NewzIntel.com

Category: Intelligence Agencies

  • MIL-OSI Security: Violent Bridgeport Gang Member Sentenced to 25 Years in Federal Prison

    Source: Office of United States Attorneys

    TREVON WRIGHT, also known as “Tre,” 23, was sentenced today U.S. District Judge Victor A. Bolden in New Haven to 300 months of imprisonment, followed by five years of supervised release, for his involvement in a violent Bridgeport street gang, multiple shootings, and his murder of a rival gang member in 2020. 

    Today’s announcement by Marc. H. Silverman, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Police Chief Roderick Porter; Anish Shukla, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.

    According to court documents, statements made in court, and the evidence presented during a month-long trial, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence.  Wright has been a member of the “East End gang,” which began as a local street gang based in the East End of Bridgeport, but currently has members and associates who are either incarcerated or living throughout Bridgeport and surrounding towns.  The East End gang has been aligned with other groups, including the PT Barnum Gang, the East Side gang and 150, which is a geographic gang based on the West Side of Bridgeport.  These groups were aligned against rival organizations in Bridgeport, including the “Original North End” (“O.N.E.”) and the “Greene Homes Boyz,” (“GHB/Hotz”), based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End.

    Due to the level of gun violence Bridgeport was experiencing, the investigation commenced shortly before East End members shot and killed Myreke Kenion and shot and attempted to kill D’Andre Brown, both members and associates of the GHB/Hotz gang, on January 26, 2020.  The next day, in retaliation for these shootings, GHB/Hotz and O.N.E. members attempted to kill East End gang members and associates in a brazen afternoon shooting in front of a state courthouse on Golden Hill Street in Bridgeport that resulted in four victims being shot while sitting inside a car.

    Wright and other East End members distributed heroin, crack cocaine, marijuana and Percocet pills; used and shared firearms; and committed at least six murders and other acts of violence against rival gang members and other individuals.  East End members celebrated their criminal conduct on social media websites such as Facebook and YouTube, and committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities.

    The investigation determined that on August 23, 2019, Wright shot and wounded an associate of the GHB/Hotz gang and a female companion; on September 15, 2019, Wright shot and attempted to kill Marquis Isreal, also known as “Garf” or “Gbaby,” a member and associate of the O.N.E. gang; on December 8, 2019, Wright shot and attempted to kill Arvan Smith, also known as “Arv Barkley,” an associate of the O.N.E. gang; and on January 26, 2020, Wright shot and killed Myreke Kenion and shot and attempted to kill D’Andre Brown, both members and associates of the GHB/Hotz gang.

    On December 5, 2023, a jury found Wright and three associates guilty of conspiring to engage in a pattern of racketeering activity.

    Wright has been detained since January 21, 2021.

    Approximately 47 members and associates of the East End, O.N.E. and the GHB/Hotz gangs have been convicted of federal offenses stemming from this investigation, which has and solved eight murders and approximately 20 attempted murders.

    This investigation has been conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department.  These cases are being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Stephanie T. Levick, Rahul Kale, and Karen L. Peck.

    This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.

    PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

    Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities.  Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.  If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.

    OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    MIL Security OSI –

  • MIL-OSI USA: Reed Warns DOGE’s Indiscriminate Cuts, Sloppy Work, and Lack of Transparency will Backfire on Republicans & Harm U.S. Taxpayers

    US Senate News:

    Source: United States Senator for Rhode Island Jack Reed

    WATCH: Sen. Reed says DOGE doesn’t want efficient government, it wants to weaken government, blackout oversight & serve Trump and Musk’s interests at the expense of taxpayers

    WASHINGTON, DC – Who is in charge of the so-called Department of Government Efficiency (DOGE)?  What is the agency up to?  Who is it benefitting?  Who is it hurting?  Is DOGE breaking the law?

    These are all simple, reasonable questions — ones that Congress and courts have been asking and ones that the Trump Administration has dodged since January 20, when the president signed an Executive Order that changed the name of the U.S. Digital Service (USDS), a small, technology-based office, and morphed it into the vastly more expansive DOGE with long tentacles extending into the operations of virtually every federal department, agency, and office.

    Today, U.S. Senator Jack Reed (D-RI), the Ranking Member of the Senate Appropriations Financial Services and General Government (FSGG) Subcommittee, which oversees funding for the U.S. Treasury Department, the White House, and other key federal agencies and offices, took to the floor of the U.S. Senate to call out DOGE for its attempted power grab, incompetence, and lack of transparency.

    “Mr. Musk and DOGE have rammed their way into agencies — not to make smart decisions, not to improve efficiency, not to eliminate waste, fraud, and abuse, but to disrupt, denigrate and demoralize.  And along the way, DOGE has made incredible blunders, such as firing and then scrambling to rehire employees at the Nation Nuclear Security Administration (NNSA).  Let me repeat that – Mr. Musk and his minions fired the people who keep nuclear weapons safe,” said Senator Reed. 

    Senator Reed continued.  “Musk and his unvetted coders made the CIA send an unclassified email with the names of its recent hires.  And cut staff from the Federal Aviation Administration and the National Weather Service who prevent and warn every American of travel and weather dangers.  These actions don’t just reflect incredible incompetence — they are dangerous.  They undermine national security and increase risks for American citizens.  In any other setting, blunders like these would be grounds for firing.  But Musk and DOGE operate with arrogance, impunity, and zero transparency.”

    Regarding the question of who is in charge of DOGE, Donald Trump told a Miami audience of investors and corporate executives on February 20: “I signed an order creating the Department of Government Efficiency and put a man named Elon Musk in charge.” Trump made that statement just days after his Administration’s lawyers told federal courts that Mr. Musk isn’t even a part of the federal bureaucracy.

    In terms of what the agency is up to, no one in the Trump Administration has been able to fully say, but Mr. Musk has repeatedly announced broad changes in federal policy well beyond the purview of “modernizing federal technology,” which was the guise Trump used to establish DOGE.  And DOGE has taken unprecedented and illegal actions against federal workers, firing thousands at a time with little planning and even less justification.  DOGE’s mass-firings and unchecked actions are proving to be harmful to both the federal workforce and the broader economy.

    Reed noted that members of the Appropriations Committee typically work together on a bipartisan basis to seek information and conduct oversight in order to ensure that federal dollars are spent in accordance with the laws passed by Congress. 

    “But now, without authorization from Congress, DOGE is recklessly slashing its way through virtually every federal agency, from the Office of Personnel Management to Treasury to HUD, State, USAID, to the Department of Defense and more,” said Reed.  “It is vital that we understand what DOGE is and isn’t.  While Elon Musk tells the American People that DOGE is ‘maximally transparent,’ it is not.”

    Reed pointed out the American people still do not have answers to fundamental questions like:

    •           What is the scope of DOGE’s work?

    •           How many people work at DOGE? And who are they?

    •           Do they also hold jobs outside the Federal government?

    •           What are their financial holdings and potential conflicts of interest?

    •           Do they have allegiances to foreign governments?

    •           Will it respond to requests under the Freedom of Information Act?

    •           What are its plans to reform agencies?

    •           Who is DOGE firing and why?

    During his floor speech, Reed noted that when DOGE does publicly share some limited information, it is frequently wrong.  As the New York Times reported, five of DOGE’s biggest claimed savings were deleted from its website because they were inaccurate.  This includes:

    •           A cancelled USAID contract for $650 million that was counted three times;

    •           A cancelled Social Security contract was erroneously listed as being worth $232 million instead of $560,000; and

    •           A cancelled ICE contract was listed as saving $8 BILLION instead of $8 million.

    “If you’re going to name something the Department of Government Efficiency, don’t you owe it to the taxpayers to actually do a good job?” Reed asked.

    On top of having zero accountability, DOGE’s legal authority to operate is dubious.

    “DOGE is now using the hollowed shell of USDS to illegally undo the American federal government, moving from agency-to-agency cutting congressionally appropriated federal spending, priorities, and even dismantling entire agencies.  The bottom line is that DOGE is without congressional authorization and without directed funding from Congress,” said Reed.  “Based on press reports, it appears to be populated by a mixture of unelected billionaires, tech executives,  and un-vetted, unexperienced people,  including an individual who was found to have posted racist tweets. This gang is being granted access to Americans’ most sensitive data like your bank accounts, your Social Security accounts, and it would seem, a host of classified intelligence.  How are they using this information?  How are they protecting this information from our enemies? Is it being shared with outside entities?” Reed asked.

    Reed concluded: “Every single day that passes without transparency and Congressional access to information about DOGE’s funding, staffing, and scope of work is a moment too long. With the current Continuing Resolution due to expire on March 14th, we have big decisions to make. My hope is that these decisions can be made on a bipartisan basis informed by the facts. But we cannot responsibly fund the government if we do not understand how DOGE has infiltrated it and made it less efficient and responsive to the taxpayers.”

    MIL OSI USA News –

  • MIL-OSI Security: Ionia County Man Sentenced To 210 Months In Federal Prison For Distributing Child Pornography

    Source: Office of United States Attorneys

              GRAND RAPIDS – Acting U.S. Attorney for the Western District of Michigan Andrew Birge today announced that Ethan Eversman, 25, of Ionia, was sentenced to 210 months in federal prison for the distribution of child pornography.

              In May 2024, at Eversman’s request, a 15-year-old child in New York created several sexually explicit videos and sent them to Eversman.  A month later, Eversman sent two of those videos to another person online.   Eversman was a corrections officer for the Eaton County Sheriff’s Office at the time.

              “Today’s sentencing of Ethan Eversman, a former Corrections Deputy, reinforces the FBI’s unwavering commitment to enforcing the highest standards of integrity in law enforcement,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. Members from the FBI’s Lansing Resident Agency, in collaboration with our law enforcement partners at the Michigan State Police, worked tirelessly throughout this investigation, in an effort to halt Mr. Eversman’s predatory actions. I also want to express my gratitude to the U.S. Attorney’s Office of the Western District of Michigan for their vital role in ensuring this child predator faces justice.”

              This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor’s offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, visit www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.

              The FBI and Michigan State Police investigated this case. This case was prosecuted by Assistant United States Attorney Jonathan Roth.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Previously convicted sex offender pleads guilty to federal exploitation & sex trafficking crimes

    Source: Office of United States Attorneys

    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: Previously Convicted Murderer Found Guilty for an April 2021 Homicide

    Source: Office of United States Attorneys

    Defendant Was Released Under Incarceration Reduction Amendment Act (IRAA) While Serving Time for Another Homicide

                WASHINGTON –   Darrell Moore, 47, of Washington, D.C., was found guilty today, by a Superior Court jury, of first-degree murder while armed and other related firearm charges, in connection with the April 2021 murder of Julius Hayes, announced U.S. Attorney Edward R. Martin, Jr. and Chief Pamela Smith, of the Metropolitan Police Department (MPD).

                Moore faces a maximum sentence of life in prison.

                According to the government’s evidence, at approximately 3:50 p.m. on April 3, 2021, Moore drove to the 300 block of 18th Street, NE, in a black sedan. There, Moore approached Mr. Hayes. The two began to argue, but Mr. Hayes walked away from the confrontation. Moore, however, ran at Mr. Hayes, pulled out a handgun and shot Mr. Hayes multiple times in the middle of the street. Moore then went back to the sedan where he paused for a bit, but decided to return to Mr. Hayes to continue the attack. Moore left the area driving south on 18th Street. Officers and medics responded to the scene and discovered Mr. Hayes lying between two parked cars. Mr. Hayes was pronounced dead after he was rushed to the hospital. Moore was arrested on May 11, 2021 and has been in custody since.

                In 1995, at the age of 16, Moore was tried as an adult and convicted of first-degree murder while armed, felony murder, and other charges for the brutal home invasion-killing of a child and the attempted murders of the child’s mother and aunt. Moore committed this crime with his twin brother, who was also convicted and remains incarcerated. On August 7, 2020, Moore was released, over the government’s objection, after receiving a sentence reduction under the Incarceration Reduction Amendment Act (IRAA). Nine months after his release, Moore executed Mr. Hayes in broad daylight in the middle of the street.

                Moore was arrested on May 11, 2021 and has been in custody since.

                In announcing the verdict, U.S. Attorney Martin commended the work of those investigating the case from the MPD, United States Attorney’s Office, ATF Washington Field Division, FBI Washington Field Office, U.S. Secret Service, D.C. Department of Forensic Sciences, DC Department of Corrections, and the United States Marshals Service. Finally, the U.S. Attorney commended Assistant United States Attorneys Nebiyu Feleke and Michael C. Lee for their work in prosecuting this case. 

    MIL Security OSI –

  • MIL-OSI: Medallion Financial Corp. Reports 2024 Fourth Quarter and Full-Year Results

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, March 04, 2025 (GLOBE NEWSWIRE) — Medallion Financial Corp. (NASDAQ: MFIN, “Medallion” or the “Company”), a specialty finance company that originates and services loans in various consumer and commercial industries, along with offering loan origination services to fintech strategic partners, announced today its results for the quarter and full-year ended December 31, 2024.

    2024 Fourth Quarter Highlights

    • Net income was $10.1 million, or $0.43 per share, compared to $14.3 million, or $0.60 per share, in the prior year quarter, and included $1.3 million of taxi medallion recoveries in the current quarter compared to $12.5 million in the prior year quarter.
    • Net interest income grew 6% to $52.0 million from $49.0 million in the prior year quarter.
    • Net interest margin on net loans was 8.15%, compared to 8.50% in the prior year quarter, and on gross loans it was 7.84%, compared to 8.20% in the prior year quarter.
    • Loan originations grew 69% to $285.7 million, compared to $169.1 million in the prior year quarter.
    • Credit loss provision increased to $20.6 million from $10.8 million in the prior year quarter.
    • The Board of Directors increased the quarterly dividend 10% to $0.11 per share.
    • In connection with a pending agreement in principle with the SEC’s Division of Enforcement on terms of settlement, the Company recorded a charge of $3.0 million as well as a benefit of $5.5 million related to insurance coverage of legal costs incurred.

    2024 Full-Year Highlights

    • Net income was $35.9 million, or $1.52 per share, compared to $55.1 million, or $2.37 per share, in the prior year, and included $6.9 million of taxi medallion recoveries in the current year compared to $29.6 million in the prior year.
    • Net interest income grew 8% to $202.5 million from $188.1 million in the prior year.
    • Net interest margin on net loans was 8.35%, compared to 8.68% in the prior year, and on gross loans it was 8.05%, compared to 8.38% in the prior year.
    • Loan originations were $1.0 billion, compared to $960.0 million in the prior year.
    • Total loans, including loans held for sale, grew 12% to $2.5 billion as of December 31, 2024, compared to $2.2 billion a year ago.
    • Credit loss provision increased to $76.5 million from $37.8 million in the prior year.
    • The Company repurchased 570,404 shares of common stock at an average cost of $8.07 per share in the year, for a total of $4.6 million.
    • Total assets grew to $2.9 billion as of December 31, 2024, an 11% increase over December 31, 2023.

    Executive Commentary – Andrew Murstein, President of Medallion

    “We continue to be pleased with our quarterly and full-year performance. In the fourth quarter of 2023, taxi medallion recoveries added $0.37 to our bottom line compared to only $0.04 this quarter. For the full year, and the first time in our history, we originated over $1 billion of loans, more than half of which were high yielding recreation loans. We are quite pleased with this accomplishment.

    Our commercial lending group, Medallion Capital, exited a portfolio investment during the quarter generating net gains of $3.8 million on equity investments, with full year net gains of $6.9 million. Although our equity investments are small, over time they have generated meaningful earnings to our bottom line, with net gains totaling nearly $15 million over the past three years.

    Finally, in the quarter we reached an agreement in principle on terms of settlement and recorded a charge of $3.0 million related to the SEC matter as well as recognized a $5.5 million benefit related to insurance coverage of legal costs associated with this matter. The agreement is subject to approval of the Commissioners of the SEC and the court, and we look forward to bringing closure to this matter. 

    We are quite happy with where we are as a company, especially with the performance we have delivered over the past several years. We finished the year with record total interest income, net interest income, assets, strategic partnership loan volume, and total equity. We believe we are well-positioned for 2025 and the years ahead.” 

    Business Segment Highlights

    Recreation Lending Segment

    • Originations were $72.2 million during the quarter, compared to $62.7 million a year ago.
    • Recreation loans, including loans held for investment and loans held for sale, grew 15% to $1.5 billion, or 62% of total loans, as of December 31, 2024, compared to $1.3 billion, or 60% of total loans, a year ago.
    • Interest income grew 15% to $51.3 million for the quarter, from $44.4 million in the prior year quarter.
    • The average interest rate was 15.07% at year-end, compared to 14.79% a year ago.
    • Recreation loans 90 days or more past due were $10.0 million, or 0.67% of gross recreation loans, as of December 31, 2024, compared to $9.1 million, or 0.70%, a year ago.
    • Allowance for credit loss was 5.00% at year-end for loans held for investment, compared to 4.31% a year ago.
    • In December 2024, we signed a letter of intent to sell up to $121 million of recreation loans at a premium to par value.

    Home Improvement Lending Segment

    • Originations were $82.5 million during the quarter, compared to $66.0 million a year ago.
    • Home improvement loans grew 9% to $827.2 million, or 33% of total loans, as of December 31, 2024, compared to $760.6 million, or 34% of total loans, a year ago.
    • Interest income grew 16% to $19.9 million for the quarter, from $17.2 million in the prior year quarter.
    • The average interest rate was 9.81% at year-end, compared to 9.51% a year ago.
    • Home improvement loans 90 days or more past due were $1.4 million, or 0.17% of gross home improvement loans, as of December 31, 2024, compared to $1.5 million, or 0.20%, a year ago.
    • Allowance for credit loss was 2.48% at year-end, compared to 2.76% a year ago.

    Commercial Lending Segment

    • Commercial loans were $111.3 million at 2024, compared to $114.8 million a year ago.
    • The average interest rate on the portfolio was 12.97%, compared to 12.87% a year ago.

    Taxi Medallion Lending Segment

    • The Company collected $2.6 million of cash on taxi medallion-related assets during the quarter.
    • Total net taxi medallion assets declined to $7.7 million, a 37% reduction from a year ago, and represented less than 0.5% of the Company’s total assets, as of December 31, 2024.

    Capital Allocation

    Quarterly Dividend

    • The Board of Directors declared a quarterly dividend of $0.11 per share, payable on March 31, 2025, to shareholders of record at the close of business on March 17, 2025.

    Stock Repurchase Plan

    • As of December 31, 2024, the Company had $15.4 million remaining under its $40 million share repurchase program. During 2024, the Company purchased 570,404 shares for $4.6 million.

    Conference Call Information

    The Company will host a conference call to discuss its fourth quarter and full-year financial results tomorrow, Wednesday, March 5, 2025, at 9:00 a.m. Eastern time.

    In connection with its earnings release, the Company has updated its quarterly supplement presentation, which is now available at www.medallion.com.

    How to Participate

    • Date: Wednesday, March 5, 2025
    • Time: 9:00 a.m. Eastern time
    • U.S. dial-in number: (833) 816-1412
    • International dial-in number: (412) 317-0504
    • Live webcast: Link to Webcast of 4Q24 Earnings Call

    A link to the live audio webcast of the conference call will also be available at the Company’s IR website.

    Replay Information

    The webcast replay will be available at the Company’s IR website until the next quarter’s results are announced.

    The conference call replay will be available following the end of the call through Wednesday, March 12

    • U.S. dial-in number: (844) 512-2921
    • International dial-in number: (412) 317-6671
    • Passcode: 1019 6407

    About Medallion Financial Corp.

    Medallion Financial Corp. (NASDAQ: MFIN) and its subsidiaries originate and service a growing portfolio of consumer loans and mezzanine loans in various industries. Key industries served include recreation (towable RVs and marine) and home improvement (replacement roofs, swimming pools, and windows). Medallion Financial Corp. is headquartered in New York City, NY, and its largest subsidiary, Medallion Bank, is headquartered in Salt Lake City, Utah. For more information, please visit www.medallion.com.

    Forward-Looking Statements
    Please note that this press release contains forward-looking statements that involve risks and uncertainties relating to business performance, cash flow, net interest income and expenses, other expenses, earnings, growth, and our growth strategy. These statements are often, but not always, made using words or phrases such as “will” and “continue” or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. These statements relate to future public announcements of our earnings, the impact of the pending SEC litigation, expectations regarding our loan portfolio, including collections on our medallion loans, the potential for future asset growth, and market share opportunities. Medallion’s actual results may differ significantly from the results discussed in such forward-looking statements. For example, statements about the effects of the current economy, whether inflation or the risk of recession, operations, financial performance and prospects constitute forward-looking statements and are subject to the risk that the actual impacts may differ, possibly materially, from what is reflected in those forward-looking statements due to factors and future developments that are uncertain, unpredictable and in many cases beyond Medallion’s control. In addition to risks relating to the current economy, a description of certain risks to which Medallion is or may be subject, including risks related to the pending SEC litigation, the settlement of which remains subject to SEC and court approval, please refer to the factors discussed under the heading “Risk Factors” in Medallion’s 2023 Annual Report on Form 10-K.

    Company Contact:
    Investor Relations
    212-328-2176
    InvestorRelations@medallion.com

    MEDALLION FINANCIAL CORP.
    CONSOLIDATED BALANCE SHEETS
    (UNAUDITED)
     
        December 31,  
    (Dollars in thousands, except share and per share data)   2024     2023  
    Assets            
    Cash, cash equivalents, and federal funds sold   $ 169,572     $ 149,845  
    Investment and equity securities     64,003       65,712  
    Loans     2,362,796       2,215,886  
    Allowance for credit losses     (97,368 )     (84,235 )
    Net loans receivable     2,265,428       2,131,651  
    Loans held for sale, at lower of amortized cost or fair value     128,226       —  
    Goodwill and intangible assets, net     169,949       171,394  
    Property, equipment, and right-of-use lease asset, net     13,756       14,076  
    Accrued interest receivable     15,314       13,538  
    Loan collateral in process of foreclosure     9,932       11,772  
    Other assets     32,426       29,839  
    Total assets   $ 2,868,606     $ 2,587,827  
    Liabilities            
    Deposits   $ 2,090,071     $ 1,866,657  
    Long-term debt     232,159       235,544  
    Short-term borrowings     49,000       8,000  
    Deferred tax liabilities, net     20,995       21,207  
    Operating lease liabilities     5,128       7,019  
    Accrued interest payable     8,231       6,822  
    Accounts payable and accrued expenses     24,064       30,804  
    Total liabilities     2,429,648       2,176,053  
    Total stockholders’ equity     370,170       342,986  
    Non-controlling interest in consolidated subsidiaries     68,788       68,788  
    Total equity     438,958       411,774  
    Total liabilities and equity   $ 2,868,606     $ 2,587,827  
    Number of shares outstanding     23,135,624       23,449,646  
    Book value per share   $ 16.00     $ 14.63  
    MEDALLION FINANCIAL CORP.‌
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (UNAUDITED)‌
     
        Three Months Ended December 31,     Years Ended December 31,  
    (Dollars in thousands, except share and per share data)   2024     2023     2024     2023  
    Total interest income   $ 76,519     $ 67,585     $ 290,702     $ 251,040  
    Total interest expense     24,507       18,567       88,167       62,946  
    Net interest income     52,012       49,018       202,535       188,094  
    Provision for credit losses     20,572       10,764       76,502       37,810  
    Net interest income after provision for credit losses     31,440       38,254       126,033       150,284  
    Other income (loss)                        
    Gain on equity investments, net     3,782       2,989       6,917       5,178  
    Gain on sale of loans and taxi medallions     123       413       1,293       4,992  
    Write-down of loan collateral in process of foreclosure     (509 )     (1,393 )     (528 )     (1,696 )
    Other income     846       979       3,648       2,846  
    Total other income, net     4,242       2,988       11,330       11,320  
    Other expenses                        
    Salaries and employee benefits     9,997       9,757       38,344       37,562  
    Loan servicing fees     2,820       2,459       10,771       9,543  
    Collection costs     1,581       1,271       6,380       6,000  
    Regulatory fees     969       710       3,795       3,194  
    Professional fee costs (benefits), net     (4,806 )     1,663       (1,372 )     5,886  
    Rent expense     663       617       2,682       2,472  
    Amortization of intangible assets     361       361       1,445       1,445  
    Penalties     3,000       —       3,000       —  
    Other expenses     2,628       2,246       9,382       9,466  
    Total other expenses     17,213       19,084       74,427       75,568  
    Income before income taxes     18,469       22,158       62,936       86,036  
    Income tax provision     6,815       6,328       21,011       24,910  
    Net income after taxes     11,654       15,830       41,925       61,126  
    Less: income attributable to the non-controlling interest     1,512       1,512       6,047       6,047  
    Total net income attributable to Medallion Financial Corp.   $ 10,142     $ 14,318     $ 35,878     $ 55,079  
    Basic net income per share   $ 0.45     $ 0.63     $ 1.59     $ 2.45  
    Diluted net income per share   $ 0.43     $ 0.60     $ 1.52     $ 2.37  
    Weighted average common shares outstanding                        
    Basic     22,455,498       22,608,243       22,546,051       22,510,435  
    Diluted     23,757,406       23,765,866       23,605,493       23,248,323  
    Dividends declared per common share   $ 0.11     $ 0.10     $ 0.41     $ 0.34  

    The MIL Network –

  • MIL-OSI Security: Violent Recidivist Sentenced to More Than 4 Years in Federal Prison for Racially Motivated Attack on Asian American Woman

    Source: Office of United States Attorneys

    LOS ANGELES – A Southern California man has been sentenced to 51 months in federal prison for punching an Asian American woman in the head while shouting racial slurs and then leaving her bloodied in a Culver City street in 2021, the Justice Department announced today.

    Jesse Allen Lindsey, 38, who was transient at the time of the attack, was sentenced on Monday by United States District Judge Michael W. Fitzgerald.

    Lindsey pleaded guilty in December 2024 to one count of a hate crime. He has been in federal custody since July 2024.

    On June 14, 2021, at approximately 1 a.m., Lindsey began following the victim on her walk to work. According to the government’s sentencing position, Lindsey shouted racial slurs, cursed at the victim, and told her, “You don’t belong here.” He then violently punched her in the head. While the victim lay face down in the street, defendant shouted, “You hear what I said, [N-word]? I said good morning, bitch!”

    Emergency personnel later transported the victim to a hospital to treat injuries to her head and ear. She was unable to work for a month and suffered years of psychological trauma, prosecutors said.

    At sentencing, Judge Fitzgerald called the attack a “shocking and horrible crime” and noted Lindsey’s “serious criminal record.” Lindsey has 13 criminal convictions for firearms and narcotics offenses, domestic battery, grand theft, and attempted extortion. He also has at least 14 violations of probation or pretrial release and 19 additional arrests or contacts with law enforcement, the government said at Monday’s sentencing hearing.

    Lindsey fled California after seeing news reports about the attack. Law enforcement officers eventually located Lindsey in a California state prison serving time for an unrelated conviction. 

    During an interview with law enforcement about the assault, Lindsey eventually admitted to punching the victim, but falsely claimed self-defense, the government’s sentencing position stated. Lindsey said the “little Asian person” was “mouthy” and looked like a “gangbanger.” Referencing the Asian actor known for his martial arts ability, Lindsey claimed the victim might pull “some Jet Li [expletive].” The victim was a middle-aged Asian woman who stood five feet tall and weighed approximately 120 pounds. Lindsey was over six feet tall and weighed approximately 250 pounds.

    The FBI investigated this matter and received substantial assistance from the Culver City Police Department.

    Assistant United States Attorney Lindsey Greer Dotson prosecuted this case.

    MIL Security OSI –

  • MIL-OSI Security: Federal Grand Jury in Louisville Indicts One Former and Two Current Kentucky State Police Troopers for Federal Civil Rights Violations

    Source: Office of United States Attorneys

    Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on March 4, 2025, charging one former and two current Kentucky State Police Troopers with violating individuals’ civil rights while acting as troopers with the Kentucky State Police.

    U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.

    According to the indictment, former Kentucky State Police Trooper Thomas Czartorski, 34, was charged with two counts of using unreasonable force in violation of Title 18, United States Code, Section 242. Kentucky State Police Trooper Jarrod Lewis, 29, was charged with one count of using unreasonable force. Kentucky State Police Trooper James Cameron Wright, 30, was charged with two counts of using unreasonable force and one count of perjury related to false declarations made under oath in connection with a federal civil case involving allegations of civil rights violations.   

    Czartorski, Lewis, and Wright will make initial appearances before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky on April 3, 2025. If convicted, Thomas Czartorski faces a maximum sentence of 20 years in prison. If convicted, Jarrod Lewis faces a maximum sentence of 10 years in prison. If convicted, James Cameron Wright faces a maximum sentence of 25 years in prison.  A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.

    There is no parole in the federal system.

    This case is being investigated by the FBI Louisville Public Corruption Civil Rights Task Force.

    Assistant U.S. Attorneys Christopher Tieke and Stephanie Zimdahl for the Western District of Kentucky and Trial Attorneys Anita Channapati and Katherine DeVar of the Civil Rights Division 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.

    XXX

    MIL Security OSI –

  • MIL-OSI USA: DLNR News Release- Film and TV Stars Ignite Social Media Furor with Turtle Touching, Mar. 3, 2025

    Source: US State of Hawaii

    DLNR News Release- Film and TV Stars Ignite Social Media Furor with Turtle Touching, Mar. 3, 2025

    Posted on Mar 4, 2025 in Latest Department News, Newsroom

     

    STATE OF HAWAIʻI

    KA MOKU ʻĀINA O HAWAIʻI

     

    DEPARTMENT OF LAND AND NATURAL RESOURCES

    KA ‘OIHANA KUMUWAIWAI ‘ĀINA

     

         JOSH GREEN, M.D.
    GOVERNOR

    DAWN CHANG
    CHAIRPERSON

    FILM AND TV STARS IGNITE SOCIAL MEDIA FUROR WITH TURTLE TOUCHING

    FOR IMMEDIATE RELEASE

    March 3, 2025

    (HONOLULU) – Two actresses and their father/manager contacted the DLNR this afternoon, to apologize for creating a social media outburst by posting one of the women touching a sea turtle, while the other videotaped.

    The Instagram post by actress China McClain was taken down as of midday, after garnering tens of thousands of likes and more than, 2,000 comments, many of which pleaded for the video to be taken down and for them to apologize for potential cultural insensitivity. That included Governor Josh Green, M.D.

    China McClain told the DLNR, “I was not fully aware of the situation until today, and I certainly wasn’t aware of the laws. The video was from two years ago when we visited Hawai‘i and I came across it in my phone and decided to post it.” McClain has more than seven million followers on Instagram.

    China and Sierra McClain both say they are sorry, as they didn’t understand the impact the video had. “It’s the people I don’t want to hurt. I understand respecting culture, and I understand the pain that comes with not having your culture respected. Those are never lines that we cross intentionally, so that part of this situation is hurting us right now. I adore these beautiful turtles, and the people of Hawai‘i. We’re very sorry,” China said.

    “We have an immense amount of respect for the residents of Hawai’i and their intent to safeguard their land & their wildlife, and we plan to take the necessary precautions in the future when traveling,” Sierra said.

    State and federal agencies charged with protecting marine species like Hawaiian sea turtles became aware of the post on Monday. The DLNR made multiple phone calls and sent e-mails to the McClain sisters, their managers, publicists, record labels and production companies to ask that the post be taken down.

    Michael McClain, the sister’s father and manager said, “We want people to know that China was not aware of the laws, and we appreciate that people and the agencies reached out.”

    “All our family loves and respects Hawai‘i and we apologize for inadvertently causing this pain,” he added.

    Touching turtles is not necessarily breaking the law, unless law enforcement agencies determine that the actions are a “take.”  For example, if a person’s actions in some way harm a turtle or alter a turtle’s behaviors, there are a variety of state and/or federal laws that a person could be charged with.

    The DLNR said, “On its face their activity may not have been a violation of state or federal rules that protect endangered or threatened species like turtles, but it certainly ignored wildlife viewing guidelines developed by NOAA, the U.S. Fish and Wildlife Service (USFWS), and the DLNR.”

    • Keep at least 10 feet away from sea turtles
    • Avoid touching, chasing, feeding, or interfering with adults and hatchlings
    • Avoid blocking their access to or from the ocean

    As this was not directly witnessed or reported by someone, it is difficult for state or federal conservation law enforcement agencies to establish intent.

    For many years, the agencies have conducted extensive outreach on Hawai‘i wildlife viewing protocols.

    Brian Neilson, DLNR Division of Aquatic Resources Administrator said, “Although we understand it was probably not intentional, this is not a pono way to interact with Hawaiian wildlife. We encourage the sharing of positive behaviors on social media to inspire others to appreciate and protect our beautiful surroundings.”

    # # #

      

    RESOURCES

    Learn how you can help protect Hawaiʻi marine wildlife through reporting:

    Media Contact:

    Dan Dennison

    Communications Director

    Hawaiʻi Dept. of Land and Natural Resources

    808-587-0396

    MIL OSI USA News –

  • MIL-OSI Security: Cape Girardeau Man Sentenced to 30 Years in Federal Prison for Producing Child Pornography

    Source: Office of United States Attorneys

    CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced a man who admitted recording his sexual activity with a child to 30 years in prison.

    Steven Lee Brown, 33, of Cape Girardeau, Missouri, pleaded guilty in U.S. District Court in Cape Girardeau in December to one count of producing child pornography.

    According to court documents, the Cape Girardeau County Sheriff’s Office received a report that Brown had sexually abused a 10-year-old child last May. The child was interviewed and confirmed the abuse. Officers immediately responded to Brown’s residence. During an interview, Brown admitted that he engaged in various sexual acts with the child. Brown further admitted that he used his cell phone to record some of the sexual activity. Officers seized Brown’s phone and discovered sexually explicit images of the minor child on the device. At his guilty plea hearing, Brown admitted that he used his cell phone to produce the sexually explicit material. After serving his 30-year sentence, Brown will be subject to lifetime supervised release.

    This case was investigated by the Cape Girardeau County Sheriff’s Office and the FBI. Assistant U.S. Attorney Jack Koester handled the prosecution for the Government.

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

    MIL Security OSI –

  • MIL-OSI Security: Baltimore County Man Sentenced to Federal Prison for Role in Elder Fraud Schemes

    Source: Office of United States Attorneys

    Defendant alleged to have received and transmitted victim funds to fraudsters.

    Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher has sentenced Ambrose A. Obinna Warrior, 44, of Milford Mill, Maryland, to 42 months in federal prison. Warrior served as an unlicensed money transmitter in connection with various romance, business email compromise, and investment schemes.

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation (FBI), Baltimore Field Office; Special Agent in Charge Mehtab Syed, FBI Salt Lake City Field Office; and Acting Postal Inspector in Charge Ajay Lall, U.S. Postal Inspection Service – Washington Division.

    According to the plea agreement, beginning in March 2018, and continuing through at least August 2021, Warrior received victims’ funds and transferred them to other scheme participants through federally insured financial institutions in exchange for a percentage.  Warrior opened personal and business bank accounts and formed the limited liability company, The Golden Voice of Orientals, to conduct, control, manage, and direct his unlicensed money transmitting business.

    Additionally, Warrior used WhatsApp to communicate bank account information to other scheme participants and his fee for receiving and transmitting funds from victims, which was usually 20 percent or more.  After depositing the funds, Warrior retained a portion of the money as a fee and ensured others received a portion of the fraudulent funds.  Warrior also transferred victims’ funds to scheme participants overseas.

    In total, Warrior transmitted or attempted to transfer more than $700,000 in proceeds from various schemes. Victims lost at least $467,912.

    Reporting from consumers about fraud and fraud attempts is critical to law enforcement’s efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older, and has been a victim of financial fraud, help is available. Call the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311).  This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers through assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis.  The hotline is staffed from 10 a.m.-6 p.m., Monday through Friday.  English, Spanish, and other languages are available.  Learn more about the Department’s Elder Justice Initiative at www.elderjustice.gov.  Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.

    U.S. Attorney Hayes commended the FBI and United States Postal Inspection Service for their work in the investigation.  Ms. Hayes also thanked Assistant U.S. Attorneys Evelyn Lombardo Cusson and Adeyemi Adenrele who prosecuted the federal case. The FBI’s Baltimore and Salt Lake City Field Offices, along with the St. George Resident Agency, investigated this case.

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

    # # #

     

    MIL Security OSI –

  • MIL-OSI Security: Parents of Former Boone County Schools Maintenance Director Plead Guilty to Evading Financial Reporting Requirements

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

    CHARLESTON, W.Va. – Michael P. Barker, 68, and Lana Barker, 66, both of Foster, pleaded guilty today to structuring transactions with one or more domestic financial institutions.

    According to court documents and statements made in court, starting on or about November 7, 2023, through on our about November 28, 2023, the Barkers made or caused to be made 11 cash deposits to their bank accounts in amounts ranging from $8,000 to $9,500 and totaling $97,215. The Barkers admitted that these transactions were specifically designed to avoid currency reporting requirements. Financial institutions are required to report cash deposits of more than $10,000, and federal law prohibits structuring multiple cash deposits to avoid this reporting requirement.

    The Barkers furthered admitted that they used the $97,215, a $30,000 bank loan, and $50,000 provided by their son, former Boone County Schools Maintenance Director Michael David Barker, to purchase property in Foster.

    Michael P. Barker is scheduled to be sentenced on June 23, 2025, and Lana Barker is scheduled to be sentenced on July 1, 2025. Each faces a maximum penalty of five years in prison, up to three years of supervised release, a fine of up to $250,000, and a forfeiture money judgment.

    Today’s guilty pleas result from an investigation that led to the indictment of Michael David Barker, 47, of Foster, by a federal grand jury on December 10, 2024. The 18-count indictment alleges that Michael David Barker entered into a scheme to defraud the Boone County Board of Education out of approximately $3,400,000 while serving as maintenance director. The charges against Michael David Barker are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    Jesse Marks, 65, of Rush, Kentucky, pleaded guilty on February 27, 2025, to conspiracy to commit mail fraud. Marks was the sole owner and operator of Rush Enterprises when Michael David Barker contacted him in November 2019 about Rush Enterprises selling custodial and janitorial supplies to Boone County Schools. Marks admitted that he and Barker entered into the overbilling scheme at that time. Marks is scheduled to be sentenced on June 16, 2025.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the U.S. Department of Education, Office of Inspector General, the Internal Revenue Service-Criminal Investigations (IRS-CI), the West Virginia State Police and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU), and the assistance provided by the West Virginia Department of Education.

    United States District Judge Thomas E. Johnston presided over the hearings. Assistant United States Attorney Gabriel Price is prosecuting the cases.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:25-cr-4 (Michael P. Barker) and 2:25-cr-5 (Lana Barker).

    ###

     

     

    MIL Security OSI –

  • MIL-OSI Security: Final Defendant Pleads Guilty to Role in Drug Trafficking Organization

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

    BECKLEY, W.Va. – Jermaine Antoine Johnson, 34, of Beckley, pleaded guilty today to conspiracy to distribute methamphetamine and fentanyl. Johnson admitted to his role in a drug trafficking organization (DTO) that distributed methamphetamine and fentanyl as well as cocaine base, also known as “crack,” in Beckley and elsewhere within the Southern District of West Virginia.

    According to court documents and statements made in court, Johnson participated in the DTO conspiracy in April and May 2024. Johnson admitted to supplying others with controlled substances that they distributed. Johnson further admitted that he spoke to co-conspirators about obtaining and distributing fentanyl during May 2024 phone calls that were intercepted by law enforcement.

    During a May 15, 2024, phone call, Johnson told a co-conspirator about a supplier prepared to sell controlled substances to them, and the two discussed providing $6,000 to this supplier for drugs they planned to distribute in and around the Southern District of West Virginia. Johnson admitted that he was picked up by the co-conspirator on May 20, 2024, and the two traveled to Baltimore, Maryland, where they purchased approximately $6,000 worth of fentanyl. Johnson further admitted that he and his co-conspirator returned to West Virginia the next day and discussed increasing the volume of the purchased fentanyl by adding such cutting agents as sugar and brown sugar.

    Johnson is scheduled to be sentenced on July 3, 2025, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.

    Johnson is among 12 individuals indicted on charges alleging the defendants conspired to distribute methamphetamine, fentanyl, and cocaine base within the Southern District of West Virginia from in or about June 2023 to in or about May 2024. All 12 have pleaded guilty, including two defendants who pleaded guilty to separate charges in lieu of the offenses alleged in the indictment.

    “Today’s guilty plea marks a major milestone in this case, which has disrupted a significant drug trafficking operation in the Beckley area,” said Acting United States Attorney Lisa G. Johnston. “The fact that all 12 defendants have pleaded guilty is also a testament to the teamwork of our law enforcement partners and this office and to our shared dedication to protecting our communities.”

    Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.

    United States Magistrate Judge Omar J. Aboulhosn presided over today’s hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.

    The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-90.

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    MIL Security OSI –

  • MIL-OSI Security: OKX Pleads Guilty to Violating U.S. Anti-Money Laundering Laws and Agrees to Pay Penalties Totaling More Than $500 Million

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

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York, and James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Aux Cayes Fintech Co. Ltd, d/b/a “OKEx,” d/b/a “OKX” (“OKX”), a Seychelles-based entity, that since at least 2017 has operated OKX, one of the largest cryptocurrency exchanges in the world, pled guilty today to one count of operating an unlicensed money transmitting business. In connection with today’s guilty plea and sentencing, OKX agreed to pay monetary penalties totaling more than $504 million.  The case was assigned to U.S. District Judge Katherine Polk Failla, who presided over today’s guilty plea and sentencing.

    Acting U.S. Attorney Matthew Podolsky said: “For over seven years, OKX knowingly violated anti-money laundering laws and avoided implementing required policies to prevent criminals from abusing our financial system. As a result, OKX was used to facilitate over five billion dollars’ worth of suspicious transactions and criminal proceeds.  Today’s guilty plea and penalties emphasize that there will be consequences for financial institutions that avail themselves of U.S. markets but violate the law by allowing criminal activity to continue.”

    FBI Assistant Director in Charge James E. Dennehy said: “For years, OKX flagrantly violated U.S. law, actively seeking customers in the United States—including here in New York—and even going so far as to advise individuals to provide false information to circumvent requisite procedures. Furthermore, in their failure to adhere to U.S. law, significant illicit transactions which furthered other criminal activity went undetected on their platform. Blatant disregard for the rule of law will not be tolerated, and the FBI is committed to working with our partners across government to ensure that corporations that engage in this type of conduct are held accountable for their actions.”

    According to court documents and admissions: 

    OKX is one of the world’s largest cryptocurrency exchange platforms, with billions of dollars’ worth of cryptocurrency transactions occurring daily on its platform.  OKX allows registered users to place orders for spot trades in over three hundred cryptocurrencies, including Bitcoin and Ethereum. OKX users can also place orders for derivative products, including futures contracts, tied to the value of Bitcoin and other cryptocurrencies. 

    Financial institutions that operate wholly or in substantial part in the United States must register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) as a money services business (“MSB”) and comply with federal anti-money laundering (“AML”) laws, including the Bank Secrecy Act.  These laws require the filing of suspicious activity reports and the maintenance of an adequate AML program, including an effective know-your-customer (“KYC”) program. AML programs are critical to ensure that entry-points into the U.S. financial system do not become tools criminals can use to profit from illicit activity.

    Since 2017, OKX has had an official policy preventing U.S. persons from transacting on its exchange. But contrary to this official policy, OKX sought out customers in the United States, including in the Southern District of New York. 

    From in or about 2018 through in or about at least early 2024, OKX served U.S. retail and institutional customers that engaged in over one trillion dollars’ worth of transactions through OKX. Transactions from those U.S. customers generated hundreds of millions of dollars in trading fees and profits for OKX. 

    Because OKX served U.S. retail and institutional customers, OKX knew it was required by U.S. law to register as a money services business with FinCEN, but OKX chose not to do so.[1] In fact, despite OKX’s official policy prohibiting U.S. persons from transacting on the exchange, OKX was fully aware that individuals in the United States could, and did, easily create and use OKX trading accounts.  From OKX’s founding in approximately 2017 through approximately November 2022, OKX allowed retail customers the option to create an account, receive and transfer funds, and place trades without completing a KYC process. This meant that OKX, a large financial institution, facilitated transactions on behalf of customers that it could not identify. Further, while OKX implemented a policy blocking customers with U.S.-located IP addresses from trading or depositing assets onto OKX (the “IP Ban”), OKX knew that the IP Ban could be circumvented through cheap, widely available VPN technology.  Also, through at least early 2023, OKX allowed existing accounts to continue to receive and transfer funds, and place trades, all without completing a KYC process.  And until approximately early 2024, OKX also allowed customers to place trades on the exchange through third-party entities known as “non-disclosure brokers” without the third-party entity disclosing any identifying information to OKX about the customers on whose behalf the trades were placed. 

    Even after OKX began requiring all customers to provide some KYC information to trade, OKX employees on certain occasions advised customers how to provide false information to circumvent the company’s KYC process and official policy prohibiting U.S. customers.  For example, in April 2023, an OKX employee encouraged a potential U.S. customer to open an account by providing false information about the customer’s nationality during the KYC processing, writing “I know you’re in the US, but you could just put a random country and it should go through. You just need to put Name, nationality, and ID number. You could just put United Arab Emirates and random numbers for the ID number.”  At that time, OKX did not verify the information that customers provided to open an account to trade.  In January 2024, the same employee wrote to another potential U.S. customer and asked if the individual had “any workaround on KYC outside of the US to make it potentially work.”

    During the relevant period, OKX advertised in the United States, sponsoring the Tribeca Film Festival, for example, and used affiliate marketers based in the United States to promote the exchange. OKX also allowed existing customers to promote the exchange, and provided such customers benefits for recruiting additional users. At least one such OKX customer produced a publicly-available, step-by-step instructional video educating U.S. customers about how to register with OKX using a VPN to conceal their U.S. presence.

    OKX also focused its efforts on attracting and retaining certain U.S. institutional customers, including large institutions who could provide liquidity and help OKX become one of the world’s largest cryptocurrency exchanges by making a broad range of cryptocurrencies available at competitive rates.  OKX’s U.S. institutional customers were some of OKX’s largest customers, with one such firm alone generating more than a trillion dollars in spot and derivatives transactions on OKX during the relevant period.  They provided significant liquidity, volume and trading fees for the platform, despite OKX’s knowing failure to register as an MSB and OKX’s “official” policy banning U.S. customers.

    Until approximately May 2023, OKX did not adequately or consistently use commercially available software to monitor and detect suspicious activity, including money laundering, and OKX did not have adequate controls to determine whether either party to transactions on the exchange was potentially subject to sanctions imposed by the U.S. Treasury Department. As a result, through at least early 2024, OKX was used by numerous customers as a vehicle for laundering the proceeds of suspicious and criminal activities, including more than five billion dollars of suspicious transactions and illicit proceeds, based on a review of third-party transaction data.

    In early 2024, OKX retained an external compliance consultant (the “Consultant”) to advise OKX on policies and controls reasonably designed to prevent U.S. persons from engaging in transactions on OKX’s platform through accounts held at OKX.  As part of the plea agreement, OKX is continuing to retain the Consultant, at its own cost, through February 2027, and has agreed to continue to cooperate with the United States Attorney’s Office.

    *                *                *

    In addition to the guilty plea, OKX, a Seychelles-based entity, also agreed to criminally forfeit $420.3 million and pay a criminal fine of approximately $84.4 million.  OKX received credit for its cooperation with the investigation and timely engaging in remedial measures, resulting in a 25% reduction off the bottom of the otherwise applicable recommended fine range.

    Mr. Podolsky praised the outstanding investigative work of the FBI New York Field Office. 

    This matter is being handled by the Office’s Illicit Finance & Money Laundering Unit.  Assistant U.S. Attorneys Christopher D. Brumwell, Eli J. Mark, and Vladislav Vainberg are in charge of the prosecution.

    [1] OKX has an affiliate U.S.-based cryptocurrency exchange named OKCoin USA, Inc. (“OKCoin”) which, in contrast with OKX, has registered with FinCEN as a MSB. OKCoin serves customers globally, including in the United States, and offers retail and institutional customers the ability to spot trade, including purchasing cryptocurrency using U.S. dollars. The conduct described herein that gives rise to the charge in the Information, and to which OKX pled guilty, is solely that of the unregistered MSB, Aux Cayes Fintech Co. Ltd., d/b/a “OKEx,” d/b/a “OKX,” the defendant.

    MIL Security OSI –

  • MIL-OSI USA: Former Prison Guard Pleads Guilty to Sexually Abusing Inmates

    Source: US State of California

    A Hawaii man pleaded guilty yesterday to sexual abuse of inmates under his custody or control.

    According to court documents, Mikael Rivera, 47, of Kapolei, was a correctional officer at the Federal Detention Center in Honolulu from approximately 2014 to 2018. While on duty as a correctional officer, Rivera committed multiple sexual acts with one inmate who did not consent and engaged in sexually abusive conduct with two additional inmates under his supervision.

    Rivera pleaded guilty to six counts of sexual abuse of a ward. He is scheduled to be sentenced on July 3 and faces a maximum penalty of 15 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Ken Sorenson for the District of Hawaii, and Special Agent in Charge Zachary Shroyer of the Department of Justice Office of the Inspector General (DOJ-OIG) Western Region made the announcement.

    DOJ-OIG is investigating the case with assistance from the FBI.

    Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Sara Ayabe for the District of Hawaii are prosecuting the case, with substantial assistance from former PIN Deputy Chiefs Jennifer Clarke and Marco Palmieri.

    MIL OSI USA News –

  • MIL-OSI Security: Jackson Man Pleads Guilty to Child Exploitation, Cyberstalking, and Sextortion Offenses

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

    Jackson, MS – A Jackson man entered a guilty plea to federal charges relating to a “sextortion” scheme that targeted multiple victims, including minors, across several states.

    According to court documents and statements made in court, Marquez Cameron Jones Weston, 22, operated a “sextortion” scheme in which he engaged in cyberstalking, interstate threats, extortion, attempted production of child pornography, and transportation of child pornography over the internet. As part of the scheme, Weston attempted to and did extort money and sexually explicit photographic images and videos from numerous female victims, some of whom were minors, over the internet.

    Weston pleaded guilty to attempted production of child pornography, transportation of child pornography over the internet, extortion, and cyberstalking. He is scheduled to be sentenced on August 27, 2025 and faces a mandatory minimum sentence of at least 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting U.S. Attorney Patrick A. Lemon of the Southern District of Mississippi and Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement.

    The FBI is investigating the case with assistance from the Sam Houston State University Police Department.

    Assistant U.S. Attorneys Kimberly T. Purdie and Dave Fulcher are prosecuting the case.

    The FBI provides the following six tips on how people can protect themselves from sextortion schemes:

    • Be selective about what you share online. If your social media accounts are open to everyone, a predator may be able to figure out a lot of information about you.
    • Be wary of anyone you encounter for the first time online. Block or ignore messages from strangers.
    • Be aware that people can pretend to be anything or anyone online. Videos and photos are not proof that people are who they claim to be. Images can be altered or stolen. In some cases, predators have even taken over the social media accounts of their victims.
    • Be suspicious if you meet someone on one game or app and this person asks you to start talking on a different platform.
    • Be in the know. Any content you create online—whether it is a text message, photo, or video—can be made public. And nothing actually “disappears” online. Once you send something, you don’t have any control over where it goes next.
    • Be willing to ask for help. If you are getting messages or requests online that don’t seem right, block the sender, report the behavior to the site administrator, or go to an adult. If you have been victimized online, tell someone.

    If you, your child, or someone you know is being exploited via sextortion, contact your local FBI field office, call 1-800-CALL-FBI (1-800-225-5324), or report it online at the Internet Crime Complaint Center (IC3). Additional resources can found at Sextortion and Financially Motivated Sextortion — FBI.  If you believe you are a victim in this particular case, please also contact the United States Attorney’s Office for the Southern District of Mississippi.

    MIL Security OSI –

  • MIL-OSI Security: Pitt County Man Pleads Guilty in Multimillion-Dollar Ponzi Scheme that Defrauded Eastern North Carolina Investors

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

    WILMINGTON, N.C. – Willard Timothy Sutton, age 64, pled guilty to one count of mail fraud today for running a Ponzi scheme that resulted in more than 60 investors suffering net losses in excess of $8 million.  At sentencing later this year, Sutton faces a statutory maximum sentence of 20 years, a $250,000 fine, and three years of supervised release.  Sutton will also be required to pay restitution to victims.

    According to court documents and other information presented in court, between approximately 2019 and 2023, Sutton operated a largescale Ponzi scheme in connection with an investment program offered through Greenville Auto World, LLC (GAW), a car dealership located in Greenville.  GAW was a “buy here pay here” (BHPH) dealership.  BHPH dealerships enable customers with poor or no credit history to finance the purchase of a vehicle directly through the dealership, rather than through a bank or credit union.  Such loans typically carry significantly higher interest rates than traditional car loans.  Between approximately 2012 and 2023, as part of an investment program sponsored, promoted, and administered by GAW, Sutton sold BHPH finance contracts to outside investors through direct solicitation, referrals, and word-of-mouth advertisement.

    Beginning in approximately 2019, Sutton falsely and fraudulently led BHPH investors to believe that their investments were safe and secure, and that GAW was collecting sufficient repayments from loan customers to be able to fully pay the principal and interest owed to them.  In truth, GAW was collecting millions from investors, but it did not have the means to service the debt through BHPH revenue or any legitimate business income.  Between approximately October 2018 and August 2023, the FBI estimates that GAW collected investor funds in excess of $60 million.  However, GAW’s gross receipts were a small fraction of the total.

    In order to conceal GAW’s financial condition, and avoid the collapse of the business, Sutton operated the BHPH program as a Ponzi scheme in which he would (in a typical transaction) sell a legitimate loan contract to one investor and then sell one or more false and fabricated versions of that same contract to other investors without their knowledge.  Sutton then used the proceeds of the fraudulent sales to pay off earlier investors.  Among other things, Sutton forged loan customer signatures to the fake contracts and, in some instances, provided fake title documents to investors to convince them that their investments were appropriately secured.   

    In approximately 2022, in order to generate additional funds to meet GAW’s mounting debts to investors, Sutton solicited some BHPH investors to help finance GAW’s vehicle inventory.  Sutton falsely and fraudulently represented to these investors that he was using their funds to purchase vehicles when, in fact, Sutton was using their funds to conceal and perpetuate the Ponzi scheme.

    “Over the course of years, instead of helping so-called investors, this defendant bilked his victims out of millions of dollars of their hard earned money,” said Acting U.S. Attorney Daniel P. Bubar. “Fraudsters should know that they will be held accountable for their crimes in the Eastern District of North Carolina.”

    “Mr. Sutton ran a local business for many years, purporting to help those with poor or no credit get much needed vehicle loans. When he ran into financial trouble, rather than admitting his business was failing, he resold those loans over and over again to outside investors to protect his own reputation at the expense those who trusted he was legitimately investing their hard earned money,” said Robert M. DeWitt the FBI Special Agent in Charge in North Carolina.    

    Daniel P. Bubar, Acting United States Attorney for the Eastern District of North Carolina, made the announcement after Chief Judge Richard E. Myers, II accepted the plea. The Federal Bureau of Investigation, Charlotte Field Office, investigated the case.  Assistant United States Attorney Adam F. Hulbig prosecuted the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:24-CR-83-M.

    ###

    MIL Security OSI –

  • MIL-OSI Security: Former Prison Guard Pleads Guilty to Sexually Abusing Inmates

    Source: United States Attorneys General 6

    A Hawaii man pleaded guilty yesterday to sexual abuse of inmates under his custody or control.

    According to court documents, Mikael Rivera, 47, of Kapolei, was a correctional officer at the Federal Detention Center in Honolulu from approximately 2014 to 2018. While on duty as a correctional officer, Rivera committed multiple sexual acts with one inmate who did not consent and engaged in sexually abusive conduct with two additional inmates under his supervision.

    Rivera pleaded guilty to six counts of sexual abuse of a ward. He is scheduled to be sentenced on July 3 and faces a maximum penalty of 15 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Ken Sorenson for the District of Hawaii, and Special Agent in Charge Zachary Shroyer of the Department of Justice Office of the Inspector General (DOJ-OIG) Western Region made the announcement.

    DOJ-OIG is investigating the case with assistance from the FBI.

    Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Sara Ayabe for the District of Hawaii are prosecuting the case, with substantial assistance from former PIN Deputy Chiefs Jennifer Clarke and Marco Palmieri.

    MIL Security OSI –

  • MIL-OSI Security: Former Gow School Administrator Pleads Guilty to Production of Child Pornography

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

    BUFFALO, N.Y.-U.S. Attorney Michael DiGiacomo announced today that Matthew Fisher, 51, of South Wales, NY, pleaded guilty before U.S. Magistrate Judge Jeremiah J. McCarthy to production of child pornography, which carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.

    Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that between June 2022, and November 2023, Fisher was employed as the Associate Director of Enrollment and Management at the Gow School, a private boarding school in South Wales, NY. Fisher resided on the Gow School campus. He utilized hidden cameras to create and attempt to create videos of at least five minor males engaged in sexually explicit conduct. During the investigation, several of Fisher’s electronic devices were seized and found to contain child pornography depicting the five victims and several yet to be identified minor individuals.

    The plea is the result of an investigation by the Federal Bureau of Investigation, Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger, the Niagara Frontier Transportation Authority Transit Police Department, under the direction of Chief Brian Patterson, and the East Aurora Police Department, under the direction of Chief Patrick Welch.

    Sentencing will be scheduled at a later date.

    # # # #

    MIL Security OSI –

  • MIL-OSI Security: Superseding Indictment Charges Two Brothers and a City Mayor’s Assistant with Tax Fraud, Public Corruption, and Money Laundering

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

    CLEVELAND – A federal grand jury returned a 32-count superseding indictment charging Zubair Mehmet Abdur Razzaq Al Zubair, 42, recently of Bratenahl, Ohio, his brother Muzzammil Muhammad Al Zubair, 31, recently of Pepper Pike, Ohio, and their associate Michael Leon Smedley, 56, of Cleveland, with multiple fraud, tax fraud, money laundering, and public corruption schemes. The initial 22-count indictment was issued Jan. 24, 2024.

    All three defendants were charged with conspiracy to commit bribery concerning programs receiving federal funds, conspiracy to commit honest services wire fraud, and Hobbs Act conspiracy. The Al Zubair brothers were both charged with conspiracy to commit wire fraud, 13 counts of wire fraud, money laundering conspiracy, four counts of money laundering, theft of government funds, and aiding and assisting in the preparation of a false tax return. Zubair Al Zubair was also charged with harboring a fugitive and willful failure to file a tax return.

    According to court documents, from June 2020 through August 2023, the Al Zubair brothers allegedly employed several deceptive strategies to obtain money and property from victims. Their schemes involved investment fraud, a Small Business Administration COVID-19 relief Emergency Income Disaster Loan, cryptocurrency mining, and commercial and residential real estate transactions.

    One scheme was international in scope and involved military munitions. After the Al Zubair brothers found a buyer who was looking to purchase military-grade weapons, they made contact with individuals in Romania, the United Arab Emirates, Indonesia, and New York about finding sources to supply the munitions their buyer was seeking. The true intent was not the actual sale of the munitions, but rather to convince the purchaser to transfer a commission to the brothers for arranging the transaction.

    The Al Zubair brothers’ ill-gotten proceeds allowed them to acquire a trove of jewelry, luxury timepieces and vehicles, as well as more than 80 firearms. Zubair Al Zubair also leased a high-end residential property in Bratenahl, Ohio, before being evicted in August 2023.

    The superseding indictment alleges that the two made exorbitant claims about their extraordinary wealth and government connections. Zubair Al Zubair said he was a member of the royal family of the United Arab Emirates through his marriage to a princess. His brother, Muzzammil, claimed to be a hedge fund manager. According to the superseding indictment, he was not registered with the Securities and Exchange Commission or as a broker with the Financial Industry Regulatory Authority, and his only education on hedge funds came from watching YouTube videos. Using the illusion of being extremely educated, successful, and well-connected, the brothers befriended a public official employed with the city of East Cleveland to help them to carry out their elaborate and deceptive plots.

    As the chief of staff and executive assistant to the mayor of East Cleveland, Smedley allegedly used his position to help navigate red-tape bureaucracy and obtain specific outcomes for the Al Zubair brothers in return for things of value including checks, food and meals at high-end restaurants, and offers of future employment. For example, Smedley secured official letters on city letterhead to sway administrative and judicial proceedings, helped obtain appointment of Zubair Al Zubair as an International Economic Advisor to the city, obtained city business cards in Zubair Al Zubair’s name, and even provided the brothers with City of East Cleveland Police Badges.

    An indictment is only a charge and is not evidence of guilt. The defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

    If convicted, each defendant’s sentence will be determined by the court after review of actors unique to this case. These include each defendant’s prior criminal record, if any, role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.

    This case is being investigated by the FBI Cleveland Division and the IRS−Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd and Om Kakani for the Northern District of Ohio. 

    MIL Security OSI –

  • MIL-OSI: Paperclip SAFE to Present Keynote at The Official Cybersecurity Summit in New York

    Source: GlobeNewswire (MIL-OSI)

    HACKENSACK, N.J., March 04, 2025 (GLOBE NEWSWIRE) — Paperclip Inc. (OTCMKTS:PCPJ), an innovative data security and content management company, is a presenting sponsor at The Official Cybersecurity Summit: New York on Thursday, March 6. Paperclip’s CRO Chad Walter will be presenting a keynote titled ‘Post-Quantum Readiness: Now, Later, or Never?’ The presentation will take place at 10:05 a.m. in the Metropolitan Ballroom at Sheraton New York Times Square Hotel.

    The New York Cybersecurity Summit connects C-Suite & Senior Executives responsible for protecting their companies’ critical infrastructures with innovative solution providers and renowned information security experts. This educational forum will focus on sharing best practices and innovations designed to protect highly vulnerable business applications and critical infrastructure. Attendees will have the opportunity to meet the nation’s leading solution providers and discover the latest products and services for enterprise cyber-defense.

    “We’re excited to be back in New York for the Official Cybersecurity Summit after making so many great connections last year,” said Chad Walter, CRO at Paperclip. “I’ll be presenting on a topic that’s on everyone’s mind in the cybersecurity field—Post-Quantum Computing and Cryptography. As a cybersecurity community we have a responsibility to share new ideas and innovations, which is why it’s critical to bring attention to data-centric security and the latest encryption technologies.”

    Analysts are making bold statements about post-quantum cryptography, even going so far as to encourage organizations to build out post-quantum ready environments in 2025. Paperclip’s keynote presentation will explore whether the industry is ringing the alarm bell too early, the implications of jumping ahead to a post-quantum world, and distinguish other priorities that should take precedent over the post-quantum hype.

    At the event, Paperclip will also have a booth to showcase its SAFE solution, a breakthrough encryption technology that keeps private data encrypted at all points of its lifecycle. SAFE is the only always-encrypted data security platform that works at the speed of business, working with the fluidity of data instead of against it. Paperclip also specialized in secure content management, data transcription, and fully encrypted email and e-sign technologies.

    You can still register and attend Thursday’s event using Paperclip’s code CSS25-Paperclip. For more information on the Cyber Security Summits, to register for the NY event or view the show agenda, visit https://cybersecuritysummit.com/.

    About Paperclip, Inc.

    Paperclip is a proven technology partner that continues to revolutionize data security, content and document management for Fortune 1,000 companies worldwide. Every second of every day, our innovative solutions are securely processing, transcribing, storing, and communicating highly sensitive content across the internet. Maximizing efficiency to save millions annually, while maintaining absolute security and compliance. For more information, visit paperclip.com.

    About SAFE

    Paperclip SAFE builds on the foundation of trust and collaboration that Paperclip has established with its security and content management solutions over three decades. Paperclip SAFE utilizes in-depth knowledge of the database and data pipeline to secure all points within the data lifecycle. Nine of the 10 top life insurance carriers in the U.S. are currently protected by Paperclip SAFE. With Paperclip SAFE, outpace threats with data that is always encrypted and always ahead of evolving risk. For more information, visit paperclip.com/safe.

    CONTACT
    Megan Brandow, Director of Marketing & Communications
    Paperclip, Inc.
    (585) 727-0983
    mbrandow@paperclip.com

    The MIL Network –

  • MIL-OSI Security: U.S. Attorney Announces Charges Against Seven Defendants in Armed Transnational Cocaine and Methamphetamine Distribution Conspiracies

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

    Four Defendants Arrested in Three U.S. States, Along With the Seizure of More Than 350 Kilograms of Methamphetamine, 100 Kilograms of Cocaine, and Four Firearms

    Matthew Podolsky, the Acting United States Attorney for the Southern District of New York; James E. Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Francis J. Russo, the Director of Field Operations for the New York Field Office of U.S. Customs and Border Protection, announced today the unsealing of an Indictment charging seven defendants with narcotics trafficking and firearms offenses. The case is assigned to U.S. District Judge Edgardo Ramos.

    Since at least in or about October 2023, SHEHNAZ SINGH, a/k/a “SHAWN,” along with his co-conspirators, AMRITPAL SINGH, a/k/a “AMRIT,” a/k/a “Bal,” AMRITPAL SINGH, a/k/a “CHEEMA,” TAKDIR SINGH, a/k/a “ROMY,” SARBSIT SINGH, a/k/a “SABI,” and GURLAL SINGH (“GURLAL”), operated a transnational conspiracy to import cocaine into the U.S. from Colombia and distribute the drug in cities across the U.S. and into Canada.  Beginning in or about April 2024, a subset of these conspirators—led by ROMY and SABI, and joined by co-conspirators including FERNANDO VALLADARES, a/k/a “FRANCO”—stole a cache of cocaine from their original co-conspirators and agreed to distribute it out of, among other places, hotels in New York City.  Members of the two armed drug trafficking conspiracies hunted each other down, brandished a firearm, and threatened the lives of each other and innocent family members. 

    Four defendants are in custody after arrests made on the morning of February 26, 2025.  Searches of various of the defendants’ residences and vehicles conducted at the time of arrest resulted in the seizure of four firearms, approximately 391 kilograms of methamphetamine, and approximately 109 kilograms of cocaine. CHEEMA was arrested in the Eastern District of California and was presented before U.S. Magistrate Judge Christopher D. Baker and detained; ROMY and SABI were arrested in the Northern District of Ohio and were presented before U.S. Magistrate Judge James E. Grimes Jr. and detained; and FRANCO was arrested in the Eastern District of New York, presented before U.S. Magistrate Judge Henry J. Ricardo, and released on certain conditions.  AMRIT and GURLAL are in custody in Pennsylvania after prior arrests.  SHAWN remains at large. 

    Acting U.S. Attorney Matthew Podolsky said: “For more than a year, Shehnaz Singh and his associates not only imported dangerous drugs to sell across the United States but also armed themselves with deadly weapons and endangered communities here in New York City and around the country.  This week, we and our law enforcement partners halted that dangerous activity and took drugs and guns off the street.  I commend the career prosecutors of the Southern District of New York, and our partners at the Federal Bureau of Investigation and U.S. Customs and Border Protection, for their tireless efforts to disrupt this dangerous distribution network and to keep communities safe for our country and our neighbors, too.  We hope that today’s charges bring accountability to those who push drugs and use violence to protect their criminal organizations.”

    CBP Director of Field Operations Francis J. Russo said: “Every day our CBP officers and law enforcement partners relentlessly pursue the most vicious and brutal criminal drug organizations in the world who do business globally and right here in our local communities and neighborhoods. We will not stop until networks such as this one and their criminal facilitators are off the street and brought to justice. CBP will continue its unwavering commitment to keeping Americans safe from the dangers of drugs and the violence they often bring.”

    According to the allegations contained in the Indictments, other court filings, and statements made during court proceedings:[1]

    Since at least in or about October 2023, a group of conspirators led by SHAWN—a Canada-based drug trafficker who holds himself out as a corrupt police officer—operated a drug trafficking organization that imported cocaine into the U.S., transported it to stash houses and other distribution sites using networks of trucking companies and drivers, and sold it in communities across the U.S. and into Canada (the “Original Cocaine Conspiracy”). AMRIT and CHEEMA, served as, among other things, SHAWN’s enforcers, and helped operated the drug trafficking organization by safekeeping and distributing cocaine while armed with guns.

    Members of the Original Cocaine Conspiracy imported cocaine into the U.S. from Colombia and delivered the drug to coconspirators in the midwestern U.S., including a vacant home used by AMRIT and others in Indiana. From there, the cocaine was distributed across the U.S. and to Canada, including through and to California, Michigan, Indiana, Ohio, Pennsylvania, New Jersey, and New York.  This cross-border trade, from Colombia to the U.S. and Canada, was lucrative. As AMRIT described it: “It costs roughly about two, four, or five thousand dollars per [kilo in Colombia]. When it reaches America, it’s worth twelve to thirteen thousand. When it reaches Canada, it’s thirty thousand.”  In total, this organization was moving more than 600 kilograms of cocaine and methamphetamine a week.

    Beginning in or about April 2024, a subset of the Original Cocaine Conspiracy’s members—ROMY and SABI—stole a large cache of cocaine from their co-conspirators in the Original Cocaine Conspiracy and worked with others, including FRANCO—to distribute the stolen cocaine from, among other places, two hotels in New York City (the “Stolen Cocaine Conspiracy”).  After a co-conspirator (“CC-1”) crashed a truck carrying approximately 10 kilograms of the group’s cocaine and abandoned his cargo, members of the Original Cocaine Conspiracy announced plans to travel to New York with weapons to reclaim their stolen drugs and serve vengeance on members of the Stolen Cocaine Conspiracy and their families.  As AMRIT put it: “We need our stuff.  We aren’t letting anyone go.  We are going to kill them all.”  The day before arriving in New York City, AMRIT and CHEEMA, took photos of themselves displaying weapons over a large cache of stacked cocaine.

    Once in New York, AMRIT and CHEEMA threatened members of the Stolen Cocaine Conspiracy and their family members with violence.  In just one such incident, at a meeting in front of a home on suburban Long Island, AMRIT thrust a handgun into CC-1’s teenage brother’s neck while demanding to know the location of the stolen cocaine.

    While executing arrests of certain of the defendants and searches of various residences and vehicles, law enforcement agents seized four firearms, approximately 391 kilograms of methamphetamine, and approximately 109 kilograms of cocaine.  CHEEMA was stopped while fleeing a residence in Bakersfield, California, and arrested in possession of a loaded handgun.  Three additional firearms were seized from residences or vehicles belonging to or controlled by ROMY and SABI in Cleveland, Ohio, where agents also seized approximately 391 kilograms of methamphetamine and approximately 109 kilograms of cocaine.  The seized firearms and narcotics are shown below.

    Cocaine intercepted en route to ROMY and SABI

    Methamphetamine seized from SABI’s residence

    *                *                *

    A chart containing the charges and minimum and maximum penalties each defendant faces is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.

    Mr. Podolsky praised the outstanding investigative work of the FBI and CBP. Mr. Podolsky further thanked the New York City Police Department, the U.S. Attorney’s Office for the Northern District of Ohio, the Cleveland Organized Crime Drug Enforcement Task Forces (“OCDETF”) Strike Force, the Cleveland Division of Police, the U.S. Attorney’s Office for the Eastern District of California, the FBI’s Sacramento Field Office and Bakersfield Resident Agency, the FBI’s Cartel, Gang, Narcotics, & Laundering Task Force, the Cleveland Division of Police Coast Guard Investigative Service, and the Bakersfield (Calif.) Police Department, for their assistance and cooperation in the investigation.

    This prosecution is part of an OCDETF operation.  OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    This case is being handled by the Office’s Narcotics Unit.  Assistant U.S. Attorneys William C. Kinder and Justin Horton are in charge of the prosecution.

    The charges in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

    Defendant

    Age

    Charges

    Minimum and Maximum Sentences
    SHEHNAZ SINGH, a/k/a “Shawn”

    34

    		 Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crime Minimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)
    AMRITPAL SINGH, a/k/a “Amrit,” a/k/a “Bal”

    30

    		 Cocaine distribution conspiracy; brandishing a firearm during and in relation to a drug trafficking crime Minimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of seven consecutive years in prison and a maximum of life (firearms offense)
    AMRITPAL SINGH, a/k/a “Cheema”

    26

    		 Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crime Minimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)
    TAKDIR SINGH, a/k/a “Romy”

    33

    		 Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crime Minimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)
    SARBSIT SINGH, a/k/a “Sabi”

    32

    		 Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crime Minimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)
    GURLAL SINGH

    29

    		 Cocaine distribution conspiracy; using, carrying, and possessing firearms during and in relation to, or in furtherance of, a drug trafficking crime Minimum of 10 years and a maximum of life in prison (cocaine distribution conspiracy); minimum of five consecutive years in prison and a maximum of life (firearms offense)
    FERNANDO VALLADARES, a/k/a “Franco”

    36

    		 Cocaine distribution conspiracy Minimum of 10 years and a maximum of life in prison

    [1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.

    MIL Security OSI –

  • MIL-OSI Security: Columbus Man Sentenced for COVID Fraud

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

    OXFORD, MS – A Columbus man was sentenced today to 18 months in prison for fraudulently obtaining a $200,000 Economic Injury Disaster Loan related to the COVID-19 pandemic.

    According to court documents and evidence presented at trial, Ramirez Ivy, of Columbus, Mississippi conspired with Lakeith Faulkner, Norman Beckwood and others to each receive $200,000 from the Small Business Administration (SBA) based on a fraudulent loan application.  The loan applications contained fictitious documents and claimed business revenue that did not exist.

    In September 2024, after a three-day trial before U.S. District Judge Michael P. Mills, the jury found Ivy and Smith guilty on all counts.

    Judge Mills sentenced Ivy to 18 months to be followed by five years supervised release and ordered him to pay $200,000 in restitution to the SBA.

    On January 23, 2025, Felicia L. Smith, Ivy’s co-defendant at the September trial, was sentenced serve six months imprisonment followed by five years of supervised release. Smith was ordered to pay $200,000 in restitution to the SBA.

    On December 7, 2022, Faulkner, a former SBA employee, entered a plea of guilty to one count of conspiracy to commit wire fraud. On May 24, 2023, U.S. District Judge Debra M. Brown sentenced Faulkner to serve sixty-two (62) months imprisonment followed by five years of supervised release. Faulkner was also ordered to pay $10,620,452.26 in restitution to the SBA.

    On January 17, 2023, Beckwood entered a plea of guilty to one count of conspiracy to commit wire fraud. U.S. District Judge Sharion Aycock sentenced Beckwood to serve 62 months imprisonment followed by five years of supervised release. In addition to prison time, Faulkner was ordered to pay $10,620,452.26 in restitution to the SBA. In connection with his guilty plea, Beckwood also forfeited $700,147.74, a 2018 Mercedez Benz C Class and a 2020 Mercedes Benz G63.

    Thirty (30) other individual borrowers have also been charged in connection with the same scheme.

    “Ramirez Ivy was a law enforcement officer when he deceptively obtained funds that were intended to provide emergency financial relief to small businesses during the COVID-19 pandemic, and he absolutely knew better than to engage in this type of fraud,” said U.S. Attorney Clay Joyner.  “Today’s sentence should reinforce the fact that the prosecutorial and law enforcement partnership on display in this case will continue until the stolen money is recovered and the perpetrators have been brought to justice.”

    “Abusing a federal program designed to assist Americans in a time of need has, and will continue to be, aggressively investigated by the Treasury Inspector General for Tax Administration. What makes this crime even more egregious is that Mr. Ivy was a police officer in a position of public trust,” stated Assistant Inspector General Gary Smith for Investigations for the U.S. Treasury Inspector General for Tax Administration. “This sentencing demonstrates our commitment to investigating and bringing to justice anyone who victimizes the American taxpayer. I want to thank TIGTA’s Special Agents, our law enforcement partners and the U.S. Attorney’s Office for their unwavering dedication to this goal.”

    “Today’s sentencing of former police officer, Ramirez Ivy, demonstrates the FBI’s commitment to investigating those who defraud the federal government, no matter their position within the community,” remarked Special Agent in Charge Robert Eikhoff for the FBI Jackson Division. “The FBI, alongside our partners, will continue to investigate and hold individuals accountable, like Mr. Ivy, who commit fraudulent crimes against the U.S. Government.”

    “The abuse of programs designed to assist small businesses is unacceptable. This sentencing underscore the SBA Office of Inspector General’s unwavering commitment to holding fraudsters accountable and ensuring justice is served,” said Sophia Curtis Acting Special Agent in Charge of the SBA OIG’s Central Region.

    This scheme was initially uncovered during a civil investigation, led by the Civil Division of the U.S. Attorney’s Office and Assistant U.S. Attorney J. Harland Webster.

    Assistant U.S. Attorneys Clayton A. Dabbs, Parker S. King and Samuel D. Wright of the Northern District of Mississippi are prosecuting the criminal case.

    The case was investigated by the FBI, the U.S. Small Business Administration Office of Inspector General and the U.S. Treasury Inspector General for Tax Administration.

    MIL Security OSI –

  • MIL-OSI: Coface SA: Disclosure of trading in own shares (excluding the liquidity agreement) made on February 24, 2025 to February 28, 2025

    Source: GlobeNewswire (MIL-OSI)

    COFACE SA: Disclosure of trading in own shares (excluding the liquidity agreement) made on February 24, 2025 to February 28, 2025

    Paris, 4 March 2025 – 17.45

    Pursuant to Regulation (EU) No 596/2014 of 16 April 2014 on market abuse1

    The main features of the 2024-2025 Share Buyback Program have been published on the Company’s website (http://www.coface.com/Investors/Disclosure-requirements, under “Own share transactions”) and are also described in the 2023 Universal Registration Document.

    Trading session
    of (Date)    		 Number
    of shares    		 Weighted
    average price    		 Gross amount MIC Code Purpose
    of buyback
    24/02/2025 10,000 15.8885 € 158,885 € XPAR LTIP
    25/02/2025 10,000 16.0764 € 160,764 € XPAR LTIP
    26/02/2025 10,000 16.0722 € 160,722 € XPAR LTIP
    27/02/2025 10,000 16.2278 € 162,278 € XPAR LTIP
    28/02/2025 10,000 16.3557 € 163,557 € XPAR LTIP
    Total 24/02/2025 – 28/02/2025 50,000 16.1241 € 806,206 €   LTIP

    CONTACTS

    ANALYSTS / INVESTORS
    Thomas JACQUET: +33 1 49 02 12 58 – thomas.jacquet@coface.com
    Rina ANDRIAMIADANTSOA: +33 1 49 02 15 85 – rina.andriamiadantsoa@coface.com

    FINANCIAL CALENDAR 2025
    (subject to change)

    Q1-2025 results: 5 May 2025 (after market close)
    Annual General Shareholders’ Meeting: 14 May 2025
    H1-2025 results: 31 July 2025 (after market close)
    9M-2025 results: 3 November 2025 (after market close)

    FINANCIAL INFORMATION
    This press release, as well as COFACE SA’s integral regulatory information, can be found on the Group’s website: http://www.coface.com/Investors

    For regulated information on Alternative Performance Measures (APM), please refer to our Interim Financial Report for H1-2024 and our 2023 Universal Registration Document (see part 3.7 “Key financial performance indicators”).

      Regulated documents posted by COFACE SA have been secured and authenticated with the blockchain technology by Wiztrust.
    You can check the authenticity on the website www.wiztrust.com.

    COFACE: FOR TRADE
    As a global leading player in trade credit risk management for more than 75 years, Coface helps companies grow and navigate in an uncertain and volatile environment.
    Whatever their size, location or sector, Coface provides 100,000 clients across some 200 markets. with a full range of solutions: Trade Credit Insurance, Business Information, Debt Collection, Single Risk insurance, Surety Bonds, Factoring.
    Every day, Coface leverages its unique expertise and cutting-edge technology to make trade happen, in both domestic and export markets.
    In 2024, Coface employed ~5,236 people and registered a turnover of €1.84 billion.

    www.coface.com

    COFACE SA is listed in Compartment A of Euronext Paris
    ISIN: FR0010667147 / Ticker: COFA

    1 Also in pursuant to Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 (and updates); Article L.225-209 and seq. of the French Commercial Code; Article L.221-3, Article L.241-1 and seq. of the General Regulation of the French Market Authority (AMF); AMF Recommendation DOC-2017-04 Guide for issuers on their own shares transactions and for stabilization measures.

    Attachment

    The MIL Network –

  • MIL-OSI United Nations: 4 March 2025 South Africa: applying the lessons learned from tackling HIV to accelerate action on obesity

    Source: World Health Organisation

    Therncountry has already taken some bold moves to transform the food system, enablernequitable access to healthy food and physical activity and provide healthyrnmeals to children through the National School Nutrition Programme. rnSpecifically, as part of efforts to create healthier food environments, arnsugar-sweetened beverage tax, introduced in 2018, has helped reduce sugaryrndrink purchases, and regulations to reduce salt in processed foods has reducedrnsalt intake. 

    Obesityrnchronic care programs now need to be scaled up across all levels of thernhealth system with a focus on community and primary care and referral and backrnreferral to secondary and tertiary care. “The task is now to replan, reorganizernand reorient health services and train health-care providers to expand accessrnto all those in need and offer services where people are, with an impetus neverrnseen before,” said Professor Francois Venter, Director of Ezintsha atrnthe University of the Witwatersrand. “And there are many lessons from ourrnexperience in implementing large scale HIV programmes that are highly relevant,”rnhe added.   

    Asrnwith the HIV response in the early 2000s, the voices of health advocates andrnresearchers are critical to ensuring a person-centred, rights-based response tornaddressing obesity in South Africa. Robust civil society is a strength of SouthrnAfrican society that can be leveraged to combat obesity. A key player, thernDesmond Tutu Health Foundation (DTHF), expanded the HIV focus of its researchrnand advocacy to cover HIV within the broader health context of NCDs and mentalrnhealth in 2020. “Obesity is the new South African epidemic, with many parallelsrnto HIV. Both require lifelong care and impact every part of society. The samernlevers that drove South Africa’s HIV response – advocacy, community engagement,rncollaboration and long-term commitment – are just as crucial for tacklingrnobesity and sustained action beyond World Obesity Day,” noted DrrnNomathemba Chandiwana, Chief Scientific Officer at DTHF. 

    Onrnthe same line, the Cancer Association of South Africa (CANSA) has been runningrneducational campaigns on healthy living for decades. As well as educating thernpublic and enabling research, CANSA strives to influence policymakers on cancerrncontrol issues and advocates to protect people’s right to health care. 

             © WHO / Barry Christianson

    Torntackle obesity, action is needed across different areas of governmentrnincluding, among others, health, social services, finance, education, trade andrnurban planning.  Government efforts can be amplified by collaboration withrnresearchers who can help with problem solving and filling knowledge gaps withrntargeted research. At the same time, supportive non-governmental organizationsrn(NGOs) and community groups – joining forces with the government and scientistsrn– can call for robust, rights-based public health action.  

    Byrnharnessing the superpower of joint government, civil society and academiarnaction, and building on the hard-won success of HIV programmes, South Africa isrnleading the way and delivering the change that is needed to respond to thernobesity challenge.

    “,”datePublished”:”2025-03-04T14:28:50.0000000+00:00″,”image”:”https://cdn.who.int/media/images/default-source/topics/diseases-and-conditions/obesity/children-playing-in-alzahraa-displacement-camp.jpg?sfvrsn=869a5caa_6″,”publisher”:{“@type”:”Organization”,”name”:”World Health Organization: WHO”,”logo”:{“@type”:”ImageObject”,”url”:”https://www.who.int/Images/SchemaOrg/schemaOrgLogo.jpg”,”width”:250,”height”:60}},”dateModified”:”2025-03-04T14:28:50.0000000+00:00″,”mainEntityOfPage”:”https://www.who.int/news-room/feature-stories/detail/south-africa-applying-the-lessons-learned-from-tackling-hiv-to-accelerate-action-on-obesity”,”@context”:”http://schema.org”,”@type”:”Article”};
    ]]>

    MIL OSI United Nations News –

  • MIL-OSI Security: Key Member of Drug Distribution Ring Linked to Aryan Prison Gangs Sentenced to 14 Years in Prison

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

    Defendant served as transporter, pill maker, and muscle for the leader of drug distribution cell

    Tacoma – A key member of a drug distribution ring selling fentanyl pills, methamphetamine, and heroin throughout the Puget Sound region was sentenced today in U.S. District Court in Tacoma to 14 years in prison for his role in the conspiracy and for possessing firearms in furtherance of drug trafficking, announced Acting U.S. Attorney Teal Luthy Miller. Michael Slocumb, 46, attempted to evade law enforcement and helped move the drug ring activities to Arizona after the Shelton, Washington, stash house he and his partners operated was raided in December 2022. When law enforcement moved in on the multi-faceted drug conspiracy in March 2023, Slocumb was arrested in his new home in Arizona.

    At today’s sentencing hearing Chief U.S. District Judge David G. Estudillo said about fentanyl pills, “People become addicted to these drugs . . . they end up taking a bad dose and that ends their time on this Earth.” Remarking on Slocumb’s guns, Judge Estudillo said, “The firearms involved here are extremely serious and the types of firearms make me wonder what they may have been used for.”

    According to records filed in the case, in the fall of 2022, Slocumb made multiple trips to Arizona to pick up and transport narcotics to the Shelton stash house. Slocumb used the stash house to manufacture fentanyl pills using two different pill presses. When the stash house property was searched on December 9, 2022, law enforcement

     seized more than 640,000 pills containing fentanyl, as well as a kilogram of fentanyl powder and 12 kilograms of methamphetamine, along with more than $81,000 in cash proceeds from drug trafficking. Slocumb was a key partner for the leader of the drug conspiracy.

    The stash house property also contained 23 firearms, including a shotgun kept where the drugs were stored, and the pills manufactured. In his car, Slocumb kept several firearms including a loaded .40 caliber pistol behind the front seat. In a suitcase in the trunk were a 9mm handgun with a high-capacity magazine and an AR-15 type rifle with a folding shoulder stock and a loaded 115-round drum magazine. Also in the suitcase was a 9mm firearm silencer.

    During this conspiracy, law enforcement intercepted Slocumb and the ringleader Bryson Gill discussing kidnapping a rival drug dealer. Slocumb was surveilling the target’s apartment when law enforcement made a show of being in the vicinity to get Slocumb to leave and ward off any violence.

    Following the stash house raid, Slocumb was heard on the wiretap discussing his plan to move drug operations to Arizona. Slocumb and Gill continued their drug trafficking in Arizona until they were arrested in March 2023. When law enforcement searched the Arizona property, they seized approximately 70 firearms and thousands of rounds of ammunition.

    Slocumb pleaded guilty in November 2024 to conspiracy to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime.

    In asking for a 15-year sentence, prosecutors wrote to the court, “Slocumb’s conduct in the drug conspiracy involved massive numbers of firearms, as well as ammunition, firearms accessories, large capacity magazines, and a firearm silencer. It is clear that he played a trusted role in partnership with Gill in not just distributing drugs but acting as an enforcer—he took direction from Gill in picking up guns following a trip to get drugs from the stash house, and on another occasion, he conspired with Gill to kidnap a co-conspirator who was a drug redistributor.”

    Bryson Gill entered a guilty plea February 7, 2025, to conspiracy to distribute controlled substances, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering, and is scheduled for sentencing on May 9, 2025.

    Law enforcement made two dozen arrests on federal charges on March 22, 2023. The coordinated takedown involved ten swat teams and more than 350 law enforcement officers. On that day law enforcement seized 177 firearms, more than ten kilos of methamphetamine, 11 kilos of fentanyl pills and more than a kilo of fentanyl powder, three kilos of heroin, and more than $330,000 in cash from eighteen locations in Washington and Arizona. Earlier in the investigation law enforcement seized 830,000 fentanyl pills, 5.5 pounds of fentanyl powder, 223 pounds of methamphetamine, 3.5 pounds of heroin, 5 pounds of cocaine, $388,000 in cash, and 48 firearms.

    The top-level leader of the drug trafficking ring, Jesse Bailey, is scheduled to be sentenced on May 16, 2025, and his wife and co-conspirator Candace Bailey, is scheduled for sentencing on June 13, 2025.

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

    This investigation was led by the FBI with critical investigative teamwork from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Washington State Department of Corrections and significant local assistance from the Tacoma Police Department, Pierce County Sheriff’s Office, and the Thurston County Narcotics Task Force, led by the Thurston County Sheriff’s Office. Throughout this investigation the following agencies assisted the primary investigators: Washington State Patrol, Customs and Border Protection Air and Marine, Lewis County Sheriff’s Office, Lakewood Police Department, and U.S. Postal Inspection Service (USPIS).

    The case is being prosecuted by Assistant United States Attorneys Zach Dillon, Max Shiner, and Jehiel Baer.

    MIL Security OSI –

  • MIL-OSI Security: Convicted Nurse Practitioner to Forfeit over $40 million from Foreign Accounts for Health Care Fraud, Money Laundering

    Source: Office of United States Attorneys

    Trivikram Reddy, 43, a Waxahachie nurse practitioner previously convicted of wire fraud conspiracy and sentenced to 20 years in 2021, will now forfeit over $40 million from foreign accounts into which he moved the funds, announced Acting U.S. Attorney Chad E. Meacham.  

    Following Mr. Reddy’s conviction, the government filed a civil forfeiture action alleging that Mr. Reddy and others transferred and laundered the fraud proceeds to nearly 200 bank accounts located in India.  Through forensic financial analysis, the government traced the proceeds to these accounts and obtained seizure warrants to forfeit and restrain the funds.  On Monday, March 3, 2025, after Mr. Reddy and two family members stipulated up to $41,237,703.16 of the funds’ return from India, U.S. District Judge Ada Brown issued a judgment ordering the funds to be transferred to U.S. government custody.  

    According to court documents, Mr. Reddy, a licensed nurse practitioner, devised a scheme to defraud Medicare, Blue Cross Blue Shield of Texas, Aetna, UnitedHealthcare, Humana, and Cigna.  Mr. Reddy and co-conspirators created false patient bills using the provider numbers of six doctors as the treating physicians on the claims.  All the claims were false, as none of the six doctors provided billable services to any of Mr. Reddy’s medical clinics.  In response to federal agents’ investigative inquiries, Mr. Reddy and his staff manufactured fake medical records in a failed attempt to justify the false claims.  Mr. Reddy pleaded guilty to conspiracy to commit wire fraud in October 2020.  In May 2021, Judge Brown sentenced Mr. Reddy to 20 years imprisonment and ordered over $50 million in restitution to the victims of his offense.

    The civil forfeiture case is being handled by Assistant U.S. Attorney Dimitri Rocha.  Assistant U.S. Attorney Beverly Chapman is handling the restitution.  The case was investigated by the FBI Dallas Field office and Health and Human Services-Office of Inspector General (HHS-OIG). 
     

    MIL Security OSI –

  • MIL-OSI Video: Inside the FBI: Searching for Danielle Imbo and Richard Petrone

    Source: Federal Bureau of Investigation (FBI) (video statements)

    On this episode of Inside the FBI, we’ll discuss this ongoing case and explain how investigators are working to solve this disappearance, 20 years later. We’ll also get to know who Danielle and Richard were before they vanished and detail how you can help the Bureau figure out what happened to them.
    For a full transcript and additional resources, visit fbi.gov/news/podcasts.

    You can also learn more about Danielle and Rich, as well as view their pictures, at fbi.gov/missing. And if you have any information that could help us solve this case and bring closure to the victims’ families—whether you recall seeing Danielle and Rich at a South Philly bar on February 19, 2005, or spotted the couple or their black 2001 Dodge Dakota truck afterwards—we encourage you to call the FBI Philadelphia Field Office at 215-418-4000.

    The FBI is offering a reward of up to $15,000 for information leading to the arrest and conviction of anyone involved in the disappearance of Danielle Imbo and Richard Petrone.

    —————————————————
    Subscribe to Inside the FBI wherever you get your podcasts:
    Spotify: https://open.spotify.com/show/4H2d3cg…
    Apple Podcasts: https://podcasts.apple.com/us/podcast…
    Google Podcasts: https://podcasts.google.com/feed/aHR0…
    More ways to follow us: https://inside-the-fbi.transistor.fm/…

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    X: https://twitter.com/fbi
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    https://www.youtube.com/watch?v=O8UJhm4Qcyo

    MIL OSI Video –

  • MIL-OSI Security: Beckley Man Pleads Guilty to Federal Drug Crime

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    BECKLEY, W.Va. – Leondus Whittenburg, 42, of Beckley, pleaded guilty today to distribution of 5 grams or more of methamphetamine.

    According to court documents and statements made in court, on December 6, 2023, Whittenburg sold 320 grams of methamphetamine to a confidential informant in the parking lot of a Beckley business near Eisenhower Drive.

    Whittenburg is scheduled to be sentenced on July 3, 2025, and faces a mandatory minimum of five years and up to 40 years in prison, at least four years of supervised release, and a $5 million fine.

    Co-defendant John Gray, 39, of Oak Hill, pleaded guilty on September 24, 2024, to distribution of a quantity of methamphetamine and awaits sentencing.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Central Regional Drug and Violent Crime Task Force.

    United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorneys Andrew D. Isabell and Brian D. Parsons are prosecuting the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-31.

    ###

     

     

     

    MIL Security OSI –

  • MIL-OSI Security: Mexican National Arrested in San Antonio for Illegal Alien in Possession of a Firearm

    Source: Office of United States Attorneys

    SAN ANTONIO – A Mexican national was arrested in San Antonio on criminal charges related to his alleged possession of a firearm as an illegal alien.

    According to court documents, during a Feb. 25 traffic stop, Rene Garibay-Robledo presented FBI agents and Texas Department of Public Safety troopers a Mexico ID and allegedly stated he lacked legal status to be in the United States. Additionally, the criminal complaint alleges Garibay-Robledo stated that he had one firearm—a pistol—at his house. During the execution of federal search warrant at Garibay-Robledo’s home,  three handguns, a semi-automatic CZ Scorpion EVO 3, approximately 450 rounds of mixed caliber ammunition, and 6.8 grams of a substance that tested positive for cocaine were seized.

    A review of Department of Homeland Security records revealed Garibay-Robledo entered the U.S. illegally on or about Jan. 1, 1994 near Laredo. Law enforcement databases also confirm a prior theft conviction from December 2000 in California.

    Garibay-Robledo is charged with one count of illegal alien in possession of a firearm. If convicted, he faces up to 15 years in federal prison and a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting U.S. Attorney Margaret Leachman for the Western District of Texas made the announcement.

    The FBI and Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO) are investigating the case.

    Assistant U.S. Attorney Zachary Parsons is prosecuting the case.

    A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

    ###

    MIL Security OSI –