence agencies in guarding the nation’s secrets, an issue highlighted by recent revelations, first published by CNN, that the CIA was forced to extract a key Russian asset and bring him to the U.S. in 2017. The asset was reportedly critical to the U.S. intelligence community’s conclusion that Russian President Vladimir Putin had personally directed the interference in the 2016 presidential election in support of Donald Trump.

Yahoo spoke about these previously unreported technical breaches and the larger government debates surrounding U.S. policies toward Russia with more than 50 current and former intelligence and national security officials, most of whom requested anonymity to discuss sensitive operations and internal discussions. While the officials expressed a variety of views on what went wrong with U.S.-Russian relations, some said the United States at times neglected to appreciate the espionage challenge from Moscow, and paid a significant price for a failure to prioritize technical threats.

“When I was in office, the counterintelligence business was … focused entirely on its core concern, which is insider threats, and in particular mole hunting,” said Joel Brenner, the head of U.S. counterintelligence and strategy from 2006 to 2009. “This is, in fact, the core risk and it’s right that it should be the focus. But we were neither organized nor resourced to deal with counterintelligence in networks, technical networks, electronic networks.”

The discovery of Russia’s newfound capacity to crack certain types of encryption was particularly unnerving, according to former U.S. officials.

“Anytime you find out that an adversary has these capabilities, it sets off a ripple effect,” said a former senior national security official. “The Russians are able to extract every capability from any given technology. … They are singularly dangerous in this area.”

The FBI’s discovery of these compromises took place on the heels of what many hoped would be a breakthrough between Washington and Moscow — the Obama administration’s 2009 “reset” initiative, which sought to improve U.S.-Russia relations. Despite what seemed to be some initial progress, the reset soon went awry.

In September 2011, Vladimir Putin announced the launch of his third presidential campaign, only to be confronted during the following months by tens of thousands of protesters accusing him of electoral fraud. Putin, a former intelligence officer, publicly accused then-Secretary of State Hillary Clinton of fomenting the unrest.

It was around this time that Putin’s spies in the United States, operating under diplomatic cover, achieved what a former senior intelligence official called a “stunning” technical breakthrough, demonstrating their relentless focus on the country they’ve long considered their primary adversary.

That effort compromised the encrypted radio systems used by the FBI’s mobile surveillance teams, which track the movements of Russian spies on American soil, according to more than half a dozen former senior intelligence and national security officials. Around the same time, Russian spies also compromised the FBI teams’ backup communications systems — cellphones outfitted with “push-to-talk” walkie-talkie capabilities. “This was something we took extremely seriously,” said a former senior counterintelligence official.

The Russian operation went beyond tracking the communications devices used by FBI surveillance teams, according to four former senior officials. Working out of secret “listening posts” housed in Russian diplomatic and other government-controlled facilities, the Russians were able to intercept, record and eventually crack the codes to FBI radio communications.

Russians leave country retreats in the U.S., ordered out ...

Some of the clandestine eavesdropping annexes were staffed by the wives of Russian intelligence officers, said a former senior intelligence official. That operation was part of a larger sustained, deliberate Russian campaign targeting secret U.S. government communications throughout the United States, according to former officials.

The Spy Next Door: What Went On in Russia's Shuttered U.S ...

The two Russian government compounds in Maryland and New York closed in 2016 played a role in the operation, according to three former officials. They were “basically being used as signals intelligence facilities,” said one former senior national security official.

Russia to U.S.: Return Seized Diplomatic Compounds, or Else

Russian spies also deployed “mobile listening posts.” Some Russian intelligence officers, carrying signals intelligence gear, would walk near FBI surveillance teams. Others drove vans full of listening equipment aimed at intercepting FBI teams’ communications. For the Russians, the operation was “amazingly low risk in an angering way,” said a former senior intelligence official.

The FBI teams were using relatively lightweight radios with limited range, according to former officials. These low-tech devices allowed the teams to move quickly and discreetly while tracking their targets, which would have been more difficult with clunkier but more secure technology, a former official said. But the outdated radios left the teams’ communications vulnerable to the Russians. “The amount of security you employ is the inverse of being able to do things with flexibility, agility and at scale,” said the former official.

A former senior counterintelligence official blamed the compromises on a “hodgepodge of systems” ineffective beyond the line of sight. “The infrastructure that was supposed to be built, they never followed up, or gave us the money for it,” said the former official. “The intelligence community has never gotten an integrated system.”

The limitations of the radio technology, said the former senior officials, led the FBI’s surveillance personnel to communicate on the backup systems.

“Eventually they switched to push-to-talk cellphones,” said a former counterintelligence executive. “The tech guys would get upset by that, because if they could intercept radio, they might be able to intercept telephones.”

That is indeed what happened. Those devices were then identified and compromised by Russian intelligence operatives. (A number of other countries’ surveillance teams — including those from hostile services — also transitioned from using radios to cellphones during this time, noted another former official.)

U.S. intelligence officials were uncertain whether the Russians were able to unscramble the FBI conversations in real time. But even the ability to decrypt them later would have given the Russians critical insights into FBI surveillance practices, including “call signs and locations, team composition and tactics,” said a former intelligence official.

U.S. officials were also unsure about how long the Russians had been able to decipher FBI communications before the bureau realized what was happening. “There was a gap between when they were really onto us, and when we got onto them,” said a former senior intelligence official.

Even after they understood that the Russians had compromised the FBI teams’ radios, U.S. counterintelligence officials could not agree on how they had done it. “The intel reporting was they did break our codes or got their hands on a radio and figured it out,” said a former senior intelligence official. “Either way, they decrypted our comms.”

Officials also cautioned, however, that the Russians could only crack moderately encrypted communications, not the strongest types of encryption used by the U.S. government for its most sensitive transmissions. It was nonetheless “an incredible intelligence success” for the Russians, said the former senior official.

While the Russians may have developed this capability by themselves, senior counterintelligence officials also feared that someone from within the U.S. government — a Russian mole — may have helped them, said former officials. “You’re wondering, ‘If this is true, and they can do this, is this because someone on the inside has given them that information?’’ said another former senior intelligence official.

Russia has a clear interest in concealing how it gets its information, further muddying the waters. According to a former senior CIA officer who served in Moscow, the Russians would often try to disguise a human source as a technical penetration. Ultimately, officials were unable to pinpoint exactly how the Russians pulled off the compromise of the FBI’s systems.

Mark Kelton, who served as the chief of counterintelligence at the CIA until he retired in 2015, declined to discuss specific Russian operations, but he told Yahoo News that “the Russians are a professionally proficient adversary who have historically penetrated every American institution worth penetrating.”

This remains a core worry for U.S. spy hunters. The number of ongoing espionage investigations into U.S. government personnel — at the CIA, the FBI and elsewhere — including those potentially recruited by Russia, “is not a little, it’s a lot,” said another former senior counterintelligence official.

Once the compromises of FBI communications devices were confirmed, U.S. officials scrambled to minimize the exposure of mobile surveillance team operations, quickly putting countermeasures in place, according to former senior officials. There was a “huge concern” about protecting the identities of the individuals on the teams — an elite, secret group — said the former senior counterintelligence official. U.S. officials also conducted a damage assessment and repeatedly briefed select White House officials and members of Congress about the compromise.

After the FBI discovered that its surveillance teams’ cellphones had been compromised, they were forced to switch back to encrypted radios, purchasing different models, according to two former officials. “It was an expensive venture,” said one former counterintelligence official.

But the spying successes went both ways. The U.S. intelligence community collected its own inside information to conclude that the damage from the compromises had been limited, partly due to the Russians’ efforts to keep their intelligence coup secret, according to a former senior intelligence official. “The Russians were reticent to take steps [that might reveal] that they’d figured it out,” the former senior official said.

Even so, the costs to U.S. intelligence were significant. Spooked by the discovery that its surveillance teams’ communications had been compromised, the FBI worried that some of its assets had been blown, said two former senior intelligence officials. The bureau consequently cut off contact with some of its Russian sources, according to one of those officials.

At the time of the compromise, some of the FBI’s other Russian assets stopped cooperating with their American handlers. “There were a couple instances where a recruited person had said, ‘I can’t meet you anymore,’” said a former senior intelligence official. In a damage assessment conducted around 2012, U.S. intelligence officials concluded the events may have been linked.

The impact was not limited to the FBI. Alerted by the bureau to concerns surrounding Russia’s enhanced interception capabilities, the CIA also ceased certain types of communications with sources abroad, according to a former senior CIA official. The agency “had to resort to a whole series of steps” to ensure the Russians weren’t able to eavesdrop on CIA communications, the former senior official said. There was a “strong hint” that these newly discovered code-breaking capabilities by Russia were also being used abroad, said another former senior intelligence official.

The CIA has long been wary of Russian spies’ eavesdropping efforts outside of the United States, especially near U.S. diplomatic facilities. U.S. officials have observed Russian technical officers repeatedly walking close to those compounds with packages in their hands, or wearing backpacks, or pushing strollers, or driving by in vehicles — all attempts, U.S. officials believe, to collect information on the different signals emanating from the facilities. While the tools used by the Russians for these activities were “a bit antiquated,” said a former senior CIA official, they were still a “constant concern.”

It’s not unusual for intelligence officers operating from diplomatic facilities, including the United States’s own operatives, to try and intercept the communications of the host nation. “You had to find ways to attack their surveillance,” said Rolf Mowatt-Larssen, former head of counterintelligence at the Department of Energy and a former CIA officer who first served in Moscow in the 1980s. “The Russians do everything in the U.S. that we did in Moscow.”

Indeed, the focus on cracking radio communications was no different.

“We put extraordinary effort into intercepting and monitoring the FSB surveillance radio networks for the purpose of understanding whether our officers were under surveillance or not,” said another former senior CIA officer who also served in Moscow.

The discovery of the Russians’ new code-breaking capabilities came at a time when gathering intelligence on Russia and its leaders’ intentions was of particular importance to the U.S. government. U.S. national security officials working on Russia at the time received rigorous security training on how to keep their digital devices secure, according to two former senior officials. One former U.S. official recalled how during the negotiations surrounding the reset, NSC officials, partially tongue in cheek, “would sometimes say things on the phone hoping [they] were communicating things to the Russians.”

According to a former CIA official and a former national security official, the CIA’s analysts often disagreed about how committed Russia was to negotiations during the attempted reset and how far Putin would go to achieve his strategic aims, divergences that confused the White House and senior policy makers.

“It caused a really big rift within the [National Security Council] on how seriously they took analysis from the agency,” said the former CIA official. Senior administration leaders “went along with” some of the more optimistic analysis on the future of U.S.-Russia relations “in the hopes that this would work out,” the official continued.

Those disagreements were part of a “reset hangover” that persisted, at least for some inside the administration, until the 2016 election meddling, according to a former senior national security official. Those officials clung to the hope that Washington and Moscow could cooperate on key issues, despite aggressive Russian actions ranging from the invasion of Ukraine to its spying efforts.

“We didn’t understand that they were at political war with us already in the second term once Putin was reelected and Obama himself was reelected,” said Evelyn Farkas, the former deputy assistant secretary of defense for Russia, Ukraine, and Eurasia during the Obama administration.

As high-level hopes for the U.S.-Russia “reset” withered, concerns about the threat of Russian spying made their way to Capitol Hill. Top officials at the FBI and CIA briefed key members of Congress on counterintelligence issues related to Russia, according to current and former U.S. officials. These included briefings on the radio compromises, said two former senior officials.

Mike Rogers, a former Republican lawmaker from Michigan who chaired the House Permanent Select Committee on Intelligence from 2011 to 2015, alluded to counterintelligence concerns at a conference earlier this year in Washington, D.C.

One of those concerns was a massive intelligence failure related to the secret internet-based communications system the CIA used to communicate with agents. The extent of that failure, first reported publicly by Yahoo News in 2018, got the attention of Congress earlier.

But the problems were broader than that issue, according to Rogers.

“Our counterintelligence operations needed some adjustments,” said Rogers, adding that he and his Democratic counterpart from Maryland, Dutch Ruppersberger, requested regular briefings on the subject from agency representatives. “We started out monthly until we just wore them out, then we did it quarterly to try to make sure that we had the right resources and the right focus for the entire community on counter[intelligence].”

Rogers later told Yahoo News that his request for the briefings had been prompted by “suspected penetrations, both physical and technical, which is the role of those [Russian and Chinese] intelligence services,” but declined to be more specific.

The former committee chairman said he wanted the intelligence community to make counterintelligence a higher priority. “Counterintelligence was always looked at as the crazy uncle at the party,” he said. “I wanted to raise it up and give it a robust importance.”

The briefings, which primarily involved counterintelligence officials from the FBI and CIA and were limited to the committee leadership and staff directors, led to “some useful inquiries to help focus the intelligence community,” Rogers said. The leaders of the Senate Select Committee on Intelligence were also included in some of the inquiries, according to Rogers and a current U.S. government official.

Spokespeople for the current House and Senate intelligence committees did not respond to a request for comment. The FBI and CIA declined to comment. The Russian Embassy in Washington, D.C. did not respond to a request for comment.

The briefings were designed to “get the counterintelligence house in order,” said Jamil Jaffer, senior counsel at the House intelligence committee from 2011 to 2013, and to ensure that Congress and the intelligence agencies were “on the same page” when it came to such matters. “There were some concerns about what the agencies were doing, there were some concerns about what Congress knew, and all of these issues, of course, had China-Russia implications.”

Rogers and Jaffer declined to provide further details about what specific counterintelligence issues the committee was addressing, but other former officials indicated that worries weren’t limited to the compromise of FBI radio systems. Senior U.S. officials were contemplating an even more disturbing possibility: that the Russians had found a way to penetrate the communications of the U.S. intelligence community’s most sensitive buildings in and around Washington, D.C.

Suspected Russian intelligence officers were seen conspicuously loitering along the road that runs alongside the CIA’s headquarters, according to former senior intelligence officials. “Russian diplomats would be sitting on Route 123, sometimes in cars with diplomatic plates, other times not,” a former senior intelligence executive said. “We thought, they’re out doing something. It’s not just taking down license plates; those guys are interrogating the system.”

Though this behavior dated back at least to the mid-2000s, former officials said those activities persisted simultaneously with the compromise of the FBI’s communication system. And these were not the only instances of Russian intelligence operatives staking out locations with a line of sight to CIA headquarters. They were “fixated on being in neighborhoods” that gave them exposure to Langley, said a former senior official.

Over time, U.S. intelligence officials became increasingly concerned that Russian spies might be attempting to intercept communications from key U.S. intelligence facilities, including the CIA and FBI headquarters. No one knew if the Russians had actually succeeded.

“The question was whether they had capabilities to penetrate our comms at Langley,” said a former senior CIA official. In the absence of any proof that that was the case, the working theory was that the Russian activities were provocations designed to sow uncertainty within the CIA. “We came to the conclusion that they were trying to get into our heads,” the former senior official said.

A major concern was that Russian spies with physical proximity to sensitive U.S. buildings might be exfiltrating pilfered data that had “jumped the air gap,” i.e., that the Russians were collecting information from a breach of computers not connected to the Internet, said former officials.

One factor behind U.S. intelligence officials’ fears was simple: The CIA had already figured out how to perform similar operations themselves, according to a former senior CIA officer directly familiar with the matter. “We felt it was pretty revolutionary stuff at the time,” the former CIA officer said. “It allowed us to do some extraordinary things.”

While no one definitively concluded that the Russians had actually succeeded in penetrating Langley’s communications, those fears, combined in part with the breach of the bureau’s encrypted radio system, drove an effort by U.S. intelligence officials around 2012 to fortify sensitive Washington-area government buildings against potential Russian snooping, according to four former officials.

At key government facilities in the Washington area, entire floors were converted to sensitive compartmented information facilities, or SCIFs. These are specially protected areas designed to be impenetrable to hostile signals intelligence gathering.

The normal assumption was that work done in a SCIF would be secure, but doubts arose about the safety of even those rooms. “The security guys would say, your windows are ‘tempested’”—that is, protected against the interception of emissions radiating from electronic equipment in the building —“you’re in a SCIF, it’s fine,” a former senior counterintelligence executive recalled. “The question was, ‘Is it true?’”

Increasingly, U.S. officials began to fear it was not.

New security practices were instituted in sensitive government facilities like the FBI and CIA headquarters, according to former officials. “It required many procedural changes on our part to make sure we were not susceptible to penetrations,” said a former senior CIA official. These included basic steps such as moving communication away from windows and changing encryption codes more frequently, as well as more expensive adjustments, said four former officials.

Revelations about the Russian compromise of the radio systems, recalled a former senior intelligence official, “kick-started the money flowing” to upgrade security.

While the breaches of the FBI communications systems appeared to finally spur Congress and the intelligence agencies to adopt steps to counter increasingly sophisticated Russian eavesdropping, it took the Putin-directed interference in the 2016 election to get the White House to expel at least some of those officials deemed responsible for the breaches, and to shut down the facilities that enabled them.

Even then, the decision was controversial. Some in Washington worried about retribution by the Russians and exposure of American intelligence operations, according to a former senior U.S. national security official directly involved in the discussions. The FBI consistently supported expulsions, said another former national security official.

More than two years later, the Russian diplomatic compounds used in the FBI communications compromises remain shuttered. The U.S. government has prevented many of the Russian spies expelled by the United States from returning, according to national security experts and senior foreign intelligence officials. “They are slowly creeping back in, but [the] FBI makes it hard,” said a senior foreign intelligence official. “The old guard is basically screwed. They need to bring in a whole new generation.”

In the meantime, those familiar with Russian operations warn that the threat from Moscow is far from over. “Make no mistake, we’re in an intelligence war with the Russians, every bit as dangerous as the Cold War,” said a former senior intelligence officer. “They’re trying all the time … and we caught them from time to time,” he said. Of course, he added, “you don’t know what you don’t know.”

That’s the same message that special counsel Robert Mueller tried to convey during the highly contentious hearings to discuss his report on Russian interference in the 2016 election. “They are doing it as we sit here, and they expect to do it during the next campaign,” Mueller told lawmakers on the House Intelligence Committee about covert Russian involvement in U.S. politics.

But a number of observers believe Mueller’s message about the threat from Russia was largely lost amid a partisan battle on Capitol Hill over President Trump.

During his Washington conference appearance earlier this year, Rogers, the former chair of the House Intelligence Committee, also lamented that the current politicized state of the intelligence committees would make spy agencies more hesitant to admit their failures.

“They’re not going to call you to say, ‘I screwed up.’ They’re going to say, ‘God, I hope they don’t find that,’” he said. “That’s what’s going to happen. I’ll guarantee it’s happening today.”

What Can Be Purchased at Canadian RX Pharmacies?
The best thing about Canadian drugstores is the abundance of medications they offer to their clients. As a rule, at such websites, you may find effective remedies or medical solutions to any kind of disorders, which refers to not just RX medications available on prescription, but also personal care products, vitamins and nutritional supplements. Canadian pharmacy Canadapharmrxon.com even offer a broad assortment of generic medications which are just as good as prescription drugs but are available at a more affordable price. So, what can be found at Canadian drugstores? Here is a list of the most popular options:
Anti-inflammatory medicines;
Medicines to fight infectious diseases such as antibiotics;
Antipsychotic drugs and other mental health solutions;
Men’s health goods;
Women’s skin care products;
High blood pressure solutions;
Weight control medicines;
Personal care products;
Drugs to treat stomach disorders;
Over-the-counter medicines such as herbal drugs or supplements.