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Category: Intelligence Agencies

  • MIL-OSI Security: Fourteen Members and Associates of Violent Transnational Motorcycle Gang Indicted on RICO and Murder Charges

    Source: United States Attorneys General

    An indictment was unsealed today in the Southern District of Texas charging 14 members and associates of the Bandidos Outlaw Motorcycle Gang for their alleged roles in a criminal enterprise engaged in murder, robbery, arson, narcotics distribution, and witness intimidation in and around Houston.

    The indictment accuses the defendants of various crimes, including engaging in a conspiracy to commit racketeering (RICO) activity and committing violent crimes in furtherance of the gang such as murder, attempted murder, and assault. The indictment alleges that the Bandidos are a self-identified “outlaw” motorcycle organization with a membership of approximately 1,500 to 2,000 in the United States and an additional 1,000 to 1,500 members internationally, including in Mexico.

    “Today’s indictment is an important step in eliminating the Bandidos Outlaw Motorcycle Gang,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “The Bandidos declare war on rivals — and they wage that war on our streets. Criminal behavior like this has no place in America, and the Department of Justice is fully committed to bringing peace back to our communities.”

    “Ensuring the safety of the public is Southern District of Texas’ paramount concern,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “The indictment here not only alleges shocking crimes of violence, but also alleges that these offenses were committed openly and wantonly, where any innocent member of the public could have been hurt or killed.”

    According to court documents and statements in court, beginning in 2019, a violent turf war erupted between the Bandidos and B*EAST, a rival outlaw motorcycle gang in the Houston area. As part of this turf war, Bandidos national leadership allegedly put out a “smash on site” order to commit physical assaults, including murder, against B*EAST members. The turf war has resulted in gunfire exchanged on public roadways and in public establishments with innocent civilians present, according to the charges.

    John M. Pfeffer, also known as Big John, 32, Darvi Hinojosa, also known as 10 Round, 35, and Bradley Rickenbacker, also known as Dolla Bill, 37, all of Katy, Texas; Michael H. Dunphy, also known as Money Mike, 57, of Cleveland, Texas; Christopher Sanchez, also known as Monster, 40, of Tomball, Texas; and Brandon K. Hantz, also known as Loco and Gun Drop, 33, of Crosby, Texas, are charged with conspiracy to commit racketeering activity. Pfeffer, Dunphy, Hinojosa, Rickenbacker, and Sanchez are further charged with multiple counts of assault in aid of racketeering. Pfeffer, Hinojosa, Rickenbacker, and Sanchez are also charged with using a firearm during and in relation to a crime of violence, while Sanchez faces charges of being a felon in possession of a firearm. Hantz is also charged with arson.

    If convicted, Pfeffer, Hinojosa, Rickenbacker, and Sanchez each face a maximum penalty of life in prison, while Dunphy and Hantz each face a maximum penalty of 20 years in prison on each of their counts.

    The indictment also charges David Vargas, also known as Brake Check and First Time, 33, of Houston, with murder in aid of racketeering; using a firearm during and in relation to a crime of violence resulting in death; attempted murder in aid of racketeering; and using a firearm during and in relation to the attempted murders. All those charges relate to the killing of a rival and the shooting of two others. If convicted, Vargas faces a mandatory penalty of life in prison or the death penalty.

    Further, Marky Baker, also known as Pinche Guero and Guero, 40; Ronnie McCabe, also known as Meathead, 56; and Jeremy Cox, also known as JD, 37, all of Houston; Roy Gomez, also known as Repo, 50, of Richmond, Texas; and Marcel Lett, 56, of Pearland, Texas, are charged along with Pfeffer and Rickenbacker with assault in aid of racketeering and using a firearm during and in relation to a crime of violence. These charges are in relation to an alleged assault and robbery that resulted in the death of a rival. If convicted, they each face a maximum penalty of life in prison.

    Hinojosa is also charged along with John Sblendorio, also known as Tech9, 54, of Houston, with conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, assault in aid of racketeering, and using a firearm during and in relation to a crime of violence in connection with the shooting of a rival gang member. Hinojosa is also charged with conspiracy to distribute cocaine and three counts of possession with intent to distribute cocaine. If convicted, Sblendorio and Hinojosa each face a maximum penalty of life in prison.

    In addition, Sean G. Christison, also known as Skinman, 30, of Katy, is charged with possession with intent to distribute cocaine and possession of a firearm in furtherance of a drug trafficking crime. He faces a maximum penalty of life in prison.

    For all defendants, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI, Texas Board of Criminal Justice — Office of Inspector General, Texas Department of Public Safety, and Montgomery County Sheriff’s Office conducted the investigation, with assistance from the Harris County Sheriff’s Office; Houston and Pasadena Police Departments; Texas Alcoholic Beverage Commission; LaMarque and Katy Police Departments; U.S. Marshals Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Cypress-Fairbanks Independent School District Police Department.

    Trial Attorneys Grace H. Bowen and Christopher Taylor of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Byron H. Black and Kelly Zenón-Matos for the Southern District of Texas are prosecuting the case.

    This investigation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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 on the Justice Department’s OCDETF webpage.

    This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Justice Department’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, please visit www.justice.gov/psn.

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

    MIL Security OSI –

  • MIL-OSI Security: #StopRansomware: Ghost (Cring) Ransomware

    Source: US Department of Homeland Security

    Summary

    Note: This joint Cybersecurity Advisory is part of an ongoing #StopRansomware effort to publish advisories for network defenders that detail various ransomware variants and ransomware threat actors. These #StopRansomware advisories include recently and historically observed tactics, techniques, and procedures (TTPs) and indicators of compromise (IOCs) to help organizations protect against ransomware. Visit stopransomware.gov to see all #StopRansomware advisories and to learn more about other ransomware threats and no-cost resources.

    The Federal Bureau of Investigation (FBI), Cybersecurity and Infrastructure Security Agency (CISA), and the Multi-State Information Sharing and Analysis Center (MS-ISAC) are releasing this joint advisory to disseminate known Ghost (Cring)—(“Ghost”)—ransomware IOCs and TTPs identified through FBI investigation as recently as January 2025.

    Beginning early 2021, Ghost actors began attacking victims whose internet facing services ran outdated versions of software and firmware. This indiscriminate targeting of networks containing vulnerabilities has led to the compromise of organizations across more than 70 countries, including organizations in China. Ghost actors, located in China, conduct these widespread attacks for financial gain. Affected victims include critical infrastructure, schools and universities, healthcare, government networks, religious institutions, technology and manufacturing companies, and numerous small- and medium-sized businesses.

    Ghost actors rotate their ransomware executable payloads, switch file extensions for encrypted files, modify ransom note text, and use numerous ransom email addresses, which has led to variable attribution of this group over time. Names associated with this group include Ghost, Cring, Crypt3r, Phantom, Strike, Hello, Wickrme, HsHarada, and Rapture. Samples of ransomware files Ghost used during attacks are: Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe.

    Ghost actors use publicly available code to exploit Common Vulnerabilities and Exposures (CVEs) and gain access to internet facing servers. Ghost actors exploit well known vulnerabilities and target networks where available patches have not been applied.

    The FBI, CISA, and MS-ISAC encourage organizations to implement the recommendations in the Mitigations section of this advisory to reduce the likelihood and impact of Ghost ransomware incidents.

    Download the PDF version of this report:

    For a downloadable copy of IOCs, see:

    Technical Details

    Note: This advisory uses the MITRE ATT&CK® Matrix for Enterprise framework, version 16.1. See the MITRE ATT&CK Tactics and Techniques section of this advisory for a table of the threat actors’ activity mapped to MITRE ATT&CK tactics and techniques.

    Initial Access

    The FBI has observed Ghost actors obtaining initial access to networks by exploiting public facing applications that are associated with multiple CVEs [T1190]. Their methodology includes leveraging vulnerabilities in Fortinet FortiOS appliances (CVE-2018-13379), servers running Adobe ColdFusion (CVE-2010-2861 and CVE-2009-3960), Microsoft SharePoint (CVE-2019-0604), and Microsoft Exchange (CVE-2021-34473, CVE-2021-34523, and CVE-2021-31207— commonly referred to as the ProxyShell attack chain).

    Execution

    Ghost actors have been observed uploading a web shell [T1505.003] to a compromised server and leveraging Windows Command Prompt [T1059.003] and/or PowerShell [T1059.001] to download and execute Cobalt Strike Beacon malware [T1105] that is then implanted on victim systems. Despite Ghost actors’ malicious implementation, Cobalt Strike is a commercially available adversary simulation tool often used for the purposes of testing an organization’s security controls.

    Persistence

    Persistence is not a major focus for Ghost actors, as they typically only spend a few days on victim networks. In multiple instances, they have been observed proceeding from initial compromise to the deployment of ransomware within the same day. However, Ghost actors sporadically create new local [T1136.001] and domain accounts [T1136.002] and change passwords for existing accounts [T1098]. In 2024, Ghost actors were observed deploying web shells [T1505.003] on victim web servers.

    Privilege Escalation

    Ghost actors often rely on built in Cobalt Strike functions to steal process tokens running under the SYSTEM user context to impersonate the SYSTEM user, often for the purpose of running Beacon a second time with elevated privileges [T1134.001].

    Ghost actors have been observed using multiple open-source tools in an attempt at privilege escalation through exploitation [T1068] such as “SharpZeroLogon,” “SharpGPPPass,” “BadPotato,” and “GodPotato.” These privilege escalation tools would not generally be used by individuals with legitimate access and credentials. 

    See Table 1 for a descriptive listing of tools.

    Credential Access

    Ghost actors use the built in Cobalt Strike function “hashdump” or Mimikatz [T1003] to collect passwords and/or password hashes to aid them with unauthorized logins and privilege escalation or to pivot to other victim devices.

    Defense Evasion

    Ghost actors used their access through Cobalt Strike to display a list of running processes [T1057] to determine which antivirus software [T1518.001] is running so that it can be disabled [T1562.001]. Ghost frequently runs a command to disable Windows Defender on network connected devices. Options used in this command are: Set-MpPreference -DisableRealtimeMonitoring 1 -DisableIntrusionPreventionSystem 1 -DisableBehaviorMonitoring 1 -DisableScriptScanning 1 -DisableIOAVProtection 1 -EnableControlledFolderAccess Disabled -MAPSReporting Disabled -SubmitSamplesConsent NeverSend.

    Discovery

    Ghost actors have been observed using other built-in Cobalt Strike commands for domain account discovery [T1087.002], open-source tools such as “SharpShares” for network share discovery [T1135], and “Ladon 911” and “SharpNBTScan” for remote systems discovery [T1018]. Network administrators would be unlikely to use these tools for network share or remote systems discovery.

    Lateral Movement

    Ghost actors used elevated access and Windows Management Instrumentation Command-Line (WMIC) [T1047] to run PowerShell commands on additional systems on the victim network— often for the purpose of initiating additional Cobalt Strike Beacon infections. The associated encoded string is a base 64 PowerShell command that always begins with: powershell -nop -w hidden -encodedcommand JABzAD0ATgBlAHcALQBPAGIAagBlAGMAdAAgAEkATwAuAE0AZQBtAG8AcgB5AFMAdAByAGUAYQBtACgALABbAEMAbwBuAHYAZQByAHQAXQA6ADoARgByAG8AbQBCAGEAcwBlADYANABTAHQAcgBpAG4AZwAoACIA… [T1132.001][T1564.003].

    This string decodes to “$s=New-Object IO.MemoryStream(,[Convert]::FromBase64String(“” and is involved with the execution of Cobalt Strike in memory on the target machine.

    In cases where lateral movement attempts are unsuccessful, Ghost actors have been observed abandoning an attack on a victim.

    Exfiltration

    Ghost ransom notes often claim exfiltrated data will be sold if a ransom is not paid. However, Ghost actors do not frequently exfiltrate a significant amount of information or files, such as intellectual property or personally identifiable information (PII), that would cause significant harm to victims if leaked. The FBI has observed limited downloading of data to Cobalt Strike Team Servers [T1041]. Victims and other trusted third parties have reported limited uses of Mega.nz [T1567.002] and installed web shells for similar limited data exfiltration. Note: The typical data exfiltration is less than hundreds of gigabytes of data.

    Command and Control

    Ghost actors rely heavily on Cobalt Strike Beacon malware and Cobalt Strike Team Servers for command and control (C2) operations, which function using hypertext transfer protocol (HTTP) and hypertext transfer protocol secure (HTTPS) [T1071.001]. Ghost rarely registers domains associated with their C2 servers. Instead, connections made to a uniform resource identifier (URI) of a C2 server, for the purpose of downloading and executing Beacon malware, directly reference the C2 server’s IP address. For example, http://xxx.xxx.xxx.xxx:80/Google.com where xxx.xxx.xxx.xxx represents the C2 server’s IP address.

    For email communication with victims, Ghost actors use legitimate email services that include traffic encryption features. [T1573] Some examples of emails services that Ghost actors have been observed using are Tutanota, Skiff, ProtonMail, Onionmail, and Mailfence.

    Note: Table 2 contains a list of Ghost ransom email addresses.

    Impact and Encryption

    Ghost actors use Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe, which are all ransomware executables that share similar functionality. Ghost variants can be used to encrypt specific directories or the entire system’s storage [T1486]. The nature of executables’ operability is based on command line arguments used when executing the ransomware file. Various file extensions and system folders are excluded during the encryption process to avoid encrypting files that would render targeted devices inoperable.

    These ransomware payloads clear Windows Event Logs [T1070.001], disable the Volume Shadow Copy Service, and delete shadow copies to inhibit system recovery attempts [T1490]. Data encrypted with Ghost ransomware variants cannot be recovered without the decryption key. Ghost actors hold the encrypted data for ransom and typically demand anywhere from tens to hundreds of thousands of dollars in cryptocurrency in exchange for decryption software [T1486].

    The impact of Ghost ransomware activity varies widely on a victim-to-victim basis. Ghost actors tend to move to other targets when confronted with hardened systems, such as those where proper network segmentation prevents lateral moment to other devices.

    Indicators of Compromise (IOC)

    Table 1 lists several tools and applications Ghost actors have used for their operations. The use of these tools and applications on a network should be investigated further.

    Note: Authors of these tools generally state that they should not be used in illegal activity.

    Table 1: Tools Leveraged by Ghost Actors
    Name Description Source
    Cobalt Strike Cobalt Strike is penetration testing software. Ghost actors  use an unauthorized version of Cobalt Strike. N/A
    IOX Open-source proxy, used to establish a reverse proxy to a Ghost C2 server from an internal victim device. github[.]com/EddieIvan01/iox
    SharpShares.exe SharpShares.exe is used to enumerate accessible network shares in a domain. Ghost actors use this primarily for host discovery. github[.]com/mitchmoser/SharpShares
    SharpZeroLogon.exe SharpZeroLogon.exe attempts to exploit CVE-2020-1472 and is run against a target Domain Controller. github[.]com/leitosama/SharpZeroLogon
    SharpGPPPass.exe SharpGPPPass.exe attempts to exploit CVE-2014-1812 and targets XML files created through Group Policy Preferences that may contain passwords. N/A
    SpnDump.exe SpnDump.exe is used to list service principal name identifiers, which Ghost actors use for service and hostname enumeration. N/A
    NBT.exe A compiled version of SharpNBTScan, a NetBIOS scanner. Ghost actors use this tool for hostname and IP address enumeration. github[.]com/BronzeTicket/SharpNBTScan
    BadPotato.exe BadPotato.exe is an exploitation tool used for privilege escalation. github[.]com/BeichenDream/BadPotato
    God.exe God.exe is a compiled version of GodPotato and is used for privilege escalation. github[.]com/BeichenDream/GodPotato
    HFS (HTTP File Server) A portable web server program that Ghost actors use to host files for remote access and exfiltration. rejitto[.]com/hfs
    Ladon 911 A multifunctional scanning and exploitation tool, often used by Ghost actors with the MS17010 option to scan for SMB vulnerabilities associated with CVE-2017-0143 and CVE-2017-0144. github[.]com/k8gege/Ladon
    Web Shell A backdoor installed on a web server that allows for the execution of commands and facilitates persistent access. Slight variation of github[.]com/BeichenDream/Chunk-Proxy/blob/main/proxy.aspx
    Table 2: MD5 File Hashes Associated with Ghost Ransomware Activity
    File name MD5 File Hash
    Cring.exe c5d712f82d5d37bb284acd4468ab3533
    Ghost.exe

    34b3009590ec2d361f07cac320671410

    d9c019182d88290e5489cdf3b607f982
    ElysiumO.exe

    29e44e8994197bdb0c2be6fc5dfc15c2

    c9e35b5c1dc8856da25965b385a26ec4

    d1c5e7b8e937625891707f8b4b594314
    Locker.exe ef6a213f59f3fbee2894bd6734bbaed2
    iex.txt, pro.txt (IOX) ac58a214ce7deb3a578c10b97f93d9c3
    x86.log (IOX)

    c3b8f6d102393b4542e9f951c9435255

    0a5c4ad3ec240fbfd00bdc1d36bd54eb
    sp.txt (IOX) ff52fdf84448277b1bc121f592f753c5
    main.txt (IOX) a2fd181f57548c215ac6891d000ec6b9
    isx.txt (IOX) 625bd7275e1892eac50a22f8b4a6355d
    sock.txt (IOX) db38ef2e3d4d8cb785df48f458b35090

    Ransom Email Addresses

    Table 3 is a subset of ransom email addresses that have been included in Ghost ransom notes.

    Table 3: Ransom Email Addresses
    Email Addresses
    asauribe@tutanota.com ghostbackup@skiff.com rainbowforever@tutanota.com
    cringghost@skiff.com ghosts1337@skiff.com retryit1998@mailfence.com
    crptbackup@skiff.com ghosts1337@tuta.io retryit1998@tutamail.com
    d3crypt@onionmail.org ghostsbackup@skiff.com rsacrpthelp@skiff.com
    d3svc@tuta.io hsharada@skiff.com rsahelp@protonmail.com
    eternalnightmare@tutanota.com just4money@tutanota.com sdghost@onionmail.org
    evilcorp@skiff.com kellyreiff@tutanota.com shadowghost@skiff.com
    fileunlock@onionmail.org kev1npt@tuta.io shadowghosts@tutanota.com
    fortihooks@protonmail.com lockhelp1998@skiff.com summerkiller@mailfence.com
    genesis1337@tutanota.com r.heisler@skiff.com summerkiller@tutanota.com
    ghost1998@tutamail.com rainbowforever@skiff.com webroothooks@tutanota.com

    Ransom Notes

    Starting approximately in August 2024, Ghost actors began using TOX IDs in ransom notes as an alternative method for communicating with victims. For example: EFE31926F41889DBF6588F27A2EC3A2D7DEF7D2E9E0A1DEFD39B976A49C11F0E19E03998DBDA and E83CD54EAAB0F31040D855E1ED993E2AC92652FF8E8742D3901580339D135C6EBCD71002885B.

    MITRE ATT&CK Tactics and Techniques

    See Table 4 to Table 13 for all referenced threat actor tactics and techniques in this advisory. For assistance with mapping malicious cyber activity to the MITRE ATT&CK framework, version 16.1, see CISA and MITRE ATT&CK’s Best Practices for MITRE ATT&CK Mapping and CISA’s Decider Tool.

    Table 4: Initial Access
    Technique Title  ID Use
    Exploit Public-Facing Application T1190 Ghost actors exploit multiple vulnerabilities in public-facing systems to gain initial access to servers.
    Table 5: Execution
    Technique Title  ID Use
    Windows Management Instrumentation T1047 Ghost actors abuse WMI to run PowerShell scripts on other devices, resulting in their infection with Cobalt Strike Beacon malware.
    PowerShell T1059.001 Ghost actors use PowerShell for various functions including to deploy Cobalt Strike.
    Windows Command Shell T1059.003 Ghost actors use the Windows Command Shell to download malicious content on to victim servers.
    Table 6: Persistence
    Technique Title  ID Use
    Account Manipulation T1098 Ghost actors change passwords for already established accounts.
    Local Account T1136.001 Ghost actors create new accounts or makes modifications to local accounts.
    Domain Account T1136.002 Ghost actors create new accounts or makes modifications to domain accounts.
    Web Shell T1505.003 Ghost actors upload web shells to victim servers to gain access and for persistence.
    Table 7: Privilege Escalation
    Technique Title  ID Use
    Exploitation for Privilege Escalation T1068 Ghost actors use a suite of open source tools in an attempt to gain elevated privileges through exploitation of vulnerabilities.
    Token Impersonation/Theft T1134.001 Ghost actors use Cobalt Strike to steal process tokens of processes running at a higher privilege.
    Table 8: Defense Evasion
    Technique Title  ID Use
    Application Layer Protocol: Web Protocols T1071.001 Ghost actors use HTTP and HTTPS protocols while conducting C2 operations. 
    Impair Defenses: Disable or Modify Tools T1562.001 Ghost actors disable antivirus products.
    Hidden Window T1564.003 Ghost actors use PowerShell to conceal malicious content within legitimate appearing command windows.
    Table 9: Credential Access
    Technique Title  ID Use
    OS Credential Dumping T1003 Ghost actors use Mimikatz and the Cobalt Strike “hashdump” command to collect passwords and password hashes.
    Table 10: Discovery
    Technique Title  ID Use
    Remote System Discovery T1018 Ghost actors use tools like Ladon 911 and ShapNBTScan for remote systems discovery.
    Process Discovery T1057 Ghost actors run a ps command to list running processes on an infected device.
    Domain Account Discovery T1087.002 Ghost actors run commands such as net group “Domain Admins” /domain to discover a list of domain administrator accounts.
    Network Share Discovery T1135 Ghost actors use various tools for network share discovery for the purpose of host enumeration.
    Software Discovery T1518 Ghost actors use their access to determine which antivirus software is running.
    Security Software Discovery T1518.001 Ghost actors run Cobalt Strike to enumerate running antivirus software.
    Table 11: Exfiltration
    Technique Title  ID Use
    Exfiltration Over C2 Channel T1041 Ghost actors use both web shells and Cobalt Strike to exfiltrate limited data.
    Exfiltration to Cloud Storage T1567.002 Ghost actors sometimes use legitimate cloud storage providers such as Mega.nz for malicious exfiltration operations.
    Table 12: Command and Control
    Technique Title  ID Use
    Web Protocols T1071.001 Ghost actors use Cobalt Strike Beacon malware and Cobalt Strike Team Servers which communicate over HTTP and HTTPS.
    Ingress Tool Transfer T1105 Ghost actors use Cobalt Strike Beacon malware to deliver ransomware payloads to victim servers.
    Standard Encoding T1132.001 Ghost actors use PowerShell commands to encode network traffic which reduces their likelihood of being detected during lateral movement.
    Encrypted Channel T1573 Ghost actors use encrypted email platforms to facilitate communications. 
    Table 13: Impact
    Technique Title  ID Use
    Data Encrypted for Impact T1486 Ghost actors use ransomware variants Cring.exe, Ghost.exe, ElysiumO.exe, and Locker.exe to encrypt victim files for ransom.
    Inhibit System Recovery T1490 Ghost actors delete volume shadow copies.

    Mitigations

    The FBI, CISA, and MS-ISAC recommend organizations reference their #StopRansomware Guide and implement the mitigations below to improve cybersecurity posture on the basis of the Ghost ransomware activity. These mitigations align with the Cross-Sector Cybersecurity Performance Goals (CPGs) developed by CISA and the National Institute of Standards and Technology (NIST). The CPGs provide a minimum set of practices and protections that CISA and NIST recommend all organizations implement. CISA and NIST based the CPGs on existing cybersecurity frameworks and guidance to protect against the most common and impactful threats, tactics, techniques, and procedures. Visit CISA’s CPGs webpage for more information on the CPGs, including additional recommended baseline protections.

    • Maintain regular system backups that are known-good and stored offline or are segmented from source systems [CPG 2.R]. Ghost ransomware victims whose backups were unaffected by the ransomware attack were often able to restore operations without needing to contact Ghost actors or pay a ransom.
    • Patch known vulnerabilities by applying timely security updates to operating systems, software, and firmware within a risk-informed timeframe [CPG 1.E].
    • Segment networks to restrict lateral movement from initial infected devices and other devices in the same organization [CPG 2.F].
    • Require Phishing-Resistant MFA for access to all privileged accounts and email services accounts.
    • Train users to recognize phishing attempts.
    • Monitor for unauthorized use of PowerShell. Ghost actors leverage PowerShell for malicious purposes, although it is often a helpful tool that is used by administrators and defenders to manage system resources. For more information, visit NSA and CISA’s joint guidance on PowerShell best practices.
      • Implement the principle of least privilege when granting permissions so that employees who require access to PowerShell are aligned with organizational business requirements.
    • Implement allowlisting for applications, scripts, and network traffic to prevent unauthorized execution and access [CPG 3.A].
    • Identify, alert on, and investigate abnormal network activity. Ransomware activity generates unusual network traffic across all phases of the attack chain. This includes running scans to discover other network connected devices, running commands to list, add, or alter administrator accounts, using PowerShell to download and execute remote programs, and running scripts not usually seen on a network. Organizations that can successfully identify and investigate this activity are better able to interrupt malicious activity before ransomware is executed [CPG 3.A].
      • Ghost actors run a significant number of commands, scripts, and programs that IT administrators would have no legitimate reason for running. Victims who have identified and responded to this unusual behavior have successfully prevented Ghost ransomware attacks.
    • Limit exposure of services by disabling unused ports such as, RDP 3398, FTP 21, and SMB 445, and restricting access to essential services through securely configured VPNs or firewalls.
    • Enhance email security by implementing advanced filtering, blocking malicious attachments, and enabling DMARC, DKIM, and SPF to prevent spoofing [CPG 2.M].

    Validate Security Controls

    In addition to applying mitigations, the FBI, CISA, and MS-ISAC recommend exercising, testing, and validating your organization’s security program against the threat behaviors mapped to the MITRE ATT&CK for Enterprise framework in this advisory.

    To get started:

    1. Select an ATT&CK technique described in this advisory (see Table 3 to Table 13).
    2. Align your security technologies against the technique.
    3. Test your technologies against the technique.
    4. Analyze your detection and prevention technologies’ performance.
    5. Repeat the process for all security technologies to obtain a set of comprehensive performance data.
    6. Tune your security program, including people, processes, and technologies, based on the data generated by this process.

    Reporting

    Your organization has no obligation to respond or provide information back to the FBI in response to this joint advisory. If, after reviewing the information provided, your organization decides to provide information to the FBI, reporting must be consistent with applicable state and federal laws.

    The FBI is interested in any information that can be shared, to include logs showing communication to and from foreign IP addresses, a sample ransom note, communications with threat actors, Bitcoin wallet information, and/or decryptor files.

    Additional details of interest include a targeted company point of contact, status and scope of infection, estimated loss, operational impact, date of infection, date detected, initial attack vector, and host and network-based indicators.

    The FBI, CISA, and MS-ISAC do not encourage paying ransom as payment does not guarantee victim files will be recovered. Furthermore, payment may also embolden adversaries to target additional organizations, encourage other criminal actors to engage in the distribution of ransomware, and/or fund illicit activities. Regardless of whether you or your organization have decided to pay the ransom, the FBI and CISA urge you to promptly report ransomware incidents to FBI’s Internet Crime Complain Center (IC3), a local FBI Field Office, or CISA via the agency’s Incident Reporting System or its 24/7 Operations Center (report@cisa.gov) or by calling 1-844-Say-CISA (1-844-729-2472).

    Disclaimer

    The information in this report is being provided “as is” for informational purposes only. The FBI, CISA, and MS-ISAC do not endorse any commercial entity, product, company, or service, including any entities, products, or services linked within this document. Any reference to specific commercial entities, products, processes, or services by service mark, trademark, manufacturer, or otherwise, does not constitute or imply endorsement, recommendation, or favoring by the FBI, CISA, and the MS-ISAC.

    Version History

    February 19, 2025: Initial version.

    MIL Security OSI –

  • MIL-OSI Security: Anchorage Man Sentenced to Over 11 Years for Attempting to Coerce a Minor

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

    ANCHORAGE, Alaska – An Anchorage man was sentenced today to over 11 years in prison and will serve the rest of his life on supervised release for attempting to coerce and entice a minor in 2023.

    According to court documents, in early July 2023, Benjamin Roundy, aka “Aleks” or “Alekzander Marko,” 43, responded to a public group chat post on an internet-based app by an individual who identified herself as a 13-year-old living in Anchorage. The group chat post was actually made by an undercover agent.

    Court documents explain that Roundy communicated with the undercover agent for nearly a month, first on the app and then via text message, and he initiated sexual conversations. Roundy discussed sexual acts he wanted to perform on the individual, who be believed to be a child, and made repeated requests for explicit photos of her.

    On Aug. 4, 2023, Roundy asked the undercover agent to meet in person at the parking lot of a grocery store in Anchorage. The undercover agent told Roundy she was going to walk home from a friend’s house, and Roundy asked what street the friend lived on. Shortly after learning the fictional address of the friend, the defendant left his home to meet the undercover agent, who he thought was a minor.

    Court documents further explain that Roundy texted the undercover agent instructions on where to meet him. When he received no response to his instructions, Roundy drove to a parking lot where he could see the street of the fictitious friend. Law enforcement arrested Roundy in the parking lot shortly thereafter and discovered a new bottle of personal lubricant and condoms in his vehicle.

    The investigation revealed thousands of images and videos depicting child sexual abuse on Roundy’s electronic devices and data detailing his online presence, which included searches for child sexual abuse materials (CSAM) and related terms.

    On April 25, 2024, Roundy pleaded guilty to one count of attempted coercion and enticement of a minor.

    “Mr. Roundy’s conduct was heinous, as he tried to meet with who he believed was an underage girl in Anchorage to engage in sex, sought explicit images of the child, and obtained graphic images and videos depicting the sexual abuse of other minors for years,” said First Assistant U.S Attorney Kathryn R. Vogel for the District of Alaska. “Our office’s commitment to safeguarding Alaska’s children from those who seek to exploit their innocence is unwavering. We will relentlessly pursue justice by working with law enforcement to identify, investigate and hold accountable anyone who targets children.”

    “The defendant posed a significant threat to children in Alaska and abroad, as demonstrated by his disturbing pattern of conduct involving child exploitation,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Even in the darkest corners of the Internet, the FBI’s Child Exploitation and Human Trafficking Task Force will find a way to seek justice for our most vulnerable.”

    The FBI and Anchorage Police Department investigated this case as part of the FBI’s Child Exploitation and Human Trafficking Task Force.

    Assistant U.S. Attorney Adam Alexander of the District of Alaska and Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.

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

    ###

    MIL Security OSI –

  • MIL-OSI Security: Twenty Years Later, FBI Continues to Pursue Information on the Disappearance of Danielle Imbo and Richard Petrone, Jr.

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

    The FBI continues to seek the public’s assistance as we investigate the disappearance of Danielle (Ottobre) Imbo and Richard Petrone, Jr., 20 years ago today.

    Imbo and Petrone were last seen in the late evening hours of Saturday, February 19, 2005, leaving a bar on Philadelphia’s South Street for Petrone’s black 2001 Dodge Dakota pickup truck with the license plate YFH 2319.

    An extensive investigation to date has generated some promising leads; however, neither they nor the vehicle have ever been located.

    Danielle was last seen wearing a dark colored jacket, cream colored sweater, and blue jeans and carrying a two-handle black purse at the time of her disappearance. She has worked as a loan mortgage processor.

    Richard was last seen wearing a gray Polo brand sweatshirt and blue jeans. He has a tattoo of the word “Angela” on his left arm and a tattoo of clowns on his right arm.

    “Today marks a somber 20 years since this tragic disappearance and their case exemplifies that the passage of time does not diminish our pursuit of justice,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Our office remains unwavering in seeking justice for Danielle and Richard, their loved ones, and our city.”

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

    If you have any information concerning this person, please contact your local FBI office or the nearest American Embassy or Consulate.

    FBI Philadelphia can be reached at (215) 418-4000.

    MIL Security OSI –

  • MIL-OSI Security: Fifty-Two-Month Prison Sentence for a D.C. Convicted Felon Who Traveled to the Jersey Shore to Rob an Overnight Pharmacy

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

               WASHINGTON – Ashawntea Henderson, 32, of Washington, D.C., was sentenced today in U.S. District Court in Washington D.C. to 52 months in federal prison for participating in an early morning robbery of a drug store at the Jersey Shore. During the May 2020 robbery, he and his co-conspirators jumped the counter, overpowered the night pharmacist, stole thousands of prescription narcotics, and then – as they attempted to flee to the District – crashed into a responding police cruiser.

               The sentencing was announced U.S. Attorney Edward R. Martin, FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division, and FBI Special Agent in Charge Terence Reilly of the Newark Field Office.

                Henderson pleaded guilty on October 30, 2024, to interference of commerce by robbery (Hobbs Act robbery). In addition to the 52-month prison sentence, Judge Amy Berman Jackson ordered Henderson to serve three years of supervised release.

    According to court documents, Henderson and his co-conspirators researched potential targets including Walgreens and CVS pharmacies which were open all night. On May 9, 2020, Henderson and others drove more than 200 miles from Washington, D.C. to a Walgreens Pharmacy on State Road 33, in Neptune, New Jersey.

    At 3:09 a.m., Henderson and two others dressed in masks and gloves entered the Walgreens. All three jumped over the pharmacy counter and demanded codeine, Adderall, and Percocet. One of the co-conspirators grabbed the night pharmacist, demanded that he open the locked cabinets containing additional pills, and forced the pharmacist to assist them. After grabbing thousands of prescription medicines – including Oxycodone, morphine, amphetamine, and Nucynta – Henderson and the two co-conspirators fled in a black Nissan Altima operated by a fourth co-conspirator. At one point, the Nissan collided with a responding police officer’s patrol car but continued at high speed back to Washington D.C.

    After returning to the District, as they celebrated at a hotel, one of the co-conspirators received a text from a known drug distributor asking the price for a drug of the same type stolen from Neptune, New Jersey. The co-conspirator and the drug distributor continued to exchange texts about the sale of drugs for the following weeks.

               Henderson is currently serving a five-year prison sentence in Maryland in connection with his 2022 possession of a firearm. 

               The case was investigated by the FBI Washington Field Office’s Violent Crimes Task Force and the Neptune Township Police Department. The matter is being prosecuted by AUSAs Justin Song, Sarah Martin and Cameron Tepfer.

    23cr190

    MIL Security OSI –

  • MIL-OSI Security: Oregon Man Pleads Guilty in Swatting and Bomb Threats Scheme That Targeted Jewish Hospitals in New York City and Long Island

    Source: Office of United States Attorneys

    One Hospital Entered Lockdown and Partially Evacuated After Defendant’s Bomb Hoax

    Earlier today in federal court in Brooklyn, Domagoj Patkovic pleaded guilty to conspiring to make threats concerning explosives and conveying false information concerning explosives.  The proceeding was held before United States District Judge Ramon E. Reyes.  When sentenced, Patkovic faces up to 15 years in prison.  Patkovic was charged in August 2024. 

    John J. Durham, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.

    “As he admitted today, the defendant intentionally targeted Jewish hospitals and care centers in our District with bomb threats.  In doing so, he needlessly endangered patients and staff and diverted critical law enforcement resources from their core mission of keeping our community safe,” stated United States Attorney Durham.  “We will prosecute dangerous bomb threats and swatting schemes to the fullest extent of the law.”

    Mr. Durham expressed his appreciation to the Federal Bureau of Investigation, New York Field Office, the New York City Police Department, Nassau County Police Department and the U.S. Attorney’s Office for the District of Oregon for their assistance on the case.

    As set forth in the indictment and in court filings, beginning at least as early as May 2021, the defendant and others made anonymous phone calls in which they made violent threats, including threats to detonate explosive devices, to Jewish hospitals and care centers within the Eastern District of New York, among other targets throughout the United States.

    The defendant himself made threats in at least six separate calls to hospitals and on a call with local law enforcement who had responded to a 911 notification from one of the hospitals.  The defendant livestreamed the calls to others on an online social media and electronic communications service.  On several occasions, local police responded to the scene and conducted bomb sweeps. On at least one occasion in September 2021, the hoax bomb threat resulted in a partial evacuation and lockdown of an entire hospital on Long Island.  No explosive devices were ultimately found in any of the locations.

    The government’s case is being handled by the Office’s National Security & Cybercrime Section.  Assistant United States  Attorneys Alexander A. Solomon, Laura Zuckerwise and Andrew D. Reich are in charge of the prosecution, with assistance from Trial Attorney James Donnelly of the National Security Division’s Counterterrorism Section and Paralegal Specialist Wayne Colon. 

    The Defendant:

    DOMAGOJ PATKOVIC 
    Age: 31
    Portland, Oregon

    E.D.N.Y. Docket No. 24-CR-317 (RER)

    MIL Security OSI –

  • MIL-OSI: DTEX Systems Announces Collaboration with AWS Generative AI Innovation Center

    Source: GlobeNewswire (MIL-OSI)

    SAN JOSE, Calif., Feb. 19, 2025 (GLOBE NEWSWIRE) — DTEX Systems, the trusted leader of insider risk management, today announced that it has been selected to collaborate with Amazon Web Services (AWS), on its ​​Generative AI Innovation Center. This collaboration will allow DTEX to accelerate the availability of its generative AI capabilities to proactively prevent and detect insider threats, while preserving user privacy.

    Through this collaboration, DTEX’s Ai³ Risk Assistant will achieve general availability on Amazon Bedrock, making it one of the first risk generative AI assistant partners to be available on the service. DTEX and AWS will also work together to fast-track a new generative AI and insider risk prototype that will scale semantic search for insider risk analysts, allowing analysts to focus on high-value tasks rather than manual data exploration.

    “We at DTEX are committed to using emerging technologies, such as generative AI, to combat the ever-evolving insider threat landscape,” said Marshall Heilman, CEO of DTEX Systems. “Working closely alongside the expert data scientists and developers at AWS, we are further cementing our status as the leading insider risk and data loss prevention solution that is powered by AI.”

    The AWS Generative AI Innovation Center supports companies, such as DoorDash, PGA TOUR, and Thomas Reuters, to progress and bring their corresponding generative AI technologies to market, with assistance from leading AWS data scientists and developers to fast-track the timeline. Support from AWS also includes the building of prototypes and embedding advanced capabilities into DTEX’s generative AI offerings.

    “Very excited about AWS’s Generative AI Innovation Center collaboration with DTEX Systems to transform the cybersecurity industry,” said Sri Elaprolu, Director at the AWS Generative AI Innovation Center. “DTEX Systems is launching Ai³ (A.I. Assisted Insider Risk Investigations), a platform that helps analysts interact with their data in a conversational manner while automating and streamlining the investigation workflow. Ai³ leverages Bedrock, Claude, and OpenSearch Serverless to automate analyst’s work, including surfacing relevant dashboards, retrieving summaries of and generating risk profiles, and running regular risk assessments to provide the summarized insights to analysts for final decision-making. A powerful example of how generative AI can remove manual, repetitive tasks so employees can focus on strategic, high value actions.”

    In February 2024, DTEX announced the launch of the Ai³ Risk Assistant, making them the first organization to leverage generative AI as a tool to proactively combat and detect insider threats. As a feature within the InTERCEPT™ platform, it processes natural language to provide insights into potential insider risk and intent.

    To learn more about DTEX Systems, please visit www.dtexsystems.com.

    About DTEX Systems
    As the trusted leader of insider risk management, DTEX transforms enterprise security by displacing reactive tools with a proactive solution that stops insider risks from becoming data breaches. DTEX InTERCEPT™ consolidates Data Loss Prevention, User Activity Monitoring, and User Behavior Analytics in one lightweight platform to enable organizations to achieve a trusted and protected workforce. Backed by behavioral science, powered by AI, and used by governments and organizations around the world, DTEX is the trusted authority for protecting data and people at scale with privacy by design.

    To learn more about DTEX, please visit dtexsystems.com

    Connect with DTEX: LinkedIn | Twitter | YouTube

    Media Contact
    Mariah Gauthier
    dtex@highwirepr.com

    The MIL Network –

  • MIL-OSI Security: Former Reno Police Officer Indicted for Civil Rights Violations

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

    RENO – A former Reno Police Department officer made his initial court appearance today for allegedly depriving two individuals of their civil rights under color of law by violating their right to be free from unreasonable search and seizure.

    A federal grand jury returned an indictment charging Tyler Michael Baehr, 30, of Reno, with two counts of depravation of rights under color of law. Baehr appeared before United States Magistrate Judge Craig S. Denney who scheduled a jury trial to begin April 8, 2025, before United States District Judge Miranda M. Du.

    According to allegations contained in the indictment and statements made in court, on December 31, 2023, Baehr willfully deprived an individual of the right to be free from unreasonable search and seizure by taking her cellular phone during a routine traffic stop and unlawfully seizing sexually explicit photos of her from her phone. On August 12, 2024, Baehr willfully deprived another individual of the right to be free from unreasonable search and seizure by taking her cellular phone during a routine traffic stop and unlawfully searching through her private photos and messages.

    If convicted, Baehr faces the maximum statutory penalty of 2 years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.

    Acting United States Attorney Sue Fahami and Acting Special Agent in Charge Jeremy N. Schwartz for the FBI made the announcement.

    This case was investigated by the FBI and Sparks Police Department. Assistant United States Attorney Andolyn Johnson is prosecuting the case.

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

    ###

     

    MIL Security OSI –

  • MIL-OSI Security: California Man Who Molested Teen on Flight Sentenced to Two Years in Prison

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

    Seattle – A 42-year-old Los Angeles County, California man was sentenced today in U.S. District Court in Seattle to two years in prison for abusive sexual contact aboard an aircraft enroute to Seattle from Burbank, California, announced Acting U.S. Attorney Teal Luthy Miller. Justin Baker was arrested March 14, 2024, when the Alaska Airlines plane arrived at SEA.  Baker has been in custody since the jury returned its guilty verdict on October 23, 2024.  At sentencing U.S. District Judge John C. Coughenour imposed the maximum sentence allowed by law saying, “I was particularly struck by the candor of the victim and her bravery in testifying.”

    “This was a calculated and predatory sexual assault on an 18-year-old girl,” said Acting U.S. Attorney Miller. “Mr. Baker underestimated the victim’s strength in testifying, as well as the commitment we have in the Western District of Washington to hold these aircraft offenders accountable.”

    According to records filed in the case and testimony at trial, Baker was in the middle seat, with the victim seated to his right next to the wall of the plane. Baker learned the victim was preparing to go to college and was just 18 years old. According to testimony at trial, Baker showed the teen sexually explicit text messages he had on his phone and then draped his jacket over his lap as well as her lower body. The victim attempted to move away from Baker and closer to the wall. He reached under the jacket and groped her leg. Despite the victim saying “No” and moving away when he first tried to touch her, he continued to grope her genitals over her clothing. Then he reached into her top and groped her breast

    Ultimately, the victim got out of her seat to contact the flight crew. As she tried to pass by Baker, he groped her buttocks and pulled her back down into her seat. Ultimately the victim was able to leave and report the assault.

    Speaking in court today, Assistant United States Attorney Grace Zoller said Baker, “treated the victim like an object… He dehumanized her.”

    The victim shared how the assault has “shattered the trajectory of her life.” She told the court about anxiety around airports and flying, and how her family and loved ones “have watched me change in ways I have never imagined.” Her goal she said is to “hold Baker accountable.”

    Judge Coughenour said he was imposing the maximum two-year sentence because of the “seriousness of the crime, the harm to the victim and the danger (Baker) poses to the community.”

    When released from prison, Baker will be on five years of federal supervision and will be required to register as a sex offender.

    The case was investigated by the FBI and the Port of Seattle Police. The case was prosecuted by Assistant United States Attorneys Kristine Foerster and Grace Zoller.

    MIL Security OSI –

  • MIL-OSI Security: Defense News: Navy Region EURAFCENT sweeps Retention Excellence Awards for FY24

    Source: United States Navy

    Commander, Navy Region EURAFCENT, Naval Support Activity (NSA) Bahrain, Naval Support Activity Naples, Naval Air Station (NAS) Sigonella, Naval Support Activity Souda Bay, and Naval Support Facility (NSF) Deveselu all received retention recognition.

    The Retention Excellence Awards evaluation is conducted on 19 platforms and is earned by commands that meet or exceed their specified platforms’ reenlistment rate benchmarks and do not exceed their specified platforms’ attrition rate benchmarks for at least two quarters.

    Commander Navy Region Europe, Africa, and Central, Rear Adm. Brad Collins, remarked on the excellence and talent across the region at a time when it is most needed. Collins said, “We live in critical times, where threats to American security are ever-present. We rely heavily on our qualified, subject matter experts to ensure we answer the Nations call to deter, protect, and sustain a combat-ready force. Retaining skilled operators is of the highest importance at this critical juncture. ”

    NSA Bahrain not only received the REA for a seventh consecutive year but has also received the first Best-In-Class (BIC) distinction for the large installation category. NSA Bahrain achieved a 68% or higher retention rate and in honor of their achievement, they have been authorized to fly a blue pennant on their installation.

    In a press release, Capt. Zachariah Aperauch, commanding officer of NSA Bahrain, stated “Our installation earning the REA for the seventh straight year and first-ever best-in-class is a remarkable achievement; one that is shared by the entire team, from our most junior Sailors to our most senior leaders. The Navy is able to retain the highest-caliber talent because of this installation’s commitment to development and excellence.”

    Navy Region EURAFCENT received the Legacy REA, representative of their installations and have been authorized to fly a gold pennant. NSA Naples, NAS Sigonella, NSA Souda Bay, and NSF Deveselu met the criteria required for BIC consideration and have been authorized to fly a gold pennant on their installations, in recognition of their achievement.
    Each Sailor within Navy Region EURAFCENT, whether located in NSF Deveselu or NSA Souda Bay is an integral part of the larger mission.

    Collins stated, “The fervent commitment of the Sailors throughout the largest Navy Region, a region that spans three combatant commands, is needed to execute decisive and timely support. The Retention Excellence Awards are a testament to every Sailor’s dedication to the mission. Leadership’s ability to encourage retention along with the institutional knowledge and expertise that it preserves is what keeps our operations not only running but constantly improving.”

    The retention requirements to receive these awards take into account not only retention but also attrition rates, or Sailors who do not remain in the Navy for various circumstances. Each installation and command cannot exceed a certain percentage of attrition, based on a sliding scale of personnel density and makeup. For example, Sailors who have been in the Navy six years or less are considered ‘Zone A’ and an installation must remain at or below a 4% attrition rate amongst their 1-6 year Sailors in order to be eligible for the REA. Taking into consideration attrition rates ensures the data for retention accurately shows a positive trend in manning numbers.

    Navy Region EURAFCENT provides mission-critical logistics and support to the warfighter, their families, and the fleet across seven countries, enabling U.S., allied, and partner nation forces to be where they are needed, when they are needed to maintain security, stability, and freedom of navigation in the European, African, and Central Command areas of responsibility.

    MIL Security OSI –

  • MIL-OSI: CDPQ announces increase to previously announced sale of common shares of Intact Financial

    Source: GlobeNewswire (MIL-OSI)

    MONTREAL, Feb. 19, 2025 (GLOBE NEWSWIRE) — CDPQ today announced that it has increased the size of its previously announced sale of common shares of Intact Financial Corporation (TSX: IFC). Pursuant to the amended terms, CDPQ has agreed to sell 3,577,000 common shares, representing approximately 2.0% of the issued and outstanding common shares of Intact as of February 19, 2025.

    The common shares are being sold at a gross price of $278.60 per share, which has been underwritten by CIBC Capital Markets and National Bank Financial. CDPQ expects to receive gross cash proceeds of approximately $996,552,200 from the offering.

    ABOUT CDPQ
    At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ’s net assets totalled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

    CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries. 

    ABOUT INTACT FINANCIAL CORPORATION
    Intact Financial Corporation (TSX: IFC) is the largest provider of Property and Casualty (P&C) insurance in Canada, a leading Specialty lines insurer with international expertise and a leader in Commercial lines in the UK and Ireland. The business has grown organically and through acquisitions to almost $24 billion of total annual operating direct premiums written (DPW).
    In Canada, Intact distributes insurance under the Intact Insurance brand through agencies and a wide network of brokers, including its whollyowned subsidiary BrokerLink. Intact also distributes directly to consumers through the belairdirect brand and affinity partnerships. Additionally, Intact provides exclusive and tailored offerings to high-net-worth customers through Intact Prestige. In the US, Intact Insurance Specialty Solutions provides a range of Specialty insurance products and services through independent agencies, regional and national brokers, wholesalers and managing general agencies. Across the UK, Ireland, and Europe, Intact provides Personal, Commercial and/or Specialty insurance solutions through the RSA, 123.ie, NIG and FarmWeb brands.

    For more information
    MEDIA RELATIONS TEAM
    CDPQ
    + 1 514 847-5493
    medias@cdpq.com

    Caroline Audet
    Manager, Media Relations and Public Affairs, Intact Financial
    Intact Financial Corporation
    416 227-7905/514 985-7165
    media@intact.net

    The MIL Network –

  • MIL-OSI: YPrime Announces Advanced eCOA Localization Capabilities

    Source: GlobeNewswire (MIL-OSI)

    MALVERN, Pa., Feb. 19, 2025 (GLOBE NEWSWIRE) — YPrime, the leading pioneer in clinical trial technology, today unveiled significant enhancements to its electronic clinical outcome assessment (eCOA) platform, aimed at revolutionizing the globalization of clinical trials. At the heart of these enhancements is YPrime’s cutting-edge AI Migration Tool, which innovates the translation process, significantly improving speed and accuracy in multi-language clinical trials.

    In today’s interconnected world, clinical trials demand a global approach. YPrime’s enhanced eCOA localization capabilities address this need by providing a seamless, efficient process for implementing multilingual deployments. The company’s innovative new approach empowers sponsors to launch studies faster and with greater precision by successfully automating an often manual and error-prone step in the localization process—migration. By eliminating this common cause of on-screen content issues that can plague eCOA localization efforts, this advancement paves the way for more efficient and cost-effective global clinical research.

    “Our eCOA localization capabilities are a significant leap in clinical trial efficiency,” explained Jonathan Norman, Director of Localization at YPrime. “By accelerating eCOA localization with modern approaches to key parts of the process such as migration, we empower sponsors to reach a broader, more diverse patient population while adhering to stringent timelines. Our unique approach drives the collection of high-quality, representative data on an international scale. Ultimately, our goal is to support patient access to trials, wherever they are in the world, and remove associated operational barriers for trial sponsors, leading to better health outcomes across diverse global populations.”

    YPrime’s eCOA localization capabilities combine cutting-edge technology with deep industry expertise to streamline global clinical trials. Leveraging advanced AI-powered large language model (LLM) tools, YPrime accelerates the overall localization process while maintaining exceptional linguistic precision. Acknowledging the importance of human expertise, YPrime integrates automated workflows with expert-driven linguistic review to ensure target language content is both accurately presented and compliant with industry expectations.

    Additionally, YPrime offers an extensive repository of pre-translated, culturally validated eCOA questionnaires, enabling faster, more efficient study launches and reducing the complexities of global trial execution.

    With nearly two decades of experience, solutions in over 250 languages, and support in more than 100 countries, YPrime has positioned itself as the ultimate enabler of faster, more flexible, and high-quality eCOA for global clinical trials. The company’s localization workflows and rigorous quality assurance processes deliver unparalleled accuracy with cost-effective solutions that prioritize client trust and trial success. For more information about YPrime’s advanced eCOA localization capabilities and how they can accelerate your clinical trial process, contact YPrime at marketing@yprime.com or visit yprime.com/ecoa.

    About YPrime  
    YPrime simplifies clinical trials with eCOA, IRT, and eConsent solutions that combine speed, flexibility, and quality. The YPrime eCOA platform enhances patient compliance with an intuitive app and easy-to-use design, streamlines site workflows through a powerful eCOA portal, integrates seamlessly with connected devices, and supports sponsors with real-time dashboards for better decision-making. A pre-validated and configurable eCOA platform delivers study startup 47% faster than industry benchmarks, with AI-supported localization that accelerates globalization. Delivering ~50% faster IRT startup times, eConsent that drives engagement, and quality metrics 55% above industry standards, YPrime is trusted by top pharma leaders and emerging biotech companies alike. With nearly two decades of experience, solutions in 250+ languages, and support in 100+ countries, YPrime is your partner in solving for certainty. Visit www.yprime.com or email marketing@yprime.com. 

    Media Contact          
    Terry Rehm  
    Head of Thought Leadership and Public Relations, YPrime  
    trehm@yprime.com
    862-288-0329 

    The MIL Network –

  • MIL-OSI NGOs: Egypt: Release social media users detained for supporting calls to end President Abdel Fattah al-Sisi’s rule  

    Source: Amnesty International –

    Egyptian authorities must immediately release dozens of people arbitrarily detained and prosecuted on terrorism-related charges, solely for posting online content supporting calls for an end to President Abdel Fattah al-Sisi’s rule, Amnesty International said today. The crackdown took place ahead of the anniversary of the 25 January 2011 revolution, a time when authorities routinely escalate repression to prevent any peaceful protests.

    Since late December 2024, security forces have arbitrarily arrested at least 59 people, including at least four women, for sharing content from the Facebook page “Revolution of the Joints” or interacting on a Telegram channel with the same name. Both platforms are critical of President Abdel Fattah al-Sisi’s government and demand political change. Security forces only brought the detainees before prosecutors from 8 to 12 February, following weeks of enforced disappearance or incommunicado detention, during which some were subjected to beatings.

    “Rather than obsessively arresting dozens of people across the country every year at this time, the Egyptian authorities must address the root causes of popular discontent, including economic hardship. It is incredible how the government has the audacity to lock people up for complaining about its failure to guarantee people’s economic, social and cultural rights amid a deteriorating standard of living,” said Mahmoud Shalaby, Egypt Researcher at Amnesty International.

    “Rather than obsessively arresting dozens of people across the country every year at this time, the Egyptian authorities must address the root causes of popular discontent, including economic hardship” – Mahmoud Shalaby, Egypt Researcher

    “People must be allowed to freely express their views on the government without the risk of arrest and arbitrary detention.”

    Amnesty International documented the cases of seven male detainees who were arbitrarily arrested between 23 December 2024 and 16 January 2025 in connection with content they posted on social media. Security forces arrested five of them at their homes and two on the streets in the governorates of Mansoura, Suez, Cairo, Qualyubiya, Damanhur and Alexandria, according to their lawyers.

    The lawyers told Amnesty International that after their arrest, the authorities escorted the men to National Security Agency (NSA) facilities in their respective governorates. NSA agents held the men in incommunicado detention for periods ranging from four to six weeks before presenting them before the Supreme State Security Prosecution (SSSP) between 8 and 12 February. Two of the detainees were subjected to enforced disappearance for 28 and 41 days, as their relatives inquired about their whereabouts at local police stations, but the authorities denied their presence and refused to reveal any information about their fate.

    Prosecutors questioned the detainees about their social lives, political affiliations, and the reasons for publishing content calling for the change of the government. The men explained that the main drive for posting such content was the ongoing economic crisis and their struggle to meet basic needs amid rising prices.

    The SSSP prosecutors investigated the men on terrorism-related charges including “joining a terrorist group,” “spreading false news,” “inciting committing a terrorist crime,” and “committing a crime of funding terrorism.” Prosecutors ordered the pretrial detention of the seven for 15 days pending investigations.

    During their interrogations by the SSSP, the men told prosecutors that NSA agents questioned them while blindfolded and/or handcuffed and without a lawyer present. Four of the men reported being subjected to verbal insults and beatings at least once, while two described being subjected to electric shocks. However, prosecutors have not opened any investigations into these claims.

    “There will be no end in sight for the gross violations committed by Egyptian security forces such as enforced disappearance and torture or other ill-treatment as long as SSSP prosecutors continue to be complicit by covering up such abuses instead of investigating them,” Mahmoud Shalaby said.

    Background

    This is the second time in the last six months that the Egyptian authorities have arbitrarily arrested people for expressing their support for a change in government. In July 2024, Egyptian security forces arbitrarily detained 119 individuals, including at least seven women and one child, in at least six governorates, in connection to online calls for a “Dignity Revolution” on 12 July. Detainees posted on their social media accounts calling for protests and political change due to price hikes and the then power cuts.

    MIL OSI NGO –

  • MIL-OSI: Taitiko Announces Strategic Update: New Real-Money Competitions to Launch on Taitiko ARENA

    Source: GlobeNewswire (MIL-OSI)

    FAMAGUSTA, Cyprus, Feb. 19, 2025 (GLOBE NEWSWIRE) — Taitiko, the emerging leader in Web3 gaming, is poised to make a major announcement today, unveiling the upcoming launch of real-money competitions on its popular Taitiko ARENA platform. With over 100,000 active users already engaged in skill-based mini-games via Telegram, the introduction of real-money competitions will elevate the gaming experience, offering players the opportunity to earn tangible rewards in exchange for their skills and achievements.

    This milestone is part of Taitiko’s ongoing strategy to create a sustainable, player-centric ecosystem within the Web3 space. “We’re committed to prioritizing genuine player engagement and innovation, not just speculative tokenomics,” said Alex Pei Fresneda, spokesperson for Taitiko. “The new real-money competitions will enhance the fun and competition in our platform while ensuring that users can benefit directly from their gaming experience.”

    A New Era for Taitiko ARENA

    As part of Taitiko’s broader vision, the integration of real-money competitions will provide a dynamic new avenue for players to showcase their abilities and compete against a global community. The update, set for release in the coming weeks, will enhance the user experience by adding financial stakes to the already competitive and skill-driven environment of Taitiko ARENA.

    “We want to give players an opportunity to turn their skills into real rewards,” Fresneda added. “This update is just the beginning of a series of exciting developments for Taitiko in 2025.”

    Strengthening Industry Position

    Taitiko’s growth is fueled by its strategic partnerships with prominent entities such as DEXTools, Tonstation Games, SidusPad, and Decubate. These collaborations have enhanced Taitiko’s technological capabilities and broadened its reach within the blockchain and gaming communities, setting the stage for further expansion.

    Additionally, the ongoing development of Taitiko Party, a multiplayer desktop game for both Windows and Mac, is progressing at full speed, with the game nearing completion at 80%. Taitiko’s upcoming token launch and plans for a year-long NFT collection further underscore its commitment to delivering both immersive experiences and long-term growth in the Web3 gaming space.

    About Taitiko

    Taitiko is at the forefront of revolutionizing the gaming industry with its innovative approach to Web3 gaming, focusing on player engagement, strategic partnerships, and a sustainable business model. With a growing user base and a clear roadmap, Taitiko aims to lead the next wave of blockchain-powered gaming experiences.

    For more information on Taitiko, visit Taitiko.com.

    Media Contact:

    Alex Pei Fresneda
    info@taitiko.com

    Taitiko Official Website
    Taitiko on X
    Taitiko on Telegram

    Disclaimer: This content is provided by Taitiko. The statements, views, and opinions expressed in this content are solely those of the sponsor and do not necessarily reflect the views of this media platform. We do not endorse, verify, or guarantee the accuracy, completeness, or reliability of any information presented. This content is for informational purposes only and should not be considered as financial, investment, or trading advice. Readers are strongly encouraged to conduct their own research and consult with a qualified financial advisor before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

    Photos accompanying this announcement are available at

    https://www.globenewswire.com/NewsRoom/AttachmentNg/9ac8e0b1-58f1-4721-bee1-cb461d9f6966

    https://www.globenewswire.com/NewsRoom/AttachmentNg/fc3dad94-8f4b-4788-8381-a9feac2b9e9f

    The MIL Network –

  • MIL-Evening Report: Insider threat: cyber security experts on giving Elon Musk and DOGE the keys to US government IT systems

    Source: The Conversation (Au and NZ) – By Frank den Hartog, Professor of Information Systems, Research Chair in Critical Infrastructure, University of Canberra

    A few weeks ago, word started to come out that the newly minted United States Department of Government Efficiency (DOGE) had acquired unprecedented access to multiple US government computer systems.

    DOGE employees – tech billionaire Elon Musk and his affiliates – have been granted access to sensitive personal and financial data, as well as other data critical for national security. This has created a national and international outcry, and serious concerns have been raised about data security, privacy and potential influence.

    A group of 14 state attorneys-general attempted to have DOGE’s access to certain federal systems restricted, but a judge has denied the request.

    Questions of trust

    What are the deeper reasons behind this outcry? After all, Musk is far from the first businessman to gain political power.

    There is, of course, US President Donald Trump himself, alongside many more on both sides of politics. Most of them kept running their businesses at arm’s length and went back to them after a stint in Washington.

    So why are so many people alarmed now, but not before? The key word here is trust. Surveys suggest many people don’t trust Musk with this kind of access.

    Does that mean we trusted the others? The foundation of modern cyber security is not to trust anything or anybody in the first place.

    So while a lack of trust in Musk is one reason for disquiet, another is a lack of trust in the current state of cyber security in US government systems and procedures. And for good reason.

    An insider threat

    The situation in the US raises the spectre of what cyber experts call an “insider threat”. These concern cyber security incidents caused by people who have authorised access to systems and data.

    Cyber security relies on controlling the so-called “CIA triad” of confidentiality, integrity and availability. Insider threats can compromise all three.

    Authentication and subsequent authorisation of access has traditionally been an important measure to prevent cyber incidents from occurring. But apparently, that is not sufficient any more.

    Perhaps the most famous insider incident in history is Edward Snowden’s leak of classified documents from the US National Security Agency in 2013. Australia too has had its share of insider breaches – the 2000 Maroochy Shire attack is still a textbook example.

    Musk and his DOGE colleagues have now become insiders.

    How to reduce the risk of insider threat

    There are plenty of strategies organisations can follow to reduce the risk of insider threats:

    • more rigorous vetting of employees

    • giving users only the bare minimum access and privileges they need

    • continuously auditing who has access to what, and restricting access immediately when needed

    • authenticating and authorising users every time they access a different system or file (this is part of what is called a “zero trust architecture”)

    • monitoring for unusual behaviour regarding insiders accessing systems and files

    • developing and nurturing a cyber-aware culture in the organisation.

    In government systems, the public should be able to trust these procedures are being rigorously applied. However, when it comes to Musk and DOGE, it seems they are not. And that’s where the core of the problem lies.

    Clearances and a lack of care

    DOGE employees without security clearance reportedly have access to classified systems which would normally be considered quite sensitive.

    However, even security clearances offer no iron-clad guarantees.

    Security clearances assume someone can be trusted based on their past. But past performance can never guarantee the future.

    In the US, obtaining and holding a security clearance has become a status symbol. A clearance may also be a golden ticket to high-paying jobs and power, and hence subject to politics rather than independent judgement.

    And it seems little care has been taken to keep users’ access and privileges to a minimum.

    You might think DOGE’s employees, tasked with seeking out inefficiency, would only need read-only access to the US government IT systems. However, at least one of them temporarily had “write” access to the systems of the treasury, according to reports, enabling him to alter code controlling trillions in federal spending.

    It all comes down to trust

    Even if all possible access control and vetting procedures are in place and working perfectly, there will always be the problem of how to declassify information.

    Or to put it another way: how do you make somebody forget everything they knew when their clearance or access is revoked or downgraded?

    What Musk has seen, he can never unsee. And there is only so much that can be done to prevent this knowledge from leaking.

    Even if all procedures to protect against insider threats are followed perfectly (and they aren’t), nothing is 100% secure.

    We would still need a certain level of public trust that the obtained data and information would be dealt with responsibly. Has trust in Musk and his affiliates reached that level?

    According to recent polling, public opinion is still divided.

    Frank den Hartog is the Cisco Research Chair in Critical Infrastructure at the University of Canberra. He is an Adjunct Fellow at the University of New South Wales.

    Abu Barkat Ullah is a steering committee member for the Canberra Cyber Hub and has received several research grants from Australian government and private organisations.

    – ref. Insider threat: cyber security experts on giving Elon Musk and DOGE the keys to US government IT systems – https://theconversation.com/insider-threat-cyber-security-experts-on-giving-elon-musk-and-doge-the-keys-to-us-government-it-systems-250046

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA News: Interview of President Trump and Elon Musk by Sean Hannity, “The Sean Hannity Show”

    Source: The White House

    class=”has-text-align-center”>Roosevelt Room

    11:48 A.M. EST

         Q    Mr. President, great to see you again.

         THE PRESIDENT:  Thank you very much.  Thank you.

         Q    How are you?

         THE PRESIDENT:  Thank you. 

         Q    Elon Musk.

         MR. MUSK:  Hi.

         Q    Great to see you. 

         MR. MUSK:  Thanks.  Thanks for having me.

         Q    I’ve been reading a lot about you.  I’ve got to start with this.  So, he’s working for free with DOGE.  He’s — he’s kind of put a lot of his life on hold, and you sued Twitter a number of years ago.  You just made him pay you $10 million?

         THE PRESIDENT:  That’s right.  That’s right.

         Q    That’s — that’s right.  (Laughs.)

         THE PRESIDENT:  Well, I sued — I sued from long before he had it. 

         MR. MUSK:  Yeah.  Yeah.  (Inaudible.)

         THE PRESIDENT:  And, I mean, they really did a number on me, you know.  And I sued, and they had to pay.  You know, they paid $10 million settlement.

         Q    You’re okay with that?
        
         MR. MUSK:  I mean, I left it up to the lawyers and, you know, the team running Twitter.  So, I said, “You guys do what you think is the right — makes sense.”

         Q    I think it’s funny.

         THE PRESIDENT:  I think —

         Q    Because —

         THE PRESIDENT:  — it’s a very low — I was looking to get much more money than that.
        
         Q    So, you gave him a discount w- — in the lawsuit?

         THE PRESIDENT:  He got — oh, he got a big discount.  I don’t think he even knows about it.

         Q    He’s become one of your — if you read and believe the media — he’s become one of your best friends.  He’s working for free for you.  He’s —

         MR. MUSK:  Well, I love the president.  I just want to be clear about that.  

         Q    You don’t care about that? 

         MR. MUSK:  I — no, I love the pr- — I —

         Q    You love the president? 

         MR. MUSK:  I think — I think President Trump is a good man, and — and he’s, you know — I — I —

         THE PRESIDENT:  That’s the way he said that.  You know, there’s something nice about.  (Laughter.)

         MR. MUSK:  No, it is.  I, you know —

         THE PRESIDENT:  It is.

         MR. MUSK:  Because, I mean, the president has been so — so unfairly attacked in the media.  It’s truly outrageous.  And I’ve sp- — at this point, spent a lot of time with the president, and not once have I seen him do something that was mean or cruel or — or wrong.  Not once. 

         Q    You know, I’ve known him for 30 years.

         MR. MUSK:  Yeah.

         Q    And I’ve never seen anybody take as much as he’s taken.

         MR. MUSK:  Yeah.

         Q    And we’ve discussed this.  And I’m like, “How do you deal with it?”

         THE PRESIDENT:  Did have a choice?  (Laughs.)  I didn’t have a choice.

         Q    Well, you would say that to me.  I’m like, “What — what am I going to do?  Worry about it?”

         THE PRESIDENT:  That’s the only thing I can say.

         Q    And, you know — and then culminating in two assassination attempts, which resulted in your endorsement. 

         MR. MUSK:  Well, I was going to do it anyway, but that was —

         Q    That was it?

         MR. MUSK:  — a precipitating event, yeah.

         THE PRESIDENT:  That speeded it up a little bit?

         MR. MUSK:  Yeah.  Yeah.

         Q    The day of the assassination? 

         THE PRESIDENT:  Nice.  I didn’t know that. 

         MR. MUSK:  Yeah, it just — it sped it up, but I was going to do it anyway.

         Q    Mr. President, with your indulgence, I’m convinced that people only know a little bit about Elon.  I don’t think they know everything about Elon, because as I studied for and prepared for this interview, I learned a lot about you that I didn’t know.  I think people will think about Tesla.  Democrats are demonizing you and — and trying to make the country hate you. 

         I just want people to understand you a little bit better, and the person that you’ve gotten to know and have now put a lot of trust in. 

         THE PRESIDENT:  Sure.

         Q    And, you know, just — let’s go over a little bit of your bio, starting —

         MR. MUSK:  Ah, okay.

         Q    — with PayPal and how you became involved in Tesla and SpaceX and Neuralink —

         MR. MUSK:  This — this could take a while.

         Q    — and all these —

         MR. MUSK:  I mean, you know, I — I think the way you think of me is, like, I’m a technologist and I try to make technologies that improve the world and make life better.

         Q    You can show them your shirt.

         MR. MUSK:  Yeah, and that’s why, like, my t-shirt says “tech support” — (laughter) — because I’m here to provide the president with — with technology support. 

         And now, that — that may seem, like, well, is that a silly thing?  But actually, it’s a very important thing, because the president will make these executive orders, which are very sensible and good for the country, but then they don’t get implemented, you know?

         So, if you take the — for example, all the funding for the migrant hotels, the president issued an executive order: Hey, we need to stop taking taxpayer money and — and paying for luxury hotels for illegal immigrants —

         Q    It’s crazy.

         MR. MUSK:  — which makes no sense.  Like, obviously, people do not want their tax dollars going to — to fund high-end hotels for — for illegals.  And yet, they were still doing that, even as late as last week. 

         And so, you know, we went in there, and we were like, “This is in violation of the presidential executive order.  It needs to stop.” 

         So — so, what we’re — what we’re doing here is — is — one of the biggest functions of the DOGE team is just making sure that the presidential executive orders are actually carried out.  And this is — I just want to point out, this is a very important thing, because the president is the elected representative of the people, so he’s representing the will of the people.  And if the bureaucracy is fighting the will of the people and preventing the pres- — the president from implementing what the people want, then what we live in is a bureaucracy and not a democracy.

         Q    Yeah.  You — you’re both aware — you have to be keenly aware that the media and — and the punditry class — not that — you know, I think you’ve proven they have no power anymore, because they threw everything they had at you, and they didn’t win.  And that was, you know, the New York Times, Washington Post, three networks, every late-night comedy show, two cable channels — they — they just threw — they threw everything — lawfare, weaponization. 

         THE PRESIDENT:  It’s true.

         Q    And now I see they want you two to start — they want a divorce.  They want you two to start hating each other.  And they try — “Oh, President Elon Musk,” for example.  You do know that they’re doing that to you?

         THE PRESIDENT:  Oh, I see it all the time.  They tried it, then they stopped.  That wasn’t — they have many different things of hatred. 

         Actually, Elon called me.  He said, “You know they’re trying to drive us apart.”  I said, “Absolutely.” 

         You know, they said, “We have breaking news: Donald Trump has ceded control of the presidency to Elon Musk.  President Musk will be attending a Cabinet meeting tonight at 8 o’clock.”  (Laughter.)  And I say — it’s just so obvious.  They’re so bad at it. 

         I used to think they were good at it.  They’re actually bad at it, because if they were good at it, I’d never be president because I — I think nobody in history has ever gotten more bad publicity than me. 

         I could do the greatest things; I get 98 percent bad publicity.  I could do — outside of you and a few of your very good friends.  It’s, like, the craziest thing. 

         But you know what I have learned, Elon?  The people are smart.  They get it. 

         MR. MUSK.  Yeah.  They do, actually.  Yeah.

         THE PRESIDENT:  They get it.  They really see what’s happening. 

         MR. MUSK:  Yes.

         Q    And at the end of this interview, I — what I would like is, I — I want people to know the relationship and know more about you. 

         What is the relationship, Mr. President?

         THE PRESIDENT:  Well, I respect him.  I’ve always respected him.  I never knew that he was right on certain things, and I’m usually pretty good at this stuff.  He did Starlink.  He did things that were so advanced and nobody knew what the hell they were. 

         I can tell you, in North Carolina, they had no communication.  They were wiped out.  Those people were — you know, they had rivers in between — land that never saw water, all of a sudden, there was a river and a vicious — like, rapids.  People were dying all over.  They had no communication. 

         They said, “Do you know Elon Musk?”   And they didn’t really know I knew him.  I said, “Yeah.”  They said, “Could you get Starlink?”  It’s, like, the first time I ever heard of it.  I said, “What’s Starlink?”  “A communication system that’s unbelievable.” 

         Q    I have it.

         THE PRESIDENT:  And he — yeah.  And he said — I called him, and I said, “Listen, they really need it.”  And he got, like, thousands of units of this communication, and it saved a lot of lives.  He got it immediately.  And you can’t get it.  I mean, you have to wait a long time to get it.  But he got it to him immediately. 

         And I said, “That’s pretty amazing.”  And I didn’t even know he had it. 

         We watch the rocket ships, and we watch Tesla.

         I think, you know, something that had an effect on me was when I saw the rocket ship come back and get grabbed like you grab a beautiful little baby.  You grab your baby.  It just —

         MR. MUSK:  Just hug the rocket. 

         THE PRESIDENT:  I’d never seen —

         MR. MUSK:  Everyone — right.  Everyone needs (inaudible) —

         Q    You hug the rocket.  You hug the rocket.

         MR. MUSK:  — (inaudible) rockets. 

         THE PRESIDENT:  Yeah.  No, but — and he said, “You know, you can’t really have a rocket program if you’re going to dump a billion dollars into the ocean every time you fly.  You have to save it.”  And he saved it.  First time —

         Q    That’s ever been done.
        
         THE PRESIDENT:  — I’ve ever seen that done.  Now nobody else can do it. 

         If you look at the U.S., Russia, or China, they can’t do it, and they won’t be able to do it for a long time.  He has the technology.  So, you learn — I wanted somebody really smart to work with me, in terms of the country — a very important aspect.  Because, I mean, he doesn’t talk about it.  He’s actually a very good businessman.  And when he talks about the executive orders — and this is probably true for all presidents: You write an executive order and you think it’s done, you send it out; it doesn’t get done.  It doesn’t get implemented.  They don’t implement it. 

         They — maybe they’re from the last administration — and they are, in some cases.  You try and get them out as fast as you can.  But I could — as soon as he said that, I said, “You know, that’s interesting.”  You write a beautiful executive — and you sign it and you assume it’s going to be done, but it’s not.  What he does is he takes it, and with his hundred geniuses — he’s got some very brilliant young people working for him that dress much worse than him, actually —

         MR. MUSK:  Yeah, the do.

         THE PRESIDENT:  — they dress in just t-shirts.  (Laughter.)  You wouldn’t know they have 180 IQ.

         Q    Wait.  Wait.  So, what — he’s — he’s your tech support?

         MR. MUSK:  I —

         THE PRESIDENT:  No, no.  He is —

         MR. MUSK:  I actually virtually am tech support.

         THE PRESIDENT:  He’s much more than that.

         MR. MUSK:  I actually am tech support, though.  But that’s —

         THE PRESIDENT:  But he gets it done.  He’s a leader.  He really is a — he gets it done.  You get a lot of tech people, and you have people, they’re good with tech, but they — he gets it done. 

         You know, I said, in real estate, you had guys that would draw beautiful renderings of a building, and they’d draw the rendering, it would be great, and you’d say, “Great.  When are you starting?”  But they were never able to get it built.  They couldn’t get the finances.  They couldn’t get the approvals.  It would never get done.  And then you have other guys that are able to get it done.  You know, they could just get it done. 

         I was in real estate.  Same thing in this.  He gets it done. 

         So, when he said that — he said, “You know, when you sign these executive orders, a lot of them don’t get done, and maybe the most important ones,” and he would take that executive order that I’d signed, and he would have those people go to whatever agency it was — “When are you doing it?  Get it done.  Get it done.”  And some guy that maybe didn’t want to do it, all of a sudden, he’s signing — he just doesn’t want to bothered.

         Q    Does — do a lot of those executive orders have to be codified into law to — do you need the Republican Congress to follow up?

         THE PRESIDENT:  Yeah, and they will.  A lot of them will be.  Yeah.

         Q    They will?

         THE PRESIDENT:  Look, in the meantime, we have four years.  The beauty is, we have four years.  That’s why I like doing it right at the beginning.  Because an executive order is great.  I mean, the one problem — it’s both good and bad, because when they did all these executive orders, I’ve canceled most of them.  They were terrible.  I mean, we were going to go radical left, communist, okay?  It was crazy.  Their —

         MR. MUSK:  Really crazy.

         THE PRESIDENT:  — executive orders were so bad, if they ever got them codified, you’d never be able to break them.  So, the damage that Biden has done to this country — and it’s not even Biden; it’s the people that circled him in the Oval Office, okay? — but the damage they did to this country, in terms of, let’s say, open borders — you know, there’s so many things, but open borders, where millions of people poured into our country, and hundreds of thousands of those people are criminals.  They’re murderers.  They’re drug dealers.  They’re gang members.  They’re people from prisons from all over the world. 

         And we have a great guy, Tom Homan, and he is doing so incredibly.  You saw the numbers.  They’re down like 96 percent.

         Q    Ninety-five percent.

         THE PRESIDENT:  He is a phenomenal guy.  And Kristi Noem is doing an unbelievable job.  And he wanted her.  He said, “She’s so tough.”  And I said, “I don’t think of her as that way.  You know, she’s very nice.”  He said, “No, she’s so tough.”  And she is.  I see her with the horses.  She’s riding the horse.  Let’s — (laughter) — she’s great. 

         But the team we have is — is really unbelievable. 

         But those executive orders, I sign them, and now they get passed on to him and his group and other people, and they’re all getting done.  We’re getting them done.

         Q    Let me go back a little bit to your background, because —

         MR. MUSK:  Sure.

         Q    — it’s beyond impressive.  You were the chief engineer, for example — you were an early believer in Tesla.  You became the CEO and — and then the chief engineer, which was phenomenal.  SpaceX, same thing, which is unbelievable. 

         I mean, you were the first company — private company to send astronauts successfully into — into space, first private company to send astronauts into orbit. 

         MR. MUSK:  Yeah.

         Q    That’s — that’s pretty deep. 

         THE PRESIDENT:  He’s going to go into orbit soon.

         Q    Okay.

         MR. MUSK:  (Laughs.)  Yeah.

         THE PRESIDENT:  No, he’s going to go to Mars.  He’s going to fly on his —

         Q    Starlink.

         MR. MUSK:  At some point, yeah.

         Q    As in (inaudible) —

         MR. MUSK:  But they say — they always ask me, like, “Do you want to die on Mars?”  And I say, “Well, yes, but not on impact.”  (Laughter.)

         Q    Star- — Starlink is in 100 countries. 

         This is going to be hard.  I feel like I’m interviewing two brothers here.

         MR. MUSK:  You go ahead. 

         Q    Starshield, which could be used for national defense. 

         MR. MUSK:  Yeah, it is already being used for national defense. 

         Q    Then you have a — what is it called?  Optimus, a part of Tesla.

         MR. MUSK:  They’re a robot, yeah.

         Q    A robotic arm.  Then you have an AI arm.  And then you have something that really fascinated me, and it’s called Neuralink. 

         MR. MUSK:  Yes.

         Q    You might help the blind to see and people with spinal cord injuries that they — that they can recover, where in the past — how close is that to becoming a success?

         MR. MUSK:  At Neuralink we’re — we’ve ha- — we’ve implanted Neuralink in three patients so far, who are quadriplegics, and it allows them to directly control their phone and computer just using their mind, just by thinking.  It’s like — so, we call this product Telepathy, so you control your computer and phone just by thinking, and it’s possible to actually control the computer and phone faster than someone who has working hands.

         Then the next step would be to add a second Neuralink implant past the point where these — the neurons are damaged, so that somebody can walk again and so the pe- — they can have full-body functionality restored.  And —

         THE PRESIDENT:  And you like Bobby, right?

         MR. MUSK:  I like Bobby, actually.  Yeah.  I — I supported Bobby Kennedy.  I think he — you know, he’s unfairly maligned as someone who is anti-science.  But I think he — he isn’t.  He just wants to question the science, which is the essence of the science — the scientific method, fundamentally, is about always questioning the science. 

         Q    Well, they didn’t tell us the truth about COVID.

         MR. MUSK:  Correct.

         Q    That’s for sure. 

         MR. MUSK:  Yes. 

         Q    And we learned a lot with the Twitter files.  And that just, then, raises a question.  You’re the richest man in the world.  You may not like that part. 

         THE PRESIDENT:  Yeah.

         Q    You’re pretty competitive.

         MR. MUSK:  I mean, it’s neither here nor there.

         Q    I’ve known you a long time.

         MR. MUSK:  I don’t think it matters.

         Q    But —

         THE PRESIDENT:  That’s why I became president.

         Q    — he’s on your team.

         THE PRESIDENT:  (Inaudible) —

         Q    Well, that’s true.  He can’t top that.

         THE PRESIDENT:  He’s good.  You know, I wanted to find somebody smarter than him.  I searched all over.  I just couldn’t do it.  I couldn’t.  I couldn’t.
        
         Q    You really tried hard.

         THE PRESIDENT:  I couldn’t find anyone smarter, right?  So, we had to — we had to, for the country.

         Q    But this is the thing —

         THE PRESIDENT:  So, we settled on — we settled on this guy.

         MR. MUSK:  Well, thanks for having me.

         THE PRESIDENT:  (Laughs.)  Yeah.

         Q    So —

         MR. MUSK:  I’m just trying to be useful here.

         Q    But this is the interesting — but this is where we are as a so- — a society.  And I — I hate to do this to you, but I’m going to do it anyway.  You’re doing all of these things.  At DOGE, nobody at DOGE gets paid a penny, correct?

         MR. MUSK:  Well, actually, some people are federal employees, so they do. 

         Q    Oh, okay.

         MR. MUSK:  Yeah.  They’re (inaudible).  But it’s fair to say that the software engineers at DOGE could be earning millions of dollars a year and instead of earning a small fraction of that as federal employees.

         Q    Okay.  So, just —

         THE PRESIDENT:  And they’re very committed people. 

         MR. MUSK:  Yes.

         Q    So — you’re — you’re committed to helping the blind see, people with spinal cord injuries recover. 

         MR. MUSK:  Yes.

         Q    You’re committed to getting to Mars.  You’re committed to rescue — you’re going to help rescue, next month, two astronauts that I think were abandoned.  They — they dispute that in an interview.

         THE PRESIDENT:  When are you — when are you getting them?

         MR. MUSK:  At the — at the president’s request, we — or instruction, we are accelerating the return of the astronauts, which was postponed, kind of, to a ridiculous degree.

         THE PRESIDENT:  They got left in space. 

         Q    They’ve been there.  They were supposed to be there eight days.  They’re there almost 300.

         THE PRESIDENT:  Biden. 

         MR. MUSK:  They were put —

         Q    Yeah.

         MR. MUSK:  Yes, they were left up there for political reasons, which is not good. 

         Q    Okay, it’s not good.  Now, if I had the weight and pressure of doing that successfully on my shoulders, I think I’d be, you know — but you — when we spoke before we did this interview, you were very confident.  You think this will be a successful mission. 

         MR. MUSK:  Well, we don’t want to be complacent, but we have brought astronauts back from the space station many times before, and always with success.  So, as long as we’re not complacent —

         THE PRESIDENT:  When are they — when are you going to launch?

         MR. MUSK:  I think it’s about — about four weeks to

    bring them back. 

         Q    About four weeks? 

         MR. MUSK:  Yeah. 

         THE PRESIDENT:  And you have the go-ahead.

         MR. MUSK:  We’re being extremely cautious.

         Q    Yeah.

         THE PRESIDENT:  You now have the go-ahead.

         MR. MUSK:  Yes.  Well, thanks to you —

         THE PRESIDENT:  They didn’t have the go-ahead with Biden. 

         Q    What’s that?

         THE PRESIDENT:  He was going to leave him in space.  I think he was going to leave them in space.

         Q    Well, it’s like the (inaudible) —

         THE PRESIDENT:  He considered it a —

         Q    — growing up, lost in space. 

         THE PRESIDENT:  Yeah, he didn’t want the publicity.  Can you believe it?

         Q    Unbelievable.  And so —

         MR. MUSK:  Yeah.

         Q    — I want to echo something that the president said and then ask an overarching question.  So, people in — get hit with Hurricane Helene, they have no communication with the outside world.  You come to the rescue.  You donated that, I believe?

         MR. MUSK:  Yes.  Yes.

         Q    You donated to the people of —

         THE PRESIDENT:  He saved a lot of lives.  In North Carolina, he saved a lot of lives. 

         Q    And California, after the wildfires?

         THE PRESIDENT:  California.  But, I mean, in North Carolina, where they were really in trouble, they had no communication, people were dying.

         Q    Nothing.

         THE PRESIDENT:  They were dying of starvation.  He saved a lot of lives in North Carolina.

         Q    Okay.  Now you’re going to rescue astronauts.  And now — again, you do — you do all of this — I would think liberals would love the fact that you have the biggest electric vehicle company in the world. 

         MR. MUSK:  Yeah.  I mean, I used to be adored by the left, you know.

         Q    Not anymore.

         MR. MUSK:  Le- — less so these days.

         Q    He killed that, huh?

         MR. MUSK:  I mean, less —

         THE PRESIDENT:  I really (inaudible) —

         MR. MUSK:  Well, I mean, this — this whole sort of, like, you know — it was — they call it, like, “Trump derangement syndrome.”  And I didn’t — you know, you don’t realize how real this is until, like, it’s — you can’t reason with people. 

         So, like, I was at a friend’s birthday party in L.A., just a birthday dinner, and it was, like, a nice, quiet dinner, and everything was — everyone was behaving normally.  And then I happened to mention — this was before the election, like a month or two before — I happened to mention the president’s name, and it was like they got shot with a dart in the jugular that contained, like, the methamphetamine and rabies.  Okay?  (Laughter.)

         And they’re like, “Whyy?”  And I’m, like, “What is wrong — like, guys, like” — you just can’t have, like, a normal conversation.  And it’s like — it’s like they become completely irrational. 

         Q    He — he has no idea, if you’re friends with him —

         MR. MUSK:  Yeah.

         Q    — you pay a price.  You know, it’s like, I walk into a restaurant in New York, and it’s like half the room gets daggers and they want to —

         MR. MUSK:  The eye-daggers — eye-daggers level is insane.  (Laughter.)

         I mean, there was, like — I had, like, some — some invitation because — so, I got invited to, like, so- — basically, a big, sort of, damn — damn event like that was — but I’d received the invitation, like, the beginning of last year and then — and I still attended, even after I’d endorsed President Trump, and I didn’t realize how profoundly that would affect, you know, how I was received.  (Laughter.)

         I mean, I walk into the room and I’m getting just the dirty looks from — from everyone.  Like, if looks could kill, I would have been dead several times over.

         Q    But that was not — (laughter) — before Trump

         MR. MUSK:  (Inaudible) —

         Q    Before Trump: “BC” —

         MR. MUSK:  — ashes on the floor.  (Laughs.)

         Q    — or “BT.”  Before Trump, that never happened.  Right?

         MR. MUSK:  No.

         Q    No.  So —

         MR. MUSK:  I — I just — doesn’t seem strange?  Like, what — what is up with this total, like, madness?

         Q    You’re smarter than me.  Can you — I actually think that there’s a level of irrationality.  It’s almost like a trigger and —

         MR. MUSK:  It totally triggers. 

         Q    And it’s like — look, I — I’ve been on TV — this is my 29th year.  I’ve been on radio 35 years.  I will — I’ve gone hard in the paint to — for candidates that lost.

         MR. MUSK:  Yeah.

         Q    And guess what?  I get over it.

         MR. MUSK.  Sure.  Yeah, yeah.

         Q    And I just keep doing my show, and I just — you know, I come back to fight another day.

         So, here’s the big — then this is the million dollar or billion dollar — I’m among billionaires — question.  So, you have all this going on and you stop, in a way — you’re still doing it — and you partner with him.  And this is what you get for it from the Democrats.  You get “nobody voted for Elon.”  Well, nobody voted for any of your Cabinet nominees.  Okay?  “People are dying because of DOGE cuts.”  I’ll give you a chance to respond to all that.  “What DOGE is doing is illegal.”  “Elon Musk is” — more street vernacular for a male body part.  “It’s a constitutional crisis.”

         MR. MUSK:  How c- — why — why are they reacting like this?

         Q    Well, first of all, do you give a flying rip?  Number one.  And —

         MR. MUSK:  Well, I guess we must be — if we’re the target, we’re doing something right.  You know, if — like, they wouldn’t be complaining so much if they — we weren’t doing something useful, I think. 

         What — all we’re really trying to do here is restore the will of the people through the president.  And — and what we’re finding is there’s an unelected bureaucracy.  Speaking of unelected, there’s a — there’s a vast federal bureaucracy that is implacably opposed to the — the president and the Cabinet. 

         And you look at, say, D.C. voting.  It’s 92 percent Kamala.  Okay, so we’re in 92 percent Kamala.  That’s a lot. 

         Q    Yeah.  They don’t like me here either. 

         MR. MUSK:  I think about that number a lot.  I’m like, 92 percent.  That’s, basically, almost everyone.  And so — but if — but how can you — if — if the will of the president is not implemented, and the president is representative of the people, that means the will of the people is not being implemented, and that means we don’t live in a democracy, we live in a bureaucracy. 

         And so, I think what we’re seeing here is the — sort of, the thrashing of the bureaucracy as we try to restore democracy and the will of the people.

         Q    You —

         MR. MUSK:  Is this making sense?  I mean — sorry.

         Q    Y- — no, of course it does.  I mean, to me, if you look at our framers and our founders — and you’ve really become a student of history, Mr. President, and we’ve ta- — we’ve had conversations both on air and off air — and if we talk about constitutional order or transformational change, nobody can argue that what’s happening here is going at the speed of light. 

         But however, what were the principles of our framers and our founders?  They wanted limited government, greater freedom for the people — and we’ll get to the specific cutting of waste, fraud, and abuse.  That — that is your goal, is it not?

         THE PRESIDENT:  Yeah.  And my goal was to get great people.  And when you look at what this man has done, I mean, it was something — I knew him a little bit through the White House. Originally, I’d see him around a little bit.  I didn’t know him before that, and I respected what he did.  And he fought hard.  You know, he was a — he was maybe questioned for a while.  He was having some difficulties.  It was not easy doing what he did. 

         I mean, how many people have started a car company and made it really successful and made a better car where it’s, you know, beating these big companies that that’s all they do is cars?  I mean, it’s really amazing the things that he’s done.

         But I didn’t know it as much then as now.  I mean, the fruits have sort of taken hold.

         But I wanted great people, and he’s a great person.  He’s an amazing person.  He’s also a caring person.  You know, he uses the word “care.” 

         So, they sign a contract in a government agency, and it has three months.  And the guy leaves that signed the contract, and nobody else is there, and they pay the contract for 10 years.

         So, the guy is getting checks for years and years and years, and he’s telling his family, obviously — maybe it was crooked, maybe he paid to get the contract, or maybe he paid that they didn’t terminate him.  But, you know, we have contracts that go forever, and they’ve been going for years, and they’re supposed to end in three months or five months or two years or something, and they go forever.  So, the guy is either crooked — you know, where he knew this was going to happen — or he’s crooked because he’s getting payments that he knows he shouldn’t be getting.

         MR. MUSK:  Yeah.

         THE PRESIDENT:  But they’re finding things like that.  They’re finding things far worse than that.  And they’re finding billions — and it will be hundreds of billions of dollars’ worth of fraud.  I say waste and abuse, but fraud, waste, and abuse.  And he’s doing an amazing job.

         And he attracts a young, very smart type of person.  I call them high-IQ individuals, and they are.  They’re very high Q and — high IQ.  And when they go in to see the people and talk to these people — you know, the people think they’re going to pull it over.  They don’t.  These guys are smart, and they love the country.  You know, there’s a certain something. 

         But he uses the word “care.”  So, people have to care.  Like, when I bought Air Force One —

         MR. MUSK:  Exactly.

         THE PRESIDENT:  — I negotiated the price.  It was $5.7 billion, and I got it — I got them down $1.7 billion.  Now they’re not building the plane fast enough.  I mean, they’re actually in default — Boeing.  They’re supposed to —

         Q    When is it —

         THE PRESIDENT:  They’ve been building this thing forever.  I don’t know —

         Q    This is the new Air Force One?

         THE PRESIDENT:  — what’s going on.

         MR. MUSK:  Yeah.

         THE PRESIDENT:  We don’t build the way we used to build.  You know, we used to build like a ship a day, and now to build a ship is, like, a big deal, and we’re going to get this country back on track.  We could do it, but so many things — it takes so long to get things built and get things done. 

         And a lot of it could be something we’ve been discussing.  The regulators go in and they make it impossible to build.  They make it very difficult to build anything, whether it’s a ship, a plane, or a building or anything.  And some of them do it because they want to show how important they are.  Some of them do it maybe because they think they’re right.  They use the environment to stop progress and to stop things.  It’s always the environment.  “It’s an environmental problem.”  It’s not an environmental problem at all.  But they do a lot of things. 

         And, by the way, speaking of that, Lee Zeldin is going to be fantastic in the position.  So important.  He could take 10 years to approve or disapprove something, or he could do it in a month.  You know, just as good.

         Q    Sure. 

         THE PRESIDENT:  And I think you’re going to see some fantastic — a fantastic job done by him.  He’s a tremendous guy. 

         Q    Newt — you echoed something when I had just met you, and it was very similar to what Newt has been saying, that we’re — he brought this country to the dance.  This is the opportunity to be transformational, and to have, I would argue, a — the most consequential presidency if we — if we’d really dig down and do something that had never been done before, and that is get rid of this bureaucracy.  And I’m going —

         MR. MUSK:  Yes.

         Q    — to get to specifics.  You say the same thing.  It’s not done yet. 

         MR. MUSK:  Absolutely.

         Q    And what did you mean by that?

         MR. MUSK:  Well, I mean the — w- — winning the election is really the opportunity to fix the system.  It is not fixing the system itself.  So, it’s an opportunity to fix the system and to restore the power of democracy. 

         And, you know, people — like, it’s funny how — how often it — you — when these attacks occur, the thing that they’re accusing the administration of is what they are guilty of.  They’re saying that things are — are being done are unconstitutional, but what they are doing is unconstitutional.  They are guilty of the crime of which they accuse us.

         THE PRESIDENT:  That’s always the first thing they do.

         MR. MUSK:  Yeah.

         THE PRESIDENT:  “He’s in violation of the Constitution.”  They don’t even know what they’re talking — well, they know.

         MR. MUSK:  It’s absurd. 

         THE PRESIDENT:  It’s just a con job.  It’s a big con job.  And they’re so bad for the country, so dangerous and so bad.

         And the media is so bad.  When I watch MSNBC, which I don’t watch much, but you have to watch the enemy on occasion, the level of arrogance and — and cheating and — they’re just horrible people.  These are horrible people.

         Q    They lie. 

         THE PRESIDENT:  These are horrible people. 

         Q    They tell conspiracy theories.

         THE PRESIDENT:  They lie, and they start up with the Constitution.  They couldn’t care less about the Constitution.

         CNN, likewise.  I mean, I watched them asking questions with, you know, the hatred with the — why — I said, “What are you asking the question with such anger?  You’re asking me a normal question.”  But you see the bias.  The bias is so incredible.  Those two are bad.

         PBS is bad.  AP is bad.  CBS is terrible. 

         I mean, CBS now — they changed an answer in Kamala.  They asked her some questions.  She answered them like, you know, a low-IQ person.  The opposite of him — the absolute opposite.  But she gave a horrible answer.  They took the entire answer out, and they put another answer that she gave 20 minutes later into the — in- — as the answer.  

         Q    It was part of her word salad. 

         THE PRESIDENT:  I’ve never even heard of that be- — I thought I heard of it all.

         MR. MUSK:  Right. 

         Q    That wh- — “60 Minutes” once — one — wanted to do an interview with me, and I said, “Live to tape.” 

         MR. MUSK:  Yeah, exactly. 

         Q    They said, “No.”  And I said, “No” —

         MR. MUSK:  Right.

         Q    — “No deal.” 

         MR. MUSK:  Exactly.  They can- —

         Q    Like, this interview will —

         THE PRESIDENT:  I’ve never even heard — you know, I’ve seen where they take a sentence off or something and they’ll do — but they —

         Q    Sometimes you cut for time o- — 

         THE PRESIDENT:  No, no.  They took the entire — this long, terrible statement that she made and put another. 

         Nobody’s ever seen what’s happening.  And, you know, the people that do all this complaining, they’re very dishonest people. 

         MR. MUSK:  Yeah. 

         Q    Yeah.  I — I’m going to, just for the sake of saving time —

         THE PRESIDENT:  Yeah.

         Q    — because I could spend — and I’ve done this on radio and TV, I — I can spend an hour finding the outrageous amounts of money being spent abroad, like USAID.

         MR. MUSK:  Sure.

         Q    And I do want to mention a couple, but I’m going to —

         MR. MUSK:  Yeah.

         Q    — scroll it and —

         MR. MUSK:  Well — well, I guess, at a high level, I think it’s what the president mentioned earlier, which is that in order to save taxpayer money, it comes down to two things: competence and caring.  And —

         THE PRESIDENT:  That’s right. 

         MR. MUSK:  — and when — when president was shown the outrageous bill for the new Air Force One and — and then negotiated it down, if he had — if the president had not applied competence and caring, the price would have been 50 percent higher — literally, 50 percent higher.  The president cared.  The president was competent.  The price was not 50 percent higher as the result. 

         And so, when you add more competence and caring, you get a better deal for the American people. 

         THE PRESIDENT:  But we could take — we were talking about this yesterday.  I could take — give me thousands of bills — any — I could pick any one of them, and I could —

         MR. MUSK:  Yes, exactly.

         THE PRESIDENT:  — take all thousand.  And let’s say it’s a bill for $5,000 — just $5,000, and it’s done by some bureaucrat.  And if he would say, “I’ll give you three.  I don’t want to pay you five.  It’s too high.  I’ll give you three.”  But they don’t do that.  If a guy sends in a bill for $5,000, they pay $5,000.  They expect to be cut.  Everybody expects to be cut.  When you send in a bill, you expect to be cut.  They send in the bill higher, for the most part.  This is true with lawyers, legal fees.  When they send in legal fees, you — I can cut — I wish I had the time, I would save so — but I could cut these bills in half — much better than half. 

         But you offer people a much lower number because you know they — they actually put fat — I’m not even saying it’s — it’s like a way of business.  They put more on because they expect to be negotiated.  When you send in a bill to the government, there’s nobody to negotiate. 

         MR. MUSK:  Yes.

         THE PRESIDENT:  You send it a bill for $10,000, and they send you a check back for $10,000.  If you would call them and said, “We’ll give you five.”  “No, no, no.  I need more than five.”  “We’ll give you a five.”  “I’m not going to pay any more than five.”  “Make it six.”  “No, I’m not going to make it six.”  And you’ll settle for $5,500.  You’ve just cut the bill almost in half, and it took, like, two minutes.  When did that stop?  But —

         Q    (Inaudible) the art of the deal?

         THE PRESIDENT:  — that’s caring.  No, it’s not even the art of the deal.  It’s caring.  He uses the word —

         MR. MUSK:  It’s — it’s competence and caring.

         THE PRESIDENT:  — it’s caring. 

         Q    Yeah.

         THE PRESIDENT:  It’s — it’s a certain competence, but I think it’s more caring. 

         MR. MUSK:  I — if you —

         THE PRESIDENT:  (Inaudible.)

         MR. MUSK:  Actually, if you add either ingredient — either competence or caring — you’ll — you’ll get a better outcome.  But it stands to reason —

         Q    Right.  People don’t want to do this (inaudible.)

         MR. MUSK: — that’s the reason that if you don’t have competency and you don’t have caring, you’re going to get a terrible deal.  And the problem is that the American taxpayer has been — been getting a terrible deal, because — look at the last administration.  Can you — can anyone — can any reasonable person say that last administration was either competent or caring?

         Q    But they lied to us and said that Joe didn’t have a cognitive decline.

         MR. MUSK:  They fully lied. 

         Q    They said the borders were closed.  They said that the borders were secure.  They said that —

         MR. MUSK:  Right.

         Q    You know, they said Obamacare would save —

         MR. MUSK:  They flat out lied. 

         Q    They flat out lied — 

         MR. MUSK:  It was insane.

         Q    — on many occasions. 

         MR. MUSK:  Yes.

         Q    I tell my audience all the time: Don’t trust government. 

         MR. MUSK:  Yes.

         Q    So, the — I want — as I scroll this information, and it’s — it’s — I’ll scroll a lot more than I’ll mention to both of you, and this is the cost savings.  I want you — I want people at home to understand this part: The average American makes $66,000 a year. 

         MR. MUSK:  Yeah.

         Q    Okay?  We have $37 trillion in national debt. 

         MR. MUSK:  Yes. 

         Q    Now, all the money I’m about to mention and what we’re going to scroll on our screen — and all of this is going to foreign countries.  It is not being spent here in America —

         MR. MUSK:  Yes.

         Q    — for better schools, law and order. 

         MR. MUSK:  I — I think the average taxpaying American should be mad as hell because their tax money is being poorly spent.

         Q    I’m mad.  It’s stealing from —

         MR. MUSK:  It’s a — it’s an outrage —

         Q    — our kids and grandkids.

         MR. MUSK:  Yes, and the — and people —

         THE PRESIDENT:  And a lot of fraud, Sean.  A lot of fraud.

         Q    Yes.

         THE PRESIDENT:  And a lot of kickbacks. 

         They’re sending money out.  They’re not that stupid.  These people aren’t that stupid.  They’re sending for transgender — something having to do with the opera, and they’re sending out $7 million —

         MR. MUSK:  (Laughs.)  Literally.

         THE PRESIDENT:  — $7 million.  (Inaudible) —

         Q    You just stole my next line.  I can’t believe that. 

         THE PRESIDENT:  No, it’s incredible. 

         Q    I was going to mention that.

         THE PRESIDENT:  No, but it’s incredible: $7 million.

         Now, you know they — they’re not so stupid.  They’re sending all this money.  They expect to get a lot of it back.  And that’s what happens.

         Q    Okay.  So, let’s go through it.

         MR. MUSK:  Yes, they’re — a bunch of —

         Q    So, for the average person at home —

         MR. MUSK:  — this stuff is round-tripping.  To the president’s point, they’ll — they’ll make it sound like it’s going to help some people in a foreign country, but then they — then they get kickbacks. 

         Q    All right.  Let me go to the ne- — to the fir- —

         MR. MUSK:  Yeah.

         Q    — to the second question first.  I want to know, because people like Joni Ernst, and — and House —

         MR. MUSK:  Yeah, Joni — Joni Ernst has been —

         Q    They tried to get —

         MR. MUSK:  — has tried for a long time, and she’s actually got a lot of good data.  Senator Ernst has been really helpful, actually.

         Q    Okay, but they — they actually hide what the real purpose of the spending is. 

         MR. MUSK:  That’s true.

         Q    In other words, they — and — and h- — this is a question: How did you decipher?  It will say, “Humanitarian blah, blah, blah in Serbia or Afghanistan.”  We’ve been giving money to China for crying out loud, which I think is nuts.

         MR. MUSK:  Well, we’re giving money to the Taliban.

         Q    Money to the Taliban?

         MR. MUSK:  Like a lot.

         Q    All right.  So —

         MR. MUSK:  (Laughs.)  I’m like, for what?

         Q    But they —

         MR. MUSK:  I — I want to see pictures of what they did.

         Q    But they try to obscure it, and — and — but then you got to the bottom line, which is what I’m now scrolling on the screen —

         MR. MUSK:  Yes.

         Q    — and that is: $20 million on a Sesame Street show in Iraq; $56 million to boost tourism in Tunisia and Egypt; $40 million to build schools in Jordan; $11 million to tell the Vietnamese to stop burning trash; $45 million for DEI scholarships in Burma; $520 million for consultant-driven ESG investments in Africa; DEI programs in Serbia; the president’s favorite — I’m sure you — you love that taxpayer money was spent on a DEI musical in Ireland or a chan- — transgender opera in Colombia or a —

         MR. MUSK:  If I could, like, it sounds like —

         Q    — transgender comic book in Peru. 

         MR. MUSK:  It sounds like — it sounds like how can these things be real?  But this is actually what was done. 

         Q    Okay.  The — I —

         MR. MUSK:  It — it sounds like a comedy sketch or something.  It’s like —

         Q    I have 20 pages of this.

         MR. MUSK:  Right.  It’s not — the list is a mile long.

         THE PRESIDENT:  The one thing you didn’t mention, the media.  The media is getting millions of dollars. 

        MR. MUSK:  Yes.

         THE PRESIDENT:  Now, they say Politico, which is a radical left —

         Q    Subscriptions. 

         THE PRESIDENT:  — you know, garbage magazine or — or program.  I guess they have magazine and they have some — some media of all types.  $8 million. 

         I hear the New York Times got a lot.  I hear they get subscriptions — where they have subscriptions but maybe the paper is not sent.  I have no idea if that’s true or not, but it’s — they call it subscriptions.  Lots of subscri- — to different media, not just the Times — maybe the Times, and maybe not the Times.

         Q    A million dollars in subscriptions is a lot.

         THE PRESIDENT:  Well — but — but millions of dollars going to media that’s radical-left, crooked, dishonest media.

         MR. MUSK:  Well — well, Reuters — this is actually really wild: Reuters got like — something like $10 million for something that was literally titled “mass disinformation campaign.” 

         Q    Well —

         MR. MUSK:  That was on the purchase order.  Well, I — I

    thought that was a little bold.  (Laughs.) 

         Q    I will tell you what was bold is when you released —

         MR. MUSK:  I’m like —

         Q    — the Twitter files.

         MR. MUSK:  — shouldn’t you at least try to call it something else?  (Laughs.)

         Q    The Twitter files — how they targeted him; how Twitter, at the time, worked closely with the FBI, the CIA; and, even before the release of Hunter’s very real laptop, they were feeding them disinformation.  That —

         MR. MUSK:  Absolutely.

         Q    — you found all that out. 

         MR. MUSK:  Well, I think —

         Q    That’s called transparency, right?

         THE PRESIDENT:  The FBI has to be rehabbed.  The FBI —

         MR. MUSK:   Yeah.

         THE PRESIDENT:  What’s happened with the FBI and the DOJ is just — their — their stock has gone way down.  I mean, their reputation is shot.

         Q    And intelligence.

         THE PRESIDENT:  And I think Pam is going to do great.  I think Kash is going to do great.  I think they have to do great or we have a problem. 

         But when you look at what they did, the raid of Mar-a-Lago — the raid of Mar-a-Lago — you look at what they did, their reputation is shot.

         Q    It is. 

         What — you were going to say, Elon?

         MR. MUSK:  Well, no, I was going to say that I think probably a — like, a lot of people still —

         Q    How — how did you find (inaudible)?

         MR. MUSK:  — still believe, like, the Russia hoax, even though you’ve done a lot to combat that.  The — you know, the — the Steele dossier was an incre- — a massive scam that was concocted by Hillary Clinton and her — her campaign.

         Q    She bought and paid it — for it —

         MR. MUSK:  Right.

         Q    — Russian disinformation. 

         MR. MUSK:  There was — it was — the — people still think the — the Russia hoax is real.  Like a lot of people s- — because they never — they never heard the counterpoint.  I mean — I mean, a bunch of people should be in prison for that.  That was a — that was outrageous election interference, creating a fake Russia hoax. 

         Q    How much — if you had to put a number on it, how much do you think you’ve identified waste, fraud, abuse, corruption at this point?  And again, we’ve been — we’re going to be scrolling this throughout the program. 

         MR. MUSK:  Well, the — the overall goal is to try to get a trillion dollars out of the deficit.  And if we — if we — if the deficit is not brought under control, America will go bankrupt.  This is a very important thing for people to understand.  A country is no different from an individual, in that if an individual overspends, an individual can go bankrupt, and so can a country. 

         And — and the out- — the massive waste, fraud, and abuse that has been going on, which is leading to a $2-trillion-a-year deficit, that — that’s what the president was handed on Jan. 20th, a $2 trillion deficit.  It’s insane. 

         Q    For this fiscal year?

         THE PRESIDENT:  Two trill- — yeah.  We inherited it.

         MR. MUSK:  Two —

         THE PRESIDENT:  Yeah.  And inflation is back.  I’m only here for two and a half weeks. 

         Q    That was January —

         THE PRESIDENT:  Inflating is back —

         Q    — you were there for a week. 

         THE PRESIDENT:  No, think of it, inflation is back.  And they said, “Oh, Trump infla-” — I had nothing to do with it.  These people have — have run the country.  They spent money like nobody has ever spent.  They were — they were given $9 trillion to throw out the window — $9 trillion, and they spent it on the Green New Scam, I call it.  It’s the greatest scam in the history of the country.  One of them.  We have a lot of them, I guess.  But one of them.

         Q    Well —

         THE PRESIDENT:  Dollar-wise, probably —

         Q    — and DEI —

         THE PRESIDENT:  — it is.

         Q    — and wokeism —

         THE PRESIDENT:  Yeah, yeah.

         Q    — and transgenderism —

         THE PRESIDENT:  Well, that’s all part of it.  Yeah.

         Q    — and LGBTQ+.

         MR. MUSK:  Yes.

         Q    And, by the way, not in America — other countries, not here. 

         THE PRESIDENT:  You know, the amazing thing is when you see, like, the teaching of DEI: $9 million.  How do you spend $9 million to teach no matter what it is?

         MR. MUSK:  Right.

         THE PRESIDENT:  You could teach physics. 

         MR. MUSK:  Exactly.  Totally.

         THE PRESIDENT:  You could go to MIT for a lot less.

         MR. MUSK:  It’s (inaudible) expensive.  (Laughs.)  Expensive.

         THE PRESIDENT:  Yeah, the teaching —

         MR. MUSK:  Expensive BS.

         THE PRESIDENT:  — of DEI.

         Q    Well, I think it would be better spent on —

         THE PRESIDENT:  No, it’s a kickback.  It’s got to be a kickback.  Nobody is that — nobody could do that.  Nobody is —

         Q    Well, it —

         THE PRESIDENT:  Nobody is giving — to assess the dialog of an audience coming out of a theater: $4 million.

         Q    How much do you believe, Elon, you’ve identified in — in waste, fraud, abuse, corruption now?  And how much —

         MR. MUSK:  Well —

         Q    — do you anticipate you will?

    MR. MUSK:  Sure.  Well, the — I — I think —

    THE PRESIDENT:  One percent.

    MR. MUSK:  (Laughs.)

    THE PRESIDENT:  No, because it’s so massive.  It’s — this is —

    MR. MUSK:  Yeah, exactly.

    THE PRESIDENT:  — huge money.  Huge money.  Look —

    Q    So, what we’ve found now is one percent?

    MR. MUSK:  Well, we’ve j- — we’ve just gotten started here.

    THE PRESIDENT:  As good as they are, they’re not going to find some contract that was crooked — you know, crooked as hell.  And, I mean, there’s going to be so much that isn’t found.  But what is found — I think he’s going to find a trillion dollars.

    MR. MUSK:  Yeah, I think so. 

    THE PRESIDENT:  But I think it’s a very small percentage compared to what it is.  I mean, he could tell you about treasuries; he could tell you about a woman that worked for Biden that became a very wealthy woman while she was working for him.  Right?

    MR. MUSK:  Yeah.

    Q    Yeah, I know who you’re talking about.

    MR. MUSK:  I mean, there are some strange situations where people — where, you know, someone’s working for the government earning $200,000 a year, and then, suddenly, they’re worth tens of millions of dollars within a few years.  Where’d the money come?

    Q    How’d they earn it?

    MR. MUSK:  Yeah.

    Q    They have a private company on the side? 

    MR. MUSK:  We’re just curious.  Like, can you —

    THE PRESIDENT:  While they were working.

    MR. MUSK:  Can you show us — because, like, in order to be worth tens of millions of dollars, you’d have to start a company, or you’ve got to get some kind — the compensation has got to come from somewhere.  So, how does a civil servant with — earning $200,000 a year suddenly, within a span of a few years, be worth tens of millions dollars?

    Q    W- —

    MR. MUSK:  So, I just want to connect the dots here. 

    Q    All right, s- —

    MR. MUSK:  Maybe there’s a legitimate explanation, but I don’t think so.  (Laughter.)

    Q    So, you know, and this gets to kind of the heart of where I am.  I — I looked at your work, and I look at this amount of money, and I get angry.  And I don’t get v- — I’m not an angry person. 

    MR. MUSK:  Sure.

    Q    I don’t get angry.  I get a- — I get annoyed sometimes, but I don’t get angry. 

    And I did live paycheck to bay- — paycheck a part of my life.  And I think of, you know, the working men and women in this country that the — 56 percent of which cannot afford a $1,000 emergency after four years of Harris and Biden.

    MR. MUSK:  Sure.

    Q    Okay?  That is serious, you know, financial trouble.  Or they’re putting bare necessities on credit cards. 

    And I’m looking at this and I’m thinking, well, how much — when we — when all is said and done, we could have written a check or cut the taxes or fixed our schools —

    MR. MUSK:  Yes.  Yes.

    Q    — or deported these illegals that we keep finding, known terrorists, cartel members, gang members. 

    MR. MUSK:  Yeah.

    Q    And — and we’re not doing it.

    THE PRESIDENT:  Sean, the saddest thing is they don’t talk about the individual lines.  I could go on your show right now,  I could get a list that I have on the beautiful Resolute Desk in the Oval Office, and it’s got 40 points, and all they are is the heading of what this money is. 

    You don’t have to go deep into it, and you see it’s, you know, all different things and it’s so ridiculous. 

    I mean, normally, when you look for fraud, you’re looking for one thing out of a hundred.  Here, out of a hundred, 95 are going to be bad.  I mean, they’re — and they’re so obvious just by the heading.

    But they never mention that.  They only mention, “This is a violation of our Constitution.  This is a” — the word they give, you know, it’s like a sound bite — “constitutional crisis.”  It’s a new thing, “constitution-” —  But they never mention about where the money is going. 

    MR. MUSK:  Yes.  Exactly.

    THE PRESIDENT:  And when people hear that — I had a very smart man, John Kennedy — he’s actually a very smart man.  He said, “Sir, you should just go on television and just read the name of the topic that you’re giving all the money — just the topic that you’re giving this money to, and don’t say anything more,” and he’s right.

    MR. MUSK:  Yeah.

    THE PRESIDENT:  And I’ll do it at some point, you know, when — 

    But they never talk about where the money is going.  They just talk about, “It’s a constitutional crisis.” 

    It’s so sad.  And honestly, I think they’re bad people.  I used to give them the benefit of the doubt, but you almost think they hate the country.  I think they hate the country.  They’re sick people. 

    Q    Remember, what they can’t — what they couldn’t accomplish at the ballot box, what they can’t accomplish legislatively, now they’re using the courts.

    MR. MUSK:  Yes.

    Q    And they c- — they’re trying to bury you in lawsuits.

    THE PRESIDENT:  That’s right.  You know the good news, though?  They’ve lost their confidence.  They’re not the same people. 

    Q    I think you’re right.

    THE PRESIDENT:  They’re — they’re not the same people. 

    This election was brutal for them.  We won every swing state.  We won by millions and millions of votes.  We won everything.  We — all 50 states went up — all 50.  It’s never happened.

    Q    Popular vote. 

    THE PRESIDENT:  Every one.  All 50 states went up. 

    They’ve lost their confidence.  I see it.  And they’re — they’re just swirling and twirling.  They don’t know what the hell is happening.  They’re much different.  They’re just as mean, but they’re not getting to the point.

    Q    Why do you invite them into the Oval Office nearly every day?

    MR. MUSK:  (Laughs.)

    THE PRESIDENT:  Well, the media — you’re talking about the media.

    Q    Yeah, your friends in the media.

    THE PRESIDENT:  The media — no, they’re — you know, the anger that — they ask questions so angry — a question — a normal question.  I give them an answer.  They — but they — I say, “Why are you so angry when you ask a question?”  Just a standard question.  And, I don’t know, there’s something —

    Q    They haven’t had a- — they haven’t been allowed in that office for the last four years, and here you’re giving them access. 

    Let me go to an area that I think is key, and — and you talked about this in recent interviews, and that is: We don’t need a Department of Education.  Okay.  And what some people are trying to do is stoke fears that, “Oh, my gosh, my kid is not going to get the money for education.”

    THE PRESIDENT:  (Laughs.)  Yeah.

    Q    Or “grandma’s Social Security and Medicare.”  This was a big promise of yours on the campaign trail.

    THE PRESIDENT:  Yeah.  Yeah.

    Q    So, I really want to give you both an opportunity to assure the American people you will keep — that money will be allocated for students, but with higher standards.  For example, I would assume associated with monies given or vouchers.

    THE PRESIDENT:  (Inaudible) so much and — and then Elon goes.  But, look, Social Security won’t be touched — 

    Q    Won’t be touched.

    THE PRESIDENT:  — other than if there’s fraud or something — we’re going to find it; it’s going to be strengthened — but won’t be touched.  Medicare, Medicaid, none of that stuff is going to be touched.  It’s just — 

    Q    Nothing.  I want you to —

    THE PRESIDENT:  (Inaudible) don’t have to.

    Now, if there are illegal migrants in the system, we’re going to get them out of the system, and all of that fraud.  But it’s not going to be touched.

    School — I want to bring school back to the states, so that Iowa, Indiana — all these places — Idaho, New Hampshire — there’s so many places, the states.  I figure 35 really run well. 

    And right now, it’s Norway, Sweden, Denmark, Finland, China — China, can you imagine? — has top — top schools.  We’re last. 

    So, they have a list of 40 countries.  We’re number 40.  Usually we’re 38, 39, but last time, we were number 40.  And what I say is you’ve got to give it back. 

    So, it doesn’t work. 

    I’ll tell you what we’re number one in: cost per pupil.  We spend more money than any other country by far — it’s not even close — per pupil.  Okay?  So, we know it doesn’t work. 

    So, we spend the most and we have the worst — right? — the worst result.  When we give that — when we give that back to Indiana, when we give that b- — back to Iowa and back to a lot of the states that run well — they run well, a lot of them — 35, 37, 38 — now, you’re going to have 10 laggards, but you’re going to have 5 real laggards, but that’s going to be okay. 

    Take New York — you give it to Westchester County, you give it to Suffolk County, you give it to Upstate New York, and you give it to Manhattan — but you give it to four or five subsections.  Same thing in California.  Los Angeles is going to be a problem, but you’re going to give it to places that run well.  We can change education

    Now, school choice is important, but that will get care — taken care of automatically. 

    We want to bring education back to the states.  You will spend half the number.  And I’m not even doing this —

    Q    So, you’re leaning more towards grants not vouchers, like to parents?

    THE PRESIDENT:  I’m not even — I’m not even doing this to save, but you will save.  It will cost you much less money.  You get a much better education. 

    If you go to some of these states, you’ll be the equivalent of Norway, Sweden, Denmark — places that really have a good school system.  You’ll have — those places will be the equivalent, and your overall numbers will get so much better. 

    Q    Do you want standards associated with the money?

    THE PRESIDENT:  The only thing I want to do from — from Washington, D.C., is make sure they’re teaching English, reading, writing —

    Q    Math and science.

    THE PRESIDENT:  — and arithmetic.  Okay?

    Q    Science?  Science might help.

    THE PRESIDENT:  Okay.  A little science.  You know —

    Q    Computers.

    THE PRESIDENT:  — you’re not going to have much of a problem with that, but that’s it. 

    Do you know, we have half the buildings — I mean, you look at Department of Education —

    MR. MUSK:  It’s empty.

    THE PRESIDENT:  Look at the real estate and the —

    MR. MUSK:  Yeah.

    THE PRESIDENT:  — the level.  For what?  To — to — I mean, for — what do they do?

    We have really bad educa- — the teachers — I love teachers.  I respect teachers.  And, by the way, there’s no reason why teachers can’t form a union.  They can do whatever they want to do, if it’s back in the states.  So, we’re not looking to hurt the teacher — I’m — I’m going to help the teachers.  I think the teachers should be incentivized, because a good teacher is like a good scientist, is like a great doctor.

    MR. MUSK:  Sure.

    THE PRESIDENT:  It’s a valuable commodity. 

    MR. MUSK:  Yeah.

    THE PRESIDENT:  I think they should be incentivized. 

    MR. MUSK:  Yes.

    THE PRESIDENT:  So, I’m totally for the teachers.

    MR. MUSK:  Absolutely.

    Q    I interview a guy a lot on radio.  He’s from Wichita, Kansas.  And he started —

    THE PRESIDENT:  Right.

    Q    — as a medical doctor.  Started Atlas.MD, and he’s now — he’s rolled it out nationwide.  Concierge care, $50 a month, 24-hour access to a doctor. 

    THE PRESIDENT:  Right.

    Q    You know, they use a lot of telemedicine now as part of it — very innovative.  He negotiates directly with pharmaceutical companies.  People — if they have high blood pressure, they walk out with their medicine.  They have high cholesterol, they walk out with their medicine.  And they pay pennies on the dollar.

    You mentioned —

    THE PRESIDENT:  By the way, forms of that could be done.

    Q    Forms of that?

    THE PRESIDENT:  Forms of that could be done.

    Q    Innovation. 

    THE PRESIDENT:  We got hurt when we didn’t get the vote on Obamacare.  I made Obamacare — I had a choice: I could let it rot and win a point, or I could do the best you could do with it.  And that’s what I did.  We did a great job with it, and we made it sort of work, but it’s lousy.  We could do so much better. 

    And when you say — you go to certain areas, they — they have doctors round the clock.  They have great medical care for a fraction of what we’re paying right now. 

    There are things we could do. 

    But, look, just overall, this man has been so valuable.  I hate to see the way they go after him.  They go after him.  It’s so unfair.  He doesn’t need this.  He wants to do this. 

    First of all, this is bigger than anything he’s ever done.  He’s done great companies and all, but this is much — you know, this is trillion — everything’s trillions, right?

    MR. MUSK:  Yeah.  The numbers are crazy.

    Q    To go back to my original point —

    THE PRESIDENT:  He can save —

    MR. MUSK:  Yeah.

    Q    But let me — give him his $10 million back.

    MR. MUSK:  Well — well — I — no.  So, people ask me, like, “What’s — what’s the — what’s the — what’s, like, the — what’s your biggest surprise in — in D.C.?”  And I’m like, “The sheer scale.”

    Q    It’s massive.  So, you love the challenge?

    MR. MUSK:  Well, I mean, to —

    THE PRESIDENT:  He’ll never do anything bigger.

    MR. MUSK:  To the president’s point —

    THE PRESIDENT:  That’s the only thing you can say, “He’ll

    never do anything” —

         MR. MUSK:  But, I mean, you do something slightly better, and you save billions of dollars for the American taxpayer — just slightly better.  Slightly.  (Laughs.)

         Q    When you say “tech support” —

         MR. MUSK:  You go one percent better, and it’s, like, you know, tens of billions of dollars saved to the American taxpayer. 

    Now, if I may address the point that you — the question you asked earlier, which is, you know, how do we assure people that —

    Q    They want to know.

    MR. MUSK:  Yeah, how do we assure people that we’re going to do the right thing, that their — that their Social Security benefits will be there, that their — the medical care will be good and s- — and — in fact, how do we make it — ensure that there’s better medical care in the future?  How do we improve their benefits?  How do we make sure that their Social Security check goes further than it did in the past and not — it doesn’t get weakened by inflation?

    So, the — if we — if we address the — the massive deficit spending, the sort of — the — the waste in the government, then — then we can actually address inflation. 

    So, provided the economy grows faster than the money supply, which means you stop the government overspending and the waste, and the output of real useful goods and services exceeds the increase in the money supply, you have no inflation.

    Q    Yeah.

    MR. MUSK:  And — and you also drop the — the interest payments that people pay, because if the government keeps —

    Q    Way too high.

    MR. MUSK:  Yes.  The — the reason the interest payments are so high is because the — the national debt keeps increasing.  So, the — the government is competing for — to sell debt with — for — with — with the private citizens.  This drives up the interest rate. 

    So, if you have a — if you have a — if you cut back on the deficit, you actually have an amazing situation for people, because you get r- — you get rid of inflation and you drop the interest rates.  And that means people’s mortgage payments go down, their credit card payments go down, their car payments go down, their student loans go down.  Everything — their — their life becomes more affordable and they’re standard of living improves.

    Q    How quickly?  Because I think people are suffering now.  We’re still living under the Biden-Harris economy. 

    THE PRESIDENT:  But, Sean, you have states right now —

    Q    Yeah.

    THE PRESIDENT:  You have some states that operate that way.  They operate as well as any corporation.  They really operate well.

    MR. MUSK:  Yeah.

    Q    Florida.

    THE PRESIDENT:  They have surpluses.  They ha- — they don’t —

    MR. MUSK:  Texas is — has a surplus, for example.

    Q    Yeah.

    THE PRESIDENT:  When they — when they look at New York and — and California and some of these places that should have an advantage — I mean, there’s a big advantage — or Pritzker does such a bad job in Illinois; it’s horrible how bad he is — and they don’t have that advantage. 

    You know, New York has stock exchange and a lot of things.  And California has the weather and the beautiful water and all the thing- —

    MR. MUSK:  California has — has great weather.  The most expensive weather on Earth.

    THE PRESIDENT:  Yeah.  (Laughter.)  But — but —

    Q    I like Florida.

    MR. MUSK:  Yeah.

    THE PRESIDENT:  But some states operate the way he’s talking about.

    Q    Efficiently.

    THE PRESIDENT:  When you go into some of these states, you’re going to find very little.  You’re going to find almost nothing.  They really operate well — big surpluses, low taxes.  And —

    Q    You know, my taxes went up the first time you were president, because you took away the SALT deduction —

    THE PRESIDENT:  I — well, I did.

    Q    — which, by the way, I thought was the right decision.

    THE PRESIDENT:  It was the right decision — in fact, Reagan tried to do it — because it rewards badly run states.

    But at the same time, it’s a tough — it was — it’s tough for the states.  I mean, it really is tough for the states. 

    The sad part is it rewards really badly run states. 

    Q    Yeah.

    THE PRESIDENT:  And Reagan tried to do it.  He was unable to do it.  I got it done. 

    Q    You got it done, and —

    THE PRESIDENT:  And now we’re going to give some back.

         Q    A little bit.

    THE PRESIDENT:  Because you know what?  We’ve got to help them.

    Q    It’s only a little.

    THE PRESIDENT:  We’ve got to help.

    Q    Because otherwi- — we’re encouraging people to elect high taxes, spen- —

    THE PRESIDENT:  Nobody had any idea it would be that devastating.  I did the right thing.  I got something that Reagan couldn’t do.  I got it done, where everybody is — are the same.  But you know what?  We’ve got to help them out.

    Q    Reagan had the Grace Commission, some of the best business minds in the country.

    THE PRESIDENT:  Right.

    Q    And they came up with recommendations.  Congress adopted none of them, and none of them were implemented. 

    I’ve got to ask this question, because the media is obsessed about it: What — what if there is a conflict?  In other words, because you do business — it was funny, when it came out the other day, that there was going to be, I think, $400 million — billio- — I don’t know if it was millions or billions — a lot of money on Teslas that Joe Biden’s administration w- — did with Tesla, and —

    MR. MUSK:  I’m not familiar with that.

    Q    You’re not even familiar with it?  But —

    MR. MUSK:  I — I don’t think — are you talking about, like, the Inflation Reduction Act stuff or —

    Q    It was some — it was a purchase order of Tesla vehicles. 

    MR. MUSK:  Oh.  Oh, that was — that was incorrect.  There was s- — like, there’s some sort of — the media claim that there was, like, $400 million worth of Cybertrucks —

    Q    That was it.

    MR. MUSK:  — being bought by the DOD.

    Q    And that he gave it to you.

    MR. MUSK:  No — well, first of all, that was —

    THE PRESIDENT:  No, actually, it was —

    MR. MUSK:  Th- — it was fa- —

    THE PRESIDENT:  It was Biden.

    Q    It was Biden.

    THE PRESIDENT:  And you know Biden wouldn’t give him much.

    MR. MUSK:  But — but it wasn’t even — it was fake news, six weeks to Sunday.  Tesla is not getting $400 million for Cybertrucks.  And the — and the — and this alleged —

    Q    That’s what it was, Cybertrucks.

    MR. MUSK:  This — yeah.  This alleged award occurred in December, before the president took office.  So, it’s — it’s fake on multiple levels.  There i- — Tesla isn’t getting $400 million.  And even if it — even if it was, which it isn’t, it was awarded during the Biden administration. 

    Q    Okay, but you’re — you — you —

    MR. MUSK:  It’s total fake news. 

    Q    There — there is —

    MR. MUSK:  It’s fake on, like — it’s like multiple leverals —

    Q    There is some integration —

    MR. MUSK:  — multiple layers of fake.

    Q    So, you’re — you’re tasked now — and I pray to God this is successful.  I really do.  I wish you Godspeed. 

    MR. MUSK:  Yeah.

    Q    You know, “Godspeed, John Glenn.”

    THE PRESIDENT:  It’s — it’s going to be, by the way.  I really believe it’s going to be.

    Q    But — but there —

    MR. MUSK:  Oh, yeah.

    Q    But there are legitimate areas —

    THE PRESIDENT:  Because the country is going to do well beside this. 

    This is cutting.  We’re only talking about cutting. 

    We’re also going to make a lot of money.  We’re g- — we’re taking in so much money.

    Q    But what about his business?  What if — if there is —

    THE PRESIDENT:  Then we won’t let him do it.

    Q    — a contract he would otherwise get?

    THE PRESIDENT:  We’re not going to let him do it.  He — if —

    Q    You’re not going to let him do it?

    THE PRESIDENT:  If he’s got a conflict — I mean, look — he —

    Q    Y- — now y- —

    THE PRESIDENT:  He’s in certain areas — I mean, I see this morning — I didn’t — I didn’t know, but I said, “Do the right thing” — where they’re cutting way back on the electric vehicle subsidies.

    MR. MUSK:  Yes.

    THE PRESIDENT:  They’re cutting back.

    Q    You’re losing —

    THE PRESIDENT:  Not only cutting back —

    Q    It hurts you.

    MR. MUSK:  Correct.

    THE PRESIDENT:  Yeah.

    Now, I will tell you —

    Q    You don’t care? 

    MR. MUSK:  Well —

    THE PRESIDENT:  He’s probably not that happy with it, but that would have been one thing he would have come to me and said, “Listen, you got to do me a favor.  This is crazy.”  (Laughter.)  But this was in the tax bill.  They’re cutting back on the subsidies. 

    I didn’t — I wasn’t involved in it.  I said, “Do what’s right, and you get” — and they’re coming up with the tax, but it’s just preliminary. 

         But I mean, if he were involved, wouldn’t you think he’d probably do that?  Now, maybe he does better if you cut back on the subsidies.  Who knows.  Because he figures — he does think differently.  He thinks he has a better product, and as long as he has a level playing field, he doesn’t care what you do —

         MR. MUSK:  Exactly.

         THE PRESIDENT:  — which he’s very — he’s told me that.

    MR. MUSK:  Yeah.  I mean, I haven’t asked the president for anything ever.

    THE PRESIDENT:  It’s true.

    Q    And if it comes up, how — how will you handle it?  (Inaudible.)

    THE PRESIDENT:  He won’t be involved. 

    MR. MUSK:  Yeah, I’ll — I’ll re- — I’ll recuse myself if it is a conflict.

    THE PRESIDENT:  If there’s a conflict, he won’t be involved. 

    MR. MUSK:  Yeah.

    THE PRESIDENT:  I mean, I wouldn’t want that, and he won’t want it.

    MR. MUSK:  Right.  And — and also, I’m getting a — sort of a daily proctology exam here.  You know, it’s not like I’ll be getting away from something in the dead of night. 

    Q    Welcome to D.C.  If you want a friend, get a dog. 

    MR. MUSK:  Well, I do have a dog, but I also have friends.  (Laughter.)  My dog loves me, poor little creature. 

    THE PRESIDENT:  You know the truth was —

    MR. MUSK:  I need to bring him to D.C.

    THE PRESIDENT:  He’s — I know every businessman.  I know the — the good ones, the bad ones, the smart ones, the lucky ones.  I know them all.  This guy is a ver- — he’s a brilliant guy.  He’s a great guy.  He’s got tremendous imagination and scientific imagin- — far beyond — you know, you keep talking about a technologist and all, but you’re much more than a technologist.  You are that.  But he’s also a good person.  He’s a very good person, and he wants to see the country do well. 

    And I know a lot of great businesspeople, really great business people, but, you know, they’re not really, in some cases, very good people.  And I know people that would try and take advantage of the situation. 

    This guy is somebody that really cares for the country, and I saw that very early on.  I saw it, really, a long time ago when I got to know him.  He’s a very different kind of a character. 

    That’s why — you know who loves him: young people that are very smart and that love the country.  He’s got, like, a tremendous following, because that’s what he’s — he’s a good person.

    And he doesn’t need this.  He didn’t need this, and he’s doing this to help the country.  If I didn’t win this election, this country was — I don’t think it could have made it.  I don’t — I mean, we’re allowing criminals — millions of criminals into our country, where everything is transgender, it’s men playing in women’s sports. 

    I mean, none of this stuff — you could go — I could give you a hundred things.  It’s almost like they’re trying to destroy the fabric of — of the country, of the world, because the world was following us.  Now the world is following us out of this pit. 

    We’ve done a lot.  I’ll tell you what, in three weeks, we’ve done more — I think we’ve done more — in — in terms of meaningful, not just dollars — than maybe any president ever.  And a lot of people are saying that.

    Q    Shock — it’s been shock and awe. 

    THE PRESIDENT:  I mean, if we can keep it going at this level, this country is going to be at a level that it’s never seen before. 

    Q    You know one of the things you did that I really thought was pretty clever and smart and fair, and that was reciprocal tariffs. 

    THE PRESIDENT:  Yeah, reciprocal. 

    Q    Ta- — I didn’t know India charged so much.  I didn’t know the European Union to charge them. 

    MR. MUSK:  Yeah, totally.

    Q    I didn’t know Canada was charging us.

    THE PRESIDENT:  Everybody.  Everybody.  Everybody but us.

    Q    Brazil, why?

    THE PRESIDENT:  And I was doing it — you know, I charged China tariffs.  I took in hundreds of billions of dollars, and I was doing that.  But when we got — we had the greatest economy in history.  But then we got hit with COVID, and we had to solve that problem, because I was doing it — and now I said, I want to come back and do the recipri- — because every country in the world almost — we have a deficit with almost every country — not every one, but just about, pretty close.

    And — but every country in the world takes advantage of us, and they do it with tariffs.  They makes — make it — it’s impossible for him to sell a car, practically, in, as an example, India.  I don’t know if that’s true or not, but I think —

    MR. MUSK:  The tariffs are like 100 percent import duty. 

    THE PRESIDENT:  The tariffs are so high —

    MR. MUSK:  Yeah.

    THE PRESIDENT:  — they don’t want to — now, if he built the factory in India, that’s okay, but that’s unfair to us.  It’s very unfair. 

    And I said, “You know what we do?”  I told Prime Minister Modi yesterday — he was here.  I said, “Here’s what you do.  We’re going to do — be very fair with you.”  They charge the highest tariffs in the world, just about.

    Q    36 percent?

    THE PRESIDENT:  Oh, much — much higher.

    MR. MUSK:  It’s 100 percent on — auto imports are 100 percent.

    THE PRESIDENT:  Yeah, that’s peanuts.  So, much higher.  And — and others too.  I said, “Here’s what we’re going to do: reciprocal.  Whatever you charge, I’m charging.”  He goes, “No, no, I don’t like that.”  “No, no, whatever you charge, I’m going to charge.”  I’m doing that with every country. 

    MR. MUSK:  It seems fair.

    Q    Don’t you —

    THE PRESIDENT:  (Laughs.)  It does.

    MR. MUSK:  It’s — it’s like fair is fair.

    THE PRESIDENT:  Nobody can argue with me.  You know, the media can’t argue — I said — they said, “Tariffs — you’re going to charge tariffs?”  You know, if I said, like, 25 percent they’d say, “Oh, that’s terrible.”  I don’t say that anymore —

    Q    Can I — (inaudible) —

    THE PRESIDENT:  — because I say, “Whatever they charge, we’ll charge.”  And you know what? 

         Q    They stop.

         THE PRESIDENT:  They — then they say, “Oh, that sounds fair.”

    MR. MUSK:  All the president is saying is that —

         Q    (Inaudible.)

         MR. MUSK:  — it needs to be at a level playing field and — and fair and square.

    Q    Yeah.  And how does — how —

    THE PRESIDENT:  And we’re going to make a lot of money and a lot of businesses are going to come pouring in.

    MR. MUSK:  How can you argue with a fair and square situation?

    Q    Don’t — don’t you think most of them will look at the — the — for example, without America, China’s economy will tank.  They need our business. 

    THE PRESIDENT:  They do.  Everybody needs us. 

    Q    Everybody needs it. 

    THE PRESIDENT:  And you know what?

    Q    Do- — don’t you think they’ll stop?

    THE PRESIDENT:  We only have so long left where we’re in this position.  We’re the bank, and the bank is getting smaller and smaller and smaller.  We — we’re the bank.  We got to do this now.  We can’t wait another 10 years and have a shell of a country left, because that’s what was going to happen.

    Q    Mr. President —

    THE PRESIDENT:  This country — if I didn’t win this election and have people like this man right here that really do care, because that’s the other word — if you don’t care, you could be the smartest guy in the world, it’s not going to matter.  But if we didn’t win this election, I’m telling you, we would not have had a country for very long.

    Q    How quickly —

    MR. MUSK:  May I say —

    Q    — do you balance the budget and — and when do we start paying down that debt?

    THE PRESIDENT:  Well, potentially, very quickly, between what he’s doing and with income coming in from tariffs and other things.  I mean, I hope we can — I don’t want to give a date, because then these people are going to say, “Oh, well, he didn’t make the date.”  But I think we can do it very quickly. 

    We would have never done it if this didn’t happen.  Never.  It would have never been — it would only get worse and worse, and ultimately, it would have exploded. 

    This country was headed down a very bad track.  And the whole DEI thing, that was — that was a trap.  That was a sick trap.

    Q    (Inaudible.)

         MR. MUSK:  (Inaudible.)

    THE PRESIDENT:  And, you know, we’ve destroyed that.  That’s gone.  That’s pretty much gone. 

    Q    I agree. 

         MR. MUSK:  (Inaudible) —

         Q    We’re not — we’re not funding it. 

    MR. MUSK:  If — I really want to — I really want to emphasize to people that — this is a very important point — if we don’t solve the deficit, there won’t be money for medical care.  There won’t be money —

    THE PRESIDENT:  Right.

    MR. MUSK:  — for Social Security.  We either solve the deficit or all we’ll be doing is paying debt.

    Q    Nobody — 

    MR. MUSK:  It’s — it’s got to be solved, or there’s no medical care, there’s no Social Security, there’s no nothing.  That’s got to be solved.  It’s not optional.  America will go bankrupt if this is not done.  That’s why I’m here. 

    Q    The president’s —

    THE PRESIDENT:  Europe takes advantage of us.

    MR. MUSK:  And — and I’d like to also just send a message — like, because, as the president said, like, this — there’s a lot of rich people out there.  They should be caring more about the country because — the reason they should be caring about — more about country is: America falls, what do you think is going to happen to your business?  What do — what do you think — do you think you’re be going to be okay if — if the ship of America sinks?  Of course not. 

    Like, what — what I’m doing here, what the president is doing is it’s just long-term thinking.  The ship of America must be strong.  The ship of America cannot sink.  If it sinks, we all sink with it.

         THE PRESIDENT:  Sean, you’re a —

    Q    This is what — this is what drives you? 

    MR. MUSK:  Yes.

    Q    This is important.  It says “tech support.”  So, you’re not trying to be president, as the media suggests.  You are really here because your heart and your passion is this.  And the president described you as being — this is the biggest thing you ever done.  Now you trying to bring sight to —

    THE PRESIDENT:  There could be nothing bigger.  There’s nothing —

    Q    You’re sending ships up to Mars — you know, spaceships up in the sky all the time —

    THE PRESIDENT:  That’s peanuts.

    Q    — and saving astronauts.  That’s pretty big. 

    THE PRESIDENT:  That’s peanuts compared to what we’re talking about.

    Q    It’s peanuts?

    THE PRESIDENT:  Yeah.

    Q    Do you agree with that?

    MR. MUSK:  Well, it’s esse- — it’s essential that America be healthy, that America’s economy be strong.  And — and if that — if — basically, like, my concern is like, if — if — America is the central pillar holding up Western civilization.  That pillar must be strong.  If that pillar falls, the whole roof comes crashing down.

    THE PRESIDENT:  Including his ships.

    MR. MUSK:  There’s no place to hide.

    THE PRESIDENT:  Including his ships going up.

    MR. MUSK:  There’s no place to run.

    THE PRESIDENT:  Nothing.  There’s nothing left. 

    Q    Why — why, if this is your goal, your motivation, you’re losing money in the process, you’re offeri- — you do all these nice things for people for free; you’re trying to solve, you know, blindness; you’re going to rescue astronauts; you help the people in North Carolina, California; you’re cutting money that was sent abroad that’s not helping the American people, then why the rage —

    MR. MUSK:  Actually, I think it was like —

         Q    But why this rage?

         MR. MUSK:  — it was not helping the American people and hurting people overseas, to be clear.

    Q    Why this rage against you now?  First, they hated him.  Now they hate both of you. 

    MR. MUSK:  Well, I think we’re seeing an antibody reaction from — from those who are receiving the — the wasteful and fraudulent money. 

    Q    They’re being exposed. 

    MR. MUSK:  Yes.

    Q    Nobody wants to be exposed when you’re corrupt. 

    MR. MUSK:  I’ll — I’ll tell you a lesson I learned at PayPal.  You know who complained the loudest — the quickest and the loudest and with the most amount of righteous indignation?  The fraudsters.  That’s who complained first, loudest, and — and they would generally have this immense overreaction.  That’s how we knew there were the fraudsters.  That’s how we knew.  There’s a tell.

    Q    What di- — I’ve never — I’ve never met you before today.

    MR. MUSK:  Yeah.

    Q    And it’s nice to meet you, by the way.  Thank — thank you for doing this. 

    You guys are really friends.  I could s- — you guys — I could see you kicking up your shoes.

    THE PRESIDENT:  Well, he doesn’t do this kind of thing.  And the way I figured that you’d get to know him is if I did it with him.  I said, “Come on, let’s do it together.”  He doesn’t do this. 

    I think he’s smarter not doing it, overall.  Because, you know, I mean, he’s done very well without doing it.  But he doesn’t feel it’s really worthwhile.  He wants the product to speak for itself, or whatever he does speak for itself.  But he views it as — you know, does it matter? 

    And I’m doing this with you today because I wanted to have people understand him.  And I think it’s very important — I disagree with him.  I think it’s very important that they do understand him. 

    He doesn’t need this.  He doesn’t need it.  Now, I happen to think it’s made him very popular.  I think it — he’s more popular now because there are so many people — you know, you’re talking about the radical left — they have the lowest ratings.  MSNBC is dying.  CNN is dying.  They’re all dying.  The New York Times is doing lousy.  The Washington Post is doing horribly.  They’re all doing badly because people don’t buy it anymore. 

    But I think it was important that he do this one interview.  You’ve been a very fair guy.  I think you were the right guy to do it.  If we could get some radical left guy — and he’d do just as well, frankly, because it’s all about common sense.

    Q    They would attack him —

    THE PRESIDENT:  But this — Sean —

    Q    — as being unconstitutional, not — a fascist. 

    THE PRESIDENT:  — to me this was a — it was important for people to understand, he’s doing a big job.  He’s doing a very thankless job.  He’s doing a thankless job, but he’s helping us to save our country. 

    Our country was in serious trouble, and I had to get the best guy, somebody with credibility, because if he were just a regular, good — very good, solid businessman, he wouldn’t have the credibility.  He’s got the best credibility for this. 

    And people also know he’s an honest guy.  He’s an honest guy.  He’s just a very, very smart guy who’s done amazing things.  And this will be the biggest thing he’s ever done, because, you know, his companies are all great.  But if this country goes bad — I guess where he is a little selfish is this.  He knows one thing and probably doesn’t think — but if his — if this country goes bad, his stuff is not going to be worth very much, I can tell you.

    MR. MUSK:  Well, I’d say, if the — if the ship of America sinks, we’re all go- — going down with it.  You know, this idea that people can escape to New Zealand or some other place is false.  If the central pillar of Western civilization that is America falls, the whole roof comes crashing down and there is no escape. 

    Q    It’s amazing, since you’ve been elected, to watch Canada, Mexico, Venezuela, Colombia — I — I was shocked at the statements that Vladimir Putin made about you.  I — I was shocked at the hostage release.  I was shocked that Venezuela had done it — had done it.  Zelenskyy wants a deal.  Putin wants a deal. 

    THE PRESIDENT:  All good statements.

    Q    King Abdullah was interested.

    THE PRESIDENT:  You mean by that all good statements.  Look, they respect the president of this country.  They respect — they did not respect the last president.  They laughed at him, and they laughed at our country, and he’s done great damage to our country. 

    Q    Have foreign leaders told you what they thought of Biden?

    THE PRESIDENT:  Yeah, they have, but I’d rather not say.  They — they have.  It’s not — it — look —

    Q    It’s the obvious. 

    THE PRESIDENT:  He was not George Washington, let’s put it that way. 

    MR. MUSK:  (Inaudible.)

    THE PRESIDENT:  Not the greatest. 

    Q    Sorry, if that’s (inaudible).

    THE PRESIDENT:  He’s done a tremendous disservice. 

    Q    Will you be here —

    THE PRESIDENT:  And, by the way, the Democrats have done a great disservice, and they ought to get their act together and use a little judgment, and they ought to work with us on straightening out this mess that — 

    Q    Who?  John Fetterman?

    THE PRESIDENT:  — a lot of people have —

    Q    Maybe?  Who — what Democrat is not radicalized? 

    THE PRESIDENT:  Actually, you mention John.

    Q    John Fetterman. 

    THE PRESIDENT:  He’s become the best voice in the Democrat party.  You know, I had lunch with him, and I thought he was terrific, but he’s a much different man than he was before he had this difficulty.  He used to be radical left, and I think he became much smarter, actually.  He’s really — he’s really a voice of reason. 

    But the Democrats have to get together.  They have to get their act together, because the stuff they — they talk about makes no sense.  It makes — none whatsoever.  And they must know it.  They must know.

    MR. MUSK:  Yeah.  I mean, like, the country has spoken very clearly and rejected the core tenets of the Demo- — Democratic Party.  The country voted t- — fo- — I mean, the country made the — America has made its vote clear.  The president won the popular vote decisively.  The Republicans won the House.  Repub- — Republicans won the Senate.  What more do you need?

    The Democratic Party needs to take a hard look in the mirror and — and change their ways. 

    Q    I think they went from shock, denial, into the depression stage of grief, and now they’re in the rage stage, where I anticipate they’ll stay for four years, and if they get the chance, they’ll want to impeach him 10 times.  Do you anticipate you’ll be here in four years?  My last question.

    MR. MUSK:  I’ll — I’ll be as helpful as long as I can be helpful.

    THE PRESIDENT:  That’s a good question.  I mean, I was thinking about that just now.  I said, “I wonder how long he’s going to be doing it.”  You can’t get somebody like this.  He cares, and he’s brilliant, and he’s got energy. 

    You need energy, also, in addition to those other things.

    You know, I have a lot of guys that are very smart, but they have no energy.  They want to sleep all day long.  You need a lot of energy.  He’s got a lot of energy.  He’s doing a great job. 

    If there’s any conflict, he — he will stop it.  But if he didn’t, I’d stop it.  I’d see if there’s a conflict.  I mean, we’re talking about big stuff.

    But he’s under a pretty big microscope. 

    MR. MUSK:  Yeah, seriously.

    THE PRESIDENT:  I mean, everybody is watching him.  If there’s a conflict, you’re going to be reading about it within about two minutes after the conflict.

    MR. MUSK:  Exactly.  There — there’s — the possibility of me getting away with something is 0 percent — 0.0.  I — I’m scrutinized to a ridiculous degree. 

    And — and the other thing is that we — you know, what — what’s — you know what’s better than saying “trust — trust me” is just full transparency.  So, what we’re doing with — with the DOGE — DOGE dot — just go to DOGE.gov.  You can see every single action that’s being taken. 

    And now –and I want to be clear, we are going to make some mistakes.  We’re not going to be perfect.  Nobody bats a thousand.  But we’re going to fix the mistakes very quickly.  That’s what matters: not that you don’t make mistakes, but that you fix the mistakes very fast. 

    THE PRESIDENT:  And you’re going to ask the other side, when they talk about, “This is a constitutional crisis,” you got to a- — what are they paying for?  Where are those tax — because when you read off the list of things, it’s a big con job.  See, when they talk Constitution —

    MR. MUSK:  Totally.

    THE PRESIDENT:  — it’s a total con job.

    MR. MUSK:  Yes.

    THE PRESIDENT:  They never talk — and I watch some of the shows —

    MR. MUSK:  It’s specifics — they avoid specifics.

    THE PRESIDENT:  Yeah, when you start talking about how did — how come they spent money on transgender here and transgender there —

    MR. MUSK:  Yeah, totally.

    THE PRESIDENT:  — and all the stuff in some country that nobody ever heard of, they don’t want to talk about it.  They just talk about, “This is a constitutional crisis.” 

    Q    It shocks the conscious.

    THE PRESIDENT:  The money is being squandered purposely — tremendous theft, tremendous kickbacks, everything — and we’re straightening it out.  And thank goodness.  I look up, and I say, “Thank you,” because I think if it went on for four more years, it would not be salvageable.  You wouldn’t be able —

    MR. MUSK:  Absolutely.

    THE PRESIDENT:  You wouldn’t be able to save it. 

    Q    You believe, too, that when you were in Butler, came within a millimeter being assassinated —

    THE PRESIDENT:  Yeah.

    Q    The day you endorsed him, that was that day.

    MR. MUSK:  Yes.

    Q    But you had been planning on it?

    MR. MUSK:  Yeah.

    Q    Pretty — I think everybody will never forget that iconic blood on your face.  “Fight, fight, fight.”  I actually was afra- — watching it and thought you might drop again.  You know, I didn’t know if it had hit you.  You can sometimes get up and then the blood starts to accumulate.  It was scary — pretty scary. 

    MR. MUSK:  Well, I mean, th- — this is how you know someone’s true character, because everyone can say they’re brave, but the president was actually shot.  Okay?  Courage under fire.  “Fight, fight, fight,” blood streaming down the face.  That’s true courage.  You can’t fake that. 

    Q    Yeah.  Thank you both. 

         Mr. President, thank you, sir. 

    THE PRESIDENT:  Thank you very much. 

    Q    Appreciate it.  Elon, thank you for your time.  Really nice to meet you. 

                                  END                    1:01 P.M. EST

    MIL OSI USA News –

  • MIL-OSI USA: Durbin Slams Senate Republicans For Blindly Supporting Kash Patel For FBI Director Despite Serious Concerns On Fitness To Serve

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    February 18, 2025

    Ahead of procedural vote, Durbin: “My Senate Republican colleagues are willfully ignoring myriad red flags about Mr. Patel, especially his recurring instinct to threaten retribution against his and President Trump’s perceived enemies.”

    WASHINGTON – Ahead of tonight’s procedural vote on the nomination of Kash Patel to be Director of the Federal Bureau of Investigation (FBI), U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, spoke on the Senate Floor regarding his serious concerns about Mr. Patel, which includes whistleblower reports that Mr. Patel has been personally involved in the ongoing purge of FBI officials.

    Key Quotes:

    “After meeting with Mr. Patel, reviewing his record, and questioning him under oath at his hearing, I am deeply concerned about his fitness to serve as FBI Director. He has neither the experience, the judgment, nor the temperament to lead the FBI.”

    “My Senate Republican colleagues, sadly, are willfully ignoring myriad red flags about Mr. Patel, especially his recurring instinct to threaten retribution against his political enemies and President Trump’s perceived enemies. This is an extremely dangerous characteristic for someone who seeks to lead the nation’s most powerful domestic investigative agency for the next 10 years.”

    “On day one, [Kash Patel] plans to ‘shut down the F.B.I. Hoover Building and reopen it the next day as a museum of the ‘deep state.’’ He even wrote a book on this subject, and I punished myself by requiring that I read it from cover to cover so I understood exactly what this man believed. He has peddled outrageous conspiracy theories that benefit President Trump, claiming that January 6th—the assault on the Capitol—was ‘never an insurrection’ and that the FBI ‘was planning January 6 for a year.’ Where is this man coming up with these wild theories?”

    “He compiled an enemies list and published it in the back of his book. Sixty names—‘members of the deep state,’ which includes distinguished public servants from both political parties—like former Attorneys General Bill Barr and Merrick Garland and former FBI Directors Robert Mueller and Chris Wray as the so-called ‘members of the deep state’… whatever that may be.”

    “[Patel] decided to assemble a choir of the January 6th individuals who were prosecuted. Then he was involved in making a recording of a patriotic song that these prisoners were singing. Then, he was selling this recording and playing it at the rallies for President Trump… which he denied during our hearing, under oath.”

    “Before even being confirmed as the FBI Director, Mr. Patel is already seeking retribution on behalf of President Trump despite Patel’s status as a private citizen. Multiple whistleblowers have disclosed highly credible information to my staff, indicating that Mr. Patel has personally directed the ongoing purge of senior law enforcement officials at the FBI. Senior leaders with collectively hundreds of years of experience have been forced out at the FBI, creating a leadership vacuum.”

    “In the FBI’s long history, this has never happened before—never. Keep in mind that the Director is the only [political] appointee at the FBI, and [that] the leaders have been forced out despite their career commitment to law enforcement. This purge has dramatically weakened FBI’s ability to protect the country from national security threats and made America less safe.”

    “If these whistleblower allegations are true that Kash Patel, as a private citizen, has been orchestrating the purging of the ranks at the FBI because of political loyalty questions, I will tell you that he came dangerously close to perjuring himself during his nomination hearing when he was asked about the possible firings of FBI officials and he answered, under oath, ‘I don’t know what’s going on right now’ at the FBI. Mr. President, we’re told that’s not true.”

    “Mr. Patel has been open about his plans to dismantle the FBI and seek retribution against his and President Trump’s enemies. His directives as a private citizen have already thrown the Bureau into absolute chaos.”

    “Mr. Patel’s recent actions and testimony before the Senate Judiciary Committee confirm my belief that he is dangerous, inexperienced, and he’s been dishonest in portraying his role in what’s happening at the FBI.”

    “It will be a political and national security disaster if he is confirmed.”

    Video of Durbin’s remarks on the floor is available here.

    Audio of Durbin’s remarks on the floor is available here.

    Footage of Durbin’s remarks on the floor is available here for TV Stations.

    -30-

    MIL OSI USA News –

  • MIL-OSI Security: Long Beach Man Who Was Getaway Driver in Fatal Armed Robbery of Victim Dealing Marijuana in Inglewood Pleads Guilty to Federal Charges

    Source: Office of United States Attorneys

    LOS ANGELES – A Long Beach man pleaded guilty today to federal criminal charges for his role in the March 2021 murder of a victim in Inglewood during a marijuana deal.   

    Mateo Paul, 22, pleaded guilty to one count of interference with commerce by robbery (Hobbs Act) and one count of brandishing and discharging a firearm in furtherance of a crime of violence. Paul has been in custody since November 2023.

    “This defendant’s recklessness led to a victim’s violent death and the prospect of a life sentence in federal prison,” said Acting United States Attorney Joseph T. McNally. “When local and federal law enforcement work together – as we did in this case – we can bring severe punishment for perpetrators of violent gun crime.”

    According to his plea agreement, in March 2021, Paul and co-defendants Leandrew Raglin, 22, of Lancaster, and Iysis Elanore Smith, 22, of Inglewood, agreed to rob a marijuana dealer at gunpoint. They devised a plan to lure the dealer via a social media application to a meeting location, where they would ambush him at gunpoint and steal his marijuana.

    On March 15, 2021, Smith approached the vehicle occupied by the victim. While Smith distracted the victim, Paul and Raglin parked behind the victim’s vehicle. Raglin then exited the vehicle Paul was driving, approached the passenger side of the victim’s car and opened fire, repeatedly wounding the victim in the passenger seat. Raglin then walked around to the driver’s side of the vehicle and opened fire, fatally wounding the victim in the driver’s seat of the vehicle, according to court documents.

    Raglin’s brandishing and discharge of the firearm fell within the scope of Paul’s criminal agreement and could reasonably have been foreseen to be a necessary or natural consequence of the unlawful agreement, the plea agreement states.

    United States District Judge Fernando L. Aenlle-Rocha scheduled a June 27 sentencing hearing, at which time Paul will face a statutory maximum sentence of life in federal prison.

    Raglin has pleaded not guilty to the charges in the indictment against him in this case and is scheduled to go to trial on May 19. The criminal charges against Smith are still pending. Both defendants face potential life sentences.

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

    The FBI and the Inglewood Police Department investigated this matter.

    Assistant United States Attorneys Chelsea Norell of the Violent and Organized Crimes Section and Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: 52-Month Prison Sentence for a D.C. Convicted Felon Who Traveled to the Jersey Shore to Rob an Overnight Pharmacy

    Source: Office of United States Attorneys

               WASHINGTON – Ashawntea Henderson, 32, of Washington, D.C., was sentenced today in U.S. District Court in Washington D.C. to 52 months in federal prison for participating in an early morning robbery of a drug store at the Jersey Shore. During the May 2020 robbery, he and his co-conspirators jumped the counter, overpowered the night pharmacist, stole thousands of prescription narcotics, and then – as they attempted to flee to the District – crashed into a responding police cruiser.

               The sentencing was announced U.S. Attorney Edward R. Martin, FBI Special Agent in Charge Sean Ryan of the Washington Field Office Criminal and Cyber Division, and FBI Special Agent in Charge Brian Driscoll of the Newark Field Office.

                Henderson pleaded guilty on October 30, 2024, to interference of commerce by robbery (Hobbs Act robbery). In addition to the 52-month prison sentence, Judge Amy Berman Jackson ordered Henderson to serve three years of supervised release.

    According to court documents, Henderson and his co-conspirators researched potential targets including Walgreens and CVS pharmacies which were open all night. On May 9, 2020, Henderson and others drove more than 200 miles from Washington, D.C. to a Walgreens Pharmacy on State Road 33, in Neptune, New Jersey.

    At 3:09 a.m., Henderson and two others dressed in masks and gloves entered the Walgreens. All three jumped over the pharmacy counter and demanded codeine, Adderall, and Percocet. One of the co-conspirators grabbed the night pharmacist, demanded that he open the locked cabinets containing additional pills, and forced the pharmacist to assist them. After grabbing thousands of prescription medicines – including Oxycodone, morphine, amphetamine, and Nucynta – Henderson and the two co-conspirators fled in a black Nissan Altima operated by a fourth co-conspirator. At one point, the Nissan collided with a responding police officer’s patrol car but continued at high speed back to Washington D.C.

    After returning to the District, as they celebrated at a hotel, one of the co-conspirators received a text from a known drug distributor asking the price for a drug of the same type stolen from Neptune, New Jersey. The co-conspirator and the drug distributor continued to exchange texts about the sale of drugs for the following weeks.

               Henderson is currently serving a five-year prison sentence in Maryland in connection with his 2022 possession of a firearm. 

               The case was investigated by the FBI Washington Field Office’s Violent Crimes Task Force and the Neptune Township Police Department. The matter is being prosecuted by AUSAs Justin Song, Sarah Martin and Cameron Tepfer.

    23cr190

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  • MIL-OSI Security: Operation Smoke and Mirrors Update: Charleston Man Sentenced to 14 Years in Prison for Role in Methamphetamine Trafficking Organization

    Source: Office of United States Attorneys

    CHARLESTON, W.Va. – Tres Avery Davis, 36, of Charleston, was sentenced today to 14 years in prison, to be followed by four years of supervised release, for possession with intent to distribute 40 grams or more of a mixture and substance containing fentanyl. Davis admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.

    According to court documents and statements made in court, on March 7, 2023, Davis delivered approximately 2,000 blue pills containing fentanyl to a Kemp Avenue residence in Charleston. Law enforcement seized the pills at the residence on March 9, 2023. Davis admitted that he intended to distribute at least some of these pills to other people.

    Davis is among 31 defendants convicted of federal crimes as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.

    Davis dealt directly with a fentanyl supplier and personally acquired fentanyl pills for redistribution as part of his role in the DTO. Davis also recruited a co-conspirator to act as a courier to transport fentanyl pills from Columbus, Ohio, to Charleston, West Virginia.

    Davis also distributed methamphetamine as part of his role in the DTO.  He was responsible for 1.5 pounds of methamphetamine that were seized from a location in Charleston, and performed several methamphetamine transactions during the course of the investigation.  Davis admitted that he sold methamphetamine in one-half pound to one pound quantities. 

    Davis has a long criminal history that includes more than a dozen prior convictions for such offenses as being a prohibited person in possession of a firearm, distribution of cocaine base, possession of a controlled substance, and domestic battery.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff’s Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department..

    United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31.

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  • MIL-OSI Security: Utah Man Accused of Bank Robbery in Custody

    Source: Office of United States Attorneys

    SALT LAKE CITY, Utah – A Utah man was indicted by a federal grand jury in Salt Lake City after he allegedly robbed two banks on two different days in Salt Lake County.  

    Robert Buckley Hardy, 47, of Salt Lake County, Utah, was originally charged by complaint on February 7, 2025, and taken into custody.

    According to court documents, Hardy, entered a Chase Bank in Cottonwood Heights on January 30, 2025, at approximately 3:17 p.m. Hardy allegedly asked the bank teller if an appointment was necessary and was told no. Hardy then handed the teller a manila envelope with several documents and left the bank. The documents referenced several United States and government actions regarding money laundering, drug trafficking, sex trafficking, and corruption. One document also stated, “assume that this is an active bomb threat.” One document read, “I need $2001 for it to be considered a felony and get the un-kompromised FBI bank robbery division to respond.”

    Court documents allege, on February 6, 2025, Hardy entered a Chase Bank in Salt Lake City at approximately 2:04 p.m. Hardy allegedly told the teller it was a robbery and gave the teller various manila envelopes with documents inside and a typed note that read, “poor people steal because they are hungry. Rich people steal because they are greedy.” The note also said, “I need this evidence chain in the hands of the FBI bank robbery division and the local and federal police.” The note read, “please stuff at least $2001 into the bag for me. And make certain the FBI gets this.” The teller complied and gave Hardy $2001.00.

    Surveillance footage from the investigation and a Utah Driver’s License photo identified Hardy. Hardy was taken into custody without incident.

    Hardy is charged with bank robbery. His initial appearance on the indictment is February 21, 2025, at 11:45 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.  

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

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

    Assistant United States Attorney Carlos A. Esqueda of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.

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

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

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  • MIL-OSI Security: Former Great Falls woman sentenced to prison for 2021 crash on the Blackfeet Indian Reservation that seriously injured passenger

    Source: Office of United States Attorneys

    GREAT FALLS — A former Great Falls woman who was convicted by a federal judge for a December 2021 crash on the Blackfeet Indian Reservation in which a juvenile passenger suffered serious injuries was sentenced on Feb. 12 to 14 months in prison, to be followed by three years of supervised release, Acting U.S. Attorney Timothy J. Racicot said today.

    After a one-day bench trial on Aug. 27, 2024, Chief U.S. District Judge Brian M. Morris found the defendant, Noblee Rose Littledog, 23, currently of Aberdeen, Washington, guilty of assault resulting in serious bodily injury as charged in an indictment. At sentencing, the court allowed Littledog to self-report to prison.

    In court documents and at trial, the government alleged that on Dec. 1, 2021, Littledog was driving a 2019 Jeep Cherokee on the Blackfeet Indian Reservation with the victim, a passenger identified as Jane Doe, who was 17 years old. While driving on Badger Creek Road, Littledog attempted to pass two vehicles at the same time while driving 105 mph. Littledog lost control of the vehicle and overcorrected, causing the vehicle to leave the roadway and roll several times before coming to rest right side up. Both Littledog and the victim were seriously injured. Jane Doe suffered severe trauma to her lower extremities, underwent multiple surgeries and has permanent damage.

    The government presented evidence at trial that seconds before the crash, Littledog was traveling at a minimum speed of 105 mph. The evidence also showed that both occupants were restrained at the time of the crash. Jane Doe reported that Littledog had consumed alcohol on the drive, and Littledog told law enforcement at the hospital that she had consumed two alcoholic beverages approximately 30 to 40 minutes before the crash.

    The U.S. Attorney’s Office prosecuted the case. Blackfeet Law Enforcement Services, the Montana Highway Patrol and the FBI, with assistance from the Cut Bank Police Department, conducted the investigation.

    XXX

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  • MIL-OSI Security: St. Louis County Man Accused of Child Sex Trafficking

    Source: Office of United States Attorneys

    ST. LOUIS – A man from Northwoods, in St. Louis County, Missouri, has been accused of child sex trafficking.

    Rodarius Servick, 50, was indicted in U.S. District Court in St. Louis Thursday on one count of child sex trafficking and one count of travel with intent to engage in illicit sexual conduct. He appeared in court and pleaded not guilty Tuesday.

    The indictment accuses Servick of recruiting, enticing, harboring, transporting or providing a minor for a commercial sex act between August 19, 2024, and Sept. 13, 2024, and transporting that minor across state lines for the purpose of prostitution on August 19.

    Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

    A motion seeking to have Servick held in jail until trial says law enforcement learned on Sept. 13, 2024, of a runaway juvenile that was being trafficked. Detectives found an advertisement with her picture online, and the St. Louis County Police Department conducted an undercover operation that recovered the girl days later.

    The FBI, the St. Louis County Police Department and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorney Dianna Edwards is prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Security: Sylmar Man Sentenced to 10 Years in Federal Prison for Using Instagram to Advertise and Distribute Child Sexual Abuse Material

    Source: Office of United States Attorneys

    LOS ANGELES – A San Fernando Valley man was sentenced today to 120 months in federal prison for using Instagram to advertise sexually explicit images of high school girls without their permission, to distribute child sexual abuse material (CSAM) and to threaten victims who objected to his behavior.         

    Alejandro Garcia Aranda, 23, of Sylmar, was sentenced by United States District Judge Stanley Blumenfeld Jr., who also ordered him to pay $45,000 total restitution to 15 victims. In sentencing Garcia Aranda, Judge Blumenfeld emphasized the “cruel,” “callous,” and “monstrous” nature of the offense.

    Garcia Aranda pleaded guilty in November 2024 to one count of distribution of child pornography. He has been in federal custody since July 2024.

    In April and May of 2020, Garcia Aranda used the Instagram handle “valleyhoezzz818” with the self-proclaimed goal of “[e]xposing all valley hoes with their @’s” to target local girls who attended schools in the San Fernando Valley.

    Using Cash App, PayPal, Venmo, and Zelle, Garcia Aranda received payments from customers who wanted to obtain sexually explicit content of the victims that he had advertised and offered to sell on the Instagram account. After receiving and confirming payment, using the Instagram account, Garcia Aranda then sent a direct message to customers and provided a link to a zip file containing the CSAM.

    When victims discovered that sexually explicit materials depicting them were being advertised and disseminated by Garcia Aranda and requested that he stop and remove them, Garcia Aranda attempted to extract further additional sexually explicit material from them, including by threatening to post additional photographs.

    Garcia Aranda admitted to knowingly distributing CSAM – three sexually explicit videos and one sexually explicit image involving children – in May 2020. Garcia Aranda further admitted to possessing more than 600 images of CSAM. 

    The FBI investigated this matter.

    Assistant United States Attorney Kathy Yu prosecuted this case.

    MIL Security OSI –

  • MIL-OSI: SiriusPoint reports ninth consecutive quarter of underwriting profits with FY Core combined ratio of 91.0%

    Source: GlobeNewswire (MIL-OSI)

    HAMILTON, Bermuda, Feb. 18, 2025 (GLOBE NEWSWIRE) — SiriusPoint Ltd. (“SiriusPoint” or the “Company”) (NYSE:SPNT) today announced results for its fourth quarter ended December 31, 2024

    • Combined ratio of 90.2% in the fourth quarter for Core business, representing a 3.2 point improvement versus prior year, resulting in a full year 2024 Core combined ratio of 91.0% and Core underwriting income of $200 million
    • Growth in the quarter of 21% on gross premiums written for continuing lines business (excluding 2023 exited programs), contributing to 10% growth for the full year
    • Fourth quarter net loss of $21 million, materially impacted by three significant items linked to our efforts to reposition the Company, including the CM Bermuda repurchase transaction, closure of previously announced LPT transaction with Enstar, and the write-down of a single MGA investment. This marks the end of the significant reshaping of the Company
    • Underlying net income of $44 million in the fourth quarter contributing to $304 million for the full year, up 14% versus prior year
    • Return on equity for 2024 of 9.1%, or 14.6% on an underlying basis and at the upper end of the target range of 12-15%
    • Book value per diluted common share (ex. AOCI) of $14.64, up 2.7% in the quarter and up 9.8% from December 31, 2023. Balance sheet remains strong post CM Bermuda transaction with Q4’24 BSCR estimate at 214%
    • Permanent retirement of the 45.7 million common shares repurchased from CM Bermuda on closure of the transaction, driving greater than 20% earnings per share accretion

    Scott Egan, Chief Executive Officer, said: “2024 has been a remarkable year of delivery for SiriusPoint. Despite increased catastrophe activity, our Core combined ratio has improved meaningfully from last year to 91.0%, excluding the impact from the loss portfolio transfer in 2023. Our 4.2 point improvement in attritional loss ratio demonstrates our focus on improving the quality of our underwriting. We saw 21% growth of gross premiums written for the quarter and 10% for the full year for our continuing lines business.

    Our underlying return on equity of 14.6% is at the upper end of the 12-15% target range set out a year ago. In optimizing our capital position, we have returned over $1 billion to investors during 2024 while maintaining robust capital ratios, due to our strong performance, reshaping actions, and capital generation over the past two years.

    We have strengthened our underlying business performance year-over-year, providing a strong basis for 2025. While this quarter our net income was impacted by several one-off items, we see 2024 as the end of the repositioning and reshaping of the Company. Our efforts are now fully focused on both growing the business and continuing to enhance performance.

    I take great pride in the accomplishments of the SiriusPoint team, who have worked with commitment and dedication to produce improvements in our underlying results, quarter after quarter. I am immensely grateful for all that they do every day for our customers, partners and shareholders.”

    Fourth Quarter 2024 Highlights

    • Net loss attributable to SiriusPoint common shareholders of $21.3 million, or $0.13 per diluted common share
    • Core income of $66.7 million, including underwriting income of $56.3 million, Core combined ratio of 90.2%
    • Core net services fee income of $10.4 million, with service margin of 20.2%
    • Net investment income of $68.9 million and total investment result of $29.0 million
    • Book value per diluted common share decreased $0.13 per share, or 0.9%, from September 30, 2024 to $14.60
    • Annualized return on average common equity of (4.0)%

    Year Ended December 31, 2024

    • Net income available to SiriusPoint common shareholders of $183.9 million, or $1.04 per diluted common share
    • Core income of $244.6 million, including underwriting income of $200.0 million, Core combined ratio of 91.0%
    • Core net services fee income of $46.7 million, with service margin of 21.0%
    • Net investment income of $303.6 million and total investment result of $224.6 million
    • Book value per diluted common share increased $1.25 per share, or 9.4%, from December 31, 2023 to $14.60
    • Return on average common equity of 9.1%
    • Debt to capital ratio increased to 24.8% compared to 23.8% as of December 31, 2023

    Key Financial Metrics

    The following table shows certain key financial metrics for the three and twelve months ended December 31, 2024 and 2023:

           
      Three months ended   Twelve months ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
      ($ in millions, except for per share data and ratios)
    Combined ratio   94.4 %     93.6 %     88.3 %     84.5 %
    Core underwriting income (1) $ 56.3     $ 37.0     $ 200.0     $ 250.2  
    Core net services income (1) $ 10.4     $ 9.3     $ 44.6     $ 41.2  
    Core income (1) $ 66.7     $ 46.3     $ 244.6     $ 291.4  
    Core combined ratio (1)   90.2 %     93.4 %     91.0 %     89.1 %
    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders (4.0 )%     17.1 %     9.1 %     16.2 %
    Book value per common share $ 14.92     $ 13.76     $ 14.92     $ 13.76  
    Book value per diluted common share $ 14.60     $ 13.35     $ 14.60     $ 13.35  
    Book value per diluted common share ex. AOCI (1) $ 14.64     $ 13.33     $ 14.64     $ 13.33  
    Tangible book value per diluted common share (1) $ 13.42     $ 12.47     $ 13.42     $ 12.47  
    (1) Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See definitions in “Non-GAAP Financial Measures” and reconciliations in “Segment Reporting.” Book value per diluted common share ex. AOCI and tangible book value per diluted common share are non-GAAP financial measures. See definition and reconciliation in “Non-GAAP Financial Measures.”
       

    Fourth Quarter 2024 Summary

    Consolidated underwriting income for the three months ended December 31, 2024 was $32.7 million compared to $36.7 million for the three months ended December 31, 2023. The decrease was primarily driven by higher catastrophe losses, partially offset by an increase in favorable prior year loss reserve development. Catastrophe losses, net of reinsurance and reinstatement premiums, were $38.6 million, or 6.5 percentage points on the combined ratio, for the three months ended December 31, 2024 mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Favorable prior year reserve development was $37.3 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as in Insurance & Services, mainly due to lower than expected reported attritional losses in A&H, compared to $11.1 million for the three months ended December 31, 2023 which included reserve strengthening for specific areas of uncertainty for the loss reserves.

    Consolidated underwriting income for the year ended December 31, 2024 was $276.4 million compared to $375.9 million for the year ended December 31, 2023. The decrease was primarily driven by lower favorable prior year loss reserve development as the year ended December 31, 2023 included $127.8 million driven by reserving analyses performed in connection with the loss portfolio transfer transaction with Pallas Reinsurance Company Ltd that closed on June 30, 2023 (“2023 LPT”). Excluding the favorable development linked to the 2023 LPT, underwriting income increased by $15.8 million primarily driven by favorable development in Reinsurance, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses. Catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.3 percentage points on the combined ratio, for the year ended December 31, 2024, primarily driven by Hurricanes Milton and Helene, compared to $24.8 million, or 1.0 percentage points on the combined ratio, for the year ended December 31, 2023, primarily driven by the Turkey Earthquake and Chile Wildfire.

    Reportable Segments

    The determination of our reportable segments is based on the manner in which management monitors the performance of our operations, which consist of two reportable segments – Reinsurance and Insurance & Services.

    Collectively, the sum of our two segments, Reinsurance and Insurance & Services, constitute our “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. See reconciliations in “Segment Reporting”. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

    Three months ended December 31, 2024 and 2023

    Core Premium Volume

    Gross premiums written increased by $42.7 million, or 5.9%, to $762.5 million for the three months ended December 31, 2024 compared to $719.8 million for the three months ended December 31, 2023. Net premiums earned increased by $23.2 million, or 4.2%, to $581.6 million for the three months ended December 31, 2024 compared to $558.4 million for the three months ended December 31, 2023. The increases in premium volume were primarily driven by increases in Insurance & Services from strategic organic and new program growth, as well higher A&H premiums, and in Reinsurance in Specialty and Property from new business and renewal growth. These increases were partially offset by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $89.9 million of gross premiums written for the three months ended December 31, 2023.

    Core Results

    Core results for the three months ended December 31, 2024 included income of $66.7 million compared to $46.3 million for the three months ended December 31, 2023. Income for the three months ended December 31, 2024 consists of underwriting income of $56.3 million (90.2% combined ratio) and net services income of $10.4 million, compared to underwriting income of $37.0 million (93.4% combined ratio) and net services income of $9.3 million for the three months ended December 31, 2023. The improvement in net underwriting results was primarily driven by increased favorable prior year loss reserve development and lower attritional losses, partially offset by higher catastrophe losses.

    Losses incurred included $58.1 million of favorable prior year loss reserve development for the three months ended December 31, 2024 mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $37.7 million for the three months ended December 31, 2023 driven by management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves.

    Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2024, were $38.6 million, or 6.6 percentage points on the combined ratio, mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Despite increased catastrophe losses for the three months ended December 31, 2024, catastrophe losses for the year ended December 31, 2024 were in line with our expectations evidencing our actions to reduce our catastrophe exposed business during the last two years.

    Year ended December 31, 2024 and 2023

    Core Premium Volume

    Gross premiums written decreased by $134.3 million, or 4.1%, to $3,176.4 million for the year ended December 31, 2024 compared to $3,310.7 million for the year ended December 31, 2023. Net premiums earned decreased by $81.5 million, or 3.6%, to $2,199.1 million for the year ended December 31, 2024 compared to $2,280.6 million for the year ended December 31, 2023. The decreases in premium volume were primarily due to the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, with the most significant offset being strategic organic and new program growth within Insurance & Services.

    Core Results

    Core results for the year ended December 31, 2024 included income of $244.6 million compared to $291.4 million for the year ended December 31, 2023. Income for the year ended December 31, 2024 consists of underwriting income of $200.0 million (91.0% combined ratio) and net services income of $44.6 million, compared to underwriting income of $250.2 million (89.1% combined ratio) and net services income of $41.2 million for the year ended December 31, 2023. The decrease in net underwriting results was primarily driven by lower favorable prior year loss reserve development as the year ended December 31, 2023 included $104.8 million driven by reserving analyses performed in connection with the 2023 LPT.

    Excluding the favorable development linked to the 2023 LPT, net underwriting income increased by $49.0 million primarily driven by favorable development in Reinsurance, mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, as well as lower attritional losses in both Reinsurance and Insurance & Services, partially offset by higher acquisition costs from business mix changes, including the growth of Insurance & Services, and higher catastrophe losses.

    For the year ended December 31, 2024 catastrophe losses, net of reinsurance and reinstatement premiums, were $54.8 million, or 2.5 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $13.5 million, or 0.6 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia, for the year ended December 31, 2023.

    Reinsurance Segment

    Three months ended December 31, 2024 and 2023

    Reinsurance gross premiums written were $312.2 million for the three months ended December 31, 2024, an increase of $60.5 million, or 24.0%, compared to the three months ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.

    Reinsurance generated underwriting income of $18.3 million (93.2% combined ratio) for the three months ended December 31, 2024, compared to underwriting income of $27.8 million (88.6% combined ratio) for the three months ended December 31, 2023. The decrease in net underwriting results was primarily due to higher catastrophe losses, partially offset by increased favorable development. Catastrophe losses, net of reinsurance and reinstatement premiums, for the three months ended December 31, 2024, were $35.2 million, or 13.2 percentage points on the combined ratio, mainly from Hurricane Milton, compared to minimal losses for the three months ended December 31, 2023. Losses incurred included $41.8 million of favorable prior year loss reserve development for the three months ended December 31, 2024 mainly in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $21.1 million for the three months ended December 31, 2023 driven by management reflecting the continued favorable reported loss emergence through December 31, 2023 in its best estimate of reserves.

    Year ended December 31, 2024 and 2023

    Reinsurance gross premiums written were $1,335.6 million for the year ended December 31, 2024, an increase of $64.6 million, or 5.1%, compared to the year ended December 31, 2023, primarily driven by new business and renewal growth across Specialty and Property, partially offset by reduced premiums written in Casualty reflecting underwriting actions to improve profitability.

    Reinsurance generated underwriting income of $124.8 million (88.0% combined ratio) for the year ended December 31, 2024, compared to underwriting income of $206.2 million (80.0% combined ratio) for the year ended December 31, 2023. The decrease in net underwriting results was primarily due to decreased favorable prior year loss reserve development and higher catastrophe losses, partially offset by lower attritional losses. Net favorable prior year loss reserve development was $75.0 million for the year ended December 31, 2024 primarily driven by favorable development in Property and Specialty from reserve releases relating to prior year’s catastrophe events, compared to $140.8 million for the year ended December 31, 2023, which included $93.0 million driven by reserving analyses performed in connection with the 2023 LPT.

    For the year ended December 31, 2024, catastrophe losses, net of reinsurance and reinstatement premiums, were $49.5 million, or 4.7 percentage points on the combined ratio, which includes losses from Hurricanes Milton and Helene compared to $12.2 million, or 1.2 percentage points on the combined ratio, including losses from the Turkey Earthquake, Hawaii wildfires and Hurricane Idalia for the year ended December 31, 2023.

    Insurance & Services Segment

    Three months ended December 31, 2024 and 2023

    Insurance & Services gross premiums written were $450.3 million for the three months ended December 31, 2024, a decrease of $17.8 million, or 3.8%, compared to the three months ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $89.9 million of gross premiums written for the three months ended December 31, 2023, partially offset by strategic organic and new program growth, as well higher A&H premiums.

    Insurance & Services generated segment income of $48.4 million for the three months ended December 31, 2024, compared to $16.8 million for the three months ended December 31, 2023. Segment income for the three months ended December 31, 2024 consists of underwriting income of $38.0 million (87.9% combined ratio) and net services income of $10.4 million, compared to underwriting income of $9.2 million (97.0% combined ratio) and net services income of $7.6 million for the three months ended December 31, 2023. The improvement in underwriting results was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.

    Year ended December 31, 2024 and 2023

    Insurance & Services gross premiums written were $1,840.8 million for the year ended December 31, 2024, a decrease of $198.9 million, or 9.8%, compared to the year ended December 31, 2023, primarily driven by the movement of certain lines from Insurance & Services to Corporate, including the non-renewal of a Workers’ Compensation program and the planned transition of a Cyber program to another carrier, representing $421.8 million of gross premiums written for the year ended December 31, 2023, as well as lower A&H premiums, partially offset by strategic organic and new program growth.

    Insurance & Services generated segment income of $119.8 million for the year ended December 31, 2024, compared to income of $86.3 million for the year ended December 31, 2023. Segment income for the year ended December 31, 2024 consists of underwriting income of $75.2 million (93.5% combined ratio) and net services income of $44.6 million, compared to underwriting income of $44.0 million (96.5% combined ratio) and net services income of $42.3 million for the year ended December 31, 2023. The improvement in underwriting income of $31.2 million for the year ended December 31, 2024 compared to the year ended December 31, 2023 was primarily driven by our decreased loss ratio mainly from lower attritional losses, partially offset by higher acquisition costs from business mix changes as we grow our Insurance & Services segment.

    As of December 31, 2024, we have equity stakes in 20 entities (managing general agents (“MGAs”), Insurtech and Other) compared to 36 at the start of 2023. We continue to rationalize our MGA equity stakes and realize the significant off-balance sheet value of our consolidated MGAs, with 6 of these rationalized in 2024. Book value for our three consolidated MGAs was $90.1 million as of December 31, 2024, compared to $76.3 million at December 31, 2023, when adjusted to exclude Arcadian Risk Capital Ltd. which we deconsolidated on June 30, 2024.

    Investments

    Three months ended December 31, 2024 and 2023

    Total net investment income and realized and unrealized investment gains (losses) for the three months ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt portfolio of $61.2 million, partially offset by unrealized losses resulting from fair value analyses on our strategic investment portfolio.

    Total net investment income and realized and unrealized investment gains (losses) for the three months ended December 31, 2023 was primarily attributable to investment results from our debt and short-term investment portfolio of $68.5 million. This result was driven by interest income primarily on securitized assets and corporate debt positions, which made up 65.6% of our total investments as of December 31, 2023.

    Year ended December 31, 2024 and 2023

    Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2024 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $289.7 million, partially offset by unrealized losses on other long-term investments of $70.0 million. Increased investment income is primarily due to the rotation of the portfolio from cash and cash equivalents and U.S. government and government agency positions to high-grade corporate debt and other securitized assets, in an effort to better diversify our portfolio. Losses on private other long-term investments were the result of updated fair value analyses consistent with the current insurtech market trends and disposals of positions as we execute our strategy to focus on underwriting relationships with MGAs.

    Total net investment income and realized and unrealized investment gains (losses) for the year ended December 31, 2023 was primarily attributable to net investment income related to interest income from our debt and short-term investment portfolio of $277.0 million.

    Webcast Details

    The Company will hold a webcast to discuss its fourth quarter 2024 results at 8:30 a.m. Eastern Time on February 19, 2025. The webcast of the conference call will be available over the Internet from the Company’s website at www.siriuspt.com under the “Investor Relations” section. Participants should follow the instructions provided on the website to download and install any necessary audio applications. The conference call will be available by dialing 1-877-451-6152 (domestic) or 1-201-389-0879 (international). Participants should ask for the SiriusPoint Ltd. fourth quarter 2024 earnings call.

    The online replay will be available on the Company’s website immediately following the call at www.siriuspt.com under the “Investor Relations” section.

    Safe Harbor Statement Regarding Forward-Looking Statements
    This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “believes,” “intends,” “seeks,” “anticipates,” “aims,” “plans,” “targets,” “estimates,” “expects,” “assumes,” “continues,” “guidance,” “should,” “could,” “will,” “may” and the negative of these or similar terms and phrases. Specific forward-looking statements in this press release include, but are not limited to, statements regarding the trend of our performance as compared to the previous guidance, the success of our strategic transaction with CMIG International Holding Pte. Ltd., the current insurtech market trends, our ability to generate shareholder value and whether we will continue to have momentum in our business in the future. Actual events, results and outcomes may differ materially from the Company’s expectations due to a variety of known and unknown risks, uncertainties and other factors. Among the risks and uncertainties that could cause actual results to differ from those described in the forward-looking statements are the following: our ability to execute on our strategic transformation, including re-underwriting to reduce volatility and improve underwriting performance, de-risking our investment portfolio, and transforming our business; the impact of unpredictable catastrophic events, including uncertainties with respect to current and future COVID-19 losses across many classes of insurance business and the amount of insurance losses that may ultimately be ceded to the reinsurance market, supply chain issues, labor shortages and related increased costs, changing interest rates and equity market volatility; inadequacy of loss and loss adjustment expense reserves, the lack of available capital, and periods characterized by excess underwriting capacity and unfavorable premium rates; the performance of financial markets, impact of inflation and interest rates, and foreign currency fluctuations; our ability to compete successfully in the insurance and reinsurance market and the effect of consolidation in the insurance and reinsurance industry; technology breaches or failures, including those resulting from a malicious cyber-attack on us, our business partners or service providers; the effects of global climate change, including increased severity and frequency of weather-related natural disasters and catastrophes, including wildfires, and increased coastal flooding in many geographic areas; geopolitical uncertainty, including the ongoing conflicts in Europe and the Middle East and the new presidential administration in the U.S.; our ability to retain key senior management and key employees; a downgrade or withdrawal of our financial ratings; fluctuations in our results of operations; legal restrictions on certain of SiriusPoint’s insurance and reinsurance subsidiaries’ ability to pay dividends and other distributions to SiriusPoint; the outcome of legal and regulatory proceedings and regulatory constraints on our business; reduced returns or losses in SiriusPoint’s investment portfolio; our exposure or potential exposure to corporate income tax in Bermuda and the E.U., U.S. federal income and withholding taxes and our significant deferred tax assets, which could become devalued if we do not generate future taxable income or applicable corporate tax rates are reduced; risks associated with delegating authority to third party managing general agents; future strategic transactions such as acquisitions, dispositions, investments, mergers or joint ventures; SiriusPoint’s response to any acquisition proposal that may be received from any party, including any actions that may be considered by the Company’s Board of Directors or any committee thereof; and other risks and factors listed under “Risk Factors” in the Company’s most recent Annual Report on Form 10-K and other subsequent periodic reports filed with the Securities and Exchange Commission.

    All forward-looking statements speak only as of the date made and the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

    Non-GAAP Financial Measures and Other Financial Metrics

    In presenting SiriusPoint’s results, management has included financial measures that are not calculated under standards or rules that comprise accounting principles generally accepted in the United States (“GAAP”). SiriusPoint’s management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of SiriusPoint’s financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. Core underwriting income, Core net services income, Core income, and Core combined ratio are non-GAAP financial measures. Management believes it is useful to review Core results as it better reflects how management views the business and reflects the Company’s decision to exit the runoff business. Book value per diluted common share excluding accumulated other comprehensive income (loss) (“AOCI”) and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Management believes the effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Underlying net income is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is net income. Underlying net income excludes items which we believe are not indicative of the operations of our underlying businesses. Management believes it is useful to review underlying net income as it better reflects how we view the business, as well as provides investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics. Underlying return on average common shareholders’ equity is calculated by dividing underlying net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity, excluding AOCI. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP figures are included in the attached financial information in accordance with Regulation G and Item 10(e) of Regulation S-K, as applicable.

    About the Company

    SiriusPoint is a global underwriter of insurance and reinsurance providing solutions to clients and brokers around the world. Bermuda-headquartered with offices in New York, London, Stockholm and other locations, we are listed on the New York Stock Exchange (SPNT). We have licenses to write Property & Casualty and Accident & Health insurance and reinsurance globally. Our offering and distribution capabilities are strengthened by a portfolio of strategic partnerships with Managing General Agents and Program Administrators. With approximately $2.6 billion total capital, SiriusPoint’s operating companies have a financial strength rating of A- (Stable) from AM Best, S&P and Fitch, and A3 (Stable) from Moody’s. For more information please visit www.siriuspt.com.

    Contacts

    Investor Relations
    Liam Blackledge – Investor Relations and Strategy Manager
    Liam.Blackledge@siriuspt.com
    + 44 203 772 3082

    Media
    Natalie King – Global Head of Marketing and External Communications
    Natalie.King@siriuspt.com
    + 44 20 3772 3102

           
    SIRIUSPOINT LTD.
    CONSOLIDATED BALANCE SHEETS (UNAUDITED)
    As of December 31, 2024 and December 31, 2023
    (expressed in millions of U.S. dollars, except per share and share amounts)
           
      December 31,
    2024    		   December 31,
    2023
    Assets      
    Debt securities, available for sale, at fair value, net of allowance for credit losses of $1.1 (2023 – $0.0) (cost – $5,143.8; 2023 – $4,754.6) $ 5,131.0     $ 4,755.4  
    Debt securities, trading, at fair value (cost – $187.3; 2023 – $568.1)   162.2       534.9  
    Short-term investments, at fair value (cost – $95.3; 2023 – $370.8)   95.8       371.6  
    Investments in related party investment funds, at fair value   116.5       105.6  
    Other long-term investments, at fair value (cost – $317.8; 2023 – $358.1) (includes related party investments at fair value of $100.7 (2023 – $173.7))   200.0       310.1  
    Total investments   5,705.5       6,077.6  
    Cash and cash equivalents   682.0       969.2  
    Restricted cash and cash equivalents   212.6       132.1  
    Redemption receivable from related party investment fund   —       3.0  
    Due from brokers   11.2       5.6  
    Interest and dividends receivable   44.0       42.3  
    Insurance and reinsurance balances receivable, net   2,054.4       1,966.3  
    Deferred acquisition costs, net   327.5       308.9  
    Unearned premiums ceded   463.9       449.2  
    Loss and loss adjustment expenses recoverable, net   2,315.3       2,295.1  
    Deferred tax asset   297.0       293.6  
    Intangible assets   140.8       152.7  
    Other assets   270.7       175.9  
    Total assets $ 12,524.9     $ 12,871.5  
    Liabilities      
    Loss and loss adjustment expense reserves $ 5,653.9     $ 5,608.1  
    Unearned premium reserves   1,639.2       1,627.3  
    Reinsurance balances payable   1,781.6       1,736.7  
    Deposit liabilities   17.4       134.4  
    Deferred gain on retroactive reinsurance   8.5       27.9  
    Debt   639.1       786.2  
    Due to brokers   18.0       6.2  
    Deferred tax liability   76.2       68.7  
    Liability-classified capital instruments   —       67.3  
    Share repurchase liability   483.0       —  
    Accounts payable, accrued expenses and other liabilities   269.2       278.1  
    Total liabilities   10,586.1       10,340.9  
    Commitments and contingent liabilities      
    Shareholders’ equity      
    Series B preference shares (par value $0.10; authorized and issued: 8,000,000)   200.0       200.0  
    Common shares (issued and outstanding: 116,429,057; 2023 – 168,120,022)   11.6       16.8  
    Additional paid-in capital   945.0       1,693.0  
    Retained earnings   784.9       601.0  
    Accumulated other comprehensive income (loss), net of tax   (4.1 )     3.1  
    Shareholders’ equity attributable to SiriusPoint shareholders   1,937.4       2,513.9  
    Noncontrolling interests   1.4       16.7  
    Total shareholders’ equity   1,938.8       2,530.6  
    Total liabilities, noncontrolling interests and shareholders’ equity $ 12,524.9     $ 12,871.5  
                   
    SIRIUSPOINT LTD.
    CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED)
    For the three and twelve months ended December 31, 2024 and 2023
    (expressed in millions of U.S. dollars, except per share and share amounts)
           
      Three months ended   Twelve months ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenues              
    Net premiums earned $ 590.3     $ 578.0     $ 2,343.5     $ 2,426.2  
    Net investment income   68.9       78.4       303.6       283.7  
    Net realized and unrealized investment losses   (40.7 )     (12.4 )     (88.7 )     (10.0 )
    Net realized and unrealized investment gains (losses) from related party investment funds   0.8       (1.0 )     9.7       (1.0 )
    Net investment income and net realized and unrealized investment gains (losses)   29.0       65.0       224.6       272.7  
    Other revenues   19.4       17.8       184.2       97.8  
    Loss on settlement and change in fair value of liability-classified capital instruments   (25.9 )     (15.0 )     (148.5 )     (59.4 )
    Total revenues   612.8       645.8       2,603.8       2,737.3  
    Expenses              
    Loss and loss adjustment expenses incurred, net   369.1       365.4       1,368.5       1,381.3  
    Acquisition costs, net   134.6       111.7       516.9       472.7  
    Other underwriting expenses   53.9       64.2       181.7       196.3  
    Net corporate and other expenses   58.1       64.5       232.1       258.2  
    Intangible asset amortization   3.0       2.9       11.9       11.1  
    Interest expense   19.6       19.8       69.6       64.1  
    Foreign exchange (gains) losses   (12.9 )     19.2       (10.0 )     34.9  
    Total expenses   625.4       647.7       2,370.7       2,418.6  
    Income (loss) before income tax (expense) benefit   (12.6 )     (1.9 )     233.1       318.7  
    Income tax (expense) benefit   (4.4 )     101.6       (30.7 )     45.0  
    Net income (loss)   (17.0 )     99.7       202.4       363.7  
    Net income attributable to noncontrolling interests   (0.3 )     (2.2 )     (2.5 )     (8.9 )
    Net income (loss) available to SiriusPoint   (17.3 )     97.5       199.9       354.8  
    Dividends on Series B preference shares   (4.0 )     (4.0 )     (16.0 )     (16.0 )
    Net income (loss) available to SiriusPoint common shareholders $ (21.3 )   $ 93.5     $ 183.9     $ 338.8  
    Earnings (loss) per share available to SiriusPoint common shareholders              
    Basic earnings (loss) per share available to SiriusPoint common shareholders $ (0.13 )   $ 0.52     $ 1.06     $ 1.93  
    Diluted earnings (loss) per share available to SiriusPoint common shareholders $ (0.13 )   $ 0.50     $ 1.04     $ 1.85  
    Weighted average number of common shares used in the determination of earnings (loss) per share              
    Basic   161,378,360       166,640,624       166,537,394       163,341,448  
    Diluted   161,378,360       173,609,940       169,470,681       169,607,348  
                                   
    SIRIUSPOINT LTD.
    SEGMENT REPORTING
       
      Three months ended December 31, 2024
      Reinsurance   Insurance &
    Services    		   Core   Eliminations
     (2)    		   Corporate   Segment
    Measure
    Reclass    		   Total
    Gross premiums written $ 312.2     $ 450.3     $ 762.5     $ —     $ (3.0 )   $ —     $ 759.5  
    Net premiums written   237.5       322.7       560.2       —       4.8       —       565.0  
    Net premiums earned   265.9       315.7       581.6       —       8.7       —       590.3  
    Loss and loss adjustment expenses incurred, net   148.3       175.3       323.6       (1.4 )     46.9       —       369.1  
    Acquisition costs, net   73.1       77.8       150.9       (27.6 )     11.3       —       134.6  
    Other underwriting expenses   26.2       24.6       50.8       —       3.1       —       53.9  
    Underwriting income (loss)   18.3       38.0       56.3       29.0       (52.6 )     —       32.7  
    Services revenues   —       51.6       51.6       (31.4 )     —       (20.2 )     —  
    Services expenses   —       41.2       41.2       —       —       (41.2 )     —  
    Net services income   —       10.4       10.4       (31.4 )     —       21.0       —  
    Segment income (loss)   18.3       48.4       66.7       (2.4 )     (52.6 )     21.0       32.7  
    Net investment income                   68.9       —       68.9  
    Net realized and unrealized investment losses     (40.7 )     —       (40.7 )
    Net realized and unrealized investment gains from related party investment funds     0.8       —       0.8  
    Other revenues                   (0.8 )     20.2       19.4  
    Loss on settlement and change in fair value of liability-classified capital instruments     (25.9 )     —       (25.9 )
    Net corporate and other expenses                   (16.9 )     (41.2 )     (58.1 )
    Intangible asset amortization                   (3.0 )     —       (3.0 )
    Interest expense                   (19.6 )     —       (19.6 )
    Foreign exchange gains                   12.9       —       12.9  
    Income (loss) before income tax expense $ 18.3     $ 48.4       66.7       (2.4 )     (76.9 )     —       (12.6 )
    Income tax expense           —       —       (4.4 )     —       (4.4 )
    Net income (loss)           66.7       (2.4 )     (81.3 )     —       (17.0 )
    Net income attributable to noncontrolling interest     —       —       (0.3 )     —       (0.3 )
    Net income (loss) available to SiriusPoint   $ 66.7     $ (2.4 )   $ (81.6 )   $ —     $ (17.3 )
                               
    Attritional losses $ 154.9     $ 188.2     $ 343.1     $ (1.4 )   $ 26.1     $ —     $ 367.8  
    Catastrophe losses   35.2       3.4       38.6       —       —       —       38.6  
    Prior year loss reserve development   (41.8 )     (16.3 )     (58.1 )     —       20.8       —       (37.3 )
    Loss and loss adjustment expenses incurred, net $ 148.3     $ 175.3     $ 323.6     $ (1.4 )   $ 46.9     $ —     $ 369.1  
                               
    Underwriting Ratios: (1)                          
    Attritional loss ratio   58.3 %     59.6 %     59.0 %                 62.3 %
    Catastrophe loss ratio   13.2 %     1.1 %     6.6 %                 6.5 %
    Prior year loss development ratio (15.7 )%   (5.2 )%   (10.0 )%               (6.3 )%
    Loss ratio   55.8 %     55.5 %     55.6 %                 62.5 %
    Acquisition cost ratio   27.5 %     24.6 %     25.9 %                 22.8 %
    Other underwriting expenses ratio   9.9 %     7.8 %     8.7 %                 9.1 %
    Combined ratio   93.2 %     87.9 %     90.2 %                 94.4 %
    (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
    (2) Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
       
      Three months ended December 31, 2023
      Reinsurance   Insurance &
    Services    		   Core   Eliminations
     (2)    		   Corporate   Segment
    Measure
    Reclass    		   Total
    Gross premiums written $ 251.7     $ 468.1     $ 719.8     $ —     $ (4.2 )   $ —     $ 715.6  
    Net premiums written   194.9       263.3       458.2       —       (3.6 )     —       454.6  
    Net premiums earned   243.2       315.2       558.4       —       19.6       —       578.0  
    Loss and loss adjustment expenses incurred, net   121.8       206.6       328.4       (1.4 )     38.4       —       365.4  
    Acquisition costs, net   65.5       66.8       132.3       (31.6 )     11.0       —       111.7  
    Other underwriting expenses   28.1       32.6       60.7       —       3.5       —       64.2  
    Underwriting income (loss)   27.8       9.2       37.0       33.0       (33.3 )     —       36.7  
    Services revenues   1.7       54.0       55.7       (40.0 )     —       (15.7 )     —  
    Services expenses   —       43.6       43.6       —       —       (43.6 )     —  
    Net services fee income   1.7       10.4       12.1       (40.0 )     —       27.9       —  
    Services noncontrolling income   —       (2.8 )     (2.8 )     —       —       2.8       —  
    Net services income   1.7       7.6       9.3       (40.0 )     —       30.7       —  
    Segment income (loss)   29.5       16.8       46.3       (7.0 )     (33.3 )     30.7       36.7  
    Net investment income                   78.4       —       78.4  
    Net realized and unrealized investment losses     (12.4 )     —       (12.4 )
    Net realized and unrealized investment losses from related party investment funds     (1.0 )     —       (1.0 )
    Other revenues                   2.1       15.7       17.8  
    Loss on settlement and change in fair value of liability-classified capital instruments     (15.0 )     —       (15.0 )
    Net corporate and other expenses                   (20.9 )     (43.6 )     (64.5 )
    Intangible asset amortization                   (2.9 )     —       (2.9 )
    Interest expense                   (19.8 )     —       (19.8 )
    Foreign exchange losses                   (19.2 )     —       (19.2 )
    Income (loss) before income tax benefit $ 29.5     $ 16.8       46.3       (7.0 )     (44.0 )     2.8       (1.9 )
    Income tax benefit           —       —       101.6       —       101.6  
    Net income           46.3       (7.0 )     57.6       2.8       99.7  
    Net (income) loss attributable to noncontrolling interest     —       —       0.6       (2.8 )     (2.2 )
    Net income available to SiriusPoint   $ 46.3     $ (7.0 )   $ 58.2     $ —     $ 97.5  
                               
    Attritional losses $ 143.5     $ 222.8     $ 366.3     $ (1.4 )   $ 11.7     $ —     $ 376.6  
    Catastrophe losses   (0.6 )     0.4       (0.2 )     —       0.1       —       (0.1 )
    Prior year loss reserve development   (21.1 )     (16.6 )     (37.7 )     —       26.6       —       (11.1 )
    Loss and loss adjustment expenses incurred, net $ 121.8     $ 206.6     $ 328.4     $ (1.4 )   $ 38.4     $ —     $ 365.4  
                               
    Underwriting Ratios: (1)                          
    Attritional loss ratio   59.0 %     70.7 %     65.6 %                 65.2 %
    Catastrophe loss ratio (0.2 )%     0.1 %     — %                 — %
    Prior year loss development ratio (8.7 )%   (5.3 )%   (6.8 )%               (1.9 )%
    Loss ratio   50.1 %     65.5 %     58.8 %                 63.2 %
    Acquisition cost ratio   26.9 %     21.2 %     23.7 %                 19.3 %
    Other underwriting expenses ratio   11.6 %     10.3 %     10.9 %                 11.1 %
    Combined ratio   88.6 %     97.0 %     93.4 %                 93.6 %
    (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
    (2) Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
       
      Twelve months ended December 31, 2024
      Reinsurance   Insurance &
    Services    		   Core   Eliminations
    (2)    		   Corporate   Segment
    Measure
    Reclass    		   Total
    Gross premiums written $ 1,335.6     $ 1,840.8     $ 3,176.4     $ —     $ 68.2     $ —     $ 3,244.6  
    Net premiums written   1,104.7       1,236.2       2,340.9       —       11.2       —       2,352.1  
    Net premiums earned   1,045.1       1,154.0       2,199.1       —       144.4       —       2,343.5  
    Loss and loss adjustment expenses incurred, net   554.3       714.1       1,268.4       (5.5 )     105.6       —       1,368.5  
    Acquisition costs, net   279.9       284.7       564.6       (121.4 )     73.7       —       516.9  
    Other underwriting expenses   86.1       80.0       166.1       —       15.6       —       181.7  
    Underwriting income (loss)   124.8       75.2       200.0       126.9       (50.5 )     —       276.4  
    Services revenues   —       222.9       222.9       (132.8 )     —       (90.1 )     —  
    Services expenses   —       176.2       176.2       —       —       (176.2 )     —  
    Net services fee income   —       46.7       46.7       (132.8 )     —       86.1       —  
    Services noncontrolling income   —       (2.1 )     (2.1 )     —       —       2.1       —  
    Net services income   —       44.6       44.6       (132.8 )     —       88.2       —  
    Segment income (loss)   124.8       119.8       244.6       (5.9 )     (50.5 )     88.2       276.4  
    Net investment income                   303.6       —       303.6  
    Net realized and unrealized investment losses     (88.7 )     —       (88.7 )
    Net realized and unrealized investment gains from related party investment funds     9.7       —       9.7  
    Other revenues                   94.1       90.1       184.2  
    Loss on settlement and change in fair value of liability-classified capital instruments     (148.5 )     —       (148.5 )
    Net corporate and other expenses                   (55.9 )     (176.2 )     (232.1 )
    Intangible asset amortization                   (11.9 )     —       (11.9 )
    Interest expense                   (69.6 )     —       (69.6 )
    Foreign exchange gains                   10.0       —       10.0  
    Income (loss) before income tax expense $ 124.8     $ 119.8       244.6       (5.9 )     (7.7 )     2.1       233.1  
    Income tax expense           —       —       (30.7 )     —       (30.7 )
    Net income (loss)           244.6       (5.9 )     (38.4 )     2.1       202.4  
    Net income attributable to noncontrolling interest     —       —       (0.4 )     (2.1 )     (2.5 )
    Net income (loss) available to SiriusPoint   $ 244.6     $ (5.9 )   $ (38.8 )   $ —     $ 199.9  
                               
    Attritional losses $ 579.8     $ 734.5     $ 1,314.3     $ (5.5 )   $ 112.8     $ —     $ 1,421.6  
    Catastrophe losses   49.5       5.3       54.8       —       —       —       54.8  
    Prior year loss reserve development   (75.0 )     (25.7 )     (100.7 )     —       (7.2 )     —       (107.9 )
    Loss and loss adjustment expenses incurred, net $ 554.3     $ 714.1     $ 1,268.4     $ (5.5 )   $ 105.6     $ —     $ 1,368.5  
                               
    Underwriting Ratios: (1)                          
    Attritional loss ratio   55.5 %     63.6 %     59.8 %                 60.7 %
    Catastrophe loss ratio   4.7 %     0.5 %     2.5 %                 2.3 %
    Prior year loss development ratio (7.2 )%   (2.2 )%   (4.6 )%               (4.6 )%
    Loss ratio   53.0 %     61.9 %     57.7 %                 58.4 %
    Acquisition cost ratio   26.8 %     24.7 %     25.7 %                 22.1 %
    Other underwriting expenses ratio   8.2 %     6.9 %     7.6 %                 7.8 %
    Combined ratio   88.0 %     93.5 %     91.0 %                 88.3 %
    (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
    (2) Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
       
      Twelve months ended December 31, 2023
      Reinsurance   Insurance &
    Services    		   Core   Eliminations
    (2)    		   Corporate   Segment
    Measure
    Reclass    		   Total
    Gross premiums written $ 1,271.0     $ 2,039.7     $ 3,310.7     $ —     $ 116.7     $ —     $ 3,427.4  
    Net premiums written   1,061.0       1,282.7       2,343.7       —       94.2       —       2,437.9  
    Net premiums earned   1,031.4       1,249.2       2,280.6       —       145.6       —       2,426.2  
    Loss and loss adjustment expenses incurred, net   490.3       815.4       1,305.7       (5.4 )     81.0       —       1,381.3  
    Acquisition costs, net   252.2       295.5       547.7       (137.2 )     62.2       —       472.7  
    Other underwriting expenses   82.7       94.3       177.0       —       19.3       —       196.3  
    Underwriting income (loss)   206.2       44.0       250.2       142.6       (16.9 )     —       375.9  
    Services revenues   (1.1 )     238.6       237.5       (149.6 )     —       (87.9 )     —  
    Services expenses   —       187.8       187.8       —       —       (187.8 )     —  
    Net services fee income (loss)   (1.1 )     50.8       49.7       (149.6 )     —       99.9       —  
    Services noncontrolling income   —       (8.5 )     (8.5 )     —       —       8.5       —  
    Net services income (loss)   (1.1 )     42.3       41.2       (149.6 )     —       108.4       —  
    Segment income (loss)   205.1       86.3       291.4       (7.0 )     (16.9 )     108.4       375.9  
    Net investment income                   283.7       —       283.7  
    Net realized and unrealized investment losses     (10.0 )     —       (10.0 )
    Net realized and unrealized investment losses from related party investment funds     (1.0 )     —       (1.0 )
    Other revenues                   9.9       87.9       97.8  
    Loss on settlement and change in fair value of liability-classified capital instruments     (59.4 )     —       (59.4 )
    Net corporate and other expenses                   (70.4 )     (187.8 )     (258.2 )
    Intangible asset amortization                   (11.1 )     —       (11.1 )
    Interest expense                   (64.1 )     —       (64.1 )
    Foreign exchange losses                   (34.9 )     —       (34.9 )
    Income before income tax benefit $ 205.1     $ 86.3       291.4       (7.0 )     25.8       8.5       318.7  
    Income tax benefit           —       —       45.0       —       45.0  
    Net income           291.4       (7.0 )     70.8       8.5       363.7  
    Net income attributable to noncontrolling interest     —       —       (0.4 )     (8.5 )     (8.9 )
    Net income available to SiriusPoint   $ 291.4     $ (7.0 )   $ 70.4     $ —     $ 354.8  
                               
    Attritional losses $ 618.9     $ 840.7     $ 1,459.6     $ (5.4 )   $ 76.5     $ —     $ 1,530.7  
    Catastrophe losses   12.2       1.3       13.5       —       11.3       —       24.8  
    Prior year loss reserve development   (140.8 )     (26.6 )     (167.4 )     —       (6.8 )     —       (174.2 )
    Loss and loss adjustment expenses incurred, net $ 490.3     $ 815.4     $ 1,305.7     $ (5.4 )   $ 81.0     $ —     $ 1,381.3  
                               
    Underwriting Ratios: (1)                          
    Attritional loss ratio   60.0 %     67.3 %     64.0 %                 63.1 %
    Catastrophe loss ratio   1.2 %     0.1 %     0.6 %                 1.0 %
    Prior year loss development ratio (13.7 )%   (2.1 )%   (7.3 )%               (7.2 )%
    Loss ratio   47.5 %     65.3 %     57.3 %                 56.9 %
    Acquisition cost ratio   24.5 %     23.7 %     24.0 %                 19.5 %
    Other underwriting expenses ratio   8.0 %     7.5 %     7.8 %                 8.1 %
    Combined ratio   80.0 %     96.5 %     89.1 %                 84.5 %
    (1) Underwriting ratios are calculated by dividing the related expense by net premiums earned.
    (2) Insurance & Services MGAs recognize fees for service using revenue from contracts with customers accounting standards, whereas insurance companies recognize acquisition expenses using insurance contract accounting standards. While ultimate revenues and expenses recognized will match, there will be recognition timing differences based on the different accounting standards.
       

    SIRIUSPOINT LTD.
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS & OTHER FINANCIAL MEASURES

    Non-GAAP Financial Measures

    Core Results

    Collectively, the sum of the Company’s two segments, Reinsurance and Insurance & Services, constitute “Core” results. Core underwriting income, Core net services income, Core income and Core combined ratio are non-GAAP financial measures. We believe it is useful to review Core results as it better reflects how management views the business and reflects our decision to exit the runoff business. The sum of Core results and Corporate results are equal to the consolidated results of operations.

    Core underwriting income – calculated by subtracting loss and loss adjustment expenses incurred, net, acquisition costs, net, and other underwriting expenses from net premiums earned.

    Core net services income – consists of services revenues which include commissions, brokerage and fee income related to consolidated MGAs, and other revenues, and services expenses which include direct expenses related to consolidated MGAs, services noncontrolling income which represent minority ownership interests in consolidated MGAs. Net services income is a key indicator of the profitability of the Company’s services provided.

    Core income – consists of two components, core underwriting income and core net services income. Core income is a key measure of our segment performance.

    Core combined ratio – calculated by dividing the sum of Core loss and loss adjustment expenses incurred, net, acquisition costs, net and other underwriting expenses by Core net premiums earned. Accident year loss ratio and accident year combined ratio are calculated by excluding prior year loss reserve development to present the impact of current accident year net loss and loss adjustment expenses on the Core loss ratio and Core combined ratio, respectively. Attritional loss ratio excludes catastrophe losses from the accident year loss ratio as they are not predictable as to timing and amount. These ratios are useful indicators of our underwriting profitability.

    Book Value Per Diluted Common Share Metrics

    Book value per diluted common share excluding AOCI and tangible book value per diluted common share, as presented, are non-GAAP financial measures and the most directly comparable U.S. GAAP measure is book value per common share. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates. Tangible book value per diluted common share excludes intangible assets. Management believes that effects of intangible assets are not indicative of underlying underwriting results or trends and make book value comparisons to less acquisitive peer companies less meaningful. Tangible book value per diluted common share is useful because it provides a more accurate measure of the realizable value of shareholder returns, excluding intangible assets.

    The following table sets forth the computation of book value per common share, book value per diluted common share and tangible book value per diluted common share as of December 31, 2024 and December 31, 2023:

           
      December 31,
    2024    		   December 31,
    2023
      ($ in millions, except share and per share amounts)
    Common shareholders’ equity attributable to SiriusPoint common shareholders $ 1,737.4     $ 2,313.9  
           
    Accumulated other comprehensive income (loss), net of tax   (4.1 )     3.1  
    Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI   1,741.5       2,310.8  
           
    Intangible assets   140.8       152.7  
    Tangible common shareholders’ equity attributable to SiriusPoint common shareholders $ 1,596.6     $ 2,161.2  
           
    Common shares outstanding   116,429,057       168,120,022  
    Effect of dilutive stock options, restricted share units and warrants   2,559,359       5,193,920  
    Book value per diluted common share denominator   118,988,416       173,313,942  
           
    Book value per common share $ 14.92     $ 13.76  
    Book value per diluted common share $ 14.60     $ 13.35  
    Book value per diluted common share ex. AOCI $ 14.64     $ 13.33  
    Tangible book value per diluted common share $ 13.42     $ 12.47  
                   

    Underlying Net Income

    Underlying net income is a non-GAAP financial measure and the most directly comparable U.S. GAAP measure is net income. Underlying net income excludes items which we believe are not indicative of the operations of our underlying businesses, including realized and unrealized gains (losses) on strategic and other investments and liability-classified capital instruments, income (expense) related to loss portfolio transfers, deferred tax assets attributable to the enactment of the Bermuda corporate income tax, development on COVID-19 reserves resulting from the COVID-19 reserve study performed concurrently with the settlement of the Series A Preference shares in the third quarter of 2024, and foreign exchange gains (losses). We believe it is useful to review underlying net income as it better reflects how we view the business, as well as provides investors with an alternative metric that can assist in predicting future earnings and profitability that are complementary to GAAP metrics. Underlying return on average common shareholders’ equity is calculated by dividing underlying net income available to SiriusPoint common shareholders for the period by the average common shareholders’ equity, excluding AOCI. Management believes it is useful to exclude AOCI because it may fluctuate significantly between periods based on movements in interest and currency rates.

    The following table sets forth the computation of underlying net income for the three and twelve months ended December 31, 2024 and 2023:

           
      Three months ended   Twelve months ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Net income (loss) available to SiriusPoint common shareholders $ (21.3 )   $ 93.5     $ 183.9     $ 338.8  
    Non-recurring adjustments:              
    Gains on sale or deconsolidation of consolidated MGAs   —       —       (96.0 )     —  
    Losses on strategic and other investments   34.3       15.4       90.5       40.2  
    MGA & Strategic Investment Rationalization   34.3       15.4       (5.5 )     40.2  
                   
    Losses on settlement and change in fair value of liability-classified capital instruments (“CMIG Merger Instruments”)   25.9       15.0       148.5       59.4  
    COVID-19 favorable reserve development (1)   —       —       (19.9 )     —  
    CMIG Instruments & Transactions   25.9       15.0       128.6       59.4  
                   
    (Income) expense related to loss portfolio transfers   28.9       2.1       44.6       (101.6 )
    Bermuda corporate income tax enactment   —       (100.8 )     —       (100.8 )
    Foreign exchange (gains) losses   (12.9 )     19.2       (10.0 )     34.9  
    Income tax expense on adjustments (2)   (11.4 )     (7.8 )     (38.1 )     (4.9 )
                   
    Underlying net income available to SiriusPoint common shareholders $ 43.5     $ 36.6     $ 303.5     $ 266.0  
                                   
    Return on average common shareholders’ equity attributable to SiriusPoint common shareholders   (4.0 )%     17.1 %     9.1 %     16.2 %
                   
    Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period $ 2,494.9     $ 2,050.0     $ 2,313.9     $ 1,874.7  
    Accumulated other comprehensive income (loss), net of tax   81.5       (135.4 )     3.1       (45.0 )
    Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI – beginning of period   2,413.4       2,185.4       2,310.8       1,919.7  
                   
    Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period   1,737.4       2,313.9       1,737.4       2,313.9  
    Impact of adjustments from above   64.8       (56.9 )     119.6       (72.8 )
    Accumulated other comprehensive income (loss), net of tax   (4.1 )     3.1       (4.1 )     3.1  
    Common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI – end of period   1,806.3       2,253.9       1,861.1       2,238.0  
                   
    Average common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI $ 2,109.9     $ 2,219.7     $ 2,086.0     $ 2,078.9  
                   
    Underlying return on average common shareholders’ equity attributable to SiriusPoint common shareholders ex. AOCI   8.2 %     6.6 %     14.5 %     12.8 %
    (1) This development, which is primarily related to business written by legacy Third Point Reinsurance Ltd., is the result of the COVID-19 reserve study performed concurrently with the settlement of the Series A Preference shares in the third quarter of 2024.
    (2) An effective tax rate of 15% is applied to the adjustments to calculate the income tax expense, where applicable.
       

    Other Financial Measures

    Annualized Return on Average Common Shareholders’ Equity Attributable to SiriusPoint Common Shareholders

    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders is calculated by dividing annualized net income (loss) available to SiriusPoint common shareholders for the period by the average common shareholders’ equity determined using the common shareholders’ equity balances at the beginning and end of the period.

    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders for the three and twelve months ended December 31, 2024 and 2023 was calculated as follows:

           
      Three months ended   Twelve months ended
      December 31,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
      ($ in millions)
    Net income (loss) available to SiriusPoint common shareholders $ (21.3 )   $ 93.5     $ 183.9     $ 338.8  
    Common shareholders’ equity attributable to SiriusPoint common shareholders – beginning of period   2,494.9       2,050.0       2,313.9       1,874.7  
    Common shareholders’ equity attributable to SiriusPoint common shareholders – end of period   1,737.4       2,313.9       1,737.4       2,313.9  
    Average common shareholders’ equity attributable to SiriusPoint common shareholders $ 2,116.2     $ 2,182.0     $ 2,025.7     $ 2,094.3  
    Annualized return on average common shareholders’ equity attributable to SiriusPoint common shareholders (4.0 )%     17.1 %     9.1 %     16.2 %
                               

    The MIL Network –

  • MIL-OSI: COMSTOCK RESOURCES, INC. REPORTS FOURTH QUARTER 2024 FINANCIAL AND OPERATING RESULTS

    Source: GlobeNewswire (MIL-OSI)

    FRISCO, TX, Feb. 18, 2025 (GLOBE NEWSWIRE) — Comstock Resources, Inc. (“Comstock” or the “Company”) (NYSE: CRK) today reported financial and operating results for the quarter and year ended December 31, 2024.

    Highlights of 2024‘s Fourth Quarter

    • Natural gas and oil sales, including realized hedging gains, were $336 million.
    • Operating cash flow was $223 million or $0.76 per share.
    • Adjusted EBITDAX for the quarter was $252 million.
    • Adjusted net income was $46.3 million or $0.16 per share for the quarter.
    • Six successful wells were turned to sales in the Western Haynesville with an average daily initial production rate of 40 MMcf per well.
    • Added over 64,000 net acres in the Western Haynesville, increasing total acreage in the play to 518,000 net acres.

    Financial Results for the Three Months Ended December 31, 2024

    Comstock produced 124.2 Bcfe in the fourth quarter as compared to 140.6 Bcfe in the fourth quarter of 2023. The lower production in the quarter was related to the decision to drop two operated rigs in early 2024 and to defer completion activity in the third quarter of 2024. Comstock’s realized natural gas price for the fourth quarter of 2024 averaged $2.32 per Mcf before hedging and $2.70 per Mcf after hedging. Natural gas and oil sales in the fourth quarter of 2024 totaled $336.1 million (including realized hedging gains of $47.8 million). Operating cash flow (excluding changes in working capital) generated in the fourth quarter of 2024 was $222.8 million, and the net loss for the fourth quarter was $55.3 million or $0.19 per share. Net loss in the quarter included a pre-tax $126.9 million unrealized loss on hedging contracts held for natural gas price risk management. Excluding this item, adjusted net income for the fourth quarter of 2024 was $46.3 million, or $0.16 per share.

    Comstock’s production cost per Mcfe in the fourth quarter averaged $0.72 per Mcfe, which was comprised of $0.36 for gathering and transportation costs, $0.25 for lease operating costs, $0.06 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock’s unhedged operating margin was 69% in the fourth quarter of 2024 and 73% after hedging.

    Financial Results for the Year Ended December 31, 2024

    Production in 2024 was 527.8 Bcfe as compared to 524.9 Bcfe in 2023. Natural gas and oil sales for the year ended December 31, 2024 totaled $1.3 billion (including realized hedging gains of $207.8 million). Operating cash flow (excluding changes in working capital) generated during the year was $675.2 million, and the net loss was $218.8 million or $0.76 per share. The adjusted net loss excluding a pre-tax $197.6 million unrealized loss on hedging contracts for the year ended December 31, 2024 was $69.0 million or $0.24 per share.

    Comstock’s production cost per Mcfe during the year ended December 31, 2024 averaged $0.78 per Mcfe, which was comprised of $0.37 for gathering and transportation costs, $0.25 for lease operating costs, $0.11 for production and other taxes and $0.05 for cash general and administrative expenses. Comstock’s unhedged operating margin was 61% during 2024 and 68% after hedging.

    2024 Drilling Results

    Comstock drilled 50 (42.9 net) operated horizontal Haynesville/Bossier shale wells in 2024, which had an average lateral length of 10,759 feet. Comstock also turned 48 (42.9 net) operated wells to sales in 2024, which had an average initial production rate of 26 MMcf per day.

    Since its last operational update in October, Comstock turned an additional six (6.0 net) operated Western Haynesville/Bossier shale wells to sales as follows:

    Well   Vertical Depth (feet)   Completed Lateral (feet)   Initial Production Rate (MMcf per day)
                 
    Hodges #1   16,705   11,405   39
    Powell #1   18,081   9,758   42
    Hogue #1   18,872   12,055   44
    Deornellas A #1   18,975   10,884   42
    Deornellas B #2   17,552   9,473   40
    Miles #1   15,921   10,584   34

    These wells had average initial daily production rates of 40 MMcf per day and average completed lateral lengths of 10,693 feet.

    2024 Proved Oil and Gas Reserves

    Comstock also announced that proved natural gas and oil reserves as of December 31, 2024 were estimated at 3.8 trillion cubic feet equivalent (“Tcfe”) as compared to 4.9 Tcfe as of December 31, 2023. The reserve estimates were determined under SEC guidelines and were audited by the Company’s independent reserve engineering firm. The 3.8 Tcfe of proved reserves at December 31, 2024 were substantially all natural gas, 73% developed and 98% operated by Comstock. The present value, using a 10% discount rate, of the future net cash flows before income taxes of the proved reserves (the “PV-10 Value”), was approximately $1.6 billion using the Company’s average first of month 2024 prices of $1.84 per Mcf of natural gas and $71.07 per barrel of oil. The natural gas and oil prices used in determining the December 31, 2024 proved reserve estimates were 23% lower for natural gas and 2% lower for oil as compared to prices used at December 31, 2023.

    The very low natural gas prices used to determine proved reserves resulted in many of the Company’s proved undeveloped locations being excluded from the year-end proved reserve estimates as they did not generate an adequate return at that natural gas price. Using NYMEX future market prices as of December 31, 2024 of $3.26 per Mcf for natural gas and $59.10 per barrel of oil, as adjusted for the Company’s basis differentials, proved reserves would have been 7.0 Tcfe with a PV-10 value of $5.7 billion.

    The following table reflects the changes in the SEC and NYMEX proved reserve estimates since the end of 2023:

      SEC     NYMEX  
      (Bcfe)  
    Proved Reserves:          
    Proved Reserves at December 31, 2023   4,943.5       6,654.4  
    Production   (527.8 )     (528.0 )
    Extensions and discoveries   531.3       899.4  
    Divestitures   (2.4 )     (3.0 )
    Revisions   (1,180.5 )     (0.3 )
    Proved Reserves at December 31, 2024   3,764.1       7,022.5  

    Comstock replaced 101% of its 2024 production excluding revisions under SEC pricing and replaced 170% of its 2024 production under NYMEX pricing.

    2025 Budget

    In response to improved natural gas prices, the Company plans to increase the number of operating drilling rigs it is running from five to seven during 2025. Four of the rigs will be devoted to the Western Haynesville to continue to delineate the new play. As a result, Comstock plans to spend approximately $1.0 billion to $1.1 billion in 2025 on its development and exploration projects to drill 46 (40.3 net) operated horizontal wells and to turn 46 (39.7 net) operated wells to sales in 2025. Comstock expects to spend $130 million to $150 million on its Western Haynesville midstream system, which will be funded by its midstream partnership.

    Earnings Call Information

    Comstock has planned a conference call for 10:00 a.m. Central Time on February 19, 2025, to discuss the fourth quarter 2024 operational and financial results. Investors wishing to listen should visit the Company’s website at www.comstockresources.com for a live webcast. Investors wishing to participate in the conference call telephonically will need to register at:
    https://register.vevent.com/register/BI6e0b4d6ba76e49049b0b8093ff4a87a6

    Upon registering to participate in the conference call, participants will receive the dial-in number and a personal PIN number to access the conference call. On the day of the call, please dial in at least 15 minutes in advance to ensure a timely connection to the call. The conference call will also be broadcast live in listen-only mode and can be accessed via the website URL: https://edge.media-server.com/mmc/p/siuhk9j5.

    If you are unable to participate in the original conference call, a web replay will be available for twelve months beginning at 1:00 p.m. CT on February 19, 2025. The replay of the conference can be accessed using the webcast link: https://edge.media-server.com/mmc/p/siuhk9j5.

    This press release may contain “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes the expectations in such statements to be reasonable, there can be no assurance that such expectations will prove to be correct. Information concerning the assumptions, uncertainties and risks that may affect the actual results can be found in the Company’s filings with the Securities and Exchange Commission (“SEC”) available on the Company’s website or the SEC’s website at sec.gov.

    Comstock Resources, Inc. is a leading independent natural gas producer with operations focused on the development of the Haynesville shale in North Louisiana and East Texas. The Company’s stock is traded on the New York Stock Exchange under the symbol CRK.

    COMSTOCK RESOURCES, INC.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share amounts)

        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    Revenues:                        
    Natural gas sales   $ 287,626     $ 348,385     $ 1,043,886     $ 1,259,450  
    Oil sales     672       1,050       3,597       5,161  
    Total natural gas and oil sales     288,298       349,435       1,047,483       1,264,611  
    Gas services     78,208       61,148       206,097       300,498  
    Total revenues     366,506       410,583       1,253,580       1,565,109  
    Operating expenses:                        
    Production and ad valorem taxes     7,707       31,912       57,437       91,803  
    Gathering and transportation     44,434       46,925       194,890       184,906  
    Lease operating     31,379       31,678       130,504       132,203  
    Exploration     —       —       —       1,775  
    Depreciation, depletion and amortization     202,116       185,558       795,397       607,908  
    Gas services     72,611       57,733       205,407       282,050  
    General and administrative     10,164       6,000       39,435       37,992  
    Loss (gain) on sale of assets     35       —       (875 )     (125 )
    Total operating expenses     368,446       359,806       1,422,195       1,338,512  
    Operating income (loss)     (1,940 )     50,777       (168,615 )     226,597  
    Other income (expenses):                        
    Gain (loss) from derivative financial instruments     (79,022 )     111,449       10,196       187,639  
    Other income     284       304       1,211       1,771  
    Interest expense     (54,616 )     (47,936 )     (210,621 )     (169,018 )
    Total other income (expenses)     (133,354 )     63,817       (199,214 )     20,392  
    Income (loss) before income taxes     (135,294 )     114,594       (367,829 )     246,989  
    (Provision for) benefit from income taxes     79,981       (6,217 )     149,075       (35,095 )
    Net income (loss)     (55,313 )     108,377       (218,754 )     211,894  
    Net income attributable to noncontrolling interest     (2,816 )     (777 )     (10,897 )     (777 )
    Net income (loss) attributable to Comstock   $ (58,129 )   $ 107,600     $ (229,651 )   $ 211,117  
                             
    Net income (loss) per share:                        
    Basic   $ (0.19 )   $ 0.39     $ (0.76 )   $ 0.76  
    Diluted   $ (0.19 )   $ 0.39     $ (0.76 )   $ 0.76  
    Weighted average shares outstanding:                        
    Basic     290,170       276,999       287,010       276,806  
    Diluted     290,170       276,999       287,010       276,806  
    Dividends per share   $ —     $ 0.125     $ —     $ 0.500  

    COMSTOCK RESOURCES, INC.
    OPERATING RESULTS
    (In thousands, except per unit amounts)

        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    Natural gas production (MMcf)     124,128       140,565       527,548       524,467  
    Oil production (Mbbls)     10       13       50       70  
    Total production (MMcfe)     124,185       140,649       527,847       524,890  
                             
    Natural gas sales   $ 287,626     $ 348,385     $ 1,043,886     $ 1,259,450  
    Natural gas hedging settlements (1)     47,847       4,107       207,803       80,328  
    Total natural gas including hedging     335,473       352,492       1,251,689       1,339,778  
    Oil sales     672       1,050       3,597       5,161  
    Total natural gas and oil sales including hedging   $ 336,145     $ 353,542     $ 1,255,286     $ 1,344,939  
                             
    Average natural gas price (per Mcf)   $ 2.32     $ 2.48     $ 1.98     $ 2.40  
    Average natural gas price including hedging (per Mcf)   $ 2.70     $ 2.51     $ 2.37     $ 2.55  
    Average oil price (per barrel)   $ 67.20     $ 80.77     $ 71.94     $ 73.73  
    Average price (per Mcfe)   $ 2.32     $ 2.48     $ 1.98     $ 2.41  
    Average price including hedging (per Mcfe)   $ 2.71     $ 2.51     $ 2.38     $ 2.56  
                             
    Production and ad valorem taxes   $ 7,707     $ 31,912     $ 57,437     $ 91,803  
    Gathering and transportation     44,434       46,925       194,890       184,906  
    Lease operating     31,379       31,678       130,504       132,203  
    Cash general and administrative (2)     6,282       3,141       24,174       28,125  
    Total production costs   $ 89,802     $ 113,656     $ 407,005     $ 437,037  
                             
    Production and ad valorem taxes (per Mcfe)   $ 0.06     $ 0.23     $ 0.11     $ 0.18  
    Gathering and transportation (per Mcfe)     0.36       0.33       0.37       0.35  
    Lease operating (per Mcfe)     0.25       0.23       0.25       0.25  
    Cash general and administrative (per Mcfe)     0.05       0.02       0.05       0.05  
    Total production costs (per Mcfe)   $ 0.72     $ 0.81     $ 0.78     $ 0.83  
                             
    Unhedged operating margin     69 %     67 %     61 %     65 %
    Hedged operating margin     73 %     68 %     68 %     68 %
                             
    Gas services revenues   $ 78,208     $ 61,148     $ 206,097     $ 300,498  
    Gas services expenses     72,611       57,733       205,407       282,050  
    Gas services margin   $ 5,597     $ 3,415     $ 690     $ 18,448  
                             
    Natural Gas and Oil Capital Expenditures:                        
    Unproved property acquisitions   $ 18,448     $ 21,907     $ 106,386     $ 98,553  
    Total natural gas and oil properties acquisitions   $ 18,448     $ 21,907     $ 106,386     $ 98,553  
    Exploration and Development:                        
    Development leasehold   $ 1,308     $ 8,818     $ 13,461     $ 27,905  
    Exploratory drilling and completion     134,779       65,079       354,557       244,129  
    Development drilling and completion     96,021       233,856       503,550       974,664  
    Other development costs     8,325       6,262       30,500       25,130  
    Total exploration and development capital expenditures   $ 240,433     $ 314,015     $ 902,068     $ 1,271,828  

    (1)   Included in gain (loss) from derivative financial instruments in operating results.

    (2)   Excludes stock-based compensation.

    COMSTOCK RESOURCES, INC.
    NON-GAAP FINANCIAL MEASURES
    (In thousands, except per share amounts)

        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    ADJUSTED NET INCOME (LOSS):                        
    Net income (loss)   $ (55,313 )   $ 108,377     $ (218,754 )   $ 211,894  
    Unrealized loss (gain) from derivative financial instruments     126,869       (107,342 )     197,607       (107,311 )
    Exploration expense     —       —       —       1,775  
    Loss (gain) on sale of assets     35       —       (875 )     (125 )
    Adjustment to income taxes     (25,333 )     26,868       (46,981 )     26,450  
    Adjusted net income (loss) (1)   $ 46,258     $ 27,903     $ (69,003 )   $ 132,683  
                             
    Adjusted net income (loss) per share (2)   $ 0.16     $ 0.10     $ (0.24 )   $ 0.47  
    Diluted shares outstanding     292,983       276,999       287,010       276,806  
                             
                             
    ADJUSTED EBITDAX:                        
    Net income (loss)   $ (55,313 )   $ 108,377     $ (218,754 )   $ 211,894  
    Interest expense     54,616       47,936       210,621       169,018  
    Income taxes     (79,981 )     6,217       (149,075 )     35,095  
    Depreciation, depletion, and amortization     202,116       185,558       795,397       607,908  
    Exploration     —       —       —       1,775  
    Unrealized loss (gain) from derivative financial instruments     126,869       (107,342 )     197,607       (107,311 )
    Stock-based compensation     3,881       2,861       15,261       9,867  
    Loss (gain) on sale of assets     35       —       (875 )     (125 )
    Total Adjusted EBITDAX (3)   $ 252,223     $ 243,607     $ 850,182     $ 928,121  

    (1)   Adjusted net income (loss) is presented because of its acceptance by investors and by Comstock management as an indicator of the Company’s profitability excluding, non-cash unrealized gains and losses on derivative financial instruments, gains and losses on sales of assets and other unusual items.

    (2)   Adjusted net income (loss) per share is calculated to include the dilutive effects of unvested restricted stock pursuant to the two-class method and performance stock units and preferred stock pursuant to the treasury stock method.

    (3)   Adjusted EBITDAX is presented in the earnings release because management believes that adjusted EBITDAX, which represents Comstock’s results from operations before interest, income taxes, and certain non-cash items, including depreciation, depletion and amortization, unrealized (gain) loss from derivative financial instruments and exploration expense, is a common alternative measure of operating performance used by certain investors and financial analysts.

    COMSTOCK RESOURCES, INC.
    NON-GAAP FINANCIAL MEASURES
    (In thousands)

        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    OPERATING CASH FLOW (1):                        
    Net income (loss)   $ (55,313 )   $ 108,377     $ (218,754 )   $ 211,894  
    Reconciling items:                        
    Unrealized loss (gain) from derivative financial instruments     126,869       (107,342 )     197,607       (107,311 )
    Deferred income taxes     (57,754 )     15,423       (124,919 )     44,301  
    Depreciation, depletion and amortization     202,116       185,558       795,397       607,908  
    Amortization of debt discount and issuance costs     2,957       1,984       11,476       7,964  
    Stock-based compensation     3,881       2,861       15,261       9,867  
    Loss (gain) on sale of assets     35       —       (875 )     (125 )
    Operating cash flow   $ 222,791     $ 206,861     $ 675,193     $ 774,498  
    (Increase) decrease in accounts receivable     (18,989 )     (16,626 )     56,584       278,697  
    (Increase) decrease in other current assets     (22,144 )     1,369       (22,893 )     745  
    Increase (decrease) in accounts payable and other accrued expenses     85,395       36,603       (88,547 )     (37,094 )
    Net cash provided by operating activities   $ 267,053     $ 228,207     $ 620,337     $ 1,016,846  
        Three Months Ended
    December 31,    		     Year Ended
    December 31,    		  
        2024     2023     2024     2023  
    FREE CASH FLOW (2):                        
    Operating cash flow   $ 222,791     $ 206,861     $ 675,193     $ 774,498  
    Less:                        
    Exploration and development capital expenditures     (240,433 )     (314,015 )     (902,068 )     (1,271,828 )
    Midstream capital expenditures     (38,638 )     (14,098 )     (85,377 )     (35,694 )
    Other capital expenditures     (558 )     (11 )     (2,264 )     (491 )
    Contributions from midstream partnership     24,500       24,000       60,500       24,000  
    Free cash deficit from operations   $ (32,338 )   $ (97,263 )   $ (254,016 )   $ (509,515 )
    Acquisitions     (18,448 )     (21,907 )     (106,386 )     (98,553 )
    Proceeds from divestitures     —       —       1,214       41,295  
    Free cash deficit after acquisition and divestiture activity   $ (50,786 )   $ (119,170 )   $ (359,188 )   $ (566,773 )

    (1)   Operating cash flow is presented in the earnings release because management believes it to be useful to investors as a common alternative measure of cash flows which excludes changes to other working capital accounts.

    (2)   Free cash flow from operations and free cash flow after acquisition and divestiture activity are presented in the earnings release because management believes them to be useful indicators of the Company’s ability to internally fund acquisitions and debt maturities after exploration and development capital expenditures, midstream and other capital expenditures, proved and unproved property acquisitions, and proceeds from divestitures of natural gas and oil properties.

    COMSTOCK RESOURCES, INC.
    CONSOLIDATED BALANCE SHEETS
    (In thousands)

        December 31,
    2024    		     December 31,
    2023    		  
    ASSETS            
    Cash and cash equivalents   $ 6,799     $ 16,669  
    Accounts receivable     174,846       231,430  
    Derivative financial instruments     4,865       126,775  
    Other current assets     97,524       86,619  
    Total current assets     284,034       461,493  
    Property and equipment, net     5,688,389       5,384,771  
    Goodwill     335,897       335,897  
    Operating lease right-of-use assets     73,777       71,462  
        $ 6,382,097     $ 6,253,623  
                 
    LIABILITIES AND STOCKHOLDERS’ EQUITY            
    Accounts payable   $ 421,814     $ 523,260  
    Accrued costs     146,173       134,466  
    Operating leases     35,927       23,765  
    Derivative financial instruments     8,940       —  
    Total current liabilities     612,854       681,491  
    Long-term debt     2,952,090       2,640,391  
    Deferred income taxes     345,116       470,035  
    Derivative financial instruments     66,757       —  
    Long-term operating leases     37,740       47,742  
    Asset retirement obligation     33,996       30,773  
    Total liabilities     4,048,553       3,870,432  
    Stockholders’ Equity:            
    Common stock     146,130       139,214  
    Additional paid-in capital     1,366,274       1,260,930  
    Accumulated earnings     728,619       958,270  
    Total stockholders’ equity attributable to Comstock     2,241,023       2,358,414  
    Noncontrolling interest     92,521       24,777  
    Total stockholders’ equity     2,333,544       2,383,191  
        $ 6,382,097     $ 6,253,623  

    The MIL Network –

  • MIL-OSI: CDPQ to sell 2,500,000 common shares of Intact Financial

    Source: GlobeNewswire (MIL-OSI)

    MONTRÉAL, Feb. 18, 2025 (GLOBE NEWSWIRE) — CDPQ today announced its intention to sell 2,500,000 common shares of Intact Financial Corporation (TSX: IFC), representing approximately 1.4% of the issued and outstanding common shares of Intact as of February 18, 2025.

    The common shares are being sold at a gross price of $278.60 per share, which has been underwritten by CIBC Capital Markets and National Bank Financial. CDPQ expects to receive gross cash proceeds of approximately $696,500,000 from the offering.

    This transaction is part of CDPQ’s regular portfolio rebalancing. Once the transaction is complete, CDPQ will own approximately 6.6% of Intact’s issued and outstanding common shares, remaining its largest shareholder and Intact continuing as one of CDPQ’s largest holdings in the public markets.

    “CDPQ has been a major shareholder of Intact for over fifteen years, during which time our investment in the company has generated significant returns for our depositors,” said Vincent Delisle, Executive Vice-President and Head of Liquid Markets at CDPQ. “This transaction allows us to monetize a portion of these returns while retaining significant ownership in the company, based on our confidence in Intact’s growth prospects, including through several strategic operations based and managed in Québec.”

    “CDPQ continues to be a valued partner in Intact’s evolution as a leading global P&C insurer. This transaction enables a significant gain on a portion of one of their largest investments while remaining able to support our growth ambitions,” said Ken Anderson, Executive Vice President and CFO, Intact Financial Corporation. “We have delivered an annualized total shareholder return of 15% over the last 10 years, and we remain well positioned to sustain our track record of outperformance, given the strength of our platforms, our talented team and our clear strategic roadmap.”

    ABOUT CDPQ
    At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at June 30, 2024, CDPQ’s net assets totalled CAD 452 billion. For more information, visit cdpq.com, consult our LinkedIn or Instagram pages, or follow us on X.

    CDPQ is a registered trademark owned by Caisse de dépôt et placement du Québec and licensed for use by its subsidiaries. 

    ABOUT INTACT FINANCIAL CORPORATION
    Intact Financial Corporation (TSX: IFC) is the largest provider of Property and Casualty (P&C) insurance in Canada, a leading Specialty lines insurer with international expertise and a leader in Commercial lines in the UK and Ireland. The business has grown organically and through acquisitions to almost $24 billion of total annual operating direct premiums written (DPW).

    In Canada, Intact distributes insurance under the Intact Insurance brand through agencies and a wide network of brokers, including its wholly owned subsidiary BrokerLink. Intact also distributes directly to consumers through the belairdirect brand and affinity partnerships. Additionally, Intact provides exclusive and tailored offerings to high-net-worth customers through Intact Prestige. In the US, Intact Insurance Specialty Solutions provides a range of Specialty insurance products and services through independent agencies, regional and national brokers, wholesalers and managing general agencies. Across the UK, Ireland, and Europe, Intact provides Personal, Commercial and/or Specialty insurance solutions through the RSA, 123.ie, NIG and FarmWeb brands.

    For more information
    CDPQ Media Relations Team
    + 1 514 847-5493
    medias@cdpq.com

    Caroline Audet
    Manager, Media Relations and Public Affairs, Intact Financial
    416 227-7905 / 514 985-7165
    media@intact.net

    The MIL Network –

  • MIL-OSI Security: East Conemaugh Man Pleads Guilty to Methamphetamine and Firearms Charges

    Source: Office of United States Attorneys

    JOHNSTOWN, Pa. – A resident of East Conemaugh, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, Acting United States Attorney Troy Rivetti announced today.

    Kari Ameen Wheeler, 38, pleaded guilty to Counts One and Two of the Indictment before United States District Judge Stephanie L. Haines.

    In connection with the guilty plea, the Court was advised that, on or about August 21, 2024, in the Western District of Pennsylvania, Wheeler distributed and possessed with intent to distribute 500 grams or more of methamphetamine. Further, on August 23, 2024, Wheeler possessed two firearms and ammunition after previously having been convicted of a felony. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

    Judge Haines scheduled sentencing for June 30, 2025. The law provides for a total sentence of not less than 10 years and up to life in prison, a fine of up to $10 million, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history of the defendant.

    Assistant United States Attorney Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.

    The Federal Bureau of Investigation, FBI Safe Streets Task Force, and Cambria County Drug Task Force conducted the investigation that led to the prosecution of Wheeler.

    MIL Security OSI –

  • MIL-OSI Security: FBI Boston’s Violent Crimes Task Force Seeks Identity of Suspect Wanted in Connection with Armed Pharmacy Robbery

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

    The FBI Boston Division’s Violent Crimes Task Force, the Massachusetts State Police, and the Danvers Police Department are seeking the public’s assistance in identifying a suspect wanted in connection with the armed robbery of a pharmacy in Danvers, Massachusetts, on January 8, 2025. The robber is considered armed and dangerous.

    On Wednesday, January 8, 2025, at approximately 5:17 p.m., the suspect entered the pharmacy located at 1 Maple Street, Danvers, Massachusetts. He approached the counter, pointed a silver pistol at the pharmacist, and demanded a variety of drugs from the safe. After placing the drugs in a black bag, he exited the store through the rear.

    The alleged robber is a thin, white male. During the robbery he wore a gray hooded sweatshirt with a dark-colored jacket, khaki pants, a black face mask, and a black hat.

    Anyone with information regarding this robbery should call the FBI at 857-386-2000 or the Danvers Police Department at 978-762-0221. Tips can also be submitted online at tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI: Susan Campfield to Retire as Director of Norwood Financial Corp and Wayne Bank

    Source: GlobeNewswire (MIL-OSI)

    HONESDALE, Pa., Feb. 18, 2025 (GLOBE NEWSWIRE) — Susan Campfield has announced her retirement from the Board of Directors of Norwood Financial Corp (Nasdaq Global Market-NWFL) and its subsidiary, Wayne Bank, effective February 18, 2025.

    After serving the companies for 19 years, Campfield announced her retirement stating, “I have enjoyed supporting this great bank and all of the good it has done and is doing in the communities that we serve. It has been one of the real honors of my professional life.”

    Campfield joined the Board of Directors in 2006 as a fixture in the Wayne County, Pennsylvania business community. For over 33 years, she served as President and Chief Executive Officer of Gumble Brothers, Inc., a building material supplier located in Paupack, Pennsylvania. In her role, Campfield worked with numerous contractors and builders, which gave her an extensive knowledge of the local construction market. She brought expertise on the local economy and business opportunities for the bank during her time as Director.

    Norwood Financial Corp is the parent company of Wayne Bank, which operates from thirty offices throughout Northeastern Pennsylvania and Upstate New York, including those offices operating under the Bank of Cooperstown and Bank of the Finger Lakes brands. The Company’s stock trades on the Nasdaq Global Market under the symbol “NWFL”.

    Forward-Looking Statements

    The Private Securities Litigation Reform Act of 1995 contains safe harbor provisions regarding forward-looking statements. When used in this discussion, the words “believes”, “anticipates”, “contemplates”, “expects”, “bode”, “future performance” and similar expressions are intended to identify forward-looking statements. Such statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those projected. Those risks and uncertainties include, among other things, changes in federal and state laws, changes in interest rates, our ability to maintain strong credit quality metrics, our ability to have future performance, our ability to control core operating expenses and costs, demand for real estate, government fiscal and trade policies, cybersecurity and general economic conditions. The Company undertakes no obligation to publicly release the results of any revisions to those forward-looking statements which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

    Contact:   John M. McCaffery
        Executive Vice President &
        Chief Financial Officer
        NORWOOD FINANCIAL CORP
        272-304-3003
        www.waynebank.com

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