Chinese National Arrested for Smuggling US Microchips

US federal agents arrested a Chinese citizen attempting to obtain hundreds of radiation-hardened microchips typically used in satellites and ballistic missile systems as he tried to leave the United States last year, according to court documents obtained by Quartz.

The bust, which had not been reported in the media until now, was the culmination of an elaborate international sting that stretched from China to Arizona, and included an undercover operation in Bangkok.

The made-to-order chip is manufactured and sold in the United States by Cobham, a multinational defense contractor headquartered in Britain. They cost $2,500 each, and the company only makes about 1,000 of them a year. They are made to withstand extreme temperatures, severe vibrations, and radiation exposure. Known as “rad-hard chips,” they require a license from the Department of Commerce to export, and sending the chips to China—as well as a small handful of other countries, including Russia—is banned outright. A commercial version of the same chip, with the same memory capacity but without the ability to survive in the harsh conditions of outer space, goes for about $60.

A 2011 attempt by the Chinese to obtain an earlier version of the same chip was also foiled by the Department of Homeland Security. But more than 100 of the 312 chips purchased by the suspect in that case remain missing.

In this latest case, authorities say Jian Fun Tso, who goes by Steven, emailed Cobham in January 2018 to ask about purchasing the microchips for a group of unidentified customers. He said the buyers intended to use the chips in a radar-assisted parking device for cars. Tso called the sales potential “huge.” According to prosecutors, Tso’s clients were based in China.

A Cobham representative told Tso that, although his managers would certainly love “huge” numbers, the chips he was inquiring about—aside from being illegal to ship to China—cost far more than anyone creating such a product would ever need to spend.

Nicholas Eftimiades, a veteran intelligence officer who held positions with the CIA, the Bureau of Diplomatic Security, and the Defense Intelligence Agency during his 34-year career, said the technology in radiation-hardened microchips is “very, very closely guarded.” He said Tso’s explanation of how his clients would use them was nothing short of “ridiculous.”

“That chip could only be used by a certain number of state institutions in China, all leading to the People’s Liberation Army,” Eftimiades told Quartz. “They’re trying to steal it in a covert manner, the likelihood is a military space program or missile program.” Court documents quote a Cobham official saying there was “absolutely no rational reason” for anyone to use the chip in an automotive application.

China, which maintains the most extensive intelligence apparatus in the world, has increased the size and scope of its efforts in recent years. Beijing’s attempts to acquire sensitive American technology target not just the US government and the defense industry, but major universities and research scientists as well.

Chinese hackers have already compromised dozens of critical US weapons systems. In 2018, Chinese hackers stole top-secret plans for a supersonic anti-ship missile the Navy was developing. Last fall, two Chinese diplomats living in the United States—one of whom authorities believe was in fact an undercover intelligence officer—were expelled from the country after attempting to get onto a secure Virginia military base. Authorities recently charged a Chinese-born tour guide in San Francisco with passing US secrets to China’s Ministry of State Security. And last month, two different Chinese nationals were caught surveilling the same Florida military base twice in two weeks.

“The Chinese have been eating our lunch since the eighties,” former CIA officer Robert Baer told Quartz. “Nearly every single scientific and technological breakthrough they’ve made is thanks to what they’ve ripped off from us. And it’s only getting worse. Chinese theft of our technology is up there with our worst national security threats.”

Tso tries again

According to court filings, Cobham—which in 2018 alone received eight requests from Chinese entities for the valuable microchips—reported Tso’s call to US counterintelligence.

Unable to get the chips from Cobham, Tso tried a US electronics distributor that acts as a reseller. This time, Tso left out the part about China being the chips’ ultimate destination.

The distributor emailed Tso a blank end user agreement to fill out. Tso returned it, listing the end user as an electrical engineer named “John Anderson” from Metech ICT, an automotive electronics company based in Liverpool, England. Like Cobham, the distributor found his request suspicious and referred him to an undercover agent with the Defense Criminal Investigative Service (DCIS).

Tso soon made contact with the undercover agent, who was stationed in Phoenix, Arizona. He sent the agent, who claimed to work for the distribution company, a purchase order for the chips. DCIS checked the information Tso provided for Metech ICT against the UK corporate registration database. No one named John Anderson worked there. The address Tso provided was for a restaurant he ran in Liverpool.

The undercover agent agreed to sell 200 chips to Tso, who said he planned to pick them up in the United States and personally take them back to the UK. Tso said he would wire the undercover agent 50% of the payment up front, and the remainder upon delivery, transferring his own money from Hong Kong to the UK and then on to the United States, claiming the nonexistent John Anderson would reimburse him later.

***

In what Eftimiades describes as a “whole of society approach,” the Chinese security services deploy overseas agents who range from trained intelligence officers to rank amateurs who engage in comically bad spycraft. Non-professional “freelance” operatives like Tso tend to do it for the money, and often become involved through personal networks.

It’s all part of a worldwide program to steal information that will increase Chinese power economically and politically, former CIA officer Joseph Wippl told Quartz. “It is not limited to the United States, although we are the priority No. 1 target,” he said.

To Bangkok and back

In November 2018, some 10 months after Tso’s original email to Cobham, the undercover agent met him at the Bangkok Intercontinental Hotel to finalize the deal.

Tso, who brought his wife to the rendezvous, asked the agent to provide him with a set of false invoices reflecting a total price of $10,000 for the $550,000 worth of chips, saying it would help him avoid any potential problems with customs if he were stopped.

That’s when Tso admitted the chips were ultimately destined for China. Tso also confided to the undercover agent that the money he sent from the UK had in fact originated in Hong Kong and China, and that Metech ICT was a front company he had set up.

As long as they were “both protected,” the agent told Tso this was fine. Tso called a female contact he referred to as “Big Sister,” who told the undercover agent she planned to meet Tso in the UK and hand-carry the chips from there to Hong Kong. “Other individuals” would transport the chips from Hong Kong to China, Big Sister said.

The following month, Tso wired a payment of $275,000 to the undercover agent’s bank account, which was $10,000 more than the actual balance due. Tso, who had given his customers a purposely inflated price, was planning to keep the extra money for himself and asked to be reimbursed when he arrived in Phoenix to pick up the chips.

***

On January 14, 2019, Tso flew from Liverpool to Philadelphia, where he boarded a connection to Phoenix. A day later, he met with the undercover agent, who gave Tso $10,000 in cash and a box he said contained the 200 radiation-hardened chips they had discussed. The agent reminded Tso that it would be illegal to bring the chips from the UK to China, to which Tso responded that he “hoped” the chips would stay in the UK but that “the less he knew about the ultimate end user, the better.”

The next day the undercover agent drove Tso to Phoenix’ Sky Harbor airport. He was intercepted by US Customs and Border Protection as he attempted to board his flight.

Tso pleaded guilty to conspiracy charges a year later, just before his trial was set to begin. He is scheduled to be sentenced April 13, and faces up to 20 years in prison and a $1 million fine.

Tso’s lawyer, Seth Apfel, declined to comment, as did the federal prosecutors handling the proceedings.

John Sipher, who spent 28 years in the CIA’s National Clandestine Service before retiring in 2014, told Quartz that the Tso case “mirrors dozens of other cases and is likely the tip of the iceberg.”

This time, Tso’s unlikely story for how the chips would be used gave away his intentions before it was too late, said Eftimiades. “When someone’s putting $200,000 out, not asking for financing, and they don’t know the [real] use of the chip, it becomes apparent very quickly that this is a lie.”

75th Anniversary of the Holocaust Liberation

1.1 million were herded like sheep through the gates of death. Survivors are few today and their stories are fading from history. Take some time to remember and then share some facts as noted below. #NeverAgain

Most people are familiar with the names of the major concentration campsAuschwitz, Buchenwald, Dachau, and Treblinka, for example – but few realize that these were not the only places where Jews and other prisoners were held by the Nazis. Each of the 23 main camps had subcamps, nearly 900 of them in total. These included camps with euphemistic names, such as “care facilities for foreign children,” where pregnant prisoners were sent for forced abortions.

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The Nazis established about 110 camps starting in 1933 to imprison political opponents and other undesirables. The number expanded as the Third Reich expanded and the Germans began occupying parts of Europe. When the U.S. Holocaust Memorial Museum first began to document all of the camps, the belief was that the list would total approximately 7,000. However, researchers found that the Nazis actually established about 42,500 camps and ghettoes between 1933 and 1945. This figure includes 30,000 slave labor camps; 1,150 Jewish ghettoes, 980 concentration camps; 1,000 POW camps; 500 brothels filled with sex slaves; and thousands of other camps used for euthanizing the elderly and infirm; Germanizing prisoners or transporting victims to killing centers. Berlin alone had nearly 3,000 camps.

These camps were used for a range of purposes including: forced-labor camps, transit camps which served as temporary way stations, and extermination camps, built primarily or exclusively for mass murder. From its rise to power in 1933, the Nazi regime built a series of detention facilities to imprison and eliminate so-called “enemies of the state.” Most prisoners in the early concentration camps were German Communists, Socialists, Social Democrats, Roma (Gypsies), Jehovah‘s Witnesseshomosexuals, and persons accused of “asocial” or socially deviant behavior. These facilities were called “concentration camps” because those imprisoned there were physically “concentrated” in one location.

Millions of people were imprisoned, abused and systematically murdered in the various types of Nazi camps. Under SS management, the Germans and their collaborators murdered more than three million Jews in the killing centers alone. Only a small fraction of those imprisoned in Nazi camps survived. As many as 15-20 million people may have died in the various camps and ghettoes. (source)

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In the final days of the camp, the commanding SS officers “evacuated” 56,000 prisoners, most of them Jews. Leaving Auschwitz, however, did not mean the end of their ordeal. Instead, the SS ordered their charges into columns and marched them into the miserable winter. At first, the prisoners went on foot, monitored by officers who shot those who fell behind or tried to stay behind. Malnourished and inadequately clothed, the marchers were subject to random massacre. Eventually, they were shipped back toward Germany in open train cars. Up to 15,000 of the former camp inhabitants died on the death march.

“[The Nazis] wanted to continue to use those tens of thousands of prisoners for forced labor,” says Steven Luckert, senior program curator at the Levine Family Institute for Holocaust Education at the United States Holocaust Memorial Museum and former chief curator of the museum’s permanent collection. “Those prisoners got dispersed over all of the remaining camps.”

Back at Auschwitz, where by some estimates 9,000 prisoners remained, only a few SS guards maintained their watch. Most of the prisoners were too sick to move. “There was no food, no water, no medical care,” says Luckert. “The staff had all gone. [The prisoners] were just left behind to die.”

Among the last acts of the SS were to set fire to huge piles of camp documents, a last-ditch effort to hide the evidence. “They understood the enormity of the crimes they committed,” Luckert says.

Concentration and Extermination Camps and Major "Euthanasia" Centers

Between 1933 and 1945, the Nazi regime set up about 20,000 camps to imprison, exploit, and annihilate its declared enemies. This map shows major camps, grouped according to function. The term “concentration camp” applies to those camps built from 1933 on for the purpose of imprisoning political and ideological opponents of the regime and “racial enemies” under the pretense of “protective” or “preventative” custody. In the first years of the Nazi dictatorship, most of those imprisoned in the camps were Communists and Socialists, Social Democrats, Roma and Sinti, Jehovah’s Witnesses, homosexuals, and individuals deemed “asocial.” After the Kristallnacht pogrom of November 9, 1938, Jews in the German Reich were imprisoned en masse for the first time.

After the beginning of the Second World War, the camp system was quickly expanded and supplemented with POW camps and work camps in the occupied territories. Additionally, the camps began to function more and more as execution sites for members of particular groups, for example, Soviet POWs, members of the resistance, and partisans. To this end, gas chambers were built in the camps Auschwitz, Majdanek, Sachsenhausen, and Mauthausen starting in 1941. To implement the National Socialists’ plan for the “final solution of the Jewish question,” extermination camps were built in occupied Poland. The sole purpose of these camps was to carry out the mass murder of the European Jews in an efficient manner. The first of these camps, which were supposed to remain secret, was opened in December 1941 in Chelmno. In 1942, the camps Belzec, Sobibor, and Treblinka were built, and Auschwitz was equipped with a neighboring extermination camp, Auschwitz II-Birkenau. Jews from all over Europe were deported there via transit camps and were usually murdered within 24 hours after arrival.

The map also shows the places where the National Socialists carried out their secret “Euthanasia Program.” Starting in the fall of 1939, various institutions euthanized individuals who were deemed “unworthy to live” on account of either actual or alleged hereditary illnesses. After the revelation of the “Euthanasia Program” met with public protest, gas-administered euthanasia was halted in August 1941. It was replaced by lethal injections in “euthanasia clinics,” which continued until the end of the war. (source)

Context of US Aid to Ukraine, Schiff’s Team is Teeming with Deception

Ever heard of an organization called U.S. Ukraine Foundation? The organization has Directors and and Advisory Board that lobbies Congress and does a good job at that apparently. The organization calls itself a ‘do-tank’ with headquarters in Washington DC., that works for fostering a legitimate human rights, democratic government that enhances Ukraine’s stability and place in the community of nations.
After Russia invaded Ukraine five years ago, reliance of monetary and military aid to Ukraine has been critical to fight back against Russian aggression on several fronts. Since 1992, the United States has given Ukraine more than $7.2 billion from many domestic agencies that include: the Department of Defense, USAID, Energy, Agriculture, Justice and Commerce. Smaller U.S. agencies have also been quite involved in Ukraine including Peace Corps. All these resources are to ‘bolster civil society supporting the reform process where anti-corruption is a priority.
USAID, which operates under the U.S. State Department manages all assistance programs for Ukraine shoring up vulnerabilities of the country. Ukraine obviously does need help but control and oversight of U.S. assistance is tantamount. Seems since the Obama administration, it had none.

There actually is a USAID audit report for Ukraine found here.

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Impeachment is hardly deserved and below proves that fact. Gotta wonder what the real posture of Col. Vindman actually was. Further, did anyone in Congress go back and read congressional records as they related to Ukraine or tap the State Department, Ukraine desk for a summary of diplomatic efforts including corruption and what our own Justice Department or FBI did and is doing still for the benefit of Ukraine? Ah perhaps Lev Parnas is part of that eh?
Published on the website for this organization is the following in part:

The Ukrainian American community and other friends of Ukraine have long advocated for U.S. government aid and for a few years in the mid-1990s, under the Clinton administration, Ukraine was one of our largest recipients of bilateral aid. Some readers may recall that the current Senate majority leader, Mitch McConnell, championed Ukraine assistance in his capacity as chairman of the relevant appropriations subcommittee, and was sometimes referred to as “Mr. Ukraine” at the time. He enjoyed bipartisan support back then, and, thankfully, assistance to Ukraine continues to enjoy strong bipartisan support to this day, despite the difficult budget climate.

U.S. assistance, which increased substantially following Russia’s invasion, was backed by the Obama administration and funded by Congress. With the proposed severe cuts in foreign assistance called for by the Trump administration, there were fears that Ukraine aid, too, would be affected. Based on my sources, it looks as if assistance to Ukraine for Fiscal Year 2018 will most likely be maintained at levels similar to the last two fiscal years – underscoring the importance that the United States attaches to Ukraine. And while there is always room for improvement in how it is implemented, U.S. assistance has been substantial and vital to Ukraine – a good use of taxpayer money. Friends of Ukraine, including the Ukrainian American community, need to make sure that this practical, consequential support for Ukraine remains a priority for the United States.

The importance of those two paragraphs is the fact that President Trump questioned foreign aid to Ukraine long before the phone call with the newly elected Ukraine president Zelensky, in fact going back to the summer of 2018. When President Trump inquired what other countries were doing on behalf of Ukraine was and is the right question then and now. It is no wonder aid was held given facts, context, conditions and future plans and estimates for the country.

Focusing on Pending Ukraine-Related Action on Capitol Hill August 2018: Members of the Friends of Ukraine Network (FOUN), the Ukrainian-American community, the U.S.-Ukraine Foundation and other supporters of Ukraine met on August 7th to discuss pending and future legislative action on Capitol Hill regarding Ukraine.

The lobbying on The Hill went into overdrive and members of Congress visited by members of the organization clearly know/knew of all conditions in Ukraine and how sending U.S. taxpayers dollars to the struggling country should be circumspect because of human-trafficking, financial corruption, military hostilities and Ukraine military doctrine effectiveness along with split loyalties within the Ukraine government, security challenges and reforms across the board.

Iran Refuses to Release Black Box of Downed Ukraine Plane

(Reuters) – Ukraine will press Iran to hand over the black boxes from the crash of a Ukrainian passenger plane at a meeting with a visiting Iranian delegation on Monday, Foreign Minister Vadym Prystaiko told reporters.

Ukraine would convey the message to visiting Minister of Roads and Urban Development Mohammad Eslami, that returning the black boxes would show that Iran wanted an unbiased investigation of the crash, Prystaiko said.

“His main task is to apologize and acknowledge what happened. We hope that we can go a little further than just political discussions and discuss practical problems. Among them in particular is the return of the black boxes,” Prystaiko said.

Iran has appeared to reverse course after its earlier decision to send abroad the black box flight recorders from the Ukrainian jetliner shot down earlier this month, saying Tehran would first review the audiotapes.

Hassan Rezaeifar, who is leading the investigation into the tragedy, was cited by the state-run IRNA news agency on Sunday as saying: “The flight recorders from the Ukrainian Boeing are in Iranian hands and we have no plans to send them out.”

“We are trying to read the black boxes here in Iran. Otherwise, our options are Ukraine and France, but no decision has been taken so far to send them to another country,” he added.

A day earlier, another Iranian news agency, semi-official Tasnim, cited Rezaeifar as saying that it was not possible to interpret the recordings in Iran, and that the black boxes would be sent to Kyiv, where French, American and Canadian experts would help analyze them.

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***Gotta wonder if the Iranians protesting against the regime know this.

A slew of influential Iranian artists, television personalities and sports stars have publicly broken with Tehran after the government denied for days that it shot down a Ukrainian passenger plane this month.

“Apologies for lying to you for 13 years,” Gelareh Jabbari, a host on the state-run Islamic Republic of Iran Broadcasting TV network, wrote last Monday in an Instagram post. The post has since been deleted, but it was seen by

“It was very hard for me to believe our people have been killed, forgive me for believing this late,” Jabbari, the anchor of the lifestyle show “Good Morning Iran,” added in an apparent reference to the 82 Iranians who were among the 176 passengers and crew members killed.

Iran initially denied that a missile had struck the plane on Jan. 8 shortly after it took off from Tehran, the capital, only to reverse course and admit that it had shot the plane down by mistake.

Many students and middle-class Iranians took to the streets in protest. In Tehran, some students refused to trample on paintings of U.S. and Israeli flags in an apparent rejection of the government’s attempts to deflect blame.

Those in more influential positions used their sway to send a message.

The government’s handling of the incident has served only to “confirm an existing sense of moral bankruptcy that the Islamic Republic is accused of,” said Afshin Shahi, an associate professor of Middle East politics at Bradford University in England.

“The Islamic Republic is facing the worst legitimacy crisis in its 40-year history, and the pressures are mounting from every angle,” he said, adding that state repression, censorship and the country’s economic woes in the last three years had created a profound sense of disillusionment. “The gap between the state and society has widened to an extreme extent.”

In a sign of how seriously Iranian authorities are taking the backlash, the country’s supreme leader, Ayatollah Ali Khamenei, delivered a sermon at last week’s Friday prayers praising recent strikes on Iraqi bases hosting U.S. forces.

Iran is Leading Protests in Iraq

In part: Iran’s supreme leader, Ayatollah Ali Khamenei, led Friday prayers in Tehran for the first time in eight years and delivered a sermon in which he excoriated U.S. leaders as “clowns” and accused European countries of negotiating in bad faith over the foundering nuclear deal.

Khamenei also indicated that Iran might retaliate further for the U.S. drone strike that killed top Iranian commander Maj. Gen. Qassem Soleimani, saying a missile attack on U.S. assets in Iraq had been a blow to America’s dignity and its status as a superpower.

The address comes at a delicate time for the ayatollah. Iran’s leaders are locked in a contentious dispute with the U.S., and they’re facing public criticism at home after admitting that Iran accidentally shot down a Ukrainian passenger jet, killing 176 people, most of whom were Iranian.

Taking aim at recent statements by President Trump and Secretary of State Mike Pompeo in which they pledged their support for Iran’s regular citizens, Khamenei said, “These American clowns lie in utter viciousness that they stand with the Iranian people.”

Khamenei added, “They lie. If you are standing by the Iranian [people], it is only to stab them in the heart with your venomous daggers.”

Despite the ayatollah’s colorful language, as NPR’s Jane Arraf reports, his overall speech was “perhaps a little bit less fiery than many would have expected.” While the Iranian leader did criticize the U.S. and its allies, she says, “he did not make specific threats.”

In his sermon, the ayatollah also addressed a recent maneuver that could lead to the reinstatement of U.N. sanctions on Iran: the complaint filed Tuesday by foreign ministers of the U.K., France and Germany. Their formal accusation that Iran violated its commitments under the 2015 nuclear deal, known as the Joint Comprehensive Plan of Action, triggers a dispute resolution process — and if that fails, U.N. sanctions on Iran, including an arms embargo, will likely return.

“The threat of the French and German governments and the vicious British government to send Iran’s case to the Security Council proved once again that they are the footmen of the U.S.,” Khamenei said.

So, what is planned and what should our forces and civilian government employees be prepared for?

*** ISW: Iran is preparing to increase political pressure against the U.S. presence in Iraq by generating significant anti-American protests on Friday, January 24 with support from nationalist Shi’a cleric Moqtada al-Sadr. Iran seeks to integrate Sadr into a new “resistance front” that aligns Iranian proxy groups with Sadr’s popular influence to expel U.S. forces. Sadr has thus far supported this effort but retains freedom of action and will continue to support popular protests against the Iraqi state, which Iran views as a severe threat.

 

Sadr’s new resistance front (as he enhances relations with Tehran) includes a million man march against US forces in Iraq. Further, he condemned the Iraqi Parliament resolution as a weak response calling for the cancellation of the security agreement with the United States. Last Sadr held meetings with the PMF/Hashd al Shaabi and with Kataib Hezbollah, Asaib Ahl al Haq, led by terrorist Qais al Khazali and Hezbollah al Naujabas Brigades in Qom where he listed a number of demands of the Baghdad government and calls to action.

Image result for Muqtada al-Sadr Coordination, mobilization and locations are still being determined. It could happen in just Baghdad or throughout the country with Iran Shiite support and funding.