Category: Crime

MIL-OSI USA: ICE, Europol, law enforcement partners, dismantle major illicit drug networks in global Darknet crackdown
Source: US Immigration and Customs Enforcement

WASHINGTON — U.S. Immigration and Customs Enforcement, in collaboration with Europol, the Joint Criminal Opioid and Darknet Enforcement Team, and various national and international partners, announced the results of Operation RapTOR May 22. This historic takedown, led by Europol, resulted in the highest number of seizures in JCODE’s history.

The seizures, to which ICE Homeland Security Investigations significantly contributed, include more than $200 million in currency and digital assets, over two metric tons of drugs, comprised of 144 kilograms of fentanyl or fentanyl-laced narcotics, and over 180 firearms. In addition, the United States and international law enforcement partners made 270 arrests of dark web vendors, buyers, and administrators in Austria, Brazil, France, Germany, Netherlands, South Korea, Spain, Switzerland, United Kingdom, and the United States.

Led by Europol’s European Cyber Crime Centre Operation RapTOR united the FBI-led JCODE team — comprised of ICE HSI and law enforcement partners from the United States, Europe, South America, and Asia — to disrupt fentanyl and opioid trafficking, as well as sale of other illicit goods and services on the Darknet. Building on the successes of prior years’ operations, Operation RapTOR furthered global efforts to dismantle darknet marketplaces, resulting in the seizure of darknet infrastructure from Nemesis, Tor2Door, Bohemia, and Kingdom Markets. These actions provided investigators across the globe with invaluable leads and evidence, strengthening the ongoing fight against cybercrime and illicit activities on the darknet.

“This record-breaking operation sends a clear message to every trafficker hiding behind a screen — your anonymity ends where our global reach begins,” said ICE acting Director Todd Lyons. “Thanks to the unwavering efforts by ICE HSI, Europol and our international partners, we’re cracking the code of the so-called ‘safe spaces’ for cybercriminals — they are in our sights and we’re not backing down.”

The Head of Europol’s European Cybercrime Centre, Edvardas Šileris, commented: “Operation RapTor shows that the dark web is not beyond the reach of law enforcement. Through close cooperation and intelligence sharing, officers across three continents identified and arrested suspects, sending a clear message to those who think they can hide in the shadows. Europol will continue working with our partners to make the internet safer for everyone.”

In furtherance of Operation RapTOR and in their first action as a JCODE member agency, the Office of Foreign Assets Control (OFAC) additionally sanctioned Behrouz Parsarad, an Iranian national, for his role as the founder and operator of Nemesis Market following seizure of the market.

“This historic international seizure of firearms, deadly drugs, and illegal funds will save lives,” said Attorney General Pam Bondi. “Criminals cannot hide behind computer screens or seek refuge on the dark web — this Justice Department will identify and eliminate threats to the American people regardless of where they originate.”

“By cowardly hiding online, these traffickers have wreaked havoc across our country and directly fueled the fentanyl crisis and gun violence impacting our American communities and neighborhoods. But the ease and accessibility of their crimes ends today,” said FBI Director Kash Patel. “The FBI could not do this work without our partners both at home and abroad, and the staggering success of this year’s record-breaking amount of fentanyl, guns, and drugs seized prove that our efforts are working. Anyone looking to anonymously harm our citizens through illicit darknet trafficking: your days of recklessness are numbered.”

“These predators who peddled poison on the dark web might have thought they are untouchable — hiding behind screens, pushing fentanyl, fueling overdoses, and cashing in on misery. However, Operation RapTor just proved them wrong,” said DEA acting Administrator Robert Murphy. “DEA and our global partners reached across borders, across platforms, and across currencies to rip their networks apart. Let this stand as a warning: no mask, no marketplace, and no digital wallet can hide you from facing justice.”

“This unprecedented operation is a testament to the power of global partnership and the unwavering dedication of our team,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “Working through the JCODE initiative, IRS Criminal Investigation and our international partners led the largest and most impactful takedown to date — seizing over $200 million in assets, removing deadly drugs and weapons from circulation, and holding more than 270 individuals accountable. This critical strike against dark web networks fueling the fentanyl crisis marks a proud moment in our ongoing effort to protect communities worldwide.”

“Operation RapTor shows what’s possible when the U.S. Postal Inspection Service and our partners around the world stand united. No matter where criminals hide, we will find them, dismantle their operations, and bring them to justice. This operation was about protecting innocent people from predatory criminals who profit from violence, addiction, and fear. Our commitment is unwavering,” said Chief Postal Inspector Gary Barksdale, United States Postal Inspection Service.

“The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences,” said Chad Menster, Deputy Director of the Food and Drug Administration’s Office of Criminal Investigations (FDA OCI). “We will continue to monitor, investigate and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”

The impact of Operation RapTOR builds on years-long legacy of dark web enforcement and the tireless work of HSI and our U.S. and international law enforcement partners, as seen in the following cases:
- “Incognito Market” Owner Pleads Guilty For Operating One Of The Largest Illegal Narcotics Marketplaces On The Internet
  - Incognito Market sold more than $100 million of narcotics — including hundreds of kilograms of cocaine and methamphetamine as well as heroin, cocaine, LSD, MDMA, oxycodone, methamphetamine, ketamine, and alprazolam, and misbranded prescription medication. Incognito Market was available globally to anyone with internet access and was designed to foster seamless narcotics transactions across the world. It incorporated many features of legitimate e-commerce sites such as branding, advertising, and customer service. While concealing their identities users were able to search thousands of listings for narcotics of their choice. Prescription medication was also listed that was advertised as being authentic but was not, as seen in November 2023, when an undercover federal agent purchased and received several tablets that purported to be oxycodone, but were in fact, fentanyl pills.
- Central District of California | Two Southern California Men Who Supplied Fentanyl Sold to Darknet Customers in All 50 States Sentenced to Federal Prison | United States Department of Justice
  - Ruiz of Orange County was sentenced to over 17 years in federal prison, and Omar Navia of South Los Angeles was separately sentenced to 15 years in federal prison in January 2025 for supplying fentanyl-laced pills to a drug trafficking ring that sold these drugs to more than 1,000 customers nationwide via the Darknet Navia and Ruiz admitted that at least August 2021 to December 2022, they supplied fentanyl-laced pills to Michael Ta, 26, of Westminster, and Rajiv Srinivasan, 38, of Houston, who used the Darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills, 20 pounds of methamphetamine, and other drugs directly to more than 1,000 customers in all 50 states, causing several fatal overdoses in the process.
- In February 2024, the Eastern District of Virginia issued a criminal complaint charging Joshua Vasquez, Joseph Vasquez, and Rafael Roman with conspiracy to distribute 500 grams or more of methamphetamine.
  - Joshua Vasquez, Joseph Vasquez, and Rafael Roman conspired to sell counterfeit Adderall containing methamphetamine on darknet markets such as Bohemia and Tor2Door. The defendants allegedly sold drugs on darknet marketplaces in exchange for cryptocurrency. Collectively, these prolific darknet vendors were responsible fulfilling over 13 thousand drug orders shipped throughout the United States, ranging in size from user quantities, e.g., 5 pills, to “reseller” quantities, e.g., 10 thousand pills. While executing search warrants in New Jersey and New York, Federal Law Enforcement officers seized more than $330 thousand, close to 80 thousand counterfeit Adderall pills, one firearm, and two industrial pill press machines. FBI, FDA, and USPIS investigated this matter with significant contributions from HSI and our law enforcement partners.
- Van Nuys Man Sentenced to More Than 20 Years in Prison for Trafficking Fentanyl and Cocaine via Darknet Marketplaces and Possessing Guns
  - A San Fernando Valley man was sentenced to 20 plus years in federal prison for using darknet marketplaces to sell hundreds of thousands of dollars’ worth of fentanyl-laced pills and cocaine to buyers nationwide. He admitted in court documents to causing one fatal fentanyl overdose. From at least April 2021 to May 2023, McDonald and others conspired to sell fentanyl and cocaine via multiple darknet marketplaces. Specifically, McDonald purchased bulk quantities of fentanyl and cocaine and then directed the activities of other coconspirators to carry out hundreds of drug sales involving the distribution of large quantities of both fentanyl and cocaine, including hundreds of thousands of fentanyl-laced pills. The FBI and the DEA investigated this matter as part of JCODE.
“Cybercriminals think the Darknet makes them untouchable — we just proved they’re dead wrong,” said ICE HSI acting Executive Associate Director Robert Hammer. “HSI is on the front lines of a digital battlefield, deploying cutting-edge tech, relentless enforcement, and global coordination to hunt down these predators. Cybercrime is a global threat, and that’s why we’re committed to working hand-in-hand with our partners at Europol and across the world to dismantle these networks together. If you profit from pain online, we’re looking for you — and you’ll soon learn that no corner of the internet is beyond our reach.”

Operation RapTOR includes law enforcement actions taken by JCODE member agencies, to include ICE HSI; the DEA; FBI; FDA-OCI; IRS-CI; and USPIS; in addition to foreign partners listed below. Credible reporting from the referenced agencies, in addition to contributions from ATF; Army CID; CBP; Department of Treasury’s FinCEN and Office of Foreign Assets Control; and NCIS enabled domestic law enforcement actions in support of Operation RapTOR. Local, state, and other federal agencies also contributed to investigations through task force participation and regional partnerships. The investigations leading to Operation RapTOR were significantly aided by support and coordination from the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section and Computer Crime and Intellectual Property Section, with additional support from the Organized Crime Drug Enforcement Task Forces; multi-agency Special Operations Division; Money Laundering and Asset Recovery Section’s Digital Currency Initiative, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners.

The international partners include Europol; Eurojust; Austria’s Criminal Intelligence Service with various Provincial Criminal Police Departments (Bundeskriminalamt und Landeskriminalämter); Brazil’s Civil Police of the State of Pará (Polícia Civil do Estado do Pará) and Civil Police of the State of São Paulo (Polícia Civil do Estado do São Paulo); France’s French Customs (Douane), National Gendarmerie (Gendarmerie Nationale); Germany‘s Federal Criminal Police Office (Bundeskriminalamt), Prosecutor’s Office in Cologne – Central Cybercrime Contact Point (Staatsanwaltschaft Köln, Zentral- und Ansprechstelle Cybercrime), Central Criminal Investigation in Oldenburg (Zentrale Kriminalinspektion Oldenburg) various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); The Netherlands’s National Police (Politie), Post Interventie Team; Spain’s National Police (Policía Nacional); South Korea’s Seoul Central District Prosecutors’ Office – Darknet Investigations Unit; Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency, National Police Chiefs’ Council.

HSI is a worldwide law enforcement leader in Darknet and other cyber-related criminal investigations. The DHS Cyber Crimes Center (C3) combats cybercrime, online child sexual exploitation, and criminal exploitation of the internet with state-of-the-art forensic technology. The Center investigates large-scale cybercrime threats and provides expertise on cybercrime investigations to the field. It also uses global law enforcement networks, like Europol, to combat cybercrime threats.

C3 delivers computer and cyber-based technical services in support of HSI cases — including investigations into underground online marketplaces selling illegal drugs, weapons and other contraband; enabling the trade of images of child exploitation materials; and facilitating the theft of intellectual property, trade secrets, and export-controlled technology and data.

Individuals across the world can report suspicious criminal activity to the ICE Tip Line 24 hours a day, seven days a week at 866-DHS-2-ICE. Highly trained specialists take reports from both the public and law enforcement agencies on more than 400 laws enforced by ICE.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –
May 27, 2025
MIL-OSI USA: Law Enforcement Seize Record Amounts of Illegal Drugs, Firearms, and Drug Trafficking Proceeds in International Operation Against Darknet Trafficking of Fentanyl and Opioids; 270 Arrested Across Four Continents

Source: US State Government of Utah

WASHINGTON — Today, the Attorney General and the Department of Justice’s Joint Criminal Opioid and Darknet Enforcement (JCODE) team, and international law enforcement partners announced the results of Operation RapTor, including the arrests of 270 dark web vendors, buyers, and administrators in Austria, Brazil, France, Germany, the Netherlands, South Korea, Spain, Switzerland, the United Kingdom, and the United States. Operation RapTor resulted in the highest number of seizures of any JCODE operation, including more than $200 million in currency and digital assets, over two metric tons of drugs, 144 kilograms of fentanyl or fentanyl-laced narcotics, and over 180 firearms.

Operation RapTor was a global, coordinated effort by law enforcement in the United States, Europe, South America, and Asia to disrupt fentanyl and opioid trafficking, as well as the sales of other illicit goods and services, on the darknet, or dark web. Operation RapTor builds on the successes of prior years’ operations and takedowns of marketplaces, which resulted in the seizure of darknet infrastructure from Nemesis, Tor2Door, Bohemia, and Kingdom Markets, providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, reflected in the statistics announced today. In furtherance of Operation RapTor and in its first action as a JCODE member agency, the Office of Foreign Assets Control (OFAC) additionally sanctioned Iranian national Behrouz Parsarad for his role as the founder and operator of Nemesis Market following seizure of the market. Parsarad was also indicted by a federal grand jury on drug trafficking charges related to the illegal business he ran on the dark web.

“This historic international seizure of firearms, deadly drugs, and illegal funds will save lives,” said Attorney General Pam Bondi. “Criminals cannot hide behind computer screens or seek refuge on the dark web – this Justice Department will identify and eliminate threats to the American people regardless of where they originate.”

“By cowardly hiding online, these traffickers have wreaked havoc across our country and directly fueled the fentanyl crisis and gun violence impacting our American communities and neighborhoods. But the ease and accessibility of their crimes ends today,” said FBI Director Kash Patel. “The FBI could not do this work without our partners both at home and abroad, and the staggering success of this year’s record-breaking amount of fentanyl, guns, and drugs seized prove that our efforts are working. Anyone looking to anonymously harm our citizens through illicit darknet trafficking: your days of recklessness are numbered.”

“These predators who peddled poison on the dark web might have thought they are untouchable — hiding behind screens, pushing fentanyl, fueling overdoses, and cashing in on misery. However, Operation RapTor just proved them wrong,” said DEA Acting Administrator Robert Murphy. “DEA and our global partners reached across borders, across platforms, and across currencies to rip their networks apart. Let this stand as a warning: no mask, no marketplace, and no digital wallet can hide you from facing justice.”

“Operation RapTor shows that the dark web is not beyond the reach of law enforcement,” said Head of Europol’s European Cybercrime Centre, Edvardas Šileris. “Through close cooperation and intelligence sharing, officers across three continents identified and arrested suspects, sending a clear message to those who think they can hide in the shadows. Europol will continue working with our partners to make the internet safer for everyone.”

“This unprecedented operation is a testament to the power of global partnership and the unwavering dedication of our team,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “Working through the JCODE initiative, IRS Criminal Investigation and our international partners led the largest and most impactful takedown to date—seizing over $200 million in assets, removing deadly drugs and weapons from circulation, and holding more than 270 individuals accountable. This critical strike against dark web networks fueling the fentanyl crisis marks a proud moment in our ongoing effort to protect communities worldwide.”

“This record-breaking operation sends a clear message to every trafficker hiding behind a screen—your anonymity ends where our global reach begins,” said Acting Director Todd Lyons of U.S. Immigration and Customs Enforcement (ICE). “Thanks to the unwavering efforts by ICE’s Homeland Security Investigations (HSI), Europol and our international partners, we’re cracking the code of the so-called ‘safe spaces’ for cybercriminals—they are in our sights and we’re not backing down.”

“Operation RapTor shows what’s possible when the U.S. Postal Inspection Service and our partners around the world stand united,” said Chief Postal Inspector Gary Barksdale of the United States Postal Inspection Service. “No matter where criminals hide, we will find them, dismantle their operations, and bring them to justice. This operation was about protecting innocent people from predatory criminals who profit from violence, addiction, and fear. Our commitment is unwavering.”

“The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences,” said Deputy Director Chad Menster of the Food and Drug Administration’s Office of Criminal Investigations (FDA OCI). “We will continue to monitor, investigate and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”

The impact of Operation RapTor can be attributed to the tireless work of U.S. and international law enforcement partners. For example:

On Dec. 16, 2024, Rui-Siang Lin pleaded guilty to charges brought by the U.S. Attorney’s Office for the Southern District of New York of narcotics conspiracy, money laundering, and conspiracy to sell adulterated and misbranded medication for owning and operating Incognito Market, one of the largest narcotics marketplaces on the internet.

According to court documents and statements made in court, Incognito Market was an online narcotics bazaar that started on the dark web in October 2020. Until it shut down in March 2024, Incognito Market sold more than $100 million of narcotics—including hundreds of kilograms of cocaine and methamphetamine. Incognito Market was available globally to anyone with internet access using the Tor web browser on the “dark web” or “darknet.” Incognito Market was designed to facilitate seamless narcotics transactions, incorporating many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is pictured below:

Figure 1: Incognito Market homepage

While concealing their identities with a unique username or “moniker,” users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamine, ketamine, and alprazolam, as well as misbranded prescription medication. An example of listings on Incognito market is below:

Figure 2: Listings for various drugs on the Incognito Market.

Listings included offerings of prescription medication that was falsely advertised as being authentic. For example, in November 2023, while operating in an undercover capacity on Incognito Market, a law enforcement agent purchased and received several tablets purported to be oxycodone. Testing revealed that these tablets were not oxycodone and were, in fact, fentanyl pills.

The FBI, HSI, DEA, FDA OCI, and the New York Police Department investigated the case.

In a second example, in January 2025, the U.S. Attorney’s Office for the Central District of California secured a 17-year sentence for Adan Ruiz, of Orange County, and a 15-year sentence for Omar Navia, of Los Angeles, for supplying fentanyl-laced pills to a drug trafficking ring that sold these drugs to more than 1,000 customers nationwide via the darknet. In imposing the sentences, U.S. District Judge David O. Carter called this case “the most sophisticated fentanyl distribution ring that this court has seen.”

Navia and Ruiz admitted in their plea agreements that, from at least August 2021 to December 2022, they supplied fentanyl-laced pills to Michael Ta, 26, of Westminster, and Rajiv Srinivasan, 38, of Houston, who used the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills, 20 pounds of methamphetamine, and other drugs directly to more than 1,000 customers in all 50 states, causing several fatal overdoses.

According to court documents and statements made in court, Srinivasan and Ta used the “redlightlabs” darknet account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs. Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.

The court record also shows that Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.

Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan. Prosecutors wrote in a sentencing memorandum, “The five victims of defendants’ crimes ranged in age from 19 to 51. They lived across the country, from California to Florida, Colorado to Arkansas. Each of the five victims leaves behind a family that has been forever and fundamentally changed by defendants’ actions. [Ta and Srinivasan] also victimized countless others as part of an epidemic of addiction and despair plaguing our district and our country.”

The FBI investigated this case, with substantial assistance from the U.S. Postal Inspection Service (USPIS), the DEA’s Fayetteville Resident Office, and the Northern Colorado Drug Task Force.

In a third example, in February 2024, the U.S. Attorney’s Office for the Eastern District of Virginia charged Joshua Vasquez, Joseph Vasquez, and Rafael Roman by criminal complaint with conspiracy to distribute 500 grams or more of methamphetamine. Joshua Vasquez, Joseph Vasquez, and Roman conspired to sell counterfeit Adderall containing methamphetamine on darknet markets such as Bohemia and Tor2Door. The defendants allegedly sold drugs on darknet marketplaces in exchange for cryptocurrency under the monikers “NuveoDelux,” “Mrjohnson,” and “AllStateRx.”

According to court documents and statements made in court, these three prolific darknet vendors were collectively responsible for fulfilling over 13,000 drug orders shipped throughout the United States, ranging in size from user quantities, e.g., 5 pills, to “reseller” quantities, e.g., 10,000 pills. Joshua and Joseph Vasquez collectively ran the NuveoDeluxe and AllStateRx accounts. A fourth co-conspirator, Gregory Castillo-Rosario, who was arrested in October 2024, ran the Mrjohnson account. Roman assisted his co-conspirators by pressing counterfeit Adderall pills, packaging them, and distributing drug orders into the mail using the U.S. Postal Service. The conspiracy also laundered funds associated with darknet drug proceeds.

While executing search warrants in New Jersey and New York, federal law enforcement officers seized more than $330,000, close to 80,000 counterfeit Adderall pills, one firearm, and two industrial pill press machines. Additionally, two vehicles and several pieces of property were seized during the search warrants. An additional 30 kilograms of suspected counterfeit Adderall pills were seized on May 2, 2024, in New York. Photographs of some of the seized items are below:

Figure 3: Counterfeit Adderall pills laced with methamphetamine stored in 5-gallon buckets

Figure 4: Bags ready to be shipped to customers nationwide.

Figure 5: Illegal pill press machines used by drug traffickers to make counterfeit pharmaceutical pills.

Figure 6: Trash bags full of counterfeit Adderall pills laced with methamphetamine.

Joshua Vasquez pleaded guilty on April 24, 2024, and was sentenced on July 25, 2024, to 12 years in prison. Joseph Vasquez pleaded guilty on April 15, 2024, and was sentenced on Aug. 8, 2024, to 10 years in prison. Roman pleaded guilty on May 30, 2024, and was sentenced on Nov. 14, 2024, to 10 years in prison. They all pleaded guilty to conspiracy to create a counterfeit substance and distribute 500 grams or more of a mixture and substance containing methamphetamine.

The FBI, FDA, and USPIS investigated this matter with significant contributions from DEA, HSI, the Ocean County Sheriff’s Office, the Howell Township Police Department, the Lakewood Township Police Department, the Orlando Police Department, the Orange County Sheriff’s Office, the Arlington County Police Department, and the New York Police Department.

In a fourth example, a San Fernando Valley man, Brian McDonald, 23, was sentenced to more than 20 years in federal prison in the Central District of California for using darknet marketplaces to sell hundreds of thousands of dollars’ worth of fentanyl-laced pills and cocaine to buyers nationwide. He admitted in court documents to causing one fatal fentanyl overdose.

From at least April 2021 until May 2023, McDonald and others conspired to sell fentanyl and cocaine via multiple darknet marketplaces. McDonald operated under the monikers “Malachai Johnson,” “SouthSideOxy,” and “JefeDeMichoacan.” McDonald created, monitored, and maintained the darknet vendor profiles, including by updating drug listings and shipment options, tracking drug orders, and offloading Monero cryptocurrency received as drug deal payments into cryptocurrency wallets that McDonald controlled.

McDonald recruited and hired accomplices to help package and ship the narcotics they sold on the darknet. McDonald directed and helped these accomplices package and ship the narcotics. McDonald purchased bulk quantities of fentanyl and cocaine and then directed others to complete hundreds of drug sales involving large quantities of both fentanyl and cocaine.

The FBI and DEA investigated this matter.

Operation RapTor involves law enforcement actions taken by JCODE member agencies, including the DEA, FBI, FDA OCI, HSI, IRS-CI, and USPIS. Credible reporting from the referenced agencies, in addition to contributions from ATF, Army Criminal Investigation Division, Customs and Border Protection, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and OFAC, and Naval Criminal Investigative Service, enabled domestic law enforcement actions in support of Operation RapTor. State, local, and other federal agencies also contributed to Operation RapTor investigations through task force participation and regional partnerships, as well as the multi-agency Special Operations Division.

The investigations leading to Operation RapTor were significantly aided by support and coordination from the Criminal Division’s Narcotic and Dangerous Drug Section and Computer Crime and Intellectual Property Section, with valuable assistance from the Criminal Division’s Money Laundering and Asset Recovery Section, Fraud Section, and Office of International Affairs.

Key international partners include Europol; Eurojust; Austria’s Criminal Intelligence Service with various Provincial Criminal Police Departments (Bundeskriminalamt und Landeskriminalämter); Brazil’s Civil Police of the State of Pará (Polícia Civil do Estado do Pará) and Civil Police of the State of São Paulo (Polícia Civil do Estado do São Paulo); France’s French Customs (Douane), National Gendarmerie (Gendarmerie Nationale); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Prosecutor’s Office in Cologne – Central Cybercrime Contact Point (Staatsanwaltschaft Köln, Zentral- und Ansprechstelle Cybercrime), Central Criminal Investigation in Oldenburg (Zentrale Kriminalinspektion Oldenburg) various police departments (Dienststellen der Länderpolizeien), and German Customs Investigation (Zollfahndungsämter); the Netherlands’ Team High Tech Crime (National Investigations and Special Operations (NIS) and Post Interventie Team (PIT), National Intelligence, Expertise and Operational Support (NIEO); Spain’s National Police (Policía Nacional); South Korea’s Seoul Central District Prosecutors’ Office – Darknet Investigations Unit; Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA), National Police Chiefs’ Council (NPCC).

Federal investigations spanned the United States, and 26 United States Attorneys’ Offices are prosecuting cases, including the Central District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the Middle District of Florida, the Southern District of Florida, the Middle District of Georgia, the District of Hawaii, the Northern District of Illinois, the Southern District of Indiana, the Eastern District of Kentucky, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the District of New Jersey, the Southern District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the Northern District of Oklahoma, the Eastern District of Pennsylvania, the Eastern District of Virginia, and the Western District of Washington.

The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

May 27, 2025
MIL-OSI Security: Texas Doctor Who Falsely Diagnosed Patients Sentenced to 10 Years’ Imprisonment in Connection with $118 Million in Fraudulent Health Care Claims

Source: Federal Bureau of Investigation (FBI) State Crime News

A Texas rheumatologist was sentenced to 10 years in prison and three years of supervised release for perpetrating a health care fraud scheme involving over $118 million in false claims and the payment of over $28 million by insurers as a result of him falsely diagnosing patients with chronic illnesses to bill for tests and treatments that the patients did not need. Jorge Zamora-Quezada M.D., 68, of Mission, also falsified patient records to support the false diagnoses after receiving a federal grand jury subpoena. Following a 25-day trial, Zamora-Quezada was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud, and one count of conspiracy to obstruct justice. In addition to his prison term, Zamora-Quezada was ordered to forfeit $28,245,454, including 13 real estate properties, a jet, and a Maserati GranTurismo.

According to the evidence presented at trial, Zamora-Quezada falsely diagnosed his patients with rheumatoid arthritis and administered toxic medications in order to defraud Medicare, Medicaid, TRICARE, and Blue Cross Blue Shield. The fraudulent diagnoses made the defendant’s patients believe that they had a life-long, incurable condition that required regular treatment at his offices. After falsely diagnosing his patients, Zamora-Quezada administered unnecessary treatments and ordered unnecessary testing on them, including a variety of injections, infusions, x-rays, MRIs, and other procedures—all with potentially harmful and even deadly side effects. To receive payment for these expensive services, Zamora-Quezada fabricated medical records and lied about the patients’ condition to insurers.

“Dr. Zamora-Quezada funded his luxurious lifestyle for two decades by traumatizing his patients, abusing his employees, lying to insurers, and stealing taxpayer money,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “His depraved conduct represents a profound betrayal of trust toward vulnerable patients who depend on care and integrity from their doctors. Today’s sentence is not just a punishment—it’s a warning. Medical professionals who harm Americans for personal enrichment will be aggressively pursued and held accountable to protect our citizens and the public fisc.”

“Through the false diagnoses and excessive false billing, Dr. Zamora-Quezada abused both patient trust and public resources,” said Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “It is imperative to investigate and address this form of fraud — not only to protect vulnerable individuals from harm but to uphold the integrity of the federal health care system and safeguard the use of public funds.”

“The FBI is dedicated to working with all of our partners to address health care fraud,” said Special Agent in Charge Aaron Tapp of the FBI’s San Antonio Field Office. “This case was not only a concern to us because of the financial loss — the physical and emotional harm suffered by the patients and their families was alarming and profound. We hope this significant sentence will help bring closure to the many victims in this case.”

Evidence at trial established that Dr. Zamora-Quezada falsely diagnosed patients in order to defraud insurers and enrich himself. Other rheumatologists in the Rio Grande Valley testified at trial that they saw hundreds of patients previously diagnosed with rheumatoid arthritis by Zamora-Quezada who did not have the condition, prompting one physician to explain that for “most” it was “obvious that the patient did not have rheumatoid arthritis.” Zamora-Quezada’s false diagnoses and powerful medications caused debilitating side effects on his patients, including strokes, necrosis of the jawbone, hair loss, liver damage, and pain so severe that basic tasks of everyday life, such as bathing, cooking, and driving, became difficult. As one patient testified, “Constantly being in bed and being unable to get up from bed alone, and being pumped with medication, I didn’t feel like my life had any meaning.” One mother described how she felt that her child served as a “lab rat,” and others described abandoning plans for college or feeling like they were “living a life in the body of an elderly person.”

Former employees detailed how Zamora-Quezada imposed strict quotas for procedures, leading to a climate of fear. Zamora-Quezada referred to himself as the “eminencia” — or eminence, threw a paperweight at an employee who failed to generate enough unnecessary procedures, hired employees he could manipulate because they were on J-1 visas and their immigration status could be jeopardized if they lost their jobs, and fired those who challenged him. Testimony also revealed Zamora-Quezada’s obstruction of insurer audits by fabricating missing patient files, including by taking ultrasounds of employees and using those images as documentation in the patient records. Testimony at trial established that Zamora-Quezada told employees to “aparecer” the missing records — “to make them appear.” Former employees also recounted being sent to a dilapidated barn to attempt to retrieve records. There, files were saturated with feces and urine, rodents, and termites that infested not only the records but also the structure.

Zamora-Quezada’s patient file storage facility

Zamora-Quezada used proceeds from his crimes to fund a lavish lifestyle, replete with real estate properties across the country and in Mexico, a jet, and a Maserati.

One of Zamora-Quezada’s luxury properties

Zamora-Quezada’s jet

FBI, HHS-OIG, Texas HHS-OIG, and the Texas Medicaid Fraud Control Unit investigated the case, with assistance from the Defense Criminal Investigative Service.

Principal Assistant Chief Jacob Foster and Assistant Chiefs Rebecca Yuan and Emily Gurskis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura Garcia for the Southern District of Texas prosecuted the case. Assistant U.S. Attorney Kristine Rollinson handled asset forfeiture. Fraud Section Assistant Chief Kevin Lowell initially handled the prosecution. The prosecution team thanks the Fraud Section’s Data Analytics Team, whose work initiated the investigation, Victim Witness Specialist Olga De La Rosa of the U.S. Attorney’s Office for the Southern District of Texas, and the Texas Department of Insurance.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Matt Jukes takes on role as Deputy Commissioner

Source: United Kingdom London Metropolitan Police

Matt Jukes has been confirmed as the Met’s new permanent Deputy Commissioner.

Assistant Commissioner Jukes is currently acting in the role since the retirement of Dame Lynne Owens earlier this month.

He will now formally step into the substantive role of Deputy Commissioner on Monday, 26 May.

Acting Deputy Commissioner Jukes said: “I am honoured to be appointed as Deputy Commissioner. I’ve had the privilege of serving communities across the UK throughout my career, including here in London since 2020.

“I have seen the incredible difference local policing can make to communities, and in recent years, the progress we’ve made in ensuring the Met is an organisation our people and London can be proud of. I’ve seen first-hand the efforts of tens of thousands of dedicated officers and staff, all working day and night to continue building the public’s confidence in us.

“We have much more still to do, but I am looking forward to building on the work of my brave colleagues across the Met and building on the legacy of my predecessor Dame Lynne, who was pivotal in driving forward our mission of reform.”

Commissioner Sir Mark Rowley said: “I am delighted Matt has been formally appointed as Deputy Commissioner.

“He is an exceptional leader with a wealth of experience from his time across South Yorkshire, South Wales and of course here in the Met as head of National Counter Terrorism Policing.

“He has lived the realities of neighbourhood policing right through to some of the most complex counter-terror issues we’ve faced in decades. He has a proven track record of reducing crime and increasing confidence in communities right across the UK. His skills and experience will be pivotal in our ongoing work to reform our service to London.

“Matt is held in incredibly high esteem by all those who have already worked alongside him. I look forward to seeing how he shapes this role and continues to build on the legacy left by Dame Lynne.”

The Mayor of London, Sadiq Khan, said: “I know how determined Matt Jukes is to help deliver a New Met for London, build on the progress we have achieved tackling crime in the capital and improve the confidence and trust London’s communities have in the police.

“His experience as an officer, detective and across a variety of senior roles will be invaluable as the Met continues to reform, modernise and improve the service it delivers. I’m looking forward to working with him and keeping the momentum of change going to deliver a safer London for all.”

Minister for Policing and Crime Prevention Dame Diana Johnson said: “The role of Deputy Commissioner is one of the most demanding and important in policing, so I am delighted that Matt has been appointed to take on that challenge.

“I also want to thank Matt for his vision and leadership as head of CT Policing since 2021.

“Matt’s experience, leadership and dedication to duty, which he has demonstrated throughout his career, proves he is the right person to help lead the charge in reducing crime, restoring confidence in policing and making our streets safer.

“His skills, track record of delivery and understanding of what’s needed to protect the public and keep communities safe, will be indispensable when it comes to policing the capital.”

After Dame Lynne announced her intention to retire in February, a process to recruit her successor was launched. That process concluded, with AC Jukes recommended as the successful candidate.

As is standard procedure, Home Secretary and Royal Household approval of that recommendation was required and has now been received.

Bio

Deputy Commissioner Jukes joined policing in 1995 as a constable with South Yorkshire Police.

From patrolling Sheffield’s East End, he worked as a detective, and in a variety of other roles, working his way up to the position of Chief Superintendent, Borough Commander.

He joined South Wales Police in 2010 as an Assistant Chief Constable leading on Specialist Crime and served as Deputy Chief Constable before being appointed Chief Constable in January 2018. He was awarded the Queen’s Policing Medal in that year’s Honours.

He held the post until November 2020 when he joined the Met as Assistant Commissioner, leading and overseeing transformation programmes, moving to the post of Head of UK Counter Terrorism Policing and the Met’s Assistant Commissioner for Specialist Operations (ACSO) in July 2021. This continued a longstanding focus on intelligence and security, that began with a first role in counter terrorism in 2001 and saw him perform the role of counter-terrorism Commander in a number of significant operations.

As ACSO and Head of CTP, his responsibilities included countering threats from domestic and international terrorism and the protection of the Royal Family, Ministers and Parliament. He oversaw the CTP investigation and response to the murder of Sir David Amess MP and contributed to security at the funeral of HM The Queen and HM The King’s Coronation. Most recently, he led responses to the recent conflicts in Ukraine and the Middle East.

As the national lead on security policing, he oversaw a four-fold increase in operations emanating from espionage, foreign interference and war crimes over almost four years.

This 30-year career has been split between periods in specialist areas of policing, and others at the heart of local policing, delivering for communities and supporting frontline colleagues, including a focus on their wellbeing. He is a former Chair, and now Vice Chair, of Police Sport UK, and a Patron of the Police Roll of Honour Trust.

He became acting Deputy Commissioner in May 2025.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Law Enforcement Seize Record Amounts of Illegal Drugs, Firearms, and Drug Trafficking Proceeds in International Operation Against Darknet Trafficking of Fentanyl and Opioids; 270 Arrested Across Four Continents

Source: United States Attorneys General 13

WASHINGTON — Today, the Attorney General and the Department of Justice’s Joint Criminal Opioid and Darknet Enforcement (JCODE) team, and international law enforcement partners announced the results of Operation RapTor, including the arrests of 270 dark web vendors, buyers, and administrators in Austria, Brazil, France, Germany, the Netherlands, South Korea, Spain, Switzerland, the United Kingdom, and the United States. Operation RapTor resulted in the highest number of seizures of any JCODE operation, including more than $200 million in currency and digital assets, over two metric tons of drugs, 144 kilograms of fentanyl or fentanyl-laced narcotics, and over 180 firearms.

Operation RapTor was a global, coordinated effort by law enforcement in the United States, Europe, South America, and Asia to disrupt fentanyl and opioid trafficking, as well as the sales of other illicit goods and services, on the darknet, or dark web. Operation RapTor builds on the successes of prior years’ operations and takedowns of marketplaces, which resulted in the seizure of darknet infrastructure from Nemesis, Tor2Door, Bohemia, and Kingdom Markets, providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, reflected in the statistics announced today. In furtherance of Operation RapTor and in its first action as a JCODE member agency, the Office of Foreign Assets Control (OFAC) additionally sanctioned Iranian national Behrouz Parsarad for his role as the founder and operator of Nemesis Market following seizure of the market. Parsarad was also indicted by a federal grand jury on drug trafficking charges related to the illegal business he ran on the dark web.

“This historic international seizure of firearms, deadly drugs, and illegal funds will save lives,” said Attorney General Pam Bondi. “Criminals cannot hide behind computer screens or seek refuge on the dark web – this Justice Department will identify and eliminate threats to the American people regardless of where they originate.”

“By cowardly hiding online, these traffickers have wreaked havoc across our country and directly fueled the fentanyl crisis and gun violence impacting our American communities and neighborhoods. But the ease and accessibility of their crimes ends today,” said FBI Director Kash Patel. “The FBI could not do this work without our partners both at home and abroad, and the staggering success of this year’s record-breaking amount of fentanyl, guns, and drugs seized prove that our efforts are working. Anyone looking to anonymously harm our citizens through illicit darknet trafficking: your days of recklessness are numbered.”

“These predators who peddled poison on the dark web might have thought they are untouchable — hiding behind screens, pushing fentanyl, fueling overdoses, and cashing in on misery. However, Operation RapTor just proved them wrong,” said DEA Acting Administrator Robert Murphy. “DEA and our global partners reached across borders, across platforms, and across currencies to rip their networks apart. Let this stand as a warning: no mask, no marketplace, and no digital wallet can hide you from facing justice.”

“Operation RapTor shows that the dark web is not beyond the reach of law enforcement,” said Head of Europol’s European Cybercrime Centre, Edvardas Šileris. “Through close cooperation and intelligence sharing, officers across three continents identified and arrested suspects, sending a clear message to those who think they can hide in the shadows. Europol will continue working with our partners to make the internet safer for everyone.”

“This unprecedented operation is a testament to the power of global partnership and the unwavering dedication of our team,” said Chief Guy Ficco of IRS Criminal Investigation (IRS-CI). “Working through the JCODE initiative, IRS Criminal Investigation and our international partners led the largest and most impactful takedown to date—seizing over $200 million in assets, removing deadly drugs and weapons from circulation, and holding more than 270 individuals accountable. This critical strike against dark web networks fueling the fentanyl crisis marks a proud moment in our ongoing effort to protect communities worldwide.”

“This record-breaking operation sends a clear message to every trafficker hiding behind a screen—your anonymity ends where our global reach begins,” said Acting Director Todd Lyons of U.S. Immigration and Customs Enforcement (ICE). “Thanks to the unwavering efforts by ICE’s Homeland Security Investigations (HSI), Europol and our international partners, we’re cracking the code of the so-called ‘safe spaces’ for cybercriminals—they are in our sights and we’re not backing down.”

“Operation RapTor shows what’s possible when the U.S. Postal Inspection Service and our partners around the world stand united,” said Chief Postal Inspector Gary Barksdale of the United States Postal Inspection Service. “No matter where criminals hide, we will find them, dismantle their operations, and bring them to justice. This operation was about protecting innocent people from predatory criminals who profit from violence, addiction, and fear. Our commitment is unwavering.”

“The FDA is committed to continuing its work to disrupt and dismantle the illegal sales of drugs on the dark web, where such sales far too often have tragic consequences,” said Deputy Director Chad Menster of the Food and Drug Administration’s Office of Criminal Investigations (FDA OCI). “We will continue to monitor, investigate and bring to justice those who misuse the internet in a quest for profits with reckless disregard for the risk to public health and safety.”

The impact of Operation RapTor can be attributed to the tireless work of U.S. and international law enforcement partners. For example:

On Dec. 16, 2024, Rui-Siang Lin pleaded guilty to charges brought by the U.S. Attorney’s Office for the Southern District of New York of narcotics conspiracy, money laundering, and conspiracy to sell adulterated and misbranded medication for owning and operating Incognito Market, one of the largest narcotics marketplaces on the internet.

According to court documents and statements made in court, Incognito Market was an online narcotics bazaar that started on the dark web in October 2020. Until it shut down in March 2024, Incognito Market sold more than $100 million of narcotics—including hundreds of kilograms of cocaine and methamphetamine. Incognito Market was available globally to anyone with internet access using the Tor web browser on the “dark web” or “darknet.” Incognito Market was designed to facilitate seamless narcotics transactions, incorporating many features of legitimate e-commerce sites such as branding, advertising, and customer service. Upon visiting the site, users were met by a splash page and graphic interface, which is pictured below:

Figure 1: Incognito Market homepage

While concealing their identities with a unique username or “moniker,” users were able to search thousands of listings for narcotics of their choice. Incognito Market sold illegal narcotics including heroin, cocaine, LSD, MDMA, oxycodone, methamphetamine, ketamine, and alprazolam, as well as misbranded prescription medication. An example of listings on Incognito market is below:

Figure 2: Listings for various drugs on the Incognito Market.

Listings included offerings of prescription medication that was falsely advertised as being authentic. For example, in November 2023, while operating in an undercover capacity on Incognito Market, a law enforcement agent purchased and received several tablets purported to be oxycodone. Testing revealed that these tablets were not oxycodone and were, in fact, fentanyl pills.

The FBI, HSI, DEA, FDA OCI, and the New York Police Department investigated the case.

In a second example, in January 2025, the U.S. Attorney’s Office for the Central District of California secured a 17-year sentence for Adan Ruiz, of Orange County, and a 15-year sentence for Omar Navia, of Los Angeles, for supplying fentanyl-laced pills to a drug trafficking ring that sold these drugs to more than 1,000 customers nationwide via the darknet. In imposing the sentences, U.S. District Judge David O. Carter called this case “the most sophisticated fentanyl distribution ring that this court has seen.”

Navia and Ruiz admitted in their plea agreements that, from at least August 2021 to December 2022, they supplied fentanyl-laced pills to Michael Ta, 26, of Westminster, and Rajiv Srinivasan, 38, of Houston, who used the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills, 20 pounds of methamphetamine, and other drugs directly to more than 1,000 customers in all 50 states, causing several fatal overdoses.

According to court documents and statements made in court, Srinivasan and Ta used the “redlightlabs” darknet account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs. Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.

The court record also shows that Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.

Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan. Prosecutors wrote in a sentencing memorandum, “The five victims of defendants’ crimes ranged in age from 19 to 51. They lived across the country, from California to Florida, Colorado to Arkansas. Each of the five victims leaves behind a family that has been forever and fundamentally changed by defendants’ actions. [Ta and Srinivasan] also victimized countless others as part of an epidemic of addiction and despair plaguing our district and our country.”

The FBI investigated this case, with substantial assistance from the U.S. Postal Inspection Service (USPIS), the DEA’s Fayetteville Resident Office, and the Northern Colorado Drug Task Force.

In a third example, in February 2024, the U.S. Attorney’s Office for the Eastern District of Virginia charged Joshua Vasquez, Joseph Vasquez, and Rafael Roman by criminal complaint with conspiracy to distribute 500 grams or more of methamphetamine. Joshua Vasquez, Joseph Vasquez, and Roman conspired to sell counterfeit Adderall containing methamphetamine on darknet markets such as Bohemia and Tor2Door. The defendants allegedly sold drugs on darknet marketplaces in exchange for cryptocurrency under the monikers “NuveoDelux,” “Mrjohnson,” and “AllStateRx.”

According to court documents and statements made in court, these three prolific darknet vendors were collectively responsible for fulfilling over 13,000 drug orders shipped throughout the United States, ranging in size from user quantities, e.g., 5 pills, to “reseller” quantities, e.g., 10,000 pills. Joshua and Joseph Vasquez collectively ran the NuveoDeluxe and AllStateRx accounts. A fourth co-conspirator, Gregory Castillo-Rosario, who was arrested in October 2024, ran the Mrjohnson account. Roman assisted his co-conspirators by pressing counterfeit Adderall pills, packaging them, and distributing drug orders into the mail using the U.S. Postal Service. The conspiracy also laundered funds associated with darknet drug proceeds.

While executing search warrants in New Jersey and New York, federal law enforcement officers seized more than $330,000, close to 80,000 counterfeit Adderall pills, one firearm, and two industrial pill press machines. Additionally, two vehicles and several pieces of property were seized during the search warrants. An additional 30 kilograms of suspected counterfeit Adderall pills were seized on May 2, 2024, in New York. Photographs of some of the seized items are below:

Figure 3: Counterfeit Adderall pills laced with methamphetamine stored in 5-gallon buckets

Figure 4: Bags ready to be shipped to customers nationwide.

Figure 5: Illegal pill press machines used by drug traffickers to make counterfeit pharmaceutical pills.

Figure 6: Trash bags full of counterfeit Adderall pills laced with methamphetamine.

Joshua Vasquez pleaded guilty on April 24, 2024, and was sentenced on July 25, 2024, to 12 years in prison. Joseph Vasquez pleaded guilty on April 15, 2024, and was sentenced on Aug. 8, 2024, to 10 years in prison. Roman pleaded guilty on May 30, 2024, and was sentenced on Nov. 14, 2024, to 10 years in prison. They all pleaded guilty to conspiracy to create a counterfeit substance and distribute 500 grams or more of a mixture and substance containing methamphetamine.

The FBI, FDA, and USPIS investigated this matter with significant contributions from DEA, HSI, the Ocean County Sheriff’s Office, the Howell Township Police Department, the Lakewood Township Police Department, the Orlando Police Department, the Orange County Sheriff’s Office, the Arlington County Police Department, and the New York Police Department.

In a fourth example, a San Fernando Valley man, Brian McDonald, 23, was sentenced to more than 20 years in federal prison in the Central District of California for using darknet marketplaces to sell hundreds of thousands of dollars’ worth of fentanyl-laced pills and cocaine to buyers nationwide. He admitted in court documents to causing one fatal fentanyl overdose.

From at least April 2021 until May 2023, McDonald and others conspired to sell fentanyl and cocaine via multiple darknet marketplaces. McDonald operated under the monikers “Malachai Johnson,” “SouthSideOxy,” and “JefeDeMichoacan.” McDonald created, monitored, and maintained the darknet vendor profiles, including by updating drug listings and shipment options, tracking drug orders, and offloading Monero cryptocurrency received as drug deal payments into cryptocurrency wallets that McDonald controlled.

McDonald recruited and hired accomplices to help package and ship the narcotics they sold on the darknet. McDonald directed and helped these accomplices package and ship the narcotics. McDonald purchased bulk quantities of fentanyl and cocaine and then directed others to complete hundreds of drug sales involving large quantities of both fentanyl and cocaine.

The FBI and DEA investigated this matter.

Operation RapTor involves law enforcement actions taken by JCODE member agencies, including the DEA, FBI, FDA OCI, HSI, IRS-CI, and USPIS. Credible reporting from the referenced agencies, in addition to contributions from ATF, Army Criminal Investigation Division, Customs and Border Protection, the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and OFAC, and Naval Criminal Investigative Service, enabled domestic law enforcement actions in support of Operation RapTor. State, local, and other federal agencies also contributed to Operation RapTor investigations through task force participation and regional partnerships, as well as the multi-agency Special Operations Division.

The investigations leading to Operation RapTor were significantly aided by support and coordination from the Criminal Division’s Narcotic and Dangerous Drug Section and Computer Crime and Intellectual Property Section, with valuable assistance from the Criminal Division’s Money Laundering and Asset Recovery Section, Fraud Section, and Office of International Affairs.

Key international partners include Europol; Eurojust; Austria’s Criminal Intelligence Service with various Provincial Criminal Police Departments (Bundeskriminalamt und Landeskriminalämter); Brazil’s Civil Police of the State of Pará (Polícia Civil do Estado do Pará) and Civil Police of the State of São Paulo (Polícia Civil do Estado do São Paulo); France’s French Customs (Douane), National Gendarmerie (Gendarmerie Nationale); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Prosecutor’s Office in Cologne – Central Cybercrime Contact Point (Staatsanwaltschaft Köln, Zentral- und Ansprechstelle Cybercrime), Central Criminal Investigation in Oldenburg (Zentrale Kriminalinspektion Oldenburg) various police departments (Dienststellen der Länderpolizeien), and German Customs Investigation (Zollfahndungsämter); the Netherlands’ Team High Tech Crime (National Investigations and Special Operations (NIS) and Post Interventie Team (PIT), National Intelligence, Expertise and Operational Support (NIEO); Spain’s National Police (Policía Nacional); South Korea’s Seoul Central District Prosecutors’ Office – Darknet Investigations Unit; Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA), National Police Chiefs’ Council (NPCC).

Federal investigations spanned the United States, and 26 United States Attorneys’ Offices are prosecuting cases, including the Central District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the Middle District of Florida, the Southern District of Florida, the Middle District of Georgia, the District of Hawaii, the Northern District of Illinois, the Southern District of Indiana, the Eastern District of Kentucky, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the District of New Jersey, the Southern District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the Northern District of Oklahoma, the Eastern District of Pennsylvania, the Eastern District of Virginia, and the Western District of Washington.

The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Middle Sackville — RCMP investigating suspicious incident in Middle Sackville

Source: Royal Canadian Mounted Police

RCMP Halifax Regional Detachment is asking for the public’s help in identifying a person of interest following a suspicious incident that occurred in Middle Sackville.

On May 20, RCMP officers received a report of a suspicious incident that had occurred the previous day at approximately 1 p.m. on Rafting Dr. Investigators learned that a man wearing a ski mask and ski goggles had been taking photos of children playing at the playground.

The man fled on foot when one of the children asked him what he was doing.

The person of interest is described as a white male, approximately 5-foot-10. At the time of the incident, he was wearing a black hoodie, blue jeans and white and blue sneakers.

As the investigation continues, officers are looking to speak with the man involved.

Anyone with information about this incident, or with security camera footage of the area, is asked to contact police at 902-490-5020. To remain anonymous, call Nova Scotia Crime Stoppers, toll-free, at 1-800-222-TIPS (8477), submit a secure web tip at www.crimestoppers.ns.ca, or use the P3 Tips app.

Members of the public are encouraged to report suspicious activity immediately. In an emergency, call 911.

File # 25-70607

MIL Security OSI –

May 27, 2025
MIL-OSI United Kingdom: This Council should use the tools at its disposal to press parties to conflict to protect civilians: UK statement at the UN Security Council

Source: United Kingdom – Government Statements

Speech

This Council should use the tools at its disposal to press parties to conflict to protect civilians: UK statement at the UN Security Council

Statement by Ambassador James Kariuki, UK Deputy Permanent Representative to the UN, at the UN Security Council meeting on the protection of civilians in armed conflict.

The Secretary-General’s report is a chilling reflection of our collective failure to protect civilians around the world.

Famine has returned to Sudan. Thousands of women and children have been killed in Gaza, and hostages are still held by Hamas following the appalling October 7 attacks. Civilian infrastructure has been further damaged in Ukraine.

It does not need to be this way.

This Council, and the international community, have the tools to protect civilians; we have an urgent duty to use them.

President, I will focus on three points.

First, in recent days, we have heard powerful accounts from senior UN officials of the gaps between the obligations of parties to conflict under international humanitarian law and their implementation.

These gaps are where harms to civilians arise every day in conflicts on this Council’s agenda. But they are also where dangerous precedents are set, which risk fostering impunity.

This Council should use the tools at its disposal to press all parties to conflict to comply with their obligations under International Humanitarian Law and applicable International Human Rights Law.

Indiscriminate attacks and direct attacks on civilians and civilian infrastructure need to stop.

There must also be an end to impunity.

The United Kingdom will continue to stand behind the International Criminal Court as the court of last resort for the most serious crimes of international concern.

Second, as we have heard, 2024 was the deadliest year on record for humanitarian workers. We call for the full implementation of resolution 2730 on the protection of humanitarian personnel, premises and assets. And we underscore the vital importance of ensuring safe and unhindered humanitarian access.

Third, we need to ensure the UN can play its critical part in supporting the protection of civilians, especially through peace operations.

Peacekeepers must be properly trained and equipped to fulfil protection mandates, and those mandates must be respected by parties to conflict.

President, the United Kingdom is taking practical steps to advance the protection of civilians, including through ICRC’s Global IHL initiative.

And this month we published a practitioner’s handbook to support IHL compliance and better tackle conflict and hunger.

In conclusion, the UK remains fully committed to working with international partners, including in this Council, to uphold our shared obligations to the protection of civilians and to bring an end to impunity.

Updates to this page

Published 22 May 2025

MIL OSI United Kingdom –

May 27, 2025
MIL-OSI Security: Eight Defendants Charged with Federal Immigration Crimes
Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

HUNTSVILLE, Ala. – A federal grand jury in Huntsville has charged eight individuals with immigration crimes, announced U.S. Attorney Prim Escalona.

The following defendants were indicted for illegally reentering the United States after having previously been deported:
- Raul Alvarez-Lopez, 28, a citizen of Mexico;
- Jose Faustino-Climaco, 29, a citizen of Mexico;
- Nazario Vargas-Peres, 27, a citizen of Guatemala;
- Eberardo Yovany Peralta-Cazales, 33, a citizen of Mexico;
- Amilcar Pablo-Cinto, 35, a citizen of Guatemala;
Stanley Amalemba Ambeyi, 38, a citizen of Kenya, was charged with being an alien in possession of a firearm.

Pedro Pedro-Mateo, 30, a citizen of Guatemala, was charged with fraud and misuse of a visa, permits, and other documents, and for failure to maintain personal possession of alien registration.

Efren Gimenez-Gimenez, 44, a citizen of Mexico, was charged with illegally reentering the United States after having previously been deported and for failure to register.

These cases are part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN). Operation Take Back America partners Homeland Security Investigations – Atlanta and Bureau of Alcohol, Tobacco, Firearms, and Explosives Nashville Field Division investigated these cases.

An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.

MIL Security OSI –
May 27, 2025
MIL-OSI USA: Dingell’s TAKE IT DOWN Act Signed into Law
Source: United States House of Representatives – Congresswoman Debbie Dingell (12th District of Michigan)

Congresswoman Debbie Dingell’s (MI-06) bipartisan TAKE IT DOWN Act, which protects victims of non-consensual intimate imagery, was today signed into law by President Donald Trump. The TAKE IT DOWN Act protects victims of real and deepfake ‘revenge pornography’ by criminalizing the publication of these harmful images, in addition to requiring websites to quickly remove them. The rising popularity of AI requires decisive federal legal protections that will empower victims of these heinous crimes, most of whom are women and girls.

The bill was also led by Reps. María Elvira Salazar (R-FL), Madeleine Dean (D-PA), Vern Buchanan (R-FL), August Pfluger (R-TX), and Stacey Plaskett (D-VI), and Senators Amy Klobuchar (D-MN) and Ted Cruz (R-TX).

“The increasing use of artificial intelligence to create and circulate deep fake pornography threatens the well-being and security of its victims, primarily women. Perpetrators have used deep fake pornography as a tool to harass, humiliate, and intimidate women and children online, and we need to work together to protect against these threats. This is a serious and growing issue that requires urgent action, which is why I introduced the TAKE IT DOWN Act,” said Rep. Dingell. “This law will provide a critical remedy for victims to ensure these images are removed and that perpetrators are held accountable. As new technology emerges, so too does the potential for new forms of abuse. I’m grateful for my partners in the House and Senate who helped get this bill across the finish line and passed into law, and I will continue to work with everyone, on both sides of the aisle, to respond to emerging technological threats, and protect victims of sexual violence.”

The TAKE IT DOWN Act solves the problem of inconsistent, or non-existent, legislation protecting victims of deepfake pornographic images at the state level. While nearly all states have laws protecting their citizens from revenge porn, only 20 states have explicit laws covering deepfake non-consensual intimate imagery (NCII). Among those states, there is a high degree of variance in classification of crime, penalty, and even criminal prosecution. Victims also struggle to have images depicting them removed from websites in a timely manner, potentially contributing to more spread and re-traumatization.

In 2022, Congress passed legislation creating a civil cause of action for victims to sue individuals responsible for publishing NCII. However, bringing a civil action can be incredibly impractical. It is time-consuming, expensive, and may force victims to relive trauma. Further exacerbating the problem, it is not always clear who is responsible for publishing the NCII.

The TAKE IT Down Act addresses these issues while protecting lawful speech by:
- Criminalizing the publication of NCII or the threat to publish NCII in interstate commerce;
- Protecting good faith efforts to assist victims by permitting the good faith disclosure of NCII for the purpose of law enforcement or medical treatment;
- Requiring websites to take down NCII upon notice from the victims within 48 hours; and
- Requiring that computer-generated NCII meet a ‘reasonable person’ test for appearing to realistically depict an individual, so as to conform to current First Amendment jurisprudence.
MIL OSI USA News –
May 27, 2025
MIL-OSI Security: UPDATE: Man arrested following stabbing in Brent

Source: United Kingdom London Metropolitan Police

Detectives investigating the death of a 26-year-old man in Brent have made an arrest.

On Thursday, 22 May, officers arrested a man in his 20s, from Barnet, on suspicion of murder. He remains in custody.

Ali Faris Muhammad, who lived in Harrow, sadly died following an altercation in the early hours of Sunday, 18 May.

At 03:31hrs, police were called to reports of the incident in Kingsbury Road, NW9.

Ali was taken to hospital with a stab wound. Despite the best efforts of medical staff, he died.

His next of kin are being supported by specially trained officers.

An investigation is ongoing.

Detective Chief Inspector Allam Bhangoo, who is leading the investigation, said:

“Our thoughts are with Ali’s family and loved ones. They have asked for their privacy to be respected at this difficult time.

“Our team of detectives and forensic specialists are working at pace to establish the full circumstances that led to his tragic death. We urge anyone who witnessed the incident, or who has any information that could assist us, to come forward as soon as possible.

“We understand this incident may cause concern within the Kingsbury community, and we’re grateful for their continued patience and co-operation as we carry out our investigation.”

Anyone who can help is asked to call police on 101, quoting reference: 1052/18May. Information can also be provided anonymously to Crimestoppers on 0800 555 111.

Or please visit the Major Incident Police Portal (MIPP) – https://mipp.police.uk/operation/01MPS25X74-PO1

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Jefferson County man sentenced for possessing machinegun conversion device

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for possessing a machinegun in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

Aaron Charles Hill, 22, pleaded guilty to possession of a machinegun and was sentenced to 57 months in federal prison by U.S. District Judge Marcia A. Crone on May 21, 2025.

According to information presented in court, on July 15, 2024, law enforcement was dispatched to an apartment complex on Pinchback Road in Beaumont in reference to a disturbance with a firearm. The victim reported being chased by multiple armed persons trying to shoot him. Hill was apprehended attempting to leave the scene with two stolen pistols, one of which was equipped with an extended magazine and a machinegun conversion device, also referred to as a Glock switch. A Glock switch is a small device that can be attached to the rear of the slide of a handgun, converting a semi-automatic pistol into a fully automatic machinegun. Federal law defines a machinegun as a weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Matt Quinn.

###

MIL Security OSI –

May 27, 2025

MIL-OSI: Final Results

Source: GlobeNewswire (MIL-OSI)

Octopus Apollo VCT plc
Final Results

Octopus Apollo VCT plc today announces the final results for the year ended 31 January 2025.

Octopus Apollo VCT plc (‘Apollo’ or the ‘Company’) is a Venture Capital Trust (VCT) which aims to provide shareholders with attractive tax-free dividends and long-term capital growth by investing in a diverse portfolio of predominantly unquoted companies.

The Company is managed by Octopus Investments Limited (‘Octopus’ or the ‘Portfolio Manager’) via its investment team, Octopus Ventures.

HIGHLIGHTS

	Year to 31 January 2025	Year to 31 January 2024
Net assets (£’000)	£482,563	£390,294
Profit/(loss) after tax (£’000)	£24,110	£(435)
Net asset value (NAV) per share¹	50.5p	50.5p
Cumulative dividends paid since launch	90.0p	87.4p
Total value per share²	140.5p	137.9p
Dividends paid in the year	2.6p	2.7p
Dividend yield³	5.1%	5.1%
Dividend declared	1.3p	1.3p
Total return per share %⁴	5.1%	0.0%

NAV per share is calculated as net assets divided by total number of shares, as described in the glossary of terms.
Total value per share is calculated by adding together NAV per share and cumulative dividends paid since launch.
Dividend yield is calculated as dividends paid in the period, divided by the NAV per share at the beginning of the period.
Total return per share % is an alternative performance measure (APM) calculated as movement in NAV per share in the period plus dividends paid in the period, divided by the NAV per share at the beginning of the period, as described in the glossary of terms.

CHAIR’S STATEMENT

Highlights

Apollo’s latest fundraise: £75 million
Total return over five years: 45.3%
Dividends paid in 2025: 2.6p

Apollo’s total return for the year to 31 January 2025 was 5.1% with the net assets at the end of the period totalling £483 million.

Performance

I am pleased to present the annual results for Apollo for the year ended 31 January 2025. The NAV plus cumulative dividends per share at 31 January 2025 was 140.5p, an increase of 2.6p per share from 31 January 2024. During the year the NAV per share remained stable at 50.5p which represents, after adding back the 2.6p of dividends paid in the year, a total return for the year of 5.1% compared to 0% in the previous year. This outcome highlights the Company’s overall resilience and positive performance, despite the uncertain macro environment. I also note several exciting new investments have been made in the period, showing that the Company is successfully growing the overall size of the portfolio.

In the twelve months to 31 January 2025, we utilised £86.1 million of our cash resources, comprising £47.1 million in new and follow-on investments, £17.8 million in dividends (net of the Dividend Reinvestment Scheme (DRIS)), £8.6 million in management fees, £9.0 million in share buybacks, and £3.6 million in other running costs such as accounting and administration services and trail commissions. The cash and liquid resources balance of £95.7 million at 31 January 2025 represented 19.8% of net assets at that date, compared to £61.3 million, which represented 15.7% at 31 January 2024. Cash and liquid resources comprises cash at bank, money market funds (MMFs) and open ended investment companies (OEICs.)

Performance incentive fees
Apollo’s performance since 31 January 2024 has given rise to a performance fee being payable to Octopus of £6.1 million. The performance fee is calculated as 20% on all gains above the High-Water Mark, the highest total return as at previous year ends, of 137.9p as at 31 January 2024.

Dividends
It is your Board’s policy to maintain a regular dividend flow where possible to take advantage of the tax-free distributions a VCT can provide, and work towards the targeted 5% annual dividend yield policy.

I am pleased to confirm that the Board declared a second interim dividend of 1.3p per share in respect of the year ended 31 January 2025. This second interim dividend, in addition to the 1.3p per share interim dividend paid in December 2024 brings the total dividends declared to 2.6p per share in respect of the year ended 31 January 2025. The dividend was paid on 8 May 2025 to shareholders on the register at 22 April 2025. Since inception, we have paid a total of 91.3p in tax-free dividends per share, comprising 90.0p in previous distributions and an additional 1.3p paid in May. Considering dividends paid during 2024 (totalling 2.6p), the total dividend yield for the year is 5.1%, therefore meeting the Company’s target.

Apollo’s DRIS was introduced in November 2014 and currently 20.7% of shareholders take advantage of it as it is an attractive scheme for investors who would prefer to benefit from additional income tax relief on their reinvested dividend. I hope that shareholders will find this scheme beneficial. During the year to 31 January 2025, 10,800,892 shares were issued under the DRIS, equating to a reinvested amount of £5.3 million.

Fundraise and share buybacks
On 19 March 2024, the Company closed its offer to raise £50 million, which led the Board to increase the offer by a further £35 million. I am pleased to report that we successfully raised the full £85 million, closing the offer on 24 September 2024.

Following on from this, on 23 October 2024, the Company launched an offer to raise a further £50 million with an over-allotment facility for a further £25 million. I am delighted to report that we raised the full £75 million, so the offer closed fully subscribed on 21 March 2025. We would like to take this opportunity to welcome all new shareholders and thank all existing shareholders for their continued support.

Apollo has continued to buy back and cancel shares as required. Subject to shareholder approval of resolution 10 at the forthcoming Annual General Meeting (AGM), this facility will remain in place to provide liquidity to investors who may wish to sell their shares, subject to the Board’s discretion. Details of the share buybacks undertaken during the year can be found in the Directors’ Report.

Dividends, whether paid in cash or reinvested under the DRIS, and share buybacks are always at the discretion of the Board, are never guaranteed and may be reviewed when necessary.

VCT sunset clause
In November 2023, a ten-year extension was announced to the ‘sunset clause’ (a retirement date for the VCT scheme), meaning VCT tax reliefs will be available until 5 April 2035. This extension passed through Parliament in February 2024 and on 3 September 2024 His Majesty’s Treasury brought the extension into effect through The Finance Act 2024.

Board of Directors
Alex Hambro, having originally been appointed to the Board of Octopus Eclipse VCT 3 and 4 PLC in 2005, and then continuing as a Director following the merger with the Octopus Apollo VCTs in 2016, has decided to retire from the Board and will not be seeking re-election at the forthcoming AGM. It has been a pleasure to work with Alex, and I would like to take this opportunity to thank him on behalf of the Board and the shareholders for his substantial contribution over the years and help in guiding Apollo through its different phases of growth.

A new Non-Executive Director will be appointed at the completion of a structured recruitment process, which is already underway. All the other Directors have indicated their willingness to remain on the Board, and both Chris Powles and Gillian Elcock will be seeking re-election at the AGM.

Alternative Investment Fund (AIF)
As announced on 30 September 2024, the Company is now classified as a full scope AIF under the European Union’s AIF Managers Directive (AIFMD). This is due to the Company’s success and continued growth in assets under management (AUM). This regulation is in place to ensure greater transparency and risk mitigation to protect investors. It is an exciting milestone for the Company, and the Board is working closely with Octopus to ensure all reporting requirements and management protocols are adopted.

Portfolio Manager
As reported in the half-yearly unaudited report, Richard Court (previously Apollo’s Lead Fund Manager), took on a new role in the period as Head of VCTs and Enterprise Investment Schemes (EIS) at Octopus Ventures. Paul Davidson, a Partner in the Octopus Ventures team, has replaced Richard as Lead Fund Manager as of September 2024. Paul brings with him eight years of experience, focusing on Apollo, and has worked closely with the Board (alongside Richard) for the last three years. The Board would like to take this opportunity to reiterate its congratulations to Paul on his new role and to again thank Richard for his contribution to the Company and wish him well in his new position. In January 2025, Erin Platts was appointed as new Chief Executive Officer (CEO) of Octopus Ventures.

AGM
The AGM will be held on 10 July 2025 at 10am. Full details of the business to be conducted at the AGM are given in the Notice of the Meeting. We will have a Portfolio Manager’s update at the AGM, supported by a filmed update from the Portfolio Manager which will be available on the website at https://octopusinvestments.com/apollovct/.

Shareholders’ views are important, and the Board encourages shareholders to vote on the resolutions by using the proxy form, or electronically at www.investorcentre.co.uk/eproxy.

The Board has carefully considered the business to be approved at the AGM and recommends shareholders vote in favour of all the resolutions being proposed.

Outlook
I am pleased with the positive performance over the last six months, especially whilst the geo-political and economic landscape has been extremely challenging for portfolio companies to navigate. The uncertain conditions which have prevailed for the last couple of years have meant we have seen portfolio companies’ growth rates slow as trading conditions have become tougher and sales cycles have become more protracted. Companies have also looked to reduce their cash burn and focus on achieving profitability due to the scarcity and higher cost of capital. Some protection against these external factors has been offered by the contracted recurring revenue models that businesses within the portfolio have.

Over the past 12 months, we have observed a recovery in the Company’s investment rate, with twice as many new investments being completed when comparing 2025/24 to 2024/23.. Market data supports this trend, showing more deals completed in the Series B and onwards space in 2024 compared to the prior year¹. The investment team is experiencing an increase in deal flow, especially in the last six months of 2024, and the current pipeline of opportunities looks very promising. In addition to the higher deal cadence, we are pleased that the Company concluded three profitable realisations, compared to one in the prior year.

VCTs have long provided a compelling opportunity for UK investors to invest in businesses in a tax-efficient way, and we look forward to Apollo continuing to do so in the coming year. I would like to conclude by thanking both the Board and the Octopus team on behalf of all shareholders for their hard work.

Murray Steele
Chair

¹ https://carta.com/uk/en/data/vc-concentration-2024/

PORTFOLIO MANAGER’S REVIEW

At Octopus our focus is on managing your investments and providing open communication. Our annual and half-year updates are designed to keep you informed about the progress of your investment.

Investment strategy
In general, we invest in technology companies in the SaaS space that have recurring revenues from a diverse base of customers. We also seek to invest in companies that will provide an opportunity for Apollo to realise its investment typically within three to seven years.

Apollo total value growth
The total value has seen a significant increase over the five years from 119.8p to 140.5p at 31 January 2025. This increase in total value of 20.7p represents a 45.3% increase on the NAV of 45.7p as at 31 January 2020. Over the last five years, a total of more than £92.4 million has also been distributed back to shareholders in the form of tax-free dividends. This includes dividends reinvested as part of the DRIS.

Focus on performance
In the year to 31 January 2025, the NAV total return (NAV plus cumulative dividends) increased to 140.5p per share, giving a total return of 5.1% for the period. We are pleased with this modest uplift in total value, considering the challenging macroeconomic backdrop that our portfolio companies continued to navigate their way through over the last 12 months.

The performance over the five years to 31 January 2025 is shown below:

Year Ended	NAV	Dividends paid in year	Cumulative dividends	NAV + cumulative dividends	Total return %
31 January 2021	49.2p	2.3p	76.4p	125.6p	12.7%
31 January 2022	50.2p	5.7p	82.1p	132.3p	13.6%
31 January 2023	53.2p	2.6p	84.7p	137.9p	11.2%
31 January 2024	50.5p	2.7p	87.4p	137.9p	0.0%
31 January 2025	50.5p	2.6p	90.0p	140.5p	5.1%

Over the year, including disposals, there have been valuation increases across 29 portfolio companies, delivering a collective increase of £62 million. These increases reflect businesses which have successfully managed to grow revenues through the period. The strongest performers have generally exhibited improving profitability levels and revenue growth from their customer base and some of the top performers include Definely, Lodgify and TRI.

Conversely, 20 companies saw a decrease in valuation, collectively totalling £23 million. The businesses that saw the most significant reductions were Edge10, Synchtank and Peak Data. Growth has decelerated or in some cases revenues have declined in several portfolio companies and they have experienced decreases in their valuation. This has mainly been due to continued challenges in selling their software products into corporates who have experienced declining software expense budgets. There have also been some company-specific performance issues impacting a small number of companies in the portfolio.

In aggregate, this resulted in a net increase in portfolio company valuations of £39 million.

As part of ongoing liquidity management, Apollo regularly invests in and withdraws from MMFs in order to meet cash requirements. During the year, an additional £35.6 million (including interest) was invested in MMFs. Apollo also holds an investment in the Sequoia Economic Infrastructure Fund (SEQI), but no further investment was made in this fund during the year. These investments, in combination with the previously held investments in SEQI and the MMFs, took the total liquid investments as at 31 January 2025 to £91.5 million (including interest earned during the year on MMF deposits).

Disposals
Three profitable disposals were completed in the year. All of these investments were made prior to the change of investment focus to B2B SaaS businesses. The first exit was Dyscova Ltd (trading as Care & Independence (C&I)) which was acquired by GBUK Group, a company which designs, develops and distributes a portfolio of own and third-party branded acute-setting medical devices. Apollo first invested in C&I in 2016 and the exit resulted in Apollo achieving a 1.7x total return on its investment.

In September 2024, we were pleased to exit our holding in Countrywide Healthcare Supplies Holdings which was acquired by Personnel Hygiene Services Ltd, a hygiene services provider. The Company first invested in 2014, and the exit resulted in a 4.4x return on our initial investment, which is an excellent outcome.

In November 2024, nCino, a cloud-based software company that provides a platform for financial institutions to manage their business, acquired FullCircl. This acquisition will enhance nCino’s data and automation capabilities and allow it to expand its reach across the UK and Europe. Apollo made its initial investment in 2011, and the disposal resulted in a positive return for the Company.

One disposal during the year resulted in a partial loss on investment when Ryte GmbH, a marketing software technology platform, was acquired by Semrush Holdings Inc. Two companies were placed into administration in the year, Rotolight and Origami Energy. However, given the underlying holding valuations of these companies at the time of them going into administration, this did not have a material impact on the Company’s performance during the year. In aggregate, the investment cost of the companies placed into administration totalled £5.3 million. The underperformance of a portfolio company is always disappointing for Apollo and shareholders alike, but it is an inevitable feature of a venture capital portfolio, and we believe that successful exits will continue to outweigh any losses that could arise over the medium to long term of managing the portfolio. In the year, all disposals, including loan repayments, collectively returned £21.7 million in cash to Apollo, with the aggregate investment cost totalling £15.4 million.

	Year ended 31 January 2021	Year ended 31 January 2022	Year ended 31 January 2023	Year ended 31 January 2024	Year ended 31 January 2025	Total
Dividends paid in the year (£’000)	7,471	28,366¹	14,323	19,165	23,097	92,423
Disposal proceeds (£’000)	3,356	53,939	3,591	18,292	21,713	100,981

¹ Dividends paid to shareholders in the year ended 31 January 2022, including a special dividend of 3.1p per share.

As illustrated in the table above, we are pleased to have paid dividends from disposal proceeds over the past five years. The nature and timing of realising investments in a venture capital portfolio means it can affect our ability to do so. The Company also tries to maximise the outcome of the underlying holdings in an exit scenario which may not always align with a specific financial period.

New and follow-on investments
During the year, in-line with the broader private capital market, the Company demonstrated increasing new investment activity with Apollo investing £34.1 million into eight new opportunities (this includes second tranches of prior year new investments) as compared to four new investments completing in the prior year, totalling £15.2 million. For follow-on investments, we also saw an increased number with £13 million being invested into nine companies compared to seven follow-on investments completing in the year to 31 January 2024 adding up to £17.8 million invested.

Apollo’s new investments were in several exciting B2B software companies operating in a variety of end-markets:

Definely £2.8 million – An AI based legal tech software company supporting legal professionals in drafting and reviewing contractual documentation.
Switchee £2.5 million – A smart thermostat hardware and software provider focused on social housing and housing associations.
Cambri £4.2 million – An insights software platform that increases the quality, speed and cost effectiveness of producing research for new product launches.
Vyntelligence £4.5 million – A video intelligence and AI-driven data capture platform addressing inefficiencies in communication, reporting, and operational workflows within large infrastructure sectors.
Semble £2.5 million – An all-in-one platform for healthcare practices, enhancing patient care and streamlining operations.
bsport £8.4 million – An all-in-one software platform designed to manage boutique fitness and wellness studios.
Threatmark £6.1 million – A fraud prevention platform that uses real-time behavioural data to accurately identify payment fraud.

Q&A
How do we think about exiting our positions?
In traditional venture capital, a relatively small number of investments generate a significant proportion of the fund’s performance. However, for Apollo we try to construct a portfolio where the majority of the portfolio delivers the majority of the Company’s performance. The investment team takes an active role to try and optimise each specific situation. This means we have certain situations where companies may be held for longer if we think it is in the best interest of investors and the Company. Conversely, there are other situations where we may seek to exit earlier if market conditions permit. This means we maintain good portfolio management discipline to make sure realised proceeds materially contribute towards financing the Company’s ongoing running costs and meeting its dividends targets.

Private markets are illiquid, and as a result, the opportunities to sell all or some of our holding in a particular company can be unpredictable and governed by prevailing market conditions. We work closely with each portfolio company to understand and optimise its growth plans, with the goal of it maintaining flexibility over exit timing with the best interests of its shareholders in mind.

Wider macroeconomic conditions often influence exits as much as company specific factors. We also recognise that timing may not always be right to exit a position, and patience can allow for greater value growth. In such cases, we will continue to support portfolio companies, stay alert to opportunities, and help create them proactively through our network.

When do we start to think about exits?
We look to understand who the likely acquirers are from the outset and throughout the holding period. This can help inform important strategic decisions which contribute to value creation for shareholders. It is healthy for our portfolio companies to maintain relationships with key potential acquirers. These can often be commercial partners before becoming acquirers, and as such this activity can be highly productive.

We know not all companies will be as successful as we hoped at the time of the initial investment. We therefore seek to realise investments in companies which are underperforming and unlikely to generate a meaningful return. It can also help to find a “soft landing” for the company’s employees where the alternative may be placing the business into administration. However, to date this has only been in a very small minority of cases. Although generally not meaningful to investor returns, our behaviour in these scenarios is important.

How do we work with portfolio company boards?
We believe that it is important to be an active and supportive investor, so we typically appoint a Non-Executive Director or observer to the board of our portfolio companies. This allows us to offer ongoing support at the top level of the business and be involved in key decisions. It also gives us the opportunity to share any expertise and insights that we may have. Even very experienced founders may only sell a business once or twice in their career, whereas as investors, we may be involved in a few such transactions each year. We therefore look to support our portfolio companies by sharing the learnings and experience gathered across our team, all with the objective of obtaining the best outcome for our investors and shareholders in the Company overall.

Valuations
The table below illustrates the distribution of valuation methodologies used across Apollo’s B2B software investments (shown as a percentage of portfolio value and number of companies). B2B software accounts for 99% of Apollo’s total fixed asset investments. Methodologies include:
• ‘External price’ includes valuations based on funding rounds that typically completed by the year end or shortly after the year end, and exits of companies where terms have been agreed or proposed with an acquirer;
• ‘Multiples’ is predominantly used for valuations that are based on a multiple of revenue or EBITDA for portfolio companies; • ‘Scenario analysis’ is utilised where there is uncertainty around the potential outcomes available to a company, so a probability-weighted scenario analysis is considered.

Having arrived at a valuation of the portfolio company, to distribute the equity value within a portfolio company’s capital structure, taking into account the priority of financial instruments and the economic rights of debt and shares Apollo holds, the Current Value Method (CVM) is typically employed. This method allocates the equity value to different equity interests as if the business were sold on the reporting date, thereby reflecting the effects of the distribution waterfall.

Valuation methodology	By value	By number of companies
Multiples	77%	64%
Scenario analysis	18%	22%
External price	5%	8%
Write-off	–	6%

Case studies
definely
definely.com
LegalTech solution helping lawyers at every pre-execution stage of the contract lifecycle

40,000 active users

top 25 of the prestigious Deloitte UK Technology Fast50
75 employees located globally

Definely, founded in 2020, is a UK LegalTech company created to make legal documents easier to read, edit and understand. Definely was founded by two former Magic Circle lawyers, one of whom is registered blind. They set out to make legal documents more accessible to those with visual impairments and soon realised that their solution solved a problem faced by all lawyers, daily. Headquartered in London, it has over 75 employees located globally.

Fuelled by investment from Apollo, the company is now focused on adding to its existing base of 40,000 active users from the largest companies and law firms in the UK, US, Canada and Australia. In 2023, the company was named in the top 25 of the prestigious Deloitte UK Technology Fast50. Customers include AO Shearman, Slaughter and May, Dentons and Deloitte.

Cambri
cambri.io
Helping brands innovate iteratively to bring successful products to market fast

80% prediction accuracy for product launch success
68% year-over-year ARR growth

Cambri is an AI consumer insights and innovation platform which addresses a major industry problem – that of the high failure rate of product launches. Traditional market research, consumer insights, and prediction models are outdated, static, and notoriously inaccurate, typically delivering just 40% prediction accuracy. This means brands waste time and resources developing and launching products that consumers don’t need. By contrast, Cambri’s proprietary AI engine predicts the likelihood of a product’s success and provides actionable insights to help improve products before launch.

Cambri’s AI models are two to three times more accurate than traditional methods, enabling its customers to regularly achieve over 80% prediction accuracy for product launch success – contributing to Cambri’s 68% year-over-year annual recurring revenue (ARR) growth. Household food and beverage brands such as Coca-Cola and Nestle already utilise the platform.

Top 10 investments by value as at 31 January 2025
Here, we set out the cost and valuation of the top ten holdings, which account for over 57% of the value of the portfolio.

	Portfolio:	Investment cost (£’000)	Fair value of investment (£’000)
1	Natterbox	£18,990	£44,419
2	Lodgify	£12,611	£33,912
3	Ubisecure	£9,075	£25,811
4	Tri	£3,800	£22,070
5	Interact	£308	£20,658
6	Sova	£12,250	£19,266
7	FableData	£8,600	£15,780
8	ValueBlue	£10,071	£15,031
9	MentionMe	£15,000	£15,000
10	FuseUniversal	£8,000	£14,394

Top 10
1
N2JB Limited (trading as Natterbox)

Natterbox is a London-based provider of business-to-business cloud telephone services that are uniquely integrated into Customer Resource Management (CRM) software platforms, most notably Salesforce.

www.natterbox.com

Investment date:	March 2018
Equity held:	9.0% (2024: 8.5%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	£177,000 (2024: £150,000)
Last submitted accounts:	31 December 2023
Consolidated turnover:	£19,289,000 (2022: £17,092,000)
Consolidated loss before tax:	£(644,000) (2022: £(2,568,000))
Consolidated net assets:	£646,000 (2022: £1,022,000)

2
Codebay Solutions Limited (trading as Lodgify)
Lodgify provides a SaaS platform for vacation rental hosts and property managers to manage their business and process their bookings.

www.lodgify.com

Investment date:	September 2022
Equity held:	15.3% (2024: 11.9%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	n/a (2024: n/a)
Last submitted accounts:	31 December 2023
Consolidated turnover:	€14,508,000 (2022: €9,315,000)
Consolidated loss before tax:	€(7,462,000) (2022: €(6,239,000))
Consolidated net assets:	€10,390,000 (2022: €16,946,000)

Ubisecure Holdings Limited
Ubisecure is a provider of customer identity access management software.

www.ubisecure.com

Investment date:	May 2018
Equity held:	73.4% (2024: 33.3%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	£179,000 (2024: £197,000)
Last submitted accounts:	31 December 2023
Consolidated turnover:	£8,674,000 (2022: £6,923,000)
Consolidated loss before tax:	£(3,091,000) (2022: £(2,135,000)
Consolidated net liabilities:	£(3,053,000) (2022: £(287,000))

4
Triumph Holdings Limited (TRI)
TRI has developed a risk based quality management and monitoring platform for the life sciences industry

www.tritrials.com

Investment date:	October 2018
Equity held:	52.0% (2024: 52.0%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	£174,000 (2023: £171,000)
Last submitted accounts:	31 December 2023
Consolidated turnover:	Not available¹ (2022: Not available¹)
Consolidated profit before tax:	Not available¹ (2022: Not available¹)
Consolidated net assets:	£2,758,000 (2021: £2,875,000)

5
Hasgrove Limited
Hasgrove is the holding company for Interact, a SaaS business which provides an intranet product which focuses on the communication and collaboration requirements of large organisations.

www.interactsoftware.com

Investment date:	December 2016
Equity held:	5.9% (2024: 5.7%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	n/a (2024: n/a)
Last submitted accounts:	31 December 2023
Consolidated turnover:	£37,032,000 (2022: £29,388,000)
Consolidated profit before tax:	£9,907,000 (2022: £8,099,000)
Consolidated net assets:	£13,344,000 (2022: £13,136,000)

6
Sova Assessment Limited
Sova Assessment is a UK based end-to-end digital candidate assessment SaaS platform targeting large blue-chip organisations conducting large volumes of hiring.

www.sovaassessment.com

Investment date:	November 2020
Equity held:	37.2% (2024: 37.2%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	£104,000 (2024: £93,000)
Last submitted accounts:	31 March 2024
Consolidated turnover:	£6,780,000 (2023: £5,611,000)
Consolidated loss before tax:	£(3,685,000) (2023: £(5,360,000))
Consolidated net liabilities:	£(5,460,000) (2023: £(3,593,000))

7
Fable Data Limited
Fable Data provides anonymised, pan-European consumer transaction data and analysis to institutional investors, businesses, governments and academics.

www.fabledata.com

Investment date:	December 2022
Equity held:	14.2% (2024: 6.2%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	n/a (2024: n/a)
Last submitted accounts:	31 December 2023
Consolidated turnover:	Not available¹ (2022: Not available¹)
Consolidated profit before tax:	Not available¹ (2022: Not available¹)
Consolidated net liabilities:	£(1,720,000) (2022: £(2,111,000))

8
Value Blue B.V.
Value Blue is a provider of enterprise architecture management software, that is growing in the UK. The product allows companies to map their existing technology architecture in a single location to easily plan, collaborate and execute both large scale transformational and everyday IT projects.

www.valueblue.com

Investment date:	January 2022
Equity held:	20.3% (2024: 20.3%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	£317,000 (2024: £19,000)
Last submitted accounts:	31 December 2023
Consolidated turnover:	Not available¹ (2022: Not available¹)
Consolidated loss before tax:	€(7,412,000) (2022: €(9,185,000))
Consolidated net liabilities:	€(6,189,000) (2022: €(4,595,000))

9
Mention Me Limited
Mention Me is a referral engineering SaaS platform that helps business to consumer (B2C) businesses acquire new customers more successfully through their referral channel.

www.mention-me.com

Investment date:	December 2021
Equity held:	19.4% (2024: 19.4%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	n/a (2024: n/a)
Last submitted accounts:	31 December 2023
Consolidated turnover:	£11,561,000 (2022: £10,244,000)
Consolidated loss before tax:	£(5,175,000) (2022: £(5,621,000))
Consolidated net assets:	£5,302,000 (2022: £10,173,000)

10
Fuse Universal Limited

Fuse is a business-to-business software provider of a cloud-based learning technology platform for corporates, founded in 2008 and based in London (with further offices in South Africa and Australia).

www.fuseuniversal.com

Investment date:	August 2019
Equity held:	0% (2024: 0%)
Valuation basis:	Revenue multiple
Income received in year to 31 January 2025:	£56,000 (2024: £100,000)
Last submitted accounts:	31 December 2023
Consolidated turnover:	£7,997,000 (2022: £9,338,000)
Consolidated loss before tax:	£(1,044,000) (2022: £(2,816,000))
Consolidated net liabilities:	£(2,468,000) (2022: £(3,682,000))

These numbers are not available per the latest public filings on Companies House or the company is non-UK.

Outlook

It has been a challenging few years for the broader technology sector, with both geopolitical and economic factors impacting the ability of portfolio companies to grow and perform as successfully as forecast. Against this backdrop, I am pleased to report a stable NAV as portfolio companies have shown great resilience in the face of these challenges. Companies have been operating more efficiently in terms of their capital requirements and in several cases we are seeing top-line revenue growth returning steadily, albeit not to the same degree as experienced prior to the beginning of this more turbulent period. The slowdown in revenue growth observed across the portfolio occurred alongside companies striving to preserve cash and move towards profitability to extend their cash runways.

The nature of the current portfolio and the characteristics of the technology-focused businesses means that several companies have had some degree of protection from the full impact of these more challenging macroeconomic conditions. This is due to recurring revenues and long-term contracts being key features of their business models.

As mentioned in the Chair’s Statement, we were delighted and grateful for the support we’ve received from the Company’s new and existing investors, with the latest fundraise closing fully subscribed, including the overallotment facility. These funds will allow the Company to continue to support the existing portfolio in their growth plans and to invest in new opportunities which have the potential to become successful and deliver great returns to shareholders in the years to come.

We were also pleased that the Company benefitted from three profitable disposals in the period, which together returned £18.9 million in proceeds to the Company. We are hopeful that this could indicate an improvement in the mergers and acquisitions (M&A) market, providing more opportunities for exits and offering the Company sustainable growth prospects.

Despite the macroeconomic climate remaining uncertain, we believe that the rapid pace of change and advancements being made with the development and adoption of AI technology will create many new businesses seeking growth capital. This provides us with a degree of optimism about the Company’s future investment prospects and for its current well-diversified portfolio, as the component companies seek to take advantage which component companies are similarly seeking to take advantage of these advancements in AI. Hence, I am confident that the Company is well-positioned to capitalise on these market opportunities as they arise and that they will be able to offer further growth potential for the Company’s continued success.

RISKS AND RISK MANAGEMENT

The Board assesses the risks faced by Apollo and, as a board, reviews the mitigating controls and actions, and monitors the effectiveness of these controls and actions.

Emerging and principal risks, and risk management

The Board is mindful of the ongoing risks and will continue to make sure that appropriate safeguards are in place, in addition to monitoring the cash flow forecasts to make sure that the Company has sufficient liquidity.

The Board carries out a regular review of the risk environment in which the Company operates.

Emerging risks

The Board has considered emerging risks. The Board seeks to mitigate emerging risks and those noted below by setting policy, regular review of performance and monitoring progress and compliance. In the mitigation and management of these risks, the Board applies the principles detailed in the Financial Reporting Council’s Guidance on Risk Management, Internal Control and Related Financial and Business Reporting.

The following are some of the potential emerging risks management and the Board are currently monitoring:

adverse changes in global macroeconomic environment;
artificial intelligence;
geopolitical tensions; and
climate change.

Principal risks

*Risk*	*Mitigation*	*Change*
*Investment performance*:
The focus of Apollo’s investments is in unquoted, small and medium-sized VCT qualifying companies which, by their nature, entail a higher level of risk and may have lower cash reserves than investments in larger quoted companies. Poor performance across these investments may impact Apollo’s ability to raise new funds from investors.	Octopus has significant experience and a strong track record of investing in unquoted companies, and appropriate due diligence is undertaken on every new investment. A member of the Octopus Ventures team is typically appointed to the board of a portfolio company subject to an evaluation using a risk based approach that considers the size of the company within the Apollo portfolio and the engagement levels of other investors. Regular board reports are prepared by the portfolio company’s management and examined by the Portfolio Manager. This arrangement, in conjunction with its Portfolio Talent team’s active involvement, allows Apollo to play a prominent role in a portfolio company’s ongoing development and strategy. Although investment strategy is focused on B2B software, the overall risk in the portfolio is mitigated by diversifying investment across a wide spread of holdings in terms of the underlying sub-sector served by the portfolio companies, and their financing stage, age, industry sector and business models. The Board reviews the investment portfolio with the Portfolio Manager on a regular basis. The Portfolio Manager is incentivised to make sure Apollo performs well, via a Performance Incentive Fee (charged annually) for exceeding certain performance hurdles.	Increased exposures reflected in the previous period remain unchanged due to the continuing difficult macro environment and challenging trading conditions for some portfolio companies continuing.
*Risk*	*Mitigation*	*Change*
*VCT qualifying status risk:*
Apollo is required at all times to observe the conditions for the maintenance of HMRC-approved VCT status. The loss of such approval could lead to Apollo and its investors losing access to the tax benefits associated with VCT status and, in certain circumstances, to investors being required to repay the initial income tax relief on their investment.	Prior to making an investment, the Portfolio Manager seeks assurance from Apollo’s VCT status adviser that the investment will meet the legislative requirements for VCT investments. On an ongoing basis, the Portfolio Manager monitors Apollo’s compliance with VCT regulations on a current and forecast basis to ensure ongoing compliance with VCT legislation. Regular updates are provided to the Board throughout the year. The VCT status adviser formally reviews Apollo’s compliance with VCT regulations on a bi-annual basis and reports its results to the Board.	VCT status monitoring by independent advisers continues to reduce the risk of an issue causing a loss of VCT status.
*Risk*	*Mitigation*	*Change*
*Operational – reliance on third parties*:
The Board is reliant on the Portfolio Manager to manage investments effectively, and manage the services of a number of third parties, in particular the registrar and tax advisers. A failure of the systems or controls at the Portfolio Manager or third-party providers could lead to an inability to provide accurate reporting and to ensure adherence to VCT and other regulatory rules.	The Board reviews the system of internal control, both financial and non-financial, operated by the Portfolio Manager (to the extent the latter are relevant to Apollo’s internal controls). These include controls that are designed to ensure that Apollo’s assets are safeguarded and that proper accounting records are maintained, as well as any regulatory reporting. Feedback on other third-parties is reported to the Board on at least an annual basis, including adherence to Service Level Agreements where relevant. During the year a depositary has been appointed. This increases the number of key third parties involved in the running of the Company, but also adds additional layers of oversight of the Portfolio Manager.	No overall change in risk exposure on balance.
*Risk*	*Mitigation*	*Change*
*Information security:*
A lack of suitable controls could result in a data breach and fines and/or business disruption. The Board is reliant on the Portfolio Manager and third parties to take appropriate measures to prevent a loss of confidential customer information or other malicious events.	Annual due diligence is conducted on third parties, which includes a review of their controls for information security. The Portfolio Manager has a dedicated information security team and a third party is engaged to provide continual protection in this area. A security framework is in place to help prevent malicious events. The Portfolio Manager reports to the Board on an annual basis to update it on relevant information security arrangements. Significant and relevant information security breaches are escalated to the Board when they occur.	No overall change on balance, although cyber threat remains a significant risk area faced by all service providers. The appropriateness of mitigants in place are continuously reassessed to adapt to new risk exposures, such as those posed by artificial intelligence.
*Risk*	*Mitigation*	*Change*
*Economic:*
Events such as an economic recession, movement in interest rates, fluctuations in foreign exchange rates, inflation, political instability and rising living costs could adversely affect some smaller companies’ valuations, as they may be more vulnerable to changes in trading conditions or the sectors in which they operate. This could result in a reduction in the value of Apollo’s assets.	Apollo invests in a portfolio of companies serving markets across a diverse range of sectors, which helps to mitigate against the impact of performance in any one sector. Apollo also maintains adequate liquidity to make sure that it can continue to provide follow-on investment to those portfolio companies that require it and which is supported by the individual investment case. The Portfolio Manager monitors the impact of macroeconomic conditions on an ongoing basis and provides updates to the Board at least quarterly.	Increased exposures reflected in the previous periods remain and have heightened further as economic uncertainty persists through interest rate changes, the risk of recession and other economic factors.
*Risk*	*Mitigation*	*Change*
*Legislative:*
A change to the VCT regulations could adversely impact Apollo by restricting the companies Apollo can invest in under its current strategy. Similarly, changes to VCT tax reliefs for investors could make VCTs less attractive and impact Apollo’s ability to raise further funds. Failure to adhere to other relevant legislation and regulation could result in reputational damage and/or fines. We are also pleased that the sunset clause in place for April 2025, regarding eligibility of VCTs for tax relief, has been extended to 2035.	The Portfolio Manager engages with HM Treasury and industry bodies to demonstrate the positive benefits of VCTs in terms of growing UK companies, creating jobs and increasing tax revenue, and to help shape any change to VCT legislation. The Portfolio Manager employs individuals with expertise across the legislation and regulation relevant to Apollo. Individuals receive ongoing training and external experts are engaged where required.	Risk exposure has continued to reduce since the previous period following the extension of the sunset clause to 2035 being agreed.
*Risk*	*Mitigation*	*Change*
*Liquidity:*
Apollo invests in smaller unquoted companies, which are inherently illiquid as there is no readily available market for these shares. Therefore, these may be difficult to realise for their fair market value at short notice.	The Portfolio Manager prepares cash flow forecasts to make sure cash levels are maintained in accordance with policies agreed with the Board. Apollo’s overall liquidity levels are monitored on a quarterly basis by the Board, with close monitoring of available cash resources. Apollo maintains sufficient cash and readily realisable securities, including MMFs and OEICs, which can be accessed at short notice. At 31 January 2025, 91% of current asset investments were held in MMFs, realisable within one business day, and 9% in OEICs, realisable within seven business days.	Risk exposure remains unchanged from the previous period.
*Risk*	*Mitigation*	*Change*
*Valuation:*
While investments within the portfolio are valued in accordance with International Private Equity and Venture Capital (IPEV) valuation guidelines, for smaller companies establishing a fair value can be difficult due to the lack of readily available market data for similar shares, resulting in a limited number of external reference points.	Valuations of portfolio companies are performed by appropriately experienced staff, with detailed knowledge of both the portfolio company and the market in which it operates. These valuations are then subject to review and approval by the Octopus Valuations Committee, comprised of staff who are independent of Octopus Ventures and with relevant knowledge of unquoted company valuations. The Board reviews valuations after they have been agreed by the Octopus Valuations Committee.	Risk exposure remains unchanged from the previous period due to economic uncertainty within valuation modelling.

VIABILITY STATEMENT
In accordance with provision 36 of the AIC Code of Corporate Governance, the Directors have assessed the prospects of the Company over a period of five years, consistent with the expected investment holding period of a VCT investor. Under VCT rules, subscribing investors are required to hold their investment for a five-year period in order to benefit from the associated tax reliefs. The Board regularly considers strategy, including investor demand for the Company’s shares, and a five-year period is considered to be a reasonable time horizon for this.

The Board carried out a robust assessment of the emerging and principal risks facing the Company and its current position.

This includes risks which may adversely impact its business model, future performance, solvency or liquidity, and focused on the major factors which affect the economic, regulatory and political environment. Particular consideration was given to the Company’s reliance on, and close working relationship with, the Portfolio Manager. The principal risks faced by the Company and the procedures in place to monitor and mitigate them are set out above.

The Board has carried out robust stress testing of cash flows which included assessing the resilience of portfolio companies, including the requirement for any future financial support and the ability to pay dividends and buybacks.

The Board has additionally considered the ability of the Company to comply with the ongoing conditions to make sure it maintains its VCT qualifying status under its current investment policy.

Based on the above assessment the Board confirms that it has a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the five-year period to 31 January 2030. The Board is mindful of the ongoing risks and will continue to make sure that appropriate safeguards are in place, in addition to monitoring the cash flow forecasts to make sure that the Company has sufficient liquidity.

DIRECTORS’ RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report and the Financial Statements in accordance with applicable law and regulations. They are also responsible for ensuring that the Annual Report and Accounts include information required by the Listing Rules of the Financial Conduct Authority.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable laws) including FRS 102 – “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company for that period.

In preparing these financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and
prepare a Strategic Report, a Directors’ Report and Directors’ Remuneration Report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to make sure that the financial statements and the Directors’ Remuneration Report comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as each of the Directors is aware:

there is no relevant audit information of which the Company’s auditor is unaware; and

the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Directors are responsible for preparing the annual report in accordance with applicable law and regulations. Having taken advice from the Audit and Risk Committee, the Directors consider the annual report and the financial statements, taken as a whole, provide the information necessary to assess the Company’s position, performance, business model and strategy and is fair, balanced and understandable.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm that, to the best of their knowledge:

the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
the Annual Report and Accounts (including the Strategic Report), give a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

On behalf of the Board

Murray Steele
Chair

INCOME STATEMENT

	Year ended 31 January 2025			Year ended 31 January 2024
	Revenue £’000	Capital £’000	Total £’000	Revenue £’000	Capital £’000	Total £’000
Realised gain/(loss) on disposal of fixed asset investments	–	1,226	1,226	–	(876)	(876)
Change in fair value of fixed asset investments	–	37,666	37,666	–	9,317¹	9,317¹
Change in fair value of current asset investments	–	(574)	(574)	–	16	16
Investment income	4,082	–	4,082	2,576¹	–	2,576¹
Investment management fees	(2,147)	(6,442)	(8,589)	(1,862)	(5,587)	(7,449)
Performance fee	–	(6,139)	(6,139)	–	(14)	(14)
Other expenses	(3,555)	–	(3,555)	(4,006)	–	(4,006)
Foreign currency translation	(7)	–	(7)	1	–	1
Profit/(loss) before tax	(1,627)	25,737	24,110	(3,291)¹	2,856¹	(435)
Tax	–	–	–	–	–	–
Profit/(loss) after tax	(1,627)	25,737	24,110	(3,291)¹	2,856¹	(435)
Earnings/(loss) per share – basic and diluted	(0.2p)	3.0p	2.8p	(0.5p)¹	0.4p¹	(0.1p)

The ‘Total’ column of this statement is the profit and loss account of Apollo; the revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing operations.
Apollo has only one class of business and derives its income from investments made in shares and securities and from money market funds.

¹ The presentation and classification of £3.5 million of accrued loan interest was updated to be part of the fair value of investments. This balance is therefore an amendment to the balance presented in the 31 January 2024 accounts. This had no impact on the overall loss for the year presented or net asset value.

Apollo has no other comprehensive income for the period.

The accompanying notes are an integral part of the financial statements.

BALANCE SHEET

	As at 31 January 2025		As at 31 January 2024
	£’000	£’000	£’000	£’000
Fixed asset investments		395,018		331,878¹
Current assets:
Investments	7,912		8,486
Money market funds	83,544		47,950
Debtors	1,424		244¹
Cash at bank	4,251		4,868
Applications cash	16,780		8,852
Total current assets	113,911		70,400¹
Current liabilities	(26,366)		(11,984)
Net current assets		87,545		58,416¹
Net assets		482,563		390,294
Share capital		956		773
Share premium		62,281		27,476
Special distributable reserve		299,284		266,132
Capital redemption reserve		191		172
Capital reserve realised		(25,949)		(15,275)
Capital reserve unrealised		153,438		117,027¹
Revenue reserve		(7,638)		(6,011)¹
Total shareholders’ funds		482,563		390,294
Net asset value per share – basic and diluted		50.5p		50.5p

¹The presentation and classification of £3.5 million of accrued loan interest was updated to be part of the fair value of investments. This balance is therefore an amendment to the balance presented in the 31 January 2024 accounts. This had no impact on the overall loss for the year presented or net asset value.

The statements were approved by the Directors and authorised for issue on 22 May 2025 and are signed on their behalf by:

Murray Steele
Chair
Company number: 05840377

The accompanying notes are an integral part of the financial statements.

STATEMENT OF CHANGES IN EQUITY

	Share capital £’000	Share premium £’000	Special distributable reserves¹ £’000		Capital redemption reserve £’000	Capital reserve realised¹ £’000	Capital reserve unrealised £’000	Revenue reserve¹ £’000	Total £’000
As at 1 February 2024	773	27,476	266,132	172		(15,275)	117,027²	(6,011) ²	390,294
Total comprehensive income for the year	–	–	–	–		(11,355)	37,092	(1,627)	24,110
Total contributions by and distributions to owners:	–	–	–	–		–	–	–	–
Repurchase and cancellation of own shares	(19)	–	(8,981)	19		–	–	–	(8,981)
Issue of shares	202	106,017	–	–		–	–	–	106,219
Share issue cost	–	(5,982)	–	–		–	–	–	(5,982)
Dividends paid	–	–	(23,097)	–		–	–	–	(23,097)
Total contributions by and distributions to owners:	183	100,035	(32,078)	19		–	–	–	68,159
Other movements:
Prior year fixed asset gains now realised	–	–	–	–		681	(681)	–	–
Cancellation of Share Premium	–	(65,230)	65,230	–		–	–	–	–
Total other movements	–	(65,230)	65,230	–		681	(681)	–	–
Balance as at 31 January 2025	956	62,281	299,284	191		(25,949)	153,438	(7,638)	482,563

¹ Included within these reserves is an amount of £265,697,000 (2024: £244,846,000) which is considered distributable to shareholders under Companies Act rules. The Income Taxes Act 2007 restricts distribution of capital from reserves created by the conversion of the share premium account into a special distributable reserve until the third anniversary of the share allotment that led to the creation of that part of the share premium account. As at 31 January 2025, £19,920,000 (2024: £34,910,000) of the special reserve is distributable under this restriction.
²The presentation and classification of £3.5 million of accrued loan interest was updated to be part of the fair value of investments. This balance is therefore an amendment to the balance presented in the 31 January 2024 accounts. This had no impact on the overall loss for the year presented or net asset value.

The accompanying notes are an integral part of the financial statements.

	Share capital £’000	Share premium £’000	Special distributable reserves¹ £’000		Capital redemption reserve £’000	Capital reserve realised¹ £’000	Capital reserve unrealised £’000	Revenue reserve¹ £’000	Total £’000
As at 1 February 2023	657	78,440	174,061	159		(20,136)	119,032	(2,720)	349,493
Total comprehensive income for the year	–	–	–	–		(6,477)	9,333²	(3,291)²	(435)
Total contributions by and distributions to owners:
Repurchase and cancellation of own shares	(13)	–	(6,743)	13		–	–	–	(6,743)
Issue of shares	129	70,927	–	–		–	–	–	71,056
Share issue cost	–	(3,912)	–	–		–	–	–	(3,912)
Dividends paid	–	–	(19,165)	–		–	–	–	(19,165)
Total contributions by and distributions to owners:	116	67,015	(25,908)	13		–	–	–	41,236
Other movements:
Prior year fixed asset losses now realised	–	–	–	–		11,338	(11,338)	–	–
Cancellation of Share Premium	–	(117,979)	117,979	–		–	–	–	–
Total other movements	–	(117,979)	117,979	–		11,338	(11,338)	–	–
Balance as at 31 January 2024	773	27,476	266,132	172		(15,275)	117,027²	(6,011)²	390,294

¹ Reserves considered distributable to shareholders per the Companies Act.
² The presentation and classification of £3.5 million of accrued loan interest was updated to be part of the fair value of investments. This balance is therefore an amendment to the balance presented in the 31 January 2024 accounts. This had no impact on the overall loss for the year presented or net asset value.

The accompanying notes are an integral part of the financial statements.

CASH FLOW STATEMENT

	Year to 31 January 2025 £’000	Year to 31 January 2024 £’000
Cash flows from operating activities
Profit/(loss) before tax	24,110	(435)
Adjustments for:
Decrease/(increase) in debtors¹	(10)¹	4,622²
(Decrease)/increase in creditors	6,454	(8,490)
(Gain)/loss on disposal of fixed asset investments	(1,226)	876
Gain on valuation of fixed asset investments	(37,666)	(9,317)²
Loss/(Gain) on valuation of current asset investments	574	(17)
Transfer of accrued loan interest receivable²	–	(1,824)²
Net cash utilised in operating activities	(7,764)	(14,585)
Cash flows from investing activities
Purchase of fixed asset investments	(47,131)	(32,975)
Proceeds on sale of fixed asset investments	21,713	18,292
Purchase of current asset investments	–	(4,499)
Net cash utilised in investing activities	(25,418)	(19,182)
Cash flows from financing activities
Movement in applications account	7,928	(409)
Purchase of own shares	(8,981)	(6,743)
Proceeds from share issues	100,951	66,543
Cost of share issues	(5,982)	(3,912)
Dividends paid (net of DRIS)	(17,829)	(14,653)
Net cash generated from financing activities	76,087	40,826
Increase in cash and cash equivalents	42,905	7,059
Opening cash and cash equivalents	61,670	54,611
Closing cash and cash equivalents	104,575	61,670
Cash and cash equivalents comprise
Cash at bank	4,251	4,868
Applications cash	16,780	8,852
Money market funds	83,544	47,950
Closing cash and cash equivalents	104,575	61,670

The accompanying notes are an integral part of the financial statements.

¹ Movement in debtors, adjusted for £1,170,000 of deferred consideration proceeds.
² The presentation and classification of £3.5 million of accrued loan interest was updated to be part of the fair value of investments. This balance is therefore an amendment to the balance presented in the 31 January 2024 accounts. This had no impact on the overall loss for the year presented or net asset value.

NOTES TO THE FINANCIAL STATEMENTS

1. Significant accounting policies

Apollo is a Public Limited Company (plc) incorporated in England and Wales and its registered office is 33 Holborn, London, EC1N 2HT.

Apollo’s principal activity is to invest in a diverse portfolio of predominantly unquoted companies with the aim of providing shareholders with attractive tax-free dividends and long-term capital growth.

Basis of preparation
The financial statements have been prepared under the historical cost convention, except for the measurement at fair value of certain financial instruments, and in accordance with UK Generally Accepted Accounting Practice (GAAP), including Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (FRS 102), and with the Companies Act 2006 and the Statement of Recommended Practice (SORP) ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts (issued 2014 and updated in July 2022)’.

The significant accounting policies have remained unchanged since those set out in Apollo’s 2024 Annual Report and Accounts.

2. Investment income
Accounting policy

Fixed returns on non-equity shares and debt securities are recognised on a time apportionment basis (including time amortisation of any premium or discount to redemption), so as to reflect the effective interest rate, provided it is considered probable that payment will be received in due course. Income from fixed-interest securities and deposit interest is accounted for on an effective interest rate method. Investment income includes interest earned on MMFs. Dividend income is shown net of any related tax credit.

Dividends receivable are brought into account when Apollo’s right to receive payment is established and it is probable that payment will be received. Fixed returns on debt are recognised provided it is probable that payment will be received in due course. The nature of dividends received is assessed to establish whether they are revenue or income dividends.

Disclosure

	31 January	31 January
	2025	2024
	£’000	£’000
Loan note interest receivable¹	163	–¹
Dividends receivable MMF interest income	741 3,178	576 2,000
	4,082	2,576¹

3. Investment management and performance fees

	31 January 2025			31 January 2024
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Investment management fee	2,147	6,442	8,589	1,862	5,587	7,449
Investment performance fee	–	6,139	6,139	–	14	14
	2,147	12,581	14,728	1,862	5,601	7,463

For the purpose of the revenue and capital columns in the Income Statement, the management fee has been allocated 25% to revenue and 75% to capital, in line with the Board’s expected long-term split of returns in the form of income and capital gains respectively from Apollo’s investment portfolio. The investment performance fee, explained below, is allocated 100% to capital as it is deemed that capital appreciation on investments has primarily driven the total return of Apollo above the required hurdle rate at which the performance fee is payable. The management fee, administration and accountancy fees are calculated based on the NAV which is then multiplied by the number of shares in issue, calculated on a daily basis.

Octopus provide investment management, accounting and administration services and company secretarial services to Apollo under a management agreement which may be terminated at any time thereafter by not less than twelve months’ notice given by either party. No compensation is payable in the event of terminating the agreement by either party, if the required notice period is given. The fee payable, should insufficient notice be given, will be equal to the fee that would have been paid should continuous service be provided. The basis upon which the management fee is calculated is disclosed within the Annual Report and financial statements.

Apollo has established a performance incentive scheme whereby the Portfolio Manager is entitled to an annual performance related incentive fee in the event that certain performance criteria are met. Further details of this scheme are disclosed within the Annual Report and financial statements. As at 31 January 2025 £6,139,076 was due to the Portfolio Manager by way of an annual performance fee (2024: £14,000).

4. Other expenses
Accounting policy

All expenses are accounted for on an accruals basis. Expenses are charged wholly to revenue, apart from management fees charged 75% to capital and 25% to revenue, performance fees charged wholly to capital and transaction costs. Transaction costs incurred when purchasing or selling assets are written off to the Income Statement in the period that they occur.

Disclosure

	31 January	31 January
	2025	2024
	£’000	£’000
Accounting and administration services	1,288	1,117
Ongoing trail commission	1,130	1,011
Directors’ fees	182	140
Registrars’ fees	120	106
Audit fees	103	85
Legal fees	50	12
Bad debt provision	0	953
Other administration expenses	682	582
	3,555	4,006

The ongoing charges ratio of Apollo for the year to 31 January 2025 was 2.4% (2024: 2.4%). Total annual running costs are capped at 2.75% of average net assets (2024 cap: 2.75% of average net assets). This figure excludes any extraordinary items, adviser charges, impairment of interest and performance fees.

No non-audit services were provided by Apollo’s auditor.

5. Tax
Accounting policy

Current tax is recognised for the amount of income tax payable in respect of the taxable profit/(loss) for the current or past reporting periods using the current UK corporation tax rate. The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue return on the “marginal” basis as recommended in the SORP.

Deferred tax is recognised in respect of all timing differences at the reporting date. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax assets are only recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Disclosure

	31 January 2025			31 January 2024
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Profit/(loss) before tax¹	(1,627)	25,737	24,110	2,856¹	(3,290)¹	(435)
Tax at 25% (2024: 24%)¹	(407)	6,434	6,027	686¹	(791)¹	(104)
Effects of:
Non-taxable dividend income	(9)	–	(9)	(16)	–	(16)
Non-taxable capital gains on valuations and disposals¹	–	(9,579)	(9,579)	–	(2,032)¹	(2,032)¹
Expenses not deductible for tax purposes	–	12	12	–	14	14
Excess management expenses on which deferred tax not recognised¹	416	3,133	3,549	1,332¹	806¹	2,138¹

Total tax charge	–	–	–	–	–	–

Approved VCTs are exempt from tax on chargeable gains. Since the Directors intend that Apollo will continue to conduct its affairs so as to maintain its approval as a VCT, no deferred tax has been provided in respect of any capital gains or losses arising on the revaluation or disposal of investments based on a prospective tax rate of 25%. Unrelieved tax losses of £64,803,000 (2024: £51,785,000) are estimated to be carried forward at 31 January 2025 (subject to completion of Apollo’s tax return) and are available for offset against future taxable income, subject to agreement with HMRC. Apollo has not recognised the deferred tax asset of £16,201,000 (2024: £12,946,000) in respect of these tax losses because there is insufficient forecast taxable income in excess of deductible expenses to utilise these losses carried forward. There is no expiry period on these deductible expenses under the UK HMRC legislation.

6. Dividends
Accounting policy

Dividends payable are recognised as distributions in the financial statements when Apollo’s liability to make payment has been established. This liability is established on the record date, the date on which those shareholders on the share register are entitled to the dividend. Interim dividends to equity shareholders are declared by the Directors.

Disclosure

	31 January	31 January
	2025	2024
	£’000	£’000
Dividends paid in the year
Second interim dividend: 1.3p per share paid 2 May 2024 (2024: 1.3p per share) in respect of prior year	10,901	8,739
Interim dividend: 1.3p per share paid 20 December 2024 (2024: 1.4p) in respect of the current year	12,196	10,426
	23,097	19,165

	31 January	31 January
	2025	2024
	£’000	£’000
Dividends in respect of the year
Interim dividend: 1.3p per share paid 20 December 2024 (2024: 1.4p)	12,196	10,426
Second interim dividend: 1.3p paid 8 May 2025 (2024: 1.3p per share)	13,663	10,901
	25,859	21,327
The figures above include dividends elected to be reinvested through the DRIS. In the year to 31 January 2025, the net proceeds reinvested through the DRIS totalled £5,268,000 (2024: £4,513,000).

7. Earnings per share

	31 January 2025			31 January 2024
	Revenue	Capital	Total	Revenue	Capital	Total
Profit/(loss) attributable to ordinary shareholders (£’000)¹	(1,627)	25,737	24,110	(3,291)¹	2,856¹	(435)¹
Earnings per ordinary share (p)¹	(0.2p)	3.0p	2.8p	(0.5p)¹	0.4p¹	(0.1p)¹

The earnings per share is based on 867,758,701 Ordinary shares (2024: 709,769,066), being the weighted average of shares in issue during the year.

There are no potentially dilutive capital instruments in issue and, as such, the basic and diluted earnings per share are identical.

8. Net asset value per share

	31 January	31 January
	2025	2024
	Ordinary shares	Ordinary shares
Net assets (£)	482,563,000	390,294,000
Shares in issue	956,172,843	772,743,612
Net asset value per share (p)	50.5	50.5

There are no potentially dilutive capital instruments in issue and, as such, the basic and diluted NAV per share are identical.

9. Transactions with the Portfolio Manager

Apollo has employed Octopus throughout the year as the Portfolio Manager. Apollo has incurred £8,589,000 (2024: £7,449,000) in management fees due to the Portfolio Manager in the year. At 31 January 2025 there was £2,295,000 outstanding (2024: £1,989,000). The management fee is payable quarterly in arrears and is based on 2% of the NAV calculated daily from 31 January.

The Portfolio Manager is entitled to an annual performance-related incentive fee, subject to the total return (NAV plus cumulative dividends paid) per share being at least 100p at the end of the relevant period. This performance fee is equal to 20% of the amount by which the NAV plus cumulative dividends paid per share exceeds the higher of:

The highest total return in previous accounting periods. This is currently the return in the year to 31 January 2024 (137.9p).
The total return as at 1 February 2012, plus the average Bank of England interest rate to date, commencing 1 February 2012.

The Board considers that the liability becomes due at the point that the performance criteria are met, which has happened at the end of this financial year. In the year, Apollo incurred performance fees of £6,139,076 (2024: £14,000). At 31 January 2025 there were £6,139,076 of outstanding performance fees to be paid (2024: £14,000).
The Portfolio Manager also provides accounting and administrative services to Apollo, payable quarterly in arrears, for a fee of 0.3% of the NAV calculated daily. During the year £1,288,000 (2024: £1,117,000) was paid to the Portfolio Manager, of which £344,000 (2024: £298,000) was outstanding at the Balance Sheet date, for the accounting and administrative services. In addition, the Portfolio Manager also provides company secretarial services for a fee of £20,000 per annum (2024: £20,000).

Several members of the Octopus investment team hold Non-Executive Directorships as part of their monitoring roles in Apollo’s portfolio companies, but they have no controlling interests in those companies. The Portfolio Manager receives transaction fees and directors’ fees from these portfolio companies. During the year ended 31 January 2025, Directors’ fees of £788,000 attributable to the investments of Apollo were received by the Portfolio Manager (2024: £821,000).

Octopus AIF Management Limited remuneration disclosures (unaudited)
Quantitative remuneration disclosures required to be made in this annual report in accordance with the FCA Handbook FUND 3.3.5 are available on the website: https://www.octopusinvestments.com/remuneration-disclosures/.

10. Related party transactions

As at 31 January 2025, Octopus Investments Nominees Limited (OINL) held 315 shares (2024: 315) in Apollo as beneficial owner, having purchased these from shareholders to protect their interests after delays or errors with shareholder instructions and other similar administrative issues. Throughout the period to 31 January 2025 OINL purchased nil shares (2024: 315) at a cost of nil (2024: £163) and sold nil shares (2024: 173,900) for proceeds of nil (2024: £87,993). This is classed as a related party transaction as per the Listing Rules, as Octopus, the Portfolio Manager, and OINL are part of the same group of companies. Any such future transactions, where OINL takes over the legal and beneficial ownership of Company shares will be announced to the market and disclosed in annual and half-yearly reports.

11. 2025 financial information

The figures and financial information for the year ended 31 January 2025 are extracted from the Company’s annual financial statements for the period and do not constitute statutory accounts. The Company’s annual financial statements for the year to 31 January 2025 have been audited but have not yet been delivered to the Registrar of Companies. The Auditors’ report on the 2025 annual financial statements was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under Sections 498(2) or 498(3) of the Companies Act 2006.

12. 2024 financial information

The figures and financial information for the year ended 31 January 2024 are extracted from the Company’s annual financial statements for the period and do not constitute statutory accounts. The Company’s annual financial statements for the year to 31 January 2024 have been audited but have not yet been delivered to the Registrar of Companies. The Auditors’ report on the 2024 annual financial statements was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under Sections 498(2) or 498(3) of the Companies Act 2006.

13. Annual Report and financial statements
The Annual Report and financial statements will be posted to shareholders in June and will be available on the Company’s website. The Notice of Annual General Meeting is contained within the Annual Report.

14. General information
Registered in England & Wales. Company No. 05840377
LEI: 213800Y3XEIQ18DP3O53

15. Directors
Murray Steele (Chair), Christopher Powles, Alex Hambro, Claire Finn and Gillian Elcock.

16. Secretary and registered office
Octopus Company Secretarial Services Limited
6^th Floor, 33 Holborn, London EC1N 2HT

The MIL Network –

May 27, 2025

MIL-OSI Security: Canoncito Man Sentenced for Role in 2022 Fatal Assault

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

ALBUQUERQUE – A Canoncito man was sentenced to three years’ probation for his role in the violent 2022 assault that led to the death of John Doe.

There is no parole in the federal system.

According to court documents, on May 27, 2022, Landen Toledo, 21, an enrolled member of the Navajo Nation, along with Cole Ray Shorty, confronted John Doe at his residence to retrieve Shorty’s backpack. During the confrontation, John Doe exited his vehicle with a baseball bat. Toledo grabbed John Doe by the wrists, threw him to the ground, and kicked him in the stomach several times, causing him to drop the bat. Shorty then struck John Doe on the head with the bat. John Doe was left unconscious at the scene and later died from blunt head trauma.

Shorty pled guilty to voluntary manslaughter and was sentenced to 72 months in prison.

Toledo pleaded guilty to voluntary manslaughter.

U.S. Attorney Ryan Ellison and Philip Russell, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, made the announcement today.

The FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Navajo Department of Criminal Investigations. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Armed Career Criminal Sentenced To More Than 17 Years In Federal Prison

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

Tampa, FL – U.S. District Judge Steven D. Merryday has sentenced Ataire Carl Ray (30, Tampa) to 17 years and 6 months in federal prison for possessing a firearm and ammunition as a convicted felon. Ray qualified as an Armed Career Criminal after having committed at least three prior serious violent or drug offenses.

According to the evidence presented at trial, on April 1, 2022, Ray got into an argument during which he waived around a 9mm firearm with an extended magazine, while making various threats. Tampa Police Department officers were called to the scene and approached Ray, who ran and threw the loaded gun into a neighboring property, where it was quickly recovered. Ray was apprehended about a block away from where he threw the firearm.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorney Michael R. Kenneth. The forfeiture was handled by Assistant United States Attorney James A. Muench.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: ‘Machine Gun-Trafficking’ Drug Dealer Sentenced to More Than Fifteen Years in Federal Prison

Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

PROVIDENCE – Jose Marrero, 36, of Woonsocket, describe in court documents as a “violent, machine gun-trafficking, kilogram-level drug dealer” was sentenced today to more than fifteen years in federal prison, having pleaded guilty to charges of possession of a firearm in furtherance of drug trafficking, possession with intent to distribute fentanyl, and possession of a firearm by a prohibited person, announced acting United States Attorney Sara Miron Bloom.

Court documents illustrate that Jose Marrero, 36, previously convicted twice in Rhode Island state court on drug trafficking charges, freely displayed photographs and videos on social media of himself in possession of drugs and firearms, notably semi-automatic pistols, AR-15 style rifles, and semi-automatic pistols that have been modified with machinegun conversion devices. Marrero displayed himself and others in possession of the weapons in his apartment, while watching TV, playing video games, drinking alcohol, and driving around the streets of Rhode Island. He also made social media posts demonstrating himself and others actively firing the modified fully automatic weapons.

Additionally, court documents reveal videos of the defendant in possession of multiple kilos of cocaine and of numerous messages between Marrero and others that “not only convey his leadership but just how active, eager, and dangerous of a drug trafficker he is.” Text messages illustrate conversations between Marrero and a drug supplier, and how he, Marrero, organized people to move two kilograms of drugs per week. In some of his messages, Marrero discusses having drug runners, complaining about their behavior and demanding higher productivity from them, directing them to locations to provide certain quantities of drugs to customers, and discussing debts owed to him.

Marrero made it well known, to his drug trafficking counterparts and otherwise, that he possessed numerous firearms. He prominently displayed himself and others with an array of firearms on his social media account. Excerpts from Marrero’s text messages demonstrate that he enlisted his girlfriend and other acquaintances to purchase firearms for him, as he was unable to do so himself due to his past felony convictions; that he accepted firearms as payment for drug sales; and that he solicited an associate to obtain guns for him, notably “any glocks” that he could get his hands on.

Marrero was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr. to 181 months of incarceration to be followed by 5 years of federal supervised release.

The case was prosecuted by Assistant United States Attorneys Christine D. Lowell, Stacey A. Erickson, and Sandra R. Hebert.

The matter was investigated by ATF, with the assistance of Massachusetts State Police, Woonsocket Police Department, Central Falls Police Department, and West Warwick Police Department.

This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

###

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Federal Indictment Charges Rockford Man with Arson

Source: Federal Bureau of Investigation (FBI) State Crime News

ROCKFORD — A Rockford man has been indicted by a federal grand jury for allegedly maliciously destroying – by means of fire and explosive materials – a building at 201 15th Ave. in Rockford.

JAMES PURIFOY, 50, committed the arson on Jan. 22, 2023, according to an indictment returned today in U.S. District Court in Rockford. Arraignment has not yet been scheduled.

The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. The Rockford Fire Department and Rockford Police Department assisted in the investigation. The government is represented by Assistant U.S. Attorney Jessica S. Maveus.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The minimum sentence for the arson count is five years in federal prison, while the maximum sentence is 20 years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Chicago Man Sentenced to 50 Years in Prison for Kidnapping, Carjacking, and Firearm Offenses

Source: Federal Bureau of Investigation (FBI) State Crime News

CHICAGO — A Chicago man has been sentenced to 50 years in federal prison for kidnapping three drivers and sexually assaulting two of them at gunpoint.

ANDREW ANANIA, 29, kidnapped an Uber driver on March 8, 2021, in Darien, Ill. Anania showed the driver a gun and forced her to drive to Chicago and park in alleys, where he sexually assaulted her before fleeing on foot. On March 10, 2021, Anania and another man, WALTER MORAN, kidnapped a woman who was on her way to work in Cicero, Ill. Anania pointed a gun at the driver and instructed her to drive to Chicago, where Moran exchanged gunfire with others on the street. The pair eventually released the victim and took her car. A jury earlier this year convicted Anania on kidnapping, carjacking, and firearm charges in connection with those incidents.

Anania pleaded guilty prior to trial to another kidnapping and carjacking. That incident occurred on Feb. 27, 2021, in Chicago, when Anania got in a vehicle with the driver, claimed he had a gun, and sexually assaulted her. The woman escaped when the car stopped at an intersection. Anania fled in the vehicle and crashed it a short time later.

Anania committed all of the offenses while awaiting trial in a separate, unrelated federal firearm case not assigned to the sentencing judge in this matter. Anania had been released on bond in that case after multiple court hearings at which the government repeatedly sought pre-trial detention.

U.S. District Judge Edmond E. Chang imposed the 50-year prison sentence during a hearing on May 13, 2025, in federal court in Chicago.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the Cicero, Ill. Police Department, Darien, Ill. Police Department, Summit, Ill. Police Department, Stickney, Ill. Police Department, Chicago Police Department, and the U.S. Marshals Service. The government was represented by Assistant U.S. Attorneys Cornelius Vandenberg, Megan Donohue, and Hayley Altabef.

Moran, of Cicero, Ill., pleaded guilty last year to kidnapping and carjacking charges. Judge Chang sentenced Moran in April to 15 years and eight months in federal prison.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Federal Judge Sentences Chicago Street Gang Member to 34 Years in Prison for Murdering a Man and Threatening a Witness

Source: Federal Bureau of Investigation (FBI) State Crime News

CHICAGO — A member of a violent Chicago street gang has been sentenced to 34 years in federal prison for murdering a man to maintain and increase his position in the gang.

DIONTAE HARPER, 25, of Chicago, admitted in a plea agreement that he murdered Paul Harris on May 13, 2020. Harper and another man fired multiple shots at Harris as he sat in a vehicle at a gas station in the 8600 block of South Halsted Street in Chicago’s Auburn Gresham neighborhood. Harper stated in the plea agreement that he committed the murder to maintain and increase his position in the Faceworld street gang, a criminal organization based on the South Side of Chicago whose members engaged in violent crimes and trafficked narcotics.

While Harper was detained in law enforcement custody earlier this year, he made threatening statements directed toward a witness.

Harper pleaded guilty in January to a federal charge of discharging a firearm during a crime of violence, causing Harris’s death. U.S. District Judge Manish S. Shah imposed the 34-year prison sentence during a hearing on May 8, 2025, in federal court in Chicago.

Harper’s sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Julia Schwartz, Sushma Raju, and Matthew Moyer.

Two other individuals – the other shooter of Harris and the getaway driver – pleaded guilty to committing murder in aid of racketeering and are awaiting sentencing.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Twelve Years in Prison for Suburban Chicago Man Who Trafficked Fentanyl and Illegally Possessed Handgun

Source: Federal Bureau of Investigation (FBI) State Crime News

CHICAGO — A suburban Chicago man who trafficked fentanyl and cocaine and illegally possessed a loaded handgun has been sentenced to 12 years in federal prison.

WILLIAM FILLYAW possessed the drugs and gun on Oct. 28, 2022, in the parking lot of his apartment complex in Gurnee, Ill. Fillyaw carried a backpack that contained the cocaine packaged in quarter-ounce quantities, the fentanyl wrapped in three square bricks, and the handgun. Fillyaw intended to sell the fentanyl and cocaine on the streets, and he acknowledged possessing the gun in connection with his drug trafficking activities. The firearm had no serial number and had been assembled from a gun kit, making it an untraceable “ghost gun.”

Fillyaw, 47, pleaded guilty earlier this year to federal drug and firearm charges. U.S. District Judge Matthew F. Kennelly imposed the 12-year prison sentence during a hearing on Friday in federal court in Chicago.

The sentence was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Michael E. Hensle, Special Agent-in-Charge of the Milwaukee, Wis., Field Office of the FBI. Valuable assistance was provided by the U.S. Drug Enforcement Administration, Milwaukee Police Department, Cudahy, Wis. Police Department, and Wisconsin State Patrol.

“Narcotics distribution and firearm offenses are serious crimes that adversely impact the people who live and work in the Northern District of Illinois,” Assistant U.S. Attorney Kirsten Moran and Special Assistant U.S. Attorney Niranjan Emani argued in the government’s sentencing memorandum. “The increased presence of ghost guns in Chicago, and the country in general, is troubling, as they are often used in crimes and are difficult to trace.”

Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN). In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Five Romanians Admit Bank Fraud Involving ATM Skimming Devices

Source: Federal Bureau of Investigation (FBI) State Crime News

ST. LOUIS – Five Romanian nationals have admitted installing skimming devices on St. Louis area ATMs to harvest bank account information from customers and commit fraud.

Mihai Vlaicu, 48, and Mihai Florin Marinescu, 37, pleaded guilty Wednesday in U.S. District Courtin St. Louis to one count of conspiracy to commit bank fraud.

Laurentiu Miguel Ivan, 33, pleaded guilty to the same charge in March and Nelu Nae, 37, and Venera Isabelle Dumitru, 28, pleaded guilty to the charge in April. A sixth person indicted in the case, Ianus Nita, 53, has not yet been arrested.

In their plea agreements, the five admit stealing bank account information via skimming devices and then using, or attempting to use, that information to withdraw money from ATMs.

Around January of 2024, Vlaicu and Marinescu installed skimming devices on at least two bank ATMs, one in Clayton and one in Frontenac. They obtained the information of at least six victims, and then used cloned cards to try and withdraw cash.

On five days in April, Dumitru and Ivan used account information from two other victims to withdraw cash from ATMs in St. Louis. Ivan obtained $1,421 and Dumitru obtained $1,070.50.

On April 25, Dumitru and Ivan tried to withdraw cash from a St. Louis County ATM using an account number belonging to another victim. On April 30, Vlaicu tried to withdraw money from a St. Louis County ATM using the banking information of six victims.

On May 2, Marinescu unsuccessfully tried to install a skimming device on an ATM in south St. Louis County. Nae retrieved the device the next day.

On May 9, Marinescu installed a skimming device on an ATM in Wildwood. On May 11, Nita withdrew cash belonging to two victims from a St. Louis County ATM.

On May 28, Marinescu and Nae installed a skimming device on an ATM in St. Louis, which was located and removed by law enforcement before Nita and Vlaicu could retrieve it.

The conspirators were using an Airbnb in St. Louis County as a base for their criminal activity. Investigators found a laptop computer there containing hundreds of videos of customers entering their PINs when they used an ATM outfitted with a skimming device. They also found skimming devices, installation tools, a large amount of cash and numerous gift cards at the rented residence.

Ivan is scheduled to be sentenced June 25, Dumitru on July 10, Nae on July 23 and Marinescu and Vlaicu on August 20. The charge carries a penalty of up to 30 years in prison, a $1 million fine or both prison and a fine.

Ivan, Dumitru, Marinescu are not legally in the United States.

The FBI, the St. Louis Metropolitan Police Department, the Webster Groves Police Department, the Clayton Police Department and the Frontenac Police Department investigated the case with assistance from the St. Louis County Police Department. Assistant U.S. Attorney Gwen Carroll is prosecuting the case.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Two Convicted in St. Louis of Laundering Drug Proceeds for Sinaloa Cartel

Source: Federal Bureau of Investigation (FBI) State Crime News

ST. LOUIS – Two men were convicted Wednesday of all charges related to their laundering of money in the St. Louis area for the Sinaloa drug cartel.

Carl Von Garrett, 54, of St. Charles, Missouri and Tobiyyah Israel, 38, of Ohio, were each found guilty by a jury in U.S. District Court in St. Louis of one count of conspiracy to commit money laundering and one count of money laundering. Von Garrett was also found guilty of one additional count of money laundering. The trial began on May 12.

Two others have already pleaded guilty and been sentenced in the case. Luis Miguel Hernandez, 38, of Phoenix, pleaded guilty to one count of conspiracy to commit money laundering and two counts of money laundering and Antonio Jones, 51, of Florissant, Missouri, pleaded guilty to two counts of money laundering. Hernandez was sentenced in January to 87 months in prison and Jones was sentenced to 37 months in prison.

As part of his plea agreement, Hernandez admitted being driven by Von Garrett to a meeting with an undercover Drug Enforcement Administration task force officer in St. Louis on March 1, 2021, to deliver $100,095 in drug proceeds. Hernandez then arranged a series of meetings between Jones and the task force officer. On March 8, 2021, Jones handed over $100,000. Jones delivered $150,030 on March 17 and $100,000 on March 31. On April 8, Jones delivered $109,740 and $100,100 on May 18. On May 25, 2021, Jones delivered $100,100.

During closing arguments Tuesday, Assistant U.S. Attorney Jim Delworth told jurors that Von Garrett was the “focal point” of the conspiracy and Israel was a courier, like Jones. On April 14, Israel picked up $221, 020 from Von Garrett. Von Garrett was stopped by investigators, who found six phones and a ledger that contained dates and amounts of money roughly corresponding to cash drops, Delworth said. Israel told investigators that he’d been promised $1,000 to pick up the cash, and that he’d done so once before.

The money drops continued. On May 18, Jones delivered $110,100 and $100,100 one week later.

Both men are scheduled to be sentenced on August 21.

The Drug Enforcement Administration, IRS-Criminal Investigation, the FBI, the St. Louis County Police, the Bridgeton Police Department, the St. Louis Metropolitan Police Department, and the St. Charles County Police Department investigated the case. Assistant U.S. Attorneys Jim Delworth and Ricardo Dixon are prosecuting the case.

This prosecution is part of an Organized Crime Drug Enforcement Task Force (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 https://www.justice.gov/OCDETF.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Two Florida Men Plead Guilty for Their Roles in Years-Long Off-the-Books Payroll Scheme

Source: Office of United States Attorneys

Defendants Caused Combined Tax Loss of Nearly $10M and Facilitated Employment of Undocumented Aliens

Two Florida men pleaded guilty today before Magistrate Judge Leslie Hoffman Price for the Middle District of Florida for their roles in a years-long off-the-books payroll scheme. The pleas must be accepted by a U.S. district court judge.

The following is according to court documents and statements made in court: Michael Mayorga and Francisco Alvarez conspired with others to operate an illegal, off-the-books cash payroll system for construction workers to avoid paying employment taxes to the IRS and to defraud workers’ compensation insurance companies. Through the scheme, Mayorga and Alvarez facilitated the employment of undocumented aliens working illegally in the United States.

From 2015 to 2022, Alvarez and Mayorga and their co-conspirators created a series of shell companies to run an unlicensed check cashing and cash courier service business that cashed approximately $89 million in checks from subcontractors in the construction industry. The subcontractors used the cash to pay their workers. Mayorga provided bookkeeping and tax preparation services for some of the shell companies, and Alvarez and others facilitated the distribution of millions in cash to subcontractors. Mayorga also prepared false returns for the shell companies and members of the conspiracy that Alvarez, and others, filed. Specifically, Alvarez caused the filing of false tax returns and tax documents on behalf of one of the shell companies.

In total Mayorga caused a tax loss to the IRS of $8,647,824.

In total Alvarez caused a tax loss to the IRS of $2,331,731.

In addition to the tax crimes, Alvarez filed a false worker’s compensation insurance application. This allowed the shell companies to pay small insurance premiums. After fraudulently getting the insurance, Alvarez “rented” it to subcontractors so that the subcontractors could falsely provide proof of insurance when placing bids with contractors. Mayorga also provided false documents to insurance companies auditing them.

Alvarez and Mayorga will be sentenced at a later date. They each face a maximum penalty of five years in prison, a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and U.S. Attorney Gregory W. Kehoe for the Middle District of Florida made the announcement.

IRS Criminal Investigation and Homeland Security Investigations are investigating.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Kavitha Bondada and Rebecca A. Caruso of the Tax Division and Assistant U.S. Attorney Amanda Daniels for the Middle District of Florida are prosecuting the case.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Fairfield County man arrested on federal child pornography charges

Source: Office of United States Attorneys

COLUMBUS, Ohio – A Lancaster man was arrested yesterday afternoon on federal child pornography charges and appeared in federal court in Columbus today.

It is alleged that Carson A. Bigham, 23, possessed, distributed or received child pornography.

According to charging documents, law enforcement received two separate Cybertips from the National Center of Missing and Exploited Children (NCMEC) related to a Columbus man who was charged with federal child pornography crimes in March, including exploitation of a minor. One report was from Kik messenger regarding the distribution of 13 child pornography files. The second report was from Sniffies LLC, a map-based hookup application for gay, bisexual and bicurious men.

As part of their investigation, devices were seized from the Columbus man. Law enforcement’s forensic review of the devices revealed conversations between the Columbus man and Bigham. In the conversations, Bigham allegedly uses the screenname “daddy.” The conversations between the two men were sexual in nature and included discussions about engaging in sex with minors. Bigham also allegedly received child pornography during these discussions, including files which depicted prepubescent minors engaged in sex acts with adults.

Law enforcement officers learned that Bigham is employed as a Columbus firefighter and photographs of Bigham match those sent to the Columbus man during their conversations.

Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Jared Murphey, acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit; Franklin County Sheriff Dallas Baldwin; other members of the Franklin County Sheriff’s Office’s Internet Crimes Against Children (ICAC) Task Force; and officials from the Drug Enforcement Administration (DEA) Columbus Airport Group and Fairfield County Sheriff’s Office announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.

A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.

# # #

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Former Monroe County District Court Judge Sentenced to Two Years in Federal Prison

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

HELENA-WEST HELENA—A man who has served as local judge, prosecutor, and criminal defense attorney was sentenced to 24 months in federal prison for making false statements to the FBI. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on May 19, 2025, by United States District Court Judge D. Price Marshall Jr. There is no parole in the federal system.

According to court documents and evidence presented at trial Thomas David Carruth, 64, of Clarendon, served as an elected Monroe County district court judge. In that role, Carruth presided over criminal and civil matters. In April 2022, Carruth met with the girlfriend of a defendant in a criminal case pending before him. The girlfriend sought Carruth’s assistance in getting her boyfriend’s case dismissed. During the meeting, which the girlfriend recorded, Carruth solicited sex and a lingerie show from her in exchange for assisting her boyfriend.

Carruth asked the girlfriend, “How do you feel about sex?” and “The next step back from that is, do you have any nice lingerie? …Do you mind letting me see you in it?” He also asked the girlfriend, “So, if you change your mind about giving me a lingerie show…well, you got a body that can do it and if you have an attitude where you like to wear lingerie, I’d love to look – to see it on you…If you change your mind about seeing what an old man can do, you know…”

The jury found that, when questioned by the FBI, Carruth lied to agents about the incident, including by falsely stating that he did not “request,” “ask,” “offer”, make “overture[s] about”, “insinuate,” or “even [think] about,” sex with the girlfriend.

The jury convicted Carruth of one count of making false statements. Carruth was acquitted of charges of bribery, honest services fraud, and violations of the Travel Act.

“When judges exploit their positions for personal gain, they pervert justice which erodes public trust in the judiciary,” said Ross. “The sentence underscores that no one, including a debauched judge, is above the law.”

“Officials who violate the public’s trust for their own personal gain have no place in our Arkansas communities,” said Alicia D. Corder, Special Agent in Charge, FBI Little Rock Field Office. “FBI Little Rock will continue to work with members of the ArkTrust Public Corruption Task Force to protect Arkansans from corruption and hold perpetrators accountable for their actions.”

This case was investigated by the FBI. This case was prosecuted by Senior Litigation Counsel Nicholas W. Cannon and Trial Attorney Madison H. Mumma of the U.S. Department of Justice’s Criminal Division’s Public Integrity Section. They received substantial assistance from Assistant United States Attorney Julie Peters.

# # #

Additional information about the office of the

United States Attorney for the Eastern District of Arkansas, is available online at

https://www.justice.gov/edar

X (formerly known as Twitter):

@USAO_EDAR

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Former President of Palmetto Railways Sentenced for Role in Conspiracy to Commit Honest Services Fraud

Source: Office of United States Attorneys

CHARLESTON, S.C. — Jeffrey McWhorter, 63, of Mount Pleasant, has been sentenced to five years of probation with 12 months of home confinement for conspiracy to commit honest services fraud.

Evidence obtained in the investigation revealed that McWhorter and an individual named Kevin Newkirk agreed to accept a payment from Tony Berenyi of Berenyi Construction should he be awarded a construction bid for the company Newkirk worked for, which is a Texas-based logistics company. The Texas Company went to McWhorter for contractor recommendations and McWhorter facilitated an introduction to Berenyi. Through the bidding process, McWhorter, Newkirk, and Berenyi discussed the payment and when the Texas Company awarded the contract to Berenyi Construction, payments began from Berenyi. Ultimately, through the course of the conspiracy, Berenyi paid a total of $420,000 that was wired to a bank account in the name of Newkirk’s wife. Newkirk agreed to pay McWhorter his portion in cash and the evidence revealed that McWhorter received $136,500 in total payments. McWhorter did not disclose these payments on the required filings for public officials.

United States District Judge David C. Norton sentenced McWhorter to five years of probation with 12 months of home confinement and electronic monitoring. There is no parole in the federal system. There is no parole in the federal system. McWhorter was ordered to pay restitution in the amount of $75,198.02 and was fined $4,000. He must also complete 300 hours of community service. He must also complete 300 hours of community service. Kevin Newkirk was also charged and sentenced in April to five years of probation by United States District Judge David C. Norton.

This case was investigated by the FBI Columbia field office and Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Amy Bower is prosecuting the case.

###

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Honduran National Pleads Guilty to Unlawful Reentry

Source: Office of United States Attorneys

BOSTON – A Honduran national, illegally residing in Brockton, pleaded guilty yesterday in federal court in Boston to unlawfully reentering the United States after deportation.

Oscar Lopez, 41, a/k/a “Luis Maldonado,” pleaded guilty to one count of unlawful reentry of a deported alien. Lopez was arrested on April 16, 2025 and has remained in custody since. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for July 1, 2025.

According to the charging documents, Lopez is a citizen of Honduras who entered the United States illegally in 2003. Lopez did not appear for an Immigration Court date in 2003 and was ordered removed. Immigration officials were not able to remove Lopez until January 2013. Lopez returned to the United States just a few months later without permission and he was removed again in May 2013. At some point thereafter, Lopez returned again and Immigration and Customs Enforcement became aware of Lopez’s unlawful presence in the United States following arrests by state authorities in March and April 2024.

The charge of unlawful reentry of a deported alien provides for a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley and Patricia H. Hyde, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney John J. Reynolds of the Criminal Division is prosecuting the case.

MIL Security OSI –

May 27, 2025
MIL-OSI Global: Ukraine: it’s clear right now there are no serious plans for peace

Source: The Conversation – UK – By Jonathan Este, Senior International Affairs Editor, Associate Editor

When it comes to the sincerity, or otherwise, of Vladimir Putin’s apparent willingness to talk peace with Ukraine, the Russian leader has given us plenty of hints. He may insist he wants to see a deal done and an end to the killing. But his insistence that any agreement would have to address the “root causes” of the war is a clear indication that he hasn’t rowed back from his original maximalist war aims. To whit: no Nato membership, a Kremlin-friendly government in Kyiv, ownership of Crimea and control – preferably annexation – of the four provinces of Ukraine presently under Russian occupation.

Meanwhile his great ally Dmitry Medvedev continues to insist that there are at present no Ukrainian officials who legitimately qualify as partners for negotiation. The Russian national security council secretary claims that Ukraine is a “failed state” whose leaders’ lack of legitimacy, meanwhile, raise “serious questions” about who Russia can conclude any agreement with.

So when Donald Trump said this week after a two-hour chat with Putin that Russia and Ukraine would “immediately start negotiations” toward a ceasefire, it’s not clear who he thought the Russian president was planning to talk to if, as Putin and his cronies insist, Zelensky and his team are not legitimate. And, from what he had to say about his recent phone call with Putin, it appears that Trump has his eyes more on the sorts of deals that might be done with Russia once this is all cleared up.

As he posted on his Truth Social platform after talking with Putin: “Russia wants to do largescale [sic] TRADE with the United States when this catastrophic ‘bloodbath’ is over, and I agree. There is a tremendous opportunity for Russia to create massive amounts of jobs and wealth. Its potential is UNLIMITED.”

Accordingly, he has backed away from his previous willingness to join Europe in imposing fresh sanctions on Russia. Meanwhile Russia continues to hammer Ukraine both on the battlefield and via ever larger drone and missiles attacks against its civilian population.

Sign up to receive our weekly World Affairs Briefing newsletter from The Conversation UK. Every Thursday we’ll bring you expert analysis of the big stories in international relations.

The real clue to Trump’s attitude, writes Stefan Wolff, is the order of phone calls on Monday. Before settling down to talk with Putin, the US president put in a call to the Ukrainian president, Volodymyr Zelensky. Reporting back on the call, Zelensky said he had urged Trump that he mustn’t make any decisions about Ukraine “without us”. Having subsequently spoken at length with Putin, Trump emerged saying in his Truth Social post that Russia and Ukraine will “immediately start negotiations” towards a ceasefire and an end to the war.

The state of the conflict in Ukraine, May 21 2025.
Institute for the Study of War

But Wolff, professor of international security at the University of Birmingham who has written regularly here about the conflict, believes that the fact that Trump added the conditions for peace “will be negotiated between the two parties, as it can only be” suggests he is indeed planning to abandon his peacemaking ambitions. The whole deal was taking far longer than the 24 hours he boasted of during the election campaign last year.

Where this leaves Europe is unclear, writes Wolff. If it can no longer rely on Washington as a security partner (and the signs aren’t good), then this will require a substantial rethink. Indeed there are signs, with the UK’s recent agreement over security and defence, that minds are increasingly focused on a more self-reliant future. In turn, this has implications for US security. If Europe is compelled to rethink its security relationship with the US it could cut both ways as Washington pivots to face an increasingly aggressive China.

Read more:
After another call with Putin, it looks like Trump has abandoned efforts to mediate peace in Ukraine

Of course, it should have been clear to all concerned not to take Putin at face value over his apparent willingness to talk peace with Zelensky when he failed to turn up to talks in Istanbul at the end of last week. As Natasha Lindstaedt writes here, none of the main players attended the talks, despite plans for Putin, Zelensky and Trump to all meet face-to-face.

Lindstaedt, an expert in international relations at the University of Essex, describes what for all the world seemed like a bizarre game of bluff – certainly as far as Putin and Trump are concerned. All three leaders had promised to be there, but in the end they all sent intermediaries with the result that nothing of any consequence was agreed. Trump’s aides insisted that if Putin attended he would be there. Then the US president said the reason that Putin hadn’t turned up was because he knew Trump wasn’t going to be there.

“It’s certainly hard to take peace talks seriously when there is an awkward back-and-forth just about who is going to attend,” Lindstaedt concludes. “And while Trump thinks peace is only possible through bilateral meetings between himself and Putin, it’s clear he can’t even influence Putin to show up to peace talks that the Russian president himself suggested.”

Read more:
Putin is testing how far he can push Trump by not turning up for Istanbul talks

Pie in the sky?

The US president, meanwhile, has announced plans for an ambitious missile defence system to be called “Golden Dome”. It’s a next-generation system, says Trump, “capable even of intercepting missiles launched from the other side of the world, or launched from space”.

The plan, for which US$25 billion (£18.6 billion) has been set aside in the US president’s “one big beautiful bill”, presently before the US Congress, calls for a network of surveillance satellites complemented by a separate fleet of offensive satellites that would shoot down offensive missiles soon after lift-off. Trump has estimated this will cost US$175 billion and will be completed by the end of his current four-year term. But other estimates are that it will be much more expensive and take far longer to complete.

“There has never been anything like this”, the US president said. And indeed there hasn’t, writes Matthew Powell, an expert in air power from the University of Portsmouth. In fact, Powell is deeply sceptical that the technology to enable such an ambitious defence system exists at present. He points to Ronald Reagan’s Strategic Defense Initiative, which became known by critics, with their tongues in their cheeks, as “Star Wars”, which never really got any further than the drawing board.

It did, however, have the effect of signalling to the Kremlin and the Soviet leader, Mikhail Gorbachev, that the sky would be the limit in terms of US willingness to push the boundaries of defence spending. Powell believes it significantly changed the calculations when it came to the feasibility of continuing the nuclear arms race and may have been responsible for the end of the cold war.

Read more:
Golden Dome: what Trump should learn from Reagan’s ‘Star Wars’ missile defence system plan

Incidentally, the US president’s funding bill scraped through the House of Representatives with 215 votes for and 214 against. In addition to setting aside funds for Golden Dome, the bill, which in its current form adds trillions of dollars to the US debt, has been described by Democrat critics as a “tax scam”. A statement from Democrat leaders said: “This fight is just beginning, and House Democrats will continue to use every tool at our disposal to ensure that the GOP Tax Scam is buried deep in the ground, never to rise again.”

But how much stomach do the Democrats have for the fight? They’ve had a pretty terrible few months since the election. Their approval rating in March was at 29%, the worst since polling began in 1992. Fernando Pizarro, a lecturer in journalism at City St Georges, University of London, who has several Emmys under his belt for his work on US politics, has cast his eye over some of the leading Democrats who he thinks will spearhead the opposition to the Republicans over the next few years and identifies a few players who could vie for the presidential nomination in 2028.

Read more:
The top Democrats leading the fight against Trump’s agenda

Gaza: situation increasingly desperate

Meanwhile, after 11 weeks of Israeli blockade of aid to the people of Gaza, limited deliveries have now recommenced in the face of pressure from both the US and increasingly outspoken interventions from the likes of the UK, France and Canada.

But despite reports that up to 100 trucks are now being allowed into the Gaza Strip, human rights agencies and aid organisations have said that there is a desperate threat of widespread starvation unless the amount of food, fuel and medicine getting through increases exponentially. And fast.

There is talk of a US-administered programme, the Gaza Humanitarian Foundation (GHF), which could be up and running by the end of May and could accelerate the delivery of vital supplies to the civilian population while ensuring it does not does not get into the hands of militants or black marketeers.

But this scheme has its critics, write Sarah Schiffling and Liz Breen, experts in humanitarian logistics and health service operations at Hanken School of Economics and the University of Bradford respectively. They point to a number of flaws, including the plan to concentrate the secure distribution points in southern and central Gaza, forcing large numbers of people to travel considerable distances for supplies.

The GHF plan also calls for aid distribution to be coordinated with the Israel Defense Forces, which humanitarian organisations says is a “humanitarian cover for a military strategy of control and dispossession”.

Schiffling and Breen point out that humanitarian organisations have 160,000 pallets of supplies and almost 9,000 aid trucks ready to be dispatched across the border “as soon as Israel allows it”. Whether Israel will allow it is, of course, another question entirely.

Read more:
Israel allows a ‘limited’ amount of aid back into Gaza, where the humanitarian situation is desperate

World Affairs Briefing from The Conversation UK is available as a weekly email newsletter. Click here to get updates directly in your inbox.

– ref. Ukraine: it’s clear right now there are no serious plans for peace – https://theconversation.com/ukraine-its-clear-right-now-there-are-no-serious-plans-for-peace-257388

MIL OSI – Global Reports –

May 27, 2025
MIL-OSI Security: 16 Defendants Federally Charged in Connection with DanaBot Malware Scheme That Infected Computers Worldwide

Source: Office of United States Attorneys

LOS ANGELES – A federal grand jury indictment and criminal complaint unsealed today charge 16 defendants who allegedly developed and deployed the DanaBot malware which a Russia-based cybercrime organization controlled and deployed, infecting more than 300,000 victim computers around the world, facilitated fraud and ransomware, and caused at least $50 million in damage.

The defendants include Aleksandr Stepanov, 39, a.k.a. “JimmBee,” and Artem Aleksandrovich Kalinkin, 34, a.k.a. “Onix”, both of Novosibirsk, Russia. Stepanov was charged with conspiracy, conspiracy to commit wire fraud and bank fraud, aggravated identity theft, unauthorized access to a protected computer to obtain information, unauthorized impairment of a protected computer, wiretapping, and use of an intercepted communication.

Kalinkin was charged with conspiracy to gain unauthorized access to a computer to obtain information, to gain unauthorized access to a computer to defraud, and to commit unauthorized impairment of a protected computer. Both defendants are believed to be in Russia and are not in custody.

According to the indictment and complaint, DanaBot malware used a variety of methods to infect victim computers, including spam email messages containing malicious attachments or hyperlinks. Victim computers infected with DanaBot malware became part of a botnet (a network of compromised computers), enabling the operators and users of the botnet to remotely control the infected computers in a coordinated manner. The owners and operators of the victim computers are typically unaware of the infection.

The DanaBot malware allegedly operated on a malware-as-a-service model, with the administrators leasing access to the botnet and support tools to client coconspirators for a fee that was typically several thousand dollars a month. The DanaBot malware was multi-featured and had extensive capabilities to exploit victim computers. It could be used to steal data from victim computers, and to hijack banking sessions, steal device information, user browsing histories, stored account credentials, and virtual currency wallet information.

DanaBot also had the capability to provide full remote access to victim computers, to record keystrokes, and record videos showing the activity of users on victim computers. DanaBot has further been used as an initial means of infection for other forms of malware, including ransomware. The DanaBot malware has infected over 300,000 computers around the world, and caused damage estimated to exceed $50 million.

DanaBot administrators operated a second version of the botnet that was used to target victim computers in military, diplomatic, government, and related entities. This version of the botnet recorded all interactions with the computer and sent stolen data to a different server than the fraud-oriented version of DanaBot. This variant was allegedly used to target diplomats, law enforcement personnel, and members of the military in North America, and Europe.

“Pervasive malware like DanaBot harms hundreds of thousands of victims around the world, including sensitive military, diplomatic, and government entities, and causes many millions of dollars in losses,” said United States Attorney Bill Essayli for the Central District of California. “The charges and actions announced today demonstrate our commitment to eradicating the largest threats to global cybersecurity and pursuing the most malicious cyber actors, wherever they are located.”

“The enforcement actions announced today, made possible by enduring law enforcement and industry partnerships across the globe, disrupted a significant cyber threat group, who were profiting from the theft of victim data and the targeting of sensitive networks,” said Special Agent in Charge Kenneth DeChellis of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Cyber Field Office. “The DanaBot malware was a clear threat to the Department of Defense and our partners. DCIS will vigorously defend our infrastructure, personnel, and intellectual property.”

“Today’s announcement represents a significant step forward in the FBI’s ongoing efforts to disrupt and dismantle the cyber-criminal ecosystem that wreaks havoc on global digital security,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “We are grateful for the coordinated efforts of our domestic and international law enforcement partners in holding cyber criminals accountable, no matter where they operate.”

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Kalinkin would face a statutory maximum sentence of 72 years in federal prison, and Stepanov would face a statutory maximum sentence of five years in federal prison.

As part of today’s operation, Defense Criminal Investigative Service (DCIS) agents effected seizures and takedowns of DanaBot command and control servers, including dozens of virtual servers hosted in the United States. The U.S. government is now working with partners including the Shadowserver Foundation to notify DanaBot victims and help remediate infections.

These law enforcement actions were taken in conjunction with Operation Endgame, an ongoing, coordinated effort among international law enforcement agencies aimed at dismantling and prosecuting cybercriminal organizations around the world.

Amazon, Crowdstrike, ESET, Flashpoint, Google, Intel 471, Lumen, PayPal, Proofpoint, Team CYMRU, and ZScaler provided valuable assistance.

The investigation into DanaBot was led by the FBI’s Anchorage Field Office and the Defense Criminal Investigative Service, working closely with Germany’s Bundeskriminalamt (BKA), the Netherlands National Police, and the Australian Federal Police. The Justice Department’s Office of International Affairs provided significant assistance.

Assistant United States Attorney Aaron Frumkin of the Cyber and Intellectual Property Crimes Section is prosecuting these cases. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the forfeiture case.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Fort Wayne Woman Ordered to Repay Funds From PPP Loan Fraud

Source: Office of United States Attorneys

FORT WAYNE – Dashanae Hamlet-Davis, 26 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to a federal felony for wire fraud, announced Acting United States Attorney Tina L. Nommay.

Hamlet-Davis was sentenced to 18 months of probation and ordered to pay $23,431.53 in restitution to the Small Business Administration.

According to documents in the case, Hamlet-Davis falsely claimed gross income for a business that did not exist when she applied for a Paycheck Protection Program (PPP) loan. The PPP program provided loans to small businesses for job retention and other expenses as part the CARES Act and for emergency financial assistance to Americans suffering from the economic impact of the COVID-19 pandemic. Hamlet-Davis falsely claimed that she was the sole proprietor of a retail business when in reality, no such business existed. As a result of her fraudulent representations, Hamlet-Davis received PPP funds which she used for her own benefit on personal items such as clothing, jewelry, electronics, and a vacation.

“This sentencing demonstrates the commitment of the Treasury Inspector General for Tax Administration (TIGTA) to investigate and bring to justice those who victimize the American taxpayer,” said Kelly Moening, TIGTA Special Agent-in-Charge. “Fraudulently applying for loans through a federal program meant to assist Americans in need will be met with aggressive investigation and prosecution. I want to thank our law enforcement partners and the U.S. Attorney’s Office for their commitment to this goal.”

This case was investigated by the United States Treasury Inspector General for Tax Administration with assistance from IRS Criminal Investigation. The case was prosecuted by Assistant United States Attorney Justin C. Sheridan.

MIL Security OSI –

May 27, 2025
MIL-OSI Security: Three Individuals Sentenced in Conspiracy Involving Bribery of Government Contracting Officer

Source: Office of United States Attorneys

HUNTSVILLE, Ala. – Three men have been sentenced for their respective roles in a conspiracy to bribe a public official, announced United States Attorney Prim F. Escalona.

U.S. District Court Judge Liles C. Burke sentenced Coogan Preston, 56, of Columbia, South Carolina, to 64 months in prison, Francisco Guerra, 56, of Lexington, Alabama, to 60 months in prison, and Jason Ingram, 48, of Rogersville, Alabama, to 24 months in prison. In December 2024, Guerra, Preston, and Ingram pleaded guilty to conspiracy to bribe a public official.

According to the plea agreements, the scheme began in 2016 and continued until 2021. As part of the scheme, Guerra agreed to provide money and other items of value to Preston, a government contracting official working at Redstone Arsenal in Huntsville, Alabama. In exchange for these bribes, Preston identified subcontracting opportunities for companies owned and operated by Guerra and convinced the prime contractor to use one of Guerra’s companies as a subcontractor.

“The government officials and contractors working on Redstone Arsenal play a critical role in supporting the United States military,” U.S. Attorney Escalona said. “The individuals sentenced today chose personal gain over their professional duty. These sentences were the result of that choice and should serve as a warning to others.”

“As a government contracting official, Preston traded the public’s trust given to him for greed,” said Demetrius Hardeman, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Using their investigative and forensic accounting skills, IRS Criminal Investigation special agents were able to follow the money—bringing Preston and his conspirators to justice.”

“In collaboration with its investigative partners, the Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) vigorously pursues fraud and corruption that threaten the integrity of the DoD, particularly when such crimes impact the well-being of our Nation’s Warfighters,” said Jason Sargenski, Special Agent-in-Charge of DCIS’s Southeast Field Office. “DCIS remains steadfast in working with our law enforcement partners to ensure those who commit fraud against the U.S. Government are held accountable.”

The Department of the Army’s Criminal Investigation Division investigated the case with assistance from U.S. Immigration and Customs Enforcement, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation, and the United States Department of Defense Office of Inspector General – Defense Criminal Investigative Service. Assistant U.S. Attorney Lloyd Peeples prosecuted the cases.

MIL Security OSI –

May 27, 2025

Category: Crime

This Council should use the tools at its disposal to press parties to conflict to protect civilians: UK statement at the UN Security Council

Updates to this page

Pie in the sky?

Gaza: situation increasingly desperate