Posts

FBI Director Mueller Boasts of FBI’s Cyber Expertise before Anonymous Hacks Cyber Call

/13 Comments/in , /by

As you may have heard, Anonymous hacked into and released a conference call between the FBI and Scotland Yard discussing their efforts to crack down on the hackers’ group.

What makes the hack all the more ironic is its release comes just days after Robert Mueller bragged of the FBI’s cyber expertise at the Threat Assessment hearing on Tuesday (the actual call took place on January 17, which makes me wonder whether they have gotten subsequent calls as well). In response to MD (and therefore NSA’s) Senator Barbara Mikulski’s suggestion that the NSA was the only entity able to investigate cybercrime, Mueller insisted (after 2:01) the FBI can match the expertise of NSA. He even bragged about how important partnering with counterparts in other countries–like Scotland Yard–was to the FBI’s expertise.

Mueller: If I may interject, we have built up a substantial bit of expertise in this arena over a period of time, not only domestically but internationally. We have agents that are positioned overseas to work closely with–embedded with–our counterparts in a number of countries, and so we have, over a period of time, built up an expertise. That is not to say that NSA doesn’t have a substantial bit of expertise also, understanding where it’s located.

Mikulski: But it’s a different kind.

Mueller: Well, no, much of it is the same kind, much of it is the same kind, in terms of power, I think NSA has more power, in the sense of capabilities, but in terms of expertise, I would not sell ourselves short.

I don’t want to sell the FBI short or anything. But regardless of their expertise in investigating cybercrimes, it sure seems like they’ve got the same crappy security the rest of the Federal government has.

Robert Mueller Reveals Counterterrorism Intelligence Techniques Being Used to Combat Healthcare Fraud

/11 Comments/in /by

We’ve long known that many of the techniques used to combat terrorism derived from the drug war. We’ve known that law enforcement agencies around the country are adopting counterterrorism techniques–and even PATRIOT Act tools–in regular law enforcement.

Robert Mueller just explained that the FBI is taking lessons learned in its counterterrorism intelligence techniques to combat healthcare fraud.

The comment was in response to a question from Amy Klobuchar. She noted that MN has pretty good success at cracking down on healthcare fraud, but inquired about “hot spots” in healthcare fraud.

Mueller responded by lauding the lessons FBI has learned in counterterrorism, then said [these are my notes–I’ll check his exact quote later], “building an intelligence infrastructure across the country allows us to see where … they’re going to go to next,” implying that they were using intelligence techniques to figure out where new healthcare fraud networks were going to pop up next.

Now, as Josh Gerstein noted on Twitter, FBI used the kind of administrative subpoenas now used to combat terrorism before they were used for terrorism. But Mueller’s comment seemed to suggest far more: I assume, given his reference to intelligence networks, FBI is using informants and the like to infiltrate suspected healthcare fraud networks.

I’m all in favor of making sure Medicare and Medicaid money goes to healthcare. But isn’t the use of intelligence networks in the healthcare industry rather invasive?

Eric Holder, Indefinitely Detained by DOD?

/7 Comments/in , , /by

The most shocking phrase in the Senate’s Defense Authorization detainee provisions to me was not the language affirming indefinite detention. That language simply affirms and possibly narrows the status quo. Rather, it was this language purporting to strike a “balance” between military and civilian detention for alleged terrorists by offering the Secretary of Defense the option of waiving military custody for terrorist detainees.

The Secretary of Defense may, in consultation with the Secretary of State and the Director of National Intelligence, waive the requirement of paragraph (1) [mandating military custody of terrorism detainees] if the Secretary submits to Congress a certification in writing that such a waiver is in the national security interests of the United States.

The presumption of military detention is bad enough. But to codify that the Defense Secretary would not even consult with DOJ on this front was shocking. After all, there is no reason any of these people–Defense Secretary, DNI, or Secretary of State–would know about a terrorist suspect captured in the US. They certainly wouldn’t know the investigation and prosecution strategies. Yet, the language passed last Thursday would not only allow the Defense Secretary to bypass DOJ as a default, but wouldn’t even require the Defense Secretary to ask whether it’s a good idea to move a suspect into DOD custody.

It effectively makes civilian prosecutors supplicants to the military bureaucracy to be allowed to do their work. And it’s particularly troubling given all the Bush-era instances in which FBI’s experts on al Qaeda were prevented from using that expertise to question detainees so Cheney’s torturers could torture them instead.

And the language in the Senate bill is actually more restrictive than the equivalent language in the House equivalent, which simply gives the Secretary of Defense input on civilian prosecution decisions.

SEC. 1042. REQUIREMENT FOR DEPARTMENT OF JUSTICE CONSULTATION REGARDING PROSECUTION OF TERRORISTS.

(a) IN GENERAL.—Before any officer or employee of the Department of Justice institutes any prosecution of an alien in a United States district court for a terrorist offense, the Attorney General, Deputy Attorney General, or Assistant Attorney General for the Criminal Division, shall consult with the Director of National Intelligence and the Secretary of Defense about—

(1) whether the prosecution should take place in a United States district court or before a military commission under chapter 47A of title 10, United States Code; and

(2) whether the individual should be transferred into military custody for purposes of intelligence interviews.

Whereas in May, crazy House Republicans wanted to give the Secretary of Defense veto power over civilian prosecutions, on Thursday the Senate voted to take the Attorney General out of discussions over whether civilian prosecutions are better than military detention altogether.

And yet, of all the Administration complaints about these provisions–John Brennan, David Petraeus, James Clapper, Leon Panetta–Robert Mueller is the only one who spoke from DOJ [Update: National Security Division head Lisa Monaco spoke at the ABA National Security conference]. Unless I missed it, Eric Holder didn’t issue a statement. And it was only after the bill passed the Senate that some anonymous DOJ official released a comprehensive explanation of why this is such a bad idea Read more →

Robert Mueller Once Again Claims Anna Chapman a Bigger Threat to US than Lloyd Blankfein

/7 Comments/in , , /by

Robert Mueller addressed the Commonwealth Club in San Francisco today. He repeated a familiar theme: the biggest threats to the United States are terrorists (even aspirational ones), spies, and cyber attacks.

Terrorism, espionage, and cyber attacks are the FBI’s top priorities. Terrorists, spies, and hackers are always thinking of new ways to harm us.

As he tends to do when spreading this propaganda, Mueller once again focused on Anna Chapman and her band of suburban spies.

Consider the arrest last year of 10 agents of the Russian Foreign Intelligence Service. Many of you may have seen TV news stories and videos covering the techniques we used in our investigation, code-named Ghost Stories. It featured the stuff of a John Le Carré novel—dead-drops in train tunnels, brush passes at night, and clandestine meetings in cafés.

Though he did add the example of Kexue Huang, who sent information on organic pesticides and food to Germany and China, to his list of scary spies who threaten our country.

Last month, Kexue Huang, a former scientist for two of America’s largest agricultural companies, pled guilty to charges that he sent trade secrets to his native China.

While working at Dow AgriSciences and later at Cargill, Huang became a research leader in biotechnology and the development of organic pesticides. Although he had signed non-disclosure agreements, he transferred stolen trade secrets from both companies to persons in Germany and China. His criminal conduct cost Dow and Cargill millions of dollars.

Finally, Mueller added a neat new twist to his list of people who pose a big threat to this country. The hackers who hacked into the BART website after BART cops killed the unarmed Oscar Grant and later Charles Blair Hill, and after BART shut down cell service to interrupt free speech will bring anarchy!

And “hacktivist” groups are pioneering their own forms of digital anarchy. Here in the Bay Area, you witnessed their work firsthand when individuals hacked the BART website and released personal data of BART customers.

Because it’s not anarchy when cops shoot unarmed or drunk men. It’s not anarchy when transit companies unilaterally shut down your phone. It’s only anarchy when the hackers get involved.

You’ll note what’s missing, as it always is, from Mueller’s list of scary threats to the country? Not a peep about the banksters whose systematic fraud has done–and continues to do–far more financial damage than 9/11.

It’s anarchy, apparently, when bunch of kids break into a website. But it’s not anarchy when banksters rewrite property law to steal the homes of millions of Americans.

The More You Look for Terrorists, the Fewer Banksters You Have to Prosecute

/9 Comments/in , /by

This report–or rather the HuffPo piece on it–has gotten a lot of attention. It shows the government as a whole has prosecuted 57.7% fewer financial fraud crimes than they did 10 years ago, when 9/11 changed everything.

The report on our government’s growing disinterest in prosecuting banksters should be paired with this FBI report which I reported on some weeks ago (since that time, FBI has removed the link to the report). The FBI report makes it clear that the FBI, at least, has shifted its approach over the last decade from a “case driven” focus to a “threat driven” focus–meaning that it decides what it’s going to look for and then goes to find criminals committing that crime rather than finds crimes and responds to them. Depending on whether you believe this report or Director Mueller’s June reconfirmation hearing, financial fraud is either the 7th or 5th highest priority for the FBI, behind terrorism, counterintelligence, and cyberattacks.

Those priorities show. As part of its focus on terrorism, the FBI has increased surveillance capacity by 48%. And over that time, the report boasts, the FBI has written 85,500 raw intelligence reports. It has set up 10,200 SCI workstations.

All of which costs money. The FBI reports that its budget authority–which it notes is driven by the strategy–has more than doubled over the period in which it has found half as many banksters.

Most telling, though, is a stat you get by putting the two reports together. TRAC notes that FBI referred 37.6% of the fraud cases for prosecution so far this year–working out to be roughly 470 cases. But if you work out how many financial cases they say they were tracking last year (they say “more than 2,800” equates to 57% of the cases), you see they were tracking roughly 4,912 financial fraud cases. If these numbers are correct, it means fewer than 10% of the banksters and other fraudsters they’re tracking ever get charged.

In other words, it’s not that they’re not seeing the crime. They’re just not referring it for prosecution, choosing instead to look for young Muslim men to entrap.

The FBI: Now, with 48% More Domestic Surveillance … but No Banksters

/14 Comments/in , /by

The FBI produced a self-congratulatory report of the changes they’ve made since 9/11. It describes the FBI’s new intelligence focus. It boasts that it has a functional computer system (which for the FBI is an accomplishment) and 10,200 SCI work stations.

Oh, and it proclaims with joy that the FBI has had a 48% growth in surveillance
teams and capacity since 9/11. Let us rejoice in the proliferation of domestic spying!

But the most telling part of the report is the way it describes its threat-driven focus, then provides a list of prioritized threats. The report makes it clear that the FBI’s focus is driven not by what actual crimes are out there, but by what crimes it chooses to look for. And the list of its priorities puts terrorism, spying, cyber-attacks, public corruption, and civil rights ahead of white collar crime (you know–the banksters who crashed our economy?). This is similar to the priority list suggested by Robert Mueller at his reconfirmation hearing earlier this year…

  • Al Qaeda-launched attack like the Undie-bomber
  • Self-radicalized attacks like Mohamed Osman Mohamud
  • Spies like Anna Chapman
  • Cyber attacks allegedly launched by China
  • Massive corporate fraud committed by people like Lloyd Blankfein that weakens our financial system
  • Health care scams
  • Drug cartel violence
  • Public corruption

Though it appears that white collar crime has, since June, been demoted behind drug cartels and public corruption. And of course, the government has rolled out the new TCO designation, meaning that the FBI’s focus on Japan’s Yakuza technically now ranks higher than its focus on the gangsters dressed in banker’s suits who decimated our own country.

You see where this leads: to where the FBI doesn’t see–and therefore doesn’t investigate–the wholesale corruption of our economy, a crime affecting just about every American and doing far more financial damage than 9/11, because it is spending so much time finding or inventing enough terrorists to justify that being the top threat, the 18 model airplane plots it first invented, then stopped in 2010, rather than investigating banksters.

Mind you, the FBI report does boast of the big increase in penny-ante mortgage fraud arrests and convictions since 2007 (it notes that “mortgage fraud was not tracked separately in arrests and convictions until 2007”). But that’s still less than one mortgage fraud conviction for every 10,000 underwater homes and fewer fraud convictions than cybersecurity convictions. And in spite of the FBI claim that,

Since 2001, the FBI has focused on the most violent
criminals, the largest and most complex fraud schemes,
the most sophisticated and dangerous computer intrusions,
and the most corrupt public officials. [my emphasis]

It has netted precisely zero of those who propagated the complex fraud that brought down our country–not even Angelo Mozilo or anyone from Goldman Sachs, against whom they’ve got reams of evidence.

The FBI calls this emphasis on terrorism (and spies and hackers and corrupt politicians and Japanese gangsters) over white collar crime a “strategic” focus.

Sort of makes you wonder what objective this strategy is supposed to accomplish.

Once Again, US Ratchets Up Rhetoric Against Pakistan

/10 Comments/in , , /by

The pattern by now is all too familiar.  Once again, the US is ratcheting up its rhetoric against Pakistan.  Earlier instances included the “crisis” when the US killed three Pakistani soldiers and Pakistan responded by closing strategic border crossings.  This was followed by the Raymond Davis fiasco. Then came exchanges of bluster over the US unilateral action that took out Osama bin Laden.  Now, the target of US ire is the cozy relationship between the Haqqani network and Pakistan’s intelligence agency, the ISI.

Reporting for Reuters, Mark Hosenball and Susan Cornwell tell us this morning that some in the US intelligence community are now assigning a direct role for ISI in the Haqqani network attack on the US embassy in Kabul:

Some U.S. intelligence reporting alleges that Pakistan’s Inter Services Intelligence directorate (ISI) specifically directed, or urged, the Haqqani network to carry out an attack last week on the U.S. Embassy and a NATO headquarters in Kabul, according to two U.S. officials and a source familiar with recent U.S.-Pakistan official contacts.

The article informs us that the Senate Appropriations Committee has added to the pressure on Pakistan:

The Senate committee approved $1 billion in aid to support counter-insurgency operations by Pakistan’s military, but voted to make this and any economic aid conditional on Islamabad cooperating with Washington against militant groups including the Haqqanis.

A series of high-level meetings between US and Pakistani officials also has taken place over the last week to hammer home these allegations against Pakistan, despite this warning in the Reuters article:

However, U.S. officials cautioned that the information that Pakistan’s spy agency was encouraging the militants was uncorroborated.

A series of articles on the website for Pakistan’s Dawn news agency provides some perspective on the coverage of the issue in Pakistan.  One article provides a forum for Interior Minister Rehman Malik after his meeting with FBI Director Robert Mueller yesterday: Read more →

Patrick Leahy in Big Rush to Reconfirm the Guy Who Won’t Solve Leahy’s Attempted Murder

/22 Comments/in /by

By now, it should be clear that, contrary to their claims, the FBI has not solved the anthrax killings. Sure, Bruce Ivins can’t be ruled out as having been involved. But the FBI has offered no plausible explanation for the following:

  • How a small sample of anthrax from Ivins’ flask was cultured into at least two larger samples of anthrax with a number of materials added
  • How those samples were dried
  • When that happened and how long that took
  • How and why the anthrax got sent from Princeton (I consider the KKG story implausible)
  • Why Leahy and Daschle were targeted

The FBI hasn’t even offered an explanation for several of these questions (they’ve offered weak explanations for the Princeton mailing and the Leahy and Daschle targeting).  And yet, based largely on Bruce Ivins’ long hours in a lab that was not amenable to producing the anthrax used in the attack, the FBI insists he’s the culprit (his lab hours are close to being an alibi at this point).

Which is why Patrick Leahy’s push to reconfirm Robert Mueller–particularly Leahy’s citation of urgency surrounding the 9/11 anniversary (which after all means the 10 year anniversary of the unsolved anthrax attack is approaching as well)–is so odd. In comments on the Senate floor on Monday, Leahy pressured Rand Paul to release his hold on Mueller’s reconfirmation.

“There is no good reason for delay. At first it was reportedly Senator Coburn who was holding up consideration of the bill, then Senator DeMint, and now apparently it is an objection by Senator Paul of Kentucky that is preventing the Senate from proceeding. This sort of delay is inexplicable and inexcusable.”

Leahy continued, “Given the continuing threat to our Nation, especially with the tenth anniversary of the September 11, 2001, attacks approaching, and the need to provide continuity and stability on the President’s national security team, it is important that we respond to the President’s request and enact this necessary legislation swiftly. I urge the Senate to take up this critical legislation and pass it without further delay.”

We’ve gotten the people behind 9/11. We have not yet gotten the people behind a government-connected terrorist attack on its own people. And yet Leahy–one target of that attack–is unquestioningly pushing the guy who refuses to solve the case (much less allow an independent review of the FBI’s investigation into it) for two more years.

Leahy’s pressure on Paul is all the more weird considering that Leahy, with his support for PATRIOT Act improvements in the past, has basically ceded the legitimacy of a number of the questions Paul wants answered before Mueller is reconfirmed, notably those about how the PATRIOT Act is used and abused.

I don’t often think Rand Paul is smarter than Patrick Leahy, but in this case, Leahy’s rush to reconfirm Mueller without asking any questions or getting any commitments on these issues is “inexplicable and inexcusable,” not Paul’s efforts to exercise a tiny bit of oversight.

Rand Paul’s Timely Questions

/18 Comments/in , /by

Charlie Savage has a report describing how Rand Paul’s hold the reconfirmation of Robert Mueller threatens to push the process beyond the time when Mueller’s ten year appointment date.

[A] necessary first step — enacting legislation that would create a one-time shortened term and make an exception to a 10-year limit on the amount of time any person may serve as director — has been delayed by Senator Rand Paul of Kentucky, a libertarian-leaning Republican who was elected last year. He is invoking a Senate rule that allows any member to block a swift vote on a bill.

There may be significantly less time to complete the steps necessary to avoid a disruption at the F.B.I. than had been generally understood.

The widespread understanding has been that Mr. Mueller’s term will expire on Sept. 3, because he started work as F.B.I. director on Sept. 4, 2001.

But the administration legal team has decided that Mr. Mueller’s last day is likely to be Aug. 2, because President George W. Bush signed his appointment on Aug. 3, 2001. Coincidentally, Aug. 2 is also the day the government will hit a debt ceiling if Congress does not raise it.

I’ll be curious, though, whether the questions Paul has submitted to be answered before the vote might also lead to a delay, too In addition to questions about:

Circumstances implicating the Iraqis indicted in Bowling Green, KY
Investigative lapses of Zacarias Moussaoui that happened under Mueller’s predecessor
A Resource Guide: Violence Against Reproductive Health Care Providers calling boycotts “intimidation” (that might be more easily answered if the government would get over its squeamishness about calling Scott Roeder a terrorist)
A Missouri fusion center report suggesting support for Ron Paul (and Bob Barr!) might be a political risk factor for domestic terrorism

Paul also asks for the FBI to describe how many time it used each of the following tools, whether against citizens or non-citizens, and how many convictions resulted:

John Doe roving wiretaps
Section 215 orders (including its use for library records)
National Security Letters
Suspicious Activity Reports

He also asked, with respect to SARs, whether they got minimized after being investigated.

Now, Paul did not ask for this data in the most savvy fashion. For example, he did not specify on his Section 215 request that he wanted details on the secret program that uses cell phone data to collect geolocation. Nor did he ask generalized questions about minimization. Nor did he specify he wanted this data in a form which he could release publicly.

But these questions are, to a significant extent, the kind of disclosures that Democrats and Paul had been pushing to add to the PATRIOT Act.

In the past, DOJ has not exactly been forthcoming with some of this information. Even assuming they’ll answer Paul in classified form (particularly his question about SARs minimization), it’s not clear how quickly they’ll be able to produce some of this information.

All of which adds to the possibility that Paul’s request might hold up Mueller’s re-confirmation past August 2. If that happens–Tom Coburn has suggested–there are a range of surveillance authorizations that might be open to challenge because no confirmed FBI Director had approved them.

Nice to see someone wring some transparency out of this silly reconfirmation process.

 

Robert Mueller: Civil Liberties Don’t Need a “Fresh” Review

/29 Comments/in , , , /by

This exchange last Thursday between Senator Al Franken and FBI Director Robert Mueller was frustrating enough–Senator Franken’s questions were the only ones on civil liberties Mueller faced, and the Director seemed pretty miffed to be questioned on the subject in the first place.

But I’m even more troubled by the exchange now that we’ve learned about the FBI’s new investigative guidelines that allow, among other things, database searches without any record and new powers to coerce informants.

After all, Mueller’s response to Franken’s concern about NSLs boasted that they had implemented a compliance system for NSLs and “other areas” where FBI might “fall into the same habits.” (What do you suppose those other areas are? Is he addressing FISC concerns?)

But perhaps as important if not more important, we set up a compliance program to address not just [National] Security Letters, but other areas such as National Security Letters where we could fall into the same, the same pattern, or habits. And so the National Security Letters I believe we addressed appropriately at the time, and it was used as a catalyst to set up a compliance program that addresses a concern in other areas comparable to what we had found with regard to National Security Letters.

Getting rid of the records on database searches would seem to eliminate any compliance system. And Mueller knew he was planning to do so (as did, I presume, Franken) when he gave this answer.

And in response to Franken’s question about infiltration of mosques and peace groups, Mueller assured Franken that FBI complied with its own guidelines.

I’m not certain it needs a fresh, a fresh, uh, look because I’m very concerned whenever those allegations arise. I will tell you that I believe that in terms of surveillances of religious institutions we have done it appropriately and with appropriate predication under the guidelines in the applicable statutes, even though there are allegations out there to the contrary. I also believe that when we have undertaken investigations of individuals expressing their First Amendment rights, we have done so according to our internal guidelines and the applicable statutes. And so, whenever these allegations come forward, I take them exceptionally seriously, make sure our inspection division or others look into it to determine whether or not we need to change anything. And I will tell you that addressing terrorism, and the responsibility to protect against attacks, brings us to the point where we are balancing day in and day out civil liberties and the necessity for disrupting a plot that could kill Americans and it’s something that we keep in mind day in and day out.

But of course, FBI is about to change those guidelines, making it easier for the Agents to attend political meetings undercover and track innocent people. And it doesn’t much matter if FBI complies with its own guidelines if those guidelines support abusive investigations. Mueller is basically insisting that he doesn’t need to reconsider FBI’s actions because FBI complies with its own guidelines and therefore the underlying guidelines themselves don’t need any more scrutiny.

And that canard about balancing civil liberties with the necessity of disrupting a plot (there’s zero evidence of course, that the FBI’s surveillance of peace groups has any tie to a plot, save against political speech)? Not only is this not a zero sum game, but the FBI doesn’t take similar civil liberties-infringing actions to disrupt right wing plots.

When he was gently, respectfully challenged to defend his civil liberties record, Mueller instead resorted to that same old terror fear-mongering. Given the new permissive guidelines, such an attitude is even more troubling.