Wednesday, February 5, 2025

Marko Elez, Elon Musk protege, has gained access to systems that control $5.45 trillion in federal payments, including Social Security checks, tax returns, and more

        

Marko Elez (The Economist)
 

A member of Elon Musk's youth corps of  "engineers," 25-year-old Marko Elez, has direct access to Treasury Department systems responsible for nearly all payments made by the U.S. government, according to a report at WIRED. Under the headline "A 25-Year-Old With Elon Musk Ties Has Direct Access to the Federal Payment System; The Bureau of the Fiscal Service is a sleepy part of the Treasury Department. It’s also where, sources say, a 25-year-old engineer tied to Elon Musk has admin privileges over the code that controls Social Security payments, tax returns, and more," Vittoria Elliott, Dehruv Mehrotra, Maria Feiger, and Tim Marchman write:

Two of those sources say that Elez’s privileges include the ability not just to read but to write code on two of the most sensitive systems in the US government: the Payment Automation Manager and Secure Payment System at the Bureau of the Fiscal Service (BFS). Housed on a secure mainframe, these systems control, on a granular level, government payments that in their totality amount to more than a fifth of the US economy.

Despite reporting that suggests Musk’s so-called Department of Government Efficiency (DOGE) task force has access to these Treasury systems on a “read-only” level, sources say Elez, who has visited a Kansas City office housing BFS systems, has many administrator-level privileges. Typically, those admin privileges could give someone the power to log in to servers through secure shell access, navigate the entire file system, change user permissions, and delete or modify critical files. That could allow someone to bypass the security measures of, and potentially cause irreversible changes to, the very systems they have access to.

“You could do anything with these privileges,” says one source with knowledge of the system, who adds that they cannot conceive of a reason that anyone would need them for purposes of simply hunting down fraudulent payments or analyzing disbursement flow.

"Technically I don't see why this couldn't happen," a federal IT worker tells WIRED in a phone call late on Monday night, referring to the possibility of a DOGE employee being granted elevated access to a government server. "If you would have asked me a week ago, I'd have told you that this kind of thing would never in a million years happen. But now, who the fuck knows."

What kind of problems could arise from such an intrusion, especially by a young man who might not know as much as he thinks he knows about federal systems? The scope of possible damage is enough to make the head swim. The WIRED team writes:

A source says they are concerned that data could be passed from secure systems to DOGE operatives within the General Services Administration. WIRED reporting has shown that Elon Musk’s associates—including Nicole Hollander, who slept in Twitter’s offices as Musk acquired the company, and Thomas Shedd, a former Tesla engineer who now runs a GSA agency, along with a host of extremely young and inexperienced engineershave infiltrated the GSA and  attempted to use White House security credentials to gain access to GSA tech, something experts have said is highly unusual and poses a huge security risk.

Elez, according to public databases and other records reviewed by WIRED, is a 25-year-old who graduated Rutgers University in 2021 and subsequently worked at SpaceX, Musk’s space company, where he focused on vehicle telemetry, starship software, and satellite software. Elez then joined X, Musk’s social media company, where he worked on search AI. Public Github repositories show years of software development, with a particular interest in distributed systems, recommendation engines, and machine learning. He does not appear to have prior government experience.

Elez did not immediately respond to a request for comment. The White House and Musk did not immediately respond to requests for comment.

Broadly speaking, the US government pays out money in one of two ways. Agencies like the Department of Defense and the US Postal Service are legally authorized to originate, certify, and issue payments on their own. The vast majority of payments, though—including federal tax returns, Social Security benefits, Supplemental Security Income benefits, and veteran’s pay—flow through the Federal Disbursement Services, which according to Treasury records paid out $5.45 trillion in fiscal year 2024. The Bureau of the Fiscal Service, a nonpartisan body, is charged with directing this money appropriately, moving it from government accounts to recipients. The Payment Automation Manager and the Secure Payment System are the mechanisms through which the money is paid out.

Control of those mechanisms could allow someone to choke off money to specific federal agencies or even individuals, a fear that Democrats have expressed about DOGE. On Monday, Senate Democrats warned of DOGE’s encroachment into the payment system. “Will DOGE cut funding to programs approved by Congress that Donald Trump decides he doesn’t like,” said Senator Chuck Schumer of New York. “What about cancer research? Food banks? School lunches? Veterans aid? Literacy programs? Small business loans?”

The fight over whether DOGE could access Treasury systems led to a previously reported standoff between acting Treasury secretary David Lebryk and Musk’s associates. Lebryk was placed on administrative leave last week and subsequently resigned.

“Lebryk’s resignation set an example,” a source tells WIRED. “Any idea of resistance or noncompliance seems to be fading in the wake of that, and everything I have heard from leadership suggests they intend to give the ‘DOGE’ operatives what they are asking for.”

Tuesday, February 4, 2025

Elon Musk's youthful "engineers" installed a commercial server to access federal employees' data, raising questions of criminal exposure, civil liability

Do you want your Social Security in Elon Musk's hands? (X)

"Engineers" who helped Elon Musk take control of government employees' personal data did it by illegally installing a commercial server to access the information, according to a report at The New Republic (TNR). To top it off, these literally were "whiz kids," mostly in the 19 to 24 age range. Under the headline "Elon Musk Installs Illegal Server to Seize All Federal Workers’ Data; Elon Musk’s DOGE henchmen are helping him make his most terrifying power grab yet."

The questions of the moment: Did Musk and his underlings engage in criminal activity? Could they be civilly liable for damages to the federal employees? We don't yet have a clear-cut answer to those questions, but trespass to chattels and various forms of identity theft could be in play. fbi.gov has a trove of information about data theft and related crimes:

Understand Common Crimes and Risks Online

  • Business email compromise (BEC) scams exploit the fact that so many of us rely on email to conduct business—both personal and professional—and it’s one of the most financially damaging online crimes.
  • Identity theft happens when someone steals your personal information, like your Social Security number, and uses it to commit theft or fraud.
  • Ransomware is a type of malicious software, or malware, that prevents you from accessing your computer files, systems, or networks and demands you pay a ransom for their return.
  • Spoofing and phishing are schemes aimed at tricking you into providing sensitive information to scammers.
  • Online predators are a growing threat to young people.
  • More common crimes and scam

 The website currentware.com provides insights about the problem of data theft under the headline "5 of the Worst Examples of Data Theft by Employees." Here is a key section from the article:

The 2020 Verizon Data Breach Investigations Report found that 86% of all data breaches are financially motivated. This motivation is very much prevalent in instances of employee data theft.

Everyone knows just how valuable a company’s data can be, and in the cases you’ll see below, many employees know that they can receive a hefty sum of cash if they’re able to steal it and sell it.

Employee data theft is especially likely when an employee is experiencing financial stressors in their life. They are more likely to accept bribes from malicious third parties, consider selling sensitive data to threat actors, or steal intellectual property to gain favor with a competing company.

In addition to stealing data for financial gain, employees in financial distress are more likely to engage in illegal activities such as money laundering and financial fraud. As such, an insider threat program should consider the addition of an anti-money laundering and counter-terrorism financing (AML/CFT) component.ras

Here is more from TNR's article on Elon Musk and his youthful sidekicks. Hafiz Rashid writes: 

Elon Musk has taken control of government employees’ private data by having his cronies illegally install a commercial server at the Office of Personnel Management.

Musk and his handpicked associates at the fake “Department of Government Efficiency” are using their ill-gotten access to control federal databases containing Social Security numbers, home addresses, medical histories, and other sensitive personal information, according to journalists Caleb Ecarma and Judd Legum at Musk Watch.

Many of these Musk staffers are young people between 19 and 24, such as software engineer Akash Bobba, an undergraduate student at University of California, Berkeley, and 2022 high school graduate Edward Coristine. At Musk’s direction, these inexperienced underlings now have access to the private information of every federal employee, and even people who have merely applied to federal jobs.

Musk’s people were given access to the federal government’s official hiring site USAJOBS, where people hoping to secure a federal job often enter their personal information including Social Security numbers, home addresses, and employment records, in their applications. They also gained access to the Enterprise Human Resources Integration, or EHRI, system, which contains Social Security numbers, dates of birth, salaries, home addresses, job descriptions, and disciplinary records of every single federal employee.

“They’re looking through all the position descriptions … to remove folks,” said one OPM employee about Musk’s team. “This is how they found all these DEI offices and had them removed—[by] reviewing position description level data.”

In addition, the DOGE staffers also have access to systems relating to onboarding, job performance reviews, and even the system the government uses to manage employee health care, which could violate laws on protected health information, such as HIPAA.

“What [Musk is] doing will put so many government employees at risk. It’s not at all what the office is intended for,” a former OPM director told Musk Watch. “I just can’t believe what I’m seeing.”

The unprecedented access also leaves federal employee data unsecured and vulnerable to hackers, said one OPM employee. One of the new email lists created by Musk’s people was already hit by a flood of spam emails last week.

The potential for invasion of privacy is virtually endless. In fact, invasion of privacy is a tort for which people can be sued. And that is where an international component can enter the pictures. From the TNR report:

“China and Russia are literally trying to hack us every day, and we just gave all this data over to somebody that’s not been properly vetted,” one of the OPM staffers said. “It’s not just Amanda Scales, it’s all the [political appointees] in that office right now. So it’s multiple vulnerability points.”

Many senior government officials have been locked out of EHRI and OPM, and thus can’t track what changes have been made by DOGE cronies. They could be doing irreparable damage to the federal civil service in their attempts to thin it out, with few, if any, ways of finding out what they’re doing. It kind of makes Hillary Clinton’s storing of government data on a private email server look rather quaint, doesn’t it? 


Monday, February 3, 2025

Trump's retribution tour is in high gear, tossing senior FBI officials aside and terminating prosecutors who assisted Jack Smith in cases involving The Prez

Kash Patel and Sen. Adam Schiff square off at hearing.
 

Americans who thought Donald Trump was not serious about seeking retribution against people he perceives wronged him might want to rethink that. The New York Times, under the headline "Top officials have been told to retire or be fired in the coming days, fueling fear within an agency that has been a target of President Trump and Kash Patel, his nominee to be F.B.I. director," provides evidence that Trump's retribution tour is gaining steam, rather than slowing down. That, however, does not mean the Trump scheme is lawful. We already have pointed to signs that it is, in fact, unlawful, and we will further examine that issue in upcoming posts.

Times' reporters Adam Goodman and Devlin Barrett write:

The Justice Department’s campaign of retribution against officials who investigated President Trump and his supporters accelerated late Friday with the firing of more than a dozen federal prosecutors at the U.S. attorney’s office in Washington, according to a department memo. The Trump administration also plans to examine scores of F.B.I. agents involved in investigations into the Jan. 6 attack on the Capitol, setting up a potential purge of the bureau, according to people familiar with the matter. 

The Trump administration plans to scrutinize thousands of F.B.I. agents involved in Jan. 6 investigations, setting the stage for a possible purge that goes far beyond the bureau’s leaders to target rank-and-file agents, according to internal documents and people familiar with the matter.

The proposal came on a day that more than a dozen prosecutors at the U.S. attorney’s office in Washington, who had worked on cases involving the Jan. 6 riot, were told that they were being terminated.

The moves were a powerful indication that Mr. Trump has few qualms deploying the colossal might of federal law enforcement to punish perceived political enemies, even as his cabinet nominees offered sober assurances they would abide by the rule of law. Forcing out both agents and prosecutors who worked on Jan. 6 cases would amount to a wide-scale assault on the Justice Department.

On Friday, interim leaders at the department instructed the F.B.I. to notify more than a half-dozen high-ranking career officials that they faced termination, according to a copy of an internal memo obtained by The New York Times.

Individuals who used to be Trump's personal lawyers appeared to be leading the assault against some of the FBI's most senior officials. From The Times' report:

The acting deputy attorney general, Emil Bove, also told the acting leadership of the F.B.I. to compile a list of all agents and F.B.I. staff “assigned at any time to investigations and/or prosecutions” relating to the events at the Capitol on Jan. 6, 2021 — the day a mob of Trump supporters stormed through the halls of Congress.

In issuing his directive, Mr. Bove, who has overseen an opening volley of threats, firings and forced transfers since the inauguration, cited Mr. Trump’s executive order vowing to end “the weaponization of the federal government.”

Under President Joseph R. Biden Jr., the government waged a “systematic campaign against its perceived political opponents,” including by deploying law enforcement to pursue its rivals, he said.

The memo also demands the names of agents who worked on a case against Hamas leadership, though it is not clear why it was added to the list of agents under scrutiny. Prosecutors and agents had disagreed about the merits of the case.

The office of the deputy attorney general “will commence a review process to determine whether any additional personnel actions are necessary” against those F.B.I. agents, analysts and staff, according to the memo, which was addressed to Brian Driscoll, the acting F.B.I. director.

In an email to F.B.I. employees Friday night, Mr. Driscoll noted that he was among the agents who would be on such a list. The F.B.I. has been told to submit the list of names by Tuesday.

“We understand that this request encompasses thousands of employees across the country who have supported these investigative efforts,” Mr. Driscoll wrote, who added that he and his deputy “are going to follow the law, follow F.B.I. policy and do what’s in the best interest of the work force and the American people — always.”

Later, the F.B.I.’s counterterrorism division sent an email to field offices around the country with instructions about filling a database with bureau personnel who worked on the cases — a number likely to be about 6,000.

People familiar with the internal discussions said that some Trump administration officials are moving to force scores, or possibly hundreds, of agents out of the F.B.I. in the coming days and weeks. Officials have discussed notifying a large number of agents that they face possible termination, demotion or transfer.

What kind of repercussions are such directives having? The Times reports:

At the U.S. attorney’s office in Washington, more than a dozen prosecutors who had worked on Jan. 6-related cases were told that they were being terminated, according to people familiar with the notices.

Those informed of their dismissals had been hired as the office struggled to manage what became the largest prosecution in the department’s history.

In another memo, Mr. Bove said the prosecutors in question had been short-term hires that were improperly made permanent staff during the Biden administration. “I will not tolerate subversive personnel actions,” he wrote.

Mr. Bove offered no evidence those targeted had done anything improper, illegal or unethical. Instead, he cited a legal technicality and questioned whether those targeted would allow the U.S. attorney’s office to “faithfully implement the agenda that the American people elected President Trump to execute.”

The moves come just one day after Kash Patel, Mr. Trump’s pick to lead the F.B.I., testified before Congress that the bureau would not be targeted for political reasons.

“All F.B.I. employees will be protected against political retribution,” Mr. Patel said during his confirmation hearing on Thursday.

Around the time that Mr. Patel appeared before the committee, a handful of senior F.B.I. employees were informed that they needed to resign in a matter of days or be fired, part of a broader effort by the Trump administration to shake up the agency’s upper ranks.

The moves are highly unusual in part because they are happening before a director has been confirmed to take charge of the bureau. The timing of these moves — made while the nominations of Mr. Patel and Pam Bondi for attorney general are still pending — could lessen the blowback for them — or it could jeopardize their support among Republican senators.

A department spokesman, and Mr. Patel’s representative, did not immediately respond to requests for comment. F.B.I. officials declined to comment. The people familiar with the planning spoke on the condition of anonymity to describe internal discussions.

In a statement, the F.B.I. Agents Association said that if true, “these outrageous actions by acting officials are fundamentally at odds with the law enforcement objectives outlined by President Trump.”

“Dismissing potentially hundreds of agents would severely weaken the bureau’s ability to protect the country from national security and criminal threats,” the statement continued.

If the administration follows through, it would be a singular moment in the F.B.I.’s history, and fly in the face of decades worth of civil service laws that are meant to protect the integrity and professionalism of the government work force."

Mr. Patel, speaking under oath, also promised to follow established bureau procedures in seeking terminations or transfers, including referring accusations of improper conduct by prosecutors to the Justice Department’s inspector general before taking action.

F.B.I. officials were already bracing for swift changes, but the forced retirements and the dismissal of senior agents in the field and at headquarters this week has led to immense unease. Agents are worried that they will be fired for investigations that angered Mr. Trump — especially those who worked on squads at the Washington field office on the criminal inquiry into Mr. Trump’s handling of classified documents as well as the inquiry into a fake electors’ scheme.

Two of the senior agents who ran field offices in Miami and Las Vegas and were forced out had been criticized by former agents with ties to Mr. Patel’s foundation, a nonprofit that Mr. Patel has said gives aid to a range of recipients, including the families of those charged in the Jan. 6 riot.

Some F.B.I. personnel expressed frustration that the bureau’s leadership provided little guidance as rumors circulated widely about firings and about colleagues being escorted out of field offices. Mr. Driscoll’s email Friday night ended some of that confusion, though it confirmed some of their deepest fears.

Jason Manning, a former federal prosecutor who worked on Jan. 6 cases, warned of the consequences.

“It will mean firing agents who investigate child sex crimes, violent crimes, immigration crimes, Chinese espionage and lots of other criminal activity that President Trump claims to care about,” he said. “Our country is significantly weaker and more dangerous because of this.”

The disarray in the bureau was also evident on its website, which notably omitted the name of the acting director, Mr. Driscoll. Inside the bureau, one person said that the atmosphere was sullen and that employees were startled by what was unfolding as top F.B.I. officials scrambled to complete the required retirement paperwork, with the agents turning in their badges.

Mr. Driscoll and Robert C. Kissane, his acting deputy, said goodbye to their colleagues.

In an interview, Democratic lawmakers denounced the moves.

“They are hollowing out our professional law enforcement community,” said Senator Richard Blumenthal of Connecticut, a Democrat who questioned Mr. Patel at the confirmation hearing. “It is the absolute height of arrogance to be doing exactly what their F.B.I. nominee promised not to do.”

Retribution has been swift at the Justice Department as about a dozen prosecutors who worked on the two criminal investigations into Mr. Trump for special counsel Jack Smith were fired.

Mr. Trump once called the Jan. 6 riot a “heinous attack,” but in one of his first official acts, he granted sweeping clemency to all of the nearly 1,600 people charged in the assault. He issued pardons to most of the defendants and commuted the sentences of 14 members of the Proud Boys and the Oath Keepers militia, most of whom were convicted of seditious conspiracy.

During Mr. Patel’s testimony on Thursday, Senator John Kennedy, Republican of Louisiana, told Mr. Patel that lawmakers would hold him accountable if he tried to exact revenge at the F.B.I., saying two wrongs did not make a right.

“And there have been and may still be some bad people there, and you’ve got to find out who the bad people are and get rid of them, in accordance with due process and the rule of law,” Mr. Kennedy said. “And then you’ve got to lift up the good people. Don’t go over there and burn that place down. Go over there and make it better.”

The F.B.I. has been in turmoil since Christopher A. Wray, the former director, stepped down before Mr. Trump took office. After Mr. Wray’s deputy abruptly resigned and shortly after Mr. Trump took office, the administration identified the wrong agent as acting director.

Instead of correcting the error, officials kept it in the hope that a new director would be quickly confirmed, The Wall Street Journal earlier reported.

Mr. Kissane, who had been the top counterterrorism agent in New York, had been widely believed to be in line to be acting director, several current and former agents said, with Mr. Driscoll, a decorated agent in the F.B.I.’s New York field office as the No. 2. But when the White House unveiled its website after Mr. Trump was inaugurated, Mr. Driscoll was named in the top job.

Mr. Patel, speaking under oath, also promised to follow established bureau procedures in seeking terminations or transfers, including referring accusations of improper conduct by prosecutors to the Justice Department’s inspector general before taking action.

Two of the senior agents who ran field offices in Miami and Las Vegas and were forced out had been criticized by former agents with ties to Mr. Patel’s foundation, a nonprofit that Mr. Patel has said gives aid to a range of recipients, including the families of those charged in the Jan. 6 riot.

Some F.B.I. personnel expressed frustration that the bureau’s leadership provided little guidance as rumors circulated widely about firings and about colleagues being escorted out of field offices. Mr. Driscoll’s email Friday night ended some of that confusion, though it confirmed some of their deepest fears.

Big question: Who gave Musk and his allies access to a government building and to sensitive government documents, filled with personal info on employees? Why does somebody want Musk to have that information? More details ahead in an upcoming post.

Trump is gutting the ranks of senior officials at the FBI, many of whom were involved in high-profile cases, including the investigations under Jack Smith

(NBC News)
 

As founder of this progressive blog, which is approaching its 18th year of continuous publication (Legal Schnauzer launched on June 3, 2007), I never considered trusting the U.S. presidency to Donald Trump. His manifest shortcomings, including a lack of temperament and intellect to handle the job, were obvious to me (and many of my readers), long before election day on Nov. 5, 2024. I wouldn't have trusted Trump to lead us anywhere, except maybe over a cliff. Now, it looks like our over-the-cliff moment might be here before even the most ardent anti-Trumpers expected it. Events of the past four days have caused a foul odor to emanate from TrumpLand. It is so foul that MAGAs -- and other White right-wing types, who largely are responsible for Trump's return to the White House, even though we had four years' of evidence from a first term that he couldn't handle the job -- would be wise to set aside their faith in Trump and pay attention to the mounting evidence that something nasty, maybe dangerous, is going on with the Trump administration.

The first such sign came last Friday (1/30/25), with publication of a New York Times report under the headline "Trump Administration Shocks Senior F.B.I. Ranks by Moving to Replace Them; Top officials have been told to retire or be fired in the coming days, fueling fear within an agency that has been a target of President Trump and Kash Patel, his nominee to be F.B.I. director. Reporters Adam Goodman and Devlin Barrett write:

A handful of senior F.B.I. employees have been told to resign in a matter of days or be fired, as the Trump administration moves to shake up the agency’s upper ranks, according to people familiar with the discussions.

The steps came as Kash Patel, the president’s nominee to lead the agency, sought to assure lawmakers during a contentious, hourslong Senate confirmation hearing that he would not begin a campaign of retribution or look backward by pursuing perceived rivals. It is unclear whether he was informed of the decisions, which were disclosed on the condition of anonymity to describe personnel matters.

The employees given the apparent ultimatum had been promoted under Christopher A. Wray, who stepped down as F.B.I. director this month.

In an email to colleagues, one of the senior agents said he had learned he would be dismissed “from the rolls of the F.B.I.” as soon as Monday morning.

“I was given no rationale for this decision, which, as you might imagine, has come as a shock,” he wrote.

The ultimatum came as the FBI has been going through a stage of upheaval after the resignation of Director Christopher Wray, who Trump appointed to the position. Goldman and Barrett write:

Senior F.B.I. agents had been bracing for potentially swift changes under President Trump given Mr. Patel’s past promise to reshape the institution. He has vowed to empty out the F.B.I. headquarters building and turn it into a museum.

The move is remarkable in part because it is happening before a director has been confirmed to take charge of the bureau, and the quick and unexpected nature of the requests has left employees badly shaken.

F.B.I. directors have more latitude than most agency chiefs they place into senior positions, but they typically make changes gradually. Until senators vote on Mr. Patel’s nomination, Brian Driscoll is the bureau’s acting director.

The decision by the Trump administration echoes the moves rapidly underway at the Justice Department, where career prosecutors, including top officials who hold significant sway over how the agency makes charging decisions, have been reassigned or fired.

At the F.B.I., some of the senior officials who have been asked to leave are at headquarters while others work in the field. Some have already taken steps to retire and exit the agency, including an agent who worked on the F.B.I.’s investigation into Russian interference in the 2016 election, and another who oversaw an investigation into Mr. Trump’s handling of classified documents.

A person familiar with the personnel changes said the top agent at the Washington field office, the second-largest in the bureau, was also given an ultimatum on Thursday. He had planned to retire, though he intended to stay longer at the bureau to help with the transition. But his plans were cut short.

Still more are worried they will be pushed out of the agency or demoted.

During Mr. Patel’s confirmation hearing, Senator Cory Booker raised the abrupt dismissals of nearly a dozen career prosecutors at the Justice Department who worked on the criminal investigations into Mr. Trump under the special counsel Jack Smith and whether similar moves would extend to the F.B.I.

“Are you aware of any plans or discussions to punish in any way, including termination, F.B.I. agents or personnel associated with Trump investigations?” asked Mr. Booker, Democrat of New Jersey, after reminding Mr. Patel that he was under oath.

Stating that he had not been involved in the decisions at the Justice Department, Mr. Patel replied, “I am not aware of that, Senator.”

CNN earlier reported that F.B.I. officials had been demoted or resigned.

Are the actions noted above the only signs that something foul, maybe illegal, has taken root in the Trump administration? No, and we will be examining others in upcoming posts. Given that Trump is a convicted felon, adjudicated rapist, confessed sexual abuser, and marital cheater (with a porn star, while his wife was home tending to an infant) no American should be surprised at what Trump might pull next.)