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Category: Finance

  • MIL-Evening Report: Palau newspaper sued by president’s family company ahead of general election

    By Stefan Armbruster of BenarNews

    Palau’s largest newspaper is being sued for defamation by the company of President Surangel Whipps Jr’s father, just days ahead of general elections in the Pacific nation.

    Surangel and Sons alleges “negligence and defamation” by the Island Times and its editor Leilani Reklai for an article published on Tuesday with “false and unsubstantiated allegations,” owner Surangel Whipps Sr said in a press release on Thursday.

    Reklai has rejected the company’s allegations and said the “lawsuit is trying to control how media here in Palau tells a story”, a news article about the case in the Island Times reported on Friday.

    “I feel like we are being intimidated, we are being forced to speak a certain narrative rather than present diverse community perspectives,” said Reklai, who is also a stringer for BenarNews.

    The Micronesian nation of 17,000 people — 650 km north of Papua New Guinea — goes to the polls on November 5. Whipps Jr’s rival is his brother-in-law Tommy Remengesau Jr, who was president from 2001 to 2009 and 2013 to 2021.

    The controversy comes after Palau was top of the inaugural 2023 Pacific Media Freedom Index of 14 island countries that highlighted the region’s media facing significant political and economic pressures, bribes and corruption, as well as self-censorship.

    Island Times editor Leilani Reklai . . . fears the lawsuit could have serious consequences for the media in Palau and bankrupt the newspaper. Image: Stefan Armbruster

    Island Times reported on Friday the suit is seeking compensation and punitive damages and that the company asserts the “monetary awards should be substantial enough to prevent similar conduct from the newspaper and Reklai in future”.

    Surangel and Sons financial details — leaked from the country’s tax office — were posted on social media last weekend, prompting heated online debate over how much it paid.

    A new corporate and goods and services tax system introduced by Whipps Jr’s government is currently being rolled out in Palau and its merits have been a focus of election campaigning.

    The company in a statement said its “privacy rights had been violated,” the tax details were obtained illegally, posted online without consent, and some of the figures had been altered.

    Motivation ‘confusing voters’
    “The motivation behind the circulation of this document is clearly for misinformation and disinformation to confuse voters. In the end Surangel and Sons is not running for office. Unfortunately, it has been victimised by this smear campaign,” the company posted on social media.

    Island Times in a 225-word, front-page story headlined “Surangel & Sons condemns tax report leak as privacy violation” reported the company’s statement on Tuesday. It also quoted financial details from the leaked documents and accompanying commentary.

    Whipps Jr. in a press conference on Wednesday accused the Island Times of publishing disinformation.

    “Island Times continues to print political propaganda, it’s not accurate,” Whipps Jr said, calling for a correction to be published.

    The lawsuit against the paper and its editor was served the next day.

    Whipps Jr’s spokesperson told BenarNews any questions related to the lawsuit should be directed to the parties involved.

    Eightieth birthday celebrations for Surangel Whipps Sr (left) with his son Surangel Whipps Jr in February 2020. Image: Diaz Broadcasting Palau screenshot BenarNews

    Surangel and Sons was founded in 1980 by Whipps Sr, who also served as Palau’s president briefly in 2005 and for two years from 2007.

    Business ‘offers everything’
    The privately-owned business “offers everything from housing design and automotive repair to equipment rentals, groceries, and scuba gear” through its import, sales, construction and travel arms, the company’s website says.

    Previously as CEO, Whipps Jr transformed the company from a family store to one of Palau’s largest and most diversified businesses, employing more than 700 people.

    His LinkedIn profile states he finished as CEO in January 2021, after 28 years in the position and in the month he became president. His spokesperson did not respond to questions from BenarNews about if he still retains any direct financial or other links to the company.

    Surangel and Sons said the revelation of sensitive business information threatens their competitive advantage and puts jobs at risk.

    Palau’s Minister of Finance Kaleb Udui Jr told the president’s press conference on Wednesday an investigation was underway, a special prosecutor would be appointed and apologized for the leak to the company.

    “I would hope the media would make extra effort to help educate the public and discourage misinformation and breaches of privacy of the tax office and any other government office,” Udui said, confirming the tax documents had been altered before being posted on social media.

    He said tax office staff have previously been warned about leaks and ensuring data confidentiality, as breaches negatively impact the confidence of foreign investors in Palau.

    Explanation rather than leak
    Whipps Jr added that the newspaper should have explained the tax system instead of reporting the leaked information.

    He also accused Island Times of failure to disclose a paid advertisement in this week’s edition of the paper for his political opponent.

    “I’m disappointed in the Island Times, because there was an article that was not an article, a paid advertisement,” Whipps Jr said about a colourful blue and yellow election campaign graphic.

    Island Times told BenarNews it was not usual practice to put “Paid Advertisement” on advertisements but it would review its policy for political campaign material.

    Reklai fears the lawsuit could have serious consequences for the media in Palau and bankrupt Island Times, the paper reported.

    “If I don’t stand up to this, it sends a signal to all journalists that they risk facing claims for damages for powerful companies and government officials while carrying out their work,” she said.

    Palau has two newspapers and four radio stations and enshrined in its constitution are protections for journalists, including a guarantee they cannot be jailed for refusing to disclose sources.

    Surangel and Sons said they would no longer sell Island Times through their outlets.

    Copyright ©2015-2024, BenarNews. Republished with the permission of BenarNews.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Georgia CPA Sentenced in Syndicated Conservation Easement Tax Scheme

    Source: US State of North Dakota

    Defendant Helped Clients File Tax Returns Claiming $14M in False Deductions, Causing Nearly $5M in Loss to the IRS

    A Georgia accountant was sentenced today to 28 months in prison for his role in the promotion and sale of abusive syndicated conservation easement tax shelters.

    According to court documents and statements made in court, Herbert Lewis was a CPA and return preparer at an Atlanta-based accounting firm. Beginning at least in 2014 and through at least 2019, Lewis promoted and sold tax deductions to his wealthy clients in the form of units in illegal syndicated conservation easement tax shelters organized and created by co-defendants Jack Fisher, James Sinnott and others.

    According to court documents and statements made in court, Lewis also knew that, contrary to law, the transactions related to these illegal tax shelters lacked economic substance, that his wealthy clients participated only to obtain a tax deduction and that his clients received only a tax benefit for their participation in the shelters. For example, the scheme entailed the creation of partnerships that would purchase land and land-owning companies and then donate conservation easements over that land or the land itself. A client who purchased units in one of these partnerships had a “vote” ostensibly on what to do with the land the partnership owned. However, Lewis knew that the vote held by the partnership each year was just for optics and that the land invariably would be donated largely as a conservation easement.

    In some cases, in order to make it appear that his clients had joined the partnerships before the date of the conservation easement donation, which was necessary to claim the tax benefits, Lewis also instructed and caused his clients to falsely backdate documents — such as subscription agreements and checks — related to the partnerships. In 2019 alone, Lewis assisted 15 clients with claiming false deductions on their 2018 returns.

    In total, Lewis assisted in the preparation of tax returns that claimed nearly $14 million in false deductions based on backdated documents, causing a tax loss to the IRS of nearly $5 million.   

    Lewis earned over $1 million in commissions for his role in promoting and selling the illegal tax shelters to clients. Lewis also concealed the amount of commissions he had earned from selling units in these shelters by not fully reporting the commissions on his personal returns and instead fraudulently reporting commission income he had earned as income on the tax returns of nominee entities in his children’s names.

    In addition to his prison sentence, U.S. District Court Judge Timothy C. Batten Sr. for the Northern District of Georgia ordered Lewis to serve three years of supervised release and to pay $4,878,990.90 in restitution.

    Nine additional defendants have previously pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme. These other defendants include appraiser Walter Douglas “Terry” Roberts, accountant Stein Agee, CPA Corey Agee, CPA Ralph Anderson, CPA James Benkoil, CPA Victor Smith, CPA William Tomasello, CPA and attorney Randall Lenz and attorney Vi Bui.

    Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS Criminal Investigation Chief Guy Ficco made the announcement. They also thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance.

    IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case.

    Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft and Nicholas J. Schilling Jr. of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the Northern District of Georgia, are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI USA: Owner of Florida Labor-Staffing Companies Pleads Guilty to Tax Fraud and Money Laundering

    Source: US State of North Dakota

    A Ukrainian national pleaded guilty today to conspiracy to defraud the United States and conspiracy to commit money laundering.

    According to the court documents and statements made in court, between April 2008 and July 2021, Oleksandr Yurchyk and others owned and operated a series of labor-staffing companies in southern Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC and Tropical City Group LLC. Through these staffing companies, Yurchyk and others facilitated the employment of non-resident aliens in the hospitality industry who were not authorized to work in the United States and helped evade the assessment and collection of federal income and employment taxes. Yurchyk and his co-defendants also laundered more than $11 million of proceeds from their scheme.

    Yurchyk is scheduled to be sentenced on Jan. 27, 2025. He faces a maximum penalty of 20 years in prison for the conspiracy to commit money laundering and five years in prison for the conspiracy to defraud the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.

    Homeland Security Investigations and IRS Criminal Investigation are investigating the case.

    Senior Litigation Counsel Sean Beaty and Trial Attorneys Matthew B. Hicks and Wilson R. Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI USA: Former Maryland Police Officer Convicted of Obstruction of Justice Related to Sex with Teen in Custody

    Source: US State of California

    A federal judge this week convicted a former Fairmount Heights, Maryland, police officer on one count of obstructing justice by writing a false police report.

    U.S. District Court Judge Deborah Boardman for the District of Maryland found Martique Vanderpool guilty following a 3-day bench trial that ended on Oct. 24. The judge found that former officer Vanderpool falsified a police report with intent to impede an investigation into an incident on Sept. 6-7, 2019, during which he and another officer arrested a 19-year-old woman and took her in handcuffs to the locked and otherwise-empty Fairmount Heights police station, where the officers uncuffed her and Vanderpool told her to “make this right” before having sex with her while she was in custody.

    “Martique Vanderpool obstructed justice to cover up his own serious police misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This former officer’s conduct is a betrayal both of the young woman who was in his care and of the entire law enforcement profession. With this verdict comes accountability for his crime.”

    “When those sworn to uphold the law choose instead to violate it, it undermines the very foundation of our society,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Martique Vanderpool abused his power and violated his oath as a police officer. He betrayed the community that put their trust in him and will now face the consequences of his actions.”

    According to evidence at trial and findings of fact made by the judge, Vanderpool and his partner, former Officer Phillip Dupree arrested the young woman for speeding and learned that she was rushing to get to her young son, who had been injured in an accident. Upon learning that the young woman had only a learner’s permit, Dupree asked her to get out of the car, at which point the young woman had a panic attack and Dupree took her to the ground and handcuffed her. In “an apparent state of mental distress,” the handcuffed young woman ran into the street and then banged her head on the side of the car she had been driving.

    The officers had the car towed from the scene and transported the young woman to the Fairmount Heights police station, even though the station had no holding cell or booking facilities and officers were not supposed to take prisoners there. The officers took the young woman inside, in handcuffs, and then removed the cuffs. Vanderpool told her “We gotta make this right,” and then had sex with her on a couch in the main room of the station. Afterward, the officers drove the young woman to a tow lot where the car, which was registered to someone else, was returned to her.

    According to the judge’s findings, Vanderpool then falsified an incident report to create a misleading impression that the officers and the young woman never left the scene of the traffic stop and that the car was returned to the registered owner. The report purposely omitted that the officers took the young woman from the scene to the police station; that Vanderpool had sex with her; and that the officers caused the car to be towed and later coordinated the release of the car to her. The report also purposely misstated that the car was returned to the registered owner.

    The judge, in finding that the false report was intended to interfere with an investigation that was within the jurisdiction of the FBI, noted that the young woman was a teenager, was slight of build, was in a state of panic, was forced to the ground by an officer, had her car towed, said that she needed to get to her son, was taken in handcuffs to the police station and was told to “make this right.”

    A sentencing hearing is scheduled for Feb. 20, 2025. Vanderpool faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Vanderpool’s partner, Phillip Dupree, was recently convicted in an unrelated case of committing a federal criminal civil rights violation by using unreasonable force during an unrelated arrest.

    The FBI Baltimore Field Office investigated the case.

    Deputy Chief Bobbi Bernstein and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case, with assistance from Trial Attorney Betsy Hutson of the Justice Department’s Civil Rights Division. 

    MIL OSI USA News –

  • MIL-OSI USA: Compound Ingredient Supplier Medisca Inc., to Pay $21.75M to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded Prescriptions

    Source: US State of California

    The Justice Department announced today that Medisca Inc. (Medisca), has agreed to pay $21.75 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) for two ingredients used in compound prescriptions. Medisca’s pricing scheme allegedly caused pharmacies that purchased those ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers’ Compensation Programs (federal health care programs).

    “We will not tolerate fraudulent pricing schemes targeting health care programs that support veterans and other federal beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement demonstrates, we will hold accountable not just those who submit false claims, but all who participate in schemes designed to defraud the American taxpayers.”

    Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers, such as Medisca, to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Medisca knew that compound prescription reimbursement under federal health care programs was based in part on the AWPs it reported to various price listing agencies. The United States alleged that Medisca knowingly inflated the AWPs for resveratrol (NDC No. 38779-2863) and mometasone furoate (NDC No. 38779-2413) in order to increase the reimbursement that its pharmacy customers received from the federal healthcare programs for using those Medisca ingredients.

    Medisca acquired resveratrol from manufacturers for approximately $0.37 per gram. It repackaged and sold resveratrol for under $2 per gram. Medisca reported an AWP for resveratrol at $777 per gram, creating a spread of over $775 for each gram of resveratrol used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs. Medisca acquired mometasone furoate from manufacturers for under $8 per gram. It repackaged and sold that ingredient to compound pharmacies for over $1,000 per gram. Medisca reported an AWP for mometasone furoate at over $7,300 per gram, thereby creating a spread of approximately $6,300 for each gram of the ingredient used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs.  

    Medisca allegedly used the high AWPs it reported and the resulting profit potential it created for its customers as an inducement to its compound pharmacy customers to purchase those ingredients. Medisca’s alleged fraudulent pricing scheme enabled its pharmacy customers to bill federal healthcare programs inflated amounts – often thousands of dollars per prescription – for compound formulations containing those ingredients.

    “The systems establishing federal reimbursements for compounded pharmaceuticals should not be viewed by companies as an opportunity to artificially inflate reimbursements from federal payors such as TRICARE,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “When companies seek to manipulate the system for their own gain, the Eastern District of Texas will hold them accountable.”

    “When federal healthcare programs are defrauded it hurts all Americans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to using the False Claims Act (FCA) to hold individuals and companies accountable for the impact their actions have on our critical programs. Taxpayers deserve honest pricing and assurances that the government is never overcharged.”

    “This settlement sends a clear message about the unwavering commitment of the Defense Criminal Investigation Service (DCIS) to protect the integrity of TRICARE, the Department of Defense’s health care benefit program which serves our U.S. military, their family members, and military retirees,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense – Office of Inspector General, DCIS Southwest Field Office. “Health care providers who use fraudulent means to seek financial gain at the expense of TRICARE and the taxpayer will be diligently investigated and held accountable.”

    The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Doug McMakin against Medisca. Mr. McMakin is a pharmacist who owned and operated a compounding pharmacy that dispensed compounded prescriptions. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. McMakin will receive $3,425,625 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. McMakin v. Medisca Inc. (EDTX).  

    The resolution of these matters was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Eastern District of Texas and the Western District of Texas, with investigative support from the DCIS, U.S. Postal Service Office of Inspector General (USPS OIG) and the Department of Labor.  

    The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

    Senior Trial Counsel Sanjay Bhambhani and Trial Attorney John Deck of the Civil Division, Assistant U.S. Attorney Mary Kruger for the Western District of Texas and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter, with investigative assistance from Special Agents Nicholas Koechig of DCIS and Timothy Jones of USPS OIG.

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    Settlement

    MIL OSI USA News –

  • MIL-OSI Security: Former Maryland Police Officer Convicted of Obstruction of Justice Related to Sex with Teen in Custody

    Source: United States Attorneys General 7

    A federal judge this week convicted a former Fairmount Heights, Maryland, police officer on one count of obstructing justice by writing a false police report.

    U.S. District Court Judge Deborah Boardman for the District of Maryland found Martique Vanderpool guilty following a 3-day bench trial that ended on Oct. 24. The judge found that former officer Vanderpool falsified a police report with intent to impede an investigation into an incident on Sept. 6-7, 2019, during which he and another officer arrested a 19-year-old woman and took her in handcuffs to the locked and otherwise-empty Fairmount Heights police station, where the officers uncuffed her and Vanderpool told her to “make this right” before having sex with her while she was in custody.

    “Martique Vanderpool obstructed justice to cover up his own serious police misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This former officer’s conduct is a betrayal both of the young woman who was in his care and of the entire law enforcement profession. With this verdict comes accountability for his crime.”

    “When those sworn to uphold the law choose instead to violate it, it undermines the very foundation of our society,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Martique Vanderpool abused his power and violated his oath as a police officer. He betrayed the community that put their trust in him and will now face the consequences of his actions.”

    According to evidence at trial and findings of fact made by the judge, Vanderpool and his partner, former Officer Phillip Dupree arrested the young woman for speeding and learned that she was rushing to get to her young son, who had been injured in an accident. Upon learning that the young woman had only a learner’s permit, Dupree asked her to get out of the car, at which point the young woman had a panic attack and Dupree took her to the ground and handcuffed her. In “an apparent state of mental distress,” the handcuffed young woman ran into the street and then banged her head on the side of the car she had been driving.

    The officers had the car towed from the scene and transported the young woman to the Fairmount Heights police station, even though the station had no holding cell or booking facilities and officers were not supposed to take prisoners there. The officers took the young woman inside, in handcuffs, and then removed the cuffs. Vanderpool told her “We gotta make this right,” and then had sex with her on a couch in the main room of the station. Afterward, the officers drove the young woman to a tow lot where the car, which was registered to someone else, was returned to her.

    According to the judge’s findings, Vanderpool then falsified an incident report to create a misleading impression that the officers and the young woman never left the scene of the traffic stop and that the car was returned to the registered owner. The report purposely omitted that the officers took the young woman from the scene to the police station; that Vanderpool had sex with her; and that the officers caused the car to be towed and later coordinated the release of the car to her. The report also purposely misstated that the car was returned to the registered owner.

    The judge, in finding that the false report was intended to interfere with an investigation that was within the jurisdiction of the FBI, noted that the young woman was a teenager, was slight of build, was in a state of panic, was forced to the ground by an officer, had her car towed, said that she needed to get to her son, was taken in handcuffs to the police station and was told to “make this right.”

    A sentencing hearing is scheduled for Feb. 20, 2025. Vanderpool faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Vanderpool’s partner, Phillip Dupree, was recently convicted in an unrelated case of committing a federal criminal civil rights violation by using unreasonable force during an unrelated arrest.

    The FBI Baltimore Field Office investigated the case.

    Deputy Chief Bobbi Bernstein and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division prosecuted the case, with assistance from Trial Attorney Betsy Hutson of the Justice Department’s Civil Rights Division. 

    MIL Security OSI –

  • MIL-OSI Security: Compound Ingredient Supplier Medisca Inc., to Pay $21.75M to Resolve Allegations of False and Inflated Average Wholesale Prices for Ingredients Used in Compounded Prescriptions

    Source: United States Attorneys General 7

    The Justice Department announced today that Medisca Inc. (Medisca), has agreed to pay $21.75 million to resolve allegations concerning the establishment of false and inflated Average Wholesale Prices (AWPs) for two ingredients used in compound prescriptions. Medisca’s pricing scheme allegedly caused pharmacies that purchased those ingredients to submit false prescription claims to the Defense Health Agency, which administers the TRICARE Program for the Department of Defense and the Department of Labor’s Office of Workers’ Compensation Programs (federal health care programs).

    “We will not tolerate fraudulent pricing schemes targeting health care programs that support veterans and other federal beneficiaries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement demonstrates, we will hold accountable not just those who submit false claims, but all who participate in schemes designed to defraud the American taxpayers.”

    Compounding pharmacies purchase ingredients or chemicals from ingredient suppliers, such as Medisca, to prepare and fill compound prescriptions for patients who require a specially made prescription that is not generally available in the marketplace. Medisca knew that compound prescription reimbursement under federal health care programs was based in part on the AWPs it reported to various price listing agencies. The United States alleged that Medisca knowingly inflated the AWPs for resveratrol (NDC No. 38779-2863) and mometasone furoate (NDC No. 38779-2413) in order to increase the reimbursement that its pharmacy customers received from the federal healthcare programs for using those Medisca ingredients.

    Medisca acquired resveratrol from manufacturers for approximately $0.37 per gram. It repackaged and sold resveratrol for under $2 per gram. Medisca reported an AWP for resveratrol at $777 per gram, creating a spread of over $775 for each gram of resveratrol used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs. Medisca acquired mometasone furoate from manufacturers for under $8 per gram. It repackaged and sold that ingredient to compound pharmacies for over $1,000 per gram. Medisca reported an AWP for mometasone furoate at over $7,300 per gram, thereby creating a spread of approximately $6,300 for each gram of the ingredient used by a pharmacy customer in a compound prescription reimbursed by the federal healthcare programs.  

    Medisca allegedly used the high AWPs it reported and the resulting profit potential it created for its customers as an inducement to its compound pharmacy customers to purchase those ingredients. Medisca’s alleged fraudulent pricing scheme enabled its pharmacy customers to bill federal healthcare programs inflated amounts – often thousands of dollars per prescription – for compound formulations containing those ingredients.

    “The systems establishing federal reimbursements for compounded pharmaceuticals should not be viewed by companies as an opportunity to artificially inflate reimbursements from federal payors such as TRICARE,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “When companies seek to manipulate the system for their own gain, the Eastern District of Texas will hold them accountable.”

    “When federal healthcare programs are defrauded it hurts all Americans,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to using the False Claims Act (FCA) to hold individuals and companies accountable for the impact their actions have on our critical programs. Taxpayers deserve honest pricing and assurances that the government is never overcharged.”

    “This settlement sends a clear message about the unwavering commitment of the Defense Criminal Investigation Service (DCIS) to protect the integrity of TRICARE, the Department of Defense’s health care benefit program which serves our U.S. military, their family members, and military retirees,” said Acting Special Agent in Charge Ryan Settle of the Department of Defense – Office of Inspector General, DCIS Southwest Field Office. “Health care providers who use fraudulent means to seek financial gain at the expense of TRICARE and the taxpayer will be diligently investigated and held accountable.”

    The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Doug McMakin against Medisca. Mr. McMakin is a pharmacist who owned and operated a compounding pharmacy that dispensed compounded prescriptions. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. McMakin will receive $3,425,625 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. McMakin v. Medisca Inc. (EDTX).  

    The resolution of these matters was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Eastern District of Texas and the Western District of Texas, with investigative support from the DCIS, U.S. Postal Service Office of Inspector General (USPS OIG) and the Department of Labor.  

    The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

    Senior Trial Counsel Sanjay Bhambhani and Trial Attorney John Deck of the Civil Division, Assistant U.S. Attorney Mary Kruger for the Western District of Texas and Assistant U.S. Attorney James Gillingham for the Eastern District of Texas handled the matter, with investigative assistance from Special Agents Nicholas Koechig of DCIS and Timothy Jones of USPS OIG.

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    Settlement

    MIL Security OSI –

  • MIL-OSI Security: Georgia CPA Sentenced in Syndicated Conservation Easement Tax Scheme

    Source: United States Attorneys General 7

    Defendant Helped Clients File Tax Returns Claiming $14M in False Deductions, Causing Nearly $5M in Loss to the IRS

    A Georgia accountant was sentenced today to 28 months in prison for his role in the promotion and sale of abusive syndicated conservation easement tax shelters.

    According to court documents and statements made in court, Herbert Lewis was a CPA and return preparer at an Atlanta-based accounting firm. Beginning at least in 2014 and through at least 2019, Lewis promoted and sold tax deductions to his wealthy clients in the form of units in illegal syndicated conservation easement tax shelters organized and created by co-defendants Jack Fisher, James Sinnott and others.

    According to court documents and statements made in court, Lewis also knew that, contrary to law, the transactions related to these illegal tax shelters lacked economic substance, that his wealthy clients participated only to obtain a tax deduction and that his clients received only a tax benefit for their participation in the shelters. For example, the scheme entailed the creation of partnerships that would purchase land and land-owning companies and then donate conservation easements over that land or the land itself. A client who purchased units in one of these partnerships had a “vote” ostensibly on what to do with the land the partnership owned. However, Lewis knew that the vote held by the partnership each year was just for optics and that the land invariably would be donated largely as a conservation easement.

    In some cases, in order to make it appear that his clients had joined the partnerships before the date of the conservation easement donation, which was necessary to claim the tax benefits, Lewis also instructed and caused his clients to falsely backdate documents — such as subscription agreements and checks — related to the partnerships. In 2019 alone, Lewis assisted 15 clients with claiming false deductions on their 2018 returns.

    In total, Lewis assisted in the preparation of tax returns that claimed nearly $14 million in false deductions based on backdated documents, causing a tax loss to the IRS of nearly $5 million.   

    Lewis earned over $1 million in commissions for his role in promoting and selling the illegal tax shelters to clients. Lewis also concealed the amount of commissions he had earned from selling units in these shelters by not fully reporting the commissions on his personal returns and instead fraudulently reporting commission income he had earned as income on the tax returns of nominee entities in his children’s names.

    In addition to his prison sentence, U.S. District Court Judge Timothy C. Batten Sr. for the Northern District of Georgia ordered Lewis to serve three years of supervised release and to pay $4,878,990.90 in restitution.

    Nine additional defendants have previously pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme. These other defendants include appraiser Walter Douglas “Terry” Roberts, accountant Stein Agee, CPA Corey Agee, CPA Ralph Anderson, CPA James Benkoil, CPA Victor Smith, CPA William Tomasello, CPA and attorney Randall Lenz and attorney Vi Bui.

    Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia and IRS Criminal Investigation Chief Guy Ficco made the announcement. They also thanked U.S. Attorney Dena J. King for the Western District of North Carolina for her office’s assistance.

    IRS Criminal Investigation and the U.S. Postal Inspection Service investigated the case.

    Trial Attorneys Richard M. Rolwing, Parker Tobin, Jessica Kraft and Nicholas J. Schilling Jr. of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the Northern District of Georgia, are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: Jury Convicts San Diego Man in $35 Million Dollar Securities Fraud and COVID-Relief Fraud Scheme

    Source: Office of United States Attorneys

    SAN DIEGO – After an eight-day trial, a federal jury has convicted Denny Thakorbhai Bhakta on all 25 counts of securities fraud, bank fraud and money laundering in connection with a $35 million dollar investment fraud scheme and COVID-relief fraud scheme.

    Bhakta’s uncle, who was swindled out of $4.5 million, testified during the trial that he came to the U.S. as an immigrant, with only a suitcase and $8 in his pocket, and because of the defendant, he “lost everything he had worked for in 57 years in America. Everything.” Bhatka’s fraud scheme targeting numerous victims, including a childhood friend who lost hundreds of thousands of dollars; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; a cousin who lost $40,000; and an 88-year-old investor who was defrauded out of  $50,000.

    “This sophisticated scheme unraveled after several victims came forward and exposed the fraud,” said U.S. Attorney Tara McGrath. “Many of the victims are people who represent the best of us—hard working, honest Americans who made investments based on a trusted relationship. The jury’s verdict is a resounding affirmation that justice will prevail over deceit.”

    The evidence at trial showed Bhakta solicited investors in his companies Fusion Hotel Management LLC and Fusion Hospitality Corporation (collectively “Fusion”). Between at least 2016 and up to 2021, Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines and other companies at a higher price for a significant profit. To support these lies, Bhakta provided fabricated bank statements, fake contracts, and profit and loss statements purporting to show millions in revenue and profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money he obtained from investors for gambling, to make Ponzi-style payments to other investors, and to pay for Bhakta’s personal expenses, including a Mercedez-Benz S-Class and a Porsche 911 Turbo S.

    During the trial, prosecutors introduced evidence that Bhakta was flown into Las Vegas on the Wynn private jet and in just one 7.5-hour gambling binge in 2018, Bhakta lost $1 million at the Wynn Las Vegas. Through casino records, prosecutors demonstrated how Bhakta repeatedly took investors’ money straight to casinos and gambled (and lost) millions of dollars of investor money.

    As prosecutors argued at trial, in 2020, Bhakta doubled down on the fraud. Through the Paycheck Protection Program (“PPP”), Bhakta applied for 18 separate PPP loans totaling $4.4 million. To fraudulently obtain the PPP loans, and unbeknownst to his victim/investors, Bhakta created fake W-2 and other IRS documents and used the names and personally identifying information of his victim-investors to claim them as employees of Fusion and other entities under Bhakta’s control.  Bhakta used the more than $4.4 million he received in PPP loans to keep the Ponzi scheme going and to continue gambling and losing money at casinos.

    Bhakta was remanded into custody after the jury’s verdict. A sentencing hearing is set for January 25, 2025, at 9:00 a.m. in Courtroom 4D.

    This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Eric Olah.

    The Securities and Exchange Commission has also take civil action against the defendant.

    DEFENDANTS                                             Case Number 21cr3352-JLS                            

    Denny Thakorbhai Bhakta                             Age: 42                                   San Diego, CA

    SUMMARY OF CHARGES

    Securities Fraud—Title 15, U.S.C. §§ 78j(b), 78ff; Title 17, C.F.R. § 240.10b-5

    Maximum penalty:  Twenty years in prison and $5 million fine

    Bank Fraud—Title 18, U.S.C., Section 1344(2)

    Maximum penalty:  Thirty years in prison and $1 million fine

    Money Laundering– Title 18, U.S.C., Section 1957

    Maximum penalty: Ten years in prison and fine twice the amount of the criminally derived property involved in the transaction

    INVESTIGATING AGENCIES

    Federal Bureau of Investigation

    U.S. Securities and Exchange Commission, Los Angeles Regional Office

    MIL Security OSI –

  • MIL-OSI Security: Marathon County Man Sentenced for Illegally Possessing a Firearm

    Source: Office of United States Attorneys

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Shawn Hignite, Sr., 50, Weston, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 3 years in federal prison for possessing a firearm as a felon. The prison term will be followed by 3 years of supervised release. Hignite pleaded guilty to this charge on August 1, 2024.

    On January 30, 2024, police responded to a domestic incident involving a gunshot. When they arrived, police made contact with Hignite, who initially denied there was a gunshot. Police later obtained a search warrant and located a loaded handgun inside the house and a spent shell casing in the backyard. Hignite later admitted that the gun belonged to him and that he fired it that night. Hignite is legally prohibited from possessing firearms or ammunition due to prior felony convictions.

    At sentencing, Judge Conley acknowledged the dismal history of Hignite consuming alcohol and committing crimes. He noted that Hignite’s last 30 years have been plagued by poor decision making with either a fascination or compulsion with possessing firearms. Judge Conley expressed disappointment with the pattern of firearms being present in each of Hignite’s prior offenses. He also expressed hope that the sentence would deter Hignite from committing offenses in the future.

    The charge against Hignite was the result of an investigation conducted by the Federal Bureau of Investigation, Everest Metro Police Department, Rothschild Police Department, and Marathon County Sheriff’s Department. The ATF Madison Crime Gun Task Force also investigated the case. The task force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. Assistant U.S. Attorney Steven Ayala prosecuted this case.

    This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.

    MIL Security OSI –

  • MIL-OSI Security: Madison Man Sentenced to 3 Years for Illegally Possessing a Firearm

    Source: Office of United States Attorneys

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Tyez D. D. Boyd, 27, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 3 years in federal prison for possessing a firearm as a felon. The prison term will be followed by 3 years of supervised release. Boyd pleaded guilty to this charge on August 14, 2024.

    On November 17, 2022, Madison Police Department officers stopped a vehicle in Madison on suspicion that its occupants were engaged in drug trafficking. Officers had intercepted a phone call earlier in the day between the front seat passenger, Davonte King, and a known fentanyl pill dealer setting up a drug deal. Tyez Boyd was a passenger in the rear seat.

    Officers took King out of the vehicle and found he was in possession of fentanyl pills, cocaine, and over $1,000 in cash. Officers also found a loaded Taurus 9mm handgun under the front passenger seat where King had been seated. King is prohibited from legally possessing firearms because of a prior felony conviction.

    Officers searched Boyd after he got out of the vehicle and found a loaded Kahr .45 caliber handgun in his pocket. Boyd is prohibited from legally possessing firearms because of multiple prior felony convictions. At the time of the stop, Boyd was on state probation for two cases, one involving a strangulation conviction and one involving a domestic violence conviction. Boyd also had three open criminal cases at the time, each of which involved acts of violence. Boyd had two active warrants for his arrest as well. His state probation has since been revoked and he was sentenced to 18 months in state prison on January 27, 2023.

    At sentencing, Judge Peterson said Boyd’s possession of a firearm was dangerous by itself, especially when he was carrying it into a dangerous situation with a drug trafficker. Judge Peterson found Boyd’s case was aggravated by his criminal history, which included instances of domestic violence, as well as his history of noncompliance while on supervision. Finally, Judge Peterson said this crime deserved a 4-year sentence but reduced that sentence for time he had already served on his multiple state revocation sentences.

    Co-defendant Davonte King pleaded guilty to possessing fentanyl intended for distribution and possessing a firearm in furtherance of a drug trafficking crime and was sentenced by Judge Peterson on September 5, 2024, to 7 years in federal prison.

    The charges against Boyd and King were the result of an investigation conducted by the U.S. Postal Inspection Service, Drug Enforcement Administration, IRS Criminal Investigations, Wisconsin Department of Justice Division of Criminal Investigation, and Dane County Narcotics Task Force. The ATF Madison Crime Gun Task Force also investigated the case. The task force consists of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. The Dane County District Attorney’s Office assisted with the investigation. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.

    This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.

    MIL Security OSI –

  • MIL-OSI Security: Waunakee Man Sentenced to 12 Years for Possessing Methamphetamine Intended for Distribution

    Source: Office of United States Attorneys

    Larry D. Williamson used a private plane to bring 19 pounds of methamphetamine and 200,000 fentanyl pills into Dane County

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Larry D. Williamson 36, Waunakee, Wisconsin was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 12 years in federal prison for possessing 500 or more grams of methamphetamine intended for distribution. Williamson pleaded guilty to this charge on June 18, 2024. The prison term will be followed by 8 years of supervised release.

    On the evening of February 8, 2024, Williamson and his codefendant Corvalis Stewart landed a rented Cessna 172 aircraft at the Middleton Municipal Airport, in Middleton, Wisconsin. Williamson was a private pilot who had rented the aircraft to fly to Phoenix, Arizona, to pick up drugs. Stewart was the passenger.

    Federal and state law enforcement received information about the flight and about Williamson and Stewart’s suspicious behavior in Arizona. Law enforcement tracked the aircraft as it returned to Middleton and landed at approximately 10:55 p.m. Williamson and Stewart got out of the airplane and walked to the parking lot. Stewart was carrying three bags which he put in the back of his vehicle. Law enforcement detained the men and searched the bags.

    Two of the bags contained 19 pounds of methamphetamine, and in one were travel receipts from a recent trip that Williamson took. The third bag contained approximately 200,000 fentanyl pills known on the street as M30’s, which are counterfeit Oxycodone pills. This was the largest fentanyl seizure in Dane County, with an estimated street value of $2,000,000.

    “This was a brazen effort to introduce a large quantity of methamphetamine and thousands of deadly fentanyl pills into our Dane County community,” said Timothy M. O’Shea, U.S. Attorney for the Western District of Wisconsin. “I commend our federal and state law enforcement partners for their coordinated efforts to quickly identify the suspicious flight and apprehend the individuals involved.”

    “The sentencing of these drug traffickers is a decisive victory in our fight against organized crime. Their brazen attempts to evade justice by crossing state lines in an airplane only highlight their disregard for the law. This outcome underscores our unwavering commitment to dismantle such networks,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “The success of this operation was made possible through the tireless efforts and cooperation of local law enforcement agencies. Together, we have shown that no matter the lengths criminals go to escape justice, they will be held accountable.”

    At sentencing, Judge Peterson characterized the amount of fentanyl involved in the case as staggering. Noting the large quantity and the especially dangerous nature of fentanyl, Judge Peterson determined that a significant sentence was warranted. Judge Peterson also found that Williamson was an active courier who solicited drug trips to make more money.

    Williamson’s co-defendant, Corvalis Stewart, pleaded guilty on September 11, 2024, to possessing 400 or more grams of fentanyl intended for distribution. He is scheduled to be sentenced on December 4, 2024, and faces a minimum of 10 years in prison.

    The charges against Williamson and Stewart were the result of an investigation conducted by Homeland Security Investigations, Dane County Narcotics Task Force, and the Middleton Police Department, with the assistance of the Air Marine Operations Center in Riverside, California. Assistant U.S. Attorney Corey Stephan prosecuted this case. 

    MIL Security OSI –

  • MIL-OSI Security: RM of Tache — Update – St. Pierre-Jolys RCMP respond to fatal collision

    Source: Royal Canadian Mounted Police

    After further investigation into this collision by an RCMP Forensic Collision Reconstructionist, RCMP have confirmed that the eastbound car, being driven by the 25-year-old male, had crossed over the center line and side-swiped the eastbound SUV, being driven by the 59-year-old male.

    The mechanical condition of the car was not a factor in the collision.

    St-Pierre-Jolys RCMP continue to investigate.

    On October 23, 2024, at approximately 12:30 am, St-Pierre-Jolys received a report of a collision on Highway 1 and Provincial Road 206. When officers arrived on scene, one vehicle was in the south ditch and two vehicles were on the highway.

    Investigation determined a car and a SUV were travelling eastbound on Highway 1 and were side-by-side when the passenger tire of the car, with the control arm and other mechanical parts, came off and struck the SUV, which was travelling in the south lane. This caused the car to come to rest on the roadway and immediately catch fire. The 25-year-old male driver from Calgary was able to exit the vehicle. He was transported to local hospital with non-life threatening injuries.

    After the SUV was struck by the tire and parts from the car, the SUV entered the ditch and rolled. The 59-year-old male driver, from Steinbach, was pronounced deceased on scene. The 45-year-old male passenger, from the RM of Hanover, was transported to local hospital with non-life threatening injuries.

    A third vehicle was travelling close behind the collision and struck the tire component of the car, which was left on the highway after the collision, making the vehicle inoperable. The 28-year-old female driver, from Kenora, Ontario, was transported to hospital with minor physical injuries.

    St-Pierre-Jolys RCMP, along with an RCMP Forensic Collision Reconstructionist, continue to investigate.

    MIL Security OSI –

  • MIL-OSI USA: Congressman Dan Goldman Requests Information on Bank of America Decision to Reverse Ban on Financing Assault-Weapons Manufacturers

    Source: United States House of Representatives – Congressman Dan Goldman (NY-10)

    Following Legislation Passed in Texas and Florida, Bank of America Backtracked Implementation of Landmark Financing Ban

    Read the Letter Here

    Washington, DC – Congressman Dan Goldman (NY-10) joined Congressman Sean Casten (IL-06) and 50 of his Democratic colleagues in sending a letter to Bank of America CEO and Chair of the Board Brian Moynihan requesting information regarding Bank of America’s decision to reverse their ban on financing assault-style gun manufacturers, who design weapons frequently used by perpetrators of mass shootings.

    “We write with disappointment regarding the recent news that Bank of America has reversed its ban on financing assault-style gun manufacturers in response to pressure from Republican-led states, such as Florida and Texas. When the second-largest bank in the country backtracks on gun violence prevention, it sends a message to the entire industry: it’s permissible for other financial institutions to put short-term politics over the protection of American lives,” the Members wrote.

    In 2018, following the Marjorie Stoneman Douglas High School mass shooting, Bank of America announced it would no longer finance military-style firearms for civilian use. Bank of America described the financing of these gunmakers as “contrary to our values, operating principles and Code of Conduct.”

    However, in 2021, Texas passed a law restricting companies that discriminate against firearms entities from doing business with the state. In January 2024, Florida passed an anti-ESG law which required banks that accept state or local funds to verify they don’t “politically discriminate.”

    In response, Bank of America weakened its policy, stating that financing military-style firearms would be subject to an “enhanced due-diligence process,” directly contradicting their 2018 proposal. The members contend that this policy change unnecessarily puts lives at risk.

    “The strong positions by Bank of America in 2018 likely saved lives. Your retreat in recent years strikes us as situational ethics. Perhaps you fear the political risk of alienating certain politicians. We would suggest that pales in comparison to the fear felt by a classroom full of kids looking down the barrel of an assault rifle. The least you could do is show a fraction of the courage that too many children are asked to show in a country awash in these weapons of war,” the Members continued.

    The members concluded asking the following questions regarding Bank of America’s policy change:

    1. “Since 2018, what steps has Bank of America taken to reverse its prior policies and decisions that were intended to reduce gun violence?

    2. Please explain why Bank of America now deems it appropriate to finance assault-style gun manufacturers.

    3. Please detail how Bank of America implemented the enhanced due diligence standard and review process for clients and transactions involving the manufacture of military-style firearms for civilian use, including:

      1. What “specialized industry knowledge” did the internal subject matter experts (SMEs) possess that contributed to the development of this policy?

        1. What are their professional backgrounds?

      2. Please provide specifics about the “clear process” for review with senior executive checkpoints, escalation routines, and risk management considerations, including how Bank of America will assess the reputational and litigation risk associated with specific, potential clients.

      3. What factors would cause Bank of America to decide to provide financing or underwriting to a manufacturer of military-style firearms for civilian use?

    4. Since this enhanced due diligence process was put in place, what, if any, financing or underwriting has Bank of America provided to firearm manufacturers, including those specified below?

      1. Sturm Ruger & Company (RGR)

      2. Smith and Wesson (SWBI)

      3. Axon (AXON:US)

      4. Sportsman’s Warehouse Holdings (SPWH)

      5. Big Five Sporting Goods Corporation (BGFV)”

    Read the letter here or below:

    Dear Mr. Moynihan,

    We write with disappointment regarding the recent news that Bank of America has reversed its ban on financing assault-style gun manufacturers in response to pressure from Republican-led states, such as Florida and Texas. When the second-largest bank in the country backtracks on gun violence prevention, it sends a message to the entire industry: it’s permissible for other financial institutions to put short-term politics over the protection of American lives.

    In 2018, following the Marjorie Stoneman Douglas High School mass shooting, Bank of America announced that it would no longer finance military-style firearms for civilian use. In an interview that April, Vice Chair Anne Finucane stated that Bank of America wants to contribute in “any way we can” to reduce mass shootings. Specifically, Ms. Finucane said: “It’s our intention not to finance these military-style firearms forcivilian use” on a “go forward basis.” At Bank of America’s annual shareholder meeting that same month, one conservative activist said the bank was “willfully giving up money.” You responded to shareholders that the policy change was prompted in part because more than 150 Bank of America employees “directly lost a relative in the shootings in the last couple [of] years.”

    Remington, Vista Outdoor, and Sturm, Ruger & Co. were three of your clients affected by this policy change in 2018. Remington made the Bushmaster assault weapon that was used in the 2012 mass shooting that killed 26 children and educators at Sandy Hook Elementary School in Newtown, Connecticut. Remington had been a client of Bank of America since at least 2012 until the bank cut ties—but only after contributing $43 million to a lending package that helped Remington exit bankruptcy in 2018. Vista Outdoor sold rifles and shotguns, including AR-15-style weapons, until 2019, when Bank of America helped finance Vista’s acquisition of another sporting goods company in 2016. Lastly, Sturm Ruger makes the AR-556 pistol, which resembles an AR-15-style rifle but has been designed to circumvent existing gun laws. This weapon was used in the 2021 mass shooting that killed ten people at a King Soopers supermarket store in Boulder, Colorado. In 2013, Bank of America extended a $25 million line of credit to Sturm Ruger. Between 2012 and 2018, Bank of America issued $273.6 million in bonds and loans to these firearm companies. To be clear, none of these guns are designed for hunting or for self-defense. They are designed to kill large numbers of people as quickly as possible.

    In 2019, Bank of America described the financing of these gunmakers as “contrary to our values, operating principles and Code of Conduct” in its Environmental and Social Risk Policy Framework. In 2022, Bank of America reiterated that it “will not currently finance the manufacture of military-style firearms for non-law enforcement, non-military use.” Then in November 2023, Bank of America assured members of Congress that its “lines of business continue to follow this policy.”

    However, in December 2023, Bank of America weakened its firearms lending policy in its updated policy framework, stating that financing military-style firearms would be subject to an “enhanced due diligence process” and review by the Senior-level Risk Committee. This directly contradicts Vice Chair Finucane’s 2018 statement that “going forward we will not finance the manufacture of these firearms.”

    Recent reports suggest that this policy change was prompted by anti-ESG laws in states like Florida and Texas. In 2021, Texas passed a law restricting companies that “discriminate” against firearms entities from doing business with the state. Specifically, it requires that government contracts include a written verification that the company does not and will not “have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association.”18 In October 2023, shortly before Bank of America changed its policy, the Texas Attorney General issued an advisory urging government entities to closely review these written verifications and consider other “red flags,” citing Bank of America’s approach towards certain firearm entities. More recently, in January 2024, Florida announced that it will begin enforcing violations of an anti- ESG law passed last year, which requires banks that accept state or local funds to verify that they don’t “politically discriminate.” In particular, these requirements prohibit banks from denying services on the basis of enumerated factors, including a company’s “engagement in the lawful manufacture, distribution, sale, purchase, or use of firearms or ammunition.” In May 2024, Florida enacted a law, effective July 1, 2024, that provides for a customer complaint process for alleged violations of these requirements and expands the scope to include non-Florida chartered banks.

    The strong positions by Bank of America in 2018 likely saved lives. Your retreat in recent years strikes us as situational ethics. Perhaps you fear the political risk of alienating certain politicians. We would suggest that pales in comparison to the fear felt by a classroom full of kids looking down the barrel of an assault rifle. The least you could do is show a fraction of the courage that too many children are asked to show in a country awash in these weapons of war.

    To that end, we seek clarification on this policy change and ask that you answer the following questions by August 8, 2024:

    1. Since 2018, what steps has Bank of America taken to reverse its prior policies and decisions that were intended to reduce gun violence?

    2. Please explain why Bank of America now deems it appropriate to finance assault-style gun manufacturers.

    3. Please detail how Bank of America implemented the enhanced due diligence standard and review process for clients and transactions involving the manufacture of military-style firearms for civilian use, including:

      1. What “specialized industry knowledge” did the internal subject matter experts (SMEs) possess that contributed to the development of this policy?

        1. What are their professional backgrounds?

      2. Please provide specifics about the “clear process” for review with senior executive checkpoints, escalation routines, and risk management considerations, including how Bank of America will assess the reputational and litigation risk associated with specific, potential clients.

      3. What factors would cause Bank of America to decide to provide financing or underwriting to a manufacturer of military-style firearms for civilian use?

    4. Since this enhanced due diligence process was put in place, what, if any, financing or underwriting has Bank of America provided to firearm manufacturers, including those specified below?

      1. Sturm Ruger & Company (RGR)

      2. Smith and Wesson (SWBI)

      3. Axon (AXON:US)

      4. Sportsman’s Warehouse Holdings (SPWH)

      5. Big Five Sporting Goods Corporation (BGFV)”

    We look forward to your prompt response either in writing or via a briefing and the opportunity to continue to work together to stem the tragedies caused by gun violence and make our communities safer. Thank you foryour attention to this matter.

    ###

    MIL OSI USA News –

  • MIL-OSI United Kingdom: Growth at the heart of Foreign Secretary’s visit to Nigeria and South Africa

    Source: United Kingdom – Executive Government & Departments 3

    Foreign Secretary David Lammy visits Nigeria and South Africa.

    • Economic growth to underpin work in both Nigeria and South Africa, as Foreign Secretary agrees to develop a new UK-South Africa Growth Plan and a new Strategic Partnership with Nigeria.
    • Climate continues to top the agenda of Foreign Secretary’s engagement as he visits Earthshot+ event in Cape Town.
    • Foreign Secretary sets out “Growth is the core mission of this government and will underpin our relationships in Nigeria, South Africa and beyond.”

    David Lammy will begin a visit to Nigeria and South Africa today (3rd November), his first trip to the African continent as Foreign Secretary and the first to visit South Africa since 2013.

    Committing to a fresh approach to Africa that works productively from Morocco to Madagascar, the Foreign Secretary will announce the start of a five-month consultation process, to ensure African voices inform and sit at the very heart of the UK’s new approach to the continent. Accommodating the diverse needs and ambitions of 54 countries, the consultation will guarantee the UK’s relationships across Africa are based on mutual respect and partnership.

    Foreign Secretary David Lammy said:

    Africa has huge growth potential, with the continent on track to make up 25% of the world’s population by 2050.  

    Our new approach will deliver respectful partnerships that listen rather than tell, deliver long term growth rather than short term solutions and build a freer, safer, more prosperous continent. I want to hear what our African partners need and foster relationships so that the UK and our friends and partners in Africa can grow together. 

    Growth is the core mission of this government and will underpin our relationships in Nigeria, South Africa and beyond.

    This will mean more jobs, more prosperity and more opportunities for Brits and Africans alike.

    In Nigeria, the Foreign Secretary will sign a modern and progressive Strategic Partnership – the first of its kind between the UK and Nigeria. This new dialogue will cover the breadth of the UK-Nigeria areas of shared cooperation from growth and jobs to national security, tackling the climate and nature crisis to strengthening our people-to-people ties. 

    Nigeria will be the world’s fifth largest economy by 2075 – the Foreign Secretary will advocate for further collaboration on mutual growth via the UK-Nigeria Enhanced Trade and Investment Partnership, signed earlier this year. This partnership is the key vehicle for driving trade and market access between the UK and Nigeria and plays a vital role in the UK’s growth mission.

    The Foreign Secretary will advocate for further trade and climate collaboration between Nigeria and the UK in high level meetings with President Tinubu, Foreign Minister Tuggar and Lagos Governor Sanwo-Olu. 

    Building on President Tinubu’s macro-economic reforms, the Foreign Secretary will announce a diverse Technical Assistance package to the Nigerian Ministry of Finance, offering British expertise from the Bank of England, HMRC and others to help continue to modernise and diversify the Nigerian economy. Catalysing reform across Nigeria will create further opportunities within the flourishing Nigerian economy for British businesses – generating growth, jobs and incomes for Brits and Nigerians.  

    Travelling on to South Africa, David Lammy will agree to develop a new UK-South Africa Growth Plan. South Africa is our largest trading partner on the continent and this plan will allow trade to flourish even more through collaboration on market access, a new UK Trade Partnership programme to boost South Africa exports, and a new programme to increase the number of agricultural jobs in rural South Africa. This will simultaneously boost trade for Brits whilst bolstering opportunities within South Africa.

    At the biennial UK-South Africa bilateral forum the Foreign Secretary and Foreign Minister Lamola will refresh the Comprehensive Strategic Partnership to 2030 – raising joint ambition on climate, nature, trade and security and committing to UK-SA cooperation for the next two years on trade and investment, energy transition, and security. 

    South African exports to the UK supported over 137,000 jobs in 2020 – the Foreign Secretary will boost this with the renewal of a risk-sharing partnership between British International Investment and Standard Chartered to provide trade finance for SMEs and corporates operating across Africa and Asia.

    No growth can be truly inclusive nor effective unless it is green. In both Nigeria and South Africa, the Foreign Secretary will build on the momentum from his Kew Lecture to encourage green growth and climate cooperation. In South Africa the Foreign Secretary will celebrate climate innovation at the Earthshot+ thought leadership conference. Founded by Prince William, The Earthshot Prize is a global environmental prize and platform designed to discover, accelerate and scale ground-breaking solutions to repair and regenerate the planet. The Foreign Secretary will speak with these innovators to understand how the UK can support and help channel finance to where biodiversity, climate risk and energy needs are greatest. He will announce a further Biodiversity Challenge Fund to help tackle the illegal wildlife trade and technical assistance to support South Africa’s energy transition.

    Media enquiries

    Email newsdesk@fcdo.gov.uk

    Telephone 020 7008 3100

    Contact the FCDO Communication Team via email (monitored 24 hours a day) in the first instance, and we will respond as soon as possible.

    Updates to this page

    Published 3 November 2024

    MIL OSI United Kingdom –

  • MIL-OSI Asia-Pac: SITI to visit Canada

    Source: Hong Kong Government special administrative region

    SITI to visit Canada
    SITI to visit Canada
    ********************

         The Secretary for Innovation, Technology and Industry, Professor Sun Dong, will depart for a visit to Canada this evening (November 3). He will be going to Toronto, Ottawa and Waterloo to strengthen ties and co-operation between Hong Kong and Canada in areas such as innovation and technology (I&T).     During his visit to Canada, Professor Sun will meet with leaders of the local I&T industry and technology enterprises, and engage in exchanges with Hong Kong young people studying there. He will also deliver a keynote speech at the Seminar on Life Science and Global Health co-organised by the Hong Kong-Canada Business Association (Ottawa Chapter) and Invest Hong Kong. Moreover, he will visit local universities, research institutes and I&T parks.     Professor Sun will return to Hong Kong in the morning of November 8. During his absence, the Under Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, will be the Acting Secretary for Innovation, Technology and Industry.

     
    Ends/Sunday, November 3, 2024Issued at HKT 11:00

    NNNN

    MIL OSI Asia Pacific News –

  • MIL-OSI China: Users of Chinese-invested expressway in Cambodia top 10 mln

    Source: China State Council Information Office

    An aerial drone photo shows a section of the Phnom Penh-Sihanoukville Expressway in Kampong Speu province, Cambodia. (Cambodian PPSHV Expressway Co., Ltd./Handout via Xinhua)

    The number of users of the Chinese-invested Phnom Penh-Sihanoukville Expressway in Cambodia had hit 10 million during the first two years of its operation.

    The Cambodian PPSHV Expressway Co., Ltd., which is the operator of the 187-km expressway, marked the motorway’s second anniversary on Friday, awarding a gift to the 10 millionth user of the road.

    According to the company, Chhum Sophearun, a 42-year-old taxi driver, became the 10 millionth user of the Phnom Penh-Sihanoukville Expressway on Oct. 2 and was given free travel for one year on the expressway.

    Speaking at the event, Cambodian Minister of Public Works and Transport Peng Ponea said the expressway, the first of its kind in Cambodia, has become a key strategic route, linking the first economic powerhouse of Phnom Penh with the second economic powerhouse of the coastal province of Sihanoukville.

    “This expressway has been providing great benefits to Cambodia’s socio-economic development and tourism,” he said. “It has played a crucial role in improving the efficiency of travel and goods transport.”

    Ponea said the motorway was one of the major achievements in Cambodia under Belt and Road cooperation, in addition to the Sihanoukville Special Economic Zone, the Siem Reap Angkor International Airport, and the Morodok Techo National Stadium.

    “These achievements are a solid testament to our joint efforts in building a Cambodia-China community with a shared future,” he said.

    Chinese Ambassador to Cambodia Wang Wenbin said the expressway was a landmark project of China-Cambodia cooperation under the BRI.

    “It is a vivid example of China-Cambodia joint efforts in building a high-quality, high-level and high-standard community with a shared future in a new era,” he said.

    The ambassador said the expressway has significantly contributed to creating job opportunities, promoting regional development and improving the well-being of local people.

    Wang added that he had traveled on the expressway many times and was impressed with the road’s high quality and sound management.

    Speaking to Xinhua at the event, Sophearun said he was excited to be contacted by an expressway staff member to inform that he had become the 10 millionth expressway user.

    “Usually, I travel on the expressway from Phnom Penh to Sihanoukville and vice versa, carrying tourists from Europe, China or Indonesia,” he said.

    Sophearun said traveling on the expressway saves a lot of time, as it takes only two hours to go from Phnom Penh to Sihanoukville, while traveling on the National Road 4 takes up to five hours at the same distance.

    “Traveling on the old road (National Road 4) takes a lot of time and costs a lot of money on fuel and car maintenance due to uneven road surface, so in sum, the expense for traveling on the old road is higher than that on the expressway,” he said.

    “The expressway is the best choice,” he said. “I would like to urge all drivers to use this expressway because it is quite safe and very convenient to travel.”

    An aerial drone photo taken on Sept. 25, 2024 shows a toll station of the Phnom Penh-Sihanoukville Expressway in Phnom Penh, Cambodia. (Cambodian PPSHV Expressway Co., Ltd./Handout via Xinhua)

    Invested by the China Road and Bridge Corporation under the build-operate-transfer (BOT) model in the amount of 2 billion U.S. dollars, the Phnom Penh-Sihanoukville Expressway is the first-ever freeway in Cambodia and is the largest single project under the Belt and Road Initiative.

    With two lanes for traffic in each direction plus an emergency lane on each side, vehicles can reach their destinations within two hours through the expressway instead of five hours on National Road 4.

    Teng Sokhen, a 25-year-old toll collector at the Phnom Penh-Sihanoukville Expressway, said the expressway has provided a safe, convenient, and efficient travel option for all drivers.

    “I’m really happy to work at this expressway because this road has contributed to Cambodia’s social development, economic growth and tourism, and has provided a lot of benefits to the people of Cambodia,” she told Xinhua.

    “As a staff member, I’m glad to be a contributor to the society,” she said.

    According to Sokhen, more than 10,000 vehicles ply the expressway on average per day.

    MIL OSI China News –

  • MIL-OSI Australia: UPDATE: Call for information – Disturbance – Palmerston

    Source: Northern Territory Police and Fire Services

    Northern Territory Police no longer hold concerns for the welfare of a 38-year-old Palmerston man.

    He was located safe and well by police a short time ago.

    NT Police would like to thank the public for their assistance.

    Investigations into the disturbance are ongoing, and anyone with information is urged to contact police on 131 444 or Crime Stoppers via 1800 333 000 or https://crimestoppersnt.com.au/.

    MIL OSI News –

  • MIL-OSI Global: Big companies profit from poverty but aren’t obliged to uphold human rights. International law must change – scholar

    Source: The Conversation – Africa – By Bonita Meyersfeld, Associate Professor, University of the Witwatersrand

    There is some disagreement among legal practitioners and scholars about whether corporations have duties under international law.

    Many argue that only states are bound by international law, and it is those states which are obliged to regulate how businesses operate within their borders. Corporations have only a voluntary responsibility to avoid committing human rights violations through their operations.

    I have been doing research in the area of corporate accountability for human rights violations since 2006. My most recent paper looks at the role of multinational corporations (multinationals) in benefiting from and perpetuating structural poverty in the global south.

    I argue that international law can no longer exempt corporations from liability for human rights violations, including those arising from poverty. Under certain circumstances, corporations should have duties under international law to ensure human rights are fulfilled. I argue that this is particularly true when it comes to socio-economic rights such as the rights to housing, education, food, water and healthcare.

    International human rights law must be developed to impose duties directly on multinational corporations to alleviate poverty in the developing countries where they operate.

    This is not an absolute duty – it would only arise in certain circumstances and for specific periods of time, as I show in my paper.

    Poverty and corporations

    Some estimate that as many as 1.3 billion people live in poverty – more than 10% of the world’s population, the vast majority in the global south.

    Poverty is also deadly. It is estimated that at least 21,300 people die every day as a result of poverty and inequality. Poverty is a human rights violation, affecting the rights to dignity, life, food and water.

    Businesses have a long history of profiting from human rights abuses. Finance and transport companies have acknowledged ties to the slave trade. European banks reportedly assisted South Africa’s apartheid government to procure arms.



    Read more:
    UK-Rwanda migrant deal challenges international protection law

    Even when they are not directly responsible for human rights violations, multinational corporations may be complicit. Multinationals based in the global north tend to exploit developing countries for their cheap labour, natural resources and weak regulatory frameworks. In other words, corporations benefit from poverty.

    International law

    In 2005, Professor John Ruggie was appointed as the United Nations secretary-general’s special representative on the issue of human rights and transnational corporations and other business enterprises. He developed the United Nations Guiding Principles on Business and Human Rights. This framework adopts the position that only states are subjects and have duties under international human rights law.

    The UN guiding principles are organised around three pillars, known as Protect, Respect and Remedy. The first pillar relates to states’ obligations to uphold human rights. It includes the duty to regulate businesses to ensure they do not violate rights through their operations. The second pillar refers to corporations’ responsibility to respect human rights. This is voluntary and not a legal obligation. The third pillar ensures that victims of human rights violations have access to effective remedies.

    This framework relies on three factors: states which have the interests of their citizens at heart, corporations complying with human rights standards, and effective remedial systems. If all three work together, then the UN guiding principles can address corporate accountability for rights violations.

    In practice, however, this is not the case. Many states, particularly those in the developing world with high levels of poverty, rely on foreign investment. This creates a power imbalance when negotiating with large multinational corporations. Multinationals are able to demand favourable investment conditions, including relaxing laws that might protect human rights.



    Read more:
    Russia’s invasion of Ukraine is illegal under international law: suggesting it’s not is dangerous

    Under the UN guiding principles, if states do not impose obligations on corporations to comply with human rights, they do not have such obligations.

    Next steps

    Not all corporations should have the same duties as states. I propose a set of factors that would determine when a corporation might have a duty under international human rights law to fulfil socio-economic rights. These factors are:

    • the extent of the violation

    • the position or vulnerability of the victim

    • the urgency of the situation

    • whether the corporation is the only actor that can fulfil the right.

    For example, let us imagine a scenario in which a company operates a mine in the Central African Republic. It has built a hospital for its workers and management. Surrounding the mining operations are indigent communities who resided in the area before the operations began.

    One day, a child from one of the settlements is knocked over by a car. Her injuries are not life-threatening, but they are severe and the child is in terrible pain. The closest hospital is the mine-owned private hospital. There is a public hospital, but it is far away and travelling there would take time and be costly. The child’s family rushes her to the mine’s hospital for emergency treatment. Does the hospital have a legal duty to admit the child and pay for her treatment?

    Applying a combination of the factors, the answer is yes. The child is vulnerable by virtue of her age and poverty, the situation is urgent, and the mine hospital is the only entity that can fulfil the right under the circumstances.



    Read more:
    The CAR provides hard lessons on what it means to deliver real justice

    Using this framework, I argue that international human rights law should be developed to mitigate the harm of poverty in the global south, by imposing duties on corporations that benefit from poverty. Some corporations have a perverse incentive to keep communities poor. International law has a role to play in overturning this state of affairs.

    Ultimately, my proposal seeks to review what we think of as a fair and just economy. Nothing will change if only states have obligations under international law. The global economic market is neither free nor fair. It has created the most severe human rights violations of our age. International human rights law must address this.

    Bonita Meyersfeld has received funding from the National Research Foundation as part of her NRF rating.

    – ref. Big companies profit from poverty but aren’t obliged to uphold human rights. International law must change – scholar – https://theconversation.com/big-companies-profit-from-poverty-but-arent-obliged-to-uphold-human-rights-international-law-must-change-scholar-241398

    MIL OSI – Global Reports –

  • MIL-OSI Africa: Big companies profit from poverty but aren’t obliged to uphold human rights. International law must change – scholar

    Source: The Conversation – Africa – By Bonita Meyersfeld, Associate Professor, University of the Witwatersrand

    There is some disagreement among legal practitioners and scholars about whether corporations have duties under international law.

    Many argue that only states are bound by international law, and it is those states which are obliged to regulate how businesses operate within their borders. Corporations have only a voluntary responsibility to avoid committing human rights violations through their operations.

    I have been doing research in the area of corporate accountability for human rights violations since 2006. My most recent paper looks at the role of multinational corporations (multinationals) in benefiting from and perpetuating structural poverty in the global south.

    I argue that international law can no longer exempt corporations from liability for human rights violations, including those arising from poverty. Under certain circumstances, corporations should have duties under international law to ensure human rights are fulfilled. I argue that this is particularly true when it comes to socio-economic rights such as the rights to housing, education, food, water and healthcare.

    International human rights law must be developed to impose duties directly on multinational corporations to alleviate poverty in the developing countries where they operate.

    This is not an absolute duty – it would only arise in certain circumstances and for specific periods of time, as I show in my paper.

    Poverty and corporations

    Some estimate that as many as 1.3 billion people live in poverty – more than 10% of the world’s population, the vast majority in the global south.

    Poverty is also deadly. It is estimated that at least 21,300 people die every day as a result of poverty and inequality. Poverty is a human rights violation, affecting the rights to dignity, life, food and water.

    Businesses have a long history of profiting from human rights abuses. Finance and transport companies have acknowledged ties to the slave trade. European banks reportedly assisted South Africa’s apartheid government to procure arms.

    Read more: UK-Rwanda migrant deal challenges international protection law

    Even when they are not directly responsible for human rights violations, multinational corporations may be complicit. Multinationals based in the global north tend to exploit developing countries for their cheap labour, natural resources and weak regulatory frameworks. In other words, corporations benefit from poverty.

    International law

    In 2005, Professor John Ruggie was appointed as the United Nations secretary-general’s special representative on the issue of human rights and transnational corporations and other business enterprises. He developed the United Nations Guiding Principles on Business and Human Rights. This framework adopts the position that only states are subjects and have duties under international human rights law.

    The UN guiding principles are organised around three pillars, known as Protect, Respect and Remedy. The first pillar relates to states’ obligations to uphold human rights. It includes the duty to regulate businesses to ensure they do not violate rights through their operations. The second pillar refers to corporations’ responsibility to respect human rights. This is voluntary and not a legal obligation. The third pillar ensures that victims of human rights violations have access to effective remedies.

    This framework relies on three factors: states which have the interests of their citizens at heart, corporations complying with human rights standards, and effective remedial systems. If all three work together, then the UN guiding principles can address corporate accountability for rights violations.

    In practice, however, this is not the case. Many states, particularly those in the developing world with high levels of poverty, rely on foreign investment. This creates a power imbalance when negotiating with large multinational corporations. Multinationals are able to demand favourable investment conditions, including relaxing laws that might protect human rights.

    Read more: Russia’s invasion of Ukraine is illegal under international law: suggesting it’s not is dangerous

    Under the UN guiding principles, if states do not impose obligations on corporations to comply with human rights, they do not have such obligations.

    Next steps

    Not all corporations should have the same duties as states. I propose a set of factors that would determine when a corporation might have a duty under international human rights law to fulfil socio-economic rights. These factors are:

    • the extent of the violation

    • the position or vulnerability of the victim

    • the urgency of the situation

    • whether the corporation is the only actor that can fulfil the right.

    For example, let us imagine a scenario in which a company operates a mine in the Central African Republic. It has built a hospital for its workers and management. Surrounding the mining operations are indigent communities who resided in the area before the operations began.

    One day, a child from one of the settlements is knocked over by a car. Her injuries are not life-threatening, but they are severe and the child is in terrible pain. The closest hospital is the mine-owned private hospital. There is a public hospital, but it is far away and travelling there would take time and be costly. The child’s family rushes her to the mine’s hospital for emergency treatment. Does the hospital have a legal duty to admit the child and pay for her treatment?

    Applying a combination of the factors, the answer is yes. The child is vulnerable by virtue of her age and poverty, the situation is urgent, and the mine hospital is the only entity that can fulfil the right under the circumstances.

    Read more: The CAR provides hard lessons on what it means to deliver real justice

    Using this framework, I argue that international human rights law should be developed to mitigate the harm of poverty in the global south, by imposing duties on corporations that benefit from poverty. Some corporations have a perverse incentive to keep communities poor. International law has a role to play in overturning this state of affairs.

    Ultimately, my proposal seeks to review what we think of as a fair and just economy. Nothing will change if only states have obligations under international law. The global economic market is neither free nor fair. It has created the most severe human rights violations of our age. International human rights law must address this.

    – Big companies profit from poverty but aren’t obliged to uphold human rights. International law must change – scholar
    – https://theconversation.com/big-companies-profit-from-poverty-but-arent-obliged-to-uphold-human-rights-international-law-must-change-scholar-241398

    MIL OSI Africa –

  • MIL-OSI Asia-Pac: Sun Dong to visit Canada

    Source: Hong Kong Information Services

    Secretary for Innovation, Technology & Industry Prof Sun Dong will depart today on a visit to Canada, where he will stop in Toronto, Ottawa and Waterloo and seek to strengthen co-operation between Hong Kong and Canada in areas such as innovation and technology (I&T).

    Prof Sun will meet leaders of I&T enterprises in the country, and engage with Hong Kong youngsters studying there.

    He will also deliver a keynote speech at the Seminar on Life Science & Global Health, co-organised by the Hong Kong-Canada Business Association (Ottawa Chapter) and Invest Hong Kong, and visit universities, research institutes and I&T parks.

    Prof Sun will return to Hong Kong on November 8. During his absence, Under Secretary for Innovation, Technology & Industry Lillian Cheong will be Acting Secretary.

    MIL OSI Asia Pacific News –

  • MIL-OSI Australia: Trail bike rider seriously injured in West Coast crash

    Source: Tasmania Police

    Trail bike rider seriously injured in West Coast crash

    Sunday, 3 November 2024 – 8:44 pm.

    A 16-year-old male rider has received serious injuries after being involved in a trail bike crash at Four Mile Creek on the state’s west coast.
    Emergency services, including the Westpac Rescue Helicopter, responded to the incident and transferred the rider to the Royal Hobart Hospital for treatment.
    Initial investigations indicate the rider was wearing a helmet at the time of the crash.Investigations into the crash are continuing.
    Anyone with information should call Police on 131444.

    MIL OSI News –

  • MIL-OSI USA: RELEASE: SOUTH BAY REPS ANNOUNCE NEW SUNNYVALE R&D FACILITY FUNDED BY THE CHIPS AND SCIENCE ACT

    Source: United States House of Representatives – Congressman Jimmy Panetta (D-Calif)

    Santa Clara, CA —Today, Representatives Jimmy Panetta (CA-19), Ro Khanna (CA-17), co-author of the CHIPS and Science Act, Zoe Lofgren (CA-18), Ranking Member of the House Science, Space, and Technology Committee, and Anna Eshoo (CA-16) announced that the National Semiconductor Technology Center (NSTC), a public-private consortium operated by the Department of Commerce and Natcast, will open a new CHIPS for America Collaboration and Design Facility in Sunnyvale to support research and design innovation and efforts to expand the semiconductor workforce. 

    “As a hub for innovation, cutting-edge technology, and a thriving semiconductor ecosystem, Silicon Valley is the ideal location for the National Semiconductor Technology Center’s CHIPS for America Collaboration and Design Facility. The facility will serve as an institution for advancing new technologies and building a workforce that helps America lead in the 21st century economy. This facility was made possible by the CHIPS and Science Act that we proudly worked on and voted to pass in Congress. We will continue to support investments in technologies and manufacturing that benefit our communities and our country’s economy,” said Representatives Panetta, Khanna, Lofgren, and Eshoo. 

    The Sunnyvale based facility will support: 

    • Conducting advanced semiconductor research in chip design and hardware security
    • Hosting the NSTC Workforce Center of Excellence, Design Enablement Gateway, and a future Investment Fund
    • Convening NSTC members and stakeholders from across the semiconductor ecosystem
    • Housing various administration functions

     

    ###

    MIL OSI USA News –

  • MIL-OSI Security: Yarmouth — Southwest Nova RCMP Major Crime Unit investigating suspicious deaths

    Source: Royal Canadian Mounted Police

    The Southwest Nova RCMP Major Crime Unit is investigating two suspicious deaths that occurred in Yarmouth.

    On November 1, at approximately 2:40 p.m., Yarmouth Town RCMP responded to the sudden deaths of two adults who were known to each other. Responding officers found the remains of a 58-year-old man and a 49-year-old woman inside a home on Placid Crt.

    The deaths are being treated as suspicious.

    The ongoing investigation into the deaths is being led by the Southwest Nova RCMP Major Crime Unit with assistance from Yarmouth Town RCMP, the Yarmouth Town RCMP General Investigation Section, Yarmouth Rural RCMP, the Shelburne Street Crime Enforcement Unit, Forensic Identification Services, Digital Forensics Services, Southwest Nova Traffic Services, and the Nova Scotia Medical Examiner Service.

    The investigation is in its early stages; no further details will be released at this time.

    Our thoughts are with the families of the deceased.

    MIL Security OSI –

  • MIL-OSI Security: FBI St. Louis Election Command Post

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

    In keeping with our standard Election Day protocol, FBI St. Louis has stood up an Election Command Post in preparation for the election on November 5. The command post is staffed 24 hours a day to provide a centralized location for assessing election-related threats in our area of responsibility. The FBI has a duty to plan for a host of potential scenarios related to election fraud, voter suppression, foreign malign influence, malicious cyber activity against election infrastructure, and threats to election workers. We are committed to protecting the American public’s right to a fair and safe election. 
      
    For decades, the FBI has served as the primary agency responsible for investigating allegations of federal election crimes, including campaign finance violations, ballot/voter fraud, and civil rights violations. In close partnership with Department of Justice (DOJ), the FBI established the Election Threats Task Force to identify and address reported threats targeting election workers. 
      
    The FBI takes our responsibility very seriously, and works closely with our federal, state, and local partners to identify and stop any potential threats to public safety. We gather and analyze intelligence to determine whether individuals might be motivated to take violent action for any reason, including due to concerns about the election. 
      
    It is vital the FBI, our law enforcement partners, and the public work together to protect our communities as Americans exercise their right to vote. We encourage the public to remain vigilant and immediately report any suspicious activity to law enforcement. The FBI takes all threats of violence seriously, including threats targeting those who do the critical work of administering free and fair elections throughout the U.S. 
      
    The Justice Department has long recognized that the states—not the federal government—are responsible for administering elections, determining the validity of votes, and tabulating the results, with challenges handled by the appropriate election administrators, officials, legislatures, and courts.  The Department’s role is limited to investigating and prosecuting violations of federal election laws and deterring criminal conduct. 
      
    FBI St. Louis encourages citizens to report allegations of election fraud and other election abuses. You can reach the FBI at tips.fbi.gov or 1-800-CALL-FBI (1-800-225-5324). 

    MIL Security OSI –

  • MIL-OSI New Zealand: Auckland Transport director appointed

    Source: Auckland Council

    Auckland Council has appointed Dale Dillicar as a director of Auckland Transport.

    This appointment brings the Auckland Transport board to its full complement of eight voting members appointed by Auckland Council. Mrs Dillicar will chair the board’s Finance and Assurance committee.

    Councillor Christine Fletcher chaired the selection panel and welcomes Mrs Dillicar to the Auckland Transport board.

    “I am delighted to welcome Dale to the board of Auckland Transport. She brings a fresh perspective and a wealth of financial experience that will add a valuable dimension to our board, complementing the talents of our existing members as we continue to deliver long term value for Auckland,” says Cr Fletcher.

    The appointment was approved by the Performance and Appointments Committee on 22 October. The committee is responsible for all appointments to the boards of council-controlled organisations, in accordance with the council’s Appointment and Remuneration Policy for Board Members and the Local Government Act.

    About Dale Dillicar

    Dale is a senior finance executive with over 25 years’ experience across global industries, specialising in financial management, risk governance and operational oversight. She spent 12 years in the UK, where she led senior finance roles that enhanced her expertise in financial operations, treasury management and strategic risk management.

    For the past decade, Dale has been with Fonterra, currently serving as General Manager Risk Assurance for Fonterra’s operating office. Previously she was General Manager for Commercial, Category and Innovation where she successfully drove financial performance and cultivated a high-performing team culture.

    As a Chartered Accountant and qualified Treasurer, Dale offers deep expertise in governance, financial oversight and stakeholder engagement, with a focus on aligning practices with organisational goals to deliver long-term value.

    A born and bred Aucklander, Dale is committed to Auckland Transport’s purpose of a safe, integrated and efficient transport network for the people of Tāmaki Makaurau.

    MIL OSI New Zealand News –

  • MIL-OSI Security: FBI El Paso to Stand Up Election Command Post

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

    In keeping with our standard Election Day protocol, FBI El Paso has stood up an Election Command Post in preparation for the November 5 election. The command post is staffed 24 hours a day to provide a centralized location for assessing election-related threats in our area of responsibility. The FBI has a duty to plan for a host of potential scenarios related to election fraud, voter suppression, foreign malign influence, malicious cyber activity against election infrastructure, and threats to election workers. We are committed to protecting the American public’s right to a fair and safe election. 

    For decades, the FBI has served as the primary agency responsible for investigating allegations of federal election crimes, including campaign finance violations, ballot/voter fraud, and civil rights violations. In close partnership with Department of Justice (DOJ), the FBI established the Election Threats Task Force to identify and address reported threats targeting election workers. 

    The FBI takes our responsibility very seriously, and works closely with our federal, state, and local partners to identify and stop any potential threats to public safety. We gather and analyze intelligence to determine whether individuals might be motivated to take violent action for any reason, including due to concerns about the election. 

    It is vital the FBI, our law enforcement partners, and the public work together to protect our communities as Americans exercise their right to vote. We encourage the public to remain vigilant and immediately report any suspicious activity to law enforcement. The FBI takes all threats of violence seriously, including threats targeting those who do the critical work of administering free and fair elections throughout the U.S. 

    The Justice Department has long recognized that the states—not the federal government—are responsible for administering elections, determining the validity of votes, and tabulating the results, with challenges handled by the appropriate election administrators, officials, legislatures, and courts.  The Department’s role is limited to investigating and prosecuting violations of federal election laws and deterring criminal conduct.

    FBI El Paso encourages citizens to report allegations of election fraud and other election abuses to FBI El Paso directly at (915) 832-5000.

    MIL Security OSI –

  • MIL-OSI Security: FBI Las Vegas Election Command Post

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

    In keeping with our standard Election Day protocol, FBI Las Vegas has stood up an Election Command Post in preparation for the election on November 5. The command post is staffed 24 hours a day to provide a centralized location for assessing election-related threats in our area of responsibility. The FBI has a duty to plan for a host of potential scenarios related to election fraud, voter suppression, foreign malign influence, malicious cyber activity against election infrastructure, and threats to election workers. We are committed to protecting the American public’s right to a fair and safe election.

    For decades, the FBI has served as the primary agency responsible for investigating allegations of federal election crimes, including campaign finance violations, ballot/voter fraud, and civil rights violations. In close partnership with Department of Justice (DOJ), the FBI established the Election Threats Task Force to identify and address reported threats targeting election workers.

    The FBI takes our responsibility very seriously and works closely with our federal, state, and local partners to identify and stop any potential threats to public safety. We gather and analyze intelligence to determine whether individuals might be motivated to take violent action for any reason, including due to concerns about the election.

    It is vital the FBI, our law enforcement partners, and the public work together to protect our communities as Americans exercise their right to vote. We encourage the public to remain vigilant and immediately report any suspicious activity to law enforcement. The FBI takes all threats of violence seriously, including threats targeting those who do the critical work of administering free and fair elections throughout the U.S.

    The Justice Department has long recognized that the states—not the federal government—are responsible for administering elections, determining the validity of votes, and tabulating the results, with challenges handled by the appropriate election administrators, officials, legislatures, and courts. The Department’s role is limited to investigating and prosecuting violations of federal election laws and deterring criminal conduct.

    FBI Las Vegas encourages citizens to report allegations of election fraud and other election abuses. You can reach the FBI at tips.fbi.gov or 1-800-CALL-FBI (1-800-225-5324).

    MIL Security OSI –

  • MIL-OSI New Zealand: On-sold programme changes bring resolution to homeowners and taxpayers

    Source: New Zealand Government

    Associate Finance Minister David Seymour has asked the Natural Hazards Commission (NHC) to make changes to how it delivers the On-sold support package to prevent a cost blowout while helping eligible homeowners repair their homes in a timely manner. 

    The On-sold programme was set up by the Government in 2019 as a time-limited offer of support for owners of eligible on-sold over-cap properties in Canterbury. Applicants had 12 months to apply for an ex-gratia payment towards the cost of having their homes repaired for remaining earthquake damage. Applications for the programme closed on 14 October 2020. 

    “The On-sold programme has supported over 800 Canterbury homeowners to complete repairs and move back into their homes, and hundreds more are in the process of doing so,” says Mr Seymour. 

    ““The programme was never intended to continue indefinitely though, so the Government is making changes to simplify it, encourage timely settlement for these remaining homeowners, and avoid delays that add to programme costs. 

    “Initial cost estimates for the programme in 2019 had it at $250 million. By June 2024 the estimated cost of the completed programme is at $717.9 million. Instead of allowing a rolling maul of cost increases, we’re putting a full stop on the programme in a way that allows applicants fair settlement.  

    The following changes come into effect immediately: 
     

    • No application can be settled in excess of 1.5 times the current rateable capital value (CV) of the property.  
    • Applicants need to meet new deadlines to remain in the programme. For example, they have 30 business days to sign their Settlement Deed (from the date of offer) and six months to begin construction from the date of agreement. Applicants will also need to supply the information needed to progress applications within strict timeframes. 
    • Pre-construction project-management costs under the programme are limited to 4% of the ex-gratia payment. 

    “The Government wants to see earthquake damage to residential properties repaired as soon as possible so Cantabrians don’t continue to live in earthquake-damaged homes,” says Mr Seymour. 

    “Other changes reinforce the need to manage costs in the programme. From 23 December, a further limit will be applied to settlements where the homeowner has chosen to purchase a new home.”  

    The amount of the repair grant that can be repurposed will be limited to the market value of the building(s) at the on-sold property – assuming the damage eligible for remediation through this programme did not exist – plus the costs of demolishing the damaged on-sold property. The other existing parameters for, and limits to, these alternative settlement payments will continue to apply; and NHC will continue to verify the appropriateness of proposed costs on behalf of the Crown.  

    “The NHC is communicating the changes to homeowners in the programme today and will be in contact with each homeowner over the next two days with information about what this means for their specific situation,” says Mr Seymour.  

    “There are around 250 applicants in the programme who have not yet signed a Settlement Deed. I hope these changes will lead to positive outcomes and certainty for these applicants.    

    “I’m happy that we’re delivering an outcome that benefits everyone – with remaining applications on track without creating more costs for taxpayers.” 
     
    Note to editors: Further information is available at https://www.naturalhazards.govt.nz/insurance-and-claims/canterbury-earthquake/on-sold-over-cap-properties/about-the-on-sold-support-package/ 

    MIL OSI New Zealand News –

  • MIL-OSI United Kingdom: Prime Minister unveils game changing investment to tackle national security threat from people smuggling gangs

    Source: United Kingdom – Government Statements

    The Prime Minister is set to announce an additional £75 million to boost border security, bringing the investment in the Border Security Command over the next two years to £150 million.

    • PM to outline major investments to smash criminal smuggling gangs at INTERPOL General Assembly in Glasgow
    • New capabilities for Border Security Command from £150 million funding pot to drive down Organised Immigration Crime both at home and overseas 
    • New additional funding will cover state-of-the-art tech and information centres, boosts to enforcement and intelligence resourcing and expanding CPS capacity

    The Prime Minister is set to announce an additional £75 million to boost border security, bringing the investment in the Border Security Command over the next two years to £150 million. 

    Marking the first time the INTERPOL General Assembly has been hosted in the UK in over 50 years, Keir Starmer will today (4 November) open the Assembly in Glasgow by setting out his personal mission to smash the people smuggling gangs by resetting the UK’s whole approach to this challenge and intensifying international collaboration to meet the global scale of the threat.

    The General Assembly is INTERPOL’s supreme governing body and comprises senior ministerial and policing leads from the organisation’s 196 member states. 

    In his speech, the Prime Minister will set out his plans to draw on his experience of bringing together agencies to tackle international terrorist and drug smuggling gangs during his time as Director of Public Prosecutions to dismantle the people smuggling gangs who drive illegal migration, profit from human misery and represent a serious threat to global security. 

    He will also set out how the £150 million will provide additional specialist investigators and state of the art surveillance equipment to ensure those behind this criminal activity are stopped and brought to justice. 

    This major funding boost for the government’s new Border Security Command will initially be directed towards a range of enforcement and intelligence activity, including:

    • Investing heavily in NCA technology and capabilities, delivering advanced data exploitation and improvements to technologies to boost collaboration with European partners to investigate and break people smuggling networks.
    • 300 staff for the new Border Security Command, who will strengthen global partnerships, deliver new legislation and lead the system through investment and strategy.
    • 100 specialist investigators and intelligence officers for the NCA, dedicated to tackling criminals who facilitate people smuggling. 

    • Creating a new specialist OIC Intelligence Source Unit which will cohere intelligence flows from key police forces. 

    • Boosting the Crown Prosecution Service’s ability to deliver charging decisions more quickly on international organised crime cases. 

    The Border Security Command, led by Martin Hewitt CBE QPM, will be provided with enhanced powers – through a new Border Security, Asylum and Immigration Bill – to tackle organised immigration crime whilst providing for strong and effective border security. 

    New measures will make it easier to detect, disrupt and deter those seeking to engage in and benefit from organised immigration crime. The Command will also coordinate the work of intelligence agencies and law enforcement, who lead joint investigations with European counterparts to ensure we can bring those responsible to justice.

    Prime Minister Sir Keir Starmer is expected to say:

    “The world needs to wake up to the severity of this challenge.  I was elected to deliver security for the British people. And strong borders are a part of that. But security doesn’t stop at our borders.  

    “There’s nothing progressive about turning a blind eye as men, women and children die in the Channel.

    “This is a vile trade that must be stamped out – wherever it thrives. So we’re taking our approach to counter-terrorism – which we know works, and applying it to the gangs, with our new Border Security Command. 

    “We’re ending the fragmentation between policing, Border Force and our intelligence agencies.”

    Home Secretary Yvette Cooper said: 

    “Criminal smuggler gangs profit from undermining our border security and putting lives at risk and they have been getting away with it for far too long.

    “Our new Border Security Command, with the investment set out today, will mean a huge step change in the way we target these criminal gangs. People smugglers and traffickers operate in networks across borders, that’s why we have launched a major boost to our cooperation with international partners including other European countries, the G7 and Europol, and why we are so pleased to be hosting the INTERPOL conference on tackling international crime in Glasgow today.”

    The Prime Minister will also announce that the UK Government has increased its in-year support for INTERPOL’s global operations through a £6 million investment which harnesses the organisation’s unique capabilities to tackle serious organised crime affecting the UK. 

    Addressing the General Assembly, the Prime Minister will say that closer cooperation with international partners is key as he details how the gangs’ operations span from the money markets in Kabul through to the Kurdish region of Iraq and right across Europe and into the UK. 

    He will stress the government’s ongoing commitment to strengthening security agreements to facilitate greater sharing of intelligence and more joint operational work, in particular through Europol. 

    The Home Office will also invest £24m in the new financial year to tackle international serious organised crime affecting the UK including drugs and firearms, fraud, trafficking and exploitation. Funds will in part be used to bolster work done by special prosecutors and operational partners in the Western Balkans.

    There were more than 5,000 drug related deaths in 2023, with most of the illegal drugs causing these coming from overseas or facilitated by transnational gangs. ISOC funding will also be used to tackle drug smuggling upstream and at the UK border, building on recent successes, such as the effective collaboration with the US and Ecuador, which has resulted in the seizure of 19 tonnes of cocaine.

    National Crime Agency Director General Graeme Biggar said:

    “Serious and organised crime causes more harm, to more people, more often than any other national security threat. And almost all of serious and organised crime now has an international nexus. Distance, borders and languages are meaningless to criminals. This is why collaborations with INTERPOL have never been as important as they are today.

    “Tackling organised crime, and especially immigration crime, remains a top priority for the NCA. We are currently leading around 70 investigations into the gangs or individuals involved in the highest echelons of this type of criminality, and we are devoting more resources to it than ever before.

    “We have built up our intelligence sharing effort with law enforcement partners across Europe and beyond, including having more NCA officers based overseas, sharing intelligence and working side by side on joint investigations. This approach is bringing operational results with arrests and prosecutions, but we are also we are seeking to disrupt the people smugglers’ business model, through targeting their social media offering, their supply routes for equipment, and their financial flows.

    “We are determined to do all we can to disrupt and dismantle these networks, wherever they operate.”

    The announcement comes just a month after Britain joined up to a new G7 anti migrant smuggling action plan which included pledges to bolster border security, combat transnational organised crime, and protect vulnerable individuals from exploitation by smugglers. 

    The plan includes new, intelligence-led joint investigative actions to target criminal smuggling routes, working with social media platforms and internet providers to remove harmful content promoting illegal migration services or advertising fake job opportunities, and strengthening capabilities to monitor and anticipate irregular migration flows at both global and regional levels.

    Updates to this page

    Published 4 November 2024

    MIL OSI United Kingdom –