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Category: Intelligence Agencies

  • MIL-OSI Security: Washington, D.C. Man Sentenced to 22 Years in Federal Prison for Role in Armed Robberies of Four Maryland Cell Phone Stores

    Source: Office of United States Attorneys

    Baltimore, Maryland – Today, U.S. District Judge Matthew J. Maddox sentenced Xavier Jones, 26, of Washington, D.C., to 22 years in federal prison and three years of supervised release for his role in robbing four cell phone stores in Baltimore County, Howard County, and Prince George’s County, Maryland. Jones was also ordered to pay $74,141.26 in restitution. 

    Phil Selden, Acting U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office, and Chief Robert McCullough, Baltimore County Police Department.

    According to the parties’ plea agreement, Jones and his co-conspirators brandished firearms during the robberies, threatened to kill employees and customers, physically moved victims throughout the stores, and pepper sprayed victims during one of the robberies.

    The final robbery occurred on December 23, 2020, at an AT&T store in Owings Mills, Maryland.  Co-conspirator Rico Dashiell, 26, of Fort Washington, Maryland, entered the AT&T store pretending to be a customer.  After Jones and co-conspirator Donte Herring, 25, of Washington, DC, entered the store, Dashiell brandished a firearm announcing a robbery.  Jones and Herring stole $48,767 worth of Apple and Samsung Galaxy devices, 76 in total.

    Additionally, Dashiell directed an employee to open the store’s cash register before stealing $322.  The perpetrators forced three victims into a room containing a safe and then proceeded to pepper spray them.  The robbers then fled the store in a stolen Kia Niro with registration tags from another vehicle.  During the course of their conduct, the robbers inadvertently took a 3SI GPS tracker which was in one of the stolen cell phone boxes.  As the perpetrators fled, the tracker was activated.  Law enforcement tracked the stolen vehicle to a single-family residence in Catonsville, Maryland where a friend of Jones lived.  Aviation units observed and filmed the robbers outside of the residence unloading the stolen AT&T merchandise and taking the items into the residence.  Law enforcement also found a stolen Dodge Caravan from a previous robbery at the residence.     

    The initial robbery happened on October 23, 2020, at a Verizon store in College Park, Maryland. Jones and a co-conspirator forced victims into a backroom before directing an employee to open a safe. The robbers then proceeded to steal $21,440.93 in mobile devices.

    Then on December 8, 2020, Jones and a co-conspirator robbed the Russell Cellular Verizon store in Columbia, Maryland.  Jones and a co-conspirator initially posed as customers before pulling a firearm on an employee.  The robbers then moved the employee into a backroom, ordering him to open the safe.  Jones and his co-conspirator stole $22,000.33 worth of mobile devices — including numerous iPhones — and $1,273, from the safe.

    On December 17, 2020, Jones and Herring robbed another Russell Cellular Verizon store – this time in Halethorpe, Maryland. The perpetrators again initially posed as customers before brandishing firearms and pointing them at an employee. Herring ordered the employee to open a safe and then they proceeded to steal various electronic devices — including multiple boxes of Apple cellular phones, watches, and iPads — worth approximately $27,940.  Additionally, Herring forced the employee to give him $1,313 from the cash register. They then fled in a stolen Dodge Caravan.    

    Dashiell previously pleaded guilty for his role in the robbery and was sentenced to 12 years in federal prison.  Herring was convicted at trial and has been sentenced to 20 years in federal prison.

    Acting U.S. Attorney Selden commended the FBI, Baltimore County Police Department, Howard County Police Department, and Prince George’s County Police Department for their work in the investigation.  Mr. Selden also thanked Assistant U.S. Attorneys Paul A. Riley and Michael F. Aubin who are prosecuting the case.

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

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  • MIL-OSI Security: Los Angeles Man Sentenced To 41 Months’ Imprisonment For Conspiring To Launder Money

    Source: Office of United States Attorneys

    NEWARK, N.J. – A California man was sentenced today to 41 months in prison for conspiring to launder money obtained from internet-related fraud, Acting U.S. Attorney Vikas Khanna announced.

    Charles Singleton, 65, of Los Angeles, California, previously pleaded guilty before U.S. District Judge Madeline Cox Arleo, to Count One of an Indictment, which charged him with conspiracy to commit money laundering.

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

    From September 2018 to August 2020, Singleton worked with conspirators to launder money obtained through business email compromises, which is a method of wire fraud often targeting businesses or individuals working on business transactions involving high-dollar wire transactions.  The fraud is carried out by compromising, hacking, and/or “spoofing” legitimate email accounts through social engineering or computer intrusion techniques to cause employees of a target company, or other individuals involved in legitimate business transactions, to conduct unauthorized transfers of funds, most often to accounts controlled by the fraud perpetrators.  

    Singleton opened several business bank accounts in the names of companies he controlled and received proceeds of wire fraud in those accounts.  Singleton and his conspirators then withdrew and transferred money from various bank accounts and shared the bank account information.  Singleton also executed at least one fraudulent contract with a conspirator for a wire of $70,000.  

    In addition to the prison term, Judge Arleo sentenced Singleton to three years of supervised release, ordered forfeiture of over $1.1 million constituting proceeds derived from the conspiracy, and ordered $1,469,003 in restitution to the victims.

    Acting U.S. Attorney Khanna credited special agents of the FBI, Woodland Park Office, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation.

    The government is represented by Assistant U.S. Attorney Farhana C. Melo of the Economic Crimes Unit in Newark.
     

    MIL Security OSI –

  • MIL-OSI Security: Federal Jury Finds Dauphin County Man Guilty of Attempted Coercion and Enticement of a Minor

    Source: Office of United States Attorneys

    HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Melad Fahmy, age 44, of Dauphin County, Pennsylvania, was convicted on February 13, 2025, for attempted coercion and enticement of a minor following a four-day jury trial before United States District Court Judge Jennifer P. Wilson.  The jury deliberated approximately 45 minutes before returning its verdict. 

    According to Acting United States Attorney John C. Gurganus, this case was the result of a multi-agency undercover operation designed to combat human trafficking and child exploitation.  Fahmy responded to an advertisement FBI had placed on a website known to advertise prostitution and escort service.  Fahmy then communicated with an undercover agent posing as an aunt and acting as the pimp for her minor niece to entice the child to engage in illegal sexual acts for $100.  Fahmy was arrested after arriving at a Harrisburg hotel with $100 in cash.

    “Cases like this are brought together through the diligent work of law enforcement and their dedication to protecting all children from exploitation,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI will continue to work with our local, state, and federal law enforcement partners to locate, apprehend, and bring to justice those who prey on our most vulnerable.”

    The case was investigated by the Federal Bureau of Investigation, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Dauphin County Drug Task Force, and Lower Paxton Township Police Department. Assistant U.S. Attorneys Christian Haugsby and Stephen Dukes prosecuted the case.  

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

    The maximum penalty under federal law for this offense is a life of imprisonment, with a mandatory minimum of 10 years, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

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    MIL Security OSI –

  • MIL-OSI Security: Brian Dugan Named Assistant Director of the Training Division

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

    The Federal Bureau of Investigation has named Brian Dugan as the assistant director of the Training Division. Most recently, Mr. Dugan served as the special agent in charge of the Norfolk Field Office in Virginia.

    Mr. Dugan joined the FBI as a special agent in 1998 and was first assigned to the San Diego Field Office, where he largely worked domestic terrorism cases. He transferred to the San Francisco Field Office in 1999 to conduct gang investigations.

    In 2006, Mr. Dugan reported to the FBI Academy in Quantico, Virginia, as an instructor and developed new law enforcement and human intelligence courses for the FBI. He left the Academy in 2009 to work on a violent gang squad in the Northern Virginia Resident Agency of the Washington Field Office.

    Mr. Dugan was promoted to supervisory special agent and transferred to the Chicago Field Office in 2013 to lead a squad investigating child pornography and human trafficking. He also established a new gang squad addressing gun and gang violence on the North Side. In 2017, he was promoted to assistant special agent in charge of a counterintelligence branch at the Washington Field Office.

    In 2019, Mr. Dugan was promoted to section chief in the Directorate of Intelligence at FBI Headquarters. He was promoted to special agent in charge of the Norfolk Field Office in 2020.

    Prior to joining the FBI, Mr. Dugan served in the U.S. Marine Corps. He was commissioned as a second lieutenant and rose to captain and served in Japan, Korea, and Russia. He earned a Bachelor’s of Science in criminal justice from Pennsylvania State University and a Master’s in Business Administration from Touro University of California.

    MIL Security OSI –

  • MIL-OSI Asia-Pac: Technology Advisory Group (TAG) of Empowered Technology Group (ETG) meets to discuss the Opportunities and Interventions for Boosting Advanced Manufacturing

    Source: Government of India (2)

    Posted On: 18 FEB 2025 7:11PM by PIB Delhi

    The Technology Advisory Group (TAG) constituted by the Empowered Technology Group (ETG) convened its second meeting today under the chairmanship of Professor Ajay Kumar Sood, Principal Scientific Adviser (PSA) to the Government of India, to discuss the landscape, opportunities, and necessary interventions for strengthening advanced manufacturing in India.

    (PSA Prof Sood opening the session and delivering his initial remarks)

    The meeting brought together members of the TAG (comprising of 9 members from academia and 10 members from industry) (https://www.psa.gov.in/etg), members of the ETG, senior government officials, and domain experts to discuss ongoing activities and initiatives in advanced manufacturing in India, comparative analysis of the global landscape, and development of a coordinated national roadmap to accelerate manufacturing innovation.

    In his address, Professor Sood highlighted the recently announced National Manufacturing Mission in the Union Budget 2025, which is aimed at advancing India as a global manufacturing hub. He underscored the critical role of the ETG in identifying the most important challenges before the country across various sectors that can be addressed through suitable and appropriate technologies and the expert advisory support provided by the TAG, in fulfilling its Nation Building responsibilities. He  noted that discussions on several key topics in the first TAG meeting, such as Alternative Battery Technologies, Carbon Capture, Utilization, and Storage (CCUS), and Artificial Intelligence (AI), have contributed to significant national initiatives, including the AI mission, Anusandhan National Research Foundation (ANRF) MAHA-EV mission, and the CCUS mission.

    Prof. Sood emphasized that today’s discussions on Advanced Manufacturing are aimed at identifying key technologies and bottlenecks across the value chain—from design and production to sustainability and end-of-life considerations—to enhance efficiency, quality, sustainability and competitiveness. He emphasized that advanced manufacturing aligns closely with the vision of Atmanirbhar Bharat, ensuring self-reliance and global leadership in critical sectors.

    Dr. Preeti Banzal, Adviser/Scientist ‘G’ at the Office of the Principal Scientific Adviser to the Government of India, provided an overview of the ETG, outlining its mandate and functioning and the establishment of the TAG within its framework. Since its inception in February 2020, the ETG has conducted 65 meetings, evaluating 122 R&D, technology development/procurement and policy proposals from 27 ministries and engaging 153 subject matter experts to provide insights and recommendations for driving advancements in science, technology and innovation. She also highlighted key aspects of advanced manufacturing technologies, their strategic significance and latest developments from a national perspective.

    The meeting featured in-depth presentations from leading experts covering critical dimensions of advanced manufacturing:

    Dr. Nagahanumaiah, Director, Central Manufacturing Technology Institute (CMTI), Bangalore, presented on “Engineering of Smart Capital Goods”, focusing on India’s competitiveness in advanced manufacturing and the role of smart automation in shaping the future. He also gave an overview of the products developed and facilities at CMTI.

    Dr. Gurumurthy, Director, Foundation for Science Innovation and Development (FSID), IISc Bengaluru, discussed “Digitalized Manufacturing”, emphasizing additive and hybrid manufacturing, smart Industrial IoT systems, and predictive maintenance using digital twin technology.

    Dr. Sankhadip Das, Scientist E, Ministry of Electronics and IT (MeitY), delivered insights on “Additive Manufacturing”, highlighting its applications in aerospace, defense, healthcare, and automotive sectors, and its alignment with the United Nations Sustainable Development Goals (SDGs). He also talked about the National Strategy for Additive Manufacturing (NSAM) launched by MeitY in 2022.

    Mr. Atul Choudhari, CTO, Tata Consulting Engineers Limited and Member of TAG, presented on “3D Concrete Printing using Construction Waste”, showcasing sustainable solutions for cost-effective, eco-friendly infrastructure development.

    Prof. Kaushik Chatterjee, Chair, Department of Bioengineering, IISc Bengaluru, elucidated the new frontier of “4D Printing” and its applications in healthcare, including microrobots and deployable medical devices.

    Dr. N. Subramanian, Executive Director, Society for Electronic Transactions and Security (SETS) gave insights on the cybersecurity aspects of advanced manufacturing.

    The interventions thereafter resulted in insights and recommendations to strengthen the overall ecosystem for the advanced manufacturing sector in the country. The discussion highlighted the need for a nationally coordinated effort to accelerate advanced manufacturing capabilities, stakeholder collaboration between government, industry, and academia, capacity building and skill development to create a globally competitive workforce.

    Dr. (Mrs.) Parvinder Maini, Scientific Secretary, Office of the Principal Scientific Adviser to the Government of India, summarised the key points which emerged during the discussions, including the need for shared infrastructure, skilled workforce, addressing core technology issues, building capability centres close to manufacturing centres, creation of sensor hubs, regulatory alignments, creation of standards and coherent policies on advanced manufacturing.   

    In his closing remarks, Prof. Sood reiterated that a structured and strategic approach to advanced manufacturing would be a key enabler for India’s long-term industrial growth, and ambitions towards a robust product nation, aligning with the broader objectives of the National Manufacturing Mission.

     

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    MJPS/ST

    (Release ID: 2104455) Visitor Counter : 59

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: Police Officer Pleads Guilty To Gun Trafficking Offense

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

    Orlando, FL – Acting United States Attorney Sara C. Sweeney announces that Michael Adrian Nieto (31, St. Cloud) has pleaded guilty to dealing in firearms without a license. Nieto faces a maximum penalty of five years in federal prison. A sentencing date has not yet been set.

    According to the plea agreement, Nieto, a sworn law enforcement officer, repeatedly purchased and resold firearms to individuals. Among others, Nieto supplied firearms to Ernesto Vazquez, a key member of a criminal conspiracy that smuggled hundreds of firearms to the Dominican Republic, Puerto Rico, and Haiti. In addition, to benefit the conspiracy, Nieto corruptly used police databases to provide sensitive and confidential information to Vazquez.

    Between June 6, 2022, and September 4, 2024, Nieto purchased at least 58 firearms. Many of the firearms were identical and were purchased together or close in time to one another. On October 17, 2024, FBI and ATF agents executed a federal search warrant at Nieto’s residence. At the time of the search warrant, 12 firearms were still in his possession.

    On October 17, 2024, Nieto was interviewed by FBI and ATF agents. He admitted to repeatedly buying and reselling guns to individuals, including Vazquez, despite knowing that Vazquez was transferring these guns to third parties, in violation of federal law. Nieto also admitted that Vazquez had provided him with illegal items, including a machinegun conversion device.

    Vazquez previously pleaded guilty to conspiracy to traffic firearms. His sentencing hearing is scheduled for March 25, 2025.

    “The St. Cloud Police Department has worked closely with the Department of Justice to assist them in their investigation regarding former officer Michael Nieto. In the wake of the recent DOJ findings, we are conducting our own in-depth investigation into the matter.” said St. Cloud Police Chief Douglas Goerke. “SCPD pledges to take immediate action should an officer act in a manner that could break a community’s trust, no matter their rank or tenure with the department.”         

    This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Noah P. Dorman.

    MIL Security OSI –

  • MIL-OSI USA: ICE Washington, D.C., law enforcement partners arrest 3 illegal aliens in Northern Virginia

    Source: US Immigration and Customs Enforcement

    February 18, 2025Arlington, VA, United StatesEnforcement and Removal

    ARLINGTON, Va. — U.S. Immigration and Customs Enforcement assisted by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives, apprehended three illegally present aliens during a routine enforcement operation in Arlington, Feb. 11.

    “These illegally present individuals were in the Northern Virginia area in violation of U.S. immigration laws,” said ICE Enforcement and Removal Operations Washington, D.C. acting Field Office Director Patrick Divver. “ICE Washington, D.C.’s mission is to ensure the safety and security of our District of Columbia and Virginia communities through the arrest and removal of those individuals who undermine the safety of our communities and the integrity of our immigration laws. We take this mission extremely seriously, and we will continue to arrest and remove alien offenders.”

    During the targeted operation, ICE officers and FBI and ATF agents arrested:

    • A 68-year-old Mexican alien convicted of criminal trespass and disorderly conduct/public intoxication. The Mexican national illegally re-entered the United States after having previously been removed to Mexico in May 2003.
    • A 49-year-old, Salvadoran alien convicted of DWI in February 2010 and charged with another DWI in December 2024, both in Prince William County, Virginia. An immigration judge with the Justice Department’s Executive Office for Immigration Review ordered the Salvadoran alien removed from the U.S. in November 2005.
    • A 30-year-old Bolivian alien, who violated the terms of his lawful admission into the U.S.

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

    Learn more about ICE’s mission to increase public safety in our communities on X: @EROWashington.

    MIL OSI USA News –

  • MIL-OSI Security: Former Sarpy County Employee Sentenced for Obtaining Information From a Protected Computer

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

    United States Attorney Susan Lehr announced that Jeffrey Shafer, age 38, of Omaha, Nebraska, was sentenced on February 6, 2025, in federal court in Omaha for obtaining information from a protected computer. United States Magistrate Judge Michael D. Nelson sentenced Shafer to one year of probation. Shafer paid restitution in the amount of $26,950 prior to today’s sentencing.

    On or about January 16, 2023, Shafer, an Information Systems employee of Sarpy County, was placed on administrative leave. Shafer was informed the same day that he was prohibited from accessing Sarpy County property, physically or via computer. Shafer’s Sarpy County computer network login and credentials were disabled the same day.

    On January 25, 2023, a Sarpy County IT Manager observed suspicious logins to the Sarpy County computer network that occurred on January 24, 2023.  It was determined Shafer reenabled his account and accessed several accounts on the Sarpy County computer network, including the email accounts of county employees.

    FBI agents executed a search warrant at Shafer’s residence and conducted forensic examinations of Shafer’s electronic devices. The devices contained attribution evidence related to the unauthorized access into the Sarpy County computer network.

    This case was investigated by the Federal Bureau of Investigation.

    MIL Security OSI –

  • MIL-OSI Security: Ohio Man Sentenced to 35 Years in Prison for Sexual Exploitation of Children

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

    CLEVELAND – Conner Matthew Walker, 21, of Rocky River, Ohio, was sentenced to 35 years in prison by U.S. District Judge Bridget Meehan Brennan, after pleading guilty to three counts of sexual exploitation of children, one count of receipt and distribution of child sexual abuse materials (CSAM), and one count of possession of child pornography. He was also ordered to serve 20 years of supervised release after imprisonment.

    Walker admitted to harming his victims and recording the sexual abuse on his cellphone from September 2023 through January 2024. He connected with an 11-year-old victim through a children’s app and coerced her to send him sexually explicit photos. Two additional victims were identified as toddlers at a home daycare in Parma Heights, Ohio, where Walker resided occasionally. He further exploited his young victims when he uploaded and shared the content he produced to social media chat forums. Investigators searched Walker’s cellphone and discovered he possessed more than 1,000 additional CSAM images and videos.

    The case was investigated by the FBI Cleveland Division and prosecuted by Assistant United States Attorney Jennifer J. King for the Northern District of Ohio.

    To report child sexual abuse, please visit cybertipline.org, or call 1-800-843-5678, 24 hours a day, 7 days a week.

    MIL Security OSI –

  • MIL-OSI Security: Pointing Laser at Aircraft Sends Kalispell Man to Prison

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

    MISSOULA — A Kalispell man who admitted to aiming a laser pointer at an aircraft was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.

    The defendant, Nolan Wayne Hamman, 32, pleaded guilty in October 2024 to aiming a laser pointer at an aircraft.

    U.S. District Judge Dana L. Christensen presided.

    In court documents, the government alleged that on Nov. 25, 2023, a flight instructor operating a plane over Kalispell called 911 to report a person shining a laser pointer at her plane while she was flying with a minor student. Flathead County Sheriff’s Office deputies responded and located Hamman on the ground with the laser pointer. Hamman admitted to shining the laser at the plane while it was in flight. Further, Hamman engaged in this behavior over several months, and evidence demonstrated he pursued these planes because he believed they were tracking him. Hamman’s actions continually endangered multiple pilots, including two juveniles, and the safety of those on the ground in the Kalispell area.

    The U.S. Attorney’s Office prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force, Federal Aviation Administration, Flathead County Sheriff’s Office and Kalispell Police Department conducted the investigation.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Robert K. Tripp Named Assistant Director of the Human Resources Division

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

    The Federal Bureau of Investigation has named Robert K. Tripp as the assistant director of the Human Resources Division at FBI Headquarters in Washington, D.C. Mr. Tripp most recently served as the special agent in charge of the San Francisco Field Office.

    Mr. Tripp joined the FBI as an intelligence research specialist in 1998 and worked in the Criminal Investigative Division at Headquarters. He became a special agent in 2003 and was assigned to the St. Louis Field Office to investigate public corruption and white-collar crime.

    In 2006, Mr. Tripp transferred to the Washington Field Office and was detailed to work international mass marketing fraud through the Department of Justice Fraud Section. He was promoted to supervisory special agent in 2012 and worked in the Director’s Research Group at Headquarters, which prepares the director for meetings, conferences, and events.

    Mr. Tripp transferred to the Sacramento Field Office in California in 2014. He first supervised a public corruption and civil rights squad, then a squad responsible for violent crime and violent crimes against children. He was also the supervisor of the Fairfield Resident Agency, a Sacramento satellite office.

    In 2018, Mr. Tripp was promoted to assistant special agent in charge of the Sacramento office, responsible for all investigations of criminal and cyber threats and overseeing the criminal squads in Sacramento’s seven resident agencies. He also served as the acting commander of the newly established Sacramento Organized Crime Drug Enforcement Task Force.

    Mr. Tripp was promoted to inspector in 2021 and returned to Headquarters. He was promoted to special agent in charge of the San Francisco Field Office in 2022.

    Mr. Tripp earned a bachelor’s degree in history from Cornell University in Ithaca, New York, and a master’s and doctorate in history from Washington University in St. Louis.

    MIL Security OSI –

  • MIL-OSI Security: Timothy A. Ferguson Named Assistant Director of the Criminal Justice Information Services Division

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

    The Federal Bureau of Investigation has named Timothy A. Ferguson as the assistant director of the Criminal Justice Information Services Division in Clarksburg, West Virginia. Mr. Ferguson has served as the acting assistant director of the CJIS Division since April 2024.

    Mr. Ferguson joined the FBI as a special agent in 2002 and was assigned to the Dayton Resident Agency under the Cincinnati Field Office in Ohio, where he primarily worked criminal investigations with the Southern Ohio Safe Streets Task Force. He was promoted to supervisory senior resident agent in 2011.

    In 2015, Mr. Ferguson was promoted to assistant section chief of the Violent Crime and Gang Section in the Criminal Investigative Division at FBI Headquarters in Washington, D.C. He oversaw the division’s Safe Streets and Gang Unit, Violent Crime Unit, and Indian Country Crime Unit.

    Mr. Ferguson moved to the Springfield Field Office in Illinois in 2018 to serve as the assistant special agent in charge of the Criminal Branch. In 2020, he returned to FBI Headquarters as the section chief of the Field Operations Section and the Digital Forensics and Analytics Section in the Operational Technology Division.

    In 2023, Mr. Ferguson was promoted to deputy assistant director of the CJIS Division, responsible for the FBI’s National Threat Operations Center and the National Instant Criminal Background Check System Section.

    During his FBI career, Mr. Ferguson has served as a crisis negotiator, a SWAT Team operator, a medic, an adjunct faculty member, and a Behavioral Analysis Unit coordinator.

    Prior to joining the FBI, Mr. Ferguson served in the U.S. Army. He earned a bachelor’s degree in English from Welsh College in Nashville, Tennessee, and a master’s degree in behavioral science from Wright State University in Dayton, Ohio.

    MIL Security OSI –

  • MIL-OSI USA: Barr, Artificial Intelligence: Hypothetical Scenarios for the Future

    Source: US State of New York Federal Reserve

    Advances in artificial intelligence (AI) have accelerated rapidly over the past few years.1 It is now commonplace to see autonomous vehicles navigating city streets, and generative AI tools are available on phones and other devices wherever we go. AI innovations make headlines and play a big role in financial markets, and generative AI has the potential to change how we think about productivity, labor markets and the macroeconomy.2 Today, I will address that question by outlining two hypothetical scenarios for AI’s impact and the implications for businesses, regulators, and society. I will focus my comments on Generative AI, or GenAI, a subset of AI that has seen significant growth and integration into economic activity in just a few short years.
    GenAI and Its AdoptionCompared to earlier iterations of AI, GenAI is able to generate content, which allows it to significantly enhance productivity across a range of knowledge-based activities and be used by people without coding skills. GenAI will likely become a “general purpose technology,” with widespread adoption, continuous improvement, and productivity enhancements to a wide range of sectors across the economy. We are already seeing GenAI improve the productivity of its own R&D.3 There is widespread enthusiasm for GenAI, and survey evidence shows much faster rates of consumer adoption of GenAI already than were seen for the personal computer or the internet.4 While actual deployment of GenAI is limited to some business functions, and there have been pitfalls along the way, businesses in almost every sector are experimenting with or considering how to make use of the technology.5
    Firms are also exploring Agentic AI—Gen AI systems that not only produce new content, but are also able to proactively pursue goals by generating innovative solutions and acting upon them at speed and scale.6 Imagining Agentic AI’s ultimate application, some speculate that we could experience a “country of geniuses in a data center”—a collective intelligence that surpasses human capabilities in problem-solving and collaboration.7 Some believe Agentic AI has the potential to connect ideas in disparate domains, potentially transforming research and development and society more broadly.8
    Hypothetical Scenarios Considering How GenAI Could EvolveToday, I will outline two hypothetical scenarios for considering how GenAI could evolve.9 In one, we see only incremental adoption that primarily augments what humans do today, but still leads to widespread productivity gains. In the other, we see transformative change where we extend human capabilities with far-reaching consequences. For each scenario, I consider the potential implications for the economy and financial sector.
    Thinking through hypothetical scenarios can help widen our lens to a range of possible outcomes and provide a framework for assessing the balance between benefits and risks. Scenarios are not predictions of the future, but provide a framework for analyzing the factors that could lead to different outcomes. Reality is complex. GenAI adoption rates will vary across industries, leading to diverse impacts on market structures. Elements of both scenarios will likely come to pass, and play out at different rates, which will influence the effects on the economy and society. In the short term, GenAI may be overhyped, while in the long run, it may be underappreciated. And, of course, things might turn out differently from these hypotheticals.
    Hypothetical 1: Incremental Progress with Widespread Productivity GainsFirst, let me begin with the incremental scenario, where GenAI primarily augments work in existing processes and leads to steady and widespread productivity gains, but does not fundamentally unlock new capabilities or transform the economy.
    In this state of the world, GenAI tools enhance efficiency and enable more personalized solutions across industries, in ways that have incremental—but still meaningful—effects on people’s lives. For instance, in customer service, professional writing—but not this speech—and software engineering, GenAI-powered tools are already supporting workers, improving accuracy and speed, and these effects could spread to other sectors.10 In this world, health care sees significant improvements as GenAI reduces administrative burdens, assists with diagnostics, and personalizes treatment plans based on real-time patient data. Medicines and other treatments are developed at a faster pace.11 Education is similarly affected, as GenAI alleviates administrative tasks for teachers, allows lessons to be tailored to individual students, and permits students to learn by doing.12 In manufacturing, GenAI-optimized supply chains anticipate and adjust more quickly to disruptions, and current manufacturing processes are refined through virtual iteration.13 In materials science, GenAI-driven experimentation accelerates the discovery of new materials, leading to advances in everything from construction to electronics.14 Turning to the financial sector, we could see similar productivity gains. Community banks leverage GenAI-powered chatbots to provide customized financial advice rooted in local knowledge, while institutions of all sizes continue to advance use of GenAI for compliance monitoring, fraud detection, risk management, and document analysis.15
    The impact to society would be incrementally positive in this state of the world. Humans would use GenAI as a tool to deliver goods and services that we currently produce in a more efficient way. Productivity would go up. The economy would grow at a faster pace.16
    What does this mean for the labor force? The impact will depend on the industry and the nature of the job. GenAI experiments suggest the technology holds the promise of levelling up skills and bringing productivity of lower-performing workers into line with higher performing workers.17 In other cases, it could augment the highest performers, leaving them more time for creativity or strategic aspects of their roles. Increasing automation for certain tasks may displace some workers, where certain skills can be replicated by GenAI. Historically, as technology has replaced some jobs, it has augmented existing roles or created new ones.18 However, this is not to downplay the individual cost for workers who need to retrain, find other employment, or change careers in response to major changes in labor demand. Society will need to account for these possible effects of AI.
    What does this mean for the economy? As I noted before, the economy should grow, if the incremental productivity gains are widespread. However, in this scenario, it is possible that the expected value creation from GenAI was overhyped, anticipating transformative breakthroughs rather than incremental productivity gains. This could trigger market corrections for the firms that have heavily invested in this technology if reality doesn’t measure up to expectations. While the U.S. economy experienced a surge of productivity growth during the dot.com boom in the late 1990s, it was followed by a wave of bankruptcies, capital overhang, and a cautious business investment climate.19 The effects of the ensuing recession were widespread.
    What does this mean for financial stability and other financial risks? In this incremental scenario, GenAI may magnify both the vulnerabilities and sources of resilience that already exist in the system. Attractive trades become more crowded, but risk managers gain new insights.20 Malicious actors gain new tools, but cyber defenders become better armed. So long as financial regulators, enterprise risk managers, and others charged with managing downside risks prioritize efforts to keep pace with the evolving financial ecosystem, there’s nothing to suggest a wholesale transformation of the balance of risks. Of course, keeping pace will pose challenges, and it’s important that we all focus on the need to meet these risks.
    Hypothetical Scenario 2: Transformative ChangeNow, let’s consider a more dramatic hypothetical scenario, in which GenAI adoption extends beyond improving on what we currently do, and provides new expertise and capabilities that have transformative effects on the economy and society. In this scenario, humans deploy their imagination and creativity—combined with robust investment in research and development—to deploy intelligent GenAI systems to make rapid breakthroughs in, for example, biotechnology, robotics, and energy, fundamentally reshaping existing industries and creating new ones. In this instance, to focus the mind, we can think of GenAI as no longer only a tool for scientists to analyze data—in a sense, it becomes the scientist, directing the research.21
    For instance, let’s say that GenAI applications in health care do not simply improve how we currently deliver care, but also enable therapies that target genetic mutations and cure diseases previously considered incurable.22 Similarly, manufacturing evolves to create GenAI-driven robotic factories, with goods produced with new materials and atomic precision.23 Materials science is transformed through the discovery of programmable materials and self-healing substances, all of which reshape construction, technology, and consumer goods.24 Meanwhile, GenAI optimizes fusion energy research, expediting the shift to sustainable energy sources.25 And GenAI helps to create the next generation of quantum computing.26 In that way, GenAI improves its own energy sources and computing capabilities, enabling it to become a more powerful creative tool.27
    Finance also looks radically different than it does today. Individuals with access to hyper-personalized financial planning and businesses with innovative products and services seamlessly connect with one another through near-frictionless or novel forms of financial intermediation.28 Trading strategies and risk-management practices are boosted by greater GenAI-based analytic tools that have dynamic real-time access to an enormous knowledge base in both the public and private domains.29
    Although this transformative scenario is more speculative and is accompanied by a far greater degree of uncertainty than the first, it is important to consider given the extraordinary opportunities for human advancement and welfare that could arise, even if just one of its transformative components were to come to fruition. We would need to fundamentally reimagine how the economy is structured.
    What are the impacts on the labor force, in a world where GenAI’s capabilities extend beyond what humans can accomplish today? Humans may have a role to manage multi-agent GenAI frameworks, or fill gaps where GenAI solutions remain expensive or inefficient for some applications. But this is a world where some workers may see their current jobs disappearing. It is also a world in which they may see their own work transformed and have many more choices about the work they do. The nature of labor would radically change, and this will require us to have broader conversations about how to organize the economy. These conversations should wrestle with how to navigate major economic shifts in a way that recognizes the impact on the human condition, and the extent to which people derive their communities, friendships, personal sense of meaning and dignity from their work.
    What about the competitive landscape? There is probably a greater likelihood that rewards for businesses would be distributed more unevenly at first, as significant breakthroughs with far-reaching ramifications may benefit a subset of firms and industries and concentrate economic power in firms that control GenAI breakthroughs. If only a handful of firms have the ability to accomplish the incredible things I’ve mentioned above, they may dominate markets and crowd out competitors. To the extent that GenAI becomes broadly effective, widely available, and cheap, these market advantages could lessen over time if the right regulatory environment supports competitive market dynamics.30 But history suggests caution in this regard; a handful of players may dominate.31
    And finally, for finance, we should anticipate fundamental changes in this scenario. When it’s working well, the financial system helps move money and risk through time and space.32 To the extent there are fundamental changes to how the economy is organized, we could need a new set of institutions, markets, and products to facilitate transactions among households, businesses, and GenAI agents.
    What Should We Do?Among the many ways in which we can help to harness the potential benefits of GenAI and minimize its risks, I will highlight only a couple today.
    Financial institutions, and the Federal Reserve System, should consider investing sufficient resources in understanding GenAI technology, incorporating it into their workflows where appropriate, and training staff on how to use the technology responsibly and effectively.33 Meanwhile, the financial regulatory community should approach the changing landscape with agility and flexibility. And beyond the financial sector, collaboration between governments, private industry, and research institutions will be critical to ensure that GenAI systems are not weaponized in catastrophic ways. We should continue to focus on responsible AI research and development and implement safeguards against misuse, including monitoring systems, standards for secure AI system development, and agreement on red lines for acceptable use cases.34 We should be attuned to the impact of GenAI on our economic and political institutions. There’s a risk that it concentrates economic and political power in the hands of the very few and could lead to the gains being realized only by a small group, while the rest are left behind.
    Another thing I want to emphasize is AI governance. I think most would agree that the goal of the technology is to improve the human condition, and to do that, we need to be intentional in advancing that goal. We should make sure that we think about GenAI as enhancing, not replacing, humans, and set up best practices and cultural norms to that end. Every financial institution should recognize the limitations of the technology, explore where and when GenAI belongs in any process, and identify how humans can be best positioned to be in the loop. We should also focus on data quality, and make sure that uses of GenAI do not perpetuate or amplify biases inherent in the data used to train the system or make incorrect inferences to the extent the data is incomplete or nonrepresentative.35 In the realm of regulation, frameworks for understanding model risk may need to be updated to address the complexity and challenges of explaining AI methods and the difficulty of assessing data quality.
    We need to be attuned to the risk in finance. The very attributes that make GenAI attractive—the speed, automaticity, and ability to optimize financial strategies—also present risk.36 When the technology becomes ubiquitous, use of GenAI could lead to herding behavior and the concentration of risk, potentially amplifying market volatility. As GenAI agents will be directed to maximize profit, they may converge on strategies to maximize returns through coordinated market manipulation, potentially fueling asset bubbles and crashes. Speed, automaticity, and ubiquity could generate new risks at wide scale.37
    We also should monitor how introduction of this technology changes the banking landscape. Nonbanks may be more nimble and risk-forward in incorporating GenAI into their operations, which may push intermediation to less-regulated, less transparent corners of the financial sector. In addition, this competitive pressure may push all institutions, including regulated institutions, to take a more aggressive approach to GenAI adoption, heightening the governance, alignment, and financial risks I mentioned before.
    In conclusion, while AI’s impact will vary across industries and the reality is evolving, the scenarios I have outlined today provide a framework to begin thinking about how we should respond to developments in GenAI. However, as I mentioned above, elements of both scenarios will likely be present in the future, and play out at different rates, which will influence the effects on the economy and society. Rapid advances in this technology, such as Agentic AI and advancements in open-source models, underscore just how new this technology is and the importance of understanding what it means for individuals, businesses, and markets. Thank you.

    1. The views expressed here are my own and are not necessarily those of my colleagues on the Federal Reserve Board. Return to text
    2. See, for instance, Lisa D. Cook, “Artificial Intelligence, Big Data, and the Path Ahead for Productivity,” (speech at Technology-Enabled Disruption: Implications of AI, Big Data, and Remote Work Conference, Atlanta, Georgia, October 1, 2024). Return to text
    3. See Gaurav Sett, “How AI Can Automate AI Research and Development,” RAND Commentary, October 24, 2024. Return to text
    4. See Cory Breaux and Emin Dinlersoz, “How Many U.S. Businesses Use Artificial Intelligence?” (Washington: U.S. Census Bureau, November 28, 2023); Alexander Bick, Adam Blandin, and David J. Deming, “The Rapid Adoption of Generative AI,” NBER Working Paper No. 32966 (Cambridge, MA: National Bureau of Economic Research, September 2024, revised February 2025); and Leland Crane, Michael Green, and Paul Soto, “Measuring AI Uptake in the Workplace,” FEDS Notes (Washington: Board of Governors of the Federal Reserve System, February 5, 2025). Return to text
    5. There’s evidence of firms experimenting with these tools and then abandoning them—due to a multitude of reasons. See Kathryn Bonney, Cory Breaux, Cathy Buffington, Emin Dinlersoz, Lucia S. Foster, Nathan Goldschlag, John C. Haltiwanger, Zachary Kroff, and Keith Savage, “Tracking Firm Use of AI in Real Time: A Snapshot from the Business Trends and Outlook Survey,” NBER Working Paper No. 32319 (Cambridge, MA: National Bureau of Economic Research, April 2024). Return to text
    6. For more on Agentic AI’s uses, advantages, and risks, see Mark Purdy, “What Is Agentic AI, and How Will It Change Work?” Harvard Business Review (December 12, 2024). Return to text
    7. See Dario Amodei, “Machines of Loving Grace,” October 2024, https://darioamodei.com/machines-of-loving-grace. Return to text
    8. For biology and drug discovery, see Jean-Philippe Vert, “Unlocking the Mysteries of Complex Biological Systems with Agentic AI,” MIT Technology Review (November 13, 2024), https://www.technologyreview.com/2024/11/13/1106750/unlocking-the-mysteries-of-complex-biological-systems-with-agentic-ai; and “Owkin Announces First Patient Dosed in Phase I AI-Optimized Clinical Trial of OKN4395, a First-in-Class EP2/EP4/DP1 Triple Inhibitor for Patients with Solid Tumors,” Business Wire, January 30, 2025, https://www.businesswire.com/news/home/20250130436779/en/Owkin-Announces-First-Patient-Dosed-in-Phase-I-AI-optimized-Clinical-Trial-of-OKN4395-a-First-in-Class-EP2EP4DP1-Triple-Inhibitor-for-Patients-with-Solid-Tumors. Return to text
    9. Others have used other types of scenarios. See Anton Korinek, “The Economics of Transformative AI,” The Reporter (Cambridge, MA: National Bureau of Economic Research, December 31, 2024); Iñaki Aldasoro, Leonardo Gambacorta, Anton Korinek, Vatsala Shreeti, and Merlin Stein, “Intelligent Financial System: How AI Is Transforming Finance (PDF),” BIS Working Papers No. 1194 (Basel, Switzerland: Bank for International Settlements, June 2024); and Ethan Mollick, Co-Intelligence: Living and Working with AI (New York: Portfolio/Penguin, 2024). Return to text
    10. For worker productivity gains in customer service, see Erik Brynjolfsson, Danielle Li, and Lindsey R. Raymond, “Generative AI at Work,” NBER Working Paper No. 31161 (Cambridge, MA: National Bureau of Economic Research, April 2023, revised November 2023). For GenAI assisted writing gains, see Shakked Noy and Whitney Zhang, “Experimental Evidence on the Productivity Effects of Generative Artificial Intelligence,” Science, vol. 381, no. 6654 (July 2023): 187–92; Jordan Usdan, Allison Connell Pensky, and Harley Chang, “Generative AI’s Impact on Graduate Student Writing Productivity and Quality,” SSRN (August 29, 2024), https://dx.doi.org/10.2139/ssrn.4941022. For software engineering, see Sida Peng, Eirini Kalliamvakou, Peter Cihon, and Mert Demirer, “The Impact of AI on Developer Productivity: Evidence from GitHub Copilot,” arXiv:2302.06590, February 13, 2023; Leonardo Gambacorta, Han Qiu, Shuo Shan, and Daniel M. Rees, “Generative AI and Labour Productivity: A Field Experiment on Coding (PDF),” BIS Working Papers No. 1208 (Basel, Switzerland: Bank for International Settlements, September 2024); Zheyuan (Kevin) Cui, Mert Demirer, Sonia Jaffe, Leon Musolff, Sida Peng, and Tobias Salz, “The Effects of Generative AI on High-Skilled Work: Evidence from Three Field Experiments with Software Developers,” SSRN (September 5, 2024, revised February 10, 2025), https://dx.doi.org/10.2139/ssrn.4945566. For worker gains in the consulting industry, see Fabrizio Dell’Acqua, Edward McFowland III, Ethan Mollick, Hila Lifshitz-Assaf, Katherine C. Kellogg, Saran Rajendran, Lisa Krayer, François Candelon, and Karim R. Lakhani, “Navigating the Jagged Technological Frontier: Field Experimental Evidence of the Effects of AI on Knowledge Worker Productivity and Quality (PDF),” Harvard Business School Working Paper No. 24-013 (September 2023). Return to text
    11. See Ethan Goh, Robert Gallo, Jason Hom, et al., “Large Language Model Influence on Diagnostic Reasoning: A Randomized Clinical Trial,” JAMA Network Open (October 28, 2024), https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2825395; Nikhil Agarwal, Alex Moehring, Pranav Rajpurkar, and Tobias Salz, “Combining Human Expertise with Artificial Intelligence: Experimental Evidence from Radiology,” NBER Working Paper No. 31422 (Cambridge, MA: National Bureau of Economic Research, July 2023, revised March 2024); Ashley Capoot, “Reid Hoffman Enters ‘Wondrous and Terrifying’ World of Health Care with Latest AI Startup,” CNBC, February 2, 2025, https://www.cnbc.com/2025/02/02/reid-hoffman-launches-manas-ai-a-new-drug-discovery-startup.html; Kang Zhang, Xin Yang, Yifei Wang, Yunfang Yu, Niu Huang, Gen Li, Xiaokun Li, Joseph C. Wu, and Shengyong Yang, “Artificial Intelligence in Drug Development,” Nature Medicine, vol. 31 (January 2025): 45–59, https://doi.org/10.1038/s41591-024-03434-4; Qian Liao, Yu Zhang, Ying Chu, Yi Ding, Zhen Liu, Xianyi Zhao, Yizheng Wang, Jie Wan, Yijie Ding, Prayag Tiwari, Quan Zou, and Ke Han, “Application of Artificial Intelligence in Drug-Target Interactions Prediction: A Review,” NPJ Biomedical Innovations, vol. 2, no. 1 (January 2025), https://doi.org/10.1038/s44385-024-00003-9. Return to text
    12. For more on education, see Justin Wolfers, “An Econ Educators Guide to our AI-Powered Future,” Macmillan Learning, EconEd (presentation), September 26, 2024, https://www.macmillanlearning.com/college/us/events/econed; and Anne J. Manning, “Professor Tailored AI Tutor to Physics Course. Engagement Doubled,” Harvard Gazette, September 5, 2024. Return to text
    13. See Maxime C. Cohen and Christopher S. Tang, “The Role of AI in Developing Resilient Supply Chains,” Georgetown Journal of International Affairs (February 5, 2024); and Remko Van Hoek and Mary Lacity, “How Global Companies Use AI to Prevent Supply Chain Disruptions,” Harvard Business Review, November 21, 2023. Return to text
    14. See Sheldon Fernandez, “How Generative AI Can Be Used in Electronics,” Forbes, April 26, 2023, https://www.forbes.com/councils/forbestechcouncil/2023/04/26/how-generative-ai-can-be-used-in-electronics-manufacturing. Return to text
    15. For U.S. financial institutions, see Elizabeth Judd, “How to Balance Human and Machine While Using Chatbots,” Independent Banker, January 1, 2025; and U.S. Department of the Treasury, “Artificial Intelligence in Financial Services (PDF)” (Washington: U.S. Department of the Treasury, December 2024). For foreign financial institutions, see Bank of England and Financial Conduct Authority, “Artificial Intelligence in UK Financial Services—2024” (London: Bank of England and Financial Conduct Authority, November 21, 2024); and Bank of Japan, “Use and Risk Management of Generative AI by Japanese Financial Institutions,” Financial System Report Annex (Tokyo: Bank of Japan, October 29, 2024). For global financial institutions, see OECD, “FSB Roundtable on Artificial Intelligence (AI) in Finance (PDF),” Financial Stability Board, September 30, 2024. Return to text
    16. Lida R. Weinstock and Paul Tierno, “The Macroeconomic Effects of Artificial Intelligence (PDF),” Congressional Research Service, January 28, 2025. Return to text
    17. See Shakked Noy and Whitney Zhang, “Experimental Evidence on the Productivity Effects of Generative Artificial Intelligence,” Science, vol. 381, no. 6654 (July 13, 2023): 187–92; Brynjolfsson et al., “Generative AI at Work” (see footnote 9); and “for software engineering” from footnote 9; Korinek (2024) from footnote 7. Return to text
    18. See David H. Autor, “Why Are There Still So Many Jobs? The History and Future of Workplace Automation,” Journal of Economic Perspectives, vol. 29, no. 3 (Summer 2015): 3–30.See Simona Abis and Laura Veldkamp. Return to text
    19. See Ben S. Bernanke, “Will Business Investment Bounce Back?” (speech at the Forecasters Club, New York, NY, April 24, 2003). Return to text
    20. See Financial Stability Board, The Financial Stability Implications of Artificial Intelligence (Basel, Switzerland: Financial Stability Board, November 14, 2024); and Jon Danielsson and Andreas Uthemann, “How AI Can Undermine Financial Stability,” VoxEU: CEPR, January 22, 2024. Return to text
    21. For some very early examples, see Davide Castelvecchi, “Researchers Built an ‘AI Scientist’—What Can It Do?” Nature, August 30, 2024, https://www.nature.com/articles/d41586-024-02842-3; Daniil A. Boiko, Robert MacKnight, Ben Kline, and Gabe Gomes, “Autonomous Chemical Research with Large Language Models,” Nature, December 20, 2023, https://www.nature.com/articles/s41586-023-06792-0; and Helena Kudiabor, “Virtual Lab Powered by ‘AI Scientists’ Super-Charges Biomedical Research,” Nature, December 4, 2024, https://www.nature.com/articles/d41586-024-01684-3. Return to text
    22. For more on drug discovery and gene therapy, see Betty Zou, “Team Uses AI and Quantum Computing to Target ‘Undruggable’ Cancer Protein,” Phys Org, January 27, 2025; and Mohammad Ghazi Vakili et al., “Quantum-Computing-Enhanced Algorithm Unveils Potential KRAS Inhibitors,” Nature Biotechnology, January 22, 2025, https://www.nature.com/articles/s41587-024-02526-3. Return to text
    23. See NASA Technology Transfer Program, “Robonaut 2: Hazardous Environments (MSC-TOPS-44)”. Return to text
    24. For more on material sciences innovation, see Andy Extance, “First GPT-4-Powered AI Lab Assistant Independently Directs Key Organic Reactions,” Chemistry World, January 8, 2024, https://www.chemistryworld.com/news/first-gpt-4-powered-ai-lab-assistant-independently-directs-key-organic-reactions/4018723.article; Chenyang Liu, Xi Zhang, Jiahui Chang, You Lyu, Jianan Zhao, and Song Qiu, “Programmable Mechanical Metamaterials: Basic Concepts, Types, Construction Strategies—A Review,” Frontiers, vol. 11 (March 19, 2024); Aidan Toner-Rodgers, “Artificial Intelligence, Scientific Discovery, and Product Innovation,” MIT, November 27, 2024, https://aidantr.github.io/files/AI_innovation.pdf; and Thomas Hayes et al., “Simulating 500 Million Years of Evolution with a Language Model,” Science, January 16, 2025. Return to text
    25. See Tan Sui, “AI Could Help Overcome the Hurdles to Making Nuclear Fusion a Practical Energy Source,” The Conversation, January 29, 2025, https://theconversation.com/ai-could-help-overcome-the-hurdles-to-making-nuclear-fusion-a-practical-energy-source-247608; Jaemin Seo, SangKyeun Kim, Azarakhsh Jalalvand, Rory Conlin, Andrew Rothstein, Joseph Abbate, Keith Erickson, Josiah Wai, Ricardo Shousha, and Egemen Kolemen, “Avoiding Fusion Plasma Tearing Instability with Deep Reinforcement Learning,” Nature, vol. 626, February 21, 2024, https://doi.org/10.1038/s41586-024-07024-9; and Massimiliano Lupo Pasini, German Samolyuk, Markus Eisenbach, Jong Youl Choi, Junqi Yin, and Ying Yang, “First-Principles Data for Solid Solution Niobium-Tantalum-Vanadium Alloys with Body-Centered-Cubic Structures,” Nature: Scientific Data, vol. 11, no. 907 (August 22, 2024), https://doi.org/10.1038/s41597-024-03720-3. Return to text
    26. Nakia Melecio, “Exploring the Synergy: Quantum Computing and Generative AI at the Intersection of Innovation,” ScaleUp Lab Program, Enterprise Innovation Institute, Georgia Tech. Return to text
    27. For an example on GenAI and quantum computers, see Rahul Rao, “Quantum Computers Can Now Run Powerful AI That Works like the Brain,” Scientific American, April 22, 2024, https://www.scientificamerican.com/article/quantum-computers-can-run-powerful-ai-that-works-like-the-brain. For an example about AI and clean energy, see Office of Policy, “How AI Can Help Clean Energy Meet Growing Electricity Demand” (Washington: U.S. Department of Energy, August 16, 2024). For examples of how GenAI is augmenting creativity, see Tojin T. Eapen, Daniel J. Finkenstadt, Josh Folk, and Lokesh Venkataswamy, “How Generative AI Can Augment Human Creativity,” Harvard Business Review (July–August 2023); and Anil R. Doshi and Oliver P. Hauser, “Generative AI Enhances Individual Creativity but Reduces the Collective Diversity of Novel Content,” Science Advances, vol. 10, no. 28 (July 12, 2024). Return to text
    28. See Iñaki Aldasoro, Leonardo Gambacorta, Anton Korinek, Vatsala Shreeti, and Merlin Stein, “Intelligent Financial System: How AI Is Transforming Finance (PDF),” BIS Working Papers No. 1194 (Basel, Switzerland: Bank for International Settlements, June 2024); and Sarah Hammer, “From Turing to Trading: How AI Is Revolutionizing Finance,” Finance Centers at the Wharton School, July 10, 2024. Return to text
    29. Large language models may even allow for the creation of synthetic data that allows for enhancing macroeconomic nowcasting and forecasting through economic AI agents that can also help with analyzing macroeconomic trends and contribute to more informed financial decisionmaking. See Anne Lundgaard Hansen, John J. Horton, Sophia Kazinnik, Daniela Puzzello, and Ali Zarifhonarvar, “Simulating the Survey of Professional Forecasters,” SSRN (December 1, 2024), https://dx.doi.org/10.2139/ssrn.5066286. Return to text
    30. Kelly Ng, Brandon Drenon, Tom Gerken, and Marc Cieslak, “DeepSeek: The Chinese AI App That Has the World Talking,” BBC News, February 4, 2025, https://www.bbc.com/news/articles/c5yv5976z9po. Return to text
    31. For example, see IBM Newsroom, “Data Suggests Growth in Enterprise Adoption of AI Is Due to Widespread Deployment by Early Adopters, But Barriers Keep 40% in the Exploration and Experimentation Phases,” IBM, January 10, 2024, https://newsroom.ibm.com/2024-01-10-Data-Suggests-Growth-in-Enterprise-Adoption-of-AI-is-Due-to-Widespread-Deployment-by-Early-Adopters; and Jefferies Editorial Team, “Can Startups Outsmart Big Tech in the AI Race?” Jefferies, September 17, 2024, https://www.jefferies.com/insights/boardroom-intelligence/can-startups-outsmart-big-tech-in-the-ai-race. Return to text
    32. If AI agents proliferate in financial transactions, we will also need to be careful about the potential for unintended consequences such as collusion among AI agents. See Winston Wei Dou, Itay Goldstein, and Yan Ji, “AI-Powered Trading, Algorithmic Collusion, and Price Efficiency,” Jacobs Levy Equity Management Center for Quantitative Financial Research Paper, The Wharton School Research Paper, May 30, 2024, https://dx.doi.org/10.2139/ssrn.4452704. Return to text
    33. See Request for Information on the Development of an Artificial Intelligence (AI) Action Plan, 90 Fed. Reg. 9,088 (PDF) (February 6, 2025). Return to text
    34. See Heather Domin, “AI Governance Trends: How Regulation, Collaboration, and Skills Demand Are Shaping the Industry,” World Economic Forum, September 5, 2024. Return to text
    35. For more on bias introduced in models, see Moshe Glickman and Tali Sharot, “How Human–AI Feedback Loops Alter Human Perceptual, Emotional, and Social Judgements,” Nature Human Behavior, December 18, 2024, https://www.nature.com/articles/s41562-024-02077-2; Saul Asiel Flores, “‘Bias in, Bias out’: Tackling Bias in Medical Artificial Intelligence,” Yale School of Medicine, November 18, 2024; and Adam Zewe, “Researchers Reduce Bias in AI Models While Preserving or Improving Accuracy,” MIT News, December 11, 2024. For governance in central banks, see Claudia Alvarez Toca and Alexandre Tombini, Governance of AI Adoption in Central Banks (PDF) (Basel, Switzerland: Bank for International Settlements, January 2025). Return to text
    36. See, e.g., Michael P. Wellman, “Artificial Intelligence in Financial Services (PDF)” (written testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs, September 20, 2023). Return to text
    37. See Jon Danielsson and Andreas Uthemann, “AI Financial Crises,” VoxEU: CEPR, July 26, 2024. For more on algorithm collusion, see Wei Dou et al., “AI-Powered Trading, Algorithmic Collusion, and Price Efficiency” (see footnote 33). Return to text

    MIL OSI USA News –

  • MIL-OSI Security: Ten Defendants Plead Guilty in Multimillion-Dollar Sports-Betting and Money Laundering Scheme

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

    BIRMINGHAM, Ala. – Ten men pleaded guilty this week to managing a multi-million-dollar sports-betting operation, announced United States Attorney Prim F. Escalona and Special Agent in Charge Demetrius Hardeman of the Internal Revenue Service Criminal Investigation, Atlanta Field Office.

    Timothy J. Pughsley, 53, and Nathan Burdette, 39, of Birmingham, Alabama; Christopher Burdette, 32, of Chelsea, Alabama; Thomas Zito, 59, of Vestavia, Alabama; Gary Rapp, 46, of Lakeland, Tennessee; Mark Giaquinto, 52, of Upton, Massachusetts; Matthew Voorhees, 49, of Englewood, Colorado; David Richards, 39, of Las Vegas, Nevada; and Joshua Gentrup, 38, of Athens, Georgia, entered their guilty pleas before United States District Judge Madeline Haikala to conspiring to operate an illegal gambling business and to their participation in a money laundering conspiracy. Jonathan Lind, 46, of Birmingham, Alabama, also pleaded guilty to conspiring to operate an illegal gambling business. Sentencing hearings for the defendants are set in May 2025.

    According to the plea agreements, Pughsley began operating a bookmaking organization at least 17 years ago. The organization eventually became known as “Red44,” and bookmaking and betting activities occurred online via an offshore server located in Costa Rica. It is estimated that the organization accepted over $2 billion in wagers during its existence. Within the plea agreements, the defendants—all senior agents within Red44—agreed to pay excise tax restitution totaling $19,777,382.61 to the IRS arising from their acceptance of wagers from sports betters across the U.S. and to satisfy any income tax obligations that remain outstanding.

    “These guilty pleas are the end result of years of hard work by members of federal and state law enforcement agencies to enforce our nation’s gambling and tax laws,” Escalona said. “The defendants illegally accepted millions of dollars in wagers and lived lavishly while avoiding their excise tax obligations. This office will diligently pursue those who enrich themselves in violation of the law.”

    “Excise tax evasion and illegal sports betting are not victimless crimes,” said Special Agent in Charge Hardeman. “Money obtained from illegal gambling operations is often used to finance other criminal activities. IRS-CI special agents are skilled at following the money to investigate and expose these illegal organizations, who will be held accountable. Thank you to our local, state, and federal partners who assisted in this investigation.”

    IRS-Criminal Investigation and Homeland Security Investigations investigated the case, with assistance from the Vestavia Hills Police Department, Shelby County Sheriff’s Office, Alabama Department of Revenue, and Federal Bureau of Investigation. Assistant United States Attorneys Catherine Crosby, Kristen Osborne, and Ryan Rummage are prosecuting the case. 

    MIL Security OSI –

  • MIL-OSI Security: Bridgeport Man Sentenced to 40 Months in Federal Prison for Firearm Offense

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

    Marc H. Silverman, Acting United States Attorney for the District of Connecticut, announced that QUINTEN McKOY, also known as “Quack,” 33, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 40 months of imprisonment for unlawfully possessing firearms.  Judge Bolden ordered McKoy’s sentence to be served consecutive to a state sentence McKoy is currently service for unrelated offenses.  Once released from federal custody, McKoy will serve a three-year term of supervised release.

    According to court documents and statements made in court, after a series of shootings and murders in Bridgeport and Stratford, the FBI Bridgeport Safe Streets Task Force began an investigation into McKoy and others who were associated with gangs in the South End of Bridgeport.  On October 7, 2022, Task Force members conducted a court-authorized search of McKoy’s residence on Logan Street in Bridgeport and seized a stolen Glock .45 semi-automatic handgun; four gun magazines, including a high-capacity magazine loaded with 25 rounds of ammunition; a laser attachment; additional ammunition; and packages of suspected crack cocaine, heroin, and marijuana.  McKoy was arrested at that time.

    McKoy’s criminal history includes multiple felony convictions in state court for firearm and other offenses.  It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.

    McKoy has been detained since his arrest.  On September 12, 2024, he pleaded guilty to unlawful possession of a firearm by a felon.

    This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department.  The case was prosecuted by Assistant U.S. Attorneys Karen L. Peck and Ross Weingarten through 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.  In May 2021, the Justice 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 www.justice.gov/psn.

    MIL Security OSI –

  • MIL-OSI Security: Orlando Man Arrested for Using the Internet to Entice a Minor to Engage in Illicit Sexual Activity

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

    Orlando, Florida – United States Attorney Roger B. Handberg announces the arrest and charging by criminal complaint of Italo Rafael Brett Bonini (25, Orlando) for coercion or enticement of a minor using a facility of interstate commerce. If convicted, Brett Bonini faces a mandatory minimum penalty of 10 years, up to life, in federal prison. 

    According to the criminal complaint, on January 12, 2025, Brett Bonini had a video chat with two prepubescent child victims in Maryland through Discord, an online communication platform. During that video chat, both child victims were enticed into pulling down their pants, and one of the child victims complied with Brett Bonini’s request to display their genitals on screen. Law enforcement also reviewed messages from Brett Bonini to the victims in which Brett Bonini offered currency in an online video game in exchange for the victims to show their genitalia on screen. 

    The FBI obtained a search warrant for Brett Bonini’s residence and electronic devices. During the execution of that warrant, Brett Bonini admitted that he utilized his desktop computer to communicate with children, stating that children were easier to talk to.  He further admitted to communicating with one of the victims on the date in question.

    A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.           

    This case was investigated by the Federal Bureau of Investigation, Maryland State Police, and the Harford County Child Advocacy Center. It is being prosecuted by Assistant United States Attorney Brandon Cruz.

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

    MIL Security OSI –

  • MIL-OSI Security: Former Guatemalan Congressman sentenced to 18 years in federal prison for international drug trafficking violations in the Eastern District of Texas

    Source: Office of United States Attorneys

    PLANO, Texas – A former Guatemalan congressman has been sentenced to 18 years in federal prison for his role in an international drug trafficking conspiracy, announced Acting U.S. Attorney Abe McGlothin, Jr. of the Eastern District of Texas.

    Jose Armando Ubico Aguilar, 45, a former senior Republic of Guatemala official, pleaded guilty to ­­­­being involved in an international drug trafficking conspiracy and was sentenced to 216 months in federal prison by U.S. District Judge Michael Truncale on February 11, 2025.

    According to information presented in court, Ubico Aguilar served as an elected member of the Congress of the Republic of Guatemala from 2016 to 2024.  He also served as an elected Deputy and was the President of the National Defense Committee of the Congress of the Republic of Guatemala from 2018 to 2023. 

    “The sentencing of this corrupt Guatemalan official who brokered and facilitated cocaine shipments into the United States while betraying his country through his partnerships with known drug traffickers and other corrupt officials shows the commitment of the Eastern District of Texas United States Attorney’s Office to identify, disrupt, and dismantle Transnational Criminal Organizations,” said Acting U.S. Attorney Abe McGlothin, Jr.  “I am grateful to our law enforcement partners who worked tirelessly to ensure that Ubico Aguilar will no longer be allowed to hide behind his position of power.”

    “The sentencing of this corrupt official who brokered and facilitated cocaine shipments into the United States sends a message to Transnational Criminal Organizations across the world that they will be held responsible for the poison they distribute into the United States,” said Dallas DEA Special Agent in Charge Eduardo A. Chávez.  “This sentence reflects our continued resolve to partner with our international law-enforcement counterparts to fight greed, violence, and public corruption.”

    On March 3, 2021, a federal grand jury in the Eastern District of Texas indicted Ubico Aguilar charging him with federal drug trafficking violations.  In May 2024, Ubico Aguilar arrived in the United States and pleaded guilty.  During his plea hearing, Ubico Aguilar admitted his role in the conspiracy, including relaying drug-related information and U.S. currency to another Guatemalan official on behalf of an international drug trafficker. These actions resulted in the safe passage of at least 450 kilograms of cocaine through Guatemala for distribution in the United States.

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

    This case was investigated by the North Texas Organized Crime Drug Enforcement Task Force (“OCDETF”) Strike Force Group Two; the U.S. Drug Enforcement Administration’s Dallas Division; the DEA’s Guatemala City Country Office and the DEA’s San Jose (Costa Rica) Country Office; the FBI’s Dallas Field Office; the Homeland Security Investigation’s Dallas and Guatemala Field Offices; the U.S. Marshals Service’s Dallas Field Office; and Customs and Border Protection’s San Diego Field Office. The Justice Department’s Office of International Affairs of the Department’s Criminal Division also provided significant assistance in securing the surrender of Ubico Aguilar.  

    This case was prosecuted by Assistant U.S. Attorney Christopher Eason.                                        

    MIL Security OSI –

  • MIL-OSI Security: United States Attorney’s Office Announces Departure of Adair Ford Boroughs as U.S. Attorney

    Source: Office of United States Attorneys

    First Assistant U.S. Attorney Brook B. Andrews is now Acting U.S. Attorney

    COLUMBIA, S.C. — The United States Attorney’s Office for the District of South Carolina announced today the departure of Adair F. Boroughs as U.S. Attorney following termination by the new administration.

    Under the Vacancies Reform Act, First Assistant U.S. Attorney Brook B. Andrews is now the Acting U.S. Attorney for the District of South Carolina.  As Acting U.S. Attorney, Andrews is the chief federal law enforcement official in the state of South Carolina.

    Andrews is a career federal prosecutor who first joined the Department of Justice through the Attorney General’s Honors Program in 2009. In addition to serving as First Assistant, Andrews previously served as Deputy Criminal Chief over the White Collar and General Crimes Section, District Ethics Officer, and as an Assistant U.S. Attorney handling a wide range of criminal, civil, and appellate matters. Andrews received an undergraduate degree from Davidson College, a master’s degree from the George Washington University, and a law degree from the University of South Carolina School of Law. Before joining the Department of Justice, Andrews clerked for U.S. District Judge Margaret Seymour of the District of South Carolina, and Chief Justice Jean Toal of the South Carolina Supreme Court.

    Boroughs was sworn in as United States Attorney in July of 2022, following a nomination by President Biden and confirmation by the U.S. Senate. As United States Attorney, Boroughs oversaw a staff that included approximately 140 attorneys and support personnel. During her tenure, Boroughs prioritized enforcement of federal civil rights laws and partnering with local, state, and federal law enforcement to address violent crime. The office secured five federal hate crime convictions and hosted seven United Against Hate events around the state in partnership with FBI Columbia to educate the public on the existence of a federal hate crime statute and encourage the reporting of hate crime incidents.

    Boroughs prioritized the prosecution of offenders driving violence in South Carolina communities and recognized the value of local partners in identifying these offenders. Under her tenure, the office announced multi-defendant indictments and takedowns disrupting gun trafficking rings, illegal narcotics operations, and gang violence. She also oversaw multiple human trafficking, child exploitation, and white-collar prosecutions, including the recent indictment and extradition of a Nigerian national for a sextortion scheme resulting in the death of a 17-year-old Gavin Guffey. 

    “It has been the honor of my career to return to the Department of Justice and to serve alongside the men and women of the U.S. Attorney’s Office,” said Adair Ford Boroughs, “The career men and women of this office work tirelessly day in and day out to meet the Department’s mission–to uphold the rule of law, keep our country safe, and protect civil rights. It has been my honor to support them in this critical and patriotic work however I could for as long as I could. To my colleagues, our law enforcement partners, and our South Carolina community, thank you for trusting me with this work.”

    ###

    MIL Security OSI –

  • MIL-OSI Security: FBI Media Alert: FBI Offers Reward for Los Lunas Bandit in a Black Hoodie Responsible for a Bank Robbery

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

    The FBI and Los Lunas Police Department are asking for the public’s help to identify a man who robbed U.S. Bank at 2421 Main Street SE, Los Lunas, on Wednesday, February 12, 2025, at approximately 5 p.m.

    Suspect description:

    • Race: Hispanic
    • Height: approximately 5’10”- 6’0”
    • Build: Thin
    • Clothing: Blue Jeans, Black Hoodie, Sunglasses, Face mask, black shoes

    The suspect entered the bank and passed a demand note to the teller, then verbally demanded more money from a second teller. He was observed leaving northbound from the bank.

    The FBI is offering a reward of up to $2,000 for information leading to the arrest and conviction of this suspect. Anyone with information about this robbery is asked to contact the FBI at (505) 889-1300.

    Information about other bank/credit union robbers wanted by the FBI can be found at bankrobbers.fbi.gov. Bank robbery carries a possible prison term of up to 20 years. The use of a gun, other dangerous weapon, toy gun, or hoax bomb device during the commission of a bank robbery can be punishable by a prison term of up to 25 years.

    MIL Security OSI –

  • MIL-OSI Security: Former Finance Director Admits to Embezzling From Non-Profit

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

                WASHINGTON – Jarrett Lewis, 44, of Washington, D.C., pleaded guilty today to one count of wire fraud in connection with an embezzlement scheme that bilked a District non-profit advocacy organization of more than $320,000, announced by U.S. Attorney Edward R. Martin, Jr., and FBI Special Agent in Charge Sean Ryan, of the Washington Field Office’s Criminal and Cyber Division.

                U.S. District Court Judge John D. Bates scheduled a sentencing hearing for June 16, 2025.

                Lewis was employed by the victim agency between June 2021 and October 2022. According to the statement of facts, while serving as Director of Finance for the non-profit, Lewis perpetrated a scheme to defraud his employer. Lewis was one of three employees at Victim 1 with access to the non-profit’s bank account. It was part of Lewis’s duties to pay bills on behalf of the organization. Lewis was also provided with a VISA card for an account belonging to Victim 1, and was authorized to use the VISA card to incur expenses on behalf of Victim 1 for goods and services related to its operations.

                On 32 occasions, Lewis took advantage of his position by accessing Victim 1’s account and causing funds to be transferred to his personal account and for his own personal benefit. The total loss suffered by Victim 1 resulting from these transfers is $309,950.88. Lewis also used the non-profit’s VISA to book and pay for personal travel for himself, his family, and friends, totaling $9, 112. 96. In total, the parties stipulate that Lewis’s scheme to defraud amounts to a total of $321,057.98.

                Lewis was arrested on September 5, 2024. He faces a custodial sentence in addition to fines and restitution.

                This case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Michael Truscott with the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.

    ##

    24cr391

    MIL Security OSI –

  • MIL-OSI Security: Romanian Police Serve Dozens of Warrants Following Parallel Investigation with the FBI’s Los Angeles Field Office

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

    Romanian law enforcement officials conducted dozens of warrants this week in the Romanian counties of Brasov and Mures, following a parallel investigation with the FBI.

    The search warrants targeted locations suspected to have ties to an organized crime group engaged in ATM skimming in the United States and money laundering.

    During the operation, Romanian officials also detained several individuals for questioning and seized large amounts of cash, several vehicles, as well as skimming devices and associated instruments.

    “This group profited handsomely by targeting vulnerable EBT recipients who rely on funds to support their families and callously deprived victims of their basic needs,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This investigation is yet another example of FBI Agents working closely with our foreign partners to identify, disrupt and dismantle transnational criminal enterprises who enter the United States illegally for the sole purpose of conducting criminal activity.”

    Today’s operation is the culmination of a two-year investigation conducted by the FBI and Romanian authorities to dismantle the command and control of the Dorneanu Organized Crime Group: a transnational criminal organization whose members conduct ATM skimming operations in the United States and then launder the profits back to Romania.

    “These individuals targeted and stole from our community’s most vulnerable citizens,” said Acting United States Attorney Joseph T. McNally. “Working together with our local, federal, and international partners, we can and will continue to root out and punish transnational criminal organizations and protect the less fortunate and American taxpayers.”

    The subjects targeted in this investigation worked directly for, or were associated with, Mihai Dorneanu—the alleged leader of the Dorneanu Organized Crime Group. Five members of this organization were arrested by the FBI and convicted in the Central District of California with violations including conspiracy, bank fraud, aggravated identity theft, and visa fraud. Four others were arrested for state violations by local authorities in Ventura and San Bernardino Counties. As a result of ongoing efforts in this case to disrupt ATM skimmers in Southern California, law enforcement recovered over 8,500 stolen credit card numbers belonging to victims in the United States.

    The five federal defendants include the following:

    • Marius Oprea was sentenced to six years and three months in federal prison. U.S. Attorney Press Release
    • Dan Eugen Boar was sentenced to four years in federal prison.
    • Radu-Marian Moldovan was sentenced to time served in federal prison.
    • Attila Ravasz was sentenced to one year and three months in federal prison.
    • Andrei-Raul Cirilescu was sentenced to two years and four months in federal prison.

    A statement announcing the operation was also issued by Romanian authorities (translation available upon visiting page).

    The domestic investigation was conducted jointly by the Ventura County District Attorney’s Office; the San Bernardino County Human Services Fraud Investigation Unit; the Diplomatic Security Service; the Los Angeles Police Department; and the Los Angeles Sheriff’s Department. The federal defendants were prosecuted by the United States Attorney’s Office in Los Angeles.

    The FBI’s foreign partners include the Brașov Brigade for Combatting Organized Crime; prosecutors with the Directorate for the Investigation of Organized Crime and Terrorism—Brașov Territorial Service; and Europol.

    MIL Security OSI –

  • MIL-OSI: NANO Nuclear Energy Strengthens Intellectual Property Portfolio with Four New Patent Applications Updated

    Source: GlobeNewswire (MIL-OSI)

    Protections Surrounding Key Enabling ALIP Technology Adds to NANO Nuclear’s Stable of Granted or Acquired Patents and Patent Applications

    New York, N.Y., Feb. 18, 2025 (GLOBE NEWSWIRE) — NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear” or “the Company”), a leading advanced nuclear energy and technology company focused on developing clean energy solutions, today announced that it has filed four new separate utility patent applications with the United States Patent and Trademark Office (USPTO) related to NANO Nuclear’s Annular Linear Induction Pump (ALIP) technology.

    The ALIP technology, a thermal management and distribution system which is based on electromagnetic (rather than mechanical) pumps, is a core technology in the development of advanced molten-salt and liquid-metal nuclear reactors. By utilizing a time-varying magnetic field, ALIPs enable the movement of conductive fluids without mechanical components, reducing wear and maintenance requirements while increasing efficiency.

    The ALIP technology, acquired by NANO Nuclear last year and part of its suite of energy systems, is considered a key-enabling technology for the development of advanced nuclear reactors, not only for NANO Nuclear’s microreactors in development but as a third-party commercial opportunity for other advanced nuclear reactor systems.

    In addition to enhancing energy conversion cycles, optimizing thermal management, and ensuring operational longevity in high-temperature applications across the energy, propulsion, and industrial sectors, applications of the ALIP technology extend beyond nuclear energy to space power and propulsion systems, industrial cooling systems, and defense applications, positioning NANO Nuclear at the forefront of emerging high-performance fluid control markets.

    A U.S. Department of Energy’s Small Business Innovation Research (SBIR) Phase III project is ongoing to refine the ALIP technology, led by inventor and NANO Nuclear’s Head of Thermal Hydraulics and Space Program Dr. Carlos O. Maidana, with a view to separately commercialize the technology as a component for liquid metal and all molten salt-based nuclear reactors.

    Figure 1 – NANO Nuclear Energy’s Annular Linear Induction Pump (ALIP) technology cross-sectional visualization.

    “The development and eventual commercialization of the ALIP technology is essential for advancing next-generation nuclear reactor solutions,” said Carlos O. Maidana, Ph.D., Head of Thermal Hydraulics and Space Program of NANO Nuclear Energy. “Filing these utility patents highlights our commitment to leading the charge in next-generation technologies that are critical to the ongoing evolution of advanced energy systems. I’m pleased to have housed these inventions within NANO Nuclear and to lead the team to progress and refine this technology.”

    The newly filed patent applications include:

    1. Patent Application # 19/030,148, titled “Integrated platform and method for optimizing an electromagnetic pump,” relates to the development of software for the design of annular linear induction pumps.
    2. Patent Application # 19/030,130, titled “Electromagnetic pump system and method for moving conducting fluid,” relates to the design of the next generation of annular linear induction pumps.
    3. Patent Application # 19/030,098, titled “Electromagnetic pump and method for manufacturing the same,” relates to the advanced manufacturing of annular linear induction pumps.
    4. Patent Application # 19/030,068, titled “Cooling system for electromagnetic pump system,” relates to the design of a micro-channel cooling system, using advanced manufacturing methods, for annular linear induction pumps operating at very high temperature.

    These intellectual properties are expected to provide enhanced component life span and operation metrics in all advanced molten-salt and liquid-metal reactors, including NANO Nuclear’s KRONOS MMR™, LOKI MMR™, and ODIN portable microreactor, all of which are currently in development.

    “The filing of these additional utility patents further bolsters our intellectual property portfolio and helps to ensure the protection of our progress in developing this key enabling technology,” said James Walker, Chief Executive Officer and Head of Reactor Development of NANO Nuclear Energy. “We believe that the ALIP technology will be instrumental in the development and optimization of the next generation of advanced nuclear reactors, and I’m pleased with the progress Dr. Maidana has overseen through the SBIR Phase III program. We look forward to continuing our progress with ALIP with a view towards including in it our own microreactors in development as well as seeking to separately commercialize it as soon as possible.”

    About NANO Nuclear Energy, Inc.

    NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across five business lines: (i) cutting edge portable and other microreactor technologies, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation, (iv) nuclear applications for space and (v) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

    Led by a world-class nuclear engineering team, NANO Nuclear’s reactor products in development include “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors. NANO Nuclear is also developing patented stationary KRONOS MMR™ Energy System and space focused, portable LOKI MMR™.

    Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

    HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

    NANO Nuclear Space Inc. (NNS), a NANO Nuclear subsidiary, is exploring the potential commercial applications of NANO Nuclear’s developing micronuclear reactor technology in space. NNS is focusing on applications such as the LOKI MMR™ system and other power systems for extraterrestrial projects and human sustaining environments, and potentially propulsion technology for long haul space missions. NNS’ initial focus will be on cis-lunar applications, referring to uses in the space region extending from Earth to the area surrounding the Moon’s surface.

    For more corporate information please visit: https://NanoNuclearEnergy.com/

    For further NANO Nuclear information, please contact:
    Email: IR@NANONuclearEnergy.com
    Business Tel: (212) 634-9206

    PLEASE FOLLOW OUR SOCIAL MEDIA PAGES HERE:

    NANO Nuclear Energy LINKEDIN
    NANO Nuclear Energy YOUTUBE
    NANO Nuclear Energy X PLATFORM

    Cautionary Note Regarding Forward Looking Statements

    This news release and statements of NANO Nuclear’s management in connection with this news release contain or may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events, which may impact our expected future business and financial performance, and often contain words such as “expects”, “anticipates”, “intends”, “plans”, “believes”, “potential”, “will”, “should”, “could”, “would” or “may” and other words of similar meaning. In this press release, forward-looking statements include those related to (i) the anticipated benefits to NANO Nuclear of the patent applications described herein and (ii) the future prospects for the ALIP technology generally as part of NANO Nuclear’s reactors in development or via separate commercialization. These and other forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) or related state or non-U.S. nuclear fuel licensing submissions, (ii) risks related the development of new or advanced technology and the acquisition of complimentary technology or businesses, including difficulties with design and testing, cost overruns, regulatory delays, integration issues, securing intellectual property protection, and the development of competitive technology, (iii) our ability to obtain contracts and funding to be able to continue operations, (iv) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor or other technology in the timelines we anticipate, if ever, (v) risks related to the impact of U.S. and non-U.S. government regulation, policies and licensing requirements, including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (vi) similar risks and uncertainties associated with the operating an early stage business a highly regulated and rapidly evolving industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

    Attachment

    The MIL Network –

  • MIL-OSI: Mavenir and EdgeQ Introduce Industry’s First Software-Defined 4G and 5G Next Generation Small Cells for Neutral Host and Urban Densification

    Source: GlobeNewswire (MIL-OSI)

    RICHARDSON, Texas, Feb. 18, 2025 (GLOBE NEWSWIRE) — Mavenir, the cloud-native network infrastructure provider building the future of networks, and EdgeQ, a leader in 5G wireless infrastructure, unveil the next generation of indoor and outdoor small cells at the Mobile World Congress Barcelona 2025. The cloud-native, software programmable small cells deliver both 4G and 5G on a single chip, allowing customers to dynamically reconfigure and elastically scale from 4G to 5G without any hardware change, redesign, or reinstallation.

    The collaboration introduces new capabilities aimed at enterprise and neutral host providers for indoor environments and meet the demands of communication service providers (CSPs) needing cutting-edge outdoor equipment to support urban densification.

    The next generation small cell offering will focus on enabling flexibility, low power consumption, and ease of deployment. The solution empowers CSPs to address rapidly increasing data traffic demands while ensuring a long-term return on investment. The small cell solution, set for general availability in 2Q 2025, will support a range of 4G and 5G spectrum bands, and flexible configurations from single-band 4G or 5G setups to complex multi-band combinations, on a single board. Additionally, the solution offers a future-proof approach with remote software upgrades, allowing CSPs to migrate smoothly from 4G to 5G without hardware changes and maximizing their investments.

    Sachin Karkala, SVP & GM RAN at Mavenir, said: “This strategic relationship will be disruptive for the small cell market, introducing new capabilities that meet a wide range of needs. EdgeQ is a partner that’s working at the cutting edge of silicon technology, and this partnership enables increased levels of flexibility for CSPs, enterprises and neutral host providers. We’re changing the economics of 5G deployments with small cells by reducing energy consumption, simplifying deployment and ensuring long-term ROI.”

    Mavenir’s indoor small cell solution leverages EdgeQ’s highly programmable “Base station-on-a-chip” to deliver a singular solution that is dynamically configurable to help service providers navigate 4G to 5G migration, NSA to SA migration, TDD and FDD migration, and multi-carrier support. The lean design is ideal for both indoor and outdoor deployments where ubiquity of coverage at low TCO is expected by operators.

    Vinay Ravuri, Founder and CEO of EdgeQ, said: “We are delighted to partner with Mavenir to enable a new category of small cells that converges multiple radios, bands, and carriers at new unit economics long sought after by service providers. The flexibility that we are enabling with Mavenir will drive frictionless small cell deployments by meeting the short and long-term needs of all connectivity providers. Our state-of-the-art 4G and 5G platform makes the widest range of spectrum configurations possible and ensures a clear upgrade path as traffic grows.”

    Mavenir’s small cell solutions enable enhanced network capacity and coverage in indoor and outdoor environments meeting the full range of public and private network use cases.

    Mavenir’s full radio portfolio will be displayed at the upcoming MWC Barcelona, March 3-6, in Hall 2, Stand 2H60. For more on Mavenir’s presence at the show visit https://www.mavenir.com/mwc-2025/

    About Mavenir:

    Mavenir is building the future of networks today with cloud-native, AI-enabled solutions which are green by design, empowering operators to realize the benefits of 5G and achieve intelligent, automated, programmable networks. As the pioneer of Open RAN and a proven industry disruptor, Mavenir’s award-winning solutions are delivering automation and monetization across mobile networks globally, accelerating software network transformation for 300+ Communications Service Providers in over 120 countries, which serve more than 50% of the world’s subscribers. For more information, please visit www.mavenir.com

    About EdgeQ

    EdgeQ is a Silicon Valley based semiconductor company that has developed the world’s first software-defined 4G+5G “Base Station-on-a-Chip,” giving customers the revolutionary ability to build and deploy cellular networks on a single chip the size of a coin. Led by executives from Qualcomm, Intel, and Broadcom, EdgeQ is pioneering converged connectivity and AI that is fully software-customizable and programmable. The company is backed by world-renowned investors and industry titans. To learn more about EdgeQ, visit www.edgeq.io 

    PR Contacts:

    Mavenir: Emmanuela Spiteri | PR@mavenir.com
    EdgeQ: Edward Wu (Head of Marketing) | ewu@edgeq.io

    The MIL Network –

  • MIL-OSI USA: New Treatment Improves Bovine IVF

    Source: US State of Connecticut

    Up until the 1950s, scientists were scratching their heads trying to figure out why their experiments using perfectly healthy eggs and sperm to develop in-vitro fertilization (IVF) were unsuccessful.

    Then, they made a critical discovery — sperm capacitation.

    Maria Gracia Gervasi, assistant professor of animal science in the College of Agriculture, Health and Natural Resources, is an expert on sperm capacitation and the application of assisted reproductive technologies such as IVF in rodent and bovine species. She is part of a team that recently developed a new method for sperm capacitation that makes bovine IVF more effective.

    Sperm capacitation is a set of processes mammalian sperm need to undergo while they are inside the female reproductive system before they can fertilize an egg.

    During capacitation, a series of molecular pathways are activated that cause the sperm to move differently, known as “hyperactive motility.” The sperm needs to be moving this way to successfully penetrate an egg to fertilize it. There are also changes to the sperm head that expose the part of the sperm that fuses with the egg during fertilization.

    The discovery of capacitation enabled the development of IVF technology, revolutionizing human and animal reproduction.

    Gervasi is part of a group of collaborators that published their findings in Theriogenology. Claudia E. Osycka-Salut, a researcher from the Instituto de Investigaciones Biotecnologicas (IIBio-UNSAM-CONICET), Buenos Aires is the first author on the paper.

    In Gervasi’s previous lab, they worked on a study showing that using a calcium ionophore – a kind of chemical that binds to and help transport ions – improved sperm capacitation in mice. This led her to wonder if it would work in bovine species as well.

    When bovine sperm are capacitated in the laboratory, scientists put them in a medium containing calcium, bicarbonate, a protein called bovine serum albumin, and heparin.

    “All of these components are required for sperm capacitation in bovine species and IVF,” Gervasi says.

    When Gervasi and her team introduced the calcium ionophore, it increased calcium levels in the medium. This caused the sperm to stop moving. Then, when the researchers washed the calcium out of the medium, the sperm started moving again with hyperactive motility – indicating they had induced capacitation.

    In this study, they found that the ionophore achieved similar results as traditional IVF procedures without heparin.

    However, when they then tested the ionophore with heparin, there were significant improvements in fertilization rates and embryo development.

    The fertilization rate for sperm treated with the ionophore was 83%, compared to 70% in the untreated group. The rate of fertilized eggs that developed into embryos increased from 11% to 27%.

    “The difference is just adding this little sperm treatment before using it for IVF,” Gervasi says.

    This approach could have a significant impact on the bovine industry in the U.S. and globally as IVF is an increasingly popular method for breeding cattle. This is because it is much easier to take semen from a bull with characteristics a farmer wants to introduce into a herd and ship that semen or embryos rather than having to move the bull around.

    “The application of our treatment for in-vitro production to improve the capacitation and fertilization could have a huge impact on the industry because we could double the number of embryos,” Gervasi says. “It’s a big improvement.”

    This treatment could also improve fertilization and embryo development rates for cryogenically preserved semen that has already been sexed. The process of sexing the semen damages the sperm, leading to reduced fertilization rates.

    “Being able to test our treatment with those sperm would also be very applicable to what industry is using nowadays,” Gervasi says.

    Gervasi will follow up this work by seeing if embryos produced from sperm treated with the ionophore remain more successful than those produced without the ionophore once implanted in an animal.

    Gervasi is currently working on a separate sperm treatment that could be combined with the ionophore treatment to bolster the improvements demonstrated in this study. She is also interested in analyzing the genetic quality of the embryos produced using these treatments.

    “My lab here at UConn is focused on understanding how sperm and sperm treatments during capacitation can influence not only fertilization, but post-fertilization events like embryo development,” Gervasi says. “So, I will definitely be focusing a lot on embryo quality and what is the sperm bringing to it.”

    This work was supported by Agriculture and Food Research Initiative Competitive #2022-67016-36302 from the USDA National Institute of Food and Agriculture.

    This work relates to CAHNR’s Strategic Vision area focused on Ensuring a Vibrant and Sustainable Agricultural Industry and Food Supply.

    Follow UConn CAHNR on social media

    MIL OSI USA News –

  • MIL-OSI: Baltic Horizon will hold an Investor Conference Webinar to introduce the results for Q1-Q4 2024

    Source: GlobeNewswire (MIL-OSI)

    Baltic Horizon Fund invites unitholders, investors, analysts and other stakeholders to join its investor conference webinar, scheduled on 25 February 2025 at 13:00 PM (CET) or 14:00 PM (EET).

    The webinar will be hosted by Tarmo Karotam, the Fund Manager of Baltic Horizon Fund. Q&A session will follow after the presentation. Due to limited webinar time, we encourage participants to send their questions no later than one day before the webinar to tarmo.karotam@nh-cap.com.

    To join the webinar, please register via the following link: https://nasdaq.zoom.us/webinar/register/WN_vEnjKPnnQJm5QdqH6sTMfQ

    You will be provided with the webinar link and instructions how to join successfully. When joining the webinar for the first time, you will be asked to download the plug-in which will take only few seconds. In case plug-in can’t be downloaded, a web browser which enables attending the webinar, opens automatically. The registration is open until 25 February at 12:00 PM (CET)/ 13:00 PM (EET).

    Registered participants will receive a reminder e-mail one hour prior to the webinar. The webinar will be recorded and available online for everyone at the company’s website on www.baltichorizon.com and on Nasdaq Baltic youtube.com account.

    For additional information, please contact:

    Tarmo Karotam
    Baltic Horizon Fund manager
    E-mail tarmo.karotam@nh-cap.com
    www.baltichorizon.com

    The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS. 

    Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, www.baltichorizon.com

    To receive Nasdaq announcements and news from Baltic Horizon Fund about its projects, plans and more, register on www.baltichorizon.com. You can also follow Baltic Horizon Fund on www.baltichorizon.com and on LinkedIn, Facebook, X and YouTube.

    The MIL Network –

  • MIL-OSI United Kingdom: More support announced for residents accessing education and training

    Source: City of Coventry

    Our Skills, Employment and Adult Education Service has announced the continuation of the SEGRO Employment Access Fund.

    The Fund helps support residents who need education or training to help them find work. 

    Following a successful pilot of the Fund in 2024, SEGRO has confirmed its continued support throughout 2025.

    There are several funding streams available to support learning through the Adult Education Budget via the West Midlands Combined Authority and the Education & Skills Funding Agency, but the SEGRO Employment Access Fund helps offer financial support to Coventry residents who are not eligible for this funding.

    To date, a wide range of learning opportunities have been accessed including:

    • English for Speakers of Other languages (ESOL)
    • English (Functional Skills qualification)
    • Caring for a Child
    • Mathematics
    • Level 2 Certificate in Supporting Teaching and Learning in Schools

    The courses are provided by Coventry’s Adult Education Service across the city.

    Councillor Dr Kindy Sandhu, Cabinet Member for Education and Skills, said:

    “The SEGRO Employment Access Fund is a fantastic lifeline for people who are seeking employment but might have a barrier in the way of them becoming employed.

    “The support from SEGRO is vital to helping us make further progress in removing barriers to education and skills for a wide range of Coventry residents.”

    SEGRO is the owner, developer and manager of SEGRO Park Coventry, and is a long-term investor in the area, The Fund forms part of its Coventry Community Investment Plan, a long-term commitment to support the communities around its development. The SEGRO Employment Access Fund, set up in partnership between SEGRO and Coventry City Council’s Skills, Employment & Adult Education Service has already supported 50 Coventry residents in accessing activities and training that they would have otherwise been ineligible for.  

    Dan Holford, Head of National Markets at SEGRO, said:

    “We are proud to support the continuation of the SEGRO Employment Access Fund, which is making a real difference in helping Coventry residents access education and training opportunities. As long-term investors, we are committed to building thriving communities and investing in skills and employment is a key priority for us. By working together with Coventry City Council, we can help remove barriers to learning and empower more people to achieve their potential.”

    Agnieskza, who attended an English for Speakers of Other Languages (ESOL) course, said:

    “At first, I was scared to speak at work but now I’m trying more. I have more confidence. I think this course will help me find a better job. I was a shift manager at McDonalds in Poland and I would like to get a job in retail as my English language improves.”

    Sehresh, who attended a Level 2 Certificate in Supporting Teaching and Learning in Schools, said

    “I had good experience; I had all the help I needed to finish this course. My tutor was very helpful and encouraging. My biggest achievement was I got a job straight after finishing my course”. 

    Anyone who would like to find out more about the courses available can find information on the Council website: www.coventrys.gov.uk/adulted

    MIL OSI United Kingdom –

  • MIL-OSI: Stopping Cloud Attacks at the Source: Check Point Software Leads the Charge in Cloud Security, Championing a Prevention-First Approach

    Source: GlobeNewswire (MIL-OSI)

    BANGKOK, Feb. 18, 2025 (GLOBE NEWSWIRE) — CPX APAC– Check Point Software Technologies Ltd. (NASDAQ: CHKP), a pioneer and global leader of cyber security solutions, today announced that its Check Point CloudGuard solution has been recognized as a Leader across three key GigaOm Radar reports: Application & API Security, Cloud Network Security, and Cloud Workload Security. The reports highlight Check Point’s platform unification, prevention-first approach, and AI-powered threat prevention as key differentiators in the rapidly evolving cloud security landscape.

    Check Point: Leading the Future of Cloud Security
    In our interconnected world, managing and securing multiple cloud environments is a daunting task. Check Point CloudGuard provides automated, AI-powered protection, making cloud management easier while ensuring the safety of workloads, applications, and data. Howard Holton, Chief Operating Officer at GigaOm, stresses, “Cloud and API security is crucial for every organization in 2025.” He further highlights that, “Check Point’s Infinity platform, along with its extensive range of cloud protections, is vital for any organization looking to protect its assets.”

    “We’re proud to be recognized for our holistic approach to cloud security, combining cloud network security, workload protection, and posture management into a truly unified framework,” said Paul Barbosa, VP of Cloud Security at Check Point Software Technologies. “Our leadership across these categories validates our continued innovation as we drive forward one of the industry’s most comprehensive cloud security platforms.”

    AI-Enhanced WAF & API Security: Leading the Market in Advanced Threat Prevention
    GigaOm positioned Check Point as a Leader in Application & API Security, citing its innovative dual-layer AI approach that enhances detection and prevention capabilities. Key strengths include:

    • AI-driven vulnerability detection, delivering highly accurate threat identification with minimal false positives
    • Real-time threat detection and response, offering unmatched insight into security incidents by providing comprehensive logging and reporting
    • Data leak protection that automatically learns application schemas and enforces content rules while providing comprehensive DLP.

    Cloud Network Security: Real-Time, Dynamic Protection Across Multi-Cloud Environments
    Check Point CloudGuard earned recognition for its capability to gather and analyze data from all major cloud providers, enabling the implementation of adaptive security measures instantly. Other notable features include:

    • Extensive hybrid-cloud support, ensuring uniform security policies across both public and private clouds
    • Rapid innovation pipeline, with multiple major releases annually, ensuring the latest defenses against emerging cloud threats
    • Automated security policy adaptation, allowing security teams to respond to cloud environment changes without manual intervention

    Cloud Workload Security: Full-Stack Protection for Enterprise Cloud Environments
    In the Cloud Workload Security report, CloudGuard received recognition for its comprehensive security strategy. Check Point recently announced strategic partnership with Wiz, a top CNAPP (Cloud Native Application Protection Platform) provider, also highlighted as a Leader in this GigaOm report. This collaboration will allow Check Point and Wiz to leverage their combined strengths in the following areas:

    • Hybrid environment, support provides seamless security with a multilayered approach across physical, virtual, and cloud environments
    • Workload detection and response, to preemptively identify and mitigate attacks before they impact business operations
    • Automated configuration enforcement, ensuring security and compliance are embedded before workloads go live in cloud environments.

    For additional details about Check Point’s acknowledgment in GigaOm’s Radar reports and to obtain a free copy of the report, please visit the following links:

    GigaOm Radar for Web Application Firewall (WAF) & API Security
    GigaOm Radar for Cloud Network Security
    GigaOm Radar for Cloud Workload Security

    Follow Check Point via:
    LinkedIn: https://www.linkedin.com/company/check-point-software-technologies
    Twitter: https://www.twitter.com/checkpointsw
    Facebook: https://www.facebook.com/checkpointsoftware
    Blog: https://blog.checkpoint.com
    YouTube: https://www.youtube.com/user/CPGlobal

    About Check Point Software Technologies Ltd.
    Check Point Software Technologies Ltd. (www.checkpoint.com) is a leading AI-powered, cloud-delivered cyber security platform provider protecting over 100,000 organizations worldwide. Check Point leverages the power of AI everywhere to enhance cyber security efficiency and accuracy through its Infinity Platform, with industry-leading catch rates enabling proactive threat anticipation and smarter, faster response times. The comprehensive platform includes cloud-delivered technologies consisting of Check Point Harmony to secure the workspace, Check Point CloudGuard to secure the cloud, Check Point Quantum to secure the network, and Check Point Infinity Platform Services for collaborative security operations and services.

    Legal Notice Regarding Forward-Looking Statements
    This press release contains forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. Forward-looking statements in this press release include, but are not limited to, statements related to our expectations regarding future growth, the expansion of Check Point’s industry leadership, the enhancement of shareholder value and the delivery of an industry-leading cyber security platform to customers worldwide. Our expectations and beliefs regarding these matters may not materialize, and actual results or events in the future are subject to risks and uncertainties that could cause actual results or events to differ materially from those projected. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 20-F filed with the Securities and Exchange Commission on April 2, 2024. The forward-looking statements in this press release are based on information available to Check Point as of the date hereof, and Check Point disclaims any obligation to update any forward-looking statements, except as required by law.        

    The MIL Network –

  • MIL-OSI: Transocean Ltd. Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

     

      Three months ended         Three months ended      
      December 31,    September 30,      sequential   December 31,       year-over-year
      2024   2024   change   2023   change
    (In millions, except per share amounts, percentages and backlog)                            
    Contract drilling revenues $ 952     $ 948     $ 4     $ 741     $ 211  
    Adjusted contract drilling revenues $ 952     $ 948     $ 4     $ 748     $ 204  
    Revenue efficiency (1)   93.5 %     94.5 %           97.0 %      
    Operating and maintenance expense $ 579     $ 563     $ (16 )   $ 569     $ (10 )
    Net income (loss) attributable to controlling interest $ 7     $ (494 )   $ 501     $ (104 )   $ 111  
    Basic earnings (loss) per share $ 0.01     $ (0.56 )   $ 0.57     $ (0.13 )   $ 0.14  
    Diluted loss per share $ (0.11 )   $ (0.58 )   $ 0.47     $ (0.13 )   $ 0.02  
                                 
    Adjusted EBITDA $ 323     $ 342     $ (19 )   $ 122     $ 201  
    Adjusted EBITDA margin   33.9 %     36.0 %           16.3 %      
    Adjusted net income (loss) $ 27     $ 64     $ (37 )   $ (74 )   $ 101  
    Adjusted diluted earnings (loss) per share $ (0.09 )   $ —     $ (0.09 )   $ (0.09 )   $ —  
                                 
                                 
    Backlog as of the February 2025 Fleet Status Report $ 8.3 billion                      
                                 

    STEINHAUSEN, Switzerland, Feb. 17, 2025 (GLOBE NEWSWIRE) — Transocean Ltd. (NYSE: RIG) today reported net income attributable to controlling interest of $7 million, or loss of $0.11 per diluted share, for the three months ended December 31, 2024.

    Fourth quarter results included $20 million, $0.02 per diluted share, discrete tax items, net. After consideration of these unfavorable items, fourth quarter 2024 adjusted net income was $27 million, or loss of $0.09 per diluted share.

    Contract drilling revenues for the three months ended December 31, 2024, increased sequentially by $4 million to $952 million, primarily due to increased utilization for one rig that returned to work after undergoing a special periodic survey in the third quarter and higher reimbursement revenues, partially offset by lower revenue efficiency across the fleet.

    Operating and maintenance expense was $579 million, compared with $563 million in the prior quarter. The sequential increase was the result of higher in-service maintenance costs across our fleet, partially offset by a settlement with insurance carriers.

    General and administrative expense was $56 million, up from $47 million in the third quarter due primarily to increased legal and professional fees.

    Interest expense net of capitalized amounts was $152 million, compared to $154 million in the prior quarter, excluding the favorable adjustment of $61 million and $74 million in the fourth and third quarter, respectively, for the fair value of the bifurcated exchange feature related to the 4.625% exchangeable bonds. Interest income was $10 million, compared to $11 million in the prior quarter.

    The Effective Tax Rate(2) was 89.0%, up from 6.0% in the prior quarter. The increase was primarily due to higher income and increases in valuation allowance. The Effective Tax Rate excluding discrete items was 56.7% compared to 22.5% in the previous quarter.

    Cash provided by operating activities was $206 million during the fourth quarter of 2024, representing an increase of $12 million compared to the prior quarter. The sequential increase was primarily due to timing of interest payments and decreased payments for accounts payable, partially offset by reduced collections from customers.

    Fourth quarter 2024 capital expenditures of $29 million, compared to $58 million in the prior quarter, were related to capital upgrades for certain rigs in our fleet.

    “In 2024, we continued to advance our position as the technological leader in offshore drilling by, among other things, executing the first two 20K subsea completions in the history of the industry,” said Chief Executive Officer Jeremy Thigpen. “We also introduced and implemented other technologies that enhance our operational performances and further differentiate our fleet. This commitment to innovation, along with our reputation for delivering safe, reliable, and efficient operations, is clearly recognized by our customers, as demonstrated by the $2.4 billion in backlog we secured during the year.”

    Thigpen continued, “With industry-leading contract coverage well into 2026, our primary objective will be strong operational execution and an intense focus on cost control to ensure we maximize the conversion of our backlog to cash, enabling us to continue de-leveraging our balance sheet.”

    Full Year 2024

    For the year ended December 31, 2024, net loss attributable to controlling interest totaled $512 million, $0.76 per diluted share. Full year results included $458 million, $0.50 per diluted share, net unfavorable items as follows:

    • $755 million, $0.82 per diluted share, loss on impairment of assets; and
    • $5 million, $0.01 per diluted share, loss on impairment of our investments in unconsolidated affiliates; partially offset by,
    • $161 million, $0.18 per diluted share, gain on retirement of debt; and
    • $141 million, $0.15 per diluted share, related to discrete tax items, net.

    After consideration of these net unfavorable items, adjusted net loss for 2024 was $54 million, $0.26 per diluted share.

    Non-GAAP Financial Measures

    We present our operating results in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”). We believe certain financial measures, such as Adjusted Contract Drilling Revenues, EBITDA, Adjusted EBITDA and Adjusted Net Income, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our operating performance. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under U.S. GAAP, can be used to better assess our performance from period to period and relative to performance of other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with U.S. GAAP.

    All non-GAAP measure reconciliations to the most comparative U.S. GAAP measures are displayed in quantitative schedules on the company’s website at: www.deepwater.com.

    About Transocean

    Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on ultra-deepwater and harsh environment drilling services, and operates the highest specification floating offshore drilling fleet in the world.

    Transocean owns or has partial ownership interests in and operates a fleet of 34 mobile offshore drilling units, consisting of 26 ultra-deepwater floaters and eight harsh environment floaters.

    For more information about Transocean, please visit: www.deepwater.com.

    Conference Call Information

    Transocean will conduct a teleconference starting at 9 a.m. EST, 3 p.m. CET, on Tuesday, February 18, 2025, to discuss the results. To participate, dial +1 785-424-1116 and refer to conference code 540196 approximately 15 minutes prior to the scheduled start time.

    The teleconference will be simulcast in a listen-only mode at: www.deepwater.com, by selecting Investors, News, and Webcasts. Supplemental materials that may be referenced during the teleconference will be available at: www.deepwater.com, by selecting Investors, Financial Reports.

    A replay of the conference call will be available after 12 p.m. EST, 6 p.m. CET, on Tuesday, February 18, 2025. The replay, which will be archived for approximately 30 days, can be accessed at +1 402-220-1152, passcode 540196. The replay will also be available on the company’s website.

    Forward-Looking Statements

    The statements described herein that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements could contain words such as “possible,” “intend,” “will,” “if,” “expect,” or other similar expressions. Forward-looking statements are based on management’s current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company’s newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the fluctuation of current and future prices of oil and gas, the global and regional supply and demand for oil and gas, the intention to scrap certain drilling rigs, the success of our business following prior acquisitions, the effects of the spread of and mitigation efforts by governments, businesses and individuals related to contagious illnesses, and other factors, including those and other risks discussed in the company’s most recent Annual Report on Form 10-K for the year ended December 31, 2023, and in the company’s other filings with the SEC, which are available free of charge on the SEC’s website at: www.sec.gov. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law.

    This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of the Swiss Financial Services Act (“FinSA”) or advertising within the meaning of the FinSA. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.

    Notes

    (1) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations. See the accompanying schedule entitled “Revenue Efficiency.”
    (2) Effective Tax Rate is defined as income tax expense or benefit divided by income or loss before income taxes. See the accompanying schedule entitled “Supplemental Effective Tax Rate Analysis.”
       

    Analyst Contact:
    Alison Johnson
    +1 713-232-7214

    Media Contact:
    Pam Easton
    +1 713-232-7647

    TRANSOCEAN LTD. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
    (In millions, except per share data)
    (Unaudited)
                     
      Years ended December 31, 
      2024        2023        2022  
                     
    Contract drilling revenues $ 3,524     $ 2,832     $ 2,575  
                     
    Costs and expenses                
    Operating and maintenance   2,199       1,986       1,679  
    Depreciation and amortization   739       744       735  
    General and administrative   214       187       182  
        3,152       2,917       2,596  
                     
    Loss on impairment of assets   (772 )     (57 )     —  
    Loss on disposal of assets, net   (17 )     (183 )     (10 )
    Operating loss   (417 )     (325 )     (31 )
                     
    Other income (expense), net                
    Interest income   50       52       27  
    Interest expense, net of amounts capitalized   (362 )     (646 )     (561 )
    Gain (loss) on retirement of debt   161       (31 )     8  
    Other, net   45       9       (5 )
        (106 )     (616 )     (531 )
    Loss before income tax expense (benefit)   (523 )     (941 )     (562 )
    Income tax expense (benefit)   (11 )     13       59  
                     
    Net loss   (512 )     (954 )     (621 )
    Net income attributable to noncontrolling interest   —       —       —  
    Net loss attributable to controlling interest $ (512 )   $ (954 )   $ (621 )
                     
    Loss per share                
    Basic $ (0.60 )   $ (1.24 )   $ (0.89 )
    Diluted $ (0.76 )   $ (1.24 )   $ (0.89 )
                     
    Weighted-average shares outstanding                
    Basic   850       768       699  
    Diluted   925       768       699  
                           
    TRANSOCEAN LTD. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (In millions, except share data)
    (Unaudited)
               
      December 31, 
      2024        2023  
    Assets          
    Cash and cash equivalents $ 560     $ 762  
    Accounts receivable, net   564       512  
    Materials and supplies, net   439       426  
    Assets held for sale   343       49  
    Restricted cash and cash equivalents   381       233  
    Other current assets   165       144  
    Total current assets   2,452       2,126  
               
    Property and equipment   22,417       23,875  
    Less accumulated depreciation   (6,586 )     (6,934 )
    Property and equipment, net   15,831       16,941  
    Contract intangible assets   —       4  
    Deferred tax assets, net   45       44  
    Other assets   1,043       1,139  
    Total assets $ 19,371     $ 20,254  
               
    Liabilities and equity          
    Accounts payable $ 255     $ 323  
    Accrued income taxes   31       23  
    Debt due within one year   686       370  
    Other current liabilities   691       681  
    Total current liabilities   1,663       1,397  
               
    Long-term debt   6,195       7,043  
    Deferred tax liabilities, net   499       540  
    Other long-term liabilities   729       858  
    Total long-term liabilities   7,423       8,441  
               
    Commitments and contingencies          
               
    Shares, $0.10 par value, 1,057,879,029 authorized, 141,262,093 conditionally authorized, 940,828,901 issued          
    and 875,830,772 outstanding at December 31, 2024, and CHF 0.10 par value, 1,021,294,549 authorized,          
    142,362,093 conditionally authorized, 843,715,858 issued and 809,030,846 outstanding at December 31, 2023   87       81  
    Additional paid-in capital   14,880       14,544  
    Accumulated deficit   (4,545 )     (4,033 )
    Accumulated other comprehensive loss   (138 )     (177 )
    Total controlling interest shareholders’ equity   10,284       10,415  
    Noncontrolling interest   1       1  
    Total equity   10,285       10,416  
    Total liabilities and equity $ 19,371     $ 20,254  
    TRANSOCEAN LTD. AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In millions)
    (Unaudited)
                     
      Years ended December 31, 
      2024        2023        2022  
                     
    Cash flows from operating activities                
    Net loss $ (512 )   $ (954 )   $ (621 )
    Adjustments to reconcile to net cash provided by operating activities:                
    Amortization of contract intangible asset   4       52       117  
    Depreciation and amortization   739       744       735  
    Share-based compensation expense   47       40       29  
    Loss on impairment of assets   772       57       —  
    Loss on disposal of assets, net   17       183       10  
    Amortization of debt-related balances, net   53       51       33  
    (Gain) loss on adjustment to bifurcated compound exchange feature   (214 )     127       157  
    (Gain) loss on retirement of debt   (161 )     31       (8 )
    Loss on impairment of investment in unconsolidated affiliates   5       5       —  
    Deferred income tax expense   (42 )     18       46  
    Other, net   (7 )     43       44  
    Changes in deferred revenues, net   45       70       (20 )
    Changes in deferred costs, net   (2 )     (190 )     1  
    Changes in other operating assets and liabilities, net   (297 )     (113 )     (75 )
    Net cash provided by operating activities   447       164       448  
                     
    Cash flows from investing activities                
    Capital expenditures   (254 )     (427 )     (717 )
    Investment in loans to unconsolidated affiliates   (3 )     (3 )     (5 )
    Investment in equity of unconsolidated affiliates   —       (10 )     (42 )
    Proceeds from disposal of assets, net of costs to sell   101       10       7  
    Cash acquired in acquisition of unconsolidated affiliates   5       7       —  
    Net cash used in investing activities   (151 )     (423 )     (757 )
                     
    Cash flows from financing activities                
    Repayments of debt   (2,103 )     (1,717 )     (554 )
    Proceeds from issuance of debt, net of issue costs   1,770       1,983       175  
    Proceeds from issuance of shares, net of issue costs   —       —       263  
    Proceeds from issuance of warrants, net of issue costs   —       —       12  
    Other, net   (17 )     (3 )     (8 )
    Net cash provided by (used in) financing activities   (350 )     263       (112 )
                     
    Net increase (decrease) in unrestricted and restricted cash and cash equivalents   (54 )     4       (421 )
    Unrestricted and restricted cash and cash equivalents, beginning of period   995       991       1,412  
    Unrestricted and restricted cash and cash equivalents, end of period $ 941     $ 995     $ 991  
                                     
    TRANSOCEAN LTD. AND SUBSIDIARIES
    FLEET OPERATING STATISTICS
     
      Three months ended     Years ended  
      December 31,    September 30,   December 31,      December 31,    December 31,   
    Contract Drilling Revenues (in millions) 2024    2024    2023      2024    2023   
    Ultra-deepwater floaters $ 675   $ 668   $ 536     $ 2,518   $ 2,072  
    Harsh environment floaters   277     280     205       1,006     760  
    Total contract drilling revenues $ 952   $ 948   $ 741     $ 3,524   $ 2,832  
      Three months ended     Years ended  
      December 31,    September 30,   December 31,      December 31,    December 31,   
    Average Daily Revenue (1) 2024    2024    2023      2024    2023   
    Ultra-deepwater floaters $ 428,200   $ 426,700   $ 432,100     $ 428,000   $ 393,700  
    Harsh environment floaters   452,600     464,900     354,700       435,900     354,300  
    Total fleet average daily revenue $ 434,700   $ 436,800   $ 407,800     $ 430,100   $ 382,300  
      Three months ended     Years ended
      December 31,    September 30,   December 31,      December 31,    December 31, 
    Revenue Efficiency (2) 2024   2024   2023     2024    2023
    Ultra-deepwater floaters 92.0 %   92.5 %   96.8 %     93.4 %   96.5 %
    Harsh environment floaters 97.6 %   100.1 %   97.6 %     97.5 %   97.8 %
    Total fleet average revenue efficiency 93.5 %   94.5 %   97.0 %     94.5 %   96.8 %
      Three months ended     Years ended
      December 31,     September 30,    December 31,      December 31,     December 31, 
    Utilization (3) 2024   2024   2023     2024   2023
    Ultra-deepwater floaters 64.3 %   60.7 %   46.8 %     57.3 %   49.4 %
    Harsh environment floaters 75.0 %   75.0 %   66.7 %     71.1 %   59.1 %
    Total fleet average rig utilization 66.8 %   63.9 %   51.6 %     60.5 %   51.9 %
                                   
    (1) Average daily revenue is defined as operating revenues, excluding revenues for contract terminations, reimbursements and contract intangible amortization, earned per operating day. An operating day is defined as a day for which a rig is contracted to earn a dayrate during the firm contract period after operations commence.
                                   
    (2) Revenue efficiency is defined as actual operating revenues, excluding revenues for contract terminations and reimbursements, for the measurement period divided by the maximum revenue calculated for the measurement period, expressed as a percentage. Maximum revenue is defined as the greatest amount of contract drilling revenues the drilling unit could earn for the measurement period, excluding revenues for incentive provisions, reimbursements and contract terminations.
                                   
    (3) Rig utilization is defined as the total number of operating days divided by the total number of rig calendar days in the measurement period, expressed as a percentage.
     
                                             
    TRANSOCEAN LTD. AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    ADJUSTED NET INCOME (LOSS) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE
    (in millions, except per share data)
                                             
      YTD   QTD   YTD   QTD   YTD   QTD   YTD
      12/31/24   12/31/24   09/30/24   09/30/24   06/30/24   06/30/24    03/31/24
    Adjusted Net Income (Loss)                                        
    Net income (loss) attributable to controlling interest, as reported $ (512 )   $ 7     $ (519 )   $ (494 )   $ (25 )   $ (123 )   $ 98  
    Loss on impairment of assets, net of tax   755       —       755       617       138       138       —  
    Loss on impairment of investment in unconsolidated affiliates   5       —       5       —       5       4       1  
    Gain on retirement of debt   (161 )     —       (161 )     (21 )     (140 )     (140 )     —  
    Discrete tax items   (141 )     20       (161 )     (38 )     (123 )     (2 )     (121 )
    Net income (loss), as adjusted $ (54 )   $ 27     $ (81 )   $ 64     $ (145 )   $ (123 )   $ (22 )
                                             
    Adjusted Diluted Earnings (Loss) Per Share:                                        
    Diluted earnings (loss) per share, as reported $ (0.76 )   $ (0.11 )   $ (0.65 )   $ (0.58 )   $ (0.03 )   $ (0.15 )   $ 0.11  
    Loss on impairment of assets, net of tax   0.82       —       0.82       0.64       0.17       0.17       —  
    Loss on impairment of investment in unconsolidated affiliates   0.01       —       0.01       —       —       —       —  
    Gain on retirement of debt   (0.18 )     —       (0.18 )     (0.02 )     (0.17 )     (0.17 )     —  
    Discrete tax items   (0.15 )     0.02       (0.18 )     (0.04 )     (0.15 )     —       (0.14 )
    Diluted earnings (loss) per share, as adjusted $ (0.26 )   $ (0.09 )   $ (0.18 )   $ —     $ (0.18 )   $ (0.15 )   $ (0.03 )
                                             
      YTD   QTD   YTD   QTD   YTD   QTD   YTD
      12/31/23     12/31/23    09/30/23     09/30/23    06/30/23    06/30/23    03/31/23
    Adjusted Net Loss                                        
    Net loss attributable to controlling interest, as reported $ (954 )   $ (104 )   $ (850 )   $ (220 )   $ (630 )   $ (165 )   $ (465 )
    Loss on impairment of assets   57       (1 )     58       5       53       53       —  
    Loss on disposal of assets, net   169       —       169       —       169       —       169  
    Loss on impairment of investment in unconsolidated affiliate   5       5       —       —       —       —       —  
    Loss on conversion of debt to equity   27       24       3       —       3       3       —  
    (Gain) loss on retirement of debt   31       (1 )     32       —       32       —       32  
    Discrete tax items   (74 )     3       (77 )     (65 )     (12 )     (1 )     (11 )
    Net loss, as adjusted $ (739 )   $ (74 )   $ (665 )   $ (280 )   $ (385 )   $ (110 )   $ (275 )
                                             
    Adjusted Diluted Loss Per Share:                                        
    Diluted loss per share, as reported $ (1.24 )   $ (0.13 )   $ (1.13 )   $ (0.28 )   $ (0.85 )   $ (0.22 )   $ (0.64 )
    Loss on impairment of assets   0.07       —       0.08       0.01       0.07       0.07       —  
    Loss on disposal of assets, net   0.22       —       0.23       —       0.23       —       0.23  
    Loss on impairment of investment in unconsolidated affiliate   0.01       0.01       —       —       —       —       —  
    Loss on conversion of debt to equity   0.04       0.03       —       —       —       —       —  
    (Gain) loss on retirement of debt   0.04       —       0.04       —       0.04       —       0.04  
    Discrete tax items   (0.10 )     —       (0.10 )     (0.09 )     (0.01 )     —       (0.01 )
    Diluted loss per share, as adjusted $ (0.96 )   $ (0.09 )   $ (0.88 )   $ (0.36 )   $ (0.52 )   $ (0.15 )   $ (0.38 )
                                               
    TRANSOCEAN LTD. AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    ADJUSTED CONTRACT DRILLING REVENUES
    EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND RELATED MARGINS
    (in millions, except percentages)
                                               
                                               
        YTD   QTD   YTD   QTD   YTD   QTD   YTD
         12/31/24   12/31/24   09/30/24   09/30/24   06/30/24   06/30/24   03/31/24
                                               
    Contract drilling revenues   $ 3,524     $ 952   $ 2,572     $ 948     $ 1,624     $ 861     $ 763  
    Contract intangible asset amortization     4       —     4       —       4       —       4  
    Adjusted Contract Drilling Revenues   $ 3,528     $ 952   $ 2,576     $ 948     $ 1,628     $ 861     $ 767  
                                               
    Net income (loss)   $ (512 )   $ 7   $ (519 )   $ (494 )   $ (25 )   $ (123 )   $ 98  
    Interest expense, net of interest income     312       81     231       69       162       60       102  
    Income tax expense (benefit)     (11 )     55     (66 )     (31 )     (35 )     156       (191 )
    Depreciation and amortization     739       180     559       190       369       184       185  
    Contract intangible asset amortization     4       —     4       —       4       —       4  
    EBITDA     532       323     209       (266 )     475       277       198  
                                               
    Loss on impairment of assets     772       —     772       629       143       143       —  
    Loss on impairment of investment in unconsolidated affiliates     5       —     5       —       5       4       1  
    Gain on retirement of debt     (161 )     —     (161 )     (21 )     (140 )     (140 )     —  
    Adjusted EBITDA   $ 1,148     $ 323   $ 825     $ 342     $ 483     $ 284     $ 199  
                                               
                                               
    Profit (loss) margin     (14.5 ) %   0.7 %   (20.2 ) %   (52.0 ) %   (1.5 ) %   (14.3 ) %   12.9 %
    EBITDA margin     15.1   %   33.9 %   8.1   %   (28.1 ) %   29.2   %   32.2   %   25.8 %
    Adjusted EBITDA margin     32.5   %   33.9 %   32.0   %   36.0   %   29.7   %   33.0   %   26.0 %
                                             
      YTD   QTD   YTD   QTD   YTD   QTD   YTD
      12/31/23   12/31/23   09/30/23   09/30/23   06/30/23   06/30/23   03/31/23
                                             
    Contract drilling revenues $ 2,832     $ 741     $ 2,091     $ 713     $ 1,378     $ 729     $ 649  
    Contract intangible asset amortization   52       7       45       8       37       19       18  
    Adjusted Contract Drilling Revenues $ 2,884     $ 748     $ 2,136     $ 721     $ 1,415     $ 748     $ 667  
                                             
    Net loss $ (954 )   $ (104 )   $ (850 )   $ (220 )   $ (630 )   $ (165 )   $ (465 )
    Interest expense, net of interest income   594       (13 )     607       220       387       157       230  
    Income tax expense (benefit)   13       21       (8 )     (43 )     35       (16 )     51  
    Depreciation and amortization   744       184       560       192       368       186       182  
    Contract intangible asset amortization   52       7       45       8       37       19       18  
    EBITDA   449       95       354       157       197       181       16  
                                             
    Loss on impairment of assets   57       (1 )     58       5       53       53       —  
    Loss on disposal of assets, net   169       —       169       —       169       —       169  
    Loss on impairment of investment in unconsolidated affiliate   5       5       —       —       —       —       —  
    Loss on conversion of debt to equity   27       24       3       —       3       3       —  
    (Gain) loss on retirement of debt   31       (1 )     32       —       32       —       32  
    Adjusted EBITDA $ 738     $ 122     $ 616     $ 162     $ 454     $ 237     $ 217  
                                             
                                             
    Loss margin   (33.7 ) %   (14.0 ) %   (40.7 ) %   (30.9 ) %   (45.7 ) %   (22.6 ) %   (71.6 )%
    EBITDA margin   15.6   %   12.7   %   16.6   %   21.8   %   13.9   %   24.2   %   2.4 %
    Adjusted EBITDA margin   25.6   %   16.3   %   28.9   %   22.5   %   32.1   %   31.7   %   32.5 %
                                             
    TRANSOCEAN LTD. AND SUBSIDIARIES
    SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
    (in millions, except tax rates)
                                 
      Three months ended   Years ended
      December 31,       September 30,      December 31,    December 31,    December 31, 
      2024        2024        2023     2024     2023  
                                 
    Income (loss) before income taxes $ 62     $ (525 )   $ (83 )   $ (523 )   $ (941 )
    Loss on impairment of assets   —       629       (1 )     772       57  
    Loss on disposal of assets, net   —       —       —       —       169  
    Loss on impairment of investment in unconsolidated affiliates   —       —       5       5       5  
    Loss on conversion of debt to equity   —       —       24       —       27  
    (Gain) loss on retirement of debt   —       (21 )     (1 )     (161 )     31  
    Adjusted income (loss) before income taxes $ 62     $ 83     $ (56 )   $ 93     $ (652 )
                                 
                                 
    Income tax expense (benefit) $ 55     $ (31 )   $ 21     $ (11 )   $ 13  
    Loss on impairment of assets   —       12       —       17       —  
    Loss on disposal of assets, net   —       —       —       —       —  
    Loss on impairment of investment in unconsolidated affiliates   —       —       —       —       —  
    Loss on conversion of debt to equity   —       —       —       —       —  
    (Gain) loss on retirement of debt   —       —       —       —       —  
    Changes in estimates (1)   (20 )     38       (3 )     141       74  
    Adjusted income tax expense (benefit) $ 35     $ 19     $ 18     $ 147     $ 87  
                                 
    Effective Tax Rate (2)   89.0 %      6.0 %      (25.0 )%      2.2 %      (1.4 )%
                                 
    Effective Tax Rate, excluding discrete items (3)   56.7 %      22.5 %      (30.0 )%      159.1 %      (13.3 )%
                                 
                                 
    (1) Our estimates change as we file tax returns, settle disputes with tax authorities, or become aware of changes in laws, operational changes and rig movements that have an effect on our (a) deferred taxes, (b) valuation allowances on deferred taxes and (c) other tax liabilities.
                                 
    (2) Our effective tax rate is calculated as income tax expense or benefit divided by income or loss before income taxes.
                                 
    (3) Our effective tax rate, excluding discrete items, is calculated as income tax expense or benefit, excluding various discrete items (such as changes in estimates and tax on items excluded from income before income taxes), divided by income or loss before income taxes, excluding gains and losses on sales and similar items pursuant to the accounting standards for income taxes related to estimating the annual effective tax rate.
                                             
    TRANSOCEAN LTD. AND SUBSIDIARIES
    NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS
    FREE CASH FLOW AND LEVERED FREE CASH FLOW
    (in millions)
                                             
      YTD   QTD   YTD   QTD   YTD   QTD   YTD
      12/31/24   12/31/24   09/30/24   09/30/24   06/30/24   06/30/24   03/31/24
                                             
    Cash provided by (used in) operating activities $ 447     $ 206     $ 241     $ 194     $ 47     $ 133     $ (86 )
    Capital expenditures   (254 )     (29 )     (225 )     (58 )     (167 )     (84 )     (83 )
    Free Cash Flow   193       177       16       136       (120 )     49       (169 )
    Debt repayments   (2,103 )     (30 )     (2,073 )     (258 )     (1,815 )     (1,664 )     (151 )
    Debt repayments, paid from debt proceeds   1,748       –       1,748       99       1,649       1,649       –  
    Levered Free Cash Flow $ (162 )   $ 147     $ (309 )   $ (23 )   $ (286 )   $ 34     $ (320 )
                                             
                                             
                                             
      YTD   QTD   YTD   QTD   YTD   QTD   YTD
      12/31/23   12/31/23   09/30/23   09/30/23   06/30/23   06/30/23   03/31/23
                                             
    Cash provided by (used in) operating activities $ 164     $ 98     $ 66     $ (44 )   $ 110     $ 157     $ (47 )
    Capital expenditures   (427 )     (220 )     (207 )     (50 )     (157 )     (76 )     (81 )
    Free Cash Flow   (263 )     (122 )     (141 )     (94 )     (47 )     81       (128 )
    Debt repayments   (1,717 )     (10 )     (1,707 )     (139 )     (1,568 )     (4 )     (1,564 )
    Debt repayments, paid from debt proceeds   1,156       –       1,156       –       1,156       –       1,156  
    Levered Free Cash Flow $ (824 )   $ (132 )   $ (692 )   $ (233 )   $ (459 )   $ 77     $ (536 )
                                             
                                             
                                             
      YTD   QTD   YTD   QTD   YTD   QTD   YTD
      12/31/22   12/31/22   09/30/22   09/30/22   06/30/22   06/30/22   03/31/22
                                             
    Cash provided by (used in) operating activities $ 448     $ 178     $ 270     $ 230     $ 40     $ 41     $ (1 )
    Capital expenditures   (717 )     (409 )     (308 )     (87 )     (221 )     (115 )     (106 )
    Free Cash Flow   (269 )     (231 )     (38 )     143       (181 )     (74 )     (107 )
    Debt repayments   (554 )     (101 )     (453 )     (196 )     (257 )     (92 )     (165 )
    Debt repayments, paid from debt proceeds   –       –       –       –       –       –       –  
    Levered Free Cash Flow $ (823 )   $ (332 )   $ (491 )   $ (53 )   $ (438 )   $ (166 )   $ (272 )

    The MIL Network –

  • MIL-OSI: Change in the composition of Capgemini’s Board of Directors proposed to the 2025 Shareholders’ Meeting

    Source: GlobeNewswire (MIL-OSI)

    Media relations:
    Victoire Grux
    Tel.: +33 6 04 52 16 55
    victoire.grux@capgemini.com

    Investor relations:
    Vincent Biraud
    Tel.: +33 1 47 54 50 87
    vincent.biraud@capgemini.com

    Change in the composition of Capgemini’s Board of Directors
    proposed to the 2025 Shareholders’ Meeting

    Paris, February 17, 2025 – The Board of Directors of Capgemini SE, meeting on February 17, 2025, deliberated, based on the report of the Ethics & Governance Committee, on the change in its composition to be proposed to the next Shareholders’ Meeting of May 7, 2025.

    The Board of Directors decided to propose to the 2025 Shareholders’ Meeting, i) the renewal of the terms of office of Messrs. Patrick Pouyanné and Kurt Sievers and ii) the appointment of Mr. Jean-Marc Chéry as member of the Board of Directors, for a term of four years. This proposal is in line with the Board’s ambition to enrich the diversity of its profiles and deepen its industry expertise.

    Mr. Jean-Marc Chéry, a French national, is the President and Chief Executive Officer of STMicroelectronics, a global semiconductor company at the heart of the Intelligent Industry, committed to manufacturing sustainable technologies and offering its customers innovative solutions. He would also bring to the Board his expertise in technology, artificial intelligence, and industry knowledge, particularly in the automotive and energy sectors.

    The Board considers Mr. Jean-Marc Chéry to be independent pursuant to the criteria of the AFEP-MEDEF Code to which the Company refers.

    Assuming the adoption of these resolutions by the Shareholders’ Meeting of May 7, 2025, the composition of the Board of Directors would therefore count 15 directors, including two directors representing employees and one director representing employee shareholders. 83% of its members would be independent1, 40% would have international profiles and 42% would be women1.

    BIOGRAPHY
    Mr. Jean-Marc Chéry

    Mr. Jean-Marc Chéry is STMicroelectronics’ (ST) President of the Managing Board and Chief Executive Officer and has held this position since May 2018.

    Mr. Jean-Marc Chéry is a graduate of the École Nationale Supérieure d’Arts et Métiers (ENSAM) in Paris.

    He began his career in the Quality department of Matra, the French engineering group. In 1986, he joined Thomson Semiconducteurs, which subsequently became ST, and held various management positions in product planning and manufacturing, rising to lead ST’s silicon wafer manufacturing plant in Tours, France, and later in Rousset, France. In 2005, Mr. Chéry successfully led the company-wide 6-inch wafer-manufacturing restructuring program before taking charge of ST’s Front-End Manufacturing operations in Asia Pacific. In 2008, he was promoted to Chief Technology Officer and assumed additional responsibilities for Manufacturing and Quality (2011) and the Digital Product sector (2012). In 2014, he was appointed ST’s Chief Operating Officer responsible for Technology and Manufacturing operations. In July 2017, Mr. Chéry was appointed Deputy CEO with overall responsibility for Technology and Manufacturing, as well as for Sales and Marketing operations.

    He has sat on the Board of Directors of Legrand since 2021 and has chaired its Commitment & CSR Committee since 2023. He is also a member of France Industrie. He has been chair of the Board of Directors at the Global Semiconductor Alliance (GSA) since December 2024. He has served as Chairman of the France – Malaysia Business Council at Medef International since 2018.

    About Capgemini
    Capgemini is a global business and technology transformation partner, helping organizations to accelerate their dual transition to a digital and sustainable world, while creating tangible impact for enterprises and society. It is a responsible and diverse group of 340,000 team members in more than 50 countries. With its strong over 55-year heritage, Capgemini is trusted by its clients to unlock the value of technology to address the entire breadth of their business needs. It delivers end-to-end services and solutions leveraging strengths from strategy and design to engineering, all fueled by its market leading capabilities in AI, cloud and data, combined with its deep industry expertise and partner ecosystem. The Group reported 2023 global revenues of €22.5 billion.
    Get The Future You Want | www.capgemini.com

    1         The Directors representing employees and employee shareholders are not taken into account in calculating this percentage, in accordance with the provisions of the AFEP-MEDEF Code and the French Commercial Code.

    Attachment

    The MIL Network –

  • MIL-OSI: Baltic Horizon Fund consolidated unaudited results for Q1-Q4 2024

    Source: GlobeNewswire (MIL-OSI)

    Management Board of Northern Horizon Capital AS has approved the unaudited financial results of Baltic Horizon Fund (the Fund) for the twelve months of 2024.

    Our strategic ambitions
    In 2024, the Fund’s management team made the strategic decision to implement key performance indicators (KPIs) as a means to effectively measure and track performance. This decision stems from the recognition that clear and measurable benchmarks are essential for evaluating progress towards the Fund’s objectives. By defining specific KPIs, the team aims to enhance transparency, accountability, and facilitate decision-making processes.

    The focus of the Fund management team is and will be on these major objectives:

    • Portfolio occupancy of at least 95% by end of June 2025;
    • Loan-to-Value target at 50% or lower;
    • To consider disposing of non-strategic assets over the next 18 months;
    • Clear ESG and refurbishment strategy for the next 1-2 years with an aim to reach the portfolio’s NOI potential of EUR 18 million by 2027;
    • Maintaining 100% BREEAM or LEED certified portfolio;
    • Achieving not less than 4 stars from GRESB assessment.

    As we recap our goals for 2024, we can report the following achievements:

    We have successfully achieved 100% portfolio certification.

    Despite receiving a 3-star GRESB rating in 2024, we have thoroughly analysed the assessment results and developed an action plan to secure a 4-star GRESB rating in 2025.

    Although we did not reach our target of 90% portfolio occupancy by the end of 2024, we made significant progress, achieving an 86.5% occupancy rate based on lease signing date.

    We have recently announced our disposal strategy to reduce LTV level to the target level. Several disposal processes have already commenced as of February 2025, with the closing of transactions planned for later in the year.

    Looking ahead to 2025, we will continue with the same solid strategy and goals that will stabilize the Fund’s financial position and maximize the potential of its portfolio.

    Leasing performance

    In a challenging environment characterized by increasing real estate market vacancies across all Baltic states in recent periods, the Fund also faced outflows of some tenants, however it has demonstrated its adaptability and the attractiveness of its properties by renewing a significant amount of existing leases and signing a substantial number of new leases in 2024. This success was primarily attributable to significant deals with prominent anchor tenants such as Narbutas in Meraki (3,200 sq. m) and Apollo Group in Coca-Cola Plaza (2,200 sq. m), International School of Riga in S27 (3,680 sq. m) and significant leases in Galerija Centrs  signed with My Fitness (2,000 sq. m) and Expo GROUP (2,000 sq. m).

    The Fund team has been diligently negotiating with current tenants to extend lease agreements, while also actively engaging with new tenants to fill the vacancies.  These efforts have resulted in lease renewals of approximately 23,800 sq. m and a net lease inflow of approximately 4,800 sq. m

    During 2024, the Fund signed new leases for 22,743 sq. m, securing an annual rental income of EUR 2,945 thousand for future periods. Furthermore, 61 new tenants have been attracted to our buildings, while 69 existing tenants have decided to continue their cooperation with us.

    By the end of December 2024, the occupancy of the portfolio increased to 82.1%. Calculating based on the lease signing date, the occupancy already exceeds 86%. Signed premises will be handed over to tenants in 2025.

    Notably, less than 20% of the leases are set to expire during 2025, while the vast majority expire in 2026 and later. We aim to spread our lease terms evenly so that no more than 20% of our leases expire each year.  Recent successful leasing activity is reflected in the increase in the weighted average unexpired lease term until the first break option, which was 3.3 years as of 31 December 2024 (compared to 2.9 years as of 31 December 2023).

    Outlook
    In 2025 the Fund will focus on flexible and sustainable solutions to meet tenant demands and market conditions.

    Our key goals are increasing the occupancy of the portfolio and decreasing the LTV by way of repaying part of the bonds.

    In 2025, the Baltic commercial real estate market is anticipated to navigate both considerable challenges and emerging opportunities. Persisting economic uncertainty is expected to keep demand for commercial spaces subdued. Key factors influencing this trend include evolving consumer preferences, the continued expansion of e-commerce, and the sustained shift toward remote work, all of which are reshaping the need for office and retail properties.

    While economic forecasts cautiously suggest potential market stabilization in the coming year, a rapid recovery remains unlikely due to geopolitical uncertainties and evolving tenant and consumer needs. Recognizing these challenges, the Fund’s management strives to enhance financial stability by reducing leverage through partial bond repayment. This strategy aims to alleviate financial pressure, positioning the Fund for more sustainable financial performance.

    As part of this initiative, the Fund has announced a strategic plan to divest select assets, with the objective of reducing the LTV ratio to below 50% and fostering a more stable recovery. Up to three assets have been identified for potential disposal based on their life cycle, optimization potential, and alignment with the Fund’s long-term strategy. Among these, the Postimaja and CC Plaza complex in Tallinn has been introduced to the market, following the Fund’s successful achievement of 100% occupancy and WALT exceeding five years. Given limited opportunities for further value enhancement beyond its development potential—an avenue the Fund does not intend to pursue in the short term—the asset has been prioritized for sale. To facilitate the divestment process, the Fund has engaged Newsec Advisers UAB and Redgate Capital AS as financial advisors. The sales process was commenced in February, with the aim of closing later in the year.

    As of the date of release of this report, the Fund has a Letter of Intent (LOI) with a potential buyer and DD is in progress with Meraki property. According to LOI, the transaction would be finalized in spring 2025. At the end of 2024, the property had an occupancy of 86% and WAULT of 4.3 years. Due to anticipated vacancies in the office sector and an increasing supply, the Fund has decided not to proceed with the development of a second tower, for which the permit remains valid. The current market conditions, characterized by recovering investor activity, present an improved opportunity to sell the property. Potential buyers have also shown preliminary interest in Lincona and Pirita Center.

    If the divestment plan proceeds as anticipated, the Fund will be positioned to repay a significant portion of its bonds while continuing to invest in its remaining property portfolio. This will enable the Fund to concentrate on its core assets in alignment with its strategic objectives, providing a solid foundation for future growth.

    To achieve our goal of increasing portfolio occupancy, we are adapting to the evolving needs of our tenants and customers. The rise of e-commerce and online shopping has transformed the traditional concept of shopping centres. Visitors now seek not only to try on and purchase goods but also to enjoy entertainment and experiences.

    This trend is evident in the success of our food courts, such as Burzma and Dialogai, as well as the interactive exhibition Kosmopark, which attracted a significant number of visitors in Europa and now operates in Galerija Centrs. Following this success, we have signed a new 3-year lease with an entertainment operator to open a Danger Park on the second floor of Europa shopping centre in May 2025. We are also considering various entertainment concepts for Galerija Centrs. Additionally, we will continue to offer the community a variety of events and temporary pop-ups in both shopping centres.

    In line with our strategic goal to increase occupancy, we are reviewing the concept in Europa and seeking the best tenant mix. We are currently negotiating a lease with a 700 sq m. anchor fashion leader and have advanced discussions with several coworking operators who find the shopping centre and its location ideal for their concept, one of them has already signed a LOI for 1,300 sq m. We believe that the combination of entertainment and a wide range of catering options, which will expand from the food court to a newly planned restaurant zone on the first floor facing Konstitucijos Avenue, along with strategic changes to the tenant mix on the second and third floors, will maximize visitor flow and fully exploit the potential of the shopping centre.

    While the traditional shopping centre concept remains effective for Galerija, as evidenced by increasing foot flow and turnover, we are exploring additional concepts for currently vacant premises to complement our existing tenants and expand the range of services offered to visitors.

    Office tenants are currently looking not just for a place to work during the day, but rather for hybrid working spaces or built-to-suit solutions with increased expectation over ESG, workplace wellbeing features and easily reachable services, which become increasingly important. During the last year, we witnessed a higher demand for mixed-use projects that combine commercial spaces with services, including catering, medical clinics and fitness centres. We believe, that in the upcoming years demand for such concepts will grow further and will add value to the properties.

    We continue to adapt to market demands by diversifying our office tenant mix beyond traditional occupiers, integrating catering operators, medical clinics, and even kindergartens into our office buildings. This approach not only enhances tenant diversification but also meets the needs of both our customers and the surrounding communities.

    In the office sector, our primary challenge and focus in 2025 will be addressing the remaining vacancies in S27 and Upmalas. A significant milestone in 2024 was securing a lease agreement for approximately 3,680 sq. m. in S27 with the International School of Riga, a leading provider of international education serving students from preschool through high school, set to open at the end of 2025. Even in the current market conditions we are confident that the International School of Riga coming into the building together with the renovation and improvements that are being done will enable us to attract new tenant segments that recognise the value of synergy.

    Our commitment to supporting existing and prospective tenants, along with our ability to tailor office spaces to individual requirements, positions us well to lease the remaining areas in North Star and Meraki in the coming quarters.

     Our investments in green energy projects remain a key priority, and from Q1 2025, all our properties in Latvia and Lithuania will transition to using energy from remote solar panels. In Estonia, we are actively exploring solutions in our properties to reduce the reliance to gas. Additionally, we are evaluating new technologies and sustainability initiatives that align with our ESG strategy while enhancing energy efficiency, optimizing property performance, and reducing operational costs.

    Simultaneously, to reinforce its financial position, the Fund is committed to improving its debt service ratio and reducing loan-to-value levels. By focusing on increasing occupancy rates and optimizing property concepts, we aim to enhance asset performance and maximize net operating income. Adaptive leasing strategies, property repositioning, and targeted investments in high-demand segments will remain key priorities. These initiatives are designed to create long-term value for investors while ensuring the Fund remains resilient in a dynamic market environment.

    Baltic Horizon achieves a 100% BREEAM certified portfolio
    In 2025, we will continue advancing our social and environmental commitments. All our assets have been BREEAM-certified, and by the end of 2024, we achieved 98% green leases across our portfolio, with a target to further increase this share in the coming year.

    GRESB benchmarking
    Recently, we announced a 3-star GRESB rating of 80 points, falling 1.5 points short of the 4-star threshold. This decline, compared to previous years, reflects increasing industry-wide commitments, heightened requirements, and evolving best practices. The management team has conducted a thorough analysis of the assessment results and developed an action plan aimed at restoring the Fund’s 4-star rating in 2025.

    Net result and net rental income
    In 2024, the Group recorded a net loss of EUR 16.8 million compared with a net loss of EUR 23.0 million for 2023. The result was mainly driven by the property valuation loss. Earnings per unit for 2024 were negative at EUR 0.13 (2023: negative at EUR 0.19).

    The Group earned consolidated net rental income of EUR 11.6 million in 2024 (2023: 14.6 million). The results for 2023 include two months’ net rental income of the Domus Pro Retail and Office property (EUR 0.3 million) and five months’ net rental income of the Duetto properties (EUR 1.2 million), which were sold in February and May 2023, respectively.

    On an EPRA like-for-like basis, the portfolio net rental income in 2024 was 11.8% lower than in 2023, mainly due to vacancies in office properties in Latvia due to the expiry of the agreement with the main tenant in Upmalas Biroji BC and 100% vacancy of S27, as well as lower rental income in Europa due to the new anchor tenant IKI equipping the premises and opening in March.

    Portfolio properties in the retail segment contributed 53.3% (like-for-like 2023: 43.6%) of net rental income in 2024, followed by the office segment with 41.7% (like-for-like 2023: 50.9%) and the leisure segment with 5.0% (2023: 5.5%). 
    Retail assets located in the central business districts (Postimaja, Europa and Galerija Centrs) accounted for 42.2% of total portfolio net rental income in 2024. Total net rental income attributable to neighbourhood shopping centres was 11.1% in 2024.

    In 2024, investment properties in Latvia and Lithuania contributed 44.4% (like-for-like 2023: 41.8%) and 22.8% (like-for-like 2023: 31.1%) of net rental income, respectively, while investment properties in Estonia contributed 32.8% (like-for-like 2023: 27.1%).

    Investment properties
    At the end of Q4 2024, the Baltic Horizon Fund portfolio consisted of 12 cash flow generating investment properties in the Baltic capitals. The fair value of the Fund’s portfolio was EUR 241.2 million at the end of December 2024 (31 December 2023: EUR 250.4 million) and incorporated a total net leasable area of 118.3 thousand sq. m. The change in portfolio value was mainly driven by the changes in exit yields and upward adjustments of the weighted average cost of capital (WACC). During 2024 the Group invested approximately EUR 6.0 million in tenant fit-outs.

    Gross Asset Value (GAV)
    As of 31 December 2024, the Fund’s GAV was EUR 256.0 million (31 December 2023: EUR 261.1 million). The decrease compared to the prior year was mainly related to the negative revaluation of the Fund’s investment properties of approx. EUR 9.5 million and was partly offset by the private placement of new units which took place in September and resulted in a cash increase of approx. EUR 6.29 million.

    Net Asset Value (NAV)
    As of 31 December 2024, the Fund’s NAV was EUR 98.1 million (31 December 2023: EUR 109.5 million). The NAV decrease was mainly due to the revaluation of investment properties. At the end of September 2024 new units were issued resulting in approx. EUR 6.29 million of new equity. As of 31 December 2024, IFRS NAV per unit amounted to EUR 0.6833 (31 December 2023: EUR 0.9156), while EPRA net tangible assets and EPRA net reinstatement value were EUR 0.7267 per unit (31 December 2023: EUR 0.9546). EPRA net disposal value was EUR 0.6797 per unit (31 December 2023: EUR 0.9122).

    Interest-bearing loans and bonds
    As of 31 December 2024, interest-bearing loans and bonds (excluding lease liabilities) were EUR 149.0 million (31 December 2023: EUR 143.5 million). Annual loan amortisation accounted for 1.5% of total debt outstanding. In July 2024, the Fund successfully signed the Meraki loan with Bigbank for a total amount of EUR 10.3 million. A major part of the loan was used to repay short term bonds in the amount of EUR 8.0 million maturing in July 2024.

    As of 31 December 2024, the Fund’s consolidated cash and cash equivalents amounted to EUR 10.1 million (31 December 2023: EUR 6.2 million).

    Cash flow
    Cash inflow from core operating activities in 2024 amounted to EUR 9.9 million (2023: cash inflow of EUR 11.4 million).  Cash inflow from core operating activities decreased mainly due to the sale of Duetto and Domus Pro properties in H1 2023 and higher vacancies, mostly in S27 and Upmalas Biroji. Cash outflow from investing activities was EUR 7.0 million due to investments in existing properties and transaction costs (2023: cash inflow of EUR 19.9 million due to sales of assets). Cash inflow from financing activities was EUR 1.0 million (2023: cash outflow of EUR 30.5 million). In Q4 2024, the Fund prepaid loans in the amount of EUR 2.7 million and paid regular amortisation and interest on bank loans and bonds.

    Key earnings figures 

    EUR ‘000 Q1-Q4 2024 Q1-Q4 2023 Change (%)
    Net rental income 11,588 14,617 (20.7%)
    Administrative expenses (2,373) (2,617) (9.3%)
    Net other operating income 18 44 (59.1%)
    Losses on disposal of investment properties (863) (4,047) (78.7%)
    Valuation gains (losses) on investment properties (15,581) (21,876) (28.8%)
    Operating profit (loss) (7,211) (13,879) (48.0%)
    Net financial expenses (10,344) (9,750) 6.1%
    Profit (loss) before tax (17,555) (23,629) (25.7%)
    Income tax 774 656 18.0%
    Net profit (loss) for the period (16,781) (22,973) (27.0%)
           
    Weighted average number of units outstanding (units) 143,562,514 119,635,429 20.0%
    Earnings per unit (EUR) (0.12) (0.19) (39.1%)

    Key financial position figures

    EUR ‘000 31.12.2024 31.12.2023 Change (%)
    Investment properties 241,158 250,385 (3.7%)
    Gross asset value (GAV) 256,048 261,138 (1.9%)
           
    Interest-bearing loans and bonds 148,989 143,487 3.8%
    Total liabilities 157,953 151,606 4.2%
           
    IFRS NAV 98,095 109,532 (10.4%)
    EPRA NRV 104,333 114,205 (8.6%)
           
    Number of units outstanding (units) 143,562,514 119,635,429 20.0%
    IFRS NAV per unit (EUR) 0.6833 0.9156 (25.4%)
    EPRA NRV per unit (EUR) 0.7267 0.9546 (23.9%)
           
    Loan-to-Value ratio (%) 61.8% 57.3% –
    Average effective interest rate (%) 6.7% 5.2% –

    During Q4 2024, the average actual occupancy of the portfolio was 81.0% (Q3 2024: 80.1%). The occupancy rate increased to 82.1% as of 31 December 2024 (30 September 2024: 80.5%).

    Overview of the Fund’s investment properties as of 31 December 2024

    Property name Sector Fair value1 NLA Direct property yield Net initial yield Occupancy rate
    (EUR ‘000) (sq. m) 20242 20243
    Vilnius, Lithuania            
    Europa SC Retail 35,946 17,092 2.3% 2.8% 80.6%
    North Star Office 19,548 10,734 6.5% 7.0% 91.8%
    Meraki Office 16,3804 7,833 1.2% 1.5% 86.3%
    Total Vilnius   71,874 35,659 3.0% 3.6% 85.2%
    Riga, Latvia            
    Upmalas Biroji BC Office 19,224 11,203 3.7% 4.2% 64.1%
    Vainodes I Office 15,900 8,128 8.8% 8.8% 100.0%
    S27 Office 11,360 7,303 (0.6%) (0.9%) –
    Sky SC Retail 4,900 3,260 8.6% 8.5% 100.0%
    Galerija Centrs Retail 60,020 19,423 3.2% 4.1% 84.7%
    Total Riga   111,404 49,317 3.7% 4.5% 71.0%
    Tallinn, Estonia            
    Postimaja & CC Plaza complex Retail 21,800 9,232 3.7% 6.7% 100.0%
    Postimaja & CC Plaza complex Leisure 13,190 7,869 4.8% 4.3% 97.7%
    Lincona Office 13,100 10,767 6.4% 7.4% 88.5%
    Pirita SC Retail 9,790 5,425 6.7% 9.2% 97.1%
    Total Tallinn   57,880 33,293 4.9% 6.7% 95.3%
    Total active portfolio   241,158 118,269 3.8% 4.7% 82.1%
    1. Based on the latest valuation as of 31 December 2024 and recognised right-of-use assets.  
    2. Direct property yield (DPY) is calculated by dividing annualized NOI by the acquisition value and subsequent capital expenditure of the property.
    3. The net initial yield (NIY) is calculated by dividing annualized NOI by the market value of the property.
    4. Meraki value measured at disposal price. Market value according to independent property valuators Newsec is EUR 17,490,000.

    CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

    EUR ‘000 01.10.2024 01.10.2023 01.01.2024 01.01.2023
    – 31.12.2024 – 31.12.2023 – 31.12.2024 – 31.12.2023
    Rental income 3,779 3,755 15,136 17,743
    Service charge income 1,145 1,487 4,744 6,008
    Cost of rental activities (2,205) (2,348) (8,292) (9,134)
    Net rental income 2,719 2,894 11,588 14,617
             
    Administrative expenses (644) (631) (2,373) (2,617)
    Other operating income (expenses) 3 29 18 44
    Losses on disposal of investment properties (245) (237) (863) (4,047)
     Valuation losses on investment properties (3,052) (7,250) (15,581) (21,876)
    Operating profit (loss) (1,219) (5,195) (7,211) (13,879)
             
    Financial income 169 29 196 104
    Financial expenses (2,789) (2,538) (10,540) (9,854)
    Net financial expenses (2,620) (2,509) (10,344) (9,750)
             
    Profit (loss) before tax (3,839) (7,704) (17,555) (23,629)
    Income tax charge 457 (53) 774 656
    Profit (loss) for the period (3,382) (7,757) (16,781) (22,973)
           
    Other comprehensive income that is or may be reclassified to profit or loss in subsequent periods
    Net gain (loss) on cash flow hedges (446) (759) (1,003) (1,273)
    Income tax relating to net gain (loss) on cash flow hedges 1 64 52 123
    Other comprehensive income (expense), net of tax, that is or may be reclassified to profit or loss in subsequent periods (445) (695) (951) (1,150)
             
    Total comprehensive income (expense) for the period, net of tax (3,827) (8,452) (17,732) (24,123)
             
    Basic earnings per unit (EUR) (0.02) (0.06) (0.13) (0.19)
    Diluted earnings per unit (EUR) – – (0.12) –
                 

    CONSOLIDATED STATEMENT OF FINANCIAL POSITION

    EUR ‘000 31.12.2024 31.12.2023
    Non-current assets    
    Investment properties 241,158 250,385
    Intangible assets 4 11
    Property, plant and equipment 5 4
    Derivative financial instruments 1 295
    Other non-current assets 1,225 647
    Total non-current assets 242,393 251,342
         
    Current assets    
    Trade and other receivables 2,800 2,591
    Prepayments 802 402
    Derivative financial instruments – 621
    Cash and cash equivalents 10,053 6,182
    Total current assets 13,655 9,796
    Total assets 256,048 261,138
         
    Equity    
    Paid in capital 151,495 145,200
    Cash flow hedge reserve (420) 531
    Retained earnings (52,980) (36,199)
    Total equity 98,095 109,532
         
    Non-current liabilities    
    Interest-bearing loans and borrowings 98,491 64,158
    Deferred tax liabilities 1,898 2,774
    Other non-current liabilities 1,446 1,079
    Total non-current liabilities 101,835 68,011
         
    Current liabilities    
    Interest-bearing loans and borrowings 50,736 79,584
    Trade and other payables 4,473 3,343
    Income tax payable 14 6
    Other current liabilities 895 662
    Total current liabilities 56,118 83,595
    Total liabilities 157,953 151,606
    Total equity and liabilities 256,048 261,138

    For additional information, please contact:

    Tarmo Karotam
    Baltic Horizon Fund manager
    E-mail tarmo.karotam@nh-cap.com
    www.baltichorizon.com

    The Fund is a registered contractual public closed-end real estate fund that is managed by Alternative Investment Fund Manager license holder Northern Horizon Capital AS. 

    Distribution: GlobeNewswire, Nasdaq Tallinn, Nasdaq Stockholm, www.baltichorizon.com

    To receive Nasdaq announcements and news from Baltic Horizon Fund about its projects, plans and more, register on www.baltichorizon.com. You can also follow Baltic Horizon Fund on www.baltichorizon.com and on LinkedIn, Facebook, X and YouTube.

    This announcement contains information that the Management Company is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the above distributors, at 19:30 EET on 17 February 2024.

    Attachment

    The MIL Network –