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Category: Crime

  • MIL-OSI Asia-Pac: Terrorism remains an evolving challenge, use of advanced tech necessitates collaborative & action-oriented approach, says Defence Secretary at 14th meeting of ADMM-Plus Experts Working Group on Counter-Terrorism

    Source: Government of India

    Terrorism remains an evolving challenge, use of advanced tech necessitates collaborative & action-oriented approach, says Defence Secretary at 14th meeting of ADMM-Plus Experts Working Group on Counter-Terrorism

    Calls for developing a ‘whole of government and whole of society’ approach to counter radicalisation & violent extremism and enhancing legal & financial frameworks to disrupt terror financing networks

    Posted On: 19 MAR 2025 5:34PM by PIB Delhi

    “India remains steadfast in its zero-tolerance policy towards terrorism and believes in an approach that combines robust domestic mechanisms, enhanced intelligence-sharing, and strong regional cooperation,” said Defence Secretary Shri Rajesh Kumar Singh during the keynote address at the 14th meeting of ASEAN Defence Ministers’ Meeting (ADMM) – Plus Experts Working Group (EWG) on Counter-Terrorism in New Delhi on March 19, 2025. 

    The Defence Secretary stated that terrorism remains a dynamic & evolving challenge, with threats increasingly transcending borders, and the use of advanced technology, cyber tools & unmanned systems by terrorist groups necessitates a cohesive, forward looking and action-oriented approach. He added that the Indo-Pacific region, given its geopolitical and economic significance, is particularly vulnerable to transitional terrorism and violent extremism, which calls for a comprehensive, adaptive, and deeply collaborative response. 

    Shri Rajesh Kumar Singh emphasised that, through the ADMM-Plus platform, India seeks to build synergy among the defence forces, security agencies, and policy frameworks to address emerging threat effectively. “In the complex, hyper-connected & fast-paced world, social and ecological systems are fragile. It is important to assess this risk to empower the Governments in priority setting and decision making. Terrorism can destabilise governments, undermine civil society, and threaten social & economic development. We have a collective obligation to provide the decision-makers guidance to understand uncertainty and better weigh the impact on decision making,” he said. 

    The event witnessed the handing over of ADMM-Plus EWG on Counter-Terrorism chairmanship to India and Malaysia from Russia and Myanmar for a three-year cycle. The Defence Secretary voiced the commitment of the new co-chairs towards ensuring that the efforts over this cycle yield practical and meaningful results. “By leveraging our collective expertise, enhancing capacity-building, and fostering deeper trust and cooperation, we can significantly strengthen regional security and counter-terrorism preparedness,” he said. 

    Shri Rajesh Kumar Singh stated that in the present cycle of EWG on Counter-Terrorism, the focus will be on strengthening regional cooperation and improving interoperability among the Armed Forces through structured joint initiatives. He added that the aim will be to counter the misuse of emerging technologies and addressing threats posed by terrorists through use of AI-driven propaganda, encrypted communications, drone technologies. Strengthening cyber resilience against online radicalisation and recruitment efforts will also be a focus area, he said. 

    Towards the latter half of the cycle, the Defence Secretary said, work will be carried out together towards capacity building through practical exercises wherein Malaysia will conduct a Table-Top Exercise in 2026, facilitating strategic-level decision making simulations to improve Counter-Terrorism planning and preparedness. In 2027, India will host a Field Training Exercise, aimed at stimulating real-world Counter-Terrorism scenarios, enhancing operational coordination, and testing rapid response mechanisms. He called for developing a whole of government and whole of society approach to counter radicalisation & violent extremism and enhancing legal & financial frameworks to disrupt terror financing networks. 

    Shri Rajesh Kumar Singh congratulated Malaysia for assuming the chairmanship of ASEAN for the year 2025, extending India’s full support. He acknowledged Malaysia’s effort in effectively steering ASEAN under the current geopolitical scenario with the theme ‘Inclusivity and Sustainability’. He added that India is privileged to co-chair this crucial initiative alongside Malaysia, and appreciates the participation of representatives from the ASEAN member states, the Plus nations, the ASEAN Secretariat, and Timor-Leste. “Your presence reaffirms our shared commitment in combating terrorism in all its forms,” he said. 

    The Defence Secretary termed India’s relationship with ASEAN as a key pillar of its foreign policy, which is at the heart of Act East Policy. He reiterated India’s strong support to a stable and unified ASEAN which serves as an institutional anchor of an important region. 

    Delegations from 10 ASEAN members (Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Vietnam, Singapore and Thailand) and eight dialogue partners (Australia, New Zealand, RoK, Japan, China, USA and Russia) along with Timor Leste and ASEAN Secretariat are participating in the meeting. India is co-chairing the EWG on Counter-Terrorism for the first time.

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    MIL OSI Asia Pacific News –

  • MIL-OSI Security: Lead Defendant in Federal Case Against High-End Brothel Network Sentenced to Four Years in Prison

    Source: Office of United States Attorneys

    Defendant persuaded women to travel interstate to work for prostitution network and required sex buyers to undergo screening process, including providing employer information and references

    BOSTON – The manager responsible for operating an interstate prostitution network of sophisticated high-end brothels in greater Boston and eastern Virginia was sentenced today in federal court in Boston. 

    Han Lee, 42, of Cambridge, Mass., was sentenced by U.S. District Court Judge Julia E. Kobick to four years in prison to be followed by one year of supervised release. The defendant was also ordered pay forfeiture in the amount of $5,418,572 and restitution in an amount to be determined at a later date. In September 2024, Lee pleaded guilty to one count of conspiracy to persuade, induce, entice, and coerce one or more individuals to travel in interstate or foreign commerce to engage in prostitution and one count of money laundering conspiracy. Han Lee was arrested and charged in November 2023 with co-defendants Junmyung Lee, 31, of Dedham, Mass., and James Lee, 69, of Torrance, Calif. The defendants were subsequently indicted by a federal grand jury in February 2024.

    “Han Lee didn’t just recruit women to sell their bodies for sex – she built a criminal enterprise designed to thrive in the shadows, evading law enforcement while profiting off her victims like commodities,” said United States Attorney Leah B. Foley. “We will relentlessly pursue and prosecute those who exploit vulnerable women through interstate sex trafficking and launder their illicit gains. Those who engage in this conduct will be identified, held accountable and sent to federal prison. Full stop.”

    “Han Lee and her co-conspirators crafted an elaborate scheme to set up an interstate commercial sex network and to hide their activity by laundering the proceeds. This secretive and covert industry treats women like commodities and provides no protection for the safety and wellbeing of the participants. Today’s sentence reinforces the seriousness of this crime and our commitment to use every investigative tool we have to pursue justice,” said Homeland Security Investigations New England Special Agent in Charge Michael J. Krol.

    From at least July 2020, Han Lee operated an interstate prostitution network with multiple brothels in Cambridge and Watertown, Mass., as well as in Fairfax and Tysons, Va. The defendant established the infrastructure for these brothels in multiple states for the purposes of persuading, inducing and enticing women – primarily Asian women – to travel to Massachusetts and Virginia to engage in prostitution. 

    Specifically, Han Lee and her co-defendants, rented high-end apartments as brothel locations, which they furnished and regularly maintained. The defendants coordinated the women’s airline travel and transportation and permitted them to stay overnight in the brothel locations so they did not have to find lodging elsewhere, therefore enticing women to participate in their prostitution network. To protect and maintain the secrecy of the business and ensure that the women did not draw attention to the prostitution work inside apartment buildings, Han Lee and her co-defendants established house rules for the women during their stays.  

    The defendants advertised their prostitution network and offered appointments with women in either greater Boston or eastern Virginia via bostontopten10.com and browneyesgirlsva.blog, respectively. Both websites purported to advertise nude models for professional photography at upscale studios as a front for prostitution offered through appointments. Investigators searched and seized the domain names for both websites pursuant to search warrants executed in November 2023.

    Additionally, each website described a verification process that interested sex buyers undertook to become eligible for appointment bookings– including requiring that clients complete a form providing their full names, email address, phone number, employer and reference if they had one. Han Lee and her co-defendants persuaded the women to work for their prostitution network because the business maintained a regular customer base of men that were adequately screened, ensuring that the customers were not members of law enforcement or men who posed a risk to the safety and security of the commercial sex workers.

    Han Lee and her co-defendants maintained local brothel phone numbers which they used to communicate with verified customers and schedule appointments via text messages; send customers a “menu” of available options at the brothel, including the women and sexual services available and the hourly rate; and to text customers directions to the brothel’s location where they engaged in commercial sex with the women. 

    According to the charging documents, the defendants charged sex buyers a premium price for appointments with the women advertised on their websites, which ranged from approximately $350 to upwards of $600 per hour depending on the services and were paid in cash. In total, Han Lee’s brothel network generated over $5.6 million in revenue from approximately 9,450 scheduled dates with sex buyers. 

    To conceal the proceeds of the prostitution network, Han Lee deposited hundreds of thousands of dollars of cash proceeds into personal and third-party bank accounts and peer-to-peer transfers. Additionally, the defendants regularly used hundreds of thousands of dollars of the cash proceeds from the prostitution business to purchase money orders (in values under an amount that would trigger reporting and identification requirements) to conceal the source of the funds. These money orders were then used to pay for rent and utilities at brothel locations in Massachusetts and Virginia.

    In October 2024, Junmyung Lee pleaded guilty and is scheduled to be sentenced on April 18, 2025. James Lee pleaded guilty in February 2025 and is scheduled to be sentenced on May 28, 2025.

    Members of the public who have questions, concerns or information regarding this case should contact USAMA.VictimAssistance@usdoj.gov.

    U.S. Attorney Foley; HSI SAC Krol; and Cambridge Police Commissioner Christine Elow made the announcement today. Valuable assistance was provided by the Central District of California; Eastern District of Virginia; U.S. Postal Service; the Middlesex District Attorney’s Office and Watertown Police Department. Assistant U.S. Attorney Lindsey E. Weinstein of the Criminal Division and Assistant U.S. Attorney Raquelle Kaye, of the Asset Recovery Unit are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Leader of the Lynn Chapter of the Trinitarios Pleads Guilty to Racketeering Conspiracy

    Source: Office of United States Attorneys

    BOSTON – The former leader of the Lynn Chapter of the Trinitarios gang pleaded guilty today to racketeering charges.

    Aaron Diaz Liranzo, a/k/a “Sosa,” 26, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Nathaniel M. Gorton scheduled sentencing for June 25, 2025. Diaz Liranzo was arrested and charged in February 2025 at which time he was the Leader of the Lynn Chapter of the Trinitarios. 

    The Trinitarios is a violent criminal enterprise comprised of thousands of members across the United States. The Trinitarios adhere to a Magna Carta, employ an internal hierarchy to or organize and execute violence, and undertaken extensive efforts to maintain the secrecy of the organization and its members.  

    In February 2025, federal racketeering charges were unsealed against 22 leaders and members of the Trinitarios. The charges were the result of a multi jurisdictional investigation, which began in the aftermath of four murders as well as a series of attempted murders and shootings that took place in Lynn in 2023, allegedly committed by the Trinitarios criminal enterprise and its members. Diaz Liranzo is the sixth Defendant to plead guilty.

    During a period from at least 2021 through 2025, Diaz Liranzo served as the Primera or Number One of the Lynn Chapter of the Trinitarios. Diaz Liranzo admitted to participating in a shooting that took place in March 2019 that targeted multiple rival gang members outside of a Lynn nightclub. The victims were lured there by another member, who posed as a woman who needed a ride. Equipped with a firearm and knowledge of the victims whereabouts and vehicle they were driving, the defendant travelled to the nightclub and opened fire at the vehicle, discharging at least six rounds. During the incident, Diaz Liranzo shot two of the three victims seated in the car. Both victims suffered life-threatening injuries, but ultimately survived the incident.

    The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (also known as “racketeering conspiracy” or “RICO conspiracy”) provides for a sentence of up to life in prison, five years 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; Michael J. Krol, Special Agent in Charge, Homeland Security Investigations in New England; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Essex County District Attorney Paul F. Tucker; Massachusetts State Police Colonel Geoffrey D. Noble; and Lynn Police Chief Christopher P. Redd made the announcement. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Hampshire; U.S. Customs and Border Protection; the Suffolk District Attorney’s Office; the Rockingham County District Attorney’s Office (NH); and the Andover, Boston, Lawrence, Peabody and Salem Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.

    The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
     

    MIL Security OSI –

  • MIL-OSI Security: Three KC Men Indicted for Multi-State Business Burglary Conspiracy

    Source: Office of United States Attorneys

    KANSAS CITY, Mo. – Three Kansas City, Mo., men have been indicted by a federal grand jury for their roles in a conspiracy to burglarize beauty product and liquor stores across seven states.

    Gary Bailey, 24, Jermaine Threat, 25, and Dalvin Poindexter, 26, were charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Feb. 4, 2024. That indictment was unsealed and made public today following the arrest and initial court appearances of Bailey and Poindexter.

    The federal indictment alleges that Bailey, Threat, and Poindexter stole hundreds of thousands of dollars’ worth of merchandise during a series of business burglaries from March 2023 to January 2024.

    According to the indictment, the conspirators targeted beauty product and liquor stores in Missouri, Illinois, Iowa, Kansas, Nebraska, Indiana, and Texas. The conspirators smashed the storefront door or window glass to enter the stores afterhours and then stole fragrances, cosmetics, liquor, spirits, and other merchandise. The conspirators allegedly used posts on Facebook Marketplace and Facebook Stories, as well as group chat text messages, to sell the stolen goods and received payment in cash or through peer-to-peer payment services like CashApp. The indictment says they also kept some of the stolen items for themselves or gave it away to their friends and family.

    In addition to the conspiracy, Bailey, Threat, and Poindexter are charged together in seven counts of transporting stolen property across state lines.

    The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

    This case is being prosecuted by Assistant U.S. Attorney John Constance. It was investigated by IRS-Criminal Investigation and the Olathe, Kansas, Police Department, with assistance from the Missouri State Highway Patrol, the Platte County Sheriff’s Office and the police departments of Derby, KS, Belton, MO, Blue Springs, MO, Columbia, MO, Creve Coeur, MO, Edwardsville, KS, Fairview Heights, IL, Kansas City, MO, Kansas City, KS, Lawrence, KS, Leawood, KS, Lee’s Summit, MO, Lenexa, KS, Liberty, MO, Olathe, KS, Omaha, NE, Overland, Park, KS, Papillion, NE, Parkville, MO, Plainfield, IN, Plano, TX, Platte City, MO, Shawnee, KS, Springfield, MO, St. Joseph, MO, Terre Haute, IN, Topeka, KS, and West Des Moines, IA.

    MIL Security OSI –

  • MIL-OSI Security: Former Employee of Augusta National Golf Club Sentenced to a Year in Prison for Stealing Masters Golf Tournament Merchandise and Memorabilia

    Source: Office of United States Attorneys

    CHICAGO — A former employee of the Augusta National Golf Club in Georgia was sentenced today to a year in federal prison for stealing millions of dollars’ worth of Masters golf tournament merchandise and memorabilia and selling it to online brokers.

    RICHARD BRENDAN GLOBENSKY, 40, of Evans, Ga., pleaded guilty last year in U.S. District Court in Chicago to a federal charge of transporting and transferring stolen goods in interstate commerce.  In addition to the prison term, U.S. District Judge Sharon Johnson Coleman today ordered Globensky to pay $3,448,842 in restitution to Augusta National.

    The sentence was announced by Morris Pasqual, Acting 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.  Valuable assistance was provided by the FBI’s Art Crime Team.

    Globensky admitted in a plea agreement that he stole the merchandise and memorabilia from 2009 to 2022 while he was employed by the club as a warehouse assistant. The merchandise included Masters shirts, hats, flags, watches, and other goods, while the memorabilia included historically significant items, such as the Green Jackets awarded to tournament winners Arnold Palmer, Gene Sarazen, and Ben Hogan.  Globensky sold the merchandise to an online broker in Florida for a total of approximately $5.3 million.  He sold the historically significant memorabilia to the same broker, as well as to the broker’s associate, for nearly $300,000.  The brokers later re-sold the stolen merchandise and memorabilia, often at significant markups from the amounts paid to Globensky.  At least one of the stolen items was purchased by a collector in Chicago.

    During the last six years of the crime, Globensky spent more than $370,000 to purchase five vehicles and a motorboat, as well as more than $160,000 for Walt Disney-themed vacations and related activities.  Globensky also spent nearly $600,000 on construction of a custom-built residence in Georgia and approximately $32,000 at luxury retailer Louis Vuitton.

    “The funds Globensky obtained enabled him and his spouse to live a lifestyle far beyond their means,” Assistant U.S. Attorney Brian Hayes argued in the government’s sentencing memorandum.  “The manner in which he spent the proceeds suggests greed was his primary motivation for committing the offense.”

    MIL Security OSI –

  • MIL-OSI Security: Human Smuggling Foot Guide Convicted of 2 Counts by Federal Jury in Del Rio

    Source: Office of United States Attorneys

    DEL RIO, Texas – A federal jury in Del Rio convicted Nicacio Arellano-Garcia today for one count of conspiracy to transport illegal aliens and one count of illegal alien transportation placing lives in jeopardy.

    According to court documents and evidence presented at trial, Arellano-Garcia, 34, of Mexico, conspired to transport five illegal aliens with codefendant Alexander Galvez-Zelaya, 30, of Honduras, and other facilitators. Arellano-Garcia served as the foot guide, while Galvez-Zelaya was the driver.

    Arellano-Garcia walked the five illegal aliens through the brush for two days. One of the illegal aliens fainted just before getting picked up by Galvez-Zelaya and, at some point before or entering the vehicle, the alien died. A medical examiner later confirmed the deceased illegal alien died from a combination of dehydration and environmental exposure to walking in the brush.

    On Feb. 11, 2024, the illegal aliens and the foot guide were picked up in the vehicle driven by Galvez-Zelaya. A high speed chase with law enforcement ensued when a Zavala County Sheriff’s Office deputy attempted to conduct a traffic stop for defective license plate lighting. Galvez-Zelaya exceeded speeds of 100 miles per hour and crashed into a private property fence near La Pryor. Both Arellano-Garcia and Galvez-Zelaya were arrested and confirmed to be illegally present in the United States.

    Galvez-Zelaya pleaded guilty Nov. 4, 2024 to one count of conspiracy to transport aliens placing lives in jeopardy and is scheduled to be sentenced May 28. Both defendants face up to 20 years in federal prison for each count.

    Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.

    Homeland Security Investigations is investigating the case.

    Assistant U.S. Attorneys Warsame Galaydh and Matt Kass are prosecuting the case.

    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).

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    MIL Security OSI –

  • MIL-OSI: TWFG Announces Fourth Quarter 2024 and Full Year Results

    Source: GlobeNewswire (MIL-OSI)

    – Total Revenues increased 30.8% for the quarter over the prior year period to $51.7 million –
    – Total Written Premium increased 20.0% for the quarter over the prior year period to $361.4 million –
    – Organic Revenue Growth Rate* of 20.5% for the quarter –
    – Diluted Earnings Per Share and Adjusted Diluted Earnings Per Share* of $0.11 and $0.19 for the quarter, respectively –
    – Adjusted EBITDA* increased 91.7% for the quarter over the prior year period to $13.8 million –

    THE WOODLANDS, Texas, March 19, 2025 (GLOBE NEWSWIRE) — TWFG, Inc. (“TWFG”, the “Company” or “we”) (NASDAQ: TWFG), a high-growth insurance distribution company, today announced results for the fourth quarter and the full year ended December 31, 2024.

    Fourth Quarter 2024 Highlights

    • Total revenues for the quarter increased 30.8% to $51.7 million, compared to $39.6 million in the prior year period
    • Net income for the quarter was $8.2 million, compared to $5.2 million in the prior year period
    • Commission income for the quarter increased 20.7% to $43.7 million, compared to $36.2 million in the prior year period
    • Contingent income for the quarter increased 371.4% to $5.0 million, compared to $1.1 million in the prior year period
    • Total Written Premium for the quarter increased 20.0% to $361.4 million, compared to $301.4 million in the prior year period
    • Organic Revenue Growth Rate* for the quarter was 20.5%
    • Adjusted Net Income* for the quarter increased 57.0% from the prior year period to $10.5 million, and Adjusted Net Income Margin* for the quarter was 20.3%
    • Adjusted EBITDA* for the quarter increased 91.7% over the prior year period to $13.8 million, and Adjusted EBITDA Margin* for the quarter was to 26.8% compared to 18.3% in the prior year period
    • Cash flow from operating activities for the quarter was $11.6 million, compared to $6.1 million in the prior year period
    • Adjusted Free Cash Flow* for the quarter was $5.7 million, compared to $6.0 million in the same prior year period

    Full Year 2024 Highlights

    • Total revenues for the year increased 18.4% to $203.8 million, compared to $172.0 million in the prior year period
    • Net income for the year was $28.6 million, compared to $26.1 million in the prior year period
    • Commission income for the year increased 15.4% to $183.2 million, compared to $158.7 million in the prior year period
    • Contingent income for the year increased 113.5% to $8.7 million, compared to $4.1 million in the prior year period
    • Total Written Premium for the year increased 18.3% to $1.5 billion, compared to $1.2 billion in the prior year period
    • Organic Revenue Growth Rate* for the year was 14.5%
    • Adjusted Net Income* for the year increased 9.8% from the prior year period to $33.0 million, and Adjusted Net Income Margin* for the year was 16.2%
    • Adjusted EBITDA* for the year increased 44.7% over the prior year period to $45.3 million, and Adjusted EBITDA Margin* for the year was 22.3% compared to 18.2% in the prior year period
    • Cash flow from operating activities for the year was $40.5 million, compared to $30.2 million in the prior year period
    • Adjusted Free Cash Flow* for the year was $28.2 million, compared to $19.7 million in the prior year period

    *Organic Revenue Growth Rate, Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Free Cash Flow and Adjusted Diluted Earnings Per Share are non-GAAP measures. Reconciliations of Organic Revenue Growth Rate to total revenue growth rate, Adjusted Net Income and Adjusted EBITDA to net income, Adjusted Diluted Earnings Per Share to diluted earnings per share, and Adjusted Free Cash Flow to cash flow from operating activities, the most directly comparable financial measures presented in accordance with GAAP, are outlined in the reconciliation table accompanying this release.

    Gordy Bunch, Founder, Chairman, and CEO said “Our fourth quarter results demonstrate the continued success of our agents, carriers, employees, and business model with total revenues increasing by 30.8% over the prior year period and Adjusted EBITDA increasing by 91.7%. We generated 20.5% of organic growth and increased our Adjusted EBITDA Margin to 26.8%.

    In addition, our fourth quarter recruiting efforts continued to outpace our historical growth trends. Our continued expansion throughout the US was fueled by both recruitment of start-up agencies and strategic acquisitions in the following states Colorado, Connecticut, Idaho, Indiana, Missouri, Nevada, New Mexico, Oregon, South Carolina, South Dakota, Tennessee, Utah, Vermont, Washington and Wyoming.

    Finally, I want to remind our fellow stockholders that experienced agents typically take between two to three years to become productive. We do not expect the 100-plus new branches we launched in 2024 to have a significant impact on revenues this year or next, but over the long term we expect the agents onboarded in 2024 to contribute meaningfully to our longer-term organic growth.”

    Fourth Quarter 2024 Results

    For the fourth quarter of 2024, Total Written Premium was $361.4 million, a 20.0% increase compared to the same period in the prior year. Revenues were $51.7 million, an increase of 30.8% compared to the same period in the prior year. Organic Revenues, a non-GAAP measure that excludes contingent income, fee income, and other income, for the fourth quarter of 2024 were $43.6 million compared to $34.8 million in the same period in the prior year. Organic Revenue Growth Rate in the fourth quarter was 20.5%, driven by strong new business growth, moderating retention levels, rate increases and an uptick in new business growth with one of our MGA programs.

    Total commission expense for the fourth quarter of 2024 was $28.9 million, a 11.2% increase from $26.0 million in the same period in the prior year. Commission expenses increased primarily due to the growth in the business, partially offset by the conversion of nine branches to corporate branches, which transitioned our non-employee commission-based colleagues to employees. Upon conversion, these corporate branch employees received salaries, employee benefits, and bonuses for services rendered instead of commissions. Salaries and employee benefits for the fourth quarter of 2024 were $7.7 million, up 97.8% from $3.9 million in the same period in the prior year. Approximately $1.0 million of the increase was due to equity compensation expense, while $3.0 million of the increase was due to the branch conversions and 2023 corporate branch acquisitions, along with the growth in the business. Other administrative expenses for the fourth quarter of 2024 were $5.0 million, a 69.9% increase compared to the same period in the prior year. The increase was due to growth in the business, increase in corporate branches and the absorption of public company costs.

    For the fourth quarter of 2024, net income was $8.2 million, and net income margin was 15.8%, compared to net income of $5.2 million and net income margin of 13.2%, in the same period in the prior year. Adjusted Net Income for the fourth quarter of 2024 was $10.5 million, compared to $6.7 million in the same period in the prior year. Adjusted Net Income Margin for the fourth quarter was 20.3%, compared to 16.9% in the same period in the prior year.

    Adjusted EBITDA for the fourth quarter was $13.8 million, an increase of 91.7% over the same period in the prior year. Our Adjusted EBITDA Margin was 26.8% in the fourth quarter of 2024 compared to 18.3% in the same period in the prior year.

    Cash flow from operating activities for the fourth quarter was $11.6 million, compared to $6.1 million in the same period in the prior year.

    Adjusted Free Cash Flow for the fourth quarter of 2024 was $5.7 million, compared to $6.0 million in the same period in the prior year.

    Liquidity and Capital Resources

    As of December 31, 2024, the Company had cash and cash equivalents of $195.8 million. We had $50.0 million unused capacity on our revolving credit facility of $50.0 million as of December 31, 2024. The total outstanding term notes payable balance was $5.9 million as of December 31, 2024.

    2025 Outlook

    Our guidance for the full year 2025 is as follows:

    • Organic Revenue Growth rate* for the full year 2025 is expected to be in the range of 11% to 16%
    • Adjusted EBITDA Margin* for the full year 2025 is expected to be in the range of 19% to 21%
    • Total revenues are expected to be between $235 million and $250 million

    The Company is unable to provide a reconciliation to the most directly comparable GAAP measures without unreasonable efforts due to the inherent difficulty in forecasting the timing of items that have not yet occurred, as well as quantifying certain amounts that are necessary for such reconciliation.

    *For a definition of Organic Revenue Growth rate and Adjusted EBITDA Margin, see “Non-GAAP Financial Measures” below.

    2025 Acquisitions

    We began 2025 acquiring two new corporate locations in Ohio and Texas. The new locations are in line with our acquisition expectations for revenue and EBITDA. Our robust pipeline provides us many quality acquisition targets to achieve the remainder of our 2025 M&A goals. Our M&A models included beginning 2025 with acquiring $3 million of revenues and $0.7 million of EBITDA with an additional $20 million of revenue and $5 million of EBITDA being acquired with a mid-year convention.

    Conference Call Information

    TWFG will host a conference call and webcast tomorrow at 10:00 AM ET to discuss these results.

    To access the call by phone, participants should register at this link, where they will be provided with the dial in details. A live webcast of the conference call will also be available on TWFG’s investor relations website at investors.twfg.com. A webcast replay of the call will be available at investors.twfg.com for one year following the call.

    About TWFG

    TWFG (NASDAQ: TWFG) is a high-growth, independent distribution platform for personal and commercial insurance in the United States and represents hundreds of insurance carriers that underwrite personal lines and commercial lines risks. For more information, please visit twfg.com.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. All statements, other than statements of historical fact included in this release, are forward-looking statements. Forward-looking statements give our current expectations relating to our financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “outlook,” “predicts,” “potential” or “continue,” the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including those factors discussed under the captions entitled “Risk factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus (the “IPO Prospectus”) relating to our Registration Statement on Form S-1, as amended (Registration No. 333-280439), filed with the U.S. Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, and in our other filings with the SEC. You should specifically consider the numerous risks outlined under “Risk factors” in the IPO Prospectus.

    Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Non-GAAP Financial Measures and Key Performance Indicators

    Non-GAAP Financial Measures

    Organic Revenue, Organic Revenue Growth, Adjusted Net Income, Adjusted Net Income Margin, Adjusted Diluted Earnings Per Share, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow included in this release are not measures of financial performance in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and should not be considered substitutes for GAAP measures, including revenues (for Organic Revenue and Organic Revenue Growth), net income (for Adjusted Net Income, Adjusted Net Income Margin, Adjusted EBITDA and Adjusted EBITDA Margin) diluted earnings per share (Adjusted Diluted Earnings Per Share), and cash flow from operating activities (for Adjusted Free Cash Flow) which we consider to be the most directly comparable GAAP measures. These non-GAAP financial measures have limitations as analytical tools, and when assessing our operating performance, you should not consider these non-GAAP financial measures in isolation or as substitutes for revenues, net income, operating cash flow or other consolidated financial statement data prepared in accordance with GAAP. Other companies may calculate any or all of these non-GAAP financial measures differently than we do, limiting their usefulness as comparative measures.

    Organic Revenue. Organic Revenue is total revenue (the most directly comparable GAAP measure) for the relevant period, excluding contingent income, fee income, other income and those revenues generated from acquired businesses with over $0.5 million in annualized revenue that have not reached the twelve-month owned milestone.

    Organic Revenue Growth. Organic Revenue Growth is the change in Organic Revenue period-to-period, with prior period results adjusted to include revenues that were excluded in the prior period because the relevant acquired businesses had not reached the twelve-month-owned milestone but have reached the twelve-month owned milestone in the current period. We believe Organic Revenue Growth is an appropriate measure of operating performance because it eliminates the impact of acquisitions, which affects the comparability of results from period to period.

    Adjusted Net Income. Adjusted Net Income is a supplemental measure of our performance and is defined as net income (the most directly comparable GAAP measure) before amortization, non-recurring or non-operating income and expenses, including equity-based compensation, adjusted to assume a single class of stock (Class A) and assuming noncontrolling interests do not exist. We believe Adjusted Net Income is a useful measure because it adjusts for the after-tax impact of significant one-time, non-recurring items and eliminates the impact of any transactions that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments generally eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance.

    We are subject to U.S. federal income taxes, in addition to state, and local taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. Adjusted Net Income pre-IPO did not reflect adjustments for income taxes since TWFG Holding Company, LLC is a limited liability company and is classified as a partnership for U.S. federal income tax purposes. Post-IPO, the calculation incorporates the impact of federal and state statutory tax rates on 100% of our adjusted pre-tax income as if the Company owned 100% of TWFG Holding Company, LLC.

    Adjusted Net Income Margin. Adjusted Net Income Margin is Adjusted Net Income divided by total revenues. We believe that Adjusted Net Income Margin is a useful measurement of operating profitability for the same reasons we find Adjusted Net Income useful and also because it provides a period-to-period comparison of our after-tax operating performance.

    Adjusted Diluted Earnings Per Share. Adjusted Diluted Earnings Per Share is Adjusted Net Income divided by diluted shares outstanding after adjusting for the effect of (i) the exchange of 100% of the outstanding Class B common stock of the Company (the “Class B Common Stock”) and Class C common stock of the Company (the “Class C Common Stock”) (together with the related limited liability units in TWFG Holding Company, LLC (the “LLC Units”)) into shares of Class A common stock of the Company (“Class A Common Stock”) and (ii) the vesting of 100% of the unvested equity awards and exchange into shares of Class A Common Stock. This measure does not deduct earnings related to the noncontrolling interests in TWFG Holding Company, LLC for the period prior to July 19, 2024, when we did not own 100% of the business. The most directly comparable GAAP financial metric is diluted earnings per share. We believe Adjusted Diluted Earnings Per Share may be useful to an investor in evaluating our operating performance and efficiency because this measure is widely used by investors to measure a company’s operating performance without regard to items excluded from the calculation of such measure, which can vary substantially from company to company depending upon acquisition activity and capital structure. This measure also eliminates the impact of expenses that do not relate to core business performance, among other factors.

    Adjusted EBITDA. Adjusted EBITDA is a supplemental measure of our performance and is defined as EBITDA adjusted to reflect items such as equity-based compensation, interest income, other non-operating and certain nonrecurring items. EBITDA is defined as net income (the most directly comparable GAAP measure) before interest, income taxes, depreciation, and amortization. We believe that Adjusted EBITDA is an appropriate measure of operating performance because it adjusts for significant one-time, non-recurring items and eliminates the ongoing accounting effects of certain capital spending and acquisitions, such as depreciation and amortization, that do not directly affect what management considers to be our ongoing operating performance in the period. These adjustments eliminate the effects of certain items that may vary from company to company for reasons unrelated to overall operating performance. Our measure of Adjusted EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

    Adjusted EBITDA Margin. Adjusted EBITDA Margin is Adjusted EBITDA divided by total revenue. We believe that Adjusted EBITDA Margin is a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful and also because it provides a period-to-period comparison of our operating performance.

    Adjusted Free Cash Flow. Adjusted Free Cash Flow is a supplemental measure of our performance. We define Adjusted Free Cash Flow as cash flow from operating activities (the most directly comparable GAAP measure) less cash payments for tax distributions, purchases of property, plant, and equipment and acquisition-related costs. We believe Adjusted Free Cash Flow is a useful measure of operating performance because it represents the cash flow from the business that is within our discretion to direct to activities including investments, debt repayment, and returning capital to stockholders.

    The reconciliation of the above non-GAAP measures to their most comparable GAAP financial measure is outlined in the reconciliation table accompanying this release.

    Key Performance Indicators

    Total Written Premium. Total Written Premium represents, for any reported period, the total amount of current premium (net of cancellation) placed with insurance carriers. We utilize Total Written Premium as a key performance indicator when planning, monitoring, and evaluating our performance. We believe Total Written Premium is a useful metric because it is the underlying driver of the majority of our revenue.

    Contacts
    Investor Contact:
    Gene Padgett, CAO for TWFG
    Email: gene.padgett@twfg.com

    PR Contact:
    Alex Bunch, CMO for TWFG
    Email: alex@twfg.com

    Consolidated Statements of Income (Unaudited)
    (Amounts in thousands, except share and per share data)

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2023   2024   2023
    Revenues              
    Commission income(1) $ 43,711   $ 36,228     $ 183,158   $ 158,679  
    Contingent income   5,005     1,062       8,722     4,085  
    Fee income(2)   2,751     1,968       10,562     8,311  
    Other income   276     313       1,318     968  
    Total revenues   51,743     39,571       203,760     172,043  
    Expenses              
    Commission expense   28,915     25,994       118,086     116,847  
    Salaries and employee benefits   7,663     3,874       29,064     13,970  
    Other administrative expenses(3)   4,978     2,930       16,665     10,973  
    Depreciation and amortization   3,054     1,522       12,020     4,862  
    Total operating expenses   44,610     34,320       175,835     146,652  
    Operating income   7,133     5,251       27,925     25,391  
    Interest expense   98     450       2,223     1,003  
    Interest income   2,174     421       4,376     891  
    Other non-operating income (expense), net   1     (7 )     9     (17 )
    Income before tax   9,210     5,215       30,087     25,262  
    Income tax expense   1,057     —       1,495     —  
    Net income from continuing operations   8,153     5,215       28,592     25,262  
    Net income from discontinued operation, net of tax   —     —       —     834  
    Net income   8,153     5,215       28,592     26,096  
    Less: net income attributable to noncontrolling interests   6,561     5,215       25,847     26,096  
    Net income attributable to TWFG, Inc. $ 1,592   $ —     $ 2,745   $ —  
                   
    Weighted average shares of common stock outstanding:              
    Basic   14,811,874         14,772,115    
    Diluted   15,056,430         14,982,409    
    Earnings per share:              
    Basic $ 0.11       $ 0.19    
    Diluted $ 0.11       $ 0.19    
     

    (1) Commission income – related party of $3,562 and $1,139 for the three months ended and $9,609 and $4,203 for the twelve months ended December 31, 2024 and 2023, respectively
    (2) Fee income – related party of $905 and $335 for the three months ended and $2,704 and $1,593 for the twelve months ended December 31, 2024 and 2023, respectively
    (3) Other administrative expenses – related party of $326 and $145 for the three months ended and $1,478 and $415 for the twelve months ended December 31, 2024 and 2023, respectively

    Consolidated Balance Sheets (Unaudited)
    (Amounts in thousands, except share/unit data)

      December 31, 2024   December 31, 2023
    Assets
    		      
    Current assets
    		      
    Cash and cash equivalents $ 195,772   $ 39,297
    Restricted cash   9,551     7,171
    Commissions receivable, net   27,067     19,082
    Accounts receivable   7,839     5,982
    Deferred offering costs   —     2,025
    Other current assets   1,619     1,551
    Total current assets   241,848     75,108
    Non-current assets
    		      
    Intangible assets, net   72,978     36,436
    Property and equipment, net   3,499     597
    Lease right-of-use assets, net   4,493     2,459
    Other non-current assets   610     837
    Total assets $ 323,428   $ 115,437
           
    Liabilities and Equity
    		      
    Current liabilities
    		      
    Commissions payable $ 13,848   $ 12,487
    Carrier liabilities   12,392     8,731
    Operating lease liabilities, current   1,013     882
    Short-term bank debt   1,912     2,437
    Deferred acquisition payable, current   601     5,369
    Other current liabilities   9,851     5,006
    Total current liabilities   39,617     34,912
    Non-current liabilities
    		      
    Operating lease liabilities, net of current portion   3,372     1,518
    Long-term bank debt   4,007     46,919
    Deferred acquisition payable, non-current   1,122     1,037
    Other non-current liabilities   24     —
    Total liabilities   48,142     84,386
    Commitment and contingencies      
    Stockholders’/Members’ Equity
    		      
    Members’ Equity (631,750 common units issued and outstanding at December 31, 2023)   —     632
    Class A common stock ($0.01 par value per share – 300,000,000 authorized, 14,811,874 shares issued and outstanding at December 31, 2024)   148     —
    Class B common stock ($0.00001 par value per share – 100,000,000 authorized, 7,277,651 shares issued and outstanding at December 31, 2024)   —     —
    Class C common stock ($0.00001 par value per share – 100,000,000 authorized, 33,893,810 shares issued and outstanding at December 31, 2024)   —     —
    Additional paid-in capital   58,365     25,114
    Retained earnings   15,288     4,805
    Accumulated other comprehensive income   83     500
    Total stockholders’ equity attributable to TWFG, Inc. /members’ equity   73,884     31,051
    Noncontrolling interests   201,402     —
    Total stockholders’/members’ equity   275,286     31,051
      Total liabilities and equity $ 323,428   $ 115,437
             
     

    Non-GAAP Financial Measures

    A reconciliation of Organic Revenue and Organic Revenue Growth Rate to Total Revenue and Total Revenue Growth Rate, the most directly comparable GAAP measures, is as follows (in thousands):

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Acquisition adjustments(1)   (105 )     (1,405 )     (3,687 )     (4,052 )
    Contingent income   (5,005 )     (1,062 )     (8,722 )     (4,085 )
    Fee income   (2,751 )     (1,968 )     (10,562 )     (8,311 )
    Other income   (276 )     (313 )     (1,318 )     (968 )
    Organic Revenue $ 43,606     $ 34,823     $ 179,471     $ 154,627  
    Organic Revenue Growth(2) $ 7,429     $ 2,527     $ 22,746     $ 15,514  
    Total Revenue Growth Rate(3)   30.8 %     7.3 %     18.4 %     11.8 %
    Organic Revenue Growth Rate(2)   20.5 %     7.8 %     14.5 %     11.2 %
                   
     

    (1) Represents revenues generated from the acquired businesses during the first 12 months following an acquisition.
    (2) Organic Revenue for the three months ended December 31, 2023 and 2022, and for the twelve months ended December 31, 2023 and 2022, used to calculate Organic Revenue Growth for the three months ended December 31, 2024 and 2023, and for the twelve months ended December 31, 2024 and 2023, was $36.2 million, $32.3 million, $156.7 million and $139.1 million, respectively, which is adjusted to reflect revenues from acquired businesses with over $0.5 million in annualized revenue that reached the twelve-month owned mark during the year ended December 31, 2024 and 2023, respectively. Organic Revenue Growth Rate represents the period-to-period change in Organic Revenue divided by the total adjusted Organic Revenue in the prior period.
    (3) Represents the period-to-period change in total revenues divided by the total revenues in the prior period.

    Applying the use of enhanced data consistently throughout the prior periods, revenue growth rate for the three months ended and twelve months ended December 31, 2023 compared to the same period in 2022 would have been 9.9% and 14.9%, respectively, and Organic Revenue Growth Rate for the three months ended and twelve months ended December 31, 2023 compared to the same period in 2022 would have been 10.7% and 14.5%, respectively.

    A reconciliation of Adjusted Net Income and Adjusted Net Income Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

    Revised Calculation Methodology Applied to Current Period
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Net income $ 8,153     $ 5,215     $ 28,592     $ 26,096  
    Income tax expense   1,057       —       1,495       —  
    Acquisition-related expenses   20       36       20       204  
    Restructuring and related expenses   —       —       —       17  
    Discontinued operation income   —       —       —       (834 )
    Equity-based compensation   1,207       —       2,219       —  
    Other non-recurring items(1)   257       —       (1,220 )     —  
    Amortization expense   2,950       1,451       11,721       4,594  
    Adjusted income before income taxes   13,644       6,702       42,827       30,077  
    Adjusted income tax expense(2)   (3,123 )     —       (9,802 )     —  
    Adjusted Net Income $ 10,521     $ 6,702     $ 33,025     $ 30,077  
    Net Income Margin   15.8 %     13.2 %     14.0 %     15.2 %
    Adjusted Net Income Margin   20.3 %     16.9 %     16.2 %     17.5 %
                   
     
    Legacy Calculation Methodology Applied to Current Period
      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Net income $ 8,153     $ 5,215     $ 28,592     $ 26,096  
    Income tax expense   1,057       —       1,495       —  
    Acquisition-related expenses   20       36       20       204  
    Restructuring and related expenses   —       —       —       17  
    Discontinued operation income   —       —       —       (834 )
    Equity-based compensation   1,207       —       2,219       —  
    Other non-recurring items(1)   257       —       (1,220 )     —  
    Adjusted income before income taxes   10,694       5,251       31,106       25,483  
    Adjusted income tax expense(2)   (2,447 )     —       (7,119 )     —  
    Adjusted Net Income $ 8,247     $ 5,251     $ 23,987     $ 25,483  
    Net Income Margin   15.8 %     13.2 %     14.0 %     15.2 %
    Adjusted Net Income Margin   15.9 %     13.3 %     11.8 %     14.8 %
                   
     

    (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
    (2) Post-IPO, we are subject to United States federal income taxes, in addition to state, local, and foreign taxes, with respect to our allocable share of any net taxable income of TWFG Holding Company, LLC. For the three and twelve months ended December 31, 2024, the calculation of adjusted income tax expense is based on a federal statutory rate of 21% and a blended state income tax rate of 1.88% on 100% of our adjusted income before income taxes as if we owned 100% of the TWFG Holding Company, LLC.

    A reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin to Net Income and Net Income Margin, the most directly comparable GAAP measures, for each of the periods indicated is as follows (in thousands):

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Total revenues $ 51,743     $ 39,571     $ 203,760     $ 172,043  
    Net income $ 8,153     $ 5,215     $ 28,592     $ 26,096  
    Interest expense   98       450       2,223       1,003  
    Interest income(2)   2,174       421       4,376       891  
    Depreciation and amortization   3,054       1,522       12,020       4,862  
    Income tax expense   1,057       —       1,495       —  
    EBITDA   10,188       6,766       39,954       31,070  
    Acquisition-related expenses   20       36       20       204  
    Restructuring and related expenses   —       —       —       17  
    Equity-based compensation   1,207       —       2,219       —  
    Interest income(2)   2,174       421       4,376       891  
    Discontinued operation income   —       —       —       (834 )
    Other non-recurring items(1)   257       —       (1,220 )     —  
    Adjusted EBITDA $ 13,846     $ 7,223     $ 45,349     $ 31,348  
    Net Income Margin   15.8 %     13.2 %     14.0 %     15.2 %
    Adjusted EBITDA Margin   26.8 %     18.3 %     22.3 %     18.2 %
                   
     

    (1) Represents a one-time adjustment reducing commission expense, which resulted from the branch conversions. In January 2024, nine of our Branches converted to Corporate Branches. Upon conversion, agents of the newly converted Corporate Branches became employees and received salaries, employee benefits, and bonuses for services rendered instead of commissions. As a result, we released a portion of the unpaid commissions related to the converted branches that we no longer are required to settle.
    (2) Interest income reflects interest and other earnings on cash balances held by the Company. This income is included in Adjusted EBITDA as we view our total interest and investment income as an integral part of our business model and earnings stream until deployed. 

    A reconciliation of Adjusted Free Cash Flow to Cash Flow from Operating Activities, the most directly comparable GAAP measure, for each of the periods indicated is as follows (in thousands):

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
        2024       2023       2024       2023  
    Cash Flow from Operating Activities $ 11,600     $ 6,051     $ 40,479     $ 30,154  
    Purchase of property and equipment   (2,921 )     (43 )     (3,201 )     (260 )
    Tax distribution to members(1)   (3,002 )     —       (9,106 )     (9,526 )
    Acquisition-related expenses   —       36       20       204  
    Net cash flow provided by operating activities from discontinued operation   —       —       —       (839 )
    Adjusted Free Cash Flow $ 5,677     $ 6,044     $ 28,192     $ 19,733  
                   
     

    (1) Tax distributions to members represents the amount distributed to the members of TWFG Holding Company, LLC in respect of their income tax liability related to the net income of TWFG Holding Company, LLC allocated to its members.

    A reconciliation of Adjusted Diluted Earnings Per Share to diluted earnings per share, the most directly comparable GAAP measure, is as follows:

      Three Months Ended
    December 31,    		   Twelve Months Ended
    December 31,
      2024   2024
    Earnings per share of common stock – diluted $ 0.11   $ 0.19
    Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)   0.04     0.32
    Plus: Adjustments to Adjusted net income(2)   0.04     0.08
    Adjusted Diluted Earnings Per Share $ 0.19   $ 0.59
           
    Weighted average common stock outstanding – diluted   15,056,430     14,982,409
    Plus: Impact of all LLC Units exchanged for Class A Common Stock(1)   41,171,461     41,171,461
    Adjusted Diluted Earnings Per Share diluted share count   56,227,891     56,153,870
           
     

    (1) For comparability purposes, this calculation incorporates the net income that would be distributable if all shares of Class B Common Stock and Class C Common Stock, together with the related LLC Units, were exchanged for shares of Class A Common Stock. For the three months ended and twelve months ended December 31, 2024, this includes $6.6 million and $25.8 million of net income, respectively, on 56,227,891 and 56,153,870 weighted-average shares of common stock outstanding – diluted, for the three and twelve months ended December 31, 2024, respectively. For both the three months ended and twelve months ended December 31, 2024, 41,171,461 weighted average outstanding Class B Common Stock and Class C Common Stock were considered dilutive and included in the 56,227,891 and 56,153,870 weighted-average shares of common stock outstanding – diluted within diluted earnings per share calculation.

    (2) Adjustments to Adjusted Net Income are described in the footnotes of the reconciliation of Adjusted Net Income to Net Income in “Adjusted Net Income and Adjusted Net Income Margin”, which represent the difference between Net Income of $8.2 million and $28.6 million and Adjusted Net Income of $10.5 million and $33.0 million for the three and twelve months ended December 31, 2024, respectively. For the three and twelve months ended months ended December 31, 2024, Adjusted Diluted Earnings Per Share include adjustments of $2.3 million and $4.4 million to Adjusted Net Income, respectively, on 56,227,891 and 56,153,870 weighted-average shares of common stock outstanding – diluted for both periods presented, respectively.

    Key Performance Indicators

    The following presents the disaggregation of Total Written Premium by offerings, business mix and line of business (in thousands):

      Three Months Ended December 31,   Twelve Months Ended December 31,
        2024       2023       2024       2023  
      Amount   % of Total   Amount   % of Total   Amount   % of Total   Amount   % of Total
    Offerings:
    		                              
    Insurance Services                              
    Agency-in-a-Box $ 246,116   68 %   $ 237,678   79 %   $ 982,815   66 %   $ 998,938   80 %
    Corporate Branches   61,642   17       18,806   6       275,331   19       53,963   4  
    Total Insurance Services   307,758   85       256,484   85       1,258,146   85       1,052,901   84  
    TWFG MGA   53,602   15       44,961   15       218,214   15       195,194   16  
    Total written premium $ 361,360   100 %   $ 301,445   100 %   $ 1,476,360   100 %   $ 1,248,095   100 %
                                   
    Business Mix:
    		                              
    Insurance Services                              
    Renewal business $ 236,033   65 %   $ 203,338   67 %   $ 975,657   66 %   $ 827,112   66 %
    New business   71,725   20       53,146   18       282,489   19       225,789   18  
    Total Insurance Services   307,758   85       256,484   85       1,258,146   85       1,052,901   84  
    TWFG MGA                              
    Renewal business   37,741   10       37,797   13       163,105   11       165,348   13  
    New business   15,861   5       7,164   2       55,109   4       29,846   3  
    Total TWFG MGA   53,602   15       44,961   15       218,214   15       195,194   16  
      Total written premium $ 361,360   100 %   $ 301,445   100 %   $ 1,476,360   100 %   $ 1,248,095   100 %
                                   
    Written Premium Retention:
    		                              
    Insurance Services     92 %       92 %       93 %       95 %
    TWFG MGA     84         88         84         89  
    Consolidated     91         91         91         94  
                                   
    Line of Business:
    		                              
    Personal lines $ 292,750   81 %   $ 239,134   79 %   $ 1,197,122   81 %   $ 997,431   80 %
    Commercial lines   68,610   19       62,311   21       279,238   19       250,664   20  
    Total written premium $ 361,360   100 %   $ 301,445   100 %   $ 1,476,360   100 %   $ 1,248,095   100 %
                                     
     

    The MIL Network –

  • MIL-OSI USA: Good To Go! warns of scam texts

    Source: Washington State News 2

    OLYMPIA – Good To Go! is asking people to be cautious as scammers are impersonating toll agencies nationwide. They are attempting to trick people into making payments and sharing their banking information.

    Good To Go! is aware of fraudulent text messages claiming to be from Good To Go! and linking to a convincing fake website mirroring the official one for that payment. The text messages were not sent by Good To Go!. Good To Go! never sends texts asking for payment.

    People who suspect they’ve received a scam text should not click on any of the links. Instead, they should log into their account as any information Good To Go! would send about a toll bill will also be visible on your account. If you do not have a Good To Go! account Good To Go! would not send you a text. Good To Go! never asks customers to pay on websites other than Good To Go! and does not charge additional fees to make a payment.

    Good To Go! encourages anyone who received a fraudulent text to file a complaint with the FBI Internet Crime Complaint Center. Be sure to include the phone number or email address from where the message was sent, and the website listed in the text of the message.

    MIL OSI USA News –

  • MIL-OSI Security: Bonanno Crime Family Soldier Sentenced to 37 Months’ Imprisonment for Extortionate Collection of Credit

    Source: Office of United States Attorneys

    Defendant Continued to Demand Payments from Victim While Facing Charges for Illegal Collection of a Debt and Under Court Supervision

    Earlier today, in federal court in Brooklyn, John Ragano, also known as “Bazoo,” a member of the Bonanno organized crime family, was sentenced by United States District Judge Hector Gonzalez to 37 months in prison for extortionate collection of credit in connection with a $150,000 loan.  The sentence imposed today will be served following the completion of Ragano’s 57-month sentence for the conspiracy to commit extortionate collection of credit of the same victim.  Additionally, as part of the sentence, Ragano was ordered to pay the government $3,000 in forfeiture.  Ragano was convicted of the charge in October 2024 following a four-day jury trial.

    John J. Durham, United States Attorney for the Eastern District of New York and Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

    “Today’s sentence punishes Ragano’s blatant disregard for the law, even while under court supervision for crimes brazenly carried out within the federal courthouse,” stated United States Attorney Durham.  “This prosecution represents my Office’s steadfast commitment to combatting the Mafia in our district.”

    “Despite previous arrests and detention, John Ragano tormented his victim to make weekly exorbitant loan payments and enforced humiliating methods when faced with resistance,” stated Acting FBI Assistant Director in Charge Backschies.  “His actions reflected his apathy to the criminal justice system as he repeatedly attempted to extort his victims in the midst of active legal proceedings. Today’s verdict emphasizes the FBI’s intolerance of the mob’s historical inclination to utilize coercive and threatening tactics to fulfill their greedy demands.

    In early 2021, the defendant Ragano loaned the victim $150,000 in cash and required the victim to make interest payments of approximately $1,800 a week.  These payments did not reduce the principal of the $150,000 loan.  On September 14, 2021, Ragano was arrested in connection with the extortionate loan to the victim, as well as separate schemes to traffic marijuana and commit fraud.  After Ragano was released on bond from the Metropolitan Detention Center in December 2021, he continued to try to collect the $150,000 loan from the victim while under pretrial supervision.  He did so by approaching the victim in-person at status conferences held at the federal courthouse, and by directing another individual (Individual #1) to contact the victim.  On November 28, 2022, Ragano pleaded guilty to conspiring to issue the extortionate loan to the victim.  However, in 2023, despite his previous guilty plea, ongoing court supervision, and sentence to 57 months’ imprisonment in connection with his previous guilty plea as to the 2021 loan, Ragano continued to extort the victim to collect payments on the 2021 loan, which resulted in a subsequent indictment for extortionate collection of credit and harassment of a witness.

    As proven during Ragano’s October 2024 trial, on March 25, 2023, the victim recorded a meeting with Individual #1, who explained that Ragano wanted the entire amount of the loan repaid and that “nobody’s looking for anybody to get hurt.” A week later, on March 31, 2023, Individual #1 told the victim that Ragano was “a little upset” that the loan was outstanding.  On July 5, 2023, the victim went to a used auto parts yard where Ragano worked to discuss the loan.  Unbeknownst to Ragano, the victim recorded the meeting.  The victim told Ragano that he was going to stop repaying the loan. Ragano accused the victim of cooperating with the government and demanded that he remove all his clothes. Ragano stated: “Okay, well then take off your f–king s–t right now my man.  Take off your f–king pants right now, lemme see, I want to see.”  At Ragano’s insistence, the victim complied and took off all his clothing. At that point, two men at the business walked up behind Ragano, one of whom was holding metal tools.  Ragano then demanded the victim pay the money the defendant believed he was owed, telling him, “You owe me my f—king money, let’s see how you’re gonna do when I get out.”  Despite being forced to strip naked, the victim was still able to record the confrontation, including Ragano’s parting words, “I’ll see you when I get out tough guy…Don’t forget I know where you’re at now.”

    The government’s case is being handled by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Devon Lash and Andrew D. Reich are in charge of the prosecution with the assistance of Paralegal Specialist Kristina Kim.  Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters.

    The Defendant:

    JOHN RAGANO (also known as “Bazoo”)
    Age:  62
    Franklin Square, Long Island

    E.D.N.Y. Docket No. 24-CR-50 (HG)

    MIL Security OSI –

  • MIL-OSI USA: Preston Man Sentenced to Prison for Possessing Child Pornography

    Source: US State of Idaho

    [BOISE] – Attorney General Raúl Labrador has announced that Michael Thomas Baird, 35, was convicted of two (2) counts of Sexual Exploitation of a Child by Possession of Sexually Exploitative Material. The Possession of Sexually Exploitative Material is a felony punishable by up to 10 years in prison. Baird was sentenced on March 13, 2025, by District Judge Cody L. Brower.
    “Removing these predators from our communities is a top priority for our office,” said Attorney General Labrador.  “Our ICAC prosecutors and investigators work tirelessly to deliver justice for these tragically young victims of abuse.  I’m continually grateful for the broad partnerships that have been built across the state to protect kids and put these offenders behind bars.”
    In July of 2024, the Internet Crimes Against Children (ICAC) Unit received a CyberTip that an account belonging to Baird had uploaded files containing child sexual abuse material (CSAM). On August 20, 2024, officers executed a search warrant on Baird’s home and seized various digital devices. Forensic examiners from the Office of the Attorney General were able to locate various files containing CSAM on devices seized during the search warrant. These files depicted predominately female children between three and eleven (3-11) years of age. Many of the images depicted children engaged in sex acts with adults. Baird was on probation for felony Aggravated Assault and felony Malicious Injury to Property at the time of his arrest.
    Judge Brower sentenced Baird to a total of fifteen (15) years in prison. Baird will be eligible for parole after five (5) years, and he will have to register as a sex offender pursuant to Idaho law.
    The case was prosecuted by Deputy Attorney General James Haws. The lead investigator on the case was Korey Payne from the Bonneville County Sheriff’s Office who serves in the Attorney General’s ICAC Unit. The successful prosecution of this case was the result of a collaborative effort lead by the Attorney General’s ICAC Unit and assisted by various law enforcement agencies across the State, including the Preston Police Department, the Frankin County Sherrif’s Office, the Madison County Sheriff’s Office, Idaho Fish and Game, and the Franklin County Prosecuting Attorney’s Office.

    MIL OSI USA News –

  • MIL-OSI USA: MEDIA ADVISORY: House Foreign Affairs Subcommittee on the Western Hemisphere Hearing

    Source: US House Committee on Foreign Affairs

    Media Contact 202-226-8467

    WASHINGTON, D.C. – The House Foreign Affairs Subcommittee on the Western Hemisphere will hold a public hearing titled, “INL Should Fight Crime, Not Fight Conservatives” on Wednesday, March 26, 2025.

    What: House Foreign Affairs Subcommittee on the Western Hemisphere Hearing

    Date: Wednesday, March 26, 2025

    Time: 2:00 p.m. ET

    Location: 2200 Rayburn

    Subject: INL Should Fight Crime, Not Fight Conservatives

    Witnesses:

     

    Ms. Chelsa Kenney

    Director 

    International Affairs and Trade

    U.S. Government Accountability Office

    Mr. Rodrigo Arenas

    Editor in Chief

    Republica.com

    ***Check here for updates. The hearing will be webcast live here and open to the public and press. Members of the media who would like to attend in-person should RSVP with Joe Clark at joseph.clark@mail.house.gov by 5 p.m. Tuesday, March 25, 2025. ***

    MIL OSI USA News –

  • MIL-OSI USA: Mississippi Man Indicted for Federal Civil Rights and Arson Charges for Setting Fire to Mormon Church

    Source: US State of North Dakota

    A federal grand jury in Gulfport, Mississippi, returned a six-count superseding indictment today charging Stefan Day, also known as Stefan Pete Day Rowold, with federal civil rights and arson violations for vandalizing and setting fire to a house of worship.

    According to the superseding indictment, on July 5, 2024, and July 7, 2024, Day set fire to The Church of Jesus Christ of Latter-Day Saints in Wiggins, Mississippi. Counts one and four of the superseding indictment charge Day with arson for setting fire to the church. Counts two and five of the superseding indictment charge Day with intentionally damaging, defacing, and destroying religious real property because of the religious character of the property. Counts three and six of the superseding indictment charge Day with using fire to commit a federal felony offense.

    If convicted, Day faces a minimum penalty of five years in prison and a maximum penalty of 20 years in prison on each of the arson charges, a maximum penalty of 20 years in prison for each of the civil rights charges, and a minimum penalty of ten years in prison for the use of fire to commit a federal felony offense.

    Deputy Assistant Attorney General Mac Warner of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Patrick Lemon for the Southern District of Mississippi, and Special Agent in Charge Robert A. Eikhoff of the FBI Jackson Field Office made the announcement.

    The FBI Jackson Field Office investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Bureau of Investigation, the Mississippi State Fire Marshal, and the Wiggins Police Department.

    Assistant U.S. Attorney Jonathan Buckner for the Southern District of Mississippi and Trial Attorney Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.

    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 –

  • MIL-OSI Security: Pictou — RCMP investigating suspicious incident in Pictou

    Source: Royal Canadian Mounted Police

    Pictou County District RCMP is asking for the public’s help in identifying a person of interest following a suspicious incident that occurred in Pictou.

    Yesterday, at approximately 10 p.m., RCMP officers responded to a report of an attempted abduction in the area of Denoon St. Investigators learned that an 18-year-old woman was walking home when she was approached by a man who offered her a ride. When the woman declined, the man exited his pickup truck and attempted to grab her.

    The victim was not physically injured and ran for help.

    The man of interest is described as white and in his 60s. At the time of the incident, he had a long white beard and was wearing a camouflage hat with an antlers emblem on the front, a camouflage jacket, and khaki pants.

    The vehicle of interest is described as a white Ford extended cab pickup with a black push bar. The truck was heavily rusted, had a very loud exhaust, and had a burned-out passenger headlight.

    Anyone with information about this incident, or with security camera footage of the area, is asked to contact the Pictou County District RCMP at 902-485-4333. 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.

    MIL Security OSI –

  • MIL-OSI USA: Attorney General Alan Wilson announces Murrells Inlet nurse charged with stealing drugs from patientsRead More

    Source: US State of South Carolina

    (COLUMBIA, S.C.) – South Carolina Attorney General Alan Wilson announced that his office’s Vulnerable Adults and Medicaid Provider Fraud unit (VAMPF) and the Department of Public Health’s Bureau of Drug Control have arrested Erin Homan, 34 years old, of Murrells Inlet, S.C., on two counts of Exploitation of a Vulnerable Adult {43-35-0085 (D)}, and two counts of Theft of a Controlled Substance, First Offense {44-53-0365(A). Homan was booked into the J. Reuben Long Detention Center on March 18, 2025.

    These charges stem from Homan’s conduct while employed as a Licensed Practical Nurse (LPN) at Angel Oak Nursing and Rehabilitation Center in Myrtle Beach on October 23, 2024. Investigators from VAMPF and the DPH Bureau of Drug Control allege that Homan, while performing her duties as an LPN, stole a quantity of Tramadol, a schedule IV controlled substance, belonging to two residents of the facility. It is further alleged that Homan unlawfully obtained the Tramadol for her own personal use and deprived the two vulnerable adult residents of their prescribed medication. 

    This case was referred to investigators by Angel Oak Nursing and Rehabilitation Center, which cooperated fully with investigators. This case will be prosecuted by the Attorney General’s Office.

    Exploitation of a Vulnerable Adult is a felony and, upon conviction, has a penalty of up to five years in prison, a fine of up to $5,000, or both. Theft of a Controlled Substance, First Offense, is a felony and, upon conviction, has a penalty of up to five years in prison, a fine of up to $5,000, or both.

    Pursuant to federal regulations, VAMPF has authority over Medicaid provider fraud; abuse and neglect of Medicaid beneficiaries in any setting; and the abuse, neglect, and exploitation of individuals residing in assisted living facilities or nursing homes. 

    Attorney General Wilson stressed all defendants are presumed innocent unless and until they are proven guilty in a court of law.

    The South Carolina Medicaid Fraud Control Unit, dba VAMPF, receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $2,889,252 for federal fiscal year 2025. The remaining 25 percent, totaling $963,084 for FFY 2025, is funded by South Carolina.

    MIL OSI USA News –

  • MIL-OSI Security: Salt River Man Convicted of Murder and Conspiracy

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

    PHOENIX, Ariz. – On Wednesday, March 12, 2025, a jury found Clifton Nez Hamalowa, 47, of the Salt River Pima-Maricopa Indian Community, guilty of First-Degree Murder, Conspiracy to Commit Assault Resulting in Serious Bodily Injury, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Discharging a Firearm During, In Relation to, and in Furtherance of a Crime of Violence. The guilty verdict followed a seven-day jury trial before United States District Court Judge John J. Tuchi.

    During trial, evidence showed that Hamalowa became angry with the victim one evening and then shot the victim in the head multiple times the following morning, August 29, 2020. Hamalowa dumped the victim’s body in a remote area of the Salt River Pima-Maricopa Indian Reservation. Meanwhile, Hamalowa’s brother disposed of the victim’s car in Parker, Arizona, and Hamalowa’s sister made her daughter clean the victim’s blood from the crime scene on the Gila River Indian Reservation. Over the next two weeks, Hamalowa and his sister also intimidated witnesses into silence. Eventually, a witness was able to contact the Gila River Police Department so that officers could rescue the victim’s minor child who was still in the victim’s home.

    Hamalowa’s brother, Thomas Leon Hamalowa, pleaded guilty to Accessory-After-the-Fact to Murder and was sentenced to 108 months in prison on October 23, 2023. Hamalowa’s sister, Devonne Beth Hamalowa, pleaded guilty to Accessory-After-the-Fact to Murder and was sentenced to 84 months in prison on April 1, 2024.

    The Federal Bureau of Investigation and Gila River Police Department jointly investigated the case. Assistant U.S. Attorneys Jennifer E. LaGrange and Travis L. Wheeler, District of Arizona, Phoenix, handled the prosecution.
     

    CASE NUMBER:           CR-22-00751-PHX-JJT
    RELEASE NUMBER:    2025-037_Hamalowa

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

    MIL Security OSI –

  • MIL-OSI Security: Stephenville — Man remains under investigation by Bay St. George RCMP for local crime spree

    Source: Royal Canadian Mounted Police

    A 31-year-old Stephenville man remains under investigation by Bay St. George RCMP for a number of crimes committed on March 17, 2025.

    Shortly after 5:00 a.m. on Monday, a pickup truck was stolen from a business on Utah Drive and, around the same time, during a break and enter at a nearby business, generators and a number of propane tanks were stolen.

    While investigating the above matters, at approximately 7:00 a.m., police received a report of a stolen all-terrain vehicle (ATV) in Fox Island River. A 2022 Can AM Outlander was stolen from a residential property. The property owner witnessed the theft and followed the suspect. Police attempted to stop the operator of the ATV, who fled the area on the stolen side by side.

    Shortly before 11:00 a.m., Bay St. George RCMP recovered the stolen pickup truck in a snow bank near Crane Place in Stephenville. The abandoned vehicle was left running and was seized as part of the investigation.

    Shortly after this, the stolen Can Am Outlander ATV was observed by its owner, traveling along the T’railway. Police attended the area and, with the assistance of the owner, the ATV was located and recovered in Heatherton. The suspect was arrested nearby without further incident.

    Following these crimes, Bay St. George RCMP received a report of a second ATV that was stolen sometime overnight from a residential property in Point Au Mal, a 2019 black and blue 800 Can Am Commander XT.

    Police are continuing to look for the stolen property, including generators, currently of an unknown make or model, propane tanks and the 2019 Can Am Commander. An image of the Can Am Commander side by side ATV is attached.

    The investigation is continuing with charges anticipated.

    Anyone having information about these crimes or the current location of the stolen property is asked to contact Bay St. George RCMP at 709-643-2118. To remain anonymous, contact Crime Stoppers: #SayItHere 1-800-222-TIPS (8477), visit www.nlcrimestoppers.com or use the P3Tips app.

    MIL Security OSI –

  • MIL-OSI Security: Two Hazleton Men Charged With Drug Trafficking

    Source: Office of United States Attorneys

    SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Cesar Altagracia Mateo Lara, a/k/a Miguel Carrasquillo Apolinaris, age 46, and Luis Mercado-Alicea, a/k/a Yensi Mateo, age 44, both of Hazleton, Pennsylvania, were indicted yesterday by a federal grand jury on drug trafficking charges.

    According to Acting United States Attorney John C. Gurganus, the indictment alleges that between November 2024 and February 2025, the defendants conspired to distribute over 40 grams of fentanyl. The indictment also alleges that during that time the defendants distributed fentanyl and possessed fentanyl with intent to distribute it.   

    The case was investigated by the Federal Bureau of Investigation, the Luzerne County District Attorney’s Office, and the Hazleton Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.

    This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.  Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.

    This case is also 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 Project Safe Neighborhood (PSN).

    The maximum penalty under federal law for this offense is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

    Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Mississippi Man Indicted for Federal Civil Rights and Arson Charges for Setting Fire to Mormon Church

    Source: United States Attorneys General

    A federal grand jury in Gulfport, Mississippi, returned a six-count superseding indictment today charging Stefan Day, also known as Stefan Pete Day Rowold, with federal civil rights and arson violations for vandalizing and setting fire to a house of worship.

    According to the superseding indictment, on July 5, 2024, and July 7, 2024, Day set fire to The Church of Jesus Christ of Latter-Day Saints in Wiggins, Mississippi. Counts one and four of the superseding indictment charge Day with arson for setting fire to the church. Counts two and five of the superseding indictment charge Day with intentionally damaging, defacing, and destroying religious real property because of the religious character of the property. Counts three and six of the superseding indictment charge Day with using fire to commit a federal felony offense.

    If convicted, Day faces a minimum penalty of five years in prison and a maximum penalty of 20 years in prison on each of the arson charges, a maximum penalty of 20 years in prison for each of the civil rights charges, and a minimum penalty of ten years in prison for the use of fire to commit a federal felony offense.

    Deputy Assistant Attorney General Mac Warner of the Justice Department’s Civil Rights Division, Acting U.S. Attorney Patrick Lemon for the Southern District of Mississippi, and Special Agent in Charge Robert A. Eikhoff of the FBI Jackson Field Office made the announcement.

    The FBI Jackson Field Office investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mississippi Bureau of Investigation, the Mississippi State Fire Marshal, and the Wiggins Police Department.

    Assistant U.S. Attorney Jonathan Buckner for the Southern District of Mississippi and Trial Attorney Chloe Neely of the Civil Rights Division’s Criminal Section are prosecuting the case.

    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 –

  • MIL-OSI Security: U.S. Marshals Fugitive Task Force Apprehends Austin Homicide Suspect Sought in December Shooting

    Source: US Marshals Service

    Austin, TX – Members of the U.S. Marshals-led Lone Star Fugitive Task Force March 13 arrested a man sought for murder that occurred Dec. 21, 2024, in Austin. 

    Juan Carlos Rodriguez-Gomez, 26, was a suspect wanted by the Austin Police Department for a homicide that occurred in the 2500 block of Huntwick Road, where a victim was reported to have been shot inside a vehicle in the parking lot.  

    Austin police arrived on scene and located the male victim, who had sustained life-threatening gunshot wounds, and was pronounced deceased, despite lifesaving attempts. 

    On Feb. 16, the Austin Police Department, Homicide Unit, obtained a warrant for Rodriguez-Gomez in the City of Austin Municipal Court and requested immediate assistance from the Lone Star Fugitive Task Force in the Austin Division. 

    On March 13, after members of the task force developed information that indicated Rodriguez-Gomez was residing in the 15200 block of Sparks Road in Manor, the suspect fled on foot into a wooded area and was arrested by a swarm of task force officers, with vital assistance provided by the Austin Police Department, Air Support Division. 

    Rodriguez-Gomez was transferred to the Austin Police Department and booked into the Travis County Jail where he will await further judicial proceedings. 

    According to Immigration and Customs Enforcement (ICE) Rodriguez-Gomez, a Mexican national, is an undocumented immigrant from Mexico with no legal status in the United States.

    Members of the Lone Star Fugitive Task Force in Austin – 

    Austin Police Department-Tactical Intelligence Unit
    Round Rock, and San Marcos Police Department
    Caldwell, Hays, Travis, and Williamson County Sheriff’s Office
    Texas Attorney General’s Office
    Texas Department of Criminal Justice OIG
    Texas Department of Public Safety
    U.S. Immigration & Customs Enforcement
    U.S. DHS/Homeland Security Investigations

    MIL Security OSI –

  • MIL-OSI Security: Three Venezuelans Sentenced to Prison for Possessing Fake Green Cards

    Source: Office of United States Attorneys

    Defendants Arrested During the Laken Riley Murder Investigation in Athens, Georgia

    ATHENS, Ga. – A Venezuelan man who entered the United States illegally and who admitted to possessing a fraudulent Green Ccard during the murder investigation of a 22-year-old nursing student was sentenced to serve 48 months in prison—above the federal sentencing guidelines—and to be deported along with his brother and a former roommate.

    Diego Jose Ibarra, aka “Gocho,” 29, was sentenced to serve a total of 48 months in prison after he pleaded guilty to two counts of possession of a fraudulent document on July 15, 2024. Argenis Ibarra, aka “Meny,” 25, of Venezuela, was sentenced to time served after he pleaded guilty to one count of possession of a fraudulent document on Dec. 10, 2024. Rosbeli Flores-Bello, aka “La Gorda,” 29, of Venezuela, was sentenced to time served after she pleaded guilty to one count of possession of a fraudulent document on Dec. 11, 2024.

    All three defendants are to be delivered to U.S. Immigration and Customs Enforcement (ICE) for deportation. Diego Ibarra will be placed in ICE custody at the conclusion of his federal prison sentence; Argenis Ibarra and Flores-Bello will be placed in ICE custody immediately. U.S. District Judge Tilman E. Self, III handed down the sentences on March 19 in Athens. There is no parole in the federal system.

    According to court documents and statements referenced in court, Homeland Security Investigations (HSI) was made aware of Deigo Ibarra’s undocumented presence in the United States on Feb. 23, 2024, during the murder investigation of Laken Hope Riley, who was kidnapped and brutally murdered on Feb. 22, 2024, during a morning run at the University of Georgia, where she previously attended as an undergraduate prior to transferring to the Augusta University College of Nursing. At the time, an Athens-Clarke County Police Department (ACCPD) officer approached Diego Ibarra because he matched the description of the primary suspect in the murder investigation, which was his brother, Jose Antonio Ibarra. Diego Ibarra gave the ACCPD officer a counterfeit U.S. Permanent Resident Card (also called a Green Card) as identification and was taken into custody. Jose Ibarra was convicted of Laken Riley’s murder on Nov. 20, 2024, in Athens-Clarke County Superior Court and is serving a life sentence.

    On April 30, 2023, Diego Ibarra illegally entered the United States, along with four other Venezuelan men, by crossing the border near the Ysleta station in El Paso, Texas. The men fled when approached by the United States Border Patrol (USBP) agents. Diego Ibarra resisted an agent’s efforts to detain him and grabbed the agent’s service radio, threw it into a nearby yard, and then attempted to bite the agent. Agents scuffled with him and another Venezuelan man for several minutes before the National Guard arrived and assisted in subduing both men. Diego Ibarra was taken to a local hospital after complaining of chest pains and pain in his back and leg, which he indicated to FBI agents he sustained from scaling and falling from the border fence during his illegal crossing. He admitted to illegally crossing the border, resisting arrest and attempting to avoid apprehension at any cost. He said his injuries were not from the fight with agents.

    According to information uncovered during the investigation and provided in multiple court documents, Diego Ibarra is likely affiliated with the Venezuelan gang Tren de Aragua (TdA), based on evidence including his multiple TdA tattoos and photos of him on social media making the TdA gang signs and wearing TdA clothing. Further investigation concluded that Diego Ibarra was previously removed from the United States to Mexico on April 3, 2023, after agents apprehended him illegally entering the United States near Eagle Pass, Texas. After the above incident on April 30, 2023, Diego Ibarra claimed asylum and fear of return to Venezuela. On May 11, 2023, ICE Enforcement and Removal Operations (ERO) placed him in the Alternatives to Detention (ATD) program, and he was released from immigration custody the following day. The ATD program required Diego Ibarra to wear a global positioning system (GPS) ankle monitoring device, and he was directed to report to New York, New York, pending asylum proceedings. He failed to report in New York as directed.

    On May 25, 2023, Diego Ibarra’s ankle monitor last “pinged” near Littleton, Colorado, and he cut it off at some point prior to his final arrest in Athens, Georgia. Diego Ibarra settled in Athens and was subsequently arrested three times by law enforcement: on Sept. 24, 2023, he was arrested by ACCPD for driving under the influence of alcohol and driving without a license; on Oct. 27, 2023, he was arrested by ACCPD for theft by shoplifting; and on Dec. 8, 2023, he was arrested by ACCPD for shoplifting and for an outstanding arrest warrant that was issued when he failed to appear in court for his DUI charge. In addition, ACCPD responded to a domestic incident involving Diego Ibarra and his girlfriend on Sept. 26, 2023. And, while in the custody of the U.S. Marshals Service and housed in the Butts County Detention Center, Ibarra caused “severe water damage” inside the jail when he damaged the fire sprinkler system in a jail cell block. On June 25, 2024, jail officers found Ibarra in possession of two improvised weapons: a sharpened sprinkler head with a make-shift grip and a pen wrapped in saran wrap.

    Co-defendants Argenis Ibarra (Diego and Jose Ibarra’s younger brother) and Flores-Bello (Deigo and Jose Ibarra’s roommate) admitted to possessing a fraudulent U.S. Permanent Resident Card in the names of Argenis Jose Ibarra Ibarra and Rodrianny Brito Brito respectively on Feb. 23, 2024. In addition, agents found counterfeit Social Security cards for Argenis Ibarra and Flores-Bello in the apartment they shared with Diego and Jose Ibarra.

    Investigators determined that Argenis Ibarra entered the United States illegally on April 3, 2023, near Eagle Pass, Texas, and the USBP returned him to Mexico. On April 30, 2023, the USBP encountered and arrested him near El Paso, Texas, and transported him to an ICE processing center in El Paso. Because the processing center lacked space, Ibarra was released on his own recognizance on May 4, 2023. Argenis submitted Form I-765 for Employment Authorization on Oct. 20, 2023, and Nov. 2, 2023, both of which were rejected.

    Flores-Bello illegally entered the United States on May 3, 2023, and was arrested by the USBP. She was transported to an ICE processing center in El Paso. On May 5, 2023, Flores-Bello was released on her own recognizance because the processing center lacked space. She provided a residential address in New York and was scheduled for immigration court there on Oct. 18, 2023. In Dec. 2023, she and Jose Ibarra, whom she met in New York, took a humanitarian flight from New York to Atlanta, Georgia. She settled in Athens and lived with the Ibarra brothers until Laken Riley was murdered.

    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).

    The case was investigated by Homeland Security Investigations (HSI) with critical assistance from FBI, GBI, Athens-Clarke County Police Department, University of Georgia Police Department and Clarke County Sheriff’s Office.

    Assistant U.S. Attorney Mike Morrison prosecuted the case for the Government

    MIL Security OSI –

  • MIL-OSI Security: Charlotte Man Sentenced to 20 Years for Trafficking Kilograms of Cocaine from Charlotte to Wilmington

    Source: Office of United States Attorneys

    RALEIGH, N.C. – A Charlotte man was sentenced Tuesday to 20 years in prison for injecting large quantities of cocaine into the Wilmington area from early 2017 to July 2022. On November 5, 2024, Kinte Fisher, age 47, pled guilty to Possession with Intent to Distribute a quantity of cocaine.

    According to court documents and other information presented in court, agents with the Federal Bureau of Investigation (FBI) and the Wilmington Police Department (WPD) started investigating Fisher for drug trafficking. The investigation revealed that Fisher, who lived in Charlotte, moved narcotics to a “stash house” that he maintained in Wilmington. From there, he would sell large quantities of cocaine.  Fisher often used the cover of visiting family to deliver cocaine to the area and supervised several other individuals involved in drug trafficking, including his girlfriend. Fisher also mailed packages containing narcotics using the United States Postal Service. Over a five-year period, Fisher distributed at least sixty-two kilograms of cocaine.

    On July 25, 2022, surveillance revealed that Fisher was traveling again to Wilmington. Agents with the FBI saw him enter his stash house with a backpack. A few moments later, Fisher left the apartment and threw a piece of plastic wrap into a municipal trash can before driving off. Law enforcement officers tested that plastic wrap, and it tested positive for cocaine residue. Based on that, law enforcement attempted to initiate a traffic stop. Fisher sped off.  A high-speed chase unfolded where Fisher sped through various areas, including one of Wilmington’s business districts. Fisher abandoned his car and continued to evade arrest on foot. Law enforcement caught up to Fisher at the Wilmington Riverwalk. As they closed in, Fisher tossed his cellphone into the river. A subsequent search of Fisher’s stash house found approximately 340 grams of cocaine, a scale, and drug packaging materials.

    This investigation was an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    Daniel P. Bubar, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge James C. Dever III. The FBI and the Wilmington Police Department investigated the case and Assistant U.S. Attorney Logan Liles  prosecuted the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-101-D-1.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Lawrence County Man Sentenced to More Than Five Years in Prison for Mail Fraud

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

    HUNTSVILLE, Ala. –  A Lawrence County man has been sentenced for his role in a scheme to steal agricultural chemicals from his employer, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

    U.S. District Court Judge Liles C. Burke sentenced Christopher Michelfelder, 56, of Moulton, Alabama, to 63 months in prison.  In December 2024, Michelfelder pleaded guilty to mail fraud.

    According to the plea agreement, Michelfelder was the facility manager of the local branch of an international agricultural company that sells chemicals to customers. Over the course of a decade, he executed a scheme in which stole products from his employer.  He sold them to a third-party broker under the false pretense that the products belonged to his personal farm business, Midway Farms.  Michelfelder shipped the products via FedEx to an address that the broker would provide to him. The loss amount was over $6 million.

    The FBI investigated the case.  Assistant U.S. Attorney John M. Hundscheid prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: Columbus Man Sentenced to 25 Years in Prison for Exploiting Minor

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

    COLUMBUS, Ohio – A Columbus man who sexually abused a young girl and created child pornography of the abuse was sentenced in federal court here today to 300 months in prison.

    Arturo Navarrete-Juarez, 30, pleaded guilty in July to sexually exploiting a minor. He was charged federally by a criminal complaint in March 2023.

    According to court documents, between October 2021 and December 2022, Navarrete-Juarez sexually abused a minor female and filmed some of the abuse. Specifically, the child was between the ages of 9 and 10 in the videos recovered by law enforcement.

    In March of 2023, the FBI investigated child sexual abuse material on a Tor network that featured Navarrete-Juarez. The defendant’s face was visible in the videos. Investigators also linked Navarrete-Juarez’s identity to the videos by distinctive tattoos on his hands, arms and chest and by the apartment depicted in the background of the videos.

    Navarrete-Juarez is a Mexican national and does not currently have legal status in the United States.

    Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Chief U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Jennifer M. Rausch and Emily Czerniejewski are representing the United States in this case.

    MIL Security OSI –

  • MIL-OSI USA: Wisconsinites’ Years of Work Fighting Fentanyl

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    The Halt All Lethal Trafficking of Fentanyl (HALT) Act passed the Senate last week with an overwhelmingly bipartisan vote of 84-16. 

    The HALT Fentanyl Act incorporates the permanent scheduling of fentanyl-related substances, which I first introduced in 2017 in the Stopping Overdoses of Fentanyl Analogues Act (SOFA). It ensures law enforcement has the tools they need to stop fentanyl’s flow into our country. 

    SOFA served as the template for the Trump administration’s temporary scheduling rule in 2018, and it recognizes the admirable devotion of Wisconsinites Dr. Tim Westlake and Lauri Badura (pictured above). Ms. Badura, who founded Saving Others for Archie, made it her life’s mission to end the fentanyl crisis after tragically losing her son, Archie, to fentanyl poisoning. 

    WATCH: Video message from families (including Baduras) to pass the HALT Act

    WATCH: 2017 video with Lauri telling Archie’s story

    As a member of the U.S. Senate Committee on Finance, I met with President Trump last week and we discussed my plan to get spending back to pre-pandemic levels – saving a minimum of $700 billion.

    There is so much room for reducing the size of the federal government and balancing the budget is entirely doable. I look forward to working with the White House and getting spending under control.

    Thank you to Kevin O’Leary for highlighting my chart on Fox Business. This is an eminently reasonable approach to returning to a pre-pandemic level of spending. 

    WATCH: Sen. Johnson on Fox Business discusses his White House meeting 

    WATCH: Sen. Johnson on the Jesse Kelly podcast reviews his plan to balance budget

    • LISTEN: I joined the MAHA Alliance podcast for a powerful discussion on the MAHA movement, RFK Jr., and government corruption.
    • I was highly disappointed to hear that the nomination of Dr. David Weldon to lead the CDC has been withdrawn. Although we will never know exactly why his nomination was pulled, I suspect it had something to do with the fact he has had the courage to be skeptical of the consensus “narrative” surrounding the childhood vaccine schedule. Skepticism is the vital attribute of true science, and it is beyond unfortunate that someone with his background and integrity will not be able to help fix what is broken at the CDC. (I discussed this on Off the Record podcast with Emily Jashinsky.)
    • My X post on the news that Steak n’ Shake will soon be using Wisconsin butter instead of a “buttery blend”. 

    I helped introduce a bipartisan, bicameral bill to expand federal funding for bike and pedestrian safety. The bill is named for American diplomat and Wisconsin native Sarah Debbink Langenkamp, who was killed in 2022 while riding her bicycle in Bethesda. 

    The Sarah Debbink Langenkamp Active Safety Transportation Act will expand federal funding opportunities for local governments to improve roadway safety for bicyclists and pedestrians.  

    While honoring Sarah, this bill will protect Wisconsinites by investing in infrastructure to enhance road safety for pedestrians and cyclists. By using taxpayer dollars effectively, it will help prevent further deaths from preventable traffic accidents and ensure Americans feel safe when using our roads.

    Thank you to everyone who participated in my 114th telephone town hall last week. 

    We are now streaming our town halls on X, so you can listen to it here.
     
    Questions asked include:

    11:45    Introduction
    13:45    Protecting personal information from DOGE 
    16:27    Will there be cuts to Social Security and Medicare?
    18:40    Justice System transparency 
    20:20    Wasteful spending examples
    24:00    Is Social Security a legal Ponzi scheme?
    29:00    ICE and deportations
    31:31    Federal worker layoffs 
    35:04    How do we make the spending cuts permanent?
    40:55    Inspector Generals and oversight
    43:30    Support for Veterans and the VA
    46:08    COVID-19 vaccine requirements for citizenship
    48:04    Wisconsin manufacturing and tariffs
    51:35    Controlling crime and fentanyl 
    54:35    Taxing pensions
    56:45    Bipartisanship
    1:00:25 Federal voter ID and proof of citizenship 
    1:02:36 Balancing the budget

     
    To join future telephone town halls live, sign up here. There is also a link on that page to submit written questions during the live town halls.
     

    MIL OSI USA News –

  • MIL-OSI Security: Lone Star Fugitive Task Force Apprehend Fugitive who Fled to Mexico After 2019 San Antonio Homicide

    Source: US Marshals Service

    San Antonio, TX – The U.S. Marshals Service (USMS)-led Lone Star Fugitive Task Force (LSFTF) in San Antonio, with the assistance of the Gulf Coast Violent Offenders Task Force (GCVOTF) in Laredo, has apprehended a San Antonio man wanted in connection with the 2019 murder of an elderly man. 

    Joe Michael Rubio, 24, was apprehended March 14 with the assistance of Mexican authorities from La Secretaría de Seguridad y Protección Ciudadana (SSPC) in Nuevo Laredo, Tamaulipas, Mexico. His capture resulted from a multiagency effort that developed numerous leads.

    Rubio was detained, officially deported from Mexico, and placed into the custody of the U.S. Marshals GCVOTF in Laredo where he is currently awaiting extradition back to Bexar County. 

    On July 26, 2019, 77-year-old Jose Rodriguez was fatally shot outside a gas station on Fair Avenue in San Antonio’s South Side. After purchasing lottery tickets, he was confronted by two suspects in what police believe was an attempted robbery. During the altercation, Rodriguez sustained three gunshot wounds, including one to the face, and was pronounced dead at the scene.

    Rubio was subsequently charged with aggravated robbery and homicide. Members of the LSFTF followed multiple leads and gathered information suggesting that Rubio fled to Mexico upon learning of his active arrest warrant.

    In 2023, the LSFTF officially elevated the case involving Rubio to USMS Major Case status.

    “Through strong international partnerships, the U.S. Marshals Service collaborates with law enforcement agencies in Mexico and beyond to facilitate the apprehension of fugitives and uphold justice,” said Susan Pamerleau, U.S. Marshal for the Western District of Texas. “These cooperative efforts play a vital role in enhancing public safety and ensuring that fugitives are held accountable.”

    The LSFTF thanks the Mexican authorities from La Secretaría de Seguridad y Protección Ciudadana for their critical assistance.

    The USMS Major Case Fugitive Program prioritizes the investigation and apprehension of high-profile offenders considered to be some of the country’s most dangerous individuals. These offenders tend to be career criminals with histories of violence or who pose a significant threat to public safety.

    Members of the Lone Star Fugitive Task Force – San Antonio:

    Bexar County Sheriff’s Office (BCSO)
    Texas Department of Public Safety (TXDPS)
    Texas Attorney General’s Office (TXAGO)
    Naval Criminal Investigative Service (NCIS)
    New Braunfels Police Department (NBPD)
    Texas Board of Criminal Justice OIG (TBCJ)
    Bexar County District Attorney’s Office (BCDA)
    U.S. Immigration and Customs Enforcement (ICE) U.S. Marshal Service (USMS)

    MIL Security OSI –

  • MIL-OSI Security: Former Art Advisor Lisa Schiff Sentenced To 30 Months In Prison For Defrauding Clients

    Source: Office of United States Attorneys

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, announced today that LISA SCHIFF, a Manhattan-based art advisor focused on contemporary art, was sentenced today to 30 months in prison by U.S. District Judge J. Paul Oetken for perpetrating a multi-year scheme in which she defrauded the clients of her art advisory business of approximately $6.5 million in connection with the purchase and sale of approximately fifty-five artworks. 

    Acting U.S. Attorney Matthew Podolsky said: “For five years, Lisa Schiff breached the trust of her art advisory clients by diverting millions of dollars to pay her own business and personal expenses, and to fund a lavish lifestyle. Because of Schiff’s lies, and her illusory art advisory scam, Schiff will now serve a substantial sentence in prison.”   

    According to the Information, plea agreement, and statements made in court:

    From 2018 through May 2023, SCHIFF engaged in a scheme to defraud clients of her art advisory business, Schiff Fine Art (“SFA”) by diverting her clients’ funds—profits from the sale of her clients’ artworks or payments they made to purchase artwork—to pay her own personal and business expenses. SCHIFF advised clients regarding the purchase and sale of artworks and bought and sold artworks on behalf of clients in exchange for a commission. In her role as an art advisor, SCHIFF acted as an intermediary between art galleries and auction houses, and her clients, who were art collectors. Typically, when SCHIFF’s clients bought or sold artworks, payments were routed through SCHIFF’s business, SFA. In addition, when SCHIFF sold artworks on behalf of a client, she often had custody or control of the artworks to coordinate the sale. At times, SCHIFF, through SFA, also sold artwork on consignment on behalf of artists and other galleries.   

    Starting in about 2018, SCHIFF began defrauding her clients in two ways: not remitting payments to her clients when she sold their artwork while not disclosing to her clients that their artworks had, in fact, been sold; and not purchasing artworks on behalf of clients despite representing to her clients that she would purchase certain artworks on their behalf using their funds. Instead of using client funds as promised, SCHIFF diverted her clients’ money to pay her business and personal expenses. SCHIFF lied to her clients and galleries in furtherance of her fraud scheme. For example, when defrauding clients in connection with selling their artwork, SCHIFF at times lied to clients, claiming she had not sold the artwork, or the buyer was delayed in making the payment and SCHIFF still had custody of the artwork when, in fact, SCHIFF had sold the artwork, received payment from the buyer, and delivered the artwork to the buyer. When defrauding clients in connection with purchasing artwork on their behalf, SCHIFF lied to galleries from which she was supposed to purchase artwork on behalf clients, blaming delays in payment on clients when, in fact, clients had already paid SCHIFF for the purchase of the artwork and she had diverted the funds for her own use. In 2020, SCHIFF considered admitting to at least two of her victims that she had stolen millions from them, drafting letters of confession to them, but she never sent the letters and instead continued to defraud these two victims and others for three more years. Over approximately five years, SCHIFF defrauded at least 12 clients, one artist, the estate of another artist, and one gallery, collectively, of at least approximately $6.5 million. During her fraud, SCHIFF lived lavishly and incurred substantial debts, which she paid in part using her victims’ diverted funds.

    In about May 2023, SCHIFF could no longer conceal her scheme due to mounting debts. SCHIFF confessed to several clients that she had stolen their money.

    *                *                *

    SCHIFF, 54, of New York, New York, was sentenced to two years of supervised release. SCHIFF was further ordered to pay forfeiture of $6,408,538.20 and restitution of $9,147,789.26.

    Mr. Podolsky praised the outstanding work of the Federal Bureau of Investigation’s Art Crime Team.

    This case is being handled by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorneys Cecilia Vogel and Jennifer Ong are in charge of the prosecution.

    MIL Security OSI –

  • MIL-OSI Security: Indian National Found Guilty of Possession with Intent to Distribute More than 170 Pounds of MDMA in Eastern Washington

    Source: Office of United States Attorneys

    Spokane, Washington – Acting United States Attorney Richard R. Barker announced today that a jury returned a verdict in the federal trial of Jaskaran Singh, age 31, who is a native of Gujarat, India. Singh was found guilty of Possession with Intent to Distribute 3,4-Methylenedioxymethamphetamine (MDMA), which is more commonly known as “Ecstasy” or “Molly.” United States District Judge Thomas O. Rice presided over Singh’s trial, which began March 17, 2025. At sentencing, which is set for June 25, 2025, Singh faces a maximum term of imprisonment of twenty years. He may also face removal from the United States.

    The evidence presented at trial established that on April 29, 2023, at approximately 10:00 p.m., three unknown individuals tripped motion sensor cameras in a remote area just south of the U.S.-Canada border, approximately one-half-mile west of the Danville, Washington port of entry. U.S. Border Patrol officials at the Curlew Border Patrol Station saw images of these individuals, who had crossed into the United States from Canada and were carrying backpacks and a suitcase. From the U.S. side of the border, the only route to drive into or out of this area is an unestablished dead end, dirt road known as Fourth of July Creek Road.

    Minutes later, Border Patrol observed a 2014 Honda Odyssey traveling east on Fourth of July Creek Road. Border Patrol Agents responded to the area and stopped Singh, who was driving the rented Honda Odyssey away from the U.S. Canada border.

    From outside the van, Border Patrol agents observed backpacks and suitcase in the rear cargo area of the Odyssey. The backpacks and suitcase were same as those carried across the border by the three individuals, who tripped the motion sensor cameras just a few minutes earlier. Border Patrol Agents obtained authorization to search the van and seized 173.7 pounds of MDMA stored inside the backpacks and suitcase.  Investigators later located a map of the area on Singh’s phone and messages detailing where Singh should go, when he should arrive, and directing him to “leave the back hood open.”

    Testimony at trial established that the three men transported the MDMA from the Canadian side of the border by carrying the backpacks and suitcase through approximately 300 yards of remote wilderness to where Singh had parked the rented Odyssey van.  The three men then returned to the Canadian side of the border, escaping apprehension by law enforcement.

    Just one day before the massive seizure, Singh traveled from Northern California to Washington State. Singh had purchased his ticket just prior to the flight and then rented a car in Seattle, before driving to the remote area where the drugs were smuggled across the U.S.-Canada border.

    “Mr. Singh trafficked more than 170 pounds of illegal drugs across our northern border into the United States,” stated Acting United States Attorney Richard Barker. This seizure, which was one of the largest ever in Eastern Washington, had a street value exceeding $7.8 million. Today’s guilty verdict sends a clear message that those who seek to exploit our nation’s borders by flooding our communities with dangerous controlled substances will be held accountable for their crimes.”

    “The transnational drug trafficking organization for whom Singh worked had identified the ideal, isolated location in rural Washington to smuggle illegal drugs across the northern border,” continued Acting United States Attorney Barker. “Fortunately, our team of experienced Border Patrol agents were ready, and they intercepted this poison before it could harm communities in Eastern Washington.”

    “International drug traffickers like Mr. Singh profit by flooding our country with illicit, dangerous drugs that harm our citizens,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “I am gratified that we, at the Drug Enforcement Administration, can stand with our partners in the U.S. Border Patrol and the U.S. Attorney’s Office to hold people like Mr. Singh accountable for their crimes.”

    “Spokane Sector agents are vigilantly safeguarding our borders, swiftly detecting, and interdicting cross-border smuggling activities. This conviction highlights the Spokane Border Patrol Sector’s unwavering commitment to protecting communities from illicit drugs and those who attempt to smuggle them across our borders,” said Jason Liebe, Acting Chief Patrol Agent of the Spokane Sector for the U.S. Border Patrol.

    This case was investigated by the United States Border Patrol, the Drug Enforcement Administration, and Homeland Security Investigations. It is being prosecuted by Assistant United States Attorneys Alison L. Gregoire and Dan Fruchter.

    2:23-cr-00052-TOR

    MIL Security OSI –

  • MIL-OSI Security: Longtime Rollin’ 60s Crips Leader and Show Business Entrepreneur Charged in Federal Complaint Alleging Racketeering Crimes

    Source: Office of United States Attorneys

    LOS ANGELES – A longtime leader of the South Los Angeles-based Rollin’ 60s Neighborhood Crips street gang – who also is an entertainment entrepreneur and a self-proclaimed community activist – has been charged in a federal complaint alleging he ran a criminal enterprise that committed a series of racketeering crimes, including extortion, human trafficking, fraud, and the 2021 murder of an aspiring rap musician, the Justice Department announced today.

    Eugene Henley Jr., 58, a.k.a. “Big U,” of the Hyde Park neighborhood of South Los Angeles, is charged in the complaint with conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act.

    Two other alleged members of the criminal enterprise – Sylvester Robinson, 59, a.k.a. “Vey,” of Northridge, and Mark Martin, 50, a.k.a. “Bear Claw,” of the Beverlywood area of Los Angeles – were arrested today on the same criminal complaint in which Henley is charged. 

    Robinson, and Martin are expected to make their initial appearances this afternoon in United States District Court in downtown Los Angeles. Henley is considered a fugitive.

    “The allegations in the complaint unsealed today reveal a criminal enterprise that engaged in murder, extortion, human trafficking, and fraud – all led by a supposed anti-gang activist and purported music entrepreneur who was nothing more than a violent street criminal,” said Acting United States Attorney Joseph McNally. “Eliminating gangs and organized crime is the Department of Justice’s top priority. Today’s charges and arrests target the leadership of this criminal outfit and will make the neighborhoods of Los Angeles safer. I am grateful for the work of our prosecutors and law enforcement partners.”

    “The lead defendant and others in this case have for too long gotten away with violent acts and stealing money from taxpayers and well-intentioned donors whether they use intimidation tactics or wield influence as rehabilitated original gangsters,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI and our partners have worked for four years to bring justice in this case and will continue to rule out this kind of criminal behavior plaguing the streets of Los Angeles.”

    In total, law enforcement in the last 24 hours arrested 10 Rollin’ 60s members and associates who are charged with various federal crimes, including drug trafficking, racketeering conspiracy, and firearms offenses. Four defendants already were in custody. Law enforcement is seeking the whereabouts of five other defendants – three of whom are expected to be in custody shortly. Two defendants, including Henley, are considered fugitives.

    According to an affidavit filed with the criminal complaint filed Monday and unsealed today, from 2010 to the present, Henley’s criminal group – identified in court documents as the “Big U Enterprise” – operated as a mafia-like organization that utilized Henley’s stature and long-standing association with the Rollin’ 60s and other street gangs to intimidate businesses and individuals in Los Angeles. Henley is widely regarded as a leader within the Rollin’ 60s and rose to prominence in the street gang during the 1980s.

    While the Big U Enterprise at times partnered with the Rollin’s 60s and other criminal elements for mutual benefit, the Big U Enterprise is a distinct and independent criminal enterprise engaged in criminal activity including murder, extortion, robbery, trafficking and exploiting sex workers, fraud, and illegal gambling.

    For example, in January 2021, Henley murdered a victim – identified in the affidavit as “R.W.” – an aspiring musician signed to Uneek Music, Henley and Martin’s music label. Shortly before R.W.’s murder, Henley and Uneek Music paid for R.W. to travel to Las Vegas to record music at a Grammy Award-winning music producer’s studio.

    But R.W. did not record at the agreed-upon rate and instead recorded a defamatory song about Henley, causing Henley and Robinson to travel to Las Vegas to confront him. Henley allegedly drove R.W. to North Las Vegas, shot him in the head, and dragged the victim’s body off Interstate 15 into the desert and left it in a ditch. Henley returned to Los Angeles with Robinson and ordered studio workers to leave while his associate removed security surveillance footage from the studio. Henley allegedly later ordered witnesses to not speak with law enforcement about R.W.’s murder.  

    Not only did the enterprise expand its power through violence, fear, and intimidation, but it also used social media platforms, documentaries, podcasts, interviews, and Henley’s reputation and status as an “O.G.” (original gangster) to create fame for – and stoke fear of – the Big U Enterprise, its members, and its associates. 

    In furtherance of the enterprise, Henley allegedly submitted a fraudulent application for a COVID-19 pandemic relief loan in which he claimed that Uneek Music was operating at a $200,000 profit in 2019 despite operating at a $5,000 loss that year, which should have disqualified it from loan eligibility. 

    The enterprise also enriched itself by defrauding donors to nonprofit entities under the control of the Big U Enterprise, including Henley’s charity, Developing Options, a Hyde Park-based nonprofit. Henley marketed Developing Options as giving South Los Angeles youth alternative choices to gang violence, drugs, and other criminal activity. But the Big U Enterprise allegedly used it as a front for fraudulent purposes and to insulate its members from suspicion by law enforcement. 

    Henley allegedly embezzled large donations that celebrities and award-winning companies made to Developing Options, which Henley immediately converted to his personal bank account. According to the complaint, Developing Options is primarily funded through the City of Los Angeles’s Mayor’s Office through the Gang Reduction Youth Development (GRYD) Foundation, portions of which receive federal funding, but also receives donations from prominent sources, including NBA players. 

    “The RICO charges against Mr. Henley and his associates reflect a pattern of crimes that runs the gambit from extortion to tax evasion, all under the umbrella of a well-organized criminal organization led by Mr. Henley,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Additionally, Mr. Henley allegedly duped the County of Los Angeles by running a charitable organization that promoted anti-gang solutions while continuing criminal activity that was directly contrary to his charity. IRS-CI is proud to partner with fellow law enforcement organizations to investigate these criminal organizations to protect our communities from further harm.”

    “From day one, the Los Angeles Police Department has been proud to stand shoulder to shoulder with the FBI in this critical investigation,” said Los Angeles Police Chief Jim McDonnell. “The invaluable expertise provided by the Operations South Bureau FBI Task Force on the Rollin’ 60’s criminal street gang has played a pivotal role in securing these charges. This is a major step forward in our ongoing fight against gang violence, and it brings hope and relief to a community that has endured far too much. Together, we will continue to protect and serve, working tirelessly to ensure the safety of our neighborhoods.”

    Criminal complaints and indictments contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    If convicted, Henley would face a statutory maximum sentence of life in federal prison. If convicted, Robinson, and Martin would face a statutory maximum sentence of 20 years in federal prison. 

    The FBI’s Los Angeles Metropolitan Task Force on Violent Gangs; IRS Criminal Investigation; the United States Department of Justice Office of Inspector General; the Los Angeles Police Department; and the North Las Vegas Police Department are investigating this matter.

    Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Violent and Organized Crime Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Global: European defence spending: three technical reasons for political cooperation

    Source: The Conversation – UK – By Francesco Grillo, Academic Fellow, Department of Social and Political Sciences, Bocconi University

    How much would it really cost the European Union to defend itself against aggression? In the immediate term, that question, of course makes us think of Russia, but we can no longer exclude multiple other possibilities, including the potential need to defend territory – say, Greenland – from a former ally.

    How much would it cost to defend Europe if we added in the need to defend the UK, Norway, Turkey or even Canada – and any other Nato country willing to pool resources to fill the void left by US disengagement? Is there an intelligent way to avoid painful trade-offs between this and, say, spending on healthcare or education?

    It looks like EU institutions are finally “doing something” (as former Italian prime minister Mario Draghi recently asked them to do). They may even break the taboo of raising common debt in order to increase spending on joint defence procurements.

    Yet, it also seems they are about to launch a plan that could change the very nature of the European Union without even tackling the question of its financial feasibility. The answer to how joint defence can be paid for certainly doesn’t come from the plan that the European Commission has unveiled on “rearming Europe”. At the very last line of that statement, a figure of €800 billion is posited, but it is not clear how the sum was calculated and quite a few critical qualifications are missing.

    The debate over how much it costs to prevent a war (which is a very different notion from fighting one), has been dominated by what I would call “the fallacy of the percentage of GDP”.

    In 2014 (at the time of Russia’s annexation of Crimea), the leaders of Nato countries agreed to spend at least 2% of their GDP on defence (specifying that retirement benefits to veterans should be included). Yet by 2022, the overall ratio for Nato defence spending had, in fact, shrunk from 2.58% of GDP to 2.51% (thanks to the sharp reduction in the percentage of GDP contributed by the US). And, according to the European Defence Agency, the EU is spending around €279 billion, which is 1.6% of its GDP. Most likely, the €800 billion figure that European Commission president Ursula von der Leyen was citing in her communique is simply an estimate of how much it would yield to increase that spending up to 2% of GDP for each of the next ten years.

    Politicians sometimes need to make back-of-the-envelope calculations, but I would argue that here it points to a much broader problem. Europe hasn’t yet bothered to try to develop a strategy for how this additional money would be spent. A proper strategy should, in fact, start from three key technical considerations. To which I would add a no-less important political one.

    1. Spending smart is better than spending big

    Technologies (including AI) are radically changing the equation. The conflicts in Ukraine and Gaza demonstrate that cheap drones are now the key to modern warfare – not super expensive F35 strike fighters. Why spend billions designing, building and maintaining 2,500 F35s when a drone the size of a mobile phone can cross enemy lines unnoticed?

    In a world in which data is a weapon, and a large-scale attack can be mounted by taking remote control of pagers, what generals call “supremacy” doesn’t necessarily belong to the biggest spender.

    Israel’s military budget is one-third that of Saudi Arabia, yet it dominates the Middle East because its perpetual state of conflict forces innovation. Russia spends less than half of the 27 EU member states, but it has much more experience in hacking other countries’ infrastructures. The EU spends as much as China, but China invests more than twice in research and development and is the world’s largest exporter of drones as a result.

    2. Spending together is better value

    The European parliament estimates that merging the 27 member states’ defence budgets would free up €56 billion (which is a third of what the defence bonds proposed by the Commission would raise).

    Yet the trend is to spend more alone than together. According to the European Defence Agency, the bloc has more than doubled its expenditure on new digital technologies; yet the percentage of that going into joint projects between member states fell from 11% before Ukraine’s invasion to 6.5% in 2023.

    Joint tech spending in Europe.
    Vision, CC BY-ND

    3. Homegrown suddenly looks safer

    Any common defence would also have to rely on “buying European” as much as possible. The F35 fighter jet is another good example here. Denmark agreed to buy 27 of them (to the tune of around €3 billion) with an idea to station four of them in Greenland. The problem is that, according to the former president of the Munich security conference Wolfgang Ischinger, they cannot even take off if remotely disabled by the US. Again, Europe is not walking the walk. The share of equipment that European nations import from the US has massively increased in the last five years.

    A new era for the union

    Defence is probably the most important issue when talking about the Europe of the future. It provides a concrete opportunity to fill a technological gap out of the necessity to do so. Spending on defence in the interests of self-protection may have longer-term benefits beyond the military arena. It has been often the case that military research leads to major breakthroughs that can applied in public services. Who knows. Military innovations with drone or AI technology on today’s battlefields could lead to beneficial uses in peace time.

    The historic opportunity to transform the way we protect ourselves may even force a radical rethinking of not just the EU treaties but of the nature of the EU. The idea of the “coalition of the willing” may, indeed, push Europe towards an alliance which does not include some of its members (such as Hungary) but does include non-members like the UK, Norway and even Turkey. New arrangements will need to be pragmatically flexible.

    Europeans need much more strategy, whereas we now largely have rhetorical announcements with little substance. And we need much more democracy. After all, defence is one of the defining dimensions of the state. Having a common defence policy in Europe could make people feel more like European citizens. But that cannot happen without engaging citizens in an intelligent debate.

    Francesco Grillo is affiliated with the think tank Vision.

    – ref. European defence spending: three technical reasons for political cooperation – https://theconversation.com/european-defence-spending-three-technical-reasons-for-political-cooperation-252410

    MIL OSI – Global Reports –

  • MIL-OSI Security: Update following fatal collision in Aldwych

    Source: United Kingdom London Metropolitan Police

    Police are continuing to investigate a fatal collision in Aldwych on Tuesday, 18 March.

    Emergency services were called to a location close to The Strand, near King’s College London’s campus at 11:41hrs following a collision involving a van and pedestrians.

    Sadly, a woman in her 20s was pronounced dead at the scene. Her family have been made aware and continue to be supported by specialist officers.

    A 27-year-old woman was taken to hospital where she remains in a serious condition. Her injuries are not believed to be life-threatening. A 23-year-old man was taken to hospital and has since been discharged.

    Police arrested the driver of the van, a 26-year-old man at the scene on suspicion of causing death by careless driving. He was further arrested whilst in custody on suspicion of drug driving offences. He has since been bailed with conditions while enquiries continue.

    Detective Chief Superintendent Christina Jessah, in charge of policing for the area said:

    “This was a tragic incident which has deeply affected the community.

    “I commend the actions of the emergency services and members of the public, who provided aid to those involved who tried to save this young woman’s life and help the others who were injured.

    “This area of London is extremely busy and those who have been in the area over the last 24 hours would have noticed an increased police presence as our enquiries continue.

    “Cordons have since been lifted, however we continue to work with those in the area, including King’s College London.

    “We are aware of inaccurate speculation online about this incident being terrorism related. We ask the public to refrain from this speculation to protect the integrity of the ongoing investigation and avoid causing further suffering to the family of the young woman.

    “Our thoughts remain with the family of the young woman who has died.”

    Chief Superintendent Thomas Naughton of the Met’s Roads and Transport Policing Command said:

    “Our team is continuing to establish the facts around this extremely upsetting incident.

    “The investigation remains in the early stages and officers continue to gather CCTV and obtain witness statements from those at the scene.

    “The 26-year-old man who was arrested has since been bailed whilst our enquiries continue. This is a complex investigation which remains a priority to ensure justice for those affected.”

    Anyone with information is asked to call police on 101 or post @MetCC ref CAD 2771/18MARCH.

    To remain 100% anonymous contact the independent charity Crimestoppers on 0800 555 111.

    MIL Security OSI –