The Double Life of a FL. Congressman

  Hello Ethics Committee….

Email Shows Concern About Alan Grayson’s Hedge Fund

Alan Grayson’s Double Life: Congressman and Hedge Fund Manager

WASHINGTON — The hedge fund manager boasted that he had traveled to “every country” in the world, studying overseas stock markets as he fine-tuned an investment strategy to capitalize on global companies’ suffering because of economic or political turmoil.

But the fund manager had an even more distinctive credential to showcase in his marketing material in June 2013: He was a “U.S. congressman,” Representative Alan Grayson, Democrat of Florida, a member of the House Foreign Affairs Committee. Now he is also among the leading Democratic candidates for one of Florida’s United States Senate seats.

This highly unusual dual role — a sitting House lawmaker running a hedge fund, which until recently had operations in the Cayman Islands — has led to an investigation of Mr. Grayson by the House Committee on Ethics.

The inquiry has become public, but emails and marketing documents obtained by The New York Times show the extent to which Mr. Grayson’s roles as a hedge fund manager and a member of Congress were intertwined, and how he promoted his international travels, some with congressional delegations, to solicit business.

Interviews and the documents show that Mr. Grayson told potential investors in his hedge fund that they should contribute money to the fund to capitalize on the unrest he observed around the world, and to take particular advantage when there was “blood in the streets.”

The emails also show how Mr. Grayson’s work for the hedge fund — which had $16.4 million in assets as of October and only for investors since it was established — at times interfered with his other duties. In August 2015, after Mr. Grayson introduced legislation calling for larger annual increases in Social Security benefits, he signed off on a plan to highlight the proposal at an event in Tampa, Fla., emails obtained by The Times show. But the plan was scuttled, two former aides said, when economic turmoil in China sent stock markets tumbling globally and Mr. Grayson had to turn his attention to the fund.

Ken Scudder, a spokesman for Mr. Grayson, disputed that account. “There has never been any time when Representative Grayson’s investment activities have disrupted any of his work, whether official or campaign-related,” he said.

Mr. Grayson says he has done nothing wrong. “Here is something that is not true: that I somehow traded on my membership as a U.S. congressman to get clients for this fund,” Mr. Grayson said in an interview. He added that in the last year he had refunded the full original investments put in by his two outside investors in a fund that had faced steep losses — leaving only Mr. Grayson and a family trust invested in the fund.

Mr. Grayson has closed the Cayman Islands branches of the hedge fund, and in September, after the ethics complaint was filed, he changed the name of the fund from the Grayson Fund to the Sibylline Fund, LP. He did so, he said, to try to assuage critics who said he was violating congressional ethics rules by naming a professional business after himself. Although Mr. Grayson said he did not agree that the name was a violation, “there was no point in arguing about it any longer.”

But Mr. Grayson’s activities have long concerned his campaign aides. In private emails in June, Mr. Grayson’s aides pleaded with him to close the hedge fund, convinced that its focus on investing in nations hit by political or economic strife, and its ties to the Cayman Islands, a notorious tax haven, sharply conflicted with his image as a scold of Wall Street — even if he had not done anything wrong.

“This is going to be the drip, drip, drip story that never goes away,” Doug Dodson, Mr. Grayson’s Senate campaign manager until the end of 2015, wrote in a June email to Mr. Grayson, saying his political opponents would “try to make you look like a hypocrite and a fraud and not the populist you claim to be.” Read the whole summary here.

Syria, now Uncontrollable

Opposition Leader: U.S. Diplomacy Costs Syrian Lives

Bloomberg: In the days since the collapse of the Syria peace talks championed by U.S. Secretary of State John Kerry, the humanitarian catastrophe in northern Syria has grown, tens of thousands of new refugees were created, and the Russian- and Iranian-backed killing of civilians has increased. These are all consequences of the flawed U.S. strategy, according to the lead negotiator for the Syrian opposition.

Riyad Hijab was prime minister of Syria in 2012 under the dictator Bashar al-Assad; he became the highest-ranking defector from the regime when he switched sides and joined the rebels. He is now the leader of the High Negotiating Committee that represented the Syrian opposition at last week’s meetings in Geneva, which collapsed after two days. Kerry had pressured the Syrian opposition leaders to attend, even warning they could lose their U.S. funding if they boycotted. Hijab says that Kerry’s approach — to try to persuade Assad and Russia to negotiate while the offensive continues — has actually made things much worse.

“The administration is saying it is testing the good faith of the other side,” Hijab told me in a phone interview on Monday. “But when you are testing these things and it fails, the price that is being paid is horrendous death and the expansion of extremism and terrorism on the ground.”

Syrian forces backed by Russian air power are pressing an offensive against rebel groups in and around Aleppo, the nation’s largest city, that began before the scheduled peace talks. Kerry said Friday, “This has to stop.” He said he would know if the other parties, such as Russia, were “serious” about upholding United Nations Security Council resolutions on protecting civilians after a meeting later this week in Munich of the international group of countries supporting proxies in the Syrian civil war.

In the eyes of the Syrian opposition, Russia and Iran are making a mockery of the peace process, and Kerry’s reluctance to acknowledge this is putting them in deadly harm. It also creates more problems for America’s regional allies, aids the Islamic State and dims the prospects for future peace talks. “The failures of the negotiations end up lowering the credibility of the moderate opposition in front of the Syrian people,” said Hijab. “United States credibility is plummeting within the population of Syria but also in the region as a whole.”

This week, it is Syrians near Aleppo who are paying the price. Regime forces, with Russian support, are advancing toward the Turkish border, threatening to cut off opposition groups and civilians from their source of aid. At least 35,000 people have joined the flood of refugees since the collapse of the talks, ahead of what many anticipate will be another in a long line of starvation sieges the regime is perpetrating on cities. Hijab said there are now 18 cities under siege, three more than when the talks began. More here.

Syria, already a catastrophe, seems on the verge of an uncontrollable disaster

WaPo: Suddenly, after four years of brutal civil war, Syria this week became even more of an uncontrollable military, diplomatic and humanitarian disaster.

“We are not blind to what is happening,” Secretary of State John F. Kerry said Tuesday, as he prepared for a meeting in Munich of stakeholders from outside Syria. “We are all very, very aware of how critical this moment is.”

The Thursday gathering could well be the last gasp of a three-month, Kerry-orchestrated effort to bring together powerful countries on all sides of the conflict — from Russia and Iran on behalf of the government of Syrian President Bashar al-Assad, to the United States and its partners on the opposition side — to try and forge a political solution that would allow them all to focus their efforts on defeating the Islamic State.

What seemed possible even two weeks ago, however, now seems all but hopeless. Failure of planned peace negotiations could lead President Obama finally to a decision he has long resisted — whether to more fully arm and back rebel groups whose cohesion and commitment to a democratic and secular Syria he mistrusts.

In recent days, Russian bombardment of opposition forces north of Aleppo, a rebel stronghold, has severed opposition supply lines and threatens to allow government-aligned forces to encircle the city. In a letter sent to the Obama administration this week, Russia proposed to stop the bombing on March 1, allowing it to continue for another three weeks

The Russian blitz has allowed pro-government ground forces, mostly composed of Iranian-trained militias from Iraq, Iran and Lebanon’s Shiite Hezbollah, to push north to with 20 miles of the Turkish border. This is the same area where the United States and Turkey have planned to carve out an opposition-held zone to combat Islamic State forces approaching it from the east.

Tens of thousands of new refugees have fled Aleppo and its environs to the recently closed Turkish border. Mercy Corps, one of the few aid agencies in a position to help them, said Tuesday that its supplies will soon run out. For those who haven’t fled, the encirclement of Aleppo “would leave up to 300,000 people, still residing in the city, cut off from humanitarian aid unless cross-line access could be negotiated,” the United Nations said.

In Europe, where a flood of nearly a million migrants and refugees from the region, most of them Syrians, have already arrived, political and social tensions are threatening the foundation of European unity constructed over the past 70 years.

“There are fault lines emerging that we thought we had overcome,” said Peter Wittig, Germany’s ambassador to the United States, who described the situation as an existential threat to Europe.

“The United States has been slow to recognize this is a much bigger thing than anything else we’ve experienced since the beginning of the European Union,” Wittig said. “We didn’t see it earlier, we were totally unprepared. . . . We’re not blaming the United States. It takes time for this country to realize that it’s really that serious.”

Germany has taken in the bulk of the migrants and refugees, while some Eastern European members of the E.U. have closed their borders to them.

Negotiation track derided

U.S. ties have become strained with partners closer to the conflict. These allies fear the Obama administration has been blinded to the threat from Russia and Iran by its desire to believe they can be swayed by diplomatic reason and appeals to shared worries about expansion of the Islamic State.

One senior official from a close partner nation described the negotiation track as a farce. The official said that it was unrealistic to expect the opposition to come to the table when its forces are being decimated on the ground and civilians are being starved by Russian bombing and the government gains it has enabled, in violation of United Nations resolutions that Moscow agreed to in order to get the talks started. The official, who said that U.S. leadership is still essential if the war is to end, did not want to be identified by name or nationality in order to speak candidly.

Frontline Turkey, a NATO ally and member of the U.S.-led coalition against the Islamic State, has dithered over its priorities, concerned that a U.S. alliance with Syrian Kurds fighting against the militants will give advantage to Turkish Kurds who seek independence. Even as pro-government forces expand north from Aleppo, Kurdish fighters in Syria’s northwest corner are pushing into the same area.

Turkish President Recep Tayyip Erdogan has demanded that the United States choose between Turkey and the Syrian Kurdish Democratic Union Party. After State Department spokesman John Kirby said this week that the United States does not consider the Syrian Kurds to be terrorists while recognizing that Turkey does, the Ankara government called in U.S. Ambassador John R. Bass on Tuesday for a dressing-down.

Talks between the Syrian government and opposition were suspended before they began this month after rebel representatives said they would not sit at the table until the government provided humanitarian access to besieged areas and released women and children it is holding prisoner. The Munich meeting, originally scheduled to monitor progress in the negotiations, became a final effort to get them started.

Scorched-earth policy

Kerry has long sought a more muscular U.S. policy than Obama has allowed. But he also firmly believes that if negotiations can begin, Assad will eventually be forced from power, with Russian acquiescence in the face of the inevitable.

For the moment, Moscow seems more interested in adjusting the balance of power on the ground — where just months ago, the rebels were on the ascendant — to strengthen Assad’s position before entering talks about his future.

Near the Turkey-Syria border Tuesday, rebels said they fear they are being betrayed by the countries they thought were their allies — most notably the United States. Without significant new injections of arms and ammunition, they said, they will not survive the combined onslaught of intense Russian airstrikes and advances by pro-government ground forces.

“Russia is the second superpower in the world, and Russia is using all of its power against the rebels,” said Mohammed Adib, a political officer with Jabhat Shamiya, the main rebel group fighting in northern Aleppo province. “They’re using a scorched-earth policy, and they don’t care what the international community says.”

“The problem is the friends of the regime are really good friends and give lots of support, whereas our friends sometimes give support and sometimes not,” he said.

While they don’t expect they will receive anti-aircraft missiles, which would have a major impact on the balance of power, rebels said they still hope to receive upgraded weapons, including new-generation models of the TOW missiles that have proved effective at taking out the Syrian government’s aging battle tanks, though these are no match for newly supplied Russian T-90 tanks.

If the rebel fighters cannot rebound, Adib and other rebel spokesmen said, there is a risk that opposition fighters will join more radical organizations, including the Islamic State. “People will not surrender to [Assad] under any circumstances,” said Khaled Shihabeddine, a political adviser to the Noureddin al-Zinki rebel group. “If things stay as they are, with no support and no one stopping Russia, the rebels will be pushed into a corner and . . . all possibilities will be open.”

Have you Met Taylor Johnson?

Imagine a government doing this to an employee, when an employee is bound by law to do so. Ah, Harry Reid, of course.

EXCLUSIVE: ICE Whistleblower Fired After Refusing DHS Hush Money

DailyCaller: The Department of Homeland Security on Thursday dismissed an ICE whistleblower it was secretly smearing to reporters after she testified before Congress about her troubles with the agency.

Special Agent Taylor Johnson — who had a storied career until she irked Senate Minority Leader Harry Reid by objecting to a visa program for foreign investors tied to the senator’s son — says she declined to take a $100,000 severance package because it included a non-disclosure agreement.

Gee, what a great use of taxpayer money that would have been. Pay a woman not to talk about what already got nationwide coverage when she talked about it before Congress.

DHS Acting Assistant Secretary for Public Affairs Todd Breasseale did not respond to multiple inquiries about the reason for Johnson’s dismissal and why they tried to buy her silence.

Despite all the media coverage of her case, including a Washington Gadfly report that the ICE press secretary with the approval of Breasseale was peddling confidential information to discredit her in violation of the Privacy Act, Taylor is not surprised she got the boot.

“My entire chain of command was appointed by Obama,” she remarked. “They can do anything they want.”

In testimony last June to the Senate Committee on Homeland Security and Governmental Affairs Johnson said she was stripped of her gun and badge, without explanation, after discovering fraud and abuse.

“Some of the violations investigated surrounding the project included bank and wire fraud, and I discovered ties to organized crime and high-ranking politicians and they received promotions that appeared to facilitate the program,” Johnson testified.

She said that during her investigation in 2013, she “discovered that EB-5 applicants from China, Russia, Pakistan, Malaysia had been approved in as little as 16 days” and that case files “lacked the basic and necessary law enforcement queries.”

At ICE, Johnson had amassed many awards and never had any disciplinary problems. But everything changed abruptly in 2013 when she invoked the ire of Senator Reid by holding up a visas for a foreigner investor in a Las Vegas casino represented by his son, attorney Cory Reid.

The Senator’s office complained to Johnson’s Special Agent in Charge. She was then placed on administrative leave, without explanation, on October 13, 2013.

Under pressure from Senate Democratic staffers Johnson did not mention in her testimony the role Reid’s office played in her ouster. But the DHS Inspector General concluded in a report last March that U.S. Customs and Immigration Services (USCIS) director Alejandro Mayorkas intervened in “an unprecedented matter” to approve EB-5 visas for the Las Vegas casino investors after pressure from Reid’s office.

The report essentially vindicated complaints by Johnson and other DHS employees about the program.

DHS has never given any public explanation for the disciplinary action it took against Johnson. After the hearing a DHS spokeswoman said they do not talk about personnel matters.

But this past December, ICE press secretary Gillian Christensen, citing confidential information from Johnson’s file, tried to convince this reporter off the record that she was a dishonest and a problem employee.

That argument is going to be even harder to peddle now that the Department would have allowed Johnson to leave with a clean work record and $100,000 in spending money if she promised to keep her mouth shut.

Johnson is soliciting donations on gofundme.com to cover legal fees for a possible federal lawsuit.

 

 

 

Clapper Breaks with Obama’s Threat Crisis Plank

North Korea has restarted plutonium reactor: US

North Korea has restarted a plutonium reactor that could fuel a nuclear bomb and is seeking missile technology that could threaten the United States, Washington’s top spy said on Tuesday.

Intel Chief Breaks From Obama Narrative On Iran Deal

DailyCaller: The head of U.S. intelligence believes that Iran’s recent actions speak loudly to its intentions, particularly given the country’s recent provocations since the Iran nuclear deal came into effect.

Testifying to the Senate Committee on Armed Services Tuesday, director of national intelligence James Clapper gave a very somber description of what he sees as Iran’s intentions toward the U.S. now that last summer’s nuclear deal has commenced. In particular, his statements offered little assurance that Iran is acting as an honest actor with the U.S. and the other states involved in last year’s negotiations, or that the nuclear deal will stop Iran from obtaining a nuclear weapon.

“Iran probably views JCPOA [Iran deal] as a means to remove sanctions while preserving nuclear capabilities, as well as the option to eventually expand its nuclear infrastructure,” said Clapper, who also noted that, so far, he sees no evidence that Iran is violating the nuclear deal.

Clapper’s statements stand in stark contrast with those made by President Barack Obama, who lauded the nuclear accord last summer, claiming it would not only stop all of Iran’s possible pathways to a nuclear weapon, but that “under its terms, Iran is never allowed to build a nuclear weapon.” More here.

***

Clapper went into all specifics on the threat matrix both at home and globally. He did not leave anything behind, from cyber wars, space wars, weapons systems, human trafficking, terror organizations, economic instability, migrants, disinformation and drug cartels.

 STATEMENT FOR THE RECORD WORLDWIDE THREAT ASSESSMENT of the US INTELLIGENCE COMMUNITY
February 9, 2016
INTRODUCTION
Chairman McCain, Vice Chairman Reed, Members of the Committee, thank you for the invitation to offer
the United States Intelligence Community’s 2016 assessment of threats to US national security. My statement reflects the collective insights of the Intelligence Community’s extraordinary men and women, whom I am privileged and honored to lead. We in the Intelligence Community are committed every day to provide the nuanced, multidisciplinary intelligence that policymakers, warfighters, and domestic law enforcement personnel need to protect American lives and America’s interests anywhere in the world.
 The order of the topics presented in this statement does not necessarily indicate the relative importance or magnitude of the threat in the view of the Intelligence Community. Information available as of February 3, 2016 was used in the preparation of this assessment.
 
TABLE OF CONTENTS
 
GLOBAL THREATS Cyber and Technology Terrorism Weapons of Mass Destruction and Proliferation Space and Counterspace
 
Counterintelligence Transnational Organized Crime
 
Economics and Natural Resources Human Security
 
REGIONAL THREATS East Asia
China Southeast Asia North Korea
Russia and Eurasia
Russia Ukraine, Belarus, and Moldova The Caucasus and Central Asia
Europe
 
Key Partners The Balkans Turkey Middle East and North Africa 
Iraq Syria Libya  Yemen Iran  Lebanon Egypt Tunisia
 
South Asia
Afghanistan Bangladesh Pakistan and India
Sub-Saharan Africa  Central Africa Somalia South Sudan Sudan Nigeria
 
Latin America and Caribbean
 
Central America Cuba Venezuela Brazil
 

 

 

 

 

McCaul’s Homeland Terror Threat Snapshot

McCaul Releases February Terror Threat Snapshot

WASHINGTON, D.C. – The February Terror Threat Snapshot was released today by Homeland Security Committee (HSC) Chairman Michael McCaul. The “snapshot” is a monthly Committee assessment of the growing threat America, the West, and the world face from ISIS and other Islamist terrorists.

Chairman McCaul: “The Islamist terror threat remains alarmingly high as recent arrests and terror plots demonstrate. ISIS recruits wage war in our communities, while thousands of deadly fighters trained in Syria stream back into the West – some of them infiltrating massive refugee flows. ISIS continues its global expansion on the shores of the Mediterranean Sea and the still-dangerous al Qaeda in the Arabian Peninsula seizes greater territory in Yemen. Meanwhile, Vladimir Putin and the revitalized Iran-Assad-Hezbollah terror axis are further destabilizing the Syrian crisis in the absence of U.S. leadership. This year is on track to be as dangerous as – if not worse than – 2015 for the American homeland and our national security.”

Key takeaways in this month’s Terror Threat Snapshot include:

  • The Iranian regime gained access to $100 billion in cash from the disastrous nuclear deal and is poised for further economic relief that will fuel its global network of terror.
  • An increasing number of battle-hardened fighters from Europe are returning from jihadist training grounds. Nearly 2,000 Europeans – among an estimated 6,600 Western fighters who have traveled to Syria and Iraq – have snuck back into Europe. A French counterterrorism official recently warned, “We are moving towards a European 9/11: simultaneous attacks on the same day in several countries…We know the terrorists are working on this.”
  • Islamist terrorists are exploiting global refugee flows to infiltrate and target the West. Germany’s domestic intelligence chief recently said terrorists “have slipped in camouflaged or disguised as refugees. This is a fact that the security agencies are facing.” A suspected ISIS terror plotter arrested in Germany this week snuck into Europe posing as a refugee. The European Union also recently assessed there is a “real and imminent danger” of Syrian refugees inside Europe being radicalized and recruited by Islamist extremists.
  • ISIS and al Qaeda are expanding their sanctuaries from North Africa to South Asia. ISIS is reinforcing its foothold in Libya, where it has amassed as many as 6,500 fighters and controls coastal territory on the Mediterranean Sea. Al Qaeda is making further gains in Yemen and its key ally in Afghanistan controls more territory than it has at any point since 2001.
  • The Obama Administration has surged the release of terrorists from Guantanamo Bay despite alarming rates of recidivism. The intelligence community has assessed that 30 percent of Guantanamo detainees released are either known to have or suspected of having rejoined the fight. The potential transfer of detainees to the United States, prohibited under law, would also pose a threat to the American people.
  • The United States faces the highest Islamist terror threat environment since 9/11. ISIS is waging war here in the homeland, where there have been 21 ISIS-linked plots to launch attacks. Law enforcement authorities have arrested 81 ISIS-linked suspects, including six thus far in 2016.

TerrorThreatSnapshot_February_Social Media

The complete February Terror Threat Snapshot is available, here.

View the Committee’s interactive Terror Threat Snapshot map, here.