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Paul Merrell

Martin Shkreli Arrested on Securities Fraud Charges - 0 views

  • Martin Shkreli, a boastful pharmaceutical executive who came under withering criticism for price gouging vital drugs, denied securities fraud charges on Thursday following an early morning arrest, and was freed on a $5 million bond. While the 32-year-old has earned a rare level of infamy for his brazenness in business and his personal life, what he was charged with had nothing to do with skyrocketing drug prices. He is accused of repeatedly losing money for investors and lying to them about it, illegally taking assets from one of his companies to pay off debtors in another. “Shkreli essentially ran his company like a Ponzi scheme where he used each subsequent company to pay off defrauded investors from the prior company,” Brooklyn U.S. Attorney Robert Capers said at a press conference.
  • Evan Greebel, a New York lawyer, who is alleged in the federal indictment to have helped Shkreli in his schemes, was also arrested and charged. Like Shkreli, he pleaded not guilty, and he was freed on a $1 million bond. Both men and their lawyers declined to comment after their court appearance.
  • Read the full text of the indictment here In the federal indictment and a complaint by the Securities and Exchange Commission, authorities say Shkreli began losing money and lying to investors from the time he began managing money. In his mid-20s, he got nine investors to place $3 million with him and at one point he had only $331. Securities fraud is hardly unheard of on Wall Streeet and the amounts involved here are nowhere near on the scale of Bernie Madoff. But Shkreli’s case has drawn such attention because of his defiant price-gouging and his own up-by-the-bootstraps history. The son of immigrants from Albania and Croatia who did janitorial work and raised him and his brothers in working-class Brooklyn, Shkreli seemed at first to embody the American dream and then to mock it. After dropping out of an elite Manhattan high school, he worked as an intern for Jim Cramer’s hedge fund as a 17-year-old and quickly impressed with his ability to call stocks. He created hedge funds, taught himself biology and, after earning a BA at Baruch College in New York City, began hedge funds investing in biotech.
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  • He became famous within a certain world but entered public consciousness after he raised the price more than 55-fold for Daraprim in September from $13.50 per pill to $750. It is the preferred treatment for a parasitic condition known as toxoplasmosis, which can be deadly for unborn babies and patients with compromised immune systems including those with HIV or cancer. His company, Turing Pharmaceuticals AG, bought the drug, moved it to a closed distribution system and instantly drove the price into the stratosphere. He drew shocked rebukes from Congress, doctors and presidential candidates, and brought public attention to the rising prices of older drugs. Donald Trump called Shkreli a “spoiled brat,” and the BBC dubbed him the “most hated man in America.” Bernie Sanders, the Democratic presidential candidate, rejected a $2,700 campaign donation from him, directing it to an HIV clinic. A spokesman said the campaign would not keep money “from this poster boy for drug company greed.” All the criticism seemed at first to have some impact and Shkreli said he would lower the price. Then he reneged. When Hillary Clinton tried one more time last month to get him to cut the cost, he dismissed her with the tweet “lol.” At a Forbes summit in New York this month, wearing a hooded sweatshirt, he said if he could have done it over, “I probably would have raised the price higher,” adding, “My investors expect me to maximize profits.”
  • Shkreli did further damage to his public image with other acts and boasts. He spent millions on the only copy of a Wu-Tang Clan album that music fans are desperate to hear and then told Bloomberg Businessweek that he had no immediate plans to listen to it. He takes often to Twitter and message boards, bragging about his business strategies, musical tastes and politics; he live-streams from his office for long stretches. The SEC complaint and federal indictment lay out a series of schemes and cover-ups carried out by Shkreli. Capers said authorities began investigating him as early as 2014.
  • Barely 23, he was managing hedge fund Elea Capital in New York and lost it all in 2007. Around then, a trade with Lehman Brothers ended with a $2.3 million judgment against him, prosecutors said. In 2010, he lost his clients’ $3 million investment in his new fund, MSMB Capital. In 2011, he bet that shares of Orexigen Therapeutics Inc. would fall and wound up owing $7 million to his broker, Merrill Lynch, authorities said. He couldn’t pay, and he, an unnamed accomplice and MSMB Capital eventually extinguished the debt with a $1.35 million settlement, they said. Part of that money came from his next firm, authorities said. After the collapse of MSMB Capital, Shkreli launched MSMB Healthcare with about $5 million from 13 investors. He paid himself “far in excess” of the agreed-upon 1 percent management fee and 20 percent profit incentive, according to the SEC.
  • Shkreli then used cash from MSMB Healthcare to invest in Retrophin, the pharmaceutical company he founded in 2011, even though it “had no products or assets,” prosecutors said. Later, he used the assets of Retrophin to repay angry investors in his hedge funds, prosecutors said. Shkreli is confident that he will be cleared of the charges, according to a statement on his behalf. Shkreli is particularly disappointed that his litigation with Retrophin has become a government enforcement matter, according to the statement. He also denied the charges regarding the MSMB entities, which he said involve complex accounting matters that prosecutors and the SEC fail to understand, according to the statement. “It is no coincidence that these charges, the result of investigations which have been languishing for considerable time, have been filed at the same time of Shkreli’s high-profile, controversial and yet unrelated activities,” according to the statement. “The government suggested that Mr. Shkreli was involved in a Ponzi scheme. Ponzi victims do not make money, yet Mr. Shkreli’s investors enjoyed strong results.”
  • As Shkreli’s losses mounted, so did his lies. He fabricated portfolio statements and, with his lawyer’s help, deceived the SEC and outside accountants. He backdated records, manufactured a phony loan agreement between Retrophin and a hedge fund, and created sham consulting agreements with Retrophin as a way to route the company’s cash to his earlier investors. Greebel, the arrested lawyer, made sure Retrophin’s outside accountants were unaware of Shkreli’s financial maneuvers and helped him concoct the consulting agreements used to repay the hedge fund investors, the U.S. said. The cases mirror a lawsuit brought by Retrophin. Shkreli blithely dismissed his old company’s claims, saying, “The $65 million Retrophin wants from me would not dent me. I feel great. I’m licking my chops over the suits I’m going to file against them.” Earlier, he had denied wrongdoing in a post on InvestorsHub after Retrophin disclosed it had received a subpoena from federal prosecutors and the preliminary findings from its own investigation of Shkreli. He called the company’s allegations “completely false, untrue at best and defamatory at worst.”
  • “Every transaction I’ve ever made at Retrophin was done with outside counsel’s blessing,” he said on the investment blog in February, without identifying the lawyers. When Shkreli was working for Cramer’s firm, he was still a teenager. After recommending successful trades, Shkreli eventually set up his own hedge fund, quickly developing a reputation for trashing biotechnology stocks in online chatrooms and shorting them, to enormous profit. Widely admired for his intellect and sharp eye, he set up Retrophin to develop drugs and acquire older pharmaceuticals that could be sold for higher profits. Turing, which is less than a year old and has raised $90 million in financing, has followed a similar strategy with the purchase of drugs, including Daraprim. Shkreli recently bought a majority stake in KaloBios Pharmaceuticals Inc. after Turing received a warning from the New York attorney general that the distribution network for Daraprim may violate antitrust laws. State officials made their concerns known to Turing and Shkreli in an Oct. 12 letter obtained by Bloomberg.
  • KaloBios recently acquired the license for benznidazole, a standard treatment for Chagas, a deadly parasitic infection most common in South and Central America. The firm announced plans to increase the cost from a couple hundred dollars for two months to a pricing structure like that for hepatitis-C drugs, which can run to nearly $100,000 for 12 weeks.
  • With the federal charges and regulatory actions, Shkreli could be banned from running a public company, which could put the future of KaloBios into question. Trading in KaloBios shares was halted after the stock fell 53 percent. It’s less clear what the impact could be on Turing, which is closely held.
  • Federal authorities will have to ask a judge to impose an asset freeze if they want to guarantee Shkreli doesn’t dispose of ill-gotten gains. The charges suggest that a small group of health-care firms—ones that acquire the rights to drugs and significantly increase their prices—is drawing the scrutiny of regulators and prosecutors, with a possible chilling effect on aggressive drug-pricing strategies. Legislators are already paying attention. A hearing of the Senate Special Committee on Aging on Dec. 9 scrutinized such tactics. Before Shkreli started Turing, Retrophin raised the price of Thiola, used to treat a rare condition causing debilitating recurrences of kidney stones, from $1.50 a pill to $30. “Some of these companies seem to act more like hedge funds than traditional pharmaceutical companies,” said Senator Susan Collins, a Maine Republican who ran the recent hearing. George Scangos, CEO of biotechnology giant Biogen Inc., went further, saying in an interview, “Turing is to a research-based company like a loan shark is to a legitimate bank.”
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    Couldn't happen to a nicer guy.
Paul Merrell

Exclusive: As Saudis bombed Yemen, U.S. worried about legal blowback | Reuters - 0 views

  • The Obama administration went ahead with a $1.3 billion arms sale to Saudi Arabia last year despite warnings from some officials that the United States could be implicated in war crimes for supporting a Saudi-led air campaign in Yemen that has killed thousands of civilians, according to government documents and the accounts of current and former officials.State Department officials also were privately skeptical of the Saudi military's ability to target Houthi militants without killing civilians and destroying "critical infrastructure" needed for Yemen to recover, according to the emails and other records obtained by Reuters and interviews with nearly a dozen officials with knowledge of those discussions.U.S. government lawyers ultimately did not reach a conclusion on whether U.S. support for the campaign would make the United States a "co-belligerent" in the war under international law, four current and former officials said. That finding would have obligated Washington to investigate allegations of war crimes in Yemen and would have raised a legal risk that U.S. military personnel could be subject to prosecution, at least in theory.
  • For instance, one of the emails made a specific reference to a 2013 ruling from the war crimes trial of former Liberian president Charles Taylor that significantly widened the international legal definition of aiding and abetting such crimes.The ruling found that "practical assistance, encouragement or moral support" is sufficient to determine liability for war crimes. Prosecutors do not have to prove a defendant participated in a specific crime, the U.N.-backed court found.Ironically, the U.S. government already had submitted the Taylor ruling to a military commission at Guantanamo Bay, Cuba, to bolster its case that Khalid Sheikh Mohammed and other al Qaeda detainees were complicit in the Sept 11, 2001 attacks.The previously undisclosed material sheds light on the closed-door debate that shaped U.S. President Barack Obama’s response to what officials described as an agonizing foreign policy dilemma: how to allay Saudi concerns over a nuclear deal with Iran - Riyadh's arch-rival - without exacerbating a conflict in Yemen that has killed thousands.The documents, obtained by Reuters under the Freedom of Information Act, date from mid-May 2015 to February 2016, a period during which State Department officials reviewed and approved the sale of precision munitions to Saudi Arabia to replenish bombs dropped in Yemen. The documents were heavily redacted to withhold classified information and some details of meetings and discussion.(A selection of the documents can be viewed here: tmsnrt.rs/2dL4h6L; tmsnrt.rs/2dLbl2S; tmsnrt.rs/2dLb7Ji; tmsnrt.rs/2dLbbIX)
  • In a statement issued to Reuters before Saturday's attack, National Security Council spokesman Ned Price said, "U.S. security cooperation with Saudi Arabia is not a blank check. ... We have repeatedly expressed our deep concern about airstrikes that allegedly killed and injured civilians and also the heavy humanitarian toll paid by the Yemeni people."The United States continues to urge the Kingdom to take additional steps to avoid "future civilian harm," he added.
Paul Merrell

Trump retaliates against Abbas - Middle East Monitor - 0 views

  • Debkafile, an Israeli website close to the military intelligence, has reported that the Trump administration has decided to take a series of punitive measures against the Palestinian Authority (PA) after its successful campaign on Jerusalem in the UN General Assembly. In a report issued on 23 December, the Israeli website cited its sources in Washington as stating that President Trump had decided to sever contacts and relations with the PA and President Mahmoud Abbas. According to Debkafile, the Israeli-Palestinian peace plan under preparation in Washington will not be submitted to Ramallah but only to Israel and the relevant Arab governments. These steps were taken after the PA had been warned more than once, and told to drop its campaign against the Trump pronouncement on Jerusalem because of its negative impact on the region, according to the Israeli website. It added that the White House move was communicated to the PA through a third Arab party. The Israeli website further reported that the US will not publicly announce its freeze of aid to the PA. However, the administration will stop support and delay the resumption of economic projects backed by US institutions and re-examine them. President Trump also decided not to invite Palestinian officials to the White House, State Department and US Treasury, and not to receive Palestinians at the US National Security Council where they used to participate in meetings aimed at shaping US strategy in the Middle East. According to the Israeli website: “The US will halt its contributions to the UN Relief and Works Agency for Palestine (UNRWA), an estimated one billion dollars per annum” and will order Saudi Arabia, the UAE and Qatar to reduce the amount of aid provided to the Authority. While no official statements were made by the US administration or the PA, the Israeli website confirmed that US officials have informed Saeb Erekat, the PA’s chief negotiator, that there is nothing to discuss with him anymore.
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    More likely that this is actually in response to the PA's announcement that it will no longer participate in negotiations with Israel if the U.S. participates. Defunding the PA could actually advance Palestinian interests mightily since the PA has served the role as lapdog for Israel and the U.S., bringing Hamas into the role of Palestinian political leadership
Paul Merrell

Facebook, Apple, Microsoft, Skype & Yahoo Hit With Prism Data Protection Complaints In ... - 0 views

  • The European data protection activists behind the Europe v Facebook (evf) campaign group, that has long been a thorn in Facebook’s side in Europe, have filed new complaints under regional data protection law targeting Facebook, Apple, Microsoft, Skype and Yahoo for their alleged collaboration with the NSA’s Prism data collection program. The student activist organisation is targeting the European subsidiaries of these five U.S. companies, arguing that their corporate structure means they fall fully under European privacy laws despite being U.S. headquartered companies. And yet, being as they are U.S. companies, they are required to comply with U.S. surveillance laws — putting them in the “tricky” situation of having to comply with potentially conflicting legal requirements. It’s that legal conflict evf is now probing.
  • Evf takes the view that the law needs clarifying — and it using these new data protection complaints as the vehicle to obtain clarification from the various regional data protection agencies. Facebook and Apple; Microsoft and Skype; and Yahoo have subsidiaries in Ireland, Luxembourg and Germany respectively. ”We want a clear statement by the authorities if a European company may simply give foreign intelligence agencies access to its customer data. If this turns out to be legal, then we might have to change the laws,” noted evf speaker, Max Schrems, in a statement. The key question, as evf sees it, is whether “mass transfer” of personal data from to a foreign intelligence agency is legal under European law.  ”Many journalists have asked us in recent weeks if PRISM is legal from a EU perspective. We have looked at that a little closer. The result was – after consulting with legal experts – that it is very likely illegal under EU data protection laws, because of the corporate structure of the companies,” added Schrems. Google and YouTube have not been included in this first round of evf complaints being as they have a different corporate structure that does not include European subsidiaries. However it notes they do have datacenters in European countries, which will give evf a route to filing Prism-related data protection complaints against both at a later date.
  • Writing in a press notice announcing its new action, evf added: If a European subsidiary sends user data to the American parent company, this is considered an “export” of personal data. Under EU law, an export of data is only allowed if the European subsidiary can ensure an “adequate level or protection” in the foreign country. After the recent disclosures on the “PRISM” program such trust in an “adequate level of protection” by the involved companies can hardly be upheld. There can in no way be an adequate level of protection if they cooperate with the NSA on the other end of the line. Right now an export of data to the US must be seen as illegal if the involved companies cannot disprove the reports on the PRISM program. According to evf, the subsidiaries being targeted by these complaints have “the burden of proof” — to either “credibly assure” that the Prism program is a hoax, or “explain how mass access by a foreign intelligence agency interplays with EU data protection laws”. Evf cites a 2006 case precedent involving payment processor SWIFT which had forwarded transaction details to U.S. authorities. In that case it says a group of EU data protection authorities decided that such a mass data transfer is illegal under EU law, leading to SWIFT to move European data to a server in Switzerland. The case also led to an agreement between the U.S. and the EU on the use of payment data to combat crime.
Paul Merrell

Disengage or Die: Russia - Syria Give Aleppo "Rebels" a Last 10-Hour Ultimatum - nsnbc ... - 0 views

  • The Russian General Staff announced on Wednesday that a new humanitarian pause in combat activities will be implemented in Aleppo on Friday from 9am to 7pm local time. The pause will give non-combatants a new chance to leave the “rebel-held” pocket in eastern Aleppo and “rebels” to leave the pocket with their weapons and to move to other “rebel-held areas.
  • It hasn’t been part of the official announcement about the humanitarian pause and the offer that militants could evacuate. However, military logic dictates that this is a last “do or die” ultimatum before the use of decisive military force will be used against those militants who don’t leave the pocket in Aleppo. The offer about the 10-hour-long pause comes as insurgents are engaged in a massive assault against Syrian and Syrian-allied forces west of Aleppo in a desperate attempt to lift the siege. Chief of the General Staff of the Armed Forces of Russia Valery Gerasimov asserted that the decision was approved by Syrian authorities and was meant to “prevent senseless casualties” by allowing civilians and gunmen to leave the eastern neighborhoods of Aleppo. Gerasimov said: “All of the militants’ attempts to break through in the city of Aleppo have been unsuccessful. The terrorists suffered heavy losses of manpower, weaponry and military equipment. They have no chance to escape from the city” . He also called upon all terrorist groups’ leaders to get out from Aleppo city in light of Washington’s failure to separate the so-called “moderate opposition” from the terrorists. The latter statement underpins that Syria and Russia have to, and will count on a decisive military confrontation to clear the eastern part of the city from insurgents and to reestablish Syrian sovereignty as well as law and order in the entire city.
  • One of the corridors for the gunmen leads to the Turkish-Syrian border and another one to Idleb countryside, the General said, adding “During Friday’s pause, six additional corridors will be opened for civilians wishing to leave the city.”
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  • On October 20 – 22 a similar humanitarian pause was implemented. However, the evacuation of civilians was obstructed by Jabhat al-Nusrah (a.ka. Jabhat Ahrar al-Sham) and other insurgents. nsnbc consulted with a military expert from “a leading European military academy” who spoke on condition of anonymity. The expert stressed that the military as well as the humanitarian situation, in the absence of a political solution, dictates that eastern Aleppo be seized in a decisive battle unless insurgents use the “do or die” offer given to them. This need for a decisive military campaign, including the use of overwhelming air power, is in part dictated by the fact that Turkey hasn’t closed its border to insurgents, including Al-Qaeda affiliates, the entry of Turkish (NATO) troops into Syria, and the need to seize control over eastern Aleppo before winter sets in to avoid a humanitarian catastrophe, he said. Surgical air strikes against remaining insurgents inside eastern Aleppo could typically be preceded by the dissemination of information to non-combatants, encouraging them to leave certain areas while seeking refuge in others, he added. It is noteworthy that the offer to evacuate coincides with the arrival of Russian naval forces including the Russian aircraft carrier Admiral Kuznetsov in the Mediterranean.
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    It isn't just winter approaching. Russia and Syria undoubtedly want to finish taking Aleppo before the new U.S. president is sworn in.
Paul Merrell

Assange promises to leak more on Clinton, Dems - POLITICO - 0 views

  • WikiLeaks editor-in-chief Julian Assange on Wednesday night promised to leak “thousands” of document pages pertaining to Hillary Clinton, the Democratic National Committee and the presidential election. Speaking to Fox News’ Megyn Kelly, the mysterious Assange claimed an upcoming leak would have a “significant” impact on the coming general election. Story Continued Below “We have a lot of material, thousands of pages of material,” said the WikiLeaks leader, who remains in exile at Ecuador's embassy in London. “There's a variety of different types of documents and different types of institutions that are associated with the election campaign, some quite unexpected angles that are, you know, quite interesting, some even entertaining.”
  • While refusing to unveil a timetable for the leak, Assange addressed whether the documents in the group’s position could be damaging to the Democratic nominee. “I think it's significant,” he said. “You know, it depends on how it catches fire in the public and in the media.”
Paul Merrell

Washington and Riyadh 'Plan to Move Daesh from Mosul to Syria' - JAMAHIRIYA NEWS AGENCY - 0 views

  • Intelligence agencies of the United States and Saudi Arabia plan to allow more than 9,000 Daesh fighters leave the Iraqi city of Mosul and travel to eastern Syria where they will take part in a major offensive to recapture Deir ez-Zor and Palmyra among over things, an unnamed source in military and diplomatic circles in Moscow told RIA Novosti. “American and Saudi intelligence services have reached an agreement to provide all militants a safe passage to leave the city with their families before” Iraqi security forces and their allies launch the operation to free Mosul, he suggested. The matter was ostensibly settled during the preliminary phase of the offensive. When the Mosul campaign begins, “coalition warplanes will launch airstrikes solely against isolated and abandoned houses within the city,” the source noted, adding that these targets have been chosen in coordination with the militants. Daesh fighters, he said, will then move to Syria. “More than 9,000 Daesh fighters from Mosul will be redeployed to eastern Syria to carry out a large-scale offensive which will involve among other things taking control over Deir ez-Zor and Palmyra,” the source detailed. For Washington, this plan, the source suggested, will be an attempt to diminish Russia’s success in Syria. Moscow has been credited with helping the Syrian Arab Army turn the tide of war that has seen Damascus fighting against foreign-sponsored terrorist groups for more than five years. “Apart from political dividends, the other goal of this operation clearly involves discrediting the achievements of the Russian Aerospace Forces. Surely, this is also an attempt to undermine [Bashar] al-Assad,” the source said.
  • Senior officials at the General Intelligence Directorate, Saudi Arabia’s primary intelligence, served as mediators between the US and the militants, the source said, adding that they will also guarantee that Washington delivers on the deal. He explained that a similar idea was previously employed in Fallujah. Baghdad-led forces freed Fallujah in late June after a three-months-long siege. Political analyst Alexander Perendzhiev doubted that this plan will work. Daesh “has Iraqi roots; Mosul is their stronghold and they will clearly be unwilling to leave Iraq,” he told RIA Novosti. “Mosul will probably remain in the hands of terrorists. Some of them will travel to Syria and the rest will pretend that they surrender.”
Paul Merrell

Google, ACLU call to delay government hacking rule | TheHill - 0 views

  • A coalition of 26 organizations, including the American Civil Liberties Union (ACLU) and Google, signed a letter Monday asking lawmakers to delay a measure that would expand the government’s hacking authority. The letter asks Senate Majority Leader Mitch McConnellMitch McConnellTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Ky.) and Minority Leader Harry ReidHarry ReidNevada can’t trust Trump to protect public lands Sanders, Warren face tough decision on Trump Google, ACLU call to delay government hacking rule MORE (D-Nev.), plus House Speaker Paul RyanPaul RyanTrump voices confidence on infrastructure plan GOP leaders to Obama: Leave Iran policy to Trump GOP debates going big on tax reform MORE (R-Wis.), and House Minority Leader Nancy Pelosi (D-Calif.) to further review proposed changes to Rule 41 and delay its implementation until July 1, 2017. ADVERTISEMENTThe Department of Justice’s alterations to the rule would allow law enforcement to use a single warrant to hack multiple devices beyond the jurisdiction that the warrant was issued in. The FBI used such a tactic to apprehend users of the child pornography dark website, Playpen. It took control of the dark website for two weeks and after securing two warrants, installed malware on Playpen users computers to acquire their identities. But the signatories of the letter — which include advocacy groups, companies and trade associations — are raising questions about the effects of the change. 
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    ".. no Warrants shall issue, but upon probable cause, supported by Oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized." Fourth Amendment. The changes to Rule 41 ignore the particularity requirement by allowing the government to search computers that are not particularly identified in multiple locations not particularly identifed, in other words, a general warrant that is precisely the reason the particularity requirement was adopted to outlaw.
Paul Merrell

Dems discuss dropping Wasserman Schultz | TheHill - 0 views

  • Democrats on Capitol Hill are discussing whether Rep. Debbie Wasserman Schultz should step down as Democratic National Committee (DNC) chairwoman before the party’s national convention in July.Democrats backing likely presidential nominee Hillary ClintonHillary Rodham ClintonSanders: Clinton shouldn't pick VP from Wall Street McAfee on chances of Libertarian win: 'We're not that stupid' Libertarian candidate raps at party convention MORE worry Wasserman Schultz has become too divisive a figure to unify the party in 2016, which they say is crucial to defeating presumptive GOP nominee Donald TrumpDonald TrumpSanders: Primary isn't 'rigged,' just 'dumb' Trump University judge to unseal documents Dole: Gingrich should be Trump's running mate MORE in November.ADVERTISEMENTWasserman Schultz has had an increasingly acrimonious relationship with the party’s other presidential candidate, Bernie SandersBernie SandersSanders: Clinton shouldn't pick VP from Wall Street Sanders: Primary isn't 'rigged,' just 'dumb' Dick Van Dyke introduces Sanders at rally MORE, and his supporters, who argue she has tilted the scales in Clinton’s favor.“There have been a lot of meetings over the past 48 hours about what color plate do we deliver Debbie Wasserman Schultz’s head on,” said one pro-Clinton Democratic senator.
Paul Merrell

DOJ's Motion to Dismiss in Smith v. Obama, the case challenging the legality of the war... - 0 views

  • As I noted in an earlier post, Nathan Smith, a U.S. Army captain deployed to Kuwait as part of the campaign against ISIL, Operation Inherent Resolve, has sued the President, seeking a declaration that Congress has not authorized the hostilities in Iraq and Syria and that therefore the War Powers Resolution requires the President to remove U.S. forces from hostilities in those nations. On Tuesday, the Department of Justice filed a motion to dismiss the case. Its brief in support of the motion includes one argument that I think is correct (albeit not for all the reasons the government offers) — namely, that Smith lacks standing to sue. That ought to be sufficient to have the case dismissed. The brief also includes an argument on the merits (albeit not designated as such) that is very interesting and potentially important — an account of how Congress has allegedly authorized Inherent Resolve in three ways: (i) in the 2001 AUMF; (ii) in the 2002 AUMF; and (iii) in current appropriations statutes. The heart of the brief, however, is devoted to a third argument — that Judge Koller-Kotelly must dismiss the case on the basis of the political question doctrine — that is not only wrong, but that simply ignores the Supreme Court’s recent (and repeated) repudiation of that very argument.
  • On page 39 of its 45-page brief, the government finally gets around to the reason why the court should dismiss the complaint: Smith lacks standing. Importantly, Smith’s theory of standing is not that he — an Army captain deployed to perform intelligence services in Kuwait — is more likely to be injured or killed by virtue of the President’s decision to deploy troops into hostilities in Iraq and Syria. It is, instead, that the President’s alleged failure to comply with the War Powers Act results in Captain Smith’s own violation of his officer’s oath to “support and defend” the Constitution “against all enemies, foreign and domestic,” and to “bear true faith and allegiance” to the Constitution.
  • The government’s standing argument begins (p. 35) by suggesting that “[p]laintiff’s claim that he is being forced to betray his oath is insufficient to establish standing because the violation of an oath, by itself, is not an injury in fact.” The cases the government cites for that proposition, however, do not say that a forced oath violation would not be an injury in fact — and that’s not a question the judge needs to resolve. What the cases establish, instead, is the point the government finally argues at page 39 — namely, that a government officer does not violate his oath by complying with superiors’ orders, even if it turns out that the law prohibits the military operation in which those orders are issued. Indeed, Smith would not violate his oath of office even if his superiors’ orders themselves were unauthorized, or if the intelligence activities he is ordered to performed were unauthorized. But he does not allege even those things (as I discuss below, he does not, for instance, alleged that he is being ordered to do anything unlawful). Instead, he merely argues that because President Obama should have withdrawn troops from Syria and Iraq 60 days after their deployment, Smith himself is violating his oath to “bear true faith and allegiance to the Constitution.” This is a non sequitur: Even if Smith is right that the continuation of Operation Inherent Resolve is unlawful, that would not mean that he is acting in violation of his oath. (Much more on this in my earlier post.) And that simple fact is reason enough for Judge Koller-Kotelly to dismiss the case.
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  • One of Smith’s counsel, Professor Bruce Ackerman, argues that this reason for rejecting the oath-based theory of standing ignores the Supreme Court’s 1804 decision in Little v. Barreme. Little, however, is not on point. In that case, Navy Captain Little was sued by the owners of a Danish ship for damages caused when Little seized that neutral ship. The Court held that Little could be liable, notwithstanding the fact that he was following orders, because the capture violated a implicit statutory prohibition on the military’s seizure of ships sailing from France to the United States. In this case, however, Captain Smith has not argued — nor could he — that he has been ordered to do anything unlawful (in violation of a statute), let alone that he has been ordered to do something that would subject him to possible liability for damages. He is, instead, arguing that President Obama violated a statute. That is not enough to establish Smith’s standing to sue.
  • The government’s main argument, to which it devotes far too many pages, is that the judge must dismiss the case because it raises a “political question” that courts cannot answer. This is flatly wrong — and it ignores several controlling precedents, including the Supreme Court’s recent 8-1 rejection of virtually the same government argument in Zivotofsky v. Clinton.
  • The most interesting thing about the government’s brief — and by far the most important aspect of it, for public purposes apart from the lawsuit itself — is that, in the section ostensibly arguing that the case is nonjusticiable (see pp. 25-30, and also pp. 4-14), DOJ actually offers the Executive branch’s most detailed defense yet about why Operation Inherent Resolve is congressionally authorized. As some of us predicted, the government relies on three arguable authorizations, any one of which would be sufficient to defeat Smith’s WPR claim if the courts were to reach the merits. In this post I’m not going to assess the merits of the three arguments. For now, my purpose is only to describe them, and to raise one issue with respect to the third. i. First, the government argues that the 2001 AUMF authorizes the operation against ISIL.
  • Second, the government argues that the 2002 AUMF also authorizes Operation Inherent Resolve, just as it authorized operations in Iraq against AQI (which became ISIL) from 2003 to 2011, after the Hussain regime fell.
  • Finally, and most interestingly (in part because the government has not previously made this argument), DOJ argues that a recent “unbroken stream” of appropriations statutes not only confirm the authorities allegedly conferred by the 2001 and 2002 AUMFs, but also offer their own, independent congressional authorization.
  • Two things are fairly clear from this: The members of Congress approve of Operation Inherent Resolve — indeed, there’s virtually no opposition. And Congress has (most likely) appropriated funds to pay for it. The operative question, however, is whether Congress’s appropriations also serve as an authorization that would supersede the requirement of WPR section 5(b). The government brief alludes to one important argument that the plaintiff will undoubtedly raise: Section 8(a)(1) of the WPR provides that, for purposes of tolling the 60-day clock of section 5(b), “[a]uthority to introduce United States Armed Forces into hostilities or into situations wherein involvement in hostilities is clearly indicated by the circumstances shall not be inferred (1) from any provision of law . . . including any provision contained in any appropriations Act, unless such provision specifically authorizes the introduction of United States Armed Forces into hostilities or into such situations and states that it is intended to constitute specific statutory authorization within the meaning of this chapter.” Obviously, the 2016 Act does not satisfy that requirement. Is that fatal to the appropriations-as-authorization argument?
  • As the Office of Legal Counsel 50 U.S.C. 1542 and 1543). These provisions might be read simply to convey that the executive must continue to comply with the consultation and reporting requirements of WPR sections 3 and 4, even after the 2016 Act authorizes the introduction of troops into hostilities in Iraq and Syria. Or they might alternatively be construed to also specify that the Act is not providing the authority that section 5(b) of the WPR calls for.
  • Not surprisingly, DOJ argues for the former view (pp. 27-28 of the brief): “[I]n the few provisions in which Congress did reference the War Powers Resolution, to clarify that no funds made available for Operation Inherent Resolve are to be used ‘in contravention’ of the Resolution, Congress signaled its agreement that the President’s counter-ISIL military actions were authorized by simultaneously funding Operation Inherent Resolve. If Congress believed that the United States had been conducting airstrikes and other counter-ISIL military activities ‘in contravention of the War Powers Resolution,’ it would have made no sense for Congress to use the ‘in contravention’ proviso in the same laws that make funds available for the express purpose of continuing those military activities.” That’s not a bad argument, at least at first glance; but it’s not a slam-dunk, either, in part because appropriations provisions do not necessarily establish authorizations. It’ll be interesting to see how Captain Smith’s lawyers respond to this particular aspect of the merits argument. I doubt Judge Koller-Kotelly will reach it, however, because she is likely to dismiss the case for want of standing.
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    I've read the brief. I don't think the implied partial repeal of the War Powers Resolution argument should fly. The relevant provision establishes a rule of interpretation of later statutes and the appropriations bills neither reject the rule of interpretation nor specifically provide authorization for use of military force. They just authorize funding. On the standing issue, I think the DoJ position is correct; the oath of office applies only to senior officers who make the decision to initiate a war. But DoJ may have opened the door to a more compelling standing argument by arguing that the war does not constitute a war crime, a crime against peace, or a crime against humanity under international law. DoJ did not need to make that argument because Smith had not alleged in his complaint that he was being ordered to commit such crimes, but by doing so DoJ waives any argument that such issues are beyond the scope of Smith's standing and the evidence that the Iraq and Syrian wars are illegal under international law is, to say the least, strong.
Paul Merrell

Top spy: Despite intelligence 'war' with Russians, it's too soon to blame them for DNC ... - 0 views

  • Spy chief James Clapper said Thursday that U.S. intelligence services are facing a "version of war" with Russia — but it's too soon to blame the old Cold War rival for hacking the Democratic National Committee's emails. He said it's also too early to say whether the people who leaked those emails are trying to throw the presidential election to Donald Trump, as Hillary Clinton's campaign has charged. Story Continued Below "I don't think we're quite ready yet to make a call on attribution," Clapper said at the Aspen Security Forum in Colorado. "There are just a few usual suspects out there." Additionally, he said, "We don't know enough to ascribe motivation regardless of who it might have been." The reasons for the administration's reluctance to assign blame are a combination of two factors, Clapper said: uncertainty about whether the Russians are the culprits, and the lack of a decision yet on whether the U.S. should "name and shame" them if indeed they committed the cyberattack. No one should be "hyperventilating" about the hack, though, he said. "I'm shocked somebody did some hacking," he said, sarcastically taking the voice of someone who was surprised. "That's never happened before."
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    In other words, Clapper is saying that Team Hillary is trying to change the subject from the content of the DNC emails to bl;aming the Russians for the hack, without sufficient evidence to do so. Of course Hillary wants the subject changed. But will she get a way with it?
Paul Merrell

A whirlwind day in D.C. showcases Trump's unorthodox views and shifting tone - The Wash... - 0 views

  • Donald Trump endorsed an unabashedly noninterventionist approach to world affairs Monday during a day-long tour of Washington, casting doubt on the need for the North Atlantic Treaty Organization and expressing skepticism about a muscular U.S. military presence in Asia. The foreign policy positions — outlined in a meeting with the editorial board of The Washington Post — came on a day when Trump set aside the guerrilla tactics and showman bravado that have powered his campaign to appear as a would-be presidential nominee, explaining his policies, accepting counsel and building bridges to Republican elites.
  • During the hour-long discussion, during which he revealed five of his foreign policy advisers, Trump advocated a light footprint in the world. In spite of unrest in the Middle East and elsewhere, he said, the United States must look inward and steer its resources toward rebuilding the nation’s crumbling infrastructure.
  • “At what point do you say, ‘Hey, we have to take care of ourselves?’ ” Trump said in the editorial board meeting. “I know the outer world exists, and I’ll be very cognizant of that. But at the same time, our country is disintegrating, large sections of it, especially the inner cities.” Trump said U.S. involvement in NATO may need to be significantly diminished in the coming years, breaking with nearly seven decades of consensus in Washington. “We certainly can’t afford to do this anymore,” he said, adding later, “NATO is costing us a fortune, and yes, we’re protecting Europe with NATO, but we’re spending a lot of money.”
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  • Trump praised George P. Shultz, who served as President Ronald Reagan’s secretary of state, as a model diplomat and, on the subject of Russia’s aggression in Ukraine, said America’s allies are “not doing anything.” “Ukraine is a country that affects us far less than it affects other countries in NATO, and yet we’re doing all of the lifting,” Trump said. “They’re not doing anything. And I say: ‘Why is it that Germany’s not dealing with NATO on Ukraine? . . . Why are we always the one that’s leading, potentially, the third world war with Russia?’ ” While the Obama administration has faced pressure from congressional critics who have advocated for a more active U.S. role in supporting Ukraine, the U.S. military has limited its assistance to nonlethal equipment such as vehicles and night-vision gear. European nations have taken the lead in crafting a fragile cease-fire designed to decrease hostility between Ukrainian forces and Russian-backed separatists.
  • Trump sounded a similar note in discussing the U.S. presence in the Pacific. He questioned the value of massive military investments in Asia and wondered aloud whether the United States still is capable of being an effective peacekeeping force there. “South Korea is very rich, great industrial country, and yet we’re not reimbursed fairly for what we do,” Trump said. “We’re constantly sending our ships, sending our planes, doing our war games — we’re reimbursed a fraction of what this is all costing.” Such talk is likely to trigger anxiety in South Korea, where a U.S. force of 28,000 has provided a strong deterrent to North Korean threats for decades. Asked whether the United States benefits from its involvement in Asia, Trump replied, “Personally, I don’t think so.” He added: “I think we were a very powerful, very wealthy country. And we’re a poor country now. We’re a debtor nation.”
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    "I think we were a very powerful, very wealthy country. And we're a poor country now. We're a debtor nation."
Paul Merrell

NSA spied on Germany's Schroeder over Iraq War opposition - report - RT News - 0 views

  • The US eavesdropped on former German Chancellor Gerhard Schroeder over his staunch criticism of the 2003 US-led invasion of Iraq, says a new report by German journalists. Schroeder was added to the NSA espionage targets list as number 388 by 2002, Munich daily Sueddeutsche Zeitung and NDR revealed in their reports on Tuesday. Media quoted unnamed US government officials and "NSA insiders” who saw Snowden documents. Schroeder told Sueddeutsche Zeitung that he was not surprised by the report. The paper added that NSA spying involved not only the detection of connection data, but also written and spoken communications.
  • In 2002, Schroeder and his Social Democratic party parted with America's views, stating at the beginning of its election campaign that Germany would not provide troops or money for an invasion of Iraq. The party made a promise that it would stay out of the war, even if it was approved by the UN.
Paul Merrell

LAPD scopes out Israeli drones, 'Big Data' solutions | Nation | Jewish Journal - 0 views

  • For the first nine days of February, eight of the Los Angeles Police Department’s top brass were 7,500 miles away from home, being shuttled around Israel in a minibus.
  • LAPD Deputy Chief Jose Perez, a good-natured 30-year veteran of the department who oversees its central bureau, tweeted updates at nearly every stop. On Feb. 2, he shared a group photo of the Los Angeles delegation visiting the corporate headquarters of Nice Systems, an Israeli security and cyber intelligence company that can intercept and instantly analyze video, audio and text-based communications. (A seemingly tongue-in-cheek inspirational poster on the wall behind them reads: “Every voice deserves to be heard.”)
  • The group visited private security firms and drone manufacturers, as well as the terror-prone Ashdod Port, a museum in Sderot full of old rockets shot from nearby Gaza (the same one United States President Barack Obama visited on his 2008 campaign trip to Israel), and a “safe city” underground control center in the large suburb of Rishon LeZion, which receives live streams from more than 1,000 cameras with license plate recognition installed throughout the city.
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  • Frank was joined by seven of his fellow command staff at the Big Data Intelligence Conference hosted by i-HLS in the beach town of Herzliya, Israel, on Feb. 6. “On behalf of my chief of police, Chief Charlie Beck, and the 13,000-plus sworn and non-sworn members of the Los Angeles Police Department, a very heartfelt thanks to all of you for having me here,” Frank said in an opening statement for the conference, which brought together some of Israel’s — and the world’s — top cyber security and intelligence experts.
  • Frank said he was especially impressed by what he saw while visiting Israeli companies Nice Systems (as tweeted by Perez) and Verint, one of the companies whose services the National Security Administration (NSA) reportedly used in the infamous United States wiretapping scandal. Both companies already count the LAPD as a client. But, Frank said, “we’re looking at some of their additional solutions … They have a lot of new technologies that we are very much interested in.” Nice System’s  president of security, Yaron Tchwella, spoke at the conference about the company’s ability to help government agencies capture and store the billions of calls, emails, messages and social media posts that their populations generate each day, then analyze it in real time to detect potential threats.
  • Perez said he hoped the LAPD, too, would eventually be able to “use technology to incorporate all the systems that we have. That’s the wave of the future. We’re definitely looking at the ability to get that information out to the officers on the beat with a handheld. Something happens, and you’re looking at the handheld — almost like ‘The Bourne Supremacy’ — here’s a picture of the guy you’re looking for.”
  • Also in Khan’s crosshairs is Special Order 1, an LAPD policy that allows officers to document any otherwise lawful activity that they, or other members of the community, deem suspicious. (Including, for example, the photographing of certain government sites.) And new LAPD intel collection methods or surveillance drones, said Khan, would only be “adding more to their toolbox of being highly militarized in counterinsurgency forces” against protesters and movements such as Occupy. “Yet it is wrapped in this whole language of community policing.” Two separate L.A. Weekly investigations in 2012 found that the LAPD uses expensive StingRay devices, which can locate cellphones (and their users) by acting like cellphone towers, and license-plate recognition cameras that track millions of drivers. Although both devices technically require a warrant to be used in a police investigation, there is little way to know whether police are always complying with the rules.
  • Surveillance drones manufactured by Israel Aerospace Industries (IAI) and Sky Sapience were also hot items on the LAPD tour. Both Frank and Perez lit up when talking about the HoverMast, a new tethered drone from Sky Sapience that was just released to the IDF late last year. “There are several things on the wish list, but we did like Sky Sapience — that was incredible,” Perez said. “For me personally, just for my command, which is five stations, and all the special events that I have, crowd control and being able to see everything would be some technology that is needed immediately.” However, Frank added, the HoverMast “has its challenges: from a political standpoint, convincing our political leaders, and from a community standpoint, convincing the community that it’s not Big Brother watching over you.”
  • A spokeswoman for Sky Sapience said the HoverMast can intercept wireless communications, and its cameras are capable of facial recognition. A spokeswoman for IAI said that while showing LAPD officers their drones, the company “wanted to emphasize the fact that drones can be very helpful in giving intelligence in urban scenarios… you need it now, you need it quick, you need to see what’s inside a window, and what’s behind this building.”
  • Many of the companies attracting LAPD interest have one thing in common: They were formed by veterans of the IDF’s elite, top-secret 8200 Unit, better known as Israel’s version of the NSA.
  • Perez emphasized that as a local police agency, the LAPD has much tighter legal constraints than federal agencies to adhere to when adopting army-born surveillance and “big data” technologies.
Paul Merrell

BBC News - Australia sites hacked amid spying row with Indonesia - 0 views

  • A member of Anonymous Indonesia said the group carried out the cyber attacks Continue reading the main story Spy leaks How intelligence is gathered History of spying NSA secrets failure 'Five eyes' club Hackers have attacked the websites of the Australian police and Reserve Bank amid an ongoing row over reports Canberra spied on Jakarta officials. The row has heightened diplomatic tensions between the allies and sparked protests in Indonesia. Indonesia has suspended military co-operation with Australia and recalled its ambassador over the allegations. A top Australian adviser has also come under fire for several tweets critical of Indonesia's handling of the row. Reports of the spying allegations came out in Australian media from documents leaked by whistleblower Edward Snowden.
  • The leaked documents showed that Australian spy agencies named Indonesian President Susilo Bambang Yudhoyono, the first lady, the vice-president and other senior ministers as targets for telephone monitoring, Australian media said. The alleged spying took place in 2009, under the previous Australian government. "It is not possible that we can continue our co-operation when we are still uncertain that there is no spying towards us," Mr Yudhoyono said on Wednesday. He added he would also write to Australian Prime Minister Tony Abbott to seek an official explanation over spying allegations. Mr Abbot has said he regretted the embarrassment the media reports have caused. However, he also said that he does not believe Australia "should be expected to apologise for reasonable intelligence-gathering operations"
  • The Australian Federal Police (AFP) and Australia's Reserve Bank confirmed that their sites were victims of a cyber attack on Wednesday night.
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  • The Reserve Bank also said its website was "the subject of a denial of service attack". "The bank has protections for its website, so the bank website remains secure," a spokesman added. Australian media identified a Twitter user who described herself as a member of Anonymous Indonesia and appeared to claim responsibility for the attack. The user wrote: "I am ready for this war!" and said she would conduct further attacks unless there was an apology from the Australian government for the alleged spying. Twitter outburst
  • Meanwhile, Mark Textor, a campaign strategist who advised Australian Prime Minister Tony Abbott's Liberal Party came under fire for a series of provocative tweets that criticised Indonesia's handling of the spying row. Mr Textor wrote in a Twitter post: "Apology demanded from Australia by a bloke who looks like a 1970's Pilipino [sic] porn star and has ethics to match". The tweet has since been deleted. Australian media widely reported that he was referring to Indonesian Foreign Minister Marty Natalegawa, who has called for an apology from Australia over the spying claims.
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    Edward Snowden's leak continues to roil international relations.
Paul Merrell

White House defends 'Cuban Twitter' to stir unrest - Yahoo News - 0 views

  • The Obama administration defended its creation of a Twitter-like Cuban communications network to undermine the communist government, declaring the secret program was "invested and debated" by Congress and wasn't a covert operation that required White House approval.
  • But two senior Democrats on congressional intelligence and judiciary committees said Thursday they had known nothing about the effort, which one of them described as "dumb, dumb, dumb." A showdown with that senator's panel is expected next week, and the Republican chairman of a House oversight subcommittee said that it, too, would look into the program.An Associated Press investigation found that the network was built with secret shell companies and financed through a foreign bank. The project, which lasted more than two years and drew tens of thousands of subscribers, sought to evade Cuba's stranglehold on the Internet with a primitive social media platform.First, the network was to build a Cuban audience, mostly young people. Then, the plan was to push them toward dissent.
  • Yet its users were neither aware it was created by a U.S. agency with ties to the State Department, nor that American contractors were gathering personal data about them, in the hope that the information might be used someday for political purposes.It is unclear whether the scheme was legal under U.S. law, which requires written authorization of covert action by the president as well as congressional notification. White House spokesman Jay Carney said he was not aware of individuals in the White House who had known about the program.
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  • USAID's top official, Rajiv Shah, is scheduled to testify on Tuesday before the Senate Appropriations State Department and Foreign Operations Subcommittee, on the agency's budget. The subcommittee's chairman, Patrick Leahy, a Democrat, is the senator who called the project "dumb, dumb, dumb" during an appearance Thursday on MSNBC.The administration said early Thursday that it had disclosed the initiative to Congress — Carney said the program had been "debated in Congress" — but hours later the narrative had shifted to say that the administration had offered to discuss funding for it with the congressional committees that approve federal programs and budgets."We also offered to brief our appropriators and our authorizers," said State Department spokeswoman Marie Harf. She added that she was hearing on Capitol Hill that many people support these kinds of democracy promotion programs. And some lawmakers did speak up on that subject. But by late Thursday no members of Congress had acknowledged being aware of the Cuban Twitter program earlier than this week.
  • Harf described the program as "discreet" but said it was in no way classified or covert. Harf also said the project, dubbed ZunZuneo, did not rise to a level that required the secretary of state to be notified. Neither former Secretary of State Hillary Rodham Clinton nor John Kerry, the current occupant of the office, was aware of ZunZuneo, she said.In his prior position as chairman of the Senate Foreign Relations Committee, Kerry had asked congressional investigators to examine whether or not U.S. democracy promotion programs in Cuba were operated according to U.S. laws, among other issues. The resulting report, released by the Government Accountability Office in January 2013, does not examine whether or not the programs were covert. It does not say that any U.S. laws were broken.The GAO report does not specifically refer to ZunZuneo, but does note that USAID programs included "support for the development of independent social networking platforms."
  • "I know they said we were notified," Leahy told AP. "We were notified in the most oblique way, that nobody could understand it. I'm going to ask two basic questions: Why weren't we specifically told about this if you're asking us for money? And secondly, whose bright idea was this anyway?"The Republican chairman of a House oversight subcommittee said his panel will be looking into the project, too."That is not what USAID should be doing," said Rep. Jason Chaffetz, the Republican chairman of the House Oversight and Government Reform National Security Subcommittee. "USAID is flying the American flag and should be recognized around the globe as an honest broker of doing good. If they start participating in covert, subversive activities, the credibility of the United States is diminished."
  • At minimum, details uncovered by the AP appear to muddy the USAID's longstanding claims that it does not conduct covert actions, and the details could undermine the agency's mission to deliver aid to the world's poor and vulnerable — an effort that requires the trust and cooperation of foreign governments.Leahy and Rep. C.A. Dutch Ruppersberger, the top Democrat on the House Intelligence Committee, said they were unaware of ZunZuneo.
  • USAID and its contractors went to extensive lengths to conceal Washington's ties to the project, according to interviews and documents obtained by the AP. They set up front companies in Spain and the Cayman Islands to hide the money trail, and recruited CEOs without telling them they would be working on a U.S. taxpayer-funded project."There will be absolutely no mention of United States government involvement," according to a 2010 memo from Mobile Accord Inc., one of the project's creators. "This is absolutely crucial for the long-term success of the service and to ensure the success of the Mission."ZunZuneo was publicly launched shortly after the 2009 arrest in Cuba of American contractor Alan Gross. He was imprisoned after traveling repeatedly to the country on a separate, clandestine USAID mission to expand Internet access using sensitive technology that only governments use.The AP obtained more than 1,000 pages of documents about the ZunZuneo project's development. It independently verified the project's scope and details in the documents through publicly available databases, government sources and interviews with those involved.
  • The social media project began after Washington-based Creative Associates International obtained a half-million Cuban cellphone numbers. It was unclear to the AP how the numbers were obtained, although documents indicate they were done so illicitly from a key source inside the country's state-run provider. Project organizers used those numbers to start a subscriber base.ZunZuneo's organizers wanted the social network to grow slowly to avoid detection by the Cuban government. Eventually, documents and interviews reveal, they hoped the network would reach critical mass so that dissidents could organize "smart mobs" — mass gatherings called at a moment's notice — that could trigger political demonstrations, or "renegotiate the balance of power between the state and society."At a 2011 speech at George Washington University, Clinton said the U.S. helps people in "oppressive Internet environments get around filters." Noting Tunisia's role in the Arab Spring, she said people used technology to help "fuel a movement that led to revolutionary change."Suzanne Hall, then a State Department official working on Clinton's social media efforts, helped spearhead an attempt to get Twitter founder Jack Dorsey to take over the ZunZuneo project, documents indicate. Dorsey declined to comment.
  • The estimated $1.6 million spent on ZunZuneo was publicly earmarked for an unspecified project in Pakistan, public government data show, but those documents don't reveal where the funds were actually spent.ZunZuneo's organizers worked hard to create a network that looked like a legitimate business, including the creation of a companion website — and marketing campaign — so users could subscribe and send their own text messages to groups of their choice."Mock ad banners will give it the appearance of a commercial enterprise," one written proposal obtained by the AP said. Behind the scenes, ZunZuneo's computers were also storing and analyzing subscribers' messages and other demographic information, including gender, age, "receptiveness" and "political tendencies." USAID believed the demographics on dissent could help it target its other Cuba programs and "maximize our possibilities to extend our reach."
  • Executives set up a corporation in Spain and an operating company in the Cayman Islands — a well-known British offshore tax haven — to pay the company's bills so the "money trail will not trace back to America," a strategy memo said. Disclosure of that connection would have been a catastrophic blow, they concluded, because it would undermine the service's credibility with subscribers and get it shut down by the Cuban government.Similarly, subscribers' messages were funneled through two other countries — and never through American-based computer servers.Denver-based Mobile Accord considered at least a dozen candidates to head the European front company. One candidate, Francoise de Valera, told the AP she was told nothing about Cuba or U.S. involvement.
  • James Eberhard, Mobile Accord's CEO and a key player in the project's development, declined to comment. Creative Associates referred questions to USAID.For more than two years, ZunZuneo grew, reaching at least 40,000 subscribers. But documents reveal the team found evidence Cuban officials tried to trace the text messages and break into the ZunZuneo system. USAID told the AP that ZunZuneo stopped in September 2012 when a government grant ended.
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    More coming related to this story.
Paul Merrell

Did U.S. choose war in Libya over Gadhafi abdication? - 0 views

  • More than Benghazi skeletons should haunt Hillary Clinton’s expected 2016 presidential bid. It now seems that the entire war in Libya – where thousands died in a civil war in which no U.S. interest was at stake – might well have been averted on her watch and, of course, that of President Obama. How? In March 2011, immediately after NATO’s punishing bombing campaign began, Moammar Gadhafi was “ready to step aside,” says retired Rear Adm. Charles R. Kubic, U.S. Navy. “He was willing to go into exile and was willing to end the hostilities.” What happened? According to Kubic, the Obama administration chose to continue the war without permitting a peace parley to go forward. Kubic made these extremely incendiary charges against the Obama administration while outlining his role as the leading, if informal, facilitator of peace feelers from the Libyan military to the U.S. military. He was speaking this week at the National Press Club in Washington, D.C., where the Citizens’ Commission on Benghazi was presenting its interim report. Kubic maintains that to understand Benghazi, the Sept. 11, 2012, attacks in which four Americans, including U.S. Ambassador Christopher Stevens, were killed, “you have to understand what happened at the beginning of the Libyan revolt, and how that civil war that created the chaos in Libya could have been prevented.” Particularly in light of his senior military experience, Kubic’s eyewitness story demands careful consideration. Like everything else about Benghazi, it also demands the official focus of a select committee investigation in Congress. A short chronology sets the stage:
Paul Merrell

Yemen's children at immediate risk of severe malnutrition | Scoop News - 0 views

  • More children in Yemen are at risk of dying from hunger and lack of health services than from bombs and bullets, the United Nations Children’s Fund (UNICEF) warned today amid ongoing fighting across the Gulf country.Briefing the press in Geneva, UNICEF spokesperson Christophe Boulierac warned that 120,000 children in Yemen remain at immediate risk of severe malnutrition over the coming three months if health and hygiene services failed to resume normal functioning.Mr. Boulierac explained that restrictions on commercial imports of fuel and food are largely to blame for the rapidly deteriorating situation facing the country’s children.He added that another 2.5 million children under five years of age were at immediate risk of diarrhoea while 1.2 children were likely to suffer from preventable diseases such as pneumonia and measles as vaccination campaigns had ground to a halt.
  • More than 1,400 people have been killed and 300,000 have fled their homes in nearly three months of fighting in the war-torn Gulf nation. Emergency relief and medical teams from abroad are struggling to fly in to scale-up the humanitarian operation to address the needs of increasingly vulnerable Yemenis.Insecurity and lack of fuel have also limited access to and delivery of services. Partners report difficulty providing medical services as result of the current security situation and continued airstrikes targeting Haradh, Sa'ada and Sana'a. Food relief partners have reported they have had to suspend assistance in several districts due to lack of fuel. Jens Laerke, for the Office for the Coordination of Humanitarian Affairs (OCHA), confirmed that regular commercial imports of fuel had become the main issue and called for them to increase. The primary obstacle, he explained, was an inspection regime instituted by a recent Security Council resolution and which had resulted in a crippling effect on humanitarian operations.In addition to the limited access to fuel, food imports had also been impacted, cautioned Mr. Laerke as he noted that 90 percent of the country depended on their food from imports.Against that backdrop, the UN’s World Health Organization (WHO) – which also addressed the briefing – cited reports of 484 suspected cases of dengue fever with two reported deaths.
  • A spokesperson for the WHO said the UN agency was on the ground and trying to send rapid diagnostic kits for both dengue and malaria but could not confirm the dengue cases without lab testing. The spokesperson added that between 19 March and 4 May the number of casualties across the country had shot up to 1,439 deaths and 5,951 injuries, including 71 children deaths.
Paul Merrell

General Reports Progress in Inherent Resolve Operations > U.S. DEPARTMENT OF DEFENSE > ... - 0 views

  • The Iraq Security Forces are making daily progress in Ramadi during a difficult counterattack against the Islamic State of Iraq and the Levant, the chief of staff of Combined Joint Task Force-Operation Inherent Resolve said today. Marine Corps Brig. Gen. Kevin J. Killea, briefed the press here on operations in Iraq and Syria and ongoing discussions with Turkey about their support in the campaign against ISIL.
  • Killea also provided an update on the Aug. 11 mortar attack against the Kurdish Peshmerga that, according to press reports, involved a chemical agent. Preliminary field tests show the presence of sulfur mustard, he confirmed, but full testing will take a few more weeks. In the meantime, forces in Iraq and Syria “really don't need another reason to hunt down ISIL and kill them wherever we can and whenever we can,” Killea said. But, he added, any indication of the use of a warfare agent reinforces the coalition position that ISIL is an abhorrent group that will kill indiscriminately without a moral or legal code or restraint. A couple of days after the attack, Killea said, “we were able to … take fragments from some of those mortar rounds and do a presumptive field test on those fragments and they showed the presence of HD, or what is known as sulfur mustard. That is a class-one chemical agent.” Such a presumptive test is not conclusive, he added, and the results indicate only the presence of that chemical. “It doesn't tell us anything more than that. So it is going to take us a couple of weeks to do the full testing on those fragments to figure out what was contained in or on those mortar rounds before we make a determination on exactly what it was, potentially how much it was and maybe even where it came from,” the general said.
Paul Merrell

Neither US nor Russia want Assad to Fall: Churkin | nsnbc international - 0 views

  • The Russian UN Envoy Vitaly Churkin told the press that the neither Russia nor the United States want Syrian President Bashar Al-Assad to fall. If the words of Russia’s top-diplomat hold true, this surprising consensus has been reached after over four years of war and US calls for the ousting of Assad. 
  • On Tuesday, Russian UN Envoy Vitaly Churkin told the US-American CBS that the government of the United States no longer wants the fall of Syrian President Bashar Al-Assad. The Russian top-diplomat told CBS: “I think this is one thing we share now with the United States, with the US government: They do not want the Assad government to fall. They do not want it to fall. They want to fight (Islamic State a.k.a. ISIS, ISIL or Daesh) in a way which is not going to harm the Syrian government. … On the other hand, they do not want the Syrian government to take advantage of their campaign against (IS). But they do not want to harm the Syrian government by their action. This is very complex,” Noting that Russia and the United States are getting closer to reaching a consensus about the situation in Syria, Churkin added: “They [US authorities] have made a lot great progress in understanding the complexities of the situation. To me, it is absolutely clear that … one of the very serious concerns of the American government now is that the Assad regime will fall and (IS) will take over Damascus and the United States will be blamed for that. “
  • As late as last week US President Barack Obama described Russia’s support for President Al-Assad as well as the limited Russian military presence in Syria as “a big mistake”. Some analysts would note that the presence of Russian “military advisers” plus additional arms deliveries to Syria have been a game changer in a period where US, Turkish and others increasingly discussed the “forming of a coalition of the willing” while circumventing the UN Security Council to oust “the Syrian dictator”. Churkin’s statement to CBS comes as a surprise after the US’ UN Envoy Samantha Power, on Monday, told CNN that: “doubling down on a regime that gases its people, that barrel bombs its people, that tortures people who it arrests simply for protesting and for claiming their rights – that’s just not going to work.  … Even if you were Machiavelli and all you cared about was ISIL [Islamic State of Iraq and the Levant – former name of IS], to support a regime like this and to not take account of the views of the vast majority of the Syrian people who want to go in a different direction is not going to either bring peace or actually succeed in defeating terrorism.”
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  • Churkin, for his part, stressed that Russia as well as Iran bear the biggest responsibility for the deterioration of the situation in Syria. He noted in turn, that it is pointless to point fingers and blame anyone for the Syrian crisis, adding that: “Everybody’s responsible. It is easy for me to point the finger but I think simply the situation was misjudged from the outset and then it was allowed to degenerate and how far it will go, I do not know.” Should Churkin’s statement about an US – Russian consensus about President Al-Assad hold true, than the war in Syria and Iraq could, potentially enter a new phase in which Turkey, whom Pakistani Major (r) Agha H. Amin described as “NATO’s odd wolf” could become NATO’s next target. Thus far, the development of the war in Syria has been largely consistent with the assessment Agha H. Amin made in a February 2013 interview with nsnbc ( see related article below).
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