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Category: Intelligence

  • MIL-OSI Europe: Thousands to take part in European youth event

    Source: European Union 2

    On 13 and 14 June in Strasbourg, around 8,500 16 to 30-year-olds from all over the world will take part in a series of activities centred on the future of Europe.

    EYE2025 (European Youth Event) will be opened by Parliament Vice-president Sabine Verheyen (EPP, DE) on Friday 13 June at 10:00 in the EYE village. Vice-president Nicolae Ştefănuță (Greens/EFA, RO) will take part in a session dedicated to the next long-term budget, on Saturday at 15:00. The closing session, with Vice-president Pina Picierno (S&D, IT), will take place on Saturday at 16:45.

    Over the two days, there will be panel discussions with MEPs and other EU decision-makers, as well as with experts, activists and content creators. Debates between MEPs and the young participants will cover climate justice, skills for the future, the EU’s next long-term budget, and freedom of speech and media, among many other topics.

    Commissioner for Intergenerational Fairness, Youth, Culture and Sport Glenn Micallef will lead a Youth Policy Dialogue on Friday at 11:00, and take part in a panel discussion on young people’s mental health that afternoon. Executive Vice-President of the Commission, Henna Virkkunen will join in a conversation on how technology can strengthen democracy, on Friday at 15:00.

    Other guest speakers are democracy activist Daria Navalnya, the Kayapo Amazonian tribal leader Chief Tau Metuktire and the Mayor of Strasbourg Jeanne Barseghian.

    The programme also includes workshops on a wide range of issues that concern young people, from disinformation to housing and migration. Quizzes, tours, artistic performances, storytelling workshops and concerts are other options among more than 450 activities organised for the sixth edition of EYE.

    All sessions in the hemicycle will be streamed live on the EYE2025 Facebook page and via Parliament’s Multimedia Centre. More details about the schedule, speakers and activities are available on the European Youth Event website.

    Press briefing

    On Friday 13 June at 16:30, there will be a press briefing with Vice-president Verheyen on media freedom in the EU, in the Daphne Caruana Galizia press conference room. You can follow it live here.

    MIL OSI Europe News –

  • MIL-OSI Security: Poplar woman sentenced to prison for making false statements

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

    GREAT FALLS – A Poplar woman who provided false statements to federal law enforcement was sentenced today to 9 months in prison to be followed by 2 years of supervised release, U.S. Attorney Kurt Alme said.

    Annie Lee Kirn, 27, pleaded guilty in January 2025 to one count of making a false statement.

    Chief U.S. District Judge Brian M. Morris presided.

    The government alleged in court documents that on the evening of November 21, 2023, Kirn returned with her elderly friend to his residence on the Fort Peck Indian Reservation. Shortly thereafter, two men broke into the home. Armed with an assault rifle, the men assaulted the homeowner and another man and demanded money and access to a wall safe.

    During an interview with federal law enforcement officers, Kirn said she saw the would-be robbers outside before the robbery and one of them kept trying to grab her, she then saw the gun and freaked out. She also told law enforcement the armed man told her to run, that she ran, and then he fired three or four times.

    Law enforcement recovered and reviewed surveillance video from the home that showed a car with five people following Kirn’s truck into the yard. Two men, one of whom was armed with a rifle, approached the house while Kirn was getting out of the truck. After the homeowner went into the house, Kirn returned to the yard and visited with the two men. During that time, they discussed her relationship with the homeowner, Kirn offered to share a joint with the man armed with the rifle, they whispered about cash, and talked about the location of a safe. At one point, Kirn asked about the rifle, the armed man handed it to her, and she held it at the ready position before handing it back to the man. While they were outside, the man fired seven rounds from the rifle, primarily into the air.

    In an interview in September 2024, law enforcement followed up with Kirn about the night of the robbery. When asked directly if she ever handled the firearm, Kirn said “hell no.” When asked if she had any conversations with the robbers, she said, “No…I didn’t talk with them at all.”

    Assistant U.S. Attorney Kalah Paisley prosecuted the case. The investigation was conducted by the FBI, ATF, and Fort Peck Tribes Department of Law and Justice.

    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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

    XXX

    MIL Security OSI –

  • MIL-OSI Europe: Press release – EYE2025 (European Youth Event): thousands to celebrate the power of democracy

    Source: European Parliament 3

    On 13 and 14 June in Strasbourg, around 8,500 16 to 30-year-olds from all over the world will take part in a series of activities centred on the future of Europe.

    EYE2025 (European Youth Event) will be opened by Parliament Vice-president Sabine Verheyen (EPP, DE) on Friday 13 June at 10:00 in the EYE village. Vice-president Nicolae Ştefănuță (Greens/EFA, RO) will take part in a session dedicated to the next long-term budget, on Saturday at 15:00. The closing session, with Vice-president Pina Picierno (S&D, IT), will take place on Saturday at 16:45.

    Over the two days, there will be panel discussions with MEPs and other EU decision-makers, as well as with experts, activists and content creators. Debates between MEPs and the young participants will cover climate justice, skills for the future, the EU’s next long-term budget, and freedom of speech and media, among many other topics.

    Commissioner for Intergenerational Fairness, Youth, Culture and Sport Glenn Micallef will lead a Youth Policy Dialogue on Friday at 11:00, and take part in a panel discussion on young people’s mental health that afternoon. Executive Vice-President of the Commission, Henna Virkkunen will join in a conversation on how technology can strengthen democracy, on Friday at 15:00.

    Other guest speakers are democracy activist Daria Navalnya, the Kayapo Amazonian tribal leader Chief Tau Metuktire and the Mayor of Strasbourg Jeanne Barseghian.

    The programme also includes workshops on a wide range of issues that concern young people, from disinformation to housing and migration. Quizzes, tours, artistic performances, storytelling workshops and concerts are other options among more than 450 activities organised for the sixth edition of EYE.

    All sessions in the hemicycle will be streamed live on the EYE2025 Facebook page and via Parliament’s Multimedia Centre. More details about the schedule, speakers and activities are available on the European Youth Event website.

    Press briefing

    On Friday 13 June at 16:30, there will be a press briefing with Vice-president Verheyen on media freedom in the EU, in the Daphne Caruana Galizia press conference room. You can follow it live here.

    MIL OSI Europe News –

  • MIL-OSI Global: ‘Godfather of AI’ now fears it’s unsafe. He has a plan to rein it in

    Source: The Conversation – Global Perspectives – By Armin Chitizadeh, Lecturer, School of Computer Science, University of Sydney

    fran_kie/Shutterstock

    This week the US Federal Bureau of Investigation revealed two men suspected of bombing a fertility clinic in California last month allegedly used artificial intelligence (AI) to obtain bomb-making instructions. The FBI did not disclose the name of the AI program in question.

    This brings into sharp focus the urgent need to make AI safer. Currently we are living in the “wild west” era of AI, where companies are fiercely competing to develop the fastest and most entertaining AI systems. Each company wants to outdo competitors and claim the top spot. This intense competition often leads to intentional or unintentional shortcuts – especially when it comes to safety.

    Coincidentally, at around the same time of the FBI’s revelation, one of the godfathers of modern AI, Canadian computer science professor Yoshua Bengio, launched a new nonprofit organisation dedicated to developing a new AI model specifically designed to be safer than other AI models – and target those that cause social harm.

    So what is Bengio’s new AI model? And will it actually protect the world from AI-faciliated harm?

    An ‘honest’ AI

    In 2018, Bengio, alongside his colleagues Yann LeCun and Geoffrey Hinton, won the Turing Award for groundbreaking research they had published three years earlier on deep learning. A branch of machine learning, deep learning attempts to mimic the processes of the human brain by using artificial neural networks to learn from computational data and make predictions.

    Bengio’s new nonprofit organisation, LawZero, is developing “Scientist AI”. Bengio has said this model will be “honest and not deceptive”, and incorporate safety-by-design principles.

    According to a preprint paper released online earlier this year, Scientist AI will differ from current AI systems in two key ways.

    First, it can assess and communicate its confidence level in its answers, helping to reduce the problem of AI giving overly confident and incorrect responses.

    Second, it can explain its reasoning to humans, allowing its conclusions to be evaluated and tested for accuracy.

    Interestingly, older AI systems had this feature. But in the rush for speed and new approaches, many modern AI models can’t explain their decisions. Their developers have sacrificed explainability for speed.

    Bengio also intends “Scientist AI” to act as a guardrail against unsafe AI. It could monitor other, less reliable and harmful AI systems — essentially fighting fire with fire.

    This may be the only viable solution to improve AI safety. Humans cannot properly monitor systems such as ChatGPT, which handle over a billion queries daily. Only another AI can manage this scale.

    Using an AI system against other AI systems is not just a sci-fi concept – it’s a common practice in research to compare and test different level of intelligence in AI systems.

    Adding a ‘world model’

    Large language models and machine learning are just small parts of today’s AI landscape.

    Another key addition Bengio’s team are adding to Scientist AI is the “world model” which brings certainty and explainability. Just as humans make decisions based on their understanding of the world, AI needs a similar model to function effectively.

    The absence of a world model in current AI models is clear.

    One well-known example is the “hand problem”: most of today’s AI models can imitate the appearance of hands but cannot replicate natural hand movements, because they lack an understanding of the physics — a world model — behind them.

    Another example is how models such as ChatGPT struggle with chess, failing to win and even making illegal moves.

    This is despite simpler AI systems, which do contain a model of the “world” of chess, beating even the best human players.

    These issues stem from the lack of a foundational world model in these systems, which are not inherently designed to model the dynamics of the real world.

    Yoshua Bengio is recognised as one of the godfathers of AI.
    Alex Wong/Getty Images

    On the right track – but it will be bumpy

    Bengio is on the right track, aiming to build safer, more trustworthy AI by combining large language models with other AI technologies.

    However, his journey isn’t going to be easy. LawZero’s US$30 million in funding is small compared to efforts such as the US$500 billion project announced by US President Donald Trump earlier this year to accelerate the development of AI.

    Making LawZero’s task harder is the fact that Scientist AI – like any other AI project – needs huge amounts of data to be powerful, and most data are controlled by major tech companies.

    There’s also an outstanding question. Even if Bengio can build an AI system that does everything he says it can, how is it going to be able to control other systems that might be causing harm?

    Still, this project, with talented researchers behind it, could spark a movement toward a future where AI truly helps humans thrive. If successful, it could set new expectations for safe AI, motivating researchers, developers, and policymakers to prioritise safety.

    Perhaps if we had taken similar action when social media first emerged, we would have a safer online environment for young people’s mental health. And maybe, if Scientist AI had already been in place, it could have prevented people with harmful intentions from accessing dangerous information with the help of AI systems.

    Armin Chitizadeh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. ‘Godfather of AI’ now fears it’s unsafe. He has a plan to rein it in – https://theconversation.com/godfather-of-ai-now-fears-its-unsafe-he-has-a-plan-to-rein-it-in-258288

    MIL OSI – Global Reports –

  • MIL-OSI China: Regular Press Conference of the Ministry of National Defense on May 29, 2025 2025-06-06 Senior Colonel Zhang Xiaogang, spokesperson for the Ministry of National Defense (MND) of the People’s Republic of China (PRC), answers questions at a regular press conference on the afternoon of May 29, 2025.

    Source: People’s Republic of China – Ministry of National Defense

    By Senior Colonel Zhang Xiaogang, Spokesperson for the Ministry of National Defense (MND)

    Senior Colonel Zhang Xiaogang, spokesperson for the Ministry of National Defense (MND) of the People’s Republic of China (PRC), answers questions at a regular press conference on the afternoon of May 29, 2025. (mod.gov.cn)

    (The following English text is for reference. In case of any divergence of interpretation, the Chinese text shall prevail.)

    Zhang Xiaogang: Friends from the media, good afternoon, welcome to this month’s regular press conference of the Ministry of National Defense of the People’s Republic of China

    I have a piece of news to release at the top.

    The PLA National Defense University (NDU) sent a delegation to attend the 22nd Shangri-La Dialogue (SLD) upon invitation on May 29. The visit is scheduled till June 2, during which the delegation will also have exchanges with military and civilian units in Singapore.

    Journalist: Not long ago, the 4th Ministerial Meeting of the China-CELAC Forum was held in Beijing. President Xi Jinping attended the opening ceremony and delivered an important speech. Could you please provide more details about military cooperation between China and Latin American and Caribbean (LAC) countries?

    Zhang Xiaogang: Recently, President Xi Jinping attended the 4th Ministerial Meeting of the China-CELAC Forum and delivered a keynote address. He summarized the best practices for developing China-LAC relations, and announced the launch of five programs of Solidarity, Development, Civilization, Peace and People-to-People Connectivity. In the speech, President Xi has charted the course for building a China-LAC Community with a Shared Future.

    China-LAC cooperation has withstood winds and rains, and transcended mountains and oceans across half a globe. The cooperation has bolstered economic growth and improved the livelihoods of the LAC region, bringing tangible benefits to the local people. In recent years, the Chinese and LAC militaries have had frequent high-level exchange, and conducted numerous working level meetings. Events such as the China-LAC States Defense Forum, China-LAC Military Medicine Forum and Seminar for Senior Military Officers from LAC Countries have been held multiple times. China-LAC defense cooperation has been productive, deepening our friendship and mutual trust. The Chinese side stands ready to work with the defense establishments and militaries of LAC countries to act on the Global Security Initiative, and deepen substantive cooperation in such areas as mutual visits, professional exchanges and personnel training. Together, we will promote sustained and solid progress in building a China-LAC Community with a Shared Future.

    Journalist: In his recent speech, Lai Ching-te said that Taiwan would continue to strengthen its defenses and avoid war by preparing for it. Will the PLA conduct military exercises as countermeasures as before?

    Zhang Xiaogang: As long as Lai Ching-te continues his provocations for “Taiwan independence”, there will be no tranquility in the Taiwan Strait and no stability for our Taiwan compatriots. We warn the DPP authorities that “Taiwan independence” separatists will come to no good end. The PLA will remain combat-ready at all times, enhance combat readiness, and safeguard our national sovereignty and territorial integrity.

    Journalist: The US recently unveiled plans for the Golden Dome missile defense system, and announced that it would be completed in 3 years. May I have your comments on this?

    Zhang Xiaogang: The US presses ahead with the Golden Dome system and deploys space-based weapons, continuously expands its military build-up and stokes an arms race in outer space. Such acts violate relevant principles of the Outer Space Treaty, heighten the risk of turning the space into a war zone and triggering a space arms race, and shake the international security and arms control regime. Its actions will once again open the Pandora’s box. This proves again that no country has done more than the US in militarizing the space and making it a battlefield. We urge the US side to stop expanding military build-up in space, and take concrete actions to uphold global strategic stability.

    Journalist: I have two questions. The first one is that Japan’s Defense Ministry recently announced that Chinese aircraft carrier PLANS Liaoning conducted take-off and landing operations of ship-borne aircraft in the East China Sea. Officials of the Japan Self-Defense Forces said that similar activities were conducted by Chinese aircraft carriers before, but this training occurred in waters closer to Japan. The Japanese Defense Ministry therefore decided to make it public and this is the first time for the Ministry to release such information. What’s your comment on this?

    The second question is that the US President Donald Trump recently said that the US was mass-producing hypersonic missiles. As one of the major countries that develop hypersonic technologies, how does the Chinese side view the impact on the global arms control regime caused by the US accelerating its deployment of such strategic weapons?

    Zhang Xiaogang: On the first question, the task fleet led by PLANS Liaoning conducted training in relevant waters, which does not target any specific country or entity and is in line with international law and practice. I think the Japanese side overreacted.

    On your second question, We pursue a national defense policy that is defensive in nature, never engage in arms race with any other country, and are committed to global strategic stability.

    Journalist: I have two questions. The first one is that the US Carrier Strike Group led by USS Nimitz re-entered the South China Sea through the Singapore Strait on May 26 after its visit to Malaysia. What’s your comment on this?

    The second question is that reports suggest that the Indian side recovered an undetonated PL-15E air-air missile during the India-Pakistan conflict. Can you confirm this? Will this give the Indian side assess to relevant military technology?

    Zhang Xiaogang: On your first question, activities to flex its muscle and stir up troubles in the South China Sea will find no support. The Chinese side will firmly safeguard our territorial sovereignty and maritime rights and interests, and maintain peace and stability in the South China Sea.

    On your second question, the type of missile you mentioned is for export and has also been exhibited in international and domestic defense expos multiple times.

    Journalist: I have two questions. The first is the Commander of the US Army Pacific recently claimed that China’s increasingly aggressive behavior in the Indo-Pacific had made the situation more dangerous. He said that no one would have imagined that Beijing would conduct drills simulating a blockade of Taiwan five years ago, but now such moves were commonplace. In addition, head of the US Indo-Pacific Command said that the Chinese side was conducting comprehensive exercises in preparation for recovering Taiwan and was increasingly active in other regions of the Pacific. May I have your comments on this?

    The second question is that according to Taiwan media reports, the DPP authorities have stepped up its procurement of the Patriot missiles, drawn personnel from its Marine Corps to form combat units for the “Greater Taipei Area”, and launched several drills on responses to the so-called “PLA attacks on Taiwan”. Public opinion in Taiwan believes that these actions are preparing for Lai Ching-te’s desertion in the face of war. Do you have any comment?

    Zhang Xiaogang: For your first question, Taiwan is part of China. Resolving the Taiwan question is a matter for the Chinese, which brooks no external interference. For the cross-Strait situation, there is no factor more destabilizing than the provocations made by the “Taiwan independence” separatists and the disruptions by foreign forces. It’s legitimate, necessary, lawful and justified for the Chinese side to take actions to safeguard national sovereignty and territorial integrity. We urge the US side to stop fanning the flames on the Taiwan question. Such behaviors would only backfire.

    For your second question. Don’t be fooled by Lai Ching-te’s reckless provocations now. When the day comes, people like him will be the first to run away. For the PLA, defeating military elements of the “Taiwan independence” separatist forces is like shooting fish in a barrel. Those notorious separatists have no chance to escape.

    Senior Colonel Zhang Xiaogang, spokesperson for the Ministry of National Defense (MND) of the People’s Republic of China (PRC), answers questions at a regular press conference on the afternoon of May 29, 2025. (mod.gov.cn)

    Journalist: I have two questions. Firstly, you just announced that the PLA NDU sent a delegation to attend this year’s SLD. Why didn’t the Chinese side send higher level military officials to attend the dialogue? The US Department of Defense has already announced its attendance at the dialogue, and said that the US was a more credible regional partner than China. What’s your comment on that? My second question is that this year marks the 80th year of the World Anti-Fascist War. Many European countries have held celebrations commemorating this victory. September 3rd marks the 80th anniversary of the victory of the Chinese People’s War of Resistance against Japanese Aggression. Many people are expecting the Chinese side to hold a military parade to commemorate this anniversary. What’s your comment on that?

    Zhang Xiaogang: On your first question, China consistently engages in constructive dialogues to articulate our vision and initiatives. We are committed to enhancing mutual trust and deepening cooperation through these exchanges, contributing Chinese wisdom to the building of a community with a shared future for mankind. The PLA NDU delegation attending this year’s SLD will have in-depth exchanges with participating parties to build more consensus.

    As for the second question, I have no information to release here.

    Journalist: What is the Chinese Ministry of National Defense’s assessment on the equipment supplied by the Chinese military to Pakistan in the recent conflict between India and Pakistan? An Indian official said that China provided satellite and air defense systems for Pakistan, but these systems performed below average. What’s your comment on that?

    Zhang Xiaogang: Pakistan and India are neighbors who cannot move away from each other. We call on the both sides to keep calm, exercise restraint and avoid complicating the situation. China will continue to play a constructive role in maintaining regional peace and stability.

    Journalist: It’s reported that US Defense Secretary recently said that the US side would build up its military to meet China’s “threat” at every turn, and counter China in the Indo-Pacific. In addition, Commander of the US Army Pacific said that the US army was building agile new units in response to potential conflicts with China. What’s your comment on

    Zhang Xiaogang: Conflict and confrontation should not be the choice of either side. Mutual respect, peaceful coexistence and win-win cooperation is the right way for China and the US to deal with each other. The US side should stop conjuring up a powerful enemy for itself whether intentionally or unintentionally. Such imagination is not rational and extremely dangerous. The Chinese military will make all-out efforts to enhance our combat readiness, and firmly safeguard national sovereignty, security and development interests.

    Journalist: Some US and Israeli media outlets call on the US to stop its military assistance to Egypt, because of Egypt’s close cooperation with China. What’s your comment on this?

    Zhang Xiaogang: China-Egypt cooperation is not aimed at any third party, nor will it be interfered by any third party. The Chinese and Egyptian militaries will continue to deepen friendship, mutual trust and practical cooperation.

    Journalist: As China’s first aircraft carrier with catapult system, PLANS Fujian is undergoing a series of intensive sea trials. What kind of signal does that send out?

    Senior Colonel Zhang Xiaogang, spokesperson for the Ministry of National Defense (MND) of the People’s Republic of China (PRC), answers questions at a regular press conference on the afternoon of May 29, 2025. (mod.gov.cn)

    Zhang Xiaogang: The sea trial is a necessary part for the construction of aircraft carriers. PLANS Fujian will conduct relevant tests as planned.

    Journalist: According to a satellite image revealed last week, H-6 bombers and a KJ-500 airborne early warning aircraft were seen on Yongxing Dao of Xisha Qundao. What is the purpose of this deployment? Some experts suggest that it is to send signals to the Philippines and Vietnam. What’s your comment on that?

    Zhang Xiaogang: I am not aware of the information you mentioned. I want to emphasize that the Xisha Qundao is an inherent part of the Chinese territory. We oppose the hype about relevant military activities.

    Journalist: An African Young Officers Delegation visited China recently. Some commentary regarded the trip as one that combines culture, technology and friendship. Could you please provide more details on this?

    Zhang Xiaogang: The African Young Officers Delegation concluded its 10-day visit to China on May 15. During the visit, nearly a hundred military officers from over 40 African countries, including Egypt, Mozambique, Tanzania and Kenya, came to cities such as Beijing, Changsha and Shaoshan. They visited military units, academies and high-tech enterprises, attended themed lectures and seminars, toured the Museum of the Communist Party of China and the former residence of Comrade Mao Zedong, and had in-depth exchanges with their Chinese counterparts. Members of the delegation expressed how impressive and inspiring this visit was. This is the 4th African Young Officers Delegation invited to China by the Chinese Ministry of National Defense. This visit deepened the traditional friendship between the Chinese and African militaries, and advanced the building of an All-weather China-Africa Community with a Shared Future for the New Era.

    Journalist: I have two questions. The first one is that the US Indo-Pacific Commander reportedly said that China was outpacing the US in the production of warships and other equipment. He said that the rates of changes on the depth and breadth of PLA’s exercises was what kept him up at night. May I have your comments on this?

    The second question is that it’s reported that China’s third large hospital ship PLANS Ark Auspicious has been commissioned, marking the deployment of large ocean-going hospital ship to the Eastern Theater Command, South Theater Command and North Theater Command respectively. What’s your comment on this?

    Zhang Xiaogang: On your first question, China does not engage in arms race with any other country. We develop our military to defend China’s national sovereignty, security and development interests and to bring stability and positive energy to global peace and security.

    On your second question, PLANS Ark Auspicious is the third 10,000-ton-class ocean-going hospital ship domestically designed and built by China. It features a combat-oriented layout and is equipped with advanced medical equipment. PLANS Ark Auspicious, together with Ark Peace and Ark Silk Road, not only forms the backbone of medical support on the sea, but also executes tasks of international humanitarian medical services, emergency medical rescue in major disasters, and foreign exchanges and cooperation on military medicine. PLAN hospital ships will help the Chinese military materialize the vision of building a maritime community with a shared future and offer the world more public security goods of higher quality.

    Journalist: Does the Chinese delegation plan to meet with any other delegations on the sidelines of the Shangri-La Dialogue? Is there any planned meeting with the US delegation?

    Zhang Xiaogang: Regarding this, we will release information in due course. The Chinese side values our defense relations with the US military and is open to communications at different levels. We hope the US side will earnestly respect China’s core interests and major concerns, work with us in the same direction, and promote the steady and sound development of military-to-military relations.

    Journalist: Minister of National Defense Admiral Dong Jun recently visited France and Germany, and attended the 6th UN Peacekeeping Ministerial. Please provide further details about this.

    Zhang Xiaogang:Minister of National Defense Admiral Dong Jun led a delegation to visit France and Germany and attend the 6th UN Peacekeeping Ministerial in Berlin from May 11 to 17. Minister Dong held talks with French Minister of the Armed Forces Sébastien Lecornu and German Federal Minister of Defence Boris Pistorius respectively. The leaders had an in-depth exchange of view on international and regional issues of mutual interests, and reached consensus on strengthening substantive engagements and cooperation between the Chinese and French and the Chinese and German militaries. Minister Dong also met with UN Secretary-General António Guterres and Under Secretary-General Jean-Pierre Lacroix on the sidelines of the 6th UN Peacekeeping Ministerial. In his speech delivered at the conference, Minister Dong emphasized that the Chinese side will work with different parties to act on the Global Security Initiative, uphold the core position of the UN, redouble efforts on the United Nations Peacekeeping Operations (UNPKOs), support the training of professional peacekeepers, optimize the composition and capabilities of Chinese Peacekeeping Standby Force, advance continuous innovation of UNPKOs, and contribute more to UNPKOs.

    Journalist: Lately, official new media accounts of PLA theater commands and services and arms have been opened on the ‘China Bugle” app. What’s your comment on that?

    Zhang Xiaogang: China Bugle is the mobile flagship platform of information release launched by the PLA News Media Center. As of now, the PLA Army, Navy, Air Force, Rocket Force, and the PAP, as well as the PLA Eastern, Southern, Western, Northern and Central Theater Commands have opened their official new media accounts on this app. This demonstrates the deep integration of different forms of military media, and provides an important channel for the public to learn about defense and military development in an all-round manner. Going forward, more military units and media outlets will join the “China Bugle” app to form an integrated new media platform for military news.

    Journalist: The draft of the Japanese defense ministry’s Defense White Paper 2025 was revealed. The draft claims that China is ramping up its nuclear, missile, maritime and aviation capabilities; that PLA’s activities near Taiwan demonstrate that Beijing is trying to improve its combat capabilities; and strengthened China-Russia military cooperation is a concern for Japan. What’s your comment on this?

    Zhang Xiaogang: In the draft of its Defense White Paper, the Japanese side repeats its irresponsible comments about China’s military development, and points fingers at China’s legitimate military activities and external military cooperation. We are strongly opposed to this. This year marks the 80th year of the victory of the Chinese People’s War of Resistance Against Japanese Aggression and the World Anti-Fascist War. At this special historical juncture, it’s even more important for Japan to reflect on its behaviors, instead of making unfounded smears and accusations against others. We urge the Japanese side to follow the path of peaceful development, act prudently in the domain of military and security, and earn the trust of its Asian neighbors and the rest of the international community with concrete actions.

    Journalist: Head of Taiwan’s defense authorities Koo Li-hsiung reportedly said in an interview that US forces and alliances across Asia was crucial for holding Beijing in check. He also expressed hope for the US to expedite arms sales to Taiwan to help Taiwan address military threats from China.What’s your comments on this?

    Zhang Xiaogang: The Taiwan question is purely an internal affair of China, which brooks no interference. We will strive for the prospect of peaceful reunification with utmost sincerity and greatest effort. However, should the “Taiwan independence” separatists make provocations, challenge our bottom lines, or even cross the red lines, we will have to take decisive measures. The US side supports “Taiwan independence” separatists through arms sales. Such acts are self-defeating and will push Taiwan into the abyss of war.

    Journalist: Recently, the Chinese and Cambodian militaries successfully held the Golden Dragon 2025 joint exercise. Please provide more details.

    Zhang Xiaogang: The Chinese and Cambodian armed forces conducted the Golden Dragon 2025 joint exercise in Kampong Chhnang Province and the airspace and waters off the Sihanoukville Port from May 14 to 28. As the 7th iteration of the Golden Dragon series, this year’s exercise has three highlights. First, it focused on counter-terrorism and humanitarian assistance operations, conducting drills on relevant subjects. Second, the China-Cambodia Joint Support and Training Center at Port Ream provided support for drills on the sea for the first time. Air force helicopters took part in the exercise for the first time. Land, naval, air and joint logistic support components from both sides conducted drills together. Third, the exercise consisted of two parts: naval & air operations and ground & air operations. Participating troops were organized into mixed groups to learn from each other during tactical training and comprehensive drills, which helped to enhance command coordination and emergency response capabilities of the two sides. During the joint exercise, the PLA contingent also donated school supplies and provided free medical services to the local community. China and Cambodia are iron-clad friends with rock-solid relations. The Chinese and Cambodian militaries will work in concert to act on the important consensus between leaders of the two countries, and make greater contributions to building a China-Cambodia All-weather Community with a Shared Future for the New Era, and to preserving regional security and stability.

    Journalist: The Philippine Coast Guard said that the Coast Guard and Armed Forces of the Philippines and the US Coast Guard conducted a joint patrol in waters off Palawan, which reaffirmed the Philippines’ commitment to maritime security and the “rule-based international order”. What’s your comment on this?

    Senior Colonel Zhang Xiaogang, spokesperson for the Ministry of National Defense (MND) of the People’s Republic of China (PRC), answers questions at a regular press conference on the afternoon of May 29, 2025. (mod.gov.cn)

    Zhang Xiaogang: At present, the situation in the South China Sea remains generally stable. The freedom of navigation and overflight entitled to all countries under international law has never been an issue. Some countries provoke confrontation in the name of cooperation, flex muscles under the guise of freedom, and create chaos with the pretext of order. They have become the biggest source of risks that undermines peace and stability in the South China Sea. We urge relevant countries to stop ganging up and stirring up troubles in the South China Sea, and stop harming regional peace and stability.

    Journalist: I have two questions. The first question is about the PLA aircraft carrier Liaoning and its task fleet. They are currently off the southeast coast of Taiwan. The Taiwan authority said that they have taken joint intelligence means to monitor relevant operations throughout the whole process. Some people suggest that the PLA will probably conduct military exercises before or after the Dragon Boat Festival. Can you confirm whether the PLA has relevant plans? My second question. According to media reports, the CIA is about to release its annual report, suggesting that the Chinese mainland poses the greatest threat to the world and increasing menace against Taiwan. It also said that the rapid modernization of the PLA would prevent the US from entering the Pacific. What’s your comment on this?

    Zhang Xiaogang: On your first question. Relevant military activities organized by the PLA recently are routine arrangements according to our annual training plan.

    On your second question, as we all know, China is unwavering in our commitment to peace, development and international order. The biggest threat to the current cross-Strait situation comes from separatist activities for “Taiwan independence” and support from foreign forces. If relevant countries truly care about stability in the Taiwan Strait, they should abide by the one-China principle and unequivocally oppose “Taiwan independence”.

    If there are no other questions, this concludes today’s press conference. Thank you.

    MIL OSI China News –

  • MIL-OSI Russia: Orbital operation of Tianwen-2 probe is proceeding as normal – CNSA

    Translation. Region: Russian Federal

    Source: People’s Republic of China in Russian – People’s Republic of China in Russian –

    Source: People’s Republic of China – State Council News

    BEIJING, June 6 (Xinhua) — China’s Tianwen-2 space probe has been operating in orbit for eight days without interruption as of the morning of June 6, reaching a distance of more than 3 million kilometers from Earth, the China National Space Administration (CNSA) said Friday.

    Along with this, CNSA also released photos and video footage of the probe’s round solar panels being deployed.

    Tianwen-2 is designed to carry out a mission to extract and return asteroid samples to Earth. It was launched on May 29 of this year.

    MIL OSI Russia News –

  • MIL-OSI China: CNSA: Tianwen-2 probe operating smoothly in orbit

    Source: People’s Republic of China – State Council News

    CNSA: Tianwen-2 probe operating smoothly in orbit

    Xinhua | June 6, 2025

    As of Friday morning, the Tianwen-2 probe had been operating smoothly in orbit for over eight days, reaching a distance of more than 3 million kilometers from Earth, according to the China National Space Administration (CNSA) Friday.

    The CNSA also released an image captured by the probe, showing one unfolded solar panel.

    China launched its first asteroid sample-return mission, Tianwen-2, on May 29, an endeavour to shed light on the formation and evolution of asteroids and the early solar system.

    The Tianwen-2 mission aims to achieve multiple goals over a decade-long expedition: collecting samples from the near-Earth asteroid 2016HO3 and exploring the main-belt comet 311P, which is more distant than Mars.

    To meet the power demands during the deep-space voyage, the Tianwen-2 probe is equipped with circular, flexible solar panels. 

    MIL OSI China News –

  • MIL-Evening Report: ‘Godfather of AI’ now fears it’s unsafe. He has a plan to rein it in

    Source: The Conversation (Au and NZ) – By Armin Chitizadeh, Lecturer, School of Computer Science, University of Sydney

    fran_kie/Shutterstock

    This week the US Federal Bureau of Investigation revealed two men suspected of bombing a fertility clinic in California last month allegedly used artificial intelligence (AI) to obtain bomb-making instructions. The FBI did not disclose the name of the AI program in question.

    This brings into sharp focus the urgent need to make AI safer. Currently we are living in the “wild west” era of AI, where companies are fiercely competing to develop the fastest and most entertaining AI systems. Each company wants to outdo competitors and claim the top spot. This intense competition often leads to intentional or unintentional shortcuts – especially when it comes to safety.

    Coincidentally, at around the same time of the FBI’s revelation, one of the godfathers of modern AI, Canadian computer science professor Yoshua Bengio, launched a new nonprofit organisation dedicated to developing a new AI model specifically designed to be safer than other AI models – and target those that cause social harm.

    So what is Bengio’s new AI model? And will it actually protect the world from AI-faciliated harm?

    An ‘honest’ AI

    In 2018, Bengio, alongside his colleagues Yann LeCun and Geoffrey Hinton, won the Turing Award for groundbreaking research they had published three years earlier on deep learning. A branch of machine learning, deep learning attempts to mimic the processes of the human brain by using artificial neural networks to learn from computational data and make predictions.

    Bengio’s new nonprofit organisation, LawZero, is developing “Scientist AI”. Bengio has said this model will be “honest and not deceptive”, and incorporate safety-by-design principles.

    According to a preprint paper released online earlier this year, Scientist AI will differ from current AI systems in two key ways.

    First, it can assess and communicate its confidence level in its answers, helping to reduce the problem of AI giving overly confident and incorrect responses.

    Second, it can explain its reasoning to humans, allowing its conclusions to be evaluated and tested for accuracy.

    Interestingly, older AI systems had this feature. But in the rush for speed and new approaches, many modern AI models can’t explain their decisions. Their developers have sacrificed explainability for speed.

    Bengio also intends “Scientist AI” to act as a guardrail against unsafe AI. It could monitor other, less reliable and harmful AI systems — essentially fighting fire with fire.

    This may be the only viable solution to improve AI safety. Humans cannot properly monitor systems such as ChatGPT, which handle over a billion queries daily. Only another AI can manage this scale.

    Using an AI system against other AI systems is not just a sci-fi concept – it’s a common practice in research to compare and test different level of intelligence in AI systems.

    Adding a ‘world model’

    Large language models and machine learning are just small parts of today’s AI landscape.

    Another key addition Bengio’s team are adding to Scientist AI is the “world model” which brings certainty and explainability. Just as humans make decisions based on their understanding of the world, AI needs a similar model to function effectively.

    The absence of a world model in current AI models is clear.

    One well-known example is the “hand problem”: most of today’s AI models can imitate the appearance of hands but cannot replicate natural hand movements, because they lack an understanding of the physics — a world model — behind them.

    Another example is how models such as ChatGPT struggle with chess, failing to win and even making illegal moves.

    This is despite simpler AI systems, which do contain a model of the “world” of chess, beating even the best human players.

    These issues stem from the lack of a foundational world model in these systems, which are not inherently designed to model the dynamics of the real world.

    Yoshua Bengio is recognised as one of the godfathers of AI.
    Alex Wong/Getty Images

    On the right track – but it will be bumpy

    Bengio is on the right track, aiming to build safer, more trustworthy AI by combining large language models with other AI technologies.

    However, his journey isn’t going to be easy. LawZero’s US$30 million in funding is small compared to efforts such as the US$500 billion project announced by US President Donald Trump earlier this year to accelerate the development of AI.

    Making LawZero’s task harder is the fact that Scientist AI – like any other AI project – needs huge amounts of data to be powerful, and most data are controlled by major tech companies.

    There’s also an outstanding question. Even if Bengio can build an AI system that does everything he says it can, how is it going to be able to control other systems that might be causing harm?

    Still, this project, with talented researchers behind it, could spark a movement toward a future where AI truly helps humans thrive. If successful, it could set new expectations for safe AI, motivating researchers, developers, and policymakers to prioritise safety.

    Perhaps if we had taken similar action when social media first emerged, we would have a safer online environment for young people’s mental health. And maybe, if Scientist AI had already been in place, it could have prevented people with harmful intentions from accessing dangerous information with the help of AI systems.

    Armin Chitizadeh does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. ‘Godfather of AI’ now fears it’s unsafe. He has a plan to rein it in – https://theconversation.com/godfather-of-ai-now-fears-its-unsafe-he-has-a-plan-to-rein-it-in-258288

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Security: Last of Five Defendants Sentenced in Two Separate Romanian ATM Skimming Conspiracies with Combined Losses of Over $1 Million

    Source: Office of United States Attorneys

    BINGHAMTON, NEW YORK – Ionel Tomescu Baldovin, age 28, a Romanian national, was sentenced Thursday, May 22, 2025, to 33 months in prison for his role in a bank fraud conspiracy impacting two Northern District of New York financial institutions and least five additional financial institutions across the United States. United States Attorney John A. Sarcone III 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 previously entered guilty plea, Baldovin admitted that he conspired with others to place skimming devices and cameras at ATMs at financial institutions, including two financial institutions in the Northern District of New York.  Once installed, the devices and cameras captured ATM customers’ account information and personal identification numbers (“PINs”).  Members of the conspiracy subsequently created fraudulent debit cards from the captured information, which they used to withdraw currency from customers’ accounts.  Baldovin admitted involvement in the conspiracy from October 2017 to April 2018, with losses of over $450,0000 to financial institutions, including losses of over $20,000 from a Northern District of New York financial institution.  Baldovin was the only defendant charged in this conspiracy. 

    United States District Judge Glenn T. Suddaby also ordered Baldovin to pay $454,447 in restitution, and to serve a 3-year term of supervised release following his incarceration.

    In 2019, four Romanian nationals conspired to commit a similar bank fraud skimming scheme. In that conspiracy, skimming devices were placed on ATMs at a financial institution in the Northern District of New York, and fraudulent debit cards were created from the information captured, allowing the defendants access to information from over 500 compromised accounts. 

    Each Romanian national pled guilty to one count of conspiracy to commit bank fraud and multiple counts of aggravated identity theft.  They were each sentenced as follows:

    • Laurentiu Florian Iancu was sentenced December 11, 2024, to 48 months incarceration, three (3) years’ supervised release, and an order of restitution of $169,075.
    • Florin Nicolae Mares was sentenced January 18, 2023, to 51 months incarceration, two (2) years’ supervised release, and an order of restitution of $169,075.
    • Liviu Samuel Anca was sentenced September 20, 2024, to 40 months incarceration, three (3) years’ supervised release, and an order of restitution of $169,075.
    • Teodor Claudiu Stan was sentenced December 19, 2023, to 81 months incarceration, four (4) years’ supervised release, and an order of restitution of over $675,000. During his plea, Stan admitted his involvement in the 2019 Northern District of New York conspiracy with Baldovin, as well as a broader conspiracy through 2022 where he and his co-conspirators made, modified, placed or assisted in placing skimming devices at eight (8) additional financial institutions across the United States.   

    U.S. Attorney Sarcone stated, “We commend our federal and local partners for their diligent work in developing these important investigations into strong cases that held multiple defendants accountable for their conduct in the Northern District of New York and beyond.” 

    FBI Special Agent in Charge Tremaroli stated, “This sentence is the direct result of the commitment by our federal, state, and local law enforcement partners to aggressively pursue and charge those who willingly defraud our citizens and financial institutions. The FBI will continue to investigate and bring to justice these callous criminals to ensure they pay the price, instead of their victims.”

    These cases were investigated by the Federal Bureau of Investigation (FBI),  Homeland  Security Investigations (HSI), the New York State Police, the Endicott Police and various local police departments outside the Northern District of New York.  These cases were prosecuted by Assistant United States Attorney Kristen Grabowski.  

    MIL Security OSI –

  • MIL-OSI USA: Policy Briefing on the Property Insurance Crisis Hosted by Congresswoman Frederica Wilson

    Source: United States House of Representatives – Congresswoman Frederica S Wilson (24th District of Florida)

    Today, June 5th, 2025, Congresswoman Frederica Wilson (FL-24) hosted a policy briefing on the Property Insurance Crisis in Florida and across the nation. Congresswoman Frederica Wilson brought policy experts to discuss the rising costs of property insurance, its coverage, and the challenges consumers face when dealing with property insurance.

    “Everywhere I go in Florida, doesn’t matter what parts folks are from, people are concerned about our property insurance crisis. And with hurricane season just starting, causing a rush through the hearts of South Florida Families, the fear of the rising costs of homeowner’s insurance is real and tangible for folks,” Congresswoman Frederica Wilson said. “That’s why I introduced the Homeowners’ Defense Act and convened a policy briefing, because we need real solutions to this crisis. Property insurance has become too expensive, with limited options and many insurers refusing coverage. It’s time we tackle this issue head-on.”

    According to Insurify, Florida’s projected cost of property insurance averages about $11,000 a year.

    As part of the 119th Congress, Congresswoman Frederica Wilson introduced the Homeowners’ Defense Act.  The Act seeks to bolster state efforts in managing natural disaster risks, support insurance market stability, and encourage mitigation and preventive measures to reduce future losses.

    Joining Congresswoman Frederica Wilson in this briefing were Congressman Maxwell Frost (FL-10), Congressman Troy A. Carter, Sr. (LA-2), Congresswoman Nikema Williams (GA-5), and Congressman Jonathan Jackson (IL-1).

    “Florida’s property insurance crisis is pushing families to make impossible choices. I’ve heard from Central Floridians that they are forgoing coverage altogether because they can’t afford both healthcare and property insurance. It’s a shame that the property insurance crisis has put folks in this position,” said Congressman Maxwell Frost (FL-10). “And it’s leading to a dangerous situation as climate change creates even more devastating hurricane seasons. We need urgent, collective action from policymakers and industry leaders before this makes worse the ongoing housing crisis.”

    “The escalating cost of homeowners insurance is not just a coastal issue; it’s hitting families hard right here in Chicago and the First District. We’ve seen premiums jump by as much as 50% in Illinois in just a few short years. Many of my constituents, particularly those in historic neighborhoods with older homes, are facing a double whammy: skyrocketing rates and, in some cases, the inability to find coverage at all,” Congressman Jonathan Jackson said (IL-1). “We need to explore all avenues – from federal support for mitigation and reinsurance, like ideas in H.R. 827, to robust state oversight – to ensure that insurance remains accessible and affordable, and that homeowners are treated fairly.”

    “I was proud to join my friend Congresswoman Frederica Wilson today to confront one of the most pressing challenges facing homeowners across the country – skyrocketing property insurance costs. This is hitting working families in every corner of America, especially Louisiana, and it’s squeezing them out of homeownership. The briefing made one thing clear: as natural disasters become more prevalent, property and casualty insurance rates will continue to rise and impact more communities. We have more storms in more places that have historically never had this before. There will continue to be a strain on communities as people will be dropped from insurance coverage after sustaining damages. This is unacceptable. Property insurance should be fair, accessible, and affordable for everyone,” said Congressman Troy A. Carter, Sr. (LA-02).

    Congresswoman Nikema Williams said (GA-5), “Climate change’s impact on the insurance market is something I’ve experienced firsthand. After a hailstorm damaged my roof and those of my neighbors, I filed a claim—only to be labeled high-risk and dropped by my insurer. This is part of a growing trend of insurance companies pulling out of markets they consider too risky due to climate change. For families already struggling to get by, losing home insurance could mean losing the chance to build equity and generational wealth. If we leave this issue unaddressed—or worse, pretend it doesn’t exist—we put all homeowners at serious risk.”

    The panel included Doug Heller from the Consumer Federation of America, Robert Gordon from the American Property Casualty Insurance Association, and Baird Webel and Diane Horn from the Congressional Research Service. Alice Hill, the David M. Rubenstein senior fellow for energy and the environment at the Council on Foreign Relation, moderated the event.

    Vice Chairman of the Miami-Dade County Commission, Kionne McGhee, said “The crushing weight of mortgages, taxes, and insurance is already wiping out generational wealth. And with the high cost of property insurance, folks are struggling to even protect their families. Some insurance companies can raise rates and still stay within the law–decisions made behind closed doors with no regard for the people affected. For families with no savings, higher payments don’t mean just cutting back—it means choosing between skipping meals just to keep their homes. We need to address this property insurance crisis head-on for the sake of the families of Miami-Dade County and across the nation.”

    Douglas Heller, Director of Insurance at the Consumer Federation of America said, “Over the past several years, Americans have experienced an unprecedented increase in the cost of homeowners insurance and an equally unprecedented decrease in its availability. This is not only causing acute financial pain for millions of families, it is making homeownership less sustainable and less attainable. In order to address this crisis, as climate change increases risk across the country, we need to invest in loss mitigation and resilience, and we also need to demand better oversight and more scrutiny of the insurance companies that we rely on to protect our homes.”

    Robert Gordon, APCIA’s senior vice president of policy, research, and international  said, “APCIA commends Rep. Frederica Wilson, Rep. Maxwell Frost, Rep. Nikema Williams, Rep. Darren Soto, and Miami-Dade Board of County Commissioners Vice Chair Kionne McGhee for their interest in addressing factors impacting the cost of living, including housing and homeowners insurance.  The growing demographic shifts and property values to high-climate-risk areas, inflation in the cost to repair and replace property, climate change, legal system abuse, delayed regulatory approval of rate filings, and mandated coverages have collectively resulted in escalating insurance losses.  Insurance is a passthrough of those costs. While homeowners insurance is a relatively small percent of the overall cost of homeownership, APCIA is committed to working with housing groups and regulators on long-term solutions to improve the availability and affordability of insurance. APCIA is also committed to working with members of Congress on commonsense mitigation and resiliency solutions that will better protect consumers and slow the rate of increase in property losses.” 

    The Congressional Research Service has published multiple reports on the Property Insurance Crisis, including “Homeowners Insurance and California Wildfires,” “Natural Disasters and the Homeowners Insurance Market,” and ‘“Hearing on “The Factors Influencing the High Cost of Insurance for Consumers”’

    For photos and B-Roll of the event, click here.

    For the livestream of the event, click here.

    This event was held in Rayburn House Office Building; Room 2075.

    ###

    MIL OSI USA News –

  • MIL-OSI Security: Three Foreign Nationals Charged with Conspiracy and Possession with Intent to Distribute Almost Four Tons of Methamphetamine

    Source: Office of United States Attorneys

    SAN DIEGO – A federal complaint was filed today charging Erick Arriola, Baltazar Rodriguez Reyes and Eugenio Lizama, alleged drivers of drug-laden vans and a truck, with conspiring to distribute almost four tons of methamphetamine.

    It was one of the biggest seizures of methamphetamine in 2025 in the Southern District of California, and the most significant so far by the new Homeland Security Task Force San Diego, which was recently established by the Department of Justice and Department of Homeland Security at the request of President Trump.

    Among other goals, the task force was created to identify and target for prosecution transnational criminal organizations engaged in drug trafficking, money laundering, weapons trafficking, human trafficking and smuggling, homicide, extortion, and kidnapping.

    The complaint alleges that on June 2, 2025, federal law enforcement officials were conducting surveillance on four vehicles – which included two white panel vans, a white Ford F150 truck, and a semi-truck – as they congregated in a parking lot in the 8200 block of Otay Mesa Road.

    According to the complaint, bundles in each vehicle had been moved from the large semi-truck into the other vehicles while in the parking lot. The three defendants drove in separate directions before they were ultimately arrested by United States Border Patrol. Each vehicle was stuffed with large bundles of methamphetamine.

    Arriola, of El Salvador, was present in the United States despite being a felon convicted of DUI, battery of a spouse, and false imprisonment. Rodriguez Reyes and Lizama are Mexican nationals.

    “The recent formation of Homeland Security Task Force San Diego is an essential step to fulfilling the promises of Operation Take Back America,” said U.S. Attorney Adam Gordon, “Our Office will fully support these enhanced law enforcement partnerships to ensure the safety of our community.”

    “As a founding member of HSTF in San Diego, I’m thrilled to be working alongside our partners who have also committed resources to combatting transnational crime,” said Shawn Gibson, special agent in charge for HSI San Diego. “Cases under the HSTF will be a priority for me and staff as we all will continue to work together to secure our border and keep our communities safe.”

    “Collaboration between law enforcement agencies greatly helps to effectively combat transnational criminal organizations,” said Acting Chief Patrol Agent Jeffrey Stalnaker. “The leveraging of our unique capabilities amplifies our ability to safeguard the nation.”

    “When we combine our unique capabilities, authorities, strengths, and assets, we create a unified response to the expansive cartel threat,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “FBI San Diego will continue to collaborate with our law enforcement partners to reduce the growing epidemic of drug trafficking and violence in our community.”

    This case is being prosecuted by Assistant U.S. Attorney Kyle Martin of the U.S. Attorney’s recently created Narcoterrorism Unit.

    DEFENDANTS                                 Case Number 25mj3112                                          

    Erick Omar Arriola                                      Age 27                El Salvador

    Baltazar Rodriguez Reyes                           Age 49                Mexico

    Eugenio Lizama                                          Age 35                Mexico

    SUMMARY OF CHARGES

    Title 21, U.S.C., Sec. 841(a)(1), (b)(1)(B) – Possession with Intent to

    Distribute Methamphetamine

    Maximum penalty: Life; 10-year mandatory minimum sentence

    Title 21, U.S.C., Sec. 841(a)(1), 846 – Conspiracy to Distribute Methamphetamine

    Maximum penalty: Life; 10-year mandatory minimum sentence

    INVESTIGATING AGENCIES

    Homeland Security Investigations

    Federal Bureau of Investigation

    United States Border Patrol

    San Diego County Sheriff’s Department

    This case was investigated and prosecuted by the Homeland Security Task Force (HSTF) San Diego as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to, among other goals, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods.

    *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

    MIL Security OSI –

  • MIL-OSI USA: Q&A: Religious Freedom Must Not Be Taken for Granted

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    Q: What have you learned about the FBI’s bias towards American Catholics?

    A: From my top spot on the Senate Judiciary Committee, I’m pushing to get answers from the FBI about its efforts during the Biden administration to tie certain Americans of Catholic faith to violent extremist views. New information I recently released showed the anti-Catholic Richmond memo was widely distributed to more than 1,000 FBI employees across the country during the Biden administration. What’s more, the newly released records showed the targeting of Catholics based on biased sources included more than just a single memo. Records reveal the FBI produced many written products containing anti-Catholic terminology that hinged on information from the radical far-left Southern Poverty Law Center. This contradicts former FBI Director Christopher Wray’s misleading testimony to my questioning about these operations that have undermined the public trust in our institutions of government. I’m working to get to the bottom of the Richmond memo, including the FBI’s efforts to skirt congressional oversight. The American people deserve answers to help restore confidence that federal law enforcement agencies administer justice without fear or favor. Targeting Americans based on their religious faith crosses a constitutional guardrail enshrined in the Bill of Rights.

    Q: Is religious freedom in America at risk?

    A: For more than two centuries, the First Amendment protects freedom of religion. Specifically, the Establishment Clause prevents the government from establishing a state religion; and the Free Exercise Clause protects the right to practice religion freely. Unfortunately, the recent murders outside the Israeli embassy in Washington, D.C. and the attack on the Jewish community in Boulder aren’t isolated incidents. They expose a grave and present danger for people of religious faith, particularly antisemitic extremism. Since the brutal attack in Israel on Oct. 7, 2023, antisemitism is on the rise in the United States and around the world. During his first month back in the White House, President Trump signed an executive order to combat antisemitism. The Department of Justice formed a task force in February and zeroed in on incidents taking place on college campuses. I convened a Senate Judiciary Committee hearing in March to strongly rebuke the stunning acts of antisemitism happening on campuses and elsewhere. During his first administration, President Trump made religious freedom a top foreign policy to stand against religious intolerance, persecution and violence around the world. Closer to home, President Trump last month created the Religious Liberty Commission to foster appreciation for our founding principles of religious freedom, identify emerging threats and protect the free exercise of religion. The president appointed advisory board members  representing  religious, legal and lay leaders to produce a comprehensive report on the foundations of religious liberty in America and its impact on society leading up to the 250th anniversary of American independence on July 4, 2026. The commission also will discuss Supreme Court rulings on religious liberty and delve into the meaning of separation of church and state.

    Written public comments may be submitted in advance of its first meeting prior to June 15. Send comments to RLC@usdoj.gov, or by postal mail to U.S. Department of Justice, Office of the Associate Attorney General, 950 Pennsylvania Ave., N.W., Room 5706, Washington, D.C. 20530.

    MIL OSI USA News –

  • MIL-OSI USA: Grassley Investigates ‘Prohibited Access’ Files at FBI, Demands Accountability for Document Destruction and Obstruction in Mueller Investigation

    US Senate News:

    Source: United States Senator for Iowa Chuck Grassley

    WASHINGTON – Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) is following up on recent revelations in a declassified Federal Bureau of Investigation (FBI) analysis he released exposing the FBI for placing certain Crossfire Hurricane files under “Prohibited Access” status, potentially preventing most FBI agents, Congress and the Inspector General from accessing some FBI records.

    Grassley is demanding Attorney General Pam Bondi and FBI Director Kash Patel search for and produce all records related to Special Counsel Robert Mueller and the Biden family that may currently be under “Prohibited” or “Restricted” Access.

    “As I’m sure you are aware, the impact of parking records in a way that impedes, or in some cases prevents, responsive records from being produced to Congress pursuant to a valid request and during the course of court litigation, whether criminal or civil, is wide-ranging and potentially catastrophic to constitutional requirements,” Grassley wrote to Bondi and Patel. “Indeed, if the FBI has failed to take steps in the past to access records in ‘Restricted’ or ‘Prohibited’ status, the FBI has not fully responded to many years of my oversight requests.” 

    Grassley is also seeking records relating to current and former Department of Justice (DOJ)/FBI officials who may have committed serious misconduct by mishandling and destroying federal records, particularly related to Special Counsel Mueller’s investigation into the now-discredited Trump-Russia hoax.

    According to Freedom of Information Act disclosures, former Mueller team member Andrew Weissman deleted all of the data on his government phone multiple times over the course of the Meuller investigation.

    Additionally, whistleblowers allege the following of Special Agent (SA) Walter Giardina, who played a significant role in the investigation and prosecution of Trump advisor Peter Navarro, as well as Arctic Frost, Crossfire Hurricane, Special Counsel Mueller’s investigation, and the Dan Scavino, Roger Stone and Hillary Clinton cases:   

    • SA Giardina was an initial recipient of the Steele Dossier and falsely said that the report was corroborated as true.
    • SA Giardina stated openly his animosity toward President Trump and made known his personal motivation to investigate Trump.
    • SA Giardina electronically wiped the laptop he was assigned while working for Special Counsel Mueller outside of established protocol for record preservation, raising the possibility that he destroyed government records. The destruction of the laptop was reported to the DOJ Office of Inspector General.   
    • SA Giardina instructed agents to use false Emolument Clause predication on President Trump to “dig around.” 
    • SA Giardina was a case agent assigned to the Crimson River case, later changed to Red Maasari. This case was leaked, by whom it is not known, to the Washington Post in August 2024, roughly 90 days before the presidential election, in an attempt to falsely discredit President Trump.

    Read Grassley’s full letter to Bondi and Patel HERE.

    -30-

    MIL OSI USA News –

  • MIL-OSI USA: Five Highs Gang Members Convicted by Jury of RICO Conspiracy, Drug Trafficking, and Firearms Offenses

    Source: US State Government of Utah

    Following a three-week trial, a federal jury in Minneapolis convicted five Minnesota men today for their involvement in the Highs — a violent Minneapolis street gang — and in gang-related murders, shootings, and narcotics distribution.

    According to court documents and evidence presented at trial, defendants Tyreese Giles, 24, Josiah Taylor, 31, Trevaun Robinson, 29, William Banks, 35, and Gregory Brown, 35, all of Minneapolis, were members of various “cliques,” or subsets, of the Highs — a criminal enterprise that controlled territory north of West Broadway Avenue in Minneapolis. Members of the Highs committed murders, narcotics trafficking, weapons violations, burglaries, assaults, and robberies on behalf of the enterprise. As part of their Highs membership, the defendants were expected to retaliate against their rivals, the Lows gang, which operated south of West Broadway Avenue. These two gangs had been in a gang war that spanned years and alleged members of the Lows gang have been separately charged with federal crimes, including racketeering charges.

    “This is the second successful trial against members and associates of the Highs gang in this case in the last three weeks,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “This case and these trials show the Department’s relentless determination to hold accountable criminal enterprises that use murder and intimidation to exert power and control narcotics territory. We will continue to dismantle violent gangs and secure justice for victims and their loved ones in communities around the country.”

    “The Highs have long terrorized north Minneapolis, bringing drugs, violence, and murder,” said Acting U.S. Attorney Joseph H. Thompson for the District of Minnesota. “This verdict represents yet another step in our fight against gang violence. I want to thank the coalition of federal, state, and local law enforcement partners who joined together to bring down this violent criminal street gang. I also want to thank the Justice Department’s Violent Crime & Racketeering Section for lending their expertise and partnering with the U.S. Attorney’s Office on our RICO cases.”

    “This case is a powerful example of how we use federal racketeering laws to take down violent gangs at the center of community violence,” said Acting Director Daniel Driscoll of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “These individuals relied on firearms, retaliation, and drug trafficking to fuel chaos and assert fear and dominance over their neighborhoods. ATF special agents worked closely with our partners to map the gang’s structure and document their vicious acts of violence, to bring the full weight of the law against its members. We will continue to use every tool available to protect the public and hold violent offenders accountable.”

    “The verdict today reflects the United States Postal Inspection Service’s (USPIS) dedication to building great partnerships with other federal agencies, as well as state and county law enforcement, to bring violent criminals in our communities to justice,” said Acting Inspector in Charge Steve Hodge of USPIS.

    “As financial investigators, IRS Criminal Investigation brings a unique skill set to dismantling violent criminal enterprises,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation Chicago Field Office. “Our special agents are experts in exposing how criminal organizations move and hide their illicit funds. By following the money, we developed critical financial evidence on significant fentanyl suppliers. As an agency on the RICO task force to combat violent crime, IRS-CI will continue to collaborate with our federal, state, and local partners to make a noticeable impact in our community. These convictions are a critical step in restoring safety and stability to the streets of Minneapolis and maintaining the marked decrease in violence in our community.”

    As proven at trial, the gang war escalated when, on Sept. 9, 2021, a prominent Highs member was shot and killed at a barbershop in Minneapolis. About two hours later, suspecting that the Lows were responsible for the killing, defendant Giles traveled to Pennwood Market in Lows territory. Once there, Giles, who was dressed in black and wearing a mask covering his face, shot and killed a Lows member. He fired the fatal shot into the victim’s back before he attempted to flee from the scene.

    Evidence at trial tied defendant Robinson to two shootings — one into a crowd of individuals in downtown Minneapolis on July 7, 2019, and another in the parking lot of Merwin Liquors, a Highs hangout, on April 2, 2022.

    Defendants Taylor and Banks trafficked drugs, including fentanyl, on behalf of the Highs. Evidence proved that Brown was a high-level narcotics supplier for the Highs and coordinated trips to and from Arizona for Highs members to obtain tens of thousands of fentanyl pills to sell on the streets of Minneapolis. Each defendant was arrested in possession of narcotics, including fentanyl, methamphetamine, and oxycodone, and one possessed a firearm in furtherance of their narcotics trafficking.

    The jury convicted defendants Giles, Robinson, Banks, And Brown of Racketeering Influenced and Corrupt Organizations (RICO) Conspiracy. Defendants Taylor and Banks were also convicted of drug trafficking conspiracy. The jury convicted Taylor of the separate crime of possessing a firearm in furtherance of a drug trafficking crime.

    A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    This is the second of several trials in this case, which charged over 40 defendants with RICO conspiracy, narcotics trafficking, firearms offenses, and other charges related to their activities as members and associates of the Highs gang. Nine defendants are awaiting trial.

    The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to the investigation.

    Trial Attorneys Brian Lynch and Alyssa Levey-Weinstein of the Justice Department’s Violent Crime & Racketeering Section and Assistant U.S. Attorneys Thomas Lopez-Calhoun and Carla Baumel of the District of Minnesota are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI Security: FBI New York Offering a Reward for Information Leading to the Arrest and Conviction of Man Wanted for Conspiracy to Murder

    Source: US FBI

    The FBI is offering a reward of up to $10,000 for information leading to the arrest and conviction of Joel Myrie. Myrie, who is also known by the alias “Pookie,” is wanted for his alleged involvement in a drive-by shooting that occurred on June 19, 2022, in the Canarsie area of Brooklyn, New York. It is alleged that Myrie—a member of the No Love City (NLC), a Brooklyn-based subset of the violent Gangster Disciples (GD) street gang—and others attempted to murder a rival gang member by firing two firearms into a crowded neighborhood street. As a result of this attempted murder, a 28-year-old victim was shot and injured.

    Myrie was indicted on charges of conspiracy to murder and attempted murder in aid of racketeering; assault in aid of racketeering; and possessing, using, brandishing, and discharging a firearm during a crime of violence in the United States District Court for the Eastern District of New York, Brooklyn, New York, and a federal warrant was issued for his arrest on August 29, 2024.

    On September 10, 2024, as part of his efforts to evade arrest, Myrie was seen wearing a dress and long-haired wig. It is unknown if Myrie has maintained his altered appearance.

    If you have any information concerning Myrie, please contact your local FBI office or call 1-800-CALL-FBI (1-800-225-5324). You can report a tip online at tips.fbi.gov.

    MIL Security OSI –

  • MIL-OSI Security: Five Highs Gang Members Convicted by Jury of RICO Conspiracy, Drug Trafficking, and Firearms Offenses

    Source: United States Attorneys General 1

    Following a three-week trial, a federal jury in Minneapolis convicted five Minnesota men today for their involvement in the Highs — a violent Minneapolis street gang — and in gang-related murders, shootings, and narcotics distribution.

    According to court documents and evidence presented at trial, defendants Tyreese Giles, 24, Josiah Taylor, 31, Trevaun Robinson, 29, William Banks, 35, and Gregory Brown, 35, all of Minneapolis, were members of various “cliques,” or subsets, of the Highs — a criminal enterprise that controlled territory north of West Broadway Avenue in Minneapolis. Members of the Highs committed murders, narcotics trafficking, weapons violations, burglaries, assaults, and robberies on behalf of the enterprise. As part of their Highs membership, the defendants were expected to retaliate against their rivals, the Lows gang, which operated south of West Broadway Avenue. These two gangs had been in a gang war that spanned years and alleged members of the Lows gang have been separately charged with federal crimes, including racketeering charges.

    “This is the second successful trial against members and associates of the Highs gang in this case in the last three weeks,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “This case and these trials show the Department’s relentless determination to hold accountable criminal enterprises that use murder and intimidation to exert power and control narcotics territory. We will continue to dismantle violent gangs and secure justice for victims and their loved ones in communities around the country.”

    “The Highs have long terrorized north Minneapolis, bringing drugs, violence, and murder,” said Acting U.S. Attorney Joseph H. Thompson for the District of Minnesota. “This verdict represents yet another step in our fight against gang violence. I want to thank the coalition of federal, state, and local law enforcement partners who joined together to bring down this violent criminal street gang. I also want to thank the Justice Department’s Violent Crime & Racketeering Section for lending their expertise and partnering with the U.S. Attorney’s Office on our RICO cases.”

    “This case is a powerful example of how we use federal racketeering laws to take down violent gangs at the center of community violence,” said Acting Director Daniel Driscoll of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “These individuals relied on firearms, retaliation, and drug trafficking to fuel chaos and assert fear and dominance over their neighborhoods. ATF special agents worked closely with our partners to map the gang’s structure and document their vicious acts of violence, to bring the full weight of the law against its members. We will continue to use every tool available to protect the public and hold violent offenders accountable.”

    “The verdict today reflects the United States Postal Inspection Service’s (USPIS) dedication to building great partnerships with other federal agencies, as well as state and county law enforcement, to bring violent criminals in our communities to justice,” said Acting Inspector in Charge Steve Hodge of USPIS.

    “As financial investigators, IRS Criminal Investigation brings a unique skill set to dismantling violent criminal enterprises,” said Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation Chicago Field Office. “Our special agents are experts in exposing how criminal organizations move and hide their illicit funds. By following the money, we developed critical financial evidence on significant fentanyl suppliers. As an agency on the RICO task force to combat violent crime, IRS-CI will continue to collaborate with our federal, state, and local partners to make a noticeable impact in our community. These convictions are a critical step in restoring safety and stability to the streets of Minneapolis and maintaining the marked decrease in violence in our community.”

    As proven at trial, the gang war escalated when, on Sept. 9, 2021, a prominent Highs member was shot and killed at a barbershop in Minneapolis. About two hours later, suspecting that the Lows were responsible for the killing, defendant Giles traveled to Pennwood Market in Lows territory. Once there, Giles, who was dressed in black and wearing a mask covering his face, shot and killed a Lows member. He fired the fatal shot into the victim’s back before he attempted to flee from the scene.

    Evidence at trial tied defendant Robinson to two shootings — one into a crowd of individuals in downtown Minneapolis on July 7, 2019, and another in the parking lot of Merwin Liquors, a Highs hangout, on April 2, 2022.

    Defendants Taylor and Banks trafficked drugs, including fentanyl, on behalf of the Highs. Evidence proved that Brown was a high-level narcotics supplier for the Highs and coordinated trips to and from Arizona for Highs members to obtain tens of thousands of fentanyl pills to sell on the streets of Minneapolis. Each defendant was arrested in possession of narcotics, including fentanyl, methamphetamine, and oxycodone, and one possessed a firearm in furtherance of their narcotics trafficking.

    The jury convicted defendants Giles, Robinson, Banks, And Brown of Racketeering Influenced and Corrupt Organizations (RICO) Conspiracy. Defendants Taylor and Banks were also convicted of drug trafficking conspiracy. The jury convicted Taylor of the separate crime of possessing a firearm in furtherance of a drug trafficking crime.

    A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    This is the second of several trials in this case, which charged over 40 defendants with RICO conspiracy, narcotics trafficking, firearms offenses, and other charges related to their activities as members and associates of the Highs gang. Nine defendants are awaiting trial.

    The ATF, FBI, Minneapolis Police Department, IRS Criminal Investigation, U.S. Postal Inspection Service, Hennepin County Sheriff’s Office, Minnesota Bureau of Criminal Apprehension, and Minnesota Department of Corrections are investigating the case, with assistance from the U.S. Marshals Service, DEA, Homeland Security Investigations, and the Hennepin County Attorney’s Office. The Ramsey County Sheriff’s Office, Dakota County Sheriff’s Office, St. Paul Police Department, and numerous other law enforcement agencies contributed to the investigation.

    Trial Attorneys Brian Lynch and Alyssa Levey-Weinstein of the Justice Department’s Violent Crime & Racketeering Section and Assistant U.S. Attorneys Thomas Lopez-Calhoun and Carla Baumel of the District of Minnesota are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI USA: Elon Musk Confirms Rep. Dan Goldman’s Suspicion – Pam Bondi Is Hiding the Epstein Files to Protect Donald Trump

    Source: US Congressman Dan Goldman (NY-10)

    Last Month, Goldman Sent Letter of Inquiry to Justice Department Demanding Unredacted Release of Files Containing Trump’s Name and Explanation of Stonewalling 

     

    Read the Letter Here 

     

    Watch Rep. Goldman’s Interview Here 

     

    Goldman: “I write to express my grave concern about what appears to be a concerted effort by you to delay and even prevent the release of the Jeffrey Epstein Files in their entirety – potentially at the direction of the sitting President of the United States, Donald J. Trump.” 

    There you have it – Elon Musk just confirmed Rep. Dan Goldman’s suspicion that Attorney General Pam Bondi and the Department of Justice were stonewalling the promised release of the Epstein Files and had agents working around the clock to redact instances of President Donald Trump’s name.  

    “I write to express my grave concern about what appears to be a concerted effort by you to delay and even prevent the release of the Jeffrey Epstein Files in their entirety – potentially at the direction of the sitting President of the United States, Donald J. Trump,” Congressman Goldman wrote in May 2025. 

    Following the broadly ridiculed release of The Epstein Files: Part 1 on February 27, 2025, AG Bondi demanded that the FBI deliver the complete Epstein Files within 24 hours to DOJ, as well as a comprehensive report from FBI Director Patel within 14 days. It has now been 74 days since Bondi issued those directives, yet the Department has not released the report despite months-old reporting that the FBI Field Office in New York has delayed other investigations to review and redact information for public release. The Congressman questioned if this delay may be related to President Trump’s long-running relationship with Jeffrey Epstein. 

    “The convergence of your unexplained delay in releasing the Epstein Files, the reporting nearly two months ago that numerous FBI agents were working overtime to redact the materials, President Trump’s well-documented affiliation with Epstein, and his view that the Department of Justice is his personal law firm raises serious questions about whether President Trump has intervened to prevent the public release of the Epstein Files in order to hide his own embarrassing and potentially criminal conduct,” Congressman Goldman continued. 

    Attorney General Bondi’s oath of office requires her to represent the United States’ interest without fear or favor, not protect the President’s embarrassing or even criminal behavior from being made public. Congressman Goldman requested that Attorney General Bondi inform Congress of whether the White House or Donald Trump himself has sought to intervene in the case in any way, as well as to provide a detailed timeline for the release of the Epstein Files. 

    “I look forward to your response to this matter of intense public interest. Both Congress and the American people are eager for you to follow through on your promise of transparency about the Epstein Files,” the Congressman concluded. 

    Read the full letter here or below: 

    Dear Attorney General Bondi, 

    I write to express my grave concern about what appears to be a concerted effort by you to delay and even prevent the release of the Jeffrey Epstein Files in their entirety – potentially at the direction of the sitting President of the United States, Donald J. Trump.  

    On February 27, 2025, to much fanfare, the Department of Justice under your leadership released a trove of already-public documents related to the Jeffrey Epstein 

    case titled The Epstein Files: Phase 1. This document dump, which was redacted ostensibly to “protect victims,” was sold to the American people as a fulfillment of President Trump’s promise of government transparency. It was rightly met, however, with widespread ridicule from across the political spectrum as a ham-handed attempt to gaslight the American people. 

    Shortly after the underwhelming ‘Phase 1’ release, you sent a letter to FBI Director Kash Patel attempting to pin blame on the FBI’s New York field office for the missing material. In that letter, also dated February 27, 2025, you demanded that the FBI deliver, within 24 hours, “the full and complete Epstein files…including all records, documents, audio and video recordings, and materials related to Jeffrey Epstein and his clients, regardless of how such information was obtained.” You went on to clearly state that, “[t]here will be no withholdings or limitations to my or your access.” You further demanded a “comprehensive report” from the FBI Director “within 14 days.” Director Patel subsequently indicated his intent to comply with your request in a post on X: “There will be no cover-ups, no missing documents, and no stone left unturned.” 

    It is now 74 days past the issuance of both your 24-hour demand and 14-day deadline for a comprehensive report, yet you have provided no additional materials nor an explanation for the delay. Reporting from March 21, 2025, indicates that the FBI field office in New York, presumably at your direction, delayed other investigations in order to work around the clock to review and redact information contained in the Epstein Files for release.3 Although you stated on May 8, 2025, that “[t]here are thousands of videos of Epstein with children or child porn,” which would require redaction to protect the victims’ identities, it simply cannot take this long for dozens of agents working around the clock to make the necessary redactions. 

    Further, extensive reporting has revealed that President Donald Trump had a lengthy and close relationship with both Jeffrey Epstein and Epstein’s co-conspirator Ghislaine Maxwell, including being named in Jeffrey Epstein’s flight logs as having flown on Epstein’s private jet at least seven times between 1993 and 1997. In 2002, President Trump was quoted as saying, “I’ve known Jeff for fifteen years. Terrific guy… He’s a lot of fun to be with. It is even said that he likes beautiful women as much as I do, and many of them are on the younger side.”5 Moreover, Epstein’s personal address book, leaked in 2009 by an Epstein employee, contained 14 phone numbers for President Trump, his wife, Melania, and members of his staff. 

    The convergence of your unexplained delay in releasing the Epstein Files, the reporting nearly two months ago that numerous FBI agents were working overtime to redact the materials, President Trump’s well documented affiliation with Epstein, and his view that the Department of Justice is his personal law firm raises serious questions about whether President Trump has intervened to prevent the public release of the Epstein Files in order to hide his own embarrassing and potentially criminal conduct. 

    As a former 10-year DOJ prosecutor, I remind you that, as Attorney General, your oath of office requires you to represent the United States’ interest without fear or favor, not President Trump’s personal interest. That obligation to the American people requires the immediate release in their entirety of the Epstein Files in your possession, subject to appropriate redactions related to victims and minors. To be clear, there is no proper basis to redact the name, identify, or likeness of President Trump. 

    If you have been directed to redact instances of President Trump’s name or likeness that are included in the Epstein Files, then your oath of office and your commitment to transparency requires you to inform the American people of that directive. As part of Congress’ oversight authority provided by the Constitution of the United States, I request that you respond, in writing, to the following questions no later than June 2, 2025: 

    1. Are you or the Office of the Attorney General (OAG) in possession of all of the Epstein Files in the FBI’s custody and control? 

    2. Have the necessary redactions of victims’ identities and likenesses been completed? If not, why not?  

    3. Has the name, identity or likeness of President Donald Trump been redacted? If so, why?  

    4. Have you, OAG, or any other member of the DOJ been contacted by President Trump, anyone working in the White House, or another agent of President Trump’s about the Epstein Files?  

      1. If so, did they request that you or your staff prevent the release of the Epstein Files? 

      2. Did they request that you redact the name, identity or likeness of President Trump from the Epstein Files prepared to be released publicly pursuant to your previous promise?  

    5. If not, why haven’t you released the Epstein Files as you promised to do in February?  

    6. If you do still intend to release the Epstein Files, please provide a detailed timeline of your plan to do so. 

    I look forward to your response to this matter of intense public interest. Both Congress and the American people are eager for you to follow through on your promise of transparency about the Epstein Files. 

    ### 

    MIL OSI USA News –

  • MIL-OSI USA: Federal Jury Convicts Pakistani Weapons Smuggler of Transporting Iranian Advanced Conventional Weapons Destined for the Houthis in Yemen

    Source: US State of California

    A federal jury convicted a Pakistani national today on charges related to smuggling Iranian-made advanced conventional weaponry destined for the Houthis in Yemen and threatening multiple witnesses.

    According to court records and evidence presented at trial, on the night of Jan. 11, 2024, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard Maritime Security Response Team East, boarded an unflagged dhow, a small vessel, in the Arabian Sea off the coast of Somalia. The U.S. boarding team encountered 14 individual mariners on the vessel, including the captain, Muhammad Pahlawan, 49.

    During a search of the dhow, the U.S. boarding team located and seized Iranian-made advanced conventional weaponry, including ballistic missile components, anti-ship cruise missile components, and a warhead. The type of weaponry found aboard the dhow is consistent with the weaponry used by the Houthi rebel forces during the time of the charged conspiracy against merchant ships and U.S. military ships in the Red Sea and Gulf of Aden after the October 7 Hamas attack in Israel.  During the interdiction, Pahlawan lied to the boarding team, instructed other crewmembers to lie, and eventually threatened the lives of his crewmembers and their families.

    Pahlawan’s January 2024 trip was part of a larger operation. From in or around August 2023 through in or around January 2024, Pahlawan worked with two Iranian brothers, Shahab Mir’kazei (Shahab), and Yunus Mir’kazei (Yunus), affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC) to smuggle materials from Iran to the Houthi rebel forces in Yemen. Pahlawan completed multiple smuggling voyages, coordinated and funded by Shahab and Yunus, by traveling with cargo from Iran to the coast of Somalia and transporting that cargo to another vessel for a nighttime ship-to-ship transfer. Pahlawan worked with Shahab and Yunus to prepare the dhow for these smuggling voyages, received specific coordinates from them for the ship-to-ship transfers, and received multiple payments from them for his role in the smuggling operation.

    Pahlawan was convicted of: conspiring to provide material support and resources to terrorists, providing material support and resources to Iran’s weapons of mass destruction program, providing material support to the Islamic Revolutionary Guard Corps’s weapons of mass destruction program, conspiring to and indeed transporting explosive devices to the Houthis knowing those explosives would be used to cause harm, and threatening his crew. He is scheduled to be sentenced on Sept. 22 and most statutes of conviction include a maximum penalty of 20 years in prison. A federal district court judge will determine sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

    Sue J. Bai, head of the Justice Department’s National Security Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, Assistant Director Donald M. Holstead of the FBI’s Counterterrorism Division; and Assistant Director in Charge Steven J. Jensen of the FBI Washington Field Office made the announcement.

    Assistant U.S. Attorneys Troy A. Edwards Jr. and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Joseph N. Kaster of the National Security Division’s Counterterrorism Section are prosecuting the case. Former Eastern District of Virginia prosecutor Danya Atiyeh and former National Security Division Trial Attorney Lesley Woods supported the case.

    The following government agencies provided invaluable support to the case: the Justice Department’s Office of International Affairs, the Naval Criminal Investigative Service, the Department of Defense, the Diplomatic Security Service, the Department of Homeland Security, and the Department of State.

    MIL OSI USA News –

  • MIL-OSI Security: FBI and Local Partners Interrupt IED and Mass Shooting Event

    Source: US FBI

    The FBI Portland Field Office and local law enforcement partners arrested a Columbia County, Oregon, juvenile who conspired to conduct an improvised explosive attack and mass shooting at the Three Rivers Mall in Kelso, Washington, on May 22, 2025.

    The teen, whose name will not be released due to an effort to limit public disclosure of a minor, was arrested on the morning of May 22, 2025, by deputies from the Columbia County Sheriff’s Office.

    The detailed and imminent attack plans were reported to the FBI on May 19, 2025. Immediately, the FBI began working with our partners to identify the suspect who was responsible for the threat. The subject was identified the next day, May 20, as a juvenile Columbia County resident who shared nihilistic violent extremist ideology and the plans in online chats. The suspect was placed under court-authorized surveillance for public
    safety concerns, and a federal search warrant was planned and executed on May 22, 2025, prior to the arrest.

    The suspect demonstrated the intent and means to carry out their plan, which included precise details such as a map of the mall, a route the shooter would follow, a plan to use an improvised explosive device commonly known as a chlorine bomb to incite panic, and then to shoot mall patrons as they were exiting the movie theatre before ultimately committing suicide at a pre-determined location in the mall.

    An alarming amount of indicators of a cogent path to violence were met—at no point in this plan did it seem like the suspect wouldn’t follow through with their plans. 

    “This plot was as serious as it gets,” said FBI Portland Special Agent in Charge Douglas A. Olson. “We, along with our partners, moved swiftly to interrupt this violent plan and to protect our community.” 

    Initial contact with the subject was made by the FBI, however the arrest was made by local law enforcement on state charges.

    The FBI encourages the public to report suspicious behavior to law enforcement and for parents to engage with their children and have an open dialogue about their online activity.

    The Columbia County District Attorney’s office is prosecuting this case.

    MIL Security OSI –

  • MIL-OSI Security: Federal Jury Convicts Pakistani Weapons Smuggler of Transporting Iranian Advanced Conventional Weapons Destined for the Houthis in Yemen

    Source: United States Attorneys General 7

    A federal jury convicted a Pakistani national today on charges related to smuggling Iranian-made advanced conventional weaponry destined for the Houthis in Yemen and threatening multiple witnesses.

    According to court records and evidence presented at trial, on the night of Jan. 11, 2024, U.S. Central Command Navy forces operating from the USS LEWIS B. PULLER, including Navy SEALs and members of the U.S. Coast Guard Maritime Security Response Team East, boarded an unflagged dhow, a small vessel, in the Arabian Sea off the coast of Somalia. The U.S. boarding team encountered 14 individual mariners on the vessel, including the captain, Muhammad Pahlawan, 49.

    During a search of the dhow, the U.S. boarding team located and seized Iranian-made advanced conventional weaponry, including ballistic missile components, anti-ship cruise missile components, and a warhead. The type of weaponry found aboard the dhow is consistent with the weaponry used by the Houthi rebel forces during the time of the charged conspiracy against merchant ships and U.S. military ships in the Red Sea and Gulf of Aden after the October 7 Hamas attack in Israel. During the interdiction, Pahlawan lied to the boarding team, instructed other crewmembers to lie, and eventually threatened the lives of his crewmembers and their families.

    Pahlawan’s January 2024 trip was part of a larger operation. From in or around August 2023 through in or around January 2024, Pahlawan worked with two Iranian brothers, Shahab Mir’kazei (Shahab), and Yunus Mir’kazei (Yunus), affiliated with Iran’s Islamic Revolutionary Guard Corps (IRGC) to smuggle materials from Iran to the Houthi rebel forces in Yemen. Pahlawan completed multiple smuggling voyages, coordinated and funded by Shahab and Yunus, by traveling with cargo from Iran to the coast of Somalia and transporting that cargo to another vessel for a nighttime ship-to-ship transfer. Pahlawan worked with Shahab and Yunus to prepare the dhow for these smuggling voyages, received specific coordinates from them for the ship-to-ship transfers, and received multiple payments from them for his role in the smuggling operation.

    Pahlawan was convicted of: conspiring to provide material support and resources to terrorists, providing material support and resources to Iran’s weapons of mass destruction program, providing material support to the Islamic Revolutionary Guard Corps’s weapons of mass destruction program, conspiring to and indeed transporting explosive devices to the Houthis knowing those explosives would be used to cause harm, and threatening his crew. He is scheduled to be sentenced on Sept. 22 and most statutes of conviction include a maximum penalty of 20 years in prison. A federal district court judge will determine sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

    Sue J. Bai, head of the Justice Department’s National Security Division, U.S. Attorney Erik S. Siebert for the Eastern District of Virginia, Executive Assistant Director Jodi Cohen of the FBI’s National Security Branch; and Assistant Director in Charge Steven J. Jensen of the FBI Washington Field Office made the announcement.

    Assistant U.S. Attorneys Troy A. Edwards Jr. and Gavin R. Tisdale for the Eastern District of Virginia and Trial Attorney Joseph N. Kaster of the National Security Division’s Counterterrorism Section are prosecuting the case. Former Eastern District of Virginia prosecutor Danya Atiyeh, former U.S. Attorney for the Eastern District of Virginia Jessica Aber, and former National Security Division Trial Attorney Lesley Woods supported the case.

    The following government agencies provided invaluable support to the case: the Justice Department’s Office of International Affairs, the Naval Criminal Investigative Service, the Department of Defense, the Diplomatic Security Service, the Department of Homeland Security, and the Department of State.

    MIL Security OSI –

  • MIL-OSI: IDT Corporation Reports Third Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

    Gross Profit +15% Year-over-Year to $112 MM; Record Gross Profit Margin of 37.1%
    Income from Operations +133% to $27 MM; Adjusted EBITDA +57% to $32 MM
    GAAP EPS Increased to $0.86 from $0.22; Non-GAAP EPS Increased to $0.90 from $0.38

    NEWARK, NJ, June 05, 2025 (GLOBE NEWSWIRE) — IDT Corporation (NYSE: IDT), a global provider of fintech, cloud communications, and traditional communications solutions, today reported results for its third quarter fiscal year 2025, the three months ended April 30, 2025.

    THIRD QUARTER HIGHLIGHTS

    (Throughout this release, unless otherwise noted, results for the third quarter of fiscal year 2025 (3Q25) are compared to the third quarter of fiscal year 2024 (3Q24). All earnings per share (EPS) and other ‘per share’ results are per diluted share.)

      ● Key Businesses / Segments
      ○ NRS
      ■ Recurring revenue: +23% to $29.4 million;
      ■ Income from operations: +29% to $6.2 million;
      ■ Adjusted EBITDA: +29% to $7.2 million;
      ■ ‘Rule of 40’ score: 49;
      ○ BOSS Money / Fintech segment
      ■ BOSS Money transactions: +27% to 6.0 million;
      ■ BOSS Money revenue: +25% to $34.4 million;
      ■ Fintech segment gross profit: +31% to $22.6 million;
      ■ Fintech segment income from operations: +$4.9 million, to $4.3 million;
      ■ Fintech segment Adjusted EBITDA: +$4.8 million, to $5.0 million;
      ○ net2phone
      ■ Subscription revenue: +7% to $21.5 million (+11% on a constant currency basis);
      ■ Income from operations: +188% to $1.4 million;
      ■ Adjusted EBITDA: +50% to $3.2 million;
      ○ Traditional Communications
      ■ Gross profit: +5% to $43.4 million;
      ■ Income from operations: +39% to $17.3 million;
      ■ Adjusted EBITDA: +30% to $19.3 million;
      ● IDT Consolidated
      ○ Revenue: +1% to $302.0 million;
      ○ Gross profit (GP) / margin: GP +15% to $112.0 million; GP margin +470 bps to 37.1%;
      ○ Income from operations: +133% to $26.6 million;
      ○ GAAP EPS: Increased to $0.86 from $0.22;
      ○ Non-GAAP EPS: Increased to $0.90 from $0.38;
      ○ Adjusted EBITDA: +57% to $32.2 million;
      ○ CapEx: +14% to $5.4 million.

    REMARKS BY SHMUEL JONAS, CEO

    IDT’s third quarter was solid, with strong year-over-year gains, while slightly softer than our second quarter in part because of expected seasonal factors. Year-over-year revenue growth, and continued expansion of each of our business segments’ bottom-line results, drove a 133% year-over-year increase in consolidated income from operations, a 57% increase in consolidated Adjusted EBITDA, and a 290% increase in EPS.

    At NRS, recurring revenue increased 23% year-over-year, powered by a 37% revenue increase from NRS’ largest vertical, Merchant Services, and a 33% increase in SaaS Fees, which more than offset a 12% decrease in Advertising & Data revenue. Income from operations and Adjusted EBITDA were both up by 29% year-over-year, and the business has generated a record $32 million in Adjusted EBITDA over the past twelve months.

    Looking ahead, we continue to focus on developing new offerings that leverage the NRS platform to enable retailers to compete more effectively with large retail chains. For instance, independent neighborhood retailers have not yet meaningfully benefitted from the consumer shift to online ordering and delivery. We are working to change that by integrating our network with online ordering and delivery platforms, enabling retailers on the NRS network to provide hyper-fast local delivery of sundries and prepared foods. The 100 or so retailers we have signed up so far are already receiving, in aggregate, over 2000 delivery orders a week.

    BOSS Money, our remittance platform, increased transactions by 27% and revenue by 25%. The growth rates have been impacted by the deliberate shift we made last summer to prioritize gross profit per transaction in our retail channel rather than market share, and by a recent shift in customer preferences toward larger send amounts per remittance through fewer transactions. The Fintech segment, which includes BOSS Money and early stage fintech initiatives, generated over $5 million in Adjusted EBITDA – compared to $244 thousand in the year ago quarter. Looking ahead, Boss Money is working on initiatives to drive sustained long-term growth and innovations that reduce cross border friction and increase profitability.

    net2phone continued its steady progress with balanced growth in the U.S., Brazil, and Mexico. The team has done a great job growing its business while holding the line on overhead. net2phone’s Adjusted EBITDA margin reached 15% in 3Q25. net2phone began to offer its AI Agents this quarter and customers are already seeing the benefits, including enhanced efficiency. Even as we deploy AI Agents refined for specific market verticals, we are preparing to launch another AI-powered service which internally we refer to as ‘Coach.’ We think that it will be very successful.

    In our Traditional Communications segment, income from operations and Adjusted EBITDA both jumped by over 30% year-over-year to $17.3 million and $19.3 million, respectively, underscoring that this segment continues to be a long-term cash generator.

    I want to wrap up by thanking the millions of customers who put some of their hard-earned wages to work through our BOSS offerings, and the business customers around the world who rely on us to enhance their businesses and communications. Our ability to provide these services depends on the dedication of our employees who have been executing and innovating on so many fronts, and on our stockholders who entrust us with their capital. I am grateful for your continued patronage and support.

    (This release discloses certain Non-GAAP financial measures (Adjusted EBITDA, Non-GAAP EPS and NRS ‘Rule of 40’) as well as certain Key Performance Metrics (net2phone subscription revenue, netphone constant currency subscription revenue growth rate, net2phone operating margin, net2phone Adjusted EBITDA margin, NRS Monthly Average Recurring Revenue, and BOSS Money transactions and digital send volume). Please see the explanations of those measures and metrics, the reasons for their inclusion and reconciliations at the end of this release.)

    3Q25 RESULTS BY SEGMENT

    National Retail Solutions (NRS)

    National Retail Solutions (NRS)
    (Terminals and accounts at end of period. $ in millions, except for average revenue per terminal)

        3Q25     2Q25     3Q24     3Q25-3Q24
    (% Δ)    		  
    Terminals and payment processing accounts                                
    Active POS terminals     35,600       34,800       30,300       +17.6 %  
    Payment processing accounts     25,500       23,900       19,500       +31.1 %  
                                     
    Recurring revenue                                
    Merchant Services & Other   $ 19.7     $ 18.1     $ 14.4       +37.3 %  
    Advertising & Data   $ 5.9     $ 10.0     $ 6.7       (12.3   )%
    SaaS Fees   $ 3.9     $ 3.5     $ 2.9       +32.8   %
    Total recurring revenue   $ 29.4     $ 31.6     $ 24.0       +22.9 %  
    POS terminal sales   $ 1.7     $ 1.3     $ 1.8       (2.9   )%
    Total revenue   $ 31.1     $ 33.0     $ 25.7       +21.1 %  
                                     
    Monthly average recurring revenue per terminal   $ 279     $ 310     $ 271       +3.0   %
                                     
    Gross profit   $ 28.4     $ 30.3     $ 22.1       +28.4   %
    Gross profit margin     91.3 %     91.8 %     86.1 %     +520   bps
    Technology & development   $ 2.3     $ 2.2     $ 1.7       +32.5   %
    SG&A   $ 20.0     $ 19.0     $ 15.7       +27.8   %
    Income from operations   $ 6.2     $ 9.1     $ 4.8       +29.3   %
    Adjusted EBITDA   $ 7.2     $ 10.1     $ 5.6       +28.6   %
    CapEx   $ 1.9     $ 0.9     $ 0.9       +115.2   %


    NRS Take-Aways / Updates:

      ● NRS added approximately 900 net active terminals and approximately 1,600 net payment processing accounts during 3Q25. As mentioned in the prior quarter’s earnings release, net active terminal additions for 3Q25 included churn of approximately 300 terminals operating in seasonal stores.
      ● The 37% year-over-year increase in Merchant Services & Other revenue was driven by the increase in payment processing accounts, and by higher merchant services revenue per account, reflecting in part the ongoing, gradual migration of customer payment preference from cash to credit and debit cards.
      ● NRS Advertising & Data revenue declined 12.3% year-over-year due to NRS’ decision to slow sales to one large programmatic partner in order to limit potential bad debt risk exposure. NRS’ direct channel advertising sales, as well as sales to other programmatic partners, remained robust.
      ● NRS has begun rolling out the first of several planned integrations of its POS platform with leading online ordering and delivery services. The first integration, with DoorDash, went live this quarter.


    Fintech

    Fintech
    (Transactions and $s in millions, except for average revenue per transaction)

        3Q25     2Q25     3Q24     3Q25-3Q24
    (% Δ, $)    		  
    BOSS Money transactions     6.0       5.7       4.7         +27.0 %
                                     
    Fintech Revenue                                
    BOSS Money   $ 34.4     $ 33.5     $ 27.6         +24.7 %
    Other   $ 4.2     $ 3.3     $ 3.9         +7.0 %
    Total Revenue   $ 38.6     $ 36.8     $ 31.5         +22.5 %
                                     
    Gross profit   $ 22.6     $ 21.7     $ 17.3         +30.6 %
    Gross profit margin     58.5 %     58.9 %     54.9 %       +360 bps
    Technology & development   $ 2.2     $ 2.3     $ 2.5         (11.9 )%
    SG&A   $ 16.0     $ 16.3     $ 15.3         +5.2 %
    Income (loss) from operations   $ 4.3     $ 3.1     $ (0.6 )     +$ 4.9  
    Adjusted EBITDA   $ 5.0     $ 3.9     $ 0.2       +$ 4.8  
    CapEx   $ 0.8     $ 0.8     $ 1.0         (19.8 )%


    Fintech Take-Aways:

    ● The 27% increase in BOSS Money transactions comprised a 32% year-over-year increase in digital channel transactions and an 8% increase in retail channel transactions.
    ● BOSS Money revenue increased 25% year-over-year driven by a 31% increase in digital channel revenue.
    ● Digital channel send volume, or the amount of principal transferred by BOSS Money customers using the BOSS Money and BOSS Revolution apps, grew 40% year-over-year as customers increased their amount sent per transaction while reducing the frequency of transactions. BOSS Money is testing strategies to optimize pricing given this recent dynamic.
    ● The robust increases in the Fintech segment’s income from operations and Adjusted EBITDA were driven primarily by BOSS Money revenue and gross margin growth, coupled with improved operating leverage as BOSS Money continues to scale.


    net2phone

    net2phone
    (Seats in thousands at end of period. $ in millions)

        3Q25     2Q25     3Q24     3Q25-3Q24

    (% Δ)

    		  
    Seats     415       410       384       +7.9 %
                                     
    Revenue                                
    Subscription revenue   $ 21.5     $ 21.0     $ 20.0       +7.4 %
    Other revenue   $ 0.5     $ 0.5     $ 0.6       (25.9 )%
    Total Revenue   $ 22.0     $ 21.5     $ 20.7       +6.4 %
                                     
    Gross profit   $ 17.5     $ 17.0     $ 16.4       +6.9 %
    Gross profit margin     79.6 %     79.2 %     79.2 %     +40 bps
    Technology & development   $ 2.9     $ 2.8     $ 2.8       +4.8 %
    SG&A   $ 13.0     $ 13.0     $ 13.0       (0.3 )%
    Income from operations   $ 1.4     $ 1.1     $ 0.5       +188 %
    Adjusted EBITDA   $ 3.2     $ 2.9     $ 2.1       +50.2 %
    CapEx   $ 1.4     $ 1.8     $ 1.6       (12.5 )%


    net2phone Take-Aways:

      ● The 8% year over year increase in total seats served was powered by continued expansion in key markets led by the U.S., Brazil, and Mexico. CCaaS seats served, which generate significantly higher revenue and margin per seat, increased by 9% year-over year.
      ● Subscription revenue increased by 7% year-over-year. The increase was tempered by the FX impact of a strengthened U.S. dollar versus local currencies in Latin America. On a constant currency basis, subscription revenue increased by 11% year over year, significantly higher than its rate of seat growth, as net2phone focuses on increasing ARPU.
      ● Income from operations increased 188% and Adjusted EBITDA increased 50% year-over-year, as operating margin increased to 6% from 2%, and Adjusted EBITDA margin increased to 15% from 10% in 3Q24.
      ● In 3Q25, net2phone began to deploy AI Agents, scalable virtual assistants providing exceptional customer experiences across sales, support, and administrative tasks. AI Agents have the potential to become significant revenue growth drivers in the coming quarters.
      ● net2phone is also preparing to launch an AI-powered offering that analyzes interactions to deliver real-time insights and personalized coaching for optimized performance.


    Traditional Communications

    Traditional Communications
    ($ in millions)

        3Q25     2Q25     3Q24     3Q25-3Q24
    (% Δ)    		  
    Revenue                                
    IDT Digital Payments   $ 102.6     $ 101.6     $ 101.6       +1.0 %
    BOSS Revolution   $ 51.7     $ 53.3     $ 63.2       (18.1 )%
    IDT Global   $ 50.0     $ 51.3     $ 50.1       (0.0 )%
    Other   $ 5.9     $ 5.8     $ 6.9       (14.9 )%
    Total Revenue   $ 210.2     $ 212.0     $ 221.7       (5.2 )%
                                     
    Gross profit   $ 43.4     $ 43.1     $ 41.2       +5.3 %
    Gross profit margin     20.7 %     20.3 %     18.6 %     +210 bps
    Technology & development   $ 5.4     $ 5.4     $ 5.6       (4.3 )%
    SG&A   $ 20.5     $ 19.4     $ 22.7       (9.5 )%
    Income from operations   $ 17.3     $ 18.1     $ 12.5       39.2 %
    Adjusted EBITDA   $ 19.3     $ 20.2     $ 14.9       30.1 %
    CapEx   $ 1.3     $ 1.2     $ 1.2       +5.6 %


    Traditional Communications Take-Aways:

    ● Even as revenue decreased continuing an expected trend, gross profit increased year over year and sequentially.
    ● Income from operations and Adjusted EBITDA benefitted from the growth in gross profit and the reduction in SG&A expense.


    OTHER FINANCIAL RESULTS

    Consolidated results for all periods presented include corporate overhead. In 3Q25, Corporate G&A expense increased to $2.7 million from $2.3 million in 3Q24.

    As of April 30, 2025, IDT held $223.8 million in cash, cash equivalents, debt securities, and current equity investments. Also at April 30, 2025, current assets totaled $498.3 million and current liabilities totaled $287.2 million. The Company had no outstanding debt at the quarter end.

    Net cash provided by operating activities was $75.7 million in 3Q25 compared to $9.5 million in 3Q24. Exclusive of changes in customer funds deposits at IDT’s Fintech segment, net cash provided by operating activities was $66.1 million in 3Q25 compared to $8.2 million in 3Q24. The large, year-over-year increase in cash reflects, for the most part, the timing of disbursement prefunding payments made by IDT to cover anticipated BOSS Money weekly remittance activity.

    Capital expenditures increased to $5.4 million in 3Q25 from $4.7 million in 3Q24.

    DIVIDEND

    The Board of Directors of IDT Corporation has approved payment of a quarterly dividend of $0.06 on IDT’s Class A and Class B Common stock. Payment will be made on June 18, 2025 to stockholders of record at the close of business on June 9th.

    IDT EARNINGS ANNOUNCEMENT INFORMATION

    This release is available for download in the “Investors & Media” section of the IDT Corporation website (https://www.idt.net/investors-and-media) and has been filed on a current report (Form 8-K) with the SEC.

    IDT will host an earnings conference call beginning at 5:00 PM Eastern today with management’s discussion of results followed by Q&A with investors. To listen to the call and participate in the Q&A, dial 1-888-506-0062 (toll-free from the U.S.) or 1-973-528-0011 (international) and provide the following access code: 491722.

    A replay of the conference call will be available approximately three hours after the call concludes through June 19, 2025. To access the call replay, dial 1-877-481-4010 (toll-free from the U.S.) or 1-919-882-2331 (international) and provide this replay passcode: 52353. The replay will also be accessible via streaming audio at the IDT investor relations website.

    ABOUT IDT CORPORATION

    IDT Corporation (NYSE: IDT) is a global provider of fintech and communications solutions through a portfolio of synergistic businesses: National Retail Solutions (NRS), through its point-of-sale (POS) platform, enables independent retailers to operate more effectively while providing advertisers and marketers with unprecedented reach into underserved consumer markets; BOSS Money facilitates innovative international remittances and fintech payments solutions; net2phone provides enterprises and organizations with intelligently integrated cloud communications and contact center services across channels and devices; IDT Digital Payments and the BOSS Revolution calling service make sharing prepaid products and services and speaking with friends and family around the world convenient and reliable; and, IDT Global and IDT Express enable communications services to provision and manage international voice and SMS messaging.

    All statements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,” “anticipate,” “expect,” “plan,” “intend,” “estimate,” “target” and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors. Our filings with the SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extent permitted under applicable law, IDT assumes no obligation to update any forward-looking statements.

    CONTACT

    IDT Corporation Investor Relations
    Bill Ulrey
    william.ulrey@idt.net
    973-438-3838

    IDT CORPORATION

    CONSOLIDATED BALANCE SHEETS

        April 30,
    2025    		     July 31,
    2024    		  
        (Unaudited)        
        (in thousands, except per share data)  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 199,948     $ 164,557  
    Restricted cash and cash equivalents     123,129       90,899  
    Debt securities     18,683       23,438  
    Equity investments     5,187       5,009  
    Trade accounts receivable, net of allowance for credit losses of $8,416 at April 30, 2025 and $6,352 at July 31, 2024     43,084       42,215  
    Settlement assets, net of reserve of $1,869 at April 30, 2025 and $1,866 at July 31, 2024     25,160       22,186  
    Disbursement prefunding     43,381       30,736  
    Prepaid expenses     13,837       17,558  
    Other current assets     25,865       25,927  
    Total current assets     498,274       422,525  
    Property, plant, and equipment, net     38,980       38,652  
    Goodwill     26,454       26,288  
    Other intangibles, net     5,372       6,285  
    Equity investments     6,904       6,518  
    Operating lease right-of-use assets     2,013       3,273  
    Deferred income tax assets, net     16,106       35,008  
    Other assets     6,805       11,546  
    Total assets   $ 600,908     $ 550,095  
                     
    Liabilities, redeemable noncontrolling interest, and equity                
    Current liabilities:                
    Trade accounts payable   $ 17,250     $ 24,773  
    Accrued expenses     91,408       103,176  
    Deferred revenue     27,513       30,364  
    Customer funds deposits     121,765       91,893  
    Settlement liabilities     14,105       12,764  
    Other current liabilities     15,121       16,374  
    Total current liabilities     287,162       279,344  
    Operating lease liabilities     1,213       1,533  
    Other liabilities     1,682       2,662  
    Total liabilities     290,057       283,539  
    Commitments and contingencies                
    Redeemable noncontrolling interest     11,357       10,901  
    Equity:                
    IDT Corporation stockholders’ equity:                
    Preferred stock, $.01 par value; authorized shares—10,000; no shares issued     —       —  
    Class A common stock, $.01 par value; authorized shares—35,000; 3,272 shares issued and 1,574 shares outstanding at April 30, 2025 and July 31, 2024     33       33  
    Class B common stock, $.01 par value; authorized shares—200,000; 28,528 and 28,177 shares issued and 23,656 and 23,684 shares outstanding at April 30, 2025 and July 31, 2024, respectively     285       282  
    Additional paid-in capital     307,757       303,510  
    Treasury stock, at cost, consisting of 1,698 and 1,698 shares of Class A common stock and 4,872 and 4,493 shares of Class B common stock at April 30, 2025 and July 31, 2024, respectively     (143,853 )     (126,080 )
    Accumulated other comprehensive loss     (19,812 )     (18,142 )
    Retained earnings     141,753       86,580  
    Total IDT Corporation stockholders’ equity     286,163       246,183  
    Noncontrolling interests     13,331       9,472  
    Total equity     299,494       255,655  
    Total liabilities, redeemable noncontrolling interest, and equity   $ 600,908     $ 550,095  


    IDT CORPORATION
    CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)

        Three Months Ended
    April 30,    		     Nine Months Ended
    April 30,    		  
        2025     2024     2025     2024  
        (in thousands, except per share data)  
           
    Revenues   $ 301,985     $ 299,643     $ 914,901     $ 896,946  
    Direct cost of revenues     190,023       202,599       583,201       608,982  
    Gross profit     111,962       97,044       331,700       287,964  
    Operating expenses:                                
    Selling, general and administrative (i)     72,267       68,962       214,039       200,685  
    Technology and development (i)     12,744       12,640       38,115       37,975  
    Severance     190       779       600       1,648  
    Other operating expense, net     175       3,231       403       3,041  
    Total operating expenses     85,376       85,612       253,157       243,349  
    Income from operations     26,586       11,432       78,543       44,615  
    Interest income, net     1,566       1,162       4,347       3,201  
    Other income (expense), net     2,608       (3,273 )     2,533       (6,326 )
    Income before income taxes     30,760       9,321       85,423       41,490  
    Provision for income taxes     (7,798 )     (2,979 )     (21,766 )     (10,918 )
    Net income     22,962       6,342       63,657       30,572  
    Net income attributable to noncontrolling interests     (1,270 )     (791 )     (4,448 )     (2,937 )
    Net income attributable to IDT Corporation   $ 21,692     $ 5,551     $ 59,209     $ 27,635  
    Earnings per share attributable to IDT Corporation common stockholders:                                
    Basic   $ 0.86     $ 0.22     $ 2.35     $ 1.10  
    Diluted   $ 0.86     $ 0.22     $ 2.34     $ 1.09  
    Weighted-average number of shares used in calculation of earnings per share:                                
    Basic     25,165       25,345       25,177       25,233  
    Diluted     25,249       25,516       25,312       25,380  
                                     
    (i) Stock-based compensation included in total operating expenses   $ 946     $ 2,118     $ 2,720     $ 5,375  

      
    IDT CORPORATION
    CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

        Nine Months Ended
    April 30,    		  
        2025     2024  
        (in thousands)  
    Operating activities                
    Net income   $ 63,657     $ 30,572  
    Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization     15,702       15,256  
    Deferred income taxes     18,902       8,830  
    Provision for credit losses, doubtful accounts receivable, and reserve for settlement assets     4,465       3,010  
    Stock-based compensation     2,720       5,375  
    Other     1,735       4,065  
    Change in assets and liabilities:                
    Trade accounts receivable     (4,649 )     (9,000 )
    Settlement assets, disbursement prefunding, prepaid expenses, other current assets, and other assets     (8,932 )     6,797  
    Trade accounts payable, accrued expenses, settlement liabilities, other current liabilities, and other liabilities     (19,486 )     (10,467 )
    Customer funds deposits     25,327       1,243  
    Deferred revenue     (3,382 )     (2,903 )
    Net cash provided by operating activities     96,059       52,778  
    Investing activities                
    Capital expenditures     (15,507 )     (13,621 )
    Purchase of convertible preferred stock in equity method investment     (926 )     (1,513 )
    Purchases of debt securities and equity investments     (29,083 )     (27,593 )
    Proceeds from maturities and sales of debt securities and redemptions of equity investments     35,005       41,527  
    Net cash used in investing activities     (10,511 )     (1,200 )
    Financing activities                
    Dividends paid     (4,036 )     (1,269 )
    Distributions to noncontrolling interests     (100 )     (62 )
    Proceeds from borrowings under revolving credit facility     24,551       32,864  
    Repayment of borrowings under revolving credit facility.     (24,551 )     (32,864 )
    Purchase of restricted shares of net2phone common stock     —       (3,558 )
    Proceeds from exercise of stock options     —       172  
    Repurchases of Class B common stock     (17,773 )     (7,207 )
    Net cash used in financing activities     (21,909 )     (11,924 )
    Effect of exchange rate changes on cash, cash equivalents, and restricted cash and cash equivalents     3,982       (5,632 )
    Net increase in cash, cash equivalents, and restricted cash and cash equivalents     67,621       34,022  
    Cash, cash equivalents, and restricted cash and cash equivalents at beginning of period     255,456       198,823  
    Cash, cash equivalents, and restricted cash and cash equivalents at end of period   $ 323,077     $ 232,845  
                     
    Supplemental schedule of non-cash financing activities                
    Shares of the Company’s Class B common stock issued to executive officers for bonus payments   $ 1,824     $ 1,495  
    Value of the Company’s Class B common stock exchanged for National Retail Solutions shares   $ 442     $ 6,254  
    Shares of the Company’s Class B common stock issued for business acquisition   $ —     $ 100  


    Reconciliation of Non-GAAP Financial Measures for the Third Quarter Fiscal 2025 and 2024

    In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States of America (GAAP), IDT also disclosed (a) Adjusted EBITDA for 3Q25, 2Q25, and 3Q24, (b) non-GAAP earnings per diluted share (Non-GAAP EPS) for 3Q25 and 3Q24, and (c) NRS’ and Fintech segment’s ‘Rule of 40’ score for 3Q25. These are non-GAAP financial measures intended to provide useful information that supplements IDT’s or the relevant segment’s results in accordance with GAAP. The following explains these terms and their respective reconciliations to the most directly comparable GAAP measures.

    Generally, a non-GAAP measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP.

    IDT’s measure of Non-GAAP EPS is calculated by dividing non-GAAP net income by the diluted weighted-average shares. IDT’s measure of non-GAAP net income starts with net income attributable to IDT in accordance with GAAP and adds severance expense, stock-based compensation, and other operating expenses, and deducts other operating gains. These additions and subtractions are non-cash and/or non-routine items in the relevant fiscal 2025 and fiscal 2024 periods.

    Management believes that IDT’s Adjusted EBITDA and Non-GAAP EPS are measures which provide useful information to both management and investors by excluding certain expenses and non-routine gains and losses that may not be indicative of IDT’s or the relevant segment’s core operating results. Management uses Adjusted EBITDA, among other measures, as a relevant indicator of core operational strengths in its financial and operational decision making. In addition, management uses Adjusted EBITDA and Non-GAAP EPS to evaluate operating performance in relation to IDT’s competitors. Disclosure of these financial measures may be useful to investors in evaluating performance and allow for greater transparency of the underlying supplemental information used by management in its financial and operational decision-making. In addition, IDT has historically reported similar financial measures and believes such measures are commonly used by readers of financial information in assessing performance, therefore the inclusion of comparative numbers provides consistency in financial reporting.

    Management refers to Adjusted EBITDA, as well as the GAAP measures income (loss) from operations and net income, on a segment and/or consolidated level to facilitate internal and external comparisons to the segments’ and IDT’s historical operating results, in making operating decisions, for budget and planning purposes, and to form the basis upon which management is compensated.

    While depreciation and amortization are considered operating costs under GAAP, these expenses primarily represent the non-cash current period allocation of costs associated with long-lived assets acquired or capitalized in prior periods. IDT’s Adjusted EBITDA, which is exclusive of depreciation and amortization, is a useful indicator of its current performance.

    Severance expense is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Severance expense is reflective of decisions made by management in each period regarding the aspects of IDT’s and its segments’ businesses to be focused on in light of changing market realities and other factors. While there may be similar charges in other periods, the nature and magnitude of these charges can fluctuate markedly and do not reflect the performance of IDT’s core and continuing operations.

    Other operating expense, net, which is a component of income (loss) from operations, is excluded from the calculation of Adjusted EBITDA and Non-GAAP EPS. Other operating expense, net in 3Q25, 2Q25, and 3Q24 primarily includes legal fees related to Straight Path Communications Inc.’s stockholders’ class action and equipment write-offs. From time-to-time, IDT may have gains or incur costs related to non-routine legal, tax, and other matters, however, these various items generally do not occur each quarter. IDT believes the gain and losses from these non-routine matters are not components of IDT’s or the relevant segment’s core operating results.

    Stock-based compensation recognized by IDT and other companies may not be comparable because of the variety of types of awards as well as the various valuation methodologies and subjective assumptions that are permitted under GAAP. Stock-based compensation is excluded from IDT’s calculation of Non-GAAP EPS because management believes this allows investors to make more meaningful comparisons of the operating results per share of IDT’s core business with the results of other companies. However, stock-based compensation will continue to be a significant expense for IDT for the foreseeable future and an important part of employees’ compensation that impacts their performance.

    Adjusted EBITDA and Non-GAAP EPS should be considered in addition to, not as a substitute for, or superior to, income (loss) from operations, cash flow from operating activities, net income, basic and diluted earnings per share or other measures of liquidity and financial performance prepared in accordance with GAAP. In addition, IDT’s measurements of Adjusted EBITDA and Non-GAAP EPS may not be comparable to similarly titled measures reported by other companies.

    The ‘Rule of 40’ score is a metric used to evaluate the performance of SaaS providers. It postulates that a SaaS provider’s revenue growth rate plus its EBITDA margin should equal or exceed 40 percent. The ‘Rule of 40’ is typically used to assess a company’s balance between growth and profitability. A total of over 40 is thought to indicate a healthy combination of expansion and financial stability, making it a useful tool for management and investors to gauge the potential for long-term success and make informed decisions about resource allocation and business strategy.

    NRS’ ‘Rule of 40’ score is computed by adding (a) the growth rate of NRS’ recurring revenue for the relevant period compared to the corresponding year ago period to (b) NRS’ Adjusted EBITDA margin for the twelve month period through the end of the current period. NRS’ recurring revenue is calculated by subtracting NRS’ revenue from POS terminal sales from its total GAAP revenue. Adjusted EBITDA is a non-GAAP measure as discussed above. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by GAAP revenue for the relevant period.

    Following are reconciliations of Adjusted EBITDA and Non-GAAP EPS to the most directly comparable GAAP measure, which are, (a) for Adjusted EBITDA, (i) income (loss) from operations for IDT’s reportable segments and (ii) net income for IDT on a consolidated basis, and (b) for Non-GAAP EPS, diluted earnings per share. Also following is NRS’ ‘Rule of 40’ score computation including the reconciliation of NRS’ Adjusted EBITDA to the most directly comparable GAAP measure, NRS’ income from operations.

    IDT Corporation
    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended April 30, 2025
    (3Q25)    		                                    
    Net income attributable to IDT Corporation   $ 21.7                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.3                                          
    Net income     23.0                                          
    Provision for income taxes     7.8                                          
    Income before income taxes     30.8                                          
    Interest income, net     (1.6 )                                        
    Other income, net     (2.6 )                                        
    Income (loss) from operations     26.6     $ 17.3     $ 1.4     $ 6.2     $ 4.3     $ (2.6 )
    Depreciation and amortization     5.2       1.9       1.6       1.0       0.7       –  
    Other operating expense, net     0.2       –       0.2       –       –       –  
    Severance expense     0.2       0.2       –       –       –       –  
    Adjusted EBITDA   $ 32.2     $ 19.3     $ 3.2     $ 7.2     $ 5.0     $ (2.6 )
        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended January 31, 2025
    (2Q25)    		                                    
    Net income attributable to IDT Corporation   $ 20.3                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     1.9                                          
    Net income     22.2                                          
    Provision for income taxes     7.7                                          
    Income before income taxes     29.9                                          
    Interest income, net     (1.4 )                                        
    Other income, net     (0.2 )                                        
    Income (loss) from operations     28.3     $ 18.1     $ 1.1     $ 9.1     $ 3.1     $ (3.1 )
    Depreciation and amortization     5.2       1.9       1.6       1.0       0.8       –  
    Other operating expense, net     0.2       –       0.2       –       –       –  
    Severance expense     0.2       0.2       –       –       –       –  
    Adjusted EBITDA   $ 34.0     $ 20.2     $ 2.9     $ 10.1     $ 3.9     $ (3.1 )


    IDT Corporation
    Reconciliation of Net Income to Adjusted EBITDA
    (unaudited) in millions. Figures may not foot or cross-foot due to rounding to millions

        Total IDT Corporation     Traditional Communica-tions     net2phone     NRS     Fintech     Corporate  
    Three Months Ended April 30, 2024
    (3Q24)    		                                    
    Net income attributable to IDT Corporation   $ 5.6                                          
    Adjustments:                                                
    Net income attributable to noncontrolling interests     0.8                                          
    Net income     6.3                                          
    Provision for income taxes     3.0                                          
    Income before income taxes     9.3                                          
    Interest income, net     (1.2 )                                        
    Other expense, net     3.3                                          
    Income (loss) from operations     11.4     $ 12.5     $ 0.5     $ 4.8     $ (0.6 )   $ (5.7 )
    Depreciation and amortization     5.1       2.0       1.6       0.8       0.7       –  
    Severance expense     0.8       0.4       0.1       –       –       0.3  
    Other operating expense, net     3.2       –       –       –       0.1       3.2  
    Adjusted EBITDA   $ 20.6     $ 14.9     $ 2.1     $ 5.6     $ 0.2     $ (2.3 )


    IDT Corporation
    Reconciliation of Earnings per share to Non-GAAP EPS
    (unaudited) in millions, except per share data. Figures may not foot due to rounding to millions.

        3Q25     3Q24  
                     
    Net income attributable to IDT Corporation   $ 21.7     $ 5.6  
    Adjustments (add) subtract:                
    Stock-based compensation     (0.9 )     (2.1 )
    Severance expense     (0.2 )     (0.8 )
    Other operating expense, net     (0.2 )     (3.2 )
    Total adjustments     (1.3 )     (6.1 )
    Income tax effect of total adjustments     (0.3 )     (2.0 )
          1.0       4.1  
    Non-GAAP net income   $ 22.7     $ 9.7  
                     
    Earnings per share:                
    Basic   $ 0.86     $ 0.22  
    Total adjustments     0.04       0.16  
    Non-GAAP – basic   $ 0.90     $ 0.38  
                     
    Weighted-average number of shares used in calculation of basic earnings per share     25.2       25.3  
                     
    Diluted   $ 0.86     $ 0.22  
    Total adjustments     0.04       0.16  
    Non-GAAP – diluted   $ 0.90     $ 0.38  
                     
    Weighted-average number of shares used in calculation of diluted earnings per share     25.2       25.5  


    IDT Corporation
    NRS’ ‘Rule of 40’ Score
    For 3Q25
    (unaudited) in millions. Figures may not foot due to rounding to millions.

        4Q24     1Q25     2Q25     3Q25     Trailing Twelve Months (TTM)
    3Q25    		  
                                             
    Reconciliation of NRS’ Income from Operations to Adjusted EBITDA                                        
                                             
    Income from operations   $ 6.0     $ 6.6     $ 9.1     $ 6.2     $ 28.0  
    Depreciation and amortization     0.9       1.0       1.0       1.0       3.9  
    Other operating expense, net     0.2       –       –       –       0.2  
    Adjusted EBITDA   $ 7.1     $ 7.6     $ 10.1     $ 7.2     $ 32.0  
        3Q25     3Q24  
                     
    NRS’ ‘Rule of 40’ Score                
                     
    NRS recurring revenue   $ 29.4     $ 24.0  
    NRS other revenue     1.7       1.8  
    NRS total revenue   $ 31.1     $ 25.7  
                     
    NRS recurring revenue growth rate     23 %        
                     
    NRS TTM Adjusted EBITDA from above   $ 32.0          
    NRS TTM total revenue     122.7          
    NRS TTM Adjusted EBITDA margin     26 %        
                     
    Rule of 40     49 %        


    Explanation of Key Performance Metrics

    net2phone’s subscription revenue is calculated by subtracting net2phone’s equipment revenue and revenue generated by a legacy SIP trunking offering in Brazil from its revenue in accordance with GAAP. net2phone’s cloud communications and contact center offerings are priced on a per-seat basis, with customers paying based on the number of users in their organization. The number of seats served and subscription revenue trends and comparisons between periods are used in the analysis of net2phone’s revenues and direct cost of revenues and are strong indications of the top-line growth and performance of the business.

    Constant currency as it relates to revenue provides a framework for assessing net2phone’s performance that excludes the effect of foreign currency rate fluctuations. To determine net2phone’s subscription revenue growth on a constant currency basis, current period revenues from entities reporting in currencies other than U.S. Dollars (USD) were converted to USD at the average monthly exchange rates in effect during the prior fiscal year’s comparative period instead of the average monthly exchange rates in effect during the current period.

    net2phone’s operating margin is calculated by dividing GAAP income from operations by GAAP revenue for the period indicated. Operating margin measures the percentage that each dollar of revenue contributes to profitability. Operating margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future income from operations levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    net2phone’s Adjusted EBITDA margin is calculated by dividing net2phone’s Adjusted EBITDA, a Non-GAAP measure, by net2phone’s GAAP revenue for the comparable quarter or period. Adjusted EBITDA margin measures the percentage that each dollar of revenue contributes to profitability before interest, taxes, depreciation and amortization, and other adjustments as described in the Reconciliation of Non-GAAP Financial Measures. net2phone’s Adjusted EBITDA margin is useful for evaluating current period profitability relative to sales, for comparisons to prior period performance, for forecasting future Adjusted EBITDA levels based on projected levels of sales, and for comparing net2phone’s relative profitability to its competitors and peers.

    NRS’ Monthly Average Recurring Revenue per Terminal is calculated by dividing NRS’ recurring revenue as defined above by the average number of active POS terminals during the period. The average number of active POS terminals is calculated by adding the beginning and ending number of active POS terminals during the period and dividing by two. NRS’ recurring revenue divided by the average number of active POS terminals is divided by three when the period is a fiscal quarter. Recurring revenue and Monthly Average Recurring Revenue per Terminal are useful for comparisons of NRS’ revenue and revenue per customer to prior periods and to competitors and others in the market, as well as for forecasting future revenue from the customer base.

    BOSS Money transactions are a nonfinancial metric that measures customer usage during a reporting period. BOSS Money’s digital send volume is the aggregate amount of principal remitted by BOSS Money’s digital customers – those using the BOSS Money and BOSS Revolutions apps to originate remittances. Digital send volume is a key metric for evaluating the operational performance of the digital channel of the remittance business, and for comparing the performance of BOSS Money’s digital channel to competitors in the remittance business as well as to performance to other temporal periods.

    # # #  

    The MIL Network –

  • MIL-OSI USA: Durbin Delivers Opening Statement During Senate Judiciary Committee Executive Business Meeting

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    June 05, 2025

    During his remarks, Durbin condemned the systematic gutting of the Department of Justice under AG Bondi

    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, delivered an opening statement during today’s Senate Judiciary Committee executive business meeting. Durbin’s opening statement outlined the Trump Administration’s systematic gutting of Department of Justice (DOJ) and FBI anti-corruption efforts, gutting of independent ethics review at DOJ, Attorney General Bondi’s conflicts of interest, and more.

    Key Quotes:

    “Under the Trump Administration, the Department of Justice is systematically removing the structure charged with fighting corruption in our government… In one of her first official acts, Attorney General Bondi disbanded the FBI’s Foreign Influence Task Force and restricted enforcement of the Foreign Agents Registration Act, despite the growing threat of foreign influence campaigns by hostile nations. Unfortunately, this was no surprise since the Attorney General herself was formerly a paid foreign agent of the government of Qatar. As a former head of FBI counterintelligence put it, this has created a ‘free for all for foreign intelligence services seeking influence on our government.’”

    “In another shocking move, President Trump ordered a halt to the enforcement of the Foreign Corrupt Practices Act. This landmark law prohibits companies from bribing foreign officials… After endless, baseless accusations that the Biden Administration weaponized DOJ, it is the Trump Administration that is making it easier to target its enemies, stifle dissent, and seek retribution.”

    “The Trump Administration also removed the senior career ethics official at DOJ who advised on conflicts of interest and other ethical issues—and put these duties in the hands of two inexperienced political appointees who are personally beholden to the Attorney General.”

    “In the absence of these internal guardrails, it’s not surprising that we’re witnessing outrageous misconduct. Attorney General Bondi did not recuse herself from President Trump’s solicitation of a free jet from the royal family of Qatar, despite the fact that AG Bondi was a registered foreign agent for [Qatar].”

    “Attorney General Bondi also appears to be reaping the financial rewards of her loyalty to the President. She has been deeply financially entangled with President Trump for years. Most notably, she earned at least $3 million on the merger that formed Trump Media and has held millions of dollars in Trump Media stock. She sold that stock under suspicious circumstances on a historic day—April 2, 2025. This was the same day President Trump announced his hairbrained tariff scheme that crashed the stock market and destroyed $10 trillion in wealth in three days… The share price of Trump Media plummeted 15 percent, yet Bondi appears to have avoided substantial financial loss.”

    “The Justice Department is involved in other activities that bear notice today. During his controversial and disgraceful tenure as Interim U.S. Attorney for the District of Columbia, Ed Martin fired numerous career prosecutors simply because they were assigned to work on January 6 cases. Mr. Martin was rewarded with a plum position at the Justice Department as the very first political appointee to serve as pardon attorney. During his short time in this role, Martin has overseen pardons of numerous Trump donors and supporters.”

    “In light of these concerns, we have a responsibility to call Attorney General Bondi under oath soon. So, I ask again, I hope we have that oversight hearing in the soon in the future.”

    Durbin also spoke in support of David Waterman, nominated to be the U.S. Attorney for the Southern District of Iowa. President Biden nominated Mr. Waterman last February and the Senate Judiciary Committee reported his nomination last April. Mr. Waterman became a victim of then-Senator Vance’s effort to block all U.S. Attorney nominees during under the Biden Administration. 

    Video of Durbin’s opening statement is available here.

    Audio of Durbin’s opening statement is available here.

    Footage of Durbin’s opening statement is available here for TV Stations.

    -30-

    MIL OSI USA News –

  • MIL-OSI Security: Six People Indicted for COVID-19 Relief Fraud Scheme Totaling Over $34 Million

    Source: Office of United States Attorneys

    MIAMI – Elaine A. Escoe, 40; Alfred L. Davis, 51; Gino J. Jourdan, 37; Cher L. Davis, 53; Latoya T. Clark, 39; and James G. McGhow, 69, have been indicted with conspiracy, wire fraud, and money laundering in connection with a scheme to fraudulently obtain over $34 million in federal COVID-19 relief funds.

    According to allegations in the indictment, from May 2020 through November 2021, the defendants conspired to submit more than 90 false and fraudulent applications for funds under the Paycheck Protection Program (PPP), Economic Injury Disaster Loans (EIDL), Restaurant Revitalization Fund (RRF), and Shuttered Venue Operators Grant (SVOG). The applications allegedly contained materially false representations regarding employee counts, payroll expenses, and business revenues. In support of the applications, the defendants are alleged to have submitted falsified IRS tax documents and fabricated bank statements.

    The indictment alleges that the scheme resulted in the wrongful disbursement of approximately $29.1 million in PPP funds, $1.2 million in RRF funds, and $3.8 million in SVOG funds. After the funds were disbursed, the defendants allegedly directed payments to each other and to businesses they controlled, withdrew large sums in cash, and used blank, signed checks to conceal the origin and nature of the proceeds.

    Each of the six defendants is charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Each defendant also faces multiple substantive counts of wire fraud and engaging in monetary transactions involving criminally derived property. If convicted, the defendants face up to 20 years in prison on each wire fraud charge and up to 10 years in prison on each money laundering charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida; Acting Special Agent in Charge Brett Skiles of FBI Miami and Acting Special Agent in Charge José R. Figueroa of Homeland Security Investigations (HSI) Miami, made the announcement.

    FBI Miami’s West Palm Beach Resident Agency investigated the case.  HSI Miami assisted in the investigation.  Assistant United States Attorney Jonathan Bailyn is prosecuting the case.  Legal Administrative Specialist Matthew Neff is helping with litigation technology.

    An indictment is a mere allegation.  A defendant is presumed innocent until found guilty beyond a reasonable doubt in a court of law.

    You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.

    Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 25-cr-80076-AMC.

    ###

    MIL Security OSI –

  • MIL-OSI: “America’s AI Arsenal Just Went Live”: AI Insider Briefs Public on Secret Supercomputer Built by Musk

    Source: GlobeNewswire (MIL-OSI)

    BALTIMORE, June 05, 2025 (GLOBE NEWSWIRE) — A newly surfaced report from bestselling author and tech insider James Altucher outlines the existence of a massive U.S.-based artificial intelligence weapon — one that could redefine America’s global standing in the AI arms race.

    According to Altucher, the project — code-named Project Colossus — is being built by Elon Musk’s company xAI, in coordination with recent policy changes made by the Trump administration. Housed in a low-profile facility in Memphis, Tennessee, Altucher says this machine is already operational — and growing more powerful by the day.

    “The Fastest Supercomputer on the Planet”

    The briefing claims the facility is equipped with 200,000 cutting-edge AI chips, making it the most powerful computing center in the Western Hemisphere.

    “It contains not just one or two… but 200,000 units of Nvidia’s all-powerful AI chips… making it the most advanced AI facility known to man.”

    “The fastest supercomputer on the planet.” — Jensen Huang, Nvidia CEO

    Altucher notes that Musk plans to expand this further in the coming weeks, with rumors of additional hardware that could multiply its power tenfold.

    Trump Cleared the Runway

    The report links the timing of Project Colossus to a major political shift. On Day 1 of his second term, Donald Trump reversed Biden-era restrictions on AI development.

    “In one of his FIRST acts as President… Donald Trump overturned Executive Order #14110.”

    Altucher claims this decision allowed developers like Musk to operate “without red tape or delay” — accelerating America’s path toward dominance in the next generation of AI systems.

    Altucher: This Is “Artificial Superintelligence”

    Altucher describes this moment not as another software release — but a seismic shift in how technology operates.

    “This second wave of ARTIFICIAL SUPERINTELLIGENCE… Will rival all of the great innovations of the past. Electricity… the wheel… even the discovery of fire.”

    His report urges Americans to understand what’s unfolding — not just in Silicon Valley, but in unmarked warehouses like the one now powering Project Colossus.

    About James Altucher

    James Altucher is a computer scientist, entrepreneur, and author who has worked on AI projects for over 40 years. A former IBM consultant and Wall Street technologist, he now focuses on breaking down emerging tech developments for a general audience. His latest briefing examines how Artificial Superintelligence is reshaping U.S. strategy and infrastructure.

    Media Contact:
    Derek Warren
    Public Relations Manager
    Paradigm Press Group
    Email: dwarren@paradigmpressgroup.com

    The MIL Network –

  • MIL-OSI Security: Charleston Woman Pleads Guilty to Role in COVID-19 Fraud Conspiracy

    Source: US FBI

    CHARLESTON, W.Va. – Damisha Brown, 32, of Charleston, pleaded guilty today to conspiracy to commit bank fraud. Brown received $15,625 in proceeds from a criminally derived Paycheck Protection Plan (PPP) loan, guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

    According to court documents and statements made in court, co-defendant Kisha Sutton conspired with Brown and others to obtain fraudulent PPP loans. Sutton submitted a PPP loan application on Brown’s behalf on April 25, 2021. The application listed Brown as a sole proprietor hair dresser who received $75,000 in gross income in 2020. The application was filed with an Internal Revenue Service (IRS) Form 1040, Schedule C Profit or Loss from Business, stating that the applicant had earned $75,000 in 2020. As part of her guilty pleas, Brown admitted that she never earned $75,000 as a hair dresser in one year and that the IRS Form 1040 submitted with her application was fraudulent and created solely to obtain the PPP loan.

    A PPP lender in California approved Brown’s loan application. The $15,625 in loan proceeds was deposited in Brown’s personal bank account on April 30, 2021. Brown admitted that she knew the $15,625 represented proceeds from the fraudulent PPP loan. Between April 30 and May 27, 2021, Sutton received $3,500 from Brown as her share of the fraudulent PPP loan proceeds. Brown transferred the money to Sutton using a digital wallet application. Brown admitted that she transferred the $3,500 as Sutton’s compensation for facilitating the submission of her fraudulent loan, in keeping with their agreement. Brown further admitted that she spent the remainder of the loan proceeds on ineligible personal expenses.

    The CARES Act made forgivable PPP loans available to qualifying sole proprietors, independent contractors and self-employed individuals adversely impacted by the COVID-19 pandemic, to replace their normal income and for certain other eligible expenses. Applicants were required to certify that they were in operation on February 15, 2020, and provide documentation showing their prior gross income from either 2019 or 2020.

    Brown is scheduled to be sentenced on October 2, 2025, and faces a maximum penalty of 30 years in prison, up to five years of supervised release, and a $1 million fine. Brown also owes $12,125 in restitution.

    Brown and Sutton, 44, of Jersey City, New Jersey, are among seven individuals indicted by a federal grand jury on charges alleging they and others conspired, as well as aided and abetted one another, to obtain fraudulent PPP loans totaling $140,625. On March 25, 2025, co-defendant William Powell pleaded guilty to conspiracy to commit bank fraud and co-defendant Jasmine Spencer pleaded guilty to aiding and abetting bank fraud. Powell, 35, of Huntington, and Spencer, 32, of Charleston,  are scheduled to be sentenced on July 9, 2025. The indictment against Sutton and the other defendants remains pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police – Bureau of Criminal Investigation (BCI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).

    United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Jonathan T. Storage and Jennifer D. Gordon and former Assistant United States Attorney Holly Wilson have prosecuted the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-192.

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  • MIL-OSI Security: Illegal Alien Sentenced for Assaulting Law Enforcement

    Source: US FBI

    McALLEN, Texas – A 21-year-old El Salvadorian national has been sentenced for assaulting a Border Patrol (BP) agent, announced U.S. Attorney Nicholas J. Ganjei.

    Oscar Adilio Sanchez-Rivera pleaded guilty March 4.

    U.S. District Judge Drew B. Tipton has now ordered Sanchez-Rivera to serve 36 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.

    “The defendant here managed to turn a simple removal case to a multi-year federal sentence,” said Ganjei. “Let this case be an example to others who may wish harm on police or federal agents; assaulting law enforcement will not be tolerated.”

    On Nov. 1, 2024, authorities conducted a traffic stop in Rio Grande City when Sanchez-Rivera notified them of his alien status. As the BP agent attempted to place him in a vehicle, Sanchez-Rivera attempted to evade arrest. He punched the agent in the face and grabbed the agent’s finger, causing a fracture that required surgery.

    Sanchez-Rivera fled on foot but was soon apprehended.

    He will remain in custody pending transfer to a Federal Bureau of Prisons facility to be determined in the near future.

    BP and FBI conducted the investigation. Assistant U.S. Attorney Amanda McColgan prosecuted the case.

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  • MIL-OSI Security: Richmond Man Sentenced to Over Three Years in Prison for Child Sexual Abuse Material

    Source: US FBI

    RICHMOND, Va. – A Richmond man was sentenced today to three years and four months in prison for possession of child sexual abuse material (CSAM).

    According to court documents, in November 2020, FBI agents received information from KIK Messenger about username “boredani” sharing videos believed to be CSAM. On Dec. 8, 2021, agents searched the residence of Hasson Julian Roberts, 42. Agents seized several electronic devices belonging to Roberts, including an external hard drive. A forensic examination of the external hard drive revealed that it contained over 100 CSAM files, including a video file depicting a prepubescent minor engaged in various sexual acts.

    Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by Senior U.S. District Judge Robert E. Payne.

    Assistant U.S. Attorney Heather H. Mansfield prosecuted the case.

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

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-137.

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  • MIL-OSI Security: Former Maryland State Trooper Sentenced to Federal Prison for Bribery and Drug Crimes

    Source: Office of United States Attorneys

    Baltimore, Maryland – Today, U.S. District Judge Stephanie A. Gallagher sentenced Justin Riggs, 35, of Smithsburg, Maryland, to six years in federal prison, followed by three years of supervised release, for Conspiracy to Distribute and Conspiracy to Possess with the Intent to Distribute Controlled Dangerous Substances, Use of a Communication Facility in Causing or Facilitating the Conspiracy to Distribute Controlled Dangerous Substances, and Travel Act-State of Maryland Bribery.   

    Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Acting Special Agent in Charge Amanda M. Koldjeski, Federal Bureau of Investigation (FBI) – Baltimore Field Office.

    According to his guilty plea, in December 2022, Riggs — who was serving as a Maryland State Trooper — was assigned to a group within the Maryland State Police (MSP) investigating drug and gun trafficking in Western Maryland.  The MSP group used at least one confidential human source during the investigation.  On December 19, Riggs created a fictitious Facebook account to contact a drug-distributor target.  While corresponding with the drug distributor, Riggs informed the drug distributor that he worked “for a fed agency.”  Riggs also told the drug distributor that he had “tons more info pertaining to your biggest informant.”  The former Maryland state trooper initiated several electronic conversations with the drug distributor between 2022 and 2023, attempting to sell the informant’s identity.

    On December 21, Riggs stated among other things:

    “Theres a big case man. I’m not reaching out because I care what you’re in to or not in to. you don’t have to play innocent to me. IDC about that. I’m just trying to get paid. But there’s a big case that’s going on. Im here to work with you. I gave you some free info to prove my worth. Once you find the tracker and see I’m legit then let’s talk about the other info I have.”

    “That’s why I need money for the info. I know what’ll happen to the rat. You may not have the money but your club does. And this case is going to hurt alot of members. But anyway. Just holler when you want to move forward man.”

    Then on December 22, Riggs continued conversing with the drug distributor. The drug distributor told Riggs that he was no longer going to participate in drug trafficking, to which Riggs responded in part:

    “…So listen, if you’re getting out or want nothing to do with what I can offer, is there anybody trustworthy in your club that would have interest in my services? Info for money exchange type of thing?”

    “I could be willing to give you some more info now for forwarding my services to someone that could use it.”

    On December 26, Riggs asked the drug distributor if he removed the tracker from his truck.  Riggs then offered additional help to the drug distributor.  During the correspondence, Riggs said:

    “Did you pull the tracker off? I can help you by telling you how deep the investigation is. How to make it go away, who your snitch is that’s setting y’all up, and when your phone will be tapped…”

    “Gotchya. Yah it will send an alert once removed. I think they’re going to try to put another one of this week. I can’t communicate with you once the wire tap starts. That’s why I’m going offline tomorrow. But like I said I can help you. By telling you the snitch. Once he’s gone then you’re case should be gone because he won’t be able to testify against you”

    On January 2, 2023, Riggs began negotiating a price with the drug distributor for the information which continued through January 3. During a latter part of the conversation, Riggs stated:

    “If you make the 1500 drop then I’ll just give ya the rest of the info and you can make the 300 drop.”  Then later, “Every buy he’s done hasbeen recorded. The audio conversations have been recorded. But he plans on testifying on ya…”

    Then on January 5, Person 1 picked up the $1,500 on behalf of Riggs at an agreed upon location in Western Maryland. Riggs later confirmed with the drug distributor that he received the money.

    U.S. Attorney Hayes commended the FBI and MSP for their work in the investigation and ATF and HSI for their valuable assistance. Ms. Hayes also thanked Assistant U.S. Attorney Sean R. Delaney who prosecuted the case.

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

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  • MIL-OSI USA: AG Labrador Warns Idahoans of Fake DMV Text Scam

    Source: US State of Idaho

    Home Newsroom AG Labrador Warns Idahoans of Fake DMV Text Scam

    BOISE — Attorney General Raúl Labrador issued a warning today about text scams targeting Idaho residents with fake DMV notices claiming unpaid traffic tickets will result in license suspension or legal penalties.
    “Scammers stole over $63 million from Idahoans last year, predominantly targeting our seniors,” said Attorney General Labrador. “These scammers are now using fake DMV texts to steal even more. Idaho families need to know that legitimate government agencies never demand payments through text messages.”
    The fraudulent texts claim to be from the Idaho DMV and threaten immediate license suspension unless payment is made through suspicious links. Law enforcement agencies across Idaho confirm they never send text messages demanding payments or threatening penalties for unpaid violations, tolls, or missed jury duty.
    Idahoans should watch for red flags including urgent payment demands, threats of arrest or license suspension, suspicious website links designed to look official, and requests for payment through gift cards. According to the 2024 FBI Internet Crime Report, seniors were disproportionately targeted by these schemes nationwide. The report also found that Idaho residents filed 3,081 complaints, resulting in $63,035,342 in total losses from cyber-enabled crimes and fraud.
    Idahoans who receive suspicious texts should report them to the Federal Trade Commission and delete the message without clicking any links or providing personal information.

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  • MIL-OSI Security: Florida Man Sentenced to 22 Months’ Imprisonment for Conspiracy to Pay and Receive Healthcare Kickbacks

    Source: US FBI

    Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on May 29, 2025, U.S. District Judge Joseph P. Stadtmueller sentenced Michael G.V. Comino to 22 months’ imprisonment for conspiracy to pay and receive healthcare kickbacks in violation of the Anti-Kickback Statute. Comino was also ordered to pay over $2 million in restitution to Medicare.

    According to court records, Comino and his co-defendant owned Kestrel Medical LLC, a company that supplied durable medical equipment, such as orthotic devices, including braces for ankles, knees, backs, and shoulders. Beginning in August 2019, Comino began providing “leads” or signed doctors’ orders to Kestrel in exchange for kickback payments to two companies he owned. Comino became a fifty percent owner of Kestrel in approximately February 2020, after which he continued to offer and pay kickbacks for signed doctors’ orders. Comino and his co-defendant concealed the nature of the kickback payments by paying invoices for marketing hours. As a result of the conspiracy, Medicare paid over $2 million to Kestrel. Comino personally received hundreds of thousands of dollars from Kestrel in 2019 and 2020.

    “The United States Attorney Office prioritizes efforts to stop healthcare fraud and will continue to hold accountable individuals who intentionally misuse Medicare and Medicaid dollars,” said Acting U.S. Attorney Frohling. “The restitution order and prison sentence in this case underscore that providers of medical equipment and supplies cannot engage in unlawful schemes that put their interests ahead of those of the American taxpayer.”   

    “Individuals like Mr. Comino must face the consequences of their actions that defrauded the American people and wasted taxpayer money. This case sends a clear message that healthcare kickback schemes won’t be tolerated,” said FBI Milwaukee Special Agent in Charge Michael Hensle. “The FBI will continue to work vigorously with our partners to combat and prevent healthcare fraud.”

    “The conduct in this investigation highlights a scheme whereby the defendant prioritized profits over patient care, in violation of the Anti-Kickback Statute.” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working together with our law enforcement partners, HHS-OIG will continue to protect the integrity of federal health care programs.”

    The FBI and HHS-OIG investigated the case, which Assistant U.S. Attorney John Scully prosecuted.

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    For further information contact:

    Public Information Officer

    Kenneth.Gales@usdoj.gov

    (414) 297-1700

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