Category: Intelligence Agencies

MIL-OSI Security: Former NYC Fraud Investigator Sentenced to Prison for Stealing Homeless Victims’ Identities to Apply for Unemployment Benefits

Source: Office of United States Attorneys

NYC Fraud Investigator Stole Victim Information from Department of Homeless Services Database and Conspired to Fraudulently Apply for Unemployment Insurance Benefits in Victims’ Names

Earlier today, in federal court in Brooklyn, defendant Olabanji Otufale, a former New York City Department of Homeless Services fraud investigator, was sentenced by United States District Judge Kiyo A. Matsumoto to 27 months in prison for conspiracy to commit wire fraud and aggravated identity theft. Otufale and co-conspirator Marc Lazarre pleaded guilty in July 2024.

John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jocelyn Strauber, Commissioner, New York City Department of Investigation (DOI) announced the sentence.

“The defendant abused his position of trust as a fraud investigator to access and steal vulnerable homeless victims’ personal identifying information for his personal benefit,” stated United States Attorney John J. Durham. “Otufale betrayed the public trust and conspired to use his access for illicit financial gain. Today’s sentence should serve as a lesson to this defendant and all public employees that exploiting positions of power for personal financial gain will be punished.”

“Olabanji Otufale exploited his position within the Department of Homeless Services to steal the identities of homeless individuals and furtively reaped their allocated social services benefits. These abhorrent actions violate the trust and expected privacy placed in local agencies responsible for storing sensitive information. The FBI will never tolerate public service employees who prey upon our city’s vulnerable populations for fiscal profits,” stated FBI Assistant Director in Charge Dennehy.

DOI Commissioner Jocelyn E. Strauber said, “The defendant, a City fraud investigator with the Department of Homeless Services, had a duty to protect DHS and the vulnerable New Yorkers it serves from fraud. Instead, he used his access and position to steal personal information of applicants for social services, in a scheme to illegally obtain unemployment benefits. The sentence imposed today makes clear that we and our law enforcement partners will hold accountable those who misuse their City positions for personal profit. I thank the United States Attorney’s Office for the Eastern District of New York and the FBI for their continued partnership in the effort to protect critical public funds.”

In the fall of 2020, Otufale conspired with others to steal the personal identifying information of more than ten homeless individuals and use that stolen information to fraudulently apply for unemployment insurance benefits in the names of those homeless individuals without their knowledge or consent.

At the time of the scheme, Otufale was a fraud investigator with the New York City Department of Homeless Services (the Department). In that role, Otufale was responsible for ensuring individuals who applied for homeless services—such as housing in homeless shelters—were qualified to receive services from the Department.

Otufale, however, used his access to a database maintained by the Department to commit fraud himself, stealing the personal identifying information—names, social security numbers, dates of birth—of vulnerable victims who had given that personal information to the Department when they applied for services. Otufale then texted this victim information to a co-conspirator, Marc Lazarre, who applied online for unemployment benefits in the names of the homeless victims. Otufale and Lazarre conspired to split the fraudulent benefits they received. Lazarre is scheduled to be sentenced on March 4, 2025.

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Sara K. Winik, Laura Zuckerwise and Katherine P. Onyshko are in charge of the prosecution, with assistance from Paralegal Specialist Nadya Osman.

The Defendants:

Olabanji Otufale
Age: 41
Brooklyn, NY

Marc Lazarre
Age: 39
Secaucus, NJ

E.D.N.Y. Docket No. 24-CR-170 (KAM)

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Former Soldier Sentenced to Over Seven Years in Prison for Sexual Abuse of a Child on Joint Base Lewis-McChord

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

Defendant previously investigated in the Army and prosecuted in State Court for sexual assault crimes

Tacoma – A former U.S. Army soldier was sentenced today in U.S. District Court in Tacoma to 87 months in prison for abusive sexual contact with a child, announced U.S. Attorney Tessa M. Gorman. Cameron James Taylor, 49, of Seattle, pleaded guilty in May 2024 and has been in custody since his guilty plea. At today’s sentencing hearing Chief U.S. District Judge David G. Estudillo noted the conduct in this case may cause the victim lifetime torment. The victim “is a strong individual” and “shows courage to move on” Chief Judge Estudillo said.

“This horrific conduct cannot go unpunished. Our work to protect children on our military bases is a priority in the Western District of Washington,” said U.S. Attorney Gorman. “Mr. Taylor sexually assaulted a child who was just 5 years old. He then pressured the child to hide the conduct when questioned by other adults. I commend the strength of the victim in this case.”

According to records filed in the case, Taylor left the Army in 2016 with an “Other than Honorable” discharge after he was investigated for sexual assault of an unconscious female in Germany, and for assaulting soldiers who went to arrest him. Taylor resigned in lieu of Court Martial.

Once back in the U.S., Taylor was convicted of the 2019 sexual assault of a 5-year-old neighbor child. Taylor forced the child to massage him and reach into his pants. In 2022, Taylor was sentenced in King County Superior Court to 18 months in prison.

During the investigation related to the neighbor child, other children who had been in Taylor’s care were interviewed. Taylor had coached a child, who was now a teen about hiding his sexual assaults. Ultimately, the child disclosed to a relative that in 2012, while stationed on JBLM, Taylor locked the then 5- or 6-year-old in a closet and sexually assaulted the child.

On the eve of trial, Taylor pleaded guilty.

In asking for the 8-year sentence prosecutors wrote to the court, “Taylor’s crimes reveal a man who lacks empathy and who prioritized his own pleasure over others’ pain. Taylor is also no stranger to the justice system; this is his third criminal sex offense. The government hopes that a 96-month sentence, coupled with lifetime supervised release, will prevent Taylor from reoffending again.”

Taylor is required to register as a sex offender following his prison term. Chief Judge Estudillo ordered that he be on supervised release for ten years following prison.

The case was investigated by U.S. Army Criminal Investigations (CID), the King County Sheriff’s Office, and the FBI.

The case was prosecuted by Assistant United States Attorneys Hillary K. Stuart and Erika J. Evans.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Morgantown Sex Offender Sentenced to 10 Years After Traveling to Mexico to Purchase Child

Source: Office of United States Attorneys

CLARKSBURG, WEST VIRGINIA – Scott David Bixler, 43, of Morgantown, West Virginia, was sentenced to the statutory maximum sentence of 120 months imprisonment for failing to update his sex offender registration. Bixler will serve a lifetime of supervision following his prison sentence.

Bixler is a convicted sex offender and is required to register under the Sex Offender Registration Act (SORNA) for life. As part of his registration obligations, he is required to report any international travel. In July of 2023, Bixler fled to Mexico shortly before he was scheduled to appear in state court for sentencing related to criminal convictions for failure to register as a sex offender under West Virginia law.

When Bixler and his spouse were arrested in Mexico, they possessed two pellet guns, methamphetamine, a cell phone jammer, and a large amount of cash. The investigation also revealed that the Bixlers were attempting to purchase a young girl while in Mexico. Fortunately, Mexican authorities thwarted the plan and arrested the couple.

“The sentence handed down by the Court ensures that the Defendant will be confined in prison for the maximum time allowed by law,” said Acting United States Attorney Randolph J. Bernard. “I shudder to think what might have happened but for the dedication of AUSA Perri, the federal and state law enforcement agencies, as well as the Mexican authorities. Our community and children are safer because of their efforts and the sentence imposed.”

Assistant U.S. Attorney David Perri prosecuted the case on behalf of the government. The FBI, the U.S. Marshals Services, and the West Virginia State Police investigated this case.

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

Chief U.S. District Judge Thomas S. Kleeh presided.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: United States Attorney’s Office Underscores Enforcement of Executive Order on Immigration

Source: Office of United States Attorneys

SAN JUAN, Puerto Rico – The United States Attorney’s Office for the District of Puerto Rico, through United States Attorney W. Stephen Muldrow, issues the following statement to underscore support for the January 20, 2025, Executive Order, entitled “Protecting the American People Against Invasion.”

Department of Justice agencies in Puerto Rico, including the U.S. Attorney’s Office, the Federal Bureau of Investigation, the U.S. Marshals Service, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Bureau of Prisons, underscore their support and partnership with the Department of Homeland Security (DHS) and all its components in Puerto Rico to enforce our nation’s immigration laws.

The Justice Department and DHS will also continue to collaborate and work closely with our counterparts within the Government of Puerto Rico, to include the Puerto Rico Department of Justice, the Puerto Rico Department of Public Safety, the Puerto Rico Police Bureau, and other governmental agencies, as well as municipal police departments to protect our communities from harm.

The U.S. Attorney’s Office’s implementation of the Executive Order will focus on the apprehension and prosecution of criminal aliens, as well as supporting the prosecution and/or expedited removal from the United States of aliens without legal status. The apprehension and prosecution or removal of aliens includes special interest aliens deemed by the DHS to be from a country that poses a national security or counterintelligence threat.

“Those aliens who are involved in criminal activity, who are fugitives from justice, who have prior criminal convictions and/or come from nations that pose a threat to our national security, remain a priority for the Department of Justice,” said United States Attorney Muldrow. “We are also fully committed to supporting the efforts of the Department of Homeland Security, and all its components, to make Puerto Rico and the United States safer.”

“The FBI remains committed to working alongside our law enforcement partners to uphold the rule of law and ensure public safety,” said Joseph González, Special Agent in Charge of the FBI’s San Juan Field Office. “Through this initiative, continued collaboration and intelligence-driven operations, we are supporting efforts to protect our communities, while adhering to our mission of upholding the Constitution.”

“Homeland Security Investigations (HSI) is dedicated to identifying and prosecuting individuals who are illegally present in the United States, ensuring they are swiftly removed to their home countries,” said Rebecca González-Ramos, Special Agent in Charge of HSI San Juan. “The executive order aims to protect the United States from individuals who pose a threat to public safety by committing crimes.”

“The Drug Enforcement Administration remains resolute in its mission to protect the communities of Puerto Rico and the U.S. Virgin Islands from the devastating impact of drug trafficking and transnational criminal organizations. These criminal networks not only threaten public safety through the distribution of dangerous narcotics but also exploit immigration vulnerabilities to further their illicit enterprises. Through intelligence-driven investigations, collaborative enforcement operations, and strategic partnerships with our federal, state, and local counterparts, the DEA will aggressively target those who pose a threat to our national security and the well-being of our citizens. Our enforcement efforts will focus on identifying, disrupting, and prosecuting individuals and organizations engaged in drug trafficking, money laundering, and violent crime. Additionally, we remain committed to supporting the efforts of the Department of Homeland Security and the Department of Justice in the apprehension and prosecution of criminal aliens involved in drug-related offenses. The DEA Caribbean Division will continue to conduct high-impact operations aimed at preventing narcotics and criminal elements from infiltrating our shores. These enforcement efforts are crucial in ensuring the safety and security of the people of Puerto Rico and the continental United States. The message is clear: those who attempt to use our territory as a gateway for illicit activities will be met with the full force of federal law enforcement,” stated Michael A. Miranda, Special Agent in Charge of DEA Caribbean Division.

“We stand in unison with our Federal and Puerto Rico partners in this all-hands-on deck to stem the tide of illegal immigration,” said Christopher A. Robinson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Miami Field Division.

The United States Marshals Service, whose mission includes apprehending federal and state fugitives, will lead an initiative – Operation Homeland – to focus resources and coordinate enforcement operations with DOJ and DHS components on the apprehension of alien fugitives charged with federal and local crimes.

“Historically, the United States Marshals have played a crucial role in serving our nation by apprehending and removing dangerous fugitives from our communities. In this instance, we have teamed up with our federal law enforcement partners to focus on apprehending non-U.S. citizens who have active criminal warrants. We are confident that these collaborative efforts will lead to safer communities. We encourage all citizens to continue cooperating with our investigations to help locate these fugitives and bring them to justice,” said Wilmer Ocasio-Ibarra, U.S. Marshal District of Puerto Rico.

As recently announced by Immigration and Customs Enforcement (ICE), on January 30, 2025, the below-listed individuals entered into Puerto Rican waters without inspection and were detained by the CBP. Earlier that day, Coast Guard had previously boarded the sailing vessel Mistress, but the vessel was allowed to continue its voyage to St. Martin. Instead of going to St. Martin, the S/V Mistress entered U.S. waters without inspection and anchored off La Parguera, where they were arrested and processed for expedited removal by DHS officials, including the United States Border Patrol and Immigration and Customs Enforcement (ICE). Specifically, the following eight individuals were encountered on a private boat off the southwest coast of Puerto Rico:

Name   Country of Citizenship

Erlanbek Narkoziev   Kyrgyzstan

Jafar Valamatov   Russia

Kanal Assylbekov Kazakhstan

Nikita Torshin Kazakhstan

Sanjarjon Sidikov   Uzbekistan

Shackhat Uurustamov Kyrgyzstan

Odiljon Azimov Kyrgyzstan

Shukrat Akhemodov   Russia

“Every day CBP Officers are responsible with determining the admissibility of aliens arriving at our ports of entry. Foreign travelers requesting entry undergo an inspection and determination of admissibility to the United States, and if they are not admissible, they are returned to their point of embarkation,” indicated Roberto Vaquero, Director of the San Juan Office of Field Operations. “Our officers will be vigilant in determining admissibility and will also inspect authorized presence from passengers in domestic flights as they try to reach the Continental US.”

“The Ramey Sector of the US Border Patrol remains steadfast in protecting our Caribbean borders and deter irregular migration attempts. U.S. immigration law makes it a crime to enter or attempt to enter without requesting admission at a port of entry designated for that purpose by immigration officials,” stated Reggie Johnson, Acting Chief Patrol Agent. “Migrants should know that they will face full legal consequences of unlawful entry.”

“Air and Marine Operations agents and assets will support the whole of government effort to enforce immigration laws and protect our borders from emerging threats,” said Christopher Hunter, Director of the Caribbean Air and Marine Branch. “AMO safeguards our Nation by anticipating and confronting security threats through our aviation and maritime law enforcement expertise, innovative capabilities, and partnerships at the border and beyond.”

###

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Stafford Man Indicted for Firearms, Meth Trafficking

Source: Office of United States Attorneys

KANSAS CITY, Mo. – A Stafford, Mo., man who purchased more than 50 firearms has been indicted by a federal grand jury for illegally trafficking firearms and methamphetamine.

David Allen Gaunt, 57, was charged in a 16-count indictment returned by a federal grand jury in Kansas City, Mo., on Tuesday, Feb. 4. The indictment replaces a criminal complaint that was filed against Gaunt on Jan. 16, 2025.

The federal indictment alleges that Gaunt participated in a conspiracy to traffic firearms from June 21, 2023, to Jan. 23, 2025. Those firearms, according to the indictment, included a Kalashnikov pistol, a Century Arms pistol, a Tokarev shotgun, a Canik pistol and an HS Produkt pistol. In addition to the conspiracy, Gaunt is charged with one count of trafficking those firearms to a recipient who was legally prohibited from possessing them.

The federal indictment also charges Gaunt with being an unlawful user of a controlled substance while in possession of 15 different firearms. Gaunt is charged with four counts of making a false statement to a licensed firearms dealer in order to purchase firearms, four counts of possessing methamphetamine with the intent to distribute, four counts of possessing firearms in furtherance of a drug-trafficking crime, and one count of distributing methamphetamine.

According to an affidavit filed in support of the original criminal complaint, Gaunt has personally purchased more than 50 firearms. On every purchase, the affidavit says, Gaunt marked “No” on the federal form that asked, “Are you an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance?” Eighteen of these firearms have been recovered by law enforcement, from Gaunt and others. Additionally, 11 of the firearms Gaunt purchased have been either sold to or pawned at pawn shops.

Springfield police officers seized three of those firearms during the execution of two search warrants in separate drug-trafficking investigations in June 2023, and the Greene County Sheriff’s Department seized one of those firearms during enforcement activities in July 2023. All of the firearms were seized from individuals who were legally prohibited from possessing firearms, the affidavit says, and were traced to Gaunt as the original purchaser.

On Aug. 16, 2023, Springfield police officers stopped Gaunt near S. Glenstone Avenue and E. St. Louis Street. When officers searched his vehicle, they found six firearms. On Nov. 6, 2024, Springfield officers conducted a traffic stop of a vehicle operated by Gaunt. Officers seized a Sig Sauer 9mm pistol from Gaunt’s waistband. A clear plastic bag of methamphetamine was found in the center console of the vehicle.

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 Stephanie L. Wan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Greene County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, and the Missouri State Highway Patrol.

MIL Security OSI –

February 6, 2025

MIL-OSI: Bpce: Groupe BPCE Results Q4-24 & 2024

Source: GlobeNewswire (MIL-OSI)

Paris, February 5, 2025

STRONG PERFORMANCES IN 2024

• Excellent performance in Q4-24 •
• Net income (Group share) of €3.5bn in 2024, strong growth of +26% •
• VISION 2030: dynamic implementation of the strategic project •

Q4-24: net banking income at €6bn, up +11% YoY; very good performance achieved by retail banking and the global businesses; net income of €913m, +140% YoY
2024: net banking income of €23.3bn, 5% growth YoY driven by all the business lines; gross operating income up by a strong 18% notably thanks to good cost control; reported net income²of €3.5bn, up by 26% YoY

Very high levels of solvency and liquidity with a CET1 ratio of 15.6%³ and a LCR of 142%⁴ at end-2024

RETAIL BANKING & INSURANCE Sharp 14% growth in revenues in Q4-24 and 4% in 2024 driven in particular by the confirmed rebound in net interest margins and commissions. The Banque Populaire and Caisse d’Epargne retail banking networks enjoyed sustained growth in their customer bases with the addition of 846,000 new clients⁶in 2024

Local & regional financing: €84bn of funding for our clients of individual, professional, corporate, and institutional clients; 1% year-on-year growth in loan outstandings, rising to a total of €724bn at end-December 2024
Deposits & savings⁷up by €5bn year-on-year, reaching a total of €681bn at end-December 2024
Insurance: gross inflows⁸ of €14.9bn in life insurance in 2024. Premiums up 15% in 2024 YoY. The equipment rate⁹for P&C and Personal Protection insurance stood at ~35% at end-December 2024

Financial Solutions & Expertise: net banking income remained stable in Q4-24 and rose by 2% in full-year 2024 vs. a high basis of comparison in 2023. Good performance reported by the Leasing and Consumer Credit activities
Digital & Payments: +5% growth in the number of card transactions at end-December 2024 YoY. Oney net banking income up 8% in full-year 2024

GLOBAL FINANCIAL SERVICES Strong revenue growth, +8% in Q4-24 and full-year 2024; very dynamic business development in Corporate & Investment Banking, net banking income up 5% in Q4-24 year-on-year; very good performance achieved by Asset Management with net banking income up 11% in Q4-24 year-on-year

Corporate & Investment Banking: net banking income of €1.1bn in Q4-24; +19% growth in revenues in Q4-24 YoY for Global Markets, driven by the Fixed-income and Equity segments; net banking income up 2% for Global Finance, driven in particular by Trade Finance activities, and up by 6% for Investment Banking activities in Q4-24
Asset & Wealth Management: Natixis IM’s assets under management up 13% YtD, reaching an all-time high of €1,317bn at end-December 2024; very high net fund inflows of €40bn in full-year 2024, particularly from Fixed-Income expertise; net banking income of €968m in Q4-24, reflecting strong growth of 11% YoY.

Expenses remained stable year-on-year in 2024 and good improvement in the cost/income by 3.5pp

Prudent provisioning policy: cost of risk of €2.1bn in 2024, i.e. 24bps, standing below the announced guidance level; €596 million in Q4-24, down 20% year-on-year

Financial strength: CET1 ratio of 15.6%³at end-December 2024; liquidity reserves of €302bn

VISION 2030 strategic project: fast-paced and dynamic implementation

April 2024: announcement of the project to acquire SGEF, making Groupe BPCE the European leader in equipment leasing; completion of the transaction scheduled for Q1-25.
June 2024: plan to create France’s No. 1 payment processor in partnership with BNP Paribas with a view to becoming one of the top 3 players in Europe.
June 2024: commercial partnerships with two leaders in their respective markets: Leroy Merlin and Verisure
January 2025: announcement of plan to create Europe’s leading asset manager in a joint venture with Generali.
Plans to create a shared technology platform for retail banking activities

¹ See the notes on methodology annexed to this press release ²Group share ³ Ratio estimated at end-December 2024 integrating pro forma the coming impact of SGEF and Nagelmackers acquisitions ⁴Average end-of month LCRs in Q4-24 ⁵ Estimated at end-December 2024 ⁶ 196,100 new active clients over the year ⁷ On-balance sheet savings & deposits within the scope of the Retail Banking & Insurance business unit ⁸ Excluding reinsurance treaty with CNP Assurance ⁹ Scope of the individual clients in the BP and CE retail banking networks

Nicolas Namias, Chairman of the Management Board of BPCE, said: “2024 marked the return of strong performance across all our business lines. Groupe BPCE saw its earnings grow by 26% over the year as a whole and by a total of 140% in the fourth quarter of 2024.

Banques Populaires and Caisses d’Epargne benefited from the confirmed rebound in their net interest margin along with an extremely buoyant level of commercial activity, illustrated by the arrival of 846,000 new clients in 2024. All the business lines serving the retail banking networks – Insurance, Payments, Financial Solutions & Expertise – generated growth both in full-year 2024 and in the 4^thquarter of the year. It also proved to be a remarkable quarter and full-year period for the global business lines managed by Natixis CIB and Natixis IM with, in particular, 19% revenue growth in our capital markets activities in the fourth quarter, and a record-breaking 40 billion euros in net inflows for our asset management activities in the course of the year.

These results testify to the dynamic implementation of our VISION 2030 strategic project. In the space of a year, we announced the planned acquisition of SGEF, making the Group the front-ranking European equipment leasing specialist, an initiative due to be completed early this year; the creation, with BNP Paribas, of the French leader in payment processing, with a view to becoming one of the top 3 players in Europe; plans to create a champion in asset management with Generali that would be No.1 in Europe in terms of revenues and one of the top 10 asset management specialists worldwide. Today, we announce our ambition to create a common technological platform for the Banques Populaires and Caisses d’Epargne by setting up a joint information system. Designed to further enhance the Group’s performance, this project sets out to optimize the service offered to our 35 million clients and to improve the day-to-day lives of our employees and, in the process, support the development of retail banking in France. These projects give concrete expression to our determination to pursue well-balanced development across our three priority growth areas: France, Europe, and the rest of the world.

These extremely exciting prospects for the months ahead will be driven by our staff of employees, who this year demonstrated their tremendous mobilization and enthusiasm during the Olympic & Paralympic Games Paris 2024. We gave expression to our promise to share the Games with as many people as possible in every territorial region of France. This event enabled us to strengthen our ties with our clients both in regional France and around the world, and we will continue to foster these relationships by contributing to the sustainable development of the economies in which we do business, in line with our cooperative values.”

The quarterly financial statements of Groupe BPCE for the period ended December 31, 2024, approved by the Management Board on February 3, 2025, were verified and reviewed by the Supervisory Board, at a meeting chaired by Eric Fougère on February 5, 2025.

In this document, 2023 figures have been restated on a pro-forma basis (see annex for the reconciliation of reported data to pro-forma data).

Groupe BPCE

€m¹	Q4-24	Q4-23	% Change	2024	2023	% Change
Net banking income	6,046	5,462	11%	23,317	22,198	5%
Operating expenses	(4,184)	(4,129)	1%	(16,384)	(16,328)	0%
Gross operating income	1,862	1,332	40%	6,933	5,870	18%
Cost of risk	(596)	(744)	(20)%	(2,061)	(1,731)	19%
Income before tax	1,262	537	135%	4,956	4,182	19%
Income tax	(326)	(159)	106%	(1,357)	(1,340)	1%
Net income – Group share	913	381	140%	3,520	2,804	26%
Exceptional items	(64)	(100)	(35)%	(155)	(122)	28%
Underlying²net income – Group share	977	481	103%	3,675	2,925	26%
Underlying cost to income ratio³	67.8%	74.6%	(6.8)pp	69.4%	72.9%	(3.5)pp

¹ Reported figures as far as “Net income (Group share)” ² “Underlying” means exclusive of exceptional items ³ The underlying cost/income ratio of Groupe BPCE is calculated on the basis of net banking income and operating expenses excluding exceptional items. The calculations are detailed in the annex on pages 18 and 24.

1. Groupe BPCE

Unless specified to the contrary, the financial data and related comments refer to the reported results of the Group and
business lines; changes express differences between Q4-24 and Q4-23 and between full-year 2024 and full-year 2023.

Groupe BPCE’s net banking income rose by 11% to reach 6,046 million euros in Q4-24 thanks to strong commercial activity in all business lines. At the end of December 2024, it stood at 23,317 million euros, up 5%.

Revenues from the Retail Banking & Insurance business unit (RB&I) rose 14% in Q4-24 to 4,064 million euros and stood at 15,397 million euros in full-year 2024, representing growth of 4%. Banques Populaires and Caisses d’Epargne put up a strong commercial performance, attracting more than 846,000 new clients¹ across all markets since the beginning of the year.

Revenues in the Financial Solutions & Expertise business unit, stable in Q4-24 and up 2% in full-year 2024, were driven in particular by the leasing and consumer credit businesses. The Insurance business unit benefited from strong business momentum in life insurance with gross new inflows² of 14.9 billion euros. Business was buoyant for the Digital & Payments business unit with renewed momentum for Oney.

Revenues from the Global Financial Services (GFS) business unit were up 8% in Q4-24 and full-year 2024, reaching a total of 2,055 million euros and 7,947 million euros respectively. Corporate & Investment Banking revenues, buoyed up by strong commercial performance across all its business lines, came to 1,087 million euros in Q4-24, up 5%, and to 4,440 million euros in full-year 2024, up 7%. The net banking income generated by Asset & Wealth Management stood at 968 million euros in Q4-24, up 11%, and reached a total of 3,507 million euros in full-year 2024, up 10%. Assets under management, which rose to their highest level ever thanks to record-breaking fund inflows and positive market and currency effects, rose by 13% in the course of the year to reach 1,317 billion euros.

The net interest margin stood at 7.6 billion euros, up 4% year-on-year, while commission income, which reached 11 billion euros in full-year 2024, was up 7% year-on-year.

In full-year 2024, operating expenses remained stable at 16,384 million euros, rising 1% to 4,184 million euros in Q4-24, benefitting from positive jaws effects over the 2 periods.

The underlying cost/income ratio³ improved by 6.8pp in Q4-24 to 67.8%, and by 3.5pp in full-year 2024 to 69.4%

Gross operating income rose by 40% to 1,862 million euros in Q4-24, and by 18% to 6,933 million euros in full-year 2024.

Groupe BPCE’s cost of risk, which came to -2,061 million euros in 2024, increased by a total of 19% vs. a low basis of comparison in 2023. In Q4-24, it stood at -596 million euros, down 20%.

Performing loans are deemed to be rated ‘Stage 1’ or ‘Stage 2,’ while loans with proven risk are rated ‘Stage 3.’

¹ 196,100 new active clients in full-year 2024 ² Excluding the reinsurance treaty with CNP Assurances³ The underlying cost/income ratio of Groupe BPCE is calculated on the basis of net banking income and operating expenses excluding exceptional items. The calculations are detailed in the annex on page 24

For Groupe BPCE, the amount of provisions for performing loans rated ‘Stage 1’ or ‘Stage 2’ corresponds:

For the quarter, to a reversal of 31 million euros in Q4-24 vs. an allocation of 34 million euros in Q3-24 and vs. an allocation of 145 million euros in Q4-23,
For the 12-month period, a reversal of 177 million euros in 2024 vs. a reversal of 112 million euros in 2023.

Provisions for loan outstandings with proven risk, rated ‘Stage 3,’ correspond:

For the quarter, to an allocation of 627 million euros in Q4-24 vs. an allocation of 488 million euros in Q3-24 and vs. an allocation of 598 million euros in Q4-23,
For the 12-month period, an allocation of 2,238 million euros in 2024 vs. an allocation of 1,843 million euros in 2023.

In Q4-24, the cost of risk for Groupe BPCE stood at 28bps in terms of gross customer outstandings, down 7bps. This figure includes a reversal of 1bp on performing loans (vs. an allocation of 7bps in Q4-23) and an allocation on loan outstandings with proven risk of 29bps vs. an allocation of 28bps in Q4-23.
In Q4-24, the cost of risk remained stable for the Retail Banking & Insurance business unit at 30bps, including a 1bp provision for performing loans (vs. a 5bps allocation to provisions in Q4-23) and a 30bps allocation on loan outstandings with proven risk, as in Q4-23.
The cost of risk for the Corporate & Investment Banking business unit came to 55bps (vs. 37bps in Q4-23), including a 13bps reversal on performing loans (vs. a 16bps provision in Q4-23) and a 67bps provision on loans with proven risk (vs. a 21bps provision in Q4-23).

In 2024, Groupe BPCE’s cost of risk stood at 24bps of gross customer loan outstandings. This figure includes a 2bps reversal of provisions on performing loans (vs. a 1bp reversal in 2023) and a 26bps provision on loans with proven risk (vs. a 22bps provision in 2023).
The cost of risk was 24bps for the Retail Banking & Insurance business unit (21bps in 2023), including a 2bps reversal on performing loans (as in 2023) and a 26bps provision on loans with proven risk (vs. a 23bps provision in 2023).
The cost of risk for the Corporate & Investment Banking business unit came to 40bps (24bps in 2023), including a 6bps reversal on performing loans (vs. a 4bps reversal in 2023) and a 46bps provision on loans with proven risk (vs. a 28bps provision in 2023).

The ratio of non-performing loans to gross loan outstandings stood at 2.5% at December 31, 2024, up 0.1pp compared with end-December 2023.

Reported net income (Group share) came to 913 million euros in Q4-24, up 140%. In full-year 2024, it stood at 3,520 million euros, up 26%.

The impact of exceptional items on net income (Group share) was -64 million euros in Q4-24 vs. -100 million euros in Q4-23 and -155 million euros in full-year 2024 vs. -122 million euros in full-year 2023.

Underlying net income (Group share)¹ rose by 103% to stand at 977 million euros in Q4-24, and grew by 26% to 3,675 million euros in full-year 2024.

1 “Underlying” means exclusive of exceptional items

2. A Group mobilized to decarbonize the economy and committed to making impact accessible to all

Strong commitments in 2024

Climate commitments:

The Group has published new decarbonization ambitions for the 11¹ most highly emissive industrial sectors: Aluminum, Aviation, Commercial real estate, Residential real estate, Agriculture, Automotive, Steel and Cement, and has strengthened its ambitions in the Power Generation and Oil & Gas sectors.

Environmental commitments:

Groupe BPCE has strengthened its commitment by joining act4nature international.

Social commitments by providing financing for players in the social & solidarity-based economy, in social housing and the Public Sector.

Innovative and concrete actions for our clients

The Banques Populaires and Caisses d’Epargne retail banking networks have launched innovations to facilitate home ownership and offer all individual customers energy-efficient renovation solutions to preserve the value of their real-estate assets: for example, by the end of November 2024, over 640 million euros in financing had been granted for energy-efficient home renovation, and the Advice and Sustainable Solutions digital module had received over 5 million unique visitors.
The Group serves the SME and ISE clients of the Banques Populaires and Caisses d’Epargne, as well as local communities by providing locally-based advice and by financing the transition of their business models. It has also strengthened its partnership with the European Investment Bank (EIB) for the innovation and energy transition with over one billion euros in transition and decarbonization financing.
Green revenues in the CIB rose by +14% in 2024 YoY, driven by sustainable finance and renewable energy & new energy activities including tailored-made solutions and dedicated expertise provided by the Green Hub.

Groupe BPCE, a pioneer in sustainable finance, launched 5 green and social bond issues in the course of 2024 for an aggregate value of more than 3.6 billion euros, including the 1^st Social Bond with a profit-sharing coupon for the benefit of the Institut Robert-Debré du Cerveau de l’Enfant (Children’s Brain Development Institute), supported by APHP (Paris Public Hospitals).

¹ Given the insignificant amount of Natixis CIB’s financing dedicated to freight and passenger ships, Groupe BPCE has not published its action plan for this industrial sector

3. Capital, loss-absorbing capacity, liquidity, and funding

3.1 CET1¹ratio

Groupe BPCE’s CET1 ratio at end-December 2024 stood at an estimated 16.2%, unchanged from the previous quarter. It includes the following impacts:

Retained earnings: +21bps,
Net issuance of cooperative shares: +3bps,
Change in risk-weighted assets: – 33bps,
Other changes, including variations in the prudential backstop provision, items included under Other Comprehensive Income, and other adjustments: +4bps.

The Group’s CET1 ratio – presented on a pro-forma basis to reflect the inclusion of the future impacts of the SGEF and Nagelmackers acquisitions (-54bps) – stands at 15.6%,

At end-December 2024, Groupe BPCE held an equity buffer estimated at 18.6 billion euros above the threshold for triggering the maximum distributable amount (MDA) for equity capital, taking account of the prudential requirements laid down by the ECB applicable on January 2, 2025.

3.2 TLAC ratio¹

The Total Loss-Absorbing Capacity (TLAC) stood at an estimated 122.1 billion euros at the end of December 2024. The TLAC ratio, expressed as a percentage of risk-weighted assets, stood at an estimated 26.7%² at the end of December 2024 (without taking account of preferred senior debt for the calculation of this ratio), well above the standard requirements of the Financial Stability Board that were equal to 22.4% at January 2, 2025.

3.3 MREL ratio¹

Expressed as a percentage of risk-weighted assets at December 31, 2024, Groupe BPCE’s subordinated MREL ratio (without taking account of preferred senior debt for the calculation of this ratio) and the total MREL ratio stood at 26.7%² and 34.6%, well above the minimum requirements laid down by the SRB at January 2, 2025 of 22.4%³ and 27.3%³ respectively.

3.4 Leverage ratio¹

At December 31, 2024, the estimated leverage ratio stood at 5.1%, well above the requirement.

3.5 Liquidity reserves at a high level

The LCR (Liquidity Coverage Ratio) for Groupe BPCE is well above the regulatory requirement of 100%, at an average of 142% of month-end LCRs for the 4^th quarter 2024.
Liquidity reserves stood at 302 billion euros at December 2024, representing a coverage ratio of 177% of short-term financial debt (including short-term maturities of medium- to long-term financial debt).

3.6 MLT funding plan: 32% of the 2025 objectives completed as at January 31, 2025

The size of the MLT funding plan, excluding structured private placements and Asset Backed Securities (ABS), has been set at 23 billion euros for 2025. The breakdown per type of debt is as follows:

10 billion euros in TLAC funding: 2.0 billion euros in Tier 2 funding and 8 billion euros in senior non-preferred debt,
3 billion euros senior preferred debt,
10 billion euros in covered bonds.

The target for ABS is 8 billion euros.

At January 31, 2025, Groupe BPCE had raised 7.3 billion euros, excluding structured private placements and ABS (32% of the 23 billion euro funding plan):

5.6 billion euros in TLAC funding: 1.7 billion euros in Tier 2 funding (87% of requirements) and 3.9 billion euros in senior non-preferred debt (49% of requirements),
1.7 billion euros in covered bonds (17% of requirements).

At January 31, 2025, the amount of ABS raised came to a total of 0.7 billion euros, i.e. 8% of the target.

Capital adequacy, Total loss-absorbing capacity – see the note on methodology
¹ Estimated at December 31, 2024 ² Groupe BPCE has chosen to waive the possibility provided by Article 72 Ter (3) of the Capital Requirements Regulation (CRR) to use senior preferred debt to ensure compliance with its TLAC/subordinated MREL requirements. ³ Following reception of MREL’s annual letter for 2024

4. Results of the business lines

4.1 Retail Banking & Insurance

€m¹	Q4-24	% Change	2024	% Change
Net banking income	4,064	14%	15,397	4%
Operating expenses	(2,497)	(0)%	(9,902)	1%
Gross operating income	1,567	45%	5,495	10%
Cost of risk	(556)	(13)%	(1,751)	16%
Income before tax	998	142%	3,807	8%
Exceptional items	(45)	(60)%	(115)	3%
Underlying²income before tax	1,044	98%	3,922	8%
Underlying cost/income ratio³	60.4%	(8.5)pp	63.6%	(2.2)pp

At end-December 2024, loan outstandings rose by 1% to 724 billion euros. Outstanding home loans remained stables at 400 billion euros, while equipment loans rose by 3% during the year to 199 billion euros.

At end-December 2024, on-balance sheet customer deposits & savings totaled 681 billion euros, representing an increase of 5 billion euros year-on-year, with a 5% rise in term accounts and a 3% year-on-year increase in both regulated and unregulated passbook savings accounts.

Net banking income for the Retail Banking & Insurance business unit rose by 14% in Q4-24 to 4,064 million euros, and by 4% in full-year 2024 to 15,397 million euros. In Q4-24, these changes reflect the good level of business activities: in the networks, revenues rose by 17% for the Banque Populaire retail banking network and by 14% for the Caisse d’Épargne network. Net banking income for both networks also recorded growth in full-year 2024, by 4% for the Banque Populaire network and by 3% for the Caisse d’Épargne network.

The Financial Solutions & Expertise business lines continued to benefit from strong sales momentum, particularly in the leasing segment. Revenues remained stable in Q4-24 but saw 2% growth in full-year 2024. In Insurance, premiums⁴ rose by 15% in 2024, driven by both Non-Life Insurance and Life & Personal Protection Insurance. The Digital & Payments business unit reported a 14% increase in revenues in Q4-24 and 7% growth in full-year 2024, driven by card transactions and instant payment operations.

Operating expenses remained tightly managed, stable in Q4-24 at 2,497 million euros, and up by just 1% in full-year 2024 to 9,902 million euros.

The underlying cost/income ratio³ improved by 8.5pp in Q4-24 to 60.4%, and by 2.2pp in full-year 2024 to 63.6%.

The business unit’s gross operating income benefited from a strong positive jaws effect, rising by 45% in Q4-24 to
1,567 million euros and by 10% in full-year 2024 to 5,495 million euros.

The cost of risk amounted to -556 million euros in Q4-24, down 13%, and stood at -1,751 million euros in 2024, up 16%.

For the business unit as a whole, income before tax amounted to 998 million euros in Q4-24, up 142%, and stood at 3,807 million in full-year 2024, up 8%.

Underlying income before tax² amounted to 1,044 million euros in Q4-24, up 98%, and came to 3,922 million euros in full-year 2024, up 8%.

4.1.1 Banque Populaire network
The Banque Populaire retail banking network is comprised of 14 cooperative banks (12 regional Banques Populaires along
with CASDEN Banque Populaire and Crédit Coopératif) and their subsidiaries, Crédit Maritime Mutuel, and the Mutual
Guarantee Companies.

€m¹	Q4-24	% Change	2024	% Change
Net banking income	1,614	17%	6,098	4%
Operating expenses	(980)	1%	(4,047)	2%
Gross operating income	634	56%	2,051	8%
Cost of risk	(266)	(6)%	(814)	25%
Income before tax	352	137%	1,285	(2)%
Exceptional items	(17)	77%	(51)	ns
Underlying²income before tax	369	133%	1,336	2%
Underlying cost/income ratio³	59.7%	(10.2)pp	65.5%	(1.9)pp

Loan outstandings remained stable year-on-year, standing at 301 billion euros at the end of December 2024.
On-balance sheet customer deposits & savings decreased by 2 billion euros year-on-year at the end of December 2024, with term accounts remaining stable during the 12-month period, while both regulated and unregulated passbook savings accounts saw 2% year-on-year growth.

Net banking income came to 6,098 million euros in full-year 2024, up 4% year-on-year. This included 3.2 billion euros in net interest margin^4,5 up 5% year-on-year, and 2.9 billion euros in commissions⁵ (up 3% year-on-year).
In Q4-24, net banking income came to a total of 1,614 million euros, up 17% year-on-year.

Operating expenses rose by a limited 1% in Q4-24 to 980 million euros, and increased by 2% in full-year 2024, to 4,047 million euros.
The underlying cost/income ratio³ consequently saw a 10.2pp improvement in Q4-24, to 59.7%, and a 1.9pp improvement in full-year 2024, to 65.5%.

Gross operating income benefited from positive jaws effects, rising by 56% to 634 million euros in Q4-24 and by 8% to 2,051 million euros in full-year 2024.

The cost of risk stood at -266 million euros in Q4-24, down 6%, and -814 million euros in 2024, up 25%.

Income before tax came to 352 million euros in Q4-24 (+137%) and 1,285 million euros in 2024 (-2%).

Underlying income before tax² amounted to 369 million euros in Q4-24 (+133%) and 1,336 million euros in full-year 2024
(+2%).

¹ Reported figures until “Income before tax” ² “Underlying” means exclusive of exceptional items ³ The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses ⁴ Excluding provisions for home-purchase savings schemes ⁵ Income on regulated savings has been restated to account for the net interest margin and included under commissions

4.1.2 Caisse d’Epargne network
The Caisse d’Epargne retail banking network comprises 15 individual Caisses d’Epargne along with their subsidiaries

€m¹	Q4-24	% Change	2024	% Change
Net banking income	1,616	14%	6,054	3%
Operating expenses	(1,084)	0%	(4,216)	1%
Gross operating income	531	55%	1,838	10%
Cost of risk	(205)	(6)%	(640)	16%
Income before tax	328	161%	1,200	7%
Exceptional items	(27)	171%	(60)	ns
Underlying²income before tax	355	162%	1,260	13%
Underlying cost/income ratio³	65.4%	(9.8)pp	68.7%	(2.7)pp

Loan outstandings rose by 1% year-on-year to 376 billion euros at the end of December 2024.
On-balance sheet customer deposits & savings increased by 5 billion euros year-on-year, with growth in term accounts (+12%) and an increase in regulated and unregulated passbook savings accounts (+3%).

Net banking income rose by 3% to reach 6,054 million euros in full-year 2024, including:

2.6 billion euros in net interest margin^4,5, down 3% year-on-year,
3.4 billion euros in commissions⁵ up 7% year-on-year.

Net banking income came to a total of 1,616 million euros, up 14% year-on-year, in Q4-24 and stood at 6,054 million euros, up 3% year-on-year in full-year 2024.

Operating expenses remained stable at 1,084 million euros in Q4-24, and rose by 1% in full-year 2024 to 4,216 million euros.

The underlying cost/income ratio³ improved by 9.8pp to 65.4% in Q4-24 and by 2.7pp to 68.7% in full-year 2024.

Gross operating income benefited from positive jaws effects in Q4-24 (+55%), rising to 531 million euros, and enjoyed 10% growth in full-year 2024, rising to 1,838 million euros.

The cost of risk came to -205 million euros in Q4-24, down 6%, and to -640 million euros in 2024, up 16%.

Income before tax rose by 161% to 328 million euros in Q4-24, and came to 1,200 million euros in 2024.
(+7%).

Underlying income before tax² amounted to 355 million euros in Q4-24 (+162%) and 1,260 million euros in full-year 2024
(+13%).

4.1.3 Financial Solutions & Expertise

€m¹	Q4-24	% Change	2024	% Change
Net banking income	334	(0)%	1,303	2%
Operating expenses	(169)	1%	(636)	1%
Gross operating income	165	(2)%	667	3%
Cost of risk	(38)	(30)%	(108)	11%
Income before tax	125	11%	555	2%
Exceptional items	0	ns	0	ns
Underlying²income before tax	125	11%	555	1%
Underlying cost/income ratio³	50.7%	1.0pp	48.8%	(0.3)pp

Sales momentum remained strong in services designed for individual customers, particularly in consumer credit, with average loan outstandings (personal loans and revolving credit) up 7% year-on-year, consolidating the Group’s position as France’s leading bank for consumer credit.

The Leasing activity continued to provide robust support to companies with growth in average outstandings (+10% year-on-year) chiefly driven by equipment leasing (+17%). Energéco, a player committed to the renewable energies sector, had an exceptional year with production exceeding, for the first time, one billion transactions arranged.

Despite the unfavorable business environment, the business lines working in the housing and real estate sector demonstrated their resilience with confirmation in Q4-2024 of the positive upturn of activity in personal loan guarantees, leading to an increase in gross written premiums (+2% in Q4-24 year-on-year vs. -40% in the first 9 months of 2024).

Net banking income for the Financial Solutions & Expertise business unit remained stable at 334 million euros in Q4-24, but rose 2% to 1,303 million euros in full-year 2024.

Operating expenses, which stood at 169 million euros in Q4-24 and 636 million euros in full-year 2024, remained tightly managed.

The underlying cost/income ratio³ increased by 1.0pp in Q4-24 to 50.7% and improved by 0.3pp in full-year 2024 to 48.8%.

Gross operating income, which came to 165 million euros in Q4-24, was down 2%; it stood at 667 million euros in full-year 2024, up 3%.

The cost of risk stood at -38 million euros in Q4-24, down 30%, and at -108 million euros in full-year 2024 (+11%).

Income before tax rose by 11% to 125 million euros in Q4-24 and increased by 2% to 555 million euros in full-year 2024.

Underlying income before tax² rose by 11% in Q4-24 and by 1% in full-year 2024, to 125 million euros and 555 million euros respectively.

4.1.4 Insurance¹
The results presented below concern the Insurance business unit held directly by BPCE since March 1, 2022.

€m²	Q4-24	% Change	2024	% Change
Net banking income	171	17%	694	10%
Operating expenses³	(36)	(10)%⁴	(143)	(12)%⁴
Gross operating income	135	28%	550	17%
Income before tax	141	32%	566	19%
Exceptional items	0	ns	0	ns
Underlying⁵income before tax	141	30%	566	17%
Underlying cost/income ratio⁶	21.3%	(5.3)pp	20.7%	(4.1)pp

In Q4-24, premiums⁷ reached 4.8 billion euros, up 12% thanks to the considerable dynamism demonstrated by Life Insurance and Life & Personal Protection insurance. In full-year 2024, premiums⁷ rose by 15% to 18.6 billion euros, with a 16% increase for Life & Personal Protection insurance and a 9% increase for Property & Casualty insurance.

Life insurance assets under management⁷ reached 103 billion euros at the end of December 2024 thanks to record-breaking net inflows in both euro funds and unit-linked products. Since the end of December 2023, life insurance assets have risen by 12%, driven by significant positive inflows in both euro funds and unit-linked products. Gross inflows⁷ in life insurance stood at 14.9 billion euros in 2024. Unit-linked products accounted for 53% of inflows⁷ at the end of December 2024.

In the Property & Casualty segment, the client equipment rate for both networks was approximately 35%⁸ at the end of December 2024, up 0.5pp since the end of December 2023.

Net banking income rose by 17% in Q4-24 to 171 million euros, and rose by 10% to 694 million euros in full-year 2024.

Operating expenses³ fell by 10%⁴ year-on-year in Q4-24 to 36 million euros, and by 12%⁴ in full-year 2024 to 143 million euros.

The underlying cost/income ratio⁶ improved by 5.3pp to stand at 21.3% in Q4-24, and improved by 4.1pp to reach 20.7% in full-year 2024.

Thanks to positive jaws effects in Q4-24 and full-year 2024, EBITDA rose by 28% and 17% respectively.

Income before tax also improved, rising by 32% to 141 million euros in Q4-24 and by 19% to 566 million euros in full-year 2024.

Underlying⁵income before tax came to 141 million euros in Q4-24 (+30%) and to 566 million euros in full-year 2024 (+17%).

¹ BPCE Assurances ² Reported figures until “Income before tax” ³ “Operating expenses” corresponds to “non-attributable expenses” under IFRS 17, i.e. all costs that are not directly attributable to insurance contracts ⁴ At constant method: +7% in Q4-24 YoY and +4% in 2024 YoY ⁵ “Underlying” means exclusive of exceptional items ⁶ The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses ⁷ Excluding reinsurance treaty with CNP Assurance
⁸ Scope: combined individual clients of the BP and CE networks

4.1.5 Digital & Payments

€m¹	Q4-24	% Change	2024	% Change
Net banking income	227	14%	873	7%
o/w Payments	128	10%	491	6%
o/w Oney	99	19%	382	8%
Operating expenses	(173)	1%	(646)	(1)%
o/w Payments	(108)	9%	(394)	3%
o/w Oney	(65)	(10)%	(252)	(7)%
Gross operating income	54	96%	227	39%
Cost of risk	(33)	(52)%	(126)	(26)%
Income before tax	20	ns	97	ns
Exceptional items	(1)	(99)%	(5)	(96)%
Underlying²income before tax	21	ns	102	125%
Underlying cost/income ratio³	76.2%	(3.5)pp	73.9%	(2.1)pp

Digital & AI

At the end of December 2024, 11.8 million customers were active on Banques Populaires and Caisses d’Epargne mobile applications (up 3% vs. end-December 2023).

The “AI for all” in-house generative AI solution was being used by over 26,000 employees at the end of December 2024 (i.e. 25% of all Group employees.)

Thanks to transformative AI, 10 million documents had been verified automatically (+71%) by end-December 2024.

Payments

Net banking income enjoyed 10% growth in Q4-24 and 6% growth in full-year 2024, while operating expenses rose 9% in Q4-24 and 3% in full-year 2024.

The widespread use of Wero (European Payments Initiative) enables all customers to send and receive money via instant account-to-account payments in less than 10 seconds. Wero handles 2 million transactions per month and serves over 2 million active customers.

In the Payment Solutions business, the number of card transactions rose by 5% year-on-year, with continued growth in mobile and instant payments (+54% and +49% year-on-year respectively) and the ongoing rollout of Android POS terminals (multiplied by a factor of 2). The launch of Google Pay has strengthened our range of mobile products.

Oney Bank

Net banking income rose by 8% in 2024 thanks to improved margin rates and the asset repricing effect. Oney maintained its leadership position in the BNPL⁴ segment in France while business was robust in Europe outside France (+19% in volumes year-on-year).

Management expenses remained well under control, falling by 7% in full-year 2024.

The sharp drop in the cost of risk in 2024 (-26% YoY) confirms the positive impact of our action plans.
Net banking income for the Digital & Payments business unit rose by 14% in Q4-24 and by 7% in full-year 2024, to reach 227 million euros and 873 million euros respectively.

The business unit’s operating expenses were up 1% in Q4-24 and down 1% in full-year 2024, to reach 173 million euros and 646 million euros respectively.

This led to a 3.5pp improvement in the underlying cost/income ratio³ to 76.2% in Q4-24 and a 2.1pp improvement to 73.9% in full-year 2024.

Gross operating income, which benefitted from positive jaws effects, rose by 96% in Q4-24 to 54 million euros, and by 39% to 227 million euros in full-year 2024.

The cost of risk fell by 52% in Q4-24 to -33 million euros, and by 26% in full-year 2024 to -126 million euros.

Income before tax amounted to 20 million euros in Q4-24 and 97 million euros full-year 2024.

Underlying²income before tax came to 21 million euros in Q4-24 and 102 million euros in full-year 2024, equal to a sharp rise of 125%.

4.2 Global Financial Services
The GFS business unit includes the Asset & Wealth Management activities and the Corporate & Investment Banking activities of
Natixis.

€m¹	Q4-24	% Change	Constant Fx % change	2024	% Change	Constant Fx % change
Net banking income	2,055	8%	7%	7,947	8%	8%
o/w CIB	1,087	5%	5%	4,440	7%	7%
o/w AWM	968	11%	10%	3,507	10%	10%
Operating expenses	(1,501)	8%	7%	(5,651)	7%	7%
o/w CIB	(738)	5%	5%	(2,889)	8%	8%
o/w AWM	(763)	11%	10%	(2,763)	6%	6%
Gross operating income	553	8%	7%	2,296	10%	10%
Cost of risk	(86)	18%		(268)	73%
Income before tax	479	14%		2,051	4%
Exceptional items	0	ns		0	ns
Underlying²income before tax	479	10%		2,051	3%
Underlying cost/income ratio³	73.1%	0.7pp		71.1%	(0.1)pp

GFS revenues rose by 8% in both Q4-24 and full-year 2024 to respectively 2,055 million euros (+7% at constant exchange rates) and 7,947 million euros (+8% at constant exchange rates). These trends are the result of the robust performance of our global business lines.

In Q4-24, revenues generated by the Corporate & Investment Banking business rose by 5% to 1,087 million euros thanks, in particular, to the strong performance achieved by the Global Markets (+19%) and Global Finance (+2%) activities in full-year 2024. Net banking income for the CIB business in full-year 2024 rose by 7% to 4,440 million euros.

In Q4-24, Asset & Wealth Management revenues rose 10% at constant exchange rates to 968 million euros, chiefly thanks to higher management fees year-on-year. Assets under management rose by 13% since the begging of the year to reach a historic high of 1,317 billion euros, with record inflows and a strong positive market and change effects.

GFS operating expenses increased by 8% in Q4-24 and by 7% in 2024, to respectively 1,501 million euros (+7% at constant exchange rates) and 5,651 million euros (+7% at constant exchange rates). This rise in expenses is in line with revenue growth, leading to positive jaws effects in full-year 2024.

In Q4-24, Corporate & Investment Banking operating expenses rose by 5% in line with revenue growth. Asset & Wealth Management expenses rose by 10% at constant exchange rates in Q4-24.

The underlying cost/income ratio³ was 73.1% in Q4-24 and 71.1% in full-year 2024, up 0.7pp and down 0.1pp respectively.

Gross operating income rose 8% in Q4-24 to 553 million euros (+7% at constant exchange rates); it rose 10% in full-year 2024 to 2,296 million euros (+10% at constant exchange rates).

The cost of risk increased by 18% in Q4-24 and by 73% in full-year 2024, to -86 million euros and -268 million euros respectively.

Income before tax rose by 14% in Q4-24 to 479 million euros, and by 4% in full-year 2024 to 2,051 million euros.

Underlying²income before tax for Q4-24 was 479 million euros, up 10%, and stood at 2,051 million euros in full-year 2024, up 3%.

4.2.1 Corporate & Investment Banking
The Corporate & Investment Banking (CIB) business unit includes the Global markets, Global finance, Investment banking and
M&A activities of Natixis.

€m¹	Q4-24	% Change	2024	% Change
Net banking income	1,087	5%	4,440	7%
Operating expenses	(738)	5%	(2,889)	8%
Gross operating income	349	5%	1,551	3%
Cost of risk	(98)	60%	(282)	78%
Income before tax	262	3%	1,293	(3)%
Exceptional items	0	ns	0	ns
Underlying²income before tax	262	1%	1,293	(4)%
Underlying cost/income ratio³	67.9%	0.2pp	65.1%	1.2pp

Global Markets revenues rose by 19% to 452 million euros in full-year 2024. Revenues generated by the Equity business rose 53% to 96 million euros in Q4-24, driven by a strong performance in the Global Securities Financing activity. FIC-T revenues rose by 14% to 354 million euros in Q4-24, driven by a strong performance in the Credit and Foreign Exchange segments.

Global Finance revenues were up 2%, rising to 466 million euros in Q4-24 thanks to the sustained momentum of Trade Finance activities.

Investment Banking revenues were up 6% to 50 million euros in Q4-24, driven by the Acquisition & Strategic Finance and SECM business lines.
The M&A business lines recorded revenues of 361 million euros in full-year 2024, up 11% year-on-year.
Natixis Partners has acquired a stake in Financière de Courcelles in order to strengthen its position in the French M&A market within the small, mid, and upper mid-cap segments.

Net banking income generated by the Corporate & Investment Banking business unit rose by 5% in Q4-24 and by 7% in full-year 2024, to 1,087 million euros and 4,440 million euros respectively.

Operating expenses, which stood at 738 million euros in Q4-24, reflect 5% growth; expenses rose 8% in full-year 2024 to 2,889 million euros, in line with revenue growth.

The underlying cost/income ratio³ increased by 0.2pp to 67.9% in Q4-24, and by 1.2pp to 65.1% in full-year 2024.

Gross operating income rose by 5% in Q4-24 to 349 million euros, and by 3% in full-year 2024 to 1,551 million euros.

The cost of risk stood at -98 million euros, up 60%, in Q4-24, and at -282 million euros, up 78%, in full-year 2024.

Income before tax was up 3% to 262 million euros in Q4-24, and down 3% to 1,293 million euros in full-year 2024.

Underlying²income before tax was up 1% to 262 million euros in Q4-24, and down 4% to 1,293 million euros in full-year 2024.

4.2.2 Asset & Wealth Management
The business unit includes the Asset & Wealth Management activities of Natixis.

€m¹	Q4-24	% Change	2024	% Change
Net banking income	968	11%	3,507	10%
Operating expenses	(763)	11%	(2,763)	6%
Gross operating income	205	12%	744	27%
Income before tax	217	32%	759	21%
Exceptional items	0	ns	0	ns
Underlying²income before tax	217	24%	759	16%
Underlying cost/income ratio³	78.8%	1.0pp	78.8%	(2.0)pp

In Asset Management, assets under management⁴ reached an all-time high of 1,317 billion euros at the end of December 2024, up 13% since the beginning of the year, with record net inflows and strong positive market and currency effects.

Net inflows into Asset Management⁴ reached 40 billion euros in full-year 2024, chiefly thanks to fixed-income products from Loomis Sayles and DNCA, and to life insurance products. Private asset inflows remained positive on an annual basis.

ESG assets accounted for 40.3% of assets under management at the end of December 2024.

Asset management revenues grew at constant exchange rates by 10% in full-year 2024 but also in Q4-2024, driven by a higher level of average assets under management (+10% in Q4-2024).

In Asset Management⁴ in full-year 2024, the total fee rate (excluding performance fees) stood at 25.2bps (stable) and at 36.8bps excluding insurance asset management (-1.1bp).

Net banking income for the Asset & Wealth Management business unit rose by 11% in Q4-24 to 968 million euros, and by 10% in full-year 2024 to 3,507 million euros.

Operating expenses came to 763 million euros, up 11% in Q4-24, and to 2,763 million euros, up 6% in full-year 2024.

The underlying cost/income ratio³increased by 1.0pp in Q4-24 to 78.8%, and improved by 2.0pp in full-year 2024 to 78.8%.

Gross operating income rose by 12% to 205 million euros in Q4-24, and by 27% to 744 million euros in full-year 2024.

Income before tax came to 217 million euros in Q4-24 (+32%), and to 759 million euros in full-year 2024 (+21%).

Underlying²income before tax rose by 24% to 217 million euros in Q4-24, and by 16% to 759 million euros in full-year 2024.

¹ Reported figures until “Income before tax” ² “Underlying” means exclusive of exceptional items ³ The business line cost/income ratios have been calculated on the basis of net banking income and underlying operating expenses ⁴ Asset management: Europe includes Dynamic Solutions and Vega IM; North America includes WCM IM; excluding Wealth Management

ANNEXES

Notes on methodology

Presentation on the pro-forma quarterly results

The 2023 quarterly series are presented pro forma with changes in standards and organization:
The sectoral reallocation of the results of the private equity activities of the entities BP Développement & CE Développement from Corporate center to RB&I and GFS divisions.
The new management standards adopted by Natixis (including the normative allocation of capital to the business lines) within the GFS division.
The main evolutions impact RB&I, GFS and the Corporate center.
The data for 2023 has been recalculated to obtain a like-for-like basis of comparison.
The quarterly series of Groupe BPCE remain unchanged.
The tables showing the transition from reported 2023 to pro-forma 2023 are presented on annexes.

Exceptional items

Exceptional items and the reconciliation of the reported income statement to the underlying income statement of Groupe BPCE are detailed in the annexes.

Net banking income

Customer net interest income, excluding regulated home savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products (Livret A, Livret Développement Durable, Livret Épargne Logement passbook savings accounts) in addition to changes in provisions for regulated home purchase savings schemes. Net interest on centralized savings is assimilated to commissions.

Operating expenses

Operating expenses correspond to the aggregate total of the “Operating Expenses” (as presented in the second amendment of Group’s universal registration document, note 4.7 appended to the consolidated financial statements of Groupe BPCE) and “Depreciation, amortization and impairment for property, plant and equipment and intangible assets.”

Cost/income ratio

Groupe BPCE’s cost/income ratio is calculated on the basis of net banking income and operating expenses excluding exceptional items. The calculations are detailed in the annexes.
Business line cost/income ratios are calculated on the basis of underlying net banking income and operating expenses.

Cost of risk

The cost of risk is expressed in basis points and measures the level of risk per business line as a percentage of the volume of loan outstandings; it is calculated by comparing net provisions booked with respect to credit risks of the period to gross customer loan outstandings at the beginning of the period.

Loan oustandings and deposits & savings

Restatements regarding transitions from book outstandings to outstandings under management are as follows:
Loan outstandings: the scope of outstandings under management does not include securities classified as customer loans and receivables and other securities classified as financial operations,
Deposits & savings: the scope of outstandings under management does not include debt securities (certificates of deposit and savings bonds).

Capital Adequacy

Common Equity Tier 1 is determined in accordance with the applicable CRR II/CRD IV rules, after deductions.
Additional Tier-1 capital takes account of subordinated debt issues that have become non-eligible and subject to ceilings at the phase-out rate in force.
The leverage ratio is calculated in accordance with the applicable CRR II/CRD V rules. Centralized outstandings of regulated savings are excluded from the leverage exposures as are Central Bank exposures for a limited period of time (pursuant to ECB decision 2021/27 of June 18, 2021).

Total loss-absorbing capacity

The amount of liabilities eligible for inclusion in the numerator used to calculate the Total Loss-Absorbing Capacity (TLAC) ratio is determined by article 92a of CRR. Please note that a quantum of Senior Preferred securities has not been included in our calculation of TLAC.
This amount is consequently comprised of the 4 following items:

Common Equity Tier 1 in accordance with the applicable CRR II/CRD IV rules,
Additional Tier-1 capital in accordance with the applicable CRR II/CRD IV rules,
Tier-2 capital in accordance with the applicable CRR II/CRD IV rules,
Subordinated liabilities not recognized in the capital mentioned above and whose residual maturity is greater than 1 year, namely:
- The share of additional Tier-1 capital instruments not recognized in common equity (i.e. included in the phase-out),
- The share of the prudential discount on Tier-2 capital instruments whose residual maturity is greater than 1 year,
- The nominal amount of Senior Non-Preferred securities maturing in more than 1 year.

Liquidity

Total liquidity reserves comprise the following:

Central bank-eligible assets include: ECB-eligible securities not eligible for the LCR, taken for their ECB valuation (after ECB haircut), securities retained (securitization and covered bonds) that are available and ECB-eligible taken for their ECB valuation (after ECB haircut) and private receivables available and eligible for central bank funding (ECB and the Federal Reserve), net of central bank funding,
LCR eligible assets comprising the Group’s LCR reserve taken for their LCR valuation,
Liquid assets placed with central banks (ECB and the Federal Reserve), net of US Money Market Funds deposits and to which fiduciary money is added.

Short-term funding corresponds to funding with an initial maturity of less than, or equal to, 1 year and the short-term maturities of medium-/long-term debt correspond to debt with an initial maturity date of more than 1 year maturing within the next 12 months.
Customer deposits are subject to the following adjustments:

Addition of security issues placed by the Banque Populaire and Caisse d’Epargne retail banking networks with their customers, and certain operations carried out with counterparties comparable to customer deposits
Withdrawal of short-term deposits held by certain financial customers collected by Natixis in pursuit of its intermediation activities.

Business line indicators – BP & CE networks

Average rate (%) for residential mortgages: the average client rate for residential mortgages corresponds to the weighted average of actuarial rates for committed residential mortgages, excluding ancillary items (application fees, guarantees, creditor insurance). The rates are weighted by the amounts committed (offers made, net of cancellations) over the period under review. The calculation is based on aggregate residential mortgages, excluding zero interest rate loans.

Average rate (%) for consumer loans: the average client rate for consumer loans corresponds to the weighted average of the actuarial rates for committed consumer loans, excluding ancillary items (application fees, guarantees, creditor insurance). The rates are weighted by the amounts committed (offers made net of cancellations) over the period under review. The calculation is based on the scope of amortizable consumer loans, excluding overdraft and revolving loans.

Average rate (%) for equipment loans: the average customer rate for equipment loans is the average of the actuarial rates for equipment loans in each volume-weighted market.

Digital indicators

The number of active customers using mobile apps corresponds to the number of customers who have made at least one visit via one mobile apps over one month.
The number of documents checked automatically corresponds to the number of documents transmitted by customers through their digital spaces or in a physical branch and checked automatically: eligibility for the LEP popular passbook savings account and customer intelligence documents (KYC) for consumer loans, mortgages (digital) and new business relationships (digital and physical branches).

Impact indicators

Financing for energy-efficient home renovation for individual clients: this indicator calculates the aggregate annual production of loans granted to individual customers (natural persons) to finance energy renovation work, expressed in €m:

– Rénovation Energétique (Energy Renovation): consumer credit for environmentally-friendly properties,
– ECO PTZ MPR: consumer credit designed for renovation work eligible for the MaPrimeRenov program (government scheme to support energy-efficient home renovation work) for up to a total of €30,000,
– ECO PTZ: interest-free regulated home improvement loan for up to a total of €50,000

Number of unique visitors to the ‘Advice and Sustainable Solutions’ digital module: this indicator calculates the aggregate annual number of unique visitors who consult the ‘Advice and sustainable solutions’ page on BP and CE mobile applications.

Financing BtoB clients in their transition and decarbonization efforts: this indicator calculates the aggregate annual amount of loans granted to businesses to help finance their transition and decarbonization efforts, expressed in €m. This aggregate total is derived from the sum of BtoB loan amounts (Green loans + Impact loans + Vehicle Leasing + Green Lease with Purchase Option/Long-Term Rental agreements (LOA/LDD Green).

Within the scope of CIB activities, Green revenues are comprised of:

Sustainable Finance (GSH scope)
Renewable & new energies franchises
Activities with clients/assets rated Dark & Medium Green (Green Weighting Factor).

(restated for scope reconciliations).

Reconciliation of 2023 data to pro forma data

Retail banking and Insurance	Q1-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	3,891	(2,496)	1,107	(269)	840
Sectoral reallocation	12	(1)	11	0	11
Pro forma figures	3,903	(2,497)	1,118	(269)	851

Global Financial Services	Q1-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	1,822	(1,303)	590	(146)	432
Sectoral reallocation	0	0	0	0	0
New rules	32	(2)	30	(4)	26
Pro forma figures	1,854	(1,305)	621	(151)	458

Corporate center	Q1-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	102	(788)	(729)	(10)	(739)
Sectoral reallocation	(12)	1	(11)	0	(11)
New rules	(32)	2	(30)	4	(26)
Pro forma figures	57	(785)	(771)	(5)	(776)

Retail banking and Insurance	Q2-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	3,655	(2,459)	952	(224)	729
Sectoral reallocation	(15)	(1)	(15)	(0)	(15)
Pro forma figures	3,640	(2,460)	936	(224)	713

Global Financial Services	Q2-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	1,798	(1,282)	429	(115)	300
Sectoral reallocation	(0)	(0)	(0)	(0)	(0)
New rules	31	(5)	26	(3)	22
Pro forma figures	1,829	(1,287)	455	(118)	322

Corporate center	Q2-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	13	(58)	(44)	(14)	(56)
Sectoral reallocation	15	1	16	0	16
New rules	(31)	5	(26)	3	(22)
Pro forma figures	(3)	(52)	(54)	(10)	(63)

Retail banking and Insurance	Q3-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	3,721	(2,358)	1,072	(268)	799
Sectoral reallocation	(13)	(1)	(14)	0	(14)
Pro forma figures	3,709	(2,359)	1,058	(268)	785

Global Financial Services	Q3-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	1,736	(1,279)	444	(114)	319
Sectoral reallocation	(0)	(0)	(0)	0	(0)
New rules	31	(4)	27	(4)	23
Pro forma figures	1,767	(1,283)	470	(118)	341

Corporate center	Q3-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	(3)	(175)	(176)	(23)	(200)
Sectoral reallocation	13	1	14	0	14
New rules	(31)	4	(27)	4	(23)
Pro forma figures	(21)	(170)	(189)	(19)	(210)

Retail banking and Insurance	Q4-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	3,557	(2,497)	395	(122)	294
Sectoral reallocation	19	(1)	18	(0)	18
Pro forma figures	3,576	(2,499)	413	(122)	312

Global Financial Services	Q4-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	1,874	(1,389)	391	(118)	255
Sectoral reallocation	0	(1)	(0)	(0)	(0)
New rules	33	(4)	29	(3)	26
Pro forma figures	1,908	(1,394)	420	(121)	280

Corporate center	Q4-23
€m	Net banking income	Operating expenses	Income before tax	Income tax	Net income
Reported figures	31	(243)	(249)	81	(168)
Sectoral reallocation	(20)	2	(18)	0	(18)
New rules	(33)	4	(29)	3	(26)
Pro forma figures	(22)	(237)	(296)	84	(211)

Q4-24 & Q4-23 results : reconcialiation of reported data to alternative performance measures

€m		Net banking income	Operating expenses	Cost of risk	Gains or losses on other assets	Income before tax	Net income – Group share
Reported Q4-24 results		6,046	(4,184)	(596)	(35)	1,262	913
Transformation and reorganization costs	Business lines/Corporate center	0	(86)		(1)	(87)	(64)
Disposals	Corporate center				(1)	(1)	(1)
Q4-24 results excluding exceptional items		6,045	(4,098)	(596)	(34)	1,349	977

€m		Net banking income	Operating expenses	Cost of risk	Gains or losses on other assets	Income before tax	Net income – Group share
Pro forma reported Q4-23 results		5,462	(4,129)	(744)	(43)	537	381
Transformation and reorganization costs	Business lines/Corporate center	(5)	(54)	(34)		(93)	(57)
Disposals	Corporate center				(43)	(43)	(43)
Pro forma Q4-23 results excluding exceptional items		5,467	(4,076)	(710)	(0)	672	481

2024 & 2023 results : reconcialiation of reported data to alternative performance measures

€m		Net banking income	Operating expenses	Cost of risk	Gains or losses on other assets	Income before tax	Net income – Group share
Reported 2024 results		23,317	(16,384)	(2,061)	28	4,956	3,520
Transformation and reorganization costs	Business lines/Corporate center	3	(208)		(1)	(206)	(153)
Disposals	Corporate center	0			(3)	(3)	(3)
2024 results excluding exceptional items		23,314	(16,176)	(2,061)	32	5,165	3,675

€m		Net banking income	Operating expenses	Cost of risk	Gains or losses on other assets	Income before tax	Net income – Group share
Pro forma reported 2023 results		22,198	(16,328)	(1,731)	8	4,182	2,804
Transformation and reorganization costs	Business lines/Corporate center	2	(213)	(32)		(242)	(164)
Disposals	Corporate center				(45)	(45)	(44)
Litigations	Business lines/Corporate center	87				87	87
Pro forma 2023 results excluding exceptional items		22,108	(16,115)	(1,699)	53	4,381	2,925

Groupe BPCE : underying cost to income ratio

€m	Net banking income	Operating expenses	Underlying cost income ratio
Q4-24 reported figures	6,046	(4,184)
Impact of exceptional items	0	(86)
Q4-24 underlying figures	6,045	(4,098)	67.8%

€m	Net banking income	Operating expenses	Underlying cost income ratio
Q4-23 Pro forma reported figures	5,462	(4,129)
Impact of exceptional items	(5)	(54)
Q4-23 Pro forma underlying figures	5,467	(4,076)	74.6%

Groupe BPCE : underying cost to income ratio

€m	Net banking income	Operating expenses	Underlying cost income ratio
2024 reported figures	23,317	(16,384)
Impact of exceptional items	3	(208)
2024 underlying figures	23,314	(16,176)	69.4%

€m	Net banking income	Operating expenses	Underlying cost income ratio
2023 Pro forma reported figures	22,198	(16,328)
Impact of exceptional items	89	(213)
2023 Pro forma underlying figures	22,108	(16,115)	72.9%

Groupe BPCE : quarterly income statement per business line

	RETAIL BANKING & INSURANCE		GLOBAL FINANCIAL SERVICES		CORPORATE CENTER		GROUPE BPCE
€m	Q4-24	Q4-23	Q4-24	Q4-23	Q4-24	Q4-23	Q4-24	Q4-23	%
Net banking income	4,064	3,576	2,055	1,908	(73)	(22)	6,046	5,462	11%
Operating expenses	(2,497)	(2,499)	(1,501)	(1,394)	(186)	(237)	(4,184)	(4,129)	1%
Gross operating income	1,567	1,077	553	514	(259)	(259)	1,862	1,332	40%
Cost of risk	(556)	(643)	(86)	(73)	46	(28)	(596)	(744)	(20)%
Income before tax	998	413	479	420	(215)	(296)	1,262	537	x 2
Income tax	(222)	(122)	(124)	(121)	19	84	(326)	(159)	x 2
Non-controlling interests	(5)	21	(18)	(19)	0	1	(23)	3	ns
Net income – Group share	772	312	337	280	(196)	(211)	913	381	x 2

Groupe BPCE : 2024 income statement per business line

	RETAIL BANKING & INSURANCE		GLOBAL FINANCIAL SERVICES		CORPORATE CENTER		GROUPE BPCE
€m	2024	2023	2024	2023	2024	2023	2024	2023	%
Net banking income	15,397	14,828	7,947	7,358	(27)	12	23,317	22,198	5%
Operating expenses	(9,902)	(9,815)	(5,651)	(5,269)	(831)	(1,244)	(16,384)	(16,328)	0%
Gross operating income	5,495	5,013	2,296	2,088	(858)	(1,232)	6,933	5,870	18%
Cost of risk	(1,751)	(1,505)	(268)	(154)	(43)	(72)	(2,061)	(1,731)	19%
Income before tax	3,807	3,526	2,051	1,966	(902)	(1,310)	4,956	4,182	19%
Income tax	(891)	(882)	(534)	(507)	67	49	(1,357)	(1,340)	1%
Non-controlling interests	(14)	18	(66)	(56)	1	1	(79)	(38)	x 2
Net income – Group share	2,902	2,661	1,452	1,402	(834)	(1,260)	3,520	2,804	26%

Groupe BPCE : quarterly series

GROUPE BPCE
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	5,815	5,467	5,455	5,462	5,753	5,626	5,892	6,046
Operating expenses	(4,587)	(3,799)	(3,812)	(4,129)	(4,151)	(4,008)	(4,041)	(4,184)
Gross operating income	1,228	1,667	1,642	1,332	1,602	1,618	1,851	1,862
Cost of risk	(326)	(342)	(319)	(744)	(382)	(560)	(523)	(596)
Income before tax	968	1,337	1,339	537	1,233	1,124	1,336	1,262
Net income – Group share	533	973	917	381	875	806	925	913

Groupe BPCE : Consolidated balance sheet

ASSETS €m	Dec. 31, 2024	Dec. 31, 2023
Cash and amounts due from central banks	133,186	152,669
Financial assets at fair value through profit or loss	230,521	214,582
Hedging derivatives	7,624	8,855
Financial assets at fair value through other comprehensive income	57,166	48,073
Securities at amortized cost	27,021	26,373
Loans and advances to banks and similar at amortized cost	115,862	108,631
Loans and receivables due from customers at amortized cost	851,843	839,457
Revaluation difference on interest rate risk-hedged portfolios	(856)	(2,626)
Financial investments of insurance activities	115,631	103,615
Insurance contracts issued – Assets	1,134	1,124
Reinsurance contracts held – Assets	9,320	9,564
Current tax assets	640	829
Deferred tax assets	4,160	4,575
Accrued income and other assets	16,444	14,611
Non-current assets held for sale	438	–
Investments in accounted for using equity method	2,146	1,616
Investment property	733	717
Property, plant and equipment	6,085	6,023
Intangible assets	1,147	1,110
Goodwill	4,312	4,224
TOTAL ASSETS	1,584,558	1,544,022

LIABILITIES €m	Dec. 31, 2024	Dec. 31, 2023
Amounts due to central banks	1	2
Financial liabilities at fair value through profit or loss	218,963	204,023
Hedging derivatives	14,260	14,973
Debt securities	304,957	292,598
Amounts due to banks and similar	69,953	79,634
Amounts due to customers	723,090	711,658
Revaluation difference on interest rate risk-hedged portfolios, liabilities	14	159
Insurance contracts issued – Liabilities	117,551	106,137
Reinsurance contracts held – Liabilities	119	149
Current tax liabilities	2,206	2,026
Deferred tax liabilities	1,323	1,640
Accrued expenses and other liabilities	20,892	22,492
Liabilities associated with non-current assets held for sale	312	–
Provisions	4,748	4,825
Subordinated debt	18,401	18,801
Shareholders’ equity	87,768	84,905
Equity attributable to equity holders of the parent	87,137	84,351
Non-controlling interests	630	553
TOTAL LIABILITIES	1,584,558	1,544,022

Groupe BPCE : Goodwill

€m	Dec. 31, 2023	Acquisitions	IRFS5 reclassifications	Translation adjustments	Dec. 31, 2024
Retail Banking & Insurance	822	58			879
Asset & Wealth Management	3,257	1	(72)	95	3,280
Corporate & Investment Banking	144			7	151
Total	4,224	58	(72)	102	4,312

Groupe BPCE: Statement of changes in shareholders’ equity

€m	Equity attributable to shareholders’ equity
December 31, 2023	84,407
Restatements¹	(56)
December 31, 2023 restated	84,351
Distributions	(833)
Change in capital (cooperative shares)	90
Impact of acquisitions and disposals on non-controlling interests (minority interests)	(48)
Income	3,520
Changes in gains & losses directly recognized in equity	144
Capital gains and losses reclassified as reserves	(31)
Others	(56)
December 31, 2024	87,137

¹ Opening shareholders’ equity has been adjusted for Funding Valuation Adjustments whose non-material impact on income has not given rise to a change in the latter in the 2024 consolidated financial statements

Retail Banking & Insurance: quarterly income statement

	BANQUE POPULAIRE NETWORK			CAISSE D’EPARGNE NETWORK			FINANCIAL SOLUTIONS & EXPERTISE			INSURANCE			DIGITAL & PAYMENTS				OTHER NETWORK				RETAIL BANKING & INSURANCE
€m	Q4-24	Q4-23	%	Q4-24	Q4-23	%	Q4-24	Q4-23	%	Q4-24	Q4-23	%	Q4-24	Q4-23	%	Q4-24		Q4-23	%	Q4-24		Q4-23	%
Net banking income	1,614	1,382	17%	1,616	1,423	14%	334	335	(0)%	171	146	17%	227	199	14%	101		91	12%	4,064		3,576	14%
Operating expenses	(980)	(975)	1%	(1,084)	(1,081)	0%	(169)	(167)	1%	(36)	(41)	(10)%	(173)	(171)	1%	(53)		(63)	(16)%	(2,497)		(2,499)	(0)%
Gross operating income	634	407	56%	531	343	55%	165	168	(2)%	135	105	28%	54	27	96%	48		28	75%	1,567		1,077	45%
Cost of risk	(266)	(282)	(6)%	(205)	(218)	(6)%	(38)	(54)	(31)%				(33)	(69)	(52)%	(15)		(19)	(23)%	(556)		(643)	(13)%
Income before tax	352	149	x2	328	126	x3	125	112	12%	141	107	32%	20	(89)	ns	33		9	x4	998		413	x2
Income tax	(73)	(45)	62%	(78)	(20)	x4	(33)	(27)	22%	(29)	(25)	16%	0	(2)	ns	(8)		(2)	x4	(222)		(122)	82%
Non-controlling interests	(0)	(6)	(94)%	(1)	(3)	(66)%	0	(0)	ns	0	(1)	ns	(3)	30	ns					(5)		21	ns
Net income – Group share	278	98	x3	248	103	x2	92	85	8%	112	81	39%	16	(61)	ns	25		7	x4	772		312	x2

	BANQUE POPULAIRE NETWORK			CAISSE D’EPARGNE NETWORK			FINANCIAL SOLUTIONS & EXPERTISE			INSURANCE			DIGITAL & PAYMENTS				OTHER NETWORK				RETAIL BANKING & INSURANCE
€m	2024	2023	%	2024	2023	%	2024	2023	%	2024	2023	%	2024	2023	%	2024		2023	%	2024		2023	%
Net banking income	6,098	5,862	4%	6,054	5,858	3%	1,303	1,274	2%	694	633	10%	873	816	7%	375		384	(2)%	15,397		14,828	4,%
Operating expenses	(4,047)	(3,970)	2%	(4,216)	(4,181)	1%	(636)	(630)	1%	(143)	(163)	(12)%	(646)	(652)	(1)%	(213)		(218)	(2)%	(9,902)		(9,815)	1%
Gross operating income	2,051	1,892	8%	1,838	1,677	10%	667	644	3%	550	470	17%	227	164	39%	162		166	(2)%	5,495		5,013	10%
Cost of risk	(814)	(651)	25%	(640)	(553)	16%	(108)	(98)	11%				(126)	(171)	(26)%	(62)		(33)	89%	(1,751)		(1,505)	16%
Income before tax	1,285	1,308	(2)%	1,200	1,125	7%	555	545	2%	566	475	19%	97	(68)	ns	103		140	(26)%	3,807		3,526	8%
Income tax	(307)	(329)	(7)%	(264)	(254)	4%	(146)	(140)	4%	(123)	(99)	24%	(27)	(25)	9%	(24)		(35)	(30)%	(891)		(882)	1%
Non-controlling interests	(9)	(24)	(64)%	(5)	(7)	(24)%	0	(0)	ns	0	(0)	ns	(0)	49	ns					(14)		18	ns
Net income – Group share	970	954	2%	931	864	8%	409	405	1%	443	376	18%	70	(43)	ns	79		106	(25)%	2,902		2,661	9%

Retail Banking & Insurance: 2024 income statement

Retail banking & insurance: quarterly series

RETAIL BANKING & INSURANCE
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	3,903	3,640	3,709	3,576	3,763	3,701	3,869	4,064
Operating expenses	(2,497)	(2,460)	(2,359)	(2,499)	(2,547)	(2,456)	(2,403)	(2,497)
Gross operating income	1,406	1,180	1,350	1,077	1,217	1,245	1,467	1,567
Cost of risk	(308)	(252)	(302)	(643)	(296)	(475)	(423)	(556)
Income before tax	1,118	936	1,058	413	934	831	1,044	998
Net income – Group share	851	713	785	312	709	637	785	772

Retail Banking & Insurance: Banque Populaire and Caisse d’Epargne networks quarterly series

BANQUE POPULAIRE NETWORK
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	1,569	1,442	1,469	1,382	1,489	1,489	1,506	1,614
Operating expenses	(1,018)	(1,015)	(961)	(975)	(1,043)	(1,025)	(999)	(980)
Gross operating income	551	427	508	407	445	464	508	634
Cost of risk	(132)	(110)	(127)	(282)	(125)	(228)	(195)	(266)
Income before tax	434	328	398	149	329	290	315	352
Net income – Group share	332	240	284	98	252	210	230	278

CAISSE D’EPARGNE NETWORK
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	1,537	1,465	1,432	1,423	1,454	1,467	1,517	1,616
Operating expenses	(1,066)	(1,041)	(993)	(1,081)	(1,085)	(1,038)	(1,008)	(1,084)
Gross operating income	470	424	440	343	368	429	509	531
Cost of risk	(136)	(84)	(115)	(218)	(100)	(176)	(159)	(205)
Income before tax	334	340	325	126	270	252	350	328
Net income – Group share	253	256	253	103	208	194	281	248

Retail Banking & Insurance: FSE quarterly series

FINANCIAL SOLUTIONS & EXPERTISE
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	315	306	318	335	327	320	322	334
Operating expenses	(157)	(151)	(154)	(167)	(162)	(154)	(151)	(169)
Gross operating income	158	155	164	168	166	166	171	165
Cost of risk	(6)	(19)	(18)	(54)	(24)	(22)	(24)	(38)
Income before tax	151	136	146	112	141	143	146	125
Net income – Group share	112	102	107	85	104	106	108	92

Retail Banking & Insurance: Insurance quarterly series

INSURANCE
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	180	126	181	146	188	118	217	171
Operating expenses	(43)	(37)	(42)	(41)	(42)	(25)	(40)	(36)
Gross operating income	137	89	139	105	146	93	177	135
Income before tax	139	93	137	107	149	99	177	141
Net income – Group share	109	83	103	81	113	92	126	112

Retail Banking & Insurance: Digital & Payments quarterly series

DIGITAL & PAYMENTS
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	205	203	209	199	215	214	218	227
Operating expenses	(161)	(163)	(157)	(171)	(160)	(159)	(154)	(173)
Gross operating income	44	40	52	27	55	55	64	54
Cost of risk	(32)	(41)	(29)	(69)	(31)	(32)	(30)	(33)
Income before tax	8	(6)	19	(89)	24	22	32	20
Net income – Group share	7	(3)	13	(61)	17	16	21	16

Retail Banking & Insurance: Other network quarterly series

OTHER NETWORK
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	97	97	99	91	91	93	90	101
Operating expenses	(51)	(52)	(52)	(63)	(55)	(55)	(51)	(53)
Gross operating income	46	45	47	28	37	38	39	48
Cost of risk	(2)	2	(14)	(19)	(16)	(17)	(14)	(15)
Income before tax	52	47	33	9	20	25	25	33
Net income – Group share	39	36	25	7	16	19	20	25

Global Financial Services: quarterly income statement per business line

	ASSET AND WEALTH MANAGEMENT		CORPORATE & INVESTMENT BANKING		GLOBAL FINANCIAL SERVICES
€m	Q4-24	Q4-23	Q4-24	Q4-23	Q4-24	Q4-23	%
Net banking income	968	874	1,087	1,034	2,055	1,908	8%
Operating expenses	(763)	(691)	(738)	(703)	(1,501)	(1,394)	8%
Gross operating income	205	183	349	331	553	514	8%
Cost of risk	12	(12)	(98)	(62)	(86)	(73)	18%
Share in net income of associates	0	0	12	4	12	4	x3
Gains or losses on other assets	0	(7)	0	(17)	0	(24)	ns
Income before tax	217	165	262	255	479	420	14%
Net income – Group share	143	105	194	176	337	280	20%

Global Financial Services: 2024 income statement per business line

	ASSET AND WEALTH MANAGEMENT		CORPORATE & INVESTMENT BANKING		GLOBAL FINANCIAL SERVICES
€m	2024	2023	2024	2023	2024	2023	%
Net banking income	3,507	3,192	4,440	4,166	7,947	7,358	8%
Operating expenses	(2,763)	(2,604)	(2,889)	(2,666)	(5,651)	(5,269)	7%
Gross operating income	744	588	1,551	1,500	2,296	2,088	10%
Cost of risk	14	4	(282)	(158)	(268)	(154)	73%
Share in net income of associates	0	0	23	13	23	14	67%
Gains or losses on other assets	0	35	0	(17)	0	18	ns
Income before tax	759	627	1,293	1,338	2,051	1,966	4%
Net income – Group share	500	425	952	977	1,452	1,402	4%

Global Financial Services: quarterly series

GLOBAL FINANCIAL SERVICES
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	1,854	1,829	1,767	1,908	1,933	1,983	1,976	2,055
Operating expenses	(1,305)	(1,287)	(1,283)	(1,394)	(1,368)	(1,366)	(1,415)	(1,501)
Gross operating income	549	542	483	514	564	617	561	553
Cost of risk	27	(91)	(17)	(73)	(58)	(82)	(41)	(86)
Income before tax	621	455	470	420	510	539	525	479
Net income – Group share	458	322	341	280	364	384	366	337

Corporate & Investment Banking: quarterly series

CORPORATE & INVESTMENT BANKING
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	1,074	1,056	1,002	1,034	1,102	1,133	1,118	1,087
Operating expenses	(661)	(651)	(650)	(703)	(706)	(694)	(751)	(738)
Gross operating income	412	405	352	331	396	439	367	349
Cost of risk	21	(90)	(28)	(62)	(54)	(91)	(39)	(98)
Income before tax	437	318	328	255	346	352	333	262
Net income – Group share	321	233	247	176	255	261	242	194

Asset & Wealth Management: quarterly series

ASSET & WEALTH MANAGEMENT
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	781	773	764	874	830	850	858	968
Operating expenses	(644)	(636)	(633)	(691)	(662)	(673)	(664)	(763)
Gross operating income	137	137	131	183	168	178	194	205
Cost of risk	6	(1)	11	(12)	(5)	9	(2)	12
Income before tax	184	136	143	165	163	187	192	217
Net income – Group share	137	89	94	105	109	123	124	143

Corporate center: quarterly series

CORPORATE CENTER
€m	Q1-23	Q2-23	Q3-23	Q4-23	Q1-24	Q2-24	Q3-24	Q4-24
Net banking income	57	(3)	(21)	(22)	57	(58)	46	(73)
Operating expenses	(785)	(52)	(170)	(237)	(236)	(186)	(223)	(186)
Gross operating income	(728)	(55)	(191)	(259)	(179)	(244)	(176)	(259)
Cost of risk	(46)	1	0	(28)	(28)	(2)	(59)	46
Share in income of associates	2	0	1	(9)	3	0	1	5
Gains or losses on other assets	(0)	0	(0)	(0)	(6)	1	3	(8)
Income before tax	(771)	(54)	(189)	(296)	(210)	(245)	(232)	(215)
Net income – Group share	(776)	(63)	(210)	(211)	(198)	(215)	(226)	(196)

DISCLAIMER

This document may contain forward-looking statements and comments relating to the objectives and strategy of Groupe BPCE. By their very nature, these forward-looking statements inherently depend on assumptions, project considerations, objectives and expectations linked to future events, transactions, products and services as well as on suppositions regarding future performance and synergies.

No guarantee can be given that such objectives will be realized; they are subject to inherent risks and uncertainties and are based on assumptions relating to the Group, its subsidiaries and associates and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in the Group’s principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those anticipated or implied by the forward-looking statements. Groupe BPCE shall in no event have any obligation to publish modifications or updates of such objectives.

Information in this presentation relating to parties other than Groupe BPCE or taken from external sources has not been subject to independent verification; the Group makes no statement or commitment with respect to this third-party information and makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions contained in this press release. Neither Groupe BPCE nor its representatives shall be held liable for any errors or omissions or for any harm that may result from the use of this presentation or of its contents or any related material, or of any document or information referred to in this presentation.

The financial information presented in this document relating to the fiscal period ended December 31, 2024 has been drawn up in compliance with IFRS standards, as adopted in the European Union.
This financial information is not the equivalent of summary financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting”.

Preparation of the financial information requires Management to make estimates and assumptions in certain areas regarding uncertain future events.

These estimates are based on the judgment of the individuals preparing this financial information and the information available at the date of the balance sheet. Actual future results may differ from these estimates. For further information, see chapter 5, part 5.1, note 2.3 “Use of estimates and judgments” of the Universal Registration Document 2023 filed with the Autorité des Marchés Financiers, the French financial markets authority.
With respect to the financial information of Groupe BPCE for the quarter ended December 31, 2024, and in view of the context mentioned above, attention should be drawn to the fact that the estimated increase in credit risk and the calculation of expected credit losses (IFRS 9 provisions) are largely based on assumptions that depend on the macroeconomic context.

Significant factors liable to cause actual results to differ from those anticipated in the projections are related to the banking and financial environment in which Groupe BPCE operates, which exposes it to a multitude of risks. These potential risks liable to affect Groupe BPCE’s financial results are detailed in the “Risk factors & risk management” chapter of the latest amendment to the 2023 Universal Registration Document filed with the Autorité des Marchés Financiers.

Investors are advised to consider the uncertainties and risk factors liable to affect the Group’s operations when examining the information contained in the projection elements.

The financial results contained in this presentation have not been reviewed by the statutory auditors. The quarterly financial information of Groupe BPCE for the period ended December 31, 2024, approved by the Management Board at a meeting convened on February 3, 2025, were verified and reviewed by the Supervisory Board at a meeting convened on February 5, 2025.

The sum of the values shown in the tables and analyses may differ slightly from the total reported owing to rounding effects.

About Groupe BPCE
Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the wholesale banking expertise of Natixis Corporate & Investment Banking and with the asset & wealth management services provided by Natixis Investment Managers.
The Group’s financial strength is recognized by four financial rating agencies: Moody’s (A1, stable outlook), Standard & Poor’s (A+, stable outlook), Fitch (A+, stable outlook) and R&I (A+, stable outlook).

groupebpce.com

Attachment

Groupe BPCE_PR_Results_Q4-24 & 2024_FV

The MIL Network –

February 6, 2025

MIL-OSI Security: Man Pleads Guilty in Connection with $17 Million Medicare Hospice Fraud and Home Health Care Fraud Schemes

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

A California man pleaded guilty today to health care fraud, aggravated identity theft, and money laundering in connection with a years-long scheme to defraud Medicare of more than $17 million through sham hospice companies and his home health care company.

According to court documents, Petros Fichidzhyan, 43, of Granada Hills, engaged in a scheme with others to operate a series of sham hospice companies. Fichidzhyan, along with co-schemers, impersonated the identities of foreign nationals to use as the purported owners of the hospices — including using the identities to open bank accounts and sign property leases — and submitted false and fraudulent claims to Medicare for hospice services that were not medically necessary and not provided. In submitting the false claims, Fichidzhyan and his co-schemers also misappropriated the identifying information of doctors, claiming to Medicare that the doctors had determined hospice services were necessary, when in fact the purported recipients of these hospice services were not terminally ill and had never requested nor received care from the sham hospices. As a result of the scheme, Medicare paid the sham hospices nearly $16 million. Fichidzhyan personally received nearly $7 million of the proceeds from the fraud scheme, including more than $5.3 million in transfers to his personal and business bank accounts, which were laundered through a dozen shell and third-party bank accounts. Fichidzhyan additionally admitted to wrongfully obtaining more than $1 million for his home health care agency through the fraudulent use of a doctor’s name and identifying information in certifying Medicare beneficiaries for home health care, which he attempted to cover up by paying the doctor $11,000.

Fichidzhyan pleaded guilty to health care fraud, aggravated identity theft, and money laundering. He is scheduled to be sentenced on April 14 and faces a mandatory penalty of two years in prison on the aggravated identity theft charge, a maximum penalty of 10 years in prison on the health care fraud charge, and a maximum penalty of 20 years in prison on the money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Today’s guilty plea is the most recent conviction in the Justice Department’s ongoing effort to combat hospice fraud in the greater Los Angeles area. Last year, a doctor was convicted at trial for his role in a scheme to bill Medicare for hospice services patients did not need, and two other defendants were sentenced for their roles in a hospice fraud scheme.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office, and Acting Special Agent in Charge Diane N. Vu of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Los Angeles Regional Office made the announcement.

The FBI and HHS-OIG are investigating the case.

Trial Attorneys Eric C. Schmale and Sarah E. Edwards of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Fresno Man with Prior Fraud Conviction Pleads Guilty to Running a $4.2 Million Fraud Scheme Through His Technology Startup

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

FRESNO, Calif. — Royce Newcomb, 62, of Fresno, pleaded guilty today to wire fraud and money laundering charges today for a long-running fraud scheme where he stole $4.2 million from investors, lenders, and the federal government, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, from 2017 through 2022, Newcomb owned Strategic Innovations, which was a technology startup company that purported to make smart home and business products meant to stop package theft, prevent weather damage to packages, and make it easier for emergency responders and delivery services to find homes and businesses. Newcomb developed prototypes of his products and received local and national media attention for them. For example, Time Magazine included his eLiT Address Box & Security System, which used mobile networks to pinpoint home and business locations, on its Best Inventions of 2021 list.

Newcomb made several false representations to his investors to deceive and cheat them out of their money. The false representations included that he had been awarded a grant by the National Science Foundation and that he would use the investors’ money to further develop and bring his products to market. That was not true. Instead, Newcomb used the money to pay for gambling, a Mercedes and Jaguar, and a mansion. He also used the money to pay for refunds to other investors who wanted out, and to pay for new, unrelated projects without the investors’ authorization.

During this period, Newcomb also received a fraudulent COVID-19 loan for more than $70,000 from the Small Business Administration and fraudulent loans for more than $190,000 from private lenders. He lied about Strategic Innovations having hundreds of thousands and even millions in revenue to get these loans.

Newcomb was previously convicted federally in 2011 for running a real estate fraud scheme in Sacramento. He was sentenced to more than five years in prison for that offense, and he was on federal supervised release for that offense when he committed the offenses charged in this case.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Jeffrey Spivak are prosecuting the case.

Newcomb is scheduled to be sentenced on May 5, 2025. Newcomb faces maximum statutory penalties of 20 years in prison and a $250,000 fine for the wire fraud charge, and 10 years in prison and a $250,000 fine for the money laundering charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: New Orleans Man Sentenced for Federal Drug and Weapons Offenses

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

NEW ORLEANS, LOUISIANA –KENDRICK WILLIAMS (“WILLIAMS”), age 20, was sentenced on January 27, 2025 by U.S. District Judge Jay C. Zainey to 90 months in prison followed by five years of supervised release, along with a $300 mandatory special assessment fee, after previously pleading guilty to possession with intent to distribute tapentadol and possession with intent to distribute tapentadol and marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); and possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).

According to court documents, WILLIAMS advertised the sale of tapentadol and marijuana on social media. Law enforcement officers executed two search warrants at WILLIAMS’s residence and recovered over 800 tapentadol pills, one pound of marijuana, two Glock handguns, a Glock Model 23, .40 caliber semi-automatic pistol and a Glock Model 19x, 9mm caliber semi-automatic pistol, with extended magazines, and over $9,000 in cash.

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

The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Former SCDC Captain Pleads Guilty to $279,000 Bribery Conspiracy

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

COLUMBIA, S.C. —Christine Mary Livingston, 47, of Gaston, has pleaded guilty to honest services wire fraud conspiracy for her role in a bribery scheme in a South Carolina prison.

According to evidence presented in court, the investigation revealed that Livingston was a 16-year veteran of the South Carolina Department of Corrections (SCDC) at the time of her resignation in November 2021. By virtue of her position as Captain at the Broad River Correctional Institute (BRCI) from 2016 through 2021, she managed security operations at BRCI and was responsible for enforcing contraband policy and law. SCDC policy and state law prohibited her from accepting bribes or anything of value to influence the exercise of her official responsibilities.

From July 2018 through November 2021, however, Livingston accepted bribes from a least 45 prisoners and three family members of prisoners in exchange for smuggling contraband into BRCI and in exchange for failing to enforce contraband law and policy. She operated at least 14 peer-to-peer payment accounts on platforms such as Cash App that were established in false names but were linked to her legitimate bank accounts. One of her Cash App accounts received at least $279,000 in bribes, of which more than $225,000 was transferred to her personal bank accounts. She then used the proceeds for personal enrichment including on shopping, ATM cash withdraws, and the purchase of cryptocurrency.

At least 173 cell phones were purchased by Livingston on her personal Amazon account during the conspiracy, along with 130 SIM cards and phone accessories, headphones, screen protectors, and phone chargers. At least eight witnesses would have cooperated against Livingston at trial, including family members of prisoners, and records obtained from Facebook and contraband phones recovered by SCDC confirmed the bribery scheme.

“Livingston used her position and rank for personal, criminal gain which endangered other staff members and those housed at Broad River Correctional Institute,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “We will continue to work with SCDC to prosecute those who commit crimes within prison walls.”

“This is one more example of how illegal cellphones ruin lives, including those of correctional officers who get involved in the contraband trade,” SCDC Director Bryan Stirling said. “We appreciate the FBI and U.S. Attorney’s office investigating and prosecuting this case and holding these criminals accountable for their actions.”

Jerell Reaves, a co-defendant and prisoner responsible for more than $42,000 in bribes to Livingston, was recently sentenced to 60 months imprisonment by United States District Judge Sherri A. Lydon, to be followed by three years of supervision by U.S. Probation.

Livingston faces up to 20 years in federal prison, with the Government agreeing to recommend up to eight years as a part of her plea agreement, to be followed by court ordered supervision, $250,000 in monetary penalties, and forfeiture of assets including up to the full value of the bribes. Livingston is scheduled to be sentenced by United States District Judge Sherri A. Lydon on June 30 at 10:00 a.m.

The case was investigated by the FBI Columbia Field Office and the SCDC Office of Inspector General. Assistant U.S. Attorneys Elliott B. Daniels and Michael Shedd are prosecuting the case.

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February 6, 2025
MIL-OSI Security: Columbus Man Admits Attempted Transfer of Obscene Material to Minor in Undercover Investigation

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

BILLINGS — A Columbus man accused of attempting to send obscene material to a minor during an undercover investigation admitted to a charge today, U.S. Attorney Jesse Laslovich said.

The defendant, Jacob Curtis Wyckoff, 25, pleaded guilty to an information charging him with attempted transfer of obscene material to a minor. Wyckoff faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.

U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Wyckoff was released pending further proceedings.

In court documents, the government alleged that in January 2023, law enforcement in the Billings area set up an undercover operation relating to those with a sexual interest in children. The undercover persona was that of a 14-year-old female. The undercover posed on a social media site and on Jan. 26, 2023, Wyckoff reached out on KIK, using the profile name of “Jake Smith.” The undercover made Wyckoff aware in communications that she was “almost 15.” In communications between the two from January 2023 to July 14, 2023, discussions became increasingly sexual in nature. On multiple occasions, Wyckoff expressed a desire to meet the “child” for a sexual encounter. On July 6, 2023, Wyckoff sent the undercover a picture of his allegedly erect penis in his jeans and made sexually suggestive comments.

The U.S. Attorney’s Office is prosecuting the case. The FBI, Yellowstone County Sheriff’s Office, Laurel Police Department, and Montana Division of Criminal Investigations conducted the investigation.

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

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February 6, 2025
MIL-OSI USA: Durbin Leads Judiciary Committee Colleagues In Speaking Out Against Pam Bondi’s Nomination To Be Attorney General

US Senate News:

Source: United States Senator for Illinois Dick Durbin

February 04, 2025

Durbin’s and Judiciary Democrats’ floor speeches come ahead of Bondi’s confirmation vote and after the Trump Administration forced out dozens of DOJ and FBI officials this weekend and is now threatening additional action against thousands of employees across the country who worked on investigations related to January 6 and President Trump

WASHINGTON – In a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, spoke out against Pam Bondi, President Trump’s Attorney General nominee, ahead of her confirmation vote. In his remarks, Durbin cited concerns over Ms. Bondi’s ability to act as an independent Attorney General. These concerns are especially pertinent as the Trump Administration purges dozens of senior career civil servants at the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI)—including longtime nonpartisan leaders of the government’s counterterrorism and counterespionage efforts—further exemplifying the need for an independent DOJ.

Durbin was joined on the Senate floor by Democratic members of the Senate Judiciary Committee to speak out against Ms. Bondi’s nomination before the Senate proceeds to her confirmation vote.

“Shortly, Senate Republicans will confirm the nomination of Pam Bondi to serve as Attorney General and lead the Department of Justice in the new Administration. Yesterday, I came to the Senate floor to discuss the Trump Administration’s decision to purge Justice Department officials and warn that Ms. Bondi’s record suggests that she will aid in this effort to pack the Department of Justice with loyalists seeking retribution against President Trump’s political rivals,” Durbin said. “Since the Watergate era, there has been bipartisan support for the principle that the Department of Justice investigations and prosecutions must be independent from the White House. Over the years, both Republicans and Democrats have asked many individuals seeking the office of Attorney General one basic question—would you be willing to tell the President ‘no?’ Given that Ms. Bondi—when speaking about President Trump’s criminal indictments—threatened ‘the prosecutors will be prosecuted’ and ‘the investigators will be investigated,’ I have serious doubts about her willingness to really say ‘no’ to this President.”

Durbin went on to outline that his concerns are even more pressing because, over the last 16 days, the Trump Administration has purged dozens of senior career law enforcement officials at the Department of Justice and FBI. This purge has been particularly focused on dedicated, nonpartisan prosecutors and investigators working in the National Security Division and the FBI.

“On its first day, the Trump Administration removed or reassigned as many as 20 experienced professionals with invaluable national security expertise without any comparable replacements, including the veteran career deputy assistant attorneys general in the National Security Division… Those who have been reassigned are reportedly being put in roles concerning immigration enforcement, for which they have little expertise… Since then, dozens more senior officials have been removed,” Durbin said. “This shameless partisan retribution is only the beginning. It has been reported that the future FBI Director will be guided by an advisory committee composed of solely partisan political operators, including an associate of Elon Musk… These actions will cripple FBI field offices and U.S. Attorneys’ offices across the country by increasing the caseload for the remaining agents, dramatically slowing down critical investigations and prosecutions.”

Durbin continued, “As America faces a heightened threat landscape, these shocking removals and reassignments of hundreds of employees deprive the Department of Justice and the FBI of experienced leadership and decades of experience fighting violent crime, espionage, and terrorism.”

Durbin concluded, “For years, my Republican colleagues have claimed they ‘Back the Blue,’ and accused Democrats of being ‘soft on crime.’ We’ve heard it over and over and over. But now, as President Trump is gutting our nation’s law enforcement agencies and putting our national security at risk, my Republican colleagues do not complain—they are nowhere to be found. Instead of condemning these actions, they will likely come to the Senate floor tonight and confirm an individual to lead the Department of Justice who is in lockstep with this policy of President Trump—and was chosen for the role specifically because she’s loyal. I urge my colleagues to consider what a danger President Trump and Pam Bondi present to this nation. I will oppose her confirmation and hope my colleagues will do the same.”

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

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

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MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Durbin Votes Against Pam Bondi To Be Attorney General

US Senate News:

Source: United States Senator for Illinois Dick Durbin

February 04, 2025

WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, today voted against President Trump’s pick to be Attorney General of the United States, Pam Bondi. The Senate voted to confirm her nomination by a vote of 54-46.

“Given the massive upheaval that President Trump has caused at the Justice Department in just his first few days in office—including purging dozens of senior career law enforcement officials at DOJ and FBI and the potentially unlawful targeting of thousands more—the next Attorney General will have her work cut out for her. As I said during Ms. Bondi’s hearing, it is absolutely critical that any nominee for Attorney General be committed first and foremost to the Constitution and the American people—not the President and his political agenda. Unfortunately, I am unconvinced that Ms. Bondi shares my belief. She is one of four personal lawyers of President Trump that he has already selected for top positions at the Department of Justice, has echoed President Trump’s calls for exacting revenge on his political opponents, and has undermined our democracy by joining in President Trump’s efforts to overturn the 2020 election.

“In light of the Trump Administration’s actions over the course of the past week, the question of whether Ms. Bondi will be able to tell the President ‘no’ is even more critical. I did not receive a satisfactory answer from Ms. Bondi during her confirmation hearing. Since Watergate, there has been bipartisan support for the idea that the Justice Department must be independent from the White House. President Trump’s conduct during his first term underscored the need for this independence. I do not believe that Ms. Bondi will provide it. Today I voted ‘no’ on her nomination.”

To view Durbin’s questions to Ms. Bondi in her confirmation hearing, click here and here.

Yesterday, Durbin led all Senate Judiciary Committee Democrats in letters to Ms. Bondi; nominee to be the Director of the Federal Bureau of Investigation (FBI), Kash Patel; nominee to be Deputy Attorney General, Todd Blanche; as well as the Acting Attorney General, James McHenry; and Acting FBI Director, Brian Driscoll, about the removal or reassignment across DOJ and FBI of career law enforcement officials. Last week, the Trump Administration reportedly purged dozens of DOJ and FBI officials involved in prosecuting Donald Trump and the January 6 rioters and is now threatening additional action against thousands of employees across the country who worked on investigations related to the attack on the Capitol.

Durbin also outlined concerns regarding her nomination in a speech on the Senate floor yesterday.

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MIL OSI USA News –

February 6, 2025
MIL-OSI Security: Rochester Woman Pleads Guilty to Wire Fraud, Money Laundering in Feeding Our Future Scheme

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

MINNEAPOLIS – A Rochester woman pleaded guilty for her role in the $250 million fraud scheme that exploited a federally funded child nutrition program during the COVID-19 pandemic, announced Acting U.S. Attorney Lisa D. Kirkpatrick.

According to court documents, from approximately December 2020 through January 2022, Ayan Jama, 45, knowingly participated in a scheme to defraud a federal child nutrition program designed to provide free meals to children in need. Rather than feed children, the defendants took advantage of the COVID-19 pandemic—and the resulting program changes—to enrich themselves by fraudulently misappropriating millions of dollars in federal child nutrition program funds.

According to court documents, Jama was one of the principals of Brava Rochester in Rochester, Minnesota. In September 2020, Jama’s Brava Restaurant and Aimee Bock applied for enrollment in the Federal Child Nutrition Program under the sponsorship of Bock’s non-profit, Feeding Our Future. A co-conspirator enrolled Brava Restaurant in the Federal Child Nutrition Program after the co-conspirator first prepared application paperwork at the direction of Salim Said, the co-owner of Safari Restaurant in Minneapolis, which was another business involved in the scheme to defraud the food program.

From late 2020 through 2021, Jama and other conspirators claimed Brava Restaurant was serving approximately 2,000 to 3,000 daily breakfasts and lunches to children, for which they fraudulently claimed and received millions of dollars in federal child nutrition program funds. To accomplish his scheme, Jama and her co-conspirators submitted fake attendance rosters purporting to list the names of children who purportedly received their food at sites. These rosters were fraudulent in that the names on them were fake or did not correctly reflect the number of children that were fed.

According to her plea agreement entered today, Jama claimed Brava Restaurant had served more than 1.7 million meals in Rochester as part of the Federal Child Nutrition Program in a little over one year, a number substantially higher than the actual number of meals served. Based on these fraudulent claims, Feeding Our Future paid out over $5.3 million in federal child nutrition program reimbursements for meals purportedly served to children by the defendant and her co-conspirators. Jama knew her receipt of such funds was fraudulent because she and other conspirators intentionally submitted inflated meal counts. Jama’s Brava Restaurant ultimately received $4.3 million directly from Feeding Our Future and over $900,000 from Safari Restaurant, co-owned by Salim Said.

As part of their scheme, Jama and her conspirators coordinated the establishment of shell companies through which they received and dispersed funds from the federal child nutrition program. Specifically, on January 7, 2021, Salim Said paid to register six different shell companies with the state of Minnesota for Jama and others. For Jama, Salim Said paid to register East Africa LLC. In 2021, Jama deposited at least $407,070 in misappropriated Federal Child Nutrition Program funds into her East Africa LLC bank accounts.

Jama used the federal child nutrition funds to pay for personal expenditures unrelated to feeding children, including $254,041 to purchase a home located in Rochester, Minnesota, $168,000 to purchase a home located in Columbus, Ohio, and $356,795 to purchase property on the Mediterranean Coast in Alanya, Turkey.

Jama pleaded guilty last Friday in U.S. District Court before Chief Judge Patrick J. Schiltz to one count of wire fraud and one count of money laundering. Her sentencing hearing will be scheduled at a later date.

The case is the result of an investigation by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

Assistant U.S. Attorneys Matthew S. Ebert, Joseph H. Thompson, and Harry M. Jacobs are prosecuting the case. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

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February 6, 2025
MIL-OSI Security: Attorney General Loretta E. Lynch Delivers Statement at Briefing to Discuss the U.S. Government’s Ongoing Counterterrorism Efforts

Source: United States Attorneys General 13

As I’ve said previously, we stand in solidarity with the people of France at this difficult time. We are committed to providing any and all assistance to our allies in Europe and around the world as we all face this global threat. Now we’ve made that commitment clear, not just with words, but with our actions. The Department of Justice, the FBI and other agencies are in close contact with French authorities, through our international legal assistance channels, to provide support to the French in their ongoing investigation, to coordinate strategies with them, and to advance our shared efforts as we obtain further information that may be relevant to these attacks. We are operating on an expedited basis, as well, to ensure that the victim assistance professionals at the Department of Justice and the FBI are available to assist the victims and their families. We’ve also expanded the FBI’s legal attaché office in Paris to offer assistance on an as-needed basis, and we have personnel working day and night to respond to any additional requests for assistance. Now earlier today, President Obama spoke by phone with President Hollande to discuss the latest developments in the investigation and to reaffirm our partnership in the fight against terrorism.

Now of course, our highest priority is and will remain the security of our homeland and the safety of all Americans. At the Department of Justice, we are operating around the clock, as we have since 9/11 and even before, to uncover and disrupt any plot that take aim at our people, our infrastructure and our way of life. We take all threats seriously, we’re acting aggressively to defuse threats as they emerge, and we are vigorously investigating and prosecuting those who seek to harm the American people.

In fact, since 2013, we have charged more than 70 individuals for conduct related to foreign-fighter interests and homegrown violent extremism, and we continue to take robust actions to monitor and to thwart potential extremist activity. The Department of Justice and the FBI are working closely with the Department of Homeland Security, with the broader intelligence community and our partners around the world in all of these efforts, and we are bringing every resource to bear in the service of our mission.

As I think it’s important to note, that as we do this work, we are guided, obviously, by our commitment to the protection of the American people, but also by our commitment to the protection of our American values, which include the timeless principles of inclusivity and freedom that have always made this country great. We need to say, we will not let our actions be overtaken by fear, and we will not allow merchants of violence to rob us of our most precious ideals. Our values are not secondary considerations in the fight against terror – they are central to the work that we do, and they are essential to the nation that we protect. They are also the reason that we are a target, and they are what terrorists want most to see us abandon. They want us to live in fear, and we refuse. They want us to change who we are, and what makes us quintessentially American, and that we will never do.

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February 6, 2025
MIL-OSI Security: Director Tracy Toulou of the Office of Tribal Justice Testifies Before the Senate Committee on Indian Affairs Oversight Hearing “Tribal Law and Order Act (TLOA) — Five Years Later: How Have the Justice Systems in Indian Country Improved?”

Source: United States Attorneys General 13

Remarks as prepared for delivery

Chairman Barrasso, Vice-Chairman Tester and Members of the Committee:

I am honored to appear before you to discuss the implementation efforts of the Department of Justice to fulfill our responsibilities as established in the Tribal Law and Order Act of 2010 (TLOA) and, ultimately, to improve public safety in Indian country. In introducing this Act in April 2009, Chairman Dorgan illuminated some of the hard realities faced by tribes in modern times, including: astonishingly high rates of violence, criminal exploitation of complex and sometimes confusing jurisdiction and crippling limitations on the legal authorities of tribal governments to ensure safety on their lands. The introduction of TLOA included a charge to the federal government to provide tribal governments with the tools they need to better protect their communities, to live up to our treaty and trust obligations and to be more accountable for our efforts to enhance public safety in Indian country. Thank you for the opportunity to provide an overview of the department’s efforts over the past five years to fulfill our responsibilities under this Act and honor our broader obligations to Indian country.

In October 2009, the department held a listening session with tribal leaders to help guide and inform the department’s policies, programs and activities affecting Indian country going forward. Our leadership recognized the need to swiftly and meaningfully improve our contributions to public safety in Indian country and as a result of this listening session, launched a department-wide initiative to enhance public safety in Indian country, which is ongoing. With the passage of TLOA in July 2010, the department’s initiative expanded to absorb new responsibilities and assumed a renewed sense of urgency. Our work to enhance public safety has been and continues to be, shaped by our commitment to empower tribal governments; to improve coordination and collaboration at the federal, tribal, state and local levels; and to be appropriately accountable for the work we do.

Empowering Tribal Governments

The department views tribes as partners in ensuring public safety in Indian country and is committed to maximizing tribal control over tribal affairs. It is our belief, informed by experience, that challenges faced by tribes are generally best met by tribal solutions. In support of this commitment and the government-to-government nature of our relationships with tribes, the department has worked to fulfill its responsibilities under TLOA in a way that will ultimately empower tribes to operate with more autonomy.

In order to support law enforcement activity by tribal officials in Indian country, tribes require access to law enforcement databases. Under TLOA, the department must ensure that tribal law enforcement officials have access to national crime information databases. The ability of tribes to fully engage in national criminal justice information sharing via state networks, which are the long-time conduit for such activities, has been dependent upon regulations, statutes and policies of the states that may not consistently enable tribal participation. In order to improve access for tribes, the department has established two new programs and partnered on a third.

First, the Justice Telecommunications System (JUST) program, which was launched in 2010, provided participating tribes with access to the National Crime Information Center (NCIC). This program is ongoing and currently serves 23 tribes. This program, as well as the other two programs to improve data base access, were the result of on-going, substantive dialog with tribal governments and law enforcement.

Second, the department recently launched a more comprehensive access program based on feedback from tribes and lessons learned from the JUST program: the Department of Justice’s Tribal Access Program for National Crime Information (TAP). The TAP program, first announced in August 2015, is designed to provide access to CJIS services, including: Next Generation Identification (NGI); National Data Exchange (N-DEx); Law Enforcement Enterprise Portal (LEEP); National Crime Information Center (NCIC); National Instant Criminal Background Check System (NICS); and Nlets, the International Justice and Public Safety Network. Nlets is an interstate public safety network for the exchange of law enforcement, criminal justice and public safety information owned by the states. Nlets supports inquiry into state databases, such as motor vehicle, driver’s license and criminal history, as well as inquiry into several federal databases, such as Drug Enforcement Administration’s (DEA) Drug Pointer Index, ICE’s Law Enforcement Support Center and FAA’s Aircraft Registration and Canada’s Canadian Police Information Center. With funding from the Office of Justice Programs’ (OJP) Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART), the TAP program has selected ten tribal participants to help provide user feedback on the training, technical assistance, equipment, and maintenance of this program. Early feedback has been very positive and it is our intention to eventually make this program available to any interested tribe. We will continue to work with Congress for additional funding to more broadly deploy the program.

The TAP Program was the result of a 2014 working group, which consisted of representatives from the Departments of Justice and the Interior. From this same close collaboration, the department partnered with Interior’s Bureau of Indian Affairs Office of Justice Services (BIA-OJS) in a third program known as “BIA Purpose Code X,” which gives tribes the ability through BIA-OJS to perform emergency name-based background checks for child placement purposes. This is a crucial capability for tribal social service agencies seeking emergency placement of children in Indian country.

The Department of Justice has increased its efforts to support tribal governments that are exercising expanded sentencing authority rooted in TLOA. While TLOA properly does not require the department to review or certify a tribe’s use of enhanced felony sentencing authority or the status of a tribe’s efforts to amend its codes and court processes to provide defendants with the due process protections described in TLOA, we have taken steps to help ensure that tribes interested in exercising enhanced sentencing authority have knowledge of and access to relevant resources. For example, OJP’s Bureau of Justice Assistance’s Tribal Civil and Criminal Legal Assistance Program has provided training and technical services to support tribal civil and criminal legal procedures, legal infrastructure enhancements, public education and the development and enhancement of tribal justice systems. More specifically, training and technical services have included the following: indigent legal defense services; civil legal assistance; public defender services; and strategies for the development and enhancement of tribal court policies, procedures and codes.

The provision of high-quality training to tribal representatives has been an area of increased activity within the department since the passage of TLOA. The department believes that ensuring access to quality training is a necessary element to bolstering tribal autonomy. In July 2010, the Executive Office of U.S. Attorneys (EOUSA) launched the National Indian Country Training Initiative (NICTI) to ensure that federal prosecutors and agents, as well as state and tribal criminal justice personnel, receive the training and support needed to address the particular challenges relevant to Indian country prosecutions. Importantly, the department covers the costs of travel and lodging for tribal attendees at classes sponsored by the NICTI. This allows many tribal criminal justice officials to receive cutting-edge training from national experts at no cost to the student or tribe. The NICTI has sponsored approximately 75 training courses, and reached over 200 tribal, federal and state agencies.

Additionally, the Federal Bureau of Investigation (FBI) announced a forthcoming training course to be held at the FLETC campus in Artesia, New Mexico. Jointly taught by FBI and BIA “mentors” and FLETC common core instructors, the course will include instruction in forensic evidence collection and preparatory instruction on investigations common to Indian country, such as domestic violence, child abuse, violent crimes, human trafficking and drug trafficking. This course will be held four times each year, with a total of 24 students in each session. This course, the result of collaboration between FBI, BIA and FLETC, was developed out of a recognized need to train federal and tribal law enforcement officers together. Another recent training was held by the DEA. In September 2015, the National Native American Law Enforcement Association held a collaborative training event where the DEA provided on-site training on clandestine lab awareness for first responders, emerging technologies, and money laundering. The training included federal, state, local, and tribal partners with Indian country responsibility.

One of the most meaningful displays of the department’s commitment to a government-to-government relationship with tribes is in our efforts to cross-deputize tribal law enforcement officials. In doing so, we not only expand their authorities, but we send an important message that we are partners and allies with tribes in our collective efforts to enhance public safety in Indian country. The Special Assistant U.S. Attorney (SAUSA) Program was developed prior to the passage of TLOA to train tribal prosecutors in federal criminal law, procedure and investigative techniques to increase prosecutions in federal court, tribal court, or both. The program enables tribal prosecutors to bring cases in federal court and to serve as co-counsel with federal prosecutors on felony investigations and prosecutions of offenses originating in tribal communities. The program has grown considerably since the passage of TLOA. To date, there are 25 SAUSAs representing 23 tribes. In addition to the SAUSA program, the Department of Justice investigative agencies have cross-deputized tribal law enforcement officers through joint task forces. For example, the FBI has deputized 85 tribal law enforcement officers as part of the Safe Trails Task Forces. There are currently 15 active Safe Trails Task Forces located around the country, working to combat violent crime, drugs, gangs and gaming violations.

In 2014, the Bureau of Prisons (BOP) fulfilled a key provision of TLOA by accepting certain tribal offenders sentenced in tribal courts for placement in BOP institutions. The pilot program allowed any federally-recognized tribe to request that the BOP incarcerate a tribal member convicted of a violent crime under the terms of Section 234 of TLOA and authorized the BOP to house up to 100 tribal offenders at a time, nationwide.

A fundamental goal of the BOP is to reduce future criminal activity by encouraging inmates to participate in a range of programs that have been proven to help them adopt a crime-free lifestyle upon their return to the community. Through the pilot program, tribal offenders have access to the BOP’s many self-improvement programs, including work in prison industries and other institution jobs, vocational training, education, treatment for substance use disorders, classes on parenting and anger management, counseling, religious observance opportunities and other programs that teach essential life skills. BOP has also ensured that there are culturally-appropriate offerings for native inmates. In addition to increasing access to critical programs and treatments, the pilot program facilitated tribes’ ability to exercise enhanced sentencing authority under TLOA, which is an important indication of support for tribal sovereignty. The pilot program was, by all accounts, a success and both tribes and the department would be supportive of necessary Congressional action to reauthorize this program.

An important part of our support to tribes is necessarily tied to funds. The department launched the Coordinated Tribal Assistance Solicitation (CTAS) in 2010, as a response to tribes’ request for increased flexibility. Through CTAS, tribes and tribal consortia are able to submit a single application to apply for a broad range of the Department of Justice tribal grant programs. Through CTAS, the department has awarded over 1,400 grants totaling more than $620 million. Over time, we have refined this solicitation to enable tribes to take a truly comprehensive approach to improving public safety in tribal communities. Under TLOA, the department was required to offer specific grants for delinquency prevention and response and to include dedicated funding for regional information sharing. To date, we have awarded more than $44 million in support of tribal youth programs and more than $108 million to support regional information sharing systems. The department continually seeks feedback from tribes on ways to improve CTAS and each year with our solicitation announcement we also communicate steps we have taken during the previous year to improve the process. The most recent solicitation was released on Nov. 19, 2015, with an application deadline of Feb. 23, 2016. It incorporates a number of changes, including the elimination of certain eligibility requirements, broadening allowable activities and extending the award period for certain grants. Each year, the intention is to increase the accessibility and usefulness of CTAS grants.

In parallel to our outward-facing efforts, the department has made a number of internal structural changes to ensure our revamped presence in Indian country is long-lived.

Evolution of Agency Infrastructure

To ensure that the day-to-day operations at the department are supportive of the policy and programmatic changes we have made since the passage of TLOA, we have made a number of internal adjustments across the department, from headquarters to field offices. The intent in making these changes was to absorb the principles that drive the TLOA and our response to that Act, thus integrating them into the way we do business at the department. Indeed, although not a direct response to TLOA, the department issued Attorney General Guidelines Stating Principles for Working with Federally Recognized Tribes (Statement of Principles) in December 2014 to guide and inform all of the department’s interactions with federally-recognized tribes. This Statement of Principles serves as a point of reference for department employees and, importantly, a standard to which tribes can hold the department accountable.

In 1995, then-Attorney General Janet Reno established the Office of Tribal Justice (OTJ). OTJ has operated continuously since then, although it was not made permanent until the passage of TLOA. On Nov. 17, 2010, less than four months after TLOA’s enactment, the department published in the Federal Register a final rule that established OTJ as a permanent, standalone component of the department. My office serves as a principal point of contact in the department for federally-recognized tribes, provides legal, policy and programmatic advice to the Attorney General with respect to the treaty and trust relationship between the United States and Indian tribes, promotes internal uniformity of department policies and litigation positions relating to Indian country and coordinates with other federal agencies and with state and local governments on their initiatives in Indian country.

The U.S. Attorneys’ Offices with Indian country in their districts play a primary role in our interactions with tribes. U.S. Attorneys’ Offices often are the nexus of activity when federal involvement on reservations is necessary, from investigations to prosecutions to providing services to victims. Every U.S Attorney’s Office, whose district includes Indian country or a federally-recognized tribe, has at least one Tribal Liaison and some districts have more than one. Along with the TLOA-driven requirement that each relevant office appoint a Tribal Liaison, the U.S. Attorneys are required to hold annual consultations with tribes in their districts. In order to assist the U.S. Attorney’s Offices and the Attorney General’s Advisory Committee’s Native American Issues Subcommittee, as well as to serve as a liaison to other department components, the Executive Office for U.S. Attorneys formally established the position of Native American Issues Coordinator.

These changes to the structure of the department were driven by the department’s support for and fulfillment of its responsibilities under TLOA. There have been a series of policy shifts that are not a direct response to the Act but are in keeping with the spirit of that legislation. For example, the issuance of the Department of Justice Statement of Principles, discussed earlier, marks an important shift in our approach at all levels of the department to interacting with tribes. Similarly, the Department of Justice Consultation Policy is based on three guiding principles: that the department must engage with tribal nations on a government-to-government basis; that tribal sovereignty and Indian self-determination are now and must always be, the foundations of every policy or program; and that communication and coordination with our tribal partners, among federal agencies and with our state and local counterparts are essential to accountability and to success.

Greater Accountability

Accountability is a critical element in a true partnership and the department has taken a number of steps to increase our accountability to tribes. The TLOA-mandated reports were intended to promote greater transparency of department activities in Indian country and the process of responding has been a useful exercise for our agency to scrutinize trends and patterns of activity. In some cases, the reports have revealed a need to expand our agency response to meet specific needs and organize our resources more effectively, such as those related to long-term detention. In other cases, the reporting process highlighted positive impacts that department activity has had in Indian country over time and a need to perpetuate beneficial initiatives, such as the BOP pilot program report and the Office of Community Oriented Policing Services (COPS) Report. In tracking prosecutions and crime data, the department has benefitted from taking a focused look at our response to trends in Indian country and as a result is in a better position to adjust our resources internally to address emerging trends and issues.

The department has made progress over the past five years in bolstering our government-to-government relationship with tribes and in honoring our treaty and trust obligations. We are all fully cognizant that there is significant work still to be done to live up to our responsibilities in Indian country and we are committed to seeing this work through. We appreciate Congress’ efforts to foster public safety and look forward to working closely with our partners in Indian country to fully honor our responsibilities. I will be happy to answer any questions you may have.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Attorney General Loretta E. Lynch Delivers Remarks at Press Conference Announcing Law Enforcement Action Related to FIFA

Source: United States Attorneys General 13

Remarks as prepared for delivery

Good afternoon, and thank you all for being here. I know for many of you, the horrific events of San Bernardino are at the top of your mind. I do want to take a moment before we begin to address yesterday’s shooting. The FBI has a leadership role in the investigation, working in conjunction with state and local law enforcement, as well as the ATF and U.S. Marshals Service. And as this investigation unfolds, we intend to provide any and all assistance necessary to local authorities and to the people of San Bernardino who have been so profoundly affected by this unspeakable crime.

As I said this morning, I know that I stand with all Americans when I say that my thoughts and prayers – and those of my colleagues at every level of the Department of Justice – are with the families and loved ones of the victims, and with the brave public safety officials who put themselves in harm’s way in order to save others.

I am joined today by U.S. Attorney [Robert] Capers of the Eastern District of New York, Director [James] Comey of the FBI and Chief of Investigation [Richard] Weber of the IRS’s Criminal Investigation Division. Six months ago, the Department of Justice announced a 47-count indictment charging 14 defendants with pervasive and long-running conspiracies in the world of organized soccer. We alleged that the defendants – including high-ranking FIFA officials; leaders of governing bodies under the FIFA umbrella; and sports marketing executives – had corrupted the business of worldwide soccer to serve their interests and enrich themselves. We stated our determination to end these practices; to root out corruption; and to bring wrongdoers to justice. And we pledged to work with our partners around the world to hold additional co-conspirators and corrupt individuals accountable.

Today, we are announcing a superseding indictment, which includes new charges against new defendants, as well as additional arrests and guilty pleas in connection with our ongoing investigation. A federal grand jury in Brooklyn has returned a 92-count superseding indictment, which includes charges against 16 new defendants, all of whom are current or former soccer officials. These defendants include the sitting presidents of two of FIFA’s six continental soccer confederations – CONCACAF, which covers North and Central America and the Caribbean, and CONMEBOL, which covers South America. Both of these defendants, Alfredo Hawit of Honduras and Juan Ángel Napout of Paraguay, are also FIFA vice presidents and members of its executive committee. In addition, the superseding indictment charges high-ranking officials of other soccer governing bodies, including current and former presidents of national soccer federations in Central and South America. Each of the 16 new defendants is charged with racketeering conspiracy and other crimes in connection with their sustained abuse of their positions for financial gain.

Earlier today, Swiss authorities arrested two of the new defendants, Alfredo Hawit and Juan Angel Napout, as they gathered to attend FIFA meetings in Zurich. We are now working to extradite those defendants to the United States, just as we are working to secure the arrest and extradition of additional defendants residing in other countries.

In addition to naming new defendants, the superseding indictment also expands the bribery and corruption charges set forth in the original indictment unsealed last May. In the original indictment, we alleged that between 1991 and the present, two generations of soccer officials conspired to solicit and receive well over $200 million, often through an alliance with sports marketing executives who sought to obtain lucrative contracts and shut out competitors through the systematic payment of bribes and kickbacks. We also alleged bribes and kickbacks in connection with the sponsorship of the Brazilian soccer federation by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election.

The new charges highlight corruption schemes principally involving soccer officials in Central and South America and sports-marketing companies based in South America and the United States. Consistent with the intergenerational nature of the corruption schemes, they involve payments relating to tournaments that have already been played, as well as matches scheduled into the next decade – including multiple cycles of FIFA World Cup qualifiers and international friendly matches involving six Central American member associations; a bribery scheme relating to the sale of broadcasting rights implicating nearly all of the top CONMEBOL officials; and an Argentinian sports marketing company’s scheme to bribe Central American soccer officials. Not content to hijack the world’s most popular sport for decades of ill-gotten gains, these defendants, as alleged, sought to institutionalize their corruption to ensure that it lived on, not for the good of the game but for their own personal aggrandizement and gain.

The roles of several of the defendants in these schemes illustrate the depth as well as the persistence of the alleged corruption. The defendant Héctor Trujillo currently serves as a judge on the Constitutional Court of Guatemala, purportedly dispensing justice by day while allegedly soliciting bribes and selling his influence within FIFA. Another, Alfredo Hawit, ascended to the position of CONCACAF president that was left open when we charged his predecessor with corruption in May – and then, as alleged, assumed the mantle of those same corrupt practices. The defendant Ariel Alvarado is a member of FIFA’s Disciplinary Committee, entrusted with stamping out the corrupt behavior in which he is now alleged to be involved.

The betrayal of trust set forth here is outrageous. The scale of corruption alleged herein is unconscionable. And the message from this announcement should be clear to every culpable individual who remains in the shadows, hoping to evade our investigation: You will not wait us out. You will not escape our focus.

Many have already heeded that warning. Today, I can report that eight additional defendants have agreed to plead guilty for their involvement in the corruption schemes we have outlined. After the initial charges were filed in May, these eight defendants came forward and accepted responsibility for their criminal conduct. Five of them were not named in the original indictment. As I have stated before, anyone who seeks to live in the past and to return soccer to its old ways is on the wrong side of progress, and does a disservice to the integrity of this beautiful sport. The Department of Justice is committed to ending the rampant corruption we have described amidst the leadership of international soccer – not only because of the scale of the schemes alleged earlier and today, or the brazenness and breadth of the operation required to sustain such corruption, but also because of the affront to international principles that this behavior represents.

After all, global sports like soccer exemplify, in FIFA’s own words, “unifying, educational, cultural and humanitarian values.” They are one of the primary ways we teach our children about character, about fair play and about teamwork. International tournaments promote understanding between nations, and embody an acknowledgement of our common humanity – something that is desperately important, particularly in these times of global challenge. That’s why this investigation does more than address corruption in a worldwide sports organization. It also reaffirms the ideals that have always guided our society – and, most importantly, our young people – toward the fair and just future they deserve. This Department of Justice intends to uphold those values – throughout this ongoing investigation, and always.

I want to thank our international partners – particularly the Swiss authorities – for the close cooperation and invaluable assistance they continue to provide. They have been instrumental in bringing these wrongdoers to justice and helping to restore the integrity of a vital athletic tradition. Today’s action also relied on the tireless work of federal investigators and prosecutors in the U.S. Attorney’s Office for the Eastern District of New York, in the FBI’s New York Field Office and in the Los Angeles Field Office of the IRS’s Criminal Investigation Division. I am so grateful to all of the agents, analysts and attorneys who continue to devote their time and their talents to this important investigation.

At this time, I’d like to introduce U.S. Attorney Capers, who has done an outstanding job leading this effort since his appointment in October, and who will provide additional details on today’s announcement.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Attorney General Loretta E. Lynch Delivers Remarks on the San Bernardino Shootings at the FBI Briefing

Source: United States Attorneys General 13

Well, good afternoon, everyone, and thank you for coming over to join the Director’s Briefing today. All of this will be his briefing.

As many of you know, the news from San Bernardino continues to evolve and obviously we now have seen the names and faces of those victims, of the fallen and injured, and, as always, our hearts go out to them and let’s keep them in our prayers, not just those who did lose their lives but also those who were injured in this, including our law enforcement officials.

As we’ve always told you about this matter, it is an evolving investigation. We also told you we’d keep you informed about this investigation. Just recently, there was a press conference in the local area with the Assistant Director in Charge of the Los Angeles Office providing more operational details. The Director’s going to give you a further briefing, as well.

As you saw from that and as we indicated yesterday, the FBI has taken the lead in this investigation. They continue to work with our local partners who are outstanding partners, also along with the ATF and U.S. Marshals, as well, as we continue to investigate this.

There’s been a lot of new information that’s come to light and the Director’s going to give you some more insight into that.

So thank you all for being here today.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Attorney General Loretta E. Lynch Delivers Keynote Address on Counterterrorism and International Cooperation

Source: United States Attorneys General 13

Thank you, Dr. [Robin] Niblett, for that kind introduction; for your leadership here at the Royal Institute of International Affairs; and for your lifetime of dedicated work in the service of international cooperation and global security. I also want to thank Prime Minister [David] Cameron and the members of Her Majesty’s government for their hospitality during my visit to the United Kingdom. And I’d like to thank this group of distinguished colleagues, inspiring leaders and devoted public servants for participating in this important conversation. It’s a privilege to join you here today as we honor the unique bond between our nations; as we reaffirm the cherished values and ideals that we share; and as we rededicate ourselves to building the stronger, safer, and more united world for which we have fought together in the past, and toward which we continue to strive today.

The United Kingdom and the United States have long been close partners and staunch allies and the connection between us – which Winston Churchill referred to as our “special relationship” – is one with deep roots and a rich history. Almost all of America’s founders proudly considered themselves Englishmen and many were hesitant to shed that honorable title, even after the start of the American Revolution. And the revolution itself – though it pitted us against one another in armed conflict – was inspired by the ideals of the British Enlightenment: responsive government, robust rights and liberties, and the fundamental equality of all people.

Those ideals have been a source of mutual understanding and shared strength ever since – and while they have been threatened by injustice within our nations and hostility from beyond our shores, they have continued not only to endure, but to expand. Through the courageous struggles of prominent leaders and humble citizens; of freed slaves and former colonial subjects; of suffragists, ethnic minorities, religious dissenters and gay and lesbian advocates – we have extended the rights of liberty, equality and justice. Through the tremendous courage and sacrifice of our countrymen –in two World Wars, in battlefields of Korea and today in the skies over Syria and Iraq– we have defended our beliefs against tyranny and oppression. And together, we have come to the aid of others inspired by the principles that we share.

Today, the values that have guided and defined us for centuries are facing a persistent threat: the rise of global terrorism and extremism – a scourge that has inflicted its pain on both of our nations in the recent past. Ten years ago, this great city endured devastating attacks on its public transportation system, and you suffered another attack in the Underground only this week. In the United States, as you know, we have also suffered terrorist attacks and we are currently investigating last week’s tragic shootings in California as an act of terror.  And as recent events in Paris, Beirut, and Mali remind us, we are far from alone in being targeted by these agents of violence. These attacks are carried out with a single, repugnant purpose: to harm, frighten and intimidate anyone who believes in open and tolerant societies; in free and democratic governments; and in the right of every human being to live in peace, security and freedom. As two nations who serve as beacons of those ideals to people around the world, we have a special responsibility to take on this terrorist threat, and to prevent it from causing the destruction it is so desperate to inflict.

As Attorney General of the United States, my highest priorities are the security of our country and the safety of the American people. At the Department of Justice, we are working tirelessly to uncover and disrupt plots that take aim not only at the United States, but at nations around the world. We are acting aggressively to defuse threats as they emerge. And we are vigorously investigating and prosecuting individuals who seek to harm innocent people. To stop plots before they can be brought to fruition, we are going after individuals engaged in preparatory activities like fundraising, recruitment, planning and training. Our approach has yielded important results: since 2013, we have charged more than 70 individuals for conduct related to foreign terrorist fighter interests and homegrown violent extremism and we continue to take action designed to monitor and thwart potential extremist activity.

But no nation can fight terrorism alone. As our world continues to grow more interconnected and interdependent, cooperation and joint action are more essential than ever to combating cross-border threats like terrorism, cybercrime, corruption and human trafficking. And while modern technology has helped to widen the circle of opportunity for so many citizens around the globe, it has also provided new channels that criminals can exploit for their own ends. Online, violent ideologies can rapidly proliferate and spread and threats can leap borders and oceans in an instant. No nation can exist in a bubble of isolation; no country can imagine themselves immune from world events; and the security of each state increasingly depends on the security of all states. The words of four centuries past ring ever true today, “no man is an island entire of itself.” In this environment, our strategic understanding and our common humanity demand that we supplement nationwide vigilance with international cooperation.

That is why the United States is working with organizations like INTERPOL and EUROPOL to share information on foreign fighters. It’s why we have provided resources, including FBI agents, to support INTERPOL’s Fusion Cell, which investigates the training, financing, methods and motives of terrorist groups around the world. And it is why we have crafted information-sharing agreements with more than 45 international partners to identify and track suspected terrorists – a partnership that has now provided INTERPOL with approximately 4,000 profiles on foreign terrorist fighters. From efforts to degrade terrorist capabilities, to building cooperative networks that help to preserve and share information and evidence after an attack, we are demonstrating our deep commitment to collaboration worldwide.

Let me give one example of how critical it is that we work together. Terrorists, like other criminals, count on the difficulties that law enforcement agencies have in sharing information across borders – difficulties that are magnified now that electronic information may be stored in many different countries and may quickly disappear. But starting some years ago, criminal justice experts from the U.S., the UK, France and the other G7 countries created the 24/7 cyber network – a rapid reaction system that now links approximately 70 countries. Thanks to that system, after the recent horrific attacks in Paris, French investigators were able to work immediately with the U.S. Department of Justice and with U.S. Internet Service Providers, to preserve data from social media accounts and webpages identified as connected to the attacks, and to seek emergency disclosures to protect lives. It is this kind of innovative thinking about international information sharing that we need to increase.

Of course, it is also important to emphasize that our efforts to fight terrorism must always be compatible with safeguarding privacy and civil liberties – exactly as the 24/7 cyber system is designed to be. Often, in conversations like this one, there is an implicit assumption that our safety must be balanced against our rights and our values; that there is a necessary trade-off between the hopeful optimism of our ideals and the cold reality of our national security. But the view that we must abdicate our values to maintain our security presents a false choice. Rather, our security exists to protect our values, because they are the wellspring of all that we are. Progress within our nations has always been driven by our desire to live up to our ideals – of inclusiveness and opportunity, of equal rights and equal justice – and if we curb those rights in a misguided bid for short-term security, we betray not only our ancestors; not only ourselves; and not only our children – but all those for whom the United States and the United Kingdom represent the possibility of a better, freer future.

In this regard, I am proud to say that the Obama Administration, with the support of Congress, has made the protection of civil liberties and privacy a priority in the fight against terrorism. The record is a remarkable one: President Obama has created unprecedented transparency regarding our guidelines for collection and use of signals intelligence, including signals intelligence collected in bulk. The President nominated and the senate has confirmed, an independent Privacy and Civil Liberties Oversight Board, as envisioned by Congress. And just last week, independent public advocates were appointed to advise the Foreign Intelligence Surveillance Court, as called for by the USA Freedom Act.

Moreover, in all of these efforts, as President Obama has made clear, our goal is to extend privacy protections not only to U.S. citizens, but to foreign nationals as well. That is why, after years of negotiation, I am very happy to say that we were able to initial in September the U.S./EU “Umbrella” Data Privacy and Protection Agreement regarding law enforcement information. And it is why – in a truly unprecedented step – the Administration has supported legislation to extend judicial redress rights to foreign nationals for privacy breaches regarding law enforcement information – legislation that, thanks to strong Congressional support, already has passed our House of Representatives, and is now pending in the Senate.

These actions are not only unprecedented, but reflective of the United States’ deep commitment to the principles they protect, as well as the importance of our relationship with our European partners in this struggle. That is why it is particularly disappointing that the European Court of Justice – in a case based on inaccurate and outdated media reports – recently struck down the Safe Harbor Agreement in the Schrems decision. And it is highly concerning to us that data privacy legislation advancing in the European Parliament might further restrict transatlantic information sharing – a step that not only ignores the critical need for that information sharing to fight terrorism and transnational crime, but also overlooks the enormous steps forward that the Obama Administration and Congress have taken to protect privacy. It is important that all of us – on both sides of the Atlantic – work to set the record straight regarding our commitment to protect not only the safety of our citizens, but also their civil liberties and privacy.

But one thing I am confident of in our work on these issues and in the larger fight against terrorism – we will not lose ourselves to fear. We will respond to this and other threats the way we know best – by reaffirming the very ideals that distinguish us from those who wish us harm: freedom of speech; religious tolerance; the open exchange of ideas; and government that represents the will of its people. These are the principles of Runnymede and Philadelphia, of the Glorious Revolution and the American Revolution – the principles that we have risen to defend time and again and emerged victorious. For centuries, these ideals have inspired countless men and women around the world to seek the better life that is the promise of humanity and to demand that the elemental dignity of all mankind be recognized and respected. And we must keep their promise alive.

There is no doubt that we come together at a time of uncertainty, facing dangerous threats and determined adversaries. But in this moment of global challenge, we remain dedicated to the task that remains before us and to the work that so many have given their last full measure of devotion to fulfill. Our nations may have been bloodied, but we will remain unbowed – in defense of our citizens, in solidarity with our allies and in allegiance to the values that make us who we are.

The road ahead will not always be easy. We will encounter more times of uncertainty and setbacks. But as we move forward in the work that will secure our homelands and prove our principles once more, we are fortified with the strength of our time-tested traditions, by the partnership of our longstanding allies and by the legacies of the brave men and women who fought to make our nations everything they are today. I am confident about the road ahead. I know that our promise will endure. And if we can lean on our faith in our enduring values – and hold fast to our unshakeable belief in the cause of justice and the rule of law – then I have no doubt that out of a long and difficult night of challenge, a brighter day will come.

Thank you.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Assistant Attorney General John P. Carlin Delivers Remarks at Practising Law Institute’s Coping with U.S. Export Controls and Sanctions 2015 Conference
Source: United States Attorneys General 13

Remarks as prepared for delivery

Thank you for that introduction, and for the opportunity to be a part of this important discussion.

As you all know, foreign governments and other non-state adversaries of the United States are engaged in an aggressive campaign to evade U.S. sanctions regimes and acquire sensitive U.S. technology. In so doing, they threaten our economy, our prosperity and, most importantly, our national security. Disrupting these national security threats is among the highest priorities of the Department of Justice, and the National Security Division.

But the responsibility of protecting our nation from these threats is a shared one. Your clients – the companies you represent – and thus, you, have a critical role to play.

Because our companies have our nation’s crown jewels in their possession. They house information targeted by thieves ranging from foreign powers bent on economic and military superiority, to individual criminals who know the market demand for this information, to terrorists who wish to create weapons of mass destruction.

Of course, companies have a responsibility to comply with the export control and sanctions regime. We must also recognize that our companies are not immune from becoming unwitting victims of thieves and spies. We live in an age where the threats we face are not limited to unlawful shipments and deliveries of goods. Threats are also posed by insiders and through cyberspace. Therefore, to protect what we value, our national assets, companies must learn how to comply with the law and how to protect themselves.

That is why it is good to see such a strong turnout. Lawyers are on the front line helping clients adapt to an ever evolving export control regime. Lawyers shape strategy – hardening collective defenses and counseling companies on best practices.

For example, sitting here today, you know to help your clients comply with export controls and sanctions. Regimes designed to keep export controlled data and trade secrets out of the hands of rogue nations or terrorists.

But have you had the chance to counsel those same clients when a cyber-hacker exfiltrated that information? If you have not, unfortunately, it may only be a matter of time. Cases involving the theft of export-controlled information via hacking are no longer uncommon.

Recently, we’ve brought cases where hackers targeted cleared U.S. defense contractors and stole massive amounts of sensitive data related to military technology, including export-controlled software. These cases are not the first of their kind, and they will almost certainly not be the last.

You have the power to help your clients protect themselves. In a modern, interconnected world, there is quickly emerging a blending of practice areas. Trade controls blends with data privacy, and export controls and sanctions trigger questions not only of compliance but of cybersecurity.

It is a fascinating time to be a practicing lawyer in this area, but one that brings with it grave responsibility.

Today, we’ll talk about a broad range of issues that go into being a modern export control practitioner.

National Security Division

But first, I can explain a bit about the National Security Division of the Department of Justice.

The National Security Division was created in the wake of the September 11th terrorist attacks, in part in response to a specific recommendation from the WMD Commission.

The Commission identified intelligence failures that contributed to the attacks. It highlighted the danger of the so-called wall between foreign intelligence and law enforcement. We needed to be able to connect the dots. We needed to change.

So in 2006, Congress created the National Security Division, creating the first new litigating division in the Department in almost half a century. The National Security Division brings all of the department’s resources to bear. We bring down the wall, uniting prosecutors and law enforcement officials with intelligence attorneys and the Intelligence Community.

We are responsible for executing the highest priority of the Department of Justice – to protect this nation from the full range of national security threats we face. We are proud to have this essential mission.

At the top of our priority list is protecting our nation from terrorist threats. In recent days, you’ve heard everyone from the president to the attorney general and the director of the FBI speaking at length about the steps we are taking to combat that threat each and every day.

Just yesterday, we arrested Jalil Ibn Ameer Aziz, 19, a U.S. citizen and resident of Harrisburg, Pennsylvania, on charges of conspiring to provide, and attempting to provide, material support to the Islamic State of Iraq and the Levant (ISIL). Aziz is alleged to have served as an intermediary between ISIL supporters. Passing location information, including maps and a phone number, to assist persons seeking to travel and travel to and wage jihad with ISIL.

Although it may not seem so at first, fighting terrorism and preventing the illegal export of U.S. technology are interrelated goals. Take the case of Feras Diri. Diri is indicted in the very same district as Aziz. We allege he was involved in a scheme to illegally export U.S. goods to Syria in violation of U.S. sanctions. Some of these good were dual-use items. It doesn’t take much to imagine the consequences of those items falling into the wrong hands once it reaches Syria.

One of the most significant national security threats we face, is the protection of our nation’s assets – including export controlled information, as well as other sensitive information that may be targeted by nation states and terrorists. In so doing, we take an intelligence-driven, threat-based approach.

We have an entire section devoted to this work – the Counterintelligence and Export Control Section, or simply CES. We changed the name as part of a restructure to reflect the significance of export control and sanctions enforcement. This year, CES also finalized a new Strategic Plan, setting forth an aggressive, comprehensive approach. We know from experience that those seeking to do us harm will look for any available vulnerability to exploit. They use all tools against us; it is our responsibility to do the same. Our strategy is driven by the intelligence picture we see, which helps us prioritize and focus on the areas of most significant threat.

Our Priorities and Our Regime

Two of our highest priority areas involve China and WMDs. Both are subject to export controls and regulations.

Our economy profits from exports, and we support the flow of goods across borders. But we must balance economic gain with the real threat to national security posed by certain technologies falling into the wrong hands.

That is why our export control regime is so important. It is the best way to keep sensitive military and dual-use technologies, or even information that could be used in weapons of mass destruction, from ending up in the hands of terrorists and other adversaries. They protect our innovation from being turned against us.

With an ever-growing and evolving set of threats targeting our sensitive technologies and information, we must be vigilant. We must look at how transactions could make us more vulnerable, and do everything in our power to mitigate those vulnerabilities.

Take China – despite a long-standing U.S. arms embargo, China continues to surge efforts to acquire advanced U.S. military technology. China seeks U.S. persons with expertise to illegally provide services and know-how related to sensitive, export-controlled U.S. technology for military gain. As an example, they targeted U.S. experts on jet engines to assist in developing Chinese-made engines. If successful, our military edge over China is reduced; our country is put at greater risk. Knowing what China seeks and why is essential to any sound export compliance and training program.

Iranian Sanctions

Likewise, a high priority remains Iran.

Earlier this year, the United States, Iran, the E.U. and five other nations reached a Joint Comprehensive Plan of Action (JCPOA).

The sanctions relief specified in the JCPOA does not go into effect until Implementation Day – which does not occur until after Iran has completed all necessary nuclear steps, as verified by the International Atomic Energy Agency.

Even after Implementation Day, sanctions relief will not affect most laws and regulations enforced by the Department of Justice.

With few exceptions, U.S. or foreign persons involved in the export or re-export of U.S. goods or services to Iran remain subject to prosecution under the Iranian Transactions and Sanctions Regulations, as do U.S. persons involved in Iranian transactions.

The only sanctions relief relates to:
- the export, re-export, sale, lease or transfer to Iran of commercial passenger aircraft, parts and services for civil end-uses;
- the import of Iranian-origin carpets and foodstuffs; and
- certain transactions involving Iran by foreign entities owned or controlled by a U.S. person.
Looking beyond the sanctions to other U.S. export regulations, the JCPOA will have no effect on the International Traffic in Arms Regulations (ITAR) and Export Administration Regulations (EAR). Likewise, our commitment to prosecuting cases where defense articles on the U.S. Munitions List (USML), defense services and items subject to the EAR are exported to Iran remains as strong as ever.

So as a practical matter, what does this mean? Bottom line, companies and individuals, whether U.S. or foreign, need to remain vigilant when it comes to any possible commercial or financial interactions with Iran. We will continue to investigate and, where appropriate, prosecute U.S. export control and sanctions cases involving Iran under our domestic authorities. Because anything else is simply unacceptable.

The export control and sanctions regime in place exists to protect this nation from the proliferation threat. From sensitive information and technology that could pose a grave danger in the wrong hands making its way to terrorists. From our innovation being used to develop weapons of mass destruction or ballistic missiles.

Iran remains a designated state sponsor of terrorism, and we will not take our eye off of countering Iran’s efforts to support international terrorism and other destabilizing activities in the region.

Corporate Misconduct

U.S. companies – particularly in large international corporate structures, must understand this reality.

The risks – not only compliance-based risks, but security risks – must be front of mind, and we hope that as the lawyers who counsel, advise and represent these companies, you will talk frankly about them.

At the Department of Justice, we continue to prioritize corporate misconduct related to export control and sanctions violations. The deputy attorney general issued guidance and directed changes to the U.S. Attorneys’ Manual to reflect the department’s sharpened focus in this area including on individual corporate defendants.

To provide you clarity as you advise clients, we will provide guidance to make clear our current practices on voluntary self-disclosure of export and sanctions criminal violations. We want to be transparent about our process and the factors we consider when assessing voluntary self-disclosures. That way, the benefits for your clients are clear, and you can provide clear counsel.

Because when a company voluntarily self-discloses export control and sanctions misconduct, fully cooperates and appropriately remediates, we will grant the company a significantly reduced penalty. That can include a non-prosecution agreement (NPA), a reduced period of supervised compliance, a reduced fine and forfeiture and no requirement for a monitor.

If one or more aggravating factors are present to a substantial degree – like numerous willful shipments of defense articles to a foreign terrorist organization – a more stringent resolution might be necessary. In all cases, however, the company that voluntary discloses will find itself in a better position one that does not.

We are also discussing these issues with our regulatory partners to help you understand how the Department of Justice fits in to the broader regime. The Department of Justice guidance we ultimately issue on VSDs will not supplant or supersede obligations to regulators. Our ultimate goal is to be more transparent, so that companies will have more certainty about the benefits of self-disclosure are when dealing with prosecutors. In the end, we think this is good for our national security mission and good for business.

Voluntary self-disclosure is responsible. But even if you choose not to pursue the route of voluntary self-disclosure and cooperation, your corporate clients need to remain vigilant or they may suffer serious consequences.

Time and again, we have shown that willfully facilitating illegal transactions will not go unpunished.

Earlier this year, Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd., one of the largest oil and gas services companies in the world, pleaded guilty and agreed to pay a penalty of over $232 million for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.

What it ultimately came down to, was that one subsidiary failed to adequately train its employees to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.

We will not hesitate to prosecute individuals and entities that facilitate illegal transactions in violation of U.S. sanctions.

Vigilance is essential. Policies and procedures are simply not enough. They must be fully executed and reinforced. Simply “checking the box” by implementing an export control and sanctions compliance program without the proper support or follow through will not insulate a company from prosecution.

Another point to keep in mind is the need to know your markets and your people. When you’re part of a large corporate family with many segments located overseas, some subject to very different export control laws in foreign countries, you have be careful to ensure that conduct illegal in the U.S. does not become practice here. If you have doubts, check with your regulator. Something a foreign national employee does overseas may have been entirely legal there, but once transferred here, is a crime.

When working with your clients on these and other difficult issues, implore them to be vigilant. These are complicated areas, and it takes sound advice and a high level of scrutiny to ensure compliance.

Insider Threats

Unfortunately, compliance is only one piece of the puzzle. Because, in addition to the compliance risks that are common in global operations, your corporate clients – and, in fact, even potentially their outside counsel –also are vulnerable to the threats from insiders and hackers.

Insider threats – threats from trusted employees and contractors – is now a significant problem. And they are threat to national security when they steal sensitive export-controlled technology.

For instance, Mozaffar Khazaee stole materials from each of three defense contractors who employed him, including materials relating to the F35 Joint Strike Fighter. He attempted to illegally export a shipping container’s worth of those proprietary, export-controlled materials to Iran in order to gain employment there. After pleading guilty, he received 97 months in prison.

Although that sentence sends a strong message to any insider who would consider violating the trust of his or her employer, deterrence alone is not enough.

So what can you do to address this problem? Report incidents of suspected insider theft as soon as they are detected. Create detailed internal training and compliance programs designed to neutralize threats before they even occur, and provide evidence of willful or knowing conduct in the event an insider is not deterred.

Cyber-Enabled Export Violations

That helps with threats from within our perimeters. But unfortunately, we also face them from outside our borders. That is why another of our export control enforcement priorities is to combat cyber exfiltration of sensitive U.S. technologies, including ITAR-controlled technical data.

In the digital age, foreign nations and their agents can now steal information, including export-controlled technical data and technology, without setting foot on American soil. Left unchecked, cyber espionage can erode our strategic advantages across commercial and military spectrums.

When possible, we will use investigations, arrests and prosecutions, to disrupt efforts to steal from you and your clients. We will also look to use all other legally available tools to deter, like sanctions, designations, diplomacy and other tactics.

But your partnership is critical. You can harden your defenses, create resilient systems, evaluate your cyber hygiene and cooperate with law enforcement when your defenses simply aren’t enough.

That is why we at the National Security Division and others throughout the U.S. government, including the FBI, have made cooperation with the private sector a key component of our export control strategy.

Outreach

We work with U.S. companies, across all industry sectors, to ensure that our national security interests are protected. We have spent time and energy in face-to-face sit downs so that we may better understand the concerns and challenges faced by U.S. companies, share guidance and information, and be there to help with protection, detection, attribution and response. We can warn our companies that manufacture or sell targeted U.S. parts and technology when certain bad actors are seeking the particular parts and technology they make.

Corporate outreach helps sensitize industry to the threat and thereby maximizes the prevention of export control and sanctions violations. We believe that through such efforts we can help stem the flow of those sensitive goods out of the U.S. to malicious end-users that would use them to threaten our national security interests and the safety of our warfighters.

It’s likely that many of you here today have clients that we’ve already met with recently to discuss these types of issues. If you do not, we would certainly welcome the opportunity to do so in the future.

Conclusion

In conclusion, we recognize that our export control laws and sanctions regimes are complex and have a significant impact on the U.S. economy. But they are there to protect against the many threats we face.

And you play a critical role in that effort. You and your clients can successfully negotiate the current export control and sanctions regimes and help keep America safe.

Scrutinize closely each and every transaction undertaken with a foreign counterparty, whether a good or a financial transaction.

Make sure that you understand the relevant compliance and sanctions regimes and how they apply.

Make a voluntary self-disclosure to the National Security Division when you discover a willful violation of U.S. export control laws.

Develop robust training and compliance programs.

Focus not only on internal compliance, but on the threats posed by insiders and through cyberspace.

Harden your cyber defenses.

Develop a relationship with law enforcement, so that we may share valuable information with you to help you protect yourself, and be there to help you respond when your defense may simply not be enough.

Profits may be the lifeblood of our corporations, but cutting corners here in the interest of the bottom line, is potentially catastrophic. You and your clients risk enforcement actions, financial penalties and prison time. But perhaps more significantly, doing so can provide a dangerous capability to an adversary who wishes to bring about damage, destruction or death to many. So understanding and addressing how to comply with these regimes and neutralize these threats is not only the responsible thing to do, but the only thing to do.

The National Security Division will continue to approach export controls and sanctions with a broad and varied toolkit. We will continue to vigorously pursue and prosecute those who violate our nation’s export control laws, but that is not how we define success. Success is working with you to increase education and compliance and to prevent sensitive controlled technologies from falling into the wrong hands. We will combat threats posed by insiders and through cyberspace. And we will coordinate with our colleagues throughout the federal government to use an all tools approach – prosecution, listing, sanctions and other means of disruption – to combat national security threats.

With the careful calibration of these tools and with an eye toward mitigating vulnerabilities and defending against threats, we can protect the national security while simultaneously fostering economic growth and job creation.

Thank you for inviting me here this morning, and for your interest in these issues.

MIL Security OSI –
February 6, 2025
MIL-OSI Security: Assistant Attorney General Leslie R. Caldwell Delivers Remarks at the 12th Annual State of the Net Conference

Source: United States Attorneys General 13

Remarks as prepared for delivery

Good morning. The Attorney General apologizes for not being able to be here today. She was at the World Economic Forum in Switzerland – addressing cybercrime issues – and, unfortunately, unable to get back to D.C. in time for this because of the snowstorm.

Thank you, Tim [Lordan], for that warm welcome, and for your leadership of the Internet Education Foundation (IEF). I also want to thank the IEF for the invaluable services you have provided since your organization was founded nearly two decades ago – and that you continue to provide today. Through this conference series, you bring together industry leaders, dedicated experts and devoted public servants to explore how we can harness new technologies to build more empowered communities and a stronger nation.

As the Assistant Attorney General of the Criminal Division, my foremost task in the cyber area is the vigorous, fair and effective enforcement of our cyber laws. The Justice Department does that by finding ways to protect our networks against evolving threats, by thwarting bad actors online, and by ensuring that both our security and our liberties remain as strong in the digital age as they have been throughout our history.

Essentially, we are focused on a question that President Obama posed in his State of the Union address a few weeks ago: How do we make technology work for us, and not against us?

In our age of rapid change and constant disruption, that question is relevant to almost every aspect of our lives, including law enforcement and national security.

There is no doubt that technology has both expanded and complicated our capacity to detect, investigate and prosecute crimes. Today, by using new technologies, we can analyze some types of evidence with unprecedented speed and accuracy, and coordinate with partners around the world in real time.

But as law enforcers have become better equipped, so have the law breakers we’re working to disrupt. Digital technology has transformed how police and prosecutors do our jobs, but it has also transformed how wrongdoers commit their crimes. Our bank accounts and personal information now exist online, tempting thieves and fraudsters.

The greater anonymity of cyberspace gives cover to drug dealers and arms traffickers. Dark websites are used to circulate illicit content, like images of child sexual exploitation and stolen credit cards.

Communication is frequently by instant message and email, so there are no actual paper trails, but rather virtual ones in data stored on digital devices, hard drives and in the cloud. And it isn’t just criminals who exploit the Internet for nefarious purposes.

The web also hosts groups and individuals who seek to harm our core security interests – from state-sponsored hackers conducting economic espionage; to rogue militants and official cyber warfare units targeting our infrastructure; to terrorist groups plotting attacks, radicalizing recruits and spreading hateful ideologies.

These emerging threats require nimble, innovative and adaptive responses, and at the Department of Justice, we are committed to doing our part to ensure that law enforcement stays a step ahead of bad actors.

The FBI continues to investigate cyber intrusions and national security threats while monitoring individuals, organized groups and state actors who might attempt to steal sensitive data or inflict harm. We recently created a Cybersecurity Unit within our Criminal Division, staffed with experienced prosecutors fluent in the law, policy and practice of cybercrime prevention.

And the Bureau of Alcohol, Tobacco, Firearms and Explosives has established an Internet Investigations Center (known as IIC) where federal agents, legal counsel and investigators track and counter illegal online firearms trafficking. The IIC – which was highlighted in the president’s recent recommendations to curb gun violence – has already identified a number of significant traffickers operating over the Internet, and their work has led to prosecutions against individuals and groups using the “dark net” to traffic guns to criminals or attempting to buy firearms illegally online.

Of course, the Department of Justice’s work to combat cybercrime is enhanced through our collaboration with law enforcement partners in other agencies, such as the U.S. Secret Service and U.S. Postal Inspection Service. And we are working to enhance cybersecurity and information sharing through our work with the Department of Homeland Security.

These are important steps to protect our online information and to combat crime here at home – but with an entity as vast and complex as the Internet, we must also reach beyond our own borders to partner with other countries. And that’s exactly what we’ve done.

In the last fiscal year, the FBI’s Cyber Division embedded three permanent Cyber Assistant Legal Attachés in the United Kingdom, Canada and Australia to help facilitate information-sharing, improve cooperation on investigations and build even stronger relationships with our allies.

We recently placed a Criminal Division prosecutor with Eurojust in The Hague and one in Southeast Asia. These positions will help to facilitate information-sharing, improve cooperation on investigations and build even stronger relationships with our law enforcement partners in other countries.

We’ve also created a cyber unit in our Office of International Affairs (OIA) dedicated to responding to and executing requests for electronic evidence from foreign authorities – requests that have increased by 1,000 percent over the last decade.

To help manage that significant growth, we have been actively hiring additional attorneys and professional staff for OIA’s Mutual Legal Assistance Treaty Modernization Project, and we hope to continue expanding our ability to help our overseas counterparts. And we are providing critical, real-time assistance to foreign counterparts through the 24/7 Points of Contact Network established by the Group of Seven Nations and by the Budapest Cybercrime Convention – a convention that, I am pleased to note, continues to be joined by countries around the world committed to fighting cybercrime.

Partnerships like these don’t just cultivate closer connections with our friends and allies – they also get results. In 2012, we participated in a multinational sweep of child-pornography websites, ultimately dismantling more than 200 websites that sexually exploited children.

In November 2014, we joined more than 15 countries under the auspices of the European Cybercrime Centre – or EC3 – to launch Operation Onymous, which shuttered a number of so-called “dark market websites” peddling drugs, weapons, stolen credit card data, fake passports and computer-hacking tools.

And this past July, our joint effort with EC3 shut down the Darkode hacking forum – an underground site where hackers convened to buy, sell and trade malicious software, botnets, intrusion tools and stolen personal information. That operation involved a coalition of 20 nations, led by the U.S. Department of Justice and EC3, and allowed us to charge, arrest or search 70 Darkode members and associates around the world.

The Justice Department will continue to work with foreign law enforcement agencies to prevent and prosecute groups and individuals that illegally use the Internet for crime and exploitation. Of course, as we seek to ensure the safety and integrity of our devices, databases and networks, it is crucial that we work closely not only with other law enforcement officers, but also with the people who create and design these products themselves – the executives, entrepreneurs and engineers who make America’s tech sector the envy of the world.

Our collaboration has been instrumental in a range of important victories, including the takedown of the GameOver Zeus Botnet, an operation in which technology and data-security companies played an invaluable role. We are committed to building on those successes by maintaining strong partnerships with the private sector.

That’s why the department has placed a high priority on entities like the FBI’s National Cyber Investigative Joint Task Force, which enables collaboration across government to respond to computer intrusions and attacks, and the National Cyber-Forensics & Training Alliance, which brings together law enforcement, private partners and experts in academia to address the cyber threats we face together.

And it’s why the Attorney General and I have been meeting regularly with industry leaders to foster cooperation and discuss urgent issues – including last week at the World Economic Forum in Switzerland, where the Attorney General joined with industry leaders to endorse five recommendations for enhancing public/private partnerships to fight cybercrime. We will continue to reach out to representatives of the tech industry, and our door is always open to new ideas for combatting cybercrime and online extremism.

One area where cooperation between the government and the private sector is especially important is in addressing the growing problem of the government’s inability to obtain critical information in electronic form even when we have court authorization to do so. This is the problem known as “going dark.”

While investigations used to rely on physical evidence – like handwritten notes, or documents stored in filing cabinets – as you can imagine, in the 21^st century that kind of evidence is growing scarce. Our ability to track and prosecute criminals now often depends on instant messages, emails and other forms of digital information. In fact, nearly every criminal investigation we undertake at the federal level relies on electronic evidence.

But as new ways of using encryption become an increasingly standard feature of personal electronic devices and messaging platforms, companies are losing the ability to respond to lawful processes. Those materials are increasingly inaccessible to law enforcement officers, even when we have a warrant to examine them. And we find ourselves facing obstacles which can stop our investigations and prosecutions in their tracks.

The security of our online information is critically important, and so is the legal process that protects our values and our safety. These are complementary, not competing priorities. After all, digital security is a vital tool, but it is not a cure-all – especially when it impedes our ability to protect ourselves and each other in the physical world.

The Department of Justice is completely committed to seeking and obtaining judicial authorization for electronic evidence collection in all appropriate circumstances. But once that authorization is obtained, we need to be able to act on it if we are to keep our communities safe and our country secure.

From gang activity to child abductions to national security threats, the ability to access electronic evidence in a timely manner is often essential to successfully conducting lawful investigations and preventing harm to potential victims.

As FBI Director [James] Comey recently said, in May, two terrorists attempted to kill a lot of people. One of the terrorists exchanged 109 messages with an overseas terrorist. We have no idea what he said because it was encrypted. That is a big problem. We have to grapple with it.

That’s why the Justice Department and organizations like the International Association of Chiefs of Police, the National District Attorneys Association and the Major Cities Chiefs Association feel strongly that there needs to be a way for law enforcement to retrieve critical information in cases where it’s necessary and authorized. We are committed to working with innovators, leaders and problem-solvers like you to figure out how we can best meet this public need together.

Of course, our interest in working together with you extends beyond this particular issue. The Internet has so fundamentally changed the way we live our lives that there are times when institutions like law enforcement must evolve. And as we seek to adapt to this new reality in a wide variety of ways, your creativity, your expertise and your leadership can help us ensure that the innovations we enjoy will benefit and protect the American people – and not those who would harm them or their liberties and rights.

We understand that this is no easy task. These are novel and difficult challenges. But what makes us confident about our ability to succeed is that, throughout our history, this country has always found a way to move forward while retaining the values that make us who we are. We are certain that we will do the same in the digital age. And together, we will build a brighter, safer and more prosperous future for all.

Thank you for your ongoing cooperation in that effort, and for your commitment to our shared goals. I look forward to all that we will accomplish – together – in the weeks and months ahead.

MIL Security OSI –

February 6, 2025
MIL-OSI Global: Trump’s second tone: authoritarian, radical and triumphalist in a divided US

Source: The Conversation – France – By Jérôme Viala-Gaudefroy, Spécialiste de la politique américaine, Auteurs historiques The Conversation France

US President Donald Trump’s inaugural address on January 20 revealed the key themes of his rhetoric–triumphalism and overt authoritarianism–and provided insight into the programme he wants to implement. However, accomplishing his goals will not be easy amid deep divisions within the country that narrowly elected him.

The triumphant hero: martyr and messiah

In his 2017 inaugural address, Trump delivered a populist message decrying “the establishment” for the “carnage” afflicting “forgotten Americans”. Eight years later, in the longest inaugural speech in four decades, he painted a starkly different picture–one of a victorious and ambitious country with himself as both its savior and an embodiment of its triumph.

Trump used the words “I,” “me” and “my” 50 times in his 2025 address, compared to just four in 2017, deliberately merging his personal identity with that of the nation.

J. Viala-Gaudefroy, Fourni par l’auteur

He cast himself as both a hero-martyr –“tested and challenged more than any president in our 250-year history”– and the sole leader capable of solving the country’s problems. He linked his personal journey to divine intervention, declaring that God had saved him on July 13, the day he survived an assassination attempt in Pennsylvania, “I was saved by God to make America great again.”

A radical crackdown on immigration

Trump’s stance on immigration is significantly more extreme than his 2017 agenda. While his first term focused on reinforcing borders, he now frames illegal immigration as an “invasion” requiring military intervention. On inauguration day, the president signed several executive orders, including one seeking to eliminate birthright citizenship despite its protection under the 14th Amendment. His hardline approach energizes supporters within his conservative base, some of whom subscribe to the “great replacement” theory and view his policies as necessary to preserve American identity.

Culture wars: race, gender and education

In his second inaugural address, Trump expanded his rhetoric to encompass culture war issues, aggressively targeting diversity, equity, and inclusion (DEI) policies in US workplaces. He accused the state of “socially engineering race and gender into every aspect of public and private life”, and then began dismantling programmes promoting equality, including recruitment efforts aimed at hiring racial and sexual minorities within the federal government.

His executive orders rescind measures dating back to the Civil Rights era, including one from president Lyndon B. Johnson mandating equal opportunity policies for federal contractors. Echoing president Ronald Reagan, Trump framed these actions in anti-racist language –“We will forge a society that is colorblind and merit-based”– disregarding the well-documented realities of systemic racism.

Trump also asserted that “there are only two genders, male and female”, and has signed an order recognizing only biological sex at birth. Framing this move as a defense of women, he argues that their “safe spaces”, including bathrooms and sports competitions, must be protected from individuals who “identify” as female.

In education, he decried critical perspectives on US history as “unpatriotic”, insisting that schools instill national pride instead of “teaching our children to hate our country”. His plan includes reducing or eliminating federal funding for schools that teach “inappropriate racial, sexual, or political content” or mandate vaccines and mask-wearing–despite education policy largely falling under state jurisdiction.

Reviving founding myths

Trump’s historical narrative is steeped in romanticized patriotism. He revived the myth of “the frontier”, a late 19th century ideal portraying westward expansion as the ultimate symbol of American dynamism. This narrative ignores histories of the genocide of indigenous peoples and environmental destruction.

His vision of “inexhaustible” natural resources –particularly shale oil and gas, described as “liquid gold”– reflects this ideology of relentless economic expansion and 19th century “bonanza economics”. By rejecting US conservationist traditions, Trump is prioritizing industrial growth over environmental sustainability.

Expansionism reimagined: from the frontier to space

Trump draws inspiration from president William McKinley (1897–1901), an advocate of expansionism during the Spanish-American War, which brought territories such as the Philippines and Puerto Rico under US control. Reviving the concept of “manifest destiny”, he merged exceptionalism with expansionism, vowing to “plant the American flag on Mars.”

Trump restated his intention to rename the Gulf of Mexico the “Gulf of America”–a gesture with little practical impact given that much of the gulf lies outside US territory. While he has expressed interest in purchasing Greenland (which he has also claimed to be willing to take over) and even annexing Canada, he mentioned neither in his inaugural speech. However, he did promise to take control of the Panama Canal, justifying the move with a series of lies and exaggerations regarding its history and operation.

A new golden age or “Gilded Age”?

Trump’s admiration for McKinley extends to his economic policies. He envisions a protectionist strategy driving national reindustrialization. Yet, McKinley’s era–the “Gilded Age”–was marked by extreme inequality, a lack of income and corporate taxes, minimal regulation and rampant corruption. The wealthiest figures of the time, later dubbed “robber barons”, mirror the oligarchic ambitions of Trump’s current supporters.

Ironically, as economist Douglas A. Irwin notes, the economic prosperity of the late 19th century was not driven by tariffs but by mass immigration. Between 1870 and 1913, the US population doubled due to an influx of unskilled laborers, a reality at odds with Trump’s strict immigration agenda.

A nation divided under an assertive authoritarianism

Trump’s vision, as outlined in his speech, is one of maximal presidential power, where justice is subordinated to political goals. His decision to pardon over 1,500 individuals convicted for their involvement in the January 6, 2021 Capitol riot underscores this authoritarian approach, reinforcing the idea that traditional laws do not apply to his most loyal and even violent supporters.

He has also launched a sweeping purge of the federal administration, citing “integrity, competence, and loyalty” as guiding values. Additionally, he has openly planned to use the Justice Department and FBI for political purposes.

Unlike previous presidents, Trump made no effort to unite a deeply divided nation during his address. He ignored the tradition of acknowledging his predecessor, Joe Biden, and instead declared his electoral victory proof that “the entire nation is rallying behind our agenda.”

However, the US remains fractured politically. Trump secured less than 50% of the popular vote in the November election, his party holds the narrowest House majority since the 1930s, and he entered office with one of the lowest initial approval ratings in 70 years–just 47%. His personal favorability was even lower, hovering around 41% (Reuters, NPR).

This polarization is evident in the public reaction to his most controversial policies, such as his pardoning of the January 6 rioters just after his inaugural address. While his base celebrates these decisions, the broader American public largely disapproves. The fundamental question remains: can US institutions withstand the growing tensions? Without majority support, realising Trump’s most radical societal and political agenda may prove an uphill battle.

Jérôme Viala-Gaudefroy ne travaille pas, ne conseille pas, ne possède pas de parts, ne reçoit pas de fonds d’une organisation qui pourrait tirer profit de cet article, et n’a déclaré aucune autre affiliation que son organisme de recherche.

– ref. Trump’s second tone: authoritarian, radical and triumphalist in a divided US – https://theconversation.com/trumps-second-tone-authoritarian-radical-and-triumphalist-in-a-divided-us-248502

MIL OSI – Global Reports –

February 6, 2025
MIL-OSI USA: Cornyn Votes to Confirm Pam Bondi for Attorney General

US Senate News:

Source: United States Senator for Texas John Cornyn
WASHINGTON – U.S. Senator John Cornyn (R-TX) released the following statement after Pam Bondi was confirmed as Attorney General of the United States:
“The Biden-Harris administration weaponized the rule of law and allowed cartels and fentanyl to devastate our communities. Throughout her confirmation process, Pam Bondi has demonstrated a clear commitment to restoring trust and integrity in institutions like the Department of Justice and the FBI, and to ending the Biden-Harris administration’s failed border policies. I have full confidence she will do just that.”

MIL OSI USA News –

February 6, 2025
MIL-OSI USA: Member of Al-Qaeda in the Arabian Peninsula Sentenced to 44 Years in Prison for Terrorism Offenses

Source: US State of California

Minh Quang Pham, also known as “Amim”, 41, was sentenced today to 44 years in prison and a lifetime of supervised release for attempted suicide bombing in alliance with al-Qaeda in the Arabian Peninsula (AQAP), a designated foreign terrorist organization.

“The defendant was sentenced for an attempt to commit an act of terrorism and plotting a suicide bombing on behalf of AQAP,” said Devin DeBacker, head of the Justice Department’s National Security Division. “The Justice Department will not rest in seeking justice for acts of terrorism and will continue to thwart any attempt to jeopardize global security.”

“Pham coordinated with known terrorist Anwar al-Aulaqi on a plot to conduct a suicide bombing at Heathrow International Airport which could have killed or injured many people, but fortunately that plan was stopped,” said Assistant Director David J. Scott of the FBI’s Counterterrorism Division. “Pham also tried to recruit others to commit acts of terrorism. The FBI will work with our partners to hold accountable those who align themselves with terrorist organizations and attempt to carry out acts of violence.”

“Minh Quang Pham’s actions were not just an affront to the safety of this country, but to the principles of peace and security that we hold dear,” said U.S. Attorney Danielle R. Sassoon for the Southern District of New York. “Today’s sentencing underscores our collective resolve to stop terrorism before it occurs, and place would-be terrorists in prison.”

According to court documents, in December 2010, Pham informed others that he planned to travel to Ireland while residing in London. From Ireland, he traveled to Yemen, the principal base of operations for AQAP. Pham traveled to Yemen in order to join AQAP, wage jihad on behalf of AQAP, and martyr himself for AQAP’s cause. After arriving in Yemen, he swore an oath of loyalty to AQAP in the presence of an AQAP commander.

While in Yemen in 2010 and 2011, Pham provided assistance to and received training from Anwar al-Aulaqi, a U.S.-born senior leader of AQAP. Al-Aulaqi advised Pham to return to the U.K. for the purpose of finding and making contact with individuals who, like Pham, wanted to travel to Yemen to join AQAP. Al-Aulaqi also provided Pham with money, as well as a telephone number and e-mail address that Pham was to use to contact al-Aulaqi upon his return to the U.K. In addition, Pham exchanged his laptop computer with al-Aulaqi, who provided him with a new “clean” laptop to take with him when he returned to the U.K. so that the authorities would not find anything if they searched his computer.

In or about June 2011, prior to his departure from Yemen, Pham approached al-Aulaqi about conducting a suicide attack whereby he would “sacrifice” himself on behalf of AQAP. Al-Aulaqi personally taught Pham how to create a lethal explosive device using household chemicals and directed Pham to detonate such an explosive device at the arrivals area of Heathrow International Airport following Pham’s return to the U.K. in 2011. Al-Aulaqi instructed Pham to carry an explosive in a concealed backpack and target the area where flights arrived from the U.S. or Israel. During this time, Pham made videos depicting his preparation to carry out that attack. In one video, Pham is shown wiring an electrical device for the use of making an explosive device. In another video, he sketches an explosive device to be contained in a backpack, and in a third, Pham wears a backpack with wiring for explosives on it, which he turns on in the video.

During this time, around June or July 2011 — shortly before Pham returned from Yemen to the U.K. — Pham recorded a video in which he attempted to recruit and encourage individuals in the West to engage in violent jihad abroad or in their home countries. In this video, he also expresses a desire to martyr himself. At the outset of this video, consisting of an approximately 13-minute-long monologue, Pham states that, “America itself is not fighting a war with a group or an organization, they are fighting with the army of Allah, the believers.” He continues, in part, “We have that opportunity, that ability to be in their midst, in their land . . . and I advise the brothers inshallah to, whatever you can, to gather and prepare and strike the enemy in their own land . . . The saying, a thousand cuts, you hit them with as much as you can until inshallah the enemy will bleed to death.” During his time in Yemen, Pham also assisted with the preparation and dissemination of AQAP’s propaganda magazine, Inspire. Pham, who has college degrees in both graphic design and animation, worked directly with now-deceased U.S. citizen, Samir Khan, who was a prominent member of AQAP responsible for editing and publishing Inspire.

Pham also received a six-page document entitled “Your Instructions” from al-Aulaqi in Yemen, which provided detailed instructions on how Pham was to commit his suicide attack at Heathrow. The document from al-Aulaqi instructed Pham, “[d]o not do anything for the first three months” and “[y]ou should target Christmas/ New Year season[.]” The instructions from al-Aulaqi provided explicit direction about the importance of using shrapnel to kill as many people as possible, including that “[t]he proper use of shrapnel is as important as the main charge itself. The detonation wave from a main charge of AP by itself is most likely not going to cause the death of anyone except those who are in its immediate vicinity. It is the shrapnel that would do the job. You may imagine this IED as a shotgun that is firing in all directions.” The document therefore instructed Pham to take “special care” with the “proper arrangement and choice of shrapnel,” and to “poison” it to inflict maximum death.

On July 27, 2011, Pham returned to the U.K. Upon his arrival at Heathrow, U.K. authorities detained Pham, searched him, and recovered various materials from him, including a live round of 7.62mm caliber armor-piercing ammunition, which is consistent with ammunition that is used in a Kalashnikov assault rifle, a type of weapon for which Pham received training from AQAP in Yemen. U.K. authorities released Pham and cautioned him for his possession of the live round of ammunition, before, in December 2011, arresting him pursuant to their authorities under U.K. immigration law. In searches of Pham’s residence, other locations, and vehicles, U.K. authorities recovered several pieces of electronic media. Among other things, a forensic analysis of Pham’s electronic media showed that he was accessing speeches and writings of al-Aulaqi as late as December 2011 — months after Pham’s return to the U.K.

On May 24, 2012, a grand jury returned an indictment charging Pham with terrorism offenses and U.S. authorities sought Pham’s extradition from the U.K. He was provisionally arrested with a view towards extradition on June 29, 2012, and he was extradited to the United States on Feb. 26, 2015. On Jan. 8, 2016, Pham pleaded guilty to terrorism offenses related to certain of the same underlying conduct. On May 27, 2016, Pham was sentenced by U.S. District Judge Alison J. Nathan principally to a term of 40 years in prison. On Sept. 12, 2017, the U.S. Court of Appeals for the Second Circuit affirmed Pham’s conviction and sentence. Thereafter, Pham made a motion that, based on intervening Supreme Court decisions, resulted in the vacatur of one of the counts of his conviction. Ultimately, the government, with Pham’s consent, moved to vacate Pham’s earlier convictions. On April 8, 2021, a grand jury returned a superseding indictment, reinstating certain charges and filing other new charges against Pham, and which formed the basis for Pham’s May 11, 2023, guilty plea and conviction.

The FBI Washington and New York Field Offices investigated the case. The Justice Department’s Office of International Affairs, Metropolitan Police Service/SO 15 Counter Terrorism Command at New Scotland Yard, Crown Prosecution Service, and the Home Office provided assistance in the investigation, extradition, and prosecution of the case.

Assistant U.S. Attorney Jacob H. Gutwillig for the Southern District of New York and Trial Attorney John Cella of the National Security Division’s Counterterrorism Section prosecuted the case.

MIL OSI USA News –

February 6, 2025
MIL-OSI Security: Principal Deputy Associate Attorney General Bill Baer Delivers Remarks at 2016 American Indian and Alaska Native Heritage Month Observance Program
Source: United States Attorneys General 13

Thank you, Tracy [Toulou], for your kind words and for the contributions you and your dedicated team at the Office of Tribal Justice (OTJ) have made to promote tribal justice and public safety in Indian country. And thank you to Director Richard Toscano and the Justice Management Division (JMD) Equal Employment Opportunity Staff (EEOS) for organizing today’s observance program and to Gina Allery and the DOJ Native American Association for their support as well.

In the month of November, we honor the history and traditions of America’s indigenous peoples. We join together today to celebrate American Indian and Alaska Native Heritage Month and to welcome our keynote speaker, Tracy Canard Goodluck, to the department.

The theme this year – “Serving Our Nations” – captures the work that we together are doing here at the department. That shared commitment to improving the daily lives of tribal communities has made and will continue to make a difference. Here are just a few highlights:
- We worked across components to secure passage of landmark legislation with the Tribal Law and Order Act (TLOA), which reaffirmed our commitment to building and sustaining healthier, safer tribal communities and renewed our enduring promise to respect sovereignty and self-determination. Our efforts also helped secure passage of the Violence Against Women Act (VAWA) Reauthorization, which recognizes tribes’ inherent power to exercise “special domestic violence criminal jurisdiction” over certain defendants regardless of their Indian or non-Indian status.
- We built and began implementing the Tribal Access Program for National Crime Information (TAP), which provides federally recognized tribes access to national crime information databases for both civil and criminal purposes. Just last month, we announced an expansion of TAP incorporating feedback from participating tribes who identified and shared best practices to further strengthen tribal institutions’ ability to keep communities safe.
- Over the past seven years, the department has awarded over 1,650 Coordinated Tribal Assistance Solicitation (CTAS) grant awards to American Indian tribes, Alaska Native villages, tribal consortia and tribal designees to improve public safety in Tribal communities and to strengthen tribal justice systems. These figures include 236 CTAS grants totaling more than $102 million that were awarded in the recently completed 2016 grant cycle.
- We established the Gaye Tenoso Indian Country Fellowship. The program honors a former 30-year Department of Justice attorney by creating public service opportunities in Indian country for young lawyers with expertise and a commitment to federal Indian law, tribal law, and Indian country issues.
- We published the Department of Justice Consultation Policy and the Attorney General’s Statement of Principles for Working with Federally Recognized Indian Tribes, both of which are intended to guide the work of this department in Indian country going forward.
- We created the Tribal National Leadership Council, a democratically-elected group of tribal leaders responsible for advising the Attorney General.
- We established the National Indian Country Training Initiative to ensure that the department prosecutors, as well as state and tribal criminal justice personnel, receive the training and support needed to address the particular challenges relevant to Indian country.
- And we built law enforcement partnerships between the FBI and sister agencies and identified tribal liaisons within each U.S. Attorney’s Office that has Indian country within its jurisdiction. Indeed, I was privileged to meet many of these dedicated Assistant U.S. Attorneys (AUSAs) in a recent visit to the Flathead Reservation in Montana.
- We have shown that we can collaborate effectively across the department and across the federal government to better serve Indian country. The department’s work on the Indian Child Welfare Act—involving the Environment and Natural Resources Division, the Office of Tribal Justice, the Civil Rights Division, and the Office of Justice Programs, as well as the Departments of the Interior and Health and Human Services—is just one example. Our efforts have promoted compliance with this important federal law that seeks to keep Indian children with their parents, extended families, and tribal communities.
We can point with pride to the Environment and Natural Resource Division’s (ENRD) work to protect tribal resources, water rights and treaty hunting and fishing rights and to its defense of the Department of the Interior’s authority to acquire land into trust for tribes. Recent victories in both the district court and the court of appeals helped preserve the treaty fishing rights of Pacific Northwest Tribes by removing barriers to salmon passage. ENRD’s efforts recognize the importance of protecting the environment and natural resources of the First Nations, who were also the first environmental stewards of this great land and from whom we still have much to learn.

I am pleased to report that the department has continued to make progress in resolving long-standing tribal trust cases. In 2016 alone, we reached settlements with 17 tribes for almost $493 million. Since the start of the Obama Administration, the department has settled the claims of 104 tribes for a total of $3.35 billion. These settlements represent a significant milestone in improving the government-to-government relationship between the United States and Indian tribes, and allow the federal government and the tribal nations to move beyond tensions that were exacerbated by litigation.

Even as we celebrate the progress we have made, we must acknowledge that our work is far from finished. We have all been watching events in North Dakota over the weekend. History teaches that we make progress in the face of conflicting views where we honor the right to disagree peacefully with one another. The Justice Department has been in communication with local law enforcement, as well as tribal representatives and protesters, to promote communication and lower tensions. We will continue those efforts.

There are a lot of challenges in Indian country, and it continues to be the responsibility of those of us at the department to identify and correct the injustices that persist. I am proud to be affiliated with a department that does not shy away from tackling those challenges, and embraces the opportunity to work directly with Tribes across the country.

Before we move on to the next part of our program, I would like to recognize the work of Lorraine Edmo, the Deputy Director for Tribal Affairs at the Office on Violence Against Women and a member of the Shoshone-Bannock Tribes. She has dedicated her decades-long career to seeking out and correcting injustice in Tribal communities.

Lorraine is retiring soon and will be greatly missed. Her sustained dedication to supporting Tribal communities has been an inspiration. Thank you, Lorraine, for your tremendous service. We are grateful that your husband, Jerry Cordova of the Department of the Interior, is also participating here today. We especially respect public service when it’s a family affair, and we wish you both well.

I now turn to the privilege of introducing our keynote speaker, Tracy Canard Goodluck of the Oneida and Mvskoke Creek Nations. Her passion for education and improving outcomes for students in tribal communities has made her a role model to many. In her current role of Senior Associate Director in the White House Office of Public Engagement and Intergovernmental Affairs, Tracy serves as a key liaison to tribal communities for the Administration. Previously, she was a policy advisor at the Domestic Policy Council and, as a Presidential Management Fellow, handled the legislative portfolio for Indian affairs at the U.S. Department of the Interior. We are honored to have her here today. Please join me in welcoming Tracy Canard Goodluck.

MIL Security OSI –
February 6, 2025
MIL-OSI Security: Assistant Attorney General Leslie R. Caldwell Delivers Remarks Highlighting Cybercrime Enforcement at Center for Strategic and International Studies

Source: United States Attorneys General 13

Good morning, and thank you, Jim [Lewis], for that kind introduction. I am pleased to be here speaking to you today, and I want to thank the Center for Strategic and International Studies (CSIS) for having me.

Over the past two and a half years, I have had the honor of serving as the Justice Department’s Assistant Attorney General for the Criminal Division – and with that, the responsibility of ensuring that the division and its over 700 prosecutors have the support and authorities they need to fulfill their responsibilities to the American people. I have also had the opportunity to see first-hand the dedication, rigor, intelligence and respect that America’s prosecutors bring to their work every day. As my time as the Assistant Attorney General of the Criminal Division comes to a close, I am incredibly proud of where the division stands today and all that we have accomplished together.

One constant truth about investigating and prosecuting crime is that it is never without its challenges, although the precise nature of the difficulties and obstacles we face changes with the times. Today, some of the most significant hurdles we encounter relate to technology and the Internet.

Innovation in computing, the Internet, and related services has had tremendous benefits for our economy, our ability to connect with others, and the convenience, efficiency, and security of our everyday lives. It has also transformed how we in law enforcement do our jobs by expanding our ability to detect, investigate and prosecute criminal activity.

However, these same innovations permit criminals to more easily victimize Americans, including from afar, while concealing their identities and enabling destruction of evidence. We face an enormous task in responding to these new threats – ranging from botnets and ransomware to online child sexual exploitation and firearms trafficking, to name just a few – and that task is not getting any easier. This morning I will focus on four challenges that have been and must continue to be the center of our work if we intend to succeed:
•   First, the growth of sophisticated, global cyber threats;
•   Second, dangerous loopholes in our legal authorities;
•   Third, the widespread use of warrant-proof encryption; and,
•   Fourth, inefficient cross-border access to electronic evidence.

As I will explain in more detail, the past few years have marked some significant progress in some of these areas. We have grown more nimble and effective in cooperative international law enforcement efforts to bring cyber criminals to justice and remediate cybercrime. And we have managed to effect some targeted and common-sense improvements in legal authorities. But in other areas, the challenges remain, and in some cases have become more prominent. Let me begin with the threat. The global nature of the Internet means that criminals now can easily victimize more people within the United States in more dangerous ways, all without ever setting foot here. Some of the most significant criminal activity in recent years is the result of sophisticated criminal groups reaching across our borders from perceived safe harbors. As we rely more and more on network communications to handle virtually every aspect of our lives, the cost of cybercrime will only rise – to over two trillion globally by 2019, according to some estimates – and the United States is a uniquely attractive target.

We have responded first and foremost by aggressively identifying, apprehending, and prosecuting offenders. This past October, for example, the Russian cybercriminal Roman Seleznev was convicted by a jury in Seattle. Seleznev was a hacker who, from the other side of the world, pilfered data for millions of payment cards from the computer systems of small business owners across America – a crime that strikes at the trust and security of our everyday financial transactions. Seleznev was the son of a member of the Russian parliament, and the Russian government filed diplomatic protests and tried to pressure us into releasing him. But that’s not how justice in America works, and he is now in an American prison.

We recognize that we cannot prosecute our way out of cybercrime, but prosecution must remain an integral component of our response to global cyber threats. That is why foreign hackers like “Guccifer” – who hacked into the email and social media accounts of about a hundred Americans, including two former U.S. presidents – as well as Vladimir Drinkman and Dmitriy Smilianets – who, along with co-conspirators, conducted a worldwide hacking scheme that compromised more than 160 million credit card numbers – have likewise found themselves within the reach of American law enforcement. Thanks to the work of our colleagues in the National Security Division, the same holds true for individuals like Su Bin – who conspired with Chinese military hackers to steal cutting-edge U.S. aircraft designs – and Ardit Ferizi – who shared stolen PII belonging to 1,300 U.S. military and government personnel with a member of ISIL, for publication on a hit list. All have now been brought to the United States to face justice.

The department’s strong track record in this area is a critical deterrent to would-be attackers. Over the last twenty years, for example, our Computer Crime and Intellectual Property Section (CCIPS) – the centerpiece of our prosecutorial response to criminal cyber threats – has successfully prosecuted cases involving more than one billion stolen pieces of information, including payment card data, email addresses and social security numbers – more than three pieces of data for every American alive today.

Our international partnerships make this work possible. And they have been key in another way as well. Even when prosecution is not yet an option – for example, because we have been unable to identify or apprehend a criminal target – we have developed operational expertise in disrupting cybercriminal infrastructure in the United States and abroad. For example, we have worked hand-in-hand with our foreign partners to address technical threats like botnets, so-called “bulletproof” hosts, Darknet markets and international hacking forums.

Indeed, just last week, the department led a multinational operation to dismantle a vast network of dedicated criminal servers known as “Avalanche,” which allegedly hosted more than two dozen of the world’s most dangerous and persistent malware campaigns. The Avalanche network served clients operating as many as 500,000 infected computers on a daily basis and is associated with monetary losses in the hundreds of millions of dollars worldwide. We were joined in this effort by investigators and prosecutors from more than 40 jurisdictions across the globe. We must maintain existing international law enforcement cooperation – and develop new mechanisms to work with foreign partners – if we hope to continue these successes.

These efforts have also benefitted from growth in our technical and investigative capacity. The Criminal Division has steadily increased resources for CCIPS, along with its in-house Cybercrime Lab, over the last two years. The Cybercrime Lab has become the go-to resource across U.S. law enforcement for intractable problems in accessing and understanding digital evidence, whether that means uncovering evidence that a defendant accessed online terrorist radicalization materials to rebut a claim of entrapment, or cracking passwords to dozens of devices that hold key evidence of serious crimes.

We have also found that augmenting our own expertise and legal authorities with insight from private sector institutions allows us to identify and develop new, creative responses. For example, in 2014, the FBI, in conjunction with a coalition of nearly a dozen foreign countries and a group of elite computer security firms, dismantled the Gameover Zeus botnet. That botnet, which infected more than one million computers around the world, inflicted over $100 million in losses on American victims alone, and was responsible for the spread of the Cryptolocker ransomware. The Gameover Zeus operation represents what we can achieve when law enforcement agencies collaborate with private sector experts, and indeed, many private organizations provided similar assistance in the recent Avalanche take-down. I hope that it will continue to serve as a model for the department’s future work.

This relationship works in both directions. The investigative experience of our CCIPS prosecutors can offer important lessons for private sector entities. In addition, navigating the federal laws that govern network monitoring practices – laws in which CCIPS specializes – can be fraught for organizations seeking to improve their cybersecurity. That is why, two years ago, we created the Cybersecurity Unit, a group of CCIPS prosecutors who can leverage their case-related experience to develop and share practical cybersecurity advice with the private sector. The Unit has also played an integral role in implementation of the Cybersecurity Information Sharing Act (CISA). So not only have we benefitted from private sector experts for our operational needs, but we have made a practice of sharing our knowledge base as well.

Even as the department addresses technical obstacles to preventing and prosecuting cybercrime, however, we confront a second challenge: arbitrary gaps in the law that frustrate some of our most pressing investigations. One example of such a loophole was the venue provision of Rule 41 of the Federal Rules of Criminal Procedure.

As that Rule existed prior to Dec. 1, 2016, when law enforcement sought court approval for a search warrant, it generally was required to seek authorization from a court sitting in the same geographic district where the property to be searched was located. This Rule made perfect sense in dealing with the physical world. But in the cyber-world, we increasingly face scenarios where criminals use technology to hide the location of their computers, meaning that we could not know where the computers were located. In those circumstances, federal law did not clearly identify which judge could authorize a search.

Similarly, we regularly encounter crimes like mass hacking through botnets that are carried out in multiple districts at once, all across the country. But in order to respond in a timely, comprehensive manner, the prior version of the Rule arguably required authorities to obtain a warrant in each district – up to 94 in all, across 9 time zones, ranging from the Virgin Islands to Guam.

Last week, a three year effort, spearheaded by the Criminal Division, and approved by the U.S. Supreme Court, culminated in a targeted, procedural fix to the venue provisions of the Rule to ensure that technology does not render our investigative abilities obsolete. The update to the Rule does not alter the probable cause or other standards we must meet to obtain a search warrant. What the Rule does change is that now, when criminals hide the location of their computers through anonymizing technology, we don’t have to figure out in which federal district the computers are physically located before we can act to stop criminal activity. Likewise, when a criminal deploys a botnet that indiscriminately infects computers nationwide – as many botnets now do – we don’t have to go to as many as 94 different judges.

The need to update Rule 41 was not theoretical. Today, dozens of websites on Tor – a proxy network – openly distribute images of child rape and sexual exploitation, where they are frequented by tens of thousands of pedophiles. These sites can thrive in the open because proxy networks, like Tor, hide the locations of the criminals’ servers and the identities of their administrators and users. While law enforcement – and the general public – can easily find images of child sexual exploitation by visiting one of these sites, we often cannot locate and shut down the websites or identify and apprehend the abusers. More troubling, the child victims stand little chance of rescue.

The recent investigation of “Playpen,” a Tor site used by more than 100,000 pedophiles to encourage child sexual abuse and trade sexually explicit images of that abuse, illustrates why a Rule 41 fix was necessary. In that case, authorities were able to wrest control of the site from the administrators, and then obtained court approval to use a remote search tool to retrieve limited information, including the user’s IP address, only if a user accessed child pornography on the site. This enabled a traditional, real-world investigation, leading to more than 200 active prosecutions and the identification or rescue of at least 49 American children who were subject to sexual abuse.

Yet in some of the resulting cases, federal courts relying on the language of the prior version of Rule 41 found that even though the probable cause and other standards for obtaining a warrant were satisfied, evidence obtained in searches nevertheless had to be excluded because the judges who issued warrants lacked venue over the computers, which turned out to be physically located outside their geographic districts. This is a perverse result, as it would mean that criminals who are savvy enough to hide their locations – which is not difficult given current technologies – could place themselves beyond the reach of law enforcement.

This is a good example of why the amendments to Rule 41 are such a crucial step forward. They make clear which courts are available to consider whether a particular warrant application comports with the Fourth Amendment, without altering in any way the substantive requirements for – or privacy protections provided by – a warrant. This will ensure that criminals who use anonymizing technologies are not immune from justice, and that threats like botnets are not too big to investigate and remediate effectively.

This fix is a not a cure-all, however. Our response to cyber threats requires revisiting laws that simply did not anticipate and cannot adjust to modern technology. We must continue to move forward – not backward – to ensure that our laws protect Americans from criminals, and not the other way around.

I now want to turn to some challenges that, despite the best efforts of many, will continue to confront policymakers in the years to come. As society’s use of computers and the Internet has grown, so too has the importance of digital evidence in criminal investigations. In nearly every criminal investigation we undertake at the federal level – from homicides and kidnappings to drug trafficking, organized crime, financial fraud and child exploitation – critical information comes from smart phones, computers and online communications, often instead of physical evidence. Yet, these materials are increasingly unavailable to law enforcement as a result of certain implementations of encryption, even when we have a warrant to examine them.

This is because, in an attempt to market products and services as protective of personal privacy and data security, companies increasingly are offering products with built-in encryption technologies that preclude access to data even when a court has issued a search warrant. Service providers with more than a billion user accounts, that transmit tens of billions of messages per day around the world, now advertise themselves as unable to comply with warrants. And device manufacturers that have placed hundreds of millions of products in the market have embraced the same principle. We in law enforcement often describe this sort of encryption as “warrant-proof encryption.”

Let me be clear: the Criminal Division is on the front lines of the fight against cybercrime. We recognize that the development and adoption of strong encryption is essential to counteracting cyber threats and to promote our overall safety and privacy. But certain implementations of encryption pose an undeniable and growing threat to our ability to protect the American people. Our inability to access such data can stop our investigations and prosecutions in their tracks.

Inaction is not a suitable response. Our occasional success in accessing information protected by seemingly “warrant-proof encryption” is unpredictable and inadequate. There are devices in evidence lockers across the country that remain locked.

As the President reminded us recently, the Government has different responsibilities – a different “balance sheet” and different “stakeholders” – than a corporation. There is nothing wrong with companies pursuing profits and marketing strategies, but no one should expect that they will take into account all of the societal interests that are at stake. And that is especially true for our public safety mission. Our ability to protect Americans from crime has become dependent, in thousands of cases, on the business decisions of for-profit corporations. More troublingly, even when companies have the technical ability to reasonably assist us in accessing encrypted information, they have refused to do so for fear of “tarnishing” their image. Regardless of which side of this issue you are on, we can all agree that market-driven decisions are not and have never been a substitute for sound public safety policies.

Business decisions made by for-profit companies have had enormous effects on our public safety in other ways as well. Data held by major Internet service providers can be crucial to identifying and holding accountable the perpetrators of virtually every federal crime we handle. Increasingly, however, American providers and other providers subject to the jurisdiction of the United States are storing such information outside the United States, and not always at rest and in the same location. The data can be partitioned and stored in multiple locations, or moved about on an ongoing basis, and some providers may not even know where all data relating to a particular user is at a given time.

It is this last challenge – foreign-stored digital evidence – that I will close with today. The department has worked diligently to increase the cross-border availability of data, through mechanisms like the 24/7 Network, which facilitates the preservation of digital evidence, as well as mutual legal assistance treaties and the Budapest Convention on Cybercrime, which enhance international cooperation in obtaining that evidence. The Criminal Division has also directed additional resources toward a dedicated cyber mutual legal assistance unit in our Office of International Affairs, which has seen a 1,000 percent increase in incoming requests for computer records since 2000.

But while these are important crime-fighting tools, they have significant shortcomings. The United States has mutual legal assistance treaties with less than half the countries in the world, some of which place limitations on when assistance is available or the types of evidence that can be obtained. Even then, obtaining evidence can take months, if not years. Ireland, for example, reports that in routine cases it takes 15 to 18 months to execute a request for assistance from a foreign country. In less experienced or less cooperative countries, the process can take even longer. Sometimes we never receive a response at all.

Recently, the difficulties caused by foreign-stored data for public safety have become more acute. In July, the Second Circuit Court of Appeals, in the so-called “Microsoft Ireland” case, held that U.S. authorities cannot use a search warrant issued by a U.S. court pursuant to the Stored Communications Act (SCA) to compel a U.S. service provider, such as Microsoft, to produce data that it chooses to store for its own business purposes (and typically without the knowledge or input of its subscribers) outside the United States.

So, what is already a difficult and time-consuming process of gathering electronic evidence may now also become an impossible one, for both the United States and our partners. Since the Microsoft decision was handed down, U.S. providers such as Google, Microsoft and Yahoo! have refused to produce information that they have chosen to store abroad in response to search warrants issued by courts even outside the Second Circuit. This has been the case even in instances where the account-holder was an American citizen residing in the United States, and when the crime under investigation is carried out on American soil. And this includes warrants obtained on behalf of foreign countries pursuant to mutual legal assistant requests.

U.S. law generally does not require our providers to store this data in a particular location or make it accessible in any particular way. But as a result, the ability of law enforcement to effectively investigate serious crime may now be determined entirely by a provider’s data management practices, well-intentioned or not. One major American provider, for example, is unable to determine the country in which foreign-stored data is located; and even if it could, the data is frequently moved and may not be in the same country from day to day. Under the Second Circuit’s decision, a SCA warrant is not available. But sending an MLAT request to a foreign country could result – after months of delay – in a notification that the relevant data is no longer there.

It is for this reason that, in October, the department filed a petition for the case to be reheard by the entire Second Circuit en banc. It is also why we intend to submit legislation to Congress to address the decision’s significant public safety implications. This issue must be resolved before we move to other important initiatives, such as legislation to implement a cross-border data agreement with the United Kingdom.

Looking forward, I cannot predict how the rehearing petition, or the broader concerns implicated by the Microsoft decision, will play out. And I suspect that, whether the issue relates to warrant-proof encryption or cross-border access to evidence, reaching a resolution will be challenging. But these decisions must be made in the policy arena, not by the private sector alone. We cannot allow changing technologies or the economic interests of the private sector to overwhelm larger policy issues relating to the needs of public safety and national security. And we must let government fulfill its fundamental responsibilities to protect the American people.

I know that the panel to follow will focus on some of these challenges for the future, but let me offer my own thoughts here. In each of these areas, we must proceed thoughtfully and balance multiple different legitimate interests. Yet several basic principles should be obvious. First, sitting back and doing nothing is not an acceptable option. The world is changing around us, and those seeking to do harm are evolving with it; if those responsible for ensuring public safety do not have the same ability to adapt, public safety will suffer. Second, these changes pose policy challenges, and we need to develop policy responses. Rather than let evolutions in technology dictate our responses, we must think ahead as a society and develop appropriate frameworks to address new and upcoming challenges before they become crises. And finally, when there are multiple interests at stake – public safety, cybersecurity, international comity and civil rights and civil liberties – we cannot allow the most consequential decisions to be made by a single stakeholder, or leave them to the whim of the commercial marketplace. We would never tolerate that approach in other areas of importance to society, and we should not do so here. Thank you.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: Attorney General Loretta E. Lynch Delivers Remarks at Interfaith Event on the Justice Department’s Commitment to Combatting Hate Crimes

Source: United States Attorneys General 13

Thank you, Imam [Mohamed] Magid, for your kind words; for your hospitality in welcoming me today; and for your outstanding leadership of the All Dulles Area Muslim Society (ADAMS) Center, especially during what I know has been a difficult time for many Muslim Americans. I am proud to stand beside you today. I also want to thank all of the inspiring faith leaders that we just heard from for their moving words. And I want to thank all of you – faith leaders and community leaders; activists and advocates – for all that you do, each and every day, to strengthen, empower and unite our communities.

It is truly inspiring to stand in this space, in front of this audience. This morning, we have gathered under this roof, in this mosque, as men and women of all races, creeds and colors. Some of us were born in the United States, our immigration status having been resolved several generations ago; some of us came here more recently in search of a better life. We may speak different languages; we may read from different books of scripture; we may call our God by different names. But we all love this country and the ideals for which it stands. We all want our children to lead lives of safety and opportunity. We all proudly claim the title of American. And we all hold, as Justice Brandeis proclaimed, “the most important political office … that of the private citizen.” In this assembly, I see a living expression of the American promise: the conviction that every person’s dignity is inherent and equal.

That promise is as old as our nation itself. Twelve score years ago, our forefathers boldly proclaimed that “all men are created equal.” But of course, when those words were written, a large gap existed between America’s founding ideals and America’s founding reality. The very hand that put those words on parchment had also signed the deeds for the sale and purchase of other human beings. For many of our ancestors – for women, African Americans, Native Americans, immigrants and countless others – the promise of American life rang hollow.

But the declaration’s revolutionary statement of equality was too plain and powerful – too “self-evident”, in Jefferson’s words – for that state of affairs to endure. Generation after generation of Americans heard the promise set forth in the Declaration of Independence and the Constitution, and they demanded that it be fulfilled: women who endured ridicule and condescension for seeking the ballot; black soldiers who defended freedom overseas, only to return home to a nation that wouldn’t let them vote, and that sometimes repaid their service with angry violence; marchers who braved the jaws of police dogs at Birmingham, and the sting of cattle prods at Selma; LGBTQ individuals who fought for their civil rights at the Stonewall Inn – through the courage and determination of these and countless others who have gone before us, we have slowly built a society that more fully reflects our founding creed of liberty and justice for all.

That does not mean our work is finished; as you are all well aware, the opposite is true. We all know this work is never finished. Just last month, the FBI released its statistics on the number of hate crimes committed in 2015. The report was a sobering indication of how much work remains to be done. Overall, the number of reported hate crimes increased six percent from 2014. That figure includes increases in hate crimes committed against Jewish Americans, African Americans, and LGBTQ Americans. And, perhaps most troublingly of all, it showed a 67 percent increase in hate crimes committed against Muslim Americans, and the highest total of anti-Muslim incidents since 2001, when 9/11 spurred so many reprehensible acts. And we know that there are many more hate crimes in communities across the country that go unreported.

In addition, all of us have seen the flurry of recent news reports about alleged hate crimes and harassment – from hijabs yanked off of women’s heads; to swastikas sprayed on the sides of synagogues; to slurs and epithets hurled in classrooms. The FBI is working with local authorities to review multiple incidents, and our agents and prosecutors are working to assess whether particular cases constitute violations of federal law.

These incidents – and these statistics – should be of the deepest concern to every American. Because hate crimes don’t just target individuals. They tear at the fabric of our communities, and they also stain our dearest ideals and our nation’s very soul. There is a pernicious thread that connects the act of violence against a woman wearing a hijab to the assault on a transgender man to the tragic deaths of nine innocent African Americans during a Bible study at Mother Emanuel AME in Charleston, South Carolina. As President Obama has said, it is “the moment we fail to see in another our common humanity – the very moment when we fail to recognize in a person the same hopes and fears, the same passions and imperfections, the same dreams that we all share.” The reason we have a cross-section of so many leaders from different faiths here today is because we believe so deeply in certain common values. Regardless of our faith, we believe that we must treat others as we would wish to be treated. Regardless of our faith, we believe that every individual is precious. Regardless of our faith, we believe in our common humanity, and we believe that, in the famous words of Martin Luther King Jr., “injustice anywhere is a threat to justice everywhere.” That is why the Department of Justice – and the entire Obama Administration – regards hate crimes with the utmost seriousness, whether they target individuals because of their race, their religion, their gender or their sexual orientation. And that is why we have worked tirelessly over the last several years to bring those who perpetrate these heinous deeds to justice.

A cornerstone of that work is investigating and prosecuting hate crimes against Muslim Americans, as well as those perceived to be Muslim. Muslim Americans are our friends and family members, our doctors and nurses, our police officers and firefighters. They own businesses and teach in classrooms. Thousands of them have fought for the American flag. Many have died defending it. And yet, too often – especially in the last year, following a number of tragic terrorist incidents, and amidst an increase in divisive and fearful rhetoric – we have seen Muslim Americans targeted and demonized simply because of their faith. And to impose a blanket stereotype on all members of any faith because of the actions of those who pervert that faith is to go backwards in our thinking and our discourse, and to repudiate the founding ideals of this country. This is unacceptable in a nation whose Bill of Rights guarantees the freedom of religion in its very first clause, and the Department of Justice has vigorously prosecuted a number of these repugnant acts.

In recent months, our Civil Rights Division – led by Vanita Gupta, who is here with us today – along with our U.S. Attorneys’ Offices, have convicted a Connecticut man for firing a high-powered rifle at a mosque; a Florida man for threatening to firebomb two mosques and shoot their congregants; a Missouri man for the arson of a local mosque; and a North Carolina man who yelled at a woman and ripped off her hijab on an airplane. And in October, our National Security Division and the U.S Attorney’s Office in Kansas charged three men in connection with their plot to detonate bombs at an apartment complex in Garden City, Kansas, which included a mosque where many members of the local Somali immigrant community gather to pray. These are only a few examples of the Justice Department’s recent prosecutions. There are many more matters that we, often in close partnership with our state and local law enforcement partners, are investigating.

The Justice Department is also working to protect the rights of religious communities to build houses of worship without unlawful interference or harassment. Unfortunately, that task has only become more urgent in recent years. Members of the Civil Rights Division have heard repeatedly about more overt discrimination in both the tone and framing of objections to planned religious institutions, especially mosques and Islamic centers. Our primary tool to combat such discrimination is the Religious Land Use and Institutionalized Persons Act, or RLUIPA. Since September 2010, the department has opened 50 RLUIPA land-use investigations, filed ten lawsuits involving land use, and filed eight amicus briefs in private parties’ RLUIPA cases to inform courts about the law’s provisions and requirements. In the last six years, 38 percent of the Civil Rights Division’s RLUIPA land use cases involved mosques or Islamic schools – a dramatic increase over the percentage of such cases brought during the previous decade.

Religious institutions aren’t the only vulnerable spaces we are determined to keep free of hatred and bias. We all know that in order for our children to learn and thrive, they need access to safe and inclusive classrooms. Earlier this year, the Civil Rights Division launched a new initiative with our U.S. Attorneys’ Offices that will significantly advance our ability to address religious discrimination in schools. And our Community Relations Service, or CRS – led by Paul Monteiro, who is also here with us today – works to ease tensions and promote understanding in communities and schools that have been rocked by traumatic incidents. For example, after a student was allegedly forced to remove her hijab in a school in Massachusetts, the school invited CRS to present its Arab, Muslim, and Sikh Cultural Awareness Program to the school’s staff. CRS also recently appointed its first ever National Program Manager for Muslim, Arab, Sikh and South Asian Communities, and I am so pleased that Harpreet Singh Mokha has joined us here today.

We are also concerned with crimes against our LGBT brothers and sisters. In October, we commemorated the seventh anniversary of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, which expanded the federal definition of hate crimes to included crimes based on gender, disability, gender identity, and sexual orientation. Here, too, we have been active, bringing hate crimes cases in a number of states around the country. Tomorrow, I am traveling to New York to meet with LGBT youth, and to reaffirm the department’s steadfast commitment to the rights and well-being of all LGBTQ Americans.

These are all important efforts, and their impact has been amplified by our efforts to train local and federal law enforcement agencies in how to recognize and investigate hate crimes; how to engage with communities; and how to encourage better hate crime reporting and data collection. These initiatives have helped us to build stronger partnerships between law enforcement officers and the communities we serve, and I am hopeful that those partnerships will stand as a bulwark against hate crimes for years to come.

I am encouraged by what we have accomplished together over the last eight years. But I also know that we face many challenges in the years ahead – challenges that will require the Department of Justice to remain an active force for good in communities from coast to coast. Our federal hate crimes laws are among the most powerful tools we have for creating a more just and equal nation, and career Justice Department prosecutors will continue to enforce them.

Nevertheless, I know that many Americans are feeling uncertainty and anxiety as we witness the recent eruption of divisive rhetoric and hateful deeds. I know that many Americans are wondering if they are in danger simply because of what they look like or where they pray. I know that some are wondering whether the progress we have made at such great cost, and over so many years, is in danger of sliding backwards.

I understand those feelings. I know that as we continue to demand a nation where all people are truly treated equally, we will be met with prejudice, bigotry and condemnation.

It is true that there is nothing foreordained about our march towards a more just and peaceful future. There never has been. Our centuries-long project of creating a more perfect union was not the product of fate, or destiny. It was the result of countless individuals making the choice to stand up, to demand recognition, to refuse to rest until they knew that their children were inheriting a nation that was more tolerant, more inclusive and more equal. That is why it is so fitting that we are here today in this beautiful house of worship, this place of deep and abiding faith. It has been faith that has sustained this fight since the beginning.

Faith – a small band of colonies could separate from the most powerful nation on earth and chart a course of freedom and equality.

Faith – a new nation and its ideas could survive a bloody and divisive civil war that arose from its original sin of slavery. And not just faith – the works that made it so when there was no guarantee of success.

I have been fortunate to have such people in my life. Two of them happen to be faith leaders: my grandfather and my father. They both lived at a time when their country regarded them as less than fully human, simply because of the color of their skin. And they both did their part to make the United States just a little more free and a little more fair. In 1930s North Carolina – where the law offered little protection to people of color – my grandfather used to hide neighbors in trouble under the floorboards of his house. My own father let civil rights activists meet in the basement of his church in Greensboro, North Carolina.

These were acts of enormous courage. But they were also acts of enormous faith and hope. Here were two men living in a country that put obstacles in their path to prevent them from voting; that told them they could only use certain drinking fountains; that told them that when the Declaration of Independence said, “All men are created equal,” it wasn’t referring to them. But they knew what those words meant, and they chose to act accordingly. They knew their portion of fear. They knew their portion of anger. And yet they never lost their hope that although their country was far from perfect, it was certainly capable of perfection. They both risked a great deal for that faith – never knowing if would work out or not – never imagining that the daughter of one and the granddaughter of the other would one day become the chief law enforcement officer of the united states.

My friends, that hope is still alive in our country. You and I know what the declaration means when it says, “All men are created equal.” You and I know what the Constitution means when it says, “We, the people.” So let us leave here united in our confidence, inspired by our faith and strengthened by our courage. Let us leave here with a renewed commitment to demanding nothing less than a country that is true to its founding promises. And let us leave here in hope – the hope that has brought the United States so far in the last 240 years; the hope that I am confident will carry us even further in the days to come.

Will this work be hard? It has always been hard.

Will there be challenges ahead? We have always known that “the price of freedom is constant vigilance.”

Will we persevere? We always do.

Let me recall a song from my faith, made famous by Mahalia Jackson: “Lord, don’t move the mountain, but give me the strength to climb.”

I want to thank you for allowing me to spend a few moments with you today to talk about the country we all love, and the future we all cherish. Thank you for all that you do in your congregations and your communities to vindicate the promise of American life. And let me assure you that long after I leave the Attorney General’s seat, I will continue to stand beside you in the cause of liberty and justice for all. Thank you.

MIL Security OSI –

February 6, 2025
MIL-OSI Security: New Carrollton Man Sentenced to 20 Years in Federal Prison for Kidnapping Minors, Producing Child Sexual Abuse Material

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

Greenbelt, Maryland – On January 31, 2025, U.S. District Judge Deborah L. Boardman sentenced Julian Everett, 41, of New Carrollton, Maryland, to 20 years in federal prison and 20 years of supervised release, for kidnapping minors and producing child sexual abuse material.

Erek L. Barron, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office; Prince George’s County State’s Attorney Aisha N. Braveboy; and Chief Malik Aziz, Prince George’s County Police Department.

According to the guilty plea, in 2005, 2015 and 2016, Everett acknowledged sexually abusing and capturing sexual abuse material of several victims at his New Carrollton home – four were minors.

On July 11, 2005, Everett drove Victim 2 — who was16 at the time — from the Commonwealth of Virginia to his New Carrollton residence. While at his residence, Everett provided Victim 2 with a beverage, before engaging in sexual intercourse without her consent. Everett also took nude photographs of the victim without her consent.

Additionally, on August 23, 2015, Everett drove another victim — who was 18 at the time — from a Washington, D.C. night club to a gas station. While there, Everett created and provided Victim 3 with a beverage before driving her to his New Carrollton residence. Everett then engaged in sexual acts with Victim 3 without her consent.

Then on August 21, 2016, Everett drove Victim 1 — who was then 17 at the time — from her Washington, D.C. residence to a Northwest D.C. barbershop where he worked. While at the barbershop, Everett created and provided Victim 1 with a beverage. Victim 1 drank it and eventually lost consciousness before waking up at Everett’s home while he was performing a sexual act on her. Additionally, Everett recorded the sexual encounter and took naked pictures of the victim without her consent.

Authorities arrested Everett in Prince George’s County on March 21, 2019. Federal law enforcement obtained a search warrant for Everett’s electronic devices, revealing images of child sexual abuse material, including a video of Everett engaging in sexual intercourse with an unidentified fifth female victim. During the video, Victim 5 can be heard mumbling and is physically unresponsive with her eyes closed.

On March 26, 2019, a fourth victim reported a sexual-assault incident to the Prince George’s County Police Department’s Criminal Investigation Division. Between March and April 2015, Everett transported Victim 4 — who was16 at the time — from her Washington D.C. residence to his New Carrollton home. After arriving at his house, Everett mixed a drink for Victim 4 who drank it and became lightheaded. Everett then engaged in multiple sexual acts with Victim 4 without her consent, which he also digitally recorded. He also took nude photos of her.

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

U.S. Attorney Barron commended the FBI, Office of State’s Attorney for Prince George’s County, Maryland, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron also thanked Assistant U.S. Attorneys Timothy Hagan and Thomas Sullivan who prosecuted the federal case.

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

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MIL Security OSI –

February 6, 2025
MIL-OSI Video: DEPUTY PRESIDENT MASHATILE DELIVERS A KEYNOTE ADDRESS AT THE LAUNCH OF SA SOCIAL COHESION INDEX

Source: Republic of South Africa (video statements)

DEPUTY PRESIDENT SHIPOKOSA PAULUS MASHATILE DELIVERING A KEYNOTE ADDRESS AT THE LAUNCH OF THE 2024 SOUTH AFRICAN SOCIAL COHESION INDEX (SASCI), IN WESTERN CAPE.

https://www.youtube.com/watch?v=VUN7r6R4j_Y

MIL OSI Video –

February 6, 2025
MIL-OSI Security: Acting Attorney General Matthew Whitaker Delivers Remarks to the Department of Justice Rural and Tribal Elder Justice Summit
Source: United States Attorneys General 13

Remarks as prepared for delivery

Thank you, Marc for that kind introduction and thank you for your leadership as United States Attorney for the Southern District of Iowa. I think you’ll agree with me that it’s one of the best jobs in the world.

This is a distinguished crowd. Thank you to:
- Iowa Attorney General Tom Miller
- Six U.S. Attorneys: Bryan Schroder, Trent Shores, Ron Parsons, Andrew Murray, Pete Deegan, and Marc Krickbaum
- the head of our Office of Justice Programs and former U.S. Attorney for Northern Iowa, Matt Dummermuth,
- Katie Sullivan, the head of our Office on Violence Against Women,
- Darlene Hutchinson, the Director of our Office for Victims of Crime,
- Assistant Agriculture Secretary Anne Hazlett,
- Assistant Secretary Lance Robertson of HHS,
- SEC Regional Director Joel Levin,
- Postal Inspector Guy Cottrell,
- Acting Commissioner of the Social Security Administration Nancy Berryhill,
- Director Deborah Cox Roush of Senior Corps, and
- A special thanks to all those who made this event possible, especially Toni Bacon, Andy Mao, Kate Peterson, and their teams at the Elder Justice Initiative and the Office for Victims of Crime.
Thank you all for being here for this summit. I think this turnout shows how important these issues are to the Department of Justice and to the Trump administration.

It’s good to be home. Des Moines is my home. This is where I played football, where I practiced law, where I prosecuted criminals as a United States Attorney, and it’s where I’m raising my family.

Iowa shaped my values.

One of those Iowa values is that we respect our elders. We recognize the debt that we owe to our parents and grandparents.

Many seniors in Iowa and across America spent their whole lives working, saving, and sacrificing so that they could enjoy a secure and peaceful retirement. And under President Trump their 401(k)s are looking good.

But criminals can try to take it all away with one phone call, one letter, or even one email.

Each year, an estimated $3 billion are stolen or defrauded from millions of American seniors. Through so-called grandparent scams, fake prizes or even outright extortion, criminals target our seniors to rob them of their hard-earned savings and their peace of mind.

And it appears as though this threat is only growing. The Senate Aging Committee’s Fraud Hotline received twice as many reports in 2016 as it received in 2015.

These fraud schemes can happen to anyone. And so I hope that no one will feel ashamed to come forward and report if they’ve been a victim. Some of my family members here in Iowa have received these phone calls. Some of you have, too.

At the Department of Justice, we acknowledge that rural areas are especially vulnerable to these crimes.

In tightly knit communities like the one I grew up in, people are generous and they develop a sense of trust with one another.

Criminals look at that and they see dollar signs.

Oftentimes local law enforcement in rural communities have to cover large areas of land with only a small number of officers. They don’t have the time or the resources to investigate fraud schemes that are often national or even international in scope.

Fortunately, the Department of Justice has their backs. As President Donald Trump has said, this administration supports state and local law enforcement 100 percent.

In this administration, we are well aware that 85 percent of law enforcement officers in this country serve at the state and local levels. We know that we can’t achieve our goals without them.

Over the past year we have taken historic new action to support our state and local partners and to keep our seniors safe.

This year our U.S. Attorneys’ offices have each designated an elder justice coordinator to help prevent crime by educating seniors about scams and other threats. Over just nine months, our elder justice coordinators participated in nearly 200 training, outreach, and coordination meetings attended by approximately 7,000 people.

Our elder justice coordinators are also customizing our strategy to protect seniors in their district and coordinating our prosecutions with state and local partners. That will help us complete more cases and secure more convictions.

In February, the Department conducted the largest elder fraud enforcement action in American history. We charged more than 200 defendants with fraud against elderly Americans and we brought civil actions against dozens more. The defendants in these cases allegedly stole from more than one million American seniors of more than half a billion dollars.

Just a few weeks ago, the Department extended a deferred prosecution agreement with a financial services company in Dallas. This company allegedly knew about criminals using their services for money laundering, but didn’t do anything about it. Some of their employees even took part in the schemes—including grandparent scams and fake prize scams targeting the elderly. In exchange for avoiding prosecution, the company is forfeiting $125 million which the Department will provide to the victims. The company has also agreed to implement anti-money laundering protections to prevent these crimes from ever happening again.

There are a lot of other cases that we could talk about—but I’ll just mention two right here in Iowa.

This year, a total of 33 defendants in Dubuque—11 at the federal level and 22 at the local level—have been convicted for a grandparent scam against a total of 285 American seniors. The defendants defrauding more than $750,000 and then wiring it to their co-conspirators in the Dominican Republic. Now they’ve been held accountable.

At the federal level, these cases were prosecuted by AUSA Tony Morfitt of our Elder Justice Task Force—Tony, great job.

In August, a jury convicted a man from outside of Des Moines for convincing elderly Iowans to sell off their investments and buy insurance from him. Instead of buying the insurance as promised, the defendant used most of the funds for personal expenses like remodeling his house and buying two new Harley Davidsons. I’m pleased to report that that house and those motorcycles have now been forfeited.

This case was investigated by the FBI and prosecuted by Adam Kerndt and Mikaela Shotwell. Great work.

These are important accomplishments. We have increased the resources dedicated to these cases and we have increased our effectiveness in prosecuting them.

But there is more to do. And so today I am announcing our next steps.

First of all, we are improving training for our U.S. Attorneys’ offices.

Earlier this year the Department’s Elder Justice Initiative published its Elder Abuse Guide for Law Enforcement or EAGLE. EAGLE contains helpful information for prosecutors, including overviews of state and local law as well as best practices for evidence collection, interviewing older adults, and for documenting elder abuse. EAGLE is free and available right now to every law enforcement officer in the country.

Today I am announcing that the next edition of our Journal of Justice Policy and the Law—formerly known as the USA Bulletin—will focus on Elder Justice. It will also be the longest bulletin we’ve ever published since we started it back in 1953. These bulletins are public, and so they can be used by state and local prosecutors as well as our U.S. Attorneys’ offices. That will provide the knowledge and insights of some of the top experts on elder justice to the prosecutors who are on the front lines.

Second, we are investing in services for seniors who have been victimized by criminals.

I am announcing today that over the next 11 months, our Office for Victims of Crime will provide nearly $18 million to help seniors who are victims of crime. These funds can be used for priorities like legal services, telephone hotlines, and housing for seniors who have lost their homes—which is something that happens all too often. We are using these OVC funds for a wider variety of services for seniors than ever before.

And finally, we are continuing to enforce the law aggressively and forcefully.

On October 1st, the Department began our Money Mule Initiative, which is a coordinated effort against the transnational criminal organizations who are defrauding our seniors.

We are hitting the fraudsters where it hurts—in the wallet.

Our prosecutors have found that fraudsters avoid using banks to launder the money they take from their victims. Instead, they launder it through so-called money mules—Americans who collect the money and then send it overseas.

Oftentimes these are co-conspirators—as in the Dubuque case that I mentioned a moment ago. But sometimes they are simply good people who have been tricked into thinking that they are doing charity work or working for a legitimate business.

Working with our Postal Inspectors, FBI agents, and other law enforcement partners, we have identified a number of these money mules across America. We have even been able to determine which ones have been tricked into this work and which ones are knowing and willful conspirators.

In the first case, we knock on their door and we explain to them what’s really going on. We ask them to sign a letter acknowledging that it’s wrong and promising to stop. That in itself is shutting off large quantities of money for the fraudsters.

And in the second case—when we determine that they are part of a conspiracy—we are filing civil actions and taking them to court.

Since October 1, we’ve taken action to stop 400 money mules across 65 districts. These involve everything from grandparent scams to romance scams, fake lotteries, IRS imposters, and fake tech support schemes.

The FBI and our Postal Inspectors have interviewed 300 money mules and sent 300 warning letters. We’ve charged 10 defendants and filed 25 civil actions. We’ve executed search warrants across America, including here in the Southern District of Iowa.

These are impressive numbers.

Our goal is to reduce crime and protect America’s seniors. And we have good reasons to believe that our work with our law enforcement partners is reducing crime and having a real impact on the seniors of this country.

The Postal Inspection Service has estimated that payments by mass mail fraud victims to foreign post office boxes has dropped by 94 percent since 2016—from 150,000 per month to approximately 10,000 per month now.

There are many causes for that, but that is a remarkable achievement—and I want to thank everyone who has played a role in our efforts.

We are going to keep up this pace.

We are going to continue to provide our prosecutors and our state and local partners with the resources that they need. And we’re going to keep putting fraudsters in jail.

I want to thank each of you again for your contribution to this effort. Each of us has a role to play—and certainly not just those of us in government. All of us can be on the lookout for fraud schemes and report suspected criminal activity.

If we do that—and if we remain vigilant—then we can ensure that every senior has the safety and peace of mind that they deserve.

MIL Security OSI –
February 6, 2025

Category: Intelligence Agencies

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