The Unresolved Prior FBI Counterintelligence Investigation of Danchenko
Importantly, and as discussed in Section IV.D.1.c, the FBI knew in January 2017 that Danchenko had been the subject of an FBI counterintelligence investigation from 2009 to 2011. In late 2008, while Danchenko was employed by the Brookings Institution, he engaged two fellow employees about whether one of the employees might be willing or able in the future to provide classified information in exchange for money. According to one employee, Danchenko believed that he (the employee) might be following a mentor into the incoming Obama administration and have access to classified information. During this exchange, Danchenko informed the employee that he had access to people who were willing to pay for classified information. The concerned employee passed this information to a U.S. government contact, and the information was subsequently passed to the FBI. Based on this information, in 2009 the FBI opened a preliminary investigation into Danchenko. The FBI converted its investigation into a full investigation after learning that Danchenko (i) had been identified as an associate of two FBI counterintelligence subjects and (ii) had previous contact with the Russian Embassy and known Russian intelligence officers. Also, as discussed in Section IV.D.1.c, at that earlier time, Agents had interviewed several former colleagues of Danchenko who raised concerns about Danchenko’s potential involvement with Russian intelligence. For example, one such colleague, who had interned at a U.S. intelligence agency, informed the Office that Danchenko frequently inquired about that person’s knowledge of a specific Russian military matter.
Meanwhile in July 2010, the FBI initiated a request to use FISA authorities against Danchenko, which was subsequently routed to Department attorneys in August 2010. However, the investigation into Danchenko was closed in March 2011 after the FBI incorrectly concluded that Danchenko had left the country and returned to Russia.
Our review found no indication that the Crossfire Hurricane investigators ever attempted to resolve the prior Danchenko espionage matter before opening him as a paid CHS. Moreover, our investigation found no indication that the Crossfire Hurricane investigators disclosed the existence of Danchenko’s unresolved counterintelligence investigation to the Department attorneys who were responsible for drafting the FISA renewal applications targeting Carter Page. As a result, the FISC was never advised of information that very well may have affected the FISC’s view of Steele’s primary sub-source’s (and Steele’s) reliability and trustworthiness. Equally important is the fact that in not resolving Danchenko’s status vis-à-vis the Russian intelligence services, it appears the FBI never gave appropriate consideration to the possibility that the intelligence Danchenko was providing to Steele – which, again, according to Danchenko himself, made up a significant majority of the information in the Steele Dossier reports – was, in whole or in part, Russian disinformation.
Danchenko’s Relationship with Charles Dolan
During the relevant time period, Danchenko maintained a relationship with Charles Dolan, a Virginia-based public relations professional who had previously held multiple positions and roles in the Democratic National Committee (“DNC”) and the Democratic Party. In his role as a public relations professional, Dolan focused much of his career interacting with Eurasian clients, with a particular focus on Russia. As described in Section IV.D.1.d.ii, Dolan previously conducted business with the Russian Federation and maintained relationships with several key Russian government officials, including Dimitry Peskov, the powerful Press Secretary of the Russian Presidential Administration. A number of these Russian government officials with
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