Category: Finance

  • MIL-OSI Security: Avon, New York, Police Trainee Charged with Attempted Kidnapping, Cyberstalking, and Multiple Child Pornography Charges

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

    ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Casey Medina, 33, of Rochester, NY, was charged by criminal complaint with attempted kidnapping, distribution, receipt, and possession of child pornography, cyberstalking, and aiding and abetting. The charges carry a minimum penalty of five years in prison and a maximum of 20 years.

    Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that in May 2024, the Onondaga County, NY, Sheriff’s Office was contacted by a 31-year-old female (victim), who reported that she had been receiving text messages from unknown numbers that included photographs depicting her face superimposed on various pornographic images made to appear as if she had been engaging in sexual acts. In addition, the victim reported being threatened by the unknown numbers, including being kidnapped, raped, sexually abused and/or killed. In August 2024, the victim indicated to investigators that the text messages in May occurred over the course of approximately 26 days, and, after short break, continued sporadically through June and July 2024. The victim stated that the messages were becoming very concerning, and she had no idea who they were coming from.

    Also in August 2024, law enforcement received a tip from an individual that he had communicated with another individual with username “crcdal” via social media. The other individual, later identified as Medina, was looking for someone to help to harass the victim. Medina provided the individual with the victim’s personal information, including her place of employment, home address, personal cell phone number, and a variety of photos. The individual provided law enforcement with several screenshots of communications with Medina, which included discussions of abducting, drugging, and raping the victim. An undercover law enforcement officer then began communicating with Media online, during which they also discussed abducting, drugging, and raping the victim.

    On August 22, 2024, Medina was an Avon Police Department trainee, and was arrested by the Onondaga County Sheriff’s Office at the Rural Police Training Academy in Livingston County on multiple state charges. Investigators executed a search warrant on Medina’s cell phone and recovered the communications discussing the abduction, drugging, and raping of the victim as well as images and videos of child pornography that Medina shared online.

    The complaint is the culmination of an investigation by the Onondaga County, NY, Sheriff’s Office, under the direction of Sheriff Tobias Shelley, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.          

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

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    MIL Security OSI

  • MIL-OSI Security: Lancaster Man Sentenced for COVID Relief Fraud

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

    BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that Larry Jordan, 45, of Lancaster, NY, who was convicted of conspiracy to commit bank fraud and wire fraud for his participation in a scheme to file fraudulent loan applications seeking forgivable Paycheck Protection Program (PPP) loans, was sentenced to serve 18 months in prison by U.S. District Judge John L. Sinatra, Jr. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, joined the announcement.

    According to court documents, between April and September 2020, Jordan and his brother Sutukh El a/k/a Curtis Jordan a/k/a Hugo Hurt a/k/a Hugo Hermes Hurtington, conspired to submit eight fraudulent PPP loan applications on behalf of companies they owned or controlled. Three of the applications were submitted to Evolve Bank & Trust and the other five were submitted to Lendio, a financial technology company based in Utah. The applications contained false statements about the 2019 payroll expenses of each company, which were used to calculate the amount of PPP funds to which the applicant-companies would be entitled. To corroborate the applications, Jordan and El submitted IRS forms, which had never been filed with the IRS, as well as fraudulent payroll registers that purported to identify the names, personal information, and salary of the employees identified on the PPP applications.

    For example, a PPP loan application was submitted on behalf of 5 Stems Inc to Evolve. The application represented that in 2019, 5 Stems Inc had 194 employees and an average monthly payroll of $242,133.33. In truth, 5 Stems Inc had nine employees in 2019 and paid those employees a total of approximately $57,380 for all of 2019. Evolve approved the application and funded a $605,200 loan. The money was deposited into an account controlled by defendant El. Some of the money was used for the defendants’ own investments, as well as personal expenses and home improvements.

    Sutukh El was previously convicted and is awaiting sentencing.

    This case was investigated by the Federal Deposit Insurance Corporation’s Office of Inspector General, the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General, the Federal Housing Finance Agency’s Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration’s Office of Inspector General. Assistant U.S. Attorneys Charles Kruly and Grace Carducci for the Western District of New York and Trial Attorneys Ariel Glasner and Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.

    Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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    MIL Security OSI

  • MIL-OSI: Volta Finance Limited – Net Asset Value(s) as at 30 September 2024

    Source: GlobeNewswire (MIL-OSI)

    Volta Finance Limited (VTA / VTAS)
    September 2024 monthly report

    NOT FOR RELEASE, DISTRIBUTION, OR PUBLICATION, IN WHOLE OR PART, IN OR INTO THE UNITED STATES

    Guernsey, October 21st, 2024

    AXA IM has published the Volta Finance Limited (the “Company” or “Volta Finance” or “Volta”) monthly report for September 2024. The full report is attached to this release and will be available on Volta’s website shortly (http://www.voltafinance.com).

    Performance and Portfolio Activity

    Dear investors,

    Volta Finance recorded a net performance of +2.3% in September bringing the year-to-date return to +13.5%. This positive performance is built on the strong performance of its CLO equity investments through the month, Volta being almost fully invested in CLO Equity and debt tranches.

    Markets found some momentum in September on the back of a rather constructive macro backdrop. In Europe, inflation headline numbers dropped to 1.8% YoY and were below the 2% target for the first time in almost three years. Core inflation also came in lower and beat estimates with 2.7% YoY, opening the door for further cut rates possibly as early as October. In the US, the Fed implemented a 50bp rate cut by mid-month while the US flash PMIs showed economic resilience at 54.4 (vs. 54.3 expected).

    Credit markets were relatively stable despite some volatility intra-month, High Yield indices in Europe (Xover) were marginally wider following the index’s roll in the +315bps context while the US CDX High-Yield one settled at c. +330bps (+8bps MoM). On the Loan side, Euro Loans closed 25 cents down at c. 97.60px (Morningstar European Leveraged Loan Index), their US counterparts were trading flat at 96.70px.

    Primary CLO markets remained extremely busy once again, we recorded circa USD 42bn of issuance in the US and EUR 7bn in Europe. Spreads moved sideways across the capital structure with AAAs pricing +130bps context and non-Investment Grade BB-rated tranches at +600bps in Europe (inside +550 for top tier US bonds).

    Looking at fundamentals, both US and European default rates were roughly unchanged at 0.80% while the proportion of CCC-rated Loans within CLO collateral portfolios was slightly lower at 5.4% in US CLOs and slightly higher at 3.7% in Europe, while Loan repayment rates were stable at 26% in the US (-2% YoY growth rate of the Loan market) and 14% in Europe (+6% YoY growth). .

    Volta Finance’s activity over the month was focused on CLO Equity. $7mm of USCLO Equity were purchased as well as tickets of c. €1.4m in a Reset and €2.0mm in Secondary. Also, 2 transactions in which Volta is invested were reset through the month generating mark-to-market gains for Volta in addition to the strong distribution generated by the closing of one European CLO warehouse.

    CLO debt investments performed in excess of their carry, driven by some spread compression. Overall, the cashflow generation over the last 6 months remained strong at c.€30m equivalent of interests and coupons, representing c.23% of the month’s NAV on an annualized basis.

    Volta’s underlying sub asset classes monthly performances** were as follow: +1.1% for Bank Balance Sheet transactions, +4.1% for CLO Equity tranches, +1.4% for CLO Debt tranches and 0.0% for Cash Corporate Credit & ABS***, cash representing c.4% of NAV. The fund being c.26% exposed to USD, the depreciation of USD vs EUR had a negative impact of -0.2% on the overall performance.

    As of end of September 2024, Volta’s NAV was €261.9m, i.e. €7.16 per share.

    *It should be noted that approximately 0.44% of Volta’s GAV comprises investments for which the relevant NAVs as at the month-end date are normally available only after Volta’s NAV has already been published. Volta’s policy is to publish its NAV on as timely a basis as possible to provide shareholders with Volta’s appropriately up-to-date NAV information. Consequently, such investments are valued using the most recently available NAV for each fund or quoted price for such subordinated notes. The most recently available fund NAV or quoted price was 0.24% as at 31 August 2024, 0.20% as at 31 July 2024.

    ** “performances” of asset classes are calculated as the Dietz-performance of the assets in each bucket, taking into account the Mark-to-Market of the assets at period ends, payments received from the assets over the period, and ignoring changes in cross-currency rates. Nevertheless, some residual currency effects could impact the aggregate value of the portfolio when aggregating each bucket.
    *** The cash Corporate Credit and ABS bucket is currently made of 3 legacy assets representing 0.6% of GAV.

    CONTACTS

    For the Investment Manager
    AXA Investment Managers Paris
    François Touati
    francois.touati@axa-im.com
    +33 (0) 1 44 45 80 22

    Olivier Pons
    Olivier.pons@axa-im.com
    +33 (0) 1 44 45 87 30

    Company Secretary and Administrator
    BNP Paribas S.A, Guernsey Branch
    guernsey.bp2s.volta.cosec@bnpparibas.com 
    +44 (0) 1481 750 853

    Corporate Broker
    Cavendish Securities plc
    Andrew Worne
    Daniel Balabanoff
    +44 (0) 20 7397 8900

    *****
    ABOUT VOLTA FINANCE LIMITED

    Volta Finance Limited is incorporated in Guernsey under The Companies (Guernsey) Law, 2008 (as amended) and listed on Euronext Amsterdam and the London Stock Exchange’s Main Market for listed securities. Volta’s home member state for the purposes of the EU Transparency Directive is the Netherlands. As such, Volta is subject to regulation and supervision by the AFM, being the regulator for financial markets in the Netherlands.

    Volta’s Investment objectives are to preserve its capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis. The Company currently seeks to achieve its investment objectives by pursuing exposure predominantly to CLO’s and similar asset classes. A more diversified investment strategy across structured finance assets may be pursued opportunistically. The Company has appointed AXA Investment Managers Paris an investment management company with a division specialised in structured credit, for the investment management of all its assets.

    *****

    ABOUT AXA INVESTMENT MANAGERS
    AXA Investment Managers (AXA IM) is a multi-expert asset management company within the AXA Group, a global leader in financial protection and wealth management. AXA IM is one of the largest European-based asset managers with 2,700 professionals and €844 billion in assets under management as of the end of December 2023.  

    *****

    This press release is published by AXA Investment Managers Paris (“AXA IM”), in its capacity as alternative investment fund manager (within the meaning of Directive 2011/61/EU, the “AIFM Directive”) of Volta Finance Limited (the “Volta Finance”) whose portfolio is managed by AXA IM.

    This press release is for information only and does not constitute an invitation or inducement to acquire shares in Volta Finance. Its circulation may be prohibited in certain jurisdictions and no recipient may circulate copies of this document in breach of such limitations or restrictions. This document is not an offer for sale of the securities referred to herein in the United States or to persons who are “U.S. persons” for purposes of Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or otherwise in circumstances where such offer would be restricted by applicable law. Such securities may not be sold in the United States absent registration or an exemption from registration from the Securities Act. Volta Finance does not intend to register any portion of the offer of such securities in the United States or to conduct a public offering of such securities in the United States.

    *****

    This communication is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “relevant persons”). The securities referred to herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. Past performance cannot be relied on as a guide to future performance.

    *****
    This press release contains statements that are, or may deemed to be, “forward-looking statements”. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms “believes”, “anticipated”, “expects”, “intends”, “is/are expected”, “may”, “will” or “should”. They include the statements regarding the level of the dividend, the current market context and its impact on the long-term return of Volta Finance’s investments. By their nature, forward-looking statements involve risks and uncertainties and readers are cautioned that any such forward-looking statements are not guarantees of future performance. Volta Finance’s actual results, portfolio composition and performance may differ materially from the impression created by the forward-looking statements. AXA IM does not undertake any obligation to publicly update or revise forward-looking statements.

    Any target information is based on certain assumptions as to future events which may not prove to be realised. Due to the uncertainty surrounding these future events, the targets are not intended to be and should not be regarded as profits or earnings or any other type of forecasts. There can be no assurance that any of these targets will be achieved. In addition, no assurance can be given that the investment objective will be achieved.

    The figures provided that relate to past months or years and past performance cannot be relied on as a guide to future performance or construed as a reliable indicator as to future performance. Throughout this review, the citation of specific trades or strategies is intended to illustrate some of the investment methodologies and philosophies of Volta Finance, as implemented by AXA IM. The historical success or AXA IM’s belief in the future success, of any of these trades or strategies is not indicative of, and has no bearing on, future results.

    The valuation of financial assets can vary significantly from the prices that the AXA IM could obtain if it sought to liquidate the positions on behalf of the Volta Finance due to market conditions and general economic environment. Such valuations do not constitute a fairness or similar opinion and should not be regarded as such.

    Editor: AXA INVESTMENT MANAGERS PARIS, a company incorporated under the laws of France, having its registered office located at Tour Majunga, 6, Place de la Pyramide – 92800 Puteaux. AXA IMP is authorized by the Autorité des Marchés Financiers under registration number GP92008 as an alternative investment fund manager within the meaning of the AIFM Directive.

    *****

    Attachment

    The MIL Network

  • MIL-OSI USA: Schakowsky, Warren, Welch Push to Increase Funding for Medical Research, Require Law-Breaking Drug Companies to Reinvest in NIH and FDA

    Source: United States House of Representatives – Congresswoman Jan Schakowsky (9th District of Illinois)

    Bill applies to pharmaceutical companies who are found guilty or are accused of breaking the law and settle with the federal government.

    Full Text of Bill (PDF) | One Pager (PDF)

    EVANSTON – U.S. Representative Jan Schakowsky (IL-09), along with U.S. Senators Elizabeth Warren (D-MA) and Peter Welch (D-VT) introduced the Medical Innovation Act of 2024 to increase funding for medical innovation by requiring large pharmaceutical companies that are accused of breaking the law and settle with the federal government to reinvest a percentage of their profits into the National Institutes of Health (NIH) and the U.S. Food and Drug Administration (FDA).

    In 2023, the NIH only had funds for 23% of the applications it received, contributing to a huge medical innovation gap. At the same time, pharmaceutical companies have been accused of defrauding Medicare and Medicaid, marketing drugs for unapproved uses, illegally incentivizing doctors to prescribe drugs, lying about the safety of their drugs, and violating other criminal and civil laws. The companies have settled many of these claims with the federal government, treating the fines as a cost of doing business. Most recently, Teva Pharmaceuticals agreed to pay the Justice Department $450 million to settle a set of lawsuits alleging that the company defrauded Medicare and conspired with other drug-makers to illegally inflate the prices of two generic drugs.

    Between 2019 and October 2024, the Department of Justice pursued new actions against or settled cases with at least 40 pharmaceutical companies. 

    The Medical Innovation Act would: 

    • Require pharmaceutical companies accused of breaking the law to reinvest a small percentage of their profits in NIH and FDA. These payments would increase with the severity of the settlement penalty, and would only be required of companies that rely on federally-funded research to develop billion-dollar, “blockbuster” drugs.  
    • Invest in life-saving medical innovation through the NIH and FDA. Payments collected through this bill would be used to develop treatments and diagnostics to address unmet medical needs; support research grants for early career scientists; research diseases that disproportionately contribute to federal health care spending; and advance basic biomedical research, among other uses.
    • Promote sustained investments in biomedical research. To ensure that the Act results in a net increase in funding for medical research, money from the supplemental settlement fees would only be available in years that annual appropriations for NIH and FDA are equal to or greater than appropriations for the agencies in the prior fiscal year.   

    “For too long, drug companies that rely on federally-funded research to develop their blockbuster drugs have gotten away with defrauding consumers and taxpayers,” said Congresswoman Jan Schakowsky. “The Medical Innovation Act would make it more difficult for these drug companies to game the system by requiring them to provide a share of their profits to increase investments in biomedical research at the National Institutes of Health and the Food and Drug Administration. We can continue to be a leading force in medical innovation and this legislation will help ensure that we have the means to cure diseases and save lives.” 

    “Big Pharma shouldn’t be able to defraud the federal government and get away with just a slap on the wrist,” said Senator Elizabeth Warren. “This bill will help us save lives by ensuring giant drug companies that enter into settlement agreements with the federal government chip in to fund the next generation of medical research.”

    “The Medical Innovation Act is a commonsense way to advance more medical research by holding shady pharmaceutical companies accountable when they break the law,” said Senator Peter Welch. “I led this bill as a member of the House and am fighting today with my colleagues Senator Warren and Representative Schakowsky to maintain America’s leadership in biomedical science.”

    This bill is endorsed by the following organizations: National Women’s Health Network, AIDS United, University of Massachusetts Medical School, Society of Behavioral Medicine, Families USA, Public Citizen, and Massachusetts Medical Society. 

    “The Medical Innovation Act reinvests in vital research. This legislation is a crucial step toward holding the pharmaceutical industry accountable while ensuring that taxpayer-funded research leads to tangible advancements in health. With women historically underrepresented in clinical trials, it’s imperative that we close the innovation gap. The Network thanks Senator Elizabeth Warren for her leadership on this issue and we are hopeful that together, we can create a healthier future for all women,” said Denise Hyater-Lindenmuth, Executive Director, National Women’s Health Network.

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    MIL OSI USA News

  • MIL-OSI Security: Virginia Man Pleads Guilty to Interstate Threat

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

    Ahead of the Threat Podcast: Episode Zero

    Welcome to Ahead of the Threat, the FBI’s new podcast miniseries that brings together an FBI cyber executive and a private sector chief information security officer. Join Bryan Vorndran, assistant director of the FBI’s Cyber Division, and Jamil Farshchi, a strategic engagement advisor for the FBI who also works as an executive vice president and CISO of Equifax, as they discuss emerging cyber threats and the enduring importance of cybersecurity fundamentals. Featuring distinguished guests from the business world and government, Ahead of the Threat will confront some of the biggest questions in cyber: How will emerging technology impact corporate America? How can corporate boards be structured for cyber resilience? What does the FBI think about generative artificial intelligence? Listen to new episodes biweekly and stay Ahead of the Threat.

    Charity and Disaster Fraud

    Charity fraud scams can come in many forms: emails, social media posts, crowdfunding platforms, cold calls, etc. They are especially common after high-profile disasters. Always use caution and do your research when you’re looking to donate to charitable causes.

    RYAN JAMES WEDDING

    Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances; Conspiracy to Export Cocaine; Continuing Criminal Enterprise; Murder in Connection with a Continuing Criminal Enterprise and Drug Crime; Attempt to Commit…

    Capitol Violence

    The FBI is seeking to identify individuals involved in the violent activities that occurred at the U.S. Capitol and surrounding areas on January 6, 2021. View photos and related information here. If you have any information to provide, visit tips.fbi.gov or call 1-800-CALL-FBI.

    MIL Security OSI

  • MIL-OSI Security: Neshoba County Man Sentenced to Over 11 Years in Prison for Shooting a Tribal Member on the Choctaw Indian Reservation

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

    Jackson, Miss.  – A Neshoba County man was sentenced to 138 months in federal prison for assault with intent to do bodily harm and use of a firearm during a crime of violence on the Choctaw Indian Reservation.

    According to court documents, in September 2022, Jessie James Clay, Jr., 42, used a handgun to shoot a tribal member, causing serious bodily injury, at a residence in the Pearl River Community of the Mississippi Band of Choctaw Indians.   

    Clay was indicted by a federal grand jury in January 2023, and he pled guilty on July 18, 2024.

    United States Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Robert Eikhoff of the Federal Bureau of Investigation made the announcement.

    The Choctaw Police Department and the Federal Bureau of Investigation investigated the case.

    Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case.

    MIL Security OSI

  • MIL-OSI Security: Security News: Atlanta Attorney Pleads Guilty in Syndicated Conservation Easement Tax Scheme

    Source: United States Department of Justice 2

    A Georgia man pleaded guilty last week to obstructing the IRS related to his participation in the promotion of abusive syndicated conservation easement tax shelters.

    According to court documents and statements made in court, Vi Bui was an attorney and partner at Sinnott & Co., an Atlanta-based company. Beginning in at least in 2012 and continuing through at least May 2020, Bui participated in a scheme to defraud the IRS by organizing, marketing, implementing and selling illegal syndicated conservation easement tax shelters created and organized by Jack Fisher, Sinnott and others. For their involvement in the scheme, Fisher and Sinnott were convicted at trial and in January sentenced to 25 and 23 years in prison, respectively.

    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. Appraisers would allegedly generate fraudulent and inflated appraisals of the conservation easements. The partnerships then claimed a charitable contribution tax deduction based on the inflated value of the conservation easement, resulting in a fraudulent tax deduction flowing to the wealthy clients who purchased units in the partnership. Many of these clients joined the tax shelters after the donation of the interest in land and after the close of the relevant tax year. Bui knew that, to make it appear that the participants had timely purchased their units in the tax shelters, Fisher, Sinnott and others backdated and instructed others to falsify documents, including subscription agreements, checks and other documents. And in at least one instance, Bui falsified documents himself.

    Bui anticipated that the syndicated conservation easement transactions would be audited. To deceive the IRS, Bui and others took steps to make the partnerships appear as legitimate real estate development companies. They would create and disseminate lengthy documents disguising the true nature of the transaction, institute sham “votes” for what to do with the land that the partnership owned despite knowing that outcome was predetermined and falsify paperwork, such as appraisals and subscription agreements.

    In one instance, when investigators conducted an undercover operation in 2018, Bui, believing that the IRS was auditing an individual’s 2014 tax return, prepared false documents that made it appear that the materials were executed before the purported donation of the conservation easement in 2014 and before the 2014 tax returns had been filed.

    Bui earned substantial income for his role in the illegal scheme. He also used the fraudulent tax shelters to evade his own taxes, filing false personal tax returns from 2013 through 2018 that claimed false tax deductions from the illegal syndicated conservation easement tax shelters.

    Bui is scheduled to be sentenced on Feb. 13, 2025, and faces a maximum penalty of three years in prison. Bui also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    To date, in addition to the convictions of Fisher and Sinnott noted above, nine additional defendants have pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme, including appraiser Walter Douglas “Terry” Roberts, accountants Stein Agee; Corey Agee, CPA; Ralph Anderson, CPA; James Benkoil, CPA; Victor Smith, CPA; William Tomasello, CPA; Herbert Lewis,  CPA; and Attorney Randall Lenz.

    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 Chief Guy Ficco of the IRS Criminal Investigation (IRS-CI) 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-CI 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 and deputy chief of the complex frauds section for the Northern District of Georgia  are prosecuting the case.

    MIL Security OSI

  • MIL-OSI Security: Security News: Justice Department Issues Comprehensive Proposed Rule Addressing National Security Risks Posed to U.S. Sensitive Data

    Source: United States Department of Justice 2

    Note: Read the Department’s fact sheet on this matter here.

    The Justice Department today issued a Notice of Proposed Rulemaking (NPRM) to implement President Biden’s Executive Order 14117 (the E.O.) of Feb. 28, “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern.” The E.O. addresses the national security threat posed by the continued effort of certain countries of concern to access and exploit certain kinds of Americans’ sensitive personal data. The President charged the Justice Department with the responsibility of establishing and implementing this new national security regulatory program to address these risks. On March 5, the Department’s Advance Notice of Proposed Rulemaking (ANPRM) was published in the Federal Register. Informed by extensive stakeholder outreach and careful consideration of comments the NPRM addresses public comments received on the ANPRM and proposes a rule to establish this new program and implement the E.O.

    This comprehensive proposed rule would implement the E.O. by establishing categorical rules for certain data transactions that pose an unacceptable risk of giving countries of concern or covered persons access to government-related data or bulk U.S. sensitive personal data. Among other things, the proposed rule identifies classes of prohibited and restricted transactions, identifies countries of concern and classes of covered persons to whom the proposed rule applies, identifies classes of exempt transactions, explains the Department’s methodology for establishing bulk thresholds, provides the Department’s initial assessment of economic and other regulatory impacts, establishes processes to issue licenses authorizing certain prohibited or restricted transactions, issue advisory opinions, and designate covered persons, and addresses recordkeeping, reporting, and other due-diligence obligations for covered transactions.

    The Justice Department’s National Security Division requests public comment on the proposed rule within 30 days of its publication in the Federal Register. The Department seeks comments on the proposed rule from industry, trade association groups, civil society, subject-matter experts, organizations and entities potentially affected by the proposed rule, and others with interest in the rule or expertise on data security and cybersecurity. The public may submit written comments on the NPRM at http://www.regulations.gov.

    The proposed rule is tailored to address the specific national security risks stemming from access by countries of concern and covered persons to Americans’ bulk sensitive personal data and certain sensitive U.S. government-related data. These measures complement the United States’ commitment to promoting an open, global, interoperable, reliable, and secure internet; protecting human rights online and offline; supporting a vibrant, global economy by promoting cross-border data flows that are required to enable international commerce and trade; and facilitating open investment.

    As previewed in the ANPRM, the proposed rule does not authorize the imposition of generalized data localization requirements to store Americans’ bulk sensitive personal data or U.S. Government-related data or to locate computing facilities used to process such data in the United States. As also previewed in the ANPRM, the proposed rule also does not broadly prohibit U.S. persons from engaging in commercial transactions, including exchanging financial and other data as part of the sale of commercial goods and services with countries of concern or covered persons, or impose measures aimed at a broader decoupling of the substantial consumer, economic, scientific, and trade relationships that the United States has with other countries. To reflect this, the NPRM proposes a new exemption for telecommunications services, provides further clarity on exemptions regarding financial services and intra-corporate-group transfers that were previewed in the ANPRM, and seeks public comment on a new proposed exemption for clinical-trial data.

    The proposed rule’s prohibitions and restrictions are consistent with other access restrictions on sensitive personal data that have been imposed in other contexts, including for transactions reviewed by the Committee on Foreign Investment in the United States (CFIUS) and the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector (Team Telecom). As the ANPRM previewed, the proposed rule exempts several classes of data transactions from the scope of its prohibitions and restrictions, including certain personal communications, financial services, corporate group transactions, transactions authorized by Federal law and international agreements, investment agreements subject to a CFIUS action, telecommunication services, biological product and medical device authorizations, clinical investigations, and others.

    As explained in the NPRM, countries of concern can use their access to these types of data to engage in malicious cyber-enabled activities and malign foreign influence activities, bolster their military capabilities, and track and build profiles on U.S. individuals (including members of the military and other Federal employees and contractors) for illicit purposes such as blackmail and espionage. Countries of concern can also exploit this data to collect information on activists, academics, journalists, dissidents, political opponents, or members of nongovernmental organizations or marginalized communities to intimidate them, curb political opposition, limit freedoms of expression, peaceful assembly, or association, or enable other forms of suppression of civil liberties.

    The proposed rule would require vendor agreements, employment agreements, and investment agreements that qualify as restricted transactions to comply with the separately proposed security requirements that have been developed by the Department of Homeland Security’s Cybersecurity and Infrastructure Agency (CISA) in coordination with the Justice Department. These proposed security requirements require U.S. persons engaging in a restricted transaction to comply with organizational and system-level requirements, such as ensuring that basic organizational cybersecurity policies, practices, and controls are in place, and data-level requirements, such as data minimization and masking, encryption, and privacy-enhancing techniques. CISA is concurrently making these proposed security requirements available for public comment at http://www.regulations.gov.

    MIL Security OSI

  • MIL-OSI USA: Welch Joins Warren, Schakowsky in Pushing to Require Law-Breaking Drug Companies to Reinvest Profits in NIH & FDA for Medical Research

    US Senate News:

    Source: United States Senator Peter Welch (D-Vermont)
    Medical Innovation Act applies to pharmaceutical companies who are found guilty or are accused of breaking the law and settle with the federal government.
    WASHINGTON, D.C. – U.S. Senator Peter Welch (D-Vt.) joined U.S. Senator Elizabeth Warren (D-Mass.) and U.S. Representative Jan Schakowsky (D-IL-09) in introducing the Medical Innovation Act of 2024, which would require large pharmaceutical companies that are accused of breaking the law and settle with the federal government to reinvest a small percentage of their profits into the National Institutes of Health (NIH) and the U.S. Food and Drug Administration (FDA). 
    “The Medical Innovation Act is a commonsense way to advance more medical research by holding shady pharmaceutical companies accountable when they break the law,” said Senator Welch. “I led this bill as a member of the House and am fighting today with my colleagues Senator Warren and Representative Schakowsky to maintain America’s leadership in biomedical science.” 
    “Big Pharma shouldn’t be able to defraud the federal government and get away with just a slap on the wrist,” said Senator Warren. “This bill will help us save lives by ensuring giant drug companies that enter into settlement agreements with the federal government chip in to fund the next generation of medical research.” 
    “For too long, drug companies that rely on federally-funded research to develop their blockbuster drugs have gotten away with defrauding consumers and taxpayers,” said Congresswoman Jan Schakowsky. “The Medical Innovation Act would make it more difficult for these drug companies to game the system by requiring them to provide a share of their profits to increase investments in biomedical research at the National Institutes of Health and the Food and Drug Administration. We can continue to be a leading force in medical innovation and this legislation will help ensure that we have the means to cure diseases and save lives.” 
    In 2023, the NIH only had funds for 23% of the applications it received, contributing to a huge medical innovation gap. At the same time, pharmaceutical companies have been accused of defrauding Medicare and Medicaid, marketing drugs for unapproved uses, illegally incentivizing doctors to prescribe drugs, lying about the safety of their drugs, and violating other criminal and civil laws. The companies have settled many of these claims with the federal government, treating the fines as a cost of doing business. Most recently, Teva Pharmaceuticals agreed to pay the Justice Department $450 million to settle a set of lawsuits alleging that the company defrauded Medicare and conspired with other drug-makers to illegally inflate the prices of two generic drugs. Between 2019 and October 2024, the Department of Justice pursued new actions against or settled cases with at least 40 pharmaceutical companies.  
    The Medical Innovation Act would:  
    Require pharmaceutical companies accused of breaking the law to reinvest a small percentage of their profits in NIH and FDA. These payments would increase with the severity of the settlement penalty, and would only be required of companies that rely on federally-funded research to develop billion-dollar, “blockbuster” drugs.   
    Invest in life-saving medical innovation through the NIH and FDA. Payments collected through this bill would be used to develop treatments and diagnostics to address unmet medical needs; support research grants for early career scientists; research diseases that disproportionately contribute to federal health care spending; and advance basic biomedical research, among other uses. 
    Promote sustained investments in biomedical research. To ensure that the Act results in a net increase in funding for medical research, money from the supplemental settlement fees would only be available in years that annual appropriations for NIH and FDA are equal to or greater than appropriations for the agencies in the prior fiscal year.     
    Senator Welch introduced the Medical Innovation Act as a Member of the House of Representatives in the 114th Congress alongside Senator Warren and they have pushed for the legislation since 2015. The Medical Innovation Act is cosponsored this Congress by Senators Sherrod Brown (D-Ohio), Bernie Sanders (I-Vt.), Chris Van Hollen (D-Md.), and Sheldon Whitehouse (D-R.I.).  
    This bill is endorsed by the National Women’s Health Network, AIDS United, University of Massachusetts Medical School, Society of Behavioral Medicine, Families USA, Public Citizen, and the Massachusetts Medical Society.  
    View the bill text of the Medical Innovation Act.   
    Read more about the Medical Innovation Act.  

    MIL OSI USA News

  • MIL-OSI USA: Pierce County business owner must pay $360K for scamming local gas station owners

    Source: Washington State News

    Kevin Wilkerson and his companies illegally charged tens of thousands of dollars for shoddy work that increased the risk of underground fuel leaks

    TACOMA — On Friday, a Pierce County judge ordered a local business owner to pay more than $360,000 in penalties and restitution for unlawfully charging gas station owners for unfinished, unnecessary, or shoddy work on underground fuel storage tanks. The order is the result of a consumer protection lawsuit filed by Attorney General Bob Ferguson’s Wing Luke Civil Rights Division.

    The judgment includes full restitution, plus interest, for nine gas station owners — all but one of whom identify as Korean or South Asian — who were scammed by Kevin Wilkerson and his companies, Northwest Environmental Services and Core Environmental Group. Wilkerson collected payment from the small businesses for work he did not perform or performed so poorly the businesses had to pay thousands more to other companies for the same services. In many cases, Wilkerson stopped responding to the owners of the gas stations when they attempted to contact him and refused to refund what they paid.

    “My office stands up for Washington small businesses that follow the rules and contribute to our economy,” Ferguson said. “Wilkerson and his companies not only took advantage of Washingtonians trying to follow the rules, he put their livelihoods at risk. We are committed to protecting hardworking small businesses from bad actors who prey on them.”

    An Olympia gas station owner, who immigrated to the U.S. 40 years ago, told the Attorney General’s Office: “(Wilkerson) took my money and then didn’t respond to me and made excuses. I trusted him. He was supposed to be an expert in the field. He was supposed to know what he’s doing. If he had said something needed to be done, I listened and asked him to do it because I relied on his word. Instead, (Wilkerson) and NES did work they were not qualified to do and cost me thousands of dollars in the process.”

    Wilkerson’s unlawful conduct affected small businesses in Pierce, King, Snohomish, Thurston, Grays Harbor and Lewis counties.

    Wilkerson’s unlawful conduct violated the state Consumer Protection Act. On Friday, Pierce County Superior Court Judge Clarence Henderson, Jr., found that Wilkerson violated the law and ordered Wilkerson to pay a total of $360,741, which includes $195,000 in enhanced civil penalties for harming individuals in Washington based on their national origin. Wilkerson must pay nine gas station owners a total of $165,741, amounting to full restitution plus interest.

    Moreover, Wilkerson and his companies must cease all unlawful conduct or face further penalties from the court.

    Wilkerson’s companies advertise maintenance services for underground storage tanks, which are used by gas stations across Washington to store fuel. There are approximately 8,700 underground storage tanks located at more than 3,400 sites statewide. Gas stations, which are primarily independently owned and operated, are responsible for periodic testing, maintenance and servicing for underground storage tanks. Service providers for this maintenance work must be certified, follow state regulations, and report the services they perform to the state Department of Ecology, which enforces regulations for underground storage tanks. Despite advertising a “skilled and certified in-house team” that “performs to the highest of standards,” Wilkerson and his companies have been taking advantage of small business owners since at least 2015, including:

    • Accepting payment for services that were not completed or only partially completed;
    • Completing services that violated regulations and exposed customers to liability for environmental damages;
    • Misrepresenting certifications to customers;
    • Persuading gas station owners to purchase and install unnecessary equipment and make unnecessary, expensive repairs; and
    • Telling gas station owners they had submitted required documentation to Ecology when they had not.

    In one instance, an Indian gas station owner in Toledo paid Wilkerson a $50,000 deposit to install new underground fuel storage tanks at his gas station. Six months later, the business owner learned that Wilkerson had not applied for the permits and, as a result, the work could not begin on time. The gas station owner had already purchased two new underground tanks, each capable of holding 25,000 gallons of fuel. With nowhere to install them, the owner had to pay an additional $7,000 to store them above ground behind the gas station. The gas station owner has hired a different contractor to complete the work, which will not be done until summer 2025. As a result, the business will lose a significant portion of monthly sales until then. The court ordered Wilkerson to repay the business owner $94,119 for this and other shoddy work, an amount that includes 12 percent interest. 

    In another instance, a Korean gas station owner in Olympia paid Wilkerson nearly $9,000 for upgrades to the gas station’s cathodic protection system, which protects underground storage tanks from corrosion to prevent underground fuel leaks. Wilkerson performed the work without proper certification and never returned to do required testing to ensure the system was working properly. When the gas station owner paid another service provider to come out to do the required testing, the system failed. The owner discovered Wilkerson had used incorrect parts and had to pay to have all the work redone. Wilkerson stopped responding to the gas station owner and never refunded the money he was paid for the shoddy work. The court ordered Wilkerson to repay the business owner $13,163, which includes 12 percent interest.

    While the restitution provided by the court on Friday is limited to the nine impacted business owners who submitted declarations to the court, the Attorney General’s Office believes more businesses may have been harmed by Wilkerson’s conduct. Business owners who wish to report harm from Wilkerson or his companies should contact the Attorney General’s Office at civilrights@atg.wa.gov or toll-free by calling 1-833-660-4877 and selecting option 1. 

    Assistant Attorneys General Emily C. Nelson and Alyssa P. Au, Investigator Rebecca Pawul, and Paralegal Logan Young handled the case for Washington.

    Ecology asks Attorney General to investigate Wilkerson’s repeat violations

    The Attorney General’s Office filed the lawsuit against Wilkerson in March after the state Department of Ecology requested the office’s intervention. For years, Wilkerson repeatedly violated state regulations and disregarded penalties from Ecology.   

    Ecology received repeated complaints over many years from gas station owners and operators regarding Wilkerson. He faced multiple complaints for shoddy work that increased the risk of environmental damages, such as underground fuel leaks.

    Despite the penalties, Wilkerson remains undeterred. Ecology continues to receive new complaints about similar conduct by Wilkerson.

    To report a complaint to Ecology’s underground storage tank program, email tanks@ecy.wa.gov or call the UST Hotline at 800-826-7716.

    Anyone who believes they are the victim of unfair or deceptive business practices should file a complaint with the Attorney General’s Office: https://www.atg.wa.gov/file-complaint

    Read the Korean translation of this press release here. 

    Read the Punjabi translation of this press release here.

    -30-

    Washington’s Attorney General serves the people and the state of Washington. As the state’s largest law firm, the Attorney General’s Office provides legal representation to every state agency, board, and commission in Washington. Additionally, the Office serves the people directly by enforcing consumer protection, civil rights, and environmental protection laws. The Office also prosecutes elder abuse, Medicaid fraud, and handles sexually violent predator cases in 38 of Washington’s 39 counties. Visit http://www.atg.wa.gov to learn more.

    Media Contact:

    Brionna Aho, Communications Director, (360) 753-2727; Brionna.aho@atg.wa.gov

    General contacts: Click here

    MIL OSI USA News

  • MIL-OSI Canada: Radium Hot Springs Aquacourt: Federal Infrastructure Investment Completion and 75th Anniversary of Kootenay National Park

    Source: Government of Canada News

    Federal Infrastructure Investment Completion and 75th Anniversary Kootenay National Park.

    Renovations and improvements

     

    From 2016 to early 2024, Parks Canada completed $29 million in federally funded infrastructure updates at the Radium Hot Springs Aquacourt to improve safety while modernizing and enhancing the visitor experience. Special attention was taken to hire local contractors wherever possible to ensure that the local community, for whom the hot springs are a primary economic driver, continued to benefit while construction was underway.

    This work was part of a strategic effort to preserve the historical significance of the site while improving its facilities to meet contemporary standards of comfort and to improve accessibility. This included updates to the bathing pools and amenities. Upgrades to technology were also achieved.

    ·  Infrastructure Improvements: The Aquacourt infrastructure was upgraded to ensure safety and efficiency. This included updates to plumbing, electrical systems, mechanical systems and some structural enhancements to prolong the lifespan of the facility. These improvements also support conservation with the incorporation of green technologies.

    ·  Accessibility Enhancements: Efforts were made to improve accessibility for all those who visit. This involved installing and upgrading handrails and lifts and improving entry and exit to the site. The facility can now better accommodate individuals with mobility challenges.

    ·  Aesthetic and Comfort Upgrades: The interior and exterior of the Aquacourt underwent renovations to enhance the aesthetic appeal and comfort of the facility. This included renovating the restaurant, gift shop, and change rooms.

    ·  Environmental Sustainability: Measures were taken to promote environmental sustainability during the renovation process by installing energy-efficient geothermal energy systems to reduce the Aquacourt’s carbon footprint. Structural upgrades to culverts under the building have also safeguarded nearby fish habitats.

                                                                                                                  -30-

    MIL OSI Canada News

  • MIL-OSI Canada: Significant federal infrastructure improvements completed at Radium Hot Springs in Kootenay National Park

    Source: Government of Canada News

    Upgrades and repairs to beloved Aquacourt ensures the future of this heritage building.

    Upgrades and repairs to beloved Aquacourt ensures the future of this heritage building.

    October 21, 2024            Radium Hot Springs, British Columbia             Parks Canada

    The Radium Hot Springs Aquacourt, located in Kootenay National Park, hosts more than 200,000 visitors each year. The hot mineral waters that flow from the ground have drawn people to this place since time immemorial. These hot springs were known and used, both recently and historically, by the Ktunaxa and Secwépemc people for their therapeutic properties. They are sacred places of healing and rejuvenation.

    Today, the Honourable Steven Guilbeault, Minister of Environment and Climate Change and Minister responsible for Parks Canada, announced the completion of a federal infrastructure project to update and renew the Radium Hot Springs Aquacourt building of approximately $29 million. Members of the community marked the completion of the renovations at an event that also recognized the 75th anniversary of the start of construction of the Aquacourt. Building the Aquacourt was the first major construction project undertaken in the western national parks following the Second World War. The upgrades means that the Radium Hot Springs Aquacourt now offers a modern, safe, accessible and inclusive experience for visitors and community members alike.

    Investments in the Radium Hot Springs Aquacourt modernized the mechanical and electrical systems, including the installation of energy-efficient technology to leverage geothermal energy from the hot springs. The building was made more resilient to climate change through upgrades to the cold pool that help protect it from flooding and improve visitor safety. The installation of culverts under the building direct water flow to protect the foundation from erosion while safeguarding nearby fish habitats. The renovated restaurant, gift shop, and change rooms will support improved visitor experiences, along with a new rooftop sundeck and upgraded accessibility features including handrails, lifts, and improvements to the site entry and exit.

    Through infrastructure investments, the Government of Canada protects and conserves national treasures, while supporting local economies and contributing to growth in the tourism sector. By investing in the Radium Hot Springs Aquacourt, a Classified Federal Heritage Building, the Government of Canada is ensuring that future generations can continue to connect with nature in Kootenay National Park for years to come. These repairs and improvements ensure public safety and positive visitor experiences, support Parks Canada conservation efforts by incorporating green technologies and safeguarding natural habitats, strengthen climate resilience and protect built heritage in Canada. 

                                                                                                             -30-

    Hermine Landry
    Press Secretary     
    Office of the Minister of Environment and Climate Change
    873-455-3714
    hermine.landry@ec.gc.ca

    Lindsay McPherson
    External Relations Manager
    Lake Louise, Yoho, Kootenay Field Unit
    Parks Canada
    867-678-5667
    Lindsay.McPherson@pc.gc.ca

    MIL OSI Canada News

  • MIL-OSI USA: Justice Department Issues Comprehensive Proposed Rule Addressing National Security Risks Posed to U.S. Sensitive Data

    Source: US State of North Dakota

    Proposed Rule Would Establish New Program to Implement Executive Order to Prevent Access to Americans’ Sensitive Personal Data by Russia, Iran, China, and Other Countries of Concern

    Note: Read the Department’s fact sheet on this matter here.

    The Justice Department today issued a Notice of Proposed Rulemaking (NPRM) to implement President Biden’s Executive Order 14117 (the E.O.) of Feb. 28, “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern.” The E.O. addresses the national security threat posed by the continued effort of certain countries of concern to access and exploit certain kinds of Americans’ sensitive personal data. The President charged the Justice Department with the responsibility of establishing and implementing this new national security regulatory program to address these risks. On March 5, the Department’s Advance Notice of Proposed Rulemaking (ANPRM) was published in the Federal Register. Informed by extensive stakeholder outreach and careful consideration of comments the NPRM addresses public comments received on the ANPRM and proposes a rule to establish this new program and implement the E.O.

    This comprehensive proposed rule would implement the E.O. by establishing categorical rules for certain data transactions that pose an unacceptable risk of giving countries of concern or covered persons access to government-related data or bulk U.S. sensitive personal data. Among other things, the proposed rule identifies classes of prohibited and restricted transactions, identifies countries of concern and classes of covered persons to whom the proposed rule applies, identifies classes of exempt transactions, explains the Department’s methodology for establishing bulk thresholds, provides the Department’s initial assessment of economic and other regulatory impacts, establishes processes to issue licenses authorizing certain prohibited or restricted transactions, issue advisory opinions, and designate covered persons, and addresses recordkeeping, reporting, and other due-diligence obligations for covered transactions.

    The Justice Department’s National Security Division requests public comment on the proposed rule within 30 days of its publication in the Federal Register. The Department seeks comments on the proposed rule from industry, trade association groups, civil society, subject-matter experts, organizations and entities potentially affected by the proposed rule, and others with interest in the rule or expertise on data security and cybersecurity. The public may submit written comments on the NPRM at http://www.regulations.gov.

    The proposed rule is tailored to address the specific national security risks stemming from access by countries of concern and covered persons to Americans’ bulk sensitive personal data and certain sensitive U.S. government-related data. These measures complement the United States’ commitment to promoting an open, global, interoperable, reliable, and secure internet; protecting human rights online and offline; supporting a vibrant, global economy by promoting cross-border data flows that are required to enable international commerce and trade; and facilitating open investment.

    As previewed in the ANPRM, the proposed rule does not authorize the imposition of generalized data localization requirements to store Americans’ bulk sensitive personal data or U.S. Government-related data or to locate computing facilities used to process such data in the United States. As also previewed in the ANPRM, the proposed rule also does not broadly prohibit U.S. persons from engaging in commercial transactions, including exchanging financial and other data as part of the sale of commercial goods and services with countries of concern or covered persons, or impose measures aimed at a broader decoupling of the substantial consumer, economic, scientific, and trade relationships that the United States has with other countries. To reflect this, the NPRM proposes a new exemption for telecommunications services, provides further clarity on exemptions regarding financial services and intra-corporate-group transfers that were previewed in the ANPRM, and seeks public comment on a new proposed exemption for clinical-trial data.

    The proposed rule’s prohibitions and restrictions are consistent with other access restrictions on sensitive personal data that have been imposed in other contexts, including for transactions reviewed by the Committee on Foreign Investment in the United States (CFIUS) and the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector (Team Telecom). As the ANPRM previewed, the proposed rule exempts several classes of data transactions from the scope of its prohibitions and restrictions, including certain personal communications, financial services, corporate group transactions, transactions authorized by Federal law and international agreements, investment agreements subject to a CFIUS action, telecommunication services, biological product and medical device authorizations, clinical investigations, and others.

    As explained in the NPRM, countries of concern can use their access to these types of data to engage in malicious cyber-enabled activities and malign foreign influence activities, bolster their military capabilities, and track and build profiles on U.S. individuals (including members of the military and other Federal employees and contractors) for illicit purposes such as blackmail and espionage. Countries of concern can also exploit this data to collect information on activists, academics, journalists, dissidents, political opponents, or members of nongovernmental organizations or marginalized communities to intimidate them, curb political opposition, limit freedoms of expression, peaceful assembly, or association, or enable other forms of suppression of civil liberties.

    The proposed rule would require vendor agreements, employment agreements, and investment agreements that qualify as restricted transactions to comply with the separately proposed security requirements that have been developed by the Department of Homeland Security’s Cybersecurity and Infrastructure Agency (CISA) in coordination with the Justice Department. These proposed security requirements require U.S. persons engaging in a restricted transaction to comply with organizational and system-level requirements, such as ensuring that basic organizational cybersecurity policies, practices, and controls are in place, and data-level requirements, such as data minimization and masking, encryption, and privacy-enhancing techniques. CISA is concurrently making these proposed security requirements available for public comment at http://www.regulations.gov.

    MIL OSI USA News

  • MIL-OSI USA: Congressman Dan Goldman Works to Protect Americans from Reckless Gun Dealers

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

    Licensed Firearms Sellers Often Allowed to Continue Operating Despite Violating Federal Firearm License Law

    Lax Enforcement Has Put Guns in Hands of Domestic Abusers, Drug Traffickers, and Violent Felons

    Read the Bill Here

    Washington, DC – Congressman Dan Goldman (NY-10) joined Congresswoman Julia Brownley (CA-26) in introducing the ‘Protecting Americans from Reckless Gun Dealers Act,’ which would require the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to publish detailed annual reports on the number of gun dealers that have violated Federal Firearm License law and the outcomes of resulting disciplinary actions.

    “For far too long, negligent firearm dealers have been flouting existing law and flooding our streets with weapons of war, endangering our communities and fueling the gun violence public health crisis,” Congressman Dan Goldman said. “Any firearm dealer who knowingly allows a gun to fall into the wrong hands must face consequences, and I’m proud to join my colleagues in ensuring the ATF holds reckless licensed gun dealers accountable for their dangerous business practices.”

    While the ATF is charged with investigating and holding gun dealers who violate federal gun laws accountable, many gun dealers who violate the law continue to sell guns without having their Federal Firearm License revoked or without facing other disciplinary actions.

    In June 2021, the Biden Administration issued guidance ordering ATF inspectors to implement a zero-tolerance policy against licensed Federal firearm dealers who willfully sell to prohibited purchasers or sell guns without conducting background checks. As a result, the ATF revoked more firearm licenses in 2022 than in any year since 2008.

    The ‘Protecting Americans from Reckless Gun Dealers Act’ would require the ATF to annually report: 

    • The number of ATF inspections completed each month.

    • The number of federal firearm licenses revoked that year, including names and locations of gun dealers whose licenses have been revoked.

    • The number of federal firearm licenses not renewed in lieu of revocation that year, including names and locations of gun dealers whose licenses have not been renewed.

    • The number of federal firearms licensee inspections resulting in a Qualifying Violation for a revocation, regardless of inspection outcome.

    • The number of Inspections with Qualifying Violations where revocation was ultimately not pursued.

    • The number of non-revocation remedial actions taken by the ATF.

    Congressman Goldman is committed to holding gun dealers and manufacturers accountable for their role in perpetuating the gun violence epidemic.

    In January, the Congressman cosponsored the ‘Federal Firearm Licensee Act,’ which would modernize and strengthen the federal requirements for anyone who facilitates gun sales, including gun shops, gun shows, and websites. The legislation would update sections in the U.S. Code directed at federal firearms licensees (FFLs) that have not been updated in 30 years.

    In 2023, Goldman cosponsored the ‘Equal Justice for Victims of Gun Violence Act,’ which would ensure that victims of gun violence have their day in court, that negligent gun manufacturers are held liable when they disregard public safety, and that gun trace data can be accepted as evidence in court.

    Congressman Goldman has also cosponsored the ‘Default Proceed Sale Transparency Act’ to address the ‘Charleston Loophole,’ which allows some gun sales to be completed without a completed Federal Bureau of Investigation (FBI) background without a completed Federal Bureau of Investigation (FBI) background check.

    Congressman Goldman is a Vice Chair of the House Gun Violence Prevention Task Force and is Chair of the Dads Caucus Gun Violence Prevention Working Group.

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    MIL OSI USA News

  • MIL-OSI USA: Congressman Dan Goldman Convenes Small Business Workshop with Pace Small Business Development Program

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

    Goldman Joined by Andrew Flamm, Director of the Pace University Small Business Development Center

    Goldman, Flamm Highlighted Resources Provides to Help Boost Small Business Owners Boost Their Businesses

    Photos from the Event Can Be Found Here

    Brooklyn, NY – Congressman Dan Goldman (NY-10) yesterday convened a townhall workshop with Councilmember Alexa Avilés, Pace University Small Business Development Center (SBDC) Director Andrew Flamm, and partnering organizations to inform small business owners of the resources available to support them in New York City. The small business workshop connected the primarily minority-owned small businesses in Sunset Park to resources available to help boost their businesses.

    The small business workshop follows Congressman Goldman’s discussions in April with small business owners, where they relayed the difficulty they experience while trying to scale and market their business in New York City.

    “With 200,000 small businesses in New York City alone, ensuring small business owners have the resources they need to grow and expand is paramount for the health of our economy and our communities,” Congressman Dan Goldman said. “I was thrilled to join Pace University’s Small Business Development Center in Sunset Park today to discuss the invaluable resources they offer to small business owners. From financial modeling to access to financial markets and business strategy discussions, Pace’s Small Business Development Center is a crucial resource for our city. Small businesses are the foundation of Sunset Park and I will continue to provide as many tools as possibly to small business owners to expand their businesses and achieve the American dream.”

    Following a presentation from Pace University Small Business Development Center (SBDC) Director Andrew Flamm on resources provided by the Pace SBDC, Flamm and other local organizations held a resource fair to provide additional information and targeted resources to business owners.

    Also in attendance were the Sunset Park Business Improvement District, the Southwest Brooklyn Industrial Development Corporation, the Brooklyn Chamber of Commerce, and the Sunset Park Lions Club.

    Congressman Dan Goldman is committed to supporting small businesses across NY-10.

    Earlier this year, Goldman toured small businesses in New York City’s East Village to discuss the issues that they face and presented New York’s Small Businessperson of the Year, Chef Aneesa Waheed, with a Congressional Proclamation in recognition of her selection as the 2024 New York Small Businessperson of the Year by the United States Small Business Administration.

    In May, Goldman cosponsored the bipartisan ‘Employee Equity Investment Act’ (EEIA), which would incentivize employee business ownership by reducing the cost barriers that small business owners currently face when transferring ownership to their employees and empower owners to preserve family legacies and community jobs.

    Additionally, the Congressman cosponsored the ‘Child Care Small Business Insight and Improvement Act’ to increase U.S. Small Business Administration support for childcare small businesses. This bill would expand the U.S. Small Business Administration’s role in supporting for-profit childcare small businesses across the country.

    ###

    MIL OSI USA News

  • MIL-OSI Security: Atlanta Attorney Pleads Guilty in Syndicated Conservation Easement Tax Scheme

    Source: United States Department of Justice Criminal Division

    A Georgia man pleaded guilty last week to obstructing the IRS related to his participation in the promotion of abusive syndicated conservation easement tax shelters.

    According to court documents and statements made in court, Vi Bui was an attorney and partner at Sinnott & Co., an Atlanta-based company. Beginning in at least in 2012 and continuing through at least May 2020, Bui participated in a scheme to defraud the IRS by organizing, marketing, implementing and selling illegal syndicated conservation easement tax shelters created and organized by Jack Fisher, Sinnott and others. For their involvement in the scheme, Fisher and Sinnott were convicted at trial and in January sentenced to 25 and 23 years in prison, respectively.

    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. Appraisers would allegedly generate fraudulent and inflated appraisals of the conservation easements. The partnerships then claimed a charitable contribution tax deduction based on the inflated value of the conservation easement, resulting in a fraudulent tax deduction flowing to the wealthy clients who purchased units in the partnership. Many of these clients joined the tax shelters after the donation of the interest in land and after the close of the relevant tax year. Bui knew that, to make it appear that the participants had timely purchased their units in the tax shelters, Fisher, Sinnott and others backdated and instructed others to falsify documents, including subscription agreements, checks and other documents. And in at least one instance, Bui falsified documents himself.

    Bui anticipated that the syndicated conservation easement transactions would be audited. To deceive the IRS, Bui and others took steps to make the partnerships appear as legitimate real estate development companies. They would create and disseminate lengthy documents disguising the true nature of the transaction, institute sham “votes” for what to do with the land that the partnership owned despite knowing that outcome was predetermined and falsify paperwork, such as appraisals and subscription agreements.

    In one instance, when investigators conducted an undercover operation in 2018, Bui, believing that the IRS was auditing an individual’s 2014 tax return, prepared false documents that made it appear that the materials were executed before the purported donation of the conservation easement in 2014 and before the 2014 tax returns had been filed.

    Bui earned substantial income for his role in the illegal scheme. He also used the fraudulent tax shelters to evade his own taxes, filing false personal tax returns from 2013 through 2018 that claimed false tax deductions from the illegal syndicated conservation easement tax shelters.

    Bui is scheduled to be sentenced on Feb. 13, 2025, and faces a maximum penalty of three years in prison. Bui also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    To date, in addition to the convictions of Fisher and Sinnott noted above, nine additional defendants have pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme, including appraiser Walter Douglas “Terry” Roberts, accountants Stein Agee; Corey Agee, CPA; Ralph Anderson, CPA; James Benkoil, CPA; Victor Smith, CPA; William Tomasello, CPA; Herbert Lewis,  CPA; and Attorney Randall Lenz.

    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 Chief Guy Ficco of the IRS Criminal Investigation (IRS-CI) 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-CI 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 and deputy chief of the complex frauds section for the Northern District of Georgia  are prosecuting the case.

    MIL Security OSI

  • MIL-OSI Security: Justice Department Issues Comprehensive Proposed Rule Addressing National Security Risks Posed to U.S. Sensitive Data

    Source: United States Department of Justice Criminal Division

    Note: Read the Department’s fact sheet on this matter here.

    The Justice Department today issued a Notice of Proposed Rulemaking (NPRM) to implement President Biden’s Executive Order 14117 (the E.O.) of Feb. 28, “Preventing Access to Americans’ Bulk Sensitive Personal Data and United States Government-Related Data by Countries of Concern.” The E.O. addresses the national security threat posed by the continued effort of certain countries of concern to access and exploit certain kinds of Americans’ sensitive personal data. The President charged the Justice Department with the responsibility of establishing and implementing this new national security regulatory program to address these risks. On March 5, the Department’s Advance Notice of Proposed Rulemaking (ANPRM) was published in the Federal Register. Informed by extensive stakeholder outreach and careful consideration of comments the NPRM addresses public comments received on the ANPRM and proposes a rule to establish this new program and implement the E.O.

    This comprehensive proposed rule would implement the E.O. by establishing categorical rules for certain data transactions that pose an unacceptable risk of giving countries of concern or covered persons access to government-related data or bulk U.S. sensitive personal data. Among other things, the proposed rule identifies classes of prohibited and restricted transactions, identifies countries of concern and classes of covered persons to whom the proposed rule applies, identifies classes of exempt transactions, explains the Department’s methodology for establishing bulk thresholds, provides the Department’s initial assessment of economic and other regulatory impacts, establishes processes to issue licenses authorizing certain prohibited or restricted transactions, issue advisory opinions, and designate covered persons, and addresses recordkeeping, reporting, and other due-diligence obligations for covered transactions.

    The Justice Department’s National Security Division requests public comment on the proposed rule within 30 days of its publication in the Federal Register. The Department seeks comments on the proposed rule from industry, trade association groups, civil society, subject-matter experts, organizations and entities potentially affected by the proposed rule, and others with interest in the rule or expertise on data security and cybersecurity. The public may submit written comments on the NPRM at http://www.regulations.gov.

    The proposed rule is tailored to address the specific national security risks stemming from access by countries of concern and covered persons to Americans’ bulk sensitive personal data and certain sensitive U.S. government-related data. These measures complement the United States’ commitment to promoting an open, global, interoperable, reliable, and secure internet; protecting human rights online and offline; supporting a vibrant, global economy by promoting cross-border data flows that are required to enable international commerce and trade; and facilitating open investment.

    As previewed in the ANPRM, the proposed rule does not authorize the imposition of generalized data localization requirements to store Americans’ bulk sensitive personal data or U.S. Government-related data or to locate computing facilities used to process such data in the United States. As also previewed in the ANPRM, the proposed rule also does not broadly prohibit U.S. persons from engaging in commercial transactions, including exchanging financial and other data as part of the sale of commercial goods and services with countries of concern or covered persons, or impose measures aimed at a broader decoupling of the substantial consumer, economic, scientific, and trade relationships that the United States has with other countries. To reflect this, the NPRM proposes a new exemption for telecommunications services, provides further clarity on exemptions regarding financial services and intra-corporate-group transfers that were previewed in the ANPRM, and seeks public comment on a new proposed exemption for clinical-trial data.

    The proposed rule’s prohibitions and restrictions are consistent with other access restrictions on sensitive personal data that have been imposed in other contexts, including for transactions reviewed by the Committee on Foreign Investment in the United States (CFIUS) and the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector (Team Telecom). As the ANPRM previewed, the proposed rule exempts several classes of data transactions from the scope of its prohibitions and restrictions, including certain personal communications, financial services, corporate group transactions, transactions authorized by Federal law and international agreements, investment agreements subject to a CFIUS action, telecommunication services, biological product and medical device authorizations, clinical investigations, and others.

    As explained in the NPRM, countries of concern can use their access to these types of data to engage in malicious cyber-enabled activities and malign foreign influence activities, bolster their military capabilities, and track and build profiles on U.S. individuals (including members of the military and other Federal employees and contractors) for illicit purposes such as blackmail and espionage. Countries of concern can also exploit this data to collect information on activists, academics, journalists, dissidents, political opponents, or members of nongovernmental organizations or marginalized communities to intimidate them, curb political opposition, limit freedoms of expression, peaceful assembly, or association, or enable other forms of suppression of civil liberties.

    The proposed rule would require vendor agreements, employment agreements, and investment agreements that qualify as restricted transactions to comply with the separately proposed security requirements that have been developed by the Department of Homeland Security’s Cybersecurity and Infrastructure Agency (CISA) in coordination with the Justice Department. These proposed security requirements require U.S. persons engaging in a restricted transaction to comply with organizational and system-level requirements, such as ensuring that basic organizational cybersecurity policies, practices, and controls are in place, and data-level requirements, such as data minimization and masking, encryption, and privacy-enhancing techniques. CISA is concurrently making these proposed security requirements available for public comment at http://www.regulations.gov.

    MIL Security OSI

  • MIL-OSI USA: Team Maryland Announces More Than $38 Million for Critical Transportation & Port Infrastructure Projects in Baltimore

    US Senate News:

    Source: United States Senator for Maryland Ben Cardin
    WASHINGTON – U.S. Senators Ben Cardin and Chris Van Hollen, Congressmen Kweisi Mfume, Governor Wes Moore (all D-Md.), and Maryland Transportation Secretary Paul J. Wiedefeld today announced $38,406,076 in U.S. Department of Transportation awards to rehabilitate the Dundalk Marine Terminal and the Curtis Creek Drawbridge. This investment will improve vital infrastructure at and around the Port of Baltimore, which is critical to Maryland’s economy.
    “With these grants, the federal government is recognizing that Baltimore is home to nationally significant supply chain infrastructure that is overdue for investment and improvement. We are seeing once again how the Biden-Harris Administration’s historic Infrastructure Investment and Jobs Act is delivering for Maryland, and we will continue to push for federal commitments to our infrastructure, including the rebuilding of the Francis Scott Key Bridge,” said Senator Cardin. 
    “Through the Infrastructure Investment and Jobs Act, we continue to deliver historic resources to upgrade everything from our transportation network to the Port of Baltimore. With these major federal investments, we are priming the Port for future growth – while sustaining the thousands of jobs it already supports – and modernizing an essential bridge for commuting and commerce. These efforts will help drive Baltimore’s economic success and create more good paying jobs for Marylanders,” said Senator Van Hollen.
    “This monumental federal investment is a transformative display of the continued unity among us in Team Maryland to deliver for all of those who have been personally affected by the collapse of the Francis Scott Key Bridge and continue to navigate the recovery alongside us. After speaking with so many of those impacted, I was and remain inspired by their grit, fierceness, and commitment to getting through this disaster together,” said Congressman Kweisi Mfume.
    “These two projects reinforce the Moore-Miller Administration’s commitment to making Maryland more competitive by investing in our critical infrastructure, including our world-class Port of Baltimore,” said Governor Moore. “We are grateful for the partnership from the Biden-Harris Administration, the U.S. Department of Transportation and our Congressional delegation in supporting projects that will serve all Marylanders and help expand our growing economy.”
    “Together, these federal grants will support increased economic growth at the Port of Baltimore and the greater Baltimore region,” said Secretary Wiedefeld. “The funding will support critical rehabilitation efforts at the Dundalk Martine Terminal, the largest publicly owned terminal in the Port, and the Curtis Creek Drawbridge on I-695.  Thank you to our federal delegation and partners for their continued commitment in rebuilding Baltimore’s infrastructure better than before.”
    “Thanks to the Bipartisan Infrastructure Law, the Biden-Harris administration is carrying out ambitious, complex transportation projects that will shape our country’s infrastructure for generations to come,” said U.S. Transportation Secretary Pete Buttigieg. “With this latest round of awards, dozens of major and much-needed projects – projects that are often difficult to fund through other means – are getting the long-awaited investment they need to move forward.”
    The funding was awarded by the U.S. Department of Transportation’s Infrastructure for Rebuilding America Grant Program (INFRA), which has administered historic levels of federal investments through the Infrastructure Investment and Jobs Act.
    $30,906,076, Dundalk Marine Terminal: Awarded to the Maryland Port Administrationto reconstruct Berth 11, consisting of the rehabilitation and replacement of 597 linear feet of wharf deck including pilings, substructure, storm water drainage, utilities, and installation of new mooring bollards, cleats, pneumatic fenders, flood barriers, and tidal gates.
    $7,500,000, Curtis Creek Drawbridge Rehabilitation: Awarded to the Maryland Transportation Authority to rehabilitate parallel drawbridges over Curtis Creek on I-695. The project will replace portions of the reinforced concrete deck, perform repairs to the exposed steel superstructure and existing catwalks, remove and replace bridge parapets, traffic lights, and low-level lights, and install new electrical service systems, drainage systems, and pavement markings.
    The Infrastructure for Rebuilding America Grant Program provides funding for multimodal freight and highway projects of national or regional significance to improve the safety, efficiency, and reliability of the movement of freight and people in and across rural and urban areas. 

    MIL OSI USA News

  • MIL-OSI USA: Cassidy Announces $4 Million for 11 Louisiana Infrastructure, Transportation, Economic Development Projects from His Infrastructure Law

    US Senate News:

    Source: United States Senator for Louisiana Bill Cassidy
    WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) announced Louisiana will receive $4,084,100.00 from the Delta Regional Authority (DRA) to boost economic development and improve the quality of life for Louisiana communities and residents thanks to his Infrastructure Investment and Jobs Act (IIJA).
    “This is great news for Louisiana and an investment in our economy and workforce,” said Dr. Cassidy. “Thanks to the Infrastructure Law, which I helped negotiate, we can expect to see even more dollars coming our way.” 
    The 11 new investment projects will improve water and sewer systems, update transportation infrastructure, and bolster electrical reliability for 18,000 residents in communities across Louisiana. 
    Funding for these projects is provided by the States’ Economic Development Assistance Program (SEDAP), which provides direct investment into community-based and regional projects to support basic public infrastructure, transportation infrastructure, workforce training and education, and small businesses development with an emphasis on entrepreneurship, and the Community Infrastructure Fund (CIF), which targets physical infrastructure projects that help build safer, more resilient communities in the Delta region. DRA coordinates directly with the Office of the Governor for the State of Louisiana and its local development districts for program funding implementation.
    Grant Awarded
    Recipient
    Project Description
    $509,000.00
    City of West Monroe
    This grant will provide federal funding to update and improve 770 feet of sewer infrastructure in Downtown West Monroe to help bolster the city’s growth, development and economic sustainability. 
    $509,000.00
    Town of Maurice
    This grant will provide federal funding to make water system improvements to service the town’s rapidly increasing population, remedy existing public health concerns and violations, and improve residents’ quality of life.
    $509,000.00
    North Desoto Water System
    This grant will provide federal funding to construct a new drinking water booster station to serve the Town of Stonewall, and other surrounding areas, to improve water storage and pumping capacity for the purposes of alleviating pressure on existing undersized stations, ensuring reliable water supply, and supporting new residential and economic developments.
    $509,000.00
    City of Minden
    This grant will provide federal funding for a water main replacement project to guarantee that the city’s distribution system continues to receive sufficient water and to improve the overall reliability, sustainability and fire protection of the system.
    $454,000.00
    Town of Marion
    This grant will provide federal funding to repair, rehabilitate and improve a 64-year-old sewer lift station to address poor conditions and health-code violations linked to the existing station and to provide and maintain adequate sewer service for residents.
    $418,100.00
    City of Kaplan
    This grant will provide federal funding to support a sewer system improvement project, which involves a comprehensive rehabilitation of the system to improve the resiliency and functionality of the city’s sewer collection system.
    $375,000.00
    Ouachita Parish
    This grant will provide federal funding for an emergency operations center renovation project, a critical infrastructure project that will play a vital role in ensuring effective emergency management and response capabilities in the region. 
    $304,000.00
    Ochsner LSU Health – Monroe Medical Center
    This grant will provide federal funding to install a new electrical distribution system to improve the center’s electrical infrastructure, resulting in increased electrical reliability and capacity and expansion of community services. 
    $218,000.00
    Village of Plaucheville
    This grant will provide federal funding to construct a new water main, which will reduce service disruptions and improve the water system for the entire village.
    $199,000.00
    Town of Lockport
    This grant will provide federal funding to make critical improvements to the sewer and wastewater treatment systems that are foundational to the town’s ability to sustain its rich Cajun cultural heritage, a livable community, and the increasingly important tourism economy.
    $80,000.00
    Town of Waterproof
    This grant will provide federal funding for a sewer improvement project that will replace the backup pumps inside of five sewer lift stations, providing additional capacity to meet usage demands from the town’s residents, businesses and detention center while also addressing regulations set by the Department of Environmental Quality.

    MIL OSI USA News

  • MIL-OSI USA: California Man Pleads Guilty to Selling Unapproved Drugs with Intent to Defraud over the Internet

    Source: US Department of Health and Human Services – 3

    Department of Justice
    U.S. Attorney’s Office
    District of Vermont

    FOR IMMEDIATE RELEASE
    Thursday, October 17, 2024

    Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on October 17, 2024, Jeremy Brown, 55, of Simi Valley, California, pleaded guilty to introducing into interstate commerce new drugs not approved by the Food and Drug Administration (“FDA”) with the intent to defraud or mislead.

    According to court records, between March 2019 and December 2023, Brown operated a company, Warrior Labz SARMs, and accompanying websites through which he sold unapproved versions of prescription drugs and other substances. Specifically, Brown sold Selective Androgen Receptor Modulators (“SARMs”), which are substances similar to anabolic steroids; unapproved versions of erectile-dysfunction drugs Viagra and Cialis; and unapproved versions of weight-loss drugs Ozempic, Wegovy, and Rybelsus.

    Brown falsely claimed on his websites that the drugs offered for sale were for “research purposes only” and “not for human consumption.” Alongside those claims, however, were claims that the drugs would provide various benefits affecting the structure and function of the human body.

    Brown obtained the bulk of the drugs he sold from China. Brown did not verify shipping or storage conditions, nor did he use a lab to verify the contents of the drugs he received from China. But he falsely claimed on his websites that his company used only the highest quality pharmaceutical grade ingredients and U.S. manufacturing practices.

    After receiving a warning letter from the FDA in June 2023, Brown continued to sell unapproved drugs over the internet. Between August and December 2023, Brown made three sales of unapproved drugs to an undercover law enforcement account in Vermont.

    Brown faces up to three years in prison and a $250,000 fine. The actual sentence, however, will be determined by the Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.

    “Drugs that are produced and distributed outside the FDA’s oversight present the risk of harm to the public health,” said Special Agent in Charge Fernando McMillan, FDA Office of Criminal Investigations, New York Field Office.  “We remain committed to pursuing and bringing to justice those who attempt to subvert the regulatory functions of the FDA by distributing unapproved, and potentially dangerous, products.”

    United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Food and Drug Administration and the United States Postal Inspection Service.

    The prosecutor is Assistant United States Attorney Corinne Smith. Brown is represented by Rick Collins, Esq. and Lisa Shelkrot, Esq.

    MIL OSI USA News

  • MIL-OSI USA: Orlando Doctor Indicted For Offering To Inject Silicone For Gluteal Augmentation Procedure

    Source: US Department of Health and Human Services – 3

    Department of Justice
    U.S. Attorney’s Office
    Middle District of Florida

    FOR IMMEDIATE RELEASE
    Thursday, October 17, 2024

    Orlando, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Nhan Pham (54, Orlando) with three counts of violations of the Federal Food, Drug, and Cosmetic Act for receiving in interstate commerce and proffering delivery of an adulterated device, misbranding a device after its shipment in interstate commerce, and failing to register as a device manufacturer. If convicted, Pham faces up to three years in federal prison on each count. The indictment also notifies Pham that the United States intends to forfeit any adulterated or misbranded device, any property used to commit the violations, and any proceeds traceable to the offense.

    According to the indictment, in October 2019, Pham received liquid silicone in interstate commerce and offered to inject the silicone into a person’s body for a gluteal augmentation procedure. Such use of injectable silicone has not been approved by the United States Food and Drug Administration (FDA).

    An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

    “Injectable silicone for body contouring is not FDA-approved and can cause serious injury and even death,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who place American consumers at risk.”

    This case was investigated by the FDA Office of Criminal Investigations and the Metropolitan Bureau of Investigation, with assistance from the Pasco Sheriff’s Office and the United States Marshals Service. It will be prosecuted by Assistant United States Attorney Diane Hu.

    MIL OSI USA News

  • MIL-OSI Security: Eau Claire Man Sentenced to 3 Years for Wire Fraud

    Source: Office of United States Attorneys

    Robert E. Carter Forged Financial Statements to Fraudulently Obtain Semi-Trucks

    MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Robert E. Carter, 45, Eau Claire, Wisconsin was sentenced October 17, 2024 by U.S. District Judge William M. Conley to three years in prison for wire fraud and attempted wire fraud.  Carter was convicted of these charges on July 16, 2024, following a jury trial.

    Carter’s fraud scheme started in 2018 when he feigned interest in purchasing a trucking company headquartered in Fond du Lac, Wisconsin. After telling elaborate lies about owning private jets and a personal yacht, Carter convinced the owners that he wanted to buy their trucking and brokerage companies for $10 million.  Carter then sent the owners a letter of intent that required them to provide Carter, under the guise of due diligence, with the companies’ sensitive business information, including financial statements. Carter eventually informed the companies’ owners that Carter needed to back out of the deal; however, he held on to the financial statements for two years.

    In 2020, Carter intentionally changed the financial statements that he fraudulently obtained from the Fond du Lac-based companies and made it appear as if the documents belonged to Carter’s businesses. Carter then submitted the phony financial statements to an equipment leasing company so Carter could fraudulently obtain three semi-trucks and two trailers.

    While defrauding the first leasing company, Carter simultaneously downloaded financial statements from the Internet that belonged to a charitable trust in Iowa.

    Again, Carter intentionally changed these financial statements so the documents appeared to belong to Carter’s trust.  Carter then submitted the fake trust financial statements to a second equipment leasing company in an attempt to fraudulently lease ten more semi-trucks.

    In sentencing Carter, Judge Conley highlighted Carter’s criminal history, which included prior convictions for fraud.

    The charges against Carter were the result of an investigation conducted by IRS Criminal Investigations and the Federal Bureau of Investigation, with assistance provided by the Office of the U.S. Trustee for the Western District of Wisconsin. Assistant U.S. Attorneys Chadwick M. Elgersma and Megan R. Stelljes prosecuted this case. 

    MIL Security OSI

  • MIL-OSI Security: South Texan sent to prison for receiving child porn via messaging app

    Source: Office of United States Attorneys

    McALLEN, Texas – A 21-year-old resident of Edinburg has been ordered to prison for receipt of child pornography depicting prepubescent minors, announced U.S. Attorney Alamdar S. Hamdani.

    Lazaro Segundo-Vazquez pleaded guilty May 15, 2023, admitting he received over 1,800 images and video files containing child sexual abuse material.

    Chief U.S. District Judge Randy Crane has now sentenced Segundo-Vazquez to 78 months in federal prison. He must also pay $3,000 in restitution to three victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Segundo-Vazquez will also be ordered to register as a sex offender.

    An alert from the National Center for Missing and Exploited Children led authorities to a residence in Edinburg appearing to be uploading child pornography to a Google account. The investigation revealed Segundo-Vazquez received images and videos containing child sexual abuse material via a third-party messaging application on his cellular phone.

    Segundo-Vazquez admitted to receiving child sexual abuse material that included videos and images of prepubescent children and toddlers. The material depicted children engaged in sexual acts with adults and other children. Segundo-Vazquez then uploaded several images of child sexual abuse material to a Google account.

    He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

    Homeland Security Investigations – Rio Grande Valley Child Exploitation Task Force conducted the investigation.

    Assistant U.S. Attorney Cahal P. McColgan prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.

    MIL Security OSI

  • MIL-OSI Security: Poplar Bluff Man Admits Recording His Rape of Minor

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

    CAPE GIRARDEAU – A man from Poplar Bluff, Missouri on Friday admitted recording his rape of a minor with an intellectual disability.

    Jason R. Hicks-Simpson, 46, pleaded guilty in U.S. District Court in Cape Girardeau to one count of sexual exploitation of a minor.

    The 17-year-old victim sought help from Hicks-Simpson’s girlfriend in getting the abuse to stop, according to the plea agreement. The girlfriend contacted the victim’s mother, who called the Poplar Bluff Police Department in March of 2024. The victim told investigators that Hicks-Simpson had been sexually abusing her since she was five, the plea says. She also said Hicks-Simpson threatened to kill her and her kittens if she did not keep it a secret.

    After his arrest, Hicks-Simpson told police that it had only happened once several months earlier. Investigators found videos dating back to May of 2023 on his phone, the plea says.

    Hicks-Simpson is scheduled to be sentenced Jan. 31, 2025. As part of the plea agreement, both sides have agreed to recommend 20 years in prison.

    The Poplar Bluff Police Department and the FBI investigated the case. Assistant U.S. Attorney Julie Hunter is prosecuting the case.

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

    MIL Security OSI

  • MIL-OSI New Zealand: Parliament Hansard Report – Wednesday, 23 October 2024 – Volume 779 – 001429

    Source: New Zealand Parliament – Hansard

    ORAL QUESTIONS

    QUESTIONS TO MINISTERS

    Question No. 1—Finance

    1. DAN BIDOIS (National—Northcote) to the Minister of Finance: What recent reports has she seen on Government finances?

    Hon NICOLA WILLIS (Minister of Finance): The year-end financial statements for the 2023-2024 financial year show net core Crown debt of $175 billion, which is 42.5 percent of GDP. The good news is that this is lower than the Budget forecast. The bad news is that over the past six years, Government debt has skyrocketed. Some of this, of course, was due to COVID, but Government spending outside of COVID also increased significantly. Overall, net debt has gone from 19.4 percent of GDP to 42.5 percent, which, in dollar terms, colleagues, is an increase of $118 billion over six years, and the cost of financing that debt has also risen to $8.9 billion a year.

    Dan Bidois: How much did net debt increase in the year 2023 to 2024?

    Hon NICOLA WILLIS: Net core Crown debt at the beginning of the year was $155 billion. Over the course of the year, an extra $6 billion was borrowed to cover the cash deficit from core Crown operating activities. This is what’s known as borrowing to pay for the groceries. Another $13 billion was borrowed for investments. These include capital expenditure, for things like roads and schools; advances; contributions to the Superannuation Fund; and there was a $1 billion fair value movement in financial assets and liabilities. That adds up to a $20 billion increase in net debt over the year.

    Dan Bidois: What are the Government’s objectives for debt?

    Hon NICOLA WILLIS: Core Crown operating cash-flows have been negative since 2019-2020, meaning the Government has been borrowing for the groceries for five years straight, and, obviously, that is not sustainable. Debt should be used to fund investments and deal with economic shocks, not to fund operating activities. The coalition Government also has an objective to stop the rise in net debt as a percentage of GDP, put it on a downward trajectory towards 40 percent, and eventually keep it below that level, subject to shocks.

    Dan Bidois: Will the Government need to borrow for tax relief?

    Hon Members: It already has!

    Hon NICOLA WILLIS: This is an answer which members opposite should listen to. The Government will not need to borrow at all for tax relief. Tax relief is fully funded. Neither has tax relief added to inflation. Let me remind members that there were some in this House who stood up and declared that tax relief will lead to higher inflation for longer, and they must feel so embarrassed now that annual inflation is down to 2.2 percent. Don’t trust the economic forecasts of the team opposite.

    Hon David Seymour: Has the Minister seen any recent reports that the debt could be approximately $860 million lower had the previous Government adopted the new Government’s model for delivering the healthy school lunch model at half the price, and, if so, does the Government have more plans to do things smarter; bring business, Government, and civil society together; and deliver better results for less money?

    Hon NICOLA WILLIS: Yes, it is correct that the Minister is not just delivering butter chicken; he’s delivering savings, too. He reflects a sentiment that the Government is very much attached to, which is that the whole reason for managing the books well is so that we can deliver better services to New Zealanders. We do not presume that doing things the way they have always been done is the best way, and we will always be on the lookout for opportunities to drive better value for money.

    MIL OSI New Zealand News

  • MIL-OSI USA: Major Iowa Airports to Receive Over $8.7 Million in Grassley-Backed Federal Funding

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    BUTLER COUNTY, IOWA – Three Iowa airports will receive a total of more than $8.7 million to modernize and expand terminal areas and infrastructure. The U.S. Department of Transportation will administer the awards through its Airport Terminal Program, which was established by the Grassley-backed Infrastructure Investment and Jobs Act (IIJA).

    “Iowa’s airports facilitate high volume passenger travel and move our world-class products to market. Keeping our airports in top shape ensures travelers’ safety and strengthens our local economy,” Grassley said. “I supported the bipartisan infrastructure law with Iowans in mind, and I’m glad our state continues to see significant returns on that investment.”

    Federal awards will be disbursed as follows:

    • Des Moines International Airport will receive $3,600,000 for the construction of four new terminal gates and holdrooms.
    • Eastern Iowa Airport will receive $3,600,000 for the construction of a new baggage handling control system for the expanded airport terminal.
    • Sioux Gateway Airport will receive $1,564,466 for the acquisition and installation of a new passenger boarding bridge.

    -30-

    MIL OSI USA News

  • MIL-OSI Australia: Regional Australia Institute Regions Rising summit

    Source: Australian Ministers 1

    **CHECK AGAINST DELIVERY**

    Thank you, Liz for the kind introduction, as well as for your tireless work advocating for our wonderful regions.

    As always, I begin by acknowledging the Aboriginal People as the custodians of this lands on which me gather. We acknowledge and pay our respects to all Tasmanian Aboriginal Communities. Being here in Launceston – with your beautiful rivers, forests, hills and gorges, it is easy to imagine how Indigenous Tasmanians cared for and protected these lands for countless generations. 

    I extend those same respects to all First Nations people joining us today.

    Thank you to the Regional Australia Institute for inviting me to this event.

    It is wonderful to be with you and to see so many mayors, councillors, friends and colleagues in the audience now and throughout the course of the day, including: 

    • The Hon Jeremy Rockliff, Premier of Tasmania,
    • Bridget Archer MP, Member for Bass,
    • Senator Colbeck, and;
    • Mayor Matthew Garwood from the City of Launceston – it is a delight to be in your city.

    Fostering robust regional economies is incredibly important and I know this is a goal the everybody here pursues with passion and determination. 

    The Institute was established under a Labor government back in 2011. When we returned to Government in 2022, we committed additional funding to support the Institute’s independent, fact-driven, future-focused work.

    It’s been a pleasure to watch the Institute grow its reach across regional Australia, sharing ideas with communities near and far.

    Regional communities across Australia are coming up with innovative plans and strategies every single day, and this roving series has an important role to play in sharing those successes as broadly as possible. 

    Fittingly, we are meeting in a place that is full of success stories. 

    Launceston is a regional city that is home to some of the best examples of regional urban development in the nation.

    Across the river, we have the Launceston City Heart project, which has transformed central Launceston into one of Australia’s premier public spaces, turning the centre of this city into a vibrant retail, cultural and business precinct.

    Then, just outside these doors we have the UTAS Inveresk Campus – one of Launceston’s biggest ever infrastructure projects.

    Last year, I was here with the Premier and the Mayor to open the River’s Edge building. It is an architectural masterpiece that isn’t only creating jobs now, but that will attract and educate generations of students right here in Launceston, as well as creating immeasurable benefits to the confidence and growth of this city for decades to come.

    And my colleague, Jason Clare, opened The Shed – the last of the three major new buildings to be opened as part of this project and a fantastic example of how to reduce embodied carbon in infrastructure. It’s well worth a look at if you get the opportunity. 

    And, of course, just a drop punt away we have York Park – the soon to be northern home of the Tasmania Football Club.

    With $130m of new matchday facility, entertainment and seating upgrades on the way, football fans not only across Tasmania, but across the nation, can begin to get excited about the prospect of coming right here to Launceston to watch their favourite team in action.

    Speaking as a Victorian, it’s hard to think of any more attractive weekend getaways than coming to Launceston to watch your team play.

    These projects are transforming this region, driving innovation, growth and a powerful sense of community spirit.

    Of course, they also have one important thing in common – each of those projects is a partnership between different levels of government, with businesses, with sporting groups, with the university and with the broader community.

    They are also all projects that are targeted at one specific community, responding to the needs on the ground here.

    These projects are what Launceston needs and wants for a successful future, but not every community in the country has those same requirements.

    We know that the priorities here in Launceston will differ from those in Leeton or Longreach. 

    That is why our Regional Investment Framework recognises that a one-size-fits-all approach to regional development doesn’t cut it.

    This framework provides a consistent, coordinated investment approach across Government, responsive to the unique strengths and challenges of our diverse regions.

    It places regions and their people at the centre of decision-making by:

    • valuing local voices and local priorities;
    • taking an evidence-based approach to investment;
    • and coordinating across all levels of government.

    While we can see the success of that approach writ large right here in Launceston, it is an approach we are duplicating across the country as we invest in the social and community infrastructure that makes our regional communities such wonderful places to live.

    For the first time, our government has grants programs targeted at every community in Australia – from rural to the inner cities, and the peri-urban areas in between.

    In regional Australia, our Growing Regions Program is providing funding of between $500,000 to $15 million to local governments and not-for-profits for eligible capital works projects.

    Forty projects in the first round of funding for this program has been announced which included a $11 million commitment to the City Mission Launceston Community Precinct development which will provide an integrated housing space, healthcare and community services hub. 

    Round 2 has recently closed, which makes $394 million available for further important community and economic projects that will enhance the liveability of our regions. 

    And our $400 million Regional Precincts and Partnerships Program is looking to fund transformative investments in regional, rural and remote Australia based on the aims of unifying regional places, growing their economies and serving their communities. 

    The projects to be funded – in Broome, Colac, Swan Hill, Noosa and other locations around Australia have already been announced, transforming those communities in the same way that Launceston has been changed by the City Heart project.

    But, we also know that the growth that successful regional development can bring carries with it its own challenge, none larger than what we are seeing in housing right now in every corner of the country.

    My colleague Housing Minister Clare O’Neil is leading on a range of critical policy approaches there – including the $2 billion Social Housing Accelerator, the $10 billion Housing Australia Future Fund and the National Housing Accord.

    In my portfolio space, I am working on two important levers – enabling infrastructure and planning reform.

    Through the Housing Support Program and its Priority Works Stream, we are partnering with state, territory and local governments to ensure local roads, utility connections and community infrastructure are developed alongside new housing.

    We have nearly $1.5 billion on the table through that program to unplug blockages in the housing pipeline.

    At the same time, we are undertaking planning reforms to enable new housing developments.

    To help the process along, the Australian Government has funded the planning stream of the Housing Support Program, which provides $50 million for state, territory and local government to try new planning approaches. 

    This means getting more people into the industry, getting planning settings right and accommodating new housing targets in existing plans. 

    What it means is taking more pressure off families and communities, and building more housing that they can afford.

    Projects like this are essential to ensuring the liveability and sustainability of our regional towns and cities. They keep people living here and they attract new residents.

    But the sustainability of regions is much broader than our built infrastructure – and the is where the “Circular Economy in Action – Regional Perspectives” report that we are launching today comes in.

    This research, which was funded through the Intergovernmental Shared Inquiry Program, demonstrates how communities are employing approaches tailored to their regions.

    And just like it does in the space of regional development, the City of Launceston serves as a good example of this in action with its updated procurement policy focusing on material sourcing, manufacturing, packaging to check if products can be repaired, re-purposed or re-used.

    Now, the local industry is harnessing opportunities to re-use waste materials like glass, rubber and demolition waste including concrete, metal and bricks.

    These examples show how shifting to sustainable practices can benefit both the economy and the environment, making communities stronger and more resilient.

    Collaboration is central to implementing circular initiatives. Grassroots circular economy initiatives, such as community repair workshops and second-hand markets, offer cost-effective alternatives to new purchases.

    The Australian Government is fostering a circular economy where we waste less and reuse more.

    We’ve already embedded circularity across many flagship programs including the $15 billion National Reconstruction Fund and $7 billion Northern Australia Infrastructure Facility.  

    To provide advice on the opportunities and barriers in this area, we established the Circular Economy Ministerial Advisory Group, which will deliver its final advice at the end of the year.

    And we are developing a new National Circular Economy Framework, which will set the pace and direction for Australia’s transition. 

    It will include targets, priority supply chains, and describe what needs to happen across the economy to catalyse our transition. 

    We want to properly understand how to leverage our competitive advantages to set up our regions for success.  

    The circular economy isn’t only good for the environment, it is good for our economy.

    By re-using and repairing more of what we own, we can create opportunities through the supply chain for regional businesses and workers, creating a more vibrant region and community for us all to enjoy.

    Thank you very much for your time today, as well as to all of you who worked so hard on this important report.

    MIL OSI News

  • MIL-OSI China: Yuan-based assets seen more alluring

    Source: China State Council Information Office

    File photo shows a worker counts Chinese currency renminbi at a bank in Lianyungang, east China’s Jiangsu Province. [Photo/Xinhua]

    Renminbi financial assets are set to attract more foreign investment in the months ahead after foreign holdings of onshore bonds and equities rose amid the country’s sharpening policy focus on shoring up asset prices, according to officials and analysts.

    “We have the conditions and confidence that China’s cross-border capital flows will maintain a stable and positive trajectory in the coming months of the year and beyond,” said Jia Ning, head of the Balance of Payments Department of the State Administration of Foreign Exchange.

    SAFE data showed on Tuesday that foreign investment in Chinese bonds saw a continuous and stable influx, amassing over $80 billion in net increases in the first three quarters.

    A “noticeable improvement” in foreign investment in onshore stocks has emerged recently, according to SAFE, without disclosing specific figures.

    James Wang, head of China strategy at UBS Investment Bank Research, said that focus from foreign investors on the country has picked up as the latest policy moves appeared to be aimed at lifting asset prices, which would support expectations and consumption via the wealth effect.

    “We believe a stabilization in some key economic indicators, particularly nominal retail sales, could see some long-only investors come back to the China (stock) market,” Wang said, though a greater level of volatility in the equity market is likely, given the short-term nature of capital inflows so far.

    Since late September, Chinese policymakers have launched a series of stimulus measures with a particular emphasis on stabilizing the property market and bolstering the stock market. The People’s Bank of China, the country’s central bank, launched its first policy tools specially aimed at boosting stock market liquidity.

    On Monday, the PBOC conducted the first operation of a new swap facility — which enables financial institutions to swap less liquid securities for more liquid ones and pledge them for lending to invest in the capital market — at a size of 50 billion yuan ($7.02 billion).

    Share-buying transactions financed through the facility were made by China International Capital Corp Ltd on Tuesday.

    Informed sources said the central bank will continue to conduct the facility operation in batches as necessary and will expand the size of the facility based on the actual situation after the initial 500 billion yuan in quota is used up.

    The implementation of a special central bank lending program to buy back shares and boost share holdings with an initial quota of 300 billion yuan also got underway. As of Sunday, 23 listed companies said they had applied for over 10 billion yuan of the loans in total, and more are expected to follow suit.

    China’s benchmark Shanghai Composite Index closed up 0.54 percent at 3285.87 points on Tuesday, while the onshore renminbi came in at around 7.12 against the greenback as of Tuesday afternoon, weakening by 82 basis points from the previous session.

    “Foreign investment in China’s capital markets is still in a nascent stage, with holdings of renminbi-denominated assets accounting for 3 percent to 4 percent of the domestic bond and stock markets,” said Li Hongyan, deputy head of SAFE.

    “There is room for further growth given a multitude of favorable factors,” Li said, adding that a package of incremental policies has consolidated China’s long-term positive economic momentum.

    Total holdings of onshore renminbi bonds by foreign investors have surpassed $640 billion so far, marking a historic high, with treasury bonds and bonds issued by policy-oriented banks the preferred investment targets, she said.

    According to SAFE, the accumulative amount of cross-border receipts and payments by non-banking sectors was $5.2594 trillion and $5.2566 trillion during the January-September period, respectively, representing a surplus of $2.8 billion.

    In September, the surplus surged to $60.2 billion amid improved foreign investment and continued inflows from trade, SAFE data showed.

    Guan Tao, global chief economist at BOCI China, said that in the base case scenario that the United States achieves a soft landing and continues interest rate cuts, foreign institutions may continue to boost holdings in renminbi bonds, especially treasury bonds, as yield spreads further narrow.

    MIL OSI China News

  • MIL-OSI China: US firms continue to seek investment opportunities in Chinese market

    Source: China State Council Information Office 3

    Tourists take the sight-seeing cable car in Chongqing, southwest China, Aug. 20, 2024. [Photo/Xinhua]

    Many U.S. companies are seeking investment opportunities in the Chinese market amid China’s introduction of a host of incremental policies to support economic growth.

    On Monday and Tuesday, a roundtable meeting between the National Development and Reform Commission (NDRC) and U.S. multinationals was held in southwest China’s Chongqing Municipality.

    Representatives from about 60 U.S. companies and chambers of commerce participated in the meeting.

    Several U.S. companies have recently announced increases in their investments in China, viewing it as a long-term, high-growth market, said Michael Hart, president of the American Chamber of Commerce in China, while adding that he hopes China’s opening-up policies rolled out this year will inject vitality into the Chinese economy.

    China’s recent incremental policies have reinforced enterprises’ confidence in the Chinese market, encouraging them to expand research and development, production and recruitment, said Tao Lin, vice president of Tesla.

    A number of foreign enterprises have participated in China’s national program of large-scale equipment renewals and trade-in of durable consumer goods, according to NDRC official Wen Hua. The program, which targets green and digital transformation, is open to foreign companies, including American firms, that can leverage their own strengths and offer competitive products and technologies, Wen said.

    The NDRC is revising the Catalog of Encouraged Industries for Foreign Investment, and efforts will be made to enhance the transparency of policy formulation and improve services for foreign-funded enterprises, said Hua Zhong, an official of the NDRC.

    The NDRC established the roundtable meeting mechanism in 2021 and nine related activities have taken place thus far. The aim of this mechanism is to encourage U.S. enterprises to participate deeply in building a higher-level open economy, while also sharing in the dividends resulting from the high-quality development of China’s economy.

    MIL OSI China News

  • MIL-OSI China: Leap in Sino-African ties foreseen

    Source: People’s Republic of China – State Council News

    The current global economic slowdown and shocks to industrial and supply chains have presented China and Africa with a crucial opportunity to scale up mutual cooperation and move it to a higher level, officials and experts said.

    A shift in China-Africa investment cooperation toward higher-end industries, digitalization, and green development is a vital step in facilitating the inclusive growth of both sides, they said.

    They made the remarks at the Symposium on High-Quality Development of China-Africa Investment Cooperation on Monday, which was jointly hosted by the China-Africa Development Fund and the Chinese Academy of International Trade and Economic Development in Beijing.

    The complementary economic and industrial development profiles of China and Africa have formed a solid basis for their thriving cooperation, said Jing Ning, deputy director-general at the department of Western Asian and African affairs under the Ministry of Commerce.

    The synergistic pairing of China’s technologies, equipment and management expertise with Africa’s markets and human resources has been a key driving force behind the advancement of the continent’s industrialization, technological innovation, and youth employment, Jing said.

    China’s investments in Africa are not only growing in volume but are also strategically oriented toward ensuring that Africa becomes a global manufacturing hub, said Rahamtalla M. Osman, permanent representative of the African Union to China.

    Africa’s green development potential, renewable energy needs, youth population and emerging consumer markets, coupled with the opportunities presented by the African Continental Free Trade Area, have made it a promising investment destination, Osman said.

    The Chinese government announced plans to facilitate at least 70 billion yuan ($9.8 billion) in investments by Chinese companies in Africa over the next three years during the Summit of the Forum on China-Africa Cooperation in Beijing in September.

    Meanwhile, China and Africa will establish a joint digital technology cooperation center and 20 flagship digital demonstration projects. China is committed to equipping African nations with the latest advancements in clean energy technologies, including solar, wind, and hydropower systems.

    As Chinese enterprises expand their investments in Africa, they are not only pursuing their own interests, but also striving to bring tangible benefits to African countries, said Wang Shaodan, chairman of the China-Africa Development Fund.

    CADF, along with partner enterprises, is actively promoting technology transfers to African countries, transitioning from “Made in China” to “Made in Africa” and enhancing the local industrial development capabilities, Wang said.

    In 2013, Chinese home appliances manufacturer Hisense and the CADF jointly invested $350 million to establish Hisense South Africa Industrial Park, where the company has promoted technology transfer and upskilled local workers.

    This has enabled South Africa to acquire manufacturing capabilities and develop export-ready brands for the European market, Wang added.

    China is also working to facilitate the transfer of agricultural technologies to Africa through a wide range of cooperation modalities, which is crucial for enhancing Africa’s food security, said Yu Zirong, vice-president of the Chinese Academy of International Trade and Economic Development.

    Africa is currently facing the dual dilemma of debt and development, and Chinese financial institutions and enterprises are exploring the expansion of new collaborative models to address this challenge, said Yu Yong, deputy director-general of the department of African affairs under the Ministry of Foreign Affairs.

    These new approaches, including public-private partnership, and integrated investment-construction-operation model, are designed to ensure the continuous funding and liquidity needed to support Africa’s industrialization, ultimately leading to a reduction in the continent’s debt burden, Yu said.

    MIL OSI China News