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Trump Dossier Courtesy of Marc Elias and Perkins and Coie

Oh Hillary…do tell…

Marc Elias is a partner in the law firm Perkins and Coie. Beyond that he was the general counsel for the Hillary presidential campaign. Previously to that, he did the same for the John Kerry presidential campaign….sheesh….oh yeah…he did the same for Al Franken.

Keep a large supply of popcorn handy….week by week this has the makings of good theater. Opposition research on candidates is nothing new, but this creates a new definition to research, to Clinton and fraud.

What is remarkable is that the Hillary campaign and the DNC punked the intelligence agencies that spent months and huge investigative resources on tracking down people and facts in the dossier. Further, while parts of the dossier are accurate and others not at all, it also proves that someone had a direct point of contact with people inside the Kremlin.

Let that sink in….

Related reading: Fusion GPS partners plead Fifth before House Intel

According to The Hill, the FBI, “obtained an eyewitness account -backed by documents- indicating Russian nuclear officials had routed millions of dollars to the U.S. designed to benefit former President Bill Clinton’s charitable foundation… during the time Secretary of State Hillary Clinton served on a government body that provided a favorable decision to Moscow.”

***

Clinton campaign, DNC paid for research that led to Russia dossier

WaPo: The Hillary Clinton campaign and the Democratic National Committee helped fund research that resulted in a now-famous dossier containing allegations about President Trump’s connections to Russia and possible coordination between his campaign and the Kremlin, people familiar with the matter said.

Marc E. Elias, a lawyer representing the Clinton campaign and the DNC, retained Fusion GPS, a Washington firm, to conduct the research.

Marc E. Elias of Perkins Coie represented the Clinton campaign and the Democratic National Committee. (Matt McClain/The Washington Post)

After that, Fusion GPS hired dossier author Christopher Steele, a former British intelligence officer with ties to the FBI and the U.S. intelligence community, according to those people, who spoke on the condition of anonymity.

Elias and his law firm, Perkins Coie, retained the firm in April 2016 on behalf of the Clinton campaign and the DNC. Before that agreement, Fusion GPS’s research into Trump was funded by a still unknown Republican client during the GOP primary.

The Clinton campaign and the DNC, through the law firm, continued to fund Fusion GPS’s research through the end of October 2016, days before Election Day.

Fusion GPS gave Steele’s reports and other research documents to Elias, the people familiar with the matter said. It is unclear how or how much of that information was shared with the campaign and DNC, and who in those organizations was aware of the roles of Fusion GPS and Steele. One person close to the matter said the campaign and the DNC were not informed of Fusion GPS’s role by the law firm.

The dossier has become a lightning rod amid the intensifying investigations into the Trump campaign’s possible connections to Russia. Some congressional Republican leaders have spent months trying to discredit Fusion GPS and Steele, and tried to determine the identity of the Democrat or organization that paid for it.

Trump tweeted as recently as Saturday that the Justice Department and FBI should “immediately release who paid for it.”

Elias and Fusion GPS declined to comment on the arrangement. Spokespersons for the Clinton campaign and the DNC had no immediate comment.

Some of the details are included in an Oct. 24 letter sent by Perkins Coie to a lawyer representing Fusion GPS, telling the research firm that it was released from a client-confidentiality obligation. The letter was prompted by a legal fight over a subpoena for Fusion GPS’s bank records.

People involved in the matter said that they would not disclose the dollar amounts paid to FusionGPS, but said that the campaign and the DNC shared the cost.

Steele previously worked in Russia for British intelligence. The dossier is a compilation of reports he prepared for Fusion. The dossier alleged that the Russian government collected compromising information about Trump and the Kremlin was engaged in an active effort to assist his campaign for president.

Washington Post reporters Tom Hamburger and Rosalind S. Helderman explain the story behind a controversial dossier on President Trump. (Jason Aldag,Sarah Parnass/The Washington Post)

U.S. intelligence agencies later released a public assessment which asserted that Russia intervened in the 2016 election to aid Trump. The FBI has been investigating whether any Trump associates helped the Russians in that effort.

Trump has adamantly denied the allegations in the dossier and has dismissed the FBI probe as a witch hunt.

Fusion GPS’s work researching Trump began during the Republican presidential primaries, when the GOP donor paid for the firm to investigate the real estate tycoon’s background.

Fusion GPS did not start off looking at Trump’s Russia ties, but quickly realized that those relationships were extensive, according to the people familiar with the matter.

When the Republican donor stopped paying for the research, Elias, acting on behalf of the Clinton campaign and the DNC, agreed to pay for the work to continue.

The Democrats paid for research, including by Fusion GPS, because of concerns that little was known about Trump and his business interests, according to the people familiar with the matter.

These people said that it is standard practice for political campaigns to use law firms to hire outside researchers to ensure their work is protected by attorney-client and work-product privileges.

The Clinton campaign paid Perkins Coie $5.6 million in legal fees from June 2015 to December 2016, according to campaign finance records, and the DNC paid the firm $3.6 million in “legal and compliance consulting’’ since Nov. 2015 — though it’s impossible to tell from the filings how much of that work was for other legal matters and how much of it related to Fusion GPS.

At no point, these people said, did the Clinton campaign or the DNC direct Steele’s activities. They described him as a Fusion GPS subcontractor.

Some of Steele’s allegations began circulating in Washington in the summer of 2016 as the FBI launched its counterintelligence investigation into possible connections between Trump associates and the Kremlin. Around that time, Steele shared some of his findings with the FBI.

After the election, the FBI agreed to pay Steele to continue gathering intelligence about Trump and Russia, but the bureau pulled out of the arrangement after Steele was publicly identified in news reports.

The dossier was published by BuzzFeed News in January. Fusion GPS has said in court filings that it did not give BuzzFeed the document.

Officials have said that the FBI has confirmed some of the information in the dossier. Other details, including the most sensational accusations, have yet to be verified and may never be.

Current and former U.S. intelligence officials said that Steele was respected by the FBI and the State Department for earlier work he performed on a global corruption probe.

In early January, then-FBI Director James B. Comey presented a two-page summary of Steele’s dossier to President Barack Obama and President-elect Trump.

In May, Trump fired Comey, which led to the appointment of Robert S. Mueller III as special counsel investigating the Trump-Russia matter.

Congressional Republicans have tried to force Fusion GPS to identify the Democrat or group behind Steele’s work, but the firm has said that it would not do so, citing confidentiality agreements with its clients.

Last week, Fusion GPS executives invoked their constitutional right not to answer questions from the House Intelligence Committee. The firm’s founder, Glenn Simpson, had previously given a 10-hour interview to the Senate Judiciary Committee.

Over objections from Democrats, the Republican leader of the House Intelligence Committee, Rep. Devin Nunes (Calif.), subpoenaed Fusion GPS’s bank records to try to identify the mystery client.

Fusion GPS has been fighting the release of its bank records. A judge on Tuesday extended a deadline for Fusion GPS’s bank to respond to the subpoena until Friday while the company attempts to negotiate a resolution with Nunes.

 

UN/Harvard Comprehensive WMD Programs in N Korea/ISIS

Primer:

A North Korean mining firm, reputed to be a front for Pyongyang’s weapons development programs, attempted to ship materiel to Syrian officials tied to the country’s chemical weapons program, according to a confidential United Nations assessment of international sanctions against the North.

Details of the U.N. findings, first reported by Reuters, found officials from Korea Mining Development Trading Corporation {KOMID) had sent a pair of shipments of unknown contents to members of Syria’s Scientific Studies and Research Centre or SSRC. The Syrian government organization has been responsible for developing chemical and biological weapons for regime in Damascus since the 1970’s.

The shipments never arrived in Syria after being intercepted by international authorities from U.N. partner nations, Reuters reports. “Two member states interdicted shipments destined for Syria. Another member state informed the panel that it had reasons to believe that the goods were part of a KOMID contract with Syria,” the U.N. review states.

KOMID has repeatedly trafficked in materials associated with ballistic missile development and other conventional arms programs, and was blacklisted by the U.N. security council as a result of those activities, Reuters reports.

As a result, the U.N. “is investigating reported prohibited chemical, ballistic missile and conventional arms cooperation between Syria and [North Korea],” the report states. More here.

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Quoting the South Korean Defense Ministry, it said: ‘North Korea has 13 types of biological weapons agents which it can weaponize within ten days, and anthrax and smallpox are the likely agents it would deploy.’

***

Harvard produced a report with the summary in part that reads:

Amidst the growing threat of North Korea’s nuclear program, the assas-
sination of Kim Jong-Un’s half-brother via VX nerve agent in February
2017 brought renewed interest in North Korea’s other weapons of
mass destruction (WMD) programs—chemical and biological weap-
ons. If used on a large scale, these weapons can cause not only tens of
thousands of deaths, but also create panic and paralyze societies. Nev-
ertheless, the vividness of the nuclear threat has overshadowed other
weapons programs, limiting the attention and policy input that they
deserve. This paper focuses on North Korea’s biological weapons (BW).
Accurately assessing the threat from North Korea’s biological weapons
is challenging. Whereas North Korea has publicly declared its will to
become a nuclear power many times, it has been less overt about its
intention or capability for biological weapons. BW capabilities are
inherently hard to detect and measure. While nuclear programs can
be monitored by the number of nuclear tests and the success of missile
tests, weaponizing and cultivating pathogens can stay invisible behind
closed doors. Moreover, equipment used for BW production are often
dual-use for agriculture, making external monitoring and verification
virtually impossible. Limited information on North Korea’s BW pro-
gram leads to a low threat perception that may undermine preparation
and response efforts. The full 46 page report is here.

A German newspaper reported last week that at least one European intelligence agency has already warned that the Islamic State is exploring the use of chemicals for attacks in Europe. Such an eventuality would be a radical departure from prior attacks by the Islamic State in the West. In the past, the militant group has shown a strong preference for low-tech means of dispensing violence, such as firearms, vehicles and knives. But it has utilized chemical substances in Iraq and Syria, and its technical experts have amassed significant knowledge about weaponized chemicals.

Last week, several European and American counter-terrorism experts participated in a bioterrorism preparedness exercise in Berlin. Codenamed WUNDERBAUM, the exercise was one of several anti-terrorism drills that have taken place in the German capital this year alone. But last week’s drill was the first with an exclusive focus on preparing for a bioterrorist attack. German authorities insisted that the drill was not sparked by concrete intelligence of a pending biological or chemical attack. But the Berlin-based national newspaper Die Welt claimed on Friday that it had information about at least one such warning by a European intelligence agency. The paper did not name the agency, but said that “a foreign intelligence agency” had warned European security authorities of a possible terrorist attack by the Islamic State using chemical weapons. According to Die Welt, the warning was “explicit” and cautioned that the Sunni militant group may be preparing to use improvised bombs utilizing chemicals, including toxic gasses. The warning was communicated to European intelligence agencies, including Germany’s said Die Welt.

How likely is such a scenario? Terrorist groups tend to be conservative in their use of lethal technologies. They typically opt for time-tested methods using explosives or firearms, because these have a higher of success in comparison to more sophisticated, hi-tech weapons. The latter are also more expensive to build and require scientific and technical capabilities that are not typically available to terrorist organizations. Militants are usually strapped for cash, and are not science-savvy, so exceptions to this general trend are rare. But the Islamic State is different. Ever since it made its eventful appearance in 2013, the group has experimented with a variety of chemicals, including nerve agents. It is known that it initiated a modest chemical weapons program, headed by Iraqi engineers who were trained under Iraq’s late ruler, Saddam Hussein. One of them, Abu Malik, was killed in an American airstrike in early 2015. Another, Sleiman Daoud al-Afari, who headed the Islamic State’s chemical weapons program, was captured by US Special Forces in northern Iraq in March of last year.

The Islamic State’s rapid loss of territory in the past year has delivered serious blows to the group’s military infrastructure. Its chemical weapons program, which was targeted early on by the US, Iran and other belligerents, is now almost certainly defunct. But many of its engineers and technical experts are still at large, as are those who were trained by them during the group’s heyday in Iraq and Syria. Despite its continuing retreat, the Islamic State is still capable of employing chemicals that are relatively easy to procure, such as chlorine, hydrogen sulfide, or even various fertilizers, to construct explosives or nerve agents. Last summer, members of a terrorist cell with connections to the Islamic State were arrested in Sydney, Australia. By the time they were arrested, they had already procured significant quantities of hydrogen sulfide and had even tested the chemical, in an apparent preparation for a large-scale attack.

The Australian case shows that the Islamic State is not averse to the tactical use of chemical weapons in terrorist attacks. As the militant group’s self-proclaimed caliphate is disintegrating, and its leaders feel like they have nothing left to lose, the deployment of unconventional terrorist technologies should not be excluded as a tactical option for the organization. Western counter-terrorism officials should actively and immediately prepare for such an eventuality.

***

FBI Watched the Spy Ring Inside the Hillary Inner Circle

Ah, she was posing as an accountant..

FBI hidden camera surveillance videos of the spies’ operations give a fascinating look into Russian spy tradecraft as employed by Chapman and the other Russian agents. The videos show, among other things, the Russian infiltrators hiding messages under bridges, secretly trading information, money and contact information via “brush passes,” and digging for buried payoff money in the woods.

While Chapman and her fellow spies seemed to live routine, middle-class lives, the videos reveal both traditional and hi-tech spy techniques, including Chapman sending encrypted messages to her handler with a specially equipped laptop. In one of the FBI surveillance tapes, Chapman is in a department store, transmitting messages to her contact standing outside the store.

“We were able to capture wirelessly the communications between her and her handler,” Figliuzzi said. “There were six locations throughout New York,” that Chapman used, he said. “She transmits and receives messages from the official who is in close proximity but not anywhere near visibly close to her … she is transmitting encrypted code that the FBI was able to break.” More here.

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The 97 page criminal complaint is here.

As Hillary Clinton was beginning her job as President Obama’s chief diplomat, federal agents observed as multiple arms of Vladimir Putin’s machine unleashed an influence campaign designed to win access to the new secretary of State, her husband Bill Clinton and members of their inner circle, according to interviews and once-sealed FBI records.

Some of the activities FBI agents gathered evidence about in 2009 and 2010 were covert and illegal.

A female Russian spy posing as an American accountant, for instance, used a false identity to burrow her way into the employ of a major Democratic donor in hopes of gaining intelligence on Hillary Clinton’s department, records show. The spy was arrested and deported as she moved closer to getting inside the secretary’s department, agents said.

Other activities were perfectly legal and sitting in plain view, such as when a subsidiary of Russia’s state-controlled nuclear energy company hired a Washington firm to lobby the Obama administration. At the time it was hired, the firm was providing hundreds of thousands of dollars a year in pro bono support to Bill Clinton’s global charitable initiative, and it legally helped the Russian company secure federal decisions that led to billions in new U.S. commercial nuclear business, records show.

Agents were surprised by the timing and size of a $500,000 check that a Kremlin-linked bank provided Bill Clinton with for a single speech in the summer of 2010. The payday came just weeks after Hillary Clinton helped arrange for American executives to travel to Moscow to support Putin’s efforts to build his own country’s version of Silicon Valley, agents said.

There is no evidence in any of the public records that the FBI believed that the Clintons or anyone close to them did anything illegal. But there’s definitive evidence the Russians were seeking their influence with a specific eye on the State Department.

“There is not one shred of doubt from the evidence that we had that the Russians had set their sights on Hillary Clinton’s circle, because she was the quarterback of the Obama-Russian reset strategy and the assumed successor to Obama as president,” said a source familiar with the FBI’s evidence at the time, speaking only on condition of anonymity, because he was not authorized to speak to the news media.

That source pointed to an October 2009 communication intercepted by the FBI in which Russian handlers instructed two of their spies specifically to gather nonpublic information on the State Department.

“Send more info on current international affairs vital for R., highlight US approach,” part of the message to the spies read, using the country’s first initial to refer to Russia. “… Try to single out tidbits unknown publicly but revealed in private by sources closer to State department, government, major think tanks.”

The Clintons, by that time, had set up several new vehicles that included a multimillion dollar speech-making business, the family foundation and a global charitable initiative, all which proved attractive to the Russians as Hillary Clinton took over State.

“In the end, some of this just comes down to what it always does in Washington: donations, lobbying, contracts and influence – even for Russia,” said Frank Figliuzzi, the former FBI assistant director for counterintelligence.

The sleeper ring

Figliuzzi supervised the post-arrest declassification and release of records from a 10-year operation that unmasked a major Russian spy ring in 2010. It was one of the most important U.S. counterintelligence victories against Russia in history, and famous for nabbing the glamorous spy-turned-model Anna Chapman.

While Chapman dominated the headlines surrounding that spy ring, another Russian woman posing as a mundane New Jersey accountant named Cynthia Murphy was closing in on accessing Secretary Clinton’s department, according to records and interviews.

For most of the 10 years, the ring of Russian spies that included Chapman and Murray acted as sleepers, spending a “great deal of time collecting information and passing it on” to their handlers inside Russia’s SVR spy agency, FBI records state.

Murphy, living with her husband and kids in the New Jersey suburbs of New York City, reported a major breakthrough in February 2009 in an electronic message sent to her handlers: she had scored access to a major Democrat, FBI records state.

“Murphy had several work-related personal meetings with [a prominent New York-based financier, name omitted] and was assigned his account,” one FBI record from the case read. “The message accurately described the financier as  ‘prominent in politics,’ ‘an active fund-raiser’ for [a major political party, name omitted] and a ‘personal friend’ of [a current Cabinet official, name redacted].”

Multiple current and former officials confirmed to The Hill that the Cabinet officer was Hillary Clinton, the fundraiser was New York financier Alan Patricof and the political party was the Democratic National Committee. None of the Americans were ever suspected of illegalities, but the episode made clear the Russian spies were stepping up their operations against the new administration after years of working in a “sleeper” capacity, officials said.

Patricof did not return a call to his office Friday seeking comment. But in 2010 he told The Washington Post after the spy case broke he believed he had been a victim of the spy ring, saying Murphy had worked for him but that he only talked accounting and not government or politics with her.

“It’s just staggering,” he told the Post about the idea of being targeted by Russia. “It’s off the charts.”

Clinton spokesman Nick Merrill declined Saturday to say if the secretary was ever alerted or briefed to the Russian spy effort, instead suggesting that any focus on the spy case was a partisan effort to distract from the controversy around Moscow and President Trump.

“Nothing has changed since the last time this was addressed, including the right’s transparent attempts to distract from their own Russia problems, which are real and a grave threat to our national security,” he wrote in an email to The Hill.

Back in 2010, when the spy story broke, Hillary Clinton’s office issued a statement that there was “no reason to think the Secretary was a target of this spy ring.”

Court documents and agents who worked the case suggest otherwise, saying the Russians were specifically targeting her department and any intelligence they could get on the new administration’s emerging foreign policy.

Trying to get inside State

The FBI documents show exactly what Murphy’s Russian handlers wanted her to get from a Clinton-tied donor she had befriended. “Maybe he can provide Murphy with remarks re US foreign policy, roumors (sic) about White House internal kitchen, invite her to major venues,” one FBI document quoted the Russians as saying.

By 2010, the Russian SVR urged Murphy to consider taking a job with a lobbying firm because “this position would expose her to prospective contacts and potential sources in U.S. government,” the FBI affidavit read.

Figliuzzi said it was the FBI’s belief that Murphy wasn’t going to risk taking a job inside the State Department, where the vetting process might unmask her true identity. So she aimed for a private sector job where “she could get next to people who had the jobs who could get the information she wanted from State,” he said.

The retired FBI executive said that by early summer 2010, agents feared Chapman might flee the country and Murphy was getting too close to posing a security concern to Hillary Clinton. As a result, they arrested the entire ring of 10 spies, and quickly expelled them.

“In regards to the woman known as Cynthia Murphy, she was getting close to Alan, and the lobbying job. And we thought this was too close to Hillary Clinton. So when you have the totality of the circumstance, and we were confident we had the whole cell identified, we decided it was time to shut down their operations,” Figliuzzi said.

The FBI announced the arrests on June 28, 2010, a day after they were made.

The ring highlights the long-standing efforts Russia has made to gain access to U.S. officials, which sprouted up well before the last election. But the recent events also illustrate how Russia’s efforts have advanced.

Figliuzzi said they show a “logical evolution or morphing of methodology to exploit social media in a way that is far more effective and potentially damaging” than the spy ring rolled up in 2010.

“We watched a sleeper cell of ten people for ten years that didn’t come close to the impact of a few thousand ads and posts on FB, Twitter, Google and Instagram,” he said.

Bill Clinton’s big check

A day after the arrests of the sleeper ring, another event captured the FBI’s attention.

Thousands of miles away in Russia, former President Clinton collected a $500,000 check for giving a 90-minute speech to Renaissance Capital, a Kremlin-connected bank, then scored a meeting with Putin himself.

The check caught the attention of FBI agents, especially with Hillary Clinton having recently returned from meetings in Russia, and her department working on a variety of issues where Moscow had an interest, records show.

One issue was American approval of the Russian nuclear company Rosatom’s purchase of a Canadian company called Uranium One, which controlled 20 percent of America’s strategic uranium reserves. State was one of more than a dozen federal agencies that needed to weigh in, and a Clinton deputy was handling the matter.

The second issue was the Russian company TENEX’s desire to score a new raft of commercial nuclear sales to U.S. companies. TENEX for years was selling uranium recycled from old Soviet warheads to the United States. But that deal was coming to an end and now it needed a new U.S. market.

And the third was a promise Secretary Clinton herself made to Russian leaders to round up support in America’s Silicon Valley for then-Russian President Dmitry Medvedev’s dream for a new high-tech hub outside Moscow known as Skolkovo. A team of venture capitalists had been dispatched to Moscow just a few weeks before Bill Clinton landed his payday, records show.

“We have 40,000 Russians living in Silicon Valley in California. We would be thrilled if 40,000 Russians were working in whatever the Russian equivalent of Silicon Valley is, providing global economic competition, taking the internet and technology to the next level,” Hillary Clinton said at the time, according to a State Department transcript. She added that the business executives she dispatched to Putin’s homeland had Twittered their way through Russia.

The bank that paid Bill Clinton was promoting the Uranium One deal’s stock. And the former president entertained – though he never followed through with – meeting with two Russian figures who had ties to the nuclear sales and the Silicon Valley deals as well, State Department records show.

Angel Urena, the official spokeswoman for the former president, told The Hill that Bill Clinton never discussed the issues pending before his wife’s department when he was in Russia and that the money he collected for himself and his charitable efforts never influenced his wife’s decision-making.

Another investigation

Away from Bill Clinton’s check and the breaking news of a spy ring, the FBI had another major investigation underway where the Clinton name was surfacing.

Since 2009, the FBI had an undercover informant gathering evidence of a massive bribery and kickback scheme inside the Russian nuclear energy firm TENEX and its American arm TENAM.

Years later, FBI agents would help the Justice Department bring charges against the Russian nuclear industry’s point man in the United States, TENEX director Vadim Mikerin, as well as a Russian financier and an American trucking executive whose company moved Russian uranium around the United States.

But as the informant gathered evidence of the bribery scheme in early 2010, he began to hear a familiar name crop up in conversations. The Russians kept talking about ways they could win access to or favor with the Clintons, and the informant kept reporting it back to his FBI handlers.

The informant has never been publicly identified, but his lawyer told The Hill on Friday he can shed significant light to Congress on what the Russians were doing to try to win favorable treatment from the Obama administration.

“I can confirm that my client while working undercover for the FBI and in the employ of the Russian energy firm TENEX witnessed numerous, detailed conversations in which Russian actors described their efforts to lobby, influence or ingratiate themselves with the Clintons in hopes of winning favorable uranium decisions from the Obama administration,” attorney Victoria Toensing said.

“Unfortunately, he cannot at the present time disclose the specifics of that evidence he reported to the agents in real time because of an NDA he signed with the bureau. But we are working with Congress to find a means in the future for him to transmit the important information he possesses,” she added.

There are some public records that show what TENEX was trying to do inside the United States.

The Russian firm between 2009 and 2011 hired two Washington consulting firms to help it win Obama administration approval for policies and contracts that opened up billions in new nuclear fuel sales for TENEX, foreign agent registration records show. Those firms were never implicated in any wrongdoing in court records, and were just doing contract work to expand the Russian company’s commercial nuclear sales inside the United States.

The lobbying work was perfectly legal, focusing on agencies like State, Commerce and Energy that supervised the U.S.-Russia nuclear relationship. But once again, a connection to the Clintons emerged.

One of the firms TENEX hired in 2010 was providing hundreds of thousands of dollars a year in support to the Clinton Global Initiative, starting in 2008.

Russia Takes Over Kurds Oil Pipeline, Hillary?

LONDON/MOSCOW (Reuters) – Russia’s biggest oil company, Rosneft (ROSN.MM), has agreed to take control of Iraqi Kurdistan’s main oil pipeline, boosting its investment in the autonomous region to $3.5 billion despite Baghdad’s military action sparked by a Kurdish vote for independence.

The move appears to be part of a strategy by President Vladimir Putin to boost Moscow’s Middle Eastern political and economic influence, which was weakened by the collapse of the Soviet Union.

Rosneft said it would own 60 percent of the pipeline, with current operator KAR Group retaining 40 percent. Sources familiar with the deal said Rosneft’s investment in the project was expected to total about $1.8 billion.

That comes on top of $1.2 billion that the Russian firm, which has struggled to raise Western loans due to U.S. sanctions, lent Kurdistan earlier this year to help fill holes in its budget. Rosneft also agreed to invest another $400 million in five exploration blocks. More here

You remember Rosneft right? That Russian oil conglomerate that donated big dollars to the Clinton Foundation during the Uranium One deal and even the NYT’s reported it.

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(Reuters) – A senior Iranian military commander repeatedly warned Kurdish leaders in northern Iraq to withdraw from the oil city of Kirkuk or face an onslaught by Iraqi forces and allied Iranian-backed fighters, Kurdish officials briefed on the meetings said.

Major-General Qassem Soleimani, commander of foreign operations for Iran’s elite Revolutionary Guards, traveled to Iraq’s Kurdistan region to meet Kurdish leaders at least three times this month before the Baghdad government’s lightning campaign to recapture territory across the north.

The presence of Soleimani on the frontlines highlights Tehran’s heavy sway over policy in Iraq, and comes as Shi’ite Iran seeks to win a proxy war in the Middle East with its regional rival and U.S. ally, Sunni Saudi Arabia.

Soleimani met leaders from the Patriotic Union of Kurdistan (PUK), one of the two main Kurdish political parties in northern Iraq, in the city of Sulaimania the day before Iraqi Prime Minister Haider al-Abadi ordered his forces to advance on Kirkuk, according to a PUK lawmaker briefed on the meeting.

His message was clear: withdraw or risk losing Tehran as a strategic ally.

“Abadi has all the regional powers and the West behind him and nothing will stop him from forcing you to return back to the mountains if he decides so,” the lawmaker quoted Soleimani as telling the PUK leadership.

The Iranian general evoked late Iraqi president Saddam Hussein’s massive attack on a Kurdish rebellion in 1991, when almost the entire Kurdish population fled northern Iraq to the mountains, the PUK lawmaker said.

“Soleimani’s visit … was to give a last-minute chance for the decision-makers not to commit a fatal mistake,” said the lawmaker, who like others interviewed in this story declined to be identified because of the sensitivity of the issue.

Commanders of the Iraqi Kurdish forces, known as the Peshmerga, have accused Iran of orchestrating the Shi’ite-led Iraqi central government’s push into areas under their control, a charge senior Iranian officials have denied.

But Iran has made no secret of its presence in Iraq.

“Tehran’s military help is not a secret anymore. You can find General Soleimani’s pictures in Iraq everywhere,” said an official close to Iranian President Hassan Rouhani.

“Now, beside political issues, Kirkuk’s oil is a very key element for Iran, which is an OPEC member. Control of those oil fields by Iran’s enemies would be disastrous for us. Why should we let them enter the oil market?.”

“THERE WILL BE CONFLICT”

Kirkuk fell to Iraqi government forces on Monday. Their offensive followed a referendum last month in which the semi-autonomous Kurdistan region voted to secede from Iraq against Baghdad’s wishes.

Kurds have sought an independent state for almost a century, after colonial powers divided up the Middle East after the fall of the Ottoman Empire and left Kurdish-populated territory split between Turkey, Iran, Iraq and Syria.

But Iraq’s two main Kurdish parties have been at odds over both the referendum and the approach to the crisis in Kirkuk, which the Kurds consider to be the heart of their homeland.

The PUK, a close ally of Iran, accused its rival, the Kurdistan Democratic Party (KDP), of putting the Kurds at risk of military intervention and isolation by pushing hard for the vote, which won wide approval for independence.

Soleimani has been allied to the PUK for years, but the referendum has drawn him even closer to Kurdish politics and expanded Iran’s reach in Iraq beyond the Baghdad government.

The Iranian general is no stranger to conflicts in Iraq, which fought an eight-year war with Iran in the 1980s. He has often been seen in footage from the frontlines, and Iran has long helped Baghdad to carry out its military strategy through paramilitary Shi’ite militias which it funds and arms.

Before the referendum, Soleimani suggested to Kurdish leaders that holding a vote on secession — which Iran feared would encourage its own Kurdish population to agitate for greater autonomy — would be risky.

“The Iranians were very clear. They have been very clear that there will be conflict, that these territories will be lost,” said one prominent Iraqi Kurdish politician who met Soleimani ahead of the Sept. 25 referendum.

On Oct. 6, barely a week after the vote, Soleimani attended the funeral of PUK leader Jalal Talabani. Again, he wanted to make sure even his closest Kurdish allies understood the dangers of not withdrawing from Kirkuk, officials said.

A senior Iranian diplomat in Iraq and an official in Iran close to Supreme Leader Ayatollah Ali Khamenei’s office said Soleimani met with Kurdish leaders after Talibani’s funeral and urged them to withdraw from Kirkuk and in exchange Tehran would protect their interests.

Soleimani met with one of Talabani’s sons, Bafel, a few days after his father was buried, one of the PUK officials said.

“Soleimani said Abadi should be taken very seriously. You should understand this,” the official said.

An Iranian source in Iraq said Soleimani was in Kirkuk two nights before the Iraqi government offensive for “a couple of hours to give military guidance.” Iraqi intelligence sources said Tehran sent a clear signal to the PUK.

“We understand from our sources on the ground that neighboring Iran played a decisive role in making the PUK chose the right course with Baghdad,” one Iraqi intelligence official told Reuters.

KURDISH DIVISIONS

Tensions over the referendum and Kirkuk have deepened divisions between the two main political parties in northern Iraq. The KDP accused the PUK of betraying the Kurdish cause by capitulating to Iran and striking a deal to withdraw.

“The Talabani clan were behind the offensive on Kirkuk. They asked Qassem (Soleimani) for help and his troops were there on the ground,” said a source close to Massoud Barzani, president of the Kurdistan Regional Government and head of the KDP.

“It is becoming clear that Iran is directing the operations to destroy the KDP.”

The PUK strongly denies this. Talabani’s son Bafel accused the KDP of missing a zero-hour chance to avoid losing Kirkuk by failing to reach a deal over a military base which Iraqi government forces had demanded to take back.

“Unfortunately we reacted too slowly. And we find ourselves where we are today,” Bafel told Reuters.

Two other Kurdish political sources gave a similar account.

Iran and Soleimani offered early assistance to northern Iraq’s Kurds in the fight against Islamic State, a rallying point for the Kurdish community. But after the devastating loss of Kirkuk, Iraqi Kurds have been left disillusioned.

“They (both PUK and KDP leaders) just make decisions on their own and play with people’s lives. In the end, we pay the price,” said pensioner Abdullah Ahmed in Sulaimania.  “This is a disaster for everyone. Everyone was united against Daesh (Islamic State). Now they are back just looking out for themselves.”

 

Anyone From the U.S. Mentioning this to China’s President Xi?

Remarkable site and well on top of this issue, for the summary go here.

Primer:

Out of a list of 57 companies accused by U.N. investigators of aiding North Korea, 43 of them haven’t been sanctioned by Treasury.

One of them is Glocom, a firm also known as Pan Systems Pyongyang Branch, a North Korean company based in Malaysia that investigators say uses a series of front companies and agents to procure components and sell communications systems in violation of U.N. sanctions. Pan Systems and another associated firm, Wonbang Trading Co., are operated by North Korea’s intelligence service, the Reconnaissance General Bureau, the U.N. says. Wonbang has also been one of the largest shippers of North Korea coal and Glocom has been investigated for arms shipments. Glocom, which maintains a website, didn’t respond to repeated requests for comment on the allegations.

Another network cited by the U.N. is a transport firm named Vast Win Trading, whose ship, the Jie Shun, was seized in Egypt last year with 30,000 rocket-propelled grenades. The owner of that ship, Chinese national Sun Sidong, has business ties to a network owned by Chinese national Chi Yupeng through a shared email address in China’s business registry, according to the nonprofit group, C4ADS, that monitors global threats. U.S. Attorneys and Treasury have already targeted the Chi Yupeng network with sanctions and seized funds. Mr. Sun’s network of companies has remained so far untouched. In August, Mr. Sun sold his $1.3 million home in Great Neck, N.Y., for cash, according to his real-estate agent. Mr. Sun couldn’t be reached through his U.S.- and U.K.-based companies or through an individual identified as his lawyer in New York property records.

One of his companies, Dandong Dongyuan Industrial Co. Ltd., is the largest exporter of what’s called “dual use” equipment that can include navigation systems and guidance devices that can be used for ballistic missiles, according to C4ADS. Mr. Sun is also the CEO of Dongyuan Enterprise, a Flushing, N.Y., firm.

U.N. investigators named several banks in North Korea that were established, managed or owned by Chinese firms. First Eastern Bank in Rason, North Korea, owned by Unaforte Hong Kong, was set up to provide loans to Chinese individuals and companies, for example. More here.

DoJ: On Aug. 3, 2016, a U.S. Magistrate Judge Joseph A. Dickson of the District of New Jersey signed a criminal complaint charging Ma Xiaohong (Ma) and her company, Dandong Hongxiang Industrial Development Co. Ltd. (DHID), and three of DHID’s top executives, general manager Zhou Jianshu (Zhou), deputy general manager Hong Jinhua (Hong) and financial manager Luo Chuanxu (Luo), with conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States; violating IEEPA; and conspiracy to launder monetary instruments.

Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on DHID, Ma, Zhou, Hong and Luo for their ties to the government of North Korea’s weapons of mass destruction proliferation efforts.

In addition, the department filed a civil forfeiture action for all funds contained in 25 Chinese bank accounts that allegedly belong to DHID and its front companies. The department has also requested tha the federal court in the District of New Jersey issue a restraining order for all of the funds named in the civil forfeiture action, based upon the allegation that the funds represent property involved in money laundering, which makes them forfeitable to the United States. There are no allegations of wrongdoing by the U.S. correspondent banks or foreign banks that maintain these accounts.

“The charges and forfeiture action announced today allege that defendants in China established and used shell companies around the world, surreptitiously moved money through the United States and violated the sanctions imposed on North Korea in response to, among other things, its nuclear weapons program,” said Assistant Attorney General Caldwell. “The actions reflect our efforts to protect the integrity of the U.S. banking system and hold accountable those who seek to evade U.S. sanctions laws.”

***

For context:

Hong Kong (CNN)Easey Commercial Building is an unassuming mid-rise office tower on Hennessy Road, an artery that runs through Hong Kong’s busy Wan Chai district. The structure sits among scenery that’s classic Hong Kong: bright lights, tall buildings, people rushing about.

But camouflaged in the normalcy is a business that seemingly exists in name only.
Take the elevator to the Easey building’s 21st floor, and in room 2103 is the registered office of Unaforte Limited Hong Kong. It’s a company accused by the United Nations of violating sanctions on the Democratic People’s Republic of Korea (North Korea’s official name) for helping the country make money internationally, funding everything from its nuclear weapons program to the lavish lifestyles of North Korean Supreme Leader Kim Jong Un and Pyongyang’s most important players.
At least, Unaforte is supposed to be there. That is the address listed on its publicly available corporate filings provided to the Hong Kong government. When CNN visited the office, it found neither Unaforte nor its listed company secretary, Prolive Consultants Limited.
Instead, room 2103 was home to a seemingly unrelated company: Cheerful Best Company Services. Only one man was there when CNN stopped by, and he said a representative for Prolive Consultants only comes by every so often to pick up mail. He had not heard of Unaforte.
The United Nations Panel of Experts on North Korea — the body charged with monitoring sanctions enforcement on the hermit nation — said in two recent reports that Unaforte opened and owned a bank in the North Korean city of Rason. That is likely a violation of the latest UN Security Council resolution banning joint international ventures with North Korea, according to Christopher Wall, a lawyer who specializes in international trade law and a partner at Pillsbury Winthrop Shaw Pittman in Washington, DC.
North Korea is believed to use these types of practices to cover up much of its trade, from selling coal and fuel to exporting weapons.
“The (North Korean) regime accesses the international financial system through front companies and other deceptive financial practices in order to buy goods and services abroad,” Sigal Mandelker, the undersecretary for terrorism and financial intelligence at the US Department of the Treasury, said in Senate testimony on September 28.
Hong Kong is one of two business jurisdictions (along with the British Virgin Islands) where the UN Panel of Experts on North Korea has seen the largest share of North Korean-controlled front companies operating, said Hugh Griffiths, the panel’s coordinator.
When Unaforte’s company particulars show up in Hong Kong’s publicly available corporate records, the name of just one individual appears. He holds a passport from the small Caribbean island of Dominica. A passport number is there, but not a phone number.
Those details shed light on Hong Kong’s incorporation requirements. To start a company in Hong Kong, one needs at least one director (has to be an actual person) and a company secretary (which can either be a person or another company, but must be based in Hong Kong), according to the Companies Registry website.
Companies that are sanctioned in most cases cannot easily conduct transactions in the dollar, as US banks have to back those deals and would filter and flag sanctioned entities, Anthony Ruggiero, an expert in the use of targeted financial measures at the Foundation for the Defense of Democracies, told CNN.
The DHID charges revealed that to get around US prying eyes, North Korea uses a complex ledger and credit scheme to hide North Korea’s involvement in dollar transactions, Ruggiero explained to Congress in September.
Thirteen of DHID’s front companies were located in Hong Kong. Eleven shared the same registered address in Wan Chai, less than a kilometer away from the Easey Commercial Building, the indictment said. Read more here from CNN.