Category Archives: Whistleblower

WH to Employers, Make them Preferred Hiring Candidates

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We have been enduring the misguided mission by the White House to release criminals early from their prison sentences ah…you know those that were based on drugs but non-violent. Pssst, the last jail break included 1/3 of them that were in prison for life sentences. Anyway, now the White House is becoming their advisors and promoters to get jobs for them, almost by force. Check this out. The corporations also have to take a pledge?

If employers spent more time implementing better hiring practices, then perhaps this wouldn’t be necessary. There are now more and more ways to find out if your new employee has a criminal record, for example, using something like https://www.nationalcrimecheck.com.au/. But, albeit, we live in a world where not everything is so straight forward.

Is this really the best use of time by the White House?

FACT SHEET: White House Launches the Fair Chance Business Pledge

“Now, a lot of time, [a] record disqualifies you from being a full participant in our society — even if you’ve already paid your debt to society. It means millions of Americans have difficulty even getting their foot in the door to try to get a job much less actually hang on to that job. That’s bad for not only those individuals, it’s bad for our economy. It’s bad for the communities that desperately need more role models who are gainfully employed. So we’ve got to make sure Americans who’ve paid their debt to society can earn their second chance.

– President Barack Obama, Rutgers University, November 2, 2015

Today at the White House, Attorney General Loretta Lynch, Senior Advisor to the President Valerie Jarrett, and other White House officials hosted 19 companies from across the American economy who are standing with the Obama Administration as founding pledge takers to launch the Fair Chance Business Pledge. The pledge represents a call-to-action for all members of the private sector to improve their communities by eliminating barriers for those with a criminal record and creating a pathway for a second chance.

Companies signing the pledge today include: American Airlines, Busboys and Poets, The Coca-Cola Company, Facebook, Georgia Pacific, Google, Greyston Bakery, The Hershey Company, The Johns Hopkins Hospital and Health System, Koch Industries, Libra Group, PepsiCo, Prudential, Starbucks, Uber, Under Amour/Plank Industries, Unilever and Xerox.

Right now, there are approximately 2.2 million Americans behind bars. The United States accounts for 5 percent of the world’s population, and 25 percent of its inmates. Each year, more than 600,000 inmates are released from federal and state prisons, and another 11.4 million individuals cycle through local jails. Around 70 million Americans have some sort of criminal record — almost one in three Americans of working age.

Too often, that record disqualifies individuals from being a full participant in their communities — even if they’ve already paid their debt to society. As a result, millions of Americans have difficulty finding employment.

Since President Obama took office, this Administration has been committed to reforming America’s criminal justice system. Last summer, the President spoke about the importance of reducing barriers facing people who have been in contact with the criminal justice system and are trying to put their lives back on track. He then became the first President to visit a federal prison where he sat down with individuals who would be returning to their communities. In November, he visited with formerly incarcerated individuals and emphasized that a smarter approach to reducing crime and enhancing public safety must begin with investing in all of our communities. He also announced new efforts by this Administration to help formerly incarcerated individuals to rehabilitate and reintegrate back into their communities, including an upcoming rule from the Office of Personnel Management that will “ban the box,” delaying inquiries into criminal history until later in the federal hiring process. One way to prevent criminals in the workplace may be to use pre-employment tests (as found at https://www.berkeassessment.com/solutions) in order to find out more about your candidates before you accept their application for the role. Berke has many options available.

Building on these efforts, the White House issued a challenge to businesses to take on the Fair Chance Business Pledge. A broad array of businesses have come together to support the reforms needed to bring about this change.

By signing the Fair Chance Business Pledge, these companies are:

  • Voicing strong support for economic opportunity for all, including the approximately 70 million Americans who have some form of a criminal record.
  • Demonstrating an ongoing commitment to take action to reduce barriers to a fair shot at a second chance, including practices like “banning the box” by delaying criminal history questions until later in the hiring process; ensuring that information regarding an applicant’s criminal record is considered in proper context; and engaging in hiring practices that do not unnecessarily place jobs out of reach for those with criminal records.
  • Setting an example for their peers. Today’s announcement is only the beginning. Later this year, the Obama Administration will release a second round of pledges, with a goal of mobilizing more companies and organizations to join the Fair Chance Business Pledge.

Companies and organizations interested in joining the Fair Chance Business Pledge can so do by signing up HERE.

Building on today’s announcement, in the coming weeks, the White House and the Department of Justice will host events in Washington, D.C. and across the country to amplify leaders taking steps to provide fair chance opportunities:

  • The Justice Department has designated the week of April 24-30, 2016, as National Reentry Week and is coordinating reentry events across the country – from job fairs, to practice interviews, to mentorship programs, to events for children of incarcerated parents – designed to help prepare inmates for release. To learn more, click HERE.
  • In the coming weeks, the White House will host a Champions of Change event to honor individuals expanding fair chance opportunities. The event will highlight local leaders and programs that are improving their communities by partnering with the philanthropic and private sectors to help those who have been incarcerated rehabilitate and reintegrate. To learn more, click HERE.

THE FAIR CHANCE BUSINESS PLEDGE

We applaud the growing number of public and private sector organizations nationwide who are taking action to ensure that all Americans have the opportunity to succeed, including individuals who have had contact with the criminal justice system. When around 70 million Americans – nearly one in three adults – have a criminal record, it is important to remove unnecessary barriers that may prevent these individuals from gaining access to employment, training, education and other basic tools required for success in life. We are committed to providing individuals with criminal records, including formerly incarcerated individuals, a fair chance to participate in the American economy.

These companies put forth their pledges as follows:

AMERICAN AIRLINES: At American Airlines, our employees are the source of our success, with a clear connection between the quality of our team and the quality of the experience we can provide our customers. American is working hard to recruit, develop, retain and engage the very best people – those with unique perspectives and ways of thinking that will position us as a global leader – while recognizing the importance, in appropriate circumstances, of giving people a second chance.

To ensure we aren’t removing qualified individuals from employment consideration, we have banned the box and we don’t ask criminal history questions until someone accepts an offer. We are also conducting consistent, reliable, and fair-minded background checks as part of our hiring process.

We commend the Administration and applaud the many corporations and organizations that are taking similar actions to give all Americans a fair chance to succeed and enjoy everything our country has to offer. American Airlines is proud to take the Fair Chance Business Pledge.

THE COCA-COLA COMPANY: Fair chance policies and programs not only enhance the likelihood of success for the more than 600,000 individuals who are released annually from state and federal prisons – they also help to reknit families and rebuild communities. For these and other reasons as outlined below, The Coca-Cola Company is pleased to join the Fair Chance Business Pledge as a signatory.

The Coca-Cola Company has a long-standing commitment to equal opportunity. This spans our employment practices and development of existing employees. We are dedicated to maintaining workplaces that are free from discrimination or harassment on the basis of race, color, religion, sex, national origin, age, disability, pregnancy, veteran status, genetic information, citizenship status, marital status, sexual orientation, gender identity and/or expression, or any other reason prohibited by law. The basis for recruitment, hiring, placement, training, compensation and advancement at the Company is qualifications, performance, skills and experience.

We are particularly proud to share that The Coca-Cola Company and Coca-Cola Refreshments do not engage in background screening related to criminal history until after a decision to hire has been made. When there is a successful applicant who has a criminal history, our talent acquisition team has in place a process to review the relevancy of the history to make an informed decision. We recognize that creating a pathway for a second chance is an important first step in creating successful, sustained re-entry into mainstream society.

FACEBOOK: Facebook is a vocal supporter of equality and we are proud to stand with a growing number of companies who have chosen to ban the box. We strongly oppose hiring practices that discriminate against qualified applicants on the basis of criminal record.

Recently, Facebook collaborated with the California Department of Justice on the agency’s OpenJustice initiative, a program that promotes transparency in the criminal justice system to strengthen the public trust, enhance government accountability, and inform public policy development.

Signing the Fair Chance Hiring pledge allows us to reaffirm our commitment to find ways that our company can create opportunities for all to succeed. And we encourage other organizations and employers to do the same.

GOOGLE: Google has banned the box in its hiring process since 2011. In the last year alone, Google has advanced racial justice and criminal justice reform with grants to organizations and leaders totaling over $5 million. Google will continue its commitment to criminal justice reform and creating opportunities for formerly incarcerated Americans by:

  • Convening other leading technology companies to recruit more companies to ban the box and go beyond the box to support formerly incarcerated Americans re-entering the job market.
  • Conducting listening sessions with criminal justice organizations and formerly incarcerated leaders to understand what specific supports are needed and consider how Google products can be used to raise awareness of the issue of mass incarceration in America.
  • Hosting a series of regional forums on criminal justice reform with formerly incarcerated women and men.

GREYSTON BAKERY: As part of our Fair Chance Pledge, we commit to:

  • Banning the Box – by delaying criminal history questions until later in the hiring process, or not asking them at all and giving individuals a chance to prove themselves through hard work regardless of background;
  • Training human resources staff on making fair decisions regarding applicants with criminal records, and other employment barriers, and reporting data on the number of applicants through Open Hiring;
  • Ensuring jobs, internships, apprenticeships, and regular and progressive job trainings are available to individuals with criminal records and other employment barriers;
  • Keeping an open door policy for Open Hiring for anyone to sign up for a chance at a job, when one becomes available; in the meantime, accessing workforce development trainings for employment readiness;
  • Providing mentorship and “soft-skills” support once on the job to ensure retention and readiness, particularly through the apprenticeship/internship period;
  • Supporting with placement to area employers from workforce development training programs whenever possible, through matching services and providing trainings in demand;
  • Providing key worker benefits past the apprenticeship period including: subsidized childcare, access to lower-cost nutritious food, and access to affordable housing, to address the highest risk factors of low-income workers and previously incarcerated individuals in sustaining employment;
  • Working to provide a “living wage” to all our workers in addition to subsidized worker benefits, to help those with employment barriers sustainably break the cycle of poverty.

Greyston also takes action in our local community of Yonkers, NY by supporting other employers in considering Open Hiring in their businesses, de-risking fair chance employment for them by investing in workforce development and job training programs, to increase overall regional employability and job readiness, including in “soft skills” such as literacy and numeracy, mentorship, etc.

Greyston also provides other community programs such as an early childcare center, community gardens, and housing supports for both worker benefit as well as community health and well-being, to truly contribute to sustained Fair Chance employment.

THE JOHNS HOPKINS HOSPITAL AND HEALTH SYSTEM: The Johns Hopkins Hospital and Health System’s (JHHS) practice of providing access and opportunity to the returning citizens of Baltimore is not a charitable endeavor, but a strategic part of the way we conduct our business. We are not just an organization that conducts business in Baltimore, but an integral part of the community — interwoven and connected for 126 years and counting.

When Mr. Hopkins endowed the Hospital, he recognized that the service we provide can only have a positive lasting impact if all members of the community are a part of JHHS mission. We have made sure to keep Mr. Hopkins’ directives, which in many ways mirror the Fair Chance Business Pledge, at the forefront of all that we do. This is evidenced in our hiring practice, which embraces our community’s citizens who meet our hiring requirements — including returning citizens.

We have banned the box in our hiring process and have an established practice of individually reviewing applicants that have criminal background. This thoughtful, detailed process has enabled us to have a strong returning citizen hire rate over the years.

Our long standing partnerships with community based partners, particularly those that serve returning citizens, and understand our organization and the work we do, provides us with a pipeline of talented applicants. We share our practices with other Baltimore City companies and encourage dialogue on the importance of engaging all of our citizens in the employment process.

Lastly, our organizations unwavering commitment to Baltimore City and Maryland is reflected in our Institution’s leadership, managerial and supervisory staff, who understand that we have a lot of talented people in our community. We recognize that we cannot afford to let good talent get away — especially talent that might need a second chance.

KOCH INDUSTRIES AND GEORGIA PACIFIC: Koch Industries and Georgia-Pacific support the Fair Chance Business Pledge and applaud the leadership of the White House on this critically important issue. The Pledge is consistent with Koch and Georgia-Pacific’s mission to help people improve their lives and remove barriers to opportunity for all Americans, especially the least advantaged.

We believe that we shouldn’t be rejecting people at the very start of the hiring process who may otherwise be capable and qualified, and want an opportunity to work hard.

LIBRA GROUP: The Libra Group believes strongly in the twin values of hope and opportunity. Investing in the community isn’t just a matter of ‘paying back’ with the fruits of commerce; it is good business in its own right. A community with hope and opportunity is one better equipped to contribute in tomorrow’s world. Part of our responsibility in running an international business is to actively give something back. We do this through a series of 10 managed programs and initiatives which are broadly linked to the themes of community support and assisting people who have been denied or have limited opportunity, including the formerly incarcerated. Some of these initiatives include:

  • Drive Change: Libra Group supports Drive Change and its mission to use the food truck workplace to run a 1-year Fellowship for young people returning home from prison so they can obtain preferred employment and educational opportunities. Our monetary and in-kind support, in the form of essential skills trainings have allowed Drive Change to:
    • Hire a part-time “Truck Coach” who will empower the young people in the program to gain the most from their entire Drive Change experience;
    • Host hospitality trainings to make sure the Fellows are receiving quality instruction that can drive their future career opportunities;
    • Support instructors in developing courses in work-place readiness, social media, marketing, money management and small business development;
    • Provide management training for Executive Staff.
  • Defy Ventures: Libra Group provides funding to Defy Ventures to support its mission of harnessing the natural talents of formerly incarcerated individuals and redirecting them towards the creation of profitable and legal business ventures.
  • Libra Internship Program: Libra Group Internships are a unique opportunity for bright, talented young people with proven leadership potential to undertake a paid placement of up to six months’ duration with the Libra Group and its subsidiaries around the world. We work with organizations such as LEDA (Leadership Enterprise for a Diverse America), SEO, Prep for Prep, Harlem Children’s Zone, Miami Dade College, Olivier Scholars and CUNY, who are dedicated to provide educational opportunities to students coming from disadvantaged backgrounds.

Through Libra’s Internship Program, we support the children of formerly incarcerated parents. We have hosted a number of students who have grown up with either one or both parents in the criminal justice system.

PEPSICO: We all have a vested interest in creating conditions that allow individuals with criminal convictions to succeed. Finding a job is often one of the biggest barriers to a second chance; that’s why PepsiCo is proud to sign the Fair Chance Business Pledge. A fair chance at a good job significantly increases an individual’s chances of successfully re-entering society while strengthening the communities we all share.

We already “ban the box” by eliminating criminal history questions on our employment applications and delaying a background check until after a conditional offer of employment has been made. In cases of a criminal background, we individually review each case to understand the relevancy of the conviction, time passed, evidence of rehabilitation and other factors. All candidates have the opportunity to tell their unique story and will not be eliminated from consideration based solely on the fact of a criminal conviction.

PepsiCo has a long history of promoting equal opportunity. We evaluate current and prospective employees solely on their qualifications, experience and performance – and we have zero tolerance for discrimination of any kind.

We will continue our efforts to create opportunities for formerly incarcerated Americans by working with community partners to provide job readiness training and support, such as Stanford Law School’s Justice Advocacy Project, an effort to assist individuals with navigating the challenges of reentry.

PRUDENTIAL FINANCIAL: Prudential Financial is proud to take the White House Fair Chance Business Pledge, building upon our long-standing commitment to equal opportunity. Our efforts to date have focused on establishing internal policies and supporting programs that rebuild communities and provide second chances to individuals and families.

Internally, Prudential is committed to inclusive hiring practices when it comes to recruiting and retaining the best talent. We post our open roles publicly and do not inquire about an individual’s criminal history until after an offer of employment is extended. If it is revealed that a candidate does have a criminal record, that does not in and of itself necessarily disqualify him/her.

Additionally, Prudential has provided nearly $50 million to support fair chance hiring policies by investing in businesses and organizations who have demonstrated a commitment to inclusive hiring practices. These practices include assisting individuals with criminal backgrounds through workforce training, which includes occupational skills training and workplace soft skills training, so that they can successfully re-enter the workforce.

STARBUCKS: Starbucks continues to encourage its partners (employees) and others to recognize the choices we, as organizations and as citizens, can each can make every day to see a different story for America. The Company believes that equal access to opportunities, for those willing to work hard and play fair, continues to be the promise of our country. In many ways, Starbucks is demonstrating responsible, compassionate ways to provide more individuals a second chance:

  • Ban the Box: Starbucks does not inquire about criminal histories on initial job applications and runs background checks only after a conditional offer of employment. The intent is to provide applicants with a criminal history the chance to be evaluated as a whole person by having their circumstances considered on a case-by-case basis.
  • Access to Opportunity: In partnership with like-minded organizations, Starbucks has come up with creative solutions to open doors for transitioning veterans, aspiring students seeking debt-free college degrees, and Opportunity Youth- 16-24 year olds who face systemic barriers to jobs and education.
  • 100,000 Opportunities Initiative: Supported by many of the country’s youth and opportunity-focused nonprofit organizations, local governments, and participating funders, the 100,000 Opportunities Initiative is an employer led coalition of over 30 companies committed to engaging at least 100,000 opportunity youth by 2018 through experiential job fairs, apprenticeships, internships, and both part-time and full-time jobs. Since August, Starbucks has already hired over 7,000 opportunity youth, and plans to host its next hiring fair in its hometown of Seattle in May.

UBER: Providing economic opportunities to those with certain offenses on their records is a way for Uber to help reentering citizens find a way to earn a living. Driving for the Uber platform is a great option for someone looking to get back on their feet: it’s easy to get started and completely flexible.

We believe that the right path forward is to tailor our driver screening process to focus on issues that are directly relevant to providing a safe and reliable ride. We also conduct a transparent, up-to-date, and fair assessment of who should be on the Uber platform and who shouldn’t. This ensures rider safety without excluding people who deserve a fair shot at work opportunities.

To that end, in California—where more than 100,000 people drive with Uber—we’ve committed to:

  • Notifying people who don’t pass Uber’s pre-screening process that they could be eligible for getting felonies on their records adjusted under Proposition 47 (which they only have until November 2017 to do) and pointing them to resources to help them do that.
  • Aligning our pre-screening process with Proposition 47 to give people with low-level, nonviolent convictions on their records the same economic opportunities as everyone else.
  • Referring people who still don’t qualify to Defy Ventures to get work and entrepreneurship training as well as mentoring and job placement assistance.

We look forward to making similar commitments across the country, and we’re pleased that already, our technology and our background check processes—which include screening through national, state, and local databases—are reliable and accurate without unnecessarily discriminating against minorities as fingerprint-based checks do. We’re excited to continue working with community groups and reentry organizations across the country to explore ways our policies and technology can make our screening process fair for everyone.

UNDER ARMOUR AND PLANK INDUSTRIES: Under Amour and Plank Industries want to commend the Administration for their leadership in promoting the Fair Business Pledge with employers across this country and we are proud to take the pledge across all of our businesses. This initiative serves as an important reminder that while we all seek to improve our economy and create jobs, we must also consider the barriers that prevent qualified individuals from joining the workforce.

Under Armour comes from very humble beginnings in Baltimore, Maryland. Today, we are a global brand in performance footwear, apparel and technology with nearly $4 billion in annual revenue employing 12,000 teammates in 28 offices across 18 countries. Baltimore is home to Under Armour, and as we grow, so will the opportunities in this great city.

While Under Armour continues to be a catalyst for economic activity in Baltimore, we believe there is even more we can do to grow the economy. Taking the Fair Business Pledge is just one example of how we can make our hiring practices more inclusive for some in our community. Through the Blocal initiative, we have also pledged to work with other business leaders in Baltimore to promote locally owned businesses, hire more from the local community, buy from local suppliers and continue to give back to our local communities.

As leaders in business, we all focus on creating economic opportunity. As leaders in our community, we should also consider how everyone can participate in the opportunities we create.

UNILEVER: Through the Unilever Sustainable Living Plan, Unilever is committed to enhancing livelihoods and creating a brighter future for all. We believe that businesses like ours can and should play an important role in generating wealth and jobs around the world, improving skills and offering access to markets. Fairness in the workplace is about respecting the rights of all those who work with us. Furthermore, business can only truly flourish in societies and economies where human rights are respected and upheld.

Several years ago, Unilever was one of the first companies to implement the “banning the box” policy, meaning that we no longer ask applicants to declare a criminal record prior to being invited to interview for a position. More recently, we decided that we will not conduct criminal background checks until a contingent offer has been made to a potential applicant. By taking these actions, Unilever is proud to be a signatory of the Fair Chance Business Pledge. We are committed to providing equal opportunities to individuals with criminal records a fair chance to participate in the American economy.

XEROX: Xerox is proud to join other corporate leaders in “banning the box.” Xerox is committed to fostering an environment where everyone can contribute and succeed at every level of the corporation.

Our outreach into diverse and broad employment markets for qualified individuals results in hiring our talented workforce and allows us to build and maintain an inclusive corporate culture. We strive continually to strengthen our work environment on an ongoing basis by valuing employees with different backgrounds and perspectives.

Dept of Energy Computers, ah Really Nuclear Management

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We often wonder just what kind of work the Department of Justice is doing if so many of the cases and crimes in the news never seem to have real consequences for the criminal…ahem Holder and Hillary.

Anyway, we will never know the scope of crimes that really do occur across the country and for sure those against the homeland from a foreign power or rogue actors.

There was the recent posting on this site about the industrial espionage or rather agricultural espionage by China against our farmers. Then there is the matter of drug cartels and money laundering.  For sure you can think of other cases and your comments are welcome.

Rarely do we understand the matter of cyber intrusions or attacks. The case noted below is but one such case.

Justice News

Department of Justice
U.S. Attorney’s Office
District of Columbia
FOR IMMEDIATE RELEASE
Monday, April 11, 2016

Former U.S. Nuclear Regulatory Commission Employee Sentenced To Prison for Attempted Spear-Phishing Cyber-Attack On Department of Energy Computers

            WASHINGTON – Charles Harvey Eccleston, 62, a former employee of the U.S. Department of Energy (DOE) and the U.S. Nuclear Regulatory Commission (NRC), was sentenced today to 18 months in prison on a federal charge stemming from an attempted e-mail “spear-phishing” attack in January 2015 that targeted dozens of DOE employee e-mail accounts.

The sentencing was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Channing D. Phillips of the District of Columbia, and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.

Eccleston pleaded guilty on Feb. 2, 2016, in the U.S. District Court for the District of Columbia, to one count of attempted unauthorized access and intentional damage to a protected computer.  In his guilty plea, Eccleston admitted scheming to cause damage to the computer network of the DOE through e-mails that he believed would deliver a computer virus to particular employees.  An e-mail spear-phishing attack involves crafting a convincing e-mail for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.

In addition to the prison time, U.S. District Judge Randolph D. Moss ordered Eccleston to forfeit $9,000, an amount equal to the sum the FBI provided to Eccleston during the course of the undercover investigation. Following his prison term, Eccleston will be placed on three years of supervised release.

“Eccleston’s sentence holds him accountable for his attempt to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent of allowing foreign nations to gain access to that information or to damage essential systems,” said Assistant Attorney General Carlin.  “One of our highest priorities in the National Security Division remains protecting our national assets from cyber intrusions.  We must continue to evolve and remain vigilant in our efforts and capabilities to confront cyber-enabled threats and aggressively detect, disrupt and deter them.”

“Charles Harvey Eccleston is a scientist and former government employee who was willing to betray his country and his former employer out of spite,” said U.S. Attorney Phillips.  “His attempts to sell access to sensitive computer networks demonstrate why the government must be so vigilant to prevent cyber-attacks. Thanks to the FBI, this defendant was apprehended before he could do any damage. Together with our law enforcement partners, we will continue to make the detection and prevention of cyber-crimes a top priority.”

“Today’s sentencing sends a powerful message that no one will be allowed to sabotage the U.S. Government’s cyber infrastructure or threaten our national security through the illicit sale of information to a foreign intelligence service,” said Assistant Director in Charge Abbate.  “The FBI will continue to investigate and pursue those who attempt to disclose sensitive knowledge about our nation’s information systems and bring them to justice.”

Eccleston, a U.S. citizen who had been living in Davao City in the Philippines since 2011, was terminated from his employment at the NRC in 2010.  He was detained by Philippine authorities in Manila, Philippines, on March 27, 2015, and deported to the United States to face U.S. criminal charges.  He has been in custody ever since.

According to court documents, Eccleston initially came to the attention of the FBI in 2013 after he entered a foreign embassy in Manila and offered to sell a list of over 5,000 e-mail accounts of all officials, engineers and employees of a U.S. government energy agency.  He said that he was able to retrieve this information because he was an employee of a U.S. government agency, held a top secret security clearance and had access to the agency’s network.  He asked for $18,800 for the accounts, stating they were “top secret.”  When asked what he would do if that foreign country was not interested in obtaining the U.S. government information the defendant was offering, the defendant stated he would offer the information to China, Iran or Venezuela, as he believed these countries would be interested in the information.

Thereafter, Eccleston met and corresponded with FBI undercover employees who were posing as representatives of the foreign country.  During a meeting on Nov. 7, 2013, he showed one of the undercover employees a list of approximately 5,000 e-mail addresses that he said belonged to NRC employees.  He offered to sell the information for $23,000 and said it could be used to insert a virus onto NRC computers, which could allow the foreign country access to agency information or could be used to otherwise shut down the NRC’s servers.  The undercover employee agreed to purchase a thumb drive containing approximately 1,200 e-mail addresses of NRC employees; an analysis later determined that these e-mail addresses were publicly available.  The undercover employee provided Eccleston with $5,000 in exchange for the e-mail addresses and an additional $2,000 for travel expenses.

Over the next several months, Eccleston corresponded regularly by e-mail with the undercover employees.  A follow-up meeting with a second undercover employee took place on June 24, 2014, in which Eccleston was paid $2,000 to cover travel-related expenses.  During this meeting, Eccleston discussed having a list of 30,000 e-mail accounts of DOE employees.  He offered to design and send spear-phishing e-mails that could be used in a cyber-attack to damage the computer systems used by his former employer.

Over the next several months, the defendant identified specific conferences related to nuclear energy to use as a lure for the cyber-attack, then drafted emails advertising the conference.  The emails were designed to induce the recipients to click on a link which the defendant believed contained a computer virus that would allow the foreign government to infiltrate or damage the computers of the recipients.  The defendant identified several dozen DOE employees whom he claimed had access to information related to nuclear weapons or nuclear materials as targets for the attack.

On Jan. 15, 2015, Eccleston sent the e-mails he drafted to the targets he had identified.  The e-mail contained the link supplied by the FBI undercover employee which Eccleston believed contained a computer virus, but was, in fact, inert.  Altogether, the defendant sent the e-mail he believed to be infected to approximately 80 DOE employees located at various facilities throughout the country, including laboratories associated with nuclear materials.

Eccleston was detained after a meeting with the FBI undercover employee, during which Eccleston believed he would be paid approximately $80,000 for sending the e-mails.

The investigation was conducted by the FBI’s Washington Field Office with assistance from the NRC and DOE.  The case is being prosecuted by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia and Trial Attorney Julie A. Edelstein of the National Security Division’s Counterintelligence and Export Control Section.  Trial Attorney Scott Ferber of the National Security Division’s Counterintelligence and Export Control Section assisted in the investigation of this matter.  The Department of Justice’s Office of International Affairs and the government of the Philippines also provided significant assistance.

Is there Anything the Chinese Wont Steal?

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In Iowa corn fields, Chinese national’s seed theft exposes vulnerability

ARLINGTON, Iowa (Reuters) – Tim Burrack, a northern Iowa farmer in his 44th growing season, has taken to keeping a wary eye out for unfamiliar vehicles around his 300 acres of genetically modified corn seeds.

Along with other farmers in this vast agricultural region, he has upped his vigilance ever since Mo Hailong and six other Chinese nationals were accused by U.S. authorities in 2013 of digging up seeds from Iowa farms and planning to send them back to China.

The case, in which Mo pleaded guilty in January, has laid bare the value — and vulnerability — of advanced food technology in a world with 7 billion mouths to feed, 1.36 billion of them Chinese.

Citing that case and others as evidence of a growing economic and national security threat to America’s farm sector, U.S. law enforcement officials are urging agriculture executives and security officers to increase their vigilance and report any suspicious activity.

But on a March 30 visit to Iowa, Justice Department officials could offer little advice to ensure against similar thefts, underlining how agricultural technology lying in open fields can be more vulnerable than a computer network or a factory floor.

“It may range down to traditional barriers like a fence and doing human patrols to making sure you get good visuals on what’s occurring,” Assistant Attorney General John Carlin, head of the Justice Department’s national security division, said when touring Iowa State University.

But agriculture sector executives say fences and guards are not feasible, due to the high cost and impracticality of guarding hundreds of thousands of acres.

Tom McBride, intellectual property attorney at Monsanto — one of the firms whose seeds were targeted by Mo — said it safeguards its genetically modified organism (GMO) technology by protecting its computers, patenting seeds and keeping fields like Burrack’s unmarked. Monsanto says it is not considering physical barriers like fences or guards.

The FBI and the U.S. Justice Department say cases of espionage in the agriculture sector have been growing since Mo was first discovered digging in an Iowan field in May 2011. Over the past two years, U.S. companies, government research facilities and universities have all been targeted, according to the FBI.

Although prosecutors were unable to establish a Chinese government link to Mo’s group, the case adds to U.S.-China frictions over what Washington says is increasing economic espionage and trade secret theft by Beijing and its proxies.

A U.S. law enforcement official told Reuters the agency looked for a connection between the Chinese government and the conspiracy carried out by Mo.

“In cases like this, we can see connections, but proving to the threshold needed in court requires that we have documents that the government has directed this,” the official said. “It’s almost impossible to get.”

A Chinese embassy spokesman in Washington, Zhu Haiquan, said he did not have detailed information on the Mo case but that China “stands firm” on the protection of intellectual property and maintains “constant communication and cooperation” with the U.S. government on the issue.

On his visit to Washington last September, President Xi Jinping reiterated China’s denial of any government role in the hacking of U.S. corporate secrets.

Mo, an employee of Chinese firm Kings Nower Seed, pleaded guilty to stealing seed grown by U.S. firms Monsanto, Dupont Pioneer and LG Seeds.

Prosecutors say he specifically targeted fields that grow the parent seeds needed to replicate GMO corn. The FBI says it suspects he was given the location by workers for the seed companies, but did not charge any employees.

DuPont Pioneer and LG Seeds declined to comment for this story.

Mo, whose case was prosecuted by the Justice Department as a national security matter rather than a simple criminal case, now faces a sentence of up to five years in prison. Five others charged in the case are still wanted by the FBI and are believed to have fled to China or Argentina. Charges were dropped against a sixth Chinese suspect.

NATIONAL SECURITY

The number of international economic espionage cases referred to the FBI is rising, up 15 percent each year between 2009 and 2014 and up 53 percent in 2015. The majority of cases reported involve Chinese nationals, the U.S. law enforcement official told Reuters. In the agriculture sector, organic insecticide, irrigation equipment and rice, along with corn, are all suspected to have been targeted, including by Chinese nationals, the official said.

Mo Hongjian, vice president of Kings Nower Seed’s parent company, Beijing Dabeinong Technology Group, declined to comment on the case or on the company’s connection with the Chinese government.

The parent firm is privately owned, but says it receives government money for research in “science and technology.”

China bans commercial growing of GMO grains due to public opposition to the technology and imports of GMO corn have to be approved by the agriculture ministry. Still, President Xi called in 2014 for China to innovate and dominate the technique, which promises high yields through resistance to drought, pests and disease.

In January, a Greenpeace report found some Chinese farmers are illegally growing GMO corn whose strains belong to companies including Monsanto, Syngenta and DuPont Pioneer.

Monsanto, which supplies Burrack’s seed, said it can block foreign groups who request to tour their lab and learning center in Huxley, Iowa. For the past few years, Monsanto says it has run its own background checks on Chinese delegations that ask for a tour, and, if they are approved, boosts security to be sure they do not steal anything or take pictures.

In Washington, U.S. senators have called for a review of the $43 billion deal by state-owned ChemChina to buy Swiss seed group Syngenta, which generates nearly a quarter of its revenue from North America.

Acquiring GMO seed and successfully recreating a corn plant would allow Chinese companies to skip over roughly eight years of research and $1.5 billion spent annually by Monsanto to develop the corn, the company says.

Burrack’s farm itself was not targeted by Mo, though he grows the Monsanto parent seed that the Chinese national was digging for. Burrack grows the corn in two fields in front of and behind his house where he can watch them, a small part of his 2,800-acre farm.

He said he is told by Monsanto where and when to plant the parent seed, but has never been told to keep what he is planting a secret.

“What no one seems to understand is that they’re stealing from people like me,” Burrack said. “They’re stealing the research that farmers pay for when they buy Monsanto seed.”

Navy LTC Accused of Spying and Prostitution

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Navy Officer Accused of Spying for Foreign Power Held Secretly for 8 Months

RTSA2O4

The amphibious assault ship USS Boxer transits the East Sea during Exercise Ssang Yong 2016 on March 8. It’s been revealed that a U.S. Navy officer accused of spying was held in secret for eight months.

The redacted charge sheet is here.

By Jeff Stein/Newsweek: A U.S. Navy officer accused of spying for an unidentified foreign power was secretly arrested last summer in an espionage investigation that is ongoing, authorities said Saturday.

The heavily redacted charge sheets say the unidentified officer gave secret information “relating to the national defense to representatives of a foreign government.” But the four-page document does not say exactly what information was provided, or for how long a period it was provided, how the information was transmitted or which nation it was provided to.

The multiple charges of espionage and attempted espionage, made public only on Friday, suggest the accused officer was under surveillance by Navy counterespionage agents for an extended period of time. The officer was arrested “about eight months ago,” according to a U.S. official who asked for anonymity in exchange for discussing some details of the case.

The name of the officer, a lieutenant commander who was assigned to a sensitive maritime patrol and reconnaissance group, is being withheld from the public “out of respect for the ongoing investigation” and the privacy rights of the accused, said the official.

The official did not rule out the possibility of further arrests in the case, which is being jointly pursued by both the FBI and Naval Criminal Investigative Service, or NCIS. The officer is being held in the Naval Consolidated Brig in Chesapeake, Va.

 

The officer’s unit “provides airborne anti-submarine warfare, anti-surface warfare and maritime intelligence, surveillance and reconnaissance operations from planes such as the P-8A Poseidon, P-3C Orion and unmanned MQ-4C Triton,” according to the Norfolk Virginian-Pilot newspaper. The command of the Maritime Patrol and Reconnaissance Force is headquartered at Hampton Roads Naval Support Activity in Norfolk, “although it’s not clear whether he was stationed there,” the paper said. The unit has wings at Jacksonville Naval Air Station in Florida, Whidbey Island Naval Air Station in Washington state and Marine Corps Base Hawaii.

The Navy’s charge sheet said the officer is accused of three counts of attempted espionage, three counts of making false official statements and five counts of communicating defense information “to a person not entitled to receive said information.” It also said the officer provided a false address when he was on leave “rather than the actual foreign destination,” and failed to report contacts with foreign nationals.

The Navy also accused the officer, “a married man,” of procuring prostitutes ”on divers occasions” and having sex with “a woman not his wife,” a violation of the Uniform Code of Military Justice, or UCMJ.

The dates of the alleged espionage, the identity of the foreign spy service—if any—and the foreign nationals involved will not likely be disclosed until and if the Navy prefers court martial charges against the accused.

Adm. Philip S. Davidson, commander of Fleet Forces Command, will weigh the results of an Article 32 investigation, the military’s version of a grand jury, to determine whether a court martial is warranted.

The accused officer could face the death penalty if found guilty of the most serious espionage charges.

Under the UCMJ, a service member is eligible for the death penalty for espionage if found “guilty of an offense that directly concerns nuclear weaponry, military spacecraft or satellites, early warning systems, or other means of defense or retaliation against large scale attack, war plans, communications intelligence or cryptographic information, or any other major weapons system or major element of defense strategy.”

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InquisitR: A U.S. Navy officer was charged with giving secrets to China and prostitution at the Norfolk Air Station in Virginia. It is believed that Lieutenant Commander Edward Lin gave secrets about vital communications systems, although the Navy has yet to determine how much and for how long.

CBS News reported that the Navy officer charged worked as a flight officer on an EP-3E Reconnaissance, a sensitive intelligence gathering aircraft. Lin is alleged to have given information on the aircraft’s communications system. The information he gave could be used to counter U.S. eavesdropping capabilities.  Additional details here.

The heavily redacted documents released accused Lieutenant Commander Edward Lin of five counts of espionage and attempted espionage, three counts of making false official statements, and five counts of communicating information to a person not authorized to receive it.

Dewey Clarridge Died, What More you Need to Know

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Personally, I have been talking about the matter of the Saudis and the Pakistanis nuclear weapons program.

By the way, the New York Times had no use for Clarridge.

Duane R. Clarridge, Brash Spy Who Fought Terror Networks, Dies at 83

Mark Mazzetti

New York Times

April 11, 2016

Duane R. Clarridge, a pugnacious American spy who helped found the C.I.A.’s Counterterrorism Center, was indicted and later pardoned for his role in the Iran-contra scandal, and resumed his intelligence career in his late 70s as the head of a private espionage operation in Afghanistan and Pakistan, died on Saturday in Leesburg, Va. He was 83.

His lawyer, Raymond Granger, said the cause was complications of laryngeal and esophageal cancer.

Mr. Clarridge was an unflinching champion of a brawny American foreign policy and of the particular role played by the C.I.A.’s clandestine service — a cadre he likened to a secret army that “marches for the president” and ought to be subjected to as little outside scrutiny as possible.

Mr. Clarridge, widely known by his nickname Dewey, delighted in the role of rogue. He often arrived at work in white Italian suits or safari jackets and bragged to other C.I.A. officers about the brilliant ideas he had conceived while drinking the previous night.

“If you have a tough, dangerous job, critical to national security, Dewey’s your man,” Robert M. Gates, the former director of central intelligence and later defense secretary, was quoted as saying in “Casey,” a 1990 biography of William J. Casey, the Central Intelligence Agency’s chief during the Reagan administration, by Joseph E. Persico. “Just make sure you have a good lawyer at his elbow — Dewey’s not easy to control.”

He spent years overseas as an undercover officer, but perhaps his most consequential effort at the spy agency was the creation of the Counterterrorism Center (then called the Counterterrorist Center) in 1986 after a string of attacks the previous year, including the hijacking of TWA Flight 847 and the massacres at El Al ticket counters in Rome and Vienna carried out by the Abu Nidal Organization.

Up to that point, the C.I.A. had devoted little effort to understanding international terrorism, and Mr. Clarridge persuaded Mr. Casey to create the center with an unusual arrangement: having undercover spies and intelligence analysts working together to try to dismantle terrorist networks. Within a year, C.I.A. operations had significantly weakened the Abu Nidal organization.

Since the terrorist attacks of Sept. 11, 2001, the Counterterrorism Center has grown into a behemoth, the heart of a spy agency transformed by years of terrorist hunting.

Mr. Clarridge’s efforts against international terrorism came as he was becoming ensnared by investigations into the Reagan administration’s efforts to use proceeds from secret arms sales to Iran to arm the contras, a Nicaraguan rebel group battling troops of the country’s socialist government, known as the Sandinistas.

Mr. Clarridge had been in charge of the C.I.A.’s covert war in Nicaragua in the early 1980s (he told his colleagues that his idea to mine the harbors of Nicaragua in 1983 came while he was drinking gin at home) and had developed a close relationship with Lt. Col. Oliver North, who was running the Iran-contra operation from his perch at the National Security Council.

According to the final report by Lawrence E. Walsh, the independent counsel investigating the Iran-contra affair, Mr. Clarridge testified that he had no knowledge that cargo ships sent to Iran to help secure the release of American hostages contained any weapons. He also denied trying to solicit money from foreign countries to circumvent a congressional prohibition against financing the contras.

“In both instances,” the report said, “there was strong evidence that Clarridge’s testimony was false.”

He was indicted on a charge of perjury in 1991, three years after he had retired from the agency. President George Bush pardoned him on Christmas Eve 1992, along with five other Iran-contra figures. He had the pardon framed, and he eventually hung it in the front hallway of his home near San Diego so it would be the first thing visitors saw upon entering his house.

But the scandal embittered him, and he used his 1997 memoir, “A Spy for All Seasons,” to settle some old scores. He lamented in the book that the C.I.A. had lost its swagger since the end of the Cold War, becoming a risk-averse organization that was beholden to lawyers and was degenerating “into something resembling the style, work ethic and morale of the post office.”

He joined the C.I.A. in 1955, after getting degrees from Brown and Columbia, and served undercover  in Nepal, India and Italy before being promoted to run the Latin America division in 1981.

He is survived by a daughter, Cassandra; two sons, Ian and Tarik; and five grandchildren. His first marriage ended in divorce; his second wife, Helga, died before him.

More than two decades after his retirement from the C.I.A., Mr. Clarridge began working as a government contractor when military officials in Kabul hired him and a small team to gather information about militant groups in Afghanistan and Pakistan. Using sources in the region — he identified them only by cover names, such as Waco and Willi — he would turn their field dispatches into reports he sent to the military command by encrypted email.

Mr. Clarridge worked for a security firm hired by The New York Times in December 2008 to assist in seeking the release of a reporter, David Rohde, who had been kidnapped by the Taliban. Mr. Rohde escaped on his own seven months later, but Mr. Clarridge used his role in the episode to promote his spy network to military officials.

The Pentagon canceled the contract in 2010 after the private spying operation was revealed.

But two years later, after Mr. Clarridge had moved into a retirement home in Northern Virginia, he told a reporter that he still had his “network” intact for the future.

In November 2015, Mr. Clarridge was back in the news when The Times identified him as an adviser to Ben Carson, the retired neurosurgeon and Republican candidate for president, who had come under criticism for statements he made about foreign affairs during debates. Asked about the candidate’s foreign policy acumen, Mr. Clarridge was typically impolitic.

“Nobody has been able to sit down with him and have him get one iota of intelligent information about the Middle East,” he said.