Anonymous thief claims to have stolen Romney tax returns, demands $1m

Tax returns will be released if Romney doesn't pay up – or if someone else pays up first.

Well this could get interesting.

An anonymous person or persons on the internet (that most credible of sources) claims to have broken into a Tennessee branch of PriceWaterhouseCoopers, and stolen copies of Mitt Romney's tax returns. In their first message, released on Sunday, they write:

Romney's 1040 tax returns were taken from the PWC office 8/25/2012 by gaining access to the third floor via a gentleman working on the 3rd floor of the building. Once on the 3rd floor, the team moved down the stairs to the 2nd floor and setup shop in an empty office room. During the night, suite 260 was entered, and all available 1040 tax forms for Romney were copied. A package was sent to the PWC on suite 260 with a flash drive containing a copy of the 1040 files, plus copies were sent to the Democratic office in the county and copies were sent to the GOP office in the county at the beginning of the week also containing flash drives with copies of Romney's tax returns before 2010. A scanned signature image for Mitt Romney from the 1040 forms were scanned and included with the packages, taken from earlier 1040 tax forms gathered and stored on the flash drives.

The group will release all available files to the public on the 28 of September, 2012

A follow-up message, released on Tuesday, turns the story from a threat to blackmail attempt. The author demands $1m – in bitcoins! – or they will release the returns. They also offer to guarantee the release of the returns if they are sent $1m to a different bitcoin account:

All major news media outlets are going to be sent an encrypted copy of the most recent tax years that your company had on file since you did not have them all in a convenient electronic form. The years before 2010 will be of great interest to many. If the parties interested do not want the encrypted key released to the public to unlock these documents on September 28 of this year then payment will be necessary.

The deal is quite simple. Convert $1,000,000 USD to Bitcoins (Google if if you need a lesson on what Bitcoin is) using the various markets available out in the world for buying. Transfer the Bitcoins gathered to the Bitcoin address listed below. It does not matter if small amounts or one large amount is transferred, as long as the final value of the Bitcoins is equal to $1,000,000 USD at the time when it is finished. The keys to unlock the data will be purged and what ever is inside the documents will remain a secret forever.

Is it real? PWC have released a not-quite-denial, but confirmed that they are working with the Secret Service, so someone is taking it seriously:

We are aware of the allegations that have been made regarding improper access to our systems. We are working closely with the United States Secret Service, and at this time there is no evidence that our systems have been compromised or that there was any unauthorized access to the data in question.

Interestingly, while the thief claims to have sent proof to the county Republican and Democratic parties, TPM reports that neither of the groups have actually used the USB drives they were sent:

Burr, the Democratic Party Chairman, said he had kept the USB drive in his briefcase. At one point, Burr said, he considered plugging the drive into an old computer, but he said the “last thing I wanted to do was plug it in to a computer that I cared about.”

The Secret Service is now in possession of the drives, leaving the one loose thread dangling. What was on them? Will we ever know?


Seperately, however, something more obviously hoaxy is going around. This image is almost certainly not of Mitt Romney's tax return:

Quite apart from giveaways like the fact that Mitt Romney's accountant ought to be fired for running $20m as "business income", when he could have saved $4m in taxes by marking it up as "capital gains" instead, the return is also incredibly easily faked. Here, for instance, is the 2003 return for Mr A. Hitler:

Other giveaways include the fact that Romney's actually released forms were filled in with a typewriter, not a laser printer, and that the numbers in the fake return don't actually add up. Literally. There is $343,332 missing from the "total" column.

Mitt Romney waves to the people. Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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In Russia, Stalin is back

New statues and memorabilia are appearing, as Russians overlook the terror to hark back to a perceived era of order and national safety.

It was during the Victory Day march to commemorate those who fought in the World War Two, the Great Patriotic War (as it is known in Russia) that I saw the face of Stalin. A young woman carried a crimson flag with the image of the Leader which appeared amidst the black and white photographs of grandparents remembered on the seventieth anniversary of the victory over the Nazi Germany. Just a few months later I was back in Moscow to face the fact that the fleeting image of Stalin, like a seed dropped into rich soil, has sprouted everywhere. At the busy Moscow Domodedovo airport you can now buy souvenir mugs and badges featuring a man with a moustache, coiffed hair and unsmiling eyes; men wearing Stalin T-shirts walk the streets of Moscow and just in time for the festive season 2016 calendars with the twelve photos of the ”Red Tsar” are spread across the counters of the book shops. Most shockingly, new statues of Stalin have appeared in Lipetsk, Penza and Shelanger, a village in a Russian republic Mari El. The monuments were commissioned and erected by the Russia’s Communist Party. Its leader, Gennadiy Zyuganov, promised new statues to be built in Irkutsk in Siberia and in Donetsk in Eastern Ukraine. Charles de Gaulle, the former French president was right: “Stalin didn't walk away into the past, he dissolved into the future.”

According to a January 2015 survey by an independent, non-profit organisation, founded by a Russian sociologist Yuri Levada, 52 per cent of Russians think that Stalin played a “definitely positive” or ”mostly positive” role in Russia’s history. Stalin’s positive image today is cultivated mostly through his association with the Great Patriotic War. Throughout 2015 the Russian media have been obsessively commemorating the 70th anniversary of the victory over the Nazis, with Stalin, the generalissimo, at its helm. Political psychologist Elena Shestopal, quoted by the Levada Centre, explains that the positive opinion of Stalin is a reflection of the society’s demand for order and national safety. In her view, Russians associate Stalin with the role of the father: strict, demanding and powerful.

Stalin’s resurrection is astounding not least because his role in history and his “personality cult” have been consistently condemned in Russia since 1956. Three years after Stalin’s death, the then General Secretary Khrushchev denounced it at the Communist Party conference. Stalin’s body was removed from the Red Square mausoleum; the monuments commemorating him were taken down and destroyed. During glasnost, the openness period initiated by Gorbachev, some state archives revealing the extent of Stalin’s purges and mass repressions were made public. My own grandfather, Aleksandr Bakunin, who devoted his entire life to the history of the Russia’s Communist Party and its accomplishments, set to work in his seventies to research the newly available materials and write a trilogy about the history of Soviet totalitarianism. In popular literature, Aleksandr Solzhenitsyn made stunning revelations about mass repressions and his personal experiences as a prisoner in a labour camp in his novel The Gulag Archipelago, first openly published in a Russian literary magazine in 1989. In Gorbachev’s days Nikolai Svanidze, a popular Russian TV host, historian and journalist – related to Stalin through his first wife, Ekaterina (Cato) Svanidze – declared that Stalin and Hitler were cut from the same cloth on national television. I do not believe that such a statement would be made by the Russian media today. 

An example of a “Red Tsar” calendar

With knowledge about collectivisation and famine of the 1930s, mass arrests and forced labour, the culture of terror and the totalitarian governance, it is difficult to understand the current sentiment in Russia which makes it acceptable to print Stalin’s image onto T-shirts and mugs. Russians, who approve of Stalin, credit him with turning around the backward agrarian economy with its mostly rural population into an economic and scientific powerhouse, responsible for sending the first man into space. It was allegedly Churchill who said that “Stalin inherited Russia with a wooden plough and left it in possession of atomic weapons”. These sympathisers hail rapid industrialisation and economic progress, forgetting its costs. Mayakovskiy put it well in his poem about the construction of Kuznetsk: “The lips are turning blue from the cold, but the lips recite in unison: ‘In four years this will be a garden city!’”

Stalinists are especially vocal in giving their hero credit for winning the war. By the end of 1930s, the Soviet Union had become the largest economy in Europe and in the 1940s it was the defence industry that carried the Soviet campaign against Hitler. Stalin united people and inspired them to fight the enemy both on the front line and in the factories, according to those who believe in Stalin as “the Leader”. “The European nations are being ungrateful”, they say. “Stalin saved them from the Nazis.” It is inconvenient to remember that it was Stalin who had signed a non-aggression pact with Hitler in August 1939 and had been falsely assured that Germany would not invade the Soviet Union. Stalin disregarded several reports from his own intelligence agents and defected German spies about the advancing of Hitler’s army in 1941. Millions of lives were lost as a result in the first months of the war. As for the gratitude, the Baltic and the eastern European nations are quite right to dispute the post-war reorganisation of Europe, implemented after the Yalta conference, when Stalin, Roosevelt and Churchill agreed to divide their spheres of influence.

After the war, the USSR became the second most powerful nation in the world and a force to be reckoned with in geopolitics, economics and technology. Previously illiterate peasants, Soviet citizens enrolled in universities, became engineers and doctors, went to the theatre and cinema, read and became part of the Soviet miracle. There is a great deal of nostalgia among the older generation in Russia, who mourn the ”golden decades” of the Soviet Union and wish for Russia’s international status to climb again. “We lived better with Stalin than with anyone else who came to power after him. He looked after us. Today only oligarchs live well,” said a Russian woman in her late seventies. One Russian blogger writes that mass repressions were necessary to align the Soviet consciousness to the new ideology, to replace individualism with collective responsibility. He believes that the terror was necessary to maintain order. There is also rising support among the younger generation who see parallels between Putin and Stalin, the two rulers who favour autocracy and ubiquitous state control.

Already in his seventies, my grandfather wrote two books about the genesis and the evolution of the totalitarianism in the Soviet Union. His third book was meant to be about the fall of Stalinism. Despite several heart attacks and a stroke, he continued working. He died from the fatal heart attack, his book unfinished. Perhaps, it was meant to be. Section 86 of the German Criminal Code makes it illegal to display Nazi images and to hail Hitler in Germany. In Russia, Stalin has never been similarly condemned. The Russian government ostensibly does not object to the new statues of Stalin being erected just 60 years after they had been taken down. The nation that has forgotten its own history is terrifying.