The reality makers

This story involves a Tulare, California, hospital that was driven into bankruptcy by its administrator who was himself making boatloads of money. A local group trying to save the hospital decided to run someone against one of the administrator's enablers on the hospital board. The administrator, in turn, sought help from a DC law firm.

The recall was a clear threat to Benzeevi’s hospital-management business, and he consulted a law firm in Washington, D.C., about mounting a campaign to save Kumar’s seat. An adviser there referred him to Psy-Group, an Israeli private intelligence company. Psy-Group’s slogan was “Shape Reality,” and its techniques included the use of elaborate false identities to manipulate its targets. Psy-Group was part of a new wave of private intelligence firms that recruited from the ranks of Israel’s secret services—self-described “private Mossads.” The most aggressive of these firms seemed willing to do just about anything for their clients.

Psy-Group stood out from many of its rivals because it didn’t just gather intelligence; it specialized in covertly spreading messages to influence what people believed and how they behaved. [...] “Social media allows you to reach virtually anyone and to play with their minds,” Uzi Shaya, a former senior Israeli intelligence officer, said. “You can do whatever you want. You can be whoever you want. It’s a place where wars are fought, elections are won, and terror is promoted. There are no regulations. It is a no man’s land.”

[...]

No election was too small. One company document reported that Psy-Group’s influence services cost, on average, just three hundred and fifty thousand dollars—as little as two hundred and seventy-five dollars an hour. [...] No election was too small. One company document reported that Psy-Group’s influence services cost, on average, just three hundred and fifty thousand dollars—as little as two hundred and seventy-five dollars an hour.

[...]

In New York, Psy-Group mounted a campaign on behalf of wealthy Jewish-American donors to embarrass and intimidate activists on American college campuses who support a movement to put economic pressure on Israel because of its treatment of the Palestinians.

[...]

[F]ew countries produce more highly trained and war-tested intelligence professionals, as a proportion of the population, than Israel.

[...]

Spies, private investigators, criminals, and even some journalists have long used false identities to trick people into providing information, a practice known as pretexting. The Internet made pretexting easier.

[...]

One of the boldest [private intel/psy-ops groups], Black Cube, openly advertised its ties to Israeli spy agencies, including Mossad and Unit 8200, the military’s signals-intelligence corps. Black Cube got its start with the help of Vincent Tchenguiz, an Iranian-born English real-estate tycoon. [...] In March, 2011, Tchenguiz was arrested by a British anti-fraud unit investigating his business dealings. (The office later dropped the investigation and paid him a settlement.) He asked Meir Dagan, who had just stepped down as the director of Mossad, how he could draw on the expertise of former intelligence officers to look into the business rivals he believed had alerted authorities. Dagan’s message to Tchenguiz, a former colleague of Dagan’s said, was: I can find a personal Mossad for you. (Dagan died in 2016.) Tchenguiz became Black Cube’s first significant client.

[...]

Russia’s intelligence services had begun using a variety of tools—including hacking, cyber weapons, online aliases, and Web sites that spread fake news—to conduct information warfare and to sow discord in neighboring countries. In the late two-thousands, the Russians targeted Estonia and Georgia. In 2014, they hit Ukraine. Later that year, [Israel Defense Forces intelligence officer named Royi] Burstien founded Psy-Group, which, like Black Cube, used [social media] avatars to conduct intelligence-collection operations. But Burstien also offered his avatars for another purpose: influence campaigns, similar to those mounted by Russia.

[...]

Tulare seemed an unlikely target for an influence campaign.

[...]

Today, the city is home to just over sixty thousand people.

[...]

Citizens for Hospital Accountability began as a simple Facebook page. At first, the group’s leaders hoped that Alex Gutiérrez would run for Kumar’s seat, but he was planning to stand for a position on the city council. Senovia [Guitiérrez, Alex's mother] was the backup choice.

[...]

Hospital-board races are usually small-time affairs. One former member of the Tulare board said that her campaign had cost just a hundred and fifty dollars, which she used to buy signs and cards that she handed out door-to-door. In the recall, which had been set for July 11, 2017, voter turnout was expected to be fewer than fifteen hundred people. Still, Alex decided to take a break from college and serve as his mother’s campaign manager. He suspected that the race would be bitterly contested, and expensive.

[...]

Tulare County is largely Republican; Trump won it with fifty-three per cent of the vote in 2016, and the district’s representative in the House, Devin Nunes, has spearheaded efforts to counter the Russia investigation. But the hospital board was a crossover issue.

[...]

While Alex and Senovia were soliciting small donations from neighbors, [hospital manager Yorai] Benzeevi got on a plane to Israel to meet with Psy-Group.

[...]

Psy-Group went to great lengths to disguise its activities. Employees were occasionally instructed to go to libraries or Internet cafés, where they could use so-called “white” computers, which could not be traced back to the firm. They created dummy Gmail accounts, often employed for one assignment and then discarded. For particularly sensitive operations, Psy-Group created fake front companies and avatars who purported to work there, and then hired real outside contractors who weren’t told that they were doing the bidding of Psy-Group’s clients. Psy-Group operatives sometimes paid the local contractors in cash.

In one meeting [...] before a parliamentary election in a European country, his operatives had created a sham think tank. Using avatars, the operatives hired local analysts to work for the think tank, which then disseminated reports to bolster the political campaign of the company’s client and to undermine the reputations of his rivals. In another meeting, Psy-Group officials said that they had created an avatar to help a corporate client win regulatory approval in Europe. Over time, the avatar became so well established in the industry that he was quoted in mainstream press reports and even by European parliamentarians.

[...]

Most Psy-Group employees knew little or nothing about the company’s owner, Joel Zamel. According to corporate documents filed in Cyprus, he was born in Australia in 1986. Zamel later moved to Israel, where he earned a master’s degree in government, diplomacy, and strategy, with a specialization in counterterrorism and homeland security. [...] He cultivated relationships with high-profile Republicans in the U.S., including Newt Gingrich and Elliott Abrams, who served in foreign-policy positions under Ronald Reagan and George W. Bush, and whom Psy-Group listed as a member of its advisory board.

  New Yorker

Good old Elliott Abrams.

[An Israel Defense Forces intelligence officer Royi Burstein, who was hired by another psy-ops company, Aviran,] sent representatives to pitch State Department officials on an influence campaign [...] that would “interrupt the radicalization and recruitment chain.” The State Department never acted on the proposal.

Probably because they already have their own psy-ops influence program running.

Psy-Group had more success pitching an operation, code-named Project Butterfly, to wealthy Jewish-American donors. The operation targeted what Psy-Group described as “anti-Israel” activists on American college campuses who supported the Boycott, Divestment, Sanctions movement, known as B.D.S.

[...]

In early meetings with donors, in New York, Burstien said that the key to mounting an effective anti-B.D.S. campaign was to make it look as though Israel, and the Jewish-American community, had nothing to do with the effort. The goal of Butterfly, according to a 2017 company document, was to “destabilize and disrupt anti-Israel movements from within.”

[...]

Project Butterfly launched in February, 2016, and Psy-Group asked donors for $2.5 million for operations in 2017. Supporters were told that they were “investing in Israel’s future.” In some cases, a former company employee said, donors asked Psy-Group to target B.D.S. activists at universities where their sons and daughters studied.

[...]

A former company employee said that Benzeevi “appeared to like the idea that someone from Mossad would be on his side.” Before Benzeevi flew back to California, he was given the number of a bank account where he could wire Psy-Group the fee for the Tulare campaign—two hundred and thirty thousand dollars. On May 8th, [...the] project was set in motion, and its code name was changed from Mockingjay to Katniss, a reference to Katniss Everdeen, the protagonist in the “Hunger Games” novels.

[...]

In June of 2017, strange things began happening in Tulare. A series of ominous Web sites appeared: Tularespeaks.com, Tulareleaks.com, and Draintulareswamp.com. The sites directed visitors to articles that smeared Senovia Gutiérrez and her allies in the hospital-board fight.

[...]

The domain names appeared to be playing off themes from the 2016 Presidential campaign. [...] Along with the Web sites, online personae, who claimed to be local residents but whom nobody in town recognized, began posting comments on social media. Some of the messages suggested that Senovia took bribes. Others pointed to her Mexican background and her accent and questioned whether she was an American citizen.

[...]

Early on the evening of June 9th, a woman with short blond hair knocked on Senovia’s front door, and told Senovia’s adult son Richard, who answered, that she was a supporter of his mother’s campaign. The woman handed Richard an envelope that read “To: Mrs. Sanovia,” misspelling her name. Richard noticed that a man was standing across the street, next to a Yukon Denali S.U.V., taking photographs with a telephoto lens. Later that night, the S.U.V. returned to Senovia’s street, and the man took more photographs.

Some of the photographs soon appeared on Draintulareswamp.com, under the title “Who Is Pulling Senovia’s Strings?” [...] The photographs seemed designed to make it appear as if Senovia had taken a bribe.

[...]

Deanne Martin-Soares, one of the founders of Citizens for Hospital Accountability, said. “We couldn’t trace anything. We didn’t know where it was coming from.”

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On June 15th, campaign flyers ridiculing Senovia for having “zero experience,” and directing residents who “want proof” to visit Tularespeaks.com, appeared on door handles around town. The small businessman who printed and distributed the flyers said that he had been paid in cash by a stranger who used the name Francesco Manoletti, which appears to be a made-up persona.

[...]

“It didn’t really hurt Senovia,” [a California campaign veteran named Michael] McKinney said. “It made it look like she was being harassed. It hurt Kumar. It backfired.”

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On the eve of the election, Alex’s house burned down and he lost almost everything, including his final batch of campaign flyers. He suspected that the blaze could have been election-related, but local fire-department officials said that they saw no evidence of foul play.

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Burstien hoped that Psy-Group’s work in Tulare would help the company land other small campaigns, but that proved overly optimistic. He told colleagues that he was close to finalizing several deals, but the new clients fell through, and, in February, 2018, Burstien found that he couldn’t make payroll.

Psy-Group’s financial woes coincided with sudden scrutiny from the F.B.I.

[...]

Psy-Group’s larger ambition was to break into the U.S. election market. During the 2016 Presidential race, the company pitched members of Donald Trump’s campaign team on its ability to influence the results. Psy-Group’s owner, Joel Zamel, even asked Newt Gingrich, the former House Speaker, to offer Zamel’s services to Jared Kushner, Trump’s son-in-law. The effort to drum up business included brash claims about the company’s skills in online deception. The posturing was intended to attract clients—but it also attracted the attention of the F.B.I. Robert Mueller.

[...]

The Bureau had taken an interest in George Nader for helping to organize a secretive meeting in the Seychelles ahead of Trump’s Inauguration, with the aim of creating an unofficial channel with Vladimir Putin.In January, 2018, F.B.I. agents stopped Nader, an American citizen, at Dulles International Airport and served him with a grand-jury subpoena. Nader agreed to coöperate, and told F.B.I. agents about his various dealings related to the Trump campaign, including his discussions with Zamel. (Nader has been granted immunity in exchange for testifying truthfully.)

[...]

The following month, F.B.I. agents served Zamel with a grand-jury subpoena. Agents also tracked down Burstien in the San Francisco area, where he was on a business trip. [...] The F.B.I. also visited Psy-Group’s so-called D.C. office, at the WeWork, and seized a laptop computer that had been hidden in a desk drawer, where it had been running continuously.

[...]

Psy-Group officials referred the F.B.I. to the letters they had received from law firms, attesting to the legality of their activities and telling the company that it didn’t need to register as a foreign agent. “The F.B.I. seemed genuinely surprised that this shit wasn’t illegal,” a former Psy-Group employee said.

[...]

Early in 2016, a Republican consultant with ties to the Israeli government put Psy-Group in touch with Rick Gates, a senior Trump campaign official. [...] In the proposal, dubbed Project Rome, which was first reported on by the Times, last October, Psy-Group used code names for the candidates: Trump was Lion, and Hillary Clinton was Forest. Psy-Group also hired the Washington law firm Covington & Burling to conduct a legal review of its work. Former Psy-Group officials said that the resulting memo gave a green light to begin offering the company’s services in the U.S.

[...]

In early May, 2016, Zamel sent an e-mail to Gingrich, saying that he could provide the Trump campaign with powerful tools that would use social media to advance Trump’s chances. Zamel suggested a meeting in Washington to discuss the matter further. Gingrich forwarded the e-mail to Jared Kushner and asked if the campaign would be interested. Kushner checked with others on the campaign, including Brad Parscale, who ran Web operations. According to a person familiar with the exchange, Parscale told Kushner that they didn’t need Zamel’s help. (A 2016 campaign official said, “We didn’t use their services.”)

Also that spring, Zamel was introduced to George Nader, a Lebanese-American with ties to the Emirati leader Mohammed bin Zayed and other powerful figures in the Gulf.

[...]

In June, 2016, Nader was attending an international economic forum in St. Petersburg, Russia, when Zamel approached him and requested a meeting. According to a representative for Nader, Zamel told Nader that he was trying to raise money for a social-media campaign in support of Trump; he thought that Nader’s Gulf contacts might be interested in contributing financially. Nader listened to Zamel’s pitch but didn’t make any commitments, according to the Nader representative. (Zamel’s representatives denied that he spoke to Nader in St. Petersburg about trying to help Trump.)

Zamel had another opportunity to pitch his services in early August, 2016, when Erik Prince, the founder of the Blackwater security firm, helped arrange a meeting at Trump Tower among Zamel, Nader, and Donald Trump, Jr.

[...]

Burstien said that his talks with the Trump campaign went nowhere; a representative for Zamel denied that his client engaged in any activity having to do with the election. But, according to the Nader representative, shortly after the election Zamel bragged to Nader that he had conducted a secret campaign that had been influential in Trump’s victory.

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A representative for Zamel denied that he told Nader that he or any of his operatives had intervened to help Trump during the 2016 election. If Nader came away with that impression, the representative said, he was mistaken.

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U.S. leaders were generally skeptical about the effectiveness of these kinds of operations.

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Russian military and intelligence agencies, on the other hand, didn’t see information warfare as a sideshow. They invested in cyber weapons capable of paralyzing critical infrastructure, from utilities to banks, and refined the use of fake personae and fake news to fuel political and ethnic discord abroad.

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The 2016 election changed the calculus. In the U.S., investigators pieced together how Russian operatives had carried out a scheme to promote their preferred candidate and to stoke divisions within U.S. society. Senior Israeli officials, like their American counterparts, had been dubious about the effectiveness of influence campaigns. Russia’s operation in the U.S. convinced Tamir Pardo, the former Mossad director, and others in Israel that they, too, had misjudged the threat. “It was the biggest Russian win ever. Without shooting one bullet, American society was torn apart,” Pardo said. “This is a weapon. We should find a way to control it, because it’s a ticking bomb. Otherwise, democracy is in trouble.”

[...]

In early 2017, as Trump took office, interest in Psy-Group’s services seemed to increase. Law firms, one former employee said, asked Psy-Group to “come back in and tell us again what you are doing, because we see this ability to affect decisions that we weren’t fully aware of.” Another former Psy-Group employee put it more bluntly: “The Trump campaign won this way. If the fucking President is doing it, why not us?”

To capitalize on this newfound interest, Burstien started making the rounds in Washington with a new PowerPoint presentation. [...] Titled “Donald Trump’s 2016 Presidential Campaign—Analysis,” the presentation outlined the role of Web sites, avatars, and bots in influencing the outcome of the election. In one case highlighted in the slide deck, pro-Trump avatars joined a Facebook page for Bernie Sanders supporters and then flooded it with links to anti-Hillary Clinton articles from Web sites that posted fake news, creating a hostile environment for real members of the group. “Bernie supporters had left our page in droves, depressed and disgusted by the venom,” the group’s administrator was quoted as saying. As part of the presentation, Burstien pointed out that Russian operatives had been caught meddling in the U.S.; Psy-Group, he told clients, was “more careful.”

Psy-Group’s post-election push into the U.S. market included a cocktail reception [part of Psy-Group’s campaign to shape perceptions about itself] on March 1, 2017. [...] The next day, an article in Politico briefly mentioned the gathering and described Psy-Group as a multinational company with “offices in London, Hong Kong and Cyprus.” There was no mention of Israel; Burstien thought it would be better for business to play down the Israel angle.

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According to a former company official, Zamel decided to shut down Psy-Group in February, 2018, just as Mueller’s team began questioning employees. But its demise hasn’t suppressed the appetite for many of the services it provided. Some of Psy-Group’s former employees have met with Black Cube to discuss job opportunities. [...] Uzi Arad, a Mossad veteran and a former national-security adviser for Netanyahu, said that he was ashamed to see some of his former colleagues become “mercenaries for hire,” adding, “It’s highly immoral, and they should know it.”

[...]

Ram Ben-Barak, who helped woo Benzeevi on behalf of Psy-Group, said that he decided to leave the company after he learned about the extent of its operations in Tulare, which he objected to. Ben-Barak said that he regrets his decision to work with the firm. “When you leave the government and you leave Mossad, you don’t know how the real world works,” he said. “I made a mistake.” Ben-Barak, who is now running for a seat in Israel’s parliament, said that he believes new regulations are needed to stem the proliferation of avatars and misinformation. “This is the challenge of our time,” he said. “Everything is fake. It’s unbelievable.”

Believe it.

As for the Tulare hospital scam...

The hospital-board election resulted in a landslide—but not for Psy-Group’s client. There were more than a thousand ballots cast, and only a hundred and ninety-five people voted for Kumar to keep his seat. Senovia Gutiérrez won with seventy-five per cent of the vote.

[...]

After Senovia’s victory, Benzeevi’s contract was rescinded. [...] The hospital was more than thirty-six million dollars in debt, and had to close for nearly a year. (It reopened in October, 2018.)

The president of the United States is running his own psy-ops scam. Let's hope the electorate in 2020 is as wise as the citizens of Tulare.

...but hey, do what you want...you will anyway.

Paranoid, dangerous and easily duped

Trump's own mysterious "Steele Dossier" has been leaked.

Sometimes when you hear people in the Trump administration, or congressional Republicans, or conservative media, muttering about “deep state” conspiracies against Trump or whole agencies planting dirt on POTUS while thwarting his will, it’s hard to know if they believe this stuff or are simply putting one over on credulous MAGA people who will believe anything about Trump’s many enemies.

But Adam Entous and Ronan Farrow of The New Yorker have published a report suggesting that at least within the Trump White House, believe in outlandish conspiracy theories has been widespread.

[...]

And there were earlier reports that “Trump aides” or people in Trump’s circle had hired an Israeli firm — which Ronan Farrow identified as Black Cube — to get dirt on [Obama aides Ben] Rhodes and [Colin] Kahl in connection with Trump’s goal of reversing the Iran deal.

It seems that perhaps the Trump people and/or their Black Cube friends were not only taken in by but blew up to fantastic proportions Rhodes’s own boasts about manipulating journalists during the Iran fight in a famous 2016 New York Times Magazine profile of the foreign policy staffer, which aroused widespread derision at the time. Apparently Black Cube believed it all, or wanted its client or clients to believe it

  New York Magazine

Following are exerpts from the New Yorker article.

In early 2017, some of Donald Trump’s advisers concluded that they faced a sophisticated threat responsible for “coordinated attacks” on the new Administration. They circulated a memo, titled “The Echo Chamber,” which read like a U.S. military-intelligence officer’s analysis of a foreign-insurgent network. Instead of being about enemies in a distant war zone, however, the network described in the memo consisted of former aides to President Barack Obama.

The memo claimed that the “communications infrastructure” that the Obama White House used to “sell Obamacare and the Iran Deal to the public” had been moved to the private sector, now that the former aides were out of government. It called the network the Echo Chamber and accused its members of mounting a coördinated effort “to undermine President Trump’s foreign policy” through organized attacks in the press against Trump and his advisers. “These are the Obama loyalists who are probably among those coordinating the daily/weekly battle rhythm,” the memo said, adding that they likely operated a “virtual war room.” The memo lists Ben Rhodes, a former deputy national-security adviser to President Obama, as “likely the brain behind this operation” and Colin Kahl, Vice-President Joe Biden’s former national-security adviser, as its “likely ops chief.”

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The memo is unsigned and undated, and Trump Administration officials familiar with it offered conflicting accounts of who authored it and whether it originated inside or outside the White House.

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Some of the same conspiracy theories expressed in the memo appear in internal documents from an Israeli private-intelligence firm that mounted a covert effort to collect damaging information about aides to President Obama who had advocated for the Iran deal. In May, 2017, that firm, Black Cube, provided its operatives with instructions and other briefing materials that included the same ideas and names discussed in the memo. The Black Cube documents obtained by The New Yorker referred to Rhodes and Kahl, arguing that they were using allies in the media to undermine the Trump Administration.

[...]

The New Yorker identified the firm as Black Cube, an organization that Harvey Weinstein had hired to collect information on women accusing him of sexual abuse and journalists trying to expose the allegations. Black Cube has declined to answer questions about who hired it to collect damaging information on Rhodes and Kahl, citing client confidentiality. In a statement, the firm said that “Black Cube does not get involved in politics, and has no relation whatsoever to the Trump administration, to Trump aides, to anyone close to the administration, or to the Iran Nuclear deal. Black Cube is not aware of the documents mentioned in this article, neither their contents.” [...] [T]he memo, circulated at senior levels in the White House, shows just how deeply the Echo Chamber conspiracy theory had penetrated business and politics, and suggests a commonality of interests between Black Cube’s unidentified client and parts of the Trump Administration.

Whether those behind the memo had any connection to Black Cube’s work remains unclear.

[...]

Conspiracy theories of this kind appear to have thrived in the Trump White House, which was divided into factions that often used media leaks to undermine their rivals and compete for influence with the President.

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The Black Cube documents show a similar focus on the lines of communication between Obama-era officials and the press. The firm compiled a list of nine reporters and commentators it claimed were part of the Echo Chamber, including The Atlantic’s Jeffrey Goldberg, the New York Times’ Max Fisher, and NBC News’s Andrea Mitchell.

[...]

Black Cube also assembled a list of six additional journalists and commentators it described as being “close to Rhodes vessels of his message.” Operatives approached targeted individuals to elicit potentially damaging statements about Rhodes and Kahl. At least one of those conversations, with a commentator on the list, Trita Parsi, was secretly recorded. Operatives also used false identities and front companies to try to dupe targets, including Rhodes’s and Kahl’s wives, into unwittingly sharing information.

[...]

The memo also claims that other former Obama Administration officials are part of the Echo Chamber. Jake Sullivan, a former adviser to Hillary Clinton and Joe Biden, is identified as one of the leaders of the Echo Chamber.The former Obama Administration officials Tommy Vietor, Ned Price, Jon Favreau, Jon Finer, and Dan Pfeiffer are all listed as “likely operations officers.”

  The New Yorker

What strikes me as especially nutty in all this is that the memo consistently makes its claims as "likely" and "probably". Not only does it not offer any evidence of proof, it just says these are probably the guys who are probably trying to undermine Trump.

Of course, it doesn't mean there was no such effort, but it makes it a lot easier to dismiss the claim.

In a statement, Rhodes described the memo as “a bizarre effort to validate ‘deep state’ conspiracy theories” and said that, “given Trump’s many efforts to intimidate and malign his critics, it’s worth asking how his White House and outside enablers acted on this strange memo.”

Well, for one, Trump screamed over and over that Obama was wiretapping him.



One author of the article, Ronan Farrow, discusses the information with Wolf Blitzer here.

The memo itself as reproduced in this article: