Think Tank Predicted Russian Cyberwar v. United States

Washington, D.C., May 3, 2017 – A Rand Corporation 1967 paper predicted many of the cyber dilemmas faced by policy makers today, and a 2017 expanded analysis of the “GRIZZLY STEPPE” hacking by Russian cyber operators disclosed key findings about the techniques the hackers used and ways to mitigate them, according to the National Security Archive publication today of 40+ highlighted primary sources from the critically-praised “Cyber Vault” at http://nsarchive.gwu.edu/cybervault.

Compiled and edited by noted intelligence historian Dr. Jeffrey T. Richelson, the Cyber Vault collection of primary sources is growing by a dozen or more documents every week, and includes the declassified briefings provided by the National Security Agency to the George W. Bush and Barack Obama transition teams in 2000 and 2009, respectively.  The collection also includes a 2016 order from the U.S. Cyber Command to set up a unit with the mission of debilitating and destroying computer and communications operations of the terrorist group ISIS.

The Cyber Vault team obtained the 2016 order under the Freedom of Information Act (FOIA).  The project has filed scores of other FOIA and declassification requests as part of a multi-year documentation contribution to the growing field of cyber studies, with the support of the William and Flora Hewlett Foundation.

The 2000 transition briefing explicitly foreshadowed the Edward Snowden controversy, warning the new White House team that the 4th Amendment-protected communications of Americans were inextricably mixed with those of foreigners on the Internet.  The 2016 U.S. Cyber Command order established a joint task force designed to bring the resources of the Defense Department, Intelligence Community, and Justice Department to bear against the terrorist group that the Trump administration has since designated its top foreign policy priority.


Cyber Vault Highlights

By Jeffrey T. Richelson

On March 30, 2016, the National Security Archive opened its Cyber Vault, a repository of documents on all aspects of cyber activity – including computer network defense (and other other aspects of cybersecurity), computer network attack, and computer network exploitation. The more than 750 documents currently in the vault have been drawn from a variety of sources – Freedom of Information Act releases, websites of both U.S. federal and state government organizations, courts, foreign government organizations, NATO, government contractors, think-tanks, advocacy groups, and media websites (including Wikileaks and those that posted documents provided by Edward Snowden).

In addition to relying on a multitude of sources to populate the Cyber Vault, the Archive has sought to accumulate a diverse set of documents – which has guided its collection strategy. As a result, the Cyber Vault includes significant documents from the 1960s and each subsequent decade, on cyber organization, on policy and strategy, on domestic and foreign cyber activities, on cybersecurity requirements, and on cyber crimes and the related investigations. Also included are intelligence assessments and theses. The documents also represent a spectrum of classifications, from unclassified, to formerly classified, and – in the cases of Wikileaks and Snowden documents – currently classified documents. Many of the documents cut across a number of categories.

Among the documents represented from the 1960s and 1970s are two seminal papers.  One is Willis Ware’s 1967 effort, Secrecy and Privacy in Computer Systems (Document 1), written for the RAND Corporation, and one of the very first systematic approaches to information leakage, security, and privacy. The other (Document 2), produced by a staff member of Britain’s signals intelligence agency, the Government Communications Headquarters (GCHQ), represents the initial development of public key cryptography – although it was not declassified until years after the concept had been made public by American mathematicians.

That document is also one of several illustrating or concerning foreign government cyber efforts. A much more recent GCHQ product (Document 29) was one of the documents provided to Glenn Greenwald and Laura Poitras by Edward Snowden – a briefing on efforts to deanonymize users of The Onion Router (TOR) network, which had been developed by  members of the U.S. Naval Research Laboratory (Document 32) as a means of protecting online communications. Chinese cyber organization, policy, and operations are covered, collectively, by two documents – an unclassified paper (Document 36) produced under the auspices of the NATO Cooperative Cyber Defence Centre of Excellence and a Top Secret codeword NSA briefing (Document 24) on the People Republic of China’s computer network exploitation activity. Current Russian cyber activities are discussed in an extract (Document 35) from the controversial “Trump Dossier,” written by a former British Secret Intelligence Service officer.

Other documents concern hostile cyber activities from an earlier era. One, from 1998  (Document 12) provides information to the then director of the FBI, Louis Freeh, concerning the SOLAR SUNRISE investigation concerning intrusions into at least 11 unclassified DoD Computer systems at various locations in the United States. Another FBI memo (Document 13), concerns a 1999 investigation into intrusions into computer systems in the United States, the United Kingdom, Canada, Brazil, and Germany – an investigation which took some of the investigators to Moscow. In a newly released portion, it discusses possible response to intrusions – including the creation of “honeypots” containing “beacon” files.

In addition to being the victim of intrusions, the U.S. has also debated and formulated policy, granted authority over, and conducted intrusions in pursuit of national security objectives. In March 1997, Secretary of Defense William Cohen assigned the responsibility for computer network attack and exploitation to the National Security Agency in a short memo (Document 10). During that Spring a senior NSA official addressed the issue of cyberwar in a Secret article (Document 11) in a NSA journal. Many years later, according to a number of accounts, U.S. and Israeli cyber personnel were able to penetrate industrial control systems associated with the Iranian nuclear program and damage centrifuges that could produce weapons-grade material. While there have been no publicly released executive branch documents concerning the “Stuxnet” operation, it has been the subject of reports by RAND and the Congressional Research Service. (Document 26).

Concern over possible Russian intrusion into U.S. computer systems related to elections became a significant subject of discussion in the 2016 presidential election. Apprehensions over the possibility of such intrusions go back at least a decade. A December 2007 report (Document 20) was commissioned by Ohio’s Secretary of State, and contained disturbing results about the vulnerability of Ohio’s electronic voting systems. In the wake of a poorly-received, brief analysis of alleged Russian cyber activity related to the 2016 election, the Department of Homeland Security’s National Cybersecurity and Communications Integration Center produced more detailed examination (Document 41) of the GRIZZLY STEPPE activity.

By the time the DHS report was issued, President Trump had been presented with a draft executive order on cybersecurity (Document 40 ), which would undoubtedly have been the first of a significant number of presidential actions on cybersecurity – just as President Obama had signed a number of cyber-related executive orders and presidential directives, including one (Document 34) that established a Cyber Threat Intelligence Integration Center. Ultimately, the Trump draft order became the first in a series of drafts, and no order has yet been signed.

Other highlight documents include:

    • A 1979 exploration (Document 5) in an NSA journal on computer system vulnerabilities
    • A 1996 treatment (Document 9) of the threat to computer systems from human Intelligence operations.
    • A 2001 memo (Document 15) from the director of NSA concerning a major computer outage at the agency.
    • A 2008 Director of National Intelligence cyber counterintelligence plan (Document 21).
    • A 2016 USCYBERCOM order (Document 37) to establish a task force to combat ISIS in cyber space
    • A 2016 examination (Document 38) of cyber threats to nuclear weapons systems.
    • A 2016 DHS Office of Intelligence and Analysis briefing (Document 39) on cyber threats to the homeland

 

Bayrock in Money Laundering Scheme

Trump business partner accused of involvement in Dutch-based money laundering scheme

  • sater-en-trump

    Dutch letter box companies implicated in million-dollar fraud

    The American real estate development company Bayrock, through which Donald Trump constructed hotels and apartment complexes, used Dutch letter box companies in a network suspected of being involved in money laundering. A ZEMBLA investigation suggests that Bayrock siphoned off $1.5 million dollars by setting up a corporate structure in the Netherlands in 2007. In New York, Bayrock also stands accused of large-scale tax fraud. This incriminating information could place Donald Trump in an extremely difficult position, claims attorney F. Oberlander, who is prosecuting Bayrock on behalf of the State of New York: “The maximum jail term would be 30 years. So you’re in really serious trouble.”

    In 2005, Donald Trump became 18% owner of an hotel-condominium known as Trump SoHo. Bayrock, the other owner, is accused of perpetrating fraud on a grand scale through, among other things, Trump SoHo. According to US law, this means that Trump is jointly liable for Bayrock’s criminal activities. Oberlander concludes:
    “Anybody running a business through a pattern of crime is guilty of racketeering. Anybody knowing what they’re doing and are helping is guilty of racketeering conspiracy. They go to jail.”

    All Bayrock wants is to make clear to ZEMBLA that the Dutch corporate construction was established on the advice of an external legal counsel. ZEMBLA discovers that the firm in question is Bracewell & Giuliani. Rudy Giuliani, the former mayor of New York, and part owner of the law firm at the time, is also a Trump confidante. ZEMBLA has access to correspondence between the law firm and the Dutch director of a trust company in Amsterdam, which leaves no doubt as to the ultimate beneficiary owners of the Dutch business construction: the director of Bayrock and the Khrapunov family from Kazakhstan.

    Viktor Khrapunov is a fugitive ex-mayor and governor from Kazakhstan. The Kazakhstan government accuses Khrapunov of embezzling hundreds of millions of state assets. In 2007, Bayrock and the Khrapunov family founded the Dutch joint venture KazBay B.V. ZEMBLA has copies of the act of incorporation, bank statements and internal communications showing how the suspected money laundering scheme was set up. “It was designed to get millions of dollars out of New York into Europe. Through KazBay. KazBay was just a conduit”, asserts attorney Oberlander.

    The Dutch director of KazBay B.V. tells ZEMBLA that he has no knowledge of his clients’ dubious backgrounds. In 2007, the year that the Dutch letter box companies were established, Viktor Khrapunov’s alleged criminal dealings become public knowledge. Around the same time, it also becomes clear that Felix Sater, one of the Bayrock owners, has concealed his criminal past and mafia connections.

    Image result for felix sater

    For years, the Dutch Central Bank has been concerned that Dutch trust companies are failing to comply with legislation. Over half of the companies investigated by the Dutch Central Bank are in breach of the regulations, such as subjecting their clients to rigorous screening. Investigations performed by the supervisory body reveal that hundreds of politicians from Russia and Kazakhstan make use of Dutch trust companies. Frank Elderson, director of the Dutch Central Bank: “There are no legal stipulations forcing you to do business with a former political hot-shot from Russia or any other high risk nation.”

    Six months ago, the Financial Times reported that, in 2013, the Khrapunov family had bought three apartments in Trump SoHo to the tune of 3.1 million dollars. A sale from which Trump benefitted as joint owner. The White House, the Trump Organization and Viktor Khrapunov decline to answer ZEMBLA’s questions. In the episode ‘The Dubious Friends of Donald Trump: Part 1 – the Russians’, ZEMBLA explores the possible implications of these shady business dealings for the United States’ 45th president.

     

*** More on the letter box issue:  Related reading/ EU to close ‘letterbox’ company tax loopholes

“Nearly one-third of all foreign profits reported by US corporations in 2003 came from just three small, low-tax countries: Bermuda, the Netherlands, and Ireland,” said a White House factsheet in 2009. Like the Queen in Shakespeare’s ‘Hamlet’ who protested that ‘The lady doth protest too much, methinks,’ the Dutch government hypocritically objected to the Netherlands being dubbed a tax haven and the White House deleted the line. The Dutch tax haven, has about 20,000 letter-box companies and in recent years, Facebook joined U2, the Irish rock group, to avail of the system. The Netherlands also hosts thousands of foreign financial vehicles. Bloomberg reports that a bookkeeper’s home office in Amsterdam, doubles as the headquarters for a Yahoo! Inc. offshore unit.  It says as a deficit-strapped Europe raises retirement ages and taxes on the working class, the Netherlands’ role as a $13tn relay station on the global tax-avoiding network is prompting a backlash.

Bloomberg says that attracted by the Netherlands’ lenient policies and extensive network of tax treaties, companies such as Yahoo, Google, Merck & Co and Dell have moved profits through the country. Using techniques with nicknames such as the “Dutch Sandwich,” multinational companies routed €10.2tn in 2010 through 14,300 Dutch “special financial units,” according to the Dutch Central Bank. Such units often only exist on paper, as is allowed by law.

Google, IBM and Italian oil and gas group ENI head the list of companies using letter-box companies to cut their Dutch tax bills to between 0 and 5%, the Volkskrant daily said last week.

Trump, Peace Deal with Palestinians, Easy

So far there has been no read out if Trump asked or rather demanded that the Palestinian authority to stop paying families of terrorists.

The PA, which receives millions in funding from U.S. taxpayers, spends roughly 8 percent of its annual budget, some $300 million a year, on salaries for terrorists who are imprisoned in Israel as well as the families of terrorists who attacked the Jewish state.

Mahmood Abbas, the head of the Palestinian Authority met with President Trump at the White House. Abbas brought the following people with him:

So who are these people?

Well Usama Qawasmeh in April of last year said that the West sponsors Islamic extremism and that 9/11 was no coincidence.

Saeb Erikat was one of the negotiators of the Oslo Accords and said there will never be peace if Trump moves the embassy to Jerusalem.

Ziad Abu Amr is an author, negotiator and foreign minister in charge of economics for Gaza. By the way, he was educated at Georgetown.

Hosso Zomlot is the Palestinian ambassador to the United States and continues to broadcast Israel as an occupier while declaring a two state solution is an international responsibility.

Ahmad Assaf, in 2011 said: ‘if armed resistance can accomplish the goals of the Palestinian people, we will not hesitate even for a second.’

***

So there was a working lunch at the Trump White House.

Working lunch with discussions of economic and trade opportunities?

“I’m committed to working with Israel and the Palestinians to reach an agreement,” Trump said. “I will do whatever is necessary to facilitate the agreement.”

Acknowledging an Israeli-Palestinian accord is seen as the “toughest deal to make,” Trump told Abbas, “Perhaps we can prove them wrong” – before heading into a meeting with the Palestinian Authority president.

Abbas told Trump moments earlier, “Mr. President, with you we have hope.”

The peace process has been stalled since 2014 when former Secretary of State John Kerry’s effort to lead the sides into peace talks collapsed. Since then, there have been no serious attempts to get negotiations restarted. The Obama administration spent its last months in office attempting to preserve conditions for an eventual resumption.

“We hope this will be a new beginning,” Abbas told Palestinians at a meeting in Washington on the eve of the talks.

During remarks alongside Trump at the White House, Abbas – through a translator – stressed that his people want a Palestinian state with the capital of East Jerusalem and borders along the pre-1967 lines.

Israel rejects the 1967 lines as a possible border, saying it would impose grave security risks.

Trump stressed that there can be no lasting peace unless Palestinian leaders speak in a unified voice against “incitement … to violence and hate.”

He also was expected to press Abbas to end payments to families of Palestinians killed or held in Israeli jails, which critics decry as payments for terrorism. Republicans lawmakers have urged a halt to such payments.

While Abbas will be challenged on the payments, officials said Trump will reiterate his belief that Israeli settlement construction on land claimed by the Palestinians does not advance peace prospects.

In his Wednesday comments, Abbas also criticized ideas for a “one state” peace agreement, saying it could mean “racial discrimination” or an apartheid-like system.

In a February news conference with Israeli Prime Minister Benjamin Netanyahu, Trump broke with longtime U.S. policy by raising the one-state idea and withholding clear support for an independent Palestine, though officials quickly stressed he would support any arrangement agreed by the two sides.

Another contentious issue: Trump’s campaign promise to move the U.S. Embassy in Israel from Tel Aviv to Jerusalem. The symbolic relocation would essentially recognize Jerusalem as Israel’s capital. Abbas and other Arab leaders have said doing so would inflame already simmering tensions.

Since taking office, Trump has backed away from the pledge while saying he’s still discussing it. On Tuesday, Vice President Mike Pence said the White House was giving “serious consideration” to the idea. More here.

Has the Best Already Happened in this Trump White House?

During the campaign, so many friends and acquaintances said the only reason to vote for Trump was the Supreme Court….we needed someone like Gorsuch. We got him, so have we seen the best we are going to get out of this White House in the next 4 years? Sure, we have been delighted about several executive orders, some which have positively changed the outlook and business attitude across the country and for many industries. But are those signatures enough and is it governing?

Much has been in the news in recent days about the omnibus bill where the Republicans and conservatives did not get ask for or receive any dollars from the campaign and Trump pledge list….wait until September we are told. So, the ‘art of the deal’ comes in September?

Anyway….is there some other obscure liberal standard and connections at this Trump White House we are not watching or giving enough attention to? My answer is YES. I am not seeing any swamp being drained, are you? Read on. This post is merely fair warning….keep watch.

I would ask all you readers to please check out Jared and Ivanka….they are quite troubling….

During the campaign season much was in the media that we are supposed to hate on Goldman Sachs and George Soros…okay fine…. so are they both acceptable today just because of Donald Trump? Hello?

*** Here is an item of real concern…..

Now, according to news reports, Ivanka Trump, while a federal employee, is soliciting donations for a new fund from foreigners. This comes on top of instances in which she sat with heads of state (from Japan and China) at a time that her business was doing deals in their countries.
Mike Allen, co-founder and executive editor of AXIOS Media and former chief political reporter for Politico, reported: “Ivanka Trump told me yesterday from Berlin that she has begun building a massive fund that will benefit female entrepreneurs around the globe. Both countries and companies will contribute to create a pool of capital to economically empower women. … Canadians, Germans and a few Middle Eastern countries have already made quiet commitments, as have several corporations, a source said.” The OGE guidelines specifically state: “Executive branch employees are subject to restrictions on the gifts that they may accept from sources outside the government. Unless an exception applies, executive branch employees may not accept gifts that are given because of their official positions or that come from certain interested sources.” More here.

*** Image result for jared and ivanka white house Link

Jared Kushner disclosure form left out stake in tech startup Cadre

Jared Kushner, the president’s son-in-law and senior adviser, didn’t identify on his government financial disclosure form that he is currently a part-owner of a real-estate finance startup and has a number of loans from banks on properties he co-owns, according to securities filings.

Kushner’s stake in Cadre—a tech startup that pairs investors with big real-estate projects—means the senior White House official is currently a business partner of Goldman Sachs Group Inc. GS, +0.12% and billionaires including George Soros and Peter Thiel, according to people close to the company.

The Cadre stake is one of many interests—and ties to large financial institutions—that Kushner didn’t identify on his disclosure form, according to a Wall Street Journal review of securities and other filings. Others include loans totaling at least $1 billion, from more than 20 lenders, to properties and companies part-owned by Kushner, the Journal found. He has also provided personal guarantees on more than $300 million of the debt, according to the analysis.

An expanded version of this report appears at WSJ.com.

Need something more on Ivanka now? Okay…no one bothered to check ethics law or with the Ethics Office.

Anyone remember Jamie Gorelick?

Attorney Jamie Gorelick had just finished vetting potential Cabinet secretaries for Hillary Clinton — and raising money for the failed 2016 Democratic nominee — when Jared Kushner called her last year, seeking legal counsel.

Gorelick, who served as deputy attorney general under President Bill Clinton and a former member of the 9/11 Commission, was recommended to Kushner by former News Corp. executive Joel Klein, who now serves as chief strategy officer at Oscar, the health insurance company co-founded by Kushner’s younger brother, Josh. Klein told Jared Kushner he needed a real lawyer to sort through nepotism and conflict-of-interest concerns that could bar him from working in the White House for his father-in-law, President Donald Trump.

“He said that Jared was a good person, and that he thought he would be a good influence on the administration,” Gorelick said in an interview Thursday afternoon, sitting in a sunny conference room at her law firm, Wilmer Hale.

Gorelick, widely rumored to have been Hillary Clinton’s front-runner for attorney general, hesitated before agreeing to represent someone who served as the de facto campaign manager for a candidate who encouraged chants of “Lock Her Up” at rallies.

“At the time, I was grieving for Hillary Clinton,” she said. “This was not the transition I was contemplating working on — at all. And I didn’t know Jared Kushner. And I did think twice about it.”

Since signing on with Kushner, Gorelick has been in the spotlight for lending credibility to his efforts to comply with federal ethics laws — as well as those of his wife, Ivanka, also a Gorelick client.

It has been an uncomfortable position for a dyed-in-the-wool Democrat to assume, and Gorelick has been shocked by the vitriol that has been hurled in her direction.

“Hey Jamie Gorelick, you’ve just poured that ‘Complicit’ perfume on yourself. #Ivanka,” top Democratic consultant Hilary Rosen, also a former Clinton surrogate and a partner at SKDKnickerbocker, tweeted, in reference to a “Saturday Night Live” sketch about an Ivanka Trump-branded scent called “Complicit.”

Gorelick sees herself as part of a time-honored Washington tradition of well-respected lawyers representing clients from the opposite party. Two of President Bill Clinton’s chiefs of staff, Mack McLarty and Erskine Bowles, turned to Arthur Culvahouse, former White House counsel under Ronald Reagan, to oversee their ethics arrangements, as did members of President Barack Obama’s administration.

In hiring Gorelick, Ivanka Trump and Kushner — two expats from Midtown Manhattan, who are part of an administration trying to upend all of Washington’s norms — are simply following that old D.C. playbook, buying themselves the patina of a former Clinton Justice department official vouching for their good names.

But Gorelick is testing whether that norm still holds true in Trump’s Washington. Many former Clinton diehards have branded themselves as “the resistance” and view any effort to work with advisers close to the president as an obscene attempt to “normalize” a politically abnormal president. For this liberal crowd, Ivanka Trump and Jared Kushner — branded as the moderates of Trump’s world — are viewed as extensions of the president, just operating under more glamorous, and therefore dangerous, facades.

Earlier this week, Gorelick vouched for Ivanka Trump’s ability to work as a de facto full-time White House adviser — complete with a security clearance, a West Wing office, and a government-issued phone — without formally becoming a government employee. Under the unprecedented arrangement, the first daughter will only voluntarily submit herself to ethics laws, without taking an oath of office that would subject her to disclosure and other requirements.

Gorelick also maintains that it would be impossible for Ivanka Trump to sell her eponymous fashion and jewelry line, because the buyer would be able to use her name — acknowledging there’s no way to create a setup for the first daughter that would be free of conflict of interest.

“The swirl of money and conflicts is unprecedented and their arrangements are not curing it,” said Robert Weissman, president of the nonprofit Public Citizen. “That Ivanka Trump has branded her company with her name is a complicating factor, and it should be, for her, not for the American people. Looking at [Gorelick’s] comments saying it doesn’t work for Ivanka to sell off the company — well, then maybe it doesn’t work for her to be in government.”

Even inside the Republican Party, the bipartisan spirit of the Washington power lawyer scene is being tested. “Some of my Republican friends who are ‘Never Trumpers’ are not particularly happy that I wound up doing the vice-presidential vetting,” Culvahouse conceded. “But the question is: Do you want him to fail, or do you want good people to get in? Is President Trump better served with Kushner and Ivanka serving with him in the White House? Absolutely he is.”  More here.

 

 

 

College Education is in a Tailspin, Foreign Made?

November of 2016, this site published a related article: Foreign Spies on our College Campuses

***

Retired Col. Larry Sellin, PhD wrote in part under the title “Replace and Repeal Universities“:

Academic political intolerance or Totalitarianism 101 is both deliberate and as old as the Russian Revolution.

It is based on an essay “Repressive Tolerance” written in 1965 by Herbert Marcuse, an adherent of the Soviet-controlled Frankfurt School, which was the cultural arm of the Communist International founded to undermine western Judeo-Christian democracy from within.

Fred Bauer, in his article “The Left and ‘Discriminating Tolerance,'” captures Marcuse’s inverted logic and identifies the origin of the political intolerance presently practiced at U.S. academic institutions:

“Marcuse argued that, because of the radical repressiveness of Western society, a tolerance for all viewpoints actually contributed to social oppression. A pervasive network of assumptions and biases implicitly privileges the viewpoint of the powerful, so that seemingly ‘equal’ presentations of opposite opinions actually end up benefiting the viewpoint of the powerful. He offered the example of a magazine running a piece criticizing the FBI along with one praising the FBI. Fair and balanced? Not so fast, Marcuse said: ‘the chances are that the positive [story] wins because the image of [the FBI] is deeply engraved in the mind of the people.’ Because of social programming, the inhabitants of a given society automatically favor certain values. The ideological playing field’s lack of levelness means that seemingly equal presentations of ideas are not really equal.” Full article here.

*** Yes this is proven and bad enough, but there is more.

On April 13-15, the King Fahd Center for Middle East Studies at the University of Arkansas held a symposium on so-called “honor violence,” as exemplified by honor killings, forced marriage, and other such delightful acts.

The Center, as its website informs us, “was founded with a $20 million endowment from the Saudi government in the mid-1990s.  An initial endowment of $2 million, dedicated toward language, literary translation and publication was followed by a much larger $18 million gift designed to spark the foundation of a comprehensive Middle East Studies program at the undergraduate and graduate levels.” Read more here.

Okay, then we have this one:

The FBI raided the school 4…..FOUR years ago!

In an exclusive investigation, Fox News reports:

Based just four miles from the Pentagon in northern Virginia is an innocuous-sounding online school for “management and technology” – which a Fox News investigation reveals has been at the center of multiple federal probes about its leadership’s alleged ties to the Chinese military and whether thousands of records from U.S. service members were compromised.

The University of Management and Technology in Rosslyn, Va., which opened in 1998, touts a campus in Beijing and “partnerships” with universities around the world. The U.S. taxpayer-funded school claims to have had 5,000 graduates in the last five years and to be “especially proud of our students stationed in US military bases around the globe.”

However, there is another side to the school’s leadership that drew the attention of the FBI, the Justice Department, the Pentagon, Immigration and Customs Enforcement, and the Naval Criminal Investigative Service (NCIS) since at least 2012 — and perhaps as early as 2009.

In December 2012, the FBI made two very public raids of UMT and the northern Virginia home of university president Yanping Chen Frame and its academic dean, her husband J. Davidson Frame. Documents reviewed by Fox News show it was a counter-intelligence case, known as a “200d,” one of the most highly sensitive categories for a federal probe.

Photos, exclusively obtained by Fox News, appear to show Chen as a young officer in the People’s Liberation Army, the military wing of China’s communist party. Another photo shows Frame saluting his wife, Chen, who is holding a uniform. Three independent experts said it was a Chinese military colonel’s uniform.

Yet since those FBI raids, UMT has continued to collect more than $6 million from Defense Department tuition assistance programs as well as the Department of Veterans Affairs through the post-9/11 GI bill.

“It’s a bad deal for the soldiers, and it’s a bad deal for the taxpayer,” Stephen Rhoads, a military veteran turned whistleblower who says he worked with the FBI on the case, told Fox News in an exclusive interview. “Nobody’s getting what they paid for.”

Rhoads said he worked at UMT recruiting vets when the FBI approached him in 2012 regarding the federal investigation. Emails and other documents reviewed by Fox News corroborate key elements of Rhoads’ story.

“One of the first sentences she [Chen] ever threw out — after she found out I was an Army officer, was, ‘Well … I was a colonel in the army,’” Rhoads explained. “During our first face-to-face encounter, absolutely … she did not deny it.”

Rhoads said he thought Chen meant the U.S. Army, and asked whether she trained in Texas. “She laughed and said, ‘Oh, no, I was in the Chinese army, you know.’”

Chen, 64, came to the United States in 1987 from Beijing on a non-immigrant visa with her daughter Lele Wang. The Chinese government funded Chen’s research at George Washington University where she received a Ph.D. in Public Policy in 1999, the year after UMT was created.

While Rhoads says Chen was upfront about her Chinese military experience, he claimed she hid those ties on immigration applications. Fox News reviewed Chen’s immigration records where she consistently denied ties to the Chinese or any foreign military. When asked, “Have you ever been a member of, or in any way affiliated with, the communist party or any other totalitarian regime?” Chen checked “no.” She would later become a naturalized U.S. citizen.

While there are no U.S. laws preventing a naturalized citizen from running a school like UMT, the Fox News investigation found that Chen’s ties to the Chinese military appear to run deep.

Three outside experts consulted by Fox News confirmed the authenticity of the Chinese uniforms in the photos of Chen and Frame.

“If somebody was wearing that uniform, I would say that there’s a very great likelihood that they were in the People’s Liberation Army,” Dennis Blasko, a leading Chinese military expert said, referring to the photo of what appears to be Chen in uniform.

Asked about the photo of Frame saluting his wife, Blasko observed, “This is a P.L.A. officer’s uniform — active duty — from between 1987 and 2007 … And from the epaulettes, we can see this — three stars and two red stripes would be a full colonel.”

Blasko emphasized that P.L.A. insignia can only be purchased with the permission of the Chinese military, and “you would have to have a certificate from your unit to buy [it.]”

Blasko, a West Point graduate who worked as a military attache in China, wrote “The Chinese Army Today: Tradition and Transformation for the 21st Century,” one of the definitive books about the Chinese military.

In her George Washington University dissertation, Chen thanks her father, a P.L.A. general, who directed arms and technology development. “My father, General Chen Bin, gave me the inspiration to pursue this area of study,” Chen wrote. “As former Chairman of COSTIND (1982-87), he was an important player in supporting and directing the (Chinese) space program.”

In her 2012 FBI interview, Chen denied she ever was a colonel in the P.L.A., emphasizing she had worked as a doctor in the Chinese space program. Chen said it was a “civilian agency.” The interview summary suggests federal agents challenged Chen’s characterization. Outside experts told Fox News the Chinese civilian and military space programs are intertwined.

While Chen’s immigration application is more than a decade old, and past the five-year statute of limitations, there may be a “continuation” of fraud, according to Ray Fournier who worked with the State Department’s office of diplomatic security for more than 20 years. Fournier, an expert on visa and passport fraud, worked for the Joint Terrorism Task Force in San Diego, where his investigative work led to an arrest warrant for the American-born cleric Anwar Awlaki, who was later killed by the CIA.

Fournier said, “If she has marked ‘no’ on the petition, but if in fact, the answer is yes … then we have a false statement. And where that comes into play, most assuredly, is in the arena of passport fraud. It is this application.” With each renewal of Chen’s U.S. passport, Fournier said, investigators should determine whether the falsehood was repeated. “These are issues of inadmissibility,” he said.

While going through the immigration process, Chen was also launching what would become a multi-million-dollar online academy. But that academy’s work would eventually attract the attention of federal investigators, who questioned whether students’ records were remotely accessed from China.

Before the 2012 raid, Chen’s daughter Lele Wang who also works at UMT, told the FBI that “‘Contractors’ in the UMT Beijing Office have [administrator] privileges” to access the student database.

Rhoads said UMT recruited service members who provided their military history when they enrolled. “It got uploaded into an O-drive, they called it … their personal military bio, you know, where they were trained, how they were trained, how long, that could be remotely accessed.”

Rhoads said Chen had a particular interest in Ohio’s Wright-Patterson Air Force Base, which is a research and technology hub.

And there was more. “She wanted me to go out to these remote reserve and National Guard centers, you know … in small-town America and start gettin’ U.S. soldiers from those centers. Get their information, basically. Who’s out there in the woods? How many units we got?”

Rhoads recalled to Fox News that he was instructed by the FBI to tell Chen that he was going to testify before a Virginia grand jury. “They wanted to, I guess see how … she would react.”

At the time, Rhoads said Chen had no idea he was working with the bureau.

He said, “Well, at this point, she didn’t know I was working for them at all. And she’s like, ‘Oh, you don’t tell them anything. We don’t know each other. You don’t … know what you don’t know,’ was her buzz phrase. ‘You don’t — you don’t know I was a colonel in the P.L.A. They’ll never have proof to say that’.”

Emails obtained by Fox News show Rhoads and at least one FBI agent alerted the Defense Department, but another Memorandum of Understanding (MOU) was signed in 2014 through 2019 allowing UMT to collect millions in federal taxpayer aid.

An FBI agent in one email exchange wrote, “I let my management and the AUSAs [assistant U.S. attorneys] know about her renewal with DoD. Incredible.”

Asked about the renewal, as well as whether DoD personnel were warned and additional steps were taken to vet UMT, the DoD chief for Voluntary Education Assistance, Dawn Bilodeau, referred questions to Pentagon spokesperson Laura Ochoa. In an email, Ochoa said, “In light of reports regarding University of Management and Technology (UMT), the Department is reviewing the DoD MOU signed between the institution and the DoD for compliance.”

No one has been charged with any crime in connection with the investigation. Sources told Fox News that Assistant U.S. Attorney for the Eastern District of Virginia James P. Gilllis got the case, but there was a disagreement with the FBI over how to proceed, based on the case law and the extent to which sources and methods would be revealed.

Neither the FBI nor a spokesman for Gillis would comment to Fox News but separately, a spokesman for NCIS said they cannot comment on an “ongoing investigation.” A FOIA request filed by Fox News Senior Executive Producer Pamela Browne confirmed an NCIS investigative file for UMT.

Fox News made repeated requests by phone and via email for interviews with Yanping Chen and J. Davidson Frame. After Chen’s daughter said they were too busy to prepare and traveling out of town, Fox News went to their offices in Rosslyn, Va.

A school representative, who would not identify himself, confirmed Chen and Frame were in the office that day, but after learning Fox News was at the front desk, the couple refused to come out. Fox News’ questions covered how UMT was run, Chen’s suspected military ties, whether service members’ records are secure, and how millions in taxpayer dollars are spent.

Fox News also sent a series of questions to the Chinese embassy in Washington, D.C., but there was no immediate response.

According to UMT, nearly 20,000 students have studied there, while 10,710 have earned degrees.