NewzIntel.com

Category: Intelligence Agencies

  • MIL-Evening Report: Social media groups can offer support to new parents. Here’s how to tell if there’s marketing involved

    Source: The Conversation (Au and NZ) – By Nicole Bridges, Senior Lecturer in Public Relations and Director of Academic Program – Communication, Creative Industries, Screen Media, Western Sydney University

    Stock Rocket/Shutterstock

    For new parents struggling with challenges such as breastfeeding and sleep deprivation, social media can be a great place to turn for advice. Digital platforms such as Facebook and Reddit host a range of groups that offer peer support and information.

    Research shows connecting with other new parents can also foster a sense of community.

    But there is growing concern businesses and influencers may also be using groups to push certain products and services.

    In recent media reports, new parents have described feeling misled, after discovering the parent support group they thought was founded by a local mum was run by a media company owner and monetised through advertising.

    So how can you identify when commercial interests are involved?

    Here’s what to look out for to get the best from online parenting groups.

    How can social media groups help?

    In Australia, closed Facebook groups are a popular choice for parents accessing free peer support and information online. Closed groups are not public – they are run by administrators and moderators who can approve requests from other users for membership.

    These groups are often started by not-for-profit organisations or parents themselves and have a number of benefits. Parents can connect with others, share experiences, seek advice and learn about different parenting approaches.

    This can be particularly useful for people in remote and regional areas who may find it harder to access in-person support, and was essential during COVID lockdowns.

    My research with colleagues has revealed the important role these groups can play.

    In several studies we have looked at how parents use closed Facebook groups facilitated by the Australian Breastfeeding Association.

    Over four weeks, we tracked the frequency and type of posts, the number and nature of the comments, and how parents felt about the support they received in these groups.

    We found they provided information and emotional support group members could trust because they were facilitated by trained peer breastfeeding counsellors and other mothers.

    This is significant because we know lack of breastfeeding support is often cited by mothers as one of the key reasons for premature weaning.

    The group administrators played an important role responding to queries and making sure discussions stuck to the association’s code of ethics.

    This code encourages mutual respect, sharing evidence-based information, and co-operation with health professionals. It also discourages the promotion of products and services.

    Our research has shown the value of accessing trusted information and sharing experiences in a supportive community, where human connection is centred rather than products.

    Online groups can help parents connect to a community.
    AnnaStills/Shutterstock

    What’s the problem with monetising groups?

    When access to parenting support and information is limited or biased, it can have serious consequences for those already facing challenges with parenting.

    Let’s imagine an example. A group member is posting about birth trauma. But in responding, other members aren’t allowed to mention local service providers – for example, counselling – because they are not paid sponsors of the group.

    This means advice is skewed towards organisations that can afford to pay for sponsorship and be mentioned.

    As a result, new parents might not find out about the range of not-for-profit support groups that can help them with important challenges like breastfeeding and postpartum mental health.

    This deceptive practice can erode trust within online communities. Users may perceive the platform as prioritising profit over the wellbeing of its members, which can reduce engagement and the overall quality of the group.

    It may also leave new parents – who are particularly vulnerable to unethical marketing – open to exploitation.

    What can we do?

    Protecting parents from commercialised social media groups requires a multifaceted approach.

    First, regulation is crucial, such as ensuring that social media groups are transparent about any commercial interests, and commercial entities are marketing their products ethically.

    Second, we need public awareness campaigns to educate parents about the potential biases and risks associated with commercialised platforms. This includes fostering media literacy skills to critically evaluate information and identify reliable sources.

    Finally, collaboration between policymakers, researchers, industry representatives, and parent advocacy groups is vital to develop effective solutions that address these challenges.

    Parents may already be dealing with challenges such as sleep deprivation.
    Ground Picture/Shutterstock

    What should I look out for?

    To protect yourself from misinformation in online parenting groups, it’s crucial to be critical of information sources. It’s a good idea to:

    • watch out for warning signs like excessive product promotion, lack of transparency about group affiliations, and a primary focus on selling. For example, when joining a closed Facebook group, read the page’s “about” section. If there is mention of advertising or sponsorship, this is a red flag

    • look at who the “admins” are. If listed admins include business names that can also be a cause for concern

    • check out the list of “members”. If the group accepts “pages” (which are often run by businesses) in addition to individual people, this is also a sign that commercial interests are at play.

    • look for groups focused on sharing experiences, offering support, and building authentic relationships

    • observe how members interact and how heavily the groups are moderated and censored, and seek out groups with diverse perspectives

    • when you join the group, carefully consider the group rules that you are agreeing to and what they say about mentioning support services, and the promotion of commercial products. Will this mean that you may be censored or receive censored information?

    Always cross-reference information with reputable sources like government organisations (such as the Raising Children Network or Australian Breastfeeding Association) and compare information from multiple sources to get a balanced perspective.

    Finally, trust your instincts. If a group feels “off” or overly promotional, don’t hesitate to leave.

    Nicole Bridges is a volunteer breastfeeding counsellor and educator with the Australian Breastfeeding Association.

    – ref. Social media groups can offer support to new parents. Here’s how to tell if there’s marketing involved – https://theconversation.com/social-media-groups-can-offer-support-to-new-parents-heres-how-to-tell-if-theres-marketing-involved-247212

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI USA: Gov. Pillen Advocates for Property Tax Relief Through TEEOSA Adjustments

    Source: US State of Nebraska

    . Pillen Advocates for Property Tax Relief Through TEEOSA Adjustments

     

    LINCOLN, NE – Today, Governor Jim Pillen testified before the Nebraska Legislature’s Education Committee in favor of LB303 which aims to provide Nebraskans with additional property tax relief by altering the Tax Equity and Educational Opportunities Support Act (TEEOSA). Senator Jana Hughes introduced LB303 at the Governor’s request.

     

    TEEOSA has been Nebraska’s school funding formula since 1990. Its primary function is to provide state equalization aid to those schools where the needs exceed budget resources. During his testimony, Gov. Pillen pointed out that since 2000, school district taxes have increased from $1 billion to over $3 billion, and in that same time frame, the number of equalized school districts has dropped significantly, from 226 to just 60.

     

    “Nebraska’s students and taxpayers need stability in funding. School districts often live under uncertain budget circumstances. It is difficult to project the amount of dollars that will come from the TEEOSA formula as property tax valuations continue to rise across the state,” said Gov. Pillen. “Providing stability to the TEEOSA formula is necessary and will require constant review and consideration. We must start managing the formula and not allowing the formula to manage us.”

     

    Among the proposed changes to TEEOSA in LB303:

     

    • Dropping the maximum levy from $1.05 to $1.02
    • Increasing the minimum amount of state aid for each public-school student (Foundation Aid) by 6%, from $1500 to $1590 per student
    • Prohibiting school districts with a base levy adjustment of lower than $.30 from receiving state aid
    • Creating a commission to review the TEEOSA formula every year and provide feedback to elected officials on potential improvements

     

    Both Sen. Hughes and Gov. Pillen emphasized that ensuring local control among school districts was paramount to this legislation.

     

    “During the current fiscal year, 111 schools have seen a decrease in state aid. Modeling from the Nebraska Department of Education shows that LB303 will provide just over $62 million more in state aid to schools,” said Sen. Hughes. “While this doesn’t fully compensate for the loss due to rising valuations, it will lessen the impact on property taxpayers next year. Without the increase in funds provided to schools through LB303, the entire loss in state aid to these districts will fall to taxpayers.”

     

    Organizations testifying in favor of LB 303 included the Nebraska State Education Association (NSEA), Greater Nebraska Schools Association (GNSA), Educational Service Units (ESUs), Nebraska Association of School Boards (NASB), Nebraska Council of School Administrators (NCSA), Open Sky Policy Institute, Nebraska Rural Community Schools Association (NRCSA), Schools Taking Action for Nebraska Children’s Education (STANCE), Nebraska Farmers Union and the Nebraska Farm Bureau, representing a working group of ag organizations.

     

     

    MIL OSI USA News –

  • MIL-OSI Security: Three People Charged in Commercial Bribery Scheme

    Source: Office of United States Attorneys

    DENVER – The United States Attorney’s Office for the District of Colorado announces that Edward Joseph Chmiel, 49, Henry Lozano, 43, and Sabino Loera, 51, have been charged with conspiracy to commit money laundering arising out of a scheme to submit fraudulent invoices to a contractor providing services for a Colorado electrical utility.

    Loera and Lozano made their initial appearances in federal court on February 10. Chmiel is expected to have his initial appearance later this month.  According to the criminal information, Chmiel and Loera worked for a company providing electrical contracting services to a utility company in Colorado. Lozano owned a company providing trucking and hauling services. In August 2018, the three agreed that Lozano’s company would provide those services in exchange for kickback payments to Chmiel and Loera.  To generate the money that would pay the kickbacks, the three schemed to submit false invoices from Lozano’s company to Chmiel and Loera’s. Once Lozano was paid for those invoices, Loera would direct Lozano to issue checks to a network of 15 other people. Those people cashed the checks and then gave the cash to Chmiel and Loera.  Between August 2018 and June 2020, the false invoices generated approximately $1,495,781.51 in kickback proceeds.

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

    The investigation is being conducted by the Internal Revenue Service Criminal Investigation and the FBI Denver Field Office. The case is being prosecuted by Assistant United States Attorneys Sonia Dave and Bryan Fields.

    Case Number: 25-cr-00024-RMR             

    MIL Security OSI –

  • MIL-OSI Security: Humboldt County Woman Charged With Embezzling Over $500,000 From Construction Company Employer

    Source: Office of United States Attorneys

    SAN FRANCISCO – A federal grand jury has indicted Christina Ann Mobley, also known as Kris Mobley, 58, on charges that she defrauded her former employer, a construction company located in Fortuna, Calif.  

    According to an indictment filed Feb. 5, 2025, Mobley was employed as the business manager for a Fortuna construction company.  When the company’s bookkeeper retired, Mobley took on the accounting and bookkeeping duties, including inputting entries into the company’s accounting software and assisting with bill payments, payroll taxes, employee health benefits, government contracts, and other tasks.

    The company maintained an account at a bank and had several business credit cards through the bank for its employees.  It also held a business credit card at another bank, where Mobley maintained at least two personal credit card accounts.  The indictment describes that Mobley’s scheme to defraud took on several forms.  Mobley allegedly directed checks mailed from the company’s bank account to be applied to the accounts for her personal credit cards; issued electronic payments of company funds to her personal credit cards; misused the company’s credit card for personal expenses such as cash advances at casinos and personal travel; wrote checks from the company to herself; inflated her vacation time, work hours, and bonuses in the company’s payroll system; and issued duplicate payroll checks and unearned bonus payments to herself.  Between January 2022 and November 2024, Mobley allegedly embezzled more than $500,000 from her employer.  

    The indictment charges Mobley with three counts of mail fraud under 18 U.S.C. § 1341 and seven counts of wire fraud under 18 U.S.C. § 1343.  Mobley made an initial appearance in federal district court in McKinleyville, Calif., this morning, and was released on bond with conditions set by the Court.  Mobley is next scheduled to appear on Feb. 26, 2025, at 1:30 p.m., before Senior U.S. District Judge Charles R. Breyer.

    United States Attorney Ismail J. Ramsey and FBI Acting Special Agent in Charge Dan Costin made the announcement.

    An indictment merely alleges that crimes have been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, Mobley faces a maximum penalty of 20 years in prison for each count under 18 U.S.C. §§ 1341 and 1343, a fine of $250,000 or twice the value of the property involved in the transactions, and forfeiture and restitution.  Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    Assistant U.S. Attorney Kevin Barry is prosecuting this case with the assistance of Marina Ponomarchuk.  This prosecution is the result of an investigation by the FBI.

    Christina Ann Mobley Indictment
     

    MIL Security OSI –

  • MIL-OSI Australia: 36-2025: List of treatment providers: treatment provider suspended – GG IKLIM GRUP LIMAN HIZMETLERI A.S. (AEI: TR4034SB)

    Source: Australia Government Statements – Agriculture

    11 February 2025

    Who does this notice affect?

    Stakeholders in the import and shipping industries—including vessel masters, freight forwarders, offshore treatment providers, Biosecurity Industry Participants, importers, customs brokers, principal agents and master consolidators.

    What has changed?

    Following identification of critical non-compliance, we have suspended GG IKLIM GRUP LIMAN HIZMETLERI A.S. (AEI: TR4034SB) from AusTreat.

    The treatment provider has…

    MIL OSI News –

  • MIL-OSI Security: Passaic County Man Charged With Threatening Flight Attendants On An Airplane

    Source: Office of United States Attorneys

    NEWARK, N.J. – A Passaic County, New Jersey man was arrested for threatening flight attendants and crew members during an incident in which he refused to comply with flight attendant instructions, banged on the cockpit door, and called out and threatened the captain before being escorted off the flight by law enforcement to Newark Liberty International Airport, Acting United States Attorney Vikas Khanna announced.

    Luis A. Vaquero, 27, of Passaic County, New Jersey, was charged by complaint in Newark federal court with one count of interference with flight crew members and attendants by assault or intimidation. He appeared before Magistrate Judge Stacey D. Adams in Newark, New Jersey federal court, and was released.

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

    On February 9, 2025, shortly after taking off on a flight from Miami, Florida, Vaquero began threatening and harassing various passengers, including making threats of physical violence toward a disabled minor and mocking a group of Jewish passengers. Vaquero also threatened a flight crew member who declined to serve Vaquero alcohol after the beverage service window closed, telling her, “You better watch out, shit’s gonna happen to you.”  Upon landing at Newark Liberty International Airport, flight attendants alerted law enforcement.  After hearing the announcement that the airplane was awaiting the arrival of law enforcement, Vaquero forced his way to the front of the plane and began banging on the flight deck door, demanding, “I need the pilot to come outside!”  When a flight attendant attempted to intervene, Vaquero yelled, “I will really break your fuckin’ jaw n***a!”  Vaquero also yelled, “I wanna see that fuckin’ captain!  Come outside you bitch ass n***a!”  When the captain emerged, Vaquero continued to make threats to the captain while six inches from his face until law enforcement intervened. 

    “The defendant is charged with threatening flight crew members and passengers while traveling to Newark. We are committed to keeping the skies safe for flying and will prosecute those who criminally interfere with the professionals responsible for ensuring passenger safety.”

    Acting United States Attorney Vikas Khanna

    “Over the course of a 3-hour flight, we allege Vaquero lost his temper and physically harassed not only the crew and captain, but passengers, making threats of physical violence toward a disabled minor and mocking a group of Jewish passenger.”  Acting Special Agent in Charge Terence G. Reilly said. “It all culminated in a terrifying attack and attempted breach of the flight deck when witnesses say he banged on the cockpit door and confronted the pilot.  The harrowing flight and other similar incidents onboard airplanes recently are creating tension and fear for fliers and crew members. FBI Newark has a warning for those who think it may not be a big deal—they’re breaking federal law, and they will be brought to justice.”

    The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000.

    Acting United States Attorney Vikas Khanna credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Superintendent of Police Edward T. Cetnar, for its assistance.

    The government is represented by Assistant United States Attorney Rachelle M. Navarro of the Bank Integrity, Money Laundering & Recovery Unit in Newark.

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

                                         ###

    Defense counsel: Adalgiza A. Nunez, Esq., Newark, New Jersey

    MIL Security OSI –

  • MIL-OSI: $HAREHOLDER ALERT: The M&A Class Action Firm Encourages Stockholders of AMCR, HEES, LBRDA, SDIG to Act Now

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) —

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

    • AMCOR plc (NYSE: AMCR), relating to the proposed merger with Berry Global Group, Inc. Under the terms of the agreement, Berry shareholders will receive a fixed exchange ratio of 7.25 Amcor shares for each Berry share held upon closing, resulting in Amcor and Berry shareholders owning approximately 63% and 37% of the combined company, respectively.

    ACT NOW. The Shareholder Vote is scheduled for February 25, 2025.

    Click here for more information https://monteverdelaw.com/case/amcor-plc-amcr/. It is free and there is no cost or obligation to you.

    • H&E Equipment Services, Inc. (Nasdaq: HEES), relating to the proposed merger with United Rentals, Inc. Under the terms of the agreement, United Rentals will acquire H&E for $92 per share in cash.

    ACT NOW. The Tender Offer expires on February 25, 2025.

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

    • Liberty Broadband Corporation (NASDAQ: LBRDA, LBRDK, LBRDP), relating to the proposed merger with Charter Communications, Inc. Under the terms of the agreement, Liberty Broadband common stockholders will receive 0.236 of a share of Charter common stock per share of Liberty Broadband common stock they own.

    ACT NOW. The Shareholder Vote is scheduled for February 26, 2025.

    Click here for more information https://monteverdelaw.com/case/liberty-broadband-corporation-lbrda-lbrdk-lbrdp/. It is free and there is no cost or obligation to you.

    • Stronghold Digital Mining, Inc. (Nasdaq: SDIG), relating to its proposed merger with Bitfarms Ltd. Under the terms of the agreement, Stronghold stockholders are expected to receive 2.52 shares of Bitfarms per share of Stronghold they own.

    ACT NOW. The Shareholder Vote is scheduled for February 27, 2025.

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

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

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

    About Monteverde & Associates PC

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

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

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

    Attorney Advertising. (C) 2024 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com). Prior results do not guarantee a similar outcome with respect to any future matter.

    The MIL Network –

  • MIL-OSI USA: Grassley Probes SafeSport Hiring Practices Following Arrest of Former Investigator for Sex-Crimes

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) is demanding answers from the U.S. Center for SafeSport on its vetting and hiring practices following reports SafeSport brought on an investigator later charged with theft and sexual misconduct.

    Grassley helped steer bipartisan legislation through Congress in 2017 that established SafeSport to investigate cases of athlete sex-abuse and harassment in Olympic governing bodies. SafeSport investigators work closely with athletes to uncover and compile sensitive information regarding these cases.

    “Claimants share deeply personal information with SafeSport investigators. For some, the memories they share with SafeSport are among their worst. Claimants and respondents alike deserve impartial, fair investigators who have not been accused of sexual misconduct of their own,” Grassley wrote.

    “Accusations of rape and other sex crimes against any SafeSport investigator are especially concerning given SafeSport’s mandate to protect athletes from similar abuse. Charges of that nature seriously call into question the quality of SafeSport’s vetting processes of its own officials,” Grassley continued.

    Read Grassley’s full letter HERE.

    Background:

    SafeSport around 2021 hired Jason Krasley, a former Pennsylvania police officer, while he was under active investigation for theft and tampering with evidence. After his arraignment for these charges in November 2024, SafeSport fired Krasley. On January 10, 2025, Krasley was arrested on additional charges of involuntary sexual servitude with the threat of serious physical harm, sexual assault and rape. It’s also alleged Krasley subjected an individual to harassing physical contact while still on SafeSport’s payroll in June 2024.

    Grassley was the first in history to convene a congressional hearing on athlete protections while serving as Chairman of the Senate Judiciary Committee in 2017. He also spearheaded oversight of the U.S. Olympic Committee, the FBI’s failed response to the Larry Nassar abuse scandal and the failures of SafeSport and USA Gymnastics to effectively safeguard athletes.

    Several Grassley-led measures to strengthen accountability for abusers have been signed into law. Last Congress, his bipartisan legislation to bolster the federal sex tourism statutes that had been too weak to convict Nassar became law as part of the 2024 National Defense Authorization Act.

    -30-

    MIL OSI USA News –

  • MIL-OSI USA: ICE operations between Feb. 1 and Feb. 6

    Source: US Immigration and Customs Enforcement

    February 10, 2025Washington, DC, United StatesEnforcement and Removal

    Two federal law enforcement officers coordinate with other officials on the ground during an enhanced immigration enforcement operation near Washington, D.C. Feb. 4.

    WASHINGTON, D.C. — U.S. Immigration and Customs Enforcement conducted a series of enhanced immigration enforcement operations across the nation between Feb. 1 and Feb. 7 in Baltimore, Maryland; Charleston, South Carolina; Hillsboro, Texas; Denver, Colorado; Washington, D.C. and several other cities across the nation. ICE’s routine daily operations continue, running in tandem with enhanced enforcement operations involving federal law enforcement partnerships with the FBI, the DEA, the ATF, U.S. Customs and Border Protection, and the U.S. Marshals Service for a whole-of-government approach.

    U.S. Immigration and Customs Enforcement officers arrest an undocumented Guatemalan alien charged with trespassing and possessing a loaded handgun and ammunition in the Baltimore area Feb. 1. The arrest was part of a routine daily operation for Baltimore’s ICE officials, who arrested this alien after local officials declined to honor an immigration detainer.

    Federal law enforcement officials conduct a pre-operational briefing in a Washington, D.C.-area parking lot Feb. 4. This enhanced immigration enforcement operation involved cooperation between U.S. Immigration and Customs Enforcement and its federal law enforcement partners with the Drug Enforcement Administration.

    Two federal law enforcement officers coordinate with other officials on the ground during an enhanced immigration enforcement operation near Washington, D.C. in the early morning hours of Feb. 4.

    ICE and DEA law enforcement officials conduct a pre-dawn briefing prior to an enhanced immigration enforcement operation in a Washington, D.C. suburb on the morning of Feb. 4.

    Federal law enforcement officials working with ICE and the DEA coordinate prior to beginning an enhanced immigration enforcement operation in the Washington, D.C. area before dawn Feb. 4.

    Federal law enforcement officials map out tactical plans before beginning an enhanced immigration enforcement operation near Washington, D.C. Feb. 4.

    ICE arrested Jesus Vazquez Daniel, a 58-year-old undocumented alien from Mexico, Feb. 2 near Hillsboro, Texas. Vazquez is wanted in Hidalgo, Mexico, for aggravated homicide for allegedly beating a homeowner to death during an attempted burglary.

    ICE and the DEA arrested Raul Buitron Vidal in Philadelphia Feb. 4. Buitron is Mexican national with a history of illegal reentry and several DUI arrests in Pennsylvania.

    ICE and the DEA arrested Raul Buitron Vidal in Philadelphia Feb. 4. Buitron is Mexican national with a history of illegal reentry and several DUI arrests in Pennsylvania.

    ICE arrested German Ronal Del Cid Carranza, 33, during routine daily operations in Silver Spring, Maryland, Feb. 4. Del Cid, a known MS-13 member, was convicted of a weapons crime and sentenced to two years in prison in 2023.

    U.S. Immigration and Customs Enforcement Special Agent in Charge Tim Lenzen and ICE acting Director Caleb Vitello reviewing plans for an enhanced immigration enforcement operation at the Operations Command Center in Denver Feb. 5.

    Federal law enforcement officials from U.S. Immigration and Customs Enforcement, the Drug Enforcement Administration, the ATF and the FBI run an enhanced immigration enforcement operation from the Operations Command Center in Denver Feb. 5.

    U.S. Immigration and Customs Enforcement Field Office Director Matt Elliston and FBI Special Agent in Charge William Del Bagno coordinate ahead of an enhanced enforcement operation in Baltimore Feb. 5. The operation targeted MS-13 gang members in Maryland.

    U.S. Immigration and Customs Enforcement Field Office Director Matt Elliston and a team of federal law enforcement officers from the FBI, the ATF and other agencies take an alleged MS-13 member into custody during an enhanced enforcement operation near Baltimore Feb. 5.

    U.S. Immigration and Customs Enforcement Field Office Director Matt Elliston and a group of federal law enforcement officers take an alleged MS-13 member into custody during an enhanced enforcement operation near Baltimore Feb. 5.

    ICE officials arrest Tren de Aragua gang members in Charleston, South Carolina, Feb. 3 during a routine daily operation.

    An ICE official arrests a Tren de Aragua gang member in Charleston, South Carolina, Feb. 3 during a routine daily operation.

    An ICE official arrests a Tren de Aragua gang member in Charleston, South Carolina, Feb. 3 during a routine daily operation.

    Federal law enforcement officials talk to an MS-13 member after his arrest during an enhanced enforcement operation near Baltimore Feb. 6.

    Track quarterly ICE arrest, detention and removal statistics

    Call 866-DHS-2-ICE (866-347-2423) or fill out ICE’s online tip form to report crimes and suspicious activity.

    Access B-roll and images of ICE’s most current arrests and removals on ICE’s DVIDS page and ICE’s Flickr Photostream. Get breaking news, public safety information and more by following ICE on X at @ICEgov. You can also follow ICE on Facebook and follow ICE on Instagram for updates and more.

    MIL OSI USA News –

  • MIL-OSI Australia: Minister Rishworth interview on 4BC Breakfast with Peter Fegan

    Source: Ministers for Social Services

    E&OE TRANSCRIPT

    Topics: Antisemitism; US tariffs on aluminium and steel; US-Australia trade relationship; NDIS; Foundational supports; Australian federal election.

    PETER FEGAN, HOST: Someone that had a front row seat to the action, Social Services Minister Amanda Rishworth. She joins me on the line. Minister, it’s great to have your company this morning.

    AMANDA RISHWORTH, MINISTER FOR SOCIAL SERVICES: Good morning. Great to be with you.

    PETER FEGAN: Antisemitism is a very touchy subject. Now, the Attorney-General has accused the Coalition of politicising antisemitism. But look, I think the sad reality is, Minister, it is a political issue, but I think it was a little childish of the Coalition yesterday to try and attempt to silence the Attorney-General because Mark Dreyfus is Jewish.

    AMANDA RISHWORTH: It was a pretty unusual circumstance. We had Mark Dreyfus getting up and talking very personally about the impact that antisemitism has had on him and his family. In fact, he has direct family members that died in the Holocaust. So, it was a really moving comment. And he was making the point how dangerous it can be to politicise. Now, to shut down the Attorney-General by moving a motion that he no longer be heard was ironic. I mean, that was pretty ironic and pretty concerning, especially when the Parliament should be about free speech and canvassing these types of issues.

    PETER FEGAN: Yeah, look, I thought the move was very strange considering that, yes, he is Jewish and he had personal experiences. I thought it would have been more touching to allow Mark Dreyfus to talk. But look, it is politics. I want to move on, Minister, if I can, to President Trump’s threat to impose these 25 per cent tariffs on Australia’s aluminium industry. It is a really scary prospect. But, you know, particularly given the cost to Rio Tinto and, you know, and big companies like that BlueScope as well. But look, we don’t export a lot of those materials to America. But I think more broadly there’s an issue here, and it’s the relationship between the US and it hangs in the balance here. Do you think that the comments made by Anthony Albanese and Kevin Rudd may come back to bite us on the backside here?

    AMANDA RISHWORTH: Look, I think that the Prime Minister in particular has demonstrated already he is able to build strong relationships with world leaders. If you have a look at it, before President Trump even took office, our Prime Minister had had a conversation with him. Very few countries got an invite to the inauguration. Penny Wong was there, and we have Richard Marles meeting his Defence Minister counterpart just over the weekend. So, the relationship is strong. We will be working in our national interest. Our Prime Minister always does that. Obviously, President Trump has made comments that he will impose these across every country, but we will be working very closely in our national interest. I think the relationship is very strong. We’ve been working on it, and we’ll keep working on it in our national interest.

    PETER FEGAN: Let’s move on to your brief. The NDIS, it is as a ‘you know what’ sandwich. It’s been handed to you by Bill Shorten. The first question I want to ask you, Minister, and I hope you don’t deny this, have you been handed, have you been left a mess by Bill Shorten? Because the opinion of Australia is the NDIS couldn’t be in worse shape.

    AMANDA RISHWORTH: Well, firstly, I would say that the problems in the NDIS are not new. The reason why many of Australians understand some of the challenges in the NDIS is because Minister Shorten actually raised them. Just a couple of things…

    PETER FEGAN: He raised them, but he didn’t fix them, though, Minister. I mean, come on, let’s call it what it is. He never fixed the issues in the NDIS. He may have raised them, but under his watch you had NDIS carers taking patients or taking their clients to strip clubs, cash buying vehicles, going on holidays. It was an absolute mess, and it all happened under Bill’s watch.

    AMANDA RISHWORTH: No, no, that is just not true. Some of these things had happened for a long time. What we did, and what Minister Shorten did, was have a list of what things could be funded and what couldn’t. Before that, there hadn’t been a list of what could be and couldn’t be funded. Firstly, I would make the point that the NDIS does provide lifechanging supports for many Australians with disability. What I’m hearing, though, of course, and this is the work that Minister Shorten started and I will continue, is firstly, bring integrity back to the system and making sure that people are spending the money and getting support for the things that make a difference in their lives. Secondly, I would say that I hear a lot about making sure that there is fairness and consistency in decision making at the same time as making sure that individuals have an individualised plan. But the crackdown on some of the misuse of NDIS money was only brought to the fore because Bill Shorten decided to set up a fraud task force and actually have a look at this. Some of the practices previously, were invoices weren’t even being checked, they were just being paid.

    PETER FEGAN: But how do we get to that stage? How do we get to that stage where invoices aren’t even checked? I mean, the captain goes down with the ship, unfortunately, Minister.

    AMANDA RISHWORTH: No, no, they are now. We’ve got to bring integrity [to the system] and that’s what Minister Shorten started. It’s a long process because quite frankly, the previous government just did not pay attention to the work that needed to be done in the NDIS. So, we need to get it back to its original intent and that was providing reasonable and necessary support so that individuals with disability can achieve their goals and aspirations. And I think that is where we need to get back to and that’s what I’m absolutely committed to doing.

    PETER FEGAN: My guest this morning is the Minister for Social Services, Amanda Rishworth. One of the things I will agree with, which I think is a good move by the Albanese Government, is people with milder disabilities will be on a different system. It’s an all new system. And I think that’s what part of the NDIS may have been – the determination between people with milder disabilities, with more severe disabilities. But the only problem is the states aren’t getting on board. What’s the update? Because I know that you’ve been working behind the scenes on this, you want to try and get this rolled out by about July 1. Are the states playing ball?

    AMANDA RISHWORTH: This is a joint effort between states and territories and just last week, First Ministers agreed to continue work on what are called foundational supports. And I have to be really clear, these supports will be critical for people. We also need to make sure the evidence is there behind these supports as well. So, we’re working very closely with the states and territories, and we will continue to do so. We are still expecting that foundational supports will start to be rolled out in the second half of this year. Although just to be clear, it was never expected the whole system would be set up in the second half of this year. As the NDIS Review pointed out, there was a long term process. But look, I’m working with absolute good faith with the states and territories. Look, there’s different views and we’ll keep working with them, but I know they are keen as well to make sure that children particularly with disability, get the best evidence-based support they can that actually make a difference and actually change the trajectory of their lives. And that’s what I’m focused on.

    PETER FEGAN: Minister, before I let you go, I’ve just had a message here from the Prime Minister’s office that says Pete, you can ask the Minister, we’re giving her permission to let us know when the election is. You’re right to go.

    AMANDA RISHWORTH: Unfortunately that’s above my pay grade.

    PETER FEGAN: I’d say April 12. You’ll be busy. I’d say April 12. Minister, thanks for having for jumping on this morning. Nice to have your time.

    AMANDA RISHWORTH: No worries, have a good one.

    MIL OSI News –

  • MIL-OSI Security: Convicted Knoxville Gang Leader Sentenced To 45 Years For Drug Trafficking, Firearms, and Money Laundering Crimes

    Source: Office of United States Attorneys

    KNOXVILLE, Tenn. On February 10, 2025, Bryan Cornelius, 34, of Knoxville, was sentenced to a total term of 45 years in prison by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.  Following his imprisonment, Cornelius will be on supervised release for five years.

    The sentencing follows Cornelius’s federal trial in April 2022, during which a jury convicted him of conspiring to distribute various controlled substances, including methamphetamine, heroin, fentanyl, and marijuana.  The evidence presented at trial included wiretaps of multiple cellular phones, multiple search warrants at various Knoxville residences, narcotics, firearms, and cash seizures.  The evidence showed that Cornelius, a member of the Gangster Disciples street gang, was ordering narcotics from different sources of supply in California and receiving packages of methamphetamine and marijuana through the United States Postal Service (USPS), Fed-Ex, and UPS throughout 2019 and that he maintained multiple addresses across Knoxville to stash his narcotics, firearms, and cash to facilitate his narcotics distribution.  In addition, the evidence showed that, in furtherance of his drug trafficking, at approximately 2:45 p.m. on November 21, 2019, Cornelius, along with two others, drove by the Stop-n-Go on Brooks Avenue and Cornelius and fired fifteen rounds of 7.62mm into a Mercedes-Benz.  The driver sustained two non-life-threatening gunshot wounds.  The jury also convicted Cornelius of conspiracy to commit money laundering. According to court documents, twenty-two other charged members of the conspiracy previously pleaded guilty.

    In determining the sentence, Judge Varlan took into account several aggravating factors, including Cornelius’s role as a leader and organizer of the crimes, his credible threats of violence made against other people in connection with his crimes, and his use of guns and violence in connection with his crimes.

    U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Joe Carrico of the Federal Bureau of Investigation (FBI), and Tommy D. Coke of the U.S. Postal Inspector in Charge of the Atlanta Division, made the announcement.

    This conviction and sentence resulted from an investigation conducted by the FBI HIDTA Task Force and the United States Postal Inspection Service (USPIS).  The FBI HIDTA Task Force includes the Roane County Sheriff’s Office, Knoxville Police Department, Knox County Sheriff’s Office, Blount County Sheriff’s Office, and Sevier County Sheriff’s Office. The Tennessee Bureau of Investigation and the Drug Enforcement Administration, also assisted in this investigation by conducting drug analysis on seized narcotics in the case.

    Assistant United States Attorneys Cynthia Davidson and Alan Kirk represented the United States.

    This case was part of the Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs.  OCDETF is the primary weapon of the United States against the highest-level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking.  The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies.  The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.

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

                                                                                                                              ###

    MIL Security OSI –

  • MIL-OSI Security: Final defendant sentenced in large-scale federal drug trafficking case

    Source: Office of United States Attorneys

    BEAUMONT, Texas – A large-scale investigation has concluded with multiple individuals being sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Abe McGlothin, Jr.

    According to information presented in court, beginning in 2021, law enforcement investigated a drug trafficking organization operating throughout East Texas, identifying Edgar Garcia, Jr. as the primary distributor.  Law enforcement began conducting operations to identify numerous individuals receiving methamphetamine from Garcia. During the investigation, law enforcement executed residential search warrants, purchased methamphetamine and/or firearms directly from Garcia and other members of his drug trafficking organization, and directed traffic stops to intercept narcotics and firearms being transported for distribution. Ultimately, multiple kilograms of methamphetamine were seized during the operation.

    Law enforcement was also able to obtain almost a dozen firearms from various individuals in the organization. The firearms were either sold as part of narcotics transactions or being used to guard the illegal drugs.

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

    The individuals sentenced to federal prison during the investigation and prosecution of the drug trafficking organization are:

    Edgar Garcia Jr., 26, of Nacogdoches, sentenced to 151 months;

    Justin Michael Sanchez, 33, of Nacogdoches, sentenced to 235 months;

    Beverly Hurst, 26, of Center, sentenced to 151 months;

    Jason Clepper, 36, of Goliad, sentenced to 150 months;

    Blake Trahan, 29, of Center, sentenced to 48 months;

    Austin Yarbrough, 32, of Timpson, sentenced to 188 months;

    Laddarus Perkins, 40, of Timpson, sentenced to 135 months;

    Jeanese Fenley, 43, of Timpson, sentenced to 70 months; and

    Koury Nowell, 49, of Gary City, sentenced to 33 months.

    This case was investigated by the FBI; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Texas Department of Public Safety; Shelby County Sheriff’s Office; Nacogdoches County Sheriff’s Office; and Panola County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Donald S. Carter and Lucas Machicek.

    ###

    MIL Security OSI –

  • MIL-OSI USA: ICYMI: Sen. Joni Ernst in WSJ: USAID Is a Rogue Agency

    US Senate News:

    Source: United States Senator Joni Ernst (R-IA)
    WASHINGTON – In case you missed it, U.S. Senator Joni Ernst (R-Iowa) detailed in the Wall Street Journal how the U.S. Agency for International Development (USAID) acts against our nation’s best interests and stonewalled her oversight of where tax dollars are going and why. 
    As Senate DOGE Caucus chair and founder, Senator Ernst will continue to work with President Trump’s Department of Government Efficiency (DOGE) to examine how taxpayers’ money is spent and put an end to any waste, fraud, and abuse.
    WSJ: Sen. Joni Ernst: USAID Is a Rogue Agency
    It dodges congressional questions about money that went to sex traffickers and the Wuhan virus lab.
    By: Senator Joni Ernst
    In moments of crisis, America can be counted on for leadership. Our nation’s compassionate giving has saved millions of lives around the world that were at risk from starvation or disease. All Americans should be able to take great pride in our generosity. And the government agencies coordinating aid efforts should be eager to share details about how they’re using taxpayers’ money to make the world a better place.
    Yet the U.S. Agency for International Development, entrusted with disbursing tens of billions of aid dollars to other nations annually, is a rogue bureaucracy. I’ve uncovered that the agency often acts at odds with our nation’s best interests and uses intimidation and shell games to hide where money is going, how it’s being spent and why.
    USAID repeatedly rebuffed my requests for a list of recipients of U.S. tax dollars sent to Ukraine, claiming that the information was classified. Despite the pushback, I persisted. Eventually, USAID permitted my staff to review documents under surveillance in a highly secure room at USAID headquarters, with note-taking prohibited.
    What warranted such secrecy? We learned that the aid that was supposed to alleviate economic distress in the war-torn nation was spent on such frivolous activities as sending Ukrainian models and designers on junkets to New York City, London Fashion Week, Paris Fashion Week and South by Southwest in Austin, Texas.
    I faced the same stonewalling from USAID when I asked about tax dollars being diverted from project missions for largely unrelated costs, known as the negotiated indirect cost rate. The agency claimed that it wasn’t possible to track. My team debunked that by providing USAID staff with a link to a public database. The agency fired back, warning that divulging this information would violate federal laws, including the Economic Espionage Act.
    When I launched a formal investigation in cooperation with the House Foreign Affairs Committee, USAID relented. Turns out, the agency is allowing grantees to skim significant amounts of money, up to and even beyond half of the total, for themselves.
    We need guarantees that U.S. assistance is helping people in need, but a recent review by the agency’s own inspector general found USAID still “does not have proper documentation to support indirect costs charged” by grant recipients.
    I shouldn’t have to ask these questions. All federal spending is required to be publicly available on the website USAspending.gov, a searchable database created nearly two decades ago by a bipartisan law.
    USAID’s sketchy spending schemes were the impetus for this law aimed at making federal funding more transparent. Congressional investigators in 2005 caught the agency supporting an organization involved with the trafficking of teenage girls in Asia. USAID staff called the claims “destructive” and vehemently denied them. The evidence proved otherwise. A pass-through group, set up with the help of former agency employees, was found funneling U.S. tax dollars into abetting the sex trade operation.
    The agency has learned to exploit loopholes in the law, as my investigation into the origins of the pandemic exposed. The watchdog organization White Coat Waste Project was the first to release evidence that both USAID and Anthony Fauci’s National Institute of Allergy and Infectious Diseases were financing bat studies involving coronaviruses at the Wuhan Institute of Virology. Yet no grants to the Chinese lab appeared in USAspending.gov. Audits later uncovered that more than a million dollars from the U.S. government were paying for the dangerous research. The bulk of the money was provided by USAID, not Dr. Fauci.
    USAID evaded the obligation to report this transaction to USAspending.gov by using multiple pass-through organizations, including the nefarious EcoHealth Alliance, which is now barred from receiving U.S. government grants.
    What was our international development agency developing at China’s Wuhan Institute of Virology? If the Central Intelligence Agency and Federal Bureau of Investigation are correct that the Covid virus likely originated from a lab leak, USAID may have had a hand in a once-in-a-century pandemic that claimed the lives of millions.
    There’s no shortage of other questionable USAID projects. More than $9 million intended for civilian food and medical supplies in Syria ended up in the hands of violent terrorists. Another $2 million was spent promoting tourism to Lebanon, a nation the State Department warns against traveling to due to the risks of terrorism, kidnapping and unexploded land mines.
    USAID spent millions of dollars paying people to dig irrigation ditches in Afghanistan and encouraging farmers to grow food crops instead of poppies for opium. The result: Poppy cultivation nearly doubled.
    Many other groups supported by USAID are doing great work, such as caring for orphans and people living with HIV. Imagine how much more good work could be supported with the dollars that instead ended up enriching terrorists, sex traffickers, mad scientists and drug cartels.
    After keeping its spending records hidden from Congress and taxpayers, USAID employees are now protesting the review of the agency’s records by President Trump’s Department of Government Efficiency. It’s no surprise that Washington insiders are more upset at DOGE for trying to stop wasteful spending than at USAID for misusing tax dollars.
    The question we should be asking isn’t why USAID’s grants are being scrutinized, but why it took so long.
    Ms. Ernst, an Iowa Republican, is founder and chairwoman of the Senate DOGE Caucus.

    MIL OSI USA News –

  • MIL-OSI: PrairieSky Announces Fourth Quarter and Year-End Results for 2024, Including Record Annual Oil Royalty Production and Increased Annual Dividend

    Source: GlobeNewswire (MIL-OSI)

    CALGARY, Alberta, Feb. 10, 2025 (GLOBE NEWSWIRE) — PrairieSky Royalty Ltd. (“PrairieSky” or the “Company”) (TSX: PSK) is pleased to announce its fourth quarter and year-end operating and financial results for the period ended December 31, 2024. PrairieSky is also pleased to announce a 4% increase in its annual dividend policy to $1.04 per common share ($0.26 per common share quarterly).

    Fourth Quarter Highlights:

    • Oil royalty production volumes averaged 13,317 barrels per day, a 4% increase over Q4 2023(1), driven by strong third-party activity in the Mannville Stack(2) and Clearwater. Total royalty production averaged 24,982 BOE per day, a 2% decrease from Q4 2023 due to declines in natural gas and NGL production.
    • Royalty production revenue of $115.6 million combined with other revenue of $20.0 million to generate total revenues of $135.6 million for Q4 2024(1). Other revenue included bonus consideration of $15.8 million earned on entering into 60 new leasing arrangements focused on light and heavy oil targets across a number of different plays.
    • Funds from operations totaled $99.0 million or $0.41 per share, 11% below Q4 2023 primarily due to lower natural gas benchmark pricing.
    • Declared a fourth quarter dividend of $59.9 million ($0.25 per common share), representing a payout ratio of 61%.
    • Completed $31.5 million of both producing and non-producing royalty interest acquisitions primarily targeting light and heavy oil plays in Central Alberta and Saskatchewan. Acquisitions of producing assets (50 BOE per day) closed in late December 2024.

    Annual Highlights:

    • Record annual oil royalty production volumes averaged 13,125 barrels per day, a 6% increase over YE 2023(1). Total royalty production averaged 25,186 BOE per day, a 1% increase over YE 2023 as higher oil royalty volumes were partially offset by lower natural gas and NGL royalty volumes due to shut-ins and declines related to weak benchmark natural gas pricing.
    • Royalty production revenue of $465.8 million combined with other revenue of $43.4 million to generate total revenues of $509.2 million for YE 2024(1). Other revenue included bonus consideration of $30.8 million earned on entering into 219 new leasing arrangements focused on light and heavy oil targets across a number of different plays.
    • Funds from operations totaled $380.5 million or $1.59 per share, 1% below YE 2023.
    • Corporate proved plus probable reserves totaled 63,653 MBOE relative to 65,762 MBOE at December 31, 2023. Proved plus probable oil reserves totaled 26,620 Mbbl, a 3.5% increase over the prior year primarily due to drilling extensions in the Clearwater, Duvernay and Mannville light and heavy oil plays.
    • Declared cumulative annual dividends of $239.0 million ($1.00 per common share), representing a payout ratio of 63%.
    • Completed $57.3 million of both producing and non-producing royalty interest acquisitions primarily targeting light and heavy oil plays in Central Alberta and Saskatchewan.
    • Net debt totaled $134.9 million as at December 31, 2024, a decrease of $87.2 million or 39% since December 31, 2023.

    Dividend Increase:

    • PrairieSky is pleased to announce a 4% increase in its annual dividend policy to $1.04 per common share, to be paid on a quarterly basis ($0.26 per common share quarterly). Subject to the approval of the Board of Directors, the first quarterly dividend of $0.26 per common share is expected to be effective for the March 31, 2025 record date.
    		  
       

    President’s Message

    Oil royalty production averaged 13,317 barrels per day in Q4 2024 and drove funds from operations which totaled $99.0 million ($0.41 per share). These results capped off a strong 2024 with annual funds from operations of $380.5 million ($1.59 per share) and record annual oil royalty production of 13,125 barrels per day, a 6% increase over YE 2023. The growth in oil royalty volumes is a direct result of our strategy of investing in royalties in low-cost oil plays. For 2024, oil royalty production from the Clearwater and Mannville Stack plays represented 21% of total oil royalty production, up from 17% in 2023. The momentum in these plays is expected to continue into 2025 and beyond. We have also seen strong initial results from new wells on our West Shale Duvernay acreage as well as incremental well licensing, which we expect to provide growth in high netback light oil volumes in 2025.

    Third-party operators spud 205 wells on PrairieSky’s royalty acreage during Q4 2024, an increase from 197 wells spud in Q4 2023. The average royalty rate for wells spud in the quarter was 6.2% (Q4 2023 – 7.2%). There were 46 wells spud in the Clearwater, a 5% increase over Q4 2023, with an additional 13 wells spud in the Mannville Stack in the quarter. This brought 2024 annual spuds on PrairieSky’s royalty properties to 741 wells, as compared to 805 wells in 2023, with an average royalty rate of 5.9% (2023 – 7.2%). Multi-lateral drilling continues to increase on our lands accounting for 77 of the spuds in the quarter and bringing 2024 annual multi-lateral drilling to 36% of the activity on our royalty lands versus 31% in YE 2023. Increased multi-lateral drilling activity helped drive the 3.5% increase in proved plus probable oil reserves to 26,620 Mbbl. Corporate proved plus probable reserves decreased to 63,653 MBOE primarily due to lower natural gas pricing impacting both the level of activity in 2024 and future economics.

    Strong oil royalty volumes generated royalty revenue of $100.0 million and represented 87% of total royalty production revenue of $115.6 million for Q4 2024. Natural gas royalty production of 55.1 MMcf per day and NGL royalty production of 2,482 barrels per day decreased 9% and 8% in the quarter, respectively, as compared to Q4 2023 due to lower third-party drilling activity driven by weak natural gas benchmark pricing with daily AECO index pricing averaging $1.48 per Mcf. Natural gas royalty revenue totaled $6.3 million and NGL royalty revenue totaled $9.3 million in the quarter. Total royalty production averaged 24,982 BOE per day in Q4 2024, 2% lower than Q4 2023. PrairieSky’s annual total royalty production averaged 25,186 BOE per day, 1% ahead of YE 2023, and generated annual royalty production revenue of $465.8 million, 2% behind YE 2023.

    Leasing continued to be busy across a number of oil plays including the Duvernay, Mannville and Mannville Stack. Our team issued 60 new leases to 47 separate counterparties and earned $15.8 million in lease bonus consideration in the quarter, which included non-cash consideration of $8.2 million for certain leases that were exchanged for a non-producing gross overriding royalty interest targeting Mannville heavy oil with polymer enhanced oil recovery(3) potential. For YE 2024, lease bonus consideration totaled $30.8 million from issuing 219 new leases to 101 separate counterparties, the second highest number of leases issued in a single year as third-party operators looked to build out their drilling inventories.

    In addition to active leasing in the quarter, PrairieSky acquired $31.5 million of incremental producing and non-producing royalty interests focused on heavy and light oil plays in Central Alberta and Saskatchewan. Acquisitions of producing assets, approximately 50 BOE per day, closed in late December 2024. PrairieSky also entered into an arrangement with a third-party operator to provide a letter of credit which secured their bank facility in order to provide capital to the operator to advance its Montney oil drilling program where PrairieSky has a royalty interest. The letter of credit is secured by a debenture over certain of the third-party operator’s assets. For YE 2024, acquisitions of producing and non-producing royalty properties totaled $57.3 million and were focused on heavy and light oil plays in Central Alberta and Saskatchewan. On January 10, 2025, PrairieSky completed an acquisition of fee lands, lessor interests and gross overriding royalty interests primarily in Central Alberta and Southeast Saskatchewan for cash consideration of $50 million, before customary closing adjustments. The acquisition is expected to add approximately 350 BOE per day of production (65% liquids).

    PrairieSky declared a dividend of $0.25 per share or $59.9 million in the quarter with a resulting payout ratio of 61%. Excess funds from operations, after the payment of the dividend and acquisitions, were used to reduce PrairieSky’s net debt which totaled $134.9 million at December 31, 2024, a decrease of $87.2 million from December 31, 2023. During the quarter, PrairieSky amended its credit facility, voluntarily reducing it to $350 million from $725 million. The credit facility provides for a permitted increase up to $600 million, subject to lender consent. Management believes PrairieSky’s high margin, low-cost business model is uniquely suited to provide sustainable returns to shareholders through all commodity price cycles and we are pleased to announce a 4% increase to our annual dividend policy to $1.04 per common share annually ($0.26 per share quarterly). Subject to the approval of the Board of Directors, the first quarterly dividend of $0.26 per common share is expected to be effective for the March 31, 2025 record date.

    The level of activity on our land base and cash flow generation underscores the benefits of our strategy of investing in low-cost oil plays and the optionality of owning fee mineral title acreage. I am very pleased with our 2024 annual results and the trajectory of the business. I would like to thank our staff for their hard work throughout the year and our shareholders for their continued support.

    Andrew Phillips, President & CEO

    ACTIVITY ON PRAIRIESKY’S ROYALTY PROPERTIES

    Third-party operators continued to be active across PrairieSky’s land base in Q4 2024. There were 205 wells spud (97% oil wells) in the quarter which included 114 wells on GORR acreage, 80 wells on Fee Lands, and 11 unit wells. There were a total of 198 oil wells spud during the quarter which included 55 Mannville light and heavy oil wells, 46 Clearwater wells, 28 Viking wells, 22 Mississippian wells, 17 Bakken wells and 30 additional oil wells spud in the Belly River, Cardium, Charlie Lake, Devonian, Duvernay, Montney, Nisku, and Triassic formations. There were 3 Montney natural gas wells spud in Q4 2024 as well as additional gas wells in the Mannville and Viking formations. PrairieSky’s average royalty rate for wells spud in Q4 2024 was 6.2% (Q4 2023 – 7.2%). 2024 annual spuds on PrairieSky’s royalty properties totaled 741 wells, as compared to 805 wells in 2023, with an average royalty rate of 5.9% (2023 – 7.2%).

    For YE 2024, PrairieSky estimates that $1.9 billion (net – $93 million) in third-party capital was spent drilling and completing wells on PrairieSky’s royalty properties, a decrease from $2.0 billion (net capital – $112 million) in YE 2023. Activity on PrairieSky’s lands drove a 3.5% increase in proved plus probable oil reserves as discussed further below.

    ANNUAL DIVIDEND INCREASED 4% TO $1.04 PER SHARE

    PrairieSky is pleased to announce a 4% increase in its annual dividend policy to $1.04 per common share in 2025, to be paid on a quarterly basis. Subject to the approval of the Board of Directors, the first quarterly dividend of $0.26 per common share is expected to be effective for the March 31, 2025 record date. In determining changes to the dividend policy, the Board of Directors considers a number of factors including current and projected activity levels on PrairieSky’s royalty lands, the current commodity price environment, the working capital and bank debt balance and net earnings of the Company.

    2024 RESERVES INFORMATION

    PrairieSky’s proved plus probable oil reserves increased 3.5% to 26,620 MBOE at December 31, 2024, as drilling extensions and improved recoveries outpaced annual production. PrairieSky’s corporate proved plus probable reserves totaled 63,653 MBOE at December 31, 2024 (December 31, 2023 – 65,762 MBOE). Proved plus probable reserves decreased from 2023, with positive year over year changes to oil reserves outpaced by declines in natural gas and NGL reserves, primarily as a result of lower natural gas pricing impacting both activity on the royalty properties in 2024 and the future economics of certain natural gas plays using the pricing assumptions at December 31, 2024. The increase in oil proved plus probable reserves drove a 5% increase in the before-tax net present value of total proved plus probable reserves, discounted at 10%, to $1.93 billion (2023 – $1.84 billion). Changes to proved plus probable reserves comprised of additions related to third-party drilling and improved recovery (7,131 MBOE), technical additions (624 MBOE) and acquisitions (205 MBOE) less 2024 royalty production volumes of 9,218 MBOE and economic factors (851 MBOE). PrairieSky’s proved plus probable reserves include only developed assets (developed producing and developed non-producing properties) and do not include any future development capital on undeveloped lands.

    PrairieSky’s YE 2024 reserves were evaluated by independent reserves evaluators GLJ Ltd. The evaluation of PrairieSky’s royalty properties was done in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities. PrairieSky’s reserves information is included in the Company’s Annual Information Form for the year ended December 31, 2024, which is available on SEDAR+ at www.sedarplus.com and PrairieSky’s website at www.prairiesky.com.

    2025 INVESTOR DAY

    PrairieSky will be hosting an investor day on May 14, 2025, in Calgary, Alberta, where members of PrairieSky’s management team will present details on the Company’s oil and natural gas plays. The investor day will be webcast starting at 9:30 a.m. MDT (11:30 a.m. EDT). Interested parties may participate in the webcast which will be available through PrairieSky’s investor center at www.prairiesky.com. The webcast will be archived and accessible for replay after the event.

    NOTES AND REFERENCES

    (1) In this press release, the financial reporting periods are referred to as follows:  “Q4 2024” or “the quarter” refers to the three months ended December 31, 2024; “YE 2024” or “the year” refers to the year ended December 31, 2024; “Q4 2023” and “YE 2023” refer to the three months and year ended December 31, 2023, respectively.

    (2) For further details on the “Mannville Stack”, we refer you to PrairieSky’s most recent Corporate Presentation contained on PrairieSky’s website at www.prairiesky.com.

    (3) “enhanced oil recovery” means the extraction of additional crude oil, natural gas, and related substances from reservoirs through a production process other than natural depletion; includes both secondary and tertiary recovery processes such as pressure maintenance, cycling, waterflooding, thermal methods, chemical flooding, and using miscible and immiscible displacement fluids.
     

    Unless otherwise indicated or the context otherwise requires, terms used in this press release but not defined above are as defined in in the Company’s Annual Information Form for the year ended December 31, 2024 which is available on SEDAR+ at www.sedarplus.com and PrairieSky’s website at www.prairiesky.com.

    FINANCIAL AND OPERATIONAL INFORMATION

    The following table summarizes select operational and financial information of the Company for the periods noted. All dollar amounts are stated in Canadian dollars unless otherwise noted.

    A full version of PrairieSky’s management’s discussion and analysis (“MD&A”) and annual audited consolidated financial statements and notes thereto for the fiscal period ended December 31, 2024 is available on SEDAR+ at www.sedarplus.com and PrairieSky’s website at www.prairiesky.com.

      Three months ended Year ended
      December 31 September 30 December 31 December 31 December 31
    ($ millions, except per share or as otherwise noted) 2024 2024 2023 2024 2023
    FINANCIAL          
    Revenues 135.6   117.3   136.6   509.2   513.2  
               
    Funds from operations 99.0   92.4   111.1   380.5   382.5  
    Per share – basic and diluted(1) 0.41   0.39   0.46   1.59   1.60  
               
    Net earnings 60.2   47.3   67.4   215.3   227.6  
    Per share – basic and diluted(1) 0.25   0.20   0.28   0.90   0.95  
               
    Dividends declared(2) 59.9   59.7   57.3   239.0   229.2  
    Per share 0.25   0.25   0.24   1.00   0.96  
               
    Dividend payout ratio(3) 61 % 65 % 52 % 63 % 60 %
               
    Acquisitions – including non-cash consideration(4) 31.5   4.7   22.2   57.3   58.4  
    Net debt(5) 134.9   149.6   222.1   134.9   222.1  
               
    Shares outstanding          
    Shares outstanding at period end 239.0   239.0   239.0   239.0   239.0  
    Weighted average – basic and diluted 239.0   239.0   239.0   239.0   239.0  
               
    OPERATIONAL          
    Royalty production volumes          
    Crude oil (bbls/d) 13,317   12,733   12,844   13,125   12,438  
    NGL (bbls/d) 2,482   2,189   2,697   2,378   2,502  
    Natural gas (MMcf/d) 55.1   57.0   60.4   58.1   59.5  
    Royalty Production (BOE/d)(6) 24,982   24,422   25,608   25,186   24,857  
               
    Realized pricing          
    Crude oil ($/bbl) 81.66   85.90   83.27   84.12   82.52  
    NGL ($/bbl) 40.68   41.10   46.07   43.28   47.60  
    Natural gas ($/Mcf) 1.23   0.50   2.19   1.13   2.60  
    Total ($/BOE)(6) 50.30   49.63   51.78   50.53   52.31  
               
    Operating netback per BOE(7) 45.86   46.65   48.68   45.82   46.32  
               
    Funds from operations per BOE 43.07   41.12   47.16   41.28   42.16  
               
    Oil price benchmarks          
    West Texas Intermediate (WTI) (US$/bbl) 70.27   75.10   78.32   75.72   77.62  
    Edmonton light sweet ($/bbl) 94.90   97.77   99.72   97.55   100.46  
    Western Canadian Select (WCS) crude oil differential to WTI (US$/bbl) (12.55 ) (13.55 ) (21.89 ) (14.76 ) (18.65 )
               
    Natural gas price benchmarks          
    AECO Monthly Index ($/Mcf) 1.46   0.81   2.66   1.44   2.93  
    AECO Daily Index ($/Mcf) 1.48   0.69   2.30   1.46   2.64  
               
    Foreign exchange rate (US$/CAD$) 0.7147   0.7341   0.7343   0.7299   0.7410  
    (1) Funds from operations and net earnings per share are calculated using the weighted average number of basic and diluted common shares outstanding.
    (2) A dividend of $0.25 per share was declared on December 3, 2024. The dividend was paid on January 15, 2025 to shareholders of record as at December 31, 2024.
    (3) Dividend payout ratio is defined under the “Non-GAAP Measures and Ratios” section of this press release.
    (4) Excluding right-of-use asset additions.
    (5) See Note 16 “Capital Management” in the annual audited consolidated financial statements for the years ended December 31, 2024 and 2023 and Note 14 “Capital Management” in the interim condensed consolidated financial statements for the three and nine months ended September 30, 2024 and 2023.
    (6) See “Conversions of Natural Gas to BOE”.
    (7) Operating netback per BOE is defined under the “Non-GAAP Measures and Ratios” section of this press release.
     

    CONFERENCE CALL DETAILS

    A conference call to discuss the results will be held for the investment community on Tuesday, February 11, 2025, beginning at 6:30 a.m. MST (8:30 a.m. EST). To participate in the conference call, you are asked to register at one of the links provided below. Details regarding the call will be provided to you upon registration.

    Live call participant registration
    URL: https://register.vevent.com/register/BIec7e34fab05745059bfbdddfab97dbdb

    Live webcast participant registration (listen in only)
    URL: https://edge.media-server.com/mmc/p/xfyj3o3u

    FORWARD-LOOKING STATEMENTS

    This press release includes certain forward-looking information and forward-looking statements (collectively, “forward-looking statements”) which may include, but are not limited to PrairieSky’s future plans, current expectations and views of future operations and contains forward-looking statements that the Company believes allow readers to better understand the Company’s business and prospects. The use of any of the words “expect”, “expected to”, “anticipate”, “continue”, “estimate”, “objective”, “ongoing”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends”, “strategy” and similar expressions (including negative variations) are intended to identify forward-looking information or statements. Forward-looking statements contained in this press release include, but are not limited to, estimates regarding our expectations with respect to PrairieSky’s business and growth strategy and trajectory, including the benefits of the Company’s strategy of investing in low-cost oil plays and the optionality of owning fee mineral title acreage, the expectation that the production growth momentum in the Clearwater and Mannville Stack heavy oil plays will continue, the expectation that incremental well licensing in the Duvernay play will provide growth in high netback light oil volumes in 2025 and the expectation that, subject to approval of the Board of Directors, PrairieSky will declare a quarterly dividend of $0.26 per common share for shareholders of record on March 31, 2025.

    With respect to forward-looking statements contained in this press release, PrairieSky has made several assumptions including those described in detail in our MD&A and the Annual Information Form for the year ended December 31, 2024. Readers and investors are cautioned that the assumptions used in the preparation of such forward-looking information and statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. PrairieSky’s actual results, performance, or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. PrairieSky can give no assurance that any of the events anticipated will transpire or occur, or if any of them do, what benefits the Company will derive from them.

    By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond PrairieSky’s control, including the impact of general economic conditions including inflation, industry conditions, volatility of commodity prices, lack of pipeline capacity, currency fluctuations, increasing interest rates, imprecision of reserve estimates, competitive factors impacting royalty rates, environmental risks, taxation, regulation, changes in tax or other legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility, political and geopolitical instability, the imposition of any tariffs or other restrictive trade measures or countermeasures affecting trade between Canada and the United States and the Company’s ability to access sufficient capital from internal and external sources. In addition, PrairieSky is subject to numerous risks and uncertainties in relation to acquisitions. These risks and uncertainties include risks relating to the potential for disputes to arise with counterparties, and limited ability to recover indemnification under certain agreements. The foregoing and other risks, uncertainties and assumptions are described in more detail in PrairieSky’s MD&A, and the Annual Information Form for the year ended December 31, 2024 under the headings “Risk Management” and “Risk Factors”, respectively, each of which is available on SEDAR+ at www.sedarplus.com and PrairieSky’s website at www.prairiesky.com.

    Further, any forward-looking statement is made only as of the date of this press release, and PrairieSky undertakes no obligation to update or revise any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events, except as required by applicable securities laws. New factors emerge from time to time, and it is not possible for PrairieSky to predict all of these factors or to assess, in advance, the impact of each such factor on PrairieSky’s business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

    CONVERSIONS OF NATURAL GAS TO BOE

    To provide a single unit of production for analytical purposes, natural gas production and reserves volumes are converted mathematically to equivalent barrels of oil (BOE). PrairieSky uses the industry-accepted standard conversion of six thousand cubic feet of natural gas to one barrel of oil (6 Mcf = 1 bbl). The 6:1 BOE ratio is based on an energy equivalency conversion method primarily applicable at the burner tip. It does not represent a value equivalency at the wellhead and is not based on either energy content or current prices. While the BOE ratio is useful for comparative measures and observing trends, it does not accurately reflect individual product values and might be misleading, particularly if used in isolation. As well, given that the value ratio, based on the current price of crude oil to natural gas, is significantly different from the 6:1 energy equivalency ratio, using a 6:1 conversion ratio may be misleading as an indication of value.

    NON-GAAP MEASURES AND RATIOS

    Certain measures and ratios in this document do not have any standardized meaning as prescribed by IFRS and, therefore, are considered non-GAAP measures and ratios. These measures and ratios may not be comparable to similar measures and ratios presented by other issuers. These measures and ratios are commonly used in the oil and natural gas industry and by PrairieSky to provide potential investors with additional information regarding the Company’s liquidity and its ability to generate funds to conduct its business. Non-GAAP measures and ratios include operating netback per BOE and dividend payout ratio. Management’s use of these measures and ratios is discussed further below. Further information can be found in the Non-GAAP Measures and Ratios section of PrairieSky’s MD&A for the year ended December 31, 2024 and 2023.

    “Operating netback per BOE” represents the cash margin for products sold on a BOE basis. Operating netback per BOE is calculated by dividing the operating netback (royalty production revenue less production and mineral taxes and cash administrative expenses) by the average daily production volumes for the period. Operating netback per BOE is used to assess the cash generating and operating performance per unit of product sold and the comparability of the underlying performance between years. Operating netback per BOE measures are commonly used in the oil and natural gas industry to assess performance comparability. Refer to the Operating Results table on page 7 of PrairieSky’s MD&A for the year ended December 31, 2024 and 2023 and page 7 of PrairieSky’s MD&A for the three and nine months ended September 30, 2024 and 2023.

      Three months ended Year ended
      December 31 September 30 December 31 December 31 December 31
    ($ millions) 2024 2024 2023 2024 2023
    Cash from operating activities 91.3   109.6   128.0   379.9   318.9  
    Other revenue (20.0 ) (5.8 ) (14.6 ) (43.4 ) (38.6 )
    Other revenue – non-cash 8.2   –   –   8.2   0.5  
    Amortization of debt issuance costs (0.2 ) (0.1 ) (0.1 ) (0.5 ) (0.4 )
    Finance expense 2.3   2.7   3.9   12.2   17.5  
    Current tax expense 16.2   15.6   14.4   65.5   58.8  
    Interest on lease obligation (0.1 ) –   –   (0.1 ) –  
    Net change in non-cash working capital 7.7   (17.2 ) (16.9 ) 0.6   63.6  
    Operating netback 105.4   104.8   114.7   422.4   420.3  
                         

    “Operating Margin” represents operating netback as a percentage of royalty production revenue. Management uses this measure to demonstrate the comparability between the Company and production and exploration companies in the oil and natural gas industry as it shows net revenue generation from operations.

      Three months ended Year ended
      December 31 September 30 December 31 December 31 December 31
    ($ millions) 2024 2024 2023 2024 2023
    Royalty production revenue 115.6   111.5   122.0   465.8   474.6  
    Operating netback 105.4   104.8   114.7   422.4   420.3  
    Operating margin 91 % 94 % 94 % 91 % 89 %
                         

    “Dividend payout ratio” is calculated as dividends declared as a percentage of funds from operations. Payout ratio is used by dividend paying companies to assess dividend levels in relation to the funds generated and used in operating activities.

      Three months ended Year ended
      December 31 September 30 December 31 December 31 December 31
    ($ millions, except otherwise noted) 2024 2024 2023 2024 2023
    Funds from operations 99.0   92.4   111.1   380.5   382.5  
    Dividends declared 59.9   59.7   57.3   239.0   229.2  
    Dividend payout ratio 61 % 65 % 52 % 63 % 60 %
                         

    ABOUT PRAIRIESKY ROYALTY LTD.

    PrairieSky is a royalty company, generating royalty production revenues as oil and natural gas are produced from its properties. PrairieSky has a diverse portfolio of properties that have a long history of generating funds from operations and that represent the largest and most consolidated independently-owned fee simple mineral title position in Canada. PrairieSky’s common shares trade on the Toronto Stock Exchange under the symbol PSK.

    FOR FURTHER INFORMATION PLEASE CONTACT:

    Andrew M. Phillips
    President & Chief Executive Officer
    PrairieSky Royalty Ltd.
    (587) 293-4005

    Michael T. Murphy
    Vice-President, Geosciences & Capital Markets
    PrairieSky Royalty Ltd.
    (587) 293-4056

    Investor Relations
    (587) 293-4000
    www.prairiesky.com

    		 Pamela P. Kazeil
    Senior Vice-President, Finance & Chief Financial
    Officer
    PrairieSky Royalty Ltd.
    (587) 293-4089

    HTML available: https://www.globenewswire.com/NewsRoom/AttachmentNg/c0644401-3ea3-41c0-9565-4a5b3a92d061

    PDF available: http://ml.globenewswire.com/Resource/Download/4d86ab10-f760-4db0-9b30-279a327dab36

    The MIL Network –

  • MIL-OSI: Prospect Capital Announces Financial Results for Fiscal December 2024 Quarter

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Feb. 10, 2025 (GLOBE NEWSWIRE) — Prospect Capital Corporation (NASDAQ: PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our fiscal quarter ended December 31, 2024.

    FINANCIAL RESULTS

    All amounts in $000’s except per share amounts (on weighted average basis for period numbers) Quarter Ended Quarter Ended Quarter Ended
    December 31, 2024 September 30, 2024 December 31, 2023
           
    Net Investment Income (“NII”) $86,431 $89,877 $96,927
    NII per Common Share $0.20 $0.21 $0.24
    Interest as % of Total Investment Income 91.0% 94.0% 92.3%
           
    Net Income (Loss) Applicable to Common Shareholders $(30,993) $(165,069) $(51,436)
    Net Income (Loss) per Common Share $(0.07) $(0.38) $(0.13)
           
    Distributions to Common Shareholders $65,554 $77,358 $74,056
    Distributions per Common Share $0.15 $0.18 $0.18
    Cumulative Paid and Declared Distributions to Common Shareholders(1) $4,445,060 $4,384,924 $4,162,509
    Cumulative Paid and Declared Distributions per Common Share(1) $21.39 $21.25 $20.76
    Multiple of Net Asset Value (“NAV”) per Common Share(1) 2.7x 2.6x 2.3x
           
    Total Assets $7,234,855 $7,592,705 $7,781,214
    Total Liabilities $2,164,305 $2,469,590 $2,596,824
    Preferred Stock $1,630,514 $1,612,302 $1,500,741
    Net Asset Value (“NAV”) to Common Shareholders $3,440,036 $3,510,813 $3,683,649
    NAV per Common Share $7.84 $8.10 $8.92
           
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,879,738 $1,631,291 $1,187,740
           
    Net of Cash Debt to Total Assets 28.1% 29.7% 31.2%
    Net of Cash Debt to Equity Ratio(2) 39.8% 43.7% 46.2%
    Net of Cash Asset Coverage of Debt Ratio(2) 351% 329% 316%
           
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 91.9% 86.0% 78.4%
    Unsecured and Non-Recourse Debt as % of Total Debt 100.0% 100.0% 100.0%
    (1) Declared dividends are through the April 2025 distribution. February through April 2025 distributions are estimated based on shares outstanding as of 2/7/2025.
    (2)  Including our preferred stock as equity.
       

    CASH COMMON SHAREHOLDER DISTRIBUTION DECLARATION

    Prospect is declaring distributions to common shareholders as follows:

    Monthly Cash Common Shareholder Distribution Record Date Payment Date Amount ($ per share)
    February 2025 2/26/2025 3/20/2025 $0.0450
    March 2025 3/27/2025 4/17/2025 $0.0450
    April 2025 4/28/2025 5/20/2025 $0.0450

    Prospect expects to declare May 2025, June 2025, July 2025, and August 2025 distributions to common shareholders in May 2025.

    Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.39 per share to original common shareholders, representing 2.7 times December 2024 common NAV per share, aggregating $4.4 billion in cumulative distributions to all common shareholders.

    Since Prospect’s initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

    Drivers focused on optimizing our business include: (1) rotation of assets into and increased focus on our core business of first lien senior secured middle market loans, including sometimes with selected equity investments, (2) continued amortization of our subordinated structured notes portfolio, (3) prudent exits of equity linked assets (including real estate properties and corporate investments), (4) enhancement of portfolio company operating performance, and (5) greater utilization of our cost efficient revolving floating rate credit facility.

    In our middle market lending strategy, we recently provided a first lien senior secured term loan, a first lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear Holdings, LLC (“Taos Footwear”), aggregating $65 million, in collaboration with Taos Footwear’s founder and leadership team. Taos Footwear is a leading, innovative footwear brand providing customers with stylish and supportive footwear products. Taos Footwear is renowned for its supportive footbed that has reshaped the lifestyle footwear industry over the past 20 years.

    Examples of similar recent investments in our middle market lending strategy with both first lien senior secured debt and equity linked investments include Druid City Infusion, LLC (an infusion therapy services company with multiple locations across the South and Mountain West regions of the United States), Discovery Point Retreat, LLC (a rapidly growing detox and rehabilitation provider in North Texas), The RK Logistics Group, Inc. (a logistics service provider of turnkey inventory management and transportation services focused on technology and other sectors), and iQor Holdings, Inc. (a provider of customer experience services and business process outsourcing services).

    Our subordinated structured notes portfolio as of December 31, 2024 represented 5.8% of our investment portfolio, a reduction of 210 basis points from 7.9% as of December 31, 2023. Since the inception of this strategy in 2011 and through December 31, 2024, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times. The remaining subordinated structured notes portfolio had a trailing twelve month average cash yield of 24.4% and an annualized GAAP yield of 3.9% (in each case as of December 31, 2024, based on fair value, and excluding investments being redeemed), with the difference between cash yield and GAAP yield representing amortization of our cost basis.

    In our real estate property portfolio at National Property REIT Corp. (“NPRC”), since the inception of this strategy in 2012 and through December 31, 2024, we have exited 51 property investments (including two exits in the December 2024 quarter) that have earned an unlevered investment-level gross cash IRR of 24.3% and cash on cash multiple of 2.5 times. The remaining real estate property portfolio included 59 properties and paid us an income yield of 6.9% for the quarter ended December 31, 2024. Our aggregate investments in the related portfolio company had a $522 million unrealized gain as of December 31, 2024.

    Our senior management team and employees own 28.7% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or approximately $1.0 billion of our common equity as measured at NAV.

    PORTFOLIO UPDATE AND INVESTMENT ACTIVITY

    All amounts in $000’s except per unit amounts As of As of As of
    December 31, 2024 September 30, 2024 December 31, 2023
           
    Total Investments (at fair value) $7,132,928 $7,476,641 $7,631,846
    Number of Portfolio Companies 114 117 126
    Number of Industries 33 33 36
           
    First Lien Debt 64.9% 64.9% 58.7%
    Second Lien Debt 10.2% 11.1% 15.5%
    Subordinated Structured Notes 5.8% 6.2% 7.9%
    Unsecured Debt 0.1% 0.1% 0.1%
    Equity Investments 19.0% 17.7% 17.8%
    Mix of Investments with Underlying Collateral Security 80.9% 82.2% 82.1%
           
    Annualized Current Yield – All Investments 9.1% 9.7% 10.1%
    Annualized Current Yield – Performing Interest Bearing Investments 11.2% 11.8% 12.3%
           
    Non-Accrual Loans as % of Total Assets (1) 0.4% 0.5% 0.2%
           
    Middle-Market Loan Portfolio Company Weighted Average EBITDA(2) $101,644 $104,682 $109,719
    Middle-Market Loan Portfolio Company Weighted Average Net Leverage Ratio(2) 6.1x 5.7x 5.4x
    (1) Calculated at fair value.
    (2) For additional disclosure see “Middle-Market Loan Portfolio Company Weighted Average EBITDA and Net Leverage” at the end of the release.
       

    During the March 2025 (to date), December 2024, and September 2024 quarters, investment originations (including follow on investments in existing portfolio companies) and repayments were as follows:

    All amounts in $000’s Quarter Ended Quarter Ended Quarter Ended
    March 31, 2025
    (to date)    		 December 31, 2024 September 30, 2024
           
    Total Originations $110,724 $134,956 $290,639
           
    Middle-Market Lending 86.4% 67.7% 85.8%
    Middle-Market Lending / Buyouts —% 14.5% 6.1%
    Real Estate 13.6% 17.8% 7.8%
    Subordinated Structured Notes —% —% —%
           
    Total Repayments and Sales $19,480 $383,363 $282,328
           
    Originations, Net of Repayments and Sales $91,244 $(248,407) $8,311
           

    For additional disclosure see “Primary Origination Strategies” at the end of this release.

    CAPITAL AND LIQUIDITY

    Our multi-year, long-term laddered and diversified historical funding profile has included a $2.1 billion revolving credit facility (aggregate commitments with 48 current lenders), program notes, institutional bonds, convertible bonds, listed preferred stock, and program preferred stock. We have retired multiple upcoming maturities and, after we retire our upcoming $156.2 million convertible bond maturity due March 2025 (utilizing existing liquidity on hand), will have just $3.9 million remaining of debt maturing during calendar year 2025.

    On June 28, 2024, we completed an extension and upsizing of our Revolving Credit Facility (the “Revolving Credit Facility”), which extended the term of the Facility five years and the revolving period to four years from such date. The Facility includes a revolving period that extends through June 28, 2028, followed by an additional one-year amortization period. The interest rate for amounts drawn under the Facility remained unchanged from prior to the extension and upsizing and is one-month SOFR plus 2.05%.

    Our total unfunded eligible commitments to portfolio companies totals approximately $62 million, of which $29 million are considered at our sole discretion, representing 0.9% and 0.4% of our total assets as of December 31, 2024, respectively.

      As of As of
    All amounts in $000’s December 31, 2024 September 30, 2024
    Net of Cash Debt to Total Assets Ratio 28.1% 29.7%
    Net of Cash Debt to Equity Ratio(1) 39.8% 43.7%
    % of Interest-Bearing Assets at Floating Rates 79.8% 81.0%
    Unsecured Debt + Preferred Equity as % of Total Debt + Preferred Equity 91.9% 86.0%
         
    Balance Sheet Cash + Undrawn Revolving Credit Facility Commitments $1,879,738 $1,631,291
         
    Unencumbered Assets $4,763,601 $4,852,971
    % of Total Assets 65.8% 63.9%
    (1) Including our preferred stock as equity.
       

    The below table summarizes our December 2024 quarter term debt issuance and repurchase/repayment activity:

    All amounts in $000’s Principal Coupon Maturity
    Debt Issuances      
    Prospect Capital InterNotes® $41,759 6.625% – 7.75% January 2027 – December 2034
    Total Debt Issuances $41,759    
           
    Debt Repurchases/Repayments      
    Prospect Capital InterNotes® $1,187 2.25% – 6.63% May 2026 – December 2051
    2026 Notes $11,443 3.706% January 2026
    Total Debt Repurchases/Repayments $12,630    
           
    Net Debt Repurchases/Repayments $29,129    

    We currently have four separate unsecured debt issuances aggregating approximately $1.1 billion outstanding, not including our program notes, with laddered maturities extending through October 2028. At December 31, 2024, $644 million of program notes were outstanding with laddered maturities through March 2052.

    At December 31, 2024 our weighted average cost of unsecured debt financing was 4.49%, an increase of 0.07% from September 30, 2024, and an increase of 0.34% from December 31, 2023.

    We have raised significant capital from our existing $2.25 billion perpetual preferred stock offering programs. The preferred stock provides Prospect with a diversified source of programmatic capital without creating scheduled maturity risk due to the perpetual term of multiple preferred tranches.

    DIVIDEND REINVESTMENT PLAN

    We have adopted a dividend reinvestment plan (also known as our “DRIP”) that provides for reinvestment of our distributions on behalf of our shareholders, unless a shareholder elects to receive cash. On April 17, 2020, our board of directors approved amendments to the Company’s DRIP, effective May 21, 2020. These amendments principally provide for the number of newly-issued shares pursuant to the DRIP to be determined by dividing (i) the total dollar amount of the distribution payable by (ii) 95% of the closing market price per share of our stock on the valuation date of the distribution (providing a 5% discount to the market price of our common stock), a benefit to shareholders who participate.

    HOW TO PARTICIPATE IN OUR DIVIDEND REINVESTMENT PLAN

    Shares held with a broker or financial institution

    Many shareholders have been automatically “opted out” of our DRIP by their brokers. Even if you have elected to automatically reinvest your PSEC stock with your broker, your broker may have “opted out” of our DRIP (which utilizes DTC’s dividend reinvestment service), and you may therefore not be receiving the 5% pricing discount. Shareholders interested in participating in our DRIP to receive the 5% discount should contact their brokers to make sure each such DRIP participation election has been made through DTC. In making such DRIP election, each shareholder should specify to one’s broker the desire to participate in the “Prospect Capital Corporation DRIP through DTC” that issues shares based on 95% of the market price (a 5% discount to the market price) and not the broker’s own “synthetic DRIP” plan (if any) that offers no such discount. Each shareholder should not assume one’s broker will automatically place such shareholder in our DRIP through DTC. Each shareholder will need to make this election proactively with one’s broker or risk not receiving the 5% discount. Each shareholder may also consult with a representative of such shareholder’s broker to request that the number of shares the shareholder wishes to enroll in our DRIP be re-registered by the broker in the shareholder’s own name as record owner in order to participate directly in our DRIP.

    Shares registered directly with our transfer agent

    If a shareholder holds shares registered in the shareholder’s own name with our transfer agent (less than 0.1% of our shareholders hold shares this way) and wants to make a change to how the shareholder receives dividends, please contact our plan administrator, Equiniti Trust Company, LLC by calling (888) 888-0313 or by mailing Equiniti Trust Company LLC, PO Box 10027, Newark, New Jersey 07101.

    EARNINGS CONFERENCE CALL

    Prospect will host an earnings call on Tuesday, February 11, 2025 at 9:00 a.m. Eastern Time. Dial 888-338-7333. For a replay after February 11, 2025 visit www.prospectstreet.com or call 877-344-7529 with passcode 2146236.

    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
    (in thousands, except share and per share data)
     
      December 31, 2024   June 30, 2024
      (Unaudited)   (Audited)
    Assets      
    Investments at fair value:      
    Control investments (amortized cost of $3,323,998 and $3,280,415, respectively) $ 3,772,329   $ 3,872,575
    Affiliate investments (amortized cost of $11,735 and $11,594, respectively) 20,212   18,069
    Non-control/non-affiliate investments (amortized cost of $3,689,972 and $4,155,165, respectively) 3,340,387   3,827,599
    Total investments at fair value (amortized cost of $7,025,705 and $7,447,174, respectively) 7,132,928   7,718,243
    Cash and cash equivalents (restricted cash of $1,508 and $3,974, respectively) 59,760   85,872
    Receivables for:      
    Interest, net 18,428   26,936
    Other 1,914   1,091
    Deferred financing costs on Revolving Credit Facility 21,180   22,975
    Prepaid expenses 641   1,162
    Due from broker —   734
    Due from Affiliate 4   79
    Total Assets 7,234,855   7,857,092
    Liabilities      
    Revolving Credit Facility 301,522   794,796
    Public Notes (less unamortized discount and debt issuance costs of $10,075 and $12,433, respectively) 966,197   987,567
    Prospect Capital InterNotes® (less unamortized debt issuance costs of $9,299 and $7,999, respectively) 634,535   496,029
    Convertible Notes (less unamortized debt issuance costs of $166 and $649, respectively) 156,002   155,519
    Due to Prospect Capital Management 50,700   58,624
    Interest payable 23,214   21,294
    Dividends payable 20,076   25,804
    Due to Prospect Administration 5,070   5,433
    Accrued expenses 4,028   3,591
    Due to broker 2,762   10,272
    Other liabilities 199   242
    Total Liabilities 2,164,305   2,559,171
    Commitments and Contingencies      
    Preferred Stock, par value $0.001 per share (847,900,000 and 647,900,000 shares of preferred stock authorized, with 80,000,000 and 80,000,000 as Series A1, 80,000,000 and 80,000,000 as Series M1, 80,000,000 and 80,000,000 as Series M2, 20,000,000 and 20,000,000 as Series AA1, 20,000,000 and 20,000,000 as Series MM1, 1,000,000 and 1,000,000 as Series A2, 6,900,000 and 6,900,000 as Series A, 80,000,000 and 80,000,000 as Series A3, 80,000,000 and 80,000,000 as Series M3, 90,000,000 and 80,000,000 as Series A4, 90,000,000 and 80,000,000 as Series M4, 20,000,000 and 20,000,000 as Series AA2, 20,000,000 and 20,000,000 as Series MM2, 90,000,000 and 0 as Series A5, and 90,000,000 and 0 as Series M5, each as of December 31, 2024 and June 30, 2024; 27,968,443 and 28,932,457 Series A1 shares issued and outstanding, 1,309,907 and 1,788,851 Series M1 shares issued and outstanding, 0 and 0 Series M2 shares issued and outstanding, 0 and 0 Series AA1 shares issued and outstanding, 0 and 0 Series MM1 shares issued and outstanding, 163,000 and 164,000 Series A2 shares issued and outstanding, 5,251,157 and 5,251,157 Series A shares issued and outstanding, 24,476,826 and 24,810,648 Series A3 shares issued and outstanding, 2,732,317 and 3,351,101 Series M3 shares issued and outstanding, 2,192,884 and 1,401,747 Series M4 shares issued and outstanding, 7,012,458 and 3,766,166 Series A4 issued and outstanding, 0 and 0 Series AA2 shares issued and outstanding, 0 and 0 Series MM2 shares issued and outstanding, 0 and 0 Series A5 issued and outstanding, and 0 and 0 Series M5 issued and outstanding as of December 31, 2024 and June 30, 2024, respectively) at carrying value plus cumulative accrued and unpaid dividends 1,630,514   1,586,188
    Net Assets Applicable to Common Shares $ 3,440,036   $ 3,711,733
    Components of Net Assets Applicable to Common Shares and Net Assets, respectively      
    Common stock, par value $0.001 per share (1,152,100,000 and 1,352,100,000 common shares authorized; 438,851,578 and 424,846,963 issued and outstanding, respectively) 439   425
    Paid-in capital in excess of par 4,267,636   4,208,607
    Total distributable (loss) (828,039)   (497,299)
    Net Assets Applicable to Common Shares $ 3,440,036   $ 3,711,733
    Net Asset Value Per Common Share $ 7.84   $ 8.74
     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (in thousands, except share and per share data)
    (Unaudited)
     
      Three Months Ended December 31, Six Months Ended December 31,
      2024   2023 2024   2023
    Investment Income            
    Interest income (excluding payment-in-kind (“PIK”) interest income):            
    Control investments $ 57,386   $ 41,690 $ 109,768   $ 90,816
    Non-control/non-affiliate investments 87,159   105,749 182,069   212,105
    Structured credit securities 4,054   8,882 8,233   25,569
    Total interest income (excluding PIK interest income) 148,599   156,321 300,070   328,490
    PIK interest income:            
    Control investments 13,884   26,834 33,594   50,951
    Non-control/non-affiliate investments 6,315   11,476 19,749   17,637
    Total PIK Interest Income 20,199   38,310 53,343   68,588
    Total interest income 168,798   194,631 353,413   397,078
    Dividend income:            
    Control investments 4,387   — 4,387   227
    Affiliate investments —   — 141   1,307
    Non-control/non-affiliate investments 2,574   1,340 4,843   2,865
    Total dividend income 6,961   1,340 9,371   4,399
    Other income:            
    Control investments 8,416   11,616 15,383   41,361
    Non-control/non-affiliate investments 1,291   3,355 3,607   4,349
    Total other income 9,707   14,971 18,990   45,710
    Total Investment Income 185,466   210,942 381,774   447,187
    Operating Expenses            
    Base management fee 37,069   39,087 75,675   78,376
    Income incentive fee 13,632   18,325 29,312   43,942
    Interest and credit facility expenses 37,979   40,044 77,739   80,637
    Allocation of overhead from Prospect Administration 5,708   12,252 11,416   14,365
    Audit, compliance and tax related fees 80   479 1,800   1,496
    Directors’ fees 150   131 300   266
    Other general and administrative expenses 4,417   3,697 9,224   5,566
    Total Operating Expenses 99,035   114,015 205,466   224,648
    Net Investment Income 86,431   96,927 176,308   222,539
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments            
    Net realized gains (losses)            
    Control investments 3   — 6,370   (147)
    Non-control/non-affiliate investments (46,656)   123 (153,393)   (207,219)
    Net realized gains (losses) (46,653)   123 (147,023)   (207,366)
    Net change in unrealized gains (losses)            
    Control investments 30,419   (99,441) (143,829)   (117,235)
    Affiliate investments (1,446)   1,751 2,002   2,588
    Non-control/non-affiliate investments (69,053)   (27,051) (22,020)   188,535
    Net change in unrealized gains (losses) (40,080)   (124,741) (163,847)   73,888
    Net Realized and Net Change in Unrealized Gains (Losses) from Investments (86,733)   (124,618) (310,870)   (133,478)
    Net realized gains (losses) on extinguishment of debt 236   (53) 484   (144)
    Net Increase (Decrease) in Net Assets Resulting from Operations (66)   (27,744) (134,078)   88,917
    Preferred Stock dividends (26,228)   (24,070) (53,385)   (47,221)
    Net gain (loss) on redemptions of Preferred Stock (906)   378 1,398   879
    Gain (loss) on Accretion to Redemption Value of Preferred Stock (3,793)   — (9,997)   —
    Net Increase (Decrease) in Net Assets Resulting from Operations applicable to Common Stockholders $ (30,993)   $ (51,436) $ (196,062)   $ 42,575
     
    PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
    ROLLFORWARD OF NET ASSET VALUE PER COMMON SHARE
    (in actual dollars)
     
      Three Months Ended December 31,   Six Months Ended December 31,  
      2024   2023   2024   2023  
    Per Share Data                
    Net asset value per common share at beginning of period $         8.10   $         9.25   $         8.74   $         9.24  
    Net investment income(1) 0.20   0.24   0.41   0.54  
    Net realized and change in unrealized gains (losses)(1) (0.21)   (0.30)   (0.74)   (0.33)  
    Net increase (decrease) from operations (0.01)   (0.06)   (0.33)   0.21  
    Distributions of net investment income to preferred stockholders (0.06) (4) (0.07) (3) (0.12) (4) (0.12) (3)
    Distributions of capital gains to preferred stockholders — (4) — (3) — (4) — (3)
    Total distributions to preferred stockholders (0.06)   (0.07)   (0.12)   (0.12)  
    Net increase (decrease) from operations applicable to common stockholders (0.07)   (0.13)   (0.45)   0.10 (7)
    Distributions of net investment income to common stockholders (0.15) (4) (0.18) (3) (0.33) (4) (0.34) (3)
    Return of capital to common stockholders — (4) — (3) — (4) (0.02) (3)(6)
    Total distributions to common stockholders (0.15)   (0.18)   (0.33)   (0.36)  
    Common stock transactions(2) (0.04)   (0.02)   (0.13)   (0.06)  
    Net asset value per common share at end of period $         7.84   $         8.92   $         7.84 (7) $         8.92 (7)
    (1) Per share data amount is based on the basic weighted average number of common shares outstanding for the year/period presented (except for dividends to stockholders which is based on actual rate per share). Realized gains (losses) is inclusive of net realized losses (gains) on investments, realized losses (gains) from extinguishment of debt and realized gains (losses) from the repurchases and redemptions of preferred stock.
       
    (2) Common stock transactions include the effect of our issuance of common stock in public offerings (net of underwriting and offering costs), shares issued in connection with our common stock dividend reinvestment plan, common shares issued to acquire investments, common shares repurchased below net asset value pursuant to our Repurchase Program, and common shares issued pursuant to the Holder Optional Conversion of our 5.50% Preferred Stock and 6.50% Preferred Stock.
       
    (3) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2024.
       
    (4) Tax character of distributions is not yet finalized for the respective fiscal period and will not be finalized until we file our tax return for our tax year ending August 31, 2025.
       
    (5) Diluted net decrease from operations applicable to common stockholders was $0.07 for the three months ended December 31, 2024. Diluted net decrease from operations applicable to common stockholders was $0.13 for the three months ended December 31, 2023. Diluted net decrease from operations applicable to common stockholders was $0.45 for the six months ended December 31, 2024. Diluted net increase from operations applicable to common stockholders was $0.10 for the six months ended December 31, 2023.
       
    (6) The amounts reflected for the respective fiscal periods were updated based on tax information received subsequent to our Form 10-K filing for the year ended June 30, 2023 and our Form 10-Q filing for December 31, 2023. Certain reclassifications have been made in the presentation of prior period amounts.
       
    (7) Does not foot due to rounding.
       

    MIDDLE-MARKET LOAN PORTFOLIO COMPANY WEIGHTED AVERAGE EBITDA, NET LEVERAGE AND INTERNAL RATE OF RETURN

    Middle-Market Loan Portfolio Company Weighted Average Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Loan Portfolio Company Weighted Average EBITDA (“Middle-Market Portfolio EBITDA”) provide clarity into the underlying capital structure of PSEC’s middle-market loan portfolio investments and the likelihood that such portfolio will make interest payments and repay principal.

    Middle-Market Portfolio Net Leverage reflects the net leverage of each of PSEC’s middle-market loan portfolio company debt investments, weighted based on the current fair market value of such debt investments. The net leverage for each middle-market loan portfolio company is calculated based on PSEC’s investment in the capital structure of such portfolio company, with a maximum limit of 10.0x adjusted EBITDA. This calculation excludes debt subordinate to PSEC’s position within the capital structure because PSEC’s exposure to interest payment and principal repayment risk is limited beyond that point. Additionally, subordinated structured notes, rated secured structured notes, real estate investments, investments for which EBITDA is not available, and equity investments, for which principal repayment is not fixed, are also not included in the calculation. The calculation does not exceed 10.0x adjusted EBITDA for any individual investment because 10.0x captures the highest level of risk to PSEC. Middle-Market Portfolio Net Leverage provides PSEC with some guidance as to PSEC’s exposure to the interest payment and principal repayment risk of PSEC’s middle-market loan portfolio. PSEC monitors its Middle-Market Portfolio Net Leverage on a quarterly basis.

    Middle-Market Portfolio EBITDA is used by PSEC to supplement Middle-Market Portfolio Net Leverage and generally indicates a portfolio company’s ability to make interest payments and repay principal. Middle-Market Portfolio EBITDA is calculated using the EBITDA of each of PSEC’s middle-market loan portfolio companies, weighted based on the current fair market value of the related investments. The calculation provides PSEC with insight into profitability and scale of the portfolio companies within PSEC’s middle-market loan portfolio.

    These calculations include addbacks that are typically negotiated and documented in the applicable investment documents, including but not limited to transaction costs, share-based compensation, management fees, foreign currency translation adjustments, and other nonrecurring transaction expenses.

    Together, Middle-Market Portfolio Net Leverage and Middle-Market Portfolio EBITDA assist PSEC in assessing the likelihood that PSEC will timely receive interest and principal payments. However, these calculations are not meant to substitute for an analysis of PSEC’s underlying portfolio company debt investments, but to supplement such analysis.

    Internal Rate of Return (“IRR”) is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.

    PRIMARY ORIGINATION STRATEGIES

    Lending to Companies – We make directly-originated, agented loans to companies, including companies which are controlled by private equity sponsors and companies that are not controlled by private equity sponsors (such as companies that are controlled by the management team, the founder, a family or public shareholders). This debt can take the form of first lien, second lien, unitranche or unsecured loans. These loans typically have equity subordinate to our loan position. We may also purchase selected equity investments in such companies. In addition to directly-originated, agented loans, we also invest in senior and secured loans syndicated loans and high yield bonds that have been sold to a club or syndicate of buyers, both in the primary and secondary markets. These investments are often purchased with a long term, buy-and-hold outlook, and we often look to provide significant input to the transaction by providing anchoring orders.

    Lending to Companies and Purchasing Controlling Equity Positions in Such Companies – This strategy involves purchasing senior and secured yield-producing debt and controlling equity positions in operating companies across various industries. We believe this strategy provides enhanced certainty of closing to sellers and the opportunity for management to continue on in their current roles. These investments are often structured in tax-efficient partnerships, enhancing returns.

    Purchasing Controlling Equity Positions and Lending to Real Estate Companies – We purchase debt and controlling equity positions in tax-efficient real estate investment trusts (“REIT” or “REITs”). The real estate investments of National Property REIT Corp. (“NPRC”) are in various classes of developed and occupied real estate properties that generate current yields, including multi-family properties, student housing and senior living. NPRC seeks to identify properties that have historically significant occupancy rates and recurring cash flow generation. NPRC generally co-invests with established and experienced property management teams that manage such properties after acquisition. Additionally, NPRC makes investments in rated secured structured notes (primarily debt of structured credit). NPRC also purchases loans originated by certain consumer loan facilitators. It purchases each loan in its entirety (i.e., a “whole loan”). The borrowers are consumers, and the loans are typically serviced by the facilitators of the loans.

    Investing in Structured Credit – We make investments in structured credit, often taking a significant position in subordinated structured notes (equity). The underlying portfolio of each structured credit investment is diversified across approximately 100 to 200 broadly syndicated loans and does not have direct exposure to real estate, mortgages, or consumer-based credit assets. The structured credit portfolios in which we invest are managed by established collateral management teams with many years of experience in the industry.

    About Prospect Capital Corporation

    Prospect is a business development company lending to and investing in private businesses. Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.

    Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

    Caution Concerning Forward-Looking Statements

    This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.

    For additional information, contact:

    Grier Eliasek, President and Chief Operating Officer
    grier@prospectcap.com
    Telephone (212) 448-0702

    The MIL Network –

  • MIL-OSI: Astera Labs Announces Financial Results for the Fourth Quarter of Fiscal Year 2024

    Source: GlobeNewswire (MIL-OSI)

    • Record quarterly revenue of $141.1 million, up 25% QoQ and up 179% YoY
    • Fiscal 2024 record revenue of $396.3 million, up 242% versus the prior year
    • Ramping across diverse set of customers and platforms with four product families in fiscal 2025

    SANTA CLARA, Calif., Feb. 10, 2025 (GLOBE NEWSWIRE) — Astera Labs, Inc. (Nasdaq: ALAB), a global leader in semiconductor-based connectivity solutions for cloud and AI infrastructure, today announced preliminary financial results for the fourth quarter and full fiscal year 2024, ended December 31, 2024.

    “Astera Labs delivered strong Q4 results, with revenue growing 25% versus the previous quarter, and capped off a stellar 2024 with 242% revenue growth year-over-year,” said Jitendra Mohan, Astera Labs’ Chief Executive Officer. “The revenue growth in 2024 was largely driven by Aries PCIe Retimer products, with Taurus Smart Cable Modules for Ethernet coming in strongly in Q4. We expect 2025 to be a breakout year as we enter a new phase of growth driven by revenue from all four of our product families to support a diverse set of customers and platforms. This includes our flagship Scorpio Fabric products for head-node PCIe connectivity and backend AI accelerator scale-up clustering.”

    Fourth Quarter of Fiscal 2024 Financial Highlights

    GAAP Financial Results:  

    • Revenue of $141.1 million, up 25% sequentially and up 179% year-over-year
    • GAAP gross margin of 74.0%
    • GAAP operating income of $0.1 million
    • GAAP operating margin of 0.1%
    • GAAP net income of $24.7 million
    • GAAP diluted net earnings per share of $0.14

    Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

    • Non-GAAP gross margin of 74.1%
    • Non-GAAP operating income of $48.4 million
    • Non-GAAP operating margin of 34.3%
    • Non-GAAP net income of $66.5 million
    • Non-GAAP diluted earnings per share of $0.37

    Full Year Fiscal 2024 Financial Highlights

    GAAP Financial Results:  

    • Revenue of $396.3 million, up 242% year-over-year
    • GAAP gross margin of 76.4%
    • GAAP operating loss of $116.1 million
    • GAAP operating margin of (29.3%)
    • GAAP net loss of $83.4 million
    • GAAP diluted net loss per share of $0.64

    Non-GAAP and Non-GAAP Financial Results (excluding the impact of stock-based compensation expense and the income tax effects of non-GAAP adjustments):

    • Non-GAAP gross margin of 76.6%
    • Non-GAAP operating income of $119.6 million
    • Non-GAAP operating margin of 30.2%
    • Non-GAAP net income of $143.3 million
    • Pro forma non-GAAP diluted earnings per share of $0.84

    Full Year Fiscal 2024 Business Highlights

    • Introduced new portfolio of Scorpio Smart Fabric Switches purpose-built for AI infrastructure at cloud-scale. The Scorpio Smart Fabric Switch family features two application-specific product lines with a multi-generational roadmap, including the P-Series for GPU-to-CPU/NIC/SSD PCIe Gen 6 connectivity and the X-Series for platform-specific, back-end AI accelerator clustering. Scorpio is currently shipping in pre-production quantities.
    • Joined the Ultra Accelerator Link Consortium as a promoting member on the Board of Directors. UALink technology will be used to enable efficient high-speed scale-up connectivity between AI accelerators within large and growing cluster sizes for AI workloads. Astera Labs is well positioned to quickly contribute to this new and compelling industry initiative to develop and advance UALink technology.
    • Demonstrated the industry’s first end-to-end PCIe optical connectivity link to provide extended reach for larger, disaggregated GPU clusters. PCIe over optics expands Astera Labs’ widely deployed and field-tested Aries family of Smart DSP retimers and Smart Cable Modules (SCMs) to deliver robust PCIe and CXL connectivity in chip-to-chip, box-to-box, and rack-to-rack topologies throughout the data center.
    • Expanded the widely deployed and field-tested Aries PCIe/CXL Smart DSP Retimer portfolio with the introduction and initial shipment of Aries 6 Retimers, the industry’s lowest power PCIe 6.x/CXL 3.x Retimer solution, to achieve higher bandwidth and extended reach across complex AI and compute topologies.
    • Shipped Aries PCIe/CXL Smart Cable Modules for Active Electrical Cable applications to enable multi-rack GPU clustering and low-latency memory fabric connectivity within AI infrastructure. The solution drives seven meters of reach over flexible copper cables to seamlessly and affordably interconnect clusters of GPUs across rack enclosures.
    • Showcased the first public demonstration of end-to-end interoperability between a PCIe 6.x Switch and a PCIe 6.x SSD at DesignCon 2025. The PCIe 6.x link-up was between an Astera Labs Scorpio P-Series Fabric Switch and Micron’s PCIe 6.x SSDs and showcased remarkable sequential read speeds exceeding 26GB/s.

    First Quarter of Fiscal 2025 Financial Outlook

    Based on current business trends and conditions, Astera Labs estimates the following:

    GAAP Financial Outlook:

    • Revenue within a range of $151 million to $155 million
    • GAAP gross margin of approximately 74%
    • GAAP operating expenses within a range of approximately $113 million to $114 million
    • GAAP tax expense of approximately $3 million
    • GAAP diluted earnings per share within a range of approximately $0.03 to $0.04 on weighted-average diluted shares outstanding of approximately 180 million

    Non-GAAP Financial Outlook (excluding the impact of approximately $47 million of stock-based compensation and including approximately $3 million of additional income taxes):

    • Non-GAAP gross margin of approximately 74%
    • Non-GAAP operating expenses within a range of approximately $66 million to $67 million
    • Non-GAAP tax rate of approximately 10%
    • Non-GAAP diluted earnings per share within a range of approximately $0.28 to $0.29 on non-GAAP weighted-average diluted shares outstanding of approximately 180 million

    Earnings Webcast and Conference Call
    Astera Labs will host a conference call to review its financial results for the fourth quarter and full year of fiscal 2024 and to discuss our financial outlook today at 1:30 p.m. Pacific Time. Interested parties may join the conference call by dialing 1-800-715-9871 and using conference ID 5908687. The call will also be webcast and can be accessed at the Astera Labs website at https://ir.asteralabs.com/. The webcast will be recorded and available for replay on the company’s website for the next six months.

    Discussion of Non-GAAP Financial Measures
    We use certain non-GAAP financial measures to supplement the performance measures in our consolidated financial statements, which are presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the closest GAAP measure can be found later in this release. These non-GAAP financial measures include non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP diluted earnings (loss) per share, and non-GAAP weighted-average share count. We use these non-GAAP financial measures for financial and operational decision-making and as a means to assist us in evaluating period-to-period comparisons. By excluding certain items that may not be indicative of our recurring core operating results, we believe that, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income (loss), non-GAAP operating margin, non-GAAP tax rate, non-GAAP net income (loss), non-GAAP pro forma diluted earnings (loss) per share, and non-GAAP pro forma weighted-average share count provide meaningful supplemental information regarding our performance. Accordingly, we believe these non-GAAP financial measures are useful to investors and others because they allow for additional information with respect to financial measures used by management in its financial and operational decision-making and they may be used by our institutional investors and the analyst community to help them analyze the health of our business. However, there are a number of limitations related to the use of non-GAAP financial measures, and these non-GAAP measures should be considered in addition to, not as a substitute for or in isolation from, our financial results prepared in accordance with GAAP. Other companies, including companies in our industry, may calculate these non-GAAP financial measures differently or not at all, which reduces their usefulness as comparative measures.

    No reconciliation is provided with respect to the forward-looking non-GAAP financial measures included in our non-GAAP financial outlook, as the GAAP measures are not accessible on a forward-looking basis. As a result, we cannot reliably predict all necessary components or their impact to reconcile such financial measures without unreasonable effort. The events necessitating a non-GAAP adjustment are inherently unpredictable and may have a significant impact on our future GAAP financial results.

    We adjust the following items from one or more of our non-GAAP financial measures:

    Stock-based compensation expense
    We exclude stock-based compensation expense, which is a non-cash expense, from certain of our non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance. In particular, companies calculate non-cash stock-based compensation expense using a variety of valuation methodologies and subjective assumptions. Moreover, stock-based compensation expense is a non-cash charge that can vary significantly from period to period for reasons that are unrelated to our core operating performance, and therefore excluding this item provides investors and other users of our financial information with information that allows meaningful comparisons of our business performance across periods.

    Employer payroll taxes related to stock-based compensation resulting from our IPO
    We exclude employer payroll taxes related to the time-based vesting and net settlement of restricted stock units in connection with our initial public offering (the “IPO”), because this does not correlate to the operation of our business. We believe that excluding this item provides meaningful supplemental information regarding operational performance given the amount of employer payroll tax-related items on employee stock transactions was immaterial prior to our IPO.

    Income tax effect
    This represents the impact of the non-GAAP adjustments on an after-tax basis and one-off discrete tax adjustments that are unrelated to our core operating performance in connection with the presentation of non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share. This approach is designed to enhance investors’ ability to understand the impact of our non-GAAP tax expense on our current operations, provide improved modeling accuracy, and substantially reduce fluctuations caused by GAAP to non-GAAP adjustments.

    Non-GAAP pro forma weighted-average shares to compute non-GAAP pro forma net income (loss) per share
    We present non-GAAP pro forma weighted-average shares, assuming our redeemable convertible preferred stock is converted from the beginning of each respective periods presented, to provide meaningful supplemental information regarding EPS trend on a consistent basis. All of our outstanding redeemable preferred stock converted into the equivalent number of shares of common stock in connection with our IPO.

    Cautionary Note Regarding Forward-Looking Statements
    This press release contains forward-looking statements based on Astera Labs’ current expectations. The words “believe”, “estimate”, “expect”, “intend”, “may”, “anticipate”, “plan”, “project”, “will”, and similar phrases as they relate to Astera Labs are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Astera Labs and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These forward-looking statements include but are not limited to, statements regarding our future operating results, financial position and guidance, including for the first quarter of fiscal 2025, our business strategy and plans, our objectives for future operations, our development or delivery of new or enhanced products and anticipated results of those products for our customers, our competitive positioning, including to meet the connectivity market opportunity in the future and initiative to advance UALink technology, technological capabilities and plans, our plans to add R&D talent and strategic IP blocks, and macroeconomic trends in cloud and AI infrastructure. A variety of risks and factors that are beyond our control could cause actual results to differ materially from those in the forward-looking statements including, without limitation: the competitive and cyclical nature of the semiconductor industry; the concentration of our customer base; the changes in demand for AI; the macroeconomic environment; risks that demand and the supply chain may be adversely affected, including by the imposition of tariffs by the United States and any corresponding retaliatory tariffs, changes in political policies, military conflict (such as between Russia/Ukraine and Israel/Hamas), terrorism, sanctions or other geopolitical events globally (including conflict between Taiwan and China); quarterly fluctuations in revenues and operating results; difficulties developing new products that achieve market acceptance; risks associated with managing international activities (including trade barriers, particularly with respect to China); absence of long-term commitments from customers; risks that Astera Labs may not be able to manage strains associated with its growth; credit risks associated with its accounts receivable; stock price volatility; information technology risks, including cyber-attacks against Astera Labs’ products and its networks; and other risks and uncertainties that are detailed under the caption “Risk Factors” and elsewhere in our Annual Report on 10-K that will be filed with the Securities and Exchange Commission (the “SEC”) and in Quarterly Reports on Form 10-Q filed with the SEC and the other SEC filings and reports Astera Labs may make from time to time.  Moreover, we operate in a very competitive and rapidly changing environment, and new risks may emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor(s) may cause actual results or outcomes to differ materially from those contained in any forward-looking statements we may make. Accordingly, you should not rely on any of the forward-looking statements. Astera Labs disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.

    About Astera Labs
    Our PCIe, CXL and Ethernet semiconductor-based connectivity solutions are purpose-built to unleash the full potential of accelerated computing at cloud-scale. Inspired by trusted partnerships with hyperscalers and the data center ecosystem, we are an innovation leader of products that are customizable, interoperable, and reliable. Discover how we are transforming AI and modern data-driven applications at www.asteralabs.com.

     
    ASTERA LABS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
    (In thousands)
     
        December 31,
    2024    		   December 31,
    2023
    Assets        
    Current assets        
    Cash and cash equivalents   $ 79,551     $ 45,098  
    Marketable securities     834,750       104,215  
    Accounts receivable, net     38,811       8,335  
    Inventory     43,215       24,095  
    Prepaid expenses and other current assets     16,652       4,064  
    Total current assets     1,012,979       185,807  
    Property and equipment, net     35,651       4,712  
    Other assets     5,878       5,773  
    Total assets   $ 1,054,508     $ 196,292  
             
    Liabilities, Redeemable Convertible Preferred Stock and Stockholders’ Equity (Deficit)
    Current liabilities        
    Accounts payable   $ 26,918     $ 6,337  
    Accrued expenses and other current liabilities     59,624       28,742  
    Total current liabilities     86,542       35,079  
    Other liabilities     3,167       3,787  
    Total liabilities     89,709       38,866  
    Commitments and contingencies        
    Redeemable convertible preferred stock     –       255,127  
    Stockholders’ equity (deficit)        
    Common stock     16       4  
    Additional paid-in capital     1,173,153       27,411  
    Accumulated other comprehensive income     426       259  
    Accumulated deficit     (208,796 )     (125,375 )
    Total stockholders’ equity (deficit)     964,799       (97,701 )
    Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)   $ 1,054,508     $ 196,292  
     
    ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
    (In thousands, except per share amounts)
     
        Three Months Ended   Years Ended
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Revenue   $ 141,096     $ 113,086     $ 50,514     $ 396,290     $ 115,794  
    Cost of revenue     36,648       25,209       11,489       93,591       35,967  
    Gross profit     104,448       87,877       39,025       302,699       79,827  
                         
    Operating expenses                    
    Research and development     56,524       50,659       19,654       200,830       73,407  
    Sales and marketing     22,818       23,248       4,995       123,652       19,992  
    General and administrative     24,962       22,866       5,356       94,283       15,925  
    Total operating expenses     104,304       96,773       30,005       418,765       109,324  
    Operating income (loss)     144       (8,896 )     9,020       (116,066 )     (29,497 )
    Interest income     10,558       10,912       1,674       34,288       6,549  
    Income (loss) before income taxes     10,702       2,016       10,694       (81,778 )     (22,948 )
    Income tax (benefit) provision     (14,011 )     9,609       (3,631 )     1,643       3,309  
    Net income (loss)   $ 24,713     $ (7,593 )   $ 14,325     $ (83,421 )   $ (26,257 )
                         
    Net income (loss) per share attributable to common stockholders:        
    Basic   $ 0.15     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    Diluted   $ 0.14     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    Weighted-average shares used in calculating net income (loss) per share attributable to common stockholders:                    
    Basic     159,895       156,831       38,627       131,262       37,131  
    Diluted     177,559       156,831       47,636       131,262       37,131  
     
    ASTERA LABS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
    (In thousands)
     
        Years Ended December 31,
          2024       2023  
    Cash flows from operating activities        
    Net loss   $ (83,421 )   $ (26,257 )
    Adjustments to reconcile net loss to net cash provided by (used in) operating activities        
    Stock-based compensation     234,588       10,679  
    Depreciation     3,154       1,781  
    Non-cash operating lease expense     2,428       1,232  
    Warrants contra revenue     1,395       805  
    Inventory write-downs     168       10,343  
    Accretion of discounts on marketable securities     (8,341 )     (1,624 )
    Changes in operating assets and liabilities:        
    Accounts receivable, net     (30,480 )     2,386  
    Inventory     (19,287 )     (5,564 )
    Prepaid expenses and other assets     (13,031 )     (720 )
    Accounts payable     20,887       (4,264 )
    Accrued expenses and other liabilities     31,018       (167 )
    Operating lease liability     (2,402 )     (1,346 )
    Net cash provided by (used in) operating activities     136,676       (12,716 )
             
    Cash flows from investing activities        
    Purchases of property and equipment     (34,245 )     (2,761 )
    Purchases of marketable securities     (930,575 )     (126,225 )
    Sales and maturities of marketable securities     208,665       111,214  
    Other investing activities     (1,413 )     —  
    Net cash used in investing activities     (757,568 )     (17,772 )
             
    Cash flows from financing activities        
    Proceeds from issuance of common stock in connection with initial public offering, net of underwriting discounts and commissions     672,198       —  
    Payment of deferred offering costs     (4,801 )     (1,407 )
    Proceeds from exercises of stock options     5,458       1,115  
    Proceeds from employee stock purchase plan     4,160       —  
    Tax withholding related to net share settlements of restricted stock units     (20,111 )     —  
    Repurchase of common stock upon termination     (1,066 )     (210 )
    Net cash provided by (used in) financing activities     655,838       (502 )
    Net increase (decrease) in cash, cash equivalents, and restricted cash     34,946       (30,990 )
    Cash, cash equivalents, and restricted cash        
    Beginning of the period     45,098       76,088  
    End of the period   $ 80,044     $ 45,098  
     
    ASTERA LABS, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited)
    (In thousands, except percentages and per share amounts)
     
        Three Months Ended   Years Ended
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    GAAP gross profit   $ 104,448     $ 87,877     $ 39,025     $ 302,699     $ 79,827  
    Stock-based compensation expense upon IPO (1)     —       —       —       516       —  
    Stock-based compensation expense     131       102       8       329       24  
    Non-GAAP gross profit   $ 104,579     $ 87,979     $ 39,033     $ 303,544     $ 79,851  
                         
    GAAP gross margin     74.0 %     77.7 %     77.3 %     76.4 %     68.9 %
    Stock-based compensation expense upon IPO (1)     —       —       —       0.1       —  
    Stock-based compensation expense     0.1       0.1       —       0.1       0.1  
    Non-GAAP gross margin     74.1 %     77.8 %     77.3 %     76.6 %     69.0 %
                         
    GAAP operating income (loss)   $ 144     $ (8,896 )   $ 9,020     $ (116,066 )   $ (29,497 )
    Stock-based compensation expense upon IPO (1)     —       —       —       88,873       —  
    Stock-based compensation expense     48,218       45,535       3,299       145,715       10,679  
    Employer payroll tax related to stock-based compensation from IPO (2)     —       —       —       1,072       —  
    Non-GAAP operating income (loss)   $ 48,362     $ 36,639     $ 12,319     $ 119,594     $ (18,818 )
                         
    GAAP operating margin     0.1 %   (7.9)%     17.9 %   (29.3)%   (25.5)%
    Stock-based compensation expense upon IPO (1)     —       —       —       22.4       —  
    Stock-based compensation expense     34.2       40.3       6.5       36.8       9.2  
    Employer payroll tax related to stock-based compensation from IPO (2)     —       —       —       0.3       —  
    Non-GAAP operating margin     34.3 %     32.4 %     24.4 %     30.2 %   (16.3)%
                         
    GAAP net income (loss)   $ 24,713     $ (7,593 )   $ 14,325     $ (83,421 )   $ (26,257 )
    Stock-based compensation expense upon IPO (1)     —       —       —       88,873       —  
    Stock-based compensation expense     48,218       45,535       3,299       145,715       10,679  
    Employer payroll tax related to stock-based compensation from IPO (2)     —       —       —       1,072       —  
    Income tax effect (3)     (6,439 )     2,340       —       (8,910 )     —  
    Non-GAAP net income (loss)   $ 66,492     $ 40,282     $ 17,624     $ 143,329     $ (15,578 )
                         
    Net income (loss) per share attributable to common stockholders:        
    GAAP – basic   $ 0.15     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    GAAP – diluted   $ 0.14     $ (0.05 )   $ —     $ (0.64 )   $ (0.71 )
    Non-GAAP pro forma – diluted   $ 0.37     $ 0.23     $ 0.12     $ 0.84     $ (0.12 )
                         
    Weighted average shares used to compute net income (loss) per share attributable to common stockholders:        
    GAAP – basic     159,895       156,831       38,627       131,262       37,131  
    GAAP – diluted     177,559       156,831       47,636       131,262       37,131  
    Non-GAAP pro forma – diluted (4)     177,559       173,832       138,527       168,913       128,022  

    ____________________

    (1) Stock-based compensation expense recognized in connection with the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

    (2) Employer payroll taxes related to the time-based vesting and settlement of RSUs, that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.

    (3) Income tax effect is calculated based on the tax laws in the jurisdictions in which we operate and is calculated to exclude the impact of stock-based compensation expense and one-off discrete tax adjustments that are unrelated to our core operating performance. For the three months ended December 31, 2024 and September 30, 2024, the non-GAAP tax benefit rate was 13% and tax expense rate of 15%, respectively. The adjustments for the three months ended December 31, 2023 were not material. For the years ended December 31, 2024, the non-GAAP tax expense rate was 7% compared to a tax benefit rate of 27% for the year ended December 31, 2023.

    (4) We present the non-GAAP pro forma weighted average shares to provide meaningful supplemental information of comparable shares for each periods presented. The non-GAAP pro forma weighted average shares is calculated as follows:

        Three Months Ended   Years Ended
        December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Shares used to compute GAAP net income (loss) per share attributable to common stockholders – diluted   177,559   156,831   47,636   131,262   37,131
    Weighted average effect of the assumed conversion of redeemable convertible preferred stock from the beginning of the periods   —   —   90,891   19,165   90,891
    Effect of dilutive equivalent shares   —   17,001   —   18,486   —
    Shares used to compute non-GAAP pro forma net income (loss) per share- diluted   177,559   173,832   138,527   168,913   128,022

      

     
    ASTERA LABS, INC.SUPPLEMENTAL FINANCIAL INFORMATIONSTOCK-BASED COMPENSATION EXPENSE (Unaudited)
    (In thousands)
     
      Three Months Ended   Years Ended
      December 31,
    2024    		   September 30,
    2024    		   December 31,
    2023    		   December 31,
    2024    		   December 31,
    2023
    Cost of revenue $ 131   $ 102   $ 8   $ 845   $ 24
    Research and development   18,808     14,641     2,303     76,427     7,360
    Sales and marketing   14,671     16,200     681     95,887     2,067
    General and administrative   14,608     14,592     307     61,429     1,228
    Total stock-based compensation expense (1) $ 48,218   $ 45,535   $ 3,299   $ 234,588   $ 10,679

    ____________________

    (1) Stock-based compensation expense recognized during the year ended December 31, 2024 included $88.9 million of cumulative stock-based compensation expense related to the time-based vesting and settlement of RSUs that had previously met the time-based vesting condition and for which the liquidity event vesting condition was satisfied in connection with our IPO.


    IR CONTACT:     Leslie Green
    leslie.green@asteralabs.com

    The MIL Network –

  • MIL-OSI USA: Grassley-Jordan Statement on Efforts to Eliminate DOJ Weaponization

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Sen. Chuck Grassley (R-Iowa) and Rep. Jim Jordan (R-Ohio), Chairmen of the Senate and House Judiciary Committees, today released a joint statement regarding the Justice Department (DOJ)’s newly-formed “Weaponization Working Group.”

    “If you’ve followed our oversight, it shouldn’t come as news to you that political infection has saturated the DOJ and FBI in recent years. Among many instances of political weaponization, we’ve repeatedly raised concerns about Jack Smith’s investigations and their political origins, baseless attacks on Catholics practicing their faith, the FBI’s Foreign Influence Task Force engaging in political influence, rampant whistleblower retaliation and other politically-infected conduct by the DOJ and FBI. It is welcome news that the Justice Department is now working to right the ship and seek accountability for prior improper conduct. This is a common sense and much needed approach. Our oversight work will continue at full speed to ensure that the blindfold is put back on Lady Justice.”

    -30-

    MIL OSI USA News –

  • MIL-OSI Security: Former Keshena Resident Receives 115-Month Prison Sentence for Serious Domestic Violence Offense on Menominee Indian Reservation

    Source: Office of United States Attorneys

    Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 6, 2025, John V. Miller, Jr. (age: 43), an enrolled member of the Menominee Indian Tribe of Wisconsin and former resident of Keshena, received a 115-month prison sentence following convictions for strangulation and assault resulting in serious bodily injury.

    The sentence, imposed by Senior United States District Judge William C. Griesbach, was the result of guilty pleas entered by the defendant on September 27, 2024. Miller will also face three years of supervised release once he completes his sentence.

    According to publicly filed court documents, Miller severely injured his ex-wife during an assault in a wooded area outside Keshena, which is a community on the Menominee Indian Reservation. Miller kicked, struck, and punched the victim, who suffered a facial fracture and severe bruising and swelling. Miller also strangled the victim to the point of unconsciousness before leaving her in the woods. The victim awoke and found her way to a nearby mobile home, where the resident there called for help.

    In sentencing the defendant, Judge Griesbach noted the seriousness of the crime the defendant committed and remarked upon the need to punish the defendant for his “brutal” and “horrendous” acts. The court discussed the seriousness of the offense from the perspective of the effect it had on the victim and the children she shares with the defendant. The defendant’s documented history of violence against this victim and a total of 20 prior convictions also factored in the court reaching its sentence. Judge Griesbach also observed the need to incarcerate the defendant for a lengthy period to protect the victim and public.

    The case was investigated by the Menominee Tribal Police Department and FBI. Assistant United States Attorney Andrew J. Maier prosecuted the case in U.S. District Court in Green Bay.

    # #  #

    For further information contact: 
    Public Information Officer 
    Kenneth.Gales@usdoj.gov
    (414) 297-1700
    Follow us on Twitter  
     

    MIL Security OSI –

  • MIL-OSI Security: IRS, Postal Employees Indicted for Stealing U.S. Treasury Check

    Source: Office of United States Attorneys

    KANSAS CITY, Mo. – Employees with the IRS and the U.S. Postal Service are among three defendants who have been indicted by a federal grand jury for stealing and cashing a U.S. Treasury check.

    Sierra S. McCall, 31, of Independence, Mo., Jalen Koonce, 31, of Raytown, Mo., and Julian A. King, 31, address unknown, where charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Thursday, Feb. 6. The indictment was unsealed and made public following Koonce’s arrest and initial court appearance on Friday, Feb. 7.

    McCall is employed by the IRS as a customer contact representative. Koonce is employed by the U.S. Postal Service at the sorting facility where government checks are processed. King is the father of McCall’s child.

    The federal indictment charges McCall, Koonce, and King together in one count of the theft of government property. The indictment alleges they aided and abetted each other to steal and cash a $72,236 U.S. Treasury check on Aug. 9, 2023.

    The indictment also charges Koonce and King each with one count of money laundering related to financial transactions on Aug. 9, 2023, that involved the proceeds of the theft of government property.

    The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

    This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by Treasury Inspector General for Tax Administration (TIGTA) and the U.S. Postal Service – Office of Inspector General.

    MIL Security OSI –

  • MIL-OSI Security: St. Charles Man Sentenced to Prison, Ordered to Pay $170,500 to Child Pornography Victims

    Source: Office of United States Attorneys

    ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Monday sentenced a man from St. Charles, Missouri to 72 months in prison and ordered him to pay $170,500 in restitution to victims who appeared in the child sexual abuse material he collected.  

    Judge Fleissig also fined Brian Larkin $10,000 and ordered him to pay a $20,000 assessment that will go to child pornography victims. After his release from prison, Larkin will be on supervised release for life.

    Larkin, now 54, pleaded guilty in October to one felony count of receiving child pornography. He admitted possessing over 972 image files and 962 video files containing child sexual abuse material on a thumb drive that he kept in a safe.

    The investigation began in September of 2023, when the FBI’s St. Louis office learned of Larkin’s chat room communications about child sexual exploitation. Larkin had also been the subject of two Cyber Tipline Reports to the National Center for Exploited & Missing Children reporting that he’d used Kik Messenger to upload a total of five files containing child pornography.

    During a Nov. 29, 2023, court-approved search of Larkin’s home, agents found the thumb drive in a gun safe.

    The FBI investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.

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

    MIL Security OSI –

  • MIL-OSI Security: Former Keshena Resident Pleads Guilty to Fentanyl Distribution and Involuntary Manslaughter Related to Overdose Deaths in Tribal Jail

    Source: Office of United States Attorneys

    Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on February 7, 2025, Senior United States District Judge William C. Griesbach accepted the guilty pleas of Warren J. Grignon to one count of distribution of fentanyl in violation of 21 U.S.C. § 841 and one count of involuntary manslaughter in violation of 18 U.S.C. §§ 1111 and 1153(a).

    According to the indictment and plea agreement, Grignon was an inmate at the Menominee Tribal Detention Center in Keshena on the Menominee Indian Reservation. On December 23, 2024, Grignon distributed fentanyl he smuggled into the jail to three other inmates. All three inmates overdosed. Two inmates were revived through the efforts of additional inmates, corrections staff, and responding officers from the Menominee Tribal Police Department. One inmate could not be revived and was pronounced dead. A later autopsy revealed the cause of death to be a fentanyl overdose.

    The sentencing hearing is scheduled for May 16, 2025, at 10:30 a.m., before Judge Griesbach. Grignon faces a total sentence of up to 28 years in prison as well as fines and assessments for each count. Grignon also faces a minimum term of three years, and up to a lifetime of supervised release after completing any period of imprisonment.

    The Menominee Tribal Police Department and FBI investigated the case, with valuable assistance from the Department of Pathology and Laboratory Medicine at the University of Wisconsin School of Medicine and Public Health. Assistant United States Attorney Andrew J. Maier is prosecuting the case in the United States District Court in Green Bay.

    # #  #

    For further information contact: 
    Public Information Officer 
    Kenneth.Gales@usdoj.gov
    (414) 297-1700
    Follow us on Twitter  
     

    MIL Security OSI –

  • MIL-OSI Security: Georgia Man Sentenced to Ten Years in Prison for Role in Methamphetamine Trafficking Organization

    Source: Office of United States Attorneys

    HUNTINGTON, W.Va. – Nehmiah Allen-Griggs, also known as “Newski,” 23, of Dallas, Georgia, was sentenced today to ten years in prison, to be followed by five years of supervised release, for distribution of 50 grams or more of methamphetamine. Allen-Griggs admitted to his role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.

    According to court documents and statements made in court, on March 1, 2023, Allen-Griggs distributed approximately 1 pound of methamphetamine to a confidential informant in a Huntington parking lot in exchange for $2,000.

    On November 15, 2023, law enforcement officers executed a search warrant at a Highlawn Avenue residence in Huntington and seized quantities of methamphetamine and fentanyl, a Landor Arms Canyon Arms 12-gauge shotgun, a Walther P22 .22-caliber pistol equipped with a silencer, a Kel-Teck .22-caliber pistol, and various rounds of ammunition. Allen-Griggs admitted that he and others used the residence to store and distribute methamphetamine and fentanyl.

    Allen-Griggs is among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.

    Allen-Griggs is also among 22 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.

    United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.

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    MIL Security OSI –

  • MIL-OSI Asia-Pac: LOK SABHA SPEAKER URGES LEGISLATORS TO SPEND MORE TIME IN HOUSE DURING SESSIONS AND LISTEN TO ALL THE VIEW POINTS, BROADENING THEIR HORIZON & UNDERSTANDING ABOUT PEOPLE’S ISSUES

    Source: Government of India (2)

    LOK SABHA SPEAKER URGES LEGISLATORS TO SPEND MORE TIME IN HOUSE DURING SESSIONS AND LISTEN TO ALL THE VIEW POINTS, BROADENING THEIR HORIZON & UNDERSTANDING ABOUT PEOPLE’S ISSUES

    LOK SABHA SPEAKER EXPRESSES CONCERN OVER DECLINING PARTICIPATION OF MEMBERS IN LEGISLATIVE PROCEEDINGS AND POLITICAL LOGJAM

    PLANNED DISRUPTIONS IN LEGISLATURES ARE AGAINST DEMOCRATIC SPIRIT OF CONSTITUTION: LOK SABHA SPEAKER

    LEGISLATORS SHOULD COME TO HOUSE FOR DEBATES WELL-PREPARED AND WITH FACTS AND EFFECTIVELY USE LEGISLATIVE TOOLS LIKE QUESTION HOUR TO RAISE PEOPLE’S ISSUES: LOK SABHA SPEAKER

    LOK SABHA SPEAKER APPRECIATES PRODUCTIVITY OF MAHARASHTRA LEGISLATIVE ASSEMBLY

    LOK SABHA SPEAKER HIGHLIGHTS IMPORTANCE OF LEGISLATIVE DRAFTING AND EFFICIENCY AND EFFECTIVENESS OF PARLIAMENTARY COMMITTEES

    LOK SABHA SPEAKER ADDRESSES NEWLY ELECTED MEMBERS OF MAHARASHTRA LEGISLATIVE ASSEMBLY AND LEGISLATIVE COUNCIL DURING ORIENTATION PROGRAMME

    Posted On: 10 FEB 2025 6:46PM by PIB Delhi

    Lok Sabha Speaker Shri Om Birla today urged the legislators to actively engage with the House proceedings during sessions and listen to all the emanating view points, which would help them develop a broader perspective on understanding and addressing public issues.

    Addressing the inaugural session of an Orientation Programme for newly elected Members of the Maharashtra Legislative Assembly and Maharashtra Legislative Council at the Parliament House Complex, Lok Sabha Speaker Shri Om Birla expressed concern over the declining participation of Members in legislative proceedings and resulting political logjam. He also expressed concern over the decline in the number of sittings of legislative bodies and low productivity in legislatures.

    Stressing that planned disruptions in legislatures are against the democratic spirit of the Constitution, Shri Birla urged the legislators to raise public issues using effective legislative tools like Question Hour, without causing disruptions to the proceedings of the House. He also advised legislators to come prepared with facts for debates in the House. Shri Birla said that the more prepared legislators are, the more effective their participation will be, and the more productive the proceedings of the House will be. He said that the best legislator is the one who participates fully in House proceedings and engages in well-researched, logical discussions after understanding parliamentary procedures.

    On the completion of 75 years of the Constitution and the Republic, Shri Birla noted that it was a matter of pride that India is the world’s largest democracy, and that the Indian Constitution provides equal rights and freedom of expression to all.

    Appreciating the productivity of the Maharashtra Legislative Assembly, Shri Birla observed that while it is a matter of concern that the number of sittings of legislative bodies is decreasing in general, the productivity of the Maharashtra Legislative Assembly is commendable compared to other state assemblies. Referring to the glorious history of the Maharashtra Legislative Assembly, Shri Birla mentioned that from its establishment in 1937, it has laid the foundation for socio-economic changes. He told the elected representatives that being part of such a democratic system is a matter of pride. Shri Birla further remarked that Maharashtra has made significant contributions to the freedom movement, social reform, and spirituality, making the state an inspiration for the nation.

    Emphasizing the importance of efficient legislative drafting and the effectiveness of parliamentary committees, Shri Birla opined that it is a crucial responsibility for any legislator to ensure proper legislative drafting during the law-making process, as even a small error in legislative drafting can have long-term effects for our people. He said that there should be extensive discussions in the House during legislation, so that the issues of public welfare become part of the law in a positive way.

    Referring to parliamentary committees as “mini-parliaments,” Shri Birla urged all elected representatives to participate actively in Committee proceedings. He emphasized that legislators must ensure, that government spending is directed toward socio-economic change, especially in the Public Accounts and Estimates Committees, so that elected representatives can deliver positive outcomes towards public welfare.

    Referring to the importance of the Orientation Programme organized by the Parliamentary Research and Training Institute for Democracies (PRIDE), Shri Birla noted that the legislators attending the programme would gain in-depth knowledge of parliamentary procedures, traditions, and the functioning of legislative bodies in various states, which will help them discharge their parliamentary duties effectively. He added that continuous education and training are essential for understanding and effectively carrying out parliamentary work.

    Shri Birla exhorted the elected representatives, not to limit their work to constituency issues alone, but to also address state-level problems and challenges, bringing about socio-economic transformation with a positive outlook.

    On the occasion, Maharashtra Legislative Assembly Speaker Adv. Rahul Narwekar addressed the gathering and expressed gratitude to Lok Sabha Speaker Shri Om Birla. Shri Narwekar said that all legislators must follow the provisions of the Constitution and present their actions as a role model to society, so that people’s trust in parliamentary democracy is strengthened. He also highlighted the negative impact of planned disruptions in parliamentary work and stressed on the need to adopt better practices. Maharashtra Legislative Council Chairman Shri Ram Shinde also addressed the attending legislators on this occasion.

    Lok Sabha Secretary General Shri Utpal Kumar Singh delivered the welcome address. On this occasion, Shri Birla led the legislators in taking the pledge to uphold the preamble to the Constitution of India.

    ***

    AM

    (Release ID: 2101452) Visitor Counter : 107

    Read this release in: Hindi

    MIL OSI Asia Pacific News –

  • MIL-OSI Security: Jury convicts 2 defendants who were charged with 23 other Ohioans in narcotics distribution ring

    Source: United States Department of Justice (Human Trafficking)

    One defendant also convicted of sex-trafficking victims through use of drug withdrawals, violence

    COLUMBUS, Ohio – A federal jury has convicted two local men for their roles in a narcotics distribution ring involving bulk amounts of fentanyl, crack cocaine, cocaine, methamphetamine & other narcotics. As part of this case, the government has seized more than $1.7 million, 50 firearms, and nine vehicles, including a motorcycle. One of the defendants convicted at trial also sex-trafficked at least three adult victims.

    The jury found David Price, 56, of Columbus, guilty on all counts, and Tavaryyuan Johnson, 25, of Columbus, guilty on drug trafficking counts.

    The verdict was announced on Feb. 5 following a trial that began on January 13, 2025 before U.S. District Judge Edmund A. Sargus, Jr.

    A multi-agency law enforcement task force initially announced the case in July 2022 after a federal grand jury initially indicted 11 defendants for distributing bulk amounts of fentanyl, cocaine, and crack cocaine in central Ohio within 1,000 feet of a Columbus elementary school.

    A superseding indictment returned in October 2022 charged additional co-conspirators with distributing those same drugs in addition to methamphetamine, heroin, marijuana, Xanax and Oxycodone.

    Price, who is also known as “DP,” was charged in a third superseding indictment in December 2024 with 11 drug, firearm and sex trafficking crimes. He faces a minimum of 25 years and up to life in prison.

    Johnson is also known as “Gucci” and “TJ,” and was also charged in a third superseding indictment in December 2024. He was convicted of four drug offenses, including using a family residence in Columbus as his stash house for bulk amounts of narcotics. Johnson faces a minimum of 10 years and up to life in prison.

    According to court documents and trial testimony, the two men were part of a conspiracy to distribute and possess to distribute 400 grams or more of fentanyl, five kilograms or more of cocaine, 280 grams or more of “crack” cocaine and 100 grams or more of heroin, as well as marijuana, oxycodone and alprazolam. The drug trafficking organization operated from January 2008 until it was dismantled by law enforcement in 2022.

    Drug offenses took place at residences on Burgess and Harris avenues, which are within 1,000 feet of Burroughs Elementary School.

    In July 2021, Price distributed fentanyl, methamphetamine and cocaine that resulted in the overdose death of an adult female.  The testimony at trial indicated he purposefully killed her to get rid of her as she was talking to the police about his drug business.

    The government also proved beyond a reasonable doubt at trial that Price conspired to commit sex trafficking. From 2016 until 2022, Price and other members of the conspiracy would force and/or coerce adult female drug addicts into performing commercial sex acts by providing, withholding, or threatening to withhold controlled substances and lodging. Law enforcement’s investigation showed that various women engaged in a “rinse and repeat” cycle where they would be allowed to stay at a drug residence associated with Price, receive a front of drugs so they were not in active drug withdrawal, go to Sullivant Avenue, have sex for money, pay the debt from the front drugs, and then be allowed to remain at the house.

    Price was also found guilty of three counts of sex trafficking related to his violence and coercion towards three adult females.  The testimony at trial indicated that he would lock the females inside his residence for days or weeks at a time and refuse to let them leave, forcing them to engage in sex acts.  One victim was locked in a dog cage, shot and stabbed by Price. Another was restrained.  A third was beaten and choked and left with a black eye. Price would refuse to provide them drugs unless or until they engaged in the sex acts, forcing them into withdrawal if they did not comply.

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

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

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

    # # #

    MIL Security OSI –

  • MIL-OSI Security: South Lake Tahoe Man Sentenced to Over Two Years in Prison for Impersonating Federal Officers

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

    SACRAMENTO, Calif. — Anton Andreyevich Iagounov, 38, of South Lake Tahoe, was sentenced today by U.S. District Judge Daniel J. Calabretta to two years and three months in prison for four counts of impersonating a federal officer, Acting U.S. Attorney Michele Beckwith announced.

    According to court documents, and evidence presented at a three-day trial in July 2024, Iagounov pretended to be a federal law enforcement agent by creating and sending counterfeit investigative documents, which he signed in the name of a fictional federal agent, seeking highly protected information from the Department of Defense.

    “The defendant impersonated federal officers and tried multiple times to obtain protected information using fake court documents,” said Acting U.S. Attorney Beckwith. “Many federal agencies including NASA have devoted law enforcement officers, and we will not tolerate federal officers being illegally impersonated.”

    “Mr. Iagounov’s attempt to undermine public trust in order to obtain sensitive government information posed a significant risk, potentially endangering national security and the integrity of NASA and government operations,” said Michael Graham, Acting Assistant Inspector General for Investigations. “This sentencing demonstrates the commitment of NASA OIG, the USAO, and our law enforcement partners to safeguarding Federal assets and holding accountable those who undermine justice.”

    “The defendant impersonated a federal law enforcement officer and took advantage of the trust that exists between federal agencies,” said Acting Special Agent in Charge Jeremy N. Schwartz of the FBI Las Vegas Division. “All officers carry badges and credentials that are used to verify their identity. If you believe someone is impersonating an officer, you may ask their agency to confirm their official business. This sentencing demonstrates the excellent work achievable through partnerships.”

    On July 5, 2022, Iagounov sent a search warrant he had created to the U.S. Capitol Police, falsely claiming it was signed by a Special Agent of NASA Office of Inspector General (NASA‑OIG) and appearing to be authorized by a U.S. District Court judge for the District of Columbia. The Capitol Police investigated the document, determined it was fake, and referred it to NASA-OIG for further investigation.

    On July 11, 2022, Iagounov again pretended to be the same fictional NASA-OIG agent and sent the warrant to the U.S. District Court for the Central District of California. This time, he sent it without a judge’s signature, indicating it was for an “emergency filing” and required a judge’s signature. He sent it from an email address designed to look like it was from a United States government agency, but which Iagounov owned and had named to look like a government agency’s internet domain.

    On July 18, 2022, Iagounov again sent the fake search warrant, purporting to be signed by the same fictitious NASA-OIG agent. He sent it to the U.S. Bankruptcy Court for the Middle District of Georgia, again indicating that it was for an emergency filing and needed a judge’s signature immediately.

    Finally, on July 24, 2022, Iagounov faxed a letter, under the name of a real NASA-OIG supervising agent, to the U.S. District Court for the Northern District of Florida. In that letter, he claimed to be following up on the warrant, stating that an “exigent circumstance” required a judge’s signature immediately. The faxed letter included an anonymous email address for the agent that actually belonged to Iagounov. Several days earlier, on July 15, Iagounov had sent his warrant to the U.S. Bankruptcy Court for the Northern District of Florida but had received no response.

    In each case, given the apparently sensitive nature of the materials Iagounov’s warrant sought, the receiving personnel for the Courts referred the matter to NASA-OIG for review and investigation.

    This case was the product of an investigation by the Federal Bureau of Investigation and NASA Office of Inspector General, with assistance by the South Lake Tahoe Police Department and the Carson City Sheriff’s Office. Assistant U.S. Attorneys James Conolly and Audrey Hemesath prosecuted the case. 

    MIL Security OSI –

  • MIL-OSI USA: ‘Dating or Defrauding?’ a Joint Effort to Alert Online Daters, Social Media Users of Relationship Investment Scams

    Source: US Commodity Futures Trading Commission

    WASHINGTON, D.C. — In coordination with multiple federal, state, and nonprofit organizations, the Commodity Futures Trading Commission’s Office of Customer Education and Outreach has launched a national awareness effort to alert the public to relationship investment scams targeting Americans through wrong-numbered texts, dating apps, and social media.
    Over the coming weeks, the interagency Dating or Defrauding? social media awareness campaign will warn Americans to be skeptical of any request from online friends for cryptocurrency, gift cards, wire transfers, or other forms of payment. Other red flags include:

    A prolonged inability to meet in-person.
    Moving conversations off social or dating platforms to encrypted messaging apps.
    Repeated suggestions for investments or requests for money.

    The joint initiative will provide information about how to recognize relationship investment scams, what to do if you are affected, and why to share the information to warn others.
    “Today, criminals are better able to hide their identities, create more fake profiles, phishing emails, and more convincing scam websites than ever before,” said OCEO Director Melanie Devoe. “Valentine’s Day and the following weeks provide an excellent opportunity to remind people that criminals are using social media, dating, and messaging apps to scam Americans. We ask you to be alert, and to help stop scams by warning your friends and family.” 
    During the campaign, participating organizations will use the #DatingOrDefrauding hashtag and direct users to helpful resources. In addition to the CFTC, participating agencies include: 

    Federal agencies: FBI, Federal Deposit Insurance Corporation Office of Inspector General, Federal Trade Commission, Financial Crimes Enforcement Network, Social Security Administration Office of the Inspector General, and U.S. Postal Inspection Service.
    State agencies: Arizona Corporation Commission, U.S. Virgin Islands Office of the Lieutenant Governor, Oregon Division of Financial Regulation, Washington State Department of Financial Institutions, and Wisconsin Department of Financial Institutions.
    Non-governmental organizations: FINRA and NFA. 

    About Relationship Investment Scams
    Relationship investment scams are a recent type of romance fraud, causing reported losses to the FBI of nearly $4 billion in 2023. Called pig butchering by the perpetrators, criminals use dating apps, social media platforms, messaging apps, and even random “wrong number” text messages to target possible victims. The scammers are known to use fake profiles, images, videos and voices to make themselves appear attractive and professional, and once introduced, they send frequent messages to build relationships. These new online “friends” claim to have made a lot of money trading cryptocurrency, precious metals, or foreign currency, thanks to special knowledge or insider help. The scammers talk about how easy it is and offer to help victims earn extra money. Victims are then directed to fraudulent trading platforms operated by the same organized criminal gangs.
    These scams do not discriminate and have victimized people of all ages. People who live alone or spend a lot of time on social media or in discussion groups tend to be more vulnerable to fraud. Scams work because they appeal to unmet needs or emotions, like financial stress, excitement, or fear. The good news is that awareness can reduce victimization. Sharing information could help protect those closest to you.
    In addition to participating in the Dating or Defrauding? effort, the CFTC’s Office of Customer Education and Outreach is releasing a customer advisory, Help Warn Others About Relationship Investment Scams, that explains the fraud in detail and steps the public can take to help others.
    The CFTC has previously alerted customers to romance frauds including the inaugural Dating or Defrauding? campaign in 2022. [See CFTC Press Release No. 8491-22]. The CFTC also issued customer advisories Avoid Forex, Precious Metals, and Digital Asset Romance Scams. [See CFTC Press Release No. 8492-22] and Six Warning Signs of Online Financial Romance Frauds.
    About the Office of Customer Education and Outreach
    OCEO is dedicated to helping customers protect themselves from fraud or violations of the Commodity Exchange Act through the research and development of effective financial education materials and initiatives. OCEO engages in outreach and education to retail investors. The office also frequently partners with federal and state regulators as well as consumer protection groups. The CFTC’s full repository of customer education materials can be found at: cftc.gov/LearnAndProtect.
    Customer Advisory: Help Warn Others About Relationship Investment Scams is available in full below.
    ###
    Customer Advisory: Help Warn Others About Relationship Investment Scams
    Scammers are using smart phones, social media or dating sites, and cryptocurrency to steal billions of dollars from Americans. Over the coming month, the CFTC is joining with other federal, state, and nonprofit organizations to raise awareness about these horrible crimes. You can help too: Warn your friends and family by sharing #DatingOrDefauding information and links. 
    Relationship investment scams, called pig butchering by the perpetrators, use dating apps, social media platforms, messaging apps, and even random “wrong number” text messages to target possible victims. The fraudsters use fake profiles, images, videos and voices to make them appear attractive and professional. Once introduced, they send frequent messages to build relationships. The new online “friends” claim to have made a lot of money trading cryptocurrency, precious metals, or foreign currency, thanks to special knowledge or insider help. The scammers talk about how easy it is and offer to help targets earn extra money. Targets are then directed to fraudulent trading platforms operated by the same organized criminal gangs.
    Victims are told to convert their dollars to cryptocurrency and then send the crypto to the scam website. They see their balances on the websites grow substantially and are encouraged to withdraw small amounts of money to spend on themselves. This is another ploy to build trust. Research reveals victims transfer an average of 10 payments, each larger than the last until they are financially drained. When victims try to make subsequent withdraws, they are refused or told they must pay additional fees or taxes.
    Anyone Could be a Potential Victim
    Relationship investment scams do not discriminate and have victimized people of all ages. People who live alone or spend a lot of time on social media or in discussion groups tend to be more vulnerable to fraud. Scams work because they appeal to unmet needs or emotions, like financial stress, excitement, or fear. 
    The good news is that awareness about specific scams can reduce victimization by up to 85 percent.[1] Sharing information during the Dating or Defrauding Campaign could help protect those closest to you.
    What You Can Do

    Talk about relationship investment scams and other scams you hear about. Visit the CFTC Romance Fraud Center for more information and resources. Talking regularly about fraud raises awareness, reduces the stigma of victimization, and can encourage reporting. 
    Look for and share, like, or repost messages with the #DatingOrDefrauding hashtag.
    Host a fraud prevention event in your community. You can engage local law enforcement, the CFTC, or other agencies involved in the Dating or Defrauding Campaign.
    Listen for warning signs, like a friend or relative talking about a new online relationship or investing in crypto for the first time.
    Report fraud. You can do so at CFTC.gov/complaint or the FBI’s Internet Crime Complaint Center, IC3.gov. If you are victimized by this fraud here are resources that can help.

    MIL OSI USA News –

  • MIL-OSI Security: Guilty Plea in Hacking of the SEC’s X Account That Caused Bitcoin Value Spike

    Source: Office of United States Attorneys

                WASHINGTON – Eric Council, 25, of Athens, Georgia, entered a guilty plea today to one count of conspiracy to commit aggravated identity theft in United States District Court for the District of Columbia. Council was arrested on October 17, 2024, in connection with his role in a conspiracy to hack into the X account of the U.S. Securities and Exchange Commission (SEC) and publish fraudulent posts in the name of the then-SEC Chairman. 

               The plea was announced by U.S. Attorney Edward R. Martin, Jr., Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, SEC Inspector General Deborah Jeffrey and FBI Special Agent in Charge Sean Ryan of the Washington Field Office, Criminal and Cyber Division.

               Council’s plea was entered before U.S. District Court Judge Amy Berman Jackson in the District of Columbia. He faces a maximum sentence of five years in prison, a $250,000 fine, and up to three years of supervised release. His sentencing is scheduled for May 16, 2025.

                According to court documents, from at least January 2024, Council conspired with others to carry out Subscriber Identity Model (SIM) attacks, commonly referred to as “SIM swaps,” in exchange for money. 

           A SIM card is a chip that stores information identifying and authenticating a cell phone subscriber and connects a physical cell phone to a mobile carrier’s cellular and data network. A SIM swap attack is a form of sophisticated fraud where criminal actors fraudulently induce a mobile carrier to reassign a mobile phone number from a victim’s SIM card to a SIM card and telephone controlled by a criminal actor attempting to access valuable information associated with the victim’s telephone. Members of SIM swapping groups conduct SIM swaps for the purpose of defeating multifactor authentication and/or two-step verification security features for internet connected accounts, such as social media and virtual currency accounts. 

               After convincing a mobile carrier to reassign a phone number to a new SIM card in the criminal actor’s control, members of the conspiracy generate password reset security authentication codes for online accounts and those codes are in turn sent to the telephone in the control of the criminal actor. Members of SIM swap groups share the security reset codes with one another to unlawfully access a victim’s internet connected accounts and complete the fraud. 

               On or about January 9, 2024, Council, and others, executed a SIM swap of the mobile phone account associated with the @SECgov X account, the official account of the SEC. The purpose of this SIM swap was to gain unauthorized access to this government account in order to make fraudulent posts. 

               Before January 9, a member of the conspiracy had identified the authorized user for the phone number linked to the official @SECgov X account. Council received instruction from a co-conspirator to perform the SIM swap on this phone line, along with information to make the needed fake ID, that is, an image of an ID card template with the authorized user’s name on it but Council’s face, and information purporting to be the user’s date of birth and social security number. 

               Council used his portable ID card printer to create a physical ID which he used to impersonate the victim at an AT&T store in Huntsville, Alabama. Council provided false information to the AT&T store employee to explain why he needed a replacement SIM card. Council obtained the SIM card linked to the victim’s phone line and walked to a nearby Apple store where he purchased a new iPhone to use in the crime.  He inserted the SIM card to activate the phone, received the @SECGov X password reset codes on this new phone linked to the victim’s SIM card and used his personal cell phone to take a photo of the @SECgov X account reset code to share with his co-conspirators. After passing along the password reset codes, Council drove to Birmingham, Alabama and immediately returned the iPhone for cash.  

               A member of the conspiracy used the reset code to gain access to the @SECGov X account and issue a fraudulent post in the name of the then-SEC Chairman, falsely announcing SEC approval of Bitcoin (BTC) Exchange Traded Funds (ETFs). The price of BTC increased by more than $1,000 following the post. Shortly after this unauthorized post, the SEC regained control over their X account and confirmed that the announcement was unauthorized and the result of a security breach, which caused the value of BTC decreased by more than $2,000.

                Council also admitted to attempting to perform additional SIM swaps in June 2024 in Alabama. In June 2024, the FBI executed a search warrant at an Athens, Alabama, apartment where he resided. Agents recovered a fake identification card and a portable ID card printer. They also recovered a laptop computer. 

               Pursuant to the search warrant, agents searched the laptop and discovered templates for additional fake identification cards stored on the laptop along with internet searches for “SECGOV hack,” “telegram sim swap,” “how can I know for sure if I am being investigated by the FBI,” “What are the signs that you are under investigation by law enforcement or the FBI even if you have not been contacted by them,” “what are some signs that the FBI is after you,” “Verizon store list,” “federal identity theft statute,” and “how long does it take to delete telegram account.” 

                Council admitted to receiving approximately $50,000 from members of the conspiracy to perform SIM swap during the previous six months.   

               This case is being investigated by the FBI Washington Field Office Criminal and Cyber Division, the SEC-Office of Inspector General, the U.S. Attorney’s Office for the District of Columbia, and the Computer Crime and Intellectual Property Section (CCIPS) and Fraud Section’s Market Integrity and Major Frauds Unit of the Justice Department’s Criminal Division. Significant assistance was provided by the FBI’s Birmingham Field Office.

              The prosecution is being handled by Assistant United States Attorney Kevin Rosenberg, CCIPS Trial Attorney Ashley Pungello, and Fraud Section Trial Attorney Lauren Archer. Valuable assistance was provided by Assistant United States Attorney John Hundscheid from the Northern District of Alabama.

             For more information on SIM swapping, go to: https://www.ic3.gov/PSA/2024/PSA240411

    24cr0457

    MIL Security OSI –

  • MIL-OSI USA: Alabama Man Pleads Guilty in Connection with Securities and Exchange Commission X Account Hack

    Source: US State Government of Utah

    An Alabama man pleaded guilty today in connection with the January 2024 unauthorized takeover of the U.S. Securities and Exchange Commission (SEC)’s social media account on X, formerly known as Twitter, in which hackers posted a fraudulent message in the name of the then-SEC Chairman, temporarily causing the value of Bitcoin (BTC) to increase by more than $1,000.

    According to court documents, Eric Council Jr., 25, of Athens, conspired with others who took unauthorized control of the SEC’s X account and falsely announced that the SEC approved BTC Exchange Traded Funds, a decision highly anticipated by the market. Immediately following the false announcement, the price of BTC increased by more than $1,000 per bitcoin. Shortly after this unauthorized post, the SEC regained control over its X account and confirmed that the announcement was false and the result of a security breach. Following the correction, the value of BTC decreased by more than $2,000 per bitcoin.

    The conspirators gained control of the SEC’s X account through an unauthorized Subscriber Identity Module (SIM) swap carried out by Council. A SIM swap refers to the process of fraudulently inducing a cell phone carrier to reassign a cell phone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by a criminal actor. As part of the scheme, Council used an identification card printer to create a fraudulent identification card with a victim’s personally identifiable information obtained from his co-conspirators. Council used the fraudulent identification card to impersonate the victim and gain access to the victim’s cellular phone number for the purpose of accessing the SEC’s account. Council’s co-conspirators then accessed the account and posted in the name of the SEC Chairman. Council received payment in bitcoin from his co-conspirators for his role.   

    Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. He is scheduled to be sentenced on May 16 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; U.S. Attorney Edward R. Martin Jr. for the District of Columbia; Special Agent in Charge Sean Ryan of the FBI Washington Field Office, Criminal and Cyber Division; and SEC Inspector General Deborah Jeffrey made the announcement.

    The FBI Washington Field Office and SEC Office of Inspector General are investigating the case.

    Trial Attorney Ashley Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Lauren Archer of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Kevin Rosenberg for the District of Columbia are prosecuting the case. Substantial assistance was provided by Cyber Fellow Paul M. Zebb III.

    For more information on SIM swapping, visit www.ic3.gov/PSA/2024/PSA240411.

    MIL OSI USA News –

  • MIL-OSI Security: Alabama Man Pleads Guilty in Connection with Securities and Exchange Commission X Account Hack

    Source: United States Attorneys General 6

    An Alabama man pleaded guilty today in connection with the January 2024 unauthorized takeover of the U.S. Securities and Exchange Commission (SEC)’s social media account on X, formerly known as Twitter, in which hackers posted a fraudulent message in the name of the then-SEC Chairman, temporarily causing the value of Bitcoin (BTC) to increase by more than $1,000.

    According to court documents, Eric Council Jr., 25, of Athens, conspired with others who took unauthorized control of the SEC’s X account and falsely announced that the SEC approved BTC Exchange Traded Funds, a decision highly anticipated by the market. Immediately following the false announcement, the price of BTC increased by more than $1,000 per bitcoin. Shortly after this unauthorized post, the SEC regained control over its X account and confirmed that the announcement was false and the result of a security breach. Following the correction, the value of BTC decreased by more than $2,000 per bitcoin.

    The conspirators gained control of the SEC’s X account through an unauthorized Subscriber Identity Module (SIM) swap carried out by Council. A SIM swap refers to the process of fraudulently inducing a cell phone carrier to reassign a cell phone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by a criminal actor. As part of the scheme, Council used an identification card printer to create a fraudulent identification card with a victim’s personally identifiable information obtained from his co-conspirators. Council used the fraudulent identification card to impersonate the victim and gain access to the victim’s cellular phone number for the purpose of accessing the SEC’s account. Council’s co-conspirators then accessed the account and posted in the name of the SEC Chairman. Council received payment in bitcoin from his co-conspirators for his role.   

    Council pleaded guilty to conspiracy to commit aggravated identity theft and access device fraud. He is scheduled to be sentenced on May 16 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; U.S. Attorney Edward R. Martin Jr. for the District of Columbia; Special Agent in Charge Sean Ryan of the FBI Washington Field Office, Criminal and Cyber Division; and SEC Inspector General Deborah Jeffrey made the announcement.

    The FBI Washington Field Office and SEC Office of Inspector General are investigating the case.

    Trial Attorney Ashley Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Lauren Archer of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Kevin Rosenberg for the District of Columbia are prosecuting the case. Substantial assistance was provided by Cyber Fellow Paul M. Zebb III.

    For more information on SIM swapping, visit www.ic3.gov/PSA/2024/PSA240411.

    MIL Security OSI –

  • MIL-OSI USA: Federal Court Orders Florida Man to Pay Over $7.6 Million for Digital Asset Fraud

    Source: US Commodity Futures Trading Commission

    WASHINGTON, D.C. — The Commodity Futures Trading Commission today announced the U.S. District Court for the District of Massachusetts entered a consent order against Randall Crater of Heathrow, Florida. 
    The order requires Crater to pay over $7.6 million in restitution to defrauded victims in connection with his digital asset fraud scheme, with dollar-for-dollar credit for restitution payments to victims in satisfaction of the restitution ordered in a parallel criminal action. The order also imposes a permanent injunction against Crater and bans him from trading in any CFTC-regulated markets, entering into any transactions involving commodity interests or digital asset commodities, and registering with the CFTC. 
    The consent order finds from at least January 2014 through January 2018, Crater, together with other defendants named in CFTC’s amended complaint, operated a digital asset scheme in which they fraudulently offered the sale of a fully functioning virtual currency, My Big Coin, a commodity in interstate commerce. 
    Crater obtained more than $7.6 million from at least 28 customers through fraudulent solicitations, including false and misleading claims and omissions about MBC’s value, use and trade status, and that MBC was backed by gold. He spent the misappropriated money to purchase, among other things, a home, antiques, fine art, jewelry, and other luxury goods.
    The consent order resolves the claims against Crater in the CFTC’s enforcement action against him and co-defendants Mark Gillespie, My Big Coin Pay, Inc., My Big Coin, Inc., John Roche, and Michael Kruger. [See CFTC Press Release 7678-18.] The enforcement action remains pending against the co-defendants.
    The CFTC cautions that orders requiring repayment of funds to victims may not result in the recovery of any money lost because the wrongdoers may not have sufficient funds or assets. The CFTC will continue to fight vigorously for the protection of customers and to ensure wrongdoers are held accountable.
    Parallel Criminal Action
    On Jan. 18, 2022, a grand jury returned an eight-count superseding indictment charging Crater with wire fraud, unlawful monetary transactions, and operating an unlicensed money transmitting business based on the same conduct alleged in CFTC’s amended complaint. [United States v. Randall Crater, No. 1:19-cr-10063-DJC (D. Mass. Jan. 18, 2022)).] Crater was found guilty of those charges on July 21, 2022, and was sentenced to over eight years in prison and ordered to pay $7.6 million in restitution to defrauded customers and to forfeit $7.6 million, which represented the proceeds he received from his violations.
    The CFTC appreciates the assistance of the U.S. Attorney’s Office for the District of Massachusetts, the U.S. Department of Justice Criminal Division’s Fraud Section, and the FBI.
    Division of Enforcement staff responsible for this case are Traci Rodriguez, Jonah E. McCarthy, Patricia Gomersall, Daniel Ullman II, Paul G. Hayeck, and former staff members Jason Mahoney, John Einstman, Kyong J. Koh, and Hillary Van Tassel.

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