Category: Intelligence Agencies

  • MIL-OSI Security: Jury Convicts Former KC Police Officer of $200,000 Charity Fraud Scheme

    Source: Office of United States Attorneys

    KANSAS CITY, Mo. – A former Kansas City, Mo., police officer who ran an anti-crime charity has been convicted in federal court of a scheme in which he spent more than $200,000 in donations for his own personal expenses.

    Aaron Wayne McKie, 47, was found guilty on Thursday, Feb. 20, of nine counts of wire fraud and one count of money laundering. McKie worked as a police officer for the Kansas City, Mo., Police Department for 24 years, assigned as a police officer to the Crime Free Multi-Housing section from 2002 through 2023.

    McKie served from 2009 to 2023 as president of Mid-America Crime Free, Inc. (MACF), a non-profit organization that claimed to provide training to persons in the rental housing industry and promote anti-crime programs. He was an officer of the charity for three years prior, from 2006 to 2009.

    Evidence produced during the trial indicated that McKie devised a scheme to defraud MACF and its donors that began in July 2009 and lasted until October 2023. Individuals and businesses contributed $387,620 to MACF, not including in-kind donations. McKie spent at least $200,060 for his own personal purposes.

    The biggest source of MACF funds was an annual golf tournament, “Fairways 4 Fuzz Golf Tournament.” Individuals and businesses donated both money and in-kind donations, such as food and beverages, to MACF via the golf tournament. At least 121 donors have been identified.

    From 2009 to 2023, the flyers soliciting donations and players for the tournament claimed the funds raised would enable MACF to provide free seminars to owners of rental properties and train police officers. In reality, those claims were false. The Kansas City Police Department paid the salaries and expenses of Crime Free Multi-Housing unit officers who may have provided training to landlords; McKie used the majority of MACF funds for personal spending; and the IRS had revoked the organization’s tax-exempt status in 2010.

    Under federal statutes, McKie is subject to a sentence of up to 20 years in federal prison without parole on each of the 10 counts on which he was convicted. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

    Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for nine hours before returning guilty verdicts to U.S. Chief District Judge Beth Phillips, ending a trial that began Monday, Feb. 10.

    This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney and Special Assistant U.S. Attorney Amanda Hanson. It was investigated by the FBI and the Kansas City, Mo., Police Department.

    MIL Security OSI

  • MIL-OSI Security: Springfield, Illinois, Man Sentenced to 180 Months for Drug Trafficking Associated with Street Gang

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

    SPRINGFIELD, Ill. – A Springfield, Illinois, man, Derrick Bailey, 44, was sentenced on January 30, 2025, by Senior U.S. District Judge Sue Myerscough to 180 months in prison, to be followed by 10 years of supervised release, for his role in a wide-spread drug conspiracy involving a Springfield street gang, Boss Playas, lasting from approximately May 2020 through November 2020.

    At the sentencing hearing, Bailey was held accountable for trafficking over 10 kilograms of cocaine as a member of the conspiracy. Also during the hearing, Judge Myerscough noted that the group of conspirators were responsible for distributing large amounts of controlled substances in the Springfield area, which had a negative effect on the community.

    Co-defendants in the case have received the following sentences of imprisonment: Denziel Witherspoon, 240 months; James Cooper, 180 months; Christopher Wallace 120 months; Isadore Montgomery, 120 months; Rashaud Brown, 84 months; Paul Davis, 40 months; and Taylor Cockrell, 36 months. Additional defendants Dorothy Jackson, Shelton Witherspoon, Lavar Maney, Haley Riley, and Haylee Vaughn have pleaded guilty and are awaiting sentencing.

    Bailey was indicted on December 15, 2020, and pleaded guilty on September 18, 2024. He has remained in the custody of the United States Marshal since his arrest on December 1, 2020.  

    The statutory penalties for the most serious charge of conviction include up to life in prison, up to a $20,000,000 fine, and up to a life term of supervised release.

    This case was investigated by the Drug Enforcement Administration; Federal Bureau of Investigation, Springfield Field Office; Illinois State Police; and Springfield Police Department. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.

    The case against Bailey was part of an investigation of the Springfield-based Boss Playas street gang and was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF

    MIL Security OSI

  • MIL-OSI Security: Career Offender Sentenced to 25 Years in Prison for Fentanyl Trafficking

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

    RICHMOND, Va. – A North Carolina man was sentenced today to 25 years in prison for possession with intent to distribute parafluorofentanyl and fentanyl.

    According to court documents, on the evening of September 17, 2023, Jaron James Starkey, 35, of Charlotte, and formerly of New Castle County, Delaware, was driving erratically southbound on I-95 in Caroline County. Other drivers traveling on I-95 called 911 to report the erratic driving. Virginia State Police (VSP) responded to the area and upon arrival observed that Starkey had crashed his Jeep. Starkey, who was alone in the car, was speaking incoherently and his eyes were bloodshot. He was transported to the Mary Washington Hospital emergency room.

    Upon approaching the vehicle, the responding VSP officers also observed thousands of glassine baggies, each of which appeared to contain a white powder, scattered throughout Starkey’s car. A total of 4,497 blue glassine baggies collected contained Parafluorofentanyl, with a net weight of over 122 grams. Also in the vehicle were 120 white glassine baggies containing fentanyl.

    Starkey has 21 prior convictions as an adult, including two previous drug trafficking convictions, convictions for possessing firearms as a convicted felon, and conspiracy to commit burglary, among others.   

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Lt. Colonel Matt Hanley, Virginia State Police Interim Superintendent; and Brian Layton, Chief of Fredericksburg Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. The Fredericksburg Regional Narcotics Task Force assisted in the investigation of this case.

    Assistant U.S. Attorney Angela Mastandrea prosecuted the case.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-58.

    MIL Security OSI

  • MIL-OSI Security: Maryland Man Convicted of Supplying Cocaine and Fentanyl to Fredericksburg Drug Trafficker

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

    RICHMOND, Va. – A federal jury convicted a Maryland man today of conspiracy to distribute and possession with intent to distribute over 500 grams of cocaine hydrochloride, over 40 grams of fentanyl, and a detectable amount of p-fluorofentanyl.

    According to court records and evidence presented at trial, from at least July 1, 2022, through June 8, 2023, Sean Shaka Myles Sr., 50, of Baltimore, supplied Omar Jermel Dixon, 48, of Fredericksburg, with cocaine, fentanyl and p-fluorofentanyl, which Dixon then supplied to a number of individuals for redistribution in and around Fredericksburg.

    Myles faces a mandatory minimum sentence of 10 years and up to life in prison when sentenced on June 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Ibrar A. Mian, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Jason S. Miyares, Attorney General of Virginia, made the announcement after U.S. District Judge David J. Novak accepted the verdict. The Fredericksburg Regional Narcotics Task Force assisted in the investigation of this case.

    Assistant U.S. Attorney Olivia L. Norman and Special Assistant U.S. Attorney Eric Gilliland, an Assistant Attorney General with the Virginia Attorney General’s Office are prosecuting the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-95.

    MIL Security OSI

  • MIL-OSI Security: Former Taney County Official Pleads Guilty to Stealing $260,000

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

    SPRINGFIELD, Mo. – A former official with the Taney County Health Department pleaded guilty in federal court today to a scheme to embezzle approximately $260,000 from the agency.

    Hugo Ricardo Huacuz, 51, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a five-count federal information. Huacuz pleaded guilty to one count of wire fraud, two counts of stealing federal funds, one count of money laundering and one count of aggravated identity theft.

    Huacuz was the chief operating officer and the chief financial officer of the Taney County Health Department until he resigned on Nov. 14, 2023. Huacuz had been employed by the health department since 2011.

    By pleading guilty today, Huacuz admitted that he stole from the Taney County Health Department in a scheme that lasted from March 23, 2022, to Nov. 14, 2023. Huacuz caused the health department to write checks to Argon Investments, LLC, a company organized by Huacuz and his wife. Huacuz forged the signatures of health department members, using their identities without their permission. Huacuz caused the health department to issue 15 checks totaling approximately $259,000, which were deposited into the bank account of Argon Investments.

    Huacuz used the stolen funds for personal expenses charged to his personal credit card, including automobile insurance, maintenance, repair and parts; restaurants; home construction items; gasoline; airline tickets and travel, including to Chicago, Illinois, New York State, San Diego, California, College Station, Texas, Nashville, Tennessee, Las Vegas, Nevada, and Portland, Oregon; utilities; dry cleaning; clothing; dental and medical care; and payments to the Missouri Secretary of State’s office for Argon’s LLC fees.

    Health board members were not aware of the existence of Argon Investments or that any checks had been issued to Argon Investments. In order to conceal his scheme from the board, Huacuz caused these checks to be coded as payments to Sanofi Pasteur, Inc., a multinational pharmaceutical company. Huacuz falsely reported to the health department’s board that some of the checks written to Argon Investments were for items purchased from Sanofi, and created false invoices from Sanofi purportedly for the purchase of pharmaceutical and medical items, including COVID-19 testing kits.

    In November 2023, the director of the Taney County Health Department received information concerning Huacuz’s job performance. The information stated that Huacuz was frequently absent from his job and that he had other businesses he was operating independent from his job at the health department. After reviewing the information, the director met with Huacuz on Nov. 13, 2023, and placed him on administrative leave. Huacuz went to the bank immediately afterward and withdrew more than $24,000 from the Argon bank account, leaving a balance of $100 in the account.

    Under the terms of today’s plea agreement, Huacuz agrees that he embezzled at least $258,976 and, at the very least, this amount is subject to forfeiture and restitution. The government will recommend a sentence of no more than four years and six months in federal prison without parole while Huacuz will seek a sentence of three years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

    This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the Department of Health and Human Services and the FBI.

    MIL Security OSI

  • MIL-OSI Security: Indian National Sentenced to Eight Years in Federal Prison for Defrauding Elderly Victims of Nearly $6 Million

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

    AUSTIN, Texas – An Indian national was sentenced in a federal court in Austin today to 97 months in prison for conspiracy to commit money laundering.

    According to court documents, Moinuddin Mohammed, 34, engaged in a conspiracy to launder proceeds of a scheme to defraud elderly victims out of hundreds of thousands of dollars in cash and gold. Mohammed was a courier who picked up the cash and gold from vulnerable elderly people. The international conspiracy originated from India and involved the impersonation of government officials in order to convince the victims to turn over millions of dollars from their retirement and savings accounts.

    Multiple victims were contacted by a person claiming to be the United States Attorney for the Southern District of Texas, who told the victims that they were under investigation or at risk of financial loss. The victims were told that they would need to deposit cash, gold or other items of financial value in order to resolve the investigation or prevent the loss. One victim was defrauded of more than $300,000, another was defrauded of approximately $151,500, and a third victim lost a total of approximately $470,000 to the fraud scheme. Nationwide, investigators identified 21 victims who lost a total of nearly $6 million to the scheme.

    In addition to his imprisonment, Mohamed will pay full restitution in the approximate amount of $960,000, forfeits $20,000 in cash that was seized by investigators, and forfeits a money judgement in the amount of $16,000.

    “The significant sentence of this courier for an international fraud scheme sends a strong message that we will investigate and prosecute those at every level of the organization,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “Mohammed illegally used the likeness of government officials to prey on and victimize the vulnerable, elderly people in our community, and fraudsters like him will be held accountable.”

    “Mohammed targeted some of our most vulnerable elderly citizens in an effort to line his own pockets and the pockets of foreign fraudsters,” said Special Agent in Charge Aaron Tapp for the FBI’s San Antonio Field Office.  “The FBI continues to see an uptick in financial scams targeting our elderly population and we work every day to bring awareness to our victims and justice to those who perpetuate these devastating schemes. We want to thank our U.S. Attorney’s Office for aggressively pursuing justice for those who fell victim to this scammer. Cases like this are a priority for the FBI and we encourage anyone who has been a victim of a financial scam to contact your local FBI office or go to www.IC3.gov. We also encourage the public to review the FBI’s last report on Elder Fraud to educate yourselves and protect those you love.”

    The FBI investigated the case.

    Assistant U.S. Attorney Keith Henneke prosecuted the case.

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    MIL Security OSI

  • MIL-OSI Security: Arizona Man Charged With Conspiracy To Commit Bank Fraud And Theft Of $1 Million In Federal Grants For HIV Programs

    Source: Office of United States Attorneys

    NEWARK, N.J. – Yesterday, a complaint was unsealed charging an Arizona man for his role in a conspiracy to misappropriate government funds used to support low-income individuals with HIV, Acting U.S. Attorney Vikas Khanna announced.

    Brent Lee, 51, of Phoenix, Arizona, was charged by complaint with one count of bank fraud conspiracy and one count of theft of government funds. Lee appeared before U.S. Magistrate Judge Deborah M. Fine in the District of Arizona.

    According to documents filed in this case and statements made in court:

    In January 2023, a municipality in Hudson County, New Jersey, issued five checks totaling approximately $1M to a nonprofit charitable organization.  The funds for four of the checks originated from a federal grant program that funds a comprehensive system of primary medical care, medications, and essential support for low-income people with HIV.  Yet, as alleged in today’s complaint, the nonprofit organization never received the checks.

    Instead, as alleged, in February and March 2023, Lee conspired with others to use a fraudulent business entity to misappropriate nearly all of the funds derived from the checks.  In February 2023, Lee filed articles of incorporation in Wyoming for a business entity with a name nearly identical to the nonprofit’s, and opened a bank account for that entity.  From February to March 2023, the checks were deposited into that account, and Lee paid himself, a family member, and various other individuals nearly all the proceeds via cash withdrawals, cashier’s checks, and wire transfers.  As a result, the bank recorded a loss of approximately $1M.

    The charge of bank fraud conspiracy carries a maximum penalty of 30 years in prison and a maximum fine of $1,000,000, or twice the gross gain or loss from the offense, whichever is greatest.  The charge of theft of government funds carries a maximum penalty of 10 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense.

    Acting U.S. Attorney Khanna credited special agents and members of the FBI’s Public Corruption and Civil Rights Unit in Newark, under the direction of Acting Special Agent in Charge Terence G. Reilly, and the New Jersey Field Office of the U.S. Department of Health and Human Services’ Office of the Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, with the investigation leading to the charges and arrest.

    The government is represented by Assistant U.S. Attorney Michael A. Hardin of the U.S. Attorney’s Opioid Abuse Prevention and Enforcement Unit in Newark.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

                                                               ###

    Defense Counsel: Jazmin Alagha, Esq.

    MIL Security OSI

  • MIL-OSI Security: Hilton Head Lawyer Sentenced for Knowingly Transferring $3M to Prevent the Lawful Seizure of the Funds

    Source: Office of United States Attorneys

    CHARLESTON, S.C. — Peter J. Strauss, 46, of Hilton Head, South Carolina, has been sentenced to nine months in federal prison for knowingly transferring, and aiding and abetting the transfer of, $3 million to prevent the lawful seizure of the funds.

    Evidence obtained in the investigation revealed that Strauss directed and aided and abetted the transfer of $3 million for Jeff and Paulette Carpoff following the execution of federal search and seizure warrants in California. Strauss directed the transfer of $3 million from an account in the Bahamas to his trust account, thereafter, combining the funds for his personal use.

    Jeff and Paulette Carpoff owned and operated DC Solar Solutions, Inc. and DC Solar Distribution, Inc. (DC Solar), California corporations that designed, manufactured, and leased renewable energy products, specializing predominantly in the production of mobile solar generators.

    On Dec. 18, 2018, the FBI and other federal law enforcement agencies executed numerous search warrants on the businesses associated with DC Solar, as well as the personal residences of Jeff and Paulette Carpoff. Several seizure warrants were also executed on bank accounts and assets associated with DC Solar and its principals. The search warrants were conducted in conjunction with a large-scale investigation regarding an investment fraud and money laundering scheme being operated by the principals of DC Solar.

    Following the execution of search and seizure warrants related to an investigation into the Carpoffs’ company, Strauss received $11 million from the Carpoffs. On Dec. 19, 2018, the first $5 million was transferred into Strauss’ trust account and thereafter distributed to various criminal defense attorneys and bankruptcy counsel and to Carpoffs’ captive insurance funds, managed by Strauss’ captive insurance management company. Thereafter, on Dec. 28, 2018, Strauss received an additional $3 million, largely used to pay for the Carpoffs’ captive insurance fund premiums. Finally, on Jan. 15, 2019, the Carpoffs wired Strauss $3 million into Strauss’ trust account. The combined funds in Strauss’ trust account were completely spent over the next few months.

    Jeff Carpoff pleaded guilty in California to money laundering and wire fraud in January 2020 and was sentenced to 30 years in prison. In November 2021, Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. Paulette was sentenced to 11 years and three months.

    Strauss pleaded guilty in November 2023 to removal of property to prevent seizure, admitting that by the time of the $3 million transfer in January 2019, he knowingly transferred and aided and abetted the transfer of funds from Carpoff to prevent and impair the government’s lawful authority to take the property into its custody and control.

    United States District Richard M. Gergel sentenced Strauss to nine months imprisonment, to be followed by a two-year term of court-ordered supervision.  There is no parole in the federal system. Strauss was ordered to pay $2.7 million in restitution, which Strauss previously paid in compliance with the terms of his plea agreement.

    This case was investigated by the FBI Columbia Field Office. Assistant U.S. Attorney Emily Limehouse prosecuted the case.

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    MIL Security OSI

  • MIL-OSI Security: “La Empresa” Member Sentenced in El Paso to Nearly 20 Years in Federal Prison

    Source: Office of United States Attorneys

    EL PASO, Texas – An El Paso transnational criminal organization (TCO) member was sentenced in federal court Thursday to 235 months in prison for his role in a hostage taking conspiracy.

    According to court documents, a man was forcefully kidnapped at gunpoint from his motel room in Juarez, Mexico, on Aug. 24, 2023, and was held hostage until Sept. 5, 2023. During that time, the victim’s family received threatening phone calls from multiple unknown subjects demanding payment. Ultimately, the family paid approximated $9,000 to the TCO for safe travel and release of the victim.

    Luis Edward Castro, 28, worked for the TCO, “La Empresa.” Armed with a handgun, he recorded and sent proof-of-life videos to the victim’s family. In the videos, the victim appeared visibly scared and stated he was in El Paso. An investigation led law enforcement to Castro’s address, where they searched the residence and found six undocumented noncitizens and multiple firearms.

    Castro was arrested Sept. 5, 2023 and charged with six counts pertaining to harboring and transporting undocumented noncitizens for financial gain, hostage taking, and the possession of a firearm with an obliterated serial number. He pleaded guilty to the hostage taking charge on Sept. 26, 2024.

    “This case highlights some of the many dangers posed by TCOs on both sides of our southern border, and Castro’s sentencing of two decades in federal prison is a significant penalty,” said Acting U.S. Attorney Margaret Leachman for the Western District of Texas. “I am thankful for our partners at the FBI and U.S. Border Patrol, whose investigative skill and expertise led to the recovery of these kidnapping victims and the outcome of this case.”

    The FBI and USBP investigated the case.

    Assistant U.S. Attorneys Mathew Engelbaum and Kyle Myers prosecuted the case.

    ###

    MIL Security OSI

  • MIL-OSI: STEALTHGAS INC. Reports Fourth Quarter and Twelve Months 2024 Financial and Operating Results

    Source: GlobeNewswire (MIL-OSI)

    ATHENS, Greece, Feb. 21, 2025 (GLOBE NEWSWIRE) — STEALTHGAS INC. (NASDAQ: GASS), a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry, announced today its unaudited financial and operating results for the fourth quarter and twelve months ended December 31, 2024.

    OPERATIONAL AND FINANCIAL HIGHLIGHTS

    • All-time record Net Income of $69.9 million for the twelve month period of 2024, a 34.7% increase compared to the same period last year. Strong profitability continued for the fourth quarter, with Net income of $14.2 million corresponding to a basic EPS of $0.38.
    • Revenues increased by 27.3% compared to the same period of last year to $43.5 million for the fourth quarter of 2024.
    • Further increased period coverage. About 70% of fleet days for 2025 are secured on period charters, with total fleet employment days for all subsequent periods generating over $200 million (excl. JV vessels) in contracted revenues.
    • Continued reducing leverage, making $108.2 million in debt repayments during the twelve month period of 2024 and $34.4 million in the current quarter of 2025. Currently, 26 out of 28 vessels in the fully owned fleet are unencumbered.
    • Maintaining ample cash and cash equivalents (incl. restricted cash) of $84.5 million as of December 31, 2024 enabling the Company to further reduce debt.

    Fourth Quarter 2024 Results1:

    • Revenues for the three months ended December 31, 2024 amounted to $43.5 million compared to revenues of $34.1 million for the three months ended December 31, 2023, based on an average of 27.6 vessels and 27.0 vessels owned by the Company, respectively, as the vessels remaining in the fleet earned higher revenues due to better market conditions.
    • Voyage expenses and vessels’ operating expenses for the three months ended December 31, 2024 were $3.2 million and $13.6 million, respectively, compared to $3.3 million and $12.9 million, respectively, for the three months ended December 31, 2023. The $0.7 million increase in vessels’ operating expenses was mainly due to increase in crew costs and maintenance expenses, while the voyage expenses remained stable between 2024 and 2023.
    • Drydocking costs for the three months ended December 31, 2024 and 2023 were $1.9 million and $0.03 million, respectively. Drydocking expenses during the fourth quarter of 2024 mainly relate to the completed drydocking of three vessels, compared to no drydocking of vessels in the same period of last year.
    • General and administrative expenses for the three months ended December 31, 2024 and 2023 were $3.0 million and $1.7 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.
    • Depreciation for the three months ended December 31, 2024 and 2023 was $6.6 million and $5.6 million, respectively, a $1.0 million increase is mainly related to the increase in average number of vessels owned by the Company and to the partial replacement of some of the older vessels with newer and larger ones which have a higher cost.
    • Interest and finance costs for the three months ended December 31, 2024 and 2023, were $1.4 million and $2.3 million, respectively. The $0.9 million decrease from the same period of last year is primarily due to continued debt prepayments.
    • Interest income for the three months ended December 31, 2024 and 2023, were $1.1 million and $1.0 million, respectively.
    • Equity earnings in joint ventures for the three months ended December 31, 2024 and 2023 was a gain of $0.5 million and $0.9 million, respectively. The $0.4 million decrease was primarily due to decrease in number of vessels in joint ventures.
    • As a result of the above, for the three months ended December 31, 2024, the Company reported net income of $14.2 million, compared to net income of $8.9 million for the three months ended December 31, 2023. The weighted average number of shares outstanding, basic, for the three months ended December 31, 2024 and 2023 was 35.3 million and 35.3 million, respectively.
    • Earnings per share, basic, for the three months ended December 31, 2024 amounted to $0.38 compared to earnings per share, basic, of $0.25 for the same period of last year.
    • Adjusted net income was $16.4 million corresponding to an Adjusted EPS, basic, of $0.44 for the three months ended December 31, 2024 compared to Adjusted net income of $10.3 million corresponding to an Adjusted EPS, basic, of $0.29 for the same period of last year.
    • EBITDA for the three months ended December 31, 2024 amounted to $21.2 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
    • An average of 27.6 vessels were owned by the Company during the three months ended December 31, 2024 compared to 27.0 vessels for the same period of 2023.

    Twelve months 2024 Results:

    • Revenues for the twelve months ended December 31, 2024, amounted to $167.3 million, an increase of $23.8 million, or 16.6%, compared to revenues of $143.5 million for the twelve months ended December 31, 2023, as the vessels remaining in the fleet earned higher revenues due to better market conditions.
    • Voyage expenses and vessels’ operating expenses for the twelve months ended December 31, 2024 were $11.7 million and $49.8 million, respectively, compared to $13.2 million and $53.1 million for the twelve months ended December 31, 2023. The $1.5 million decrease in voyage expenses was mainly due to the decrease in spot days, while the $3.3 million decrease in vessels’ operating expenses was mainly due to the decrease in the average number of owned vessels in our fleet.
    • Drydocking costs for the twelve months ended December 31, 2024 and 2023 were $5.3 million and $2.6 million, respectively. The costs for the twelve months ended December 31, 2024 mainly related to the completed drydocking of seven vessels, while the costs for the same period of last year mainly related to the completed drydocking of three of the larger handysize vessels.
    • General and administrative expenses for the twelve months ended December 31, 2024 and 2023 were $10.3 million and $5.3 million, respectively. The change is mainly attributed to the increase in stock-based compensation expense.
    • Depreciation for the twelve months ended December 31, 2024, was $26.1 million, a $2.4 million increase from $23.7 million for the same period of last year, as the Company partly replaced some of the older vessels with newer and larger vessels which have a higher cost.
    • Impairment loss for the twelve months ended December 31, 2024 and 2023 was nil and $2.8 million, respectively. The impairment loss for the year ended December 31, 2023, related to two vessels for which the Company had entered into separate agreements to sell to third parties.
    • Gain on sale of vessels for the twelve months ended December 31, 2024 was $0.05 million compared to $7.6 million for the same period last year. The decrease is attributed to the sale of four of the Company’s vessels during the twelve months ended December 31, 2023 compared to the sale of two vessels during the twelve months ended December 31, 2024, which had been classified as held for sale as of December 31, 2023.
    • Interest and finance costs for the twelve months ended December 31, 2024 and 2023 were $9.1 million and $10.0 million, respectively. The $0.9 million decrease from last year is primarily due to continued debt prepayments.
    • Interest income for the twelve months ended December 31, 2024 and 2023 was $3.4 million and $3.7 million, respectively. The $0.3 million decrease is mainly attributed to decrease in interest rates and over the corresponding period.
    • Equity earnings in joint ventures for the twelve months ended December 31, 2024 and 2023 was a gain of $15.6 million and a gain of $12.3 million, respectively. The $3.3 million increase from the same period of last year is mainly due to a profitable sale of one of the Medium Gas carriers owned by one of our joint ventures.
    • As a result of the above, the Company reported a net income for the twelve months ended December 31, 2024 of $69.9 million, compared to a net income of $51.9 million for the twelve months ended December 31, 2023. The weighted average number of shares outstanding, basic, for the twelve months ended December 31, 2024 and 2023 was 35.2 million and 37.2 million, respectively.
    • Earnings per share, basic, for the twelve months ended December 31, 2024 amounted to $1.91 compared to earnings per share, basic, of $1.38 for the same period of last year.
    • Adjusted net income was $77.3 million, corresponding to an Adjusted EPS, basic, of $2.11 per share, for the twelve months ended December 31, 2024 compared to adjusted net income of $50.5 million, or $1.34 per share, for the same period of last year.
    • EBITDA for the twelve months ended December 31, 2024 amounted to $101.6 million. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.
    • An average of 27.2 vessels were owned by the Company during the twelve months ended December 31, 2024, compared to 29.3 vessels for the same period of 2023.

      As of December 31, 2024, cash and cash equivalents (including restricted cash) amounted to $84.5 million and total debt amounted to $84.9 million.

      1  EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release.

    Fleet Update Since Previous Announcement

    The Company announced the conclusion of the following chartering arrangements (of three or more months duration):  

    • A twelve months time charter for its 2024 built LPG carrier Eco Wizard, until Dec 2025.
    • A twelve months time charter for its 2020 built LPG carrier Eco Alice, until Feb 2026.
    • A twelve months time charter for the JV-owned 2007 built LPG carrier Gas Haralambos, until Dec 2025.
    • A three months time charter for the 2012 built LPG carrier Gas Husky, until April 2025.

    As of February 2025, the Company has total contracted revenues of approximately $200 million.

    As of February 2025, the Company has circa 70% of fleet days secured under period contracts and contracted revenues of approximately $107 million for the remainder of the year.

    On January 21, 2025, the previously announced sale of the Gas Shuriken was concluded and the vessel was delivered to its new owners.

    Share Repurchase Program Increase

    Today the Board of Directors authorized a $5 million increase to the existing $25 million common stock repurchase program for a total aggregate amount of $30 million. Shares of common stock may be purchased, from time to time, in open market or privately negotiated transactions, at times and prices that are considered to be appropriate by the Company, and the program may be suspended or discontinued at any time. As of the date hereof, the Company has repurchased an aggregate of approximately $19.4 million.

    CEO Harry Vafias Commented

    It is with great pride that we announce today for the third consecutive year record annual profits. After a successful fourth quarter we concluded 2024 reporting net income of $70 million for the year, a 35% increase, far outpacing the underlying market improvement for our vessels. We are delivering on our strategic priorities, modernizing the fleet, securing revenues and de-risking the business, aiming to bring strong value to StealthGas shareholders. We can now say we are net debt free, after having further reduced our debt in the current quarter. We are close to completing our deleverage that will bring a long term advantage to the fleet and the Company is in a solid footing. As successful as we have been we are established in the shipping markets long enough not to forget that we operate in a volatile sector where fortunes can be made and lost quite rapidly. We are optimistic for the future albeit evermore cautiously not least because the current global geopolitics that can have a strong influence on shipping markets are for the time being quite opaque with too many developing situations. Finally, in order to give further value back to our shareholders, we are renewing our share repurchases and increasing up to $10.5 million the amount available to us for this task.

     Conference Call details:

    On February 21, 2025 at 10:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

    Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

    https://register.vevent.com/register/BIa607c71e1abf4ac08816dfc43bd8d733

    Slides and audio webcast:
    There will also be a live and then archived webcast of the conference call, through the STEALTHGAS INC. website (www.stealthgas.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

    About STEALTHGAS INC.

    StealthGas Inc. is a ship-owning company serving the liquefied petroleum gas (LPG) sector of the international shipping industry. StealthGas Inc. has a fleet of 31 LPG carriers, including three Joint Venture vessels in the water. These LPG vessels have a total capacity of 349,170 cubic meters (cbm). StealthGas Inc.’s shares are listed on the Nasdaq Global Select Market and trade under the symbol “GASS.”

    Visit our website at www.stealthgas.com

    Forward-Looking Statements

    Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although STEALTHGAS INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, STEALTHGAS INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, shipyard performance, changes in STEALTHGAS INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflict in Israel and Gaza, potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or  accidents and political events or acts by terrorists.

    Risks and uncertainties are further described in reports filed by STEALTHGAS INC. with the U.S. Securities and Exchange Commission.

    Fleet List        
    For information on our fleet and further information:
    Visit our website at www.stealthgas.com

    Fleet Data:
    The following key indicators highlight the Company’s operating performance during the periods ended December 31, 2023 and 2024.

    FLEET DATA Q4 2023   Q4 2024   12M 2023   12M 2024  
    Average number of vessels (1) 27.0   27.6   29.3   27.2  
    Period end number of owned vessels in fleet 27   28   27   28  
    Total calendar days for fleet (2) 2,484   2,542   10,698   9,944  
    Total voyage days for fleet (3) 2,441   2,446   10,566   9,677  
    Fleet utilization (4) 98.3 % 96.2 % 98.8 % 97.3 %
    Total charter days for fleet (5) 2,207   2,265   9,544   8,930  
    Total spot market days for fleet (6) 234   181   1,022   747  
    Fleet operational utilization (7) 96.8 % 95.0 % 96.6 % 95.4 %
                     

    1) Average number of vessels is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.
    2) Total calendar days for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.
    3) Total voyage days for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.
    4) Fleet utilization is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.
    5) Total charter days for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.
    6) Total spot market charter days for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.
    7) Fleet operational utilization is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

    Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS:

    Adjusted net income represents net income before loss/gain on derivatives excluding swap interest paid/received, impairment loss, net gain/loss on sale of vessels and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net gain/loss on sale of vessels, share based compensation and loss/gain on derivatives.

    Adjusted EPS represents Adjusted net income divided by the weighted average number of shares.

    EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

    EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

    (Expressed in United States Dollars,
    except number of shares)
    Fourth Quarter Ended
    December 31st,
    Twelve months Periods
    Ended December 31st,
      2023 2024 2023 2024
    Net Income – Adjusted Net Income        
    Net income 8,889,046   14,198,527   51,936,829   69,862,177  
    Plus/(Less) loss/(gain) on derivatives 255,736     (237,618 ) (99,286 )
    (Less)/Plus swap interest (paid)/received 216,432     1,027,127   208,127  
    (Less)/Plus (gain)/loss on sale of vessels, net     (7,645,781 ) (46,384 )
    Plus impairment loss     2,816,873    
    Plus share based compensation 940,216   2,206,295   2,589,405   7,326,807  
    Adjusted Net Income 10,301,430   16,404,822   50,486,835   77,251,441  
             
    Net income – EBITDA        
    Net income 8,889,046   14,198,527   51,936,829   69,862,177  
    Plus interest and finance costs 2,344,430   1,425,886   9,956,712   9,062,562  
    Less interest income (952,287 ) (1,052,786 ) (3,712,239 ) (3,416,221 )
    Plus depreciation 5,565,955   6,598,549   23,707,797   26,076,687  
    EBITDA 15,847,144   21,170,176   81,889,099   101,585,205  
             
    Net income – Adjusted EBITDA        
    Net income 8,889,046   14,198,527   51,936,829   69,862,177  
    Plus/(Less) loss/(gain) on derivatives 255,736     (237,618 ) (99,286 )
    (Less)/Plus (gain)/loss on sale of vessels, net     (7,645,781 ) (46,384 )
    Plus impairment loss     2,816,873    
    Plus share based compensation 940,216   2,206,295   2,589,405   7,326,807  
    Plus interest and finance costs 2,344,430   1,425,886   9,956,712   9,062,562  
    Less interest income (952,287 ) (1,052,786 ) (3,712,239 ) (3,416,221 )
    Plus depreciation 5,565,955   6,598,549   23,707,797   26,076,687  
    Adjusted EBITDA 17,043,096   23,376,471   79,411,978   108,766,342  
             
    EPS – Adjusted EPS        
    Net income 8,889,046   14,198,527   51,936,829   69,862,177  
    Adjusted net income 10,301,430   16,404,822   50,486,835   77,251,441  
    Weighted average number of shares, basic 35,300,965   35,345,251   37,166,449   35,237,059  
    EPS – Basic 0.25   0.38   1.38   1.91  
    Adjusted EPS – Basic 0.29   0.44   1.34   2.11  
     
    StealthGas Inc.
    Unaudited Condensed Consolidated Statements of Income
    (Expressed in United States Dollars, except for number of shares)
      Quarters Ended
    December 31,
      Twelve month Periods Ended
    December 31,
      2023   2024   2023   2024
               
    Revenues              
    Revenues 34,139,248     43,467,117     143,527,769     167,262,185  
                   
    Expenses              
    Voyage expenses 2,878,732     2,679,927     11,429,716     9,594,880  
    Voyage expenses – related party 426,108     535,991     1,779,488     2,063,228  
    Vessels’ operating expenses 12,690,873     13,404,725     52,206,248     48,961,137  
    Vessels’ operating expenses – related party 207,500     212,500     911,250     875,002  
    Drydocking costs 27,696     1,855,672     2,641,706     5,312,614  
    Management fees – related party 1,048,800     1,089,040     4,531,920     4,258,240  
    General and administrative expenses 1,657,671     3,010,733     5,331,029     10,309,693  
    Depreciation 5,565,955     6,598,549     23,707,797     26,076,687  
    Impairment loss         2,816,873      
    Net gain on sale of vessels         (7,645,781 )   (46,384 )
    Total expenses 24,503,335     29,387,137     97,710,246     107,405,097  
                   
    Income from operations 9,635,913     14,079,980     45,817,523     59,857,088  
                   
    Other (expenses)/income              
    Interest and finance costs (2,344,430 )   (1,425,886 )   (9,956,712 )   (9,062,562 )
    (Loss)/gain on derivatives (255,736 )       237,618     99,286  
    Interest income 952,287     1,052,786     3,712,239     3,416,221  
    Foreign exchange (loss)/gain (27,829 )   25,598     (190,722 )   (70,692 )
    Other expenses, net (1,675,708 )   (347,502 )   (6,197,577 )   (5,617,747 )
                   
    Income before equity in earnings of investees 7,960,205     13,732,478     39,619,946     54,239,341  
    Equity earnings in joint ventures 928,841     466,049     12,316,883     15,622,836  
    Net Income 8,889,046     14,198,527     51,936,829     69,862,177  
                   
    Earnings per share              
    – Basic 0.25     0.38     1.38     1.91  
    – Diluted 0.25     0.38     1.37     1.90  
                   
    Weighted average number of shares              
    – Basic 35,300,965     35,345,251     37,166,449     35,237,059  
    – Diluted 35,430,883     35,409,350     37,236,951     35,333,160  
     
    StealthGas Inc.
    Unaudited Condensed Consolidated Balance Sheets
    (Expressed in United States Dollars)
      December 31,   December 31,  
      2023   2024  
             
    Assets        
    Current assets        
    Cash and cash equivalents 77,202,843     80,653,398  
    Trade and other receivables 4,506,741     6,156,300  
    Other current assets 130,589     193,265  
    Claims receivable 55,475     55,475  
    Inventories 1,979,683     3,891,147  
    Advances and prepayments 1,409,418     733,190  
    Restricted cash 659,137      
    Assets held for sale 34,879,925      
    Fair value of derivatives     387,630  
    Total current assets 120,823,811     92,070,405  
             
    Non current assets        
    Advances for vessel acquisitions 23,414,570      
    Operating lease right-of-use assets 99,379      
    Vessels, net 504,295,083     608,214,416  
    Other receivables 48,040     370,053  
    Restricted cash 5,893,721     3,867,752  
    Investments in joint ventures 39,671,603     27,717,238  
    Deferred finance charges 1,105,790      
    Fair value of derivatives 1,858,677      
    Total non current assets 576,386,863     640,169,459  
    Total assets 697,210,674     732,239,864  
             
    Liabilities and Stockholders’ Equity        
    Current liabilities        
    Payable to related parties 955,567     388,130  
    Trade accounts payable 9,953,137     10,994,434  
    Accrued liabilities 5,681,144     4,922,587  
    Operating lease liabilities 71,173      
    Deferred income 5,386,126     4,304,667  
    Current portion of long-term debt 16,624,473     23,333,814  
    Total current liabilities 38,671,620     43,943,632  
             
    Non current liabilities        
    Operating lease liabilities 28,206      
    Deferred income 1,928,712     213,563  
    Long-term debt 106,918,176     61,555,855  
    Total non current liabilities 108,875,094     61,769,418  
    Total liabilities 147,546,713     105,713,050  
             
    Commitments and contingencies        
             
    Stockholders’ equity        
    Capital stock 453,434     370,414  
    Treasury stock (44,453,836 )    
    Additional paid-in capital 446,938,868     409,912,934  
    Retained earnings 145,993,681     215,855,858  
    Accumulated other comprehensive income 731,814     387,608  
    Total stockholders’ equity 549,663,961     626,526,814  
    Total liabilities and stockholders’ equity 697,210,674     732,239,864  
     
    StealthGas Inc.
    Unaudited Condensed Consolidated Statements of Cash Flows
    (Expressed in United States Dollars)
     
      Twelve month Periods Ended
    December 31,
      2023   2024
       
    Cash flows from operating activities      
    Net income for the year 51,936,829     69,862,177  
           
    Adjustments to reconcile net income to net cash      
    provided by operating activities:      
    Depreciation 23,707,797     26,076,687  
    Amortization of deferred finance charges 1,345,941     711,378  
    Amortization of operating lease right-of-use assets 99,379     99,379  
    Share based compensation 2,589,405     7,326,807  
    Change in fair value of derivatives 789,509     108,841  
    Proceeds from disposal of interest rate swaps     1,018,000  
    Equity earnings in joint ventures (12,316,883 )   (15,622,836 )
    Dividends received from joint ventures 14,589,215     20,570,036  
    Impairment loss 2,816,873      
    Gain on sale of vessels (7,645,781 )   (46,384 )
    Changes in operating assets and liabilities:      
    (Increase)/decrease in      
    Trade and other receivables 238,627     (1,971,610 )
    Other current assets 139,925     (62,676 )
    Inventories 1,365,189     (1,664,736 )
    Changes in operating lease liabilities (99,379 )   (99,379 )
    Advances and prepayments (728,005 )   676,228  
    Increase/(decrease) in      
    Balances with related parties (1,532,943 )   (555,589 )
    Trade accounts payable (1,813,377 )   628,898  
    Accrued liabilities (100,515 )   (758,558 )
    Deferred income 2,058,409     (2,796,608 )
    Net cash provided by operating activities 77,440,215     103,500,055  
           
    Cash flows from investing activities      
    Insurance proceeds 126,666      
    Proceeds from sale of vessels, net 80,109,781     34,679,584  
    Acquisition and improvements of vessels (85,201 )   (106,169,013 )
    Maturity of short term investments 26,500,000      
    Return of investments from joint ventures 4,688,785     7,007,164  
    Net cash provided by/(used in) investing activities 111,340,031     (64,482,265 )
           
    Cash flows from financing activities      
    Proceeds from exercise of stock options 747,500     356,250  
    Stock repurchase (19,080,455 )   (338,176 )
    Deferred finance charges paid (988,166 )   (22,167 )
    Advances from joint ventures 11,847      
    Advances to joint ventures     (11,847 )
    Loan repayments (154,870,215 )   (108,236,401 )
    Proceeds from long-term debt     70,000,000  
    Net cash used in financing activities (174,179,489 )   (38,252,341 )
           
    Net increase in cash, cash equivalents and restricted cash 14,600,757     765,449  
    Cash, cash equivalents and restricted cash at beginning of period 69,154,944     83,755,701  
    Cash, cash equivalents and restricted cash at end of year 83,755,701     84,521,150  
    Cash breakdown      
    Cash and cash equivalents 77,202,843     80,653,398  
    Restricted cash, current 659,137      
    Restricted cash, non current 5,893,721     3,867,752  
    Total cash, cash equivalents and restricted cash shown in the statements of cash flows 83,755,701     84,521,150  

    The MIL Network

  • MIL-OSI Global: We study mass surveillance for social control, and we see Trump laying the groundwork to ‘contain’ people of color and immigrants

    Source: The Conversation – USA – By Brittany Friedman, Assistant Professor of Sociology at the USC Dornsife College of Letters, Arts and Sciences, University of Southern California

    Black and Latino communities are disproportionately affected by mass surveillance, studies show. Vicente Méndez/Getty Images

    President Donald Trump has vowed to target his political enemies, and experts have warned that he could weaponize U.S. intelligence agencies to conduct mass surveillance on his targets.

    Mass surveillance is the widespread monitoring of civilians. Governments typically target specific groups – such as religious minorities, certain races or ethnicities, or migrants – for surveillance and use the information gathered to “contain” these populations, for example by arresting and imprisoning people.

    We are experts in social control, or how governments coerce compliance, and we specialize in surveillance. Based on our expertise and years of research, we expect Trump’s second White House term may usher in a wave of spying against people of color and immigrants.

    A man apprehended in an immigration raid on Jan. 28, 2025, sits in a holding cell in New York City.
    Matt McClain/The Washington Post via Getty Images

    Spreading moral panic

    Trump is already actively deploying a key tactic in expanding mass surveillance: causing moral panics. Moral panics are created when politicians exaggerate a public concern to manipulate real fears people may have.

    Take Trump on crime, for example. Despite FBI data showing that crime has been dropping across the U.S. for decades, Trump has repeatedly claimed that “crime is out of control.” Stoking fear makes people more likely to back harsh measures purportedly targeting crime.

    Trump has also worked to create a moral panic about immigration.

    He has said, for example, that “illegal” migrants are taking American jobs. In truth, only 5% of the 30 million immigrants in the workforce as of 2022 were unauthorized to work. And in his Jan. 25, 2025, presidential proclamation on immigration, Trump likened immigration at the southern border to an “invasion,” evoking the language of war to describe a population that includes many asylum-seeking women and children.

    The second step in causing moral panics is to label racial, ethnic and religious minorities as villains to justify expanding mass surveillance.

    Building on his rhetoric about crime and immigration, Trump frequently connects the two issues. He has said that migrants murder because they have “bad genes,” echoing beliefs expressed by white supremacists. During the 2016 campaign, Trump’s coinage “bad hombre” invoked stereotypes of dangerous migrants crossing the U.S.-Mexico border to steal jobs and sell drugs.

    The president has similarly connected Black communities with crime. At an August 2024 rally in Atlanta, Georgia, Trump called the majority-Black city “a killing field.” The month prior, he said the same thing about Washington, D.C.

    Primary targets

    History shows that in the U.S. moral panics are most likely to target Latino, Indigenous and Black communities as a precursor to surveillance and subjugation.

    In the 18th century, Colonial politicians passed legislation likening the Indigenous people of the American colonies to “savages” and passed laws identifying Indigenous tribes as political enemies to be assimilated. If “killing the Indian” out of people didn’t work, they were to be tracked down and removed from the population through imprisonment or death.

    Another early form of moral panics escalating to spying and mass surveillance were southern slave patrols, which emerged in the early 1700s after pro-slavery politicians proclaimed that Black escapees would terrorize white communities. Slave patrols tracked down and captured not only Black escapees but also free Black people, whom they sold into bondage. They also imprisoned any person, enslaved or not, suspected of sheltering escapees.

    Once a group of people becomes the subject of moral panics and targeted for government surveillance, our research shows, the effects are felt for generations.

    Black and Indigenous communities are still arrested and incarcerated at disproportionately high rates compared with their percentage in the U.S. population. This even affects children, with Indigenous girls imprisoned at four times the rate of white girls, and Black girls at more than twice the rate of white girls.

    Low-tech methods

    These 21st-century numbers reflect decades of targeted surveillance.

    In the 1950s, the FBI under Director J. Edgar Hoover created the counter-intelligence programs COINTELPRO, allegedly for investigating communists and radical political groups, and the Ghetto Informant Program. In practice, both programs broadly targeted people of color. From Martin Luther King Jr. to U.S. Rep. John Lewis, Black activists were identified as a threat, spied on, investigated and sometimes jailed.

    A 1964 letter from J. Edgar Hoover expressing his dislike for Martin Luther King Jr.
    Jahi Chikwendiu/The Washington Post via Getty Images

    President Lyndon Johnson’s “war on crime,” a sweeping set of federal changes that militarized local police in urban communities, continued this mass surveillance in the 1960s. Later came the “war on drugs,” which an aide to President Richard Nixon later said was designed explicitly to target Black people.

    In subsequent decades, politicians would stir up new moral panics about Black communities – remember the “crack babies” who never really existed? – and use fear to justify police surveillance, arrests and mass incarceration.

    These early examples of mass surveillance lacked the technology that enables spying today, such as CCTV and hacked laptop cameras. Nonetheless, past U.S. administrations have been remarkably effective at achieving social control by creating moral panics then deploying mass surveillance to contain the “threat.” They enlisted droves of police officers, recruited informants to infiltrate groups and locked people away.

    These textbook surveillance methods are still routinely used now.

    Police fusion centers

    For many Americans, the term “mass surveillance” evokes the Department of Homeland Security, which was founded after the 9/11 terrorist attacks. This national agency, which forms part of a federal intelligence apparatus of more than 20 agencies focused on surveillance, has played a key role in mass surveillance since 2001, especially of Muslim Americans.

    But it has local help in the form of police units known as fusion centers. These units feed identification information and physical evidence such as video footage to federal agencies such as the FBI and CIA, according to a 2023 whistleblower report from Rutgers Law School.

    The New Jersey Regional Operations Intelligence Center, for example, is a police fusion center overseeing New York, New Jersey and Connecticut. It employs advanced military technology to gather massive amounts of personal data on people perceived as potential security threats. According to the Rutgers report, these “threats” are highly concentrated in Black, Latino and Arab communities, as well as areas with a high concentration of political organizing, such as Black Lives Matter groups and immigrant aid organizations.

    The New Jersey police fusion approach leads to increased arrest rates, according to the report, but there’s no real evidence that it prevents crime or terrorism.

    Guantanamo and black sites

    Given Trump’s pledges to further militarize border enforcement and expand U.S. jails and prisons, we anticipate a rise in spending on fusion centers and other tools of mass surveillance under Trump. The moral panics he’s been stirring up since 2015 suggest that the targets of government surveillance will include immigrants and Black people.

    Donald Trump speaks at a campaign event on April 2, 2024, in Grand Rapids, Mich.
    Spencer Platt/Getty Images

    Sometimes, victims of mass surveillance go missing.

    The Guardian reported in 2015 that Chicago police had been temporarily “disappearing” people at local and federal police “black sites” since at least 2009. At these clandestine jails, under the guise of national security, officers questioned detainees without attorneys and held them for up to 24 hours without any outside contact. Many of the victims were Black.

    Another infamous black site was housed at the Guantanamo Bay military base in Cuba, where the CIA detained and secretly interrogated suspected terrorists following the Sept. 11 terrorist attacks.

    Trump seems to be reviving the Guantanamo black site, flying about 150 Venezuelan migrants to the base since January 2025. It’s unclear whether the U.S. government can lawfully detain migrants there abroad, yet deportation flights continue.

    The administration has not shared the identities of many of the people imprisoned there.

    The authors do not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

    ref. We study mass surveillance for social control, and we see Trump laying the groundwork to ‘contain’ people of color and immigrants – https://theconversation.com/we-study-mass-surveillance-for-social-control-and-we-see-trump-laying-the-groundwork-to-contain-people-of-color-and-immigrants-221073

    MIL OSI – Global Reports

  • MIL-OSI: Finnvera Group’s Report of the Board of Directors and Financial Statements 2024 – Level of financing reduced from previous year, expectations of future demand positive – Result EUR 228 million

    Source: GlobeNewswire (MIL-OSI)

    Finnvera Group, Stock Exchange Release, 21 February 2025

    Finnvera Group’s Report of the Board of Directors and Financial Statements 2024

    Level of financing reduced from previous year, expectations of future demand positive – Result EUR 228 million

    Finnvera Group, summary 2024 (vs. 2023)

    • Result 228 MEUR (433) – The result for the period under review was strong for all business operations. Net interest income grew by 20% and net fee and commission income by 12%. During the period under review, Finnvera was able to partially reverse loss provisions for export credit guarantees and special guarantees, which have had a significant impact on the company’s result in recent years, especially those relating to cruise shipping companies. The reference period saw larger reversals of loss provisions than the period under review.
    • Result by business operations: Result of parent company Finnvera plc’s SME and midcap business stood at 23 MEUR (55) and that of Large Corporates business at 173 MEUR (351). The impact of Finnvera’s subsidiary, Finnish Export Credit Ltd, on the Group’s result was 32 MEUR (27).
    • The cumulative self-sustainability target set for Finnvera’s operations was achieved.
    • The balance sheet total EUR 14.8 bn (14.3) increased by 3%.
    • Contingent liabilities decreased by 9% and stood at EUR 14.9 bn (16.4).
    • Non-restricted equity and the assets of the State Guarantee Fund, which provide the Group’s reserves for covering potential future losses, increased by 12% and totalled EUR 2.1 bn (1.9).
    • Expected credit losses on the balance sheet were reduced by 4% to EUR 1.1 bn (1.2).
    • The NPS index (Net Promoter Score) used to measure client satisfaction improved by 15 points to 79 (64).
    • Outlook for 2025: The business outlook for cruise shipping companies continued to improve in 2024. The credit loss risk of export financing liabilities remains high, however, which causes uncertainty concerning the Finnvera Group’s financial performance in 2025.
    Finnvera Group, year 2024 (vs. 2023)
    Result
    228 MEUR
    (433), change -47%
    Balance sheet total
    EUR 14.8 bn
    (14.3), change 3%
    Contingent liabilities
    EUR 14.9 bn
    (16.4), change -9%
    Non-restricted equity and
    the assets of The State Guarantee Fund
    EUR 2.1 bn (1.9), change 12%
    Expense-income ratio
    17.3%
    (19.4), change -2,1 pp
    NPS index
    (net promoter score)
    79
    (64), change 15 points

    Comments from CEO Juuso Heinilä: 

    “Year 2024 was challenging for the Finnish economy, even if a cautious improvement could be observed in the early part of the year. Finland’s key export markets were also affected by a downturn, which dampened Finnish export companies’ prospects. While interest rates dropped and inflation decreased, geopolitical uncertainty persisted.

    Finnvera granted EUR 0.9 billion (1.8) in domestic loans and guarantees in 2024. The significant decrease in financing from the previous year is due to a major individual amount of working capital financing granted to a large corporate in the reference period. The level of SME and midcap financing was similar to the reference period. The largest share of funding by sector was granted to industry, and the regional drivers were the Helsinki Metropolitan Area and Lapland. Financing for investments did not reach the previous year’s level. The level of financing for corporate acquisitions and transfers of ownership was also lower than in previous years.

    A total of EUR 73 million (36) was granted in climate and digitalisation loans intended for green transition and digitalisation projects under the InvestEU guarantee programme. These loans were first granted in June 2023. To ensure that companies of all sizes have access to financing, we launched loans for micro-enterprises’ growth as a pilot project at the beginning of October 2024. Over three months, EUR 6 million in these loans was granted to micro-enterprises. The pilot project will continue until the end of March 2025, after which we will reassess the availability of financing for small companies.

    In accordance with Finnvera’s strategy, 92% of domestic financing was allocated to start-ups, SMEs seeking growth and internationalisation, investments, transfers of ownership, export and delivery projects, and SME guarantee projects. The long period of economic uncertainty eroded SMEs’ liquidity and increased the number of applications for corporate restructuring and bankruptcy.

    Finnvera granted export credit guarantees, export guarantees and special guarantees amounting to EUR 2.9 billion (5.4). The lower amount of export financing reflected the post-cyclical nature of Finnish exports and reduced demand for exports. Annual fluctuations are also always influenced by the timing of large individual export transactions. In particular, financing was granted to companies in the telecommunications, cruise shipping and mining sectors.

    Largest export credit guarantee agreement related to telecommunications sector in Finnvera’s history was signed in April concerning Nokia’s deliveries for the Indian 5G network worth USD 1.5 billion. In the mining sector, we financed Sibanye-Stillwater’s Keliber lithium project with a Finance Guarantee, which can be granted for domestic investments that support exports. In the energy sector, we financed Wärtsilä’s deliveries of energy storage systems for solar and wind power projects in the United States and Chile. These mining and energy projects, whose total value was approx. EUR 500 million, were the first export financing projects compliant with Finnvera’s climate criteria. Towards the end of the year, Finnvera participated in Meyer Turku’s construction financing that amounted to around EUR 1 billion for the Icon 3 ship.

    Finnish Export Credit Ltd, which is Finnvera’s subsidiary, granted EUR 0.6 billion in export credits (0.5) in 2024. While the demand for export credits increased slightly, it remains significantly lower than in pre-pandemic years. An increasing number of export transactions are financed by a bank to which Finnvera grants a guarantee.

    2024 was a successful year for Finnvera. The Finnvera Group’s result was EUR 228 million (433). The SME and midcap business, export credit guarantee and special guarantee operations, and subsidiary Finnish Export Credit Ltd turned a profit. Finnvera also built up its reserves for possible future losses. The business outlook for the cruise shipping sector, which is important for Finnvera’s export credit guarantee exposure, has continued to improve. Repayments have also helped to reduce exposure relating to Russia. In recent years, Finnvera has been able to partially reverse loss provisions for export financing, which have had a significant impact on the Group’s financial performance since 2020. The reversal of loss provisions has especially impacted the good results for the last two financial periods.

    As a result of crises affecting the global economy, the difficulties faced by some companies around the world and in various sectors have built up to form an insurmountable obstacle. During the period under review, Finnvera incurred major export credit guarantee losses in two cases. Our mission is to bear the risks of export companies. Our core business enjoys a high level of profitability, building up our reserves and creating preconditions for enabling companies’ growth and exports. However, the credit loss risks of exposure relating to export financing remain high, which may affect Finnvera’s future financial performance and reserves.

    We continued to develop our operations and services in line with our strategy in 2024. The ongoing upgrade of our basic information systems supports the digitalisation of services and a good client experience. Our client satisfaction reached an exceptionally high level, as did our personnel satisfaction. We invested in accelerating the growth of midcap enterprises in close cooperation with the European Investment Bank and the Tesi Group, and worked together with the Team Finland network and Business Finland to promote exports. We maintained export financing expertise, especially in SMEs and midcap enterprises, and we brought out new export financing instruments to ensure the availability of financing. The overhaul of the legislation applicable to Finnvera, which is included in the Government Programme and which is extremely important in terms of developing Finnvera’s operations and the competitiveness of export financing, was circulated for comments.

    We advanced our sustainability measures based on our goals in 2024. We joined the Net-Zero ECA Alliance of export credit agencies, which enables us to focus on the sustainability theme and enhance our impact through international cooperation. We developed Finnvera’s sustainability reporting as planned.

    In 2025–2028, our new strategy adopted by the company’s Board of Directors at the end of the year will emphasise increasing the volume of Finnish exports and the number of exporters as well as enabling growth and new business. The achievement of these goals will be supported by our competent personnel and management as well as client-oriented digitalisation. Finnvera contributes to ensuring that Finnish companies are able to invest, develop their products and get their products out around the world. This is a prerequisite for ensuring that we can continue to look after our welfare in Finland in the future.”

    Finnvera Group Financing granted, EUR bn 2024 2023 Change, %
    Domestic loans and guarantees 0.9 1.8 -51%
    Export credit guarantees, export guarantees and special guarantees 2.9 5.4 -47%
    Export credits 0.6 0.5 15%
    The fluctuation in the amount of granted financing is influenced by the timing of individual major financing cases.

    The credit risk for the subsidiary Finnish Export Credit Ltd’s export credits is covered by the parent company Finnvera plc’s export credit guarantee.

    Exposure, EUR bn 31 Dec 2024 31 Dec 2023 Change, %
    Domestic loans and guarantees 2.9 3.0 -4%
    Export credit guarantees, export guarantees and special guarantees 21.1 23.4 -10%
    – Drawn exposure 14.3 14.2 1%
    – Undrawn exposure 4.4 4.5 -2%
    – Binding offers 2.4 4.7 -49%
    Parent company’s total exposure 24.0 26.4 -9%
    Contract portfolio of export credits 10.2 11.0 -8%
    – Drawn exposure 6.5 7.3 -11%
    – Undrawn exposure 3.7 3.7 -2%
    The exposure includes binding credit commitments as well as recovery and guarantee receivables.

    Financial performance 

    The Finnvera Group’s result for 2024 was EUR 228 million (433). Finnvera’s result was strong for all business operations. EUR 46 million of the total result was generated in the last quarter of the year, and EUR 182 million between January and September. Compared to the year before, the result was most significantly affected by the changes in the amount of expected losses, or loss provisions. Loss provisions have had a significant impact on the Group’s result in recent years. Finnvera was able to partially reverse its loss provisions for export credit guarantees and special guarantees in 2024, especially those relating to cruise shipping companies. In the reference period, Finnvera was able to reverse more loss provisions than in the review period, which led to an exceptionally good result in 2023. The result for the review period was also significantly affected by higher net interest income and fee and commission income as well as changes in the value of items recognised at fair value through profit or loss.

    The Group’s realised credit losses and change in expected losses totalled EUR 49 million during the review period, whereas the corresponding item was positive with a value of EUR 210 million during the reference period. The realised credit losses of EUR 121 million (128) were slightly lower than in the reference period. During the period under review, two larger individual export credit guarantee compensations were paid. Expected losses, or loss provisions, decreased by EUR 51 million (320), of which the reversal of loss provisions for export credit guarantee and special guarantee operations accounted for EUR 74 million (376). Credit loss compensation from the State covering losses in domestic financing totalled EUR 20 million (18).

    Compared to the year before, the Group’s net interest income increased by 20% to EUR 139 million (115) and net fee and commission income by 12% to EUR 198 million (177). The higher level of market interest rates was a particularly important factor affecting the increased net interest income. The most significant factors increasing the net fee and commission income were recognition of guarantee premiums for reimbursed export and special guarantees and prepayments of individual liabilities as well as the reimbursement of insurance premiums received as a result of the cancellation of reinsurance contracts. The changes in the Group’s value of items recognised at fair value through profit or loss and net income from foreign currency operations amounted to EUR 8 million (-9).

    After the result of the period under review, the parent company’s reserves for domestic operations as well as export credit guarantee and special guarantee operations for covering potential future losses amounted to a total of EUR 1,878 million (1,676) at the end of December. These reserves, which also cover the credit risk of export credits granted by the subsidiary, consisted of the following: the reserve for domestic operations, EUR 432 million (405) as well as the reserve for export credit guarantees and special guarantees and the assets of the State Guarantee Fund for covering losses, totalling EUR 1,446 million (1,272). The State Guarantee Fund is an off-budget fund whose assets include the assets accumulated from the activities of Finnvera’s predecessor organisations. Under the Act on the State Guarantee Fund, the Fund covers the result showing a loss in the export credit guarantee and special guarantee operations if the reserve funds in the company’s balance sheet are not sufficient. The non-restricted equity of the subsidiary, Finnish Export Credit Ltd, amounted to EUR 230 million (198) at the end of December.

    Finnvera Group
    Financial performance
    2024
    MEUR
    2023
    MEUR
    Change
    %
    Q4/2024
    MEUR
    Q4/2023
    MEUR
    Change
    %
    Net interest income 139 115 20% 37 33 10%
    Net fee and commission income 198 177 12% 50 40 24%
    Gains and losses from financial instruments carried at fair value through P&L and foreign exchange gains and losses 8 -9 -2 -5 -54%
    Net income from investments and other operating income 0 1 -95% 0 0 -23%
    Operational expenses -53 -50 6% -16 -14 12%
    Other operating expenses, depreciation and amortisation -7 -5 35% -3 -1 118%
    Realised credit losses and change in expected credit losses, net -49 210 -19 209
    Operating result 236 439 -46% 47 262 -82%
    Income tax -8 -6 45% -1 -1 4%
    Result 228 433 -47% 46 261 -82%

    Outlook for financing 

    The worst of the recession is behind us, and the Finnish economy is forecast to start growing in 2025. Great expectations are currently placed on the improved outlook for exports as well as the growth and renewal of the entire business sector.

    We expect that the demand for Finnvera’s domestic financing will increase, including more and more financing for investments, as the economic upturn drives a need for more production capacity. Due to the long-standing uncertainty, the economic position of many companies is weak. Finnvera’s role is stressed in arranging financing and sharing the risk with other providers of financing.

    We encourage companies to grasp the growth opportunities created by the green transition with the help of our climate and digitalisation loans and other incentives for sustainable financing. We will continue piloting loans for micro-enterprises’ growth projects until the end of March 2025. While we expect the high demand for the loans to continue, we will reassess small companies’ access to financing after the conclusion of the pilot. Finnvera strives to be active wherever our input is needed to arrange access to financing.

    We expect that the demand for export credit guarantees will start growing in 2025 and that this growth will continue in 2026. Exportation of investment goods, which is vital for Finland’s exports, is post-cyclical and the increase in demand will be reflected in export credit guarantees granted by Finnvera with a delay. Positive signs can already be seen in several sectors, however. Finnvera plays an important role in granting guarantees for long-term trade. We encourage export companies to seek growth in emerging and new markets and to rely on Finnvera for financing export transactions and risk hedging. We will continue to grant export credit guarantees to Ukraine as part of Finland’s national reconstruction programme for the country.

    Finnvera, the Tesi Group and Business Finland will step up their cooperation with the goal of boosting companies’ growth, exports, and the impact of financing. We will continue to work actively together with Team Finland and promote the growth and internationalisation of companies, also while the renewal of public export functions is underway. Finnvera’s Trade Facilitators strive to bring together foreign buyers and Finnish exporters and to promote trade using Finnvera’s export financing together with Business Finland. The aims also include increasing the number of midcap enterprises in Finland.

    Outlook for 2025

    The business outlook for cruise shipping companies continued to improve in 2024. The credit loss risk of export financing liabilities remains high, however, which causes uncertainty concerning the Finnvera Group’s financial performance in 2025.

    Further information:

    Juuso Heinilä, CEO, tel. +358 29 460 2576

    Ulla Hagman, CFO, tel. +358 29 460 2458

    Finnvera publishes the Report of the Board of Directors and its financial statements as an XHTML file compliant with the European Single Electronic Format (ESEF) requirements. Auditor Ernst & Young Ltd has issued an independent assurance report that provides reasonable assurance concerning Finnvera’s ESEF financial statements. The XHTML file is available in Finnish and English. Finnvera additionally publishes the report and financial statements in PDF format.

    ESEF Report 2024 (ZIP)

    Finnvera Group’s Report of the Board of Directors and Financial Statements 1 January – 31 December 2024 (PDF)

    Distribution: NASDAQ Helsinki Ltd, London Stock Exchange, key media, www.finnvera.fi

    The report is available in Finnish and English at www.finnvera.fi/financial_reports

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    The MIL Network

  • MIL-OSI: ANNUAL RESULTS 2024: MOBILIZE FINANCIAL SERVICES CONTINUES TO GROW

    Source: GlobeNewswire (MIL-OSI)

       

    PRESS RELEASE

    21 February 2025
    ANNUAL RESULTS 2024:
    MOBILIZE FINANCIAL SERVICES CONTINUES TO GROW
    In 2024, Mobilize Financial Services reported an increase in sales1, with growth in the amount of financing of 2.4%. Mobilize Financial Services also reported a rise in pre-tax income to 1,194 million euros, thanks to strong growth in net banking income. This solid annual performance reflects the effective operational management of Mobilize Financial Services and the commercial dynamism of Renault Group brands.

    KEY FIGURES

    Sales performance

    • The number of financing contracts is stable (+0.6%) compared with 2023.
    • The amount of new financings is up 2.4% compared with 2023
    • The penetration rate for electric vehicles is 45% in 2024, i.e. 2.9 points higher than the penetration rate for other types of engines
    • The penetration rate, all engines combined, was 42.3%, down 1.1 point on 2023.
    • In a growing market, Mobilize Lease&Co’s portfolio of financing contracts is up 11% compared with 2023.
    • Mobilize Financial Services sold 3.7 million service and insurance contracts in 2024, down 4.4% on 2023.

    Financial performance

    • Net banking income (NBI) came to 2,180 million euros, up 11.2% on 2023.
    • Operating costs reached 1.30% of Average Performing Assets (APA)2, an improvement of 8 basis points compared with 2023.
    • The total cost of risk was 0.31% of APAs in 2024, compared with 0.30% in 2023.
    • At the end of the year, net assets at end3 amounted to 61 billion euros compared with 54.7 billion euros in 2023, an increase of 11.6%.
    • Net deposits collected increased by 2.3 billion euros to 30.5 billion euros.
    • Pre-tax income was 1,194 million euros, compared with 1,034 million euros at the end of December 2023.

    Gianluca De Ficchy, Chairman of the Board of Directors of RCI Banque SA: “In a rapidly changing automotive and banking environment, Mobilize Financial Services continues to demonstrate its strength by delivering an excellent commercial and financial performance and making a significant contribution to Renault Group’s results. In 2025, we will leverage synergies with the Group to accelerate the adoption of more sustainable mobility, while placing customer experience and satisfaction at the heart of our strategy. Together, we will continue to create value for all our stakeholders. “

    Martin Thomas, Chief Executive Officer of Mobilize Financial Services: “In 2024, Mobilize Financial Services delivered remarkable growth and proved its resilience, with a 2.4% increase in financing amounts and an 11.2% rise in net banking income. As we start 2025, we are determined to support our customers in adopting a more sustainable form of mobility by offering products and services tailored to new uses. We will also continue our efforts to achieve operational excellence, through exemplary management of our costs and risks “.

    SOLID SALES PERFORMANCE DRIVEN BY AN INCREASE IN NEW FINANCING

    Mobilize Financial Services will see the amount of new financings (excluding cards and personal loans) rise by 2.4% compared with 2023, to 21.5 billion euros, thanks to the growth in registrations by Renault Group, Nissan and Mitsubishi, the increase in average amounts financed and the acquisition of MeinAuto. Mobilize Financial Services financed 1,282,066 contracts in 2024, a stable volume compared with 2023 (+0.6%).

    In an automotive market that grew slightly by 2.3%, volumes for Renault Group, Nissan and Mitsubishi brands reached 2.25 million vehicles in 2024, up 3.9%.

    The penetration rate, all engines combined, will be 42.3% in 2024, down 1.1 points on 2023. The penetration rate for electric vehicles is 45%, 2.9 points higher than for other types of engines.

    Mobilize Financial Services sold 3.7 million service and insurance contracts in 2024, down 4.4% on 2023.

    Used vehicle financing was down 5.9% on 2023, with 310,747 loans financed.

    Mobilize Financial Services is continuing to roll out operational leasing offers in partnership with its dealer network, via Mobilize Lease&Co. In a buoyant operational leasing market, Mobilize Lease&Co aims to expand its fleet to one million vehicles by 2030. Renault Group’s full-service leasing offerings in Europe and Latin America are showing a very positive trend for 2024, with volumes up 11% on the previous year.

    In 2024, Mobilize Financial Services achieved a record level of customer recommendation with a Net Promoter Score4 of +59 in June 2024, up one point compared to November 2023, the date of the previous edition of this barometer. Mobilize Financial Services has also achieved a 79% satisfaction rate among its dealer customers, up 4 points compared with 2023, and a Net Promoter Score of +49 (+11 points compared with 2023).

    FINANCIAL PERFORMANCE CONFIRMS THE RELEVANCE OF MOBILIZE FINANCIAL SERVICES’ STRATEGY

    At the end of 2024, net assets at end of business reached 61 billion euros compared with 54.7 billion euros at the end of 2023, an increase of 11.6% on the previous year.

    Net banking income (NBI) came to 2,180 million euros, up 11.2% on 2023. This increase is due to growth in outstandings, the non-recurrence of a negative impact on the valuation of swaps observed in 2023 and the acquisition of MeinAuto at the beginning of 2024.

    Services account for 34% of NBI, down 2.8 points on 2023.

    The deposit collection business was buoyant. The net savings collected increased by 2.3 billion euros to 30.5 billion euros, compared with 28.2 billion euros at the end of December 2023.

    Operating costs amount to 727 million euros, up 21 million euros on 2023. This increase is due to the inclusion of MeinAuto’s operating costs in 2024. Operating expenses represent 1.30% of average performing assets (APA), an improvement of 8 basis points compared with 2023.

    The overall cost of risk is 0.31% of APAs, compared with 0.30% in 2023.

    Pre-tax income was therefore 1,194 million euros, compared with 1,034 million euros at the end of December 2023.

    MOBILIZE FINANCIAL SERVICES, MORE THAN 4,000 EMPLOYEES COMMITTED TO SUPPORTING THE TRANSITION TO MORE SUSTAINABLE MOBILITY

    Mobilize Financial Services focuses on four priorities:

    • Offers based on usage throughout the vehicle’s life cycle to meet the changing mobility needs of professional and retail customers. Mobilize Financial Services is continuing to develop its loyalty-building operational leasing offers, with the aim of developing a pan-European range of offers for new and used vehicles.
    • Insurance and services tailored to new mobility needs: new offers will be tested and deployed according to the value they bring to customers and to Renault Group, to cover new uses and the real needs of the market.
    • The ongoing development of information systems: Mobilize Financial Services continues to invest in the transformation of its digital tools, in order to benefit from the latest technological standards and increased flexibility in the management of its activities. This development is being carried out with particular attention to the customer experience, in compliance with cybersecurity and data protection requirements.
    • Operational excellence: the Group will take great care to improve its efficiency by simplifying and harmonising its processes, to the benefit of all its businesses.

    In pursuing these focus areas, Mobilize Financial Services relies on two fundamental levers:

    • Consolidate the management of its sustainable development strategy, in line with Renault Group’s ESG approach.
    • Managing risks and ensuring compliance throughout the Group to protect its customers and its business.
     
    About Mobilize Financial Services

    Attentive to the needs of all its customers, Mobilize Financial Services, a subsidiary of Renault Group, creates innovative financial services to build sustainable mobility for all. Mobilize Financial Services, which began operations over 100 years ago, is the commercial brand of RCI Banque SA, a French bank specializing in automotive financing and services for customers and networks of Renault Group, and also for the brands Nissan and Mitsubishi in several countries. With operations in 35 countries and over 4,000 employees, Mobilize Financial Services financed more than 1,2 million contracts (new and used vehicles) in 2023 and sold 3,7 million service contracts. At the end of December 2024, average earning assets stood at 61 billion euros of financing and pre-tax earnings at 1 194 million euros. Since 2012, the Group has deployed a deposit-taking business in several countries. At the end of December 2024, net deposits amounted to 30,5 billion euros, or 50 % of the company’s net assets.    

    The consolidated financial statements of RCI Banque Groupe and RCI Banque S.A. at 31 December 2024 were approved by the Board of Directors on 11 February 2025. The audit procedures on the consolidated financial statements for the year ended 31 December 2024 have beeń substantially completed. The audit reports relating to the certification of these consolidated financial statements will be issued after verification of the management report and finalisation of the procedures required for the purposes of publication of the 2024 Annual Financial Report in ESEF format. The 6-page business report with an analysis of the financial results for 2024 and the uncertified consolidated financial statements are available on www.mobilize-fs.com under the headings ‘Business Report’ and ‘Financial Reports’ on the ‘Finance’ page.

    Find more about Mobilize Financial Services on : www.mobilize-fs.com/

    Read this press release online, click here
    Press contacts

    Hopscotch PR
    +33 (0)1 41 34 22 03
    mobilize-fs-presse@hopscotch.fr

     

    1 Except Equity Accounted Companies
    2 Average performing assets: APA corresponds to average performing assets plus assets related to operating leases. For customers, this is the average of month-end performing assets. For the dealer network, it is the average of daily performing assets.
    3 Net assets at-end = Total net outstandings at-end + operating leases transactions net of depreciation and impairement.
    4 The Net Promoter Score (NPS) is the percentage of customers who rate their likelihood of recommending a company, product or service to a friend or colleague as 9 or 10 (“promoters”) minus the percentage who rate this likelihood as 6 or less (“detractors”) on a scale of 0 to 10.

    Attachment

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  • MIL-OSI USA: King to Senate Colleagues: “We’ve Got to Wake Up [and] Protect this Institution”

    US Senate News:

    Source: United States Senator for Maine Angus King
    To watch the floor speech click here
    WASHINGTON, D.C.— U.S. Senator Angus King (I-ME) today spoke on the Senate floor to share his growing concerns over the Trump Administration’s largely unconstitutional and unprecedented overreach – sharing the usurpation of Congressional Authority that has now reached the constitutionally-directed ‘power of the purse.’  In the speech, King also shared the detrimental impacts of reckless, indiscriminate government cuts on critical federal functions like management of the national parks and care for our veterans:
    The news is coming so hard and fast these days, that it’s hard to sort it all out. Every day seems to be something new that captures our attention, our concern, our interest. And what I’d like to do today is try to put some of it in perspective and what’s going on in our governing of this country. I don’t believe what I’m going to be talking about today is partisan. It should not be partisan because what I’m really talking about is competent government and constitutional government.  Really two categories — competent government and constitutional government. That should not be a controversial issue. Neither of those are something that we should be arguing about. It’s what we have a responsibility to carry through in terms of our jobs here in the U.S. Senate. So the two categories I want to talk about — my headings are thoughtless and dangerous. 
    First I want to talk about thoughtless. The hiring freeze. A hiring freeze can be an effective tool if it’s used thoughtfully and systematically. But to do it across the board without a process for exceptions that’s built into it, you end up with all kinds of unintended and negative consequences. Firefighters, parks, losses elsewhere by attrition. There should be a systematic exemption process. Now it’s haphazard and random. Park seasonal employees first were under the hiring freeze, now they’re not. It’s sort of like, oh, oh, or, we’re going to be okay without park seasonal employees. VA frontline health workers were at first subject to the hiring freeze then people said, oh, no, we didn’t mean doctors and nurses, so that’s okay. You can hire them. My point is it’s not a rational process. It’s ready, fire, aim. Literally, ready, fire, aim is what we’re talking about and people aren’t doing this in a thoughtful and systematic way. And, by the way, the difference between frontline deliverers of care at the V.A. and the people who answer the phone who are categorized as bureaucrats, I don’t think there’s a stark difference there. If you’re a veteran and are seeking care and an appointment at a V.A. health facility and nobody answers the phone, that’s a denial of benefits. That’s a denial of benefits, just as if they close the door in your face. That’s what we’re talking about, is weakening the systems that are serving our public. 
    The hiring freeze, it’s possible to do a hiring freeze. When I was governor of Maine, I instituted a hiring freeze, but we did it in a systematic and thoughtful way. We had a process for dealing with exemptions and without destroying the morale and throwing the entire operation of government into chaos. And, by the way, why do we have the government? To serve the people. To serve the people. 
    So let’s talk about the next step: the firings. The famous fork in the road letter is a perfect example of a thoughtless way to approach a problem. The letter went to everybody. The letter wasn’t selective. It went to everybody — all civilians in the CIA, in the National Security Agency, in the Defense Department. Also, of course, all the other civilian agencies. But it wasn’t targeted in a way. If you want to leave federal service, we’ll pay you through September, but it hit everybody. Again, it’s not a rational or thoughtful way to trim the federal workforce. You should be talking about where are we do we have too many people, do we have overstock in terms of public servants and where do we need more, for example. But instead it went to everybody. By definition, that’s not a rational process. Firing — let me just put this in perspective, by the way. On the fork in the road letter, the estimate is as of today 75,000 people have taken that option and left. And I suppose the people who are behind this think that’s a great victory. The dollars saved from those 75,000 people represent one tenth of one percent of the federal budget. So people out who are seeing, we’re cutting the budget, we’re cutting, we’re saving, we’re saving the taxpayers money. One tenth of one percent. Given the chaos and the uncertainty and the deletion of services to our American people, I would argue that’s not worth it. One tenth of one percent. Everyone got these letters. People are being fired now in the CIA, FBI, the V.A., and on this letter, what if only the best people take the option to leave? Then you’ve really shot yourself in the foot. You’ve encouraged people who were going to retire anyway or who could get a better job in the private sector. So it’s an anti-intelligent way to handle this. 
    And then you got situations like at the Department of Energy, the first weekend they fired 350 people in the National Nuclear Security Administration, the people who handle nuclear materials and are responsible for our nuclear stockpile. They fired I think it was something like 20% of the personnel. Three or four days later, they realized, uh oh that was a mistake. A good, solid, thoughtful process wouldn’t have made a mistake like that. They would have realized from the outset that these are jobs that we aren’t going to be firing, we aren’t going to be eliminating. It seemed to be based on some kind of quota. I don’t know what it is. And then — okay, now we’re seeing everybody being fired who’s on probation. Probationary people, people who work for the government for less than a year or two. Okay, again that’s arbitrary — that’s arbitrary. Being on probation doesn’t mean you’re an effective or not an effective employee. You could be one of the best employees in the whole federal government and you just came on and yet you’re going to be fired. It has nothing to do with the productivity or skill of the worker. It has nothing to do with the importance of the position. It has nothing to do with the effectiveness of the agency in question, serving the people of Maine. If you’re probationary, you’re gone. Here’s another thing about probation. It turns out in the federal government, if you’re promoted, you’re on probation in the new position. You may have worked in the department for five or ten years. You’re on probation. You’re fired. Even though you have five or ten years of experience. And people did get these ridiculous letters saying your performance has not been adequate. There was no basis for those letters. It was arbitrary. And that’s remember I said my categories are thoughtless and dangerous. This is thoughtless — probation. 
    Oh, by the way, about 30% of the federal workforce are veterans. Now, we don’t know the exact figures. That’s one of the problems. We have no transparency about what’s going on here and who’s actually being let go and who isn’t, but a reasonable extrapolation is, 30% of the people being fired are veterans. People who put their lives on the line for this country. And then they went into public service and they’re being fired. That’s outrageous. Again, was no one thinking about this? A thousand people were fired at the V.A. Just a couple of days ago. We learned that people supporting the V.A. crisis line were fired. What genius thought that was a good idea? Last Friday, immigration judges were fired. We’re talking about immigration and border and control of immigration, and we’re firing immigration judges? What possible sense does that make? Here’s one. We’ve had — I think three curious aircraft incidents in the last month, and they just fired I think 300 people at the FAA. Great, including people who are in the business of maintaining the systems that keep our airplanes safe. In the wake of three serious airplane crashes, including one here in Washington that killed 67 people, we’re firing people at the FAA? Give me a break! What kind of sense does that make? What kind of service is that to the people of the United States? Here’s one that’s not life or death, but the National Park Service. 1,000 people were fired last weekend at the National Park Service. I suspect they were probationary, that means okay they’d only been there a year or to. But that doesn’t mean they weren’t in jobs that were important. The headline in this morning’s paper, chaos at the national parks. The lines are twice as long. If there’s chaos at the national parks in February, lord knows what it’s going to be in June or July. In Yosemite, in Acadia in my state of Maine. And here’s a beauty, some of these people that are be fired are people who collect fees at the park. So to save a buck, we’re going to lose $5 from fees not being collected. Genius. Come on. Five percent of the workforce at the national park service are being fired, and I can tell you, I’m the co-chair of the National Park Subcommittee, the Energy & Natural Resources Committee, we need more people at the national parks, not less. We’ve had a staffing shortage going back half a dozen or ten years where visitation is way up and staff is flat or declining. Now it’s really declining. And this is a direct hands-on experience for the American people. Gettysburg — they’ve been laying off people at the battlefield. Last night apparently something called the Presidential Management Fellowship Program, a training program that’s decades’ old that brings talented people into the federal government, eliminated. No explanation, no rational. Eliminated. 
    Okay, that’s the thoughtless part. Let me give you a little personal experience. When I was elected governor of Maine, we had a serious deficit. We were in the middle of a recession. We went through a process very similar to the impetus for what’s going on now. We looked at the entire workforce of the state of Maine. But we did it in a thoughtful and transparent way. We developed a task force that included private citizens, legislators, and members of the administration, and we took eight months, Mr. President, eight months, not eight weeks, and we looked at the entire structure of the state of Maine government and reduced our workforce by about 10%, a significant reduction. But we did it in a thoughtful way and in a way that made sense in terms of the ongoing service to the people of Maine. 
    So it can be done, and I’m not unsympathetic with the idea of making things more efficient. And even possibly downsizing the government where it’s called for and where additional people aren’t necessary. So, I’m not here to say we shouldn’t be looking for efficiency and saying everything in the federal government is perfect. I don’t believe that for a minute. But I think if we’re going to take on this exercise, it ought to be done in a sensible way by people who know what they’re doing. 
    And that brings me to DOGE. I don’t know what they’re doing. Nobody does. I don’t know who these 25-year-olds in the IRS, rummaging around in the IRS I.T. System. We learned the last couple days Social Security. What are they doing? Who are they? What are their qualifications? Do they have security clearances? Do they have conflicts of interest? All of the rules designed to protect us from people making arbitrary decisions that aren’t accountable, you talk about bureaucrats being unaccountable, these are the ultimate unaccountable people. We don’t know what their relationship is to the federal government, what authority they have, up what law they’re operating. It’s clear from mistakes like firing 350 people at the Nuclear Security Agency, they don’t know what they’re doing. They’re firing people who we need. Okay, that’s the thoughtless part. It’s inexcusable. That’s just pure efficiency of government of doing the right thing, and it can be done, but these people aren’t doing it. 
    The second part of what’s going on is the dangerous part, and this is where I call on my colleagues on the other side of the aisle who are standing by and watching our government be attacked with no response. Elimination of entire congressionally created agencies. USAID was established by statute and over a weekend these people fired everybody, closed the agency, took the name off the door, and threw the rest of the world into chaos, where these people were working on important projects all over the world, that were part of our outreach to the world. You know what? As soon as we went out of business at A.I.D., China is right in the market. It’s like walking away from engagement with the world. It couldn’t be a more self-defeating piece of work. By the way, it’s a tiny part of the federal budget. And James Mattis famously said, when he was a general, if you cut the foreign aid budget, you’re going to have to buy me more bullets. Foreign aid is part of the national security of this country, and to demolish this agency without any input from congress, without any relationship to the Foreign Affairs Committee or anybody else up here in the congress, is grossly unconstitutional. It’s grossly unconstitutional. 
    Here’s the problem, Mr. President, this isn’t just a battle between the Senate and the House and the President and they’re fighting about powers. No, the reason the framers designed our Constitution the way they did was that they were afraid of concentrated power. They had just fought a brutal eight-year war with a king. They didn’t want a king. They wanted a constitutional republic, where power was divided between the Congress and the President and the courts, and we are collapsing that structure. And the structure wasn’t there for fun. It wasn’t, hey, we’ll design this complicated system. It was there to protect our freedom. Because the people that wrote our Constitution understood human nature, and they understood a very important thousand-year-old principle — power corrupts, and absolute power corrupts absolutely.
    The whole idea was to divide power, and to the extent we allow this assault on our Constitution, this collapsing and excessive power being granted to the executive to ignore the laws passed by congress, and by the way, appropriations bills are laws passed by congress, which the administration is also ignoring by freezing funding for programs authorized and funded by congress, to the extent we do that, we’re not only making a mistake now, but we’re altering the essential structure of our Constitution that’s there for a reason, that’s there to protect our freedom. And the people cheering this on I fear, in a reasonably short period of time, are going to say where did this go? How did this happen? How did we make our president into a monarch? How did this happen? How it happened is we gave it up! James Madison thought we would fight for our power, but no. Right now, we’re just sitting back and watching it happen. Article 2 of the Constitution, the President said, oh, article 2 gives me a lot of power. No, it doesn’t. It makes the president commander in chief. That’s true. Here’s the key sentence in Article 2 of the constitution, which defines the president’s power, the key sentence is not the power of the president, the responsibility of the president is to take care that the laws being faithfully executed. Not write the laws. Not deny the laws. Not ignore the laws. Not pick which laws he or she To take care that the laws are faithfully executed. That’s the responsibility of the President. 
    Right now, those laws are being ignored. Impoundment. Impoundment. The President trying to say Congress appropriated this money through appropriation bill signed by president, but I’m not going to spend it because I don’t like it, I don’t like that purpose, whatever it is. I’m sorry. It’s absolutely straight up unconstitutional, and it’s illegal. President Nixon tried to do that in 1973, and the Congress, virtually unanimously, passed the impoundment control act which said no, presidents can’t do that. They can’t ignore the will of congress because Article 1 of the Constitution gives the congress the power of the purse. We’re giving it away this week. We’re standing by and watching it, watching the essential power of this body evaporate. Not evaporate, migrate down the street to 1600 Pennsylvania Avenue. 
    The power was divided for a reason. There’s criticism in the press saying people are talking about a constitutional crisis, they’re crying wolf. This is a constitutional crisis. It’s the most serious assault on our Constitution in the history of this country. It’s the most serious assault on the very structure of our Constitution, which is designed to protect our freedoms and liberty, in the history of this country. It is a constitutional crisis, and I’ll tell you what makes it worse, the President and the Vice President are already hinting that they’re not going to obey decisions of the courts. Many of my friends in this body say it will be hard, we don’t want to buck the President, we’ll let the courts take care of it. Number one, that’s a copout. It’s our responsibility to protect the Constitution. That’s what we swear to when we enter this body. To stand back and say we’re going to watch all this happen, and the courts will take care of it, that’s an abdication of our responsibility. 
    If you look at history, yes, it’s true, presidents have gained power. In my reading of history usually it wasn’t because presidents usurped power, but the congress abdicated it. We haven’t declared war, for example, since 1942, yet that’s a clear responsibility of congress and we sure have been in some scrapes since 1942. We’ve abdicated that power, and we’re now in the process of abdicating the power to control the appropriations process. I mention about DOGE, no authority, no accountability, no transparency, we literally don’t know what they’re doing, we can’t find out what they’re doing. Just this week, the destruction of the independent agencies, created by congress. They were created as independent agencies for a reason, because they didn’t want them to be dominated by the vicissitudes of politics. The president gets to appoint members of the board, and they’re very carefully balanced, not firing someone at the National Labor Relations Board so there’s no quorum so they can’t act. That’s a direct violation of congressionally established policy. These independent agencies were created for a reason. Again, oh, I forgot to mention, illegal firing of inspector generals. The Senator from Iowa is a champion of inspector generals. In the first few days, something like 18 inspector generals were fired, completely contrary to the law. The law is the congress must be given 30 days’ notice of the firing of an inspector general, and reasons therefore. Not done! Not a peep. 
    What’s it going to take for us to wake up, when I say us, I mean this entire body, to wake up to what’s going on here? Is it going to be too late? Is it going to be when the President has secreted all this power and the congress is an afterthought? What’s it going to take? The offenses keep piling up. As I said, leaving it to the courts, number one, is a copout, and number two, when the Vice President said something, I can’t remember exactly what he said, but ‘the courts should not have the power to do this.’ Of course, the President over the weekend famously quoted Napoleon, ‘when you’re saving your country, you don’t have to obey any law.’ Wow, a President of the United States quoting Napoleon about not having to obey the law. 
    So, I intended to talk about Ukraine, but Senator Tillis and Senator Shaheen did it so articulately, I think I’ll let that pass, except to say it’s shameful we’ve suddenly pivoted from the support of a democracy that was grossly and illegally invaded, from the support of that country to the support of a murderous dictator. I heard something about Zelenskyy is a dictator. The only dictator in this game, Mr. President, is Vladimir Putin. He’s the dictator. To argue that somehow Ukraine started the war? What universe is that — is somebody in that would say something like that? Again, I won’t pursue, but I can tell you Putin’s happy, XI Jinping is happy, Iran is happy, North Korea is happy. They love what’s going on, to see us retreating from the world, whether it’s A.I.D. or Ukraine. They love to see us retreating from the world, looking weak and looking unreliable. 
    Finally, on this point, we seem to be systematically alienating our allies. I’ve been on Armed Services for 12 years and have learned that the key asymmetric advantage this country has in the world is allies. China has customers. We have allies. Well, we’re giving that away. If I wasn’t on the floor of the U.S. Senate, I’d use a slightly different term, but we’re giving away our asymmetric advantage in the world by what looks like systematically alienating allies, whether it’s threats of tariffs or speeches in Europe telling them what their problems are, basically saying we’re going to abandon Europe. What a great idea, abandon Europe at a time there’s a murderous dictator with his eyes on the Baltics, Poland, and said he would like to reestablish the Soviet Empire. The worst possible geopolitical thing we could do would be to abandon Ukraine.
    So, Mr. President, this is a constitutional crisis, and we’ve got to respond to it. I’m just waiting for this whole body to stand up and say no, no, we don’t do it this way. We don’t do it this way. We do things constitutionally. Yes, it’s more cumbersome, it’s slower, that’s what the framers intended. They didn’t intend to have an efficient dictatorship, and that’s what we’re headed for. Mr. President, this is a very dangerous moment. We’ve got to wake up, protect this institution, but much more importantly protect the people of the United States of America. Thank you, Mr. President. 

    MIL OSI USA News

  • MIL-OSI Security: Law Enforcement Seizes Range Rover and Over $4 Million in Health Care Fraud Proceeds from Miami Couple Charged with Health Care Fraud and Money Laundering Conspiracies

    Source: Office of United States Attorneys

    MIAMI – Magaly Travieso, 53, of Miami, Fla., was charged with conspiracy to commit health care fraud, and Yudorki Ramirez, 52, of Miami, Fla., was charged with conspiracy to commit money laundering.

    According to the allegations, Travieso was an advanced practitioner registered nurse and the owner of ProMed Healthcare, L.L.C., a medical clinic that purportedly provided back and shoulder braces, physical therapy, psychosocial rehabilitation, and other mental health therapy services to beneficiaries with commercial insurance, Medicare, and Medicare Advantage Plans, and to Medicaid recipients. From approximately March 2019 through at least January 2023, Travieso allegedly conspired with others to submit over $20 million in fraudulent claims for reimbursement, of which ProMed received over $10 million. 

    Once those health care fraud proceeds were deposited into ProMed’s bank accounts, Travieso and her former spouse, Ramirez, allegedly used the fraud proceeds for their personal use and benefit.  For example, allegedly, Travieso spent approximately $75,000 in proceeds on the purchase of a 2021 Land Rover Range Rover in the name of ProMed and approximately $750,000 in proceeds on the purchase of her residence in Miami, Florida.  Similarly, Ramirez allegedly spent approximately $141,923.02 of proceeds on the purchase of his residence in Miami.  Ramirez also allegedly transferred approximately $2,068,904.55 of health care fraud proceeds to his investment accounts.  In June 2024, pursuant to seizure warrants, law enforcement seized Travieso’s Range Rover and over $4 million in health care fraud proceeds from bank accounts belonging to Travieso and Ramirez.

    Hayden P. O’Byrne, U.S. Attorney for the Southern District of Florida, Acting Special Agent in Charge Justin E. Fleck from the Federal Bureau of Investigations, Miami Field Office, Acting Special Agent in Charge Isaac Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office and Florida Attorney General Ashley Moody for the Florida Office of the Attorney General Medicaid Fraud Control Unit (MFCU) made the announcement.

    This case is being investigated by the FBI Miami Field Office, Health and Human Services Office of Inspector General, and Medicaid Fraud Control Unit of the Florida Agency for Health Care Administration.  Assistant U.S. Attorney Joseph Egozi is prosecuting the case and Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.

    ###

    MIL Security OSI

  • MIL-OSI Global: Trump is ruling like a ‘king’, following the Putin model. How can he be stopped?

    Source: The Conversation – Global Perspectives – By William Partlett, Associate Professor of Public Law, The University of Melbourne

    A month in, and it is clear even to conservatives that US President Donald Trump is attempting to fundamentally reshape the role of the American president.

    Trump and his supporters sees the natural authority of the American president in broad terms, similar to those of the Russian president, or a king. Trump, in fact, has already likened himself to a king.

    This desire to “Russify” the presidency is not an accident: Trump and many of his supporters admire the king-like power that Vladimir Putin exercises as Russian president.

    Understanding how Trump is attempting to transform presidential power is key to mobilising in the most effective way to stop it.

    Decrees by a ‘king’

    Russia’s system of government is what I call a “crown-presidential” system, which makes the president a kind of elected king.

    Two powers are central to this role.

    First, like a king, the Russian “crown-president” does not rely on an elected legislature to make policy. Instead, Putin exercises policy-making authority unilaterally via decree.

    Putin has used decrees to wage wars, privatise the economy and even to amend the constitution to lay claim to the parts of Ukraine occupied by Russia since 2014.

    He has also used these decrees in a performative way, for example, by declaring pay raises for all Russian state employees without any ability to enforce it.

    Over the last month, Trump has made similar use of decrees (what the White House now terms “presidential actions”).

    He has issued scores of presidential decrees to unilaterally reshape vast swathes of American policy – far more than past presidents. Trump sees these orders as a way of both exercising and demonstrating his vast presidential power.

    Control over the bureaucracy

    Second, like a king, Putin does not allow the Russian legislature to use the law to organise the executive branch and create agencies independent of presidential control. Instead, he has unquestioned dominance over both the organisation and staffing of the executive branch. This has given him vast power to dominate politics by controlling information gathering and legal prosecutions.

    A similar push is underway in the United States. Trump has appointed key loyalists to head the Department of Justice and Federal Bureau of Investigation.

    Moreover, he is seeking to restructure the executive branch by abolishing some agencies altogether and vastly reducing the size of the workforce in others.

    Can the courts stop Trump?

    Trump’s attempt to Russify the American presidency undermines the American constitutional order.

    Courts are the natural “first responders” in this kind of crisis. And many courts have blocked some of Trump’s early decrees.

    This legal response is important. But it is not enough on it own.

    First, the US Supreme Court might be more willing to accept this expansion of presidential power than lower courts. In a ruling last year, for example, the court granted the president immunity from criminal prosecution, showing itself to be sympathetic to broad understandings of executive power.

    Second, presidential decrees can be easily withdrawn and modified. This can allow Trump and his legal team to recalibrate as his decrees are challenged and find the best test cases to take to the Supreme Court.

    Third, parts of the conservative right have long argued for a far more powerful president. For instance, the idea of a “unitary executive” has been discussed in conservative circles for years. This essentially claims that the president should be able to direct and control the entire executive branch, from the bureaucracy to prosecutors to the FBI.

    These arguments are already being made to justify Trump’s actions. As Elon Musk has said, “you could not ask for a stronger mandate from the public” to reform the executive branch. These arguments will be made to courts to justify Trump’s expansion of power.

    Fourth, even if the Supreme Court does block some decrees, it is possible the White House will simply ignore these actions. We had an early glimpse of this when Trump posted that “He who saves his Country does not violate any Law”.

    Vice President JD Vance has also said judges “aren’t allowed” to block the president’s “legitimate power”.

    The importance of political mobilisation and messaging

    Trump’s aggressive use of presidential power is not just a constitutional crisis, it is a political one. For those seeking to resist, this is too important to just be left to the courts; it must also involve America’s key political institutions.

    The most obvious place to start is in Congress. Lawmakers must act decisively to assert the legal power granted to them in the constitution to check the power of the presidency. This would include active Congressional use of its budgeting power, as well as its oversight powers on the presidency.

    This could happen now if a few Republicans were to take a principled position on important constitutional issues, though nearly all have so far preferred to fall in line. Democrats could retake both branches of Congress in the midterm elections in 2026, though, and assert this power.

    The states can and should also act to resist this expansion of presidential power. This action could take many forms, including refusing to deploy their traditional police powers to enforce decrees they view to be unconstitutional or unlawful.

    In mobilising to defend the constitution, these institutions could appeal to the American people with more than the narrow legal argument that Trump’s acts are unconstitutional. They could also make the broader political argument that turning the American president into a Russian-style, elected king will foster a form of inefficient, unresponsive and corrupt politics.

    Or, in the words of The New York Times columnist Ezra Klein, “it’s the corruption, stupid”.

    Time is of the essence. Russia shows the more time a “crown-president” is able to operate, the more entrenched this system becomes. For those hoping to preserve American democracy, the time is now for not just legal, but political resistance.

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

    ref. Trump is ruling like a ‘king’, following the Putin model. How can he be stopped? – https://theconversation.com/trump-is-ruling-like-a-king-following-the-putin-model-how-can-he-be-stopped-249721

    MIL OSI – Global Reports

  • MIL-OSI USA: Padilla Warns Against Kash Patel’s Nomination to Lead the FBI

    US Senate News:

    Source: United States Senator Alex Padilla (D-Calif.)

    WATCH: Padilla calls on Republicans to stand up against unfit FBI Director nomineeWASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.), a member of the Senate Judiciary Committee, joined Committee Democrats in sounding the alarm on Kash Patel’s reckless nomination to be Director of the Federal Bureau of Investigation (FBI). Padilla delivered remarks ahead of Patel’s confirmation vote at a press conference outside FBI headquarters in Washington, D.C. and in a speech on the Senate floor. Patel was confirmed as FBI Director this afternoon by a final vote of 51-49.
    During the press conference this morning, Padilla raised serious concerns about Patel’s lack of judgement, independence, and preparedness to protect Americans and uphold the Constitution. He also condemned President Trump’s pattern of selecting unfit and unqualified candidates like Patel for senior positions in his administration.
    “Only in the year 2025 — when President Trump has the Republican Party basically in a headlock — can an extreme nominee like Kash Patel be put forward with the support of the President and seemingly the support of Republicans in the Senate.”
    “This isn’t just politics. There is a real threat to the safety of Americans in every community across the country. If he is confirmed, the purging of law enforcement will continue. If he is confirmed, this department will be weaponized, as he has threatened to do. If he is confirmed, Americans will be less safe.”
    On the Senate floor, Padilla called out Patel’s extreme loyalty to President Trump over his duty to oversee the nation’s premier law enforcement agency.
    “Here we are, pretending as if a man who promised to shut down the FBI headquarters on day one and turn it into a museum for the ‘Deep State’ is now fit to lead the FBI. You see, time and again, Kash Patel has shown that his loyalty lies not with the rule of law, but with Donald Trump.”
    “When it comes to protecting the security of our nation, there is no room between patriotism and patronage. The American people need and deserve a public servant who is 100 percent committed to the around-the-clock safety of the American people. Unfortunately, through his actions over the course of the last several years, [and] his conduct this past month before the Judiciary Committee, Kash Patel has demonstrated a dangerous lack of judgment, lack of preparation, and lack of independence.”
    Padilla blasted Patel for possibly lying under oath during his confirmation hearing. Despite swearing that he had no role in the firing of career FBI employees, whistleblowers have exposed Patel’s direct involvement in the mass purge of law enforcement professionals. Earlier this month, Padilla demanded answers from Patel on the removal or reassignment of career law enforcement officials across the Department of Justice and the FBI.
    Padilla also warned that Patel has openly advocated for unprecedented and reckless actions, including weaponizing the Justice Department to target political opponents and journalists, profiting from conspiracy theories about a “Deep State,” promoting an “enemies list” of public servants, and even selling picture books to children to spread disinformation about the 2016 election. He also called out Patel’s alarming refusal during his confirmation hearing to commit to enforcing existing gun laws that save lives.
    “Colleagues, stretching the truth — or potentially outright lying — may score him points with President Trump, but as Director of the FBI, it will only put American lives at risk. Think about it. To all the Americans who might be watching from home: you wouldn’t put an arsonist in charge of the fire department, would you? But with Kash Patel at the top of the FBI, that’s exactly what we’d get.”
    Padilla cautioned that confirming Patel would set a “dangerous precedent,” further eroding public safety and trust in law enforcement. He urged Senate Republicans to oppose his confirmation.
    “When a loyalist FBI Director abuses the position and fails to protect the American people, it won’t just be Kash Patel that will be held accountable. It won’t just be President Trump we will try to hold accountable. It will be every member of this body who supported his nomination that will also be held accountable.”
    Earlier this month, Senator Padilla and his Democratic colleagues on the Senate Judiciary Committee spoke out against Kash Patel’s nomination and urged their Republican colleagues to oppose him. During Patel’s confirmation hearing, Padilla raised serious concerns about his fitness to lead the FBI.
    Video of Padilla’s full remarks at today’s press conference is available here and can be downloaded here. Video of Padilla’s full floor remarks is available here and can be downloaded here.

    MIL OSI USA News

  • MIL-Evening Report: Trump is ruling like a ‘king’, following the Putin model. How can he be stopped?

    Source: The Conversation (Au and NZ) – By William Partlett, Associate Professor of Public Law, The University of Melbourne

    A month in, and it is clear even to conservatives that US President Donald Trump is attempting to fundamentally reshape the role of the American president.

    Trump and his supporters sees the natural authority of the American president in broad terms, similar to those of the Russian president, or a king. Trump, in fact, has already likened himself to a king.

    This desire to “Russify” the presidency is not an accident: Trump and many of his supporters admire the king-like power that Vladimir Putin exercises as Russian president.

    Understanding how Trump is attempting to transform presidential power is key to mobilising in the most effective way to stop it.

    Decrees by a ‘king’

    Russia’s system of government is what I call a “crown-presidential” system, which makes the president a kind of elected king.

    Two powers are central to this role.

    First, like a king, the Russian “crown-president” does not rely on an elected legislature to make policy. Instead, Putin exercises policy-making authority unilaterally via decree.

    Putin has used decrees to wage wars, privatise the economy and even to amend the constitution to lay claim to the parts of Ukraine occupied by Russia since 2014.

    He has also used these decrees in a performative way, for example, by declaring pay raises for all Russian state employees without any ability to enforce it.

    Over the last month, Trump has made similar use of decrees (what the White House now terms “presidential actions”).

    He has issued scores of presidential decrees to unilaterally reshape vast swathes of American policy – far more than past presidents. Trump sees these orders as a way of both exercising and demonstrating his vast presidential power.

    Control over the bureaucracy

    Second, like a king, Putin does not allow the Russian legislature to use the law to organise the executive branch and create agencies independent of presidential control. Instead, he has unquestioned dominance over both the organisation and staffing of the executive branch. This has given him vast power to dominate politics by controlling information gathering and legal prosecutions.

    A similar push is underway in the United States. Trump has appointed key loyalists to head the Department of Justice and Federal Bureau of Investigation.

    Moreover, he is seeking to restructure the executive branch by abolishing some agencies altogether and vastly reducing the size of the workforce in others.

    Can the courts stop Trump?

    Trump’s attempt to Russify the American presidency undermines the American constitutional order.

    Courts are the natural “first responders” in this kind of crisis. And many courts have blocked some of Trump’s early decrees.

    This legal response is important. But it is not enough on it own.

    First, the US Supreme Court might be more willing to accept this expansion of presidential power than lower courts. In a ruling last year, for example, the court granted the president immunity from criminal prosecution, showing itself to be sympathetic to broad understandings of executive power.

    Second, presidential decrees can be easily withdrawn and modified. This can allow Trump and his legal team to recalibrate as his decrees are challenged and find the best test cases to take to the Supreme Court.

    Third, parts of the conservative right have long argued for a far more powerful president. For instance, the idea of a “unitary executive” has been discussed in conservative circles for years. This essentially claims that the president should be able to direct and control the entire executive branch, from the bureaucracy to prosecutors to the FBI.

    These arguments are already being made to justify Trump’s actions. As Elon Musk has said, “you could not ask for a stronger mandate from the public” to reform the executive branch. These arguments will be made to courts to justify Trump’s expansion of power.

    Fourth, even if the Supreme Court does block some decrees, it is possible the White House will simply ignore these actions. We had an early glimpse of this when Trump posted that “He who saves his Country does not violate any Law”.

    Vice President JD Vance has also said judges “aren’t allowed” to block the president’s “legitimate power”.

    The importance of political mobilisation and messaging

    Trump’s aggressive use of presidential power is not just a constitutional crisis, it is a political one. For those seeking to resist, this is too important to just be left to the courts; it must also involve America’s key political institutions.

    The most obvious place to start is in Congress. Lawmakers must act decisively to assert the legal power granted to them in the constitution to check the power of the presidency. This would include active Congressional use of its budgeting power, as well as its oversight powers on the presidency.

    This could happen now if a few Republicans were to take a principled position on important constitutional issues, though nearly all have so far preferred to fall in line. Democrats could retake both branches of Congress in the midterm elections in 2026, though, and assert this power.

    The states can and should also act to resist this expansion of presidential power. This action could take many forms, including refusing to deploy their traditional police powers to enforce decrees they view to be unconstitutional or unlawful.

    In mobilising to defend the constitution, these institutions could appeal to the American people with more than the narrow legal argument that Trump’s acts are unconstitutional. They could also make the broader political argument that turning the American president into a Russian-style, elected king will foster a form of inefficient, unresponsive and corrupt politics.

    Or, in the words of The New York Times columnist Ezra Klein, “it’s the corruption, stupid”.

    Time is of the essence. Russia shows the more time a “crown-president” is able to operate, the more entrenched this system becomes. For those hoping to preserve American democracy, the time is now for not just legal, but political resistance.

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

    ref. Trump is ruling like a ‘king’, following the Putin model. How can he be stopped? – https://theconversation.com/trump-is-ruling-like-a-king-following-the-putin-model-how-can-he-be-stopped-249721

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI USA: Cornyn Votes to Confirm Kash Patel for FBI Director

    US Senate News:

    Source: United States Senator for Texas John Cornyn

    WASHINGTON – U.S. Senator John Cornyn (R-TX) released the following statement after Kash Patel was confirmed as Director of the Federal Bureau of Investigation (FBI):

    “Kash Patel is a patriot who exemplifies the American dream. He understands that the rule of law is what makes America an exceptional nation, which is a stark contrast from what we saw over the last four years under Joe Biden. I’m confident he will reestablish trust in the bureau as FBI Director, and I was proud to support his nomination.”

    MIL OSI USA News

  • MIL-OSI USA News: Press Briefing by Press Secretary Karoline Leavitt, Deputy Chief of Staff Stephen Miller, National Economic Council Director Kevin Hassett, and National Security Advisor Mike Waltz

    Source: The White House

    class=”has-text-align-left”>
    1:05 P.M. EST
     
         MS. LEAVITT:  Hello.  Good afternoon, everybody.  I brought some heavy hitters in here with me today. 
     
    Today marks one month of President Trump’s return to the Oval Office, and there is no denying this administration is off to a historic start.  The President has already signed 73 executive orders.  That is more than double the number signed by Joe Biden and more than quadruple the number signed by Barack Obama over the same period.
     
    These executive orders have ended burdensome regulations; sealed the border; unleashed our domestic energy sector; eliminated divisive DEI from our federal government; stopped the weaponization of government; cut waste, fraud, and abuse; reinstituted “America First” trade and foreign policies; and ultimately restored common sense. 
     
    The President also signed the Laken Riley Act into law, which ensures ICE will detain illegal aliens arrested or charged with theft or violence. 
     
    As of today, the Senate has already confirmed 18 Cabinet-level nominees, which is more than at this point under the Obama administration in 2009 and more than double the pace of the Biden administration in 2021. 
     
    And today, we expect Kash Patel to be confirmed as the next director of the FBI. 
     
    We are proud to announce that the president will host his first official Cabinet meeting here at the White House next Wednesday, February 26th. 
     
    In just four weeks, President Trump has already hosted the leaders of Israel, Japan, Jordan, and India.  And next Monday, the President will host France’s President, Emmanuel Macron, and on Thursday, the UK Prime Minister, Keir Starmer, will visit the White House as well. 
     
    As you all know, over the past month, the President has taken questions from the press — all of you — nearly every single day, sometimes on multiple different occasions in the same day, on any topic any of you wish to talk about. 
     
    President Trump set the tone on this approach immediately when he took more than 12 times the questions in his first few hours in office as Joe Biden did in his entire first week. 
     
    Yesterday, we hosted a local media row here at the White House with television and radio stations from across the country that reached up to 60 million viewers and listeners. 
     
    In our ongoing pursuit of transparency, on this one-month celebration, I am thrilled to bring three of my colleagues and our policy experts here at the White House to further recap this incredible first month of accomplishments in greater detail.
     
    We have Deputy Chief of Staff for Policy and Homeland Security Advisor Stephen Miller; the Director of the National Economic Council, Kevin Hassett; and our National Security Advisor, Mike Waltz. 
     
    I will hand it over to them.  They will deliver brief remarks on the accomplishments of this administration in the first month, and then we will open it up to Q and A.  When we open up the Q and A portion, I do ask, for the sake of efficiency in this room, that you direct your question to the principal you seek an answer from.  And I will call on you in this room.
     
    But first I will let them roll through their remarks.  And first up, I’ll turn it over to Stephen Miller.
     
    MR. MILLER:  Thank you.  It’s great to be back.
     
    And I want to just thank you all for joining today our one-month celebration of the most historic opening to a presidency in American history.  No president comes close to what Donald Trump has achieved over just the last 30 days.
     
    He has packed eight years of transformative action restoring this nation, restoring our laws, restoring fairness, restoring economic opportunity, restoring national security in just one month.  No one in this country has ever seen anything like it. 
     
    And when you look at the consequentiality and the significance and the transformative nature of the actions he’s taking, it truly defies description.  For example, in just one area, this nation has been plagued and crippled by illegal discrimination: diversity, equity, and inclusion policies.  It strangled our economy.  It has undermined public safety.  It has made every aspect of life more difficult, more painful, and less safe. 
     
    He has ended all DEI across the federal government.  He has terminated all federal workers involved in promulgating these unlawful policies.  He has ended diversity, equity, and inclusion in all federal contracting.  He has restored merit as the cornerstone of all federal policy; restored the full, fair, impartial enforcement of our federal civil rights laws for the first time in generations; and he has cracked down on individuals across this government and nonprofits who have engaged in illegal racial discrimination against the American people. 
     
    This includes making clear to every educational institution in this country that ending diversity, equity, and inclusion, ending unlawful race discrimination is a precondition of receiving federal funds. 
     
    He has also saved women’s sports by ending the participation of men in women’s sports.  He has ended radical gender ideology across the entire federal government, and he’s pressured the private sector to also end and combat radical gender ideology.  He’s reestablished the scientific and biological truth that there are only two sexes in this country — male and female — that those are biologically based determinations.  They are not based and can never be based on gender identity. 
     
    That includes rooting out of the Department of Defense all DEI policies, all critical race theory, all gender madness, and once again having a military that is focused solely and exclusively on readiness, preparedness, and lethality.
     
    As I’m sure Kevin will talk about more, of course, he has undertaken a historic cost-cutting effort across the federal government, launching the first-ever Department of Government Efficiency, uncovering corruption on a scale that we never thought imaginable, terminating every single federal worker that we — that we have found to be engaged in the corruption and theft and the waste of taxpayer dollars, and already saving $50 billion in a single year, which over a 10-year period would be $500 billion.  Just think about how vast and enormous that sum is. 
     
    Of course, as you all know, he has renamed the Gulf of Mexico to its correct and proper name: the Gulf of America.  He has renamed Mount Denali into Mount McKinley, part of a historic effort to restore patriotism and national pride all across this land. 
     
    He has ended the weaponization of the federal government, restored the Department of Justice to its true mission of combating threats to this nation and keeping the American people safe. 
     
    He has ended all federal censorship of free speech.  This has been one of the greatest crises that has plagued this nation.  Years and years and years, the federal government violating the First Amendment to take away Americans’ right of free speech — President Trump has ended that.  And he has demanded that all federal workers, all law enforcement cease any effort to intimidate the rights of Americans or to police their speech. 
     
    He has also restored the death penalty at the Department of Justice, including for illegal aliens who commit murder, including for those who murder cops, and including for all of those who threaten Americans with heinous acts of violence.  The death penalty is back.  Law and order is back.  The streets are being made safe once again. 
     
    On the public health front, he has launched the nation’s first-ever commission — the MAHA Commission — Make America Healthy Again, following the historic confirmation of RFK Jr., to finally uncover the true root causes of the public health crisis in this country, the childhood disease epidemic in this country, the spiraling rates of pediatric cancer and devastating childhood sickness. 
     
    He has finally created a situation where the federal heal- — health agencies in this country will be focused on preventing disease, on keeping children from getting sick in the first place, not sentencing them to a lifetime in and out of hospitals, suffering needlessly, when we can find ways to prevent this epidemic of illness. 
     
    Then, of course, on homeland security.  Today, it is officially the law of the land at the conclusion of the congressional notification process that six Mexican cartels and two transnational gangs — Tren de Aragua, or TDA, and MS-13 — so eight organizations in total — are now formally designated as foreign terrorist organizations, which means that every single member of those organizations who operates on U.S. soil is now, as a legal matter, a terrorist, and they will be treated as terrorists. 
     
    This is a sea change in U.S. policy.  And this means the Department of Justice and the Department of Homeland Security, along with the rest of U.S. law enforcement and the Department of Defense, are now operating in a legal reality where these cartels are recognized as terrorists, and there will be a whole-of-government effort to remove these terrorists from our soil and to degrade their ability to threaten or undermine any American security or sovereignty interests.
     
    Border crossings since the day he took office are down 95 percent.  I think it’s almost impossible to even describe the scale and scope of that achievement.  President Trump, within days of taking office, cut border crossings 95 percent. 
     
    And those few who have dared to cross are being either prosecuted or deported.  They’re either facing significant jail time for trafficking, smuggling, harboring, aiding, impeding, or they’re being immediately removed from our soil.  Either way, at the end of the process, they are going home. 
     
    He has reimplemented Remain in Mexico, and he has obtained historic cooperation from foreign countries all around the world in accepting their deportees back. 
     
    And he has used the United States military to fully seal the southern border with a historic deployment of both active duty and National Guard troops, resumed the building of infrastructure.  He has opened up Guantanamo Bay, and he’s using military aircraft to carry out deportations all across this country. 
     
    And ICE is joining with ATF, DEA, and FBI to carry out the largest deportation operation in American history.  The criminals are going home.  The border is sealed shut.  America is safe, sovereign, proud, and free.  We are a nation that everyone in the world understands all across this planet: You do not come here illegally.  You will not get in.  You will go to jail.  You will go home.  You will not succeed. 
     
    This is the biggest and most successful change in any area of law enforcement that this nation has ever seen, and he did it in under one month. 
     
    Thank you.
     
    MR. HASSETT:  Should I go?
     
    MS. LEAVITT:  Yes, yes.
     
    MR. HASSETT:  Well, thank you, Karoline.  Thank you, Stephen. 
     
    You know, one of the things that President Trump cares most about is job creation.  And it was about seven years ago I had the honor of joining you in this room for the first time, and it looks like we’ve created a lot more jobs in the last month.  Look at how many people are here.  I — my estimate is about 180 but — but I didn’t count. 
     
    So, thank you.  It’s really an honor to be back here.  I think that I just want to go over a few things and then hand it off to Mike. 
     
    The first thing is that the President has told us to prioritize fighting inflation, and he had to do that because, as you know, President Biden let inflation get completely out of control.  And he did it with policies that made no sense.  They made no sense. 
     
    You know, a lot of times, you people say to us — our friends, the journalists — you know, “Why are you doing that?”  But — but, you know, I like to think, “Why did they do that?  Why did they spend so much money and then — why did the Fed print so much money so that we had inflation as high as we’ve ever seen since Jimmy Carter?  So, why did they do that?”
     
    So, we’re addressing inflation.  We didn’t have to address it in the first term, because it was always in the 1s, almost always.  But we’re going to get it back there. 
     
    And how are we doing it?  Well, we’re doing it with a plan that President Trump and I and others have talked about in the Oval that involves, like, every level of fighting inflation. 
     
    First, the macroeconomic level.  We’re cutting spending.  We’re cutting spending in negotiations with people on the Hill.  We’re cutting spending with the advice of our IT consultant, Elon Musk.  And then we’re also looking into supply-side things, like restoring Trump’s tax cuts, maybe even expensing new factories so that there is an explosion of supply.  If you have an explosion of supply and a reduction in government demand, then inflation goes way down. 
     
    And then, one of the things that you want to say is “Well, when are you going to see it?”  Well, the first thing that you’ll see when the markets believe that we’re going to get inflation under control is that the 10-year Treasury rate goes down, because that’s how they think about future expected inflation. 
     
    And so, we’re still going to see some memory of Biden’s inflation.  It’s not going to go away in a month.  But the 10-year Treasury before the last Consumer Price Index had dropped about 40 basis points.  Forty basis points because markets were optimistic about our ability to fight inflation. 
     
    Forty basis points is kind of not a fun thing to say.  I — economists talk that way.  I apologize.  But the way to think about it is, for a typical mortgage, if that affects the mortgage rate, then it’s going to save a typical family buying a house about a thousand bucks a year, and that’s just in our first month. 
     
    Okay.  The second thing we’ve done is we’ve had a lot of trade talks.  In fact, I was just meeting a minister from Mexico with Howard Lutnick just a couple of hours ago.  And we’re talking about reciprocal trade, and we’re also talking about the fentanyl crisis. 
     
    And so, reciprocal trade is about our government treating other governments the way they treat us.  We want trade to be fair.  It turns out that Americans have been disadvantaged by foreign governments over and over, and President Trump wants it to stop.  And the fact that struck me as most noticeable, when I started to look at what President Trump was asking us to do, is that last year — last year — we have data — U.S. companies paid $370 billion in taxes to foreign governments — $370 billion.  Last year, foreign multinationals paid us $57 billion in taxes. 
     
    We have one quarter of world GDP.  They have three quarters of world GDP.  And we’re paying $370.  They’re paying $57.  This is not reciprocal.  We’re going to try — or we’re going to fix it. 
     
    The other thing that we’ve done is we’ve had an all-of-the-above energy approach that’s led by Doug Burgum and Chris and a really large team — EPA — and we’ve already made so many actions that are going to affect the price of energy and lower inflation. 
     
    We’ve opened up 625 million acres to energy exploration.  We’ve cut 50 years of red tape that makes it so you can’t have permits.  And we’ve even made it so that when you go home, if you get a new one, then you can take a shower or flush a toilet or read under a light bulb.  We’re doing that too. 
     
    So — so, finally, let’s just think about, like, the facts that we can see right now that we think are awesome.  So, guess what?  Small-business optimism is — has go- — gone up by the most ever since President Trump came in.  ISM, which is the measure of what’s going on in manufacturing, it’s expanding again for the first time in years.  CEO confidence is the highest it’s been in years.  And the reason — the reason people are thinking this is that our policies give people cause for optimism. 
     
    And then I want to reiterate what Stephen Miller said, because it’s so important — and it’s so important for financial markets to start to digest this — that if, say, the Treasury secretary or the — any Cabinet secretary, with Elon Musk, is able to find some savings — say, $100 billion — well, in CBO land, that’s actually, like, about 10 times that or maybe 12 times that over a 10-year window. 
     
    And so, when you’re thinking about the negotiations right now over reconciliation and thinking about, well, $4 trillion, $5 trillion, well, those numbers, in terms of the savings, are going to end up being small because of all the waste that we’re finding. 
     
    And so, we’re incredibly optimistic about the future of inflation and the future of our economy.  And we’re optimistic because we’re making so much progress so far, and we already see it in market prices. 
     
    And, with that, I’ll hand it off to Mike. 
     
    MR. WALTZ:  All right.  Thanks, Kevin. 
     
    Well, good afternoon.  What a month and what a sea change in our — in our foreign policy.  In addition to what we’re doing on the border and restoring American sovereignty, in addition to what we’re doing in our economy and the job creation and the inflation reduction, we are bringing the world back to where it was at the end of President Trump’s first term, which is a world of peace, prosperity, and — and looking forward and getting us out of the chaos that we’ve just seen over the last four years. 
     
    So, over the last month, just to name a few, I had the honor of sitting in the Oval Office as President Trump spoke with President Putin and then immediately spoke with President Zelenskyy, and both of them said only President Trump could bring both sides to the table, and only President Trump could stop the horrific fighting that has been going on now for the better part of four years and that only President Trump could drive the world back to peace.  Both of those leaders said that in back-to-back calls.
     
    And, of course, we just had our historic talks mediated by our — our good friends and partners, Saudi Arabia — we give great thanks to Crown Prince Mohammed bin Salman for hosting — and sat down for the first time in years with the Russians and talked about a path forward with peace.
     
    On top of that and one of the things that led to that was a tremendous co- — confidence-building measure that we had with the release of Marc Fogel.  I’ll remind everyone, the last time that we had an American released from the Russians, either we gave up a deadly spy; pressured our allies to give up a lethal killer; or we released, under the Biden administration, the world’s most notorious arms dealer, Viktor Bout, who, by the way, had one of his main clients for arms the cartels in — in Mexico and Central America. 
     
    We gave up none of that.  This was released as a confidence-building measure, working with our great Middle East Envoy, Steve Witkoff, and our secretary of State as a first step towards opening these talks and then moving forward towards peace. 
     
    On top of that, we’ve secured, just in a month, the return of a dozen — 12 — American hostages from Russia, from Bulgaria, from Venezuela, the Taliban, and Hamas.  Excuse me, that’s from Belarus, not Bulgaria. 
     
    We also had — for the first time in quite some time, we took out a senior leader of ISIS, an international financier and recruiter that the military had been trying to take out for quite some time and — and wasn’t able to do so, frankly, because of a bureaucratic approval process.  President Trump said, “Take him out.”  And that ISIS financier and leader is no longer on this Earth. 
     
    We’ve also taken action to eliminate other terrorist organizations in the Middle East.  We drove — before the President was even in office, he started talking consequences for people that would hold Americans. 
     
    Heretofore, there’s been nothing but upside.  You take an American, you get some better deal.  You take another one, maybe you get a better deal.  No more.  There is now nothing but downside for taking Americans illegally, either as hostages or illegal detainees. 
     
    And when President Trump sent a very clear message across the Middle East, but particularly to Hamas, that there would be all hell to pay, we suddenly saw a breakthrough.  And now we just saw the release of yet another group of hostages.  There have been dozens now, including two Americans that we’ve seen once again reunited with their families. 
     
    As part of the talks with King Abdullah, he offered — and — and I think the entire world has graciously accepted — to take 2,000 sick children, cancer patients, and others out of Gaza.  As a humanitarian — as a humanitarian gesture, 2,000 Gazans will come out of that hellhole that it is, that wasteland that Gaza is right now, with unexploded ordnance, with debris everywhere, with no sewage, with no water.  And — and President Trump has — has put forward a plan to deal with the practical reality that is 1.8 million Gazans now — now truly suffering.
     
    And then, you know, just to bring it back to our own hemisphere, we’ve seen literally, in the last month — after years of national security experts, the generals in charge, and others testifying and ringing the alarm bells about — about the Chinese Communist Party’s presence in our own hemisphere, particularly in the Panama Canal, we’re seeing the leadership of Panama step away from the Belt and Road program, move away from China and back towards the United States, and even enter into talks and — and other negotiations about addressing the ports on either side of the canal. 
     
    And then, finally, last but not least, we’ve had four world leaders in the White House, in the Oval Office.  We’ve had the prime minister of Japan, the prime minister of India, the king of — of Jordan, and, of course, the prime minister of Israel just in the last four weeks.  And next week, we’ll have the Prime Minister of the United Kingdom and we’ll have the president of France, Macron. 
     
    So, President Trump is on what we call Trump warp speed.  We are all — we are all honored to be really serving under — under his leadership and his vision.  And truly, you know, when we all say — and the President himself say — says, he is a president of peace.  He is a president focused on restoring stability.  I think the entire world saw what the world would look like without strong American leadership in the last four years.
     
    And it’s truly been an honor to get us back to where we were and back on track under President Trump’s leadership. 
     
    MS. LEAVITT:  Thank you, Mike. 
     
    MR. WALTZ:  Mm-hmm.
     
    MS. LEAVITT:  Thank you.  Thank you, everybody.  I’m sure you’re very eager to ask questions of these very smart people working very hard on behalf of the president. 
     
    We do have somebody in our new media seat today.  We have John Stoll, who is the head of news at X.  As you all know — you’re all on X — it’s home to hundreds of millions of users, a large contingent of independent journalists and news organizations across geographies and political spectrums.  And at the same time, X remains the go-to platform for many legacy news outlets.  And I know, as I mentioned, many of the reporters in this room use X to attract eyeballs to your work. 
     
    Prior to joining X, John spent two decades in journalism, including several years as an editor at The Wall Street Journal.  We are excited to have him in the briefing room today.
     
    John, we’ll let you kick it off.  And as I said at the top, please direct your question to the individual up here who you’d like an answer from. 
     
    John, why don’t you begin.
     
    Q    All right.  Thank you very much.  I am sitting in for a thriving ecosystem of journalists, independent and — and emerging news organizations who do depend on X for publicity, for a business model.  And so, I look forward to seeing many of them in this seat in months and years to come. 
     
    I also thank you, Karoline, for opening this seat up to new media.  It — it really is a testament not only to your open-mindedness but also to innovation that you’d actually think about, you know, folks that are not traditionally credentialed to be in this room to be in this room and to not only have a question but also to witness — you know, this is at a very important intersection of power and the free press.
     
    And so, just the ability to witness this and — and be part of it, it brings everybody’s game up.  So, thank you for that. 
     
    I think this is for Mike Waltz.  My question is about Ukraine.
     
    MR. WALTZ:  Sure.
     
    Q    For about more than 10 years, I’ve been fascinated, like all — like many, with what’s going on.  I was in Northern Europe working out of the Baltics when Crimea was annexed and was — a lot — a lot of this came on Twitter.  The platform used to be known as Twitter.  Was — a lot of European leaders would — would talk about their disappointment and — and solidarity with Ukraine, but when it came to actually doing something, it felt like they were passing a hot potato and sent it over the Atlantic. 
     
    I wonder how much of what we’re seeing right now out of the administration and President Trump is a call to Europe and the European leaders and allies that we’ve traditionally had to pick up that hot potato and — and start doing something a little bit more concrete to win and preserve the peace in Ukraine. 
     
    The second question I have is — it — it’s related — is there’s been some — a lot of speculation that President Trump and the administration might be manipulated by Pre- — by Vladimir Putin.  I wonder if you can just talk a little bit about the administration’s posture —
     
    MR. WALTZ:  Yeah.
     
    Q    — and your confidence in the competence of this administration to d- — go toe to toe with Vladimir Putin. 
     
    MR. WALTZ:  Well, if there’s an- — I’ll take the l- — second question first.  If there’s anybody in this world that can go toe to toe with Putin, that could go toe to toe with Xi, that could go toe to toe with Kim Jong Un — and we could keep going down the list — it’s Donald J. Trump.  He is the dealmaker in chief.  There is no question that he is the commander in chief. 
     
    And I, for one — and I think all Americans and around the world should have no doubt about his ability to not only handle Putin but to handle the complexity of driving this war to an end. 
     
    And then on your first piece on Europe, I’ll take you back to 2014.  You’re right.  There was a lot of hand-wringing in Europe and not a lot of action.  There was also a lot of hand-wringing here in Washington under the Obama administration and not a lot of action.  They literally threw blankets at the problem. 
     
    And so, I’ll remind everyone that Putin had, you know, some type of conflict, invasion, or issue with their neighbor under President Bush, with Georgia; under President Obama, with Ukraine in 2014; not under President Trump, 45; and again with President Biden in 2022.  The war should have been deterred.  The war should have never happened, and I have no doubt it would not have happened under President Trump and will stop under President — President Trump again. 
     
    But I just want to push back on this notion of our European allies not being consulted as we’ve entered into this process.  I already mentioned the immediate phone call President Trump made to President Zelenskyy.  He has talked to President Macron of France repeatedly last week.  President Macron convened European leaders and then is coming here on Monday.  Prime Minister Starmer is coming next Thursday. 
     
    We’ve also — I’ve talked to every one of my national security — national security advisor counterparts across — across the spectrum in Europe.  I’ve talked to Secretary-General Rutte, the — the leader of NATO, the secretary-general of NATO.  We have repeatedly — oh, by the way, we had half our Cabinet — seven Cabinet officials, including the vice president, at the Munich Security Conference, all engaging, all listening, and all making sure our allies were heard. 
     
    However, we’ve also made it clear for years — decades, even — that it is unacceptable that the United States and the United States taxpayer continues to bear the burden not only of the cost of the war in Ukraine but of the defense of — of Europe.  We fully support our NATO Allies.  We fully support the Article 5 commitment.  But it’s time for our European allies to step up. 
     
    And one of the things that Secretary-General Rutte said on our call was this last couple of weeks have been a real wake-up call.  And I asked him, “What have you been missing the last couple of years?” 
     
    The fact that we are going to enter into a NATO summit this June with a third of our NATO Allies still not meeting the 2 percent minimum, a commitment they made a decade ago — literally a decade ago — with a war on their doorstep — the largest war that they’re all extremely concerned about — but yet it’s “Well, somebody else needs to pay.  We’ve got other domestic priorities.”  It’s unacceptable.  President Trump has made that clear. 
     
    And the minimum needs to be met.  We need to be at 100 percent in — this June at the NATO summit.  And then let’s talk about exceeding it, which what — is what President Trump has been talking about, with 5 percent of GDP. 
     
    Europe needs to step up for their own defense as a partner.  And we can be friends and allies and have those tough conversations. 
     
    MS. LEAVITT:  Great.  Peter.
     
    Q    Thank you, Karoline.  I have a Ukraine one and a DOGE one.  Who can talk DOGE?
     
    MS. LEAVITT:  Stephen, go ahead.
     
    Q    Well, so — so, Stephen, we’re hearing about these DOGE dividend checks that would be 20 percent back to taxpayers, 20 percent to pay down the debt.  Sixty percent is left.  Who gets that?
     
    MR. MILLER:  Well, the way that it works is when you achieve savings, you can either return it to taxpayers, you can return it to our debtors, or it can be cycled into next year’s budget, and then it just lowers the overall baseline for next year.  So, in other words, you can just transfer it into the next fiscal window and then lower the overall spending level.  And that means that you can achieve a permanent savings that way, and that reduces the deficit. 
     
    Q    And when is it that people might see those checks?
     
    MR. MILLER:  Well, this is all going to be worked on through the reconciliation process with Congress that’s going underway right now, as you’ve seen.  The Senate is moving a bill.  The House is moving a bill.  The president has great confidence in both chambers to deliver on his priorities. 
     
    I would just take this opportunity to note that President Trump has made a historic commitment to the working class of this country to fight for a major tax relief and major price relief.  And cutting spending, as DOGE is doing, and cutting taxes is the key to delivering on both of those promises.  And President Trump is resolutely committed to doing both. 
     
    Q    Thank you.  And on Ukraine.  I guess, this is for Mike.
     
    MR. WALTZ:  Sure. 
     
    Q    After the president’s post on Truth Social yesterday, need to know: Who does he think is more responsible for the Russian invasion of Ukraine, Putin or Zelenskyy?
     
    MR. WALTZ:  Well, look, his — his goal, Peter, is to bring this war to an end, period.  And there has been ongoing fighting on both sides.  It is World War I-style trench warfare. 
     
    His frustration with President Zelenskyy is — that you’ve heard — is multifold.  One, there needs to be a deep appreciation for what the American people, what the American taxpayer, what President Trump did in — in his first term, and what we’ve done since.  So, some of the rhetoric coming out of Kyiv, frankly, and — and insults to President Trump were unacceptable.  Number one. 
     
    Number two, our own secretary of Treasury personally made the trip to offer the Ukrainians what is — can only be described as a historic opportunity — that is for America to coinvest with Ukraine in their minerals, in their resources, to truly grow the pie. 
     
    So, case in point, there’s a foundry that processes aluminum in Ukraine.  It’s — it’s been damaged.  It’s not at its current capacity.  If that is restored, it would account for America’s entire imports of aluminum for an entire year — that one foundry.
     
    There are tremendous resources there.  Not only is that long-term security for Ukraine, not only do we help them grow the pie with investments, but, you know, we do have an obligation to the American taxpayer in helping them recoup the hundreds of billions that ha- — that have occurred. 
     
    So, you know, rather than enter — enter into some constructive conversations about what that deal should be going forward, we got a lot of rhetoric in the media that was — that was incredibly unfortunate. 
     
    And I could just tell you, Peter, you know, as a veteran, as somebody who’s been in combat, this war is horrific.  And I think we’ve lost sight of that, of the literally thousands of people that are dying a day, families that are going without the next generation. 
     
    And I find it kind of, you know, frankly, ridiculous.  So many people in Washington that were just demanding, pounding the table for a ceasefire in Gaza are suddenly aghast that the president would demand one and both sides come to the table when it talks to — when it comes to Ukraine, a war that has been arguably far greater in — in scope and scale and far more dangerous in terms of global escalation to U.S. security.
     
    Q    And I do have one for Karoline.
     
    MS. LEAVITT:  Sure.
     
    Q    Does President Trump have a bet with Trudeau about this USA-Canada hockey game tonight?  (Laughter.)  And when there is a big hockey game on, is the president watching for the goals or for the fights?
     
    MS. LEAVITT:  (Laughs.)  Probably both.  I think he’s watching for the United States to win tonight.  I know he talked to the USA hockey team this morning.  He talked to the players after their morning practice, around 10 o’clock.  And I also spoke to some folks from that team after.  They were jubilant over President Trump’s comments to the team.  I believe they’re going to put out a video of that call. 
     
    So, he looks forward to watching the game tonight, and we look forward to the United States beating our soon-to-be 51st state, Canada.  (Laughter.)
     
    Bloomberg, go ahead. 
     
    Q    My question is for Mike Waltz.  Can you give us a readout of Kellogg’s meeting with Zelenskyy that just wrapped up?  And, in particular, Zelenskyy publicly rejected this deal about the rare earth minerals.  Where — where does that stand?
     
    MR. WALTZ:  Well, we’re going to continue to have — he needs to come back to the table, and we’re going to continue to have discussions about where that deal is going. 
     
    Again, we have an obligation to the taxpayer.  I think this is an opportunity.  The president thinks this is an opportunity for Ukraine going forward.  There can be, in my view, nothing better for Ukraine’s future and for their security than — than to have the United States invested in their prosperity long-term.  And then a key piece of this has also been security guarantees. 
     
    Look, the — the reality that we’re talking about here is: Is it in Ukraine’s interest?  Is it in Europe’s interest?  It certainly isn’t in Russia’s interest or in the American people’s interest for this war to grind on forever and ever and ever. 
     
    So, a key part of his conversation was helping President Zelenskyy understand this war needs to come to an end.  This kind of open-ended mantra that we’ve had under the Biden administration, that’s over.  And I think a lot of people are having a hard time accepting that.
     
    And then the other piece is there’s been discussions from Prime Minister Starmer and also President Macron about European-led security guarantees.  We welcome that.  We’ve been asking Europe to step up and secure its own prosperity, safety, and security.  So, we certainly welcome that. 
     
    And we certainly welcome more European assistance.  As I told my counterparts, “Come to the table with more, if — if you want a bigger seat at the table.”  And we’ve been asking for that for quite some time. 
     
    Q    And has Russia pushed for sanctions in your talks with them?  And have you consulted with international partners and allies about potentially rolling back sanctions in these negotiations to end the war?
     
    MR. WALTZ:  Those — the talks with — with our Russian counterparts — both with my counterpart, the national security advisor; Secretary Rubio’s counterpart, the Foreign Minister, Foreign Minister Lavrov — you know, it — it really were — was quite broad, focused on what is the goals for our broader relationship, but very clear that the fighting has to stop to get to any of those brighter goals. 
     
    And as a first step, we’re just going to do some commonsense things, like restore the — the ability of both of our embassies to function. 
     
    And, again, you know, this is — this was common sense.  In — in foreign policy world, they call it “shuttle diplomacy.”  We have to talk to both sides in order to get to both sides to the table, and both sides have said only President Trump could do that. 
     
    MS. LEAVITT:  Diana.
     
    Q    Thank you.  And my question is for Mike Waltz.  (Laughter.)
     
    MR. WALTZ:  All right.
     
    Q    The president has called Zelenskyy a dictator.  Does he view Putin as a dictator? 
     
    And does he want Zelenskyy out of power?  I know he’s called for elections. 
     
    And then, thirdly, the head of the Defense Committee in Ukraine’s parliament just has claimed that the U.S. has stopped selling weapons to Ukraine.  Is that true?
     
    MR. WALTZ:  Well, most of our weapons that have gone to Ukraine have been part of a drawdown authority, where we’ve literally taken them out of our stocks and then, eventually, through appropriations, started buying them again to refill our stocks. 
     
    I’ll, you know, just state that there has been a lag in a lot of that process.  So, many of our stocks, as we look at our operations around the world, are becoming more depleted.  That’s one of the reasons many people have had a lot of concern about: When does this end?  How much is it going to take?  How many lives will be lost?  How much will we be — how much will we spend? 
     
    As a member of Congress, we repeatedly asked the Biden administration those questions, and we never got a satisfactory answer. 
     
    Look, President Trump is obviously very frustrated right now with President Zelenskyy — the fact that — that he hasn’t come to the table, that he hasn’t been willing to take this opportunity that we have offered.  I think he eventually will get to that point, and I hope so very quickly.
     
    But President Trump is — as we made clear to our Russian counterparts, and I want to make clear today — he’s focused on stopping the fighting and moving forward.  And we could argue all day long about what’s happened in the past. 
     
    MS. LEAVITT:  Reagan.
     
    Q    Thanks.  I have a question for Stephen —
     
    (Cross-talk.)
     
    Q    — and a question for Mike.
     
    MS. LEAVITT:  Excuse me, I just called on Reagan.  Reagan, go ahead. 
     
    Q    I have a question for Stephen and a question for Mike. 
     
    MS. LEAVITT:  Sure.
     
    Q    Stephen, I can start with you.  There have been reports —
     
    MR. MILLER:  Thank you.
     
    Q    — that Trump is unhappy with the rate of deportations and he wants them to be higher.  Is the president happy with the rate of deportations, and are there any plans to speed up the process?
     
    MR. MILLER:  Well, first of all, we all appreciate the encouragement from the media to deport as many illegal aliens as humanly possible.  So, thank you. 
     
    And I will promise you that the full might of the Department of Homeland Security, the Department of Justice, the Department of Defense, and every element and instrument of national power will be used to remove, with speed, all criminal illegals from the soil of the United States of America, to enforce final removal orders, and to ensure that this country is for American citizens and those who legally belong in this country.
     
    We inherited an ICE that was completely shuttered.  We inherited a Department of Homeland Security whose sole mission was to resettle illegal aliens within the United States of America. 
     
    In 30 days, the president sealed the border shut, declared the cartels to be terrorist organizations, has increased ICE deportations to levels not seen in decades, and we are shortly on the verge of achieving a pace and speed of deportations this country has never before seen. 
     
    Thank you. 
     
    Q    And Mike.
     
    MR. WALTZ:  Mm-hmm.
     
    Q    There have been reports that there’s some underground opposition to Trump’s pick for Undersecretary of Defense for Policy, Elbridge Colby.  Have you or anyone from the administration been personally lobbying senators to support Elbridge Colby? 
     
    MR. WALTZ:  Look, I’ve worked with Bridge Co- — Colby in the past.  He has the president’s full support to be the Undersecretary of policy, which will be a critical policy arm for Secretary Hegseth going forward that will implement a lot of these policies. 
     
    And — and really, that’s — that’s been the extent of it.  I think there’s been a lot of kind of, you know, breathless — I don’t know — back-and-forth in the — in the press, but we’re full speed ahead to get the president’s team in place so we can implement his America First policy. 
     
    MS. LEAVITT:  Thank you.  Mike has spoken pretty extensively.  Does anybody have questions for Stephen or for Mr. Hassett?
     
    Q    I do.
     
    MS. LEAVITT:  Nobody wants to talk about the economy?  (Laughter.)
     
    (Cross-talk.)
     
    MS. LEAVITT:  Sure. 
     
    Q    IRS.
     
    MS. LEAVITT:  IRS.  Okay.  Go ahead.
     
    Q    And this would be for either one of you.  So, we have reported, several other outlets have reported that about 3,500 people are due to be — lose their jobs at the IRS by the end of the week.  If the goal of these spending cuts across the federal government has been to reduce the debt, why impose some of the deepest cuts we’ve seen so far at the agency responsible for raising revenue for the federal government?
     
    MR. HASSETT:  Well, I think our objective is to make sure that the employees that we pay are being productive and effective.  And there are many, many — more than 100,000 people working to collect taxes, and not all of them are fully occupied.  And the Treasury secretary is studying the matter and feels like 3,500 is a small number and probably can get bigger, especially as we improve the IT at the IRS.
     
    And so — so, I think that it’s absolutely something that is on the table for good reasons.  And the point is that — don’t just talk about the IRS.  Talk about all of government, that there are so many places — I live in D.C.; you maybe live in D.C. — where you never — there — nobody — nobody is going into the buildings.  People aren’t commuting because nobody is doing their job.  We look back and we see that there are all these people doing two jobs while they’re getting a government payroll — on the payroll. 
     
    So, the point is, we’re fixing that, and the IRS is a small part of that picture. 
     
    Q    So, you’re saying that everybody who’s being let go was doing a bad job?
    MR. HASSETT:  I’m saying that we’re studying every agency and deciding who to let go and why, and we’re doing so very rationally with a lot of support from analysis. 
     
    Q    Because we’re being told by a lot of people who have been let go at other agencies that they were told they were being dismissed because of poor performance, when, in some cases, they haven’t even had a performance review yet because they’ve only been on the job a couple of months. 
     
    MR. HASSETT:  Yeah, I’ve never seen a person who was laid off for poor performance say that they were performing poorly.  (Laughter.)  Okay?
    Q    Karoline.
     
    MS. LEAVITT:  Good point.  Sure, Kaitlan.
     
    Q    I have a question.  I’ll start with you, Kevin Hassett.  Thank you for being here.  And then I’ve got a question for Mr. Waltz.
     
    On these potential checks that you might send out from DOGE, is there a concern, as you’re thinking through this, that they could be inflationary?
     
    MR. HASSETT:  Oh, absolutely not, because imagine if we don’t spend government money and we give it back to people, then the — you know, if they spend it all, then you’re even.  But they’re probably going to save a lot of it, in which case, you’re reducing inflation. 
     
    Q    Okay.  So, you’re not —
     
    MR. HASSETT:  And also, when the government spends a lot, that’s what creates inflation.  We learned that from Joe Biden.  And so, if we reduce government spending, then that’s — you know, reduces inflation.  And if you give people money, then they’re going to save a bunch of it.  And — and when they save it, then that also reduces demand and reduces inflation. 
     
    Q    Okay.  So, you’re not worried about it. 
     
    MR. HASSETT:  No, I’m not.
     
    Q    And, Mr. Waltz, to follow up on Peter’s question, you wrote in an op-ed in the fall of 2023 that, quote, “Putin is to blame, certainly, like al Qaeda was to blame for 9/11.”
     
    MR. WALTZ:  Mm-hmm.
     
    Q    Do you still feel that way now, or do you share the president’s assessment, as he says Ukraine is to blame for the start of this war?
     
    MR. WALTZ:  Well, it shouldn’t surprise you that I share the president’s assessment on all kinds of issues.  What I wrote as a Member of Congress is — was as a former Member of Congress. 
     
    Look, what I share the president’s assessment on is that the war has to end.  And what comes with that?  What comes with that should be, at some point, elections.  What comes with that should be peace.  What comes with that is prosperity that we’ve just offered in this natural resources and economic partnership arrangement: an end to the killing and European security and security for the world.  The President is not only determined to do that in Europe, he’s determined to do it in the Middle East. 
     
    And just a few months ago, we had an administration that had tried for 15 months, week after week, sitting with you here, and couldn’t get us to a ceasefire, couldn’t get our hostages out.  Now we’re at that point.  We’re back to the maximum pressure on Iran.
     
    And we will — we have just begun, and we will drive towards a ceasefire and all of those other steps.  I’m not going to pre-negotiate or get ahead of the sequencing of all of that.  It’s a very delicate situation. 
     
    But this is a president of peace.  And who here would argue against peace?
     
    Q    Okay.  So, you do share that assessment. 
     
    And can I follow up.  In 2017 —
     
    MS. LEAVITT:  No.  Go ahead, Jordan.
     
    Q    — then-President Trump —
     
    MS. LEAVITT:  Go ahead, Jordan. 
     
    Q    Can I just follow up really quickly?
     
    Q    Thank you.  So —
     
    MS. LEAVITT:  You just had two questions, Kaitlan.
     
    Q    May I — can I just —
     
    MS. LEAVITT:  Jordan, go ahead. 
     
    Q    Mr. — Mr. Hassett —
     
    MS. LEAVITT:  Thank you.
     
    Q    I have an important follow-up for Mike Waltz.
     
    MS. LEAVITT:  Jordan, go ahead.  Go ahead.
     
    Q    So, Mr. Hassett, you were speaking about tariff revenue, and you also addressed a question about the R- — IRS.  President Trump has spoken about replacing income tax with tariff revenue, especially with all this waste, fraud, and abuse that we’re seeing cut.  Is that a possibility?
     
    MR. HASSETT:  Absolutely.  And, in fact, if you think about the China tariff revenue that we’re estimating is coming in from the 10 percent that we just added, plus the de minimis thing, that it’s between $500 billion and a trillion dollars over 10 years, is our estimate.  And that’s something that is outside of the reductions that markets are seeing through the negotiations up on the Hill.
     
    And so, we expect that the tariff revenue is actually going to make it much easier for Republicans to pass a bill, and that was the President’s plan all along. 
     
    Thank you.
     
    Q    And I — I have a question for Stephen Miller about DOGE.  So, you — you spoke about DOGE.  You said roughly $50 billion is set to be cut in a year of waste, fraud, and abuse by unelected bureaucrats.  We’re hearing this ironic narrative from the President’s critics and the left-wing media that Elon Musk is an unelected bureaucrat, and he’s doing all this terrible stuff.  Isn’t one of DOGE’s objectives to get — get rid of the federal bureaucracy, the — the deep state?  And also, who was running the White House when Joe Biden was in office —
     
    MR. MILLER:  (Laughs.)
     
    Q    — because I don’t know a single person who believes it was Joe Biden? 
     
    MR. MILLER:  Yes.  You’re — you’re tempting me to say — (laughs) — some very harsh things about some of our media friends.  The — yes, it is true that many of the people in this room, for four years, failed to cover the fact that Joe Biden was mentally incompetent and was not running the country. 
     
    It is also true that many people in this room who have used this talking point that Elon is not elected fail to understand how government works.  So, I’m glad for the opportunity for a brief civics lesson. 
     
    A president is elected by the whole American people.  He’s the only official in the entire government that is elected by the entire nation.  Right?  Judges are appointed.  Members of Congress are elected at the district or state level.  Just one man. 
     
    And the Constitution, Article Two, has a clause, known as the vesting clause, and it says, “The executive power shall be vested in a president,” singular.  The whole will of democracy is imbued into the elected president.  That president then appoints staff to then impose that democratic will onto the government. 
     
    The threat to democracy — indeed, the existential threat to democracy — is the unelected bureaucracy of lifetime, tenured civil servants who believe they answer to no one, who believe they can do whatever they want without consequence, who believe they can set their own agenda no matter what Americans vote for. 
     
    So, Americans vote for radical FBI reform, and FBI agents say they don’t want to change.  Or Americans vote for radical reform in our energy policies, but EPA bureaucrats say they don’t want to change.  Or Americans vote to end DEI — racist DEI policies, and lawyers in the Department of Justice say they don’t want to change. 
     
    What President Trump is doing is he is removing federal bureaucrats who are defying democracy by failing to implement his lawful orders, which are the will of the whole American people. 
     
    Thank you. 
     
    Q    Thanks, Stephen.  Can I follow up?
     
    Q    Karoline.
     
    MS. LEAVITT:  Thank you very much, everybody.  I’m looking at the clock.  We’ve almost had an hour of time. 
     
    (Cross-talk.)

    LEAVITT:  I know a couple of these individuals have a meeting to get to at 2:00 p.m.  So, you’re welcome to follow up with my team for further questions.  We’re going to let these guys get back to running the United States government.
     
    And we will see you all later.  President Trump will be speaking at 3 o’clock at the Black History Month reception.
     
    So, thank you.  It’s good to see you.  We’ll see you in a bit.  Thanks.
     
    Q    Are you going to the Black History Month reception, Mr. Miller?
     
    Q    Stephen, on the fraud.  Should we expect indictments?
     
    Q    What is your reaction to Mitch McConnell’s retirement?
     
    Q    Are there indictments coming for all the fraud we’ve found?
     
         MR. MILLER:  I’d love to follow up with you.  Just set up a time with Karoline.
     
         Q    Okay.  Thank you. 
     
    END                   1:56 P.M. EST

    MIL OSI USA News

  • MIL-OSI USA: Grassley Welcomes Senate Confirmation of Kash Patel as FBI Director

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) released a statement following the Senate’s confirmation of Kash Patel to be Director of the Federal Bureau of Investigation (FBI).

    “Change is coming to the seventh floor of the J. Edgar Hoover Building, and that is a good thing. Over the past several years, political infection has diminished the FBI’s credibility and distracted the Bureau from its core law enforcement responsibilities. As FBI Director, Kash Patel promises to restore the FBI’s primary focus on law and order, as well as national security, and do right by the brave FBI agents who work day in and day out to keep Americans safe. From a congressional oversight standpoint, you can bet I’ll be keeping a close watch to ensure Congress gets answers to our questions and transparency assured.”

    -30-

    MIL OSI USA News

  • MIL-OSI USA: Durbin Files Amendments To Republicans’ Budget Bill

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    February 20, 2025

    WASHINGTON – Ahead of tonight’s vote-a-rama, where Senate Democrats will expose the truth about Republicans’ reconciliation budget bill, U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, filed amendments that reflect his priorities as Ranking Member of the Judiciary Committee.

    “Overnight, Senate Republicans will attempt to advance a budget resolution that clears the way to cut taxes for President Trump and Elon Musk’s billionaire friends. And who will be left holding the bag? American families. Democrats are going to hold the floor into the night to expose how Donald Trump and Republicans have eviscerated so many of our institutions for their billionaire buddies,” Durbin said. “While Donald Trump may preach about corruption, fraud, crime, and grocery prices, here’s the reality: he has rid the government of its independent watchdogs, threatened critical funding for survivors of violent crime, endangered America’s food supply chain with his threats of mass deportations, and continues to purge and reassign senior law enforcement officials at DOJ and FBI—making America less safe.”

    Durbin’s amendments include:

    • Establishes a deficit-neutral reserve fund related to protecting from arrest, detention, or removal noncitizen food and farm laborers who do not present a threat to public safety or national security, and whose removal would create an immediate labor shortage and increase prices of household groceries, such as milk, cheese, eggs, meat, and produce. U.S. Senator Michael Bennet (D-CO) is a cosponsor of this amendment.
    • Establishes a deficit-neutral reserve fund related to protecting from mass deportations noncitizens brought to the United States as children who are eligible for DACA. U.S. Senators Alex Padilla (D-CA) and Angus King (I-ME) are cosponsors of this amendment.
    • Establishes a deficit-neutral reserve fund related to protecting Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) personnel who worked on January 6 investigations and prosecutions from being terminated or facing other forms of retribution for their work on these cases.
    • Establishes a deficit-neutral reserve fund related to protecting DOJ and FBI probationary personnel (staff with one to two years of experience or less) from mass layoffs.
    • Establishes a deficit-neutral reserve fund related to preventing DOJ and FBI personnel from being forced to participate in mass deportation efforts to the detriment of their work on child sexual abuse material (CSAM) investigations and prosecutions, responding to the fentanyl crisis, preventing violent crime, protecting national security, and responding to terrorism threats.
    • Establishes a deficit-neutral reserve fund related to ensuring that federal funds for victims of crime, support services for survivors, and victim compensation programs are not subject to further attempted funding freezes.
    • Establishes a deficit-neutral reserve fund related to protecting certain Violence Against Women Act programs that are tailored to communities, such as Native American and indigenous populations, from being cut due to DOJ’s broad anti-DEI efforts.
    • Establishes a deficit-neutral reserve fund related to preventing Elon Musk and the Department of Government Efficiency from accessing classified systems, personnel records, investigative records, and prosecutorial records at DOJ and its component agencies.

    -30-

    MIL OSI USA News

  • MIL-OSI USA: Senator Murkowski Releases Statement on Patel Nomination

    US Senate News:

    Source: United States Senator for Alaska Lisa Murkowski
    02.20.25
    Washington, DC – Today, U.S. Senator Lisa Murkowski (R-AK) released the following statement on her decision to vote against confirming Kash Patel as Director of the Federal Bureau of Investigation (FBI):
    “I will oppose Kash Patel’s confirmation to serve as Director of the Federal Bureau of Investigation. The FBI’s mission is “to protect the American people and uphold the Constitution of the United States.” Mr. Patel and I agree the bureau has crept past that mission, become an increasingly political agency, and eroded the public’s trust. We have had multiple frank and open discussions about how best to restore that trust. I agree with Mr. Patel that it begins by getting agents out in the field, doing what they signed up to do, rather than sitting behind an administrative desk.
    “My reservations with Mr. Patel stem from his own prior political activities and how they may influence his leadership. The FBI must be trusted as the federal agency that roots out crime and corruption, not focused on settling political scores. I have been disappointed that when he had the opportunity to push back on the administration’s decision to force the FBI to provide a list of agents involved in the January 6 investigations and prosecutions, he failed to do so. 
    “If confirmed, I wish him a successful tenure at the helm of this agency, and will endeavor to work with him to help address issues in Alaska, improve Tribal law enforcement across the country, and make needed changes within the FBI. I truly hope that he proves me wrong about the reservations I have of him today.”

    MIL OSI USA News

  • MIL-OSI USA: U.S. Senators Tommy Tuberville, Katie Britt Congratulate Director Patel, Urge FBI to Immediately Fill Open Slots at Redstone Arsenal

    US Senate News:

    Source: United States Senator Tommy Tuberville (Alabama)
    WASHINGTON, D.C. – U.S. Senators Tommy Tuberville (R-AL) and Katie Britt (R-AL) today sent a letter to Kash Patel following his Senate confirmation as the Director of the Federal Bureau of Investigation (FBI). In the letter, they urge Director Patel to immediately fill 1,000 of the open slots at FBI’s campus in Huntsville on Redstone Arsenal.
    The Senators wrote,“We are proud to represent the great state of Alabama, home to Redstone Arsenal which is the epicenter of the FBI’s technological capabilities and advanced training.  As threats to our nation become more sophisticated, FBI-Redstone Arsenal’s operations will need to continue growing.”
    “The North Campus is well prepared to support this mission by delivering state-of-the-art training to address cyber threats, emerging technologies, and the Field Offices’ investigative efforts.  The South Campus is currently under construction and will host even more capacity to address current and future threats,” they continued.
    “Given the strategic investments at Redstone Arsenal and how its synergies align with your mission of restoring the FBI’s focus to the safety and security of the American people, we urge you to assign an additional 1,000 employees to FBI-Redstone as a first step to ultimately filling the approximately 4,000 open slots the campus can accommodate.  This will send a message to our adversaries that the FBI’s leadership is back to prioritizing the pressing threats to our homeland. We look forward to working closely with you to Make America Safe Again,” the Senators added.
    The full text of the letter is available here.
    Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, HELP, and Aging Committees.

    MIL OSI USA News

  • MIL-OSI USA: Law Enforcement Cooperation Between United States and Mexico Results in Mexican Takedown of Cartel-Linked Alien Smugglers

    Source: US State of North Dakota

    Last night, extensive bilateral cooperation between the United States and Mexico resulted in the Mexico Attorney General’s Office “Fiscalía General de la República” (FGR) conducting a significant enforcement operation to dismantle a prolific transnational alien smuggling organization operating in Juarez, Chihuahua, along the U.S.-Mexico border.

    The targeted alien smuggling organization, a group based in Juarez, Mexico, utilizes smuggling corridors centered in the Anapra, Chihuahua / Santa Teresa, New Mexico area, employs Mexican nationals, many of whom are current and former members of various Mexico-based cartels, and is alleged to be responsible for illegally smuggling large numbers of individuals, including children, from Central America into El Paso, Texas. The criminal organization is also alleged to have kidnapped aliens seeking to enter the United States illegally and extorted their families for money before completing their smuggling journey. The enforcement operation included the execution of two arrest warrants in Mexico for alleged alien smugglers Brian Alan Torres Gonzalez and Soledad Morales Nava. Torres and Morales are Mexican citizens and will be prosecuted in Mexico in part with evidence provided by the United States.

    “On her first day in office, the Attorney General directed the Department of Justice to prioritize efforts to achieve the total elimination of cartels and transnational criminal organizations, and empowered Joint Task Force Alpha (JTFA) to increase their contributions to this fight,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “Today’s action by Mexican authorities is the latest example of how JTFA provides critical contributions to marshal the investigative and prosecutorial resources of the Department, and its law enforcement partners, to target human smugglers and enhance coordination in transnational law enforcement efforts to better combat these criminal organizations.”

    U.S. authorities provided assistance to the Mexico Attorney General’s Office through coordination under JTFA, which, since its creation in 2021, has marshalled the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, Honduras, Colombia, and Panama. Attorney General Pamela Bondi has elevated JTFA to the Office of the Attorney General, to be jointly supervised by the Office of the Deputy Attorney General. The task force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, and endanger migrants, pose national security threats, or are involved in organized crime. JTFA comprises detailees from U.S. Attorneys’ Offices along the border, along with dedicated prosecutor support by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Money Laundering and Asset Recovery Section; the Office of Prosecutorial Development, Assistance and Training; the Narcotic and Dangerous Drug Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in more than 350 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 300 U.S. convictions; more than 245 defendants sentenced, including significant jail sentences imposed; and substantial seizures and forfeitures of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs.

    U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) El Paso assisted foreign investigative efforts in the United States, working in concert with the U.S. Border Patrol. Support from ICE HSI-Mexico City was critical in providing coordination between American and Mexican law enforcement agencies. The Justice Department — including the U.S. Attorney’s Office for the Western District of Texas in El Paso, HRSP, and the Office of the Judicial Attache in Mexico City — provided significant assistance in this matter.

    MIL OSI USA News

  • MIL-OSI USA: Florida Businessman Sentenced in Connection with Migrant Labor Employment Scheme, Payroll Tax Evasion, and Worker Death

    Source: US State of California

    A Florida man was sentenced yesterday to 48 months in prison and ordered to forfeit more than $5.5 million to the United States as well as forfeit numerous real properties and cash, and to pay over $55 million in restitution for conspiracy to commit wire fraud, conspiracy to defraud the United States and willful violation of a workplace standard that resulted in the death of his employee. Manual Domingos Pita, of Wesley Chapel, previously pleaded guilty to those charges on July 9, 2024.

    According to court documents, Pita owned and operated Domingos 54 Construction, a subcontracting business for the wood framing of new construction homes. Domingos 54 was a shell construction company that Pita used to provide workers, including undocumented aliens, with construction jobs. However, Pita failed to secure the required workers compensation insurance coverage for these employees by falsifying in worker’s compensation insurance applications the number of workers for which he sought coverage. In addition, Pita failed to pay any federal employment taxes on the wages that these workers earned during the course of the scheme between 2018 and 2022. As a result, Pita caused several worker’s compensation insurance companies to sustain a loss of over $22.7 million in premiums that they could have charged had they been aware of the number of workers which they had been manipulated into covering with their policies. In addition, Pita failed to pay to the IRS over $33.7 million in federal employment taxes on those workers’ wages.

    Between February and July 2019, investigators with the Occupational Safety and Health Administration (OSHA) issued six citations to Domingos 54 for failure to provide fall protection to workers. Even after being cited for these violations, Pita continued to ignore OSHA requirements. In March 2020, Pita assigned a worker and three other carpenters to install sheeting on the roof of a residential home in windy conditions without providing the required fall-protection gear or ensuring its use. As a result, one of the workers was blown off the roof and died from his injuries.

    “Pita’s history of OSHA violations and deception tragically led to a worker’s death,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division. “We are committed to upholding the rule of law by prosecuting fraud and enforcing worker safety standards.”

    “The defendant in this case engaged in a deliberate scheme to defraud insurance companies, the government and evade taxes, resulting in huge losses to the U.S. Treasury, and to personally enrich himself,” said Acting U.S. Attorney for the Middle District of Florida Sara C. Sweeney. “In addition, flagrant violations of OSHA safety standards put workers at unacceptable risk, ultimately resulting in the death of an employee. My office is committed to federally prosecuting and holding accountable anyone who violates these laws and regulations.”

    “Mr. Pita repeatedly violated the longstanding policies designed to protect the workforce which resulted in a tragic death,” said Special Agent in Charge Matthew Fodor of the FBI’s Tampa Field Office. “The FBI and its partners will aggressively pursue those who selfishly ignore the laws and policies in place to protect America’s workforce.”

    “Not only does this type of scheme give an illegal advantage over honest competitors, it intends to allow the use of illegal, undocumented labor to achieve that advantage,” said Special Agent in Charge Ron Loecker of IRS Criminal Investigation’s Tampa Field Office. “It’s a blatant form of cheating that undercuts fair competition, costs the government millions of dollars in tax revenue, and skirts our nation’s immigration laws. This case reaffirms our unwavering commitment to prosecuting those who engage in fraud at the expense of workers, taxpayers, and law-abiding businesses.”

    The FBI, IRS Criminal Investigation, Homeland Security Investigations, Florida Department of Financial Services’ Bureau of Insurance Fraud-Criminal Investigations and the Department of Labor’s Office of Inspector General investigated the case.

    Assistant U.S. Attorney Jay L. Hoffer for the Middle District of Florida and Senior Trial Attorney Banumathi Rangarajan of the Environment and Natural Resources Division’s Environmental Crimes Section prosecuted the case.

    MIL OSI USA News

  • MIL-OSI Security: Law Enforcement Cooperation Between United States and Mexico Results in Mexican Takedown of Cartel-Linked Alien Smugglers

    Source: United States Attorneys General

    Last night, extensive bilateral cooperation between the United States and Mexico resulted in the Mexico Attorney General’s Office “Fiscalía General de la República” (FGR) conducting a significant enforcement operation to dismantle a prolific transnational alien smuggling organization operating in Juarez, Chihuahua, along the U.S.-Mexico border.

    The targeted alien smuggling organization, a group based in Juarez, Mexico, utilizes smuggling corridors centered in the Anapra, Chihuahua / Santa Teresa, New Mexico area, employs Mexican nationals, many of whom are current and former members of various Mexico-based cartels, and is alleged to be responsible for illegally smuggling large numbers of individuals, including children, from Central America into El Paso, Texas. The criminal organization is also alleged to have kidnapped aliens seeking to enter the United States illegally and extorted their families for money before completing their smuggling journey. The enforcement operation included the execution of two arrest warrants in Mexico for alleged alien smugglers Brian Alan Torres Gonzalez and Soledad Morales Nava. Torres and Morales are Mexican citizens and will be prosecuted in Mexico in part with evidence provided by the United States.

    “On her first day in office, the Attorney General directed the Department of Justice to prioritize efforts to achieve the total elimination of cartels and transnational criminal organizations, and empowered Joint Task Force Alpha (JTFA) to increase their contributions to this fight,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “Today’s action by Mexican authorities is the latest example of how JTFA provides critical contributions to marshal the investigative and prosecutorial resources of the Department, and its law enforcement partners, to target human smugglers and enhance coordination in transnational law enforcement efforts to better combat these criminal organizations.”

    U.S. authorities provided assistance to the Mexico Attorney General’s Office through coordination under JTFA, which, since its creation in 2021, has marshalled the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, Honduras, Colombia, and Panama. Attorney General Pamela Bondi has elevated JTFA to the Office of the Attorney General, to be jointly supervised by the Office of the Deputy Attorney General. The task force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, and endanger migrants, pose national security threats, or are involved in organized crime. JTFA comprises detailees from U.S. Attorneys’ Offices along the border, along with dedicated prosecutor support by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section (HRSP) and supported by the Money Laundering and Asset Recovery Section; the Office of Prosecutorial Development, Assistance and Training; the Narcotic and Dangerous Drug Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in more than 350 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 300 U.S. convictions; more than 245 defendants sentenced, including significant jail sentences imposed; and substantial seizures and forfeitures of assets and contraband including millions of dollars in cash, real property, vehicles, firearms and ammunition, and drugs.

    U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) El Paso assisted foreign investigative efforts in the United States, working in concert with the U.S. Border Patrol. Support from ICE HSI-Mexico City was critical in providing coordination between American and Mexican law enforcement agencies. The Justice Department — including the U.S. Attorney’s Office for the Western District of Texas in El Paso, HRSP, and the Office of the Judicial Attache in Mexico City — provided significant assistance in this matter.

    MIL Security OSI

  • MIL-OSI Security: Owner of Durable Medical Equipment Companies Charged in Nearly $30 Million Fraud Scheme

    Source: Office of United States Attorneys

    Defendant allegedly used proceeds to purchase two Ferraris, a Mercedes-Benz Model S, at least three Rolex watches

    BOSTON – The owner of Pharmagears, LLC (Pharmagears) and RR Medco, LLC (RR Medco) has been charged in connection with a nearly $30 million fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.

    Raju Sharma, 61, of Sharon, was charged by criminal complaint with one count of conspiracy to commit health care fraud. Sharma was arrested this morning and later released on conditions following an initial appearance in federal court in Boston.

    “As alleged, Mr. Sharma exploited vulnerable Medicare beneficiaries and defrauded the system of millions of dollars meant for legitimate medical care. His actions caused millions of dollars of waste on DME products beneficiaries did not need and did not want. He did this to enrich himself – and allow him to purchase luxury cars and high-end watches – all at the expense of the American people,” said United States Attorney Leah B. Foley. “This office will continue to hold accountable those who undermine the integrity of our healthcare system for personal gain. Fraudsters who think they can manipulate the system without consequence should take heed: we will investigate you, we will prosecute you, and we will hold you accountable to ensure that justice is served.”

    “Today’s arrest underscores HHS-OIG’s commitment to protecting patients and taxpayers from fraudulent schemes that exploit our health care system and are motivated by pure greed,” stated Special Agent in Charge Roberto Coviello with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work tirelessly with our law enforcement partners to investigate allegations that individuals and entities are profiting from deceiving and abusing federal health care programs.” “Today’s arrest underscores HHS-OIG’s commitment to protecting patients and taxpayers from fraudulent schemes that exploit our health care system and are motivated by pure greed,” stated Special Agent in Charge Roberto Coviello with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work tirelessly with our law enforcement partners to investigate allegations that individuals and entities are profiting from deceiving and abusing federal health care programs.”

    “Raju Sharma apparently thought he had hit upon a surefire moneymaker when he allegedly conspired with others to fraudulently bill Medicare for almost $30 million worth of durable medical equipment that was unwanted, unnecessary and useless to patients so he could purchase luxury vehicles and expensive watches for himself,” said Jodi Cohen, Special Agent in Charge, Federal Bureau of Investigations, Boston Division. “Health care fraud isn’t some quick and easy way to bulk up your bank account. It’s a costly, consequential federal crime that strains the system and cheats the taxpayers who fund it. Anyone involved in, or entertaining, similar activity should know that the FBI will pursue anyone trying to steal from this country’s vital health care system.”

    According to the charging documents, between February 2021 and February 2025, Sharma, on behalf of Pharmagears and RR Medco, entered into contracts with telemarketing companies that generated DME orders by targeting Medicare beneficiaries. Sharma then allegedly billed Medicare for this medically unnecessary DME, which Medicare beneficiaries often did not want or could not use and/or a medical practitioner ordered without having met or examined the beneficiary or were ordered by the fraudulent use of practitioners’ national provider identifiers without their knowledge or assent. It is alleged that these DME orders were also obtained in violation of the Anti-Kickback Statute, because although Sharma agreed in the contracts to pay the marketing companies a flat fee for their services, Sharma in fact paid the marketing companies on a per-lead, or per-order, basis.  

    It is further alleged that Sharma worked with multiple other co-conspirators, including family and acquaintances, to open and operate additional DME companies in the same fraudulent manner. In total, the companies owned, operated, or connected with Sharma allegedly billed Medicare approximately $29.6 million for these fraudulent DME orders and were paid approximately $15.8 million. According to the charging documents, Sharma made substantial profits from this alleged fraud, which he used to purchase luxury goods, including two Ferraris, a Mercedes-Benz Model S and at least three Rolex watches. The Court issued seizure warrants for these luxury goods in connection with today’s charges.

    The charge of conspiracy to commit health care fraud provides for a sentence of up to 10 years in prison, supervised release for up to three years, and a fine of up to $250,000 or twice the gross pecuniary gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    U.S. Attorney Foley, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. Valuable assistance was provided by the United States Marshals and the Sharon Police Department. Assistant U.S. Attorneys Lauren Graber and Sarah Hoefle of the Criminal Division are prosecuting the case.

    The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI

  • MIL-OSI Security: Former Illinois Police Officer Admits Assaulting Handcuffed Man

    Source: Office of United States Attorneys

    ST. LOUIS – A former police officer in Venice, Ill. on Thursday admitted striking a handcuffed man in the face after a police chase.

    Justin Gaither, 34, pleaded guilty in U.S. District Court in St. Louis to one count of deprivation of rights under color of law, namely the right to be free from the use of unreasonable force. He admitted that on Nov. 20, 2022, while working in full uniform and on duty with the Venice Police Department, he began pursuing a car that was displaying stolen license plates. The car drove over spike strips that Gaither deployed, then over the McKinley Bridge and into St. Louis. A Brooklyn (Illinois) Police Department officer was also pursuing the car. The pursuit ended in the 3800 block of Parnell Avenue in St. Louis and all of the vehicle’s occupants ran away from the car. Gaither and the Brooklyn officer, accompanied by that officer’s K9, chased the driver. The driver was bitten while climbing over a fence, fell and was then handcuffed by the Brooklyn officer. As Gaither lifted the driver from the ground to escort him to a police vehicle, he struck the driver twice in the face without justification and without a legitimate purpose, the plea agreement says. The driver suffered a broken nose.

    Gaither is scheduled to be sentenced on May 2. The charge carries penalty of up to 10 years in prison, a $250,000 fine, or both prison and fine.

    The FBI investigated the case. Assistant U.S. Attorney Christine Krug is prosecuting the case.

    MIL Security OSI

  • MIL-OSI USA: Markey, Colleagues Blast Trump Admin. for Nuclear Security Worker Firings

    US Senate News:

    Source: United States Senator for Massachusetts Ed Markey

    Letter Text (PDF)

    ?Washington (February 20, 2025) – Senators Edward J. Markey (D-Mass.) along with Senators Peter Welch (D-Vt.), Elizabeth Warren (D-Mass.), Jacky Rosen (D-Nev.), Cory Booker (D-N.J.), Jeff Merkley (D-Ore.) and Congressman John Garamendi (CA-08), today wrote to Department of Energy (DOE) Secretary Chris Wright about the Department of Government Efficiency (DOGE) firing up to 350 staff members at the National Nuclear Security Administration (NNSA), jeopardizing the security of the U.S. nuclear stockpile, weakening our ability to detect and prevent threats to nuclear safety, and undermining U.S. nonproliferation commitments. Senators Markey and Merkley and Congressman Garamendi are co-chairs of the congressional Nuclear Weapons and Arms Control Working Group.

    In the letter, the lawmakers write, “According to press reports, these firings occurred because ‘the officials did not seem to know this agency oversees America’s nuclear weapons.’ The reckless decision to eliminate 350 positions, without a clear national security justification, raises serious concerns about the Department of Energy’s (DOE) commitment to this core mission. DOE has struggled to rehire some of these employees ‘because they didn’t have their new contact information.’ This series of events calls into further question DOGE’s competence to carry out its self-assigned task.”

    The lawmakers continue, “Although you and DOGE may find it administratively convenient to fire probationary employees, these particular employees were not inexperienced new hires to the federal government.” 

    The lawmakers request responses to questions that include:

    • What was the rationale for the reduction in staff at the NNSA? 
    • Who determined that NNSA had too many employees and why?
    •  What is the administration’s broader strategy for responsibly ensuring adequate staffing at the NNSA that guarantees strong and effective oversight of the nuclear arsenal? 
    • If NNSA employees are not exempt, will the decision on whether to accept employees’ resignations include an assessment of how the loss of the employee in that role would impact DOE capabilities? If so, how will you make that assessment? 
    • What, if any, security assessments were conducted before terminating these 350 NNSA employees? 
    • What is the administration’s broader strategy for responsibly ensuring adequate staffing at the NNSA that guarantees strong and effective oversight of the nuclear arsenal? 
    • Which employees have been rehired and how many have accepted the offer to come back? 
    • What steps are DOE and NNSA taking to prevent unauthorized access to classified systems by DOGE members?

    On February 12, 2025, Senator Markey and Congressman Don Beyer (VA-08), a House co-chair of the Nuclear Weapons and Arms Control Working Group, wrote to Energy Secretary Wright regarding their concerns that Elon Musk’s DOGE had been granted access to DOE, which oversees the NNSA and the nation’s most sensitive nuclear weapons secrets. 

    MIL OSI USA News