Category: FBI

  • MIL-OSI USA: Man Who Murdered Fellow Soldier on Military Base in Germany Sentenced to Prison

    Source: US State of California

    A former U.S. soldier was sentenced today to 30 years in prison for the murder of a pregnant, 19-year-old fellow soldier on a U.S. Army base in Germany over 22 years ago.

    On May 7, a jury in Pensacola, Florida, found Shannon L. Wilkerson, 44, guilty of second-degree murder in the death of Amanda Gonzales.

    According to court documents, Wilkerson beat and strangled Amanda Gonzales to death on Nov. 3, 2001, in her barracks room at Fliegerhorst Kaserne, then a U.S. Army base in Hanau, Germany. Evidence introduced at trial indicated that Wilkerson feared he was the father of Gonzales’ unborn child and that her pregnancy would interfere with his military career and his marriage to another soldier on the base. Wilkerson was a member of the U.S. Armed Forces at the time of the offense but was later discharged.

    “Shannon Wilkerson brutally murdered Amanda Gonzales, a fellow soldier who Wilkerson knew was pregnant at the time,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “While nothing we can do will reunite Amanda with her family, we hope today’s sentencing brings some measure of closure and comfort to Amanda’s loved ones. I am proud of the dedicated and hardworking members of the Criminal Division and our law enforcement partners, who are committed to pursuing justice for victims of violent crime, no matter how challenging that pursuit may be.”

    “The murder of Amanda Gonzales and her unborn child was a horrific act of violence,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “This decades-long investigation and resulting prosecution demonstrate the unwavering resolve of our law enforcement partners and their commitment to obtain justice for the victims and their family. The defendant took the life of a 19-year-old woman serving her country far from home — knowing that he was killing her unborn child. The sentence acknowledges the brutal, selfish nature of his crime and imposes just punishment.”

    “Justice for victims is not just a promise, it’s a commitment, no matter how long it takes,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This sentencing comes just as Amanda Gonzales’ family will mark 23 years since she and her unborn child were brutally murdered by Shannon Wilkerson on Nov. 3, 2001. While no amount of prison time will bring the young Army solider back, we hope this will close another chapter in the Gonzales family’s grieving process.”

    The FBI New York and Jacksonville Field Offices investigated this case, with assistance from the Army Criminal Investigative Division, which originally investigated the case.

    Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David L. Goldberg for the Northern District of Florida prosecuted the case.

    MIL OSI USA News

  • MIL-OSI Security: Man Who Murdered Fellow Soldier on Military Base in Germany Sentenced to Prison

    Source: United States Attorneys General

    A former U.S. soldier was sentenced today to 30 years in prison for the murder of a pregnant, 19-year-old fellow soldier on a U.S. Army base in Germany over 22 years ago.

    On May 7, a jury in Pensacola, Florida, found Shannon L. Wilkerson, 44, guilty of second-degree murder in the death of Amanda Gonzales.

    According to court documents, Wilkerson beat and strangled Amanda Gonzales to death on Nov. 3, 2001, in her barracks room at Fliegerhorst Kaserne, then a U.S. Army base in Hanau, Germany. Evidence introduced at trial indicated that Wilkerson feared he was the father of Gonzales’ unborn child and that her pregnancy would interfere with his military career and his marriage to another soldier on the base. Wilkerson was a member of the U.S. Armed Forces at the time of the offense but was later discharged.

    “Shannon Wilkerson brutally murdered Amanda Gonzales, a fellow soldier who Wilkerson knew was pregnant at the time,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “While nothing we can do will reunite Amanda with her family, we hope today’s sentencing brings some measure of closure and comfort to Amanda’s loved ones. I am proud of the dedicated and hardworking members of the Criminal Division and our law enforcement partners, who are committed to pursuing justice for victims of violent crime, no matter how challenging that pursuit may be.”

    “The murder of Amanda Gonzales and her unborn child was a horrific act of violence,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “This decades-long investigation and resulting prosecution demonstrate the unwavering resolve of our law enforcement partners and their commitment to obtain justice for the victims and their family. The defendant took the life of a 19-year-old woman serving her country far from home — knowing that he was killing her unborn child. The sentence acknowledges the brutal, selfish nature of his crime and imposes just punishment.”

    “Justice for victims is not just a promise, it’s a commitment, no matter how long it takes,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “This sentencing comes just as Amanda Gonzales’ family will mark 23 years since she and her unborn child were brutally murdered by Shannon Wilkerson on Nov. 3, 2001. While no amount of prison time will bring the young Army solider back, we hope this will close another chapter in the Gonzales family’s grieving process.”

    The FBI New York and Jacksonville Field Offices investigated this case, with assistance from the Army Criminal Investigative Division, which originally investigated the case.

    Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney David L. Goldberg for the Northern District of Florida prosecuted the case.

    MIL Security OSI

  • MIL-OSI Security: Mexican National Admits Role in Smuggling and Labor Trafficking Scheme

    Source: United States Department of Justice (Human Trafficking)

    Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARIA DEL CARMEN SANCHEZ POTRERO, also known as Maria Carmela Sanchez, 73, a citizen of Mexico last residing in Hartford, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a charge stemming from her involvement in a scheme to smuggle aliens into the U.S., harbor them at Hartford area residences, force them to work, and threaten to harm them in various ways if they failed to pay exorbitant fees, interest, and other living expenses.

    According to court documents and statements made in court, beginning in September 2022, the FBI and Hartford Police interviewed several Mexican nationals who disclosed that they were smuggled from Mexico into the U.S. and transported to Hartford.  The investigation revealed that victims typically arranged with Sanchez, her co-conspirators in Connecticut, and associates in Mexico to cross the border into the U.S. in exchange for a fee of between $15,000 and $20,000 that each would need to pay once they were in the U.S.  In most cases, the victims were required to turn over a property deed as collateral before leaving Mexico.  They were then smuggled across the border and transported to Hartford area residences, including Sanchez’s residence on Madison Street in Hartford, often at a substantial risk of bodily injury or death.

    After the victims arrived in Connecticut, they were told that they would have to pay $30,000, with interest, and that they would have to pay Sanchez and her co-coconspirators for rent, food, gas and utilities.  Sanchez and her co-conspirators created false documents for the victims, including Permanent Residence cards and Social Security cards, and helped the victims find employment in the Hartford area.  In addition to their own jobs, some victims were required to perform housework and yardwork without compensation and without having their debt reduced.

    Victims were rarely provided with an accounting of their debt.  If victims failed to make regular payments, or in amounts that Sanchez and her co-conspirators expected, they were sometimes threatened, including with threats to harm family members in Mexico, to take property in Mexico that had been secured as collateral, to reveal victims’ immigration status to U.S. authorities, and to raise their interest payments.

    To date, investigators have identified 18 victims of this scheme.

    Sanchez pleaded guilty to conspiracy to encourage and induce, bring in, transport, and harbor aliens, an offense that carries a maximum term of imprisonment of 10 years.  Judge Dooley scheduled sentencing for January 16, 2025.

    As part of her plea agreement, Sanchez has agreed to a restitution order of $494,608.

    Sanchez has been detained since her arrest on March 1, 2023.

    This investigation is being conducted by the Federal Bureau of Investigation, Hartford Police Department, U.S. Department of Labor – Office of Inspector General, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and U.S. Immigration and Customs Enforcement.  The case is being prosecuted by Assistant U.S. Attorneys Angel Krull and Shan Patel.

    MIL Security OSI

  • MIL-OSI Security: Former Eagle Pass Police Officer Sentenced to 10 Years in Federal Prison for Operating Human Smuggling Stash Houses

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

    DEL RIO, Texas – An Eagle Pass woman, who had served as a police detective, was sentenced in a federal court in Del Rio to 120 months in prison for her role in a conspiracy to harbor undocumented noncitizens for a human smuggling organization (HSO).

    According to court documents, Hazel Eileen Diaz, 54, rented out multiple properties she owned in Eagle Pass to assist in harboring undocumented noncitizens between September 2020 and August 2021. Diaz would often travel to the properties where the migrants were being held to collect rent payments. An investigation revealed that, in total, nearly 200 migrants were smuggled by the HSO Diaz worked for, and that she had received approximately $36,916 in cash and money service business transfers, much of which were proceeds from human smuggling. At the time of her arrest, she was in possession of $23,522 in cash from the smuggling operation.

    Co-defendant Tomas Alejandro Mendez pleaded guilty on July 11, 2022 to one count of conspiracy to harbor illegal aliens. He is scheduled to be sentenced Jan. 13, 2025. Co-defendant Paola Nikole Cazares was sentenced Oct. 11, 2023 to 63 months in prison for the same offense with credit for time served since Aug. 26, 2021. Mendez and Cazares worked with Diaz to operate her properties as stash houses.

    In addition to imprisonment, Diaz will serve three years of supervised release, pay a $10,000 fine and money judgement of $237,600, and she will forfeit three properties, a truck, and $23,522.

    U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.

    The FBI, Homeland Security Investigations, the U.S. Border Patrol, and the Texas Department of Public Safety investigated the case.

    Assistant U.S. Attorney Holly Pavlinski prosecuted the case.

    ###

    MIL Security OSI

  • MIL-OSI Security: Repeat Domestic Abuser Sentenced to Federal Prison for Violently Attacking His Girlfriend

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

    pokane, Washington – On October 23, 2024, United States District Judge Thomas O. Rice sentenced James Edward Kensler, age 45, of Spokane, Washington, to 60 months in prison for violently assaulting his girlfriend. Judge Rice also imposed 3 years of supervised release. At the time of the offense, Kensler was on federal supervised release. As a penalty for the supervised release violation, Judge Rice imposed a penalty of 18 months which will be served consecutively to the 60-month sentence imposed in this case.

    According to court documents and information presented during proceedings in the case, Kensler was with his girlfriend at the Northern Quest Resort & Casino in May 2024.  Kensler, who is an enrolled member of the Confederated Tribes of the Colville Reservation, grabbed his victim by the back of the head and threw her on the ground with such force that the impact of her head hitting the couch moved two couches and a table forward.

    Kensler then chased his victim through the resort. When Kensler caught his victim, he again threw her to the ground, attempted to stomp on her face, punched her in the face, slapped her, and hit her with his knee. When Kensler’s victim attempted to escape a second time, he again pursued her and threw her into a closed elevator door.

    In the resort parking lot, Kalispel Tribal Police Officers apprehended Kensler and provided aid to his victim. Officers noted the victim’s face was swollen and that she had multiple scrapes.

    “Mr. Kensler violently and repeatedly assaulted his victim, causing her severe injuries.  Furthermore, Mr. Kenlser had a history of domestic violence offenses and was on federal supervised release at the time of this latest assault,” stated U.S. Attorney Vanessa Waldref. “Focusing our prosecutions on repeat offenders and those with prior domestic violence convictions is one of our strategies to support community safety and address the root causes underlying the MMIP crisis.  My office is committed to working with our partners in Tribal and Federal law enforcement to secure justice for all victims and to build safer and stronger communities on Tribal lands and throughout Eastern Washington.”

    “When Mr. Kensler was taken into custody, he was treated respectfully.” said Kelly M. Smith, Assistant Special Agent in Charge of the FBI’s Seattle field office. “The same cannot be said of how he treated his girlfriend. This case demonstrates successful partnerships, as in this case with the Kalispel Tribal Police, we can help reduce violent crime on our state’s reservations.”

    “We are committed to the safety and security of our guests,” said Police Chief Rodney Schurger of the Kalispel Tribal Police Department. “Our officers responded swiftly to this violent incident and worked closely with the FBI to ensure that justice was served.”

    “The safety of our guests, Tribal Members, and team members is our top priority,” said Kalispel Tribal Council Vice Chair Curt Holmes. “Domestic violence and other violent crimes are growing concerns across the nation and in the Spokane region. We are thankful for the prompt actions of our Tribal Police Department and the FBI’s involvement in this case. We also appreciate the U.S. Attorney’s Office for their dedication to prosecuting violent offenders like Mr. Kensler and helping to keep our communities safe.”

    This case was investigated by the FBI and the Kalispel Tribal Police. This case was prosecuted by Assistant United States Attorney Michael J. Ellis.

    2:24-cr-00074-TOR

    MIL Security OSI

  • MIL-OSI USA: Memorandum on Advancing the United  States’ Leadership in Artificial Intelligence; Harnessing Artificial Intelligence to Fulfill National Security Objectives; and Fostering the Safety, Security, and Trustworthiness of Artificial  Intelligence

    US Senate News:

    Source: The White House
    MEMORANDUM FOR THE VICE PRESIDENT
                   THE SECRETARY OF STATE
                   THE SECRETARY OF THE TREASURY
                   THE SECRETARY OF DEFENSE
                   THE ATTORNEY GENERAL
                   THE SECRETARY OF COMMERCE
                   THE SECRETARY OF ENERGY
                   THE SECRETARY OF HEALTH AND HUMAN SERVICES
                   THE SECRETARY OF HOMELAND SECURITY
                   THE DIRECTOR OF THE OFFICE OF MANAGEMENT AND BUDGET
                   THE DIRECTOR OF NATIONAL INTELLIGENCE
                   THE REPRESENTATIVE OF THE UNITED STATES OF AMERICA TO THE UNITED NATIONS
                   THE DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY
                   THE ASSISTANT TO THE PRESIDENT AND CHIEF OF STAFF
                   THE ASSISTANT TO THE PRESIDENT FOR NATIONAL SECURITY AFFAIRS
                   THE ASSISTANT TO THE PRESIDENT FOR ECONOMIC
                      POLICY AND DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL
                   THE CHAIR OF THE COUNCIL OF ECONOMIC ADVISERS
                   THE DIRECTOR OF THE OFFICE OF SCIENCE AND TECHNOLOGY POLICY
                   THE ADMINISTRATOR OF THE UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
                   THE DIRECTOR OF THE NATIONAL SCIENCE FOUNDATION
                   THE DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION
                   THE NATIONAL CYBER DIRECTOR
                   THE DIRECTOR OF THE OFFICE OF PANDEMIC PREPAREDNESS AND RESPONSE POLICY
                   THE DIRECTOR OF THE NATIONAL SECURITY AGENCY
                   THE DIRECTOR OF THE NATIONAL GEOSPATIAL-INTELLIGENCE AGENCY
                   THE DIRECTOR OF THE DEFENSE INTELLIGENCE AGENCY
    SUBJECT:       Advancing the United States’ Leadership in
                   Artificial Intelligence; Harnessing Artificial
                   Intelligence to Fulfill National Security
                   Objectives; and Fostering the Safety, Security,
                   and Trustworthiness of Artificial Intelligence
         Section 1.  Policy.  (a)  This memorandum fulfills the directive set forth in subsection 4.8 of Executive Order 14110 of October 30, 2023 (Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence).  This memorandum provides further direction on appropriately harnessing artificial intelligence (AI) models and AI-enabled technologies in the United States Government, especially in the context of national security systems (NSS), while protecting human rights, civil rights, civil liberties, privacy, and safety in AI-enabled national security activities.  A classified annex to this memorandum addresses additional sensitive national security issues, including countering adversary use of AI that poses risks to United States national security.
         (b)  United States national security institutions have historically triumphed during eras of technological transition.  To meet changing times, they developed new capabilities, from submarines and aircraft to space systems and cyber tools.  To gain a decisive edge and protect national security, they pioneered technologies such as radar, the Global Positioning System, and nuclear propulsion, and unleashed these hard-won breakthroughs on the battlefield.  With each paradigm shift, they also developed new systems for tracking and countering adversaries’ attempts to wield cutting-edge technology for their own advantage.
         (c)  AI has emerged as an era-defining technology and has demonstrated significant and growing relevance to national security.  The United States must lead the world in the responsible application of AI to appropriate national security functions.  AI, if used appropriately and for its intended purpose, can offer great benefits.  If misused, AI could threaten United States national security, bolster authoritarianism worldwide, undermine democratic institutions and processes, facilitate human rights abuses, and weaken the rules-based international order.  Harmful outcomes could occur even without malicious intent if AI systems and processes lack sufficient protections.
         (d)  Recent innovations have spurred not only an increase in AI use throughout society, but also a paradigm shift within the AI field — one that has occurred mostly outside of Government.  This era of AI development and deployment rests atop unprecedented aggregations of specialized computational power, as well as deep scientific and engineering expertise, much of which is concentrated in the private sector.  This trend is most evident with the rise of large language models, but it extends to a broader class of increasingly general-purpose and computationally intensive systems.  The United States Government must urgently consider how this current AI paradigm specifically could transform the national security mission.
         (e)  Predicting technological change with certainty is impossible, but the foundational drivers that have underpinned recent AI progress show little sign of abating.  These factors include compounding algorithmic improvements, increasingly efficient computational hardware, a growing willingness in industry to invest substantially in research and development, and the expansion of training data sets.  AI under the current paradigm may continue to become more powerful and general-purpose.  Developing and effectively using these systems requires an evolving array of resources, infrastructure, competencies, and workflows that in many cases differ from what was required to harness prior technologies, including previous paradigms of AI.
         (f)  If the United States Government does not act with responsible speed and in partnership with industry, civil society, and academia to make use of AI capabilities in service of the national security mission — and to ensure the safety, security, and trustworthiness of American AI innovation writ large — it risks losing ground to strategic competitors.  Ceding the United States’ technological edge would not only greatly harm American national security, but it would also undermine United States foreign policy objectives and erode safety, human rights, and democratic norms worldwide.
         (g)  Establishing national security leadership in AI will require making deliberate and meaningful changes to aspects of the United States Government’s strategies, capabilities, infrastructure, governance, and organization.  AI is likely to affect almost all domains with national security significance, and its use cannot be relegated to a single institutional silo.  The increasing generality of AI means that many functions that to date have been served by individual bespoke tools may, going forward, be better fulfilled by systems that, at least in part, rely on a shared, multi-purpose AI capability.  Such integration will only succeed if paired with appropriately redesigned United States Government organizational and informational infrastructure.
         (h)  In this effort, the United States Government must also protect human rights, civil rights, civil liberties, privacy, and safety, and lay the groundwork for a stable and responsible international AI governance landscape.  Throughout its history, the United States has been a global leader in shaping the design, development, and use of new technologies not only to advance national security, but also to protect and promote democratic values.  The United States Government must develop safeguards for its use of AI tools, and take an active role in steering global AI norms and institutions.  The AI frontier is moving quickly, and the United States Government must stay attuned to ongoing technical developments without losing focus on its guiding principles.
         (i)  This memorandum aims to catalyze needed change in how the United States Government approaches AI national security policy.  In line with Executive Order 14110, it directs actions to strengthen and protect the United States AI ecosystem; improve the safety, security, and trustworthiness of AI systems developed and used in the United States; enhance the United States Government’s appropriate, responsible, and effective adoption of AI in service of the national security mission; and minimize the misuse of AI worldwide.
    Sec. 2.  Objectives.  It is the policy of the United States Government that the following three objectives will guide its activities with respect to AI and national security.
         (a)  First, the United States must lead the world’s development of safe, secure, and trustworthy AI.  To that end, the United States Government must — in partnership with industry, civil society, and academia — promote and secure the foundational capabilities across the United States that power AI development.  The United States Government cannot take the unmatched vibrancy and innovativeness of the United States AI ecosystem for granted; it must proactively strengthen it, ensuring that the United States remains the most attractive destination for global talent and home to the world’s most sophisticated computational facilities.  The United States Government must also provide appropriate safety and security guidance to AI developers and users, and rigorously assess and help mitigate the risks that AI systems could pose.
         (b)  Second, the United States Government must harness powerful AI, with appropriate safeguards, to achieve national security objectives.  Emerging AI capabilities, including increasingly general-purpose models, offer profound opportunities for enhancing national security, but employing these systems effectively will require significant technical, organizational, and policy changes.  The United States must understand AI’s limitations as it harnesses the technology’s benefits, and any use of AI must respect democratic values with regard to transparency, human rights, civil rights, civil liberties, privacy, and safety.
         (c)  Third, the United States Government must continue cultivating a stable and responsible framework to advance international AI governance that fosters safe, secure, and trustworthy AI development and use; manages AI risks; realizes democratic values; respects human rights, civil rights, civil liberties, and privacy; and promotes worldwide benefits from AI.  It must do so in collaboration with a wide range of allies and partners.  Success for the United States in the age of AI will be measured not only by the preeminence of United States technology and innovation, but also by the United States’ leadership in developing effective global norms and engaging in institutions rooted in international law, human rights, civil rights, and democratic values.
    Sec. 3.  Promoting and Securing the United States’ Foundational AI Capabilities.  (a)  To preserve and expand United States advantages in AI, it is the policy of the United States Government to promote progress, innovation, and competition in domestic AI development; protect the United States AI ecosystem against foreign intelligence threats; and manage risks to AI safety, security, and trustworthiness.  Leadership in responsible AI development benefits United States national security by enabling applications directly relevant to the national security mission, unlocking economic growth, and avoiding strategic surprise.  United States technological leadership also confers global benefits by enabling like-minded entities to collectively mitigate the risks of AI misuse and accidents, prevent the unchecked spread of digital authoritarianism, and prioritize vital research.
         3.1.  Promoting Progress, Innovation, and Competition in United States AI Development.  (a)  The United States’ competitive edge in AI development will be at risk absent concerted United States Government efforts to promote and secure domestic AI progress, innovation, and competition.  Although the United States has benefited from a head start in AI, competitors are working hard to catch up, have identified AI as a top strategic priority, and may soon devote resources to research and development that United States AI developers cannot match without appropriately supportive Government policies and action.  It is therefore the policy of the United States Government to enhance innovation and competition by bolstering key drivers of AI progress, such as technical talent and computational power.
         (b)  It is the policy of the United States Government that advancing the lawful ability of noncitizens highly skilled in AI and related fields to enter and work in the United States constitutes a national security priority.  Today, the unparalleled United States AI industry rests in substantial part on the insights of brilliant scientists, engineers, and entrepreneurs who moved to the United States in pursuit of academic, social, and economic opportunity.  Preserving and expanding United States talent advantages requires developing talent at home and continuing to attract and retain top international minds.
         (c)  Consistent with these goals:
    (i)    On an ongoing basis, the Department of State, the Department of Defense (DOD), and the Department of Homeland Security (DHS) shall each use all available legal authorities to assist in attracting and rapidly bringing to the United States individuals with relevant technical expertise who would improve United States competitiveness in AI and related fields, such as semiconductor design and production.  These activities shall include all appropriate vetting of these individuals and shall be consistent with all appropriate risk mitigation measures.  This tasking is consistent with and additive to the taskings on attracting AI talent in section 5 of Executive Order 14110.
    (ii)   Within 180 days of the date of this memorandum, the Chair of the Council of Economic Advisers shall prepare an analysis of the AI talent market in the United States and overseas, to the extent that reliable data is available.
    (iii)  Within 180 days of the date of this memorandum, the Assistant to the President for Economic Policy and Director of the National Economic Council shall coordinate an economic assessment of the relative competitive advantage of the United States private sector AI ecosystem, the key sources of the United States private sector’s competitive advantage, and possible risks to that position, and shall recommend policies to mitigate them.  The assessment could include areas including (1) the design, manufacture, and packaging of chips critical in AI-related activities; (2) the availability of capital; (3) the availability of workers highly skilled in AI-related fields; (4) computational resources and the associated electricity requirements; and (5) technological platforms or institutions with the requisite scale of capital and data resources for frontier AI model development, as well as possible other factors.
    (iv)   Within 90 days of the date of this memorandum, the Assistant to the President for National Security Affairs (APNSA) shall convene appropriate executive departments and agencies (agencies) to explore actions for prioritizing and streamlining administrative processing operations for all visa applicants working with sensitive technologies.  Doing so shall assist with streamlined processing of highly skilled applicants in AI and other critical and emerging technologies.  This effort shall explore options for ensuring the adequate resourcing of such operations and narrowing the criteria that trigger secure advisory opinion requests for such applicants, as consistent with national security objectives.
         (d)  The current paradigm of AI development depends heavily on computational resources.  To retain its lead in AI, the United States must continue developing the world’s most sophisticated AI semiconductors and constructing its most advanced AI-dedicated computational infrastructure.
         (e)  Consistent with these goals:
    (i)    DOD, the Department of Energy (DOE) (including national laboratories), and the Intelligence Community (IC) shall, when planning for and constructing or renovating computational facilities, consider the applicability of large-scale AI to their mission.  Where appropriate, agencies shall design and build facilities capable of harnessing frontier AI for relevant scientific research domains and intelligence analysis.  Those investments shall be consistent with the Federal Mission Resilience Strategy adopted in Executive Order 13961 of December 7, 2020 (Governance and Integration of Federal Mission Resilience).
    (ii)   On an ongoing basis, the National Science Foundation (NSF) shall, consistent with its authorities, use the National AI Research Resource (NAIRR) pilot project and any future NAIRR efforts to distribute computational resources, data, and other critical assets for AI development to a diverse array of actors that otherwise would lack access to such capabilities — such as universities, nonprofits, and independent researchers (including trusted international collaborators) — to ensure that AI research in the United States remains competitive and innovative.  This tasking is consistent with the NAIRR pilot assigned in section 5 of Executive Order 14110.
    (iii)  Within 180 days of the date of this memorandum, DOE shall launch a pilot project to evaluate the performance and efficiency of federated AI and data sources for frontier AI-scale training, fine-tuning, and inference.
    (iv)   The Office of the White House Chief of Staff, in coordination with DOE and other relevant agencies, shall coordinate efforts to streamline permitting, approvals, and incentives for the construction of AI-enabling infrastructure, as well as surrounding assets supporting the resilient operation of this infrastructure, such as clean energy generation, power transmission lines, and high-capacity fiber data links.  These efforts shall include coordination, collaboration, consultation, and partnership with State, local, Tribal, and territorial governments, as appropriate, and shall be consistent with the United States’ goals for managing climate risks.
    (v)    The Department of State, DOD, DOE, the IC, and the Department of Commerce (Commerce) shall, as appropriate and consistent with applicable law, use existing authorities to make public investments and encourage private investments in strategic domestic and foreign AI technologies and adjacent fields.  These agencies shall assess the need for new authorities for the purposes of facilitating public and private investment in AI and adjacent capabilities.
         3.2.  Protecting United States AI from Foreign Intelligence Threats.  (a)  In addition to pursuing industrial strategies that support their respective AI industries, foreign states almost certainly aim to obtain and repurpose the fruits of AI innovation in the United States to serve their national security goals.  Historically, such competitors have employed techniques including research collaborations, investment schemes, insider threats, and advanced cyber espionage to collect and exploit United States scientific insights.  It is the policy of the United States Government to protect United States industry, civil society, and academic AI intellectual property and related infrastructure from foreign intelligence threats to maintain a lead in foundational capabilities and, as necessary, to provide appropriate Government assistance to relevant non-government entities.
         (b)  Consistent with these goals:
    (i)   Within 90 days of the date of this memorandum, the National Security Council (NSC) staff and the Office of the Director of National Intelligence (ODNI) shall review the President’s Intelligence Priorities and the National Intelligence Priorities Framework consistent with National Security Memorandum 12 of July 12, 2022 (The President’s Intelligence Priorities), and make recommendations to ensure that such priorities improve identification and assessment of foreign intelligence threats to the United States AI ecosystem and closely related enabling sectors, such as those involved in semiconductor design and production.
    (ii)  Within 180 days of the date of this memorandum, and on an ongoing basis thereafter, ODNI, in coordination with DOD, the Department of Justice (DOJ), Commerce, DOE, DHS, and other IC elements as appropriate, shall identify critical nodes in the AI supply chain, and develop a list of the most plausible avenues through which these nodes could be disrupted or compromised by foreign actors.  On an ongoing basis, these agencies shall take all steps, as appropriate and consistent with applicable law, to reduce such risks.
         (c)  Foreign actors may also seek to obtain United States intellectual property through gray-zone methods, such as technology transfer and data localization requirements.  AI-related intellectual property often includes critical technical artifacts (CTAs) that would substantially lower the costs of recreating, attaining, or using powerful AI capabilities.  The United States Government must guard against these risks.
         (d)  Consistent with these goals:
    (i)  In furtherance of Executive Order 14083 of September 15, 2022 (Ensuring Robust Consideration of Evolving National Security Risks by the Committee on Foreign Investment in the United States), the Committee on Foreign Investment in the United States shall, as appropriate, consider whether a covered transaction involves foreign actor access to proprietary information on AI training techniques, algorithmic improvements, hardware advances, CTAs, or other proprietary insights that shed light on how to create and effectively use powerful AI systems.
         3.3.  Managing Risks to AI Safety, Security, and Trustworthiness.  (a)  Current and near-future AI systems could pose significant safety, security, and trustworthiness risks, including those stemming from deliberate misuse and accidents.  Across many technological domains, the United States has historically led the world not only in advancing capabilities, but also in developing the tests, standards, and norms that underpin reliable and beneficial global adoption.  The United States approach to AI should be no different, and proactively constructing testing infrastructure to assess and mitigate AI risks will be essential to realizing AI’s positive potential and to preserving United States AI leadership.
         (b)  It is the policy of the United States Government to pursue new technical and policy tools that address the potential challenges posed by AI.  These tools include processes for reliably testing AI models’ applicability to harmful tasks and deeper partnerships with institutions in industry, academia, and civil society capable of advancing research related to AI safety, security, and trustworthiness.
         (c)  Commerce, acting through the AI Safety Institute (AISI) within the National Institute of Standards and Technology (NIST), shall serve as the primary United States Government point of contact with private sector AI developers to facilitate voluntary pre- and post-public deployment testing for safety, security, and trustworthiness of frontier AI models.  In coordination with relevant agencies as appropriate, Commerce shall establish an enduring capability to lead voluntary unclassified pre-deployment safety testing of frontier AI models on behalf of the United States Government, including assessments of risks relating to cybersecurity, biosecurity, chemical weapons, system autonomy, and other risks as appropriate (not including nuclear risk, the assessment of which shall be led by DOE).  Voluntary unclassified safety testing shall also, as appropriate, address risks to human rights, civil rights, and civil liberties, such as those related to privacy, discrimination and bias, freedom of expression, and the safety of individuals and groups.  Other agencies, as identified in subsection 3.3(f) of this section, shall establish enduring capabilities to perform complementary voluntary classified testing in appropriate areas of expertise.  The directives set forth in this subsection are consistent with broader taskings on AI safety in section 4 of Executive Order 14110, and provide additional clarity on agencies’ respective roles and responsibilities.
         (d)  Nothing in this subsection shall inhibit agencies from performing their own evaluations of AI systems, including tests performed before those systems are released to the public, for the purposes of evaluating suitability for that agency’s acquisition and procurement.  AISI’s responsibilities do not extend to the evaluation of AI systems for the potential use by the United States Government for national security purposes; those responsibilities lie with agencies considering such use, as outlined in subsection 4.2(e) of this memorandum and the associated framework described in that subsection.
         (e)  Consistent with these goals, Commerce, acting through AISI within NIST, shall take the following actions to aid in the evaluation of current and near-future AI systems:
    (i)    Within 180 days of the date of this memorandum and subject to private sector cooperation, AISI shall pursue voluntary preliminary testing of at least two frontier AI models prior to their public deployment or release to evaluate capabilities that might pose a threat to national security.  This testing shall assess models’ capabilities to aid offensive cyber operations, accelerate development of biological and/or chemical weapons, autonomously carry out malicious behavior, automate development and deployment of other models with such capabilities, and give rise to other risks identified by AISI.  AISI shall share feedback with the APNSA, interagency counterparts as appropriate, and the respective model developers regarding the results of risks identified during such testing and any appropriate mitigations prior to deployment.
    (ii)   Within 180 days of the date of this memorandum, AISI shall issue guidance for AI developers on how to test, evaluate, and manage risks to safety, security, and trustworthiness arising from dual-use foundation models, building on guidelines issued pursuant to subsection 4.1(a) of Executive Order 14110.  AISI shall issue guidance on topics including:
    (A)  How to measure capabilities that are relevant to the risk that AI models could enable the development of biological and chemical weapons or the automation of offensive cyber operations;
    (B)  How to address societal risks, such as the misuse of models to harass or impersonate individuals;
    (C)  How to develop mitigation measures to prevent malicious or improper use of models;
    (D)  How to test the efficacy of safety and security mitigations; and
    (E)  How to apply risk management practices throughout the development and deployment lifecycle (pre-development, development, and deployment/release).
    (iii)  Within 180 days of the date of this memorandum, AISI, in consultation with other agencies as appropriate, shall develop or recommend benchmarks or other methods for assessing AI systems’ capabilities and limitations in science, mathematics, code generation, and general reasoning, as well as other categories of activity that AISI deems relevant to assessing general-purpose capabilities likely to have a bearing on national security and public safety.
    (iv)   In the event that AISI or another agency determines that a dual-use foundation model’s capabilities could be used to harm public safety significantly, AISI shall serve as the primary point of contact through which the United States Government communicates such findings and any associated recommendations regarding risk mitigation to the developer of the model.
    (v)    Within 270 days of the date of this memorandum, and at least annually thereafter, AISI shall submit to the President, through the APNSA, and provide to other interagency counterparts as appropriate, at minimum one report that shall include the following:
    (A)  A summary of findings from AI safety assessments of frontier AI models that have been conducted by or shared with AISI;
    (B)  A summary of whether AISI deemed risk mitigation necessary to resolve any issues identified in the assessments, along with conclusions regarding any mitigations’ efficacy; and
    (C)  A summary of the adequacy of the science-based tools and methods used to inform such assessments.
         (f)  Consistent with these goals, other agencies specified below shall take the following actions, in coordination with Commerce, acting through AISI within NIST, to provide classified sector-specific evaluations of current and near-future AI systems for cyber, nuclear, and radiological risks:
    (i)    All agencies that conduct or fund safety testing and evaluations of AI systems shall share the results of such evaluations with AISI within 30 days of their completion, consistent with applicable protections for classified and controlled information.
    (ii)   Within 120 days of the date of this memorandum, the National Security Agency (NSA), acting through its AI Security Center (AISC) and in coordination with AISI, shall develop the capability to perform rapid systematic classified testing of AI models’ capacity to detect, generate, and/or exacerbate offensive cyber threats.  Such tests shall assess the degree to which AI systems, if misused, could accelerate offensive cyber operations.
    (iii)  Within 120 days of the date of this memorandum, DOE, acting primarily through the National Nuclear Security Administration (NNSA) and in close coordination with AISI and NSA, shall seek to develop the capability to perform rapid systematic testing of AI models’ capacity to generate or exacerbate nuclear and radiological risks.  This initiative shall involve the development and maintenance of infrastructure capable of running classified and unclassified tests, including using restricted data and relevant classified threat information.  This initiative shall also feature the creation and regular updating of automated evaluations, the development of an interface for enabling human-led red-teaming, and the establishment of technical and legal tooling necessary for facilitating the rapid and secure transfer of United States Government, open-weight, and proprietary models to these facilities.  As part of this initiative:
    (A)  Within 180 days of the date of this memorandum, DOE shall use the capability described in subsection 3.3(f)(iii) of this section to complete initial evaluations of the radiological and nuclear knowledge, capabilities, and implications of a frontier AI model no more than 30 days after the model has been made available to NNSA at an appropriate classification level.  These evaluations shall involve tests of AI systems both without significant modifications and, as appropriate, with fine-tuning or other modifications that could enhance performance.
    (B)  Within 270 days of the date of this memorandum, and at least annually thereafter, DOE shall submit to the President, through the APNSA, at minimum one assessment that shall include the following:
    (1)  A concise summary of the findings of each AI model evaluation for radiological and nuclear risk, described in subsection 3.3(f)(iii)(A) of this section, that DOE has performed in the preceding 12 months;
    (2)  A recommendation as to whether corrective action is necessary to resolve any issues identified in the evaluations, including but not limited to actions necessary for attaining and sustaining compliance conditions appropriate to safeguard and prevent unauthorized disclosure of restricted data or other classified information, pursuant to the Atomic Energy Act of 1954; and
    (3)  A concise statement regarding the adequacy of the science-based tools and methods used to inform the evaluations.
    (iv)   On an ongoing basis, DHS, acting through the Cybersecurity and Infrastructure Security Agency (CISA), shall continue to fulfill its responsibilities with respect to the application of AISI guidance, as identified in National Security Memorandum 22 of April 30, 2024 (Critical Infrastructure Security and Resilience), and section 4 of Executive Order 14110.
         (g)  Consistent with these goals, and to reduce the chemical and biological risks that could emerge from AI:
    (i)    The United States Government shall advance classified evaluations of advanced AI models’ capacity to generate or exacerbate deliberate chemical and biological threats.  As part of this initiative:
    (A)  Within 210 days of the date of this memorandum, DOE, DHS, and AISI, in consultation with DOD and other relevant agencies, shall coordinate to develop a roadmap for future classified evaluations of advanced AI models’ capacity to generate or exacerbate deliberate chemical and biological threats, to be shared with the APNSA.  This roadmap shall consider the scope, scale, and priority of classified evaluations; proper safeguards to ensure that evaluations and simulations are not misconstrued as offensive capability development; proper safeguards for testing sensitive and/or classified information; and sustainable implementation of evaluation methodologies.
    (B)  On an ongoing basis, DHS shall provide expertise, threat and risk information, and other technical support to assess the feasibility of proposed biological and chemical classified evaluations; interpret and contextualize evaluation results; and advise relevant agencies on potential risk mitigations.
    (C)  Within 270 days of the date of this memorandum, DOE shall establish a pilot project to provide expertise, infrastructure, and facilities capable of conducting classified tests in this area.
    (ii)   Within 240 days of the date of this memorandum, DOD, the Department of Health and Human Services (HHS), DOE (including national laboratories), DHS, NSF, and other agencies pursuing the development of AI systems substantially trained on biological and chemical data shall, as appropriate, support efforts to utilize high-performance computing resources and AI systems to enhance biosafety and biosecurity.  These efforts shall include:
    (A)  The development of tools for screening in silico chemical and biological research and technology;
    (B)  The creation of algorithms for nucleic acid synthesis screening;
    (C)  The construction of high-assurance software foundations for novel biotechnologies;
    (D)  The screening of complete orders or data streams from cloud labs and biofoundries; and
    (E)  The development of risk mitigation strategies such as medical countermeasures.
    (iii)  After the publication of biological and chemical safety guidance by AISI outlined in subsection 3.3(e) of this section, all agencies that directly develop relevant dual-use foundation AI models that are made available to the public and are substantially trained on biological or chemical data shall incorporate this guidance into their agency’s practices, as appropriate and feasible.
    (iv)   Within 180 days of the date of this memorandum, NSF, in coordination with DOD, Commerce (acting through AISI within NIST), HHS, DOE, the Office of Science and Technology Policy (OSTP), and other relevant agencies, shall seek to convene academic research institutions and scientific publishers to develop voluntary best practices and standards for publishing computational biological and chemical models, data sets, and approaches, including those that use AI and that could contribute to the production of knowledge, information, technologies, and products that could be misused to cause harm.  This is in furtherance of the activities described in subsections 4.4 and 4.7 of Executive Order 14110.
    (v)    Within 540 days of the date of this memorandum, and informed by the United States Government Policy for Oversight of Dual Use Research of Concern and Pathogens with Enhanced Pandemic Potential, OSTP, NSC staff, and the Office of Pandemic Preparedness and Response Policy, in consultation with relevant agencies and external stakeholders as appropriate, shall develop guidance promoting the benefits of and mitigating the risks associated with in silico biological and chemical research.
         (h)  Agencies shall take the following actions to improve foundational understanding of AI safety, security, and trustworthiness:
    (i)   DOD, Commerce, DOE, DHS, ODNI, NSF, NSA, and the National Geospatial-Intelligence Agency (NGA) shall, as appropriate and consistent with applicable law, prioritize research on AI safety and trustworthiness.  As appropriate and consistent with existing authorities, they shall pursue partnerships as appropriate with leading public sector, industry, civil society, academic, and other institutions with expertise in these domains, with the objective of accelerating technical and socio-technical progress in AI safety and trustworthiness.  This work may include research on interpretability, formal methods, privacy enhancing technologies, techniques to address risks to civil liberties and human rights, human-AI interaction, and/or the socio-technical effects of detecting and labeling synthetic and authentic content (for example, to address the malicious use of AI to generate misleading videos or images, including those of a strategically damaging or non-consensual intimate nature, of political or public figures).
    (ii)  DOD, Commerce, DOE, DHS, ODNI, NSF, NSA, and NGA shall, as appropriate and consistent with applicable law, prioritize research to improve the security, robustness, and reliability of AI systems and controls.  These entities shall, as appropriate and consistent with applicable law, partner with other agencies, industry, civil society, and academia.  Where appropriate, DOD, DHS (acting through CISA), the Federal Bureau of Investigation, and NSA (acting through AISC) shall publish unclassified guidance concerning known AI cybersecurity vulnerabilities and threats; best practices for avoiding, detecting, and mitigating such issues during model training and deployment; and the integration of AI into other software systems.  This work shall include an examination of the role of and vulnerabilities potentially caused by AI systems used in critical infrastructure.
         (i)  Agencies shall take actions to protect classified and controlled information, given the potential risks posed by AI:
    (i)  In the course of regular updates to policies and procedures, DOD, DOE, and the IC shall consider how analysis enabled by AI tools may affect decisions related to declassification of material, standards for sufficient anonymization, and similar activities, as well as the robustness of existing operational security and equity controls to protect classified or controlled information, given that AI systems have demonstrated the capacity to extract previously inaccessible insight from redacted and anonymized data.
    Sec. 4.  Responsibly Harnessing AI to Achieve National Security Objectives.  (a)  It is the policy of the United States Government to act decisively to enable the effective and responsible use of AI in furtherance of its national security mission.  Achieving global leadership in national security applications of AI will require effective partnership with organizations outside Government, as well as significant internal transformation, including strengthening effective oversight and governance functions.
         4.1.  Enabling Effective and Responsible Use of AI.  (a)  It is the policy of the United States Government to adapt its partnerships, policies, and infrastructure to use AI capabilities appropriately, effectively, and responsibly.  These modifications must balance each agency’s unique oversight, data, and application needs with the substantial benefits associated with sharing powerful AI and computational resources across the United States Government.  Modifications must also be grounded in a clear understanding of the United States Government’s comparative advantages relative to industry, civil society, and academia, and must leverage offerings from external collaborators and contractors as appropriate.  The United States Government must make the most of the rich United States AI ecosystem by incentivizing innovation in safe, secure, and trustworthy AI and promoting industry competition when selecting contractors, grant recipients, and research collaborators.  Finally, the United States Government must address important technical and policy considerations in ways that ensure the integrity and interoperability needed to pursue its objectives while protecting human rights, civil rights, civil liberties, privacy, and safety.
         (b)  The United States Government needs an updated set of Government-wide procedures for attracting, hiring, developing, and retaining AI and AI-enabling talent for national security purposes.
         (c)  Consistent with these goals:
    (i)   In the course of regular legal, policy, and compliance framework reviews, the Department of State, DOD, DOJ, DOE, DHS, and IC elements shall revise, as appropriate, their hiring and retention policies and strategies to accelerate responsible AI adoption.  Agencies shall account for technical talent needs required to adopt AI and integrate it into their missions and other roles necessary to use AI effectively, such as AI-related governance, ethics, and policy positions.  These policies and strategies shall identify financial, organizational, and security hurdles, as well as potential mitigations consistent with applicable law.  Such measures shall also include consideration of programs to attract experts with relevant technical expertise from industry, academia, and civil society — including scholarship for service programs — and similar initiatives that would expose Government employees to relevant non-government entities in ways that build technical, organizational, and cultural familiarity with the AI industry.  These policies and strategies shall use all available authorities, including expedited security clearance procedures as appropriate, in order to address the shortfall of AI-relevant talent within Government.
    (ii)  Within 120 days of the date of this memorandum, the Department of State, DOD, DOJ, DOE, DHS, and IC elements shall each, in consultation with the Office of Management and Budget (OMB), identify education and training opportunities to increase the AI competencies of their respective workforces, via initiatives which may include training and skills-based hiring.
         (d)  To accelerate the use of AI in service of its national security mission, the United States Government needs coordinated and effective acquisition and procurement systems.  This will require an enhanced capacity to assess, define, and articulate AI-related requirements for national security purposes, as well as improved accessibility for AI companies that lack significant prior experience working with the United States Government.
         (e)  Consistent with these goals:
    (i)    Within 30 days of the date of this memorandum, DOD and ODNI, in coordination with OMB and other agencies as appropriate, shall establish a working group to address issues involving procurement of AI by DOD and IC elements and for use on NSS.  As appropriate, the working group shall consult the Director of the NSA, as the National Manager for NSS, in developing recommendations for acquiring and procuring AI for use on NSS.
    (ii)   Within 210 days of the date of this memorandum, the working group described in subsection 4.1(e)(i) of this section shall provide written recommendations to the Federal Acquisition Regulatory Council (FARC) regarding changes to existing regulations and guidance, as appropriate and consistent with applicable law, to promote the following objectives for AI procured by DOD and IC elements and for use on NSS:
    (A)  Ensuring objective metrics to measure and promote the safety, security, and trustworthiness of AI systems;
    (B)  Accelerating the acquisition and procurement process for AI, consistent with the Federal Acquisition Regulation, while maintaining appropriate checks to mitigate safety risks;  
    (C)  Simplifying processes such that companies without experienced contracting teams may meaningfully compete for relevant contracts, to ensure that the United States Government has access to a wide range of AI systems and that the AI marketplace is competitive;
    (D)  Structuring competitions to encourage robust participation and achieve best value to the Government, such as by including requirements that promote interoperability and prioritizing the technical capability of vendors when evaluating offers;
    (E)  Accommodating shared use of AI to the greatest degree possible and as appropriate across relevant agencies; and
    (F)  Ensuring that agencies with specific authorities and missions may implement other policies, where appropriate and necessary.
    (iii)  The FARC shall, as appropriate and consistent with applicable law, consider proposing amendments to the Federal Acquisition Regulation to codify recommendations provided by the working group pursuant to subsection 4.1(e)(ii) of this section that may have Government-wide application.
    (iv)   DOD and ODNI shall seek to engage on an ongoing basis with diverse United States private sector stakeholders — including AI technology and defense companies and members of the United States investor community — to identify and better understand emerging capabilities that would benefit or otherwise affect the United States national security mission.
         (f)  The United States Government needs clear, modernized, and robust policies and procedures that enable the rapid development and national security use of AI, consistent with human rights, civil rights, civil liberties, privacy, safety, and other democratic values.
         (g)  Consistent with these goals:
    (i)    DOD and the IC shall, in consultation with DOJ as appropriate, review their respective legal, policy, civil liberties, privacy, and compliance frameworks, including international legal obligations, and, as appropriate and consistent with applicable law, seek to develop or revise policies and procedures to enable the effective and responsible use of AI, accounting for the following:
    (A)  Issues raised by the acquisition, use, retention, dissemination, and disposal of models trained on datasets that include personal information traceable to specific United States persons, publicly available information, commercially available information, and intellectual property, consistent with section 9 of Executive Order 14110;
    (B)  Guidance that shall be developed by DOJ, in consultation with DOD and ODNI, regarding constitutional considerations raised by the IC’s acquisition and use of AI;
    (C)  Challenges associated with classification and compartmentalization;
    (D)  Algorithmic bias, inconsistent performance, inaccurate outputs, and other known AI failure modes;
    (E)  Threats to analytic integrity when employing AI tools;
    (F)  Risks posed by a lack of safeguards that protect human rights, civil rights, civil liberties, privacy, and other democratic values, as addressed in further detail in subsection 4.2 of this section;
    (G)  Barriers to sharing AI models and related insights with allies and partners; and
    (H)  Potential inconsistencies between AI use and the implementation of international legal obligations and commitments.
    (ii)   As appropriate, the policies described in subsection 4.1(g) of this section shall be consistent with direction issued by the Committee on NSS and DOD governing the security of AI used on NSS, policies issued by the Director of National Intelligence governing adoption of AI by the IC, and direction issued by OMB governing the security of AI used on non-NSS.
    (iii)  On an ongoing basis, each agency that uses AI on NSS shall, in consultation with ODNI and DOD, take all steps appropriate and consistent with applicable law to accelerate responsible approval of AI systems for use on NSS and accreditation of NSS that use AI systems.
         (h)  The United States’ network of allies and partners confers significant advantages over competitors.  Consistent with the 2022 National Security Strategy or any successor strategies, the United States Government must invest in and proactively enable the co-development and co-deployment of AI capabilities with select allies and partners.
         (i)  Consistent with these goals:
    (i)  Within 150 days of the date of this memorandum, DOD, in coordination with the Department of State and ODNI, shall evaluate the feasibility of advancing, increasing, and promoting co-development and shared use of AI and AI-enabled assets with select allies and partners.  This evaluation shall include:
    (A)  A potential list of foreign states with which such co-development or co-deployment may be feasible;
    (B)  A list of bilateral and multilateral fora for potential outreach;
    (C)  Potential co-development and co-deployment concepts;
    (D)  Proposed classification-appropriate testing vehicles for co-developed AI capabilities; and
    (E)  Considerations for existing programs, agreements, or arrangements to use as foundations for future co-development and co-deployment of AI capabilities.
         (j)  The United States Government needs improved internal coordination with respect to its use of and approach to AI on NSS in order to ensure interoperability and resource sharing consistent with applicable law, and to reap the generality and economies of scale offered by frontier AI models.
         (k)  Consistent with these goals:
    (i)  On an ongoing basis, DOD and ODNI shall issue or revise relevant guidance to improve consolidation and interoperability across AI functions on NSS.  This guidance shall seek to ensure that the United States Government can coordinate and share AI-related resources effectively, as appropriate and consistent with applicable law.  Such work shall include:
    (A)  Recommending agency organizational practices to improve AI research and deployment activities that span multiple national security institutions.  In order to encourage AI adoption for the purpose of national security, these measures shall aim to create consistency to the greatest extent possible across the revised practices.
    (B)  Steps that enable consolidated research, development, and procurement for general-purpose AI systems and supporting infrastructure, such that multiple agencies can share access to these tools to the extent consistent with applicable law, while still allowing for appropriate controls on sensitive data.
    (C)  Aligning AI-related national security policies and procedures across agencies, as practicable and appropriate, and consistent with applicable law.
    (D)  Developing policies and procedures, as appropriate and consistent with applicable law, to share information across DOD and the IC when an AI system developed, deployed, or used by a contractor demonstrates risks related to safety, security, and trustworthiness, including to human rights, civil rights, civil liberties, or privacy.
         4.2.  Strengthening AI Governance and Risk Management.  (a)  As the United States Government moves swiftly to adopt AI in support of its national security mission, it must continue taking active steps to uphold human rights, civil rights, civil liberties, privacy, and safety; ensure that AI is used in a manner consistent with the President’s authority as Commander in Chief to decide when to order military operations in the Nation’s defense; and ensure that military use of AI capabilities is accountable, including through such use during military operations within a responsible human chain of command and control.  Accordingly, the United States Government must develop and implement robust AI governance and risk management practices to ensure that its AI innovation aligns with democratic values, updating policy guidance where necessary.  In light of the diverse authorities and missions across covered agencies with a national security mission and the rapid rate of ongoing technological change, such AI governance and risk management frameworks shall be:
    (i)    Structured, to the extent permitted by law, such that they can adapt to future opportunities and risks posed by new technical developments;
    (ii)   As consistent across agencies as is practicable and appropriate in order to enable interoperability, while respecting unique authorities and missions;
    (iii)  Designed to enable innovation that advances United States national security objectives;
    (iv)   As transparent to the public as practicable and appropriate, while protecting classified or controlled information;
    (v)    Developed and applied in a manner and with means to integrate protections, controls, and safeguards for human rights, civil rights, civil liberties, privacy, and safety where relevant; and
    (vi)   Designed to reflect United States leadership in establishing broad international support for rules and norms that reinforce the United States’ approach to AI governance and risk management.
         (b)  Covered agencies shall develop and use AI responsibly, consistent with United States law and policies, democratic values, and international law and treaty obligations, including international humanitarian and human rights law.  All agency officials retain their existing authorities and responsibilities established in other laws and policies.
         (c)  Consistent with these goals:
    (i)  Heads of covered agencies shall, consistent with their authorities, monitor, assess, and mitigate risks directly tied to their agency’s development and use of AI.  Such risks may result from reliance on AI outputs to inform, influence, decide, or execute agency decisions or actions, when used in a defense, intelligence, or law enforcement context, and may impact human rights, civil rights, civil liberties, privacy, safety, national security, and democratic values.  These risks from the use of AI include the following:
    (A)  Risks to physical safety:  AI use may pose unintended risks to human life or property.
    (B)  Privacy harms:  AI design, development, and operation may result in harm, embarrassment, unfairness, and prejudice to individuals.
    (C)  Discrimination and bias:  AI use may lead to unlawful discrimination and harmful bias, resulting in, for instance, inappropriate surveillance and profiling, among other harms.
    (D)  Inappropriate use:  operators using AI systems may not fully understand the capabilities and limitations of these technologies, including systems used in conflicts.  Such unfamiliarity could impact operators’ ability to exercise appropriate levels of human judgment.
    (E)  Lack of transparency:  agencies may have gaps in documentation of AI development and use, and the public may lack access to information about how AI is used in national security contexts because of the necessity to protect classified or controlled information.
    (F)  Lack of accountability:  training programs and guidance for agency personnel on the proper use of AI systems may not be sufficient, including to mitigate the risk of overreliance on AI systems (such as “automation bias”), and accountability mechanisms may not adequately address possible intentional or negligent misuse of AI-enabled technologies.
    (G)  Data spillage:  AI systems may reveal aspects of their training data — either inadvertently or through deliberate manipulation by malicious actors — and data spillage may result from AI systems trained on classified or controlled information when used on networks where such information is not permitted.
    (H)  Poor performance:  AI systems that are inappropriately or insufficiently trained, used for purposes outside the scope of their training set, or improperly integrated into human workflows may exhibit poor performance, including in ways that result in inconsistent outcomes or unlawful discrimination and harmful bias, or that undermine the integrity of decision-making processes.
    (I)  Deliberate manipulation and misuse:  foreign state competitors and malicious actors may deliberately undermine the accuracy and efficacy of AI systems, or seek to extract sensitive information from such systems.
         (d)  The United States Government’s AI governance and risk management policies must keep pace with evolving technology.
         (e)  Consistent with these goals:
    (i)   An AI framework, entitled “Framework to Advance AI Governance and Risk Management in National Security” (AI Framework), shall further implement this subsection.  The AI Framework shall be approved by the NSC Deputies Committee through the process described in National Security Memorandum 2 of February 4, 2021 (Renewing the National Security Council System), or any successor process, and shall be reviewed periodically through that process.  This process shall determine whether adjustments are needed to address risks identified in subsection 4.2(c) of this section and other topics covered in the AI Framework.  The AI Framework shall serve as a national security-focused counterpart to OMB’s Memorandum M-24-10 of March 28, 2024 (Advancing Governance, Innovation, and Risk Management for Agency Use of Artificial Intelligence), and any successor OMB policies.  To the extent feasible, appropriate, and consistent with applicable law, the AI Framework shall be as consistent as possible with these OMB policies and shall be made public.
    (ii)  The AI Framework described in subsection 4.2(e)(i) of this section and any successor document shall, at a minimum, and to the extent consistent with applicable law, specify the following:
    (A)  Each covered agency shall have a Chief AI Officer who holds primary responsibility within that agency, in coordination with other responsible officials, for managing the agency’s use of AI, promoting AI innovation within the agency, and managing risks from the agency’s use of AI consistent with subsection 3(b) of OMB Memorandum M-24-10, as practicable.
    (B)  Covered agencies shall have AI Governance Boards to coordinate and govern AI issues through relevant senior leaders from the agency.
    (C)  Guidance on AI activities that pose unacceptable levels of risk and that shall be prohibited.
    (D)  Guidance on AI activities that are “high impact” and require minimum risk management practices, including for high-impact AI use that affects United States Government personnel.  Such high-impact activities shall include AI whose output serves as a principal basis for a decision or action that could exacerbate or create significant risks to national security, international norms, human rights, civil rights, civil liberties, privacy, safety, or other democratic values.  The minimum risk management practices for high-impact AI shall include a mechanism for agencies to assess AI’s expected benefits and potential risks; a mechanism for assessing data quality; sufficient test and evaluation practices; mitigation of unlawful discrimination and harmful bias; human training, assessment, and oversight requirements; ongoing monitoring; and additional safeguards for military service members, the Federal civilian workforce, and individuals who receive an offer of employment from a covered agency.
    (E)  Covered agencies shall ensure privacy, civil liberties, and safety officials are integrated into AI governance and oversight structures.  Such officials shall report findings to the heads of agencies and oversight officials, as appropriate, using existing reporting channels when feasible.
    (F)  Covered agencies shall ensure that there are sufficient training programs, guidance, and accountability processes to enable proper use of AI systems.
    (G)  Covered agencies shall maintain an annual inventory of their high-impact AI use and AI systems and provide updates on this inventory to agency heads and the APNSA.
    (H)  Covered agencies shall ensure that whistleblower protections are sufficient to account for issues that may arise in the development and use of AI and AI systems.
    (I)  Covered agencies shall develop and implement waiver processes for high-impact AI use that balance robust implementation of risk mitigation measures in this memorandum and the AI Framework with the need to utilize AI to preserve and advance critical agency missions and operations.
    (J)  Covered agencies shall implement cybersecurity guidance or direction associated with AI systems issued by the National Manager for NSS to mitigate the risks posed by malicious actors exploiting new technologies, and to enable interoperability of AI across agencies.  Within 150 days of the date of this memorandum, and periodically thereafter, the National Manager for NSS shall issue minimum cybersecurity guidance and/or direction for AI used as a component of NSS, which shall be incorporated into AI governance guidance detailed in subsection 4.2(g)(i) of this section.
         (f)  The United States Government needs guidance specifically regarding the use of AI on NSS.
         (g)  Consistent with these goals:
    (i)  Within 180 days of the date of this memorandum, the heads of the Department of State, the Department of the Treasury, DOD, DOJ, Commerce, DOE, DHS, ODNI (acting on behalf of the 18 IC elements), and any other covered agency that uses AI as part of a NSS (Department Heads) shall issue or update guidance to their components/sub-agencies on AI governance and risk management for NSS, aligning with the policies in this subsection, the AI Framework, and other applicable policies.  Department Heads shall review their respective guidance on an annual basis, and update such guidance as needed.  This guidance, and any updates thereto, shall be provided to the APNSA prior to issuance.  This guidance shall be unclassified and made available to the public to the extent feasible and appropriate, though it may have a classified annex.  Department Heads shall seek to harmonize their guidance, and the APNSA shall convene an interagency meeting at least annually for the purpose of harmonizing Department Heads’ guidance on AI governance and risk management to the extent practicable and appropriate while respecting the agencies’ diverse authorities and missions.  Harmonization shall be pursued in the following areas:
    (A)  Implementation of the risk management practices for high-impact AI;
    (B)  AI and AI system standards and activities, including as they relate to training, testing, accreditation, and security and cybersecurity; and
    (C)  Any other issues that affect interoperability for AI and AI systems.
    Sec. 5.  Fostering a Stable, Responsible, and Globally Beneficial International AI Governance Landscape.  (a)  Throughout its history, the United States has played an essential role in shaping the international order to enable the safe, secure, and trustworthy global adoption of new technologies while also protecting democratic values.  These contributions have ranged from establishing nonproliferation regimes for biological, chemical, and nuclear weapons to setting the foundations for multi-stakeholder governance of the Internet.  Like these precedents, AI will require new global norms and coordination mechanisms, which the United States Government must maintain an active role in crafting.
         (b)  It is the policy of the United States Government that United States international engagement on AI shall support and facilitate improvements to the safety, security, and trustworthiness of AI systems worldwide; promote democratic values, including respect for human rights, civil rights, civil liberties, privacy, and safety; prevent the misuse of AI in national security contexts; and promote equitable access to AI’s benefits.  The United States Government shall advance international agreements, collaborations, and other substantive and norm-setting initiatives in alignment with this policy.
         (c)  Consistent with these goals:
    (i)  Within 120 days of the date of this memorandum, the Department of State, in coordination with DOD, Commerce, DHS, the United States Mission to the United Nations (USUN), and the United States Agency for International Development (USAID), shall produce a strategy for the advancement of international AI governance norms in line with safe, secure, and trustworthy AI, and democratic values, including human rights, civil rights, civil liberties, and privacy.  This strategy shall cover bilateral and multilateral engagement and relations with allies and partners.  It shall also include guidance on engaging with competitors, and it shall outline an approach to working in international institutions such as the United Nations and the Group of 7 (G7), as well as technical organizations.  The strategy shall:
    (A)  Develop and promote internationally shared definitions, norms, expectations, and standards, consistent with United States policy and existing efforts, which will promote safe, secure, and trustworthy AI development and use around the world.  These norms shall be as consistent as possible with United States domestic AI governance (including Executive Order 14110 and OMB Memorandum M-24-10), the International Code of Conduct for Organizations Developing Advanced AI Systems released by the G7 in October 2023, the Organization for Economic Cooperation and Development Principles on AI, United Nations General Assembly Resolution A/78/L.49, and other United States-supported relevant international frameworks (such as the Political Declaration on Responsible Military Use of AI and Autonomy) and instruments.  By discouraging misuse and encouraging appropriate safeguards, these norms and standards shall aim to reduce the likelihood of AI causing harm or having adverse impacts on human rights, democracy, or the rule of law.
    (B)  Promote the responsible and ethical use of AI in national security contexts in accordance with democratic values and in compliance with applicable international law.  The strategy shall advance the norms and practices established by this memorandum and measures endorsed in the Political Declaration on Responsible Military Use of AI and Autonomy.
    Sec. 6.  Ensuring Effective Coordination, Execution, and Reporting of AI Policy.  (a)  The United States Government must work in a closely coordinated manner to make progress on effective and responsible AI adoption.  Given the speed with which AI technology evolves, the United States Government must learn quickly, adapt to emerging strategic developments, adopt new capabilities, and confront novel risks.
         (b)  Consistent with these goals:
    (i)    Within 270 days of the date of this memorandum, and annually thereafter for at least the next 5 years, the heads of the Department of State, DOD, Commerce, DOE, ODNI (acting on behalf of the IC), USUN, and USAID shall each submit a report to the President, through the APNSA, that offers a detailed accounting of their activities in response to their taskings in all sections of this memorandum, including this memorandum’s classified annex, and that provides a plan for further action.  The Central Intelligence Agency (CIA), NSA, the Defense Intelligence Agency (DIA), and NGA shall submit reports on their activities to ODNI for inclusion in full as an appendix to ODNI’s report regarding IC activities.  NGA, NSA, and DIA shall submit their reports as well to DOD for inclusion in full as an appendix to DOD’s report.
    (ii)   Within 45 days of the date of this memorandum, the Chief AI Officers of the Department of State, DOD, DOJ, DOE, DHS, OMB, ODNI, CIA, DIA, NSA, and NGA, as well as appropriate technical staff, shall form an AI National Security Coordination Group (Coordination Group).  Any Chief AI Officer of an agency that is a member of the Committee on National Security Systems may also join the Coordination Group as a full member.  The Coordination Group shall be co-chaired by the Chief AI Officers of ODNI and DOD.  The Coordination Group shall consider ways to harmonize policies relating to the development, accreditation, acquisition, use, and evaluation of AI on NSS.  This work could include development of:
    (A)  Enhanced training and awareness to ensure that agencies prioritize the most effective AI systems, responsibly develop and use AI, and effectively evaluate AI systems;
    (B)  Best practices to identify and mitigate foreign intelligence risks and human rights considerations associated with AI procurement;
    (C)  Best practices to ensure interoperability between agency deployments of AI, to include data interoperability and data sharing agreements, as appropriate and consistent with applicable law;
    (D)  A process to maintain, update, and disseminate such trainings and best practices on an ongoing basis;
    (E)  AI-related policy initiatives to address regulatory gaps implicated by executive branch-wide policy development processes; and 
    (F)  An agile process to increase the speed of acquisitions, validation, and delivery of AI capabilities, consistent with applicable law.
    (iii)  Within 90 days of the date of this memorandum, the Coordination Group described in subsection (b)(ii) of this section shall establish a National Security AI Executive Talent Committee (Talent Committee) composed of senior AI officials (or designees) from all agencies in the Coordination Group that wish to participate.  The Talent Committee shall work to standardize, prioritize, and address AI talent needs and develop an updated set of Government-wide procedures for attracting, hiring, developing, and retaining AI and AI-enabling talent for national security purposes.  The Talent Committee shall designate a representative to serve as a member of the AI and Technology Talent Task Force set forth in Executive Order 14110, helping to identify overlapping needs and address shared challenges in hiring.
    (iv)   Within 365 days of the date of this memorandum, and annually thereafter for at least the next 5 years, the Coordination Group described in subsection (b)(ii) of this section shall issue a joint report to the APNSA on consolidation and interoperability of AI efforts and systems for the purposes of national security.
         Sec. 7.  Definitions.  (a)  This memorandum uses definitions set forth in section 3 of Executive Order 14110.  In addition, for the purposes of this memorandum:
    (i)     The term “AI safety” means the mechanisms through which individuals and organizations minimize and mitigate the potential for harm to individuals and society that can result from the malicious use, misapplication, failures, accidents, and unintended behavior of AI models; the systems that integrate them; and the ways in which they are used.
    (ii)    The term “AI security” means a set of practices to protect AI systems — including training data, models, abilities, and lifecycles — from cyber and physical attacks, thefts, and damage.
    (iii)   The term “covered agencies” means agencies in the Intelligence Community, as well as all agencies as defined in 44 U.S.C. 3502(1) when they use AI as a component of a National Security System, other than the Executive Office of the President.
    (iv)    The term “Critical Technical Artifacts” (CTAs) means information, usually specific to a single model or group of related models that, if possessed by someone other than the model developer, would substantially lower the costs of recreating, attaining, or using the model’s capabilities.  Under the technical paradigm dominant in the AI industry today, the model weights of a trained AI system constitute CTAs, as do, in some cases, associated training data and code.  Future paradigms may rely on different CTAs.
    (v)     The term “frontier AI model” means a general-purpose AI system near the cutting-edge of performance, as measured by widely accepted publicly available benchmarks, or similar assessments of reasoning, science, and overall capabilities.
    (vi)    The term “Intelligence Community” (IC) has the meaning provided in 50 U.S.C. 3003.
    (vii)   The term “open-weight model” means a model that has weights that are widely available, typically through public release.
    (viii)  The term “United States Government” means all agencies as defined in 44 U.S.C. 3502(1).
         Sec. 8.  General Provisions.  (a)  Nothing in this memorandum shall be construed to impair or otherwise affect:
    (i)   the authority granted by law to an executive department or agency, or the head thereof; or
    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
         (b)  This memorandum shall be implemented consistent with applicable law and subject to the availability of appropriations.
         (c)  This memorandum is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
                                  JOSEPH R. BIDEN JR.

    MIL OSI USA News

  • MIL-OSI Security: Two Former Georgia Deputies Plead Guilty to Violating Civil Rights of Jail Detainee

    Source: United States Attorneys General 11

    Two former Richmond County, Georgia, Sheriff’s Office deputies pleaded guilty yesterday to federal civil rights charges involving an assault on a jail detainee.

    Daniel D’Aversa, 52, and Melissa Morello, 28, pleaded guilty to an information charging both officers with one felony count of deprivation of civil rights under color of law.

    According to court documents, Morello was assigned as a jailer at Richmond County’s Charles D. Webster Detention Center, and D’Aversa was a corporal with the Richmond County Sheriff’s Office. On May 7, 2022, Morello and D’Aversa were working with other Richmond County Sheriff’s Office deputies to secure inmates who had caused flooding in a section of the jail. Fellow deputies deliberately removed the handcuffs of a compliant inmate and then proceeded to punch and kick him. Both Morello and D’Aversa pleaded guilty to failing to intervene or stop the assault on the inmate, who was not posing a threat to anyone at the time of the assault.

    U.S. District Court Judge J. Randal Hall will schedule sentencing for D’Aversa and Morello upon completion of pre-sentence investigations by U.S. Probation Services.

    Sentencing hearings will be set at a later date. Both D’Aversa and Morello face a maximum penalty of 10 years in prison, along with substantial fines and restitution, followed by up to three years of supervised release upon completion of any prison term. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and any other statutory factors.

    Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Jill E. Steinberg for the Southern District of Georgia and Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office made the announcement.

    The FBI Atlanta Field Office is investigating the case.

    Assistant U.S. Attorney George J.C. Jacobs III for the Southern District of Georgia and Trial Attorney Anita T. Channapati of the Justice Department’s Civil Rights Division are prosecuting the case.

    MIL Security OSI

  • MIL-OSI USA: Hold DOJ Accountable for Failure to Prosecute Noncitizen Voter Registration

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    It should be obvious to everyone — even Democrats — that we should prevent illegal immigrants from voting. Unfortunately, most Democrats in Congress do not agree. I was happy to cosponsor the SAVE Act in the Senate. This legislation aimed to secure our elections by requiring proof of citizenship to vote. It passed in the House, but not the Senate.

    On October 2, I joined Republican colleagues in a letter to U.S. Attorney General Merrick Garland exposing the Department of Justice’s (DOJ) failure to prevent noncitizens from registering to vote in America’s federal elections and its refusal to prosecute those who have done so. 

    We need more information about the incidence of noncitizens registering to vote, and steps that the DOJ is taking to deal with the issue and secure U.S. elections.

    In recent weeks, I have written two op-eds highlighting my concerns with election integrity. I urge you to read both.

    The Daily Caller: FBI Ignoring Real Threats To Election Integrity

    The Federalist: Democrat-Controlled States Refuse To Clean Voter Rolls And Fix Election Problems

    Under the Biden-Harris administration, more than 500,000 unaccompanied migrant children have crossed the southwest border without a parent or guardian to provide care.

    Last month, I joined a letter to President Biden and Vice President Harris calling out abuses in their Unaccompanied Migrant Children Program, namely the Department of Health and Human Services (HHS)’s cover-up of the crisis. HHS has failed to comply with two out of three Department of Homeland Security subpoenas and other information requests issued amid its investigation into more than 100 suspicious sponsors.

    The Biden-Harris administration limited background checks for sponsors of unaccompanied children, cut back on familial DNA testing at the border, and decreased information sharing with law enforcement.

    Cartel trafficking activity surged an estimated 2,500% from the Trump administration to the middle of the Biden-Harris term in 2022.  

    I joined another letter demanding Biden and Harris collect DNA samples from every immigrant the Department of Homeland Security (DHS) encounters, per the DNA Fingerprint Act of 2005. DHS missed three separate opportunities to gather DNA from the illegal immigrant who murdered Rachel Morin, a Maryland mother of five.

    MILTON: The Milton Area Chamber of Commerce hosted a town hall at the Milton House Museum. Before the event, I took a fascinating tour of Wisconsin’s only certified Underground Railroad site which is designated a National Historic Landmark.

    REESEVILLE:  Caine Warehousing hosted a town hall at their Dodge County campus. It was an honor to meet the three generations of Caines who run this successful family business. 

    WATERTOWN:  American Disposal and Lueck Recycling, another family run business, hosted a town hall at their facility. People are very concerned about open borders, the economy, and parental rights. 

    WATERTOWN: I always look forward to my visits to Maranatha Baptist University. I held a meeting with campus leadership and then answered questions from students, staff, and community members.  

    WHITEWATER: I enjoyed meeting with students at the University of Wisconsin Whitewater. When asked by a campus reporter about my main message for young people, I responded “jealously guard your freedom.” 

    MIL OSI USA News

  • MIL-OSI USA: FBI Ignoring Real Threats To Election Integrity

    US Senate News:

    Source: United States Senator for Wisconsin Ron Johnson

    Originally appeared in The Daily Caller

    I entered the Senate SCIF (sensitive compartmented information facility) Sept. 25 to attend an “All Members Classified Briefing on Foreign Threats to U.S. Elections.” I was a little late and arrived during the presentation of Avril Haines, the Director of National Intelligence. Her presentation was followed by FBI Director Christopher Wray and CISA Director Jen Easterly. As Republican Utah Sen. Mike Lee, quoting Yogi Berra, later described the briefing, “It was deja vu all over again.” 

    With straight faces, these directors of federal intelligence and law enforcement were once again warning the U.S. Senate that foreign actors were trying to influence our election. Well, duh! Unfortunately, most of my Senate colleagues seemed to be lapping it up and taking the briefing seriously. After a few minutes of listening to Director Haines, I could only shake my head in disgust. 

    I fully acknowledge that foreign threats are real and serious, but we are well aware they exist and have been persistent for decades. Except for maybe a few specific details, I heard nothing new, and certainly nothing that should be considered or kept classified. And I heard absolutely nothing about the most egregious examples of election interference in our lifetime, or the most significant threats to the integrity of the 2024 election. 

    I was the last senator given the opportunity to ask a question. By this time, there were only four senators left in the briefing. I began my questioning by pointing out that the most egregious act of election interference in our lifetime was the letter solicited by current Secretary of State Antony Blinken, engineered by former Deputy CIA Director Mike Morrell and fast tracked by then-CIA Director Gina Haspel. That letter was written Oct. 19, 2020, less than a month before the November election.  

    A bipartisan group of former U.S. intelligence officials signed the letter, which stated, without evidence, that the Hunter Biden laptop “has all the classic earmarks of a Russian information operation.” Keep in mind, the FBI had seized Hunter’s laptop almost a year earlier and knew full well it was authentic. In the small world and circles of U.S. intelligence and law enforcement, it is inconceivable that those intelligence officials were unaware or unable to ascertain that fact.  

    That letter itself was a “U.S. intelligence information operation.” And it worked exceedingly well. Because of that letter, the Hunter Biden laptop story was effectively suppressed as Russian disinformation, and Joe Biden became president. Subsequent polls show that had the public known about the laptop, Joe Biden would have lost the election. Election interference doesn’t get more egregious or effective than that.

    After making that point, I asked who within the Office of the Director of National Intelligence directed the unsolicited August 2020 FBI briefing given separately to Republican Iowa Sen. Chuck Grassley and me. That briefing, about us being targets of Russian disinformation, also provided no new information and was later leaked to the Washington Post to smear me, thereby interfering in my 2022 reelection. Four years after the briefing, and our relentless efforts to find out who directed it, we still have not been told. I didn’t get the answer Wednesday either.  

    Next, I asked Director Wray what the FBI was doing to investigate smurfing. This clear violation of campaign finance law was first revealed in March 2023 by investigative journalist, James O’Keefe. Using ActBlue, the Democrats’ donation platform, thousands of low-dollar donations are attributed to individuals allegedly without their knowledge — in one instance 5,776 donations totaling $754,124. Director Wray seemed clueless on the issue, and had no idea if the FBI was doing anything to investigate it. 

    At that point, the Democrat senator who chaired the briefing, concluded it. I wasn’t able to ask about my greatest concern regarding the 2024 election — illegal immigrants registering and voting in it. Don’t be under the illusion that just because noncitizens are ineligible to vote, Democrats aren’t willing to overlook that legal technicality to win an election. We already have plenty of evidence that illegal immigrants are registering, sometimes without their knowledge. Ohio just purged 499 illegal immigrants from its voter rolls following a multi-phase audit. Boston officials disclosed that 70 illegal aliens contacted county election officials asking to be  removed from voter registration lists. Virginia recently cancelled 6,303 noncitizen voter registrations. Oregon “mistakenly registered nearly 1,260 possible noncitizens to vote,” its DMV admits.  

    President Biden threw open the borders and directed federal departments to register voters. Does anyone believe that registration effort will be non-partisan, or that some percentage of the millions of illegal immigrants won’t vote in November? Based on last Wednesday’s briefing, I’m confident federal law enforcement won’t have any interest in investigating those crimes either.

    Ron Johnson is a Republican senator from Wisconsin.

    MIL OSI USA News

  • MIL-OSI Security: Los Angeles County Man Sentenced to 12 Years and 9 Months in Prison for Child Exploitation Conspiracy with Yuba County Man

    Source: Office of United States Attorneys

    SACRAMENTO, Calif. — Pedro Luis Millan, aka Peter Millan, 38, of Montebello, was sentenced today by U.S. District Judge Daniel J. Calabretta to 12 years and nine months in prison for conspiracy to sexually exploit a child, U.S. Attorney Phillip A. Talbert announced.

    According to court documents, in May 2021, Millan conspired with Brent Hooton, 51, of Marysville, to produce an image of a severely autistic child who was under the age of 12 engaged in sexually explicit conduct. Hooton produced the image and then sent it to Millan and other users over the Kik messaging app. Millan received that image, as well as additional sexual abuse images of the same child victim, from Hooton over the Kik app.

    This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.

    On Aug. 27, 2024, Hooton was sentenced to 27 years in prison for sexual exploitation of a child and distribution of child pornography.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

    MIL Security OSI

  • MIL-OSI Security: Former Teacher Sentenced to 20 Years in Prison for Producing Child Pornography with Hidden Cameras

    Source: Office of United States Attorneys

    ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a former St. Louis County, Missouri teacher to 20 years in prison for producing child pornography with hidden cameras.

    Judge Autrey also ordered Joseph R. Gutowski to pay $86,500 in restitution to his victims, including those who appeared in the child sexual abuse material he collected.

    Gutowski hid cameras in his office at Lafayette High School in Wildwood and in his home. He secretly filmed a minor and traded some of the images with others online. He was a member of an underground child pornography group on the cloud storage service Mega. He also traded videos he’d secretly recorded of an adult in the “Club Creep” group on Mega.

    Gutowski, 42, pleaded guilty in U.S. District Court in St. Louis in July to one count of producing of child pornography and one count of receiving child pornography.

    The FBI and the St. Louis County Police Department Special Investigations Unit investigated the case.  Assistant U.S. Attorney Jillian Anderson prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    MIL Security OSI

  • MIL-OSI Security: Former Federal Employee Pleads Guilty to Mishandling Classified Materials

    Source: Office of United States Attorneys

    Margaret Anne Ashby, 26, of Henderson, Nevada, pleaded guilty today for mishandling sensitive documents as a former employee of a Department of Defense component agency.

    As described in the plea agreement, starting in March 2020, Ashby was a civilian employee of a Department of Defense component agency located in the Southern District of Georgia, and during this time held a top secret security clearance as required for her employment.

    From February 2022 to May 2022, Ashby, without authority, knowingly removed documents and materials containing classified information “concerning the national defense or foreign relations of the United States . . . with the intent to retain them at unauthorized locations, including her residence in the Southern District of Georgia and in digital files saved via a personal computing device located in the Southern District of Georgia.”

    A sentencing date has not yet been set. Ashby faces a maximum penalty of five years in prison and three years of supervised release for mishandling sensitive documents, along with substantial financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jill E. Steinberg for the Southern District of Georgia, and Robert Wells of the FBI National Security Branch announced the case.

    The FBI investigated the case.

    Assistant U.S. Attorneys L. Alexander Hamner and Darron J. Hubbard for the Southern District of Georgia and Trial Attorney David J. Ryan of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL Security OSI

  • MIL-OSI Security: Santa Maria Man Charged with Weapon of Mass Destruction Offense in Connection with Bomb Attack in Lobby of County Courthouse

    Source: Office of United States Attorneys

    LOS ANGELES – A three-count federal grand jury indictment returned today charges a Santa Barbara County man with committing a bomb attack at a courthouse in Santa Maria in which several people were injured.

    Nathaniel James McGuire, 20, of Santa Maria, was charged with one count of using a weapon of mass destruction, one count of maliciously damaging a building by means of explosive, and one count of possessing unregistered destructive devices. McGuire has been in custody since his arrest in September, shortly after the attack. 

    McGuire’s arraignment is scheduled for October 25 in United States District Court in downtown Los Angeles.

    “The facts alleged in the indictment are disturbing,” said United States Attorney Martin Estrada. “The new charge of using a weapon of mass destruction underscores how seriously we are treating this misconduct and my office’s determination to hold accountable those who seek to bring violence upon our courts, law enforcement personnel, and the public.” 

    “Any time an individual commits such an act of terror, victims are traumatized and there is a potential for tragic consequences” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “If convicted, Mr. McGuire faces significant prison time thanks to the combined efforts of our local and federal law enforcement partners.” 

    “We are grateful that the FBI and the U.S. Attorney’s Office have taken this serious case to the grand jury, and that they have returned an indictment,” said Santa Barbara County Sheriff Bill Brown. “This crime shocked our entire community and we are pleased to see that the suspect in this case is being held accountable.”

    According to the indictment and criminal complaint, on September 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were near the bomb when it exploded.

    Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.

    Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe. McGuire told law enforcement he intended to re-enter the courthouse with the firearms in order to kill a judge.

    A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.

    An indictment is merely an allegation that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

    If convicted of all charges, McGuire would face a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of life in federal prison.

    The FBI’s Joint Terrorism Task Force, the Santa Barbara County Sheriff’s Office, and Santa Maria Police Department are investigating this matter.

    Assistant United States Attorneys Mark Takla and Kathrynne N. Seiden of the Terrorism and Export Crimes Section are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the Counterterrorism Section in the Department of Justice’s National Security Division.

    MIL Security OSI

  • MIL-OSI Security: Florida Man Sentenced to Federal Prison for Aggravated Identity Theft and Wire Fraud

    Source: Office of United States Attorneys

                Montgomery, Ala. – Today, Acting United States Attorney Kevin Davidson announced the sentencing of a Palm Bay, Florida man to 70 months in prison for using a fake identity to purchase a vehicle. On October 21, 2024, a federal judge sentenced 39-year-old Anthony Vila to 70 months in prison. In addition to the prison sentence, the judge also ordered that Vila serve three years of supervised release following his prison term. There is no parole in the federal system.

               According to his plea agreement and other court records, in early August of 2022, Vila contacted a salesman at a Prattville, Alabama car dealership via electronic communications regarding the purchase of a vehicle valued at $45,000. After being denied financing, Vila sent the personal identifying information of someone he claimed to be his aunt to be used by the dealership as a co-signor on the loan. The information included a copy of the co-signor’s driver’s license and a pay stub. However, both documents were counterfeit. Vila also provided a date of birth and social security number for his alleged co-signor and had an unknown female claiming to be his aunt speak to the dealership over the phone. The $45,000 loan was eventually approved. The individual that Vila falsely claimed to be his aunt had no knowledge of the transaction and had not given permission for her personal information to be used.

                On August 4, 2022, Vila picked up the vehicle from the dealership. Vila was apprehended with the vehicle a few days later in Montgomery. During a search of the vehicle, investigators found a laptop, printer, holograms, phone, firearm, and other items commonly used to commit identity theft. The phone contained over 100 stolen identities. The laptop contained evidence of the vehicle purchase described above. Vila pleaded guilty to wire fraud and aggravated identity theft on June 7, 2024. 

                The Federal Bureau of Investigation and Montgomery Police Department investigated this case. Assistant United States Attorney J. Patrick Lamb prosecuted the case. 

    MIL Security OSI

  • MIL-OSI Security: New Castle Man Sentenced to 51 Months in Prison for Fentanyl and Cocaine Trafficking

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

    PITTSBURGH, Pa. – A resident of New Castle, Pennsylvania, has been sentenced to 51 months in federal prison for trafficking fentanyl and cocaine, United States Attorney Eric G. Olshan announced today.

    Senior United States District Judge Arthur J. Schwab imposed the sentence on Dontae Blackshear, 26, also ordering Blackshear to serve six years of supervised release following his prison term. Blackshear previously pleaded guilty in this case to conspiring to distribute fentanyl and cocaine between May 2021 and October 2022.

    According to information presented to the Court, Blackshear was responsible for trafficking 20 grams of fentanyl and 100 grams of cocaine in 2022. He was on state parole at that time following a 2021 heroin trafficking conviction and prison sentence. The 2021 conviction was preceded by several convictions in separate state prosecutions since 2016, including for assault, two violent burglaries, fleeing/eluding, and conspiracy to commit theft.

    Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.

    United States Attorney Olshan commended the Federal Bureau of Investigation, Pennsylvania Office of Attorney General, United States Postal Inspection Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, Lawrence County Drug Task Force, Mercer County Drug Task Force, New Castle Police Department, Sharon Police Department, and Pennsylvania State Police for the investigation leading to the successful prosecution of Blackshear.

    MIL Security OSI

  • MIL-OSI Video: Ahead of the Threat Podcast: Episode One

    Source: Federal Bureau of Investigation (FBI) (video statements)

    In December 2021, UKG Kronos was hit with a ransomware attack that impacted thousands of business customers.

    On this episode of Ahead of the Threat, co-hosts Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI, speak to Aaron Ain, former CEO and current Executive Chair at UKG, who gives a firsthand account of what it’s like to lead a multinational technology company during major cyber incident. Learn how Aaron handled the extreme pressure of the situation, prioritized transparency to rebuild customer trust, and made enduring structural reforms to supply-chain security and cybersecurity at the board level.

    At the start of the episode, Bryan and Jamil discuss trending topics like Iran’s brazen effort to interfere in the 2024 U.S. presidential election, the Salt Typhoon hack of U.S. telecoms, and recent supply chain compromises.
    —————————————————
    Subscribe to Inside the FBI wherever you get your podcasts:
    Spotify: https://open.spotify.com/show/4H2d3cg…
    Apple Podcasts: https://podcasts.apple.com/us/podcast…
    Google Podcasts: https://podcasts.google.com/feed/aHR0…
    More ways to follow us: https://inside-the-fbi.transistor.fm/…

    Follow us on social media:
    X: https://twitter.com/fbi
    Facebook: https://facebook.com/FBI
    Instagram: https://instagram.com/fbi
    YouTube: youtube.com/user/fbi

    https://www.youtube.com/watch?v=xOsOCAaH2Ms

    MIL OSI Video

  • MIL-OSI Security: Election Officer Appointed for the District of South Dakota for the November 2024 General Election

    Source: Office of United States Attorneys

    Assistant U.S. Attorney Ann M. Hoffman to Oversee Election Day Program

    SIOUX FALLS – United States Attorney Alison J. Ramsdell announced today that Assistant U.S. Attorney (AUSA) Ann M. Hoffman will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Hoffman has been appointed to serve as the District Election Officer (DEO) for the District of South Dakota, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

    “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Ramsdell. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice is committed to protecting the integrity of the election process and bringing to justice those who seek to corrupt it.”

    The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

    To respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Hoffman will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (605) 838-9446. In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (605) 334-6881.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C., by filing a complaint form at https://civilrights.justice.gov/ or by phone at (800) 253-3931.

    U.S. Attorney Ramsdell further stated, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

    Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency. 

    MIL Security OSI

  • MIL-OSI Security: Federal Jury finds Mission Man Guilty of Aggravated Sexual Abuse and Kidnapping

    Source: Office of United States Attorneys

    PIERRE – United States Attorney Alison J. Ramsdell announced today that Canku Martinez, age 22, of Mission, South Dakota, was found guilty of Aggravated Sexual Abuse and Kidnapping following a four-day federal jury trial in Pierre, South Dakota. The verdict was returned on October 18, 2024.

    Each charges carries a maximum sentence of life in federal prison, and/or a $250,000 fine, five years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

    Martinez was indicted by a federal grand jury in February of 2024.

    At trial, the evidence established in the early morning hours of October 29, 2024, in the Rosebud Indian Reservation, Martinez agreed to give a juvenile a ride home from a party near Rosebud, South Dakota. Rather than give her a ride home, however, Martinez drove her to a secluded area outside of Rosebud and made sexual advances. When the juvenile rejected his advances, Martinez produced a knife and forced her to engage in sexual activity. Martinez subsequently dropped the victim off at her residence, told her not to tell anyone what he had done, and left the area shortly thereafter.

    This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    This case was investigated by the FBI, the Rosebud Sioux Tribe Law Enforcement Services, and the Winner (SD) Police Department. Senior Litigation Counsel Kirk Albertson prosecuted the case.   

    A presentence investigation was ordered, and a sentencing date has not been set. Martinez was remanded to the custody of the U.S. Marshals Service pending sentencing.

    MIL Security OSI

  • MIL-OSI Security: Justice Department Announces Four Cases Brought by Election Threats Task Force

    Source: Office of United States Attorneys

    WASHINGTON — The Justice Department’s Election Threats Task Force (ETTF) announced developments this week in four cases involving interstate transmissions of threats to election personnel and other victims.

    Teak Brockbank, 45, of Cortez, Colorado, pleaded guilty today to threatening a Colorado election official, and admitted to making other threats to an Arizona election official, a Colorado state judge, and federal law enforcement agents between September 2021 and July 2024.

    Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced on Monday to 30 months in prison for sending messages threatening violence to election workers with Maricopa County Elections in Phoenix on Aug. 2-4, 2022, during and immediately following the Arizona primary elections.

    Richard Glenn Kantwill, 61, of Tampa, Florida, was charged on Monday for allegedly sending a threat on Feb. 9 to an election official in addition to already pending charges for threats made to three other victims based on their political commentary in 2019 and 2020.

    John Pollard, 62, of Philadelphia, was charged on Monday for allegedly threatening on Sept. 6 to kill a representative of a Pennsylvania state political party who was recruiting official poll watchers.

    “As we approach Election Day, the Justice Department’s warning remains clear: anyone who illegally threatens an election worker, official, or volunteer will face the consequences,” said Attorney General Merrick B. Garland. “Over the past three and a half years, the Justice Department has been aggressively investigating and prosecuting those who threaten the public servants who administer our elections, and we will continue to do so in the weeks ahead. For our democracy to function, Americans who serve the public must be able to do their jobs without fearing for their lives.”

    “Threats to election workers are threats to our democratic process,” said Deputy Attorney General Lisa Monaco. “No one should face violence or threats of violence simply for doing their job. The actions announced today make clear that we will not tolerate those who use or threaten violence in an effort to undermine our democratic institutions. To carry out their essential work, election officials must be free from improper influence, physical threats, and others forms of intimidation.”

    “Our elections are made by possible by the hard work and patriotism of election workers in communities across the country who are also our neighbors, relatives and friends, and they deserve to do this important work without being subjected to threats,” said FBI Director Christopher Wray. “The fact that election workers need to be worried about their security is incomprehensible and unacceptable. While these four cases are examples of the kinds of threats election workers are unfortunately facing, these cases also represent the FBI’s dedication in holding accountable those who undermine our democracy with this conduct. The FBI and our partners on the ETTF will work tirelessly to charge and arrest those callous enough to make these threats and make sure they are held accountable. Free, fair, and safe elections are critical to our country and our democratic ideals.”

    “These defendants made serious threats of violence against members of the election community. Threats like these strike at the very heart of our democracy,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases announced today underscore the Criminal Division’s commitment to defending our democracy, safeguarding our elections, and protecting all election workers. Through the ETTF, the Department will vigorously investigate and prosecute all criminal threats against members of the election community.”

    The four cases were all brought by the ETTF. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting U.S. Attorneys’ Offices and FBI Field Offices nationwide as they join the task force in its critical work.

    Under the leadership of the Attorney General and the Deputy Attorney General, the task force is led by the Criminal Division’s Public Integrity Section (PIN) and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

    United States v. Brockbank (District of Colorado)

    According to court documents, Brockbank admitted to using three social media accounts to post messages threatening Colorado and Arizona election officials between September 2021 and July 2024.

    On Sept. 22, 2021, Brockbank posted the following message on social media:

    “[Election Official-1] . . . needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”

    As part of his plea, Brockbank also admitted to posting a message on Aug. 4, 2022 referring to election officials in Arizona and Colorado, stating: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”

    In addition, Brockbank admitted to posting a message threatening a Colorado state judge on Oct. 2, 2021: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”

    Brockbank further admitted to threatening federal law enforcement on July 13, 2024, posting: ““I believe every single FBI agent deserves to go explain themselves to our creator right away!!!! I am more than willing to send any/All of you there.”

    Finally, Brockbank admitted to illegally possessing multiple firearms and ammunition.

    “The security and sanctity of the American election system is core to the foundation of our Democracy,” said Acting United States Attorney Matt Kirsch for the District of Colorado. “We will prosecute people who threaten elections, election officials, or election workers to the fullest extent of the law.”

    Brockbank pleaded guilty today to interstate transmission of a threat. He is scheduled to be sentenced on Feb. 3, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Denver Field Office is investigating the case.

    Acting Deputy Director Jonathan E. Jacobson of PIN’s Election Crimes Branch and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.

    United States v. Ogstad (District of Arizona)

    According to court documents, on or about Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through on or about Aug. 4, 2022, Ogstad sent multiple threatening direct messages to a social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated: (1) “You did it! Now you are f*****.. Dead. You will all be executed for your crimes”; (2) F*** you! You are caught! They have it all. You f****** are dead”; (3) “You are lying, cheating m****** f******* . . . you better not come in my church, my business or send your kids to my school. You are f****** stupid if you think your lives are safe”; and (4) “You f******  are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking stupid. Everyone knows you are lots, cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang f******!” ” In the course of his messages to the recipient, Ogstad transmitted an image of the character “Woody,” from the Toy Story film franchise, lying face down with an unidentified projectile in its back.

    “In this election season we honor and respect those public servants who enable Americans to exercise their constitutional right to vote,” said U.S. Attorney Gary Restaino for the District of Arizona. “And we seek to protect all election workers from intimidation and harassment. Threats of violence, whether conveyed by words or deeds or pictures, will be met in this District with robust prosecution.”

    Ogstad was sentenced on Monday to 30 months in prison, followed by three years of supervised release and a $1,000 fine, after pleading guilty on July 25 to one count of interstate transmission of a threat.

    The FBI Phoenix Field Office investigated the case, with substantial assistance from the FBI Birmingham Field Office.

    Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona prosecuted the case.

    United States v. Kantwill (Middle District of Florida)

    According to court documents, from September 2019 to July 2020, Kantwill, a dentist, sent over 100 threats to various public figures via Facebook and Instagram messages, email, and text. As charged in the superseding information filed on Monday, those threats included a threat sent via email to an author, a threat sent via text to a religious leader, and a threat sent via Instagram to a television personality. From April 2022 to April 2024, Kantwill also sent at least seven additional threats to four public figures via Facebook, including a threat to an election official in another state on Feb. 9, when Kantwill wrote: “You are a degenerate c***. and you are now the target of our own investigation. Take note because liberal t***s like you get raped in alleys, by really big black guys that serve our cause. So, you t*** are going to get raped by at least 5 n*****s, and do nothing. You are the number 1 target, you degenerate t***.”

    “If you threaten someone with violence, we will take you at your word,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Law enforcement officers and members of my office will work together to hold accountable and federally prosecute individuals who threaten to injure or kill others.”

    Kantwill is charged with four counts of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Trial Attorney Aaron L. Jennen of PIN and Assistant U.S. Attorney Abigail K. King for the Middle District of Florida are prosecuting the case, with assistance from Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado.

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

    United States v. Pollard (Western District of Pennsylvania)

    According to the indictment, on Sept. 6, Pollard sent threatening text messages to Victim 1, a resident of the Western District of Pennsylvania. Victim 1 had previously posted online, in Victim 1’s capacity as an employee of a state political party, that Victim 1 was recruiting volunteers to “help[] observe at the polls on Election Day” and included Victim 1’s phone number. Pollard allegedly texted Victim 1 that he was “interested in being a poll watcher” and included Victim 1’s first name. Pollard then allegedly texted three threats to Victim 1: (1) “I will KILL YOU IF YOU DON’T ANSWER ME!”; (2) “Your days are numbered, B****!”; and (3) “GONNA F***ING FIND YOU AND SKIN YOU ALIVE AND USE YOUR SKIN FOR F***ING TOILET PAPER, YOU F***ING KKK**T!”

    “Threats of violence have no place in our society,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This is no less true when those threats of violence are directed at individuals associated with our electoral process — in this case, someone seeking to organize poll watchers. This conduct will not be tolerated in our district, and we will continue to work with our partners at the FBI to prosecute these offenses with the full weight of the law.”

    Pollard was arrested on Monday and appeared in federal court in Philadelphia. He is charged with one count of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Pittsburgh Field Office is investigating the case.

    Trial Attorney Jacob R. Steiner of PIN and Assistant U.S. Attorney Nicole A. Stockey for the Western District of Pennsylvania are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

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

    *****

    To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

    MIL Security OSI

  • MIL-OSI Security: Bank fraud scheme sends Georgia man to federal prison for four years

    Source: Office of United States Attorneys

    MISSOULA — A federal judge today sentenced a Georgia man to four years in prison, to be followed by five years of supervised release, for a scheme that involved recruiting homeless individuals to cash fraudulent checks at Montana financial institutions, U.S. Attorney Jesse Laslovich said.

    The defendant, Akia Demetrius Hills, 30, of Atlanta, Georgia, pleaded guilty in June to bank fraud and aggravated identity theft.

    U.S. District Judge Dana L. Christensen presided. The court also ordered $226,500.69 in restitution.

    In court documents, the government alleged that Hills and others stole mail and checks, and then fraudulently used the identities of various individuals to cash fraudulent checks throughout Montana financial institutions. On May 10, 2019, Hills and others instructed a man to enter numerous banks to attempt to cash a fraudulent check. Eventually, one bank accepted the fraudulent check, which totaled $6,734. Hills traveled across the country to defraud banks and attempted to use homeless individuals to cash fraudulent checks at banks.

    The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.

    XXX

    MIL Security OSI

  • MIL-OSI Security: California Man Charged with Weapon of Mass Destruction Offense in Connection with Bomb Attack in Lobby of County Courthouse

    Source: Office of United States Attorneys

    A three-count federal grand jury indictment was returned today charging Nathaniel James McGuire, 20, of Santa Maria, California, with committing a bomb attack at a courthouse in Santa Maria in which several people were injured. McGuire’s arraignment is scheduled for Oct. 25 in the Central District of California.

    According to the indictment and criminal complaint, on Sept. 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were near the bomb when it exploded.

    Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.

    Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe. McGuire told law enforcement he intended to re-enter the courthouse with the firearms in order to kill a judge.

    A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.

    McGuire was charged with one count of using a weapon of mass destruction, one count of maliciously damaging a building by means of explosive, and one count of possessing unregistered destructive devices. McGuire has been in custody since his arrest in September, shortly after the attack.

    If convicted of all charges, McGuire faces a mandatory minimum penalty of seven years in prison and a statutory maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Martin Estrada for the Central District of California, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch announced the case.

    The FBI is investigating the case.

    Assistant U.S. Attorneys Mark Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the National Security Division’s Counterterrorism Section.

    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: Northrim BanCorp Earns $8.8 Million, or $1.57 Per Diluted Share, in Third Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    ANCHORAGE, Alaska, Oct. 23, 2024 (GLOBE NEWSWIRE) — Northrim BanCorp, Inc. (NASDAQ:NRIM) (“Northrim” or the “Company”) today reported net income of $8.8 million, or $1.57 per diluted share, in the third quarter of 2024, compared to $9.0 million, or $1.62 per diluted share, in the second quarter of 2024, and $8.4 million, or $1.48 per diluted share, in the third quarter a year ago. The increase in third quarter 2024 profitability as compared to the third quarter a year ago was primarily the result of an increase in mortgage banking income and higher net interest income, which was only partially offset by higher other operating expenses and a higher provision for credit losses.

    Dividends per share in the third quarter of 2024 increased to $0.62 per share as compared to $0.61 per share in the second quarter of 2024 and $0.60 per share in the third quarter of 2023.

    “We had strong deposit-funded loan growth in the third quarter,” said Mike Huston, Northrim’s President and Chief Executive Officer. “Deposits and loans both increased 7% from the end of the second quarter. Our deposit market share increased by 4% in the past year and by 42% in the past five years as our investments in people, expanded branch network, and differentiated service continue to attract new customers and strengthen existing relationships.”

    Third Quarter 2024 Highlights:

    • Net interest income in the third quarter of 2024 increased 7% to $28.8 million compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023.
    • Net interest margin on a tax equivalent basis (“NIMTE”)* was 4.35% for the third quarter of 2024, up 5-basis points from the second quarter of 2024 and up 14-basis points from the third quarter a year ago.
    • Return on average assets (“ROAA”) was 1.22% and return on average equity (“ROAE”) was 13.69% for the third quarter of 2024.
    • Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago, primarily due to new customer relationships, expanding market share, and to retaining certain mortgages originated by Residential Mortgage, a subsidiary of Northrim Bank (the “Bank”), in the loan portfolio.
    • Total deposits were $2.63 billion at September 30, 2024, up 7% from the preceding quarter, and up 8% from $2.43 billion a year ago. Non-interest bearing demand deposits increased 8% from the preceding quarter and decreased slightly year-over-year to $763.6 million at September 30, 2024 and represent 29% of total deposits.
    • The average cost of interest-bearing deposits was 2.24% at September 30, 2024, up from 2.21% at June 30, 2024 and 1.75% at September 30, 2023.
    • Mortgage loan originations increased to $248.0 million in the third quarter of 2024, up from $181.5 million in the second quarter of 2024 and $153.4 million in the third quarter a year ago. Mortgage loans funded for sale were $210.0 million in the third quarter of 2024, compared to $152.3 million in the second quarter of 2024 and $131.9 million in the third quarter of 2023.
    Financial Highlights   Three Months Ended 
    (Dollars in thousands, except per share data) September 30,
    2024
    June 30, 2024 March 31, 2024 December 31,
    2023
    September 30,
    2023
    Total assets $2,963,392   $2,821,668 $2,759,560   $2,807,497   $2,790,189  
    Total portfolio loans $2,007,565   $1,875,907 $1,811,135   $1,789,497   $1,720,091  
    Total deposits $2,625,567   $2,463,806 $2,434,083   $2,485,055   $2,427,930  
    Total shareholders’ equity $260,050   $247,200 $239,327   $234,718   $225,259  
    Net income $8,825   $9,020 $8,199   $6,613   $8,374  
    Diluted earnings per share $1.57   $1.62 $1.48   $1.19   $1.48  
    Return on average assets   1.22 %   1.31 %   1.19 %   0.93 %   1.22 %
    Return on average shareholders’ equity   13.69 %   14.84 %   13.84 %   11.36 %   14.67 %
    NIM   4.29 %   4.24 %   4.16 %   4.06 %   4.15 %
    NIMTE*   4.35 %   4.30 %   4.22 %   4.12 %   4.21 %
    Efficiency ratio   66.11 %   68.78 %   68.93 %   72.21 %   66.64 %
    Total shareholders’ equity/total assets   8.78 %   8.76 %   8.67 %   8.36 %   8.07 %
    Tangible common equity/tangible assets*   8.28 %   8.24 %   8.14 %   7.84 %   7.54 %
    Book value per share $47.27   $44.93   $43.52   $42.57   $40.60  
    Tangible book value per share* $44.36   $42.03   $40.61   $39.68   $37.72  
    Dividends per share $0.62   $0.61   $0.61   $0.60   $0.60  
    Common stock outstanding   5,501,943     5,501,562     5,499,578     5,513,459     5,548,436  


    *
    References to NIMTE, tangible book value per share, and tangible common equity to tangible common assets, (all of which exclude intangible assets) represent non-GAAP financial measures. Management has presented these non-GAAP measurements in this earnings release, because it believes these measures are useful to investors. See the end of this release for reconciliations of these non-GAAP financial measures to GAAP financial measures.

    Alaska Economic Update
    (Note: sources for information included in this section are included on page 12.)

    The Alaska Department of Labor (“DOL”) has reported Alaska’s seasonally adjusted unemployment rate in August of 2024 was 4.6% compared to the U.S. rate of 4.2%. The total number of payroll jobs in Alaska, not including uniformed military, increased 1.8% or 6,400 jobs between August of 2023 and August of 2024.

    According to the DOL, the Construction sector had the largest growth in new jobs through August compared to the prior year. The Construction sector added 2,600 positions for a year over year growth rate of 12.9% between August of 2023 and 2024. The larger Health Care sector grew by 2,000 jobs for an annual growth rate of 4.9% over the same period. The Oil & Gas sector increased by 6.5% or 500 new direct jobs. Professional and Business Services added 1,000 jobs year over year through August of 2024, up 3.4%. The Government sector grew by 700 jobs for 0.9% growth, adding 500 Federal jobs and 200 Local government positions in Alaska. The only sectors to decline between August 2023 and August 2024 were Manufacturing (primarily seafood processing) shrinking 1,300 positions and Information, down 200 jobs.

    Alaska’s Gross State Product (“GSP”) in the second quarter of 2024, was estimated to be $69.8 billion in current dollars, according to the Federal Bureau of Economic Analysis (“BEA”). Alaska’s inflation adjusted “real” GSP increased 6.5% in 2023, placing Alaska fifth best of all 50 states. However, in the second quarter of 2024 Alaska decreased at an annualized rate of 1.1%, compared to the average U.S. growth rate of 3%. Alaska’s real GSP decline in the second quarter of 2024 was primarily caused by a slowdown in the Mining, Oil & Gas; and Transportation and Warehousing sectors.

    The BEA also calculated Alaska’s seasonally adjusted personal income at $55.4 billion in the second quarter of 2024. This was an annualized improvement of 4% for Alaska, compared to the national average of 5.3%.

    The monthly average price of Alaska North Slope (“ANS”) crude oil was at an annual high of $89.05 in April of 2024 and averaged $74.06 in September of this year. The Alaska Department of Revenue (“DOR”) calculated ANS crude oil production was 479 thousand barrels per day (“bpd”) in Alaska’s fiscal year ending June 30, 2023 and declined to 461 thousand bpd in Alaska’s fiscal year 2024. Starting in fiscal year 2025 it is projected to grow to 477 thousand bpd. The DOR projects the number to grow rapidly and reach 640 thousand bpd by fiscal year 2033. This is primarily a result of new production coming on-line in and around the NPR-A region west of Prudhoe Bay.

    According to the Alaska Multiple Listing Services, the average sales price of a single family home in Anchorage rose 5.2% in 2023 to $480,207, following a 7.6% increase in 2022. This was the sixth consecutive year of price increases.   In the first nine months of 2024 the average price continues to increase 6.8% to an average sale of
    $512,815.

    The average sales price for single family homes in the Matanuska Susitna Borough rose 4% in 2023 to $397,589, after increasing 9.9% in 2022. This continues a trend of average price increases for more than a decade in the region. In the first nine months of 2024 the average sales price increased 4.6% in the Matanuska Susitna Borough to $415,709. These two markets represent where the vast majority of the Bank’s residential lending activity occurs.

    The Alaska Multiple Listing Services reported a 1.2% decrease in the number of units sold in Anchorage when comparing January to September of 2023 and 2024. There were 5.4% less homes sold in the Matanuska Susitna Borough for the same nine month time period in 2024 compared to the prior year.

    Northrim Bank sponsors the Alaskanomics blog to provide news, analysis, and commentary on Alaska’s economy. Join the conversation at Alaskanomics.com, or for more information on the Alaska economy, visit: www.northrim.com and click on the “Business Banking” link and then click “Learn.” Information from our website is not incorporated into, and does not form, a part of this earnings release.

    Review of Income Statement

    Consolidated Income Statement

    In the third quarter of 2024, Northrim generated a ROAA of 1.22% and a ROAE of 13.69%, compared to 1.31% and 14.84%, respectively, in the second quarter of 2024 and 1.22% and 14.67%, respectively, in the third quarter a year ago.

    Net Interest Income/Net Interest Margin

    Net interest income increased 7% to $28.8 million in the third quarter of 2024 compared to $27.1 million in the second quarter of 2024 and increased 9% compared to $26.4 million in the third quarter of 2023. Interest expense on deposits increased to $10.1 million in the third quarter of 2024 compared to $9.5 million in the second quarter and $7.1 million in the third quarter of 2023.

    NIMTE* was 4.35% in the third quarter of 2024 up from 4.30% in the preceding quarter and 4.21% in the third quarter a year ago. NIMTE* increased 14 basis points in the third quarter of 2024 compared to the third quarter of 2023 primarily due to a favorable change in the mix of earning-assets towards higher loan balances as a percentage of total earning-assets, higher earning-assets, and higher yields on those assets which were only partially offset by an increase in costs on interest-bearing deposits. The weighted average interest rate for new loans booked in the third quarter of 2024 was 7.24% compared to 7.90% in the second quarter of 2024 and 7.44% in the third quarter a year ago. The yield on the investment portfolio in the third quarter of 2024 decreased slightly to 2.80% from 2.82% in the second quarter of 2024 and increased from 2.43% in the third quarter of 2023. “We continue to see the benefit of new loan volume and repricing outweigh the modest increase in deposit costs in the third quarter of 2024,” said Jed Ballard, Chief Financial Officer. Northrim’s NIMTE* continues to remain above the peer average of 3.13% posted by the S&P U.S. Small Cap Bank Index with total market capitalization between $250 million and $1 billion as of June 30, 2024.

    Provision for Credit Losses

    Northrim recorded a provision for credit losses of $2.1 million in the third quarter of 2024, which was comprised of of a $325,000 provision for credit losses on unfunded commitments and a provision for credit losses on loans of $1.7 million. The provision for unfunded commitments was primarily due to an increase in unfunded commitments, as well as an increase in estimated loss rates due to changes in mix and management’s assessment of economic conditions. The increase to the provision for credit losses on loans was primarily a result of loan growth, as well as an increase in the provision for loans individually evaluated and an increase in estimated loss rates. This compares to a benefit to the provision for credit losses of $120,000 in the second quarter of 2024, and provision for credit losses of $1.2 million in the third quarter a year ago.

    Nonperforming loans, net of government guarantees, increased slightly during the quarter to $5.0 million at September 30, 2024, compared to $4.8 million at June 30, 2024, and decreased from $5.1 million at September 30, 2023.

    The allowance for credit losses on loans was 394% of nonperforming loans, net of government guarantees, at the end of the third quarter of 2024, compared to 365% three months earlier and 326% a year ago.

    Other Operating Income

    In addition to home mortgage lending, Northrim has interests in other businesses that complement its core community banking activities, including purchased receivables financing and wealth management. Other operating income contributed $11.6 million, or 29% of total third quarter 2024 revenues, as compared to $9.6 million, or 26% of revenues in the second quarter of 2024, and $8.0 million, or 23% of revenues in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the preceding quarter and the third quarter of 2023 was primarily the result of an increase in mortgage banking income due to a higher volume of mortgage activity. See further discussion regarding mortgage activity during the second quarter contained under “Home Mortgage Lending” below. The fair market value of marketable equity securities increased $576,000 in the third quarter of 2024 compared to a decrease of $60,000 in the prior quarter and an increase of $12,000 in the third quarter of 2023. The increase in other operating income in the third quarter of 2024 as compared to the third quarter a year ago was due primarily to an increase in mortgage banking income as a result of higher volume of mortgage activity due to our expansion in Arizona, Colorado, and the Pacific Northwest markets, as well as an increase in fair value of marketable equity securities.

    Other Operating Expenses

    Operating expenses were $26.7 million in the third quarter of 2024, compared to $25.2 million in the second quarter of 2024, and $22.9 million in the third quarter of 2023. The increase in other operating expenses in the third quarter of 2024 compared to the second quarter of 2024 was primarily due to an increase in salaries and other personnel expense, including $653,000 in mortgage commissions expense due to higher mortgage volume and a $979,000 increase in profit share expense, which was partially offset by a $836,000 decrease in medical claims expense. The increase in other operating expenses in the third quarter of 2024 compared to a year ago was primarily due to an increase in salaries and other personnel expense, as well as an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022.

    Income Tax Provision

    In the third quarter of 2024, Northrim recorded $2.8 million in state and federal income tax expense for an effective tax rate of 24.2%, compared to $2.5 million, or 21.9% in the second quarter of 2024 and $1.9 million, or 18.4% in the third quarter a year ago. The increase in the tax rate in the third quarter of 2024 as compared to the third quarter of 2023 is primarily the result of a decrease in tax credits and tax exempt interest income as a percentage of pre-tax income in 2024 as compared to 2023.

    Community Banking

    In the most recent deposit market share data from the FDIC, Northrim’s deposit market share in Alaska increased to 15.66% of Alaska’s total deposits as of June 30, 2024 compared to 15.04% of Alaska’s total deposits as of June 30, 2023. This represents 62 basis points of growth in market share percentage for Northrim during that period while, according to the FDIC, the total deposits in Alaska were up 2.3% during the same period. Northrim opened a branch in Kodiak in the first quarter of 2023, a loan production office in Homer in the second quarter of 2023, a permanent branch in Nome in the third quarter of 2023, and a branch in Homer in the first quarter of 2024. See below for further discussion regarding the Company’s deposit movement for the quarter.

    Northrim is committed to meeting the needs of the diverse communities in which it operates. As a testament to that support, the Bank has branches in four regions of Alaska identified by the Federal Reserve as ‘distressed or underserved non-metropolitan middle-income geographies’.

    Net interest income in the Community Banking segment totaled $25.9 million in the third quarter of 2024, compared to $24.3 million in the second quarter of 2024 and $24.1 million in the third quarter of 2023. Net interest income increased 7% in the third quarter of 2024 as compared to the second quarter of 2024 mostly due to higher interest income on loans. This increase was only partially offset by higher interest expense on deposits and borrowings and lower interest income on portfolio investments.

    Other operating expenses in the Community Banking segment totaled $19.1 million in the third quarter of 2024, up $588,000 or 3% from $18.5 million in the second quarter of 2024, and up $2.1 million or 13% from $16.9 million in the third quarter a year ago. The increase in the third quarter of 2024 as compared to the prior quarter was mostly due to an increases in salaries and other personnel expense, marketing expense, and professional fees. The increase in the third quarter of 2024 as compared to the third quarter a year ago was primarily due to an increase in OREO expense due to a gain on sale recorded in the third quarter of 2023 for proceeds received related to a government guarantee on an OREO property sold in December 2022, as well as increases in salaries and other personnel expense and marketing expense.

    The following tables provide highlights of the Community Banking segment of Northrim:

      Three Months Ended
      September   March 31, December September
    (Dollars in thousands, except per share data) 30, 2024 June 30, 2024   2024   31, 2023   30, 2023
    Net interest income $25,901 $24,278 $24,215 $24,456 $24,050
    (Benefit) provision for credit losses 1,492 (184)   197   885   1,190
    Other operating income 4,540 3,693   3,813   4,048   3,597
    Other operating expense 19,085 18,497   17,552   18,516   16,946
    Income before provision for income taxes 9,864 9,658   10,279   9,103   9,511
    Provision for income taxes 2,316 2,004   2,242   1,941   1,709
    Net income $7,548 $7,654 $8,037 $7,162 $7,802
    Weighted average shares outstanding, diluted 5,583,055 5,558,580   5,554,930   5,578,491   5,624,906
    Diluted earnings per share $1.34 $1.37 $1.45 $1.29 $1.39
      Year-to-date
    (Dollars in thousands, except per share data) September
    30, 2024
    September
    30, 2023
    Net interest income $ 74,394 $ 71,502
    Provision for credit losses   1,505   2,957
    Other operating income   12,046   9,564
    Other operating expense   55,134   52,168
    Income before provision for income taxes   29,801   25,941
    Provision for income taxes   6,562   5,216
    Net income Community Banking segment $ 23,239 $ 20,725
    Weighted average shares outstanding, diluted   5,574,135   5,688,687
    Diluted earnings per share $ 4.16 $ 3.64

    Home Mortgage Lending

    During the third quarter of 2024, mortgage loans funded for sale increased to $210.0 million, compared to $152.3 million in the second quarter of 2024, and $131.9 million in the third quarter of 2023.

    During the third quarter of 2024, the Bank purchased Residential Mortgage-originated loans of $38.1 million of which roughly two-thirds were jumbos and one-third were mortgages for second homes, with a weighted average interest rate of 6.59%, up from $29.2 million and 6.82% in the second quarter of 2024, and up from $21.6 million and 6.60% in the third quarter of 2023. The increase in mortgage loans funded for investment has increased net interest income in the Home Mortgage Lending segment. Net interest income contributed $2.9 million to total revenue in the third quarter of 2024, up from $2.8 million in the prior quarter, and up from $2.3 million in the third quarter a year ago.

    The Arizona, Colorado, and the Pacific Northwest mortgage expansion markets were responsible for 20% of Residential Mortgage’s $248 million total production in the third quarter of 2024, 22% of $182 million total production in the second quarter of 2024, and 8% of $153 million total production in the third quarter of 2023.

    The net change in fair value of mortgage servicing rights decreased mortgage banking income by $968,000 during the third quarter of 2024 compared to a decrease of $81,000 for the second quarter of 2024 and a decrease of $310,000 for the third quarter of 2023. Mortgage servicing revenue increased to $2.6 million in the third quarter of 2024 from $2.2 million in the prior quarter and from $2.4 million in the third quarter of 2023 due to an increase in production of Alaska Housing Finance Corporation (AHFC) mortgages, which contribute to servicing revenues at origination. In the third quarter of 2024, the Company’s servicing portfolio increased $64.8 million, which included $87.3 million in new mortgage loans, net of amortization and payoffs of $22.5 million as compared to a net increase of $41.8 million in the second quarter of 2024 and $58.2 million in the third quarter of 2023.

    As of September 30, 2024, Northrim serviced 4,187 loans in its $1.17 billion home-mortgage-servicing portfolio, a 6% increase compared to the $1.10 billion serviced as of the end of the second quarter of 2024, and a 19% increase from the $982.1 million serviced a year ago.

    The following tables provide highlights of the Home Mortgage Lending segment of Northrim:

      Three Months Ended  
        September       March 31,     December     September  
    (Dollars in thousands, except per share data)   30, 2024   June 30, 2024   2024     31, 2023     30, 2023  
    Mortgage commitments $77,591   $88,006   $56,208   $22,926   $50,128  
    Mortgage loans funded for sale $209,960   $152,339   $84,324   $79,742   $131,863  
    Mortgage loans funded for investment   38,087     29,175     17,403     27,114     21,585  
    Total mortgage loans funded $248,047   $181,514   $101,727   $106,856   $153,448  
    Mortgage loan refinances to total fundings   6 %   6 %   4 %   4 %   5 %
    Mortgage loans serviced for others $1,166,585   $1,101,800   $1,060,007   $1,044,516   $982,098  
    Net realized gains on mortgage loans sold $5,079   $3,188   $1,980   $1,462   $2,491  
    Change in fair value of mortgage loan commitments, net   60     391     386     (296 )   (289 )
    Total production revenue   5,139     3,579     2,366     1,166     2,202  
    Mortgage servicing revenue   2,583     2,164     1,561     2,180     2,396  
    Change in fair value of mortgage servicing rights:                              
    Due to changes in model inputs of assumptions1   (566 )   239     289     (707 )    
    Other2   (402 )   (320 )   (314 )   (301 )   (310 )
    Total mortgage servicing revenue, net   1,615     2,083     1,536     1,172     2,086  
    Other mortgage banking revenue   293     222     129     99     117  
    Total mortgage banking income $7,047   $5,884   $4,031   $2,437   $4,405  
               
    Net interest income $2,941   $2,775   $2,232   $2,276   $2,300  
    Provision (benefit) for credit losses   571     64     (48 )        
    Mortgage banking income   7,047     5,884     4,031     2,437     4,405  
    Other operating expense   7,643     6,697     6,086     5,477     5,951  
    Income (loss) before provision for income taxes   1,774     1,898     225     (764 )   754  
    Provision (benefit) for income taxes   497     532     63     (215 )   182  
    Net income (loss) $1,277   $1,366   $162     ($549 ) $572  
    Weighted average shares outstanding, diluted   5,583,055     5,558,580     5,554,930     5,578,491     5,624,906  
    Diluted earnings per share $0.23   $0.25   $0.03     ($0.10 ) $0.09  

    1Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

      Year-to-date
    (Dollars in thousands, except per share data) September
    30, 2024
    September
    30, 2023
    Mortgage loans funded for sale $446,623   $296,412  
    Mortgage loans funded for investment   84,665     119,144  
    Total mortgage loans funded $531,288   $415,556  
    Mortgage loan refinances to total fundings   6 %   5 %
             
    Net realized gains on mortgage loans sold $10,247   $6,366  
    Change in fair value of mortgage loan commitments, net   837     194  
    Total production revenue   11,084     6,560  
    Mortgage servicing revenue   6,308     5,188  
    Change in fair value of mortgage servicing rights:            
    Due to changes in model inputs of assumptions1   (38 )   (215 )
    Other2   (1,036 )   (1,464 )
    Total mortgage servicing revenue, net   5,234     3,509  
    Other mortgage banking revenue   644     257  
    Total mortgage banking income $16,962   $10,326  
    Net interest income $7,948   $5,022  
    Provision for credit losses   587      
    Mortgage banking income   16,962     10,326  
    Other operating expense   20,426     18,020  
    Income before provision for income taxes   3,897     (2,672 )
    Provision for income taxes   1,092     (728 )
    Net (loss) income Home Mortgage Lending segment $2,805     ($1,944 )
    Weighted average shares outstanding, diluted   5,574,135     5,688,687  
    Diluted (loss) earnings per share $0.51     ($0.34 )


    1
    Principally reflects changes in discount rates and prepayment speed assumptions, which are primarily affected by changes in interest rates.
    2Represents changes due to collection/realization of expected cash flows over time.

    Balance Sheet Review

    Northrim’s total assets were $2.96 billion at September 30, 2024, up 5% from the preceding quarter and up 6% from a year ago. Northrim’s loan-to-deposit ratio was 76% at September 30, 2024, consistent with 76% at June 30, 2024,
    and up from 71% at September 30, 2023.

    At September 30, 2024, our liquid assets, investments, and loans maturing within one year were $1.07 billion and our funds available for borrowing under our existing lines of credit were $641.7 million. Given these sources of liquidity and our expectations for customer demands for cash and for our operating cash needs, we believe our sources of liquidity to be sufficient for the foreseeable future.

    Average interest-earning assets were $2.67 billion in the third quarter of 2024, up 4% from $2.57 billion in the second quarter of 2024 and up 6% from $2.52 billion in the third quarter a year ago. The average yield on interest- earning assets was 5.92% in the third quarter of 2024, up from 5.83% in the preceding quarter and 5.48% in the third quarter a year ago.

    Average investment securities decreased to $619.0 million in the third quarter of 2024, compared to $640.0 million in the second quarter of 2024 and $715.8 million in the third quarter a year ago. The average net tax equivalent yield on the securities portfolio was 2.80% for the third quarter of 2024, down from 2.82% in the preceding quarter

    and up from 2.43% in the year ago quarter. The average estimated duration of the investment portfolio at September 30, 2024, was approximately 2.3 years compared to approximately 2.8 years at September 30, 2023. As of September 30, 2024, $105.1 million of available for sale securities with a weighted average yield of 0.61% are scheduled to mature in the next six months, $73.0 million with a weighted average yield of 2.48% are scheduled to mature in six months to one year, and $177.8 million with a weighted average yield of 1.31% are scheduled to mature in the following year, representing a total of $355.9 million or 13% of earning assets that are scheduled to mature in the next 24 months.

    Total unrealized losses, net of tax, on available for sale securities decreased by $7.6 million in the third quarter of 2024 resulting in total unrealized loss, net of tax, of $7.6 million compared to $15.2 million at June 30, 2024, and $26.5 million a year ago. The average maturity of the available for sale securities with the majority of the unrealized loss is 1.3 years. Total unrealized losses on held to maturity securities were $2.1 million at September 30, 2024, compared to $3.0 million at June 30, 2024, and $4.5 million a year ago.

    Average interest bearing deposits in other banks increased to $28.4 million in the third quarter of 2024 from $17.4 million in the second quarter of 2024 and decreased from $42.3 million in the third quarter of 2023, as deposit balances increased and cash was used to fund the loan growth and provide liquidity.

    Portfolio loans were $2.01 billion at September 30, 2024, up 7% from the preceding quarter and up 17% from a year ago. Portfolio loans, excluding consumer mortgage loans, were $1.76 billion at September 30, 2024, up $105.2 million or 6% from the preceding quarter and up 14% from a year ago. This increase was diversified throughout the loan portfolio including commercial real estate nonowner-occupied and multi-family loans increasing by $33.2 million, construction loans increasing by $31.4 million, and commercial real estate owner-occupied loans increasing $29.0 million from the preceding quarter. Average portfolio loans in the third quarter of 2024 were $1.93 billion, which was up 5% from the preceding quarter and up 14% from a year ago. Yields on average portfolio loans in the third quarter of 2024 increased to 6.91% from 6.87% in the second quarter and from 6.61% in the third quarter of 2023. The increase in the yield on portfolio loans in the third quarter of 2024 compared to the second quarter of 2024 and the third quarter a year ago is primarily due to loan repricing due to the increases in interest rates and new loans booked at higher rates due to changes in the interest rate environment. The yield on new portfolio loans, excluding consumer mortgage loans, was 7.43% in the third quarter of 2024 as compared to 8.26% in the second quarter of 2024 and 7.75% in the third quarter of 2023. The drop in yields on new loan production was largely related to the large volume of new commercial real estate versus commercial loans, as noted above, as well as slightly better credit quality of the loans originated in the third quarter of 2024.

    Alaskans continue to account for substantially all of Northrim’s deposit base. Total deposits were $2.63 billion at September 30, 2024, up 7% from $2.46 billion at June 30, 2024, and up 8% from $2.43 billion a year ago. “The increase in deposits in the third quarter of 2024 were consistent with our customers’ business cycles and a result of continued acquisition of new relationships,” said Ballard. At September 30, 2024, 73% of total deposits were held in business accounts and 27% of deposit balances were held in consumer accounts. Northrim had approximately 34,000 deposit customers with an average balance of $48,000 as of September 30, 2024. Northrim had 22 customers with balances over $10 million as of September 30, 2024, which accounted for $978.4 million, or 38%, of total deposits. Demand deposits increased by 8% from the prior quarter and decreased slightly year-over-year to
    $763.6 million at September 30, 2024. Demand deposits remained consistent at 29% of total deposits at both September 30, 2024 and June 30, 2024 down from 31% of total deposits at September 30, 2023. Average interest- bearing deposits were up 4% to $1.80 billion with an average cost of 2.24% in the third quarter of 2024, compared to $1.73 billion and an average cost of 2.21% in the second quarter of 2024, and up 11% compared to $1.62 billion and an average cost of 1.75% in the third quarter of 2023. Uninsured deposits totaled $1.12 billion or 43% of total deposits as of September 30, 2024 compared to $1.1 billion or 46% of total deposits as of December 31, 2022. Since interest rates began increasing in 2022, Northrim has taken a proactive, targeted approach to increase deposit rates.

    Shareholders’ equity was $260.1 million, or $47.27 book value per share, at September 30, 2024, compared to $247.2 million, or $44.93 book value per share, at June 30, 2024 and $225.3 million, or $40.60 book value per share, a year ago. Tangible book value per share* was $44.36 at September 30, 2024, compared to $42.03 at June

    30, 2024, and $37.72 per share a year ago. The increase in shareholders’ equity in the third quarter of 2024 as compared to the second quarter of 2024 was largely the result of earnings of $8.8 million and an increase in the fair value of the available for sale securities portfolio, which increased $7.6 million, net of tax, which were only partially offset by dividends paid of $3.4 million. The Company did not repurchase any shares of common stock in the third quarter of 2024 and has 110,000 shares remaining under the current share repurchase program as of September 30, 2024. Tangible common equity to tangible assets* was 8.28% as of September 30, 2024, compared to 8.24% as of June 30, 2024 and 7.54% as of September 30, 2023. Northrim continues to maintain capital levels in excess of the requirements to be categorized as “well-capitalized” with Tier 1 Capital to Risk Adjusted Assets of 11.53% at September 30, 2024, compared to 11.68% at June 30, 2024, and 11.67% at September 30, 2023.

    Asset Quality

    Northrim believes it has a consistent lending approach throughout economic cycles, which emphasizes appropriate loan-to-value ratios, adequate debt coverage ratios, and competent management.

    Nonperforming assets (“NPAs”) net of government guarantees were $5.3 million at September 30, 2024, up from $5.1 million at June 30, 2024 and $5.2 million a year ago. Of the NPAs at September 30, 2024, $3.0 million, or 61%, are nonaccrual loans related to three commercial relationships.

    Net adversely classified loans were $6.5 million at September 30, 2024, as compared to $7.1 million at June 30, 2024, and $7.3 million a year ago. Adversely classified loans are loans that Northrim has classified as substandard, doubtful, and loss, net of government guarantees. Net loan recoveries were $96,000 in the third quarter of 2024, compared to net loan recoveries of $26,000 in the second quarter of 2024, and net loan recoveries of $96,000 in the third quarter of 2023. Additionally, Northrim had 11 loan modifications to borrowers experiencing financial difficulty totaling $3.1 million, net of government guarantees in the third quarter of 2024.

    Northrim had $127.4 million, or 6% of portfolio loans, in the Healthcare sector, $110.4 million, or 5% of portfolio loans, in the Tourism sector, $96.6 million, or 5% of portfolio loans, in the Accommodations sector, $83.6 million, or 4% of portfolio loans, in the Fishing sector, $70.6 million, or 3% of portfolio loans, in the Aviation (non-tourism) sector, $67.7 million, or 3% of portfolio loans, in the Retail sector, and $53.1 million, or 3% in the Restaurants and Breweries sector as of September 30, 2024.

    Northrim estimates that $82.0 million, or approximately 4% of portfolio loans, had direct exposure to the oil and gas industry in Alaska, as of September 30, 2024, and $1.6 million of these loans are adversely classified. As of September 30, 2024, Northrim has an additional $29.7 million in unfunded commitments to companies with direct exposure to the oil and gas industry in Alaska, and no unfunded commitments on adversely classified loans. Northrim defines direct exposure to the oil and gas sector as loans to borrowers that provide oilfield services and other companies that have been identified as significantly reliant upon activity in Alaska related to the oil and gas industry, such as lodging, equipment rental, transportation and other logistics services specific to this industry.

    About Northrim BanCorp

    Northrim BanCorp, Inc. is the parent company of Northrim Bank, an Alaska-based community bank with 20 branches in Anchorage, Eagle River, the Matanuska Valley, the Kenai Peninsula, Juneau, Fairbanks, Nome, Kodiak, Ketchikan, and Sitka, serving 90% of Alaska’s population; and an asset-based lending division in Washington; and a wholly-owned mortgage brokerage company, Residential Mortgage Holding Company, LLC. The Bank differentiates itself with its detailed knowledge of Alaska’s economy and its “Customer First Service” philosophy. Pacific Wealth Advisors, LLC is an affiliated company of Northrim BanCorp.

    www.northrim.com

    Forward-Looking Statement

    This release may contain “forward-looking statements” as that term is defined for purposes of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are, in effect, management’s attempt to predict future events, and thus are subject to various risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management’s views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy, management’s plans and objectives for future operations are forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” and “intend” and words or phrases of similar meaning, as they relate to Northrim and its management are intended to help identify forward-looking statements. Although we believe that management’s expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements, are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include: potential further increases in interest rates; the value of securities held in our investment portfolio; the impact of the results of government initiatives on the regulatory landscape, natural resource extraction industries, and capital markets; the impact of declines in the value of commercial and residential real estate markets, high unemployment rates, inflationary pressures and slowdowns in economic growth; changes in banking regulation or actions by bank regulators; inflation, supply-chain constraints, and potential geopolitical instability, including the wars in Ukraine and the Middle East; financial stress on borrowers (consumers and businesses) as a result of higher rates or an uncertain economic environment; the general condition of, and changes in, the Alaska economy; our ability to maintain or expand our market share or net interest margin; the sufficiency of our provision for credit losses and the accuracy of the assumptions or estimates used in preparing our financial statements, including those related to current expected credit losses accounting guidance; our ability to maintain asset quality; our ability to implement our marketing and growth strategies; our ability to identify and address cyber-security risks, including security breaches, “denial of service attacks,” “hacking,” and identity theft; disease outbreaks; and our ability to execute our business plan. Further, actual results may be affected by competition on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and from time to time are disclosed in our other filings with the Securities and Exchange Commission. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations. These forward- looking statements are made only as of the date of this release, and Northrim does not undertake any obligation to release revisions to these forward-looking statements to reflect events or conditions after the date of this release.

    References:

    https://www.bea.gov/

    http://almis.labor.state.ak.us/

    http://www.tax.alaska.gov/programs/oil/prevailing/ans.aspx

    http://www.tax.state.ak.us/

    www.mba.org

    https://www.alaskarealestate.com/MLSMember/RealEstateStatistics.aspx

    https://www.capitaliq.spglobal.com/web/client?auth=inherit&overridecdc=1&#markets/indexFinancials


    Income
    Statement

    (Dollars in thousands, except per share data) Three Months Ended Year-t o-date
    (Unaudited) September 30, June 30, September 30, September 30, September 30,
        2024   2024     2023     2024     2023  
    Interest Income:                  
    Interest and fees on loans $34,863 $32,367   $29,097   $97,680   $79,104  
    Interest on portfolio investments   4,164   4,310     4,727     12,994     14,018  
    Interest on deposits in banks   389   232     584     1,459     2,901  
    Total interest income   39,416   36,909     34,408     112,133     96,023  
    Interest Expense:                            
    Interest expense on deposits   10,123   9,476     7,138     28,779     17,835  
    Interest expense on borrowings   451   380     920     1,012     1,664  
    Total interest expense   10,574   9,856     8,058     29,791     19,499  
    Net interest income   28,842   27,053     26,350     82,342     76,524  
    (Benefit) provision for credit losses   2,063   (120 )   1,190     2,092     2,957  
    Net interest income after provision for credit losses   26,779   27,173     25,160     80,250     73,567  
    Other Operating Income:                             
    Mortgage banking income   7,047   5,884     4,405     16,962     10,326  
    Bankcard fees   1,196   1,105     1,022     3,218     2,916  
    Purchased receivable income   1,033   1,242     1,180     3,620     3,175  
    Service charges on deposit accounts   605   572     550     1,726     1,512  
    Unrealized gain (loss) on marketable equity securities   576   (60 )   12     830     (445 )
    Other income   1,130   834     833     2,652     2,406  
    Total other operating income   11,587   9,577     8,002     29,008     19,890  
    Other Operating Expense:                            
    Salaries and other personnel expense   17,549   16,627     15,657     49,593     46,324  
    Data processing expense   2,618   2,601     2,589     7,878     7,321  
    Occupancy expense   1,911   1,843     1,857     5,716     5,611  
    Professional and outside services   903   726     803     2,384     2,326  
    Marketing expense   860   690     499     2,063     1,996  
    Insurance expense   596   692     640     2,067     1,844  
    OREO expense, net rental income and gains on sale   2   2     (784 )   (387 )   (766 )
    Intangible asset amortization expense         4         11  
    Other operating expense   2,289   2,013     1,631     6,246     5,521  
    Total other operating expense   26,728   25,194     22,896     75,560     70,188  
                                 
    Income before provision for income taxes   11,638   11,556     10,266     33,698     23,269  
    Provision for income taxes   2,813   2,536     1,892     7,654     4,488  
    Net income $8,825 $9,020   $8,374   $26,044   $18,781  
    Basic EPS $1.60 $1.64   $1.50   $4.73   $3.34  
    Diluted EPS $1.57 $1.62   $1.48   $4.67   $3.30  
    Weighted average shares outstanding, basic   5,501,943   5,500,588     5,569,238     5,500,703     5,630,948  
    Weighted average shares outstanding, diluted   5,583,055   5,558,580     5,624,906     5,574,135     5,688,687  
    Balance Sheet
    (Dollars in thousands)
    (Unaudited)
    September 30, June 30, September 30,
        2024     2024     2023  
    Assets:            
    Cash and due from banks $42,805   $33,364   $31,276  
    Interest bearing deposits in other banks   60,071     21,058     79,952  
    Investment securities available for sale, at fair value   545,210     584,964     652,150  
    Investment securities held to maturity   36,750     36,750     36,750  
    Marketable equity securities, at fair value   12,957     12,381     10,615  
    Investment in Federal Home Loan Bank stock   4,318     4,929     6,334  
    Loans held for sale   97,937     85,926     63,151  
                       
    Portfolio loans   2,007,565     1,875,907     1,720,091  
    Allowance for credit losses, loans   (19,528 )   (17,694 )   (16,491 )
    Net portfolio loans   1,988,037     1,858,213     1,703,600  
    Purchased receivables, net   23,564     25,722     34,578  
    Mortgage servicing rights, at fair value   21,570     21,077     19,396  
    Other real estate owned, net           150  
    Premises and equipment, net   39,625     40,393     40,920  
    Lease right of use asset   7,616     8,244     9,673  
    Goodwill and intangible assets   15,967     15,967     15,973  
    Other assets   66,965     72,680     85,671  
    Total assets $2,963,392   $2,821,668   $2,790,189  
    Liabilities:            
    Demand deposits $763,595   $704,471   $764,647  
    Interest-bearing demand   979,238     906,010     875,814  
    Savings deposits   245,043     238,156     265,799  
    Money market deposits   201,821     195,159     230,814  
    Time deposits   435,870     420,010     290,856  
    Total deposits   2,625,567     2,463,806     2,427,930  
    Other borrowings   13,354     43,961     63,781  
    Junior subordinated debentures   10,310     10,310     10,310  
    Lease liability   7,635     8,269     9,673  
    Other liabilities   46,476     48,122     53,236  
    Total liabilities   2,703,342     2,574,468     2,564,930  
    Shareholders’ Equity:                  
    Total shareholders’ equity   260,050     247,200     225,259  
    Total liabilities and shareholders’ equity $2,963,392   $2,821,668   $2,790,189  

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Composition of Portfolio Loans

        September 30,
    2024
    June 30, 2024 March 31, 2024 December 31,
    2023
    September 30,
    2023
      Balance % of
    total
    Balance % of
    total
    Balance % of
    total
    Balance % of
    total
    Balance % of
    total
    Commercial loans $492,414   24 % $495,781   26 % $475,220   26 % $486,057   27 % $492,145   28 %
    Commercial real estate:                    
    Owner occupied properties   412,827   20 %   383,832   20 %   372,507   20 %   368,357   20 %   359,019   21 %
    Nonowner occupied and                    
    multifamily properties   584,302   31 %   551,130   30 %   529,904   30 %   519,115   30 %   509,939   30 %
    Residential real estate:                    
    1-4 family properties                    
    secured by first liens   248,514   12 %   222,026   12 %   218,552   12 %   203,534   11 %   180,719   10 %
    1-4 family properties                    
    secured by junior liens &                    
    revolving secured by first liens   45,262   2 %   41,258   2 %   35,460   2 %   33,783   2 %   27,342   2 %
    1-4 family construction   39,794   2 %   29,510   2 %   27,751   2 %   31,239   2 %   32,374   2 %
    Construction loans   185,362   9 %   154,009   8 %   153,537   8 %   149,788   8 %   120,909   7 %
    Consumer loans   7,836   %   6,679   %   6,444   %   6,180   %   5,930   %
    Subtotal   2,016,311       1,884,225       1,819,375       1,798,053       1,728,377    
    Unearned loan fees, net   (8,746 )     (8,318 )     (8,240 )     (8,556 )     (8,286 )  
    Total portfolio loans $2,007,565     $1,875,907     $1,811,135     $1,789,497     $1,720,091    


    Composition
    of Deposits

      September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023
      Balance % of
    total
    Balance % of
    total
    Balance % of
    total
    Balance % of
    total
    Balance % of
    total
    Demand deposits $763,595 29 % $704,471 29 % $714,244 29 % $749,683 31 % $764,647 31 %
    Interest-bearing demand   979,238 37 %   906,010 36 %   889,581 37 %   927,291 37 %   875,814 36 %
    Savings deposits   245,043 9 %   238,156 10 %   246,902 10 %   255,338 10 %   265,799 11 %
    Money market deposits   201,821 8 %   195,159 8 %   209,785 9 %   221,492 9 %   230,814 10 %
    Time deposits   435,870 17 %   420,010 17 %   373,571 15 %   331,251 13 %   290,856 12 %
    Total deposits $2,625,567   $2,463,806   $2,434,083   $2,485,055   $2,427,930  

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Asset Quality   

        September 30,
    2024 
      June 30,
    2024
      September 30,
    2023
     
    Nonaccrual loans $4,944   $4,830   $6,492  
    Loans 90 days past due and accruing   17   17   28  
    Total nonperforming loans   4,961   4,847   6,520  
    Nonperforming loans guaranteed by government       (1,455)  
    Net nonperforming loans   4,961   4,847   5,065  
    Other real estate owned     150  
    Repossessed assets 297   297    
    Net nonperforming assets $5,258   $5,144   $5,215  
    Nonperforming loans, net of government guarantees / portfolio loans   0.25 0.26 % 0.29 %
    Nonperforming loans, net of government guarantees / portfolio loans, net of government guarantees   0.26 % 0.28 % 0.31 %
    Nonperforming assets, net of government guarantees / total assets   0.18 % 0.18 0.19 %
    Nonperforming assets, net of government guarantees / total assets net of government guarantees   0.19 % 0.19 0.19 %
    Adversely classified loans, net of government guarantees $6,503   $7,068   $7,250  
    Special mention loans, net of government guarantees $9,641   $8,902   $5,457  
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans   0.08 % 0.03 %
    Loans 30-89 days past due and accruing, net of government guarantees / portfolio loans, net of government guarantees   0.09 % 0.04 %
    Allowance for credit losses / portfolio loans   0.97 0.94 % 0.96 %
    Allowance for credit losses / portfolio loans, net of government guarantees   1.04 1.01 1.02 %
    Allowance for credit losses / nonperforming loans, net of government guarantees   394 % 365 326 %
    Gross loan charge-offs for the quarter $15   $—   $91  
    Gross loan recoveries for the quarter   ($111)   ($26)   ($187)  
    Net loan (recoveries) charge-offs for the quarter   ($96)   ($26)   ($96)  
    Net loan charge-offs (recoveries) year-to-date   ($164)   ($68)   ($134)  
    Net loan charge-offs (recoveries) for the quarter / average loans, for the quarter   —  —  (0.01)
    Net loan charge-offs (recoveries) year-to-date / average loans, year-to-date annualized   (0.01) (0.01)  (0.01)
           

    Additional Financial Information
    (Dollars in thousands)
    (Unaudited)

    Average Balances, Yields, and Rates                

      Three Months Ended
      September 30, 2024   June 30, 2024   September 30, 2023  
      Average Balance Average
    Tax
    Equivalent
    Yield/Rate
    Average
    Balance
    Average
    Tax
    Equivalent
    Yield/Rate
    Average
    Balance
    Average
    Tax
    Equivalent
    Yield/Rate
    Assets            
    Interest bearing deposits in other banks $ 28,409   5.28 % $ 17,352   5.27 % $ 42,273   5.39 %
    Portfolio investments   619,012   2.80 %   639,980   2.82 %   715,767   2.43 %
    Loans held for sale   93,689   6.20 %   65,102   6.08 %   62,350   6.34 %
    Portfolio loans   1,933,181   6.91 %   1,845,832   6.87 %   1,695,736   6.61 %
    Total interest-earning assets   2,674,291   5.92 %   2,568,266   5.83 %   2,516,126   5.48 %
    Nonearning assets   196,266       204,509       205,770    
    Total assets $ 2,870,557     $ 2,772,775     $ 2,721,896    

    Liabilities and Shareholders’ Equity

               
    Interest-bearing deposits $ 1,796,107   2.24 % $ 1,725,013   2.21 % $ 1,619,478   1.75 %
    Borrowings   43,555   4.07 %   38,390   3.92 %   76,681   4.73 %
    Total interest-bearing liabilities   1,839,662   2.29 %   1,763,403   2.25 %   1,696,159   1.88 %
    Noninterest-bearing demand deposits   722,000       706,339       747,147    
    Other liabilities   52,387       58,549       52,078    
    Shareholders’ equity   256,508       244,484       226,512    
    Total liabilities and shareholders’ equity $ 2,870,557     $ 2,772,775     $ 2,721,896    
    Net spread   3.63 %   3.58 %   3.60 %
    NIM   4.29 %   4.24 %   4.15 %
    NIMTE*   4.35 %   4.30 %   4.21 %
    Cost of funds   1.64 %   1.60 %   1.31 %
    Average portfolio loans to average            
    interest-earning assets   72.29 %     71.87 %     67.39 %  
    Average portfolio loans to average total deposits   76.77 %     75.92 %     71.65 %  
    Average non-interest deposits to average            
    total deposits   28.67 %     29.05 %     31.57 %  
    Average interest-earning assets to average            
    interest-bearing liabilities   145.37 %     145.64 %     148.34 %  

    Additional Financial Information
    (Dollars in thousands) (Unaudited)

    Average Balances, Yields, and Rates        

      Year-to-date
      September 30, 2024   September 30, 2023
      Average Average
    Tax Equivalent
      Average Average
    Tax Equivalent
    Balance Yield/Rate   Balance Yield/Rate
    Assets          
    Interest bearing deposits in other banks $35,747   5.34 %   $79,362   4.82 %
    Portfolio investments   643,221   2.82 %     723,693   2.41 %
    Loans held for sale   63,917   6.14 %     40,433   6.06 %
    Portfolio loans   1,857,756   6.85 %     1,608,293   6.46 %
    Total interest-earning assets   2,600,641   5.81 %     2,451,781   5.30 %
    Nonearning assets   200,619         192,430    
    Total assets $2,801,260       $2,644,211    

    Liabilities and Shareholders’ Equity

             
    Interest-bearing deposits $1,751,179   2.20 %   $1,577,308   1.51 %
    Borrowings   35,327   3.76 %     52,075   4.23 %
    Total interest-bearing liabilities   1,786,506   2.23 %     1,629,383   1.60 %
    Noninterest-bearing demand deposits   711,197         746,251    
    Other liabilities   57,097         42,596    
    Shareholders’ equity   246,460         225,981    
    Total liabilities and shareholders’ equity $2,801,260       $2,644,211    
    Net spread   3.58 %     3.70 %
    NIM   4.23 %     4.17 %
    NIMTE*   4.29 %     4.24 %
    Cost of funds   1.59 %     1.10 %
    Average portfolio loans to average interest-earning assets   71.43 %       65.60 %  
    Average portfolio loans to average total deposits   75.45 %       69.22 %  
    Average non-interest deposits to average total deposits   28.88 %       32.12 %  
    Average interest-earning assets to average interest-bearing liabilities   145.57 %       150.47 %  

    Additional Financial Information
    (Dollars in thousands, except per share data)
    (Unaudited)

    Capital Data (At quarter end)

         
                September 30, 2024       June 30, 2024   September 30, 2023
    Book value per share           $47.27   $44.93   $40.60  
    Tangible book value per share*           $44.36   $42.03   $37.72  
    Total shareholders’ equity/total assets           8.78 8.76   8.07  %
    Tangible Common Equity/Tangible Assets*           8.28 8.24   7.54  %
    Tier 1 Capital / Risk Adjusted Assets           11.53 11.68   11.67  %
    Total Capital / Risk Adjusted Assets           12.50 12.58   12.58  %
    Tier 1 Capital / Average Assets           9.08 9.17   9.02  %
    Shares outstanding           5,501,943   5,501,562     5,548,436  
    Total unrealized loss on AFS debt securities, net of income taxes           ($7,617)   ($15,197)     ($26,526 )
    Total unrealized gain on derivatives and hedging activities, net of
    income taxes
              $863   $1,212   $1,485  
         
    Profitability Ratios    
        September 30, 
    2024
      June 30,
    2024
      March 31, 
    2024
      December 31, 2023   September 30,
    2023

    For the quarter:

       
    NIM         4.29%   4.24%   4.16%   4.06%     4.15%  
    NIMTE*         4.35%   4.30%   4.22%   4.12%     4.21%  
    Efficiency ratio         66.11%   68.78%   68.93%   72.21%     66.64%  
    Return on average assets         1.22%   1.31%   1.19%   0.93%     1.22%  
    Return on average equity         13.69%   14.84%   13.84%   11.36%     14.67%  
      September 30,   September 30,  
    2024   2023
    Year-to-date:      
    NIM 4.23 % 4.17 %
    NIMTE* 4.29 % 4.24 %
    Efficiency ratio 67.86 % 72.79 %
    Return on average assets 1.24 % 0.95 %
    Return on average equity 14.12 % 11.11 %


    *Non-GAAP
    Financial Measures
    (Dollars and shares in thousands, except per share data) (Unaudited)

    Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although we believe these non-GAAP financial measures are frequently used by stakeholders in the evaluation of the Company, they have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of results as reported under GAAP.

    Net interest margin on a tax equivalent basis

    Net interest margin on a tax equivalent basis (“NIMTE”) is a non-GAAP performance measurement in which interest income on non-taxable investments and loans is presented on a tax equivalent basis using a combined federal and state statutory rate of 28.43% in both 2024 and 2023. The most comparable GAAP measure is net interest margin and the following table sets forth the reconciliation of NIMTE to net interest margin for the periods indicated.

      Three Months Ended
        September 30,       March 31,     December     September 30,  
        2024   June 30, 2024   2024     31, 2023     2023  
    Net interest income $28,842   $27,053   $26,447   $26,732   $26,350  
    Divided by average interest-bearing assets   2,674,291     2,568,266     2,558,558     2,612,297     2,516,126  
    Net interest margin (“NIM”)2   4.29 %   4.24 %   4.16 %   4.06 %   4.15 %
    Net interest income $28,842   $27,053   $26,447   $26,732   $26,350  
    Plus: reduction in tax expense related to
    tax-exempt interest income
      385     378     379     374     373  
        $29,227     $27,431     $26,826     $27,106     $26,723  
    Divided by average interest-bearing assets NIMTE2   2,674,291     2,568,266     2,558,558     2,612,297     2,516,126  
        4.35 %   4.30 %   4.22 %   4.12 %   4.21 %
      Year-to-date
      September 30, September 30,
      2024     2023  
    Net interest income $82,342   $76,524  
    Divided by average interest-bearing assets   2,600,641     2,451,781  
    Net interest margin (“NIM”)3   4.23 %   4.17 %
    Net interest income
    Plus: reduction in tax expense related to
    $82,342   $76,524  
    tax-exempt interest income   1,142     1,202  
      $83,484   $77,726  
    Divided by average interest-bearing assets   2,600,641     2,451,781  
    NIMTE3   4.29 %   4.24 %


    2
    Calculated using actual days in the quarter divided by 366 for the quarters ended in 2024 and 365 for the quarters ended in 2023, respectively.

    3Calculated using actual days in the year divided by 366 for year-to-date period in 2024 and 365 for year-to-date period in 2023, respectively.


    *Non-GAAP Financial Measures

    (Dollars and shares in thousands, except per share data)
    (Unaudited)

    Tangible Book Value Per Share

    Tangible book value per share is a non-GAAP measure defined as shareholders’ equity, less intangible assets, divided by shares outstanding. The most comparable GAAP measure is book value per share and the following table sets forth the reconciliation of tangible book value per share and book value per share for the periods indicated.

        September 30, 
    2024
      June 30, 2024   March 31, 
    2024
      December
    31, 2023
      September 30,
    2023
    Total shareholders’ equity $260,050 $247,200 $239,327 $234,718 $225,259
    Divided by shares outstanding   5,502   5,502   5,500   5,513   5,548
    Book value per share $47.27 $44.93 $43.52 $42.57 $40.60
        September 30, 
    2024
      June 30, 2024   March 31, 
    2024
      December
    31, 2023
      September 30,
    2023
    Total shareholders’ equity $260,050 $247,200 $239,327 $234,718 $225,259
    Less: goodwill and intangible assets   15,967   15,967   15,967   15,967   15,973
      $244,083 $231,233 $223,360 $218,751 $209,286
    Divided by shares outstanding   5,502   5,502   5,500   5,513   5,548
    Tangible book value per share $44.36 $42.03 $40.61 $39.68 $37.72


    Tangible
    Common Equity to Tangible Assets

    Tangible common equity to tangible assets is a non-GAAP ratio that represents total equity less goodwill and intangible assets divided by total assets less goodwill and intangible assets. The most comparable GAAP measure of shareholders’ equity to total assets is calculated by dividing total shareholders’ equity by total assets and the following table sets forth the reconciliation of tangible common equity to tangible assets and shareholders’ equity to total assets.

    Northrim BanCorp, Inc. September 30,     March 31,   December September 30,
      2024 June 30, 2024   2024     31, 2023     2023  
    Total shareholders’ equity $260,050 $247,200 $239,327   $234,718   $225,259  
    Total assets 2,963,392 2,821,668   2,759,560     2,807,497     2,790,189  
    Total shareholders’ equity to total assets 8.78 % 8.76 %   8.67 %   8.36 %   8.07 %
    Northrim BanCorp, Inc. September 30,   March 31, December September 30,
      2024 June 30, 2024   2024     31, 2023     2023  
    Total shareholders’ equity $260,050 $247,200 $239,327   $234,718   $225,259  
    Less: goodwill and other intangible assets, net 15,967 15,967   15,967     15,967     15,973  
    Tangible common shareholders’ equity $244,083 $231,233 $223,360   $218,751   $209,286  
    Total assets $2,963,392 $2,821,668 $2,759,560   $2,807,497   $2,790,189  
    Less: goodwill and other intangible assets, net 15,967 15,967   15,967     15,967     15,973  
    Tangible assets $2,947,425 $2,805,701 $2,743,593   $2,791,530   $2,774,216  
    Tangible common equity ratio 8.28 % 8.24 %   8.14 %   7.84 %   7.54 %

    Note Transmitted on GlobeNewswire on October 23, 2024, at 2:30 pm Alaska Standard Time.

       
    Contact: Mike Huston, President, CEO, and COO
      (907) 261-8750
      Jed Ballard, Chief Financial Officer
      (907) 261-3539

    The MIL Network

  • MIL-OSI Security: Wilsonville Woman Sentenced to Federal Prison for Laundering More than $4.6 Million in Drug Proceeds

    Source: Office of United States Attorneys

    PORTLAND, Ore.—A Wilsonville, Oregon woman was sentenced to federal prison today for laundering millions of dollars in drug proceeds as the chief money launderer for a drug trafficking organization operating in the Pacific Northwest and California.

    Jacqueline Paola Rodriguez Barrientos, 44, was sentenced to 57 months in federal prison and three years’ supervised release.

    “We thank the coordinated efforts of our federal, state, and local law enforcement partners actively combatting these drug trafficking organizations and the damage they inflict on our communities,” said Natalie Wight, U.S. Attorney for the District of Oregon.

    “While people like Ms. Rodriguez Barrientos conceal the profits of drug enterprises, the losses fall on far too many Americans and their families,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “We will continue doing our part to expose the finances of criminal organizations.”

    According to court documents, beginning in fall 2021, special agents from the U.S. Drug Enforcement Administration (DEA) in Portland began investigating a drug trafficking organization suspected of transporting counterfeit oxycodone pills containing fentanyl and heroin from California into Oregon and Washington State for distribution.

    A parallel financial investigation led by IRS Criminal Investigation (IRS:CI) revealed that Barrientos laundered money generated by the drug trafficking organization through the Mazatlán Beauty Salon in Tualatin, Oregon and by buying real estate that she converted into income-generating rentals. The real estate purchases were made with cashier’s checks funded by large cash deposits. Currency Transaction Reports generated by several banks showed that Barrientos made frequent cash deposits ranging from $10,000 to more than $373,000 into accounts held in her name or the name of her salon. These deposits totaled more than $3.5 million during a 9-month period in 2021.

    Since February 2021, members of the drug trafficking organization also purchased a total of nine residential properties in Oregon, Washington and Nevada with an estimated total value of more than $4.6 million. All nine properties were purchased outright with no mortgages. Barrientos used laundered funds to purchase eight of these properties. She then used third-party property management companies to rent these properties and received approximately $10,000 per month in rental income.

    On February 17, 2022, DEA agents arrested Barrientos and an associate at their Las Vegas residence. Agents found and seized two luxury vehicles, several loose receipts documenting high-end retail purchases, credit card statements documenting more than $16,000 spent on tickets to attend a professional boxing match, and other evidence memorializing the couple’s high-end lifestyle.

    On February 9, 2022, a federal grand jury in Portland returned an indictment charging Barrientos with conspiracy to launder drug proceeds. She pleaded guilty on July 31, 2024.

    Barrientos has agreed to forfeiture of the properties purchased with criminal proceeds as part of the resolution of her case. Some of the properties have been sold by the government; others are pending forfeiture and sale. The proceeds of forfeited assets are deposited in the Justice Department’s Assets Forfeiture Fund (AFF) and used to restore funds to crime victims and for a variety of other law enforcement purposes. To learn more about the AFF, please visit: https://www.justice.gov/afp/assets-forfeiture-fund-aff.

    This case was investigated by DEA with assistance from the FBI, Homeland Security Investigations (HSI), IRS:CI, Tigard Police Department, and Oregon State Police. It is being prosecuted by Peter D. Sax, Assistant U.S. Attorney for the District of Oregon. Forfeiture proceedings are being handled by AUSA Katie De Villiers, also of the District of Oregon.

    This case is part of an Organized Crime Drug Enforcement Task Forces (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.

    MIL Security OSI

  • MIL-OSI Security: U.S. Attorney’s Office Recognizes Exceptional Law Enforcement Work at the 2024 Law Enforcement Awards Ceremony

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

    Burlington, Vermont – On October 23, 2024, the U.S. Attorney’s Office for the District of Vermont honored a number of individuals from a variety of law enforcement agencies at the U.S. Attorney’s Office’s Law Enforcement Awards Ceremony. Individual investigators and officers from federal, state, and local agencies were nominated by U.S. Attorney’s Office staff in a variety of categories for their outstanding work supporting the mission of this office and promoting public safety. The specific categories and individuals recognized today are as follows:

    Investigative Achievement Award: This award criteria are established for those individuals, both sworn and non-sworn who have significantly contributed to the mission of the U.S. Attorney’s Office.  

    • Special Agent Samuel Brown, Bureau of Alcohol, Tobacco, Firearms and Explosives – nominated for United States v. Carl Martin.
    • Special Agent Brian Wood, Bureau of Alcohol, Tobacco, Firearms and Explosives – nominated for United States v. Carl Martin.
    • Special Agent Nicholas Call, Food and Drug Administration-Office of Criminal Investigations – nominated for United States v. Paul Bateman, Samir Doshi, and Rebecca Buckley.
    • Resident Agent in Charge Derek Roy, Food and Drug Administration-Office of Criminal Investigations – nominated for United States v. Paul Bateman, Samir Doshi, and Rebecca Buckley.
    • Special Agent Jason Tilley, Food and Drug Administration-Office of Criminal Investigations – nominated for United States v. Paul Bateman, Samir Doshi, and Rebecca Buckley.
    • Financial Investigator Joel Garland, Food and Drug Administration-Office of Criminal Investigations – nominated for United States v. Paul Bateman, Samir Doshi, and Rebecca Buckley.
    • Special Agent Erin Nelligan, Homeland Security Investigations – nominated for United States v. Michael Burton.
    • Special Agent Colin Simons, Federal Bureau of Investigation – nominated for United States v. Eric Colson, Gage Colson, and Antonio Vergara.
    • Detective Sergeant Karl Gardner, Vermont State Police – nominated for United States v. Eric Colson, Gage Colson, and Antonio Vergara.
    • Detective Trooper Steven Fauteux, Vermont State Police – nominated for United States v. Eric Colson, Gage Colson, and Antonio Vergara.
    • Detective Sergeant Aaron Lefebvre, St. Albans Police Department, former Detective with the Vermont Drug Task Force and the Newport Police Department – nominated for United States v. Eric Colson, Gage Colson, and Antonio Vergara.

    Outstanding Collaborative Investigation Award: This category is limited to those who have demonstrated outstanding efforts to overcome significant challenges in collaboration with multiple agencies in order to meet the mission of the U.S. Attorney’s Office.

    • Special Agent Brian Wood, Bureau of Alcohol, Tobacco, Firearms and Explosives
    • Special Agent Samuel Brown, Bureau of Alcohol, Tobacco, Firearms and Explosives
    • Detective Sergeant Philip Tremblay, Burlington Police Department
    • Drug Enforcement Administration Task Force Officer Durwin Ellerman, Burlington Police Department
    • Sergeant Chase Vivori, Burlington Police Department
    • Special Agent Erin Nelligan, Homeland Security Investigations
      • All nominated for outstanding collaborative investigation in United States v. Ronald Harris, et al.
    • Special Agent Paul Altenburg, Homeland Security Investigations
    • Special Agent Anders Ostrum, Internal Revenue Service-Criminal Investigation
    • Criminal Analyst Nancy Woods, Homeland Security Investigations
    • Resident in Charge Alex Zuchman, Homeland Security Investigations
    • Special Agent Michael DeFiore, U.S. Army Criminal Investigation Division, former Detective Corporal with the Vermont Drug Task Force and the South Burlington Police Department
    • Detective Sergeant Dustin Robinson, Vermont State Police
    • Detective Sergeant Philip Tremblay, Burlington Police Department
    • Special Agent Aaron Dince, Homeland Security Investigations
    • Special Agent Colin Simons, Federal Bureau of Investigation
    • Postal Inspector Jonathan Dunham, U.S. Postal Inspection Service
    • Special Agent Brandon Hope, Drug Enforcement Administration
      • All nominated as their agency representatives for outstanding collaborative investigation for United States v. Dajuan Williams, et al.

    Award recipients gathered today at the U.S. Attorney’s Office, joined by colleagues and family. Each recipient received an engraved award commemorating their outstanding efforts. U.S. Attorney Kerest stated: “This is one of the best days of the year when we have the chance to recognize law enforcement officers like today’s awardees in the presence of their families. Today’s awardees make the work of the U.S. Attorney’s Office possible, and they do that work with the necessary support of their family and loved ones. We applaud their tireless work and the daily sacrifices they all make.”

    MIL Security OSI

  • MIL-OSI USA: Justice Department Announces Four Cases Brought by Election Threats Task Force

    Source: US State of North Dakota

    The Justice Department’s Election Threats Task Force (ETTF) announced developments this week in four cases involving interstate transmissions of threats to election personnel and other victims.

    Teak Brockbank, 45, of Cortez, Colorado, pleaded guilty today to threatening a Colorado election official and making other threats to an Arizona election official, a Colorado state judge, and federal law enforcement agents between September 2021 and July 2024.

    Brian Jerry Ogstad, 60, of Cullman, Alabama, was sentenced on Monday to 30 months in prison for sending messages threatening violence to election workers with Maricopa County Elections in Phoenix from Aug. 2-4, 2022, during and immediately following the Arizona primary elections.

    Richard Glenn Kantwill, 61, of Tampa, Florida, was charged on Monday for allegedly sending a threat on Feb. 9 to an election official in addition to already pending charges for threats made to three other victims based on their political commentary in 2019 and 2020.

    John Pollard, 62, of Philadelphia, was charged on Monday for allegedly threatening on Sept. 6 to kill a representative of a Pennsylvania state political party who was recruiting official poll watchers.

    “As we approach Election Day, the Justice Department’s warning remains clear: anyone who illegally threatens an election worker, official, or volunteer will face the consequences,” said Attorney General Merrick B. Garland. “Over the past three and a half years, the Justice Department has been aggressively investigating and prosecuting those who threaten the public servants who administer our elections, and we will continue to do so in the weeks ahead. For our democracy to function, Americans who serve the public must be able to do their jobs without fearing for their lives.”

    “Threats to election workers are threats to our democratic process,” said Deputy Attorney General Lisa Monaco. “No one should face violence or threats of violence simply for doing their job. The actions announced today make clear that we will not tolerate those who use or threaten violence in an effort to undermine our democratic institutions. To carry out their essential work, election officials must be free from improper influence, physical threats, and others forms of intimidation.”

    “Our elections are made by possible by the hard work and patriotism of election workers in communities across the country who are also our neighbors, relatives and friends, and they deserve to do this important work without being subjected to threats,” said FBI Director Christopher Wray. “The fact that election workers need to be worried about their security is incomprehensible and unacceptable. While these four cases are examples of the kinds of threats election workers are unfortunately facing, these cases also represent the FBI’s dedication in holding accountable those who undermine our democracy with this conduct. The FBI and our partners on the ETTF will work tirelessly to charge and arrest those callous enough to make these threats and make sure they are held accountable. Free, fair, and safe elections are critical to our country and our democratic ideals.”

    “These defendants made serious threats of violence against members of the election community. Threats like these strike at the very heart of our democracy,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The cases announced today underscore the Criminal Division’s commitment to defending our democracy, safeguarding our elections, and protecting all election workers. Through the ETTF, the Department will vigorously investigate and prosecute all criminal threats against members of the election community.”

    The four cases were all brought by the ETTF. Created by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the Department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting U.S. Attorneys’ Offices and FBI Field Offices nationwide as they join the task force in its critical work.

    Under the leadership of the Attorney General and the Deputy Attorney General, the task force is led by the Criminal Division’s Public Integrity Section (PIN) and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

    United States v. Brockbank (District of Colorado)

    According to court documents, Brockbank admitted to using three social media accounts to post messages threatening Colorado and Arizona election officials between September 2021 and July 2024.

    On Sept. 22, 2021, Brockbank posted the following message on social media:

    “[Election Official-1] . . . needs to- No has to Hang she has to Hang by the neck till she is Dead Dead Dead. There will be accountability for these peoples actions in Communist Colorado and it won’t be judges and it won’t be weakmided cops that bring it!!! It will be Me it will be You it Will be every day people that understand that there life does not matter anymore with the future our country has laid out before it.”

    As part of his plea, Brockbank also admitted to posting a message on Aug. 4, 2022, referring to election officials in Arizona and Colorado, saying: “Once those people start getting put to death then the rest will melt like snowflakes and turn on each other. . . . This is the only way. So those of us that have the stomach for what has to be done should prepare our minds for what we all [a]re going to do!!!!!! It is time.”

    In addition, Brockbank admitted to posting a message threatening a Colorado state judge on Oct. 2, 2021, saying: “I could pick up my rifle and I could go put a bullet in this Mans head and send him to explain himself to our Creator right now. I would be Justified!!! Not only justified but obligated by those in my family who fought and died for the freedom in this country. . . . What can I do other than kill this man my self?”

    Brockbank further admitted to threatening federal law enforcement on July 13, posting: “I believe every single FBI agent deserves to go explain themselves to our creator right away!!!! I am more than willing to send any/All of you there.”

    Finally, Brockbank admitted to illegally possessing multiple firearms and ammunition.

    “The security and sanctity of the American election system is core to the foundation of our Democracy,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will prosecute people who threaten elections, election officials, or election workers to the fullest extent of the law.”

    Brockbank pleaded guilty today to interstate transmission of a threat. He is scheduled to be sentenced on Feb. 3, 2025, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Denver Field Office is investigating the case.

    Acting Deputy Director Jonathan E. Jacobson of PIN’s Election Crimes Branch and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado are prosecuting the case.

    United States v. Ogstad (District of Arizona)

    According to court documents, on or about Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through on or about Aug. 4, 2022, Ogstad sent multiple threatening direct messages to a social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad stated: (1) “You did it! Now you are f*****.. Dead. You will all be executed for your crimes”; (2) F*** you! You are caught! They have it all. You f****** are dead”; (3) “You are lying, cheating m****** f******* . . . you better not come in my church, my business or send your kids to my school. You are f****** stupid if you think your lives are safe”; and (4) “You f******  are so dead.” On or about Aug. 4, 2022, Ogstad also stated, “[Y]ou people are so ducking stupid. Everyone knows you are lots, cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang f******!” In the course of his messages to the recipient, Ogstad transmitted an image of the character “Woody,” from the Toy Story film franchise, lying face down with an unidentified projectile in its back.

    “In this election season we honor and respect those public servants who enable Americans to exercise their constitutional right to vote,” said U.S. Attorney Gary Restaino for the District of Arizona. “And we seek to protect all election workers from intimidation and harassment. Threats of violence, whether conveyed by words or deeds or pictures, will be met in this District with robust prosecution.”

    Ogstad was sentenced on Monday to 30 months in prison, followed by three years of supervised release and a $1,000 fine, after pleading guilty on July 25 to one count of interstate transmission of a threat.

    The FBI Phoenix Field Office investigated the case, with substantial assistance from the FBI Birmingham Field Office.

    Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona prosecuted the case.

    United States v. Kantwill (Middle District of Florida)

    According to court documents, from September 2019 to July 2020, Kantwill, a dentist, sent over 100 threats to various public figures via Facebook and Instagram messages, email, and text. As charged in the superseding information filed on Monday, those threats included a threat sent via email to an author, a threat sent via text to a religious leader, and a threat sent via Instagram to a television personality. From April 2022 to April 2024, Kantwill also sent at least seven additional threats to four public figures via Facebook, including a threat to an election official in another state on Feb. 9, when Kantwill wrote: “You are a degenerate c***. and you are now the target of our own investigation. Take note because liberal t***s like you get raped in alleys, by really big black guys that serve our cause. So, you t*** are going to get raped by at least 5 n*****s, and do nothing. You are the number 1 target, you degenerate t***.”

    “If you threaten someone with violence, we will take you at your word,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Law enforcement officers and members of my office will work together to hold accountable and federally prosecute individuals who threaten to injure or kill others.”

    Kantwill is charged with four counts of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Trial Attorney Aaron L. Jennen of PIN and Assistant U.S. Attorney Abigail K. King for the Middle District of Florida are prosecuting the case, with assistance from Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado.

    United States v. Pollard (Western District of Pennsylvania)

    According to the indictment, on Sept. 6, Pollard sent threatening text messages to Victim 1, a resident of the Western District of Pennsylvania. Victim 1 had previously posted online, in Victim 1’s capacity as an employee of a state political party, that Victim 1 was recruiting volunteers to “help[] observe at the polls on Election Day” and included Victim 1’s phone number. Pollard allegedly texted Victim 1 that he was “interested in being a poll watcher” and included Victim 1’s first name. Pollard then allegedly texted three threats to Victim 1: (1) “I will KILL YOU IF YOU DON’T ANSWER ME!”; (2) “Your days are numbered, B****!”; and (3) “GONNA F***ING FIND YOU AND SKIN YOU ALIVE AND USE YOUR SKIN FOR F***ING TOILET PAPER, YOU F***ING KKK**T!”

    “Threats of violence have no place in our society,” said U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania. “This is no less true when those threats of violence are directed at individuals associated with our electoral process — in this case, someone seeking to organize poll watchers. This conduct will not be tolerated in our district, and we will continue to work with our partners at the FBI to prosecute these offenses with the full weight of the law.”

    Pollard was arrested on Monday and appeared in federal court in Philadelphia. He is charged with one count of interstate transmission of a threat. If convicted, he faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI Pittsburgh Field Office is investigating the case.

    Trial Attorney Jacob R. Steiner of PIN and Assistant U.S. Attorney Nicole A. Stockey for the Western District of Pennsylvania are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Pennsylvania.

    *****

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

    To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at tips.fbi.gov/home. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

    MIL OSI USA News

  • MIL-OSI USA: Former Federal Employee Pleads Guilty to Mishandling Classified Materials

    Source: US State of North Dakota

    Margaret Anne Ashby, 26, of Henderson, Nevada, pleaded guilty today for mishandling sensitive documents as a former employee of a Department of Defense component agency.

    As described in the plea agreement, starting in March 2020, Ashby was a civilian employee of a Department of Defense component agency located in the Southern District of Georgia, and during this time held a top secret security clearance as required for her employment.

    From February 2022 to May 2022, Ashby, without authority, knowingly removed documents and materials containing classified information “concerning the national defense or foreign relations of the United States . . . with the intent to retain them at unauthorized locations, including her residence in the Southern District of Georgia and in digital files saved via a personal computing device located in the Southern District of Georgia.”

    A sentencing date has not yet been set. Ashby faces a maximum penalty of five years in prison and three years of supervised release for mishandling sensitive documents, along with substantial financial penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jill E. Steinberg for the Southern District of Georgia, and Robert Wells of the FBI National Security Branch announced the case.

    The FBI investigated the case.

    Assistant U.S. Attorneys L. Alexander Hamner and Darron J. Hubbard for the Southern District of Georgia and Trial Attorney David J. Ryan of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

    MIL OSI USA News

  • MIL-OSI USA: California Man Charged with Weapon of Mass Destruction Offense in Connection with Bomb Attack in Lobby of County Courthouse

    Source: US State of North Dakota

    A three-count federal grand jury indictment was returned today charging Nathaniel James McGuire, 20, of Santa Maria, California, with committing a bomb attack at a courthouse in Santa Maria in which several people were injured. McGuire’s arraignment is scheduled for Oct. 25 in the Central District of California.

    According to the indictment and criminal complaint, on Sept. 25, McGuire entered a courthouse of Santa Barbara County Superior Court and threw a bag into the lobby. The bag exploded and McGuire left the courthouse on foot. The explosion injured at least five people who were near the bomb when it exploded.

    Shortly thereafter, McGuire was apprehended and detained by law enforcement officials as he was trying to access a red Ford Mustang car parked outside the building. McGuire allegedly yelled that the government had taken his guns and that everyone needed to fight, rise up, and rebel.

    Inside the car, a deputy saw ammunition, a flare gun, and a box of fireworks. A search of the car revealed a shotgun, a rifle, more ammunition, a suspected bomb, and 10 Molotov cocktails. Law enforcement later rendered the bomb safe. McGuire told law enforcement he intended to re-enter the courthouse with the firearms in order to kill a judge.

    A search of McGuire’s residence revealed an empty can with nails glued to the outside, a duffel bag containing matches, black powder, used and unused fireworks, and papers that appeared to be recipes for explosive material.

    McGuire was charged with one count of using a weapon of mass destruction, one count of maliciously damaging a building by means of explosive, and one count of possessing unregistered destructive devices. McGuire has been in custody since his arrest in September, shortly after the attack.

    If convicted of all charges, McGuire faces a mandatory minimum penalty of seven years in prison and a statutory maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Martin Estrada for the Central District of California, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch announced the case.

    The FBI is investigating the case.

    Assistant U.S. Attorneys Mark Takla and Kathrynne N. Seiden for the Central District of California are prosecuting this case with substantial assistance from Trial Attorney Patrick Cashman of the National Security Division’s Counterterrorism Section.

    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: “Operation Bond Watch” Seeks to Prevent Those Charged with Violent Crimes from Illegally Possessing Firearms

    Source: Office of United States Attorneys

    NASHVILLE – Thomas J. Jaworski, Acting United States Attorney for the Middle District of Tennessee, today announced a new initiative aimed at prosecuting unlawful firearm possession by individuals previously charged with murder and attempted murder. “Operation Bond Watch” seeks to deter defendants who are out on bond for serious violent crimes from illegally possessing firearms and potentially putting the community at risk. The program seeks to deter those released on bond for First Degree Murder, Felony Murder, Second Degree Murder, Attempted First Degree Murder, and Attempted Second Degree murder from unlawfully possessing firearms.

    Under this new program, if an individual on bond for a serious violent crime is found to have unlawfully possessed a firearm, federal prosecutors will, where the evidence supports it, swiftly seek appropriate federal charges against those individuals. “The goal is to keep the community safe from gun violence,” said Acting U.S. Attorney Thomas J. Jaworski, “and to prevent those on bond while charged with murder and attempted murder from illegally carrying guns while awaiting their day in court.”

    “Breaking cycles of violent gun crime by repeat offenders is essential to the safety of the Nashville community,” said Metro Police Chief John Drake. “Operation Bond Watch is an important tool in a system of checks and balances between a defendant’s arrest and ultimate adjudication of the case.  I am grateful to Acting U.S. Attorney Jaworski and our strong partners in the ATF and FBI for their commitment in helping us hold violent criminals accountable.”

    “Protecting the public is at the core of our ATF mission,” said Special Agent in Charge Marcus Watson of the ATF Nashville Field Division. “We, along with our law enforcement partners, stand ready to work tirelessly to prevent those who choose to illegally possess firearms from wreaking havoc on law abiding citizens.”

    “The FBI is committed to working with our law enforcement and prosecutorial partners on Operation Bond Watch,” said Special Agent in Charge Joe Carrico of the FBI Nashville Field Office. “Here in Tennessee, the FBI will continue to use all the tools at our disposal to deter defendants who are out on bond for serious violent crimes from illegally possessing firearms. Everyone deserves to live in a community free of gun violence.”

    In April 2024, a Nashville man out on bond for a 2021 murder was arrested on suspicion of committing another murder; both cases are still pending. “We believe in the presumption of innocence and a right to a fair trial,” Jaworski said, “but we also believe that the community should be protected from individuals unlawfully possessing firearms when there is the potential to cause destructive violence.”

    Prosecutors in the U.S. Attorney’s Office in Nashville have previously charged individuals on bond for murder with unlawful weapons possession offenses. For example, Mark Ellis, 30, of Clarksville was on bond for First Degree Murder when he was arrested with a 9mm pistol and a pound of fentanyl during a drug deal. In March of 2024, Ellis was sentenced to 25 years in federal prison for his crimes.

    This new effort will bring more federal resources to bear against individuals who unlawfully possess firearms while on bond for serious violent crimes. “Our commitment to the safety of our community has been steadfast,” Jaworski said, “this new initiative will hopefully deter those awaiting a trial on serious charges from illegally carrying a gun, which is better for everyone.”

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

    # # # # #

    MIL Security OSI

  • MIL-OSI Security: Washington State Defense Attorney Facing Federal Charges for Smuggling Drugs into Correctional Facility

    Source: Office of United States Attorneys

    SEATTLE—A Washington State defense attorney was arraigned in federal court Monday after he was indicted for joining a criminal conspiracy to smuggle drugs into the King County Correctional Facility (KCCF), a jail located in Seattle, during client visits.

    John M. Sheeran, 60, of Pierce County, Washington has been charged with conspiring to distribute controlled substances, possessing and distributing methamphetamine, distributing buprenorphine, and illegally using a communication facility.

    According to the indictment, Sheeran used his status as an attorney to smuggle controlled substances, including methamphetamine, ketamine, buprenorphine, and THC, to two of his then- clients and inmates at KCCF during legal visits. During the conspiracy, Sheeran distributed, or possessed with an intent to distribute, sheets of paper that had been soaked in drugs, chewing tobacco cans that swapped out the tobacco with drugs, and trial clothes that had drugs concealed in the soles of the shoes. After Sheeran successfully smuggled the drugs into KCCF, Sheeran’s co-conspirators sold the drugs to other inmates for significant sums.

    On October 16, 2024, a federal grand jury in Seattle returned an indictment charging Sheeran and four co-conspirators. Sheeran was arrested Monday without incident in Washington Place, Washington.

    Sheeran made his initial appearance in federal court Monday before a U.S. Magistrate Judge in Seattle. He was arraigned, pleaded not guilty, and ordered released pending a jury trial scheduled to begin on December 20, 2024.

    If convicted, Sheeran faces a maximum sentence of 20 years in federal prison, a minimum of three years’ supervised release, and a fine up to $1 million.

    The case was investigated by the FBI and King County Sheriff’s Office. It is being prosecuted by Robert S. Trisotto, Assistant U.S. Attorney for the District of Oregon, acting as Special Attorney for the Western District of Washington.

    An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

    MIL Security OSI

  • MIL-OSI Security: U.S. Attorney Announces Office’s District Election Officers for November 2024 General Election

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – United States Attorney Eric G. Olshan announced that Assistant United States Attorneys (AUSAs) Jeffrey R. Bengel and Nicole A. Stockey will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSAs Bengel and Stockey have been appointed to serve as the District Election Officers (DEOs) for the Western District of Pennsylvania, and, in that capacity, are responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

    United States Attorney Olshan said: “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

    The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

    United States Attorney Olshan stated: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSAs Bengel and Stockey will be on duty in this District while the polls are open and can be reached by the public by calling (412) 644-3500.”

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (412) 432-4000.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, D.C., by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

    United States Attorney Olshan said: “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

    In the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

    MIL Security OSI