CIA using Macau casinos to recruit Chinese officials, says report

Sands casino in Macau ChinaOfficials in China think that United States spy agencies are using casinos in Macau to entrap Chinese government employees, according to a report produced on behalf of an American-owned casino chain in the former Portuguese colony. The report was produced by a private investigator and was commissioned by Sands China, the Macau branch of a casino venture owned by American gambling magnate Sheldon Adelson. Its goal was to investigate why the Chinese-appointed authorities in Macau were hostile to the gambling industry in general and Sands China in particular.

The report is dated June 25, 2010, and includes a warning that it should not be shared with Chinese officials in Macau or in mainland China. It cites several unnamed officials in China’s Liaison Office, which governs Macau and Hong Kong, as well as sources in China’s Ministry of Foreign Affairs, and Chinese businessmen with close ties to the government in Beijing. It suggests that Beijing is weary of the damage caused to its public image by thousands of its employees gambling away an estimated $2 billion each year in Macau. Additionally, says the report, the central government in Beijing is hostile to the foreign-owned gambling industry in Macau because it believes that it collaborates with Western intelligence agencies. Sands China establishments in Macau, in particular, are believed by the Chinese government to be recruiting grounds for the United States Central Intelligence Agency, says the 2010 report.

Citing “well-placed sources” in the Chinese capital, the report suggests that the fear of espionage is “the primary subject” that causes Beijing’s hostility toward Sands China. It notes that “many of the [Chinese] officials we contacted were of the view that US intelligence agencies […] have penetrated and utilized the casinos [in Macau] to support their operations”. It adds that Chinese counterintelligence agencies have “evidence” that CIA operatives “monitor mainland government officials” who visit Macau to gamble, paying particular attention to those losing large amounts of money, or those visiting Macau without the knowledge of their superiors. They then “lure and entrap” them, forcing them “to cooperate with US government interests”.

The report was uncovered by the Investigative Reporting Program of the University of California Berkeley’s Graduate School of Journalism and published on Wednesday in British broadsheet The Guardian. The paper said the report was among a set of documents filed with a court in Las Vegas, where the former head of Sands’ Macau casinos is suing the company for wrongful dismissal. The Guardian contacted the Sands Company, which rejected the contents of the report as “a collection of meaningless speculation”. Its senior vice president for global communications and corporate affairs, Ron Reese, also dismissed the report as “an idea for a movie script”.

Author: Joseph Fitsanakis | Date: 23 July 2015 | Permalink:

News you may have missed #891

Edward SnowdenBy IAN ALLEN |
►►Sophisticated malware found in 10 countries ‘came from Lebanon’. An Israeli-based computer security firm has discovered a computer spying campaign that it said “likely” originated with a government agency or political group in Lebanon, underscoring how far the capability for sophisticated computer espionage is spreading beyond the world’s top powers. Researchers ruled out any financial motive for the effort that targeted telecommunications and networking companies, military contractors, media organizations and other institutions in Lebanon, Israel, Turkey and seven other countries. The campaign dates back at least three years and allegedly deploys hand-crafted software with some of the hallmarks of state-sponsored computer espionage.
►►Canada’s spy watchdog struggles to keep tabs on agencies. The Security Intelligence Review Committee (SIRC), which monitors Canada’s intelligence agencies, said continued vacancies on its board, the inability to investigate spy operations with other agencies, and delays in intelligence agencies providing required information are “key risks” to its mandate. As a result, SIRC said it can review only a “small number” of intelligence operations each year.
►►Analysis: After Snowden NSA faces recruitment challenge. This year, the NSA needs to find 1,600 recruits. Hundreds of them must come from highly specialized fields like computer science and mathematics. So far the agency has been successful. But with its popularity down, and pay from wealthy Silicon Valley companies way up, Agency officials concede that recruitment is a worry.

British spy agencies launch recruitment drive for Russian speakers

Amid mounting tensions between Russia and the West, British spy agencies have announced an ambitious recruitment campaign aimed at hiring a new generation of Russian-language specialists. The Security Service, known as MI5, which is responsible for domestic security and counterintelligence, posted an advertisement on its website this week, alerting potential applicants that the job search for Russian-language speakers will officially launch “in mid-November 2014”. The recruitment campaign, which is described on the spy agency’s website as “an exciting opportunity to match your language skills to a position in MI5”, appears to be jointly administered with the General Communications Headquarters (GCHQ), Britain’s signals intelligence agency, which is tasked with intercepting foreign communications. The move takes place in a wider context of deteriorating relations between Moscow and Western Europe, notably in response to Russia’s ongoing invasion of southeastern Ukraine and annexation of Crimea. Some suggest that there has also been a low-intensity intelligence war taking place between London and Moscow ever since the assassination in the British capital of former KGB officer Alexander Litvinenko. In late 2012, an officer of the Royal Navy was captured during a counterintelligence sting operation while trying to sell top-secret British government documents to people he believed were Russian intelligence operatives. A few months later, the British government let it be known of its increasing annoyance by persistent allegations made in the Russian media that Denis Keefe, the UK’s deputy ambassador to Moscow, was “an undercover spy, with his diplomatic position serving as a smokescreen”. In March of 2013, Oleg Gordievsky, the Soviet KGB’s former station chief in London, who defected to the UK in the 1980s, alleged in an interview that Russia operates as many spies in Britain today as it did during the Cold War. His comments were echoed earlier this year by the former director of MI5, Jonathan Evans, who said that there had been no change in the number of undeclared Russian intelligence officers operating in Britain since the end of the Cold War. Evans said that up to 50 undeclared Russian military and civilian spies were believed to be operating in Britain at any given moment. In June of this year, intelNews reported that the crisis in Crimea had caused the British military to hurriedly reach out to hundreds of retired Russian-language analysts who left the service at the end of the Cold War, most of whom are now in their 60s.

News you may have missed #884 (Mossad edition)

Mossad sealBy IAN ALLEN |
►►How Israel spies on the Sinai. Israeli intelligence services have expanded their activities in the Sinai Peninsula since the Hosni Mubarak regime fell in 2011, and along with it, the Sinai state security apparatus affiliated with the Egyptian Ministry of Interior. Israeli intelligence services often target young smugglers, attempting to pressure them into working as operatives for Israel in the peninsula.
►►Veteran Mossad operative Mike Harari dies. Israeli secret service agent Mike Harari, who played a major role in planning WRATH OF GOD, Mossad’s revenge attacks against Palestinian militants implicated in the 1972 Munich massacre of the country’s Olympics team, has died. He was 87. Harari was also involved in planning Israel’s dramatic rescue of hostages held by militants in Entebbe, Uganda in 1976. He was depicted by Israeli actor Moshe Ivgy in Steven Spielberg’s 2005 film “Munich”, a controversial account of the Operation WRATH OF GOD affair.
►►Mossad launches new recruiting website. The Mossad has launched a new website, in several languages, in order to recruit candidates to its ranks. The reported goal of the upgraded site is to make the organization more accessible to potential recruits in Israel and abroad, who “may not be exposed to the variety of positions available in operations, intelligence, technology and cyber, and administration”. The Israeli covert-action agency says positions are available for men and women alike.

New generation of FBI counterintelligence agents enters the field

The Federal Bureau of Investigation, America’s foremost counterintelligence agency, is preparing to field its first generation of operatives who acquired the bulk of their professional experiences after 9/11. In an enlightening analysis published in Newsweek, veteran intelligence corresponded Jeff Stein says the FBI’s is now being staffed by a new breed of field agents. This new cohort, which is gradually replacing the older generation of counterterrorism and counterintelligence agents, is far more skilled in the geopolitics of Islam, something that distinguishes them from their older colleagues. Tim Murphy, who recently retired as Deputy Director at the Bureau, told Stein that now “everyone in [FBI] counterterrorism knows the difference [between Sunnis and Shiites]”, which was not the case for many years after 9/11. The new FBI agents, said Murphy, also know “know the difference between factions in al Qaeda [and] the political and religious differences” that feed political Islam. The retired official added that over half of the agents on duty now at the FBI entered the Bureau after 9/11. Their interest in counterterrorism and counterintelligence has been furthered by the FBI’s decision to open up a host of new career branches for agents with specializations in intelligence. The latter have now started to enter the Bureau with degrees in international relations, intelligence studies, or computer science, whereas some years ago backgrounds in law and accounting topped the lists of new recruits. But new counterintelligence and counterterrorism agents are far more into “the world of al-Qaeda and Hezbollah, Chinese hackers and Russian spies”, says Stein. Read more of this post

Is mismanagement driving away some of the CIA’s best talent?

CIA headquartersBy IAN ALLEN | |
Poor management practices and a culture that tolerates blunders by senior officials are generating cynicism and disillusionment among employees at the United States Central Intelligence Agency, according to an internal study. Completed in 2010 by the CIA’s Office of the Inspector General, the study was released in heavily redacted form last week, in response to a Freedom of Information Act request. The Los Angeles Times, which filed the request in 2011, said the report identifies mismanagement and unaccountability among senior leadership as major factors contributing to the CIA’s “retention challenges”. It cites a 2009 Agency-wide anonymous survey, which found that around 12% of the CIA’s workforce was considering resigning. Over half of those said they wanted to leave because of “poor management and a lack of accountability for poor management” among senior-level staff. This feeling is stronger among younger recruits, “who have exhibited high resignation rates in current years”, according to the report. Operations officers at the National Clandestine Service —the CIA’s covert-action arm— are also more disturbed than other Agency employees by perceived mismanagement. The report also notes that the CIA has failed to introduce mechanisms for encouraging accountability, in response to growing concerns by lower-level staff. The Times said it spoke to “more than 20 former [CIA] officers”, who said the 2010 report echoed “longstanding concerns about the CIA’s culture”. Read more of this post

News you may have missed #818 (USA edition)

Osama bin LadenBy IAN ALLEN | |
►►The real-life female CIA officer who helped track bin Laden. The Washington Post has a good article on the real-life career of a female CIA officer who helped the Agency track al-Qaeda founder Osama bin Laden. It is disappointing, however that the article, authored by Greg Miller and Toby Warrick, is headlined “In Zero Dark Thirty she’s the hero; in real life, CIA agent’s career is more complicated”. The CIA employee in question is not an “agent”; she is an officer. In the CIA, agents are assets, people recruited and handled by CIA officers. Amazing that The Post, with its experienced journalists and editors would confuse such a basic operational distinction.
►►US spy agencies to detail cyber-attacks from abroad. The US intelligence community is nearing completion of its first detailed review of cyber-spying against American targets from abroad, including an attempt to calculate US financial losses from hacker attacks based in China. The National Intelligence Estimate, the first involving cyber-espionage, will also seek to determine how large a role the Chinese government plays in directing or coordinating digital attacks aimed at stealing US intellectual property, according to officials who spoke on the condition of anonymity to discuss a classified undertaking.
►►CIA begins LGBT recruiting. As part of the CIA’s efforts to diversify its workforce, the spy agency is reaching out to a group that once was unable to get security clearance: lesbians and gay men. CIA officials have held a networking event for the Miami gay community sponsored by the Miami-Dade Gay and Lesbian Chamber of Commerce and the CIA. “This is the first time we’ve done a networking event of this type with any of the gay and lesbian chamber of commerces in the United States,” says Michael Barber, a self-identified “straight ally” and the spy agency’s LGBT Community Outreach and Liaison program manager.


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