Subject: FBI Public Affairs News Briefing Wednesday, July 08, 2020

From• To: Subject: FBI Public Affairs News Briefing Wednesday, July 08, 2020 Date: Wed, 08 Jul 2020 10:27:00 +0000 c Importan e: Normal Mobile version and searchable archives available at fbi.bulletinintelligence.com. LoIBI News Briefing TO: THE DIRECTOR AND SENIOR STAFF DATE: WEDNESDAY, JULY 8, 2020 6:30 AM EDT TODAY'S TABLE OF CONTENTS LEADING THE NEWS • Director Wray Warns Of Chinese Hacking, Espionage Threats Against American Companies. PROTESTS • US Charges Seven Protesters In Portland, Oregon. • Black Americans Report Hate Crimes, Violence In Wake Of Floyd Protests. • Crowley Says Trump's Mt. Rushmore Speech Was "Absolutely Necessary." • Bernhardt Touts President's American Hero Task Force. • Wolf: Administration Prepared To Help Governors Deal With Surge In Murders. • Grassley: Senate Would "Probably" Override Trump Veto Of Defense Bill. • Park Police Did Not Record Radio Transmissions During Lafayette Square Protest. • Trump Urges Missouri Governor Not To Rename St. Louis. • Columbus, Ohio Activists Seek To Rename City. • Johnson: Intent On Columbus Day Was Mischaracterized. • Minneapolis Neighborhood Seeking To Defund Police Sees Third Sexual Assault In Two Weeks. • Pressley, Tlaib Unveil Bill To Defund Police, Provide Reparations. • Omar: "Whole System" Of US Economy Must Be Gutted Due To "Oppression." • People Of Color Vow Not To Make Purchases On "Blackout Day." • Kenyans Protesting Police Brutality Met With Tear Gars. COUNTER-TERRORISM • FBI Informant Testifies To How He Helped Infiltrate "Boogaloo" Group. • Continuing Coverage: US Soldier Pleads Not Guilty To Planning Attack On His Unit. • Judge Awards $879M From Iran To Khobar Towers Bombing Victims, Families. • UN Human Rights Investigator Says US Killing Of Qassem Soleimani Violated International Law. COUNTER-INTELLIGENCE • Pompeo Blasts Susan Rice Over Russia Bounty Criticism. • DO) Discovers More Material Related To Flynn Investigation. • Wyden Writes Third Letter To State Department Seeking Ukraine Documents. • Stone "Begged" Trump For "An Act Of Clemency." • New Book Reveals How Mueller Was Briefed About Russia Interference In US Election. EFTA00150739 • West Virginia Mother Pleads Guilty To Stealing US Defense Secrets. • Snowden Faces Possible Sanctions in Suit Over Tell-All Book. • Trump Administration Requests Energy Companies Report On Supply Chain Vulnerabilities. • House Bill Would Call On DNI To Investigate How Beijing Might Exploit COVID-19 Pandemic. • DDNI For Mission Integration Beth Sanner Keynote Speaker At INSA Symposium. • Maj. Gen. Jeffrey Kruse Assigned To Advise DNI On Military Affairs. • NYTimes: Russia Bounties Should Not Be Linked To US Troop Withdrawal. • Bolton: Canada Should Not Release Huawei's Meng. • Uncrackable Code Is Puzzling The CIA. CRIMINAL INVESTIGATIONS • New York Regulators Fine Deutsche Bank For Epstein Ties. • Deadly Police Shooting Of Phoenix Man Sparks Protests. • FBI Probing Racist Incident In Indiana. • Continuing Coverage: Georgia Man Sentenced For Child Pornography. • New Mexico Man Charged In Connection To Navajo Nation Murder. • Pennsylvania White Supremacist Sentenced For Methamphetamine Trafficking. • FBI Searching For Wanted North Carolina Man. • Continuing Coverage: FBI Investigating Colorado Bank Robberies. • Rhode Island Man Charged With Drug Trafficking. • Illinois Man Charged In Connection To US Marshal Homicide. • FBI Supporting Search Efforts For Missing Massachusetts Man. • Oklahoma Residents Sentenced For Witness Tampering. • Texas Woman Charged With Sexually Exploiting Teen Family Member. FINANCIAL CRIME & CORPORATE SCANDALS • Former Los Angeles Councilman Pleads Guilty In Corruption Probe. • Virginia Man Indicted For Federal Wire Fraud. CYBER DIVISION • Federal Prosecutors Unseal 2018 Indictment Charging Kazakh Man In Hacks. • Pompeo: Administration May Ban Chinese Apps, Including TikTok. • Judge Criticizes Federal Prosecutors In Trial Of Alleged Russian Hacker. • Huawei Official Says US Pressure On Brazil Threatens Long Delays In 5G Rollout. • Microsoft Secretly Seized Domains Used In COVID-19-Themed Email Cyberattacks. • CISA Funding Bill Receives Large Boost In Spending Bill. • Massive Vulnerability Uncovered In Popular Networking Device. • Cyber Command Receiving New Version Of Its Training Platform This Fall. INTERNATIONAL RELATIONS • FBI Reportedly To Travel To Ireland In Probe Of Missing American Woman. LAWFUL ACCESS • Cybersecurity Groups Unite In Defending Encryption. OTHER FBI NEWS • House Democrats Propose Increased DO) Funding, More Money For Policing Overhauls. • DO): Probe Of FBI's Handling Of Nassar Case Is Ongoing. • FBI Warns Tennessee Residents About Scam Involving FBI Caller ID. • FBI Physical Fitness App Profiled. OTHER WASHINGTON NEWS EFTA00150740 • Trump Says COVID Death Rate "Down Tenfold" As Confirmed US Cases Top 3M. • Federal Government To Pay $1.6B For Rush Vaccine Development. • Navarro Says Doctors Should Be Allowed To Use Hydroxychloroquine As "An Option." • Wilkie Says Cuomo Ignored VA Coronavirus Guidance. • Biden Says Medical Supplies Should Be Produced In US. • Four GOP Senators Have Said They Will Not Attend Jacksonville Convention. • Florida ICU Beds Filling Up. • Tucson Mayor Says Arizona May Have To Send Patients Out Of State. • Anti-Shutdown Group Gathering Signatures In Push To Limit Whitmer's Powers. • NBC Report Examines Safety Of Air Inside Airplanes. • Professional Sports Leagues Move Toward Reopening. • Administration Pushes For Schools To Reopen This Fall. • States Sue DeVos Over Pandemic Relief Money For Schools. • Colleges Faced With Decisions On Reopening Or Possible Loss Of Foreign Students. • Colleges Planning To Reopen, But Campuses Will Be Half-Empty. • Hanks "Disappointed" By Debate Over Wearing Masks. • WPost Chides Northam For Moving To Reopen Virginia Too Soon. • White House Does Not Want Next Emergency Spending Bill To Top $1T. • ICE May Separate Family Following Judge's Order To Free Migrant Children. • USAGM Employee Review Sparks Fears Of Staff Purge. • Book By Trump's Estranged Niece Slams President, Trump Family. • Trump On Pace To Issue More Than 55 Executive Orders This Year. • Roberts Was Hospitalized Last Month After Suffering Head Injury In A Fall. • Facebook Executives Fail To Convince Ad Boycott Leaders. • NYTimes Analysis: Ahead Of 2020 Election, "A Blizzard Of Litigation" Focused On Voting. INTERNATIONAL NEWS • US Officially Withdraws From WHO Over Coronavirus Response. • WHO Acknowledges Emerging Evidence Of COVID-19 Airborne Spread. • China Racing To Develop COVID-19 Vaccine With Late-Stage Trials Set To Start This Month. • Bolsonaro Tests Positive For Coronavirus. • Japanese Official Touts Use Of Tracing To Contain Coronavirus Without Lockdowns. • Australia Locks Down Melbourne Amid Second Wave Of Cases. • After Initial Success, Israel Sees Spike In Coronavirus Cases. • NYTimes Analysis: Sweden Failed To Limit Deaths Or Economic Damage. • NYTimes: Travel Restrictions On Americans Erode "Sense Of Passport Privilege." • Report: Mossad Foiled Iranian Attacks On Israeli Embassies In Europe. • UN Report Accuses Trump Of Violating International Law In Soleimani Killing. • Researcher Who Antagonized ISIS, Shiite Militias Assassinated In Baghdad. • McKenzie Confident Iraq Will Ask US Forces To Stay. • US Official In Seoul To Discuss North Korea. • Russia Accuses Space Official Of Passing Secrets To NATO. • Report: More Than 180 Bodies Found In Burkina Faso Town. THE BIG PICTURE • Headlines From Today's Front Pages. WASHINGTON'S SCHEDULE • Today's Events In Washington. EFTA00150741 LEADING THE NEWS Director Wray Warns Of Chinese Hacking, Espionage Threats Against American Companies. The Washington Post (7/7, Barrett, 14.2M) reports FBI Director Wray on Tuesday "stepped up his criticism of China's alleged efforts to steal U.S. technology and use subterfuge to pressure policymakers, warning that China is trying to penetrate American firms working on lifesaving research into the coronavirus." In remarks to the Hudson Institute, Wray said, "At this very moment, China is working to compromise American health care organizations, pharmaceutical companies and academic institutions conducting essential covid research." Wray, however, "did not further detail what he suspects Chinese operatives are doing." The Washington Times (7/7, Gertz, 492K) reports Wray also asserted that "the greatest long-term threat to our nation's information, intellectual property and to our economic vitality is the counterintelligence and economic espionage threat from China." Wray, the Fox News (7/7, Blitzer, 27.59M) website reports, said that "of the nearly 5,000 active FBI counterintelligence cases currently under way across the country, almost half are related to China." The Washington Examiner (7/7, Dunleavy, 448K) reports, "Wray, who has often spoken about the dangers posed by Beijing's foreign influence as the Trump administration has stepped up its rhetoric and its actions against the Chinese government, issued his strongest warnings yet about the threat to the U.S. posed by China's actions worldwide during an event hosted by the Hudson Institute on Tuesday. `It's the people of the United States who are the victims of what amounts to Chinese theft on a scale so massive that it represents one of the largest transfers of wealth in human history," The Hill (7/7, Miller, 2.98M) reports, "Wray cited massive Chinese hacking incidents over the past few years in describing the threat, including the 2017 breach of credit agency Equifax that exposed the personal information of around 145 million Americans, and the 2015 data breach of health company Anthem that impacted over 78 million people. He also pointed to concerns over Chinese telecommunications group Huawei having access to communications networks, and efforts by the Chinese Communist Party (CCP) to steal research from U.S. academic institutions and companies." Wray "noted that Secretary of State Mike Pompeo and Attorney General William Barr will also address Chinese counterintelligence threats 'in the next few weeks' due to the significance of the ongoing national security concerns." Reuters (7/7, Landay) reports that Wray "urged China-born people in the United States to contact the FBI if Chinese officials try to force them to return to China under a program of coercion that he said is led by Chinese President Xi linping." Wray "issued the unusual appeal in an address to a think tank in which he reiterated U.S. charges that China is using espionage, cyber theft, blackmail and other means as part of a strategy to replace the United States as the world's dominant economic and technological power. He said Xi has `spearheaded' a program called Fox Hunt aimed at strong-arming people born in China living outside of the country who are regarded as threats to return home in order to silence criticism of Beijing's political and human rights policies." Reuters adds, "The families of those who refuse to return are threatened and some have been arrested in China 'for leverage,' he said. 'Hundreds of these Fox Hunt victims that they target live here in the United States, and many are American citizens or green card holders,' he continued. 'The Chinese government wants to force them to return to China and China's tactics to accomplish this are shocking." The Guardian (UK) (7/7, Borger, 4.19M) reports, "Fox Hunt was launched six years ago by President Xi Jinping, ostensibly to pursue corrupt officials and business executives who had fled abroad. Beijing has celebrated its claimed successes, publicising the return of hundreds of economic fugitives, and issuing wanted lists of those still at large. The Obama administration complained about the activities of undercover agents in 2015. Wray said the operation's principal aim now was to suppress dissent among the diaspora." Wray is quoted saying, "China EFTA00150742 describes Fox Hunt as some kind of international anti-corruption campaign. It is not. Instead, Fox Hunt is a sweeping bid by Xi to target Chinese nationals who he sees as threats and who live outside of China, across the world. We're talking about political rivals, dissidents and critics seeking to expose China's extensive human rights violations." The Washington Examiner (7/7, Dunleavy, 448K) reports, "Wray said, `Hundreds of these Fox Hunt victims that they target live right here in the United States, and many are American citizens or green card holders.' According to Wray, `The Chinese government wants to force them to return to China, and China's tactics to accomplish that are shocking.' As one example, Wray said that when the Chinese government could not locate a Fox Hunt target, it `sent an emissary to visit the target's family' in the U.S. `The message they said to pass along?' Wray asked rhetorically, `The target had two options: return to China promptly, or commit suicide." Wray "said that when a Fox Hunt target refuses to return to China, `their family members both here in the United States and in China have been threatened and coerced, and those back in China have even been arrested for leverage." CNN (7/7, Shortell, 83.16M) reports that Wray "described how the Chinese government has moved to pressure American officials to support its" COVID-19 "response while simultaneously working to steal research on the virus. 'The Chinese government is engaged in a broad, diverse campaign of theft and malign influence and it can execute that campaign with authoritarian efficiency,' Wray said. 'They're calculating, they're persistent, they're patient and they're not subject to the righteous constraints of an open democratic society or the rule of law." Wray "described how the FBI has observed 'cyber activity tracing back to China' aimed at US organizations that have made a significant announcement about research relating to the pandemic within hours of their announcements, mirroring other warnings from US intelligence officials in recent weeks." NBC News (7/7, 6.14M) reports, "Wray said Chinese spying and attempts to steal American technology are growing so fast that the FBI is opening a new China-related counterintelligence case roughly every 10 hours. `The greatest long-term threat to our nation's information and intellectual property and to our economic vitality is the counterintelligence and economic espionage threat from China,' Wray said, adding that China's actions are part of its effort to become the world's sole superpower by any means necessary." Wray "has long been outspoken in criticizing Chinese efforts to steal American secrets, but these were his most detailed remarks to date. He said China also seeks to affect American policy through `a highly sophisticated campaign involving bribery, blackmail, and covert deals' in an effort to affect government officials, journalists and academics." Axios (7/7, Allen-Ebrahimian, 521K) reports, "Wray described the multi-pronged efforts they have seen from China to take advantage of Americans and of U.S. innovation and technology, including the Equifax hack, theft of sensitive military technology, pressure to self- censor, and economic coercion applied to state and local-level U.S. elected officials. 'If you are an American adult, it is more likely than not that China has stolen your personal data. ... Our data isn't the only thing at stake here - so are our health, our livelihoods, and our security,' he said. `We've now reached the point where the FBI is opening a new China-related counterintelligence case approximately every ten hours." AFP (7/7) reports that Wray "said Tuesday that China is pushing its preferences in the US election as part of broad intelligence operations, whose economic impact he called unprecedented." Wray "did not say whether China backed either President Donald Trump or his presumptive Democratic rival Joe Biden, both of whom have harshly criticized Beijing. `China's malign foreign influence campaign targets our policies, our positions, 24/7, 365 days a year,' Wray said at the Hudson Institute. 'So it's not an election-specific threat; it's really more of an all-year, all-the-time threat. But certainly that has implications for elections and they certainly have preferences that go along with that.' Voice of America (7/7, 48K) reports, "Operation Fox Hunt is run by China's Ministry of Public Security. Since its launch, hundreds of Chinese `fugitives' have been brought back to EFTA00150743 China to stand trial, some of them voluntarily, and others after being arrested in foreign countries. The U.S. and China do not have an extradition treaty. Wray said that while the Chinese government could pursue wanted individuals through formal law enforcement channels, it instead uses covert operatives to threaten and cajole the victims into returning to China. 'These people are essentially engaged in rogue law enforcement, unsanctioned, uncoordinated with U.S. law enforcement here in the United States,' Wray said." Also reporting on Wray's speech are Bloomberg (7/7, 4.73M), NextGov (7/7, Konkel), and BBC World News (UK) (7/8, 3.28M). PROTESTS US Charges Seven Protesters In Portland, Oregon. The AP (7/7, Flaccus) reports from Portland, Oregon, "The U.S. Attorney in Oregon announced federal charges Tuesday against seven protesters who are accused in court papers of defacing a federal courthouse and assaulting federal officers during protests in Portland, Oregon against racial injustice and police brutality." The AP adds, "The protesters are charged with offenses ranging from disorderly conduct to destruction of federal property and assaulting a federal officer and were released pending trial after a brief court hearing Monday. The protester facing the most charges, 19-year-old Rowan Olsen, has pleaded not guilty. His federal public defender, Susan Russell, did not immediately respond to a request for comment Tuesday." According to the AP, "Protesters in Portland have demonstrated for 40 consecutive nights following the death of George Floyd and are increasingly focusing their actions on federal properties in the city's downtown core, including the Hatfield Federal Courthouse." Fox News (7/7, McFall, 27.59M) reports, "All seven defendants were released pending a trial, though only four of them, including Rowan Olsen, 19, Andrew Steven Faulkner, 24, Christopher Fellini, 31 and Cody Porter, 28, are actually from the city of Portland. The other three defendants are Shant Singh Ahuja, 28, from Oceanside, Calif., Gretchen Margaret Blank, 29, from Seattle, Wash., and Taimaine Jame Teo, 24, from Eugene, Ore.," Olsen "has been accused of using his body to hold a glass door closed to the Hatfield Federal Courthouse, to prevent officers inside from being able to leave - eventually shattering the door. A mortar firework was shot through the broken door and detonated inside the courthouse near police officers." Black Americans Report Hate Crimes, Violence In Wake Of Floyd Protests. USA Today (7/7, Philimon, 10.31M) reports that a "range of disturbing incidents have happened since George Floyd's death and subsequent protests against racism and police brutality." In Illinois, for example, "a man was charged with a hate crime for allegedly riding his motorcycle into a protest and hitting two people," and "authorities say a KKK leader tried to run his car through a group of peaceful protesters in Virginia." The Washington Examiner (7/7, Smith, 448K), meanwhile, reports that "two white residents of Martinez, California, who painted over a Black Lives Matter mural, have been charged with a hate crime." The Wall Street Journal (7/7, Kusisto, Frosch, Subscription Publication, 7.57M) reports Floyd's death has also prompted the reexamination of older cases by local prosecutors. Crowley Says Trump's Mt. Rushmore Speech Was "Absolutely Necessary." Assistant Treasury Secretary for Public Affairs Monica Crowley said on WOR-AMVI New York (7/7, 17K) that the President's Mt. Rushmore speech was "incredibly necessary given the current context we are in in this country with a lot of upheaval in a lot of different directions - economically, politically, culturally, et cetera. It was absolutely necessary for the President of the United States to give this kind of speech that was grounded in unity. It was grounded in EFTA00150744 American history and it was grounded in patriotism. It was absolutely brilliant. It was pitch perfect and it was exactly what this country needed at that moment and I think, frankly, it will set the tone going forward for the rest of the year." Rove: Trump Tweets On NASCAR, Pro Teams Mulling Name Changes Undermine His Campaign Message. Politico (7/7, Forgey, 4.29M) reports that Karl Rove on Tuesday "expressed new frustration with Donald Trump's erratic messaging, arguing a recent pair of incendiary tweets from the president represented yet another act of self-sabotage inflicted upon his reelection campaign." Rove, who is "advising" the Trump campaign, "criticized the president for following up his scripted weekend appearances with two controversial social media posts Monday. In those tweets, Trump blasted NASCAR's decision to ban the Confederate flag from its races and demanded an apology from the sport's top Black driver, Bubba Wallace. He also reprimanded the Washington Redskins and Cleveland Indians for announcing they would review potential name changes for their sports franchises after years of pressure from Native American groups." Appearing on Fox News, Rove said, "The question is, did what the President tweeted on Monday advance the cause that he laid out on Saturday? And I think the answer is an unambiguous no. It did not." The Washington Examiner (7/7, Brest, 448K) further quotes Rove as saying on Fox News, "The President has a limited number of days between now and the election. And when he tweets, it's a powerful message. And the question is, does that message continue to advance the narrative that he and those around him decided that he would lay out on [Friday) at Mount Rushmore? And the answer is no, it didn't." Rove further stated, "I saw the press secretary yesterday say to the White House press corps, 'Why aren't you asking about all of the violence that was in our American cities over the weekend?' That was a good question. But the answer is because the President didn't tweet about that. He tweeted about Bubba Wallace and the Confederate flag and NASCAR. And I don't see that those advance his cause at all." Pence, Cuccinelli Quizzed On NASCAR's Decision To Ban Confederate Flag. Vice President Pence was asked on Fox News' Special Report (7/7, 1.53M) if NASCAR made the right decision in banning the Confederate flag. Pence said, "Let me say, we respect the right of private organizations to make the decisions that they deem appropriate for their organization and for their fan base, but, you know, at the end of the day the President...believes in freedom of speech, will always stand up for that for every American. ... I think people, whether they be African American or any Americans, looks at the record of this Administration and knows that this is a President who is committed to being President for all of the American people and to seeing all American people live the American dream." Acting Deputy DHS Secretary Ken Cuccinelli was asked on CNNVI (7/7, 1.06M) if he denounces the Confederate flag, which was banned at NASCAR events. Cuccinelli replied, "The White House said they were taking a neutral position. The President was not taking a position on that, and that's what the White House reiterated. So, I support them in that. NASCAR has to make their own decisions, but the President came back and said, or the White House said, he was not pushing them one way or the other. It's not my place to do that. And I think you see a lot of state-level debates, including in my state, in Mississippi, and all over the country and that's where those debates belong. The federal government shouldn't be imposing outcomes in any direction on these otherwise local decisions." Cuccinelli was also interviewed on Fox Business' Lou Dobbs Tonight (7/7, 49K). USA Today Writer: NASCAR, Wallace's Fellow Racers Should Speak Out Against Trump's Tweet. Writing in "For The Win," an offshoot of USA Today (7/7, 10.31M) that features an exclusive focus on social news, Michelle Martinelli, criticizes Trump for suggesting in a tweet that Wallace should apologize "after a noose was found in June in the Talladega Superspeedway garage stall belonging to him. ... The disparaging tweet also contains multiple lies and illogical claims, including" Trump "calling the incident a 'HOAX,' despite the FBI and NASCAR saying otherwise." Martinelli says that Trump "targeted one of NASCAR's drivers and impugned his character, and NASCAR responded with a mediocre statement at best. NASCAR EFTA00150745 needs to - and should want to - take a stronger stance in favor of one of its drivers. And the same goes for Wallace's fellow competitors. ... Most have remained silent regarding Trump's disparaging tweet, and everyone needs to do better and speak up." Bernhardt Touts President's American Hero Task Force. Interior Secretary Bernhardt said on the Brian Kilmeade ShowVi (7/7), "The President last week established a task force for rebuilding and building monuments to America's heroes. The President recognizes that we owe our greatness to those who made past sacrifices and statues can serve as silent teachers preserving the memory of our American greatness and they can also can stir a spirit of responsibility and unity. ... This Garden of Heroes can really help us strive for a more perfect union. I think the President is really responding very forcefully after witnessing a campaign that really is intended to wipe out our history" and "he said, 'Enough." McEnany Scolds Reporters For Asking About Confederate Flag, Not Deadly Weekend Violence. White House Press Secretary Kayleigh McEnany said on Fox News' Hannity that during her press briefing on Monday, she "was asked more than 24 questions about the Confederate flag, not one about" the children who died violently over the Fourth of July weekend. McEnany added that "it just goes to show how out of touch people are here." Wolf: Administration Prepared To Help Governors Deal With Surge In Murders. Appearing on Fox News (7/7, 896K), Acting DHS Secretary Wolf was asked about the federal response to the surge in murders in cities across the US. Wolf said, "I think it's important to note, this really starts with the local police and local law enforcement, state law enforcement, and then the federal law enforcement is there as a third level - backup, if you well. What we have seen is we need to make sure that the state and the local officials are asking for that help." Wolf added, "The President has been very clear, we can provide civil law enforcement support if a governor requests it. The law is pretty clear. That request needs to be made by the governor to the administration. And the President has been pretty clear, we will stop in and we will support." Atlanta Mayor: National Guard Isn't Needed To Quell Ongoing Violence And Murder. The AP (7/7, Brumback, Nadler) reports that on Tuesday, Atlanta Mayor Keisha Lance Bottoms "said...that she doesn't agree with the Georgia governor's order to mobilize the National Guard in her city as a surge in violence became a political talking point." The AP notes that on Monday, Gov. Brian Kemp (R) "declared a state of emergency...and authorized the activation of up to 1,000 Guard troops after a weekend of gun violence in Atlanta left five people dead, including an 8-year-old girl." According to the AP, Bottoms "said Kemp issued his order without asking if the city needed extra help." NYPD Blames Bail Changes And Early Release For June's 130% Surge In Shootings. Reuters (7/7, Mitchell) reports that in New York City, "There were 205 shootings in June, up 130% from the same period a year before, and 39 murders, according to data released by the New York Police Department this week." Reuters says "leaders at the NYPD...blam(e) a wave of police reforms prompted in part by more than a month of protests against police violence." The NYPD's chief of department, Terence Monahan, "attributed the rise in part to bail reform and the compassionate release of some prisoners from Riker's Island, the city's main jail, and criticized a new law that makes it crime for police to use restraints that can hamper someone's breathing." Federalist Analysis: Violence Surges In Democrat-Run Cities Across Country. The Federalist (7/7, Gottschalk, 126K) reports that "since June, shootings and murders have surged across many of the country's major cities. Minneapolis, New York, Philadelphia, Nashville, Chicago, Milwaukee, Indianapolis, Cincinnati, and New Orleans have all seen murders jump over 20 percent this year." The violence, it says, is "heavily concentrated in the last few months, ever since protests have led to nationwide pressure on politicians to 'defund' and 'reimagine' policing." EFTA00150746 Grassley: Senate Would "Probably" Override Trump Veto Of Defense Bill. The Hill (7/7, Carney, 2.98M) reports Sen. Charles Grassley (R-IA) "is warning that Congress would likely override President Trump if he vetoes a mammoth defense policy bill amid the fight over a plan to rename Army bases named after Confederate figures." Grassley, "during a call with Iowa reporters on Monday, said he hoped Trump wouldn't veto the National Defense Authorization Act (NDAA), which is set to pass the Senate later this month, over the base renaming." However, he said that "if it came to overriding a veto, we'd probably override the veto." Park Police Did Not Record Radio Transmissions During Lafayette Square Protest. The Washington Post (7/7, Jackman, 14.2M) reports that "audio of the forceful push led by U.S. Park Police to sweep protesters out of Lafayette Square on June 1, moments before President Trump's visit to St. John's Episcopal Church, was not recorded by the Park Police radio communications system, the agency said Tuesday." House Natural Resources Chairman Raul Grijalva, whose committee is investigating the June 1 incident, said Tuesday that "Trump administration officials ordered the attack on clergy, nonviolent protesters, and working members of the press. For the official audio record of that day to now turn up missing has every appearance of a coverup." Trump Urges Missouri Governor Not To Rename St. Louis. The New York Post (7/7, Nelson, 4.57M) reports President Trump said Tuesday that "he opposes a campaign to rename St. Louis." The President asked Missouri Gov. Mike Parson (R) at a White House event, "You won't be changing the name St. Louis, will you?" Parson replied, "No, we will not be doing that." Said Trump in response, "Thank you. Thank you. That's very important. Thank you very much." Columbus, Ohio Activists Seek To Rename City. The Washington Post (7/7, Hilton, 14.2M) reports that "some activists in Ohio's capital city of Columbus" are seeking to change the city's name. According to the Post, "efforts to change the city's name have persisted for decades," but the conversation "is finally progressing, with the politically conscious city enmeshed in protests for police restructuring and racial justice." Johnson: Intent On Columbus Day Was Mischaracterized. The Federalist (7/7, Justice, 126K) reports Sen. Ron Johnson (R-WI) "pulled back from his proposal" with Sen. James Lankford (R-OK) "last week to yank Columbus Day from the federal holiday calendar in exchange for Juneteenth following conservative outcry." Johnson told The Federalist on Tuesday, "I didn't want to end the celebration of Columbus Day. My entire intent was simply not give federal workers an 11th day off." Minneapolis Neighborhood Seeking To Defund Police Sees Third Sexual Assault In Two Weeks. The Washington Times (7/7, Varney, 492K) reports that a "majority-White Minneapolis neighborhood that has embraced the 'defund the police' movement has now witnessed three sexual assaults in two weeks as hundreds of homeless people have encamped in the neighborhood's sprawling park." WSJoumal Profiles Minneapolis Police Union Chief. Under the front-page headline "Clout Of Minneapolis Police Union Boss Reflects National Trend," the Wall Street Journal (7/7, Al, Belkin, Maher, Paul, Subscription Publication, 7.57M) profiles Robert Kroll, president of the Police Officers' Federation of Minneapolis. The Journal says that like other police union leaders around the country, Kroll has accumulated power and protection for the city's officers. EFTA00150747 Journalist: Nation Has Moved On From Minneapolis Protests. New Jersey journalist Michael Tracey writes in the Wall Street Journal (7/7, Subscription Publication, 7.57M) that the nation's attention has moved on from the riots in Minneapolis, but much of the city is now in ruins and small business owners are suffering as a result. Pressley, Tlaib Unveil Bill To Defund Police, Provide Reparations. The New York Post (7/7, Nelson, 4.57M) reports Reps. Ayanna Pressley (D-MA) and Rashida Tlaib (D-MI) on Tuesday "announced federal legislation to defund police and set up reparations for people who either are black or were harmed by cops." The two lawmakers announced the measure "on a Zoom call," but it "has not yet been introduced." Said Tlaib, "We can start to envision through this bill a new version for public safety - a new vision for public safety, one that protects and affirms Black lives." The AP (7/7, Stafford) reports, "Dubbed the BREATHE Act, the legislation is the culmination of a project led by the policy table of the Movement for Black Lives, a coalition of more than 150 organizations." Omar: "Whole System" Of US Economy Must Be Gutted Due To "Oppression." The Washington Times (7/7, Ernst, 492K) reports Rep. Ilhan Omar (D-MN) "says America is a giant 'system of oppression' needing an immediate 'dismantling' far beyond current calls for criminal justice reform." Omar told constituents Tuesday, "We can't stop at criminal justice reform or policing reform. We are not merely fighting to tear down the systems of oppression in the criminal justice system. We are fighting to tear down systems of oppression that exist in housing, in education, in health care, in employment, (and) in the air we breathe." People Of Color Vow Not To Make Purchases On "Blackout Day." The CBS Evening NewsVi (7/7, story 11, 0:20, O'Donnell, 4.24M) reported on Tuesday, "many people of color are vowing not to buy anything, or if they have to spend money, do it only at Black-owned businesses. It's called #BlackoutDay2020. And it is part of a drive to pressure government and business to address institutional racism and injustice. Every year, Black Americans spend an estimated $1.3 trillion on consumer goods." Kenyans Protesting Police Brutality Met With Tear Gars. The AP (7/7, Odula) reports Kenyan police on Tuesday "fired tear gas and detained protesters demanding an end to police brutality." Roughly "100 people took part in demonstrations across" Nairobi. COUNTER-TERRORISM FBI Informant Testifies To How He Helped Infiltrate "Boogaloo" Group. The Las Vegas Review-Journal (7/7, German, 345K) reports, "An FBI informant told a county grand jury that he secretly wore a body camera and a microphone to record meetings with suspected members of the boogaloo movement as they plotted firebombings and scouted potential targets, transcripts obtained by the Review-Journal show." According to the Review- Journal, "The informant, identified by the pseudonym 'John Smith,' spent two hours on the witness stand June 16 detailing his undercover encounters with the right-wing extremist group as the alleged terror conspiracy unfolded." The Review-Journal adds, "It took the Clark County grand jury just three minutes later that day to deliberate and return an indictment against Andrew Lynam, 23; Stephen Parshall, 36; and William Loomis, 40. All three suspected boogaloo members were indicted on terrorism and explosives charges in an alleged scheme to cause violence at Black Lives Matter protests and firebomb a power substation and a U.S. ranger station near Lake Mead." EFTA00150748 Continuing Coverage: US Soldier Pleads Not Guilty To Planning Attack On His Unit. CNN (7/7, Moghe, Silverman, 83.16M) reports in continuing coverage about former Army private Ethan Melzer, who "pleaded not guilty to charges that he was planning a mass casualty attack on his own unit by sending sensitive information to an extremist group." Prosecutors say Melzer "was planning an attack on his unit by sending sensitive details about his unit's location, movements and security to an extremist group known as Order of the Nine Angels or O9A," whose members "have supported violent, Neo-Nazi, anti-Semitic and Satanic beliefs and have expressed admiration for Nazis including Adolf Hitler and Islamic Jihadists including Osama Bin Laden." He "was indicted in June on charges of conspiracy to murder US nationals, attempted murder of US nationals, conspiracy to murder US service members, attempted murder of US service members, provision and attempted provision of material support to terrorists, and conspiracy to murder and maim in a foreign country." Judge Awards $879M From Iran To Khobar Towers Bombing Victims, Families. The AP (7/7) reports US District Court Chief Judge Beryl Howell last week "ruled,,,that the backers, planners and supporters of the [Khobar Towers) bombing - Iran and its terrorist arm - should pay out $819,120,000 to 14 airmen and 41 of their family members who suffered that day and have been suffering since." Adora Sauer, plaintiffs' lead attorney, said, "Justice has not forgotten these brave US Air Force veterans and their families. It is an honor and privilege to fight for justice and compensation for these families. The passage of over two decades since the Khobar Towers attack has not thwarted our efforts. We will continue to seek to hold the Government of Iran accountable for this terrorist attack as long as is necessary." The airmen in the lawsuit "were awarded between $3 million and $7 million each, based on records from past court decisions and disability ratings along with other legal damages." UN Human Rights Investigator Says US Killing Of Qassem Soleimani Violated International Law. Business Insider (7/7, Bostock, 3.67M) reports the UN's top rights investigator "said the US broke international law by assassinating Iranian general Qassem Soleimani." The UN has now "refuted President Trump's reasoning for the strike." But it is "unlikely to have any ramifications for Trump, as the US is not a member of the UN Human Rights Council, crashing out in 2018 after clashing over Israel, the Congo, and China." Agnes Callamard, UN special rapporteur on extrajudicial, summary or arbitrary execution, on Monday "submitted a report to the UN Human Rights Council in which she concluded that the strike was in violation of article 2(4) of the UN Charter." COUNTER-INTELLIGENCE Pompeo Blasts Susan Rice Over Russia Bounty Criticism. Secretary of State Pompeo was asked in an interview on Fox News' Ingraham Angle (7/6) Monday night about former National Security Adviser Susan Rice's criticism of the Trump Administration over the Russia bounty allegations. Pompeo said Rice "has a history of going on Sunday shows and lying." In 2012, "she went on five Sunday shows" when Americans "had perished on her Administration's watch in Benghazi, Libya," and "made up a story about a video and a protest when she knew full well this was a terror attack. She did so because it was politically convenient to say that." Pompeo added that "it was on the Obama watch, under the Susan Rice watch, under Vice President Biden's watch that Ukraine had one fifth of its real estate taken by Vladimir Putin with virtually no response" and that "Syria was handed over to the Russians as a result of a redline that Obama had drawn in the sand but then refused to enforce." EFTA00150749 CENTCOM Commander Not Convinced Russia Bounties Led To US Military Deaths. The AP (7/7, Baldor) reports that Gen. Frank McKenzie, the head of US Central Command "said Tuesday that the intelligence suggesting that Russia may have paid Taliban militants to kill American troops in Afghanistan was worrisome, but he is not convinced that any bounties resulted in U.S. military deaths." McKenzie "said in a telephone interview with a small group of reporters that the U.S. did not increase force protection measures in Afghanistan as a result of the information, although he asked his intelligence staff to dig into the matter more." While McKenzie said, "I didn't find that there was a causative link there," he "warned...that Russia has long been a threat in Afghanistan, where there have been many reports that it has backed Taliban fighters over the years with resources and weapons." The New York Post (7/7, Bowden, 4.57M) quotes McKenzie as saying, "I sent the intelligence guys back to continue to dig on it, and I believe they're continuing to dig right now, but I just didn't see enough there to tell me that the circuit was closed in that regard." Lawmakers "Poised To Do Little" About Russia Bounties. Politico (7/7, Desiderio, Bertrand, 4.29M) reports that lawmakers "appear poised to do little - if anything - about" Russia paying bounties to kill US troops. Following top secret briefings on the intelligence, lawmakers, who Politico says were "mostly Republicans" stressed "that there was no consensus on whether the GRU, Russia's military intelligence unit, orchestrated the bounties, despite news reports from The New York Times and others that have detailed the alleged scheme with increasing specificity." Sen. Roy Blunt (R-MO) said, "I think there are contradictory pieces of intelligence on this." Duckworth: Trump Didn't Respond To Bounty Allegations Because He Is Incompetent Or Afraid. The Washington Examiner (7/7, Dibble, 448K) reports that in an op-ed for USA Today Tuesday, Sen. Tammy Duckworth (D-IL) "questioned President Trump's military leadership given his response to intelligence that Russia may have been placing bounties on the heads of U.S. troops." In the piece, Duckworth "claimed that Trump did not respond to the intelligence that Russia offered bounties for Taliban fighters to kill U.S. troops because he was either 'incompetent' and did not read his intelligence briefings or afraid to anger Russian leader Vladimir Putin." She wrote, "Neither option absolves him. Both reinforce the grave threat Trump poses to our nation's security. ... Even if one swallows the pill that Trump never knew, it still wouldn't explain his response now that he has been told. ... Trump should be outraged - and we, the American people, should be outraged that he's not." Biden: Trump, Carlson Questioning Duckworth's Patriotism Was "Disgusting," "Sickening." The Washington Examiner (7/7, Larsen, 448K) reports that Joe Biden called comments by Fox News host Tucker Carlson questioning Duckworth's patriotism, a clip of which President Trump tweeted on Tuesday "disgusting" and "sickening." After Duckworth introduced Biden during a virtual fundraiser, he said, "I can't tell you how I felt today when I heard the President of the United States, Donald Trump, questioning your patriotism. ... I found it virtually disgusting, sickening. ... I know you can handle yourself. I said, 'I'm glad I wasn't standing next to him.' You said you can handle yourself. You already have. You've done that. But I just think it's a reflection of the depravity of what's going on in the White House right now." Duckworth responded to Carlson's comments in a tweet Monday night. She wrote, "Does @TuckerCarlson want to walk a mile in my legs and then tell me whether or not I love America?" NYTimes: Russia Bounties Should Not Be Linked To US Troop Withdrawal. In an editorial, the New York Times (7/7, 18.61M) criticizes the Administration's response to the intelligence. However, the Times cites a bipartisan vote by the House Armed Services Committee "for an amendment to the defense bill to make any further withdrawal of American troops from Afghanistan contingent on an assessment of whether any country has offered incentives for the Taliban to attack American and other coalition troops," and says it is EFTA00150750 "unfortunate to connect the issue of possible Russian payoffs with the withdrawal of U.S. troops." DO) Discovers More Material Related To Flynn Investigation. The Washington Examiner (7/7, Dunleavy, 448K) reports that the Justice Department announced Tuesday that it has discovered "further information related to the FBI's investigation of retired Lt. Gen. Michael Flynn, including more notes taken by fired special agent Peter Strzok." Acting US Attorney in Washington, DC Michael Sherwin "said Tuesday that the documents handed over to Flynn's defense team included handwritten notes from Strzok taken at a meeting on Jan. 25, 2017; notes from former Deputy Assistant Attorney General Tashina Gauhar at the same meeting; an internal DOJ document dated Jan. 30, 2017; and handwritten notes from then-acting Attorney General Dana Boente which were dated March 30, 2017. The notes remain sealed by the court." Wyden Writes Third Letter To State Department Seeking Ukraine Documents. The Washington Examiner (7/7, Soellner, 448K) reports Sen. Ron Wyden (D-OR) has written Secretary of State Pompeo a third letter "requesting documents about the Obama and Trump administration's overtures toward Ukraine." In a previous letter Wyden "claimed...that the State Department sent thousands of pages of documents to Republican chairmen for their investigations into former Vice President Joe Biden and his son Hunter while ignoring similar requests from Democrats." In Tuesday's letter, Wyden "claimed that the State Department gave over 9,000 pages of documents to the Senate Finance Committee" at the request of Sen. Charles Grassley (R-IA), according to a report by BuzzFeed News. Wyden "said Mary Elizabeth Taylor denied his previous request before she resigned as assistant secretary of state for legislative affairs in June." The Examiner adds that Wyden is also "seeking other documents related to the activities of President Trump's personal lawyer Rudy Giuliani and others tied to the Ukraine controversy that led to Trump's impeachment." Stone "Begged" Trump For "An Act Of Clemency." CNBC (7/7, Breuninger, Mangan, 3.62M) reports on its website that in a text message to Bloomberg reporters Tuesday, Roger Stone "begged President Donald Trump for either a pardon or a commutation of his 40-month criminal sentence." According to a Bloomberg story, Stone wrote, "I want the president to know that I have exhausted all my legal remedies and that only an act of clemency will provide justice in my case and save my life!" CNBC says the text "came a day after The New York Times reported that Trump is likely to pardon Stone, or otherwise prevent his friend and political ally from having to go to prison by commuting his sentence." New Book Reveals How Mueller Was Briefed About Russia Interference In US Election. The Washington Examiner (7/7, Chaitin, 448K) reports on CNN analyst Jeffrey Toobin's new book, 'True Crimes and Misdemeanors: The Investigation of Donald Trump,' which provides details on how Robert Mueller was briefed about Russia. Former FBI director McCabe "told Mueller, a former FBI director himself, that the meeting would describe the FBI's inquiry, code- named Crossfire Hurricane, but noted there was too much to say in one go." McCabe said, "We will not get through the whole story in this one meeting. It's too long and complicated. We will tell you how we got here." McCabe "told Mueller, who was said to have known very little at this point about the investigation, about the summer theft of emails from the Democratic National Committee and their subsequent publication by WikiLeaks." West Virginia Mother Pleads Guilty To Stealing US Defense Secrets. McClatchy (7/7, 19K) reports a 47-year-old woman is "accused of taking her 6-year-old daughter and top secret government documents to Mexico to try to broker a deal with Russian EFTA00150751 officials." According to Justice Department officials, she didn't have custody of the girl - or permission to take the classified documents." Elizabeth Jo Shirley, of West Virginia, pleaded guilty Monday to charges of 'international parental kidnapping' and taking national defense information." She faces "up to 13 years in federal prison and $500,000 in fines." FBI agent Michael Christman said, "Ms. Shirley had a duty to safeguard classified information. Instead, she chose to break the law and trust placed in her and made plans to pass national defense information to Russian officials, which could have put our citizens at risk." Snowden Faces Possible Sanctions in Suit Over Tell-All Book. Bloomberg (7/7, 4.73M) reports the US "said it will ask a judge to sanction Edward Snowden for failing to turn over evidence in the government's lawsuit over his tell-all memoir, 'Permanent Record,' which was found to illegally disclose classified information." US Magistrate Judge Theresa Buchanan on Monday "extended the government's deadline by two weeks, to July 27, to seek information from Snowden after the US complained of his 'blanket refusal to participate in discovery' related to the book as well as speeches he gave after he exposed US secrets in 2013." Snowden, who was a NSA contractor after leaving the CIA, "was sued in September for failing to submit his book to the agencies for pre-publication review as required under his contracts." Trump Administration Requests Energy Companies Report On Supply Chain Vulnerabilities. NextGov (7/7, Baksh) reports that, "pursuant to a May executive order, the Energy Department's Office of Electricity wants to know what measures the power sector employs to safeguard its supply chain from cyberattacks and its use of equipment from 'foreign adversaries." The executive order "bans the procurement of such equipment and tasks the Energy Secretary with establishing criteria for vendors that would be pre-approved, among other things." The order specifically names "Russia and China as foreign adversaries, noting that the ODNI considers them both near-peer adversaries with advanced cyber programs that threaten US critical infrastructure. Other countries Energy included - for the purposes of the EO - are Iran, North Korea and Venezuela." House Bill Would Call On DNI To Investigate How Beijing Might Exploit COVID-19 Pandemic. Homeland Preparedness News (7/7, Kovaleski) reports US Reps. Max Rose (D-NY), Kendra Horn (D-OK), and Stephanie Murphy (D-FL) "introduced legislation requiring the US government to combat efforts by the Chinese government to exploit the COVID-19 pandemic." The Preventing China from Exploiting COVID-19 Act "requires the DNI to prepare an assessment on how the Chinese government has exploited or could exploit the pandemic to undermine the interests of the US and its allies." Rose, who sits on the House Committee on Homeland Security and is co- chair of the Blue Dog Task Force on National Security, said, "From the opioid epidemic, to trade, to our intellectual property, China has a long history of trying to rip off America. Why should we think the coronavirus pandemic would be any different? It's not a question of if, but how China is going to use this crisis to its advantage - and we need to be working to prevent that." DDNI For Mission Integration Beth Sanner Keynote Speaker At INSA Symposium. ClearanceJobs (7/7, 6K) reports the New IC: Empowering Women & Engaging Men Symposium "is an inspiring event filled with keynotes, engaging TED-talk style ignite rounds, and lively panel discussions with a stacked line-up of all-star speakers within the national security arena." The first keynote speaker "was Beth Sanner, who was appointed the Deputy Director of National Intelligence for Mission Integration in May 2019." For over 30 years, Sanner has "served in a wide range of leadership, staff, policy, and analytic positions in the ODNI, CIA, National Security Council, and State Department." Sanner said, "The beauty of each of us is the uniqueness that EFTA00150752 we all bring...This can be seen as different or it can be the 'extra' perspective that brings something special to the mission." She also "asked the viewers to think about the people in their organizations that they can 'push' - how can they empower those around them to recognize their own strengths and apply for new opportunities." Maj. Gen. Jeffrey Kruse Assigned To Advise DNI On Military Affairs. ExecutiveGov (7/7, Martin) reports Maj. Gen. Jeffrey Kruse of the Air Force "has been assigned to advise the DNI on military affairs." DOD "said Kruse will receive the rank of lieutenant general." Kruse serves as "the director of defense intelligence for warfighter support at the Office of the Undersecretary of Defense for Intelligence and Security." The newly appointed DNI adviser "joined military service in 1991 and went on to fill various intelligence-related roles in the Air Force." NYTimes: Russia Bounties Should Not Be Linked To US Troop Withdrawal. In an editorial the New York Times (7/7, 18.61M) criticizes the Administration's response to the intelligence. However, the Times cites a bipartisan vote by the house Armed Services Committee "for an amendment to the defense bill to make any further withdrawal of American troops from Afghanistan contingent on an assessment of whether any country has offered incentives for the Taliban to attack American and other coalition troops," and says it is "unfortunate to connect the issue of possible Russian payoffs with the withdrawal of US troops." Bolton: Canada Should Not Release Huawei's Meng. The Wall Street Journal (7/7, Subscription Publication, 7.57M) reports former national security adviser John Bolton writes the Administration's request that Canada extradite Huawei CFO Meng Wanzhou to face criminal charges reflects the escalating economic conflict with China. Bolton argues that if Canada lets Meng return to China, it would only embolden Beijing. Uncrackable Code Is Puzzling The CIA. CNN (7/7, 83.16M) reports in a brief video on the Puzzle sculpture at CIA headquarters. Jim Sanborn "created a sculpture containing a secret message." It sits "on the grounds of CIA headquarters in Langley, Virginia." Yet no one "has been able to solve it." Code breakers "from around the world have tried for 30 years." The artist "meets with people like cryptologist Elonka Dunin who are desperate to solve the mystery at his Maryland studio every year or so." But Sanborn "won't divulge any clues." It's too much fun "keeping everyone guessing." CRIMINAL INVESTIGATIONS New York Regulators Fine Deutsche Bank For Epstein Ties. ABC World News TonightVi (7/7, story 6, 0:25, Muir, 7.1M) reported, "News tonight on the Jeffrey Epstein investigation. Deutsche Bank will now pay $150 million in penalties to New York state for doing business with Jeffrey Epstein, despite what the state calls red flags. The bank processed hundreds of transactions totaling millions of dollars for Epstein, even after his sex crimes conviction and allegations that he ran a sex trafficking operation. The bank is expressing regret tonight for its relationship with Epstein." The Washington Times (7/7, Mordock, 492K) reports, "New York state financial regulators fined Deutsche Bank $150 million Tuesday for 'significant compliance failures' in its dealings with accused pedophile sex-trafficker Jeffrey Epstein. It is the first penalty levied against a financial institution for ties to the billionaire, a registered sex offender who died in jail last summer but whose lecherous legacy continues to unravel." According to the Times, "The New York State Department of Financial Services said that "mistakes and sloppiness" allowed Epstein to conduct hundreds of transactions totaling millions of dollars that should have triggered extra EFTA00150753 scrutiny. Regulators described Epstein's transactions as 'suspicious' and accused Deutsche Bank of failing to properly monitor account activity by a registered sex offender 'despite ample information that was publicly available' about his earlier wrongdoing." Epstein "became a Deutsche Bank client in 2013, five years after he pleaded guilty in Florida to soliciting a prostitute who was a minor and registering as a sex offender." ABC News (7/7, Thorbecke, Katersky, 2.97M) reports, "Deutsche Bank responded to the news, saying the settlement reflects its 'unreserved and transparent cooperation with our regulator."It also shows how important it is for us to continue enhancing our anti-financial crime capabilities,' the bank said in a statement posted to its Twitter. 'We have invested almost $1bn in improving our training, controls and operational processes, and have increased our AFC team to more than 1,500 people. Our transformation continues." Epstein Associate Allegedly Has "Secret" Video Footage Of Prince Andrew. The New York Post (7/7, Feuerherd, 4.57M) reports, "Accused Jeffrey Epstein accomplice Ghislaine Maxwell allegedly has secret video footage of Britain's Prince Andrew - and she may be willing to share it with prosecutors, a distant relative of the prince claimed in an interview published Tuesday." The Post adds, "Christina Oxenberg, who said she's a former friend of Maxwell and Epstein, told The Sun that Maxwell previously boasted to her about procuring girls for the multi- millionaire and explained how they would secretly record their acquaintances. Prince Andrew, the Queen's son, was allegedly one of Maxwell and Epstein's friends who came under the covert surveillance, according to the report. 'He is one of many Johns, all of whom were video-taped by Ghislaine,' Oxenberg claimed to The Sun. 'He is not a victim here, but Ghislaine was never his friend, she was taping him,' she added. 'Friends don't tape friends." Maxwell Reportedly Hires "El Chapo" Prosecutors As Defense Attorney. The New York Post (7/7, Brown, 4.57M) reports, "Ghislaine Maxwell has hired the former prosecutor who helped bring down drug kingpin Joaquin 'El Chapo' Guzman to try to get her off child sex- trafficking charges." According to the Post, "Recent court filings for the 58-year-old British media heiress show that she is being repped by Christian Everdell, who spent more than a decade as an assistant US attorney for the Southern District of New York. Everdell's bio notes how he and his team were awarded a 'True American Hero Award' by the Federal Drug Agent Foundation for 'their work in the investigation and apprehension of the former head of the Sinaloa drug cartel in Mexico ('Chapo' Guzman)." The Post adds, "Former colleagues believe he may use his experience in such high-profile cases to get Maxwell to turn on others allegedly in Epstein's inner circle to strike a deal." Deadly Police Shooting Of Phoenix Man Sparks Protests. NBC Nightly NewsVi (7/7, story 7, 1:50, Holt, 6.14M) reported on "the growing outrage in Phoenix after officers shot and killed a man in a parked car, the latest incident sparking protests over police tactics." NBC (Gutierrez) added, "The tense confrontation captured on a bystander's cell phone camera on the Fourth of July. Officers shouting into a parked car, then firing a barrage of bullets." Police say Garcia pointed a gun "at an officer," but "the department has only released this body camera footage from an officer who arrived after the shooting." The AP (7/7) reports, "The Phoenix Police chief is asking the FBI to investigate a man's shooting death at the hands of officers. Chief Jeri Williams announced Tuesday that she is requesting the agency conduct an independent probe to see if 28-year-old James 'Jay' Garcia's civil rights were violated during the July 4 shooting." The AP adds, "Authorities say officers were called to a home Saturday afternoon in Phoenix's Maryvale neighborhood about a suspect in an attempted stabbing targeting the victim again. Officers spoke with Garcia, who was sitting in a parked car on the driveway. Police say officers commanded Garcia to exit the vehicle. He instead allegedly rolled up the window and brandished a handgun. Police say he told an officer to shoot him. When he refused to lower the weapon, an officer broke a window as a distraction. Two other officers then opened fire." EFTA00150754 The Arizona Republic (7/7, Garcia, 869K) reports, "Williams also said the Police Department will release on-body camera footage within 10 to 14 days of a police shooting, a change from the 45-day wait, a policy she had put in place last year. Williams' statement said that the Police Department will still conduct an administrative review of the case and also a criminal investigation. Commonly, after the investigation is complete, it will be forwarded to the Maricopa County Attorney's Office, which will decide if any charges should be filed against the two officers who shot Garcia." KPNX-TV Phoenix (7/7, 101K) also reports. FBI Probing Racist Incident In Indiana. The CBS Evening NewsVi (7/7, story 6, 2:00, O'Donnell, 4.24M) reported that "the FBI is investigating a caught on camera confrontation as a possible hate crime. Vauhxx Booker, who is black, says he was assaulted and threatened with a noose as he walked with friends last weekend." CBS (Duncan) added, "36-year-old Vauhxx Booker says he feared for his life after a group of white men penned him against a tree and assaulted him. It happened in Bloomington, Indiana, while he and his friends were planning to spend fourth of July at Lake Monroe." Vauhxx Booker, Victim: "They say that they are going to break my arms, as one of them literally had my arm twisted behind me." Duncan: "Booker says one of the men threatened to kill him." Booker: "One of them said to the other one, get a noose, not get a rope, but literally get a noose." Duncan: "Bystanders videotaped the incident. Once Booker was let go, his attackers hurled more racial insults at him." ABC World News TonightVi (7/7, story 5, 1:50, Muir, 7.1M) reported, "Booker says he and his friend, who's white, were headed to the public beach, when he says the men accused him of trespassing on private property. Booker says he tried to calmly talk to them, but was assaulted." Booker: "I'm struggling to breathe, I can feel the weight of these gentlemen on top of me." ABC (Perez) added, "Booker says what saved him was that his friends and bystanders refused to leave. The county prosecutor saying she's waiting for investigators to turn the case in for review, but tonight, we've learned the FBI is opening a hate crime investigation." Continuing Coverage: Georgia Man Sentenced For Child Pornography. WAOK-AM Atlanta (7/7, 16K) reports Brian Robert Ackerman, who "pleaded guilty to transportation of child pornography," was "sentenced [Tuesday] to eight years in prison." He "came to law enforcement's attention following a report to the Orange County Sheriff's Office and an illicit chat conversation with an undercover FBI agent, during which Ackerman condoned and encouraged the undercover FBI agent to sexually abuse his purported 9-year-old daughter." New Mexico Man Charged In Connection To Navajo Nation Murder. The Albuquerque (NM) Journal (7/7, 196K) reports Blaine Morgan "was arrested on Monday and charged with murder" in connection to the March 29 murder in Navajo Nation. FBI spokesman Frank Fisher revealed the arrest, but he "did not identify the man who was killed." Pennsylvania White Supremacist Sentenced For Methamphetamine Trafficking. The Allentown (PA) Morning Call (7/7, Hall, 555K) reports Aryan Strike Force member Joshua Steever "was sentenced Tuesday after pleading guilty to charges he sold meth and gun parts to fund" the group. FBI Searching For Wanted North Carolina Man. WECT-TV Wilmington, NC (7/7, 43K) reports that the FBI and North Carolina police "are still searching for [Tyshon Lamont Clifton]," who is "wanted in connection with a drug trafficking bust in Horry County, SC." Clifton "is one of three suspects still on the run" after the June 30 raid in Horry County. WMBF-TV Myrtle Beach (SC) Myrtle Beach, SC (7/7, 79K) also reports. EFTA00150755 Continuing Coverage: FBI Investigating Colorado Bank Robberies. KCNC-TV Denver (7/7, 91K) reports that the FBI and the Aurora Police Department "are searching for a man who robbed 3 different banks" in Colorado. The suspect is known as the "Double Dipper Bandit." Rhode Island Man Charged With Drug Trafficking. The Providence (RI) Journal (7/7, 259K) reports Franklin Carlos Soto, who "was deported to the Dominican Republic in 2015 after illegally entering the country two years earlier," was arrested again on charges of "illegally reentering the United States and trafficking fentanyl." The Rhode Island FBI Safe Street Task Force "arrested Soto on Thursday." GoLocalProv (RI) (7/7, Fenton) also reports. Illinois Man Charged In Connection To US Marshal Homicide. WIFR-TV Rockford, IL (7/7, 40K) reports Floyd E. Brown, who "was originally charged with one count of killing a federal law enforcement officer and two counts of illegal firearm possession," has six new charges following deliberations by a federal grand jury. Special Deputy U.S. Marshal Jacob Keltner "was killed on March 7, 2019." FBI Supporting Search Efforts For Missing Massachusetts Man. The North Andover (MA) Eagle Tribune (7/7, Bill Kirk bkirk@, eagletribune.com, 78K) reports that FBI agents are "scouring property near the intersection of Milk and Pleasant Valley streets looking for a body" of an unidentified man. FBI Chelsea spokesperson Kim Setera "confirmed Tuesday that the FBI's Evidence Response Team was on scene, conducting an ongoing investigation." Oklahoma Residents Sentenced For Witness Tampering. The Muskogee (OK) Phoenix (7/7, 23K) reports that four Muskogee residents "have been sentenced in federal court for tampering with a witness or conspiring to tamper with a witness." Derrick Christopher Segue "was sentenced to 65 months," Klawaun Lynell Sutton "was sentenced to 80 months," Jasmine Dazha McCoy "was sentenced to four years of probation," and Alison Rachel Morgan "was sentenced to five years of probation." Prosecutors said Segue and Sutton "conspired to intimidate and did intimidate a fellow inmate," who they believed to have "had provided information to the Muskogee Police Department." Texas Woman Charged With Sexually Exploiting Teen Family Member. The Lubbock (TX) Avalanche-Journal (7/7, Monte, 118K) reports, "A 33-year-old Lubbock woman was arrested in late June and faces federal child pornography charges in connection with an investigation into a complaint that she sexually exploited a 13-year-old family member for months." Jessica Wheeler "was arrested June 25 and faces a count of receipt and distribution of child pornography. Her charges stem from a June 16 Lubbock police investigation after a family member reported finding images of the girl's genitals two days earlier in Facebook messages between Wheeler and her husband, Edward Wheeler, who was living in Kentucky, according to a federal complaint." Edward Wheeler "was also arrested on June 25 in Kentucky, court records state. He also faces a federal count of receipt and distribution of child pornography. The family member also found messages between the couple in which they reportedly discussed giving the girl a sexual enhancement drug and sexual acts that needed to be performed on her, the complaint states." FINANCIAL CRIME & CORPORATE SCANDALS Former Los Angeles Councilman Pleads Guilty In Corruption Probe. EFTA00150756 The AP (7/7) reports, "Former Los Angeles City Councilman Mitchell Englander pleaded guilty Tuesday to a federal charge for lying to the FBI about receiving gifts and money from a businessman, including envelopes stuffed with $15,000 in cash." The AP adds, "Under a March plea deal, Englander pleaded guilty to a federal charge of scheming to falsify material facts while six other charges were dropped. He could face up to five years in prison when he is sentenced in September but prosecutors agreed to seek only three years or less. `I accept full responsibility for my conduct,' Englander said in a statement later issued by his attorneys, and added: `I look forward to continuing to contribute to my community and helping others." Englander "acknowledged receiving $10,000 and other expensive gifts during a Las Vegas trip with city staffers and others in 2017, during which the businessman sent an escort to his room. Englander also acknowledged taking another envelope with $5,000 during a later trip to the Palm Springs area." The Los Angeles Times (7/7, Reyes, 4.64M) reports, "Englander struck a plea deal nearly four months ago, acknowledging that he accepted cash in envelopes, hotel stays and other gifts during trips to Las Vegas and the Palm Springs area - and then engaged in an effort to lie to investigators. He pleaded guilty to one count of scheming to falsify material facts." The Times adds, "In his plea agreement, Englander admitted lying to FBI agents about the gifts he had received from a businessman. He also admitted to advising that businessman, who was looking to sell home technology and high-end cabinets, to mislead and lie to FBI investigators." The Los Angeles Daily News (7/7, Chou, 232K) reports, "Englander, who has served as a reserve officer with the Los Angeles Police Department and sat on the City Council's planning committee, faces a maximum sentence of five years in prison, a three-year supervised release and fines. His sentencing hearing is scheduled for September, but the judge said Tuesday he could allow that to be delayed." Also reporting on the plea are KTLA-TV Los Angeles (7/7, Quednow, 766K), Courthouse News (7/7, Solis, 2K), KTTV-TV Los Angeles (7/7, 24K), and KCAL-TV Los Angeles (7/7). Virginia Man Indicted For Federal Wire Fraud. Fox News (7/7, Ruiz, 27.59M) reports Surveillance Equipment Group CEO Arthur Morgan, who "allegedly sold Chinese-made body armor to the American military and federal agencies," was indicted Monday on federal wire fraud charges. He is "accused of selling more than $650,000 worth of Chinese ballistic vests, helmets and other protective gear to the U.S. government between 2014 and 2019." Government contractors "are supposed to follow strict guidelines about where their inventory is manufactured, and China is not on the list of approved countries of origin." CYBER DIVISION Federal Prosecutors Unseal 2018 Indictment Charging Kazakh Man In Hacks. The AP (7/7) reports from Seattle, "Two weeks after a cyber-security firm released the identity of an alleged hacker from Kazakhstan, federal authorities in Seattle on Tuesday unsealed a 2018 indictment charging the man with an array of computer crimes." Andrey Turchin, "known in hacking circles as `fxmsp,' and his accomplices ran a prolific hacking ring that attacked hundreds of victims, including government agencies, schools, banks and luxury hotel chains on six continents, the indictment said. Turchin, 37, is believed to be in Kazakhstan; prosecutors had kept the indictment sealed to avoid tipping him off that he was being sought," but "in a motion to unseal the charges, the U.S. Attorney's Office in Seattle wrote that they now believe Turchin knows about the criminal investigation and, given the security firm's public identification of him, there was little reason to keep the indictment sealed." Pompeo: Administration May Ban Chinese Apps, Including TikTok. EFTA00150757 The CBS Evening NewsVI (7/7, story 9, 0:20, O'Donnell, 4.24M) reported that the "US government is looking at banning TikTok, the popular social media app. Secretary of State Mike Pompeo claims users of Tiktok and other China-based apps are unwittingly handing over personal data to the Chinese Communist Party." Reuters (7/7) reports that in an appearance on Laura Ingraham's Fox News show Monday night, Pompeo "said...the United States is 'certainly looking at' banning Chinese social media apps, including TikTok, suggesting it shared information with the Chinese government." Pompeo is quoted as saying, "I don't want to get out in front of the President, but it's something we're looking at." Pompeo added that Americans shouldn't download TikTok unless "you want your private information in the hands of the Chinese Communist Party." The Washington Times (7/7, Wolfgang, 492K) says "Pompeo cast TikTok alongside Chinese technology giants Huawei and ZTE in warning that Americans' data from the app could easily fall into the hands of Communist Party leaders." Said Pompeo, "We are taking this very seriously, and we are certainly looking at it." On Fox News The Ingraham Angle (7/6), Pompeo said "what the Obama-Biden Administration did with respect to China, it cow-towed, it appeased, turned the other cheek and it left America in a weaker position as a direct result of that failure to lead." CNBC (7/7, Kharpal, 3.62M) reports Pompeo also said, "Whether it was the problems of having Huawei technology in your infrastructure we've gone all over the world and we're making real progress getting that out. We declared ZTE a danger to American national security. ... With respect to Chinese apps on peoples' cellphones, the United States will get this one right too." According to CNBC, TikTok "has tried to distance itself from its Chinese parent company," ByteDance, and "hired former Disney executive, Kevin Mayer, to be" its CEO earlier this year. Vice President Pence said on Fox News' Special Report (7/7, 1.53M), "No one has been tougher on China than President Donald Trump. From very early on, this President stood strong to reset an imbalanced trading relationship that previous administrations allowed to develop in a way that when we took office, half of our international trade deficit was with China. The President stood strong." Pence added that "whether it be the stand on Huawei or what we are currently considering with TikTok, this President also made it clear that we are going to preserve the national security interests of the United States of America from being compromised by the Chinese Communist Party." NBC News (7/7, 6.14M) reports that "following Pompeo's interview, a TikTok spokesperson denied the company was influenced by China." In a statement, the company said, "TikTok is led by an American CEO, with hundreds of employees and key leaders across safety, security, product and public policy here in the US." Pompeo said in an interview with Washington WatchP (7/7) (interview begins at 2:59), "When you stare at General Secretary Xi's actions and just lay them down against the most fundamental human rights, the most unalienable rights that we know each of us has because we are made in the image of God, there is an enormous mismatch. ... We know what Communist regimes do. We know the way authoritarian regimes treat their people all too often and that is what we are seeing in China today." Politico (7/7, Forgey, 4.29M) reports Sens. Josh Hawley (R-MO) and Rick Scott (R-FL) "introduced legislation in March that would prohibit federal employees from using TikTok on government-issued work phones." Politico adds that in May, "more than a dozen Democrats on the powerful House Energy and Commerce Committee joined calls for the Federal Trade Commission to investigate the app for alleged Children's Online Privacy Protection Act violations." CNN (7/7, Disis, Hansler, 83.16M), meanwhile, noted that last week, India "said it would ban TikTok and other well-known Chinese apps because they pose a 'threat to sovereignty and integrity." O'Brien, Kudlow Warn Against Chinese Investment, Citing Risk Of Further Sanctions. The New York Times (7/7, Swanson, 18.61M) reports, "White House officials on EFTA00150758 Tuesday warned a federally administered retirement plan for railroad workers against investing in Chinese companies and said that additional sanctions could be on the way in return for China's role in spreading the coronavirus." National Security Adviser O'Brien and director of the National Economic Council, Larry Kudlow, told the U.S. Railroad Retirement Board in a letter that its investments in China were exposing retirees to "unnecessary economic risk" and channeling funds into companies "that raise significant national security and humanitarian concerns." The officials also said it was "a time of mounting uncertainty" over China's relations with the rest of the world that presented "the possibility of future sanctions or boycotts that may arise from a wide range of issues, including the culpable actions of the Chinese government with respect to the global spread of the Covid-19 pandemic, the suppression of Hong Kong's democracy." TikTock To Pull Out Of Hong Kong. The Wall Street Journal (7/7, Lin, Xiao, Subscription Publication, 7.57M) reports TikTok said it would pull out of Hong Kong within a week in light of "recent developments." The announcement came after Facebook, Twitter and Google announced changes Monday to their operations in the city. Hong Kong Preparing New Restrictions On Internet Use. The New York Times (7/7, Mozur, 18.61M) reports that "as Hong Kong grapples with a draconian new security law, the tiny territory is emerging as the front line in a global fight between the United States and China over censorship, surveillance and the future of the internet." The Hong Kong government is believed to be "crafting web controls to appease the most prolific censor on the planet, the Chinese Communist Party. And the changes threaten to further inflame tensions between China and the United States, in which technology itself has become a means by which the two economic superpowers seek to spread influence and undercut each other." The AP (7/7, Soo, Kurtenbach) reports that on Tuesday, Hong Kong executive Carrie Lam "offered scant reassurance...over a new national security law that critics say undermines liberties and legal protections promised when China took control of the former British colony." The Wall Street Journal (7/7, Subscription Publication, 7.57M) editorializes that the new security law should serve as warning that China's ambitions lie outside its borders. US Demands China Release Professor Who Has Criticized Xi. Reuters (7/7, Pamuk) reports that on Tuesday, State Department spokeswoman Morgan Ortagus said the Administration is "deeply concerned" about China's detention of Xu Zhangrun, a law professor who has been "an outspoken critic of the ruling Communist Party, and urged Beijing to release him." Ortagus tweeted, "We are deeply concerned by the PRC's detention of Professor Xu Zhangrun for criticizing Chinese leaders amid tightening ideological controls on university campuses in China. The PRC must release Xu and uphold its international commitments to respect freedom of expression." A Washington Post (7/7, 14.2M) editorial says Xu's arrest "vividly demonstrated the intolerant and autocratic rule of President Xi Jinping." Bolton: Canada Should Not Release Huawei's Meng. Former national security adviser John Bolton writes in the Wall Street Journal (7/7, Subscription Publication, 7.57M) that the Administration's request that Canada extradite Huawei CFO Meng Wanzhou to face criminal charges reflects the escalating economic conflict with China. Bolton argues that if Canada lets Meng return to China, it would only embolden Beijing. Judge Criticizes Federal Prosecutors In Trial Of Alleged Russian Hacker. Law360 (7/7, Albarazi, Subscription Publication, 8K) reports, "U.S. District Judge William Alsup criticized a prosecutor Tuesday for presenting 'obviously prejudicial' jailhouse phone records instead of 'real evidence' against a Russian national on trial in California for allegedly hacking into LinkedIn and Dropbox, saying, 'You may end up losing this case because of stunts like that." Judge Alsup "slammed Assistant U.S. Attorney Michelle Kane Tuesday for introducing into evidence jailhouse phone records in which defendant Yevgeniy Nikulin asks acquaintances to help him gain access to magazines about high-tech news, computers, women, cars and bikes EFTA00150759 while in custody awaiting his trial. Judge Alsup told the California federal jury, which reassembled Monday after a months-long hiatus caused by the Covid-19 pandemic, not to infer guilt from the prosecutor's reference to prison. `You've got to rely on the real evidence, if there is any; Judge Alsup told the jury." Nikulin, "who is in his early 30s and a resident of Moscow, has been in custody since 2016, shortly after a federal grand jury indicted him on charges that he used stolen identities to break into databases owned by LinkedIn Corp., Dropbox Inc. and the now-defunct social media questionnaire company Formspring Inc. in 2012." Courthouse News (7/7, Dinzeo, 2K) also reports. Huawei Official Says US Pressure On Brazil Threatens Long Delays In 5G Rollout. Reuters (7/7, Mello) reports a Huawei executive "warned that Brazil could suffer years of delay in deploying a 5G telecoms network and higher costs if it succumbs to mounting US pressure to snub the Chinese equipment supplier." His remarks come "as the Trump Administration steps up efforts to limit Huawei's role in rolling out high-speed, fifth-generation technology in Latin America's largest economy." Brazil's far-right President Jair Bolsonaro "said last month that 5G deployment would have to meet national sovereignty, information and data security requirements." A longtime China skeptic, Bolsonaro "has adopted a less abrasive stance toward Beijing since taking office in 2019, although he remains a close Trump ally." Marcelo Motta, Huawei's director of cybersecurity and solutions, "said in an interview late on Monday that curtailing Huawei's role `will only delay 5G deployment in Brazil and ultimately impact prices for carriers, regional internet service providers and customers." Internal Documents Show US Restrictions Moved Deutsche Telekom And Huawei To Work Together. Politico (7/7, Cerulus, 4.29M) reports documents reviewed by POLITICO show "Deutsche Telekom strengthened its strategic partnership with Huawei last year despite growing defiance toward the dominant Chinese 5G vendor." The internal company records "describe how Deutsche Telekom and Huawei agreed on a deal in mid-2019 that said the Chinese supplier would take measures to avoid supply chain disruption caused by US measures, as well as cover the costs of potential damages and delays." The deal was reached shortly "before the US Administration imposed restrictions on businesses dealing with the Chinese firm in May 2019." It laid the groundwork "for a partnership between the two companies for the early rollout of 5G networks in Europe, despite national lawmakers' efforts in key markets like Germany, the Netherlands and Poland to reduce the use of Chinese equipment." Op-Ed: Why Britain Is Moving Against Huawei. In an op-ed in the Washington Examiner (7/7, 448K), Tom Rogan writes, "The UK will further restrict and even block China's Huawei telecommunications firm...from building out its 5G network. A government minister Monday confirmed that GCHQ, Britain's equivalent of the NSA, has delivered a new report on Huawei's viability as a security-compatible 5G vendor." He contends, "But it's ultimately not GCHQ's new report that prompted Britain's about-face here. ... What we're actually seeing here is Johnson's altered consideration of whether Britain can balance good relations with China with its other priority foreign policy interests. The Conservative Party leader had, until recently, believed that balancing act was possible." He concludes, "Britain's policy isn't quite yet at Trump Administration levels of China-skepticism. Yet. A new British sanctions regime introduced this week has targeted human rights violators from Russia to Saudi Arabia, but notably absent was China." Microsoft Secretly Seized Domains Used In COVID-19-Themed Email Cyberattacks. TechCrunch (7/7, Whittaker, 605K) reports a court has "granted a bid by Microsoft to seize and take control of malicious web domains used in a large-scale cyberattack targeting victims in 62 countries with spoofed emails in an effort to defraud unsuspecting businesses." The technology giant "announced the takedown of the business email compromise operation in a Tuesday blog post." ZDNet (7/7, Cimpanu, 299K) reports that, according to court documents obtained by ZDNet, Microsoft "has targeted a phishing group that has been targeting the company's EFTA00150760 customers since December 2019." The phishers operated by "sending emails to companies that hosted email servers and enterprise infrastructure on Microsoft's Office 365 cloud service." The emails were spoofed "to look like they came from fellow employees or a trusted business partner." This particular phishing operation "was unique because attackers didn't redirect users to phishing sites that mimicked the Office 365 login page." Business Insider (7/7, Holmes, 3.67M) reports Microsoft successfully "shut down the servers of scammers who targeted millions of people throughout 62 companies with emails that appeared to look like Microsoft Office 365 alerts - and many of which posed as COVID-19 related." To shut down the scam operation, Microsoft "used an unorthodox tactic that's becoming increasingly common in cybersecurity - it pursued a civil action against the scammers, getting permission from a judge to secretly seize their domains." CISA Funding Bill Receives Large Boost In Spending Bill. Politico Morning Cybersecurity (7/7, Starks, 4.24M) reports the House Appropriations Homeland Security Subcommittee "will mark up the fiscal 2021 Homeland Security spending bill, and it's slated to give a sizable boost to CISA." According to the committee summary, the agency would "get $2.25 billion, which amounts to $497 million more than the Trump Administration sought and $237 million above the fiscal 2020 figure." Of that total, $11.6 million "would go toward creating a Joint Cyber Center for National Cyber Defense." Massive Vulnerability Uncovered In Popular Networking Device. Government Computer News (7/7, Johnson) reports a particularly dangerous vulnerability "has been uncovered in F5's BIG-IP networking devices produced by F5, impacting enterprise networks across the globe." According to F5, "the remote code execution vulnerability exists in the traffic management user interface of the company's BIG-IP networking devices, allowing unauthenticated attackers to launch RCE attacks, including creating or deleting files, disabling services and issuing other arbitrary system commands." The vulnerability was "rated 'critical' and given a 10/10, the highest possible severity score, by the Common Vulnerability Scoring System." A patch was "quickly developed, but information security professionals say the attack is simple to carry out and organizations may have already missed their opportunity to avoid exploitation." Cyber Command Receiving New Version Of Its Training Platform This Fall. Defense News (7/7, Pomerleau, 21K) reports program officials "said US Cyber Command's new training platform is slated to deliver the second iteration this fall providing additional capabilities and user capacity." The Persistent Cyber Training Environment (PCTE) is "an online client that allows Cyber Command's warriors to log on from anywhere in the world to conduct individual or collective cyber training as well as mission rehearsal." The program is being "run by the Army on behalf of the joint cyber force and Cyber Command." Officials delivered the "first version of the program to Cyber Command in February and the environment was used for the first time in Cyber Command's premier annual tier 1 exercise Cyber Flag in June." The second version is "expected to include additional capabilities, including allowing more users to conduct team or individual training." INTERNATIONAL RELATIONS FBI Reportedly To Travel To Ireland In Probe Of Missing American Woman. Irish Central (7/7, 51K) reports, "A law enforcement team, including a lawyer and FBI agent, will travel to Ireland to try and solve the mystery of the 1993 disappearance of Long Island, New York native, Annie McCarrick." IC adds, "In 1993, the American tourist was last seen taking a bus to Enniskerry, County Wicklow. Her father, John, spent years trying to find out what EFTA00150761 happened to his daughter. He died in 2009 without finding any answers." According to IC, "New leads have come to light following an article in the Irish Independent earlier this week which stated that investigators would be taking 'one last roll of the dice' in attempting to solve the missing person's case." LAWFUL ACCESS Cybersecurity Groups Unite In Defending Encryption. In the "Cybersecurity 202" blog for the Washington Post (7/7, 14.2M) , Joseph Marks writes, "Cybersecurity and privacy advocates are rallying to defend strong encryption, which is facing its harshest assault in decades from the Trump administration and Congress." Marks adds, "A coalition of dozens of top cybersecurity and Internet freedom groups, academics and experts sent a blistering letter this morning to the sponsors of an anti-encryption Senate bill they say would make hundreds of millions of Americans more vulnerable to hacking." According to Marks, "The bill, called the Lawful Access to Encrypted Data Act, is the harshest among a number of efforts to weaken encryption across the Justice Department and Congress. It would effectively require tech companies to weaken access to their secure systems to ensure law enforcement with a warrant can track terrorists, sexual predators and other criminals. But that would also make it far easier for cybercriminals and adversary nations to hack into troves of government, financial and health records, the authors write." OTHER FBI NEWS House Democrats Propose Increased DOJ Funding, More Money For Policing Overhauls. The Washington Times (7/7, Mordock, Murioz, 492K) reports, "Democrats bucked growing calls to defund the police in their Justice Department spending bill that was unveiled Tuesday, instead investing nearly $600 million to help local police departments implement changes to their training and policies." According to the Times, "The funds are aimed at providing more resources for things like training, community relations and investigations, but are also held as leverage to curb controversial policing policies. The proposed spending bill for the 2021 fiscal year, which begins in October, would add $972.5 million to the Justice Department's coffers. Of those funds, $596.7 million would go toward police practice overhauls. The remaining funds would be used to boost the FBI's investigations into cybercrime, cyberthreats and human trafficking as well expanding the Bureau of Alcohol, Tobacco, Firearms and Explosives' ballistics database to reduce violent gun crimes." DO3: Probe Of FBI's Handling Of Nassar Case Is Ongoing. The Orange County (CA) Register (7/7, Reid, 546K) reports, "The U.S. Department of Justice is continuing to investigate the Federal Bureau of Investigation's handling of sexual abuse allegations against former U.S. Olympic and USA Gymnastics team physician Larry Nassar, according to department's inspector general." According to the OCR, "Michael E. Horowitz, the inspector, in a letter to Sen. John Cornyn (R-Texas) stated that the Justice Department Office of the Inspector General's 22-month investigation 'of the allegations concerning the FBI's handling of the Nassar investigation is ongoing, and we are working diligently to complete it." The OCR adds, "Between August and October 2018, Office of the Inspector General investigators and FBI agents from local field offices interviewed Olympic champions Aly Raisman, McKayla Maroney and Jordyn Wieber, and Maggie Nichols, a 2015 World champion, and their parents about the FBI's investigation of Nassar, according to interviews and documents obtained by the Southern California News Group." EFTA00150762 FBI Warns Tennessee Residents About Scam Involving FBI Caller ID. WZTV-TV Nashville, TN (7/7, Shelton, 150K) reports that the FBI "has seen a recent increase in phone calls that spoof the FBI Nashville Resident Agency's phone number," and its agents "say it's all part of a Social Security scam." The agency "says these calls are fake and that any legitimate officer will not demand cash or gift cards from a member of the public." FBI Physical Fitness App Profiled. Men's Health (7/7, 13.49M) profiles the official FBI Physical Fitness Test application, which has been "released to regular civilians worldwide." The app "allows users to unleash their inner crime-fighting agent by providing an insight into the physical demands of agent life." OTHER WASHINGTON NEWS Trump Says COVID Death Rate "Down Tenfold" As Confirmed US Cases Top 3M. President Trump tweeted Tuesday morning, "COVID-19 (China Virus) Death Rate PLUNGES From Peak In U.S.' A Tenfold Decrease In Mortality. The Washington Times @WashTimes Valerie Richardson. We have the lowest Mortality Rate in the World. The Fake News should be reporting these most important of facts, but they don't!" Later Tuesday, Trump tweeted, "Death Rate from Coronavirus is down tenfold!" Breitbart (7/7, Mora, 673K) reports coronavirus-linked deaths "continued on a downward trend as of Monday afternoon, even after the country hit historic levels in the number of new confirmed cases late last week, a Breitbart News analysis of the seven-day average of fatalities showed." Vice President Pence said on Fox News' Special Report (7/7, 1.53M), "From the very beginning, President Trump has made it clear that we are going to support our governors, we are going to support local health officials in taking the steps that they deem most appropriate." On CNNVi (7/7, 901K) Tuesday morning, Director of Trade and Manufacturing Policy Navarro said, "In the first wave of the pandemic, this President immediately locked down the economy. And most of what we saw was happening in New York, New Jersey, Detroit, New Orleans, and some of our major cities in hot zones. ... And I think what is going on now is that as we have opened up the economy, these other areas are experiencing more of a first wave than a second wave." However, The Hill (7/7, Hellmann, 2.98M) reports NIAID Director Fauci "warned Tuesday the U.S. should not fall into 'false complacency' because COVID-19 death rates have dropped, noting the virus can cause other severe health outcomes." Fauci said, "It's a false narrative to take comfort in a lower rate of death." Surgeon General Adams said on Hearst TelevisionVi (7/7, 32K), "We are in a better place now...(but] that is by no means declaring mission accomplished. We should be concerned about cases going up, but cases shouldn't have to equal consequences." The New York Times (7/7, 18.61M) reports White House coronavirus response coordinator Deborah Birx said Tuesday, "None of us really anticipated the amount of community spread that began in really our 18-to-35-year-old age group." Bloomberg (7/7, 4.73M) reports Birx "praised governors who have mandated masks in their states despite [Trump's) resistance to them." Birx is quoted as saying, "I want to really applaud the governors who've taken decisive action to really mandate masks, increase social distancing, close bars." Birx told Gray TelevisionVi (7/7, 75K), "I wear a mask in all circumstances no matter where I am." All three broadcast networks led their Tuesday evening newscasts with coronavirus coverage. Lester Holt said in opening NBC Nightly NewsVi (7/7, lead story, 3:10, 6.14M), "Tonight, we stand at the edge of another jaw dropping milestone: three million confirmed cases of COVID-19 in this country - Texas topping 10,000 cases today alone, and virtually every sign tonight points to a virus wildly out of control." NBC's Miguel Almaguer said, "In just the first week of July, a staggering new record number of infections: more than 380,000 cases EFTA00150763 of the coronavirus." On ABC World News TonightVi (7/7, lead story, 5:15, 7.1M), David Muir said, "More than 131,000 lives have now been lost and tonight, a new model" projects the US death toll "could rise above 200,000 by November. ... Florida reporting a staggering 7,300 new cases in just the past 24 hours." The Pentagon is "sending medical and support personnel to hard-hit San Antonio; Arizona meanwhile reporting more than 3,600 new cases." Norah O'Donnell said on the CBS Evening NewsVi (7/7, lead story, 4:05, 4.24M), "In what feels like a flashback to the early days of the pandemic, intensive care units in more than 50 Florida hospitals are now full. ... And with those long lines for testing growing even longer, the Trump Administration now says it is opening short-term test sites in three hard hit Southern cities hoping to screen 15,000 people a day." On NBC Nightly NewsVi (7/7, story 3, 2:50, Holt, 6.14M), Stephanie Gosk said, "In early April, 100,000 people a day were being tested. Today it's roughly 600,000. But it doesn't entirely explain how quickly the case numbers are going up." The Washington Post (7/7, Partlow, 14.2M) reports Trump "pitted America against the world on Tuesday, moving to pull the United States out of the World Health Organization" as the virus' "rampage across the South and West continued to drive up hospitalizations, with patients filling intensive care units and federal health officials moving to shore up testing in hot spots." Federal Government To Pay $1.6B For Rush Vaccine Development. The CBS Evening NewsVi (7/7, story 3, 1:40, O'Donnell, 4.24M) reported, "Maryland biotech company Novavax is in the hunt for a coronavirus vaccine, and getting a major dose of funding from the government's Operation Warp Speed program." The New York limes (7/7, Thomas, 18.61M) reports that the federal government will pay Novavax $1.6 billion "to expedite the development of a coronavirus vaccine." According to the Times, "It's the largest deal to date from Operation Warp Speed, the sprawling federal effort to make coronavirus vaccines and treatments available to the American public as quickly as possible." The Times says "the deal would pay for Novavax to produce 100 million doses of its new vaccine by the beginning of next year - if the vaccine is shown to be effective in clinical trials." CNN (7/7, Cohen, Bonifield, 83.16M) reports on its website that Novavax CEO/President Stanley Erck "said Novavax's vacc