AFIO Weekly Intelligence Notes #25-16 dated 21 June 2016

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CONTENTS

Section I - INTELLIGENCE HIGHLIGHTS

Section II - CONTEXT & PRECEDENCE

Section III - COMMENTARY

Section IV - ANNOUNCEMENTS, and DEATHS

Announcements

Deaths

Section V - Events

Upcoming AFIO Events

Other Upcoming Events

For Additional AFIO and other Events two+ months or more... Calendar of Events 

WIN CREDITS FOR THIS ISSUE: The WIN editors thank the following special contributors:  mk, fm, kc, jm, mr, jg, th and fwr. They have contributed one or more stories used in this issue.

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Now online...view full episode #1 "Trigon: The KGB Chess Game"

Declassified: Untold Stories of American Spies

The CNN TV Series appears each Sunday.
View full episode #1 here or click image above.
In Season 1, Episode 01 - "Trigon: The KGB Chess Game" - 45 minutes, we hear from CIA Operations Officer Marti Peterson, CIA Chief of CI James Olson, and KGB Maj. Gen. Oleg Kalugin discuss covert operations conducted by Marti in Moscow. Watch as Marti "goes black" - gets out of the embassy without KGB surveillance to obtain stolen, crucial information on nuclear arms and US-USSR confrontations.
Episode covers the SR100, dead drops, going black, Trigon, L-pills, concealment devices, camera pens, women case officers, and the useful outcome -- the 'take' -- from this operation.

The series provides factual accounts of America's covert operations told firsthand by the officers who lived it, and includes access to the often complicated, hidden world of covert operations and espionage.
Series is hosted by former US Congressman/former House Intelligence Committee chair and current CNN national security contributor and AFIO member Mike Rogers.
Click image above to view 45-minute episode 1.

"The Color of Courage" featuring Dr. Julian Kulski
at the Daniel Morgan Academy

Thursday, 30 June 2016, 5 - 7pm - Washington, DC

The Daniel Morgan Academy hosts an exclusive, invitation-only national security lecture featuring The Color of Courage: The World War II Diary of Julian Kulski with a presentation by Dr. Julian Kulski.
"If there is going to be a war, I do not want to miss it." So writes Julian Kulski a few days before WWII begins, in his remarkable diary of a boy at war from ages 10 to 16.
At age 12 Kulski is recruited as a soldier in the clandestine Underground Army by his Boy Scout leader, and at age 13 enters the Warsaw Ghetto on a secret mission. Arrested by the Gestapo at age 14 and sentenced to Auschwitz, he is rescued and joins the commandos. At age 15, Kulski fights in the 1944 Warsaw Uprising. He ends the war as a German POW, finally risking a dash for freedom onto an American truck instead of waiting for Soviet "liberation."
Dr. Julian Kulski will speak about his experiences fighting in the Polish Underground during World War II.
TIMES: Reception with food and wine starts at 5 pm. Presentation by Dr. Kulski is from 6 to 7 pm.
LOCATION: Daniel Morgan Academy, 1620 L St NW, 7th Floor, Washington, DC 20036; Near Farragut North and West Metro Stations
For more information or to RSVP do so here or contact Frank Fletcher, Director of Lectures and Seminars, DMA at Fletcher@DanielMorgan.academy; call 202-759-4988.
Please note: DMA events are by invitation-only and not open to the public. Contact the Academy for more information.

Section I - INTELLIGENCE HIGHLIGHTS

ISIS Threat to US Air Bases, South Korea Intelligence Agency Warns.  ISIS has collected information on 77 US and NATO air force facilities around the world and is calling on supporters to attack them, according to South Korea's intelligence agency.

The terror group has also released information on individuals in 21 countries, including the personal details of one employee of a South Korean welfare organization, the National Intelligence Service (NIS) said in a statement Sunday.

That person is now under protection, the agency said.

The NIS says ISIS' hacking organization, the United Cyber Caliphate, collected details of US air force units in South Korea including Osan Air Base, and addresses and Google satellite maps have been released through the Telegram messaging service.  [Read more:  Hancocks/CNN/20June2016]

Remain in EU, Say Former UK Security and Intelligence Chiefs.  Economists can argue forever - or neverendum, as the saying goes now. What is extraordinary is the breadth and depth of the arguments over the pros and cons of EU membership - even entering the realm of spooks.

Former security and intelligence chiefs (who make it clear they are speaking for serving officers) are warning that leaving the EU would hinder their work protecting Britain. It is as if Brexiteers, including some senior ministers, are dismissing offhand warnings from MI5 and MI6.

"I do know", said Nigel Inkster, a former director of MI6, "that the intelligence community places enormous value on exchanges" with intelligence agencies of other EU countries, notably over information on suspected terrorists or violent extremists.

In the event of Brexit, "I do know the intelligence community would be concerned", he stressed. Existing EU agreements on sharing datesets would have to be renegotiated on a bilateral basis, he said.  [Read more: Norton-Taylor/TheGuardian/20June2016]

Afghan MPs Confirm New Defence Minister, Intelligence Chief.  Afghan lawmakers today approved President Ashraf Ghani's nominees for defence minister and intelligence director, two crucial posts that sat vacant for months as the country struggles to rein in an ascendant insurgency.

The confirmations came as attacks left at least 23 people dead across Afghanistan today and wounded dozens more, as the Taliban's resurgence continues to raise serious questions about the ability of Afghan forces to hold their own without the support of US-led NATO troops.

MPs voted for Abdullah Habibi, formerly a senior official in the defence ministry who holds the rank of army general, to become its new minister.

Mohammad Masoom Stanekzai, a former top official in the government body overseeing the country's peace process who has worked to bring the Taliban to the negotiating table, was named head of Afghanistan's National Directorate of Security (NDS) intelligence agency.  [Read more:  AFP/20June2016]

Intelligence Agency Wants to Keep 'Novel Organisms' From Threatening Humans.  The same technology that helps scientists sequence genes could also help them create "novel organisms" that could be used to attack humans and the environment, according to one intelligence agency.

The Intelligence Advanced Research Projects Activity, the intelligence community's R&D arm, wants businesses to showcase technology that could prevent new biotechnology, such as DNA synthesis, from being exploited. At the end of this month, IARPA is hosting a Proposers' Day in advance of a new solicitation for its Functional Genomic and Computational Assessment of Threats, or "Fun GCAT" program.

New biological research on gene sequencing, synthesis and analysis "are likely to enable revolutionary advances in medicine, agriculture and materials," IARPA's posting says - but they also "have intensified security concerns around the accidental or deliberate misuse of biotechnologies."

The potential that researchers could synthesize "novel organisms" from genetic material is a "special concern," the posting said.  [Read more:  Ravindranath/NextGov/14June2016]

Russian Government Hackers Penetrated DNC, Stole Opposition Research on Trump.  Russian government hackers penetrated the computer network of the Democratic National Committee and gained access to the entire database of opposition research on GOP presidential candidate Donald Trump, according to committee officials and security experts who responded to the breach.

The intruders so thoroughly compromised the DNC's system that they also were able to read all email and chat traffic, said DNC officials and the security experts.

The intrusion into the DNC was one of several targeting American political organizations. The networks of presidential candidates Hillary Clinton and Donald Trump were also targeted by Russian spies, as were the computers of some Republican political action committees, US officials said. But details on those cases were not available.

"I completely rule out a possibility that the [Russian] government or the government bodies have been involved in this," Dmitry Peskov, the Kremlin's spokesman, told the Reuters news agency in Moscow.  [Read more:  Nakashima/WashingtonPost/14June2016]

European Authorities Set up Conflict-Zone Intelligence-Sharing System for Airlines.  European intelligence agencies and air-safety officials have created the first formal intelligence-sharing network to warn the region's airlines about dangers of overflying various conflict zones world-wide.

The new system seeks to coordinate and update such threat assessments under the auspices of the European Union, and then quickly disseminate the information to European carriers, according to the region's top aviation safety official.

Patrick Ky, executive director of the European Aviation Safety Agency, described the effort in an interview Thursday. He said the initiative, under discussion since late 2014, was approved days earlier by the EU's Council of Ministers.

The goal, Mr. Ky said, is to ensure his agency can provide carriers with the best possible guidance about avoiding airspace where fighting on the ground poses potential hazards for commercial aircraft.  [Read more:  Pasztor/WallStreetJournal/17June2016]

Invoking Orlando, Senate Republicans Set up Vote to Expand FBI Spying.  US Senate Majority Leader Mitch McConnell set up a vote late on Monday to expand the Federal Bureau of Investigation's authority to use a secretive surveillance order without a warrant to include email metadata and some browsing history information.

The move, made via an amendment to a criminal justice appropriations bill, is an effort by Senate Republicans to respond to last week's mass shooting in an Orlando nightclub after a series of measures to restrict guns offered by both parties failed on Monday.

"In the wake of the tragic massacre in Orlando, it is important our law enforcement have the tools they need to conduct counterterrorism investigations," Senator John McCain, an Arizona Republican and sponsor of the amendment, said in a statement.

The bill is also supported by Republican Senators John Cornyn, Jeff Sessions and Richard Burr, who chairs the Senate Intelligence Committee.  [Read more:  Volz/Reuters/20/June2016]

Section II - CONTEXT & PRECEDENCE

Confessions of a Belizean Intelligence Agent.  After more than thirty years of gathering intelligence, dating back to the 70s, a retired special branch officer, who prefers to remain unnamed, decided to break his silence in an interview with Amandala.

He reached the climax of his intelligence-gathering career during joint operations with the British, Americans and Guatemalans.

He indicated that during the time of his intelligence-gathering, Guatemala was engaged in a brutal civil war that was waged from around 1960 to 1996, between the Guatemalan government and various leftist guerrilla groups. By 1979, as the civil war in Guatemala was intensifying, Guatemalan support groups had made their way to Belize, from which they provided food, medicine and possibly arms to the rebellious guerrillas, the retired agent said.

He told our newspaper that these guerilla support groups were located in places like the Valley of Peace, Armenia, Blackman Eddy and Maskall; while the community of Billy White served as the nucleus for their operations.  [Read more:  Goodin/Amandala/18June2016]

Obama Nominates Former CIA Officer as CIA Watchdog.  President Obama has nominated Shirley Woodward, a partner of a major law firm and a former CIA intelligence officer, to fill the role of inspector general of the Central Intelligence Agency, an internal watchdog post that has been empty since early 2015. [Mrs. Woodward's husband, John, was the keynote speaker at AFIO's May 20th luncheon].

Obama announced Woodward's nomination Thursday, noting that the previous IG, David Buckley, had resigned. Buckley left the position in January of last year, according to the Project on Government Oversight, which tracks IG vacancies in presidential administrations.

Woodward most recently served as a partner in the litigation and controversy practice at Wilmer Cutler Pickering Hale and Dorr. She first joined the firm in 2001 as an associate and spent a year as associate general counsel and chief Iraq inspector for the Commission on the Intelligence Capabilities of the US Regarding Weapons of Mass Destruction.

Before joining WilmerHale, she clerked for Supreme Court Justice Sandra Day O'Connor and had previously served as an intelligence operations officer at the CIA from 1985 to 1997.  [Read more:  Crabtree/WashingtonExaminer/16June2016]

Extra Helpings of Hacked Servers? Compromised Machines Hit Low Prices on the Dark Web.  It's a great time to be a cybercriminal, with preconfigured malware tools, ransomware kits and full-fledged bots all for sale on the Dark Web.

According to SC Magazine, the market is expanding, this time with access to more than 70,000 hacked servers. For just $6 a pop, would-be cybercriminals can get their hands on infected machines from a host of companies worldwide. Is this the start of a new malicious market vertical?

Cyber marketplaces have evolved over the last few years to full-service e-commerce ventures, many of which include top-notch customer service and guarantees about the authenticity of merchandise. Now, Kaspersky Lab has run across a relatively new venture named xDedic, which seemingly started up in 2014 and gained popularity last year.

As noted by Threatpost, this Dark Web market is selling both hacked servers and tools necessary to launch serious cyberattacks. For Kaspersky researcher Juan Andres Guerrero-Saade, just finding this many servers for sale was a surprise, but it's also interesting to note that the entire operation is "meticulously" managed by a Russian-speaking cybercrime group. This organization facilitates the meetup of various cybercrime affiliates to sell whichever stolen goods are in the highest demand.   [Read more:  Bonderud/SecurityIntelligence/20June2016]


Section III - COMMENTARY

Support for Our Intelligence Community Is Needed Now More Than Ever.  Our intelligence community helps defend our homeland and keep us safe by hunting down some of the world's most dangerous people. In return, they deserve to receive the resources needed to do this difficult and oftentimes dangerous job.

That's why I'm proud that the House Intelligence Committee unanimously approved the Intelligence Authorization Act (IAA) for Fiscal Year 2017. The bill recently passed the House of Representatives overwhelmingly by a 371-35 vote, showing that a large, bipartisan majority recognizes and supports the vital efforts of our intelligence professionals. The IAA authorizes funding for the departments and agencies that comprise the intelligence community, providing crucial support for anti-terror programs that target a wide range of hostile groups like the Taliban, ISIS, al-Qaeda and others.

As shown by the jihadist attack on Orlando's Pulse nightclub, groups like ISIS and al-Qaeda are not just dangerous because they directly plan attacks, but because they also inspire lone wolf assaults through their online propaganda. These radicalized assailants are very difficult to discover. We need to ensure the Intelligence Community has the tools and authorities it needs to track these individuals and thwart their plots before they come to deadly fruition.  [Read more:  Ros-Lehtinen/Forbes/15June2016]

Enhanced Human Intelligence Is Key to Defeating Terrorists.  As the barbaric attacks in Paris, San Bernardino, Brussels, and Orlando have demonstrated, we need to enhance our capabilities to detect and thwart terrorists as they plan attacks. With the proliferation of off-the-shelf encryption technologies and other operational security measures, terrorists are becoming harder to find by traditional technical collection methods such as wiretaps and signals intelligence (SIGINT). Meeting this threat means investing in human intelligence (HUMINT) capabilities at home - not just at the federal level, but also at the state and local levels.

In an important speech nearly a decade ago, Gen. Michael Hayden, a retired four-star Air Force general and former director of both the Central Intelligence Agency and the National Security Agency, described the challenges the United States faced then and the critical importance of intelligence in winning the war on terrorism.

"We're now in an age in which our primary adversary is easy to kill, he's just very hard to find. So you can understand why so much emphasis in the last five years has been placed on intelligence. Moreover, the moment of an enemy's attack may be just that, a moment, a split second, the time it takes for an airliner to crash or a bomb to detonate. There can be little or no time to defeat him on the battlefield he's chosen."

This rings even truer today. In the age of ISIS-directed, -enabled, and -inspired attacks against our homeland, the enemy is harder to find than ever before. We have limited opportunities to detect and disrupt him.  [Read more:  Mayer/AmericanEnterpriseInstitute/16June2016]

False Flags: The Kremlin's Hidden Cyber Hand.  For two years the so-called Cyber Caliphate has been the online weapon brandished by the Islamic State against its enemies. Its hacking offensive, including aggressive use of social media, made front-page news around the world, heralding a new front in that murderous group's worldwide jihad against "infidels."

Pledging support to ISIS, the Cyber Caliphate hacked and defaced US Government websites and social media feeds, including those of Central Command, the Pentagon's Middle East headquarters. Numerous smaller cyber-attacks followed. They also hacked into Department of Defense databases and posted the personal information of 1,400 American military affiliates online.

The Cyber Caliphate has attacked targets in many countries, including allegedly accessing top secret emails belonging to senior British government officials. The most public of their attacks was the April 2015 hijacking of several feeds belonging to the French channel TV5Monde, which included defacing its website with the slogan "Je suis ISIS." This assault, seen by millions of people worldwide, gave the group the notoriety it craved.

The American-led coalition against ISIS has taken the Cyber Caliphate threat seriously, devoting significant intelligence resources to tracking and studying the group. Western fears increased this April with the announcement that disparate ISIS hackers were merging, creating a new United Cyber Caliphate, designed to be a major expansion of the existing Cyber Caliphate. Drawing together jihadist hackers from many countries, this would constitute a major online threat.  [Read more:  Schindler/TheObserver/18June2016]


Section IV - ANNOUNCEMENTS, and DEATHS

Announcements

The International Spy Museum inks deal for new location. The International Spy Museum finalized its deal with The JBG Cos. to build a new home at L'Enfant Plaza. Museum officials had previously announced plans to move to the new spot at 900 L'Enfant Plaza in Southwest DC, but there was no word on a final agreement until the two issued a news release Wednesday. The city has approved issuing $50 million in industrial revenue bonds to help finance construction of the 140,000-square-foot building. The rest of the project will be funded using the museum's equity. D.C. land records show JBG sold the air rights over the 0.48-acre parcel where the museum is to be located to the International Spy Museum for $13 million back in February. The museum was founded by Cleveland-based Malrite Co. head, Milton Maltz [who is on AFIO's Honorary Board], which later created a nonprofit entity to own the museum. JBG will serve as the nonprofit's representative during construction, meaning it will oversee construction and turn the keys over to the museum. [Read more: Cooper/WashBusJnl/15Jun2016] AFIO extends congratulations to all our friends and colleagues at the Spy Museum as they shift over to the much larger space of the beautiful glass-atrium-fronted UK-designed new building. Which means many new, larger exhibits and events are in the offing. Stay tuned for word of opening festivities.

Deaths

Ray Monroe Keeler, 85, former director of NSA's Programs and Budget, and strong manager of NSA's A Group, died 15 June 2016 in Annapolis, MD.

Ray earned a BA degree from the University of Wisconsin and studied Russian at Syracuse University. From 1951 to 1955, he served as a Staff Sergeant in the USAF during the Korean War. From 1957 to 1986 he served in a variety of senior positions with the National Security Agency, retiring in 1986 as Director of Programs and Budget. He was awarded the Distinguished Executive of the Senior Service Award by President Reagan in 1984 and the Exceptional Senior Service Award in 1986.
From 1989 to 1997, Ray was president of CRYTEC, a consulting company involved in matters relating to the intelligence community and served as the Director of the Audit Committee of Essex Corporation. He volunteered as Director and Chairman of the Finance Committee of GEBA/GEMBA Employee Service Organization, a member of the Board of Directors and Treasurer of the Heritage Harbour Health Group, Chairman of the Heritage Harbour Golf Committee and a member of the Heritage Harbour Lounge Committee.
He loved cruising with his family, playing golf, travel, reading and the Green Bay Packers.
Ray is survived by his wife Virginia Keeler, and many children and grandchildren.


Section V - Events

AFIO EDUCATIONAL EVENTS IN COMING TWO MONTHS....

Wednesday, 22 June 2016, 5:30pm - New York, NY - Len Predtechenskis, former FBI, discusses "Operating Techniques for Recruiting Foreign Nationals" - at this Metro NY Chapter Meeting.

SPEAKER: Len Predtechenskis, Retired FBI Special Agent. He operated undercover, recruited many Soviet/Russian agents for the US Government, debriefed and resettled dozens of defectors, directed/lead agent in many "false flag", "red herring" and "double agent" operations.
TOPIC: "Operating Techniques for Recruiting Foreign Nationals"
LOCATION: Society of Illustrators building, 128 East 63rd Street. Between Park & Lexington Ave.
TIME: Registration starts 5:30 PM Meeting starts 6:00 PM
COST: $50/person. Payment at the door, cash & check only. Full dinner, cash bar.
REGISTER: Strongly suggested, not required. Phone Jerry Goodwin 646-717-3776 or Email: afiometro@gmail.com

Other Upcoming Events


Monday, 27 June 2016, 6:30-9pm - Washington, DC - Lockpicking 101 - International Spy Museum Spy School Workshop

Spying today may seem dominated by the digital realm of hackers, cryptography, and eavesdropping, but the field operative will never go away. In the physical world, where secrets are under lock and key, sometimes the only way in is to pick the lock.
In this workshop, led by Preston Thomas, president of the DC Chapter of The Open Organization Of Lockpickers, you'll learn the art and science of how locks work-and how to open them. From classical picking to field expedient methods, we will survey the tools and techniques necessary to attack many common locks. Try your hand at getting out of handcuffs and zip ties. Discover if you really can escape with just your wits and a bobby pin. Participants will work in small groups getting hands-on practice with lockpicking experts, and once you've got "the touch," you can put your skills to the test against other students.
Location: City Tap House, 901 9th St NW, Washington, DC - Gallery Place/Chinatown Metrorail Station
High-quality lock picking kits will be available to take home after the class for $25 (cash or check). Please email soltmans@spymusem.org if you would like one.
Food and drink will be available for purchase throughout the event.
TICKETS: $35. Space limited to 30 - advance registration required. No tickets available at event. To register contact aabrell@spymuseum.org

Thursday, 30 June 2016, 5 - 7pm - Washington, DC - "The Color of Courage" featuring Dr. Julian Kulski at the Daniel Morgan Academy

The Daniel Morgan Academy hosts an exclusive, invitation-only national security lecture featuring The Color of Courage: The World War II Diary of Julian Kulski with a presentation by Dr. Julian Kulski.
"If there is going to be a war, I do not want to miss it." So writes Julian Kulski a few days before WWII begins, in his remarkable diary of a boy at war from ages 10 to 16.
At age 12 Kulski is recruited as a soldier in the clandestine Underground Army by his Boy Scout leader, and at age 13 enters the Warsaw Ghetto on a secret mission. Arrested by the Gestapo at age 14 and sentenced to Auschwitz, he is rescued and joins the commandos. At age 15, Kulski fights in the 1944 Warsaw Uprising. He ends the war as a German POW, finally risking a dash for freedom onto an American truck instead of waiting for Soviet "liberation."
Dr. Julian Kulski will speak about his experiences fighting in the Polish Underground during World War II.
TIMES: Reception with food and wine starts at 5 pm. Presentation by Dr. Kulski is from 6 to 7 pm.
LOCATION: Daniel Morgan Academy, 1620 L St NW, 7th Floor, Washington, DC 20036; Near Farragut North and West Metro Stations
For more information or to RSVP do so here or contact Frank Fletcher, Director of Lectures and Seminars, DMA at Fletcher@DanielMorgan.academy; call 202-759-4988.
Please note: DMA events are by invitation-only and not open to the public. Contact the Academy for more information.

Thursday, 7 July 2016, 11:30am - 1pm - Washington, DC - "Expectations of Privacy in the Digital Age" by Terry Roberts, Former DD/ONI, at the Daniel Morgan Academy

The Daniel Morgan Academy hosts an exclusive, invitation-only national security lecture featuring Terry Roberts, former Deputy Director of Naval Intelligence, speaking on the expectation of privacy in the digital age.

TIMING: Reception at 11:30 am, remarks by Terry Roberts at noon followed by Q & A.
LOCATION: Daniel Morgan Academy, 1620 L St NW, 7th Floor, Washington, DC 20036; Near Farragut North and West Metro Stations
For more information or to RSVP do so here or contact Frank Fletcher, Director of Lectures and Seminars, DMA at Fletcher@DanielMorgan.academy; call 202-759-4988.
Please note: DMA events are by invitation-only and not open to the public. Contact the Academy for more information.

Saturday, 9 July 2016, 11am-noon - Washington, DC - The Magic of Spying: Tradecraft Trickery - at the International Spy Museum

In the real-life world of espionage, spies often call upon the art of magic and illusion to distract the enemy, make evidence disappear, and escape unnoticed. Join professional magician, Peter Wood, as he demonstrates the art of misdirection, sleight of hand, and other illusions used by skilled spies. This one of a kind performance, custom-designed for the Spy Museum, is guaranteed to fascinate children and adults alike. Ages: 7 and up. Space is limited' advance registration required. Tickets: $10. Visit www.spymuseum.org

Wednesday, 13 July 2016, 6:30-8:30pm - Washington, DC - High Hand: The Authors Behind the Thrills - at the International Spy Museum

Espionage, political machinations, oil, secretly funded high-tech weapons of intelligence, ghosts of the Cold War, murder, and poker. Join the three co-authors of High Hand, a new spy thriller, to explore how they used their professional and personal experiences to create this novel written using the pseudonym Curtis J. James on the CIA and SVR. The authors: Pentagon journalist James Rosen, and cancer scientist Curtis Harris, and James Ellenberger, a former senior official of a national labor federation, will be joined by Spy Museum board member and retired KGB Major General Oleg D. Kalugin. Tickets: $12. Visit www.spymuseum.org

Tuesday, 19 July 2016, 7- 8:15pm - Washington, DC - Spy School Workshop with Eric O'Neill and SpyChasers presents: Welcome to Khandar - at the International Spy Museum

You are invited to an evening at the Khandar Embassy with Eric O'Neill - but all is not as it seems. The Embassy has just become the center of an espionage investigation with global repercussions. It's up to you to identify the spy from among four Embassy luminaries before time runs out. Space is limited to 25 participants -- advance registration is required. Tickets: $45. Visit www.spymuseum.org

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