Americans Tricked Into Working For Russia

Bayard & Holmes

~ Piper Bayard

 

Actual Photo of Russian Subversion In Progress

 

Subversion, subversion, subversion . . . When Americans are divided and allow ourselves to see our own countrymen as the “other,” we give our enemies, such as Russia, opportunities to tear our nation apart. When Americans say, “I disagree with you, but you are my brother, and that’s what matters most,” we stand strong against interlopers.

America’s enemies would encourage our internal divisions and self-hatred as a nation. In doing so, they don’t only prey on the haters among us. They prey upon well-meaning people who would work to solve our social problems.

These Americans Were Tricked Into Working for Russia. They Say They Had No Idea.

They probably didn’t.

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Cotton Reigned Until Slavery Was Outsourced

Bayard & Holmes

~ Jay Holmes

Today, Western nations are forced to consider the price and flow of crude oil in all foreign policy decisions concerning the Middle East. From Algeria to Iran, Oil is King. However, back in 1861, petroleum was not yet a major commodity for world markets. Instead, a major commodity was cotton.

America’s South had developed an important economic position in world markets by harvesting and exporting cotton to European markets. In 1860, the United States exported over four million bales of cotton to Europe, with each bale weighing 500 pounds.

 

Girls Picking Cotton
Image by Keystone View Co, public domain
Located at NY Public Library

 

The largest importer of US cotton exports was Great Britain.

American cotton was one of the two major ingredients in profitable textile mills in England. The other critical ingredient was cheap labor, and the UK had plenty of that, as well.

The cash that flowed into the South allowed it to import goods from Northern factories, mills, and foundries. The cotton formula was simple, and the Southern states had the long growing season and four million slaves to make cotton farming highly profitable. Many Southern leaders saw themselves as key players in the global market. As far as they were concerned, cotton was essential to Europe’s economy.

Today when we look back at the Civil War, we might wonder why the less-populated, less-industrialized South would have considered a war with its Northern neighbors.

In 1860, Southern states had a population of nine million citizens and nearly four million slaves. The Union population was twenty-two million. The Northern states could boast of having ten times as much manufacturing production as the South. And, in particular, Southern states produced almost no military equipment or firearms.

To add to the disparity, the Northern states operated with a single, standard railroad gauge covering nearly 98% of Northern routes. An engine in New York could, and did, run just as easily in Michigan. In the South, one symptom of “states rights” parochialism could be seen in its railroads. It had railroads but no railroad system. An individual investor built in any fashion that he saw fit. An engine in Virginia would not only not work in Mississippi, it likely wouldn’t even be able to traverse the state of Virginia. That lack of cooperative planning and central regulation haunted the South throughout the duration of the Confederacy.

On the eve of the American Civil War, the North had the guns, the manufacturing capability and the manpower. The South had cotton and four million slaves.  When the odds are considered, the North would have seemed to have a clear advantage.

 

Women Picking Cotton
Image by J.N. Wilson, public domain.
Located at NY Public Library.

 

However, the South was counting on three factors not normally reported in censuses and almanacs.

First, it was counting on fighting a defensive war, and it had no need to invade the North. The Union army would have to invade the South to recapture it and force its re-entry into the Union. Given the weapons available in 1861, being outnumbered two and a half to one was considered an even match. Trained military leaders with Southern sympathies would not have encouraged secession from the Union if a secession would have required “conquering” Northern states.

Second, and more subtle, the Southern leaders calculated nearly correctly the unwillingness of “lazy city folks” in the North to enter military service and campaign in the South to free slaves that, in the South’s estimation, most of them cared nothing about.

The third “ace up the sleeve” was the 1861 equivalent of an OPEC oil embargo. The South knew, or thought they knew, that European nations would not tolerate an interruption in cotton trade. In weighing the odds for war, many Southern leaders were confident that Europe would threaten intervention and coerce the US to accept the Confederacy’s independence. Guns, ammunition, and the massive mountains of manufactured goods required to feed the glutinous gods of war would flow from Europe like oxen to the sacrificial altar.

That was the plan, anyway.

 

Southern Belle
By Erich Correns, public domain.

 

 

Somewhere between the certainty of a bright Confederate future and Appomattox Courthouse, something went wrong for the South.

On a pleasant spring day on April 12, 1861 amidst a carnival atmosphere with well-dressed, picnicking revelers, Confederate General Pierre Gustave Tautant Beauregard ordered his artillery to open fire on Union-occupied Fort Sumter in the Charleston harbor in South Carolina. A merry time was had by all except for Union Colonel Anderson and the men trapped in the fort.

After thirty-four hours of bombardment, Anderson was allowed to withdraw his men by way of a Union Navy ship, and in exchange for safe passage, the remains of the fort were surrendered to the Confederacy. Beauregard was hailed as a Caesar by the jubilant picnickers and by their cousins across the South. Four hellish years and 630,000 dead Americans later, the spring picnic seemed somewhat less splendid.

 

Gate to Gettysburg local cemetery, which became a battleground.
Image public domain.

 

The Southerners had calculated the odds of defensive action correctly.

Their basic suppositions about the size of the Union forces needed were accurate enough. What was less accurate was their supposition that Northern couch potatoes would not fight. They did. Even after suffering the horrendous casualties while attacking prepared positions at numerous battles, the North still managed to fill the ranks of the Union Army and equip it.

The Southerners had not calculated that Northerners would be willing to pay such a high price in blood to defeat the Confederacy. They were wrong, and the South’s mighty monarch King Cotton had an accidental hand in assisting Union Army recruiters.

The Confederacy was not altogether surprised at England’s reluctance to send its navy to defeat Union Navy blockade of its ports. However, the South was accustomed to life in a democracy and was prepared to coax the Parliament and Queen into seeing the “Southern light.” Southerners knew that Queen Victoria considered slavery an abomination and was reluctant to defend the interests of wealthy slave owners in a fight against the US, so the South played the Cotton Card. . . . It stopped exporting cotton to England.

An island nation with mothers who can’t cook, artists who can barely paint , and army officers who buy their commissions does not come to rule the waves by being stupid. Great Britain saw that Southern move coming.

 

Cotton bales at Bombay port in 1860s.
Image public domain.

 

Great Britain had been at the trade game for a long time, and they were good at it. Unlike the British Army, the British Navy was a well-run meritocracy, and it communicated well with British governments and merchant marine by way of its Admiralty staff. In 1860, a bumper crop of cotton glutted the markets, and England was organized and disciplined enough to invest substantial long term capital in stockpiling it.

Also, far from London, and even farther from the cotton fields of the South, British colonial officials in Bombay saw an opportunity in the chaos caused by the anticipated cotton embargo. The Bombay area had the perfect climate and soil for cotton growing. It also had something better than slaves. Great Britain had cheap, disposable workers who showed up willingly and worked for less than it cost to operate an American slave. England outsourced its need for the Southern slave labor to India, Egypt, and Africa.

While the shortage of cotton imports from the Confederacy did hurt England, and thousands of English laborers were laid off, the problem was short-lived.

Interestingly, even after losing their textile jobs, the British working class remained strongly anti-slavery and pro-Union. Thousands of unemployed Irish, English, and Germans immigrated to the Northern US. Waiting for them on the docks were Army recruiters promising citizenship and bonuses to enlistees. By 1863, many Union regiments had immigrant majorities in their ranks.

Cotton production in India, Egypt, and Africa grew quickly.

By 1863, England had little concern for what happened to the mountains of cotton bales being stockpiled in the Confederacy. The guns, ammunition, and gold were not forthcoming for the South from Europe except at high prices. Cotton was, in fact, not quite king after all. It was nothing more than a commodity.

 

Bombay Cotton Merchant
Image public domain.

 

Across the South and at Gettysburg, Pennsylvania, gravestones mark the resting places of silent witnesses to a war fomented in ignorance and arrogance.

Cotton, the plantation elites, and the American President who had to fight almost more against his Northern cohorts than against the Confederates, are all gone. The great-grandsons of the slaves remain, and, although the reconstruction and social evolution have yet to be completed, the Union remains, as well.

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Jay Holmes is a veteran field operative and a senior member of the intelligence community. His writing partner, Piper Bayard, is the public face of their partnership.

To follow Bayard & Holmes, sign up for the Bayard & Holmes Covert Briefing, or find them at their site, Bayard & Holmes. You may contact them in blog comments at their site, on Twitter at @piperbayard, on Facebook at Bayard & Holmes, or by email at BH@bayardandholmes.com.

© 2017 Bayard & Holmes. All content on this page is protected by copyright. If you would like to use any part of this, please contact us at the above links to request permission.

The USS Fitzgerald/ACX Crystal Collision – Questions & Conclusions

Bayard & Holmes

~ Jay Holmes

At approximately 2:20 a.m. local time on June 17, 2017 the US Navy Destroyer USS Fitzgerald suffered a collision with the Philippines-registered container ship ACX Crystal approximately 64 miles southwest of Yokosuka, Japan.

 

USS Fitzgerald at Yokosuka Naval Base
Image by US Navy employee, public domain

 

The 29,000-ton container ship suffered minor damage and was not impeded from continuing its journey to Tokyo. The 9,000-ton Arleigh Burke class USS Fitzgerald, on the other hand, suffered significant damage on her starboard side. Based on early reports, the USS Fitzgerald was in danger of sinking, and seven of her crew members lost their lives.

First and foremost, we extend our sincere condolences to the families and loved ones of the seven sailors who lost their lives.

This collision reminds us that there is no such thing as a “safe” deployment. Because of what those seven sailors suffered and what their families are now paying, decency demands that we be cautious in drawing conclusions about the causes of the collision.

Our US Navy, along with the broader US defense community, exists to ensure the sovereignty of the United States of America and the freedom and safety of her citizens.

Modern, extravagantly expensive and highly complicated Burke class destroyers play a critical role in that mission. These ships are an important and finite asset, and we currently have sixty-one of them in active service with fourteen more in various stages of design and building.

From my perspective, the loss of any service member always matters. Now, and at a time when only a small minority of eligible young Americans are willing to serve in our military, it is even more important for our military to do what it can to minimize personnel casualties.

In modern corporate America, workers are generally disposable and easily replaceable, but in the modern US military, qualified soldiers and sailors are a precious resource. The US military is in the business of war, and human losses are a grim, but somewhat unavoidable, result of war and war preparations. However, we must endeavor to not waste the lives of our service members due to inadequate equipment, doctrine, training, or leadership.

In an attempt to avoid similar calamities in the future, the US Navy and the US Coast Guard will each conduct thorough independent investigations of the collision.

The Navy will, in fact, conduct two parallel investigations. The Japanese Coast Guard is also conducting an investigation, and the Philippine government has, not surprisingly, announced that it, too, will conduct its own investigation. In addition, beyond all the official investigations, any number of intelligence services from a variety of nations will be searching for any unusual evidence relative to the collision.

All investigations of maritime calamities rely on constructing an accurate and detailed timeline of the events leading up to and subsequent to the impact. The communications logs, navigations logs, bridge recordings, and all physical evidence from the USS Fitzgerald and the ACX Crystal must be examined in detail. Also, all members of both crews must be questioned. The investigators have not had time to gather and examine all of the statements and evidence, and they have yet to offer any conclusions concerning the causes of the accident.

The fact that the professional investigators have yet to draw conclusions has not stopped the legions of not-professional armchair naval experts from reaching ironclad conclusions. The fact that those ironclad conclusions of the not-professionals seem to change by the hour does nothing to dissuade these folks from fervently and passionately espousing what they consider to be irrefutable fact.

Many Americans care a great deal about our Navy, our entire military, and our nation’s defense. That perhaps explains their need to have immediate answers as to whom or what caused the disaster. I salute their patriotism. For a democracy to survive, it requires the diligence of enough of its citizens to overcome apathy. However, I suggest to them that they remain flexible in their views until more evidence is available.

Some of the opinions being passionately expressed are, to say the least, a bit colorful. Most collisions at sea do not involve complex conspiracies or exotic causes, and a collision in a shipping route at night in busy waters is not altogether rare. This collision has our attention because it involved one of our valuable “Burkes,” and because seven sailors lost their lives.

Many of the conspiracy theories popping up are influenced by several key factors.

First, the night was clear. Even on a clear night at sea, haze can impair and distort a helmsman’s or watch stander’s view, and judging the distance and speed of another ship at night is not as simple as it sounds. Even so, in this day and age, we all quite reasonably expect that any modern US Navy warship has adequate radar, sonar, transponder sensors, and adequate information processing systems to detect and note an approaching 29,000-ton freighter. It begs the question, how did the Fitzgerald and ACX Crystal not see each other in time to avoid a collision? In theory, only one of the ships’ crews would need to be aware of the other ship in time to avoid a disaster.

The second reason the public is suspicious is that the accident occurred near Japan, where China and/or North Korea might be able to easily influence events. I, too, am suspicious. In fact, I am justifiably suspicious of the North Koreans and the Chicoms every moment of every day. However, we must remember that suspicion is not, in itself, evidence.

Third, some early and not yet verified statements indicate that the ACX Crystal had her running lights and her navigation transponder off. At this point, my suspicion is that her transponder was on, but I may be wrong. I am not sure about her lights. If they were in fact off, then that may well have been a major contributing factor to the collision. We will have to wait for all the crewmen to be questioned and data logs from multiple sources to be examined before we know if those assertions are accurate.

A fourth factor that drives suspicions of foul play is the fact that as a container ship, sophisticated electronics warfare equipment capable of damaging or temporarily obstructing radar and radio systems could conceivably have been loaded on to the ACX Crystal without the knowledge of the captain or crew. Such equipment could have been activated remotely.

It’s important that for now we remember the critical difference between “could have been” and “was.”

At this point, I estimate that Communist China wants war with the United States even less than we want war with China. In spite of all the propaganda out of China, and in spite of her current efforts to expand her naval power, China remains at a strategic disadvantage in any potential war with the United States. North Korea has been, and remains, less rational in its decision making as compared to China, but the distances between “would do it” and “could do it” remain substantial for now.

One possible factor that many members of the public might not be aware of is the fact a US Navy warship might at times operate without its full suite of Aegis systems active.

Aegis is a powerful and brilliant radar tracking system, but the more powerful a radar system is, the more easily it can be detected by opponents. I have no information indicating that the USS Fitzgerald was on that night, or any night, operating in “quiet” mode. I am simply explaining that it is one possibility.

I understand the tremendous need for answers and explanations.

I feel the same way. I share your anger. I want to know why those sailors died, why our ship was damaged, and who or what is at fault. This sad event is important to me, because our national security is important to me, and because I consider all US military members to be my brothers and sisters. We share an oath that matters to me.

I know that this calamity is also important to many of you. We owe it to the lost sailors and to their families to find the real causes of the collision. I hope that as a country, we will not rely on emotion or conjecture, but rather wait for investigations to lead us to accurate conclusions, because as you read this, many other US Navy and allied ships and sailors are sailing in dangerous waters, and we need accurate information to prevent more loss of life and more damage to valuable ships.

 

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Gunner’s Mate Seaman Dakota Kyle Rigsby, 19, of Palmyra, VA

Yeoman 3rd Class Shingo Alexander Douglass, 25, of San Diego, CA

Sonar Technician 3rd Class Ngoc T Truong Huynh, 25, of Oakville, CN

Gunner’s Mate 2nd Class Noe Hernandez, 26, of Weslaco, TX

Fire Controlman 2nd Class Carlos Victor Ganzon Sibayan, 23, of Chula Vista, CA

Personnel Specialist 1st Class Xavier Alec Martin, 24, of Halethorpe, MD

Fire Controlman 1st Class Gary Leo Rehm Jr., 37, of Elyria, OH

*

Our deepest sympathies to the families and loved ones of these fine sailors.

 

 

Staying Safe in Public Spaces

Bayard & Holmes

With the increasing number of terrorist attacks around the world, the public is becoming ever more aware that it’s wise to take precautions and think about safety measures. Today we welcome former CIA officer Doug Patteson of Inglorious Amateurs, who shares his insights and advice on precautions we should all take as a matter of habit.

 

Staying Safe in Public Spaces

~ Doug Patteson

Whether it is the recent suicide bomb in Manchester UK, or the 2003 The Station nightclub fire, or any number of other recent catastrophic events, we are reminded that we need to always be thinking about our security in public events and transitional spaces. Just because you are in an event or location with robust security, you should not ever take your safety for granted.

 

 

At events like the Manchester attack, we tend to think we are safe. The arena has security, no weapons are allowed, it’s a fun crowd out for a fun evening.

Attackers know these thing too and they tend to look for the weak points in security. In this case, the attacker chose a transitional space, a natural funnel between a primary exit from the arena, and the nearest public transport, the Manchester train station. He knew traffic flow from the concert would be heavy and concentrated. He knew the only likely security in the transitional space would be CCTV cameras (great for post mortem, not so hot for prevention). And he knew that by the nature of the transitional space, no one would think twice about someone loitering (waiting on friends? A train?) carrying luggage (it’s a train station entrance after all).

In 2003, The Station nightclub caught fire and was engulfed in smoke and flames in 5 ½ minutes. Of the 462 people in a club with capacity for only 404, 100 died and 230 were injured. When the fire began, people panicked and fled blindly, trying to exit through the one door they had entered, ignoring other potential exits.

A framework can be helpful in this process. Largely, the model below is familiar to most military or first responders as it is similar to the traditional OODA loop, or Observe, Orient, Decide, Act model of decision making. But, sometimes jargon gets in the way of understanding. So here is some simpler language.

Pay attention

For some reason, when we get around our friends, in a social situation, excited about our plans as they unfold, we stop paying attention to the world around us. When we are alone in public, we tend to pay far more attention to our surroundings. We feel alone, which often makes us feel insecure, less safe, but heightens our focus. Being in a group brings an often false sense of security, and a fair number of distractions.

Don’t let your guard down. Stay vigilant and pay attention to the world around your group. If something seems out of place, or makes you feel off, there is probably a good reason for it. Security professionals often call this situational awareness, which is a fancy way of saying understanding the environment and events you are in, in relation to time and meaning, what is normal and expected, and thus what is out of context and therefore noticeable. And if you notice something that looks out of place, or your spidey senses start tingling, an unattended bag or individual dressed inappropriately for the environment and looking uncomfortable, etc. let someone in authority know.

 

Know the layout

There is a reason flight attendants show passengers where the exits are. Statistics point to a significantly increased probability of surviving a plane crash if you know where the exits are. Virtually any public venue you go to will have multiple entrances/exits. Don’t just remember the one you went through to get there, learn where at least one of the others is.

In 2003, during The Station nightclub fire,  100 people died, 40 of them in the doorway they had entered through. There were three other exits in the building, and an entire front of windows that could have been broken to create egress points. People are creatures of habit, they like to go in the way they came.

Take a few minutes, look for the exits, talk it over with your group and have a plan in case you get separated or things go south.

Take a moment to assess what’s happening

If you are in situation where an event has happened (active shooter, plane disaster, ied), don’t panic. Stop, take a moment to assess the situation. Where is the threat? Is it ongoing? What are my escape options? Remember, you already learned where the various exits were. What is the crowd doing? Is there cover available to me? Or just concealment? Can I leave? Or is hiding my only option?

In the early days of active shooter training, the mantra was Run, Hide, Fight. Today that has been replaced with Avoid, Deny, Defend. In either case though, you need to take a little time to assess what is happening. Don’t freeze however, this is an active assessment informed by your previous knowledge of the area. You are making decisions about your next steps.

Take action

With your assessment in mind, action is now required. Can you safely and quickly leave the area? Which way? What is the crowd doing? There can be significant risk in following the crowd. Crowds can lead to deadly bottlenecks. In the case of a terrorist attack, one tactic we have seen applied is an initial attack designed to stun/assault a crowd, followed by a second, potentially larger attack, designed around a bottleneck of fleeing victims and/or first responders.

Are you responsible for others? Are they with you? Can you communicate with them? Did you set up a meeting place in case you got separated? Now is the time to execute on the plan you worked through earlier. For example, “We are going to head out that emergency exit on the north side of the stage. We will make our way back to our vehicle in section X of the parking lot.” Once you leave, get away from the threat zone. Remember, debris from an explosion can travel long distances. Don’t linger in the area.

Finally, what to do if you or a friend are injured?

Do you know CPR? ABCs (airway, breathing, circulation). Are they conscious? Talking? Take another moment now to assess their injuries. Have you taken any medical training or first aid courses? Do you know to apply pressure if they are bleeding? Do you have a med kit? I highly recommend you get one, get trained on using it, and carry it. Call 911 and, if necessary seek medical attention as soon as possible.

 

 

Look, I don’t want you to live your life in fear. That’s what the bad guys want, whether a bully, criminal or terrorist. Go out with friends. Attend concerts and movies. Travel. Live your life. I am only advocating that you go out in that life a little more prepared. A slightly harder target than the average person. Someone more likely to survive when faced with a deadly threat. Because you have taken the time to pay attention, assess, build a plan and be prepared to execute on it.

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Doug is a former CIA officer with extensive overseas experience in Asia, Europe, Latin America and the Middle East. He is skilled in several foreign languages, personal security, tactical driving, counter terrorism tactics and small arms. He holds an MBA from Wharton and has worked in high tech, private equity and manufacturing. He regularly writes on business and intelligence topics for both web and print publications, serves as an on air SME for news and opinion shows, and consults/produces on film and television productions.

 

For more from Doug, please see his work at Inglorious Amateurs.

The Fox Behind the Desert Fox — Hekmet Fahmy

Bayard & Holmes

~ Jay Holmes

On June 10, 1940, Italy declared war on Great Britain. At the time, Great Britain lacked the resources to invade Italy, and Italy had no intention of invading Great Britain. However, the two enemies, along with France, had large colonial holdings in North Africa. At the time, the Suez Canal in Egypt was critical for Great Britain to connect the British Isles, Gibraltar, and Egypt to its colonial holdings in India, Ceylon, and Burma. Italian Dictator Benito Mussolini was confident that his forces, along with his German allies, could deal a major blow against the British from their bases in Libya, and perhaps threaten the British Suez Canal.

 

Field Marshal Erwin Rommel, 1942 Image from German Federal Archives, wikimedia commons

Field Marshal Erwin Rommel, 1942
Image from German Federal Archives,
wikimedia commons

 

In general, the North African campaign of WWII is remembered as a series of battles. Great Britain dealt a decisive blow against the Italians in Libya. Germany sent reinforcements led by Field Marshal Erwin Rommel, aka the Desert Fox, who pushed the British back to the Egyptian border. Newly appointed British commander Field Marshall Montgomery led UK forces in a series of counterattacks. Those attacks were marginally assisted in the final phases by American landings in Morocco and Tunisia.

Conventional analysis of these battles emphasizes the skills of the opposing leaders. More in-depth descriptions also consider the logistical nightmares that both sides faced during the campaign. However, these assessments are based on well-researched analysis that was conducted without the benefit of certain classified information that was not released before 1970. When we consider the newer information, we learn that Erwin Rommel’s tactical genius and Bernard Montgomery’s inspiring leadership were heavily impacted by a variety of intelligence operations conducted by both sides.

Until July of 1942, Rommel, the Desert Fox, enjoyed a tremendous advantage over the British in the form of timely, detailed, and accurate intelligence about British dispositions, supplies, and intentions. This information came inadvertently from US General Bonner Fellers.

General Fellers was the US liaison with the British in North Africa. Over his objections, he was instructed to use the US diplomatic Black code to transmit messages to the US Joint Chiefs of Staff. Unfortunately, that code was stolen and copied by the Italians from the US Embassy in Italy in September of 1941, prior to the US entry into the war. As a result, Rommel’s staff read every word Fellers sent back to Washington before Washington read it. When Fellers was replaced in July of 1942, his replacement was permitted to switch his communications to US military cyphers. The Germans could no longer decipher the intercepted transmissions.

They turned to an Egyptian belly dancer for help. In the spring of 1942, a team of elite German commandos set out from Libya in US military vehicles captured from the British. Their goal was to infiltrate two Abwher agents, Johannes Eppler and his radio operator Hans Sandstede, into Egypt.

Eppler had a German mother and an Egyptian father and had spent most of his childhood in Alexandria and Cairo. He was well-trained and well-prepared for an operation in Egypt. After a grueling fifteen day trip through the desert, Eppler and Sandstede were dropped near the British Egyptian rail station at Asyut, Egypt.

The German spies made their way to Cairo where they used well forged documents and high quality counterfeit British cash to rent a house boat and set up operations. The crux of Eppler’s plans came down to one roll of the dice. He contacted an ex-girlfriend by the name of Hekmet Fahmy.

 

Hekmet Fahmy Image from BellyDanceMuseum.com, wikimedia commons, public domain

Hekmet Fahmy
Image from BellyDanceMuseum.com,
wikimedia commons, public domain

In 1942, Fahmy was the most popular belly dancer in Egypt. She had access to the best night clubs and parties attended by the elite of local British and Egyptian society. She was the most alluring female celebrity in that country and enjoyed popularity with dance fans across Europe. She was also trusted in the highest military and social circles. Fahmy recruited other popular belly dancers to assist Eppler, allowing him to operate one of the most successful honey traps of all time.

British officers and government officials mistakenly trusted Fahmy and foolishly revealed critical information. As Fahmy’s guests slept in her arms, Eppler searched their personal effects. By keeping track of which British officers from which regiments frequented the clubs, the Germans determined when particular units were being dispatched to the front.

In some cases, British officers and civilians revealed more detailed classified information that was then transmitted to Rommel’s headquarters. In effect, the Germans replaced an American general with an Egyptian belly dancer.

Thanks to the continued flow of high grade intelligence, the Desert Fox confounded British attacks with timely delaying actions and skillful withdrawals. Rommel’s tanks were outnumbered by now, but he could continually place them and their accompanying 77 millimeter anti-tank guns in ideal locations to deal with British movements.

After a few months of operations in Cairo, the British pushed back the Afrika Korps from El Alamein. Communications with Rommel’s headquarters became difficult. Eppler sought out the Egyptian Free Officer Corps, who were anti-British, to request assistance with passing information to Rommel. The young Egyptian officer who agreed to help was the future president of Egypt, Anwar Sadat.

In his 1957 book Revolt on the Nile, Sadat depicts Eppler and Sandstede as being too lazy and too concerned with their own pursuits of flesh. The depiction may have been unfair, as Eppler needed to appear to be a Scandinavian-American playboy in order to conduct his operations most effectively. If Eppler was in fact lazy, then we have to say that he was also fantastically lucky in his recruitment of Fahmy and his skillful use of her connections in gathering vital intelligence for the Desert Fox.

While Fahmy seduced British officers and Eppler fed their information to the Germans, the British simultaneously read and partially decrypted German military communications. They quickly became suspicious that German spies were succeeding in operations against them in Cairo. Either by managing too many local agents without insulation from themselves, or possibly because an Egyptian messenger was compromised, the British captured Eppler, Sandstede, and Fahmy.

With the defeat of the German intelligence operations in Cairo, combined with an increasing flow of Allied supplies and continued decryption of German military communications, the British were able to roll back Rommel across Africa. When the British captured 130,000 Germans in Tunisia in May of 1943, Rommel was on medical leave in Germany.

Rommel was tasked with organizing the German defenses on the French Atlantic Coast. However, he was implicated in a plot to kill Hitler. He committed suicide in exchange for his family being spared from persecution. The Nazis kept his betrayal of Hitler secret, announcing the Desert Fox had died of a heart attack. They gave Rommel a hero’s funeral.

Eppler and Sandstede were sentenced to death as spies, but Egyptian King Farouk intervened, and their sentences were commuted. They were released from prison after the war and Eppler became a successful construction engineer.

Fahmy was assumed to be an unwitting accomplice. She was sentenced to two and a half years in jail. She was unable to revive her career after her release, though she managed a few minor movie roles and invested her own money in a failed movie. The Egyptian Fox who did so much to aid the success of Desert Fox Field Marshal Erwin Rommel turned to Christianity for solace and spent long hours praying in church.

The North Africa campaign of WWII will always be remembered as a battle of supplies and opposing wits, and it was. But it was also a campaign critically affected by the intelligence operations of both opponents, and for a while, the balance of it all was tipped by the weight of a single belly dancer.

 

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Bayard & Holmes Official Photo

Piper Bayard is an author and a recovering attorney. Her writing partner, Jay Holmes, is an anonymous senior member of the intelligence community and a field veteran from the Cold War through the current Global War on Terror. Together, they are the bestselling authors of the international spy thriller, THE SPY BRIDE.

Watch for their upcoming non-fiction release, CHINA — THE PIRATE OF THE SOUTH CHINA SEA.

 

cover-3-china-the-pirate-of-the-south-china-sea

Keep in touch through updates at Bayard & Holmes Covert Briefing.

You can contact Bayard & Holmes in comments below, at their site, Bayard & Holmes, on Twitter at @piperbayard, on Facebook at Bayard & Holmes, or at their email, BH@BayardandHolmes.com.

©2013 Bayard & Holmes. All content on this page is protected by copyright. If you would like to use any part of this, please contact us at the above links to request permission.

 

Fat Leonard, US Navy, & America’s Military Corruption Conspiracy of the Century

Bayard & Holmes

~ Piper Bayard & Jay Holmes

The US Navy is currently caught in the throes of the greatest known American military corruption conspiracy of this century to date.

After a three-year investigation, the story first broke in November, 2013 with the accusation that Director of Naval Intelligence Vice Admiral Ted “Twig” Branch and four other naval officers accepted bribes of cash, prostitutes, and expensive trips in exchange for steering US Navy contracts for port services to a company named Glen Defense Marine Asia (“GDMA”). Indictments started coming down.

 

Leonard Glenn “Fat Leonard” Francis
Image by US Navy, public domain,
via Defense News

 

Several naval officers and civilians were arrested at that time on charges of Conspiracy and Bribery. Among those arrested was the apparent mastermind, one Leonard Glenn “Fat Leonard” Francis, a Malaysian businessman who is the owner and CEO of GDMA. He is a port service kingpin in the South Pacific region with alleged connections to Communist China. According to the US Justice Department prosecutors, “This is the first time multiple officers are charged as working all together in a multi-layered conspiracy, pooling their individual and collective resources and influence on behalf of Francis.” It is a multi-layered conspiracy with countless cost to our nation.

One of the indictments was unsealed on March 14, 2017, and its 78 pages reveal just how extensive this maze of betrayal, greed, debauchery, and arguably even treason had become, involving at least twenty US Navy officers including a Vice Admiral, five Rear Admirals, a Marine Colonel, five Navy Captains, six Navy Commanders, two Navy Lt. Commanders, and a Navy Warrant Officer, along with several top GDMA employees. Some officers even drew their wives into this proven criminal conspiracy.

It began in January of 2006 when Navy Contract Supervisor Paul Simpkins, a Department of Defense civilian employee, contacted Fat Leonard and offered to throw Navy ship docking service contracts to GDMA in exchange for cash.

One month later the cash—our taxpayer dollars—started flowing. GDMA signed a $929,000 contract with the US Navy for docking services. Not only was this the first contract of many, but the Navy now estimates that it paid more than double the normal rate for the services provided. In exchange, Simpkins received $50k in US cash from Fat Leonard’s hands.

In short time, Simpkins and Fat Leonard pulled several naval officers into their dealings—senior officers who were responsible for coordinating missions, directing operations, directing ship movements, and scheduling port visits to service the ships and submarines of our US Navy 7th Fleet, which is the US Far Eastern Fleet. One conspirator was even the commanding officer of the nuclear aircraft carrier, USS George Washington.

Soon, these senior US Navy officers were using their position and influence to direct business to Fat Leonard’s facilities throughout the Far East. Not only that, some of the officers regularly sent the Malaysian classified ship schedules and helped protect GDMA from investigations by the Naval Criminal Investigative Service (“NCIS”). In return, the officers received lavish dinners, time with prostitutes, expensive gifts, travel expenses, and luxury hotel accommodations for themselves and their families.

The recently unsealed indictment best indicates the jaw-dropping extent of the criminal activities undertaken by these conspirators, not to mention their sheer stupidity. It includes charges of Conspiracy, Bribery, False Statements, and Obstruction of Justice, and Conspiracy to Commit Honest Service Fraud—a laundry list of what NOT to do as a naval officer.

As you read this, please keep in mind that it is highly illegal for any government employee, military or civilian, to receive expensive meals and gifts, much less prostitutes and travel expenses, from defense contractors or any other influencers. Also remember that Fat Leonard is a Malaysian national operating a multi-million-dollar business throughout the Far East, including facilities in Hong Kong.

You know, Hong Kong? That place controlled by Communist China, the hostile country that spies on the US at every possible opportunity? Yeah. That Hong Kong. Because a Malaysian criminal defrauding the US government is certainly going to be too moral and ethical to trade or sell our classified information to his host country of China, right?

Let’s look at the list of allegations included in the indictment:

  • Repeated incidents of officers sending Fat Leonard classified information on planned US Navy ship movements via private email and Facebook.

One of numerous examples from the recently unsealed indictment:

“On or about January 25, 2008 at 12:25 a.m., SHEDD, using his cooltoad.com account, emailed Francis [Fat Leonard] multiple classified ship schedules. During this exchange, SHEDD confirmed a change to the schedule of the U.S.S. Fitzgerald to accommodate Francis.”

  • Repeated incidents of officers using their position and influence to steer contracts to GDMA in full knowledge of the fact that GDMA was charging the US approximately twice the going rate for port services.

  • Repeated incidents of officers using their position and influence to re-direct US Navy ships to GDMA’s facilities, often at Fat Leonard’s request. (See quote above.)

  • Repeated incidents of officers actively suppressing GDMA competition for contracts.

  • Repeated incidents of officers using their position and influence to suppress NCIS investigations into GDMA’s overbilling practices.

  • Repeated incidents of officers warning Fat Leonard of investigations and helping to destroy evidence and otherwise obstruct said investigations.

  • Repeated incidents of officers and even their wives “shaping” contacts. “Shaping” is the espionage term of art for courting someone into a conspiratorial ring.

From the indictment:

“In a further effort to recruit AB, the FISC official, into the conspiracy, DEGUZMAN, his wife, Aruffo, Francis and others developed and implemented a ‘shaping op[eration].’ On March 30, 2007, DEGUZMAN wrote to Aruffo: “Ed san, Domo [thank you] for the tuna. Got the other tuna to [AB’s wife] for ‘shaping.’” Aruffo forward the email to Francis, adding, “Beginning our ‘shaping’ OP, dropped off a chunk of tuna that I bought in General Santos [City] for DEGUZMAN’s wife to drop off with [AB’s wife].””

Using wives this way is not uncommon in conspiracies. Sending wives to other wives with expensive gifts is a low risk way to test the waters before inviting new co-conspirators into schemes.

  • Repeated incidents of officers recruiting their successors to continue these criminal activities on behalf of Fat Leonard and GDMA.

  • At least one incident of an officer requesting that Fat Leonard pay off his personal debts, to which Fat Leonard requested and received classified information on planned US Navy ship movements.

  • At least one incident of an officer using his position to influence staffing levels in a Ship Support Office in Hong Kong at the request of and on behalf of Fat Leonard and GDMA.

  • Repeated incidents of officers requesting employment from GDMA for their post-service lives. As a point of interest, none were hired by GDMA.

  • Repeated incidents of officers destroying evidence, making false statements, and obstructing justice once they, themselves, came under investigation.

In return for these actions on his behalf, Fat Leonard provided the officers and many of their wives with lavish meals valued at tens of thousands of dollars, entertainment, travel and hotel expenses, gifts, cash, and the services of prostitutes. The recently unsealed indictment is a laundry list of things US Navy officers should NOT be receiving from smarmy defense contractors.

  • Repeated incidents of officers requesting and receiving travel expenses and lodging accommodations for themselves and their families.

  • Repeated incidents of officers and their wives receiving lavish meals costing tens of thousands of dollars.

From the indictment:

“On or about March 24, 2007, NEWLAND, DEGUZMAN, HORNBECK, and Aruffo attended a multi-course dinner hosted by Francis at the Oak Door in Tokyo, Japan, during which was served, at Francis’s expense, foie gras, Lobster Thermidor, and Sendai Tenderloin, and for dessert, “Liberte Sauvage,” the winning cake of the 10th Coupe du Monde de la Patisserie 2007, followed by cognac and cigars. Each course was paired with fine champagne or wine.”

  • Repeated incidents of officers and their wives receiving expensive gifts from Fat Leonard.

  • Repeated incidents of Fat Leonard arranging and paying for debauchery with prostitutes.

From the recently unsealed indictment:

“On or about May 22 – 25, 2008, during a port visit by the U.S.S. Blue Ridge to Manila, Philippines, HORNBECK, DOLAN, LOVELESS, LAUSMAN, SHEDD, and Sanchez stayed at Francis’s expense at the Makati Shangri-La in Manila, Philippines, where for himself and the U.S. Navy attendees, Francis booked the Presidential Suite. In this venue, Francis hosted a raging multi-day party, with a rotating carousel of prostitutes in attendance, during which the conspirators drank all of the Dom Perignon available at the Shangri-La. Room and alcohol charges born by Francis exceeded $50,000 USD.”

Two of the conspirators emailed Francis to thank him for his hospitality from the private cooltoad.com accounts the group used to communicate regarding their criminal activities.

 


This photo of Presidential Suite, Makati Shangri-La Manila, sans prostitutes, is courtesy of TripAdvisor.

The investigation, opened in 2010, is ongoing, and the indictments continue to flow.

Most of the defendants have not yet gone to trial, and some that had already been convicted have yet to be sentenced. For those readers whose stomachs can endure a more detailed description, the US Justice Department indictments that have been released are available at both the Justice Department web page and the US Naval Institute web site.

The US Justice Department took and kept the lead in this long investigation, and it is pursuing prosecutions in Federal Court. However, if any of the accused officers should miraculously escape the wrath of the federal judges, the US Navy retains the right to re-arrest and charge them under military law with that great catchall “Conduct Unbecoming an Officer.” Some of the minor players have already pleaded out and have, in some cases, received punishments proportional to their crimes.

This Fat Leonard Conspiracy has dealt inestimable damage to our national security on multiple levels:

  1. When the details of deployments and ship schedules are known to our potential enemies, those ships are then more vulnerable to well-planned attacks, including terrorist attacks. That’s why ship schedules are classified in the first place.

  1. Ship deployments are supposed to be determined by our national security interests. When ships are diverted from the locations where they most benefit our national security, that damages our national security in strategic terms.

For example, strategic realities might have indicated that on a particular day, a particular aircraft carrier and her escorting cruiser and destroyers would have been ideally located off the coast of Japan. But because these officers were selling out our country for Lobster Thermidor and blow jobs, those same ships might have been instead in a port in Singapore or Malaysia. But hey, why let national security get in the way of free prostitutes?

  1. The service employees of GDMA, a corporation owned and operated by a criminal, had access to our US Navy vessels and the highly sensitive systems they carry.

We don’t know to what extent Fat Leonard or any of the implicated GDMA employees are involved with the communist Chinese government or with individuals that are involved with the Chinese communist government. By exposing our ships to service employees from foreign docking and ship services that were operated by a criminal, these US Navy conspirators unduly exposed our technology to those who would do us damage, and possibly on behalf of Communist China.

We may never know if the communist Chinese government received classified information about the highly sensitive systems on our US Navy vessels, but it would be an unusual misstep for the Chinese if they did not.

  1. Congress gives money to the US Navy on the assumption that the Navy is not wasting it. The next time the Navy goes to Congress for money, Congress will rightfully ask, “Is that price with or without the hookers?”

The US Navy, the Pentagon, and the current US administration hope to be able to contain any physical conflict with China to the Western Pacific, as opposed to Los Angeles or downtown Kansas City. That requires very expensive ships, very expensive maintenance on those very expensive ships, and the very expensive recruiting of skilled, patriotic young men and women to maintain and operate those very expensive ships. When US Navy officers engage in criminal financial malfeasance, they make it more difficult for the US Navy, the Pentagon, and the president to convince the taxpayers that they should all willingly pay more taxes to modernize the fleet.

It’s hard enough explaining the $13 billion going into the construction of our first of class USS Gerald Ford supercarrier. How can the taxpayers not question building and manning such a ship when they are wondering if and when another Fat Leonard Conspiracy will occur, or if there is even another one ongoing? How can the US taxpayers not wonder if the USS Gerald Ford will be in the hands of trustworthy leaders? How can we all not wonder if the extremely expensive new technologies on that aircraft carrier will end up being exposed to the ongoing, robust espionage efforts of Communist China and Putinesque Imperial Russia?

  1. Such criminal malfeasance on the part of officers at the very top of the US Navy undermines the entire military culture.

Repeatedly throughout the active years of the conspiracy, junior officers objected and made recommendations that their superiors shot down. In a chain of command, junior officers and enlisted service men and women can raise concerns, but they don’t get to question orders. Implicit in that is that the officers at the top can be trusted to be serving our nation and not themselves. When those at the bottom don’t or cannot trust the people at the top, there is a breakdown in authority and effective functioning.

These conspirators, ranging in rank from First Class Petty Officer to Vice Admiral set a horrific example for the US Navy and all military branches with their criminal behavior. Our best young people are not inspired to stay in the Navy and do their best job for their country when their senior leaders are stabbing them in the back. It’s bad enough that our enlisted men and women risk their lives serving at such low wages to defend our country when our politicians so infrequently display any sense of patriotism or selflessness. Having their own senior officers, whose judgments their lives depend on, betray them so coarsely makes it that much harder for those young Americans to continue serving our country selflessly.

There may be much more that we will never know about the Fat Leonard Conspiracy, but there are two known and glaring facts worthy of our attention.

  1. That such a broad conspiracy involving so many people could continue for at least five years speaks poorly of US Navy financial oversight, Navy security oversight, Navy counter-intelligence efforts, and the US Navy’s culture and leadership in general.

  1. That senior Navy officers and Navy Criminal Investigation Division agents willingly helped schedule and then attended wild parties in Hong Kong, Malaysia, and the Philippines, where they were serviced by prostitutes procured by GDMA indicates a frighteningly amateurish level of conduct by trained professionals. Did the Communist Chinese government conduct honeypot operations against these Navy officers with the help of GDMA? We can’t say for certain, but it’s entirely plausible and a good bet. If Holmes were Chinese, he certainly would not have missed the opportunity for such an easy intelligence coup.

The biggest question in all of this is to what degree the US Navy will improve its oversight and its promotion selection process. So far, the changes have been minor. The US Navy needs to conduct a serious investigation not just into these crimes, but into the culture that allowed them to occur.

This problem may seem far removed from our daily lives, but it touches all of us.

We are not helpless. We can let our elected officials in our home districts know that we are revolted by this criminal malfeasance that has bilked we taxpayers of untold millions, and we can demand an investigation into how these crimes went on for so long. This web site has complete instructions on how to reach each representative and senator—How to Contact Your Elected Officials.

These politicians might not care much about our US Navy or our national security, but they all care a great deal about being re-elected. They want our votes. Let’s make them earn those votes for a change. No government will ever be any better than we, the people, force it to be.

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Bayard & Holmes Official Photo

Piper Bayard is an author and a recovering attorney. Her writing partner, Jay Holmes, is an anonymous senior member of the intelligence community and a field veteran from the Cold War through the current Global War on Terror. Together, they are the bestselling authors of the international spy thriller, THE SPY BRIDE.

Watch for their upcoming non-fiction release, CHINA — THE PIRATE OF THE SOUTH CHINA SEA.

 

cover-3-china-the-pirate-of-the-south-china-sea

Keep in touch through updates at Bayard & Holmes Covert Briefing.

You can contact Bayard & Holmes in comments below, at their site, Bayard & Holmes, on Twitter at @piperbayard, on Facebook at Bayard & Holmes, or at their email, BH@BayardandHolmes.com.

©2017 Bayard & Holmes. All content on this page is protected by copyright. If you would like to use any part of this, please contact us at the above links to request permission.

A Grain of Salt–Spy Ships, Officials, and Russian Missiles

Bayard & Holmes

~ Piper Bayard

Big Media, Big Politics, and Big Business all profit financially and politically when they keep the public worked up in fear and/or outrage. They are not our friends. Let’s take some of their power back with a few facts.

Outrage

Throughout media, “US officials” report that a Russian spy ship has “appeared” off the East Coast – the first such sighting during the Trump administration.

Facts

  • Russian spy ships have been “appearing” off the US East Coast since the invention of the radio – literally over ninety years.
  • If we want to get technical, Russian spy ships have been “appearing” off of US coasts ever since Russia could sail to the US coast.
  • It is entirely possible that this is the first time journalists have bothered to notice Russian spy ship patrols.
  • According to the 1982 United Nations Convention on the Law of the Sea, territorial waters extend 12 nautical miles (22.2 km; 13.8 mi) from the mean low water mark of a coastal state.
  • The Russians, Chinese, North Koreans, Iranians, and Emperor Palpatine can legally park their entire navies 14 miles off the US coastline and have a bacchanalia if they want to, and they are breaking no international laws.
  • The Russian spy ship Viktor Leonov was 30 miles off the US coast as of February 15, 2017.
  • There are no allegations that any Russian ships have violated US territorial waters.
  • US ships regularly cruise coastal waters of Russia, China, North Korea, Iran, and every other country on the planet that has a coastline.
  • Merriam-Webster defines “official” as “one who holds or is invested with an office.”
  • Merriam-Webster defines “office” as “a position of responsibility or some degree of executive authority.”
  • Well over 800,000 people in the Intelligence Community hold top secret clearances, which would indicate “position[s] of responsibility or some degree of executive authority.”
  • If I had cited to “officials” in my freshman journalism class, I would have flunked and become the department poster child for shoddy journalism. 

 

Bayard & Holmes Opinion

Where the hell have “journalists” been for the past ninety years? This is like watching seven-year-olds discover Knock-Knock Jokes. These same “journalists” couldn’t even find Russia on a map before it hacked the DNC last August.

Actual photo of journalists finally noticing Russian spy ships off of US coast.

 

Outrage

“Russia Deploys Missile, Violating Treaty and Challenging Trump” ~ The New York Times

 

Facts

  • Versions of this headline are being paired throughout media with “news” of the Russian spy ship.
  • Russia did indeed deploy a new intermediate-range missile, which can be considered a violation of the 1987 Intermediate-Range Nuclear Forces Treaty.
  • Russia deployed this missile in December, 2016, before Trump took office.
  • The Obama administration was aware of the Russian missile program in 2014.
  • The Obama administration warned Russia in 2014 that it was violating the treaty.
  • The Obama administration warned Russia again in 2015 that it was violating the treaty.
  • Russia now has two batteries of the new cruise missiles.

 

Bayard & Holmes Opinion

While the arms treaty issues will certainly pose a challenge to the Trump administration, Putin threw down the Arms Gauntlet during the Obama administration. Obama responded with a frown. This recent missile deployment is not about Putin “challenging” Trump like some sort of international cock fight, as the headline implies. It was just time for Putin to test his new toys. He’d have done it no matter who won the election.

Unfortunately for all of us, Trump threw down the Screw-You Gauntlet when he started his administration by publicly telling off all of the top media muckity-mucks. The media has picked up that gauntlet, and the public is nothing but a pawn in the Media War.

 

Bottom Line

Spy ships are old news, and Putin has had his missile agenda for a very long time. Media and politicians also have their agendas. None of these agendas include an informed, educated public.

Take it all with a grain of salt!