Category: Intelligence Agencies

MIL-OSI USA: Padilla, Schiff, Senate Judiciary Committee Democrats Demand Answers From Trump Administration on Purging of DOJ and FBI Officials

US Senate News:

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

Padilla, Schiff, Senate Judiciary Committee Democrats Demand Answers From Trump Administration on Purging of DOJ and FBI Officials

WASHINGTON, D.C. — Today, U.S. Senators Alex Padilla and Adam Schiff (both D-Calif.) joined U.S. Senate Democratic Whip Dick Durbin (D-Ill.) and all other Senate Judiciary Committee Democrats in demanding answers from Trump Administration nominees and acting officials on the removal or reassignment of career law enforcement officials across the Department of Justice (DOJ) and the Federal Bureau of Investigation (FBI).

Last week, the Trump Administration reportedly purged dozens of DOJ and FBI officials involved in prosecuting Donald Trump and the January 6 rioters, and they are now threatening additional action against thousands of employees across the country who worked on investigations related to the attack on the Capitol. The Senators wrote to Pam Bondi, President Trump’s nominee to be the Attorney General of DOJ; Kash Patel, nominee to be the Director of the FBI; Todd Blanche, nominee to be Deputy Attorney General; Acting Attorney General James McHenry; and Acting FBI Director Brian Driscoll regarding the mass purging.

“We have grave concerns about the removal or reassignment across the Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) of senior career civil servants who have served honorably under multiple administrations, regardless of the President’s party,” wrote the Senators. “The removals and reassignments from their positions of a significant number of experienced, nonpartisan Department officials with invaluable national security expertise without any comparable replacements one day into the second Trump Administration presents an alarming threat to national security.”

“As America faces a heightened threat landscape, these shocking removals and reassignments deprive DOJ and the FBI of experienced, senior leadership and decades of experience fighting violent crime, espionage, and terrorism,” continued the Senators. “As the FBI Agents Association stated in response to reports about the removal of FBI officials: ‘Dismissing potentially hundreds of Agents would severely weaken the Bureau’s ability to protect the country from national security and criminal threats and will ultimately risk setting up the Bureau and its new leadership for failure.’ Moreover, the firing of dozens of federal prosecutors and hundreds of agents will cripple FBI field offices and U.S. Attorney’s offices across the country. We can only assume these decisions are intended to prevent the Department from investigating national security and public corruption, while also serving as political retribution against the President’s perceived enemies and stoking fear among the dedicated and talented workforce in our nation’s premier law enforcement agency.”

As many as 20 senior DOJ officials were reassigned or removed, including the veteran career deputy assistant attorneys general in the Department’s National Security Division.

Over the weekend, thousands of FBI personnel across the country were asked to complete a questionnaire by today, Monday, February 3, at 3 p.m. The survey asks for their job title, whether they worked on a case related to the January 6th attack on the Capitol, “if they were involved in the arrest of a Jan. 6 suspect, if they testified at a trial, if they interviewed witnesses, if they conducted surveillance on suspects and more.” It has also been reported that the Acting FBI Director is being advised by an advisory committee comprised of partisan political operators, including an Elon Musk affiliate. This is a stark departure from the longstanding tradition that the FBI Director is the only political appointee in the Bureau.

The purge of experienced career prosecutors and agents has recently expanded to include the removal or forced retirement of all six executive assistant directors (EADs), including the EADs who oversee the National Security Branch, Intelligence Branch, and the Criminal, Cyber, Response, and Services Branch. It also includes the assistant Directors and the Special Agents in charge of at least four major field offices. Acting Deputy Attorney General Emil Bove ordered these actions in a January 31, 2025 memo, stating, “I do not believe the current leadership of the Justice Department can trust these FBI employees to assist in implementing the President’s agenda faithfully.”

Additionally, over a dozen senior DOJ prosecutors were fired after receiving memos from Acting Attorney General McHenry, stating “Given your significant role in prosecuting the President, I do not believe that the leadership of the Department can trust you to assist in implementing the President’s agenda faithfully.”

The Senators emphasized that the Senate Judiciary Committee has a constitutional obligation to perform oversight over the Department and its components, and to provide advice and consent on the nominations of officers to lead it. To that end, they requested information to be returned to the committee in response to the removal of FBI and DOJ officials. They also requested answers from these individuals about their involvement.

In addition to Senators Padilla, Schiff, and Durbin, the letters were signed by U.S. Senators Richard Blumenthal (D-Conn.), Cory Booker (D-N.J.), Chris Coons (D-Del.), Mazie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.).

Full text of the letter to Attorney General nominee Pam Bondi is available here.

Full text of the letter to FBI Director nominee Kash Patel is available here.

Full text of the letter to Deputy Attorney General nominee Todd Blanche is available here.

Full text of the letter to Acting Attorney General McHenry and Acting FBI Director Driscoll is available here.

MIL OSI USA News –

February 4, 2025
MIL-OSI: Dassault Systèmes and Volkswagen Group Implement the 3DEXPERIENCE Platform to Optimize Vehicle Development
Source: GlobeNewswire (MIL-OSI)

Dassault Systèmes and Volkswagen Group Implement the 3DEXPERIENCE Platform to Optimize Vehicle Development
- Dassault Systèmes’ 3DEXPERIENCE platform on the cloud becomes a foundational technology solution at Volkswagen Group to advance vehicle development
  - Virtual twin experiences reduce engineering and manufacturing cycles of complex automotive systems, streamline workflows, optimize resources and accelerate time-to-market
VELIZY-VILLACOUBLAY, France — February 4, 2025 — Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) and Volkswagen Group today announced a long-term partnership to advance Volkswagen Group’s digital infrastructure for state-of-the-art vehicle development by implementing Dassault Systèmes’ 3DEXPERIENCE platform.

Volkswagen Group has chosen the 3DEXPERIENCE platform on the cloud as a main engineering and manufacturing platform. Engineers, designers and other professionals across the Volkswagen, Audi and Porsche brands will use virtual twins to streamline the development of vehicles. This will enable teams to simulate, test and refine every aspect of vehicle development in a collaborative virtual environment before physical production begins, while ensuring compliance with global regulations and sustainability standards.

“We are advancing the development of our next-generation IT system landscape, and the decision to partner with Dassault Systèmes marks an important milestone,” said Hauke Stars, Board Member at Volkswagen Group for IT. “With consistent data streams and AI solutions built on them, we are creating a true technological leap for our teams in development and factory planning. At the same time, we are sustainably reducing IT costs and accelerating processes by streamlining our system complexity and utilizing virtual twins.”

“Industry evolutions in the context of the Generative Economy are compelling automotive companies to make transformative decisions that will propel the vehicle experience to new heights,” said Pascal Daloz, CEO, Dassault Systèmes. “After four decades of partnership rooted in innovation and trust, we’re now embarking on the next chapter with Volkswagen Group with the 3DEXPERIENCE platform at its core. Our AI-powered virtual twins and the strength and resilience of the cloud will unify Volkswagen Group’s hardware and software innovation and unleash the knowledge and know-how to accelerate its software-driven transformation.”

Volkswagen Group will rely on four Dassault Systèmes industry solution experiences based on the 3DEXPERIENCE platform: “Global Modular Architecture,” “Smart, Safe and Connected,” “Efficient Multi-Energy Platform,” and “On-Target Vehicle Launch.”

Social media:

Connect with Dassault Systèmes on Facebook LinkedIn YouTube

For more information:

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

###

About Dassault Systèmes
Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens. With Dassault Systèmes’ 3DEXPERIENCE platform, 350,000 customers of all sizes, in all industries, can collaborate, imagine and create sustainable innovations that drive meaningful impact. For more information, visit: www.3ds.com

About Volkswagen Group
The Volkswagen Group is one of the world’s leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 114 production facilities in 17 European countries and 10 countries in the Americas, Asia and Africa. With around 684,000 employees worldwide. The Group’s vehicles are sold in over 150 countries.
With an unrivalled portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability.
In 2023, the total number of vehicles delivered to customers by the Group globally was 9.2 million (2022: 8.3 million). Group sales revenue in 2023 totaled EUR 322.3 billion (2022: EUR 279.1 billion). The operating result before special items in 2023 amounted to EUR 22.6 billion (2022: EUR 22.5 billion).

Dassault Systèmes Press Contacts
Corporate / France        Arnaud MALHERBE        arnaud.malherbe@3ds.com        +33 (0)1 61 62 87 73
North America        Natasha LEVANTI        natasha.levanti@3ds.com        +1 (508) 449 8097
EMEA        Virginie BLINDENBERG        virginie.blindenberg@3ds.com        +33 (0) 1 61 62 84 21
China        Grace MU        grace.mu@3ds.com        +86 10 6536 2288
Japan        Reina YAMAGUCHI        reina.yamaguchi@3ds.com        +81 90 9325 2545
Korea        Jeemin JEONG        jeemin.jeong@3ds.com        +82 2 3271 6653
India        Priyanka PANDEY        priyanka.pandey@3ds.com        +91 9886302179

Volkswagen Group Press Contact
Global        Jonas KULAWIK        jonas.alexander.kulawik@volkswagen.de

Attachment
- Dassault Systèmes and Volkswagen Group Implement the 3DEXPERIENCE Platform to Optimize Vehicle Development
The MIL Network –
February 4, 2025

MIL-OSI: Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint

Source: GlobeNewswire (MIL-OSI)

Press Release

VELIZY-VILLACOUBLAY, France — February 4, 2025

Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint

Dassault Systèmes (Euronext Paris: FR0014003TT8, DSY.PA) today reports its IFRS unaudited estimated financial results for the fourth quarter 2024 and full year ended December 31, 2024. The Group’s Board of Directors approved these estimated results on February 3, 2025. This press release also includes financial information on a non-IFRS basis and reconciliations with IFRS figures in the Appendix.

Summary Highlights¹

(unaudited, non-IFRS unless otherwise noted,
all growth rates in constant currencies)

4Q24: Software revenue accelerated to 9% growth;
4Q24: Top line acceleration driven by new business growth of 13% and 3DEXPERIENCE software revenue up 22%;
4Q24: Operating margin stood at 36.3%, an increase of 70 basis points, with diluted EPS of €0.40, up 11%;
FY24: Total revenue grew to €6.21 billion with software revenue up 6%, operating margin of 31.9% and diluted EPS of €1.28, up 9%;
Initiating guidance for FY25: total revenue growth expected between 6% and 8%, operating margin between 32.6% and 32.9%, up 70-100 basis points, and diluted EPS of €1.36-€1.39;
Revealing 3D UNIV+RSES and their AI-based services.

Dassault Systèmes’ Chief Executive Officer Commentary

Pascal Daloz, Dassault Systèmes’ Chief Executive Officer, commented:

“2024 has been a year of competitive success, driven by the expansion of 3DEXPERIENCE across industries, domains and geographies, and redefining our strategic partnerships with industry leaders such as Volkswagen, Lockheed Martin, Mahindra & Mahindra, Airbus, and Bristol-Myers Squibb.

Key to this success is the relevance of 3DEXPERIENCE combining deep industry knowledge and know-how to help customers enhance their value propositions and empower their teams. This will nurture our future growth and build the foundation for broad cloud adoption.

Building on this strong foundation, we are excited to announce a new era for Dassault Systèmes. We are fully committed to creating UNIV+RSES, a combination of multiple virtual twins, integrating artificial intelligence to connect virtual and real, across all industry solutions. This will unlock new opportunities for our clients and position us as the trusted Global IP Generation and Management Company.”

Dassault Systèmes’ Chief Financial Officer Commentary

(revenue, operating margin and diluted EPS (‘EPS’) growth rates in constant currencies,
data on a non-IFRS basis)

Rouven Bergmann, Dassault Systèmes’ Chief Financial Officer, commented:

“We delivered a strong Q4 in the context of a challenging year, with total revenue up 7%, driven by new business growth of 13% in the quarter. From a product line perspective, this performance was led by Industrial Innovation, up 8%, as a result of the wider adoption of 3DEXPERIENCE, with a focus on manufacturing. At the same time, we saw continued excellent performance in Mainstream Innovation while in Life Sciences, MEDIDATA returned to growth.

Turning to the bottom line, profitability improved in the quarter with an operating margin of 36.3%, up 70 basis points driven by productivity gains, and EPS increased by a strong 11%.

For 2024, software revenue growth was 6% and EPS grew by 9%. Operating cash flow came in at €1.66 billion resulting in a net cash position of €1.46 billion, highlighting our capacity for future investments.

Looking ahead, we are confident in our growth outlook and competitive positioning.

As such, for 2025 we anticipate total revenue growth between 6% and 8%, operating margin expansion of 70-100 basis points and EPS up 7% to 10%.

Lastly, we are delighted to hold our Capital Markets Day this coming June, at our headquarters in Paris where it will be the opportunity to discuss our vision for the next horizon.”

Financial Summary

In millions of Euros, except per share data and percentages	IFRS				IFRS
In millions of Euros, except per share data and percentages	Q4 2024	Q4 2023	Change	Change in constant currencies	YTD 2024	YTD 2023	Change	Change in constant currencies
Total Revenue	1,754.2	1,643.4	7%	7%	6,213.6	5,951.4	4%	5%
Software Revenue	1,601.5	1,476.1	8%	9%	5,613.3	5,360.0	5%	6%
Operating Margin	27.6%	23.2%	+4.3pts		21.9%	20.9%	+1.0pt
Diluted EPS	0.30	0.25	20%		0.90	0.79	14%

In millions of Euros, except per share data and percentages	Non-IFRS				Non-IFRS
In millions of Euros, except per share data and percentages	Q4 2024	Q4 2023	Change	Change in constant currencies	YTD 2024	YTD 2023	Change	Change in constant currencies
Total Revenue	1,754.2	1,643.4	7%	7%	6,213.6	5,951.4	4%	5%
Software Revenue	1,601.5	1,476.1	8%	9%	5,613.3	5,360.0	5%	6%
Operating Margin	36.3%	35.9%	+0.4pt		31.9%	32.4%	(0.4)pt
Diluted EPS	0.40	0.36	9%	11%	1.28	1.20	7%	9%

Fourth Quarter 2024 Versus 2023 Financial Comparisons

(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

Total Revenue: Total revenue in the fourth quarter grew by 7% to €1.75 billion, and software revenue increased by 9% to €1.60 billion. Subscription & support revenue rose 7%; recurring revenue represented 75% of software revenue. Licenses and other software revenue increased by 15% to €405 million. Services revenue was down 9% to €153 million, during the quarter.
Software Revenue by Geography: Revenue in the Americas increased by 5% to represent 37% of software revenue, led by Aerospace & Defense. Europe (43% of software revenue) grew by 14%, thanks to large deals closed in Aerospace & Defense and Home & Lifestyle. In Asia, revenue increased by 7%, led by Japan and India, while China remained volatile. Asia represented 20% of software revenue at the end of the fourth quarter.
Software Revenue by Product Line:
- Industrial Innovation software revenue increased by 8% to €902 million, driven by strong momentum with 3DEXPERIENCE wins and many strategic competitive displacements, led by DELMIA in manufacturing. Industrial Innovation software represented 56% of software revenue.
- Life Sciences software revenue was flat, at €298 million, accounting for 19% of software revenue. MEDIDATA returned to growth, up 1% in the quarter, highlighting progressive improvement.
- Mainstream Innovation software revenue increased by 17% to €402 million, with SOLIDWORKS achieving its best quarter since 2022 and CENTRIC PLM maintaining strong momentum. Mainstream Innovation represented 25% of software revenue, during the period.

Software Revenue by Industry: Aerospace & Defense, Home & Lifestyle and Industrial Equipment were among the best performers during the quarter.
Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 22% thanks to major deals signings in Aerospace & Defense and Transport & Mobility. 3DEXPERIENCE software revenue represented 46% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 6% and represented 22% of software revenue during the period. Excluding MEDIDATA, Cloud software revenue increased by 19%.
Operating Income and Margin: IFRS operating income rose by 27% at €483 million, as reported. Non-IFRS operating income increased by 9% in constant currencies at €637 million (up 8% as reported). The IFRS operating margin stood at 27.6% compared to 23.2% in the fourth quarter of 2023. The non-IFRS operating margin totaled 36.3% versus 35.9% during the same period last year, up 70 basis points in constant currencies.
Earnings per Share: IFRS diluted EPS was €0.30, up 20% as reported. Non-IFRS diluted EPS grew to €0.40, up 9% as reported, or 11% in constant currencies.

Fiscal 2024 Versus 2023 Financial Comparisons

(unaudited, IFRS and non-IFRS unless otherwise noted,
all revenue growth rates in constant currencies)

Total Revenue: Total revenue grew by 5% to €6.21 billion. Software revenue increased by 6% to €5.61 billion. Subscription and support revenue rose to €4.49 billion up 6%; recurring revenue represented 80% of total software revenue. Licenses and other software revenue grew by 4% to €1.13 billion. Services revenue came at €600 million, up 2%.
Software Revenue by Geography: The Americas increased by 4% and represented 39% of software revenue. Europe rose by 6% and represented 38% of software revenue. Asia grew by 9%, representing 22% of software revenue.
Software Revenue by Product Line:
- Industrial Innovation software revenue was up 5% to €3.02 billion and represented 54% of software revenue. DELMIA, ENOVIA and SIMULIA exhibited the strongest performance.

Life Sciences software revenue decreased by 1% to €1.14 billion, representing 20% of software revenue.
Mainstream Innovation software revenue increased by 13% to €1.45 billion. Mainstream Innovation represented 26% of software revenue.

Software Revenue by Industry: Home & Lifestyle, Aerospace and Defense, High-Tech and Industrial equipment displayed some of the strongest performance.
Key Strategic Drivers: 3DEXPERIENCE software revenue increased by 14%, representing 39% of 3DEXPERIENCE eligible software revenue. Cloud software revenue grew by 7% and represented 24% of software revenue. Excluding MEDIDATA, Cloud software revenue increased by more than 40% versus last year.
Operating Income and Margin: IFRS operating income increased by 9% to €1.36 billion, as reported. Non-IFRS operating income increased by 3% as reported, up 4% in constant currencies, to €1.98 billion. IFRS operating margin totaled 21.9% compared to 20.9% in 2023. The non-IFRS operating margin stood at 31.9% in 2024 compared to 32.4% last year.
Earnings per Share: IFRS diluted EPS was up 14% as reported, to €0.90. Non-IFRS diluted EPS grew by 7% to €1.28, as reported, up 9% in constant currencies.
Cash Flow from Operations (IFRS): Cash flow from operations totaled €1.66 billion, up 6% year over year at reported rate with strong cash conversion and good cash collection, offset by receivables up on higher business activity in the fourth quarter.
Balance Sheet (IFRS): Dassault Systèmes had a net cash position of €1.46 billion as of December 31, 2024, an increase of €0.88 billion, compared to €0.58 billion for the year ending December 31, 2023. Cash and cash equivalents totaled €3.95 billion at the end of December 2024. The movements of the year on cash and cash equivalents include the reimbursement for €700 million of the second tranche of the bond issued by the company in 2019.

Financial Objectives for 2025

Dassault Systèmes’ first quarter and 2025 financial objectives presented below are given on a non-IFRS basis and reflect the principal 2025 currency exchange rate assumptions for the US dollar and Japanese yen as well as the potential impact from additional non-Euro currencies:


		Q1 2025	FY 2025
Total Revenue (billion)		€1.535 – €1.601	€6.550 – €6.650
Growth		2 – 7%	5 – 7%
Growth ex FX		3 – 8%	6 – 8%

Software revenue growth *		3 – 8%	6 – 8%
	Of which licenses and other software revenue growth *	0 – 9%	3 – 5%
	Of which recurring revenue growth *	4 – 8%	7 – 9%
Services revenue growth *		0 – 4%	3 – 6%

Operating Margin		31.0% – 31.1%	32.6% – 32.9%

EPS Diluted		€0.30 – €0.32	€1.36 – €1.39
Growth		2 – 6%	6 – 8%
Growth ex FX		3 – 7%	7 – 10%

US dollar		$1.10 per Euro	$1.10 per Euro
Japanese yen (before hedging)		JPY 155.0 per Euro	JPY 155.0 per Euro
* Growth in Constant Currencies

These objectives are prepared and communicated only on a non-IFRS basis and are subject to the cautionary statement set forth below.

The 2025 non-IFRS financial objectives set forth above do not take into account the following accounting elements below and are estimated based upon the 2025 principal currency exchange rates above: no significant contract liabilities write-downs; share-based compensation expenses, including related social charges, estimated at approximately €161 million (these estimates do not include any new stock option or share grants issued after December 31, 2024); amortization of acquired intangibles and of tangibles reevaluation, estimated at approximately €336 million, largely impacted by the acquisition of MEDIDATA; and lease incentives of acquired companies at approximately €2 million.

The above objectives also do not include any impact from other operating income and expenses, a net principally comprised of acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; from one-time items included in financial revenue; from one-time tax effects; and from the income tax effects of these non-IFRS adjustments. Finally, these estimates do not include any new acquisitions or restructuring completed after December 31, 2024.

Corporate Announcements

Today’s Webcast and Conference Call Information

Today, Tuesday, February 4, 2025, Dassault Systèmes will host, from Paris, a webcasted presentation at 9:00 AM London Time / 10:00 AM Paris time, and will then host a conference call at 8:30 AM New York time / 1:30 PM London time / 2:30 PM Paris time. The webcasted presentation and conference calls will be available online by accessing investor.3ds.com.

Additional investor information is available at investor.3ds.com or by calling Dassault Systèmes’ Investor Relations at +33.1.61.62.69.24.

Investor Relations Events

First Quarter 2025 Earnings Release: April 24, 2025
Second Quarter 2025 Earnings Release: July 24, 2025
Third Quarter 2025 Earnings Release: October 23, 2025

Forward-looking Information

Statements herein that are not historical facts but express expectations or objectives for the future, including but not limited to statements regarding the Group’s non-IFRS financial performance objectives are forward-looking statements. Such forward-looking statements are based on Dassault Systèmes management’s current views and assumptions and involve known and unknown risks and uncertainties. Actual results or performances may differ materially from those in such statements due to a range of factors.

The Group’s actual results or performance may be materially negatively affected by numerous risks and uncertainties, as described in the “Risk Factors” section 1.9 of the 2023 Universal Registration Document (‘Document d’enregistrement universel’) filed with the AMF (French Financial Markets Authority) on March 18, 2024, available on the Group’s website www.3ds.com.

In particular, please refer to the risk factor “Uncertain Global Economic Environment” in section 1.9.1.1 of the 2023 Universal Registration Document set out below for ease of reference:

“In light of the uncertainties regarding economic, business, social, health and geopolitical conditions at the global level, Dassault Systèmes’ revenue, net earnings and cash flows may grow more slowly, whether on an annual or quarterly basis, mainly due to the following factors:

the deployment of Dassault Systèmes’ solutions may represent a large portion of a customer’s investments in software technology. Decisions to make such an investment are impacted by the economic environment in which the customers operate. Uncertain global geopolitical, economic and health conditions and the lack of visibility or the lack of financial resources may cause some customers, e.g. within the automotive, aerospace, energy or natural resources industries, to reduce, postpone or terminate their investments, or to reduce or not renew ongoing paid maintenance for their installed base, which impact larger customers’ revenue with their respective sub-contractors;
the political, economic and monetary situation in certain geographic regions where Dassault Systèmes operates could become more volatile and impact Dassault Systèmes’ business, for example, due to stricter export compliance rules or the introduction of new customs tariffs;
continued pressure or volatility on raw materials and energy prices could also slow down Dassault Systèmes’ diversification efforts in new industries;
uncertainties regarding the extent and duration of inflation could adversely affect the financial position of Dassault Systèmes; and
the sales cycle of Dassault Systèmes’ products – already relatively long due to the strategic nature of such investments for customers – could further lengthen.

The occurrence of crises – health and political in particular – could have consequences both for the health and safety of Dassault Systèmes’ employees and for the Company. It could also adversely impact the financial situation or financing and supply capabilities of Dassault Systèmes’ existing and potential customers, commercial and technology partners, some of whom may be forced to temporarily close sites or cease operations. A deteriorating economic environment could generate increased price pressure and affect the collection of receivables, which would negatively impact Dassault Systèmes’ revenue, financial performance and market position.

Dassault Systèmes makes every effort to take into consideration this uncertain macroeconomic outlook. Dassault Systèmes’ business results, however, may not develop as anticipated. Furthermore, due to factors affecting sales of Dassault Systèmes’ products and services, there may be a substantial time lag between an improvement in global economic and business conditions and an upswing in the Company’s business results.

In preparing such forward-looking statements, the Group has in particular assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the first quarter 2025. The Group has assumed an average US dollar to euro exchange rate of US$1.10 per €1.00 as well as an average Japanese yen to euro exchange rate of JPY155.0 to €1.00, before hedging for the full year 2025. However, currency values fluctuate, and the Group’s results may be significantly affected by changes in exchange rates.

Non-IFRS Financial Information

Readers are cautioned that the supplemental non-IFRS financial information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered in isolation from or as a substitute for IFRS measurements. The supplemental non-IFRS financial information should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with IFRS. Furthermore, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Specific limitations for individual non-IFRS measures are set forth in the Company’s 2024 Universal Registration Document filed with the AMF on March 18, 2024.

In the tables accompanying this press release the Group sets forth its supplemental non-IFRS figures for revenue, operating income, operating margin, net income and diluted earnings per share, which exclude the effect of adjusting the carrying value of acquired companies’ deferred revenue, share-based compensation expense and related social charges, the amortization of acquired intangible assets and of tangibles reevaluation, certain other operating income and expense, net, including impairment of goodwill and acquired intangibles, the effect of adjusting lease incentives of acquired companies, certain one-time items included in financial revenue and other, net, and the income tax effect of the non-IFRS adjustments and certain one-time tax effects. The tables also set forth the most comparable IFRS financial measure and reconciliations of this information with non-IFRS information.

FOR MORE INFORMATION

Dassault Systèmes’ 3DEXPERIENCE platform, 3D design software, 3D Digital Mock Up and Product Lifecycle Management (PLM) solutions: http://www.3ds.com

ABOUT DASSAULT SYSTÈMES

Dassault Systèmes is a catalyst for human progress. Since 1981, the company has pioneered virtual worlds to improve real life for consumers, patients and citizens. With Dassault Systèmes’ 3DEXPERIENCE platform, 350,000 customers of all sizes, in all industries, can collaborate, imagine and create sustainable innovations that drive meaningful impact. For more information, visit www.3ds.com

Dassault Systèmes Investor Relations Team FTI Consulting

Beatrix Martinez: +33 1 61 62 40 73 Arnaud de Cheffontaines: +33 1 47 03 69 48

Jamie Ricketts : +44 20 3727 1600

investors@3ds.com

Dassault Systèmes Press Contacts

Corporate / France Arnaud MALHERBE

arnaud.malherbe@3ds.com

+33 (0)1 61 62 87 73

© Dassault Systèmes. All rights reserved. 3DEXPERIENCE, the 3DS logo, the Compass icon, IFWE, 3DEXCITE, 3DVIA, BIOVIA, CATIA, CENTRIC PLM, DELMIA, ENOVIA, GEOVIA, MEDIDATA, NETVIBES, OUTSCALE, SIMULIA and SOLIDWORKS are commercial trademarks or registered trademarks of Dassault Systèmes, a European company (Societas Europaea) incorporated under French law, and registered with the Versailles trade and companies registry under number 322 306 440, or its subsidiaries in the United States and/or other countries. All other trademarks are owned by their respective owners. Use of any Dassault Systèmes or its subsidiaries trademarks is subject to their express written approval.

APPENDIX TABLE OF CONTENTS

Due to rounding, numbers presented throughout this and other documents may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

Glossary of Definitions

Non-IFRS Financial Information

Acquisitions and Foreign Exchange Impact

Condensed consolidated statements of income

Condensed consolidated balance sheet

Condensed consolidated cash flow statement

IFRS – non-IFRS reconciliation

DASSAULT SYSTÈMES – Glossary of Definitions

Information in Constant Currencies

Dassault Systèmes has followed a long-standing policy of measuring its revenue performance and setting its revenue objectives exclusive of currency in order to measure in a transparent manner the underlying level of improvement in its total revenue and software revenue by activity, industry, geography and product lines. The Group believes it is helpful to evaluate its growth exclusive of currency impacts, particularly to help understand revenue trends in its business. Therefore, the Group provides percentage increases or decreases in its revenue and expenses (in both IFRS as well as non-IFRS) to eliminate the effect of changes in currency values, particularly the U.S. dollar and the Japanese yen, relative to the euro. When trend information is expressed “in constant currencies”, the results of the “prior” period have first been recalculated using the average exchange rates of the comparable period in the current year, and then compared with the results of the comparable period in the current year.

While constant currency calculations are not considered to be an IFRS measure, the Group believes these measures are critical to understanding its global revenue results and to compare with many of its competitors who report their financial results in U.S. dollars. Therefore, Dassault Systèmes includes this calculation for comparing IFRS revenue figures as well non-IFRS revenue figures for comparable periods. All information at constant exchange rates is expressed as a rounded percentage and therefore may not precisely reflect the absolute figures.

Information on Growth excluding acquisitions (“organic growth”)

In addition to financial indicators on the entire Group’s scope, Dassault Systèmes provides growth excluding acquisitions effect, also named organic growth. In order to do so, the data relating to the scope is restated excluding acquisitions, from the date of the transaction, over a period of 12 months.

Information on Industrial Sectors

The Group provides broad end-to-end software solutions and services: its platform-based virtual twin experiences combine modeling, simulation, data science and collaborative innovation to support companies in the three sectors it serves, namely Manufacturing Industries, Life Sciences & Healthcare, and Infrastructure & Cities.

These three sectors comprise twelve industries:

Manufacturing Industries: Transportation & Mobility; Aerospace & Defense; Marine & Offshore; Industrial Equipment; High-Tech; Home & Lifestyle; Consumer Packaged Goods – Retail. In Manufacturing Industries, Dassault Systèmes helps customers virtualize their operations, improve data sharing and collaboration across their organization, reduce costs and time-to-market, and become more sustainable;
Life Sciences & Healthcare: Life Sciences & Healthcare. In this sector, the Group aims to address the entire cycle of the patient journey to lead the way toward precision medicine. To reach the broader healthcare ecosystem from research to commercial, the Group’s solutions connect all elements from molecule development to prevention to care, and combine new therapeutics, med practices, and Medtech;
Infrastructure & Cities: Infrastructure, Energy & Materials; Architecture, Engineering & Construction; Business Services; Cities & Public Services. In Infrastructure & Cities, the Group supports the virtualization of the sector in making its industries more efficient and sustainable, and creating desirable living environments.

Information on Product Lines

The Group’s product lines financial reporting include the following financial information:

Industrial Innovation software revenue, which includes CATIA, ENOVIA, SIMULIA, DELMIA, GEOVIA, NETVIBES, and 3DEXCITE brands;
Life Sciences software revenue, which includes MEDIDATA and BIOVIA brands;
Mainstream Innovation software revenue which includes its CENTRIC PLM and 3DVIA brands, as well as its 3DEXPERIENCE WORKS family which includes the SOLIDWORKS brand.

Starting from 2022, OUTSCALE became a brand of the Group, extending the portfolio of software applications. As the first sovereign and sustainable operator on the cloud, OUTSCALE enables governments and corporations from all sectors to achieve digital autonomy through a Cloud experience and with a world-class cyber governance.

GEOs

Eleven GEOs are responsible for driving development of the Company’s business and implementing its customer‑centric engagement model. Teams leverage strong networks of local customers, users, partners, and influencers.

These GEOs are structured into three groups:

the “Americas” group, made of two GEO’s;
the “Europe” group, comprising Europe, Middle East and Africa (EMEA) and made of four GEO’s;
the “Asia” group, comprising Asia and Oceania and made of five GEO’s.

3DEXPERIENCE Software Contribution

To measure the relative share of 3DEXPERIENCE software in its revenues, Dassault Systèmes uses the following ratio: for software revenue, the Group calculates the percentage contribution by comparing total 3DEXPERIENCE software revenue to software revenue for all product lines except SOLIDWORKS, MEDIDATA, CENTRIC PLM and other acquisitions (defined as “3DEXPERIENCE Eligible software revenue”).

Cloud revenue

Cloud revenues correspond to revenue generated through a catalog of cloud-based solutions, infrastructure as a service, cloud solution development and cloud managed services. They are delivered by Dassault Systèmes via a cloud infrastructure hosted by Dassault Systèmes, or by third party providers of cloud computing infrastructure services. These offerings are available through different deployment methods: Dedicated cloud, Sovereign cloud and International cloud. Cloud solutions are generally offered through subscriptions models or perpetual licenses with support and hosting services.

New business

New business is the combination of subscription revenue and licenses & other software revenue.

DASSAULT SYSTÈMES

NON-IFRS FINANCIAL INFORMATION

(unaudited; in millions of Euros, except per share data, percentages, headcount and exchange rates)

Non-IFRS key figures exclude the effects of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue), share-based compensation expense, including related social charges, amortization of acquired intangible assets and of tangible assets revaluation, lease incentives of acquired companies, other operating income and expense, net, including the acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets, certain one-time items included in financial loss, net, certain one-time tax effects and the income tax effects of these non-IFRS adjustments.

Comparable IFRS financial information and a reconciliation of the IFRS and non-IFRS measures are set forth in the separate tables within this Attachment.

In millions of Euros, except per share data, percentages, headcount and exchange rates	Non-IFRS reported
	Three months ended				Twelve months ended
	December 31, 2024	December 31, 2023	Change	Change in constant currencies	December 31, 2024	December 31, 2023	Change	Change in constant currencies
Total Revenue	€ 1,754.2	€ 1,643.4	7%	7%	€ 6,213.6	€ 5,951.4	4%	5%

Revenue breakdown by activity
Software revenue	1,601.5	1,476.1	8%	9%	5,613.3	5,360.0	5%	6%
Of which licenses and other software revenue	405.4	351.9	15%	15%	1,125.2	1,087.6	3%	4%
Of which subscription and support revenue	1,196.1	1,124.3	6%	7%	4,488.1	4,272.4	5%	6%
Services revenue	152.8	167.3	(9)%	(9)%	600.3	591.4	2%	2%

Software revenue breakdown by product line
Industrial Innovation	901.8	837.3	8%	8%	3,019.6	2,908.0	4%	5%
Life Sciences	297.7	295.1	1%	0%	1,144.2	1,158.9	(1)%	(1)%
Mainstream Innovation	402.0	343.7	17%	17%	1,449.4	1,293.2	12%	13%

Software Revenue breakdown by geography
Americas	595.0	566.7	5%	5%	2,214.7	2,141.9	3%	4%
Europe	685.0	601.1	14%	14%	2,150.4	2,027.3	6%	6%
Asia	321.4	308.4	4%	7%	1,248.1	1,190.8	5%	9%

Operating income	€ 636.8	€ 589.8	8%		€ 1,983.7	€ 1,925.6	3%
Operating margin	36.3%	35.9%			31.9%	32.4%

Net income attributable to shareholders	€ 530.7	€ 487.2	9%		€ 1,705.1	€ 1,597.9	7%
Diluted earnings per share	€ 0.40	€ 0.36	9%	11%	€ 1.28	€ 1.20	7%	9%

Closing headcount	26,026	25,573	2%		26,026	25,573	2%

Average Rate USD per Euro	1.07	1.08	(1)%		1.08	1.08	0%
Average Rate JPY per Euro	162.55	159.12	2%		163.85	151.99	8%

DASSAULT SYSTÈMES

ACQUISITIONS AND FOREIGN EXCHANGE IMPACT

(unaudited; in millions of Euros)

In millions of Euros	Non-IFRS reported			o/w growth at constant rate and scope	o/w change of scope impact at current year rate	o/w FX impact on previous year figures
In millions of Euros	December 31, 2024	December 31, 2023	Change	o/w growth at constant rate and scope	o/w change of scope impact at current year rate	o/w FX impact on previous year figures
Revenue QTD	1,754.2	1,643.4	110.9	111.8	0.6	(1.6)
Revenue YTD	6,213.6	5,951.4	262.2	302.0	2.2	(42.0)

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited; in millions of Euros, except per share data and percentages)

In millions of Euros, except per share data and percentages	IFRS reported
	Three months ended		Twelve months ended
	December 31,	December 31,	December 31,	December 31,
	2024	2023	2024	2023
Licenses and other software revenue	405.4	351.9	1,125.2	1,087.6
Subscription and Support revenue	1,196.1	1,124.3	4,488.1	4,272.4
Software revenue	1,601.5	1,476.1	5,613.3	5,360.0
Services revenue	152.8	167.3	600.3	591.4
Total Revenue	€ 1,754.2	€ 1,643.4	€ 6,213.6	€ 5,951.4
Cost of software revenue ⁽¹⁾	(134.1)	(124.9)	(498.5)	(453.9)
Cost of services revenue	(132.7)	(131.0)	(517.8)	(517.1)
Research and development expenses	(327.7)	(317.5)	(1,286.2)	(1,228.3)
Marketing and sales expenses	(456.6)	(429.3)	(1,704.3)	(1,624.5)
General and administrative expenses	(136.4)	(124.8)	(470.5)	(450.6)
Amortization of acquired intangible assets and of tangible assets revaluation	(87.5)	(94.9)	(361.6)	(378.9)
Other operating income and expense, net	4.2	(39.5)	(15.0)	(56.2)
Total Operating Expenses	(1,270.9)	(1,261.8)	(4,854.0)	(4,709.5)
Operating Income	€ 483.4	€ 381.6	€ 1,359.6	€ 1,241.9
Financial income (loss), net	22.9	27.8	118.4	59.0
Income before income taxes	€ 506.3	€ 409.4	€ 1,478.0	€ 1,300.9
Income tax expense	(95.4)	(79.1)	(279.9)	(250.7)
Net Income	€ 410.9	€ 330.3	€ 1,198.1	€ 1,050.2
Non-controlling interest	1.1	(0.3)	2.1	0.7
Net Income attributable to equity holders of the parent	€ 412.0	€ 330.0	€ 1,200.2	€ 1,050.9
Basic earnings per share	0.31	0.25	0.91	0.80
Diluted earnings per share	€ 0.30	€ 0.25	€ 0.90	€ 0.79
Basic weighted average shares outstanding (in millions)	1,312.7	1,314.1	1,313.3	1,315.1
Diluted weighted average shares outstanding (in millions)	1,330.0	1,336.6	1,333.4	1,336.8

⁽¹⁾ Excluding amortization of acquired intangible assets and of tangible assets revaluation.

IFRS reported	Three months ended December 31, 2024		Twelve months ended December 31, 2024
IFRS reported	Change ⁽²⁾	Change in constant currencies	Change ⁽²⁾	Change in constant currencies
Total Revenue	7%	7%	4%	5%
Revenue by activity
Software revenue	8%	9%	5%	6%
Services revenue	(9)%	(9)%	2%	2%
Software Revenue by product line
Industrial Innovation	8%	8%	4%	5%
Life Sciences	1%	0%	(1)%	(1)%
Mainstream Innovation	17%	17%	12%	13%
Software Revenue by geography
Americas	5%	5%	3%	4%
Europe	14%	14%	6%	6%
Asia	4%	7%	5%	9%

⁽²⁾ Variation compared to the same period in the prior year.

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED BALANCE SHEET

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	December 31,	December 31,
	2024	2023
ASSETS
Cash and cash equivalents	3,952.6	3,568.3
Trade accounts receivable, net	2,120.9	1,707.9
Contract assets	30.1	26.8
Other current assets	464.0	477.1
Total current assets	6,567.6	5,780.1
Property and equipment, net	945.8	882.8
Goodwill and Intangible assets, net	7,687.1	7,647.0
Other non-current assets	345.5	312.5
Total non-current assets	8,978.3	8,842.3
Total Assets	€ 15,545.9	€ 14,622.5
LIABILITIES
Trade accounts payable	259.9	230.5
Contract liabilities	1,663.4	1,479.3
Borrowings, current	450.8	950.1
Other current liabilities	1,147.4	901.0
Total current liabilities	3,521.5	3,561.0
Borrowings, non-current	2,042.8	2,040.6
Other non-current liabilities	900.9	1,174.8
Total non-current liabilities	2,943.7	3,215.4
Non-controlling interests	14.1	11.9
Parent shareholders’ equity	9,066.6	7,834.1
Total Liabilities	€ 15,545.9	€ 14,622.5

DASSAULT SYSTÈMES

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

(unaudited; in millions of Euros)

In millions of Euros	IFRS reported
	Three months ended			Twelve months ended
	December 31,	December 31,	Change	December 31,	December 31,	Change
	2024	2023	Change	2024	2023	Change
Net income attributable to equity holders of the parent	412.0	330.0	82.0	1,200.2	1,050.9	149.3
Non-controlling interest	(1.1)	0.3	(1.4)	(2.1)	(0.7)	(1.4)
Net income	410.9	330.3	80.6	1,198.1	1,050.2	147.9
Depreciation of property and equipment	49.7	44.0	5.7	191.9	182.4	9.4
Amortization of intangible assets	89.4	96.8	(7.4)	369.1	387.1	(18.0)
Adjustments for other non-cash items	(75.9)	(48.8)	(27.0)	37.7	74.7	(37.0)
Changes in working capital	(162.1)	(128.8)	(33.3)	(137.0)	(129.2)	(7.7)
Net Cash From Operating Activities	€ 312.0	€ 293.4	€ 18.6	€ 1,659.8	€ 1,565.2	€ 94.6

Additions to property, equipment and intangibles assets	(49.1)	(42.5)	(6.6)	(193.4)	(145.3)	(48.1)
Payment for acquisition of businesses, net of cash acquired	(4.2)	(0.5)	(3.8)	(22.5)	(16.1)	(6.4)
Other	0.3	0.1	0.1	24.1	(0.3)	24.4
Net Cash Provided by (Used in) Investing Activities	€ (53.1)	€ (42.9)	€ (10.2)	€ (191.7)	€ (161.6)	€ (30.1)

Proceeds from exercise of stock options	4.4	28.5	(24.1)	48.4	67.0	(18.6)
Cash dividends paid	–	0.0	(0.0)	(302.7)	(276.2)	(26.4)
Repurchase and sale of treasury stock	(0.5)	10.6	(11.1)	(374.0)	(375.4)	1.4
Capital increase	–	(0.0)	0.0	–	146.1	(146.1)
Acquisition of non-controlling interests	(0.0)	(0.1)	0.1	(3.3)	(0.9)	(2.4)
Proceeds from borrowings	–	0.0	(0.0)	200.2	20.3	179.9
Repayment of borrowings	(100.0)	0.1	(100.0)	(700.9)	(28.1)	(672.7)
Repayment of lease liabilities	(18.7)	(26.3)	7.7	(79.7)	(89.4)	9.7
Net Cash Provided by (Used in) Financing Activities	€ (114.8)	€ 12.7	€ (127.5)	€ (1,211.9)	€ (536.7)	€ (675.2)

Effect of exchange rate changes on cash and cash equivalents	150.8	(63.2)	213.9	128.2	(67.5)	195.7

Increase (decrease) in cash and cash equivalents	€ 294.9	€ 200.1	€ 94.8	€ 384.3	€ 799.3	€ (415.0)

Cash and cash equivalents at beginning of period	€ 3,657.7	€ 3,368.1		€ 3,568.3	€ 2,769.0
Cash and cash equivalents at end of period	€ 3,952.6	€ 3,568.3		€ 3,952.6	€ 3,568.3

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

Readers are cautioned that the supplemental non-IFRS information presented in this press release is subject to inherent limitations. It is not based on any comprehensive set of accounting rules or principles and should not be considered as a substitute for IFRS measurements. Also, the Group’s supplemental non-IFRS financial information may not be comparable to similarly titled “non-IFRS” measures used by other companies. Further specific limitations for individual non-IFRS measures, and the reasons for presenting non-IFRS financial information, are set forth in the Group’s Document d’Enregistrement Universel for the year ended December 31, 2023 filed with the AMF on March 18, 2024. To compensate for these limitations, the supplemental non-IFRS financial information should be read not in isolation, but only in conjunction with the Group’s consolidated financial statements prepared in accordance with IFRS.

In millions of Euros, except per share data and percentages	Three months ended December 31,						Change
	2024	Adjustment⁽¹⁾	2024	2023	Adjustment⁽¹⁾	2023	IFRS	Non-IFRS⁽²⁾
	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Non-IFRS⁽²⁾
Total Revenue	€ 1,754.2	–	€ 1,754.2	€ 1,643.4	–	€ 1,643.4	7%	7%
Revenue breakdown by activity
Software revenue	1,601.5	–	1,601.5	1,476.1	–	1,476.1	8%	8%
Licenses and other software revenue	405.4	–	405.4	351.9	–	351.9	15%	15%
Subscription and Support revenue	1,196.1	–	1,196.1	1,124.3	–	1,124.3	6%	6%
Recurring portion of Software revenue	75%		75%	76%		76%
Services revenue	152.8	–	152.8	167.3	–	167.3	(9)%	(9)%
Software Revenue breakdown by product line
Industrial Innovation	901.8	–	901.8	837.3	–	837.3	8%	8%
Life Sciences	297.7	–	297.7	295.1	–	295.1	1%	1%
Mainstream Innovation	402.0	–	402.0	343.7	–	343.7	17%	17%
Software Revenue breakdown by geography
Americas	595.0	–	595.0	566.7	–	566.7	5%	5%
Europe	685.0	–	685.0	601.1	–	601.1	14%	14%
Asia	321.4	–	321.4	308.4	–	308.4	4%	4%
Total Operating Expenses	€ (1,270.9)	€ 153.4	€ (1,117.5)	€ (1,261.8)	€ 208.2	€ (1,053.6)	1%	6%
Share-based compensation expense and related social charges	(69.7)	69.7	–	(73.2)	73.2	–
Amortization of acquired intangible assets and of tangible assets revaluation	(87.5)	87.5	–	(94.9)	94.9	–
Lease incentives of acquired companies	(0.4)	0.4	–	(0.7)	0.7	–
Other operating income and expense, net	4.2	(4.2)	–	(39.5)	39.5	–
Operating Income	€ 483.4	€ 153.4	€ 636.8	€ 381.6	€ 208.2	€ 589.8	27%	8%
Operating Margin	27.6%		36.3%	23.2%		35.9%
Financial income (loss), net	22.9	1.1	24.0	27.8	1.0	28.8	(18)%	(17)%
Income tax expense	(95.4)	(33.2)	(128.6)	(79.1)	(51.3)	(130.4)	21%	(1)%
Non-controlling interest	1.1	(2.6)	(1.5)	(0.3)	(0.7)	(1.0)	N/A	53%
Net Income attributable to shareholders	€ 412.0	€ 118.7	€ 530.7	€ 330.0	€ 157.2	€ 487.2	25%	9%
Diluted Earnings Per Share ⁽³⁾	€ 0.30	€ 0.10	€ 0.40	€ 0.25	€ 0.12	€ 0.36	20%	9%

⁽¹⁾ In the reconciliation schedule above, (i) all adjustments to IFRS revenue data reflect the exclusion of the effect of adjusting the carrying value of acquired companies’ contract liabilities (deferred revenue); (ii) adjustments to IFRS operating expense data reflect the exclusion of the amortization of acquired intangible assets and of tangible assets revaluation, share-based compensation expense, including related social charges, lease incentives of acquired companies, as detailed below, and other operating income and expense, net including acquisition, integration and restructuring expenses, and impairment of goodwill and acquired intangible assets; (iii) adjustments to IFRS financial loss, net reflect the exclusion of certain one-time items included in financial loss, net, and; (iv) all adjustments to IFRS income data reflect the combined effect of these adjustments, plus with respect to net income and diluted earnings per share, certain one-time tax effects and the income tax effect of the non-IFRS adjustments.

In millions of Euros, except percentages	Three months ended December 31,								Change
In millions of Euros, except percentages	2024 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2024 Non-IFRS	2023 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2023 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(266.9)	5.0	0.1	(261.8)	(255.9)	3.6	0.2	(252.1)	4%	4%
Research and development expenses	(327.7)	18.2	0.2	(309.3)	(317.5)	28.5	0.3	(288.7)	3%	7%
Marketing and sales expenses	(456.6)	25.1	0.1	(431.4)	(429.3)	20.9	0.1	(408.3)	6%	6%
General and administrative expenses	(136.4)	21.4	0.0	(115.0)	(124.8)	20.2	0.0	(104.5)	9%	10%
Total		€ 69.7	€ 0.4			€ 73.2	€ 0.7

⁽²⁾ The non-IFRS percentage increase (decrease) compares non-IFRS measures for the two different periods. In the event there is non-IFRS adjustment to the relevant measure for only one of the periods under comparison, the non-IFRS increase (decrease) compares the non-IFRS measure to the relevant IFRS measure.
⁽³⁾ Based on a weighted average 1,330.0 million diluted shares for Q4 2024 and 1,336.6 million diluted shares for Q4 2023, and, for IFRS only, a diluted net income attributable to the sharehorlders of € 394.7 million for Q4 2024 (€ 330.0 million for Q4 2023). The Diluted net income attributable to equity holders of the Group corresponds to the Net Income attributable to equity holders of the Group adjusted by the impact of the share-based compensation plans to be settled either in cash or in shares at the option of the Group.

DASSAULT SYSTÈMES
SUPPLEMENTAL NON-IFRS FINANCIAL INFORMATION
IFRS – NON-IFRS RECONCILIATION
(unaudited; in millions of Euros, except per share data and percentages)

In millions of Euros, except per share data and percentages	Twelve months ended December 31,						Change
	2024	Adjustment⁽¹⁾	2024	2023	Adjustment⁽¹⁾	2023	IFRS	Non-IFRS⁽²⁾
	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Adjustment⁽¹⁾	Non-IFRS	IFRS	Non-IFRS⁽²⁾
Total Revenue	€ 6,213.6		€ 6,213.6	€ 5,951.4	–	€ 5,951.4	4%	4%
Revenue breakdown by activity
Software revenue	5,613.3		5,613.3	5,360.0	–	5,360.0	5%	5%
Licenses and other software revenue	1,125.2	–	1,125.2	1,087.6	–	1,087.6	3%	3%
Subscription and Support revenue	4,488.1		4,488.1	4,272.4	–	4,272.4	5%	5%
Recurring portion of Software revenue	80%		80%	80%		80%
Services revenue	600.3	–	600.3	591.4	–	591.4	2%	2%
Software Revenue breakdown by product line
Industrial Innovation	3,019.6	–	3,019.6	2,908.0	–	2,908.0	4%	4%
Life Sciences	1,144.2	–	1,144.2	1,158.9	–	1,158.9	(1)%	(1)%
Mainstream Innovation	1,449.4	–	1,449.4	1,293.2	–	1,293.2	12%	12%
Software Revenue breakdown by geography
Americas	2,214.7		2,214.7	2,141.9	–	2,141.9	3%	3%
Europe	2,150.4	–	2,150.4	2,027.3	–	2,027.3	6%	6%
Asia	1,248.1	–	1,248.1	1,190.8	–	1,190.8	5%	5%
Total Operating Expenses	€ (4,854.0)	€ 624.2	€ (4,229.8)	€ (4,709.5)	€ 683.7	€ (4,025.8)	3%	5%
Share-based compensation expense and related social charges	(245.6)	245.6	–	(245.8)	245.8	–
Amortization of acquired intangible assets and of tangible assets revaluation	(361.6)	361.6	–	(378.9)	378.9	–
Lease incentives of acquired companies	(1.9)	1.9	–	(2.8)	2.8	–
Other operating income and expense, net	(15.0)	15.0	–	(56.2)	56.2	–
Operating Income	€ 1,359.6	€ 624.2	€ 1,983.7	€ 1,241.9	€ 683.7	€ 1,925.6	9%	3%
Operating Margin	21.9%		31.9%	20.9%		32.4%
Financial income (loss), net	118.4	3.2	121.6	59.0	29.3	88.2	101%	38%
Income tax expense	(279.9)	(117.0)	(396.8)	(250.7)	(164.1)	(414.8)	12%	(4)%
Non-controlling interest	2.1	(5.5)	(3.4)	0.7	(1.9)	(1.2)	190%	187%
Net Income attributable to shareholders	€ 1,200.2	€ 504.9	€ 1,705.1	€ 1,050.9	€ 546.9	€ 1,597.9	14%	7%
Diluted Earnings Per Share ⁽³⁾	€ 0.90	€ 0.38	€ 1.28	€ 0.79	€ 0.41	€ 1.20	14%	7%

In millions of Euros, except percentages	Twelve months ended December 31,								Change
In millions of Euros, except percentages	2024 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2024 Non-IFRS	2023 IFRS	Share-based compensation expense and related social charges	Lease incentives of acquired companies	2023 Non-IFRS	IFRS	Non- IFRS
Cost of revenue	(1,016.3)	16.2	0.5	(999.5)	(971.0)	15.7	0.8	(954.4)	5%	5%
Research and development expenses	(1,286.2)	76.9	0.9	(1,208.4)	(1,228.3)	94.4	1.3	(1,132.6)	5%	7%
Marketing and sales expenses	(1,704.3)	80.8	0.3	(1,623.3)	(1,624.5)	73.6	0.5	(1,550.4)	5%	5%
General and administrative expenses	(470.5)	71.7	0.2	(398.7)	(450.6)	62.2	0.2	(388.3)	4%	3%
Total		€ 245.6	€ 1.9			€ 245.8	€ 2.8

1 IFRS figures for 4Q24: total revenue at €1.75 billion, operating margin of 27.6% and diluted EPS at €0.30; IFRS figures for FY24: total revenue at €6.21 billion, operating margin of 21.9% and diluted EPS at €0.90.

Attachment

Dassault Systèmes: Strong Q4 results driven by new business acceleration and expanded 3DEXPERIENCE footprint

The MIL Network –

February 4, 2025

MIL-OSI Security: Member of Puyallup Tribe sentenced to 13 years in prison for shooting death of his friend

Source: Office of United States Attorneys

Tacoma – A member of the Puyallup Tribe was sentenced today in U.S. District Court in Tacoma to 13 years in prison for the fatal shooting of someone he considered a friend, announced U.S. Attorney Tessa M. Gorman. Dennis Jacobsen, 32, was arrested shortly after the shooting on October 21, 2021. Jacobsen was originally charged with unlawful possession of a firearm because of convictions for robbery and unlawful firearms possession in Pierce County Superior Court. In June 2024, Jacobsen pleaded guilty to voluntary manslaughter and using a firearm during a crime of violence.

At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “This is a tragic story of illicit drug use and a firearm. The lives of the loved ones of the victim will carry this loss for years.”

According to records filed in the case, both Jacobsen and the victim had been drinking and using drugs the morning of the shooting. The two were seen together outside the victim’s home within the confines of the Puyallup reservation. The two men walked behind the home and witnesses heard three gunshots. The victim was shot once in the arm and twice in the head, at least once at close range. Witnesses then saw Jacobsen run from behind the house, get in a vehicle and drive away.

When police went to Jacobsen’s residence, they found the handgun with one bullet still in the chamber. The ammunition matched the type of ammunition used in the shooting.

In asking for the 15-year sentence, Assistant U.S. Attorney Todd Greenberg wrote to the court, “The impact of (the victim’s) killing has been felt deeply in the community. His girlfriend was pregnant with his son at the time of the killing. She can now only show her son the photographs of his father. (The victim’s) parents are now without a son and the greater Puyallup community has lost another tribal member to a violent tragedy.”

Jacobsen will be on five years of supervised release following his prison sentence.

The case was investigated by the Puyallup Tribal Police and the FBI.

The case is being prosecuted by Assistant United States Attorney Todd Greenberg.

MIL Security OSI –

February 4, 2025
MIL-OSI Security: White Supremacist Leader Found Guilty of Conspiring to Destroy Regional Power Grid

Source: Office of United States Attorneys

Baltimore, Maryland – After a six-day trial, a federal jury found Brandon Russell, 29, a resident of Orlando, Florida, guilty of conspiracy to damage an energy facility.

Erek L. Barron, United States Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno, of the Federal Bureau of Investigation, Baltimore Field Office announced the jury’s verdict.

“Hate-fueled violence has no place in a civilized society. Brandon Russell went well beyond his First Amendment rights, orchestrating a terrorist plot that would have harmed thousands of innocent people,” Barron said. “It won’t always be popular, but this office will do the right thing, the right way, for the right reason.”

“Brandon Russell, a self-proclaimed National Socialist, conspired to ‘lay waste to the city of Baltimore’ through violence and destruction of critical infrastructure. Today’s verdict reinforces there is no tolerance for those who seek to harm our communities and use violence to further hate-filled beliefs,” DelBagno said. “I am proud of the tremendous work by FBI Baltimore’s Joint Terrorism Task Force which led this investigation. The FBI remains diligent in protecting Marylanders from national security and public safety threats every single day in conjunction with our dedicated law enforcement and private sector partners.”

According to evidence presented at trial, from at least November 2022 to February 3, 2023, Russell conspired to carry out attacks against critical infrastructure, specifically transformers located within electrical substations, in furtherance of Russell’s racially or ethnically motivated violent extremist beliefs. Russell posted links to open-source maps of infrastructure, which included the locations of electrical substations, and he described how a small number of attacks on substations could cause a “cascading failure.” Russell also discussed maximizing the impact of the planned attack by hitting multiple substations at one time.

Russell recruited a Maryland-based woman, Sarah Beth Clendaniel, to carry out the attacks in Baltimore and elsewhere. They planned to damage energy facilities involved in the transmission and distribution of electricity and to cause a significant interruption and impairment of the Baltimore regional power grid. The intended monetary loss associated with the planned attacks would have exceeded $75 million. Clendaniel identified five substations to target, and Russell attempted to secure a weapon for Clendaniel. Clendaniel stated that if they hit a number of substations all in the same day, they “would completely destroy this whole city,” and that a “good four or five shots through the center of them . . . should make that happen.” She further added, “[i]t would probably permanently completely lay this city to waste if we could do that successfully.”

Russell faces a maximum sentence of 20 years in federal prison for conspiracy to damage an energy facility. Senior United States District Judge James K. Bredar will determine the sentence after accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has not been scheduled. On September 25, 2024, U.S. District Judge Bredar sentenced Clendaniel, to 18 years in federal prison, followed by a lifetime of supervised release, for conspiring with Russell to damage or destroy an energy facility in violation of 18 U.S.C. § 1366(a), and a concurrent sentence of 15 years for being a felon in possession of a firearm, and 3 years of supervised release, in violation of 18 U.S.C. § 922(g)(1).

U.S. Attorney Barron commended the Baltimore FBI Field Office for its outstanding work in the investigation and praised the Joint Terrorism Task Force, the Maryland State Police, the Baltimore County Police Department and the Tampa, Washington, and New York Field Offices of the FBI for their valuable assistance. Mr. Barron also thanked the Department of Justice’s National Security Division and the United States Attorney’s Office for the Middle District of Florida for their assistance. Mr. Barron thanked the prosecution team for their hard work and diligence in the 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. To report a Maryland-based hate crime, contact the FBI Baltimore field office at (410) 265-8080 or www.tips.fbi.gov.

# # #

MIL Security OSI –

February 4, 2025
MIL-OSI USA: DHS Agencies Support Super Bowl LIX Security

Source: US Federal Emergency Management Agency

Headline: DHS Agencies Support Super Bowl LIX Security

lass=”text-align-center”>Continuing a 20+ Year Partnership, More Than 690 DHS Employees Work to Protect Estimated 73,000 Fans Attending the Big Game
WASHINGTON – Department of Homeland Security Secretary Kristi Noem traveled to New Orleans this week to observe DHS security operations for Super Bowl LIX. More than 690 employees representing 12 DHS agencies are in New Orleans, providing air security resources; venue, cyber, and infrastructure security assessments; chemical, biological, radiological, nuclear, and explosives detection technologies; intelligence analysis and threat assessments; intellectual property enforcement; and real-time situational awareness reporting as part of a 20-year partnership with the National Football League and state and local law enforcement.
“Around 100,000 people will be celebrating the Super Bowl in and around the Superdome in New Orleans this weekend,” said Secretary Noem. “We will give law enforcement every resource they need to ensure a safe event. Thank you to our partners, Governor Landry, Mayor Cantrell and the New Orleans Police Department. If you see something, say something!”
“Since day one, we have stood steadfast in our mission: to protect what matters most,” said Eric DeLaune, Homeland Security Investigations (HSI) New Orleans Special Agent in Charge and lead federal coordinator for Super Bowl LIX. “From securing critical infrastructure to providing real-time threat analysis, we are committed to safeguarding our communities. With over 690 DHS personnel deployed, we bring cutting-edge security resources and technologies to ensure every aspect of this event is protected.”
DHS has assessed this year’s Super Bowl as a Special Event Assessment Rating (SEAR) Level 1 event. For more information, visit the SEAR Fact Sheet webpage. Although no specific, credible threats related to this year’s game have been identified, the U.S. remains in a heightened threat environment, as evidenced by the recent terror attack in New Orleans on New Year’s Day.
DHS security efforts for Super Bowl LIX include the following:

U.S. Customs and Border Protection’s (CBP): Air and Marine Operations (AMO) will enforce temporary flight restrictions around Caesars Superdome, providing “eye in the sky” intelligence, surveillance and reconnaissance flight operations in and around key venues, including the Superdome, airport, Bourbon Street and the Ernest N. Morial Convention Center. Additionally, CBP will provide video surveillance capabilities and non-intrusive inspections by scanning the cargo entering the stadium for contraband such as narcotics, weapons, and explosives. CBP will also work to intercept counterfeit NFL merchandise such as NFL jerseys, championship rings, T-shirts, caps and all sorts of souvenirs and memorabilia, which are often used to fund criminal organizations.
Homeland Security Investigations (HSI): An HSI Special Response Team is standing by to provide interior stadium tactical support, and HSI’s special agents will support will also CBP, local law enforcement agencies, and other private partners in identifying an investigating any flea markets, retail outlets, street vendors and online marketplaces selling counterfeit goods during the week leading up to the Super Bowl to protect consumers, who are expected to spend over $16.5 billion nationwide. HSI will also oversee the coordination of DHS assets with local, state, and federal law enforcement agencies to ensure essential public safety measures and resources are in the right place, at the right time.
Cybersecurity and Infrastructure Security Agency (CISA): On Super Bowl Sunday, CISA will also deploy advisors and emergency communications coordinators to support local law enforcement, emergency responders, and private partners in New Orleans. Ahead of the event, the agency conducted physical and cybersecurity vulnerability assessments, planning exercises, and bomb safety workshops with state and local partners.
Office of Intelligence &Analysis (I&A): I&A worked with the Federal Bureau of Investigation (FBI) to assess the threat landscape leading up to the Super Bowl, including sharing timely and actionable information and intelligence with their state and local partners.
Countering Weapons of Mass Destruction Office (CWMD): CWMD provided surge support from its Mobile Detection Deployment Program and its BioWatch program in coordination with the City of New Orleans.
U.S. Coast Guard (USCG): USCG Pacific Strike Team is supporting the Mobile Detection Deployment Program to bolster DHS’s ability to detect and interdict chemical, biological, radiological, and nuclear threats, and Canine Explosive Detection teams will support the safety and security of the event.
Transportation Security Administration (TSA): A TSA Supervisory Federal Air Marshal will staff the Fusion Watch Center during the event, and will use its National Deployment Force to increase the number of transportation security officers working at Louis Armstrong New Orleans International Airport to screen the increased number of departing passengers after the Super Bowl. TSA’s explosive detection canines and Visible Intermodal Prevention and Response (VIPR) teams will also work during Super Bowl week events at key venues.
Science & Technology Directorate (S&T): S&T will deploy easy-to assemble, expandable security barriers that can be installed quickly to provide critical asset protection and intrusion prevention.
Federal Emergency Management Agency (FEMA): FEMA will help keep fans safe by providing communication tools for state and local responders.
DHS Blue Campaign: This public awareness campaign is disseminating digital and out-of-home advertising in the New Orleans area to raise human trafficking awareness among visitors, local residents, and those working in industries, such as hotels, hospitality, and transportation, where frontline employees are more likely to be in a position to identify and report human trafficking. The campaign’s Blue Lightning Initiative is also partnering with Louis Armstrong New Orleans International Airport to raise awareness and train staff to recognize and report human trafficking.

DHS reminds the public that “If You See Something, Say Something®” is more than a slogan. It is a call to action to report suspicious terrorism-related activity. Follow DHS’s security efforts on X: @DHSgov.

MIL OSI USA News –

February 4, 2025
MIL-OSI USA: Durbin Leads All Senate Judiciary Committee Democrats IN Letters Demanding Answers From FBI, DOJ Nominees, Acting Attorney General, And Acting FBI Director On Trump Administration Forcing Out DOJ And FBI Officials

US Senate News:

Source: United States Senator for Illinois Dick Durbin

February 03, 2025

WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, today led all Senate Judiciary Committee Democrats in letters to President Trump’s nominee to be the Attorney General of the Department of Justice (DOJ), Pam 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.

In addition to Durbin, the letters were signed by U.S. Senators Sheldon Whitehouse (D-RI), Amy Klobuchar (D-MN), Chris Coons (D-DE), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Cory Booker (D-NJ), Alex Padilla (D-CA), Peter Welch (D-VT), and Adam Schiff (D-CA).

The Senators wrote, “We have grave concerns about the removal or reassignment across the Department of Justice (DOJ) and Federal Bureau of Investigation (FBI) of senior career civil servants who have served honorably under multiple administrations, regardless of the President’s party. The removals and reassignments from their positions of a significant number of experienced, nonpartisan Department officials with invaluable national security expertise without any comparable replacements one day into the second Trump Administration presents an alarming threat to national security. As many as 20 senior Department officials were reassigned or removed, including the veteran career deputy assistant attorneys general in the Department’s National Security Division.”

The Senators continued, “Our alarm has only grown in the past two weeks as this purge of experienced career prosecutors and agents has expanded to include the removal or forced retirement of all six Executive Assistant Directors (EADs), including the EADs who oversee the National Security Branch, Intelligence Branch, and the Criminal, Cyber, Response, and Services Branch; as well as the Assistant Directors and the Special Agents in Charge of at least four major field offices. Acting Deputy Attorney General Emil Bove ordered these actions in a January 31, 2025 memo, stating, ‘I do not believe the current leadership of the Justice Department can trust these FBI employees to assist in implementing the President’s agenda faithfully.’ Similarly, more than a dozen senior Department prosecutors were fired after receiving memos from Acting Attorney General McHenry stating: ‘Given your significant role in prosecuting the President, I do not believe that the leadership of the Department can trust you to assist in implementing the President’s agenda faithfully.’ Retaliating against these career public servants who were simply doing the work assigned to them is outrageous and unacceptable.”

Over the weekend, thousands of FBI personnel across the country were asked to complete a questionnaire by today, Monday, February 3, at 3pm. The survey asks for their job title, whether they worked on a case related to the January 6^th attack on the Capitol, “if they were involved in the arrest of a Jan. 6 suspect, if they testified at a trial, if they interviewed witnesses, if they conducted surveillance on suspects and more.” It has also been reported that the Acting FBI Director is being advised by an advisory committee comprised of partisan political operators, including an Elon Musk affiliate. This is a stark departure from the longstanding tradition that the FBI Director is the only political appointee in the Bureau.

“As America faces a heightened threat landscape, these shocking removals and reassignments deprive DOJ and the FBI of experienced, senior leadership and decades of experience fighting violent crime, espionage, and terrorism. As the FBI Agents Association stated in response to reports about the removal of FBI officials: ‘Dismissing potentially hundreds of Agents would severely weaken the Bureau’s ability to protect the country from national security and criminal threats and will ultimately risk setting up the Bureau and its new leadership for failure,’” the Senators wrote. “Moreover, the firing of dozens of federal prosecutors and hundreds of agents will cripple FBI field offices and U.S. Attorney’s offices across the country. We can only assume these decisions are intended to prevent the Department from investigating national security and public corruption, while also serving as political retribution against the President’s perceived enemies and stoking fear among the dedicated and talented workforce in our nation’s premier law enforcement agency.”

In the letter, the Senators state that the Senate Judiciary Committee has a constitutional obligation to perform oversight over the Department and its components, and to provide advice and consent on the nominations of officers to lead it. To that end, they request various information to be returned to the Committee in response to the removal of FBI and DOJ officials. They also request answers from these individuals about their involvement.

The full letter to AG nominee Pam Bondi can be found here.

The full letter to FBI Director nominee Kash Patel can be found here.

The full letter to Deputy AG nominee Todd Blanche can be found here.

The full letter to Acting AG McHenry and Acting FBI Director Driscoll can be found here.

-30-

MIL OSI USA News –

February 4, 2025
MIL-OSI Security: U.S. Attorney’s Office Announces Zuni Woman Sentenced to 18 Year Prison Sentence for Fatal Kidnapping

Source: Office of United States Attorneys

ALBUQUERQUE – A Zuni woman was sentenced to 18 years in federal prison for her involvement in a 2019 kidnapping that resulted in the victim’s death.

There is no parole in the federal system.

According to court documents, between July 1 and July 16, 2019, Kendra Panteah, 37, an enrolled member of the Zuni Pueblo, participated in confining John Doe in the trunk of his own vehicle. She then brought the vehicle and victim to her co-defendant, Gilbert John Jr., and proceeded to drive around the Navajo Nation for over 24 hours with the victim locked in the trunk. They then stopped near Bass Lake, NM. When John Doe attempted to escape, John Jr. repeatedly stabbed him with a machete, resulting in the victim’s death.

After the killing, Panteah and John Jr. abandoned the vehicle with the body inside for several days. John Jr. later towed the vehicle to a remote location, doused it with gasoline, and set it on fire to destroy evidence. The victim was only identified through hip replacement devices found in the burned vehicle.

Gilbert John Jr. pleaded guilty to second-degree murder and was sentenced to 21 years in prison in June of 2024.

Upon her release from prison, Panteah will be subject to five years of supervised release.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Navajo Police Department and Department of Criminal Investigations. Assistant United States Attorneys Mark A. Probasco and Alexander F. Flores prosecuted the case.

# # #

MIL Security OSI –

February 4, 2025
MIL-OSI Security: U.S. Attorney’s Office Secures 17-Year Sentence in Child Exploitation Case

Source: Office of United States Attorneys

ALBUQUERQUE – A Navajo, New Mexico man was sentenced to 17 years in federal prison today for systematically sexually exploiting a minor through text messages and social media communications.

There is no parole in the federal system.

According to court documents, between February 1, 2021, and April 1, 2021, Dustin Rockmen, 33, an enrolled member of the Navajo Nation, sent text and Facebook communications to a minor under the age of 18 to persuade her to engage in illegal sexual acts. Rockmen engaged in repeated sexual acts with the victim, threatened her in order to get her to continue engaging in sexual acts with Rockmen, distributed an image of the victim engaged in a sexual act with Rockmen, and sent pornographic material to the victim.

Upon his release from prison, Rockmen will be subject to five years of supervised release.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation, made the announcement today.

The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant U.S. Attorney Robert James Booth II is prosecuting the case 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.

# # #

MIL Security OSI –

February 4, 2025
MIL-OSI Security: DHS Agencies Support Super Bowl LIX Security
Source: US Department of Homeland Security

Continuing a 20+ Year Partnership, More Than 690 DHS Employees Work to Protect Estimated 73,000 Fans Attending the Big Game

WASHINGTON – Department of Homeland Security Secretary Kristi Noem traveled to New Orleans this week to observe DHS security operations for Super Bowl LIX. More than 690 employees representing 12 DHS agencies are in New Orleans, providing air security resources; venue, cyber, and infrastructure security assessments; chemical, biological, radiological, nuclear, and explosives detection technologies; intelligence analysis and threat assessments; intellectual property enforcement; and real-time situational awareness reporting as part of a 20-year partnership with the National Football League and state and local law enforcement.

“Around 100,000 people will be celebrating the Super Bowl in and around the Superdome in New Orleans this weekend,” said Secretary Noem. “We will give law enforcement every resource they need to ensure a safe event. Thank you to our partners, Governor Landry, Mayor Cantrell and the New Orleans Police Department. If you see something, say something!”

“Since day one, we have stood steadfast in our mission: to protect what matters most,” said Eric DeLaune, Homeland Security Investigations (HSI) New Orleans Special Agent in Charge and lead federal coordinator for Super Bowl LIX. “From securing critical infrastructure to providing real-time threat analysis, we are committed to safeguarding our communities. With over 690 DHS personnel deployed, we bring cutting-edge security resources and technologies to ensure every aspect of this event is protected.”

DHS has assessed this year’s Super Bowl as a Special Event Assessment Rating (SEAR) Level 1 event. For more information, visit the SEAR Fact Sheet webpage. Although no specific, credible threats related to this year’s game have been identified, the U.S. remains in a heightened threat environment, as evidenced by the recent terror attack in New Orleans on New Year’s Day.

DHS security efforts for Super Bowl LIX include the following:
- U.S. Customs and Border Protection’s (CBP): Air and Marine Operations (AMO) will enforce temporary flight restrictions around Caesars Superdome, providing “eye in the sky” intelligence, surveillance and reconnaissance flight operations in and around key venues, including the Superdome, airport, Bourbon Street and the Ernest N. Morial Convention Center. Additionally, CBP will provide video surveillance capabilities and non-intrusive inspections by scanning the cargo entering the stadium for contraband such as narcotics, weapons, and explosives. CBP will also work to intercept counterfeit NFL merchandise such as NFL jerseys, championship rings, T-shirts, caps and all sorts of souvenirs and memorabilia, which are often used to fund criminal organizations.
- Homeland Security Investigations (HSI): An HSI Special Response Team is standing by to provide interior stadium tactical support, and HSI’s special agents will support will also CBP, local law enforcement agencies, and other private partners in identifying an investigating any flea markets, retail outlets, street vendors and online marketplaces selling counterfeit goods during the week leading up to the Super Bowl to protect consumers, who are expected to spend over $16.5 billion nationwide. HSI will also oversee the coordination of DHS assets with local, state, and federal law enforcement agencies to ensure essential public safety measures and resources are in the right place, at the right time.
- Cybersecurity and Infrastructure Security Agency (CISA): On Super Bowl Sunday, CISA will also deploy advisors and emergency communications coordinators to support local law enforcement, emergency responders, and private partners in New Orleans. Ahead of the event, the agency conducted physical and cybersecurity vulnerability assessments, planning exercises, and bomb safety workshops with state and local partners.
- Office of Intelligence &Analysis (I&A): I&A worked with the Federal Bureau of Investigation (FBI) to assess the threat landscape leading up to the Super Bowl, including sharing timely and actionable information and intelligence with their state and local partners.
- Countering Weapons of Mass Destruction Office (CWMD): CWMD provided surge support from its Mobile Detection Deployment Program and its BioWatch program in coordination with the City of New Orleans.
- U.S. Coast Guard (USCG): USCG Pacific Strike Team is supporting the Mobile Detection Deployment Program to bolster DHS’s ability to detect and interdict chemical, biological, radiological, and nuclear threats, and Canine Explosive Detection teams will support the safety and security of the event.
- Transportation Security Administration (TSA): A TSA Supervisory Federal Air Marshal will staff the Fusion Watch Center during the event, and will use its National Deployment Force to increase the number of transportation security officers working at Louis Armstrong New Orleans International Airport to screen the increased number of departing passengers after the Super Bowl. TSA’s explosive detection canines and Visible Intermodal Prevention and Response (VIPR) teams will also work during Super Bowl week events at key venues.
- Science & Technology Directorate (S&T): S&T will deploy easy-to assemble, expandable security barriers that can be installed quickly to provide critical asset protection and intrusion prevention.
- Federal Emergency Management Agency (FEMA): FEMA will help keep fans safe by providing communication tools for state and local responders.
- DHS Blue Campaign: This public awareness campaign is disseminating digital and out-of-home advertising in the New Orleans area to raise human trafficking awareness among visitors, local residents, and those working in industries, such as hotels, hospitality, and transportation, where frontline employees are more likely to be in a position to identify and report human trafficking. The campaign’s Blue Lightning Initiative is also partnering with Louis Armstrong New Orleans International Airport to raise awareness and train staff to recognize and report human trafficking.
DHS reminds the public that “If You See Something, Say Something®” is more than a slogan. It is a call to action to report suspicious terrorism-related activity. Follow DHS’s security efforts on X: @DHSgov.

MIL Security OSI –
February 4, 2025
MIL-OSI Global: Trump’s tariff threats show the brute power of an imperial presidency

Source: The Conversation – Canada – By Daniel Drache, Professor Emeritus, Department of Politics, York University, Canada

United States President Donald Trump has agreed to delay punishing tariffs on all exports from Canada and Mexico, which resulted in a threat of retaliatory tariffs from Canada.

Nonetheless, Canada’s closest ally is all but tearing up the Canada-U.S.-Mexico trade deal negotiated only seven years ago. The rationale behind what the Wall Street Journal editorial board has called “the dumbest trade war in history” isn’t even clear.

The pessimistic view is that if Canada doesn’t give Trump everything he wants, he will bulldoze the country with more tariffs, sanctions on banks, enhanced border inspections and even a travel ban — everything he recently threatened to do to Colombia.

Canada’s political class is scrambling because the U.S. has long been a cultural sibling and an economic partner. But now it is toxic, threatening and untrustworthy. Will Canada sign another trade deal with Trump in office? The chances recede the longer the tariffs remain in place.

Iron-fisted

It’s never been more clear that Trump is obsessive, seldom a bluffer and always iron-fisted. He seems to have planned and executed this tariff bomb to cause maximum pain and chaos. Now he says the European Union is next on his list.

Trump is counting on his new majorities in U.S. Congress to ram through his radical right populist agenda, forcing other countries to play a role in his melodrama.

In response to Trump’s charge that the U.S. subsidizes Canadian trade, former Conservative prime minister Stephen Harper pointed out that half of America’s imported oil comes from Canada, and its price is significantly discounted due to a lack of pipeline capacity. “It’s actually Canada that subsidizes the United States in this regard,” Harper said.

Nevertheless, Trump’s preferred foreign policy tactic is to hit first with economic sanctions and negotiate later. With his near total grip on U.S. government, he can now achieve all his aims through tariffs.

Read more:
U.S. tariff threat: How it will impact different products and industries

The imperial presidency

Trump’s vision for his imperial presidency is organized around an old idea: the revenue tariff. Before income taxes, border tariffs were the primary source of income for government. But back then, government did a lot less.

For example, America’s 19th-century navy of wooden sailing ships was purchased with tariffs. But it would be impossible to fund modern-day health care, student loans and $13 billion aircraft carriers with tariff revenues.

A recent study by the Peterson Institute for International Economics shows the math doesn’t add up. Tariffs are levied on imported goods and are worth about US$3 trillion. American income tax is levied on incomes and are worth more than US$20 trillion. Government would have to be much smaller, and tariffs would have to be so high they would choke American trade, for tariffs to make economic sense.

And yet Trump has a broad mandate. In the summer of 2024, the U.S. Supreme Court ruled in Trump v. United States that presidents require a broadly defined “presumptive immunity from prosecution for … official acts.”

This decision has given Trump the legal clout to force the entire federal government to answer to the president himself.

Read more:
US Supreme Court immunity ruling ideal for a president who doesn’t care about democracy

War against democracy

Trump is using his vast new mandate to wage multiple wars simultaneously. These wars against the guardrails of liberal democracy require the punishment of his enemies inside his own party.

Read more:
Canada should be preparing for the end of American democracy

Republicans who have voted against Trump legislation during his first term faced high-profile challenges in the primaries as he funded their opponents. Today, the war is waged against those who are insufficiently loyal, including the highest ranks of the Coast Guard and the FBI.

The war against the administrative state involves the mass firing of independent inspectors, federal lawyers and thousands of civil servants to be replaced by foot soldiers personally loyal to the leader.

The Trump administration has sent out “deferred resignation” notices that invite the entire civil service to resign. This is the tactic Trump’s key adviser, Elon Musk, implemented at X, and it suggests a wave of firings will soon begin.

Nonsensical trade war

The trade war against Canada and Mexico is peculiar because neither country has expressed any willingness to abolish the United States-Mexico-Canada Agreement, which is among the achievements of Trump’s first administration.

Nevertheless, the paranoid Trump seems to be convinced that he got a raw deal in 2018, and so he wants to scrap the whole treaty and negotiate something tougher that brings more jobs home.

In 2024, the cars that were ranked most “American” in terms of their content and final assembly were made by Tesla, Honda and Volkswagen. By comparison, the best-selling the Dodge Ram 1500 pickup truck ranked No. 43 on the list. What Trump considers American and non-American isn’t clear, even to voters.

A new Bank of Canada forecast predicts that American tariffs may reduce Canadian GDP by six per cent. The federal government is planning an enormous bailout package to compensate for widespread job losses like the one offered to businesses and individuals during the pandemic.

Unsurprisingly, Trump divides Canada’s leadership. Alberta and Saskatchewan have publicly criticized the Team Canada approach. Alberta Premier Danielle Smith refused to sign the joint federal/provincial statement and played to her secessionist base.

Read more:
Why Alberta’s Danielle Smith is rejecting the Team Canada approach to Trump’s tariff threats

Even so, former Alberta premier Jason Kenney recognizes the peril, arguing that Alberta needs to “be prepared to retaliate … we can’t be wusses about this; we have to have a spine.”

What’s next?

Canada is an export-led economy based on natural resources. Its strength lies not in refusing to buy California wine or Florida orange juice. Its main sources of leverage are oil and gas, potash and uranium, rare earth minerals, timber products and hydroelectric power. But of all these, oil, uranium, and hydro-electric power are Canada’s biggest guns.

It’s not yet clear how effective the Canadian government’s strategy will be. Previous rounds of retaliation after the steel and aluminum tariffs in Trump’s first term did not drive him to the negotiating table. It’s also unclear what the CEOs of Canada’s branch-plant multinational corporations will do when their loyalties are divided between Trump and Canada.

Furthermore, it’s anyone’s guess how much the dissent of western Canadian premiers has hurt Canada’s case with Trump. Certainly, his preferred tactic is to divide and conquer.

Finally, it’s unclear if Ontario Premier Doug Ford’s “Captain Canada” approach will earn the respect or disdain of Republicans — although, ultimately, it doesn’t matter what the rest of the American political class thinks because Trump and his inner circle are calling all the shots.

In practical terms, there is little Canada can do to address the false accusations that it’s complicit in the illicit drug trade and in migrants crossing the border into the U.S. Facts don’t matter to Trump. He will eventually come up with a demand, and if Canada doesn’t give in, he will ramp up the economic pain.

Welcome to the post-liberal world order.

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

– ref. Trump’s tariff threats show the brute power of an imperial presidency – https://theconversation.com/trumps-tariff-threats-show-the-brute-power-of-an-imperial-presidency-247524

MIL OSI – Global Reports –

February 4, 2025
MIL-OSI USA: Virginia Gang Members Sentenced to Decades in Prison for Kidnapping and Murder

Source: US State Government of Utah

Hezekiah Carney, 26, of Norfolk, Virginia, and Jayquan Jones, 22, of Richmond, Virginia, were each sentenced today to 38 years in prison for federal charges relating to the kidnapping and murder of a fellow Almighty Black P. Stone gang member. A total of four defendants have now been sentenced as part of the case.

“The defendants assaulted and kidnapped a 25-year-old mother of two, drove her to a remote location, and murdered her by shooting her eight times,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “Cold-blooded, senseless gang violence like this affects entire communities. Today’s sentencings underscore that protecting our communities from violent criminals is a top Department priority. I applaud the tremendous work of all our prosecutors and law enforcement partners, who made securing these significant sentences possible.”

“This act of wanton violence exemplifies the senseless brutality we associate with organized gangs and emphasizes the importance of eradicating them from our communities,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “The investigation and prosecution that brought these defendants to justice were successful because of the vital partnerships built with our law enforcement partners working together toward our common goal of public safety.”

“When gang members resort to kidnapping and murder, they leave behind shattered lives and communities in fear,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division. “This sentencing should send a message that the FBI and our law enforcement partners are committed to holding dangerous criminals accountable, protecting innocent lives and ensuring our neighborhoods are safe from violence.”

“Today’s sentencing marks another significant step towards justice for the victim, her family and the community. While no sentence can ever undo the pain caused by this tragic crime, we hope this outcome brings forth an amount of closure” said Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division. “The ATF remains committed to working with our law enforcement partners as we protect our community and ensure those that commit violent crimes are held accountable for their actions.”

According to court documents, in the early morning hours of May 6, 2023, Carney, along with co-defendants Jamica Langley, 25, of Richmond; Donnisha Goodman, 27, of Portsmouth, Virginia; and Acacia Jackson, 20, of New York, traveled to the victim’s residence in Richmond to beat her for a perceived gang infraction.

The group left the apartment after beating the victim. About an hour later, Goodman, Jackson, Carney, and Langley returned to the victim’s apartment with fellow gang member Jones. Some of them were armed and wearing masks.

The defendants forced the victim into a Hyundai Sonata and drove her approximately an hour east of Richmond to a remote area in York County, Virginia. After forcing the victim from the vehicle, Jones and Goodman executed her by shooting her at least eight times to the head, abdomen, back, buttocks, and legs.

Upon returning to Portsmouth after the murder, Carney, the leader of the gang, directed Goodman, Jackson, and Langley to burn their clothing, stay together, and not to speak with law enforcement.

The day after the murder, on May 7, 2023, the Norfolk Police Department located the Sonata with Jackson, Goodman, and Langley in the car. From the car, police recovered a 9mm cartridge that displayed the same markings as casings found at the murder scene.

On Aug. 29, 2024, Carney, Goodman, and Jones pleaded guilty to using a firearm causing death, and Langley and Jackson pleaded guilty to conspiring to commit kidnapping. On Jan. 7, Goodman was sentenced to 35 years in prison and Langley was sentenced to 20 years in prison. Jackson is scheduled to be sentenced on Feb. 13.

The FBI, ATF, and state and local law enforcement partners investigated the case.

Trial Attorney Alyssa Levey-Weinstein of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Lisa McKeel and Mack Coleman for the Eastern District of Virginia prosecuted the case.

MIL OSI USA News –

February 4, 2025
MIL-OSI Security: U.S. Attorney’s Office and FBI Indict Two Individuals in Human Trafficking Case Involving Minor Victims Following APD Investigation

Source: Office of United States Attorneys

ALBUQUERQUE – Two individuals are facing federal human trafficking charges for allegedly forcing two minor girls, ages 14 and 15, into prostitution.

The indictment alleges that from December 29, 2024, to January 3, 2025, Roderick Bill Norseweather, 25, and Tajahnae Johnson, 21, knowingly recruited two minors for commercial sex acts, using force, threats, fraud, and coercion.

Norseweather and Johnson are accused of transporting the minors, both under 18 years old, across state lines with the intent that they engage in prostitution. Specifically, they are charged with two counts each of sex trafficking of minors and transportation of minors for illegal sexual activity.

Norseweather and Johnson will remain in custody pending trial, which has not been set. If convicted, Norseweather and Johnson each face no less than 15 years and up to life in prison.

U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

The FBI Albuquerque Field Office and Albuquerque Police Department investigated this case. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.

# # #

MIL Security OSI –

February 4, 2025
MIL-OSI Security: Virginia Gang Members Sentenced to Decades in Prison for Kidnapping and Murder

Source: United States Attorneys General 2

Hezekiah Carney, 26, of Norfolk, Virginia, and Jayquan Jones, 22, of Richmond, Virginia, were each sentenced today to 38 years in prison for federal charges relating to the kidnapping and murder of a fellow Almighty Black P. Stone gang member. A total of four defendants have now been sentenced as part of the case.

“The defendants assaulted and kidnapped a 25-year-old mother of two, drove her to a remote location, and murdered her by shooting her eight times,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “Cold-blooded, senseless gang violence like this affects entire communities. Today’s sentencings underscore that protecting our communities from violent criminals is a top Department priority. I applaud the tremendous work of all our prosecutors and law enforcement partners, who made securing these significant sentences possible.”

“This act of wanton violence exemplifies the senseless brutality we associate with organized gangs and emphasizes the importance of eradicating them from our communities,” said U.S. Attorney Erik S. Siebert for the Eastern District of Virginia. “The investigation and prosecution that brought these defendants to justice were successful because of the vital partnerships built with our law enforcement partners working together toward our common goal of public safety.”

“When gang members resort to kidnapping and murder, they leave behind shattered lives and communities in fear,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division. “This sentencing should send a message that the FBI and our law enforcement partners are committed to holding dangerous criminals accountable, protecting innocent lives and ensuring our neighborhoods are safe from violence.”

“Today’s sentencing marks another significant step towards justice for the victim, her family and the community. While no sentence can ever undo the pain caused by this tragic crime, we hope this outcome brings forth an amount of closure” said Special Agent in Charge Anthony Spotswood of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division. “The ATF remains committed to working with our law enforcement partners as we protect our community and ensure those that commit violent crimes are held accountable for their actions.”

According to court documents, in the early morning hours of May 6, 2023, Carney, along with co-defendants Jamica Langley, 25, of Richmond; Donnisha Goodman, 27, of Portsmouth, Virginia; and Acacia Jackson, 20, of New York, traveled to the victim’s residence in Richmond to beat her for a perceived gang infraction.

The group left the apartment after beating the victim. About an hour later, Goodman, Jackson, Carney, and Langley returned to the victim’s apartment with fellow gang member Jones. Some of them were armed and wearing masks.

The defendants forced the victim into a Hyundai Sonata and drove her approximately an hour east of Richmond to a remote area in York County, Virginia. After forcing the victim from the vehicle, Jones and Goodman executed her by shooting her at least eight times to the head, abdomen, back, buttocks, and legs.

Upon returning to Portsmouth after the murder, Carney, the leader of the gang, directed Goodman, Jackson, and Langley to burn their clothing, stay together, and not to speak with law enforcement.

The day after the murder, on May 7, 2023, the Norfolk Police Department located the Sonata with Jackson, Goodman, and Langley in the car. From the car, police recovered a 9mm cartridge that displayed the same markings as casings found at the murder scene.

On Aug. 29, 2024, Carney, Goodman, and Jones pleaded guilty to using a firearm causing death, and Langley and Jackson pleaded guilty to conspiring to commit kidnapping. On Jan. 7, Goodman was sentenced to 35 years in prison and Langley was sentenced to 20 years in prison. Jackson is scheduled to be sentenced on Feb. 13.

The FBI, ATF, and state and local law enforcement partners investigated the case.

Trial Attorney Alyssa Levey-Weinstein of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorneys Lisa McKeel and Mack Coleman for the Eastern District of Virginia prosecuted the case.

MIL Security OSI –

February 4, 2025
MIL-OSI Security: Security News: Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud Schemes

Source: United States Department of Justice 2

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 4, 2025
MIL-OSI USA: Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud Schemes

Source: US State of North Dakota

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 OSI USA News –

February 4, 2025
MIL-OSI Security: Man Pleads Guilty in Connection with $17M Medicare Hospice Fraud and Home Health Care Fraud Schemes

Source: United States Attorneys General 1

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 4, 2025

MIL-OSI: RBB Bancorp Reports Fourth Quarter and Fiscal Year 2024 Earnings

Source: GlobeNewswire (MIL-OSI)

LOS ANGELES, Feb. 03, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter and fiscal year ended December 31, 2024.

Fourth Quarter 2024 Highlights

Net income totaled $4.4 million, or $0.25 diluted earnings per share
Return on average assets of 0.44%, compared to 0.72% for the quarter ended September 30, 2024
Net interest margin of 2.76% compared to 2.68% for the quarter ended September 30, 2024
Book value and tangible book value per share⁽¹⁾ of $28.66 and $24.51 at December 31, 2024, compared to $28.81 and $24.64 at September 30, 2024

The Company reported net income of $4.4 million, or $0.25 diluted earnings per share, for the quarter ended December 31, 2024, compared to net income of $7.0 million, or $0.39 diluted earnings per share, for the quarter ended September 30, 2024. Net income for the year ended December 31, 2024 totaled $26.7 million, or $1.47 diluted earnings per share, compared to net income of $42.5 million, or $2.24 diluted earnings per share, for the year ended December 31, 2023.

“Declining funding costs and stable interest income drove net interest income and net interest margin higher in the fourth quarter,” said Johnny Lee, President of the Company and President and Chief Executive Officer of the Bank. “We continue to make good progress on our growth initiatives and expect we will resume loan growth in the first quarter and for the remainder of the year. We did see an increase in nonperforming loans mainly due to one credit relationship that was downgraded late in the fourth quarter. We are actively working to resolve our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital.”

“We are saddened by the devastation caused by the recent fires in Los Angeles,” said David Morris, Chief Executive Officer of the Company. “We stand ready to support our community and neighbors as they begin the process of rebuilding.”

(1)	Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Net Interest Income and Net Interest Margin

Net interest income was $26.0 million for the fourth quarter of 2024, compared to $24.5 million for the third quarter of 2024. The $1.4 million increase was due to a $130,000 increase in interest income and a $1.3 million decrease in interest expense. The increase in interest income was mostly due to higher interest income on cash and investment securities of $1.1 million offset by lower interest income on total loans of $952,000. The decrease in loan interest income was mostly due to lower average loans of $9.8 million and a 10 basis point decrease in the average loan yield due to decreases in market rates and a change in the loan mix. The increase in cash and investment interest income was attributed to higher average balances and a higher investment portfolio yield, offset by a lower yield on cash. The decrease in interest expense was mostly due to a 33 basis point decrease in total average interest-bearing deposit rates offset by higher average interest-bearing deposits of $33.8 million in the fourth quarter of 2024.

Net interest margin (“NIM”) was 2.76% for the fourth quarter of 2024, an increase of 8 basis points from 2.68% for the third quarter of 2024. The increase was due to a 25 basis point decrease in the overall cost of funds, partially offset by a 15 basis point decrease in the yield on average interest-earning assets. The yield on average interest-earning assets decreased to 5.79% for the fourth quarter of 2024 from 5.94% for the third quarter of 2024 due mainly to a 55 basis point decrease in the yield on average cash and cash equivalents to 5.02%, a decrease in the loan yield of 10 basis points and the impact of a change in the mix of average-earnings assets. Average loans represented 82% of average interest-earning assets in the fourth quarter of 2024, a 2% decrease from the third quarter of 2024. The decrease in the loan yield was attributed mostly to a decrease in market rates and a change in the loan mix.

The overall cost of funds decreased to 3.32% in the fourth quarter of 2024 from 3.57% in the third quarter of 2024 due to a lower average cost of interest-bearing deposits. The overall funding mix for the fourth quarter of 2024 remained relatively unchanged from the third quarter of 2024 with the ratio of average noninterest-bearing deposits to average total funding sources of 16%. The all-in average spot rate for total deposits was 3.15% at December 31, 2024.

Net interest income was $99.4 million for the year ended December 31, 2024, compared to $119.3 million for the year ended December 31, 2023. The $19.9 million decrease was due to a $15.4 million increase in interest expense and a $4.5 million decrease in interest income. The decrease in interest income was mostly due to lower interest income on total loans of $9.7 million offset by higher interest income on interest-earning deposits of $4.7 million. The decrease in loan interest income was mostly due to lower average loans of $164.3 million. The increase in cash and investment interest income was attributed to higher average cash balances and a higher investment portfolio yield, offset by a lower average of investment securities. The increase in interest expense was mostly due to a 72 basis point increase in total average interest-bearing deposit rates and higher average interest-bearing deposits of $30.1 million in the year ended December 31, 2024.

NIM was 2.70% for the year ended December 31, 2024, a decrease of 46 basis points from 3.16% for the year ended December 31, 2023. The decrease was due to a 55 basis point increase in the overall cost of funds, partially offset by a 2 basis point increase in the yield on average interest-earning assets. The yield on average interest-earning assets increased to 5.88% for the year ended December 31, 2024 compared to the prior year due mainly to a 12 basis point increase in the yield on average cash and cash equivalents to 5.53%, an 18 basis point increase in the investment portfolio yield, offset by the impact of lower average loan balances. Average loans represented 83% of average interest-earning assets during 2024, and 85% during 2023.

The overall cost of funds increased to 3.49% in the year ended December 31, 2024 from 2.94% in the year ended December 31, 2023 due to a higher average cost of interest-bearing deposits in response to higher average market interest rates. The overall funding mix for December 31, 2024 remained relatively unchanged from the prior year with a ratio of average noninterest-bearing deposits to average total funding sources of 16%.

Provision for Credit Losses

The provision for credit losses was $6.0 million for the fourth quarter of 2024 compared to $3.3 million for the third quarter of 2024. The fourth quarter of 2024 provision for credit losses was due to an increase in specific reserves of $4.3 million and net charge-offs of $2.0 million, partially offset by lower general reserves. The fourth quarter increase in specific reserves included $4.5 million for a construction loan secured by a partially completed mixed-use commercial project. Fourth quarter net charge-offs included $1.8 million for nonaccrual loans that were moved to held for sale (“HFS”). Net charge-offs on an annualized basis represented 0.26% of average loans for the fourth quarter of 2024 compared to 0.16% for the third quarter of 2024. The fourth quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including higher nonperforming loans, and changes in special mention and substandard loans during the period.

The provision for credit losses was $9.9 million for the year ended December 31, 2024 compared to $3.4 million for the year ended December 31, 2023. The 2024 provision included the impact from an increase in specific reserves of $6.1 million and net charge-offs of $3.9 million. Net charge-offs totaled $3.9 million for the year ended December 31, 2024, compared to $3.1 million for the year ended December 31, 2023. Net charge-offs represented 0.13% of average loans for the fiscal year 2024 compared to 0.10% for the fiscal year 2023.

Noninterest Income

Noninterest income for the fourth quarter of 2024 was $2.7 million, a decrease of $3.0 million from $5.7 million for the third quarter of 2024. This decrease was mostly due to the third quarter of 2024 including a $2.8 million recovery of a fully charged off loan acquired in a bank acquisition.

Noninterest income for the year ended December 31, 2024 was $15.3 million, an increase of $317,000 from $15.0 million for the year ended December 31, 2023. This increase was mostly due to a $2.9 million increase in recoveries on purchased loans, a $1.2 million increase in gain on sale of loans and an $883,000 increase in gain on OREO, offset by income from a $5.0 million Community Development Financial Institution Equitable Recovery Program award that was recognized during 2023.

Noninterest Expense

Noninterest expense for the fourth quarter of 2024 was $17.6 million, an increase of $228,000 from $17.4 million for the third quarter of 2024. This increase was mostly due to higher legal and professional expenses of $397,000, partially offset by lower occupancy and equipment expenses of $115,000. The annualized noninterest expenses to average assets ratio was 1.76% for the fourth quarter of 2024, down from 1.78% for the third quarter of 2024. The efficiency ratio was 61.5% for the fourth quarter of 2024, up from 57.5% for the third quarter of 2024 due mostly to lower noninterest income as the third quarter included a $2.8 million recovery of a fully charged off loan acquired in a bank acquisition.

Noninterest expense for the year ended December 31, 2024 was $69.2 million, a decrease of $1.5 million from $70.7 million for the year ended December 31, 2023. This decrease was mostly due to lower legal and professional expenses of $3.7 million, partially offset by higher salaries and employee benefits of $1.6 million. The noninterest expenses to average assets ratio was 1.76% for the fiscal year 2024 and 2023. The efficiency ratio was 60.3% for the year ended December 31, 2024, up from 52.6% for the year ended December 31, 2023 due mostly to lower net interest income for 2024.

Income Taxes

The effective tax rate was 13.3% for the fourth quarter of 2024 and 26.9% for the third quarter of 2024. The decrease in the effective tax rate for the fourth quarter was due primarily to higher tax credits relative to pre-tax net income as compared to the prior quarter.

The effective tax rate was 25.3% for the year ended December 31, 2024 and 29.5% for the year ended December 31, 2023. The decrease in the effective tax rate for 2024 was due primarily to higher tax credits as compared to the prior year.

Balance Sheet

At December 31, 2024, total assets were $4.0 billion, a $2.0 million increase compared to September 30, 2024, and a $33.5 million decrease compared to December 31, 2023.

Loan and Securities Portfolio

Loans held for investment (“HFI”) totaled $3.1 billion as of December 31, 2024, a decrease of $38.7 million compared to September 30, 2024 and a $21.4 million increase compared to December 31, 2023. The decrease from September 30, 2024 was primarily due to a $51.3 million decrease in commercial real estate (“CRE”) loans, a $6.9 million decrease in construction and land development (“C&D”) loans and an $826,000 decrease in Small Business Administration (“SBA”) loans, partially offset by a $20.6 million increase in single-family residential (“SFR”) mortgages and a $724,000 increase in commercial and industrial (“C&I”) loans. The loan to deposit ratio was 97.5% at December 31, 2024, compared to 98.6% at September 30, 2024 and 94.2% at December 31, 2023.

As of December 31, 2024, available-for-sale securities totaled $420.2 million, an increase of $114.5 million from September 30, 2024, primarily related to the purchase of $79.2 million in short-term commercial paper. As of December 31, 2024, net unrealized losses totaled $29.2 million, a $6.0 million increase due mostly to increases in treasury rates, when compared to net unrealized losses of $23.2 million as of September 30, 2024.

Deposits

Total deposits were $3.1 billion as of December 31, 2024, an $8.4 million decrease compared to September 30, 2024 and a $91.0 million decrease compared to December 31, 2023. The decrease during the fourth quarter of 2024 was due to a $27.8 million decrease in interest-bearing deposits, while noninterest-bearing deposits increased $19.4 million to $563.0 million as of December 31, 2024 compared to $543.6 million as of September 30, 2024. The decrease in interest-bearing deposits included a decrease in time deposits of $24.7 million and non-maturity deposits of $3.1 million. Wholesale deposits remained relatively unchanged at $147.5 million at December 31, 2024 compared to $147.3 million at September 30, 2024. Noninterest-bearing deposits represented 18.3% of total deposits at December 31, 2024 compared to 17.6% at September 30, 2024.

Credit Quality

Nonperforming assets totaled $81.0 million, or 2.03% of total assets, at December 31, 2024, compared to $60.7 million, or 1.52% of total assets, at September 30, 2024. The $20.4 million increase in nonperforming assets was due to the addition of one $26.4 million C&D loan, $2.0 million in SFR loans and $890,000 in SBA loans that migrated to nonaccrual status during the fourth quarter of 2024, partially offset by payoffs and paydowns of $6.7 million and partial charge-offs of $2.0 million.

Nonperforming assets at December 31, 2024 include loans HFS with a total fair value of $11.2 million, which were transferred from HFI during the fourth quarter of 2024 after a $1.8 million charge-off against the allowance for credit losses. These loans were reported as nonperforming loans at September 30, 2024.

Special mention loans totaled $65.3 million, or 2.14% of total loans, at December 31, 2024, compared to $77.5 million, or 2.51% of total loans, at September 30, 2024. The $12.2 million decrease was primarily due to CRE loans totaling $11.8 million that were upgraded to pass-rated and $1.8 million in payoffs and paydowns, offset by CRE loans totaling $1.4 million downgraded during the fourth quarter of 2024. All special mention loans are paying current.

Substandard loans totaled $100.3 million, of which $11.2 million were HFS at December 31, 2024, compared to $79.8 million at September 30, 2024. This $20.5 million increase was primarily due to downgrades of one $26.4 million C&D loan, SFR loans totaling $2.0 million, C&I loans totaling $1.9 million and SBA loans totaling $747,000. These downgrades were offset by payoffs and paydowns totaling $6.5 million, upgrades totaling $2.0 million and partial charge-offs totaling $2.0 million. Of the total substandard loans at December 31, 2024, there are $19.3 million on accrual status, including an $11.7 million C&D loan that was in the process of renewal and also included in the 30-89 day delinquent category below.

30-89 day delinquent loans, excluding nonperforming loans, totaled $22.1 million at December 31, 2024, compared to $10.6 million at September 30, 2024. The $11.5 million increase was mostly due to one $11.7 million C&D loan in process of renewal for a completed multifamily project at December 31, 2024, and since year end, it has been brought current and paid down by $1.5 million. Other changes in delinquent loans included additions totaling $5.5 million, offset by $3.2 million that returned to current status, $1.8 million that migrated to nonaccrual status and $735,000 in payoffs.

As of December 31, 2024, the allowance for credit losses totaled $48.5 million and was comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $44.5 million comprised of an allowance for loan losses of $43.7 million and a reserve for unfunded commitments of $779,000 at September 30, 2024. The $4.0 million increase in the allowance for credit losses for the fourth quarter of 2024 was due to a $6.0 million provision for credit losses offset by net charge-offs of $2.0 million. The increase in charge-offs in the fourth quarter of 2024 was primarily due to a decrease in the estimated fair value of collateral dependent loans and loans moved to HFS. The allowance for loan losses as a percentage of loans HFI increased to 1.56% at December 31, 2024, compared to 1.41% at September 30, 2024, due to an increase in specific reserves on one C&D loan mentioned previously. The allowance for loan losses as a percentage of nonperforming loans HFI was 68% at December 31, 2024, a decrease from 72% at September 30, 2024.


	For the Three Months Ended December 31, 2024									For the Year Ended December 31, 2024
*(dollars in thousands)*	Allowance for loan losses			Reserve for unfunded loan commitments			Allowance for credit losses			Allowance for loan losses			Reserve for unfunded loan commitments		Allowance for credit losses
Beginning balance	$	43,685		$	779		$	44,464		$	41,903		$	640	$	42,543
Provision for (reversal of) credit losses		6,050			(50	)		6,000			9,768			89		9,857
Less loans charged-off		(2,092	)		—			(2,092	)		(4,083	)		—		(4,083	)
Recoveries on loans charged-off		86			—			86			141			—		141
Ending balance	$	47,729		$	729		$	48,458		$	47,729		$	729	$	48,458

Shareholders’ Equity

At December 31, 2024, total shareholders’ equity was $507.9 million, a $1.9 million decrease compared to September 30, 2024, and a $3.4 million decrease compared to December 31, 2023. The decrease in shareholders’ equity for the fourth quarter of 2024 was due to higher net unrealized losses on available-for-sale securities of $4.2 million and common stock cash dividends paid of $2.9 million, offset by net income of $4.4 million, and equity compensation activity of $794,000. The decrease in shareholders’ equity for the year ended 2024 was due to common stock repurchases of $20.7 million, common stock cash dividends paid of $11.7 million and higher net unrealized losses on available-for-sale securities of $744,000, offset by net income of $26.7 million, and equity compensation activity of $3.1 million. Book value per share and tangible book value per share⁽¹⁾ decreased to $28.66 and $24.51 at December 31, 2024, down from $28.81 and $24.64 at September 30, 2024 and up from $27.47 and $23.48 at December 31, 2023.

Contact:
Lynn Hopkins, Chief Financial Officer
(213) 716-8066
lhopkins@rbbusa.com

(1)		Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

Corporate Overview

RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of December 31, 2024, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

Conference Call

Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, February 4, 2025, to discuss the Company’s fourth quarter 2024 financial results.

To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 834092, conference ID RBBQ424. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 51830, approximately one hour after the conclusion of the call and will remain available through February 5, 2025.

The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

Disclosure

This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

Safe Harbor

Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; our ability to attract and retain deposits and access other sources of liquidity; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system; the impact of future or recent changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters, including Accounting Standards Update 2016-13 (Topic 326, “Measurement of Current Losses on Financial Instruments, commonly referenced as the Current Expected Credit Losses Model, which changed how we estimate credit losses and may further increase the required level of our allowance for credit losses in future periods; market disruption and volatility; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; issuances of preferred stock; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2023, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.


RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)

	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
Assets
Cash and due from banks	$	27,747		$	26,388		$	23,313		$	21,887		$	22,671
Interest-earning deposits with financial institutions		229,998			323,002			229,456			247,356			408,702
Cash and cash equivalents		257,745			349,390			252,769			269,243			431,373
Interest-earning time deposits with financial institutions		600			600			600			600			600
Investment securities available for sale		420,190			305,666			325,582			335,194			318,961
Investment securities held to maturity		5,191			5,195			5,200			5,204			5,209
Loans held for sale		11,250			812			3,146			3,903			1,911
Loans held for investment		3,053,230			3,091,896			3,047,712			3,027,361			3,031,861
Allowance for loan losses		(47,729	)		(43,685	)		(41,741	)		(41,688	)		(41,903	)
Net loans held for investment		3,005,501			3,048,211			3,005,971			2,985,673			2,989,958
Premises and equipment, net		24,601			24,839			25,049			25,363			25,684
Federal Home Loan Bank (FHLB) stock		15,000			15,000			15,000			15,000			15,000
Cash surrender value of bank owned life insurance		60,296			59,889			59,486			59,101			58,719
Goodwill		71,498			71,498			71,498			71,498			71,498
Servicing assets		6,985			7,256			7,545			7,794			8,110
Core deposit intangibles		2,011			2,194			2,394			2,594			2,795
Right-of-use assets		28,048			29,283			30,530			31,231			29,803
Accrued interest and other assets		83,561			70,644			63,416			65,608			66,404
Total assets	$	3,992,477		$	3,990,477		$	3,868,186		$	3,878,006		$	4,026,025
Liabilities and shareholders’ equity
Deposits:
Noninterest-bearing demand	$	563,012		$	543,623		$	542,971		$	539,517		$	539,621
Savings, NOW and money market accounts		663,034			666,089			647,770			642,840			632,729
Time deposits, $250,000 and under		1,007,452			1,052,462			1,014,189			1,083,898			1,190,821
Time deposits, greater than $250,000		850,291			830,010			818,675			762,074			811,589
Total deposits		3,083,789			3,092,184			3,023,605			3,028,329			3,174,760
FHLB advances		200,000			200,000			150,000			150,000			150,000
Long-term debt, net of issuance costs		119,529			119,433			119,338			119,243			119,147
Subordinated debentures		15,156			15,102			15,047			14,993			14,938
Lease liabilities – operating leases		29,705			30,880			32,087			32,690			31,191
Accrued interest and other liabilities		36,421			23,150			16,818			18,765			24,729
Total liabilities		3,484,600			3,480,749			3,356,895			3,364,020			3,514,765
Shareholders’ equity:
Common stock		259,957			259,280			266,160			271,645			271,925
Additional paid-in capital		3,645			3,520			3,456			3,348			3,623
Retained earnings		264,460			262,946			262,518			259,903			255,152
Non-controlling interest		72			72			72			72			72
Accumulated other comprehensive loss, net		(20,257	)		(16,090	)		(20,915	)		(20,982	)		(19,512	)
Total shareholders’ equity		507,877			509,728			511,291			513,986			511,260
Total liabilities and shareholders’ equity	$	3,992,477		$	3,990,477		$	3,868,186		$	3,878,006		$	4,026,025


RBB BANCORP AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) *(In thousands, except share and per share data)*

	For the Three Months Ended							For the Year Ended
	December 31, 2024		September 30, 2024		December 31, 2023			December 31, 2024		December 31, 2023
Interest and dividend income:
Interest and fees on loans	$	46,374	$	47,326	$	45,895		$	184,567	$	194,264
Interest on interest-earning deposits		3,641		3,388		4,650			15,422		10,746
Interest on investment securities		3,962		3,127		3,706			14,331		14,028
Dividend income on FHLB stock		330		326		312			1,314		1,125
Interest on federal funds sold and other		248		258		269			1,027		985
Total interest and dividend income		54,555		54,425		54,832			216,661		221,148
Interest expense:
Interest on savings deposits, NOW and money market accounts		4,671		5,193		4,026			19,295		12,205
Interest on time deposits		21,361		22,553		22,413			89,086		76,837
Interest on long-term debt and subordinated debentures		1,660		1,681		2,284			6,699		9,951
Interest on FHLB advances		886		453		440			2,217		2,869
Total interest expense		28,578		29,880		29,163			117,297		101,862
Net interest income before provision for credit losses		25,977		24,545		25,669			99,364		119,286
Provision for (reversal of) credit losses		6,000		3,300		(431	)		9,857		3,362
Net interest income after provision for (reversal of) credit losses		19,977		21,245		26,100			89,507		115,924
Noninterest income:
Service charges and fees		988		1,071		972			4,115		4,172
Gain on sale of loans		376		447		116			1,586		374
Loan servicing fees, net of amortization		492		605		616			2,265		2,576
Increase in cash surrender value of life insurance		407		403		374			1,577		1,409
(Loss) gain on OREO		—		—		(57	)		1,016		133
Other income		466		3,220		5,373			4,776		6,354
Total noninterest income		2,729		5,746		7,394			15,335		15,018
Noninterest expense:
Salaries and employee benefits		9,927		10,008		8,860			39,395		37,795
Occupancy and equipment expenses		2,403		2,518		2,387			9,803		9,629
Data processing		1,499		1,472		1,357			5,857		5,326
Legal and professional		1,355		958		1,291			4,453		8,198
Office expenses		399		348		349			1,455		1,512
Marketing and business promotion		251		252		241			864		1,132
Insurance and regulatory assessments		677		658		1,122			3,298		3,165
Core deposit premium		182		200		215			784		923
Other expenses		956		1,007		571			3,254		3,016
Total noninterest expense		17,649		17,421		16,393			69,163		70,696
Income before income taxes		5,057		9,570		17,101			35,679		60,246
Income tax expense		672		2,571		5,028			9,014		17,781
Net income	$	4,385	$	6,999	$	12,073		$	26,665	$	42,465

Net income per share
Basic	$	0.25	$	0.39	$	0.64		$	1.47	$	2.24
Diluted	$	0.25	$	0.39	$	0.64		$	1.47	$	2.24
Cash dividends declared per common share	$	0.16	$	0.16	$	0.16		$	0.64	$	0.64
Weighted-average common shares outstanding
Basic		17,704,992		17,812,791		18,887,501			18,121,764		18,965,346
Diluted		17,796,840		17,885,359		18,900,351			18,183,319		18,985,233


RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited)

	For the Three Months Ended
	December 31, 2024						September 30, 2024						December 31, 2023
*(tax-equivalent basis, dollars in thousands)*	Average		Interest		Yield /		Average		Interest		Yield /		Average		Interest		Yield /
*(tax-equivalent basis, dollars in thousands)*	Balance		& Fees		Rate		Balance		& Fees		Rate		Balance		& Fees		Rate
Interest-earning assets
Cash and cash equivalents ⁽¹⁾	$	308,455	$	3,890	5.02	%	$	260,205	$	3,646	5.57	%	$	333,940	$	4,919	5.84	%
FHLB Stock		15,000		330	8.75	%		15,000		326	8.65	%		15,000		312	8.25	%
Securities
Available for sale ⁽²⁾		361,253		3,939	4.34	%		298,948		3,105	4.13	%		329,426		3,684	4.44	%
Held to maturity ⁽²⁾		5,194		48	3.68	%		5,198		46	3.52	%		5,212		46	3.50	%
Total loans		3,059,786		46,374	6.03	%		3,069,578		47,326	6.13	%		3,055,232		45,895	5.96	%
Total interest-earning assets		3,749,688	$	54,581	5.79	%		3,648,929	$	54,449	5.94	%		3,738,810	$	54,856	5.82	%
Total noninterest-earning assets		244,609						242,059						253,385
Total average assets	$	3,994,297					$	3,890,988					$	3,992,195

Interest-bearing liabilities
NOW		53,879		254	1.88	%	$	55,757	$	277	1.98	%	$	54,378	$	214	1.56	%
Money market		463,850		3,735	3.20	%		439,936		4,093	3.70	%		422,582		3,252	3.05	%
Saving deposits		162,351		682	1.67	%		164,515		823	1.99	%		148,354		560	1.50	%
Time deposits, $250,000 and under		1,034,946		11,583	4.45	%		1,037,365		12,312	4.72	%		1,162,014		13,244	4.52	%
Time deposits, greater than $250,000		835,583		9,778	4.66	%		819,207		10,241	4.97	%		781,833		9,169	4.65	%
Total interest-bearing deposits		2,550,609		26,032	4.06	%		2,516,780		27,746	4.39	%		2,569,161		26,439	4.08	%
FHLB advances		200,000		886	1.76	%		150,543		453	1.20	%		150,000		440	1.16	%
Long-term debt		119,466		1,295	4.31	%		119,370		1,295	4.32	%		155,536		1,895	4.83	%
Subordinated debentures		15,121		365	9.60	%		15,066		386	10.19	%		14,902		389	10.36	%
Total interest-bearing liabilities		2,885,196		28,578	3.94	%		2,801,759		29,880	4.24	%		2,889,599		29,163	4.00	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		539,900						528,081						535,554
Other noninterest-bearing liabilities		56,993						52,428						61,858
Total noninterest-bearing liabilities		596,893						580,509						597,412
Shareholders’ equity		512,208						508,720						505,184
Total liabilities and shareholders’ equity	$	3,994,297					$	3,890,988					$	3,992,195
Net interest income / interest rate spreads			$	26,003	1.85	%			$	24,569	1.70	%			$	25,693	1.82	%
Net interest margin					2.76	%					2.68	%					2.73	%

Total cost of deposits	$	3,090,509	$	26,032	3.35	%	$	3,044,861	$	27,746	3.63	%	$	3,104,715	$	26,439	3.38	%
Total cost of funds	$	3,425,096	$	28,578	3.32	%	$	3,329,840	$	29,880	3.57	%	$	3,425,153	$	29,163	3.38	%

____________________

(1)	Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2)	Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3)	Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.


RBB BANCORP AND SUBSIDIARIES AVERAGE BALANCE SHEET AND NET INTEREST INCOME (Unaudited)

	For the Year Ended
	December 31, 2024						December 31, 2023
*(tax-equivalent basis, dollars in thousands)*	Average		Interest		Yield /		Average		Interest		Yield /
*(tax-equivalent basis, dollars in thousands)*	Balance		& Fees		Rate		Balance		& Fees		Rate
Interest-earning assets
Cash and cash equivalents ⁽¹⁾	$	297,331	$	16,449	5.53	%	$	216,851	$	11,731	5.41	%
FHLB Stock		15,000		1,314	8.76	%		15,000		1,125	7.50	%
Securities
Available for sale ⁽²⁾		324,644		14,242	4.39	%		331,357		13,928	4.20	%
Held to maturity ⁽²⁾		5,200		188	3.62	%		5,509		198	3.59	%
Total loans		3,041,337		184,567	6.07	%		3,205,625		194,264	6.06	%
Total interest-earning assets		3,683,512	$	216,760	5.88	%		3,774,342	$	221,246	5.86	%
Total noninterest-earning assets		243,258						246,980
Total average assets	$	3,926,770					$	4,021,322

Interest-bearing liabilities
NOW	$	56,158		1,105	1.97	%	$	58,191	$	725	1.25	%
Money market		436,925		15,231	3.49	%		429,102		10,565	2.46	%
Saving deposits		162,243		2,959	1.82	%		126,062		915	0.73	%
Time deposits, $250,000 and under		1,074,291		50,059	4.66	%		1,146,513		47,150	4.11	%
Time deposits, greater than $250,000		803,187		39,027	4.86	%		742,839		29,687	4.00	%
Total interest-bearing deposits		2,532,804		108,381	4.28	%		2,502,707		89,042	3.56	%
FHLB advances		162,705		2,217	1.36	%		172,219		2,869	1.67	%
Long-term debt		119,324		5,182	4.34	%		169,182		8,477	5.01	%
Subordinated debentures		15,039		1,517	10.09	%		14,821		1,474	9.95	%
Total interest-bearing liabilities		2,829,872		117,297	4.14	%		2,858,929		101,862	3.56	%
Noninterest-bearing liabilities
Noninterest-bearing deposits		531,458						602,291
Other noninterest-bearing liabilities		53,970						59,562
Total noninterest-bearing liabilities		585,428						661,853
Shareholders’ equity		511,470						500,540
Total liabilities and shareholders’ equity	$	3,926,770					$	4,021,322
Net interest income / interest rate spreads			$	99,463	1.74	%			$	119,384	2.30	%
Net interest margin					2.70	%					3.16	%

Total cost of deposits	$	3,064,262	$	108,381	3.54	%	$	3,104,998	$	89,042	2.87	%
Total cost of funds	$	3,361,330	$	117,297	3.49	%	$	3,461,220	$	101,862	2.94	%

____________________

(1)	Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
(2)	Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
(3)	Average loan balances include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.


RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

	At or for the Three Months Ended									At or for the Year Ended December 31,
	December 31,			September 30,			December 31,
		2024		2024			2023			2024			2023
Per share data (common stock)
Book value	$	28.66		$	28.81		$	27.47		$	28.66		$	27.47
Tangible book value ⁽¹⁾	$	24.51		$	24.64		$	23.48		$	24.51		$	23.48
Performance ratios
Return on average assets, annualized		0.44	%		0.72	%		1.20	%		0.68	%		1.06	%
Return on average shareholders’ equity, annualized		3.41	%		5.47	%		9.48	%		5.21	%		8.48	%
Return on average tangible common equity, annualized ⁽¹⁾		3.98	%		6.40	%		11.12	%		6.09	%		9.97	%
Noninterest income to average assets, annualized		0.27	%		0.59	%		0.73	%		0.39	%		0.37	%
Noninterest expense to average assets, annualized		1.76	%		1.78	%		1.63	%		1.76	%		1.76	%
Yield on average earning assets		5.79	%		5.94	%		5.82	%		5.88	%		5.86	%
Yield on average loans		6.03	%		6.13	%		5.96	%		6.07	%		6.06	%
Cost of average total deposits ⁽²⁾		3.35	%		3.63	%		3.38	%		3.54	%		2.87	%
Cost of average interest-bearing deposits		4.06	%		4.39	%		4.08	%		4.28	%		3.56	%
Cost of average interest-bearing liabilities		3.94	%		4.24	%		4.00	%		4.14	%		3.56	%
Net interest spread		1.85	%		1.70	%		1.82	%		1.74	%		2.30	%
Net interest margin		2.76	%		2.68	%		2.73	%		2.70	%		3.16	%
Efficiency ratio ⁽³⁾		61.48	%		57.51	%		49.58	%		60.30	%		52.64	%
Common stock dividend payout ratio		64.00	%		41.03	%		25.00	%		43.54	%		28.57	%

____________________

(1)		Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
(2)		Total deposits include non-interest bearing deposits and interest-bearing deposits.
(3)		Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.


RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited) *(Dollars in thousands)*

	At or for the quarter ended
	December 31,			September 30,			December 31,
	2024			2024			2023
Credit Quality Data:
Special mention loans	$	65,329		$	77,501		$	32,842
Special mention loans to total loans		2.14	%		2.51	%		1.08	%
Substandard loans HFI	$	89,141		$	79,831		$	61,099
Substandard loans HFS	$	11,195		$	—		$	—
Substandard loans HFI to total loans HFI		2.92	%		2.58	%		2.02	%
Loans 30-89 days past due, excluding nonperforming loans	$	22,086		$	10,625		$	16,803
Loans 30-89 days past due, excluding nonperforming loans, to total loans		0.72	%		0.34	%		0.55	%
Nonperforming loans HFI	$	69,843		$	60,662		$	31,619
Nonperforming loans HFS	$	11,195		$	—		$	—
OREO	$	—		$	—		$	—
Nonperforming assets	$	81,038		$	60,662		$	31,619
Nonperforming loans HFI to total loans HFI		2.29	%		1.96	%		1.04	%
Nonperforming assets to total assets		2.03	%		1.52	%		0.79	%

Allowance for loan losses	$	47,729		$	43,685		$	41,903
Allowance for loan losses to total loans HFI		1.56	%		1.41	%		1.38	%
Allowance for loan losses to nonperforming loans HFI		68.34	%		72.01	%		132.52	%
Net charge-offs	$	2,006		$	1,201		$	109
Net charge-offs to average loans		0.26	%		0.16	%		0.01	%

Capital ratios ⁽¹⁾
Tangible common equity to tangible assets ⁽²⁾		11.08	%		11.13	%		11.06	%
Tier 1 leverage ratio		11.92	%		12.19	%		11.99	%
Tier 1 common capital to risk-weighted assets		17.94	%		18.16	%		19.07	%
Tier 1 capital to risk-weighted assets		18.52	%		18.75	%		19.69	%
Total capital to risk-weighted assets		24.49	%		24.80	%		25.92	%

____________________

(1	)	December 31, 2024 capital ratios are preliminary.
(2	)	Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.


RBB BANCORP AND SUBSIDIARIES SELECTED FINANCIAL HIGHLIGHTS (Unaudited)

Loan Portfolio Detail	As of December 31, 2024					As of September 30, 2024					As of December 31, 2023
*(dollars in thousands)*	$			%		$			%		$			%
Loans:
Commercial and industrial	$	129,585		4.2	%	$	128,861		4.2	%	$	130,096		4.3	%
SBA		47,263		1.5	%		48,089		1.6	%		52,074		1.7	%
Construction and land development		173,290		5.7	%		180,196		5.8	%		181,469		6.0	%
Commercial real estate ⁽¹⁾		1,201,420		39.3	%		1,252,682		40.5	%		1,167,857		38.5	%
Single-family residential mortgages		1,494,022		48.9	%		1,473,396		47.7	%		1,487,796		49.1	%
Other loans		7,650		0.4	%		8,672		0.2	%		12,569		0.4	%
Total loans ⁽²⁾	$	3,053,230		100.0	%	$	3,091,896		100.0	%	$	3,031,861		100.0	%
Allowance for loan losses		(47,729	)				(43,685	)				(41,903	)
Total loans, net	$	3,005,501				$	3,048,211				$	2,989,958

_____________________

(1)		Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
(2)		Net of discounts and deferred fees and costs of $488, $467, and $542 as of December 31, 2024, September 30, 2024, and December 31, 2023, respectively.


Deposits	As of December 31, 2024				As of September 30, 2024				As of December 31, 2023
*(dollars in thousands)*	$		%		$		%		$		%
Deposits:
Noninterest-bearing demand	$	563,012	18.3	%	$	543,623	17.6	%	$	539,621	17.0	%
Savings, NOW and money market accounts		663,034	21.5	%		666,089	21.5	%		632,729	19.9	%
Time deposits, $250,000 and under		882,438	28.6	%		926,877	30.0	%		876,918	27.6	%
Time deposits, greater than $250,000		827,854	26.8	%		808,304	26.1	%		719,892	22.7	%
Wholesale deposits ⁽¹⁾		147,451	4.8	%		147,291	4.8	%		405,600	12.8	%
Total deposits	$	3,083,789	100.0	%	$	3,092,184	100.0	%	$	3,174,760	100.0	%

______________________

(1)		Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

Non-GAAP Reconciliations

Tangible Book Value Reconciliations

Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of December 31, 2024, September 30, 2024, and December 31, 2023.


*(dollars in thousands, except share and per share data)*	December 31, 2024			September 30, 2024			December 31, 2023
Tangible common equity:
Total shareholders’ equity	$	507,877		$	509,728		$	511,260
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(2,011	)		(2,194	)		(2,795	)
Tangible common equity	$	434,368		$	436,036		$	436,967
Tangible assets:
Total assets-GAAP	$	3,992,477		$	3,990,477		$	4,026,025
Adjustments
Goodwill		(71,498	)		(71,498	)		(71,498	)
Core deposit intangible		(2,011	)		(2,194	)		(2,795	)
Tangible assets	$	3,918,968		$	3,916,785		$	3,951,732
Common shares outstanding		17,720,416			17,693,416			18,609,179
Common equity to assets ratio		12.72	%		12.77	%		12.70	%
Tangible common equity to tangible assets ratio		11.08	%		11.13	%		11.06	%
Book value per share	$	28.66		$	28.81		$	27.47
Tangible book value per share	$	24.51		$	24.64		$	23.48

Return on Average Tangible Common Equity

Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:


	Three Months Ended									Year Ended December 31,
*(dollars in thousands)*	December 31, 2024			September 30, 2024			December 31, 2023			2024			2023
Net income available to common shareholders	$	4,385		$	6,999		$	12,073		$	26,665		$	42,465
Average shareholders’ equity		512,208			508,720			505,184			511,470			500,540
Adjustments:
Average goodwill		(71,498	)		(71,498	)		(71,498	)		(71,498	)		(71,498	)
Average core deposit intangible		(2,129	)		(2,326	)		(2,935	)		(2,425	)		(3,282	)
Adjusted average tangible common equity	$	438,581		$	434,896		$	430,751		$	437,547		$	425,760
Return on average common equity		3.41	%		5.47	%		9.48	%		5.21	%		8.48	%
Return on average tangible common equity		3.98	%		6.40	%		11.12	%		6.09	%		9.97	%

The MIL Network –

February 4, 2025

MIL-OSI: Ingersoll Rand Continues Momentum on Inorganic Growth in 2025
Source: GlobeNewswire (MIL-OSI)
- Acquisition extends company’s capabilities in wastewater treatment, a key high-growth, sustainable end market
- Enables Ingersoll Rand to provide more comprehensive wastewater treatment solutions, allowing for greater energy efficiency and increased productivity for customers
- Creates opportunities to accelerate topline growth through access to municipal markets
- Attractive purchase multiple of approximately 10x 2024E Adjusted EBITDA
DAVIDSON, N.C., Feb. 03, 2025 (GLOBE NEWSWIRE) — Ingersoll Rand Inc., (NYSE: IR) a global provider of mission-critical flow creation and life science and industrial solutions, has acquired SSI Aeration, Inc. and its subsidiaries (collectively “SSI”) to extend its capabilities in wastewater treatment.

SSI is a global leader in the design and manufacturing of wastewater treatment plant equipment with approximately $30 million in annual revenue. Its product portfolio is focused on innovative and energy-efficient engineered membrane diffusers including fine bubble diffusers, coarse bubble diffusers, and aeration systems. The acquisition will enable Ingersoll Rand to combine several technologies like low pressure compressors with SSI’s aeration offerings to provide a comprehensive, end-to-end solution. With manufacturing facilities in the United States, South Korea, and India, SSI will join the Industrial Technologies and Services segment (IT&S).

“Inorganic growth remains a key part of our company’s overall growth strategy in 2025,” said Vicente Reynal, chairman and chief executive officer of Ingersoll Rand. “We look at potential acquisitions through the lens of how they will help us optimize our solutions, and we look forward to growing our presence in the wastewater treatment market with the addition of SSI.”

About Ingersoll Rand Inc.

Ingersoll Rand Inc. (NYSE:IR), driven by an entrepreneurial spirit and ownership mindset, is dedicated to Making Life Better for our employees, customers, shareholders, and planet. Customers lean on us for exceptional performance and durability in mission-critical flow creation and life science and industrial solutions. Supported by over 80+ respected brands, our products and services excel in the most complex and harsh conditions. Our employees develop customers for life through their daily commitment to expertise, productivity, and efficiency. For more information, visit www.IRCO.com.

Forward-Looking Statements
This news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements related to Ingersoll Rand Inc.’s (the “Company” or “Ingersoll Rand”) expectations regarding the performance of its business, its financial results, its liquidity and capital resources and other non-historical statements. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “forecast,” “outlook,” “target,” “endeavor,” “seek,” “predict,” “intend,” “strategy,” “plan,” “may,” “could,” “should,” “will,” “would,” “will be,” “on track to” “will continue,” “will likely result,” “guidance” or the negative thereof or variations thereon or similar terminology generally intended to identify forward-looking statements. All statements other than historical facts are forward-looking statements.

These forward-looking statements are based on Ingersoll Rand’s current expectations and are subject to risks and uncertainties, which may cause actual results to differ materially from these current expectations. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by such forward-looking statements. The inclusion of such statements should not be regarded as a representation that such plans, estimates or expectations will be achieved. Important factors that could cause actual results to differ materially from such plans, estimates or expectations include, among others, (1) adverse impact on our operations and financial performance due to natural disaster, catastrophe, global pandemics (including COVID-19), geopolitical tensions, cyber events or other events outside of our control; (2) unexpected costs, charges or expenses resulting from completed and proposed business combinations; (3) uncertainty of the expected financial performance of the Company; (4) failure to realize the anticipated benefits of completed and proposed business combinations; (5) the ability of the Company to implement its business strategy; (6) difficulties and delays in achieving revenue and cost synergies; (7) inability of the Company to retain and hire key personnel; (8) evolving legal, regulatory and tax regimes; (9) changes in general economic and/or industry specific conditions; (10) actions by third parties, including government agencies; and (11) other risk factors detailed in Ingersoll Rand’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”), as such factors may be updated from time to time in its periodic filings with the SEC, which are available on the SEC’s website at http://www.sec.gov. The foregoing list of important factors is not exclusive.

Any forward-looking statements speak only as of the date of this release. Ingersoll Rand undertakes no obligation to update any forward-looking statements, whether as a result of new information or development, future events or otherwise, except as required by law. Readers are cautioned not to place undue reliance on any of these forward-looking statements.

Contacts:

Investor Relations:
Matthew.Fort@irco.com

Media:
Sara.Hassell@irco.com

The MIL Network –
February 4, 2025
MIL-OSI USA: ICE operations during week of Jan. 27

Source: US Immigration and Customs Enforcement

February 3, 2025Washington, DC, United StatesEnforcement and Removal

WASHINGTON, D.C. — U.S. Immigration and Customs Enforcement conducted enhanced enforcement operations in Chicago and New York this week with routine daily enforcement occurring around the country, including in Baltimore and Houston. This part of the agency’s effort to arrest criminal aliens with no legal basis to remain in the U.S. Immigration enforcement operations include federal law enforcement partners from FBI, DEA, ATF, CBP and the U.S. Marshals Service in a whole-of-government approach.

Track quarterly ICE arrest, detention and removal statistics

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

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

MIL OSI USA News –

February 4, 2025
MIL-OSI USA: Russian and Uzbek Nationals Charged with Conspiracy to File False Voter Registration Applications

Source: US State of Vermont

A Russian national and an Uzbek national, both residing in Florida, were arrested for their alleged participation in a scheme to submit false and fraudulent voter registration applications to the Pinellas County, Florida, Supervisor of Elections.

According to court filings, Dmitry Shushlebin, 45, a citizen of Russia living in Miami Beach, and Sanjar Jamilov, 33, a citizen of Uzbekistan living in St. Petersburg, conspired to submit 132 fraudulent voter registration applications to the Pinellas County Supervisor of Elections in February and March 2023. These applications were submitted in names other than their own, in envelopes with return and address labels that were identically formatted, including containing the same typographical error, and bore various indicia of fraud including, among other things, repeating dates of birth and addresses and nearly sequential social security numbers. Change of address forms were also submitted to the U.S. Postal Service to route mail to the names and addresses on the fraudulent applications to three locations that Shushlebin and Jamilov allegedly controlled.

Shushlebin and Jamilov are each charged with one count of conspiring to submit fraudulent voter registration applications and give false information in registering to vote. If convicted, each faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Acting Inspector in Charge Steven Hodges of the U.S. Postal Inspection Service (USPIS) Miami Division, and Special Agent in Charge Matthew W. Fodor of the FBI Tampa Field Office made the announcement.

USPIS, FBI, and the Florida Department of Law Enforcement are investigating the case. This case began after a referral from the Florida Department of State, Office of Election Crime and Security.

Trial Attorney Leo J. Wise of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida are prosecuting the case.

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

MIL OSI USA News –

February 4, 2025
MIL-OSI Security: Russian and Uzbek Nationals Charged with Conspiracy to File False Voter Registration Applications

Source: United States Attorneys General 4

A Russian national and an Uzbek national, both residing in Florida, were arrested for their alleged participation in a scheme to submit false and fraudulent voter registration applications to the Pinellas County, Florida, Supervisor of Elections.

According to court filings, Dmitry Shushlebin, 45, a citizen of Russia living in Miami Beach, and Sanjar Jamilov, 33, a citizen of Uzbekistan living in St. Petersburg, conspired to submit 132 fraudulent voter registration applications to the Pinellas County Supervisor of Elections in February and March 2023. These applications were submitted in names other than their own, in envelopes with return and address labels that were identically formatted, including containing the same typographical error, and bore various indicia of fraud including, among other things, repeating dates of birth and addresses and nearly sequential social security numbers. Change of address forms were also submitted to the U.S. Postal Service to route mail to the names and addresses on the fraudulent applications to three locations that Shushlebin and Jamilov allegedly controlled.

Shushlebin and Jamilov are each charged with one count of conspiring to submit fraudulent voter registration applications and give false information in registering to vote. If convicted, each faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, Acting Inspector in Charge Steven Hodges of the U.S. Postal Inspection Service (USPIS) Miami Division, and Special Agent in Charge Matthew W. Fodor of the FBI Tampa Field Office made the announcement.

USPIS, FBI, and the Florida Department of Law Enforcement are investigating the case. This case began after a referral from the Florida Department of State, Office of Election Crime and Security.

Trial Attorney Leo J. Wise of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Daniel J. Marcet for the Middle District of Florida are prosecuting the case.

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

MIL Security OSI –

February 4, 2025
MIL-OSI Asia-Pac: IICA ORGANIZES A CUSTOMIZED THREE DAYS TRAINING AND CERTIFICATION PROGRAMME “ESG FOR BOARD MEMBERS” AT THE UNITED NATIONS REGIONAL OFFICE FOR ASIA AND PACIFIC, BANGKOK, THAILAND

Source: Government of India (2)

IICA ORGANIZES A CUSTOMIZED THREE DAYS TRAINING AND CERTIFICATION PROGRAMME “ESG FOR BOARD MEMBERS” AT THE UNITED NATIONS REGIONAL OFFICE FOR ASIA AND PACIFIC, BANGKOK, THAILAND

PROGRAMME COVERED KEY ASPECTS OF ENVIRONMENTAL-SOCIAL-GOVERNANCE (ESG) CONSIDERATIONS IN BOARD DECISION MAKING AND IMPACT OF CLIMATE CHANGE ON BOARD’S ACCOUNTABILITY

Posted On: 03 FEB 2025 9:53PM by PIB Delhi

The School of Business Environment, Indian Institute of Corporate Affairs (IICA) organized a customized three days residential training and certification programme “ESG for Board Members” from Jan 30 – Feb 01 2025 at the United Nations Regional Office for Asia and Pacific, Bangkok, Thailand. This initiative is inspired by Dr. Ajay Bhushan Prasad Pandey, Director General & CEO, IICA conveying the importance of leadership buy-in for achieving Net-Zero and other relevant sustainability targets by embedding ESG in the corporate strategy aligned with global expectations from multiple stakeholders. The programme was inaugurated by Mr. Gerd Trogemann, Regional Manager, Global Policy Network and Regional Programme, Asia-Pacific, United Nations.

The programme covered key aspects of building a business case of Environmental-Social-Governance (ESG) considerations in Board decision making, it covered aspects of ESG’s Indian as well as global context, guided the participants on how to begin with ESG journey, embedding ESG in to corporate strategy, Impact of climate change and Board’s accountability, designing business models for resilience, Risk mitigation, evolving role of Board in corporate accountability, Stakeholders engagement for ESG success, Governance of CSR and role of Board, Public disclosures on ESG, Business and Human Rights due diligence, effective grievance redressal mechanisms, future trends impacting businesses, and essentials of becoming ESG Impact leaders.

The sessions were delivered by prominent experts and facilitators including Prof. Garima Dadhich, Dr. Harpreet Kaur, Ms Olga Nilova, Mr. Bharat Wakhlu, Ms Belinda Hlatshwayo, Ms Nusrat Khan, and Dr. Ravi Raj Atrey. On the third day, delegation from Thailand based companies presented their ESG journey, best practices and challenges faced in strategizing and implementing ESG, the Indian delegation of public and private companies had a peer learning exposure through this exercise. The programme has benefitted CMDs, Directors, Independent Directors, Board Members, and other sr. leaders from corporate both public and private in the realm of ESG, it provided a unique opportunity to the participants to not only contribute to sustaining businesses in today’s rapidly changing world but also to co-create a collaborative system of exchange of knowledge and ideas at elite level.

IICA enjoys unique distinction of offering a credible six months ESG Professional programme contributing to build a cadre of ESG professionals and Impact leaders. As per the recommendations of the High Level Advisory Committee and keeping in view the needs of Board representatives, this capsule programme was launched by the School of Business Environment-IICA in collaboration with United Nations Development Programme Regional Office for Asia and Pacific.

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MIL OSI Asia Pacific News –

February 4, 2025
MIL-OSI Security: Canadian National Charged With Stealing Approximately $65 Million in Cryptocurrency From Two DeFi Protocols

Source: Office of United States Attorneys

Defendant Exploited Vulnerabilities in the KyberSwap and Indexed Finance Decentralized Finance Protocols to Steal from Investors

An indictment was unsealed today in federal court in Brooklyn charging Andean Medjedovic with wire fraud, computer hacking and attempted extortion for stealing approximately $65 million in cryptocurrency from the KyberSwap and Indexed Finance decentralized finance (DeFi) protocols, which are sophisticated financial platforms residing on cryptocurrency blockchains. Medjedovic is also charged with laundering the proceeds of the theft. He is currently at large.

John J. Durham, United States Attorney for the Eastern District of New York; Antoinette Bacon, Supervisory Official of the Justice Department’s Criminal Division; Harry T. Chavis, Jr., Special Agent in Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI); James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) announced the indictment.

“As alleged, the defendant executed a highly sophisticated scheme to exploit two decentralized finance protocols and steal tens of millions of dollars’ worth of cryptocurrency from investors,” stated United States Attorney Durham. “My Office remains at the forefront in prosecuting cutting-edge cases involving new and emerging technologies, demonstrating our commitment to protecting all financial markets, including the digital assets markets. Criminals like the defendant who take advantage of new technologies to harm investors will be held accountable no matter where in the world they carry out their schemes.”

Mr. Durham expressed his appreciation to the United States Securities and Exchange Commission’s Crypto Assets and Cyber Unit for their valuable assistance during the investigation.

“This was a sophisticated fraud that exploited vulnerabilities in ‘smart contracts’, resulting in the theft of millions of dollars in cryptocurrency,” stated IRS-CI New York Special Agent in Charge Chavis. “It’s alleged that Medjedovic executed a hack that stole nearly $65 million in crypto between two schemes, leaving liquidity pool investors in the red. In investigating this case, IRS-CI New York’s Cyber group worked closely with its federal partners while leveraging resources from IRS-CI’s Cyber Attaché at Europol and the J5 Cyber Group. Even with the complexities of DeFi, we tracked down who is responsible for this large-scale theft, and he is now a wanted man.”

“Hackers can at times be painted in a flattering light by pop culture, some admiring their skills and acumen. They’re stealing money that isn’t theirs, and they’re breaking the laws of this country. We allege Andean Medjedovic violated several of those laws, and he, along with all the other cyber criminals who believe they’re untouchable, will face justice,” stated FBI Assistant Director in Charge Dennehy.

“These charges are a result of HSI New York’s determination to disrupt Andean Medjedovic’s alleged sophisticated far-reaching transnational cybercrime and seek justice for the millions of dollars syphoned from financial platforms,” stated HSI New York Special Agent in Charge Walker. “Our global reach, experience and extensive knowledge of the cyber domain allow us to rapidly develop investigations into bad actors who seek to exploit the cryptocurrency market. Our federal partnerships across the globe made this investigation a success to include support from the HSI attaché offices in the Netherlands.”

KyberSwap and Indexed Finance were developers of automated market-making services called “liquidity pools” that allowed users to swap cryptocurrency tokens with each other. The liquidity pools were managed by computer code called “smart contracts” and relied on investor contributions of cryptocurrency. As alleged, Medjedovic used manipulative trading to exploit vulnerabilities in the KyberSwap and Indexed Finance smart contracts. These manipulative trades enabled Medjedovic to drain approximately $65 million in cryptocurrency that belonged to investors from the KyberSwap and Indexed Finance liquidity pools.

The KyberSwap Exploit

As alleged in the indictment, in 2023, Medjedovic planned and executed a scheme to exploit vulnerabilities in the KyberSwap protocol. KyberSwap was a DeFi protocol and developer of liquidity pools on several public blockchains, including the Ethereum and Arbitrum networks. Liquidity pools use user-contributed cryptocurrency to facilitate trading and market-making in cryptocurrencies. The KyberSwap liquidity pools were managed by computer code or “smart contracts” called automated market makers or “AMMs,” which set prices in the KyberSwap liquidity pools.

In November 2023, Medjedovic exploited vulnerabilities in the KyberSwap computer code to drain the KyberSwap liquidity pools. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrency to create artificial prices in the KyberSwap liquidity pools. Medjedovic then calculated precise combinations of trades that would cause the KyberSwap AMM to “glitch,” in his words, allowing him to steal tens of millions of dollars in cryptocurrency from the liquidity pools. In total, Medjedovic stole approximately $48.8 million in investors’ cryptocurrency from 77 KyberSwap liquidity pools on six public blockchains.

Following the exploit, Medjedovic attempted to extort the developers of the KyberSwap protocol, as well as KyberSwap’s investors and the members of the de-centralized autonomous organization or “DAO” that governed the KyberSwap protocol. Medjedovic demanded control of the KyberSwap protocol and the KyberSwap DAO in exchange for which he would return approximately 50% of the cryptocurrency that he had stolen.

Medjedovic also attempted to launder the proceeds of his theft, including through “bridge” protocols used to transfer cryptocurrency from one blockchain to another, and through a cryptocurrency “mixer” used to conceal the source of digital assets. After one bridge protocol froze several of his transactions, Medjedovic agreed to pay an undercover law enforcement agent posing as a software developer approximately $80,000 to circumvent the bridge protocol’s restrictions and release approximately $500,000 in stolen cryptocurrency.

The Indexed Finance Exploit

As alleged in the indictment, Medjedovic committed a similar exploit of the Indexed Finance DeFi protocol. Indexed Finance liquidity pools are referred to as “index pools,” and function similarly to a mutual fund or exchange-traded fund in traditional finance. Instead of holding a basket of traditional equities, the index pools held an index of digital tokens contributed by users.

In October 2021, Medjedovic used manipulative trading to exploit two Indexed Finance liquidity pools on the Ethereum network. Medjedovic used hundreds of millions of dollars in borrowed cryptocurrencies to distort a process called “re-indexing,” which was used by the Indexed Finance smart contracts to add a new token to the liquidity pools. Medjedovic used the borrowed cryptocurrency to engage in manipulative trading to cause the Indexed Finance smart contracts to set artificial prices during the re-indexing process. He then stole approximately $16.5 million in investor cryptocurrency from the liquidity pools.

Beginning after the Indexed Finance exploit, in or around 2022, Medjedovic conspired with another person to launder the proceeds of his illegal conduct through cryptocurrency exchange accounts that were opened using false information, and by using a cryptocurrency mixer. Among other things, Medjedovic maintained a step-by-step playbook for moving large amounts of cryptocurrency through the mixer, which he titled a “moneyMovementSystem.” In other documents, Medjedovic discussed circumventing “know your customer” or “KYC” procedures and using cryptocurrency exchange accounts opened with false KYC information for “hacks and cashing out.”

The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Business and Securities Fraud and National Security and Cybercrime Sections, with the Justice Department Criminal Division’s National Cryptocurrency Enforcement Team (NCET). Assistant U.S. Attorneys Nick M. Axelrod and Andrew D. Reich of the Eastern District of New York and NCET Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case with assistance from Paralegal Specialists Liam McNett and Madison Bates. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

Valuable assistance was provided by the Justice Department’s Office of International Affairs. The Office thanks the Netherlands’ Public Prosecution Service and the Dutch National Police’s Cybercrime Unit in The Hague and United States Customs and Border Protection, New York Field Office.

The Defendant:

ANDEAN MEDJEDOVIC
Age: 22
Canada

E.D.N.Y. Docket No. 24-CR-529 (NGG)

MIL Security OSI –

February 4, 2025
MIL-OSI Security: Convicted of a Drive-By Shooting and Fentanyl Trafficking, Member of ‘21st and Vietnam’ Crew Sentenced to 161 Months

Source: Office of United States Attorneys

WASHINGTON –Briyon Shuford, 30, of Washington D.C., was sentenced today to 161 months in prison for his participation in a daylight drive-by shooting – while he served as a DC Violence Interrupter — that seriously injured four people. Shuford also was sentenced for his participation in a violent, armed group of drug dealers known as the “21st and Vietnam” crew. The crew distributed significant quantities of crack cocaine, fentanyl, methamphetamine, PCP, and n-n-dimethylpentylone (“boot”) in the area of 21^st Street and Maryland Ave. NE.

The sentence was announced by U.S. Attorney Edward R. Martin, Jr., FBI Special Agent in Charge Sean Ryan of the Washington Field Office’s Criminal and Cyber Division, DEA Acting Special Agent in Charge Ibrar A. Mian of the Washington Division, Special Agent in Charge Troy Springer of the National Capital Region of the U.S. Department of Labor – Office of Inspector General, and Chief Pamela Smith of the Metropolitan Police Department.

Shuford, aka “Breezy,” pleaded guilty on October 31, 2024, to conspiracy to distribute fentanyl, possessing a firearm in furtherance of a drug trafficking crime, and aggravated assault while armed. In addition to the 161-month prison sentence, U.S. District Court Judge Beryl A. Howell ordered Shuford to serve five years of supervised release.

According to court documents, the 21^st and Vietnam crew used an apartment building on the 1900 block of I Street, NE, as a base of operations. The crew ran an open-air drug market around the building and sold narcotics outside on apartment grounds as well as on the first-floor hallway of the building. The sales of crack cocaine, fentanyl, methamphetamine, PCP, and n-n-dimethylpentylone (“boot”) occurred on a near daily basis between at least June 2023 through May 2024 when the crew members were arrested.

On the morning of April 19, 2024, Shuford arrived at the apartment building to meet co-defendant Trevon Palmer. The pair departed in Shuford’s own vehicle and then exchanged it for a stolen Infiniti sedan. Shuford drove the stolen Infiniti to the 1200 block of Mt. Olivet Road NE, Washington, D.C. The men – both armed with firearms –hunted for members of a rival crew. After finding what they believed to be appropriate targets, both Shuford and Palmer opened fire from the vehicle, shooting indiscriminately into the parking lot of the Circle 7 Food and Grocery Mart without regard for innocent bystanders or passing cars. Shuford almost lost control of the vehicle as he opened fire. Shuford and Palmer’s shots injured four individuals.

Shuford was an equal participant in the 21^st and Vietnam crew’s drug activities. He drove co-defendant Damien Jenkins to make a sizable drug sale during which Jenkins sold more than 80 grams of fentanyl. During that sale, Shuford remained nearby in his car, conducting another narcotics sale.

On May 15, 2024, law enforcement arrested Shuford and searched his residence. Law enforcement officers recovered distribution quantities of suspected marijuana, packaging supplies, a Glock 30 firearm, and $12,637 in cash.

This case was investigated by the DEA Washington Division Office, the FBI Washington Field Office, and the MPD. It is being prosecuted by Assistant United States Attorneys Andrea Duvall and Solomon Eppel.

Briyon Shuford uploaded photos to the internet in 2023 of himself carrying firearms.

24cr226

MIL Security OSI –

February 4, 2025
MIL-OSI USA: Canadian Man Charged in $65M Cryptocurrency Hacking Schemes

Source: US State of Vermont

Note: View the indictment here.

A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.

According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.

Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.

Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.

IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation.

Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

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

MIL OSI USA News –

February 4, 2025
MIL-OSI Security: Canadian Man Charged in $65M Cryptocurrency Hacking Schemes

Source: United States Attorneys General

Note: View the indictment here.

A five-count criminal indictment was unsealed today in federal court in New York charging a Canadian man with exploiting vulnerabilities in two decentralized finance protocols to fraudulently obtain about $65 million from the protocols’ investors.

According to court documents, from 2021 to 2023, Andean Medjedovic, 22, allegedly exploited vulnerabilities in the automated smart contracts used by the KyberSwap and Indexed Finance decentralized finance protocols. Medjedovic borrowed hundreds of millions of dollars in digital tokens, which he used to engage in deceptive trading that he knew would cause the protocols’ smart contracts to falsely calculate key variables. Through his deceptive trades, Medjedovic was able to, and ultimately did, withdraw millions of dollars of investor funds from the protocols at artificial prices, rendering the victims’ investments essentially worthless.

Medjedovic also allegedly laundered the proceeds of his fraudulent schemes through a series of transactions designed to conceal the source and ownership of the funds, including through swap transactions, “bridging transactions,” and the use of a digital assets “mixer.” With others, Medjedovic also allegedly schemed to open accounts with digital assets exchanges using false and borrowed identifying information to conceal the source and true ownership of the proceeds. In around November 2023, after executing the KyberSwap exploit, Medjedovic also allegedly attempted to extort the victims of the KyberSwap exploit through a sham settlement proposal, in which he demanded complete control of the KyberSwap protocol and the decentralized autonomous organization that oversaw the KyberSwap protocol in exchange for returning 50 percent of the digital assets that he fraudulently obtained through his scheme.

Medjedovic is charged with one count of wire fraud, one count of unauthorized damage to a protected computer, one count of attempted Hobbs Act extortion, one count of money laundering conspiracy, and one count of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on the unauthorized damage to a protected computer count and 20 years in prison on each of the other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, U.S. Attorney John J. Durham for the Eastern District of New York, Chief Guy Ficco of IRS Criminal Investigation (IRS-CI), Special Agent in Charge William S. Walker of Homeland Security Investigations (HSI) New York, and Assistant Director in Charge James E. Dennehy of the FBI New York Field Office made the announcement.

IRS-CI, HSI, and the FBI New York Field Office are investigating the case, with valuable assistance provided by U.S. Customs and Border Protection’s New York Field Office and the Justice Department’s Office of International Affairs. The Justice Department also thanks the Netherlands’ Public Prosecution Service and Cybercrime Unit — the Hague of the Dutch National Police for their significant assistance with the investigation.

Trial Attorney Tian Huang of the Criminal Division’s Fraud Section, who is a member of the National Cryptocurrency Enforcement Team (NCET), and Assistant U.S. Attorneys Nicholas Axelrod and Andrew Reich for the Eastern District of New York are prosecuting the case. SEC Enforcement Attorney Daphna A. Waxman, formerly a member of the NCET, provided significant assistance.

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

MIL Security OSI –

February 4, 2025
MIL-OSI Security: Hartford Substance Abuse Counselor Sentenced to 27 Months in Prison for Health Care Fraud Schemes

Source: Office of United States Attorneys

Marc H. Silverman, Acting United States Attorney for the District of Connecticut, today announced that on January 31, 2025, THELMA “WENDY” EPPS, 60, of Hartford, was sentenced by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for health care fraud.

According to court documents and statements made in court, Epps was a Licensed Alcohol and Drug Abuse Counselor (LADC) with an office located at 330 Main Street in Hartford. In April 2013, she enrolled as a participating provider in the Connecticut Medicaid program along with an entity affiliated with Epps called Miracles to Destiny LLC. In July 2018, the Medicaid program suspended Epps from participating as a provider in the program based on a finding of a credible allegation of fraud. Medicaid told Epps that any attempt to circumvent her suspension by submitting claims for services performed by Epps or Miracles to Destiny LLC through other agencies or other billing numbers would result in termination of her provider agreement.

In 2019, Epps entered into an agreement with Dennis Tomczak, a Connecticut LADC who was a participating provider in Medicaid. Epps and Tomczak agreed that Tomczak would bill Medicaid using his Medicaid provider number for psychotherapy counseling services purportedly provided by Epps. These claims falsely represented that Tomczak had personally provided the services. In return for Tomczak billing the services, Epps agreed to pay Tomczak 25 percent of the amount Medicaid paid Tomczak. Between approximately April 2019 and November 2022, Medicaid paid Tomczak $330,547.71 for fraudulent claims for services purportedly provided by Epps that were billed under Tomczak’s provider number.

At some point during their scheme, Tomczak expressed concerns to Epps about the number and frequency of services that Epps told Tomczak she was providing. At about this time, Epps entered into a similar agreement with Shawn Tyson, a LADC in Connecticut, whereby Tyson would use his Medicaid provider number to submit claims to Medicaid for services Epps purportedly provided to Medicaid clients.

In November 2019, Epps assisted Tyson with the process of enrolling Tyson as a participating provider in Medicaid. Tyson’s provider application listed the location at which Tyson would provide services as 330 Main Street, Third Floor, in Hartford, the location of Epps’s and Miracles to Destiny LLC’s office. Once Tyson was enrolled as a Medicaid provider, Tyson provided Epps with his login information to the online portal for submitting claims to Medicaid, which Epps then used to submit claims. For a brief period before Tyson was enrolled as a Medicaid provider, unbeknownst to Tomczak, Epps submitted claims through Tomczak’s provider number for services purportedly provided by Tyson, by representing to Tomczak that she had performed these services. Medicaid paid Tomczak a total of $7,879.40 for these services.

During the scheme involving Epps and Tyson, Tyson would provide Epps the names of Medicaid patients and dates that Tyson purportedly provided psychotherapy counseling services to the patients, and Epps would then bill Medicaid for these services using Tyson’s provider number. Epps would also submit claims using Tyson’s provider number for services she purportedly provided to Medicaid patients. These claims falsely represented that Tyson had personally provided the services to the patients.

Epps and Tyson submitted and caused to be submitted claims for hundreds of thousands of dollars of psychotherapy services that neither Epps nor Tyson had actually provided to Medicaid clients. When Epps warned Tyson that he should not bill Medicaid for having provided psychotherapy to patients on holidays, such as July 4 and Thanksgiving, Tyson would typically change the dates of services and resubmit the list of services to Epps.

Medicaid paid Tyson $663,081.32 for claims that falsely represented that Tyson had personally provided services, or falsely represented that services had been provided when, in fact, they were not provided at all.

Judge Dooley ordered Epps to pay $1,001,058.43 in restitution to the Connecticut Medicaid program.

On November 8, 2024, Epps pleaded guilty to health care fraud. Epps, who is released on a $50,000 bond, is required to report to prion on March 3.

Tomczak and Tyson pleaded guilty to related charges and await sentencing.

This investigation was conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation, with the assistance of the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.

The U.S. Attorney’s Office, Connecticut Chief State’s Attorney’s Office, and Connecticut Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

MIL Security OSI –

February 4, 2025
MIL-OSI Security: Serial Fraudster Sentenced to Ten Years in Federal Prison for Stealing Nearly $3 Million and Five Indianapolis Homes

Source: Office of United States Attorneys

EVANSVILLE— James Henley, 35, of Greenwood, Indiana, has been sentenced to ten years in federal prison, followed by three years of supervised release after pleading guilty to aggravated identity theft, conspiracy to commit access device fraud, two counts of money laundering, and eight counts of wire fraud. Henley has also been ordered to pay $1,887,426.63 in restitution.

According to court documents, over the course of three years, Henley orchestrated multiple large and complex fraud schemes, resulting in a total loss of $2,927,758.95 to individual homeowners, an Indiana attorney, a bank, and ten state governments. As part of his fraud schemes, Henley registered five fake businesses (OnTrack Real Estate Solutions, LDI Investments Corp, Lucario Investments, 317 Traffic, and Henley Real Estate Solutions) with the states of Indiana and Kentucky, claiming to serve as the Chief Executive Officer for most of them. None of the businesses were legitimate. Instead, Henley used the businesses to mask his identity, make his schemes appear more credible, and launder the stolen money.

Henley’s schemes are broken down as follows:

COVID-19 Fraud:

Between May 2020 and March 2021, James Henley, his wife Jameka Henley, and his associate Jimmie Bickers used the stolen personally identifiable information of 76 real individuals to submit 120 unemployment insurance applications to ten states during the COVID-19 pandemic. Once the applications were approved, the trio used 65 unemployment insurance debit cards to make purchases at retailers and withdraw cash at ATMs in the Evansville and Indianapolis areas. The states paid a total of $1,119,426.63 in unemployment benefits in connection with the group’s fraudulent applications. In July 2020, Henley used funds withdrawn from ATMs to buy a Chevrolet Camaro for $22,801.

Bickers and Jameka Henley have been formally charged for their roles in this scheme but have not pleaded guilty.

Home Title Fraud:

Between December 2021 and May 2023, Henley stole five homes in Indianapolis by filing fraudulent deeds with the Marion County Recorder’s Office. Through the filings, Henley claimed that the homeowners had sold their homes to his fake businesses, but, in reality, he had never even spoken with the homeowners. Unbeknownst to the victims, Henley filed these fraudulent deeds and then sold the homes for significantly less than their market value, pocketing more than $260,000 in profits.

Henley also attempted to steal and sell an additional 14 homes in Indianapolis and Evansville. With one exception, the individuals who bought the homes from Henley took possession and ultimately kept the homes.

For one homeowner, the property Henley stole was her childhood home. She purchased the home while her mother was in the hospital with the hope that, when her mother’s condition improved, her mother would be able to live out her remaining years in the house.

Mortgage Fraud:

In November 2021, an associate of Henley’s purchased a home in Indianapolis, using a mortgage loan from a bank. In April 2022, Henley filed a fraudulent document with the Marion County Recorder’s Office to make it seem as if the mortgage loan had been paid off, when it had not been paid. Henley then filed a deed naming himself a joint owner of the home. Henley and his associate subsequently sold the property for $255,000, pocketing all the proceeds, even though the bank should have received the majority of the funds.

Auto Loan Fraud:

In March 2023, Henley purchased a Dodge Durango in Indianapolis for $71,479, using an auto loan from Everwise Credit Union. A few months later, in June 2023, Henley purchased a Chevrolet Silverado in Plainfield for $54,270, using a second loan from Everwise Credit Union.

In October 2023, Henley connected a JPMorgan Chase bank account to his auto loans, via Everwise’s online payment portal. Henley falsely represented that the Chase account belonged to Jimmie Bickers, and that he had authority to make payments on his loans using funds from the Chase account.

The Chase account was actually an Indiana attorney’s Interest on Lawyers’ Trust Account (IOLTA), which is a highly regulated bank account used by lawyers to hold client funds. The interest earned on IOLTA accounts is used to fund grants for nonprofit groups that promote pro bono and access to justice programs. Henley did not have the attorney’s permission to access or withdraw funds from the IOLTA account.

Between October and November 2023, Henley used the IOLTA account to make two payments, totaling $98,000, toward his auto loans.

Henley has prior felony convictions for financial crimes, including theft, forgery, and fraud.

“James Henley went to great lengths to coordinate exceptionally greedy, complex schemes that exploited hard-working families and state government programs,” said John E. Childress, Acting U.S. Attorney for the Southern District of Indiana. “Undeterred by prior felony convictions for the same conduct, this defendant stole over a million dollars, wreaking financial and logistical havoc on hundreds of victims. The Department of Justice will continue to work with our law enforcement partners to investigate allegations of fraud and seek prosecution as appropriate.”

“James Henley filed fraudulent unemployment insurance (UI) claims in the names of identity theft victims in order to receive UI benefits to which he was not entitled. He enriched himself by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic,” said Megan Howell, Acting Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to protecting the integrity of the UI system from those who seek to exploit this critical benefit program.”

“This lengthy prison sentence sends a clear message: individuals who attempt to exploit and commit financial crime and identity theft will be brought to justice,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “IRS Criminal Investigation and our fellow law enforcement partners are committed to protecting the integrity of our financial institutions and will continue to hold criminals like James Henley accountable to the fullest extent of the law.”

“This case should serve as a powerful reminder that individuals with a history of financial crimes will face significant consequences when they demonstrate a blatant disregard for the law and continue to exploit and deceive others for personal gain,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI, working alongside our law enforcement partners, will continue to hold those who perpetuate such offenses accountable and protect the public from those who manipulate the system for their own benefit.”

The Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, Department of Labor-Office of the Inspector General, and the Indiana Attorney General’s Office Homeowner Protection Unit investigated this case. The sentence was imposed by U.S. District Judge Matthew B. Brookman.

Acting U.S. Attorney Childress thanked Assistant U.S. Attorney Matthew Miller, who prosecuted this case.

On May 17, 2021, the Attorney General established the COVID‑19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

Anyone with information about allegations of attempted fraud involving COVID‑19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form

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MIL Security OSI –

February 4, 2025
MIL-OSI Security: Shakopee Woman Pleads Guilty in $250 Million Feeding Our Future Fraud Scheme

Source: Office of United States Attorneys

MINNEAPOLIS – A Shakopee 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, at times between October 2020 and January 2022, Mekfira Hussein knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions in federal child nutrition funds. Specifically, Hussein and her husband, Abduljabar Hussein, fraudulently obtained millions of dollars in federal child nutrition program funds by falsely claiming to have served meals to thousands of children per day.

According to court documents, in October 2020, the defendant enrolled her non-profit, Shamsia Hopes, in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future, at the direction of one of its employees, Abdikerm Eidleh. The defendant submitted her application to Aimee Bock, Feeding Our Future’s executive director. In December 2020, and also at the direction of Abdikerm Eidleh, the defendant’s husband registered his company, Oromia Feeds LLC, with the State of Minnesota as a food vendor. Abduljabar Hussein’s company, Oromia Feeds, had a contract to prepare meals to be served by Shamsia Hopes sites run by Mekfira Hussein.

According to the plea agreement entered today, Hussein submitted fraudulently inflated invoices for reimbursement—including inflated meal counts and false attendance rosters. As part of their scheme, the defendant and her husband paid at least $140,000 in kickbacks to Eidleh and least $12,000 in kickbacks to Aimee Bock. In some instances, these kickback payments were disguised as “consulting fees,” when, in fact, neither Eidleh nor Aimee Bock provided any service to justify these payments. In other instances, Feeding Our Future billed hundreds of thousands of dollars in Federal Child Nutrition Program claims under the name of the defendant’s organization, Shamsia Hopes, without the defendant’s knowledge or authorization, and Feeding Our Future siphoned those funds to others involved in the conspiracy.

Throughout the fraudulent conspiracy, the Husseins obtained up to $8.8 million in federal child nutrition program funds some of which they used to pay for personal expenditures unrelated to feeing children. For instance, the defendant and her husband used $173,438 of their proceeds to pay off the mortgage on their home in Shakopee, Minnesota, and also purchased a 2021 Porsche for $93,250, a 2022 GMC truck for $61,722.

Hussein pleaded guilty last Friday in U.S. District Court before Judge Nancy E. Brasel to one count of conspiracy to commit wire fraud. 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.

MIL Security OSI –

February 4, 2025

Category: Intelligence Agencies

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