Tag Archives: FBI

Defending firing of FBI director, Trump derides Democratic critics

This picture shows a copy of the letter by President Trump firing Director of the FBI James Comey at the White House. REUTERS/Joshua Roberts

By Susan Heavey

WASHINGTON (Reuters) – President Donald Trump defended his firing of FBI Director James Comey on Wednesday, fighting a storm of criticism that the ouster was aimed at blunting an agency probe into his presidential campaign’s possible collusion with Russia to sway the 2016 election.

The Republican president’s abrupt move on Tuesday stunned Washington and was swiftly condemned by Democrats and by some in his own party.

In a series of posts on Twitter on Wednesday morning, Trump sought to explain his move, and lambasted his critics.

“Comey lost the confidence of almost everyone in Washington, Republican and Democrat alike. When things calm down, they will be thanking me,” he said.

The Trump administration said on Tuesday Comey’s firing was over his handling of an election-year FBI probe into then-Democratic presidential nominee Hillary Clinton’s use of a private email server during her time as secretary of state.

Though many Democrats have criticized Comey’s management of that investigation, they said they were troubled by the timing of his dismissal, given that Trump could have acted soon after taking office on Jan. 20 and that he has repeatedly criticized the FBI and congressional probes into alleged Russian involvement in the election.

Asked if Trump had fired Comey over his handling of the Russia investigation, White House spokeswoman Sarah Huckabee Sanders said no.

“Frankly, if that’s going to continue, it’s going to continue whether Jim Comey is there or not,” she told MSNBC in an interview.

Some Democrats compared the move to the “Saturday Night Massacre” of 1973, in which President Richard Nixon ordered the firing of an independent special prosecutor investigating the Watergate scandal that eventually led Nixon to resign.

Democrats amplified their calls on Wednesday for an independent investigation into Moscow’s role in the 2016 election.

‘CONSTITUTIONAL CRISIS’

“What we have now is really a looming constitutional crisis that is deadly serious,” Democratic Senator Richard Blumenthal told CNN.

In one tweet on Wednesday, Trump referred to previous Democratic criticism of Comey over the Clinton probe. “The Democrats have said some of the worst things about James Comey, including the fact that he should be fired, but now they play so sad!” he said.

The president also personally attacked Blumenthal, referring to him as “Richie,” calling his comments on the Comey firing “a joke” and alluding to a years-old controversy over the senator’s military service during the Vietnam War era.

Some Republicans have also said they were troubled by the timing of Comey’s firing, including Senator Richard Burr, the Republican chairman of the Senate Intelligence Committee. That is one of several congressional panels investigating Russian interference during the election and possible collusion by Trump campaign staff.

U.S. intelligence agencies concluded in a January report that Russian President Vladimir Putin had ordered an effort to disrupt the 2016 election that included hacking into Democratic Party emails and leaking them, with the aim of helping Trump.

Russia has repeatedly denied any such meddling and the Trump administration denies allegations of collusion with Russia.

LAVROV VISIT

Russian Foreign Minister Sergei Lavrov is visiting Washington this week for high-level meetings, including one with Trump at the White House later on Wednesday in what will be the highest-level contact between Trump and the Russian government since he became president.

The two were scheduled to meet at 10:30 a.m. ET (1430 GMT), the White House said.

Asked by reporters at the U.S. State Department before a meeting with Secretary of State Rex Tillerson if Comey’s firing would cast a shadow over the talks, Lavrov responded in a sarcastic tone: “Was he fired? You’re kidding. You’re kidding.”

The Kremlin said it hoped Comey’s firing would not affect Moscow’s ties with Washington, saying it believed his dismissal had nothing to do with Russia.

Legal experts said Trump’s dismissal of Comey does not mean the FBI’s Russia investigation will be disrupted or end, since career FBI staffers can continue the probe even as the search for a new director begins.

CNN reported on Tuesday night that federal prosecutors had issued grand jury subpoenas to former Trump national security adviser Michael Flynn, seeking business records, as part of the probe into Russian interference in the election.

Comey’s deputy, Andrew McCabe, took over as acting FBI director while the White House searches for a new permanent director.

“James Comey will be replaced by someone who will do a far better job, bringing back the spirit and prestige of the FBI,” Trump tweeted.

(Reporting by Susan Heavey, David Alexander, Arshad Mohammed; Writing by Will Dunham and Susan Heavey; Editing by Frances Kerry)

Dollar slips, yen gains, after Trump fires FBI chief

Dollar banknotes are seen in this picture illustration taken April 28, 2017. REUTERS/Dado Ruvic/Illustration

By Jemima Kelly

LONDON (Reuters) – The dollar fell and the perceived safe-haven yen gained on Wednesday, after U.S. President Donald Trump abruptly fired FBI Director James Comey in a move that shocked Washington and dampened some of this week’s strong risk appetite.

Rekindled fears that North Korea could be gearing up for another weapons test also underpinned the yen, which had sunk to an eight-week low the previous day as investors’ appetite for riskier currencies increased on the back of a weekend French election result that eased euro break-up fears.

The dollar, which had strengthened to as much as 114.325 yen on Tuesday <JPY=>, slipped back to 113.87 yen.

Trump said he had sacked FBI Director James Comey – who had been leading an investigation into the Trump 2016 presidential campaign’s possible collusion with Russia to influence the election outcome – over his handling of an email scandal involving presidential nominee Hillary Clinton.

But the move ignited a political firestorm, raising suspicions among Democrats and others that the White House was trying to blunt the FBI probe involving Russia.

The dollar slipped 0.2 percent against a broad index <.DXY>.

“There’s not much risk sentiment – that’s to some extent the main driver today, mainly with respect to geopolitical questions,” said Credit Agricole currency strategist Valentin Marinov in London.

Comments from European Central Bank President Mario Draghi failed to have any clear impact on the euro, which was flat at $1.0878 <EUR=>. Draghi said it was too early for the ECB to declare victory in its quest to boost euro zone inflation.

“Draghi is repeating the same message that he made at the last ECB press conference – there are no big surprises. He’s defending the ECB’s dovish policy stance,” said Marinov.

The euro had risen to a six-month high above $1.10 on Monday, after Emmanuel Macron defeated the anti-EU Marine Le Pen in France’s presidential run-off, as worries over European political risk faded and focus returned to central bank policy.

The Swiss franc, another safe-haven currency, fell to its lowest in seven months on Tuesday and stayed close to that at 1.09575 francs per euro, flat on the day <EURCHF=>.

Commerzbank currency strategist Esther Reichelt, in Frankfurt, though, said risk appetite could only drive the currency market so far before new drivers were needed.

“Dollar strength could materialize more, given the more benevolent risk environment, but that can only move the market for so long – you always need new impetus,” she said.

U.S. political uncertainty has tended to weigh on the dollar in recent months, on the view that a divided Congress could derail Trump’s promised tax reform and stimulus programme.

(Reporting by Jemima Kelly, editing by Larry King)

FBI warns of surge in wire-transfer fraud via spoofed emails

A computer keyboard is seen in this picture illustration taken in Bordeaux, Southwestern France, August 22, 2016. REUTERS/Regis Duvignau

By Alastair Sharp

(Reuters) – Attempts at cyber wire fraud globally, via emails purporting to be from trusted business associates, surged in the last seven months of 2016, the U.S. Federal Bureau of Investigation said in a warning to businesses.

Fraudsters sought to steal $5.3 billion through schemes known as business email compromise from October 2013 through December, the FBI said in a report released Thursday by its Internet Crime Complaint Center.(http://bit.ly/2qAEVBE)

The figure is up sharply from the FBI’s previous report which said thieves attempted to steal $3.1 billion from October 2013 through May 2016, according to a survey of cases from law enforcement agencies around the world.

The number of business-email compromise cases, in which cyber criminals request wire transfers in emails that look like they are from senior corporate executives or business suppliers who regularly request payments, almost doubled from May to December of last year, rising to 40,203 from 22,143, the FBI said.

The survey does not track how much money was actually lost to criminals.

Robert Holmes, who studies business email compromise for security firm Proofpoint Inc <PFPT.O>, estimated the incidents collated by the FBI represent just 20 percent of the total, and that total actual losses could be as much as double the figures reported by the FBI.

The losses are growing as scammers become more sophisticated, delving deeper into corporate finance departments to find susceptible targets, he said.

“This is not a volume play; it’s a carefully researched play,” he said.

The United States is by far the biggest target market, though fraudsters have started to expand in other developed countries, including Australia, Britain, France and Germany, Holmes said.

The FBI has said that about one in four U.S. victims respond by wiring money to fraudsters. In some of those cases, authorities have been able to identify the crimes in time to help victims recover the funds from banks before the criminals pulled them out of the system.

The U.S. Department of Justice said in March that it had charged a Lithuanian man with orchestrating a fraudulent email scheme that had tricked agents and employees of two U.S.-based internet companies into wiring more than $100 million to overseas bank accounts.

Fraudsters have also used spoofed emails to trick corporate workers into releasing sensitive data, including wage and tax reports, according to the advisory.

(Reporting by Alastair Sharp in Toronto; Editing by Bernadette Baum and Lisa Shumaker)

Three killed in Fresno, California, shooting spree, suspect arrested

A road is blocked by police tape after a multiple victim shooting incident in downtown Fresno, California, U.S. April 18, 2017. Fresno County Sheriff/Handout via REUTERS

By Dan Whitcomb

(Reuters) – A gunman with an apparent dislike of white people and government killed three people in downtown Fresno, California, on Tuesday, before he was taken into custody while shouting “Allahu Akhbar,” police said.

The suspect, identified as 39-year-old Kori Ali Muhammad, was also wanted in connection with the fatal shooting last week of an unarmed security guard at a Motel 6 in Fresno, Police Chief Jerry Dyer told reporters at a press conference.

Dyer said Muhammad fired at least 16 rounds in less than a minute at four downtown Fresno locations at about 10:45 a.m. local time before he was spotted running through the streets by a police officer.

“Immediately upon the individual seeing the officer he literally dove onto the ground and was taken into custody and as he was taken into custody he yelled out ‘Allahu Akhbar,'” Dyer said. The term means “God is great” in Arabic.

“He does not like white people,” Dyer said, citing the black suspect’s statements after being arrested and his Facebook postings. At least two of his victims were white.

Dyer said his department had contacted the Federal Bureau of Investigation over the incident.

The Fresno Bee newspaper reported that the gunman opened fire with a large-caliber handgun while cursing shortly before 11 a.m. near a Catholic Charities building.

Fresno is an agricultural hub in California’s central valley, about 170 miles southeast of San Francisco.

County government buildings were placed on lockdown and residents were urged to shelter in place, according to the newspaper.

Local television images showed what appeared to be a body covered in a yellow tarp in a street near where police tape marked off several crime scenes.

(Reporting by Dan Whitcomb and Steve Gorman; Editing by Richard Chang)

Two Florida men plead guilty to planning to help Islamic State

FORT LAUDERDALE, Fla. (Reuters) – Two Florida men have pleaded guilty to conspiring to provide material support to Islamic State by planning to travel to Syria to join the militant group, the U.S. Justice Department said on Tuesday.

Both men are U.S. citizens and live in Palm Beach County.

Dayne Antani Christian, 32, and Darren Arness Jackson, 51, each pleaded guilty to charges of conspiracy to provide material support to Islamic State. Jackson made his plea on Tuesday and Christian pleaded last week, each to U.S. District Judge Robin Rosenberg.

Each man faces a maximum of 20 years in prison if convicted on the conspiracy charges. Christian also pleaded guilty of being a felon in possession of a firearm, and faces up to 10 yeas in prison if convicted for that charge.

The two men, along with co-defendant Gregory Hubbard, 53, were arrested by the FBI, after Jackson last July drove Hubbard and an FBI confidential informant to Miami International Airport for a flight to Germany.

Court records show that prosecutors claim that Hubbard bought a ticket for Berlin and planned to travel by train to Turkey and then cross into Syria to join Islamic State.

A July 2016 indictment returned by a grand jury charged all three men with conspiring and attempting to provide material support to a designated foreign terrorist organization.

That indictment says that at least as far back as July 2015 and continuing until their arrests, Christian and Jackson told Hubbard and the FBI confidential informant about supporting Islamic State and of a desire to travel to Syria for that purpose, the Justice Department’s press statement issued on Tuesday shows.

The same indictment says Christian and Jackson provided firearms and training in a remote area of Palm Beach County so that Hubbard and the FBI source could learn to shoot.

All three have been detained since their arrests. Hubbard is scheduled for trial on Oct. 30.

Forces backed by the United States, Turkey and Russia are advancing on Islamic State’s Syrian stronghold of Raqqa. Iraqi government forces also retook several Iraqi cities last year and the eastern part of the city of Mosul.

(Reporting by Bernie Woodall; Editing by Scott Malone and James Dalgleish)

Bangladesh Bank heist was ‘state-sponsored’: U.S. official

Lamont Siller, the legal attache at the U.S. embassy in the Philippines speaks during a cyber security forum in Manila, Philippines March 29, 2017. REUTERS/Karen Lema

MANILA (Reuters) – The heist of $81 million from the Bangladesh central bank’s account at the New York Federal Reserve last year was “state-sponsored,” an FBI officer in the Philippines, who has been involved in the investigations, said on Wednesday.

Lamont Siller, the legal attache at the U.S. embassy, did not elaborate but his comments in a speech in Manila are a strong signal that authorities in the United States are close to naming who carried out one of the world’s biggest cyber heists.

Last week, officials in Washington, speaking on condition of anonymity, blamed North Korea.

“We all know the Bangladesh Bank heist, this is just one example of a state-sponsored attack that was done on the banking sector,” Siller told a cyber security forum.

An official briefed on the probe told Reuters in Washington last week that the FBI believes North Korea was responsible for the heist. The official did not give details.

The Wall Street Journal reported U.S. prosecutors were building potential cases that would accuse North Korea of directing the heist, and would charge alleged Chinese middlemen.

The FBI has been leading an international investigation into the February 2016 heist, in which hackers breached Bangladesh Bank’s systems and used the SWIFT messaging network to order the transfer of nearly $1 billion from its account at the New York Fed.

The U.S. central bank rejected most of the requests but filled some of them, resulting in $81 million being transferred to bank accounts in the Philippines. The money was quickly withdrawn and later disappeared in the huge casino industry in the country.

There have been no arrests in the case.

A Chinese casino owner in the Philippines told that Senate inquiry he took millions of dollars from two Chinese high-rollers in February. He said the two men were responsible for transferring the stolen money from Dhaka to Manila.

Philippine investigators have filed criminal charges against several individuals and a remittance company for money laundering in connection with the heist at the country’s Department of Justice (DOJ).

None of these cases have yet been filed in court, however.

Siller said the FBI was working closely with the Philippines government “to ensure those responsible for the attack do not go unpunished.”

“So for us in the FBI, it is never over. We are going to bring these individuals to justice so that we can show others, that you maybe be able to muster such attacks, even state-sponsored, but you will not get away with it in the end.”

(Reporting by Karen Lema; Editing by Raju Gopalakrishnan)

U.S. may accuse North Korea in Bangladesh cyber heist: WSJ

Federal Reserve and New York City Police officers stand guard in front of the New York Federal Reserve Building in New York, October 17, 2012. REUTERS/Keith Bedford/File Photo

NEW YORK (Reuters) – U.S. prosecutors are building potential cases that would accuse North Korea of directing the theft of $81 million from Bangladesh Bank’s account at the Federal Reserve Bank of New York last year, and that would charge alleged Chinese middlemen, the Wall Street Journal reported on Wednesday.

The U.S. Federal Bureau of Investigation believes that North Korea is responsible for the heist, an official briefed on the probe told Reuters. Richard Ledgett, deputy director of the U.S. National Security Agency, publicly suggested on Tuesday that North Korea may be linked to the incident, while private firms have long pointed the finger at the reclusive state.

The Journal, citing people familiar with the matter, reported that prosecutors believe Chinese middlemen helped North Korea orchestrate the theft from Bangladesh’s central bank, which was among the biggest bank robberies in modern times.

The current cases being pursued may not include charges against North Korean officials, but would likely implicate the country, the newspaper reported, with the United States accusing a foreign government of orchestrating the heist.

A U.S. Department of Justice spokesman declined to comment.

FBI offices in Los Angeles and New York have been leading an international investigation into the February 2016 incident, in which hackers breached Bangladesh Bank’s systems and used the SWIFT messaging network to request nearly $1 billion from its account at the New York Fed.

The branch of the U.S. central bank rejected most of the requests but filled some of them, resulting in $81 million disappearing into casinos and other entities in the Philippines. A top police investigator in Dhaka told Reuters in December that some Bangladesh Bank officials deliberately exposed its computer systems, enabling the hackers to get in.

The incident exposed bungling and miscommunication between central banks, and left the Fed, Bangladesh, SWIFT, and the Philippine lender that initially received the funds trading blame for months.

SWIFT – or the Society for Worldwide Interbank Financial Telecommunication that serves as the backbone of global finance – has since revealed that its messaging system has been targeted in a “meaningful” number of other attacks last year using a similar approach as in the Bangladesh incident.

Last week, SWIFT said it planned to cut off the remaining North Korean banks still connected to its system as concerns about the country’s nuclear program and missile tests grow.

The Journal reported that federal investigators are focusing on Chinese individuals or businesses who allegedly helped North Korea orchestrate the heist, and that the U.S. Treasury is considering sanctions against these alleged middlemen.

The New York Fed and SWIFT declined to comment.

(Reporting by Jonathan Spicer and Joseph Menn; Editing by Jonathan Oatis and James Dalgleish)

Investigators say threats to Jewish groups in U.S. and UK are linked

An American flag still stands next to one of over 170 toppled Jewish headstones at Chesed Shel Emeth Cemetery in University City, Missouri. REUTERS/Tom Gannam

By Mark Hosenball

WASHINGTON (Reuters) – Scotland Yard and the Federal Bureau of Investigation are investigating more than a hundred bomb threats made to Jewish groups in the United States and Britain since Jan. 7, U.S. and UK law enforcement and Jewish community officials said.

Investigators said there is evidence that some of the U.S. and British bomb threats are linked. According to people in both countries who have listened to recordings of the threats, most of the them have been made over the telephone by men and women with American accents whose voices are distorted by electronic scramblers.

Waves of threats against U.S. Jewish groups – including community centers, schools, and offices of national organizations such as the Anti-Defamation League (ADL) civil rights group – have been followed within hours by similar but smaller waves against Jewish organizations, mainly schools, in Britain, Jewish community representatives in both countries said.

FBI officials in Washington confirmed that the agency is investigating the threats against U.S. Jewish organizations. Sources in Britain’s Jewish community said London’s Metropolitan Police, otherwise known as Scotland Yard, is conducting its own investigation and collaborating with the FBI.

Scotland Yard did not immediately respond to an email requesting comment.

Some of the most recent threats were called in Tuesday to ADL offices in Atlanta, Boston, New York, and Washington. White House spokesman Sean Spicer said President Donald Trump’s administration would “continue to condemn them and look at ways to stop them.”

NO BOMBS FOUND

The threats, 140 of them in the United States alone, according to Jewish community leaders, usually have involved callers claiming that improvised explosive devices have been placed outside the buildings that have been threatened.

However, no homemade bombs have been found outside any of the threatened premises in either the United States or the UK, community officials said.

Earlier this month, all 100 U.S. senators signed a letter to Homeland Security Secretary John Kelly, Attorney General Jeff Sessions and FBI Director James Comey expressing concern that the wave of threats will put innocent people at risk and threaten the finances of Jewish institutions.

Federal prosecutors in Manhattan filed charges against Juan Thompson, a former writer for the investigative website The Intercept, earlier this month alleging that he was responsible for at least eight threats emailed to Jewish community centers as “part of a sustained campaign to harass and intimidate” a woman with whom he had a romantic relationship.

The Intercept, a news website, had fired Thompson months earlier for allegedly fabricating quotes.

Jewish community officials in the United States and Britain said they think the threats that investigators linked to Thompson were not related to the larger campaign against Jewish organizations in their countries.

(Reporting By Mark Hosenball; Editing by John Walcott and Jonathan Oatis)

Jewish centers report bomb threats across United States

By Brendan O’Brien

MILWAUKEE (Reuters) – Several Jewish community centers (JCC) across the United States were evacuated for a time on Monday after receiving bomb threats, the latest wave of threatened attacks against them this year, the national umbrella organization said.

Some 11 centers including those in the Houston, Chicago and Milwaukee areas received phoned-in bomb threats that were later determined to be hoaxes, said David Posner, a director at JCC Association of North America who advises centers on security.

No arrests were made and no one was injured. All of the centers returned to normal operations, Posner said in a statement.

The FBI was investigating the incidents, Posner said.

Officials at the FBI were not immediately available for comment.

Officials at the Harry and Rose Samson Family Jewish Community Center in Whitefish Bay, Wisconsin, north of Milwaukee, received a bomb threat at 10:15 a.m. local time, the second such incident at the center over the last three weeks, it said on Twitter.

“Taking very cautious measures, we are sheltering in our gym, as has been recommended,” the Milwaukee JCC said in a text message sent to parents of children who attend the preschool at the center, according to an NBC affiliate in Milwaukee.

The center reopened two hours later, the center said on Twitter.

Monday’s incidents come after three waves of bomb threats in 2017. In all, 69 incidents at 54 JCCs in 27 states and one Canadian province have been reported, according to the JCC Association of North America.

“We are concerned about the anti-Semitism behind these threats, and the repetition of threats intended to interfere with day-to-day life,” Posner said.

Jewish community centers typically offer after-school activities, fitness programs and various other services.

Over the weekend, the headstones at the graves of about 170 Jews were vandalized in the St. Louis area, the Washington Post reported.

(Reporting by Brendan O’Brien in Milwaukee; Editing by Robert Birsel)

U.S. makes limited exceptions to sanctions on Russian spy agency

cars drive past headquarters

By Joel Schectman and Dustin Volz

WASHINGTON (Reuters) – The U.S. Treasury Department on Thursday adjusted sanctions on Russian intelligence agency FSB, making limited exceptions to the measures put in place by former President Barack Obama over accusations Moscow tried to influence the 2016 U.S. presidential election with cyber attacks on political organizations.

The department said in a statement it would allow U.S. companies to make limited transactions with FSB that are needed to gain approval to import information technology products into Russia.

At the White House, President Donald Trump responded to a reporter’s question about whether he was easing sanctions on Russia, saying, “I’m not easing anything.”

Sanctions experts and former Obama administration officials stressed the exceptions to the sanctions imposed in December do not signal a broader shift in Russia policy.

In a conference call with reporters, a senior Treasury Department official said the exceptions were “a very technical fix” made in response to “direct complaints” from companies that were unable to import many consumer technology products without a permit from the FSB. The action had been in the making for weeks before Trump took office on Jan. 20, the official said.

Beyond its intelligence function, the FSB also regulates the importation of software and hardware that contains cryptography. Companies need FSB approval even to import broadly available commercial products such as cell phones and printers if they contain encryption.

Peter Harrell, a sanctions expert and former senior U.S. State Department official, said Treasury officials likely had not considered the issue in December.

“I don’t think when they sanctioned FSB they were intending to complicate the sale of cell phones and tablets,” Harrell said.

David Mortlock, a former National Security Council advisor for Obama said that before granting such exceptions, the administration would ask who a sanction was hurting and who it was benefiting.

Mortlock, now an attorney, said “here it’s a pretty easy calculus” because it was clear tech companies were the ones harmed by not being able to import software into Russia, not the spy agencies.

U.S. intelligence agencies accused the FSB of involvement in hacking of Democratic Party organizations during the election to discredit Democrat Hillary Clinton and help Republican Trump.

The agencies and private cyber security experts concluded the FSB first broke into the Democratic National Committee’s computer system in the summer of 2015 and began monitoring email and chat conversations.

They said FSB was one of two Russian spy agencies involved in a broad operation approved by top-ranking people in the Russian government. In December, Obama expelled 35 suspected Russian spies and sanctioned two spy agencies. He also sanctioned four Russian intelligence officers and three companies that he said provided support to the cyber operations.

(Reporting by Joel Schectman and Dustin Volz; additional reporting by Yeganeh Torbati and Jason Lange; Editing by Alistair Bell and Grant McCool)