2 Congressmen Watched Voting Machines Being Hacked

Primer

33 states accepted DHS aid to secure elections

The Department of Homeland Security (DHS) provided cybersecurity assistance to 33 state election offices and 36 local election offices leading up to the 2016 presidential election, according to information released by Democratic congressional staff.

During the final weeks of the Obama administration, the DHS announced that it would designate election infrastructure as critical, following revelations about Russian interference in the 2016 election.

Since January, two states and six local governments have requested cyber hygiene scanning from the DHS, according to a memo and DHS correspondence disclosed Wednesday by the Democratic staff of the Senate Homeland Security and Governmental Affairs Committee.

The information is related to the committee’s ongoing oversight of the DHS decision to designate election infrastructure.

The intelligence community said back in January that in addition to directing cyberattacks on the Democratic National Committee and top Democratic officials, Russia also targeted state and local electoral systems not involved in vote tabulating.

In June, DHS officials told senators investigating Russian interference that there was evidence that Russia targeted election-related systems in 21 states, none of them involved in vote tallying.

Officials have previously confirmed breaches in Arizona and Illinois, though it remains unclear whether other systems were successfully breached. Lawmakers such as Sen. Mark Warner (D-Va.) have demanded more information on the specific states targeted.

Homeland Security and Government Affairs ranking member Claire McCaskill (D-Mo.) wrote then-Secretary of Homeland Security John Kelly back in March, asking for more information on his plans for the critical infrastructure designation. The information released Wednesday is drawn from his response on June 13. Kelly has since left his post to serve as President Trump’s chief of staff.

“Prior to the election, DHS offered voluntary, no-cost cybersecurity services and assistance to election officials across all 50 states. By Election Day, 33 state election offices and 36 local election offices requested and received these cyber hygiene assessments of their internet-facing infrastructure,” Kelly wrote.

“In addition, one state election office requested and received a more in-depth risk and vulnerability assessment of their election infrastructure.”

Given the critical infrastructure designation, the DHS is providing cyber hygiene assessments, which include vulnerability scanning of election-related systems excluding voting machines and tallying systems, which the department recommends being disconnected from the internet.

The department also offers risk and vulnerability assessments, which include penetration testing, social engineering, wireless discovery and identification, and database and operating systems scanning. The DHS is also responsible for sharing threat information with owners and operators of critical infrastructure, which now include state and local election officials.

“Following the establishment of election infrastructure as critical infrastructure, several state and local governments requested new or expanded cybersecurity services from DHS,” Kelly disclosed in June, according to the letter. “Specifically, an additional two states and six local governments requested to begin cyber hygiene scanning (one state has, however, ended its service agreement). DHS also received one request for the risk and vulnerability assessment service.”

Many state and local election officials have opposed the designation, saying that the DHS has not offered enough information about what it means. The department has insisted that assistance will be given only to states that request it.

In the letter, Kelly, who has acknowledged objections, said there are “no plans to make any changes to the designation of election infrastructure as a critical infrastructure subsector.”

All of the Democratic members of the Senate Homeland Security and Governmental Affairs Committee have called for a full investigation into Russian election interference. The matter is already under investigation by the House and Senate Intelligence committees. The memo issued by Democratic staff on Wednesday was sent to the full committee.

Background at a Las Vegas Convention:

LAS VEGAS—For the first time in the 25 years of the world’s largest hacker convention, DefCon, two sitting U.S. Congressmen trekked here from Washington, D.C., to discuss their cybersecurity expertise on stage.

Rep. Will Hurd, a Texas Republican, and Rep. Jim Langevin, a Rhode Island Democrat, visited hacking villages investigating vulnerabilities in cars, medical devices, and voting machines; learned about how security researchers plan to defend quantum computers from hacks; and met children learning how to hack for good.

On Sunday, the last day of the conference, Hurd and Langevin delivered their own message: We come in peace. Please help us.

During a fireside chat-style conversation moderated by Joshua Corman, director of the Cyber Statecraft Initiative at the Atlantic Council, Hurd, chairman of the House Subcommittee on Information Technology, and Langevin, co-founder and co-chair of the Congressional Cybersecurity Caucus, called for the more than 2,000 hackers in the audience to “develop a dialogue” with their local representative in Congress.

“Never underestimate the value that you can bring to the table in helping to educate members and staff of what the best policies are, what’s going to work, and what’s not going to work,” Langevin said, pointing to Luta Security CEO and bug bounty expert Katie Moussouris’ ongoing advocacy for changes to the Wassenaar Arrangement, a decades-old international accord on how countries can transport “intrusion software” and other weapons across international borders.

Moussouris and Iain Mulholland of VMware have effectively convinced Wassenaar member countries to delay their adoption of proposed revisions to the agreement, as they’ve pushed for new language to better protect security researchers’ work.

The conversation between hackers and Congress has never been monosyllabic. But it has been frosty for decades, as federal prosecutors have used American antihacking laws such as the Computer Fraud and Abuse Act and Electronic Communication Privacy Act to punish people conducting legitimate security research.

As many security researchers continue to worry about how these laws might affect them, some have begun to use their expertise to influence the laws—and the lawmakers behind them.

Langevin and Hurd’s plea for hacker-legislator collaboration follows calls by hackers at last year’s DefCon for greater government regulation of software security.

“We don’t have voluntary minimum safety standards for cars; we have a mandatory minimum,” Corman told The Parallax at the time. “What tips the equation [for software] is the Internet of Things, because we now have bits and bytes meeting flesh and blood.”

Hurd said security researchers could play an important role in addressing increasingly alarming vulnerabilities in the nation’s voting apparatus. DefCon’s first voting machine-hacking village this weekend hosted a voting machine from Shelby County, Tenn., that unexpectedly contained personal information related to more than 600,000 voters. Village visitors managed to hack the machine, along with 29 others.

“We have to ensure that the American people can trust the vote-tabulating process,” Hurd said, acknowledging that DefCon attendees were able to hack each machine in the village. “The work that has been done out here is important in educating the secretaries of state all around the country, as well as the election administrators,” about secure technologies and practices.

Langevin and Hurd’s comments seemed to strike the right notes with hackers in attendance. Following Edward Snowden’s leaking of NSA documents and Apple’s refusal to create an encryption backdoor for law enforcement to the iPhone, relations between the hacking community and Washington have been strained at best, notes Herb Lin, a computer security policy expert and research fellow at Stanford University’s Center for International Security and Cooperation. But markedly improving the relationship will require more than a plea for collaboration, he warns.

“It’s better than what’s happened in the past, which is both nothing and active hostility,” he says. “One act by itself is not a game changer.”

The chat ended with assurances of more action from both sides. Corman said he’d like to see members of Congress attend more hacker conferences, such as ShmooCon in Washington, and Hurd promised that he wouldn’t let his experiences this past weekend go to waste.

“These conversations are going to lead me to hold hearings on many of these topics in the subcommittee that I chair,” Hurd said.

***  More details that were recorded at the convention:

DEF CON 2017 –  Are voting systems secure? In August 2016, the FBI issued a “flash” alert to election officials across the country confirming that foreign hackers have compromised state election systems in two states.

Although the US largely invested in electronic voting systems their level of security appears still not sufficient against a wide range of cyber attacks.

During an interesting session at the DEF CON hacking conference in Las Vegas, experts set up 30 computer-powered ballot boxes used in American elections simulating the Presidential election.  Welcome in the DEF CON Voting Village!

At the 1st ever Voting Village at , attendees tinker w/ election systems to find vulnerabilities. I’m told they found some new flaws

The organization asked the participant to physically compromise the system and hack into them, and the results were disconcerting.

“We encourage you to do stuff that if you did on election day they would probably arrest you.” John Hopkins computer scientist Matt Blaze said,

Most of the voting machines in the DEF CON Voting Village were purchased via eBay (Diebold, Sequoia and Winvote equipment), others were bought from government auctions.

voting machines hacking

In less than 90 minutes hackers succeeded in compromising the voting machines, one of them was hacker wirelessly.

“Without question, our voting systems are weak and susceptible. Thanks to the contributions of the hacker community today, we’ve uncovered even more about exactly how,” said Jake Braun, cybersecurity lecturer at the University of Chicago.

The analysis of the voting machines revealed that some of them were running outdated OS like Windows XP and Windows CE and flawed software such as unpatched versions of OpenSSL.

Some of them had physical ports open that could be used by attackers to install malicious applications to tamper with votes.

Even if physical attacks are easy to spot and stop, some voting machines were using poorly secured Wi-Fi connectivity.

The experts Carsten Schurmann at the DEF CON Voting Village hacked a WinVote system used in previous county elections via Wi-Fi, he exploited the MS03-026 vulnerability in Windows XP to access the voting machine using RDP.

Greetings from the Defcon voting village where it took 1:40 for Carsten Schurmann to get remote access to this WinVote machine.

Another system could be potentially cracked remotely via OpenSSL bug CVE-2011-4109, it is claimed.

huge cheer just went up in @votingvilllagedc as hackers managed to load Rick Astley video onto a voting machine

The good news is that most of the hacked equipment is no longer used in today’s election.

 

42 Years Later, Did Frank Sheeran Kill Jimmy Hoffa?

FBI Hoffa Files

It all started, and ended, on this day 42 years ago.

 

FNC: It was a hot July afternoon, nearly 92 degrees, when Teamsters president and labor icon Jimmy Hoffa is said to have opened the rear door of a 1975 maroon Mercury in the parking lot of the Machus Red Fox restaurant, in Bloomfield Hills, Mich., and climbed in.

He was never seen again.

The FBI has expended countless resources in the ensuing decades in the hopes of finally solving this enduring American mystery with no success.

But I believe, based on my 2004 investigation, that Frank Sheeran did it.

“Suspects Outside of Michigan: Francis Joseph “Frank” Sheeran, age 43, president local 326, Wilmington, Delaware. Resides in Philadelphia and is known associate of Russel Bufalino, La Cosa Nostra Chief, Eastern Pennsylvania,” reads the 1976 HOFFEX memo, the compilation of everything investigators knew about Hoffa’s disappearance that was prepared for a high level, secret conference at FBI headquarters six months after he vanished.

Sheeran, known as “The Irishman,” told me that he drove with Hoffa to a nearby house where he shot him twice in the back of the head. Our investigation subsequently yielded the corroboration, the suspected blood evidence on the hardwood floor and down the hallway of that house, that supports Frank’s story.

No one who has ever boasted about knowing what really happened to Jimmy Hoffa has had their claims tested, scrutinized, and then corroborated by independently discovered evidence… except Frank.

He is also the only one of the FBI’s dozen suspects who has ever come forward and talked publicly about the killing, let alone admit involvement.

Every other claim that you have ever heard about, from Hoffa being buried in the end zone of Giants Stadium to being entombed under a strip of highway asphalt somewhere, came from people who were never on the bureau’s list of people suspected of actual involvement.

For that reason, Frank stands alone.

Six weeks after Hoffa disappeared, Frank, along with the other suspects, was summoned before the Detroit grand jury investigating the case. He took the Fifth.

When I met him in the spring of 2001, Frank freely talked.

My meeting with Frank was arranged so that I could take his measure, and he mine, for a possible in-depth investigation, interview and news story about his claims. He was accompanied by his former lawyer Charlie Brandt, the author of Frank’s then-proposed biography, which tells the Hoffa story. Charlie had been able to spring Frank from a Mafia-related federal racketeering prison sentence, and for that reason was taken into Frank’s confidence.

It would be three years before the book, “I Hear You Paint Houses: Frank ‘The Irishman’ Sheeran And Closing The Case On Jimmy Hoffa” would be published by Steerforth Press, and before the first of my many news stories about Frank, and our investigation, would air on television.

His story is this: He and others were ordered by the Mafia to kill Hoffa to prevent him from trying to run again for the presidency of the Teamsters union. Hoffa had resigned after serving prison time for jury tampering, attempted bribery and fraud convictions. Frank picked Hoffa up at the restaurant, accompanied by two others, to supposedly drive Hoffa to a mob meeting. When they walked into the empty house together, with Frank a step behind Hoffa, he raised his pistol at point-blank range and fired two fatal shots into his unsuspecting target, turned around and left. He said the body was then dragged down the hall by two awaiting accomplices, and that he was later told Hoffa was cremated at a mob-connected funeral home.

Frank had an imposing, old-school mobster way about him that even his advanced years — he was 80 — did not betray. His menacing aura was not diminished by a severe case of arthritis that crippled him so badly that he was hunched over when he slowly walked with two canes, struggling to put one foot in front of the other.

I found Frank tough, determined, steely.

As I listened to his matter-of-fact recounting of what he said went down at that house, and giving such detail, I remember thinking what he was saying could actually be true.

Here’s why:

There is no doubt that Frank was a close confidant of Hoffa, someone who Hoffa trusted. And Hoffa didn’t trust very many.

Frank was both a long-time top Teamsters Union official in Delaware as well as an admitted Bufalino crime family hit-man and top aide to the boss himself.

The FBI admits that Frank was “known to be in Detroit area at the time of JRH disappearance, and considered to be a close friend of JRH,” as the HOFFEX memo states.

Hoffa’s son, current Teamsters President James P. Hoffa, told me in September 2001 that his father would have gotten into the car with Frank. He said that his father would not have taken that ride with some of the other FBI suspects whom I mentioned.

Frank, in the book, says that he sat in the front passenger seat of the car as a subtle warning to Hoffa, who habitually sat there. He felt a deep friendship and loyalty to Hoffa, yet knew what his own fate would be if he failed to carry out the lethal order from his mob masters. So he sat in the front seat hoping Hoffa would realize something was wrong. He did not.

The FBI did find “a single three-inch brown hair . . . in the rear seat back rest” of that car that matches Hoffa, and three dogs picked up “a strong indication of JRH scents in the rear right seat.”

I asked Frank if he remembered how to get to the house. I thought finding where Hoffa was killed, and investigating everything about the house, could be key to the case. Frank rattled off the driving directions from the restaurant and described the house’s interior layout.

Killers may not remember an exact address of a murder scene, but they never forget how they got there and what they did when they arrived.

“Sheeran gave us the directions,” Charlie wrote in the book. “This was the first time he had ever revealed the directions to me. His deepened voice and hard demeanor was chilling, when, for the first time ever, he stated publicly to someone other than me that he had shot Jimmy Hoffa.”

A year after our meeting, Charlie and Frank drove to Detroit to try to find the house, and when they did Frank pointed it out to Charlie. They did not go in.

Three years later, in 2004, I, along with producer Ed Barnes and Charlie, first stepped foot into the foyer where Frank said he shot Hoffa, looked around the first floor and as it turned out, Frank’s description fit the interior to a tee.

Ed and I arranged with the homeowners to actually take up the foyer and hallway floorboards and remove the press-on vinyl floor tiles that they had put down over the original hardwood floors when they bought the house in 1989.

We hired a forensic team of retired Michigan state police investigators to try to find any blood evidence. They sprayed the chemical luminol on the floors, which homicide detectives routinely use to discover the presence of blood.

We found it.

The testing revealed a specific pattern of blood evidence, laid out like a map of clues to the nation’s most infamous unsolved murder. Little yellow numbered tags were placed throughout the first floor foyer and hallway, to mark each spot where the investigators’ testing yielded positive hits.

The pattern certainly told the story of how Hoffa was killed.

The greatest amount of positive hits were found right next to the front door, where Hoffa’s bleeding head would have hit the floor.

Seven more tags lined the narrow hallway toward the rear kitchen, marking the drops that perfectly mimic Frank’s story of Hoffa’s lifeless body being dragged to the kitchen by the two waiting accomplices, who then stuffed it into a body bag and carried it out the back kitchen door.

We arranged for the Oakland County prosecutor’s office to remove the floorboards for DNA testing by the FBI, though Oakland County Prosecutor David Gorcyca cautioned that it would be “a miracle” if Hoffa’s DNA was recovered.

I knew those odds. A DNA hit was beyond a long shot.

Experts told me that such tiny samples of genetic material, degraded by the passage of 29 years and exposure to air and the elements under a homeowner’s heavily trafficked floor, would likely not provide enough material to result in a DNA match.

The FBI lab report says that chemical tests were conducted on 50 specimens; 28 tested positive for the possible presence of blood, and DNA was only recovered from two samples.

The FBI compared what was recovered to the DNA from a known strand of Hoffa’s hair. One sample was found to be “of male origin,” but it was not determined from whom. The other result was “largely inconclusive.”

Was I disappointed that a DNA match was not possible? Yes. Was I surprised? No. Did I think this disproved Frank’s claim? No.

Think about it.

What are the chances of any random house in America testing positive for blood traces from more than two dozen samples, in the exact pattern that corroborates a man’s murder confession?

What would luminol reveal under your home’s floor?

There are other reasons to believe why Frank’s scenario fits.

The house was most likely empty on that fateful summer day. It was built in the 1920’s and owned for five decades by a single woman, Martha Sellers, a teacher and department store employee. By the summer of 1975, Sellers was in her 80s, and not even living there full time. Her family told The Detroit News and Free Press that she had bought another home in Plymouth, Mich., where she would move permanently the next year.

Frank says that a man he called “a real estater” lived in the house. The Sellers family remembered that boarder, who they recalled resided in an upstairs bedroom. He was described as “a shadowy figure . . . who would disappear. He never said more than a few words and they know nothing about him, not even his name.”

It is quite possible that “the real estater,” was the link between the house and the Detroit mob, providing an empty house as needed, when Sellers was absent, for whatever purpose…including using it as a Mafia hit house to murder Jimmy Hoffa.

The FBI clearly believed Sheeran had credibility.  Agents visited him in his final years, in an unsuccessful attempt to secure his cooperation.

While we were conducting our investigation in Detroit in 2004, the FBI, I was told, tried to find the house even before we aired our story.

And the views of those closest to Jimmy Hoffa, his son and daughter seem especially relevant when assessing Frank’s credibility.

Not only did James P. Hoffa confirm that his father would have driven off with Frank, but his sister, Hoffa’s daughter, Barbara Crancer, wrote Frank a poignant letter begging him to come clean about their father’s fate.

In the one-page heartfelt note, handwritten to Frank on March 5, 1995, she wrote:

“It is my personal belief that there are many people who called themselves loyal friends who know what happened to James R. Hoffa, who did it and why. The fact that not one of them has ever told his family — even under a vow of secrecy, is painful to me…”

She then underlined: “I believe you are one of those people.”

Crancer confirmed to me that she wrote that letter.

Sadly for the Hoffa family, Frank never directly honored her request. When I sat with him, he said that his No. 1 priority was not to go back to “college,” meaning prison. He decided that the best way to avoid that possibility, while also revealing his story, was to share his secrets for the book and my reporting.

Frank died on Dec. 14, 2003. He was 83.

While authorities no doubt will continue to respond to more tips, as they should, I believe that we already know what happened to Jimmy Hoffa.

Frank described the most precise and credible scenario yet to be recounted, and the evidence that we found from the floor backs up his confession.

In the more than four decades since, Hoffa’s life and legacy as a pivotal part of the American labor movement has been somewhat overshadowed by his disappearance. But it seems clear that organized crime bosses did not want him to resume the mantle of the Teamster’s presidency, and went to the ultimate length, through Sheeran, to prevent his return.

Today Hoffa’s union, the International Brotherhood of Teamsters, represents 1.4 million workers and continues to be headed  by his son. Two years ago a milestone was marked in the attempts to shed any specter of possible organized crime.  In 2015, Federal Judge Loretta Preska approved the Department of Justice and union agreement that ended the U.S. government oversight of the Teamsters that had lasted for more than 25 years.

The U.S. Attorney for the Southern District of New York at the time, Preet Bharara, said that the union had made “significant progress” in “ridding…the influence of organized crime and corruption,” though he cautioned that “the threat…persists.”

Hoffa called it “an historic agreement…our union is committed to the democratic process, and we can proudly declare that corrupt elements have been driven from the Teamsters.”

Sadly, it was those corrupt elements that took the life of his father as he tried to take back his union.

“Jimmy Hoffa raised millions of workers and their families out of poverty and into the middle class,” noted the Teamsters Union in a statement to Fox News.

“He gave his life while fighting to remove corrupt elements from the union and return power to the members. This tragic anniversary is particularly difficult on his family who lost a father and grandfather much too soon. They want nothing more than to have the closure that they so deserve.”

Frank’s story will be told in a major motion picture, “The Irishman,” starring Robert De Niro as Frank and directed by Martin Scorsese. Tribeca Films and Sikelia Productions, in association with Netflix, will bring this story to the big screen and the streaming service in 2018. Al Pacino, Joe Pesci and Harvey Keitel are said to also have roles, uniting the legendary actors of the genre in one last mob movie.  I am proud of pushing the film idea, which will no doubt become an iconic motion picture.

Blame Obama and Brennan for Venezuela, Maduro

Some facts on Venezuela under Chavez and now Maduro. When it comes to blame on why the country is in a tailspin and on the way to be a failed state where people are suffering beyond measure, rogue foreign leaders flock together and Obama/Brennan knew this was coming.

VIR

Venezuela is part of SWIFT, the Society for Worldwide Interbank Financial Telecommunications. SWIFT knows precisely all the global transactions into and out of Venezuela including the country’s dealings with Syria, Iran, and Russia.

Related reading: Inside the Hell of Venezuelan Police Prisons

Venezuela has received at least $36 billion in loans from China that have helped finance two economic development funds focused largely on infrastructure projects. Five people in raids that we carried out in Caracas linked to the embezzlement of $84 million from the Chinese Fund and Bandes. Maduro pledged to stop the corruption. Right huh? What about $300 billion?

Oops, there is more: How about the loan for oil program?

Under Chavez, several global oil deals were signed that included India, China and Russia. Under Maduro, the production has failed to meet contractual agreements. Caracas needs the oil to pay debts to China and Russia, key political allies that have together lent Venezuela at least $50 billion in exchange for promised crude and fuel deliveries.

According to Reuters, former ministers Héctor Navarro and Jorge Giordani are accusing government workers of pocketing more than $300 billion in crude oil revenue over the past decade. They are demanding the government account for these funds and investigate into whose hands they went. Navarro has personally requested that “a state ethics council review the operations of the 13-year-old exchange control mechanism that opposition leaders have described as a ‘corruption machine.’”

Another former Chávez minister, Ana Elisa Osorio, petitioned the Republican National Council, a government watchdog group, to investigate the case. “In the last two years, we have found missing $20 billion from the Republic’s funds. This is why we resort here to calling for a meeting of regulators, the treasury, and the national attorney’s office,” Osorio said. More here.

Oh yeah, we cant leave out Goldman Sachs. In 2016, Goldman Sachs confirmed its asset management arm had bought $2.8 billion of another bond issued by Venezuela’s state oil company PDVSA at a steep discount.

SantiagoTimes

So on to some other facts that rogue leaders overlook, including the United States when it comes to heading off the tailspin and eventual failure of a state resulting in disgusting human rights violations.

2011: Iran began building intermediate-range missile launch pads on the Paraguaná Peninsula, and engineers from a construction firm – Khatam al-Anbia – owned by the Revolutionary Guards visited Paraguaná in February. Amir al-Hadschisadeh, the head of the Guard’s Air Force, approved the visit, according to the report. Die Welt cited information from “Western security insiders.”

In 2015: Drug smuggling is thought to be on the rise in Venezuela, with many public officials complicit. According to the BBC, the US has already sanctioned at least 50 whom it accuses of human rights abuses and drug trafficking.

Pressure on the drug trade in neighbouring Colombia appears to have forced many narco-traffickers over the border. While Venezuela does not grow the coca plant or manufacture cocaine, estimates in the US State Department’s annual International Narcotics Control Strategy Reports suggest that between 161 and 212 metric tons of cocaine are shipped from the country each year, although data is scarce.

In its most recent such report, published in March 2015, the US State Department reported that “public corruption is a major problem in Venezuela that makes it easier for drug-trafficking organizations to move and smuggle illegal drugs”. More here.

IBTimes

Related reading: Trump should muster an international rescue of Venezuela

2017: Maduro named Tareck El Aissami as the Vice President.

That means that, in a country of complete and utter chaos — where people are starving, healthcare is nonexistent, electricity is scarce, and vigilante justice is becoming a norm — a suspected terrorist is one heartbeat away from the highest office in the land.

El Aissami is a known entity in the world of US intelligence. He is allegedly a part of Venezuela’s state drug-trafficking network and has ties to Iran, Syria, and Lebanese terrorist group Hezbollah.

Joseph Humire, coauthor of “Iran’s Strategic Penetration in Latin America” and founder of the Center for a Secure Free Society (SFS) think tank, testified to the same effect before the House Committee on Foreign Affairs last year.

Over the years, El Aissami developed a sophisticated, multi-layered financial network that functions as a criminal-terrorist pipeline bringing militant Islamists into Venezuela and surrounding countries, and sending illicit funds and drugs from Latin America to the Middle East.

“His financial network consists of close to 40 front companies that own over 20 properties with cash, vehicles, real estate and other assets sitting in 36 bank accounts spread throughout Venezuela, Panama, Curacao, St. Lucia, Southern Florida and Lebanon. This network became integrated with the larger Ayman Joumaa moneylaundering network that used the Lebanese Canadian Bank to launder hundreds of million of dollars and move multi-ton shipments of cocaine on behalf of Colombian and Mexican drug cartels as well as Hezbollah.

“This immigration scheme is suspected to also be in place in Ecuador, Nicaragua and Bolivia, as well as some Caribbean countries.”

In 2016: A jury in New York found two relatives of Venezuelan President Nicolas Maduro guilty on Friday of attempting to import 800 kilograms of cocaine into the United States. Franqui Francisco Flores de Freitas and Efrain Antonio Campo Flores, both nephews of Maduro’s wife Cilia Flores, were arrested in November 2015 in Haiti in an investigation that saw Drug Enforcement Agency (DEA) informants pose as Mexican traffickers and meet with the nephews. More here.

Further on that case during trial it was revealed that Flores and Campo are the nephews of Cilia Flores, the wife of President Maduro and a politician in her own right. According to trial testimony, they were planning to move cocaine for the Revolutionary Armed Forces of Colombia (FARC) through Venezuela via the president’s private hangar at the Simon Bolivar International Airport in Caracas.

They expected the deal to bring them as much as $11 million, some of which was to be used to help fund Cilia Flores’ re-election campaign.

When LLC Means Lies, Laundering and Coverups in New York

It festers in New York and New Jersey. LLC’s, Limited Liability Company is a corporate structure where members are not held personally liable, a legal characteristic that actually has major abuse components.

Yesterday, my buddy Bill Browder gave chilling testimony before the Senate Judiciary Committee. He included one remarkable response to a question on the abuse of FARA, Foreign Agent Registration Act whereby there is a huge hole in the law that you could drive a truck through. That whole is, if you are a corporation, you don’t have to register, giving rise to the massive trend of lies, money laundering and coverups.

Photo of Chaika and Medvedev: (Dmitry Medvedev in 2013 at Davos, declared he wanted Bill Browder dead)

Senator Durbin mentioned Yuri Chaika in the hearing. Chaika, a Russian prosecutor who employs Natalia Veselnitskaya, the woman who met with Donald Trump Jr. at Trump Tower in June of 2016. Yuri Chaika is connected to Avilon Automotive Group.

About 90 percent of Avilon Automotive Group is equally split between Alexander Varshavsky and Kamo Avagumyan.

Varshavsky is a naturalized American. He lives in Holmdel, New Jersey, an upscale enclave southwest of Manhattan, and owns a number of US companies which control assets in Russia with well over US$ 1 billion dollars in turnover, including Avilon. Huge detailed summary here.

The extended case includes corruption totaling more than $1 billion in the hole, citing bad loans made for fake assets, among other offenses. The lawsuit regarding Avilon Automotive Group and New York Motors and the Russian operation is described here.

When bribes are paid, some include Daimler, Mercedes Benz and Russia.

“Avilon” is an official dealer of «Mercedes-Benz RUS “. The company “New York Motors Moscow” is the dealer of Ford, but this does not stop it from entering into large contracts to supply Mercedes cars. Forbes magazine has included “New York Motors Moscow” into its list of top 200 private companies in Russia. According to the database SKRIN, the founder of one of the major suppliers of “Mercedes” for special services is the company New York Motors Corp, incorporated in the State of New Jersey. American business registers show that one of the owners of the company is Alexander Varshavsky.

Going further, below, are further examples supporting Browder’s declaration that include more Russians and other foreigners.

https://static01.nyt.com/images/2014/01/17/nyregion/hudson-2/hudson-2-master1050.jpg NYT

There is a large condo building in New York by the name of the Time Warner Center. Yup, Alexander Varshavsky lives there. Who are his neighbors? Many of the same corruptocrats. The full study performed by the NYT’s is here.

These residents buy these condos using cash and under secret names or shell operations like the condo in the official name of “25CC ST74B L.L.C”, which belongs to Vitaly Malkin tied to organized crime.

Andrey Vavilov bought a $37.5 million condo in Time Warner Center in 2009. The former Russian senator and businessman has been tied to a series of crooked deals, including government kickbacks, and accused of masterminding a “media blitz … involving a longtime adversary” and starting programs that accrued him (and his friends) a massive amount of wealth during the foundering first years of the Russian Federation, according to The Times.

(Vavilov is also close friends with Rinat Akhmetshin who was a director of the Washington think tank Eurasia Democracy Initiative. Akhmetshin was also in the Donald Trump Jr. meeting at Trump Tower in June of 2016. Akhmetshin is a former Soviet intelligence officer and remains employed by the SVR, the Russian external intelligence agency for civilian affairs. The SVR is responsible for espionage activity outside of the Russian Federation.)

Kabul Chawla is the likely owner a $19.4 million, 4,050-square-foot condo with five bedrooms in the Time Warner Center, according to The Times. A New Delhi developer, Chawla is accused of pre-selling homes to residents and failing to finish them. Of the homes his company does finish, many are allegedly shoddily done.

José Murat Casab owns two condos that he bought for $5.44 million in the Time Warner Center through the shell company Nivea Management, according to The Times. He is the former governor of Oaxaca and a well-connected, controversial Mexican politician who is rumored to have staged an assassination attempt on his own life to gain public favor.

Vitaly Malkin reportedly owns a $15.65 million condo in the Time Warner Center through an LLC. He is a Russian-Israeli businessman and politician who was denied entry into Canada by the Canadian government amid accusations of money laundering and international arms deals (accusations his lawyer vehemently denies).

Dimitrios Contominas owned a condo on the 74th floor of the Time Warner Center until he sold it for $21.4 million 2014. He is the owner of one of Greece’s biggest TV stations and is a well-known businessman who was arrested on fraud and corruption charges last year.

Wang Wenliang’s shell company Columbus Skyline LLC owns three condos in Time Warner Center. The Chinese businessman and contractor owns a construction company that was accused of “housing workers in New Jersey in hazardous, unsanitary conditions,” according to Times reporters.

Anil Agarwal owns not one but two condos in Time Warner Center through the shell company Amanita Corporation. He is an Indian business magnate who has been fined for dumping chemical waste, poisoning nearby communities as well as the environment in both India and Zambia.

Former ambassador to the US Prince Bandar bin Sultan and his wife (and daughter of a former Saudi king) Princess Haifa bint Faisal were also tied to a Time Warner Center unit. Princess Haifa was accused in certain press outlets of funding the 9/11 hijackers, though no evidence was found by the United States Commission that linked back to her.

James Nicholson owned an $8.5 million Time Warner condo until it was frozen by law enforcement. He was charged with stealing more than $100 million from investors in one of the worst Ponzi Schemes in American history. He is now in jail.

Pablo Ardila bought a $4 million condo in Time Warner Center back in 2004. According to The Times, the former Colombian official sold it after being arrested for “enriching himself illicitly.” He was released in Colombia without being convicted.

Stewart Ford bought a $6 million condo in the building before eventually transferring it to a shell company, according to the Times report. His firm was under investigation for fraud at the time and was “at the center of one of the biggest financial collapses in Britain with an estimated 30,000 victims,” the reporters wrote.

 

 

 

Largest Dark Web Hub for Illicit Drugs, Firearms, Malware Shutdown

Largest Dark Web Marketplace for Illicit Drugs, Firearms, Malware and More Shut Down

The largest criminal marketplace on the dark web for the illicit trade of drugs, firearms, computer hacking tools and more was shut down Thursday, the US Department of Justice (DOJ) announced.

The online marketplace, called AlphaBay, operated for more than two years, allowing buyers and sellers to anonymously exchange illegal goods and services like drugs, toxic chemicals, stolen and fraudulent identification documents and malware.

SilkRoad SeizureAlert placed on the Silk Road dark web criminal marketplace’s homepage after its seizure in 2013 (Photo: FBI, Public Domain Mark 1.0)

AlphaBay was hosted on the dark web, a hidden part of the internet that users require special software to access. One of the most common ways to access the dark web is by using a browser called Tor, which prevents network surveillance and essentially renders a user anonymous online.

Financial transactions between users on AlphaBay were conducted using cryptocurrencies, namely Bitcoin, Monero and Ethereum, according to the DOJ. Authorities believe the site was used to launder hundreds of millions of dollars from such illegal transactions.

AlphaBay was also linked to multiple overdose deaths in the US as a “major source” of fentanyl and heroin, The Independent reported.

The investigations that led to Thursday’s seizure of AlphaBay and Hansa, another major criminal market on the dark web, were led by the Federal Bureau of Investigation (FBI), the US Drug Enforcement Agency and the Dutch National Police, according to Europol, which also supported the operations.

Law enforcement agencies in Thailand, Lithuania, Canada, the UK and France also cooperated in the seizure of AlphaBay and Hansa’s digital infrastructure.

“Transnational organized crime poses a serious threat to our national and economic security,” said FBI Acting Director Andrew McCabe.

“Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates.”

Authorities were able to take AlphaBay down in early July when they took the site’s alleged founder Alexandre Cazes into custody, The New York Times reported.

Cazes, 25, was a Canadian citizen living in Bangkok, Thailand. A few days after being arrested, on July 12, Cazes apparently committed suicide.

He was found to have possessed millions of dollars in cryptocurrency and luxury assets around the world, including expensive vehicles, residences and a hotel in Thailand.

At the time of its takedown, AlphaBay hosted more than 250,000 listings for illegal drugs and chemicals and more than 100,000 listings for stolen or fake documents, counterfeit goods, firearms and other illicit goods and services.

By comparison, the marketplace’s scope dwarfed the former largest illegal dark web exchange called the Silk Road, which was taken down in 2013 and had about 14,000 listings.

Europol Executive Director Rob Wainwright called AlphaBay’s demise a “massive blow to the underground criminal economy.”

However, the authorities’ fight against dark web markets is likely to continue.

In the wake of AlphaBay and Hansa’s seizure, NBC News reported a spike in traffic to a former competitor of the two marketplaces called DreamMarket, which might now enjoy a corner on the illegal market.

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The U.S. Attorney’s Office for the Eastern District of California filed a civil forfeiture complaint against Alexandre Cazes and his wife’s assets located throughout the world, including in Thailand, Cyprus, Lichtenstein, and Antigua & Barbuda. Cazes and his wife amassed numerous high value assets, including luxury vehicles, residences and a hotel in Thailand. Cazes also possessed millions of dollars in cryptocurrency, which has been seized by the FBI and the Drug Enforcement Administration (DEA).

According to publicly available information on AlphaBay prior to its takedown, one AlphaBay staff member claimed that it serviced over 200,000 users and 40,000 vendors.  Around the time of takedown, there were over 250,000 listings for illegal drugs and toxic chemicals on AlphaBay, and over 100,000 listings for stolen and fraudulent identification documents and access devices, counterfeit goods, malware and other computer hacking tools, firearms and fraudulent services. Comparatively, the Silk Road dark web marketplace, which was seized by law enforcement in November 2013, had reportedly approximately 14,000 listings for illicit goods and services at the time of seizure and was the largest dark web marketplace at the time.

“This is likely one of the most important criminal investigations of the year – taking down the largest dark net marketplace in history,” said Attorney General Jeff Sessions. “Make no mistake, the forces of law and justice face a new challenge from the criminals and transnational criminal organizations who think they can commit their crimes with impunity using the dark net.  The dark net is not a place to hide. The Department will continue to find, arrest, prosecute, convict, and incarcerate criminals, drug traffickers and their enablers wherever they are. We will use every tool we have to stop criminals from exploiting vulnerable people and sending so many Americans to an early grave. I believe that because of this operation, the American people are safer – safer from the threat of identity fraud and malware, and safer from deadly drugs.”

“Transnational organized crime poses a serious threat to our national and economic security,” said Acting Director Andrew McCabe of the FBI. “Whether they operate in broad daylight or on the dark net, we will never stop working to find and stop these criminal syndicates.  We want to thank our international partners and those at the Department of Justice, the DEA and the IRS-CI for their hard work in demonstrating what we can do when we stand together.” More here.