Keep this post in your bookmarks as we enter into the 2020 general election….
Primer:
1. China plants industrial espionage operatives in the U.S. that steal government contract secrets and sell them back to China. FBI caught at least one.
2. Through cyber espionage, China has stolen much of the F-35 technology, more than 50 terabytes.
3. John Kerry and Joe Biden did exactly the same thing as Hillary…sold access for money while exploiting it all as diplomatic missions with the title(s) of bi-lateral agreements.
4. Subpoena former Treasury Secretary Jack Lew and ask him about the CFIUS approvals of Chinese back enterprises. We may surely need to go back to former Treasury Secretary, Tim Geithner, did he set the table for all this with Obama’s approval creating that ‘Asia Pivot‘?
5. What does Congress know about foreign investments and when do they know it? They get reports, but who is asking questions, anyone?
NYP: Joe Biden and John Kerry have been pillars of the Washington establishment for more than 30 years. Biden is one of the most popular politicians in our nation’s capital.
His demeanor, sense of humor, and even his friendly gaffes have allowed him to form close relationships with both Democrats and Republicans. His public image is built around his “Lunch Bucket Joe” persona. As he reminds the American people on regular occasions, he has little wealth to show for his career, despite having reached the vice presidency.
One of his closest political allies in Washington is former senator and former Secretary of State John Kerry. “Lunch Bucket Joe” he ain’t; Kerry is more patrician than earthy. But the two men became close while serving for several decades together in the US Senate. The two “often talked on matters of foreign policy,” says Jules Witcover in his Biden biography.
So their sons going into business together in June 2009 was not exactly a bolt out of the blue.
But with whom their sons cut lucrative deals while the elder two were steering the ship of state is more of a surprise.
What Hunter Biden, the son of America’s vice president, and Christopher Heinz, the stepson of the chairman of the Senate Committee on Foreign Relations (later to be secretary of state), were creating was an international private equity firm. It was anchored by the Heinz family alternative investment fund, Rosemont Capital. The new firm would be populated by political loyalists and positioned to strike profitable deals overseas with foreign governments and officials with whom the US government was negotiating.
Hunter Biden, Vice President Joe Biden’s youngest son, had gone through a series of jobs since graduating from Yale Law School in 1996, including the hedge-fund business.
By the summer of 2009, the 39-year-old Hunter joined forces with the son of another powerful figure in American politics, Chris Heinz. Senator John Heinz of Pennsylvania had tragically died in a 1991 airplane crash when Chris was 18. Chris, his brothers, and his mother inherited a large chunk of the family’s vast ketchup fortune, including a network of investment funds and a Pennsylvania estate, among other properties. In May 1995, his mother, Teresa, married Senator John Kerry of Massachusetts. That same year, Chris graduated from Yale, and then went on to get his MBA from Harvard Business School.
Joining them in the Rosemont venture was Devon Archer, a longtime Heinz and Kerry friend.
The three friends established a series of related LLCs. The trunk of the tree was Rosemont Capital, the alternative investment fund of the Heinz Family Office. Rosemont Farm is the name of the Heinz family’s 90-acre estate outside Fox Chapel, Pennsylvania.
The small fund grew quickly. According to an email revealed as part of a Securities and Exchange Commission investigation, Rosemont described themselves as “a $2.4 billion private equity firm co-owned by Hunter Biden and Chris Heinz,” with Devon Archer as “Managing Partner.”
The partners attached several branches to the Rosemont Capital trunk, including Rosemont Seneca Partners, LLC, Rosemont Seneca Technology Partners, and Rosemont Realty.
Of the various deals in which these Rosemont entities were involved, one of the largest and most troubling concerns was Rosemont Seneca Partners.
Rather than set up shop in New York City, the financial capital of the world, Rosemont Seneca leased space in Washington, DC. They occupied an all-brick building on Wisconsin Avenue, the main thoroughfare of exclusive Georgetown. Their offices would be less than a mile from John and Teresa Kerry’s 23-room Georgetown mansion, and just two miles from both Joe Biden’s office in the White House and his residence at the Naval Observatory.
Over the next seven years, as both Joe Biden and John Kerry negotiated sensitive and high-stakes deals with foreign governments, Rosemont entities secured a series of exclusive deals often with those same foreign governments.
Some of the deals they secured may remain hidden. These Rosemont entities are, after all, within a private equity firm and as such are not required to report or disclose their financial dealings publicly.
Some of their transactions are nevertheless traceable by investigating world capital markets. A troubling pattern emerges from this research, showing how profitable deals were struck with foreign governments on the heels of crucial diplomatic missions carried out by their powerful fathers. Often those foreign entities gained favorable policy actions from the United States government just as the sons were securing favorable financial deals from those same entities.
Nowhere is that more true than in their commercial dealings with Chinese government-backed enterprises.
Rosemont Seneca joined forces in doing business in China with another politically connected consultancy called the Thornton Group. The Massachusetts-based firm is headed by James Bulger, the nephew of the notorious mob hitman James “Whitey” Bulger. Whitey was the leader of the Winter Hill Gang, part of the South Boston mafia. Under indictment for 19 murders, he disappeared. He was later arrested, tried, and convicted.
James Bulger’s father, Whitey’s younger brother, Billy Bulger, serves on the board of directors of the Thornton Group. He was the longtime leader of the Massachusetts state Senate and, with their long overlap by state and by party, a political ally of Massachusetts Senator John Kerry.
Less than a year after opening Rosemont Seneca’s doors, Hunter Biden and Devon Archer were in China, having secured access at the highest levels. Thornton Group’s account of the meeting on their Chinese-language website was telling: Chinese executives “extended their warm welcome” to the “Thornton Group, with its US partner Rosemont Seneca chairman Hunter Biden (second son of the now Vice President Joe Biden).”
The purpose of the meetings was to “explore the possibility of commercial cooperation and opportunity.” Curiously, details about the meeting do not appear on their English-language website.
Also, according to the Thornton Group, the three Americans met with the largest and most powerful government fund leaders in China — even though Rosemont was both new and small.
The timing of this meeting was also curious. It occurred just hours before Hunter Biden’s father, the vice president, met with Chinese President Hu in Washington as part of the Nuclear Security Summit.
There was a second known meeting with many of the same Chinese financial titans in Taiwan in May 2011. For a small firm like Rosemont Seneca with no track record, it was an impressive level of access to China’s largest financial players. And it was just two weeks after Joe Biden had opened up the US-China strategic dialogue with Chinese officials in Washington.
On one of the first days of December 2013, Hunter Biden was jetting across the Pacific Ocean aboard Air Force Two with his father and daughter Finnegan. The vice president was heading to Asia on an extended official trip. Tensions in the region were on the rise.
The American delegation was visiting Japan, China, and South Korea. But it was the visit to China that had the most potential to generate conflict and controversy. The Obama administration had instituted the “Asia Pivot” in its international strategy, shifting attention away from Europe and toward Asia, where China was flexing its muscles.
For Hunter Biden, the trip coincided with a major deal that Rosemont Seneca was striking with the state-owned Bank of China. From his perspective, the timing couldn’t have been better.
Vice President Biden, Hunter Biden and Finnegan arrived to a red carpet and a delegation of Chinese officials. Greeted by Chinese children carrying flowers, the delegation was then whisked to a meeting with Vice President Li Yuanchao and talks with President Xi Jinping.
Hunter and Finnegan Biden joined the vice president for tea with US Ambassador Gary Locke at the Liu Xian Guan Teahouse in the Dongcheng District in Beijing. Where Hunter Biden spent the rest of his time on the trip remains largely a mystery. There are actually more reports of his daughter Finnegan’s activities than his.
What was not reported was the deal that Hunter was securing. Rosemont Seneca Partners had been negotiating an exclusive deal with Chinese officials, which they signed approximately 10 days after Hunter visited China with his father. The most powerful financial institution in China, the government’s Bank of China, was setting up a joint venture with Rosemont Seneca.
The Bank of China is an enormously powerful financial institution. But the Bank of China is very different from the Bank of America. The Bank of China is government-owned, which means that its role as a bank blurs into its role as a tool of the government. The Bank of China provides capital for “China’s economic statecraft,” as scholar James Reilly puts it. Bank loans and deals often occur within the context of a government goal.
Rosemont Seneca and the Bank of China created a $1 billion investment fund called Bohai Harvest RST (BHR), a name that reflected who was involved. Bohai (or Bo Hai), the innermost gulf of the Yellow Sea, was a reference to the Chinese stake in the company. The “RS” referred to Rosemont Seneca. The “T” was Thornton.
The fund enjoyed an unusual and special status in China. BHR touted its “unique Sino-US shareholding structure” and “the global resources and network” that allowed it to secure investment “opportunities.” Funds were backed by the Chinese government.
In short, the Chinese government was literally funding a business that it co-owned along with the sons of two of America’s most powerful decision makers.
The partnership between American princelings and the Chinese government was just a beginning. The actual investment deals that this partnership made were even more problematic. Many of them would have serious national security implications for the United States.
In 2015, BHR joined forces with the automotive subsidiary of the Chinese state-owned military aviation contractor Aviation Industry Corporation of China (AVIC) to buy American “dual-use” parts manufacturer Henniges.
AVIC is a major military contractor in China. It operates “under the direct control of the State Council” and produces a wide array of fighter and bomber aircraft, transports, and drones — primarily designed to compete with the United States.
The company also has a long history of stealing Western technology and applying it to military systems. The year before BHR joined with AVIC, the Wall Street Journal reported that the aviation company had stolen technologies related to the US F-35 stealth fighter and incorporated them in their own stealth fighter, the J-31. AVIC has also been accused of stealing US drone systems and using them to produce their own.
In September 2015, when AVIC bought 51 percent of American precision-parts manufacturer Henniges, the other 49 percent was purchased by the Biden-and-Kerry-linked BHR.
Henniges is recognized as a world leader in anti-vibration technologies in the automotive industry and for its precise, state-of-the-art manufacturing capabilities. Anti-vibration technologies are considered “dual-use” because they can have a military application, according to both the State Department and Department of Commerce.
The technology is also on the restricted Commerce Control List used by the federal government to limit the exports of certain technologies. For that reason, the Henniges deal would require the approval of the Committee on Foreign Investment in the United States (CFIUS), which reviews sensitive business transactions that may have a national security implication.
According to BHR internal documents, the Henniges deal included “arduous and often-times challenging negotiations.” The CFIUS review in 2015 included representatives from numerous government agencies including John Kerry’s State Department.
The deal was approved in 2015.
Excerpted with permission from “Secret Empires: How the American Political Class Hides Corruption and Enriches Family and Friends,” by Peter Schweizer, published by Harper Collins. The book goes on sale March 20.
Category Archives: Legislation
Obama Ordered 500,000 Fugitives Deleted Gun Background Check System
So, while the national student walkout is partisan and in cadence with the democrats, with yet another march is scheduled later this month….there is a bombshell revealed from testimony in a congressional hearing.
On Wednesday, acting FBI deputy director David Bowdich testified during a Senate Judiciary Committee hearing that former President Barack Obama’s Department of Justice forced the FBI to delete over 500,000 fugitives, who had outstanding arrest warrants, from the National Instant Criminal Background Check System (NICS).
“It’s my understanding that under federal law fugitives cannot legally purchase or possess guns,” Senator Dianne Feinstein (D-CA) began. “We’ve heard from local law enforcement that the Justice Department has issued a memo that forced the FBI NICS background check database to drop more than 500,000 names of fugitives with outstanding arrest warrants because it was uncertain whether those fugitives had fled across state lines.”
“Mr. Bowdich, can you describe why this determination was made by the Justice Department?” Feinstein asked.
“That was a decision that was made under the previous administration,” Bowdich replied. “It was the Department of Justice’s Office of Legal Counsel that reviewed the law and believed that it needed to be interpreted so that if someone was a fugitive in a state, there had to be indications that they had crossed state lines.”
Advance the video of the hearing to the 58:51 mark.
According to The Washington Post, the FBI considered any person with an outstanding arrest warrant to be a fugitive. On the other hand, the Bureau of Alcohol Tobacco, Firearms and Explosives defined a fugitive as someone who has an outstanding arrest warrant and has crossed state lines.
That disagreement was settled at the end of Obama’s second term, when the Justice Department’s Office of Legal Counsel sided with the ATF’s interpretation. Under President Donald Trump, the DOJ defined a fugitive as a person who went to another state to dodge criminal prosecution or evade giving testimony in criminal court, and implemented the Office of Legal Counsel’s decision. The decision meant that around half a million fugitives were removed from the National Instant Criminal Background Check System. More here.
When Governors, Mayors and Congress Register as Foreign Agents
It is a matter of law….the democrats and some republicans are providing higher protection for illegals and criminals than they do for just plain ol’ Americans. At least they should be forced to register or something similar like a declaration that they are more loyal to illegals and criminal action than they are to Americas.
Some democrats are posturing to abolish ICE as an agency.
The Democrats mulling a run for the White House in 2020 are facing intense pressure from liberals to campaign on abolishing the agency that enforces federal immigration laws, a proposal that was once relegated to the far-left fringe.
In protesting the Trump administration’s policies toward illegal immigration, liberal commentators and writers have been embracing the idea of gutting the U.S. Immigration and Customs Enforcement agency, which identifies, arrests and deports illegal immigrants inside the United States.
“This is a growing position on the left, and I imagine 2020 Democratic presidential aspirants will have to grapple with it,” liberal writer and MSNBC host Chris Hayes tweeted.
We have seen California become a sanctuary state and now Illinois is too. We have seen mayors refuse to cooperate with ICE supported by their governors. Can states refuse to cooperate with ICE or how about other Federal agencies like ATF or DEA?
As long as these politicians provide legal cover and sanctuary for foreign criminals they should all be registered as ‘foreign agents’ under the FARA.
The Foreign Agents Registration Act (FARA) was enacted in 1938. FARA is a disclosure statute that requires persons acting as agents of foreign principals in a political or quasi-political capacity to make periodic public disclosure of their relationship with the foreign principal, as well as activities, receipts and disbursements in support of those activities. Disclosure of the required information facilitates evaluation by the government and the American people of the statements and activities of such persons in light of their function as foreign agents. The FARA Registration Unit of the Counterintelligence and Export Control Section (CES) in the National Security Division (NSD) is responsible for the administration and enforcement of the Act.
We have a missing illegal criminal from Denver that is part of a case of vehicular homicide….Denver law enforcement let him go under bail even though ICE had a detainer on him….he cannot be found.
Meanwhile, let us look at Illinois shall we?
Illinois Gov. Bruce Rauner smiles while surrounded by law enforcement officials and immigrant rights activists in Chicago’s Little Village neighborhood Monday, Aug. 28, 2017, after signing legislation that will limit how local and state police can cooperate with federal immigration authorities. The narrow measure prohibits police from searching, arresting or detaining someone solely because of immigration status, or because of so-called federal immigration detainers. AP (Ashlee Rezin /)
With mariachis performing in the background, Governor Bruce Rauner signed the TRUST Act on Monday, at a Mexican restaurant in Chicago’s Little Village neighborhood, officially barring cooperation between Illinois police departments and immigration officials.
The TRUST Act, valid in all cases except where a federal judge has issued a warrant for arrest, will make Illinois more welcoming to immigrants and refugees, according to its supporters.
The law denies local law enforcement the ability to detain people on behalf of Immigration and Customs Enforcement (ICE), the federal agency charged with identifying and investigating immigrants present in the country illegally. It also prohibits local officials from inquiring about a person’s immigration status, something Ruiz-Velasco called a “very important protection,” that will make immigrants more comfortable reporting crimes to local police.
“The TRUST Act will ensure that those who live in this state of limbo [as concerns immigration status] can have one certainty: When their lives and their families are in danger, they can turn to the police without their world being taken away from them,” said Serafina Ha, of the Korean immigrant services agency, the Hana Center.
Support for the law came from Illinois law enforcement functionaries, as well as over 170 faith leaders, and over 170 Illinois employers. The Campaign for a Welcoming Illinois, in support of the bill, engaged over 84 organizations and 14,000 people in the state, according to ICIRR.
However some political leaders, including many downstate Republicans, voiced opposition.
“We are a country founded by immigrants, but those were legal immigrants, and I think the last thing Illinois wants is to see a sanctuary state, and this moves us in that direction,” state Sen. Kyle McCarter, a Republican from Lebanon, Ill., told the Chicago Tribune.
Just five Republicans voted for the law in the Illinois Senate, and only one Republican voted for it in the House.
Passing with mainly Democratic support on May 5, 2017, the law had since sat on Governor Rauner’s desk as supporters organized through letters, press conferences and rallies.
“This will provide an unprecedented level of protection for Illinois’ half-million undocumented residents, who could otherwise enter the deportation pipeline through any simple interaction with police including a traffic violation,” ICIRR said in a statement. “Illinois is now the gold standard for statewide protections against deportation.”
The war on 5G Nationally and Internationally
The first, 1G, was invented by Motorola in 1973. The 1G networks provided basic phone service with analog protocols and speeds of 2.4 kilobits per second. Compare that to today’s 4G network speed of 100 megabits per second and 5G’s proposed 100 gigabits per second. Also in 1973, IEEE Member Robert M. Metcalf invented Ethernet, one of the key enablers of wireless and local Internet access. Ethernet is part of the IEEE 802 suite of standards that underpins wireless networking applications and includes access to the Internet. The 802.11 standard is better known by its trademark name: Wi-Fi. More here.
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When fourth generation (4G) services launched early this decade, the U.S. led the way. The Federal Communications Commission (FCC) unlocked valuable spectrum, and carriers responded by accommodating a radical, 20-fold growth in global mobile data traffic. The massive investment in wireless network infrastructure rewarded American consumers with faster wireless speeds at affordable prices. In addition to speeding up smartphones in our pockets, the U.S. economy saw an estimated increase in GDP between $73–$151 billion and up to 700,000 new jobs as a result and America was established as the test bed for innovation in the global digital economy.
Now our country faces a similar opportunity and challenge with fifth generation (5G) mobile networks, and it warrants the attention of consumers, the mobile industry, and policymakers. The economic stakes for 5G may be significantly higher than for 4G, led by large-scale job creation and incubation of new devices, applications, and business models that could dramatically stimulate the U.S. economy. More here.
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As of 2017, development of 5G is being led by several companies, including Samsung, Intel, Qualcomm, Nokia, Huawei, Ericsson, ZTE and others. Huawei and ZTE are part of the Chinese government and all our intelligence agencies have declared they are NOT safe to use in the government realm or the private sector. Canadian media is warning the same due to cyber vulnerabilities. This is all about the expanding digital economy where various cyber currencies will prevail over tangible currency and those respective values cannot be controlled or managed.
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photo
“Those towers are going to go up, and you’re going to have great, great broadband,” Trump said.
But telecom companies don’t have plans to expand 5G to rural areas. Where are they going? To urban and suburban neighborhoods where the business-friendly FCC is considering rules that would limit local governments from having as much of a say over where they go, how they look and how much they can charge for use of public property. Published in partnership with the New York Times
Small cells, the next generation of wireless technology that telecommunications firms and cell-tower builders want to place on streetlights and utility poles throughout neighborhoods nationwide. The small cells come with a host of equipment, including antennas, power supplies, electric meters, switches, cabling and boxes often strapped to the sides of poles. Some may have refrigerator-sized containers on the ground. And they will be placed about every 500 or so feet along residential streets and throughout business districts.
Telecom companies say the cells will be both unobtrusive and safe, and insist the technology is needed to bring faster internet speeds required by a more connected world.
Telecommunications companies say the current 4G network is becoming overloaded as more people stream more videos and use more data-heavy apps. The advent of driverless cars, smart homes, telemedicine and virtual-reality will create more demand on wireless networks, requiring more bandwidth and faster speeds.
What’s needed, the wireless industry says, is 5G. The next generation network, still in development, is a combination of advanced hardware and standards such as distributed antenna systems, more fiber-optic cable, new data management practices and higher frequencies that will enable the network to carry more data up to 100 times faster than 4G.
5G will depend on so-called millimeter waves. These high-frequency bands, however, don’t travel as far as the signals 4G relies on and are easily blocked by walls, trees and even rain. So the network needs to be dense, with cells placed much closer together. That means way more wireless facilities. More than 300,000 cells are now in operation nationwide, and estimates for the number of small cells needed to make 5G work range from hundreds of thousands to millions more.
The rollout of 5G will be evolutionary, with the standards for the full complement of advanced technologies expected after 2020. Small cells already are being erected with 5G tests in many cities, and as that’s happened, citizens have descended on government meetings to express their anger — from Woodbury, New York; to Liberty Township, Ohio; to Charlotte; to Pasco County, Florida; to Olympia, Washington.
5G promises to generate huge profits for the wireless companies, with as much as $250 billion in service revenue expected annually by 2025. And 5G will unleash an economic boom, say supporters of pre-empting local rules. They frequently cite a report by the consulting firm Accenture, which concluded that wireless firms will invest $275 billion over the next seven years deploying small cells, creating 3 million jobs and eventually boosting the national economy by $500 billion annually.
The study appears everywhere — mentioned by FCC commissioners in speeches, cited in an official FCC docket, in wireless carriers’ comments, and in statements by the powerful Washington associations that represent them. What most don’t mention is that the study was paid for by the wireless association CTIA, one of Washington’s top lobbying spenders.
The wireless industry argues that localities’ high fees, design requirements and delays in processing permits have effectively prohibited the deployment of broadband, which they argue is a violation of federal law; they’ve asked the FCC to make that clear in reining in cities and counties.
Wireless carriers and the companies that build towers for them have begun flooding city and county permitting offices with applications for attaching small cells to poles and building new ones. Cities that normally see a few dozen such applications yearly began in 2016 to get hundreds, such as Houston. Montgomery County said it had at one point more applications filed in four months than in the previous 18 years.
Wireless companies complain local governments can’t process the permits fast enough because their systems are set up to review applications for massive cell towers, not the small cells they claim are less intrusive. The process needs to move quickly, they say, because 5G requires so many more cells, and they want to beat other countries to set standards.
The FCC issued a notice in April that it would consider rules to streamline cell deployment by reducing the time cities’ and counties’ have to review applications. The agency also said it would study, with the possibility of proposing rules later, both how the FCC could limit cities’ requirements on the look and design of small cells, and if local fees to attach to poles are excessive. The FCC also asked for ways it could amend its own rules. The agency may consider the proposals by the summer.
Pai, a former attorney for Verizon, also created last year a committee of representatives mostly from the wireless industry to develop model codes that cities and counties can adopt to speed the permitting of small cells and to reduce costs to telecoms. The committee is considering proposals, which it plans to formally submit to the FCC later this spring, that run the gamut, from simply calling on cities and the wireless industry to work together to controversial recommendations such as capping what cities charge to attach to public property.
Mayor Sam Liccardo of San Jose, California, one of the few members on the committee representing local interests and who has been critical of wireless companies’ efforts to weaken local rules, resigned from the group in January, saying the wireless industry “has sought to create a set of rules that will provide it with easy access to publicly-funded infrastructure at taxpayer-subsidized rates, without any obligation to provide broadband access to underserved residents.”
In response, Pai said in a statement that the committee has “brought together 101 participants from a range of perspectives” and he looks forward to working with the committee and others “to remove regulatory barriers to broadband deployment and to extend digital opportunity to all Americans.”
Bipartisan agreement
Congress is also weighing in — in rare bipartisan fashion — on the side of the telecom firms. Numerous bills in both the Senate and House would ease regulations and fees for erecting cells on federal lands, such as a bill the Senate passed last summer that would exempt certain small-cell deployments from environmental and historic reviews. The bill, which the House has yet to consider, is sponsored by South Dakota Sen. John Thune, the Republican chairman of the Commerce, Science and Transportation committee, and Sen. Bill Nelson, D-Fla., the ranking member of the committee.
Also last year, Thune joined Democratic Sen. Brian Schatz from Hawaii to circulate a draft bill that rolls back local government control over wireless facilities including small cells, including shortening the permit review times to 60 days on applications to collocate wireless facilities and 90 days for other wireless applications — the same time frames wireless providers are asking the FCC to consider.
Sens. Roger Wicker, R-Miss., and Catherine Cortez Masto, D-Nev., introduced a bill that would exempt small cells being deployed in a public right of way from environmental and historical reviews under certain circumstances. A companion bill is in the House. Numerous other bills are moving through the House
Wicker and Thune are among the top 25 senators who have received the most campaign contributions from AT&T and Verizon since 2010, pulling in $32,500 and $30,500, respectively, according to the Center for Responsive Politics. Schatz has received $29,000 from the two carriers, the third most among senators since 2014, when he ran his first campaign.
With such bipartisan support in Congress, and with an FCC that is sympathetic to telecoms, cities view their control over small cells as slipping away. That leaves people like King resigned to what is coming.
“A Russian woman stood up to speak at one of these public meetings, and she said that when she lived in Russia, the government slam dunked her and she had no say,” King said. “Now she lives in the United States of America, where she’s getting slam dunked by the government and she has no say. That gives you a window into what’s going on here.”
Seems the FBI Loves Best Buy’s Geek Squad, Hello Strzok?
Now many of the emails I receive about certain FBI cases make sense.
*** The document referring to the FBI tour of the Geek Squad facility in Kentucky.
After the prosecution of a California doctor revealed the FBI’s ties to a Best Buy Geek Squad computer repair facility in Kentucky, new documents released to EFF show that the relationship goes back years. The records also confirm that the FBI has paid Geek Squad employees as informants.
EFF filed a Freedom of Information Act (FOIA) lawsuit last year to learn more about how the FBI uses Geek Squad employees to flag illegal material when people pay Best Buy to repair their computers. The relationship potentially circumvents computer owners’ Fourth Amendment rights.
The documents released to EFF show that Best Buy officials have enjoyed a particularly close relationship with the agency for at least 10 years. For example, an FBI memo from September 2008 details how Best Buy hosted a meeting of the agency’s “Cyber Working Group” at the company’s Kentucky repair facility.
The memo and a related email show that Geek Squad employees also gave FBI officials a tour of the facility before their meeting and makes clear that the law enforcement agency’s Louisville Division “has maintained close liaison with the Geek Squad’s management in an effort to glean case initiations and to support the division’s Computer Intrusion and Cyber Crime programs.”
Another document records a $500 payment from the FBI to a confidential Geek Squad informant. This appears to be one of the same payments at issue in the prosecution of Mark Rettenmaier, the California doctor who was charged with possession of child pornography after Best Buy sent his computer to the Kentucky Geek Squad repair facility.
Other documents show that over the years of working with Geek Squad employees, FBI agents developed a process for investigating and prosecuting people who sent their devices to the Geek Squad for repairs. The documents detail a series of FBI investigations in which a Geek Squad employee would call the FBI’s Louisville field office after finding what they believed was child pornography.
The FBI agent would show up, review the images or video and determine whether they believe they are illegal content. After that, they would seize the hard drive or computer and send it to another FBI field office near where the owner of the device lived. Agents at that local FBI office would then investigate further, and in some cases try to obtain a warrant to search the device.
Some of these reports indicate that the FBI treated Geek Squad employees as informants, identifying them as “CHS,” which is shorthand for confidential human sources. In other cases, the FBI identifies the initial calls as coming from Best Buy employees, raising questions as to whether certain employees had different relationships with the FBI.
In the case of the investigation into Rettenmaier’s computers, the documents released to EFF do not appear to have been made public in that prosecution. These raise additional questions about the level of cooperation between the company and law enforcement.
For example, documents reflect that Geek Squad employees only alert the FBI when they happen to find illegal materials during a manual search of images on a device and that the FBI does not direct those employees to actively find illegal content.
But some evidence in the case appears to show Geek Squad employees did make an affirmative effort to identify illegal material. For example, the image found on Rettenmaier’s hard drive was in an unallocated space, which typically requires forensic software to find. Other evidence showed that Geek Squad employees were financially rewarded for finding child pornography. Such a bounty would likely encourage Geek Squad employees to actively sweep for suspicious content.
Although these documents provide new details about the FBI’s connection to Geek Squad and its Kentucky repair facility, the FBI has withheld a number of other documents in response to our FOIA suit. Worse, the FBI has refused to confirm or deny to EFF whether it has similar relationships with other computer repair facilities or businesses, despite our FOIA specifically requesting those records. The FBI has also failed to produce documents that would show whether the agency has any internal procedures or training materials that govern when agents seek to cultivate informants at computer repair facilities.
We plan to challenge the FBI’s stonewalling in court later this spring. In the meantime, you can read the documents produced so far here and here.