Featured Timeline Entries

July 6, 2007 – Jeffrey Epstein’s plea deal touts his close friendship with Bill Clinton and a claim he helped conceive the Clinton Global Initiative program

Bill Clinton and Jeffrey Epstein (Credit: public domain)

“Attorneys for convicted sex offender Jeffrey Epstein touted his close friendship with Bill Clinton and even claimed the billionaire helped start Clinton’s controversial family foundation in a 2007 letter aimed at boosting his image during plea negotiations, FoxNews.com has learned.

The 23-page letter, written by high-powered lawyers Alan Dershowitz and Gerald Lefcourt, was apparently part of an ultimately successful bid to negotiate a plea deal before Epstein could be tried for using underage girls in a sex ring based in Palm Beach, Fla., and his private island estate on the 72-acre Virgin Islands home dubbed “Orgy Island.” Epstein spent 13 months in prison and home detention after agreeing to a plea deal in which he admitted to soliciting an underage girl for prostitution.

“Mr. Epstein was part of the original group that conceived the Clinton Global Initiative, which is described as a project ‘bringing together a community of global leaders to devise and implement innovative solutions to some of the world’s most pressing challenges,” read the July 2007 letter to the U.S. Attorney’s office in the Southern District of Florida. “Focuses of this initiative include poverty, climate change, global health, and religious and ethnic conflicts.”

The hedge fund magnate’s true role in creating the foundation could not be confirmed. Whether Epstein was an actual founder of the foundation or exaggerated his role in a phony effort to appear altruistic is not clear.

Epstein is not cited in official paperwork filed by the Clinton Global Initiative as a founder or director. Neither The Clinton Foundation nor Dershowitz responded to FoxNews.com’s inquiry as to the extent of Epstein’s involvement. FoxNews.com first reported that flight logs show the former president flew on Epstein’s private plane dozens of times. But Clinton has publicly credited longtime assistant Doug Band, now counselor and director of the foundation, as conceiving of the idea.” (Read more: Fox News, 7/06/2016)

December 29, 2009 – Obama issues an Executive Order making it clear, all communications with a foreign government are automatically deemed classified information

(…) “In the first year of his administration (December 29, 2009, to be exact), President Obama issued Executive Order 13526, entitled “Classified National Security Information.” It explains what information is deemed classified if its disclosure would cause “damage to the national security.” Beyond that, whether the classified information is categorized as “top secret,” “secret,” or “confidential” depends on how serious the damage would be.

With that as background, the order makes clear that there is one category of information that is automatically deemed classified: information from foreign governments. Section 1.1(d) of the executive order decrees: “The unauthorized disclosure of foreign government information is presumed to cause damage to the national security.”

The reason for this is plain: It is not just the often sensitive nature of diplomatic communications; it is the fact that, in order to protect our national security, the United States must rely on intelligence from foreign governments; if our government does not keep that information strictly confidential, the foreign governments will be unwilling to share it – endangering American lives. As Secretary of State, Clinton not only knew this elementary rule; it was her duty to ensure that the rule was followed throughout her department.

After an artist prints out 62,000 pages of Hillary Clinton’s emails as part of an art exhibition titled “HILLARY: The Hillary Clinton Emails” in Venice, Italy, the former Democratic presidential nominee shows up and spends an hour reading them. She even poses for a picture that she posted on Twitter and jokes that someone should “alert the House GOP.” (Credit: Reuters)

As has been clear from the beginning, and is now patent after the latest disclosure of a subset of 6,000 of the emails Clinton deigned to preserve, at least 125 of which reportedly contain classified information, the emails Clinton sent, received and stored via her private server system were rife with information from foreign governments. This information was born classified. It makes no difference that these emails were not stamped “top secret”; all national security officials with security clearances know that foreign government information is deemed classified and must be handled as such. Period.

Indeed, since it is the State Department that deals most directly with foreign governments, the Secretary of State has the highest obligation and interest when it comes to assuring them that the information they share with the U.S. government is being handled with appropriate care.” (Read more: National Review, 9/01/2015)

October 22, 2010 – Red flags are raised in national security assessments of the Uranium One deal

(Credit: public domain)

“My sources tell me President Trump is putting the finishing touches on a White House initiative to declassify documents that have remained hidden from the public for far too long.

This welcome effort to provide more public transparency and accountability almost certainly will focus early on the failings of the now-debunked Russia collusion probe. And I’m sure it will spread quickly toward other high-profile issues, such as the government’s UFO files that have been a focus of clamoring for decades.

But my reporting indicates three sets of documents from the Obama years should be declassified immediately, too, because they will fundamentally change the public’s understanding of history and identify ways to improve governance.

The first includes the national security assessments that the U.S. intelligence community conducted under President Obama and Secretary of State Hillary Clinton concerning the Russia nuclear giant Rosatom’s effort to acquire uranium business in the United States.

The Committee on Foreign Investment in the United States (CFIUS) – made up of Secretary Clinton and eight other senior federal officials – approved Rosatom’s purchase of mining company Uranium One’s U.S. assets in fall 2010, even as the FBI was gathering evidence that the Russian company’s American arm was engaged in bribery, kickbacks and extortion.

Sources who have seen these classified assessments tell me they debunk the last administration’s storyline that there were no national security reasons to oppose Rosatom’s Uranium One purchase or Vladimir Putin’s successful efforts to secure billions of dollars in new nuclear contracts with American utilities during the Obama years.

“There were red flags raised, and the assessments expose other weaknesses in how CFIUS goes about these approval processes,” one knowledgeable source told me.

Under Obama, sensitive foreign acquisitions almost routinely were rubber-stamped by CFIUS, and the approval process sometimes was delegated by Cabinet officials on the CFIUS committee to lower-ranking aides.

Clinton, for example, claims she allowed a deputy to decide the Uranium One purchase, even as her family foundation collected millions in donations from parties interested in the transaction and her husband, former President Bill Clinton, collected a $500,000 speech fee from Moscow.

Since Trump took office and Steve Mnuchin took over as Treasury secretary, laudable legislative and administrative changes have been designed to tighten up the CFIUS process, and the percentage of rejected foreign acquisitions has increased because of more aggressive national security vetting.

But sources say the release of the Rosatom intelligence assessments would identify additional steps that can improve the process, and finally would give Americans a complete picture of what happened during one of the most politically controversial CFIUS decisions in history.” (Read more: The Hill, 8/28/2019)

March 22, 2012 – The Obama administration announces new rules that will allow millions of U.S. citizens’ government files to be copied and analyzed for terrorism clues

(…) “Within the 99-page opinion from Judge Rosemary Collyer  she noted none of this FISA-702 database abuse was accidental. In a key footnote on page 87: Collyer outlined the years of unlawful violations was the result of “deliberate decisionmaking“:

This specific footnote, is key to peeling back the onion.

Note the phrase: “([redacted] access to FBI systems was the subject of an interagency memorandum of understanding entered into [redacted])”.  This sentence exposes an internal decision; withheld from congress and the FISA court by the Obama administration; and outlines a process for access and distribution of surveillance data. Note: “no notice of this practice was given to the FISC until 2016“.

We feel confident we’ve now found the source of the “memorandum of understanding” that lies at the heart of the issue.

Barack Obama and Eric Holder (Credit: Olivier Douliery/Getty Images)

In March 2012 the Obama administration through Attorney General Eric Holder made changes to the exploitation of intelligence databases as noted in this Wall Street Journal article later in the year:

(December 2012WSJ) Top U.S. intelligence officials gathered in the White House Situation Room in March to debate a controversial proposal. Counterterrorism officials wanted to create a government dragnet, sweeping up millions of records about U.S. citizens—even people suspected of no crime.

Not everyone was on board. “This is a sea change in the way that the government interacts with the general public,” Mary Ellen Callahan, chief privacy officer of the Department of Homeland Security, argued in the meeting, according to people familiar with the discussions.

A week later, the attorney general signed the changes into effect.

The rules now allow the little-known National Counterterrorism Center to examine the government files of U.S. citizens for possible criminal behavior, even if there is no reason to suspect them. That is a departure from past practice, which barred the agency from storing information about ordinary Americans unless a person was a terror suspect or related to an investigation.

Now, NCTC can copy entire government databases—flight records, casino-employee lists, the names of Americans hosting foreign-exchange students and many others. The agency has new authority to keep data about innocent U.S. citizens for up to five years, and to analyze it for suspicious patterns of behavior. Previously, both were prohibited. Data about Americans “reasonably believed to constitute terrorism information” may be permanently retained.

The changes also allow databases of U.S. civilian information to be given to foreign governments for analysis of their own. In effect, U.S. and foreign governments would be using the information to look for clues that people might commit future crimes.  (more)

The 2012 changes, instituted by Eric Holder, permitted files of specific Americans to be generated under the auspices of potential terror threats.  The NSA databases could be exploited by the National Counterterrorism Center to extract content that would be contained within these files on targeted Americans.

Keep in mind this is early 2012, John Brennan is Deputy National Security Advisor and Asst. to President Obama for Homeland Security.

When Attorney General Eric Holder empowered the National Counterterrorism Center with this new authority, the office assigned to the data-collection was the Terrorist Threat Integration Center (TTIC).  The founder of the TTIC was John Brennan:

On 1 May 2003, the Terrorist Threat Integration Center (TTIC) opened its doors. Led by its first Director, John Brennan, TTIC filled its ranks with approximately three dozen detailees from across the US Government (USG) and was mandated to integrate CT capabilities and missions across the government. (link)

Also note the date of this DOJ Memorandum is March 2012:

Under the new rules issued in March, the National Counterterrorism Center, known as NCTC, can obtain almost any database the government collects that it says is “reasonably believed” to contain “terrorism information.”  (link)

The March 2012 date is right before the IRS scandal hit the headlines.

The IRS targeting scandal is where the term “Secret Research Project” originated as a description from the Obama team. It involved the U.S. Department of Justice under Eric Holder and the FBI under Robert Mueller. It never made sense why Eric Holder requested over 1 million tax records via CD ROM, until overlaying the timeline of the FISA abuse:

The IRS sent the FBI “21 disks constituting a 1.1 million page database of information from 501(c)(4) tax exempt organizations, to the Federal Bureau of Investigation.” The transaction occurred in October 2010 (link)

Why disks? Why send a stack of DISKS to the DOJ and FBI when there’s a pre-existing financial crimes unit within the IRS. All of the evidence within this sketchy operation came directly to the surface in spring 2012.

Here’s how it looks:

♦ In 2010 Eric Holder asked the IRS to send him the records of 501(c) non profit groups and individuals representing conservative voters. [LINK] Lois Lerner sent the DOJ 1.1 million pages of 501(c)(4) tax filing data. Including a very specific set of “33 Schedule B attachment files”. The Schedule B’s were specific to Large Conservative 501(c)(4) groups operating and organized to oppose the agenda of President Obama. The Schedule B’s include the donor lists of specific people and sub-groups attached to the 501(c)(4).

The IRS sent the FBI “21 disks constituting a 1.1 million page database of information from 501(c)(4) tax exempt organizations, to the Federal Bureau of Investigation.” The transaction occurred in October 2010 (link)

♦ In 2012 Eric Holder authorizes the use of government databases to search records of Americans and assemble “files” on potential targets. [Link] “The agency has new authority to keep data about innocent U.S. citizens for up to five years, and to analyze it for suspicious patterns of behavior.”

♦ In the period of 2012 through April 2016According to FISA Judge Rosemary Collyer, there were tens of thousands of illegal (“non-compliant”) search queries of the NSA database targeting Americans.  The search results were unlawfully “extracted” to unknown entities.  Eighty-five out of every hundred searches were illegal (85% non-compliant rate).

Consider purposeful actions, as a political targeting operation, by weaponizing the systems of government.  Steps:

  • First, identify the targets (IRS Database).
  • Second, research the targets (NSA Database).
  • Third assemble files on the targets (DOJ Authorization).
  • Fourth use the files to leverage/destroy your opposition.

We now have evidence of the first three steps; and my hunch is if we apply hindsight a lot of unusual activity will now make sense.  We have been living inside the fourth step for a few years.  We noticed the consequences… but we only had suspicions, until now.” (Read more: Conservative Treehouse, 5/28/2019)

***

On December 12, 2012, the Wall Street Journal publishes a timeline of events regarding the National Counterterrorism Center controversy:

Dec. 25, 2009 – On Christmas Day, Umar Farouk Abdulmutallab, a 23-year-old Nigerian man, boarded a flight to Detroit from Amsterdam wearing explosives sewn into his undergarments. His bomb didn’t properly detonate. He eventually pleaded guilty to terror-related charges.

Jan. 7, 2010 – The White House issued a report about the attempted bombing, citing the need to strengthen the watchlisting process.

May 18, 2010 – The Senate Select Committee on Intelligence report on the Christmas Day bombing concluded that “NCTC was not organized adequately to fulfill its mission.”

Feb 24, 2011 – In February 2011, Homeland Security staffers began corresponding about their concerns about the proposed NCTC guidelines, including issues with “oversight/compliance” and difficulty stripping down “what you need to focus on as the problems.”

March 4, 2011 – By March, Justice Department was on its “third round of edits” with NCTC. DHS Associate General Counsel Matthew L. Kronisch encouraged Homeland Security colleagues to submit their comments soon.

March 7, 2011 – In a heated exchange, an official at the Office of the Director of National Intelligence – whose name was redacted – said that several Homeland Security comments “suggest a potential lack of understanding” and “would eviscerate the authorities” of the counterterrorism center.

March 11, 2011 – Homeland Security Associate General Counsel Matthew Kronisch expressed “little expectation of resolving our concerns” but requested a meeting with the Office of Director of National Intelligence and the Department of Justice.

May 12, 2011 – Homeland Security Chief Privacy Officer Mary Ellen Callahan and Officer for Civil Rights and Civil Liberties Margo Schlanger elevated their concerns to DHS Secretary Janet Napolitano in a memo titled “How Best to Express the Department’s Privacy and Civil Liberties-Related Concems over Draft Guidelines Proposed by the Office of The Director of National Intelligence and the National Counterterrorism Center.”

June 17, 2011 – Ms. Callahan expressed frustration with the process, stating that she “non-concurred” on “operational examples,” and that the examples were “complete non-sequiturs” and “non-responsive.”

November 8, 2011 – “I’m not sure I’m totally prepared with the firestorm we’re about to create,” Margo Schlanger wrote in an e-mail to Mary Ellen Callahan in November, referring to the fact that the two wanted to push for further privacy protections in the guidelines. Others in the department were willing to agree to the counterterrorism proposal.

March 7, 2012 – Staffers for the Homeland Security Privacy and Civil Rights and Civil Liberties offices’ prepared talking points for the “Deputies Committee meeting” at the White House to discuss the guidelines.

March 22, 2012 – But right after the meeting the guidelines were finalized and quietly released with a statement from the Director of National Intelligence James Clapper who cited the Abdullmutallub failures. “Following the failed terrorist attack in December 2009, representatives of the counterterrorism community concluded it is vital for NCTC to be provided with a variety of datasets from various agencies that contain terrorism information,” said Clapper, “The ability to search against these datasets for up to five years on a continuing basis as these updated Guidelines permit will enable NCTC to accomplish its mission more practically and effectively than the 2008 Guidelines allowed.”

April 2, 2012 – Homeland Security staffers began preparing the terms under which they would hand over the “six DHS datasets associated with the revised NCTC AG Guidelines.”

(Wall Street Journal, 12/12/2012)

September 12, 2012 – Defense, State Dept documents reveal Obama administration knew that al Qaeda terrorists planned Benghazi attack 10 days in advance

Clinton with Libyan rebels upon her departure from Tripoli in Libya on October 18, 2011. (Credit: Reuters)

“Judicial Watch announced today that it obtained more than 100 pages of previously classified “Secret” documents from the Department of Defense (DOD)and the Department of State revealing that DOD almost immediately reported that the attack on the U.S. Consulate in Benghazi was committed by the al Qaeda and Muslim Brotherhood-linked “Brigades of the Captive Omar Abdul Rahman” (BCOAR), and had been planned at least 10 days in advance. Rahman is known as the Blind Sheikh, and is serving life in prison for his involvement in the 1993 World Trade Center bombing and other terrorist acts.  The new documents also provide the first official confirmation that shows the U.S. government was aware of arms shipments from Benghazi to Syria.  The documents also include an August 2012 analysis warning of the rise of ISIS and the predicted failure of the Obama policy of regime change in Syria.

The documents were released in response to a court order in accordance with a May 15, 2014, Freedom of Information Act (FOIA) lawsuit filed against both the DOD and State Department seeking communications between the two agencies and congressional leaders “on matters related to the activities of any agency or department of the U.S. government at the Special Mission Compound and/or classified annex in Benghazi” (Judicial Watch v U.S. Department of Defense and U.S. Department of State(No. 1:14-cv-00812)).

Spelling and punctuation are duplicated in this release without corrections.

Defense Department document from the Defense Intelligence Agency (DIA), dated September 12, 2012, the day after the Benghazi attack, details that the attack on the compound had been carefully planned by the BOCAR terrorist group “to kill as many Americans as possible.”  The document was sent to then-Secretary of State Hillary Clinton, then-Defense Secretary Leon Panetta, the Joint Chiefs of Staff and the Obama White House National Security Council.  The heavily redacted Defense Department “information report” says that the attack on the Benghazi facility “was planned and executed by The Brigades of the Captive Omar Abdul Rahman (BCOAR).”  The group subscribes to “AQ ideologies:”

The attack was planned ten or more days prior on approximately 01 September 2012. The intention was to attack the consulate and to kill as many Americans as possible to seek revenge for U.S. killing of Aboyahiye ((ALALIBY)) in Pakistan and in memorial of the 11 September 2001 atacks on the World Trade Center buildings.

“A violent radical,” the DIA report says, is “the leader of BCOAR is Abdul Baset ((AZUZ)), AZUZ was sent by ((ZAWARI)) to set up Al Qaeda (AQ) bases in Libya.”  The group’s headquarters was set up with the approval of a “member of the Muslim brother hood movement…where they have large caches of weapons.  Some of these caches are disguised by feeding troughs for livestock.  They have SA-7 and SA-23/4 MANPADS…they train almost every day focusing on religious lessons and scriptures including three lessons a day of jihadist ideology.”

The Defense Department reported the group maintained written documents, in “a small rectangular room, approximately 12 meters by 6 meters…that contain information on all of the AQ activity in Libya.”

(Azuz is again blamed for the Benghazi attack in an October 2012 DIA document.)

The DOD documents also contain the first official documentation that the Obama administration knew that weapons were being shipped from the Port of Benghazi to rebel troops in Syria. An October 2012 report confirms:

Weapons from the former Libya military stockpiles were shipped from the port of Benghazi, Libya to the Port of Banias and the Port of Borj Islam, Syria. The weapons shipped during late-August 2012 were Sniper rifles, RPG’s, and 125 mm and 155mm howitzers missiles.

During the immediate aftermath of, and following the uncertainty caused by, the downfall of the ((Qaddafi)) regime in October 2011 and up until early September of 2012, weapons from the former Libya military stockpiles located in Benghazi, Libya were shipped from the port of Benghazi, Libya to the ports of Banias and the Port of Borj Islam, Syria. The Syrian ports were chosen due to the small amount of cargo traffic transiting these two ports. The ships used to transport the weapons were medium-sized and able to hold 10 or less shipping containers of cargo.

The DIA document further details:

The weapons shipped from Syria during late-August 2012 were Sniper rifles, RPG’s and 125mm and 155mm howitzers missiles.  The numbers for each weapon were estimated to be: 500 Sniper rifles, 100 RPG launchers with 300 total rounds, and approximately 400 howitzers missiles [200 ea – 125mm and 200ea – 155 mm.]

The heavily redacted document does not disclose who was shipping the weapons.

Another DIA report, written in August 2012 (the same time period the U.S. was monitoring weapons flows from Libya to Syria), said that the opposition in Syria was driven by al Qaeda and other extremist Muslim groups: “the Salafist, the Muslim Brotherhood, and AQI are the major forces driving the insurgency in Syria.” The growing sectarian direction of the war was predicted to have dire consequences for Iraq, which included the “grave danger” of the rise of ISIS:

The deterioration of the situation has dire consequences on the Iraqi situation and are as follows:

This creates the ideal atmosphere for AQI [al Qaeda Iraq] to return to its old pockets in Mosul and Ramadi, and will provide a renewed momentum under the presumption of unifying the jihad among Sunni Iraq and Syria, and the rest of the Sunnis in the Arab world against what it considers one enemy, the dissenters. ISI could also declare an Islamic state through its union with other terrorist organizations in Iraq and Syria, which will create grave danger in regards to unifying Iraq and the protection of its territory.

Some of the “dire consequences” are blacked out but the DIA presciently warned one such consequence would be the “renewing facilitation of terrorist elements from all over the Arab world entering into Iraqi Arena.”

From a separate lawsuit, the State Department produced a document created the morning after the Benghazi attack by Hillary Clinton’s offices, and the Operations Center in the Office of the Executive Secretariat that was sent widely through the agency, including to Joseph McManus (then-Hillary Clinton’s executive assistant).  At 6:00 am, a few hours after the attack, the top office of the State Department sent a “spot report” on the “Attack on U.S. Diplomatic Mission in Benghazi” that makes no mention of videos or demonstrations:

Four COM personnel were killed and three were wounded in an attack by dozens of fighters on the U.S. Diplomatic Mission in Benghazi beginning approximately 1550 Eastern Time….

The State Department has yet to turn over any documents from the secret email accounts of Hillary Clinton and other top State Department officials.

“These documents are jaw-dropping. No wonder we had to file more FOIA lawsuits and wait over two years for them.  If the American people had known the truth – that Barack Obama, Hillary Clinton and other top administration officials knew that the Benghazi attack was an al-Qaeda terrorist attack from the get-go – and yet lied and covered this fact up – Mitt Romney might very well be president. And why would the Obama administration continue to support the Muslim Brotherhood even after it knew it was tied to the Benghazi terrorist attack and to al Qaeda? These documents also point to a connection between the collapse in Libya and the ISIS war – and confirm that the U.S. knew remarkable details about the transfer of arms from Benghazi to Syrian jihadists,” stated Tom Fitton, Judicial Watch president.  “These documents show that the Benghazi cover-up has continued for years and is only unraveling through our independent lawsuits. The Benghazi scandal just got a whole lot worse for Barack Obama and Hillary Clinton.” (Judicial Watch, 5/18/2015)

September 29, 2012 – Judicial Watch obtains an email that proves Clinton and Jake Sullivan immediately knew the Benghazi attack was not a spontaneous response to an internet video

Clinton testifies before the Senate Foreign Relations Committee re the September 11, 2012 attack in Benghazi, Libya, on January 23, 2013. (Credit Saul Loeb/Agence France Presse/Getty Images)

“Judicial Watch made public on Oct. 21, a 2012 email chain showing multiple senior U.S. State Department executives used then-Secretary of State Hillary Clinton’s unsecured private email to discuss the most sensitive details of the Sept. 11, 2012, terrorist attack on the U.S. Consulate in Benghazi, Libya.

Four Americans, including Ambassador Christopher Stevens, died in the assault, which within hours was attributed by the Obama White House to an internet video that critically portrayed Islam and its founder, Mohammed.

(…) The first email in the long chain, dated Sept. 29, 2012, was from Jacob Sullivan, Clinton’s then-senior adviser and deputy chief of staff, to Clinton and copied to Mills.

The email was also forwarded to Philippe Reines, who was Clinton’s then-deputy assistant secretary of state for communications. The occasion for Sullivan’s email was Clinton’s need for Benghazi information to use in a forthcoming telephone call to an unidentified U.S. senator.

After first apologizing for a briefing that apparently angered Clinton, Sullivan then said “the White House and [then-White House national security adviser] Susan [Rice] were not making things up. They were going with what they were told by the IC [intelligence community].

The real story may have been obvious to you from the start (and indeed I called it an assault by heavily armed militants in my first statement), but the IC gave us very different information. They were unanimous about it.”

Sullivan’s comment that “the real story may have been obvious to you from the start” indicates Clinton suppressed her initial view that the attack had been planned beforehand and instead, for several days afterward, she publicly attributed it to “spontaneous” protests sparked by the internet video.” (Read more: The Epoch Times, 10/21/2019)  (Archive)

April 30, 2014 – March 15, 2016: The Kolomoisky pyramid starts with Hillary Clinton and Victoria Nuland at the State Department and Christine Lagarde of the IMF

(Credit: John Helmer)

“When Igor Kolomoisky (lead image, centre) financed anti-Russian units operating with the Ukrainian Army in the Ukrainian civil war, he was a staunch ally of Petro Poroshenko’s government in Kiev and the Obama Administration’s chief Ukraine policymakers, Secretary of State Hillary Clinton (left) and her Assistant Secretary for European Affairs, Victoria Nuland (right).

They in turn dominated the voting on the board of directors of the International Monetary Fund (IMF), led by managing director Christine Lagarde. Following the US regime change which installed Poroshenko’s regime in the spring of 2014, the IMF voted massive loans for the Ukraine to replace the Russian financing on which the regime of Victor Yanukovich had depended.  More than a third of the fresh IMF money was paid out by the National Bank of Ukraine (NBU), the state’s central bank, into PrivatBank controlled by Kolomoisky and his partner, Gennady Bogolyubov.

At the time, investigations of Kolomoisky’s business and banking practices, and the special relationship he cultivated with the NBU, reported he was stealing the money through a pyramid of front companies lending each other the IMF cash which was not intended to be repaid. Clinton, Nuland, Lagarde and the IMF staff and board of directors ignored the evidence, as they continued to top up Kolomoisky’s pyramid. Criminal investigations by the US Department of Justice and the Federal Bureau of Investigation (FBI) were also reported at the time; they were neutralized by their superiors.

A new Delaware state court filing a month ago, triggering new US media reports, appears to signal a shift in US Government policy towards Kolomoisky. Or else, as some Ukrainian policy experts believe, it is a move by US officials to put pressure on the new Ukrainian President, Volodymyr Zelensky, whom Kolomoisky supported in his successful election campaign to replace Poroshenko.

In the new court papers, front company names and the count and value of US transactions between them,  which PrivatBank has dug out of its own bank records,  is published for the first time. But the scheme itself is not new. It was fully exposed in 2014-2015 in this archive.  Nor is it news, as subsequent US media reports claim, that the FBI is investigating Kolomoisky and his US associates for criminal racketeering. The FBI investigation was first reported here.

(Credit: Steve Bell, August 28, 2014)

What is missing is an explanation of why it has taken so long for the PrivatBank case against Kolomoisky to surface in the US courts and in the US press. Also missing is a list of the accomplices and co-conspirators in the scheme. These include officials of the IMF,  the US and Canadian Governments who knowingly directed billions of dollars into the NBU,  from which, as they knew full well at the time, the money went out to Kolomoisky’s PrivatBank, the largest single Ukrainian recipient of the international cash. At the top of the list of accomplices, immediately subordinate to Clinton, Nuland and Lagarde, are David Lipton, the US deputy managing director  at the IMF, and the head of the IMF in Ukraine until 2017, Jerome Vacher.

The plaintiff in the Delaware Court of Chancery is PrivatBank; it is represented by the Quinn Emanuel law firm of New York and Washington, DC.

In addition to Kolomoisky and Gennady Bogolyubov, his business partner and co-shareholder in the bank, three other individuals are named as defendants – Mordechai Korf, Chaim Schochet, and Uriel Laber. They are based in the US where they have run the US trading, production, management and investment companies which Privat now alleges were on the receiving end of the embezzlement from the bank and the onward money-laundering chain.

The story of Kolomoisky, Korf and Schochet was first reported in April 2015 here.

Left to right: Mordechai Korf; Chaim Schochet, Korf’s brother-in-law; and Uriel Laber.  Because Korf, Schochet and Laber all live in Miami, the local newspaper has investigated some of their other schemes; here’s an investigation of the environmental damage of their manganese mine in Georgia. A catch-up investigation was reported by the Kyiv Post in May 2019.

The central allegation of the new court case is: “From at least 2006 through December 2016, the UBOs  [Ultimate Beneficial Owners – Kolomoisky, Bogolyubov] were the majority and controlling stockholders of PrivatBank, one of Ukraine’s largest privately-held commercial banks. During that time period, the UBOs used PrivatBank as their own personal piggy bank—ultimately stealing billions of dollars from PrivatBank and using United States entities to launder hundreds of millions of dollars’ worth of PrivatBank’s misappropriated loan proceeds into the United States to enrich themselves and their co-conspirators.”

Gennady Bogolyubov (l) and Igor Kolomoisky (Credit: public domain)

The racket – called the Optima schemes in the court papers after the names of several of the Delaware-registered companies used as fronts for moving the money into US assets – was this: “Through the Optima Schemes, the UBOs [Kolomoisky and Bogolyubov] exploited their positions of power and trust at PrivatBank to cause PrivatBank to issue hundreds of millions of dollars’ worth of illegitimate, inadequately-secured loans to corporate entities also owned and/or controlled by the UBOs and/or their affiliates (the “Optima Scheme Loans”). To facilitate and fraudulently conceal the Optima Schemes from discovery, the UBOs created and utilized a secretive business unit within PrivatBank’s operations (the “Shadow Bank”) to fund the fraudulent loans and launder those loan proceeds through a sophisticated money laundering process.”

“The stated purpose for each loan involved in the Optima Schemes was typically for financing the activities of the ostensible corporate borrower. The Optima Scheme Loans, however, were sham arrangements and the proceeds were not in fact used for that purpose. Instead, sometimes within minutes of being disbursed, the loan proceeds were cycled through dozens of UBO-controlled or affiliated bank accounts at PrivatBank’s Cyprus branch (“PrivatBank Cyprus”) before being disbursed to one of multiple Delaware limited liability companies or corporations (or other United States-based entities), all of which were [controlled by the UBOs].”

“In effect, the UBOs utilized a Ponzi-type scheme: old loans issued by PrivatBank would be ‘repaid’ (along with the accrued interest) with new loans issued by PrivatBank, and those new loans issued by PrivatBank would then be repaid with a new round of loans. The UBOs and their co-conspirators continuously carried out this process to conceal their frauds. Thus, proceeds from new PrivatBank loans were used to give the appearance that the initial PrivatBank loans (along with the accrued interest) were repaid by the borrower when in fact there was no actual repayment.”

“The proceeds from the new PrivatBank Ukraine loans were then laundered through various accounts at PrivatBank Cyprus to disguise the origin of the funds (i.e., a new loan from PrivatBank), and then used to purport to pay down the initial loans plus accrued interest. On paper, this appeared to be a repayment, but in reality, it was a sham and fraud, as PrivatBank was repaying itself and increasing its outstanding liabilities in the process. This process was carried out over and over again, over a period of many years, giving the appearance that PrivatBank’s corporate loan book was performing when, in fact, new loans were being continually issued to new UBO-controlled parties to ‘pay down’ the prior, existing loans. As a result, the size of the ‘hole’ in PrivatBank’s corporate loan book grew and grew, with each iteration of a loan plus interest being ‘repaid’ through the issuance of a new loan, which accrued interest itself before being ‘repaid’ through the issuance of yet a further new loan.

(…) Most of the fresh evidence presented in Privatbank’s court papers has been gathered from Cyprus. There, according to the bank’s case, 41 front companies were used to move money. “Even though the Laundering Entities had billions of dollars moving in and out of their accounts, in reality, the entities had no business, assets, operations, or employees and were shell entities deployed for money laundering purposes.”

When the money was moved to the US,  it was then spent on real estate – four commercial buildings in Cleveland, Ohio;  two in Dallas, Texas;  one in Harvard, Illinois – together with six ferro-alloy and steel production and trading companies operating in several US states.  The court papers report the value of the real estate at acquisition at just over $287.5 million; the value of the metals companies, $468.7 million.

In addition, there were miscellaneous financial transfers with no clear end-purpose or investment target. “Based on information analyzed to date, Defendants laundered approximately $622.8 million worth of fraudulently obtained loan proceeds into the Optima Conspirators, including $188.1 million to Optima Group, $162.3 million to Optima Ventures, $153.7 million to Optima Acquisitions, $103 million to Optima International, $9 million to Warren Steel Holdings, and $6.7 million to Felman Trading. PrivatBank received no consideration in exchange for these transfers and the loans associated with the transfers were not repaid in full.”

Grand total, $1,379 million.

(…) Lawyers for the defendants are not commenting on the Delaware allegations. It can be anticipated that Kolomoisky will argue the Privatbank loans weren’t shams, and that they were repaid to the bank.  Kolomoisky has already won counter claims against PrivatBank in courts in London and Kyiv; he is now negotiating with the Kiev government to recover a 25% stake in the bank. “We have always said that we are open to negotiations. We believe that we are the injured party, that we have been robbed,” Kolomoisky has told Reuters. “Kolomoisky calculates he is due a 25 percent stake in the bank because of the capital he had put into it. Give us then our 25 percent and keep 75, we will have a joint-stock company. There will be a 25 percent participation and 75 percent by the state, as one of the options.”

Reuters also reports the Ukrainian central bank and the IMF believe Privat “was used as a vehicle for fraud and money-laundering while Kolomoisky owned it, and said the government was forced to inject $5.6 billion of taxpayers’ money into the lender to shore up its finances.” For more detail, click to read this.

The work on the transactions detailed in the Delaware court papers was commissioned by PrivatBank and the NBU from Kroll, a due diligence firm as well known for white-washing the affairs of its clients as for investigating fraud. Kroll’s report was then leaked to Graham Stack. In his report, published on April 19, Stack concludes: “The money was moved through a PrivatBank subsidiary in Cyprus. The arrangement helped hide the fact that cash was disappearing because the National Bank of Ukraine treated the Cyprus branch of PrivatBank the same as it would domestic branches. This designation meant officials never detected that cash transferred to Cyprus was leaving Ukraine. Meanwhile, Cypriot regulators either failed to detect that the various bank transfers totalling $5.5 billion were backed by bogus contracts, or didn’t take the necessary action to stop them.”

The IMF’s staff head for Ukraine, Nikolai Gueorguiev,  claimed that in March 2015 he had ordered “a new wave of  bank diagnostics” to monitor related-party lending, liquidity and capital adequacy at PrivatBank; he was dissembling.

Graham Stack (Credit: public domain)

Stack (right) also reports Kolomoisky’s response to the Delaware case: “‘I categorically deny the allegations made by the National Bank of Ukraine,’ Kolomoisky said, adding that regulators had all the access they needed to monitor his bank’s activities. He painted the authorities’ nationalization of his lending business as an asset grab. ‘Management of the [Ukrainian central bank] had as its main purpose not the support of the country’s largest bank, but its nationalization and the expropriation of the assets provided as security, together with the persecution and pressuring of the former shareholders,’ Kolomoisky said.”

Stack is an independent researcher and reporter of Ukrainian business and politics. Anders Aslund is an employee of Victor Pinchuk, a Ukrainian oligarch with bank, media and steel interests who has long been a rival of Kolomoisky’s. Aslund, a former Swedish government official, has worked for US think-tanks funded by Pinchuk. Aslund is now at the Atlantic Council in Washington, DC. The council lists Pinchuk’s foundation as having giving it up to $500,000 in financing for research, including Aslund’s pay.  The US State Department, the British Foreign Office, and George Soros’s foundations are also listed as large donors.

[Anders] Aslund (left) reported on the charges on June 4. Aslund claims to be reading about the stealing scheme for the first time. “The money trail is surprisingly simple. To begin with, the ultimate beneficiary owners collect retail deposits in Ukraine by offering good conditions and service. The money then flows to their subsidiary, PrivatBank Cyprus. In Cyprus, they benefit from the services of two local law firms. Untypically, the ultimate beneficiary owners did not take the precaution to establish multiple layers of shell companies in Cyprus, the British Virgin Islands, and Cayman Islands, as is common among Russians with seriously dirty money. Instead, they operated with three US individuals in Miami, who helped them to set up a large number of anonymous LLCs in the United States, mainly in Delaware, but also in Florida, New Jersey, and Oregon.”

Aslund expresses surprise that among Kolomoisy’s investments there were US ferro-alloy and steel plants and traders. “More remarkable is that Kolomoisky and Bogolyubov, according to the suit, purchased several ferroalloy companies in the United States, Felman Production Inc., in West Virginia; Felman Trading Inc. and Georgian Manganese, LLC; Warren Steel Holdings in Warren, Ohio; Steel Rolling Holdings Inc., Gibraltar, Michigan; CC Metals and Alloys, LLC, in Kentucky; Michigan Seamless Tubes, Michigan. These appear to be medium-sized companies in small places. Real people worked in these enterprises. Why didn’t anybody raise questions about the dubious owners?” (Read much more: John Helmer, 6/30/2019)  (Archive)

(Republished in part, with permission)

May 14, 2014 – Glenn Greenwald describes Hillary Clinton: “Banal, corrupted, principle-free, power-hungry…”

In May 2014 during a Q & A with GQ, Glenn Greenwald is asked the following question about the upcoming 2016 election, following with his reply:

How do you feel about the early presidential jockeying?

“Hillary is banal, corrupted, drained of vibrancy and passion. I mean, she’s been around forever, the Clinton circle. She’s a fucking hawk and like a neocon, practically. She’s surrounded by all these sleazy money types who are just corrupting everything everywhere. But she’s going to be the first female president, and women in America are going to be completely invested in her candidacy. Opposition to her is going to be depicted as misogynistic, like opposition to Obama has been depicted as racist. It’s going to be this completely symbolic messaging that’s going to overshadow the fact that she’ll do nothing but continue everything in pursuit of her own power. They’ll probably have a gay person after Hillary who’s just going to do the same thing.

I hope this happens so badly, because I think it’ll be so instructive in that regard. It’ll prove the point. Americans love to mock the idea of monarchy, and yet we have our own de facto monarchy. I think what these leaks did is, they demonstrated that there really is this government that just is the kind of permanent government that doesn’t get affected by election choices and that isn’t in any way accountable to any sort of democratic transparency and just creates its own world off on its own.” (GQ, 5/14/2014)

Later, in November 2014, Greenwald writes about Hillary’s forthcoming run for the Presidency. Here are some excerpts from the Intercept:

It’s easy to strike a pose of cynicism when contemplating Hillary Clinton’s inevitable (and terribly imminent) presidential campaign. As a drearily soulless, principle-free, power-hungry veteran of DC’s game of thrones, she’s about as banal of an American politician as it gets. One of the few unique aspects to her, perhaps the only one, is how the genuinely inspiring gender milestone of her election will (following the Obama model) be exploited to obscure her primary role as guardian of the status quo.

But one shouldn’t be so jaded. There is genuine and intense excitement over the prospect of (another) Clinton presidency. Many significant American factions regard her elevation to the Oval Office as an opportunity for rejuvenation, as a stirring symbol of hope and change, as the vehicle for vital policy advances. Those increasingly inspired factions include:

Wall Street

Down on Wall Street they don’t believe (Clinton’s populist rhetoric) for a minute. While the finance industry does genuinely hate Warren, the big bankers love Clinton, and by and large they badly want her to be presidentMany of the rich and powerful in the financial industry—among them, Goldman Sachs CEO Lloyd Blankfein, Morgan Stanley CEO James Gorman, Tom Nides, a powerful vice chairman at Morgan Stanley, and the heads of JPMorganChase and Bank of America—consider Clinton a pragmatic problem-solver not prone to populist rhetoric. To them, she’s someone who gets the idea that we all benefit if Wall Street and American business thrive. What about her forays into fiery rhetoric? They dismiss it quickly as political maneuvers. None of them think she really means her populism. (Read more: The Intercept, 11/14/2014)

In October 2016, candidate Donald Trump was of the same opinion:

2015 – 2016: A former Ukrainian Security Service (SBU) employee, claims President Poroshenko and Clinton Foundation donor Victor Pinchuk, diverted IMF funds into Clinton 2016 campaign

During the US election campaign in 2016, the Ukrainian authorities led by President Petro Poroshenko (r), openly and actively support Hillary Clinton. (Credit: public domain)

(Timeline editor’s note: This is an excerpt from an article written by Vasily Prozorov who is a former employee of the Ukrainian security service SBU. All of his work can be found at ukr-leaks.org. We hope documents will eventually be released to further verify the story.)

Auto-translated in Chrome:

(…) “Manafort is only one of the participants in the drama, called “Ukraine Gate”. Another story is related to the financial support of Hillary Clinton from Ukraine. The intrigue is that during the presidential race in the United States, official Kiev helped the Democratic candidate not only politically and informationally, but also used the money stolen from the IMF tranches, to sponsor your favorite.

So, according to the information available to me, Ukraine is currently continuing investigation of criminal proceedings regarding the theft of IMF funds received by the National Bank of Ukraine (NBU).

Vasily Prozorov (Credit: public domain)

It was assumed that foreign aid would be intended to support the financial sector of Ukraine. Under this program, the NBU allocated funds to various private credit organizations of the country. Their owners transferred the received amounts to offshore companies, transferring the agreed kickbacks to the head of the NBU Valeria Gontareva and her patron Petro Poroshenko, for whom she had previously worked in the ICU investment campaign.

Such banks of Ukraine as Tavrika, Pivdenkombank, Avtokrazbank, Moscow Commercial Bank (Converse Bank), Finrostbank, Terra Bank, Kiivska Rus, Vernum Bank participated in this scheme, “Credit Dnipro”, “Delta Bank” and others. Money was transferred from the country to offshore via Austrian bank MeinlBank AG.

The largest volumes of monetary assets were received by two credit organizations – Credit Dnipro and Delta Bank. These banks are closely associated with one of the richest Ukrainian oligarchs – Victor Pinchuk, son-in-law of former President of Ukraine Leonid Kuchma. The Ukrainian billionaire maintained contacts with the former IMF representative in Ukraine, Jerome Wash, and Dominique Strauss-Kahn, the former IMF managing director, was a member of the Credit Dnipro Supervisory Board. It is hard to imagine that these distinguished gentlemen were not aware of the financial transactions of their Ukrainian friends. Therefore, it is possible that an international group was engaged in the theft of billions of foreign aid to Ukraine.

At the next stage, IMF loans went to the offshore companies MelfaGroup LTD (Belize), TandiceLimited (Cyprus), TosalanTradingLimited (Cyprus), AgaluskoInvestmentLimited (Cyprus), WintenTrading LTD (Cyprus), SilistenTradingLimited “NasternoCommercialLimited.” These offices, as it turned out, also associated with Victor Pinchuk.

But this was not the end of the financial chain. Most of the money from these foreign assets of Pinchuk went to the accounts of his main “washing machine” – The Victor Pinchuk Foundation. And already the “laundered money” was transferred to the Clinton Foundation. Since 2012, for almost five years, the family of the former US president has been listed more than 29 million dollars. Moreover, the largest tranches from the Pinchuk Foundation to the Clinton Foundation were held in 2015 and 2016. By a “coincidental” coincidence, it was at this time that Hillary fought for the post of US president.

Scheme of theft of IMF money tranches and their transfer to the Clinton fund.

Obviously, such a scheme was implemented with the direct participation of the head of the National Bank, Mrs. Gontareva, and the assistance of Prime Minister Arseniy Yatsenyuk and President of Ukraine Petro Poroshenko.” (Read more: Ukraine Leaks/Archived, 7/26/2019) (Direct link)

2015 – 2016: The IMF money withdrawal and laundering scheme, from Ukraine to the Clinton campaign

Translated:

(…) “In May 2016, according to the decision of the Kiev Pechersk Court, some Ukrainian credit organizations used shadow schemes for withdrawing funds through the correspondent accounts of the Austrian Meinl Bank AG, the damage from their actions amounted to more than $ 800 million.

(Credit: Kate Matberg/Mediapart)

Another “ingenious scheme” worked smoothly as follows. Ukrainian banks entered into custody and collateral agreements with a non-resident Austrian bank, in which all amounts of funds on correspondent accounts, accrued interest and any future receipts to these accounts were pledged to the foreign bank. The pledge was provided to ensure the fulfillment of obligations under the loan agreements that the non-resident bank, in turn, concluded with third parties – non-resident companies in Ukraine. The latter were associated with the owners of Ukrainian banking institutions. And the borrowers did not fulfill their loan obligations, for which Meinl Bank AG unilaterally extrajudicially charged (i.e., debited from the accounts of Ukrainian banks) all funds in its favor.

And now let’s take a closer look at the list of these Ukrainian banks and using their own reporting documents (by the way, already removed from the Internet, but still recorded by the author before this sad event), we will analyze some of their activities.

Former Ukraine Minister of Finance, Natalie Jaresko is named to manage Puerto Rico’s financial crisis on March 24, 2017. (Credit: public domain)

Of the 36 banks that were granted loans by the National Bank of Ukraine at the expense of IMF tranches, 11 were closed without returning borrowed funds (June 10, 2014 – March 15, 2018, Chairman of the Board Ms. Gontareva), 11 were closed without returning borrowed funds. It seems not so much in the framework of the “struggle for the purification and improvement of the financial and credit system of the state”.

However, the true scope, excuse my French, the scam becomes clear when it turns out that only eight credit institutions received up to 95% of this money. They strenuously pumped them through the already familiar Austrian Meinl Bank AG with a further withdrawal to private offshore companies in Cyprus and Belize. As a result, six of them have already left the orderly ranks of the banking system of Ukraine. And it happened somehow quietly, almost without ceremony, which suggests the national scale of such “Mummery”. Yes, and the ratio of the numbers 11 to 36, or 6 out of 11, not all the same – 6 out of 8 rather confirms our conjecture that Ms. N. Yaresko who held the post of Minister of Finance from February 12, 2014 to April 14, 2016 owned the situation.

It would not be superfluous to recall that Ms. N. Yaresko, a citizen of the United States treated by the highest presidential power, obtained the citizenship of Ukraine, so to speak, from the hands of Mr. Poroshenko for “special merit.” Was it only for merits to the state and what exactly were her merits?  Maybe in the ability to “correctly” distribute and divide financial flows, primarily taking care of the welfare of Mr. Poroshenko’s “team” and his inner circle?

Former IMF representative in Ukraine, Jerome Vacher (Credit: public domain)

Two more banks – participants of this scheme are PJSC “Credit Dnipro” and PJSC “Delta Bank” affiliated with it (declared insolvent in 2015, the bankruptcy procedure is not completed) continue to operate. Their owner is oligarch Pinchuk V.M. – son-in-law of the former President of Ukraine Kuchma L.D. Mr. Pinchuk maintained close ties with the former representative of the IMF in Ukraine, Mr. Jerome Vacher. In addition, the supervisory board of the IMF Dominique Strauss-Kahn is on the supervisory board of PJSC “Credit Dnipro”. It should also be noted that Mr. Pinchuk is the founder of the “Victor Pinchuk Foundation”, which is funded, including through some private offshore companies.

Do you think this is another final link in the chain of funds adventure allocated by the IMF? Do not hurry! Since 2012, for almost five years, only through the Pinchuk’s fund, “Clinton Foundation” received more than $ 29 million. Yes, my dear Ukrainian reader, Mr. Pinchuk, in fact, became one of the largest financial donors to the former American presidential candidate Hillary Clinton.

Simultaneously, Mr. Pinchuk did not forget Mr. Poroshenko, paying for his election campaign in the media. Mr. Dudnik A.P. was responsible for this truly significant event for one of the leading Ukrainian oligarchs – yes, exactly the head of the supervisory board of the PJSC “Credit Dnipro” bank.

And this already really looks like a “state level” of the highest standard, especially considering the “State Dept” past of Ms. N. Yaresko. Isn’t it a perfect mediator and “watchwoman” for all interested parties?!

Clinton Foundation mega-donor Victor Pinchuk, (l), Toomas Hendrik (c), President of the Republic of Estonia and Petro Poroshenko (r), President of Ukraine. (Credit: Pinchuk Fund)

So instead of financing own economy, the current Ukrainian government headed by Mr. Poroshenko in effect, created a corrupt scheme of international scope, replenished its personal reserves “for a rainy day” and pleased the “democrats” ruling in the USA at that time. However, the Ukrainian president is not very successful with the current American “partners”. Violating the laws of at least two countries, as well as all conceivable principles of democracy and decency (yes, they also exist in politics, to put it mildly, are peculiar, but still) the US Democratic Party actually received uncontrollable income at the expense of the world financial organization allocated to support economy of another state – Ukraine. A crime? Yes! And it is very similar to the “payoff”! (Read more: Kate Matberg/Mediapart, 4/15/2019)

(Timeline editor’s note: We hope documents will be released to further verify this information.)