Category Archives: Treasury

Benghazi Cmte: Dem. Staffers Got Bonuses

Posted on by

Bonuses for what, stonewalling and refusals to cooperate or investigate?

Who authorized the bonuses and what staffers? Hello Congressman Cummings, you have a call holding on line 3 and there may be a knock at the door with a subpoena. Did the congressman himself take a bonus for leaking testimony to the press?

Did any of the surviving warriors get a bonus?

Benghazi committee Dems gave thousands in bonuses while blasting probe’s cost

FNC: Democrats on the House committee probing the 2012 Benghazi terror attacks awarded tens of thousands of dollars in bonuses to their staff, while at the same time repeatedly attacking Republicans over the rising cost of the investigation.

According to publicly available reports, a total of $33,600 was given to six Democratic staffers at the end of 2014 and 2015.

While the bonuses make up only a fraction of the panel’s total expenses to date, critics suggested they undermine the minority members’ complaints about the budget.

“This is the height of hypocrisy,” Lisa Boothe, a Republican strategist and president of High Noon Strategies, told FoxNews.com.

Democrats complain the committee’s investigation, established in May 2014, has gone on longer than the 9/11 Commission’s review of the 2001 terror attacks and have accused Republicans of using the committee as a political weapon to attack Democratic 2016 front-runner Hillary Clinton — who was secretary of state at the time of the Benghazi attacks.

And they have been relentless in describing the investigation as a waste of money, even including a “Benghazi Spending Tracker”on their website. The total taxpayer tab is now at nearly $6 million.

“Republicans continue to drag out this political charade closer to the 2016 presidential election, and the American taxpayers continue to pay the price,” ranking member Elijah Cummings, D-Md., said in January.

Boothe suggested there’s a disconnect.

“The Democrats on the committee want to criticize Republicans for investigating the deaths of four Americans to ensure a Benghazi style attack never happens again, but they have no problem doling out bonuses to their government staffers,” she said.

However, Democrats responded to questions about the bonuses by saying they have fewer staff and do more work than their Republican counterparts.

“Republicans are responsible for the decision to drag out this partisan charade for almost two years and for spending nearly $6 million to date. Democrats have about half the staff as the Republicans, spend less than half the budget of the Committee, and do just as much work, if not more,” a Democratic committee spokesman told FoxNews.com.

Last week, committee Republicans accused the Democrats of spending $2 million — more than one-third of the committee’s total cost — on what they called “politically motivated efforts to undermine and obstruct the investigation.”

Committee Republicans declined to comment, other than to confirm they have not given any bonuses.

Interesting that Elijah Cummings never talks about the 600 requests for more security in Benghazi.

In part from WaPo: “The chart was displayed in the hearing when the numbers were discussed, so all of the media and anyone else in the room could see it,” said the GOP staff member. “We also provided it to anyone who asked for a copy. As I’m sure you understand, members are often rushed when asking questions due to the limited time allotted them. Since Pompeo was discussing the numbers on the chart when it was right there for everyone to see, there was clearly no intent to mislead.”

As an example of a “concern,” the GOP staff provided a copy of a previously unpublished memo, embedded below. This memo, dated Aug. 28, 2012, or two weeks before the attacks, was written by the regional security officer in Benghazi as a transition memo for an incoming officer.

China’s Best Method of Industrial Espionage

Posted on by

Obscure Chinese Firm Dives Into $22 Trillion U.S. Market

Bloomberg: When Cromwell Coulson heard that an obscure Chinese real estate firm had agreed to buy the Chicago Stock Exchange, he was shocked.

“My first reaction was, ‘Wow, that’s who they’re selling to?”’ said Coulson, the chief executive officer of OTC Markets Group Inc. in New York. “These new buyers have no connection to Chicago’s existing business. They’re completely disconnected from the current business of supporting the Chicago trading community. So wow, that’s out of left field.”

While the world has gotten used to seeing Chinese companies snap up overseas businesses, the purchase of a 134-year-old U.S. stock market by Chongqing Casin Enterprise Group — a little-known property and investment firm from southwestern China — raises a whole host of questions. For starters, why does a provincial Chinese business with no apparent ties to the securities industry have any interest in buying one of America’s smallest equity exchanges? And will U.S. regulators sign off?

So far, Casin Group’s intentions are unclear, with calls to the company’s Chongqing headquarters going unanswered on Friday. If the deal does pass muster with American regulators, it would mark the first-ever Chinese purchase of a U.S. equity exchange, giving Casin Group a foothold in a $22 trillion market where even the smallest bourses have room to grow if they can provide the best price for a stock at any given moment.

The Chicago Stock Exchange — a subsidiary of CHX Holdings Inc. — is minority-owned by a group including E*Trade Financial Corp., Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co., according to the company. The minority shareholders are also selling their stake, Chicago Stock Exchange Chief Executive Officer John Kerin said in a phone interview.

The deal values the exchange at less than $100 million, according to a person familiar with the matter, who asked to not be identified because the terms weren’t disclosed publicly. Mark O’Connor, a spokesman for the exchange, declined to comment on the size of the transaction.

Overseas Shopping

Casin Group’s offer, announced on Friday in a statement from the Chicago exchange, comes amid an unprecedented overseas shopping spree by Chinese companies. Businesses from Asia’s largest economy have announced $70 billion of cross-border acquisitions and investments this year, on track to break last year’s record of $123 billion, according to data compiled by Bloomberg.

While many of those deals had obvious business rationales, the reasons for Casin Group’s bid are less clear. The company, founded in the 1990s through a privatization of state-owned assets, initially focused on developing real estate projects in Chongqing, before expanding into the environmental and financial industries. While the firm owns stakes in banks and insurers, it has no previous experience owning an exchange.

Chinese Growth

Lu Shengju, the majority owner and chairman of Casin Group, wants to help bring Chinese companies to U.S. markets, according to the statement from Chicago’s bourse.

“We have reviewed CHX’s plans to improve market share through new growth initiatives and fully support them,” Lu, a torch bearer during the Beijing Olympic games in 2008, said in the statement, which didn’t disclose terms of the deal. “Together, we have a unique opportunity to help develop financial markets in China over the longer term and to bring exciting Chinese growth companies to U.S. investors.”

The Chicago Stock Exchange could serve as a venue for Chinese companies to list, said Dale Rosenthal, a clinical assistant professor of finance at the University of Illinois at Chicago.

“Because they’re an exchange, they can list stock,” Rosenthal said. “It has the potential to raise Chicago’s profile in China.”

Casin Group is no stranger to investing in outside businesses, including overseas targets. Three years ago, the firm increased its stake in Shenzhen-listed Guoxing Property to 30 percent, becoming the biggest shareholder. Guoxing, now 60 percent owned by Casin Group, has soared 170 percent in the past two months, versus a 19 percent drop in the CSI 300 Index, data compiled by Bloomberg show. Casin Group bought a 25 percent stake in Singapore-based Great Eastern Life Assurance in 2013.

“It’s interesting to see the Chinese increase their footprint in the U.S.,” said Ramon Camacho, a principal at RSM US LLP, an audit, tax and consulting company based in Chicago. “These investors are looking for a platform to showcase and bring to market Chinese companies.”

The company’s bid for the Chicago bourse could face political opposition, with American regulators and politicians taking a skeptical approach toward foreign investments in industries deemed important to national interests. When Germany’s Deutsche Boerse AG wanted to buy the owner of the New York Stock Exchange in 2011, U.S. Senator Charles Schumer, a Democrat from New York, raised obstacles. The deal was finally scrapped on monopoly concerns.

Heavy Scrutiny

Some Chinese companies have come under heavy scrutiny as they tried to enter U.S. markets. Huawei Technologies Co., China’s largest phone-network equipment maker, was barred by the U.S. in 2011 from participating in building a nationwide emergency network.

The U.S. Securities and Exchange Commission would have to approve the deal, because the exchange is a self-regulatory organization. The new owners will have to show they intend to follow all of the regulations imposed on stock exchanges, whose listing and trading rules also must be approved by the SEC.

Additionally, the takeover would probably be reviewed by the Committee on Foreign Investment in the U.S., said Anne Salladin, a lawyer at Stroock & Stroock & Lavan LLP in Washington. CFIUS, a panel of government officials led by the Treasury Department that examines purchases of American businesses by foreign investors, can recommend the president block transactions it believes compromise national security. It can also impose changes to address any concerns.

“It’s a Chinese investment, and it’s in a potentially sensitive sector: financial infrastructure,” Salladin said.

CFIUS has been closely scrutinizing purchases of American businesses by Chinese buyers. Last month, Royal Philips NV abandoned its plan to sell its lighting-components unit to a Chinese-led investment group following opposition from CFIUS.

“If you have a U.S. stock exchange that’s primarily satisfying Chinese companies, the regulators are gonna look very closely at it,” Coulson said. “If your core business is listing Chinese companies in the U.S., that’s going to pick up a lot of regulatory scrutiny and caution.”

China Industrial Espionage:

This new book is the first full account, inside or outside government, of China’s efforts to acquire foreign technology.

Based on primary sources and meticulously researched, the book lays bare China’s efforts to prosper technologically through others’ achievements. For decades, China has operated an elaborate system to spot foreign technologies, acquire them by all conceivable means, and convert them into weapons and competitive goods—without compensating the owners. The director of the US National Security Agency recently called it “the greatest transfer of wealth in history.”

Written by two of America’s leading government analysts and an expert on Chinese cyber networks, this book describes these transfer processes comprehensively and in detail, providing the breadth and depth missing in other works. Drawing upon previously unexploited Chinese language sources, the authors begin by placing the new research within historical context, before examining the People’s Republic of China’s policy support for economic espionage, clandestine technology transfers, theft through cyberspace and its impact on the future of the US.

This book will be of much interest to students of Chinese politics, Asian security studies, US defence, US foreign policy and IR in general.

***

China’s long history of spying on business

CNN: The United States indicted five members of China’s People’s Liberation Army Monday, accusing them of hacking into American companies and pilfering closely-guarded trade secrets.  The charges — rejected by Beijing as “purely ungrounded and with ulterior purpose” — are a dramatic escalation in a squabble between the two countries over spying. But they will surprise few Americans working in sensitive industries.

While many countries engage in industrial espionage, China has long been among the most aggressive collectors of economic secrets — both online and off, experts say.

“I can tell you they [China] are the most pervasive,” Kevin Mandia, founder of cybersecurity firm Mandiant, told CNN. “The indictment is about taking intellectual property … it’s the theft of trade secrets, it’s economic espionage.” Full article here.

El Chapo’s America: Flooded with Heroin-Fentanyl

Posted on by

The DEA operation, called “Project Cassandra,” is meant to disrupt and dismantle Hezbollah’s global network that supplies drugs to the U.S. and Europe as well as cut into the terror organization’s ability to fund its activities through drug trafficking.

In the investigation, authorities uncovered a network of money couriers who collect and transport millions of euros in drug proceeds from Europe to the Middle East. The currency is then paid in Colombia to drug traffickers using the Hawala disbursement system, which makes it difficult to track. ***

Last spring, Brazil’s Civil Police arrested Hamzi Ahmad Barakat in the city of Curitiba under allegations that he had connections to a network of front companies that fleeced Lebanese immigrants who had recently moved to Brazil.

Barakat, who allegedly has ties to the infamous Triple Frontier region, is listed in the United States as a member of Hezbollah and is suspected of trafficking arms, drugs, explosives and counterfeit bills.

“He was preying on his own countrymen, using their identities to create companies to carry out schemes,” said Cassiano Aufiero, the police investigator in charge of the case.

Aufiero added that while he knew of Barakat’s purported ties to the Islamic militant group, he said that he was under arrest for different matters, including embezzlement and the creation of false documents.

Barakat’s arrest shed more light on the Triple Border region, which has become a hotspot for smugglers and drawn the attention of the U.S., Israel and governments throughout South America.

The region has drawn a number of immigrants for the Middle East, particularly from Lebanon, and is believed to be one of Hezbollah’s major areas of operation outside of the Islamic world, due to its seclusion, loose borders, rampant political corruption and weak judicial system. Brazil has one of the largest Lebanese population’s outside of Lebanon with at least 7 million people from that country residing there and some estimates claiming closer to 13 million.

In 2004, Barakat’s brother, Assad Ahmad Barakat, was named by the Treasury Department as one of Hezbollah’s “most prominent and influential members” and was believed to have used an electronics wholesale store in the Triple Frontier as a cover for raising funds for Hezbollah. The Brazilian police arrested him in 2002 and deported him to Paraguay, where he went to prison for tax evasion.

The Department of Justice National Drug Threat Assessment report.

Fentanyl: drug 50 times more potent than heroin ravages New Hampshire

Of 69 fatal overdose victims last year, 68% had taken the synthetic opioid, which Mexican cartels have learned to make and smuggle to interstate highways. The drug ‘is what is killing our citizens,’ says Manchester’s police chief

Guardian: to the Drug Enforcement Administration, fentanyl is a synthetic opioid 100 times more powerful than morphine, and 30-50 times more powerful than heroin.

“Fentanyl is what is killing our citizens,” said Manchester’s chief of police, Nick Willard, in testimony before Congress last week.

In 2013, the city of Manchester had 14 fatal overdoses, one of which (7%) involved a victim with fentanyl in their system, according to Willard. In 2015, 69 people fatally overdosed, 68% of whom had taken fentanyl. The state statistics are no more cheery. Officials at the office of the chief medical examiner in New Hampshire say they have yet to receive testing results from 36 suspected overdoses, but they’ve counted 399 fatal overdose victims so far, more than two-thirds of whom died with fentanyl in their system.

“It’s not like Mario Batali,” said Willard from his office in Manchester, comparing heroin dealers cutting their supply with the famed chef. “These guys are just throwing it in a mixer. You could get a bag that’s perfect and no one is going to die from it. You could also get a bag [that’s] straight fentanyl and that would kill you.”

Willard said that during a recent raid in Manchester, he found a dealer mixing fentanyl with whey protein. In another sting that led to a seizure in Lawrence, Massachusetts, the dealer was allegedly mixing heroin and fentanyl in a kitchen blender.

For the most part, said Willard, the story of opiate use in Manchester follows the same patterns as the rest of the country. The crisis was ushered in by the rise of prescription painkillers like OxyContin. Addicts looking for a cheaper high frequently turned to the more dangerous, yet significantly cheaper, heroin.

The turning point, he says, happened sometime after 2010, when Purdue Pharma altered the medication to make it more difficult to tamper with and get high. Suppliers in Mexico were quick to keep up with the burgeoning market, and addicts in Manchester, which sits near Interstate 93, Route 3, Route 81, and Route 9, had no problem tapping into the supply. More here.

Chicago:

“What Al Capone was to beer and whiskey, Guzmán is to narcotics,” Art Bilek, the commission’s executive vice president, said at the time. Except, Bilek added, Guzmán “is clearly more dangerous than Al Capone was at his height.” (Zambada is plenty dangerous, too: Prosecutors say he commanded logistics and security for the cartel, including assassinations. He is suspected in a number of slayings, including the murders of government officials.)

The cartel’s scope is staggering. About half of the estimated $65 billion worth of illegal cocaine, heroin, and other narcotics that Americans buy each year enters the United States via Mexico, according to law enforcement experts (though the drugs often originate in South or Central America). More than half of that is believed to be supplied by Sinaloa. Drug enforcement experts estimate, conservatively, that the cartel’s annual revenues exceed $3 billion: more than those of the Chicago Mercantile Exchange Group.

In Chicago, the cartel has a near monopoly. “I’d say 70 to 80 percent of the narcotics here are controlled by Sinaloa and Chapo Guzmán,” says Jack Riley, director of the DEA’s Chicago office. “Virtually all of our major investigations at some point lead back to other investigations tied to Sinaloa.”

In August 2009, five months after Zambada’s capture, a federal grand jury in Chicago indicted him and 45 others tied to a Sinaloa-led drug ring in the city. Patrick Fitzgerald, the U.S. attorney at the time, called the indictments “the most significant drug importation conspiracies ever charged in Chicago,” claiming that the cartel imported and distributed nearly $6 billion worth of illegal narcotics mostly to the Chicago area between 1990 and 2008.

Terror Ties Vetting Prison Chaplains

Posted on by

Federal Prisons Using Groups With Terror Ties To Vet Islamic Chaplains

DailyCaller: As Fox News and other news organizations have reported, America’s federal prisons are a “breeding ground” for potential Islamic terrorists — and have been so for years. Despite this disturbing trend, the Obama administration has enlisted Islamic organizations with known terror ties to review and endorse chaplains to work in federal prisons.

In response to an inquiry from Republican Iowa Sen. Chuck Grassley, the Federal Bureau of Prisons provided a list of Islamic Chaplaincy Endorsers, which Grassley has since posted online. Included on the list is the Islamic Society of North America (ISNA), which has long-standing ties with the Muslim Brotherhood and was named by the Justice Department as an unindicted co-conspirator in the Holy Land Foundation terror financing case.

In an open letter to the director of the Bureau of Prisons Thomas Kane, Grassley pointed out that “A 2009 federal district court ruling concluded that ample evidence exists showing the Islamic Society of North America’s ties to Hamas, which is designated by the State Department as a terrorist organization.”

Writing about ISNA, Grassley noted: “It appears, therefore, that the BOP is relying on an organization with associations to terrorist organizations and one that the DOJ named as an unindicted co-conspirator in a terrorist financing case to confirm credentials of those attempting to provide religious services to federal inmates. If accurate, this information is deeply troubling.”

And ISNA isn’t even the only organization with radical ties on the list of chaplaincy endorsers. The Islamic Education Center, located in Walnut, Calif., also has ties to terror organizations through its founder, Dr. Ahmad H. Sakr.

In addition to founding the Islamic Education Center, Sakr — originally from Lebanon — was a founding member of both ISNA and the World Council of Mosques, the latter of which has “a long history of providing financial support to terrorist groups,” according to the Anti-Defamation League. Sakr, who passed away just a few months ago, is listed as the contact person on the BOP’s list of chaplaincy endorsers.

“It is imperative that the BOP take every measure possible to ensure the safety of its personnel within federal prisons and take all reasonable measures to ensure that Islamic extremism is stopped at the gates of each prison,” Grassley noted in his letter to Director Kane. “Currently, it is not clear whether the BOP is doing so.”

As a result of the apparent shortcomings, Grassley is asking the Bureau of Prisons to provide further information about “the process by which someone becomes a religious endorsing organization,” in addition to an explanation for why the BOP chose ISNA as a chaplaincy endorser.
Grassley is also seeking the number of currently employed religious contractors from the 2014-15 year with still incomplete background checks.

According to a 2013 article from the Huffington Post, anywhere between 35,000-40,000 inmates convert to Islam every year, presumably with the assistance of the chaplains provided by the prisons. In a 2014 op-ed in The Daily Caller, author Joy Brighton argued that the nation’s prisons have been churning out thousands of radicalized inmates every year. Brighton’s calls were echoed in a Fox News article just last month that cited experts on the subject who called federal prisons a “breeding ground” for potential terrorists.

*** 

In 2003 for the Inspector General:  On March 10, 2003, Senator Charles Schumer wrote a letter to the OIG requesting that we examine the BOP’s process for selecting Muslim chaplains based on concerns that the BOP relies solely on two Islamic groups to endorse its Muslim chaplains, the Islamic Society of North America (ISNA) and the Graduate School of Islamic and Social Sciences (GSISS). Schumer noted that the ISNA and the GSISS allegedly are connected to terrorism and promote Wahhabism, which some consider an exclusionary and extreme form of Islam. In addition to Senator Schumer, Senators Jon Kyl and Dianne Feinstein expressed similar concerns and asked the OIG to examine these issues as they relate to the BOP.

In response to these requests, we reviewed the recruitment, endorsement, selection, and supervision of Muslim chaplains and other Muslim religious services providers who work with BOP inmates. We also examined the roles the ISNA, the GSISS, and other organizations have in the endorsement of chaplain candidates.

During this review, the OIG interviewed the BOP’s ten Muslim chaplains, the BOP detailee to the Federal Bureau of Investigation’s (FBI) National Joint Terrorism Task Force (NJTTF), and officials at BOP Headquarters who are responsible for religious services providers, including the Chief of the Chaplaincy Services Branch and the Senior Deputy Assistant Director (SDAD) of the Correctional Programs Division. We also interviewed FBI counterterrorism officials and representatives of the U.S. Commission on International Religious Freedom at the U.S. Department of State (Commission). Full report here.

From GatesStone: The number of Muslim prisoners in Britain has doubled in the last decade to nearly 12,000. Many of these prisoners, the media reports, are at “significant risk” of radicalization. The solution, authorities claim, lies with the Islamic prison chaplains. Or are they, in fact, part of the problem? Where do these chaplains come from? What sort of Islam are they espousing?

On May 12, the BBC broadcast its own investigation into the radicalization of prison inmates. The documentary featured interviews with former inmates such as Michael Coe, who “went into prison as a gangster and left as Mikaeel Ibrahim, a convert to Islam.” Coe attributes his conversion to his friendship in jail with al-Qaeda terrorist Dhiren Barot, jailed for life by a British court in 2004 for plotting to blow up limousines by packing them with gas canisters. Full article here.

For more facts on the matter: Why Extremist Chaplains Have Access to U.S. Prisons

 

Immigration: Senator Sessions Just Released Shocking Report

Posted on by

The Senate Judiciary Committee’s subcommittee on Immigration and the National Interest released a new chart on Thursday exclusively to Breitbart News that shows that the number of fugitive criminal aliens in America outnumbers the populations of every city in New Hampshire.

Fugitive Criminal Aliens Outnumber Populations Of All New Hampshire Cities

The release accompanying the chart shows:

Breitbart: According to data provided to the Subcommittee by U.S. Immigration and Customs Enforcement (ICE), there are at least 179,027 aliens in the United States who not only have been ordered to leave the country for violating our immigration laws, but who have also been convicted of a criminal offense, and have not left as required or been removed by ICE. Because of the Obama Administration’s lax enforcement policies, ICE removed only 63,539 of these criminal aliens from the interior of the United States in Fiscal Year 2015. At that rate, it would take nearly three years to remove just the existing criminal aliens who have been ordered removed from the United States (not future criminal aliens who will be ordered removed). While the ICE data includes only criminal aliens who have already been ordered removed, Jessica Vaughan, Director of Policy Studies for the Center for Immigration Studies, estimates there are more than 2 million total criminal aliens in the United States.

The chart shows that the at-least-179,027 fugitive criminal aliens in the United States outnumber the populations of every single New Hampshire city. Manchester, New Hampshire, the most populous city, has 110,000 people — about 70,000 less people than fugitive criminal aliens in America — while Nashua has 87,000 people. Concord, New Hamsphire’s capital city, has 42,000 people and Dover has 31,000, while Rochester has 30,000.

The subcommittee, which is chaired by Sen. Jeff Sessions (R-AL) — the intellectual leader of the modern conservative movement — has essentially proved that no matter where anyone in the first-in-the-nation primary state of New Hampshire lives, there are well more fugitive criminal aliens in the United States than the entire population of their home city. It will be interesting to see how this plays on the campaign trail in the final days.

Feb. 3, 2016

Refugee and Visa Programs

Homeland Security and State Department officials testified at a hearing on security concerns related to U.S. refugee and visa… read more

Homeland Security and State Department officials testified at a hearing on security concerns related to U.S. refugee and visa policy. Francis Taylor told committee members that the Department of Homeland Security was now looking at the social media accounts of refugees coming from “high risk” nations. The change was in response to the mass shooting by a husband and wife team in San Bernadino, California. The wife was a Pakistani immigrant in the U.S. on a visa