Category: Intelligence Agencies

MIL-OSI: TrustCo Reports First Quarter 2025 Net Income of $14.3 Million From Repricing Loan Portfolio and Well-Managed Cost of Funds

Source: GlobeNewswire (MIL-OSI)

Executive Snapshot:

Bank-wide financial results:
- Key metrics for the first quarter 2025:
  - Net income of $14.3 million increased 17.7% compared to $12.1 million for the first quarter 2024
  - Net interest income of $40.4 million, up 10.4% from $36.6 million compared to the first quarter 2024
  - Average loans were up $104.7 million for the first quarter 2025 compared to the first quarter 2024
  - Average deposits were up $103.3 million for the first quarter 2025 compared to the first quarter 2024

Capital position and key ratios:
- Consolidated equity to assets increased to 10.85% as of March 31, 2025 from 10.51% as of March 31, 2024
- Book value per share as of March 31, 2025 was $36.16, up from $34.12 as of March 31, 2024
- Stock repurchase program announced authorizing for up to one million shares or approximately 5% of TrustCo’s current outstanding common stock

Trustco Financial Services and Wealth Management income:
- Fees increased to $2.1 million or 16.7% compared to first quarter 2024
- Assets under management increased to $1.2 billion or 17.4% compared first quarter 2024

GLENVILLE, N.Y., April 21, 2025 (GLOBE NEWSWIRE) —

TrustCo Bank Corp NY (TrustCo, NASDAQ: TRST) today announced a robust start to 2025, marked by significant growth in both the loan and deposit portfolios of Trustco Bank during the first quarter of 2025 compared to the first quarter of 2024. This performance underscores the Bank’s commitment to serving its community through increased residential and commercial lending and adapting effectively to the evolving financial landscape. This resulted in first quarter 2025 net income of $14.3 million or $0.75 diluted earnings per share, compared to net income of $12.1 million or $0.64 diluted earnings per share for the first quarter 2024. Average loans increased $104.7 million or 2.1% for the first quarter 2025 over the same period in 2024. Average deposits increased $103.3 million or 1.9% for the first quarter 2025 over the same period in 2024.

Overview

Chairman, President, and CEO, Robert J. McCormick said “We are very pleased to announce today that tried and true Trustco Bank strategy has once again yielded exceptional results. We added loans at current market rates, which repriced our current loan portfolio higher, supporting long-term profitability. This was funded entirely by our own deposits, and we did so while holding the line on board rates. Despite aggressive market competition, we have favorably repriced our time deposits with the help of strong brand loyalty and digital engagement. These efforts yielded net income of $14.3 million and boosted all return metrics significantly year-over-year. Credit quality remains exceptional, with non-performing loans holding steady at a negligible 0.37%. The Bank also grew capital and thus maintains its position of strength. Based upon what we have seen in the first quarter, we anticipate that good things are likely in the future.”

Details

Average loans were up $104.7 million, or 2.1%, in the first quarter 2025 over the same period in 2024. Average residential loans and HECLs, our primary lending focus, were up $26.2 million, or 0.6%, and $61.0 million, or 17.3%, respectively, in the first quarter 2025 over the same period in 2024. Average commercial loans also increased $20.7 million, or 7.5%, in the first quarter 2025 over the same period in 2024. This uptick reflects a strong local economy and increased demand for credit. Average deposits were up $103.3 million, or 1.9%, for the first quarter 2025 over the same period in 2024, primarily as a result of an increase in time deposits, interest bearing checking accounts, and demand deposits. We believe the increase in these deposits compared to the same period in 2024 continues to indicate strong customer confidence in the Bank’s competitive deposit offerings. As we move forward, despite a complex economic environment, we believe that our strategic focus on relationship banking and solid financial practices has positioned us for continued success.

During the first quarter of 2025, the TrustCo announced a stock repurchase program of up to one million shares, or approximately 5% of TrustCo’s current outstanding shares of common stock. This repurchase initiative is part of the Bank’s broader capital management strategy and is intended to enhance shareholder value while maintaining flexibility to support future growth. As of March 31, 2025, our equity to asset ratio was 10.85%, compared to 10.51% as of March 31, 2024. Book value per share as of March 31, 2025 was $36.16, up 6.0% compared to $34.12 a year earlier.

Net interest income was $40.4 million for the first quarter 2025, an increase of $3.8 million, or 10.4%, compared to the first quarter of 2024, driven by loan growth at higher interest rates and less interest expense on deposit products, partially offset by lower investment interest income and a decrease in interest on federal funds sold and other short-term investments. The net interest margin for the first quarter 2025 was 2.64%, up 20 basis points from 2.44% in the first quarter of 2024. The yield on interest earnings assets increased to 4.13% in the first quarter of 2025, up 14 basis points from 3.99% in the first quarter of 2024. The cost of interest bearing liabilities decreased to 1.92% in the first quarter 2025, down from 1.99% in the first quarter 2024. As the Federal Reserve signals potential interest rate reductions in 2025, the Bank is proactively preparing to navigate the evolving rate environment. In this context, the Bank anticipates that a lower interest rate environment will provide opportunities to manage deposit costs more effectively, thereby supporting net interest margin. The Bank remains committed to maintaining competitive deposit offerings while ensuring financial stability and continued support for our communities’ banking needs.

Non-interest income increased to $5.0 million as compared to $4.8 million for the first quarter of 2024. This increase was primarily attributable to wealth management and financial services fees, which increased by 16.7% to $2.1 million, driven by strong client demand and higher assets under management. These revenues now represent 42.6% of non-interest income. The majority of this fee income is recurring, supported by long-term advisory relationships and a growing base of managed assets. Non-interest expense increased $1.4 million over the first quarter of 2024 due to increases in several areas of expenses.

Asset quality remains strong and has been consistent over the past twelve months. The Company recorded a provision for credit losses of $300 thousand in the first quarter of 2025, which is the result of a provision for credit losses on loans of $100 thousand, and a provision for credit losses on unfunded commitments of $200 thousand. The ratio of allowance for credit losses on loans to total loans was 0.99% and 0.98% as of March 31, 2025 and 2024, respectively. The allowance for credit losses on loans was $50.6 million as of March 31, 2025, compared to $49.2 million as of March 31, 2024. Nonperforming loans (NPLs) were $18.8 million as of March 31, 2025, compared to $18.3 million as of March 31, 2024. NPLs were 0.37% of total loans as of March 31, 2025 and 2024. The coverage ratio, or allowance for credit losses on loans to NPLs, was 269.8% as of March 31, 2025, compared to 269.3% as of March 31, 2024. Nonperforming assets (NPAs) were $20.9 million as of March 31, 2025, compared to $20.6 million as of March 31, 2024.

A conference call to discuss first quarter 2025 results will be held at 9:00 a.m. Eastern Time on April 22, 2025. Those wishing to participate in the call may dial toll-free for the United States at 1-833-470-1428, and for Canada at 1-833-950-0062, Access code 048251. A replay of the call will be available for thirty days by dialing toll-free for the United States at 1-866-813-9403, Access code 486810. The call will also be audio webcast at https://events.q4inc.com/attendee/647533404,and will be available for one year.

About TrustCo Bank Corp NY

TrustCo Bank Corp NY is a $6.3 billion savings and loan holding company and through its subsidiary, Trustco Bank, operated 136 offices in New York, New Jersey, Vermont, Massachusetts, and Florida as of March 31, 2025.

In addition, the Bank’s Wealth Management Department offers a full range of investment services, retirement planning and trust and estate administration services. The common shares of TrustCo are traded on the NASDAQ Global Select Market under the symbol TRST.

Forward-Looking Statements

All statements in this news release that are not historical are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipate,” “intend,” “plan,” “goal,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future development, results or periods. Examples of forward-looking statements include, among others, statements we make regarding our expectations for our future performance, including our expectations regarding the effects of the economic environment on our financial results, our ability to retain customers and the amount of customers’ business, including deposit balances, with us, the impact of the Federal Reserve’s actions regarding interest rates, and the anticipated effects of our capital management strategy, including our stock repurchase program. Forward-looking statements are based on management’s current expectations as well as certain assumptions and estimates made by, and information available to, management at the time the statements are made. Such forward-looking statements are subject to factors and uncertainties that could cause actual results to differ materially for TrustCo from the views, beliefs and projections expressed in such statements, and many of the risks and uncertainties are heightened by or may, in the future, be heightened by volatility in financial markets and macroeconomic or geopolitical concerns related to inflation, changes in United States and foreign trade policy, continued elevated interest rates and ongoing armed conflicts (including the Russia/Ukraine conflict and the conflict in Israel and surrounding areas). TrustCo wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The following important factors, among others, in some cases have affected and in the future could affect TrustCo’s actual results and could cause TrustCo’s actual financial performance to differ materially from that expressed in any forward-looking statement: future changes in interest rates; external economic factors, such as changes in monetary policy, ongoing inflationary pressures and continued elevated prices; exposure to credit risk in our lending activities; our increasing commercial loan portfolio; the sufficiency of our allowance for credit losses on loans to cover actual loan losses; our ability to meet the cash flow requirements of our depositors or borrowers or meet our operating cash needs to fund corporate expansion and other activities; claims and litigation pertaining to fiduciary responsibility and lender liability; the enforcement of federal cannabis laws and regulations and its impact on our ability to provide services in the cannabis industry; our dependency upon the services of the management team; our disclosure controls and procedures’ ability to prevent or detect errors or acts of fraud; the adequacy of our business continuity and disaster recovery plans; the effectiveness of our risk management framework; the impact of any expansion by us into new lines of business or new products and services; an increase in the prevalence of fraud and other financial crimes; the impact of severe weather events and climate change on us and the communities we serve, including societal responses to climate change; environmental, social and governance risks, as well as diversity, equity, and inclusion-related risks, and their impact on our reputation and relationships; the chance of a prolonged economic downturn, especially one affecting our geographic market area; instability in global economic conditions and geopolitical matters, as well as volatility in financial markets; the soundness of other financial institutions; U.S. government shutdowns, credit rating downgrades, or failure to increase the debt ceiling; fluctuations in the trust wealth management fees we receive as a result of investment performance; the impact of regulatory capital rules on our growth; changes in laws and regulations, including changes in cybersecurity or privacy regulations; restrictions on data collection and use; our compliance with the USA PATRIOT Act, Bank Secrecy Act, and other laws and regulations that could result in material fines or sanctions; changes in tax laws; limitations on our ability to pay dividends; TrustCo Realty Corp.’s ability to qualify as a real estate investment trust; changes in accounting standards; competition within our market areas; consumers and businesses’ use of non-banks to complete financial transactions; our reliance on third-party service providers; the impact of data breaches and cyber-attacks; the development and use of artificial intelligence; the impact of a failure in or breach of our operational or security systems or infrastructure, or those of third parties; the impact of an unauthorized disclosure of sensitive or confidential client or customer information; the impact of interruptions in the effective operation of our computer systems; the impact of anti-takeover provisions in our organizational documents; the impact of the manner in which we allocate capital; and other risks and uncertainties under the heading “Risk Factors” in our most recent annual report on Form 10-K and, if any, in our subsequent quarterly reports on Form 10-Q or other securities filings, as well as our upcoming quarterly report on Form 10-Q for the first quarter of 2025. The forward-looking statements contained in this news release represent TrustCo management’s judgment as of the date of this news release. TrustCo disclaims, however, any intent or obligation to update forward-looking statements, either as a result of future developments, new information or otherwise, except as may be required by law.

TRUSTCO BANK CORP NY
GLENVILLE, NY

FINANCIAL HIGHLIGHTS

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	3/31/2025			12/31/2024			3/31/2024
Summary of operations
Net interest income	$	40,373		$	38,902		$	36,578
Provision for credit losses		300			400			600
Noninterest income		4,974			4,409			4,843
Noninterest expense		26,329			28,165			24,903
Net income		14,275			11,281			12,126

Per share
Net income per share:
– Basic	$	0.75		$	0.59		$	0.64
– Diluted		0.75			0.59			0.64
Cash dividends		0.36			0.36			0.36
Book value at period end		36.16			35.56			34.12
Market price at period end		30.48			33.31			28.16

At period end
Full time equivalent employees		740			737			761
Full service banking offices		136			136			140

Performance ratios
Return on average assets		0.93	%		0.73	%		0.80	%
Return on average equity		8.49			6.70			7.54
Efficiency ratio (GAAP)		58.06			65.03			59.94
Adjusted Efficiency ratio (1)		58.00			63.93			59.94
Net interest spread		2.21			2.15			2.00
Net interest margin		2.64			2.60			2.44
Dividend payout ratio	47.97				60.70			56.48

Capital ratios at period end
Consolidated equity to assets		10.85	%		10.84	%		10.51	%
Consolidated tangible equity to tangible assets (1)		10.84	%		10.83	%		10.50	%

Asset quality analysis at period end
Nonperforming loans to total loans		0.37	%		0.37	%		0.37	%
Nonperforming assets to total assets		0.33			0.34			0.33
Allowance for credit losses on loans to total loans		0.99			0.99			0.98
Coverage ratio (2)	2.7x			2.7x			2.7x


(1) Non-GAAP Financial Measure, see Non-GAAP Financial Measures Reconciliation.
(2) Calculated as allowance for credit losses on loans divided by total nonperforming loans.


CONSOLIDATED STATEMENTS OF INCOME

(dollars in thousands, except per share data)
(Unaudited)
	Three months ended
	3/31/2025		12/31/2024		9/30/2024		6/30/2024		3/31/2024
Interest and dividend income:
Interest and fees on loans	$	53,450	$	53,024	$	52,112	$	50,660	$	49,804
Interest and dividends on securities available for sale:
U. S. government sponsored enterprises		596		680		718		909		906
State and political subdivisions		–		–		–		1		–
Mortgage-backed securities and collateralized mortgage
obligations – residential		1,483		1,418		1,397		1,451		1,494
Corporate bonds		260		358		361		362		476
Small Business Administration – guaranteed
participation securities		81		84		90		94		100
Other securities		7		6		2		2		3
Total interest and dividends on securities available for sale		2,427		2,546		2,568		2,819		2,979

Interest on held to maturity securities:
obligations – residential		57		59		62		65		68
Total interest on held to maturity securities		57		59		62		65		68

Federal Home Loan Bank stock		151		152		153		147		152

Interest on federal funds sold and other short-term investments		6,732		6,128		6,174		6,894		6,750
Total interest income		62,817		61,909		61,069		60,585		59,753

Interest expense:
Interest on deposits:
Interest-bearing checking		558		397		311		288		240
Savings		734		719		770		675		712
Money market deposit accounts		1,989		2,024		2,154		2,228		2,342
Time deposits		18,983		19,680		18,969		19,400		19,677
Interest on short-term borrowings		180		187		194		206		204
Total interest expense		22,444		23,007		22,398		22,797		23,175

Net interest income		40,373		38,902		38,671		37,788		36,578

Less: Provision for credit losses		300		400		500		500		600
Net interest income after provision for credit losses		40,073		38,502		38,171		37,288		35,978

Noninterest income:
Trustco Financial Services income		2,120		1,778		2,044		1,609		1,816
Fees for services to customers		2,645		2,226		2,482		2,399		2,745
Net gains on equity securities		–		–		23		1,360		–
Other		209		405		382		283		282
Total noninterest income		4,974		4,409		4,931		5,651		4,843

Noninterest expenses:
Salaries and employee benefits		11,894		12,068		12,134		12,520		11,427
Net occupancy expense		4,554		4,563		4,271		4,375		4,611
Equipment expense		1,944		2,404		1,757		1,990		1,738
Professional services		1,726		1,782		1,863		1,570		1,460
Outsourced services		2,700		3,051		2,551		2,755		2,501
Advertising expense		361		590		339		466		408
FDIC and other insurance		1,188		1,113		1,112		797		1,094
Other real estate expense, net		28		476		204		16		74
Other		1,934		2,118		1,969		1,970		1,590
Total noninterest expenses		26,329		28,165		26,200		26,459		24,903

Income before taxes		18,718		14,746		16,902		16,480		15,918
Income taxes		4,443		3,465		4,027		3,929		3,792

Net income	$	14,275	$	11,281	$	12,875	$	12,551	$	12,126

Net income per common share:
– Basic	$	0.75	$	0.59	$	0.68	$	0.66	$	0.64

– Diluted		0.75		0.59		0.68		0.66		0.64

Average basic shares (in thousands)		19,020		19,015		19,010		19,022		19,024
Average diluted shares (in thousands)		19,044		19,045		19,036		19,033		19,032


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(dollars in thousands)
(Unaudited)
	3/31/2025			12/31/2024			9/30/2024			6/30/3024				3/31/2024
ASSETS:

Cash and due from banks	$	48,782		$	47,364		$	49,659		$	42,193		$	44,868
Federal funds sold and other short term investments		707,355			594,448			473,306			493,920			564,815
Total cash and cash equivalents		756,137			641,812			522,965			536,113			609,683

Securities available for sale:
U. S. government sponsored enterprises		65,942			85,617			90,588			106,796			128,854
States and political subdivisions		18			18			26			26			26
Mortgage-backed securities and collateralized mortgage
obligations – residential		219,333			213,128			222,841			218,311			227,078
Small Business Administration – guaranteed
participation securities		13,683			14,141			15,171			15,592			16,260
Corporate bonds		24,779			44,581			54,327			53,764			53,341
Other securities		698			700			701			688			682
Total securities available for sale		324,453			358,185			383,654			395,177			426,241

Held to maturity securities:
Mortgage-backed securities and collateralized mortgage
obligations-residential		5,090			5,365			5,636			5,921			6,206
Total held to maturity securities		5,090			5,365			5,636			5,921			6,206

Federal Reserve Bank and Federal Home Loan Bank stock		6,507			6,507			6,507			6,507			6,203

Loans:
Commercial		302,753			286,857			280,261			282,441			279,092
Residential mortgage loans		4,380,561			4,388,302			4,382,674			4,370,640			4,354,369
Home equity line of credit		419,806			409,261			393,418			370,063			355,879
Installment loans		13,017			13,638			14,503			15,168			16,166
Loans, net of deferred net costs		5,116,137			5,098,058			5,070,856			5,038,312			5,005,506

Less: Allowance for credit losses on loans		50,606			50,248			49,950			49,772			49,220
Net loans		5,065,531			5,047,810			5,020,906			4,988,540			4,956,286

Bank premises and equipment, net		37,178			33,782			33,324			33,466			33,423
Operating lease right-of-use assets		34,968			36,627			37,958			38,376			39,647
Other assets		108,681			108,656			98,730			102,544			101,881

Total assets	$	6,338,545		$	6,238,744		$	6,109,680		$	6,106,644		$	6,179,570

LIABILITIES:
Deposits:
Demand	$	793,306		$	762,101		$	753,878		$	745,227		$	742,997
Interest-bearing checking		1,067,948			1,027,540			988,527			1,029,606			1,020,136
Savings accounts		1,094,968			1,086,534			1,092,038			1,144,427			1,155,517
Money market deposit accounts		478,872			465,049			477,113			517,445			532,611
Time deposits		2,061,576			2,049,759			1,952,635			1,840,262			1,903,908
Total deposits		5,496,670			5,390,983			5,264,191			5,276,967			5,355,169

Short-term borrowings		82,275			84,781			91,450			89,720			94,374
Operating lease liabilities		38,324			40,159			41,469			42,026			43,438
Accrued expenses and other liabilities		33,468			46,478			43,549			42,763			37,399

Total liabilities		5,650,737			5,562,401			5,440,659			5,451,476			5,530,380

SHAREHOLDERS’ EQUITY:
Capital stock		20,097			20,097			20,058			20,058			20,058
Surplus		259,182			258,874			257,644			257,490			257,335
Undivided profits		453,931			446,503			442,079			436,048			430,346
Accumulated other comprehensive loss, net of tax		(132	)		(3,861	)		(6,600	)		(14,268	)		(14,763	)
Treasury stock at cost		(45,270	)		(45,270	)		(44,160	)		(44,160	)		(43,786	)

Total shareholders’ equity		687,808			676,343			669,021			655,168			649,190

Total liabilities and shareholders’ equity	$	6,338,545		$	6,238,744		$	6,109,680		$	6,106,644		$	6,179,570

Outstanding shares (in thousands)		19,020			19,020			19,010			19,010			19,024

NONPERFORMING ASSETS

(dollars in thousands)
(Unaudited)
	3/31/2025			12/31/2024			9/30/2024			6/30/2024			3/31/2024
Nonperforming Assets

New York and other states*
Loans in nonaccrual status:
Commercial	$	688		$	343		$	466		$	741		$	532
Real estate mortgage – 1 to 4 family		14,795			14,671			15,320			14,992			14,359
Installment		139			108			163			131			149
Total non-accrual loans		15,622			15,122			15,949			15,864			15,040
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		15,622			15,122			15,949			15,864			15,040
Other real estate owned		2,107			2,175			2,503			2,334			2,334
Total nonperforming assets	$	17,729		$	17,297		$	18,452		$	18,198		$	17,374

Florida
Loans in nonaccrual status:
Commercial	$	–		$	–		$	314		$	314		$	314
Real estate mortgage – 1 to 4 family		3,135			3,656			3,176			2,985			2,921
Installment		3			22			5			22			–
Total non-accrual loans		3,138			3,678			3,495			3,321			3,235
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		3,138			3,678			3,495			3,321			3,235
Other real estate owned		–			–			–			–			–
Total nonperforming assets	$	3,138		$	3,678		$	3,495		$	3,321		$	3,235

Total
Loans in nonaccrual status:
Commercial	$	688		$	343		$	780		$	1,055		$	846
Real estate mortgage – 1 to 4 family		17,930			18,327			18,496			17,977			17,280
Installment		142			130			168			153			149
Total non-accrual loans		18,760			18,800			19,444			19,185			18,275
Other nonperforming real estate mortgages – 1 to 4 family		–			–			–			–			–
Total nonperforming loans		18,760			18,800			19,444			19,185			18,275
Other real estate owned		2,107			2,175			2,503			2,334			2,334
Total nonperforming assets	$	20,867		$	20,975		$	21,947		$	21,519		$	20,609


Quarterly Net (Recoveries) Chargeoffs

New York and other states*
Commercial	$	(3	)	$	62		$	65		$	–		$	–
Real estate mortgage – 1 to 4 family		41			(316	)		104			(74	)		(78	)
Installment		4			41			11			(2	)		36
Total net chargeoffs (recoveries)	$	42		$	(213	)	$	180		$	(76	)	$	(42	)

Florida
Commercial	$	(315	)	$	314		$	–		$	–		$	–
Real estate mortgage – 1 to 4 family		–			–			–			17			–
Installment		15			1			42			7			–
Total net (recoveries) chargeoffs	$	(300	)	$	315		$	42		$	24		$	–

Total
Commercial	$	(318	)	$	376		$	65		$	–		$	–
Real estate mortgage – 1 to 4 family		41			(316	)		104			(57	)		(78	)
Installment		19			42			53			5			36
Total net (recoveries) chargeoffs	$	(258	)	$	102		$	222		$	(52	)	$	(42	)


Asset Quality Ratios

Total nonperforming loans (1)	$	18,760		$	18,800		$	19,444		$	19,185		$	18,275
Total nonperforming assets (1)		20,867			20,975			21,947			21,519			20,609
Total net (recoveries) chargeoffs (2)		(258	)		102			222			(52	)		(42	)

Allowance for credit losses on loans (1)		50,606			50,248			49,950			49,772			49,220

Nonperforming loans to total loans		0.37	%		0.37	%		0.38	%		0.38	%		0.37	%
Nonperforming assets to total assets		0.33	%		0.34	%		0.36	%		0.35	%		0.33	%
Allowance for credit losses on loans to total loans		0.99	%		0.99	%		0.99	%		0.99	%		0.98	%
Coverage ratio (1)		269.8	%		267.3	%		256.9	%		259.4	%		269.3	%
Annualized net (recoveries) chargeoffs to average loans (2)		-0.02	%		0.01	%		0.02	%		0.00	%		0.00	%
Allowance for credit losses on loans to annualized net chargeoffs (2)		N/A			123.2x			56.3x			N/A			N/A

* Includes New York, New Jersey, Vermont and Massachusetts.
(1) At period-end
(2) For the three-month period ended

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY –
INTEREST RATES AND INTEREST DIFFERENTIAL

(dollars in thousands)
(Unaudited)	Three months ended							Three months ended
	March 31, 2025							March 31, 2024
	Average			Interest		Average		Average			Interest		Average
	Balance					Rate		Balance					Rate
Assets

Securities available for sale:
U. S. government sponsored enterprises	$	74,680		$	596	3.19	%	$	125,973		$	906	2.88	%
Mortgage backed securities and collateralized mortgage
obligations – residential		239,509			1,483	2.46			258,814			1,494	2.30
State and political subdivisions		18			–	6.77			26			0	6.90
Corporate bonds		40,019			260	2.60			73,625			476	2.59
Small Business Administration – guaranteed
participation securities		15,003			81	2.15			18,224			100	2.20
Other		699			7	4.01			696			3	1.72

Total securities available for sale		369,928			2,427	2.62			477,358			2,979	2.50

Federal funds sold and other short-term Investments		613,646			6,732	4.45			497,652			6,750	5.45

Held to maturity securities:
Mortgage backed securities and collateralized mortgage
obligations – residential		5,233			57	4.34			6,329			68	4.30

Total held to maturity securities		5,233			57	4.34			6,329			68	4.30

Federal Home Loan Bank stock		6,507			151	9.28			6,203			152	9.80

Commercial loans		297,926			4,165	5.59			277,183			3,661	5.28
Residential mortgage loans		4,385,646			42,614	3.89			4,359,476			40,415	3.71
Home equity lines of credit		413,981			6,435	6.30			353,004			5,464	6.22
Installment loans		12,967			236	7.37			16,128			264	6.58

Loans, net of unearned income		5,110,520			53,450	4.19			5,005,791			49,804	3.98

Total interest earning assets		6,105,834		$	62,817	4.13			5,993,333		$	59,753	3.99

Allowance for credit losses on loans		(50,475	)						(48,824	)
Cash & non-interest earning assets		201,154							185,230


Total assets	$	6,256,513						$	6,129,739


Liabilities and shareholders’ equity

Deposits:
Interest bearing checking accounts	$	1,038,218		$	558	0.22	%	$	990,130		$	240	0.10	%
Money market accounts		469,070			1,989	1.72			544,687			2,342	1.73
Savings		1,089,358			734	0.27			1,158,558			712	0.25
Time deposits		2,054,494			18,984	3.75			1,889,929			19,677	4.19

Total interest bearing deposits		4,651,140			22,265	1.94			4,583,304			22,971	2.02
Short-term borrowings		83,207			180	0.88			93,316			204	0.88

Total interest bearing liabilities		4,734,347		$	22,445	1.92			4,676,620		$	23,175	1.99

Demand deposits		761,800							726,299
Other liabilities		78,748							80,158
Shareholders’ equity		681,618							646,662

Total liabilities and shareholders’ equity	$	6,256,513						$	6,129,739

Net interest income				$	40,372						$	36,578

Net interest spread						2.21	%						2.00	%


Net interest margin (net interest income to
total interest earning assets)						2.64	%						2.44	%

Non-GAAP Financial Measures Reconciliation

Tangible book value per share is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible book value by excluding the balance of intangible assets from total shareholders’ equity divided by shares outstanding. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity exclusive of changes in intangible assets.

Tangible equity as a percentage of tangible assets at period end is a non-GAAP financial measure derived from GAAP-based amounts. We calculate tangible equity and tangible assets by excluding the balance of intangible assets from total shareholders’ equity and total assets, respectively. We calculate tangible equity as a percentage of tangible assets at period end by dividing tangible equity by tangible assets at period end. We believe that this is consistent with the treatment by bank regulatory agencies, which exclude intangible assets from the calculation of risk-based capital ratios. Additionally, we believe that this measure is important to many investors in the marketplace who are interested in relative changes from period to period in equity and total assets, each exclusive of changes in intangible assets.

Adjusted efficiency ratio is a non-GAAP measures of expense control relative to revenue from net interest income and non-interest fee income. We calculate the efficiency ratio by dividing total non-interest expense by the sum of net interest income and total non-interest income. We calculate the adjusted efficiency ratio by dividing total noninterest expenses as determined under GAAP, excluding other real estate expense, net, by net interest income and total noninterest income as determined under GAAP. We believe that this provides a reasonable measure of primary banking expenses relative to primary banking revenue. Additionally, we believe this measure is important to investors looking for a measure of efficiency in our productivity measured by the amount of revenue generated for each dollar spent.

We believe that these non-GAAP financial measures provide information that is important to investors and that is useful in understanding our financial results. Our management internally assesses our performance based, in part, on these measures. However, these non-GAAP financial measures are supplemental and not a substitute for an analysis based on GAAP measures. As other companies may use different calculations for these measures, this presentation may not be comparable to other similarly titled measures reported by other companies. A reconciliation of the non-GAAP measures of tangible book value to shares outstanding, tangible equity as a percentage of tangible assets, and efficiency ratio to the most directly comparable GAAP measures is set forth below.

NON-GAAP FINANCIAL MEASURES RECONCILIATION

(dollars in thousands)
(Unaudited)
		3/31/2025			12/31/2024			3/31/2024
Tangible Book Value Per Share

Equity (GAAP)		$	687,808		$	676,343		$	649,190
Less: Intangible assets			553			553			553
Tangible equity (Non-GAAP)		$	687,255		$	675,790		$	648,637

Shares outstanding			19,020			19,020			19,024
Tangible book value per share			36.13			35.53			34.10
Book value per share			36.16			35.56			34.12

Tangible Equity to Tangible Assets
Total Assets (GAAP)		$	6,338,545		$	6,238,744		$	6,179,570
Less: Intangible assets			553			553			553
Tangible assets (Non-GAAP)		$	6,337,992		$	6,238,191		$	6,179,017

Equity to Assets (GAAP)			10.85	%		10.84	%		10.51	%
Tangible Equity to Tangible Assets (Non-GAAP)			10.84	%		10.83	%		10.50	%

		Three months ended
Efficiency and Adjusted Efficiency Ratios		3/31/2025			12/31/2024			3/31/2024

Net interest income (GAAP)	A	$	40,373		$	38,902		$	36,578
Non-interest income (GAAP)	B		4,974			4,409			4,843
Revenue used for efficiency ratio (GAAP)	C	$	45,347		$	43,311		$	41,421

Total noninterest expense (GAAP)	D	$	26,329		$	28,165		$	24,903
Less: Other real estate expense, net	E		28			476			74
Expense used for efficiency ratio (Non-GAAP)	F	$	26,301		$	27,689		$	24,829

Efficiency Ratio (GAAP)	D/C		58.06	%		65.03	%		59.94	%
Adjusted Efficiency Ratio (Non-GAAP)	F/C		58.00	%		63.93	%		59.94	%

Subsidiary:		Trustco Bank

Contact:		Robert Leonard
		Executive Vice President
		(518) 381-3693

The MIL Network –

April 22, 2025

MIL-OSI: NorthEast Community Bancorp, Inc. Reports Results for the Three Months Ended March 31, 2025

Source: GlobeNewswire (MIL-OSI)

WHITE PLAINS, N.Y., April 21, 2025 (GLOBE NEWSWIRE) — NorthEast Community Bancorp, Inc. (Nasdaq: NECB) (the “Company”), the parent holding company of NorthEast Community Bank (the “Bank”), generated net income of $10.6 million, or $0.80 per basic share and $0.78 per diluted share, for the three months ended March 31, 2025 compared to net income of $11.4 million, or $0.87 per basic share and $0.86 per diluted share, for the three months ended March 31, 2024.

Kenneth A. Martinek, Chairman of the Board and Chief Executive Officer, stated, “We are, once again, pleased to report another quarter of strong earnings due to the excellent performance of our loan portfolio. Despite the challenging economic operating environment thus far in 2025, loan demand is strong with originations and outstanding commitments robust and increasing. As in the past, construction lending in high demand-high absorption areas continues to be our focus.”

Highlights for the three months ended March 31, 2025 are as follows:

Performance metrics continue to be strong at March 31, 2025, with a return on average total assets ratio of 2.12%, a return on average shareholders’ equity ratio of 12.98%, and an efficiency ratio of 41.64%.
Asset quality metrics continued to remain strong with no non-performing loans at either March 31, 2025 or December 31, 2024, and non-performing assets to total assets of 0.26% and 0.25% at March 31, 2025 and at December 31, 2024, respectively. Our allowance for credit losses related to loans totaled $5.1 million, or 0.30% of total loans at March 31, 2025 compared to $4.9 million, or 0.27% of total loans at December 31, 2024.
We increased total stockholders’ equity by $8.9 million, or 2.8%, to $327.2 million, or 16.92% of total assets as of March 31, 2025 from $318.3 million, or 15.84% of total assets as of December 31, 2024.

Balance Sheet Summary

Total assets decreased $76.2 million, or 3.8%, to $1.9 billion at March 31, 2025, from $2.0 billion at December 31, 2024. The decrease in assets was primarily due to decreases in net loans of $87.3 million and decreases of $1.0 million in accrued interest receivable, partially offset by increases in cash and cash equivalents of $11.2 million and increases of $1.3 million in equity securities.

Cash and cash equivalents increased $11.2 million, or 14.3%, to $89.5 million at March 31, 2025 from $78.3 million at December 31, 2024. The increase in cash and cash equivalents was a result of a decrease of $87.3 million in net loans and an increase of $8.9 million in stockholders’ equity, partially offset by a decrease in deposits of $84.4 million.

Equity securities increased $1.3 million, or 5.9%, to $23.3 million at March 31, 2025 from $22.0 million at December 31, 2024. The increase in equity securities was attributable to the purchase of $1.0 million in equity securities during the three months ended March 31, 2025 and market appreciation of $300,000 due to market interest rate volatility during the quarter ended March 31, 2025.

Securities held-to-maturity decreased $129,000, or 0.9%, to $14.5 million at March 31, 2025 from $14.6 million at December 31, 2024 due to $129,000 in maturities and pay-downs of various investment securities.

Loans, net of the allowance for credit losses, decreased $87.3 million, or 4.8%, to $1.7 billion at March 31, 2025 from $1.8 billion at December 31, 2024. The decrease in loans consisted of decreases of $138.9 million in construction loans, $248,000 in non-residential loans, and $36,000 in one-to-four family loans. The decrease in our construction loan portfolio was due to normal pay-downs and principal reductions as construction projects were completed and either condominium units were sold to end buyers or multi-family rental buildings were refinanced by other financial institutions. The decrease in construction loans was offset by increases of $46.4 million in multi-family loans, $4.4 million in commercial and industrial loans, and $1.5 million in consumer loans.

During the quarter ended March 31, 2025, we originated loans totaling $170.1 million consisting primarily of $110.2 million in construction loans, $49.1 million in multi-family loans, $10.1 million in commercial and industrial loans, and $730,000 in mixed-use loans. The $110.2 million in construction loans had 38.4% disbursed at loan closing, with the remaining funds to be disbursed over the terms of the construction loans.

The allowance for credit losses related to loans increased to $5.1 million as of March 31, 2025, from $4.8 million as of December 31, 2024. The increase in the allowance for credit losses related to loans was due to recoveries totaling $352,000 and provision for credit losses totaling $62,000, offset by charge-offs totaling $117,000.

Premises and equipment increased $84,000, or 0.3%, to $24.9 million at March 31, 2025 from $24.8 million at December 31, 2024 primarily due to the purchases of additional fixed assets.

Federal Home Loan Bank stock was $397,000, foreclosed real estate was $5.1 million, and property held for investment was $1.4 million at both March 31, 2025 and December 31, 2024.

Bank owned life insurance (“BOLI”) increased $167,000, or 0.6%, to $25.9 million at March 31, 2025 from $25.7 million at December 31, 2024 due to increases in the BOLI cash value.

Accrued interest receivable decreased $1.0 million, or 7.9%, to $12.4 million at March 31, 2025 from $13.5 million at December 31, 2024 due to a decrease in the loan portfolio.

Right of use assets — operating decreased $145,000, or 3.6%, to $3.9 million at March 31, 2025 from $4.0 million at December 31, 2024, primarily due to amortization.

Other assets decreased $328,000, or 2.8%, to $11.3 million at March 31, 2025 from $11.6 million at December 31, 2024 due to decreases of $1.7 million in tax assets and $10,000 in miscellaneous assets, partially offset by increases of $1.1 million in suspense accounts and $263,000 in prepaid expenses.

Total deposits decreased $84.4 million, or 5.1%, to $1.6 billion at March 31, 2025 from $1.7 billion at December 31, 2024. The decrease in deposits was primarily due to decreases in certificates of deposit of $125.1 million, or 12.5%, and non-interest bearing deposits of $9.9 million, or 3.5%, partially offset by increases in NOW/money market accounts of $45.9 million, or 18.8%, and savings account balances of $3.3 million, or 2.4%. The decrease of $125.1 million in certificates of deposit consisted of a decrease in retail certificates of deposit of $76.0 million, or 14.8%, and a decrease in brokered certificates of deposit of $54.8 million, or 12.6%, partially offset by an increase in non-brokered listing services certificates of deposit of $5.7 million, or 17.0%.

The decrease in retail certificates of deposit was due to a shift in deposits to our retail high yield money market accounts. The decrease in brokered certificates of deposit was due to management’s strategy to reduce the cost of funds by “calling” higher rate brokered deposits on their call dates.

Advance payments by borrowers for taxes and insurance increased $680,000, or 42.0%, to $2.3 million at March 31, 2025 from $1.6 million at December 31, 2024 due primarily to accumulation of real estate tax payments from borrowers.

Lease liability – operating decreased $136,000, or 3.3%, to $4.0 million at March 31, 2025 from $4.1 million at December 31, 2024, primarily due to amortization.

Accounts payable and accrued expenses decreased $1.3 million, or 8.7%, to $13.3 million at March 31, 2025 from $14.5 million at December 31, 2024 due primarily to a decrease in accrued expense of $2.8 million, partially offset by increases in dividends payable and other payables of $806,000, suspense accounts for loan closings of $346,000, and deferred compensation of $167,000. The allowance for credit losses for off-balance sheet commitments increased $175,000, or 24.8%, to $879,000 at March 31, 2025 from $704,000 at December 31, 2024 due primarily to an increase of $101.4 million, or 18.0%, in off-balance sheet commitments.

Stockholders’ equity increased $8.9 million, or 2.8% to $327.2 million at March 31, 2025, from $318.3 million at December 31, 2024. The increase in stockholders’ equity was due to net income of $10.6 million for the quarter ended March 31, 2025, an increase of $302,000 in earned employee stock ownership plan shares coupled with a reduction of $217,000 in unearned employee stock ownership plan shares, and the amortization expense of $478,000 relating to restricted stock and stock options granted under the Company’s 2022 Equity Incentive Plan, partially offset by dividends declared of $2.7 million and $13,000 in other comprehensive loss.

Results of Operations for the Three Months Ended March 31, 2025 and 2024

Net Interest Income

Net interest income was $24.3 million for the three months ended March 31, 2025, as compared to $25.0 million for the three months ended March 31, 2024. The decrease in net interest income of $722,000, or 2.9%, was primarily due to an increase in interest expense that exceeded an increase in interest income and a decrease in the yield on interest earning assets that exceeded a decrease in the cost of funds for interest bearing liabilities.

Total interest and dividend income increased $86,000, or 0.2%, to $38.2 million for the three months ended March 31, 2025 from $38.1 million for the three months ended March 31, 2024. The increase in interest and dividend income was due to an increase in the average balance of interest earning assets of $159.9 million, or 9.2%, to $1.9 billion for the three months ended March 31, 2025 from $1.7 billion for the three months ended March 31, 2024, partially offset by a decrease in the yield on interest earning assets by 72 basis points from 8.77% for the three months ended March 31, 2024 to 8.05% for the three months ended March 31, 2025.

Interest expense increased $808,000, or 6.2%, to $13.9 million for the three months ended March 31, 2025 from $13.1 million for the three months ended March 31, 2024. The increase in interest expense was due to an increase in average interest bearing liabilities of $149.7 million, or 12.2%, to $1.4 billion for the three months ended March 31, 2025 from $1.2 billion for the three months ended March 31, 2024, partially offset by a decrease in the cost of interest bearing liabilities by 24 basis points from 4.29% for the three months ended March 31, 2024 to 4.05% for the three months ended March 31, 2025.

Our net interest margin decreased 64 basis points, or 11.1%, to 5.11% for the three months ended March 31, 2025 compared to 5.75% for the three months ended March 31, 2024. The decrease in the net interest margin was due to a decrease in the yield on interest-earning assets that exceeded a decrease in the cost of funds on interest-bearing liabilities.

Credit Loss Expense

The Company recorded a credit loss expense of $237,000 for the three months ended March 31, 2025 compared to a credit loss expense reduction of $165,000 for the three months ended March 31, 2024. The credit loss expense of $237,000 for the three months ended March 31, 2025 was comprised of credit loss expense for loans of $62,000 and credit loss expense for off-balance sheet commitments of $175,000.

The credit loss expense for loans of $62,000 for the three months ended March 31, 2025 was primarily due to an increase in the multi-family loan portfolio. The credit loss expense for off-balance sheet commitments of $175,000 for the three months ended March 31, 2025 was primarily due to an increase in unfunded off-balance sheet commitments.

The credit loss expense reduction of $165,000 for the three months ended March 31, 2024 was comprised of a credit loss expense reduction for loans of $145,000, a credit loss expense reduction for held-to-maturity investment securities of $3,000, and a credit loss expense reduction for off-balance sheet commitments of $17,000. The credit loss expense reduction for loans of $145,000 for the three months ended March 31, 2024 was primarily attributed to favorable trend in the economy.

With respect to the allowance for credit losses for loans, we charged-off $117,000 during the three months ended March 31, 2025 as compared to charge-offs of $21,000 during the three months ended March 31, 2024. The charge-offs during both periods were against various unpaid overdrafts in our demand deposit accounts.

We recorded recoveries of $352,000 during the three months ended March 31, 2025 compared to no recoveries during the three months ended March 31, 2024. The recoveries of $352,000 during the three months ended March 31, 2025 comprised of recoveries of $350,000 regarding a previously charged-off non-residential mortgage loan and $2,000 from a previously charged-off unpaid overdraft on a demand deposit account.

Non-Interest Income

Non-interest income for the three months ended March 31, 2025 was $1.2 million compared to non-interest income of $554,000 for the three months ended March 31, 2024. The increase of $681,000, or 122.9%, in total non-interest income was primarily due to increases of $382,000 in unrealized gain/(loss) on equity securities, $278,000 in other loan fees and service charges, $11,000 in miscellaneous other non-interest income, and $10,000 in BOLI income.

The increase in unrealized gain/(loss) on equity securities was due to an unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 compared to an unrealized loss of $82,000 on equity securities during the three months ended March 31, 2024. The unrealized gain of $300,000 on equity securities during the three months ended March 31, 2025 was due to market interest rate volatility during the three months ended March 31, 2025.

The increase of $278,000 in other loan fees and service charges was due to an increase of $245,000 in other loan fees and loan servicing fees, an increase of $31,000 in ATM/debit card/ACH fees, and an increase of $2,000 in deposit account fees.

The increase in BOLI income of $10,000 was due to an increase in the yield on BOLI assets.

Non-Interest Expense

Non-interest expense increased $938,000, or 9.7%, to $10.6 million for the three months ended March 31, 2025 from $9.7 million for the three months ended March 31, 2024. The increase resulted primarily from increases of $582,000 in salaries and employee benefits, $221,000 in other operating expense, $98,000 in outside data processing expense, $40,000 in occupancy expense, $19,000 in real estate owned expense, and $14,000 in advertising expense, partially offset by a decrease of $36,000 in equipment expense.

Income Taxes

We recorded income tax expense of $4.1 million and $4.7 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, we had approximately $204,000 in tax exempt income, compared to approximately $195,000 in tax exempt income for the three months ended March 31, 2024. Our effective income tax rates were 27.8% for the three months ended March 31, 2025 compared to 29.0% for the three months ended March 31, 2024.

Asset Quality

Non-performing assets were $5.1 million at March 31, 2025 and December 31, 2024, respectively. These non-performing assets consisted of two foreclosed properties, with one foreclosed property totaling $4.4 million located in the Bronx, New York and one foreclosed property totaling $767,000 located in Pittsburgh, Pennsylvania.

Our ratio of non-performing assets to total assets remained low at 0.26% at March 31, 2025 as compared to 0.25% at December 31, 2024.

The Company’s allowance for credit losses related to loans was $5.1 million, or 0.30% of total loans as of March 31, 2025, compared to $4.8 million, or 0.27% of total loans as of December 31, 2024. Based on a review of the loans that were in the loan portfolio at March 31, 2025, management believes that the allowance for credit losses related to loans is maintained at a level that represents its best estimate of inherent losses in the loan portfolio that were both probable and reasonably estimable.

In addition, at March 31, 2025, the Company’s allowance for credit losses related to off-balance sheet commitments totaled $879,000 and the allowance for credit losses related to held-to-maturity debt securities totaled $126,000.

Capital

The Company’s total stockholders’ equity to assets ratio was 16.92% as of March 31, 2025. At March 31, 2025, the Company had the ability to borrow $941.3 million from the Federal Reserve Bank of New York, $15.5 million from the Federal Home Loan Bank of New York, and $8.0 million from Atlantic Community Bankers Bank.

The Bank’s capital position remains strong relative to current regulatory requirements and the Bank is considered a well-capitalized institution under the Prompt Corrective Action framework. As of March 31, 2025, the Bank had a tier 1 leverage capital ratio of 15.09% and a total risk-based capital ratio of 15.10%.

The Company completed its first stock repurchase program on April 14, 2023 whereby the Company repurchased 1,637,794 shares, or 10%, of the Company’s issued and outstanding common stock. The cost of the stock repurchase program totaled $23.0 million, including commission costs and Federal excise taxes. Of the total shares repurchased under this program, 957,275 of such shares were repurchased during 2023 at a total cost of $13.7 million, including commission costs and Federal excise taxes.

The Company commenced its second stock repurchase program on May 30, 2023 whereby the Company will repurchase 1,509,218, or 10%, of the Company’s issued and outstanding common stock. As of March 31, 2025, the Company had repurchased 1,091,174 shares of common stock under its second repurchase program, at a cost of $17.2 million, including commission costs and Federal excise taxes.

About NorthEast Community Bancorp

NorthEast Community Bancorp, headquartered at 325 Hamilton Avenue, White Plains, New York 10601, is the holding company for NorthEast Community Bank, which conducts business through its eleven branch offices located in Bronx, New York, Orange, Rockland, and Sullivan Counties in New York and Essex, Middlesex, and Norfolk Counties in Massachusetts and three loan production offices located in New City, New York, White Plains, New York, and Danvers, Massachusetts. For more information about NorthEast Community Bancorp and NorthEast Community Bank, please visit www.necb.com.

Forward Looking Statement

This press release contains certain forward-looking statements. Forward-looking statements include statements regarding anticipated future events and can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause actual results to differ materially from expected results include, but are not limited to, changes in market interest rates, regional and national economic conditions (including higher inflation or recessionary conditions and their impact on regional and national economic conditions), legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the United States Treasury and the Federal Reserve Board, the impacts of tariffs, sanctions and other trade policies of the United States and its global trading counterparts, the quality and composition of the loan or investment portfolios, demand for loan products, decreases in deposit levels necessitating increased borrowing to fund loans and securities, competition, demand for financial services in NorthEast Community Bank’s market area, changes in the real estate market values in NorthEast Community Bank’s market area, the impact of failures or disruptions in or breaches of the Company’s operational or security systems, data or infrastructure, or those of third parties, including as a result of cyberattacks or campaigns, and changes in relevant accounting principles and guidelines. Additionally, other risks and uncertainties may be described in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission (the “SEC”), which are available through the SEC’s website located at www.sec.gov. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence of anticipated or unanticipated events.

CONTACT:		Kenneth A. Martinek
		Chairman and Chief Executive Officer

PHONE:		(914) 684-2500


NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited)

	March 31,			December 31,
	2025			2024
	(In thousands, except share
	and per share amounts)
ASSETS
Cash and amounts due from depository institutions	$	11,524		$	13,700
Interest-bearing deposits		77,934			64,559
Total cash and cash equivalents		89,458			78,259
Certificates of deposit		100			100
Equity securities		23,294			21,994
Securities held-to-maturity ( net of allowance for credit losses of $126 and $126, respectively )		14,487			14,616
Loans receivable		1,725,664			1,812,647
Deferred loan fees, net		(63	)		(49	)
Allowance for credit losses		(5,127	)		(4,830	)
Net loans		1,720,474			1,807,768
Premises and equipment, net		24,889			24,805
Investments in restricted stock, at cost		397			397
Bank owned life insurance		25,905			25,738
Accrued interest receivable		12,432			13,481
Real estate owned		5,120			5,120
Property held for investment		1,361			1,370
Right of Use Assets – Operating		3,856			4,001
Right of Use Assets – Financing		346			347
Other assets		11,257			11,585
Total assets	$	1,933,376		$	2,009,581
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Deposits:
Non-interest bearing	$	278,694		$	287,135
Interest bearing		1,307,321			1,383,240
Total deposits		1,586,015			1,670,375
Advance payments by borrowers for taxes and insurance		2,298			1,618
Lease Liability – Operating		3,972			4,108
Lease Liability – Financing		619			609
Accounts payable and accrued expenses		13,262			14,530
Total liabilities		1,606,166			1,691,240

Stockholders’ equity:
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding	$	—		$	—
Common stock, $0.01 par value; 75,000,000 shares authorized; 14,023,376 shares and 14,016,254 shares outstanding, respectively		140			140
Additional paid-in capital		110,871			110,091
Unearned Employee Stock Ownership Plan (“ESOP”) shares		(5,870	)		(6,088	)
Retained earnings		221,858			213,974
Accumulated other comprehensive gain		211			224
Total stockholders’ equity		327,210			318,341
Total liabilities and stockholders’ equity	$	1,933,376		$	2,009,581


NORTHEAST COMMUNITY BANCORP, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Quarter Ended March 31,
	2025		2024
	(In thousands, except per share amounts)
INTEREST INCOME:
Loans	$	36,882	$	36,703
Interest-earning deposits		1,081		1,200
Securities		244		218
Total Interest Income		38,207		38,121
INTEREST EXPENSE:
Deposits		13,933		12,394
Borrowings		–		731
Financing lease		10		10
Total Interest Expense		13,943		13,135
Net Interest Income		24,264		24,986
Provision for (reversal of) credit loss		237		(165	)
Net Interest Income after Provision for (Reversal of) Credit Loss		24,027		25,151
NON-INTEREST INCOME:
Other loan fees and service charges		740		462
Earnings on bank owned life insurance		167		157
Unrealized gain (loss) on equity securities		300		(82	)
Other		28		17
Total Non-Interest Income		1,235		554
NON-INTEREST EXPENSES:
Salaries and employee benefits		5,933		5,351
Occupancy expense		747		707
Equipment		217		253
Outside data processing		735		637
Advertising		102		88
Real estate owned expense		30		11
Other		2,855		2,634
Total Non-Interest Expenses		10,619		9,681
INCOME BEFORE PROVISION FOR INCOME TAXES		14,643		16,024
PROVISION FOR INCOME TAXES		4,076		4,650
NET INCOME	$	10,567	$	11,374


NORTHEAST COMMUNITY BANCORP, INC. SELECTED CONSOLIDATED FINANCIAL DATA (Unaudited)

	Quarter Ended March 31,
	2025			2024
	(In thousands, except per share amounts)
Per share data:
Earnings per share – basic	$	0.80		$	0.87
Earnings per share – diluted		0.78			0.86
Weighted average shares outstanding – basic		13,192			13,118
Weighted average shares outstanding – diluted		13,560			13,191
Performance ratios/data:
Return on average total assets		2.12	%		2.50	%
Return on average shareholders’ equity		12.98	%		15.88	%
Net interest income	$	24,264		$	24,986
Net interest margin		5.11	%		5.75	%
Efficiency ratio		41.64	%		37.91	%
Net charge-off ratio		(0.05	)%		0.00	%

Loan portfolio composition:		March 31, 2025			December 31, 2024
One-to-four family	$	3,436		$	3,472
Multi-family		253,018			206,606
Mixed-use		26,572			26,571
Total residential real estate		283,026			236,649
Non-residential real estate		29,198			29,446
Construction		1,287,225			1,426,167
Commercial and industrial		123,113			118,736
Consumer		3,102			1,649
Gross loans		1,725,664			1,812,647
Deferred loan fees, net		(63	)		(49	)
Total loans	$	1,725,601		$	1,812,598
Asset quality data:
Loans past due over 90 days and still accruing	$	–		$	–
Non-accrual loans		–			–
OREO property		5,120			5,120
Total non-performing assets	$	5,120		$	5,120

Allowance for credit losses to total loans		0.30	%		0.27	%
Allowance for credit losses to non-performing loans		0.00	%		0.00	%
Non-performing loans to total loans		0.00	%		0.00	%
Non-performing assets to total assets		0.26	%		0.25	%

Bank’s Regulatory Capital ratios:
Total capital to risk-weighted assets		15.10	%		13.92	%
Common equity tier 1 capital to risk-weighted assets		14.79	%		13.65	%
Tier 1 capital to risk-weighted assets		14.79	%		13.65	%
Tier 1 leverage ratio		15.09	%		14.44	%


NORTHEAST COMMUNITY BANCORP, INC. NET INTEREST MARGIN ANALYSIS (Unaudited)

	Quarter Ended March 31, 2025								Quarter Ended March 31, 2024
	Average Balance			Interest and dividend		Average Yield			Average Balance			Interest and dividend		Average Yield
	(In thousands, except yield/cost information)								(In thousands, except yield/cost information)
Loan receivable gross	$	1,767,849		$	36,882		8.35	%	$	1,612,343		$	36,703		9.11	%
Securities		36,751			235		2.56	%		33,848			197		2.33	%
Federal Home Loan Bank stock		397			9		9.07	%		842			21		9.98	%
Other interest-earning assets		93,476			1,081		4.63	%		91,552			1,200		5.24	%
Total interest-earning assets		1,898,473			38,207		8.05	%		1,738,585			38,121		8.77	%
Allowance for credit losses		(4,827	)							(5,091	)
Non-interest-earning assets		96,493								88,859
Total assets	$	1,990,139							$	1,822,353

Interest-bearing demand deposit	$	274,630		$	2,445		3.56	%	$	171,483		$	1,817		4.24	%
Savings and club accounts		138,903			730		2.10	%		182,771			1,202		2.63	%
Certificates of deposit		962,084			10,758		4.47	%		810,586			9,375		4.63	%
Total interest-bearing deposits		1,375,617			13,933		4.05	%		1,164,840			12,394		4.26	%
Borrowed money		–			10		0.00	%		61,092			741		4.85	%
Total interest-bearing liabilities		1,375,617			13,943		4.05	%		1,225,932			13,135		4.29	%
Non-interest-bearing demand deposit		270,874								291,909
Other non-interest-bearing liabilities		18,086								18,090
Total liabilities		1,664,577								1,535,931
Equity		325,562								286,422
Total liabilities and equity	$	1,990,139							$	1,822,353

Net interest income / interest spread				$	24,264		4.00	%				$	24,986		4.48	%
Net interest rate margin							5.11	%							5.75	%
Net interest earning assets	$	522,856							$	512,653
Average interest-earning assets
to interest-bearing liabilities		138.01	%							141.82	%

The MIL Network –

April 22, 2025

MIL-OSI USA: Up to $5 Million Reward Offered for Capture of Archaga Carías, a Top 10 Most Wanted Fugitive and Leader of Foreign Terrorist Organization MS-13

Source: US State of North Dakota

U.S. Foreign Terrorist Organization MS-13 leader Yulan Andony Archaga Carías, also known as “Alexander Mendoza” and “Porky,” 43, is the highest-ranking member of MS-13, a U.S.-designated Foreign Terrorist Organization (FTO), in Honduras and was previously charged in 2021 in a superseding indictment in the Southern District of New York with racketeering, narcotics trafficking, and firearms offenses. Archaga Carías, a Honduran national, was subsequently placed on the FBI’s 10 Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI)’s Most Wanted Fugitives List. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs is offering a reward under the Transnational Organized Crime Rewards Program (TOCRP) of up to $5 million for information leading to his arrest and/or conviction in any country.

“This terrorist leader can no longer be allowed to live free as MS-13’s evil devastates communities in America and throughout the western hemisphere,” said Attorney General Pamela Bondi. “If you can contribute information leading to his arrest – come forward now.”

Archaga Carías remains at large. If you have information, please contact the FBI by email at archaga-carias_tips@fbi.gov, or via WhatsApp at +1-832-267-1688. If you are outside the United States, you may also contact the nearest U.S. Embassy or Consulate. If you are in the United States, you may also contact the local FBI, DEA, or HSI office in your city. Only tips sent to U.S. Government will be considered for reward.

“Dismantling and ultimately eliminating MS-13 continues to be one of the FBI’s highest priorities, and we’re not stopping until that mission is complete,” said FBI Director Kash Patel. “Alongside our dedicated law enforcement partners, the FBI will find Archaga Carías — a terrorist whose reign of terror at the helm of MS-13 is coming to an end.”

“With MS-13 now officially designated as a Foreign Terrorist Organization, the rules have changed — and so has the mission,” said DEA Acting Administrator Derek Maltz. “Archaga Carías isn’t just a fugitive — he’s a foreign terrorist waging war on innocent Americans through murder, trafficking, and terror. Let me be clear: under this Administration, we will dismantle MS-13 piece by piece—and anyone protecting him will fall with him. A $5 million is on the table. Turn him in. End this threat.”

A co-defendant, David Campbell, aka “Viejo Dan” and “Don David,” a Honduran national, is currently in custody in the United States facing the charges contained in the superseding indictment. In addition to Archaga Carías and Campbell, the superseding indictment charges three other MS-13 leaders, Juan Carlos Portillo Santos also known as “Juancy;” Victor Eduardo Morales Zelaya also known as “Cuervo;” and Jorge Alberto Velasquez Paz also known as “Chacarron,” with racketeering, narcotics trafficking, and firearms offenses. Portillo Santos, a Honduran national, is in custody in Honduras serving a lengthy prison sentence. Morales Zelaya and Velasquez Paz, both Honduran nationals, remain at large. The case is assigned to U.S. District Court Judge Gregory H. Woods for the Southern District of New York.

“MS-13 remains one of the most dangerous criminal organizations in the world, and the recent designation of MS-13 as a Foreign Terrorist Organization underscores this reality,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York. “This Office, working closely with our law enforcement partners, will continue to investigate, prosecute and track down MS-13’s leadership, no matter where in the world they may be hiding.”

As alleged in the superseding indictment previously unsealed in Manhattan federal court, Mara Salvatrucha, commonly known as MS-13 is a transnational criminal and foreign terrorist organization that engages in acts of violence, including murders, kidnapping, and assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States. Archaga Carías is the highest-ranking member of MS-13 in Honduras. As the leader and highest-ranking member of MS-13 in Honduras, Archaga Carías is in charge of, among other things, the gang’s drug trafficking operations, ordering and coordinating acts of violence, including numerous murders, and the laundering of drug proceeds. MS-13’s drug trafficking operations led by Archaga Carías include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States.

“President Trump has been very clear — we will not allow criminal groups and their members like Porky to threaten Americans,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs. “We will work with our international partners to find these criminals wherever they may be hiding.”

Archaga Carías and other MS-13 members and associates acting at his direction also provided protection to drug trafficking organizations (DTOs) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States. Archaga Carías contracted out members of MS-13 as “Sicarios,” or hit men, to DTOs for payment. Members of MS-13 committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States. Archaga Carías and MS-13 also supplied DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere. Archaga Carías also ordered multiple murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 whom Archaga Carías believed had been disloyal to the gang.

Campbell was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13. As an associate of MS-13 and close confidant of Archaga Carías, Campbell planned and coordinated retaliatory acts of violence with Archaga Carías, and assisted MS-13 and Archaga Carías in establishing businesses to launder the gang’s drug proceeds. Campbell and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.

Morales Zelaya was a national leader of MS-13 in Honduras and a close associate of Archaga Carías. Morales Zelaya coordinated the gang’s drug trafficking business, acts of violence (including murders) against rivals, and the movement of proceeds from the gang’s illicit activities.

Portillo Santos was a high-ranking member of MS-13 in Honduras who reported to Morales Zelaya. Portillo Santos was responsible for leading MS-13 in one of the largest sectors in Honduras, which included the distribution and movement of large shipments of cocaine, acts of violence (including murders and kidnappings) of rival gang members, and contract murders carried out against rival drug dealers. Campbell, 58, of Honduras, is currently in Federal Bureau of Prisons (FBOP) custody facing the charges in the superseding indictment. Portillo Santos, 36, of Honduras, is currently in custody in Honduras on local charges. Archaga Carías, 43, and Morales Zelaya, 50, of Honduras, remains at large.

If convicted, Archaga Carías faces a maximum penalty of life in prison and a mandatory minimum penalty of 40 years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Joint Task Force Vulcan (JTFV) and the Southern District of New York’s National Security and International Narcotics Unit are handling the case. Assistant U.S. Attorney David J. Robles and Special Assistant U.S. Attorney Christopher Eason, and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are in charge of the prosecution.

This case was brought by JTFV, which was created in 2019 to destroy MS-13 and now expanded to target Tren de Aragua and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; HSI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the FBOP have been essential law enforcement partners and spearheaded JTFV’s investigations.

This case is part of Operation Take Back America and an Organized Crime Drug Enforcement Task Force (OCDETF) operation. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal aliens, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The charges contained in the superseding indictment are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

MIL OSI USA News –

April 22, 2025
MIL-OSI Security: Up to $5 Million Reward Offered for Capture of Archaga Carías, a Top 10 Most Wanted Fugitive and Leader of Foreign Terrorist Organization MS-13

Source: United States Attorneys General 13

U.S. Foreign Terrorist Organization MS-13 leader Yulan Andony Archaga Carías, also known as “Alexander Mendoza” and “Porky,” 43, is the highest-ranking member of MS-13, a U.S.-designated Foreign Terrorist Organization (FTO), in Honduras and was previously charged in 2021 in a superseding indictment in the Southern District of New York with racketeering, narcotics trafficking, and firearms offenses. Archaga Carías, a Honduran national, was subsequently placed on the FBI’s 10 Most Wanted Fugitives List, the DEA’s Most Wanted Fugitives List, and U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI)’s Most Wanted Fugitives List. The Department of State’s Bureau of International Narcotics and Law Enforcement Affairs is offering a reward under the Transnational Organized Crime Rewards Program (TOCRP) of up to $5 million for information leading to his arrest and/or conviction in any country.

“This terrorist leader can no longer be allowed to live free as MS-13’s evil devastates communities in America and throughout the western hemisphere,” said Attorney General Pamela Bondi. “If you can contribute information leading to his arrest – come forward now.”

Archaga Carías remains at large. If you have information, please contact the FBI by email at archaga-carias_tips@fbi.gov, or via WhatsApp at +1-832-267-1688. If you are outside the United States, you may also contact the nearest U.S. Embassy or Consulate. If you are in the United States, you may also contact the local FBI, DEA, or HSI office in your city. Only tips sent to U.S. Government will be considered for reward.

“Dismantling and ultimately eliminating MS-13 continues to be one of the FBI’s highest priorities, and we’re not stopping until that mission is complete,” said FBI Director Kash Patel. “Alongside our dedicated law enforcement partners, the FBI will find Archaga Carías — a terrorist whose reign of terror at the helm of MS-13 is coming to an end.”

“With MS-13 now officially designated as a Foreign Terrorist Organization, the rules have changed — and so has the mission,” said DEA Acting Administrator Derek Maltz. “Archaga Carías isn’t just a fugitive — he’s a foreign terrorist waging war on innocent Americans through murder, trafficking, and terror. Let me be clear: under this Administration, we will dismantle MS-13 piece by piece—and anyone protecting him will fall with him. A $5 million is on the table. Turn him in. End this threat.”

A co-defendant, David Campbell, aka “Viejo Dan” and “Don David,” a Honduran national, is currently in custody in the United States facing the charges contained in the superseding indictment. In addition to Archaga Carías and Campbell, the superseding indictment charges three other MS-13 leaders, Juan Carlos Portillo Santos also known as “Juancy;” Victor Eduardo Morales Zelaya also known as “Cuervo;” and Jorge Alberto Velasquez Paz also known as “Chacarron,” with racketeering, narcotics trafficking, and firearms offenses. Portillo Santos, a Honduran national, is in custody in Honduras serving a lengthy prison sentence. Morales Zelaya and Velasquez Paz, both Honduran nationals, remain at large. The case is assigned to U.S. District Court Judge Gregory H. Woods for the Southern District of New York.

“MS-13 remains one of the most dangerous criminal organizations in the world, and the recent designation of MS-13 as a Foreign Terrorist Organization underscores this reality,” said Acting U.S. Attorney Matthew Podolsky for the Southern District of New York. “This Office, working closely with our law enforcement partners, will continue to investigate, prosecute and track down MS-13’s leadership, no matter where in the world they may be hiding.”

As alleged in the superseding indictment previously unsealed in Manhattan federal court, Mara Salvatrucha, commonly known as MS-13 is a transnational criminal and foreign terrorist organization that engages in acts of violence, including murders, kidnapping, and assaults, extortion, and large-scale drug importation and distribution throughout Central America and the United States. Archaga Carías is the highest-ranking member of MS-13 in Honduras. As the leader and highest-ranking member of MS-13 in Honduras, Archaga Carías is in charge of, among other things, the gang’s drug trafficking operations, ordering and coordinating acts of violence, including numerous murders, and the laundering of drug proceeds. MS-13’s drug trafficking operations led by Archaga Carías include the processing, receiving, transporting, and distributing of multi-ton loads of cocaine shipped through Honduras and into the United States.

“President Trump has been very clear — we will not allow criminal groups and their members like Porky to threaten Americans,” said Senior Bureau Official F. Cartwright Weiland of the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs. “We will work with our international partners to find these criminals wherever they may be hiding.”

Archaga Carías and other MS-13 members and associates acting at his direction also provided protection to drug trafficking organizations (DTOs) engaged in transporting multi-ton loads of cocaine through Honduras and destined for the United States. Archaga Carías contracted out members of MS-13 as “Sicarios,” or hit men, to DTOs for payment. Members of MS-13 committed numerous murders for hire for DTOs trafficking cocaine through Honduras to the United States. Archaga Carías and MS-13 also supplied DTOs with firearms, including machineguns, that were received from El Salvador, Nicaragua, and elsewhere. Archaga Carías also ordered multiple murders of rival gang members and drug trafficking competitors in Honduras, as well as other members of MS-13 whom Archaga Carías believed had been disloyal to the gang.

Campbell was one of the principal suppliers of cocaine and weapons, including machineguns, to MS-13. As an associate of MS-13 and close confidant of Archaga Carías, Campbell planned and coordinated retaliatory acts of violence with Archaga Carías, and assisted MS-13 and Archaga Carías in establishing businesses to launder the gang’s drug proceeds. Campbell and MS-13 used businesses they owned or controlled to launder drug proceeds, including through banks in the United States.

Morales Zelaya was a national leader of MS-13 in Honduras and a close associate of Archaga Carías. Morales Zelaya coordinated the gang’s drug trafficking business, acts of violence (including murders) against rivals, and the movement of proceeds from the gang’s illicit activities.

Portillo Santos was a high-ranking member of MS-13 in Honduras who reported to Morales Zelaya. Portillo Santos was responsible for leading MS-13 in one of the largest sectors in Honduras, which included the distribution and movement of large shipments of cocaine, acts of violence (including murders and kidnappings) of rival gang members, and contract murders carried out against rival drug dealers. Campbell, 58, of Honduras, is currently in Federal Bureau of Prisons (FBOP) custody facing the charges in the superseding indictment. Portillo Santos, 36, of Honduras, is currently in custody in Honduras on local charges. Archaga Carías, 43, and Morales Zelaya, 50, of Honduras, remains at large.

If convicted, Archaga Carías faces a maximum penalty of life in prison and a mandatory minimum penalty of 40 years in prison. The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.

Joint Task Force Vulcan (JTFV) and the Southern District of New York’s National Security and International Narcotics Unit are handling the case. Assistant U.S. Attorney David J. Robles and Special Assistant U.S. Attorney Christopher Eason, and Trial Attorney Jacob Warren of the National Security Division’s Counterterrorism Section are in charge of the prosecution.

This case was brought by JTFV, which was created in 2019 to destroy MS-13 and now expanded to target Tren de Aragua and is comprised of U.S. Attorney’s Offices across the country, including the Southern District of New York; Eastern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Eastern District of Texas; the Southern District of Florida; the Eastern District of Virginia; the Southern District of California; the District of Nevada; the District of Alaska; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. Additionally, the FBI; DEA; HSI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the FBOP have been essential law enforcement partners and spearheaded JTFV’s investigations.

This case is part of Operation Take Back America and an Organized Crime Drug Enforcement Task Force (OCDETF) operation. Operation Take Back America is a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal aliens, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The charges contained in the superseding indictment are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Defendant Convicted of Five Armed Robberies and Attempted Robberies in Brooklyn, Staten Island, and New Jersey

Source: Office of United States Attorneys

A federal jury today convicted Tony Clanton, also known as “Tone,” on all counts of a superseding indictment charging him with Hobbs Act robbery conspiracy, two counts of Hobbs Act robbery, attempted Hobbs Act robbery, and use of firearms during crimes of violence. The charges arose from a string of robberies and attempted robberies committed at gunpoint by the defendant and co-conspirators. The verdict followed a six-day trial before United States District Judge Kiyo A. Matsumoto. When sentenced, Clanton faces a mandatory minimum term of 25 years in prison and up to life in prison.

John J. Durham, United States Attorney for the Eastern District of New York; Terence G. Reilly, Acting Special Agent in Charge, Federal Bureau of Investigation, Newark Field Office (FBI); and Jessica S. Tisch, Commissioner, New York City Police Department (NYPD), announced the verdict.

“Over a six-month period, Clanton directed a cruel and violent spree in New York City and New Jersey that left terrorized robbery victims in his wake, including two children who watched as their parents were shot at or menaced with guns,” stated United States Attorney Durham. “Thanks to exceptional investigative work by the FBI and the NYPD, the defendant was identified, apprehended, and rightly convicted today by jurors who were presented with a mountain of evidence that demonstrated his crime wave and overwhelmingly proved his guilt.”

Mr. Durham also thanked the Edison, New Jersey Police Department for their valuable assistance on the case.

“Tony Clanton is a serial violent criminal who has gone to great lengths to terrorize his victims in the pursuit of monetary gain. The FBI won’t rest until violent organized criminals are taken off the street so victims and others in the community may sleep soundly, and know justice has been served,” stated FBI Newark Acting Special Agent in Charge Reilly. “The FBI’s Safe Streets Task Forces spearhead countless cases similar to this one. But with each case, there are victims. All our efforts are for them.”

“Tony Clanton terrorized communities throughout New York City — holding victims at gunpoint in front of their children, firing recklessly, even impersonating a federal agent,” said NYPD Commissioner Jessica S. Tisch. “Thanks to the outstanding work of NYPD investigators, in partnership with the FBI and the U.S. Attorney’s Office, he’s now been brought to justice. This conviction ends a violent spree that had no place in our city. And we will continue working with our partners to make sure criminals like this are held accountable.”

As proven at trial, Clanton orchestrated a series of violent robberies at gunpoint in the Eastern District of New York and in New Jersey between January 2023 and July 2023. After he was indicted, Clanton removed his ankle monitor and fled the district two weeks before a previously scheduled trial date and went on the run for five weeks. While he was a fugitive, Clanton fled from two police officers who pulled him over, presented fake identification documents, and searched on the Internet for how to fake his own death.

January 20, 2023 Home Invasion in Staten Island

Clanton orchestrated an attempted robbery in which a co-conspirator, wearing a white hazmat suit, gloves, and standing in the vestibule of an apartment building with a can of paint, accosted Victim-1, who was entering the vestibule with his 10-year-old son. The co-conspirator pointed a silver revolver at Victim-1 and said, “Don’t make this a homicide,” struck Victim-1 in the head with the gun, and fired a shot. Clanton, who was also armed with a gun, grabbed Victim-1’s keys and tried unsuccessfully to open Victim-1’s apartment door. Clanton and his co-conspirator then fled in a U-Haul van.

June 3, 2023 Robbery of a Smoke Shop in Staten Island

Clanton orchestrated the robbery of an employee (Victim-2) of a smoke shop in Annadale, Staten Island as he was closing the store for the night. As his co-conspirators brandished firearms and robbed the smoke shop, Clanton monitored a police scanner radio and maintained cell phone contact with his accomplices to warn them that the police were on the way. They restrained Victim-2 with zip ties and pressed a gun to the back of his head. The robbers took approximately $4,000 in cash, packages of cigarettes, and a quantity of marijuana.

June 24, 2023 Attempted Robbery of a Car Buyer in Staten Island

Clanton orchestrated a robbery in which he pretended he was selling his Mercedes-Benz automobile to a prospective buyer (Victim-3). While Clanton waited in the area, two of Clanton’s co-conspirators tried to rob Victim-3. With Victim-3’s teenage son watching from the doorway, one of the co-conspirators attempted to rob Victim-3 at gunpoint. Victim-3 fled into his home and slammed the door shut before the co-conspirator could barge inside. That co-conspirator then fled the scene with Clanton as the get-away driver.

June 27, 2023 Attempted Robbery of the Owners of a Jewelry Store in New Jersey

Clanton and a co-conspirator attempted to rob the husband (Victim-4) and wife (Victim-5) owners of an Edison, New Jersey jewelry store outside their home. Clanton identified Victim-4 and Victim-5 as potential targets and conducted surveillance on them for over a week before the attempted robbery. During the attempted robbery, Clanton and his co-conspirator were wearing jackets with the letters “FBI,” badges that said “FBI,” and hats identifying themselves as law enforcement agents that Clanton had previously ordered from Amazon. When the victims pulled into their driveway, Clanton and his co-conspirator ordered them out of the car at gunpoint. Realizing Clanton and his co-conspirator were not FBI agents, the victims sped away and escaped unharmed.

July 12, 2023 Robbery of the Owner of an Ice Cream Store in Brooklyn

Clanton and a co-conspirator waited outside a TD Bank in Brooklyn for the victim (Victim-6) to leave with a bag of cash. They followed Victim-6 to his home where the co-conspirator took a bag containing over $6,000 at gunpoint.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Andrew M. Roddin and Matthew Skurnik are in charge of the prosecution with the assistance of Paralegal Specialist Timothy Migliaro.

The Defendant:

TONY CLANTON (also known as “Tone”)
Age: 51
Staten Island, New York

E.D.N.Y. Docket No. 23-CR-328 (S-1) (KAM)

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Jaremy Smith Sentenced to Life in Prison for New Mexico State Officer’s Murder

Source: Office of United States Attorneys

ALBUQUERQUE – Jaremy Smith has been sentenced to life in prison for a violent crime spree that culminated with the murder of Officer Justin Hare in New Mexico.

There is no parole in the federal system.

On March 15, 2024, Smith encountered NMSP Officer Justin Hare in Tucumcari, New Mexico, when Officer Hare stopped to assist Smith with a flat tire on the BMW. When Officer Hare pulled over behind the BMW, Smith exited the driver’s side of his car and approached the passenger window of Officer Hare’s patrol car. After a short discussion, Officer Hare asked Smith to walk to the front of the patrol vehicle. Instead, Smith shot Officer Hare, who slumped to the right in the driver’s seat. Smith then moved to the driver’s side of the patrol vehicle and shot Officer Hare two additional times before entering the driver’s seat and driving away with Hare still inside the vehicle.

Screenshot of Exhibit 1 (00:01:02) depicting Smith walking to driver’s side window of the patrol vehicle

At some point, the vehicle’s distress system was activated. Smith drove westbound on I-40 before exiting on a frontage road and removing Officer Hare from the vehicle, leaving him on the side of the road, and drove away. Smith drove the patrol vehicle for another 10 minutes, eventually crashing the patrol unit into shrubbery along the north frontage road of Interstate 40 in Guadalupe County, New Mexico.

When Officer Hare did not respond to the dispatcher’s check for an update, a second officer was sent to the scene. While en route, the second officer received the distress signal from Officer Hare’s handheld radio. The officer then spotted Officer Hare’s patrol unit driving in the opposite direction at high speed along the frontage road. The second officer attempted to catch up with Officer Hare’s unit, but before he could, Smith crashed the patrol vehicle. Upon approaching the crashed vehicle, the officer found it empty, with no sign of Smith or Officer Hare. The officer then began a search of the area and found Officer Hare, still alive. Officer Hare was rushed to Trigg Memorial Hospital in Tucumcari, where he was pronounced dead at 7:21 a.m.

After crashing the stolen patrol car, Smith fled on foot, stole a flatbed truck in Cuervo, and drove to Albuquerque. Smith was heading to Albuquerque because he had a former girlfriend who lived there.

Smith’s capture came on March 17, 2024, when a gas station clerk in Albuquerque recognized the unusual spelling of his name from police advisory messages when he presented identification to make a purchase, and the clerk contacted law enforcement. Bernalillo County Sheriff’s Deputies quickly arrived, and Smith attempted to ambush them before fleeing through a residential neighborhood. During the chase, Smith discarded the firearm used to kill Officer Hare, which was later recovered. Law enforcement also found the stolen flatbed truck, with ammunition inside, and further linked Smith to the crime spree.

“Jaremy Smith’s violent crime spree left a trail of destruction across state lines, endangering the lives of both the public and first responders,” said U.S. Attorney Ryan Ellsion. “Today’s sentence serves as a powerful reminder that violence against those who serve and protect the public will not be tolerated. Officer Justin Hare, a hero who saw someone in need and selflessly stepped in to help, paid the ultimate price. We honor his memory by ensuring that Jaremy Smith will never again be able to endanger the lives of others. Our focus remains on securing justice for victims and holding violent criminals fully accountable for their actions.”

“Every day, first responders answer the call to protect others- often at great personal risk. The loss of Officer Hare is a heartbreaking reminder of that reality,” said Raul Bujanda Special Agent in Charge of the FBI Albuquerque Field Office. “While this sentence does not undo the pain inflicted upon our community, we hope it brings a sense of resolution to his family. We will continue to work with our partners to pursue violent offenders with every tool at our disposal.”

“Jaremy Smith, in a cruel and calculated act of evil, ambushed Officer Justin Hare, executing him and leaving him to die alone in the cold after stealing his patrol vehicle,” said Chief Troy Weisler of the New Mexico State Police. “Thanks to the courage of community members and the tireless efforts of our local and federal partners, Smith was swiftly apprehended and brought to justice. With today’s sentencing, the court has sent a clear and unwavering message: anyone who harms those who protect and serve will face the full and unrelenting weight of justice. While no sentence can bring Justin back, our officers will rest easier knowing that Jeremy Smith will never again walk free and will spend the rest of his life exactly where he belongs.”

On January 17, 2025, Smith pled guilty to carjacking resulting in death, using and carrying a firearm during a crime of violence, kidnapping resulting in death, being a prohibited person in possession of a firearm, and possession of a stolen firearm.

U.S. Attorney Ryan Ellison and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The FBI Albuquerque Field Office and New Mexico State Police investigated this case with assistance from the Tenth Judicial District Attorney’s Office and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Jack Burkhead prosecuted the case.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Hagerstown Man Pleads Guilty to Federal Swatting Charges

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

Baltimore, Maryland – Owen Jarboe, 19, of Hagerstown, Maryland, has pled guilty to conspiracy, cyberstalking, interstate threatening communications, and threats to damage or destroy by means of fire and explosives.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) – Baltimore Field Office.

According to the guilty plea, from December 2023 through January 18, 2024, Jarboe along with other co-conspirators, knowingly and unlawfully conspired to place swatting calls to multiple police and emergency departments across the United States. Swatting is a form of criminal harassment that involves deceiving an emergency service into sending a police or emergency service response team to another person’s location.

Jarboe helped create an online group known as “Purgatory.” The group used multiple online social-media platforms, including Telegram and Instagram, to coordinate and plan swatting activities and to announce swats that they had conducted. Jarboe and his co-conspirators often used shared scripts to obscure their phone numbers and identities.

Swatting incidents perpetrated as part of this scheme include threatening to burn down a residential trailer park in Alabama and shoot a teacher and unnamed students at a Delaware high school. Other swatting occurrences include false allegations about multiple homicide events and shooting threats of individuals at a residence in Eastman, Georgia, and bombing and shooting threats of Albany International Airport in New York and an Ohio casino.

“Swatting is a very serious offense – one that can easily become dangerous for law enforcement and the victims involved,” Hayes said. “Emergency personnel work hard every day to ensure that first responders are dispatched to render aid to those who truly need it. Mr. Jarboe and his co-conspirators’ actions showed a complete disregard for law enforcement, the victims, and those who actually needed emergency assistance during these incidents.”

“Jarboe’s crimes are despicable and dangerous. He put our brave first responders and countless innocent lives at risk while creating unnecessary fear in many different communities,” DelBagno said. “Jarboe’s guilty plea shows that the FBI will not tolerate swatting or hoax threats and will make sure anyone committing these crimes is found and charged to the full extent of the law.”

Jarboe is facing a maximum sentence of five years in federal prison for each count of conspiracy, cyberstalking, and interstate threat, and a maximum sentence of 10 years for each charge to damage or destroy by means of fire and explosive.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after taking into account the U.S. Sentencing Guidelines and other statutory factors. Sentencing is set for Wednesday, July 23, at 10 a.m.

U.S. Attorney Hayes commended the FBI for its outstanding work in the investigation. Additionally, Ms. Hayes praised the Joint Terrorism Task Force, Columbus; Ohio Police Department; Newark, Delaware Police Department; Lenoir City, Tennessee Police Department; Albany, New York Police Department; Albany County, New York Sheriff’s Office; Fairburn City, Georgia Police Department; Bethel Park, Pennsylvania Police Department; Giles County, Virginia Sheriff’s Office; Blue Springs, Missouri Police Department; Tarboro, North Carolina Police Department; Boston, Massachusetts Police Department; Dodge County, Georgia Sheriff’s Office; Houston County, Alabama Sheriff’s Office; and the FBI’s Mobile, Richmond, Boston, Charlotte, and Cincinnati Field Offices for their valuable assistance. Ms. Hayes also thanked Assistant U.S. Attorneys Robert I. Goldaris and Patricia C. McLane who are prosecuting the case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Fentanyl Trafficker Sentenced to Five Years in Federal Prison

Source: Office of United States Attorneys

PROVIDENCE – A Pawtucket man convicted of providing fentanyl to a member of a drug trafficking conspiracy has been sentenced to five years in federal prison, announced Acting United States Attorney Sara Miron Bloom.

Calvin Tavarez, 30, previously admitted to a federal judge that on at least two occasions he supplied fentanyl to a member of the conspiracy.

Tavarez pleaded guilty on January 29, 2025, to a charge of conspiracy to distribute and possess with intent to distribute fentanyl. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 60 months of incarceration to be followed by four years of federal supervised release.

The case was prosecuted by Assistant United States Attorneys Peter I. Roklan and Stacey A. Erickson.

The matter was investigated by the Rhode Island FBI Safe Streets Task Force. The Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, the U.S. Marshals Service, and the Rhode Island Department of Corrections.

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MIL Security OSI –

April 22, 2025

MIL-OSI: VNBTC – Revolutionizing Cloud Mining with Profitable Plans and an Innovative Affiliate Program

Source: GlobeNewswire (MIL-OSI)

London, United Kingdom, April 21, 2025 (GLOBE NEWSWIRE) — Cryptocurrencies continue to shape financial futures, and VNBTC is leading the charge with its advanced, user-friendly, and profitable cloud mining platform. Offering high-performing mining packages and a dynamic affiliate program, VNBTC is creating boundless earning opportunities for newcomers and seasoned investors alike.

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The MIL Network –

April 22, 2025

MIL-OSI Security: Georgia Man Charged With Sending Threatening Letter to Spiritual Mission in Suburban Chicago

Source: Office of United States Attorneys

CHICAGO — A Georgia man has been charged with sending a threatening letter to a spiritual mission in suburban Chicago.

A criminal complaint filed in U.S. District Court in Chicago charges JIMIL PARMAR, 33, of Lawrenceville, Ga., with one count of mailing a threatening communication. Parmar was arrested last week in the Northern District of Georgia. A preliminary hearing is scheduled for May 2, 2025, in U.S. District Court in Atlanta.

According to the complaint, Parmar mailed a letter in July 2023 to the Sant Nirankari Mission in West Chicago, Ill. The letter stated, “CANCEL US CANADA TOUR IMMEDIATELY SRS ATTACK PLANNED,” the complaint states. The threat coincided with a visit by the Mission’s spiritual leader, Satguru Mata Sudiksha Ji Maharaj, who was touring the United States and Canada that summer and had appearances scheduled in the Chicago and Atlanta areas.

At least four other Sant Nirankari Missions in the United States that month received what appeared to be identical letters, the complaint states. The federal investigation is being led by the FBI and remains active.

The complaint and arrest were announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Atlanta Field Office of the FBI. The government is represented by Assistant U.S. Attorney Kavitha J. Babu.

“When a threat of mass violence occurs, our Office will find, arrest, and prosecute those responsible to the fullest extent of the law,” said U.S. Attorney Boutros. “This case demonstrates our Office’s commitment to hold accountable those who seek to intimidate and instill fear in members of our community.”

“The subject’s alleged actions serve as a disturbing reminder of the hatred that many marginalized people encounter simply because of their beliefs,” said FBI SAC DePodesta. “We extend our appreciation to the FBI Atlanta Field Office and all of our dedicated law enforcement partners who work tirelessly to apprehend those who dare to threaten the safety of our communities.”

The charge in the complaint is punishable by up to five years in federal prison. The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Walgreens Agrees To Pay Up to $350M for Illegally Filling Unlawful Opioid Prescriptions and Submitting False Claims

Source: Office of United States Attorneys

WASHINGTON — The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.

The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.

The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.

In light of the settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”

“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”

“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”

“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”

“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”

“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”

“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”

In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.

“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation’s largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”

“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”

“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”

The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.

The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).

The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisianaprovided substantial assistance in the investigation.

The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.

The claims asserted against defendants are allegations only and there has been no determination of liability.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Yakama Man Sentenced to 72 Months in Prison for Sexual Abuse in Indian Country of an Incapacitated Teenager

Source: Office of United States Attorneys

Yakima, Washington – Acting U.S. Attorney Richard R. Barker announced that on April 14, 2025, United States District Judge Mary K. Dimke sentenced Darius Morningstar Speedis, age 20, of the Confederated Tribes and Bands of the Yakama Nation, to 72 months in federal prison for Sexual Abuse in Indian Country. Judge Dimke also imposed 10 years of supervised release and required Speedis to register as a sex offender.

According to court documents and information presented at the sentencing hearing, in early November 2022, Speedis sexually assaulted a 16-year-old Native American woman who had become intoxicated and incapacitated. The assault occurred after several teenagers, including the victim and Speedis, consumed alcohol – at least some of which was provided by Speedis. The sexual assault occurred on the Yakama Nation.

Although the victim had no independent recollection of the sexual assault, Speedis had recorded the assault and then sent a video to the victim. That video, however, later was deleted and was not recovered by law enforcement.

At sentencing, Judge Dimke took into account the abuse of trust involved in the sexual assault, including the recording of the sexual assault, as well as Speedis’ age and reported remorse before pronouncing sentence. Judge Dimke also noted the “epidemic” of sexual abuse occurring on the Yakama Nation Indian Reservation.

“Sexual violence has no place in any community, and it is especially devastating when it targets vulnerable victims and occurs within communities already impacted by an epidemic of abuse,” said Acting U.S. Attorney Richard R. Barker. “This sentence reflects the seriousness of Mr. Speedis’ conduct and our unwavering commitment to seeking justice for victims of sexual assault. My office will continue working closely with our Tribal partners to hold offenders accountable and support survivors on their path to healing.”

“Not only did Mr. Speedis sexually assault this victim, he recorded that assault and then sent it to her.” said W. Mike Herrington, Special Agent in Charge of the FBI’s Seattle field office. “I hope his acknowledgement of guilt can aid in the victim’s recovery from this disturbing episode. The FBI is committed to justice for Native Women, who too often are targets of crimes of violence.”

This case was investigated by the Federal Bureau of Investigation and the Yakama Nation Police Department. This case was prosecuted by Assistant United States Attorney Letitia A. Sikes.

1:24-cr-02043-MKD.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Subcontractor Pleads Guilty to Conspiracy to Bribe General Services Administration Official

Source: Office of United States Attorneys

Greenbelt, Maryland – Today, a Mt. Airy, Maryland, man pled guilty to conspiring to bribe a U.S. General Services Administration (GSA) official, wire fraud in connection with an Economic Injury Disaster Loan, and possession of a machine gun with an obliterated serial number.

According to court documents, Christopher Brackins, 51, conspired to bribe Public Official A, a former GSA contracting officer’s representative. GSA is a federal agency that manages federal property. Brackins owned a general construction company that performed subcontracting work on GSA projects.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Matthew R. Galeotti, Head of the Justice Department’s (DOJ) Criminal Division; Deputy Inspector General Robert Erickson, GSA Office of Inspector General (GSA-OIG); Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI) Baltimore Field Office; Acting Inspector General Steven A. Stebbins, U.S. Department of Defense Office of Inspector General (DOD-OIG); and Inspector General Joseph V. Cuffari, Ph.D., U.S. Department of Homeland Security Office of Inspector General (DHS-OIG).

As outlined in court documents, between 2018 and 2021, Brackins provided approximately $50,000 worth of money and other things of value to Public Official A in exchange for Public Official A’s role in directing GSA projects to Brackins’s company. For example, in late 2018, as part of the bribery scheme, Brackins paid a fraudulently inflated bonus to one of his employees. Brackins then directed the employee to pay Public Official A $8,000 in cash from the fraudulently inflated bonus check. Similarly, in early 2021, Brackins paid Public Official A $25,000, at Public Official A’s direction, using an intermediary who accepted the payments through the intermediary’s air-conditioning repair business. The defendant and his company earned an estimated $133,413 in profits from this scheme.

Brackins pled guilty to conspiracy to commit bribery of a federal public official. He faces a maximum penalty of five years in prison followed by up to three years of supervised release. Brackins also pled guilty to wire fraud and possession of a machine gun, which carry a maximum penalty of 20 years and 10 years in prison, respectively, and up to three years of supervised release each. U.S. District Judge Deborah L. Boardman has scheduled sentencing for Wednesday, September 10, at 2 p.m.

Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Hayes commended the GSA-OIG, FBI, DOD-OIG, and DHS-OIG for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Joel Crespo and DOJ Trial Attorney Jonathan E. Jacobson who are prosecuting the federal case.

For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

# # #

MIL Security OSI –

April 22, 2025
MIL-OSI: Five Star Bancorp Declares First Quarter Cash Dividend

Source: GlobeNewswire (MIL-OSI)

RANCHO CORDOVA, Calif., April 21, 2025 (GLOBE NEWSWIRE) — Five Star Bancorp (Nasdaq: FSBC) (“Five Star” or the “Company”), a holding company that operates through its wholly owned banking subsidiary, Five Star Bank (the “Bank”), announced today the declaration of a cash dividend of $0.20 per share on the Company’s voting common stock. The dividend is expected to be paid on May 12, 2025, to shareholders of record as of May 5, 2025.

About Five Star Bancorp
Five Star is a bank holding company headquartered in Rancho Cordova, California. Five Star operates through its wholly owned banking subsidiary, Five Star Bank. The Bank has eight branches in Northern California. For more information, visit https://www.fivestarbank.com.

Special Note Concerning Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements represent plans, estimates, objectives, goals, guidelines, expectations, intentions, projections, and statements of the Company’s beliefs concerning future events, business plans, objectives, expected operating results, and the assumptions upon which those statements are based. Forward-looking statements include without limitation, any statement that may predict, forecast, indicate, or imply future results, performance, or achievements, and are typically identified with words such as “may,” “could,” “should,” “will,” “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,” “plan,” or words or phases of similar meaning. The Company cautions that the forward-looking statements are based largely on the Company’s expectations and are subject to a number of known and unknown risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company’s control. Such forward-looking statements are based on various assumptions (some of which may be beyond the Company’s control) and are subject to risks and uncertainties, which change over time, and other factors, which could cause actual results to differ materially from those currently anticipated. New risks and uncertainties may emerge from time to time, and it is not possible for the Company to predict their occurrence or how they will affect the Company. If one or more of the factors affecting the Company’s forward-looking information and statements proves incorrect, then the Company’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, forward-looking information and statements contained in this press release. Therefore, the Company cautions you not to place undue reliance on the Company’s forward-looking information and statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements are set forth in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 under the section entitled “Risk Factors,” and other documents filed by the Company with the Securities and Exchange Commission from time to time.

The Company disclaims any duty to revise or update the forward-looking statements, whether written or oral, to reflect actual results or changes in the factors affecting the forward-looking statements, except as specifically required by law.

Investor Contact:
Heather C. Luck, Chief Financial Officer
Five Star Bancorp
(916) 626-5008
hluck@fivestarbank.com

Media Contact:
Shelley R. Wetton, Chief Marketing Officer
Five Star Bancorp
(916) 284-7827
swetton@fivestarbank.com

The MIL Network –

April 22, 2025
MIL-OSI Security: Lexington Man Sentenced for Conspiracy to Distribute Methamphetamine

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

Acting United States Attorney Matthew R. Molsen announced that Roberto Ceja, Jr., 33, of Lexington, Nebraska, was sentenced on April 16, 2025, in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine. United States District Judge Brian C. Buescher sentenced Ceja to 66 months’ imprisonment. There is no parole in the federal system. After Ceja is released from prison, he will begin a 3-year term of supervised release.

This case involved a Title III wiretap investigation that involved three of Ceja’s cell phones. Co-conspirators were also intercepted involving discussions about narcotics and meeting under surveillance. As part of the investigation, the Federal Bureau of Investigation conducted three undercover buys from Liban Mohamud Adan who investigators learned was being supplied by Ceja. Ceja was responsible for distributing 88 grams of actual methamphetamine in the Lexington area.

Liban Mohamud Adan pled guilty to conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. He was sentenced to 120 months’ imprisonment followed by a 5-year term of supervised release.

This case was investigated by the Federal Bureau of Investigation, Nebraska State Patrol, and Immigration and Customs Enforcement. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

MIL Security OSI –

April 22, 2025
MIL-OSI USA: Walgreens Agrees to Pay Up to $350M for Illegally Filling Unlawful Opioid Prescriptions and for Submitting False Claims to the Federal Government

Source: US State of California

Note: View settlement here.

The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.

The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.

The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.

In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”

“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”

“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”

“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”

“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”

“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”

“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”

In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.

“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation’s largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”

“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”

“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”

The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.

The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).

The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.

The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.

The claims asserted against defendants are allegations only and there has been no determination of liability.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.

For information about the U.S. Attorneys’ Offices, visit:

For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal healthcare fraud, visit:

MIL OSI USA News –

April 22, 2025
MIL-OSI Security: Lolo Man Sentenced to 20 Years in Prison for Distributing Child Pornography

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

MISSOULA – A Lolo man who received and distributed child pornography was sentenced today to 240 months in prison to be followed by lifetime supervised release, U.S. Attorney Kurt Alme said.

Erik Robert Salazar, 29, pleaded guilty in November 2024 to one count of distribution of child pornography and one count of receipt of child pornography.

U.S. District Judge Dana Christensen presided.

The government alleged in court documents that on September 13, 2023, Missoula County Sheriff’s Office Internet Crimes Against Children (ICAC) detectives received a Cyber Tipline Report from the National Center for Missing and Exploited Children (NCMEC). The report originated from Snapchat, who reported to NCMEC that a user, later identified as Salazar, had uploaded two images of child sexual abuse material to their servers on August 19, 2023.

Through legal process, detectives determined the Snapchat account in question belonged to Salazar. Detectives received the remaining contents of Salazar’s Snapchat account and reviewed his communications with other parties.

Salazar’s communications were replete with contact with minor females on dates ranging from September 2015 to October 31, 2023. Salazar consistently requested images and videos of those minors engaged in sexually explicit conduct. Some of the minors sent Salazar images and videos in response to his requests. Additionally, Salazar used Snapchat to send some of these minors images and videos depicting other minors engaged in sexually explicit conduct. For example, beginning on August 4, 2023, Salazar began to communicate on Snapchat with a minor female (MV1) who was then 15 years old. In their communications, MV1 informed Salazar of her age, which Salazar indicated sexually excited him. Throughout the communications, Salazar solicited nude images of MV1, which she sent. MV1 also reported that Salazar sent her at least one video of a child engaged in sexually explicit conduct. MV1 reported Salazar told her he wanted to have a baby with her and asked MV1 if she would allow him to perform similar acts on their future daughter.

Salazar was arrested in Missoula, Montana, for a related offense on October 31, 2023, and was interviewed by detectives. He admitted the Snapchat account involved in the cyber tip belonged to him and that he received images depicting children engaged in sexually explicit conduct using the account.

The U.S. Attorney’s Office prosecuted the case and the investigation was conducted by the FBI and Missoula County Sheriff’s Office.

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

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MIL Security OSI –

April 22, 2025
MIL-OSI Security: Kalispell Man Sentenced to Mor Than 10 Years in Prison for Conspiring to Distribute Drugs on the Blackfeet Indian Reservation

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

GREAT FALLS – A Kalispell man who conspired to distribute drugs on the Blackfeet Indian Reservation was sentenced today to 128 months in prison to be followed by 5 years of supervised release, U.S. Attorney Kurt Alme said.

Cameron Lee Richard Carr, 34, pleaded guilty in September 2024 to possession with intent to distribute methamphetamine and fentanyl.

Chief U.S. District Judge Brian Morris presided.

The government alleged in court documents that in early November 2023, law enforcement received information Carr was trafficking illegal drugs from Kalispell, Montana to Browning, Montana. On November 28, 2023, Carr was observed leaving the Going to the Sun Inn in Browning. A Blackfeet Law Enforcement Services officer saw Carr run a stop sign and attempted to conduct a traffic stop. Carr fled before eventually stopping his vehicle and attempting to run away on foot. He was apprehended by the officer and arrested. The officer saw Carr reach for his waistband when he was arrested, so the officer searched him for weapons before placing him in a patrol vehicle. The officer recovered suspected meth and fentanyl from and noticed a 9 mm Ruger handgun on the ground near the area where Carr was apprehended.

Law enforcement searched Carr’s vehicle and seized 11 additional firearms, 500 grams of methamphetamine, 168 grams of fentanyl in pill and powder form, and small amounts of heroin, oxycodone, morphine, and cocaine. On December 1, 2023, during an interview with law enforcement, Carr admitted distributing drugs in Browning.

The U.S. Attorney’s Office prosecuted the case and the investigation was conducted by the FBI, DEA, Blackfeet Law Enforcement Services, and the Glacier County Sheriff’s Office.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

XXX

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Federal Jury Convicts California Man of Assaulting a Federal Officer

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

Salt Lake City, Utah – A federal jury in Salt Lake City returned a guilty verdict against a California man after he assaulted a federal officer while law enforcement attempted to arrest him on an outstanding warrant.

Gabriel Gigena, 41, of Valley Springs, CA, was charged by indictment on July 10, 2024.

According to court documents and evidence presented at trial, on Saturday May 4, 2024, members of the United States Marshal Service (USMS) were summoned to assist with the apprehension of Gigena, who was wanted for a warrant issued by the State of California. Law enforcement learned Gigena was at a park with his twin three-year-old daughters in Park City, Utah. In a briefing, members of the arrest team outlined their goal to take Gigena into custody while ensuring the safety of his children and others.

According to evidence and testimony presented at trial, as Gigena walked down a parking lot, two task force officers with the USMS were tasked with apprehending Gigena and securing the children. However, security concerns hastened law enforcement’s approach, which resulted in officers charging at and tackling Gigena. During the tackle, one of the officers pushed Gigena’s hands away from the two young girls. As this officer and Gigena fell to the ground Gigena placed his arm around the officer’s neck and started to strangle him. The officer testified in court that Gigena applied maximum force to his neck. Other officers on scene called out “police” and told Gigena to stop. Meanwhile, additional agents arrived on scene in vehicles that had flashing red and blue lights. These additional officers also assisted in taking control of Gigena. At one point, another officer displayed and threatened the use of a taser to get Gigena to comply. Another officer gained control of Gigena’s arm and removed it from the officer’s neck. Officers testified that Gigena never relented his assault or resistance of law enforcement until he was forced to do so.

According to witness testimony, Gigena made multiple statements about being the “chief of the Indian people” and that they were not allowed to arrest him. Gigena was taken into custody soon after the assault.

“His resistance was aimed at injuring the officer,” said Assistant U.S. Attorney Drew Yeates during closing arguments. “Despite multiple warnings, despite multiple commands, the defendant fought to the bitter end until he was finally placed in handcuffs.”

Gigena’s sentencing hearing is scheduled for July 1, 2025 at 10:00 a.m. in courtroom 8.3 before Senior U.S. District Court Judge Ted Stewart at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.

Acting United States Attorney Felice John Viti of the District of Utah made the announcement.

The case is being investigated by the FBI Salt Lake City Field Office.

Assistant United States Attorneys Sam Pead and J. Drew Yeates of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.

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

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Walgreens Agrees to Pay Up to $350M for Illegally Filling Unlawful Opioid Prescriptions and for Submitting False Claims to the Federal Government

Source: United States Department of Justice Criminal Division

Note: View settlement here.

The Justice Department, together with the Drug Enforcement Administration (DEA) and Department of Health and Human Services Office of Inspector General (HHS-OIG), today announced a $300 million settlement with Walgreens Boots Alliance, Walgreen Co., and various subsidiaries (collectively, Walgreens) to resolve allegations that the national chain pharmacy illegally filled millions of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA) and then sought payment for many of those invalid prescriptions by Medicare and other federal health care programs in violation of the False Claims Act (FCA). The settlement amount is based on Walgreens’s ability to pay. Walgreens will owe the United States an additional $50 million if the company is sold, merged, or transferred prior to fiscal year 2032.

The government’s complaint, filed on Jan. 16 and amended April 18 in the U.S. District Court for the Northern District of Illinois, alleges that from approximately August 2012 through March 1, 2023, Walgreens, one of the nation’s largest pharmacy chains, knowingly filled millions of unlawful controlled substance prescriptions. These unlawful prescriptions included prescriptions for excessive quantities of opioids, opioid prescriptions filled significantly early, and prescriptions for the especially dangerous and abused combination of three drugs known as a “trinity.” Walgreens pharmacists allegedly filled these prescriptions despite clear red flags indicating a high likelihood that the prescriptions were invalid because they lacked a legitimate medical purpose or were not issued in the usual course of professional practice.

The complaint further alleges that Walgreens pressured its pharmacists to fill prescriptions quickly and without taking the time needed to confirm that each prescription was lawful. Walgreens’s compliance officials also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions and even intentionally deprived its own pharmacists of crucial information, including by refusing to share internal data regarding prescribers with pharmacists and preventing pharmacists from warning one another about certain problematic prescribers.

In light of Friday’s settlement, the United States has moved to dismiss its complaint. Walgreens will also move to dismiss a related declaratory judgment action filed in U.S. District Court for the Eastern District of Texas.

“Pharmacies have a legal responsibility to prescribe controlled substances in a safe and professional manner, not dispense dangerous drugs just for profit,” said Attorney General Pamela Bondi. “This Department of Justice is committed to ending the opioid crisis and holding bad actors accountable for their failure to protect patients from addiction.”

“This settlement resolves allegations that, for years, Walgreens failed to meet its obligations when dispensing dangerous opioids and other drugs,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “We will continue to hold accountable those entities and individuals whose actions contributed to the opioid crisis, whether through illegal prescribing, marketing, dispensing or distributing activities.”

“Importantly, Walgreens’s agreements with the DEA and HHS-OIG provide swift relief in the form of monitoring and claims review that will improve Walgreens’s practices immediately,” said U.S. Attorney Andrew S. Boutros for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to ensure that opioids are properly dispensed and that taxpayer funds are only spent on legitimate pharmacy claims.”

“This landmark civil settlement is the largest Controlled Substances Act resolution in our district’s history and once again confirms the high priority our office has placed upon confronting those responsible for the opioid crisis here,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We are grateful for the energy and collaborative spirit brought to this effort by our colleagues in the DEA, the Department of Justice Civil Frauds Section and Consumer Protection Branch, and the United States Attorneys’ Offices for the Northern District of Illinois, District of Maryland, Eastern District of New York, and Eastern District of Virginia.”

“With the power to dispense potentially harmful substances comes the responsibility to ensure that every prescription is legitimate before it is filled,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “When pharmacies fail that responsibility, this office will work with others across the country to hold accountable those who put patients and communities at risk.”

“This settlement holds Walgreens accountable for failing to comply with its critical responsibility to prevent the diversion of opioids and other controlled substances,” said U.S. Attorney John J. Durham for the Eastern District of New York. “The settlement also underscores our office’s continued commitment to ensure that all persons and businesses that fill controlled-substance prescriptions adhere to the requirements of the Controlled Substances Act that are designed to prevent highly addictive medications from being used for illegitimate purposes.”

“Strict compliance with the law is essential to safeguarding the public, who rely on carefully considered and limited prescriptions for their health and wellbeing,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “Those companies and individuals authorized to provide controlled substances have a professional responsibility to ensure that the prescriptions they fill are within the course of professional practice and regulations. Medically unnecessary prescriptions are a cost ultimately borne by the taxpayers and consumers. As we continue to address the opioid crisis here in Virginia and across the nation, we are determined to ensure pharmacies and pharmacists operate within the law.”

In addition to the monetary payments announced today, Walgreens has entered into agreements with DEA and HHS-OIG to address its future obligations in dispensing controlled substances. Walgreens and DEA entered into a memorandum of agreement that requires the company to implement and maintain certain compliance measures for the next seven years. Walgreens must maintain policies and procedures requiring pharmacists to confirm the validity of controlled substance prescriptions prior to dispensing controlled substances, provide annual training to pharmacy employees regarding their legal obligations relating to controlled substances, verify that pharmacy staffing is sufficient to enable pharmacy employees to comply with those legal obligations, and maintain a system for blocking prescriptions from prescribers whom Walgreens becomes aware are writing illegitimate controlled substance prescriptions. Walgreens has also entered into a five-year Corporate Integrity Agreement with HHS-OIG, which further requires Walgreens to establish and maintain a compliance program that includes written policies and procedures, training, board oversight, and periodic reporting to HHS-OIG related to Walgreens’s dispensing of controlled substances.

“Pharmacies have an obligation to ensure that every prescription for highly addictive controlled substances is legitimate and issued responsibly in compliance with the Controlled Substances Act,” said DEA Acting Administrator Derek Maltz. “When one of the nation’s largest pharmacies fails at this obligation, they jeopardize the health and safety of their customers and place the American public in danger. The DEA remains committed to protecting all Americans from unscrupulous practices that prioritize profit over patient safety.”

“Pharmacies that neglect their legal duties and their critical role in delivering safe and appropriate medications to enrollees of federal health care programs, and instead exploit these programs for market advantage, squander taxpayer dollars and put patient safety at risk,” said Acting Inspector General Juliet T. Hodgkins of HHS-OIG. “HHS-OIG and our law enforcement partners will use every tool in our arsenal to prevent these outcomes. This settlement and corporate integrity agreement reflect HHS-OIG’s commitment to ensuring compliance, correcting failures in oversight, and protecting the foundation of federally-funded health care.”

“In the midst of the opioid crisis that has plagued our nation, we rely on pharmacies to prevent not facilitate the unlawful distribution of these potentially harmful substances,” said Norbert E. Vint, Deputy Inspector General Performing the Duties of the Inspector General at OPM OIG. “We applaud our investigative staff, law enforcement partners, and partners at the Department of Justice for their hard work and unwavering commitment to protecting patients from harm.”

The civil settlement resolves four cases brought under the qui tam, or whistleblower, provisions of the FCA by former Walgreens employees. The FCA authorizes whistleblowers to sue on behalf of the United States and receive a share of any recovery. It also permits the United States to intervene and take over such lawsuits, as it did here. The relators will receive a 17.25% share of the government’s FCA recovery in this matter.

The United States’ pursuit of this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS-OIG, at 800-HHS-TIPS (800-447-8477).

The DEA, HHS-OIG, Defense Criminal Investigative Service, Defense Health Agency (DHA), Office of Personnel Management (OPM), Department of Labor (DOL) Office of Inspector General, Department of Veterans Affairs (VA), Office of Inspector General, FBI Chicago Field Office, and the U.S. Attorneys’ Offices for the District of Colorado, Southern District of California, Eastern District of California, Northern District of California, Eastern District of Washington, Southern District of Alabama, Southern District of Illinois, Central District of Illinois, District of Arizona, Western District of Texas, Northern District of Texas, District of Puerto Rico, and Eastern District of Louisiana provided substantial assistance in the investigation.

The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Consumer Protection Branch (Assistant Director Amy DeLine and Trial Attorney Nicole Frazer) and Commercial Litigation Branch, Fraud Section (Assistant Director Natalie Waites and Trial Attorney Joshua Barron), as well as from the U.S. Attorneys’ Offices for the Northern District of Illinois (Assistant U.S. Attorney Valerie R. Raedy), Middle District of Florida (Chief of the Civil Division Randy Harwell and Assistant U.S. Attorney Carolyn Tapie), District of Maryland (Chief of the Civil Division Thomas Corcoran), Eastern District of New York (Assistant U.S. Attorney Elliot M. Schachner) and Eastern District of Virginia (Assistant U.S. Attorney John Beerbower). Fraud Section senior financial analyst Karen Sharp provided support for the matter.

The claims asserted against defendants are allegations only and there has been no determination of liability.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. Additional information about the Fraud Section of the Civil Division and its enforcement efforts can be found at www.justice.gov/civil/fraud-section.

For information about the U.S. Attorneys’ Offices, visit:

For information about the federal agencies involved in this investigation and their work to combat the opioid crisis and federal healthcare fraud, visit:

MIL Security OSI –

April 22, 2025
MIL-OSI Canada: Transnational Repression Operation
Source: Government of Canada News

As part of its mandate to monitor the digital information ecosystem during the general election, the Security and Intelligence Threats to Elections (SITE) Task Force has observed a transnational repression (TNR) operation targeting the 45^th general election.

Sample Images

These are just some examples among many. It is important for the SITE Task Force to avoid amplifying this type of transnational repression campaign any further.

Background

In December 2024, Hong Kong Police announced they would provide monetary rewards for information that would lead to the arrest of six individuals living overseas, including two Canadians.

The decision by Hong Kong to issue international bounties and cancel the passports of democracy activists and former Hong Kong lawmakers, is deplorable. This attempt by Hong Kong authorities to conduct TNR“>TNR abroad, including by issuing threats, intimidation or coercion against Canadians or those in Canada, will not be tolerated.

One of the six individuals targeted by Hong Kong is Joe Tay, Conservative Party candidate for Don Valley North,

and known for his opposition to PRC“>PRC laws and practices in the Hong Kong Special Administrative Region.

The People’s Republic of China (PRC), including Mainland China and Hong Kong, uses a variety of tactics to carry out TNR activities. It exploits PRC-based family members to pressure those in Canada to cease certain activities the PRC views as hostile, or to return to the PRC. It also threatens PRC-based family members with a range of potential coercive actions, including detention or financial penalties. The PRC also leverages overseas actors to monitor, surveil and report on others in Canada.

To support its TNR activities, the PRC uses its diplomatic missions, PRC-linked organizations affiliated with the United Front Work Department, community organizations and influential community leaders, among others.

About transnational repression

Transnational Repression (TNR) takes place when foreign governments reach beyond their state borders to advance their interests or silence criticism and dissent using intimidation, threats or violence, often against diaspora and exile communities.

TNR activities typically target political dissidents, human rights and democracy defenders, and religious and ethnic minority groups. But TNR also increasingly targets the people and organizations that defend the victims. This can include activists, international students and scholars, lawyers and doctors, as well as journalists.

Hostile state actors will use a variety of tactics to extend their reach into Canada:
- Physical intimidation and violence: Monitoring and surveillance, vandalism, threats, abduction, assault, or attempted murder. Actors can use coercion or assault as punishment or to influence opinion, and hostile state actors sometimes hire organized crime groups or proxies for this.
- Threats against overseas relatives and other connections: Threats against relatives and partners in the home country, to relay messages or force an action in Canada. This creates a sense of vulnerability, as close relations abroad may be victim to the laws and regulations of a non-democratic country.
- Legal manipulation: Foreign states abusing legal mechanisms for coercive purposes, like libel suits, extraditions agreements, bounties for information on individuals, Interpol Red Notices, imposing sanctions, and refusing visa applications for personal or professional travel.
- Community ostracism: Rejection from community associations, use of labels such as ‘extremist’ or ‘traitor’, or loss of access to social events and employment opportunities.
- Malicious Digital Activity: Hacking, cyberbullying, targeted deepfakes, online defamation and disinformation, doxxing, or threatening online messages.
Impact

TNR causes harm both to the victims and the community.
- At the individual level, there is a profound psychological impact on victims who experience TNR. They might experience fear, anxiety, and stress due to the continuous surveillance and harassment they face. In fact, just knowing that a foreign government can monitor their activities or harm their families can lead many victims of TNR to self-censor or withdraw from public life.
- At the community level, TNR creates mistrust and division. Targeted communities may become fragmented as individuals fear infiltration by foreign agents or retaliation for associating with activists.
Transnational Repression Operation

During the writ period, SITE has observed two significant trends related to Mr. Tay across multiple social media platforms.
1. Inauthentic and coordinated amplification of content related to the bounty and arrest warrant against Mr. Tay, as well as content related to his competence for political office.
  The SITE Task Force has seen that multiple accounts or platforms published or interacted with content at similar times and dates – sometimes within minutes or even seconds of each other. This creates an increased volume of content, making it more likely that users of these platforms are exposed to the amplified narratives.
2. Deliberate suppression of search results, or “keyword filtering” censoring Mr. Tay’s name in simplified and traditional Chinese on platforms based in the PRC.
  The SITE Task Force is observing deliberate efforts to suppress any new content about Mr. Tay, and when users search his name, the search engine only returns information about the bounty.
This is not about a single incident with high levels of engagement. It is a series of deliberate and persistent activity across multiple platforms – those in which Chinese-speaking users in Canada are active, including: Facebook, WeChat, TikTok, RedNote, and Douyin, a sister-app of TikTok for the Chinese market.

Overall engagement levels since December 2024 have been low, with an increase at various points during the writ period. The combined instances, inauthentic and coordinated amplification across multiple platforms, and the concerning trend of deliberate search suppression on platforms frequented by Canadians, have led us to determine that voters need to be aware.

It is clear that this was a deliberate attempt to amplify inauthentic content. However, at least until this point, that content has not generated much traction.

Reporting transnational repression

If you are in immediate danger, always call 9-1-1.
1. Take a record of events:
  As soon as it is safe, write down or record the situation as precisely as possible. Include descriptive details about the person, date and time, location, other witnesses, and event. For instance: Did it happen in-person? Was it a phone call? An email? Any security cameras or witnesses nearby?
2. Report it:
  Contact your local police, the Royal Canadian Mounted Police (RCMP) or the Canadian Security Intelligence Service (CSIS). Clearly articulate why you believe you are being targeted and mention that you believe this is transnational repression.
Even if the piece of information provided may not on its own be something that meets a criminal threshold, it may be a building block that helps police to identify threats, support a larger police response, or even contribute to another ongoing investigation.

When the matter concerns your vote, you can also reach out to the Office of the Commissioner of Canada Elections, and the SITE Task Force.

MIL OSI Canada News –
April 22, 2025
MIL-OSI Security: Bay Area Defendants Plead Guilty to Bank Robberies in the Eastern District of California and the East Bay

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

SACRAMENTO, Calif. — Dontae Jerome Jones Jr., 20, and JoMya Mauriyne Futch, 21, each pleaded guilty today to one count of bank robbery, and Futch pleaded guilty to one count of perjury, Acting U.S. Attorney Michele Beckwith announced.

On March 13, 2025, co-defendant Yasmin Charisse Millett, 22, pleaded guilty to one count of bank robbery.

According to court documents, between June 2023 and September 2024, Jones and Millett conspired to commit at least 10 bank robberies in Sacramento, Vallejo, Suisun City, Benicia, Concord, and Antioch. Jones and Millett worked together and with others, primarily women they recruited, such as Futch, to facilitate a patterned series of bank robberies. The participants drove to bank and credit union branches, entered the branches with threatening notes demanding money, presented the notes to branch employees, took cash, and exited the branches to a waiting getaway car. Generally, the notes would instruct the bank employees to provide money or “I will kill everyone in here.” After a successful robbery, the members of the conspiracy distributed the stolen money amongst themselves.

Jones and Millett actively sought and groomed recruits to act as the note passers. Millett advertised the conspiracy on Instagram in videos and photographs of herself and other participants holding large amounts of cash. Jones and Millett sometimes directed recruits to wear dark sunglasses during the robberies to conceal their identities and carry purses in order to carry the stolen money away from the banks and credit unions.

On July 17, 2023, Jones and Millett used a stolen white Audi A7 with dark tinted windows to pick up Futch and commit a bank robbery at a credit union in Suisun City. Jones and Millett provided Futch with instructions on how to commit the robbery. Jones and Millett waited in the vehicle while Futch entered the bank and handed an employee a note demanding money, threatening to shoot the employee if the employee did not comply with the demand. After reading the note, the employee gave Futch money. Futch returned to the waiting getaway vehicle and Jones, Millett, and Futch each took a portion of the stolen money.

The next day, law enforcement conducted a traffic stop of the stolen white Audi A7. Millett was driving the stolen car and Jones was the front seat passenger. During the traffic stop, law enforcement officers found bait money on Millett and Jones from the bank robbery that occurred the day before in Suisun City. The officers also found a crumpled post-it demand note on the driver’s seat that stated, “Don’t Make eye contact Don’t look suspicious Don’t Push emergency Button Put smile on your face or I will shoot.”

On Aug. 15, 2024, Futch appeared as a witness under oath before a grand jury and knowingly made false statements. During her testimony, Futch stated that on July 17, 2023, she believed that she was going to open up a bank account for Millett—not commit a robbery. Futch further claimed that she had no clue that she was committing a bank robbery, and maintained throughout her testimony that she did not know about any plan to commit a bank robbery. However, these statements were false because Millett informed Futch about her plans to commit a bank robbery in the days leading up to July 17, 2023, and Futch had agreed to commit bank robberies with Millett and Jones.

This case is the product of an investigation by FBI field offices in San Francisco and Sacramento, with assistance from the Police Departments of Sacramento, Vacaville, Suisun City, Vallejo, Antioch, Benicia, Concord, Hayward, and Fremont, the Alameda County Sheriff’s Office, and the California Highway Patrol. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.

Chief U.S. District Judge Troy L. Nunley is scheduled to sentence Jones and Futch on Aug. 7, 2025. Jones and Futch face a maximum statutory penalty of 20 years in prison and a $250,000 fine for the bank robbery conviction. Futch faces a maximum penalty of five years in prison and a $250,000 fine for her perjury conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: New Jersey Woman Sentenced to Five Years in Prison for Residential Marijuana Grows in Sacramento and Placer Counties

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

SACRAMENTO, Calif. — Xiu Ping Li, 48, residing in Skillman, New Jersey, was sentenced today by U.S. District Judge Daniel J. Calabretta to five years in prison and four years of supervised release for three counts of manufacturing marijuana, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, Li operated multiple residential marijuana grows in Sacramento and Placer Counties that yielded more than 8,000 marijuana plants and 21.4 pounds of processed marijuana found during the execution of search warrants in 2016 and 2017. Li also acknowledged using proceeds from a marijuana grow to buy another property to continue growing marijuana.

This case was the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, IRS Criminal Investigation, the Elk Grove Police Department, the Placer County Sheriff’s Office, and the Sacramento Police Department. Assistant United States Attorney Roger Yang prosecuted the case.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Owner of Scott, LA Non-Profit Corporation and Two Daughters Indicted for Conspiracy to Commit Wire Fraud

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

LAFAYETTE, La. – A federal grand jury in Lafayette, Louisiana has returned an indictment charging a Lafayette man and his two daughters with conspiracy to commit wire fraud and wire fraud in connection with a scheme to defraud the Child and Adult Care Food Program (“the Program”), a federal program operated by the U.S. Department of Agriculture (“USDA”), announced Acting United States Attorney Alexander C. Van Hook.

The indictment charges Brian Desormeaux, 64, and his two daughters, Amy Desormeaux Hernandez, 38, and Lenzi Desormeaux Babineaux, 34, each with one count of conspiracy to commit wire fraud and one count of wire fraud. According to the indictment, Regional Nutrition Assistance, Inc. (“RNA”) was a Louisiana non-profit corporation located in Scott, Louisiana and was owned and operated by Brian Desormeaux and he served as its Executive Director. Amy Desoremaux Hernandez served as its Assistant Director and Lenzi Desormeaux Babineaux served as its Senior Program Manager.

RNA was a “Sponsoring Organization” for the Program and was responsible for administering it in certain locations, including “Day Care Homes,” which are organized childcare programs for children enrolled in a private home. The Program authorizes assistance to states through grants-in-aid and other means to assist non-profit food service programs for children and adult participants in non-residential institutions that provide care. It is intended to provide aid to the participants and family or group day care homes to provide nutritious foods for the health and wellness of young children, older adults, and chronically impaired persons.

The indictment alleges that the defendants had access to KidKare/Minute Menu HX, the online portal used by Sponsoring Organizations to administer the Program. It is alleged that it was part of the conspiracy that defendant Amy Hernandez would access the online portal at the beginning of the month to change Day Care Home Providers to “inactive” status to avoid monitoring and oversight by the Louisiana Department of Education (“LDOE”). Then at the end of the month, she would change those “inactive” Day Care Home providers back to “active” status so that claims could be submitted to LDOE for reimbursement by USDA.

Allegations in the indictment state that all three defendants submitted or caused the submission of false and fraudulent claims to LDOE for reimbursement from USDA, to include claims that children were being cared for and fed at Day Care Home providers when in fact, they were not. In fact, it is alleged that some of those Day Care Home providers were deceased at the time claims were made on their behalf.

The indictment also alleges that Lenzi Desormeaux Babineaux submitted false and fraudulent state fire marshal inspection reports for Day Care Home providers so that they would be in compliance with LDOE’s requirements for inclusion in the Program, which was necessary for reimbursements. The indictment further alleges that these three defendants submitted false and fraudulent claims seeking reimbursement they were not entitled to, causing LDOE and USDA to pay at least $400,000 in fraudulent claims.

If convicted, each defendant faces not more than 20 years in prison, a $250,000 fine, or both, on each count.

The case is being investigated by the FBI and the Louisiana State Office of Inspector General and is being prosecuted by Assistant United States Attorney Lauren L. Gardner.

An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

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MIL Security OSI –

April 22, 2025
MIL-OSI Security: Houston ISD Official and Contractor Guilty in Nine-Year, Multimillion-Dollar Fraud Scheme

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

HOUSTON – A Houston federal jury has returned guilty verdicts against the former chief operating officer of the Houston Independent School District (HISD) and an HISD contractor, announced U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas (SDTX).

The jury deliberated for only six hours before convicting Brian Busby and Anthony Hutchison following a four-week trial. Both were convicted of conspiracy, bribery, filing false tax returns and witness tampering. Hutchison was also convicted of seven counts of wire fraud.

Over the course of the trial, the jury heard testimony from over 50 witnesses regarding the 33 charged counts involving bribery, false invoicing schemes, witness tampering and tax violations. Five former HISD officials testified, all of whom received bribe payments – Rhonda Skillern-Jones, former HISD Board of Education president; Derrick Sanders, officer of construction services; Alfred Hoskins, general manager of facilities, maintenance and operations; Gerron Hall, area manager for maintenance – south; and Luis Tovar, area manager for maintenance – north.

They described the pressure Busby put on them to provide Hutchison’s companies more work with HISD as well as larger projects following Hurricane Harvey. They recounted how they received tens of thousands of dollars over the course of 2017 and 2018 or longer.

Skillern-Jones testified Busby told her she should use Hutchison’s company on school projects with the funds remaining from the school bond passed in 2012. They agreed that if the contract was given to Hutchison, then they could make some money off the projects. Following completion of the Holland Middle School and Pleasantville Elementary School projects, Busby met with Skillern-Jones outside of a Walmart parking lot to give her $12,000 in cash from Hutchison as the bribery payment for allocating her district’s portion of bond funds for projects Hutchison performed.

Sanders, who also socialized with Busby and Hutchison, described taking trips to Las Vegas with them where he would be paid bribes and recounted their lavish purchases. On one occasion when Hutchison paid him, he exclaimed “next,” signaling Busby to come into the room for his payment.

Hoskins testified his maintenance team did not want to use Just Construction because it was often more expensive than other vendors, but Busby pressured him to give Hutchison’s company more work. Testimony further revealed they would bypass the rotation or bid process in selecting vendors and just provide work directly to Hutchison’s companies.

The jury also saw a handwritten ledger seized from Hutchison’s residence which contained detailed notes of all HISD projects awarded to Just Construction. It included entries for bribe payments and locations where they were made.

Detailed evidence also revealed the extensive invoicing fraud scheme Hutchison perpetrated through his company Southwest Wholesale. Since 2015, Southwest Wholesale had been the exclusive mowing and landscape contractor for HISD. The jury heard testimony demonstrating how Hutchison continuously overbilled for years for the approximately 150 schools he was contracted to mow. He also similarly charged HISD over twice the cost of what he paid for the supplies and marked that inflated charge up 20%. He consistently overbilled HISD over the course of years for a loss in excess of $6 million.

Busby also made excessive cash deposits to over 18 bank accounts which was far more than his legitimate income. He attempted to explain it based on other sources of income, but the jury was not convinced it accounted for the close to $3 million cash deposits made over the course of five years that were not declared in his income tax returns for 2015-2019.

Hutchison similarly filed false tax returns in 2017 and 2018 wherein he deducted improper business expenses. Specifically, Hutchison obtained cash he used to pay bribes to HISD officials by writing company checks to vendors, who cashed the checks and provided the cash to him. He falsely stated on the memo line that they were in payment for work performed on HISD properties. He then caused the checks to be improperly deducted on corporate tax returns as business expenses. In reality, they were cashed to pay extensive gambling debts and cash bribe payments.

Hoskins also testified about the steps Busby and Hutchison took to interfere with the investigation. Specifically, Busby called Hoskins and told him to tell investigators Busby had nothing to do with the award of the maintenance contract to Hutchison and his company. Hoskins also described how Hutchison advised him that police had a handwritten ledger with numbers on it and that Hoskins should say it was for gambling.

“HISD is the largest school district in the state, and the people of Houston trusted that district officials would spend their tax dollars wisely and carefully. Instead, Busby and Hutchinson defrauded the school district and the taxpayers of millions of dollars, doing so to line their own pockets,” said Ganjei. “People need to have faith in their public institutions, and they can become understandably cynical when they hear of public servants stealing from school kids by taking bribes and over-billing. SDTX aimed to restore that public trust by bringing this multi-year investigation to trial, which lasted over four weeks and involved over 50 witnesses. I’m proud of the trial team for delivering justice here, and I thank our incredible law enforcement partners. Most of all, I’d like to thank the jury for devoting their precious time and attention over the past month. This case demonstrates that theft from schools won’t be tolerated and that the public can have confidence in their institutions.”

“For years, Busby and Hutchison defrauded the largest public school system in Texas out of millions of dollars – money that was intended to benefit the students of HISD,” said Special Agent in Charge Douglas Williams of the FBI Houston Field Office. “In turn, Busby and Hutchison also defrauded the taxpayers whose hard-earned dollars were fraudulently diverted for their greed and personal gain. Public corruption cases like this one are challenging to investigate and prove and erode the trust we place on our public servants. At the end of the day, we want to make sure corrupt individuals like Busby and Hutchison are brought to justice. Today’s guilty verdict is a step towards that justice. I’m proud of FBI Houston’s public corruption squad for the results of its years-long investigation and thank them, and the U.S. Attorney’s Office, for their commitment to this case and to its thousands of victims.”

U.S. District Judge Andrew Hanen presided over the trial and has set sentencing for July 28. At that time, Busby and Hutchison face up to five, 10 and 20 years, respectively, for the conspiracy, bribery and witness tampering charges. Hutchison also faces up to 20 years for each count of wire fraud. All charges also carry a $250,000 maximum possible fine.

Skillern-Jones, 39, Houston; Sanders, 50, Hoskins, 58, Hall, 48, all of Missouri City; and Tovar, 39, Huffman have pleaded guilty to the conspiracy charges. They face up to five years in prison.

Busby and Hutchison were permitted to remain on bond pending sentencing.

The FBI and IRS – Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Robert S. Johnson and Heather R. Winter are prosecuting the case.

MIL Security OSI –

April 22, 2025
MIL-OSI Security: FBI Joint Terrorism Task Force Turns 45

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

The Federal Bureau of Investigation is marking the 45th anniversary of its first Joint Terrorism Task Force. Formed in New York in 1980, the first JTTF became a model for law enforcement cooperation across the nation.

Today, the FBI has a JTTF at each of its 55 field offices and at many of its smaller offices—about 280 locations in all. JTTFs gather investigators, intelligence analysts, linguists, and tactical experts from federal, state, local, territorial, and tribal law enforcement and intelligence agencies. Task force members share intelligence and investigative leads and respond to threats and incidents.

“The JTTF model clearly demonstrates the power of law enforcement cooperation at all levels,” said FBI Director Kash Patel. “Preventing terrorism is a no-fail mission. Only by working together can we keep the nation safe.”

The FBI’s JTTF model dates to the 1979, when the New York Police Department and the FBI’s New York Field Office tackled the surge in violent bank robberies by pooling resources and expertise through a joint task force. In 1980, when terrorist bombings, bomb threats, and other violence plagued the city, officials decided to imitate the bank robbery task force. They announced the formation of the first JTTF in April 1980.

The first JTTF had 10 special agents and 10 police officers. The number of task forces grew over the years, with 35 JTTFs operating by the time terrorists attacked on 9/11. Shortly after 9/11, the FBI required all field offices to establish a JTTF. By the end of 2024, JTTFs drew nearly 4,400 members from 528 state, local, territorial, and tribal agencies and 53 federal agencies.

The FBI established its National Joint Terrorism Task Force to support the local task forces in June of 2002. The NJTTF at FBI Headquarters enhances communication, coordination, and cooperation from partner agencies.

JTTFs have disrupted dozens of plots in the past four decades, including a plan to attack millennial celebrations in Los Angeles in 2000; a plan to detonate a car bomb in Times Square in New York in 2010; and plans to sow chaos in Baltimore, Maryland, in 2022 and 2023 by destroying energy facilities.

JTTFs are also among the first responders to arrive at the scenes of horrific violence—whether they are terrorist-based or not—and lead the investigations of terrorist incidents.

Among the cases JTTFs have investigated are the 1993 bombing of the World Trade Center in New York; the bombings of U.S. embassies in Kenya and Tanzania in 1998; the bombing of the USS Cole in 2000; the 9/11 attacks in 2001; the Boston Marathon bombing in 2013; the mass shooting in San Bernardino, California, in 2015; the shooting at Naval Air Station Pensacola in Florida in 2019; and the January 1, 2025, truck attack in New Orleans.

Additional Resources:

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Celebrating 45 Years of FBI Joint Terrorism Task Forces

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

The model is so effective that other portions of the Bureau have since tried to emulate it, noted Supervisory Special Agent Jake Foiles, who oversees the FBI Kansas City JTTF.

“The FBI’s JTTF model has expanded and evolved and has been copied now by our cyber side, our counterintelligence side, by our traditional criminal side,” he said. “We now have task forces on many of the different squads and areas that the FBI works. And the reason for that is because that task force model is incredibly effective when you have a variety of different people from different agencies and different walks of life and backgrounds working day in and day out, every single day with each other.”

JTTFs are also powerful mechanisms for community outreach, briefing on topics such as what FBI investigations into terrorism matters actually look like, signs that someone might be mobilizing to violence, and why it’s important for Americans to proactively reach out to the FBI if they spot those kinds of indicators.

Ultimately, the FBI will investigate any individual who threatens violence, including those planning to commit an act of violence to further an ideology. (The FBI cannot initiate an investigation based solely on First Amendment-protected activity.)

According to Kansas Bureau of Investigation Director Tony Mattivi, JTTFs are critical in reviewing incoming leads to determine which terrorism threats are substantive. These task forces have an obligation to resolve any real or potential threat they’re aware of “because you never know which one of those is going to turn into a really significant threat,” he said. “And that’s, I think, some of the most important work that’s done on a daily basis inside the JTTF. And nobody sees it.”

Benefits of partnerships

Retired FBI Supervisory Special Agent Dana Kreeger—a veteran of the Kansas City JTTF—said the biggest benefit of JTTF participation is the ability to keep a finger on the pulse of the terrorism threat.

“Terrorism is not a local threat,” he said. “It’s happening all across the country; a lot of it is intertwined. We have threat actors in Kansas City that might be talking to threat actors in Chicago or L.A. or Portland or New York.”

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Executive Vice President of Insurance Brokerage Pleads Guilty in $133 Million Affordable Care Act Fraud Scheme

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

A Florida executive pleaded guilty today for his role in a scheme to submit fraudulent applications to enroll consumers in Affordable Care Act insurance plans (ACA plans) that were fully subsidized by the government. The purpose of the scheme was to obtain millions of dollars in commission payments from the insurance company that operated the ACA plans. The federal government paid at least $133,900,000 in subsidies for fraudulently enrolled individuals.

According to court documents, Dafud Iza, 54, an executive vice president of an insurance brokerage firm, participated in a scheme to fraudulently enroll ineligible individuals into ACA plans that offered tax credits to eligible enrollees. These tax credits, or “subsidies,” could be paid by the federal government directly to insurance plans as a payment toward the plan’s monthly premium. The scheme involved submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Iza and his accomplices deceptively marketed subsidized ACA plans to ineligible consumers and falsely inflated consumers’ incomes to obtain the federal subsidies.

In furtherance of the scheme, Iza and his accomplices targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and knew that “street marketers” working on their behalf offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Iza’s accomplices coached consumers on how to respond to application questions to maximize the subsidy amount paid by the federal government and provided addresses and social security numbers that did not match the consumers purportedly applying.

Iza pleaded guilty to one count of major fraud against the United States and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Acting Special Agent in Charge Brett Skiles of the FBI Miami Field Office; Acting Special Agent in Charge Jesus Barranco of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office; and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.

The FBI, HHS-OIG, and IRS-CI are investigating the case.

Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.

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

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

MIL Security OSI –

April 22, 2025
MIL-OSI Security: Miske Enterprise Member Sentenced to Seven Years in Federal Prison for Racketeering Conspiracy and Role in Kidnapping and Murder of Johnathan Fraser

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

HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Delia Fabro-Miske, 30, of Honolulu, was sentenced yesterday in federal court by U.S. District Judge Derrick K. Watson to 84 months of imprisonment, followed by 3 years of supervised release for racketeering conspiracy. Fabro-Miske pled guilty on January 12, 2024, in the middle of jury selection, to conspiring to conduct and participate in the conduct of the affairs of a racketeering enterprise, the “Miske Enterprise,” through racketeering activity that included bank fraud, obstruction of justice, and wire fraud.

Fabro-Miske admitted that she and codefendant Michael J. Miske committed bank fraud by submitting fraudulent paperwork in order to obtain leases for two vehicles that were used for one of Miske’s businesses. Fabro-Miske also obstructed a joint investigation into another of Miske’s businesses, Kamaaina Termite and Pest Control (“KTPC”), which was conducted by the Environmental Protection Agency and the Hawaii Department of Agriculture (“HDA”). At Miske’s direction, Fabro-Miske submitted to HDA falsified fumigation logs, which claimed that she was the certified applicator of chemicals on hundreds of jobs. In reality, most of the listed jobs were completed by unlicensed applicators. Fabro-Miske also fraudulently obtained Social Security Administration (“SSA”) survivor benefits at Miske’s direction by having her wages at KTPC decreased below the SSA benefits income threshold. At the same time, Miske paid Fabro-Miske in benefits that were not reported to the SSA or Internal Revenue Service.

Additionally, according to information provided to the Court, in or about 2017, Miske placed Fabro-Miske in charge of his businesses in an attempt to preserve and conceal his assets in anticipation of federal prosecution. In practice, Fabro-Miske carried out Miske’s wishes and acted at his direction. Fabro-Miske assisted in a fraudulent scheme committed through Miske’s businesses, which involved submitting false filings to the Department of Commerce and Consumer Affairs that permitted the businesses to operate under fraudulently obtained and maintained licenses. Miske Enterprise members then falsely represented to customers that Miske’s businesses were properly licensed. Between 2017 and 2020, the businesses generated millions of dollars in income annually. As the head of Miske’s businesses, Fabro-Miske was also responsible for the proper and safe application of pesticides and other chemicals at customers’ homes. Information provided to the Court, however, showed that fumigations were regularly conducted without proper supervision or chemicals. Chief Judge Watson stated that Fabro-Miske’s work at Miske’s businesses “funded any number of crimes that we heard months and months of testimony” about in Miske’s trial, and her assistance “allowed Mr. Miske to run rampant in this community.”

Finally, the Court determined that Fabro-Miske was also responsible for participating in a conspiracy with other Miske Enterprise members to kidnap and murder 21-year-old Johnathan Fraser. According to information provided to the Court, Caleb Miske – Miske’s son and Fabro-Miske’s husband – and Fraser were driving together when the two were involved in a car crash in November 2015. Caleb Miske ultimately passed away from his injuries, and Miske blamed Fraser for his son’s death and enlisted several Miske Enterprise members to assist in his plan to murder Fraser. As part of that plan, Miske directed Fabro-Miske to rekindle her friendship with Fraser and his girlfriend and to lure them into living with her at an apartment paid for by Miske. On July 30, 2016, Fabro-Miske took Fraser’s girlfriend on a “spa day” paid for by Miske, ensuring that Fraser would be isolated when he was kidnapped. Fraser was never seen again after that day. Due to Miske’s death in December 2024, Chief Judge Watson explained that “the person most involved in Mr. Fraser’s demise will not ever be sentenced by this Court.” While Chief Judge Watson found that Fabro-Miske did not “directly and personally kill” Fraser and determined her to be a minimal participant in the kidnapping and murder conspiracy, he noted that there was “no doubt” that her actions led to Fraser’s murder and that the circumstances painted a “strong and clear picture” of a conspiracy to commit kidnapping murder in aid of racketeering.

Fabro-Miske was charged alongside twelve other defendants, all of whom pled guilty except for Miske, who proceeded to trial and was found guilty of racketeering conspiracy, murder, and 11 other felony charges on July 18, 2024. Seven other members and associates of the Miske Enterprise pled guilty to various offenses in related cases.

“Delia Fabro-Miske was an integral member of the Miske Enterprise, which terrorized, exploited, and defrauded our community for decades. She participated in Miske’s bank frauds, social security fraud, falsification of fumigation records, and the concealment of Miske’s illegally obtained assets, and was a vital cog in the plot to murder of Johnathan Fraser. Fabro-Miske’s sentence yesterday demonstrates that those who occupy even the lower rungs of Hawaii’s criminal enterprises will pay a steep price when they face justice in federal court,” said Acting U.S. Attorney Ken Sorenson. “The dismantling of the Miske Enterprise represents one of the most significant law enforcement efforts in the history of Hawaii law enforcement, and it would not have been possible without the tremendous and dedicated work of our partners at the Honolulu Division of the Federal Bureau of Investigation, Internal Revenue Service, Homeland Security Investigations, and Environmental Protection Agency, among many others.”

“Ms. Fabro-Miske was a key member in the Miske Enterprise fraud schemes, actively participating in defrauding the government and taxpayers,” said FBI Honolulu Special Agent in Charge David Porter. “This sentencing reflects years of collaboration between FBI Honolulu and our law enforcement partners. The FBI remains steadfast in its commitment to dismantle violent criminal enterprises, hold their members accountable, and pursue justice for victims.”

“Our investigators follow the money because criminal organizations profit at the expense of public safety,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Ms. Fabro-Miske’s racketeering conviction is a reminder that, in the end, crime really doesn’t pay.”

“The sentencing of Ms. Fabro-Miske underscores HSI’s commitment to disrupting and dismantling criminal organizations in Hawaii,” said HSI Special Agent in Charge Lucy Cabral-DeArmas. “HSI will continue to hold accountable those who significantly harm our communities by breaking federal laws. By bringing justice to the Miske Enterprise, HSI sends the message that we will not tolerate any violent activity on our islands.”

“By falsifying documents, defendant obstructed EPA and the state’s criminal investigation of a pesticide applicator that illegally applied restricted use pesticides,” said Benjamin Carr, Special Agent in Charge for the Environmental Protection Agency’s Criminal Investigation Division in Hawaii. “Yesterday’s sentencing reflects the seriousness of defendant’s fraudulent conduct and the importance of complying with pesticide reporting requirements so EPA and Hawaii Department of Agriculture can keep our communities safe.”

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

This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Criminal Investigation Division of the Environmental Protection Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Honolulu Police Department, the Drug Enforcement Administration, the Coast Guard Investigative Service, the United States Marshals Service Fugitive Task Force, the Cybercrime Lab of the Department of Justice Criminal Division Computer Crime and Intellectual Property Section, the Hawaii Criminal Justice Data Center, the Honolulu Fire Department, the Hawaii National Guard, 93rd Civil Support Team, the Office of Investigations–Office of the Inspector General for the Social Security Administration, and the Department of Justice Office of the Inspector General.

Assistant U.S. Attorneys Mark Inciong, Michael Nammar, KeAupuni Akina, and Aislinn Affinito prosecuted the case.

MIL Security OSI –

April 22, 2025

MIL-OSI: Republic of Gamers Announces Next-Gen RTX 50 Series Laptop Lineup – Now Available and Shipping in Canada

Source: GlobeNewswire (MIL-OSI)

TORONTO, April 21, 2025 (GLOBE NEWSWIRE) — ASUS Republic of Gamers (ROG) today announced that it has begun shipping their much-anticipated NVIDIA^® GeForce RTX^™ Series equipped line-up of laptops after initial unveil at CES 2025 subsequent pre-order on February 25, 2025. ASUS ROG’s line up of GeForce RTX^™ Series Laptop GPUs include: ROG Strix SCAR 16 & 18, ROG Strix G16, and ROG Zephyrus G14 & G16, on retailers including Best Buy, Memory Express, Canada Computers and more. Featuring the latest cutting-edge silicon from Intel and NVIDIA, our portable line up is designed to deliver the power and performance that gamers can expect without compromise.

ROG Strix SCAR 16 & SCAR 18: Unleashing Ultimate Power & Precision

At the core of our 2025 lineup, the ROG Strix SCAR 16 & ROG Strix SCAR 18 pack serious power with an Intel^® Core^™ Ultra 9 275HX processors and up to a NVIDIA^® GeForce RTX^™ 5090 Laptop GPUs. Featuring a MUX Switch with NVIDIA Advanced Optimus, they deliver seamless performance for AAA gaming, demanding apps, and multitasking.

With up to 64GB DDR5 RAM and 4TB PCIe Gen4 SSD storage, the SCAR Series offers blazing speed and smooth multitasking. The upgrade-friendly design makes memory and storage swaps easy. A standout AniMe Vision array and full-surround Aura RGB lighting add a bold, customizable aesthetic.

The ROG Nebula HDR Display on both models features a stunning 2.5K mini-LED panel with 2,000+ dimming zones, 240Hz refresh rate, 16:10 aspect ratio, and 100% DCI-P3 color—delivering ultra-vivid, responsive visuals with 1200 nits peak brightness and enhanced contrast.

ROG Strix G16: Empowering Every Gamer

Built to unite squads and elevate gameplay, the ROG Strix G16 delivers fast AAA gaming and smooth content creation with the Intel^® Core^™ Ultra 9 Processor 275HX and up to NVIDIA^® GeForce RTX^™ 5080 Series Laptop GPUs. Up to 32GB of DDR5 RAM ensures seamless multitasking, while advanced cooling—featuring Tri-Fan Technology and full-surround vents—keeps performance at its peak. Dual PCIe Gen 4.0 SSD slots (with Gen 5 support on Intel models) enable easy upgrades, and customizable hotkeys give gamers the edge they need. 

ROG Zephyrus G14 & G16: Ultra-Portable Gaming at its Best

The ROG Zephyrus G14 and G16 are top picks for gamers and creators who need portability without compromising power. Built from CNC-milled aluminum, they offer a lightweight yet durable design. The G16 is equipped with an Intel^® Core^™ Ultra 9 285H, up to 64GB of blazing-fast LPDDR5X 7467 memory, and up to 2TB of PCIe^® 4.0 NVMe^™ M.2 SSD storage. The G14 features up to an AMD Ryzen^™ AI 9 HX 370, 32GB of LPDDR5X 8000 memory, and a 1TB PCIe^® 4.0 NVMe^™ M.2 SSD. With GPU options up to an NVIDIA^® GeForce RTX^™ 5090 on the G16 and up to an RTX^™ 5080 on the G14, both models deliver top-tier performance for demanding gaming, creative workloads, and seamless multitasking.

To keep things cool, both models use advanced thermal solutions with 2nd Gen Arc Flow Fans and either vapor chambers or heat pipes, depending on the spec. At just 3.46 lbs (G14) and 4.30 lbs (G16), and under 1.6 cm thin, they’re made for mobility. With bold Slash Lighting and a sleek Platinum White finish, the Zephyrus series makes a statement in both form and function.

AVAILABILITY AND PRICING

Pre-orders for our NVIDIA GeForce RTX 50 series-equipped laptops placed earlier on February have begun shipping starting with ROG Zephyrus G16 laptops. Availability at retailers, including Best Buy, Memory Express, Canada Computers, and selected retailers will continue to roll out throughout April and May. For specific release dates and availability, please reach out to your ASUS representative.

SPECIFICATIONS

ROG Strix SCAR 18

Config Model Name	G835LX-XS99-CA	G835LX-XS97	G835LW-BS97-CB	G835LW-XS97	G835LR-XS96
Marketing Name	ROG Strix Scar 18 (2025)
Operating System	Windows 11 Pro
Color	Off Black
Weight	3.30 Kg (7.28 lbs)
Dimensions	39.9 x 29.8 x 2.35 ~ 3.20 cm (15.71″ x 11.73″ x 0.93″ ~ 1.26″)
Display	18″, ROG Nebula HDR, Mini LED, 240Hz, 2560×1600, 500 nits (SDR), 1200 nits (HDR), 100% DCI-P3, Pantone Validated, G-Sync, Dolby Vision HDR, 1200:1 contrast ratio
Processor	Intel Core Ultra 9 Processor 275HX 2.7 GHz (36MB Cache, up to 5.4 GHz, 24 cores, 24 Threads); Intel AI Boost NPU up to 13TOPS
Graphics	NVIDIA GeForce RTX 5090 Laptop GPU 24GB GDDR7		NVIDIA GeForce RTX 5080 Laptop GPU 16GB GDDR7		NVIDIA GeForce RTX 5070 Ti Laptop GPU 12GB GDDR7
Memory	64 GB DDR5 (2 x 32 GB SO-DIMM)	32 GB DDR5 (2 x 16 GB SO-DIMM)	64 GB DDR5 (2 x 32 GB SO-DIMM)	32 GB DDR5 (2 x 16 GB SO-DIMM)
Storage	2TB + 2TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	2TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	1TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	2TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	1TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)
Webcam	1080p FHD IR Camera for Windows Hello
Wi-Fi	Wi-Fi 7 + Bluetooth 5.4
IO Ports	1 x 2.5G Lan Jack 2 x Thunderbolt 5 (PD, DP, G-Sync support) 3 x USB 3.2 Gen 2 Type-A 1 x HDMI 2.1 FRL 1 x 3.5 mm Audio Combo Jack
Battery	90 Whr
AC Adapter	Rectangle Conn, 380W AC Adapter, Output: 20V DC, 19A, 380W, Input: 100-240V AC, 50/60Hz universal
MSRP	C$6,999	C$6,499	C$5,299	C$5,299	C$4,499
Where to buy link	Best Buy Canada Computers Memory Express ASUS	Canada Computers Memory Express ASUS	Best Buy ASUS	Best Buy Canada Computers Memory Express ASUS	Best Buy Canada Computers ASUS

ROG Strix SCAR 16

Config Model Name	G635LX-XS99-CA	G635LX-XS97	G635LW-XS97	G635LR-XS96
Marketing Name	ROG Strix Scar 16 (2025)
Operating System	Windows 11 Pro
Color	Off Black
Weight	2.80 Kg (6.17 lbs)
Dimensions	35.4 x 26.8 x 2.28 ~ 3.08 cm (13.94″ x 10.55″ x 0.90″ ~ 1.21″)
Display	16″ ROG Nebula HDR, Mini LED, 240Hz, 2560×1600, 500 nits (SDR), 1200 nits (HDR), 100% DCI-P3, Pantone Validated, G-Sync, Dolby Vision HDR, 1200:1 contrast ratio
Processor	Intel Core Ultra 9 Processor 275HX 2.7 GHz (36MB Cache, up to 5.4 GHz, 24 cores, 24 Threads); Intel AI Boost NPU up to 13TOPS
Graphics	NVIDIA GeForce RTX 5090 Laptop GPU 24GB GDDR7		NVIDIA GeForce RTX 5080 Laptop GPU 16GB GDDR7	NVIDIA GeForce RTX 5070 Ti Laptop GPU 12GB GDDR7
Memory	64 GB DDR5 (2 x 32 GB SO-DIMM)	32 GB DDR5 (2 x 16 GB SO-DIMM)
Storage	2TB + 2TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	2TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	2TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)	1TB PCIe 4.0 NVMe M.2 Performance SSD (RAID 0) (2x M.2 PCIe slots total)
Webcam	1080p FHD IR Camera for Windows Hello
Wi-Fi	Wi-Fi 7 + Bluetooth 5.4
IO Ports	1 x 2.5G Lan Jack 2 x Thunderbolt 5 (PD, DP, G-Sync support) 3 x USB 3.2 Gen 2 Type-A 1 x HDMI 2.1 FRL 1 x 3.5 mm Audio Combo Jack
Battery	90 Whr
AC Adapter	Rectangle Conn, 380W AC Adapter, Output: 20V DC, 19A, 380W, Input: 100-240V AC, 50/60Hz universal
MSRP	C$6,699	C$5,999	C$4,999	C$4,199
Where to buy link	Best Buy Canada Computers ASUS	Best Buy Canada Computers Memory Express ASUS	Canada Computers Memory Express ASUS	Best Buy Canada Computers ASUS

ROG Strix G16 (2025)

Config Model Name	G615LW-XS96-CA		G615LR-DS96-CA
Marketing Name	ROG Strix G16 (2025)
Operating System	Windows 11 Pro	Windows 11 Home
Color	Off Black
Weight	2.65 Kg (5.84 lbs)
Dimensions	35.4 x 26.8 x 2.28 ~ 3.08 cm (13.94″ x 10.55″ x 0.90″ ~ 1.21″)
Display	16-inch, 2.5K (2560 x 1600, WQXGA), 240HZ, 3ms, G-SYNC, 16:10 aspect ratio, IPS, anti-glare display, 100% DCI-P3, Pantone Validated, Dolby Vision HDR
Processor	Intel Core Ultra 9 Processor 275HX 2.7 GHz (36MB Cache, up to 5.4 GHz, 24 cores, 24 Threads); Intel AI Boost NPU up to 13TOPS
Graphics	NVIDIA GeForce RTX 5080 Laptop GPU 16GB GDDR7		NVIDIA GeForce RTX 5070 Ti Laptop GPU 12GB GDDR7
Memory	32 GB DDR5 (2 x 16 GB SO-DIMM)
Storage	1TB PCIe 4.0 NVMe M.2 Performance SSD (2x M.2 PCIe slots total)
Webcam	1080p FHD IR Webcam
Wi-Fi	Wi-Fi 7 + Bluetooth 5.4
IO Ports	1 x 2.5G Lan Jack 2 x Thunderbolt 5 (PD, DP, G-Sync support) 3 x USB 3.2 Gen 2 Type-A 1 x HDMI 2.1 FRL 1 x 3.5 mm Audio Combo Jack
Battery	90 Whr
AC Adapter	Rectangle Conn, Up to 380W AC Adapter, Output: 20V DC, 19A, 380W, Input: 100-240V AC, 50/60Hz universal
MSRP	C$4,299		C$3,599
Where to buy link	Best Buy Canada Computers Memory Express ASUS		Canada Computers Memory Express ASUS

ROG Zephyrus G14 (2025)

Config Model Name	GA403WW-RS96-CA	GA403WR-DS96-CA
Marketing Name	ROG Zephyrus G14 (2025)
Operating System	Windows 11 Pro	Windows 11 Home
Color	Platinum White
Weight	1.57 Kg (3.46 lbs)
Dimensions	31.1 x 22.0 x 1.59 ~ 1.83 cm (12.24″ x 8.66″ x 0.63″ ~ 0.72″)
Display	14″, ROG Nebula, OLED, 120Hz, 2880 x 1800, 500 nits, 100% DCI-P3, Pantone Validated, G-Sync, Dolby Vision HDR
Processor	AMD Ryzen^™ AI 9 HX 370 Processor 2.0GHz (36MB Cache, up to 5.1GHz, 12 cores, 24 Threads); AMD XDNA^™ NPU up to 50TOPS
Graphics	NVIDIA GeForce RTX 5080 Laptop GPU 16GB GDDR7	NVIDIA GeForce RTX 5070 Ti Laptop GPU 12GB GDDR7
Memory	32 GB LPDDR5X 8000 (on board)	32 GB LPDDR5X 7500 (on board)
Storage	1TB PCIe 4.0 SSD included (1 x SSD PCIE 4.0)
Webcam	1080p FHD IR Webcam
Wi-Fi	Wi-Fi 7 + Bluetooth 5.4
IO Ports	1 x USB 4.0 (PD, DP support) 1 x USB 3.2 Gen Type-C (PD, DP, G-Sync support) 2 x USB 3.2 Gen 2 Type-A 1 x HDMI 2.1 FRL 1 x 3.5 Audio Combo Jack 1x card reader (microSD) (UHS-II)
Battery	73 Whr
AC Adapter	Rectangle Conn, 200W AC Adapter, Output: 20V DC, 12A, 240W, Input: 100~240C AC 50/60Hz universal
MSRP	C$4,299	C$3,699
Where to buy link	ASUS Canada Computers	Best Buy Canada Computers Memory Express ASUS

ROG Zephyrus G16

Config Model Name	GU605CX-XS98-CA	GU605CW-XS98-CA	GU605CR-XS98-CA
Marketing Name	ROG Zephyrus G16 (2025)
Operating System	Windows 11 Pro
Color	Platinum White
Weight	1.95 Kg (4.30 lbs)
Dimensions	35.4 x 24.6 x 1.49 ~ 1.74 cm (13.94″ x 9.69″ x 0.59″ ~ 0.69″)
Display	16″, ROG Nebula, OLED, 240Hz, 2560×1600, 500 nits, 100% DCI-P3, Pantone Validated, G-Sync, Dolby Vision HDR
Processor	Intel Core Ultra 9 Processor 285H 2.9 GHz (24MB Cache, up to 5.4 GHz, 16 cores, 16 Threads); Intel AI Boost NPU up to 13TOPS
Graphics	NVIDIA GeForce RTX 5090 Laptop GPU 24GB GDDR7	NVIDIA GeForce RTX 5080 Laptop GPU 16GB GDDR7	NVIDIA GeForce RTX 5070 Ti Laptop GPU 12GB GDDR7
Memory	64 GB LPDDR5X 7467 (on board)
Storage	2TB PCIe 4.0 SSD included (2 x SSD PCIE 4.0)
Webcam	1080p FHD IR Webcam
Wi-Fi	Wi-Fi 7 + Bluetooth 5.4
IO Ports	1 x Thunderbolt 4 (PD, DP support) 1 x USB 3.2 Gen Type-C (PD, DP, G-Sync support) 2 x USB 3.2 Gen 2 Type-A 1 x HDMI 2.1 FRL 1 x 3.5 Audio Combo Jack 1x card reader (SD) (UHS-II, 312MB/s
Battery	90 Whr
AC Adapter	Rectangle Conn, 240W AC Adapter, Output: 20V DC, 12A, 240W, Input: 100~240C AC 50/60Hz universal
MSRP	C$5,999	C$5,299	C$4,799
Where to buy link	Best Buy Canada Computers Memory Express ASUS	Best Buy Canada Computers Memory Express ASUS	Best Buy Canada Computers ASUS

NOTES TO EDITORS

Where to buy links:

2025 ROG Gaming Laptops: https://rog.asus.com/content/2025-rog-gaming-laptops/

ROG Strix SCAR 18 Product Page: https://rog.asus.com/ca-en/laptops/rog-strix/rog-strix-scar-18-2025/

ROG Strix SCAR 16 Product Page: https://rog.asus.com/ca-en/laptops/rog-strix/rog-strix-scar-16-2025/

ROG Strix G18 Product Page: https://rog.asus.com/ca-en/laptops/rog-strix/rog-strix-g18-2025/

ROG Strix G16 Product Page: https://rog.asus.com/ca-en/laptops/rog-strix/rog-strix-g16-2025/

ROG Zephyrus G14 Product Page: https://rog.asus.com/ca-en/laptops/rog-zephyrus/rog-zephyrus-g14-2025/

ROG Zephyrus G16 Product Page: https://rog.asus.com/ca-en/laptops/rog-zephyrus/rog-zephyrus-g16-2025-gu605/

ROG Flow Z13 Product Page: https://rog.asus.com/ca-en/laptops/rog-flow/rog-flow-z13-2025/

ROG Facebook: https://www.facebook.com/asusrog

ROG X (Twitter): https://www.x.com/asus_rog

ASUS Pressroom: http://press.asus.com

ASUS Global Facebook: https://www.facebook.com/asus

ASUS Global Twitter: https://www.x.com/asus

About ROG

Republic of Gamers (ROG) is an ASUS sub-brand dedicated to creating the world’s best gaming hardware and software. Formed in 2006, ROG offers a complete line of innovative products known for performance and quality, including motherboards, graphics cards, system components, laptops, desktops, monitors, smartphones, audio equipment, routers, peripherals and accessories. ROG participates in and sponsors major international gaming events. ROG gear has been used to set hundreds of overclocking records and it continues to be the preferred choice of gamers and enthusiasts around the world. To become one of those who dare, learn more about ROG at http://rog.asus.com.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9d97476b-b354-4048-936e-d919b5e64652

The MIL Network –

April 22, 2025

Category: Intelligence Agencies

Sample Images

Background

About transnational repression

Impact

Transnational Repression Operation

Reporting transnational repression