"Prominent Financier" Russian Spy Targeted Is ID'd

Alan Patricof, a venture capital figure and the finance chairman of Clinton's Senate campaign, as well as a top presidential campaign fundraiser, has been identified as the target of activities by alleged Russian spy "Cynthia Murphy". Patricof has confirmed to the WaPo that he was the target:

"It's just staggering," said Patricof in a telephone interview. "It's off the charts."

Patricof made clear that he and the alleged spy, known as Cynthia Murphy, "never discussed anything but paying the bills and taxes in normal phone calls or meetings." For three years, he has been a client of the Manhattan firm Morea Financial Services, the tax service that employed Murphy.

"She never once asked me about government, politics or anything remotely close to that subject," Patricof said...A shocked Patricof reiterated in the interview that, "We never discussed anything but paying the bills."

According to a federal complaint filed in New York, the alleged spy's superiors apparently saw promise in the connection to the unidentified financier. They suggested that he could supply "remarks re US foreign policy," and "roumors" about White House internal "kitchen."

"This is the most wild story ever," said Patricof.

Patricof is the founder of Apax Partners, one of the largest private equity firms. Patricof was an early investor in, among many others, Patricof was an early investor in venture capital and has been involved in the development of numerous major companies including America Online, Office Depot and Apple Computer.

Roubini: I Never Had One on One with the Russian Spy

FT has the details:

Turns out erstwhile über-bear — and sometime ladies’ man – Nouriel Roubini was casually acquainted with Ms Anna Chapman, one of the 10 alleged Russian spies arrested in the US. Chapman, it seems, cut a somewhat glamorous swathe through the New York social scene, and, according to Roubini, the two “may” have met socially at a couple of parties, with Chapman befriending him on Facebook.

But, Roubini says he never had a “one to one conversation or meeting with her.”

Russian Spy Worked for The Conference Board

The recently arrested alleged Russian spies appeared to have a strong interest in financial matters. We know from the original complaint that the spies relayed some kind of "very valuable" information back to Moscow about gold.  Now comes word, via WSJ, that one of those arrested worked at the economic research organization, The Conference Board.

Mikhail Semenko, who was arrested on Sunday for spying for Russia, worked from August 2008 until January 2009 at The Conference Board.

The Conference Board publishes the monthly Consumer Confidence Index, which is followed by Wall Street very closely and can often lead to a market moving event, once the number is released.

The most recent downturn in China's stock markets was the result of a downward revision to the Leading Economic Indicator for China that is put out by the Conference Board.

Facebook Video of Alleged Russian Spy

Notorious Economics Student: Anna Chapman

Move over Osama bin Laden and Mick Jagger (Both studied economics in college), alleged Russian spy Anna Chapman has a masters degree in economics, according to NyPo.

HOT RUMOR: Roubini and The Russian Spy

This totally unsubstantiated rumor comes courtesy of Dealbreaker. The only reason it makes a tiny bit of sense is that:

A. As I have pointed out many times, Nouriel Roubini is the most connected economist in the world. On New Year's eve, he was photographed partying at Russian oligarch Roman Abramovich's party, where he could have possibly met alleged Russian spy Anna Chapman.

B. He is a consultant to most of the central banks in the world. He is as tied in as they get, a great target for spies. And Roubini would easily fall for the charms of alleged Russian spy Anna Chapman (pictured above).

Here's Dealbreakers' complete unsubstantiated report:

Did Dr. Doom Tap One Of The Russian Spies?

By Bess Levin

 From the mail bag:

Saw Roubini and Anna Chapman at a party in Chelsea together a couple weeks ago. Warm, familiar conversation between the two; allusions to dates, frequently being together, etc. The Professor limiting himself to one woman a night is the real news, IMO. The one he picks to spend two dates with happens to be a Russian spy?

Ruusian Spy Anna Chapman and the Linked In Groups She Belongs To

Now this is what I call serious spy networking. Chapman belongs to all these LinkedIn Groups:

On Startups - The Community For Entrepreneurs

Media Professionals in Russia

eMarketing Association Network

ENTREPRENEURS-GET FUNDED

Online Advertising Professionals

Global Private Equity & Venture Capital

Russian Speaking Professionals

New York Venture Community

Angel Investors

GoBigNetwork Startup Community

Online Marketing Network

New York Russian Club

Social Media Marketing

Structured Finance World

Russia & CIS Real Estate

NYC Real Estate

Real Estate Finance & Investment Society

Priavte Equity/Venture Capital Central and Eastern Europe

CleanTech & Renewable Energy Finance Forum

Commercial Real Estate Referral Network - Powered by IvyExec.com

Real Estate Financial Professionals

National CEO Network

Game Entertainment Europe

Distressed Real Estate Investment

High-Tech start-ups in Russia

New York Entrepreneur Week

Private Property

Behind the Timing of Spy Arrests

My first reaction to the timing of the arrests of the Russian spies was,  "President Obama sure knows how to stick a finger in someone's eye,"  given that President Obama and Russian President Medvedev were photographed having hamburgers together just days earlier, during a Medvedev visit to the White House. But was Obama behind the timing or was it rogue elements in the U.S. government?

The Russians seem to be thinking that the arrests won't be good for U.S.-Russian relations, but that instead of Obama directing the timing of the arrests it may be other operators within the U.S. government.   FT reports:

Sergei Lavrov, Russia’s foreign minister, echoed the prevailing consensus when he said ... that the timing of the arrests “was very artfully chosen”, implying that it was designed to do maximum damage to bilateral relations.

Vladimir Kolesnikov, deputy chairman of the security committee in the Russian state Duma, or lower house of parliament, said that the scandal was “provocation” inspired by “structures that live with the old baggage”, in other words, hard liners. The scandal, he said was “a blow aimed at [US President Barack] Obama.”

“I have no doubts that the our reaction will be adequate,” he said. “It is no secret that their special services continue to work here,” adding that Russia could potentially prosecute American “illegals” working in Russia.

Nikolai Kovalev, the ex-director of the Federal Security Service, the successor to the KGB, told Interfax news agency “someone is trying to put a virus into the reset programme”.

Russian Spy Who Provided Secrets to Moscow

Russian national Anna Chapman was part of a Russian spy team busted Sunday by the FBI. The spies were under surveillance for a decade.

Another member of the spy group, also a female who went under the cover name "Cynthia Murphy," discovered secrets about the gold market that Moscow reported back to her were "very valuable" and told her that the information was passed on to Russia's Finance Minister.

At her arraignment last night, Chapman was held without bail as federal prosecutor Michael Farbiarz called her a "highly trained agent" and a "practiced deceiver," NyPo reports.

Ten Russians Arrested in the U.S. as Spies; Relayed Report on Gold Market

Eight individuals were arrested Sunday for allegedly carrying out long-term, "deep-cover" assignments in the United States on behalf of the Russia, the Justice Department announced today. Two additional defendants were also arrested Sunday for allegedly participating in the same Russian intelligence program within the United States.

Some of the Russians adopted Irish names in their spy work, including using the names Murphy and Foley.

Information they were seeking was pretty broad based but it included at least one report about gold. Moscow relayed back to the spies that the gold report was "very valuable" and reported that it was passed on to Russia's finance minister.

Also, according to the complaint, one spy, "Cynthia Murphy," was developing a relationship with a prominent New York financier. The financier is apparently a big political money raiser and has a close friend in the Cabinet.

The most interesting question is, of course, what kind of information could the spies have turned over about gold that Moscow deemed as "very valuable"? And let the guessing game begin as to who the "prominent New York financier" is.

It should also be noted that this decade long investigation was publicly revealed just days after Obama and Russian President Medvedev shared hamburgers together.

Obama sure knows how to stick a guy in the eye, doesn't he?

Below are the two complaints. The second complaint is the juicy one.

Complaint in Chapman and Semenko Case

Complaint in Mestos Case

HOT Russian Spies Arrested in U.S.: Reports Relayed Included Info about Gold Markets

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