Category Archives: Industry Jobs Oil Economics

IRS: Tracking Cell Phones, Billions in Fraud Refunds

Posted on by

IRS Can Track Your Cell Phone, but Leaves Billions in Taxes Uncollected

DailySignal: While the Internal Revenue Service continues to leave uncollected tax money on the table, the agency beefed up its surveillance capabilities in a move that alarms both conservative and liberal privacy advocates.

Now some complain the IRS is acting too much like Big Brother and not enough like a traditional taxman.

Since 2006, the IRS has overseen an annual tax gap—the shortfall between taxes owed and collected—of about $385 billion, government analysts say. And according to an April report, the agency has not implemented 70 of 112 actions identified by the Government Accountability Office to close that loop.

In 2009, though, the IRS purchased a “cell-site simulator,” more commonly known as Stingray technology. And since November, the agency has been trying to buy another of the devices.

Like something from a spy movie, a Stingray device mimics a cellphone tower, tricking all mobile phones in an area into revealing their location and numbers. Authorities can deploy the powerful technology to tag and track an individual’s location in real time.

More advanced versions of the devices can be used to copy information stored on a cellphone and to download malware remotely.

The devices are as controversial as they are prevalent. According to the American Civil Liberties Union, 61 agencies in 23 states and the District of Columbia own the devices.

IRS Commissioner John Koskinen says the IRS uses its Stingray to hunt down fraudsters and stop money laundering. The agency’s use of the devices remained a secret until an October report in the Guardian.

In a November letter to House Oversight Chairman Jason Chaffetz, R-Utah, Koskinen wrote that the agency’s technology “cannot be used to intercept the content of real-time communications” such as voicemails, text messages, and emails. Instead, the IRS chief said, the device has been used “to track 37 phone numbers.”

And the IRS commissioner insists his agency deploys the tech only in accordance with state and federal laws.

But during an April 13 hearing of the Oversight and Government Reform Committee, the deputy IRS commissioner for service and enforcement, John Dalrymple, couldn’t say whether the IRS obtained a warrant before activating the device.

Rep. Jim Jordan, R-Ohio, says he finds that concerning.

With a federal budget deficit projected at $544 billion in 2016, Jordan told The Daily Signal he’d rather have the IRS focus on “their fundamental job, which is to collect revenue due to the federal Treasury.” He added:

The GAO has 112 things they suggest, recommendations for the IRS to actually deal with the $385 billion dollar tax gap. Not one of those recommendations was to purchase a second Stingray unit.

More than a misappropriation of resources, the chairman of the House Freedom Caucus said, he fears the IRS could abuse the technology to monitor political groups like it did in 2013, when the agency began targeting conservative nonprofits.

“Now you have this same agency, who again for a long period of time went after people for exercising their First Amendment free speech rights, are using this technology and without a Fourth Amendment probable cause warrant,” Jordan said.

Nathan Wessler, an attorney with the American Civil Liberties Union, said the technology poses a significant threat even when gathering basic information like names and numbers. In an interview with The Daily Signal, Wessler said Stingray devices could be “quite chilling on people’s right to protest.”

And there’s already a precedent for misconduct, albeit at a more local level.

Wessler points to a 2003 incident when the Miami-Dade Police Department purchased a Stingray device to monitor a protest of a conference on the Free Trade Area of the Americas. According to an expense report obtained by the ACLU, police wanted the device because they “anticipated criminal activities.”

“It’s a pretty short step from those words to being concerned about the police intentionally downloading a list of every protester who shows up at some demonstration,” Wessler said. “It’s a powerful way to know who’s there.”

The IRS Criminal Investigations Division is already one of the more elite investigative agencies. Koskinen boasts that in 2015 the division achieved a 93.2 percent conviction rate, “the highest in all of federal law enforcement.”

It’s an open question whether the agency needs Stingray technology to complete its mission.

The IRS did not respond to The Daily Signal’s requests for comment made by emails and phone calls.

Paul Larkin argues that the nature of IRS investigations makes real-time intelligence irrelevant. Larkin, senior legal research fellow at The Heritage Foundation, told The Daily Signal that IRS agents are following a paper trail to investigate previous crimes:

There is no good reason the IRS would ever need real-time data information. The crimes that the IRS investigates all occurred in the past. They’re investigating fraud against the government that’s already happened. They don’t have crimes in progress like a burglary.

But if the IRS ever needed to track a suspect in the moment, Larkin said, there’s a practical solution—teamwork. He explains that there’s “no legal hurdle” that prohibits the IRS from teaming up, for instance, with the Department of Justice and borrowing its Stingray technology.

Jordan says he isn’t ready to accept that the IRS ever needs access to the device.

“Really, should the IRS have this and be using this at all?” the Ohio Republican said. “I tend to think you’d be better off with this technology not being in their hands.”

******

The 23-page report is actually quite readable, and worth looking at if you’ve been a victim of identity theft or refund fraud, you’re a tax preparer, or you’re interested in the future of how Americans file our taxes.

  1. The IRS paid out $3.1 billion in refunds to scammers last year. We’ve discussed in the past how this scam works: someone with basic information about a U.S. taxpayer files a return with fake information, depositing their refund in the scammer’s own account. It’s a sophisticated operation and very lucrative. Additional 5 items are here, a must read from the Consumerist.

Cyber: New Strategic Operation v. ISIS

Posted on by

The US Cyber Command started the attacks on the Islamic State

The US Government has announced to have launched a series of cyber attacks against the Islamic State coordinated by the Cyber Command.

SecurityAffairs: The US Government has launched its cyber offensive against the coordinated by the Cyber Command. The strategy is clear, the use of hacking operations and cyber weapons will aim to destroy computer systems used by the ISIL and to track its cyber hubs.

In March, Senior Pentagon officials revealed the military’s first use of cyber warfare operations against the ISIL terrorist group.

The US military has started launching cyber attacks against members of the terrorist organization ISIS as part of the operation conducted to take back the Iraqi city of Mosul.

The US military is using cyber tools to contrast the ISIS troops in the area, interfering  members’ operation and communication.

Now the US Government wants to use all the hacking tools in its cyber arsenal against the Islamic State. The New Your Times revealed that until now the Cyber Command operations were more focused on cyber disputes against Russia, China, Iran, and North Korea.

“The National Security Agency, which specializes in electronic surveillance, has for years listened intensely to the militants of the Islamic State, and those reports are often part of the president’s daily intelligence briefing.” states the NYT. “But the N.S.A.’s military counterpart, Cyber Command, was focused largely on Russia, China, Iran and North Korea — where cyberattacks on the United States most frequently originate — and had run virtually no operations against what has become the most dangerous terrorist organization in the world.”

The goal of the new campaign is to disrupt the propaganda activities managed by the Islamic State, but also interfere with IS daily functions, like paying its fighters.

“Our cyberoperations are disrupting their command-and-control and communications,” Mr. Obama saidat the C.I.A. headquarters in Langley, Va., on countering the Islamic State.

The deputy secretary of defense, Robert O. Work, confirmed the goals of the cyber operations that were conducted by a small number of “national mission teams.”

“We are dropping cyberbombs,” Mr. Work said. “We have never done that before.”

The NYT, citing interviews withs senior and midlevel officials, confirmed that the US cyber army has begun to deploy a series of “implants” in the networks of the Islamic State to spy on its commanders.

“Now, the plan is to imitate them or to alter their messages, with the aim of redirecting militants to areas more vulnerable to attack by American drones or local ground forces.” continues the NYT. “In other cases, officials said, the United States may complement operations to bomb warehouses full of cash by using cyberattacks to interrupt electronic transfers and misdirect payments.”

The fact that the US Government is admitting the use of cyber weapons that would have unpredictable effects over vast areas of the planet raising major questions over an invasion of sovereignty.

Of course, now we are speaking to contrast the Islamic State and everything seems to be admitted to destroying the threat.

“We’re trying to both physically and virtually isolate ISIL, limit their ability to conduct command and control, limit their ability to communicate with each other, limit their ability to conduct operations locally and tactically,” said Gen. Joseph F. Dunford Jr., the chairman of the Joint Chiefs of Staff,

“But I’ll be one of the first ones arguing that that’s about all we should talk about,” General Dunford said. “We want them to be surprised when we conduct cyberoperations. And, frankly, they’re going to experience some friction that’s associated with us and some friction that’s just associated with the normal course of events in dealing in the information age.”

Of course, part of the intelligence consider very dangerous the use of the implants against the Islamic State. The same implants are used to infiltrate the networks of foreign government and there is the concrete risk that these operations allow foreign intelligence agencies to detect them and neutralize their effects. Another side effect is that the Islamic State militants would stop the use of a communications channel starting one that was harder to monitor.

“N.S.A. officials complained that once the implants were used to attack, the Islamic State militants would stop the use of a communications channel and perhaps start one that was harder to find, penetrate or de-encrypt.” states the NYT.

“It’s a delicate balance,” said Mr. Obama’s national security adviser, Susan E. Rice. “We still have to keep our eye on the Russia-China state-sponsored activity, but this was a new mission, one where we have to balance the collection equities against the disruption equities.”

Lisa O. Monaco, a deputy national security adviser and Mr. Obama’s top adviser met technology executives at IT giants calling for action against the online activities of the Islamic State.

****  

In part from the DailyBeast: The American military’s campaign of cyber attacks against ISIS is far more serious than what the president laid out in his bland description. Three U.S. officials told The Daily Beast that those operations have moved beyond mere disruption and are entering a new, more aggressive phase that is targeted at individuals and is gleaning intelligence that could help capture and kill more ISIS fighters.

As the U.S. ratchets up its online offensive against the terror group, U.S. military hackers are now breaking into the computers of individual ISIS fighters. Once inside the machines, these hackers are implanting viruses and malicious software that allow them to mine their devices for intelligence, such as names of members and their contacts, as well as insights into the group’s plans, the officials said, speaking on condition of anonymity to describe sensitive operations.

In remarks at CIA headquarters in Langley, Virginia, this week, Obama confirmed that cyber operations were underway and noted that recently the U.S. has either captured or killed several key ISIS figures, including Sulayman Dawud al-Bakkar, a leader of its chemical weapons program, and “Haji Iman,” the man purported to be ISIS’s second in command.

The military has also used cyber operations to block ISIS’s use of encrypted communications, in order to force members to use less secure channels where they can be more easily monitored, officials said. That tactic appears to be a response to ISIS’s effective use of encrypted text applications in particular, which officials had said previously made it harder for the military and intelligence community to track individual fighters.

What About Those Firms Hosting Hillary Speeches

Posted on by

  

Firms that paid for Clinton speeches have US gov’t interests

MSN/AP: WASHINGTON — It’s not just Wall Street banks. Most companies and groups that paid Democratic presidential candidate Hillary Clinton to speak between 2013 and 2015 have lobbied federal agencies in recent years, and more than one-third are government contractors, an Associated Press review has found. Their interests are sprawling and would follow Clinton to the White House should she win election this fall.

The AP’s review of federal records, regulatory filings and correspondence showed that almost all the 82 corporations, trade associations and other groups that paid for or sponsored Clinton’s speeches have actively sought to sway the government — lobbying, bidding for contracts, commenting on federal policy and in some cases contacting State Department officials or Clinton herself during her tenure as secretary of state.

CLINTON SPEAKING FEES: 3 mm x 76 mm;

Presidents are not generally bound by many of the ethics and conflict-of-interest regulations that apply to non-elected executive branch officials, although they are subject to laws covering related conduct, such as bribery and illegal gratuities. Clinton’s 94 paid appearances over two years on the speech circuit leave her open to scrutiny over decisions she would make in the White House or influence that may affect the interests of her speech sponsors.

Rival presidential candidate Sen. Bernie Sanders and Republican critics have mocked Clinton over her closed-door talks to banks and investment firms, saying she is too closely aligned to Wall Street to curb its abuses. Sanders said in a speech in New York that Clinton earned an average of about $225,000 for each speech and goaded her for declining to release transcripts.

“If somebody gets paid $225,000 for a speech, it must be an unbelievably extraordinary speech,” Sanders said at an outdoor rally at Washington Square Park last week in advance of the New York primary. “I kind of think if that $225,000 speech was so extraordinary, she should release the transcripts and share it with all of us.”

Clinton said again Thursday she will release transcripts of her paid speeches to private groups or companies when other political candidates do the same. She compared such disclosures to the long-standing practice of politicians being expected to release their income tax returns, which she did far earlier and more thoroughly than Sanders in the campaign.

“Now there’s a new request to release transcripts of speeches that have been given,” Clinton said during a town hall. “When everybody agrees to do that, I will as well because I think it’s important we all abide by the same standards. So, let’s do the tax return standard first because that’s been around for a really long time.”

Clinton has said she can be trusted to spurn her donors on critical issues, noting that President Barack Obama was tough on Wall Street despite his prolific fundraising there. But her earnings of more than $21.6 million from such a wide range of interest groups could affect public confidence in her proclaimed independence.

“The problem is whether all these interests who paid her to appear before them will expect to have special access when they have an issue before the government,” said Lawrence M. Noble, general counsel of the Campaign Legal Center, a Washington-based election watchdog group.

HILLARY CLINTON SPEECHES: 5 mm x 254 mm;

The AP review identified at least 60 firms and organizations that sponsored Clinton’s speeches and lobbied the U.S. government at some point since the start of the Obama administration. Over the same period, at least 30 also profited from government contracts. Twenty-two groups lobbied the State Department during Clinton’s tenure as secretary of state. They include familiar Wall Street financial houses such as Morgan Stanley and Goldman Sachs Group Inc., corporate giants like General Electric Co. and Verizon Communications Inc., and lesser-known entities such as the Institute of Scrap Recycling Industries and the Global Business Travel Association.

Clinton’s two-year speaking tour, which took place after she resigned as secretary of state, “puts her in the position of having to disavow that money is an influence on her while at the same time backing campaign reform based on the influence on money,” said Noble, a former general counsel at the Federal Election Commission. “It ends up creating the appearance of influence.”

Clinton dismissed those concerns in a town hall in Columbia, South Carolina, saying that “the argument seems to be that if you ever took money from any business of any kind, then you can’t fulfill your public responsibilities. Well, that’s just not the case.”

Clinton’s spokesman, Brian Fallon, said in a statement, “Hillary Clinton’s record shows she has consistently taken on these very same industries, and to suggest she would deviate from that at all as president is completely baseless.”

Despite months of controversy over her speeches to Wall Street patrons, Clinton’s biggest rewards came from Washington’s trade associations, the lobbying groups that push aggressively for industry interests. Trade groups paid Clinton more than $7.1 million, the review showed.

The National Association of Realtors spent $38.5 million on government contacts in 2013, the same year it paid Clinton $225,000 to appear at the group’s gathering in San Francisco. A group spokesman said Clinton was among former U.S. officials invited to share their experiences but said she was not paid as part of its lobbying activities.

The Biotechnology Industry Organization, which represents biotech and pharmaceutical firms, spent between $7 million and $8.5 million annually on lobbying since 2008, including contacts with the State Department — during Clinton’s tenure — on the agency’s biotech discussions with foreign governments. The trade group, which hosted Clinton for $335,000 at its event in San Diego in June 2014, has won more than $425,000 in federal payments since 2008 in work for the National Science Foundation and other agencies. The group did not respond to phone calls or emails for comment from AP.

The financial services and investment industry accounted for about $4.1 million of Clinton’s earnings. Its ranks included not only Wall Street powerhouses like Morgan Stanley, Goldman Sachs and Bank of America Corp., but also private equity and hedge funds like Kohlberg Kravis Roberts & Co. LP and Apollo Global Management LLC and foreign-owned banks such as Deutsche Bank AG and the Canada Imperial Bank of Commerce. Goldman Sachs, which gave Clinton $675,000 for three speeches in 2013, and Morgan Stanley, which paid her $225,000 for one speech the same year, both spent millions lobbying the U.S. during Clinton’s term at the State Department.

Nearly three dozen of Clinton’s benefactors spent more than $1 million annually on contacts with officials and Congress during the same year they paid her to appear at their corporate or association events, according to federal lobbying records. Many earned millions more in government contracts — indications of the regulatory and policy stances the groups might advocate during a Clinton presidency.

General Electric, which paid her $225,000 for a speech in Boca Raton, Florida, in January 2014, has the most extensive government portfolio. GE has spent between $15.1 million and $39.2 million annually on lobbying. The company has won nearly $50 million in government work since 2008, including $1.7 million from the State Department for lab equipment and data processing during Clinton’s tenure. The firm also lobbied the State Department all four years under Clinton on issues including trade and Iran sanctions.

As secretary of state, Clinton visited a GE aviation facility in Singapore and touted the State Department’s role aiding GE industrial and military deals abroad. Clinton met with GE Chairman Jeffrey Immelt once about the agency’s efforts to salvage a planned business exposition in Shanghai and also talked with him by phone, according to her calendars.

A GE spokeswoman said, “GE works closely with the U.S. government and State Department, which often advocates for U.S. exporters.”

Clinton sought to defuse the issue of her Wall Street speeches during a February debate with Sanders by explaining that she “spoke to heart doctors, I spoke to the American Camping Association, I spoke to auto dealers, and, yes, I spoke to firms on Wall Street.”

Even the sponsors Clinton cited in her defense engaged in public advocacy — an indication of how many might seek favors if Clinton were elected.

The Cardiovascular Research Foundation, a fundraising group for cutting-edge heart medicine, paid Clinton $275,000 for a speech in Washington in September 2014. That same year, the organization joined other medical and health care groups in urging the Federal Drug Administration to reconsider its generic labeling rules. Foundation spokeswoman Irma Damhuis said Clinton was invited as a “recognized thought leader,” adding that “decisions on keynote speakers are made without a political agenda.”

The National Automobile Dealers Association paid Clinton $325,000 for a convention speech in New Orleans in January 2014. That same year, the trade group spent $3.2 million lobbying federal officials on taxes, automotive and trucking issues, labor and finance. A spokesman said the group’s lobbying and convention activities were separate.

The camping group also paid for lobbying in recent years, including $40,000 in 2015 on Transportation Department administrative actions, according to federal records. The group’s New York and New Jersey affiliate paid Clinton $260,000 for a March 2015 speech in Atlantic City.

Deirdre Petting, an executive with the national group, said its lobbying was separate from the affiliate’s decision to invite Clinton for the event.

Europe Tells Obama AGAIN to Mind your Own Business

Posted on by

The vote is very….very close so far.

CNNMoney: U.K. citizens worldwide will vote in the historic referendum on June 23. Prime Minister David Cameron will campaign for the U.K. to stay in the EU. The British economy is the second largest in the EU. Its decision on whether to stay or go will have big implications not only for the people of the U.K. but also global financial markets and the future of Europe. More here.

‘Monstrous interference’: UK pols furious at Obama’s plan to intervene in EU debate

FNC: President Obama looks set to wade into the contentious debate in the United Kingdom over whether or not the nation should remain a member of the European Union – and some Brits are angry at the president’s intrusion into a delicate UK issue ahead of a major vote.

Obama will arrive in London late Thursday for a three-day trip. On Friday he will meet Prime Minister David Cameron — who is reportedly keen to get Obama’s backing ahead of the June 23 referendum, in which Britons will choose to remain or leave the European Union.

Cameron is in a difficult position, backing the “Remain” campaign, while many within his own Conservative Party are campaigning for the “Leave” or “Brexit” (British-Exit) campaign. Polls have shows the race is tight, with the Remain campaign holding an edge as small as one percent.

The White House has said Obama is willing to offer his opinion and may announce that he favors Cameron’s position – that Britain should remain in the European Union.

“If he’s asked his view as a friend, he will offer it,” U.S. Deputy National Security Adviser Ben Rhodes said. “As the president has said, we support a strong United Kingdom in the European Union.”

Those calling for Britain to leave the European Union are not happy at that news, with U.K. Independence Party leader Nigel Farage saying Obama should stay home.

‘A monstrous interference,” Farage told Fox News Thursday. “I’d rather he stayed in Washington, frankly, if that’s what he’s going to do.”

“You wouldn’t expect the British Prime Minister to intervene in your presidential election, you wouldn’t expect the Prime Minister to endorse one candidate or another. Perhaps he’s another one of those people who doesn’t understand what [the EU] is,” Farage said.

In March, a letter sent from Conservative MP and former cabinet minister Liam Fox, and co-signed by over 100 MPs from four different political parties, asked the U.S. Ambassador to the U.K. to persuade Obama not to intervene, calling any such intervention “extremely controversial and potentially damaging.”

“It has long been the established practice not to interfere in the domestic political affairs of our allies and we hope that this will continue to be the case,” the letter to Ambassador Matthew Barzun read.

“While the current U.S. administration may have a view on the desirability or otherwise of Britain’s continued membership of the E.U., any explicit intervention in the debate is likely to be extremely controversial and potentially damaging,” the letter said.

London Mayor Boris Johnson — who was born in New York and has expressed strong support for the UK-U.S. relationship — accused Obama of hypocrisy.

“I just think it’s paradoxical that the United States, which wouldn’t dream of allowing the slightest infringement of its own sovereignty, should be lecturing other countries about the need to enmesh themselves ever deeper in a federal superstate,” Johnson said Tuesday.

Cameron however, has said that the advice of allies was welcome, saying “listening to what our friends say in the world is not a bad idea.”

“I struggle to find the leader of any friendly country that thinks we should leave,” he said Wednesday.

***** For the explanation of the referendum and graphics by The Economist, go here.

Keeping America, America? Britain First Action

Posted on by

Does we have the same attitudes? Is this a call to action in America?

Example…is this happening here in America?

Say NO to Labour’s Muslim mayor!

At a funeral in South London, Sadiq Khan, the local Labour MP and now Labour candidate to be mayor of London, shook hands with convicted terrorist Babar Ahmad, a man who has been blamed for inspiring a generation of extremists, including the gang behind the London bombings of July 7, 2005.

The pair exchanged brief pleasantries before Khan moved on. This happened only a few months ago, around the time of Khan’s nomination as Labour’s mayoral candidate.

Sadiq Khan

Khan shared a platform with Yasser al-Siri, a convicted terrorist and associate of hate preacher Abu Qatada, and Sajeel Shahid, a militant who helped to train the ringleader of the London bombings.

Recently, it emerged that his parliamentary assistant posted a series of highly offensive Islamist, homophobic and misogynistic messages online. Shueb Salar also posed for photos with guns.

Khan was also exposed when it was revealed he ‘followed’ two Isis supporters on Twitter. One posted links to propaganda videos; the other is the brother of a man convicted of supporting insurgents in Afghanistan.

Khan’s former brother-in-law, Makbool Javaid, had links with the extremist group Al-Muhajiroun, an organisation that praised the 9/11 attacks and the 7/7 bombings. Javaid appeared at London events alongside some of the country’s most notorious hate preachers, including the now banned cleric Omar Bakri.

Both before and after Khan became an MP, he shared speaking platforms with Stop Political Terror, a group supported by a man dubbed the ‘Bin Laden of the internet’. Anwar al-Awlaki, an imam linked to Al Qaeda, preached to three of the 9/11 hijackers and became the first American to be targeted and killed in a U.S. drone strike.

Stop Political Terror later merged with Cage, a London campaign group that described the notorious ISIS executioner Jihadi John as “a beautiful young man”.