NewzIntel.com

Category: Finance

  • MIL-OSI USA: Arizona Couple Pleads Guilty to $1.2B Health Care Fraud

    Source: US State of California

    An Arizona couple pleaded guilty for causing over $1.2 billion of false and fraudulent claims to be submitted to Medicare and other health insurance programs for expensive, medically unnecessary wound grafts that were applied to elderly and terminally ill patients.

    According to court documents, Alexandra Gehrke, 39, and her husband, Jeffrey King, 46, both of Phoenix, conspired with others to orchestrate the massive scheme. Gehrke ran two companies, Apex Medical LLC and Viking Medical Consultants LLC, that contracted with medically untrained “sales representatives” to locate elderly patients, including hospice patients, who had wounds at any stage and order amniotic wound grafts from a specific graft distributor. Gehrke instructed and financially incentivized the sales representatives to order grafts only in sizes 4×6 centimeters or larger, even if the wound was much smaller, to maximize health insurance reimbursement. Gehrke, through companies she owned and controlled, received over $279 million in illegal kickbacks from the distributor of the grafts in exchange for the orders. Gehrke in turn paid the sales representatives tens of millions of dollars in unlawful kickbacks. Gehrke then referred the patients to a company co-owned by King, which contracted with nurse practitioners to apply the grafts. King’s company fraudulently billed Medicare, TRICARE (the health care program for U.S. service members and their families), CHAMPVA (the health care program for spouses and children of permanently disabled veterans), and commercial insurance plans for the grafts. Gehrke and King, who had no medical training, directed the nurse practitioners to suspend their own medical judgment and apply all grafts ordered by the sales representatives, even when medically unreasonable and unnecessary, which resulted in the application of grafts to infected wounds, wounds that had already healed, and wounds that were not responding to the grafts.

    From November 2022 through May 2024, Gehrke, King, and others, through companies they owned, operated, and controlled, submitted $1,212,005,778 in false and fraudulent claims to health insurance plans. This included over $960 million in false and fraudulent claims to the federal health care programs — Medicare, TRICARE, and CHAMPVA. The federal and private health care insurers paid $614,990,420 based on the false and fraudulent claims.

    In their plea agreements, Gehrke and King agreed to pay restitution in the amounts of $614,990,420 and $605,690,110, respectively. They also agreed collectively to forfeit over $410 million in funds that they obtained from the fraud. To date, the government has seized nearly $100 million in assets that Gehrke and King accumulated from the scheme, including bank account balances exceeding $68 million, four luxury vehicles valued over $980,000, $22 million of life insurance annuities, and jewelry and precious metals.

    Gehrke pleaded guilty on Oct. 24, 2024, to conspiracy to commit health care fraud and wire fraud. She is scheduled to be sentenced on Feb. 11 and faces a maximum penalty of 20 years in prison. King pleaded guilty on Jan. 31 to conspiracy to commit health care fraud and wire fraud and faces a maximum penalty of 20 years in prison. His sentencing date has not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; U.S. Attorney Gary M. Restaino for the District of Arizona; Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office; Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Director Kelly Mayo of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS); and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.

    The FBI, HHS-OIG, DCIS, and VA-OIG investigated the case.

    Trial Attorney Shane Butland of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Williams for the District of Arizona are prosecuting the case.

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

    MIL OSI USA News –

  • MIL-OSI Security: Fentanyl and Illegal Firearm Possession Lands Oklahoma City Man in Federal Prison for More Than Three Years

    Source: Office of United States Attorneys

    OKLAHOMA CITY – ABEL JOSE FARIAS, 21, of Oklahoma City, has been sentenced to serve 46 months in federal prison for possession of fentanyl with intent to distribute and illegal possession of two firearms after a previous felony conviction, announced U.S. Attorney Robert J. Troester.

    On July 18, 2024, a federal Grand Jury returned a four-count Indictment against Farias, charging him with possession of fentanyl with intent to distribute, two counts of being a felon in possession of a firearm, and possession of a firearm in furtherance of a drug-trafficking crime. According to public record, in December 2023, Drug Enforcement Administration (DEA) agents received information regarding a subject selling fentanyl pills. The agents arranged to meet with the subject to buy fentanyl at a gas station in Moore, Oklahoma, where they encountered and ultimately arrested Farias. In his vehicle, agents discovered a bag of fentanyl pills, as well as a firearm. After executing a federal search warrant, law enforcement found another firearm at Farias’s residence.

    On November 13, 2024, Farias pleaded guilty to counts 1, 2, and 4 of the Indictment, and admitted he possessed fentanyl which he intended to distribute, as well as two firearms, which he could not possess because of his felony convictions.

    At the sentencing hearing on January 28, 2024, U.S. District Judge Joe Heaton sentenced Farias to serve 46 months in federal prison, followed by three years of supervised release. In announcing the sentence, the Court noted the dangerous nature of fentanyl, and that firearms were involved in Farias’s previous convictions, leading Judge Heaton to the conclusion that the sentence needed to promote respect for the rule of law.

    Public record further reflects that Farias has previous felony convictions in Oklahoma County District Court, including those for first-degree burglary in case number CF-2022-2403 and being a felon in possession of a firearm in case number CF-2022-1866.

    This case is the result of an investigation by Homeland Security Investigations, the Oklahoma City Police Department, the Oklahoma State Bureau of Investigation, and the 21st District Attorney Criminal Investigations Division. Assistant U.S. Attorney Stan J. West prosecuted the case.

    Reference is made to public filings for additional information.

    MIL Security OSI –

  • MIL-OSI Security: Former Hospital Administrator Sentenced to 12 Years in Federal Prison in Identity Theft Scheme that Spanned Three Decades

    Source: Office of United States Attorneys

    Victim Falsely Prosecuted, Jailed, and Forcibly Medicated with Psychotropic Drugs

    An Iowa hospital administrator who lived under a false identity for more than 30 years and caused the false imprisonment, involuntary hospitalization, and forced medication of his victim was sentenced today to 12 years in federal prison.

    Matthew David Keirans, age 59, from Hartland, Wisconsin, received the prison term after an April 1, 2024, guilty plea to one count of false statement to a national credit union administration insured institution and one count of aggravated identity theft.

    Evidence presented at hearings in the case established that Keirans and his identity theft victim worked together at a hotdog cart in Albuquerque, New Mexico, in the late 1980s.  Keirans assumed the victim’s identity and, for the next three decades, used that identity in every aspect of his life.  Keirans obtained several false documents in the victim’s name, including a Kentucky birth certificate.

    In 2013, Keirans obtained employment as a high-level administrator in an Iowa City hospital.  Keirans provided the hospital with false identification documents during the hiring process, including a fictitious I-9 form, social security number, date of birth, and other identification documents in his victim’s name.  After getting hired, Keirans worked for the hospital remotely from his residence in Wisconsin.  Keirans’ access to, and roles in, the system architecture of the hospital’s computer infrastructure were “the highest it could be,” and Keirans “was the key administrator of critical systems.”

    Between March 2014 and May 2022, Keirans repeatedly obtained vehicle and personal loans from two credit unions in the Northern District of Iowa using the victim’s name, social security number, and date of birth.  Keirans obtained nine loans with a total value of over $250,000 from the credit unions.  Keirans also obtained various lines of credit from other lenders in the victim’s name and with his personal identifiers.

    Keirans also maintained deposits at a national bank in the victim’s name.  In August 2019, the victim, who was homeless at the time, entered the branch of the national bank in Los Angeles, California, and told a branch manager that he had recently discovered that someone was using his credit and had accumulated large amounts of debt.  The victim stated that he did not want to pay the debt and wished to close his accounts at the bank.  The victim presented the bank with his true social security card, as well as an authentic State of California identification card.  Due to the large amount of currency in the accounts, the branch manager asked the victim a series of security questions, which the victim was unable to answer.  The national bank then called the Los Angeles Police Department (“LAPD”).

    LAPD officers spoke with Keirans on the telephone, who stated he lived in Wisconsin and did not give anyone in California permission to access his bank accounts.  After faxing the LAPD a series of phony identification documents, the LAPD arrested Keirans’ victim on two felony charges.  After Keirans requested his victim’s prosecution, the victim was charged in Keirans’ name and held without bail at the Los Angeles County Jail.

    In the ensuing months, Keirans contacted the LAPD and Los Angeles District Attorney (LADA) numerous times requesting updates on the victim’s prosecution.  Meanwhile, Keirans’ victim continued to assert throughout the California criminal proceedings that he was not Keirans.  A California state court judge ultimately found Keirans’ victim was not mentally competent to stand trial and ordered Keirans’ victim to a California mental hospital.  The California state court also ordered Keirans’ victim to receive psychotropic medication. 

    In March 2021, Keirans’ victim pled “no contest” to the two felony charges in exchange for a “time-served” sentence, a $400 fine, and immediate release from custody.  In total, Keirans’ victim spent 428 days in county jail and 147 days in the mental hospital as a result of Keirans’ false reports to the LAPD and LADA.  The state court also ordered Keirans’ victim to “use only their true name, Matthew Keirans” in the future.

    After his release from jail and hospital, Keirans’ victim made numerous attempts to regain his identity.  For his part, Keirans continued to make false reports and statements to law enforcement officials in Wisconsin and California.  The State of California billed the victim over $118,000 for the costs of his “care” in the mental hospital between October 20, 2021, and March 15, 2021.

    In January 2023, after learning where Keirans was employed, the victim contacted the Iowa City hospital’s security department about Keirans.  The hospital referred Keirans’ complaint to a local law enforcement agency, which assigned an experienced detective, Ian Mallory, to investigate the victim’s complaint.  The detective conducted an investigation and, over the course of the ensuing months, unraveled Keirans’ identity theft scheme.  Among other things, the detective obtained DNA evidence that conclusively proved that Keirans was not the son of an elderly man in Kentucky, as Keirans had claimed, but that Keirans’ victim was the man’s son. 

    During an interview with the detective in July 2023, Keirans initially insisted that the victim was “crazy” and “needed help and should be locked up.”  After the detective presented Keirans with the results of the DNA testing, however, Keirans confessed to the three-decade identity theft scheme.  Keirans also admitted to providing fraudulent documents to authorities in Los Angeles from his residence in Wisconsin to aid in the arrest, prosecution, and incarceration of the victim.  A California court ultimately exonerated the victim after Keirans pled guilty in federal court.

    Keirans was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams.  Keirans was sentenced to 144 months’ imprisonment and fined $10,000.  He was ordered to make $6,191 in restitution the victim and ordered to repay $10,000 in court-appointed attorney fees.  Keirans must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.

    At the sentencing hearing, Chief Judge Williams said Keirans’ crime was “egregious,” “callous,” and “Kafkaesque.”  Chief Judge Williams stated Keirans “weaponized the criminal justice system to achieve his goals.”  Chief Judge Williams praised the “remarkable and exceptional work” of the Iowa detective.

    “Matthew Keirans spent decades pretending to be someone he was not, all the while knowing that his victim was suffering,” said United States Attorney Timothy T. Duax.  “Keirans used his victim’s identity to live his life, obtain loans, and lines of credit.  When the victim tried to clear his name of Keirans’ debts, Keirans deliberately and calculatedly lied to police officers and prosecutors in California in order to keep his victim locked up, unable to live his life, and to keep his own secret safe.  Today, Keirans has been held responsible for his actions and will spend years in prison.” 

    “I would like to thank Detective Mallory for his tenacious work on this case,” said University of Iowa Police Chief Lucy Wiederholt.  “His persistence in finding the facts highlights our commitment to helping victims of crime.”

    “The FBI is committed to working with our local law enforcement partners wherever we can to protect the American people and uphold the Constitution,” said Eugene Kowel, FBI Omaha Special Agent in Charge. “The FBI commends the University of Iowa Police Department’s tenacity in bringing Keirans’ fraudulent crimes to an end, and we remain dedicated to holding individuals like Keirans accountable when they break the laws of our country and impose harm on victims.”

    Keirans is being held in the United States Marshal’s custody until he can be transported to a federal prison.  

    The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Federal Bureau of Investigation and the University of Iowa Police Department.  

    Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

    The case file number is 23-CR-1020.

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: Arizona Couple Pleads Guilty to $1.2B Health Care Fraud

    Source: United States Attorneys General 7

    An Arizona couple pleaded guilty for causing over $1.2 billion of false and fraudulent claims to be submitted to Medicare and other health insurance programs for expensive, medically unnecessary wound grafts that were applied to elderly and terminally ill patients.

    According to court documents, Alexandra Gehrke, 39, and her husband, Jeffrey King, 46, both of Phoenix, conspired with others to orchestrate the massive scheme. Gehrke ran two companies, Apex Medical LLC and Viking Medical Consultants LLC, that contracted with medically untrained “sales representatives” to locate elderly patients, including hospice patients, who had wounds at any stage and order amniotic wound grafts from a specific graft distributor. Gehrke instructed and financially incentivized the sales representatives to order grafts only in sizes 4×6 centimeters or larger, even if the wound was much smaller, to maximize health insurance reimbursement. Gehrke, through companies she owned and controlled, received over $279 million in illegal kickbacks from the distributor of the grafts in exchange for the orders. Gehrke in turn paid the sales representatives tens of millions of dollars in unlawful kickbacks. Gehrke then referred the patients to a company co-owned by King, which contracted with nurse practitioners to apply the grafts. King’s company fraudulently billed Medicare, TRICARE (the health care program for U.S. service members and their families), CHAMPVA (the health care program for spouses and children of permanently disabled veterans), and commercial insurance plans for the grafts. Gehrke and King, who had no medical training, directed the nurse practitioners to suspend their own medical judgment and apply all grafts ordered by the sales representatives, even when medically unreasonable and unnecessary, which resulted in the application of grafts to infected wounds, wounds that had already healed, and wounds that were not responding to the grafts.

    From November 2022 through May 2024, Gehrke, King, and others, through companies they owned, operated, and controlled, submitted $1,212,005,778 in false and fraudulent claims to health insurance plans. This included over $960 million in false and fraudulent claims to the federal health care programs — Medicare, TRICARE, and CHAMPVA. The federal and private health care insurers paid $614,990,420 based on the false and fraudulent claims.

    In their plea agreements, Gehrke and King agreed to pay restitution in the amounts of $614,990,420 and $605,690,110, respectively. They also agreed collectively to forfeit over $410 million in funds that they obtained from the fraud. To date, the government has seized nearly $100 million in assets that Gehrke and King accumulated from the scheme, including bank account balances exceeding $68 million, four luxury vehicles valued over $980,000, $22 million of life insurance annuities, and jewelry and precious metals.

    Gehrke pleaded guilty on Oct. 24, 2024, to conspiracy to commit health care fraud and wire fraud. She is scheduled to be sentenced on Feb. 11 and faces a maximum penalty of 20 years in prison. King pleaded guilty on Jan. 31 to conspiracy to commit health care fraud and wire fraud and faces a maximum penalty of 20 years in prison. His sentencing date has not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; U.S. Attorney Gary M. Restaino for the District of Arizona; Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office; Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Director Kelly Mayo of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS); and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement.

    The FBI, HHS-OIG, DCIS, and VA-OIG investigated the case.

    Trial Attorney Shane Butland of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Matthew Williams for the District of Arizona are prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI USA: Cortez Masto, Finance Democrats Press RFK Jr. to Reject Big Pharma Pause on Medicare Negotiation

    US Senate News:

    Source: United States Senator for Nevada Cortez Masto

    Following Noncommittal Answer in Committee and Statement by CMS, Finance Democrats Press for Commitment to Continuing Medicare Drug Price Negotiation on Schedule

    Washington, D.C. – Senator Catherine Cortez Masto (D-Nev.) and all 12 Democratic members of the Senate Finance Committee sent a letter to Robert F. Kennedy Jr. pressing him to answer nearly a dozen questions regarding his views on Medicare drug price negotiation and confirm he will not pause negotiations, as CEOs representing the largest pharmaceutical companies have requested.

    “As a result of the Inflation Reduction Act, which passed without a single Republican vote, Medicare drug price negotiation is a powerful tool available right now to President Trump to make good on his long-standing promise to stand up to Big Pharma,” the senators wrote. “On behalf of the tens of millions of Americans who count on Medicare, Democrats on the Senate Finance Committee want to know whether the Trump Administration will follow through on negotiating with Big Pharma to deliver the lower costs promised to the American people.” 

    The letter, sent to Kennedy in his capacity as the nominee to be secretary of the Department of Health and Human Services (HHS), asks whether he will follow the Inflation Reduction Act’s statutory requirements related to Medicare drug price negotiation, whether the Trump administration will continue to defend the law in court against attacks by Big Pharma, and other questions. Earlier this month, the Centers for Medicare & Medicaid Services (CMS) released the list of the next set of drugs that will be negotiated by Medicare. Yesterday the agency, now run by the Trump administration, released a concerning statement that appeared to open the door to Big Pharma’s requests for changes in negotiations.

    “Contrary to what you suggested in today’s hearing, the Trump Administration’s statement is far from an embrace of drug price negotiation and appears to be opening the door to changes that could undermine Medicare’s ability to get the best price possible on drugs,” the senators continued.

    The full letter can be found here.

    Senator Cortez Masto has worked to lower drug costs for Americans. She passed legislation to allow Medicare to negotiate lower drug prices and cap the cost of insulin at $35-a-month for Medicare recipients through the Inflation Reduction Act. She has introduced bipartisan legislation to improve transparency of Medicare Advantage plans and has pushed pharmacy benefit managers to help continue to lower prescription drug costs.

    MIL OSI USA News –

  • MIL-OSI Security: Albany County Man Sentenced to 25 Years for Sexual Exploitation of a Child

    Source: Office of United States Attorneys

    SYRACUSE, NEW YORK – Thomas Berrington, age 33, of Colonie, New York, was sentenced today to 25 years in federal prison for his repeated sexual exploitation of a child announced United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

    As part of his prior guilty plea, Berrington admitted that between June of 2023 and January of 2024, he repeatedly sexually abused a minor female child for the purpose of photographing and video recording the abuse. The victim was eight years old when Berrington’s abuse of her began.

    United States District Judge Mae A. D’Agostino also sentenced Berrington to a 25-year term of supervised release, to begin following his term of imprisonment. Berrington will also be required to pay a special assessment of $200, an additional special assessment of $5,000, and register as a sex offender upon his release from prison.

    The case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Colonie Police Department. The case was prosecuted by Assistant United States Attorney Adrian S. LaRochelle as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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 https://www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI USA: Former Senior Adviser for the Federal Reserve Indicted on Charges of Economic Espionage

    Source: US State of North Dakota

    John Harold Rogers, 63, of Vienna, Virginia, a former Senior Adviser for the Federal Reserve Board of Governors (FRB), was arrested today on charges that he conspired to steal Federal Reserve trade secrets for the benefit of the People’s Republic of China (PRC).

    In furtherance of the conspiracy, allegedly made false statements to the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB-OIG), and those false statements had a material impact on its investigation.

    “As alleged, the defendant violated the trust placed in him by the Federal Reserve Bank by putting U.S. trade secrets in the hands of his PRC co-conspirators, knowing full well that such information would benefit the PRC Government and PRC instrumentalities,” said Devin DeBacker, head of the Justice Department’s National Security Division. “The Justice Department will continue to use all the tools at its disposal to disrupt economic espionage and protect our national security.”

    “President Trump tasks us with protecting our fellow Americans from all enemies, foreign and domestic. As alleged in the indictment, this defendant leveraged his position within the Federal Reserve to pass sensitive financial information to the Chinese government, a designated adversary,” said U.S. Attorney Edward R. Martin Jr. for the District of Columbia. “Let this indictment serve as a warning to all who seek to betray or exploit the United States: law enforcement will find you and hold you accountable.”

    “As alleged in the indictment, Rogers betrayed his country while employed at the Federal Reserve by providing restricted U.S. financial and economic information to Chinese government intelligence officers,” said Assistant Director Kevin Vorndran of the FBI Counterintelligence Division. “This information could allow adversaries to illegally gain a strategic economic advantage at the expense of the U.S. This indictment sends a clear message that the FBI and our partners will hold accountable those who threaten our national security.”

    “The Chinese Communist Party has expanded its economic espionage campaign to target U.S. government financial policies and trade secrets in an effort to undermine the United States and become the sole superpower,” said Assistant Director in Charge David Sundberg of the FBI Washington Field Office. “Today’s indictment represents the FBI’s unwavering commitment to protect U.S. national security interests and U.S. jobs and bring to justice those who are willing to betray their country for personal gain.”

    “This indictment sends a clear message that those who deliberately misuse sensitive Federal Reserve information for their own personal gain and lie about it to investigators will be held accountable for their actions,” said Special Agent in Charge John T. Perez of the FRB-OIG, Headquarters Operations.

    According to the indictment, Rogers, a U.S. citizen with a Ph.D. in economics, worked as a Senior Adviser in FRB’s Division of International Finance of the FRB from 2010 until 2021, where he was entrusted with confidential FRB information. The confidential information that Rogers allegedly shared with his Chinese co-conspirators, who worked for the intelligence and security apparatus of China and who posed as graduate students at a PRC university, is economically valuable when secret.

    China holds a large amount of U.S. foreign debt (approximately $816 billion as of October 2024). The data Rogers shared with his co-conspirators could allow China to manipulate the U.S. market, in a manner similar to insider trading. Gaining advance knowledge of U.S. economic policy, including advance knowledge of changes to the federal funds rate, could provide China with an advantage when selling or buying U.S. bonds or securities.

    The indictment alleges that, from at least 2018, Rogers allegedly exploited his employment with the FRB by soliciting trade-secret information regarding proprietary economic data sets, deliberations about tariffs targeting China, briefing books for designated governors, and sensitive information about Federal Open Market Committee (FOMC) deliberations and forthcoming announcements. He passed that information electronically to his personal email account, in violation of FRB policy, or printed it prior to traveling to China, in preparation for meetings with his co-conspirators.

    Under the guise of teaching “classes,” Rogers met with his co-conspirators in hotel rooms in China where he conveyed sensitive, trade-secret information that belonged to the FRB and the FOMC. In 2023, Rogers was paid approximately $450,000 as a part-time professor at a Chinese university.

    On Feb. 4, 2020, in response to questioning by the FRB-OIG, Rogers lied about his accessing and passage of sensitive information and his associations with his co-conspirators.

    Rogers is charged with conspiracy to commit economic espionage and with making false statements.

    The FBI Washington Field Office and FRB-OIG are investigating the case.

    Assistant U.S. Attorney Kimberly Paschall for the District of Columbia and Trial Attorneys Nicholas Hunter and Steve Marzen of the National Security Division’s Counterintelligence and Export Section are prosecuting the case.

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

    MIL OSI USA News –

  • MIL-OSI USA: Sen. Chuck Hufstetler: January Under the Gold Dome

    Source: US State of Georgia

    The Georgia General Assembly is back in session and it is a privilege to return to work under the Gold Dome, where I remain steadfast in my commitment to addressing the issues that matter most to Georgians across our great state.

    This legislative session is already off to a strong start. Governor Kemp has laid out a bold vision, focusing on initiatives that include increasing funding for school safety, enhancing our skilled workforce, announcing 100,000 million dollars in relief for families and businesses impacted by Hurricane Helene, and continuing to expand access to affordable healthcare for hardworking Georgians. By investing in high-demand, high-skill, and high-wage career opportunities, we are taking critical steps to secure Georgia’s economic future.

    After an uneventful week due to the snowfall in Atlanta and South Georgia, this week concludes the third week of the 2025 Legislative Session, and we’re staying focused on passing commonsense legislation that puts Georgia families, businesses and communities first.

    Last week’s snowstorm may have delayed budget hearings for a few days, but it didn’t slow us down. The General Assembly has been hard at work in joint sessions, carefully reviewing budget requests to ensure taxpayer dollars are spent wisely. Passing a balanced budget is not only our constitutional duty—it’s the foundation of a responsible government that serves its people.

    One of the most crucial budget proposals this session is Governor Brian P. Kemp’s plan to return $1 billion in surplus funds directly to taxpayers. Thanks to years of conservative budgeting and fiscal responsibility, we’re in a position to give back to the hardworking Georgians who keep our state running. This is just part of the $2.2 billion in statewide allocations designed to benefit families, businesses and communities across Georgia. I’m proud to support Gov. Kemp’s efforts to strengthen our economy by putting more money back in your pockets.

    Another key priority is ensuring communities hit hardest by Hurricane Helene have the resources they need to rebuild. Gov. Kemp has proposed $614.72 million in recovery funding, including $150 million for the Governor’s Emergency Fund to help with debris removal and housing assistance. Another $300 million will go to the Georgia Department of Transportation to restore roads and infrastructure. Many rural counties are still reeling from this storm, and we’re committed to making sure they get the support they need to recover and move forward.

    Back at the Capitol, we hit the ground running this week, advancing legislation that reflects our values and priorities. I’m especially proud to sponsor Senate Bill 34. I introduced Senate Bill 34 in anticipation of technology companies building AI databases in Georgia. AI databases use exorbitant amounts of electricity, and I have introduced this bill to prevent electric providers from including the electric fees of these databases in typical Georgia consumer rates.

    I am honored to be re-appointed as Chairman of the Senate Committee on Finance and Ex-Officio of the Senate Committee on Appropriations, in addition to serving as a member on the Senate Committees on Health and Human Services, Higher Education and Rules. I thank Lt. Governor Jones for these appointments, and I look forward to serving District 52 and Georgia on these committees

    Finally, I encourage students ages 12 to 18 to apply for the Senate Page Program. This is an excellent way for young people to see firsthand how the General Assembly works. If you know a student who might be interested, they can apply on the Senate website here.

    As always, I’m here to listen. If you have any questions, concerns, or ideas about our work at the Capitol, please don’t hesitate to reach out. It’s an honor to serve you, and I appreciate your trust as we work together throughout the remainder of the 2025 legislative session.

    # # # #

    Sen. Chuck Hufstetler serves as Chairman of the Senate Committee on Finance. He represents the 52nd Senate District which includes portions of Bartow, Floyd, and Gordon counties. He can be reached at (404) 656-0034 or via email at chuck.hufstetler@senate.ga.gov.

    For all media inquiries, please reach out to     SenatePressInquiries@senate.ga.gov.

    MIL OSI USA News –

  • MIL-OSI Security: U.S. Marshals in Maine Arrest Man Wanted for Sexual Exploitation of a Child in Colorado

    Source: US Marshals Service

    Portland, ME – The U.S. Marshals Service (USMS), Maine Violent Offender Task
    Force (MVOTF) announces the arrest of Patrick Byrne, 29, in Livermore Falls, Maine.
    According to Colorado authorities, an arrest warrant was issued for Byrne on November 04, 2024, for two counts of sexual exploitation of a child out of Bloomfield County Court in
    Colorado.

    Based upon an investigation from the United States Marshals Service, Maine Violent
    Offender Task Force, Investigators developed information that Byrne was currently residing in Maine. Through a collaborative effort, the USMS, Maine Violent Offender Task Force
    was able to locate Byrne and safely apprehend him at a residence in Livermore Falls,
    Maine. Byrne was charged as a fugitive from justice and is pending extradition back to
    Colorado.

    The USMS, Maine Violent Offender Task Force received assistance by the USMS, District
    of Colorado, Violent Offender Task Force and the Livermore Falls, Maine Police
    Department.

    The USMS, Maine Violent Offender Task Force is comprised of members of the U.S.
    Marshals Service, Maine Department of Corrections, Biddeford Police Department, U.S.
    Customs Border Protection, U.S. Immigration and Customs Enforcement, and the Maine
    National Guard Counterdrug Program.

    If you have any information regarding the whereabouts of any state or federal fugitive
    please contact the United States Marshals Service, District of Maine at
    MED.TIPLINE@usdoj.gov, or submit a USMS Web Tip. 

    MIL Security OSI –

  • MIL-OSI Security: Wadena — Wadena RCMP investigating break and enter

    Source: Royal Canadian Mounted Police

    On January 10, 2025, Wadena RCMP received a report of a break-in at the curling rink in Wadena.

    Investigation determined an adult male entered the rink then left. No items were reported as stolen to police.

    The suspect was caught on video surveillance.

    The suspect is described as wearing a two-coloured jacket, glasses, gloves and a backpack. He had a beard or goatee.

    Investigators believe that this break-in may be connected to other break-ins to municipal offices and small businesses in Saskatchewan over the past few years. As this is an active and ongoing investigation, we are unable to provide a list of the potentially-connected incidents at this time, but can say they occurred in southern and central Saskatchewan.

    If you recognize this suspect or have information about this or any other break-in, contact Saskatchewan RCMP at 310-RCMP. Information can also be submitted anonymously by contacting Saskatchewan Crime Stoppers at 1-800-222-TIPS (8477) or www.saskcrimestoppers.com.

    MIL Security OSI –

  • MIL-OSI USA: DOE Announces New Tools Making it Easier for Home Contractors to Install Energy Saving Appliances and Lower Costs

    Source: US Department of Energy

    As More Americans Seek Home Energy Upgrades, New DOE Resources Will Enable Easier Access to the Historic Money Saving Incentives Provided by the Biden-Harris Administration’s Investing in America Agenda

    WASHINGTON, D.C.—  In support of the Biden-Harris Administration’s Investing in America agenda, the U.S. Department of Energy (DOE) today released new resources to help American households and home energy efficiency contractors understand how to qualify for thousands of dollars in federal tax credits, made available by the Inflation Reduction Act, for home upgrades. The resources include a Tax Credit Product Lookup Tool to help determine if new equipment is eligible for tax credits; information that walks contractors through key elements of home insulation products that can lower utility bills and qualify for tax credits; and a training module on how contractors can leverage a range of home energy efficiency incentives. By making it easier for households and contractors to know if they qualify for these tax credits, this tool will enable more Americans to access them and to lower their utility bills. 

    These resources will help drive access to the Energy Efficient Home Improvement Credit, which more than 2.3 million families have already claimed, saving over $2 billion total—an average tax cut of $880 per household—according to the U.S. Department of the Treasury. The Energy Efficient Home Improvement Credit, which is available through 2032, allows households to receive up to $3,200 in tax credits annually for a variety of energy-efficient home improvements. Improving home energy efficiency and upgrading equipment will save homeowners money on utility bills and improve home resilience, and is key to the Biden-Harris Administration’s national clean energy goals. 

    “Across the board, the Biden-Harris Administration is making it easier for more American households to save energy and save money on home improvement upgrades that will keep money in their pockets for years to come,” said U.S. Secretary of Energy Jennifer M. Granholm. “Contractors are the go-to resource for homeowners looking to upgrade insulation, wiring and appliances, which is why we are providing new tools that get contractors the information to ensure their customers can unlock Investing in America savings.”  

    New Resources  

    • The Tax Credit Product Lookup Tool can help determine if new heating, air-conditioning, or water-heating equipment may be eligible for the Energy Efficient Home Improvement Credit. Contractors—or even homeowners—can enter information about a particular product to determine if it meets tax credit eligibility criteria and receive a single page report that the homeowner can print or save for their records.
    • The home insulation explainer walks contractors and homeowners through the key elements of home insulation and air-sealing products that can lower utility bills and qualify for tax credits.
    • The new contractor training module provides detailed introductory information on how contractors can leverage residential energy efficiency incentives, including those available from federal, state, local, and utility-run programs. The 30-minute video is available for free on the Building Science Education Solution Center. The training is complementary to DOE’s Energy Skilled recognition program, which contractors can use to find training and certification programs that develop the skills and knowledge needed for clean energy jobs. 

    These new resources build on existing DOE tools to help Americans explore energy-saving technologies for their homes, including heat pump water heater and cold climate heat pump tools to guide contractors and homeowners through the decision-making process for selecting equipment. 

    Homeowners can also go to the ENERGY STAR website to find information on the many federal tax credits offered for energy-efficient home heat pump technology, home improvements, and clean energy equipment upgrades. The website also offers detailed instructions for claiming tax credits as well as strategies for maximizing federal tax savings.  

    Many energy-efficient tax credits can be used together with DOE Home Energy Rebate programs and other state, local, and utility energy efficiency incentives, helping consumers save even more on purchase and installation costs. Collectively, the product lookup and decision tools, along with contractor training, will help Americans improve their homes’ energy efficiency while ensuring they get the right equipment for their comfort needs, qualify for incentives, and lower their energy bills. 

    MIL OSI USA News –

  • MIL-OSI USA: Investing in Developmental Disability Service Providers

    Source: US State of New York

    Governor Kathy Hochul today announced nearly $850 million dollars in updated reimbursement rates for non-profit residential and day service providers licensed by the New York State Office for People With Developmental Disabilities. The FY 2025 Enacted Budget, combined with additional federal funding, provided for more than $400 million in new resources to be allocated each year for OPWDD’s service providers. Governor Hochul’s FY 2026 Executive Budget continues this investment and will help to fill critical gaps in this workforce while creating new job opportunities. This investment will enable providers to raise wages for their dedicated staff, ultimately making New York a more affordable place to live and work. Our provider industry has faced challenges, and this bold initiative by Governor Hochul demonstrates a commitment to supporting this sector, its hardworking people and the communities they serve.

    “New York’s service providers are providing a critical service to people with developmental disabilities and their families, and they deserve to be paid a fair rate for the services they deliver,” Governor Hochul said. “This rate adjustment is expected to enable a majority of service providers to increase pay to their frontline staff, which would make living in New York more affordable for one of our hardest working, most dedicated and compassionate workforces.”

    Rate rebasing is a federally required process where provider reimbursement rates are updated to reflect changes in the actual cost of delivering services. These resources will enable provider agencies to offer higher wages for direct care staff, helping to address staffing vacancies and reduce turnover, which are critical to improving the quality of care for people with disabilities. Additionally, the funding will support other essential costs associated with delivering these vital services.

    Since 2022, the State has made more than $2.8 billion available to OPWDD providers to support investments in the workforce – about $1.4 billion in one-time federally-approved bonuses, nearly $1.1 billion through three consecutive Cost of Living Adjustments (COLAs), including the 2.84 percent COLA included in last year’s budget, and over $340 million through various State-funded bonus initiatives. Cumulatively, more than $3.7 billion will have been made available to OPWDD’s network of non-profit providers, when including the new resources from this unprecedented investment in rates.

    Office of the Chief Disability Officer Kim Hill Ridley said, “This investment is a key part of strengthening the disabilities service system and prioritizing wage increases for our direct support workforce who assist New Yorkers with disabilities in their daily lives. Thank you to Governor Hochul for this resource that helps providers to remain competitive while providing the very best support and services.”

    Office for People With Developmental Disabilities (OPWDD) Acting Commissioner Willow Baer said, “OPWDD is pleased to be able to release these significant rate adjustments that will help our service providers continue to maintain critical support and recruit and retain talented and qualified frontline staff. I am proud of this important investment and am excited to see this funding passed along to address long-standing concerns and strengthen this vital workforce.”

    State Senator Patricia Fahy said, “Investing in our caregivers and direct support workforce that provide critical services and care for New Yorkers living with disabilities is how we address vacancies, retention, and ensure continuation of that care. This funding will allow providers to offer more competitive wages and address staffing challenges, ultimately leading to improved care for New Yorkers living with disabilities and their families. I thank Governor Hochul and Commissioner Baer for recognizing the importance of investing in our frontline workforce, and I look forward to working with my colleagues to further invest in our direct support professional workforce.”

    Assemblymember Angelo Santabarbara said, “Direct Support Professionals are the backbone of our care system, providing critical support that allows individuals with developmental disabilities to live with dignity and independence. This investment is a significant step in strengthening disability services, ensuring providers can offer more competitive wages to recruit and retain the dedicated professionals who make a real difference in people’s lives. It helps address workforce shortages and reinforces our commitment to a strong and sustainable care system. I appreciate Governor Hochul’s recognition of this need and commitment to supporting New York’s disability service providers. As the father of a son with a disability, this is an issue I am deeply passionate about, and I remain focused on advancing policies that strengthen these services, ensuring individuals with disabilities and their families have access to the care and support they deserve.”

    NY Alliance for Inclusion and Innovation President and CEO Michael Seereiter said, “The NY Alliance and its 135 not-for-profit provider members are extremely grateful to Governor Kathy Hochul and OPWDD Acting Commissioner Willow Baer for this unprecedented investment that will significantly enhance our ability to support the 130,000+ New Yorkers living with intellectual and developmental disabilities (I/DD) and their families who are supported by OPWDD. These resources will give our residential and day services providers the ability to attract and engage direct support, frontline supervisor, and other critical staff positions necessary for providing high quality supports, and address other essential costs associated with these services.”

    ARC NY CEO Erik Geizer said, “New York state has made a meaningful and much-needed investment in people with intellectual and developmental disabilities. Years of insufficient investment has driven a crisis in our system that has diminished the quality and availability of essential supports and services. We applaud Governor Hochul and OPWDD for collaborating with providers to better align investment with the current cost of delivering services. These additional resources will help providers better meet the needs of the people we support. We look forward to continuing to work with the state to ensure we honor our commitment to provide high quality, compassionate care for our citizens with special needs.”

    CP State CEO and President Mike Alvaro said, “We applaud New York State and the Office for People With Developmental Disabilities (OPWDD) for updating provider rates, marking an important investment in services for people with disabilities. We also appreciate Governor Kathy Hochul and Acting Commissioner Willow Baer for their commitment and efforts to bolster the developmental disability system. This support helps providers strengthen their workforce, meet rising costs, and—most importantly—ensure a high-quality network of care is available statewide for individuals with intellectual and developmental disabilities.”

    Winifred Schiff Inter Agency Council CEO said, “We applaud Governor Hochul and Acting Commissioner Willow Baer for their support of the developmental disabilities service sector, their recognition that the cost of providing services has steadily grown while rates lagged far behind, and their appreciation that our front-line staff provide essential, life supporting and affirming services that make life possible for so many New Yorkers. While our work is not done, the recent rate adjustment will go a long way towards compensating for years of stagnant rates and some of the losses experienced by providers during the COVID pandemic, and we trust that Governor Hochul will continue to stand with us so that together, we can achieve adequate wages for our front line work force, and our sector will continue to support New Yorkers with developmental disabilities and their families, far into the future.”

    DDAWNY President Mindy Cervoni said, “The Developmental Disabilities Alliance of Western New York (DDAWNY) is deeply grateful to Governor Hochul for her unwavering commitment to New York’s non-profit service providers supporting individuals with developmental disabilities. This transformative funding empowers providers to continue to deliver high-quality services while offering more competitive wages to direct support professionals – the compassionate and skilled individuals who deliver hands-on care and vital support to people with developmental disabilities. By recognizing the invaluable work of these professionals and ensuring they are compensated fairly, this investment strengthens workforce stability and significantly enhances the quality of life for the individuals and families who depend on their care.”

    MIL OSI USA News –

  • MIL-OSI Security: U.S. Attorney, U.S. Secret Service, and FBI Announce Federal Charges Against Albuquerque Man for Making Threats Against President Trump

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

    ALBUQUERQUE – A federal grand jury has indicted an Albuquerque man for interstate communications containing a threat against then President Donald J. Trump.

    The criminal complaint alleges that Tyler Miles Leveque, 37, made multiple threatening social media posts between January 2 and 4, 2025, expressing intent to harm the President-Elect and others at an upcoming rally. The posts included statements such as “you and your rich friends are dead no threat a promise” and references to violence at an event reportedly planned for January 19th in Washington D.C.

    During an interview with agents from the U.S. Secret Service and the Federal Bureau of Investigation on January 6, 2025, Leveque admitted to making the threatening posts and recently purchasing a firearm. Investigators confirmed Leveque had recently bought a gun from a local business.

    Leveque will remain in custody pending trial, which has not been scheduled. If convicted, Leveque faces up to five years in prison.

    U.S. Attorney Alexander M.M. Uballez, Ron Emmot, Resident Agent in Charge of the U.S. Secret Service Albuquerque Resident Office, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The U.S. Secret Service investigated this case with the assistance of the FBI Albuquerque Field Office and the Albuquerque Police Department. Assistant U.S. Attorney Sammy Hurtado is prosecuting the case.

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

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Venezuelan Man Charged With Conspiracy To Distribute Methamphetamine, Possession Of A Firearm In Furtherance of Drug Trafficking Crime

    Source: Office of United States Attorneys

    DENVER – The United States Attorney’s Office for the District of Colorado announces that Jose Manuel Guerra-Caballero, 37, of Venezuela, was charged with one count of conspiracy to distribute more than 500 grams of a substance containing methamphetamine, and one count of possession of a firearm in furtherance of a drug trafficking crime.

    According to the complaint, Guerra-Caballero, described by a co-conspirator as a member of the Tren de Aragua criminal organization, conspired with six other individuals to provide armed protection for a drug transaction involving ten pounds of methamphetamine. Guerra-Caballero arranged the protection remotely and confirmed over the phone that his co-conspirators were armed and ready to serve in the operation.

    The drug deal was a ruse created by undercover ATF agents after Guerra-Caballero and his associates had offered their services for various illegal and violent activities. The undercover operation came on the heels of multiple purchases of firearms by ATF undercover officers that Guerra-Caballero believed would be trafficked to Mexico.

    The defendant was arrested in Indiana and made his initial appearance in front of Judge Colin H. Lindsay in the Western District of Kentucky.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations are handling the investigation.  The prosecution is being handled by the Violent Crimes and Immigration Enforcement Section of the United States Attorney’s Office in the District of Colorado.

    Case Number: 25-mj-17

    MIL Security OSI –

  • MIL-OSI Security: DENHAM SPRINGS MAN SENTENCED TO 78 MONTHS IN FEDERAL PRISON FOR DISTRIBUTION OF CHILD PORNOGRAPHY

    Source: Office of United States Attorneys

    United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Judge Brian A. Jackson sentenced Barry Paul Vining, age 57, of Denham Springs, Louisiana, to 78 months in federal prison following his conviction for distribution of child pornography. Vining must serve five years of supervised release upon completing his term of imprisonment. The Court also ordered Vining to pay $357,000 in restitution and ordered him to register as a sex offender upon his release.

    According to admissions made as part of his guilty plea, on November 27, 2022, Vining knowingly distributed the two images of child pornography when he uploaded them to a file sharing service accessed via the internet, and that allowed other users of the service around the world to download and share the images. In addition, at the time Vining distributed the child pornography, he possessed files that contained numerous images and videos of child pornography.

    This matter was investigated by the U.S. Department of Homeland Security – Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Paul L. Pugliese.

    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 CEOS, 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 http://www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: Assault on Woman Sends Browning Man to Prison for More Than Three Years

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

    GREAT FALLS — A Browning man who admitted to beating and then using a belt to assault a woman on the Blackfeet Indian Reservation was sentenced today to three years and two months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.

    The defendant, Briar Joseph Crawford, 29, pleaded guilty in September 2024 to assault with a dangerous weapon.

    Chief U.S District Judge Brian M. Morris presided.

    The government alleged in court documents that on Aug. 6, 2023, Crawford went to Glacier National Park go fishing with the victim, identified as Jane Doe. After consuming alcohol, Crawford and Doe argued, and the conflict escalated to Crawford assaulting Doe over several hours. At one point, Crawford removed his belt, wrapped it around Doe’s neck, grabbed it and lifted her weight off the ground until she blacked out. Doe suffered numerous injuries from the prolonged assault.

    The U.S. Attorney’s Office prosecuted the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Eleven Members of Deadly Drug Trafficking Organization Sentenced to Prison

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

    NORFOLK, Va. – Eleven Virginia residents have been sentenced to prison for their roles in a violent drug trafficking organization that was responsible for a double homicide in Chesapeake. A twelfth defendant is awaiting sentencing.

    According to court records and evidence presented at trial, between January 2020 and November 2022, Cortney Allen Conley, aka KO, 36, of Virginia Beach, ran a large-scale, violent interstate drug trafficking organization principally based in the Hampton Roads area. The organization frequently sold drugs at “pop-up” shops, which regularly appeared in new locations to avoid detection by law enforcement.

    In 2021, Conley was robbed at gunpoint at a pop-up on Providence Road in Chesapeake, after which Conley and his co-conspirators were regularly armed while they trafficked drugs. In July 2021, an armed robber attempted to rob a pop-up, and shop workers, including Javaid Akhtar Reed, 27, of Chesapeake, and Aaron Butler Hunter, 38, of Virginia Beach, defended Conley’s drugs and drug proceeds. During the attempted robbery, Reed ordered the attempted robber out of the shop at gunpoint.

    On May 13, 2022, two armed subjects attempted to rob the organization’s pop-up on Wintercress Way in Chesapeake. Conley and Rashaun Marcquez Johnson, 28, of Virginia Beach, shot and killed the two subjects. During the gun battle, Davian Marcelis Jenkins, 27, of Suffolk, pistol-whipped one of the subjects as the subject lay dying in the foyer. During the shootout, bullets flew across the hall into another apartment and hit a child’s play kitchen. Immediately afterward, Conley and Jenkins removed controlled substances, drug proceeds, and firearms from the pop-up and fled. Conley directed Jenkins to go back to the shooting scene and remove security cameras, which had recorded the shootout. Jenkins removed one camera from the front door of the apartment. Conley then fled the state.

    On Nov. 8, 2022, Conley was arrested in Virginia Beach at a pop-up he established after the double homicide. During the arrest, Conley jumped from a second story window and tried to run from the police.

    On April 15, 2024, after a ten day jury trial, Conley, Reed, and Kyron Speller, 29, of Norfolk, were convicted for their involvement in the organization.

    Conley was convicted of continuing criminal enterprise; possession with intent to distribute marijuana; possession with intent to distribute psilocybin and psilocyn; possessing, brandishing, and discharging a firearm in furtherance of a drug trafficking crime. Conley was sentenced today to 40 years in prison.

    Other members of the organization who were sentenced include:

    Name

    Date of Sentencing

    Sentence Imposed
    Javaid Akhtar Reed

    Dec. 23, 2024

    		 14 years, 3 months
    Corey Melic Blackwell

    July 12, 2024

    		 13 years
    Aaron Hunter

    Sept. 26, 2024

    		 10 years
    Kasheim Bryant

    Oct. 31, 2024

    		 7 years
    Amadeo Ilan Classen

    Nov. 7, 2024

    		 10 years
    Davian Marcelis Jenkins

    Nov. 7, 2024

    		 4 years
    Jeron D’Nell Cephus

    July 22, 2024

    		 3 years, 6 months
    Kyron Speller

    Oct. 25, 2024

    		 3 years, 5 months
    Lateya Conley

    Sept. 25, 2024

    		 3 years
    Jasmine Deneen Cuffee

    Oct. 31, 2024

    		 1 year, 3 months

    Johnson is scheduled to be sentenced on Feb. 21, 2025.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Michael Feinberg, Acting Special Agent in Charge of the FBI’s Norfolk Field Office; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Mark G. Solesky, Chief of Chesapeake Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.

    Assistant U.S. Attorneys Megan M. Montoya, Joe DePadilla, and Luke Bresnahan prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-147.

    MIL Security OSI –

  • MIL-OSI: Pathfinder Bancorp, Inc. Announces Financial Results for Fourth Quarter and Full Year 2024

    Source: GlobeNewswire (MIL-OSI)

    Fourth quarter results include EPS of $0.69, deposit growth, commercial loan growth, a gain on the sale of its insurance agency, and strong contributions from new and established
    Pathfinder Bank teams across Central New York

    OSWEGO, N.Y., Jan. 31, 2025 (GLOBE NEWSWIRE) — Pathfinder Bancorp, Inc. (“Pathfinder” or the “Company”) (NASDAQ: PBHC) announced its financial results for the fourth quarter and year ended December 31, 2024.

    The holding company for Pathfinder Bank (“the Bank”) earned net income attributable to common shareholders of $4.3 million or $0.69 per share in the fourth quarter of 2024, including a benefit of approximately $1.4 million from a gain on the previously announced sale of its insurance agency, net of taxes and transaction-related expenses.

    The Company reported a net loss of $4.6 million or $0.75 per share in the third quarter of 2024, reflecting $9.0 million in provision expense that primarily resulted from a comprehensive loan portfolio review the Bank elected to undertake as part of its ongoing commitment to continuously improve its credit risk management approach, and net income of $2.5 million or $0.41 per share in the fourth quarter of 2023. For the full year, the Company earned net income of $3.8 million or $0.60 per share in 2024 and $9.3 million or $1.51 per share in 2023.

    Fourth Quarter and Full Year 2024 Highlights and Key Developments

    • Provision expense was $988,000 in the fourth quarter of 2024, compared to $9.0 million in the linked quarter and $265,000 in the fourth quarter of 2023, while the allowance for credit losses (“ACL) increased to 1.88% of loans from 1.87% on September 30, 2024 and 1.78% on December 31, 2023.
    • Net interest income was $10.8 million, compared to the $11.7 million in the linked quarter that benefited from a $887,000 catch-up interest payment, and $9.2 million in the fourth quarter of 2023. Full-year net interest income was $41.4 million in 2024 and $38.9 million in 2023.
    • Net interest margin (“NIM”) was 3.15% in the fourth quarter of 2024, compared to the 3.34% in the third quarter that benefited by 25 basis points from the catch-up interest payment, and 2.74% in the year-ago period.
    • Non-interest income was $4.9 million, including a gross, pre-tax gain of $3.2 million on the October 2024 sale of the Company’s insurance agency, compared to $1.7 million in the linked quarter and $1.3 million in the year-ago period. Full-year non-interest income was $9.6 million in 2024 and $5.2 million in 2023.
    • Non-interest expense was $8.5 million with $155,000 in October 2024 insurance agency transaction-related costs, $10.3 million in the linked quarter with $1.6 million in July 2024 branch acquisition-related costs, and $7.0 million in the year-ago period. Full-year non-interest expense was $34.4 million in 2024 and $29.4 million in 2023.
    • Pre-tax, pre-provision (“PTPP”) net income grew to $3.8 million, compared to $3.4 million in the linked and year-ago periods. PTPP net income, which is not a financial metric under generally accepted accounting principles (“GAAP”), is a measure that the Company believes is helpful to understanding profitability without giving effect to income taxes and provision for credit losses. Full-year PTPP net income was $13.5 million in 2024 and $14.7 million in 2023.
    • Total deposits were $1.20 billion at period end, growing by $8.1 million or 2.7% annualized from September 30, 2024 and $84.3 million or 7.5% from December 31, 2023. The Bank’s loan-to-deposit ratio was 76.3% on December 31, 2024.
    • Total loans were $919.0 million at period end, compared to $921.7 million on September 30, 2024 and $897.2 million on December 31, 2023. Commercial loans were $539.7 million at period end, $534.5 million on September 30, 2024 and $524.2 million on December 31, 2023.

    “Pathfinder’s core net interest income growth and net interest margin expansion were key contributors to fourth quarter earnings, and are a product of disciplined asset and liability pricing, the Bank’s valuable core deposit franchise, and our relationship-based commercial and retail lending in Central New York,” said President and Chief Executive Officer James A. Dowd. “In addition, we continue to invest in talent to serve middle market businesses throughout the Syracuse area, building on our foundation in this community. The East Syracuse branch acquired last summer, and our operations throughout the area, made important contributions to Pathfinder’s performance in the fourth quarter, and we look forward to further enhancing the breadth and depth of our commercial and other customer relationships in this important growth market.”

    Dowd added, “We also intend to maintain a sharp focus on managing operating expenses, along with our ongoing efforts to continuously enhance the Company’s proactive credit risk management approach. While there may be short-term variability in measures of operating efficiency and asset quality, our leadership team is fully committed to taking the steps necessary to make sustainable improvements over the long term and continue building franchise value for the benefit of our shareholders.”

    Net Interest Income and Net Interest Margin
    Fourth quarter 2024 net interest income was $10.8 million, a decrease of 7.8% from the third quarter of 2024, or a decrease of 0.2% when excluding an $887,000 third quarter catch-up interest payment associated with purchased loan pool positions. A decrease in interest and dividend income of $1.7 million was primarily attributed to average yield decreases of 44 basis points on loans including 39 basis points from the catch-up interest payment, 108 basis points on tax-exempt investment securities, and 28 basis points on taxable investment securities. The corresponding decreases in income from loan interest, tax-exempt investment securities, and taxable investment securities were $902,000, $24,000, and $337,000, respectively. A decrease in interest expense of $761,000 was attributed to intentional reductions in the cost of time deposits and other interest-bearing deposits, as well as reductions in borrowings expense.

    Net interest margin was 3.15% in the fourth quarter of 2024, compared to 3.34% in the linked quarter. The decrease was due to the 25 basis points of linked quarter NIM attributed to the third quarter 2024 catch-up interest payment.

    Fourth quarter 2024 net interest income was $10.8 million, an increase of 18.1% from the fourth quarter of 2023. An increase in interest and dividend income of $1.2 million was primarily attributed to average yield increases of 33 basis points on loans, 4 basis points on taxable investment securities, and 404 basis points on fed funds sold and interest-earning deposits. The corresponding increase in loan interest income, taxable investment securities, and federal funds sold and interest-earning deposits was $1.1 million, $152,000, and $13,000, respectively. A decrease in interest expense of $463,000 was attributed to changes in the Bank’s deposit mix, repricing of deposits in a lower rate environment, and reductions in borrowings expense.

    Net interest margin was 3.15% in the fourth quarter of 2024 compared to 2.74% in the same period the year prior. The increase of 41 basis points was driven by reductions in borrowing and funding costs.

    Noninterest Income
    Noninterest income totaled $4.9 million in the fourth quarter of 2024, including the $3.2 million pre-tax gain on the insurance agency sale, which represents the gross amount that is required to be 100% consolidated within the Company’s financial statements, despite Pathfinder’s 51% interest in the business sold in October 2024. Noninterest income growth from the third quarter of 2024 was $3.2 million, or $30,000 when excluding the agency sale gain. Noninterest income growth from the fourth quarter of 2023 was $3.6 million, or $419,000 when excluding the agency sale gain.

    The insurance agency sold in October contributed $49,000 in revenue to noninterest income in the fourth quarter of 2024, $367,000 in the third quarter of 2024 and $303,000 in the fourth quarter of 2023.

    Compared to the linked quarter, fourth quarter 2024 noninterest income also included increases of $16,000 in loan servicing fees and $12,000 in service charges on deposit accounts, a decrease of $194,000 in earnings and gain on bank owned life insurance (“BOLI”) after recording a $175,000 third quarter net death benefit on BOLI, and a $36,000 decrease in debit card interchange fees. Noninterest income growth from the linked quarter also reflected an increase of $438,000 in net realized gains on sales and redemptions of investment securities and $104,000 in net realized gains on sales of marketable equity securities, as well as a decrease of $51,000 in gains on sales of loans and foreclosed real estate.

    Compared to the year-ago period, fourth quarter 2024 noninterest income also included increases of $103,000 in interchange fees, $68,000 in service charges on deposit accounts, $26,000 in loan servicing fees, and $3,000 in earnings and gain on BOLI. Noninterest income growth from the year-ago quarter also reflected increases of $248,000 increase in net realized losses on sales and redemptions of investment securities, $213,000 in net realized gains on sales of marketable equity securities, and $41,000 in gains on sales of loans and foreclosed real estate.

    Noninterest Expense
    Noninterest expense totaled $8.5 million in the fourth quarter of 2024, decreasing $1.7 million from the linked quarter and increasing $1.5 million from the year-ago period.

    Fourth quarter 2024 noninterest expense included $456,000 associated with the Company’s insurance agency sale in October 2024, including $155,000 in transaction-related items. The insurance agency incurred $308,000 of noninterest expense in the third quarter of 2024 and $216,000 in the fourth quarter of 2023.

    Third quarter 2024 noninterest expense included $1.6 million in transaction-related expenses for Pathfinder’s acquisition of the East Syracuse branch acquisition in July 2024.

    Salaries and benefits were $4.1 million in the fourth quarter of 2024, decreasing $839,000 from the linked quarter and increasing $446,000 from the year-ago period. The decrease from the linked quarter reflected elevated non-exempt-employee hours for projects related to the successful third quarter closing and integration of the East Syracuse branch acquisition, as well as some personnel vacancies that were open in the fourth quarter. The increase from the fourth quarter of 2023 was primarily attributed to increased headcount and lower salary deferrals than in the prior year period.

    Building and occupancy was $1.3 million in the fourth quarter of 2024, increasing $117,000 and $390,000 from the linked and year-ago quarters, respectively. These increases were due to ongoing facilities-related costs of approximately $322,000 associated with operating the branch acquired in July 2024.

    Professional and other services expense was $608,000 in the fourth quarter of 2024, decreasing $1.2 million from the linked quarter and increasing $120,000 from the year-ago period. The decrease from the third quarter of 2024 was primarily attributed to one-time costs associated with the East Syracuse branch acquisition. The increase from the fourth quarter of 2023 was primarily attributed to a $136,000 increase in technology project implementation services and other outsourced consulting services.

    Annualized noninterest expense, including transaction-related costs, represented 2.33% of average assets in the fourth quarter of 2024, compared to 2.75% and 2.01% in the linked and year-ago periods. The efficiency ratio, including transaction-related costs, was 69.42% in the fourth quarter of 2024, compared to 75.28% and 67.25% in the linked and year-ago periods. The efficiency ratio, which is not a financial metric under GAAP, is a measure that the Company believes is helpful to understanding its level of non-interest expense as a percentage of total revenue.

    Statement of Financial Condition
    As of December 31, 2024, the Company’s statement of financial condition reflects total assets of $1.47 billion, compared to $1.48 billion and $1.47 billion recorded on September 30, 2024 and December 31, 2023, respectively.

    Loans totaled $919.0 million on December 31, 2024, decreasing 0.3% during the fourth quarter and increasing 2.4% from one year prior. Consumer and residential loans totaled $380.9 million, decreasing 2.0% during the fourth quarter and increasing 1.9% from one year prior. Commercial loans totaled $539.7 million, increasing 1.0% during the fourth quarter and 3.0% from one year prior.

    With respect to liabilities, deposits totaled $1.20 billion on December 31, 2024, increasing 0.7% during the fourth quarter and 7.5% from one year prior. The Company also utilized its lower cost liquidity to reduce total borrowings, which were $88.1 million on December 31, 2024 as compared to $100.1 million on September 30, 2024 and $175.6 million on December 31, 2023.

    Shareholders’ equity totaled $121.9 million on December 31, 2024, increasing $1.6 million or 1.3% in the fourth quarter and increasing $2.4 million or 2.0% from one year prior. The fourth quarter 2024 increase primarily reflects a $4.5 million increase in retained earnings, partially offset by a $2.4 million increase in accumulated other comprehensive loss (“AOCL”) and a $481,000 decrease in additional paid in capital. The full-year 2024 increase in shareholders’ equity primarily reflects a $2.1 increase in retained earnings and a $461,000 decrease in AOCL, partially offset by a $364,000 decrease in additional paid in capital.  The noncontrolling interest included in equity on the Statements of Financial Condition was eliminated with the October 2024 sale of the 51% ownership interest in the Company’s insurance agency.

    Asset Quality
    Pathfinder’s asset quality metrics reflect ongoing efforts the Bank is undertaking as part of its commitment to continuously improve its credit risk management approach.

    Nonperforming loans were $22.1 million or 2.40% of total loans on December 31, 2024, $16.2 million or 1.75% of total loans on September 30, 2024 and $17.2 million or 1.92% of total loans on December 31, 2023.

    Net charge offs (“NCOs”) after recoveries were $1.0 million or an annualized 0.44% of average loans in the fourth quarter of 2024, with gross charge offs for consumer loans, purchased loan pools, and one commercial loan offsetting recoveries in each of these categories. NCOs were $8.7 million or an annualized 3.82% of average loans in the linked quarter, following the loan portfolio review completed in September, and $108,000 or 0.05% in the prior year period.

    Provision for credit loss expense was $988,000 in the fourth quarter of 2024, reflecting NCOs in the period and qualitative factors in the Company’s reserve model. Third quarter of 2024 provision was $9.0 million, primarily to replenish commercial loan reserves and adjust the lifetime loss estimate for solar purchased loan pool positions following the loan portfolio review completed in September. Fourth quarter 2023 provision was $265,000.

    The Company believes it is sufficiently collateralized and reserved, with an Allowance for Credit Losses (“ACL”) of $17.2 million on December 31, 2024, compared to $17.3 million on September 30, 2024 and $16.0 million on December 31, 2023. As a percentage of total loans, ACL represented 1.88% on December 31, 2024, 1.87% on September 30, 2024, and 1.78% on December 31, 2023.

    Liquidity
    The Company has diligently ensured a strong liquidity profile as of December 31, 2024 to meet its ongoing financial obligations. The Bank’s liquidity management, as evaluated by its cash reserves and operational cash flows from loan repayments and investment securities, remains robust and is effectively managed by the institution’s leadership.

    The Bank’s analysis indicates that expected cash inflows from loans and investment securities are more than sufficient to meet all projected financial obligations. Total deposits were $1.20 billion on December 31, 2024, $1.20 billion on September 30, 2024, and $1.12 billion on December 31, 2023. Core deposits represented 76.87% of total deposits on December 31, 2024, 77.45% on September 30, 2024, and 69.83% on December 31, 2023. The Bank’s continues to implement strategic initiatives to enhance its core deposit franchise, including targeted marketing campaigns and customer engagement programs aimed at deepening banking relationships and enhancing deposit stability.

    At the end of the current quarter, Pathfinder Bancorp had an available additional funding capacity of $113.8 million with the Federal Home Loan Bank of New York, which complements its liquidity reserves. Moreover, the Bank maintains additional unused credit lines totaling $43.3 million, which provide a buffer for additional funding needs. These facilities, including access to the Federal Reserve’s Discount Window, are part of a comprehensive liquidity strategy that ensures flexibility and readiness to respond to any funding requirements.

    Cash Dividend Declared
    On December 23, 2024, Pathfinder’s Board of Directors declared a cash dividend of $0.10 per share for holders of both voting common and non-voting common stock.

    In addition, this dividend also extends to the notional shares of the Company’s warrants. Shareholders registered by January 17, 2025 will be eligible for the dividend, which is scheduled for disbursement on February 7, 2025. This distribution aligns with Pathfinder Bancorp’s philosophy of consistent and reliable delivery of shareholder value.

    Evaluating the Company’s market performance, the closing stock price as of December 31, 2024 stood at $17.50 per share. This positions the dividend yield at an attractive 2.29%.

    About Pathfinder Bancorp, Inc.

    Pathfinder Bancorp, Inc. (NASDAQ: PBHC) is the commercial bank holding company for Pathfinder Bank, which serves Central New York customers throughout Oswego, Syracuse, and their neighboring communities. Strategically located branches averaging over $100 million in deposits per location, as well as diversified consumer, mortgage and commercial loan portfolios, reflect the state-chartered Bank’s commitment to in-market relationships and local customer service. The Company also offers investment services to individuals and businesses. At December 31, 2024, the Oswego-headquartered Company had assets of $1.47 billion, loans of $919.0 million, and deposits of $1.20 billion. More information is available at pathfinderbank.com and ir.pathfinderbank.com.

    Forward-Looking Statements
    Certain statements contained herein are “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements are generally identified by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions, or future or conditional verbs, such as “will,” “would,” “should,” “could,” or “may.” These forward-looking statements are based on current beliefs and expectations of the Company’s and the Bank’s management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the Company’s and the Bank’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to: risks related to the real estate and economic environment, particularly in the market areas in which the Company and the Bank operate; fiscal and monetary policies of the U.S. Government; inflation; changes in government regulations affecting financial institutions, including regulatory compliance costs and capital requirements; fluctuations in the adequacy of the allowance for credit losses; decreases in deposit levels necessitating increased borrowing to fund loans and investments; operational risks including, but not limited to, cybersecurity, fraud and natural disasters; the risk that the Company may not be successful in the implementation of its business strategy; changes in prevailing interest rates; credit risk management; asset-liability management; and other risks described in the Company’s filings with the Securities and Exchange Commission, which are available at the SEC’s website, www.sec.gov.

    This release contains non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of a registrant’s historical or future financial performance, financial position, or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet, or statement of cash flows (or equivalent statements) of the registrant; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirements of Regulation G, the Company has provided reconciliations within the release of the non-GAAP financial measures to the most directly comparable GAAP financial.

    Investor/Media Contacts
    James A. Dowd, President, CEO
    Justin K. Bigham, Senior Vice President, CFO
    Telephone: (315) 343-0057

    PATHFINDER BANCORP, INC.                              
    Selected Financial Information (Unaudited)                              
    (Amounts in thousands, except per share amounts)                              
                                   
        2024     2023  
    SELECTED BALANCE SHEET DATA:   December 31,     September 30,     June 30,     March 31,     December 31,  
    ASSETS:                              
    Cash and due from banks   $ 13,963     $ 18,923     $ 12,022     $ 13,565     $ 12,338  
    Interest-earning deposits     17,609       16,401       19,797       15,658       36,394  
    Total cash and cash equivalents     31,572       35,324       31,819       29,223       48,732  
    Available-for-sale securities, at fair value     269,331       271,977       274,977       279,012       258,716  
    Held-to-maturity securities, at amortized cost     158,683       161,385       166,271       172,648       179,286  
    Marketable equity securities, at fair value     4,076       3,872       3,793       3,342       3,206  
    Federal Home Loan Bank stock, at cost     4,590       5,401       8,702       7,031       8,748  
    Loans     918,986       921,660       888,263       891,531       897,207  
    Less: Allowance for credit losses     17,243       17,274       16,892       16,655       15,975  
    Loans receivable, net     901,743       904,386       871,371       874,876       881,232  
    Premises and equipment, net     19,009       18,989       18,878       18,332       18,441  
    Assets held-for-sale     –       –       3,042       3,042       3,042  
    Operating lease right-of-use assets     1,391       1,425       1,459       1,493       1,526  
    Finance lease right-of-use assets     16,676       16,873       4,004       4,038       4,073  
    Accrued interest receivable     6,881       6,806       7,076       7,170       7,286  
    Foreclosed real estate     –       –       60       82       151  
    Intangible assets, net     5,989       6,217       76       80       85  
    Goodwill     5,056       5,752       4,536       4,536       4,536  
    Bank owned life insurance     24,727       24,560       24,967       24,799       24,641  
    Other assets     25,150       20,159       25,180       23,968       22,097  
    Total assets   $ 1,474,874     $ 1,483,126     $ 1,446,211     $ 1,453,672     $ 1,465,798  
                                   
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                              
    Deposits:                              
    Interest-bearing deposits   $ 990,674     $ 986,103     $ 932,132     $ 969,692     $ 949,898  
    Noninterest-bearing deposits     213,719       210,110       169,145       176,421       170,169  
    Total deposits     1,204,393       1,196,213       1,101,277       1,146,113       1,120,067  
    Short-term borrowings     61,000       60,315       127,577       91,577       125,680  
    Long-term borrowings     27,068       39,769       45,869       45,869       49,919  
    Subordinated debt     30,107       30,057       30,008       29,961       29,914  
    Accrued interest payable     234       236       2,092       1,963       2,245  
    Operating lease liabilities     1,591       1,621       1,652       1,682       1,711  
    Finance lease liabilities     16,745       16,829       4,359       4,370       4,381  
    Other liabilities     11,876       16,986       9,203       9,505       11,625  
    Total liabilities     1,353,014       1,362,026       1,322,037       1,331,040       1,345,542  
    Shareholders’ equity:                              
    Voting common stock shares issued and outstanding     4,742,841       4,719,788       4,719,788       4,719,788       4,719,288  
    Voting common stock     47       47       47       47       47  
    Non-Voting common stock     14       14       14       14       14  
    Additional paid in capital     52,750       53,231       53,182       53,151       53,114  
    Retained earnings     78,193       73,670       78,936       77,558       76,060  
    Accumulated other comprehensive loss     (9,144 )     (6,716 )     (8,786 )     (8,862 )     (9,605 )
    Unearned ESOP shares     –       –       (45 )     (90 )     (135 )
    Total Pathfinder Bancorp, Inc. shareholders’ equity     121,860       120,246       123,348       121,818       119,495  
    Noncontrolling interest     –       854       826       814       761  
    Total equity     121,860       121,100       124,174       122,632       120,256  
    Total liabilities and shareholders’ equity   $ 1,474,874     $ 1,483,126     $ 1,446,211     $ 1,453,672     $ 1,465,798  
                                             

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    SELECTED INCOME STATEMENT DATA:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Interest and dividend income:                                          
    Loans, including fees   $ 52,705     $ 47,348     $ 13,523     $ 14,425     $ 12,489     $ 12,268     $ 12,429  
    Debt securities:                                          
    Taxable     22,319       17,500       5,312       5,664       5,736       5,607       5,092  
    Tax-exempt     1,920       1,947       445       469       498       508       506  
    Dividends     620       573       164       149       178       129       232  
    Federal funds sold and interest-earning deposits     793       295       82       492       121       98       69  
    Total interest and dividend income     78,357       67,663       19,526       21,199       19,022       18,610       18,328  
    Interest expense:                                          
    Interest on deposits     30,050       23,265       7,380       7,633       7,626       7,411       7,380  
    Interest on short-term borrowings     4,176       2,688       700       1,136       1,226       1,114       1,064  
    Interest on long-term borrowings     733       850       136       202       201       194       231  
    Interest on subordinated debt     1,966       1,941       490       496       489       491       494  
    Total interest expense     36,925       28,744       8,706       9,467       9,542       9,210       9,169  
    Net interest income     41,432       38,919       10,820       11,732       9,480       9,400       9,159  
    Provision for (benefit from) credit losses:                                          
    Loans     11,106       2,991       988       9,104       304       710       316  
    Held-to-maturity securities     (94 )     (98 )     (4 )     (31 )     (74 )     15       (74 )
    Unfunded commitments     (39 )     37       4       (104 )     60       1       23  
    Total provision for credit losses     10,973       2,930       988       8,969       290       726       265  
    Net interest income after provision for credit losses     30,459       35,989       9,832       2,763       9,190       8,674       8,894  
    Noninterest income:                                          
    Service charges on deposit accounts     1,436       1,249       405       392       330       309       336  
    Earnings and gain on bank owned life insurance     854       630       169       361       167       157       164  
    Loan servicing fees     375       307       96       79       112       88       69  
    Net realized (losses) gains on sales and redemptions of investment securities     (71 )     62       249       (188 )     16       (148 )     2  
    Gain on asset sale 1 & 2     3,169       –       3,169       –       –       –       –  
    Net realized gains (losses) on sales of marketable equity securities     197       (255 )     166       62       (139 )     108       (47 )
    Gains on sales of loans and foreclosed real estate     187       181       39       90       40       18       (2 )
    Loss on sale of premises and equipment     (13 )     –       –       (36 )     –       –       –  
    Debit card interchange fees     875       616       265       300       191       119       161  
    Insurance agency revenue 1     1,073       1,304       49       367       260       397       303  
    Other charges, commissions & fees     1,479       1,096       299       280       234       689       332  
    Total noninterest income     9,561       5,190       4,906       1,707       1,211       1,737       1,318  
    Noninterest expense:                                          
    Salaries and employee benefits     17,810       15,920       4,123       4,959       4,399       4,329       3,677  
    Building and occupancy     4,118       3,563       1,254       1,134       914       816       864  
    Data processing     2,471       2,018       721       672       550       528       499  
    Professional and other services     3,686       2,019       608       1,820       696       562       488  
    Advertising     604       671       218       165       116       105       155  
    FDIC assessments     916       885       231       228       228       229       222  
    Audits and exams     539       735       123       123       123       170       259  
    Insurance agency expense 1     1,281       1,033       456       308       232       285       216  
    Community service activities     130       200       19       20       39       52       49  
    Foreclosed real estate expenses     102       111       20       27       30       25       35  
    Other expenses     2,760       2,240       771       803       581       605       580  
    Total noninterest expense     34,417       29,395       8,544       10,259       7,908       7,706       7,044  
    Income (loss) before provision for income taxes     5,603       11,784       6,194       (5,789 )     2,493       2,705       3,168  
    Provision (benefit) for income taxes     398       2,362       558       (1,173 )     481       532       590  
    Net income (loss) attributable to noncontrolling interest and Pathfinder Bancorp, Inc.     5,205       9,422       5,636       (4,616 )     2,012       2,173       2,578  
    Net income attributable to noncontrolling interest 1     1,445       129       1,352       28       12       53       42  
    Net income (loss) attributable to Pathfinder Bancorp Inc.   $ 3,760     $ 9,293     $ 4,284     $ (4,644 )   $ 2,000     $ 2,120     $ 2,536  
    Voting Earnings per common share – basic and diluted   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Series A Non-Voting Earnings per common share- basic and diluted   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Dividends per common share (Voting and Series A Non-Voting)   $ 0.40     $ 0.36     $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.09  

    1 Although the Company owned 51% of its membership interest in FitzGibbons Agency, LLC (“Agency”) the Company is required to consolidate 100% of the Agency within the consolidated financial statements.
    2 The $3,169,000 consolidated gain on asset sale equals $1,616,000 associated with the Company’s 51% interest in the Agency plus $1,553,000 associated with the 49% noncontrolling interest.

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    FINANCIAL HIGHLIGHTS:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Selected Ratios:                                          
    Return on average assets     0.26 %     0.67 %     1.17 %     -1.25 %     0.56 %     0.59 %     0.72 %
    Return on average common equity     3.06 %     8.09 %     14.09 %     -14.79 %     6.49 %     7.01 %     8.72 %
    Return on average equity     3.06 %     8.09 %     14.09 %     -14.79 %     6.49 %     7.01 %     8.72 %
    Return on average tangible common equity 1     3.23 %     8.43 %     15.54 %     -15.28 %     6.78 %     7.32 %     9.01 %
    Net interest margin     3.01 %     2.95 %     3.15 %     3.34 %     2.78 %     2.75 %     2.74 %
    Loans / deposits     76.30 %     80.10 %     76.30 %     77.05 %     80.66 %     77.79 %     80.10 %
    Core deposits/deposits 2     76.87 %     69.83 %     76.87 %     77.45 %     67.98 %     69.17 %     69.83 %
    Annualized non-interest expense / average assets     3.17 %     2.11 %     2.33 %     2.75 %     2.19 %     2.16 %     2.01 %
    Commercial real estate / risk-based capital 3     186.73 %     162.21 %     186.73 %     189.47 %     169.73 %     163.93 %     162.21 %
    Efficiency ratio 1     71.86 %     66.74 %     69.42 %     75.28 %     74.08 %     68.29 %     67.25 %
                                               
    Other Selected Data:                                          
    Average yield on loans     5.83 %     5.26 %     5.87 %     6.31 %     5.64 %     5.48 %     5.55 %
    Average cost of interest bearing deposits     3.08 %     2.45 %     2.94 %     3.11 %     3.21 %     3.07 %     3.10 %
    Average cost of total deposits, including non-interest bearing     2.59 %     2.07 %     2.44 %     2.59 %     2.72 %     2.61 %     2.63 %
    Deposits/branch 4   $ 100,366     $ 101,824     $ 100,366     $ 99,684     $ 100,116     $ 104,192     $ 101,824  
    Pre-tax, pre-provision net income 1   $ 13,478     $ 14,652     $ 3,764     $ 3,368     $ 2,767     $ 3,579     $ 3,431  
    Total revenue 1   $ 47,895     $ 44,047     $ 12,308     $ 13,627     $ 10,675     $ 11,285     $ 10,475  
                                               
    Share and Per Share Data:                                          
    Cash dividends per share   $ 0.40     $ 0.36     $ 0.10     $ 0.10     $ 0.10     $ 0.10     $ 0.09  
    Book value per common share   $ 19.90     $ 19.59     $ 19.90     $ 19.71     $ 20.22     $ 19.97     $ 19.59  
    Tangible book value per common share 1   $ 18.10     $ 18.83     $ 18.10     $ 17.75     $ 19.46     $ 19.21     $ 18.83  
    Basic and diluted weighted average shares outstanding – Voting     4,714       4,653       4,732       4,714       4,708       4,701       4,693  
    Basic and diluted earnings per share – Voting 5   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Basic and diluted weighted average shares outstanding – Series A Non-Voting     1,380       1,380       1,380       1,380       1,380       1,380       1,380  
    Basic and diluted earnings per share – Series A Non-Voting 5   $ 0.60     $ 1.51     $ 0.69     $ (0.75 )   $ 0.32     $ 0.34     $ 0.41  
    Common shares outstanding at period end     6,123       6,100       6,123       6,100       6,100       6,100       6,100  
                                               
    Pathfinder Bancorp, Inc. Capital Ratios:                                          
    Company tangible common equity to tangible assets 1     7.57 %     7.86 %     7.57 %     7.36 %     8.24 %     8.09 %     7.86 %
    Company Total Core Capital (to Risk-Weighted Assets)     15.70 %     16.17 %     15.70 %     15.55 %     16.19 %     16.23 %     16.17 %
    Company Tier 1 Capital (to Risk-Weighted Assets)     12.04 %     12.30 %     12.04 %     11.84 %     12.31 %     12.33 %     12.30 %
    Company Tier 1 Common Equity (to Risk-Weighted Assets)     11.55 %     11.81 %     11.55 %     11.33 %     11.83 %     11.85 %     11.81 %
    Company Tier 1 Capital (to Assets)     8.69 %     9.35 %     8.69 %     8.29 %     9.16 %     9.16 %     9.35 %
                                               
    Pathfinder Bank Capital Ratios:                                          
    Bank Total Core Capital (to Risk-Weighted Assets)     14.70 %     15.05 %     14.70 %     14.52 %     16.04 %     15.65 %     15.05 %
    Bank Tier 1 Capital (to Risk-Weighted Assets)     13.44 %     13.80 %     13.44 %     13.26 %     14.79 %     14.39 %     13.80 %
    Bank Tier 1 Common Equity (to Risk-Weighted Assets)     13.44 %     13.80 %     13.44 %     13.26 %     14.79 %     14.39 %     13.80 %
    Bank Tier 1 Capital (to Assets)     9.69 %     10.11 %     9.69 %     9.13 %     10.30 %     10.13 %     10.11 %

    1 Non-GAAP financial metrics. See non-GAAP reconciliation included herein for the most directly comparable GAAP measures.
    2 Non-brokered deposits excluding certificates of deposit of $250,000 or more.
    3 Construction and development, multifamily, and non-owner occupied CRE loans as a percentage of Pathfinder Bank total capital.
    4 Includes 11 full-service branches and one motor bank for December 31 and September 30, 2024, respectively. Includes 10 full-service branches and one motor bank for all periods prior.
    5 Basic and diluted earnings per share are calculated based upon the two-class method. Weighted average shares outstanding do not include unallocated ESOP shares.

    The above information is preliminary and based on the Company’s data available at the time of presentation.
        Years Ended December 31,     2024     2023  
    ASSET QUALITY:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Total loan charge-offs   $ 10,183     $ 4,221     $ 1,191     $ 8,812     $ 112     $ 68     $ 211  
    Total recoveries     345       355       171       90       46       38       103  
    Net loan charge-offs     9,838       3,866       1,020       8,722       66       30       108  
    Allowance for credit losses at period end     17,243       15,975       17,243       17,274       16,892       16,655       15,975  
    Nonperforming loans at period end     22,084       17,227       22,084       16,170       24,490       19,652       17,227  
    Nonperforming assets at period end   $ 22,084     $ 17,378     $ 22,084     $ 16,170     $ 24,550     $ 19,734     $ 17,378  
    Annualized net loan charge-offs to average loans     1.09 %     0.43 %     0.44 %     3.82 %     0.03 %     0.01 %     0.05 %
    Allowance for credit losses to period end loans     1.88 %     1.78 %     1.88 %     1.87 %     1.90 %     1.87 %     1.78 %
    Allowance for credit losses to nonperforming loans     78.08 %     92.73 %     78.08 %     106.83 %     68.98 %     84.75 %     92.73 %
    Nonperforming loans to period end loans     2.40 %     1.92 %     2.40 %     1.75 %     2.76 %     2.20 %     1.92 %
    Nonperforming assets to period end assets     1.50 %     1.19 %     1.50 %     1.09 %     1.70 %     1.36 %     1.19 %
                                                             
        2024       2023  
    LOAN COMPOSITION:   December 31,     September 30,     June 30,     March 31,     December 31,  
    1-4 family first-lien residential mortgages   $ 251,373     $ 255,235     $ 250,106     $ 252,026     $ 257,604  
    Residential construction     4,864       4,077       309       1,689       1,355  
    Commercial real estate     377,619       378,805       370,361       363,467       358,707  
    Commercial lines of credit     67,602       64,672       62,711       67,416       72,069  
    Other commercial and industrial     89,800       88,247       90,813       91,178       89,803  
    Paycheck protection program loans     113       125       136       147       158  
    Tax exempt commercial loans     4,544       2,658       3,228       3,374       3,430  
    Home equity and junior liens     51,948       52,709       35,821       35,723       34,858  
    Other consumer     72,710       76,703       75,195       77,106       79,797  
    Subtotal loans     920,573       923,231       888,680       892,126       897,781  
    Deferred loan fees     (1,587 )     (1,571 )     (417 )     (595 )     (574 )
    Total loans   $ 918,986     $ 921,660     $ 888,263     $ 891,531     $ 897,207  
                                             
        2024     2023  
    DEPOSIT COMPOSITION:   December 31,     September 30,     June 30,     March 31,     December 31,  
    Savings accounts   $ 128,752     $ 129,053     $ 106,048     $ 111,465     $ 113,543  
    Time accounts     360,586       352,729       368,262       378,103       377,570  
    Time accounts in excess of $250,000     142,473       140,181       117,021       114,514       95,272  
    Money management accounts     11,583       11,520       12,154       11,676       12,364  
    MMDA accounts     239,016       250,007       193,915       215,101       224,707  
    Demand deposit interest-bearing     101,080       97,344       128,168       134,196       119,321  
    Demand deposit noninterest-bearing     213,719       210,110       169,145       176,434       170,169  
    Mortgage escrow funds     7,184       5,269       6,564       4,624       7,121  
    Total deposits   $ 1,204,393     $ 1,196,213     $ 1,101,277     $ 1,146,113     $ 1,120,067  
                                             

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    SELECTED AVERAGE BALANCES:   2024     2023     Q4     Q3     Q4  
    Interest-earning assets:                              
    Loans   $ 903,941     $ 899,605     $ 920,855     $ 914,467     $ 896,439  
    Taxable investment securities     423,475       379,600       412,048       415,751       403,411  
    Tax-exempt investment securities     30,861       30,318       34,918       30,382       27,941  
    Fed funds sold and interest-earning deposits     16,379       11,730       5,115       42,897       11,630  
    Total interest-earning assets     1,374,656       1,321,253       1,372,936       1,403,497       1,339,421  
    Noninterest-earning assets:                              
    Other assets     102,582       100,319       112,654       103,856       102,940  
    Allowance for credit losses     (16,670 )     (17,870 )     (17,145 )     (16,537 )     (17,359 )
    Net unrealized losses on available-for-sale securities     (9,769 )     (13,600 )     (8,534 )     (9,161 )     (15,653 )
    Total assets   $ 1,450,799     $ 1,390,102     $ 1,459,911     $ 1,481,655     $ 1,409,349  
    Interest-bearing liabilities:                              
    NOW accounts   $ 101,336     $ 92,223     $ 102,862     $ 102,868     $ 87,210  
    Money management accounts     11,679       14,116       11,371       11,828       12,518  
    MMDA accounts     227,597       239,182       257,429       227,247       231,957  
    Savings and club accounts     118,965       124,617       128,169       127,262       115,984  
    Time deposits     517,352       480,867       504,008       514,049       505,554  
    Subordinated loans     30,002       29,815       30,076       30,025       29,883  
    Borrowings     114,471       105,471       68,391       122,129       124,780  
    Total interest-bearing liabilities     1,121,402       1,086,291       1,102,306       1,135,408       1,107,886  
    Noninterest-bearing liabilities:                              
    Demand deposits     184,572       172,950       206,521       195,765       169,340  
    Other liabilities     21,923       16,037       29,491       24,856       15,858  
    Total liabilities     1,327,897       1,275,278       1,338,318       1,356,029       1,293,084  
    Shareholders’ equity     122,902       114,824       121,593       125,626       116,265  
    Total liabilities & shareholders’ equity   $ 1,450,799     $ 1,390,102     $ 1,459,911     $ 1,481,655     $ 1,409,349  
                                             
        Years Ended December 31,     2024     2023  
    SELECTED AVERAGE YIELDS:   2024     2023     Q4     Q3     Q4  
    Interest-earning assets:                              
    Loans     5.83 %     5.26 %     5.87 %     6.31 %     5.55 %
    Taxable investment securities     5.42 %     4.76 %     5.32 %     5.59 %     5.28 %
    Tax-exempt investment securities     6.22 %     6.42 %     5.10 %     6.17 %     7.24 %
    Fed funds sold and interest-earning deposits     4.84 %     2.51 %     6.41 %     4.59 %     2.37 %
    Total interest-earning assets     5.70 %     5.12 %     5.69 %     6.04 %     5.47 %
    Interest-bearing liabilities:                              
    NOW accounts     1.10 %     0.58 %     1.19 %     1.09 %     1.02 %
    Money management accounts     0.11 %     0.11 %     0.11 %     0.10 %     0.10 %
    MMDA accounts     3.52 %     2.80 %     3.23 %     3.54 %     3.72 %
    Savings and club accounts     0.26 %     0.22 %     0.26 %     0.25 %     0.26 %
    Time deposits     3.98 %     3.27 %     3.90 %     4.09 %     3.89 %
    Subordinated loans     6.55 %     6.51 %     6.52 %     6.61 %     6.61 %
    Borrowings     4.29 %     3.35 %     4.89 %     4.38 %     4.15 %
    Total interest-bearing liabilities     3.29 %     2.65 %     3.16 %     3.34 %     3.31 %
    Net interest rate spread     2.41 %     2.47 %     2.53 %     2.70 %     2.16 %
    Net interest margin     3.01 %     2.95 %     3.15 %     3.34 %     2.74 %
    Ratio of average interest-earning assets to average interest-bearing liabilities     122.58 %     121.63 %     124.55 %     123.61 %     120.90 %
                                             

    The above information is preliminary and based on the Company’s data available at the time of presentation.

        Years Ended December 31,     2024     2023  
    NON-GAAP RECONCILIATIONS:   2024     2023     Q4     Q3     Q2     Q1     Q4  
    Tangible book value per common share:                                          
    Total equity               $ 121,860     $ 120,246     $ 123,348     $ 121,818     $ 119,495  
    Intangible assets                 (11,045 )     (11,969 )     (4,612 )     (4,616 )     (4,621 )
    Tangible common equity (non-GAAP)                 110,815       108,277       118,736       117,202       114,874  
    Common shares outstanding                 6,123       6,100       6,100       6,100       6,100  
    Tangible book value per common share (non-GAAP)               $ 18.10     $ 17.75     $ 19.46     $ 19.21     $ 18.83  
    Tangible common equity to tangible assets:                                          
    Tangible common equity (non-GAAP)               $ 110,815     $ 108,277     $ 118,736     $ 117,202     $ 114,874  
    Tangible assets                 1,463,829       1,471,157       1,441,599       1,449,056       1,461,177  
    Tangible common equity to tangible assets ratio (non-GAAP)                 7.57 %     7.36 %     8.24 %     8.09 %     7.86 %
    Return on average tangible common equity:                                          
    Average shareholders’ equity   $ 122,902     $ 114,824     $ 121,593     $ 125,626     $ 123,211     $ 121,031     $ 116,265  
    Average intangible assets     6,468       4,629       11,907       4,691       4,614       4,619       4,623  
    Average tangible equity (non-GAAP)     116,434       110,195       109,686       120,935       118,597       116,412       111,642  
    Net income (loss)     3,760       9,293       4,284       (4,644 )     2,000       2,120       2,536  
    Net income (loss), annualized   $ 3,760     $ 9,293     $ 17,043     $ (18,475 )   $ 8,044     $ 8,527     $ 10,061  
    Return on average tangible common equity (non-GAAP) 1     3.23 %     8.43 %     15.54 %     -15.28 %     6.78 %     7.32 %     9.01 %
    Revenue, pre-tax, pre-provision net income, and efficiency ratio:                                          
    Net interest income   $ 41,432     $ 38,919     $ 10,820     $ 11,732     $ 9,480     $ 9,400     $ 9,159  
    Total noninterest income     9,561       5,190       4,906       1,707       1,211       1,737       1,318  
    Net realized (gains) losses on sales and redemptions of investment securities     (71 )     62       249       (188 )     16       (148 )     2  
    Gain on asset sale     3,169       –       3,169       –       –       –       –  
    Revenue (non-GAAP) 2     47,895       44,047       12,308       13,627       10,675       11,285       10,475  
    Total non-interest expense     34,417       29,395       8,544       10,259       7,908       7,706       7,044  
    Pre-tax, pre-provision net income (non-GAAP) 3   $ 13,478     $ 14,652     $ 3,764     $ 3,368     $ 2,767     $ 3,579     $ 3,431  
    Efficiency ratio (non-GAAP) 4     71.86 %     66.74 %     69.42 %     75.28 %     74.08 %     68.29 %     67.25 %

    1 Return on average tangible common equity equals annualized net income (loss) divided by average tangible equity
    2 Revenue equals net interest income plus total noninterest income less net realized gains or losses on sales and redemptions of investment securities and gain on sale of insurance agency
    3 Pre-tax, pre-provision net income equals revenue less total non-interest expense
    4 Efficiency ratio equals noninterest expense divided by revenue

    The above information is preliminary and based on the Company’s data available at the time of presentation.

    The MIL Network –

  • MIL-OSI: Apollo to Present at the 2025 UBS Financial Services Conference

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Jan. 31, 2025 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced that Martin Kelly, Chief Financial Officer, will participate in a fireside chat at the UBS Financial Services Conference on Monday, February 10, 2025 at 9:40 am ET.

    A live webcast of the event will be available on Apollo’s Investor Relations website at ir.apollo.com. For those unable to join live, a replay will be available shortly after the event.

    About Apollo

    Apollo is a high-growth, global alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade credit to private equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of September 30, 2024, Apollo had approximately $733 billion of assets under management. To learn more, please visit www.apollo.com.

    Contacts

    Noah Gunn
    Global Head of Investor Relations
    Apollo Global Management, Inc.
    (212) 822-0540
    IR@apollo.com

    Joanna Rose
    Global Head of Corporate Communications
    Apollo Global Management, Inc.
    (212) 822-0491
    Communications@apollo.com

    The MIL Network –

  • MIL-OSI: Territorial Bancorp Inc. Announces Fourth Quarter 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    • The Company’s tier one leverage and risk-based capital ratios were 11.68% and 28.96%, respectively, and the Company is considered to be “well-capitalized” at December 31, 2024.
    • Ratio of non-performing assets to total assets of 0.09% at December 31, 2024.

    HONOLULU, Jan. 31, 2025 (GLOBE NEWSWIRE) — Territorial Bancorp Inc. (NASDAQ: TBNK) (the Company), headquartered in Honolulu, Hawaii, the holding company parent of Territorial Savings Bank, reported a net loss of $1.72 million, or $0.20 per diluted share, for the three months ended December 31, 2024. Results reflect $1.53 million of pre-tax merger-related expenses.

    The Board of Directors approved a dividend of $0.01 per share. The dividend is expected to be paid on February 28, 2025, to stockholders of record as of February 14, 2025.

    Hope Bancorp, Inc. Merger Agreement

    As previously announced in a joint news release issued April 29, 2024, Hope Bancorp, Inc. (NASDAQ: HOPE) (Hope Bancorp) and the Company signed a definitive merger agreement. Under the terms of the merger agreement, Company stockholders will receive a fixed exchange ratio of 0.8048 share of Hope Bancorp common stock in exchange for each share of Company common stock they own, in a 100% stock-for-stock transaction valued at approximately $78.60 million, based on the closing price of Hope Bancorp’s common stock on April 26, 2024. The transaction is intended to qualify as a tax-free reorganization for Territorial stockholders.

    Upon completion of the transaction, Hope Bancorp intends to maintain the Territorial franchise in Hawaii and preserve the 100-plus year legacy of the Territorial Savings Bank brand name, culture and commitment to the local communities. The branches will continue to do business under the Territorial Savings Bank brand, as a trade name of Bank of Hope.

    The transaction is subject to regulatory approvals and the satisfaction of other customary closing conditions.

    Interest Income

    Net interest income decreased by $2.21 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Total interest income was $17.91 million for the three months ended December 31, 2024, compared to $17.69 million for the three months ended December 31, 2023. The $217,000 increase in total interest income was primarily due to a $274,000 increase in interest earned on loans and a $245,000 increase in interest earned on other investments. The $274,000 increase in interest income on loans resulted from a 14 basis point increase in the average loan yield, partially offset by a $20.63 million decrease in the average loan balance. The increase in interest income on other investments is primarily due to a $28.86 million increase in the average cash balance with the Federal Reserve Bank of San Francisco (FRB), offset by a 45 basis point decrease in the average interest rate paid on cash balances. The increases in interest income on loans and other investments during the quarter were partially offset by a $302,000 decrease in interest on investment securities, which occurred because of a $40.21 million decrease in the average securities balances.

    Interest Expense and Provision for Credit Losses

    As a result of prolonged increases in short-term interest rates, total interest expense increased by $2.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023. Interest expense on deposits increased by $2.51 million for the three months ended December 31, 2024, primarily due to an increase in interest expense on certificates of deposit (CD) and savings accounts. Interest expense on CDs rose by $1.61 million for the three months ended December 31, 2024, due to a 17 basis point increase in the average cost of CDs and a $132.90 million increase in the average CD balance. Interest expense on savings accounts rose by $892,000 for the three months ended December 31, 2024, due to a 58 basis point increase in the average cost of savings accounts which was partially offset by a $72.23 million decrease in the average balance. The increase in the average cost of CDs and savings accounts occurred as interest rates were raised in response to the increases in market interest rates over that period. The increase in the average balance of CDs and the decrease in the average balance of savings accounts occurred as customers transferred balances from lower rate savings accounts to higher rate CDs. Interest expense on Federal Home Loan Bank (FHLB) borrowings declined by $285,000 for the three months ended December 31, 2024, as the Company paid off $82.00 million in advances from the FHLB during 2024. Interest expense on Federal Reserve Bank (FRB) borrowings rose by $230,000 for the three months ended December 31, 2024, as the Company obtained a $50.00 million advance from the FRB in the fourth quarter of 2023 to enhance the Company’s liquidity and to fund deposit withdrawals. The FRB advances were paid off during the three months ended December 31, 2024.

    The Company had a $51,000 provision for credit losses for the three months ending December 31, 2024, compared to a $144,000 provision for the three months ending December 31, 2023. The decrease in the provision for credit losses was due to a decrease in the mortgage loan portfolio, which was partially offset by an increase in provision related to growth in the consumer loan portfolio.

    Noninterest Income

    Noninterest income increased by $139,000 for the three months ended December 31, 2024 compared to the three months ended December 31, 2023, primarily due to a $129,000 decrease in pension expenses related to an increase in the return on the pension plan’s assets.

    Noninterest Expense

    Noninterest expense increased by $1.42 million for the three months ended December 31, 2024, compared to the three months ended December 31, 2023, primarily due to a $1.34 million increase in general and administrative expenses. General and administrative expenses included $1.53 million of merger-related legal and consulting expenses. Federal Deposit Insurance Corporation (FDIC) premium expense rose by $141,000 for the quarter because of an increase in the FDIC insurance premium rates. The increase in other general and administrative expenses and FDIC premiums was offset by a $170,000 decrease in occupancy expense during the quarter. The decrease was due to a one-time reversal of a previously accrued charge.

    Income Taxes

    Income tax benefit for the three months ended December 31, 2024 was $1.28 million with an effective tax rate of (42.53)% compared to income tax expense of $61,000 with an effective tax rate of 15.44% for the three months ended December 31, 2023. The change from income tax expense to income tax benefit was primarily due to a $3.40 million change in net operating income during the quarter.

    Balance Sheet

    Total assets were $2.17 billion at December 31, 2024 and $2.24 billion at December 31, 2023. Investment securities, including available for sale securities, decreased by $41.74 million to $664.16 million at December 31, 2024 from $705.90 million at December 31, 2023. The decrease in investment securities occurred because of principal repayments on mortgage-backed securities. Loans receivable decreased by $21.89 million to $1.29 billion at December 31, 2024 from $1.31 billion at December 31, 2023. The decrease in loans receivable occurred as loan repayments and sales exceeded new loan originations. Cash and cash equivalents decreased by $3.14 million to $123.52 million at December 31, 2024 from $126.66 million at December 31, 2023 due to repayments of advances from the FHLB, FRB and repurchase agreements, which were offset by increases in deposits and principal repayments on mortgage-backed securities and on loans receivable.

    Deposits increased by $81.06 million from $1.64 billion at December 31, 2023 to $1.72 billion at December 31, 2024. The increase in deposits is primarily due to deposits from state and local governments. The increase in deposits was used with principal repayments on mortgage-backed securities and loans receivable to pay off $82.00 million of maturing FHLB advances, $50.00 million of FRB advances and $10.00 million of repurchase agreements.

    Asset Quality

    Credit quality continues to be extremely important as the Company adheres to its strict underwriting standards. The Company had $1.22 million in delinquent mortgage loans 90 days or more past due at December 31, 2024, compared to $227,000 at December 31, 2023. Non-performing assets totaled $1.93 million at December 31, 2024, compared to $2.26 million at December 31, 2023. The ratio of non-performing assets to total assets was 0.09% at December 31, 2024, compared to 0.10% at December 31, 2023. The allowance for credit losses was $5.11 million at December 31, 2024, compared to $5.12 million at December 31, 2023, representing 0.40% of total loans at December 31, 2024, compared to 0.39% of total loans at December 31, 2023. The ratio of the allowance for credit losses to non-performing loans was 264.56% at December 31, 2024, compared to 226.59% at December 31, 2023.

    About Us

    Territorial Bancorp Inc., headquartered in Honolulu, Hawaii, is the stock holding company for Territorial Savings Bank. Territorial Savings Bank is a state-chartered savings bank which was originally chartered in 1921 by the Territory of Hawaii. Territorial Savings Bank conducts business from its headquarters in Honolulu, Hawaii and has 28 branch offices in the state of Hawaii. For additional information, please visit the Company’s website at: https://www.tsbhawaii.bank.

    Forward-looking statements

    This earnings release contains forward-looking statements, which can be identified by the use of words such as “estimate,” “project,” “believe,” “intend,” “anticipate,” “plan,” “seek,” “expect,” “will,” “may” and words of similar meaning. These forward-looking statements include, but are not limited to:

    • statements of our goals, intentions and expectations;
    • statements regarding our business plans, prospects, growth and operating strategies;
    • statements regarding the asset quality of our loan and investment portfolios; and
    • estimates of our risks and future costs and benefits.

    These forward-looking statements are based on our current beliefs and expectations and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond our control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. We are under no duty to and do not take any obligation to update any forward-looking statements after the date of this earnings release.

    The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements:

    • factors related to the proposed transaction with Hope Bancorp, including the receipt of regulatory approvals, and other customary closing conditions;
    • general economic conditions, either internationally, nationally or in our market areas, that are worse than expected;
    • competition among depository and other financial institutions;
    • inflation and changes in the interest rate environment that reduce our margins or reduce the fair value of financial instruments;
    • adverse changes in the securities markets;
    • changes in laws or government regulations or policies affecting financial institutions, including changes in regulatory fees and capital requirements;
    • changes in monetary or fiscal policies of the U.S. Government, including policies of the U.S. Treasury and the Federal Reserve Board;
    • our ability to enter new markets successfully and capitalize on growth opportunities;
    • our ability to successfully integrate acquired entities, if any;
    • changes in consumer demand, spending, borrowing and savings habits;
    • changes in accounting policies and practices, as may be adopted by the bank regulatory agencies, the Financial Accounting Standards Board, the Securities and Exchange Commission and the Public Company Accounting Oversight Board;
    • changes in our organization, compensation and benefit plans;
    • the timing and amount of revenues that we may recognize;
    • the value and marketability of collateral underlying our loan portfolios;
    • our ability to retain key employees;
    • cyberattacks, computer viruses and other technological risks that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data or disable our systems;
    • technological change that may be more difficult or expensive than expected;
    • the ability of third-party providers to perform their obligations to us;
    • the ability of the U.S. Government to manage federal debt limits;
    • the quality and composition of our investment portfolio;
    • the effect of any pandemic disease, natural disaster, war, act of terrorism, accident or similar action or event;
    • changes in market and other conditions that would affect our ability to repurchase our common stock; and
    • changes in our financial condition or results of operations that reduce capital available to pay dividends.

    Because of these and a wide variety of other uncertainties, our actual future results may be materially different from the results indicated by these forward-looking statements.

    Contact: Walter Ida
    (808) 946-1400

    Territorial Bancorp Inc. and Subsidiaries
    Consolidated Statements of Operations (Unaudited)
    (Dollars in thousands, except per share data)
               
        Three Months Ended   Year Ended
        December 31,   December 31,
        2024
    		   2023   2024   2023
    Interest income:                    
    Loans   $ 12,280     $ 12,006   $ 48,820     $ 47,043  
    Investment securities     4,104       4,406   16,857     17,918  
    Other investments     1,524       1,279   6,628     4,127  
    Total interest income     17,908       17,691   72,305     69,088  
                         
    Interest expense:                    
    Deposits     8,731       6,223   31,389     19,484  
    Advances from the Federal Home Loan Bank     1,569       1,854   6,899     6,636  
    Advances from the Federal Reserve Bank     384       154   2,173     183  
    Securities sold under agreements to repurchase     15       46   152     154  
    Total interest expense     10,699       8,277   40,613     26,457  
                         
    Net interest income     7,209       9,414   31,692     42,631  
    Provision (reversal of provision) for credit losses     51       144   73     (3 )
                         
    Net interest income after provision (reversal of provision) for credit losses     7,158       9,270   31,619     42,634  
                         
    Noninterest income:                    
    Service and other fees     285       305   1,170     1,327  
    Income on bank-owned life insurance     257       227   1,007     855  
    Net gain on sale of loans     —       —   19     10  
    Other     200       71   415     279  
    Total noninterest income     742       603   2,611     2,471  
                         
    Noninterest expense:                    
    Salaries and employee benefits     5,181       5,109   19,787     20,832  
    Occupancy     1,539       1,709   6,858     6,910  
    Equipment     1,320       1,278   5,307     5,156  
    Federal deposit insurance premiums     386       245   1,667     982  
    Other general and administrative expenses     2,474       1,137   7,325     4,388  
    Total noninterest expense     10,900       9,478   40,944     38,268  
                         
    (Loss) Income before income taxes     (3,000 )     395   (6,714 )   6,837  
    Income tax (benefit) expense     (1,276 )     61   (2,415 )   1,810  
    Net (loss) income   $ (1,724 )   $ 334   $ (4,299 )   $ 5,027  
                         
    Basic (loss) earnings per share   $ (0.20 )   $ 0.04   $ (0.50 )   $ 0.58  
    Diluted (loss) earnings per share   $ (0.20 )   $ 0.04   $ (0.50 )   $ 0.57  
    Cash dividends declared per common share   $ 0.01     $ 0.05   $ 0.08     $ 0.74  
    Basic weighted-average shares outstanding     8,630,432       8,575,902   8,610,706     8,636,495  
    Diluted weighted-average shares outstanding     8,630,432       8,603,843   8,610,706     8,684,092  
                         
    Territorial Bancorp Inc. and Subsidiaries
    Consolidated Balance Sheets (Unaudited)
    (Dollars in thousands, except per share data)
                 
        December 31,   December 31,
        2024    2023 
    ASSETS            
    Cash and cash equivalents   $ 123,523     $ 126,659  
    Investment securities available for sale, at fair value     18,492       20,171  
    Investment securities held to maturity, at amortized cost (fair value of $513,499 and $568,128 at December 31,2024 and 2023, respectively)     645,669       685,728  
    Loans receivable     1,286,662       1,308,552  
    Allowance for credit losses     (5,114 )     (5,121 )
    Loans receivable, net of allowance for credit losses     1,281,548       1,303,431  
    Federal Home Loan Bank stock, at cost     8,542       12,192  
    Federal Reserve Bank stock, at cost     3,189       3,180  
    Accrued interest receivable     5,800       6,105  
    Premises and equipment, net     7,278       7,185  
    Right-of-use asset, net     12,523       12,371  
    Bank-owned life insurance     49,645       48,638  
    Income taxes receivable     2,082       344  
    Deferred income tax assets, net     1,877       2,457  
    Prepaid expenses and other assets     9,547       8,211  
    Total assets   $ 2,169,715     $ 2,236,672  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Liabilities:            
    Deposits   $ 1,717,663     $ 1,636,604  
    Advances from the Federal Home Loan Bank     160,000       242,000  
    Advances from the Federal Reserve Bank     —       50,000  
    Securities sold under agreements to repurchase     —       10,000  
    Accounts payable and accrued expenses     19,403       23,334  
    Lease liability     17,967       17,297  
    Advance payments by borrowers for taxes and insurance     6,331       6,351  
    Total liabilities     1,921,364       1,985,586  
                 
    Stockholders’ Equity:            
    Preferred stock, $0.01 par value; authorized 50,000,000 shares, no shares issued or outstanding     —       —  
    Common stock, $0.01 par value; authorized 100,000,000 shares; issued and outstanding            
    8,832,210 and 8,826,613 shares at December 31, 2024 and 2023, respectively     88       88  
    Additional paid-in capital     48,367       48,022  
    Unearned ESOP shares     (1,957 )     (2,447 )
    Retained earnings     206,693       211,644  
    Accumulated other comprehensive loss     (4,840 )     (6,221 )
    Total stockholders’ equity     248,351       251,086  
    Total liabilities and stockholders’ equity   $ 2,169,715     $ 2,236,672  
                 
    Territorial Bancorp Inc. and Subsidiaries
    Selected Financial Data (Unaudited)
                       
                  Three Months Ended
                  December 31,
                    2024       2023  
                       
    Performance Ratios (annualized):            
      Return on average assets         -0.32 %     0.06 %
      Return on average equity         -2.75 %     0.53 %
      Net interest margin on average interest earning assets   1.39 %     1.78 %
      Efficiency ratio (1)           137.09 %     94.62 %
                       
                  At   At
                  December   December
                    31, 2024       31, 2023  
                       
    Selected Balance Sheet Data:            
      Book value per share (2)       $ 28.12     $ 28.45  
      Stockholders’ equity to total assets       11.45 %     11.23 %
                       
                       
    Asset Quality                
    (Dollars in thousands):              
      Delinquent loans 90 days past due and not accruing $ 1,219     $ 227  
      Non-performing assets (3)       $ 1,933     $ 2,260  
      Allowance for credit losses       $ 5,114     $ 5,121  
      Non-performing assets to total assets       0.09 %     0.10 %
      Allowance for credit losses to total loans       0.40 %     0.39 %
      Allowance for credit losses to non-performing assets   264.56 %     226.59 %
                       
                       
    Note:                
                       
    (1) Efficiency ratio is equal to noninterest expense divided by the sum of net interest income and noninterest income
    (2) Book value per share is equal to stockholders’ equity divided by number of shares issued and outstanding
    (3) Non-performing assets consist of non-accrual loans and real estate owned. Amounts are net of charge-offs

    The MIL Network –

  • MIL-OSI USA: Hoeven: Army Corps Issues More than $10 Million Contract to Complete Southern Embankment

    US Senate News:

    Source: United States Senator for North Dakota John Hoeven

    01.31.25

    Corps Issues Last Major Contract to Finish Federal Portion of Fargo-Moorhead Region’s Flood Protection Project

    WASHINGTON – Senator John Hoeven today announced that the U.S. Army Corps of Engineers has awarded a more than $10 million contract to construct Reach SE-5, the last of 7 reaches required to complete the 21-mile long Southern Embankment.

    • This reach, which is located in Minnesota, will include reconstructing portions of 180th Avenue, its intersection with Highway 75 and the Wolverton Creek crossing.
    • The funding is made available under the $437 million Army Corps’ award that Hoeven secured in 2022.
    • This comes as the last major Corps contract being awarded for the Fargo-Moorhead region’s flood protection project, marking a major milestone as the federal portion of the project nears completion.

    “Awarding this final contract to complete the Southern Embankment is achieving a major milestone in protecting the entire Fargo-Moorhead region against the threat of flooding,” said Hoeven. “Numerous efforts have to be tied together in order to make this permanent flood protection a reality. That’s why it was critical that we not only secure full federal funding now to provide certainty over the long-term, but also advance this as the Corps’ first major P3 project. This approach, which is serving as model for Army Corps projects across the country, provided the flexibility needed to build the various aspects of the project concurrently.”

    Today’s milestone follows Hoeven’s efforts to:

    • Pass 16 acts of Congress, including:
      • 9 legislative provisions, such as the project authorization in 2014 and a new construction start authorization in 2016.
    • 7 separate appropriations to fund the project’s construction.
    • Fully fund the $750 million federal cost share.
      • Prior to this, Hoeven helped renegotiate the Project Partnership Agreement to increase the federal funding commitment from $450 million.
    • Advance this as the first major Army Corps project to utilize the public-private partnership (P3) split-delivery model and a Water Infrastructure Finance and Innovation Act (WIFIA) loan.
    • Coordinate efforts across four federal agencies.
    • Provide funding and flexibility to concurrently raise I-29 and begin excavating the Red River Control Structure to keep the project on schedule.
    • Resolve the easement issue on lands purchased with Hazard Mitigation Grant Program (HMGP) funding, allowing the project to use an alternative route.

    MIL OSI USA News –

  • MIL-OSI Security: Two Mexican Nationals Charged in Conspiracy to Fraudulently Obtain Visas for Immigrant ‘Victims’ of Staged Crimes

    Source: Office of United States Attorneys

    KANSAS CITY, Mo. – Two Mexican nationals in the Kansas City area have been charged in federal court for their roles in a conspiracy to stage numerous armed robberies so that the purported victims of these crimes, who were immigrants to the United States, could use their status as crime victims to apply for visas.

    Oscar Gutierrez, 35, of Independence, Mo., and Jose Luis Morales Salgado, 36, of Kansas City, Mo., both of whom are citizens of Mexico, were charged in a criminal complaint filed under seal in the U.S. District Court in Kansas City, Mo., on Thursday, Jan. 30. The federal criminal complaint, which was unsealed and made public following Salgado’s arrest and initial court appearance, charges both men with participating in a conspiracy to fraudulently obtain immigration visas. Gutierrez is already in custody on state charges in a separate case.

    The complaint alleges that immigrants contacted Salgado to arrange for themselves to become “victims” of staged robberies so they could submit applications for U-Visas, which are granted to crime victims. These immigrants, who were either illegally present in the United States or in the United States legally through work visas, paid Salgado thousands of dollars to participate. In exchange, Salgado directed them to the location of a planned staged robbery on a particular day and time.

    Salgado allegedly recruited individuals to pose as robbers during the staged robberies and provided directions to those individuals. One of the persons Salgado recruited to pose as a robber, says the complaint, was Gutierrez.

    According to an affidavit filed in support of the criminal complaint, each incident involved immigrants who later told police they had car trouble and pulled over and got out of their vehicle to diagnose the car trouble. Soon after stopping, another vehicle would arrive and park next to, or in front of, the purported victim’s vehicle. The robber, wearing a medical mask over his face and brandishing a firearm, would strike the purported victims in the head or face, take their cash, and typically fire two rounds into the purported victim’s vehicle.

    Investigators with the Kansas City, Mo., Police Department initially identified 11 incidents in which the reported robberies followed this pattern. These cases were linked to each other, based in part, on leads generated from the National Integrated Ballistics Information Network (NIBIN). NIBIN utilized ballistic imaging technology to compare cartridge case markings on the expended cartridges from each crime scene.  Detectives determined there was likely one firearm used in the commission of all of the robberies. Detectives gathered information from city cameras and license plate readers to identify the vehicles used in the robberies, the affidavit says, which led them to Gutierrez.

    Salgado allegedly instructed the immigrants to falsely report to law enforcement officials how the robberies occurred, and advised them how to make these false reports in an effort to bolster their applications for U-Visas.

    The Victims of Trafficking and Violence Protection Act strengthens the ability of law enforcement agencies to investigate and prosecute certain crimes while also protecting victims of crimes who are willing to help law enforcement authorities in the investigation or prosecution of the criminal activity. Foreign nationals are eligible for a U-Visa if they were the victim of qualifying criminal activity, suffered substantial physical or mental abuse as a result of having been a victim of the criminal activity, possessed information about the criminal activity, and were likely to be helpful to law enforcement in the investigation or prosecution of the crime.

    According to the affidavit, a source told investigators the number of purported victims involved in the scheme was well over 100. The complaint specifically cites 11 robberies involving 33 purported victims that occurred as part of the conspiracy between Dec. 29, 2021, and July 13, 2024.  Of those 33 immigrants, 18 have submitted U-Visa applications claiming to be victims of violent crimes.

    An undercover federal agent and a law enforcement source met with Salgado on Jan. 22, 2025, according to the affidavit, and recorded their meeting. The undercover agent made arrangements to pay Salgado $4,000 for the robbery to be staged in order to fraudulently obtain a U-Visa. Salgado told the undercover agent he would “put on a grand show.” Once the plans were agreed upon, the undercover agent paid Salgado $500 with a promise to pay the balance later. The undercover agent met with Salgado again on Thursday, Jan. 30, and Salgado was arrested.

    The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

    This case is being prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations.

    MIL Security OSI –

  • MIL-OSI Security: Arkansas Man Sentenced to 14 Years in federal Prison for Methamphetamine and Firearms Possession

    Source: Office of United States Attorneys

    HOT SPRINGS – A Hot Springs man was sentenced yesterday to 170 months in Federal Prison for Possession of Methamphetamine with the Intent to Distribute and Possession of a Firearm in furtherance of a Drug Trafficking Offense.  The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Hot Springs.

    According to court records, on September 13, 2023, Deangelo Michael Lover, age 34, of Hot Springs, sold 24 grams of Methamphetamine to a Confidential Informant.  On September 15, 2023, Lover again contacted the Informant to sell additional Methamphetamine.  Hot Springs Police Investigators with the Special Investigation Division contacted Arkansas State Police and requested that a traffic stop be conducted on the vehicle occupied by Lover. A traffic stop was conducted, and Lover was arrested on an outstanding warrant. A search of the vehicle yielded 46 grams of Methamphetamine and a handgun.

    On September 30, 2024, Lover pleaded guilty to Possession of a more than five grams of Methamphetamine with Intent to Distribute and Possession of a firearm in Furtherance of a Drug Trafficking Crime. 

    U.S. Attorney David Clay Fowlkes made the announcement.

    The Hot Springs Police Department Special Investigation Division investigated the case.

    Assistant U.S. Attorney Trent Daniels prosecuted the case for the United States.

    Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.

    MIL Security OSI –

  • MIL-OSI Security: Sabine Parish Man Sentenced for Illegal Possession of Methamphetamine

    Source: Office of United States Attorneys

    SHREVEPORT, La. – Acting United States Attorney Alexander C. Van Hook announced that Huey P. Scott, Jr., 63, of Many, Louisiana, has been sentenced for possession with intent to distribute methamphetamine. Scott was found guilty of the charge by a federal jury on September 18, 2024, following a three-day trial.

    United States District Judge S. Maurice Hicks, Jr. sentenced Scott to 151 months (12 years, 7 months) in prison, followed by 5 years of supervised release, on the drug trafficking charge.  Evidence at the jury trial established that agents with the Sabine Parish Sheriff’s Office’s Tactical Narcotics Team conducted controlled buys of methamphetamine from Scott at his residence in Many, Louisiana, on three separate occasions in 2022. Agents learned that Scott was a frequent user and distributor of methamphetamine, and it was proven that he sold the drugs.

    After law enforcement conducted multiple controlled buys, agents executed a search warrant and arrested Scott at his residence. During the search of Scott’s property, agents found and seized a duffel bag containing a clear plastic bag which had approximately 139.31 grams of methamphetamine. In another bag, agents found what appeared to be smaller baggies containing smaller quantities of methamphetamine.  The seized drugs were tested by the North Louisiana Criminalistics Laboratory and found to be methamphetamine. 

    The case was investigated by Federal Bureau of Investigation and Sabine Parish Sheriff’s Office’s Tactical Narcotics Team and prosecuted by Assistant United States Attorneys Mike Shannon and Earl M. Campbell.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Thomaston Man Pleads Guilty to Unlawfully Possessing a Machinegun and Possessing Controlled Substances

    Source: Office of United States Attorneys

    Chandler Breen possessed a firearm augmented with a machinegun conversion device, equipped with a 50-round magazine

    PORTLAND, Maine: A Thomaston man pleaded guilty in U.S. District Court in Portland today to unlawful possessing a machinegun and possessing controlled substances with intent to distribute.

    According to court records, in April 2024, the Thomaston Police Department received a tip that Chandler Breen, 34, was selling drugs behind a local business. A search of Breen’s vehicle revealed a firearm modified with a machinegun conversion device, 9mm ammunition, a large amount of cash, approximately 62 grams of cocaine, approximately 5 grams of methamphetamine, and at least 6 grams of fentanyl.

    Breen faces up to 10 years in prison, a maximum fine of $250,000 and up to three years of supervised release on the firearms charge; and up to 20 years in prison, a maximum fine of $1 million and a minimum of three years of supervised release on the drug charge. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case with assistance from the Thomaston Police Department.

    ###

    MIL Security OSI –

  • MIL-OSI USA: Sen. Scott Touts School Choice Legislation at Invest in Education Coalition Event

    US Senate News:

    Source: United States Senator for South Carolina Tim Scott
    WASHINGTON — At today’s Invest in Education Coalition event in support of National School Choice Week, U.S. Senator Tim Scott (R-S.C.), co-chair of the Congressional School Choice Caucus and member of the Senate Health, Education, Labor and Pensions (HELP) Committee, championed the rights of parents to choose the school that best fits their child’s individual talents and needs. Specifically, he pointed to the Educational Choice for Children Act (ECCA), which he and HELP Committee Chairman Bill Cassidy, M.D. (R-La.) introduced today. The ECCA would expand education freedom and opportunity for students by providing a charitable donation incentive for individuals and businesses to fund scholarship awards for students to cover expenses related to K-12 public and private education.

    Watch Senator Scott’s full remarks here. 
    “Let us [now] do our part as citizens of this great nation, to make available to some of the brightest kids that grew up in neighborhoods like I did…Let’s not let those kids down. They can’t afford a lobbyist, but they have you. And that’s enough,” concluded Senator Scott.
    Click here to learn more about the ECCA. 

    MIL OSI USA News –

  • MIL-OSI Security: Hazard Man Sentenced for Methamphetamine Trafficking

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

    LONDON, Ky. – A Hazard, Ky., man, Herbert Allen, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 126 months, for possession with intent to distribute 500 grams or more of methamphetamine. 

    According to his plea agreement, on May 30, 2023, Allen knowingly possessed with the intent to distribute a kilogram of methamphetamine.  Specifically, based on an investigation, law enforcement obtained a search warrant for Allen’s residence.  Upon their arrival, Allen was in his vehicle.  When approached, Allen admitted to police that a backpack containing a large amount of methamphetamine was in the vehicle.  A search of the vehicle revealed approximately 1,084 grams of methamphetamine, plastic baggies, and a large quantity of cash.

    Under federal law, Allen must serve 85 percent of his prison sentence.  Upon Allen’s release from prison, he will be under the supervision of the U.S. Probation Office for three years. 

    Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.

    The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Justin Blankenship prosecuted the case on behalf of the United States.

    — END —

    MIL Security OSI –

  • MIL-OSI Security: Former Middle School Teacher and Basketball Coach Sentenced for Online Enticement of a Minor

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

    LONDON, Ky. – An Antioch, Tennessee, man, and former South Laurel Middle School teacher and basketball coach, William Goodson, 32, was sentenced on Tuesday, by U.S. District Judge Claria Horn Boom, to 246 months, for online enticement of a minor. 

    According to his plea agreement, from August 2023 through February 23, 2024, while he was a teacher at the Middle School, Goodson persuaded a minor to engage in sexual activity. Specifically, Goodson communicated many sexually explicit messages with the victim, through text messages and Snapchat. When questioned, Goodson told police that his relationship with the minor was like that of a boyfriend, and he further admitted to buying the victim gifts and communicating daily, via Snapchat.  Ultimately, Goodson convinced the minor victim to engage in sexual contact, on multiple occasions, within his classroom.

    Under federal law, Goodson must serve 85 percent of his prison sentence.  Upon Goodson’s release from prison, he will be under the supervision of the U.S. Probation Office for 20 years. 

    Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Chief Jerry Hollon, London Police Department, jointly announced the sentence.

    The investigation was conducted by the FBI and London Police Department.  Assistant U.S. Attorney Justin Blankenship prosecuted the case on behalf of the United States.

    The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.projectsafechildhood.gov.

    — END —

    MIL Security OSI –

  • MIL-OSI Security: New Orleans Man Sentenced to 45 Months for Federal Gun Control and Controlled Substances Acts Violations

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

    NEW ORLEANS, LOUISIANA – LOUIS HANDY (“HANDY”), age 34, a resident of New Orleans, was sentenced on January 16, 2025, by United States District Judge Eldon E. Fallon after previously  pleading guilty to possessing fentanyl with the intent to distribute and being a felon in possession of a firearm, violations of the Federal Gun Control and Federal Controlled Substances Acts, announced U.S. Attorney Duane A. Evans.

    According to court records, the FBI’s New Orleans Violent Crime Task Force, in conjunction with the New Orleans Police Department, observed HANDY carrying a concealed handgun.  When uniformed officers approached him to conduct an investigatory stop, HANDY discarded the gun under a nearby vehicle, ran but was caught after a brief chase.  After seizing the handgun HANDY discarded, officers searched HANDY’s person and vehicle, finding fentanyl, marijuana, oxycodone, suboxone films, a digital scale, latex gloves, and several hundred dollars in cash.  HANDY had several prior felony convictions, that prohibited him from possessing a firearm.

    Judge Fallon sentenced HANDY to 45 months imprisonment on both the drug trafficking count and the felon in possession of a firearm count, to run concurrently, and ordered that HANDY be placed on supervised release for three years after his release from prison.  The Court also ordered HANDY to pay a mandatory special assessment fee of $200.

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

    The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department.  It is being prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel and PSN Coordinator.

    MIL Security OSI –

  • MIL-OSI: Capital Southwest Announces U.S. Federal Income Tax Treatment of 2024 Dividends

    Source: GlobeNewswire (MIL-OSI)

    DALLAS, Jan. 31, 2025 (GLOBE NEWSWIRE) — Capital Southwest Corporation (“Capital Southwest” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today the U.S. federal income tax treatment of its 2024 dividends.

    U.S. Federal Income Tax Treatment of 2024 Dividends

    Capital Southwest paid dividends totaling $2.53 per share that are attributable to the tax year ended December 31, 2024, with 100.00% of those dividends comprised of ordinary income, including net short-term capital gains. The Company has posted information regarding the U.S. federal income tax characteristics of its dividends that are attributable to 2024 on its website (http://www.capitalsouthwest.com/tax-information).

    The amounts shown in the table below represent the final classification of the Company’s 2024 dividends. This information supersedes any estimated information you may have received during the year. Calendar-year 2024 dividends are classified as follows:

    Form 1099-DIV Reporting Box 1a Box 1a and Box 1b Box 2a Non-U.S. Shareholder Non-U.S. Shareholder
    Record Date Payment Date Distribution per Share Ordinary Dividend Per Share (i) Qualified Dividends Per Share (i), (ii) Long-Term Capital Gain Per Share (iii) % of Interest-Related and Short-Term Capital Gain (iv) % of Distributions Exempt from U.S. Withholding Tax (v)
    03/15/24 03/29/24 $ 0.6300   $ 0.6300   $ –   $ –   92.89 % 92.89 %
    06/14/24 03/28/24 $ 0.6300   $ 0.6300   $ –   $ –   92.89 % 92.89 %
    09/13/24 09/30/24 $ 0.6400   $ 0.6400   $ –   $ –   92.89 % 92.89 %
    12/13/24 12/31/24 $ 0.6300   $ 0.6300   $ –   $ –   92.89 % 92.89 %
        $ 2.5300   $ 2.5300   $ –   $ –      
                   
      % of Total Dividend            
      Paid Per Share   100.00 %   100.00 %   0.00 %   0.00 % 92.89 % 92.89 %
                                       

    (i) Form 1099-DIV Box 1a includes the combined amounts of the columns “Ordinary Dividend Per Share” and “Qualified Dividends Per Share,” contained within table above.

    (ii) The portion of the dividend reported in Box 1a treated as Qualified Dividend is reported on Form 1099-DIV in Box 1b.

    (iii) Net Capital Gain Dividend is reported on Form 1099-DIV in Box 2a.

    (iv) The Company designates the above percentages of each of the total dividends by payment date as Interest-Related Dividend and Short-Term Capital Gain Dividend in accordance with Sections 871(k) and 881(e) under the Internal Revenue Code (the “Code”).

    (v) The percentages designate the portion of Capital Southwest’s dividends received by Non-U.S. Residents and Foreign Corporation Shareholders that constitute Interest-Related Dividends, Short-Term Capital Gains Dividends, and Net Capital Gain Dividends to total amount of the dividends derived which generally are exempt from U.S. withholding tax for these periods for Non-U.S. Residents and Foreign Corporation Shareholders.

    Non-U.S. residents and foreign corporation shareholders (“Non-U.S. Shareholders”) in a regulated investment company (“RIC”), such as Capital Southwest, are exempt from U.S. withholding tax on both “interest-related” dividends and short-term capital gains in accordance with Sections 871(k) and 881(e) of the Code. In addition, Non-U.S. Shareholders in a RIC are also exempt from U.S. withholding tax on long-term capital gains. Approximately 92.89% of Capital Southwest’s 2024 dividends relate to interest and short-term capital gains.  See the “Tax Treatment of 2024 Dividends for Non-U.S. Shareholders” posted on the Company’s website for more details (http://www.capitalsouthwest.com/tax-information).

    Dividends distributed to Non-U.S. Shareholders may have been withheld to pay U.S. federal income tax. Non-U.S. Shareholders should contact their tax advisor with any questions regarding this information, and its application to any claim for refund of taxes paid to the U.S. Internal Revenue Service.

    About Capital Southwest

    Capital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $1.5 billion in investments at fair value as of September 30, 2024. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $50 million investments across the capital structure, including first lien, second lien, and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.

    Investor Relations Contact:

    Michael S. Sarner, Chief Financial Officer
    214-884-3829

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