Biden’s Americore Under FBI Investigation

Biden, Inc., or James Biden in deep legal trouble.

Joe Biden’s Brother Accused of Defrauding Rural Healthcare ...

FBI got a search warrant and raided the office….

The Federal Bureau of Investigation raided a health care business linked to Joe Biden’s brother in late January, seizing boxes of documents.

The raid of an Americore Health hospital represented a deepening of the legal morass surrounding James Biden’s recent venture into health care investing at a time when questions about the business dealings of Joe Biden’s relatives, and their alleged connection to the former vice president’s public service, continue to dog his presidential campaign.

In the weeks since the raid, two small medical firms that did business with James Biden have claimed in civil court proceedings to have obtained evidence that he may have fraudulently transferred funds from Americore “outside of the ordinary course of business,” and a former Americore executive has told POLITICO that James Biden had more than half a million dollars transferred to him from the firm as a personal loan that has not yet been repaid.

The purpose of the Jan. 30 raid of an Ellwood City, Pa., hospitalremains unclear, and there is no indication it was related to the actions of Biden’s younger brother, who has not been accused of criminal wrongdoing. Its owner, Americore, has faced legal problems and allegations of mismanagement that are unrelated to James Biden.

But recent filings in ongoing legal proceedings, along with new accounts provided to POLITICO by former executives of Americore and others, point to potential pitfalls for the former vice president, painting the fullest picture to date of James Biden’s health care dealings and the ways in which they allegedly related to his older brother. In 2017 and 2018, James Biden was embarking on a foray into health care investing, telling potential partners, including at Americore, that his last name could open doors and that Joe Biden was excited about the public policy implications of their business models, according to court filings and interviews with James’ former business contacts.

Tom Pritchard, a former Americore executive familiar with the business’ finances, told POLITICO that James Biden’s arrival exacerbated Americore’s financial problems. Holding out the promise of a large investment from the Middle East based on his political connections, James Biden introduced Americore’s founder to his older brother and helped land a bridge loan to Americore from a hedge fund, Pritchard said. But then, Pritchard said, James Biden received a six-figure personal loan out of Americore’s coffers while encouraging the firm to take on greater financial liabilities. The cash infusion from the Middle East never arrived, and, Pritchard says, James Biden has not paid back the loan, the terms of which are unknown.

“It was all smoke and mirrors,” Pritchard said.

Meanwhile, Americore found itself increasingly hamstrung by high-interest loans and unable to pay employees and vendors, a situation that disrupted the operations of the rural hospitals it owns.

Now, the business is in bankruptcy court, and federal authorities are circling.

David Randolph Smith, an attorney for James Biden, declined to comment.

A Biden campaign official said that Joe Biden never discussed Americore with his brother or expressed support for the business. The official said that Americore’s founder, Grant White, purchased a ticket to a September 2017 fundraiser for the Beau Biden Foundation, an event attended by Joe Biden. “If the two interacted in any way, it would have been a handshake and nothing more,” the official said.

The messy politics surrounding the business dealings of Biden’s relatives, and President Donald Trump’s efforts to exploit them, have loomed over the presidential contest for several months, damaging both camps. Trump’s failed attempts to pressure Ukraine’s government to announce an investigation of Biden and his son, Hunter, led to Trump’s impeachment. Though Trump was acquitted by the Republican-controlled Senate, polls showed that a plurality of Americans consistently supported the impeachment, which highlighted evidence that Trump abused his power for partisan political ends. At the same time, a recent POLITICO/Morning Consult poll found that 57 percent of voters believe Hunter Biden’s well-compensated position on the board of a Ukrainian energy firm amounted to a scandal, compared to 19 percent who do not.

Over the course of Biden’s run, reports have trickled out about James, a sometimes business partner of Hunter’s, who has received financial support from people with an interest in influencing Joe and been repeatedly accused of trading on Joe’s clout to advance his business ventures.

Biden has defended his son Hunter and said that his relatives’ business dealings have had no connection to his official duties. But the recent developments related to James Biden’s health care ventures demonstrate that as long as Biden remains in the campaign, the issue of his relatives’ financial dealings is likely to remain as well.

Even before the development surrounding Americore, James Biden’s venture into health care investing has been surrounded by legal allegations and claims that he invoked his brother’s clout.

Last year, two medical services firms jointly sued James Biden and his business partners in federal court in Tennessee, alleging James and his partners promised to provide a large investment from the Middle East, then pushed the firms to make expensive acquisitions, as part of a scheme to drive them out of business and steal their business models. As previously reported, those firms alleged that James Biden cited his family’s political connections and promised his older brother would promote their health care model as part of his 2020 presidential campaign.

Another health care firm sued Platinum Global Partners — a Florida corporation that lists James and his wife Sara as managers — in Palm Beach County in June. The firm, which makes an oral rinse with applications for cancer patients, alleged that Platinum reneged on an agreement to invest in it and requested that Platinum turn over documents related to the Biden Cancer Initiative, a nonprofit founded by Joe Biden to fund medical research. An executive involved in litigation against James Biden previously told POLITICO that, on a call, James said he could get the Biden Cancer Initiative to promote the oral rinse.

The Tennessee case is ongoing. The Palm Beach County case was dismissed without prejudice in November.

James Biden and his partners have denied the central allegations in both cases.

But, in interviews, former executives of Americore offered additional, similar accounts of James Biden invoking his brother’s influence and the promise of investment funds from the Middle East that never materialized in order to push their firm to grow quickly, taking on new financial liabilities.

Unlike those other firms, Americore is now in the sights of the Justice Department.

The precise nature of James Biden’s relationship to the firm — founded by White, a Canadian investment banker, in 2017— is contested.

The plaintiffs in the Tennessee case described him as a principal of Americore and entered a business card identifying him as such into evidence. James Biden has disputed that he is a principal of the firm in court proceedings, though he has not detailed the precise nature of his ties to Americore,which owns hospitals in Pennsylvania, Arkansas and Missouri.

Pritchard and the other former Americore executive, who spoke on condition of anonymity out of fear of retaliation, each said James Biden was actively involved in the company during their tenures there. “Jim was operating as a principal or Jim was portraying that,” Pritchard said. “Whether on paper he had any ownership, I’m not 100 percent sure.”

Pritchard said James Biden first became involved with Americore in 2017, offering to use his political contacts to help the firm land business and investments. “He could get us in front of the unions. He could get us in front of certain people in government. He could get us in front of the right people,” recalled Pritchard, who said he was skeptical of plans to involve James Biden in the firm.

A former employee at Pineville Community Hospital in southeastern Kentucky, which was acquired by Americore in 2017, said she got the impression that James Biden was in a top leadership role at Americore when he visited the facility and introduced himself in early 2018.

The other former Americore executive — who left the firm after less than a year over concerns about its business practices that were unrelated to James Biden — recalled that James spoke regularly of the ways in which Joe Biden’s presidential aspirations could benefit the firm, and vice versa. “His brother was very interested in rural health care and very interested in veterans’ health care, and it was something he really wanted to get behind,” the former executive recalled James Biden saying. “This would help his brother get elected if it were to take off and go.”

Both former executives recalled James Biden said he would help facilitate a multimillion-dollar investment from the Middle East.

Pritchard said the exact source of the funds was never made clear to him. “That linkage was supposed to come via Jim Biden via whatever influence he had through his brother in the Middle East,” said the other former executive, who worked for Americore in 2018.

The plaintiffs in the Tennessee case allege James Biden and his partners aimed to solicit investments from the state-owned Qatar Investment Authority and met in West Palm Beach with representatives of the Turkish conglomerate Dogan Holding. James Biden and his co-defendants denied the allegation about the Qatar Investment Authority and acknowledged meeting with Dogan.

The former executives also said that James Biden began to set up an office on the second floor of Americore’s headquarters in Fort Lauderdale, Fla. “It was like a little shrine to him and his brother and [former President Barack] Obama,” recalled Pritchard, who said he clashed with James Biden over James’ requests to be reimbursed for pricey furniture for the office.

The other former executive said that when he saw the office, several framed photos of the Biden brothers and foreign dignitaries sat on the floor, ready to be hung on the walls.

The former executives also described James Biden’s role in soliciting financing for Americore.

Pritchard said James Biden arranged a bridge loan to Americore via his business partner Michael Lewitt’s hedge fund, the Third Friday Total Return Fund.

But Pritchard said he learned that after Americore received the bridge loan, it made a six-figure loan to James Biden for his personal use.

Lewitt declined to comment, but referred to a letter he sent the Ellwood City Ledger blaming White’s alleged use of high-interest loans for Americore’s problems and vowing to restore the firm’s finances and operations.

Several Americore entities are currently in the midst of federal bankruptcy proceedings, providing a glimpse into their finances.In February, one of those entities, Americore Health LLC, filed a schedule of assets that included $650,000 due to accounts receivable. Pritchard said that figure referred to the loan repayment owed by James Biden.

Pritchard said that after James Biden received his loan payment from Americore, James reduced his involvement with the firm as its financial difficulties mounted.

“Jim needed to lay low because his brother was possibly running for president, and he didn’t need any bad press,” Pritchard recalled, saying that after James stepped back, Lewitt asked to review Americore corporate documents to ensure they did not bear James’ name.

The other former executive said that not long after he first saw the office being set up for James Biden in mid-2018, the office was emptied out.

Meanwhile, Americore’s problems have increasingly spilled into public view.

 

4 on Trial for Shooting Down MH17

FOR THE 298 victims of Malaysian Airlines flight MH17, shot down by a Russian Army missile over Ukraine in 2014, even a hint of justice has been a long time coming. But each year, investigators and prosecutors edge the case forward. On March 9th a court in the Netherlands will commence the criminal trial of four men (three Russians and one Ukrainian) accused of playing crucial roles in the decision to fire the missile. The hearing will be held in a courtroom next to Schiphol airport in Amsterdam, from where the flight to Kuala Lumpur took off. The defendants will be absent, though at least one will be represented by lawyers, since Russia does not extradite its own nationals and the location of the Ukrainian is unknown. But the biggest absence of all will be that of the Russian government, which bears the ultimate responsibility for supplying, and probably firing the missile.

Russia says its input into MH17 crash over Ukraine ignored ...

Dutch prosecutors say their case runs to 30,000 pages of documentation. After the crash, a research unit called the Joint Investigative Team (JIT)—including investigators from the Netherlands, Australia, Belgium, Malaysia and Ukraine—spent five years meticulously establishing what had happened. The plane’s wreckage was shipped to the Netherlands and reconstructed. Ballistics experts established that it had been shot down by a Russian-made BUK anti-aircraft missile. Mobile-phone conversations intercepted by the SBU (Ukraine’s secret police) appeared to show that Russian military personnel detailed to help pro-Russian separatists in Donbass had directed the operation.

 

Meanwhile Bellingcat, a digital-forensics group, collected thousands of public-source records from ordinary citizens’ smartphone pictures and dashboard cameras. These showed a convoy including a BUK launcher driving from a Russian army base to the Ukrainian border in the days before MH17 was shot down, and returning just afterwards with one missile missing. The JIT later confirmed Bellingcat’s research, and recovered the spent fuselage of a BUK missile from a field in Ukraine. In 2018 the JIT’s prosecutors announced they had determined that the missile belonged to the Russian army’s 53rd Anti-aircraft Brigade.

The men now facing trial all played important roles in Donbass’s rebel militias in 2014. The most senior, Igor Girkin (also known as “Strelkov”), a Russian nationalist and former army officer, was the minister of defence of the self-proclaimed Donetsk People’s Republic. He maintains his innocence. Sergei Dubinski and Oleg Pulatov, both Russian, and Leonid Kharchenko, a Ukrainian, served in the rebels’ military-intelligence unit. They are accused of having played command roles, rather than of firing the rocket themselves. It is unclear how they will plead or even whether they will respond to the charges. The SBU’s mobile-phone recordings allegedly include two of the defendants conversing with senior Russian officials. No one believes they intended to shoot down an airliner. Rather, the theory is that they assumed the plane belonged to the Ukrainian air force and did not bother to check.

Russia denies having anything to do with the downing of MH17 or giving support to the Donbass rebels. Since the crash it has issued a stream of disinformation and (often conflicting) alternative theories of what happened. The Russian defence ministry released supposed radar data of the incident showing a second aircraft, perhaps a Ukrainian fighter. When the data were shown to have been faked, the ministry never spoke of it again. Last summer after Ukraine captured Vladimir Tsemakh, allegedly an air-defence specialist for the rebels, Russia insisted he be included in a prisoner exchange (an odd demand given that it claims never to have supported the separatists). He was sent to Russia over Dutch objections, and is now believed to be living in Donbass again.

Rebels stall as MH17 bodies left to rot source

The trial’s first days will be devoted to procedural issues, and the defendants’ absence will rob the scene of drama. But although much of the evidence is already public, Dutch prosecutors are thought to have much more unrevealed information which will come out at trial. The trial is expected to last at least for the rest of the year. Even if it results in convictions in absentia, Russia is highly unlikely to change its mind about extraditing the accused men.

Yet while the defendants may not be present, the families of those who died on Flight MH17 will be. Time has been allotted for them to make statements to the court. Russia’s strategy of obstruction and obfuscation has frustrated their demands for justice, but the trial may provide closure for some.

Details of Bernie Sanders and Yaroslavl, the Sister City

One has to travel to Russia and visit the archives in Yaroslavl to see the full details of the trip then Mayor of Burlington, Vermont Bernie Sanders took for his honeymoon.

WaPo

IN part from the NYT’s: Many of the details of Mr. Sanders’s Cold War diplomacy before and after that visit — and the Soviet effort to exploit Mr. Sanders’s antiwar agenda for their own propaganda purposes — have largely remained out of sight.

The New York Times examined 89 pages of letters, telegrams and internal Soviet government documents revealing in far greater detail the extent of Mr. Sanders’s personal effort to establish ties between his city and a country many Americans then still considered an enemy despite the reforms being initiated at the time under Mikhail S. Gorbachev, the Soviet general secretary.

They also show how the Kremlin viewed these sister city relationships as vehicles to sway American public opinion about the Soviet Union.The Sanders campaign didn’t dispute the documents’ authenticity; the English-language documents were shared with the campaign and the relevant Russian documents were described. At the time of Mr. Sanders’s announcement in 1987 that Burlington would seek a Soviet sister city, several dozen other American cities already had such a relationship or had applied for one.

The documents, available at the Yaroslavskaya Region State Archive in Yaroslavl, are included in a file titled “documents about the development of friendly relations of the city of Yaroslavl with the city of Burlington in 1988.”

Mr. Sanders’s involvement in the Cold War debate grew in the 1980s as he forcefully opposed the Reagan administration’s plans to have Burlington and other American cities make evacuation plans for a potential nuclear war.

Instead, Mr. Sanders reached out to the Soviet Union via an organization based in Virginia, requesting a sister-city partnership with the Cold War adversary in an effort to end the threat of nuclear annihilation. In December 1987, the records show, Mr. Sanders spoke by phone with Yuri Menshikov, the secretary of the Soviet sister-city organization in Moscow. In a follow-up letter later that month, Mr. Sanders said he had received word that Yaroslavl would be an ideal partner. He proposed leading a Burlington delegation to Yaroslavl to lay the foundation for a sister-city relationship.

He suggested arriving on May 9 — the day that the Soviet Union celebrated its victory over Nazi Germany — and said he was especially interested in discussing economic development, the police, winter street cleaning, libraries, and plumbing and sewer systems. “People there seemed reasonably happy and content,” Mr. Sanders told reporters in Burlington about Yaroslavl, a city of about 600,000. “I didn’t notice much deprivation.”

Two days after returning to Vermont, Mr. Sanders wrote to the Soviet Embassy in Washington, asking for help in setting up the sister-city program.

“It is my strong belief that if our planet is going to survive, and if we are going to be able to convert the hundreds of billions of dollars that both the United States and the Soviet Union are now wasting on weapons of destruction into areas of productive human development, there is going to have to be a significant increase in citizen-to-citizen contact,” Mr. Sanders wrote. The sister city program was something of a capstone to nearly a decade’s worth of foreign policy activism in Burlington City Hall. As mayor, Mr. Sanders championed a range of international causes that often aligned him with left-wing movements and leaders in other countries, and against the Reagan administration, which he described as pursuing a strategy of military escalation that risked setting off a nuclear war.

Mr. Sanders pressed the city government to take positions against American intervention in Nicaragua and El Salvador, and against the invasion of Grenada. In 1985, he visited Managua for the sixth anniversary of the Sandinista revolution and met with its leader, Daniel Ortega. To read the full article from the NYT’s, click here.

***

Just a lil more from Politico:

Bruce Seifer, a top economic development aide to Sanders when he was mayor, said that 100 residents from Yaroslavl immigrated to Burlington after the trip and others visited.

“Over time, it had a positive impact on to the economy,” he said. “Businesses started doing exchanges between Burlington and Yaroslavl.”

Davitian, who lived in Burlington at the time, said progressives were thrilled by Sanders’ trip to the Soviet Union, while everyday residents didn’t mind. “As long as the streets were getting paved, there wasn’t opposition to him as an activist mayor,” she said.

When Sanders’ delegation returned to Burlington, CCTV captured the group on film in a hopeful mood, applauding the Soviet Union’s after-school programs, low rent costs and hospitality.

At the same time, they admit the poor choices of available food. Sanders says he was impressed by the beauty of the city and Soviet officials’ willingness “to acknowledge many of the problems that they had.”

“They’re proud of the fact that their health care system is free,” he says, but concede that the medical technology is far behind that of the United States.

Later that year, the relationship was officially established. Since then, “exchanges between the two cities have involved mayors, business people, firefighters, jazz musicians, youth orchestras, mural painters, high school students, medical students, nurses, librarians, and the Yaroslavl Torpedoes ice hockey team,” according to Burlington’s city government. A delegation traveled there as recently as 2016.

***

One last thing from National Review to consider:

Sanders made further globe-trotting expeditions to socialist countries. He visited Cuba, scoring a meeting with Havana’s mayor. In 1985 he attended the celebrations marking the sixth anniversary of the Sandinista revolution in Nicaragua. “In a letter addressed to the people of Nicaragua, penned in conjunction with that trip, Sanders denounced the activities of the Reagan administration, which he said was under the influence of large corporations,” the Guardian notes. “In the long run, I am certain that you will win,” Sanders wrote, “and that your heroic revolution against the Somoza dictatorship will be maintained and strengthened.” (The Sandinistas were ousted by Nicaragua’s voters in 1990).

Sanders isn’t the only radical U.S. politician to have a weakness for Communist dictatorships. In 2013, Bill de Blasio was caught off guard during his campaign for New York mayor when a Cuban-American radio host challenged him about Castro’s regime.

Ino Gómez, who fled Cuba in 1970, asked de Blasio in an interview about what he was thinking when he chose to violate U.S. law and spend his honeymoon in Cuba in 1991.

“What did you see in Cuba? What is your impression going on a honeymoon in a country that hasn’t had free elections in the last 50 years? What did you get from that trip?” Gómez asked.

A defensive de Blasio sputtered: “I didn’t go on a trip to study the country. I don’t pretend to have full perspective of the country.” He then acknowledged Cuba is undemocratic but praised “some good things that happened — for example, in health care.”

Gomez was having none of it. “I just had to send my aunt in Cuba some, you know, the thread to have stitches, because they don’t have in Cuba the thread,” he told the future mayor of Gotham.

De Blasio chose not to reply and the host moved on to other topics, giving him a pass on his 1988 trip to Nicaragua in support of the Sandinistas.

Bill de Blasio to endorse Bernie Sanders

In closing, remember that New York Mayor de Blasio is campaigning for Sanders…gotta wonder if all this is well known to the gigantic grass-roots operation Sanders has built for his presidential campaign.

 

Gadgets for Tech Giants Made with Coerced Uighur Labor

NANCHANG, China (AP) — In a lively Muslim quarter of Nanchang city, a sprawling Chinese factory turns out computer screens, cameras and fingerprint scanners for a supplier to international tech giants such as Apple and Lenovo. Throughout the neighborhood, women in headscarves stroll through the streets, and Arabic signs advertise halal supermarkets and noodle shops.

In this June 5, 2019, photo, residents of the Hui Muslim ethnic minority walk in a neighborhood near an OFILM factory in Nanchang in eastern China’s Jiangxi province. The Associated Press has found that OFILM, a supplier of major multinational companies, employs Uighurs, an ethnic Turkic minority, under highly restrictive conditions, including not letting them leave the factory compound without a chaperone, worship, or wear headscarves. (AP Photo/Ng Han Guan)

Yet the mostly Muslim ethnic Uighurs who labor in the factory are isolated within a walled compound that is fortified with security cameras and guards at the entrance. Their forays out are limited to rare chaperoned trips, they are not allowed to worship or cover their heads, and they must attend special classes in the evenings, according to former and current workers and shopkeepers in the area.

The connection between OFILM, the supplier that owns the Nanchang factory, and the tech giants is the latest sign that companies outside China are benefiting from coercive labor practices imposed on the Uighurs, a Turkic ethnic group, and other minorities.

Over the past four years, the Chinese government has detained more than a million people from the far west Xinjiang region, most of them Uighurs, in internment camps and prisons where they go through forced ideological and behavioral re-education. China has long suspected the Uighurs of harboring separatist tendencies because of their distinct culture, language and religion.

When detainees “graduate” from the camps, documents show, many are sent to work in factories. A dozen Uighurs and Kazakhs told the AP they knew people who were sent by the state to work in factories in China’s east, known as inner China — some from the camps, some plucked from their families, some from vocational schools. Most were sent by force, although in a few cases it wasn’t clear if they consented.

Workers are often enrolled in classes where state-sponsored teachers give lessons in Mandarin, China’s dominant language, or politics and “ethnic unity.” Conditions in the jobs vary in terms of pay and restrictions.

At the OFILM factory, Uighurs are paid the same as other workers but otherwise treated differently, according to residents of the neighborhood. They are not allowed to leave or pray – unlike the Hui Muslim migrants also working there, who are considered less of a threat by the Chinese government.

“They don’t let them worship inside,” said a Hui Muslim woman who worked in the factory for several weeks alongside the Uighurs. “They don’t let them come out.”

“If you’re Uighur, you’re only allowed outside twice a month,” a small business owner who spoke with the workers confirmed. The AP is not disclosing the names of those interviewed near the factory out of concern for possible retribution. “The government chose them to come to OFILM, they didn’t choose it.”

The Chinese government says the labor program is a way to train Uighurs and other minorities and give them jobs. The Chinese Ministry of Foreign Affairs on Monday called concern over possible coerced labor under the program “groundless” and “slander.”

However, experts say that like the internment camps, the program is part of a broader assault on the Uighur culture, breaking up social and family links by sending people far from their homes to be assimilated into the dominant Han Chinese culture.

“They think these people are poorly educated, isolated, backwards, can’t speak Mandarin,” said James Leibold, a scholar of Chinese ethnic policy at La Trobe University in Melbourne. “So what do you do? You ‘educate’ them, you find ways to transform them in your own image. Bringing them into the Han Chinese heartland is a way to turbocharge this transformation.”

OFILM’s website indicates the Xinjiang workers make screens, camera cover lenses and fingerprint scanners. It touts customers including Apple, Samsung, Lenovo, Dell, HP, LG and Huawei, although there was no way for the AP to track specific products to specific companies.

Apple’s most recent list of suppliers, published January last year, includes three OFILM factories in Nanchang. It’s unclear whether the specific OFILM factory the AP visited twice in Nanchang supplies Apple, but it has the same address as one listed. Another OFILM factory is located about half a mile away on a different street. Apple did not answer repeated requests for clarification on which factory it uses.

In an email, Apple said its code of conduct requires suppliers to “provide channels that encourage employees to voice concerns.” It said it interviews the employees of suppliers during annual assessments in their local language without their managers present, and had done 44,000 interviews in 2018.

Lenovo confirmed that it sources screens, cameras, and fingerprint scanners from OFILM but said it was not aware of the allegations and would investigate. Lenovo also pointed to a 2018 audit by the Reliable Business Alliance in which OFILM scored very well.

All the companies that responded said they required suppliers to follow strict labor standards. LG and Dell said they had “no evidence” of forced labor in their supply chains but would investigate, as did Huawei. HP did not respond.

OFILM also lists as customers dozens of companies within China, as well as international companies it calls “partners” without specifying what product it offers. And it supplies PAR Technology, an American sales systems vendor to which it most recently shipped 48 cartons of touch screens in February, according to U.S. customs data obtained through ImportGenius and Panjiva, which track shipping data.

PAR Technology in turn says it supplies terminals to major chains such as McDonald’s, Taco Bell, and Subway. However, the AP was unable to confirm that products from OFILM end up with the fast food companies.

McDonald’s said it has asked PAR Technology to discontinue purchases from OFILM while it launches an immediate investigation. PAR Technology also said it would investigate immediately. Subway and Taco Bell did not respond.

A report Sunday from the Australian Strategic Policy Institute, researched separately from the AP, estimated that more than 80,000 Uighurs were transferred from Xinjiang to factories across China between 2017 and 2019. The report said it found “conditions that strongly suggest forced labor” consistent with International Labor Organization definitions.

The AP also reported a year ago that Uighur forced labor was being used within Xinjiang to make sportswear that ended up in the U.S.

___

FROM FARMERS TO FACTORY WORKERS

Beijing first sent Uighurs to work in inland China in the early 2000s, as part of a broad effort to push minorities to adopt urban lifestyles and integrate with the Han Chinese majority to tighten political control.

At first the program targeted young, single women, because the state worried that Uighur women raised in pious Muslim families didn’t work, had children early and refused to marry Han men. But as stories of poor pay and tight restrictions trickled back, police began threatening some parents with jail time if they didn’t send their children, six Uighurs told the AP.

The program was halted in 2009, when at least two Uighurs died in a brawl with Han workers at a toy factory in coastal Guangdong province. After peaceful protests in Xinjiang were met with police fire, ethnic riots broke out that killed an estimated 200 people, mostly Han Chinese civilians.

An AP review of Chinese academic papers and state media reports shows that officials blamed the failure of the labor program on the Uighurs’ language and culture. So when the government ramped up the program again after the ascent of hardline Chinese President Xi Jinping in 2012, it emphasized ideological transformation.

A paper drafted by the head of the Xinjiang statistics bureau in 2014 said the Uighurs’ poor Mandarin made it hard for them to integrate in inner China. It concluded that Xinjiang’s rural minorities needed to be broken away from traditional lifestyles and systematically “disciplined”, “trained” and “instilled with modern values.”

“The local saturated religious atmosphere and the long-time living habits of ethnic minorities are incompatible with the requirements of modern industrial production,” the paper said. It outlined a need to “slowly correct misunderstandings about going out to choose jobs.”

Before Uighurs were transferred for jobs, the paper continued, they needed to be trained and assessed on their living habits and adoption of corporate culture.

“Those who fail will not be exported,” it said.

The paper also described government incentives such as tax breaks and subsidies for Chinese companies to take Uighurs. A 2014 draft contract for Xinjiang laborers in Guangdong province obtained by the AP shows the government there offered companies 3000 RMB ($428.52) per worker, with an additional 1000 RMB ($142.84) for “training” each person for no less than 60 class hours. In exchange, companies had to offer “concentrated accommodation areas,” halal canteens and “ethnic unity education and training.”

But it was a tough sell at a time when Chinese officials were grappling with knifings, bombings and car attacks by Uighurs, fueled by explosive anger at the government’s harsh security measures and religious restrictions. Hundreds died in race-related violence in Xinjiang, both Uighur and Han Chinese.

A labor agent who only gave his surname, Zhang, said he tried brokering deals to send Xinjiang workers to factories in the eastern city of Hangzhou, but finding companies willing to take Uighurs was a challenge, especially in a slowing economy.

“Their work efficiency is not high,” he said.

The size of the program is considerable. A November 2017 state media report said Hotan prefecture alone planned to send 20,000 people over two years to work in inner China.

There, the report said, they would “realize the dreams of their lives.”

___

ANSWERING THE GOVERNMENT’S CALL

The Uighurs at OFLIM were sent there as part of the government’s labor program, in an arrangement the company’s website calls a “school-enterprise cooperative.” OFILM describes the workers as migrants organized by the government or vocational school students on “internships”.

OFILM confirmed it received AP requests for comment but did not reply.

The AP was unable to get inside the facility, and on one visit to Nanchang, plainclothes police tailed AP journalists by car and on foot. But posts on the company website extoll OFILM’s efforts to accommodate their Uighur workers with Mandarin and politics classes six days a week, along with halal food.

OFILM first hired Uighurs in 2017, recruiting over 3,000 young men and women in Xinjiang. They bring the Uighurs on one- or two-year contracts to Nanchang, a southeastern metropolis nearly two thousand miles from Xinjiang that local officials hope to turn into a tech hub.

OFILM is one of Nanchang’s biggest employers, with half a dozen factory complexes sprinkled across the city and close ties with the state. Investment funds backed by the Nanchang city government own large stakes in OFILM, corporate filings show. The Nanchang government told the AP that OFILM recruits minorities according to “voluntary selection by both parties” and provides equal pay along with personal and religious freedom.

OFILM’s website says the company “answered the government’s call” and went to Xinjiang to recruit minorities. The Uighurs need training, OFILM says, to pull them from poverty and help them “study and improve.”

Mandarin is heavily emphasized, the site says, as well as lessons in history and “ethnic unity” to “comprehensively improve their overall quality.” The site features pictures of Uighurs playing basketball on factory grounds, dancing in a canteen and vying in a Mandarin speech competition.

In August, when OFILM organized celebrations for Eid Qurban, a major Islamic festival, Uighur employees did not pray at a mosque. Instead, they dressed in orange uniforms and gathered in a basketball court for a show with Communist officials called “Love the Motherland – Thank the Party.” An OFILM post said a “Uighur beauty” dazzled with her “beautiful exotic style.”

State media reports portray the Nanchang factory workers as rural and backwards before the Communist Party trained them, a common perception of the Uighurs among the Han Chinese.

“The workers’ concept of time was hazy, they would sleep in till whenever they wanted,” a Party official is quoted as saying in one. Now, he said, their “concept of time has undergone a total reversal.”

In the reports and OFILM posts, the Uighurs are portrayed as grateful to the Communist Party for sending them to inner China.

Despite the wan expressions of three OFILM workers from Lop County, a December 2017 report said they gave an “enthusiastic” presentation about how they lived in clean new dormitories “much better than home” and were visited by Communist Party cadres.

“We were overjoyed that leaders from the Lop County government still come to see us on holidays,” one of the workers, Estullah Ali, was quoted as saying. “Many of us were moved to tears.”

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THEY TOOK MY CHILD TO INNER CHINA

Minorities fleeing China describe a far grimmer situation. H., a wealthy jade merchant from Lop County, where OFILM now gets Uighur workers, began noticing the labor transfer program in 2014. That’s when state propaganda blaring through television and loudspeakers urged young Uighurs to work in inner China. Officials hustled families to a labor transfer office where they were forced to sign contracts, under threat of land confiscations and prison sentences.

H., identified only by the initial of his last name out of fear of retribution, was worried. The government was not only reviving the labor program but also clamping down on religion. Acquaintances vanished: Devout Muslims and language teachers, men with beards, women with headscarves.

Toward the end of 2015, when H. greeted his 72-year-old neighbor on the street, the man burst into tears.

“They took my child to inner China to work,” he said.

Months later, H. and his family fled China.

Zharqynbek Otan, a Chinese-born ethnic Kazakh, said that after he was released from an internment camp in 2018, neighbors in his home village also told him their sons and daughters were forced to sign contracts for 6 months to five years to work at factories near Shanghai. If they ran from the factories, they were warned, they’d be taken straight back to internment camps.

Nurlan Kokteubai, an ethnic Kazakh, said during his time in an internment camp, a cadre told him they selected young, strong people to work in inner Chinese factories in need of labor.

“He told us that those young people would acquire vocational skills,” Kokteubai said.

Not all workers are subject to the restrictions at OFILM. One ethnic Kazakh said her brother made power banks in central China for $571.36 a month and didn’t take classes.

But another said two of his cousins were forced to go and work in cold, harsh conditions. They were promised $428.52 a month but paid only $42.85. Though they wanted to quit, four Uighurs who complained were detained in camps after returning to Xinjiang, scaring others.

Uighurs and Kazakhs in exile say it’s likely those working in inner China are still better off than those in camps or factories in Xinjiang, and that in the past, some had gone voluntarily to earn money. A former worker at Jiangxi Lianchuang Electronics, a lens maker in Nanchang, told The Associated Press the 300 or so Uighurs there were free to enter or leave their compound, although most live in dormitories inside factory grounds. He and a current worker said they were happy with their working conditions, their salary of about 5,000 RMB ($714.20) a month, and their teachers and Mandarin classes in the evenings.

But when presented a list of questions in Uighur about the labor transfers, the former Jiangxi Lianchuang worker started to look very nervous. He asked for the list, then set it on fire with a lighter and dropped it in an ashtray.

“If the Communist Party hears this, then” – he knocked his wrists together, mimicking a suspect being handcuffed. “It’s very bad.”

DOD Contractor at Pentagon Charged with Espionage

(WASHINGTON) — A linguist working for the U.S. military who kept a list of secret informants hidden under her mattress was charged with sharing the names with a romantic interest linked to the Lebanese militant group Hezbollah, the Justice Department said Wednesday.

Mariam Taha Thompson, 61, appeared in Washington’s federal court on Wednesday to face charges in an espionage case that investigators said put at risk the lives of American military members and confidential sources and represented a significant breach of classified information.

Traductora del Departamento de Defensa de EE. UU. es ...

The criminal case accuses Thompson, a contract translator, of giving to the unidentified Lebanese man the names of U.S. government sources and the information they provided. That effort, according to the government, accelerated during a six-week period from the end of December, when U.S. airstrikes targeted Iranian-backed forces in Iraq and exacerbated relations between the two countries, through the middle of last month.

Assistant Attorney General John Demers, the Justice Department’s top national security official, called the alleged conduct “a disgrace, especially for someone serving as a contractor with the United States military. This betrayal of country and colleagues will be punished.”

Thompson’s court appearance, on charges that could carry life in prison, was brief and ended with her being detained until a hearing next Wednesday. Her attorney did not return a phone message afterward.

Thompson was arrested last week at the military facility in Erbil, Iraq, where prosecutors say she worked as a contract linguist. The Defense Department said it was aware of the arrest and was cooperating with the investigation.

After the arrest, prosecutors say, Thompson acknowledged that she passed secret information to a man she was romantically interested in, but said she did not know that he had any affiliation with Hezbollah. She instead said she thought he might have been tied to the Amal political party in Lebanon, though she later said she considered the groups to be the same.

“No, I don’t know about Hizbollah. I hate Hizbollah,” Thompson told an agent, according to an affidavit unsealed Wednesday. She described members of the group, which the U.S. has designated as a foreign terrorist organization, as “terrorists” and “like the octopus. They can reach anybody.”

Thompson also told the agent that she passed along classified information by memorizing it, writing it down and transmitting it via the video feature of a secure messaging application on her cellphone. One screenshot of a video chat the FBI says it obtained showed Thompson displaying to the Lebanese man an Arabic note describing the technique an informant had used to collect information, according to the affidavit.

 

 

 

 

 

 

 

 

 

The 12 page affidavit is found here.