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tv   Election Interference from Shell Companies Virtual Currency  CSPAN  June 28, 2018 6:37am-7:47am EDT

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other group spending without ever disclosing the source.
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and nondisclosing profit groups. it is littered with illegal donations. they have have public trust. they may well require that. they unleashed a flood of secret money. to meddle in elections more serious. much larger range of sources.
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and institutions. they're much more important. it has led to much less transparency. it would be foolish to think the same types of outside sources that fought to undermine the integrity. would not be interested in more confident than their abilities to favor their own interest today. in 2012. they begin break in the tax forms. they do not had to disclose if they were there. nonprofit donors if it have any. one roadblock in the research.
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they later found listed as a disregarded entity. we pieced together the network to show that these nonprofits tied closely to a network of wealthy donors had used this as use this as a further obstacle to transparency. we would not had been able to track any other money coming into the nonprofits to give a more recent example it's notable that there still a one million-dollar contribution. it's essentially anonymous. the llc that made the contribution was formed just four months before it made at the seven the seven-figure donation to the inauguration.
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and the only name on the document appeared to be a paralegal at a law firm. the sources of money and politics and the many paths that money can take are now numerous and frequently unknown and unknowable. given that anonymous money now flows into the campaign finance. that is a point about dark money it keeps all of us in the dark. uncertain who is paying for the elections. friend or foe to the form of democratic self-government. taking steps to ensure transparency is not a partisan issue but foundational to american sovereignty. i'm happy to answer any questions.
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who's giving the money and what money is it is a challenge here. we can pass laws to make it more obvious to the public how the corporation gets its money. that's what were trying to do here. when it comes to the money itself. is something that is sort of new to me. how easy would it be for foreign entity government to funnel virtual money into a shell corporation if russia never cooperated with us. do you need russia and china to make this work. >> note chairman you do not
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need russia or china to make this work. it is a sizable vulnerability in our regime that they anonymous come companies. not just for campaign finance but for general financial purposes. and it undermines the sanctions. is that right. can you cover opus. to use the systems whether it is to funnel money from one individual to another. the aspect that's interesting is the degree to which web
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money that existed in russia and i was actually at a hearing in the conference six or seven years ago. the fsb was participating. they went on to describe how web money was considered by them to be the primary money movement globally. suddenly it's almost a de facto part of their core financial system.
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almost a shadow economy. there has been embraced by the russian government and the banks. what can we do about a system that does that. it's very difficult to do much about it. directly. they're not going to cooperate. however, what you can do is what i described my in my testimony which is focused on identity focus on exchange points. you probably own a significant bit coin investment.
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if he were to buy it in the u.s. chances are you would use a very reputable company called client base. they do very strong know your customer vetting. they are not the problem. however there are like exchanges like them around the world. that don't require any type of that. some sort of international cooperation i proposed that through a non- for profit you can create an approach where there's those that want to be there.
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do you think the european union would sign it for this pretty quickly. this is a problem they take very seriously. i think it's important to know. it serves u.s. customers extends beyond our borders. they are subject to the bank secrecy act. it's got gone that jurisdiction from congress. there is someone under arrest right now for running a virtual currency exchange that did not adhere to the bank security act.
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thank you to all of the witnesses when i was a boy. there is a cancer on the presidency. it is dark money. i'm adamant that we need to clean that up with past disclosure recommendation. we are trying to focus on not just eliminating dirty special interest influence but at least eliminate several years back. as we were on the floor.
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a story emerged in the news about corporation that have been set up at another place. given $5 million. close up shop to the state nobody knows who's $5 million was they got into the election. what we do know is behind that darkness could be a foreigner. until we had cleaned that up we believe organ have a real problem on our hands.
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one is the one that is in the subcommittee that is bipartisan that would make it a felony to have facilitated that. it's off to prove it. at least he would be on notice that is not just a black mark on his characters. that is one thing that we are looking at. over and finance we would actually be requiring that individual to certify that whoever gave that $5 million was a foreign influence.
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people who play in this game can easily's spec the shell corporation. if it gets too smelly don't take the money. it would be a powerful confirmation. i appreciate your very simple recommendation. it is a direction the world is going. we should not be a likert as a city on the hill but we are. tell me about the size and industry.
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just general sense of scale. >> thank you. it's a massive industry. not entirely up to no good but there is a lot of no good sitting there. the entities created in north korea. someone had to settle those up. you will see shell companies all over the world. it's a very big industry if you want to hide money somewhere in the world. a lot of options for you to do that with a very big industry is very capable of using that.
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the people who create them may not know who they and what there can be used for. it's really one of the issues here. with your permission. they create the possibility of providing an anonymous means of payment to people who are hackers are trolls who are engaged in election influence in manipulation in the united states into try to hide that connection. because the money connection is harder to prove. would it be also possible for the crypto currency to be used to facilitate that.
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you can't put a bit coin into a federal account. you have an all over the world. they exchange one form of virtual currency to another. it will be impossible to track. thank you chairman chairman graham.
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it's another important hearing of the subcommittee. i want to commend senator whitehouse for the good work. and your brand testimony you note how anonymous companies are the most critical. proposal is the most direct entity. it was put simply. it bans the problem. it's a direct attack on the vulnerability. it would do more than any other single proposal.
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three senior trump campaign officials. why is it important for them to be working on that. coming from the government and not having been in government too long ago. i know one of the concerns is always lack of candor.
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you can take steps submitted gate that risk. the indictment of 13 russian individuals on three companies. he sold bank account numbers to russians involved in this plat. how console console and bank accounts be used to allow foreign nationals be allowed to use that in our elections. >> still and bank accounts are one more layer very simple and the additional note just makes
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it that much more difficult to follow the money. senator whitehouse and i in august of 2016 sent a letter to the dead chairman oversight subcommittee. expressing our grave concern a grave concern regarding potential foreign interference in our elections. that candidate trump what open that. we ask for an oversight hearing. do you believe our existing laws are sufficient to protect that. >> no i don't. i think there are structural gaps. i've covered in my written testimony. there also gaps in the criminal statutes i think the
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legislation mentioned during his introduction would be an important step to improving the transparency and really shoring up their system. the new york times just last month reported on august 2016 meeting that donald trump junior held in trump tower. a crown prince. according to the report they proposed a multimillion dollar social media plan. they did not provide any information about this during his judiciary committee overview. i have asked the chairman to call to testify about this. as late as june 2018 we are still learning about disclosed meetings. what it be lawful for a
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foreign government or foreign national to provide services to support a u.s. presidential campaign. i'm an election lawyer or a lawyer at all. i should probably try not to practice law without a license. i would point back to your comments made we are lacking in interest about the conflicts of interest. that could imperil harder to produce sovereignty. it seems at the very least unwise. thank you for that careful answer. i ensure you she is careful
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she is from the state of minnesota. thank you for being here. my first question is just a very focused one when i started my morning today. when we are talking about russia and what he thought would happen. in 2020. i just wonder if you agree with director coates who director coates who testified under oath here. we expect that russia will be bolder and more disruptive in their cyber operations during the next year. do you believe you're going to see continued attempts at foreign interference. that is a judgment on the
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intelligence committee. i think we can see those at work. they were pretty happy with the outcome. it's not necessarily about pushing an election in a particular way. i campaign can be successful merely if it is the discord. i think the russians know that their system is a flawed and it will never be as good as ours. the only way they could catch up you do a lot of studying to track money and politics.
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i was a supreme court's decision in citizens united that upheld disclosure by a vote of eight-one that it was there to guarantee its implementation. i think it was unfortunate and now it falls to our regulatory bodies how would you assess the job that congress is doing because of the seriousness of the discussion today. and it's important for the health of our democracy i regret that it is not speedy enough to protect us from foreign interference.
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i think they never stopped noticing. it has been a bit of a two step forward one step back chase to fill up the gaps in the ability to undermine the system. we've got some money out first the election. what concerns me is that one you had raised some of the topics that have been hidden and we have a bill on using a verified credit card and things like that. it's a big concern for me.
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i will ask you that mr. murray. we have nearly half of all homes in the u.s. that are used with shell companies. someone came up to me afterwards and said they were concerned. would you agree with that without answering in depth. we should be concerned about that. i think there are better methods my last question i want to ask you because you raised this. we know in addition to the 21 states getting as far in illinois we know they hacked into one presidential campaign.
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we're learning more and more. they also played around and that republican primary which i think is really important for our colleagues with the really a really big front row seat. they were messing around and that as well. it just shows it's not out one party versus the other. as you go into this next year with $1.4 billion being spent online on political ads. in the projected three to $4 billion in 2020. we have to change the rules of the road for social media. they are putting up at the ads the ads now and an archive. those companies had now come around to support the honest ad act. why is that important to have some national rules of the road in place. they are needed for this. i actually worked with the
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republican presidential primaries back in the 80s. it was hard. there were a lot of rules of the road. note seems like many of those rules have eroded or become irrelevant. they actually need to extend for their because of the degree of the campaign. through other types of influence operations that are meant to find our divisions. to inflame passions. just like they pointed too originally. they persist and they become all the more relevant and evident. i think it has to get down to identity. we are to be able to identify the people that are fanning
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these flames. i think you will need to identify the advertisers that are buying these ads. as well as they have some kind of way to identify those who are fanning those flames. there are a lot of levers that are being played in american society right now and it's been done and that is what needs to have some mechanism and it should always be there for people who want to use it. there has to be consequences. thank you to both of you for doing this hearing. as one ask if you wrap up questions. i think basin are conversation
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the answer to all of these questions from all of the witnesses is going to be yes but i don't want to take anything for granted. do you all agree that there is a national security dimension to this problem. do you all agree that they in a new many is a channel for mischief by bad actors. do you all agree that foreign entities are ready, willing and able to use those channels to accomplish their message. do you conclude from that that gives us in congress a responsibility to try to bring a remedy to this problem. that about does it.
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we begin with a review of some of the expert understanding i would say of the russian foreign influence playbook. we have considered the csi s kremlin playbook report. and we have seen that groups across the ideological spectrum for the center for american progress for the huts didn't institute. they have all flagged this as a really important national security problem. i think having brought attention to it. were not able to have a recommendation. to be doing things about it. to deter a little bit the misconduct in the upcoming election. i appreciate very much how
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they have led the subcommittee. i think this is a real progress and i appreciate it very much. you've obviously done your homework. it seems to me that we need that. with that in mind we will try to up our game. the hearing is adjourned. [inaudible conversations]
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friday a conversation with the chief justice of the united states. john roberts. live friday at 3:30 p.m. eastern on c-span. or listen on the free app. supreme court justice announced that he is retiring. effective at the end of july. the 81-year-old candidate said he's stepping down after more than 30 years on the court. a republican report -- appointee. without him the court will be split between four liberal justices who were appointed by liberal presidents. at the night circuit judicial conference and 2016 anthony
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kennedy talked about the importance of his ruling on every case as a member of the supreme court. >> obviously the supreme court has to deal with issues that have a profound impact on individuals in on society. you are the last word on those issues when you issue that decision. he played a critical role in many many of those important decisions. does that ever wait on you when you wrestle with having to make a decision like that. mimic any judge in this room knows the decisions away on you. the fascination about being a judge is the same as the duty of being a judge. and that is ask yourself why
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am about to rule the way i'm about to rule. you must always ask yourself that question. you can't get through life without making certain assumptions. the law and in jetting. we must have the reason that is propelling the decision. you must then put that into a form of words. then you must ask if it is logical or fair does it go with precedent. does it accord with common sense. my own ethics and sense of value. not my personal values but those values that all of us must follow zero if they're going to do the duty. you must always ask yourself
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this question. to keep an open mind and always ask yourself. what it is. it goes to your oath. both the responsibility and privilege of being a judge. why is it. why they can make decisions with respect to the visions of social justice. sometimes it's said that it meant that. that's true.
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but over time over history. it's important that the majority except those decisions as correct. it happens because we give reasons for what we do and we write an opinion we try to compel allegiance an agreement with what we have done. and over time it seems to me that most of the decisions of the supreme court had found acceptance in the bench into the bar and what's the most important in the american people. this is not a position i sought. we said we did not want to go to washington. he was a rather insistent man.
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it was necessary for me to accept. we were pleased to fulfill the role that the constitution gives us. he was confirmed on february 3, 1988. and he was sort and as an associate justice two weeks later. here is what we are covering thursday on the c-span network. 9:00 a.m. eastern live coverage of the u.s. house begins. they are expected to begin work on the defense spending bill. live coverage of the senate as they work on the farm bill. and on c-span three and 9:30 9:30 christopher ray and deputy maternal general testify at a house judiciary committee on fbi and justice department actions.
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the c-span bus is traveling across the country on our 50 capitals to her. the bus stop in fairbanks alaska asking folks what is the most important issue in alaska. i was born and raised in fairbanks alaska. i knew the most important issue to me is the walls that are society seems to be bringing up. we are finding it hard to embrace our differences and that's a good thing. and that's creating great divide and greater conflicts than we really need at the moment. we should be focusing our
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problem-solving skills on more important not how we are different because it's our differences that make us great we are falling behind. is not simply the case. and it's important to me for the federal government to make that policy. i am a dentist here in fairbank. i've been here since 1976. i came appear from michigan where i went to school at the university of michigan. dental health is of course a very important issue here. whether it's in the cities where there is no access to care facility.
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they have volunteered. created thousands of people free of charge the private sector of course the biggest burden. a lot of the treatment here. and the government facilities and public health offers a great treatment out in the bush areas where there is no private practice. i encourage everybody to remember their dental hygiene. in the most important issue for me. is our political divide. i was made and moderate republican. i worry about the future of
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our country. and what we have is conflict nothing really gets sent in our political parties. i would like to see some changes. i also worry about the worldwide standings. i think historically we've been looked at as problem solvers. i think that's changing. and now for the better. those are my issues. watch alaska weekend on c-span. the former nfl player terry
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crews told lawmakers his history of being a sexual assault victim and now a survivor. mister cruz appeared before the senate judiciary committee. examining that in the bill of rights act of 2016. president obama signed the bill in october and witnesses also included rape victim who helped offer the act. in the deputy director of the national institute of justice. this is an hour and 35 minutes. welcome everybody. thank you for joining us at a very important hearing. this morning our committee will focus on an issue of in norma's importance


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