Category: Business

  • MIL-OSI Canada: Opening statement to the Standing Committee on Industry and Technology: Credit card practices and regulations

    Source: Government of Canada News

    Remarks by Krista McWhinnie, Deputy Commissioner, Monopolistic Practices Directorate: Opening statement to the Standing Committee on Industry and Technology: Credit card practices and regulations

    Remarks by Krista McWhinnie, Deputy Commissioner, Monopolistic Practices Directorate

    The House of Commons’ Standing Committee on Industry and Technology

    October 10, 2024

    Ottawa, Ontario

    (As prepared for delivery)

    Good morning Mr. Chair and members of the committee. Thank you for the invitation to appear before you today. My name is Krista McWhinnie and I’m the Deputy Commissioner of the Monopolistic Practices Directorate at the Competition Bureau. I am joined today by my colleague, Brad Callaghan, who is the Associate Deputy Commissioner of the Bureau’s Competition Promotion Branch.  

    The Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. We administer and enforce Canada’s Competition Act, a law of general application that applies to every sector of the economy.  We investigate and address abuses of market power, anti-competitive mergers, price-fixing and deceptive marketing practices. The Bureau also advocates for pro-competitive government rules and regulations.  

    It’s important to recognize that we are enforcers of our legislation and advocates for more competitive markets. We are not adjudicators or regulators that set rules for companies. The Competition Act requires us to meet several thresholds and standards when we bring cases before the courts, such as proving that there has been a significant harm to competition.  

    In the context of your study, the issues most relevant to the Bureau’s mandate relate to investigating and policing against monopolistic practices and guarding against deceptive practices.   

    The Competition Bureau has experience analyzing issues related to the Canadian payments sector. For example, in December of 2010, the Bureau filed an application with the Competition Tribunal under the price maintenance provision of the Competition Act alleging that Visa and MasterCard were imposing restrictive rules on merchants who accept their cards.  

    In the Bureau’s view, these rules reduced competition among credit card network services, including competition with respect to credit card acceptance fees. Ultimately, the Competition Tribunal dismissed the application in 2013, finding that it did not meet certain requirements under the price maintenance provision of the Act . That said, the Tribunal also carried out an alternative analysis in the event it was wrong in its legal interpretation. Under this analysis, the Tribunal found that these rules had raised prices and had an adverse effect on competition.  

    While the application was dismissed, the Tribunal noted the importance of this issue for Canadians. Notably, the Tribunal said that even if the Bureau had proved its case, the Tribunal would not have given an order to remedy the concerns raised by the Commissioner’s application.  Instead, it suggested the issues would be better addressed through regulation.   

    Following that case, Visa and MasterCard submitted separate and voluntary proposals to the Minister of Finance in 2014 to reduce their credit card acceptance fees for a period of five years. To date, the Government has not regulated these fees.

    The Bureau does not play an active role in commitments from companies to lower fees. We also have no mandate to develop or implement industry codes of conduct. Our role is limited to enforcing the Competition Act should its provisions be engaged, and advocating that any government action be carried out in ways that encourage the most competition.  

    Before responding to your questions, I will note that the law requires the Bureau to conduct its investigations in private and keep confidential the information we have. This obligation may prevent us from discussing certain details of our investigations. 

    I would like to again thank the Committee for the opportunity to appear today. We look forward to your questions. 

    MIL OSI Canada News

  • MIL-OSI Canada: Government of Canada to invest in an accessible infrastructure project

    Source: Government of Canada News

    The Minister of Diversity, Inclusion and Persons with Disabilities, the Honourable Kamal Khera, will highlight funding under the Enabling Accessibility Fund mid-sized projects component for an accessible infrastructure project that will support persons with disabilities in the Mississauga region.

    The Minister of Diversity, Inclusion and Persons with Disabilities, the Honourable Kamal Khera, will will be in Mississauga to highlight funding under the Enabling Accessibility Fund mid-sized projects component for an accessible infrastructure project that will support persons with disabilities in the Mississauga region.

    Minister Khera will be accompanied by the Minister of Small Business, the Honourable Rechie Valdez, Member of Parliament for Mississauga–Lakeshore, Charles Sousa, and Member of Parliament for Mississauga East–Cooksville, Peter Fornesca.

    A photo opportunity and media availability will follow the announcement.

    Please note that all details are subject to change. All times are local.

    Date:       Friday, October 11, 2024
    Time:     
    11:00 a.m. EDT
    Place:     
    Mississauga, Ontario

    To register, contact media@hrsdc-rhdcc.gc.ca with your name and media outlet before 10:00 a.m. EDT on Friday, October 11, 2024. Further information will be provided upon registration.

    – 30 –

    Waleed Saleem
    Press Secretary
    Office of the Minister of Diversity, Inclusion and Persons with Disabilities
    waleed.saleem@hrsdc-rhdcc.gc.ca

    MIL OSI Canada News

  • MIL-OSI Canada: Message from the Minister of Mental Health and Addictions and Associate Minister of Health – World Mental Health Day

    Source: Government of Canada News

    Statement

    October 10, 2024 | Ottawa, ON | Health Canada

    Today is World Mental Health Day and this year’s theme is, “It is Time to Prioritize Mental Health in the Workplace.” Prioritizing workplace mental health is good for people, companies, and communities, and we are committed to improving the health and mental well-being of all Canadians regardless of where they live, work or play.

    As employers and employees, we bring our whole selves to work, including stress from major events and day-to-day life. Likewise, stress from work can impact our mental health in our lives outside of work. It’s okay not to be okay – help is available if you need it.

    To ensure that help is available where and when people need it, the Government of Canada is taking a compassionate approach to provide a range of support services and resources that can help address mental health challenges. Through the Working Together to Improve Health Care for Canadians Plan, close to $200 billion over 10 years is being invested to improve health services across the country.

    Young people in particular have been struggling with mental health and well-being. Changing responsibilities such as entering or engaging in the workforce, balancing work, school and personal commitments may be a new experience for some young adults and can impact their mental health. Mental health care is an essential part of ensuring every young person in Canada can reach their full potential. Canada’s new Youth Mental Health Fund will help community health organizations provide more care for younger Canadians.

    As we approach the one-year anniversary of the 9-8-8 Suicide Crisis Helpline on November 30, 2024, we can already see what a difference this resource is making in the lives of people in Canada. With more than 250,000 calls and texts received since its launch last November, 9-8-8 is providing a safe space to talk.

    9-8-8 is available right across the country and offers trauma-informed and culturally appropriate suicide prevention crisis support in both official languages 24 hours a day, 7 days a week. If you or someone you care about is thinking of suicide, please call or text 9-8-8.

    Mental health is health, and every single person should have access to the mental health support they need, when and where they need it. Please take advantage of your employee assistance program, if you have one available to you, or consult Canada.ca/mental-health for a list of free mental health resources.

    As you go through your daily routines and face the challenges that life presents, take time to check in on your work colleagues and loved ones, or to reach out for support. There is always someone waiting to lend a compassionate and empathetic ear.

    The Honourable Ya’ara Saks, P.C., M.P.

    MIL OSI Canada News

  • MIL-OSI Canada: Company fined for workplace injury

    Source: Government of Canada regional news

    O’Reilly Oilfield Services Ltd. pleaded guilty to one count under the Occupational Health and Safety (OHS) Act for failing to take necessary precautions to protect the health and safety of workers under its supervision. The company was sentenced on Oct. 7 in the Grande Prairie Court of Justice. The Crown withdrew five other charges under OHS legislation against the company. The Crown withdrew 15 charges under OHS legislation against Canadian Natural Resources Ltd. related to the same incident.

    The charges stem from an incident on an oil and gas site near Valleyview on July 7, 2021. One worker was severely burned when liquid from a decommissioned pipeline ignited and overflowed from a portable flare stack.

    O’Reilly Oilfield Services Ltd. was fined $90,000 inclusive of the 20 per cent victim fine surcharge.

    Both the company and the Crown have up to 30 days to appeal the conviction or penalties.

    Alberta’s OHS laws set basic health and safety rules for workplaces across the province. They provide guidance for employers to help them ensure their workplaces are as healthy and safe as possible while providing rights and protections for workers. Charges under OHS laws may be laid when failing to follow the rules results in a workplace fatality or serious injury.

    Quick facts

    • Jobs, Economy and Trade does not provide sentence documents. These are available through the Grande Prairie Court of Justice.

    Related information

    • Convictions under OHS legislation
    • Charges under OHS legislation
    • OHS incident investigations

    MIL OSI Canada News

  • MIL-OSI Security: Deputy Attorney General Lisa Monaco Delivers Remarks Announcing TD Bank’s Guilty Plea for Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Attorneys General

    Remarks as Prepared for Delivery

    Thank you, Mr. Attorney General.

    Today, one of North America’s largest banks pleaded guilty to some of the most serious charges a financial institution can face.

    This case should serve as a warning and a reminder that we will hold corporate wrongdoers accountable, no matter their size or stature.

    But this case also highlights the critical importance of maintaining a culture of compliance — and offers a cautionary tale of how bad things can go without one.

    When you put your hard-earned money in a bank – that bank should meet a very basic requirement.

    It should follow the law.

    For financial institutions, that means — among other obligations — adhering to the Bank Secrecy Act (BSA).

    This law is fundamental — not only for protecting our financial system — but also our national security.

    The BSA requires that banks:

    • Maintain robust anti-money laundering programs;
    • Report suspicious activity; and
    • Train employees to be the first line of defense against money laundering.

    Despite being one of the largest banks in the country, TD Bank failed to meet these requirements and violated the law.

    Even as profits rose, the bank starved its compliance program of the resources it needed to obey the law.

    Time and time again, TD Bank failed to meet its obligations — day after day, year after year.  

    The problems were so widespread — so pervasive — that it was only a matter of time before the bank’s own employees could exploit these failures and engage in money laundering themselves.

    And that’s exactly what happened.

    As TD Bank admitted in its plea today, its anti-money laundering failures spanned nearly a decade.

    Things got so bad that five of the bank’s own employees participated in a scheme that laundered millions of dollars to Colombia, resulting in felony convictions for individuals both inside and outside the bank.

    What makes this even more troubling is that — for years — TD Bank knew of its compliance failures.

    In 2013, federal regulators began penalizing the bank for its lack of money laundering controls.

    But as the light continued blinking red, TD Bank could only see green.

    Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do.

    And every bank CEO and board member should be doing the same.

    Because if the business case for compliance wasn’t clear before — it should be now.

    The Bank Secrecy Act includes a unique penalty provision: the ability to fine a financial institution up to $500,000 for each day it lacks a functional anti-money laundering program.

    The daily fine provision is rarely used.

    In fact, the Justice Department has never before sought this maximum daily penalty against any financial institution.

    Until now.

    The financial penalty under today’s resolution is based on TD Bank’s failure to maintain an effective anti-money laundering program every single day from the beginning of 2014 to the end of October 2023.

    Today’s guilty plea — and the resulting $1.8 billion penalty — represents the largest penalty ever imposed under the Bank Secrecy Act.

    And it provides an unmistakable lesson: crime doesn’t pay. And neither does flouting compliance. 

    This resolution also sets a new course for TD Bank.

    With today’s guilty plea, TD Bank has agreed to tough new rules.

    • It must overhaul its compliance program;
    • It must retain an independent monitor;
    • It must report misconduct to the government; and
    • It must cooperate in our ongoing criminal investigations into the individuals responsible – up and down the corporate ladder.

    The bank has begun this work, and we will continue to hold its feet to the fire.

    We are putting down a clear marker on what we expect from financial institutions — and the consequences for failure.

    When it comes to compliance, there are really only two options: invest now – or face severe consequences later.

    As I’ve said before, a corporate strategy that pursues profits at the expense of compliance isn’t a path to riches; it’s a path to federal prosecution.

    I want to thank the women and men of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the District of New Jersey, and investigative partners joining us today for their continued work on this matter.

    With that, I’ll pass it to Deputy Secretary of Treasury, Wally Adeyemo.

    MIL Security OSI

  • MIL-OSI Security: Attorney General Merrick B. Garland Delivers Remarks Announcing TD Bank’s Guilty Plea for Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Attorneys General 2

    Remarks as Delivered

    Good afternoon everyone. Before we get started today, I want to extend my sympathy to the millions of Americans who’ve had their lives turned upside down by Hurricane Milton and Hurricane Helene.

    I know I speak for all of us in expressing my gratitude to the first responders on the ground who are carrying out rescue missions. And I want to thank all of the volunteers who are helping their neighbors get through these storms.

    And now to the subject of today’s announcement.

    Today, TD Bank pled guilty to multiple felonies, including conspiring to violate the Bank Secrecy Act and commit money laundering. TD Bank has also agreed to a $1.8 billion criminal penalty. Combined with civil enforcement actions announced today by other agencies, the United States will be imposing a total [penalty] of approximately $3 billion against TD Bank.

    TD Bank created an environment that allowed financial crime to flourish. By making its services convenient for criminals, it became one.

    Today, TD Bank became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures and the first U.S. bank in history to plead guilty to conspiracy to commit money laundering.

    This is also the largest-ever penalty under the Bank Secrecy Act and the first time the Justice Department has assessed a daily fine against a bank.

    As part of the plea agreement, TD Bank will fundamentally restructure its corporate compliance program at its U.S.-based bank, which is the 10th largest in the United States.

    The bank has also agreed to the imposition of a three-year monitorship and a five-year term of probation. While the bank has started its remediation, it will continue to remediate and improve its anti-money laundering compliance program to ensure that the bank operates lawfully and safely moving forward.

    In addition to obtaining today’s corporate felony pleas, the Justice Department has also prosecuted two dozen individuals for their involvement in money laundering schemes that moved over $670 million in illicit funds through TD Bank accounts. So far, the Justice Department has charged two TD Bank employees for their involvement in one of these schemes.

    Pursuant to the plea agreement, TD Bank is required to fully cooperate with the Justice Department’s investigation of the bank and any of its officers, directors, and employees. If the bank fails to do so, it will again be subject to criminal prosecution, in which the statement of facts that are part of the plea agreement may be used as evidence against it.

    Our criminal investigations into individual employees at every level of TD Bank are active and ongoing.

    As is the case in all corporate criminal matters, no one involved in TD Bank’s illegal conduct will be off limits. We will follow the evidence wherever it leads.

    Federal anti-money laundering laws are designed to prevent criminals from using U.S. banks to fuel their crimes.

    Our laws dictate that the narcotics traffickers who flood our communities with deadly drugs cannot use American financial institutions to move their money.

    And our anti-money laundering laws dictate that a bank that willfully fails to protect against criminal schemes is also a criminal.

    That is what TD Bank was, because it failed to maintain an adequate anti-money laundering program between January 2014 and October 2023.

    Over a six-year period, TD Bank failed to monitor $18.3 trillion in customer activity.

    As TD Bank admitted in its plea agreement, this allowed three money laundering networks to transfer over $670 million through TD Bank accounts. At least one of those schemes involved five TD Bank employees.

    The bank maintained an automated transaction monitoring system that was supposed to detect and generate alerts on suspicious transactions and activities. But that system was willfully deficient.

    As the bank admitted in the statement of facts, which it filed today, at various times high-level executives, including the person who became the bank’s chief anti-money laundering officer, knew there were serious problems with the bank’s anti-money laundering program. But the bank failed to correct them.

    Three money laundering networks took advantage of TD Bank’s failed anti-money laundering system.

    First, over the course of a three-year period, a person who TD Bank employees knew as David moved over $470 million in illicit funds through TD Bank branches in the United States.

    David has separately pled guilty to laundering drug proceeds through the bank.

    David had attempted to launder money through numerous financial institutions. But he found that TD Bank had the most permissive policies and procedures and chose to launder most of his funds there.

    He also bribed TD Bank employees with more than $57,000 in gift cards in furtherance of his scheme.

    David’s illegal conduct was obvious, to say the least. On more than one occasion, he deposited more than $1 million in cash in a single day. He then immediately moved the funds out of the bank using official bank checks and wire transfers.

    TD Bank employees at many levels understood and acknowledged the likely illegality of David’s activity.

    In August 2020, one TD Bank store manager emailed another store manager and remarked, “You guys really need to shut this down LOL.”

    In late 2020, another store manager implored his supervisors — several TD Bank regional managers — to act, noting that “[i]t is getting out of hand and my tellers are at the point that they don’t feel comfortable handling these transactions.”

    In February 2021, one TD Bank store employee saw that David’s network had purchased more than $1 million in official bank checks with cash in a single day. The employee asked: “How is that not money laundering.” A back-office employee responded, “oh it 100% is.”

    In a second, separate money laundering scheme, five TD Bank employees conspired with criminal organizations to open and maintain accounts at the bank that were used to launder $39 million to Colombia, including drug proceeds.

    That money laundering organization reused the same Venezuelan passports to open multiple accounts at TD Bank. It sometimes used the same passport to obtain multiple debit cards for a single account.

    Despite significant internal red flags, the bank did not identify that its own employees were conspiring to launder tens of millions of dollars to Colombia, until law enforcement arrested one of them.

    In yet a third scheme, outlined in today’s charges, a money laundering network maintained accounts at TD Bank for at least five shell companies. It used those accounts to move over $100 million in illicit funds through the bank.

    Even though retail employees flagged suspicious activity connected to those accounts, the bank did not file a suspicious activity report until law enforcement alerted the bank to the money laundering network’s activity. By that time, the accounts had been open for over 13 months and had been used to transfer nearly $120 million.

    On multiple occasions, bank employees openly joked about the bank’s enabling of criminal activity.

    In one instance a compliance employee asked a manager what “the bad guys” thought about the bank. The manager replied: “Lol. Easy target.”

    Other employees consistently joked on the bank’s instant messaging platform about the bank’s motto, “America’s Most Convenient Bank.” They linked it to the bank’s approach to combating money laundering.

    For example, a compliance employee asked a colleague why “all the really awful ones bank here lol.”

    The colleague replied: “because … we are convenient.”

    There is nothing wrong with a bank that tries to make its services convenient for its honest customers.

    But there is something terribly wrong with a bank that knowingly makes its services convenient for criminals.

    The Bank Secrecy Act requires financial institutions like TD Bank to establish and maintain compliance programs that guard against money laundering.

    But TD Bank chose profits over compliance, in order to keep its costs down.

    That decision is now costing the bank billions of dollars in criminal and civil penalties.

    Less than a year ago, the Justice Department secured felony guilty pleas from Binance, the world’s largest cryptocurrency exchange, and from its founder and CEO. We also obtained one of the largest corporate penalties in U.S. history.

    The Department’s actions against both Binance and TD Bank are a reminder that financial institutions in this country have an obligation to guard against criminals exploiting their services.

    The Justice Department will aggressively prosecute any company that fails to do so.

    I want to express my gratitude to the public servants of the Justice Department’s Criminal Division, the U.S. Attorney’s Office for the District of New Jersey, and the DEA for their extraordinary work on this case. We are also grateful to IRS Criminal Investigation, the FDIC’s Office of Inspector General, FinCEN, and our other federal, state, and local partners for their work.

    I am proud of them.

    I will now turn the podium over to Deputy Attorney General Monaco.

    MIL Security OSI

  • MIL-OSI Security: Principal Deputy Assistant Attorney General Nicole M. Argentieri Delivers Remarks Announcing TD Bank’s Guilty Plea for Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Attorneys General

    Remarks as Prepared for Delivery

    Thank you, Deputy Secretary Adeyemo. I’m Nicole Argentieri, head of the Criminal Division.

    Today, we are announcing the guilty plea of TD Bank, the 10th largest retail bank in the United States, for Bank Secrecy Act violations and money laundering. Over the course of a decade, TD Bank placed profits over compliance, prioritizing a “flat cost paradigm” that limited spending across the bank — including on the bank’s anti-money laundering (AML) compliance program, despite growing risks — even while profits soared.

    The bank knew it had pervasive and systemic deficiencies in its AML program, including a transaction monitoring system that remained stagnant over the course of 10 years despite warnings from regulators, consultants, and even its own employees.

    AML employees joked that the Bank’s failed AML system made TD an “easy target” and a “convenient” bank for bad actors. And they were right. TD’s failed AML compliance program created vulnerabilities that criminals — including TD’s own employees — used to launder money through the Bank.

    All told, three large money laundering networks, two prosecuted by our partners in the District of New Jersey and the third prosecuted in the District of Puerto Rico, laundered over $670 million through TD.

    And in one of these schemes, five bank insiders helped. These TD Bank employees opened and maintained accounts for money laundering networks and provided dozens of ATM cards that the launderers used to withdraw funds in Colombia, shortly after the money was deposited in the United States. The insiders took kickbacks for their work, sometimes using the very debit cards they issued to the money laundering organization to take their cut. Through the TD accounts these five insiders opened, the laundering networks moved over $39 million in illicit funds.

    That’s why today, TD Bank is pleading guilty not only to violating the Bank Secrecy Act. It’s also pleading guilty to money laundering. Because TD Bank’s inadequate AML program allowed bank insiders to facilitate a significant money laundering scheme. This resolution, in addition to the historic daily BSA fine we have imposed, sends a clear message to U.S. banks — you are the first line of defense. When you criminally fail to protect your own bank from money laundering you put our financial system at risk, and we will hold you accountable.

    But it’s never too late to do the right thing. After TD learned of our investigation, the Bank provided strong cooperation. For example, TD identified additional misconduct and provided evidence of that misconduct to the department. Some of that evidence helped advance our investigation of individuals, including video surveillance footage TD provided after reviewing hundreds of hours of videotape and materials recovered because TD secured the workplaces of employees involved in misconduct.

    What’s more, TD took steps on its own to hold its employees financially accountable. The Bank clawed back bonuses, including for its CEO and other executives, resulting in a dollar-for-dollar reduction of the Bank’s fine of approximately $2 million, consistent with the Criminal Division’s Pilot Program on Compensation Incentives and Clawbacks. Under that pilot program, as of today, 10 companies that have resolved with the Criminal Division have implemented compliance metrics in their compensation system. But today’s resolution marks a first. This is the first time a company has committed to clawing back compensation prospectively. Over the next few months, TD will identify additional compensation it will claw back from its employees. And if the bank is successful during the term of its agreement with the department, the Criminal Division will credit those clawbacks against the fine.

    TD has also started on the path to reform, beginning to remediate its compliance system, committing to additional compliance enhancements, and agreeing to retain an independent compliance monitor. That monitor will closely assess TD’s compliance with our agreement while moving swiftly to ensure that TD makes necessary reforms. Under the close oversight of the department and the monitor, TD can right this ship. While there is a long road ahead, today’s resolution demonstrates that accepting responsibility and cooperating with the department can ensure that even the largest companies can be held accountable for serious crimes, but also choose a different path and successfully move their business forward in full compliance with the law.

    I want to thank our trial attorneys in the Money Laundering and Asset Recovery Section’s Bank Integrity Unit and our partners in the District of New Jersey, along with our law enforcement partners at IRS-Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration. And now I’ll turn it over to the U.S. Attorney for the District of New Jersey, Philip Sellinger.

    MIL Security OSI

  • MIL-OSI Security: Two Russian Nationals Charged for Their Participation in an Illicit Procurement Network That Exported to Russia Sensitive U.S.-Sourced Microelectronics with Military Applications in Violation of U.S. Export Controls

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)

    Damian Williams, the United States Attorney for the Southern District of New York, James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan Carson, the Special Agent in Charge of the Office of Export Enforcement of the New York Field Office of the Bureau of Industry and Security of the U.S. Department of Commerce, announced today that ZHANNA SOLDATENKOVA and RUSLAN ALMETOV, both Russian nationals, were indicted along with ARTHUR PETROV, a dual Russian and German national, for export control violations, smuggling, wire fraud, and money laundering in connection with their alleged participation in a scheme to procure U.S.-sourced microelectronics subject to U.S. export controls on behalf of a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.  PETROV, previously charged in a criminal Complaint, was arrested on August 26, 2023, in the Republic of Cyprus at the request of the U.S. and was extradited from the Republic of Cyprus earlier this year.  He arrived in the Southern District of New York on August 8, 2024, and was ordered detained.  SOLDATENKOVA and ALMETOV are at large.  The case is assigned to U.S. District Judge Alvin K. Hellerstein.

    The indictment can be read here.

    U.S. Attorney Damian Williams said: “Zhanna Soldatenkova and Ruslan Almetov are now charged, alongside previously charged Arthur Petrov, for conspiring to smuggle microelectronics with military applications from U.S. distributors to a Russian company that supplies manufacturers for the Russian military.  This Office is committed to exposing the full breadth of such illicit procurement networks and protecting our national security.”

    Assistant Director in Charge James E. Dennehy said: “Zhanna Soldatenkova and Ruslan Almetova, along with Arthur Petrov, allegedly conspired to evade export laws as members of an illegal international procurement network to help aid the Russian defense industry.  As alleged, by deliberately concealing the true nature of their business, they not only violated the law but ultimately put the national security of our country at risk.  The FBI, in concert with our partners, is determined to protect the United States and will hold accountable anyone attempting to harm our nation.”

    Special Agent in Charge Jonathan Carson said: “As this action demonstrates, we will work with our domestic and international law enforcement partners to charge alleged violators wherever they may be worldwide. Illegal global procurement networks that prop up the Russian war machine will not be tolerated. That’s why we and our law enforcement partners are working nonstop to ensure that those operating such networks face American justice.”

    According to the allegations contained in the Indictment returned in Manhattan federal court:[1]

    PETROV is a dual Russian-German national who previously resided in Russia and Cyprus and worked for LLC Electrocom VPK (“Electrocom”), a Russia-based supplier of critical electronics components for manufacturers supplying weaponry and other equipment to the Russian military.  SOLDATENKOVA is a Russian national who has resided in Russia and worked for Electrocom.  ALMETOV is also a Russian national who has resided in Russia and was the co-founder and served as General Director of Electrocom.

    PETROV, SOLDATENKOVA, and ALMETOV operated an illicit procurement network in Russia and elsewhere overseas.  More specifically, they fraudulently procured from U.S. distributors large quantities of microelectronics subject to U.S. export controls on behalf of Electrocom.  To carry out the scheme, PETROV, SOLDATENKOVA, and ALMETOV used shell companies and other deceptive means to conceal that the electronics components were destined for Russia.  The technology that the defendants procured in contravention of export controls had significant military applications and included various types of electronics components of the sort that have been recovered in Russian military hardware on the battlefield in Ukraine, such as Russian guided missiles, drones, and electronic warfare and communications devices.

    To perpetrate the scheme, PETROV first acquired the controlled microelectronics from U.S.-based electronics exporters using a Cyprus-based shell company, Astrafteros Technokosmos LTD (“Astrafteros”), which he operated.  PETROV procured these sensitive electronics components by falsely representing to the U.S. exporters that Astrafteros was purchasing the items for fire security systems, among other commercial uses, and that the ultimate end-users and destinations of the electronics are companies in Cyprus or other third countries — when in fact the components were destined for Electrocom in Russia, which supplies manufacturers for the Russian military.  The microelectronics that PETROV procured as part of the conspiracy included, among other things, microcontrollers and integrated circuits on the Commerce Control List maintained by the Commerce Department and which could not lawfully be exported or reexported to Russia without a license from the Commerce Department.  Invoices provided to PETROV by the U.S. distributors expressly noted that these microcontrollers and integrated circuits were subject to U.S. export controls.

    To evade these controls, PETROV, SOLDATENKOVA, and ALMETOV worked together to transship the controlled items procured by PETROV using pass-through entities operated by SOLDATENKOVA and ALMETOV in third countries.  SOLDATENKOVA and ALMETOV then caused the items to be shipped, sometimes through yet another country, to the ultimate destination: Electrocom in Saint Petersburg, Russia.  At all times, PETROV, SOLDATENKOVA, and ALMETOV concealed from the U.S. distributors that they were procuring the controlled electronics components on behalf of Electrocom and that the items were destined for Russia.  During the course of the conspiracy, PETROV, SOLDATENKOVA, and ALMETOV procured from U.S. distributors and shipped to Russia more than $225,000 worth of controlled electronics components with military applications.

    *                *                *

    A table containing the charges and maximum penalties for PETROV, 35, of Russia and Cyprus, SOLDATENKOVA, 36, of Russia, and ALMETOV, 43, of Russia, is set forth below.  The maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

    Charge

    Defendants

    Maximum Penalties

    Count One:  Conspiracy to defraud the United States (18 U.S.C. § 371) PETROV, SOLDATENKOVA, and ALMETOV 5 years’ imprisonment
    Count Two:  Conspiracy to violate the Export Control Reform Act (“ECRA”) (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment
    Count Three:  Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV and SOLDATENKOVA 20 years’ imprisonment
    Count Four:  Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV and SOLDATENKOVA 20 years’ imprisonment
    Count Five:  Violation of ECRA (50 U.S.C. §§ 4819(a)(1), 4819(a)(2)(A)-G), and 4819(b); 15 C.F.R. §§ 736.2(b)(1), 746.8(a)(1), and 764.2) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment
    Count Six:  Conspiracy to smuggle goods from the United States (18 U.S.C. § 371) PETROV, SOLDATENKOVA, and ALMETOV 5 years’ imprisonment
    Count Seven:  Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2) PETROV and SOLDATENKOVA 10 years’ imprisonment
    Count Eight:  Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2) PETROV and SOLDATENKOVA 10 years’ imprisonment
    Count Nine:  Smuggling goods from the United States (18 U.S.C. §§ 554(a) and 2) PETROV, SOLDATENKOVA, and ALMETOV 10 years’ imprisonment
    Count Ten:  Conspiracy to commit wire fraud (18 U.S.C. § 1349) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment
    Count Eleven:  Conspiracy to commit money laundering (18 U.S.C. §§ 1956(h), 1956(f)) PETROV, SOLDATENKOVA, and ALMETOV 20 years’ imprisonment

    Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the Bureau of Industry and Security of the Department of Commerce.  Mr. Williams also thanked the FBI’s Legal Attaché offices in Poland, Germany, and Athens, Greece; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; the Department of Justice’s Office of International Affairs; the Republic of Cyprus Ministry of Justice and Public Order; and the Law Office of the Republic for their assistance.  The Republic of Cyprus National Police also provided critical assistance in effecting the defendant’s arrest and detention at the request of the U.S.

    This prosecution is coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force.  Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the U.S. has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine.  The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.

    This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution, with assistance from Trial Attorney Maria Fedor of the Counterintelligence and Export Control Section.

    The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.


    [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI

  • MIL-OSI Security: Two Los Angeles-Area Residents Arrested on Indictment Alleging Scheme to Fraudulently Obtain and Launder Medicare Proceeds

    Source: Federal Bureau of Investigation (FBI) State Crime Alerts (b)

    LOS ANGELES – A Los Angeles woman and a San Fernando Valley man were arrested today on a 24-count federal grand jury indictment alleging a scheme to defraud Medicare out of more than $54 million via hospice and diagnostic testing services that were never provided and then laundered their illicit proceeds, including by buying millions of dollars’ worth of gold bars and coins.

    Sophia Shaklian, 36, of the Larchmont area of Los Angeles, and Alex Alexsanian, 47, of Burbank, were arrested early this morning. They are scheduled to be arraigned this afternoon in United States District Court in downtown Los Angeles.

    Shaklian is charged with 16 counts of health care fraud and four counts of transactional money laundering. Alexsanian is charged with one count of conspiracy to launder monetary instruments and three counts of concealment money laundering.

    According to the indictment that a federal grand jury returned on October 2, Shaklian, often using aliases, managed and submitted claims for seven health care providers enrolled with Medicare and located in Los Angeles County. These businesses included a hospice company she owned – the Pasadena-based Chateau d’Lumina Hospice and Palliative Care – and several diagnostic testing companies: Saint Gorge Radiology in Sylmar; Hope Diagnostics in North Hollywood; Direct Imaging & Diagnostics and Lab One – both located in Hollywood; and Labtech and Lifescan Diagnostics in Claremont.

    From March 2019 to August 2024, these companies allegedly submitted more than $54 million in fraudulent claims to Medicare for services that were never provided and not needed. In total, they received more than $23 million for those claims. Shaklian allegedly laundered Medicare funds paid to Chateau by transferring them to accounts in the name of “Varsenic Babaian,” a synthetic or fake identity. 

    Alexsanian allegedly directed a foreign national to open Saint Gorge Radiology, and to acquire Medicare provider Console Hospice in Van Nuys, and then provide control of those companies and their bank accounts and the foreign national’s personal bank accounts to Alexsanian.

    Alexsanian conspired with the foreign national (who soon left the country) and others to have Saint Gorge Radiology and Console Hospice submit fraudulent claims to Medicare for services not provided and then laundered the Medicare reimbursements they received, as well as funds deposited into their accounts through the “Babaian” identity, and used them to, among other things, buy more than $6 million in gold bars and coins.

    An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.

    If convicted of all charges, Shaklian would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count and up to 20 years in federal prison for each money laundering count. Alexsanian would face up to 20 years in federal prison for each count. 

    The United States Department of Health and Human Services Office of the Inspector General and the FBI are investigating this matter.

    Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.

    MIL Security OSI

  • MIL-OSI Global: Humanity’s future depends on our ability to live in harmony with nature

    Source: The Conversation – Canada – By Liette Vasseur, Professor, Biological Sciences, Brock University

    The world is facing multiple — potentially catastrophic — crises, including inequality, poverty, food insecurity, climate change and biodiversity loss. These issues are interconnected and require systemic solutions, as changes in one system affects others.

    However, human systems have largely failed to acknowledge their connection to ecological systems. Most modern societies have dominating and exploitative relationships with nature, which are underpinned by imperialist and dualistic thinking that divides living beings into racial, gender, class or species hierarchies.

    Our current mindset, with its focus on competition, growth and profit, has been a key contributor to social and ecological crises. Even more alarming is that this mindset has depleted nature to the point that it may soon fail to sustain human and non-human lives entirely.

    Sustainable and equitable well-being

    Policies for future survival and prosperity must address the interconnected crises affecting the world today. These challenges are pushing social and economic systems beyond their sustainable limits.

    While current sustainability efforts, such as those outlined in Earth for All: A Survival Guide for Humanity — a collaboration between scientists and economists from around the world — and the United Nations’ Pact for the Future offer pathways for action, they often fall short. These initiatives, though well-intentioned, remain rooted in a business-as-usual approach.




    Read more:
    Have we reached the end of nature? Our relationship with the environment is in crisis


    This isn’t enough. What’s needed is a transformative shift in how we interact with the natural world. A reciprocal relationship between humans and nature, where humans give back to the environment as much as we take, is essential. Sustainable and equitable well-being must be placed at the centre of human societies.

    Central to this transformation is the need to ensure good lives for all while staying within the Earth’s planetary boundaries. These boundaries are the limits within which humanity can safely operate without causing irreversible environmental harm. This will require a new economic mindset that enables people to live with nature, instead of destroying it.

    Change is daunting, but possible

    Though the scale of change needed may seem daunting, it’s achievable and already in motion in some places. In many communities around the world, like Puget Sound on the northwestern coast of Washington state, people are already living in ways that allow humans and ecosystems to flourish.

    In other regions, like Ecuador and Sumas First Nation, new possibilities are emerging for building human societies that operate within the planetary boundaries. Humans are exceptionally adaptable and have the advantage of foresight and the ability to transform entire systems through ethical collaboration.

    Individual action is one necessary element to accelerate this shift. Change often starts small, with individuals and small groups adjusting their lives. But while personal choices do matter, individuals must also push for systemic changes in their communities, organizations, and broader society.

    To make nature-connected living more widely accessible, collaborative, equitable and intentional efforts are needed. This involves intercultural communication, collaboration and open dialogue to ensure diverse perspectives are considered in decision-making processes.

    Thoughtfully considering the direct and indirect impacts of our action, including the immediate and long-term consequences of any decisions, will create more equitable and sustainable systems.

    People looking to create meaningful change should seek to support a range of groups and organizations dedicated to environmental and social justice. This includes Indigenous leaders and treaty protocols, local authorities, environmental advocacy groups, community organizations or labour unions. A good example of this is the work being done by the UNESCO-recognized biosphere reserves.

    Alternative ways of knowing

    The problems facing the world today are vast and multifaceted, and need to be addressed in multiple ways. Both formal knowledge, like scientific research, and informal knowledge, through the Two-Eyed Seeing principle have roles to play in fostering more equitable nature-human relationships.

    Although western scientific knowledge is often centred in evidence based discussion, many valuable solutions stem from alternative ways of knowing, such as Indigenous ecological knowledge. By welcoming and supporting diverse knowledge holders in creating solutions, we can expand the range of approaches, successes and failures from which humanity can learn.

    Creativity — the essence of adaptability — flourishes when different knowledge systems are woven together. However, this must be done ethically and involve consensual and collaborative exchanges to ensure no knowledge system is exploited or undervalued. We must be careful to avoid repeating the mistakes of imperialism and domination that have created our current planetary crises.

    In addition to rethinking how we approach knowledge, rebuilding strong, interconnected relationships between humans and nature also means rethinking our technological systems.

    Technological innovation has been used to exploit the Earth for short-term gains, but it also holds great potential for positive change. It can either maintain or disrupt the status quo, depending on how we use it.

    To build healthier relationships between people and nature, human societies need to adopt a systems thinking approach. This approach looks at the bigger picture, considering the ecological, cultural, political and social aspects of technology in an integrated manner. It ensures that innovation is guided by principles of sustainability and equity.

    What the future holds

    The future will bring massive changes to Earth’s natural environments, accompanied by shocks to political economic and social systems. The survival of human and non-human beings depends on our ability to plan for these challenges.

    Climate change, biodiversity loss and resource depletion are not isolated problems — they are part of an interconnected web of crises that demand urgent and comprehensive action.

    Incremental approaches are not enough to address the scale of these looming threats. Purposefully co-ordinated actions are needed to shift the current trajectory away from exploitation to one of mutual benefit for humans and the natural world.

    What is needed is radical transformation aimed at creating just and flourishing relationships between nature and humanity for the benefit of all current and future life on Earth.

    Christie Manning, Associate Professor of Environmental Studies at Macalester College; Jacqueline Corbett, Professor of Information Systems, Université Laval; and Simone Bignall, Senior Researcher at the University of Technology Sydney, co-authored this article.

    Liette Vasseur receives funding from New Frontiers Research Program Exploration program in Canada.

    Anders Hayden and Mike Jones do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. Humanity’s future depends on our ability to live in harmony with nature – https://theconversation.com/humanitys-future-depends-on-our-ability-to-live-in-harmony-with-nature-233042

    MIL OSI – Global Reports

  • MIL-OSI USA: Pappas Holds Medal Ceremony Honoring WWI “Hello Girl” Grace Derby Banker

    Source: United States House of Representatives – Congressman Chris Pappas (D-NH)

    Today Congressman Chris Pappas (NH-01), Ranking Member of the Veterans’ Affairs Subcommittee on Disability Assistance and Memorial Affairs (DAMA), held a medal ceremony to honor “Hello Girl” Grace Derby Banker. During the ceremony, Pappas presented a World War I Victory Medal and a World War I Victory Button Bronze in recognition of Grace Derby Banker’s service to our nation with the U.S. Army Signal Corps to her granddaughter, Carolyn Timbie.

    During World War I, women from across the country served as telephone operators in the U.S. Army Signal Corps, nicknamed “Hello Girls”. After their service, they were treated as citizen volunteers and not given recognition as members of the military. It was not until 1977 with the G.I. Improvement Bill signed into law that the Hello Girls finally received recognition for their service from the government, given discharges from the military, and granted veteran benefits.

    In June, Carolyn Timbie reached out to Congressman Pappas’s office for assistance in securing the WWI Victory Medal for her grandmother, Grace Derby Banker who served during World War I as chief operator of mobile for the American Expeditionary Forces in the U.S. Army Signal Corps or a “Hello Girl”. In 1919, Banker received a Distinguished Service Medal for her work and leadership. It was confirmed last month that Grace Derby Banker was entitled to these additional awards.

    “Grace Derby Banker’s story is powerful and it is uniquely American. During World War I, Grace Derby Banker used her experience as a telephone operator in civilian life to serve her country in the American Expeditionary Forces in the U.S. Army Signal Corps. She led thirty-three women, served in harsh conditions, and was often on the front lines for nearly two years. Their work was essential to maintain consistent communications between the various battle elements, no doubt saving lives and helping bring about victory,” said Congressman Pappas. “It was an honor for my office to assist Carolyn Timbie in securing the WWI Victory Medal and the WWI Victory Medal Bronze in recognition of Grace Derby Banker’s service, as well as a new copy of the Distinguished Service Award medal. These are small tokens of our appreciation for the service and sacrifice of Grace Derby Banker. I want to thank Carolyn Timbie for her advocacy on behalf of her grandmother and for working so hard to keep the story of the Hello Girls alive and well, and I would urge any veteran or military family that is looking for help or assistance of any kind to reach out to my office.”

    “It has been an absolute honor and pleasure to be here today with Congressman Pappas and all the supporters of my grandmother Grace Derby Banker, along with the supporters for the Hello Girls Congressional Gold Medal Act. We have waited 106 years for my grandmother to receive this honor, and we could not have done it without the assistance of Congressman Pappas’s office,” said Carolyn Timbie, granddaughter of Hello Girl Grace Derby Banker.

    Congressman Pappas’s offices are available to assist Granite Staters in the First District with federal agencies, such as the Department of Veterans Affairs, the IRS, the Social Security Administration, and more.

    MIL OSI USA News

  • MIL-OSI USA: During Children’s Health Month, NH Delegation Applauds More Than $19 Million to Protect Children from Lead Poisoning

    Source: United States House of Representatives – Congressman Chris Pappas (D-NH)

    The New Hampshire delegation applauded the announcement of more than $19 million headed to New Hampshire from the U.S. Department of Housing and Urban Development’s (HUD) Lead Hazard Reduction Grant program to help protect families with small children from the dangers of lead-based paint exposure. Specifically, the New Hampshire Housing Finance Authority is receiving $7.75 million, the City of Nashua is receiving $7.7 million, and Sullivan County is receiving $4 million through the grant program.

    “The health of our children must always be a top priority, and protecting them from lead and other hazardous materials is essential in this effort,” said Congressman Pappas. “These funds will help New Hampshire families address lead-based paint and other health issues within our older housing supply to ensure our kids can grow up in a safe environment. I’ll continue working to address the needs of our children, families, and communities.”

    “Lead-based paint poses a serious health threat to children, and in states like New Hampshire where many of our neighborhoods have older housing stock, we must make every effort to protect families,” said Senator Shaheen. “This federal funding will help protect Granite State children from lead poisoning and exposure to other dangerous contaminants in their homes.”

    “New Hampshire’s children need safe places to live in order to thrive, but lead-based paint in older homes continues to jeopardize their health and development,” said Senator Hassan. “This federal funding to fix homes with lead paint is not only an important investment in the health of our children, but it also will preserve access to affordable housing in New Hampshire – giving more Granite Staters the safe homes and communities that they deserve.”

    “The science is clear: there is no safe amount of lead exposure—particularly for young children,” said Congresswoman Kuster. “I’m pleased to join the rest of the delegation in welcoming these resources heading to Nashua, Bedford, and Newport to help remediate older homes and apartments that contain lead paint and protect our communities from hazardous chemicals.”

    The bipartisan infrastructure law, which the full delegation supported, invested a historic $15 billion to identify and replace lead service lines.

    MIL OSI USA News

  • MIL-OSI USA: Rep. Smith calls for stability and de-escalation of tensions in Middle East

    Source: United States House of Representatives – Congressman Adam Smith (9th District of Washington)

    Representative Smith releases a statement calling for stability and de-escalation of tensions in the Middle East.

    The continued conflict in Gaza, the conflict between Israel and Hezbollah, the ongoing proxy war with Iran, the fight with the Houthis, the fight with Iranian proxies in Syria — all of these conflicts are devastating to the civilian population and continue to place significant numbers of civilians at risk across Gaza, the West Bank, Israel, Lebanon, Yemen, and elsewhere. Each of these conflicts runs the risk of massive escalation.

    The international community needs to recognize that Iran remains the main driver of this conflict. They have backed Hezbollah, the Houthis, Hamas, and other Shia militias in Iraq and Syria for years. Israel is threatened by these extremist proxy groups that continually try to exterminate their country, some of whom explicitly have as their motto “death to the U.S., death to Israel, a curse upon the Jews.” This rhetoric and their attempts to destroy Israel through missiles or terrorist attacks is abominable. Israel has a right to defend itself against these existential threats. However, even as we understand Israel’s motivations to fight back against these extremist groups, the risk of escalation and the cost to the civilian population puts Israel and others in the region at even greater risk.

    The only way out of this regional conflict is to have a coalition of the U.S., Israel, Saudi Arabia, U.A.E., Jordan, Qatar, and other Arab states as a deterrence to Iran. That will never happen if there isn’t a future for the Palestinian people. While I understand Israel’s response to the threat from Iran and all of their proxies, I am adamantly opposed to Israel’s approach to the West Bank. It is unacceptable for Israel to continue to press claims into the West Bank that have no support in international law. It is also completely unacceptable for Israel to not have a plan for a post-Hamas future for Palestinians in Gaza. Peace will never be achieved unless there is a future for the Palestinian people.

    Ceasefire negotiations have never been more important. I support the Biden Administration’s continued efforts to bring parties in the region together to achieve that ceasefire in Gaza, Lebanon, and Israel.

    ###

    MIL OSI USA News

  • MIL-OSI USA: Gov. Justice thanks Commerce Secretary James Bailey for his tenure, announces Nick Preservati as acting replacement

    Source: US State of West Virginia

    CHARLESTON, WV — Gov. Jim Justice announced that Department of Commerce Secretary James Bailey, who has served in the position since 2022, will be stepping down from his role. The Governor expressed his gratitude for Sec. Bailey’s efforts and wished him well in his future endeavors.

    Nick Preservati has been appointed as the acting Secretary for the Department of Commerce. He currently serves as the Executive Director of the West Virginia Office of Energy.

    “I want to take a moment to t​hank Secretary Bailey for all of his hard work over the years,” Gov. Justice said. “I think of James as a good friend. He’s highly qualified and has done an excellent job at Commerce. I wish him nothing but the best. James will undoubtedly be very successful in the future, and I couldn’t be happier for him and his family. He’s done an outstanding job in his role as Secretary, leading some really big efforts.”

    “It has been the honor of a lifetime to serve the citizens of West Virginia as part of Governor Justice’s administration,” Sec. Bailey said. “With leadership and guidance from Governor Justice, I was empowered to work every day to make West Virginia a better place to live, work, and raise a family. I have no doubt that we have accomplished that, and I couldn’t be more grateful for that opportunity.”

    During his tenure, Sec. Bailey took the lead on many of Gov. Justice’s top initiatives, helping bring a record number of jobs and investments to West Virginia, expanding workforce development across the state, advancing large energy projects, and improving West Virginia State Parks with over $250 million in investments.

    Under Gov. Justice’s leadership, Sec. Bailey also led efforts to secure record funds for the Division of Forestry to improve wildfire prevention. He fought to protect natural resources and critical programs like trout stocking and the West Virginia Wildlife Center.

    Sec. Bailey’s last day serving the State of West Virginia will be October 18, 2024.

    MIL OSI USA News

  • MIL-OSI USA: Drug Maker Teva Pharmaceuticals Agrees to Pay $450M in False Claims Act Settlement to Resolve Kickback Allegations Relating to Copayments and Price Fixing

    Source: US State of Vermont

    Teva Pharmaceuticals USA Inc. (Teva USA) and Teva Neuroscience Inc. (collectively, Teva) have agreed to pay $450 million to resolve two matters that allege Teva violated the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). Teva, headquartered in Parsippany, New Jersey, is the largest generic drug manufacturer in the United States. The settlement amount was based on Teva’s ability to pay.

    “Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”

    The settlement encompasses two alleged kickback schemes. First, Teva has agreed to resolve allegations in a complaint the United States filed in the District of Massachusetts in August 2020 that Teva violated and conspired to violate the AKS and FCA by paying Medicare patients’ cost sharing obligations (copays) for the multiple sclerosis drug Copaxone from 2006 through 2017, while steadily raising Copaxone’s price. In particular, the United States alleged that Teva coordinated and conspired with multiple third parties, including a specialty pharmacy and two allegedly independent copay assistance foundations, to ensure that purported donations to the foundations were used specifically to cover the copays of Medicare Copaxone patients, which Teva knew was prohibited by the AKS, and that Teva thereby caused the submission of false claims to Medicare.

    Second, Teva USA has agreed to resolve separate allegations that it conspired with other generic drug manufacturers to fix prices for pravastatin, a drug widely used to treat high cholesterol and triglyceride levels, as well as two other generic drugs, clotrimazole and tobramycin. Teva USA previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Teva USA paid a criminal penalty of $225 million and admitted to conspiring with three other generic drug companies to fix prices on certain generic drugs. Under the civil settlement announced today, Teva agreed to resolve allegations that the benefits it received under its price fixing scheme constituted illegal kickbacks.

    Teva will pay collectively $450 million to resolve the two kickback schemes. This payment is in addition to the criminal penalty paid by Teva USA under its deferred prosecution agreement. 

    “Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members and others.”

    “For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers.

    “The Medicare program’s copay structure serves as a safeguard against the artificial inflation of drug prices. When a pharmaceutical company manipulates drug prices through collusion, or disguises kickbacks as charitable donations to subsidize copays for its own drugs, the integrity of the Medicare program is jeopardized,” said Assistant Inspector General for Investigations Adam Globerman of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This type of conduct is unacceptable, and HHS-OIG remains committed to thoroughly pursuing allegations of price fixing and kickbacks that put the Medicare program at risk.”

    “The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.”

    Since 2017, the United States has collected over $1 billion, in addition to today’s settlement, from pharmaceutical companies that allegedly used third-party foundations as conduits to unlawfully pay patient copays. The department has also reached settlements with four foundations and a specialty pharmacy pertaining to those allegations. Today’s resolution with Teva is the largest of these settlements to date. The settlement of Teva’s price fixing conduct is the seventh pertaining to allegations of price fixing involving generic drugs, with total recoveries exceeding $500 million.

    The government’s pursuit of these matters illustrates the department’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).

    The resolution of the patient copay matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI.

    Attorneys Douglas Rosenthal and Nelson Wagner of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Abraham R. George, Diane Seol and Evan Panich for the District of Massachusetts handled the matter.

    The civil resolution of the price fixing matter was the result of a coordinated effort between the Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with investigative support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS and Office of Inspector General for the Department of Veterans Affairs.

    Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano for the Eastern District of Pennsylvania handled the matter. Fraud Section financial analyst Sheryl Paynter provided support for both matters.

    The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc. et al., No. 20-cv-11548 (DMA).  

    DMA Settlement

    EDPA Settlement

    MIL OSI USA News

  • MIL-OSI Security: Drug Maker Teva Pharmaceuticals Agrees to Pay $450M in False Claims Act Settlement to Resolve Kickback Allegations Relating to Copayments and Price Fixing

    Source: United States Department of Justice Criminal Division

    Teva Pharmaceuticals USA Inc. (Teva USA) and Teva Neuroscience Inc. (collectively, Teva) have agreed to pay $450 million to resolve two matters that allege Teva violated the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). Teva, headquartered in Parsippany, New Jersey, is the largest generic drug manufacturer in the United States. The settlement amount was based on Teva’s ability to pay.

    “Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.”

    The settlement encompasses two alleged kickback schemes. First, Teva has agreed to resolve allegations in a complaint the United States filed in the District of Massachusetts in August 2020 that Teva violated and conspired to violate the AKS and FCA by paying Medicare patients’ cost sharing obligations (copays) for the multiple sclerosis drug Copaxone from 2006 through 2017, while steadily raising Copaxone’s price. In particular, the United States alleged that Teva coordinated and conspired with multiple third parties, including a specialty pharmacy and two allegedly independent copay assistance foundations, to ensure that purported donations to the foundations were used specifically to cover the copays of Medicare Copaxone patients, which Teva knew was prohibited by the AKS, and that Teva thereby caused the submission of false claims to Medicare.

    Second, Teva USA has agreed to resolve separate allegations that it conspired with other generic drug manufacturers to fix prices for pravastatin, a drug widely used to treat high cholesterol and triglyceride levels, as well as two other generic drugs, clotrimazole and tobramycin. Teva USA previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Teva USA paid a criminal penalty of $225 million and admitted to conspiring with three other generic drug companies to fix prices on certain generic drugs. Under the civil settlement announced today, Teva agreed to resolve allegations that the benefits it received under its price fixing scheme constituted illegal kickbacks.

    Teva will pay collectively $450 million to resolve the two kickback schemes. This payment is in addition to the criminal penalty paid by Teva USA under its deferred prosecution agreement. 

    “Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members and others.”

    “For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers.

    “The Medicare program’s copay structure serves as a safeguard against the artificial inflation of drug prices. When a pharmaceutical company manipulates drug prices through collusion, or disguises kickbacks as charitable donations to subsidize copays for its own drugs, the integrity of the Medicare program is jeopardized,” said Assistant Inspector General for Investigations Adam Globerman of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This type of conduct is unacceptable, and HHS-OIG remains committed to thoroughly pursuing allegations of price fixing and kickbacks that put the Medicare program at risk.”

    “The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.”

    Since 2017, the United States has collected over $1 billion, in addition to today’s settlement, from pharmaceutical companies that allegedly used third-party foundations as conduits to unlawfully pay patient copays. The department has also reached settlements with four foundations and a specialty pharmacy pertaining to those allegations. Today’s resolution with Teva is the largest of these settlements to date. The settlement of Teva’s price fixing conduct is the seventh pertaining to allegations of price fixing involving generic drugs, with total recoveries exceeding $500 million.

    The government’s pursuit of these matters illustrates the department’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477).

    The resolution of the patient copay matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI.

    Attorneys Douglas Rosenthal and Nelson Wagner of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Abraham R. George, Diane Seol and Evan Panich for the District of Massachusetts handled the matter.

    The civil resolution of the price fixing matter was the result of a coordinated effort between the Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with investigative support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS and Office of Inspector General for the Department of Veterans Affairs.

    Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano for the Eastern District of Pennsylvania handled the matter. Fraud Section financial analyst Sheryl Paynter provided support for both matters.

    The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc. et al., No. 20-cv-11548 (DMA).  

    DMA Settlement

    EDPA Settlement

    MIL Security OSI

  • MIL-OSI USA: TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: US State of Vermont

    WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. 

    TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.

    TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).

    “By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”

    “For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”

    “For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.” 

    “TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”

    According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.

    Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”

    Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.

    TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.

    As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.

    The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.

    IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance.

    Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case.

    MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

    MIL OSI USA News

  • MIL-OSI USA: Transcript: World Mental Health Day Festival

    Source: US State of New York

    Earlier today, Governor Kathy Hochul participated in a fireside chat at The Project Healthy Minds World Mental Health Day Festival. World Mental Health Day was established on October 10, 1992 by the World Federation for Mental Health. Since then, it has been observed every year with the aim of raising awareness in the global community about critical mental health agendas through collaboration with various partners to take action and create lasting change.

    VIDEO of the event is available on YouTube here and available in TV quality (h.264, mp4) format here.

    AUDIO of the Governor’s remarks is available here.

    PHOTOS of the event are available on the Governor’s Flickr page.

    A rush transcript of the Governor’s remarks is available below:

    Linsey Davis, ABC News: Good morning, everyone. Good morning, and thank you so much for joining us on this World Mental Health Day. We are excited to have this conversation with regard to mental health — America’s fraying social fabric — which is such a necessary and worthwhile conversation to have. And we are so glad to have with us Kathy Hochul, the 57th Governor of New York — first female Governor of New York.

    Governor Hochul: Yes. Thank you, everybody.

    Linsey Davis, ABC News: And not only do we have in her an advocate when it comes to mental health reform, but also with abortion rights and gun safety and beyond. But in particular, today we’re going to really talk about the status of mental health when it comes to our youth both in the State of New York and beyond, because a number of the initiatives that you’ve actually started are really a model that the rest of the country is looking at and implementing. And so, we just thank you so much for taking the time to have this really critical and necessary conversation.

    You know, it’s been said that if you’re not afraid, you’re not paying attention. And I think that is certainly true of these times when we think about — whether it’s natural disasters or the global conflict in Ukraine or Israel, and the slightly contentious election for President that we’re in the midst of — but all of these have ramifications when it comes to our young people. And I want to get to that larger crisis that’s taking place, but first I want to talk about — further compounding all of this — is that there are still lingering effects from COVID-19.

    Governor Hochul: That’s exactly right. I would put that at the top of the list of what maybe precipitated this unusual time in our history where we’re finding that childhood is no longer a time of joy. It is enormously stressful. And to see kids in middle school and high school in particular that are really devolving into a dark place — and this is not from me reading books. This is from me spending two years on the road convening young people in libraries and classrooms and different community centers all over the State, and asking them what’s going on. Why are these statistics that we’re seeing about — particularly young women contemplating suicide and actually following through with it — happening? The depression, the anxiety — all these parallel factors are going on at a time when people are not recovered from the pandemic.

    And I say that to adults and they don’t even think about it anymore because their resiliency was baked into them. As adults, you’ve been through a lot. When you are a 12-year-old or a 16-year-old, you don’t have those natural coping skills. And those kids today are still talking about the pandemic that we have put in the rear view mirror.

    But parallel with that was the rise in social media algorithms that are addictive. So, this was the imperfect storm that — the collision of which — has affected the mental health of our kids, and we have to do something about it because we’re the adults in the room, we’re the adults in their lives and they’re asking us, as one young woman said to me, “You have to save us from ourselves. We cannot put down the phones, we cannot break the addiction.” And I have to do something. I’m the first woman governor, but also I’m the first mom governor whose kids have gone through this, and I see so many family members and so, I applaud you. And also Project Healthy Mind for putting a spotlight on something that four or five years ago I don’t think there would have been as much interest in, but now even the Surgeon General has declared this a crisis. And we, in leadership positions, have no option but to act, and I’ve been doing this for years.

    Linsey Davis, ABC News: And when you talk about the stress, anxiety, uncertainty in particular that kids are feeling — give us an idea of some of the initiatives, some of the specific steps that your administration is taking.

    Governor Hochul: Well, number one, when I first became governor three years ago, I knew that there’s still a stigma about seeking help. I mean, I’ve been working on this in the addictive space — opioid addiction — and so people don’t want to get help. Mental health, it seems like you’re admitting a weakness if you seek help. I’m glad to see there’s been an evolution where more people are open about it and talking about it on social media platforms and podcasts, and programs like this that allow people to feel more comfortable with the fact that we’re all imperfect. Sometimes we need help at different points in our lives. But when it came down to what I could do as governor — $1 billion I put on the table. I said, “This means we’re serious.” The whole array of services, whether it’s in schools — which I think is one of the most important places [for there to be] mental health services and clinics inside our schools — to help kids who are starting to show signs of fraying from the stress. If we help them now, we don’t have to commit them to a lifetime of needing services and help later. So, it’s right in the classroom, all the way to dealing with the challenge of homelessness and mental health challenges on our subways — we have embedded teams that are professionals, they’re caring, I’ve met with them so many times, I’ve been there with them — they meet individuals who others may walk by and be afraid of and say, “You know, that person could do harm to myself or my baby in the stroller. I’m a senior citizen going to a doctor’s appointment.” There’s a fear that’s embedded in all of us when you see something that is unknown to you.

    So, let’s get people help. They do not deserve to live on the subways and in our streets; we get them supportive housing so there’s money involved in that as well; opening up more mental health beds.

    During the pandemic — people don’t know this — thousands of beds dedicated for providing mental health services in our hospitals were converted to COVID beds. And then afterward I said, “Well, why aren’t they all back online? I’m tracking the numbers. Why do we have such a shortage in places like New York City? Why is there a shortage of hospital beds available to treat people who need these services?” Well, it turns out that the reimbursement rates were higher for a hospital, more profit could be made if you kept them as non-psychiatric beds because those costs are higher.

    So I said, “That’s not okay.” I closed the gap so they can make the money they need to make on Medicaid provided beds, so that was taken care of. And also making those — bringing them back online. So it’s everything from the classroom to reducing the stigma in countless ways, programs like this, money for programming and supportive services.

    Everything we can think of, we’re trying to do. But my job is to make sure we don’t start another whole generation of young people who are held captive to these algorithms. We have nation leading legislation, and I’ll tell you, taking on the tech companies is not the easiest thing in life to do, but we forced them to adhere to what we’re saying in New York.

    In New York State, as a result of laws that I enacted just a few months ago and with the support of Common Sense Media and other great organizations and our advocates, no longer can social media companies unsolicited — and bombard young people with addictive algorithms without them asking for it. Their parents have to be okay with that. I don’t think too many parents are going to say that’s okay.

    They also cannot send notifications all night long to our kids who need a good night’s sleep. They’re exhausted. You don’t function at a high level as an adult, but certainly not a young person supposed to sit for eight hours a day and be paying attention when you haven’t slept at night because you cannot put down that addictive feature, which is your phone.

    And so that’s where we are now, and again, talking about what’s happening in schools. Stood up to the social media companies. We are a tech society. We are a tech state. We’re a tech city. I welcome the tech companies. This is not an ‘us against them,’ it is saying, “You know better. You are all executives who probably have children. Do you really want your kids to be seeing these dark images and being drawn into places?”

    You put in the word ‘suicide,’ it’s not teaching you how to get help and supportive and uplifting messages to help you heal, it teaches you how to commit suicide. That’s what I’m talking about. There are messages that are not appropriate for young people.

    They can, on their own, go to social media sites, but don’t be taking personal information you have collected about a child that you have gathered, and now use that to hold them captive. That’s the cycle we’re going to break here in the State of New York, and I hope every other state follows suit.

    Linsey Davis, ABC News: And these are, as you’ve said — yes, there’s applause there — first in the nation social media laws that you are taking to protect our children. But beyond that, you just finished a listening tour with regard to — I guess, that has informed some of your decisions to try to have this initiative to ban cell phones in schools. I’m curious what made you decide, “You know what, we have to do this,” and what has been the reaction, the feedback that you’ve been getting?

    Governor Hochul: Great question. Again, I wanted to hear from parents, teachers, students themselves, administrators, school boards, principals, everybody. So, these are the people I’ve been gathering.

    And what I have universally heard is that school districts and school boards don’t want to be the heavies. They know this should happen, and those who are courageous enough to go forward already, and some school districts have, I know Lackawanna in Western New York, where I was born in the City of Lackawanna, they’ve done it; there’s a number in Westchester; Schoharie County was the first that I could think of that had a widespread unveiling of this. They said it was hard at first, and parents were resistant. Teachers didn’t know what would happen, they didn’t want to be the cell phone police, they wanted to just teach. But they are the happiest school district in our state — I’m going to go out on a limb here. Because the school superintendent said to me, “We heard something we haven’t heard in years, children’s voices – children’s voices at lunch, physical education, in the hallways.”

    Linsey Davis, ABC News: They’re actually interacting with each other.

    Governor Hochul: They’re talking, they’re sometimes yelling at each other. Sometimes there’s things — he says, “They’re not always friendly.” But he says, “And they’re making eye contact with each other.” I mean, think about what happens when you spend your day like this. You lose those human interaction skills that we expect young people to graduate from school having developed. And what happens to an 18-year-old, who does not have that because we’ve allowed this phenomenon and this distraction all day long. And they don’t develop that. When they go to a workplace, they want to get a job at Hudson Yards and be part of a team and, and the creative collisions that come up with the brilliant ideas that New York City is known for. It’s not going to happen because we’ve not allowed them to emerge as fully functioning adults by letting this distraction – And teachers, I’ll tell you, when I say distraction — 74 percent of teachers in the United States of America say this is such a distraction they want them gone because they’re in competition. One teacher said, “I don’t even want to teach anymore. I’m in competition with this cell phone, and they’re not looking at me, they’re not paying attention. I’m trying to create a bond and a relationship with them. And I, by the end of this school year, I’ve thrown in the towel, I can’t do this anymore.” So the teachers want it. School districts want me to be the heavy. I said, “I get blamed for everything anyhow, just add it to the list, right?” It’s like, “I can take it, don’t worry about me.” So I said, “I’ll be the heavy because this is right.”

    The parents are the ones you worry about, right? And I’m a mom. My kids were in middle school during Columbine. So that shapes how you feel, that insecurity when the most, you know, your most precious person in the world to you is your child going off to kindergarten. And again, I still sometimes think about how I cried for days when my kid’s going off to kindergarten. Then they go off to college, it’s like, bye, give us a call once in a while.

    So, but, it’s hard. And when you see this — the shootings, the mass shootings, we did an event with Gabby Giffords yesterday on gun violence, and thank you for raising that. We have the toughest gun laws in the country, by the way, and the lowest — third lowest homicide rate by the — third lowest in the nation. So that’s another focus, but it ties into anxiety that parents have and they feel now that because they have to be connected with their kids all day long and, and especially if there’s a crisis on the school grounds. There’s the worst nightmare of all: a school shooter on the loose near your child. I also was thinking, well, maybe this is going be too hard for parents because, you know, it’s a lot to ask and they’re going to be worried.

    When I talk to law enforcement, and they said to me, “Tell the parents and we’ll tell them — if there is an active shooter on the grounds, in the building — the last thing you want your child to be doing is looking for their cell phone, starting to record things, talking to their friends, calling their parents.” He said, “They need to be focused on the adult in the room who will lead them to safety.” And that was my aha moment. I said, “You’re right. Parents need to know that.” So, there’s that safety issue, but also, my kids are adults now. They didn’t have cellphones in school. They’re — it did not happen during their era. Our job is not to raise kids. Our job is to raise adults. Fully functioning adults who know how to interact with others, who are not so attached to their parents every hour of the day throughout school. At some point, you do have to cut the cord. The apron strings as they used to say. No one knows what an apron is anymore, so I don’t say that. I had to make one at Home Ec because they wouldn’t teach us real skills, okay? I wanted to work on cars, with the guys in the shop, but they didn’t let us, okay? So, you have to cut the ties at some point.

    And one first grade teacher said to me, and I love talking to teachers, she says, “I’m fed up with the fact that every child, every six-year-old in my first grade class, has a smartwatch on that the parents send so they can be in touch with their child throughout the day, and they’re like, ‘Oh, the teacher was mean to me, Mommy.’”

    They said they’re getting phone calls from parents: “‘I just got sent to the office.’ Why are you sending my little girl to the office?” So, it’s not functioning. And so, parents, I know it’s hard because you need to go back to a time when you grew up, your parents did not keep track of you all day long. You did not have them as a crutch. And my God, if you forgot your lunch, two options: Borrow one of your friends, see if you can share a sandwich, or the next day, don’t forget. And you won’t forget the next day, right? Oh, because I hear that. “What if they forget their lunch? What if they have to make their after school plans?” Well, we’ll give them the phone back after school and maybe they’ll learn the skill of pre-planning their day. So, I want them to learn coping skills, resiliency and emerge as part of our New York State workforce — fully functioning — and we are the barriers because we’re not being the heavies and saying no, and that’s the path I’m on. I have to work with our Legislature. I have to do a lot more education on this because it’s a change. But, none of us had it and we turned out okay, right?

    Linsey Davis, ABC News: I want to switch gears here for a minute because we are talking about — obviously, in the news — the devastation from Hurricane Milton, and when it comes to national disaster relief, quite often we’re talking about money to build homes and jobs back again, food and all of that. But, when it comes to mental health assistance, what do you think the role of the state and federal government is at that point?

    Governor Hochul: They’re absolutely right about the devastation — so many New Yorkers have a connection to Florida, right? My father’s home, my sister’s home, my brother’s home and my aunt’s home — all in St. Petersburg, heavily damaged. My aunt’s home was already demolished two weeks ago. So, we have connections that are tighter than most other states, so I immediately sent our resources. I said, “Tell the governor we’re on our way.” And, we sent helicopters, search and rescue — 65 people are down there now, we’ll send more.

    So, there’s that side of it, but the trauma inflicted on a community after an event like this is something we cannot overlook. This is like a community that has gone through a mass shooting. I refer back to Buffalo again. We had to provide mental health services to the survivors of the Tops shooting when ten people were gunned down and slaughtered in a grocery store in 2022 because of the color of their skin, and that’s what that white supremacist 18-year-old said he was going to do.

    That community is trying to heal, but you need to provide services so we went in, our mental health teams went in to help them heal. The same thing should happen in communities where you see these people sobbing, standing their whole — everything they’ve built their whole lives, the baby pictures are in a puddle on the street and their wedding album and their clothes.

    It is so hard to see your whole life wiped away, and if we don’t think that has an effect on your mental health and your sense of security forever, then we are wrong. So, we need to be more intentional and provide resources to local social service agencies and say, “Once the storm is cleaned up, don’t assume their lives are cleaned up — that they’re back to normal.” And so, being sensitive to that in government is the smart way to do it. These people need our help and that’s what government is there to do.

    Linsey Davis, ABC News: And we’re just about out of time, but I do want to ask one last question — which I think is a large overarching issue — which is, how do you destigmatize the idea of mental health? Because, a lot of people still — there is a fear or an embarrassment that I need a little help. I need to talk to somebody about this.

    Governor Hochul: That’s when you get the validators that people trust. It’s the hip hop artists, it’s the athletes, it’s the people that, people are watching their — I watch “Only Murders in the Building.” I mean, is that building actually here? I can’t find it. I keep walking around.

    Linsey Davis, ABC News: I think it’s on the Upper West Side.

    Governor Hochul: Okay, I keep walking around trying to find it. I walk around the City all the time. No one knows it’s me, because I can put on a baseball hat and jeans and no one knows who I am, so it’s great. So, I’m always walking around doing things.

    But, more people who do that — I think because we are a society that’s impacted by influencers— Taylor Swift talks about it. I think that’s an important part of it because it’s really hard to break out of that, especially for men, I believe. But I’m really proud of even family members who say, “I have my weekly check in telehealth services with my therapist.” like, thank you. That’s smart, and tell your other friends you’re doing that.

    And I do think that the telehealth services help destigmatize. You don’t have to get up and go into an office and sit in a waiting room, and you might know somebody and you’re all kind of like — I think that’s a brilliant innovation that creates accessibility, even on your cell phone. I’ve got my appointment, I can talk to somebody.

    So, it has gotten much easier and stigma is a powerful negative force on people who should be seeking help. Whether it’s from fentanyl addiction, or opioid addiction. I did commercials on this when I was Lieutenant Governor, trying to destigmatize getting help for those addictions and services that are provided.

    Same thing with mental health. So, there’s not one answer, but forums like this, sharing information — I just talked about mental health on a podcast not long ago, and it’s getting out there. So, I will do my role. Anything I can do in state government, you know. Whether it’s public awareness campaigns, we always are doing this, but I’m open to ideas. I really am.

    We don’t have all the answers, and I want to be helpful. I want to be not just investing, the government investing the most money ever, but having the best results. And it is my state where people dealt with the epicenter of the pandemic, we have to recognize that.

    And we’re the ones who are very anxious about crime. I can tell everybody in the whole City that the crime rates, the murder rate in New York City is almost as low as it was in the 1960s. We have plummeted. Shootings are way down — but I can’t tell you to feel good about that. And that’s what we wrestle with. I want to change the psychology around this and it’s hard, but we have to take it on and say, “I want people to feel good about the City.” Not just, “I’m supposed to feel better because the numbers are down.” I don’t expect that. What I want to do is make people feel that they’re safer, that their kids are going to be okay. And just try to remove some of the stress that is part of everyday life here, because this is an extraordinary place.

    And the benefits so outweigh the negative, and we have to keep focusing on the positive — because life is good. And people sometimes just need a little bit of help, and pulling them upwards and letting them grow. Letting them just really flourish, you know? And mental health is such an important part, it’s the foundation of everything. It’s everything.

    Linsey Davis, ABC News: Well, I think that forums like this, conversations like this, are so helpful. And step one, two three, right? Just to talk about it.

    And we appreciate so much you taking this time — your leadership and the initiatives that you have in order to try to make things better in particular, not just for us, but for our youth. And by extension of our youth, for all of us as the adults. So, we thank you so much. And we thank all of you for being such very intensive listeners today.

    And we do want to remind everybody here — I say it to you as I say it to myself as well, that we have to keep mental health top of mind, right? That is just as important as any other aspect of our wellness.

    And so, again, on this mental health day. We just thank you all so much for taking the time to be together.

    MIL OSI USA News

  • MIL-OSI Security: TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

    Source: United States Department of Justice Criminal Division

    WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. 

    TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs.

    TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN).

    “By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.”

    “For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.”

    “For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.” 

    “TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.”

    According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime.

    Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.”

    Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them.

    TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals.

    As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution.

    The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation.

    IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance.

    Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case.

    MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion.

    This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at http://www.justice.gov/OCDETF.

    MIL Security OSI

  • MIL-OSI USA: Gov. Justice celebrates West Virginia’s Paranormal Trail being met with great interest

    Source: US State of West Virginia

    CHARLESTON, WV — Gov. Jim Justice announced today that West Virginia’s new Paranormal Trail is already seeing tremendous popularity with more than 4,300 people signed up to chase infamous haunts throughout the state.

    An accompanying digital passport allows visitors to check in at haunted locations, earning points and unlocking exciting prizes along the way. Nearly 800 spook-seekers have already checked in on digital passports.

    To experience the haunts of West Virginia and uncover chilling tales, travelers can register to participate in the West Virginia Paranormal Trail online and instantly receive the digital passport via email or text.

    MIL OSI USA News

  • MIL-OSI USA: Rep. Haley Stevens (D-MI) Introduces New Bill at M1 Concourse in Pontiac, MI to Remediate & Redevelop More Disused Manufacturing Space Across U.S.

    Source: United States House of Representatives – Congresswoman Haley Stevens (MI-11)

    PONTIAC, MI – Yesterday, U.S. Representative Haley Stevens (D-MI) introduced the RESTART Communities Act in the U.S. House of Representatives and hosted a press conference about the legislation at the M1 Concourse in Pontiac, MI with Oakland County Executive Dave Coulter, Pontiac Mayor Tim Greimel, M1 Concourse CEO Tim McGrane, and RACER Trust Deputy Redevelopment Manager and Director of Government Relations Patricia Spitzley. U.S. Representative Frank Mrvan (D-IN) co-sponsored this legislation.

    The Revitalization Efforts for Sustainable Transformation and Remediation for Thriving Communities Act or the RESTART Communities Act aims to enhance interagency collaboration at the Federal level to empower local communities with the resources and practices needed to redevelop shuttered manufacturing sites requiring environmental remediation. This legislation will authorize the Federal government to create and disseminate best practices, streamline funding opportunities, provide other essential technical resources, and promote revitalization and remediation stakeholder collaboration to give manufacturing facilities and their surrounding communities a second chance at sustainable economic growth. By simplifying Federal support activities, the RESTART Communities Acempowers local communities to create new economic opportunities and protect the public health.

    “The RESTART Communities Act represents a significant step forward in unlocking incredible economic opportunities for shuttered manufacturing sites across the country, especially those that feature harmful environmental pollution,” said Rep. Haley Stevens (D-MI). “By bringing together local, state, and federal partners,  we can clean up our communities and create new, high-quality jobs in the communities that need them most.”

    “In Northwest Indiana and in manufacturing regions across the country, we must ensure communities have the full and efficient support of the federal government for remediation programs,” said Rep. Frank Mrvan (D-IN). “I am proud to join Rep. Stevens in supporting this outstanding initiative to promote streamlined processes and success for revitalizing local economies.”

    “Representative Stevens has long been a forward-thinking national leader on the need to support collaborative economic revitalization in communities affected by both job losses and environmental concerns,” said Elliott P. Laws, Administrative Trustee, RACER Trust. “The RESTART Communities Act of 2024 provides important tools to promote community-focused solutions on a national scale, including training and educational programs to equip the next generation of leaders with the skills they will need to carry these initiatives in the future. As a member of the White House staff at the time, Representative Stevens was a key figure in building the framework of RACER Trust and has watched as RACER’s application of its mandate has resulted in tens of thousands of new jobs and significant reductions in risks to human health and the environment. We are pleased to support Representative Stevens in her efforts and urge members of Congress to pass the RESTART Communities Act of 2024.”

    “We are grateful for Congresswoman Stevens’ continued bipartisan leadership to support economic development and community revitalization,” said Quentin L. Messer, Jr., Michigan Economic Development Corporation CEO and Michigan Strategic Fund President and Chair. “The RESTART Communities Act supports the core vision of Team Michigan’s ‘Make It in Michigan’ economic development strategy focused on People, Places and Projects by empowering communities to breathe new life into outdated, shuttered manufacturing sites. When we strengthen a community’s ability to create more vibrant places and welcome the businesses that employ their residents, it’s a win for them. By streamlining and simplifying access to essential federal support through this act, more of our friends and neighbors will ‘Make It’ in Michigan.” 

    “Too many communities in Michigan and across the country are dealing with legacy pollution from contaminated sites left behind by industry, and we need more tools for remediation and cleanup,” said Bentley Johnson, federal government affairs director for the Michigan League of Conservation Voters. “We appreciate Congresswoman Stevens’ leadership with the introduction of the RESTART Communities Act, which will make sure that as many resources as possible can go toward remediation and revitalization of contaminated vacant sites. Local communities need all levels of government to be working together to better protect health, and the collaboration created by the RESTART Communities Act will help prevent the public’s exposure to pollution, attract reinvestment for new businesses, and ensure that taxpayer resources are used effectively in the cleanup process.”

    Full text of the legislation can be found here. 

    A complete recording of the press conference and accompanying photos can be found here.

    The RESTART Communities Act is endorsed by the RACER Trust, the Michigan Economic Development Corporation, the Michigan League of Conservation Voters, the Detroit Regional Chamber, Oakland County, United Wholesale Mortgage, and Mayor of Pontiac Tim Greimel. 

    ###

    MIL OSI USA News

  • MIL-OSI USA: Sykes, Evans Introduce Bill to Crack Down on Corporate Investors Buying Up Local Homes, Driving Up Housing Prices

    Source: United States House of Representatives – Representative Dwight Evans (2nd District of Pennsylvania)

    Legislation Would Restrict Tax Breaks for Private Equity Firms and Other Large Outside Investors that Buy Up Homes in Local Communities

    U.S. Representatives Emilia Sykes (OH-13) and Dwight Evans (PA-03) introduced the Stop Predatory Investing Act to restrict tax breaks for big corporate investors that buy up homes, often driving up local housing prices and rents. This legislation would prohibit an investor who acquires 50 or more single-family rental homes from deducting interest or depreciation on those properties. The bill restricts tax breaks for private equity and large investors that currently give them an advantage in the market for affordable single-family homes, and helps make homeownership a reality for more families across the country.

    “With home prices reaching record highs, many Ohioans are struggling to afford homeownership and some are being priced out of the neighborhoods they’ve lived in all of their lives. It’s unfair for homeowners to have to compete with deep-pocketed investors who are adding to their real estate portfolios, meanwhile they drive up rents and reduce the housing supply while receiving generous tax breaks,” said Rep. Sykes. “My bill would prevent corporate landlords from driving up local home prices and restore power to working people who want to buy a home to live and raise their families in.” 

    “As a member of the Ways and Means Committee that oversees tax legislation, I appreciate Representative Sykes’ leadership on this issue and I’m proud to co-lead this bill,” said Rep. Evans. “I think the federal government shouldn’t be subsidizing large investors’ mass buying of single-family homes, just like we don’t want to subsidize mass purchasers buying up concert tickets. Working people deserve a fair chance at buying affordable homes, and this bill would be an important tool to add to the housing toolbox!”

    Private equity and other Wall Street-backed outside investors are a growing problem in local housing markets, and contribute to pushing home ownership further out of reach for many working families. In 2021, 16% of homes in Cleveland were purchased by investors, with one zip code reaching 70%. In Cincinnati, they bought 15% of homes, reaching nearly 50% of homes in some communities. On one street, a single company bought 29 homes. Large investors use technology and all-cash offers to outcompete individual buyers. And because investors often target the same types of affordable starter homes as first-time homebuyers, they push families out of the housing market.

    The Stop Predatory Investing Act is endorsed by Enterprise Community Partners, Local Initiatives Support Corporation (LISC), National Community Stabilization Trust (NCST), and National Housing Law Project (NHLP). 

    MIL OSI USA News

  • MIL-OSI Australia: New West Wyalong key worker accommodation set to welcome health staff

    Source: New South Wales Government 2

    Headline: New West Wyalong key worker accommodation set to welcome health staff

    Published: 10 October 2024

    Released by: Minister for Regional Health


    Healthcare workers in West Wyalong can now access modern, fit-for-purpose accommodation, with three new units completed at West Wyalong Health Service, delivered as part of the NSW Government’s Key Worker Accommodation (KWA) Program.

    The three units are located on the hospital grounds, and will provide a safe, modern and comfortable place for healthcare workers who have relocated to West Wyalong and are still establishing themselves in the community.

    The pre-manufactured units were delivered in August, with the connection of services, furnishing, fencing and landscaping now complete. 

    Each unit is fully furnished and self-contained, and features a screened verandah, light-filled living and dining area, modern kitchen, bedroom with ensuite, and internal laundry.  Parking spaces and secure access are also provided.  

    West Wyalong Health Service is expecting the first occupants to move into the accommodation units shortly. 

    The Murrumbidgee Local Health District is one of three regional local health districts to benefit from the NSW Government’s $45.3 million investment to deliver accommodation for health workers under the KWA Program. 

    New accommodation units are also being delivered at Finley, Leeton and Narrandera, with units expected to be delivered to these sites before the end of the year.  

    Quotes attributable to Regional Health Minister Ryan Park: 

    “It’s exciting to see these units fully established on the West Wyalong Health Service site after being manufactured offsite and delivered on the back of trucks only two months ago.

    “Ensuring these units are available removes a barrier to finding accommodation for healthcare workers wanting to work at West Wyalong Health Service, meaning recruiting and retaining staff will be easier.

    “Recruitment is one of the biggest challenges facing rural and regional hospitals across Australia, which is why we are committing a further $200.1 million to increase key health worker accommodation in the state.”

    Quotes attributable to Labor Spokesperson for Cootamundra Stephen Lawrence MLC: 

    “Affordable, accessible accommodation is a key factor in attracting and retaining health workers and I am looking forward to the West Wyalong community welcoming the first workers into the units and the health service.

    “Investments like this underpin the Minns Labor Government’s focus on strengthening and supporting our highly skilled health workforce to ensure NSW’s regional and rural communities have access to high quality healthcare close to home.”

    MIL OSI News

  • MIL-OSI USA: Warren, Whitehouse Call Out Accounting Regulator for “Profoundly Troubling” Failures, “Unacceptable” Error Rates in Public Company Audits

    US Senate News:

    Source: United States Senator for Massachusetts – Elizabeth Warren
    October 10, 2024
    Nearly half of 2023 audits had significant deficiencies. 
    “This is an astonishing finding that calls for immediate action by the PCAOB—and careful review by regulators….(I)nvestors and the public essentially face a coin flip when it comes to whether they should believe and trust the results of public companies’ audits.”
    Text of Letter (PDF)
    Washington, D.C. – U.S. Senators Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-R.I.), members of the Senate Committee on Finance, called on the Public Company Accounting Oversight Board (PCAOB) to establish stricter accountability for accounting firms with “unacceptable” deficiency rates. The PCAOB is charged with overseeing the audits of public companies to protect investors and provide the public with “informative, accurate, and independent audit reports.” But the agency is not doing its job.
    Last year, the PCAOB’s review of over 200 accounting firms’ audits found that 46% had errors so significant that that auditor “had not obtained sufficient appropriate audit evidence to support its opinion” about a public company’s financial statements and financial reporting. The findings of this review reveal a nearly complete failure by the agency and cast doubts on the auditing process that plays a crucial role for investors in publicly traded companies.
    “[T]he findings of this new analysis reveal a nearly complete failure [by PCAOB], indicating that investors and the public essentially face a coin flip when it comes to whether they should believe and trust the results of public companies’ audits,” wrote Senators Warren and Whitehouse.
    Yet, the PCAOB does not appear to recognize the seriousness of the problem. In fact, Chair Erica Williams said the report showed “small signs of movement in the right direction.” And Board Member Christina Ho downplayed the findings, asserting that “there is another side to the story.” 
    ‘[T]his is the wrong conclusion to draw from an embarrassing and intolerable set of findings,” wrote Sens. Waren and Whitehouse. 
    “The PCAOB must do better. …Either [auditing] standards are inadequate—or the PCAOB is failing to establish accountability for firms that do not meet them. These are unacceptable failures by the PCAOB,” concluded the lawmakers. 
    The senators request clarification about how the PCAOB plans to hold auditors accountable for ongoing problems by October 23, 2024. 
    Senator Warren has led the charge to ensure the PCAOB is effective and accountable to the public: 
    In January 2023, Senators Elizabeth Warren and Ron Wyden (D-Ore.) wrote to the PCAOB raising concerns about crypto accounting firms’ independence and methodology following reports of whitewashed audits of crypto firms with histories of malfeasance. 
    In May 2021, Senators Elizabeth Warren and Bernie Sanders (I-Vt.) sent a letter to Security and Exchange Commission (SEC) Chair Gary Gensler requesting the SEC use its authority to immediately remove and replace the members of the PCAOB, which sets standards for audits of public company financial statements required under Sarbanes-Oxley.
    In April 2017, Senators Elizabeth Warren and Edward J. Markey (D-Mass.) wrote to PCAOB, raising questions and releasing new information about KPMG’s role as the independent auditor of Wells Fargo during the time period in which thousands of Wells Fargo staff engaged in fraudulent behavior affecting millions of accounts.

    MIL OSI USA News

  • MIL-OSI USA: Baldwin Introduces Bipartisan Legislation to Stop Federally Funded School Buses from Being Manufactured in China

    US Senate News:

    Source: United States Senator for Wisconsin Tammy Baldwin
    WASHINGTON, D.C. – U.S. Senator Tammy Baldwin (D-WI) joined a group of bipartisan colleagues to introduce the Secure School Buses Act, legislation to ensure school bus manufacturers tied to foreign entities and countries of concern, including the Chinese Communist Party (CCP), do not receive federal funding.
    “When we use taxpayer dollars, we should be investing those dollars back into American businesses, workers, and communities – not sending money overseas to adversaries like China,” said Senator Baldwin. “I’m proud to work with my Democratic and Republican colleagues to ensure taxpayer investments in our children’s school buses won’t line the pockets of bad actors like China and give them a competitive edge over our workers and businesses.”
    Several years ago, the Environmental Protection Agency (EPA) established the Clean School Bus Program to replace existing school buses with cleaner alternatives.  According to the EPA, they have awarded almost $3 billion in taxpayer funds through this program. Troublingly, certain companies in the electric bus industry have ties to the CCP and other foreign entities of concern. While federal funds are prohibited from going to companies with ties to the CCP and other foreign entities of concern for public transit, there are no such prohibitions for the procurement of school buses. The Secure School Buses Act would prohibit the award of federal grant funding to school bus manufacturers with certain ties to a foreign entity of concern.
    Senator Baldwin has long pushed to close loopholes that allow federal funding to be used for purchasing and manufacturing equipment overseas, including her bipartisan Buy America for Small Shipyard Grants, SAFE TRAINS Act, and Made in America Act, which were signed into law.   
    The Secure School Buses Act is led by Senator Marsha Blackburn (R-TN) and also co-sponsored by Senators Mark Kelly (D-AZ), and John Cornyn (R-TX). The bill is endorsed by the Alliance for American Manufacturing and Heritage Action.
    Click here for bill text.

    MIL OSI USA News

  • MIL-OSI USA: 10.10.2024 Cruz, Cornyn, Colleagues Send Letter Urging Restoration of NADBank’s Water Infrastructure Program

    US Senate News:

    Source: United States Senator for Texas Ted Cruz
    WASHINGTON, D.C. – U.S. Sens. Ted Cruz (R-Texas), John Cornyn (R-Texas), and members from the Texas delegation wrote to the North American Development Bank (NADBank) urging its board to revive the Water Infrastructure Fund to assist border communities facing water shortages.
    In the letter, the members wrote, “As it did in previous years, NADBank should use funding from retained earnings to provide concessional financing such as grants or subsidized loans for water conservation and diversification projects. This investment is essential to the well-being of our American municipalities and agricultural projects, and we fully support the Bank’s role in overseeing and implementing the fund to ensure these resources are allocated effectively.”
    Sens. Cruz and Cornyn sent the letter with Reps. Monica De La Cruz (R-Texas-15), Vincente Gonzalez (D-Texas-34), Tony Gonzales (R-Texas-23), Veronica Escobar (D-Texas-16), and Henry Cuellar (D-Texas-28).
    Read the full letter here or below:
    Dear Members of the Board:
    We are writing to express our strong support for the re-establishment of NADBank’s Water Infrastructure Fund and to urge the Board to take swift action in restoring this critical program. The need for sustainable water management in the U.S.-Mexico border region is greater than ever. Re-establishing the fund would be a significant step in ensuring long-term water security for both municipal and agricultural communities.
    As it did in previous years, NADBank should use funding from retained earnings to provide concessional financing such as grants or subsidized loans for water conservation and diversification projects. This investment is essential to the well-being of our American municipalities and agricultural projects, and we fully support the Bank’s role in overseeing and implementing the fund to ensure these resources are allocated effectively.
    Any grant funding re-established through this program must be directed to both municipal and agricultural projects. These projects should not only conserve water, but also explore new ways to create additional water sources in the border region. In doing so, NADBank can address the urgent need for water security on both sides of the U.S.-Mexico border.
    The flexibility of the grant program is critical. NADBank must be permitted to fund partial project costs in coordination with loans to enable solutions for a wide variety of projects. Additionally, NADBank should not be prohibited from providing loan financing to cover any remaining costs so as to ensure the fund remains adaptable and accessible.
    Leveraging resources from other federal and state agencies such as the USDA-Rural Development, Bureau of Reclamation, and the Texas Water Development Board, will be critical in closing the funding gap for these water projects. We urge the Board to coordinate efforts with these entities to maximize the impact of NADBank’s investments.
    Lastly, we request that U.S. Board members encourage Mexico to meet its capital commitments in a timely manner, and that the U.S. Board use its voice and vote to expedite the release of the remaining U.S. capital in line with Mexico’s payments.
    Thank you for your attention to this matter. We are confident that the re-establishment of the Water Infrastructure Fund will greatly benefit both sides of the border, ensuring that our communities have the water resources they need for the future.
    Sincerely,
    /X/

    MIL OSI USA News

  • MIL-OSI Economics: LLMs are becoming a commodity—Now what?

    Source: Microsoft

    Headline: LLMs are becoming a commodity—Now what?

    Whenever a compelling new AI model emerges, I like to put it through its paces. Recently, I’ve been experimenting with the preview of OpenAI o1 (formerly known as Strawberry), an astonishing new LLM that’s capable of solving complex and layered problems, especially in math, science, and coding. 

    For businesses, o1 model and a slew of others in the works represent a clear opportunity. But they also reflect a less obvious challenge: as LLMs become more sophisticated, they’ll also become quickly commoditized, with not a lot of differentiation between them.  

    In other words, today’s breakthroughs will become tomorrow’s table stakes. This means companies should focus more on how they integrate these models with their own data and workflows, rather than seeing the models themselves as a unique competitive advantage. Embracing this shift in mindset is the way to ensure your business stays ahead.  

    Decoding the latest advance 
    We have historically relied on size to improve the capabilities of LLMs—training them on more and more data, a process that is incredibly time- and resource-intensive.    

    OpenAI o1 introduces an entirely new scaling dimension, one in which a model can become significantly more capable by taking more time to “think” or reason before it responds. That means o1 can tackle problems step by step, much like how a human might approach challenging questions.  

    Ethan Mollick, professor at the Wharton School at the University of Pennsylvania, tried the o1 preview on a tough segment of a crossword puzzle and it performed quite well (though not flawlessly). Crossword puzzles trip up other LLMs because they can’t perform the iterative thinking that’s required: trying a word, scratching it out when it doesn’t fit, and cross-referencing clues to see how answers might fit together. 

    People across the business world are already experimenting with how o1 can handle tasks like responding to RFPs or performing risk assessments. It’s clear that we’ll look back and consider o1 to be one of the most pivotal advancements in generative AI. 

    So if o1 is such a breakthrough, why am I arguing that models will be commoditized? It comes down to competition. With so much energy and opportunity in the AI space, model developers are racing to exceed one another’s advances. We can expect to see more models, from more providers, with more capabilities on par with one another. 

    Technology and commoditization 
    Think of another technology that was groundbreaking for its time: the television. Once a rare luxury made by only a few companies, TVs are now produced by many manufacturers, with excellent models widely available. About two decades ago, flat-screen TVs were coveted and expensive. Now it can cost as much to mount a TV on the wall as it does to buy the TV itself, and “flat-screen TV” has become a redundant phrase. We expect LLMs to follow a similar path to commoditization, but at a swifter pace.  

    What does this mean for businesses? Leaders have to look beyond the LLMs themselves and focus on creating a system around the models that will serve the unique needs of their organizations. Only by understanding AI systems more holistically will they be able to leverage them to innovate, create value, and maintain a competitive edge.  

    Unlocking the real value of AI for business 
    LLMs get a lot of attention in the media, but the real value of AI comes from how you steer, ground, and fine-tune these models with your business data and workflow. And those capabilities come from the full system that surrounds the LLM. 

    Consider the evolution of personal computers. At first the raw power of the CPU was the most critical factor. But as powerful CPUs became commodities, the value of the PC shifted to the overall system—the combination of hardware and software that met your needs. Today, we don’t judge a PC by the power of a single component; it’s the value of the entire package that differentiates one device from another. 

    The same goes for AI: the system is more powerful than any one part. An LLM on its own, no matter how impressive, won’t deliver truly valuable results until it’s grounded in your company’s specific knowledge. When a system like Copilot can draw from your work data—emails, files, meetings, etc.—it becomes much smarter about your business. The system performs better when you can steer it toward your goals and fine-tune it to adapt to your specific needs. Together, all these elements feed the advanced “thinking” that the LLMs can and will be doing. 

    Think about how this system would work for, say, a retailer. An LLM on its own can offer general ideas for training new employees for the sales floor. But AI is more powerful if it also knows the specifics of your business. A highly effective AI agent might create and deliver training modules for your new retail employees, with insight into your latest products, up-to-the-minute promotions, and specialized customer service techniques. 

    Summing it up  
    LLMs are making incredible progress, and I’m delighted every day by what they can accomplish. But their true potential comes through when they’re applied to your unique business data and workflows. That way, they’ll solve more than puzzles—they’ll help untangle your thorniest business problems and reveal new opportunities for creating value.

    MIL OSI Economics

  • MIL-OSI Submissions: Crypto – Bitcoin’s price this Halloween: new record looms? Finance experts’ survey

    Source: Finbold

    There is a long-standing belief within cryptocurrency circles that ‘Uptober’ gives way to the Halloween effect—a period between the end of October and the end of May when markets trend higher.

    To find out what Bitcoin’s price could be during Halloween 2024, Finbold interviewed five finance professionals and revealed that BTC is expected to, on average, hit $69,400 on the spookiest of holidays.

    There is also some variance in the forecasts despite the general optimism, and the average of the upper bounds of the target ranges would see the cryptocurrency trade at $70,400 on Halloween and of the lowest at $59,400.

    Furthermore, the most bullish individual target hopes for a BTC climb to $85,000 on October 31, while the lowest is worried about a drop to $35,000.

    Therefore, Bitcoin’s price this Halloween is expected to be 101.16% higher than in October 2023.

    Finance experts who participated in the survey include the CEO of Joy Wallet, the CEO of ForexMT4Indicators, HodlMaven’s owner and investment research manager at Gold IRA Investment Guy, and the founder of Stock Dork.

    Bitcoin poised for a record Halloween price in 2024

    Nonetheless, Bitcoin is likely to experience a strong October and is already at its highest ‘Uptober’ prices compared to every preceding year, save for 2021. Furthermore, as Andreja Stojanovic, the co-author of the research, pointed out:

    “Should the average expert price target be reached, BTC would set a new record for its Halloween price as it would be $8,100 higher than three years earlier, almost twice as high as in 2023, and more than ten times higher than in 2017 or 2018.”

    Finally, despite expert bullishness and market optimism, October may bring negative surprises for BTC.

    Notably, recent Middle East expectations severely depressed the cryptocurrency’s price at the beginning of the month, and the danger of a further expansion of the war runs high.

    Read the full story with statistics: https://finbold.com/bitcoins-price-this-halloween-new-record-looms-finance-experts-survey/

    MIL OSI – Submitted News

  • MIL-OSI USA: SBA Adds More Counties to Florida Disaster Declaration  

    Source: United States Small Business Administration

    ATLANTA – The U.S. Small Business Administration (SBA) announced today the addition of seven primary counties and ten adjacent counties to the disaster declaration for Hurricane Helene that began on Sept. 23, giving more businesses and residents eligibility to apply for SBA’s low-interest disaster loan program.  

    The declaration covers Alachua, Baker, Bradford, Charlotte, Citrus, Collier, Columbia, Dixie, Duval, Franklin, Gilchrist, Gulf, Hamilton, Hernando, Hillsborough, Jefferson, Lafayette, Lee, Leon, Levy, Madison, Manatee, Pasco, Pinellas, Putnam, Sarasota, Suwannee, Taylor, Union and Wakulla counties which are eligible for both Physical and Economic Injury Disaster Loans from the SBA. Small businesses and most private nonprofit organizations in the following adjacent counties are eligible to apply only for SBA Economic Injury Disaster Loans (EIDLs): Bay, Broward, Calhoun, Clay, DeSoto, Flagler, Gadsden, Glades, Hardee, Hendry, Highlands, Liberty, Marion, Miami-Dade, Monroe, Nassau, Polk, St. Johns, Sumter, Volusia in Florida; Brooks, Charlton, Clinch, Echols, Grady, Lowndes, Thomas and Ware in Georgia. 

    Disaster survivors should not wait to settle with their insurance company before applying for a disaster loan. If a survivor does not know how much of their loss will be covered by insurance or other sources, SBA can make a low-interest disaster loan for the total loss up to its loan limits, provided the borrower agrees to use insurance proceeds to reduce or repay the loan. 

    Businesses and private nonprofit organizations of any size may borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory, and other business assets.   

    For small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private nonprofit organizations, the SBA offers Economic Injury Disaster Loans (EIDLs) to help meet working capital needs caused by the disaster. Economic Injury Disaster Loan assistance is available regardless of whether the business suffered any physical property damage. 

    Disaster loans up to $500,000 are available to homeowners to repair or replace disaster-damaged or destroyed real estate. Homeowners and renters are eligible for up to $100,000 to repair or replace disaster-damaged or destroyed personal property. 

    Interest rates are as low as 4% for businesses, 3.25% for nonprofit organizations, and 2.813% for homeowners and renters, with terms up to 30 years. Interest does not begin to accrue, and monthly payments are not due, until 12 months from the date of the initial disbursement. Loan amounts and terms are set by the SBA and are based on each applicant’s financial condition. 

    Building back smarter and stronger can be an effective recovery tool for future disasters. Applicants may be eligible for a loan amount increase of up to 20% of their physical damages, as verified by the SBA for mitigation purposes. Eligible mitigation improvements may include a safe room or storm shelter, sump pump, French drain or retaining wall to help protect property and occupants from future disasters.  

    “SBA’s disaster loan program offers an important advantage–the chance to incorporate measures that can reduce the risk of future damage,” said Sánchez. “Work with contractors and mitigation professionals to strengthen your property and take advantage of the opportunity to request additional SBA disaster loan funds for these proactive improvements.” 

    With the changes to FEMA’s Sequence of Delivery, survivors are now encouraged to simultaneously apply for FEMA grants and the SBA low-interest disaster loan assistance to fully recover.  FEMA grants are intended to cover necessary expenses and serious needs not paid by insurance or other sources. The SBA disaster loan program is designed for your long-term recovery, to make you whole and get you back to your pre-disaster condition.  Do not wait on the decision for a FEMA grant; apply online and receive additional disaster assistance information at sba.gov/disaster.  

    Applicants may also call the SBA’s Customer Service Center at (800) 659-2955 or send an email to disastercustomerservice@sba.gov for more information on SBA disaster assistance. For people who are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

    The filing deadline to return applications for physical property damage is Nov. 27, 2024. The deadline to return economic injury applications is June 30, 2025.

    ###

    About the U.S. Small Business Administration 

    The U.S. Small Business Administration helps power the American dream of business ownership. As the only go-to resource and voice for small businesses backed by the strength of the federal government, the SBA empowers entrepreneurs and small business owners with the resources and support they need to start, grow or expand their businesses, or recover from a declared disaster. It delivers services through an extensive network of SBA field offices and partnerships with public and private organizations. To learn more, visit http://www.sba.gov. 

    MIL OSI USA News

  • MIL-OSI USA: NASA Awards Aerospace Research, Technology, and Simulations Contract

    Source: NASA

    NASA has selected Metis Technology Solutions Inc. of Albuquerque, New Mexico, to provide engineering services as well as develop and maintain software and hardware used to conduct simulations for aerospace research and development across the agency.
    The Aerospace Research, Technology, and Simulations (ARTS) contract is a hybrid cost-plus-fixed-fee and firm-fixed-price contract with an indefinite-delivery/indefinite-quantity component and has a maximum potential value of $177 million. The performance period begins Sunday, Dec. 1, 2024, with a one-year base period, and options to extend performance through November 2029.
    Under this contract, the company will support the preparation, development, operation, and maintenance of future and existing simulators, integration laboratories, aircraft research systems, simulation work areas, and aircraft research systems. The scope of work also will include the development, testing, and validation of advanced air traffic management automation tools, including, but not limited to, advanced concepts for aviation ecosystems. Work will primarily be performed at NASA’s Ames Research Center in California’s Silicon Valley and NASA’s Langley Research Center in Hampton, Virginia, as well as other agency or government locations, as needed.
    For information about NASA and agency programs, visit:

    Home Page

    -end-
    Tiernan DoyleHeadquarters, Washington202-358-1600tiernan.doyle@nasa.gov
    Rachel HooverAmes Research Center, Silicon Valley, Calif.650-604-4789rachel.hoover@nasa.gov

    MIL OSI USA News