• Thanks for stopping by. Logging in to a registered account will remove all generic ads. Please reach out with any questions or concerns.

U.S. uncovers major Russian spy ring

Alleged Russian spy ring members led typical American lives
The charges against 11 suspects expose a surprising – and mundane – side to modern espionage.
The LA Times
Link: http://www.chicagotribune.com/news/nationworld/la-na-russian-agents-lives-20100630,0,2612383.story?page=1

Reporting from Montclair, N.J. —
Richard and Cynthia Murphy grew lettuce in a backyard garden, walked their daughters to the school bus each morning, and swapped Christmas cards with neighbors who had moved to Texas.

Their modest three-bedroom house sported maroon shutters and a wrap-around porch, and sat on a winding street in a well-heeled suburb across from Manhattan. They drove a green Honda Civic.

To all appearances, the Murphys were a typical, child-obsessed American family — not deep-cover Russian spies straight from a Cold War novel.

Their arrests, along with those of 9 other alleged Russian spies, has exposed a surprising side to modern espionage: The group led mundane lives far from the James Bond image. Instead of car chases and shootouts, they paid taxes, haggled over mortgages, and struggled to remember computer passwords.

As a result, the 11 — the biggest alleged spy ring every broken by the FBI — blended into American society for more than a decade. They joined neighbors at block parties, school picnics and bus stops. Four of the couples were married, and at least three had young children.

One suspect wrote columns for a Spanish-language newspaper in New York. Another ran an international consulting and management firm in Boston, while his wife sold high-priced real estate near Harvard University. Yet another drove a shiny blue BMW to his investment banking job in Seattle; he regularly updated his status on LinkedIn, a social networking site.

If their cover jobs were ordinary, their secret lives had a humdrum side that sometimes seems more like Woody Allen than John LeCarre.

One suspect, Anna Chapman, bought a Verizon cellphone in Brooklyn, N.Y., with a patently false address: 99 Fake Street. She also posted sultry photos of herself on Facebook and videos on YouTube. Another, Juan Lazaro, used a payoff from Moscow to pay nearly $8,000 in overdue county and city taxes, according to court documents.

Donald Howard Heathfield and Tracey Lee Ann Foley, the alleged spies in Boston, filed regular expense reports to Moscow Center, headquarters for Russia's foreign intelligence agency, called the SVR.

"Got from Ctr. 64500 dollars, income 13940, interest 76. Expenses: rent 8500, utilities 142, tel. 160, car lease 2180, insurance 432, gas 820, education 3600," plus medical, lawyers' fees, meals and gifts, mailboxes, computer supplies, and so on, they wrote in one, according to an FBI affidavit.

And the lettuce-growing Murphys of Montclair repeatedly argued with Moscow Center in encrypted computer messages last summer about who should legally own their $400,000 house — them or the SVR.

"From our perspective, purchase of the house was solely a natural progression of our prolonged stay here," the Murphy's explained, apparently after being reprimanded. "It was a convenient way to solve the housing issue, plus to 'do as the Romans do' in a society that values home ownership."

Murphy later whined to another spy about their bosses back in Moscow: "They don't understand what we go through over here." .........................

Continues at the link
 
Family caught up in spy drama wants answers

Wed Jun 30, 2:11 AM


By Jim Bronskill And Mike Blanchfield, The Canadian Press
 
OTTAWA - An Ontario family caught up in a global espionage drama wants answers from the Canadian government amid fears they'll now have trouble travelling abroad — or might even get a late-night visit from Russian spies.


Brampton resident David Heathfield said Tuesday he'd like to hear from authorities in Ottawa after his dead brother's name turned up in U.S. court files about an alleged spy ring run from Moscow.


The FBI says a Boston-area man accused of being a Russian agent assumed the identity of Donald Heathfield, who died at six weeks of age in Montreal in 1963.


Donald Heathfield and his wife, Tracey Lee Ann Foley, a real estate agent who also claimed to be Canadian, are among 11 people arrested as part of the supposed spy network.



The mysterious man was apparently the developer of Future Map, a software system, and served as a principal with the Massachusetts office of Global Partners Inc., a business-services firm.


In searching a Cambridge, Mass., safe-deposit box, investigators found a photocopy of an Ontario birth certificate in the name of Donald Howard Graham Heathfield. An FBI obituary hunt revealed the man to be the deceased son of Howard William Heathfield of Burlington, Ont., who died in June 2005 at age 70.


Russian foreign intelligence agents of the SVR — and their predecessors with the infamous Soviet KGB — have long taken up the identities of people who passed on as infants as a means of establishing new covers abroad.

(...)
 
And now a femme fatale?

(photo originally from CBS news)
Anna_Chapman11.jpg


Associated Press link

US suspect dubbed femme fatale of Russian spy case


32 minutes ago


By Cristian Salazar,Tom Hays, The Associated Press


NEW YORK, N.Y. - Anna Chapman has been called the femme fatale of a spy case with Cold War-style intrigue — a striking redhead and self-styled entrepreneur who dabbled in real estate and mused on her Facebook page, "if you can dream, you can become it."


Chapman's American dream, U.S. authorities say, was a ruse.


The 28-year-old Chapman, they say, was a savvy Russian secret agent who worked with a network of other operatives before an FBI undercover agent lured her into an elaborate trap at a coffee shop in lower Manhattan.



Though the U.S. has branded the operatives as living covertly, at least in Chapman's case, she had taken care to brand herself publicly as a striver of the digital age, passionately embracing online social networking by posting information and images of herself for the world to see.


Prosecutors have charged Chapman and 10 other suspects with following orders by Russian intelligence to become "Americanized" enough to infiltrate "policymaking circles" and feed information back to Moscow.


Assistant U.S. Attorney Michael Farbiarz has called evidence against Chapman "devastating." She is "someone who has extraordinary training, who is a sophisticated agent of Russia," he said.


Chapman and nine others accused of being ring members were arrested across the northeastern U.S. and charged with failing to register as foreign agents, a crime that is less serious than espionage and carries up to five years in prison. Some also face money laundering charges. An 11th suspect was arrested in Cyprus, accused of passing money to the other 10 over several years.


Prosecutors said several of the defendants were Russians living in the U.S. under assumed names and posing as Canadian or American citizens. It was unclear how and where they were recruited, but court papers said the operation went as far back as the 1990s. Exactly what sort of information the agents are alleged to have provided to their Russian handlers — and how valuable it may have been — was not disclosed.


The FBI finally moved in to break up the ring because one of the suspects — apparently Chapman, who was bound for Moscow, according to court papers — was going to leave the country, the Department of Justice said Tuesday.



The court papers allege that some of the ring members were husband and wife and that they used invisible ink, coded radio transmissions and encrypted data and employed methods such as swapping bags in passing at a train station.


Farbiarz called the arrests "the tip of the iceberg" of a conspiracy by Russia's intelligence service, the SVR, to collect information inside the U.S. The arrests raised fears that Moscow has planted other couples.


Such deep-cover agents are known as "illegals" in the intelligence world because they take civilian jobs instead of operating inside Russian embassies and military missions.


Russian officials initially denounced the arrests as "Cold War-era spy stories" and accused elements of the U.S. government of trying to undermine the improving relationship between Moscow and Washington. But the White House and Russian Prime Minister Vladimir Putin expressed confidence that the arrests would not damage ties between the two nations.


At a court hearing Monday in federal court in Manhattan, where Chapman was jailed without bail, her attorney called the case against her weak. He said she had visited the United States on and off since 2005 before settling in Manhattan to start a business.


Chapman took an apartment a block from Wall Street and began using online social networks, including LinkedIn and Facebook, to develop business contacts and to market her skills. On her LinkedIn page, Chapman is listed as the chief executive officer of PropertyFinder Ltd., which maintains a website featuring real estate listings in Moscow, Spain, Bulgaria and other countries.


"Love launching innovative high-tech startups and building passionate teams to bring value into market," Chapman's LinkedIn summary says.


She lists previous jobs at an investment company and a hedge fund in London. The summary also says she earned a master's degree in economics at a Russian university in 2005.

In more than 90 photos posted to Facebook, Chapman is pictured in various countries, including Turkey, where she is in one of the rooms of the luxurious Hotel Les Ottoman, in Istanbul. There are also what look like family photographs from Russia and photographs of her dressed in a student uniform.

Her Internet footprints also include a photo of her posing with a glass of wine between two men at the Global Technology Symposium at Stanford University in March — it cost more than $1,000 to attend — and video clips, speaking in Russian about the economic opportunities in her adopted home.

Media reports quickly branded her a femme fatale, and tabloids splashed her photos on their front pages.

An acquaintance, David Hantman, owner of a New York real estate company, described Chapman as "pleasant, very professional, friendly."

"There's nothing too crazy about her that I knew of," he said.

A criminal complaint alleges that, unbeknownst to her business contacts such as Hantman, Chapman was using a specially configured laptop computer to transmit messages to another computer of an unnamed Russian official — a handler who was under surveillance by the FBI.

The laptop exchanges occurred 10 times, always on Wednesdays, until June, when an undercover FBI agent got involved, prosecutors said. The agent, posing as a Russian consulate employee and wearing a wire, arranged a meeting with Chapman at a Manhattan coffee shop, they said.

During the meeting, they initially spoke in Russian but then agreed to switch to English to draw less attention to themselves, the complaint says in recounting their recorded conversation.

"I need more information about you before I can talk."

"OK. My name is Roman. ... I work in the consulate."

The undercover said he knew she was headed to Moscow in two weeks "to talk officially about your work," but before that, "I have a task for you to do tomorrow."

The task: To deliver a fraudulent passport to another woman working as a spy.

"Are you ready for this step?" he asked.

"Of course," she responded.

The undercover gave her a location and told her to hold a magazine a certain way — that way, she would be recognized by a Russian agent, who would in turn confirm her identity by saying to her, "Excuse me, but haven't we met in California last summer?"

But Chapman was leery, prosecutors said.

"You're positive no one is watching?" they say she told the undercover agent after being given the instructions.

Afterward, authorities say, she was concerned enough to buy a cellphone and make a "flurry of calls" to Russia. In one of the intercepted calls, a man advised her she may have been uncovered, should turn in the passport to police and get out of the country.

She was arrested at a New York Police Department precinct after following that advice, authorities said.

Authorities say the undercover's parting words to her had been, "Your colleagues in Moscow, they know you're doing a good job. So keep it up."
 
I would gladly interrogate her  ;D

That being said, having been to Russia for a while and knowing quite a few... she looks Russian and she behaves very russian on her photos. That and the fact that they reportedly failed to provide any good info leads me to believe the tradecraft of the SVR might have gone down a bit...
 
Russian women like to strike "poses" for pictures... like, all pictures. I looked up her profile. She does strike a pose every time. They also like to wear fur coats of dubious esthetics by North American standards... she does. They are also generally not afraid to show their body (for the enjoyment of the world) and to dress down, which she did on her public photos. Finally she also has very russian traits, possibly some Ukrainian in too (the round face). I showed those pictures to two colleagues who had lived in Russia and who did not know who she was, and they both correctly guessed she was Russian.

Just saying...
 
As for the tradecraft (I forgot), the TIME Magazine also published some more info allegedly relayed by the FBI on some parts of their investigation...

http://www.time.com/time/nation/article/0,8599,2000396,00.html

If those are true (!), they also seem to point to rather sloppy tradecraft.
 
An Ontario family caught up in a global espionage drama wants answers from the Canadian government amid fears they'll now have trouble travelling abroad — or might even get a late-night visit from Russian spies.

Brampton resident David Heathfield said Tuesday he'd like to hear from authorities in Ottawa after his dead brother's name turned up in U.S. court files about an alleged spy ring run from Moscow.

The FBI says a Boston-area man accused of being a Russian agent assumed the identity of Donald Heathfield, who died at six weeks of age in Montreal in 1963 ....
Depending on how far back the work to establish the identity went (did they watch this?), wouldn't this sort of "checking to see if someone's dead" loophole be closed by now? 

Edited to add this - I wonder where Mr. Metsos is going to turn up next?
A Canadian man wanted in connection with an alleged Russian spy ring in the United States has gone missing in Cyprus where he jumped bail on Wednesday, police said.

Christopher Robert Metsos, 54, was arrested at the island's Larnaca airport on Tuesday after immigration officers discovered his name on a stop list.

Under the terms of his bail, a court allowed Metsos to go free on condition that he visits the police station in central Larnaca each day and surrender his travel documents.

But he failed to sign in on Wednesday between 6 and 8 pm as ordered by the court, which released him on 26,500 euros (32,330 dollars) bail to await extradition, police said.

"Police then went to check his hotel and he could not be located. After that we requested a warrant for his arrest" for breaching the terms of his bail, police spokesman Michalis Katsounotos told AFP ....
 
TimBit said:
Russian women like to strike "poses" for pictures... like, all pictures. I looked up her profile. She does strike a pose every time. They also like to wear fur coats of dubious esthetics by North American standards... she does. They are also generally not afraid to show their body (for the enjoyment of the world) and to dress down, which she did on her public photos. Finally she also has very russian traits, possibly some Ukrainian in too (the round face). I showed those pictures to two colleagues who had lived in Russia and who did not know who she was, and they both correctly guessed she was Russian.

Just saying...

I was really under the impression that all Russians were bears on unicycles.  Atleast that's what family guy taught me.  Hmmm she doesn't look like a bear on a unicycle in her photo.  hihi ;D

http://www.youtube.com/watch?v=FWDQJkXfwbo
 
milnews.ca said:
Edited to add this - I wonder where Mr. Metsos is going to turn up next?

I seriously put on my best 'WTF?' face when I heard that they had allowed an alleged spy to post bail.
He's either been ordered dead by the Kremlin, or more likely, found his way out of Cyprus and back to the motherland.
 
interesting articles............v-e-r-y.....i-n-t-e-r-e-s-t-i-n-g

Apparantly every country has spies, and every country knows that every other country is spying on
any other country, including their own. It's just one big  :worms:  Every now and then someone gets caught and their affiliated countries offer their sincere excuses, pay the piper, and carry on with the
normal daily agenda...........spying included ;D
 
TimBit said:
Russian women like to strike "poses" for pictures... like, all pictures. I looked up her profile. She does strike a pose every time. They also like to wear fur coats of dubious esthetics by North American standards... she does. They are also generally not afraid to show their body (for the enjoyment of the world) and to dress down, which she did on her public photos. Finally she also has very russian traits, possibly some Ukrainian in too (the round face). I showed those pictures to two colleagues who had lived in Russia and who did not know who she was, and they both correctly guessed she was Russian.

Just saying...

Like most women in New Joisey, or Surrey (BC)?
 
Anna Kushchenko  -alias Anna Chapman : photo located on the russian website Odnoklassniki, a russian version of classmates.

Photos are coming out. The Press is digging deep in the U.S. 
 
old medic said:
Anna Kushchenko  -alias Anna Chapman : photo located on the russian website Odnoklassniki, a russian version of classmates.

Photos are coming out. The Press is digging deep in the U.S.

If she is married we'd have a real life Mr and Mrs Smith movie right here.  She definately has the looks for it. 
 
Wonder what sentences these people would get, if the DOJ says they have been monitoring them for ten years. Would it be life sentences? Guys like Aldrich Ames got life sentences, or was that because he got people killed?
 
http://www.ctv.ca/CTVNews/World/20100701/Spying-for-russia-100601/
The Associated Press
Date: Thursday Jul. 1, 2010 8:15 PM ET

NEW YORK — A prosecutor warned Thursday that a powerful and sophisticated network of U.S.-based Russian agents were eager to help defendants in an alleged spy ring flee the country on bail. U.S. authorities also said one defendant confessed that he worked for Russia's intelligence service and others had large amounts of cash.

"There are a lot of Russian government officials in the United States who are actively assisting this conspiracy," Assistant U.S. Attorney Michael Farbiarz told U.S. Magistrate Judge Ronald L. Ellis as he argued that those arrested last weekend should remain held without bail.

Ellis ruled that two defendants, Cynthia and Richard Murphy, should remain in custody because there was no other way to guarantee they would not flee since it was unclear who they were. But he set bail of $250,000 for prominent Spanish-language journalist Vicky Pelaez, a U.S. citizen born in Peru, saying she did not appear to be trained as a spy. The judge required electronic monitoring and home detention and said she would not be freed before Tuesday, giving prosecutors time to appeal.

Ellis ruled after Farbiarz said the evidence against the defendants continued to mount and the case was solid.

"Judge, this is a case where the evidence is extraordinarily strong. Prosecutors don't get cases like this very often," he said.

The decision to set bail for one defendant came as police on the island nation of Cyprus searched airports, ports and yacht marinas to find a man who had been going by the name Christopher Metsos, who disappeared after a judge there freed him on $32,500 bail. Metsos failed to show up Wednesday for a required meeting with police. He was charged by U.S. authorities with supplying funds to the other members of the ring.

Authorities also examined surveillance video from crossing points on the war-divided island, fearing the suspect might have slipped into the breakaway north, a diplomatic no-man's-land that's recognized only by Turkey and has no extradition treaties.

"This is a case that in the course of less than a week has gotten much, much better," Farbiarz said, citing $80,000 in new, hundred dollar bills found in the safe-deposit box of two defendants who had been living in New Jersey.

Farbiarz said a criminal complaint filed against the defendants was "relatively long but the complaint is the tip of an iceberg."

The prosecutor said new evidence included the discovery of multiple cellular phones and multiple currencies in a safe deposit box and other "tools of the trade when they're in this business."

He said the spy ring consisted of people who for decades had worked to Americanize themselves while engaging in secret global travel with false passports, secret code words, fake names, invisible ink, encrypted radio and techniques so sophisticated that prosecutors chose not to describe them in court papers.

If freed, Farbiarz warned, the defendants would certainly flee, using coconspirators in the United States to disappear and the tentacles of "one of the most sophisticated intelligence services in the world."

Farbiarz said the defendants have a "powerful sophisticated network they can call upon in the United States."

The prosecutor's claims were countered by lawyers for several defendants who said that their clients, accused of going undercover in American cities and suburbs, were harmless and should be released on bail.

"It's all hyperbole, your honour," attorney Donna Newman said on behalf of Richard Murphy.

She said Murphy was a stay-at-home-dad who did the chores while his wife Cynthia earned a good living.

Farbiarz said the couple was proof that the defendants carried out "deception and lies at a systematic level."

He said U.S. agents had been surveilling them for years and yet "after all those years of listening, there is no inkling at all that their children who they live with have any idea their parents are Russian agents."

Ellis said the disappearance of Metsos after he was granted bail on the Mediterranean island did not affect his ruling. "I don't know what they do in Cyprus," the judge said.

Lawyers for Juan Lazaro asked to postpone his bail hearing just hours after prosecutors revealed in a letter to Ellis that Lazaro had made incriminating statements.

U.S. authorities said in their court filing that Lazaro made a lengthy statement after his June 27 arrest in which he discussed some details of the operation, which prosecutors said involved Russian moles on a long-term mission to inflitrate American society.

Among other things, prosecutors said, he admitted that Juan Lazaro was not his real name, that he wasn't born in Uruguay and wasn't a citizen of Peru, as he had long claimed, that his home in Yonkers, New York, had been paid for by Russian intelligence and that his wife, Pelaez, had passed letters to the "Service" on his behalf.

He also told investigators that even though he loved his son, "he would not violate his loyalty to the 'Service' even for his son," three assistant U.S. attorneys wrote in a court memo. They added that Lazaro, who investigators claim spent at least part of his childhood in Siberia, also wouldn't reveal his true name.

Federal prosecutors said they had searched a safe-deposit box belonging to the Murphys this week and found eight unmarked envelopes each stuffed with $10,000.

Earlier in the day, the lawyer for another suspect, Donald Heathfield, told a judge the case against his client was "extremely thin."

"It essentially suggests that they successfully infiltrated neighbourhoods, cocktail parties and the PTA," said his attorney, Peter Krupp.

A judge in a federal court in Boston gave Heathfield and his wife, Tracey Lee Ann Foley, of Massachusetts until July 16 to prepare for a bail hearing.

As they entered the court in handcuffs and leg shackles, the couple smiled at their sons, a teenager and a college student. The boys waved to their parents.

A magistrate judge in Virginia postponed a hearing for three other people accused of being foreign agents, Michael Zottoli, Patricia Mills and Mikhail Semenko. It has been rescheduled for Friday.

Not due in court Thursday was Anna Chapman, the alleged spy whose heavy presence on the Internet and New York party scene has made her a tabloid sensation. She was previously ordered held without bail.

Eight of the suspects are accused by prosecutors of being foreign-born, husband-and-wife teams who were supposed to be Americanizing themselves and gradually developing ties to policymaking circles in the U.S.

Most were living under assumed identities, according to the FBI. Their true names and citizenship remain unknown, but several are suspected of being Russians by birth.

Heathfield claimed to be a Canadian, but was using a birth certificate of a deceased Canadian boy, agents said in a court filing. His wife, Foley, purported to be from Canada, too, but investigators said they searched a family safe deposit box found photographs taken of her when she was in her 20s that had been developed by a Soviet film company.

Two, Chapman and Semenko, were Russians who didn't attempt to hide their national origin, FBI agents said.

Britain's Foreign Secretary William Hague said the U.K. was investigating whether Foley might have used a forged British passport. The British spy agency MI5 also is investigating the extent to which Foley and Chapman had links to London, and will likely seek to find out whether either attempted to recruit British officials as informants.

There is evidence that at least some of the alleged agents had success cultivating contacts.

Clare Lopez, senior fellow at the Center for Security Policy and a former operations officer for the CIA, said the alleged plotters might have someday been able to produce valuable information, if left in place long enough.

"Their value is not just in acquiring classified information," she said. "There's a lot that goes on that's not simply stealing secrets and sending them back to Moscow."
 
Two more Russian spy suspects admit using fake names
Kathleen Miller
Alexandria, Va. — The Associated Press
Copy at: http://www.theglobeandmail.com/news/world/two-more-russian-spy-suspects-admit-using-fake-names/article1626714/

Prosecutors say two more suspects in an alleged Russian spy ring have admitted they are Russian citizens living in the U.S. under false identities.

In a court filing Friday, prosecutors said the defendants known as Michael Zottoli and Patricia Mills told authorities after their arrest that their real names are Mikhail Kutzik and Natalia Pereverzeva.

The pair were arrested in Arlington, Va., where they have been living as a married couple with two young children.

Prosecutors also say the couple had $100,000 (U.S.) in cash and phony passports and other identity documents stashed in safe deposit boxes.

They were appearing in federal court in Virginia Friday along with a third suspect, Mikhail Semenko.

They are among 11 suspects arrested in the spy ring this week.
 
I have come to the conclusion that the US government made the apprehension and discovery of these Russian spies as a conspiracy to promote the movie Salt, with Angelina Jolie.
 
Back
Top