Category: Intelligence Agencies

  • MIL-OSI: The Keg Royalties Income Fund Announces Fourth Quarter 2024 and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Not for distribution to U.S. News wire services or dissemination in the U.S.

    VANCOUVER, British Columbia, March 06, 2025 (GLOBE NEWSWIRE) — The Keg Royalties Income Fund (the “Fund”) (TSX: KEG.UN) is pleased to announce its financial results for the three months ended December 31, 2024 (the “quarter”) and the twelve months ended December 31, 2024 (“YTD”).

    HIGHLIGHTS

    • Royalty Pool Sales(1) down 7.1% to $188.2M for the quarter and down 3.0% to $719.5M YTD
    • Keg Restaurants Ltd. (“KRL”) Average Sales per Operating Week(1) up 0.4% to $140,000 for the quarter and down 0.8% to $132,000 YTD
    • KRL Same Store Sales(1) up 2.6% for the quarter and down 0.7% YTD
    • Distributable Cash(1) up 9.9% to $0.262/Fund unit for the quarter and up 7.7% to $1.248/Fund unit YTD
    • Special cash distribution of $0.04/Fund unit declared on December 23, 2024, and was and paid on January 31, 2025
    • Payout Ratio(2) was 123.8% for the quarter and 94.2% YTD        

    Royalty Pool Sales reported by the 105 Keg restaurants in the Royalty Pool were $188,167,000 for the fourth quarter of 2024, a decrease of $14,350,000 or 7.1% from the comparable quarter of the prior year. The decrease in Royalty Pool Sales during the fourth quarter of 2024 was primarily due to the extra week of sales reported by KRL in the fourth quarter of 2023. Year-to-date, Royalty Pool Sales decreased by $22,157,000, or 3.0% to $719,541,000 due to the combination of the extra week of sales reported by KRL in the year ended December 31, 2023, and the slight decrease in Same Store Sales of 0.7% for the comparable 52-week periods.

    Royalty income decreased by $574,000 or 7.1% from $8,101,000 in the three months ended December 31, 2023 to $7,527,000 in the three months ended December 31, 2024. For the twelve months of 2024, royalty income decreased by $886,000 or 3.0% from $29,668,000 for the twelve months ended December 31, 2023 to $28,782,000 for the twelve months ended December 31, 2024.

    Distributable Cash available to pay distributions to public unitholders increased by $268,000 from $2,703,000 ($0.238/Fund unit) to $2,971,000 ($0.262/Fund unit) for the quarter, and increased by $1,016,000 from $13,154,000 ($1.159/Fund unit) to $14,170,000 ($1.248/Fund unit) year-to-date. During the fourth quarter of 2024, distributions of $3,677,000 ($0.324/Fund unit) were declared to Fund unitholders, compared to $4,130,000 ($0.364/Fund unit) in the fourth quarter of 2023. During 2024, distributions of $13,343,000 ($1.175/Fund unit) were declared to Fund unitholders, compared to $13,797,000 ($1.215/Fund unit) during the 2023 fiscal year. The decrease of $0.04/Fund unit in distributions declared to Fund unitholders for both the three and twelve month comparable periods, is entirely due to the difference between the $0.08/Fund unit special distribution declared in December of 2023, compared to the $0.04/Fund unit special distribution declared in December of 2024, as a result of KRL’s 53rd week of operation in 2023.

    In any reporting period, the Fund’s Distributable Cash is affected, both positively and negatively, by any changes in non-cash Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities balances recognized in that reporting period. The increase in the Fund’s Distributable Cash in the fourth quarter of 2024, was primarily attributable to the positive effects of changes in non-cash operating Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities balances during the fourth quarter of 2024. The increase in the Fund’s Distributable Cash in the twelve months of 2024, was primarily attributable to the positive effects of changes in non-cash operating Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities balances during the twelve months of 2024, as the incremental operating cash flow associated with KRL’s 53rd week of operation in the 2023 fiscal year was not received by the Fund until January 2024. The Fund’s year ended December 31, 2024 included this extra week of operating cash flow, thereby increasing Distributable Cash and decreasing the year-to-date Payout Ratio.

    The Payout Ratio was 123.8% for the fourth quarter of 2024 and 94.2% for the year.

    The Fund remains financially well positioned with cash on hand of $2,065,000 and a positive Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities balance of $2,627,000 as at December 31, 2024.

    (1) This is a non-IFRS supplementary financial measure. Please refer to the “Non-GAAP and other financial measures disclosure (NI 52-112)” section of this press release.
    (2) This is a non-IFRS ratio. Please refer to the “Non-GAAP and other financial measures disclosure (NI 52-112)” section of this press release.

    “We are very pleased with the financial results of the Fund in the fourth quarter of 2024, despite the continued challenges facing the full-service restaurant category” said Kip Woodward, Chairman of the Fund. “Management continues their solid focus on operating efficiencies and delivering the best guest dining experience during these times of softening economic conditions. We are heartened by our long-term guest loyalty which we always endeavor to earn.”

    “We are pleased with KRL’s sales performance during the fourth quarter of 2024. Same store sales increased 2.6% versus the comparable quarter of 2023. Our guests continue to trust that they will receive a great experience each time they visit one of our locations” said Nick Dean, President of KRL. “Throughout 2024, management focused on empowering our exceptionally talented team of Keggers to deliver our promise of superior hospitality and product quality for our guests. With this strategy firmly in place, we expect guest demand for The Keg will continue to improve well into 2025”, he concluded.

    NON-GAAP AND OTHER FINANCIAL MEASURES DISCLOSURE (“NI 52-112”)

    NI 52-112 prescribes disclosure requirements that apply to certain Non-IFRS measures known as “specified financial measures”. This press release makes reference to certain non-IFRS measures which provides important information regarding the Fund’s financial performance and ability to pay distributions to unitholders. By considering these non-IFRS measures in combination with IFRS measures, the Fund believes that readers are provided with additional and more useful information about the Fund’s financial performance as opposed to considering IFRS measures alone. The terms “System Sales”, “Royalty Pool”, “Royalty Pool Sales”, “Same Store Sales”, “Distributable Cash Before SIFT Tax”, “Distributable Cash”, “Payout Ratio”, “Operating Weeks”, “Average Sales per Operating Week” and “Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities” are non-IFRS measures and non-IFRS ratios. These non-IFRS measures reported by the Fund do not have standardized meanings as prescribed by IFRS, and the Fund’s method of calculating these measures may differ and may not be comparable to similar measures reported by other issuers.

    “System Sales” is a non-IFRS supplementary financial measure representing the gross sales of all corporate restaurants owned by KRL, and the gross sales reported to KRL by franchise restaurants without independent audit, in any period. The total System Sales of KRL are of interest to readers as it best reflects KRL’s overall sales performance.

    Royalty Pool” is a non-IFRS supplementary financial measure representing a specific pool of Keg restaurants for which System Sales is calculated, obligating KRL to make monthly royalty payments to the Partnership equal to 4% of these gross sales.

    “Royalty Pool Sales” is a non-IFRS supplementary financial measure representing the total gross sales reported by Keg restaurants included in a specified Royalty Pool, for which the Fund receives a royalty of 4% on these reported gross sales in any period.

    “Same Store Sales” is a non-IFRS supplementary financial measure representing the overall increase or decrease in gross sales from a group of Keg restaurants (those restaurants that operated during the entire period of both the current and prior years), compared to gross sales for the same group of restaurants for the same period of the prior year.

    Distributable Cash Before SIFT Tax” is a non-IFRS supplementary financial measure and is defined as the periodic cash flows from operating activities as reported in the IFRS consolidated financial statements, including the effects of changes in non-cash Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities, plus the Specified Investment Flow-through Trust tax (“SIFT” tax) paid (including current year instalments), less interest and financing fees paid on the term loan, less the Partnership distributions attributable to KRL through its ownership of Exchangeable units.

    Distributable Cash” is a non-IFRS supplementary financial measure and is defined as the amount of cash available for distribution to the Fund’s public unitholders and is calculated as Distributable Cash Before SIFT Tax, less current year SIFT tax expense. Distributable cash is a non-IFRS financial measure that does not have a standardized meaning prescribed by IFRS, and therefore may not be comparable to similar measures presented by other issuers. However, the Fund believes that Distributable Cash, both before and after SIFT tax, provides useful information regarding the amount of cash available for distribution to the Fund’s public unitholders.

    Payout Ratio” is a non-IFRS ratio and is computed as the ratio of aggregate cash distributions paid during the period plus any special distributions declared or paid during the same period (numerator) to the aggregate Distributable Cash of the period (denominator).

    “Operating Weeks” is a non-IFRS supplementary financial measure representing the number of weeks a restaurant is open for in-store dining, without significant capacity restrictions, during a respective period.

    Average Sales per Operating Week” is a non-IFRS supplementary financial measure and is defined as the sales generated by an average restaurant during those operating weeks when restaurants were fully open for in-store dining, during a respective period. This metric is calculated by dividing total System Sales for any financial period by the total Operating Weeks open during the same financial period.

    “Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities” is a non-IFRS supplementary financial measure and is defined as the Fund’s current assets less current liabilities before Class C and Exchangeable Partnership units. The Fund believes this metric provides useful information to readers as Working Capital Before Classification of Class C and Exchangeable Partnership Units as Current Liabilities represents the Fund’s current working capital amounts expected to be settled for cash within the next twelve months.

    FINANCIAL HIGHLIGHTS

        Three months ended   Twelve months ended
          December 31,       December 31,       December 31,       December 31,  
    ($000’s expect per unit amounts)     2024       2023       2024       2023  
                     
    Restaurants in the Royalty Pool     105       107       105       107  
    Royalty Pool Sales   $ 188,167     $ 202,517     $ 719,541     $ 741,698  
    Royalty income (1)   $ 7,527     $ 8,101     $ 28,782     $ 29,668  
    Interest income (2)     1,091       1,106       4,361       4,383  
    Total income   $ 8,618     $ 9,207     $ 33,143     $ 34,051  
    Administrative expenses (3)     (122 )     (106 )     (468 )     (480 )
    Interest and financing expenses (4)     (224 )     (268 )     (1,002 )     (1,028 )
    Operating income   $ 8,272     $ 8,833     $ 31,673     $ 32,543  
    Distributions to KRL (5)     (3,398 )     (3,572 )     (13,134 )     (13,414 )
    Profit before fair value gain (loss) and income taxes   $ 4,874     $ 5,261     $ 18,539     $ 19,129  
    Fair value gain (loss) (6)     1,526       (2,616 )     (5,123 )     11,119  
    Income tax recovery (expense) (7)     (1,337 )     (1,439 )     (4,992 )     (5,091 )
    Profit (loss) and comprehensive income (loss)   $ 5,063     $ 1,206     $ 8,424     $ 25,157  
    Distributable Cash Before SIFT Tax   $ 4,287     $ 4,107     $ 19,137     $ 18,260  
    Distributable Cash   $ 2,971     $ 2,703     $ 14,170     $ 13,154  
    Distributions to Fund unitholders (8)   $ 3,677     $ 4,130     $ 13,343     $ 13,797  
    Payout Ratio     123.8 %     152.8 %     94.2 %     104.9 %
                     
    Per Fund unit information (9)                
    Profit before fair value gain (loss) and income taxes   $ 0.429     $ 0.463     $ 1.633     $ 1.685  
    Profit (loss) and comprehensive income (loss)   $ 0.446     $ 0.106     $ 0.742     $ 2.216  
    Distributable Cash Before SIFT Tax   $ 0.378     $ 0.362     $ 1.686     $ 1.608  
    Distributable Cash   $ 0.262     $ 0.238     $ 1.248     $ 1.159  
    Distributions to Fund unitholders (8)   $ 0.324     $ 0.364     $ 1.175     $ 1.215  
                     
    Notes:
    (1)   The Fund, indirectly through The Keg Rights Limited Partnership (the “Partnership”), earns royalty income equal to 4% of gross sales of Keg restaurants in the Royalty Pool.
    (2)   The Fund directly earns interest income on the $57.0 million loan to KRL (the “Keg Loan”), with interest income accruing at 7.5% per annum, payable monthly.
    (3)   The Fund, indirectly through the Partnership, incurs administrative expenses and interest on the operating line of credit, to the extent utilized.
    (4)   The Fund, indirectly through The Keg Holdings Trust (“KHT”), incurs interest expense on the $14.0 million term loan and amortization of deferred financing charges.
    (5)   Represents the distributions of the Partnership attributable to KRL during the respective periods on the Class A, entitled Class B, and Class D Partnership units (“Exchangeable units”) and Class C Partnership units held by KRL. The Exchangeable units are exchangeable into Fund units on a one-for-one basis. These distributions are presented as interest expense in the financial statements.
    (6)   Fair value gain (loss) is the non-cash decrease or increase in the market value of the Exchangeable units held by KRL during the respective period. Exchangeable units are classified as a financial liability under IFRS. The Fund is required to determine the fair value of that liability at the end of each reporting period and adjust for any increase or decrease, taking into consideration the sale of any Exchangeable units and Additional Entitlements during the same period.
    (7)   Income taxes include the SIFT tax expense, and either a non-cash deferred tax expense or deferred tax recovery. The deferred tax expense or recovery primarily results from differences in income recognition between the Fund’s accounting methods and enacted tax laws. It is also partially due to temporary differences between accounting and tax bases of the Keg Rights owned by the Partnership.
    (8)   Distributions to Fund unitholders include all regular monthly cash distributions paid to Fund unitholders during a period and any special distributions, either declared or paid, to Fund unitholders in the same period.
    (9)   All per unit amounts are calculated based on the weighted average number of Fund units outstanding, which are those units held by public unitholders during the respective period. The weighted average number of Fund units outstanding for the three and twelve months ended December 31, 2024 were 11,353,500 (three and twelve months ended December 31, 2023 – 11,353,500).
         

    The Fund (TSX: KEG.UN) is a limited purpose, open-ended trust established under the laws of the Province of Ontario that, through The Keg Rights Limited Partnership, owns certain trademarks and other related intellectual property used by Keg Restaurants Ltd. (“KRL”). In exchange for use of those trademarks, KRL pays the Fund a royalty of 4% of gross sales of Keg restaurants included in the Royalty Pool.

    With approximately 10,000 employees, over 100 restaurants and annual System Sales exceeding $700 million, Vancouver-based KRL is the leading operator and franchisor of steakhouse restaurants in Canada and has a substantial presence in select regional markets in the United States. KRL continues to operate The Keg restaurant system and expand that system through the addition of both corporate and franchised Keg steakhouses. KRL has been named the number one restaurant company to work for in Canada in the latest edition of Forbes “Canada’s Best Employers 2025” survey.

    This press release may contain certain “forward looking” statements reflecting The Keg Royalties Income Fund’s current expectations in the casual dining segment of the restaurant food industry. Investors are cautioned that all forward looking statements involve risks and uncertainties, including those relating to the Keg’s ability to continue to realize historical same store sales growth, changes in market and existing competition, new competitive developments, and potential downturns in economic conditions generally. Additional information on these and other potential factors that could affect the Fund’s financial results are detailed in documents filed from time to time with the provincial securities commissions in Canada.

    This press release shall not constitute an offer to sell or the solicitation of an offer to buy, which may be made only by means of the prospectus, nor shall there be any sale of the Fund units in any state, province or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state, province or jurisdiction. The Keg Royalties Income Fund units have not been, and will not be registered under the U.S. Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an application for exemption from the registration requirement under U.S. securities laws.

    The Trustees of the Fund have approved the contents of this press release.

    The MIL Network

  • MIL-OSI USA: Budd Hosts Bipartisan Meeting with Keith Siegel and Recently Released Hostages

    US Senate News:

    Source: United States Senator Ted Budd (R-North Carolina)
    Washington, D.C. — A day after President Donald Trump met with eight hostages released from Gaza, U.S. Senator Ted Budd (R-NC) met privately in his office with North Carolina native Keith Siegel and his wife, Aviva. Following their private meeting, Senator Budd hosted a bipartisan group of Senators who met with recently released hostages and family members who are still awaiting the return of their loved ones.
    Joining Budd for the bipartisan meeting were Senators Joni Ernst (R-IA), Richard Blumenthal (D-CT), Thom Tillis (R-NC), and Jackie Rosen (D-NV).
    Former hostages Keith and Aviva Siegel, Iair Horn, Doron Steinbrecher, and Naama Levy as well as Moshe Lavi, the brother-in-law of Omri Miran, who is still being held in Gaza, told their stories and advocated for the release of the remaining 59 hostages.
    In a statement, Senator Budd said:
    “We rejoice in Keith’s return, but we also weep for what he and his fellow hostages endured and for what the 59 remaining hostages and their families are still enduring. For 484 days, Keith’s family, particularly his wife Aviva, his children, siblings, family and friends, worked tirelessly to secure his release.
    “Our work is not over. We must continue pressuring Hamas to release the remaining hostages in Gaza, especially the five Americans. I will continue working alongside my colleagues on a bipartisan basis, with President Trump, and with world leaders until all of the hostages are home and Hamas is destroyed.”
    Click here to download full resolution photos
    Senator Budd has been working for the release of American hostages since October 2023:
    On October 25, 2023, Senator Budd first spoke about the hostage situation in Gaza on the Senate floor, where he announced his intention “to hold all humanitarian aid to Gaza until each and every American hostage is home and is safe.”
    On November 6, 2023, Senator Budd met with Qatari Ambassador Meshal Al Thani in Senator Budd’s Washington, D.C. office. In that meeting, he strongly urged the Qatari government to use their leverage on Hamas leaders currently residing in Doha to immediately release all hostages, and hold those same Hamas leaders accountable once the hostage situation is fully resolved.
    On November 26, 2023, Senator Budd reacted to the release of Keith Siegel’s wife, Aviva, saying, “While we are encouraged by the government of Qatar’s efforts to mediate the release of some of the hostages, we renew our call to their government to exert pressure on Hamas leadership to release each and every hostage immediately and unconditionally.”
    On November 28, 2023, Senator Budd spoke on the Senate floor and called out Qatar for its continued hosting of Hamas terrorist leaders, saying, “We need to tell our friends in Doha loudly and clearly: Qatar is accepting a significant liability with its pro-Hamas policy.”
    On December 13, 2023, Senator Budd sent a holiday message of support to the hostages and their families in a speech on the Senate floor, saying, “I want every one of these family members to know that our country is behind them, we support them, and we are praying for them.”
    On January 10, 2024, Senator Budd returned from a congressional delegation (CODEL) to the Middle East, which included stops in Israel, Egypt, Qatar, and Bahrain. The focus of the delegation’s meetings across the region was on securing the release of hostages.
    On the trip, Senator Budd and his colleagues toured one of the communities devastated by the October 7th massacre by Hamas terrorists. He personally spoke with former hostage Aviva Siegel, and met with top Israeli officials including Prime Minister Benjamin Netanyahu and Mossad Director David Barnea.
    Senator Budd then met with Egyptian President Abdel Fattah El-Sisi and the Prime Minister of Qatar, to whom Senator Budd sent a strong message that Qatar must do more to secure the immediate and safe release of all of the hostages.
    On January 15, 2024, Senators Budd and Joni Ernst (R-IA) published an op-ed marking the 100th day of captivity for the hostages, writing, “As long as Americans remain captive to these barbaric thugs, the latter is the victor. Allowing Americans to suffer under the yoke of terrorists is a win for evil around the world and a boon for Iran’s proxies.”
    On January 25, 2024, Senator Budd spoke on the Senate floor and delivered a sharp message to the government of Qatar: “Our patience has run out. Time is up. Either pressure Hamas leaders to release the hostages now, or expel them from your land. It’s that simple. The United States of America will be watching.”
    On March 7, 2024, Senators Budd and Tillis invited the family of Keith Siegel to be their guests at the president’s State of the Union Address. Keith’s sister Lucy and niece Hanna have accepted the Senators’ invitation.
    On March 15, 2024, Senator Budd joined a joint statement from Senators Ben Cardin (D-MD) and Jim Risch (R-ID), Chairman and Ranking Member of the Senate Foreign Relations Committee, as well as five other Senators stating, “If Hamas refuses reasonable negotiations, there is no reason for Qatar to continue hosting Hamas’ political office or any of its members in Doha.”
    On March 26, 2024, Senator Budd and Senator Ernst issued a joint statement calling on the State of Qatar to immediately expel all members of Hamas’ political office currently residing in Doha.
    On April 9, 2024, Senator Budd introduced the ‘Reviewing Qatar’s Major Non- NATO Ally Status Act’, which would require the Secretary of State to formally certify that Qatar has expelled or agreed to extradite to the United States any individuals bearing responsibility for the terror attack on October 7, 2023. If the Secretary of State cannot make this certification in good faith, then the President is required to immediately terminate the designation of the State of Qatar as a major non-NATO ally.
    On April 10, 2024, Senator Budd attempted to invoke unanimous consent on the Senate floor to pass the ‘Reviewing Qatar’s Major Non- NATO Ally Status Act’, but was blocked. He said, “The time for talking is over, and the time for action is now. If we don’t see action, then Qatar must face consequences. At the end of the day, this bill represents another step towards securing the freedom of our fellow Americans.”
    On May 7, 2024, Senators Budd and Ernst returned from a congressional delegation (CODEL) to the Middle East, which included stops in Israel, Iraq, Syria, and the United Arab Emirates (UAE).
    On the trip, Senators Budd and Ernst received first-hand updates on the state of the hostage negotiations from top U.S. and Israeli officials including Israeli Prime Minister Benjamin Netanyahu. They also hosted the families of American hostages, including the family of North Carolina native, Keith Siegel.
    On July 31, 2024, Senator Budd released a statement after Hamas’s political leader was killed, saying that it “sends a clear and resounding message to terrorists that those who kill and kidnap Americans will ultimately face justice.”
    On September 1, 2024, Senator Budd released a statement condemning the Hamas murder of American hostage Hersh Goldberg-Polin along with five other Israeli hostages, saying, “This is yet another act of cold-blooded barbarism from Hamas terrorists. It must not be excused or downplayed. The U.S. government must leave no stone unturned until all those responsible for Hersh’s kidnapping and murder are brought to justice, and until we bring every American hostage home.”
    On October 7, 2024, Senator Budd disclosed that the Biden administration had ignored a bipartisan request from Senator Budd and 11 other Senators to authorize a reward of up to $25 million for information that brings Hamas leaders to justice.
    On October 17, 2024, Senator Budd released a statement after Israeli Defense Forces killed Yahya Sinwar, the leader of Hamas and the mastermind behind the October 7, 2023 attacks, saying, “[Sinwar] was a terrorist leader who had American blood on his hands. To the remaining Hamas leaders: release the hostages, renounce terrorism, and recognize Israel’s right to exist. There is no future for Hamas or its ideology.”
    On November 8, 2024, Senator Budd joined a letter to the Department of Justice and Department of State requesting an immediate freeze on the assets of Hamas officials living in Qatar, the extradition of several senior Hamas officials currently residing in Qatar, and that Qatar end its hospitality of Hamas’ senior leadership.
    On November 8, 2024, Senator Budd released a statement after the State of Qatar decided to expel the remaining Hamas terrorist leadership from Doha, calling the move, “welcome, but long overdue.”
    On November 22, 2024, Senator Budd, along with Senate Armed Services Committee Ranking Member Roger Wicker and Senator Joni Ernst, released a statement calling on Turkey to extradite the Hamas terrorist leaders who fled there after being expelled from Qatar.
    On December 2, 2024, Senator Budd released a statement after the Israeli Defense Forces confirmed that U.S.-Israeli citizen Omer Neutra was killed by Hamas terrorists during the October 7, 2023 attacks. His body remains in Gaza, saying in-part, “this news is further proof of the true evil of Hamas terrorists. The U.S. government must not relent until all those responsible for Omer’s murder are brought to justice, and until we bring every American hostage home.”
    On February 1, 2025, Senator Budd issued a statement following the release of North Carolina Native Keith Siegel from Gaza.

    MIL OSI USA News

  • MIL-OSI USA: Remarks by President Trump in Joint Address to Congress

    US Senate News:

    Source: The White House
    class=”has-text-align-center”>U.S. Capitol
    Washington, D.C.
    9:19 P.M. EST
    (March 4, 2025)
         THE PRESIDENT:  Thank you.  (Applause.)  Thank you very much.  Thank you very much.  It’s a great honor.  Thank you very much. 
    Speaker Johnson, Vice President Vance, the first lady of the United States — (applause) — members of the United States Congress, thank you very much.  
    And to my fellow citizens, America is back.  (Applause.)
    AUDIENCE:  USA!  USA!  USA! 
    THE PRESIDENT:  Six weeks ago, I stood beneath the dome of this Capitol and proclaimed the dawn of the golden age of America.  From that moment on, it has been nothing but swift and unrelenting action to usher in the greatest and most successful era in the history of our country. 
    We have accomplished more in 43 days than most administrations accomplished in four years or eight years, and we are just getting started.  (Applause.)  Thank you. 
    I return to this chamber tonight to report that America’s momentum is back, our spirit is back, our pride is back, our confidence is back, and the American dream is surging bigger and better than ever before.  (Applause.)  The American dream is unstoppable, and our country is on the verge of a comeback, the likes of which the world has never witnessed and perhaps will never witness again.  There’s never been anything like it.  (Applause.)
    The presidential election of November 5th was a mandate like has not been seen in many decades.  We won all seven swing states, giving us an electoral college victory of 312 votes.  (Applause.)  We won the popular vote —
    REPRESENTATIVE GREEN:  (Inaudible.)
    THE PRESIDENT:  — by big numbers and won counties in our country —
    AUDIENCE:  Booo —
    AUDIENCE:  USA!  USA!  USA!
    REPRESENTATIVE GREEN:  You are — you have no right to cut Medicaid.
    AUDIENCE:  USA!  USA!  USA! 
    THE PRESIDENT:  — and won counties in our country 2,700 to 525 on a map that reads almost completely red for Republican.  (Applause.) 
    Now, for the first time in modern history, more Americans believe that our country is headed in the right direction than the wrong direction.  In fact, it’s an astonishing record: 27-point swing, the most ever.  (Applause.)
    Likewise, small-business optimism saw its single largest one-month gain ever recorded. 
    SPEAKER JOHNSON:  Mr. President —
    THE PRESIDENT:  A 41-point jump.
    (Speaker Johnson strikes the gavel.) 
         SPEAKER JOHNSON:  Members are directed to uphold and maintain decorum in the House and to cease any further disruptions.  That’s your warning.
    REPRESENTATIVE GREEN:  He has no mandate to cut Medicaid.
    SPEAKER JOHNSON:  Members are engaging in willful and continuing breach of decorum, and the chair is prepared to direct the sergeant at arms to restore order to the joint session.  (Applause.)
    Mr. Green, take your seat.  Take your seat, sir. 
    REPRESENTATIVE GREEN:  He has no mandate to cut Medicaid.
    SPEAKER JOHNSON:  Take your seat.
    (Cross-talk.) 
    Finding that members continue to engage in willful and concerted disruption of proper decorum, the chair now directs the sergeant at arms to restore order.  (Applause.)  Remove this gentleman from the chamber.  (Applause.)
    REPRESENTATIVE GREEN:  Shame on all of you.
         (Members of the audience sing “Na Na Hey Hey Kiss Him Goodbye.”)
         (Cross-talk.)
         You have no mandate.
    SPEAKER JOHNSON:  Members are directed to uphold and maintain decorum in the House.
    Mr. President, you can continue.
    THE PRESIDENT:  Thank you.
    Over the past six weeks, I have signed nearly 100 executive orders and taken more than 400 executive actions — a record — to restore common sense, safety, optimism, and wealth all across our wonderful land.  The people elected me to do the job, and I’m doing it.  (Applause.)
    In fact, it has been stated by many that the first month of our presidency — it’s our presidency — (applause) — is the most successful in the history of our nation by many.  (Applause.)  And what makes it even more impressive is that — do you know who number two is?  George Washington.  How about that?  (Laughter and applause.)  How about that?  I don’t know about that list, but we’ll take it. 
    Within hours of taking the oath of office, I declared a national emergency on our southern border — (applause) — and I deployed the U.S. military and Border Patrol to repel the invasion of our country.  And what a job they’ve done. 
    As a result, illegal border crossings last month were, by far, the lowest ever recorded. Ever.  (Applause.)  They heard my words, and they chose not to come.  Much easier that way. 
    In comparison, under Joe Biden, the worst president in American history — (applause) — there were hundreds of thousands of illegal crossings a month, and virtually all of them, including murderers, drug dealers, gang members, and people from mental institutions and insane asylums, were released into our country.  Who would want to do that?
    This is my fifth such speech to Congress, and, once again, I look at the Democrats in front of me, and I realize there is absolutely nothing I can say to make them happy or to make them stand or smile or applaud.  Nothing I can do.  I could find a cure to the most devastating disease — a disease that would wipe out entire nations, or announce the answers to the greatest economy in history or the stoppage of crime to the lowest levels ever recorded, and these people sitting right here will not clap, will not stand, and certainly will not cheer for these astronomical achievements.  They won’t do it no matter what.
    Five times I’ve been up here.  It’s very sad, and it just shouldn’t be this way.  (Applause.)
    So, Democrats sitting before me, for just this one night, why not join us in celebrating so many incredible wins for America?  For the good of our nation, let’s work together and let’s truly make America great again.  (Applause.)
    Every day, my administration is fighting to deliver the change America needs, to bring a future that America deserves, and we’re doing it.  This is a time for big dreams and bold action. 
    Upon taking office, I imposed an immediate freeze on all federal hiring, a freeze on all new federal regulations, and a freeze on all foreign aid.  (Applause.)  I terminated the ridiculous Green New Scam.  I withdrew from the unfair Paris Climate Accord, which was costing us trillions of dollars that other countries were not paying.  (Applause.)  I withdrew from the corrupt World Health Organization.  (Applause.)  And I also withdrew from the anti-American U.N. Human Rights Council.  (Applause.)
    We ended all of Biden’s environmental restrictions that were making our country far less safe and totally unaffordable.  And importantly, we ended the last administration’s insane electric vehicle mandate, saving our autoworkers and companies from economic destruction.  (Applause.)
    To unshackle our economy, I have directed that for every 1 new regulation, 10 old regulations must be eliminated, just like I did in my very successful first term.  (Applause.)  And in that first term, we set records on ending unnecessary rules and regulations like no other president had done before. 
    We ordered all federal workers to return to the office.  They will either show up for work in person or be removed from their job.  (Applause.)  
    And we have ended weaponized government, where, as an example, a sitting president is allowed to viciously prosecute his political opponent, like me.  How did that work out? (Laughter.)  Not too good.  (Applause.)  Not too good. 
    And I have stopped all government censorship and brought back free speech in America.  It’s back.  (Applause.) 
    And two days ago, I signed an order making English the official language of the United States of America.  (Applause.)  
    I renamed the Gulf of Mexico the Gulf of America.  (Applause.) 
    And, likewise, I renamed — for a great president, William McKinley — Mount McKinley again.  (Applause.)  Beautiful Alaska.  We love Alaska.
    We’ve ended the tyranny of so-called diversity, equity, and inclusion policies all across the entire federal government and, indeed, the private sector and our military.  (Applause.)  And our country will be woke no longer.  (Applause.)
    We believe that whether you are a doctor, an accountant, a lawyer, or an air traffic controller, you should be hired and promoted based on skill and competence, not race or gender.  Very important.  (Applause.)  You should be hired based on merit.  And the Supreme Court, in a brave and very powerful decision, has allowed us to do so.
    Thank you.  Thank you very much.  Thank you.  (Applause.)
    We have removed the poison of critical race theory from our public schools.  And I signed an order making it the official policy of the United States government that there are only two genders: male and female.  (Applause.) 
    I also signed an executive order to ban men from playing in women’s sports.  (Applause.) 
         Three years ago, Payton McNabb was an all-star high school athlete — one of the best — preparing for a future in college sports.  But when her girls’ volleyball match was invaded by a male, he smashed the ball so hard in Payton’s face, causing traumatic brain injury, partially paralyzing her right side, and ending her athletic career.  It was a shot like she’s never seen before.  She’s never seen anything like it.
    Payton is here tonight in the gallery.  And, Payton, from now on, schools will kick the men off the girls’ team or they will lose all federal funding.  (Applause.) 
    And if you really want to see numbers, just take a look at what happened in the woman’s boxing, weightlifting, track and field, swimming, or cycling, where a male recently finished a long-distance race five hours and 14 minutes ahead of a woman for a new record by five hours.  Broke the record by five hours. 
    It’s demeaning for women, and it’s very bad for our country.  We’re not going to put up with it any longer.  (Applause.) 
    What I have just described is only a small fraction of the commonsense revolution that is now, because of us, sweeping the entire world.  Common sense has become a common theme, and we will never go back.  Never.  Never going to let that happen.  (Applause.)
    Among my very highest priorities is to rescue our economy and get dramatic and immediate relief to working families.  As you know, we inherited from the last administration an economic catastrophe and an inflation nightmare.  Their policies drove up energy prices, pushed up grocery costs, and drove the necessities of life out of reach for millions and millions of Americans.  They’ve never had anything like it. 
    We suffered the worst inflation in 48 years but perhaps even in the history of our country. They’re not sure.  As president, I’m fighting every day to reverse this damage and make America affordable again.  (Applause.)
    Joe Biden especially let the price of eggs get out of control.
    AUDIENCE:  Booo —
    THE PRESIDENT:  The egg price is out of control, and we’re working hard to get it back down. 
    Secretary, do a good job on that.  You inherited a total mess from the previous administration.  Do a good job.  (Applause.) 
    A major focus of our fight to defeat inflation is rapidly reducing the cost of energy.  The previous administration cut the number of new oil and gas leases by 95 percent, slowed pipeline construction to a halt, and closed more than 100 power plants.  We are opening up many of those power plants right now.  (Applause.) 
    And, frankly, we have never seen anything like it.  That’s why, on my first day in office, I declared a national energy emergency.  (Applause.)  As you’ve heard me say many times, we have more liquid gold under our feet than any nation on Earth and by far.  And now I’ve fully authorized the most talented team ever assembled to go and get it.  It’s called drill, baby, drill.  (Applause.) 
    My administration is also working on a gigantic natural gas pipeline in Alaska — among the largest in the world — where Japan, South Korea, and other nations want to be our partner with investments of trillions of dollars each.  There’s never been anything like that one.  It will be truly spectacular.  It’s all set to go.  The permitting is gotten.
    And later this week, I will also take historic action to dramatically expand production of critical minerals and rare earths here in the USA.  (Applause.)  
    To further combat inflation, we will not only be reducing the cost of energy, but we’ll be ending the flagrant waste of taxpayer dollars.  (Applause.)  And to that end, I have created the brand-new Department of Government Efficiency – DOGE. (Applause.) Perhaps you’ve heard of it — perhaps — which is headed by Elon Musk, who is in the gallery tonight.  (Applause.)
    Thank you, Elon.  He’s working very hard.  He didn’t need this.  (Laughs.)  He didn’t need this.  Thank you very much.  We appreciate it.  Everybody here, even this side, appreciates it, I believe.  (Applause.)  They just don’t want to admit that.
    Just listen to some of the appalling waste we have already identified.
    $22 billion from HHS to provide free housing and cars for illegal aliens.
    $45 million for diversity, equity, and inclusion scholarships in Burma.
    $40 million to improve the social and economic inclusion of sedentary migrants.  Nobody knows what that is.  (Laughter.) 
    $8 million to promote LGBTQI+ in the African nation of Lesotho, which nobody has ever heard of.  (Laughter.)
    $60 million for Indigenous peoples and Afro-Colombian empowerment in Central America.  $60 million.
    $8 million for making mice transgender.  (Laughter.)  This is real.
    $32 million for a left-wing propaganda operation in Moldova.
    $10 million for male circumcision in Mozambique.
    $20 million for the Arab “Sesame Street” in the Middle East.  It’s a program.  $20 million for a program.
    $1.9 billion to recently created decarbonization of homes committee, headed up — and we know she’s involved — just at the last moment, the money was passed over — by a woman named Stacey Abrams.  Have you ever heard of her?
    AUDIENCE:  Booo —
    THE PRESIDENT:  A $3.5 million consulting contract for lavish fish monitoring.
    $1.5 million for voter confidence in Liberia.
    $14 million for social cohesion in Mali.
    $59 million for illegal alien hotel rooms in New York City. 
    AUDIENCE:  Booo —
    THE PRESIDENT:  He’s a real estate developer.  He’s done very well.
    $250,000 to increase vegan local climate action innovation in Zambia.
    $42 million for social and behavior change in Uganda.
    $14 million for improving public procurement in Serbia.
    $47 million for improving learning outcomes in Asia.  Asia is doing very well with learning.  (Laughter.)  Don’t know what we’re doing.  We should use it ourselves.
    And $101 million for DEI contracts at the Department of Education, the most ever paid.  Nothing even like it.
    Under the Trump administration, all of these scams — and there are far worse, but I didn’t think it was appropriate to talk about them.  They’re so bad.  Many more have been found out and exposed and swiftly terminated by a group of very intelligent, mostly young people, headed up by Elon.  And we appreciate it.  We’ve found hundreds of billions of dollars of fraud.  (Applause.)
    And we’ve taken back the money and reduced our debt to fight inflation and other things.  Taken back a lot of that money.  We got it just in time. 
    AUDIENCE MEMBERS:  (Inaudible.)
    THE PRESIDENT:  This is just the beginning.  The Government Accountability Office, a federal government office, has estimated annual fraud of over $500 billion in our nation, and we are working very hard to stop it.  We’re going to.
    We’re also identifying shocking levels of incompetence and probable fraud in the Social Security program for our seniors and that our seniors and people that we love rely on.  Believe it or not, government databases list 4.7 million Social Security members from people aged 100 to 109 years old.
    THE PRESIDENT:  It lists 3.6 million people from ages 110 to 119.  I don’t know any of them.  I know some people that are rather elderly, but not quite that elderly.  (Laughter.) 
    3.47 million people from ages 120 to 129. 
    3.9 million people from ages 130 to 139.
    3.5 million people from ages 140 to 149.
    And money is being paid to many of them, and we’re searching right now. 
    In fact, Pam, good luck.  Good luck.  You’re going to find it.
    But a lot of money is paid out to people because it just keeps getting paid and paid, and nobody does — and it really hurts Social Security and hurts our country.
    1.3 million people from ages 150 to 159.  And over 130,000 people, according to the Social Security databases, are age over 160 years old.  
    We have a healthier country than I thought, Bobby.  (Laughter and applause.)
    Including, to finish, 1,039 people between the ages of 220 and 229; one person between the age of 240 and 249; and one person is listed at 360 years of age.
    AUDIENCE MEMBER:  Joe Biden!  (Laughter.)
    THE PRESIDENT: More than 100 years older than our country. 
    But we’re going to find out where that money is going, and it’s not going to be pretty. 
    By slashing all of the fraud, waste, and theft we can find, we will defeat inflation, bring down mortgage rates, lower car payments and grocery prices, protect our seniors, and put more money in the pockets of American families.  (Applause.) 
    And today, interest rates took a beautiful drop — big, beautiful drop.  It’s about time.
    And in the near future, I want to do what has not been done in 24 years: balance the federal budget.  We’re going to balance it.  (Applause.) 
    With that goal in mind, we have developed in great detail what we are calling the gold card, which goes on sale very, very soon.  
         For $5 million, we will allow the most successful, job-creating people from all over the world to buy a path to U.S. citizenship.  It’s like the green card but better and more sophisticated.  (Laughter.)  And these people will have to pay tax in our country.  They won’t have to pay tax from where they came.  The money that they’ve made, you wouldn’t want to do that, but they have to pay tax, create jobs.
    They’ll also be taking people out of colleges and paying for them so that we can keep them in our country, instead of having them being forced out.  Number one at the top school, as an example, being forced out and not being allowed to stay and create tremendous numbers of jobs and great success for a company out there.
    So, while we take out the criminals, killers, traffickers, and child predators who were allowed to enter our country under the open border policy of these people — the Democrats, the Biden administration — the open border, insane policies that you’ve allowed to destroy our country — we will now bring in brilliant, hardworking, job-creating people.  They’re going to pay a lot of money, and we’re going to reduce our debt with that money.  (Applause.)
    Americans have given us a mandate for bold and profound change.  For nearly 100 years, the federal bureaucracy has grown until it has crushed our freedoms, ballooned our deficits, and held back America’s potential in every possible way.  The nation founded by pioneers and risk-takers now drowns under millions and millions of pages of regulations and debt. 
    Approvals that should take 10 days to get instead take 10 years, 15 years, and even 20 years before you’re rejected.  Meanwhile, we have hundreds of thousands of federal workers who have not been showing up to work. 
    My administration will reclaim power from this unaccountable bureaucracy, and we will restore true democracy to America again. (Applause.)  Any federal bureaucrat who resists this change will be removed from office immediately — (applause) — because we are draining the swamp.  It’s very simple.  And the days of rule by unelected bureaucrats are over.  (Applause.)
    And the next phase of our plan to deliver the greatest economy in history is for this Congress to pass tax cuts for everybody.  They’re in there.  They’re waiting for you to vote.  (Applause.) 
    And I’m sure that the people on my right — I don’t mean the Republican right, but my right right here — I’m sure you’re going to vote for those tax cuts, because, otherwise, I don’t believe the people will ever vote you into office.  So, I’m doing you a big favor by telling you that.  (Applause.)
    But I know this group is going to be voting for the taxes.  (Applause.)
    Thank you.  It’s a very, very big part of our plan.  We had tremendous success in our first term with it.  A very big part of our plan.  We’re seeking permanent income tax cuts all across the board.
    And to get urgently needed relief to Americans hit especially hard by inflation, I’m calling for no tax on tips, no tax on overtime, and no tax on Social Security benefits for our great seniors.  (Applause.) 
    (Addressing Speaker Johnson.)  Good luck.
    And I also want to make interest payments on car loans tax deductible but only if the car is made in America.  (Applause.)  
    And, by the way, we’re going to have growth in the auto industry like nobody has ever seen.  Plants are opening up all over the place.  Deals are being made.  Never seen. That’s a combination of the election win and tariffs. 
    It’s a beautiful word, isn’t it? 
    That, along with our other policies, will allow our auto industry to absolutely boom.  It’s going to boom.  Spoke to the majors today — all three — the top people, and they’re so excited.  In fact, already, numerous car companies have announced that they will be building massive automobile plants in America, with Honda just announcing a new plant in Indiana, one of the largest anywhere in the world.  (Applause.) 
    And this has taken place since our great victory on November 5th, a date which will hopefully go down as one of the most important in the history of our country.  (Applause.)  
    In addition, as part of our tax cuts, we want to cut taxes on domestic production and all manufacturing.  And just as we did before, we will provide 100 percent expensing.  It will be retroactive to January 20th, 2025, and it was one of the main reasons why our tax cuts were so successful in our first term, giving us the most successful economy in the history of our country.  First term — we had a great first term.  (Applause.) 
    If you don’t make your product in America, however, under the Trump administration, you will pay a tariff and, in some cases, a rather large one.  Other countries have used tariffs against us for decades, and now it’s our turn to start using them against those other countries.
    On average, the European Union, China, Brazil, India, Mexico, and Canada — have you heard of them? — and countless other nations charge us tremendously higher tariffs than we charge them.  It’s very unfair.  India charges us auto tariffs higher than 100 percent.  China’s average tariff on our products is twice what we charge them.  And South Korea’s average tariff is four times higher.  Think of that: four times higher.  And we give so much help militarily and in so many other ways to South Korea, but that’s what happens.
    This is happening by friend and foe.  This system is not fair to the United States and never was.  And so, on April 2nd — I wanted to make it April 1st, but I didn’t want to be accused of April Fool’s Day.  (Laughter.)  Just one day, which cost us a lot of money.  (Laughter.)  But we’re going to do it in April. I’m a very superstitious person. April 2nd, reciprocal tariffs kick in.  And whatever they tariff us — other countries — we will tariff them.  That’s reciprocal, back and forth.  (Applause.)  Whatever they tax us, we will tax them.
    If they do non-monetary tariffs to keep us out of their market, then we will do non-monetary barriers to keep them out of our market.  There’s a lot of that too.  They don’t even allow us in their market.
    We will take in trillions and trillions of dollars and create jobs like we have never seen before.  I did it with China, and I did it with others.  And the Biden administration couldn’t do anything about it because it was so much money.  They couldn’t do anything about it.
    We have been ripped off for decades by nearly every country on Earth, and we will not let that happen any longer.  (Applause.) 
    Much has been said over the last three months about Mexico and Canada, but we have very large deficits with both of them.  But even more importantly, they have allowed fentanyl to come into our country at levels never seen before, killing hundreds of thousands of our citizens and many very young, beautiful people — destroying families.  Nobody has ever seen anything like it. 
    They are, in effect, receiving subsidies of hundreds of billions of dollars.  We pay subsidies to Canada and to Mexico of hundreds of billions of dollars.  And the United States will not be doing that any longer.  We’re not going to do it any longer.  (Applause.)
    Thanks to our America First policies we’re putting into place, we have had $1.7 trillion of new investment in America in just the past few weeks.  (Applause.)  The combination of the election and our economic policies — the people of SoftBank, one of the most brilliant anywhere in the world, announced a $200 billion investment.  OpenAI and Oracle — Larry Ellison — announced $500 billion investment, which they wouldn’t have done if Kamala had won.  (Applause.)
    Apple announced $500 billion investment.  Tim Cook called me.  He said, “I cannot spend it fast enough.”  It’s going to be much higher than that, I believe.  They’ll be building their plants here, instead of in China. 
    And just yesterday, Taiwan Semiconductor — the biggest in the world, most powerful in the world, has a tremendous amount — 97 percent of the market, announced a $165 billion investment to build the most powerful chips on Earth right here in the USA.  (Applause.) 
    And we’re not giving them any money.  Your CHIPS Act is a horrible, horrible thing.  We give hundreds of billions of dollars, and it doesn’t mean a thing.  They take our money, and they don’t spend it.  All that meant to them — we’re giving them no money.  All that was important to them was they didn’t want to pay the tariffs, so they came and they’re building.  And many other companies are coming.  
    We don’t have to give them money.  We just want to protect our businesses and our people.  And they will come because they won’t have to pay tariffs if they build in America.  And so, it’s very amazing.
    You should get rid of the CHIP Act.  And whatever is left over, Mr. Speaker, you should use it to reduce debt or any other reason you want to.  (Applause.) 
    Our new trade policy will also be great for the American farmer — I love the farmer — (applause) — who will now be selling into our home market, the USA, because nobody is going to be able to compete with you.  Because those goods that come in from other countries and companies, they’re really, really in a bad position in so many different ways.  They’re uninspected.  They may be very dirty and disgusting, and they come in and they pour in, and they hurt our American farmers.
    The tariffs will go on agricultural product coming into America.  And our farmers, starting on April 2nd — it may be a little bit of an adjustment period.  We had that before, when I made the deal with China.  Fifty billion dollars of purchases, and I said, “Just bear with me,” and they did.  They did.  Probably have to bear with me again, and this will be even better.  
    That was great.  The problem with it was that Biden didn’t enforce it.  He didn’t enforce it.  Fifty billion dollars of purchases, and we were doing great, but Biden did not enforce it.  And it hurt our farmers, but our farmers are going to have a field day right now.
    So, to our farmers, have a lot of fun.  I love you too.  I love you too.  (Applause.)  It’s all going to happen.
    And I have also imposed a 25 percent tariff on foreign aluminum, copper, lumber, and steel, because if we don’t have, as an example, steel and lots of other things, we don’t have a military and, frankly, we just won’t have a country very long.
    Here today is a proud American steelworker, fantastic person from Decatur, Alabama.  Jeff Denard has been working at the same steel plant for 27 years in a job that has allowed him to serve as the captain of his local volunteer fire department; raise seven children with his beautiful wife, Nicole; and over the years, provide a loving home for more than 40 foster children.  So great, Jeff.  (Applause.) 
    Thank you, Jeff.  Thank you, Jeff.  (Applause.)
    Stories like Jeff’s remind us that tariffs are not just about protecting American jobs.  They’re about protecting the soul of our country.  Tariffs are about making America rich again and making America great again.  And it’s happening, and it will happen rather quickly.
    There will be a little disturbance, but we’re okay with that.  It won’t be much. 
    AUDIENCE MEMBER:  No, we’re not!
    THE PRESIDENT:  No, you’re not.  Oh.  (Laughter.)
    And look — and look where Biden took us.  Very low.  The lowest we’ve ever been.
    Jeff, I want to thank you very much.
    And I also want to recognize another person who has devoted herself to foster care community.  She worked so hard on it.  A very loving person.  Our magnificent first lady of the United States.  (Applause.)
    Melania’s work has yielded incredible results, helping prepare our nation’s future leaders as they enter the workforce.  
    Our first lady is joined by two impressive young women — very impressive: Haley Ferguson, who benefited from the first lady’s Fostering the Future initiative and is poised to complete her education and become a teacher, and Elliston Berry, who became a victim of an illicit deepfake image produced by a peer.  With Elliston’s help, the Senate just passed the Take It Down Act — 
    This is so important.  Thank you very much, John.  John Thune, thank you.  (Applause.)  Stand up, John.  Thank you, John.  (Applause.)  Thank you all very much.  Thank you.
    And thank you to John Thune and the Senate.  A great job.
    — to criminalize the publication of such images online.  This terrible, terrible thing.  And once it passes the House, I look forward to signing that bill into law.  Thank you.  
    And I’m going to use that bill for myself too, if you don’t mind — (laughter) — because nobody gets treated worse than I do online.  Nobody.  (Laughter.) 
    That’s great.  Thank you very much to the Senate.  Thank you.
    But if we truly care about protecting America’s children, no step is more crucial than securing America’s borders.  Over the past four years, 21 million people poured into the United States.  Many of them were murderers, human traffickers, gang members, and other criminals from the streets of dangerous cities all throughout the world.  Because of Joe Biden’s insane and very dangerous open border policies, they are now strongly embedded in our country, but we are getting them out and getting them out fast.  (Applause.)
    And I want to thank Tom Homan.  And, Kristi, I want to thank you.  And Paul of Border Patrol, I want to thank you.  What a job they’ve all done.  Everybody.  Border Patrol, ICE.  Law enforcement, in general, is incredible.  We have to take care of our law enforcement.  (Applause.)  We have to. 
    Last year, a brilliant 22-year-old nursing student named Laken Riley — the best in her class, admired by everybody — went out for a jog on the campus of the University of Georgia.  That morning, Laken was viciously attacked, assaulted, beaten, brutalized, and horrifically murdered.  Laken was stolen from us by a savage illegal alien gang member who was arrested while trespassing across Biden’s open southern border and then set loose into the United States under the heartless policies of that failed administration.  It was indeed a failed administration.
    He had then been arrested and released in a Democrat-run sanctuary city — a disaster — before ending the life of this beautiful young angel.
    With us this evening are Laken’s beloved mother, Allyson, and her sister, Lauren.  (Applause.)
    Last year, I told Laken’s grieving parents that we would ensure their daughter would not have died in vain.  That’s why the very first bill I signed into law as your 47th president mandates the detention of all dangerous criminal aliens who threaten public safety.  It’s a very strong, powerful act.  (Applause.)  It’s called the Laken Riley Act.  (Applause.) 
    So, Allyson and Lauren, America will never, ever forget our beautiful Laken Hope Riley.  (Applause.)
    Thank you very much.
    Since taking office, my administration has launched the most sweeping border and immigration crackdown in American history, and we quickly achieved the lowest numbers of illegal border crossers ever recorded.  Thank you.  (Applause.)
    The media and our friends in the Democrat Party kept saying we needed new legislation.  “We must have legislation to secure the border.”  But it turned out that all we really needed was a new president.  (Applause.) 
    AUDIENCE:  Trump!  Trump!  Trump!
    THE PRESIDENT:  Thank you.
    Joe Biden didn’t just open our borders.  He flew illegal aliens over them to overwhelm our schools, hospitals, and communities throughout the country.  Entire towns, like Aurora, Colorado, and Springfield, Ohio, buckled under the weight of the migrant occupation and corruption like nobody has ever seen before.  Beautiful towns destroyed.
    Now, just as I promised in my Inaugural Address, we are achieving the great liberation of America.  (Applause.)
    But there still is much work to be done. 
    Here tonight is a woman I have gotten to know: Alexis Nungaray from Houston.  Wonderful woman.  Last June, Alexis’s 12-year-old daughter, her precious Jocelyn, walked to a nearby convenience store.  She was kidnapped, tied up, assaulted for two hours under a bridge, and horrifically murdered.  Arrested and charged with this heinous crime are two illegal alien monsters from Venezuela, released into America by the last administration through their ridiculous open border.
    The death of this beautiful 12-year-old girl and the agony of her mother and family touched our entire nation greatly. 
    Alexis, I promised that we would always remember your daughter — your magnificent daughter.  And earlier tonight, I signed an order keeping my word to you.  
    One thing I have learned about Jocelyn is that she loved animals so much.  She loved nature.  Across Galveston Bay from where Jocelyn lived in Houston, you will find a magnificent national wildlife refuge. A pristine, peaceful, 34,000-acre sanctuary for all of God’s creatures on the edge of the Gulf of America.
    Alexis, moments ago, I formally renamed that refuge in loving memory of your beautiful daughter, Jocelyn.
    So, Mr. Vice President, if you would, may I have the order?  (Applause.)
    (The president holds up the executive order.)
    Thank you very much. 
    All three savages charged with Jocelyn and Laken’s murders were members of the Venezuelan prison gang — the toughest gang, they say, in the world — known as Tren de Aragua.  Two weeks ago, I officially designated this gang, along with MS-13 and the bloodthirsty Mexican drug cartels, as foreign terrorist organizations.  (Applause.)  They are now officially in the same category as ISIS, and that’s not good for them. 
    Countless thousands of these terrorists were welcomed into the U.S. by the Biden administration, but now every last one will be rounded up and forcibly removed from our country, or, if they’re too dangerous, put in jails, standing trial in this country, because we don’t want them to come back ever.
    With us this evening is a warrior on the front lines of that battle, Border Patrol agent Roberto Ortiz.  Great guy.  (Applause.)  
    In January, Roberto and another agent were patrolling by the Rio Grande, near an area known as Cartel Island — doesn’t sound too nice to me — when heavily armed gunmen started shooting at them.  Roberto saw that his partner was totally exposed, in great danger, and he leapt into action, returning fire and providing crucial seconds for his fellow agent to seek safety, and just barely.  I have some of the prints of that event, and it was not good. 
    Agent Ortiz, we salute you for your great courage and for your line of fire that you took and for the bravery that you showed.  We honor you, and we will always honor you.  Thank you, Roberto, very much.  (Applause.)  Thank you, Roberto. 
    And I actually got to know him on my many calls to the border.  He’s a great, great gentleman.
    The territory to the immediate south of our border is now dominated entirely by criminal cartels that murder, rape, torture, and exercise total control — they have total control over a whole nation — posing a grave threat to our national security.  The cartels are waging war in America, and it’s time for America to wage war on the cartels, which we are doing.  (Applause.)
    Five nights ago, Mexican authorities, because of our tariff policies being imposed on them — think of this — handed over to us 29 of the biggest cartel leaders in their country.  That has never happened before.  They want to make us happy.  (Applause.)  First time ever.
    But we need Mexico and Canada to do much more than they’ve done, and they have to stop the fentanyl and drugs pouring into the USA.  They’re going to stop it.  
    I have sent Congress a detailed funding request laying out exactly how we will eliminate these threats to protect our homeland and complete the largest deportation operation in American history, larger even than current record holder, President Dwight D. Eisenhower, a moderate man but someone who believed very strongly in borders.  Americans expect Congress to send me this funding without delay so I can sign it into law. 
    So, Mr. Speaker, John Thune, both of you, I hope you’re going to be able to do that.  Mr. Speaker, thank you.  Mr. Leader, thank you.  Thank you very much.  And let’s get it to me.  I’ll sign it so fast, you won’t even believe it.  (Applause.)
    And as we reclaim our sovereignty, we must also bring back law and order to our cities and towns.  (Applause.)  In recent years, our justice system has been turned upside down by radical-left lunatics.  Many jurisdictions virtually ceased enforcing the law against dangerous repeat offenders while weaponizing law enforcement against political opponents like me.
    My administration has acted swiftly and decisively to restore fair, equal, and impartial justice under the constitutional rule of law, starting at the FBI and the DOJ.  
    Pam, good luck.  Kash, wherever you may be, good luck.  (Applause.)  Good luck.  Pam Bondi, good luck.  So important.  Going to do a great job.  (Applause.)  
    Kash, thank you.  Thank you, Kash.  (Applause.)
    They have already started very strong.  They’re going to do a fantastic job.  You’re going to be very proud of them. 
    We’re also, once again, giving our police officers the support, protection, and respect they so dearly deserve.  They have to get it.  They have such a hard, dangerous job, but we’re going to make it less dangerous.  The problem is the bad guys don’t respect the law, but they’re starting to respect it, and they soon will respect it.
    (Cross-talk.)
    This also includes our great fire departments throughout the country.  Our firemen and women are unbelievable people, and I will never forget them.  And besides that, they voted for me in record numbers, so I have no choice.  (Applause.)
    One year ago this month, 31-year-old New York police officer Jonathan Diller — unbelievably wonderful person and a great officer — was gunned down at a traffic stop on Long Island.  I went to his funeral.  The vicious criminal charged with his murder had 21 prior arrests, and they were rough arrests too.  He was a real bad one.
    The thug in the seat next to him had 14 prior arrests and went by the name of “Killer.”  He was Killer.  He killed other people.  They say a lot of them. 
    I attended Officer Diller’s service, and when I met his wife and one-year-old son, Ryan, it was very inspirational, actually.  His widow’s name is Stephanie, and she is here tonight.  Stephanie, thank you very much, Stephanie.  Thank you very much.  (Applause.)
    Stephanie, we’re going to make sure that Ryan knows his dad was a true hero — New York’s Finest.  And we’re going to get these cold-blooded killers and repeat offenders off our streets, and we’re going to do it fast.  Got to stop it. 
    They get out with 28 arrests.  They push people into subway trains.  They hit people over the back of the head with baseball bats.  We got to get them out of here. 
    I’ve already signed an executive order requiring a mandatory death penalty for anyone who murders a police officer.  And, tonight, I’m asking Congress to pass that policy into permanent law.  (Applause.)
    I’m also asking for a new crime bill, getting tough on repeat offenders while enhancing protections for America’s police officers so they can do their jobs without fear of their lives being totally destroyed.  They don’t want to be killed.  We’re not going to let them be killed.
    Joining us in the gallery tonight is a young man who truly loves our police.  His name is D.J. Daniel.  He is 13 years old, and he has always dreamed of becoming a police officer.  (Applause.)
    But in 2018, D.J. was diagnosed with brain cancer.  The doctors gave him five months at most to live.  That was more than six years ago.  (Applause.)
    Since that time, D.J. and his dad have been on a quest to make his dream come true, and D.J. has been sworn in as an honorary law enforcement officer, actually, a number of times.  Pec- — the police love him.  The police departments love him. 
    And tonight, D.J., we’re going to do you the biggest honor of them all.  I am asking our new Secret Service director, Sean Curran, to officially make you an agent of the United States Secret Service.  (Applause.)
    (Director Curran presents Mr. Daniel with a Secret Service Agent credential.)
    AUDIENCE:  D.J.!  D.J.!  D.J.!
    THE PRESIDENT:  Thank you, D.J. 
    D.J.’s doctors believe his cancer likely came from a chemical he was exposed to when he was younger.  Since 1975, rates of child cancer have increased by more than 40 percent.  Reversing this trend is one of the top priorities for our new presidential commission to make America healthy again, chaired by our new secretary of Health and Human Services, Robert F. Kennedy, Jr.  (Applause.) 
    AUDIENCE MEMBER:  MAHA, baby!
    THE PRESIDENT:  With the name “Kennedy,” you would have thought everybody over here would have been cheering.  (Laughter.)  How quickly they forget.  
    Our goal is to get toxins out of our environment, poisons out of our food supply, and keep our children healthy and strong.  
    As an example, not long ago — you can’t even believe these numbers — 1 in 10,000 children had autism. 1 in 10,000.  And now it’s 1 in 36.  There’s something wrong.  One in 36.  Think of that. 
    So, we’re going to find out what it is, and there’s nobody better than Bobby and all of the people that are working with you — you have the best — to figure out what is going on.  
    Okay, Bobby?  Good luck.  It’s a very important job.  Thank you.  (Applause.)  Thank you.  Thank you.
    My administration is also working to protect our children from toxic ideologies in our schools. 
         A few years ago, January Littlejohn and her husband discovered that their daughter’s school had secretly socially transitioned their 13-year-old little girl.  Teachers and administrators conspired to deceive January and her husband, while encouraging her daughter to use a new name and pronouns — “they/them” pronouns, actually — all without telling January, who is here tonight and is now a courageous advocate against this form of child abuse.  January, thank you.  Thank you.  Thank you very much.  (Applause.)  Thank you.  Thank you. 
    Stories like this are why, shortly after taking office, I signed an executive order banning public schools from indoctrinating our children with transgender ideology.  (Applause.) 
    I also signed an order to cut off all taxpayer funding to any institution that engages in the sexual mutilation of our youth.  (Applause.)  And now I want Congress to pass a bill permanently banning and criminalizing sex changes on children and forever ending the lie that any child is trapped in the wrong body.  This is a big lie.  (Applause.)
    And our message to every child in America is that you are perfect exactly the way God made you.  (Applause.)
         Because we’re getting wokeness out of our schools and out of our military, and it’s already out, and it’s out of our society.  We don’t want it.  Wokeness is trouble.  Wokeness is bad.  It’s gone.  It’s gone.  And we feel so much better for it, don’t we?  Don’t we feel better?  (Applause.)  
         Our service members won’t be activists and ideologues.  They will be fighters and warriors.  They will fight for our country.           And, Pete, congratulations.  Secretary of Defense, congratulations.  (Applause.)
         And he’s not big into the woke movement, I can tell you.  (Laughter.)  I know him well. 
         I am pleased to report that, in January, the U.S. Army had its single best recruiting month in 15 years and that all armed services are having among the best recruiting results ever in the history of our services.  (Applause.)  What a difference.
         And you know it was just a few months ago where the results were exactly the opposite.  We couldn’t recruit anywhere.  We couldn’t recruit.  Now we’re having the best results, just about, that we’ve ever had.  What a tremendous turnaround.  It’s really a beautiful thing to see.  People love our country again.  It’s very simple.  They love our country, and they love being in our military again.  So, it’s a great thing.  And thank you very much.  Great job.  Thank you.  (Applause.)
         We’re joined tonight by a young man, Jason Hartley, who knows the weight of that call of duty.  Jason’s father, grandfather, and great-grandfather all wore the uniform. 
         Jason tragically lost his dad, who was also a Los Angeles County sheriff’s deputy, when he was just a boy, and now he wants to carry on the family legacy of service.  Jason is a senior in high school, a six-letter varsity athlete — a really good athlete, they say — a brilliant student, with a 4.46 — that’s good — GPA.  (Laughter.)  And his greatest dream is to attend the U.S. Military Academy at West Point.  (Applause.) 
         And, Jason, that’s a very big deal getting in.  That’s a hard one to get into.  But I’m pleased to inform you that your application has been accepted.  You will soon be joining the Corps of Cadets.  (Applause.) 
         Thank you.  Jason, you’re going to be on the Long Gray Line, Jason. 
         As commander in chief, my focus is on building the most powerful military of the future.  As a first step, I’m asking Congress to fund a state-of-the-art Golden Dome missile defense shield to protect our homeland, all made in the USA.  (Applause.) 
         And Ronald Reagan wanted to do it long ago, but the technology just wasn’t there, not even close.  But now we have the technology.  It’s incredible, actually.  And other places, they have it: Israel has it.  Other places have it.  And the United States should have it too.  Right, Tim?  Right?  (Applause.)  They should have it too.  So, I want to thank you. 
         But it’s a very important.  This is a very dangerous world.  We should have it.  We want to be protected.  And we’re going to protect our citizens like never before.
         To boost our defense industrial base, we are also going to resurrect the American shipbuilding industry, including commercial shipbuilding and military shipbuilding.  (Applause.)
         And for that purpose, I am announcing tonight that we will create a new Office of Shipbuilding in the White House and offer special tax incentives to bring this industry home to America, where it belongs. 
         We used to make so many ships.  We don’t make them anymore very much, but we’re going to make them very fast, very soon.  It will have a huge impact.          To further enhance our national security, my administration will be reclaiming the Panama Canal, and we’ve already started doing it.  (Applause.)
         Just today, a large American company announced they are buying both ports around the Panama Canal and lots of other things having to do with the Panama Canal and a couple of other canals. 
         The Panama Canal was built by Americans for Americans, not for others, but others could use it.  But it was built at tremendous cost of American blood and treasure.  Thirty-eight thousand workers died building the Panama Canal.  They died of malaria.  They died of snake bites and mosquitoes.  Not a nice place to work.  They paid them very highly to go there, knowing there was a 25 percent chance that they would die.  The most expensive project, also, that was ever built in our country’s history, if you bring it up to modern-day costs.
         It was given away by the Carter administration for $1, but that agreement has been violated very severely.  We didn’t give it to China.  We gave it to Panama, and we’re taking it back.  (Applause.)
         And we have Marco Rubio in charge.  Good luck, Marco.  (Laughter and applause.)  Now we know who to blame if anything goes wrong.  (Laughter.) 
    No, Marco has been amazing, and he’s going to do a great job.  Think of it.  He got a hundred votes.  (Applause.)  You know, he was approved with, actually, 99, but the 100th was this gentleman, and I feel very certain — so, let’s assume he got 100 votes.  And I’m either very, very happy about that or I’m very concerned about it.  (Laughter.) 
         But he’s already proven — I mean, he’s a great gentleman.  He’s respected by everybody.  And we appreciate you voting for Marco.  He’s going to do a fantastic job.  Thank you.  (Applause.)  Thank you.  He’s doing a great job.  Great job. 
         And I also have a message tonight for the incredible people of Greenland.  (Laughter.)  We strongly support your right to determine your own future, and, if you choose, we welcome you into the United States of America. 
         We need Greenland for national security and even international security, and we’re working with everybody involved to try and get it.  But we need it, really, for international world security.  And I think we’re going to get it.  One way or the other, we’re going to get it.  
    We will keep you safe.  We will make you rich.  And together, we will take Greenland to heights like you have never thought possible before.  
         It’s a very small population but very, very large piece of land and very, very important for military security.
         America is once again standing strong against the forces of radical Islamic terrorism. 
         Three and a half years ago, ISIS terrorists killed 13 American service members and countless others in the Abbey Gate bombing during the disastrous and incompetent withdrawal from Afghanistan — not that they were withdrawing; it was the way they withdrew.  Perhaps the most embarrassing moment in the history of our country.  
         Tonight, I am pleased to announce that we have just apprehended the top terrorist responsible for that atrocity, and he is right now on his way here to face the swift sword of American justice.  (Applause.)
         And I want to thank, especially, the government of Pakistan for helping arrest this monster. 
         This was a very momentous day for those 13 families, who I actually got to know very well, most of them, whose children were murdered, and the many people that were so badly — over 42 people — so badly injured on that fateful day in Afghanistan.  What a horrible day.  Such incompetence was shown that when Putin saw what happened, I guess he said, “Wow, maybe this is my chance.”  That’s how bad it was.  Should have never happened.  Grossly incompetent people. 
         I spoke to many of the parents and loved ones, and they’re all in our hearts tonight.  Just spoke to them on the phone.  We had a big call.  Every one of them called, and everybody was on the line, and they did nothing but cry with happiness.  They were very happy — as happy as you can be under those circumstances.  Their child, brother, sister, son, daughter was killed for no reason whatsoever. 
         In the Middle East, we’re bringing back our hostages from Gaza.  In my first term, we achieved one of the most groundbreaking peace agreements in generations: the Abraham Accords.  (Applause.) 
    And now we’re going to build on that foundation to create a more peaceful and prosperous future for the entire region.  A lot of things are happening in the Middle East.  People haven’t been talking about that so much lately with everything going on with Ukraine and Russia, but a lot of things are happening in the Middle East.  It’s a rough neighborhood, actually.
         I’m also working tirelessly to end the savage conflict in Ukraine.  Millions of Ukrainians and Russians have been needlessly killed or wounded in this horrific and brutal conflict with no end in sight. 
         The United States has sent hundreds of billions of dollars to support Ukraine’s defense with no security, with no anything.  (Applause.)
         Do you want to keep it going for another five years? 
         SENATOR WARREN:  Yes!
         THE PRESIDENT:  Yeah.  Yeah, you would say — Pocahontas says, “Yes.”  (Laughter.)
         AUDIENCE MEMBERS:  Booo —
         THE PRESIDENT:  Two thousand people are being killed every single week — more than that.  They’re Russian young people.  They’re Ukrainian young people.  They’re not Americans.  But I want it to stop.
         Meanwhile, Europe has sadly spent more money buying Russian oil and gas than they have spent on defending Ukraine, by far.  Think of that.  They’ve spent more buying Russian oil and gas than they have defending.  And we’ve spent, perhaps, $350 billion.  Like taking candy from a baby, that’s what happened.  And they’ve spent $100 billion.  What a difference that is.  And we have an ocean separating us, and they don’t. 
         But we’re getting along very well with them, and lots of good things are happening. 
         Biden has authorized more money in this fight than Europe has spent by billions and billions of dollars.  It’s hard to believe that they wouldn’t have stopped it and said, at some point, “Come on.  Let’s equalize.  You got to be equal to us.”  But that didn’t happen.
         Earlier today, I received an important letter from President Zelenskyy of Ukraine.  The letter reads, “Ukraine is ready to come to the negotiating table as soon as possible to bring lasting peace closer.”  “Nobody wants peace more than the Ukrainians,” he said.  (Applause.)  “My team and I stand ready to work under President Trump’s strong leadership to get a peace that lasts.  We do really value how much America has done to help Ukraine maintain its sovereignty and independence.  Regarding the agreement on minerals and security, Ukraine is ready to sign it at any time that is convenient for you.” 
         I appreciate that he sent this letter.  Just got it a little while ago.  
         Simultaneously, we’ve had serious discussions with Russia and have received strong signals that they are ready for peace.  Wouldn’t that be beautiful?  Wouldn’t that be beautiful?  (Applause.)  Wouldn’t that be beautiful?
         It’s time to stop this madness.  It’s time to halt the killing.  It’s time to end this senseless war.  If you want to end wars, you have to talk to both sides. 
         Nearly four years ago, amid rising tensions, a history teacher named Marc Fogel was detained in Russia and sentenced to 14 years in a penal colony.  Rough stuff. 
         The previous administration barely lifted a finger to help him.  They knew he was innocent, but they had no idea where to begin.  But last summer, I promised his 95-year-old mother, Malphine, that we would bring her boy safely back home.          After 22 days in office, I did just that, and they are here tonight.  (Applause.) 
         To Marc and his great mom, we are delighted to have you safe and sound and with us. 
         As fate would have it, Marc Fogel was born in a small, rural town — in Butler, Pennsylvania — have you heard of it? — where his mother has lived for the past 78 years.
         I just happened to go there last July 13th for a rally. That was not pleasant.  (Laughter.)  And that is where I met his beautiful mom, right before I walked onto that stage.  And I told her I would not forget what she said about her son.  And I never did, did I?  Never forgot.  
         Less than 10 minutes later, at that same rally, gunfire rang out, and a sick and deranged assassin unloaded eight bullets from his sniper’s perch into a crowd of many thousands of people.           My life was saved by a fraction of an inch, but some were not so lucky.  Corey Comperatore was a firefighter, a veteran, a Christian, a husband, a devoted father, and, above all, a protector. 
         When the sound of gunshots pierced the air — it was a horrible sound — Corey knew instantly what it was and what to do.  He threw himself on top of his wife and daughters and shielded them from the bullets with his own body.
         Corey was hit really hard.  You know the story from there.  He sacrificed his life to save theirs. 
         Two others — very fine people — were also seriously hit.  But thankfully, with the help of two great country doctors, we thought they were gone, and they were saved.  So, those doctors had great talent. 
         We’re joined by Corey’s wife, Helen, who was his high school sweetheart, and their two beloved daughters, Allyson and Kaylee.  Thank you.  (Applause.)
         To Helen, Allyson, and Kaylee, Corey is looking down on his three beautiful ladies right now, and he is cheering you on.  He loves you.  He is cheering you on. 
         Corey was taken from us much too soon, but his destiny was to leave us all with a shining example of the selfless devotion of a true American patriot.  It was love like Corey’s that built our country, and it’s love like Corey’s that is going to make our country more majestic than ever before.  
         I believe that my life was saved that day in Butler for a very good reason.  I was saved by God to make America great again.  I believe that.  (Applause.)  Thank you. 
         Thank you.  Thank you very much.  
         From the patriots of Lexington and Concord to the heroes of Gettysburg and Normandy, from the warriors who crossed the Delaware to the trailblazers who climbed the Rockies, and from the legends who soared at Kitty Hawk to the astronauts who touched the Moon, Americans have always been the people who defied all odds, transcended all dangers, made the most extraordinary sacrifices, and did whatever it took to defend our children, our country, and our freedom.
         And as we have seen in this chamber tonight, that same strength, faith, love, and spirit is still alive and thriving in the hearts of the American people.  Despite the best efforts of those who would try to censor us, silence us, break us, destroy us, Americans are today a proud, free, sovereign, and independent nation that will always be free, and we will fight for it till death. 
         We will never let anything happen to our beloved country, because we are a country of doers, dreamers, fighters, and survivors. 
         Our ancestors crossed a vast ocean, strode into the unknown wilderness, and carved their fortunes from the rock and soil of a perilous and very dangerous frontier.  They chased our destiny across a boundless continent.  They built the railroads, laid the highways, and graced the world with American marvels, like the Empire State Building, the mighty Hoover Dam, and the towering Golden Gate Bridge. 
         They lit the world with electricity, broke free of the force of gravity, fired up the engines of American industry, vanquished the communists, fascists, and Marxists all over the world, and gave us countless modern wonders sculpted out of iron, glass, and steel.  
         We stand on the shoulders of these pioneers who won and built the modern age, these workers who poured their sweat into the skylines of our cities, these warriors who shed their blood on fields of battle and gave everything they had for our rights and for our freedom.  
         Now it is our time to take up the righteous cause of American liberty, and it is our turn to take America’s destiny into our own hands and begin the most thrilling days in the history of our country. 
         This will be our greatest era.  
         With God’s help, over the next four years, we are going to lead this nation even higher, and we are going to forge the freest, most advanced, most dynamic, and most dominant civilization ever to exist on the face of this Earth. 
         We are going to create the highest quality of life, build the safest and wealthiest and healthiest and most vital communities anywhere in the world. 
         We are going to conquer the vast frontiers of science, and we are going to lead humanity into space and plant the American flag on the planet Mars and even far beyond.  (Applause.)
         And, through it all, we are going to rediscover the unstoppable power of the American spirit, and we are going to renew unlimited promise of the American dream. 
         Every single day, we will stand up and we will fight, fight, fight for the country our citizens believe in and for the country our people deserve.  (Applause.)  Thank you.  Thank you.
         AUDIENCE MEMBERS:  Fight!  Fight!  Fight!
         THE PRESIDENT:  My fellow Americans, get ready for an incredible future, because the golden age of America has only just begun.  It will be like nothing that has ever been seen before. 
         Thank you.  God bless you.  And God bless America.  (Applause.)
         Thank you.  Thank you, everybody.  Thank you.  Thank you very much.  Thank you very much.  Thank you. 
    Thank you very much.  Appreciate it.
    Thank you very much.
                                 END                11:00 P.M. EST

    MIL OSI USA News

  • MIL-OSI: $TOCKHOLDER ALERT: The M&A Class Action Firm Continues To Investigate The Merger – AMPS, FNA, ESSA, IVAC

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) — Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating:

    • Altus Power, Inc. (NYSE: AMPS), relating to the proposed merger with TPG. Under the terms of the agreement, Altus Power will be acquired by TPG for $5.00 per share of its Class A common stock in an all-cash transaction.

    Click here for more https://monteverdelaw.com/case/altus-power-inc-amps/. It is free and there is no cost or obligation to you.

    • Paragon 28, Inc. (NYSE: FNA), relating to the proposed merger with Zimmer Biomet Holdings, Inc. Under the terms of the agreement, Zimmer Biomet will acquire all outstanding shares of Paragon 28 common stock for $13.00 per share. Paragon 28 shareholders will also receive a non-tradeable contingent value right entitling holders to receive up to $1.00 per share in cash if certain revenue milestones are achieved.

    Click here for more https://monteverdelaw.com/case/paragon-28-inc-fna/. It is free and there is no cost or obligation to you.

    • ESSA Bancorp, Inc. (Nasdaq: ESSA), relating to the proposed merger with CNB Financial Corporation. Under the terms of the agreement, ESSA shareholders will receive 0.8547 shares of CNB common stock for each outstanding share of ESSA common stock.

    Click here for more https://monteverdelaw.com/case/essa-bancorp-inc-essa/. It is free and there is no cost or obligation to you.

    • Intevac, Inc. (Nasdaq: IVAC), relating to the proposed merger with Seagate Technology Holdings plc. Under the terms of the agreement, Seagate will acquire Intevac in an all-cash transaction for $4.00 per share.

    ACT NOW. The Tender Offer expires on March 28, 2025.

    Click here for more https://monteverdelaw.com/case/intevac-inc-ivac/. It is free and there is no cost or obligation to you.

    NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

    1. Do you file class actions and go to Court?
    2. When was the last time you recovered money for shareholders?
    3. What cases did you recover money in and how much?

    About Monteverde & Associates PC

    Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

    No company, director or officer is above the law. If you own common stock in any of the above listed companies and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at jmonteverde@monteverdelaw.com or by telephone at (212) 971-1341.

    Contact:
    Juan Monteverde, Esq.
    MONTEVERDE & ASSOCIATES PC
    The Empire State Building
    350 Fifth Ave. Suite 4740
    New York, NY 10118
    United States of America
    jmonteverde@monteverdelaw.com
    Tel: (212) 971-1341

    Attorney Advertising. (C) 2025 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com).  Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network

  • MIL-OSI USA: British national indicted in organized multi-state fraud and money laundering scheme

    Source: US Immigration and Customs Enforcement

    PROVIDENCE, R.I. – A British national from Northern Ireland residing illegally in the United States has been indicted by a Rhode Island federal grand jury in for participating in a multi-state construction and money laundering fraud scheme uncovered by a U.S. Immigration and Customs Enforcement investigation. The scheme is alleged to have defrauded residents of several states of over $1 million.

    The indictment charges Elijah Gavin aka Timothy O’Reilly aka Elijah Thomas, 29, with wire fraud conspiracy, wire fraud, and money laundering.

    According to court documents, Gavin and other co-conspirators are purported to be associated with the so-called Traveling Conmen Fraud Group (Conmen Travelers), a group recognized by the FBI’s Terrorist Screen Center as a transnational organized crime group.

    Gavin and his co-conspirators allegedly defrauded property owners in Rhode Island, Massachusetts, New Jersey, and New York of more than over $1 million by misrepresenting to property owners who they were, the qualifications of their construction businesses, and construction needs or repairs required on properties. Co-conspirators billed property owners and collected funds for equipment that was not needed or used.

    The victims of this scheme included a 78-year-old Rhode Island woman who was fraudulently induced to pay over $850,000 for unnecessary foundation and basement repairs, including in checks written to Gavin and others.    

    Money collected through this conspiracy was deposited into bank accounts controlled by co-conspirators or transferred to other individuals who laundered the fraudulently obtained funds.

    Gavin last entered the United States lawfully in 2022 but did not comply with the terms of his admission. He is currently wanted on local charges in the U.K. Gavin has been detained in criminal federal custody since his arrest in New Jersey on January 29. Arraignment is scheduled for March 10, 2025, at the U.S. District Court in Providence.

    A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.          

    The matter is being investigated by ICE, the Rhode Island State Police, and U.S Diplomatic Security Service.

    Members of the public can report crimes and suspicious activity by dialing 866-DHS-2-ICE (866-347-2423) or completing the online tip form.

    MIL OSI USA News

  • MIL-OSI USA: Former Lawyer Sentenced for Paying for Sex Acts with Cambodian Children

    Source: US State of California

    A Florida man was sentenced today to nine years in prison for paying a child in a foreign country to engage in a commercial sex act with him.

    According to court documents, Rugh James Cline, 44, a former Florida-licensed attorney of Tampa, travelled to Cambodia and paid four Cambodian children to engage in sex acts with him on multiple occasions. Additionally, when he was arrested in Cambodia, Cline was found to be in possession of a laptop containing hundreds of images of child sexual abuse material.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Sara C. Sweeney for the Middle District of Florida, and Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office made the announcement.

    The FBI investigated the case. The U.S. Department of State, Cambodian National Police, and Justice Department’s Office of International Affairs provided assistance.

    Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Ilyssa Spergel and Courtney Derry for the Middle District of Florida prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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, visit www.justice.gov/psc.

    MIL OSI USA News

  • MIL-OSI Security: Former Lawyer Sentenced for Paying for Sex Acts with Cambodian Children

    Source: United States Attorneys General

    A Florida man was sentenced today to nine years in prison for paying a child in a foreign country to engage in a commercial sex act with him.

    According to court documents, Rugh James Cline, 44, a former Florida-licensed attorney of Tampa, travelled to Cambodia and paid four Cambodian children to engage in sex acts with him on multiple occasions. Additionally, when he was arrested in Cambodia, Cline was found to be in possession of a laptop containing hundreds of images of child sexual abuse material.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Sara C. Sweeney for the Middle District of Florida, and Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office made the announcement.

    The FBI investigated the case. The U.S. Department of State, Cambodian National Police, and Justice Department’s Office of International Affairs provided assistance.

    Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Ilyssa Spergel and Courtney Derry for the Middle District of Florida prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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, visit www.justice.gov/psc.

    MIL Security OSI

  • MIL-OSI Security: Suburban Chicago Investment Advisor Charged With Swindling Clients

    Source: Office of United States Attorneys

    CHICAGO — A suburban Chicago investment advisor has been indicted on federal fraud charges for allegedly swindling clients by soliciting them to invest in nonexistent business opportunities.

    RALPH ROGERS III, also known as “Tres Rogers,” 62, of Batavia, Ill., is charged with six counts of wire fraud in an indictment returned Tuesday in U.S. District Court in Chicago.  Each count is punishable by up to 20 years in federal prison.  Arraignment in federal court has not yet been scheduled.

    According to the indictment, Rogers held himself out as an entrepreneur and investment advisor.  From 2021 to 2023, Rogers fraudulently obtained funds from multiple individuals by falsely promising that he would use his professional connections to invest their money in valuable business opportunities, including fiber optic cable installation, copper piping, a physical fitness recovery studio, and materials used to manufacture auto parts, the indictment states.  Instead of investing the funds as he had promised, Rogers used the money for his own personal benefit, including for travel, hotel rooms, jewelry, apparel, and gym fees, the indictment states.

    The indictment was announced by Morris Pasqual, Acting 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.  The government is represented by Assistant U.S. Attorney Kristin Pinkston.

    The public is reminded that an indictment 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

  • MIL-OSI: IDT Corporation Reports Record Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Record levels of gross profit +16%; income from operations +77%; Adjusted EBITDA*+56%

    GAAP EPS increased to $0.80 from $0.57; Non-GAAP EPS*increased to $0.84 from $0.67

    IDT raised its quarterly dividend 20% to 6 cents

    NEWARK, NJ, March 06, 2025 (GLOBE NEWSWIRE) — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, today reported results for its second quarter fiscal year 2025, the three months ended January 31, 2025.

    SECOND QUARTER HIGHLIGHTS

    (Throughout this release, unless otherwise noted, results for the second quarter of fiscal year 2025 (2Q25) are compared to the second quarter of fiscal year 2024 (2Q24). All earnings per share (EPS) and other ‘per share’ results are per diluted share.

    • Key Businesses / Segments
      • NRS
        • Recurring revenue**: +32% to $31.6 million;
        • Income from operations: +71% to $9.1 million;
        • Adjusted EBITDA: +65% to $10.1 million;
        • ‘Rule of 40’ score**: 55
      • BOSS Money / Fintech segment
        • BOSS Money transactions: +36% to 5.7 million;
        • BOSS Money revenue: +34% to $33.5 million;
        • Fintech segment gross profit: +35% to $21.7 million;
        • Fintech segment income from operations: increased to $3.1 million from a loss of $(0.7) million;
        • Fintech segment Adjusted EBITDA: increased to $3.9 million from a loss of $(12) thousand;
      • net2phone
        • Subscription revenue**: +9% to $21.0 million (+14% on a constant currency basis);
        • Income from operations: increased to $1.1 million from $0.4 million;
        • Adjusted EBITDA: +55% to $2.9 million;
      • Traditional Communications
        • Gross profit: +2% to $43.1 million;
        • Income from operations: +24% to $18.1 million;
        • Adjusted EBITDA: +19% to $20.2 million;
    • IDT Consolidated
      • Revenue: +2% to $303.3 million;
      • Gross profit (GP) / margin: GP +16% to $112 million; GP margin +420 bps to 37.0%;
      • Income from operations: +77% to $28.3 million;
      • Net income attributable to IDT: +41% to $20.3 million;
      • GAAP EPS: Increased to $0.80 from $0.57;
      • Non-GAAP net income: +26% to $21.3 million;
      • Non-GAAP EPS: Increased to $0.84 from $0.67;
      • Adjusted EBITDA: +56% to $34.0 million;
      • CapEx: +6% to $4.8 million;
      • Stock buyback: Repurchased 179,338 shares of IDT Class B common stock in market transactions during 2Q25 for $8.5 million at an average share price of $47.59;
      • Common stock dividend: IDT increased its quarterly dividend from $0.05 to $0.06.

    REMARKS BY SHMUEL JONAS, CEO

    “IDT had a strong second quarter led by NRS and BOSS Money, and supported by robust results from our Traditional Communications segment, which increased its cash generation for the third consecutive quarter. On a consolidated basis, we again generated record levels of gross profit, income from operations, and Adjusted EBITDA.

    “NRS continued to deepen its penetration of the independent retailer market. We are now launching new features and functionalities that increase the value of our solution for retailers and will help us to drive additional growth.

    “BOSS Money delivered another quarter of strong year-over-year transaction and revenue growth. In the second quarter, we continued to focus on improving the margin contribution, particularly in our retail channel, and that effort helped to boost our Fintech segment’s gross profit and Adjusted EBITDA less CapEx to record levels.

    “net2phone continued its expansion led by further growth in the U.S. market. We are especially excited about last week’s launch of net2phone’s virtual AI agent. It has been very well received by our internal BOSS and NRS teams that are using it with great success to enhance the quality and consistency of customer interactions while reducing costs. We are confident that net2phone clients will find that it provides them with great value right out of the gate. Moreover, as they build with our AI agent, it will provide clients with increasingly sophisticated, tailored solutions that add value across disparate functions within their organizations.

    “Our Traditional Communications segment increased Adjusted EBITDA for the third sequential quarter and surpassed $20 million for the first time since fiscal 2022.

    “In light of our solid financial position and positive outlook, and mindful of the feedback we’ve received from our investors, we stepped up our repurchases of stock during the second quarter and have increased our regular quarterly dividend by 20%.”

    2Q25 RESULTS BY SEGMENT

    (For all periods presented, capital expenditures (CapEx), previously provided on a consolidated basis, is now also provided for each business segment.)

    National Retail Solutions (NRS)

    National Retail Solutions (NRS)
    (Terminals and accounts at end of period. $ in millions, except for average revenue per terminal)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ)  
    Terminals and payment processing accounts                                
    Active POS terminals     34,800       33,100       28,700       +21 %
    Payment processing accounts     23,900       22,700       18,200       +32 %
                                     
    Recurring revenue                                
     Merchant Services & Other   $ 18.1     $ 17.2     $ 12.5       +45 %
     Advertising & Data   $ 10.0     $ 8.5     $ 8.7       +15 %
     SaaS Fees   $ 3.5     $ 3.3     $ 2.7       +30 %
    Total recurring revenue   $ 31.6     $ 28.9     $ 23.9       +32 %
     POS terminal sales   $ 1.3     $ 1.4     $ 1.3       +2 %
    Total revenue   $ 33.0     $ 30.4     $ 25.2       +31 %
                                     
    Monthly average recurring revenue per terminal**   $ 310     $ 295     $ 285       +9 %
                                     
    Gross profit   $ 30.3     $ 27.6     $ 22.5       +35 %
    Gross profit margin     91.8 %     91.0 %     89.1 %     +270 bps
    Technology & development   $ 2.2     $ 2.0     $ 1.9       +14 %
    SG&A   $ 19.0     $ 19.0     $ 15.2       +25 %
    Income from operations   $ 9.1     $ 6.6     $ 5.3       +71 %
    Adjusted EBITDA   $ 10.1     $ 7.6     $ 6.1       +65 %
    CapEx   $ 0.9     $ 1.2     $ 1.0       (4 )%
                                     

    NRS Take-Aways / Updates:

    • NRS added approximately 1,700 net active terminals and approximately 1,200 net payment processing accounts during 2Q25. Net active terminal additions included the impact of approximately 300 terminals operating in seasonal stores that suspended operations following the quarter close.
    • The 45% year-over-year increase in Merchant Services & Other revenue was driven by the growth in payment processing accounts, and higher merchant services revenue per account, driven in part by the increased percentage of retail transactions paid with a credit or debit card.
    • The 30% year-over-year increase in SaaS Fees revenue reflects the growth of net active terminals and migration of retailers to premium SaaS plans.

    Fintech

    Fintech
    (Transactions in millions. $ in millions, except for average revenue per transaction)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ, $)  
    BOSS Money transactions     5.7       5.6       4.2       +36 %
                                     
    Fintech Revenue                                
    BOSS Money   $ 33.5     $ 33.7     $ 25.0       +34 %
    Other   $ 3.3     $ 3.4     $ 2.9       +13 %
    Total Revenue   $ 36.8     $ 37.1     $ 28.0       +32 %
                                     
    Average revenue per BOSS Money transaction**   $ 5.87     $ 6.01     $ 5.98     $ (0.11 )
                                     
    Gross profit   $ 21.7     $ 21.6     $ 16.1       +35 %
    Gross profit margin     58.9 %     58.2 %     57.5 %     140 bps
    Technology & development   $ 2.3     $ 2.3     $ 2.5       (8 )%
    SG&A   $ 16.3     $ 16.1     $ 14.3       +14 %
    Income (loss) from operations   $ 3.1     $ 3.2     $ (0.7 )     +$3.8  
    Adjusted EBITDA   $ 3.9     $ 4.0     $ 0       +$3.9  
    CapEx   $ 0.8     $ 1.1     $ 0.8       +1 %
                                     

    Fintech Take-Aways:

    • The 36% increase in BOSS Money transactions reflected a 40% year-over-year increase in digital transactions and a 22% increase in retail transactions.
    • BOSS Money revenue increased 34% year-over-year driven by a 38% year-over-year increase in digital channel revenue. The 1% sequential decrease in revenue reflected BOSS Money’s continued focus on expanding per-transaction margins, particularly at retail, which boosted gross profit while dampening transaction volume growth and revenue.
    • The strong increases in the Fintech segment’s income from operations and Adjusted EBITDA were driven by BOSS Money revenue growth, higher margins on BOSS Money transactions and improved operating leverage as the business continues to scale.
    • BOSS Money continued to expand to new destinations during 2Q25 (Venezuela and Eritrea) with Brazil expected to come online in 3Q25. BOSS Money also launched debit card payment capabilities at BOSS Money retailers across the U.S. and continued to build out its already extensive payout network in key destination markets.

    net2phone

    net2phone
    (Seats in thousands at end of period. $ in millions)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ, $)  
    Seats**     410       406       375       +9 %
                                     
    Revenue                                
    Subscription revenue   $ 21.0     $ 21.0     $ 19.3       +9 %
    Other revenue   $ 0.5     $ 0.6     $ 1.0       (54 )%
    Total Revenue   $ 21.5     $ 21.6     $ 20.4       +6 %
                                     
    Gross profit   $ 17.0     $ 17.1     $ 16.1       +6 %
    Gross profit margin     79.2 %     79.0 %     78.9 %     20 bps
    Technology & development   $ 2.8     $ 3.0     $ 2.6       +5 %
    SG&A   $ 13.0     $ 13.1     $ 13.1       (1 )%
    Income from operations   $ 1.1     $ 1.0     $ 0.4       +201 %
    Adjusted EBITDA   $ 2.9     $ 2.5     $ 1.8       +55 %
    CapEx   $ 1.8     $ 1.6     $ 1.4       +28 %
     

    net2phone Take-Aways:

    • The 9% year over year increase in total seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico. CCaaS seats served increased by 10% year-over year.
    • Subscription revenue increased by 9% year-over-year. The increase reflected net seat growth and increased subscription revenue per seat** in the U.S., offset by the negative FX impact of a strengthened U.S. dollar versus local currencies in net2phone’s key Latin American markets. On a constant currency basis, subscription revenue increased by 14% year over year.
    • Operating margin** increased to 5% from 2% in 2Q24, and Adjusted EBITDA margin** increased to 13% from 9% in 2Q24. Additional steady margin improvement remains a key strategic focus.
    • Following the quarter close, net2phone launched its AI agent, a scalable virtual assistant providing exceptional customer experiences across sales, support, and administrative tasks.

    Traditional Communications

    Traditional Communications
    ($ in millions)
          2Q25       1Q25       2Q24       2Q25-2Q24 (% Δ)  
    Revenue                                
    IDT Digital Payments   $ 101.6     $ 105.1     $ 99.7       +2 %
    BOSS Revolution   $ 53.3     $ 56.8     $ 66.7       (20 )%
    IDT Global   $ 51.3     $ 52.4     $ 48.7       +5 %
    Other   $ 5.9     $ 6.2     $ 7.5       (22 )%
    Total Revenue   $ 212.0     $ 220.5     $ 222.5       (5 )%
                                     
    Gross profit   $ 43.1     $ 41.3     $ 42.3       +2 %
    Gross profit margin     20.3 %     18.8 %     19.0 %     +130 bps
    Technology & development   $ 5.4     $ 5.5     $ 5.9       (9 )%
    SG&A   $ 19.4     $ 20.0     $ 21.4       (9 )%
    Income from operations   $ 18.1     $ 15.7     $ 14.6       +24 %
    Adjusted EBITDA   $ 20.2     $ 17.8     $ 17.0       +19 %
    CapEx   $ 1.2     $ 1.4     $ 1.4       (8 )%
                                     

    Take-Aways: 

    • IDT Global continues to mitigate the impacts of the ongoing industry-wide declines in paid-minute voice through a traffic mix shift to higher margin routes, new service offerings, and operational efficiencies.
    • For the third consecutive quarter, Traditional Communications’ income from operations and Adjusted EBITDA both increased sequentially. In 2Q25, the increases were driven by increasing gross profit contributions from each of the three major lines of business, as well as by continued efforts to streamline operations and remove costs.

    OTHER FINANCIAL RESULTS

    Consolidated results for all periods presented include corporate overhead. In 2Q25, Corporate G&A expense decreased to $3.0 million from $3.2 million in 2Q24.

    As of January 31, 2025, IDT held $171.1 million in cash, cash equivalents, debt securities, and current equity investments. Also at January 31, 2025, current assets totaled $462.1 million and current liabilities totaled $278.2 million. The Company had no outstanding debt at the quarter end.

    Net cash provided by operating activities decreased to $20.2 million in 2Q25 from $28.4 million in 2Q24. Exclusive of changes in customer funds deposits at IDT’s Fintech segment, net cash provided by operating activities decreased to $7.3 million in 2Q25 from $25.4 million in 2Q24. This decrease predominantly reflects the timing of payments made by IDT to cover anticipated BOSS Money disbursement prefunding.

    Capital expenditures increased to $4.8 million in 2Q25 from $4.6 million in 2Q24.

    IDT EARNINGS ANNOUNCEMENT INFORMATION

    This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.

    IDT will host an earnings conference call beginning at 5:30 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the US) or 1-973-528-0011 (international) and provide the following access code: 145736.

    A replay of the conference call will be available approximately three hours after the call concludes through March 20, 2025. To access the call replay, dial 1-877-481-4010 (toll-free from the US) or 1-919-882-2331 (international) and provide this replay passcode: 51975. The replay will also be accessible via streaming audio at the IDT investor relations website.

    NOTES

    *Adjusted EBITDA and Non-GAAP EPS are Non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. Please refer to the Reconciliation of Non-GAAP Financial Measures later in this release for an explanation of these terms and their respective reconciliations to the most directly comparable GAAP measures.

    **See ‘Explanation of Key Performance Metrics’ at the end of this release.

    ABOUT IDT CORPORATION

    IDT Corporation (NYSE: IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

    All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

    CONTACT

    IDT Corporation Investor Relations
    Bill Ulrey
    william.ulrey@idt.net
    973-438-3838

    IDT CORPORATION
    CONSOLIDATED BALANCE SHEETS

        January 31,
    2025
        July 31,
    2024
     
        (Unaudited)        
        (in thousands, except per share data)  
    Assets            
    Current assets:                
    Cash and cash equivalents   $ 142,152     $ 164,557  
    Restricted cash and cash equivalents     105,554       90,899  
    Debt securities     23,852       23,438  
    Equity investments     5,091       5,009  
    Trade accounts receivable, net of allowance for credit losses of $7,295 at January 31, 2025 and $6,352 at July 31, 2024     45,127       42,215  
    Settlement assets, net of reserve of $1,804 at January 31, 2025 and $1,866 at July 31, 2024     41,779       22,186  
    Disbursement prefunding     57,676       30,736  
    Prepaid expenses     15,989       17,558  
    Other current assets     24,914       25,927  
    Total current assets     462,134       422,525  
    Property, plant, and equipment, net     38,380       38,652  
    Goodwill     26,149       26,288  
    Other intangibles, net     5,583       6,285  
    Equity investments     6,748       6,518  
    Operating lease right-of-use assets     2,498       3,273  
    Deferred income tax assets, net     22,333       35,008  
    Other assets     11,903       11,546  
    Total assets   $ 575,728     $ 550,095  
    Liabilities, redeemable noncontrolling interest, and equity                
    Current liabilities:                
    Trade accounts payable   $ 22,482     $ 24,773  
    Accrued expenses     89,472       103,176  
    Deferred revenue     28,384       30,364  
    Customer funds deposits     104,720       91,893  
    Settlement liabilities     16,975       12,764  
    Other current liabilities     16,157       16,374  
    Total current liabilities     278,190       279,344  
    Operating lease liabilities     1,349       1,533  
    Other liabilities     1,093       2,662  
                     
    Total liabilities     280,632       283,539  
    Commitments and contingencies                
    Redeemable noncontrolling interest     11,228       10,901  
    Equity:                
    IDT Corporation stockholders’ equity:                
    Preferred stock, $.01 par value; authorized shares—10,000; no shares issued            
    Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at January 31, 2025 and July 31, 2024     33       33  
    Class B common stock, $.01 par value; authorized shares—200,000; 28,233 and 28,177 shares issued and 23,491 and 23,684 shares outstanding at January 31, 2025 and July 31, 2024, respectively     282       282  
    Additional paid-in capital     306,781       303,510  
    Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,742 and 4,493 shares of Class B common stock at January 31, 2025 and July 31, 2024, respectively     (137,475 )     (126,080 )
    Accumulated other comprehensive loss     (19,599 )     (18,142 )
    Retained earnings     121,573       86,580  
    Total IDT Corporation stockholders’ equity     271,595       246,183  
    Noncontrolling interests     12,273       9,472  
    Total equity     283,868       255,655  
    Total liabilities, redeemable noncontrolling interest, and equity   $ 575,728     $ 550,095  

    IDT CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

        Three Months Ended
    January 31,
        Six Months Ended
    January 31,
     
        2025     2024     2025     2024  
        (in thousands, except per share data)  
           
    Revenues   $ 303,349     $ 296,098     $ 612,915     $ 597,302  
    Direct cost of revenues     191,239       199,171       393,178       406,382  
    Gross profit     112,110       96,927       219,737       190,920  
    Operating expenses (gain):                                
    Selling, general and administrative (i)     70,721       67,346       141,772       131,723  
    Technology and development (i)     12,612       12,925       25,372       25,335  
    Severance     233       345       410       869  
    Other operating expense (gain), net     227       294       227       (190 )
    Total operating expenses     83,793       80,910       167,781       157,737  
    Income from operations     28,317       16,017       51,956       33,183  
    Interest income, net     1,354       1,195       2,782       2,039  
    Other income (expense), net     207       2,534       (76 )     (3,053 )
    Income before income taxes     29,878       19,746       54,662       32,169  
    Provision for income taxes     (7,665 )     (3,992 )     (13,967 )     (7,939 )
    Net income     22,213       15,754       40,695       24,230  
    Net income attributable to noncontrolling interests     (1,944 )     (1,329 )     (3,178 )     (2,146 )
    Net income attributable to IDT Corporation   $ 20,269     $ 14,425     $ 37,517     $ 22,084  
    Earnings per share attributable to IDT Corporation common stockholders:                                
    Basic   $ 0.81     $ 0.57     $ 1.49     $ 0.88  
    Diluted   $ 0.80     $ 0.57     $ 1.48     $ 0.87  
    Weighted-average number of shares used in calculation of earnings per share:                                
    Basic     25,161       25,175       25,182       25,176  
    Diluted     25,324       25,317       25,343       25,297  
    (i) Stock-based compensation included in:                                
    Selling, general and administrative expense   $ 768     $ 2,357     $ 1,602     $ 2,998  
    Technology and development expense   $ 95     $ 130     $ 172     $ 260  


    IDT CORPORATION 

    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

        Six Months Ended
    January 31,
     
        2025     2024  
        (in thousands)  
    Operating activities                
    Net income   $ 40,695     $ 24,230  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     10,490       10,146  
    Deferred income taxes     12,674       5,787  
    Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets     2,472       1,696  
    Stock-based compensation     1,774       3,258  
    Other     1,077       2,829  
    Changes in assets and liabilities:                
    Trade accounts receivable     (4,978 )     (7,040 )
    Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets     (46,244 )     9,966  
    Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities     (11,844 )     (6,200 )
    Customer funds deposits     15,701       15  
    Deferred revenue     (1,500 )     (1,381 )
    Net cash provided by operating activities     20,317       43,306  
    Investing activities                
    Capital expenditures     (10,100 )     (8,885 )
    Purchase of convertible preferred stock in equity method investment     (673 )     (1,009 )
    Purchases of debt securities and equity investments     (15,997 )     (19,357 )
    Proceeds from maturities and sales of debt securities and redemption of equity investments     16,751       31,231  
    Net cash (used in) provided by investing activities     (10,019 )     1,980  
    Financing activities                
    Dividends paid     (2,524 )      
    Distributions to noncontrolling interests     (50 )     (59 )
    Proceeds from borrowings under revolving credit facility     24,534       30,588  
    Repayment of borrowings under revolving credit facility     (24,534 )     (30,588 )
    Purchase of restricted shares of net2phone common stock           (3,558 )
    Proceeds from exercise of stock options           172  
    Repurchases of Class B common stock     (11,395 )     (3,170 )
    Net cash used in financing activities     (13,969 )     (6,615 )
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents     (4,079 )     (3,182 )
    Net (decrease) increase in cash, cash equivalents, and restricted cash and cash equivalents     (7,750 )     35,489  
    Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period     255,456       198,823  
    Cash, cash equivalents, and restricted cash and cash equivalents at end of period   $ 247,706     $ 234,312  
    Supplemental Schedule of Non-Cash Financing Activities                
    Shares of the Company’s Class B common stock issued to an executive officer for bonus payment   $ 1,824     $  
    Value of the Company’s Class B common stock exchanged for National Retail Solutions shares   $     $ 6,254  


    *
    Reconciliation of Non-GAAP Financial Measures for the Second Quarter Fiscal 2025 and 2024

    In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed for 2Q25, 1Q25, and 2Q24, Adjusted EBITDA, and for 2Q25 and 2Q24, non-GAAP earnings per diluted share (Non-GAAP EPS). Adjusted EBITDA and Non-GAAP EPS are non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. The following explains these terms and their respective reconciliations to the most directly comparable GAAP measures

    Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

    IDT’s measure of Non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2025 and fiscal 2024 periods.

    Management believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allows for greater transparency to the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

    Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

    While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

    Severance expense is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

    Other operating (expense) gain, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Other operating (expense) gain, net includes, among other items, legal fees net of insurance claims related to Straight Path Communications Inc.’s stockholders’ class action and gain from the write-off of a contingent consideration liability. From time-to-time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

    Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

    Adjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

    Following are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, income (loss) from operations for IDT’s reportable segments and net income for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted earnings per share.

    IDT Corporation
    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2025
    (2Q25)
                                                   
    Net income attributable to IDT Corporation   $ 20.3                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.9                                          
    Net income     22.2                                          
    Provision for income taxes     7.7                                          
    Income before income taxes     29.9                                          
     Interest income, net     (1.4 )                                        
     Other income, net     (0.2 )                                        
    Income (loss) from operations     28.3     $ 18.1     $ 1.1     $ 9.1     $ 3.1     $ (3.1 )
    Depreciation and amortization     5.2       1.9       1.6       1.0       0.8        
    Other operating expense, net     0.2             0.2                    
    Severance     0.2       0.2                          
    Adjusted EBITDA   $ 34.0     $ 20.2     $ 2.9     $ 10.1     $ 3.9     $ (3.1 )


    IDT Corporation

    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended October 31, 2024
    (1Q25)
                                                   
    Net income attributable to IDT Corporation   $ 17.2                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.2                                          
    Net income     18.5                                          
    Provision for income taxes     6.3                                          
    Income before income taxes     24.8                                          
     Interest income, net     (1.4 )                                        
     Other expense, net     0.3                                          
    Income (loss) from operations     23.6     $ 15.7     $ 1.0     $ 6.6     $ 3.2     $ (2.9 )
    Depreciation and amortization     5.2       2.0       1.6       1.0       0.7        
    Severance     0.2       0.2                          
    Adjusted EBITDA   $ 29.1     $ 17.8     $ 2.5     $ 7.6     $ 4.0     $ (2.9 )
        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2024
    (2Q24)
                                                   
    Net income attributable to IDT Corporation   $ 14.4                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.3                                          
    Net income     15.8                                          
    Provision for income taxes     4.0                                          
    Income before income taxes     19.7                                          
     Interest income, net     (1.2 )                                        
     Other income, net     (2.5 )                                        
    Income (loss) from operations     16.0     $ 14.6     $ 0.4     $ 5.3     $ (0.7 )   $ (3.6 )
    Depreciation and amortization     5.1       2.0       1.6       0.8       0.7        
    Severance     0.3       0.3                          
    Other operating expense (gain), net     0.3             (0.1 )                 0.4  
    Adjusted EBITDA   $ 21.8     $ 17.0     $ 1.8     $ 6.1     $     $ (3.2 )

    IDT Corporation
    Reconciliation of Earnings per share to Non-GAAP EPS
    (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

          2Q25       2Q24  
                     
    Net income attributable to IDT Corporation   $ 20.3     $ 14.4  
    Adjustments (add) subtract:                
    Stock-based compensation     (0.9 )     (2.5 )
    Severance expense     (0.2 )     (0.3 )
    Other operating expense, net     (0.2 )     (0.3 )
    Total adjustments     (1.3 )     (3.1 )
    Income tax effect of total adjustments     (0.3 )     (0.6 )
          1.0       2.5  
    Non-GAAP net income   $ 21.3     $ 16.9  
                     
    Earnings per share:                
    Basic   $ 0.81     $ 0.57  
    Total adjustments     0.03       0.10  
    Non-GAAP – basic   $ 0.84     $ 0.67  
                     
    Weighted-average number of shares used in calculation of basic earnings per share     25.2       25.2  
                     
    Diluted   $ 0.80     $ 0.57  
    Total adjustments     0.04       0.10  
    Non-GAAP – diluted   $ 0.84     $ 0.67  
                     
    Weighted-average number of shares used in calculation of diluted earnings per share     25.3       25.3  


    *
    *Explanation of Key Performance Metrics

    NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its revenue in accordance with GAAP. NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

    The NRS ‘Rule of 40’ score is a metric used to evaluate the performance of SaaS providers. It postulates that a SaaS company’s growth rate when added to its free cash flow rate should equal or exceed 40 percent. For NRS, the ‘Rule of 40’ result for 2Q25 is computed by adding the growth rate of NRS’ recurring revenue for 2Q25 compared to 2Q24 to NRS’ Adjusted EBITDA less CapEx as a percentage of total NRS revenue for the twelve months ended January 31, 2025. The ‘Rule of 40’ is a common SaaS industry metric to assess a company’s balance between growth and profitability. A total above 40 is thought to indicate a healthy combination of expansion and financial stability, making it a useful tool for investors and management to gauge the potential for long-term success and make informed decisions about resource allocation and business strategy.

    net2phone’s subscription revenue is calculated by subtracting net2phone’s equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil from its revenue in accordance with GAAP. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

    net2phone’s subscription revenue per seat is calculated by dividing net2phone’s subscription revenue, as defined in the preceding paragraph, by the average number of seats served during the period. The average number of seats served is calculated by adding the beginning and ending number of seats served and dividing by two. Subscription revenue per seat is the amount of revenue generated by each seat sold during the period. It provides a basis for pricing seat-based services, as well as for comparing performance in past periods and projecting future revenue, and for comparing the value of each seat served to competitors.

    net2phone’s operating margin is calculated by dividing GAAP income from operations by GAAP revenue for the period indicated. Operating margin measures the percentage that each dollar of revenue contributes to profitability. Operating margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future income from operations levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    net2phone’s Adjusted EBITDA margin is calculated by dividing net2phone’s Adjusted EBITDA, a Non-GAAP measure, by net2phone’s GAAP revenue for the comparable quarter or period. Adjusted EBITDA margin measures the percentage that each dollar of revenue contributes to profitability before interest, taxes, depreciation and amortization, and other adjustments as described in the Reconciliation of Non-GAAP Financial Measures. net2phone’s Adjusted EBITDA margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future Adjusted EBITDA levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    BOSS Money’s Average Revenue per Transaction is calculated by dividing BOSS Money’s revenue in accordance with GAAP by the number of transactions during the period. Average Revenue per Transaction is useful for comparisons of BOSS Money’s revenue per transaction to prior periods and to competitors and others in the market, as well as for forecasting future revenue based on transaction trends.

    # # #

    The MIL Network

  • MIL-OSI USA: Senator Markey, Leader Schumer, Senators Whitehouse and Van Hollen Call for Answers from Citibank on Climate Bank Funding Freeze

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey
       Letter Text (PDF)
    Washington (March 6, 2025) – Senator Edward J. Markey (D-Mass.), a member of the Environment and Public Works Committee and co-author of the original National Climate Bank Act with Senator Chris Van Hollen (D-Md.), a member of the Banking, Housing, and Urban Affairs Committee, together with Democratic Leader Chuck Schumer (D-N.Y.) and Senator Sheldon Whitehouse (D-R.I.), Ranking Member of the Environment and Public Works Committee, today called for answers from Jane Fraser, CEO of Citigroup, and Sunil Garg, CEO of Citibank North America (N.A.), on the reported freeze of federal investments made under the National Clean Investment Fund (NCIF) and Clean Communities Investment Accelerator (CCIA)—programs that are part of the Greenhouse Gas Reduction Fund (GGRF) and held in Citibank N.A accounts. The affected accounts contain legally obligated federal funds appropriated in the Inflation Reduction Act aimed at powering domestic investment in low-cost clean energy and energy efficiency. The freeze appears to relate to U.S. Environmental Protection Agency (EPA) Administrator Lee Zeldin’s desire to claw back these grants. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Banking, Housing, and Urban Affairs Committee, and Senator Jeff Merkley (D-Ore.), Ranking Member of the Senate Budget Committee, also signed the letter.
    In the letter the lawmakers write, “If public reporting and information obtained by Senate Environment and Public Works Committee Democrats is accurate, the federal funds in these accounts have been frozen for more than two weeks without explanation from either Citibank or the EPA. Without access to these funds, grantees will be hard pressed to cover basic operating expenses, such as payroll or rent, much less satisfy their mission of delivering cost-saving investments in underserved communities across the country. According to recent reporting, a prolonged account freeze may drive many of the nonprofit grantees to bankruptcy or default.”
    The lawmakers continued, “These reports suggest that Trump DOJ and EPA officials are trying to rescind the legally obligated funding at issue by fabricating claims of financial mismanagement and launching sham investigations.”
    The lawmakers request responses by March 15, 2025, to questions that include:
    What NCIF, CCIA, or GGRF grantee accounts have been paused, frozen, or closed by Citibank? When did Citibank pause, freeze, or close these accounts?
    Why did Citibank pause, freeze, or close grantee accounts? 
    If Citibank has paused, frozen, closed, or otherwise limited access to grantee accounts, what is the legal authority for doing so?
    Does Citibank have plans to resume grantees’ access to, or use of, their accounts and to the federal monies contained therein? 
    On February 24, 2025, Senator Markey joined Senator Whitehouse and all Democratic members of the Environment and Public Works Committee in a letter to EPA demanding answers about Administrator Lee Zeldin’s illegal efforts to claw back these federal investments in the Greenhouse Gas Reduction Fund. On February 19, 2025, Senator Markey led a letter with Senators Van Hollen, Whitehouse, and Bernie Sanders (I-Vt.) to the Department of Justice regarding the forced resignation of the head of the criminal division at the U.S. Attorney’s office in the District of Columbia, Denise Cheung, after she declined to pursue an unwarranted criminal investigation that would have frozen accounts with federal funds held at Citibank.
    Senator Markey secured numerous provisions in the Inflation Reduction Act, including the creation of a $27 billion national climate financing network based on his National Climate Bank Act. Following the passage of the Inflation Reduction Act in 2022, Senators Markey and Van Hollen and Congresswoman Debbie Dingell (MI-06), the House lead on the climate financing legislation, welcomed the launch of the Greenhouse Gas Reduction Fund in April 2023.

    MIL OSI USA News

  • MIL-OSI Security: Employee at Multinational DVD Company Charged with Stealing, Selling Pre-Release Commercial DVDs for Blockbuster Films

    Source: United States Attorneys General

    A worker at a DVD and Blu-ray manufacturing and distribution company used by major movie studios was arrested today in Memphis, Tennessee, for allegedly stealing DVDs and Blu-rays of blockbuster movies from the company and selling them before their official scheduled release dates. A digital copy of at least one of the stolen Blu-rays was illegally distributed tens of millions of times over the internet, causing the copyright owner tens of millions of dollars in losses.

    According to court documents, Steven R. Hale, 37, of Memphis, worked for a multinational company that, among other things, manufactured and distributed DVDs and Blu-rays of movies. From approximately February 2021 to March 2022, Hale allegedly stole numerous “pre-release” DVDs and Blu-rays, that is, discs being prepared for commercial distribution in the United States and not available for sale to the public. These included DVDs and Blu-rays for such popular films as “F9: The Fast Saga,” “Venom: Let There Be Carnage,” “Godzilla v. Kong,” “Shang-Chi and the Legend of the Ten Rings,” “Dune,” and “Black Widow.” Hale allegedly sold the DVDs and Blu-rays through e-commerce sites. At least one pre-release Blu-ray that Hale allegedly stole and sold, “Spider-Man: No Way Home,” was “ripped” — that is, extracted from the Blu-ray by bypassing the encryption that prevents unauthorized copying — and copied. That digital copy was then illegally made available over the internet more than a month before the Blu-ray’s official scheduled release date. Copies of “Spider-Man: No Way Home” were downloaded tens of millions of times, with an estimated loss to the copyright owner of tens of millions of dollars.

    The indictment, unsealed today, charges Hale with two counts of criminal copyright infringement and one count of interstate transportation of stolen goods. If convicted, he faces a maximum penalty of five years in prison on each criminal copyright infringement count and 10 years in prison on the interstate transportation of stolen goods count. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee, and Special Agent in Charge Joseph E. Carrico of the FBI Nashville Field Office made the announcement.

    The FBI is investigating the case.

    Senior Counsel Matthew A. Lamberti and Trial Attorney Debra Ireland of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Raney Irwin for the Western District of Tennessee are prosecuting the case.

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

    MIL Security OSI

  • MIL-OSI: Asure Announces Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    Reports Full Year 2024 Revenues of $119.8 million

    Full Year 2024 Recurring Revenues Grew 15% from Prior Year

    Recurring Revenues Grew to 96% of Total Revenues from 84% in the Prior Year

    AUSTIN, Texas, March 06, 2025 (GLOBE NEWSWIRE) — Asure Software, Inc. (“we”, “us”, “our”, “Asure” or the “Company”) (Nasdaq: ASUR), a leading provider of cloud-based Human Capital Management (“HCM”) software solutions, today reported results for the fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights

    • Revenue of $30.8 million, up 17% year over year, excluding ERTC revenue up 22% from prior year fourth quarter
    • Recurring revenue of $28.5 million, up 14% from prior year fourth quarter
    • Net loss of $3.2 million versus a net loss of $3.6 million during prior year fourth quarter
    • EBITDA (1) of $3.4 million versus $1.1 million from prior-year fourth quarter
    • Adjusted EBITDA (1) of $6.2 million, versus $2.8 million from prior-year fourth quarter
    • Gross profit of $20.9 million versus $17.8 million from prior-year fourth quarter
    • Non-GAAP gross profit (1) of $22.5 million (Non-GAAP gross margin (1) of 73%) versus $18.8 million (and 72% in prior-year fourth quarter)

    Full Year 2024 Financial Highlights

    • Revenue of $119.8 million increased slightly year over year, excluding ERTC revenue up 17% from prior year
    • Recurring revenue of $114.5 million up 15% from prior year
    • Net loss of $11.8 million versus prior year net loss of $9.2 million
    • EBITDA (1) of $11.4 million versus $14.3 million in the prior year
    • Adjusted EBITDA (1) of $22.5 million versus $23.3 million in the prior year
    • Gross profit of $82.1 million versus $85.5 million in the prior year
    • Non-GAAP gross profit (1) of $88.2 million versus $90.3 million in the prior year

    Recent Business Highlights

    • In January 2025 we signed a major multi-year agreement with an industry leader in audit, consulting, tax and advisory  services to resell our Payroll and Payroll Tax Management solutions. The multi-year agreement will deliver comprehensive payroll and payroll tax management services for the firm’s clients enabling them to offer these services for the first time. 
    • We announced the introduction of Luna, a groundbreaking AI agent designed to enhance payroll and HR management. Unlike traditional generative AI chatbots, Luna is an advanced AI agent that understands Asure’s suite of products, serves as an industry expert, and most importantly, can act on behalf of both employees through self-service and business owners and administrators.
    • Jay Whitehead joined Asure in January 2025 as Senior Vice President to lead our AsurePay™ Platinum VIP Banking card and Marketplace businesses. He is a seasoned entrepreneur, and HCM thought leader who we expect to drive innovation and foster strategic partnerships at Asure.

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management Commentary

    “We are pleased to report strong results for 2024, demonstrating the continued momentum of our business. Excluding the one-time impact of ERTC revenue, our fourth-quarter revenue grew 22% year-over-year, reaching $30.8 million—an impressive finish to the year. For the full year, total revenue increased modestly to $119.8 million, but when adjusted to exclude ERTC, our revenue growth was 17% year-over-year, underscoring the strength of our core business. Recurring revenue, the backbone of our model, grew 15% year-over-year and now represents 96% of total revenue, up from 84% in 2023. Additionally, our contracted revenue backlog continued to expand, providing further visibility into future growth,” said Asure Chairman and CEO Pat Goepel. 

    “Our performance in 2024 was particularly strong in key areas, including our Payroll Tax Management product, which drove several major multi-year agreements with enterprise clients. The success of this product, along with our growing backlog, reinforces the durability of our revenue streams and positions us well for the future.” 

    “We executed our strategy despite the anticipated headwind of replacing one-time ERTC revenue, and we are entering 2025 with a solid foundation for continued growth. Our plan for 2025 includes both organic and inorganic expansion, supported by the significant investments we’ve made in technology, operations, and new product development. With these improvements, we are confident in our ability to drive sustained, long-term growth.” 

    First Quarter 2025 and Full Year 2025 Revenue Guidance Ranges

    The Company is providing the following guidance for the first quarter 2025 and full year 2025 based on the Company’s year-to-date results and recent business trends. The guidance for our first quarter 2025 and the full year 2025 excludes any contribution from future potential acquisitions.

    Guidance for 2025

    Guidance Range   Q1-2025   FY-2025
    Revenue $ 33.0 M – 35.0 M $ 134.0 M -138.0 M
    Adjusted EBITDA(1) $ 6.0 M -7.0 M   23% -24%
             

    (1)This financial measure is not calculated in accordance with GAAP and is defined on page 3 of this press release. A reconciliation of this non-GAAP measure to the most applicable GAAP measure begins on page 11 of this release.

    Management uses GAAP, non-GAAP and adjusted measures when planning, monitoring, and evaluating the Company’s performance. The primary purpose of using non-GAAP and adjusted measures is to provide supplemental information that may prove useful to investors and to enable investors to evaluate the Company’s results in the same way management does.

    Management believes that supplementing GAAP disclosures with non-GAAP and adjusted disclosures provides investors with a more complete view of the Company’s operational performance and allows for meaningful period-to-period comparisons and analysis of trends in the Company’s business. Further, to the extent that other companies use similar methods in calculating adjusted financial measures, the provision of supplemental non-GAAP and adjusted information can allow for a comparison of the Company’s relative performance against other companies that also report non-GAAP and adjusted operating results.

    Management has not provided a reconciliation of guidance of GAAP to non-GAAP or adjusted disclosures because management is unable to predict the nature and materiality of non-recurring expenses without unreasonable effort.

    Management’s projections are based on management’s current beliefs and assumptions about the Company’s business, and the industry and the markets in which it operates; there are known and unknown risks and uncertainties associated with these projections. There can be no assurance that our actual results will not differ from the guidance set forth above. The Company assumes no obligation to update publicly any forward-looking statements, including its 2025 earnings guidance, whether as a result of new information, future events or otherwise. Please refer to the “Use of Forward-Looking Statements” disclosures on page 5 of this press release as well as the risk factors in our quarterly and annual reports on file with the Securities and Exchange Commission for more information about risk that affect our business and industry.

    Conference Call Details

    Asure management will host a conference call on Thursday, March 6, 2025, at 3:30 pm Central (4:30 pm Eastern). Asure Chairman and CEO Pat Goepel and CFO John Pence will participate in the conference call followed by a question-and-answer session. The conference call will be broadcast live and available for replay via the investor relations section of the Company’s website. Analysts may participate on the conference call by dialing 877-407-9219 or 201-689-8852.

    About Asure Software, Inc.

    Asure (Nasdaq: ASUR) provides cloud-based Human Capital Management (HCM) software solutions that assist organizations of all sizes in streamlining their HCM processes. Asure’s suite of HCM solutions includes HR, payroll, time and attendance, benefits administration, payroll tax management, and talent management. The company’s approach to HR compliance services incorporates AI technology to enhance scalability and efficiency while prioritizing client interactions. For more information, please visit www.asuresoftware.com

    Non-GAAP and Adjusted Financial Measures

    This press release includes information about non-GAAP gross profit, non-GAAP sales and marketing expense, non-GAAP general and administrative expense, non-GAAP research and development expense, EBITDA, EBITDA margin, adjusted EBITDA, and adjusted EBITDA margin. These non-GAAP and adjusted financial measures are measurements of financial performance that are not prepared in accordance with U.S. generally accepted accounting principles and computational methods may differ from those used by other companies. Non-GAAP and adjusted financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s Condensed Consolidated Financial Statements prepared in accordance with GAAP. Non-GAAP and adjusted financial measures are reconciled to GAAP in the tables set forth in this release and are subject to reclassifications to conform to current period presentations.

    Non-GAAP gross profit differs from gross profit in that it excludes amortization, share-based compensation, and one-time items.

    Non-GAAP sales and marketing expense differs from sales and marketing expense in that it excludes share-based compensation and one-time items.

    Non-GAAP general and administrative expense differs from general and administrative expense in that it excludes share-based compensation and one-time items.

    Non-GAAP research and development expense differs from research and development expense in that it excludes share-based compensation and one-time items.

    EBITDA differs from net income (loss) in that it excludes items such as interest, income taxes, depreciation, and amortization. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    Adjusted EBITDA differs from EBITDA in that it excludes share-based compensation, other income (expense), net and one-time expenses. Asure is unable to predict with reasonable certainty the ultimate outcome of these exclusions without unreasonable effort.

    All adjusted and non-GAAP measures presented as “margin” are computed by dividing the applicable adjusted financial measure by total revenue.

    Specifically, as applicable to the respective financial measure, management is adjusting for the following items when calculating non-GAAP and adjusted financial measures as applicable for the periods presented. No additional adjustments have been made for potential income tax effects of the adjustments based on the Company’s current and anticipated de minimis effective federal tax rate, resulting from the Company’s continued losses for federal tax purposes and its tax net operating loss balances.

    Share-Based Compensation Expenses. The Company’s compensation strategy includes the use of share-based compensation to attract and retain employees and executives. It is principally aimed at aligning their interests with those of our stockholders and at long-term employee retention, rather than to motivate or reward operational performance for any particular period. Thus, share-based compensation expense varies for reasons that are generally unrelated to operational decisions and performance in any particular period.

    Depreciation. The Company excludes depreciation of fixed assets. Also included in the expense is the depreciation of capitalized software costs.

    Amortization of Purchased Intangibles. The Company views amortization of acquisition-related intangible assets, such as the amortization of the cost associated with an acquired company’s research and development efforts, trade names, customer lists and customer relationships, and acquired lease intangibles, as items arising from pre-acquisition activities determined at the time of an acquisition. While these intangible assets are continually evaluated for impairment, amortization of the cost of purchased intangibles is a static expense, one that is not typically affected by operations during any particular period.

    Interest Expense, Net. The Company excludes accrued interest expense, the amortization of debt discounts and deferred financing costs.

    Income Taxes. The Company excludes income taxes, both at the federal and state levels.

    One-Time Expenses. The Company’s adjusted financial measures exclude the following costs to normalize comparable reporting periods, as these are generally non-recurring expenses that do not reflect the ongoing operational results. These items are typically not budgeted and are infrequent and unusual in nature.

    Settlements, Penalties and Interest. The Company excludes legal settlements, including separation agreements, penalties and interest that are generally one-time in nature and not reflective of the operational results of the business.

    Acquisition and Transaction Related Costs. The Company excludes these expenses as they are transaction costs and expenses that are generally one-time in nature and not reflective of the underlying operational results of our business. Examples of these types of expenses include legal, accounting, regulatory, other consulting services, severance and other employee costs.

    Other non-recurring Expenses. The Company excludes these as they are generally non-recurring items that are not reflective of the underlying operational results of the business and are generally not anticipated to recur. Some examples of these types of expenses, historically, have included write-offs or impairments of assets, demolition of office space and cybersecurity consultants.

    Other (Expense) Income, Net. The Company’s adjusted financial measures exclude Other (Expense) Income, Net because it includes items that are not reflective of the underlying operational results of the business, such as loan forgiveness, adjustments to contingent liabilities and credits earned as part of the CARES Act, passed by Congress in the wake of the coronavirus pandemic.

    Use of Forward-Looking Statements

    This press release contains certain statements made by management that may constitute “forward-looking” statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements about our financial results may include expected or projected U.S GAAP, non-U.S GAAP and other operating and non-operating results. The words “believe,” “may,” “will,” “estimate,” “projects,” “anticipate,” “intend,” “expect,” “should,” “plan,” and similar expressions are intended to identify forward-looking statements. Examples of “forward-looking statements” include statements regarding our strategy, future operations, financial condition, results of operations, projected costs, revenue growth, earnings, and plans and objectives of management. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. The achievement or success of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions, over many of which we have no control. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. Additionally, we are under no obligation to update any of the forward-looking statements after the date of this press release or to confirm such statements to actual results.

    The risks and uncertainties referred to above include—but are not limited to— risks associated with breaches of the Company’s security measures; risks related to material weaknesses; possible fluctuations in the Company’s financial and operating results; privacy concerns and laws and other regulations may limit the effectiveness of our applications; the financial and other impact of any previous and future acquisitions; domestic and international regulatory developments, including changes to or applicability to our business of privacy and data securities laws, money transmitter laws and anti-money laundering laws; regulatory pressures on economic relief enacted as a result of the COVID-19 pandemic that change or cause different interpretations with respect to eligibility for such programs; risk of our software and solutions not functioning adequately; interruptions, delays or changes in the Company’s services or the Company’s Web hosting; may incur debt to meet future capital requirements; volatility and weakness in bank and capital markets; access to additional capital; significant costs as a result of operating as a public company; the expiration of Employee Retention Tax Credits (“ERTC”) and the impact of the Internal Revenue Service recent measures regarding ERTC claims and the corresponding cash collections of existing receivables; the inability to continue to release timely updates for changes in laws; the inability to develop new and improved versions of the Company’s services and technological developments; customer’s nonrenewal of their agreements and other similar changes could negatively impact revenue, operating results and financial conditions; the exposure of market, interest, credit and liquidity risk on client funds held int rust; the Company’s operation in highlight competitive markets; risk that our clients could have insufficient funds that could result in limitations in the ability to transmit ACH transactions; impairment of intangible assets; litigation and any related claims, negotiations and settlements, including with respect to intellectual property matters or industry-specific regulations; various financial aspects of the Company’s Software-as-a-Service model; adverse effects to our business a result of claims, lawsuits, and other proceedings; issues in the use of artificial intelligence in our HCM products and services; adverse changes to financial accounting standards to the Company; inability to maintain third-party licensed software; evolving regulation of the Internet, changes in the infrastructure underlying the Internet or interruptions in Internet; factors affecting the Company’s deferred tax assets and ability to value and utilize them; the nature of the Company’s business model; inability to adopt new or correctly interpret existing money service and money transmitter business status; the Company’s ability to hire, retain and motivate employees and manage the Company’s growth; interruptions to supply chains and extended shut down of businesses; potential enactment of adverse tax laws, regulation, political, economic and social factors; potential sales of a substantial number of shares of our common stock along with its volatility; risks associate with potential equity-related transactions including dividends, rights under the stockholder plan to discourage certain actions and other impacts as a result of actions of our stockholders.

    Please review the Company’s risk factors in its annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 6, 2025.

    The forward-looking statements, including the financial guidance and 2025 outlook, contained in this press release represent the judgment of the Company as of the date of this press release, and the Company expressly disclaims any intent, obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in the Company’s expectations with regard to these forward looking statements or any change in events, conditions or circumstances on which any such statements are based. © 2025 Asure Software, Inc. All rights reserved

     
    ASURE SOFTWARE, INC.
    CONSOLIDATED BALANCE SHEETS
    (in thousands, except per share amounts)
           
      December 31, 2024   December 31, 2023
           
    ASSETS      
    Current assets:      
    Cash and cash equivalents $ 21,425     $ 30,317  
    Accounts receivable, net of allowance for credit losses of $6,328 and $4,787 at December 31, 2024 and December 31, 2023, respectively   18,154       14,202  
    Inventory   195       155  
    Prepaid expenses and other current assets   4,888       3,471  
    Total current assets before funds held for clients   44,662       48,145  
    Funds held for clients   192,615       219,075  
    Total current assets   237,277       267,220  
    Property and equipment, net   19,669       14,517  
    Goodwill   94,724       86,011  
    Intangible assets, net   69,114       62,082  
    Operating lease assets, net   4,041       4,991  
    Other assets, net   11,813       9,047  
    Total assets $ 436,638     $ 443,868  
    LIABILITIES AND STOCKHOLDERSEQUITY      
    Current liabilities:      
    Current portion of notes payable $ 7,008     $ 27  
    Accounts payable   1,364       2,570  
    Accrued compensation and benefits   4,485       6,519  
    Operating lease liabilities, current   1,438       1,490  
    Other accrued liabilities   6,600       3,862  
    Deferred revenue   8,363       6,853  
    Total current liabilities before client fund obligations   29,258       21,321  
    Client fund obligations   194,378       220,019  
    Total current liabilities   223,636       241,340  
    Long-term liabilities:      
    Deferred revenue   3,430       16  
    Deferred tax liability   2,612       1,728  
    Notes payable, net of current portion   5,709       4,282  
    Operating lease liabilities, noncurrent   3,578       4,638  
    Other liabilities   358       209  
    Total long-term liabilities   15,687       10,873  
    Total liabilities   239,323       252,213  
    Stockholders’ equity:      
    Preferred stock, $0.01 par value; 1,500 shares authorized; none issued or outstanding          
    Common stock, $0.01 par value; 44,000 shares authorized; 26,671 and 25,382 shares issued, 26,671 and 24,998 shares outstanding at December 31, 2024 and December 31, 2023, respectively   267       254  
    Treasury stock at cost, zero(1)and 384 shares at December 31, 2024 and December 31, 2023, respectively         (5,017 )
    Additional paid-in capital   504,849       487,973  
    Accumulated deficit   (307,226 )     (290,440 )
    Accumulated other comprehensive loss   (575 )     (1,115 )
    Total stockholders’ equity   197,315       191,655  
    Total liabilities and stockholders’ equity $ 436,638     $ 443,868  
    (1) The aggregate Treasury stock of prior repurchases of the Company’s own common stock was retired and subsequently issued effective January 1, 2024. See the Consolidated Statement of Changes in Stockholders’ Equity for the impact of this transaction.
     
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
    (in thousands, except per share amounts)
           
      Three Months Ended
    December 31,
      Twelve Months Ended
    December 31,
      2024   2023   2024   2023
                   
    Revenue:              
    Recurring $ 28,521     $ 24,985     $ 114,471     $ 99,734  
    Professional services, hardware and other   2,271       1,279       5,321       19,348  
    Total revenue   30,792       26,264       119,792       119,082  
    Cost of sales   9,864       8,425       37,685       33,545  
    Gross profit   20,928       17,839       82,107       85,537  
    Operating expenses:              
    Sales and marketing   6,945       6,422       28,316       28,734  
    General and administrative   9,940       9,747       40,499       39,333  
    Research and development   2,103       1,739       7,807       6,846  
    Amortization of intangible assets   4,432       3,694       16,222       13,623  
    Total operating expenses   23,420       21,602       92,844       88,536  
    Loss from operations   (2,492 )     (3,763 )     (10,737 )     (2,999 )
    Interest income   151       326       913       1,342  
    Interest expense   (362 )     (302 )     (1,024 )     (5,639 )
    Loss on extinguishment of debt                     (1,517 )
    Other income (expense), net   (2 )     (1 )     8       (292 )
    Loss from operations before income taxes   (2,705 )     (3,740 )     (10,840 )     (9,105 )
    Income tax expense (benefit)   499       (158 )     933       109  
    Net loss   (3,204 )     (3,582 )     (11,773 )     (9,214 )
    Other comprehensive income (loss):              
    Unrealized gain (loss) on marketable securities   (565 )     1,581       540       1,368  
    Comprehensive loss $ (3,769 )   $ (2,001 )   $ (11,233 )   $ (7,846 )
                   
    Basic and diluted loss per share              
    Basic $ (0.12 )   $ (0.14 )   $ (0.45 )   $ (0.42 )
    Diluted $ (0.12 )   $ (0.14 )   $ (0.45 )   $ (0.42 )
                   
    Weighted average basic and diluted shares              
    Basic   26,602       24,907       26,054       22,138  
    Diluted   26,602       24,907       26,054       22,138  
                                   
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
       
      Year Ended December 31,
      2024   2023
           
    Cash flows from operating activities:      
    Net loss $ (11,773 )   $ (9,214 )
    Adjustments to reconcile loss to net cash provided by operations:      
    Depreciation and amortization   22,142       19,135  
    Amortization of operating lease assets   1,386       1,481  
    Amortization of debt financing costs and discount   726       820  
    Non-cash interest expense   298       1,471  
    Net accretion of discounts and amortization of premiums on available-for-sale securities   (377 )     (119 )
    Provision for expected losses   46       2,047  
    Provision for deferred income taxes   884       225  
    Loss on extinguishment of debt         990  
    Net realized gains on sales of available-for-sale securities   (2,609 )     (2,257 )
    Share-based compensation   6,444       5,430  
    Loss on disposals of long-term assets         132  
    Change in fair value of contingent purchase consideration         175  
    Changes in operating assets and liabilities:      
    Accounts receivable   (3,998 )     (4,126 )
    Inventory   (41 )     97  
    Prepaid expenses and other assets   (1,886 )     5,101  
    Operating lease right-of-use assets         546  
    Accounts payable   (1,206 )     376  
    Accrued expenses and other long-term obligations   (1,103 )     87  
    Operating lease liabilities   (1,555 )     (1,118 )
    Deferred revenue   2,010       (2,379 )
    Net cash provided by operating activities   9,388       18,900  
    Cash flows from investing activities:      
    Acquisition of intangible assets   (13,256 )     (7,651 )
    Purchases of property and equipment   (692 )     (1,585 )
    Software capitalization costs   (10,187 )     (7,027 )
    Purchases of available-for-sale securities   (15,643 )     (27,647 )
    Proceeds from sales and maturities of available-for-sale securities   20,522       14,385  
    Net cash used in investing activities   (19,256 )     (29,525 )
    Cash flows from financing activities:      
    Proceeds from notes payable, net of issuance costs   4,995        
    Payments of notes payable   (420 )     (35,627 )
    Debt extinguishment costs         (250 )
    Net proceeds from issuance of common stock   1,370       46,800  
    Capital raise fees   (132 )     (338 )
    Payments made on amounts due for the acquisition of intangibles   (1,513 )     (311 )
    Net change in client fund obligations   (26,342 )     13,931  
    Net cash provided by (used in) financing activities   (22,042 )     24,205  
    Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash equivalents   (31,910 )     13,580  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period   177,622       164,042  
    Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 145,712     $ 177,622  
                   
     
    ASURE SOFTWARE, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)
    (in thousands)
       
      Year Ended December 31,
      2024
      2023
           
    Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents to the Consolidated Balance Sheets
    Cash and cash equivalents $ 21,425     $ 30,317  
    Restricted cash and restricted cash equivalents included in funds held for clients   124,287       147,305  
    Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 145,712     $ 177,622  
           
    Supplemental information:      
    Cash paid for interest $     $ 3,140  
    Cash paid for income taxes $ 18     $ 432  
           
    Non-cash investing and financing activities:      
    Acquisition of intangible assets $ 5,338     $ 357  
    Notes payable issued for acquisitions $ 3,107     $ 1,209  
    Shares issued for acquisitions $ 9,125     $ 2,543  
                   
     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES
    (unaudited)
                     
    (in thousands) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
    Revenue(1) $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064  
                     
    Gross Profit to non-GAAP Gross Profit                
    Gross Profit $ 20,928   $ 19,704   $ 18,868   $ 22,607   $ 17,839   $ 21,280   $ 22,018   $ 24,400  
    Gross Margin   68.0 %   67.2 %   67.3 %   71.4 %   67.9 %   72.5 %   72.4 %   73.8 %
                     
    Share-based Compensation   44     44     43     40     32     28     46     31  
    Depreciation   1,190     1,232     1,145     1,110     921     984     1,309     1,009  
    Amortization – intangibles   50     50     50     50     50     50     50     268  
    One-time expenses                
    Settlements, penalties & interest   25     2     3         (6 )   8         4  
    Acquisition and transaction costs   221     367     264     39                  
    Other non-recurring expenses   84                              
    Non-GAAP Gross Profit $ 22,542   $ 21,399   $ 20,373   $ 23,846   $ 18,836   $ 22,350   $ 23,423   $ 25,712  
    Non-GAAP Gross Margin   73.2 %   73.0 %   72.6 %   75.3 %   71.7 %   76.2 %   77.0 %   77.8 %
                     
    Sales and Marketing Expense to non-GAAP Sales and Marketing Expense
    Sales and Marketing Expense $ 6,945   $ 6,680   $ 6,924   $ 7,767   $ 6,422   $ 6,597   $ 8,515   $ 7,200  
                     
    Share-based Compensation   251     269     237     243     180     210     149     124  
    Depreciation       1         1     1              
    One-time expenses                
    Settlements, penalties & interest   78     (5 )   5     18     6     30     4     11  
    Acquisition and transaction costs   9     68     37     11                  
    Other non-recurring expenses   52                         180      
    Non-GAAP Sales and Marketing Expense $ 6,555   $ 6,347   $ 6,645   $ 7,494   $ 6,235   $ 6,357   $ 8,182   $ 7,065  
                     
    General and Administrative Expense to non-GAAP General and Administrative Expense
    General and Administrative Expense $ 9,940   $ 10,378   $ 10,118   $ 10,063   $ 9,747   $ 9,294   $ 10,336   $ 9,956  
                     
    Share-based Compensation   1,081     1,187     1,122     1,535     980     936     1,298     1,142  
    Depreciation   269     264     256     251     225     200     234     210  
    One-time expenses                
    Settlements, penalties & interest   142     377     304     98     284     101     432     102  
    Acquisition and transaction costs   282     371     245     57     51              
    Other non-recurring expenses   220     253         86     53         453      
    Non-GAAP General and Administrative Expense $ 7,946   $ 7,926   $ 8,191   $ 8,036   $ 8,154   $ 8,057   $ 7,919   $ 8,502  
                     
    Research and Development Expense to non-GAAP Research and Development Expense
    Research and Development Expense $ 2,103   $ 1,973   $ 1,962   $ 1,769   $ 1,739   $ 1,803   $ 1,325   $ 1,979  
                     
    Share-based Compensation   87     90     86     85     69     76     89     40  
    One-time expenses                
    Settlements, penalties & interest   21         27     31                  
    Acquisition and transaction costs   153     195     369     147                  
    Other non-recurring expenses   29                              
    Non-GAAP Research and Development Expense $ 1,813   $ 1,688   $ 1,480   $ 1,506   $ 1,670   $ 1,727   $ 1,236   $ 1,939  
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

     
    ASURE SOFTWARE, INC.
    RECONCILIATION OF NON-GAAP AND ADJUSTED FINANCIAL MEASURES (cont.)
    (unaudited)
                     
    (in thousands) Q4-24 Q3-24 Q2-24 Q1-24 Q4-23 Q3-23 Q2-23 Q1-23
    Revenue(1) $ 30,792   $ 29,304   $ 28,044   $ 31,652   $ 26,264   $ 29,334   $ 30,420   $ 33,064  
                     
    GAAP Net (Loss) Income to Adjusted EBITDA
    GAAP Net (Loss) Income $ (3,204 ) $ (3,901 ) $ (4,360 ) $ (308 ) $ (3,582 ) $ (2,206 ) $ (3,765 ) $ 339  
                     
    Interest expense, net   211     109     (53 )   (156 )   (24 )   782     1,593     1,944  
    Income taxes   499     170     231     33     (158 )   (123 )   627     (237 )
    Depreciation   1,460     1,497     1,402     1,361     1,148     1,185     1,542     1,219  
    Amortization – intangibles   4,482     4,345     4,096     3,499     3,743     3,384     3,343     3,570  
    EBITDA $ 3,448   $ 2,220   $ 1,316   $ 4,429   $ 1,127   $ 3,022   $ 3,340   $ 6,835  
    EBITDA Margin   11.2 %   7.6 %   4.7 %   14.0 %   4.3 %   10.3 %   11.0 %   20.7 %
                     
    Share-based Compensation   1,463     1,591     1,488     1,902     1,260     1,251     1,582     1,337  
    One Time Expenses                
    Settlements, penalties & interest   266     375     339     147     283     140     436     117  
    Acquisition and transaction costs   665     1,001     914     254     51              
    Other non-recurring expenses   385     253         86     53         633      
    Other expense (income), net   2             (10 )   1     1,800     93     (83 )
    Adjusted EBITDA $ 6,229   $ 5,440   $ 4,057   $ 6,808   $ 2,775   $ 6,213   $ 6,084   $ 8,206  
    Adjusted EBITDA Margin   20.2 %   18.6 %   14.5 %   21.5 %   10.6 %   21.2 %   20.0 %   24.8 %
                                                     

    (1)Note that first quarters are seasonally strong as recurring year-end W2/ACA revenue is recognized in this period.

    Investor Relations Contact
    Patrick McKillop
    Vice President, Investor Relations
    617-335-5058
    patrick.mckillop@asuresoftware.com 

    The MIL Network

  • MIL-OSI: Reliance Global Group Reports 2024 Results and Provides Business Update

    Source: GlobeNewswire (MIL-OSI)

    LAKEWOOD, N.J., March 06, 2025 (GLOBE NEWSWIRE) — Reliance Global Group, Inc. (Nasdaq: RELI) (“Reliance”, “we” or the “Company”) today provided a business update and reported financial results for the year ended December 31, 2024.

    “We are pleased to report continued revenue growth and strong operational execution in 2024,” said Ezra Beyman, Chairman and Chief Executive Officer of Reliance. “This year has been truly transformative for Reliance, driven by disciplined fiscal management, strategic investments in technology, and targeted acquisitions. Our OneFirm strategy has successfully integrated our agency operations into a unified, technology-driven platform, enhancing efficiency, reducing costs, and strengthening net operating results. These initiatives have significantly improved profitability and, we believe, positioned the Company for long-term, scalable growth in the evolving InsurTech landscape.”

    “Additionally, we believe the planned Spetner acquisition and the continued expansion of RELI Exchange’s AI-powered Quote & Bind platform are poised to drive significant value for the Company and its shareholders. Our Quote & Bind platform has revolutionized the insurance purchasing process, allowing agents to quickly generate competitive quotes and seamlessly bind policies in real time. By leveraging AI, automation, and advanced data analytics, we are enhancing efficiency, improving underwriting precision, and delivering superior service to our agents and their clients.”

    2024 Financial Highlights

    • Commission income revenue increased by $322,535, or 2%, to $14,054,361 in 2024, compared to $13,731,826 in 2023, attributed to sustained organic growth of our current in-place operations.
    • Commission expense increased by $456,660, or 12%, to $4,189,599 in 2024, compared to $3,732,939 in 2023, driven primarily by the Company’s commission income revenue mix.
    • Salaries and wages decreased by 4%, or $276,242, from $7,226,810 in 2024, versus $7,503,052 in 2023, demonstrating the Company’s ability to effectively leverage its talent (human capital) and continue to organically grow revenues.
    • General and administrative expenses increased nominally by $129,646, or 3%, to $4,219,635 in 2024, versus $4,089,989 in 2023, driven in part by acquisition related costs and general inflation, but offset by OneFirm efficiency enhancements.
    • Net loss decreased by $2,938,398, or 24%, to $9,071,584 in 2024, versus $12,009,982 in 2023. This positive swing is a result of less intangible impairment charges in the current year and the Company’s focus on streamlining its balance sheet which has previously been encumbered by certain fair value contingent and warrant liabilities that were liquidated or substantially reduced as of and for the year ended December 31, 2024, thus minimizing the impact of fair value swings affecting the Company’s profitability.
    • Adjusted EBITDA loss (“AEBITDA”), a non-GAAP financial measure, improved significantly during 2024, decreasing 39% or $205,573, from $(526,798) in 2023, to $(321,224) in 2024. This demonstrates the Company’s continued trend toward AEBITDA profitability, brought about through disciplined fiscal management and exciting organic operational growth.

    The Company also provided an update on its pending Spetner acquisition, which is in the final closing stages. Once closed, the acquisition is expected to expand Reliance’s insurance offerings, further strengthening its competitive position and enhancing its ability to serve a broader market with a more comprehensive suite of insurance solutions.

    Reliance has also expanded its RELI Exchange Quote & Bind platform, reinforcing its leadership in the InsurTech space. Initially launched in beta, the platform now includes more carriers and a broader range of insurance products, with further enhancements underway. Designed to streamline agent workflows, it enables instant quoting and policy binding, improving efficiency and accelerating policy issuance. AI-driven automation enhances underwriting accuracy, while access to top-tier carriers ensures competitive pricing and diverse coverage options.

    Moshe Fishman, Reliance’s Director of InsurTech and Operations, added “At Reliance, we are revolutionizing the insurance industry through cutting-edge technology and automation. With the continued expansion of our Quote & Bind platform, we are empowering agents with advanced tools that enhance efficiency, speed up deal closures, and maximize profitability. This initiative is a cornerstone of our strategy to make RELI Exchange the most comprehensive and accessible InsurTech solution in the industry.”

    Mr. Beyman concluded, “As we look ahead, the future for Reliance has never been brighter. With our disciplined approach to expansion, cutting-edge technology, and strategic acquisitions, we are well-positioned to capitalize on emerging opportunities in the rapidly evolving InsurTech landscape. The completion of the Spetner acquisition and the ongoing enhancements to our Quote & Bind platform are just the beginning of what we believe will be a period of unprecedented growth. We remain focused on innovation, operational excellence, and delivering superior service to our agents and customers. By staying true to our vision, we are confident in our ability to build Reliance into a highly profitable enterprise that generates sustainable long-term value for our shareholders. The momentum we have built in 2024 is only the foundation—we are excited for what lies ahead in 2025 and beyond.”

    Conference Call

    Reliance Global Group will host a conference call today at 4:30 PM Eastern Time to discuss the Company’s financial results for the fourth quarter and year ended December 31, 2024, as well as the Company’s corporate progress and other developments.

    The conference call will be available via telephone by dialing toll-free +1 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and entering access code 522829. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2381/52132 or on the investor relations section of the Company’s website, https://relianceglobalgroup.com/events-and-presentations/.

    A webcast replay will be available on the investor relations section of the Company’s website at https://relianceglobalgroup.com/events-and-presentations/ through March 6, 2026. A telephone replay of the call will be available approximately one hour following the call, through March 20, 2025, and can be accessed by dialing +1 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering access code 52132.

    About Reliance Global Group, Inc.

    Reliance Global Group, Inc. (NASDAQ: RELI) is an InsurTech pioneer, leveraging artificial intelligence (AI), and cloud-based technologies, to transform and improve efficiencies in the insurance agency/brokerage industry. The Company’s business-to-business InsurTech platform, RELI Exchange, provides independent insurance agencies an entire suite of business development tools, enabling them to effectively compete with large-scale national insurance agencies, whilst reducing back-office cost and burden. The Company’s business-to-consumer platform, 5minuteinsure.com, utilizes AI and data mining, to provide competitive online insurance quotes within minutes to everyday consumers seeking to purchase auto, home, and life insurance. In addition, the Company operates its own portfolio of select retail “brick and mortar” insurance agencies which are leaders and pioneers in their respective regions throughout the United States, offering a wide variety of insurance products. Further information about the Company can be found at https://www.relianceglobalgroup.com.

    Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. In some cases, forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions and include statements such as the Company having built a best-in-class InsurTech platform, making RELI Exchange an even more compelling value proposition and further accelerating growth of the platform, rolling out several other services in the near future to RELI Exchange agency partners, building RELI Exchange into the largest agency partner network in the U.S., the Company moving in the right direction and the Company’s highly scalable business model driving significant shareholder value. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere and risks as and uncertainties related to: the Company’s ability to generate the revenue anticipated and the ability to build the RELI Exchange into the largest agency partner network in the U.S., and the other factors described in the Company’s most recent Annual Report on Form 10-K, as the same may be updated from time to time. The foregoing review of important factors that could cause actual events to differ from expectations should not be construed as exhaustive and should be read in conjunction with statements that are included herein and elsewhere, including the risk factors included in the Company’s most recent Annual Report on Form 10-K, the Company’s Quarterly Reports on Form 10-Q, the Company’s Current Reports on Form 8-K and other filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

    Contact:

    Crescendo Communications, LLC
    Tel: +1 (212) 671-1020
    Email: RELI@crescendo-ir.com

    INFORMATION REGARDING A NON-GAAP FINANCIAL MEASURE

    The Company believes certain financial measures which meet the definition of non-GAAP financial measures, as defined in Regulation G of the SEC rules, provide important supplemental information. Namely our key financial performance metric Adjusted EBITDA (“AEBITDA”) is a non-GAAP financial measure that is not in accordance with, or an alternative to, measures prepared in accordance with GAAP. “AEBITDA” is defined as earnings before interest, taxes, depreciation, and amortization (EBITDA) with additional adjustments as further outlined below, to result in Adjusted EBITDA (“AEBITDA”). The Company considers AEBITDA an important financial metric because it provides a meaningful financial measure of the quality of the Company’s operational, cash impacted and recurring earnings and operating performance across reporting periods. Other companies may calculate Adjusted EBITDA differently than we do, which might limit its usefulness as a comparative measure to other companies in the industry. AEBITDA is used by management in addition to and in conjunction (and not as a substitute) with the results presented in accordance with GAAP. Management uses AEBITDA to evaluate the Company’s operational performance, including earnings across reporting periods and the merits for implementing cost-cutting measures. We have presented AEBITDA solely as supplemental disclosure because we believe it allows for a more complete analysis of results of operations and assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Consistent with Regulation G, a description of such information is provided below herein and tabular reconciliations of this supplemental non-GAAP financial information to our most comparable GAAP information are contained below.

    We exclude the following items when calculating Adjusted EBITDA, and the following items define our non-GAAP financial measure “AEBITDA”:

      Interest and related party interest expense: Unrelated to core Company operations and excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Depreciation and amortization: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Goodwill and/or asset impairments: Non-cash charge, excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Equity-based compensation: Non-cash compensation provided to employees and service providers, excluded to provide more meaningful supplemental information regarding the Company’s core cash impacted operational performance.
      Change in estimated acquisition earn-out payables: An earn-out liability is a liability to the seller upon an acquisition which is contingent on future earnings. These liabilities are valued at each reporting period and the changes are reported as either a gain or loss in the change in estimated acquisition earn-out payables account in the consolidated statements of operations. The gain or loss is non-cash, can be highly volatile and overall is not deemed relevant to ongoing operations, thus, it’s excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Recognition and change in fair value of warrant liabilities: This account includes changes to derivative warrant liabilities which are valued at each reporting period and could result in either a gain or loss. The period changes do not impact cash, can be highly volatile, and are unrelated to ongoing operations, and thus are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Other income (expense), net: Includes non-routine income or expenses and other individually de minimis items and is thus excluded as unrelated to core operations of the company.
      Transactional costs: This includes expenses related to mergers, acquisitions, financings and refinancings, and amendments or modification to indebtedness. Thes costs are unrelated to primary Company operations and are excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Non-standard costs: This account includes non-standard non-operational items, related to costs incurred for a legal suit the Company has filed against one of the third parties involved in the discontinued operations and was excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
      Loss from discontinued operations before tax: This account includes the net results from discontinued operations, and since discontinued, are unrelated to the Company’s ongoing operations and thus excluded to provide more meaningful supplemental information regarding the Company’s core operational performance.
         

    The following table provides a reconciliation from net loss to AEBITDA for the periods ended December 31, 2024 and 2023, respectively:

        December 31,
    2024
        December 31,
    2023
     
    Net loss   $ (9,071,584 )   $ (12,009,982 )
    Adjustments:                
    Interest and related party interest expense     1,583,610       1,656,253  
    Depreciation and amortization     1,786,068       2,609,191  
    Asset impairment     3,922,110        
    Goodwill impairment           7,594,000  
    Equity-based compensation employees, directors, and service providers     858,108       1,272,155  
    Change in estimated acquisition earn-out payables     47,761       1,716,873  
    Other income, net     (51,345 )     (6,530 )
    Transactional costs     636,494       101,500  
    Non-standard costs     123,554       58,675  
    Recognition and change in fair value of warrant liabilities     (156,000 )     (5,503,647 )
    Loss from discontinued operations before tax           1,984,714  
    Total adjustments     8,750,360       11,483,185  
                     
    AEBITDA   $ (321,224 )   $ (526,798 )

    The MIL Network

  • MIL-OSI USA: Risch Leads Bill to Protect Law-Abiding Gun Owners and Hold ATF Accountable

    US Senate News:

    Source: United States Senator for Idaho James E Risch
    WASHINGTON – U.S Senator Jim Risch (R-Idaho) introduced legislation today with U.S. Senators Mike Crapo (R-Idaho), Steve Daines (R-Mont.), Cindy Hyde-Smith (R-Miss.), James Lankford (R-Okla.), Cynthia Lummis (R-Wyo.), Roger Marshall (R-Kansas), and Tim Sheehy (R-Mont.) to improve the fairness, speed, and transparency of background checks and application processes for National Firearms Act (NFA) items. The ATF Transparency Act will ensure law-abiding gun owners experience a fair and speedy application process when exercising their Second Amendment rights.
    “Law-abiding gun owners wrongfully denied their Second Amendment rights should be able to appeal their case through an efficient, transparent process,” said Risch. “My ATF Transparency Act is simple. It codifies the current appeals process, holds the ATF to a higher standard, and gives Idaho’s lawful gun owners a faster, fairer process for firearm applications.”
    “Lawful gun owners should not be denied their constitutional right to own a firearm because of unchecked bureaucratic rulings,” Crapo said. “A more transparent review and appeals process for those improperly flagged by the ATF will give individuals the due process they rightly deserve.”
    “The Second Amendment is an integral part of our Montana way of life, and law-abiding citizens should not have to worry about their constitutional rights being denied because of a processing error,” said Daines.“This legislation will create a quick and transparent appeals process for Montanans who have been wrongfully flagged by the ATF, and I’ll continue to stand up for our right to keep and bear arms.”
    “No system is infallible, including the federal bureaucracy. The ATF Transparency Act would help ensure law-abiding Americans aren’t denied their Second Amendment rights due to mistakes in their background checks that may wrongfully prevent them from owning a firearm,” Hyde-Smith said. “I credit Senator Risch for leading the charge to fix this injustice.”
    “Unelected D.C. bureaucrats at the ATF should not be able to criminalize law-abiding gun owners nor throw up roadblocks for appealing unfair rulings,” said Lummis. “I’m proud to work with my Senate colleagues to bring much needed accountability and transparency to the ATF and enhance Americans’ constitutional right to bear arms.”
    “As a lifelong gun owner and supporter of the Second Amendment, I came to the Senate with the mission of protecting this sacred Constitutional right of all Kansans,” said Marshall. “The ATF Transparency Act furthers this mission by requiring the ATF to develop an appeals process to protect Americans’ background checks from being wrongfully denied. This is a commonsense step forward to safeguard the Second Amendment, and I am proud to stand alongside my colleagues in support.”
    The ATF Transparency Act has received support from Gun Owners of America and National Rifle Association.
    “Gun Owners of America is proud to endorse Sen. Risch’s legislation to eliminate ATF’s bureaucratic loopholes in the already unconstitutional National Firearms Act. ATF has deceived Congress and the American public with inaccurate NFA approval estimates for far too long. There is no reason that a NFA approval time should take longer than a normal background check, especially since ATF has shown they are able to rapidly approve forms after Congress instructed them to. A Right Delayed is a Right Denied” said Aidan Johnston, Director of Federal Affairs, Gun Owners of America.
    “The ATF Transparency Act is a crucial piece of legislation that will allow individuals the opportunity to appeal their denied application of National Firearms Act items. The ambiguity of denials is an issue that must be resolved and the NRA thanks and applauds Sen. Risch for reintroducing this important legislation and standing up for all Americans’ Second Amendment rights,” said John Commerford, Executive Director of the NRA Institute for Legislative Action.
    The ATF Transparency Act would:

    Codify the appeals process to protect law-abiding Americans’ background checks from being wrongfully denied;

    Require the ATF to process applications within 3 days. If the ATF fails to do so, applications will be automatically approved; and

    Requires the Government Accountability Office and DOJ to report on the number of NFA items involved in unresolved background checks, recommend ways to reduce unresolved checks, and report on the FBI’s National Instant Criminal Background Check System involvement.?

    MIL OSI USA News

  • MIL-OSI Security: Addiction Treatment Center Supervisor Sentenced in Scheme to Defraud Federal, State, and Private Health Care Insurers

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

    Insurers were billed for more full client sessions than could be provided in a 24-hour day

    PROVIDENCE, RI – A clinical social worker nicknamed by her co-workers as the “Five Minute Queen” who, at times, substituted a one or two sentence conversation for a billed 45-minute therapy session for her addicted patients has been sentenced to three years of supervised release, the first three months to be served in home detention with electronic monitoring, announced Acting United States Attorney Sara Miron Bloom.

    In pleading guilty in November 2023 to a charge of conspiracy to commit health care fraud, Mi Ok Song Bruining, 64, admitted that, while employed as a supervisor at Recovery Connections Centers of America, Inc. (RCCA) in Providence, she helped devise and execute a scheme that shortchanged Rhode Island and Massachusetts substance abuse disorder patients out of counseling and treatment services while, at the same time, defrauding Medicare, Medicaid, and other health insurers out of more than $3.5 million dollars.

    Bruining, and others working at her direction, routinely submitted false and fraudulent claims for psychotherapy and counseling services that did not occur for the length of time billed, consistently billing for far more patients than was possible for RCCA staff to have seen during office hours. Bruining, known at RCCA as the “Five Minute Queen” for her speed in seeing patients for so-called counseling sessions, billed for 45-minute sessions when she actually saw patients for no more than 5-10 minutes, at times asking patients only one question before she ended a session.

    According to information presented to the court, to facilitate this fraud, Ms. Bruining directed counselors and others at RCCA to record in their notes that they were providing counseling in 45-minute intervals, but without listing AM or PM for the start time. Ms. Bruining gave this instruction so that it was not clear that they were seeing more patients than possible within a single hour. She also instructed other counselors to copy and paste the last visit’s note into each entry to make the bill look complete. As a result, many of the patient notes for patients billed by RCCA were simply identical cut-and paste copies of the same note.

    Bruining was sentenced today by U.S. District Court Mary S. McElroy to three years of supervised release, the first three months to be served in home detention with electronic monitoring, 100 hours of community service, and to pay restitution in the amount of $100,000.

    The case was prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard.

    The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Office of the Attorney General for their assistance in the investigation.   

    ###

    MIL Security OSI

  • MIL-OSI Security: A Dozen Illegal Aliens Charged with Assaulting Federal Officers

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

    McALLEN, Texas – A federal grand jury has returned an indictment charging 12 illegal aliens for assaulting two federal correctional officers in January 2025, announced U.S. Attorney Nicholas J. Ganjei.

    All are expected to make their initial appearances before U.S. Magistrate Judge Juan F. Alanis at 9 a.m.

    Those charged include Mexican nationals Bryan Hernandez-Ruiz, 25, Francisco Antonio Hernandez-Mora, 27, Ivan Ramirez-Zapata, 40, Adrian David Guzman-Salas, 28, David Ramirez-Bautista, 21, Roberto Fabian Garza-Castaneda, 49, Jose Alberto Resendez-Hernandez, 27, Jose Ramos-Lerma, 45, Ruben Gonzalez-Balderas, 29, and Oscar Ambrocio Hernandez, 25, as well as Osman Joel Hernandez-Pavon, 22, and Roger Emmanuel Lemus, 42, both of Guatemala.

    The charges allege that all 12 men aided and abetted the assault of two federal corrections officers at the East Hidalgo Detention Center in La Villa.

    “The Department of Justice has zero tolerance for violence against law enforcement officers,” said Ganjei. “The grand jury has returned an indictment that alleges a serious attack on two corrections officers, and, rest assured, the Southern District of Texas will hold accountable all those found guilty.”

    If convicted, each face up to eight years in federal prison and a possible $250,000 maximum fine.

    All have been and will remain in custody.

    FBI and U.S. Marshals Service conducted the investigation. Assistant U.S. Attorneys Laura Garcia and Avery Benitez prosecuted the case.

    An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

    MIL Security OSI

  • MIL-OSI USA: 2 Mexican nationals, defendants in ICE cases secured in Arizona

    Source: US Immigration and Customs Enforcement

    PHOENIX, Ariz. – Two Mexican nationals who are targets of an ongoing U.S. Immigration and Customs Enforcement investigation appeared for their initial appearances Feb. 28, after they were secured from Mexico the previous day.

    Jose Bibiano Cabrera-Cabrera, 37 and Jesus Humberto Limon-Lopez, 43, were taken into U.S. custody after members of drug cartels were recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación, Cártel del Noreste, La Nueva Familia Michoacana, and Cártel de Golfo.

    These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.

    Limon-Lopez is charged with Continuing Criminal Enterprise; Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; Distribution of Methamphetamine; Distribution of Fentanyl; Distribution of Heroin; Distribution of Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

    Cabrera-Cabrera is charged with Conspiracy to Distribute Methamphetamine, Fentanyl, Heroin, and Cocaine; Conspiracy to Import Methamphetamine, Fentanyl, Heroin, and Cocaine; and Conspiracy to Unlawfully Export Firearms and Ammunition. He faces up to life imprisonment.

    An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

    The OCDETF Arizona Strike Force is comprised of agents and officers from Customs and Border Protection, the Department of Homeland Security, ICE Homeland Security Investigations, the Drug Enforcement Administration, FBI, the Internal Revenue Service, Criminal Investigations, the United States Marshals Service, the United States Postal Service, United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Arizona Army National Guard, the Maricopa County Sheriff’s Office, the Pima County Sheriff’s Office, and the Scottsdale Police Department.

    The prosecution is being handled by the United States Attorney Office for the District of Arizona.

    MIL OSI USA News

  • MIL-OSI Security: Eight Charged in North Charleston Public Corruption Schemes, Including Three City Councilmen

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

    CHARLESTON, S.C. — Eight people have been charged in federal court for a series of bribery, kickback, extortion, and money laundering schemes following a public corruption investigation in North Charleston. Three of the individuals charged are elected members of the North Charleston City Council.

    Four individuals have been charged by Information and have agreed to plead guilty:

    Jerome Sydney Heyward, 61, North Charleston City Councilmember;

    Sandino Savalas Moses, 50, North Charleston City Councilmember;

    Donavan Laval Moten, 46, founder of Core4Success Foundation; and

    Aaron Charles-Lee Hicks, 37, resident of North Charleston.

    A federal grand jury returned indictments against four others:

    Mike A. Brown, 46, North Charleston City Council Member;

    Hason Tatorian (“Tory”) Fields, 51, a Goose Creek resident;

    Rose Emily Lorenzo, 65, a North Carolina resident; and

    Michelle Stent-Hilton, 56, a North Charleston resident.

    Heyward is charged in three separate schemes with corruptly using his position as a North Charleston City Councilman to personally enrich himself through bribes, kickbacks, and extortion and to deprive the citizens and the government of North Charleston of their intangible right to the honest and faithful services of the North Charleston City Council. In the first scheme, Heyward extorted a businessman by soliciting payments in exchange for his official action as a City Councilman. In the second scheme, Heyward conspired with Mike A. Brown and Aaron Hicks to solicit and accept bribes from Aaron Hicks—working on behalf of a company with business before North Charleston City Council—in exchange for his support of the rezoning of the Baker Hospital site. In the third scheme, Heyward conspired with Donavan Moten, Rose Lorenzo, and Michelle Stent-Hilton to embezzle funds belonging to North Charleston by soliciting and accepting kickbacks from non-profit organizations run by Moten and Stent-Hilton that received violence reduction grant funds from the City.

    Heyward has agreed to plead guilty to: extortion under color of official right and using fear of economic harm; multiple counts of conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud; multiple counts of bribery with respect to programs receiving federal funds and honest services wire fraud; theft with respect to programs receiving federal funds; and multiple counts of money laundering. Heyward faces a maximum term of imprisonment of 20 years, a fine of $500,000, and a term of supervised release of three years. Heyward has agreed to cooperate with federal, state, and local law enforcement agencies.

    Mike A. Brown is charged with conspiring with Heyward and Hicks to commit bribery and honest services wire fraud. The indictment alleges that Mike A. Brown, while serving as a North Charleston City Councilmember, solicited and accepted bribes from Hicks—working on behalf of a company requesting the rezoning of the Baker Hospital site—in exchange for his support of the rezoning application. Mike A. Brown faces a maximum term of imprisonment of 20 years, a fine of $250,000, and a term of supervised release of three years. He will be arraigned on these charges in March.

    Aaron Hicks is charged with a conspiracy to pay bribes to Mike A. Brown and Jerome Heyward and a separate conspiracy with Hason Tatorian Fields to bribe Sandino Moses in exchange for their influence on North Charleston City Council and their support of the rezoning of the Baker Hospital site. Hicks has agreed to plead guilty to two counts of conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud; bribery with respect to programs receiving federal funds, and honest services wire fraud. Hicks has agreed to cooperate fully with federal, state, and local law enforcement agencies. Hicks faces a maximum term of imprisonment of 20 years, a fine of $250,000, and a term of supervised release of three years.

    Hason Tatorian (“Tory”) Fields is charged with conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, bribery with respect to programs receiving federal funds, and honest services wire fraud. The indictment alleges that Fields conspired with Hicks to pay bribes to Sandino Moses. Thereafter, Fields paid Moses two bribes in an attempt to influence him in connection with his official action regarding the rezoning of the Baker Hospital site. Fields faces a maximum term of imprisonment of 20 years, a fine of $250,000 and a term of supervised release of three years.

    Sandino Moses is charged with misprision of a felony. The Information alleges that Moses knew that Fields and others attempted to bribe him and paid him bribes but he failed to disclose that criminal conduct and instead took steps to conceal the bribes by returning the money to Fields. Moses has agreed to plead guilty and to cooperate fully with federal state and local law enforcement agencies. He faces a maximum term of imprisonment of three years, a fine of $250,000, and a maximum term of supervised release of one year.

    Donavan Laval Moten has agreed to plead guilty to conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, theft with respect to programs receiving federal funds, bribery with respect to programs receiving federal funds, honest services wire fraud, and money laundering. The information alleges that Moten conspired with Jerome Heyward and Rose Lorenzo to kick back a portion of funds that Moten’s nonprofit received from North Charleston to Heyward, who at the time was on North Charleston’s City Council. The indictment further alleges that after receiving the money from North Charleston, Moten laundered Heyward’s portion through Lorenzo. Moten has agreed to cooperate fully with federal, state, and local enforcement officials. Moten faces a maximum term of imprisonment of 20 years, a fine of $500,000 and a term of supervised release of three years.

    Michelle Stent-Hilton is charged with conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, theft with respect to programs receiving federal funds, bribery with respect to programs receiving federal funds, honest services wire fraud, and money laundering. The indictment alleges that Stent-Hilton, who is affiliated with a non-profit and served as Jerome Heyward’s personal assistant, promised to pay Heyward a portion of money the non-profit received from the city of North Charleston. At the time, Heyward was serving on North Charleston City Council and voted on the grant proposal to distribute funds to non-profits, including Stent-Hilton’s. The indictment further alleges that after receiving money from North Charleston, Stent-Hilton laundered Heyward’s kick back through Rose Lorenzo. Stent-Hilton faces a maximum term of imprisonment of 20 years, a fine of $500,000 and a term of supervised release of three years.

    Rose Emily Lorenzo is charged with conspiracy to commit bribery with respect to programs receiving federal funds and honest services wire fraud, theft with respect to programs receiving federal funds, bribery with respect to programs receiving federal funds, honest services wire fraud, and money laundering. The indictment alleges that Lorenzo conspired with Jerome Heyward and others to kick back a portion of City of North Charleston grant funds that were awarded to non-profits affiliated with Donavan Moten and Michelle Stent-Hilton to Heyward. The indictment further alleges that Lorenzo agreed to launder the funds by acting as an intermediary who received the funds from Moten and Stent-Hilton, and then wired them to Heyward for the purpose of concealing the true purpose of the transaction. Lorenzo faces a maximum term of imprisonment of 20 years, a fine of $500,000 and a term of supervised release of three years.

    Heyward, Moten, Hicks, and Moses are scheduled to plead guilty before the Honorable Richard M. Gergel on Friday, Feb. 28.

    “When elected officials take their oath of office, they make a sacred promise to the people they serve.  They pledge to uphold the law, to act with integrity, and to place the public interest above their own,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Public service should never merely be a job – it is a public trust. The allegations in this case describe a profound betrayal of that trust.”

    “Public corruption at any level of government cannot be tolerated,” said Steve Jensen Special Agent in Charge of the FBI Columbia Field Office. “Citizens have a right to expect honesty, fairness, and integrity from their leaders. The FBI, in collaboration with our law enforcement partners, is dedicated to aggressively investigating corruption and ensuring those responsible are held accountable.”

    “SLED Agents worked hand-in-hand with our federal partners to ensure that justice will be served,” said SLED Chief Mark Keel. “No matter who you are, or what position you hold, you will be held accountable for breaking the law. Elected officials and citizens should be working together to better their community, not exploiting others.”

    The case was investigated by the FBI Columbia Field Office and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse and Whit Sowards are prosecuting the case.

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

    ###

    MIL Security OSI

  • MIL-OSI Security: California Man Sentenced to 11 ½ Years for Role in California-to-Maine Drug Trafficking

    Source: Office of United States Attorneys

    Alex Hanna, others trafficked drugs mailed from Calif. to Downeast Maine

    BANGOR, Maine: A California man was sentenced today in U.S. District Court in Bangor for conspiring to distribute methamphetamine and money laundering.

    U.S. District Judge Stacey D. Neumann sentenced Alex Hanna, 31, to 138 months in prison to be followed by five years of supervised release. Hanna pleaded guilty on March 14, 2024.

    According to court records, between May 2022 and March 2023, Hanna and others trafficked methamphetamine in Downeast Maine, receiving the drugs by mail from a source in California. Hanna coordinated drug shipments from the source and found coconspirators in Maine willing to receive the packages. He also sent the sales proceeds to the source via Walmart2Walmart, Cash App and Venmo, using coconspirators’ identifications and accounts to conceal his involvement in the transactions.

    The FBI investigated the case with assistance from the U.S. Postal Inspection Service, Ellsworth Police Department, Maine Drug Enforcement Agency, Holden Police Department, and Hancock County Sheriff’s Office.

    ###

    MIL Security OSI

  • MIL-OSI Security: Registered sex offender who was deported from United States arrested in Snohomish County for receiving images of child sexual abuse

    Source: Office of United States Attorneys

    Seattle – A 42-year-old Mexican citizen was indicted this week for receiving images of child sexual abuse, announced Acting U.S. Attorney Teal Luthy Miller. Jamie Neri-Soto was arrested by Bothell Police detectives following an investigation prompted by reports to the National Center for Missing and Exploited Children (NCMEC). Using those cyber tips investigators were able to identify Neri-Soto as the owner of electronic devices allegedly containing images of child sexual abuse.

    According to records filed in the case, in October 2024, WhatsApp alerted NCMEC that a user of its platform had uploaded images of child sexual abuse. In January 2025, the CyberTip was referred to the Bothell Police Department who immediately began work to connect the phone number and IP address to a particular individual. Working with information on the device and internet service providers, law enforcement was able to determine the location of the phone at various times and ultimately identified Neri-Soto.

    Following some surveillance, Neri-Soto was arrested and taken to Bothell Police. When he was fingerprinted law enforcement learned he was a previously registered sex offender whose registration was terminated in 2017, when he was turned over to federal authorities for deportation.

    Federal authorities were involved in the forensic analysis of the electronic devices Neri-Soto possessed. The cyber review allegedly found numerous images of child sexual abuse on one of the devices. Neri-Soto was charged federally by criminal complaint with receipt of images of child sexual abuse.

    The grand jury returned an indictment for receipt of child pornography late yesterday.

    The charges are punishable by up to twenty in prison.

    Neri-Soto is scheduled for arraignment on March 13, 2025.

    The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

    The case was investigated by the Bothell Police Department and the FBI.

    The case is being prosecuted by Assistant United States Attorney Cecelia Gregson.

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

    MIL Security OSI

  • MIL-OSI USA: Health Care Providers and Laboratory Marketers Agree to Pay Over $1.9 Million to Settle Kickback Allegations

    Source: US State of California

    Gerald Congdon, M.D., of Pawleys Island, South Carolina; Gbenga Aluko, M.D., of Charlotte, North Carolina; and Anup Banerjee, M.D., of Gastonia, North Carolina, and their medical practices; as well as Curis Healthcare Inc., of Chicago, Illinois, Omar Hussain, of South Miami, Florida, and Saeed Medical Group Ltd. doing business as Alliance Immediate and Primary Care of Chicago, Illinois, agreed to pay a total of $1,913,808 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Department of Justice’s investigations of other participants in the alleged schemes.

    “We will continue to hold accountable individuals and entities that accept money to steer federal health care beneficiaries to a particular laboratory for testing,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks can undermine the integrity of taxpayer-funded health care programs, distort medical decisions, and result in unnecessary services.”

    The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

    The settlements announced today resolve allegations that health care providers received kickbacks in return for their referrals to a laboratory in Anderson, South Carolina, and that a marketer and his marketing company received kickbacks from that South Carolina laboratory to arrange for laboratory testing referrals, in violation of the Anti-Kickback Statute. The kickbacks allegedly resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.

    • Dr. Gerald Congdon, Coastal Urgent Care LLC, and Coastal Wellness Center LLC. Dr. Congdon and his medical practices in Pawleys Island and Myrtle Beach, South Carolina, agreed to pay $400,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
    • Dr. Gbenga Aluko and Eagle Medical Center PC. Dr. Aluko and his medical practice in Charlotte, North Carolina, agreed to pay $250,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental, phlebotomy, and toxicology payments from the South Carolina laboratory in return for ordering testing.
    • Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A. Dr. Banerjee and his medical practice in Gastonia, North Carolina, agreed to pay $206,000 to resolve allegations that from April 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
    • Omar Hussain and Curis Healthcare Inc. Hussain and his marketing company agreed to pay $817,808 to resolve allegations that from April 2020 to August 2021, Hussain and his company received commissions from the South Carolina laboratory as independent contractors based on the volume and value of the Medicare and TRICARE referrals for laboratory testing that they arranged for and recommended.
    • Saeed Medical Group Ltd., Omar Hussain, and Curis Healthcare Inc. Saeed Medical Group and Hussain and his marketing company agreed to pay $240,000 to resolve allegations that from April 2020 to August 2021, Saeed Medical Group received thousands of dollars in remuneration in the form of cash payments from Hussain and his company in return for ordering testing from the South Carolina laboratory.

    “Integrity must be the standard in our health care system,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Kickback schemes divert funds and focus away from patients and their medical needs.”

    “The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “These settlements should serve as a reminder that the FBI and its partners are committed to holding medical practitioners accountable for kickbacks.”

    “Kickback schemes undermine medical decision-making and jeopardize the integrity of federally funded health care programs,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our commitment is to safeguard taxpayer-funded health care and the patients who rely on it, and we will rigorously pursue any allegations of False Claims Act violations.”

    “The trust of the American taxpayer and the wellbeing of our service members are undermined when laboratories and physicians engage in collusive financial relationships,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners to bring to justice medical providers who illegally enrich themselves by prioritizing kickbacks over patient care.”

    The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, and the FBI. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina. The United States previously resolved allegations that physicians in South Carolina, North Carolina, and Texas received kickbacks from the same South Carolina laboratory.

    The government’s pursuit of this matter illustrates the government’s emphasis on 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 the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

    The claims resolved by the settlements are allegations only, and there has been no determination of liability.

    MIL OSI USA News

  • MIL-OSI Security: Health Care Providers and Laboratory Marketers Agree to Pay Over $1.9 Million to Settle Kickback Allegations

    Source: United States Attorneys General

    Gerald Congdon, M.D., of Pawleys Island, South Carolina; Gbenga Aluko, M.D., of Charlotte, North Carolina; and Anup Banerjee, M.D., of Gastonia, North Carolina, and their medical practices; as well as Curis Healthcare Inc., of Chicago, Illinois, Omar Hussain, of South Miami, Florida, and Saeed Medical Group Ltd. doing business as Alliance Immediate and Primary Care of Chicago, Illinois, agreed to pay a total of $1,913,808 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Department of Justice’s investigations of other participants in the alleged schemes.

    “We will continue to hold accountable individuals and entities that accept money to steer federal health care beneficiaries to a particular laboratory for testing,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks can undermine the integrity of taxpayer-funded health care programs, distort medical decisions, and result in unnecessary services.”

    The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

    The settlements announced today resolve allegations that health care providers received kickbacks in return for their referrals to a laboratory in Anderson, South Carolina, and that a marketer and his marketing company received kickbacks from that South Carolina laboratory to arrange for laboratory testing referrals, in violation of the Anti-Kickback Statute. The kickbacks allegedly resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.

    • Dr. Gerald Congdon, Coastal Urgent Care LLC, and Coastal Wellness Center LLC. Dr. Congdon and his medical practices in Pawleys Island and Myrtle Beach, South Carolina, agreed to pay $400,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
    • Dr. Gbenga Aluko and Eagle Medical Center PC. Dr. Aluko and his medical practice in Charlotte, North Carolina, agreed to pay $250,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental, phlebotomy, and toxicology payments from the South Carolina laboratory in return for ordering testing.
    • Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A. Dr. Banerjee and his medical practice in Gastonia, North Carolina, agreed to pay $206,000 to resolve allegations that from April 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
    • Omar Hussain and Curis Healthcare Inc. Hussain and his marketing company agreed to pay $817,808 to resolve allegations that from April 2020 to August 2021, Hussain and his company received commissions from the South Carolina laboratory as independent contractors based on the volume and value of the Medicare and TRICARE referrals for laboratory testing that they arranged for and recommended.
    • Saeed Medical Group Ltd., Omar Hussain, and Curis Healthcare Inc. Saeed Medical Group and Hussain and his marketing company agreed to pay $240,000 to resolve allegations that from April 2020 to August 2021, Saeed Medical Group received thousands of dollars in remuneration in the form of cash payments from Hussain and his company in return for ordering testing from the South Carolina laboratory.

    “Integrity must be the standard in our health care system,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Kickback schemes divert funds and focus away from patients and their medical needs.”

    “The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “These settlements should serve as a reminder that the FBI and its partners are committed to holding medical practitioners accountable for kickbacks.”

    “Kickback schemes undermine medical decision-making and jeopardize the integrity of federally funded health care programs,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our commitment is to safeguard taxpayer-funded health care and the patients who rely on it, and we will rigorously pursue any allegations of False Claims Act violations.”

    “The trust of the American taxpayer and the wellbeing of our service members are undermined when laboratories and physicians engage in collusive financial relationships,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners to bring to justice medical providers who illegally enrich themselves by prioritizing kickbacks over patient care.”

    The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, and the FBI. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina. The United States previously resolved allegations that physicians in South CarolinaNorth Carolina, and Texas received kickbacks from the same South Carolina laboratory.

    The government’s pursuit of this matter illustrates the government’s emphasis on 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 the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

    The claims resolved by the settlements are allegations only, and there has been no determination of liability.

    MIL Security OSI

  • MIL-OSI Security: Four Plead Guilty in N. Charleston Public Corruption Scheme

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

    CHARLESTON, S.C. —Following Wednesday’s announcement of eight people charged in a public corruption scheme, four have pleaded guilty. The four men, including two former city council members, were each granted release pending sentencing on unsecured bonds.

    These four defendants entered guilty pleas in federal court today:

    Jerome Sydney Heyward, 61, Former North Charleston City Councilmember;

    Sandino Savalas Moses, 50, Former North Charleston City Councilmember;

    Donavan Laval Moten, 46, founder of Core4Success Foundation; and

    Aaron Charles-Lee Hicks, 37, resident of North Charleston.

    United States District Judge Richard M. Gergel accepted the guilty pleas and will sentence Heyward, Moses, Moten, and Hicks after receiving and reviewing a sentencing report prepared by the U.S. Probation Office. Heyward and Moten each face a maximum term of imprisonment of 20 years, a fine of $500,000, and a term of supervised release of three years. Hicks faces a maximum term of imprisonment of 20 years, a fine of $250,000, and a term of supervised release of three years. Moses faces a maximum term of imprisonment of three years, a fine of $250,000, and a maximum term of supervised release of one year.

    This case was investigated by the FBI Columbia Field Office and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse and Whit Sowards are prosecuting the case.

    ###

    MIL Security OSI

  • MIL-OSI USA: Proceed with Caution, California: Attorney General Bonta Alerts Consumers to Ongoing Scam Activity

    Source: US State of California Department of Justice

    OAKLAND — California Attorney General Rob Bonta today issued a consumer alert warning Californians of three popular text-based scams. These scam texts claim Californians owe past-due charges and provide fraudulent links for consumers to “resolve” the charge — the links are often a vehicle by which scammers can steal consumers’ sensitive payment data. Scammers often use the threat of a “late fee” or use words like “urgent action required” to pressure consumers into clicking the links. The California Department of Justice asks Californians to slow down and proceed with caution when faced with these types of messages. 

    “California, these scammers are relentless. While text-based toll charge scams remain widespread, consumers across our state are also receiving texts claiming they owe a parking ticket charge,” said Attorney General Bonta. “Bad actors are getting more sophisticated and show little signs of slowing. I urge Californians to not click on links in texts appearing to alert consumers to overdue charges, visit only official websites, and talk to friends and family who may be unaware of these dangers.” 

    If You Receive a Possible Scam Text:

    • DO NOT CLICK ON THE LINK. 
    • File a complaint. File a complaint with the FBI, the Federal Trade Commission, and our office. Be sure to include the phone number from where the text originated and the website listed within the text.
    • Delete any scam texts received. 
    • Check your account using a legitimate website. 
    • Secure your personal information and financial accounts. Regularly check your bank and credit card statements for unauthorized transactions, especially after suspecting a scam. Dispute any unfamiliar charges. 

    TOLL CHARGE SCAMS

    These texts claim consumers owe FasTrak express lane or toll charges, link to a website, and ask for online payment. This scam is designed to trick drivers into entering banking or credit card information into a website fraudulently claiming to represent tolling agencies.

    FasTrak is the electronic toll collection system used on tolled bridges, lanes, and roads in California. It allows drivers to pay tolls electronically without having to stop at toll booths. FasTrak does not request payment by text with a link to a website. The Transportation Corridor Agencies (TCA), operator of The Toll Roads in Orange County, advises account holders to verify a valid text notification by logging into their account at thetollroads.com or through The Toll Roads app. 

    For all other toll agencies, please use official webpages only — you can find a list of California toll webpages below:

    PARKING CHARGE SCAMS

    These messages aim to scare consumers into thinking something they’ve dreaded has happened: that they’ve earned a parking ticket and have forgotten to pay it. The San Francisco Municipal Transportation Agency (SFMTA), an agency that scammers have imitated, does not request payment by text with a link to a website. For more information on paying a SFMTA parking citation, please visit SFMTA.com/PayCitation.

    If you live or visit another city, please use the official website of that city or transportation agency.  

    PACKAGE DELIVERY SCAMS 

    These text messages often state that there’s an issue with your delivery and include a link to “resolve” the problem. Package delivery scams are more common over the gift giving season but can occur at any time. Delivery companies do not ask for payment to release a package or correct a delivery error — any such request is a scam. 

    Consider signing up for alerts from trusted carriers like UPS, FedEx, or USPS. These alerts will notify you of package updates directly from the source. 

    Attorney General Bonta is committed to enforcing consumer protections in the state of California and speaking out for consumer protections nationwide — this includes working to put a stop to illegal and annoying robocalls, which are often a vehicle for scams. Last year, Attorney General Bonta, as part of the nationwide Anti-Robocall Multistate Litigation Task Force, joined the Federal Communications Commission (FCC) in sending a warning letter to a telecom company responsible for transmitting suspected illegal robocall traffic and issued a warning letter to a company that allegedly sent New Hampshire residents scam election robocalls during the New Hampshire primary election. 

    MIL OSI USA News

  • MIL-OSI Security: Columbus Men Sentenced to Decades in Prison for Their Roles in Drug and Human Trafficking Rings, Overdose and Violent Deaths

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

    COLUMBUS, Ohio – Two Columbus men were sentenced in U.S. District Court today to 25years and 23 years in prison for drug crimes, sex trafficking crimes and their roles in the deaths of a local man and woman. The defendants are two of nearly two dozen individuals charged in a case involving large-scale drug and human trafficking rings, the overdose death of at least one individual and the violent death of a second victim.

    Dustin A. Speakman, 35, of Columbus, was sentenced to 276 months in prison. He pleaded guilty in March 2024 to conspiracy to distribute and possess with intent to distribute controlled substances within 1,000 of an elementary school. As part of his plea, Speakman admitted to his role in the violent death of one victim that occurred during the time he was operating a drug distribution house.

    Tyler Bourdo, 31, of Columbus, was sentenced to 300 months in prison. He also pleaded guilty in March 2024 to conspiracy to distribute and possess with intent to distribute controlled substances within 1,000 of an elementary school, as well as distributing fentanyl and cocaine that resulted in death and conspiracy to commit sex trafficking.

    Speakman and Bourdo are two of 23 defendants charged in a narcotics and human trafficking case that involves at least two deaths. Two of the defendants were found guilty following a jury trial last month. All 23 defendants have been convicted or pleaded guilty.

    According to court documents, from 2008 until June 2022, lead defendants Patrick Saultz and Cordell Washington ran a large-scale drug trafficking organization in Columbus that included sex trafficking, labor trafficking and money laundering.

    Court documents detail that the drug trafficking organization brought large quantities of fentanyl, heroin, cocaine, crack cocaine, methamphetamine, oxycodone, alprazolam and marijuana into Columbus. These drugs were sold or used to coerce individuals into sexual activity for some members of the drug ring and their profit.

    Speakman joined the drug trafficking organization after being released from jail in 2022, where he was housed with Saultz. Speakman was a mid-level drug distributor for the group out of residences on South Ogden and South Warren.

    As part of his guilty plea, Speakman admitted to severely beating one of his drug runners in May 2022 and then providing him with free drugs to make up for the attack. Witnesses said the male was beaten by Speakman and then given cocaine and fentanyl as compensation. Shortly after, the victim began to seize and foam at the mouth and did not respond to Narcan. The victim was driven to an alley near Grant Hospital where he was found unconscious by Columbus Fire Department personnel with severe trauma to the face and head. His cause of death was ultimately determined to be blunt force trauma caused by Speakman.

    Bourdo supplied and oversaw the drug distribution at one of the stash houses on North Warren. He was providing the property’s owners approximately $100 in illegal narcotics per day for use of the residence.

    According to Bourdo’s plea agreement, on Oct. 14, 2021, an individual was found deceased in an alley between Bourdo’s primary residence and a drug distribution house. The woman was found with a needle in her hand and another needle in her pocket and had been dead for approximately 18 hours.

    Further investigation revealed that, on Oct. 10, 2021, the woman had overdosed on crack cocaine and fentanyl at one of the organization’s drug houses that Bourdo supplied on North Warren. Witnesses on site immediately placed the woman in a bathtub and soaked her in cold water. The witnesses provided multiple rounds of Narcan, CPR and chest compressions, eventually resuscitating her. The woman left and, over the next 48 hours, met up with Bourdo on more than one occasion to get and use more drugs.

    Video surveillance of the alley shows Bourdo walking to the deceased woman’s body just moments before police personnel arrived to attempt (unsuccessfully) to obtain her phone to prevent further investigation into her death.

    As part of his plea, Bourdo admitted to coercing adult drug-addicted females into performing commercial sex acts by using violence as well as providing and then withholding or threatening to withhold narcotics and lodging.

    Acting U.S. Attorney Kelly A. Norris commended the investigation coordinated by Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission Central Ohio Human Trafficking Task Force, which includes Columbus Division of Police Chief Elaine Bryant; Jared Murphey , Acting Special Agent in Charge, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Detroit; and Andrew Lawton, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA). Other agencies that have assisted the task force with the investigation include the Franklin County Sheriff’s Office, HIDTA Task Force, IRS-Criminal Investigation, FBI, Ohio Bureau of Criminal Investigations (BCI), Ohio National Guard Counter Drug Task Force, Pickerington Police Department, New Albany Police Department, and the Fairfield County Sheriff’s Office SWAT Team.

    Assistant United States Attorneys Timothy Prichard and Emily Czerniejewski are representing the United States in this case.

    This investigation 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. More information about OCDETF can be found at https://www.justice.gov/OCDETF.

    # # #

    MIL Security OSI

  • MIL-OSI Security: Previously Convicted Sex Offender Pleads Guilty to Federal Exploitation and Sex Trafficking Crimes

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

    COLUMBUS, Ohio – A previously convicted sex offender who sexually exploited two minor females and forced one of the girls to engage in commercial sex acts with men at hotels pleaded guilty in U.S. District Court today. 

    Anthony Sims, 56, of Columbus, was scheduled to begin trial on March 17. He pleaded guilty today to two counts of sexually exploiting a minor and one count of sex trafficking a minor.

    The guilty plea includes a sentencing recommendation of 25 to 50 years in prison.

    Sims admitted that he raped a 12-year-old girl 40 to 50 times over the span of six months in 2020. Sims provided the girl marijuana and alcohol and talked her into getting high and drinking. At times, during the sexual assaults, Sims would hold down the victim’s arms or hold her in place. He also forced the girl to pose for photos in sexual positions either while nude or while wearing lingerie.

    Likewise, Sims convinced another, a 13-year-old girl, to smoke marijuana with him, and once she was high, Sims raped her. He also held down this victim. Sims would take nude photos of her and made her pose with stuffed animals or pillows.

    Sims also took the 13-year-old to various hotels to force her to have sex with men who paid Sims. The victim was forced to have sex with approximately 50 different men. Sims sold pornographic photos of the victim and coordinated the dates at the hotels.

    At the time of his most recent crimes, Sims was a registered sex offender with two convictions out of Michigan.

    Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost’s Ohio Organized Crime Investigations Commission’s Central Ohio Human Trafficking Task Force and the Ohio Bureau of Criminal Investigations (BCI); and Columbus Police Chief Elaine Bryant announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Emily Czerniejewski and Tyler J. Aagard are representing the United States in this case.

    # # #

    MIL Security OSI

  • MIL-OSI Security: Former Olympian Wanted for Running Transnational Drug Enterprise and Ordering Several Murders Added to FBI’s List of Ten Most Wanted Fugitives

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

    At present, Wedding is wanted for allegedly running a transnational drug trafficking network that routinely shipped hundreds of kilograms of cocaine from Colombia, through Mexico and Southern California, to Canada and other locations in the United States, and for orchestrating multiple murders and an attempted murder in furtherance of these drug crimes.

    Wedding’s placement on the top ten list marks the 535th addition to the FBI’s list of notorious fugitives. Wedding will replace Alexis Flores who is wanted by FBI Philadelphia. Although Flores is being removed from the list today, he will remain on the FBI’s website on its Most Wanted page.

    “Wedding went from shredding powder on the slopes at the Olympics to distributing powder cocaine on the streets of U.S. cities and in his native Canada,” said Akil Davis, the Assistant Director of the FBI’s Los Angeles Field Office. “The alleged murders of his competitors make Wedding a very dangerous man, and his addition to the list of Ten Most Wanted Fugitives, coupled with a major reward offer by the State Department, will make the public our partner so that we can catch up with him before he puts anyone else in danger.”

    Additionally, the U.S. Department of State’s Bureau of International Narcotics and Law Enforcement Affairs announced that it is offering a $10-million-reward for information leading to Wedding’s arrest and/or conviction. The reward was authorized by Secretary of State Marco Rubio under the Narcotics Rewards Program (NRP), which supports law enforcement efforts to disrupt transnational crime globally and bring fugitives to justice. This reward offering supplements the FBI’s current offering of $50,000 for information leading to Wedding’s apprehension, arrest, and extradition, and further, is jointly being offered with assistance from the Canadian and Mexican governments as part of a unified effort to bring Wedding to justice.

    In June 2024, Wedding and his second-in-command Andrew Clark, 34, also Canadian, were charged in an indictment out of the Central District of California with running a continuing criminal enterprise; committing murder in connection with a continuing criminal enterprise and assorted drug crimes; and conspiring to possess, distribute, and export cocaine. Clark, who was arrested last October by Mexican authorities, was among the 29 fugitives whom Attorney General Pamela Bondi announced had arrived in the United States from Mexico last week.

    In September 2024, a federal grand jury in Los Angeles returned a superseding indictment naming 14 additional defendants and including, among other counts, an attempted murder charge against Wedding and Clark. The superseding indictment alleges that Wedding, Clark, and others conspired to ship bulk quantities of cocaine – weighing hundreds of kilograms – from Southern California to Canada through a Canada-based drug transportation network run by Hardeep Ratte, 46, of Ontario, Canada, and Gurpreet Singh, 31, of Ontario, Canada, from approximately January 2024 to August 2024. The cocaine shipments were transported from Mexico to the Los Angeles area, where the cocaine trafficking organization’s operatives stored the cocaine in stash houses, before delivering it to the transportation network couriers for delivery to Canada using long-haul semi-trucks.

    “As alleged in the superseding indictment, defendant Ryan Wedding – a former Olympian – led a transnational criminal organization that murdered innocent people and put thousands of kilograms of narcotics on our streets,” said Acting United States Attorney Joseph T. McNally. “The reward offered today will help bring this defendant to justice in the United States. We urge anyone with information about Wedding to contact law enforcement and help us get Mr. Wedding into custody.”

    The superseding indictment also alleges that Wedding and Clark’s organization resorted to violence – including multiple murders – to achieve its aims. Wedding and Clark allegedly directed the November 20, 2023, murders of two members of a family in Ontario, Canada, in retaliation for a stolen drug shipment that passed through Southern California. Another member of that family survived the shooting but was left with serious physical injuries. Wedding and Clark allegedly also ordered the murder of another victim on May 18, 2024, over a drug debt. In addition, Clark and Malik Damion Cunningham, 23, a dual Canadian-American citizen, are charged with the April 1, 2024, murder of another victim in Ontario, Canada.

    “The RCMP is committed to working with our international partners in the fight against transnational criminals,” said Liam Price, Director General, Royal Canadian Mounted Police International program. “It’s imperative that Ryan Wedding faces justice for the charges against him. We will continue to stand with and support our US and Mexican partners in this and other investigations to protect the public.”

    If convicted, Wedding and Clark would face a mandatory minimum penalty of life in federal prison on their respective continuing criminal enterprise charge. The murder and attempted murder charges carry a mandatory minimum penalty of 20 years in federal prison. The drug trafficking charges carry mandatory minimum penalties of 10 to 15 years in prison.

    “The former Canadian snowboarder unleashed an avalanche of death and destruction, here and abroad,” said Matthew Allen, Special Agent in Charge of the Drug Enforcement Administration’s Los Angeles Field Division. “He earned the name ‘El Jefe’, becoming boss of a violent transnational drug trafficking organization. Now, his face will be on ‘The Top 10 Most Wanted’ posters. He’s unremitting, callous and greed-driven. Today’s announcement beams an even brighter searchlight on him. We ask that you help us find him.”

    The FBI urges anyone with information as to Wedding’s whereabouts to call the FBI via WhatsApp, Signal or Telegram at +1-424 495-0614. These are neither government-operated nor government-controlled platforms. Callers may also contact their local FBI office, the nearest American Embassy or Consulate, or submit a tip online at tips.fbi.gov. Confidentiality will be granted to anyone who calls with information.

    Investigators believe that Wedding is residing in Mexico but have not ruled out his presence in the United States, Canada, Colombia, Honduras, Guatemala, Costa Rica, or elsewhere. Wedding is further described as follows:

    Aliases: James Conrad King, Jesse King
    DOB: September 14, 1981
    Hair: Brown, may wear a beard and/or mustache
    Eyes: Blue
    Height: 6’3”
    Weight: 240 lbs. (may vary)
    Nationality: Canadian
    Place of Birth: Thunder Bay, Canada
    Monikers: “Giant,” “Public Enemy,” “El Jefe”

    Photographs and reward information about Wedding will be posted on digital billboards in key locations, as well as on fbi.gov, and on the FBI’s social media platforms. Additional information about Wedding and other Top Ten Fugitives is available at this link: Top Ten Fugitives.

    The FBI’s Ten Most Wanted Fugitives list was established in March 1950. Since its inception, 535 fugitives have been placed on the list of “Ten Most Wanted Fugitives,” 496 of whom were apprehended or located; 163 were due to citizen cooperation.

    The FBI is investigating Wedding and Clark’s drug trafficking enterprise with the Los Angeles Police Department, DEA Los Angeles, and the Royal Canadian Mounted Police – Federal Policing. In addition, significant assistance has been provided by U.S. law enforcement partners, including Homeland Security Investigations – Detroit, and United States Customs and Border Protection – Buffalo; Canadian law enforcement partners, including Niagara Regional Police Service, Ontario Provincial Police, Toronto Police Service, and Peel Regional Police; Mexican law enforcement partners; and Colombian law enforcement partners, including Colombian National Police – Directorate of Criminal Investigation and Interpol, Special Interagency Investigation Group (Policía Nacional de Colombia – Dirección de Investigación Criminal e Interpol, Grupo Especial de Investigación Interagenciales).

    Assistant United States Attorneys Lyndsi Allsop and Maria Jhai of the Violent and Organized Crime Section and Ryan Waters of the Asset Forfeiture and Recovery Section are prosecuting this case. The Justice Department’s Office of International Affairs provided substantial assistance.

    This case 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.

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

    MIL Security OSI

  • MIL-OSI Security: 25 Metropolitan Detention Center Inmates, Their Associates and a Former Correctional Officer — Charged in a Dozen Criminal Cases at the Federal Jail in Brooklyn

    Source: Office of United States Attorneys

    Charges Include a Range of Violent Assaults and Contraband Smuggling in Continued Effort by Law Enforcement to Combat Crime Inside the Prison

    Today the United States Attorney’s Office for the Eastern District of New York announced criminal charges against 25 defendants in 12 separate cases relating to violence and contraband smuggling at the Metropolitan Detention Center (MDC-Brooklyn) in Sunset Park, Brooklyn. These include charges against 15 inmates for violent assaults against other inmates from May 2024 to the present; a former correctional officer for attempting to smuggle contraband into the facility on January 21, 2025; an inmate for orchestrating a contraband smuggling operation between April and June 2024; an inmate for smuggling ceramic scalpels into the facility on October 12, 2024; an inmate for possession of contraband and continuing to commit fraud while detained at MDC-Brooklyn; and an MS-13 gang associate for attempting to smuggle a large package of contraband, including 18 cellphones and marijuana, to other MS-13 gang members incarcerated at MDC-Brooklyn.

    Previously, nine inmates at MDC-Brooklyn were charged by the Office in September 2024 for violence and contraband smuggling.  In addition, the Office, in conjunction with the United States Attorney’s Office for the Southern District of New York (USAO-SDNY) and more than a dozen law enforcement partners, assisted in October 2024 with a week-long multi-agency operation aimed at detecting and seizing contraband from MDC-Brooklyn.

    John J. Durham, United States Attorney for the Eastern District of New York, Leslie R. Backschies, Acting Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Kathleen Toomey, Associate Deputy Director, Federal Bureau of Prisons, announced the charges.

    “The safety and security of our federal detention facilities is paramount,” stated United States Attorney Durham.  “As alleged, in several separate charging instruments, inmates viciously attacked fellow detainees, a correctional officer betrayed his duty by attempting to smuggle drugs into the facility, several inmates orchestrated elaborate contraband smuggling operations and yet another inmate continued to engage in fraud schemes while detained.  These actions undermine the order and security of MDC-Brooklyn and endanger everyone within its walls.  My Office is working tirelessly to hold accountable those who commit violent acts or introduce contraband into the prison, whether they are inmates or staff.  These charges serve as a warning to those who would engage in criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be uncovered, and you will be held accountable.”

    Mr. Durham thanked the U.S. Bureau of Prisons and the FBI New York Field Office for their investigative work in these cases, as well as the United States Attorney’s Office for the Southern District of New York and the Department of Justice, Office of Inspector General for their assistance.

    “These 25 defendants, an array of inmates and a former correctional officer, allegedly committed numerous violent attacks against fellow inmates and orchestrated various schemes to smuggle contraband into the prison,” stated FBI Acting Assistant Director in Charge Backschies. “These cases reflect the alleged extreme disregard for adhering to the rules designed to protect the other inmates and correctional staff within the institution. The FBI will never tolerate any individual, regardless of their incarceration status, who engages in deviant behavior that threatens the safety and stability of our federal facilities.

    “The Federal Bureau of Prisons would like to thank the FBI and the EDNY for their partnership and support to further prevent and prosecute violence and contraband in our facilities, through our unified efforts we are making our facilities safer for our employees and those in our custody,” stated Federal Bureau of Prisons Associate Deputy Director Toomey.   

    A summary of the cases follows:

    U.S. v. Mike Josie

    Mike Josie has been charged by indictment with assault in a federal detention facility in connection with his participation in an assault of another inmate at MDC-Brooklyn on May 26, 2024.  As alleged, Josie brutally attacked another inmate in his housing unit who was sitting at a table in a common area of the unit.  Josie approached the victim from behind and made several slashing motions towards the victim’s face.  After the assault, the victim was taken to a nearby hospital to treat lacerations to his neck and face. If convicted, Josie faces up to10 years in prison.  Josie is scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Assistant United States Attorney Sean Fern is in charge of the prosecution.

    U.S. v. Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez

    Daryl Campbell, Ian Diez, Jonathan Guerrero, Abel Mora and Mayovanex Rodriguez are charged by complaint with conspiracy to smuggle contraband into MDC-Brooklyn.  As alleged, between April and June 2024, Campbell used a contraband cell phone to conspire with others to smuggle contraband into MDC-Brooklyn.  In several voice recordings found on the phone, Campbell explained his method of throwing a “line” out of a window of MDC-Brooklyn for a co-conspirator on the outside to “hook” or attach contraband, which could then be pulled back inside.  On June 30, 2024, Diez, Guerrero, Mora, and Rodriguez attempted to execute Campbell’s scheme by pulling a rope through the window of the recreation room in their housing area.  At the other end of that rope, correctional officers found what appeared to be suboxone, marijuana, a scalpel, a phone charger, lighters, and cigarettes.  If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorneys Russell Noble and Elizabeth D’Antonio are in charge of the prosecution.

    U.S. v. Sean Smith, Rasheed Chapman and Antwan Mosley

    Sean Smith, Rasheed Chapman and Antwan Mosley have been indicted by a grand jury for the June 2, 2024 assault of another inmate at MDC-Brooklyn.  The defendants violently assaulted the victim, slashing him across the face and neck and causing serious lacerations.  The victim was then chased through the housing unit and struck repeatedly by his assailants. If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorney Kamil Ammari is in charge of the prosecution.

    U.S. v. Adil Duran

    Adil Duran has been charged in an indictment with assault with a dangerous weapon, assault resulting in serious bodily injury and possessing contraband in prison.  As captured on video surveillance footage, on July 11, 2024, Duran slashed another inmate in the face and neck with a sharpened weapon, causing serious lacerations that required sutures.  If convicted, Duran faces up to 20 years in prison.  Assistant United States Attorney Kate Mathews is in charge of the prosecution.

    U.S. v. Erik Steadman and Javaughn Horton

    Erik Steadman and Javaughn Horton have been charged by complaint with assault in a federal detention facility for the September 5, 2024 assault of another inmate at MDC-Brooklyn.  As alleged, Horton and Steadman approached another inmate in their unit and began punching him repeatedly in the face until he fell to the ground.  The defendants continued punching and kicking the victim in the face, causing a significant laceration to his face.  If convicted, the defendants face up to 10 years in prison.  Assistant United States Attorney Molly Delaney is in charge of the prosecution.

    U.S. v. Angel Villafane

    Angel Villafane, a member of the gang Valentine Avenue Crew, has been indicted for possession of 21 ceramic scalpels smuggled into MDC-Brooklyn on October 12, 2024.  As alleged, while sitting in the visiting room at MDC-Brooklyn, Villafane removed a ball full of ceramic scalpels from a bag of Doritos chips and placed them in his shirt.  Correctional officers later discovered the scalpels during a search.  If convicted, the defendant faces up to five years in prison. Department of Justice Trial Attorney Margaret P. Mortimer is in charge of the prosecution.

    U.S. v. Juan Lopez and Jose Rivera

    Juan Lopez and Jose Rivera have been indicted for assaulting another inmate and possessing contraband weapons.  As alleged, on November 11, 2024, Lopez and Rivera slashed and stabbed another inmate in their housing unit.  The victim was seated at a table when Rivera snuck up behind him and slashed him multiple times in the head and neck with a sharp object. As the victim ran to seek help, Lopez tried to prevent him from reaching the correctional officers’ station by swinging his own weapon, stabbing the victim in the arm.  The victim suffered three lacerations to the back of his head, one laceration to his neck and a puncture wound to his forearm.  If convicted, the defendants face up to 15 years in prison.  Assistant United States Attorney Russell Noble is in charge of the prosecution.

    U.S. v. Tyquan Robinson

    Tyquan Robinson has been charged in a five-count superseding indictment with conspiracy to commit wire and bank fraud, conspiracy to commit wire fraud, bank fraud, aggravated identity theft and possession of contraband in prison.  Robinson was originally detained at MDC-Brooklyn for his alleged role in defrauding a court-appointed criminal defense attorney by obtaining a stolen $125,000 Treasury check issued to the attorney as payment for representing indigent defendants and stealing his identity.  In October 2024, officers at the MDC performed a search of Robinson’s cell. Inside his locker, the officers discovered that Robinson had hidden a contraband cellphone inside of a box of Raisin Bran cereal. An examination of this contraband cellphone revealed that even while incarcerated at the MDC, Robinson was participating in a separate fraud scheme from his original charges by discussing stealing checks issued to others, opening multiple bank accounts, and exchanging third parties’ personally identifiable information.  If convicted, Robinson faces up to 30 years in prison.  Assistant United States Attorney James R. Simmons is in charge of the prosecution with the assistance of Special Agent Anthony Cunder.

    U.S. v. Jairon Ortega-Corea

    Jairon Ortega-Corea, an MS-13 gang associate, was charged by indictment with attempting to provide contraband to inmates at MDC-Brooklyn.  He was arrested on March 3, 2025 in Minnesota.  The charges stem from the December 2, 2024 discovery, by MDC-Brooklyn employees, of a package on the fourth-floor roof of the jail containing 18 cellular telephones, approximately 345 grams of marijuana and one liter of drinking alcohol, among other items.  The prior evening, a witness had observed the attempted smuggling of the package into MDC-Brooklyn, when it was pulled up by a rope dangled out of the window of an empty cell within the unit that houses MS-13 members.  An investigation subsequently revealed that the defendant, who is related to a high-ranking MS-13 member housed at MDC-Brooklyn, purchased several of the contraband items at a local Walmart the day prior to the discovery.  At the time of the purchase, Ortega-Corea was communicating with MS-13 inmates at MDC-Brooklyn who were using a different contraband phone.  If convicted, Ortega-Corea faces up to 20 years in prison.  Assistant United States Attorneys Megan E. Farrell, Paul G. Scotti and Justina L. Geraci are in charge of the prosecution.

    U.S. v. Najee Jackson

    Najee Jackson, a former correctional officer at MDC-Brooklyn, has been indicted by a grand jury for attempting to smuggle contraband into the facility.  On January 21, 2025, Jackson, who was employed as a correctional officer, arrived at MDC-Brooklyn to begin working a night shift. After making several failed attempts to clear the metal detector in the staff screening area, Jackson removed his Bureau of Prisons-issued protective vest, which was found to contain vacuum‑sealed bags of marijuana and cigarettes. Jackson resigned from the Bureau of Prisons two days later.  If convicted, the defendant faces up to five years in prison.  Assistant United States Attorneys Turner Buford and Russell Noble are in charge of the prosecution.

    U.S. v. Devone Thomas

    Devone Thomas, who was previously charged with the June 7, 2024 killing of Uriel Whyte inside of the MDC Brooklyn, is now additionally charged by complaint with possession of a contraband weapon.  On February 28, 2025, Thomas was transported to federal court in Brooklyn for a status conference in connection with his murder case. Upon his return to MDC-Brooklyn after the court appearance, a blade was found in Thomas’s groin area.  If convicted, the defendant faces up to five years in prison.  Assistant United States Attorney Elizabeth D’Antonio is in charge of the prosecution.

    U.S. v. Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez and Elvis Trejo

    Brian Castro, Franklin Gillespie, Juan Lopez, Jowenky Nunez Jr., Hugo Rodriguez, and Elvis Trejo have been charged by complaint with assault in a federal detention facility for their roles in what became a unit-wide fight between inmates at MDC-Brooklyn. As alleged, on February 22, 2025, Castro, Lopez, Nunez, Rodriguez and Trejo, along with other as-yet uncharged individuals, approached another inmate in their unit, armed with weapons, and began chasing and stabbing him.  The victim was stabbed 18 times and required hospitalization for his injuries. The brawl ultimately resulted in at least five inmates, including the victim, requiring transportation to a local hospital for further treatment.  Gillespie, who was not a part of the initial group attacking the victim, joined the brawl after it began, and, also armed with a weapon, assaulted a fellow inmate in the course of the fight.  The fight resulted in more than 20 inmates requiring medical assessments, and at least 10 inmates appeared to have wounds consistent with being stabbed or slashed.  If convicted, each defendant faces up to 10 years in prison.  Assistant United States Attorney Stephen Petraeus is in charge of the prosecution.

    *          *          *

    The Office’s General Crimes Section is principally responsible for handling these cases, with substantial contributions from the Public Integrity Section, the Organized Crime and Gangs Section and the Office’s Long Island Criminal Section.  In addition to the Assistant United States Attorneys and Special Agent listed above, Special Agent Danielle Williams, Law Enforcement Coordinator Specialist Herbert Martin and Paralegal Specialists Matias Burdman and Erin Payne have provided substantial support on these cases.

    The charges in the indictments and complaints described above are allegations, and the defendants are presumed innocent unless and until proven guilty.

    The Defendants:

    MIKE JOSIE
    Age: 25

    E.D.N.Y. Docket No. 25-CR-76 (FB)

    ————–

    DARYL CAMPBELL
    Age: 39

    IAN DIEZ
    Age: 20

    JONATHAN GUERRERO
    Age: 34

    ABEL MORA
    Age: 23

    MAYOVANEX RODRIGUEZ
    Age: 30

    E.D.N.Y. Docket No. 25-MJ-72

    ————–

    SEAN SMITH
    Age: 34

    RASHEED CHAPMAN
    Age: 21

    ANTWAN MOSLEY
    Age: 23

    E.D.N.Y. Docket No. 25-CR-58

    ————–

    ADIL DURAN
    Age: 23

    E.D.N.Y. Docket No. 25-CR-9 (ARR)

    ————–

    ERIK STEADMAN
    Age: 24

    JAVAUGHN HORTON
    Age: 30

    E.D.N.Y. Docket No. 25-MJ-70

    ————–

    ANGEL VILLAFANE
    Age: 40

    E.D.N.Y. Docket No. 25-CR-71 (HG)

    ————–

    JUAN LOPEZ
    Age: 26

    JOSE RIVERA
    Age: 20

    E.D.N.Y. Docket No. 25-CR-72 (CBA)

    ————–

    TYQUAN ROBINSON
    Age: 30

    E.D.N.Y. Docket No. 24-CR-51 (AMD)

    ————–

    JAIRON ORTEGA-COREA
    Age: 23

    E.D.N.Y. Docket No. 25-CR-83

    ————–

    NAJEE JACKSON
    Age: 32

    E.D.N.Y. Docket No. 25-CR-67 (OEM)

    ————–

    DEVONE THOMAS
    Age: 25

    E.D.N.Y. Docket No. 24-CR-360 (EK)

    ————–

    BRIAN CASTRO
    Age: 24

    FRANKLIN GILLESPIE
    Age: 34

    JUAN LOPEZ
    Age: 68

    JOWENKY NUNEZ JR.
    Age: 22

    HUGO RODRIGUEZ
    Age: 29

    ELVIS TREJO
    Age: 24

    E.D.N.Y. Docket No. 25-MJ-73

    MIL Security OSI

  • MIL-OSI Security: Indictment Charges Former Federal Correctional Officer in Chicago With Sexually Abusing Inmates

    Source: Office of United States Attorneys

    CHICAGO — A former correctional officer at the Metropolitan Correctional Center in Chicago has been indicted by a federal grand jury for allegedly sexually abusing four inmates while on duty.

    BRITTANY HALL, 31, of Chicago, sexually abused the inmates inside the MCC in December 2023, according to an indictment returned Tuesday in U.S. District Court in Chicago.  At the time, Hall was a correctional officer for the U.S. Bureau of Prisons, responsible for supervising inmates in Unit 12 of the MCC. Hall resigned from the BOP in 2024.

    The indictment charges Hall with five counts of sexual abuse of a ward, each of which is punishable by up to 15 years in federal prison, and three counts of abusive sexual contact, each of which is punishable by up to two years in federal prison.  Arraignment is scheduled for today at 1:00 p.m. before U.S. Magistrate Judge Heather K. McShain.

    The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and William J. Hannah, Acting Special Agent-in-Charge of the Midwest Regional Office of the Department of Justice’s Office of Inspector General.  The government is represented by Assistant U.S. Attorney Jonathan L. Shih.

    The public is reminded that an indictment contains only charges and 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

  • MIL-OSI Global: Europe-Nato ‘coalition of the willing’ scrambles for collective response to hostility from Trump and threat from Putin

    Source: The Conversation – UK – By Stefan Wolff, Professor of International Security, University of Birmingham

    Six days after the infamous shouting match between the US president and Volodymyr Zelensky, the Ukrainian president is scrambling to try and repair what looked initially like a near-total breakdown in the relationship between the US and Ukraine.

    Zelensky, urged by European leaders, including the British prime minister, Sir Keir Starmer, and the Nato secretary general, Mark Rutte, has tried to mend his ties with Trump. The US president acknowledged as much in his first post-inauguration speech to congress on March 5, saying that he appreciated Zelensky’s readiness to work for peace under US leadership.

    But that happened just 24 hours after he decided to halt all military aid to Ukraine. And since then, the new director of the CIA, John Ratcliffe, and national security adviser, Mike Waltz, have confirmed that intelligence sharing with Kyiv, which was critical to Ukraine’s ability to hit strategic targets inside Russia, has also been suspended.

    Neither of these two moves will have an immediate game-changing effect on the war, but they certainly increase pressure on Ukraine to accept whatever deal Trump will ultimately make with Putin.

    So far, so bad for Zelensky. Yet Trump’s manoeuvring does not only affect Ukraine. It has also had a profound impact on the relationship between the US and Europe. On Sunday March 2, in the aftermath of the White House debacle, Starmer convened an emergency meeting in London with a select number of European leaders, as well as the Canadian prime minister, Justin Trudeau.

    This “coalition of the willing”“ has been in the making for some time now. Its members straddle the boundaries of the EU and Nato, including – apart from the UK – non-EU members Norway and Turkey. Since the relatively disappointing first-ever EU meeting solely focused on defence on February 3 – which was more notable for the absence of a European vision for the continent’s role and place in the Trumpian world order – Europe has embarked on a course of more than just rhetorical change.

    The UK was first out of the blocks. Ahead of Starmer’s visit to Washington, the UK government announced on February 25 an increase of defence spending to 2.5% of GDP by 2027. This was then followed on March 2 with a pledge of additional air defence missiles for Ukraine worth £1.6 billion.

    Europe responds

    In a crucial boost to defence spending at the EU level, the president of the European commission, Ursula von der Leyen, announced the “Rearm Europe” plan on March 4. It is projected to mobilise around €800 billion (£670 million) for European defence.

    This includes a “national escape clause” for EU members, exempting national defence expenditures from the EU’s deficit rules. It also offers a new loan instrument worth up to €150 billion, allows for the use of already allocated funds in the EU budget for defence projects, and proposes partnerships with the private sector through the Savings and Investment Union and the European Investment Bank.

    Perhaps most significantly, in Germany, the two main parties likely to form the next coalition government announced a major shift in the country’s fiscal policy on March 5, which will allow any defence spending above 1% of GDP to be financed outside the country’s strict borrowing rules.

    This marks an important point of departure for Germany. Apart from what it means in fiscal terms, it also sends an important political signal that Germany – the continent’s largest economy – will use its financial and political muscle to strengthen the emerging coalition of the willing.




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    Europe will need thousands more tanks and troops to mount a credible military defence without the US


    Donald Trump reads a letter from Volodymyr Zelensky during his speech to Congress, March 4.

    These are all important steps. Taken together, and provided that the current momentum is maintained, they are likely to accelerate Europe’s awakening to a world in which US security guarantees as no longer absolute.

    The challenges that Europe faces on the way to becoming strategically independent from the US are enormous. But they are not insurmountable.

    The conventional military threat posed by an aggressive and revanchist Russia is more easily manageable with the planned boost to conventional forces and air and cyber defences. Close cooperation with Ukraine will also add critical war-fighting experience which can boost the deterrent effect.

    Europe for now, however, remains vulnerable in terms of its nuclear capabilities, especially if deprived of the US nuclear umbrella and faced with Russia’s regular threats to use its nuclear arsenal – the world’s largest nuclear power by warhead stockpiles.

    But here, too, new strategic thinking is emerging. The French president, Emmanuel Macron, has indicated his willingness to discuss a more integrated European nuclear capability. And in Germany, a country with an otherwise very complex relationship with nuclear weapons, such a European approach has been debated, increasingly positively, for some time, starting during Trump’s first term in office between 2017 and 2021.




    Read more:
    French nuclear deterrence for Europe: how effective could it be against Russia?


    Tectonic shift

    A stronger, and strategically more independent Europe, even if it will take time to emerge, is also crucial for the war in Ukraine. Increased European defence spending, including aid for Ukraine, will help Kyiv in the short term to make up for at least some of the gaps left by the suspension – and possible complete cessation – of US military support.

    In the long term, however, EU accession would possibly open up the route to a security guarantee for Ukraine under article 47.2 of the Lisbon treaty on European Union.

    This so-called mutual defence clause has been derided in the past for lacking any meaningful European defence capabilities. But if the current European momentum towards beefing up the continent’s defences is sustained, it would acquire more teeth than it currently has.

    With the benefit of hindsight, Zelensky may have walked away less empty handed from his clash with Trump last week than it seemed initially. If nothing else, Europeans have since then demonstrated not just in words but also in deeds that they are no longer in denial about just how dangerous Trump is and how much they are now on their own.

    Threatened by both Moscow and Washington, Europe is now on the cusp of a second zeitenwende, the “epochal tectonic shift” that the then German chancellor Olaf Scholz acknowledged after Russia’s full-scale invasion of Ukraine in February 2022. They may finally even have found an answer to the question he posed at the time: “How can we, as Europeans and as the European Union, remain independent actors in an increasingly multi-polar world?”

    Stefan Wolff is a past recipient of grant funding from the Natural Environment Research Council of the UK, the United States Institute of Peace, the Economic and Social Research Council of the UK, the British Academy, the NATO Science for Peace Programme, the EU Framework Programmes 6 and 7 and Horizon 2020, as well as the EU’s Jean Monnet Programme. He is a Trustee and Honorary Treasurer of the Political Studies Association of the UK and a Senior Research Fellow at the Foreign Policy Centre in London.

    Tetyana Malyarenko does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Europe-Nato ‘coalition of the willing’ scrambles for collective response to hostility from Trump and threat from Putin – https://theconversation.com/europe-nato-coalition-of-the-willing-scrambles-for-collective-response-to-hostility-from-trump-and-threat-from-putin-251332

    MIL OSI – Global Reports