December 2004 - cypherpunks-legacy

DOJ: IRS Summons are unenforceable. (fwd)
by J.A. Terranson 24 Dec '04

24 Dec '04

This just gets weirder and weirder! In their attempt to prevent the Petition, DOJ is asserting that the IRS is essentially a non-entity. Except when they take you to prison. Or something like that... -------------------------------------------------------------------- http://www.givemeliberty.org/RTPLawsuit/update04-Dec-22.htm In Defense of the Petition Clause: Battles Now Underway on Three Fronts 2nd Circuit Directs DOJ to Explain Lack of IRS Summons Enforcement Authority As is now widely known, since July of 1999 the We The People organization has led a nationwide legal and educational attack on the federal government, utilizing the force of .popular constitutionalism.. This assault has come in the form of an intelligent and rational exercise of the First Amendment Right to Petition for Redress of Grievances, relating to the government.s imposition of an unconstitutional, direct, un-apportioned tax on labor. What is also known is that in November of 2002, three additional Petitions for Redress were added to the People.s overall Petition process. These Petitions are related to the Constitution.s war powers clauses versus the Iraq Resolution, the privacy and due process clauses versus the USA Patriot Act, and the money and debt limiting clauses versus the Federal Reserve System. It is also widely known that the People.s Petitions for Redress have been legally served on the highest ranking officials of the Executive and Legislative branches of the federal government, including the President and leadership of the Congress and every member of Congress, the Attorney General, Treasury Secretary, and Commissioner of the IRS. Undoubtedly, these officials know about the We The People Foundation and the Petitions for Redress of Grievances. What.s more, with dismay, the People watched their servant government.s reaction: they have seen the government trespass on the People.s First Amendment Right to Petition by striking out against the Petitioners -- infringing on that unalienable Right, rather than respond by answering their questions. The People decided to fight back . to defend against this invasion of their Right to Petition. Nearly two thousand joined the fight this year by becoming named plaintiffs in the lawsuit aimed at getting the federal courts to declare the meaning of the Right to Petition, including the Right of the People to retain their money until their grievances are redressed if the government decides not to properly and honestly respond as the Constitution commands. What has not been widely known is that parallel battles in defense against the government.s invasion of the People.s Right to Petition are now being fought on a total of three judicial fronts by the We The People organization. What follows is an update of the primary lawsuit and breaking news regarding significant developments in a related case that has reached the 2nd Circuit Court of Appeals. This second case was brought by Chairman Bob Schulz, as the sole plaintiff, against the IRS. We will discuss the third case in a future article. Ed. Note: Many of the following linked .PDF documents are large. It is suggested that you RIGHT-CLICK to Save (i.e., download) the files to your computer before attempting to open them using the (free) Adobe Reader software. Update -- The Primary Battle: We The People v. The United States On July 19, 2004, this case was initiated in the U.S. District Court in the District of Columbia. An Amended Complaint was filed in early September. On September 30, 2004, as we had previously reported, the government filed a Motion to Dismiss our complaint. On November 12, 2004, Mark Lane and Bob Schulz filed a Memorandum in Opposition to the government.s motion to dismiss. We asked constitutional scholar and attorney John Wolfgram to review and comment on our Opposition memorandum. Wolfgram called the Memorandum .Splendid.Brilliant.. Click here for Wolfgram.s comments. Wofgram is the author of the article, .How the Judiciary Stole the Right To Petition,. which was published in 31 U. WEST L.A. L. REV. (Summer 2000). Wolfgram has a B.A. Degree (University of Wisconsin) and a J.D. Degree (Southwestern University 1977). Wolfgram founded the Constitutional Defender Association in 1989 to advance Petition Clause Principles. Its name derives from the observation that the practical value of a Constitution depends on the effective enforcement of constitutional rights and limits against government, by the people. Wolfgram argues that the Petition Clause is the People's Right to redress government violations of the Constitution - the Constitution's Defense system against government usurpation and oppression. According to the rules of the U.S. District Court for the District of Columbia, the government had until November 17, 2004 to reply to our Memorandum in Opposition to the government.s Motion to Dismiss. However, DOJ filed a Motion for more time, due in part, to .the gravity of the relief sought.. We thought this to be an odd reason because the only relief we are seeking is a declaration of our Rights under the Petition Clause of the First Amendment, and an end to unconstitutional retaliation against those who Petition for Redress. However, the court granted the request. DOJ's reply is due today, December 22, 2004. After reading the government.s motion to dismiss our complaint, our Memorandum in Opposition (dated 11/12/04), and the government.s reply (due 12/22/04), the court will decide to deny or grant the government.s motion to dismiss. If the court denies the government.s motion to dismiss, the government may appeal that decision to the U.S. Court of Appeals. If the government does not appeal the court.s denial of its motion to dismiss, the case will move to the discovery phase, in advance of trial. On the other hand, if the court grants the government.s motion to dismiss, we will appeal to the U.S. Court of Appeals. On November 12, 2004, Mark Lane and Bob Schulz filed a Motion to Amend our complaint, in order to add hundreds of named plaintiffs, to narrow the issues and to cure a minor issue in our complaint. The government has opposed our Motion to Amend the complaint and we have replied to the government.s opposition. We are also awaiting the court.s decision on our Motion to Amend. Right-Click to download the Second Amended Complaint. A Second Front: Schulz v. IRS A second front has been established in the People.s defense against the government.s invasion of our First Amendment Right to Petition. Bob Schulz has sued the IRS for interfering with his Right to Petition for Redress. The government decided to retaliate against the leaders of the Petition process, including Bob Schulz in his personal capacity and as Chairman of the WTP organization. The government served Schulz with a Summons, demanding that Schulz turn over certain personal records to the IRS. Schulz immediately sued the IRS in the US District court. In his complaint, Schulz asked the Court to quash the IRS Summons on the grounds that the IRS did not have a legitimate purpose, that the IRS was infringing on his First Amendment Right to Petition and his Right to associate with others of like mind, and that the Summons was nothing more than harassment and impermissible retaliation. Right-click here for the Memorandum of Law. The IRS, as defendant, did not respond to the lawsuit. They never made an appearance in District Court! Eventually, Schulz motioned the District Court for a default judgment. The District Court issued its decision, holding that the court was prevented by law from quashing an IRS Summons. Schulz immediately appealed to the US Court of Appeals for the Second Circuit (see Schulz.s Appellant Brief). The IRS, through its attorney, the U.S. Department of Justice, decided to make an appearance in the court of Appeals. DOJ, through its Senior Counsel, Robert Storch, filed a Respondent.s Brief. Schulz filed his Reply Brief. Oral argument was held last week on December 13, 2004. At oral argument, DOJ argued that the District Court lacked jurisdiction and could not quash the Summons served on Schulz because the Summons legally meant nothing. Ironically, in order to scuttle Schulz.s case by asserting lack of jurisdiction, and to avoid a judicial skirmish directly debating the Summons authority of the IRS, DOJ argued before the three appellate justices that the IRS Summons was legally .unenforceable,. therefore Schulz was under no legal obligation to respond to it, denying the court subject matter jurisdiction. Schulz disagreed. He argued that Reisman was dispositive, that in Reisman, the US Supreme Court recognized the jurisdiction of the federal courts in such matters, by declaring the right of a person served with an IRS Summons to respond to the Summons by taking the IRS to a US District Court. Schulz also argued that under Powell, the IRS was required to appear in court to prove its purpose in issuing the Summons was a legitimate purpose. Finally, Schulz argued that the court had jurisdiction on the ground that the Summons was, in fact, an IRS .enforcement action. with significant adverse, statutorily prescribed consequences (including arrest for contempt), if he either ignored the Summons or failed to give the IRS what it was demanding of Schulz. See IRC Sections 7604 & 7210. During argument, one of the justices inquired of Storch, .If there is no legal obligation to respond to IRS Summons, then why didn't the IRS simply print a disclaimer on the Summons itself informing people that they did not have to respond to the Summons?. Storch could not answer the question. In a highly unusual move, the appellate court ordered DOJ to submit a memorandum to the Court by December 23, 2004, further explaining to the court why DOJ believes people do not have to respond to IRS Summons, why people will suffer no consequences if they ignore such Summons, and why the court is without power to grant Schulz.s request to quash the Summons. In response, Storch, the Senior Counsel in the office of the US Attorney, repeatedly asserted he did not understand this area of the law and would have to engage IRS officials to draft the Memorandum requested by the Court. RIGHT-Click here to save (download) a copy of the audio file containing the oral arguments made by Schulz and the DOJ before the 2nd Circuit Court of Appeals on December 13, 2004 to your computer. The Third Front A third battle in defense against the government.s attempt to seize power from the People by acting without authority, and in defense of the People.s Right to Petition is now being waged. This battle also involves the practical application and legal enforcement of the Right to Petition by withholding taxes. Specifically, the case involves property taxes and the commitment of seven families who have "bet the farm" in defense of their constitutionally protected Rights. We will provide details in a future article. Just The Beginning Although we have made considerable progress since our primary judicial work commenced just months ago, and it appears the government is having measured difficulty with our efforts thus far, we want to remind everyone that our battle to secure the Right to Petition -- and restore Constitutional Order -- will likely be long, and without doubt, very costly. Although many are fighting hard and sacrifices have been made, there remains much to be done -- including moving the District Court for Injunctive protections for all the lawsuit Plaintiffs, generating a critical mass of public awareness, and defending our Rights through trial Court, the Courts of Appeal, and through to the Supreme Court. We ask each of you to help us remain focused on our common objectives and strategies and share, as you are able, in the substantial burdens of this landmark, righteous, and necessary cause. Please consider a year-end, tax-deductible donation so that you and your family may soon enjoy Freedom as our Founders and our Creator intended. PLEASE REMEMBER DICK SIMKANIN After four requests for more time, Simkanin's attorney is apparently about ready to file his Brief on Behalf of Appellant Simkanin. One would argue that it is better to take the time to prepare a persuasive and winning argument than to rush the appeal brief and fall short. Although it shocks the senses to consider what Dick Simkanin and his wife Carol have endured in defense of Liberty, Dick's sprit remains very strong and positive. He has asked us to remind people not to forget him and that he always looks forward to "mail call". Please consider dropping Dick a note. Dick's address is: Richard Michael Simkanin 30383-177 Unit F FEDERAL CORRECTIONAL INSTITUTION P.O. BOX 7000 TEXARKANA, TX 75505-7000 Join the RTP lawsuit as a Plaintiff and learn about the long-forgotten Right to Petition. in the Lawsuit Information Center. Remember, there is NO cost to become a Plaintiff.

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Camera Phone Criminals Targeting Holiday Shoppers
by R.A. Hettinga 23 Dec '04

23 Dec '04

<http://www.local6.com/print/4019956/detail.html> local6.com Camera Phone Criminals Targeting Holiday Shoppers Identity Theft Is Fastest Growing Crime In Florida POSTED: 6:36 am EST December 23, 2004 UPDATED: 6:54 am EST December 23, 2004 ORLANDO, Fla. -- Thieves armed with camera cell phones are using the devices to steal credit card numbers, bank account numbers and even ATM numbers from holiday shoppers, according to a Local 6 News report. Police said that criminals who are able to get close enough to a person's personal information can snap a photo of the card or bank account number, and steal the number. Orange County sheriff's deputies said they are aware of the latest identity theft -- the fastest growing crime in Florida. "It's real easy to capture someone's information by standing behind somebody, pointing to where they can get personal information," Orange County sheriff's spokesman Carlos Torres said. "As the technology gets more advanced, criminals get more advanced with it." Police said whatever information a shopper pulls out in public is subject to being photographed and used to a criminal's advantage, Local 6 News reported. Central Florida resident Robert Devers said his aunt was likely the victim of a camera phone criminal. "My aunt's ATM account was wiped out, because someone was able to get a hold of her PIN number," Devers said. There have been no arrests in connection with Devers case. -- ----------------- R. A. Hettinga <mailto: rah(a)ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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[ISN] Robbers' quandary: Getting rid of the cash
by InfoSec News 23 Dec '04

23 Dec '04

http://news.bbc.co.uk/1/hi/business/4117961.stm By Gavin Stamp BBC News business reporter 22 December, 2004 Pulling off one of the largest and most daring cash robberies of all time is one thing. Disposing successfully of the loot and enjoying the benefits is another matter. For the criminals who have made off with more than #20m from the headquarters of Northern Bank in Belfast, the problems may only just be beginning. Firstly, they will have to contend with the huge worldwide publicity that their heist has generated. 'Massive headache' Police in the United Kingdom and across Europe will be hot on their trail while shopkeepers from Ballymena to Brighton will be alert to any large or unusual purchases for the next few weeks. Secondly, the sheer size of the robbers' hoard could turn out to be a millstone around their necks. Getting rid of #20m without causing huge suspicion is likely to tax even the most resourceful and determined of criminal minds. Not only do the stolen notes each have their own serial number, making them easy to identify but the majority are denominated in Northern Ireland currency. Although this is accepted throughout the United Kingdom, far fewer notes of this type tend to be in circulation outside Northern Ireland, making any effort to disperse them in England more risky. "They have a massive headache," says John Horan, a money laundering expert with accountants Harbinson Mulholland. "To some extent, they have been the victims of their own success." Furthermore, the laws governing reporting of suspicious money flows have been tightened up over the past two years, making it far harder for the criminals to discreetly invest their loot in a piece of real estate or an Old Master. Suspicious minds While banks have always had a legal responsibility to report suspicions of potential money laundering, the Proceeds of Crime Act passed in 2003 has extended this obligation to a whole raft of businesses and professionals. "If they're thinking of buying property, that's a bad idea because property developers, estate agents and conveyancing lawyers are regulated and all have an obligation to report their suspicions," says Mr Horan. "Thinking of buying a Matisse or a nice Rembrandt? That's a bad idea too because high value dealers such as auction houses are also regulated." The robbers still have a number of options, money laundering experts agree, although they are limited. If they plan to keep the money within the United Kingdom without resorting to burying it, setting up a front company is the most likely option. "They can set up a fake company which can be used to nominally provide services and invoices for those services," says Trevor Mascarenhas, a partner at Phillipsohn Crawfords Berwald, a law firm specialising in fraud and money laundering. "They can then take the cash and put it through the system, paying tax on what they purport to provide and try to legitimise the money." Overseas options To do this successfully, says Mr Horan, they would need the assistance of an expert money launderer who would expect to take a major cut of the proceeds. More likely, however, is that the robbers will attempt to smuggle the money out of United Kingdom in multiple consignments so as not to jeopardise the entire haul. Drug laundering organisations in South America and Russian criminal gangs operating across Europe may provide a ready conduit for the money, channelling it through banks willing not to ask too many questions. According to Ian Hopkins, a senior consultant with corporate investigators Carratu International, Colombia is one destination the robbers may consider. "There are places like that which are not too concerned where the money comes from. There are banks which will take their 2% to 3% and deal with the rest of the money." The money could even ultimately find its way back into the British economy through offshore businesses and accounts. Whatever the fate of the money, most experts believe the robbers may have taken on more than they can chew. "I would be very surprised if they expected to steal #20m," says Mr Hopkins. "It is like the Great Train Robbery. They are likely to be surprised and not a little panicked about how much they have got." _________________________________________ Open Source Vulnerability Database (OSVDB) Everything is Vulnerable - http://www.osvdb.org/ --- end forwarded text -- ----------------- R. A. Hettinga <mailto: rah(a)ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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[ISN] Robbers' quandary: Getting rid of the cash
by InfoSec News 23 Dec '04

23 Dec '04

http://news.bbc.co.uk/1/hi/business/4117961.stm By Gavin Stamp BBC News business reporter 22 December, 2004 Pulling off one of the largest and most daring cash robberies of all time is one thing. Disposing successfully of the loot and enjoying the benefits is another matter. For the criminals who have made off with more than #20m from the headquarters of Northern Bank in Belfast, the problems may only just be beginning. Firstly, they will have to contend with the huge worldwide publicity that their heist has generated. 'Massive headache' Police in the United Kingdom and across Europe will be hot on their trail while shopkeepers from Ballymena to Brighton will be alert to any large or unusual purchases for the next few weeks. Secondly, the sheer size of the robbers' hoard could turn out to be a millstone around their necks. Getting rid of #20m without causing huge suspicion is likely to tax even the most resourceful and determined of criminal minds. Not only do the stolen notes each have their own serial number, making them easy to identify but the majority are denominated in Northern Ireland currency. Although this is accepted throughout the United Kingdom, far fewer notes of this type tend to be in circulation outside Northern Ireland, making any effort to disperse them in England more risky. "They have a massive headache," says John Horan, a money laundering expert with accountants Harbinson Mulholland. "To some extent, they have been the victims of their own success." Furthermore, the laws governing reporting of suspicious money flows have been tightened up over the past two years, making it far harder for the criminals to discreetly invest their loot in a piece of real estate or an Old Master. Suspicious minds While banks have always had a legal responsibility to report suspicions of potential money laundering, the Proceeds of Crime Act passed in 2003 has extended this obligation to a whole raft of businesses and professionals. "If they're thinking of buying property, that's a bad idea because property developers, estate agents and conveyancing lawyers are regulated and all have an obligation to report their suspicions," says Mr Horan. "Thinking of buying a Matisse or a nice Rembrandt? That's a bad idea too because high value dealers such as auction houses are also regulated." The robbers still have a number of options, money laundering experts agree, although they are limited. If they plan to keep the money within the United Kingdom without resorting to burying it, setting up a front company is the most likely option. "They can set up a fake company which can be used to nominally provide services and invoices for those services," says Trevor Mascarenhas, a partner at Phillipsohn Crawfords Berwald, a law firm specialising in fraud and money laundering. "They can then take the cash and put it through the system, paying tax on what they purport to provide and try to legitimise the money." Overseas options To do this successfully, says Mr Horan, they would need the assistance of an expert money launderer who would expect to take a major cut of the proceeds. More likely, however, is that the robbers will attempt to smuggle the money out of United Kingdom in multiple consignments so as not to jeopardise the entire haul. Drug laundering organisations in South America and Russian criminal gangs operating across Europe may provide a ready conduit for the money, channelling it through banks willing not to ask too many questions. According to Ian Hopkins, a senior consultant with corporate investigators Carratu International, Colombia is one destination the robbers may consider. "There are places like that which are not too concerned where the money comes from. There are banks which will take their 2% to 3% and deal with the rest of the money." The money could even ultimately find its way back into the British economy through offshore businesses and accounts. Whatever the fate of the money, most experts believe the robbers may have taken on more than they can chew. "I would be very surprised if they expected to steal #20m," says Mr Hopkins. "It is like the Great Train Robbery. They are likely to be surprised and not a little panicked about how much they have got." _________________________________________ Open Source Vulnerability Database (OSVDB) Everything is Vulnerable - http://www.osvdb.org/ --- end forwarded text -- ----------------- R. A. Hettinga <mailto: rah(a)ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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An interesting thread...Hacking Bluetooth
by Tyler Durden 23 Dec '04

23 Dec '04

There's some guy ("German Guy") spouting some coherent-sounding conspiracy theories over here: http://www.godlikeproductions.com/bbs/message.php?page=23&topic=10&message=… I wouldn't normally post something like this, but the guy's done a little bit of homework on a huge variety of topics, so it's really an excellent hoax, seen from a distance. Here's on thing giving me some doubts, though (but of course if this is true he may have just pulled it from Google somewhere): "Here4s another myth: you cannot hack bluetooth from a distance of more than 40 metres. Not true. My technical partner Felix can crack it at over half a kilometre. Which is why he enjoys driving around so much in areas where we know British, American, Israeli or Russian ops are living or working. The great thing about many German cities is that most affordable residences are within metres of the street anyway." Any comments? -TD

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[ISN] Robbers' quandary: Getting rid of the cash
by R.A. Hettinga 23 Dec '04

23 Dec '04

--- begin forwarded text

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News on the Skype reverse-engineering front
by Ralf-Philipp Weinmann 23 Dec '04

23 Dec '04

I thought this might be of interest for the list, but haven't seen it mentioned/discussed here: Some progress has been made reverse-engineering the Skype protocol [1]. No details on the crypto implementation yet, but first attempts to understand the P2P model they use. Cheers, Ralf [1] S. A. Baset and H. Schulzrinne An Analysis of the Skype Peer-to-Peer Internel Telephony Protocol http://arxiv.org/pdf/cs.NI/0412017 [2] H.T. Kung: CS143: Computer Networks (P2P VoIP) http://www.eecs.harvard.edu/cs143/slides/2004-12-02-p2p-voip.pdf

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All your wavelengths belong to us (or Powell, or the SS)
by Major Variola (ret) 23 Dec '04

23 Dec '04

The FCC is trying to shut down a guerilla radio station in DC calling for protests during Bush's January re-anoint^H^H^H^H^H Google for it.

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Re: Israeli Airport Security Questioning Re: CRYPTO-GRAM, December 15, 2004
by John Kelsey 22 Dec '04

22 Dec '04

>From: "Major Variola (ret)" <mv(a)cdc.gov> >Sent: Dec 21, 2004 10:20 PM >To: "cypherpunks(a)al-qaeda.net" <cypherpunks(a)al-qaeda.net> >Subject: Re: Israeli Airport Security Questioning Re: CRYPTO-GRAM, December 15, 2004 >At 02:16 PM 12/20/04 -0500, John Kelsey wrote: >>No doubt a real intelligence agent would be good at getting through >>this kind of screening, but that doesn't mean most of the people who >>want to blow up planes would be any good at it! >You really continue to understimate the freedom fighters, don't you? >(The first) King George did the same. Maybe so. It's clearly added cost to the attackers--they have to select not just the subset of volunteers willing to blow themselves up on the plane, but the subset of *those* who can also keep cool under rapid-fire questioning of their cover story. The attackers probably have to either spend a lot of time rehearsing their cover stories, or have to keep their cover stories very close to their actual lives and interests, which makes profiling easier. Both of these cut way down on the total pool of attackers available. My assumption is that national intelligence agencies can probably afford to do this--they can probably filter through a lot more possible candidates to get field agents who can handle a cover story well, for example, since they can hire openly, rather than quietly recruiting from madrassa students or something. Their training facilities can be centralized and stay in one place, rather than being a camp in the desert somewhere that has to be abandoned frequently, and they can develop a lot of expertise in training people to survive intensive questioning without fumbling their cover story. --John

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International meet on cryptology in Chennai
by R.A. Hettinga 22 Dec '04

22 Dec '04

<http://www.chennaionline.com/colnews/newsitem.asp?NEWSID=%7BE75EFF46-873D-4…> Chennai Online News Service - View News Dec 20, 2004 Mon Dharana International meet on cryptology in Chennai Search for More News Chennai, Dec 19: A three-day international conference on cryptology will get underway here tomorrow with the aim of providing secure communication to the business and military sectors. Over 140 researchers in the field, including some from abroad, would participate in the conference, Dr M S Vijyaraghavan, executive director, Society for Electronics Transactions and Security (SETS), told reporters here today. Cryptography is the art of providing secure information over insecure channels. It encodes texts and provides a method of decoding. Cryptanalysis is the art of breaking into cryptographic information. The new science - cryptology - was a study of both, he said. India had not made any headway in cryptology, he said and added that the conference would help develop this in a big way. President A P J Abdul Kalam would address the participants through video conferencing. Dr R Chidambaram, principal scientific adviser, Government of India, would inaugurate the conference. (Our Correspondent) Published: Sunday, December 19, 2004 -- ----------------- R. A. Hettinga <mailto: rah(a)ibuc.com> The Internet Bearer Underwriting Corporation <http://www.ibuc.com/> 44 Farquhar Street, Boston, MA 02131 USA "... however it may deserve respect for its usefulness and antiquity, [predicting the end of the world] has not been found agreeable to experience." -- Edward Gibbon, 'Decline and Fall of the Roman Empire'

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