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More On Terry’s GreenTech Blues

- July 24, 2013

MCAULIFFE'S COMPANY OBTAINED A VISA FOR A CHINESE EXECUTIVE WHOSE COMPANY IS ACCUSED OF SPYING FOR THE CHINESE GOVERNMENT

Gulf Coast Funds, A Company Closely-Linked With Terry McAuliffe, Is Ensnared In An Ongoing Federal Investigation. "A Virginia-based company that helped finance Terry McAuliffe's former auto manufacturing firm GreenTech has been identified as part of an investigation into a potentially problematic visa scheme, the Associated Press reported Tuesday." (Alexander Burns, "Report: DHS Probes Firm With Ties To Terry Mcauliffe," Politico, 7/23/13)

Alejando Mayorkas, President Obama's Choice For A Top Homeland Security Post, Is Being Investigated For Helping A Chinese Investor Obtain A Visa. "President Barack Obama's choice to be the No. 2 official at the Homeland Security Department is under investigation for his role in helping a company secure an international investor visa for a Chinese executive, The Associated Press has learned." (Alicia Caldwell, "AP Newsbreak: Homeland Security Official Probed," The Associated Press, 7/23/13)

Mayorkas Allegedly Helped Gulf Coast Funds Management, Which Is Run By Hillary Clinton's Brother, Win An Investor Visa (EB-5) Even After It Had Been Denied. "The probe is based on allegations that Mayorkas personally intervened to win an approval for Gulf Coast Funds Management, a financing company headed by Clinton's brother Anthony Rodham, after USCIS officials rejected its application, according to an aide to GOP Sen. Charles Grassley, who had received internal USCIS emails about the matter from a department whistleblower. (Michael Isikoff, "Obama Nominee Faces Investigation Involving Company Run By Brother Of Hillary Clinton," NBC , 7/23/13)

"GreenTech Is Currently The Only Project For Which [Gulf Coast] Is Handling EB-5 Funds." "Gulf Coast Funds Management was incorporated in Aug. 2008, and serves as the EB-5 regional center for Louisiana and Mississippi. [Gulf Coast Funds Management president Taylor] Beery said GreenTech is currently the only project for which it is handling EB-5 funds." (Clay Chandler, "GreenTech Largest Project To Depend On EB-5: Experts Not Sure Investors Will Be Interested In A Hybrid Vehicle Plant In Mississippi," Mississippi Business Journal, 10/19/09)

  • Gulf Coast Funds Management Lists GreenTech As Their Only "Current Project." "For more information about our current project, GreenTech Automotive, please visit their website." ( Gulf Coast Funds Website, Accessed 7/23/13)
  • According To Gulf Coast Funds Management's Form I-924A Filed With United States Customs And Immigration Services, GreenTech Is Gulf Coasts' Only Client. "Provide the following information for each job creating commercial enterprise located within the geographic scope of your regional center that has received EB-5 investor capital: GreenTech Automotive Partnership…" ("Form I-924A, Supplement To Form I-924," United States Customs And Immigration Services , 12/29/12)

Mayorkas And Gulf Coast Funds Management Allegedly Obtained A Visa For A Chinese Executive At Huawei - A Company Suspected Of Having Close Ties To The Chinese Military And Intelligence Services

The Visa At The Center Of The Investigation Was For A Vice President Of Huawei Technologies, A Chinese Telecommunications Firm. "The emails obtained by Grassley's office, which were shared with NBC News, show that, after winning approval to participate in the foreign visa program, at least one of the visas sought by Rodham's firm was for a vice president of Huawei Technologies, a Chinese telecommunications firm that has been investigated by the House Intelligence Committee over claims that it is closely tied to the Chinese intelligence services. Huawei Technologies has denied such charges." (Michael Isikoff, "Obama Nominee Faces Investigation Involving Company Run By Brother Of Hillary Clinton," NBC , 7/23/13)

Ren Zhengfei, Huawei's Founder, Is Retired People's Liberation Army (PLA) Officer With Suspected Ties To The PLA Signals Intelligence Division, And Is Believed To Have Continuing Connections With The Chinese Military Today. "Many industry analysts, however, have suggested otherwise; many believe, for example, that the founder of Huawei, Ren Zhengfei, was a director of the People's Liberation Army (PLA) Information Engineering Academy, an organization that they believe is associated with 3PLA, China's signals intelligence division, and that his connections to the military continue." ("Investigative Report On The U.S. National Security Issues Posed By Chinese Telecommunications Companies Huawei And ZTE," United States House Of Representatives, Permanent Select Committee On Intelligence , 10/8/12, P. 13-14)

  • Zhengfei Participated In Chinese Communist Party's 12th National Congress In 1982, Which Selected China's Leaders For The Next Decade. "Similarly, Huawei officials did not provide information about Mr. Ren's role or stature in the Party. In his official biography, Mr. Ren admits that he was asked to be a member of the 12th National Congress of the Communist Party of China in 1982. The National Congress is the once-in-a-decade forum through which the next leaders of the Chinese state are chosen. The Party members asked to play a role in China's leadership transition are considered key players in the state apparatus. Mr. Ren proudly admits that he was invited to that Congress, but he will not describe his duties. ("Investigative Report On The U.S. National Security Issues Posed By Chinese Telecommunications Companies Huawei And ZTE," United States House Of Representatives, Permanent Select Committee On Intelligence , 10/8/12, P. 23)

Sun Yafang, Huawei's Chairwoman, Is Believed To Have Previously Been Affiliated With The Chinese Ministry Of State Security. " Huawei similarly denied allegations that Ms. Sun Yafang, Chairwoman of Huawei, was previously affiliated with the Ministry of State Security. Mr. Ding responded to Committee questions after the hearing that, to his knowledge, reports about Ms. Yafang in Chinese publications, such as those in Xinjing Bao, are erroneous. Mr. Ding did not respond to questions asking about how such publications received such information, or whether Ms. Yafang's previous biography on the Huawei website was erroneous as well. ("Investigative Report On The U.S. National Security Issues Posed By Chinese Telecommunications Companies Huawei And ZTE," United States House Of Representatives, Permanent Select Committee On Intelligence , 10/8/12, P. 24)

  • "The CIA Says That Huawei's Chairman, Sun Yafang, Previously Worked For The Ministry Of State Security, China's Foreign Intelligence Service. (Christopher Joye, "Huawei Spies For China, Says Ex-CIA Head,"Australian Financial Review, 7/19/13)

In A July 2013 Interview, Former CIA And NSA Director General Michael Hayden Accused Huawei Of Spying For The Chinese Government. "The former head of the US Central ­Intelligence Agency and National Security Agency, Michael Hayden, believes Chinese telecommunications manufacturer Huawei Technologies is a significant security threat to Australia and the US, has spied for the Chinese government, and intelligence agencies have hard evidence of its activities." (Christopher Joye, "Huawei Spies For China, Says Ex-CIA Head," Australian Financial Review, 7/19/13)

  • Huawei Had Approached Hayden To Join Its Board Of Directors, "But God Did Not Make Enough Slides On Huawei To Convince Me That Having Them Involved In Our Critical Communications Infrastructure Was Going To Be OK." "General Hayden said he was approached to join Huawei's American board. "Two or three years ago Huawei was trying to establish a pretty significant footprint here," he said. "And they were trying to get people like me to endorse their presence in the US. "I reviewed Huawei's briefing paper. But God did not make enough slides on Huawei to convince me that having them involved in our critical communications infrastructure was going to be OK. This was my considered view, based on a four-decade career as an intelligence officer." (Christopher Joye, "Huawei Spies For China, Says Ex-CIA Head," Australian Financial Review, 7/19/13)

The House Select Committee On Intelligence Has Investigated Huawei And Urged U.S. Government Agencies And Private Companies To Avoid Doing Business With The Firm

A 2012 U.S. House Permanent Select Committee On Intelligence Report Found That Huawei Posed A Significant Security Threat, And Urged Government Agencies To Refrain From Doing Business With The Company. " The Committee on Foreign Investment in the United States (CFIUS) must block acquisitions, takeovers, or mergers involving Huawei and ZTE given the threat to U.S. national security interests. Legislative proposals seeking to expand CFIUS to include purchasing agreements should receive thorough consideration by relevant Congressional committees. U.S. government systems, articularly sensitive systems, should not include Huawei or ZTE equipment, including component parts Similarly, government contractors - particularly those working on contracts for sensitive U.S. programs - should exclude ZTE or Huawei equipment in their systems." ("Investigative Report On The U.S. National Security Issues Posed By Chinese Telecommunications Companies Huawei And ZTE," United States House Of Representatives, Permanent Select Committee On Intelligence , 10/8/12, p. vi)

The Committee Report Also Urged Private Companies To Avoid Doing Business With Huawei. "Private sector entities in the United States are strongly encouraged to consider the long-term security risks associated with doing business with either ZTE or Huawei for equipment or services. U.S. network providers and systems developers are strongly encouraged to seek other vendors for their projects. Based on available classified and unclassified information, Huawei and ZTE cannot be trusted to be free of foreign state influence and thus pose a security threat to the United States and to our systems." ("Investigative Report On The U.S. National Security Issues Posed By Chinese Telecommunications Companies Huawei And ZTE," United States House Of Representatives, Permanent Select Committee On Intelligence , 10/8/12, p. vi-vii)


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