@StateDept: That’s a question we ask ourselves every day: where is Brett today?

Posted: 2:41 am ET
Updated: 9/14/16 1:30 am ET – Where is Brett today? Now in Baghdad, scroll below.

 

Via the DPB on 9/12/16:

QUESTION: Could you update us on Brett McGurk’s travels? Yesterday, he tweeted a photo of the sun setting in Syria. Was he recently in Syria? And last night, he tweeted that he was flying overseas. Where is he going?

MR KIRBY: That’s a question we ask ourselves every day: where is Brett today? I actually don’t have an update for his – on his schedule, so we’ll see if we can get his staff to give us something we can provide to you. I just don’t have the details on exactly where he is right now.

 

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HOGR Democrats Invoke 1928 Statute Then Release in Full Colin Powell’s Email Tips to #HillaryClinton

Posted: 1:45 am ET

 

Remember when former Secretary of State Colin Powell said this:

On September 7, Rep. Elijah E. Cummings, Ranking Member of the House Committee on Oversight and Government Reform (HOGR), publicly released an email exchange between former Secretary of State Colin Powell and then-Secretary of State Hillary Clinton in January 2009 on the use of blackberry and personal email. The bit about official records is going to drive FOIA advocate nuts.

According to Cummings’ press release, he obtained the email exchange between Secretary Powell and Secretary Clinton through a unique statutory provision known as the “Seven Member Rule” in which any seven members of the Oversight Committee may obtain federal records from federal agencies.

The Seven Member Rule is unique authority passed by Congress and signed by the President in 1928 that requires any executive agency to “submit any information requested of it relating to any matter within the jurisdiction of the committee” when requested by seven members of the Committee on Oversight and Government Reform.

The Members requested the Powell-Clinton emails by September 6, 2016. Two emails were produced by the State Department to the House Oversight Committee on September 6, 2016, and clearly marked “NOT FOR PUBLIC RELEASE.”  But of course, it was publicly released in full on September 7, 2016 with only one redaction; presumably, Secretary Powell’s AOL email address.

 

Read directly via the House Oversight Committee here (PDF).

 

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No Drama Obama Gets Lots of Drama in Asia, Plus Special G20 Surprise in South China Sea

Posted: 3:24 am ET

 

President Obama’s trip to Asia this week got off on a wrong foot. See POTUS in China: A ‘Staircase Snub’, Shouting Matches, and an Apology For a ‘Mistaken’ Tweet. Then on Monday, Philippine President Rodrigo Duterte got foul-mouthy with his early warning threat to President Obama potentially discussing the drug killings in the Philippines (also see Philippine President Calls the US Ambassador to Manila WHAT?). According to the CRS,  the Philippines has been one of the largest recipients of U.S. foreign assistance in Southeast Asia in the past decade, including both military and development aid. It also relies heavily upon the United States for its external security.  According to this 2015 piece, “the archipelago’s sailing force is made up of half-century-old antiques—and is falling apart.” And yet, here is President Duterte with his lovely manners.

 

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POTUS in China: A ‘Staircase Snub’, Shouting Matches, and an Apology For a ‘Mistaken’ Tweet

Posted: 2:30 am ET

 

 

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Nine Latin American Countries Request Review of U.S. “Wet Foot/Dry Foot” Policy For Cuban Migrants

Posted: 3:14 am ET

 

WaPo has a quick explainer on the “wet-foot/dry-foot” policy,  the informal name given to a 1995 agreement under which Cuban migrants seeking passage to the United States who are intercepted at sea (“wet feet”) are sent back to Cuba or to a third country, while those who make it to U.S. soil (“dry feet”) are allowed to remain in the United States. The policy, formally known as the U.S.-Cuba Immigration Accord, has been written into law as an amendment to the 1966 Cuban Adjustment Act. Read more here. Last year, the Miami Herald reported that in FY2015 (Oct. 1, 2014, and Sept. 30, 2015), the U.S. Coast Guard stopped 4,462 Cubans who attempted to illegally enter the United States by sea.  In FY2014 (before normalization) , 2,059 Cubans were apparently caught at sea, according to WaPo citing Coast Guard data. The traffic has more than doubled probably due to fears that with normalization, the policy will soon end.  An ongoing petition to Congress to End Wet foot, Dry Foot Policy currently has 1,682 letters sent to-date.  

Yesterday, the Ecuadoran Embassy in Washington, D.C. delivered a letter signed by nine Latin American countries “expressing their deep concern about the negative effects of U.S. immigration policy across the region.”  The letter sent to Secretary John Kerry was signed by Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua, Panama and Peru.  The joint letter also ends with the Foreign Ministers calling on Secretary Kerry to attend a High Level meeting to review this issue.

Below is from the Ecuadoran Embassy’s statement online:

The 1966 U.S. Public Law 89-732, known as the “Cuban Adjustment Act”, and the policy commonly known as “wet foot, dry foot” have encouraged a disorderly, irregular and unsafe flow of Cubans who, risking their lives, pass through our countries in order to reach the US.” 

They add that this is creating a serious humanitarian crisis for Cuban citizens, with the nine Foreign ministers stating that:

“Cuban citizens risk their lives, on a daily basis, seeking to reach the United States. These people, often facing situations of extreme vulnerability, fall victim to mafias dedicated to people trafficking, sexual exploitation and collective assaults. This situation has generated a migratory crisis that is affecting our countries.”

The signatories believe that to reduce the threats faced by Cuban migrants, it is necessary to address “the main cause of the current situation”. Revising the Cuban Adjustment Act and the ‘wet foot, dry foot’ policy “would be a first step to stop the worsening of this complex situation and would form part of a final agreement to ensure orderly and regular migration in our region.”

Addressing the initiative, the Ecuadorian Foreign Minister, Guillaume Long, said:

“The fact that nine foreign ministers have signed this letter shows the strength of feeling in Latin America about how US policy is creating an immigration crisis in our region.

Encouraged by the US “wet foot, dry foot” policy, Cuban migrants often become victims of trafficking, sexual exploitation and violence. It is time for the United States to change its outdated policy for Cuban migrants, which is undermining regular and safe migration in our continent.

This policy is also discriminatory. Ecuadorian migrants often have to live for decades with the threat of deportation, whereas Cuban citizens arriving in the US have the opportunity of residency after living there for a year and after five-years of residency they can apply for obtain citizenship. 

This injustice must end for everyone’s benefit.”

The State Department’s spokesperson was asked about this in Tuesday’s Daily Press Briefing, and here is the unexciting response:

QUESTION: Cuba. Nine Latin American countries have sent a letter to the Administration saying that U.S. policy, its wet foot/dry foot policy which guarantees citizenship to Cubans who make it to U.S. soil, is creating an immigration crisis for those countries through which they pass, and asked the Administration to review that policy. Do you have a response to that, and is there any review likely to be made?

MR KIRBY: Well, I’ll tell you a couple things. So we did receive the letter that you’re referring to signed by nine foreign ministers from Latin America about what is known as the Cuban Adjustment Act. Obviously, we are concerned for the safety of all migrants throughout the region, including migrants seeking to journey northward through South and Central America and Mexico. Irregular migration often involves dangerous journeys that illustrate the inherent risks and uncertainties of involvement with organized crime, including human smugglers and trafficklers – traffickers, excuse me, in attempts to reach the United States.

We continue to encourage all countries to respect the human rights of migrants and asylum seekers, and to ensure that they are treated humanely. And we’re going to continue to, obviously, engage governments in the region on this issue going forward. So we did receive the letter. I’d refer you to the authors of the letter for any more specific information on its content. I have no meetings to announce at this time, and the Cuban Adjustment Act remains in place and wet foot/dry foot remains U.S. policy regarding Cuban migration.

 

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FBI Employee Pleads Guilty to Acting in the United States as an Agent of the Chinese Government

Posted: 12:15 am ET

 

Via DOJ | Defendant Collected and Caused Sensitive FBI Information to be Provided to the Chinese Government

Kun Shan Chun, a native of the People’s Republic of China and a naturalized U.S. citizen, pleaded guilty today to a criminal information charging him with acting in the United States as an agent of China without providing prior notice to the Attorney General.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Preet Bharara of the Southern District of New York and Assistant Director in Charge Diego P. Rodriguez of the FBI’s New York Field Office made the announcement.

Chun, aka Joey Chun, 46, pleaded guilty before U.S. Magistrate Judge James C. Francis IV of the Southern District of New York.  He was an employee of the FBI until his arrest on March 16, 2016.

“Kun Shan Chun violated our nation’s trust by exploiting his official U.S. Government position to provide restricted and sensitive FBI information to the Chinese Government,” said Assistant Attorney General Carlin.  “Holding accountable those who work as illegal foreign agents to the detriment of the United States is among the highest priorities of the National Security Division.”

“Americans who act as unauthorized foreign agents commit a federal offense that betrays our nation and threatens our security,” said U.S. Attorney Bharara.  “And when the perpetrator is an FBI employee, like Kun Shan Chun, the threat is all the more serious and the betrayal all the more duplicitous.  Thanks to the excellent investigative work of the FBI’s Counterintelligence Division, the FBI succeeded in identifying and rooting out this criminal misconduct from within its own ranks.”

“No one is above the law, to include employees of the FBI,” said Assistant Director in Charge Rodriguez.  “We understand as an agency we are trusted by the public to protect our nation’s most sensitive information, and we have to do everything in our power to uphold that trust.”

According to the complaint, the information and statements made during today’s court proceeding:

In approximately 1997, Chun began working at the FBI’s New York Field Office as an electronics technician assigned to the Computerized Central Monitoring Facility of the FBI’s Technical Branch.  In approximately 1998, and in connection with his employment, the FBI granted Chun a Top Secret security clearance and his duties included accessing sensitive, and in some instances classified, information.  In connection with a progressive recruitment process, Chun received and responded to taskings from Chinese nationals and at least one Chinese government official (Chinese Official-1), some, if not all, of whom were aware that Chun worked at the FBI.  On multiple occasions prior to his arrest in March 2016, at the direction of Chinese government officials, Chun collected sensitive FBI information and caused it to be transmitted to Chinese Official-1 and others, while at the same time engaging in a prolonged and concerted effort to conceal from the FBI his illicit relationships with these individuals.

Beginning in 2006, Chun and some of his relatives maintained relationships with Chinese nationals purporting to be affiliated with a company in China named Zhuhai Kolion Technology Company Ltd. (Kolion).  Chun maintained an indirect financial interest in Kolion, including through a previous investment by one of his parents.  In connection with these relationships, Chinese nationals asked Chun to perform research and consulting tasks in the United States, purportedly for the benefit of Kolion, in exchange for financial benefits, including partial compensation for international trips.

Between 2006 and 2010, Chun’s communications and other evidence reflect inquiries from purported employees of Kolion to Chun while he was in the United States, as well as efforts by the defendant to collect, among other things, information regarding solid-state hard drives.

In approximately 2011, during a trip to Italy and France partially paid for by the Chinese nationals, Chun was introduced to Chinese Official-1, who indicated that he worked for the Chinese government and that he knew Chun worked for the FBI.  During subsequent private meetings conducted abroad between the two, Chinese Official-1 asked questions regarding sensitive, non-public FBI information.  During those meetings, Chun disclosed, among other things, the identity and potential travel patterns of an FBI Special Agent.

In approximately 2012, the FBI conducted a routine investigation relating to Chun’s Top Secret security clearance.  In an effort to conceal his relationships with Chinese Official-1 and the other Chinese nationals purporting to be affiliated with Kolion, Chun made a series of false statements on a standardized FBI form related to the investigation.  Between 2000 and March 16, 2016, Chun was required by FBI policy to disclose anticipated and actual contact with foreign nationals during his international travel, but he lied on numerous pre- and post-trip FBI debriefing forms by omitting his contacts with Chinese Official-1, other Chinese nationals and Kolion.

On multiple occasions, Chinese Official-1 asked Chun for information regarding the FBI’s internal structure.  In approximately March 2013, Chun downloaded an FBI organizational chart from his FBI computer in Manhattan.  Chun later admitted to the FBI that, after editing the chart to remove the names of FBI personnel, he saved the document on a piece of digital media and caused it to be transported to Chinese Official-1 in China.

Chinese Official-1 also asked Chun for information regarding technology used by the FBI.  In approximately January 2015, Chun took photos of documents displayed in a restricted area of the FBI’s New York Field Office, which summarized sensitive details regarding multiple surveillance technologies used by the FBI.  Chun sent the photographs to his personal cell phone and later admitted to the FBI that he caused the photographs to be transported to Chinese Official-1 in China.

In approximately February 2015, the FBI caused an undercover employee (UCE) to be introduced to Chun.  The UCE purported to be a U.S. citizen who was born in China and working as a consultant to several firms, including an independent contractor for the Department of Defense, among other entities.

During a recorded meeting in March 2015, Chun told the UCE about his relationship with Kolion and Chinese nationals and later explained to the UCE that Kolion had “government backing,” and that approximately five years prior a relative met a “section chief” whom Chun believed was associated with the Chinese government.

In another recorded meeting in June 2015, Chun told the UCE that he had informed his Chinese associates that the UCE was a consultant who might be in a position to assist them.  Chun said that he wished to act as a “sub-consultant” to the UCE and wanted the UCE to “pay” him “a little bit.”   In July 2015, after coordinating travel to meet Chun’s Chinese associates, Chun met with the UCE in Hungary twice.  During one of the meetings, Chun stated that he knew “firsthand” that the Chinese government was actively recruiting individuals who could provide assistance and that the Chinese government was willing to provide immigration benefits and other compensation in exchange for such assistance.  The UCE told Chun that he had access to sensitive information from the U.S. government.  Chun responded that his Chinese associates would be interested in that type of information and that Chun expected a “cut” of any payment that the UCE received for providing information to the Chinese government.

The count of acting in the United States as an agent of China without providing notice to the Attorney General carries a maximum sentence of 10 years in prison.  The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

The FBI’s Counterintelligence Division investigated the case.  The prosecution is being handled by Assistant U.S. Attorneys Emil J. Bove III and Andrea L. Surratt of the Southern District of New York’s Terrorism and International Narcotics Unit, with assistance provided by Trial Attorneys Thea D. R. Kendler and David C. Recker of the National Security Division’s Counterintelligence and Export Control Section.

Related files:

Office of Legal Adviser’s Doctored Video Report Nets an “E” For Empty (Updated With OIG Comment)

Posted: 3:17 am ET
Updated: 2:06 PT — Comments from State/OIG

 

UpdateOIG conducted an independent preliminary assessment of issues surrounding missing footage from the Department’s December 2, 2013, daily press briefing (DPB). Specifically, OIG examined whether sufficient evidence is available for review and whether the issues in question are suitable for any further work. As part of this effort, OIG interviewed relevant staff; reviewed relevant emails, documents, and Department policies; and consulted with the Office of the Legal Adviser and the National Archives and Records Administration (NARA).

The results of our preliminary assessment show that limited evidence exists surrounding the December 2 DPB and that the available facts are inconclusive. However, the identification of the missing footage prompted the Department to improve its video policies. Specifically, the Department explicitly prohibited DPB content edits and is currently working with NARA to schedule the DPBs for disposition as federal records.

No further work by OIG would add clarity to the events surrounding the missing footage or effect any additional change at the Department. End Update

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So, we got a copy of the Office of Legal Adviser’s (OLA) report on that video editing controversy. Lots more words, but the result mirrors the preliminary report announced back in June  — we don’t know who was responsible for it and we still don’t know why the video was purposely edited. To recap:

  • On May 9,2016, Fox News reporter James Rosen informed the Department that footage was missing from the Department’s daily press briefing video from December 2, 2013. The footage concerned Iran.
  • The Bureau of Public Affairs (PA) looked into the matter and confirmed that approximately nine minutes of footage were missing from the versions of the briefing video posted on YouTube and on state.gov.
  • On May 11, a technician in PA’s Office of Digital Engagement reported a recollection of making an edit to a video of that daily press briefing in response to a request over the phone from elsewhere in Public Affairs. The technician could not, however, remember who made the request.
  • The preliminary inquiry concluded that no rules had been broken in posting the edited video. Moreover, the DVIDS video and the full written transcript was always publicly available.
  • At the request of Secretary Kerry, the Department subsequently conducted “a broader review of the matter.”

According to OLA’s report, the Department interviewed 34 individuals and conducted email searches in this “broader review” as follows:

  • Nine of these individuals were senior officials in relevant positions from the relevant time period, including the then Department Spokesperson and Deputy Spokesperson, and numerous others within the Public Affairs bureau (no names are included in the report)
  • Fifteen of the interviewees were in positions in which they might have known who requested an edit or might have been in a position to relay a request for an edit from someone with the perceived authority  (names are not included in the report)
  • The final 10 individuals (including the technician who recalled making the edit) were involved in or familiar with the video production and editing processes in the Department as of December 2013, and might have been involved with the particular video in question or could explain those processes in greater detail. Individuals in this category also provided available records from programs and tools involved in the video production process. (names are not included in the report)

The report also says that the Department does not have records of phone calls made to the video technician that day. It looks like the  Department did meet with the staff from the Office of Inspector General (OIG) twice “during the course of the factfinding to brief them on process and findings.”

The report emphasized that the full record transcript and full video (via DOD’s DVIDS) were always available.  It concludes that there was evidence of purposeful editing and that there was evidence that the video was missing the footage in question soon after the briefing (we already know this from the briefings in June). So the details are as follows:

  • A PA technician recalled having received a request to edit the video over the phone
  • A female caller from elsewhere in Public Affairs “who could credibly assert that an edit should be made” made the request
  • The PA technician did not recall the identity of the caller (and the Department has been unable to ascertain it independently through interviews or document review).
  • The PA technician did not believe the call had come from the Spokesperson
  • The PA technician did not recall a reason being given for the edit request, but did believe that the requester had mentioned in the course of the call a Fox network reporter and Iran
  • The PA technician indicated that the requester may also have provided the start and end times for an edit, though the technician also recalls consulting the written transcript to locate the exchange
  • The PA technician recalled seeking approval from a supervisor, when interviewed the supervisor did not recall that exchange or anything else about the video.
  • The PA technician also recalled adding a white flash in order to make clear that footage had been removed
  • The PA technician does not usually engage in any editing, and is usually not involved in the daily press briefing video processing until several steps into the process of preparing the video for web distribution.

OLA’s report concludes that “Despite 34 interviews and follow-ups, email reviews, and cross-checks of those records still available from the editing and processing of the press briefmg video in question, the Department’s factfinding has not revealed who may have requested an edit or why the request may have been made.”

So maybe what — 45 days from that preliminary report, and we’re back to the same conclusion.

No one knows who was responsible for it. No one knows why.

The report states that “If an effort was made-however clumsy and ineffective-to scrub the public record of an already-public exchange with the press, no documentary evidence or memory of such an effort remains. If such an effort was undertaken, it was not comprehensive (in light of the unedited transcript and DVIDS video) and it was undertaken through a technician who would not normally be involved in the video editing process.”

At the same time, the report refused to let go of its alternative culprit —  “a glitch in the December 2,2013, briefing video may have resulted in the corruption of nine minutes from the YouTube and state.gov versions of the press briefing videos. The glitch was identified late in the day and the video technician was asked to address it since the normal editing team was gone for the day. Because the technician was not a normal editor, and in an effort to be transparent about the missing footage, the technician added a white flash to the video.”

In a message to colleagues, official spokesperson John Kirby — who was not working at State when this video was purposely doctored but now had to clean up the mess — writes that the report “presents the facts as we have been able to determine them, and we are committed to learn from them.”

OK. But that alternative culprit in the report is laughable, folks. A specific phone call was made, and it looks like a specific timeframe in the video was targeted for editing. The technician was not asked to “address” the glitch, she was asked to perform a snip!

This all started because Fox’s James Rosen asked then spox, Toria Nuland on Feb. 6, 2013 if the Obama administration was in direct nuclear talks with Iran.

QUESTION: One final question on this subject: There have been reports that intermittently, and outside of the formal P-5+1 mechanisms the Obama Administration, or members of it, have conducted direct, secret, bilateral talks with Iran. Is that true or false?

MS. NULAND: We have made clear, as the Vice President did at Munich, that in the context of the larger P-5+1 framework, we would be prepared to talk to Iran bilaterally. But with regard to the kind of thing that you’re talking about on a government-to-government level, no.

On December 2, 2013, Rosen asked then new official spox, Jen Psaki about that prior exchange with Toria Nuland:

QUESTION: Do you stand by the accuracy of what Ms. Nuland told me, that there had been no government-to-government contacts, no secret direct bilateral talks with Iran as of the date of that briefing, February 6th? Do you stand by the accuracy of that?

MS. PSAKI: James, I have no new information for you today on the timing of when there were any discussions with any Iranian officials.
[…]
QUESTION:
 Is it the policy of the State Department, where the preservation or the secrecy of secret negotiations is concerned, to lie in order to achieve that goal?

MS. PSAKI: James, I think there are times where diplomacy needs privacy in order to progress. This is a good example of that. Obviously, we have made clear and laid out a number of details in recent weeks about discussions and about a bilateral channel that fed into the P5+1 negotiations, and we’ve answered questions on it, we’ve confirmed details. We’re happy to continue to do that, but clearly, this was an important component leading up to the agreement that was reached a week ago.

QUESTION: Since you, standing at that podium last week, did confirm that there were such talks, at least as far back as March of this year, I don’t see what would prohibit you from addressing directly this question: Were there secret direct bilateral talks between the United States and Iranian officials in 2011?

MS. PSAKI: I don’t have anything more for you today. We’ve long had ways to speak with the Iranians through a range of channels, some of which you talked – you mentioned, but I don’t have any other specifics for you today.

In July 2012, Jake Sullivan, a close aide to Secretary Clinton, traveled to Muscat, Oman, for the first meeting with the Iranians, taking a message from the White House. […] In March 2013, a full three months before the elections that elevated Hassan Rouhani to the office of president, Sullivan and Burns finalized their proposal for an interim agreement, which became the basis for the J.C.P.O.A. (see The Aspiring Novelist Who Became Obama’s Foreign-Policy Guru, May 5, 2016).

Would a “no comment” response really be so terrible instead of Ms. Psaki’s word cloud there?

 

Related posts:

 

 

 

FSO Dante Paradiso: The Killing of Unarmed Black Men Is Hurting America’s Image Abroad

Posted: 2:42 am ET

Via The Daily Beast by Dante Paradiso, a career Foreign Service Officer, a lawyer, and the great-grandson of a New York City police officer (with standard disclaimer).  Mr. Paradiso is also the author of the book, The Embassy: A Story of War and Diplomacy that will go on sale on October 3, 2016.

… I get that in matters of criminal justice there are larger social justice issues at play, structural inequities of the past still ingrained in the our layered local, state and federal systems that leave us with difficult race, gender and class divides. But life is the cardinal value and change must start there.

For these very reasons, the annual State Department Country Reports on Human Rights, mandated by Congress, highlight “Arbitrary or Unlawful Deprivation of Life” at the very top. Having contributed to many of these reports, in many different countries, I have spent many days in previous assignments listening to the protestations of host country officials. They have told me that their government cannot be held responsible for every bad cop, that the cases are misrepresented, that we are talking about a fraction of the police force and that the actions of a few do not fairly represent the whole picture. As a trained lawyer, I know well that any case can be distinguished on its facts and that nearly every death outside a judicial process can be explained away. Yet as a diplomat, I have told those officials that legal parsing won’t cut it.

So when I see that in a Cleveland park a child with a plastic gun is shot moments after police pull up, or that in the streets of Chicago a 17-year-old is hit with nearly one bullet for every year he lived, or that in Baton Rouge a man is tackled, pinned down by two cops and shot in the chest, after all the shock and the sadness, I inevitably think about how any of these extrajudicial killings would have been described in our Human Rights Report, and the kind of conversations I would have had, if they had occurred in some country other than my own.

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USAID Reconstruction Contracts in Afghanistan and Iraq Bites Former Louis Berger Executives

Posted: 4:05 am ET

 

In May 2015,  the former president, chief executive officer, and chairman of the board of USAID contractor Louis Berger Group Inc. (LBG) was  sentenced to 12 months of home confinement and fined $4.5 million for conspiring to defraud the U.S. Agency for International Development (USAID) with respect to billions of dollars in contracts over a nearly 20-year period.  See Conspired to Defraud Uncle Sam? Be Very Afraid. We’re Gonna Put You in Home Confinement! Last week, USDOJ announced that it has filed a lawsuit under the False Claims Act against the former LBG CEO Derish M. Wolff  and former CFO Salvatore J. Pepe “for conspiring to overbill the U.S. Agency for International Development (USAID) and other government agencies for costs incurred performing reconstruction contracts in Afghanistan, Iraq, and other countries.”

Via USDOJ: United States Sues Former Executives of Government Contractor for Making False Claims in Connection with Reconstruction Contracts in Afghanistan and Iraq

The Justice Department announced today that the government has filed suit under the False Claims Act against Derish M. Wolff and Salvatore J. Pepe, respectively the former CEO and CFO of Louis Berger Group Inc. (LBG), for conspiring to overbill the U.S. Agency for International Development (USAID) and other government agencies for costs incurred performing reconstruction contracts in Afghanistan, Iraq, and other countries, the Justice Department announced today.  LBG is based in East Orange, New Jersey.

“Those who do business with the U.S. government should expect appropriate consequences if they do not deal fairly,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “As this case demonstrates, the government will hold both corporate entities and individuals accountable if they misuse taxpayer funds.”

The government’s complaint alleges that Wolff and Pepe designed and directed various accounting schemes that resulted in LBG billing the government for indirect overhead costs at inflated rates.  According to the complaint, for example, Wolff and Pepe shifted portions of salaries of LBG executives and accounting personnel from contracts paid for by foreign and state governments and private entities to contracts paid for by the United States.  Wolff and Pepe allegedly certified the false rates and submitted them to the government in annual financial reports.

The United States resolved criminal and civil claims against LBG arising from this conduct on Nov. 5, 2010.  At that time, LBG entered into a Deferred Prosecution Agreement and paid $50.6 million to resolve False Claims Act allegations.  Pepe pleaded guilty on that date to a charge of conspiracy to defraud the government and was later sentenced to one year probation.  Wolff pleaded guilty to the same charge on Dec. 12, 2014, and was later sentencedto 12 months of home confinement and required to pay a $4.5 million fine for his role in the scheme.  The complaint filed today asserts civil claims against Wolff and Pepe.

The United States filed its complaint in a lawsuit originally brought under the qui tam, or whistleblower, provisions of the False Claims Act, by Harold Salomon, an LBG accountant from March 2002 to October 2005.  Under the Act, a private citizen can sue on behalf of the United States and share in any recovery.  The United States is also entitled to intervene in the lawsuit, as it has done in this case.

This matter is being handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Maryland, with investigative support from the FBI, USAID’s Office of Inspector General, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.

“I applaud the dedication of USAID-OIG special agents, along with special agents of the FBI and the Defense Criminal Investigative Service,” said USAID Inspector General Ann Calvaresi Barr.  “Their joint investigative work has helped the Justice Department take action against those responsible and signals our continuing commitment to protecting public funds from fraud, waste, and abuse.”

The case is United States ex rel. Harold Salomon v. Derish M. Wolff & Salvatore J. Pepe, Civ. No. RWT-06-1970 (D. Md.).  The claims asserted against Wolff and Pepe are allegations only to the extent not admitted in their criminal pleas, and there has been no determination of civil liability.

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Trump’s Wild Talk About America’s NATO Treaty Obligations — Not/Not a Misquote

Posted: 12:19 pm ET

 

SANGER: But I guess the question is, If we can’t, do you think that your presidency, let’s assume for a moment that they contribute what they are contributing today, or what they have contributed historically, your presidency would be one of pulling back and saying, “You know, we’re not going to invest in these alliances with NATO, we are not going to invest as much as we have in Asia since the end of the Korean War because we can’t afford it and it’s really not in our interest to do so.”

TRUMP: If we cannot be properly reimbursed for the tremendous cost of our military protecting other countries, and in many cases the countries I’m talking about are extremely rich. Then if we cannot make a deal, which I believe we will be able to, and which I would prefer being able to, but if we cannot make a deal, I would like you to say, I would prefer being able to, some people, the one thing they took out of your last story, you know, some people, the fools and the haters, they said, “Oh, Trump doesn’t want to protect you.” I would prefer that we be able to continue, but if we are not going to be reasonably reimbursed for the tremendous cost of protecting these massive nations with tremendous wealth — you have the tape going on?

SANGER: We do.

HABERMAN: We both do.

TRUMP: With massive wealth. Massive wealth. We’re talking about countries that are doing very well. Then yes, I would be absolutely prepared to tell those countries, “Congratulations, you will be defending yourself.”

[…]

SANGER: I was just in the Baltic States. They are very concerned obviously about this new Russian activism, they are seeing submarines off their coasts, they are seeing airplanes they haven’t seen since the Cold War coming, bombers doing test runs. If Russia came over the border into Estonia or Latvia, Lithuania, places that Americans don’t think about all that often, would you come to their immediate military aid?

TRUMP: I don’t want to tell you what I’d do because I don’t want Putin to know what I’d do. I have a serious chance of becoming president and I’m not like Obama, that every time they send some troops into Iraq or anyplace else, he has a news conference to announce it.

SANGER: They are NATO members, and we are treaty-obligated ——

TRUMP: We have many NATO members that aren’t paying their bills.

[…]

TRUMP: I’m a fan of the Kurds, you understand.

SANGER: But Erdogan is not. Tell us how you would deal with that?

TRUMP: Well, it would be ideal if we could get them all together. And that would be a possibility. But I’m a big fan of the Kurdish forces. At the same time, I think we have a potentially — we could have a potentially very successful relationship with Turkey. And it would be really wonderful if we could put them somehow both together.

SANGER: And what’s your diplomatic plan for doing that?

TRUMP: Meetings. If I ever have the opportunity to do it, meaning if I win, we will have meetings, we will have meetings very early on.

There’s mooooore, oh, dear.

Meanwhile — in Russia, Trump is apparently “inspiring a new generation of optimism.”

Here’s the NATO reaction:

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