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Category: Intelligence

  • MIL-OSI Submissions: Environment – Civil Society Groups call on Plastics Treaty negotiators to agree on a text that effectively tackles plastic pollution across its lifecycle

    Source: Global Plastics Treaty

    Oct. 1, 2024 – Nairobi, Kenya—As countries conclude a Head of Delegations meeting today in Nairobi for an international legally binding agreement to end plastic pollution or the Global Plastics Treaty, civil society groups have been uniting their voices and held simultaneous actions to emphasize a call for a strong and effective global plastics treaty and show solidarity with high ambition countries, such as those in the African Group, Group of Latin America and the Caribbean (GRULAC), Pacific Small Island Developing States (PSIDS),  and the Philippines that have been advocating for strong treaty measures.

    The final scheduled plastics treaty negotiations will take place in Busan, Republic of Korea later this year. Since the process started in 2022, civil society groups, alongside Indigenous Peoples representatives and independent scientists have been calling on governments to ensure that the treaty includes legally binding measures that cover the whole life cycle of plastics, including rules and targets on the production and supply of primary plastic polymers to drastically cut plastic production with aims to phase out plastic production.

    “Over 400 million tonnes of plastics are produced every year, suffocating our planet and every living thing on it. Now is not the time to sacrifice ambition and submit to the lowest common denominator: a minority of countries blocking progress for their own short-term gain,” said Ana Rocha, Global Plastics Policy Director of the Global Alliance for Incinerator Alternatives (GAIA). “Indigenous Peoples, waste pickers, and Global South governments on the frontlines of the plastics crisis have long been at the forefront of the solutions, yet their critical voices have been sidelined. The world needs ambition to be aligned with strong means of implementation including a financial mechanism that will provide the necessary financing for action. The intergovernmental negotiating committee must listen to the millions of people around the world demanding a strong treaty to end plastic pollution.”

    The groups also call for the elimination of chemicals that are hazardous to human health and the environment throughout the lifecycle of plastics, as plastics expose people to more than 16,000 chemicals and 4,200 of them are classified as hazardous to people and the environment.

    “A treaty that does not prioritize production reduction of primary plastic polymers (PPP) and eliminate chemicals of concern will only serve to perpetuate plastic pollution and the poisoning of Indigenous and environmental justice communities around the world who have been sacrificed by industry and enabling governments for generations,” said Frankie Orona, Executive Director of Society of Native Nations. “We welcome the common goal of the High Ambition Coalition (HAC) to end plastic pollution by 2040, while reaffirming that no amount of production of PPP is sustainable. The HAC should explicitly support, at minimum, a reduction target of 75% by 2030 if not sooner.”

    Additional demands include the support for reuse systems, a strong, dedicated financial mechanism to facilitate the flow of financial resources from the developed to the developing world, and measures for a just transition to safer and more sustainable livelihoods for workers across the plastic supply chain.  

    “As we reduce plastic production, it is essential we ensure a just transition to reuse and refill systems, which present numerous benefits for people and the environment,” said Marian Ledesma, Zero Waste Campaigner at Greenpeace Southeast Asia – Philippines. “In addition to reducing plastic waste, reuse and refill solutions can decrease greenhouse gas emissions, water consumption and material resource usage. These systems also bring socioeconomic gains for communities through reduced costs and risks arising from plastic pollution.  As integral solutions in ending plastic pollution, we need ambitious reuse and refill targets to be reflected in the treaty alongside reduction targets for plastic production and use.”

    “As we come towards the final round of negotiations, we must not sacrifice ambition for speed. Ambition means both legally binding control measures and finance to help solve the problem,” said Jacob Kean-Hammerson, Ocean Campaigner with the Environmental Investigation Agency (EIA).  “Ending plastics pollution is a generational effort we must undertake as a global community. Global North countries should join calls in the Global South for a new dedicated fund and ensure adequate funding to ensure we have a treaty that truly works.”

    Since the beginning of the INC process, civil society organizations, as well as many governments, have been calling for an open and transparent process that facilitates the widest possible public participation. Instead, observers have been met with limitations that have ranged from caps on attendance, restricted access to negotiations and relevant meetings, and curtailed opportunities to make formal statements. With possibly one last round of negotiations remaining, civil society groups renew their calls for greater transparency and participation in the process to ensure that the demands for a strong and effective plastics treaty are heard.

    “By not including pathways for robust observer participation, meeting organizers are contradicting established international norms and are ignoring and disrespecting the experience, knowledge, expertise, and distinct perspectives of Indigenous Peoples and other frontline and fenceline communities disproportionately impacted by plastic pollution across its life cycle,” said Merrisa Naidoo of GAIA Africa.

    Having a global plastics treaty is a rare opportunity to systematically end plastic pollution through a legally binding international agreement that covers the complexities of the plastic pollution crisis beyond waste management. As UN Member states are expected to wrap up negotiations by December 1st, 2024, in Busan, Republic of Korea, civil society groups will continue to urge governments to deliver a strong treaty that would be effective in truly ending plastic pollution, not a watered-down agreement that fails to holistically address the plastic pollution crisis, for the sake of meeting deadlines.

    About BFFP — #BreakFreeFromPlastic is a global movement envisioning a future free from plastic pollution. Since its launch in 2016, more than 3,400 organizations and 14,000 individual supporters worldwide have joined the movement to demand massive reductions in single-use plastics and push for lasting solutions to the plastic pollution crisis. BFFP member organizations and individuals share the values of environmental protection and social justice and work together through a holistic approach to bring about systemic change. This means tackling plastic pollution across the whole plastics value chain – from extraction to disposal – focusing on prevention rather than cure and providing effective solutions. http://www.breakfreefromplastic.org.

    MIL OSI – Submitted News –

  • MIL-OSI Economics: Joachim Nagel: Interactions between monetary policy, regulation and financial markets

    Source: Bank for International Settlements

    Check against delivery 

    1 Introduction

    Ladies and gentlemen,

    Good morning and welcome to the Conference on Markets and Intermediaries, an event jointly organised by the Bundesbank and the Humboldt-Universität zu Berlin.

    In my opening speech, I will take you on a helicopter tour of the programme and share some thoughts on the topics that will be covered over the next two days. The programme certainly does cover a wide range of topics. It addresses current challenges facing financial markets, financial intermediaries, and central banks.

    Since the Great Financial Crisis, central banks worldwide have expanded their balance sheets, injected additional liquidity into the financial system, and broadened their collateral frameworks. In addition, financial regulation has been adapted to make the financial system more stable.

    While these measures served useful purposes, they also had side effects, not least in money and capital markets. Policymakers and regulators are therefore well-advised to evaluate the effects of their measures.

    2 Non-bank financial institutions

    The first session is dedicated to non-bank financial institutions, or NBFIs.

    This sector includes, amongst others, insurers, investment funds, and money market and hedge funds. It is strongly interconnected, both with other sectors and across countries. Its share of the global financial system, as measured by total financial assets, is almost one-half.

    Clearly, it could be a source of systemic risks. But the risks presented by NBFIs often lie out of view. This makes them more difficult to monitor and assess. All the more important, then, to close data gaps and strengthen the resilience of the sector.

    One particular source of vulnerability are fire sales of open-ended funds. These are the subject of a paper that Rüdiger Weber is presenting this morning.1

    Open-ended funds are especially prone to fire sales because, during episodes of market stress, they often face significant pressure from investors who want to liquidate their holdings quickly. Fund managers may then be forced to offload fund assets at short notice. And if those assets are less liquid, they may have to sell them at lower prices. This may amplify price declines and liquidity shortages.

    Effective liquidity management and regulation are very important here. A recently published Bundesbank paper shows that price-based liquidity management tools help keep the financial fragility of open-ended mutual funds in check.2

    In times of stress, investors also try to protect their capital by shifting it into safer assets. However, this flight to safety can intensify the downward pressure on the prices of riskier assets as demand for the latter declines.

    The Financial Stability Board is doing important work in this field. But it is currently focused on microprudential regulation. I think the FSB’s work on this front needs to be complemented by the development of macroprudential regulation for the NBFI sector.

    In any case, we should not jeopardise what we have achieved in the banking regulation space by allowing stability risks to build up elsewhere in the financial system.

    3 Central bank digital currencies

    The second session is on central bank digital currencies (CBDC).

    CBDC is an issue that is keeping almost all central banks very busy at the moment. The Eurosystem is hard at work preparing for the potential introduction of a digital euro.

    As the world turns increasingly digital, the digital euro would provide a secure and efficient digital payment option that complements cash. It aims to strengthen Europe’s strategic autonomy by building on European infrastructures, and to promote innovation in the private sector.

    However, introducing a CBDC could also have unintended side effects. If bank customers were allowed to hold it in large amounts, periods of banking distress could trigger large, sudden shifts out of deposits into CBDC. This could lead to financial instability.

    And if CBDC were too attractive a substitute for deposits, commercial banks’ access to retail deposits could erode over time. Which could lead to structural disintermediation and call into question our proven two-tier banking system. It is therefore of the essence to design CBDC in a way that prevents these risks from materialising.

    The challenge is to optimise the usability of CBDC as a means of payment while at the same time limiting its effects on the market for bank deposits. Two decisive factors in this regard are remuneration and holding limits. Let me say a few words on each of these.

    Remuneration means the rate of interest on people’s holdings of CBDC. If that rate of interest were positive, holding CBDC would be more attractive. But at the same time, that would lead to outflows out of bank deposits.

    Based on a welfare-maximising model setting, Pascal Paul will argue later this afternoon that central banks should allow for a positive interest rate.3 This stands in contrast to the intention of the Governing Council not to remunerate digital euro holdings.4

    Why are we not in favour of remuneration?

    Because our aim is to make the digital euro a digital complement to cash, and there is no remuneration for holding cash. We neither want to compete with commercial banks for deposits, nor do we want to employ the digital euro as a monetary policy instrument.

    The second, perhaps even more important, factor is holding limits. We intend to limit digital euro holdings to a certain amount, because we want to ensure the digital euro does not lead to large sudden shifts or disintermediation.

    The limits currently under discussion range from €500 to €3,000.5 A recent Bundesbank paper finds that an optimal holding limit would be in a range between €1,500 and €2,500.6 On the Governing Council, we have not yet taken a decision on the exact amount. What is more, EU legislators might be involved here.

    But as regards the practical usability of the digital euro, the exact limit does not play a major role anyway. This is because a reverse waterfall system, as it is called, would allow users to link their digital euro wallet to their bank account. They can then convert their bank deposits into digital euro automatically and instantly if their holdings are insufficient to make a payment.

    4 Banking and deposit flows

    Allowing users to convert an unlimited amount of deposits into CBDC would expose commercial banks to substantial run risk. In any case, zero or lower interest rates will not discourage them from doing that in times of crisis. However, digital bank runs can happen even without CBDC.

    The failure of Silicon Valley Bank and other regional banks in March 2023 showed how quickly customers can withdraw their deposits these days. At Silicon Valley Bank alone, customers pulled out USD 42 billion within the space of a single day, which equated to around one-quarter of total deposits. And another USD 100 billion would have been withdrawn a day later.7 The depositors on the run were apparently account holders with uninsured deposits.

    Banking and deposit flows are the subject of Session 3. Dominic Cucic will present a paper showing that bank customers do indeed redistribute their deposits when deposit insurance limits change.8 Credible and reliable deposit insurance helps to prevent bank runs and preserve financial stability.

    In the euro area, we currently have deposit insurance at the national level. Adding a European layer in the form of a hybrid model would help prevent situations where large shocks overwhelm national deposit insurance systems and lead to cross-border contagion.

    As a European layer should be risk-based, large exposures of banks to individual sovereigns are an issue. Currently, many banks hold a disproportionately large number of bonds issued by their domestic governments. If this were to continue, a common deposit insurance arrangement could lead to a redistribution of sovereign solvency risks.

    In my view, the new EU legislative session provides a good opportunity to move forward on both issues: with a reduction in banks’ exposures to individual sovereigns, and a common European deposit insurance system.

    5 Central bank interventions and market behaviour

    Session 4 of this conference focuses on the impact of central bank interventions on market behaviour. Both papers in this session underline that such central bank measures need to be carefully designed.9

    Central banks have taken a wide range of non-standard monetary policy measures to ensure sufficient monetary stimulus at the effective lower bound. But in the medium to long term, such policies may lead to inefficiencies. These could arise in financial markets themselves or in the allocation of resources affected by the boost to lending.

    This makes it all the more important to evaluate the instruments used and the lessons learned. It is therefore very fitting that we are currently carrying out a strategy review in the Eurosystem. Amongst other things, this will provide an opportunity to critically review the quantitative easing policies we have seen in the past.

    The extensive bond purchases contributed to price stability in an era of low inflation, but they were also associated with numerous side effects in financial markets. Without prejudging the outcome of the review, I think their use should be limited to exceptional circumstances.

    6 Conclusion

    Ladies and gentlemen,

    The conference concludes with a panel discussion on the ECB’s new operational framework. As I have already expressed my views on this on a different occasion,10 I will end my speech by expressing my gratitude.

    Thanks to the organisers from the Bundesbank and Humboldt University for setting up this conference. Thanks to the presenters, discussants and panellists for sharing their insights. Thanks to all participants for their contributions. And special thanks to Annette Vissing-Jørgensen from the Federal Reserve Board, who will give a keynote on “Balance sheet policy above the effective lower bound”.11

    Now I wish you all an exciting conference with valuable insights.

    Thank you very much. 

    MIL OSI Economics –

  • MIL-OSI Economics: Interactions between monetary policy, regulation and financial markets | Video message at the Conference on Markets and Intermediaries

    Source: Bundesbank

    Check against delivery.

    1 Introduction

    Ladies and gentlemen,

    Good morning and welcome to the Conference on Markets and Intermediaries, an event jointly organised by the Bundesbank and the Humboldt-Universität zu Berlin.

    In my opening speech, I will take you on a helicopter tour of the programme and share some thoughts on the topics that will be covered over the next two days. The programme certainly does cover a wide range of topics. It addresses current challenges facing financial markets, financial intermediaries, and central banks.

    Since the Great Financial Crisis, central banks worldwide have expanded their balance sheets, injected additional liquidity into the financial system, and broadened their collateral frameworks. In addition, financial regulation has been adapted to make the financial system more stable.

    While these measures served useful purposes, they also had side effects, not least in money and capital markets. Policymakers and regulators are therefore well-advised to evaluate the effects of their measures.

    2 Non-bank financial institutions

    The first session is dedicated to non-bank financial institutions, or NBFIs.

    This sector includes, amongst others, insurers, investment funds, and money market and hedge funds. It is strongly interconnected, both with other sectors and across countries. Its share of the global financial system, as measured by total financial assets, is almost one-half.

    Clearly, it could be a source of systemic risks. But the risks presented by NBFIs often lie out of view. This makes them more difficult to monitor and assess. All the more important, then, to close data gaps and strengthen the resilience of the sector.

    One particular source of vulnerability are fire sales of open-ended funds. These are the subject of a paper that Rüdiger Weber is presenting this morning.[1]

    Open-ended funds are especially prone to fire sales because, during episodes of market stress, they often face significant pressure from investors who want to liquidate their holdings quickly. Fund managers may then be forced to offload fund assets at short notice. And if those assets are less liquid, they may have to sell them at lower prices. This may amplify price declines and liquidity shortages.

    Effective liquidity management and regulation are very important here. A recently published Bundesbank paper shows that price-based liquidity management tools help keep the financial fragility of open-ended mutual funds in check.[2]

    In times of stress, investors also try to protect their capital by shifting it into safer assets. However, this flight to safety can intensify the downward pressure on the prices of riskier assets as demand for the latter declines.

    The Financial Stability Board is doing important work in this field. But it is currently focused on microprudential regulation. I think the FSB’s work on this front needs to be complemented by the development of macroprudential regulation for the NBFI sector.

    In any case, we should not jeopardise what we have achieved in the banking regulation space by allowing stability risks to build up elsewhere in the financial system.

    3 Central bank digital currencies

    The second session is on central bank digital currencies (CBDC).

    CBDC is an issue that is keeping almost all central banks very busy at the moment. The Eurosystem is hard at work preparing for the potential introduction of a digital euro.

    As the world turns increasingly digital, the digital euro would provide a secure and efficient digital payment option that complements cash. It aims to strengthen Europe’s strategic autonomy by building on European infrastructures, and to promote innovation in the private sector.

    However, introducing a CBDC could also have unintended side effects. If bank customers were allowed to hold it in large amounts, periods of banking distress could trigger large, sudden shifts out of deposits into CBDC. This could lead to financial instability.

    And if CBDC were too attractive a substitute for deposits, commercial banks’ access to retail deposits could erode over time. Which could lead to structural disintermediation and call into question our proven two-tier banking system. It is therefore of the essence to design CBDC in a way that prevents these risks from materialising.

    The challenge is to optimise the usability of CBDC as a means of payment while at the same time limiting its effects on the market for bank deposits. Two decisive factors in this regard are remuneration and holding limits. Let me say a few words on each of these.

    Remuneration means the rate of interest on people’s holdings of CBDC. If that rate of interest were positive, holding CBDC would be more attractive. But at the same time, that would lead to outflows out of bank deposits.

    Based on a welfare-maximising model setting, Pascal Paul will argue later this afternoon that central banks should allow for a positive interest rate.[3] This stands in contrast to the intention of the Governing Council not to remunerate digital euro holdings.[4]

    Why are we not in favour of remuneration?

    Because our aim is to make the digital euro a digital complement to cash, and there is no remuneration for holding cash. We neither want to compete with commercial banks for deposits, nor do we want to employ the digital euro as a monetary policy instrument.

    The second, perhaps even more important, factor is holding limits. We intend to limit digital euro holdings to a certain amount, because we want to ensure the digital euro does not lead to large sudden shifts or disintermediation.

    The limits currently under discussion range from €500 to €3,000.[5] A recent Bundesbank paper finds that an optimal holding limit would be in a range between €1,500 and €2,500.[6] On the Governing Council, we have not yet taken a decision on the exact amount. What is more, EU legislators might be involved here.

    But as regards the practical usability of the digital euro, the exact limit does not play a major role anyway. This is because a reverse waterfall system, as it is called, would allow users to link their digital euro wallet to their bank account. They can then convert their bank deposits into digital euro automatically and instantly if their holdings are insufficient to make a payment.

    4 Banking and deposit flows

    Allowing users to convert an unlimited amount of deposits into CBDC would expose commercial banks to substantial run risk. In any case, zero or lower interest rates will not discourage them from doing that in times of crisis. However, digital bank runs can happen even without CBDC.

    The failure of Silicon Valley Bank and other regional banks in March 2023 showed how quickly customers can withdraw their deposits these days. At Silicon Valley Bank alone, customers pulled out USD 42 billion within the space of a single day, which equated to around one-quarter of total deposits. And another USD 100 billion would have been withdrawn a day later.[7] The depositors on the run were apparently account holders with uninsured deposits.

    Banking and deposit flows are the subject of Session 3. Dominic Cucic will present a paper showing that bank customers do indeed redistribute their deposits when deposit insurance limits change.[8] Credible and reliable deposit insurance helps to prevent bank runs and preserve financial stability.

    In the euro area, we currently have deposit insurance at the national level. Adding a European layer in the form of a hybrid model would help prevent situations where large shocks overwhelm national deposit insurance systems and lead to cross-border contagion.

    As a European layer should be risk-based, large exposures of banks to individual sovereigns are an issue. Currently, many banks hold a disproportionately large number of bonds issued by their domestic governments. If this were to continue, a common deposit insurance arrangement could lead to a redistribution of sovereign solvency risks.

    In my view, the new EU legislative session provides a good opportunity to move forward on both issues: with a reduction in banks’ exposures to individual sovereigns, and a common European deposit insurance system.

    5 Central bank interventions and market behaviour

    Session 4 of this conference focuses on the impact of central bank interventions on market behaviour. Both papers in this session underline that such central bank measures need to be carefully designed.[9]

    Central banks have taken a wide range of non-standard monetary policy measures to ensure sufficient monetary stimulus at the effective lower bound. But in the medium to long term, such policies may lead to inefficiencies. These could arise in financial markets themselves or in the allocation of resources affected by the boost to lending.

    This makes it all the more important to evaluate the instruments used and the lessons learned. It is therefore very fitting that we are currently carrying out a strategy review in the Eurosystem. Amongst other things, this will provide an opportunity to critically review the quantitative easing policies we have seen in the past.

    The extensive bond purchases contributed to price stability in an era of low inflation, but they were also associated with numerous side effects in financial markets. Without prejudging the outcome of the review, I think their use should be limited to exceptional circumstances.

    6 Conclusion

    Ladies and gentlemen,

    The conference concludes with a panel discussion on the ECB’s new operational framework. As I have already expressed my views on this on a different occasion,[10] I will end my speech by expressing my gratitude.

    Thanks to the organisers from the Bundesbank and Humboldt University for setting up this conference. Thanks to the presenters, discussants and panellists for sharing their insights. Thanks to all participants for their contributions. And special thanks to Annette Vissing-Jørgensen from the Federal Reserve Board, who will give a keynote on “Balance sheet policy above the effective lower bound”.[11]

    Now I wish you all an exciting conference with valuable insights.

    Thank you very much.

    Footnotes:

    1. Rzeźnik, A. and R. Weber (2022), Money in the Right Hands, mimeo.
    2. Dunne, P. et al. (2024), Financial fragility in open-ended mutual funds: the role of liquidity management tools, Bundesbank Discussion Paper, No 36/2024.
    3. Paul, P., M. Ulate and J. C. Wu (2024), A Macroeconomic Model of Central Bank Digital Currency, mimeo.
    4. European Central Bank (2023), A stocktake on the digital euro. Summary report on the investigation phase and outlook on the next phase, 18 October.
    5. Balz, B. (2024), Only balances of €500 allowed? What the digital euro is intended to deliver – and what not, Interview with Focus online, 5 June.
    6. Bidder, R., T. Jackson and M. Rottner (2024), CBDC and banks: Disintermediating fast and slow, Deutsche Bundesbank Discussion Paper, No 15/2024.
    7. Congressional Hearing Transcript, Recent Bank Failures and the Regulatory Response, Committee on Banking, Housing, and Urban Affairs, 28 March 2023.
    8. Cucic, D. et al. (2024), Distortive Effects of Deposit Insurance: Administrative Evidence from Deposit and Loan Accounts, mimeo.
    9. Eufinger, C. and Z. Ye (2024), Breaking Bagehot’s Rules: Loan Contracting with Advantageous Central Bank Funding, mimeo; Meisenzahl, R. R. and K. M. Pence, De-Limiting Arbitrage: Evidence from the Term Asset-Backed Securities Loan Facility, mimeo.
    10. Nagel, J. (2024), Reflections on the Eurosystem’s new operational framework, Speech at the Konstanz Seminar on Monetary Theory and Monetary Policy, 16 May.
    11. Vissing-Jørgensen, A. (2023), Balance Sheet Policy Above the ELB, ECB Forum on Central Banking, Sintra.

    MIL OSI Economics –

  • MIL-OSI Security: Pennsylvania Man Sentenced to 25 Years in Prison for Transporting a Minor with the Intent to Engage in Criminal Sexual Activity

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

    SYRACUSE, NEW YORK – John Oathout, age 54, of Harrisburg, Pennsylvania, was sentenced on Friday to 25 years in prison for transporting a minor with the intent to engage in criminal sexual activity.  United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.

    As part of his guilty plea, Oathout admitted that after a romantic relationship ended with the victim’s mother, the victim’s mother permitted the defendant to take her daughter on overnight trips to Virginia and New York.  During the week of Thanksgiving 2021, the defendant arranged to pick up the 5-year-old child from her home in Delaware and transport her to a hotel in Kingston, New York, where he subjected the child to sexual contact. 

    In addition to sentencing Oathout to serve 25 years in prison, Chief United States District Judge Brenda K. Sannes also imposed a 20-year term of supervised release, which Oathout will begin serving after he is released from prison, at which time Oathout will also be required to register as a sex offender.

    The FBI’s Albany Division Child Exploitation and Human Trafficking Task Force investigated this case.  The Task Force includes members of federal, state, and local law enforcement agencies. Assistant United States Attorney Carling Dunham prosecuted the case as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  Project Safe Childhood marshals federal, state, and local resources to better locates, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

    MIL Security OSI –

  • MIL-OSI Security: St. Louis Nonprofit Executive Accused of More Than $2 Million Dollar Student Meal Fraud

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

    ST. LOUIS – The owner of a nonprofit was indicted Wednesday and accused of fraudulently obtaining more than $2 million in funds intended to feed low-income Missouri children, both before and during the coronavirus pandemic.

    Cymone McClellan, 31, of St. Louis, was indicted in U.S. District Court in St. Louis on four felony counts of wire fraud.

    The indictment says McClellan owned and ran a non-profit organization called Sister of Lavender Rose (S.O.L.R.). From about January 2019 to June 2022, McClellan and her nonprofit submitted false and fraudulent meal reimbursement claims to Missouri’s Department of Health and Senior Services (DHSS).  S.O.L.R. submitted reimbursement claims to the Food and Nutrition Programs for Children claiming that she served 860,876 meals to children but only bought enough food and milk to serve fewer than one-quarter of those meals, the indictment says. According to the indictment, McClellan defrauded the State of Missouri out of more than $2 million through her fraudulent reimbursement claims.

    The indictment says McClellan attempted to cover up her crime by providing bogus sign-in sheets to DHSS falsely claiming to have taken the attendance of meal recipients at certain food distribution locations. S.O.L.R. submitted management plans to DHSS falsely asserting that state meal reimbursement dollars were spent only in connection with the provision of meals to low-income children, and that the nonprofit did not use meal money to make purchases over $5,000. The indictment says McClellan spent $60,000 on a down payment on a house in Collinsville, Illinois and also bought five vehicles and a house in Florissant, Missouri.

    One of the addresses where McClellan informed the State of Missouri that she was purportedly preparing food for low-income children belonged to an adults-only nightclub called Elmo’s Love Lounge, the indictment says.

    The indictment seeks the forfeiture of the real estate, as well as a 2021 Chevrolet Traverse, a 2012 Chevrolet Express G3500 van, a 2020 Mercedez-Benz Metris van, a 2012 Ford E350 box truck and a 2018 Lexus RX SUV.

    Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty. The wire fraud charges carry a penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine.

    This case was investigated by the FBI and the U.S. Department of Agriculture Office of Inspector General. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.  

    Anyone with information about pandemic fraud should call the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or report via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    MIL Security OSI –

  • MIL-OSI Security: Ra Medical Systems, Inc. & Physicians Pay Over $8 Million to Resolve False Claims Act Allegations of Illegal Kickbacks

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

    DETROIT – United States Attorney Dawn N. Ison announced today a series of three civil settlements, totaling over $8 million, related to, among other allegations, kickbacks that medical device company Ra Medical Systems, Inc. (Ra Medical), paid to various physicians across the country related to Ra Medical’s DABRA laser.

    Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office. 

    Ra Medical was a medical device company that was formerly headquartered in Carlsbad, California.  From 2017-2019, Ra Medical manufactured and sold a device known as the DABRA Laser.  The settlement with Ra Medical resolves the following alleged violations of the False Claims Act:

    • Ra Medical marketed the DABRA Laser for use in atherectomies, a procedure whereby plaque is mechanically removed from occluded blood vessels in patients suffering from peripheral artery disease. The U.S. Food and Drug Administration, however, had not approved the DABRA Laser for use in atherectomy procedures.
    • Additionally, Ra Medical knowingly marketed the DABRA Laser despite product performance issues causing frequent calibration and overheating problems, which posed a risk to physicians and patients, and prompted a recall in August 2019.
    • Ra Medical also knowingly offered and paid illegal remuneration to certain physicians to induce them to use the DABRA Laser in violation of the Federal Anti-Kickback Statute. The United States contends that the illegal remuneration consisted of cash payments and fees paid in connection with purported training events and consulting services. The United States further contends that RMS tracked utilization of its high-volume physician customers using an internal document titled “Who Deserve[] Love,” which was used to identify physicians that RMS should target with offers of improper remuneration. Two of the recipients of the alleged kickback payments were Elias Kassab, M.D. (Kassab), of Dearborn, Michigan, and David Allie, M.D. (Allie), of Lafayette, Louisiana.

    The Federal Anti-Kickback Statute prohibits offering or paying anything of value to induce referrals of items or services covered by Medicare and other federally funded programs.  The statute is intended to ensure that a medical provider’s judgment is not compromised by improper financial incentives.

    Under the terms of the agreement with Ra Medical, which was entered into pursuant to DOJ’s inability to pay settlement guidelines and was executed in December 2020, Ra Medical paid $2.5 million up front and would pay up to $28 million more if future financial contingencies were met.  In January 2023, Ra Medical paid an additional $5 million, after its reverse merger with Catheter Precision, Inc., triggered one of the contingencies.

    The settlement with Ra Medical remained under seal while the United States continued its investigation into Kassab and Allie, among others, who were alleged to have received improper kickbacks.  In a separate settlement, Kassab and two of his companies agreed to pay $450,000 to resolve the allegations against them.  In the third settlement, Allie and his consulting company agreed to pay $250,000 to resolve the allegations against them.

    “The United States will not allow doctors to hold out their hands expecting to be paid to use and promote a device,” said U.S. Attorney Ison. “The millions of people who depend on our federal healthcare programs deserve and expect medical decisions untainted by kickbacks, and this settlement reflects our commitment to pursuing not just the companies that pay illegal kickbacks, but also the physicians who willingly extract and accept them.”

    “The payment of kickbacks to induce referrals can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work diligently with our law enforcement partners to ensure the appropriate use of taxpayer dollars.”

    “Healthcare services are being unlawfully influenced by medical providers engaging in criminal kickback schemes, significantly impacting programs such as Medicare and Medicaid,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Our office is fully committed to investigating and holding accountable those individuals and organizations involved in illegal profit-driven practices that harm our medical system.”

    “Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Special Agent-in-Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners and the Department of Justice to investigate allegations of healthcare fraud.”

    The civil settlements resolve the claims brought by Robert Gruber, under the qui tam or whistleblower provisions of the False Claims Act.  Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned United States ex rel. Gruber v. Ra Medical Systems, Inc., et al., No. 19-12044 (E.D. Mich.).  The whistleblower will receive a combined $1,722,000 from the three settlements.  The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.

    The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the FBI, and the Defense Criminal Investigative Service.

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  • MIL-OSI Security: Convicted Felon Sentenced for the Second Time in One Year After Failing to Appear in Court While on Supervised Release

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

    Salt Lake City, Utah – Thomas Fairbanks, 71, of Cache County, Utah, was sentenced today to an additional 30 days’ imprisonment for failure to appear in court for a sentencing hearing in a securities fraud case. The one month sentence will be served consecutively to his 27 months’ securities fraud sentence, which was imposed in April 2024. 

    According to court documents and statements made at the change of plea hearing, on May 24, 2023, Fairbanks failed to appear in front of U.S. District Court Judge Jill N. Parrish for his sentencing in a 2019 securities fraud case, after he was convicted by a jury on August 30, 2022. After his failure to appear, a warrant was issued for his arrest, and he was later arrested in February 2024. According to court documents in the 2019 case, the defendant was convicted of a securities fraud scheme in connection with his fraudulent company SupplyLine Partners. As part of the scheme, Fairbanks created a pitch deck to advertise the entity, ran seminars to find investors, and ultimately convinced at least two individuals to invest with him in his fake entity. SupplyLine was never a registered company nor was Fairbanks authorized to sell securities.

    Fairbanks took victims’ money and did not invest as he said he would, never returned the money and did not pay out the promised 6% interest. In total, Fairbanks defrauded two victims out of $270,232.

    The case was investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.

    Assistant United States Attorneys Ruth Hackford-Peer and Kevin Sundwall of the U.S. Attorney’s Office for the District of Utah prosecuted the case. 
     

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  • MIL-OSI Security: Texas Businessman Accused of $1.9 Million COVID Test Kit Fraud

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

    ST. LOUIS – A Texas businessman has been indicted in St. Louis and accused of fraudulently seeking more than $4.5 million from Medicare for COVID test kits and obtaining more than $1.9 million.

    Rashid Naqvi, 51, of the Houston area, was indicted in U.S. District Court in St. Louis on September 4 on four counts of wire fraud conspiracy and one count each of obstruction of a federal audit and conspiracy.

    He appeared in court Wednesday and pleaded not guilty.

    The indictment accuses Naqvi of fraudulently obtaining $1,974,479 from Medicare from March 2023 through September 2024 by billing for numerous COVID-19 test kits that were sent to patients who had never requested them. Many of the patients were dead, the indictment says. Naqvi obtained victims’ Medicare Numbers and identifiers without their knowledge or consent by paying a total of $488,435 in illegal kickbacks to co-conspirators, the indictment says. It says Naqvi used two laboratories that he owned to submit the false claims to Medicare, Elite Diagnostics Inc. in Missouri and Astro Diagnostics Inc. in the Southern District of Texas.

    The indictment says Naqvi attempted to conceal his scheme by disguising kickback payments as payments for COVID test kits, creating a sham contract with one of the companies supplying the information and submitting false documents to Medicare investigators during an audit. He continued submitting false claims to Medicare even after patients called to tell him that they did not request or want the test kits, the indictment says. Naqvi sought a total of $4,579,850 from Medicare.

    Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

    Wire fraud is punishable by up to 20 years in prison, a $250,000 fine, or both. Obstruction of a federal audit and conspiracy are each punishable by up to five years in prison and a $250,000 fine.

    “Today’s indictment reflects our unwavering commitment to safeguarding Medicare and ensuring that its resources are used appropriately,” said Linda T. Hanley, Special Agent in Charge, U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “There are serious consequences for individuals who seek to manipulate federal health care programs by exploiting enrollees’ personal information and participating in illegal kickbacks. HHS-OIG is committed to working with our law enforcement partners to hold those accountable who undermine the integrity of our health care system.”

    The FBI and the U.S. Department of Health and Human Services Office of Inspector General investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case. 

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  • MIL-OSI Security: Former Inkster Mayor Pleads Guilty to Agreeing to Accept $100,000 in Bribes

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

    DETROIT – The former Mayor of the City of Inkster pleaded guilty to bribery, United States Attorney Dawn N. Ison announced today.

    Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

    Patrick Wimberly, 50, of Inkster, served as the Mayor of the City of Inkster, Michigan, from 2019 through 2023. In the spring of 2022, Wimberly demanded $100,000 in cash payments to facilitate the sale of property owned by the City to an outside party (referred to as “Person A”). Over several months, Person A provided Wimberly with monthly cash bribes to secure the purchase of this property. The monthly payments started at $5,000 but the parties agreed to eventually increase that amount. After the initial bribes, Wimberly explained that he was ready to increase the payments. Person A agreed. But when Person A later did not provide the amount Wimberly expected, Wimberly complained that he was due “10$ a month.” Person A then increased the monthly payments to $10,000. In total, Person A provided $50,000 in cash to Wimberly for the purpose of winning the bid for subject property. The Federal Bureau of Investigation intervened before the property could be transferred to Person A.

    The bribery charge, a violation of 18 U.S.C. § 666, carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.

    “Public officials who act in their own best interests, motivated by greed, betray the trust of their communities and the general public,” United States Attorney Ison said. “ We will continue to aggressively prosecute corrupt public officials for their illegal actions.”

    “Investigating public corruption is a primary concern and priority of the FBI in Michigan,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. The former City of Inkster mayor, Patrick Wimberly’s guilty plea is a step forward in reminding public officials that they will be held accountable for their actions and should always operate with the highest level of integrity. Members of the FBI’s Detroit Area Corruption Task Force will continue to investigate any allegations of criminal misconduct from our public officials, in an effort to maintain the public’s trust.”

    The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.

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  • MIL-OSI Security: Dracut Brothers Agree to Plead Guilty to Fraud Scheme Involving Online Sales of Cosmetics

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

    BOSTON – Two men have been charged with, and have agreed to plead guilty to, carrying out a scheme to obtain products of an online cosmetics company through fraud and to resell those products on Amazon and eBay for a profit.

    Brothers Nick Ashtar-Zadeh, 22, and Nika Ashtar-Zadeh, 23, of Dracut, have agreed to plead guilty to one count of wire fraud each. Plea hearings have not yet been scheduled by the Court.

    According to the charging documents, between 2020 and 2021, Nick Ashtar-Zadeh and Nika Ashtar-Zadeh operated Amazon and eBay “stores” that offered various products for sale, including the products of a cosmetics company in Texas. It is alleged that the Ashtar-Zadehs offered the company’s products on these platforms to buyers for one-time payments that were typically equal to or below the company’s list prices for the same products. The Ashtar-Zadehs then enrolled these Amazon and eBay buyers in the company’s 30-day trial program for the same products. The brothers allegedly entered the buyers’ information on the company’s website, without the customers’ knowledge or consent, and caused the company to ship its products to those buyers for a trial period. It is alleged that, for these orders, the Ashtar-Zadehs presented the company with forms of payment that fulfilled initial charges of $19.95 but were declined when the company attempted to charge later installments, after buyers had kept the products past 30 days. The brothers sold the company’s products in this manner to hundreds of buyers on Amazon and eBay, each time pocketing the difference between what the buyers paid them and the initial $19.95 upfront payment to the company. As a result of the alleged conduct, the Ashtar-Zadehs cost the company hundreds of thousands of dollars in losses.

    The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.

    The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
     

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  • MIL-OSI Security: Hammond Man Indicted for Identity Theft

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

    NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ERNEST X. TAYLOR, JR. (“TAYLOR”), age 39, a resident of Hammond, Louisiana, was indicted on September 20, 2024 for identity theft, in violation of Title 18, United States Code, Sections 1028(a)(7) and 1028(b)(1)(D).

    According to court documents, in December 2021, TAYLOR used means of identification belonging to a victim to obtain a $25,000 loan from Collins Community Credit Union.

    Specifically, TAYLOR used identification in the victim’s name, without the knowledge or consent of the victim.  If convicted, TAYLOR faces up to fifteen years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100.

    U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.

    The case was investigated by  the Federal Bureau of Investigation and the United States Secret Service.  Assistant United States Attorney Maria M. Carboni of the Financial Crimes Unit is handling the prosecution.

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  • MIL-OSI Security: Second Child Predator Sentenced to 35 Years in Federal Prison for Sexually Abusing a Child and Drugging Them with Methamphetamine

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

    INDIANAPOLIS—Dustin Scott Cox, 54, of Indianapolis, has been sentenced to 35 years in federal prison, followed by a lifetime of supervised release, after pleading guilty to sexual exploitation of a child and conspiracy to commit sexual exploitation of a child. 

    According to court documents, between at least February and September of 2020, Dustin Cox conspired with Zachary Nichols to sexually abuse and produce sexual images of a fifteen-year-old child. Cox is a repeat child sex offender, convicted in 2004 for coercing a 14-year-old to perform sex acts in exchange for a new bicycle.

    In 2020, Cox was Zachary Nichols’ methamphetamine dealer. Nichols sexually abused the child victim for years. Nichols began allowing Cox to sexually abuse the child as well, in exchange for supplying Nichols with methamphetamine. On multiple occasions, Cox and Nichols recorded their sexual abuse of the victim. The child was nearly incapacitated because of drug use in some of the child sex abuse material that Nichols and Cox created.

    In June of 2024, Zachary Nichols was sentenced to 42 years in federal prison for his role in sexually exploiting and abusing the child.

    “These heinous predators repeatedly sexually abused a child, incapacitated them with meth, and traded the victim’s body for drugs,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Our hearts go out to the survivor of these horrific abuses, and we hope this prosecution brings them some measure of peace. The lifelong trauma inflicted by these sick criminals merits federal prison sentences that will ensure that neither of them ever harms another child. Together with our partners at the FBI and IMPD, our office is committed aggressively prosecuting sex offenders who prey upon our children and removing them from our communities.”

    “Every child deserves to be live and thrive in a safe environment without worry of harm and abuse. This sentence reflects the severity of this heinous offense and should put others on notice that the FBI and our law enforcement partners will continue to hold accountable those who prey on our children,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton.

    The FBI and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney II. Cox has also been ordered to pay $10,000 in restitution to the victim and maintain his sex offender status wherever he lives, works, or goes to school upon release from federal prison.

    U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.

    ###

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  • MIL-OSI Security: Ra Medical Systems, Inc. & Physicians Pay Over $8 Million to Resolve False Claims Act Allegations of Illegal Kickbacks

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

    DETROIT – United States Attorney Dawn N. Ison announced today a series of three civil settlements, totaling over $8 million, related to, among other allegations, kickbacks that medical device company Ra Medical Systems, Inc. (Ra Medical), paid to various physicians across the country related to Ra Medical’s DABRA laser.

    Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office. 

    Ra Medical was a medical device company that was formerly headquartered in Carlsbad, California.  From 2017-2019, Ra Medical manufactured and sold a device known as the DABRA Laser.  The settlement with Ra Medical resolves the following alleged violations of the False Claims Act:

    • Ra Medical marketed the DABRA Laser for use in atherectomies, a procedure whereby plaque is mechanically removed from occluded blood vessels in patients suffering from peripheral artery disease. The U.S. Food and Drug Administration, however, had not approved the DABRA Laser for use in atherectomy procedures.
    • Additionally, Ra Medical knowingly marketed the DABRA Laser despite product performance issues causing frequent calibration and overheating problems, which posed a risk to physicians and patients, and prompted a recall in August 2019.
    • Ra Medical also knowingly offered and paid illegal remuneration to certain physicians to induce them to use the DABRA Laser in violation of the Federal Anti-Kickback Statute. The United States contends that the illegal remuneration consisted of cash payments and fees paid in connection with purported training events and consulting services. The United States further contends that RMS tracked utilization of its high-volume physician customers using an internal document titled “Who Deserve[] Love,” which was used to identify physicians that RMS should target with offers of improper remuneration. Two of the recipients of the alleged kickback payments were Elias Kassab, M.D. (Kassab), of Dearborn, Michigan, and David Allie, M.D. (Allie), of Lafayette, Louisiana.

    The Federal Anti-Kickback Statute prohibits offering or paying anything of value to induce referrals of items or services covered by Medicare and other federally funded programs.  The statute is intended to ensure that a medical provider’s judgment is not compromised by improper financial incentives.

    Under the terms of the agreement with Ra Medical, which was entered into pursuant to DOJ’s inability to pay settlement guidelines and was executed in December 2020, Ra Medical paid $2.5 million up front and would pay up to $28 million more if future financial contingencies were met.  In January 2023, Ra Medical paid an additional $5 million, after its reverse merger with Catheter Precision, Inc., triggered one of the contingencies.

    The settlement with Ra Medical remained under seal while the United States continued its investigation into Kassab and Allie, among others, who were alleged to have received improper kickbacks.  In a separate settlement, Kassab and two of his companies agreed to pay $450,000 to resolve the allegations against them.  In the third settlement, Allie and his consulting company agreed to pay $250,000 to resolve the allegations against them.

    “The United States will not allow doctors to hold out their hands expecting to be paid to use and promote a device,” said U.S. Attorney Ison. “The millions of people who depend on our federal healthcare programs deserve and expect medical decisions untainted by kickbacks, and this settlement reflects our commitment to pursuing not just the companies that pay illegal kickbacks, but also the physicians who willingly extract and accept them.”

    “The payment of kickbacks to induce referrals can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work diligently with our law enforcement partners to ensure the appropriate use of taxpayer dollars.”

    “Healthcare services are being unlawfully influenced by medical providers engaging in criminal kickback schemes, significantly impacting programs such as Medicare and Medicaid,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Our office is fully committed to investigating and holding accountable those individuals and organizations involved in illegal profit-driven practices that harm our medical system.”

    “Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Special Agent-in-Charge Patrick J. Hegarty, DCIS Northeast Field Office.  “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners and the Department of Justice to investigate allegations of healthcare fraud.”

    The civil settlements resolve the claims brought by Robert Gruber, under the qui tam or whistleblower provisions of the False Claims Act.  Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned United States ex rel. Gruber v. Ra Medical Systems, Inc., et al., No. 19-12044 (E.D. Mich.).  The whistleblower will receive a combined $1,722,000 from the three settlements.  The claims resolved by the settlements are allegations only; there has been no determination or admission of liability.

    The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the FBI, and the Defense Criminal Investigative Service.

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  • MIL-OSI Security: Convicted Murderer Sentenced to Life in Prison for Murder of Missing Navajo Woman

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

    PHOENIX, Ariz. – Tre C. James, 31, of Pinon, was sentenced today by United States District Judge Douglas L. Rayes to life in prison on count one and an additional 10 years in prison on count two to run consecutively, for the murder of Jamie Yazzie, a woman classified as a Missing and Murdered Indigenous Person from the Navajo Nation. A federal jury previously found James guilty of First Degree Murder for Yazzie’s death. The jury also found James guilty of several acts of domestic violence committed against three other women, all members of the Navajo Nation. Judge Rayes sentenced James to an additional 10 years in prison to run concurrently, and five years of supervised release for each of those assaults.   

    “Securing justice for missing victims of violence necessitates courage, discipline, and collaboration,” said United States Attorney Gary Restaino. “It also requires all of us to demonstrate our commitment with alacrity: for communities to report their missing loved ones as soon as possible; for victim advocates to engage early and often with next of kin; and for agents and prosecutors to charge cases as soon as they are ready to be charged.”

    “Today’s sentence underscores the fact that Jamie Yazzie was not forgotten by the FBI or our federal and tribal partners,” said FBI Phoenix Special Agent in Charge Jose A. Perez. “Our office is committed to addressing the violence that Native American communities in Arizona face every day and we will continue our efforts to protect families, help victims and ensure that justice is served in each case we pursue.”

    James shot and killed Yazzie on the Navajo Nation in the summer of 2019. He hid her remains on the Hopi Reservation, where they remained concealed for almost three years. Multiple agencies worked together to investigate Yazzie’s disappearance, including the Federal Bureau of Investigation, Navajo Nation Division of Public Safety Criminal Investigation Services, Navajo Nation Police Department, Bureau of Indian Affairs, and Navajo County Sheriff’s Office.

    Investigators faced significant challenges, including the fact that Yazzie had not been reported missing for several days, James had cleaned the crime scene, and the murder occurred while James and Yazzie were home alone together; the global pandemic, which hit the Navajo Nation particularly hard, also presented significant challenges. Investigators persevered and, during the investigation, discovered the assaults against other women, many of which had never been reported to law enforcement.

    The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange and former Assistant U.S. Attorney Sharon K. Sexton, U.S. Attorney’s Office, Phoenix, handled the prosecution. Ms. Yazzie’s mother, father, grandmother and other relatives provided support to the investigation and prosecution over several years.
     

    CASE NUMBER:           CR-22-08073-PCT-DLR
    RELEASE NUMBER:    2024-126_James

    # # #

    For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
    Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

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  • MIL-OSI Security: Federal Agents Seize and Shut Down Royal Inn Hotel in Phoenix Due to Drug Trafficking and Other Unlawful Activities

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

    Owner, Operator, and Corporate Entity Charged with Travel Act violations, Money Laundering, and Maintaining a Drug Premises

    PHOENIX, Ariz. – Today, the Federal Bureau of Investigation and United States Marshal Service, in coordination with the Phoenix Police Department, executed search and seizure warrants at the Royal Inn hotel, located at 2510 West Palo Verde Drive in Phoenix. Federal agents seized control of the hotel and shut down its operations due to widespread prostitution and drug trafficking activities that have gone unabated by its owners and operators.

    Also today, the United States District Court unsealed a 44-count indictment returned by a federal grand jury on September 17, 2024, against the Royal Inn’s owner, operator, and corporate entity, among others. Specifically:

    • Varsha Patel, 56, of Chino Hills, California, the owner of Royal Inn, was charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering. Varsha Patel was also charged with multiple counts of Making False Statements to Obtain a Small Business Administration Loan.
    • Sarang Hospitality LLC, aka Royal Inn, the Arizona corporation through which the hotel does business, was similarly charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering.
    • Nilam Patel, 54, of Phoenix, the live-in operator and day-to-day manager of the Royal Inn, was also charged with two counts of Using a Facility of Interstate Commerce in Aid of Racketeering, one count of Maintaining a Drug Premises, and 34 counts of Promotional Money Laundering.
    • Four other individuals were charged with Distribution of Fentanyl and Methamphetamine for drug dealing at the Royal Inn: Anthony Curtis, 42, of Buckeye; Otis Childers, 31, of Phoenix; Chauntelle Mills, 24, of Phoenix; and Leonardo Guerrero, 49, of Phoenix.

    The indictment alleges that defendants Varsha Patel, Nilam Patel, and Sarang Hospitality LLC, operated the Royal Inn by primarily renting rooms to individuals engaging in prostitution and drug dealing. From 2017 through September 2024, these defendants used the funds they obtained from the Royal Inn room rentals to maintain and promote the Royal Inn’s operations; pay the mortgage on personal property located in Chino Hills, California; fund certificates of deposit; purchase life insurance policies; and pay for their own personal expenses.

    The indictment further alleges that Varsha Patel, Nilam Patel, and Sarang Hospitality LLC were aware that most activities at the Royal Inn were illegal acts of prostitution, drug dealing, and drug using. Over the course of several years, Phoenix Police Department officials repeatedly informed these three defendants of the drug dealing and prostitution activities on the property, of the hundreds of calls for service local police received, and of the need to abate the criminal activities taking place. Despite having been served with multiple abatement letters, these defendants continued to operate the Royal Inn to intentionally facilitate and profit from the criminal activities occurring on the premises. This included: renting rooms to persons who overtly engaged in prostitution, and to persons who distributed illegal drugs; directing the sex workers to attract sex buyers off the property, and to walk separate from the sex buyer while going to the room; directing the sex workers, pimps, and drug dealers to park off the property; alerting sex workers, pimps, and drug dealers of law enforcement presence; failing to request a credit card, together with a government-issued identification, in order to rent a room; failing to evict persons engaged in prostitution and drug dealing, thereby allowing lengthy stays at the Royal Inn without detection; and failing to call the police when criminal activities were occurring.

    A conviction for Using a Facility of Interstate Commerce in Aid of Racketeering carries a maximum penalty of five years in prison and a $250,000 fine. A conviction for Maintaining a Drug Premises carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Promotional Money Laundering carries a maximum penalty of 20 years in prison and a $500,000 fine. A conviction for Making False Statements to Obtain a Small Business Administration Loan carries a maximum penalty of two years in prison and a $250,000 fine. A conviction for Distribution of Fentanyl and Methamphetamine carries a maximum penalty of 20 years in prison and a $1,000,000 fine.

    An indictment is simply a method by which a person or entity is charged with criminal activity and raises no inference of guilt. A criminal defendant is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

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

    The Federal Bureau of Investigation, United States Marshal Service, and Phoenix Police Department conducted the investigation in this case. Assistant U.S. Attorneys Gayle Helart and Patrick Chapman, United States Attorney’s Office, District of Arizona, Phoenix, are handling the prosecution.
     

    CASE NUMBER:           CR-24-01529-PHX-SPL
    RELEASE NUMBER:    2024-127_Patel

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  • MIL-OSI Security: Macon Mother and Son Sentenced for Roles in Decade-Long Business Theft

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

    MACON, Ga. – Two members of the same family who illegally wrote millions in checks to themselves from their employer’s operating account were sentenced to prison and ordered to pay restitution for their crimes.

    Billy Lee Wells, Jr., 47, of Macon, was sentenced to serve 57 months in prison to be followed by five years of supervised release. He was ordered to pay the following jointly and severally with co-defendant Eva Wells: $2,583,003.80 restitution to Phil J. Sheridan Company d/b/a Mid-Georgia Sales and $150,000 restitution due to Donegal Mutual Insurance Company. In addition, he was ordered individually to pay $586,112 to the IRS in restitution and $3,404,772.22 in forfeiture. Eva Rebecca Wells, 75, was sentenced to serve 46 months in prison to be followed by five years of supervised release. She was ordered to pay the above-mentioned restitution amounts with co-defendant Billy Wells and was also ordered individually to pay $586,112 to the IRS and a total of $3,990,884.22 in forfeiture. Both defendants previously pleaded guilty to conspiracy to defraud a financial institution before U.S. District Judge C. Ashley Royal on Jan. 23. Billy Lee Wells also pleaded guilty to making and subscribing a false return. There is no parole in the federal system.

    “The defendants used their position as trusted employees to steal from a small business for more than a decade, a crime that can carry long-term repercussions for all those affected,” said U.S. Attorney Peter D. Leary. “Working with our law enforcement partners, our office will continue to do all we can to both hold fraudsters accountable and protect hard-working and honest citizens.”

    “This case serves as a warning to individuals who commit fraud upon others and the U.S. government that their criminal acts will come with consequences,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents and our law enforcement partners will continue investigating and bringing to justice those who participate in illicit schemes to enrich themselves.”

    “These fraud scams, although not violent, are not victimless and can be devastating to local business and ruin livelihoods,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta’s Macon office. “The FBI is dedicated to working with our partners to hold anyone accountable who would steal from hard working and honest individuals, rather than put in the work themselves.”

    According to court documents in the Wells case, Eva Wells was the Office Manager for Mid-Georgia Sales and was responsible for its finances, including issuing weekly payroll and making other payments on behalf of the business. Her son, Billy Lee Wells, Jr., was also employed at Mid-Georgia Sales, working in IT and sales. In Dec. 2008, Eva Wells began writing unauthorized checks to herself and her son from the company’s general operating fund, as opposed to the account used for payroll. When the theft was discovered, a full accounting was conducted. Between Dec. 31, 2008, and May 10, 2019, Eva Wells wrote a total of $3,404,772.22 in unauthorized checks to Billy Lee Wells, Jr. which were either cashed or deposited in his bank account. In addition to the checks made to Billy Lee Wells, Jr., Eva Wells also wrote unauthorized checks to herself which she cashed or deposited into her bank account.

    The Wells case was investigated by the FBI, the IRS and the Bibb County Sheriff’s Office.

    Assistant U.S. Attorney Elizabeth Howard prosecuted both cases for the Government.

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  • MIL-OSI Security: Six Block Gang Member Faces Minimum of Ten Years in Federal Prison for Armed Drug Trafficking

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

    Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Al’Donta Easterling (26, Jacksonville) has pleaded guilty to conspiracy to distribute and possess with the intent to distribute 100 kilograms or more of marijuana, and possession of a firearm in furtherance of a drug trafficking crime. Easterling faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.

    According to the plea agreement, beginning no later than October 2022 and continuing through July 2024, Easterling was an armed distributor for a drug trafficking organization (DTO) that transported large quantities of marijuana from California to Jacksonville. Easterling and his co-conspirators routinely traveled to California, where they acquired marijuana and smuggled it back to Jacksonville in suitcases on commercial flights or through mail parcels. In Jacksonville, Easterling and his co-conspirators sold marijuana from short-term rental properties. At these residences, Easterling and his co-conspirators routinely carried and possessed firearms to protect themselves, the drugs they distributed, and proceeds from the drug sales. Federal agents seized more than 100 kilograms of marijuana from the DTO during the investigation. On May 22, 2024, detectives from the Jacksonville Sheriff’s Office (JSO) arrested Easterling after finding a pound of marijuana and a loaded Glock pistol in his vehicle. According to JSO, Easterling is a documented member of the Six Block street gang.

    This case was investigated by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, the Clay County Sheriff’s Office, and the Florida Highway Patrol. This case is being prosecuted by Assistant United States Attorneys Aakash Singh and Kirwinn Mike.

    This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks.

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  • MIL-OSI Security: Meriwether County Resident Convicted of Armed Drug Trafficking

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

    COLUMBUS, Ga. – A resident of Meriwether County with several previous felony convictions was found guilty of illegal gun possession and drug trafficking charges following a bench trial this week.

    Howatdrick Jamal Jones, 30, of Woodbury, Georgia, was found guilty of one count of possession of cocaine base with intent to distribute, one count of possession of a firearm during a drug trafficking crime and one count of possession of a firearm by a convicted felon following a bench trial before U.S. District Judge Clay Land that began and ended on Monday, Sept. 23. Jones faces a maximum sentence of life in prison. Sentencing is scheduled for Dec. 12. There is no parole in the federal system.

    “Repeat armed felons tied to violent criminal gangs will find themselves being held accountable at the federal level,” said U.S. Attorney Peter D. Leary. “Law enforcement across the Middle District of Georgia is working closely with our office to bring the most dangerous offenders in our communities to justice and make our communities safer for all.”

    “Guns, drugs and violence are unfortunately all too common tools of the drug trafficking organizations operating in our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “Cases like this clearly demonstrate the resolve of the DEA to hold violent drug traffickers accountable.”

    “I would like to thank all of the law enforcement entities involved for their hard work on this case,” said Waverly Hall Police Chief Jason Durham. “This is another proven example that illegal drugs and guns will not be tolerated.”

    According to the evidence at trial, Jones was stopped by a Waverly Hall Police Department officer on Oct. 16, 2019, after the officer’s automatic license plate reader triggered an alert that the owner of the car had active arrest warrants. The officer smelled marijuana and searched the vehicle, finding cocaine, a digital scale and a razor blade next to the drugs. Jones was concealing a .45 caliber pistol. At the time, Jones had several prior felony drug convictions; it is illegal for a convicted felon to possess a firearm. Jones was convicted of bank robbery on Sept. 20, 2023, in the Superior Court of Pike County, Georgia and is serving a life sentence for his crime.

    This case was investigated by the Drug Enforcement Administration (DEA) and the Waverly Hall Police Department with valuable assistance from the FBI and the Harris County Sheriff’s Office.

    Assistant U.S. Attorneys Christopher Williams and Crawford Seals are prosecuting the case for the Government.

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  • MIL-OSI Security: Nigerian Man Pleads Guilty After Extradition to Participating in Romance Scams and Other Fraud Schemes Targeting Elderly Victims

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

    Damian Williams, the United States Attorney for the Southern District of New York, announced that ISAIAH OKERE plead guilty today before U.S. District Judge Lewis Liman to charges stemming from his participation in an international conspiracy to defraud at least 15 victims of romance schemes, lottery scams, and business email compromise schemes.

    U.S. Attorney Damian Williams said: “Isaiah Okere and his co-conspirators preyed on elderly and vulnerable victims, some of whom lost their entire life savings.  Even though he operated his scams from a country halfway around the world, this Office’s global reach ensures that he will be held accountable in the United States for his crimes.” 

    According to Count One of the Information to which OKERE pled guilty and other statements and submissions made in Court:         

    From at least in or about 2015 up to and including November 2019, OKERE and co-conspirator Timy Hakim conspired with members of the “Black Axe” transnational criminal organization to engage in fraudulent schemes that left at least 15 people and entities with over a million dollars in losses.  OKERE facilitated the laundering of proceeds of three types of fraud schemes, a “Romance Scheme,” a “Lottery Scheme,” and a “BEC Fraud Scheme.” Through the Romance Scheme, a vulnerable individual was led to believe she or he was in a romantic online relationship with a perpetrator of the Scheme when, in fact, the perpetrator merely used this as a mechanism to build the victim’s trust and solicit the victim’s money.  Through the Lottery Scheme, the scheme participants informed certain victims that they had won a cash prize but first needed to make certain payments to access the funds.  Through the BEC Fraud Scheme, the scheme participants induced a corporate victim located in Manhattan to release company funds under fraudulent pretenses by impersonating the founder of the company.

    OKERE used accounts under false identities to communicate directly with his U.S. victims.  He also controlled multiple foreign bank accounts in South Africa that received funds from victims targeted by these schemes.  

    At least 15 individual and corporate victims lost money as part of OKERE, Hakim, and their co-conspirators’ schemes.  They include vulnerable, isolated, and elderly victims who entered into relationships after the deaths of their spouses and, over a period of several years, were induced to drain their entire retirement savings and take out loans from family and friends.  Many victims experienced severe emotional harm, including a woman who reported becoming suicidal after losing her retirement savings to this scheme.

    *                *                *

    OKERE, 42, a citizen of the Republic of Nigeria, was arrested in South Africa on the basis of a provisional arrest warrant in December 2021 and was extradited on August 23, 2024.  He pled guilty today to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison.  

    On September 27, 2023, co-defendant Timy Hakim was sentenced to two years in prison and was ordered to pay $1,414,043 in restitution and forfeit $671,452.

    The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

    Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the South African Department of Justice and Constitutional Development, National Prosecuting Authority of South Africa, and the South African Police Service.  The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the defendant’s extradition from South Africa.

    The criminal case is being prosecuted by the Office’s Illicit Finance and Money Laundering Unit.  Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.

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  • MIL-OSI Security: 200s Gang Member Charged with 2019 Murder of Innocent Bystander

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

    Damian Williams, the United States Attorney for the Southern District of New York, and James Dennehy, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging LUIS FILPO with racketeering conspiracy, murder in aid of racketeering, and murder through the use of a firearm.  These charges relate to FILPO’s alleged membership in a street gang known as “the 200s,” operating in and around upper Manhattan.  As alleged, on January 31, 2019, FILPO and other 200s members shot and killed Roberto Vasquez, an innocent bystander who was mistaken for a gang rival.  FILPO, who was in New York State custody, was transferred to federal custody yesterday and made his initial appearance in federal court in Manhattan.  The case has been assigned to U.S. District Judge Paul A. Engelmayer.

    U.S. Attorney Damian Williams said: “As alleged, Luis Filpo murdered Roberto Vasquez after mistaking him for a gang rival.  Thanks to the hard work of the prosecutors in this Office and our law enforcement partners, Filpo will finally be held to account for this heinous crime. We hope that these charges bring some measure of comfort to Mr. Vasquez’s family and make clear that this Office and our law enforcement partners will never stop investigating those who commit violence on our streets.”

    According to the allegations in the Indictment unsealed yesterday in Manhattan federal court[1] and other court documents:

    From at least in or about 2016 up to and including March 2022, in the Southern District of New York and elsewhere, FILPO was a member of the 200s street gang.  In order to fund the gang, protect its territory, and promote its standing, members of the 200s engaged in, among other things, narcotics trafficking and other acts of violence, including murder.  Members of the 200s sold narcotics in the gang’s territory and engaged in shootings as part of their gang membership.  In particular, on January 31, 2019, FILPO shot and killed Roberto Vasquez, an innocent bystander mistaken for a rival gang member, in the vicinity of 158th Street and Broadway Avenue, in Manhattan, New York.

    *                *                *

    FILPO, 25, of New York, New York, is charged with one count of racketeering conspiracy, which carries a maximum term of life in prison; one count of murder in aid of racketeering, which carries a mandatory minimum term of life in prison or death; and one count of causing death through use of a firearm, which carries a maximum term of life in prison or death.

    The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

    Mr. Williams praised the outstanding investigative work of the FBI and New York City Police Department.

    The case is being handled by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Mathew Andrews and Patrick Moroney are in charge of the prosecution.

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

    [1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation. 

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  • MIL-OSI Security: FBI Houston Seeks Persistent “Plaid Pillager” for Fifth Bank Robbery

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

    HOUSTON, TX—FBI Houston’s Violent Crime Task Force is asking for the public’s help in identifying and locating a man dubbed the “Plaid Pillager” who committed his fifth bank robbery in Houston last week. Crime Stoppers of Houston is offering a reward of up to $5,000 for information leading to the identification and arrest of the robber.

    The most recent robbery occurred at approximately 2:10 p.m. on Friday, September 20, 2024, at the Bank of America located at 5348 Westheimer Road in west Houston. During the robbery, the suspect entered the bank, approached the counter, and handed the teller a threatening note demanding money. He fled the bank with an undisclosed amount of money southbound on foot across Westheimer Road. No one was physically hurt during the robbery.

    Previously, the “Plaid Pillager” robbed the following banks:

    • Wells Fargo Bank located at 11152 South Gessner in southwest Houston on Friday, July 22, 2022
    • Chase Bank located at 10411 Westheimer in west Houston on Friday, February 3, 2023
    • Bank of America located at 5348 Westheimer in west Houston on Friday, February 10, 2023
    • Cadence Bank located at 3754 Westheimer in west Houston on Monday March 6, 2023

    The robber is described as a balding white male in his late 50s, approximately 6’0” tall, with a heavy build and a white stubble beard. During the robbery he wore a blue fishing shirt, blue jeans, sneakers, a medical mask, and a ballcap with the Texans logo. He carried a camo-colored backpack, and upon fleeing the bank he took off his ballcap and mask before putting on sunglasses. A witness stated the suspect had an older black or green tattoo on the left side of his head.

    Photographs of the suspect from the most recent robbery can be found on FBI Houston’s Twitter account.

    Crime Stoppers of Houston, a non-governmental organization, is offering up to $5,000 for information leading to the identification and arrest of this robber. If you have any information, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the FBI Houston Field Office at (713) 693-5000. Tips may also be submitted to Crime Stoppers through their website, http://www.crime-stoppers.org, or the Houston Crime Stoppers mobile phone app which can be downloaded for both iPhone and Android devices. All tipsters remain anonymous.

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  • MIL-OSI Security: Nashville Man Sentenced to 16 Years in Federal Prison for Multiple Armed Robbery and Firearms Convictions

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

    NASHVILLE – Terrell Stevenson, 35, of Nashville was sentenced to 16 years in federal prison today, announced United States Attorney for the Middle District of Tennessee Henry C. Leventis.

    Within 40 minutes on Halloween night 2018, Stevenson robbed a Dollar General Store and a Mapco gas station in Nashville, brandishing a semi-automatic pistol and pointing it at the head of the clerk working at the Dollar General Store. Stevenson and his accomplice were arrested by police officers after fleeing from a traffic stop. Stevenson was charged by a federal grand jury in January of 2020 with two counts of Hobbs Act Robbery, two counts of brandishing a firearm during and in relation to a crime of violence, and one count of possession of a firearm by a convicted felon. He was convicted on all charges following a jury trial in September 2023.

    This case was investigated by the Federal Bureau of Investigation and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Rachel Stephens and Kathryn Risinger prosecuted the case.

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

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  • MIL-OSI Security: Air National Guardsman Pleads Guilty in Murder-for-Hire Scheme

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

    NASHVILLE – Josiah Ernesto Garcia, 23, of Toledo, Ohio, formerly of Hermitage, Tennessee, has pleaded guilty to federal charges after meeting with an undercover FBI agent to finalize a deal to murder an individual for payment, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.

    Garcia pleaded guilty to using interstate commerce facilities in the commission of murder-for-hire.

    According to court records, Garcia needed money to support his family and in mid-February 2023 began searching online for contract mercenary jobs and found the website http://www.rentahitman.com. Originally created in 2005 to advertise a cyber security startup company, the company failed and over the next decade it received many inquiries about murder-for-hire services. The website’s administrator then converted the website to a parody site that contains false testimonials from those who have purported to use hit man services, and an intake form where people can request services. The website also has an option for someone to apply to work as a hired killer.

    Garcia submitted an employment inquiry indicating that he was interested in obtaining employment as a hit man and that he had “military experience, and rifle expertise.” Garcia followed up on this initial request and submitted other identification documents and a resume indicating he was an expert marksman and had been employed in the Air National Guard since July 2021. The resume also provided that Garcia was nicknamed “Reaper” which was earned from military experience and marksmanship. Garcia continued to follow up with the website administrator indicating that he wanted to go to work as soon as possible. 

    An FBI undercover agent spoke with Garcia by phone then met him in person to discuss his application. Both conversations were recorded. The agent then met with Garcia at a park in Hendersonville, Tennessee, and provided him with a target packet of a fictional individual, which included photographs and other information about the individual to be killed, and a down payment of $2,500. After agreeing to the terms of the murder arrangement, Garcia asked the agent if he needed to provide a photograph of the dead body. Garcia was then arrested by FBI agents, who in a subsequent search of his home, recovered an AR style rifle.

    Garcia is scheduled to be sentenced on February 7, 2025. He faces up to 10 years in federal prison.

    This case was investigated by the Federal Bureau of Investigation, Nashville Resident Agency, Memphis Field Office. Assistant U.S. Attorney Brooke K. Schiferle prosecuted the case.

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  • MIL-OSI Security: St. Croix Man Indicted After Threatening to Murder Federal Agents

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

    St. Croix, VI – United States Attorney Delia L. Smith announced today that a federal grand jury returned an indictment charging Jamoi Weekes, 30, of St. Croix, with making threats to assault and murder federal and local law enforcement officers.

    “Heinous threats of violence that target our partners in law enforcement will not be tolerated,” said U.S. Attorney Smith. “Law enforcement officials must be free to perform their duties without fear or intimidation, and as evidenced in the case against Weekes, we will steadfastly prosecute threats against public servants and aggressively seek penalties against those who engage in such abhorrent crimes.”

    According to court documents, on August 31, 2024, Weekes attempted to board a flight at the Henry E. Rohlsen Airport in St. Croix. Weekes was referred to Customs and Border Protection for a secondary inspection before boarding his flight. Weekes then became extremely irate and combative and began threatening to murder and retaliate against the officers if he ever saw them again. Weekes was then determined to be unsuitable to board his flight and was ordered to leave the airport. While exiting the airport, Weekes encountered two Virgin Islands Port Authority officers who he also threatened to murder. Rather than leave the airport, Weekes then followed two Customs and Border Protection officers from the airport terminal to the parking lot and again threatened to murder the officers.

    The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Evan Rikhye.

    United States Attorney Smith reminds the public that an indictment is merely a formal charging document, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: U.S. Attorney and FBI Charge Man for Drive-By Shooting in Zuni

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

    ALBUQUERQUE – A Zuni Pueblo man was charged by criminal complaint with federal firearms violations following a drive-by shooting that occurred on the Pueblo of Zuni Indian Reservation.

    Devin Wyaco, 33, an enrolled member of the Pueblo of Zuni, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled.

    According to the criminal complaint, on September 19, 2024, John Doe and his girlfriend were riding their bikes in Zuni, New Mexico when they noticed a white sedan with tinted windows drive past them, going in the same direction as them. The sedan then did a U-turn and stopped before driving back towards them. As the vehicle passed them, one shot was fired from the passenger side, striking John Doe in his abdomen.

    John Doe was transported via ambulance first to Zuni Hospital, then to University of New Mexico Hospital. When he was later interviewed by investigators, John Doe identified the vehicle as belonging to Wyaco’s girlfriend.

    Investigators executed a federal search warrant on Wyaco’s girlfriend’s residence. There, they spoke to Wyaco’s girlfriend, who stated she had been in the vehicle with Wyaco at the time of the shooting. Wyaco’s girlfriend told investigators that he had fled and was still in possession of the firearm.

    If convicted, Wyaco faces a minimum of 10 years 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 Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Zachary C. Jones is 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.

    # # #

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  • MIL-OSI Translation: Convocation of the Council of Ministers n. 97

    MIL OSI Translation. Region: Italy –

    Source: Government of Italy

    September 26, 2024

    The Council of Ministers is convened on Friday 27 September 2024, at 11.00 am at Palazzo Chigi, to examine the following agenda:

    DRAFT DECREE-LAW: Urgent provisions on the entry of foreign workers into Italy, protection and assistance to victims of gang-mastering, as well as management of migratory flows and international protection (PRESIDENCY – INTERNAL AFFAIRS – JUSTICE – LABOUR AND SOCIAL POLICIES); DRAFT DECREE-LAW: Urgent measures to combat violence against healthcare professionals in the exercise of their functions as well as damage to goods intended for healthcare (PRESIDENCY – JUSTICE – HEALTH); DRAFT BILL: Ratification and implementation of the Cooperation Agreement between the Government of the Italian Republic and the Government of the Republic of Côte d’Ivoire on migration and security, made in Abidjan on 22 March 2023 (FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION – INTERNAL AFFAIRS); DRAFT BILL on the safety of underwater activities (PRESIDENCY – CIVIL PROTECTION AND MARINE POLICIES); DRAFT BILL: Provisions for the exercise of trade union freedom by personnel of the armed forces and military police forces, as well as the extension of the delegation referred to in Article 9, paragraph 15, of Law No. 46 of 28 April 2022 (PUBLIC ADMINISTRATION – DEFENSE); DRAFT LEGISLATIVE DECREE: Supplementary and corrective provisions to Legislative Decree No. 149 of 10 October 2022, containing “Implementation of Law No. 26 November 2021”. 206, delegating the Government for the efficiency of the civil process and for the revision of the rules on alternative dispute resolution tools and urgent measures to streamline procedures in matters of the rights of individuals and families as well as in matters of forced execution” – SECOND PRELIMINARY EXAMINATION (JUSTICE); UPDATE of the medium-term budget structural plan draft, referred to in Chapter IV of Regulation (EU) 2024/1263 (ECONOMY AND FINANCE); REGIONAL LAWS; MISCELLANEOUS.

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

    MIL Translation OSI

  • MIL-OSI USA: Gosar Introduces Legislation to Sue Big Pharma for Vaccine Injuries

    Source: United States House of Representatives – Congressman Paul A Gosar DDS (AZ-04)

    Washington, D.C.  — Congressman Paul A. Gosar, D.D.S. (AZ-09), issued the following statement after introducing H.R. 9828, the End the Vaccine Carveout Act, a bill that would strip vaccine manufacturers of their unjust liability shields. This carveout has resulted in hundreds of billions of dollars in profits for Big Pharma while leaving tens of thousands of people without the ability to seek legal justice and compensation for injuries caused by vaccines. 

    “Although federal bureaucrats and Big Pharma insist that vaccines are safe, there is an unfortunate lack of science regarding the safety of vaccines.  For example, a review of 12,000 scientific papers by the Institute of Medicine published in 2012 found that 98% of injuries studied were either caused by or may have been caused by a vaccine.  Another government study found that while vaccines caused injuries in 10 percent of cases, only one percent get reported, meaning those injured by vaccines are vastly undercounted.

    Furthermore, according to the Center for Disease Control’s Vaccine Adverse Event Reporting System, nearly 20,000 Americans were reported as having been killed to date by a COVID-19 vaccine, equating to one death for every 14,000 people vaccinated, much higher than the one in a million deaths that is normally cited for dangerous vaccines.

    Government bureaucrats and scientists responsible for approving vaccines are in bed with Big Pharma, often owning pharmaceutical stocks, serving as consultants and receiving lucrative contracts from pharmaceutical companies that pressure them to produce favorable results which is in direct violation of federal law.

    Worse, many scientists and researchers in government agencies develop patents for vaccines that are approved by the very agencies they work for, creating a conflict of interest and raising serious questions about the impartiality of their decisions.

    Under current law, it is nearly impossible to hold vaccine manufacturers liable for injuries caused by vaccines due to a 1986 law that unfairly created a special immunity carveout for Big Pharma, making it very difficult for vaccine-injured victims to win in a court of law. 

    My legislation strips away current immunity provisions unfairly shielding Big Pharma from the harms caused by their products and allows those injured by vaccines to pursue a civil lawsuit in state or federal court.  Big Pharma doesn’t deserve a get-out-of-jail-free card for injuries caused by their harmful vaccines,” concluded Congressman Gosar.

    Children’s Health Defense Founder and Chairman of the Board on Leave Robert F. Kennedy Jr, said: “The four American vaccine makers are criminal enterprises that have paid tens of billions in criminal penalties over the past decade.  By freeing them from liability for negligence, the 1986 statute removed any incentive for these companies to make safe products.  If we want safe and effective vaccines, we need to end the liability shield.”

    Children’s Health Defense President Mary Holland added: “Thank you to Congressman Gosar for introducing this historic and urgently needed legislation.  For over 35 years, parents of children injured and killed by government-recommended vaccines have been left with no meaningful redress — only a complex, sham compensation program that pits grieving families against the government, while Big Pharma enjoys no liability. During that same time, chronic health conditions in children – autism, ADHD, severe allergies, asthma – have skyrocketed. This legislation will help to end Big Pharma’s reign over government. The corrupt public-private partnership of the 1986 National Childhood Vaccine Injury Act has suppressed science, stacked the deck against families, subverted the democratic marketplace of checks and balances, and removed citizens’ rights to a trial by jury. Americans deserve better.”

    Background:

    In 1986, Congress passed the National Childhood Vaccine Injury Act (NVCIA), which shields vaccine manufacturers from the harm caused by their products, making it almost impossible for a person injured by a vaccine to win in court.  The plaintiff must prove that the vaccine manufacturer deliberately “[withheld] information relating to the safety or efficacy of the vaccine,” engaged in “criminal or illegal activity relating to the safety and effectiveness of vaccines,” or “by clear and convincing evidence… failed to exercise due care.” Satisfying these requirements is practically an impossibility.   

    The Centers for Disease Control (CDC) and the National Institutes of Health (NIH) are tasked with approving vaccines.  Sadly, there exists a massive conflict of interest, since the scientists who work at these agencies license the patents to vaccine manufacturers and, in so doing, earn up to $150,000 in royalties. Furthermore, voting members on the boards that advise the CDC and the NIH owned stocks in vaccine manufacturers, engaged in contract work for vaccine manufacturers, and received grants from vaccine manufacturers.

    Current cosponsors (30): 

    Representatives Andy Biggs, Lauren Boebert, Josh Brecheen, Tim Burchett, Eric Burlison, Mike Collins, Eli Crane, Warren Davidson, Byron Donalds, Matt Gaetz, Bob Good, Marjorie Taylor Greene, Harriet Hageman, Andy Harris, Clay Higgins, Ronny Jackson, Anna Paulina Luna, Nancy Mace, Thomas Massie, Mary E. Miller, Cory Mills, Barry Moore, Troy E. Nehls, Ralph Norman, Andy Ogles, Bill Posey, Chip Roy, Keith Self, Victoria Spartz, Randy K. Weber Sr.

    Outside Group Support: 

    American Family Project, Children’s Health Defense, React19

    MIL OSI USA News –

  • MIL-OSI USA: Governor Ron DeSantis Issues Updates on Preparedness Efforts Ahead of Hurricane Helene

    Source: US State of Florida

    TALLAHASSEE, Fla.—Today, Governor Ron DeSantis was joined by Major General John D. Haas, Florida Division of Emergency Management (FDEM) Executive Director, and Florida Department of Transportation Secretary Jared Purdue at the State Emergency Operations Center to provide updates ahead of landfall of Hurricane Helene. As of 8:00 am ET, Hurricane Helene’s maximum sustained winds have increased to 100 mph with higher gusts, making it a Category 2 hurricane. Additional strengthening is forecast, and Helene is expected to be a major hurricane when it reaches the Florida Big Bend coast tonight. Sixty-eight shelters are open throughout the state in preparation for severe impacts from Hurricane Helene, including 2 state-operated shelters in Tallahassee and DeFuniak Springs. These shelters have are housing over 2,500 residents from areas that may be severely affected by Hurricane Helene.

    Governor DeSantis issued Executive Order 24-209 on September 24, updating EO 24-208 and declaring a state of emergency for 61 counties. This allows state officials to make critical resources available to communities ahead of any potential storm impacts.

    Following Governor DeSantis’ request, FEMA approved the state’s pre-landfall disaster declaration request. This provides important federal resources and assistance, including personnel, equipment, and supplies, and makes available funding sources for emergency protective measures. The pre-landfall declaration request is for the 41 Florida counties included in Executive Order 24-208.

    Voluntary and mandatory evacuation orders are in effect in multiple counties statewide. Residents need to evacuate if they are under a mandatory evacuation order. Counties under evacuation orders can be found at FloridaDisaster.org/EvacuationOrders.

    Residents in the big bed area needing assistance finding or going to a shelter in the Big Bend region for Hurricane Helene can call (800) 729-3413. FDEM team members are conducting callbacks from messages received last night and accepting new calls today to facilitate shelter coordination. For additional resources and assistance, residents can call the State Assistance Information Line (SAIL) at (800) 342-3557. Assistance is available in English, Spanish, and Haitian-Creole.

    Watches and warnings in effect include:
    Hurricane Warning: Western Alachua, coastal Citrus, Columbia, Dixie, Franklin, Gadsden, Gilchrist, Gulf, Hamilton, coastal Hernando, Jefferson, Lafayette, Leon, Levy, Liberty, Madison, western Marion, coastal Pasco, Suwannee, Taylor and Wakulla counties
    Hurricane Watch: Inland Citrus, inland Hernando, coastal Hillsborough, coastal Manatee, inland Pasco, Pinellas, coastal Sarasota
    Tropical Storm Warning: Central and eastern Alachua, Baker, Bay, Bradford, Brevard, Broward, Calhoun, Charlotte, inland Citrus, Clay, Collier,  DeSoto, Duval, Flagler, Glades, Hardee, Hendry, Highlands, inland Hernando, Hillsborough, Holmes, Indian River, Jackson, Lake, Lee, Miami-Dade, Monroe (including Florida Keys and Dry Tortugas), Manatee, central and eastern Marion, Martin, Nassau, Okeechobee, Orange, Osceola, Palm Beach, inland Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Union, Volusia, Walton, Washington
    Storm Surge Warning: Charlotte, Citrus, Collier, Dixie, Franklin, Gulf, Hernando, Hillsborough, Jefferson, Lee, Levy, Manatee, Monroe, Pasco, Pinellas, Sarasota, Taylor and Wakulla counties

    To learn more, residents can visit FloridaDisaster.org/Guide.  For updates on county resources available visit FloridaDisaster.org/Counties for a list of all 67 county emergency management contacts.

    State Preparedness Efforts

    • The Florida Division of Emergency Management (FDEM) activated the State Emergency Operations Center to Level 1 on Tuesday, September 24, and is leading coordination efforts for the State Emergency Response Team.
    • The State Emergency Response Team is engaged in over 1,150 missions to assist counties in their preparation efforts. These missions accomplish vital tasks like staging response resources, protecting critical infrastructure facilities like hospitals and utility stations, and coordinating personnel statewide.
    • There are 35,000 shelf-stable meals staged near the anticipated area of storm impact, ready to deploy for response.
    • Seven Urban search and rescue task forces are ready to deploy.
    • The Florida National Guard (FLNG) has mobilized nearly 3,500 Soldiers and Airmen in preparation for Hurricane Helene and can surge to 5,500 if needed.
    • The FLNG is postured to provide logistics support, law enforcement support, route clearance, search and rescue, commodity distribution, flood mitigation, aviation and other support as needed by the state.
    • The Florida State Guard (FSG) has prepared the following:
      • 250+ Soldiers ready to deploy.
      • 10 shallow water vessel boat teams
      • 7 flat-bottom-flood rescue skiffs
      • 2 amphibious rescue vehicles
      • 12 UTV’s
      • 15 Cut and toss crews
      • 7 search and rescue teams
      • 2 UH-60 Blackhawk for daytime aerial assessment and logistics missions
    • The Florida Department of Law Enforcement (FDLE) has positioned all assets, including aircraft, and is ready to respond for reconnaissance and damage assessments, including all backup satellite and communications systems. Portable towers have been staged for emergency communications.
    • FDLE is prestaging Telecommunication Emergency Response Taskforces for response to ensure continuity of service of the 911 system.
    • FDLE’s Criminal Justice Information Services received permission from the FBI to allow law enforcement agencies to perform criminal history queries on behalf of emergency shelters to determine the suitability of shelter staff who may care for vulnerable populations (children, the elderly, the disabled).
    • Nearly 2,000 Florida Department of Transportation (FDOT) team members work directly on storm response.
    • FDOT encourages drivers to download the FL511 app or visit FL511.com for road and bridge closures and potential detours that may be activated. Remember to always follow the direction of local law enforcement and emergency personnel.
    • FDOT issued an Emergency Order on September 23, lifting weight restrictions and allowing emergency response vehicles, including utility vehicles staging for rapid response, to bypass weigh stations.
    • FDOT Statewide Preparedness Efforts Include:
    • Road Ranger Service has expanded service to 24 hours in the storm impact areas.
      • 890 team members conducting pre-storm preparations.
      • 613 team members working in the field conducting pre-storm preparations.
      • 245 pieces of heavy equipment are being used for pre-storm preparations.
      • 307 team members staged for cut and toss operations
      • 120 bridge inspectors staged for deployment
      • 43 team members staged for UAV (drone) deployment
      • 40 large pumps staged
      • 688 generators staged to assist with traffic signal power
      • 4 ITS trailers are staged.
    • Seaports:
      • Port Key West, Panama City, Port St. Joe, Tampa Bay, SeaPort Manatee, Port St. Pete, Port of Fernandina, JAXPORT, and Port Canaveral are closed waterside.
    • Airports: Some flight cancellations or delays are being reported. Check with airlines directly on specific flight updates. The following airports have suspended service:
      • Tallahassee International Airport (TLH)
      • Tampa International Airport (TPA)
      • St. Pete-Clearwater International Airport (PIE)
    • Railroads:
      • Amtrak: Silver Star and Silver Meteor routes (New York to Miami) will terminate in Jacksonville
      • Amtrak: Silver Star and Silver Meteor routes (Miami to New York) will originate in Jacksonville
      • SunRail service has been suspended.
    • Freight Rail:
      CSX will limit operations in the Tampa area.
    • Florida Gulf & Atlantic will shut down operations except the Pensacola area.
    • Apalachicola Northern and BayLine have suspended operations
      • First Coast Railroad will shut down operations on 9/27 .
    • The following transit providers have made the following schedule modifications.
      • Service Suspended: Lakeland Area Mass Transit (Citrus Connection), Manatee County Area Transit, Sarasota County Area (Breeze) Transit, Lee County (LeeTran), Charlotte County, Jacksonville Transit Authority (JTA) Skyway and St. Johns River Ferry, St. Johns County (Sunshine Line), Bay County (Bayway), StarMetro, Big Bend Transit, Wakulla County Transit, Jackson County (JTrans), Calhoun County Transit, Liberty County Transit, Gulf County ARC suspending, LYNX, Marion County Transit, Key West Lower Key Shuttle, Hillsborough County (HART), Pasco County, Hernando County (The Bus)
    • The Florida Department of Veterans’ Affairs (FDVA) The VISN 8 Clinical Contact Center is operational 24/7/365 for virtual care and tele-emergency care and support to Veterans enrolled for VA Health Care in Florida. 1-877-741-3400. Visit https://department.va.gov/integrated-service-networks/visn-08 for more information.
    • Department of Management Services (DMS) is working to identify potential evacuation shelter sites for special needs and pet-friendly evacuees as far east as Lake City and west as Panama City.


    Health and Human Services

    • The Agency for Persons with Disabilities (APD) is tracking APD-licensed group homes in impacted areas to ensure client safety from Hurricane Helene. APD will provide necessary guidance for re-entry when it is appropriate to do so.
    • The Florida Department of Health’s (DOH) is deploying over 135 emergency response vehicles. Staging is currently in Leon, Liberty, Osceola, and Pinellas counties.
    • DOH has prepared for Special Needs Shelter operations to begin in areas of Helene’s path. A press release has been sent statewide for additional information on special needs shelters. To find a shelter near you, please visit the county emergency management page here.
    • DOH and the Agency for Health Care Administration have initiated Patient Movement Mission to support medical transport and evacuations of health care facilities.
    • The State Surgeon General signed Emergency Order 24-002, which:
      • Waives competitive procurement requirements in order to procure commodities, goods, and services expeditiously in response to the emergency.
      • Permits emergency medical transportation services to operate across county lines.
      • Permits Paramedics, Emergency Medical Technicians, and Medical Directors, as defined by Chapter 401, Florida Statutes, licensed in other U.S. states, territories, or districts to practice in Florida in response to the emergency without penalty.
      • Authorizes a reporting extension for the Prescription Drug Monitoring Program.
      • Authorizes an extension of the upcoming licensure renewal deadlines for Nursing Home Administrators, Radiological Personnel, and Athletic Trainers until October 31, 2024.
    • DOH and the Office of Insurance Regulation (OIR) sent information regarding early prescription refills permitted under Executive Order 24-209. This information was sent to the public, health insurers, managed care organizations, pharmacy benefit managers, pharmacy chains, and health care providers.
    • The Agency for Health Care Administration (AHCA) has activated reporting in the Health Facility Reporting System (HFRS) and has requested that all health care providers report their census, available beds, evacuation status, and generator status information. This information allows AHCA to assist health care providers in transferring patients if needed and ensure that health care providers in impacted areas have the necessary resources and adequate power.
    • AHCA made 537 provider calls for Hurricane Helene preparation ahead of landfall.
    • As of this morning, 80 health care facilities are reporting that they are evacuating.
      • 38 assisted living facilities
      • 26 nursing homes
      • 8 hospitals
      • 4 residential treatment facilities
      • 2 residential treatment centers for children and adolescents
      • 1 adult family care home, and 1 intermediate care facility for developmentally disabled
    • 100% of operating long-term care facilities have a generator on-site. The Generator Status Map for long-term care facilities is available here.
    • The Agency has waived all prior authorization requirements for critical Medicaid services until further notice.

    Infrastructure, Roads and State Closures

    • The Florida Highway Patrol (FHP) is assisting the Florida Department of Corrections with the evacuation of correctional facilities as needed.
    • FHP is assisting with evacuations in Taylor County and in Cedar Key in Levy County.
    • FHP is removing any abandoned or disabled vehicles left along roadways ahead of storm arrival.
    • FHP cut teams, along with FDOT road clearing teams, are staged and ready for post-storm deployment to provide aid to areas impacted by the storm.
    • Florida Department of Highway Safety and Motor Vehicles (FLHSMV) issued Emergency Order 24-05, in support of Executive Order 24-209 which: waives specific requirements for commercial motor vehicles providing emergency relief; and waives the replacement fees for driver’s license and identification credentials, vehicle registrations and titles, vessel registrations and titles and temporary parking permits for impacted individuals.
    • The Department of Children and Families (DCF) is working with the Community-Based Care Lead Agencies to contact foster families and group home providers to ensure preparedness. Two group homes are evacuating to safer locations.
    • DCF has contacted all licensed providers in potentially impacted areas to ensure disaster preparation plans are in place and unmet needs have been addressed.
    • The Department of Elder Affairs (DOEA) contacted all Area Agencies on Aging partners to receive updates on their ongoing preparation efforts and gather the status of any unmet needs.
    • The Florida Department of Education (FDOE) has been in contact with all school districts and state colleges and is ready to provide assistance immediately following Hurricane Helene. Currently, 68 school districts have announced closures in addition to 25 State Colleges and 11 Universities. For more information on school closures, visit fldoe.org/storminfo.
    • In preparation for Hurricane Helene. Currently, 65 school districts have announced closures in addition to 22 State Colleges and 9 Universities. For more information on school closures, visit fldoe.org/storminfo.
    • Following the issuance of the Governor’s Executive Order 24-209, the Florida Department of Environmental Protection (DEP) issued an Emergency Final Order allowing for the activation of disaster debris management sites to store and process storm-generated solid waste and debris.
    • DEP published a storm updates webpage to keep state park visitors updated of closures: FloridaStateParks.org/StormUpdates. Visitors with existing camping and cabin reservations at closed parks have been notified of their reservation status.

    Resources for Employees, Businesses and Consumers

    • The Florida Department of Business and Professional Regulation (DBPR) has partnered with the Florida Restaurant and Lodging Association to encourage more than 71,000 Florida-licensed lodging establishments to relax pet policies and waive pet fees for evacuees.
    • Through this effort, anti-price gouging information and emergency accommodations resources have also been provided.
    • DBPR has proactively communicated with more than 137,000 restaurant and lodging licensees to provide storm preparation and food safety resources.
    • The Florida Disaster Contractors Network has been activated to connect homeowners with licensed contractors and suppliers to perform emergency repairs.
    • DBPR encourages Florida’s licensed contractors who provide post-storm construction-related services to register with its Florida Disaster Contractors Network at DCNOnline.org.
    • FloridaCommerce has activated the private sector hotline at (850) 815-4925, open daily 8:00 a.m. to 5:00 p.m. Inquiries may also be emailed to ESF18@em.myflorida.com.
    • Updates on business closures and business resources are consistently being updated at FloridaDisaster.biz/CurrentDisasterUpdates.
    • VISIT FLORIDA has activated Emergency Accommodation Modules on Expedia and Priceline to provide real-time hotel availability and lodging resources for impacted Floridians and visitors.
    • Sandestin Golf and Beach Resort has crafted special offers for Evacuees and First Responders in need of accommodations during an evacuation. Please see the linked pages below for more information.
    • Rosen Hotels & Resorts activated its Florida Resident Distress Rates* for residents in the 61 counties where Governor Ron DeSantis declared a state of emergency. This initiative provides evacuees with a safe and affordable place to stay as they ride out the storm. For more information see https://www.rosenhotels.com/rosen-hotels-resorts-reduces-pricing-ahead-of-helene/
    • Visit website for CareerSource openings: careersourceflorida.com
    • Comcast has opened more than 52,000 public Xfinity WiFi hotspots in Florida. The free and public hotspots are open for all, including non-Xfinity customers. For more information click here.
    • Walmart is working with state partners to provide needed supplies after the storm has passed.
    • Publix has provided 10 pallets of water for shelters in Leon County.
    • CVS Health is working with state partners to prepare pop-up pharmacies in impacted areas.
    • UBER is providing Floridians free rides up to $35 each way to and from a state-approved shelter in counties under a state of emergency for Hurricane Helene. To get a ride users should use promo code HELENERELIEF.
    • The Florida Department of State, Division of Elections, has contacted the United States Postal Service (USPS) about election information and vote-by-mail ballots. The Division of Elections recommended that Supervisors of Elections t contact their local district USPS to discuss a mitigation plan for ballot mailing, delivery, and return.
    • The Florida Department of Agriculture and Consumer Services (FDACS) worked with Florida’s ports and fuel industry partners to ensure adequate fuel supplies are available, and with Florida’s agricultural partners so producers have adequate resources.
    • The Florida Forest Service staged equipment, like high-water vehicles.
    • The Commissioner of Agriculture, Wilton Simpson, has approved an Emergency Order temporarily suspending the intrastate movement requirements for animal transportation. In addition, the following states have waived their interstate import requirements for Florida pets, horses, and livestock leaving the state: Alabama, Georgia (does not include livestock), Mississippi, North Carolina, and South Carolina.
    • The Department of Revenue (FDOR) has issued Emergency Order 24-001: Taxing Authority Millage and Budget Hearings to assist local taxing authorities with altering their plans for annual budget hearings because of Helene. Department of Revenue bulletin PTO 20-07 provides further instructions for local taxing authorities during declared emergencies.
    • The Florida Fish and Wildlife Conservation Commission (FWC) has high-water vehicles staged to deploy.
    • 72 FWC officers and staff are ready to deploy with specialized equipment, such as:
      • 6 Airboats
      • 8 Shallow draft boats
      • ATVs/Side-by-sides
      • 71 high-water capable four-wheel drive vehicles
      • 3 aerial surveillance drones
      • 12 high-water capable swamp buggies/Fat Truck/UTVs
      • 4 SOG support trailers
      • 4 BERG self-sustainment container units
      • 4 Hygiene trailers
      • 2 Mobile command units
      • 6 Generators
      • 2 Water trailers
      • 1 Fuel trailer
    • The Florida Department of Corrections (FDC) has evacuated 22 satellite facilities and two major facilities and relocated 4,630 inmates into hardened housing units. Inmate visitation has been suspended statewide until Monday, September 30.  The FDC will be posting updates publicly and in real-time at FDC.myflorida.com/weather-updates
    • The Florida Department of Juvenile Justice (DJJ) have finalized storm preparations to ensure the safety and security of staff and youth in our care. This includes fueling all vehicles, moving vehicles in low-lying and flood-prone areas to higher ground, testing and ensuring adequate fuel supplies for generators in the event of loss of power, and ensuring food, medicine, and emergency supplies are stocked and ready.

    For previous updates see below:
    9/24/2024
    9/25/2024

    Follow FDEM on X, Instagram, and Facebook for updates and visit FloridaDisaster.org/Updates for information relating to Hurricane Helene.

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    MIL OSI USA News –

  • MIL-OSI Security: Seven Charged After Federal Investigation Disrupts Massive Counterfeit Pill Manufacturing Operation

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

    Synthetic opioid pills trafficked from Connecticut throughout U.S. through dark web

    Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration for New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that a federal grand jury in Bridgeport has returned an indictment charging the following seven individuals with offenses related to the large-scale manufacture and trafficking of counterfeit pills containing synthetic opioids and other substances:

    KELLDON HINTON, 45, of New Haven
    HESHIMA HARRIS, 53 of New Haven
    EMANUEL PAYTON, 33, of New Haven
    MARVIN OGMAN, 47, of West Haven
    SHAWN STEPHENS, 34, of West Haven
    ARNALDO ECHEVARRIA, 42, of Waterbury
    CHERYLE TYSON, 64, of West Haven

    As alleged in court documents and statements made in court, this matter stems from an investigation led by the DEA New Haven’s Tactical Diversion Squad and the U.S. Postal Inspection Service targeting the manufacture and distribution of counterfeit oxycodone, Xanax, and Adderall tablets containing methamphetamine, protonitazene, dimethylpentylone, xylazine, and other substances.  Protonitazene is a Schedule I synthetic opioid that is three times more potent than fentanyl.  In June 2023, law enforcement received information that Kelldon Hinton was using a pill press to manufacture large quantities of counterfeit pills containing controlled substances.  Through the use of physical and electronic surveillance, the seizure and searches of parcels sent through the U.S. Mail and commercial delivery services, undercover purchases of counterfeit pills, trash pulls, and other investigative methods, investigators determined that Hinton, with the assistance of his co-conspirators, was purchasing protonitazene, dimethypentalone, xylazine, other substances, and pill press parts from China and elsewhere, using tableting machines (“pill presses”) to manufacture counterfeit pills in a garage he rented in East Haven, marketing and selling the pills on the dark web, and mailing pills to customers around the U.S.  In text messages, Hinton referred to the rented garage as his “lab.”  Between February 2023 and February 2024, Hinton shipped more than 1,300 packages through the U.S. Mail.  Hinton also distributed the counterfeit pills to associates in Connecticut, who sold them to their own customers.

    On September 5, 2024, Hinton, Harris, Payton, Stephens, and Echevarria were arrested on federal criminal complaints.  On that date, investigators conducted court-authorized searches of several locations, including the garage located on Tyler Street Extension in East Haven, which yielded several hundred thousand pills, two large pill presses, and pill manufacturing equipment.  One of the pill presses seized was capable of producing 100,000 pills per hour.

    It is further alleged that, as the investigation continued, Ogman communicated with Tyson and shared with her news reports of the search and court information of the arrests.  He also continued to distribute pills produced by Hinton, and law enforcement is currently investigating a drug overdose death that occurred recently in Connecticut.  Pills recovered from the scene appear to match those produced by the Hinton organization, and a preliminary search of the victim’s cellphone text messages revealed that Ogman supplied pills to the victim.

    The indictment added Ogman and Tyson as defendants, and was returned on September 18.  Ogman and Tyson were arrested on September 19.

    The indictment charges each of the seven defendants with conspiracy to manufacture, distribute and to possess with intent to distribute methamphetamine and protonitazene.  On this charge, based on the quantities of controlled substances attributed to each defendant, Hinton faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and the other six defendants each face a maximum term of imprisonment of 20 years.  The indictment also charges Hinton with one count of possession with intent to distribute 500 grams or more of methamphetamine and a quantity of protonitazene, which carries a mandatory minimum term of imprisonment of 10 years and maximum term of imprisonment of life, and Echevarria with one count of possession with intent to distribute protonitazene, which carries a maximum term of imprisonment of 20 years.

    Hinton, Payton, and Ogman are currently detained, and Harris, Stephens, Echevarria, and Tyson are released pending trial.

    “This multifaceted investigation is a testament to great law enforcement work by agencies here in Connecticut and across the country,” said U.S. Attorney Vanessa Roberts Avery.  “I commend the DEA New Haven, members of its Tactical Diversion Squad, and the U.S. Postal Inspection Service, for leading this effort.  “This investigation reveals the constant challenges that we in law enforcement face in battling the proliferation of synthetic opioids in America.  In recent years, the Justice Department and our law enforcement partners have focused on disrupting the global supply chain of fentanyl, other synthetic drugs, precursor chemicals, and pill manufacturing equipment, from China and Mexico to the United States.  These enhanced efforts are clearly represented by this investigation and these charges.  But, clearly, our work is not yet done.  We know that prosecution alone is not enough to combat the deadly scourge caused in our communities by fentanyl, other synthetic drugs, and counterfeit pills.  We all need to keep working together, through criminal investigations and prosecutions, treatment programs, and public awareness campaigns, such as the school presentations undertaken by my office, to educate and warn children and adults about the dangers and harm that even one counterfeit pill can cause.”

    “This country is in the midst of a catastrophic overdose epidemic where the threat from synthetic opioids and methamphetamine disguised in fake prescription medication remains high,” said Acting Special Agent in Charge Stephen Belleau, Drug Enforcement Administration, New England Field Division.  “This case showcases one of the largest seizures of fake pills the DEA has ever seen in New England.  Those responsible for distributing lethal drugs to the citizens of Connecticut need to be held accountable for their actions.  DEA will aggressively pursue Drug Trafficking Organizations and individuals who distribute this poison in order to profit and destroy people’s lives. This investigation demonstrates the strength and continued commitment of our local, state and federal law enforcement partners.”

    “These enforcement actions, which included the arrests of seven individuals and the execution of search warrants at six locations, resulted in the disruption of a significant trans-national operation and the dismantling of one of the largest illicit manufacturing sites ever located in Connecticut,” said Ketty Larco-Ward, Inspector in Charge of the Boston Division for the Postal Inspection Service. “This investigation highlights the effectiveness of the collaborative efforts among the involved agencies but also the real danger posed by individuals who engage in these crimes.  The Postal Inspection Service is proud to stand with our partners in identifying, disrupting, and dismantling these drug tracking organizations which endanger our communities.”

    U.S. Attorney Avery stressed that an indictment is not evidence of guilt.  Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

    This investigation is being conducted by the DEA New Haven’s Tactical Diversion Squad and the U.S. Postal Inspection Service, with the assistance of the DEA Chicago Cyber Task Force, Homeland Security Investigations (HSI), U.S. Customs and Border Protection, the Federal Bureau of Investigation, the U.S. Marshals Service, and the East Haven Police Department.  The DEA Tactical Diversion Squad is composed of personnel from the DEA, the Connecticut State Police, and the West Haven, Hamden, Manchester, Bristol, Fairfield, and Seymour Police Departments.

    The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Konstantin Lantsman.

    More information on the Justice Department’s efforts to disrupt to global supply chain of fentanyl and other synthetic drugs is available here.

    In March 2024, the U.S. Attorney’s Office and the DEA’s New England Field Division released a public service announcement warning of the danger of fentanyl and the proliferation of counterfeit prescription pills.  Click here for more information.

    To learn more about the U.S. Attorney’s Office’s fentanyl awareness and drug prevention program for students, click here.

    MIL Security OSI –

  • MIL-OSI Security: Quincy, Illinois, Man Sentenced to 25 Years for Distributing Methamphetamine

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

    SPRINGFIELD, Ill. – A Quincy, Illinois, man, Glenn Wooden, 39, was sentenced on September 19, 2024, to 300 months in prison for distributing methamphetamine.

    Wooden was indicted in February 2019 and convicted after a jury trial in February 2024. He has remained in custody since his arrest. At the sentencing hearing in front of U.S. District Judge Colleen R. Lawless, Wooden was held accountable for over 2,000 grams of actual methamphetamine. He has multiple prior convictions for drug distribution and other convictions for aggravated battery and unlawful use of a weapon. He was considered a career offender under the United States Sentencing Commission Sentencing Guidelines.

    The statutory penalties for distributing methamphetamine are up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.

    “Drug dealers and the violence associated with their trade impacts not just vulnerable addicts in our communities but also others not directly involved,” said Assistant U.S. Attorney Matthew Z. Weir. “Our office will continue to hold accountable those who would prey on our communities. My thanks to the West Central Illinois Task Force, Illinois State Police, Quincy Police Department and the other agencies for their work on this case.”

    This case was investigated by the West Central Illinois Task Force; Illinois State Police; Quincy Police Department; Adams County Sheriff’s Office; Drug Enforcement Administration; and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Weir and Sarah Seberger represented the government in the prosecution.

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

    MIL Security OSI –