Former FBI Assistant Director apparently isn’t afraid to embarrass himself to fear monger for law enforcement.
That’s the only conclusion I can reach by his penning this op-ed, which still bears its original title in the URL.
In it, Ronald T. Hosko claimed shamelessly that if Apple had been employing its new encryption plans earlier this year, a kidnap victim the FBI rescued would be dead. The two nut paragraphs originally read,
It made no sense! As Hosko correctly explained, they solved this case with lawful intercepts of phone content.
Once we identified potential conspirators, we quickly requested and secured the legal authority to intercept phone calls and text messages on multiple devices.
Even if the kidnappers had a new iPhone, FBI would still go to precisely the same source they did go to — the telecom providers — to get the intercepts. The FBI never even had the actual phones of kidnappers in hand — except for the phone the gang leader used to direct the plot from prison, which he crushed before it could be investigated, a technology that has been available to thugs far longer than encryption has.
So it is quite clear that, had this technology been used by the conspirators in this case, the FBI would still have caught them, using precisely the same process they did use to catch them..
After Hosko got called on his false claims on Twitter, he made two corrections — first to this interim fallback. (h/t @empirical error for catching this)
That didn’t make any more sense, as they were tracing calls made from the kidnappers. Once they got close enough to examine their actual devices, they had the kidnappers. Now he has changed it to read:
Last week, Apple and Google announced that their new operating systemswill be encrypted by default. Encrypting a phone doesn’t make it any harder to tap, or “lawfully intercept” calls. But it does limit law enforcement’s access to a data, contacts, photos and email stored on the phone itself.
That kind information can help law enforcement officials solve big cases quickly. For example, criminals sometimes avoid phone interception by communicating plans via Snapchat or video. Their phones contain contacts, texts, and geo-tagged data that can help police track down accomplices. These new rules will make it impossible for us to access that information. They will create needless delays that could cost victims their lives.*
* Editors note: This story incorrectly stated that Apple and Google’s new encryption rules would have hindered law enforcement’s ability to rescue the kidnap victim in Wake Forest, N.C. This is not the case. The piece has been corrected.
Phew. Apparently all this surveillance technology is hard to keep straight, even for an experienced FBI guy. But the truly funny part of Hosko’s piece — now that he at least has some semblance of factual accuracy (though I think he’s still exaggerating about video and Snapchat) — is where he suggests that we should not avail ourselves of any technologies that make it easier on criminals.
If our cutting edge technologies are designed to keep important dots out of the hands of our government, we all might start thinking about how safe and secure we will be when the most tech-savvy, dedicated criminals exponentially increase their own success rates.
This would lead you to believe Hosko is unaware of the “cutting edge technology” that has probably kept more crime-solving information out of the hands of the government than any measly encryption: incorporation. Drug cartels, human traffickers, even dreaded banksters all use shell corporations as a favored technology to not only hide the evidence of their crime, but to dodge accountability if it ever is discovered. That snazzy technology, the corporation, has empowered criminals far more than cell phone encryption — with all the possible workarounds — will ever do.
Yet if you called for eliminating a beneficial technology like the corporation just because criminals also happen to find it useful, people would consider you batshit insane. It would be a totally disproportionate measure, trading away real benefits in the name of relative but not absolute safety.
But hey! Hosko has already embarrassed himself. So if he feels like doing so again, by all means, I implore him to call for the elimination of the corporation — or even just a few of the exotic financial tools that the most dangerous financial criminals use.
After all, it will make us safer!
The handling of the BALCO series of investigations, both by lead investigator Jeff Novitsky and the US Attorneys office, has been relentlessly aggressive and marked by dubious, at best, tactics. Considering that the DOJ, during the entire time period, could not find the resources to prosecute the banksters who brought down the entire economy, BALCO was one of the most hideous wastes of taxpayer money imaginable.
Remarkably, the questionable tactics by DOJ may well be raising their ugly head yet again. Bonds’ appeal in the 9th Circuit is a somewhat mundane legal issue that has been fully briefed on the en banc petition for the better part of a year. The en banc hearing, before KOZINSKI, Chief Judge; and REINHARDT, O’SCANNLAIN, GRABER, WARDLAW, W. FLETCHER, RAWLINSON, CALLAHAN, N.R. SMITH, NGUYEN and FRIEDLAND, Circuit Judges is set for 2:00 pm tomorrow, Thursday September 18, 2014
Yet, less than 48 hours before the en banc rehearing is scheduled to commence, the DOJ has suddenly, and mysteriously, lodged sealed filings at 8:00 pm last night. These are Docket Numbers 64 and 65 respectively:
Filed UNDER SEAL Appellee USA motion to file a letter to the court under seal (PANEL). Deficiencies: None. Served on 09/16/2014.  (JFF)
Filed UNDER SEAL Appellee USA letter dated 09/16/2014 re: constructive amendment argument. (PANEL) Paper filing deficiency: None.  (JFF)
Here is Bonds’ Petition for Rehearing En Banc. Here is the previous panel decision in the 9th Circuit. If you don’t want to bother with the full pleadings, this article from the Orange County Breeze gives a nice synopsis of the scope of the en banc proceeding for Bonds.
As can quickly be discerned, the appeal centers really on common statutory interpretation as applied to the facts in the public trial record. The issue is whether there was sufficient evidence to convict Bonds because his statement describing his life as a celebrity child — in response to a question asking whether his trainer ever gave him any self-injectable substrances — was evasive, misleading, and capable of influencing the grand jury to minimize the trainer’s role in the distribution of performance enhancing drugs, and whether, under the law, that can properly constitute obstruction. I wrote an extensive piece arguing the weakness and infirmities of the verdict at the time it was handed down by the jury. Which is when the jury also acquitted Bonds of all the substantive underlying perjury counts.
Yes, the appeal is really that simple. So why, pray tell, does the DOJ need to be interjecting last minute sealed documents? What possible need could there be for anything to be sealed for this mundane criminal appeal? There may be a valid explanation, but it is nearly impossible to fathom what it could be.
I am willing to bet Bonds’ attorneys, Allen Ruby and Dennis Riordan, must be apoplectic.
UPDATE: Well well, I am sitting in Alice Cooperstown having lunch, waiting for my preliminary hearing to reconvene, and Josh Gerstein just sent me the answer to the question of this post. YES! Indeed the sealed filings are a slimy last minute trick pulled by the DOJ. DOJ was trying to insert grand jury testimony from the aforementioned government BALCO investigator, Jeff Novitsky, into the appeal when it has never, at any point of the proceedings, whether in the trial court or 9th Circuit, been part of the record or indictment.
Here is the responsive pleading just filed by Bonds’ attorney Dennis Riordan. Here is the pertinent part:
The grand jury transcripts referred to in the government’s motion and letter are not part of the record on appeal. Had they been before the district court in any form, the proper method of adding them to the appellate record would have been by means of a timely motion to correct or modify the record under Rule 10(e) of the Federal Rules of Appellate Procedure. The transcripts which are the subject of the government’s motion, however, were never placed before the district court in either pretrial, trial, or post-trial proceedings. Notably, the declaration of AUSA Merry Jean Chan which accompanies the government’s motion makes no claim that the transcripts were filed with the district court. “Papers not filed with the district court or admitted into evidence by that court are not part of the clerk’s record and cannot be part of the record on appeal.” Kirshner v. Uniden Corp. of Am., 842 F.2d 1074, 1077 (9th Cir. 1988) (citing, inter alia, United States v. Walker, 601 F.2d 1051, 1054–55 (9th Cir.1979)).
Should the Court nonetheless wish to consider the transcripts in question, they fully support Mr. Bonds’s argument that the district court constructively amended the indictment by instructing on “Statement C” as a basis for conviction on the Count Five obstruction count, although that statement was not contained in the indictment. In his testimony, in discussing Statement C, then labeled “Statement F” before the grand jury, Novitsky admitted that Mr. Bonds had responded to the pending question—“Did Greg ever give you anything that required a syringe to inject yourself with?”—with a “denial” before veering off into a digression about “being a celebrity child.” (RT of February 3, 2011, at 110.) Novitsky’s admission that the prosecutor’s question was in fact answered by Mr. Bonds constituted a good reason why the grand jury would not have relied on Statement C in indicting on the obstruction charge. The only manner of accurately ascertaining whether a grand jury relied on an act in indicting is by the inclusion of that act in the indictment itself. Here, Statement C was expressly excised from the indictment by the use of asterisks. See Appellant Bonds’s Petition for Rehearing En Banc, at 16.
Hilarious. DOJ tries a patently inappropriate punk move and Dennis Riordan turns it around to bite them in the butt. Quite well deserved. You have to hand it to the DOJ in the BALCO cases, they are nothing if not consistently ethically dubious.
Greek shipping magnate Victor Restis is suing the group for defamation, claiming they falsely accused him of being an Iranian front.
The group said it had uncovered a letter proving there was a plan to do business in Iran. It also accused Mr. Restis of using his ships in support of Iran’s oil industry.
Mr. Restis said the letter was fraudulent, the illicit Iranian deal never existed, and his ships made only authorized humanitarian shipments. He accused the group of shaking down companies for donations; the group in turn accused him of being a “master criminal.”
The group said it based its accusations on “valid research, credible documents, distinguished relationships, and pre-eminent sourcing.” In court, Mr. Restis demanded that the group disclose those documents and its relationships.
Soon after that demand, Mr. Restis said he was approached by an Israeli businessman, Rami Ungar, with no direct connection to United Against Nuclear Iran.
According to court documents filed by Mr. Restis’s lawyers, Mr. Ungar knew details about the case and said he was “authorized to try to resolve the issues” on behalf of the group’s supporters.
It was not clear who those supporters were. Like many nonprofit groups, its donor list is secret. Mr. Restis’s lawyers said in a letter to the judge in April that they had uncovered information that United Against Nuclear Iran “is being funded by foreign interests.”
DOJ suggested they might claim a law enforcement exception to protect the files, though it has not yet formally claimed such a privilege. That might suggest the files are Treasury files that may soon be used to impose sanctions on Restis. Or perhaps it means they have files that don’t meet Treasury’s standards for imposing sanctions, and UANI exists to shame people where sanctions are unavailable. In any case, Restis wants to know how Ungar got them; I’d like to know precisely what UANI is getting from whom.
Apuzzo lists some of the characters who are behind the group: former Mideast Peace Envoy Dennis Ross, Fran Townsend, and Joe Lieberman. Otto Reich, whose role in Iran-Contra (as opposed to his role in trying to overthrow Hugo Chavez in the 2002 coup) involved illegally funneling taxpayer dollars for the purposes of lobbying, is of particular note. Restis is particularly interested in interviewing UANI advisor Meir Dagan, the long-time head of Mossad; Restis believes Dagan provided the documents to Ungar. In addition, Richard Dearlove, who was in charge of sexing up the British case for war in 2003 when he was MI6, also advises the group.
in other words, it’s a classic case of a quasi-governmental group, one that apparently plays an extra-legal purpose in the campaign to isolate Iran (to be fair, most, though not all, of its advisors have worked hard to stave off war). And Restis’ efforts to get some kind of justice against it may be stymied by US claims they’ve got privileged interests in the case.
The entire episode raises some very good questions about what goes into isolating our adversaries.
In a JustSecurity post reviewing the same speech that I observed ignored US failures to prevent violent extremism, NYU Professor Samuel Rascoff defends the US use of counterterrorism stings, even in spite of the details revealed by HRW’s report on all the problems related to them. David Cole has an excellent response, which deals with many of the problems with Rascoff’s argument.
I’d like to dispute a more narrow point Rascoff made when he suggested that, because we have so many fewer trained militants than the Europeans, we “can afford” the “luxury” of stings.
There are now approximately 3,000 European passport holders fighting in Syria and Iraq. In the time that it took Najibullah Zazi to drive from Denver to New York, a fighter could drive from Aleppo to Budapest. What that means is that European officials are relatively more consumed than American counterparts in keeping up with, and tabs on, trained militants. Orchestrating American-style sting operations is, in a sense, a luxury they cannot afford.
The claim is astonishing on its face, in that it suggests that, because we don’t have real militants like Europe does, we should engage in the “luxury” of entrapping confused young Muslim men and sending them to expensive decades-long prison terms.
Think a bit more about that notion of “luxury” and the financial choices we make on law enforcement. Here are some numbers taken from two sources: the HRW report (I basically searched on the dollar sign, though this doesn’t include every mention of dollars) and today’s Treasury settlement with Bank of America for helping 10 drug kingpins launder their money over a four year period, three years of which constituted “egregious” behavior.
First, HRW reports that FBI spends over $1.3 billion a year on counterterrorism, much of it stings, leaving less than $2 billion for all other investigations.
More than 40 percent of the FBI’s operating budget of $3.3 billion is now devoted to counterterrorism.
That allows the FBI to pay some of its informants and experts hefty sums.
Beginning in August 2006, the FBI paid Omar $1,500 per week during the investigation. Omar received a total of $240,000 from the FBI. This included: $183,500 in payment unrelated to expenses, and $54,000 for expenses incurred during the investigation including car repair and rent.
“Kohlmann is an expert in how to use the Internet, like my 12-year-old. He has found all the bad [stuff] about Islam, and testifies as if what he is reading on the Internet is fact. He was paid around $30,000 to look at websites, documents, and testify.”
These informants sometimes promise — but don’t deliver — similar hefty sums to the guys they’re trying to entrap.
Forty-five-year-old James Cromitie was struggling to make ends meet when, in 2009, FBI informant Hussain offered him as much as $250,000 to carry out a plot which Hussain—who also went by “Maqsood”—had constructed on his own.
The informant proposed to lend Hossain $50,000 in cash so long as he paid him back $2,000 monthly until he had paid back $45,000.
Which is particularly important because many of these guys are quite poor (and couldn’t even afford to commit the crimes they’re accused of).
At the time he was in contact with the informant and the undercover [agent] he was living at home with his parents in Ashland and he didn’t have a car, he didn’t have any money and he didn’t have a driver’s license because he owed $100 and he didn’t have $100 to pay off the fine. In various parts of the investigation he didn’t have a laptop and he didn’t have a cellphone. At one point the informant gave him a cell phone.
And some of these crimes (the very notable exceptions in the HRW report include two material support cases, both of which are close calls on charity designations, but which involved very large sums, $13 million a year in the case of Holy Land Foundation) involve relatively minscule sums.
According to the prosecution, Mirza was the ringleader in collecting around $1,000—provided by the FBI agents and co-defendant Williams—that he handed to a middleman with the intent that it go to families of Taliban fighters.
So one theme of the HRW report is we’re spending huge amounts entrapping what are often poor young men in miniscule crimes so taxpayers can pay $29,000 a year to keep them incarcerated for decades.
These are the stakes for what Rascoff calls a “luxury.” At a time of self-imposed austerity, these stings are, indeed, a luxury.
Compare that to what happens to Bank of America, which engaged in “egregious” violations of bank reporting requirements for three years (and non-egregious ones for a fourth), thereby helping 10 drug kingpins launder their money. No one will go to jail. Bank of America doesn’t even have to admit wrong-doing. Instead, it will have to pay a $16.5 million fine, or just 0.14% of its net income last year.
This settlement came out of a Treasury investigation, not an FBI one.
But when DOJ’s Inspector General investigated what FBI did when it was given $196 million between 2009 and 2011 to investigate (penny ante) mortgage fraud, FBI’s focus on the issue actually decreased (and DOJ lied about its results). When FBI decided to try to investigate mortgage fraud proactively by using undercover operations, like it does terrorism and drugs, its agents just couldn’t figure out how to do so (in many cases Agents were never told of the effort), so the effort was dropped.
Banks commits crimes on a far grander scale than most of these sting targets. But FBI throws the big money at its counterterrorism stings, and not the banks leaching our economy of its vitality.
Rascoff accuses HRW’s and similar interventions of being one-dimensional.
[F]or all the important questions about official practices that critics raise, they have tended to ignore some hard questions about the use of stings and the tradeoffs they entail.Instead, their interventions have an exaggerated, one-dimensional quality to them.
But he himself is guilty of his own crime. Because every kid the FBI entraps in a $240,000 sting may represent an actual completed bank crime that will never be investigated. It represents an opportunity cost. The choice is not just sting or no sting or (more accurately, as David Cole points out) sting or community outreach and cooperation.
Rather, the choice is also between manufacturing crimes to achieve counterterrorism numbers or investigating real financial crimes that are devastating communities.
So long as we fail to see that tradeoff, we fail to address one major source of the economic malaise that fuels other crimes.
Ignoring bank crimes is, truly, something we don’t have the luxury of doing. Nevertheless, we continue to choose to go on doing so, even while engaging in these “luxurious” counterterrorism stings that accomplish so little.
A group of privacy and security organizations have just sent President Obama a letter asking him to issue a veto threat over the Cybersecurity Information Sharing Act passed out of the Senate Intelligence Committee last week. It’s a great explanation of why this bill sucks and doesn’t do what it needs to to make us safer from cyberattacks. It argues that CISA’s exclusive focus on information sharing — and not on communications security more generally — isn’t going to keep us safe.
Which is why it really pays to look at the role of SIFMA — the Securities Industry and Financial Markets Association – in all this.
As I’ve noted, they’re the banksters whom Keith Alexander is charging big bucks to keep safe. As Bloomberg recently reported, Alexander has convinced SIFMA to demand a public-private cyber war council, involving all the stars of revolving door fearmongering for profit.
Wall Street’s biggest trade group has proposed a government-industry cyber war council to stave off terrorist attacks that could trigger financial panic by temporarily wiping out account balances, according to an internal document.
The proposal by the Securities Industry and Financial Markets Association, known as Sifma, calls for a committee of executives and deputy-level representatives from at least eight U.S. agencies including the Treasury Department, the National Security Agency and the Department of Homeland Security, all led by a senior White House official.
The trade association also reveals in the document that Sifma has retained former NSA director Keith Alexander to “facilitate” the joint effort with the government. Alexander, in turn, has brought in Michael Chertoff, the former U.S. Secretary of Homeland Security, and his firm, Chertoff Group.
Public reporting positions SIFMA as the opposition to the larger community of people who know better, embracing this public-private war council approach.
Kenneth Bentsen, chief executive at the Securities Industry and Financial Markets Association, said in a statement that leaders of the Senate Intelligence panel who wrote the bill have “taken a balanced and considered approach which will help the financial services industry to better protect our customers from cyber terrorists and criminals, as well as their privacy.”
According to the same banksters who crashed our economy 6 years ago, this bill is about protecting them at the expense of our privacy and rule of law.
Cyber attacks are increasingly a major threat to our financial system. As such, enhancing cyber security is a top priority for the financial services industry. SIFMA believes we have an obligation to do everything possible to protect the integrity of our markets and the millions of Americans who use financial services every day.
However, the threat increases every day. SIFMA and its members have undertaken additional efforts to develop cyber defense standards for the securities industry sector as a follow on to the recently published NIST standards. And we are developing enhanced recovery protocols for market participants and regulators in the event of an attack that results in closure of the equity and fixed income markets. We are undertaking this work in close collaboration with our regulators and recently held a meeting to brief them on our progress. And, we plan to increase our efforts even further as the risks are too great for current efforts alone.
We know that a strong partnership between the private sector and the government is the most efficient way to address this growing threat. Industry and investors benefit when the private sector and government agencies can work together to share relevant threat information. We would like to see more done in Congress to eliminate the barriers to legitimate information sharing, which will enable this partnership to grow stronger, while protecting the privacy of our customers.
This is not — contrary to what people like Dianne Feinstein are pretending — protecting the millions who had their credit card data stolen because Target was not using the cyberdefenses it put into place.
Rather, this is about doing the banksters’ bidding, setting up a public-private war council, without first requiring them to do basic things — like limiting High Frequency Trading — to make their industry more resilient to all kinds of attacks, from even themselves.
Meanwhile, if that’s not enough indication this is about the bankstsers, check out what Treasury Secretary Jack Lew is doing this afternoon.
In the afternoon, the Secretary will visit Verizon’s facilities in Ashburn, Virginia to discuss cybersecurity and highlight the important role of telecommunications companies in supporting the financial system.
Just what we need: our phone provider serving the interests of the financial system first.
DiFi wants to make it easier to spy on Americans domestically to help private companies that have already done untold damage to Main Street America. We ought to be protecting ourselves from them, not degrading privacy to subsidize their insecure practices.
I’ve been tracking Keith Alexander’s utterly predictable new gig, getting rich off of having drummed up cybersecurity concerns for the last several years, while at the same time shacking up with the most dubious of shadow bank regulators, Promontory Financial Group.
Apparently, I’m not the only one. Alan Grayson just sent some of the entities that Alexander has been drumming up business with — the Security Industries and Financial Markets Association, Consumer Bankers Association, and Financial Services Roundtable — a letter asking how the former NSA Director can be making a reported $600,000 a month. He cites Bruce Schneier wondering whether part of the deal is that Alexander will share classified information he learned while at NSA.
Security expert Bruce Schneier noted that this fee for Alexander’s services is on its face unreasonable. “Think of how much actual security they could buy with that $600K a month.Unless he’s giving them classified information.” Schneier also quoted Recode.net, which headlined this news as: “For another million, I’ll show you the back door we put in your router.”
Disclosing or misusing classified information for profit is, as Mr. Alexander well knows, a felony. I question how Mr. Alexander can provide any of the services he is offering unless he discloses or misuses classified information, including extremely sensitive sources and methods. Without the classified information that he acquired in his former position, he literally would have nothing to offer to you.
Please send me all information related to your negotiations with Mr. Alexander, so that Congress can verify whether or not he is selling military and cybersecurity secrets to the financial services industry for personal gain.
Alexander is just the latest of a long line of people who profit directly off driving up the cybersecurity threat. But — as Recode.net notes — he’s also got the kind of inside information that could be particularly valuable.
As the Intelligence Industrial Complex and the Banking industry hop into bed together, there ought to be some transparency about just what kind of deals are being made. There’s simply too much immunity handed out to this community to let boondoggles like Alexander’s slide.
The intelligence community is subjecting every low level clearance holder to intense scrutiny right now. But thus far, there has not been a peep from those quarters that the former DIRNSA could command these fees for the expertise gained while overseeing the nation’s secrets.
Bloomberg provides more details on how much: his asking price starts at $1M a month, from which he negotiates down to a mere $600,000.
Alexander, 62, said in the interview he was invited to give a talk to the Securities Industry and Financial Markets Association, known as Sifma, shortly after leaving the NSA and starting his firm, IronNet Cybersecurity Inc. He has met with other finance groups including the Consumer Bankers Association, the Financial Services Roundtable and The Clearing House.
At the sessions, Alexander discussed destructive computer programs such as Wiper, which the U.S. government said was notable because attacks using it appeared to originate from North Korea and Iran. “I told them I did think they could defend against that,” Alexander said.
Still, despite the banks’ growing investments in computer security, Alexander said, “many of them aren’t really confident they’re getting their money’s worth.”
Alexander offered to provide advice to Sifma for $1 million a month, according to two people briefed on the talks. The asking price later dropped to $600,000, the people said, speaking on condition of anonymity because the negotiation was private.
Alexander declined to comment on the details, except to say that his firm will have contracts “in the near future.”
The article talks in terms of the DDoS attacks launched against US bank websites last year, as well as Wiper, which is allegedly tied to the StuxNet family (and therefore is something with which ALexander ought to be intimately familiar).
What he doesn’t seem to be promising he can fix are things like the recent hack of a hedge fund’s High Frequency Trading algorithms (about which I am simply failing not to laugh hysterically at … sorry, hedgies).
No wonder the banks doubt they’re getting their money’s worth.
It’s hard to read this as anything but a scam. Not only has Alexander spent the last year talking up the risk of cyberattacks, not only has he had access to whatever bank secrets haven’t been encrypted for the last 8 years, plus the double dipping in SWIFT databases. But he also knows what holes NSA hasn’t fixed.
Ultimately, though, this all serves to obscure the fact that these banks are rickety all by themselves, with or without a hacker’s help (which is one reason I’m laughing at that HFT hack). There’s only so much you can do to harden that target, and the banks won’t do it.
In its report on how the NSA collects every cell phone conversation that takes place in the Bahamas, The Intercept focuses on the use of such intercepts for drug investigations (indeed, one of the other countries targeted in the MYSTIC program is Mexico, which clearly has a DEA angle).
But one memo indicates that SOMALGET data is covertly acquired under the auspices of “lawful intercepts” made through Drug Enforcement Administration “accesses”– legal wiretaps of foreign phone networks that the DEA requests as part of international law enforcement cooperation.
When U.S. drug agents need to tap a phone of a suspected drug kingpin in another country, they call up their counterparts and ask them set up an intercept. To facilitate those taps, many nations – including the Bahamas – have hired contractors who install and maintain so-called lawful intercept equipment on their telecommunications.
Perhaps the most telling part of the article, however, is that NSA/DEA don’t appear to be using this facility to track money launderers.
If the U.S. government wanted to make a case for surveillance in the Bahamas, it could point to the country’s status as a leading haven for tax cheats, corporate shell games, and a wide array of black-market traffickers. The State Department considers the Bahamas both a “major drug-transit country” and a “major money laundering country” (a designation it shares with more than 60 other nations, including the U.S.). According to the International Monetary Fund, as of 2011 the Bahamas was home to 271 banks and trust companies with active licenses. At the time, the Bahamian banks held $595 billion in U.S. assets.
They’re tracking pot, but not bothering to track the dollars that drive the pot.
So aside from the hubris of stealing off of the cell phone calls from Bahama, this is also a testament to the US’ misplaced priorities, its inability to understand how its coddling of tax havens serve to drive the drug trade.
In the 26th paragraph of a 32-paragraph article reporting on how FBI will remain terror terror terror under Jim Comey’s watch (albeit, potentially, with a more particularized focus, which would be welcome), this detail appears:
Mr. Comey said he also wanted to apply the lessons learned in fighting terrorism to fighting other crimes. If Congress approves, he plans to move the bureau’s head of intelligence out of the national security division and create a new intelligence branch that will amass information on crimes like fraud in an effort to more quickly identify trends and perpetrators.
I look forward to learning more about this proposal (and we shall see whether Congress permits Comey to make this move, though he is still Congress’ darling). Plus, it’s unclear whether “fraud” means the small-time fraud propagated by local businessmen or whether it’s the kind Jamie Dimon has gotten rich off of.
Still, it’s a much needed idea. While it poses the risk of expanding the use of intrusive intelligence tools, it also might lead us to establishing a better standard for the use of such intelligence.
TurboTax Timmeh Geithner’s book has been out about a week or ten days. And it seems to have had a remarkable effect: teaching DC that the memoirs from figures of power are often as not autobiographical fiction as real historical fact.
But I’m particularly happy to see this plaintive discovery from Felix Salmon, after comparing TurboTax Timmeh’s account of a speech with the actual transcript.
As I read the rest of Geithner’s book, then, I’m basically forced to treat the author as an unreliable narrator. Geithner might seem to be straight-up and guileless, but his report of this speech shows that he can remember things — even things which are easily found on the internet — in an extremely self-serving manner. Maybe that’s only to be expected, from a political memoir. But it’s disappointing, all the same.
And I’m grateful that Marketwatch has deployed the slide show click bait genre into a list of all the things TurboTax Timmeh chooses to remain silent about.
I guess I just find the acceleration of attention on TurboTax Timmeh’s self-serving fictions welcome given that I’ve never seen similar focus on the lies that get spun for National Security figures: not for John Rizzo, not for Jose Rodriguez, not for Dick Cheney, in spite of abundant public documentation that those were fictional narratives.
Perhaps TurboTax Timmeh is just a more egregious example than these others, though I doubt it. They all did great damage, and boasted while they did so.
I hope, then, that the clear debunking of TTT’s autobiographical fiction will serve as a model response the next time someone in power attempts to get rich by telling lies.