Justice Department

Boeing Pays $200 Million To Settle SEC Charges Over 737 Max

By Associated Press
September 23, 2022

Neither Boeing nor former CEO Dennis Muilenburg admitted wrongdoing over two deadly 737 Max crashes, but they offered to settle and pay penalties.

Boeing Co. will pay $200 million to settle charges that the company and its former CEO misled investors about the safety of its 737 Max after two of the airliners crashed, killing 346 people.

The Securities and Exchange Commission said Thursday that it charged the aircraft maker and former CEO Dennis Muilenburg with making significant misleading public statements about the plane and an automated flight-control system that was implicated in the crashes in Indonesia and Ethiopia.

Neither Boeing nor Muilenburg admitted wrongdoing, but they offered to settle and pay penalties, including $1 million to be paid by Muilenburg, who was ousted in December 2019, nine months after the second crash.

The SEC said Boeing and Muilenburg knew that the flight system, known as MCAS, posed a safety issue but promised the public that the plane was safe. The SEC said they also falsely claimed that there had been no gaps in the process of certifying the plane in the first place.

“Boeing and Muilenburg put profits over people by misleading investors about the safety of the 737 Max all in an effort to rehabilitate Boeing’s image” after the crashes, said Gurbir Grewal, director of the SEC’s enforcement division.

Boeing said it has made “broad and deep changes across our company in response to those accidents” to improve safety and quality.

“Today’s settlement is part of the company’s broader effort to responsibly resolve outstanding legal matters related to the 737 Max accidents in a manner that serves the best interests of our shareholders, employees and other stakeholders,” said the Arlington, Virginia-based company.

A new Max operated by Indonesia’s Lion Air crashed into the Java Sea in October 2018, and another Max flown by Ethiopian Airlines nosedived into the ground near Addis Ababa in March 2019. In each crash, MCAS pushed the nose down after getting faulty readings from a single sensor, and pilots were unable to regain control.

The crashes led regulators around the world to ground the plane for nearly two years until Boeing made fixes to the flight-control system, which was designed to help prevent aerodynamic stalls when the nose points up too sharply. Neither plane that crashed was in danger of stalling.

The SEC accused Boeing of misleading investors in a press release after the Indonesia crash which said the plane was “as safe as any airplane that has ever flown the skies.” Boeing knew when it made that claim that MCAS would need to be fixed and was already designing changes, the SEC said.

After the crash in Ethiopia, Muilenburg said on a call with investors and Wall Street analysts and during Boeing’s annual shareholder meeting that the company had followed the normal process for getting the plane certified by regulators. But by then Boeing — in response to a subpoena from federal prosecutors — had already found documents indicating that it didn’t disclose key facts about MCAS to the Federal Aviation Administration, the SEC charged.

Boeing reached a separate $2.5 billion settlement with the Justice Department last year. Most of that money went to airlines whose Max jets were grounded.

Additional reporting by The Associated Press.

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Trump Docs Probe: Court Lifts Hold On Mar-a-Lago Records

By Associated Press
September 21, 2022

The ruling means the Justice Department will immediately regain access to the classified documents seized from Mar-a-Lago.

A federal appeals panel has lifted a judge’s hold on the Justice Department’s ability to use classified records seized from former President Donald Trump’s Florida estate in its ongoing criminal investigation.

The ruling from a three-judge panel of the U.S. Court of Appeals for the 11th Circuit is a victory for the Justice Department, clearing the way for it to immediately resume its use of the documents as it evaluates whether to bring criminal charges in its investigation into the presence of top-secret government records held at Mar-a-Lago after Trump left the White House.

The government had argued that its investigation had been impeded by the order from U.S. District Judge Aileen Cannon that temporarily barred investigators from continuing to use the documents in the probe. Cannon, a Trump appointee, had said the hold would remain in place pending a separate review by an independent arbiter she had appointed at the Trump team’s request.

The FBI last month seized roughly 11,000 documents, including about 100 with classification markings, during a court-authorized search of the Palm Beach club. It has launched a criminal investigation into whether the records were mishandled or compromised. It is not clear whether Trump or anyone else will be charged.

Cannon ruled on Sept. 5 that she would name an independent arbiter, or special master, to do an independent review of those records and segregate any that may be covered by claims of attorney-client privilege or executive privilege and to determine whether any of the materials should be returned to Trump. Raymond Dearie, the former chief judge of the federal court based in Brooklyn, has been named to the role.

The Justice Department had argued that a special master review of the classified documents was not necessary. It said Trump, as a former president, could not invoke executive privilege over the documents, nor could they be covered by attorney-client privilege because they do not involve communications between Trump and his lawyers.

Trump’s lawyers argued that an independent review of the records was essential given the unprecedented nature of the investigation. The lawyers also said the department had not yet proven that the seized documents were classified, though they notably stopped short of asserting — as Trump repeatedly has — that the records were previously declassified. They have resisted providing Dearie with their position on that question, signaling the issue could be part of their defense in the event of an indictment.

Additional reporting by The Associated Press.

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Migrants Sue Florida Governor Over Martha’s Vineyard Flights

By Maura Sirianni

and Associated Press
September 21, 2022

The lawsuit alleges that the migrants were told they were going to Boston or Washington, and were induced with perks like McDonald’s gift cards.

Venezuelan migrants flown from San Antonio, Texas, to the upscale Massachusetts island of Martha’s Vineyard are suing Florida Gov. Ron DeSantis and his transportation secretary for engaging in a “fraudulent and discriminatory scheme” to relocate them.

The lawsuit, filed in federal court in Boston, alleges that the migrants were told they were going to Boston or Washington, “which was completely false,” and were induced with perks such as $10 McDonald’s gift certificates.

“No human being should be used as a political pawn,” said Ivan Espinoza-Madrigal, executive director of Lawyers for Civil Rights, which is seeking class-action status in the lawsuit filed on behalf of several migrants who were aboard last week’s flights and Alianza Americas, a network of advocacy groups.

“It is opportunistic that activists would use illegal immigrants for political theater,” said Taryn Fenske, DeSantis’ communication director, in a statement late Tuesday.

The lawsuit, which also names Florida Transportation Secretary Jared W. Perdue as a defendant, alleges that migrants were induced to cross state lines under false pretenses, a line that some Democratic officials are using to urge a federal investigation.

On Monday, Javier Salazar, the sheriff of Bexar County, which includes San Antonio, opened an investigation into the flights, but the elected Democrat did not say what laws may have been broken. California Gov. Gavin Newsom and U.S. Rep. Joaquin Castro, whose district includes San Antonio, have asked the Justice Department to begin a probe.

Guesswork was rampant among government officials, advocates and journalists Tuesday about DeSantis’ next move, consistent with the element of surprise that he and another Republican governor, Greg Abbott of Texas, have sought to achieve by busing and flying migrants across the country to Democratic strongholds with little or no notice.

Asked Tuesday about speculation that DeSantis may send migrants to his home state of Delaware, President Joe Biden said: “He should come visit. We have a beautiful shoreline.”

DeSantis declined to confirm speculation, based on flight-tracking software, that more migrants were on the move. He again defended his decision to fly about 50 Venezuelans to Martha’s Vineyard, saying their decisions were completely voluntary and, without evidence, that they were in awful condition when Florida got involved.

Additional reporting by The Associated Press.

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Arbiter In Trump Docs Probe Signals Intent To Move Quickly

“We’re going to proceed with what I call responsible dispatch,” Raymond Dearie, a veteran Brooklyn judge, told lawyers.

The independent arbiter tasked with inspecting documents seized in an FBI search of former President Donald Trump’s Florida home said Tuesday he intends to push briskly through the review process and appeared skeptical of the Trump team’s reluctance to say whether it believed the records had been declassified.

“We’re going to proceed with what I call responsible dispatch,” Raymond Dearie, a veteran Brooklyn judge, told lawyers for Trump and the Justice Department in their first meeting since his appointment last week as a so-called special master.

The purpose of the meeting was to sort out next steps in a review process expected to slow by weeks, if not months, the criminal investigation into the retention of top-secret information at Mar-a-Lago after Trump left the White House. As special master, Dearie will be responsible for sifting through the thousands of documents recovered during the Aug. 8 FBI search and segregating any that might be protected by claims of executive privilege or attorney-client privilege.

Though Trump’s lawyers had requested the appointment of a special master to ensure an independent review of the documents, they have resisted Dearie’s request for more information about whether the seized records had been previously declassified — as Trump has maintained. His lawyers have consistently stopped short of that claim even as they asserted in a separate filing Tuesday that the Justice Department had not proven that the documents were classified. In any event, they say, a president has absolute authority to declassify information.

“In the case of someone who has been president of the United States, they have unfettered access along with unfettered declassification authority,” one of Trump’s lawyers, James Trusty, said in court Tuesday.

But Dearie said that if Trump’s lawyers will not actually assert that the records have been declassified, and the Justice Department instead makes an acceptable case that they remain classified, then he would be inclined to regard them as classified.

“As far as I’m concerned,” he said, “that’s the end of it.”

In a letter to Dearie on Monday night, the lawyers said the declassification issue might be part of Trump’s defense in the event of an indictment. And Trusty said in court Tuesday that the Trump team should not be forced at this point in the investigation to disclose details of a possible defense based on the idea the records had been declassified.

He denied that the lawyers were trying to engage in “gamesman-like” behavior but instead said it was a process that required “baby steps.” He said the right time for the discussion is whenever Trump presses forward with a claim to get any seized property back.

Dearie said he understood the position but observed, “I guess my view of it is, you can’t have your cake and eat it” too.

The resistance to the judge’s request was notable because it was Trump’s lawyers, not the Justice Department, who had requested the appointment of a special master and because the recalcitrance included an acknowledgment that the probe could be building toward an indictment.

Despite the focus on whether the seized documents are classified or not, the three statutes the Justice Department listed on a warrant as part of its investigation do not require that the mishandled information be classified in order for prosecutors to initiate a criminal case.

The Trump team has also questioned the feasibility of some of the deadlines for the special master’s review. That work includes inspecting the roughly 11,000 documents, including about 100 marked as classified, that were taken during the FBI’s search.

U.S. District Judge Aileen Cannon, a Trump appointee who granted the Trump team’s request for a special master, had set a Nov. 30 deadline for Dearie’s review and instructed him to prioritize the tranche of classified records.

Dearie, a Ronald Reagan appointee whose name is on the atrium of his Brooklyn courthouse, made clear during Tuesday’s meeting that he intended to meet the deadlines, saying there was “little time” to complete the assigned tasks.

Julie Edelstein, a Justice Department lawyer, said she was hopeful that the department could get the documents digitized and provided to Trump’s lawyers by early next week. She noted that the department had given the legal team a list of five vendors approved by the government for the purposes of scanning, hosting and otherwise processing the seized records.

After some haggling, Dearie instructed Trusty’s lawyers to choose a vendor by Friday.

Earlier Tuesday, the Trump legal team urged the U.S. Court of Appeals for the 11th Circuit to leave in place Cannon’s order temporarily barring the Justice Department’s use of the classified records for its criminal investigation while Dearie completes his review. The department is also contesting Cannon’s requirement that it provide Dearie with classified materials for his review, saying such records are not subject to any possible claims of attorney-client privilege or executive privilege.

The department has also said that Cannon’s order has impeded its investigation.

Trump’s lawyers called those concerns overblown in a response Tuesday, saying investigators could still do other work on the probe even without scrutinizing the seized records.

“Ultimately, any brief delay to the criminal investigation will not irreparably harm the Government,” Trump’s lawyers wrote. “The injunction does not preclude the Government from conducting a criminal investigation, it merely delays the investigation for a short period while a neutral third party reviews the documents in question.”

Additional reporting by The Associated Press.

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Texas Sheriff Investigating Migrant Flights To Martha’s Vineyard

By Associated Press

and Newsy Staff
September 20, 2022

A San Antonio-area sheriff is investigating two flights out of his county last week, which Florida Gov. Ron DeSantis claimed responsibility for.

A Texas sheriff on Monday opened an investigation into two flights of migrants sent to Martha’s Vineyard by Florida Gov. Ron DeSantis, but did not say what laws may have been broken in putting 48 Venezuelans on private planes last week from San Antonio.

Bexar County Sheriff Javier Salazar, an elected Democrat, railed against the flights that took off in his city as political posturing. But he said investigators had so far only spoken to attorneys representing some of the migrants and did not name any potential suspects who might face charges.

He also did not mention DeSantis in a news conference that appeared to mark the first time a law enforcement official has said they would look into the flights.

“I believe there is some criminal activity involved here,” Salazar said. “But at present we are trying to keep an open mind and we are going to investigate to find out what exact laws were broken if that does turn out to be the case.”

DeSantis’ office responded with a statement that said the migrants had been given more options to succeed in Massachusetts.

“Immigrants have been more than willing to leave Bexar County after being abandoned, homeless, and ‘left to fend for themselves,’” DeSantis spokesperson Taryn Fenske said. “Florida gave them an opportunity to seek greener pastures in a sanctuary jurisdiction that offered greater resources for them, as we expected.”

The Venezuelan migrants who were flown to the wealthy Massachusetts island from San Antonio on Wednesday said they were told they were going to Boston. Julio Henriquez, an attorney who met with several migrants, said they “had no idea of where they were going or where they were.”

He said a Latina woman approached migrants at a city-run shelter in San Antonio and put them up at a nearby La Quinta Inn, where she visited daily with food and gift cards. She promised jobs and three months of housing in Washington, New York, Philadelphia and Boston, according to Henriquez.

Salazar said the migrants had been “preyed upon” and “hoodwinked.”

Some Democrats have urged the Justice Department to investigate the flights, including California Gov. Gavin Newsom and U.S. Rep. Joaquin Castro, whose district includes San Antonio.

A federal investigation might be complicated, however. It’s not clear whether anyone boarded buses or planes unwillingly, or that their civil rights were violated. The rights of asylum seekers arriving to the U.S. are also more limited because they are not citizens. The Constitution, though, does protect them from discrimination based on race or national origin and from improper treatment by the government.

Additional reporting by The Associated Press.

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Treasury Recommends Exploring Creation Of A Digital Dollar

By Associated Press
September 16, 2022

The Atlantic Council nonpartisan think tank says many other countries already are exploring or have created a central bank digital currency.

The Biden administration is moving one step closer to developing a central bank digital currency, known as the digital dollar, saying it would help reinforce the U.S. role as a leader in the world financial system.

The White House said on Friday that after President Joe Biden issued an executive order in March calling on a variety of agencies to look at ways to regulate digital assets, the agencies came up with nine reports, covering cryptocurrency impacts on financial markets, the environment, innovation and other elements of the economic system.

Treasury Secretary Janet Yellen said one Treasury recommendation is that the U.S. “advance policy and technical work on a potential central bank digital currency, or CBDC, so that the United States is prepared if CBDC is determined to be in the national interest.”

“Right now, some aspects of our current payment system are too slow or too expensive,” Yellen said on a Thursday call with reporters laying out some of the findings of the reports.

Central bank digital currencies differ from existing digital money available to the general public, such as the balance in a bank account, because they would be a direct liability of the Federal Reserve, not a commercial bank.

According to the Atlantic Council nonpartisan think tank, 105 countries representing more than 95% of global gross domestic product already are exploring or have created a central bank digital currency. The council found that the U.S. and the U.K. are far behind in creating a digital dollar or its equivalent.

Treasury, the Justice Department, the Consumer Finance Protection Bureau, the Securities and Exchange Commission and other agencies were tasked with contributing to reports that would address various concerns about the risks, development and usage of digital assets. Several reports will come out in the next weeks and months.

On Capitol Hill, lawmakers have submitted various pieces of legislation to regulate cryptocurrency and other digital assets.

The director of the National Economic Council, Brian Deese, told reporters that “we’ve seen in recent months substantial turmoil in cryptocurrency markets and these events really highlight how, without proper oversight, cryptocurrencies risk harming everyday Americans’ financial stability and our national security.”

“It is why this administration believes that now more than ever,” he said, “prudent regulation of cryptocurrencies is needed.”

Additional reporting by The Associated Press.

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Veteran NY Judge Named As Arbiter In Trump Mar-a-Lago Probe

By Associated Press
September 15, 2022

The judge granted the newly named special master, Raymond Dearie, access to the entire tranche of documents seized from Mar-a-Lago.

A federal judge on Thursday appointed a veteran New York jurist to serve as an independent arbiter and review records seized during an FBI search of former President Donald Trump’s Florida home last month.

In her order, U.S. District Judge Aileen Cannon refused a Justice Department request to lift her temporary prohibition on the department’s use of the roughly 100 classified records that were taken during the Aug. 8 search. She also granted the newly named special master, Raymond Dearie, access to the entire tranche of documents seized from the property even though the department had said the arbiter shouldn’t be permitted to inspect the batch of classified records.

The Justice Department is expected to contest the judge’s order to a federal appeals court. It had given Cannon until Thursday to put on hold her order barring the continued review of classified records, and said it would ask the Atlanta-based 11th U.S. Circuit Court of Appeals to intervene if she did not do so then.

A Justice Department spokesman did not immediately return a message Thursday evening.

The selection of Dearie, a former federal prosecutor who for years served as the chief judge of the federal court based in Brooklyn, came after both the Justice Department and Trump’s lawyers made clear that they would be satisfied with his appointment as a so-called special master.

In that role, Dearie will be responsible for reviewing the documents taken during the search of Mar-a-Lago and segregating out any that may be covered by claims of privilege. It is not clear how long the work will take but the special master process has already delayed the investigation, with Cannon directing the Justice Department to temporarily pause core aspects of its probe.

The Justice Department is investigating the hoarding of top-secret materials and other classified documents at the Florida property after Trump left office. The FBI says it recovered more than 11,000 documents from the home during its search, including roughly 100 with classification markings.

Trump’s lawyers had asked last month for a judge to name a special master to do an independent review of the records and segregate any that may be covered by claims of executive privilege or attorney-client privilege. The Justice Department argued the appointment was unnecessary, saying it had already done its own review and Trump had no right to raise executive privilege claims that ordinarily permit the president to withhold certain information from the public and Congress.

Cannon, a Trump appointee, disagreed and directed both sides to name potential candidates for the role. She also ordered the Justice Department to halt its review of the documents for investigative purposes until “further Court order” or until the special master completes their review.

The Trump team recommended either Dearie or a Florida lawyer for the job. The Justice Department said that, in addition to the two retired judges whose names it submitted, it would also be satisfied with a Dearie appointment.

Dearie served as the top federal prosecutor for the Eastern District of New York from 1982 to 1986, at which point he was appointed to the federal bench by then-President Ronald Reagan. He has also served on the Foreign Intelligence Surveillance Court, which authorizes Justice Department wiretap applications in investigations involving suspected agents of a foreign power.

He took senior status in 2011, but the Justice Department has said he remains active and had indicated to officials that he was available for the position and could work expeditiously if appointed to it.

Additional reporting by The Associated Press.

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Judge Unseals Additional Portions Of Mar-A-Lago Affidavit

By Associated Press

and Newsy Staff
September 14, 2022

DOJ has been investigating the holding of top-secret information and other classified documents at Mar-a-Lago after Donald Trump left the White House.

A federal judge Tuesday unsealed additional portions of an FBI affidavit laying out the basis for a search of former President Donald Trump’s Florida home, showing that agents earlier obtained a hard drive after issuing a subpoena for surveillance footage recorded inside Mar-a-Lago.

A heavily redacted version of the affidavit was made public last month, but the Justice Department requested permission to show more of it after lawyers for Trump revealed the existence of a June grand jury subpoena that sought video footage from cameras in the vicinity of the Mar-a-Lago storage room.

“Because those aspects of the grand jury’s investigation have now been publicly revealed, there is no longer any reason to keep them sealed (i.e. redacted) in the filings in this matter,” department lawyers wrote.

The newly visible portions of the FBI agent’s affidavit show that the FBI on June 24 subpoenaed for the footage after a visit weeks earlier to Mar-a-Lago in which agents observed 50 to 55 boxes of records in the storage room at the property. The Trump Organization provided a hard drive on July 6 in response to the subpoena, the affidavit says.

The footage could be an important piece of the investigation, including as agents evaluate whether anyone has sought to obstruct the probe. The Justice Department has said in a separate filing that it has “developed evidence that government records were likely concealed and removed from the Storage Room and that efforts were likely taken to obstruct the government’s investigation.”

The Justice Department has been investigating the holding of top-secret information and other classified documents at Mar-a-Lago after Trump left the White House. FBI agents during their Aug. 8 search of the home and club said they recovered more than 11,000 documents and 1,800 other items, including roughly 100 with classification markings.

Separately Tuesday, the Justice Department again urged U.S. District Judge Aileen Cannon to lift her hold on core aspects of the investigation. Cannon last week granted the Trump team’s request for an independent arbiter to review the seized documents and weed out from the investigation any records that may be covered by claims of executive or attorney-client privilege.

She also ordered the department to halt its review of the records pending any further court order or the completion of a review by the yet-to-be-named special master. The department urged Cannon last week to put her order on hold and told the judge Tuesday that its investigation would be harmed by a continued delay of its ability to scrutinize the classified documents.

“The government and the public unquestionably have an interest in the timely enforcement of criminal laws, particularly those involving the protection of highly sensitive information, and especially where, as here, there may have been efforts to obstruct its investigation,” the lawyers wrote.

The Trump team on Monday urged the judge to leave her order in place. His lawyers raised questions about the documents’ current classification status and noted that a president has absolute authority to declassify information, though they pointedly did not say that Trump had actually declassified anything.

Additional reporting by The Associated Press.

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What’s Left As Jan. 6 Panel Sprints To Year-End Finish

The House Jan. 6 committee is coming close to a final report, but lawmakers say there is more to come than what’s already come to light.

With only three months left in the year, the House Jan. 6 committee is eyeing a close to its work and a final report laying out its findings about the U.S. Capitol insurrection. But, the investigation is not over.

The committee has already revealed much of its work at eight hearings over the summer, showing in detail how former President Donald Trump ignored many of his closest advisers and amplified his false claims of election fraud after he lost the 2020 election to Joe Biden. Witnesses interviewed by the panel — some of them Trump’s closest allies — recounted in videotaped testimony how the former president declined to act when hundreds of his supporters violently attacked the Capitol as Congress certified President Biden’s victory on Jan. 6, 2021.

Lawmakers say there is more to come. The nine-member panel — seven Democrats and two Republicans — interviewed witnesses through all of August, and they are hoping to have at least one hearing by the end of the month. Members met Tuesday to discuss the panel’s next steps.

Because the Jan. 6 panel is a temporary or “select” committee, it expires at the end of the current Congress. If Republicans take the majority in November’s elections, as they are favored to do, they are expected to dissolve the committee in January. So the panel is planning to issue a final report by the end of December.

As for hearings, the panel’s Democratic chairman, Mississippi Rep. Bennie Thompson, said after the private members’ meeting Tuesday in the Capitol that the committee’s goal is to hold a hearing Sept. 28, but that members were still discussing whether it would happen at all.

“We’ll we’re still in the process of talking,” Thompson said. “If it happens, it will be that date. We’re not sure at this point.”

Members of the committee had promised more hearings in September as they wrapped up the series of summer hearings. Wyoming Rep. Liz Cheney, the Republican vice chairwoman, said the committee “has far more evidence to share with the American people and more to gather.”

“Doors have opened, new subpoenas have been issued and the dam has begun to break,” Cheney said at a July 21 hearing that was held in prime time and watched by 17.7 million people. “We have considerably more to do.”

It’s unclear if the hearing would provide a general overview of what the panel has learned or if they would be focused on new information and evidence. The committee conducted several interviews at the end of July and into August with Trump’s Cabinet secretaries, some of whom had discussed invoking the constitutional process in the 25th Amendment to remove Trump from office after the insurrection.

For its witnesses, the panel has already interviewed more than 1,000 people, but lawmakers and staff are still pursuing new threads. The committee recently spoke to several of the Cabinet secretaries, including former Treasury Secretary Steven Mnuchin in July and former Secretary of State Mike Pompeo and former Transportation Secretary Elaine Chao in August.

The committee also wants to get to the bottom of missing Secret Service texts from Jan. 5 to 6, 2021, which could shed further light on Trump’s actions during the insurrection, particularly after earlier testimony about his confrontation with security as he tried to join supporters at the Capitol. Thompson said Tuesday that the committee has recently obtained “thousands” of documents from the Secret Service.

The committee has also pursued an interview with conservative activist Virginia “Ginni” Thomas, who’s married to Supreme Court Justice Clarence Thomas. Lawmakers want to know more about her role in trying to help Trump overturn the election. She contacted lawmakers in Arizona and Wisconsin as part of that effort.

Members of the committee are still debating how aggressively to pursue testimony from Trump and former Vice President Mike Pence.

Some have questioned whether the committee needs to call Pence, who resisted Trump’s pressure to try and block President Biden’s certification on Jan. 6. Many of his closest aides have already testified, including Greg Jacob, his top lawyer at the White House who was with him during the insurrection as they hid from rioters who were threatening the vice president’s life. Jacobs characterized much of Pence’s thought process during the time when Trump was pressuring him.

The panel has been in discussions with Pence’s lawyers for months, without any discernible progress. Still, the committee could invite Pence for closed-door testimony or ask him to answer written questions.

The calculation is different for the former president. Members have debated whether they should call Trump, who is the focus of their probe but also a witness who has fought against the investigation in court, denied much of the evidence and floated the idea of presidential pardons for Jan. 6 rioters. Trump is also facing scrutiny in several other investigations, including at the Justice Department and over the classified documents he took to his private club.

Another bit of unfinished business is the committee’s subpoenas to five House Republicans, including Minority Leader Kevin McCarthy of California.

In May the panel subpoenaed McCarthy and Reps. Jim Jordan of Ohio, Scott Perry of Pennsylvania, Andy Biggs of Arizona and Mo Brooks of Alabama. The panel has investigated McCarthy’s conversations with Trump the day of the attack and meetings the four other lawmakers had with the White House beforehand as Trump and some of his allies worked to overturn his election defeat.

The five Republicans, all of whom have repeatedly downplayed the investigation’s legitimacy, have simply ignored the request to testify. But the Jan. 6 committee seems unlikely to meet their defiance with contempt charges, as they have with other witnesses, in the weeks before the November elections. Not only would it be a politically risky move, but it is unclear what eventual recourse the panel would have against its own colleagues.

In all, the committee must shut down within a month after issuing a final report, per its rules. But lawmakers could issue some smaller reports before then, perhaps even before the November elections. Thompson said earlier this summer that there may be an interim report in the fall.

The release of the final report will likely come close to the end of the year so the panel can maximize its time. While much of the findings will already be known, the report is expected to thread the story together in a definitive way that lays out the committee’s conclusions for history.

The committee is expected to weigh in on possible legislative changes to the Electoral Count Act, which governs how a presidential election is certified by Congress.

A bipartisan group of senators released proposed changes over the summer that would clarify the way states submit electors and the vice president tallies the votes. Trump and his allies tried to find loopholes in that law ahead of Jan. 6 as the former president worked to overturn his defeat to President Biden and unsuccessfully pressured Pence to go along.

The Jan. 6 panel’s final report is expected to include a larger swath of legislative recommendations.

Additional reporting by The Associated Press.

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Twitter Whistleblower Testifies Before Congress Over Security Flaws

By Associated Press

and Newsy Staff
September 13, 2022

Former Twitter security chief Peiter Zatko alleges that the social media platform ignored engineers and led them to “prioritize profit over security.”

A former security chief at Twitter told Congress that the social media platform is plagued by weak cyber defenses, privacy threats and the inability to control millions of fake accounts. Peiter “Mudge” Zatko, a respected cybersecurity expert, appeared before the Senate Judiciary Committee to lay out his allegations Tuesday.

“Twitter’s misleading the public, lawmakers” and regulators, Zatko said as he began his sworn testimony.

“They don’t know what data they have, where it lives and where it came from and so, unsurprisingly, they can’t protect it,” Zatko said. “It doesn’t matter who has keys if there are no locks.”

Zatko said “Twitter leadership ignored its engineers,” in part because “their executive incentives led them to prioritize profit over security.”

His message echoed one brought to Congress against another social media giant last year, but unlike that Facebook whistleblower, Frances Haugen, Zatko hasn’t brought troves of internal documents to back up his claims.

Zatko was the head of security for the influential platform until he was fired early this year. He filed a whistleblower complaint in July with Congress, the Justice Department, the Federal Trade Commission and the Securities and Exchange Commission. Among his most serious accusations is that Twitter violated the terms of a 2011 FTC settlement by falsely claiming that it had put stronger measures in place to protect the security and privacy of its users.

Sen. Dick Durbin, an Illinois Democrat who heads the Judiciary Committee, said Zatko has detailed flaws “that may pose a direct threat to Twitter’s hundreds of millions of users as well as to American democracy.”

“Twitter is an immensely powerful platform and can’t afford gaping vulnerabilities,” he said.

Unknown to Twitter users, there’s far more personal information disclosed than they — or sometimes even Twitter itself — realize, Zatko testified. He said “basic systemic failures” that were brought forward by company engineers were not addressed.

The FTC has been “a little over its head,” and far behind European counterparts, in policing the sort of privacy violations that have occurred at Twitter, Zatko said.

Zatko’s claims could also affect Tesla billionaire Elon Musk’s attempt to back out of his $44 billion deal to acquire the social platform. Musk claims that Twitter has long underreported spam bots on its platform and cites that as a reason to nix the deal he struck in April.

Many of Zatko’s claims are uncorroborated and appear to have little documentary support. Twitter has called Zatko’s description of events “a false narrative … riddled with inconsistencies and inaccuracies” and lacking important context.

Among the assertions from Zatko that drew attention from lawmakers Tuesday was that Twitter knowingly allowed the government of India to place its agents on the company payroll, where they had access to highly sensitive data on users. Twitter’s lack of ability to log how employees accessed user accounts made it hard for the company to detect when employees were abusing their access, Zatko said.

Zatko also accuses the company of deception in its handling of automated “spam bots,” or fake accounts. That allegation is at the core of billionaire tycoon Elon Musk’s attempt to back out of his $44 billion deal to buy Twitter. Musk and Twitter are locked in a bitter legal battle, with Twitter having sued Musk to force him to complete the deal. The Delaware judge overseeing the case ruled last week that Musk can include new evidence related to Zatko’s allegations in the high-stakes trial, which is set to start Oct. 17.

Sen. Charles Grassley, the committee’s ranking Republican, said Tuesday that Twitter CEO Parag Agrawal declined to testify at the hearing, citing the ongoing legal proceedings with Musk. But the hearing is “more important than Twitter’s civil litigation in Delaware,” Grassley said. Twitter declined to comment on Grassley’s remarks.

In his complaint, Zatko accused Agrawal as well as other senior executives and board members of numerous violations, including making “false and misleading statements to users and the FTC about the Twitter platform’s security, privacy and integrity.”

Zatko, 51, first gained prominence in the 1990s as a pioneer in the ethical hacking movement and later worked in senior positions at an elite Defense Department research unit and at Google. He joined Twitter in late 2020 at the urging of then-CEO Jack Dorsey.

Additional reporting by The Associated Press.

: newsy.com

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