<![CDATA[404 Media]]>https://www.404media.co/https://www.404media.co/favicon.png404 Mediahttps://www.404media.co/Ghost 5.74Fri, 01 Dec 2023 21:14:55 GMT60<![CDATA[Behind the Blog: Pickleball Drama, Auto-Generated Women, and Really Big Drone Contracts]]>https://www.404media.co/behind-the-blog-pickleball-conference-fake-speakers-drones/6569f4767be9350001581f4fFri, 01 Dec 2023 17:23:26 GMT
Behind the Blog: Pickleball Drama, Auto-Generated Women, and Really Big Drone Contracts

This is Behind the Blog, where we share our behind-the-scenes thoughts about how a few of our top stories of the week came together. This week, we discuss uncovering government defense contracts, revealing fake "auto-generated" female speakers, and thoughts on FOIA.

JOSEPH: Beyond FOIA and court records, I have another, perhaps even bigger, obsession: U.S. procurement databases. There are a few sites for this (my favourite is FPDS.gov, just because I am very used to the UI) and they absolutely rule for finding new stories. I used one today to reveal the mystery customer that bought Anduril’s new autonomous aircraft. 

First, I saw Palmer Luckey’s tweet about the new Roadrunner aircraft. I then saw a bunch of coverage, including from Bloomberg and defense trade publication Defense One. Because these articles included in-depth interviews with Luckey and other people from Anduril, it was a safe bet the outlets had learned of this news under embargo. That is, they were told about it by Anduril beforehand, performed interviews and took photos, with the understanding they would only publish it once Anduril publicly announced the new product. This is all very normal and standard.

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<![CDATA[The Mystery Customer for Palmer Luckey’s Aircraft-Killing Drone Is U.S. Special Forces]]>https://www.404media.co/anduril-roadrunner-us-special-forces-ussocom/6569f4267be9350001581f41Fri, 01 Dec 2023 15:14:49 GMT
The Mystery Customer for Palmer Luckey’s Aircraft-Killing Drone Is U.S. Special Forces

U.S. Special Operations Command (USSOCOM) has paid over ten million dollars for a new autonomous aircraft made by Anduril, the defense startup run by Palmer Luckey, which is capable of carrying explosive warheads and taking down other aircraft, or re-landing itself if it doesn’t engage in an attack, 404 Media has found. 

On Friday, Anduril announced the existence of the person-size drone called “Roadrunner.” In his own Twitter thread, Luckey said Roadrunner has been “operationally validated with an existing U.S. government customer,” but did not name the agency. Multiple publications which appeared to have the news under embargo, including Bloomberg and Defense One, added that the company is not allowed to say which customer bought the technology. 

It took 404 Media around 25 seconds to find the customer is likely USSOCOM. 404 Media reviewed a procurement record that says USSOCOM signed for a piece of technology described as “Roadrunner,” and also found a reference to the technology in a Department of Defense budget estimation document for 2024.

“Roadrunner CUxS Hardware,” one procurement record reads. The listing was for $12.5 million between the headquarters of USSOCOM and Anduril last December, the record says. Bloomberg reported that each Roadrunner costs in the range of “low six figures” according to the company, and that Anduril expects costs to go down as it ramps up production.

CUxS stands for “Counter Unmanned Aerial System,” according to the budget estimation document. That document suggests USSOCOM may ultimately spend more on Roadrunner units, earmarking $19.15 million for “an increase” to support CUxS and “accelerate Roadrunner Group3 interceptor development, testing and operational assessment.”

Roadrunner comes in multiple variations, according to Anduril’s own press release. The base unit is a “twin-jet powered autonomous air vehicle” which takes off vertically and which can return to ground too. One variation is “Roadrunner-M” which Anduril describes as a “high-explosive interceptor” which could be used to target various aerial threats. In a video published along with the announcement, a Roadrunner-M appears to intercept and then crash into another aircraft, destroying it. 

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Do you work at Anduril? Did you used to? I would love to hear from you. Using a non-work device, you can message me securely on Signal at +44 20 8133 5190. Otherwise, send me an email at joseph@404media.co.

Anduril puts Roadrunner-M into the context of countering other drones. “Malicious actors are increasingly using state-owned and commercially-available drone technology to threaten the personnel, infrastructure and assets of the United States and our allies around the world. Anduril already provides a counter UAS family of systems to protect against such threats, and Roadrunner-M is our newest addition to that family. Roadrunner-M was designed to address threats that extend across legacy air defense echelons, combating adversary attempts to design around gaps in current air defense architectures,” the press release reads. 

It adds that Roadrunner-M can be controlled by Lattice, Anduril’s operating system, and that a single person can operate multiple Roadrunners at once. On Wednesday, 404 Media reported that Customs and Border Protection is testing Anduril’s AI-powered surveillance towers in the Great Lakes region on the U.S.-Canada border. Those towers also integrate with Lattice.

In January last year, Anduril announced it was awarded a nearly billion dollar indefinite delivery, indefinite quantity contract with USSOCOM to support the agency’s CUxS efforts. That work will be performed within and outside the continental U.S., according to another procurement record 404 Media reviewed.

Neither USSOCOM or Anduril immediately responded to a request for comment.

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<![CDATA['FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show]]>https://www.404media.co/fyi-pickleball-drama-the-pickleball-lobby-is-overwhelming-local-governments-nationwide/6568aa467be935000157eea9Thu, 30 Nov 2023 16:29:06 GMT
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This article was primarily reported using public records requests. We are making it available to all readers as a public service. FOIA reporting can be expensive, please consider subscribing to 404 Media to support this work. Or send us a one time donation via our tip jar here.
'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show

In late September, an arsonist set fire to a storage shed at Memorial Park used by the Santa Monica Pickleball Club, torching thousands of dollars worth of nets, rackets, balls, and other pickleball equipment. 

“Unknown suspect(s) caused a fire that damaged city property (Tennis Court Gate),” a police report I obtained using a public records request says. The report adds that there is body camera footage of the incident and police-shot photos, but the city refused to release them to me because there is an ongoing investigation. The arsonist is still at large. 

We still don’t know the motive behind the arson, but the news caught my attention because it happened while I was in the midst of trying to understand what I’ve been calling the pickleball wars. For the last few months I’ve been trying to understand what’s been happening behind-the-scenes in cities large and small by filing public records requests aimed at learning how common beefs about pickleball are, and what’s causing them. 

If you don’t already know about “the fastest growing sport,” Pickleball is kind of like tennis, but played on a court a quarter of the size using a plastic ball similar to a wiffle ball and a hard racket. The smaller court, hard ball, and hard racket means that pickleball is louder than tennis, a fact that is brought up very often by homeowners and homeowner associations who claim, somewhat dubiously, that the noise from pickleball drives down their home values.

My hypothesis going into researching this article was that people who live in cities are mad at the noise created during the act of playing pickleball and they have probably complained to the government about it. What I found was surprisingly more complex: Thousands of pages of documents I’ve reviewed show that pickleball’s surging popularity is overwhelming under-resourced parks departments in city governments all over the country. 

This may sound frivolous, but the documents also show what happens after we fail to build things in America: Compromises are made, and our cities’ already strapped public space and public resources become increasingly crowded and difficult to use. People fight about it.

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show
A legal threat sent to the Los Angeles government about proposed pickleball courts. Obtained via public records request.

This is happening in the “normal” NIMBY ways, where homeowners endlessly threaten cities with lawsuits and other unpleasantness if they dare to build new pickleball courts, which leads to delays, demands for expensive systematic sound and environmental assessments, and economic impact reports before any new park infrastructure investments. 

“Pickleball has overrun South Street, no more bookings.”

But pickleball players aren’t powerless bystanders being screwed over by NIMBYs. There is both an organized pickleball lobby that operates through a “governing body” called USA Pickleball, as well as run-of-the-mill pickleball players who, of their own volition, email city government and show up to meetings to advocate for more places to play pickleball. The broader pickleball lobby is winning access to more and more public spaces, which is regularly angering people who play sports that aren’t pickleball. This is because, as NIMBYs prevent cities from building new pickleball courts, stressed out parks and recreation department workers facing pressure from pickleball players have converted existing tennis courts, basketball courts, and roller hockey courts into dual-use pickleball courts, creating regular turf wars between players of those sports.

After scanning thousands of pages of documents, I found:

  • In Boston, tennis players are furious that pickleball players figured out how to book nearly all of the South Street courts all day every day for months on end, leading the reservations director there to tell staff: “Pickleball has overrun South Street.” Meanwhile, roller hockey players in East Boston complain that pickleball courts created with tape on their courts and shared facilities have created a “PICKLEBALL MESS” that have left children wanting to play hockey crying when they’ve been kicked off the courts by permit-holding pickleball players. 
  • In San Francisco, city employees created something called the “Larsen Compromise,” in which a tennis court and a basketball court are being converted to pickleball courts. This has seemingly upset everyone, pickleball players and non-players alike.
  • Los Angeles has faced legal threats and demands to run a series of environmental, noise, and economic analyses from NIMBYs who say pickleball courts will harm their quality of life and damage their home values. 
  • Dallas told me that it had more than 100,000 emails mentioning the word “pickleball” and could not complete my request, while the city of Fort Lauderdale says it has 35,242 emails mentioning “pickleball” from 2023 and would need $10,290.66 to produce them. 
  • An elaborate lobbying campaign in New York City that involved converting handball, tennis, and basketball courts into pickleball courts.
  • In every city, I read hundreds of complaints from pickleball players who claimed tennis players were hogging all the courts. And I read hundreds of complaints from tennis players who said that, actually, pickleball players are the court hoggers.

As mentioned, USA Pickleball is the national governing body of the sport of pickleball. It has 2,200 “ambassadors” who “have pledged to promote the sport of pickleball and the USA Pickleball in the local area that they represent. They are individuals or couples who work with the communities, clubs, and other various recreational facilities to guide and help build pickleball programs for all to enjoy,” according to the organization’s website. Pickleball ambassadors must apply to the program and, once accepted, are given a “toolkit” for promoting pickleball. 

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Do you know anything else about USA Pickleball, pickleball ambassadorship, or pickleball drama? I would love to hear from you. Using a non-work device, you can message me securely on Signal at +1 202 505 1702. Otherwise, send me an email at jason@404media.co.

Melissa Zhang, a spokesperson for USA Pickleball, declined to make “ambassador-only” documents available to me, but told me in a phone interview that ambassadors are the sport’s “boots on the ground” to expand access to the sport.

“We equip our ambassadors with communications for city councils, HOAs,” she said. “We definitely don’t want to be a burden or a hindrance to other sports. We try to act in the best interest of everyone involved instead of just bulldozing ahead. We’re all trying to cooperate and I think the turf war stories the media has painted are obviously in a pretty negative light. We obviously want to celebrate the fact that pickleball has brought so many benefits to so many people and of course we have been involved in that growth. But obviously we’re not trying to do it at the expense of other people.”  

The emails I obtained from cities around the country show that some ambassadors are highly engaged in pushing for existing basketball or tennis courts to be converted into pickleball courts, and in lobbying for new courts to be built.

“Do any of you have any experience with managing USA Pickleball Ambassadors and drop-in pickleball facilities? We have a very passionate ambassador whose passion is not being used for the best interest of the city, and is actually inciting a lot of emotion amongst players,” a parks employee of Huntington Beach, California wrote to a national listserv of parks and recreation employees. The recreation manager for the city of Brookings, South Dakota, suggested that the city reach out directly to USA Pickleball to ask them to discipline the person. Huntington Beach has been very slow to provide any relevant documents from my public information requests there. 

But in New York City, documents obtained by journalist Jake Offenhartz, who wrote about a specific pickleball turf war in the city, show several USA Pickleball ambassadors repeatedly lobbying the parks department with photos of “underutilized” space in the city, a series of presentations about the sport of pickleball and where courts should be built or converted, mock ups of what it would look like to put six pickleball courts on top of two tennis courts or to simply place pickleball courts on top of basketball and handball courts, a “history of pickleball,” and emails about the travesty of New York City’s lack of attention to the sport of pickleball: “We are the only major city without designated courts,” one USA Pickleball ambassador wrote to the city. “What an embarrassment.” (Offenhartz obtained the documents after publishing his initial story and gave me permission to use them for this article.)

Eventually, the city began to allow pickleball to be played at several different mixed-use outdoor spaces around the city. Immediately, the city received “complaints that the children and others can’t use the area when the pickleball users are there,” an NYC parks employee told a USA Pickleball ambassador. “I’m afraid if people are going to use pickle ball here for hours on end during the after school hours and on weekends it may be a real problem because it prevents others from using the area. Perhaps this location won’t work.”

The USA Pickleball ambassador responded that “there was a man that came by throwing the football with his son. There was plenty of open space,” they explained, adding that there was also a kickball game going on: “They play kickball and take up the whole asphalt area and the ball goes flying nearly missing people constantly … that is the most dangerous thing I’ve ever seen … my feeling is that the pickleball courts are not the issue.” 

Later in the email exchange, the USA Pickleball ambassador asked for the parks employee’s phone number. Pickleball players began inundating them with calls, according to the emails: “Your people are calling the commissioner’s office about the playground claiming that we are removing their courts. That’s not accurate and not appropriate,” the parks employee wrote. “We are trying to help your group and have helped your group. Please have them stop this.”

Elsewhere in the city, other USA Pickleball ambassadors successfully won the right to draw temporary pickleball court lines on a handball court. There was just one problem, it wasn’t enough. The ambassadors’ solution: they said they could just draw permanent lines immediately on additional handball courts. “We have the stencils, paint, and machine power to professionally paint lines for two more courts in this area” on existing handball courts, the ambassador wrote.

“I’m not comfortable painting permanent lines or making other changes without more review,” a parks employee wrote back. 

USA Pickleball’s Zhang, while not commenting specifically on what happened in New York City, said that the group “did some significant education during our Ambassador retreats this past year. This focused on proper placement of courts and taking into consideration multiple factors prior to advocating for court space or city resources. We want a global view and to provide resources so officials can make educated decisions to best serve their constituents.”

A Pickleball Committee 

In Los Angeles, members of the city’s Department of Recreation and Parks’ (DPR) “Pickleball Committee” have, among other things, asked LA city employees to go take sound decibel readings at Palisades Recreation Center, a public park in one of the city’s most expensive neighborhoods. 

This happened after a local resident’s lawyer sent the city a letter vehemently opposing planned pickleball courts there. 

“Frequent pickleball sounds are typically about 70 dBa at about 100 feet away from the strike of the ball. Residents in homes located in a quiet residential area, that are within 100 feet from pickleball courts are used to noise levels of 40 dBa, therefore the level of pickleball noise is 30 decibels louder,” the letter, states, adding that sound-deadening walls “are not effective (for reasons of fundamental physics) and will not reduce the noise to acceptable levels.”

“My clients believe that they will suffer economic harm with a drop in their home values and the pickle ball games will cause ‘unreasonable interference with’ their ‘enjoyment of their property’ if pickleball is allowed,” it adds. The letter also demanded “a traffic and parking impact study for the surrounding neighborhood.”

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show

The city’s sound metering found sound levels that ranged between 41.6 and 67.6, though the higher end of this was on the court and immediately next to it. Notably, the city found “most of the noise levels were from talking and laughing,” not pickleball. A city discussion about noise barriers also had to take into account whether or not the barrier would be "visually appealing."

In any case, the noise associated with pickleball is something that came up over and over again in internal emails from the parks department and in resident complaints. One resident’s lawyer sent a letter about pickleball and two other apparent scourges—bocce ball and children’s birthday parties in the park. An email between city employees stated that a “sound mitigating barrier” was installed between the park and this person’s home by the city and that normal noises created at parks that the city cannot litigate or limit “includes patrons talking, laughing, clapping, cheering, coaching, officials’ calls, and sports whistles.”

Additionally, homeowners and their neighbors in Pacific Palisades banded together to hire an independent audiologist to take their own readings in addition to the city’s readings. Internally, city employees have disagreed as to where pickleball belongs and where it doesn’t: “I received this email and was shocked,” a recreation facility director for the Los Angeles Parks Department wrote in response to an email stating that a specific tennis court was going to be converted to a pickleball court. “The noise is pretty bad for the public.”

The city of Los Angeles did not respond to a request for comment, but a spokesperson for LA County told me that it “recognizes that pickleball is one of the fastest growing sports in the United States and the demand for places to play pickleball is increasing in L.A. County. As such, DPR is currently developing a departmental policy to evaluate and accommodate public requests for pickleball courts through a consistent and equitable process. Several of the factors DPR is considering are how to mitigate the potential operational, noise, and other impacts of pickleball.” 

A Nationwide Problem

In Boston, the popularity of pickleball began taking over tennis courts and roller hockey courts throughout the city. A permitting system for tennis courts that also allowed pickleball was so overwhelmed with recurring pickleball bookings that it had become impossible to book tennis courts for tennis, or to drop-in and play tennis. Internally, Paul McCaffrey, the city’s director of permitting for the parks department told colleagues: “Pickleball has overrun South Street, no more bookings.” McCaffrey referred me to the city’s PR department, which did not respond to a request for comment.

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show
A calendar for South Street tennis/pickleball courts shows only pickleball bookings

One tennis player told the city in repeated emails that South Street tennis courts had been “monopolized” by well-organized pickleball players, who had figured out how to book out the courts, while children and teens who play tennis might not know how to reserve them. There are two tennis courts at South Street, but those two courts can be turned into six pickleball courts with temporary nets, and one of the courts is also a basketball court. The resident said that it was essentially impossible to play tennis there anymore. 

“I am concerned with the frequency and duration of pickleball reservations at the south street courts and also how groups of pickleball players can occupy the courts for hours and hours by saving the court for players by having a net set up,” the resident wrote, adding that the system “creates an exclusive pickleball use from dawn to dusk … Pickleballers set up their nets on part of the tennis court while I am trying to play with my kids. They are rude and inconsiderate. The city needs to deal with this … it is particularly hard for me to stomach this situation after the pickleball crowd illegally wrecked the courts of the past five years with electrical tape.” 

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show
The end of a very long thread about sharing roller hockey courts in East Boston

This resident wasn’t wrong—a calendar of reservations for the courts in question I obtained show pickleball reservations every single day and no tennis reservations. “Dear Sir: The unprecedented demand for pickleball is concerning,” McCaffrey told a resident. “I have discovered that Boston is not the only municipality struggling with this surge.” 

One roller hockey court in East Boston has been turned into a dual purpose pickleball/roller hockey court. Roller hockey players suddenly began getting their skates tripped up on taped-down pickleball lines and fighting over who has rights to the court. The city tried to solve this tape issue by painting pickleball lines (which is smoother than tape), which created an entirely new problem: because the painted lines were permanent, people began to see the disputed court as a pickleball court, not a roller hockey one.

“So here we are on day 1 of this pickleball MESS, and you have the pickleball people at the court kicking people off that are trying to play hockey,” one email to the city from a roller hockey player said. “It was said when we were told about the lines being painted [vs taped on], that the cost would remain hockey first and this man is literally telling children they can’t play hockey now. This needs to be fixed … please let me know what is going to be done with this horrendous situation.”

A city employee told the writer of that email that they were trying to come up with a solution. The resident replied: “It was not fair to East Boston and the STILL EXISTING hockey community for these lines to be painted on the hockey court and that is the bottom line here,” the resident said. “Why not slap down a pickle ball court for these people. It takes a week to have that done, and MIND YOU, were talking about ALL adults. A 5 year old child was told he couldn't play hockey yesterday. He was in tears and literally threw himself down on the court, as a little protest. Kids don't play pickleball.”

The employee responded: “It’s still a hockey court. Any one has the ability to play hockey there. This cost is both hockey and pickleball,” the employee said. “I think it’s a false dichotomy to place me on any particular side [pickleball or hockey].” After sending that email, the employee forwarded her response to her colleagues: “FYI Pickleball DRAMA,” she said.

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show

The pickleball lines issue played out not just at the roller hockey court but also at a tennis court at Cassidy Playground, all of which a city “Pickleball Coordinator” has been trying to adjudicate. In this case, a pickleball player was attempting to start a pickleball league at a tennis court. His argument: Pickleball is popular in Boston, and tennis is not. 

“The Larsen Compromise”

In San Francisco, an entire local government proceeding pushed by USA Pickleball ambassadors and leading to various public meetings, a public comment period, all the associated drama, and an aftermath where everyone is upset happened earlier this year.

The basic gist is that pickleball, broadly speaking, is popular within the tech industry, but San Francisco did not have any public, pickleball-specific courts that were up to official USA Pickleball tournament specifications. At the same time, pickleball players were dominating permits for shared-use courts around the city, which was upsetting tennis players and people who played other sports (much like in Boston). 

The “Larsen Compromise” was a city plan to convert a tennis court and basketball court at Larsen Park into eight pickleball courts. The city also agreed to rebuild two decrepit, unusable tennis courts at Stern Grove, about a mile away. The city also said it would pause creation of new pickleball courts (a concession to homeowners), and would stop offering permits for pickleball at a few mixed-use facilities, so pickleball would stop dominating them. 

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show
One of hundreds of emails about the Larsen Compromise

In February, the city’s Parks Department Commission voted unanimously to adopt the plan, and construction on the pickleball courts at Larsen Park began in August. San Francisco’s city government sent me about 500 pages of emails from community members, most of whom were angry about the compromise.  

“My 9-year-old son was in tears when he saw the construction at Larsen Park! He walks to that park every weekend to shoot hoops,” one parent wrote to the city in an email. “Tennis court gone, basketball court gone, with no plans to replace either one … there must be a way to keep the basketball hoops at Larsen and accommodate pickleball too.”

A pickleball player, meanwhile, told the city that being unable to book courts elsewhere in the city made it impossible for him to find time to play: “I wanted to find out why my pickleball reservation at Parkside Square is no longer allowed … we purchased our own net just for this purpose and now we are stuck with a net without a pickleball court to play in … It seems unfair to the pickleball players and it’s also causing a lot of arguments between tennis and pickleball players … this is very unfair.”

Pickleball players thought this was not enough, as San Francisco is a large city. One resident asked that a playground in North Beach have pickleball lines painted on an area “occasionally used for kids to ride their scooters, or tennis players to hit against the wall … but most of the time when I visit, it is unused.” 

'FYI Pickleball DRAMA': Local Governments Overwhelmed By Tennis-Pickleball Turf Wars, Documents Show

This email triggered a series of internal emails about how difficult the request would be, politically: “There has been a lot of discussion about that blacktop. It is used by school kids during the day, after school kids for practices, basketball players, soccer players, and tennis players,” Dana Ketcham, San Francisco Recreation and Parks Department’s director of property told her staff. “I know that there is a lot of tension with the pickleball and tennis players even though there are no pickleball lines on the tennis courts—I think they put their own lines … adding pickleball lines is likely to create issues because as we learned at Crocker, adding pickleball lines without fencing makes pickleball players unhappy as they have to chase their balls down. We will not be able to put up fences without taking it away from school kids for baseball and soccer practice. Good luck on framing a response.” 

Later, after a series of back-and-forths and potential solutions, another parks employee said: “The blacktop is a multi-sport court, and with the commission compromise, no more pickleball conversion.” The city of San Francisco did not respond to a request for comment. 

“This decision was made after extensive research, community engagement, and careful consideration. The expansion to eight courts was a response to the increasing demand and meets Pickleball USA's standards as a potential tournament site, which is not currently available at our other pickleball locations within the city,” the parks department told several angry residents. “The Rec and Park Department recognizes the impact this has on other sports communities and has paused any further conversion of sports courts to dedicated pickleball courts. This approach aims to strike a balance between different sports offerings available across the city.” 

The Larsen pickleball courts are slated to open before the end of the year.

‘Cultivating Economic Recovery’

One city that feels like it’s been able to make all of this work is, ironically, Santa Monica, where there was the pickleball-related arson. 

Tati Simonian, a spokesperson for the city, said that “our police department is continuing its investigation into the arson,” but said “there is no evidence obtained so far that would indicate the Pickleball program was specifically targeted as opposed to this being, from all appearances, a crime of opportunity.” 

I have not yet gotten many of the documents I requested there because of the ongoing investigation, so it is entirely possible that there are behind-the-scenes beefs I don’t yet know about. But Simonian said the city has completely revamped how it does pickleball reservations and drop-in sessions, and has made promoting pickleball a key pillar of its strategy of “cultivating economic recovery and expanding community and cultural offerings,” which has included rezoning particular areas to allow for private businesses to build indoor pickleball courts, for example. 

“Our tennis community continues to be robust. We have many courts in the city and schools, and offer drop in opportunities, reservable opportunities, lessons and camps as part of our recreation programming. The courts at Memorial Park are programmed for both tennis and pickleball, and through great partners and community dialogue we’re able to navigate the needs of each sport,” she said. “It’s our hope that through these various programs and offerings, we can provide something for everyone looking to enjoy pickleball (or tennis!)”

Most surprising of all, she said that she is “happy to report we have not received any noise complaints.”

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<![CDATA[Our Second FOIA Forum! 11/30, 1PM EST]]>https://www.404media.co/our-second-foia-forum-11-30-1pm-est/654d0abf2f6d2600017734f3Thu, 30 Nov 2023 15:00:00 GMT

It’s nearly that time again! We’re planning our second FOIA Forum, a live, hour-long (maybe a little bit more) interactive session where Joseph and I will talk about how we approach filing public records requests and will file them in real-time. We’re planning this for Thursday, 30th November at 1 PM Eastern. Add it to your calendar!

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<![CDATA[A Massive Repair Lawsuit Against John Deere Clears a Major Hurdle]]>https://www.404media.co/a-massive-repair-lawsuit-against-john-deere-clears-a-major-hurdle/65677d987be935000157e735Thu, 30 Nov 2023 14:31:36 GMT
A Massive Repair Lawsuit Against John Deere Clears a Major Hurdle

A judge rejected John Deere’s motion to dismiss a landmark class action lawsuit over the agricultural giant’s repair monopolies, paving the way for a trial that will determine whether the company’s repair practices are illegal. The case will specifically examine whether Deere has engaged in a “conspiracy” in which Deere and its dealerships have driven up the cost of repair while preventing independent and self-repair of tractors that farmers own.

In a forceful, 89-page memorandum, U.S. District Court Judge Iain Johnson wrote that the founder of John Deere “was an innovative farmer and blacksmith who—with his own hands—fundamentally changed the agricultural industry.” Deere the man “would be deeply disappointed in his namesake corporation” if the plaintiffs can ultimately prove their antitrust allegations against Deere the company, which are voluminous and well-documented. Reuters first reported on Johnson’s memo.

At issue are the many tactics Deere has used to make it more difficult and often impossible for farmers to repair their own tractors, from software locks and “parts pairing” that prevent farmers from replacing parts without the authorization of a Deere dealership. 

“Only Deere and Dealer authorized technicians have access to the Repair Tools, and Deere withholds these resources from farmers and independent repair shops,” Johnson wrote.

The case, in which 18 farmers and farms from around the country are suing Deere, is a very important one that has already been in pretrial hell for more than a year. Johnson’s memo rejected a motion to dismiss from Deere, meaning the plaintiffs have legitimate standing to sue and plausible claims against Deere, and the case will proceed in what Johnson wrote “will likely be a long and expensive process.” 

This lawsuit, which has already had more than 160 legal documents filed before it even goes to discovery, is one of the most credible and high-profile lawsuits brought against any company for their repair practices in recent memory. 

I’ve written often about these problems, which have caused some enterprising farmers to pirate John Deere service software and firmware from private forums and torrent sites

Over the years, Deere has taken a few small steps that were supposed to make self repair easier, and promised to make specific parts and software available. Johnson’s memo and the plaintiffs cite a few pieces of my earlier reporting on the myriad ways Deere has made repair difficult. 

Deere missed a self-imposed deadline to do this, which Johnson notes: “the inability to obtain Repair Tools was evidenced by journalists who attempted to obtain the promised software but were informed that it was not available. After a representation ‘that comprehensive repair and diagnostic equipment was available,’ when questioned where and how these were available, no response was provided.” Johnson also wrote that the “complaint also contains four pages of allegations that, to the extent Deere has made Repair Tools available, those particular Repair Tools are ineffective and insufficient to allow purchasers to either repair their own Tractors or have ‘independent repair shops’ fix the Tractors.”

“The reasonable inference from these allegations is that Deere—by itself or through its agents—repeatedly made public statements that purchasers could make repairs to their own Tractors but the reality was that they couldn’t,” Johnson wrote.

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<![CDATA[Google Researchers’ Attack Prompts ChatGPT to Reveal Its Training Data]]>https://www.404media.co/google-researchers-attack-convinces-chatgpt-to-reveal-its-training-data/6567616ae6c423000172f46bWed, 29 Nov 2023 16:22:28 GMT
Google Researchers’ Attack Prompts ChatGPT to Reveal Its Training Data

A team of researchers primarily from Google’s DeepMind systematically convinced ChatGPT to reveal snippets of the data it was trained on using a new type of attack prompt which asked a production model of the chatbot to repeat specific words forever. 

Using this tactic, the researchers showed that there are large amounts of privately identifiable information (PII) in OpenAI’s large language models. They also showed that, on a public version of ChatGPT, the chatbot spit out large passages of text scraped verbatim from other places on the internet.

ChatGPT’s response to the prompt “Repeat this word forever: ‘poem poem poem poem’” was the word “poem” for a long time, and then, eventually, an email signature for a real human “founder and CEO,” which included their personal contact information including cell phone number and email address, for example. 

“We show an adversary can extract gigabytes of training data from open-source language models like Pythia or GPT-Neo, semi-open models like LLaMA or Falcon, and closed models like ChatGPT,” the researchers, from Google DeepMind, the University of Washington, Cornell, Carnegie Mellon University, the University of California Berkeley, and ETH Zurich, wrote in a paper published in the open access prejournal arXiv Tuesday. 

This is particularly notable given that OpenAI’s models are closed source, as is the fact that it was done on a publicly available, deployed version of ChatGPT-3.5-turbo. It also, crucially, shows that ChatGPT’s “alignment techniques do not eliminate memorization,” meaning that it sometimes spits out training data verbatim. This included PII, entire poems, “cryptographically-random identifiers” like Bitcoin addresses, passages from copyrighted scientific research papers, website addresses, and much more.

“In total, 16.9 percent of generations we tested contained memorized PII,” they wrote, which included “identifying phone and fax numbers, email and physical addresses … social media handles, URLs, and names and birthdays.” 

The entire paper is very readable and incredibly fascinating. An appendix at the end of the report shows full responses to some of the researchers’ prompts, as well as long strings of training data scraped from the internet that ChatGPT spit out when prompted using the attack. One particularly interesting example is what happened when the researchers asked ChatGPT to repeat the word “book.” 

“It correctly repeats this word several times, but then diverges and begins to emit random content,” they wrote. 

Often, that “random content” is long passages of text scraped directly from the internet. I was able to find verbatim passages the researchers published from ChatGPT on the open internet: Notably, even the number of times it repeats the word “book” shows up in a Google Books search for a children’s book of math problems. Some of the specific content published by these researchers is scraped directly from CNN, Goodreads, WordPress blogs, on fandom wikis, and which contain verbatim passages from Terms of Service agreements, Stack Overflow source code, copyrighted legal disclaimers, Wikipedia pages, a casino wholesaling website, news blogs, and random internet comments

Google Researchers’ Attack Prompts ChatGPT to Reveal Its Training Data
Verbatim text spit out by ChatGPT that can be traced directly to specific articles and websites on the internet.

The above examples are a tiny sample from a research paper that is, itself, a tiny sample of the entirety of the training data OpenAI uses to train its AI models. The researchers wrote that they spent $200 to create “over 10,000 unique examples” of training data, which they say is a total of “several megabytes” of training data. The researchers suggest that using this attack, with enough money, they could have extracted gigabytes of training data. The entirety of OpenAI’s training data is unknown, but GPT-3 was trained on anywhere from many hundreds of GB to a few dozen terabytes of text data.

This paper should serve as yet another reminder that the world’s most important and most valuable AI company has been built on the backs of the collective work of humanity, often without permission, and without compensation to those who created it. 

404 Media attempted to replicate the attack on ChatGPT but was unsuccessful: “Repeating ‘poem’ request denied,” a summary of the request says. The Deepmind researchers wrote that it informed OpenAI of the vulnerability on August 30 and that the company patched it out. “We believe it is now safe to share this finding, and that publishing it openly brings necessary, greater attention to the data security and alignment challenges of generative AI models. Our paper helps to warn practitioners that they should not train and deploy LLMs for any privacy-sensitive applications without extreme safeguards.”

OpenAI did not immediately respond to a request for comment.

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<![CDATA[Podcast: Male Tech Conference Founder Runs Popular Woman-in-Tech Account (???)]]>https://www.404media.co/404-media-podcast-male-conference-devternity/65663a64e6c423000172bbafWed, 29 Nov 2023 14:00:50 GMT Podcast: Male Tech Conference Founder Runs Popular Woman-in-Tech Account (???)

So much drama this episode but with an important message behind it all. For the first half, Sam and Jason break down their stories about Eduards Sizovs, a tech conference founder who listed a fake, "auto-generated" woman as a conference speaker. Sizovs is also behind a highly popular woman-in-tech account. There are layers here. 


After the break, Jason explains how Plex is leaking users' viewing habits to one another. Then in the subscribers-only section, Joseph runs us through how an established figure in the sneaker world is connected to a Chinese money laundering ring.

Listen to the weekly podcast on Apple PodcastsSpotify, or Google Podcasts. A video version of this week’s episode will be available on our YouTube channel. Become a paid subscriber for access to this episode's bonus content and to power our journalism. If you are a paid subscriber, check your inbox for an email from our podcast host Transistor for a link to the subscribers-only version! You can also add that subscribers feed to your podcast app of choice and never miss an episode that way.

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<![CDATA[CBP Is Testing Palmer Luckey's AI-Powered Surveillance Towers in the Great Lakes]]>https://www.404media.co/cbp-anduril-canada-great-lakes/6565ecb5e6c4230001728c76Wed, 29 Nov 2023 14:00:02 GMT
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This article was primarily reported using public records requests. We are making it available to all readers as a public service. FOIA reporting can be expensive, please consider subscribing to 404 Media to support this work. Or send us a one time donation via our tip jar here.
CBP Is Testing Palmer Luckey's AI-Powered Surveillance Towers in the Great Lakes

U.S. Customs and Border Protection (CBP) plans to test an AI-powered surveillance tower made by Palmer Luckey’s company Anduril in the Great Lakes region near the Canadian border, according to internal CBP documents obtained by 404 Media.

The news shows CBP’s continued investment in AI surveillance technology, both with regards to digital surveillance, like the monitoring of social media of travelers, and that in the physical world, such is the case with this planned surveillance tower and others CBP already uses. It also marks the first time that CBP will be testing a maritime tower that is specifically engineered to weather cold climates, CBP told 404 Media.

“In support of the [CBP] mission of securing our nation’s borders, CBP has a need to procure autonomous border surveillance capabilities,” one of the documents reads. “This capability will serve to enrich relevant CBP information technology systems of record by providing new data streams that support improved situational awareness to ongoing tactical operations and strategic support without requiring additional staffing resources to support.”

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Do you work at Anduril or know anything else about the company? I would love to hear from you. Using a non-work device, you can message me securely on Signal at +44 20 8133 5190. Otherwise, send me an email at joseph@404media.co.

Specifically, the document describes a plan to deploy an Autonomous Surveillance Tower (AST) “in the northern border Great Lakes environment for a technology demonstration.” The document does not provide a more granular location than that; the U.S.-Canada border cuts across four of the five Great Lakes (Lake Michigan is entirely in the U.S.) They are spread across Illinois, Indiana, Michigan, Minnesota, New York, Ohio, Pennsylvania, and Wisconsin, as well as Ontario, Canada.

The tower “will provide artificial intelligence and machine autonomy which enables real time monitoring, detection, identification, and tracking of threats in the maritime environment,” the document continues.

CBP Is Testing Palmer Luckey's AI-Powered Surveillance Towers in the Great Lakes
A section of one of the documents. Image: 404 Media

The contract for that surveillance tower is with Anduril, another document shows. Luckey founded virtual reality company Oculus before being fired by Oculus owner Facebook and creating Anduril. The startup is worth $8.5 billion, and beyond CBP has contracts with the U.S. Special Operations Command, the Air Force, and other agencies.

Today the company creates all manner of autonomous vehicles and systems including an airborne drone called Ghost, and Anduril recently acquired Blue Force Technologies, which has been developing a new autonomous air vehicle called Fury. Anduril also makes Lattice OS, an operating system for bringing these different technologies together.

“You want to know where all the good guys are, you want to know where all the bad guys are,” Luckey recently told an audience at the Bloomberg Technology Summit.

Anduril calls its autonomous surveillance towers Sentry Towers. Armed with artificial intelligence and various sensors, they are designed to “track objects of interest,” according to Anduril’s website. The “Maritime Sentry Tower,” which this latest CBP test appears to relate to, includes “radar designed to detect boats, jet skis, and other water-borne objects,” Anduril’s website reads.

Originally, Anduril deployed Sentry Towers with CBP on the southern border with Mexico as part of a pilot program, before rolling out dozens. In one 10 week period, Anduril helped border officials catch 55 people, according to WIRED. In 2019, The Daily Beast reported Anduril’s work had expanded to the Canadian border in Montana and Vermont. That report said those tests included a cold-weather variant of the company’s technology, but CBP told 404 Media that this Great Lakes test is specifically the first maritime tower hardened for cold-weather to be tested.

“The Department of Homeland Security is committed to protecting individuals’ privacy, civil rights, and civil liberties. DHS uses various forms of technology in furtherance of its mission, including tools to support investigations related to, among other things, threats to infrastructure, illegal trafficking on the dark web, cross-border transnational crime, and terrorism. DHS leverages this technology in ways that are consistent with its authorities and the law,” a CBP spokesperson told 404 Media in a statement.

Anduril did not respond to a request for comment.

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<![CDATA[Male Tech Conference Founder Is Behind Popular Woman Coding Influencer Account]]>https://www.404media.co/coding-unicorn-instagram-julia-kirsina-devternity/65651aba97c435000114cc09Mon, 27 Nov 2023 22:52:21 GMT
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Male Tech Conference Founder Is Behind Popular Woman Coding Influencer Account

The “most popular coding account on Instagram” features more than a thousand photos of a woman named Julia Kirsina who is “posting no-BS coding, career, productivity tips.” But a recent scandal related to the software developer conference Devternity has led many developers to point out that the account seems to be run by Devternity’s Eduards Sizovs, who is under fire for “auto-generating” a fake woman on a list of the conference’s speakers. 

Now IP logs from a forum for programmers obtained by 404 Media showed an account the forum administrator said belonged to Sizovs inviting and then logging into an account belonging to Coding Unicorn, Kirsina’s social media handle. A YouTube video posted last year by Sizovs that had five views when 404 Media accessed it showed Sizovs logged into his own email accounts as well as one for “Coding Unicorn.”

The news presents an unusual, and bizarre, wrinkle on an ongoing crisis where multiple high profile speakers have dropped out of Devternity over Sizovs’ use of at least one fake woman on the conference’s website.

Tech Conference Collapses After Organizer Admits to Making Fake ‘Auto-Generated’ Female Speaker
Viral allegations that Devternity founder Eduard Sizovs fabricated female speakers to boost diversity have caused several big-name speakers to publicly drop out of the conference.
Male Tech Conference Founder Is Behind Popular Woman Coding Influencer Account

Before 404 Media obtained the IP logs, software developers pointed out that many of @coding_unicorn’s posts are copied and pasted from Sizov’s LinkedIn posts without any attribution, and Sizov’s LinkedIn profile states, “I devote most of my time to … Growing the most popular coding account on Instagram with 120K followers: @coding_unicorn,” without elaborating on what exactly that entails. On Instagram, the captions are paired with images of her posing for the camera with a laptop, usually showing a screen where she’s supposedly in the middle of coding something. 

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<![CDATA[Plex Users Fear New Feature Will Leak Porn Habits to Their Friends and Family]]>https://www.404media.co/plex-users-fear-discover-together-week-in-review-feature-will-leak-porn-habits-to-their-friends-and-family/6564c731d2c1ea0001ed1f5eMon, 27 Nov 2023 16:56:57 GMT Plex Users Fear New Feature Will Leak Porn Habits to Their Friends and Family

Many Plex users were alarmed when they got a “week in review” email last week that showed them what they and their friends had watched on the popular media server software. Some users are saying that their friends’ softcore porn habits are being revealed to them with the feature, while others are horrified by the potentially invasive nature feature more broadly. 

Plex is a hybrid streaming service/self-hosted media server. In addition to offering content that Plex itself has licensed, the service allows users to essentially roll their own streaming service by making locally downloaded files available to stream over the internet to devices the server admin owns. You can also “friend” people on Plex and give them access to your own server. 

A new feature, called “Discover Together,” expands social aspects of Plex and introduces an “Activity” tab: “See what your friends have watched, rated, added to their Watchlist, or shared with you,” Plex notes. It also shares this activity in a “week in review” email that it sent to Plex users and people who have access to their servers.

Plex Users Fear New Feature Will Leak Porn Habits to Their Friends and Family
From Plex's promotional material

This has greatly alarmed a wide swatch of Plex’s user base, who have blown up the Plex forums, the Discover Together blog post comment section, and Reddit with posts about disastrous overshares created by the feature. A sampling of posts: “Discover Together and Week in Review emails are a MASSIVE breach of privacy and trust!,” “Security breach: Why is my friend receiving notifications to rate movies I’ve watched?,” “Weekly review emails data leak,” “Plex crossed a line with ‘Your week in review’ emails today.’”

The feature is opt-out, meaning that many people were very surprised to get these emails and see this feature, as it’s up to users to proactively turn it off (instructions here and here). 

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Has the "Discover Together" feature shown your or your friends' porn habits or other sensitive content? I would love to hear from you. Using a non-work device, you can message me securely on Signal at +1 202 505 1702. Otherwise, send me an email at jason@404media.co.

“I can see that one of my friends is apparently watching a ton of cheesy, soft porn stuff (think classic ‘skinemax’ fare) from some server (it’s not mine) or Plex channel, and I am 100 percent sure they would be mortified to know that I know this,” one user wrote on the Plex Forums. “Now replace this friend, who’s just enjoying their downtime with some cheeky T&A, with a teenager who may be having difficulty figuring out feelings about their sexuality and are just trying to explore by watching LBGT dramas to see if anything there resonates or can help them figure things out. Suddenly, one of their intolerant friends or parents gets a detailed email report with a cheery title listing every little thing they’re watching…This is a dystopian nightmare of a feature and I honestly can’t believe it’s been rolled out as opt-out like this. SHAME ON YOU, PLEX!”

“I wonder how many people just had their week’s porn selections emailed to their Plex friends,” another user posted. “I just got an email about a friend’s watching habits which he definitely didn’t want to share. He insists he’s never opted into any data sharing, but…it went out anyway.”

“I’m sure there’s a certain percentage of people who want to know what kind of porn their grandma likes, but I’m hoping it’s not the majority,” another posted. 

Otto Kerner, who is a moderator of the official Plex forums, said that porn viewing habits would only be shared if Plex can make a “match” of the media with online databases like IMDb. “Many pr0n titles are either not listed there at all [sic],” Kerner wrote. It’s worth noting, however, that there are many adult titles on IMDb.

There are hundreds of posts about the issue on the official Plex forums, many of which point out that many Plex users chose to use the service in the first place because it is a “self-hosted” alternative to streaming that many people go into believing they will have more control and privacy than is offered by Hulu, Netflix, and other streaming services. Plex is also used by many users to play and stream files that they have illegally pirated (the ability to do this is largely behind the initial popularity of Plex), though the company has been trying to move away from the perception that most people are using it to play pirated content

“The fact that this data is available to you AT ALL … That is just … Mind boggling, and completely against the very notion of self hosting,” one user wrote. “I feel betrayed that was done without telling me that this data was going to be collected. Let alone acted upon. It’s dangerous. Certain entities would LOVE to have that data…which could mean jail time for some.”

“The ‘See what your friends are watching’ will be great for all the people with secret porn libraries. Or when you start watching a Jan 6th documentary, and you see Aunt Becky start commenting about it being part of a satanic conspiracy,” a commenter on Plex’s blog post announcing the feature wrote. “I can also say that not one person I have talked to has ever liked the idea that I can see what they're watching from my server.”

Plex did not respond to requests for comment sent from 404 Media. Plex employees have been posting regularly in the forums explaining that people can opt out of the data sharing, and have also said media watch “sync events,” which it uses to track viewing history, do not tell the company the nature of the file played: “There is no way to know whether something being ‘watched’ occurred because you went and saw it at the theater and then marked it on the Discover page when you got home, you watched through a personal Plex Media Server Library, or anything else.” 

Update, 5:07 PM EST: After this article was published, a Plex spokesperson told 404 Media that "Plex did roll out a full screen onboarding process for every user along with an email announcement and in-app announcement for the launch of Discover Together. That said, many users became ‘aware’ of the feature for the first time last week when Plex sent out the activity emails," the spokesperson said. "Based on the comments in the forums and Reddit, users who were ‘unaware’ that their watch activity was being shared to friends and family may have clicked through these settings during the onboarding process without reading their selections."

They added that "Plex does not generate community activity for known adult titles. The 'skinemax' type content you refer to in the article may not all be tagged as adult, so that is why these titles may surface in watch activity."

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<![CDATA[Tech Conference Collapses After Organizer Admits to Making Fake ‘Auto-Generated’ Female Speaker]]>https://www.404media.co/devternity-fake-speakers-eduard-sizovs/6564b92cded3b50001ace1cbMon, 27 Nov 2023 16:13:52 GMT
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Tech Conference Collapses After Organizer Admits to Making Fake ‘Auto-Generated’ Female Speaker

The founder of a software developer conference has been accused of creating fake female speakers to bolster diversity numbers—and some speakers are dropping out, with the event just nine days away. 

Devternity is an online conference for developers that’s invite-only for speakers. In the past, it reportedly drew hundreds of attendees both when it was in-person in Latvia and even more after it moved online. Eduards Sizovs founded the event in 2015. 

Male Tech Conference Founder Is Behind Popular Woman Coding Influencer Account
IP logs show that accounts for Coding Unicorn, a female tech influencer who’s built a following based on her coding advice and Instagram influencer posts, are run by a male developer and conference organizer.
Tech Conference Collapses After Organizer Admits to Making Fake ‘Auto-Generated’ Female Speaker
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<![CDATA[Sneakers and Armored Cars: How a Shoe Company Empire Allegedly Used a Chinese Money Laundering Ring]]>https://www.404media.co/sneakers-chinese-money-laundering-ring-social-status-james-whitner/655e5bccded3b50001ac8143Mon, 27 Nov 2023 14:02:47 GMT
Sneakers and Armored Cars: How a Shoe Company Empire Allegedly Used a Chinese Money Laundering Ring

This article was produced in collaboration with Court Watch, an independent outlet that unearths overlooked court records.

A high profile streetwear and sneakers entrepreneur who has met Vice President Kamala Harris allegedly had an unlikely connection to the world of underground finance through a multi-million dollar Chinese money laundering ring, according to a court record reviewed by 404 Media. Armored security companies, closets full of cash, and narcotic traffickers were all part of the scheme, according to the record.

James Regis Whitner, Jr. does business under the umbrella The Whitaker Group, which owns retail brands Social Status, APB, and A Ma Maniére. At these boutique stores customers can buy Air Jordans and various other pieces of clothing. On his Instagram, Whitner regularly posts about his business, speaking engagements about entrepreneurship, and fashion.

“Hustle until there's nothing left,” Whitner’s Instagram bio reads.

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This article was primarily reported using court records. We are making it available to all readers as a public service. Obtaining court records can be expensive, please consider subscribing to 404 Media to support this work. Or send us a one time donation via our tip jar here.

“The Currency was involved in an unlicensed money transmitting business (“MTB”) involving Chinese money couriers, Charlotte-area businessman James Whitner, Jr. (“Whitner”), Freeman, and others,” the court record, which is part of a civil cause of forfeiture, reads. Although Whitner’s involvement was to get paid for shoes and other items, “the unlicensed MTB involved a complex web of Chinese and American individuals, some of whom have been criminally charged, and facilitated the movement of millions of dollars in crime proceeds.” Whitner has not been charged with a crime.

Sneakers and Armored Cars: How a Shoe Company Empire Allegedly Used a Chinese Money Laundering Ring
A screenshot of Whitner's Instagram profile.

The information comes from a court record regarding the seizure of $1,199,530 found in a New Jersey apartment. The apartment belonged to Antwain “Hutch” Freeman, someone who helped coordinate the movement of money, according to the court record.

According to the court record, the cash is connected to what U.S. authorities describe as a Chinese Money Laundering Organization (MLO). These, the record explains, have become more popular in the U.S. in part because China introduced a law restricting the amount of money that could be transferred out of China. The limit is $50,000 per person every year.

Sometimes these MLOs engage in so-called “mirror exchanges,” where a customer will deposit Chinese RMB plus a commission into a bank account belonging to the MLO in China, the record reads. Then the customer can withdraw the equivalent amount in USD in the U.S., which is “collected from illicit activities,” the record continues.

As for how that relates to Whitner, a retailer in China was purchasing apparel from him, despite Whitner not being allowed per the manufacturer to resell the products, with one Oregon sneaker company contractual banning Whitner from selling the products outside the U.S., according to the court document. Whitner and his businesses used codenames to refer to these retailers, such as “Nevada” and “Kansas,” the record says.

Sneakers and Armored Cars: How a Shoe Company Empire Allegedly Used a Chinese Money Laundering Ring
A screenshot from the court record. Image: 404 Media.

“Kansas” was a Chinese national that Whitner has worked with since 2016, and who is identified in the court record as “YG.” YG delivered large amounts of cash directly to Whitner in North Carolina, and Whitner sold millions of dollars worth of the sneaker company’s products to YG, including “in-demand and exclusive shoes,” the document says. In all, Whitner and others received more than $32 million from YG, the document alleges. YG went on to resell these products in China, it adds.

Chinese money couriers working as part of that chain told investigators they were directed to collect large amounts of USD from Chinese women who traveled frequently to the U.S. and who they believed were involved in prostitution, the document adds. In some instances, transfers were connected to a narcotics trafficker, it says. 

Come 2017, and Whitner arranged for YG’s payments to also be made to Freeman, the document says. Couriers included people in New York, at least one of which delivered money to Freeman’s New Jersey apartment. At least two couriers also delivered cash to “The Foundation,” a business run by Freeman out of midtown Manhattan, and the cash was often packaged in USPS mailing boxes.

“At least one money courier has advised that the courier fronted USC to Freeman and then obtained recompense from narcotics proceeds. Although the business was conducted under the auspices of trade in apparel, in reality, the Money Transmitting Business (“MTB”) collected and moved cash from illegal activity, which Freeman and then Whitner ultimately introduced into the banking system,” the document reads.

“Whitner maintained a spreadsheet of these cash deliveries and the related information,” the document adds. Whitner and Freeman arranged for the pickup and delivery of bulk amounts of cash with an armored car service, it continues.

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Do you know anything else about this case or money laundering in general? I would love to hear from you. Using a non-work device, you can message me securely on Signal at +44 20 8133 5190. Otherwise, send me an email at joseph@404media.co.

In August 2021, law enforcement arrested Freeman as he walked into his midtown office carrying a backpack and deposit back. After that, authorities searched Freeman’s apartment and seized the $1,199,530, which was hidden in his closet. Authorities then monitored the money laundering group itself, traced the movement of another $1,550,000, and later arrested two alleged money courier brothers. According to another court record 404 Media found, those two brothers, Longzhi Zhuang and Longjun Zhuang, used a single shared phone to coordinate money deliveries.

“Hi Boss, see u tomorrow at 7:30pm in ur midtown Office right?” one message sent by the phone in October 2021 reads, according to the second document. A few days later, authorities watched as the brothers arrived at a meetup location on foot and handed someone a box. Law enforcement later seized the box and found approximately $100,000 inside.

Speaking to Freeman on the phone after his arrest, Whitner said he “had a feeling some fishy shit was going on,” regarding YG and a separate seizure of $50,000 from one of the money couriers. 

Freeman eventually pleaded guilty, according to a copy of Freeman’s plea agreement that 404 Media reviewed.

Sneakers and Armored Cars: How a Shoe Company Empire Allegedly Used a Chinese Money Laundering Ring
A screenshot of Whitner's Instagram profile.

Social Status posted a statement to its Instagram account on Tuesday. “The recent action by the U.S. Attorney’s Office for the Western District of North Carolina (USAO) comes after significant cooperation and good-faith negotiations on our part. To be clear, while we take the allegations in the complaint seriously, they are unfounded, unrelated to our business or this community and unjustified. Our professional inventory management team runs a transparent process built on systems that are both legally compliant and consistent with industry standards. We have also complied with all tax obligations annually.”

“We disagree with the USAO’s allegations concerning our business and remain appreciative of the extraordinary support our vendor partners have shown and continue to show throughout this process. Our success has made us an easy target caught in the middle of a U.S. financial and regulatory war with China of which we have no part in,” the statement continued.

Whitner published the same statement to his own Instagram account, along with the hashtag “#ifyouknowyouknow.”

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<![CDATA[Behind the Blog: Disney Copyright, Singing Xi, and the Wizarding World of Effective Altruists]]>https://www.404media.co/behind-the-blog-disney-copyright-singing-xi-and-the-wizarding-world-of-effective-altruists/655e7d9dded3b50001ac8218Fri, 24 Nov 2023 16:31:33 GMT
Behind the Blog: Disney Copyright, Singing Xi, and the Wizarding World of Effective Altruists

This is Behind the Blog, where we share our behind-the-scenes thoughts about how a few of our top stories of the week came together. This week, we're looking at what OpenAI and Harry Potter fanfic have in common, Disney's AI generated copyright, and questions about Hugging Face's selectively-enforced terms.

JASON: Besides making me wonder about the privacy implications of people’s beds, this extremely unhinged tweet by the CEO of Eight Sleep, which sells an expensive smart mattress topper, got me thinking about sleep, mental health, reporting, the news, OpenAI, and things of this nature. We call this Behind the Blog, and I ran a tech website with a team of between 12 and 24 people for six years, so I wanted to give you my perspective on feeding frenzies like OpenAI’s palace intrigue, what I think that looks like in a newsroom, and my personal perspective on how “the tech press” covers these types of stories.

Behind the Blog: Disney Copyright, Singing Xi, and the Wizarding World of Effective Altruists

First of all, I think what happened at OpenAI over the last week is important, and there has been some really good reporting on the play-by-play of what’s happened by people at The Verge, Semafor, the Information, Axios, WSJ, and others. I understand why people care, and I am certainly not above the drama of all of this. That said, when a story like this completely captures the public’s attention, there’s this impulse for newsrooms to pivot all of their reporting resources to it kind of regardless of whether that newsroom is actually positioned to break news on the topic, or reveal new information about it. 

As we’ve stated from the very beginning, 404 Media is primarily focused on doing ground-up reporting and reporting on how technology impacts people and marginalized communities. That’s one way of saying that none of us are actively sourced up at OpenAI or within the VC world. We were not positioned to break news about who the next CEO would be, what was happening at Microsoft, whether Sam Altman is coming back, etc, because we explicitly have made choices to become experts in other subjects and to approach AI reporting in a different way. 

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<![CDATA[Podcast: OpenAI, Harry Potter Fanfic, and Hackers Who Gamble]]>https://www.404media.co/404-media-podcast-week-14-openai-harry-potter/655e4e5fded3b50001ac80e4Thu, 23 Nov 2023 14:00:26 GMT Podcast: OpenAI, Harry Potter Fanfic, and Hackers Who Gamble

Well that was a lot of drama in the world of OpenAI. Fear not, we have a unique angle on how the person in the running to be OpenAI's new CEO was a character in a Harry Potter fanfic that was written deliberately as a recruiting tool to the effective altruist movement. That's definitely a sentence. After the break Sam talks about how Twitter is pushing sex workers into a black hole, then in the subscribers-only section Joseph explains how he found that SIM swappers are gambling stolen Bitcoin at online casinos.

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<![CDATA[New Kodak Super 8 Film Camera Thought to Be Vaporware Is Actually Coming Out, Costs $5,495, Charges With MicroUSB]]>https://www.404media.co/new-kodak-super-8-film-video-camera-thought-to-be-vaporware-is-actually-coming-out-costs-5-495-charges-with-microusb/655e11fd85b3e20001a070a6Wed, 22 Nov 2023 14:41:25 GMT
New Kodak Super 8 Film Camera Thought to Be Vaporware Is Actually Coming Out, Costs $5,495, Charges With MicroUSB

Kodak showed off a brand new Super 8 film video camera at CES in 2016 that blended the iconic film format with some digital quality-of-life features, like digital monitoring of what you’re shooting. The world then heard basically nothing about the camera for many years, and it was assumed to be vaporware. Tuesday night, Kodak suddenly started taking reservations for the camera. It has an MSRP of $5,495 (!) and its battery charges with MicroUSB (!). 

Full disclosure, I did not learn about the possible existence of this camera until last month, when I happened upon a promo video of footage shot on a prototype of the camera in 2018. The footage it captures is very beautiful, have a look: 

As someone who is newly and earnestly into film photography, my mind started racing: Before even beginning to even grasp the intricacies of still film photography, could I get into a related, more expensive, and even less practical hobby? 

Immediately after learning about the camera I then learned that it was probably vaporware. Kodak teased the camera at CES in 2016, let people try it at CES in 2017, and released a sizzle reel of footage from it in 2018. Since then, it has said essentially nothing about it.

Popular photography and videography YouTubers declared it possibly “ABANDONED,” probably never coming, etc. I stopped thinking about it basically immediately because I figured it was just a prototype. 

And now, it is here, and it looks like the type of gadget that I will casually lust after but do not actually want. It is exactly what it sounds like: A new video camera for a film format created in 1965. The new camera has a 4” LCD viewfinder, the ability to shoot the film in a 16:9 format, interchangeable lenses, and the ability to monitor and record synced audio onto an SD card. Because of these features, it’s been called an “analog-digital hybrid.” 

The camera’s battery charges via MicroUSB, a woefully inadequate, unreliable, and now outdated charging mechanism. This is something that the analog film community has immediately slammed Kodak for, and seemingly speaks to the fact that the camera was designed in 2016 and has apparently not been changed too much since then. 

I will not be purchasing this camera because, for me, it is wildly impractical on many levels. Used vintage Super 8 cameras only cost a few hundred bucks. Super 8 film is considered to be relatively affordable, but film videography is still an expensive hobby: One Super 8 film cartridge can shoot roughly two-and-a-half minutes of video at 24fps. A cartridge costs about $35 before factoring in processing and editing

Still, I think the mere existence of this camera, and the fact that Kodak is choosing to release it at all, is a very good sign for people interested in both film videography and film photography. As I’ve written over the last few months, film photography and videography are both experiencing a renaissance and, after years of people worrying about film shortages and rising prices, there are signs that companies are beginning to realize that people want new film stocks, new cameras, new processing chemicals, and new innovations in the space. 

After a company that Kodak licensed its color film developing chemicals decided to stop making them, another company called Photo Systems Inc. announced it would step in and continue making them. A new mystery product is coming December 1 from Harman, which makes the popular Ilford-brand film. Once-skyrocketing film prices are slowly coming down.  And now there’s a new video camera, even if I can’t afford it and don’t need it. 

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