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In CIA Leak Trial of Schulte FBI Agent Cites Petabyte of Info & Brutal Kangaroo Cyber Tool

By Matthew Russell Lee, Patreon Thread Song
BBC - Decrypt - LightRead - Honduras - Pod

SDNY COURTHOUSE, June 14 – When jury selection was completed for the retrial of accused CIA Vault 7 leaker Joshua Schulte, U.S. District Court for the Southern District of New York Judge Jesse M. Furman told the jurors, Do not read or say anything about the case. Inner City Press was there, and live tweeted here.

Judge Furman: I'm going to announce the selected jurors. [He reads out 16 names. Inner City Press took fast notes - on on Patreon here]

Inner City Press has filed opposing the sealing of the courtroom for CIA witnesses, and once the witnesses begin anticipates making other filings.

The June 14, 2022 opening arguments, as live tweeted by Inner City Press, here:

AUSA Denton: Joshua Schulte is responsible for the largest leak in CIA history, and put officers at risk. When confronted, he lied.

 AUSA Denton: He stole custom-built software used to track terorrists. Those filed were posted on Wikileaks. It was devastating. Operations came to a crashing halt. Allies wondered if their info could be leaked. The FBI sprang into action

 AUSA Denton: They found his man's crimes. He hacked and leaked cyber tools. Joshua Schulte was one of the CIA's own. He built the tools. He violated his oath to protect the US, and he violated the law. Why did he do it? Out of spite.

 AUSA Denton: He felt the CIA had disrespected him. He wanted payback. His vendetta continued in jail. He got a cellphone in jail and leaked again, plotted a campaign. He committed espionage, computer hacking, and he lied to the FBI. My name is David Denton. AUSA Denton: Joshua Schulte built sophisticated cyber tools, in a secret building with armed guards. Those there were vetted, that they could be trusted.

 AUSA Denton: Schulte was made a software administrator with super-access. He made back-ups... He falsely accused his co-worker of making a death threat. But the CIA found it was not true. Schulte got angry and acted. The CIA locked it down, changed the codes

 AUSA Denton: But the CIA did not change one particular key. And Schulte used it. He heard it too would be changed. That was the day he stole the info that Wikileaks posted. He used a snap shot, or reversion, before it was locked down.

AUSA Denton: He spent an hour inside the snapshot. He used his powers and copied the entire CIA cyber arsenal. He stole a complete copy - same as was published on Wikileaks. He unwound his reversion. Schulte started deleting log files. But he couldn't get them all

AUSA Denton: He downloaded software to hide his identity. He researched how to transfer, and how to destroy digital evidence at home. He tried to wipe his home computer clean - he followed the exact instructions of Wikileaks. He took a job in NY [at Bloomberg]

AUSA Denton: After Wikileaks published, Schulte lied to the FBI. Then, in jail, he used a secret phone to create accounts on social media. In jail notebooks he wrote, I will stage my information war

AUSA Denton: After Wikileaks published, Schulte lied to the FBI. Then, in jail, he used a secret phone to create accounts on social media. In jail notebooks he wrote, I will stage my information war

 AUSA Denton: Ladies and gentlemen, you'll see how the agents identified Schulte and his back up version. Forensic experts will show you what he did. His digital fingerprints were all over it. They found the trail.

AUSA Denton: You'll hear from Schulte's co-workers, covert operatives at the CIA AUSA Denton: Schulte got the nickname "Nuclear Option." His mounting anger at the CIA, the agency tried to address it. You'll see the log files. You'll watch Defendant declare on video he wanted his supervisors to be punished. You'll see him in jail on the phone

AUSA Denton: He wrote that he would break of all diplomatic relations... At the end of the trial we'll talk to you again. For now, do three things. First, pay close attention. 2d, follow Judge Furman's instructions. 3d, Use your common sense - AUSA Denton: This man is guilty. Thank you.

Judge Furman: Now, defendant's opening statement.

 Schulte: The evidence does not fit. There is no information war. I did not commit these crimes. Good afternoon. My name is Josh Schulte. I was born in 1988 in Texas.

Schulte: I worked at IBM. Then I wanted to serve my country. I was 12 yrs old on September 11, 2001. I applied to NSA and CIA after one semester. After successful background checks I was hired in 2010. I assisted on a case to verify the location of Osama Bin Laden

Schulte: I then worked at Bloomberg LLP. I was there when Wikileaks published. It was embarrassing for the CIA. They did not know when it was taken, how much or who. They still don't know. DEVLAN was so insecure it was nicknamed the Wild Wild West

 Schulte: The evidence will show that an individual, after Snowden's leaks, said it could happen to DEVLAN. It was impossible to find the leaker. They could not admit it. To save face, they had to blame someone. They selected me as the patsy.

 Schulte: The CIA told the FBI to go after me. This was a political witch hunt from day one. The government is manipulating the data. If you miss a day at work, they say you were committing a crime. It's spin and manipulation.

 Schulte: This is the government's twilight zone. There were innocent explanations for everything. The first aspect of the government's fantasy is my motive. By 2016, sure life had given me lemons. But I made lemonade.

Schulte: They say I was driven to insanity. I stood up for myself. When I lost, I moved on with my life. Why Wikileaks? Why not just on the Internet to expose everything. Wikileaks only published a small segment of it.

 Schulte: This does not jibe with my loyal personality and patriotism. The government says I broke the rules of the CIA. But there were no rules on DEVLAN. But it was just a co-worker, using his access to power. They try to conflate servers and permissions.

 Schulte: In reality, the back door was the front door. I would not have had to go back in time. It was all unsecure. They say the March 3, 2016 version was taken for emotional reasons. The computer I used at CIA was preserved. I could have wiped it.

 Schulte: Their evidence proves my innocence. They have the logs. Not one was deleted. The commands were not executed. But they plan to convict me regardless of my innocence. Someone stole their crown jewels. It's not a good look for the CIA.

Schulte: My CIA work station shows I only connected to one drive and connected it to a write-blocker. My computer did not have the space to store the back ups. That's reasonable doubt. My CIA work station proves my innocence. Then they seized all my home computers

 Schulte: I had huge servers. These are my habits and hobbies. I stayed up late. I was playing an online game. The evidence will prove my innocence. They will wave a back up file in your face. They don't know which one was stolen.

 Schulte: The government claims that Wikileaks sat on the info for a whole year. Really? An organization that wants to spread news? Does the NYT sit on a story for a year? You release it. The timeline does not make sense.

Schulte: Yes, I am incarcerated. These fine gentlemen here are Marshals. You will see a lot of them. I have been in jail five years - you cannot know the pain.

Judge Furman: Move on.

Schulte: Uh, ok. I was suffering from strain and anxiety.

Schulte: I wanted to publish the Presumption of Innocence. And it was, on Facebook... Then, the CIA reclassified things. Then they accuse me of thought-crime. Orwell's 1984 was prophetic. My notebooks were labeled Attorney Client Privilege.

 Schulte: The government cherry picks the evidence to deceive you. The info war was about my unclassified redress of grievances. President Zelenskyy of Ukraine has likewise engaged in an information war to gain hearts and minds

 Schulte: I ask the jury to realize how serious this trial is. Treat me as you'd like to be treated. The government will go first for everything. At the end in summation they will go first AND last. You will find I am innocent. After 5 years, justice will be done.

The June 14, 2022 first witness, direct only, here

OK - now first witness in US v. Joshua Shulte: FBI Agent Richard Evanchec.

 AUSA: Where do you work now? Evanchec: In Dallas. North Texas. Before that I was in counter terrorism. And in NYC, counter intelligence squad 6. We thwarted foreign government's spying

 AUSA: What was your role in investigating Josh Schulte? Evanchec: I was one of the lead agents.  AUSA: Do you see Mr. Schulte? Evanchec: He is there, white mask. He just waved. Wearing a beard. With a shaved head. AUSA: Let's talk about March 7, 2017.

Evanchec: Wikileaks released Vault 7... The impact was catastrophic. Our enemies now knew our capabilities. Operations overseas were brought to a complete halt. Innovation was taken offline completely.

 AUSA: Look at the item on the ledge next to you. Have you seen that item? Evanchec: It's an HP laptop with copy of the Vault 7 leak. Schulte: The defense objects. Judge Furman: Overruled. AUSA Michael Lockard: What is here in Exhibit 2?

Evanchec: This is from the CIA documents leaked in Vault 7. It says, "CIA Hacking Tools Revealed." AUSA Lockard: What is this? Evanchec: This is the user guide to Brutal Kangaroo, the cyber tool.

Evanchec (reading) "To infect thumb drives... Brutal Kangaroo and Drifting Deadline." A CIA designed thumb drive that could infect others. This paragraph is classified as secret.

 Judge Furman: What is the marking at the top? Evanchec: SECRET is the classification level. Then Not For Foreign Dissemination- even an ally. Judge Furman: Jurors, some documents are declassified for this trial. There are other issues I'll describe as they come up

AUSA Lockard: What is this? Evanchec: The chain of command Mr. Schulte was under. AUSA Lockard: The stolen information was from the Center for Cyber Intelligence? Evanchec: Yes. 

AUSA Lockard: Is the location of CCI undisclosed? Evanchec: Yes. It is fortified. Evanchec: There was a full body turnstile. You had to enter a unique identification PIN.  AUSA Lockard: Where was the Development Branch? Evanchec: On the 8th and 9th floor. AUSA Lockard: How did you get in? Evanchec: A unique card reader and PIN for each Vault.

 AUSA Lockard: Let's turn to your investigation. Evanchec: It was a full investigation of Joshua Schulte. With over 100 agents. 1.4 petabytes of information. Unprecedented in FBI history.

 AUSA Lockard (reading from a stipulation) "If called as a witness, a member of FBI CART with knowledge of the matter logged these hard drives into evidence."

 AUSA Lockard: (reading from stipulation) "GX 100 is a CD with records of Joshua Adam Schulte... Jeremy Weber... Michael, GX 115... Amol, 116... and the floor plan of the CCI... portions of the defendant's CIA personnel file. 401-405, NDAs, 409, letter of warning

Judge Furman: Ladies and gentlemen, sorry for stealing three minutes of your time. We'll pick up tomorrow. You heard CIA employees referred to by first names only, or even other names altogether. It's will my permission. If you get COVID, contact us.

Judge Furman: Members of the public, please hold a few minutes, to not run into the jurors. Can we get a preview of witnesses? AUSA: Evanchec and cross will take up much of tomorrow. [And when the "sealed" witnesses? Watch this feed]

 Judge Furman: Mr. Schulte, you'll be taken to the SCIF (Sensitized Classified Information Facility), please give the government your list. Also, you crossed the line in opening, essentially testifying. I want to warn you against it in your questioning

 Judge Furman: You need to ask questions like a lawyer, not a witness.  Schulte: I expect that documents will support me. Judge Furman: It was 1st hand testimonial. I'll leave it there. I'm told one of the jurors wants to speak to me. I'll bring it up tomorrow.

 Here's from Judge Furman June 13 Order: "as discussed on the record at the classified hearing held  on June 8, 2022, the Court concludes that the particular statement Defendant seeks to admit is  admissible. The Court further concludes that the information should likely be admitted as a  stipulation, which would give Defendant “substantially the same ability to make his defense as  would disclosure of ” a portion of the document itself, pursuant to CIPA Section 6(c). See 18.  U.S.C. app. 3 § 6(c). Accordingly, the parties shall propose an agreed upon stipulation or  competing stipulations for the Court’s approval no later than June 17, 2022."

Previously, in the conclusion of the month long trial of accused CIA leaker Joshua Schulte, on the morning of March 9, 2020 the jury returned guilty verdicts on Counts 8 and 10, with mistrial granted on all other counts. U.S. District Court for the Southern District of New York Judge Paul A. Crotty set March 26 for the next date. 

Then it was moved to April 22 (then May 18). March 9 thread here. Song here.

  On November 9, 2021, a status conference was held before Judge Jesse M. Furman to whom the case was reassigned. Inner City Press live tweeted it here - the upshot was a May 23, 2022 trial date was set. Vlog here.

 That has since been moved to June, with the admonition that it will not be further moved. Schulte has raised issues of how his right to represent himself is possible with law library, turned off computers and printer paper issues in the MDC.

  This was was one of the issues at a May 18 pre-trial conference held on Courtroom 15A of 500 Pearl Street, where Judge Furman has been overseeing a drug trial Inner City Press is also covering, along with other criminal and civil trials. It stepped out - then found that a window had been opened to oppose courtroom sealing. It wrote in to Judge Furman, see below and The New Yorker of June 16: "Matthew Russell Lee, an independent journalist who covered the first trial, recently filed an objection to the government’s motion to seal the courtroom during testimony from C.I.A. officers, but it appears that that condition will again apply."

On June 8 there was a final pre-trial conference, also in courtroom 15A; Inner City Press live tweeted:

OK- at #CIA #Vault7 leak case of US v. Schulte, Inner City Press which has opposed sealing is here, with half dozen gov't reps.

Now US wants to quash subpoena on a witness.

Judge: I would like to avoid sidebars... esp due to Mr Schulte's US Marshals issue. [He has 2 Marshals sitting behind him]

 AUSA: When we move to sealed witnesses... Judge: We'll have the jury leave too, to make no one is in the courtroom who shouldn't be. Openings at earliest Tuesday [and probably later]. Four alternates.

 Judge: 10 peremptories for the defense.  6 for the US. I'll tell jurors Mr Schulte is charged with 9 crimes [incl with] Wikileaks. 

Schulte: Stress that I am presumed innocent.

 Judge: I intend to ask jurors if they are vaccinated and boosted.

AUSA: We want our experts and former case agent in the court during other witnesses' testimony. Judge: Experts yes, case agent no.

Judge: Witnesses cannot read transcripts or media. A/V dry run, you can do it when in the courtroom, Mr Schulte.

Schulte: I'll be here til 4 on my Friday SCIF day.

 Judge: We'll take up the rest in our classified setting. Adjourned.

 Then the prosecutors and Marshals stood around Schulte as he tried to charge his laptop. The continued session would be elsewhere in the courthouse, sealed.

 Back on April 13, 2022, Judge Furman held a conference with Schulte present. Inner City Press live tweeted it here....

Previously, Judge Crotty held another proceeding with Schulte and his stand-by counsel. Schulte was moved to the MDC: "JOSHUA ADAM SCHULTE Register Number: 79471-054 Age:     33 Race:     White Sex:     Male Located at: Brooklyn MDC Release Date: UNKNOWN." [And see its Oct 15 MCC video here]

  On March 2, 2021 were the closing arguments [in the first trial], which Inner City Press tweeted, thread here

 More on Patreon here.

See Inner City Press filing into the docket on Big Cases Bot, here. Watch this site. The case is US v. Schulte, 17-cr-548 (Furman).


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