Lies in the Sky, Terror on the Ground

BostonGlobe: The United States remains an easy mark for drug dealers, terrorists and others who prize anonymity when registering aircraft or getting licensed to fly. So much for the lessons of 9/11.

As he sought to unspool the story behind the tragedy, Asnaldo Del Valle Gonzalez would come face to face with what he calls “the monster,” the web of secrecy that surrounds thousands of planes like the one that devastated his family, making it nearly impossible to identify a plane’s real owners and hold them accountable.

A Spotlight Team investigation has found that lax oversight by the Federal Aviation Administration, over decades, has made it easy for drug dealers, corrupt politicians, and even people with links to terrorism to register private planes and conceal their identities. With the US stamp of approval — signified by a number on the tail fin that always begins with the letter “N” — owners often find more freedom from scrutiny and anonymity while traveling. This has allowed criminals and foreign government officials to mask illicit activities or keep wealth hidden from their home countries.

The registered owner of the crashed twin-engine Piper, a company called Aircraft Guaranty, is part of a nearly invisible private industry that sometimes operates from computer terminals inside FAA offices in Oklahoma, busily registering planes on behalf of foreign nationals — and working in a system that allows them to hide their names from the public. More than 1,000 planes are registered in Aircraft Guaranty’s name at an address in a Texas town of 2,500 that doesn’t have an airport. But it’s enough to give clients both anonymity and coveted US registration for their planes.

Gonzalez never did figure out who really owned the plane that crashed into his home — even when the name of the client Aircraft Guaranty had on file, Luis Nuñez, was revealed during court proceedings. A court official who visited the listed Miami address for Nuñez found cobwebs on the doorknob and a package addressed to someone else. A private detective working for Gonzalez’s attorneys spent a year searching for additional clues and for Nuñez, before concluding that he was nothing more than a “phantom person.” The Globe also was unable to locate Nuñez.

More than 16 years after aircraft were used as weapons in the worst terrorist attack in US history, the FAA still operates more like a file clerk than a reliable tool for law enforcement, enabling secrecy in the skies here and abroad. The price to register a plane is still just $5 — the same as in 1964, even though the agency has the power to raise it — generating little revenue that could be used to expand oversight. And the FAA does so little vetting of the ownership and use of planes listed in its aircraft registry that two of the airliners hijacked and destroyed on 9/11 were still listed as “active” four years after. And that’s prompt compared to this: The FAA didn’t cancel the registration for one TWA cargo plane until 2016, 57 years after it crashed in Chicago, killing the crew and eight people on the ground.

Today, thousands of planes are registered using practices that can allow for anonymity of ownership. A Spotlight review shows that one out of every six aircraft is registered through trusts, Delaware corporations, or using post office box addresses, techniques commonly used to make it hard to discern the true owner. The number is likely even higher because the FAA acknowledged that it does not verify the validity of documents filed for the registry’s more than 300,000 planes.

There are 314,529 aircaft with N-numbers in the FAA’s registry.

54,232 of those aircraft are registered using known secrecy tactics.

7,610 are registered to companies known for providing trust services to non-U.S. citizens.

Critics, including federal investigators who’ve scrutinized the aircraft registry, say it is little more than “a big file cabinet” in which precious little information has been verified, leaving the door open for people with bad intentions to hide behind a US registration.

FAA officials essentially agree. They stress that they have a “robust oversight system” that includes a team of special agents to investigate fraudulent plane ownership, but say they don’t have the resources to determine whether information on US plane registration forms is accurate.

“The FAA is constantly working to strengthen the integrity of Registry information,” according to an FAA statement to the Spotlight Team that came after months of correspondence about the registry’s shortcomings. “The agency is developing a plan to significantly upgrade and modernize the aircraft registration process.”

But that’s no guarantee reforms will come swiftly, if at all. The FAA has a reputation for making change at a snail’s pace even when problems are clearly identified: The agency, for example, still doesn’t put a photo of the pilot on airman’s licenses 13 years after Congress called for it.

“It is like walking through thick glue. They just don’t move very quickly at the FAA, and it’s a chronic problem,” said former North Dakota senator Byron Dorgan, who served as chairman for the Senate aviation panel in 2009 and 2010. “I would have thought after 2001 that we would have made more progress by now with respect to verifying the ownership of aircraft.”

Today, the public often only discovers the gaps in US oversight when something goes wrong or criminal investigators get involved:

The Venezuelan air force shot down a US-registered, drug-loaded plane near Aruba in 2015, leaving a trail of bodies and cocaine floating in the bright blue sea. Records showed the aircraft was registered to a Delaware shell company and managed by Conrad Kulatz, a Fort Lauderdale attorney in his late 70s.

Federal agents investigating US-registered planes that bore the hallmarks of drug smuggling in 2013 found that three had been illegally registered here in the name of a Mexican national. He fooled the FAA simply by listing a Texas strip mall near the Mexican border as his address and claiming to be a US citizen.

Early this year, US officials labeled Venezuela’s vice president, Tareck El Aissami, a foreign narcotics kingpin, freezing access to his US assets, including a luxury jet. The Treasury Department charged that the jet, registered at the FAA in the name of a shell company, was actually controlled by El Aissami, who, in addition to drug trafficking, also has been accused of aiding Islamic extremists. But, at the FAA, the jet’s registration remains valid in the name of 200G PSA Holdings.

In 2015, federal authorities broke up a scheme to deliver US airplanes registered through trusts to an Iranian airline that US officials say helps to transport troops and materiel to the brutal regime of Bashar Assad in Syria. Though the sale was stopped, the names of the people who planned to sell the airliners to Mahan Air were not revealed publicly.

Photo, Mohammed Atta, 911 attacker crop duster

With so little oversight, there may be more dangerous people in control of American-registered planes whose names have not come to light. The 9/11 conspirators considered using private crop-dusting planes to launch terror attacks before deciding to hijack commercial planes instead. Three months before the World Trade Center attack, terrorist Zacarias Moussaoui was trying to acquire crop dusters in Oklahoma. There is no reason to think his efforts would have been blocked or even noticed by the FAA’s Aircraft Registry just a few miles away in Oklahoma City.

Responding to the Globe’s findings, US Representative Stephen Lynch, a Massachusetts Democrat who has long promoted corporate transparency, said the public urgently needs to know whether there are other potential terrorists among the thousands of unknown individuals who control US-registered planes.

“The FAA has basically abdicated their responsibilities,” said Lynch, who in July filed a bill requiring that the real owners of US-registered planes be publicly disclosed. “We have all these aircraft being operated by who knows who and for what purpose. . . . It’s not the exception, it is the rule, and I think it is important to hold the FAA accountable.”

Family pictures, fitness schedules, sticky notes, and birthday balloons decorate the computer terminals inside the FAA Civil Aviation Registry’s public documents room in Oklahoma City.

This is where members of the public can look up information on US-registered planes, but the terminals at the back are rarely used, according to the man at the desk, and when a Globe reporter tried one, it was slow and balky. Most of the other terminals — many of them seemingly better machines equipped with double monitors — are used by the same people day after day, and they’ve dotted their workstations with personal items.

They work for aircraft title companies, law firms, and companies that create trusts — the way for foreign nationals to register their planes here legally and without attracting public attention. Companies actually lease terminals in the document room, allowing Aircraft Guaranty to boast to potential clients that it has an office inside the FAA’s Mike Monroney Aeronautical Center.

For anywhere from a few hundred to several thousand dollars, the agents will create a legal trust to “own” private aircraft on behalf of their actual owners, whose names are typically not disclosed to the public. The registration form itself is even easier to complete — less work than registering a car in most states. Once the paperwork is done, agents can turn it in at the cashier’s window in the corner of the document room, paying a $5 registration fee whether the plane is a $20,000 Piper Tomahawk or a $20 million Learjet.

Then, the FAA is supposed to review the registrations for completeness, but a 2013 outside review found that the FAA is not very thorough. The Department of Transportation inspector general audit estimated that records for more than half the aircraft registered to non-US citizens through trusts were incomplete.

In part because US plane registration is so cheap, easy, and often anonymous, it is extremely popular for people registering internationally. Two-thirds of business jet owners worldwide register their planes in the United States, according to a 2014 estimate on the website Corporate Jet Investor. Another bonus: US-registered planes are believed to attract less attention when traveling internationally.

Defenders of these “noncitizen trusts” say they’re an important tool for businesses, especially companies that include foreign nationals among their owners or executives. US corporations conducting global business might have key officers who do not meet the FAA’s citizenship requirements. Additionally, noncitizens who plan to relocate planes from the United States sometimes set up trusts so that the plane has a legal owner while in transit.

Under US law, foreigners can’t legally register a plane here unless they have a US citizen or US-based legal entity to serve as their representative in dealing with the FAA. It is a longstanding safeguard that, in practice, safeguards nothing.

Champions of the trust system also point out that the FAA has tightened up the rules in recent years, requiring the trustees to disclose agreements with their clients to the FAA at the time of application for registration. The trusts don’t have to keep the names of their clients in the FAA’s permanent record, but they are supposed to make the information available to investigators when asked.

The FAA checks for the completeness of the paperwork, and trusts are often reviewed by the agency’s legal counsel’s office. However, the agency does not verify that the trust information is accurate, nor are they required to under the law. When the Department of Transportation inspector general tried to get the names of the real owners directly from trust companies in 2013, investigators said some trustees either refused to provide the information or took months instead of the two days allowed by the FAA to turn over the names.

The FAA, similarly, puts few restrictions on who can hang out their shingle as a trust company set up to register aircraft. As a result, the industry is a hodgepodge of banks, businesses, and individuals, including several lacking recognizable websites or phone numbers. At least three operate offshore in Germany, the Netherlands, and the United Kingdom — even though the whole point of such trusts is that they are supposed to provide a US contact for the FAA.

A Georgia-based trust company called Plane Fun Inc. exemplifies the elusiveness of several of the trust agents contacted by the Spotlight Team. Plane Fun lists a modest, split-level home in Snellville, Ga., as its headquarters, with more than 200 planes registered to the address.

But the home is owned by Kathleen Schumacher, who told the Globe she is not involved with the business. “I handle nothing on it; my son does,” Schumacher said. Despite repeated attempts, the Globe was unable to reach Schumacher’s son, Kenneth, who she said is the operator of Plane Fun.

Aircraft Guaranty, with offices in Texas and Oklahoma, is much bigger and more visible than Plane Fun. The nearly 30-year-old business describes itself as “one of the most well respected and trusted Trustee Service providers in the aviation industry.” But, like the manager of Plane Fun, Aircraft Guaranty owner Debbie Mercer-Erwin didn’t want to talk about her work.

Only after numerous attempts to interview Mercer-Erwin, including a visit to the single-family home in Oklahoma City where she has an office, did the Globe receive a statement from the company’s attorney.

Aircraft Guaranty “fully complies with all US laws and FAA and other regulations in providing this specific service to its customers,” wrote attorney Wallace C. Magathan III of Miami. He noted that the firm voluntarily follows federal “know your customer” rules, which require company officials to collect “personally identifiable information” from clients that may include name, date of birth, address, and identification number.

Magathan added that Aircraft Guaranty “is not in the business of thoroughly investigating its customers’ private business affairs.” He declined to answer the Globe’s questions about individual clients.

But detailed information about some of Aircraft Guaranty’s more unsavory past clients has come to light. One of them, Fausto Veliz Urbina, was sentenced to 78 months in federal prison for cocaine trafficking before being deported to Mexico in 2010. According to federal court records in Florida, he registered a plane through Aircraft Guaranty on behalf of a Mexican shell company, Consorcio Melun SA de CV, in 2012, something investigators discovered while looking at a fleet of planes suspected of involvement in drug trafficking.

A former Guatemalan vice president, Roxana Baldetti, has been indicted in the United States on federal drug charges and is currently jailed in her homeland. According to media reports, she regularly jetted around in a Raytheon 400A that FAA records show was registered by Aircraft Guaranty on behalf of a Panamanian company, Best Advisors Group Inc. Baldetti resigned and was arrested on fraud charges in 2015 amid media reports of her many luxury purchases, including multimillion-dollar homes.

And there’s Luis Nuñez, the “phantom person” whose plane — registered through Aircraft Guaranty — crashed into Asnaldo Gonzalez’s house. Gonzalez’s inability to find the real owner prevented his family’s attorneys from suing for damages to rebuild his family’s life.

Analysts say there’s a good reason that trust companies like Aircraft Guaranty are attractive to shady characters: Anonymity is good for business.

“Criminals find that US planes allow them to fly under the radar far more easily than if using some dodgy Russian aircraft,” said Kathi Lynn Austin, an expert in arms trafficking and executive director of the Conflict Awareness Project. “The simple act of flying out of US airspace — where regulatory standards are perceived to be high — conveys a level of legitimacy on its aircraft and its operator. The American flag also makes it easier for corrupt officials to wittingly turn a blind eye.”

In 2009, a jet registered on behalf of a foreign owner through Wells Fargo crashed in a remote area of the Bahamas, triggering scrutiny of the FAA’s noncitizen trust policy. FAA officials briefly shut down the option for foreigners to register through noncitizen trusts, amid concern that some plane owners were making side agreements that made ownership hard to trace, especially in an emergency.

“There was a frustration that everybody had,” Joe Standell, counsel to the FAA’s Aeronautical Center at the time, recently told the Globe. “You let them register airplanes as an owner trust. But look what that does; nobody is accountable.”

Trust companies such as Aircraft Guaranty teamed up with businesses to ensure the survival of noncitizen trusts, arguing they are crucial to companies with multinational executives who want to own American-registered aircraft. In all, a dozen associations along with 70 companies and law firms combined forces to deluge the FAA with comments.

“If it isn’t broken, don’t fix it,” advised Conrad Kulatz, the Florida attorney linked to the drug-laden plane shot down off Aruba in 2015, in a 2012 e-mail to the FAA. “I have never had a problem arising from trustee registration of aircraft in over 30 years practicing law in South Florida.”

The FAA eventually backed off, allowing foreign plane owners to use noncitizen trusts as long as they met some new conditions: share the trust agreements with the FAA and agree to provide ownership information within 48 hours when requested.

A bright orange fireball erupted on the screen of Jeroen Lucas’s video camera while he filmed a commercial for his media firm in the early morning of Jan. 29, 2015. His frame captured the Aruba skyline twinkling at dawn as a flaming streak twisted and turned over the Caribbean Sea.

Minutes before the flash appeared, a business jet had failed to respond to air traffic controllers, and soon the Venezuelan Air Force marked the private jet in its crosshairs. A shot transformed the white and green Challenger 600 into a Roman candle spiraling through thick gray clouds. The plane crashed in the water, killing three people. More than a ton of cocaine floated on the waves.

The aircraft was obtained by two Colombian drug kingpins, Dicson Penagos-Casanova and Juan Gabriel Rios Sierra, who worked as key members of an international drug trafficking ring that supported multiple cartels bringing cocaine to the United States, federal prosecutors said in the indictment.

But the aircraft’s tail number, N214FW, told a different story, tracing the ownership of the plane to a company incorporated in Delaware, a state that often requires minimal public disclosure about the owners of a business. FAA records showed that the cocaine-packed plane was owned by Dinama Aircorp Inc., formed in Delaware less than two weeks before it purchased the airplane in 2013. According to FAA records, the president and sole officer of the firm was Kulatz, the Fort Lauderdale attorney who, a few years earlier, sent an e-mail to the FAA opposing efforts to make plane ownership more transparent.

There are nearly 200 other planes registered to the same address as Dinama Aircorp in Delaware, including a jet that was seized in 2014 by the Dominican Republic, according to a Globe analysis. Kulatz and another attorney are listed as the key officers of the firm that registered the seized plane.

Kulatz did not respond to repeated calls and correspondence from the Globe. At one point, a receptionist at his office said Kulatz had retired. In July, the Florida bar association listed him as ineligible to practice law because he did not meet the continuing legal education requirement.

Penagos-Casanova and Rios Serra are like many drug traffickers who actively seek American planes because they believe they can more easily “fly under the radar,” according to Benjamin Barron, an assistant US attorney in the Central District of California, who prosecuted the pair. To ensure success, they paid aircraft owners a fee of about 30 to 35 percent of the cocaine shipment and bribed Venezuelan military and government officials, according to federal court records. Kulatz has not been accused of wrongdoing in connection with the case.

“They hope they will attract less suspicion particularly by using expensive jets that are US-registered and might appear to be something that a corporation might use,” Barron said. “It’s all a way of avoiding detection and getting the cocaine safely from point A to point B.”

But Delaware makes hiding especially easy for corporations of all kinds, setting some of the nation’s most lenient rules. For as little as $90, people can create a Delaware-based company to “own” anything they don’t want to be associated with by name. Delaware goes further in protecting privacy than most states, not requiring a list of officers for some types of firms.

Transparency International, a global anticorruption organization, calls Delaware a haven for transnational crime and “a place where extreme corporate secrecy enables corrupt people, shady companies, drug traffickers, embezzlers, and fraudsters to cover their tracks when shifting dirty money from one place to another.”

More than one-third of all US aircraft — 122,336 — are registered to corporations. Of those, nearly 11,000 are registered to firms in Delaware.

A review of FAA records by the Globe found that about 3,500 aircraft are registered to more than 2,000 companies located at a single Wilmington address that is home to a business incorporator.

It is impossible to know how many planes are registered to non-US citizens through trusts because the FAA does not keep track. The Globe identified several businesses that provide the service. Together they have more than 7,500 aircraft registered across the country.

Law enforcement officials say these easy-to-create shell companies can be significant roadblocks in trying to convict criminals. A Los Angeles DEA agent who investigates narcotics-related aircraft said the dummy ownership makes it harder for him to draw a direct connection between drug dealers and their product.

“If I can’t demonstrate the individual who owned the aircraft or whose name was on the registration paperwork received money to knowingly and intentionally purchase this vessel in a drug transaction, then almost always there is no prosecution,” said the agent, who spoke on condition of anonymity because the case is ongoing.

Penagos-Casanova and Rios Serra acquired a second drug-loaded plane that crashed in the Caribbean Sea due to engine failure in May 2015, according to court papers. In all, authorities recovered more than $70 million worth of cocaine from the two planes.

Both men pleaded guilty in US District Court in Los Angeles to “conspiracy to possess cocaine on board a United States-registered aircraft with intent to distribute.” They are awaiting sentencing.

Colombian kingpins are not the only suspicious users of aircraft registered to corporations set up by Kulatz, the Florida attorney. He and his wife are listed as officers of Delaware-based Secure Aircorp Inc., which owns the Gulfstream American 2 jet that was seized in 2014 by the Dominican Republic, according to FAA records.

N522HS was seized as part of an investigation by the Dominican Republic’s Justice Ministry Anti-Corruption Department into possible money laundering and embezzlement by one of the country’s senators, Felix Bautista. According to Dominican media reports, authorities said Bautista attempted to evade prosecution and the forfeiture of his aircraft by changing the plane’s tail number about two months before he was indicted. While businesses and individuals may request specific tail numbers to act as vanity plates, criminals utilize the tactic to evade detection, much like switching a license plate on a car.

FAA officials in a statement said such number changes are routine: “The Registry does not generally deny requests for a number change,” in part because they can still track planes by their serial numbers.

Likewise, FAA officials appeared to have no idea that plane N214FW had been shot down off Aruba or that it was controlled by alleged international drug lords. About 15 months after the plane crashed, the agency sent a notice to Dinama Aircorp reminding the company to renew registration for N214FW. Over several months, the agency sent multiple letters to the same address and all came back to Oklahoma City marked “Return to sender.”

30 years of frustration

Ronald Reagan was president when Congress took the FAA to task for not doing enough to keep criminals from secretly acquiring US-registered planes as well as pilot’s licenses.

At the 1988 hearing held by the House Committee on Public Works and Transportation, members wanted to know why the FAA so rarely revoked aircraft and airmen certifications for individuals knowingly violating controlled substance laws in the Aviation Drug-Trafficking Control Act of 1984. Over a four-year period, the FAA revoked the certifications of only three aircraft and six airmen.

Law enforcement officials explained that criminals were able to hide behind a veil of anonymity created through fictitious owners, fake addresses, post office boxes, illegible signatures on documents, repeated changes in ownership, and the switching of tail numbers. These administrative issues — found on paper and documents — created hurdles for law enforcement officers attempting to fight the US war on drugs.

“Aircraft identification and registered owner identification is an elusive veil, behind which the smuggler finds refuge,” testified Carol Knapik, then a detective with Florida’s Broward County sheriff’s office. “All to his advantage that there is no true piece of identification required for the registration of an aircraft.”

Congress directed the agency to make information in the aircraft registry more reliable, prompting common-sense reforms at the FAA such as using computer software to validate addresses and requiring that signatures be legible.

But after 9/11, the continuing weakness of FAA oversight — and the urgent need for reliable information — became increasingly obvious. An internal agency audit of the aircraft registry in 2010 found unreported address changes and sales that left the ownership of about one-third of the more than 300,000 aircraft on the registry in question. In response, the FAA required reregistration of all aircraft with mandated renewal.

Three years later, the inspector general at the Department of Transportation identified a concerning pattern among trusts set up on behalf of foreigners: 5,600 of the aircraft records maintained by the FAA were incomplete, often lacking key information on owner identities. And, in a follow-up letter, the investigators identified several trust-owned aircraft that should have set off alarms:

An FAA inspector was unable to obtain information about who was flying a US trust-registered Boeing 737 in the United Arab Emirates. The plane was suspected of not following US regulations and possibly being used for illegal activity.

Hours before the United Nations Security Council met in 2011 to approve a no-fly zone over Libya, a US plane registered to a trust approached the Tripoli International Airport without a landing permit.

And one aircraft was registered in a trust arrangement on behalf of a Lebanese politician who was “backed by a well known US government-designated terrorist organization.”

It wasn’t until March 2017, after months of questions from the Globe, that FAA officials sat down with the inspector general to address its seven major concerns. After the meeting, the inspector general said the FAA had addressed three of them, tackling issues of data integrity and security.

‘A crown jewel target’

Today, US air security is a study in contrasts. Since the attacks of 9/11, the government has made enormous changes to security procedures in commercial air travel, creating a whole new agency to screen passengers before they board. Since hijackers seized and weaponized four commercial airliners that September morning in 2001, the public has gotten used to a host of small indignities, from removing shoes to whole-body scans and dogs sniffing their carry-ons, all in the name of safety on planes.

But there have been far fewer security improvements for planes used in general aviation that, collectively, represent three-quarters of all US air traffic.

Partly, that may reflect some security analysts’ view that private planes can do far less damage as tools of terror than airliners.

But private planes have been used in attacks such as Joseph Stack’s 2010 suicide crash into the IRS offices in Austin, Texas, which killed an IRS agent and injured 13 others. Stack had posted a suicide note about the “greed” of the IRS on the same day he burned down his own house and deliberately flew his Piper Dakota into the four-story office building.

The 9/11 conspirators had bigger ambitions for small planes. Zacarias Moussaoui, one of the masterminds who had looked into buying crop-dusters in Norman, Okla., and possessed “a computer disk containing information related to the aerial application of pesticides” when he was arrested, according to his 2001 indictment. The indictment said that lead hijacker Mohammed Atta made similar inquiries in Florida in 2000 and 2001.

In June, all these years later, the head of US Homeland Security called commercial aviation “a crown jewel target” for terrorists.

“The threat has not diminished. In fact, I am concerned that we are seeing renewed interest on the part of terrorist groups to go after the aviation sector,” said John Kelly, then-Department of Homeland Security secretary and now President Trump’s chief of staff, during remarks on enhanced aviation security for commercial flights in June.

Scars that won’t heal

For Asnaldo Gonzalez, the failed oversight of US-registered planes had a devastating effect. The federal lawsuit filed on his behalf by Podhurst Orseck, a Miami-based firm, against the plane’s owner was dropped partly because the true owner couldn’t be found to hold accountable. To this day, nine years later, Gonzalez still cannot afford to rebuild his shattered home.

“Absolutely everyone is in total and absolute silence,” said Alfredo Jose D’Ascoli Centeno, an attorney for the Gonzalez family in Caracas.

Before the crash, Gonzalez’s own multistory dwelling was the largest home on the block. It served as an imposing reminder of an accomplished dream — a house built to fit his entire extended family.

Now the cement walls peel with black and gray scars. The bedrooms, once filled with the laughter of his grandchildren, resemble oversized emptied ashtrays. An old couch, two plastic chairs, and wall decorations of homes shifted sideways are among the only family items left behind in the uninhabitable house.

“What I’m looking for is for everyone involved in this tragedy to be held responsible,” said Gonzalez, who continues to pursue the case in Venezuela. “My family and I are fighting without any type of economic resources, and we will fight to the end. “

As Gonzalez recounts his nightmare, voices of children echo from the elementary school across the street as they change classes and play at recess. His wife, Carmen, folds her hands inside of her lap and presses her lips together. The story makes her breathe in hard.

Gonzalez’s grandson, Joecruz, who was rescued from his burning crib and is now 9, paces in the background as he listens to the familiar story that always ends with the same terrifying climax: The explosion. The terror. The deaths.

Joecruz wears his baseball cap low, covering his dark hair and a burn scar that stretches across his forehead. Below his deep brown eyes on both of his cheeks are two more scars, constant reminders he’s unable to erase.

Part Two, coming soon.

 

 

The Rest of the Questions/Conditions Regarding North Korea

The Beijing government knows full well all the ins and outs of North Korea including all banking relationships, cyber attacks, illicit activities, counterfeiting and gets assistance from China on how to skirt international sanctions. Still, China has the ability to make the world safer from the rogue Kim regime including outside assistance from Syria, Venezuela, Iran and Russia. Whatever the future holds for global security and equilibrium, Beijing is responsible.

Photo

North Korean leader Kim Jong Un is fixated on obtaining a serious nuclear arsenal, and continues to thumb his nose at the U.S. and other world powers. The latest round of United Nations Security Council sanctions approved Monday are not going to change that. But one aspect of them — new measures to interdict ships breaking trade embargoes against Pyongyang — could be baby steps toward much stronger sanctions enforcement.

The new resolution gives the U.S. and other countries the power to inspect ships going in and out of North Korea’s ports but, unfortunately, does not authorize the use of force if the target ships don’t comply. Equally bad, the inspections would need the consent of the countries where the ships are registered. This is a far weaker regime than what was initially proposed by the Donald Trump administration, which would have empowered U.S. military vessels to “use all necessary measures” to force compliance. That the language was watered down to avoid a veto from Russia or China.

The fact is, the only way to keep the Kim regime from violating UN sanctions would be a stringent naval blockade. While a full-on blockade would require a Security Council resolution, it would be possible for the U.S. to immediately start putting in place the rudiments of a comprehensive inspection regime on the high seas, which could be easily adapted over time as more allies, partners and ultimately geopolitical competitors like China and Russia can be persuaded to sign on. Indeed, the Trump administration has already been thinking along these lines.

Such a blockade would serve three key purposes: definitively cutting off North Korea’s access to oil imports from the sea; stopping Korean exports, especially textiles and seafood (which are of significant hard currency value to the regime); and ensuring that high-tech machinery and raw materials that might support Kim’s nuclear-weapons and missile programs are not allowed into the Hermit Kingdom.

While China might continue to provide such supplies across the long Chinese-North Korean land border, a naval blockade would increase pressure on Beijing to comply with existing UN sanctions, as any illegal imports would be obvious proof of Chinese violations.

Setting up a naval blockade is a tactical challenge, even for the U.S. North Korea operates commercial and military ports on its east and west coasts of the peninsula, including Nampo on the Bay of Korea and Hungnam on the Sea of Japan. It also has ports in the far northeast of the country on the edge of Russia, which has been one of Kim’s apologists on the world stage. Shutting down the entire flow of goods into and out of North Korea would significantly tax the U.S. Pacific Fleet.

But it wouldn’t be impossible. The blockade would probably be commanded and controlled tactically out of Seoul, at the headquarters of the commander of U.S. Forces Korea, Army General Vincent Brooks. (An odd legacy of the Korean War is that Brooks is also the commander of UN forces on the peninsula.) At sea, the Navy would probably operationalize the blockade under the overall tactical control of the commander of the U.S. Seventh Fleet, which is based across the Sea of Japan in Yokosuka. The flagship of the fleet, the USS Blue Ridge, is optimized for complex combat operations and would be the seagoing base for the blockade. The fleet has a new commander, Admiral Phil Sawyer, who was brought after the collisions of two Navy destroyers, the McCain and Fitzgerald, with commercial ships this year. More here from Bloomberg.

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There is an international program to practice and plan for anything that North Korea may have in process militarily.

North Korea’s intensifying experiments appear to have prompted the Formidable Shield exercise, which is the first time that Nato allies have practised defending against incoming ballistic missiles with no prior warning in Europe.

It launched the day after the US sent bombers and fighter jets over waters east of North Korea to send a “clear message that the President has many military options to defeat any threat”.

Donald Trump appeared to threaten regime change in the country over the weekend, causing the North Korean foreign minister to accuse the President of “declaring war” in a speech at the United Nations.

American forces are leading the exercise off the coast of the Scotland, alongside troops from Britain, Canada, France, Germany, Italy, Spain and the Netherlands.

The Ministry of Defence (MoD) hailed Formidable Shield as “one of the most sophisticated and complex air and missile exercises ever undertaken in the UK”.

A Royal Navy Type 45 Destroyer and two Type 23 frigates are being joined by 11 other ships, 10 aircraft and 3,300 personnel for the month-long exercise.

They will work together to detect, track and shoot down live anti-ship and ballistic missiles. More here.

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Earlier this month CIA Director Mike Pompeo suggested “the North Koreans have a long history of being proliferators and sharing their knowledge, their technology, their capacities around the world.”

My research has shown that North Korea is more than willing to breach sanctions to earn cash.

A checkered history

Over the years North Korea has earned millions of dollars from the export of arms and missiles, and its involvement in other illicit activities such as smuggling drugs, endangered wildlife products and counterfeit goods.

North Korean technicians allegedly assisted the Pakistanis in production of Krytrons, likely sometime in the 1990s. Krytrons are devices used to trigger the detonation of a nuclear device.

Later in the 1990s, North Korea allegedly transferred cylinders of low-enriched uranium hexafluoride (UF6) to Pakistan, where notorious proliferator A.Q. Khan shipped them onward to Libya. UF6 is a gaseous uranium compound that’s needed to create the “highly enriched uranium” used in weapons.

The most significant case was revealed in 2007 when Israeli Air Force jets bombed a facility in Syria. The U.S. government alleges this was an “undeclared nuclear reactor,” capable of producing plutonium, that had been under construction with North Korean assistance since the late 1990s. A U.S. intelligence briefing shortly after the strike highlighted the close resemblance between the Syrian reactor and the North Korean Yongbyon reactor. It also noted evidence of unspecified “cargo” being transported from North Korea to the site in 2006.

More recently, a 2017 U.N. report alleged that North Korea had been seeking to sell Lithium-6 (Li-6), an isotope used in the production of thermonuclear weapons. The online ad that caught the attention of researchers suggested North Korea could supply 22 pounds of the substance each month from Dandong, a Chinese city on the North Korean border.

There are striking similarities between this latest case and other recent efforts by North Korea to market arms using companies “hidden in plain sight.”

The Li-6 advertisement was allegedly linked to an alias of a North Korean state arms exporter known as “Green Pine Associated Corporation.” Green Pine and associated individuals were hit with a U.N. asset freeze and travel ban in 2012. The individual named on the ad was a North Korean based in Beijing formerly listed as having diplomatic status. As was noted when the Li-6 story broke, the contact details provided with the ad were made up: The street address did not exist and the phone number didn’t work. However, prospective buyers could contact the seller through the online platform.

This case – our most recent data point – raises significant questions. Was this North Korea testing the water for future sales? Does it suggest that North Korea may be willing to sell materials and goods it can produce in surplus? Was the case an anomaly rather than representative of a trend? More here.

Citizenship for Sale in U.S and EU, the Golden Ticket

In the United States, with a starting number such as $500,000, you can buy a passport and with just a little more you can advance to citizenship under the EB-5 visa program. Swell huh? It has been going on for years and even Senator Dianne Feinstein has an issue with it. So, where is President Trump on the matter? Crickets…..

In February of this year, Senator Grassley and Feinstein introduced legislation to stop the EB-5 abuse.

The EB-5 program is inherently flawed,” Feinstein said in a joint statement with Grassley on Friday. “It says that U.S. citizenship is for sale. It is wrong to have a special pathway to citizenship for the wealthy while millions wait in line for visas.”

Roughly 10,000 EB-5 visas are awarded each year, with more than 85 percent going to Chinese investors in 2014, according to a study by Savills Studley, a real estate services firm. The program, begun in 1990 to stimulate the economy, has turned into a convenient way for wealthy Chinese citizens to become permanent U.S. residents and later bring over their family members. More here.

The Chinese, the Ukrainians and the Russians, all oligarchs are the largest exploiters of the program and most of these oligarchs are corrupt, paying for speedy processes with dirty money.

We know there are multiple investigations going on inside the DC Beltway regarding Russian interference and rightly so. Both Democrats and Republicans have some complicity in foreign collaboration.

In March of this year, this site published an extensive summary of Russian relations with people in the Trump camp as well as with Nancy Pelosi and Steny Hoyer. Few take a look at Secretary Wilbur Ross and his Cyprus connections. Cyprus is a location where abuse and corruption is as normal as breathing. One interesting person is Dmitry Rybolovlev, who happens to know Donald Trump as well as Wilbur Ross.

Beyond paying for a speedy process to obtain a passport or citizenship, there is also yet another method and that is money laundering illicit funds through U.S. real estate purchases where the buyer’s name is not listed if cash is paid. You dont say…..yup. This site published a summary of such activities in July of 2014.

So, while we have examined the issue in the United States and in Cyprus, it is the same for the European Union.

Russian and Ukrainian oligarchs suspected of corruption are among hundreds who have acquired EU passports under the “golden visa” program – a bourgeois shortcut to European citizenship in exchange for cash investments, the Guardian reported Sunday.

A list of recipients seen by The Guardian includes “prominent businesspeople and individuals with considerable political influence.”

The paper claims that Cyprus alone has made over $US 4 billion selling passports to international oligarchs, “granting them the right to live and work throughout Europe,” completely legally.

However, Cyprus is not alone. “The Golden Visa program for Spain, Portugal, Malta, Greece and Cyprus are the most prominent. Bulgaria and Hungary offer residency and citizenship by investment in Europe through government bonds,” the Golden Visa website states.

The BBC reported about this kind of purchasable citizenship three years ago.

“Just like you diversify an investment portfolio, you want to diversity your passport portfolio,” investment expert Christian Kalin, told the BBC.

The list of individuals who have received Cypriot citizenship includes Bashar al-Asad’s cousin, who was previously placed under American sanctions because of allegations he benefited from corruption. It also includes a former member of the Russian parliament and the founder of Ukraine’s largest bank.

According to Global Witness, an international NGO dedicated to exposing global corruption, global visas have the potential to give applicants fleeing persecution a “get out of jail for free card.”

Portuguese MEP, Ana Gomes, said golden visas are an immoral way to grant citizenship.

“I’m not against individual member states granting citizenship or residence to someone who would make a very special contribution to the country, be it in arts or science, or even in investment. But granting, not selling,” said Gomes.

Gomes also questioned the secrecy of obtaining golden visas. If they’re legal, why is it so hard to see who has them, asked Gomes.

The European Parliament will be debating the legality of golden visas in light of the leak, The Guardian reported.

So, for the leaders of respective countries, the definition of citizenship and the spirit of that loyalty means nothing when it comes to money, dirty money.

Perhaps we should be pushing harder for the Grassley/Feinstein legislation at a minimum….what say you?

 

Starfish Prime, a Response to North Korea?

The United States knows all too well about an EMP. With regard to North Korea, the Kim regime has acknowledged it was active in EMP pursuits. The U.S. has EMP weapons developed by Boeing.

So what is Starfish Prime?

On July 9, 1962 — 50 years ago today — the United States detonated a nuclear weapon high above the Pacific Ocean. Designated Starfish Prime, it was part of a dangerous series of high-altitude nuclear bomb tests at the height of the Cold War. Its immediate effects were felt for thousands of kilometers, but it would also have a far-reaching aftermath that still touches us today.

In 1958, the Soviet Union called for a ban on atmospheric tests of nuclear weapons, and went so far as to unilaterally stop such testing. Under external political pressure, the US acquiesced. However, in late 1961 political pressures internal to the USSR forced Khrushchev to break the moratorium, and the Soviets began testing once again. So, again under pressure, the US responded with tests of their own.

It was a scary time to live in.

The US, worried that a Soviet nuclear bomb detonated in space could damage or destroy US intercontinental missiles, set up a series of high-altitude weapons tests called Project Fishbowl (itself part of the larger Operation Dominic) to find out for themselves what happens when nuclear weapons are detonated in space. High-altitude tests had been done before, but they were hastily set up and the results inconclusive. Fishbowl was created to take a more rigorous scientific approach. Read more here.

The Wall Street Journal published an item offering insight regarding North Korea and the threat of an EMP and the United States is not prepared for such a weapon in either a defensive or offensive posture without some exceptional consequence to life.

As South Korea performed some live fire drills in response to the last nuclear test by North Korea that measured a 6.3 on the Richter Scale, at issue is the immediate line of  an estimated thousands of rockets pointed at South Korea. It would take a robust offensive first strike to remove this border threat in cadence with other strike operations into the North Korea tunnel network where most of the weaponry is located.

Finally, South Korea’s leader has taken a more aggressive posture, leaning towards a military operation and this could bring the closer to Japan which is a positive indication where activities to neutralize North Korea is tantamount.

Tensions sharply escalated Sunday as the communist regime conducted what it claims to have been a test of a hydrogen bomb mountable on an intercontinental ballistic missile (ICBM). The test was only the latest in a recent series of saber-rattling, including two ICBM tests in July.

In its report to the legislature’s defense committee, the defense ministry said that it, in consultation with Washington, will seek to deploy a nuclear-powered aircraft carrier, strategic bombers and other powerful assets to the peninsula as a response to the North’s nuclear experiment.

It also unveiled its plan to stage unilateral live-fire drills involving Taurus air-to-surface guided missiles mounted on its F-15K fighter jets. The missile, with a range of 500 kilometers, is capable of launching precision strikes on the North’s key nuclear and missile facilities.

In his assessment of the sixth nuke test, Song said that the North is presumed to have reduced the weight of a nuclear warhead to below 500 kilograms. More here.

Adding more sanctions on China or those doing business with North Korea does not stop or deter North Korea at all. China knows precisely what North Korea is doing and has not moved to stop any of these missile or nuclear activity.

Photo

North Korea’s nuclear test occurred in Punggye-ri, the same site where a nuclear test occurred in January 2016, about 50 miles away from the border with China. Tremors were felt in the Chinese border city of Yanji, home to about 400,000 people, Chinese media reported.  The latest test occurred as China hosted the leaders of the BRICS (Brazil, Russia, India, China and South Africa) countries for their annual summit. China “strongly condemned” North Korea’s provocation and a draft communique from the BRICS summit quoted in Chinese state media “strongly deplored” North Korea’s nuclear test but called for a peaceful solution to the crisis. More here.

All the alleged professional continue to say the United States, Japan and South Korea have no good options with regard to North Korea, and there may be some truth to that given the descriptions as defined here.

What is left out of all conversations is the cyber abilities of the United States, knocking out North Korea’s space segments on existing satellites owned by China, Iran or Russia and lastly once again dusting off the files of Starfish Prime as described below:

Launched via a Thor rocket and carrying a W49 thermonuclear warhead (manufactured by Los Alamos Scientific Laboratory) and a Mk. 2 reentry vehicle, the explosion took place 250 miles (400 km) above a point 19 miles (31 km) southwest of Johnston Island in the Pacific Ocean. It was one of five tests conducted by the USA in outer space as defined by the FAI. It produced a yield equivalent to 1.4 megatons of TNT.

The Starfish test was one of five high altitude tests grouped together as Operation Fishbowl within the larger Operation Dominic, a series of tests in 1962 begun in response to the Soviet announcement on August 30, 1961 that they would end a three-year moratorium on testing.[2]

In 1958 the United States had completed six high-altitude nuclear tests, but the high-altitude tests of that year produced many unexpected results and raised many new questions. According to the U.S. Government Project Officer’s Interim Report on the Starfish Prime project:

“Previous high-altitude nuclear tests: YUCCA, TEAK, and ORANGE, plus the three ARGUS shots were poorly instrumented and hastily executed. Despite thorough studies of the meager data, present models of these bursts are sketchy and tentative. These models are too uncertain to permit extrapolation to other altitudes and yields with any confidence. Thus there is a strong need, not only for better instrumentation, but for further tests covering a range of altitudes and yields.”[3]   

More details here. 

 

Now al Shabaab has Ownership of Uranium Set for Iran

 

 

 

 

 

 

 

 

In 2015:

Somali Minister of Petroleum and Mineral Resources, Mohamed Muktar Ibrahim has talked about the Somalia’s Mineral Resources saying that they have made contacts with International Atomic Energy Agency (IAEA) on the controlling of minerals that can be use chemical weapons.

He noted they are taking measures to prevent raw materials like Uranium to fall into the hands wrong people.

In an exclusive interview he gave to Universal TV, the minister highlighted that they also held talks with UNDP which had information on mining depots in the country as it has surveyed on the country’s mineral deposits in the years between 1965 and 1975.

In a UN report released in 1968 shows that Somalia is a hotspot for uranium.

Somali government is busy amending some provision in the Mineral Law 1984 and compliance with the current conditions in the country now.

To read the full letter, go here.

An Al Qaeda affiliate has seized control of uranium mines in Africa with the intent of supplying the material to Iran, according to a diplomatic letter from a top Somali official appealing to the U.S. for “immediate military assistance.”

The letter, reviewed by Fox News, was addressed to U.S. Ambassador to Somalia Stephen Schwartz. Somalia’s Ambassador to the U.S. Ahmed Awad confirmed to Fox News on Thursday that the letter “has indeed been issued” by Minister of Foreign Affairs Yusuf Garaad Omar, whose signature is on the document.

The Aug. 11-dated letter delivered an urgent warning to the U.S. that the al-Shabaab terror network has linked up with the regional ISIS faction and is “capturing territory” in the central part of the country.

“Only the United States has the capacity to identify and smash Al-Shabaab elements operating within our country. The time for surgical strikes and limited engagement has passed, as Somalia’s problems have metastasized into the World’s problems,” the letter said. “Every day that passes without intervention provides America’s enemies with additional material for nuclear weapons. There can be no doubt that global stability is at stake.”

The State Department would not comment on the diplomatic letter, but did not dispute its authenticity and referred Fox News to the government of Somalia. Iran was supposed to pull back on its nuclear program under the terms of the agreement struck with the Obama administration. More here from FNC.

***

Background:

Is Somalia a safe haven for terrorists?

On one hand, Somalia is a chaotic, poor, battle-weary Muslim country with no central government and a long, unguarded coastline. Its porous borders mean that individuals can enter without visas, and once inside the country, enjoy an almost complete lack of law enforcement. Somalia has long served as a passageway from Africa to the Middle East based on its coastal location on the Horn of Africa, just a boat ride away from Yemen. These aspects make Somalia a desirable haven for transnational terrorists, something al-Qaeda has tried to capitalize on before, and is trying again now.

On the other hand, Somalia is different from other failed states in several ways. While it is roughly the size of Afghanistan, its landscape lacks Afghanistan’s many natural hiding places and does not offer the topographical haven of other states like Yemen. It is also a fiercely clan-oriented culture with an aversion to foreign presence of any kind, including Arab jihadi organizations. “When you get these extremist ideologies, the Somalis look at them and they are immediately perceived as foreign,” says Bruton, “They’re perceived as Arab. It’s an Arab ideology. And just as the Somalis are hostile to American ideology, they’re hostile to Arab ideology as well.” Finally, the Somalis–Sufi Muslims since the birth of Islam in the seventh century–have moderate religious views; until recently, Taliban-style fundamentalism was unfamiliar in the country.

These factors were responsible for al-Qaeda’s failure in the 1990s, when it tried working closely with al-Ittihad al-Islami (AIAI). Al-Qaeda was unable to root itself in Somalia’s clan system, and, according to former ambassador to Ethiopia David Shinn, “overestimated the degree to which Somalis would become jihadists.” The experience of the al-Qaeda operatives was so treacherous that Bruton says: “U.S. intelligence officials came up with a verdict that Somalia was actually inoculated from foreign terrorist groups, that it’s just fundamentally inhospitable, that the clan system is so closed to foreigners that there’s just no way that these groups can operate.”

Since the Ethiopian invasion, al-Qaeda has seen a resurgent connection to the country, and HI and al-Shabaab control most of the territory. However, experts disagree over whether Somalia could be the base for an international attack or whether the group will continue its domestic focus. “Personally, my view is that they don’t have much to gain by [partnering with al-Qaeda to conduct an international attack],” Bruton says. “And they probably don’t have the capacity to do it. But it’s worrisome that they’re making the threats, so I think it’s something to be watched and assessed very carefully. But right now, I would say the odds of a transnational attack are very, very low.”  More here.