Monday, October 8, 2012

Current Events - October 8, 2012


Your right to resell your own stuff is in peril

It could become illegal to resell your iPhone 4, car or family antiques


Tucked into the U.S. Supreme Court’s agenda this fall is a little-known case that could upend your ability to resell everything from your grandmother’s antique furniture to your iPhone 4.
At issue in Kirtsaeng v. John Wiley & Sons is the first-sale doctrine in copyright law, which allows you to buy and then sell things like electronics, books, artwork and furniture, as well as CDs and DVDs, without getting permission from the copyright holder of those products. 
Under the doctrine, which the Supreme Court has recognized since 1908, you can resell your stuff without worry because the copyright holder only had control over the first sale.
Put simply, though Apple Inc. has the copyright on the iPhone and Mark Owen has it on the book “No Easy Day,” you can still sell your copies to whomever you please whenever you want without retribution.
That’s being challenged now for products that are made abroad, and if the Supreme Court upholds an appellate court ruling, it would mean that the copyright holders of anything you own that has been made in China, Japan or Europe, for example, would have to give you permission to sell it.
“It means that it’s harder for consumers to buy used products and harder for them to sell them,” said Jonathan Band, an adjunct professor at Georgetown University Law Center, who filed a friend-of-the-court brief on behalf of the American Library Association, the Association of College and Research Libraries and the Association for Research Libraries. “This has huge consumer impact on all consumer groups.”
Another likely result is that it would hit you financially because the copyright holder would now want a piece of that sale.
It could be your personal electronic devices or the family jewels that have been passed down from your great-grandparents who immigrated from Spain. It could be a book that was written by an American writer but printed and bound overseas, or an Italian painter’s artwork.
There are implications for a variety of wide-ranging U.S. entities, including libraries, musicians, museums and even resale juggernauts eBay Inc. and Craigslist. U.S. libraries, for example, carry some 200 million books from foreign publishers.
“It would be absurd to say anything manufactured abroad can’t be bought or sold here,” said Marvin Ammori, a First Amendment lawyer and Schwartz Fellow at the New American Foundation who specializes in technology issues.
The case stems from Supap Kirtsaeng’s college experience. A native of Thailand, Kirtsaeng came to America in 1997 to study at Cornell University. When he discovered that his textbooks, produced by Wiley, were substantially cheaper to buy in Thailand than they were in Ithaca, N.Y., he rallied his Thai relatives to buy the books and ship them to him in the United States.
While American men's brands once prized European craftsmanship or appreciated low-cost production from the Far East, some of the best fashion now is made right here in the U.S. Martin Marks talks menswear. 
He then sold them on eBay, making upward of $1.2 million, according to court documents.
Wiley, which admitted that it charged less for books sold abroad than it did in the United States, sued him for copyright infringement. Kirtsaeng countered with the first-sale doctrine.
In August 2011, the U.S. Court of Appeals for the Second Circuit upheld a lower court’s ruling that anything that was manufactured overseas is not subject to the first-sale principle. Only American-made products or “copies manufactured domestically” were.
“That’s a non-free-market capitalistic idea for something that’s pretty fundamental to our modern economy,” Ammori commented.
The Supreme Court is scheduled to hear oral arguments on the case on Oct. 29.
Both Ammori and Band worry that a decision in favor of the lower court would lead to some strange, even absurd consequences. For example, it could become an incentive for manufacturers to have everything produced overseas because they would be able to control every resale.
It could also become a weighty issue for auto trade-ins and resales, considering about 40% of most U.S.-made cars carry technology and parts that were made overseas.
This is a particularly important decision for the likes of eBay and Craigslist, whose very business platform relies on the secondary marketplace. If sellers had to get permission to peddle their wares on the sites, they likely wouldn’t do it.
Moreover, a major manufacturer would likely go to eBay to get it to pull a for-sale item off the site than to the individual seller, Ammori added.
In its friend-of-the-court brief, eBay noted that the Second Circuit’s rule “affords copyright owners the ability to control the downstream sales of goods for which they have already been paid.” What’s more, it “allows for significant adverse consequences for trade, e-commerce, secondary markets, small businesses, consumers and jobs in the United States.”
Ammori, for one, wonders what the impact would be to individual Supreme Court justices who may buy and sell things of their own. He himself once bought an antique desk from a Supreme Court justice. “Sometimes it’s impossible to tell where things have been manufactured,” he said. “Who doesn’t buy and sell things? Millions of Americans would be affected by this.”
If the Supreme Court does rule with the appellate court, it’s likely that the matter would be brought to Congress to force a change in law. Until then, however, consumers would be stuck between a rock and a hard place when trying to resell their stuff.

Claim: Obama campaign illegally solicited foreign donors via social media website
Posted By Matthew Boyle On 8:17 AM 10/08/2012
President Barack Obama’s re-election campaign has been soliciting foreigners for donations, an explosive report from the conservative Government Accountability Institute (GAI) shows. Those foreign donors are allegedly visiting the Obama campaign’s donation solicitation Web pages through a social media website the campaign controls, and through an outside website that serves mostly Internet users from outside the United States.
About 20 percent of visitors to the “my.barackobama.com” social media website “originated from foreign locations,” the report found. That Web address is owned and controlled by the Obama re-election campaign.
“At no point during the [website's] subscription process is a visitor asked whether he or she can legally donate to a U.S. election,” GAI notes.
“Once a visitor signs up, he or she immediately begins receiving solicitations for donations. In fact, numerous foreign nationals report receiving solicitation letters and thank you emails from the campaign for their support. Some of these emails have been reposted on blog sites to encourage friends to click on the donate link or get their names on the email list.”
The “primary purpose of my.barackobama.com is to create a highly personalized vehicle for individuals to ‘get involved’ and to invite others to do the same,” GAI explains. But Obama’s campaign “employs various techniques to gather email and other data on the friends and associations of [the site's] members to further the campaign’s fundraising efforts.”
Washington Examiner writer Paul Bedard reported last week that a fundraising scandal would soon hit the Obama campaign, and may have been one reason why the president bumbled his way to failure during Wednesday’s debate against Mitt Romney.
Federal law prohibits ”a foreign national, directly or indirectly,” from making “a contribution or donation of money or other thing of value … in connection with a Federal, State, or local election. The same section of law makes it a federal crime to “solicit, accept, or receive” such campaign contributions.
GAI’s report explores fundraising practices that directly contradict the president’s 2010 insistence that American elections shouldn’t be funded by foreign powers.
“I don’t think American elections should be bankrolled by America’s most powerful interests, or worse, by foreign entities,” Obama said then.
GAI cites examples comprising what it calls “but a sample” of a large trend of Obama’s campaign soliciting foreign nationals for campaign donations. Those examples focus on foreign bloggers posting fundraising-request emails from the Obama campaign.
The group identified such Obama fundraising solicitations sent to Chinese, Azerbaijani, Vietnamese, Dutch, Italian, Japanese, Norwegian and Egyptian bloggers.
In a report accompanying the GAI report’s release, former U.S. Attorney Ken Sukhia concluded that the Obama campaign is clearly soliciting donations from foreign nationals. Sukhia served as counsel to President George W. Bush and Vice President Dick Cheney on military and overseas ballot cases during the 2000 election.
“The GAI Report has shown that the Obama Campaign actively solicits campaign contributions from non-U.S. residents throughout the world,” Sukhia wrote. “[S]uch solicitations could be explainable if they were received solely by U.S. citizens abroad. They clearly are not.”
In addition to soliciting foreigners for donations, the Obama campaign has chosen not to employ industry-standard safeguards against collecting unlawful foreign donations via its social media and online process, the GAI report says.
Obama for America does not require online credit card donors to input Card Verification Value data to confirm that a political donor is legally authorized to charge contributions to a given credit card. GAI said CVV data consists of “a three or four digit number generally imprinted on the back of the card” in order “to verify that the person executing the purchase physically possesses the card.”
GAI notes that the Obama campaign’s failure to use such security measures in its online donation system likely costs it “millions of dollars in additional fees” because “card processors charge higher transaction fees for campaigns that fail to use the CVV.”
The group estimates that Obama’s 2008 campaign, which raised over $500 million, likely “paid at least an additional $7.25 million in fees to the banks that it could have avoided if it were to have used the CVV,” assuming the campaign paid typical rates for processing credit card transactions.
The Obama campaign claims it has its own methods of confirming the legitimacy of credit card transactions. But it does require CVV data from credit card purchasers of hats, t-shirts and other campaign merchandise.
GAI also determined that the Obama re-election campaign has selected a particularly weak Address Verification System (AVS), a computerized means of comparing house numbers and ZIP codes provided by a donor with the corresponding numbers on file with a credit card issuer.
Different AVS systems “can be set to accept multiple degrees of error,” according to GAI’s report.
“[D]epending on the degree of error the Webmaster allows for the AVS, a transaction might not be flagged as potentially fraudulent if the purchaser mistyped the address associated with the card,” GAI reported. “While all major U.S. credit card issuers are AVS compliant, many foreign card issuers are not.”
Sukhia said that “the AVS error settings the [Obama] campaign appears to have chosen would not provide meaningful protection against fraudulent or foreign contributions.”
These “vulnerabilities” in the Oama campaign’s online credit card processing system, GAI contends, “are not difficult to fix.”
“In addition to the CVV and a strong AVS system, the campaign could make use of geo-location on the campaign websites so that if a visitor comes from a foreign IP [Internet Protocol] address, he or she would be alerted of the relevant federal laws and asked for a passport number or military ID in order to proceed to the donation page,” GAI said.
In addition to fundraising practices employed at “my.barackobama.com,” another website — “Obama.com” — directs Web traffic to pages where the president’s campaign fills its coffers, GAI concluded.
Neither President Obama nor his campaign owns Obama.com. Sukhia said data show that 68 percent of traffic to that website comes from foreign users, all of whom are redirected to Obama fundraising Web pages.
Obama.com was registered in September 2008 to Robert Roche, an Obama campaign bundler living in Shanghai, China, according to GAI.
“Roche is an American citizen (originally from Chicago) who has spent the bulk of his time since the late 1990s developing business interests in Shanghai,” the group wrote. Roche “has considerable business interests in Chinese state-run television and ties to several state-owned Chinese companies.”
“By October 2, 2008, Obama.com began redirecting all visitors to specific content on my.barackobama.com,” GAI wrote. “Upon arrival to my.barackobama.com, visitors were asked for their name, email, and zip code and presumably were sent solicitation letters, like every other visitor who provides that information to the campaign.”
“Following President Obama’s campaign victory in November 2008, Obama.com redirected visitors to a page selling inauguration merchandise and taking donations for the inauguration celebration,” GAI added. “Throughout 2009, the website redirected to pages on the campaign website advocating various presidential initiatives.”
“Starting in late January 2010, Obama.com redirected to a page gathering email addresses and continued to do so through 2011. Sometime during 2012, the webpage began sending visitors to a donation page on the Obama campaign’s website. The campaign’s donation page loads an affiliate number to track the traffic and donations coming via the website. It continues to do so today.”
According to GAI’s report, Roche’s name was removed from the domain registration of Obama.com on Oct. 4, 2010, and replaced with “an anonymous registration” provided by an affiliate of GoDaddy.com. Obama.com was subsequently moved to a server company based in Utah and its administration was transferred to Wicked Global, “a small company with only four employees listed on its website,” and led by a 25-year-old Harvard dropout.
“Who arranged for Wicked Global to oversee Obama.com, and why that was done is unknown,” GAI reported, adding that it “remains unclear whether or not Roche himself continues to own Obama.com. Nevertheless, the site continues to aid the Obama campaign, regardless of ownership.”


Corruption: Exposing Barack Obama’s Illegal Foreign Campaign Money Loophole

A new report obtained by Townhall from the non-partisan Government Accountability Institute [GAI] shows the Obama campaign has potentially violated federal election law by failing to prevent the use of fraudulent or foreign credit card transactions on the official Obama for America [OFA] donation webpage.
For the past eight months, GAI has been investigating the potential influence of foreign online campaign donations in House, Senate and presidential elections. The report was conducted using spidering software and found thousands of foreign sites linking to campaign donation pages. The investigation was conducted with the guidance of a former U.S. attorney. GAI is led by Peter Schweizer, who recently exposed congressional insider trading in his book Throw Them All Out.

“As FBI surveillance tapes have previously shown, foreign governments understand and are eager to exploit the weaknesses of American campaigns,” the report says. “This, combined with the Internet’s ability to disintermediate campaign contributions on a mass scale, as well as outmoded and lax Federal Election Commission rules, make U.S. elections vulnerable to foreign influence.”

OFA seems to be taking advantage of a “foreign donor loophole” by not using CVV on their campaign donation page. When you donate online to the Obama campaign using a credit card, the contribution webpage does not require donors to enter a secure CVV number (also known as CSC, CVV2 or CVN), the three-digit securing code on the back of credit cards. This code, although not 100 percent effective, is used to ensure a person making a purchase physically possesses the card. According to the report, 90 percent of e-commerce and 19 of the 20 largest charities in the United States use a CVV code, making its use standard industry practice in order to prevent fraud. Another anti-fraud security measure includes software, better known as an Address Verification System, to verify a donor’s address matches the address on file with the credit card company. The investigation could not determine whether OFA is using this type of software to prevent fraudulent or illegal donations.

Because of the lack of a CVV code requirement, the door is opened for OFA to accept robo-donations, or in other words, large numbers of small and automatic donations made online to evade FEC reporting requirements. Although it isn’t illegal to decline the use of a secure CVV credit card code for campaign donations, it is illegal to accept campaign donations from foreign sources. Campaigns are required under criminal code not to solicit, accept or receive foreign donations in any amount. The Federal Elections Commission doesn’t require campaigns to disclose the names of donors making contributions of less than $200 unless audited. In addition, FEC rules don’t require campaigns to keep records of those giving less than $50. These rules combined with the lack of a CVV numbers make it easy for campaigns to get away with taking foreign donations.
According to GAI, it is the duty of the campaign to “ensure compliance with the law. Indeed, they risk criminal prosecution for the conscious failure to do so. This means that whether or not the FEC requires it to be reported, campaigns have an independent duty under the law to discover and protect against criminal campaign contributions.” Protecting against criminal campaign contributions is easily accomplished by requiring a CVV code on the campaign donation page.
OFA has specifically touted its “grassroots” success by showcasing the majority of its donations coming from those giving less than $200. It appears the campaign also solicits funds for less than $200 in order to avoid having to report the name of the person making a donation under FEC rules. The GAI documents included the following email from Barack Obama to campaign supporters:




IT ALL ADDS UP

A large part of the Team Obama operation is outsourced. More than 200 domain names with the word “Obama” in the web address have been purchased. The most significant of these websites may be Obama.com, which is owned by an Obama bundler in Shanghai, China with “questionable business ties to state-run Chinese enterprises,” according to the report.

Obama.com was purchased in 2008, and, although Obama.com is owned by a third party, not the campaign itself, the site redirects its foreign traffic, a whopping 68 percent, directly to the official Obama for America campaign donation page. The Obama campaign’s official and main website, BarackObama.com, sees 43 percent of its traffic coming from foreign IP addresses, according to web metrics firm Markosweb and noted in the report.
According to industry leading web analytics site Markosweb, an anonymously registered redirect site (Obama.com) features 68 % foreign traffic. Starting in December 2011, the site was linked to a specific donation page on the official BarackObama.com campaign website for ten months. The page loaded a tracking number, 634930, into a space on the website labeled "who encouraged you to make this donation." That tracking number is embedded in the source code for Obama.com and is associated with the Obama Victory Fund. In early September 2012, the page began redirecting to the standard Obama Victory Fund donation page. Search engine optimization (SEO) efforts, using common spamming techniques, may have been undertaken by unknown third-parties, generating foreign traffic to Obama.com.
China has a long history of trying to illegally influence American elections. Their efforts were most prominent in the 1990s.
In the past, foreign governments have relied on middlemen to transfer illegal campaign contributions. With the explosion of Internet campaign fundraising, the prospect of foreign powers, criminal gangs, foreign individuals, or domestic fraudsters making direct campaign contributions to American elections becomes far more likely. Put simply, campaign fundraising crimes are now just a click away. Rather than risking detection or relying on a middleman, donations can be anonymously donated through campaign websites. The state of Internet security of many political campaigns’ websites leaves American elections vulnerable to fraud or foreign influence.
AN HONEST MISTAKE, OR SOMETHING MORE?
Is the non-use of CVV code verification simply an oversight or mistake made by Obama for America? Most likely, no. The Obama campaign is willing to pay millions in fees in order to accept unsecured contributions on their donation page without the CVV code. Attorney Kenneth Sukhia analyzed the GAI’s findings and this revelation in the following way in a separate report.
“As GAI points out, if a campaign is truly seeking to do all it can to prevent illicit contributions, there is no reason not to employ these basic fraud prevention tools. First, these tools are easily installed, and once set up, operate with a minimum of administrative oversight by the vendor. They are fully automated, but can be easily re-calibrated as called for. “
“Under these circumstances, a campaign’s decision to turn off either of these systems despite the increased fees raises legitimate questions as to a campaign’s knowing failure to use its best efforts to comply with the laws prohibiting foreign contributions. Indeed, it’s reasonable to ask why any campaign would ever opt to pay card issuers more for less information and less security. More importantly, why pay card issuers more when doing so lessens a campaign’s ability to comply with the law? It’s hard to imagine any campaign would pay extra for less security and marketing intelligence, unless it stood to benefit in some way from doing so.”
“Because a campaign’s decision to opt out of the standard security measures and to pay more to receive less information about their contributors defies all conventional campaign logic, and because it is difficult to identify a more plausible motive, there is reason to suspect that such decisions may be motivated by the belief that more money could be raised through foreign contributions than lost in added fees by declining security tools designed to stop them.”
OFA isn’t run by amateurs and has a highly sophisticated online presence. OFA is known as the “gold standard” in online technology with a Facebook co-founder, veteran YouTube videographer and an award-winning CNN producer keeping everything running smoothly.

Not to mention, the campaign obviously sees the benefits in using a CVV code to prevent fraud. After all, OFA uses a CVV security code for merchandise purchases. To purchase a sweatshirt or other item in the OFA store, a CVV code must be entered at check out, but the donation page does not require a credit card security code to be used. In addition, the chief technology officer of the Obama campaign, Harper Reed, is a former chief technology officer of the T-shirt company Threadless. Threadless requires a CVV code for online purchases. They clearly know how CVV codes work.

THE NUMBERS

As of September 26, 2012, the Obama campaign has raised $271,327,755 in contributions under $200 for the 2012 cycle. In 2008, it was $335,139,233. The Romney campaign has raised just $58,456,968 in contributions under $200 and has all CVV and online security measures in place. In total, the Obama campaign raised $500 million online in 2008 with $335 million in contributions--more than half--falling under the $200 reporting requirement. Obama has raised more online funds than any campaign in history.
As reported over the weekend, the Obama campaign raised $181 million in September alone--only 2 percent of those donations are required to be reported to the FEC.
The campaign said that just over 1.8 million people made donations to the campaign last month. According to the campaign, over 500k of these were brand-new donors, having neither given in 2008 nor 2012. 98% of contributions were under the reporting threshold of $250. Of these, the average contribution was $53. [It's] really a tale of two worlds. 35k people gave an average of $2,600, while just over 1.7 million people gave an average of $53. Half the campaign's haul came from people giving around the maximum amount and half from people who don't have to be disclosed. Seems a bit odd. The average of $53 from small donors is particularly noteworthy. Contributions under $200 don't have to be disclosed, but the campaign still has to keep track of the donor's name, in case subsequent donations push their contribution over the reporting threshold. For contributions under $50, however, the campaign doesn't even have to keep track of the donor's name. It is effectively considered a "petty cash" donation. A person could theoretically make 10 $49 donations and never be reported, even though their total contributions are above the FEC's reporting threshold. With an average donation of $53 from small donors, Obama has A LOT of donors who will never be disclosed and whose names aren't even known to the campaign. Tens of millions of dollars worth.
HOW LIABLE?

As previously mentioned, the GAI report mentions campaigns have an obligation to protect against illegal campaign contributions. The law under U.S. Code makes it illegal for campaigns or political committees to accept direct or indirect contributions of money from foreign nationals. It is also illegal for a campaign or committee to “solicit, accept, or receive a contribution from a foreign national." Penalties for violations are stiff, according to the report.
While no person can be held accountable under the law for violations he or she is powerless to prevent or for violations of which a person had no knowledge, the law recognizes that to permit meaningful enforcement a person cannot escape responsibility for a crime by deliberately ignoring facts and circumstances that would lead a reasonable person to conclude that a crime is most likely being committed. Moreover, the FEC regulations make it clear that a campaign official cannot avoid criminal culpability by ignoring facts that would lead a reasonable person to inquire whether foreign nationals are contributing funds to the campaign.
DIRECT SOLICITATIONS FROM OFA TO FOREIGN NATIONALS AND THE ONLINE PAPER TRAIL

The internet for the Obama campaign has proved to be a cash cow, but it's also provided a digital paper trail of potential illegal activity for investigators. When foreign bloggers received donation solicitations from the Obama campaign, they wrote about it online. GAI found their sites and documented their experiences. Social media accomplished the same thing--an online trail of Obama campaign solicitations to foreign nationals.

1. In July and August, a Chinese blogger reposts letters he has received from the Obama campaign, each of which contains a solicitation for $3 or $5 (note that these smaller donations don’t require the campaign to keep any record of them).118 Markosweb states that 87.8% of the traffic flowing to the site comes from China while only 4.5% is from the United States. The website contains hyperlinks that lead to the campaign’s donation page. The website also contains graphics showing the disparity between Romney’s and the President’s fundraising and a countdown clock to the date of the election. Other than the campaign solicitation letters, the website is in Chinese characters.

2. On August 9th, 2012 the Obama campaign sent a solicitation letter to “Hikemt Hadjy-Zadh,” an Azerbaijani citizen. His email address is on an Azerbaijani domain and he posts numerous solicitation letters he has received from the Obama campaign. Mr. Hadjy-Zadh reposts the complete letters on a discussion forum, including numerous hyperlinks that go directly to the campaign’s donation page.

3. A writer in Vietnam writes on a website for the Vietnam Institute for Development Studies (a government-backed think tank) and posts emails he has received from my.barackobama.com with more than 24 total links to the campaign’s donate page embedded in the emails. The website is in the Vietnamese language, hosted on a Vietnamese server, and uses a Vietnamese domain address. In one instance, a letter from Mitch Stewart, Director of the Obama campaign’s “Organizing for America,” asks for donations. Ironically, Stewart laments that the U.S. Chamber of Commerce is reportedly taking money from foreign sources. The reader is then prompted to give his name and email address and thereafter begins receiving solicitation letters for donations.

4. A Dutch blogger writing in Dutch on a Dutch website reprints an email from March 22, 2010 in which President Obama thanks his supporters for their help. “You’re welcome, Mr. President,” he writes back.

5. The Dutch blog “His Dirk” received a donation request from the campaign. Aware of the U.S. law, the blogger decided not to contribute. The blogger observed, “I imagine many non- Americans have money transferred to the Obama campaign. It’s just too easy.”

6. A member of the Italian Radical Socialist movement and an administrator of their website reposts solicitations from the Obama campaign which he reports receiving regularly for three years. “And because we are three years in his mailing list...But frankly after 3 years his letters excite me much less...”

7. A Japanese blogger named Isogaya posts a link to the Obama campaign’s donation page. When posting the link, Isogaya notes that an option in giving would be to give a gift card.

8. A Norwegian blogger posts a solicitation from the Obama campaign, including the link to the donate page. When another blogger opines that non-U.S. citizens cannot contribute because of American law, the blogger responds in Norwegian,“I have in practice given money to Obama, I had done it.”

9. A blogger in Egypt who serves on the board of the Union of Arab Bloggers posts the solicitation letters he reports to regularly receive from the Obama campaign.127 “We as Arabs and Muslims” support the “Democratic party, compared to the Republican Party,” but notes his objection to the President’s stand on gay marriage.
WIDESPREAD CORRUPTION

Although GAI's findings were most prominent with Obama for America, the “CCV loophole” is a problem across the political spectrum. The report found nearly half of Congress is at least vulnerable to fraud and foreign donations.
Of the 446 House and Senate members who have an online donation page, 47.3% do not require the three or four digit credit card security number (officially called the Card Verification Value, or the CVV) for Internet contributions.
During his run for U.S. Senate, then Republican candidate Marco Rubio’s campaign donation website didn’t have CVV protection. The protection was put in place in May 2012 after the campaign was over. The report alleges the connection to foreign websites could be a violation of the Federal Election Commission solicitation laws and at minimum put Rubio at risk for fraud in his campaign.
The Government Accountability Institute found considerable international interest in the Rubio campaign, including significant foreign traffic going to the website marcorubioforussenate.com. Links on foreign websites often took the form of videos that featured links to “donate” to the Rubio campaign.
Sukhia also mentioned the Rubio campaign in his anaylsis of the report.
“The Government Accountability Institute found considerable international interest in the Rubio campaign, including significant foreign traffic going to the website marcorubioforussenate.com.”
“GAI found numerous video links on foreign websites that featured running ads to “donate” to the Rubio campaign.”
Although campaigns may have CVV in place, organizations they take money from often times do not. For example, Massachusetts Senate candidate Elizabeth Warren has accepted more than $5.7 million from ActBlue, a fundraising organization that does not require U.S. citizenship verification or a CVV code when accepting contributions.

Because the problems of potential fraud due to a lack of CVV use are so widespread, GAI created a 50-state interactive map to show which members of Congress lack standard secure campaign donation websites.

SOLUTION FOR OBAMA CAMPAIGN

In his 2010 State of the Union Address, President Obama said, “I don’t think American elections should be bankrolled by America’s most powerful interests, and worse, by foreign entities.”

In this situation, the foreign donation problem coming from online sources can be solved and President Obama’s promise of transparency can be kept in one click by enabling all security protections and releasing the names and records on all transactions under $200 to verify Obama for America is a clean campaign operating within FEC law.

Overall, major reforms are needed to ensure foreign contributions are not interfering with or influencing elections in the United States.

Obama for America did not return calls for comment.

Republican nominee Mitt Romney gave a highly pumped-up foreign policy speech Monday that hammered President Barack Obama's foreign policy direction, including his handling of the recent attacks in Libya that left a U.S. ambassador dead.
Here's the full text of Romney's speech:
"I particularly appreciate the introduction from my good friend and tireless campaign companion, Gov. Bob McDonnell.  He is showing what conservative leadership can do to build a stronger economy.  Thank you also Congressman Goodlatte for joining us today. And particular thanks to Gen. Peay. I appreciate your invitation to be with you today at the Virginia Military Institute.  It is a great privilege to be here at an Institution that has done so much for our nation, both in war and in peace.  
For more than 170 years, VMI has done more than educate students.  It has guided their transformation into citizens, and warriors, and leaders.  VMI graduates have served with honor in our nation’s defense, just as many are doing today in Afghanistan and other lands.  Since the September 11th attacks, many of VMI’s sons and daughters have defended America, and I mourn with you the 15 brave souls who have been lost. I join you in praying for the many VMI graduates and all Americans who are now serving in harm’s way.  May God bless all who serve, and all who have served.
Of all the VMI graduates, none is more distinguished than George Marshall—the Chief of Staff of the Army who became Secretary of State and Secretary of Defense, who helped to vanquish fascism and then planned Europe’s rescue from despair. His commitment to peace was born of his direct knowledge of the awful costs and consequences of war.
General Marshall once said, “The only way human beings can win a war is to prevent it.”  Those words were true in his time—and they still echo in ours.
Last month, our nation was attacked again.  A U.S. Ambassador and three of our fellow Americans are dead—murdered in Benghazi, Libya.  Among the dead were three veterans.  All of them were fine men, on a mission of peace and friendship to a nation that dearly longs for both.  President Obama has said that Ambassador Chris Stevens and his colleagues represented the best of America.  And he is right.  We all mourn their loss.
The attacks against us in Libya were not an isolated incident.  They were accompanied by anti-American riots in nearly two dozen other countries, mostly in the Middle East, but also in Africa and Asia.  Our embassies have been attacked.  Our flag has been burned.  Many of our citizens have been threatened and driven from their overseas homes by vicious mobs, shouting “Death to America.” These mobs hoisted the black banner of Islamic extremism over American embassies on the anniversary of the September 11th attacks. 
As the dust settles, as the murdered are buried, Americans are asking how this happened, how the threats we face have grown so much worse, and what this calls on America to do.  These are the right questions.  And I have come here today to offer a larger perspective on these tragic recent events—and to share with you, and all Americans, my vision for a freer, more prosperous, and more peaceful world. 
The attacks on America last month should not be seen as random acts.  They are expressions of a larger struggle that is playing out across the broader Middle East—a region that is now in the midst of the most profound upheaval in a century.  And the fault lines of this struggle can be seen clearly in Benghazi itself. 
The attack on our Consulate in Benghazi on September 11th, 2012 was likely the work of forces affiliated with those that attacked our homeland on September 11th, 2001. This latest assault cannot be blamed on a reprehensible video insulting Islam, despite the Administration’s attempts to convince us of that for so long.  No, as the Administration has finally conceded, these attacks were the deliberate work of terrorists who use violence to impose their dark ideology on others, especially women and girls; who are fighting to control much of the Middle East today; and who seek to wage perpetual war on the West. 
We saw all of this in Benghazi last month—but we also saw something else, something hopeful.  After the attack on our Consulate, tens of thousands of Libyans, most of them young people, held a massive protest in Benghazi against the very extremists who murdered our people.  They waved signs that read, “The Ambassador was Libya’s friend” and “Libya is sorry.” They chanted “No to militias.”  They marched, unarmed, to the terrorist compound.  Then they burned it to the ground.  As one Libyan woman said, “We are not going to go from darkness to darkness.”
This is the struggle that is now shaking the entire Middle East to its foundation.  It is the struggle of millions and millions of people—men and women, young and old, Muslims, Christians and non-believers—all of whom have had enough of the darkness.  It is a struggle for the dignity that comes with freedom, and opportunity, and the right to live under laws of our own making.  It is a struggle that has unfolded under green banners in the streets of Iran, in the public squares of Tunisia and Egypt and Yemen, and in the fights for liberty in Iraq, and Afghanistan, and Libya, and now Syria.  In short, it is a struggle between liberty and tyranny, justice and oppression, hope and despair.
We have seen this struggle before.  It would be familiar to George Marshall.  In his time, in the ashes of world war, another critical part of the world was torn between democracy and despotism.  Fortunately, we had leaders of courage and vision, both Republicans and Democrats, who knew that America had to support friends who shared our values, and prevent today’s crises from becoming tomorrow’s conflicts.
Statesmen like Marshall rallied our nation to rise to its responsibilities as the leader of the free world.  We helped our friends to build and sustain free societies and free markets.  We defended our friends, and ourselves, from our common enemies.  We led.  And though the path was long and uncertain, the thought of war in Europe is as inconceivable today as it seemed inevitable in the last century. 
This is what makes America exceptional:  It is not just the character of our country—it is the record of our accomplishments.  America has a proud history of strong, confident, principled global leadership—a history that has been written by patriots of both parties.  That is America at its best.  And it is the standard by which we measure every President, as well as anyone who wishes to be President. Unfortunately, this President’s policies have not been equal to our best examples of world leadership.  And nowhere is this more evident than in the Middle East. 
I want to be very clear:  The blame for the murder of our people in Libya, and the attacks on our embassies in so many other countries, lies solely with those who carried them out—no one else.  But it is the responsibility of our President to use America’s great power to shape history—not to lead from behind, leaving our destiny at the mercy of events.  Unfortunately, that is exactly where we find ourselves in the Middle East under President Obama.
The relationship between the President of the United States and the Prime Minister of Israel, our closest ally in the region, has suffered great strains. The President explicitly stated that his goal was to put “daylight” between the United States and Israel.  And he has succeeded.  This is a dangerous situation that has set back the hope of peace in the Middle East and emboldened our mutual adversaries, especially Iran.
Iran today has never been closer to a nuclear weapons capability.  It has never posed a greater danger to our friends, our allies, and to us.  And it has never acted less deterred by America, as was made clear last year when Iranian agents plotted to assassinate the Saudi Ambassador in our nation’s capital.  And yet, when millions of Iranians took to the streets in June of 2009, when they demanded freedom from a cruel regime that threatens the world, when they cried out, “Are you with us, or are you with them?”—the American President was silent.
Across the greater Middle East, as the joy born from the downfall of dictators has given way to the painstaking work of building capable security forces, and growing economies, and developing democratic institutions, the President has failed to offer the tangible support that our partners want and need. 
In Iraq, the costly gains made by our troops are being eroded by rising violence, a resurgent Al-Qaeda, the weakening of democracy in Baghdad, and the rising influence of Iran. And yet, America’s ability to influence events for the better in Iraq has been undermined by the abrupt withdrawal of our entire troop presence. The President tried—and failed—to secure a responsible and gradual drawdown that would have better secured our gains.
The President has failed to lead in Syria, where more than 30,000 men, women, and children have been massacred by the Assad regime over the past 20 months. Violent extremists are flowing into the fight.  Our ally Turkey has been attacked.  And the conflict threatens stability in the region.
America can take pride in the blows that our military and intelligence professionals have inflicted on Al-Qaeda in Pakistan and Afghanistan, including the killing of Osama bin Laden.  These are real achievements won at a high cost.  But Al-Qaeda remains a strong force in Yemen and Somalia, in Libya and other parts of North Africa, in Iraq, and now in Syria. And other extremists have gained ground across the region.  Drones and the modern instruments of war are important tools in our fight, but they are no substitute for a national security strategy for the Middle East.
The President is fond of saying that “The tide of war is receding.”  And I want to believe him as much as anyone.  But when we look at the Middle East today—with Iran closer than ever to nuclear weapons capability, with the conflict in Syria threating [sic] to destabilize the region, with violent extremists on the march, and with an American Ambassador and three others dead likely at the hands of Al-Qaeda affiliates— it is clear that the risk of conflict in the region is higher now than when the President took office.
I know the President hopes for a safer, freer, and a more prosperous Middle East allied with the United States. I share this hope.  But hope is not a strategy.  We cannot support our friends and defeat our enemies in the Middle East when our words are not backed up by deeds, when our defense spending is being arbitrarily and deeply cut, when we have no trade agenda to speak of, and the perception of our strategy is not one of partnership, but of passivity. 
The greater tragedy of it all is that we are missing an historic opportunity to win new friends who share our values in the Middle East—friends who are fighting for their own futures against the very same violent extremists, and evil tyrants, and angry mobs who seek to harm us.  Unfortunately, so many of these people who could be our friends feel that our President is indifferent to their quest for freedom and dignity. As one Syrian woman put it, “We will not forget that you forgot about us.”
It is time to change course in the Middle East.  That course should be organized around these bedrock principles:  America must have confidence in our cause, clarity in our purpose and resolve in our might. No friend of America will question our commitment to support them… no enemy that attacks America will question our resolve to defeat them… and no one anywhere, friend or foe, will doubt America’s capability to back up our words.
I will put the leaders of Iran on notice that the United States and our friends and allies will prevent them from acquiring nuclear weapons capability. I will not hesitate to impose new sanctions on Iran, and will tighten the sanctions we currently have. I will restore the permanent presence of aircraft carrier task forces in both the Eastern Mediterranean and the Gulf region—and work with Israel to increase our military assistance and coordination.  For the sake of peace, we must make clear to Iran through actions—not just words—that their nuclear pursuit will not be tolerated.
I will reaffirm our historic ties to Israel and our abiding commitment to its security—the world must never see any daylight between our two nations.
I will deepen our critical cooperation with our partners in the Gulf. 
And I will roll back President Obama’s deep and arbitrary cuts to our national defense that would devastate our military. I will make the critical defense investments that we need to remain secure.  The decisions we make today will determine our ability to protect America tomorrow.  The first purpose of a strong military is to prevent war.
The size of our Navy is at levels not seen since 1916. I will restore our Navy to the size needed to fulfill our missions by building 15 ships per year, including three submarines.  I will implement effective missile defenses to protect against threats. And on this, there will be no flexibility with Vladimir Putin. And I will call on our NATO allies to keep the greatest military alliance in history strong by honoring their commitment to each devote 2 percent of their GDP to security spending. Today, only 3 of the 28 NATO nations meet this benchmark.
I will make further reforms to our foreign assistance to create incentives for good governance, free enterprise, and greater trade, in the Middle East and beyond. I will organize all assistance efforts in the greater Middle East under one official with responsibility and accountability to prioritize efforts and produce results.  I will rally our friends and allies to match our generosity with theirs.  And I will make it clear to the recipients of our aid that, in return for our material support, they must meet the responsibilities of every decent modern government—to respect the rights of all of their citizens, including women and minorities… to ensure space for civil society, a free media, political parties, and an independent judiciary… and to abide by their international commitments to protect our diplomats and our property.
I will champion free trade and restore it as a critical element of our strategy, both in the Middle East and across the world.  The President has not signed one new free trade agreement in the past four years.  I will reverse that failure.  I will work with nations around the world that are committed to the principles of free enterprise, expanding existing relationships and establishing new ones.
I will support friends across the Middle East who share our values, but need help defending them and their sovereignty against our common enemies.
In Libya, I will support the Libyan people’s efforts to forge a lasting government that represents all of them, and I will vigorously pursue the terrorists who attacked our consulate in Benghazi and killed Americans.  
In Egypt, I will use our influence—including clear conditions on our aid—to urge the new government to represent all Egyptians, to build democratic institutions, and to maintain its peace treaty with Israel. And we must persuade our friends and allies to place similar stipulations on their aid.
In Syria, I will work with our partners to identify and organize those members of the opposition who share our values and ensure they obtain the arms they need to defeat Assad’s tanks, helicopters, and fighter jets. Iran is sending arms to Assad because they know his downfall would be a strategic defeat for them.  We should be working no less vigorously with our international partners to support the many Syrians who would deliver that defeat to Iran—rather than sitting on the sidelines.  It is essential that we develop influence with those forces in Syria that will one day lead a country that sits at the heart of the Middle East. 
And in Afghanistan, I will pursue a real and successful transition to Afghan security forces by the end of 2014.  President Obama would have you believe that anyone who disagrees with his decisions in Afghanistan is arguing for endless war. But the route to more war – and to potential attacks here at home – is a politically timed retreat that abandons the Afghan people to the same extremists who ravaged their country and used it to launch the attacks of 9/11.  I will evaluate conditions on the ground and weigh the best advice of our military commanders. And I will affirm that my duty is not to my political prospects, but to the security of the nation.
Finally, I will recommit America to the goal of a democratic, prosperous Palestinian state living side by side in peace and security with the Jewish state of Israel.  On this vital issue, the President has failed, and what should be a negotiation process has devolved into a series of heated disputes at the United Nations. In this old conflict, as in every challenge we face in the Middle East, only a new President will bring the chance to begin anew.  
There is a longing for American leadership in the Middle East—and it is not unique to that region.  It is broadly felt by America’s friends and allies in other parts of the world as well— in Europe, where Putin’s Russia casts a long shadow over young democracies, and where our oldest allies have been told we are “pivoting” away from them … in Asia and across the Pacific, where China’s recent assertiveness is sending chills through the region … and here in our own hemisphere, where our neighbors in Latin America want to resist the failed ideology of Hugo Chavez and the Castro brothers and deepen ties with the United States on trade, energy, and security.  But in all of these places, just as in the Middle East, the question is asked:  “Where does America stand?”
I know many Americans are asking a different question: “Why us?”  I know many Americans are asking whether our country today—with our ailing economy, and our massive debt, and after 11 years at war—is still capable of leading. 
I believe that if America does not lead, others will—others who do not share our interests and our values—and the world will grow darker, for our friends and for us.  America’s security and the cause of freedom cannot afford four more years like the last four years.  I am running for President because I believe the leader of the free world has a duty, to our citizens, and to our friends everywhere, to use America’s great influence—wisely, with solemnity and without false pride, but also firmly and actively—to shape events in ways that secure our interests, further our values, prevent conflict, and make the world better—not perfect, but better. 
Our friends and allies across the globe do not want less American leadership.  They want more—more of our moral support, more of our security cooperation, more of our trade, and more of our assistance in building free societies and thriving economies.  So many people across the world still look to America as the best hope of humankind.  So many people still have faith in America.  We must show them that we still have faith in ourselves—that we have the will and the wisdom to revive our stagnant economy, to roll back our unsustainable debt, to reform our government, to reverse the catastrophic cuts now threatening our national defense, to renew the sources of our great power, and to lead the course of human events.  
Sir Winston Churchill once said of George Marshall:  “He … always fought victoriously against defeatism, discouragement, and disillusion.”  That is the role our friends want America to play again.  And it is the role we must play. 
The 21st century can and must be an American century. It began with terror, war, and economic calamity. It is our duty to steer it onto the path of freedom, peace, and prosperity. 
The torch America carries is one of decency and hope. It is not America’s torch alone. But it is America’s duty – and honor – to hold it high enough that all the world can see its light.
Thank you, God bless you, and God bless the United States of America."

Read more: http://www.businessinsider.com/mitt-romney-foreign-policy-speech-vmi-obama-virginia-military-institute-libya-2012-10#ixzz28k79K94t

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