Category Archives: government fraud spending collusion

Robby and Donna Lost it for Hillary, But now Those Trump Picks

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As we approach the inauguration of Donald Trump in a few short weeks, reflecting on what happened and what will happen is a task readers should assume. Politics is a blood-sport, that is beyond dispute. Fake news is still going on out there and crazy websites are still getting read that produce articles out of pure conjecture and without facts or evidence.

This post is not about slamming anyone, it is about truth and offers up some lessons, especially when it comes to what we must continue to watch for in the near future.

When journalists do spend the time to perform interviews, look for documents, have transcripts and see actual dollars change hands, one must take notice. There are many in the media that in fact do a great job while often others do not and gaining attention to additional facts is cumbersome and difficult.

Hat tip to Politico for seeking some real answers as to who was responsible for Hillary losing Michigan. If it happened in Michigan it happened in the other battleground states. Seems the Hillary headquarters in Brooklyn never had a pulse on the nation’s electorate and when polling demonstrated figures that were not in Hillary’s favor, panic set in not only at the DNC, but at the state level and at the union support level. The one size fits all playbook as designed by Robby Mook did not work. Remarkable….Trump continued to edge his opponent, Hillary. The messaging was right for Trump however, is that process for his cabinet choices all he claims that it is? No.

There are some real lessons here for the whole American electorate and this speaks to what we need to beware of in coming days, weeks and months.

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In part from Politico:

Everybody could see Hillary Clinton was cooked in Iowa. So when, a week-and-a-half out, the Service Employees International Union started hearing anxiety out of Michigan, union officials decided to reroute their volunteers, giving a desperate team on the ground around Detroit some hope.

They started prepping meals and organizing hotel rooms.

SEIU — which had wanted to go to Michigan from the beginning, but been ordered not to — dialed Clinton’s top campaign aides to tell them about the new plan. According to several people familiar with the call, Brooklyn was furious.

Turn that bus around, the Clinton team ordered SEIU. Those volunteers needed to stay in Iowa to fool Donald Trump into competing there, not drive to Michigan, where the Democrat’s models projected a 5-point win through the morning of Election Day.

Michigan organizers were shocked. It was the latest case of Brooklyn ignoring on the-ground intel and pleas for help in a race that they felt slipping away at the end. Read the full summary here, it is a fascinating read.

**** Now on to Donald….remember that swamp and that whole lobby thing he touted? Remember his words about pay to play? Sheesh…

**** Hat tip to the Center for Public Integrity:

Donald Trump rewarding million-dollar donors with plum postings

Ultra-rich loyalists populating president-elect’s administration, transition team

Update, Dec. 9, 2016, 2:22 p.m.: This story has been updated.

Donald Trump routinely blasts his political foes for “pay-to-play” politics and “crony capitalism and corruption.”

But Trump is now rewarding some of his biggest campaign bankrollers with unparalleled access, influence, prestige and power in his presidential administration-in-waiting, according to a Center for Public Integrity analysis of new campaign finance disclosures filed with the Federal Election Commission.

In all, 18 ultra-wealthy Americans — the majority are billionaires whose fortunes are greatly affected by government decisions — contributed at least $1 million to the Republican’s presidential campaign and political efforts supporting Trump’s bid, the Center for Public Integrity’s analysis shows.

At least one person on this list, former World Wrestling Entertainment executive Linda McMahon, is slated to serve in Trump’s Cabinet: Trump this week tapped McMahon to lead the federal government’s Small Business Administration. In addition to spending $6.2 million to support Trump’s presidential effort, she and husband Vince McMahon have together donated millions of dollars to Trump’s scandal-plagued charitable foundation.

Trump is also nominating six-figure contributors to cabinet-level positions: billionaire philanthropist Betsy DeVos as education secretary, restaurant mogul Andy Puzder as labor secretary and billionaire investor Wilbur Ross as commerce secretary. And four days before Election Day, Department of Housing and Urban Development secretary nominee Ben Carson’s old presidential campaign committee likewise gave a pro-Trump super PAC $100,000.

Another top backer, hedge fund manager Robert Mercer, gave $2 million to a pro-Trump super PAC he helped establish with his daughter, Rebekah Mercer, called “Make America Number 1.”

The father-daughter duo helped convince Trump to overhaul his campaign leadership in August and install operatives with close ties to the Mercer operation. They are now poised to play a leading role in a new organization designed to advance Trump’s legislative agenda. Rebekah Mercer is also a member of Trump’s presidential transition team executive committee.

In a sign of how much the Mercers have endeared themselves to the president-elect, Trump, on Saturday, made a surprise appearance at the Mercer’s “Villains and Heroes”-themed Christmas costume party on Long Island, New York.

Then there’s Silicon Valley investor Peter Thiel, who gave $1 million to the Mercer-led, pro-Trump “Make America Number 1” super PAC during the presidential campaign’s final days, new federal campaign finance disclosures show.

One of the few tech titans to openly speak about his support for Trump, Thiel is now on the executive council of Trump’s presidential transition team.

Joe Ricketts, the billionaire founder of online brokerage TD Ameritrade who initially funded an anti-Trump super PAC, also earned Trump’s favor after contributing $1 million in September to pro-Trump super PAC “Future45.”

Ricketts son, Todd Ricketts, helped run “Future45.” Todd Ricketts is now Trump’s nominee for deputy commerce secretary.

Trump has given his No. 1 and No. 2 overall financial backers — casino tycoon Sheldon Adelson, and his wife, Miriam Adelson — new jobs since winning the presidency: They’re finance vice-chairmen of Trump’s inaugural committee, which is working to raise tens of millions of dollars to pay for his inauguration. It’s an event that itself promises top donors posh perks and exclusive access to Trump and his administration.

Sheldon Adelson — the chairman and CEO of the Las Vegas Sands Corp. — waited until late October to put big dollars into backing Trump. But both he and Miriam Adelson ultimately invested $10.2 million each into pro-Trump groups. The Adelsons are strong supporters of Israel and opponents of online gambling.

During the Republican presidential primary, Trump had accused Adelson of attempting to use his wealth to control Sen. Marco Rubio, R-Fla., who was also seeking the GOP presidential nomination.

Representatives from Trump’s transition team did not respond to requests for comment.

Trump has promised to “drain the swamp” in Washington, D.C. — an allusion to what he says is a capital city controlled by corrupt, self-interested lobbyists, political operatives and businesspeople.

On one hand, Trump can argue that many of his top donors are not creatures of Washington, D.C., but rather, successful outsiders he trusts to reform the federal government, said Meredith McGehee, chief of policy, programs and strategy for campaign finance reform organization Issue One.

On the other hand, Trump offering top donors key postings and intimate access “raises the question of whether they bought their positions,” she said.

In the end, Trump was the biggest single bankroller of his campaign. He ultimately contributed $66.1 million of his own funds to his presidential campaign — about 19 percent of the $339 million he ultimately raised for the primary and general elections, federal disclosures show.

Like all candidates, Trump’s campaign was prohibited from raising more than $5,400 per donor — $2,700 for the primary and $2,700 for the general election.

But a host of super PACs ultimately sprang up to support the billionaire businessman and celebrity reality TV star. And thanks to the U.S. Supreme Court’s Citizens United v. FEC decision in 2010, and a related lower court ruling, these groups are allowed to accept donations of any amount from contributors.

Trump also operated two joint fundraising groups with the Republican National Committee that could collect six-figure checks, money which was split between the Trump campaign, RNC and several state Republican parties.

Not all of Trump’s top donors have received key posting in Trump’s administration or transition team — yet.

Take Robert McNair, CEO of the Houston Texans, who doubled down on Trump in the final weeks of the election. According to new campaign finance filings, McNair contributed $2 million to a pro-Trump group called “Great America PAC” on Oct. 21.

But another football mogul — Woody Johnson, owner of the New York Jets and a major Trump donor — is a member of Trump’s inaugural committee. Trump is also reportedly considering Johnson for nomination as the United States’ ambassador to the United Kingdom.

Modern presidents, both Democrats and Republicans, have regularly offered top donors ambassadorships. Trump has offered no indication he will change this practice. Trump also has yet to begin doling out most ambassador positions.

Two other top Trump donors — billionaire Diane Hendricks, the richest woman in Wisconsin, and billionaire Stephen Feinberg, CEO and founder of investment firm Cerberus Capital Management — served as economic advisers to Trump during the campaign. It’s not yet clear whether either will have a more formal role in Trump’s administration.

Bernard Marcus, the billionaire co-founder of Home Depot, donated $7 million to pro-Trump super PACs, ranking him just behind the Adelsons in overall contributions. Marcus says he has no interest in a formal role with the Trump administration, but has said he will be available if Trump wants his advice.

Former Goldman Sachs executive Steve Mnuchin doesn’t rank among Trump’s top donors.

But Mnuchin, who as Trump’s top campaign fundraiser was responsible for convincing so many wealthy individuals to give Trump money, is also enjoying the spoils of victory.

Trump has nominated Mnuchin as his U.S. Treasury secretary.

Update, Dec. 9, 2016, 2:22 p.m.: This story has been updated to reflect that 18, not 17, ultra-wealthy Americans donated at least $1 million to pro-Trump efforts. A newly filed campaign finance report by pro-Trump super PAC “Great America PAC” showed that billionaire Marvel Entertainment CEO Isaac Perlmutter contributed $5 million to the group, adding him to the list. The same report showed that billionaire Dallas banker Andy Beal contributed $2 million to Great America PAC on Nov. 1, which increased his total contributions in the table.

Chris Zubak-Skees contributed to this report. For a graphic on who donated more than $1.0 million to Trump, go here.

 

 

Van Jones is Behind this Electoral College Vote Challenge

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July, 2016:

PHILADELPHIA— Self-described “communist” and “rowdy black nationalist” Van Jones is starting a new “social justice” public relations outfit to be called Megaphone Strategies.

The firm touts itself as a “social justice media strategy firm run for purpose, not profit.” (Good luck with your efforts to circumvent human nature, Comrade Jones.) Molly Haigh, communications director for the Progressive Change Campaign Committee is his partner in this new adventure in antisocial activism.

Jones, who was President Obama’s green jobs czar until it was revealed that he was a 9/11 truther, will chair the organization’s board while Haigh will be president and oversee five staffers in the beginning.

AdWeek’s Fishbowl DC blog reports, quoting Jones:

Everywhere we look, we discover courageous people finding ways to break down barriers and solve tough problems. We need to hear their voices, and we need to elevate their work,” said Van Jones of the reason behind the firm’s creation, which will offer strategy, publicity, media training and event/social justice campaign planning services.

Megaphone’s clients include Vote.org, the ACORN-affiliated Working Families Party, and Demand Progress.

Jones, by the way, said Donald Trump’s speech on the closing day of the Republican National Convention makes him an American Hitler.

Well, actually, the America-hating communist didn’t literally say that but he came fairly close.

Although Trump’s speech was widely applauded in Republican circles, Jones called it a “schizophrenic psychopathic attempt to pull apart the Obama coalition,” like a moment “where there’s some big authoritarian movement, and some leader that’s rising up,” and “a disgrace.”

What do you expect from someone who hates everything America stands for?

What Jones said about Trump’s address probably isn’t anywhere near the worst garbage to have spewed from his mouth on CNN where he is a paid contributor. His commentary throughout the Republican National Convention in Cleveland last week was fairly uniformly malicious, ugly, and unfair.

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Megaphone Strategies lists a majority of its clients as environmental and “social justice” organizations such as 350.org, Green For All, Democracy Fund, and Demand Progress. More here.

Going back to 2009, Van Jones called the Republicans ‘assholes’ before his audience at a time when he worked for the Obama White House.

Secretary of State Tillson: Kremlin Order of Friendship

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In 1994, Boris Yeltsin ordered by decree an award known as the ‘Order of Friendship’. Yeltsin emerged to power under the perestroika movement and under his reign, he terminated the Russian Constitution, the Parliament and widespread corruption spread through his term due mostly on industries dealing with oil commodities.

In 1989, Yeltsin visited Texas to better understand the fossil fuel industry and return to his motherland to stop the country from falling into economic collapse yet failed. Crime, protests and prices of basic needs saw inflationary prices such that the Soviet Union soon fell.

With the country in chaos and corruption spreading Yeltsin forged a relationship with Rex Tillerson of Exxon Mobile, the top candidate for Secretary of State in the new Trump administration. Yeltsin bestowed an award to Tillerson known as the ‘Order of Friendship’. Then came the deployment of the business partnerships.

Exxon’s landmark 2011 joint venture with Kremlin-controlled Rosneft calls for upwards of $500 billion in investment over the coming decades. The companies are planning an offshore drilling campaign in Russia’s frozen Chukchi Sea, Laptev Sea and Kara Sea, as well as the Black Sea. They’ll also be drilling onshore in western Siberia, where the Bazhenov and Achimov formations are thought to be many times bigger than the Bakken shale of North Dakota. In addition, Exxon and Rosneft are working to finalize designs for an LNG project in Russia’s far east.

As in any good bromance, they hang out in each others’ neighborhoods. To balance out the geographic breadth of the partnership, Rosneft has joined with Exxon to invest in 20 deepwater exploration blocks in the Gulf of Mexico, as well as onshore projects in Texas and Alberta, Canada. Exxon has also given Rosneft the option to acquire a 25% stake in the Port Thomson Unit, which is estimated to hold a quarter of the natural gas and condensate reserves on Alaska’s North Slope. Back in 2007, amid Putin’s moves to reassert state control over Russia’s energy industry, Exxon’s Sakhalin-1 JV with Gazprom was thought to be a target. But CEO Rex Tillerson made it clear back then that he wouldn’t be pushed around and that he expected Russia to abide by contracts. As the Financial Times reported at the time:

Mr Tillerson said Russia had moved past its phase of trying to regain control of resources. “They want foreign participation because they know there’s technology capability that they need access to and there’s know-how that they need access to.”

Future investment by Exxon would depend on that contract being honoured, he said. “As long as they say, ‘We don’t like that deal we signed back then, but we’ll honour it’, that doesn’t stand in the way of our investments – we can proceed.”

Although Exxon did eventually accede to Gazprom’s wishes that it, not Exxon, control the destination of gas from Sakhalin-1 (Exxon wanted to sell directly to China), what Exxon got in return for its flexibility was an even bigger deal with Rosneft — that big new LNG project being engineered now, which could end up costing $15 billion or more.

In signing agreements with Rosneft last June, Tillerson remarked, “Experience tells us that a good foundation is critical for success in the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with Rosneft is an example where we have put this experience to work.”

Last summer Putin made it official; he awarded Tillerson Russia’s Order of Friendship. Friends, joined in their shared respect for just how hard it is to keep their oil and gas empires humming. Commiserating in the challenge of figuring out how to find growth when you’re already the biggest in the world.

Just as Putin is unlikely to give back Crimea, you can forget about a company as growth-hungry as Exxon willingly backing away from its Kremlin connections out of some perceived patriotic American duty. As Tillerson’s predecessor Lee Raymond famously said (quoted in Steve Coll’s book Private Empire: ExxonMobil and American Power): “I’m not a U.S. company and I don’t make decisions based on what’s good for the U.S.” More here from Forbes.

The U.S. military is quite concerned about Russia’s aggression in the Artic as the Russians are using the oil exploration as a dual use mission, the other being espionage while it appears Tillerson and Putin have come to an accommodation on joint operations. Will this affect national security? Already has and includes China.

The U.S. intelligence focus is chiefly aimed at Russia’s military buildup in the far north under President Vladimir Putin. The country’s Northern Fleet is based above the Arctic Circle at Murmansk.

The Russian government announced plans in March 2014 to reopen 10 former Soviet-era military bases along the Arctic seaboard, including 14 airfields, that were closed after the end of the Cold War. A shipyard in northern Russia also is constructing four nuclear-powered submarines.

Alaska Gov. Bill Walker complained that the Pentagon is closing bases and shedding troops while Moscow has begun rebuilding a military force that was eviscerated after the collapse of the Soviet Union.

“It’s the biggest buildup of the Russian military since the Cold War,” Walker told reporters during Obama’s visit to his state. “They’re reopening 10 bases and building four more, and they’re all in the Arctic, so here we are in the middle of the pond, feeling a little bit uncomfortable with the military drawdown.” More here from the LATimes.

In 2014: Russia’s state-run OAO Rosneft said a well drilled in the Kara Sea region of the Arctic Ocean with Exxon Mobil Corp. struck oil, showing the region has the potential to become one of the world’s most important crude-producing areas. The discovery sharpens the dispute between Russia and the U.S. over President Vladimir Putin’s actions in Ukraine. The well was drilled before the Oct. 10 deadline Exxon was granted by the U.S. government under sanctions barring American companies from working in Russia’s Arctic offshore. Rosneft and Exxon won’t be able to do more drilling, putting the exploration and development of the area on hold despite the find announced today. More here from Bloomberg.

Related reading: For Putin and Russia it is Articulus (Crisis)

In summary, going back to perestroika, perhaps Tillerson and Trump need to apply it beginning now. The implications going forward are huge and no one can predict the consequences due to all the moving parts. We do know the U.S. sanctions and those of Europe applied to the Russian oil company Rosneft have had some affect and should in part due to Crimea and Ukraine. The balance of the Baltic States stability remain in question due to the continued aggression by Russia in the region. Russia has sold off some ownership in Rosneft to raise capital, $11 billion worth of capital. It is most interesting Qatar is a financial player now in Rosneft. Qatar is the satellite Taliban headquarters and it was where the Taliban 5 were shipped to from Guantanamo Bay. A Qatari official said of the Gitmo detainees:

A Qatar official said the Taliban men, who have been granted Qatari residency permits, will not be treated like prisoners while in Doha and no U.S. officials will be involved in monitoring their movement while in the country.

“Under the deal they have to stay in Qatar for a year and then they will be allowed to travel outside the country… They can go back to Afghanistan if they want to,” the official said. More from Reuters in 2014.

It all got complicated real fast eh? Order of Friendship could take on a wider definition beginning in 2017 if Tillerson is confirmed as Secretary of State. What say you?

 

Charity Orgs and Welfare Help Fund Terror

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UK Welfare Payments ‘Help Fund Islamist Terror Plots’

HeatStreet: One of the Brussels bombing suspects was given £3,000 of British welfare payments by a group of Islamist fanatics, it has emerged.

The so-called “Man in the Hat” (pictured) – whose real name is Mohamed Abrini – has been linked to the terror cell behind this year’s Brussels suicide bomb and last year’s Paris gun attacks that claimed a total of 162 lives.

Abrini, who is 31, was allegedly captured on CCTV after the Brussels Zaventem airport suicide bombing on March 22 and is awaiting trial in Belgium.

Now it’s come to light that months before the Brussels attack he received £3,000 of British welfare cash from Zakaria Boufassil, 26, a Belgian citizen living in Birmingham, England.

Boufassil was convicted in a London court yesterday of supplying the money to Abrini in July 2015.

Abrini was apparently sent from Syria to Britain by a member of his terror cell to collect the funds.

Abrini and Boufassil met in a Birmingham park where the handover is believed to have taken place.

The cash was obtained from housing and child welfare payments paid in error to another Belgian man – Anouar Haddouchi.

Haddouchi had already been fighting for Isis in Syria for a year and had successfully claimed welfare in Britain since 2009 – despite mainly living in Saudi Arabia.

In total, nearly £11,000 was paid into Haddouchi’s account after he and his wife left for the war zone.

Birmingham city council has apologised for the error, which meant that nearly £6,000 was paid even after it was informed the pair had vacated their housing.

Another man, Mohammed Ali Ahmed, aged 27, was known to British security services and was on police bail when he helped Boufassil hand over the cash to Abrini. He impersonated Haddouchi to gain access to his bank account.

Boufassil was found guilty yesterday at Kingston crown court, west London, of engaging in conduct in preparation of acts of terrorism.

Ahmed pleaded guilty last month to the same offence. They will be sentenced next week.

Terror expert Lord Carlile yesterday claimed that hundreds of thousands of pounds of British welfare payments have helped to bankroll Islamist terrorists, triggering calls for a government inquiry.

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Abrini’s full confession and terror network secret operations is explained here in his testimony.

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Ah but the same goes for the United States. Beyond the Boston bombers, the Tsarnaev brothers, Minneapolis is but one example.

CNS: “… the effort is having the unintended consequence of creating an enclave of immigrants with high unemployment that is both stressing the state’s safety net and creating a rich pool of potential recruiting targets for Islamist terror groups. This population is … being targeted by Islamist terror organizations like the Islamic State and al-Shabab, a Somalia-based group with links to al Qaeda, according to U.S. officials. Among Minnesota-based Somali-Americans, American converts to Islam or Somali refugees, there have been numerous convictions for various levels of collaboration with Islamist terror groups, plus reports of fighting with al-Shabab or other Islamist groups.”

Yup, tax dollars for terrorists.

It seems that these bums want a little excitement in their lives.

So they’re joining al-Shabab.

“Since 2008, as many as 40 men from Minneapolis have joined Islamist groups after being pulled in by jihadists through social media, federal officials say. Last year, an American youth named Douglas McAuthur McCain died in Syria fighting for the Islamic State. Mr. McCain was recruited in Minnesota, where he lived. In 2009, another Minnesota youth, Troy Kastigar posted a recruiting video for al-Shabab before he was killed fighting for the terrorist group in Somalia. Kastigar and McCain are thought to have been friends. That same year a Somali man who left Minneapolis joined al-Shabab and blew himself up in a suicide bombing at an Ethiopian consulate in Somalia, killing 24 people.”

General Kelly Pegged to Head DHS

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This is going to take another waiver…. I hope that early on in the Trump administration there will be a final act to list and designate drug cartels as terror organizations. Fair warning however, the economies of Latin American countries could financially collapse.

 FreeBeacon

It is also notable that General Kelly lost a son to the enemy known as the Taliban in 2010 in Afghanistan.

WaPo: Donald Trump has chosen retired Marine Gen. John F. Kelly to run the Department of Homeland Security, turning to a blunt-spoken border security hawk who clashed with the Obama administration over women in combat and plans to close the prison at Guantanamo Bay, according to people familiar with the decision.

Kelly, who retired in February as chief of U.S. Southern Command, would inherit a massive and often troubled department responsible for overseeing perhaps the most controversial part of Trump’s agenda: his proposed crackdown on illegal immigration. DHS is the third-largest Cabinet department, with more than 240,000 employees who do everything from fight terrorism to protect the president and enforce immigration laws.

Kelly, 66, is a widely respected military officer who served for more than 40 years, and he is not expected to face difficulty winning Senate confirmation. Trump’s team was drawn to him because of his southwest border expertise, people familiar with the transition said. Like the president-elect Kelly has sounded the alarm about drugs, terrorism and other cross-border threats he seems as emanating from Mexico and Central and South America.

Yet Kelly’s nomination could raise questions about what critics see as Trump’s tendency to surround himself with too many military figures. Trump has also selected retired Marine Gen. James N. Mattis for defense secretary and retired Lt. Gen. Michael T. Flynn as national security adviser, while retired Army Gen. David Petraeus is under consideration for secretary of state.

Kelly, a Boston native, was chosen over an array of other candidates who also met with Trump after his surprise election victory last month. Those in contention included Frances Townsend, a top homeland security and counterterrorism official in the George W. Bush administration; Milwaukee County sheriff David Clarke and Kansas Secretary of State Kris Kobach. Clarke and Kobach are vocal Trump backers, with Kobach being nationally known for his strong views on restricting illegal immigration. More here.

 MilitaryTimes

**** Why is General Kelly a stellar choice for the Department of Homeland Security? In 2015, in part his testimony before the Senate Armed Services Committee gives us a huge clue:

Last year, almost half a million migrants1 from Central America and Mexico—including over 50,000 unaccompanied children (UAC) and families—were apprehended on our border, many fleeing violence, poverty, and the spreading influence of criminal networks and gangs. Assistant Secretary of State Roberta Jacobson testified that the “UAC migration serves as a warning sign that the serious and longstanding challenges in Central America are worsening.”2 In my opinion, the relative ease with which human smugglers moved tens of thousands of people to our nation’s doorstep also serves as another warning sign: these smuggling routes are a potential vulnerability to our homeland. As I stated last year, terrorist organizations could seek to leverage those same smuggling routes to move operatives with intent to cause grave harm to our citizens or even bring weapons of mass destruction into the United States. Mr. Chairman, Members, addressing the root causes of insecurity and instability is not just in the region’s interests, but ours as well, which is why I support President Obama’s commitment to increase assistance to Central America.

These and other challenges underscore the enduring importance of U.S. Southern Command’s mission to protect our southern approaches. We do not and cannot do this mission alone. Our strong partnerships with the U.S. interagency—especially with the Department of Homeland Security (DHS), the U.S. Coast Guard, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), and the Departments of Treasury and State—are integral to our efforts to ensure the forward defense of the U.S. homeland. We are also fortunate to have strong, capable partners like Colombia, Chile, Brazil, El Salvador, and Panama, regional

leaders and outstanding contributors to hemispheric and international security. Given our limited intelligence assets, interagency relationships and bilateral cooperation are critical to identifying and monitoring threats to U.S. national security and regional stability.

I am also troubled by the financial and operational overlap between criminal and terrorist networks in the region. Although the extent of criminal-terrorist cooperation is unclear, what is clear is that terrorists and militant organizations easily tap into the international illicit marketplace to underwrite their activities and obtain arms and funding to conduct operations.4 It’s easy to see why: illicit trafficking is estimated to be a $650 billion industry—larger than the GDP of all but 20 countries in the world—and less than 1 percent of global illicit financial flows is currently being seized or frozen.5 The terrorist group Lebanese Hezbollah—which has long viewed the region as a potential attack venue against Israeli or other Western targets—has supporters and sympathizers in Lebanese diaspora communities in Latin America, some of whom are involved in lucrative illicit activities like money laundering and trafficking in counterfeit goods and drugs. These clan-based criminal networks exploit corruption and lax law enforcement in places like the Tri-Border Area of Brazil, Paraguay, and Argentina and the Colon Free Trade Zone in Panama and generate revenue, an unknown amount of which is transferred to Lebanese Hezbollah. Unfortunately, our limited intelligence capabilities make it difficult to fully assess the amount of terrorist financing generated in Latin America, or understand the scope of possible criminal-terrorist collaboration. You can read his presentation and testimony here.