Equifax Update: More Breaches, More Lies

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You will be mad.

You probably don’t have a contract with Equifax. Your creditors do.

When you apply for a loan, you give creditors permission to:

  1. Obtain your credit file.
  2. Update your credit file.

You expect that creditors vet their vendors, don’t you? You assume banks and credit card companies test their vendors’ security.

And you expect financial services companies like Equifax to be on the up and up.

But they’re not. None of them. The banks. The credit cards. The credit bureaus. They’re not on the up and up. They’re on the cheap and dirty. They cut corners. They pocket the money and skip the quality checks.

They don’t do their due diligence.

None of them.

Today we learned that Equifax knew its security was garbage long before they originally admitted. In other words, Equifax’s statements of last week were lies.

As a reminder:

  • Equifax lost sensitive financial and personal data on 143 MILLION Americans
  • Equifax admits your data was compromised in May and June and July
  • Equifax admits it concealed its breach until September
  • Equifax admits its chief financial officer and other high-ranking managers sold their Equifax shares after the breach was discovered but before the breach was disclosed (insider trading)
  • Equifax denies that its executives knew of the breach before they sold their stock (laughable)

It turns out Equifax (and its executives) knew of the breach long before July.

Via Zero Hedge:

Meanwhile, far from keeping the original hack a secret, “in early March Equifax began notifying a small number of outsiders and banking customers that it had suffered a breach and was bringing in a security firm to help investigate. The company’s outside counsel, Atlanta-based law firm King & Spalding, first engaged Mandiant at about that time. While it’s not clear how long the Mandiant and Equifax security teams conducted that probe, one person said there are indications it began to wrap up in May.”

The revelation of an earlier breach – and one which comes from the press instead of the company itself – will likely raise questions for the company’s executives over whether that investigation was sufficiently thorough or if it was closed too soon, and also why it wasn’t disclosed as part of the Sept. 7 press release.

In early MARCH! Equifax knew they’d lost your data in March!

So, now how dishonest does Equifax look?

In my prior report on Equifax, I introduced you to John Gamble “with your money,” the Equifax CFO. I speculated that Mr. Gamble traded Equifax shares after learning of the breach. (Mr. Gamble has not personally denied it, but Equifax’s PR agency has.)

Now, Zero Hedge has this:

Now, under the new timeline, the insider sales come several months after the March breach but before the public had any knowledge of major security issues at one of the country’s three big credit-reporting agencies. The new timeline is also likely to focus scrutiny on an earlier sale by Gamble of 14,000 shares on May 23. According to a regulatory filing, which didn’t indicate that the sale was part of a scheduled trading plan, the value of that transaction was $1.91 million, more than twice the size of his Aug. 1 disposal of 6,500 shares for $946,374.

As I wrote in my first report on Equifax, justice requires two things:

  1. Equifax stock goes to zero.
  2. Equifax’s customers (the banks and credit companies who gave your data to Equifax) compensate the hell out of you and their other customers.

This story has legs. Share it with our friends.

And ask all your creditors how they intend to compensate you for the loss of your data. It’s really their problem, not yours.

I still think James Comey is a felon, and the FBI is corrupt

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James Comey exonerated Hillary Clinton three months before he interviewed her.

James Comey exonerated Hillary Clinton before interviewing 16 key witnesses.

James Comey exonerated Hillary Clinton before he gathered any significant evidence.

James Comey gave Hillary Clinton permission to destroy evidence in a felony investigation.

James Comey leaked classified information to the media.

These are all facts. No one disputes them.

They are all crimes of various degrees. Some felonies.

At the time James Comey committed these crimes, he was head of the FBI.

Because of James Comey’s felonies, the FBI probably needs to be disbanded. Shut down. Destroyed. Eliminated.

No one can trust anything the FBI does.

No one can trust anyone who works at the FBI.

Every FBI employee lost most of their credibility today.

Because of James Comey.

And his accessory after the fact, Robert Mueller.

If I were a member of Congress, I would vote against any bill that provided funding to the FBI. Any funding. I’d shit it down.

Once, FBI agents were my heroes. Many former FBI agents still are heroes to me.

But the FBI itself is a criminal organization. Like the mafia. Like a drug cartel. Like the SS. Like the KGB.

The FBI uses its power to destroy political opponents and to protect itself.

James Comey ruined the FBI. For that, every American should demand Comey’s prosecution.

Lawyer up, Jimmy. Your days are numbered.

Why I’m Betting on an Indictment of Comey

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I made a lot of money on the election. Most of that money I cashed out. But I left a small balance in case I saw another opportunity to bet against the prevailing wisdom.

I saw that opportunityt last night.

My PredictIt Success

In January 2016, I bought three kinds of shares on PredictIt, the prediction market.

  1. Trump would win the Republican nomination.
  2. Trump would win the White House.
  3. Republicans would control both houses of Congress and the White House.

The first two shares were trading around 10 cents each. The third around 20 cents.

I set up a scheme to mitigate my risks. I immediately offered to sell my shares in each pool according to this formula:

  • Sell 25% of shares when the price reaches 25 cents
  • Sell 50% of shares when the price reaches 50 cents
  • Sell 15% of shares when the price reaches 75 cents
  • Sell the last 10% of shares when the price reaches 99 cents (maximum)

Yes, I could have made slightly more by holding everything for 99 cents. But there’s always a chance that wouldn’t happen. So I hedged a bit.

The result: I made a lot of money. About 4x my investment in 10 months. Try to get that from your 401k.

Today, I used that balance to buy 100 shares of YES on the question “Will a federal criminal charge be filed against James Comey in 2017?”

Since I’m playing with house money, it’s a safe bet. And it keeps getting safer with every bit of news out of Washington. Plus, the opinions of leading criminal lawyers.

What a Top Lawyer Says about Comey

Let’s look at the lawyer first.

Jonathan Turley is a famous lawyer. You see him on TV discussing big, complicated cases. He’s well respected in the lawyer world.

Jonathan Turley

Turley sees James Comey’s recent testimony as a very bad move by Comey. For two reasons that will haunt Comey for the rest of his life:

  1. Comey admitted that he let Trump’s tweets bait him into
  2. releasing privileged information in violation of federal law.

The first admission shows Comey to be an emotional showboat. Comey displayed the kind of selfish immaturity that destroys careers. Political careers, legal careers, cop careers, even doctor careers. Any kind of career comes crashing down when you let your emotions, especially emotions involving pride, dictate your actions.

Comey Committed Character Suicide

As Turley explains:

The greatest irony is that Trump succeeded in baiting Comey to a degree that even Trump could not have imagined. After calling Comey a “showboat” and poor director, Comey proceeded to commit an unethical and unprofessional act in leaking damaging memos against Trump.

Indeed. To anyone who has a neutral position on Trump, Trump totally won Thursday. He won because Trump’s actions in this matter were entirely consistent with Trump’s character. We have come to expect Trump to tweet outlandish statements in the middle of the night. Trump haters complain about this behavior. They say it’s a character flaw. But at least he’s consistent.

Comey was the FBI Director. Most people think of the FBI Director as a sober, thoughtful, and careful person. Someone skilled at tempering his emotions and behaving rationally. Someone free from fits of intemperate actions in the middle of the night.

So, what did Comey do when Trump tweeted about him? Comey got up in the middle of the night and leaked privileged information to a friend for the purpose of damaging the president. 

In other words, Comey broke character to play tit-for-tat with Trump.

That’s the end of Comey as a rational, temperate lawyer. We all know he’s not. But where’s the crime in what Comey did?

Comey Likely Committed Multiple Crimes

Turley explains:

Besides being subject to nondisclosure agreements, Comey falls under federal laws governing the disclosure of classified and unclassified information. Assuming that the memos were not classified (though it seems odd that it would not be classified even on the confidential level), there is 18 U.S.C. § 641, which makes it a crime to steal, sell, or convey “any record, voucher, money, or thing of value of the United States or of any department or agency thereof.”

Comey literally admitted under oath to willfully violating 18 U.S.C § 641. His notes, recorded on an FBI system, were the property of the government. A record of value in an ongoing investigation. Which Comey stole and conveyed for personal gain. In this case, his gain was reputation. But it was a gain, nonetheless.

And it gets worse as Turley digs deeper into the law:

One such regulation is § 2635.703, on the use of nonpublic information, which states, “An employee shall not engage in a financial transaction using nonpublic information, nor allow the improper use of nonpublic information to further his own private interest or that of another, whether through advice or recommendation, or by knowing unauthorized disclosure.”

Turley also finds that Comey violated his FBI contract:

The standard FBI employment agreement bars the unauthorized disclosure of information “contained in the files, electronic or paper, of the FBI” that impact the bureau and specifically pledges that “I will not reveal, by any means, any information or material from or related to FBI files or any other information acquired by virtue of my official employment to any unauthorized recipient without prior official written authorization by the FBI.”

And Comey violated legal ethics which could result in disbarment:

Comey is also subject to bar rules on releasing information inimical to the interests of his former employer. For example, under professional rule 1.6, lawyers need to secure authority to release information that “(1) reveal a confidence or secret of the lawyer’s client; (2) use a confidence or secret of the lawyer’s client to the disadvantage of the client; [or] (3) use a confidence or secret of the lawyer’s client for the advantage of the lawyer or of a third person.”

Comey Indictment a Safe Bet

Add it all up, and it looks like Nut Job Comey is the emotional wreck Trump told us he was. Trump was right about Comey all along.

That’s why my 100 shares of PredictIt stock look like a great investment right now. In the coming days, special investigator Robert Mueller will announce he’s expanding his investigation to look into Comey’s actions. By Christmas, Comey will cop a plea.

It’s going to be a very bad year for anti-Trump.

UPDATE: The price on YES went down to 8 cents, so I bought 40 more shares. 🙂

No Obstruction. No Collusion. He’s a Leaker. UPDATES

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Scott Adams pointed out the linguistic brilliance of Donald Trump’s perfect summation of James Comey’s failed takedown attempt.

“No obstruction. No collusion. He’s a leaker.”

That’s how Trump summarized Comey’s testimony to the Senate’s Russian Conspiracy Hoax Committee.

Click to watch:

Scott is a genius in persuasion and psychology. Everything he just said about Trump’s linguistic kill-shot is dead-on accurate. Trump destroyed Comey without firing a shot. “No obstruction. No collusion. He’s a leaker.”

Comey is a lawyer with a limited vocabulary. Trump has the best words. We just saw the two of them side-by-side, and Trump destroyed his rival.

I predict Comey will plead guilty before Christmas to avoid time in prison. You can mock me if I’m wrong. But wait until December 26 just so you don’t look foolish.

Comey’s crime? He freely admitted it under oath yesterday. Robert Mueller will expand his investigation to cover this crime soon.

UPDATE: Trump’s lawyer filing DOJ IG complaint against Comey. The IG will forward the complaint to Robert Mueller. My prediction is already coming true.

UPDATE 2: I bought 100 shares of YES on PredictIt. You can, too.

Is the New York Times blackmailing FBI and CIA?

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Sounds ridiculous, doesn’t it?

How could a reporter at New York Times blackmail an FBI or CIA agent?

Easily. And everyone who ever went through counter-espionage training knows it.

What Went Down

This morning, British Prime Minister Theresa May chastised the US government. The UK freely shares anti-terrorism intelligence with the US. The US is expected to keep secrets secret.

But the US intel community is one gigantic sieve these days. The intel we got from the Brits hit the front page of the New York Times within hours. The leak jeopardized the UK’s investigation of the Manchester Evil Loser. The Brits were rounding up his accomplices, but the leak revealed information that could tip off those accomplices.

So Theresa May let the US have it. She cut off intel sharing (for a time). Rightly so.

What It Means

The US intel community has made leaking the norm. FBI and CIA agents have developed tight relationships with reporters from the New York Times, Washington Post, and CNN. Those relationships were built to damage Trump. But now these leaks are helping ISIS.

Could be that the FBI and CIA simply forward every drop of intel to their favorite NYTimes reporter. But that’s unlikely.

More likely: reporters are blackmailing the FBI and the CIA. 

How to Develop a Resource

To explain how the New York Times can blackmail the CIA, let’s look at how the CIA “develops” resources. I’ll be brief. If I get something wrong, some CIA veteran can correct me in the comments:

  • Hang out where you might meet someone who knows something you want to know
  • Strike up conversations. Share some secrets about yourself. Gain their trust
  • When they start to talk, listen. Take notes
  • When they prove they have insider access to some key target, ask them more probing questions
  • While all this going, have your colleagues video and audio record your ever interaction with this unsuspecting stooge
  • When you decide it’s time for the stooge to gather serious intel, inform them that you’re with the CIA and every secret they’ve shared with your new friend is preserved on 4K video with surround sound
  • Offer to share your video and audio with the stooge’s buddy, who happens to be an al Qaeda bigwig
  • Watch your stooge turn white, then give you all the intel you need
  • Until the al Qaeda bigwig figures out what’s going on
  • Or until the CIA leaks the stooge’s name

That’s about how the CIA does it. It’s also how the FBI infiltrates organized crime. It’s also how salesmen work. Up to a point. They all build rapport before dropping the big ask. Only the CIA has evidence that could, in the wrong hands, get the stooge (and his family) tortured and killed. If it got into the wrong hands.

What the New York Times Has on FBI and CIA

I count at least 17 felonies committed by FBI and CIA agents since December. All in an attempt to hurt Trump. All through intel leaks to the New York Times and Washington Post.

The Times and Post reporters who developed those stooges at the FBI and the CIA know their names. They have them on tape. They could destroy their sources. Unless those sources keep cooperating.

When those reporters want more intel for a story, who do you think they call? What do you think they tell them? Something like, “Hey, Jimmy. How’s it going? Gee, Jim, I’d love some pictures of the carnage over in England . . . Oh, that’s classified? Well, gee, that’s too bad. Cause I’d really like to see those pictures. In fact, Jimmy, I’d like to see them so bad. If I don’t see those pictures, Jim, I might go out and get drunk. If I get drunk, I might get loose lips. I get that way ya know. I might even tell somebody where I got the Flynn documents. That’d be terrible.”

So FBI Jimmy coughs up the graphic photos.

That’s how it works. Gain confidence. Use blackmail.

Sounds like the New York Times is using the CIA’s game against the CIA now.

Maybe Trump should offer immunity to FBI and CIA agents who’ve been blackmailed. In exchange for giving up their handlers at New York Times and Washington Post. The agents would be fire, of course. But they wouldn’t go to jail.