Cyber: ‘Our adversaries have grown more emboldened’

Posted on February 27, 2018February 27, 2018 by Denise Simon

Primer:

Russia hasn’t been sufficiently penalized for its meddling in the 2016 U.S. elections and that has emboldened Moscow to continue interfering in American elections, Adm. Michael Rogers, Commander of the U.S. Cyber Command, told the Senate Armed Services Committee on Tuesday.

“They haven’t paid a price sufficient to change their behavior,” Rogers said under questioning by Sen. Richard Blumenthal, D-Conn. Although the United States has taken some actions, including imposing additional sanctions and Special Counsel Robert S. Mueller III has indicted more than a dozen Russians for their role in the interference, “it hasn’t changed the calculus,” Rogers said, adding that “it hasn’t generated the change in behavior that we all know we need.”

In another exchange with Sen. Elizabeth Warren, D-Mass., Rogers said that Russian President Vladimir Putin has probably come to the conclusion that “that there’s little price to pay here so I can continue the activity” of interfering in the U.S. election system. More here.

*** In context however, where is Senator(s) Warren and Blumenthal’s proposed legislation on sanctions or punishment toward Russia for cyber and active measures interference? It was political posturing by Warren and Blumenthal when they can introduce multi-faceted legislation as Russia, China and North Korea continue to attack the United States via layered cyber operations including espionage.

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WASHINGTON, Feb. 27, 2018 —

Although competitors such as China and Russia remain the greatest threat to U.S. security, rogue regimes such as Iran and North Korea have increased in capabilities and have begun using aggressive methods to conduct malicious cyberspace activities, the military’s top cyber officer told Congress today.

Navy Adm. Michael S. Rogers, director of the National Security Agency, commander of U.S. Cyber Command and chief of the Central Security Service, testified at a Senate Armed Services Committee hearing.

“Our adversaries have grown more emboldened, conducting increasingly aggressive activities to extend their influence without fear of significant consequence,” Rogers said. “We must change our approaches and responses here if we are to change this dynamic.”

But as the cyber domain has evolved, Rogers told the senators, Cybercom’s three major mission areas endure: protecting the Department of Defense Information Network; enabling other joint force commanders by delivering effects in and through cyberspace; and defending the nation against cyber threats through support to the Department of Homeland Security and others when directed to do so by the president or secretary of defense.

Cybercom Milestones

Rogers highlighted milestones in Cybercom’s growth.

Joint Force Headquarters DODIN, the subordinate headquarters responsible for securing, operating and defending the Defense Department’s complex information technology infrastructure, has achieved full operational capability, he said.

Joint Task Force Ares, created to lead the fight in cyber against the Islamic State of Iraq and Syria, has successfully integrated cyberspace operations into broader military campaigns, has achieved some “excellent results,” and will continue to pursue ISIS in support of the nation’s objectives, the admiral told the Senate panel.

Cybercom also has significantly enhanced training in cyber operation platforms to prepare the battlespace against key adversaries, he said.

Milestones expected to be achieved this year include Cyber Command’s elevation to a combatant command responsible for providing mission-ready cyberspace operations forces to other combatant commanders, Rogers said.

New Facility

In addition, the admiral said, Cybercom will be moving into a state-of-the-art integrated cyber center and joint operations facility at Fort Meade, Maryland, enhancing the coordination and planning of operations against cyber threats.

“Without cyberspace superiority in today’s battlefield, risk to mission increases across all domains and endangers our security,” Rogers said.

Cybercom’s focus on innovation and rapid tech development has extended all the way to small businesses and working with the private sector while maintaining cybersecurity, Rogers told the committee.

“We intend in the coming year to create an unclassified collaboration venue where businesses and academia can help us tackle tough problems without needing to jump over clearance hurdles, for example, which for many are very difficult barriers,” Rogers explained.

After serving more than four years as a commander of Cybercom and after nearly 37 years of service as a naval officer, Rogers is set to retire this spring.

“I will do all I can during the intervening period to ensure the mission continues, that our men and women remain ever motivated, and that we have a smooth transition,” he said.

N Korea Linked to Syrian Chemical Weapons

Posted on February 27, 2018February 27, 2018 by Denise Simon

While there has been some chatter that the United States would consider talks with North Korea, that likelihood appears rather dim.

Ambassador Joseph Yun, the special representative for North Korea Policy, is retiring this week after more than 30 years in the Foreign Service.

Yun is yet another member of the Senior Foreign Service who is leaving while the department is still under a hiring freeze and many top roles have not been filled.

There has been growing frustration among the diplomatic ranks over the Trump administration’s handling of foreign policy and Secretary of State Rex Tillerson’s “redesign” plan of the department. Spokesperson Heather Nauert said in a statement Yun was retiring for “personal reasons and the Secretary has reluctantly accepted his decision and wished him well.” More here.

Meanwhile….as more sanctions have been applied to North Korea, the Trump administration’s biggest national security challenge, the U.S. Treasury sanctioned one person, 27 companies and 28 ships, according to a statement on the U.S. Treasury Department’s website.

The United States also proposed a list of entities to be blacklisted under separate U.N. sanctions, a move “aimed at shutting down North Korea’s illicit maritime smuggling activities to obtain oil and sell coal.”

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UNITED NATIONS — North Korea has been shipping supplies to the Syrian government that could be used in the production of chemical weapons, United Nations experts contend.

The evidence of a North Korean connection comes as the United States and other countries have accused the Syrian government of using chemical weapons on civilians, including recent attacks on civilians in the Damascus suburb of eastern Ghouta using what appears to have been chlorine gas.

The supplies from North Korea include acid-resistant tiles, valves and thermometers, according to a report by United Nations investigators. North Korean missile technicians have also been spotted working at known chemical weapons and missile facilities inside Syria, according to the report, which was written by a panel of experts who looked at North Korea’s compliance with United Nations sanctions.

The report highlights the potential danger posed by any such trade between Syria and North Korea, which could allow Syria to maintain its chemical weapons while also providing North Korea with cash for its nuclear and missile programs.

The possible chemical weapons components were part of at least 40 previously unreported shipments by North Korea to Syria between 2012 and 2017 of prohibited ballistic missile parts and materials that could be used for both military and civilian purposes, according to the report, which has not been publicly released but which was reviewed by The New York Times.

The eight experts who make up the panel all come from different countries and possess specific expertise in areas like weapons of mass destruction, maritime transport and customs controls. Since 2010 the panel has had a mandate from the Security Council to investigate possible sanctions violations by North Korea and present its findings in an annual report.

Though experts who viewed the report said the evidence it cited did not prove definitively that there was current, continuing collaboration between North Korea and Syria on chemical weapons, they said it did provide the most detailed account to date of efforts to circumvent sanctions intended to curtail the military advancement of both countries.

William Newcomb, who was chairman of the United Nations panel of experts on North Korea from 2011 to 2014, called the report “an important breakthrough.”

Since the start of the Syrian civil war in 2011, there have been suspicions that North Korea was providing equipment and expertise to maintain the chemical weapons program of Syria’s president, Bashar al-Assad. Those suspicions were not assuaged when in 2013 Syria signed onto the Chemical Weapons Convention and claimed to give up its chemical weapons stocks.

“We knew stuff was going on,” Mr. Newcomb said. “We really wanted to up the game on chemical weapons programs, and we just weren’t able to get what we needed to do so.”

The report, which is more than 200 pages long, includes copies of contracts between North Korean and Syrian companies as well as bills of lading indicating the types of materials shipped. Much information was provided by unidentified United Nations member states. More here.

Money Approved in 2016 to Counter Russian Disinformation

Posted on February 27, 2018February 27, 2018 by Denise Simon

Government does move slowly, in some cases if at all at tackling specific issues. With the cheap but effective disinformation campaign launched by Russia via the Internet Research Agency during the U.S. election season, the Mueller operation continues including the indictment of several Russian operatives.

A little factoid which has not been covered by media, much less how the visa got approved is curious, but a former IRA supervisor from Russia has moved to Bellevue, Washington. She is running a blog…ah what? This suspected ex-troll factory manager talked of filing for a Social Security Number (SSN). Burdonova declined to comment to TV Rain about her reasons for the move to the U.S. and denied having worked for the Internet Research Agency. The IRA, since at least 2014, worked to “interfere with the U.S political system” in part by supporting Donald Trump and “disparaging” Hillary Clinton.

The organization used social media advertising to spread misinformation and even staged political rallies in the U.S., the indictment alleged. Officials from Facebook, Twitter and Google have admitted their platforms were abused. More here from Newsweek.

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So, between the U.S. State Department and the Pentagon, $40 million has been allocated to the Global Engagement Center to counter the Russian disinformation operation and China or other rogue nations are not exempt from the soon to be American response.

The State Department describes it this way:

The work of the GEC is focused around four core areas: science and technology, interagency engagement, partner engagement, and content production.

Science & Technology: The GEC’s Science & Technology team is charged with enabling the U.S. government and its partners to increase the reach and effectiveness of their communications. The team conducts research on target audiences and utilizes data science techniques to measure the effectiveness of our efforts. Among other techniques, the Science & Technology team performs A/B testing and multivariate analysis to measure the effectiveness of our content distribution. The GEC utilizes hypothesis-driven experimentation and applies a “create-measure-learn” approach to its activities to maximize effectiveness.

Interagency Engagement: The GEC liaises regularly across the interagency and coordinates closely with the relevant national security departments and agencies to identify efficiencies and opportunities in the messaging and partnership space. The GEC’s staff includes detailees from throughout the interagency, including the Department of Defense, Intelligence Community, United States Agency for International Development, and Broadcasting Board of Governors.

Partner Engagement: One of the GEC’s overarching strategies is to identify, cultivate, and expand a global network of partners whose voices resonate with individuals most vulnerable to harmful propaganda. These partners work tirelessly to drive a wedge between susceptible audiences and those nations, groups, and terrorists seeking to influence them. The GEC conducts on-the-ground training sessions to enable these partners to develop their own content and disseminate it through their distribution networks. The GEC also leverages rigorous research and data science to improve tactics and techniques and inspire innovation.

Content Production: The GEC and its partners have established programming across multiple platforms, including social media, satellite television, radio, film, and print. This programming is conducted in various languages, including Arabic, Urdu, Somali, and French. These platforms allow the U.S. government and its partners to inject factual content about terrorist organizations into the information space to counter recruitment and radicalization to violence. They also allow us to develop and disseminate messaging on effective themes, such as exposing ISIS’s financial and governance failures; its violence against women, children, and religious minorities; and its ongoing territorial losses.

The GEC is currently led by Acting Coordinator Daniel Kimmage.

Congress had mandated the initiative to counter propaganda and disinformation after Russia’s meddling in the 2016 US election. Lawmakers and career foreign service officers were deeply critical when Tillerson didn’t move to use any of the funding, and cited his inaction as another example of the agency’s dysfunction.

A similar operation was allegedly applied to counter Islamic State Islamic propaganda and sophisticated media messaging. Measuring effectiveness is still in question.

China is Bullying India and Australia over Maldives for Silk Road

Posted on February 20, 2018February 20, 2018 by Denise Simon

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China is bullying India, Australia and the United States to change the balance of power globally. Anyone paying attention?

Maldives crisis: China sends a naval task force to muscle India, Australia out of power game

CHINA is muscling its way into Australia’s backyard. With an island paradise deep in crisis, the superpower sees a chance.

CHINESE warships have entered the Indian Ocean, marking a significant shift in regional power. They’re there to keep India away from Beijing’s interests in the strife-torn Maldive Islands.

And their presence has implications for Australia.

Naval posturing is nothing new. Gunboat diplomacy has been a major player in great power games of thrones for centuries.

But it is odd for it to be played out so close to home.

A scattering of pristine coral islands in the Indian Ocean is becoming the next flash point between New Delhi and Beijing.

The Maldives islands are in the throes of a constitutional crisis.

The little democracy has traditionally been part of India’s “sphere of influence”. And the eastern Indian Ocean is, of course, of significant strategic importance to Australia.

But recently a new kid has arrived on the block.

And now Beijing’s grown enough confidence to let its presence be felt in the area’s affairs.

A naval force of at least one modern destroyer, a frigate, an amphibious assault ship and a support tanker entered the Indian Ocean last week. It is believed destined to linger off the scenic scatterings of coral, sand and palm trees.

International affairs analysts believe they’re there to stop India from intervening.

Beijing, after all, has big plans for these little islands. And it doesn’t want the locals getting in the way.

Blue skies. White sand. Clear water. The international tourist resorts of the Maldives have been sidelined by the archipelago’s strategic importance. Picture: AFPSource:AFP

TROUBLE IN PARADISE

These islands are unlikely to appear on anyone’s radar — unless you’re after an idyllic island paradise getaway.

But the Maldives have suddenly become the centre of a struggle for international influence.

It’s in the grip of a constitutional crisis.

Opposition leader Mohamed Nasheed recently dared to state that China was “buying up the Maldives” through President Abdulla Yameen. He highlighted the tiny nation was massively in debt to Beijing, and faced seizure of public assets — such as ports — to help pay it back.

It wasn’t long after this Yameen had key opposition figures arbitrarily arrested.

Then Yameen sprung a state of emergency on his people on February 5. It came as the Supreme Court ordered the opposition leaders be released as their arrests had been politically motivated.

So Yameen sent his security forces to arrest the Supreme Court’s judges.

Maldivian police detain a protester demanding the release of political prisoners during a protest in Male, Maldives. Picture: APSource:AP

This has Beijing bothered. It has invested big in a major port project there.

But it’s not the money it’s worried about.

Nor is it the potential collapse of a fragile democracy.

It has implications for its grand ‘One Belt, One Road’ infrastructure campaign. This is intended to vastly expand China’s economic network — and influence — through Asia, the Middle East and into Europe.

“Although traditionally within India’s strategic sphere, in recent years the Maldives has become unstable, impoverished and increasingly desperate,” says the Lowy Institute’s Dr David Brewster.

“Indeed, much of the nation could soon disappear beneath rising sea levels. We may soon see China’s ‘magical island-building ship’ pay a visit to the Indian Ocean.”

India has always been a roadblock in these plans. But now Beijing’s bypass via the Maldives may be in trouble.

Which is why it wants to New Delhi to keep out.

A screen capture of Chinese media footage showing the naval task force currently operating in the eastern Indian Ocean. It includes an amphibious assault ship, a guided missile destroyer and frigate, and a supply ship. Picture: CCTV7Source:Supplied

BELT AND ROAD AMBITIONS

Every day, more than 40 million barrels of oil passes through the strategic “chokepoints” at either end of the Indian 0cean. This includes the Straits of Hormuz, the Gulf of Aden and the Malacca Strait.

All pass through the waters between the Maldives and Ceylon, to India’s south.

It’s a vital arterial supply line. Not least of all to Beijing.

Chinese media is boasting about its new naval presence in the Indian Ocean. It’s been proudly displaying photos and video of its modern ships refuelling and reprovisioning at sea on a mission that is certainly a long way from home.

It’s by no means the first time a Chinese task force has entered the Indian Ocean.

This time things may be different.

The Australian Strategic Policy Institute says Beijing’s infrastructure activity is part of a determined strategy to extend its influence across the Indian Ocean — at the expense of India.

“India has long been concerned about China’s growing maritime interest in the Indian Ocean region,” says ASPI executive director Peter Jennings. “Over the last decade the PLA-Navy has transited through the region many times to participate in UN and EU backed counter-piracy missions off the Horn of Africa. China has established its first overseas military base at Djibouti and is using the ‘One Belt One Road’ strategy to build extensive port infrastructure in Pakistan and Sri Lanka.”

In that context, the timing of this task force’s arrival in the eastern Indian Ocean is likely to be significant.

A Chinese Type 052D guided missile destroyer tests its antimissile gatling gun during a recent exercise. One of these potent warships is among Beijing’s task force in the eastern Indian Ocean. Picture: XinhuaSource:Supplied

“Sending warships to operate off the Maldives is a new and concerning development, because it shows that China is trying to exercise influence over a small state more usually within India’s strategic view. New Delhi will read this as a worrying move. It will intensify strategic competition and increase mistrust between China and India.”

Some international observers had been expecting New Delhi to send its own task force to exert influence over the tiny islands’ fate. Instead, it has taken a hands-off approach through an appeal to the United Nations. It wants help to help pressure Yameen into restoring democratic values.

So Beijing has stepped into the power vacuum with a task force of its own.

But does India have a strong enough presence to keep Beijing out of its own backyard?

The presence of four modern Chinese warships near the Maldive Islands has significant implications for the balance of power in the Indian Ocean. Picture: CCTV7Source:Supplied

OPTIONS OPEN

The chances of any clash between India and China are very low.

But the true impact of the Beijing’s warships is being felt in the corridors and back rooms of power throughout the region.

The warships give Beijing options. And status.

If things take a sudden turn for the worse in the Maldives, it can present itself as an international hero by quickly landing its troops in a “humanitarian intervention”.

It could lift its own citizens out of trouble — and those of other nations. It could impose in a “peace keeping” force to support the local political entity of its choice.

That such acts would irreparably damage India’s influence and status is an unspoken benefit.

It would also cement Beijing’s intimidating presence in what is a key “chokepoint” for its “belt” project.

The under-construction China Maldives Friendship Bridge is pictured near the city of Male. The international community has censured Maldives President Abdulla Yameen for imposing a state of emergency. Picture: AFPSource:AFP

If, however, the Maldives crisis does not worsen, the mere presence of Chinese warships acts as a deterrent to Indian intervention. It’s also a neon-sign of Beijing’s determination to wield its new-found influence worldwide.

The force Beijing appears to have deployed may seem small. But it is capable.

The Type 052D guided missile destroyer (Luyang-III class) is among its most modern combat ships. With a crew of 280 and weighing some 7500 tons, it carries a helicopter, land-attack cruise missiles, surface-to-air missiles, surface-to-surface missiles and anti-submarine missiles.

The Type 054A frigate (Jiangkai II) is one of more than 21 of these modern frigates deployed by Beijing. It is a stealthy design, intended primarily to supplement the air defence of a task force, though it also has some anti-surface and submarine capability.

The Type 071 amphibious transport dock is ideal for humanitarian relief — and landing forces of troops. It can carry a variety of amphibious assault vehicles and landing craft, along with two helicopters. But it also operates hospital and command-and-control facilities. It has accommodation for up to 800 troops.

It’s also backed-up by China’s 28th Anti-Piracy Task Force out of Africa. It’s believed to have wandered closer to the middle of the Indian Ocean in recent weeks.

Indian Navy personnel stand on the INS Vikramaditya, a modified Kiev-class aircraft carrier, similar to the aircraft carrier Liaoning operated by China. Picture: AFPSource:AFP

DEEP IMPLICATIONS

India has not been sitting idle. It has been modernising its own navy. Like China, it is one of just a few nations operating fixed-wing aircraft carriers.

Neither is currently operating near the Maldives.

But New Delhi has also just signed a deal with the Seychelles islands to establish a mid-Indian Ocean naval facility of its own.

“Despite these dramatic developments, the shape and future purpose of China’s naval presence in the Indian Ocean remains an open question,” Dr Brewster says. “We should not automatically assume that the Chinese navy intends to challenge the US Fifth Fleet, at least in the short term. China will remain at a big geographic disadvantage in the Indian Ocean.”

This is because it does not have the complex and extensive supply network that the other major international influence in the region — the US 5th Fleet — has.

But it’s working on it.

Royal Australian Navy ships HMAS Adelaide, Toowoomba and Darwin in formation as part of the Joint Task Group for Indo-Pacific Endeavour 2017. Picture: DefenceSource:Supplied

There’s also bound to be pushback.

“China’s move may reinforce a growing Indian interest to co-operate more closely with Australia,” Mr Jennings says.

“The idea of quadrilateral co-operation between India, Australia, Japan and the US — which was abandoned a decade ago because of worries it would be seen to contain China — is now firmly back on the agenda.

“It would be ironic if China’s rather amateurish attempts to build political influence in the Maldives led to enhanced co-operation between the democracies on Indian Ocean security.”

5 Former Venezuelan Officials Charged, Money Laundering/Bribery

Posted on February 20, 2018February 20, 2018 by Denise Simon

5 former government officials from Venezuela charged in Houston federal court with money laundering scheme involving foreign bribery

Criminal complaint is here.

Some of the vendors lived in the United States, the DOJ said, or owned and controlled businesses incorporated and based in the United States.

The defendants allegedly laundered some of the bribe money through real estate transactions and other investments in the U.S.

The indictment alleges two PDVSA vendors sent over $27 million in bribe payments to an account in Switzerland.

De Leon and Villalobos controlled the account.

Some of the money went to another “foreign official” who wasn’t named in the indictment. That’s the basis for the FCPA conspiracy charges against De Leon and Villalobos.

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HOUSTON — Five former government officials from Venezuela were charged Monday for allegedly participating in an international money laundering scheme involving bribes made to corruptly secure energy contracts from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).

Two of the five defendants are also charged with conspiracy to violate the Foreign Corrupt Practices Act (FCPA). U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) investigated this case.

In October 2017, Spanish authorities arrested four of the following defendants on arrest warrants based on a 20-count indictment returned Aug. 23, 2017, in the Southern District of Texas: Luis Carlos De Leon Perez (De Leon), 41, Nervis Gerardo Villalobos Cardenas (Villalobos), 50, Cesar David Rincon Godoy (Cesar Rincon), 50, and Rafael Ernesto Reiter Muñoz (Reiter), 39.

On Feb. 9, Cesar Rincon was extradited from Spain and made his initial appearance Monday in federal court in the Southern District of Texas. De Leon, Villalobos and Reiter remain in Spanish custody pending extradition. A fifth defendant, Alejandro Isturiz Chiesa (Isturiz), 33, remains at large; a warrant remains outstanding for his arrest. All five defendants are citizens of Venezuela. De Leon is also a U.S. citizen.

De Leon, Villalobos, Reiter and Isturiz are each charged with one count of conspiracy to commit money laundering; Cesar Rincon is charged with two counts of conspiracy to commit money laundering. De Leon, Cesar Rincon and Reiter are charged with four counts of money laundering; Villalobos and Isturiz are charged with one and five counts of money laundering, respectively. De Leon and Villalobos are each also charged with one count of conspiracy to violate the FCPA.

“This case is an example of what can be accomplished when international law enforcement agencies work together to thwart complex cross-border crimes,” said Mark Dawson, special agent in charge of HSI Houston. “HSI is committed to upholding the rule of law and investigating those that would participate in illegal practices.”

The indictment alleges the five defendants, all of whom were officials of PDVSA and its subsidiaries or former officials of other Venezuelan government agencies or instrumentalities, were known as the “management team” and wielded significant influence within PDVSA.

According to the indictment, the management team conspired with each other and others to solicit several PDVSA vendors, including vendors who were U.S. residents and who owned and controlled businesses incorporated and based in the United States, for bribes and kickbacks in exchange for providing assistance to those vendors in connection with their PDVSA business.

The indictment further alleges the co-conspirators then laundered the proceeds of the bribery scheme through a series of complex international financial transactions including to, from or through U.S. bank accounts. In some instances, they allegedly laundered the bribe proceeds in the form of real estate transactions and other investments in the United States.

The indictment also reads that the following two PDVSA vendors sent more than $27 million in bribe payments to an account in Switzerland for which De Leon was a beneficial owner, and De Leon and Villalobos were authorized signers: Roberto Enrique Rincon Fernandez (Roberto Rincon), 57, of The Woodlands, Texas, and Abraham Jose Shiera Bastidas (Shiera), 54, of Coral Gables, Florida. The indictment alleges those funds were later transferred to other accounts in Switzerland. Both Roberto Rincon and Shiera previously pleaded guilty to FCPA charges in connection with a scheme to bribe PDVSA officials. According to admissions made in connection with their pleas, Roberto Rincon and Shiera paid bribes and provided other things of value to PDVSA officials to ensure that their companies were placed on PDVSA bidding panels and ensure that they were given payment priority so that they would get paid ahead of other PDVSA vendors with outstanding invoices. Roberto Rincon and Shiera are awaiting sentencing.

On Feb. 12, the indictment was unsealed. Fifteen individuals were charged, and 10 have pleaded guilty as part of a larger and ongoing investigation by the U.S. government into bribery at PDVSA.

HSI Houston is conducting the ongoing investigation with assistance from HSI Boston, HSI Madrid and the IRS Criminal Investigation.

The Criminal Division’s Office of International Affairs, the Swiss Federal Office of Justice and the Spanish Guardia Civil also provided assistance.