NewzIntel.com

Category: Justice

  • MIL-OSI New Zealand: Budget 2025 – Growing the economy to help Kiwis get ahead

    Source: NZ Music Month takes to the streets

    Budget 2025 is about growing the economy to create jobs and help Kiwis get ahead, Prime Minister Christopher Luxon says.
    “The Government’s economic plan is working. By stopping wasteful spending, inflation is down from 7.3 per cent to 2.5 per cent and mortgage interest rates are falling.
    “Treasury’s latest forecasts show economic growth averaging 2.7 per cent per year, 240,000 new jobs created, and wages growing faster than inflation every year. This is on top of the real average wage growing nearly $1100 since the election, and tax relief in Budget 2024.
    “But we cannot take an economic recovery for granted. It requires careful management. That’s why Budget 2025 is firmly focused on growing the economy to help Kiwis get ahead.
    “Investment Boost will allow hard working tradies, farmers, and small business owners to immediately deduct 20 per cent of the cost of new machinery, tools and equipment from their taxable income – encouraging investment in assets that increase productivity and help lift wages.
    “Other growth initiatives include lifting KiwiSaver balances with higher employer and employee contributions, investment in new infrastructure such as roads, schools and hospitals, growing tourism, attracting foreign investment, and new support for start-up tech businesses.
    “Targeted support for Kiwis dealing with the cost of living is another focus, including increasing Working for Families for 142,000 families, rates rebates for up to 66,000 SuperGold Card holders, and extending prescriptions to 12 months, meaning less time and money spent visiting the doctor.
    “The Budget also sees significant investment in frontline services, including more support for children with additional learning needs, more maths teachers, $1 billion for hospital upgrades, increased access to urgent medical care, and more support for Police.
    “Just like Kiwi households, we’ve had to make tough choices about what we spend money on. We are confident we have put Kiwis hard-earned taxes where they will have the most impact.
    “This Budget is focused on economic growth to help Kiwis get ahead. It is only through a strong economy that we can create jobs, deal with the cost of living and afford the schools, hospitals, and Police Kiwis deserve. This is a responsible Budget that secures New Zealand’s future.”

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Parakao death: Man charged with murder

    Source: New Zealand Police

    A 26-year-old Northland man has been charged with the murder of Geoffrey Ware on May 9.

    Police upgraded an enquiry into the 55-year-old’s death to a homicide investigation on May 12.

    Detective Senior Sergeant Michelle Harris, of Whangārei CIB, says Police are not seeking anyone else in connection with Mr Ware’s death.

    Police are still appealing for information and sightings on May 9 of a man and vehicle in the Parakao area between 8am-6.15pm.

    A photo of a 1999 blue and silver Mitsubishi L200 is being released today.

    “We are also interested in sightings of a man reportedly seen walking along SH14 that afternoon and evening,” Detective Senior Sergeant Harris says.

    “We are encouraging people to report on the portal link set up by the Operation Cossar enquiry team.”

    That portal link is https://cossar.nc3.govt.nz/

    “The enquiry is ongoing and we appreciate all the help we’ve received from members of the public,” Detective Senior Sergeant Harris says. 

    “We’re appealing to anyone who hasn’t come forward to please contact us.”

    The man charged is currently remanded in custody, and will appear in the Whangārei High Court on May 26.

    ENDS

    Nicole Bremner/NZ Police 

    MIL OSI New Zealand News –

  • MIL-OSI: Apollo Capital Issues a With Prejudice Offer to MediPharm Labs and Its Board of Directors to Ensure Shareholder Rights Are Protected at the 2025 Annual Meeting

    Source: GlobeNewswire (MIL-OSI)

    Believes the Board Continues to Take Oppressive Actions Which Fundamentally Disregard the Rights and Interests of Shareholders

    Asserts the Board’s Unlawful, Desperate and Self-Serving Tactics Clearly Indicate That the Current Directors Will Go to Any Lengths Necessary to Entrench Themselves

    Requests that MediPharm Agree to Conduct the June 16th Annual Meeting Under the Oversight of an Independent Chair to Ensure Shareholders Have the Opportunity to Hold the Current Board Accountable and Elect New Leaders

    TORONTO, May 21, 2025 (GLOBE NEWSWIRE) — Apollo Technology Capital Corporation (“Apollo Capital”) which together with its affiliates and associates collectively is one of the largest shareholders of MediPharm Labs Corp. (TSX: LABS) (OTCQB: MEDIF) (FSE: MLZ) (“MediPharm”, “MediPharm Labs”, or the “Company”), owning approximately 3% of the Company’s common stock, today issued a “With Prejudice” offer to MediPharm’s Board of Directors (the “Board”) in order to ensure that the rights of shareholders are protected in connection with the Company’s upcoming 2025 Annual and Special Meeting of Shareholders to be held on June 16, 2025 (the “Annual Meeting”).

    CEO and Chairman Regan McGee of Apollo Capital commented:

    After disastrous Q1 2025 financial results and 22 consecutive quarters of losses, rather than assume accountability for its value-destructive decisions, we believe that the Board continues to take oppressive actions against shareholders, demonstrating that its sole priority is self-preservation and entrenchment.

    All indications point to the Board’s desire to run a corrupt election process to ensure their victory so that they can continue to siphon the remainder of MediPharm’s cash reserves into their own pockets until the Company runs out of money in November.

    What possible objection could they have to an independent chair running the meeting if this was not the case?

    This is why we have taken the step of publicly extending this offer which can be accessed at this LINK.

    While we expect Chairman Chris Taves (Managing Director and Head of Asia for Bank of Montreal, BMO Capital Markets) to continue to obstruct the appointment of an independent chair, Apollo Capital will not be deterred and will continue to do whatever is necessary to ensure that all shareholders have an opportunity to replace the directors whose decisions have completely destroyed shareholder value.

    MediPharm and its Board have consistently acted in a manner that unfairly disregards the rights and interests of shareholders by pursuing a strategy of entrenchment, obfuscation and character assassination of dissenting shareholders, improperly placing their own personal interests ahead of the interests of the Company and its shareholders, including by:

    • Undermining and disenfranchising Apollo Capital and all other MediPharm shareholders from exercising their rights to hold the board accountable for running the Company into the ground;
    • Making groundless public attacks on Apollo Capital, including false allegations of us acting jointly or in concert with other understandably disgruntled shareholders, and fabricating malicious and completely meritless accusations of criminal behaviour like harassment and the utterance of threats;
    • This is nothing less than thug behaviour and a menacing attempt to deter and silence any shareholders from raising their valid concerns in a public forum.

    Apollo Capital urges all of our fellow shareholders to reject the Board’s intimidation tactics, which are evidently geared to silencing anyone who demands change and accountability. It is sad that this is the tactic that the board has resorted to in an attempt shift attention away from their own epic failures and to discourage other shareholders from speaking out.

    It is Apollo Capital’s belief that not accepting this offer would clearly demonstrate that the board of directors of MediPharm’s only priority is self-preservation and entrenchment, improperly placing their own personal interests ahead of the law and the interests of the company and its shareholders.

    What possible objection could they have to a lawful and fair election with an independent Chair if this is not the case?

    All MediPharm stakeholders, including its employees and shareholders, deserve an independent third party running the Annual Meeting to ensure a fair, transparent and lawful process.

    Shareholders can visit www.CureMediPharm.com, to sign up for important campaign updates.

    To access Apollo Capital’s Circular and related proxy materials, including a proxy or voting instruction form, visit SEDAR+ at www.sedarplus.ca.

    Contacts

    For Shareholders:
    Carson Proxy
    North American Toll-Free Phone: 1-800-530-5189
    Local or Text Message: 416-751-2066 (collect calls accepted)
    E: info@carsonproxy.com

    For Media:
    CureMediPharm@gasthalter.com

    Legal Disclosures

    Information in Support of Public Broadcast Exemption under Canadian Law

    In connection with the Annual Meeting, Apollo Capital has filed an amended and restated dissident information circular (the “Circular”) in compliance with applicable corporate and securities laws. Apollo Capital has provided in, or incorporated by reference into, this press release the disclosure required under section 9.2(4) of NI 51-102 – Continuous Disclosure Obligations (“NI 51-102”) and the corresponding exemption under the Business Corporations Act (Ontario), and has filed the Circular, available under MediPharm’s profile on SEDAR+ at www.sedarplus.ca. The Circular contains disclosure prescribed by applicable corporate law and disclosure required under section 9.2(6) of NI 51-102 in respect of Apollo Capital’s director nominees, in accordance with corporate and securities laws applicable to public broadcast solicitations. The Circular is hereby incorporated by reference into this press release and is available under MediPharm’s profile on SEDAR+ at www.sedarplus.ca. The registered office of the Company is 151 John Street, Barrie, Ontario, Canada L4N 2L1.

    SHAREHOLDERS OF MEDIPHARM ARE URGED TO READ THE CIRCULAR CAREFULLY BECAUSE IT CONTAINS IMPORTANT INFORMATION. Investors and shareholders are able to obtain free copies of the Circular and any amendments or supplements thereto and further proxy circulars at no charge under MediPharm’s profile on SEDAR+ at www.sedarplus.ca. In addition, shareholders are also able to obtain free copies of the Circular and other relevant documents by contacting Apollo Capital’s proxy solicitor, Carson Proxy Advisors Ltd. (“Carson Proxy”) at 1-800-530-5189, local (collect outside North America): 416-751-2066 or by email at info@carsonproxy.com.

    Proxies may be revoked in accordance with subsection 110(4) of the Business Corporations Act (Ontario) by a registered shareholder of Company shares: (a) by completing and signing a valid proxy bearing a later date and returning it in accordance with the instructions contained in the accompanying form of proxy; (b) by depositing an instrument in writing executed by the shareholder or by the shareholder’s attorney authorized in writing; (c) by transmitting by telephonic or electronic means a revocation that is signed by electronic signature in accordance with applicable law, as the case may be: (i) at the registered office of the Company at any time up to and including the last business day preceding the day the Annual Meeting or any adjournment or postponement of the Annual Meeting is to be held, or (ii) with the chair of the Annual Meeting on the day of the Annual Meeting or any adjournment or postponement of the Annual Meeting; or (d) in any other manner permitted by law. In addition, proxies may be revoked by a non-registered holder of Company shares at any time by written notice to the intermediary in accordance with the instructions given to the non-registered holder by its intermediary. It should be noted that revocation of proxies or voting instructions by a non-registered holder can take several days or even longer to complete and, accordingly, any such revocation should be completed well in advance of the deadline prescribed in the form of proxy or voting instruction form to ensure it is given effect in respect of the Annual Meeting.

    The costs incurred in the preparation and mailing of any circular or proxy solicitation by Apollo Capital and any other participants named herein will be borne directly and indirectly by Apollo Capital. However, to the extent permitted under applicable law, Apollo Capital intends to seek reimbursement from the Company of all expenses incurred in connection with the solicitation of proxies for the election of its director nominees at the Annual Meeting.

    This press release and any solicitation made by Apollo Capital is, or will be, as applicable, made by such parties, and not by or on behalf of the management of the Company. Proxies may be solicited by proxy circular, mail, telephone, email or other electronic means, as well as by newspaper or other media advertising and in person by managers, directors, officers and employees of Apollo Capital who will not be specifically remunerated therefor. In addition, Apollo Capital may solicit proxies by way of public broadcast, including press release, speech or publication and any other manner permitted under applicable Canadian laws, and may engage the services of one or more agents and authorize other persons to assist it in soliciting proxies on their behalf.

    Apollo Capital has entered into an agreement with Carson Proxy Advisors (“Carson Proxy”) for solicitation and advisory services in connection with the solicitation of proxies for the Meeting, for which Carson Proxy will receive a fee not to exceed $250,000, together with reimbursement for reasonable and out-of-pocket expenses. Apollo Capital has also engaged Gasthalter & Co. LP (“G&Co”) to act as communications consultant to provide Apollo Capital with certain communications, public relations and related services, for which G&Co will receive a minimum fee of US$75,000 in addition to a performance fee of US$250,000 in the event that Apollo Capital’s nominees make up a majority of the Board following the Annual Meeting, plus excess fees, related costs and expenses.

    No member of Apollo Capital nor any of their associates or affiliates has or has had any material interest, direct or indirect, in any transaction since the beginning of the Company’s last completed financial year or in any proposed transaction that has materially affected or will or would materially affect the Company or any of the Company’s affiliates. No member of Apollo Capital nor any of their associates or affiliates has any material interest, direct or indirect, by way of beneficial ownership of securities or otherwise, in any matter to be acted upon at the Annual Meeting, other than setting the number of directors, the election of directors, the appointment of auditors and the approval of the ordinary resolution approving, among other things, the Company’s amended and restated equity incentive plan dated May 8, 2025 and the unallocated awards available thereunder.

    Cautionary Statement Regarding Forward-Looking Statements

    This press release contains forward‐looking statements. All statements contained in this filing that are not clearly historical in nature or that necessarily depend on future events are forward‐looking, and the words “anticipate,” “believe,” “expect,” “estimate,” “plan,” and similar expressions are generally intended to identify forward‐looking statements. These statements are based on current expectations of Apollo Capital and currently available information. They are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. All forward-looking statements contained herein are made only as of the date hereof and Apollo Capital disclaims any intention or obligation to update or revise any such forward-looking statements to reflect events or circumstances that subsequently occur, or of which Apollo Capital hereafter becomes aware, except as required by applicable law.

    The MIL Network –

  • MIL-OSI USA: Padilla, Schiff Urge Justice Department Watchdog to Open Investigation into DOJ’s Role in Unconstitutional Qatar Airplane Scheme

    US Senate News:

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

    Padilla, Schiff Urge Justice Department Watchdog to Open Investigation into DOJ’s Role in Unconstitutional Qatar Airplane Scheme

    WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) joined Senator Adam Schiff (D-Calif.) and other members of the Senate Judiciary Committee in demanding an independent investigation by the U.S. Department of Justice’s (DOJ) Inspector General into the Attorney General and the Department of Justice’s involvement in President Trump’s unconstitutional acquisition of a $400 million luxury plane from the Qatari government.

    The request for an inquiry cites new reporting that the U.S. government has accepted the plane from Qatar and that President Trump actively solicited the luxury aircraft from Qatar’s government. At Attorney General Pam Bondi’s confirmation hearing, Senator Padilla and his Democratic Judiciary Committee colleagues raised concerns about Bondi’s previous work as a foreign agent for the government of Qatar and how that might influence her work as Attorney General.

    “These reports raise the troubling possibility that the Department, and Attorney General Bondi personally, were integral to this scheme by crafting a legal justification to enable the President to circumvent the Foreign Emoluments Clause of the Constitution, federal bribery and ethics laws, and Congress in order to acquire one of the largest foreign gifts in our history,” wrote the Senators.

    “Given today’s announcement and the fact that the Department’s leadership has effectively politicized the Office of Professional Responsibility (OPR), which, under normal circumstances, would investigate professional misconduct by Department attorneys, it is imperative that your office undertake an independent and comprehensive investigation,” continued the Senators.

    The request to DOJ Inspector General Michael Horowitz was sent by Padilla, Schiff, Judiciary Committee Ranking Member Dick Durbin (D-Ill.), and U.S. Senators Cory Booker (D-N.J.), Richard Blumenthal (D-Conn.), Mazie Hirono (D-Hawai’i), Peter Welch (D-Vt.), and Sheldon Whitehouse (D-R.I.).

    Last week, Senator Padilla joined 26 other Senators in cosponsored a resolution condemning President Trump’s acceptance of a luxury airplane gift, valued at $400 million, from the government of Qatar. According to reports, Trump intends to designate the plane as Air Force One while in office and transfer it to a foundation for personal use following the end of his term.

    Full text of the letter is available here and below:  

    Dear Inspector General Horowitz:

    We write to request that you open an inquiry into the facts and circumstances surrounding the Department of Justice’s involvement in facilitating President Trump’s effort to acquire a luxury airplane from Qatar, including the actions of Attorney General Pam Bondi. The Department of Defense confirmed today that it is accepting the plane as a gift from the government of Qatar. Given today’s announcement and the fact that the Department’s leadership has effectively politicized the Office of Professional Responsibility (OPR), which, under normal circumstances, would investigate professional misconduct by Department attorneys, it is imperative that your office undertake an independent and comprehensive investigation.

    New revelations suggest that President Trump or senior administration officials actively solicited this foreign gift by initiating outreach to Qatar regarding the Boeing 747-8 plane in its possession, and, contrary to claims by President Trump and his associates, by proposing to Qatar that the transfer be in the form of a gift or donation, as opposed to a government-to-government sale. The reporting also raises questions as to whether the administration disclosed to the Qatari government that the Department of Defense would ultimately relinquish the plane and transfer it to President Trump after leaving office, potentially through his presidential library.

    Public reports suggest that Attorney General Bondi played a crucial role in providing cover for such a gift by issuing a legal memorandum to White House Counsel David Warrington that “concluded it would be ‘legally permissible’ for the donation of the aircraft to be conditioned on transferring its ownership to Trump’s presidential library before the end of his term.” Under this scheme, the Department of Defense would serve as a clearinghouse to launder the plane on President Trump’s behalf, while bearing the enormous financial cost to retrofit the aircraft to meet necessary security and counterintelligence standards and requirements for Air Force One.

    These reports raise the troubling possibility that the Department, and Attorney General Bondi personally, were integral to this scheme by crafting a legal justification to enable the President to circumvent the Foreign Emoluments Clause of the Constitution, federal bribery and ethics laws, and Congress in order to acquire one of the largest foreign gifts in our history. We are particularly concerned that elements of the Department, such as the Office of Legal Counsel, were enlisted to develop such a justification and produce one or more memoranda to allow the White House to claim that such a transfer is lawful. Among other concerns, these new revelations raise key questions regarding whether Department lawyers had a full understanding of the facts to render a complete and accurate legal opinion, or were directed to assess the legality of such a transfer based on incomplete, selective, or shaded details.

    Attorney General Bondi’s personal involvement in this scheme requires particular attention. During her confirmation hearing, Attorney General Bondi committed under oath to “consult with the career ethics officials with the Department [of Justice]” to “make the appropriate decision” with respect to matters pertaining to Qatar, given her previous registration as a lobbyist for Qatar under the Foreign Agents Registration Act. The aforementioned solicitation of a $400 million gift from the Qatari government presents a plain conflict of interest that undermines the public’s trust in Attorney General Bondi’s ability to provide impartial legal advice.

    Moreover, your office is uniquely positioned to conduct such an inquiry. During Attorney General Bondi’s tenure, the Department has removed senior career ethics officials and kneecapped offices responsible for overseeing ethics and professional misconduct, including the Office of Professional Responsibility (OPR), which was established 50 years ago in response to ethics abuses and serious professional misconduct by senior Department of Justice officials during the Watergate scandal. We have well-founded concerns that OPR is no longer able to fulfill its mandate since the Department’s political leadership removed OPR’s career lead, Jeffrey Ragsdale, who had served in the role since 2020. OPR’s absence as an oversight check on the Department’s senior leadership further reinforces the need for your office to undertake an independent investigation, including into Attorney General Bondi’s actions and whether she consulted career ethics officials as she pledged to do.

    Such an investigation would complement parallel oversight requests by Members of Congress, including a request that the acting Inspector General of the Department of Defense investigate the Department of Defense’s involvement in this scheme, questions to the Secretaries of Defense and the Air Force regarding the cost and operational security of retrofitting such a plane, and letters to Attorney General Bondi regarding her role.

    The Department of Justice has a long and storied history of rooting out and combatting corruption without fear or favor that is now at risk. In this moment, the responsibility of the Office of Inspector General to “detect and deter waste, fraud, abuse, and misconduct” in the Department has never been more important. Your office has a solemn obligation to hold the Department to account, especially given the credible concerns that it has been used to justify and enable unconstitutional acts and corruption at the highest levels of government.

    Thank you for your prompt attention to this important request.

    MIL OSI USA News –

  • MIL-OSI Security: Great Falls man sentenced to 20 years in prison for drug and money laundering charges

    Source: Office of United States Attorneys

    GREAT FALLS – A Great Falls man who distributed significant amounts of methamphetamine was sentenced today to 240 months in prison to be followed by 5 years of supervised release, U.S. Attorney Kurt Alme said.

    Daniel Allen Wakeford, 61, pleaded guilty in October 2024 to one count of conspiracy to distribute and to possess with intent to distribute methamphetamine and one count of money laundering.

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

    The government alleged in court documents that law enforcement learned Daniel Wakeford had been involved in the distribution of methamphetamine in Great Falls and elsewhere for several years. A witness informed law enforcement they received methamphetamine from Wakeford for resale since 2020. Prior to 2021, the witness had received approximately two pounds of methamphetamine from Wakeford. In March 2021, however, law enforcement learned Wakeford provided the witness with roughly five pounds of methamphetamine for resale. Surveillance conducted by law enforcement corroborated the witness’s account.

    Law enforcement spoke with numerous individuals who received methamphetamine from Wakeford between approximately 2020 and 2024. Those individuals outlined how Wakeford and others would provide them with methamphetamine for resale. In February 2024, an individual referred to here as John Doe was apprehended in Billings, Montana with approximately 78 grams of methamphetamine in his possession. He outlined how, among other things, he had recently assisted Wakeford with packaging several hundred thousand dollars in cash, how John Doe received the methamphetamine from Wakeford in Great Falls, and that Wakeford made statements indicating he was conspiring to distribute a significant amount of methamphetamine.

    Law enforcement determined that during the time of the conspiracy Wakeford did not have a significant source of legitimate income. However, on November 21, 2022, Wakeford paid $16,534 in cash for a new 2022 snowmobile in Great Falls.

    Following the original indictment in this case, law enforcement conducted a search of Wakeford’s home in Great Falls, Montana and located paperwork for a storage unit that Wakeford leased in Phoenix, Arizona. Wakeford was arrested in Utah on a federal warrant while driving a motorhome valued at over $40,000. Inside the motorhome, officers located over $62,000 in cash, as well as additional paperwork related to the storage unit in Arizona. Federal agents in Arizona obtained a warrant to search the storage unit and located over 100 pounds of methamphetamine and a firearm (both pictured below).

    Assistant U.S. Attorneys Zeno Baucus and Jeff Starnes prosecuted the case. The investigation was conducted by the Russell Country Drug Task Force.

    The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Anchorage attorney arrested, charged with drug trafficking, firearm offenses

    Source: Office of United States Attorneys

    The FBI is seeking additional information.

    ANCHORAGE, Alaska – A suspended member of the Alaska Bar was arrested today after a federal grand jury in Alaska returned an indictment charging him with maintaining a drug-involved premise for the purpose of distributing and using controlled substances, and with possessing firearms as a prohibited person and in furtherance of drug trafficking.

    According to court documents, in June 2023, law enforcement became aware of Justin Facey, 44, and his alleged facilitation of a drug trafficking organization run by a California prisoner, Heraclio Sanchez-Rodriguez.

    Sanchez-Rodriguez was indicted on federal drug trafficking and murder charges in October 2023, and to date, over 60 other defendants have been charged in connection with the Sanchez-Rodriquez drug trafficking organization.

    Facey allegedly continued his own drug trafficking operations after the indictment of Sanchez-Rodriguez and other co-conspirators. The indictment against Facey alleges that between April 2024 and 2025, he utilized his residence in Anchorage to distribute and use controlled substances, namely fentanyl and methamphetamine. It also alleges that on April 30, 2025, Facey possessed four firearms in furtherance of drug trafficking crimes.

    The indictment further alleges that Facey unlawfully possessed firearms knowing that he was addicted to methamphetamine, a Schedule II controlled substance.

    Court documents explain that Facey was suspended from practicing law on Feb. 24, 2025, following numerous bar complaints.

    Facey is charged with one count of maintaining a drug-involved premises, one count of possession of firearms in furtherance of a drug trafficking crime and one count of possession of firearms by a prohibited person. The defendant is scheduled to make his initial court appearance on May 22, 2025, before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces between five years to life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    Acting U.S. Attorney William Narus of the District of Oregon, Special Agent in Charge David Reames of the Drug Enforcement Administration (DEA) Seattle Field Division and Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office made the announcement.

    The U.S. Attorney’s Office for the District of Alaska has been recused from this case with the exception of certain personnel. Assistant U.S. Attorney Steven D. Clymer from the U.S. Attorney’s Office for the Northern District of New York has been appointed as Special Attorney to the United States Attorney General to assist with this and other recused cases.  He reports to and acts under the direction of the Deputy Attorney General, or his delegee, or Acting U.S. Attorney Narus in these cases. Special Attorney Clymer supervises personnel from the District of Alaska who have been exempted from the recusal.

    The DEA Anchorage District Office and FBI Anchorage Field Office, with assistance from the Anchorage Police Department, are investigating the case.  If anyone has information concerning Facey’s alleged actions, please contact the FBI Anchorage Field Office at (907) 276-4441 or anonymously at tips.fbi.gov

    Assistant U.S. Attorneys Adam Alexander and Jennifer Ivers are prosecuting the case.

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

    ###

    MIL Security OSI –

  • MIL-Evening Report: Indonesian military operations spark concerns over displaced indigenous Papuans

    By Caleb Fotheringham, RNZ Pacific journalist

    A West Papua independence leader says escalating violence is forcing indigenous Papuans to flee their ancestral lands.

    It comes as the Indonesian military claims 18 members of the West Papua National Liberation Army (TPNPB) were killed in an hour-long operation in Intan Jaya on May 14.

    In a statement, reported by Kompas, Indonesia’s military claimed its presence was “not to intimidate the people” but to protect them from violence.

    “We will not allow the people of Papua to live in fear in their own land,” it said.

    Indonesia’s military said it seized firearms, ammunition, bows and arrows. They also took Morning Star flags — used as a symbol for West Papuan independence — and communication equipment.

    The United Liberation Movement for West Papua (ULMWP) interim president Benny Wenda, who lives in exile in the United Kingdom, told RNZ Pacific that seven villages in Ilaga, Puncak Regency in Central Papua were now being attacked.

    “The current military escalation in West Papua has now been building for months. Initially targeting Intan Jaya, the Indonesian military have since broadened their attacks into other highlands regencies, including Puncak,” he said.

    Women, children forced to leave
    Wenda said women and children were being forced to leave their villages because of escalating conflict, often from drone attacks or airstrikes.

    ULMWP interim president Benny Wenda . . . “Indonesians look at us as primitive and they look at us as subhuman.” Image: RNZ Pacific/Kelvin Anthony

    Earlier this month, ULMWP claimed one civilian and another was seriously injured after being shot at from a helicopter.

    Last week, ULMWP shared a video of a group of indigenous Papuans walking through mountains holding an Indonesian flag, which Wenda said was a symbol of surrender.

    “They look at us as primitive and they look at us as subhuman,” Wenda said.

    He said the increased military presence was driven by resources.

    President Prabowo Subianto’s administration has a goal to be able to feed Indonesia’s population without imports as early as 2028.

    Video rejects Indnesian plan
    A video statement from tribes in Mappi regency in South Papua from about a month ago, translated to English, said they rejected Indonesia’s food project and asked companies to leave.

    In the video, about a dozen Papuans stood while one said the clans in the region had existed on customary land for generations and that companies had surveyed land without consent.

    “We firmly ask the local government, the regent, Mappi Regency to immediately review the permits and revoke the company’s permits,” the speaker said.

    Wenda said the West Papua National Liberation Army (TPNPB) had also grown.

    But he said many of the TPNPB were using bow and arrows against modern weapons.

    “I call them home guard because there’s nowhere to go.”

    This article is republished under a community partnership agreement with RNZ.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI China: China, ASEAN fully complete negotiations on CAFTA 3.0 upgrade

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

    An aerial drone photo taken on April 30, 2025 shows a cargo ship berthing at a container dock of Qingdao Port in Qingdao, east China’s Shandong Province. [Photo/Xinhua]

    China and 10 ASEAN countries have fully completed negotiations on the Version 3.0 China-ASEAN Free Trade Area (CAFTA), a milestone in bilateral trade cooperation that will inject greater momentum and stability into the world economy.

    The achievement was announced during a special online meeting of economic and trade ministers from China and ASEAN on Tuesday, according to China’s Ministry of Commerce.

    CAFTA 3.0 will send a strong signal in support of free trade and open cooperation, said the ministry, noting that the agreement will inject greater certainty into regional and global trade, and serve as a model for openness, inclusiveness and win-win cooperation.

    Launched in 2010, the CAFTA, the world’s largest free trade zone among developing countries, has undergone continuous upgrades, with its Version 2.0 agreement signed in 2015 and coming into effect in 2019.

    With negotiations for CAFTA 3.0 now concluded, both parties will strive to formally sign the CAFTA 3.0 upgrade protocol before the end of this year, the ministry revealed.

    Exemplifying cooperation across the Global South, the conclusion of CAFTA 3.0 negotiations will greatly enhance China-ASEAN cooperation concerning industrial capacity, technology and trade, while boosting ASEAN countries’ economic growth and industrialization, said Feng Gui, a law professor at Guangxi University of Finance and Economics in south China.

    According to the commerce ministry, CAFTA 3.0 will introduce nine new chapters covering areas such as the digital economy, the green economy and supply chain connectivity.

    These new chapters are major breakthroughs as they will help China and ASEAN promote broader and deeper regional economic integration under new circumstances, and will facilitate the integration of their industrial and supply chains, the ministry said.

    In particular, the establishment of supply chain connectivity rules under CAFTA 3.0 marks a new milestone in supply chain cooperation between the two sides, as these rules will effectively facilitate the flow of critical goods and services while enhancing infrastructure connectivity, said Zhang Xiaojun, vice president of Southwest University of Political Science and Law in Chongqing Municipality.

    “These rules will not only optimize the efficient cross-border flow of production factors but also provide institutional support for building secure and stable supply chains,” Zhang explained.

    According to multiple experts, the digital economy will be another key sector to benefit from CAFTA 3.0, as closer cooperation under the agreement will help bridge the digital gap between China and ASEAN countries, paving the way for further economic integration.

    China’s experience in digital infrastructure development is expected to provide significant investment and technological support to ASEAN nations, and create more opportunities for small and medium-sized enterprises, said Chen Zhe, an associate professor at the School of International Law of Southwest University of Political Science and Law.

    Negotiations for CAFTA 3.0 have surpassed China’s previous free trade agreements in both scope and depth, demonstrating the country’s resolve to deepen openness in the digital economy sector, Chen added.

    “CAFTA 3.0 will not only strengthen economic and trade cooperation between China and ASEAN countries, but also underscore China’s proactive stance in actively shaping international digital trade rules and advancing global digital economic development,” Chen noted.

    Home to nearly a quarter of the world’s population, China and ASEAN had by 2024 been each other’s largest trading partner for five consecutive years. Bilateral trade value soared from less than 8 billion U.S. dollars in 1991 to nearly 1 trillion dollars in 2024.

    Data from the General Administration of Customs showed that in the first four months of 2025, trade between China and ASEAN had reached 2.38 trillion yuan (about 330.85 billion U.S. dollars), up 9.2 percent from a year earlier.

    ASEAN and China can further deepen their partnership, achieve high-quality common development, promote cooperation in areas such as intelligent manufacturing, and enhance connectivity and green transformation, Kao Kim Hourn, secretary-general of ASEAN, said at Tuesday’s meeting.

    Experts emphasized that the conclusion of CAFTA 3.0 negotiations will further strengthen the institutional framework for economic and trade cooperation between China and ASEAN, exploring a rule-based approach to cooperation. The CAFTA, through the integration of rules and standards, breaks away from the traditional models of rule- and standard-setting dominated by developed nations.

    Feng said that in an era marked by global trade protectionism and decoupling, China and ASEAN, as friendly neighbors and models of economic cooperation, are providing new support for the global multilateral trade system.

    “China is willing to work with ASEAN to maintain the stability and smooth operations of global industrial and supply chains, make greater contributions to the development of both sides, and safeguard international fairness and justice,” said China’s Commerce Minister Wang Wentao. 

    MIL OSI China News –

  • MIL-OSI New Zealand: Fatal Crash, Dansey Road, Ngongotahā Valley

    Source: New Zealand Police


    Location:

    Bay of Plenty

    Police can confirm one person has died following a two-vehicle crash on Dansey Road, Ngongotahā Valley.

    Two others involved in the crash around 8am were also injured – one had serious injuries and one had minor injuries.

    The Serious Crash Unit is in attendance.

    Dansey Road remains closed and diversions are in place onto State Highway 5.

    ENDS

    Issued by Police Media Centre

    MIL OSI New Zealand News –

  • MIL-OSI Australia: E-scooter trial to be extended for another 12 months

    Source: New South Wales Ministerial News

    The share hire e-scooter trial in urban Bendigo will be extended for another 12 months, following a decision at Council last Monday night.

    Mayor Cr Andrea Metcalf said the trial extension was approved after much deliberation.

    “Council carefully considered all of the findings from the community survey, data, and feedback from an external stakeholder group – this includes Victoria Police and Bendigo Health, who have been involved since the trial began last year,” Cr Metcalf said.

    “Much of community feedback centred on issues such as poorly parked e-scooters obstructing footpaths and buildings, and unsafe behaviour from some riders who are not complying with stricter Victorian road rules for e-scooters.

    “The survey also highlighted that regular users, particularly people aged under 34, have benefited from the share hire service. For this group, the trial e-scooters are seen as a convenient and useful transport option, improving connectivity between precincts in urban Bendigo.

    “There were also calls in the feedback to expand the operating area to include Golden Square, Long Gully and White Hills to align with the shared walking/cycling networks in place.

    “The survey and stakeholder collaboration was intentionally designed to focus on areas where the City has the authority to act. While we understand there are broader concerns about e-scooters, the aim was to collect feedback that could directly inform potential improvements or policy decisions within our jurisdiction.

    “Council has very much taken all of this on board which has resulted in the trial being extended for another 12 months. This next phase will incorporate key learnings from the initial trial and provide opportunities for further improvement based on a set of recommendations.

    “New technology to curb illegal footpath riding has been proposed by the Victorian Government for share hire e-scooters, which is something we welcome, together with tougher e-scooter Victorian Road Rules and penalties that are enforced by Victoria Police.

    “Improved parameters during the extended trial will allow for a more accurate assessment of whether or not share hire e-scooters can serve as a viable alternative transport option to meet the needs of community members and tourists.”

    Beam Mobility (Beam), which has operated the trial for the past 12 months, will have its contract extended temporarily until the procurement process for a commercial operator is finalised.

    The trial has been operating a small trial area in urban Bendigo to provide better links between precincts and encourage a shift away from cars for shorter trips.

    The share hire e-scooters are only available for hire between 5am and 11pm, 7 days a week. The maximum speed limit is set at 20km/h, and 15km/h in some busy areas, and e-scooters are only allowed to ride on roads, bicycle lanes, and shared cycle paths in line with Victorian road rules. It is illegal to ride e-scooters on footpaths and significant penalties apply. The Victorian Police enforce fines.

    To view more survey results, visit:

    MIL OSI News –

  • MIL-OSI USA: Durbin, Graham, Reps. Ocasio-Cortez & Lee Introduce Bipartisan Legislation To Combat Non-Consensual, Sexually-Explicit Deepfake Imagery

    US Senate News:

    Source: United States Senator for Illinois Dick Durbin

    May 21, 2025

    The DEFIANCE Act would give survivors a tool to reclaim their image and freedom

    WASHINGTON – U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, U.S. Representative Alexandria Ocasio-Cortez (D-NY-14), U.S. Senator Lindsey Graham (R-SC), and U.S. Representative Laurel Lee (R-FL-15) today reintroduced the Disrupt Explicit Forged Images and Non-Consensual Edits Act(DEFIANCE Act), bipartisan, bicameral legislation that would grant survivors the right to take civil action against individuals who knowingly produce, distribute, solicit andreceive, or possess with the intent to distribute nonconsensual sexually-explicit digital forgeries. Last July, the Senate unanimously passed the DEFIANCE Act of 2024.

    “Sexually-explicit ‘deepfake’ content is often used to exploit and harass women and girls, and no one should have their privacy and autonomy violated by someone else generating explicit AI-generated content of them,” said Durbin. “Although the imagery may be fake, the harm to the victims is very real. Victims have lost their jobs, their reputations, and many have suffered from life-altering depression or anxiety. By introducing the DEFIANCE Act, we’re giving power back to the victims; cracking down on the production, receipt, distribution, and possession of ‘deepfake’ images; and holding those responsible for the images accountable.”

    “We’re reintroducing the DEFIANCE Act to empower survivors of nonconsensual deepfake pornography with the right to take civil action so they can pursue justice for themselves,” said Ocasio-Cortez. “I’m proud to lead this legislation with Representative Lee, and Senators Durbin and Graham to provide victims with the federal protections they deserve.”

    “I am proud to co-lead the bipartisan DEFIANCE Act, which gives victims a civil right of action when predators attempt to use exploitative AI-generated intimate images—so-called deepfakes—to intimidate, shame, or harm them,” said Lee. “We’ve seen stories across the country of women and girls as young as 12 years old victimized by this new and growing form of sexual violence. The time for action is now. This legislation will complement the TAKE IT DOWN Act, which was recently signed into law. Together, they both create both accountability and recourse. I am grateful for my colleagues’ work on these issues, and look forward to moving this bill through Committee.”

    The bill text is available here. 

    In addition to Durbin and Graham, the DEFIANCE Act is cosponsored by Senators Amy Klobuchar (D-MN), Angus King (I-ME), Mike Lee (R-UT), Martin Heinrich (D-NM), and Peter Welch (D-VT).

    In addition to Ocasio-Cortez and Lee, the DEFIANCE Act is cosponsored by Representatives Kat Cammack (R-FL-03), Chris Deluzio (D-PA-17), Debbie Dingell (D-MI-12), Mike Lawler (R-NY-17), Ted Lieu (D-CA-36), Nancy Mace (R-SC-06), Max Miller (R-OH-07), Brittany Pettersen (D-CO-07), and Jeff Van Drew (R-NJ-02).

    The legislation is endorsed by the National Women’s Law Center, National Center on Sexual Exploitation (NCOSE), Raven, Public Citizen, Sexual Violence Prevention Association, Democratic Women’s Caucus, UltraViolet, Joyful Heart Foundation, My Image My Choice, Reclaim Coalition, SIECUS: Sex Ed for Social Change, American Association of University Women (AAUW), End Rape on Campus, Foundation Ra, Explain the Asterisk, Protect America’s Daughters, Sexual Assault Response Coalition (SARC), Students Against Sexual Assault, What Were You Wearing, Rooting Movements, Recognize Violence, Change Culture (RVCC), and Street Grace. Quotes from these organizations follow.

    “As a survivor of deepfake pornography, I know the trauma of having your body and identity manipulated and weaponized. It is a violation that leaves you feeling powerless. The DEFIANCE Act changes that. It empowers victims to seek justice through a civil right of action, finally giving us a path to hold perpetrators accountable. With the number of deepfakes doubling every six months—and over 98% of them being pornographic—we are in a crisis. This bipartisan bill addresses the creation, distribution, and solicitation of nonconsensual deepfake pornography. It’s not just necessary—it’s urgent. Survivors deserve justice. Congress must act swiftly to pass the DEFIANCE Act and take a meaningful stand against digital sexual violence,” said Omny Miranda Martone, Founder & CEO of the Sexual Violence Prevention Association (SVPA).

    “Survivors of image-based sexual abuse deserve a clear path to civil justice,” said Stefan Turkheimer, VP of Public Policy at RAINN, the nation’s largest anti-sexual violence organization. “The DEFIANCE Act is the right solution — and now is the right time to build on the growing momentum to ensure survivors have real power to hold offenders accountable, including the ability to pursue civil remedies against those who use AI to create and spread sexually explicit images meant to cause harm.”

    The volume of “deepfake” content available online is increasing exponentially as the technology used to create it has become more accessible to the public. The overwhelming majority of this material is sexually-explicit and is produced without the consent of the person depicted. A 2019 study found that 96 percent of “deepfake” videos were nonconsensual pornography.

    One researcher found that:

    • The number of nonconsensual pornographic “deepfake” videos available online has increased ninefold since 2019;
    • Such videos have been viewed almost four billion times;
    • Monthly traffic to the top 20 “deepfake” sites increased by 285 percent from July 2020 to July 2023; and
    • Search engines directed 25.2 million visits to the top five most popular “deepfake” sites in July 2023 alone.

    -30-

    MIL OSI USA News –

  • MIL-OSI Australia: Call for witnesses – Domestic Violence Offences – Johnston

    Source: Northern Territory Police and Fire Services

    NT Police Force general duties members arrested a 22-year-old male in relation to a domestic violence incident that occurred in Johnston last night.

    About 8pm, the Joint Emergency Services Communication Centre received a report that an incident was unfolding at a residential address, with a male assaulting a female known to him.

    Neighbours, upon hearing the disturbance contacted Triple Zero and rendered assistance and provided first aid prior to St John Ambulance and police attending.

    Upon police arrival, the offender was arrested and conveyed to Palmerston Watch House, where he remains in custody as investigations continue.

    The victim, a 22-year-old female, was conveyed by St John Ambulance to Royal Darwin Hospital in a critical condition.

    The Domestic Violence Investigation Unit has carriage of the investigation.

    NT Police appreciate the intervention and aid provided by neighbours and urge anyone who may have witnessed the incident to contact police on 131 444. Please reference to job number P25138375.

    If you or someone you know are experiencing difficulties due to domestic violence, support services are available, including, but not limited to, 1800RESPECT (1800737732) or Lifeline 131 114.

    MIL OSI News –

  • MIL-OSI Australia: Shannakian Jewellery Pty Ltd Public warning

    Source: Australian Capital Territory Policing

    Consumer Affairs Victoria is warning anyone wanting to buy jewellery from Shannakian Jewellery to be careful, after receiving 67 complaints from consumers about the company.

    Trading as Shannakian Fine Jewellery, the company sells jewellery on its website, Instagram and in its Melbourne showroom. Most of the complaints received by Consumer Affairs Victoria are from sales on their Instagram page, which has over 25,000 followers.

    Since 15 February 2021, complaints have been received from consumers across Australia and overseas who allege the business:

    • accepted payment for jewellery but failed to provide it in a reasonable time, or at all
    • failed to provide refunds when requested and required, and
    • failed to provide a refund for faulty products.

    In one case, a consumer claimed to have paid the business $27,000 for a necklace. The jewellery was not provided. After following up many times, the consumer asked for a refund, which was not provided.

    Consumer Affairs Victoria Acting Director, David Joyner, is urging consumers to be wary before purchasing Shannakian Fine Jewellery products.

    If you have had a bad experience with Shannakian Fine Jewellery, contact us through our complaint form, email or by calling 1300 55 81 81.

    Read our public warning:

    MIL OSI News –

  • MIL-OSI New Zealand: Homicide enquiry launched in Kaikohe

    Source: New Zealand Police

    Northland Police have launched a homicide investigation following the discovery of man’s body at Horeke, north of Kaikohe.

    A man arrived outside the Kaikohe Police Station last night at around 8.30pm.

    “After speaking with this man, Police went to a Waikerikeri Road property where a male was found with critical injuries,” Detective Inspector Rhys Johnston, of Northland CIB, says.

    “The man was provided urgent medical attention but sadly died at the scene.”

    An investigation is underway into the circumstances of what happened last night.

    “The enquiry is in the very early stages,” Detective Inspector Johnston says. 

    “We are continuing to speak to the man who visited the Police Station as part of this investigation.”

    A post-mortem will be conducted in the coming days to determine a cause of death.

    “Police extend condolences to whānau for their loss,” Detective Inspector Johnston says.

    Police enquiries are ongoing, and anyone with information that can assist with our enquiries are asked to update us online now or call 105.

    Please use this reference number: 250522/0155.

    ENDS.

    Nicole Bremner/NZ Police 

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Unexplained child death under investigation

    Source: New Zealand Police

    Police are investigating the unexplained death of a 3-year old girl in Kaikohe yesterday.

    Emergency services responded to a Tawanui Road address at around 6.15pm.

    “The child was unresponsive and sadly, despite medical treatment provided, died at the scene,” Detective Inspector Rhys Johnston, of Northland CIB, says.  “Police extend their condolences to whānau.”

    A post-mortem will be conducted in the next few days to determine cause of death.

    Police enquiries into the circumstances surrounding the death are ongoing.

    ENDS.

    Nicole Bremner/NZ Police 

    MIL OSI New Zealand News –

  • MIL-OSI USA: Houston Pharmacy Owner Sentenced to 19 Years in Prison for Illegal Distribution of Opioids and Tax Fraud

    Source: US State of North Dakota

    A Texas man was sentenced on Monday to 19 years in prison for unlawfully conspiring to distribute millions of opioid pills and aiding the falsification of tax records. 

    According to court documents, Christopher Obaze, 64, of Houston, Texas, was the owner and pharmacist-in-charge of Chrisco Pharmacy. Obaze and his co-conspirators operated Chrisco Pharmacy as an illegal “ghosting pharmacy,” purchasing pharmaceutical opioids and other commonly abused prescription drugs from wholesalers and then selling them in bulk to drug traffickers, without involving physicians, patients, or prescriptions. From January 2018 through October 2021, Obaze and his co-conspirators distributed at least 2,268,700 hydrocodone 10-325 mg and oxycodone 30 mg pills as part of the scheme. 

    The defendant and his pharmacy technician attempted to conceal their illegal activities by reporting no dispensing of the drugs to the Texas State Board of Pharmacy’s prescription monitoring program after July 2018, and by structuring cash deposits and submitting false documents to banks to maintain accounts to hold the proceeds of their unlawful distribution scheme. Obaze also aided and assisted in the preparation and presentation of false and fraudulent tax returns to the IRS by understating, among other things, the gross receipts of Chrisco Pharmacy. 

    Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, Special Agent in Charge William Kimbell of the Drug Enforcement Administration (DEA) Houston Division, and Special Agent in Charge Lucy Tan of the IRS Criminal Investigation (IRS-CI) Houston Field Office made the announcement. 

    The DEA and IRS-CI investigated the case. 

    Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section prosecuted the case. 

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.

    MIL OSI USA News –

  • MIL-OSI USA: Texas Doctor Who Falsely Diagnosed Patients Sentenced to 10 Years’ Imprisonment in Connection with $118M in Fraudulent Health Care Claims

    Source: US Justice – Antitrust Division

    Headline: Texas Doctor Who Falsely Diagnosed Patients Sentenced to 10 Years’ Imprisonment in Connection with $118M in Fraudulent Health Care Claims

    A Texas rheumatologist was sentenced to 10 years in prison and three years of supervised release for perpetrating a $118 million health care fraud scheme in which he falsely diagnosed patients with chronic illnesses to bill for tests and treatments that the patients did not need. Jorge Zamora-Quezada M.D., 68, of Mission, falsified patient records to support the false diagnoses after receiving a federal grand jury subpoena.  

    MIL OSI USA News –

  • MIL-OSI USA: Klobuchar Opening Remarks and Questions at Antitrust Subcommittee Hearing on AI-Generated Deepfakes

    US Senate News:

    Source: United States Senator for Minnesota Amy Klobuchar
    WATCH KLOBUCHAR’S FULL REMARKS AND QUESTION HERE
    WASHINGTON – U.S. Senator Amy Klobuchar (D-MN), Ranking Member of the Senate Judiciary Subcommittee on Privacy, Technology, and the Law, held a hearing titled “The Good, the Bad, and the Ugly: AI-Generated Deepfakes in 2025.” 
    Testifying at the hearing was Country Music Singer-Songwriter, Martina McBride; CEO of the Recording Industry Association of America, Mitch Glazier; Senior Legal Counsel at the National Center on Sexual Exploitation (NCOSE), Christen Price; Director of Technology Policy at Consumer Reports, Justin Brookman; and Head of Music Policy at Youtube, Suzana Carlos.
    “AI-enabled scams have become far too common. We know that it takes only a few seconds of audio to clone a voice. Criminals can pull the audio sample and personal back story from public sources, said Klobuchar at the hearing. “We also need rules of the road to ensure that AI technologies empower artists and creators and not undermine them. Art just doesn’t entertain us. It’s something that uplifts us and brings us together.”
    “That’s why this NO FAKES Act is so important. It protects people from having their voice and likeness replicated using AI without their permission, all within the framework of the Constitution, and it protects everybody, because everyone should have a right to privacy.” 
    A rough transcript of Klobuchar’s opening remarks and questions is available below. Video is available HERE.
    Senator Klobuchar: Thank you very much, Senator Blackburn, I’m very excited about this subcommittee and the work we’ve already done together for years on this issue and similar issues when it comes to tech.
    I share your hopes for AI and see that we’re on this cusp of amazing advancements if this is harnessed in the right way, but I’m also concerned if things go the wrong way. I think it was David Brooks, a columnist, that said he has trouble writing about it because he doesn’t know if it will take us to Heaven or Hell. So it’s our job to head to heaven, and it’s our job to put some rules in place, and this is certainly one of them. 
    We want this to work for children, for consumers, for artists, and not against them. And you brought up the example Chair, of Randy Travis who was at the event that we recently had with you, and Senator Coons and myself about the bill and how he used AI in such a positive way. But then we know there are these risks. 
    And one of the things that I think is really exciting about this week is that, in fact, on Monday, the President signed my bill with Senator Cruz, the TAKE IT DOWN Act, into law. This was a bill I discussed with him and the First Lady at the inaugural lunch. 
    It’s an example of “use-every-moment-you-have” to advance a cause. And then she supported the bill and helped to get it passed in the House. Senator Cruz and I had already passed it in the Senate, and we were having some trouble getting it done over in the House. So we’re really pleased, because it actually does set some track moving forward, even though this bill, that bill, is about nonconsensual porn, both AI created and non AI created, it’s had huge harmful effects, about 20 some suicides a year of young kids who think they’re sending a picture innocently to a girlfriend or a potential boyfriend, and then it gets sent out on their school internet. It gets sent out to people they know, and basically, they believe their life is in ruins, and don’t have any other context, and take their own lives. And that’s just the most obvious and frightful part of this, but there’s others as well. So I’m hoping this is going to be a first step to some of the work that we can do, including with the bill that we’re going to be discussing today. 
    AI-enabled scams have become far too common. We know that it takes only a few seconds of audio to clone a voice. Criminals can pull the audio sample and personal back story from public sources. 
    Just last week, the FBI was forced to put out an alert about scams using AI-cloned voices of FBI agents and officials asking people for sensitive payment information.
    Jamie Lee Curtis was forced to make a public appeal to Mark Zuckerberg to take down an unauthorized, deepfake ad that included her digital replica endorsing a dental product. While Meta removed the ad after her direct outreach, most people don’t have that kind of influence. 
    We also need rules of the road to ensure that AI technologies empower artists and creators and not undermine them. Art just doesn’t entertain us. It’s something that uplifts us and brings us together. 
    When I recently met with Cory Wong, a Grammy-nominated artist from Minnesota, he talked about how unauthorized digital replicas threaten artists’ livelihoods and undermine their ability to create art. 
    So this is not just a personal issue. It’s also an economic issue. One of the reasons our country, one of our best exports to the world, is music and movies. When you look at the numbers and how we’ve been able to captivate people around the world, that’s going to go away if people can just copy everything that we do. 
    And one of the keys to our success as a nation in innovation has been the fact, and Senator Coons does a lot of work in this area, [that] we’ve been able to respect copyrights and patents and people’s own right to their own products. 
    So that’s why this NO FAKES Act is so important. It protects people from having their voice and likeness replicated using AI without their permission, all within the framework of the Constitution, and it protects everybody, because everyone should have a right to privacy. 
    I also am working in the space on AI to put some base rules in place in my role on the Commerce Committee. Senator Thune and I have a bill that we’re reintroducing on this to set some rules for NIST to be able to put out there for companies that are using AI. And then I’m always concerned about its effect on democracy, but that is for a different day and in a different committee. 
    But I do want to thank Senator Blackburn for her willingness to come out on doing something about tech, including the work she does with Senator Blumenthal, the work that we’ve done together on commerce. And if Monday is any sign with the first bill getting through and there in that Rose Garden signing ceremony, there’s more to come, and so thank you and look forward to hearing from the witnesses.
    …
    Klobuchar: All right. Thank you very much. I guess I’ll start with Mr. Brookman, the non-Grammy winner. I want to talk to you just a little bit about this consumer angle here, which I think is interesting to people. And I think at its core, all of us involved in this legislation have made it really clear that’s not just people who are well known that will be hurt by this eventually, and that getting this bill passed as soon as possible is just as important for everyone, but I do so appreciate Ms. McBride being willing to come forward, because those stories and the stories that we’ve heard from, like I mentioned, Jamie Lee Curtis, or the stories that we’ve heard from many celebrities, are very important to getting this done. So you just did a report on AI-generated voice cloning scams, including that, AI voice cloning applications, in the words of the report, presents a clear opportunity for scammers, and we need to make sure our consumer protection enforcers are prepared to respond to the growing threat of these scams. I had this happen to my state director’s husband, who their kid is in the Marines, and they got a call. They figured out that it wasn’t really him asking for stuff and money. They knew he couldn’t call from where he was deployed to. This is just going to be happening all over the place, and the next call will be to a grandma who thinks it’s real, and she sends her life savings in. So I have called on the FTC and the FCC to step up their efforts to prevent these voice cloning scams. And what are some of the tools that agencies need to crack down on these scams, even outside of this bill?
    Justin Brookman: Yeah, absolutely, so I think the first thing the Federal Trade Commission probably needed is more resources. They only have like 1200 people right now for the entire economy. That’s down from like seven, that’s down from like 100 just in the past couple of months.
    Klobuchar: Down from way down from even during like, the Nixon Era.
    Brookman: Yeah, like 1700 it used to be and the economy has grown like three or four times. Chairman Ferguson has, Chairman Ferguson has said more cuts are coming, which I think is the wrong direction. I worked for the Federal Trade Commission for a couple of years. We could not do, like, a fraction of all the things that we wanted to do to protect consumers, so more people, more capacity, more technologists. Like, there’s just not enough technology capacity in government. I was in the office of technology research and investigation there, that was like five people. That’s just not enough, obviously, with all these very sophisticated, I mean, just deep fakes alone, let alone the rest of the tech economy, the ability to get penalties and even injunctive relief, right if someone, if someone gets caught stealing something, the FTC often doesn’t have the ability to make them give the money back. I know this, under this committee has tried to restore that authority, but that would be important. And also, like again, maybe the FTC could have rule-making authority. But also this, I would like to see Congress consider legislative authority to address tools like again, if you are offering a tool that can be used only for harm, voice impersonation, deepfake pornographic images, maybe there should, there should be responsibilities to make sure it’s not being used for harm.
    Klobuchar: Okay, thank you. Ms. Carlos, can you talk about what YouTube is doing to ensure it’s not facilitating these scams?
    Suzana Carlos: Sure, and thank you for the question, Senator.
    Klobuchar: And thanks for your support for the bill
    Carlos: Of course. So, just to primarily consider, we obviously see great and tremendous opportunity coming from AI, but we also acknowledge that there are risks, and it is our utmost responsibility to ensure that it is deployed responsibly. So we’ve taken a number of efforts to protect against unharmful contact on our platform. Primarily, we have uploaded, we have updated our privacy policies last year to ensure that all individuals can now submit a notice to YouTube when their unauthorized voice or likeness has been used on our platform, and once reviewed, if it is applicable, and we’ve confirmed that that content should be removed, we will take it down. We’ve additionally implemented watermarks on our AI products. We originally began with both image and watermarks using our SynthID technology, and we’ve recently expanded it to also be applied to text generated from our Gemini app and web experience. And most recently, as part of our VO video tool. We’ve also taken the additional step to become a member of C2PA, the Coalition for Content Provenance and Authenticity, and there, we’re serving as a steering member to work with the organization to create indicators and markings that will allow the content provenance that was created off platforms to additionally be recognized, and we’re deploying those technologies across our platform.
    Klobuchar: Okay, thank you. We mentioned the TAKE IT DOWN Act, and thank you for the support for that. Mr. Glazer, you talked about how this is the first federal law related to generative AI, and that it’s a good first step. And could you talk about how, if we don’t move on from there and we just stop and don’t do anything for years, which seems to be what’s been going on, what’s going to happen here, and why it’s so important to do this.
    Mitch Glazier: I think there’s a very small window, and an unusual window, for Congress to get ahead of what is happening before it becomes irreparable. The TAKE IT DOWN Act was an incredible model. It was done for criminal activity, you know, …
    Klobuchar: Yeah, I know. 
    Glazier:  Yeah, right. You know, you wrote it, but it was a great model, but it only goes so far. But we need to use that model now, and we need to expand it carefully in a balanced way to lots of other situations, which is exactly what the NO FAKES Act does. And I think, you know, we have a very limited amount of time in order to allow people and platforms to act before this gets to a point where it’s so far out of the barn that instead of encouraging responsible AI development, instead, we allow investment and capital to go into AI development that hurts…
    Klobuchar: Stealing things…
    Glazier: So let’s encourage investment the right way to boost great AI development and be first. Let’s not be the folks that encourage investment in AI technologies that really harm us.
    Klobuchar: And Ms. Price, you’ve expressed concerns about this 10-year moratorium on state rules. I’m very concerned, having spent years trying to pass some of these things, and I think that one of the ways we pass things quickly, like Mr. Glazier was talking about, is if people actually see a reason that they don’t want to patch work, they want to get it done. But if you just put a moratorium, and you look at, like, the Elvis law coming out of Tennessee, Ms. McBride, and some of the other things that would stop all of that. Could you, my last question here before we go to another round, could you talk about why you’re concerned about what is right in front of us now, which is this 10-year moratorium?
    Christen Price: Yes, thank you for the question, Senator. We’re concerned about the moratorium because it’s basically signaling to the AI companies that they can kind of do whatever they want in the meantime, and it inhibits States’ ability to adapt their laws to this form of technology that’s changing very quickly and then has this potential to cause great harm. 
    Klobuchar: Thank you.

    MIL OSI USA News –

  • MIL-OSI Australia: Drug seizures – Alice Springs

    Source: Northern Territory Police and Fire Services

    Yesterday, detectives from the Southern Drug Investigation Unit executed multiple search warrants at commercial premises resulting in three arrests and significant seizures of methamphetamine, ketamine and cannabis.

    In the morning, police executed a search warrant at a hotel where they located and seized a less than commercial quantity of methamphetamine, a commercial quantity of ketamine and a less than traffickable amount of cannabis. A 47-year-old female was arrested and charged with:

    • Supply Schedule 1 (Ketamine) – Commercial Quantity
    • Supply Schedule 1 (Methamphetamine) – Less than commercial quantity
    • Possess Schedule 1 (Ketamine) – Commercial Quantity
    • Possess Schedule 1 (Methamphetamine) – Less than commercial quantity
    • Possess Schedule 2 (Cannabis) – Less than traffickable

    She was remanded to appear in the Alice Springs Local Court today.

    In a separate incident that afternoon, detectives conducted searches at the airport where they located and seized several packages containing a significant amount of methamphetamine. A 44-year-old male and a 51-year-old male were arrested and charged with:

    • Possess schedule 1 (Methamphetamine) – commercial quantity
    • Supply schedule 1 (Methamphetamine) – commercial quantity

    Both males were remanded to appear in the Alice Springs Local Court today.

    Detective Acting Superintendent Deanne Ward said, “If these drugs had entered our regional township and communities, it could have had devastating impacts on people’s lives and social cohesion.”

    Anyone with information on the supply of alcohol or drugs into remote communities can call police on 131 444 or make an anonymous report to Crime Stoppers on 1800 333 000.

    MIL OSI News –

  • MIL-OSI Security: U.S. Marshals Arrest Woman in Florida Wanted for Money Laundering in Texas Since 2015

    Source: US Marshals Service

    Corpus Christi, TX – On May 16, 2025, the Cold Case Unit of the U.S. Marshals Service, Gulf Coast Violent Offenders and Fugitive Task Force – Corpus Christi Division and the Florida/Caribbean Regional Fugitive Task Force (FCRFTF) joined to arrest Olga Escamilla for Failure to Appear on a Money Laundering charge originating in Kenedy County, Texas.

    On September 19, 2012, Escamilla was indicted for Money Laundering, involving a sum between $20,000 and $100,000, by a Grand Jury in Kleberg County, Texas. While on bond, Escamilla fled to Mexico.

    On June 19, 2015, the 105th Judicial District Court for Kenedy County, Texas issued a fully extraditable arrest warrant for Failure to Appear, involving the Money Laundering charge.

    Utilizing various investigative methods, along with working with multiple law enforcement partners, the Cold Case Unit was able to determine Escamilla’s location. Investigators collaborated with senior inspectors assigned to the FCRFTF, who arrested Escamilla in Florida.

    The Cold Case Unit was formed to devote specialized investigative efforts to capturing fugitives who have been on the run for several years. The United States Marshals Service is committed to expediently investigating the locations of, and ultimately apprehending, fugitives regardless of how many years they have been on the run.

    The U.S. Marshals led Gulf Coast Violent Offenders Task Force with base in Corpus Christi, Texas, is integrated by remarkable agents from Texas Department of Public Safety, Nueces County Sheriff’s Office, Aransas County Sheriff, Texas Department of Criminal Justice, Corpus Christi Police Department, U.S. Immigration and Customs Enforcement, Kleberg County Attorney Office and other partner federal agencies that work together for the protection of our communities.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office recovers approximately $450,000 for victims of Missoula fraudster

    Source: Office of United States Attorneys

    BILLINGS  — The U.S. Attorney’s Office recently recovered approximately $450,000 from a Missoula man who defrauded his victims out of almost $1 million by fraudulently inducing them to invest in his transportation and logistics companies, U.S. Attorney Kurt Alme said today.

    The defendant, Jason L. Matheny, was convicted of wire fraud under 18 U.S.C. § 1343 on November 22, 2019. The court sentenced him to five years of probation, subject to several conditions, and ordered him to pay $994,521.16 in restitution to his victims. In late 2024, Matheny sold a commercial property in Missoula and, because of its restitution lien, the government secured $448,965.36 to be paid to his victims.

    “The collection of restitution for victims of fraud is an essential part of the criminal justice system and a priority for the Department of Justice. Collection from convicted felons can be exceedingly difficult because money is often spent, invested, and moved around. Through the dedication and hard work of the Financial Litigation Program, the U.S. Attorney’s Office was able to execute against Mr. Matheny’s business property. This allowed the proceeds of that sale to be routed to Mr. Matheny’s victims rather than to him.” U.S. Attorney Alme said.

    In September 2024, U.S. Probation requested a summons for revocation of Matheny’s term of probation, alleging he had violated the terms of his sentence by failing to provide requested financial information. Matheny admitted the violation in November 2024 and the Court extended his probation for an additional year.

    XXX

    MIL Security OSI –

  • MIL-OSI Security: Jamestown man going to prison for selling meth

    Source: Office of United States Attorneys

    BUFFALO, N.Y. – U.S. Attorney Michael DiGiacomo announced today that Richard S. Dean, 49, of Jamestown, NY, who was convicted of conspiring to possess with intent to distribute, and distributing, 500 grams of methamphetamine, was sentenced to serve 70 months in prison by U.S. District Judge Richard J. Arcara.

    Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that the defendant was a drug trafficking associate of co-defendant Douglas Beardsley. During the conspiracy, Dean would go over to Beardsley’s residences on Linden and Forest Avenues in Jamestown several times a week and pick up ounces of methamphetamine and grams of heroin to sell for Beardsley. At times, Beardsley would “front” the narcotics to the defendant to sell. Dean and Beardsley would often communicate about their drug trafficking, including through their Facebook accounts.

    On January 6, 2019, local law enforcement observed a suspicious male, later identified as the defendant. Dean became evasive and ran from officers. Shortly thereafter, the defendant was taken into custody and arrested on an outstanding warrant. Dean was transported to the Jamestown City jail where a subsequent search revealed that he possessed methamphetamine, heroin, plastic baggies, a digital scale, and Dimethyl Sulfone, a common cutting agent for methamphetamine. On March 21, 2019, the defendant pleaded guilty in Chautauqua County Court to Criminal Possession Controlled Substance-5th: Intent To Sell and Criminal Sale Controlled Substance-5th Degree.

    Douglas Beardsley was previously convicted and sentenced to serve 176 months in prison.

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

    The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank Tarentino, New York Field Division; and the Jamestown Police Department, under the direction of Chief Timothy Jackson.

    # # # #

     

     

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  • MIL-OSI Security: City of Miami Police Officer Pleads Guilty to COVID-19 Relief Fraud

    Source: Office of United States Attorneys

    MIAMI – Yesterday, Tramaine Liptrot, 43, a police officer with the City of Miami Police Department (MPD) who has been relieved of duty, pleaded guilty to wire fraud in connection with fraudulent applications for two Paycheck Protection Program (PPP) loans totaling over $200,000. Liptrot entered his guilty plea in Miami before U.S. District Judge Beth Bloom.

    According to the facts admitted at the change of plea hearing, Liptrot, along with being an MPD Police Officer, was the owner and President of Liptrots Tax Services L.L.C (Liptrots Tax). With the assistance of an associate, Liptrot fraudulently obtained two PPP loans in the name of Liptrots Tax.

    On June 22, 2020, working with the associate, Liptrot caused the submission of a false and fraudulent PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $36,700 for four employees, and a fraudulent IRS Form 944 in support thereof, falsely claiming that Liptrots Tax paid its employees $440,397 during 2019. As a result of this fraudulent PPP application, Liptrots Tax obtained approximately $91,750 in PPP loan proceeds from an SBA approved PPP lender.

    On March 3, 2021, again working with the associate, Liptrot caused the submission of a false and fraudulent second-draw PPP loan application on behalf of Liptrots Tax, falsely claiming that Liptrots Tax had an average monthly payroll of $43,369, and including as part of the application process, a fraudulent IRS Form 944, falsely claiming that Liptrots Tax paid $496,428 in wages and other compensation in 2020. As a result of this fraudulent second-draw PPP application, Liptrots Tax obtained approximately $108,422 in PPP loan proceeds from a different SBA approved PPP lender. 

    Liptrot is scheduled for sentencing on August 6, 2025, at 10:30 a.m., where he faces a possible maximum sentence of up to 20 years in prison.

    U.S. Attorney Hayden P. O’Byrne for the Southern District of Florida, acting Special Agent in Charge Brett D. Skiles of FBI Miami and Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region, announced the guilty plea.

    FBI Miami’s Area Corruption Task Force, which includes task force officers from the City of Miami Police Department’s Internal Affairs Section, and SBA-OIG investigated the case. Assistant U.S. Attorney Edward N. Stamm is prosecuting the case and Assistant U.S. Attorney Gabrielle Raemy Charest-Turken is handling asset forfeiture.

    In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (EIDLs) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred.  EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.

    On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

    On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.

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

    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 23-cr-20155.

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  • MIL-OSI Security: U.S. Attorney Charges Eastchester Man With Sexual Exploitation Of A Child And Receipt And Distribution Of Child Pornography

    Source: Office of United States Attorneys

    Jay Clayton, the United States Attorney for the Southern District of New York, announced today the arrest of THOMAS JAMES PUCCINI, 28.  PUCCINI is charged with the sexual exploitation of three minors and with receiving and distributing child pornography.  PUCCINI was arrested today and presented today before U.S. Magistrate Judge Judith C. McCarthy in White Plains federal court and detained.

    “Thomas James Puccini’s alleged crimes are every parent’s nightmare,” said U.S. Attorney Jay Clayton. “Puccini, a football coach, held himself out as a trusted member of his school community, yet he was preying on our most innocent and vulnerable. The women and men of the Southern District will use every tool available to bring to justice those who exploit our children.”

    HSI New York Acting Special Agent in Charge James Manning said: “As alleged, the defendant violated parents’ and students’ trust through his vile acts against children. A wolf in sheep’s clothing, he worked closely with kids and teenagers nearly every day, all allegedly while hiding his shameful dark side of exploitation, and committing crimes against the same minors placed under his care. The abhorrent crimes of which he is accused have no place in our society, and I commend HSI New York’s Hudson Valley investigators, alongside our law enforcement partners, for placing the safety of vulnerable New Yorkers above all else.”

    Westchester County District Attorney Susan Cacace said: “For months, our criminal investigators worked hard to build the strongest possible case against the defendant, and today’s federal charges are the product of these efforts. I extend my thanks to U.S. Attorney for the Southern District of New York Jay Clayton for his collaboration and partnership on this case. Our office will continue to assist S.D.N.Y. throughout all phases of Mr. Puccini’s prosecution.”

    As alleged in the Complaint filed on May 20, 2025 in White Plains federal court and statements made in court[1]:

    THOMAS JAMES PUCCINI worked as a football coach for a high school (“School-1”) in Westchester County. In July of 2024, PUCCINI became the interim athletic director for the school district in which the high school was located. 

    Victim-1:  In November 2021, Victim-1, who was 17 years old and a student at School-1, was contacted by a Snapchat account with the name “alex_fundi2.”  Victim-1 received a nude image of a female from “alex_fundi2” and believed that he was communicating with a female.  “She” told him that she knew him and went to School-1. Victim-1 sent “her” nude photos of himself, including photos showing his penis. After sending images for approximately a week or two, Victim-1 blocked the “alex_fundi2” account.  Then, Victim-1 received messages from a CashApp account (“CashTag-1”) directing Victim-1 to add “alex_fundi2” back. The messages stated, among other things, “I have your pics and vids,” and told Victim-1 to “add me or I send your pics.”  Victim-1 unblocked “alex_fundi2” and sent “alex_fundi2” sexually explicit images of Victim-1. 

    Victim-1 continued to send sexually explicit images to “alex_fundi2” until in or about 2023, when Victim-1 was a freshman in college. 

    The user of CashTag-1 provided CashApp with the name “Thomas Puccini,” PUCCINI’s date of birth, and PUCCINI’s address in Westchester. Records from Snapchat relating to the “alex_fundi2” account show that an IP address that returned to PUCCINI’s residence in Westchester County was used over 13,000 times to access the “alex_fundi2” account. Further, the “alex_fundi2” account is associated with an email that begins with “puccini01” and ends in “.edu.”

    Victim-2: Victim-2 and other middle-schoolers used School-1’s weight room to prepare for Junior Varsity football. PUCCINI supervised them in the weight room. Beginning when Victim-2 was 13 years old and in eighth grade, PUCCINI communicated with Victim-2 through Snapchat, using a Snapchat account with the user name, “tommytutts66,” and requested that Victim-2 take and send PUCCINI photos and videos of Victim-2’s penis.  PUCCINI also sent Victim-2 photos of his penis. PUCCINI specified exactly what he wanted Victim-2 to show him, and, based on his instructions, Victim-2, on numerous occasions, took and sent PUCCINI photos and videos showing various angles of Victim-2’s penis, showing Victim-2 masturbating, showing Victim-2 “finishing” (i.e., ejaculating) with the audio on, and showing Victim-2 laying with his semen on his chest. On numerous occasions, at PUCCINI’s request, PUCCINI and Victim-2 would “race” to see who could masturbate to ejaculation first. The winner would have to send a video or photo capturing the “finish.” 

    A search warrant executed at PUCCINI’s residence on November 1, 2024 resulted in the seizure of, among other things, PUCCINI’s desktop computer. The computer contained an iCloud backup with approximately 8000 messages to or from Victim-2 between January 2017 and December 2020.  In hundreds of these messages, PUCCINI referred to masturbating, to Victim-2’s penis, and/or requested that Victim-2 take and send him photos of his penis.

    Victim-3: Victim-3, who was 16 years old, and “alex_fundi2” communicated via Snapchat in 2023.  Victim-3 took and transmitted sexually explicit images to “alex_fundi2” in exchange for the promise of expensive gifts.  On January 10, 2023, at approximately 11:24 p.m., “alex_fundi2” told Victim-3, “If I send you for the jacket, I’m going to need you to send those 2 vids and then…. As many vids as I want and of anything that I want until Monday.”  At 11:25 p.m., Victim-3 responded, “monday” and “jesus” and “and as long as it doesn’t involve ass stuff.” Thereafter, Victim-3 transmitted numerous files to “alex_fundi2” containing sexually explicit images of Victim-3.

    Victim-4: Victim-4 and “alex_fundi2” communicated via Snapchat in 2023.  Victim-4 told “alex_fundi2” that he was 18 years old and “alex_fundi2” told Victim-4 that he was similarly aged.  “Alex_fundi2” asked Victim-4 for sexually explicit images of Victim-4 when he was 15 or 16.  On June 11, 2023, at approximately 1:50 p.m., Victim-4 transmitted a sexually explicit photo and a sexually explicit video of Victim-4 to “alex_fundi2.”  In both the photo and video, Victim-4 was 15. 

    In November 2024, PUCCINI was charged in Westchester County, New York with Grand Larceny in the Fourth Degree.

    On an occasion in February 2022, the “alex_fundi2” account engaged in a conversation with a user (“User-1”) on Snapchat and asked, “Can I give you a snapchat to add and you try to get pics/vids from the account?” User-1 told “alex_fundi2,” “Sure” and “I don’t mind being yo undercover bud.” Thereafter, “alex_fundi2” transmitted a Snapchat user name to User-1.  The Snapchat user name belonged to a student who had attended School-1 from 2015 to 2019.  PUCCINI’s desk top computer contained thousands of messages with that student from in or about August 2015 to September 2020. Many of the messages contained requests for sexually explicit images from the student.         

    PUCCINI changed the display name of the “alex_fundi2” account on multiple occasions and the various display names he used included, Young & Horny,” “Young NY Vers Bottom Horny,” “Zach,” “Alexandra Fundi,” “Alex Fundi,” “Horny Twink,” and “zach _parker0.”

    There may be more victims of this alleged conduct. If you have information to report or you had contact with the Snapchat accounts, “alex_fundi2,” “tommytuts66,” or any of the display names described above contact Homeland Security Investigations through its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.  Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199.  Hearing-impaired users can call TTY 802-872-6196.

    *                *                *

    PUCCINI, 28, of Eastchester, New York is charged in Counts One, Two and Three with sexual exploitation of a minor. Counts One, Two and Three each carry a maximum sentence of thirty years’ imprisonment and a mandatory minimum of fifteen years’ imprisonment. Count Four carries a maximum of twenty years’ imprisonment and a mandatory minimum of five years. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. 

    Mr. Clayton praised the efforts of Homeland Security Investigations, the Westchester County District Attorney’s Office, the Westchester County Police Department, the Eastchester Police Department, the Rockland Police Department, the Lake Forest Police Department, and the Cullman County Sheriff’s Office. 

    The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Marcia S. Cohen is in charge of the prosecution.   

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

    MIL Security OSI –

  • MIL-OSI Security: Former Defense Contractor Pleads Guilty to Tax Crimes

    Source: Office of United States Attorneys

    Defendant Admits to Concealing 50% Ownership of $7B Defense Contracting Business to Evade Taxes

               WASHINGTON – Douglas Edelman, 73, a former defense contractor, pleaded guilty today to tax crimes related to a scheme to defraud the United States and evade taxes on income he earned from his contracts with the U.S. Department of Defense.

               The sentence was announced U.S. Attorney Jeanine Ferris Pirro, Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and Special Agent in Charge Kareem A. Carter with IRS-Criminal Investigation (IRS-CI) Washington, D.C. Field Office. 

               Edelman pleaded guilty to 10 felony counts: conspiracy to defraud the United States, seven counts of tax evasion, and two counts of making a false statement.  U.S. District Court Judge Colleen Kollar-Kotelly scheduled a hearing on issues related to sentencing on Nov. 17, 2026. Trial on the remaining counts of the indictment will be in 2026.

               According to court documents and statements made in court, Edelman founded and owned 50% of Mina Corp. and Red Star Enterprises (Mina/Red Star), a defense contracting business that received more than $7 billion from contracts with the U.S. Department of Defense to provide jet fuel in the United States’ post-9/11 military efforts in Afghanistan and the Middle East. 

               Working with others, Edelman engaged in a lengthy scheme to hide his Mina/Red Star profits to evade U.S. taxes, including by concealing his income in undisclosed foreign bank accounts, creating false documents and making false statements that one of his co-conspirators — a French citizen residing abroad and without U.S. tax obligations — founded and owned Mina/Red Star. 

               For example, when the company became profitable in 2005, Edelman began taking distributions which he deposited into Swiss bank accounts, primarily at Credit Suisse, in the name of other companies he owned. In 2008, Credit Suisse informed Edelman that he had to either close his accounts or disclose them to U.S. authorities. Rather than come into compliance with his tax and reporting obligations, Edelman closed his accounts and opened new ones at Bank Julius Baer in Singapore in the name of a nominee entity, the beneficiaries of which were purportedly Edelman’s daughters. He then directed the subject income he earned from Mina/Red Star to those bank accounts. 

               In 2010 the U.S. House of Representatives Committee on Oversight and Government Reform’s Subcommittee on National Security and Foreign Affairs began investigating allegations of corruption in connection with Mina/Red Star’s contracts with the Department of Defense. As part of this inquiry, the subcommittee became interested in the identity of Mina/Red Star’s owners. At this time, Edelman had not filed U.S. tax returns to report the millions of dollars he had earned from Mina/Red Star and had not paid U.S. taxes on his income. 

               Rather than disclose his ownership, Edelman caused his attorneys to tell Congress a false story that a French co-conspirator who had no U.S. tax or reporting obligations founded and co-owed Mina/Red Star with another individual. To corroborate the false story, Edelman and a co-conspirator caused false and backdated paperwork to be created. 

               To continue the scheme, Edelman conveyed the false story about Mina/Red Star’s ownership to other arms of the U.S. government, including to the Department of Defense during contract negotiations in 2010 and 2011, to the IRS in a 2016 application to the Offshore Voluntary Disclosure Program, and to the Justice Department in a 2018 presentation. 

               In conjunction with his 2016 application to the IRS’s Voluntary Disclosure Program, Edelman filed false tax returns for several prior years that only reported income from gifts or purported consulting payments, continuing to conceal the millions he had earned from his company. On the returns, he also concealed profits he had earned from a separate business to provide internet service to members of the armed forces at Kandahar Air Base in Afghanistan. 

               Instead of paying the taxes that he knew he owed, Edelman used the money to fund his lifestyle and additional investments. He invested in a music television franchise in Eastern Europe, a land venture in Tulum, Mexico, and a farm in Kenya, and purchased property around Europe, including a home in Ibiza, Spain, and a townhouse in London.

               Edelman faces a maximum penalty of five years in prison for each of the 10 counts to which he has pleaded. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

               This case is being investigated by special agents from IRS-CI’s International Tax & Financial Crimes specialty group, a team based out of Washington, D.C., that is dedicated to uncovering international tax crimes, along with the Special Inspector General for Afghanistan Reconstruction. The Justice Department’s Office of International Affairs assisted in the investigation. His Majesty’s Revenue & Customs of the United Kingdom also provided assistance, as did the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, the Netherlands, the United Kingdom, and the United States. The Guardia Civil of Spain assisted with the arrest. 

               This case is being prosecuted by Assistant U.S. Attorney Joshua Gold for the District of Columbia and Assistant Chief Sarah Ranney and Trial Attorney Ezra Spiro of the Tax Division.

    24cr239

    MIL Security OSI –

  • MIL-OSI Security: Student Pilot in Highway 76 Emergency Plane Landing Sentenced to 30 Months for Drug Trafficking

    Source: Office of United States Attorneys

    SAN DIEGO – Troy Othneil Smith, a student pilot whose drug trafficking activity was discovered when his plane was forced to make an emergency landing on State Route 76 in Oceanside last fall, was sentenced in federal court today to 30 months in prison.

    Smith pleaded guilty in January to two counts of possession of cocaine with intent to distribute – one count in connection with the emergency landing that occurred around 1:39 a.m. on September 26, 2024 and his attempt to hide a package of cocaine from responding officers; and the other in connection with Smith’s mailing of cocaine through the United States Postal Service in 2023.

    In his plea agreement, Smith also admitted to relevant conduct discovered during the course of the investigation of at least two other occasions wherein Smith mailed cocaine through the U.S. Postal Service.

    “Aviation privileges come with immense responsibility,” said U.S. Attorney Adam Gordon. “When those privileges are abused to facilitate drug trafficking, it undermines public safety and the trust placed in those who operate in our skies. We remain committed to working with our partners to detect, disrupt, and prosecute this kind of criminal activity wherever it occurs.”

    This case is being prosecuted by Assistant U.S. Attorneys Lyndzie M. Carter and Joseph Orabona.

    DEFENDANT                                               Case Number 24-MJ-03788                                     

    Troy Othneil Smith                                         Age: 36                                   Oceanside, CA

    SUMMARY OF CHARGES

    Possession of Cocaine with the Intent to Distribute– Title 21, U.S.C., Section 841(a)(1)

    Maximum penalty: Twenty years in prison and $1 million fine

    INVESTIGATING AGENCIES

    Drug Enforcement Administration

    United States Postal Inspectors

    San Diego Field Division Narcotics Task Force Team 6

    North County Narcotics Task Force

    Oceanside Police Department

    MIL Security OSI –

  • MIL-OSI Security: Texas Doctor Who Falsely Diagnosed Patients Sentenced to 10 Years’ Imprisonment in Connection with $118M in Fraudulent Health Care Claims

    Source: Office of United States Attorneys

    A Texas rheumatologist was sentenced to 10 years in prison and three years of supervised release for perpetrating a health care fraud scheme involving over $118 million in false claims and the payment of over $28 million by insurers as a result of him falsely diagnosing patients with chronic illnesses to bill for tests and treatments that the patients did not need. Jorge Zamora-Quezada M.D., 68, of Mission, also falsified patient records to support the false diagnoses after receiving a federal grand jury subpoena. Following a 25-day trial, Zamora-Quezada was convicted of one count of conspiracy to commit health care fraud, seven counts of health care fraud, and one count of conspiracy to obstruct justice. In addition to his prison term, Zamora-Quezada was ordered to forfeit $28,245,454, including 13 real estate properties, a jet, and a Maserati GranTurismo.

    According to the evidence presented at trial, Zamora-Quezada falsely diagnosed his patients with rheumatoid arthritis and administered toxic medications in order to defraud Medicare, Medicaid, TRICARE, and Blue Cross Blue Shield. The fraudulent diagnoses made the defendant’s patients believe that they had a life-long, incurable condition that required regular treatment at his offices. After falsely diagnosing his patients, Zamora-Quezada administered unnecessary treatments and ordered unnecessary testing on them, including a variety of injections, infusions, x-rays, MRIs, and other procedures—all with potentially harmful and even deadly side effects. To receive payment for these expensive services, Zamora-Quezada fabricated medical records and lied about the patients’ condition to insurers.

    “Dr. Zamora-Quezada funded his luxurious lifestyle for two decades by traumatizing his patients, abusing his employees, lying to insurers, and stealing taxpayer money,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “His depraved conduct represents a profound betrayal of trust toward vulnerable patients who depend on care and integrity from their doctors. Today’s sentence is not just a punishment—it’s a warning. Medical professionals who harm Americans for personal enrichment will be aggressively pursued and held accountable to protect our citizens and the public fisc.”

    “Through the false diagnoses and excessive false billing, Dr. Zamora-Quezada abused both patient trust and public resources,” said Special Agent in Charge Jason E. Meadows of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “It is imperative to investigate and address this form of fraud — not only to protect vulnerable individuals from harm but to uphold the integrity of the federal health care system and safeguard the use of public funds.”

    “The FBI is dedicated to working with all of our partners to address health care fraud,” said Special Agent in Charge Aaron Tapp of the FBI’s San Antonio Field Office. “This case was not only a concern to us because of the financial loss — the physical and emotional harm suffered by the patients and their families was alarming and profound. We hope this significant sentence will help bring closure to the many victims in this case.”

    Evidence at trial established that Dr. Zamora-Quezada falsely diagnosed patients in order to defraud insurers and enrich himself. Other rheumatologists in the Rio Grande Valley testified at trial that they saw hundreds of patients previously diagnosed with rheumatoid arthritis by Zamora-Quezada who did not have the condition, prompting one physician to explain that for “most” it was “obvious that the patient did not have rheumatoid arthritis.” Zamora-Quezada’s false diagnoses and powerful medications caused debilitating side effects on his patients, including strokes, necrosis of the jawbone, hair loss, liver damage, and pain so severe that basic tasks of everyday life, such as bathing, cooking, and driving, became difficult. As one patient testified, “Constantly being in bed and being unable to get up from bed alone, and being pumped with medication, I didn’t feel like my life had any meaning.” One mother described how she felt that her child served as a “lab rat,” and others described abandoning plans for college or feeling like they were “living a life in the body of an elderly person.”

    Former employees detailed how Zamora-Quezada imposed strict quotas for procedures, leading to a climate of fear. Zamora-Quezada referred to himself as the “eminencia” — or eminence, threw a paperweight at an employee who failed to generate enough unnecessary procedures, hired employees he could manipulate because they were on J-1 visas and their immigration status could be jeopardized if they lost their jobs, and fired those who challenged him. Testimony also revealed Zamora-Quezada’s obstruction of insurer audits by fabricating missing patient files, including by taking ultrasounds of employees and using those images as documentation in the patient records. Testimony at trial established that Zamora-Quezada told employees to “aparecer” the missing records — “to make them appear.” Former employees also recounted being sent to a dilapidated barn to attempt to retrieve records. There, files were saturated with feces and urine, rodents, and termites that infested not only the records but also the structure.

    Zamora-Quezada’s patient file storage facility

    Zamora-Quezada used proceeds from his crimes to fund a lavish lifestyle, replete with real estate properties across the country and in Mexico, a jet, and a Maserati.

    One of Zamora-Quezada’s luxury properties

    Zamora-Quezada’s jet

    FBI, HHS-OIG, Texas HHS-OIG, and the Texas Medicaid Fraud Control Unit investigated the case, with assistance from the Defense Criminal Investigative Service.

    Principal Assistant Chief Jacob Foster and Assistant Chiefs Rebecca Yuan and Emily Gurskis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura Garcia for the Southern District of Texas prosecuted the case. Assistant U.S. Attorney Kristine Rollinson handled asset forfeiture. Fraud Section Assistant Chief Kevin Lowell initially handled the prosecution. The prosecution team thanks the Fraud Section’s Data Analytics Team, whose work initiated the investigation, Victim Witness Specialist Olga De La Rosa of the U.S. Attorney’s Office for the Southern District of Texas, and the Texas Department of Insurance.

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

    MIL Security OSI –

  • MIL-OSI Security: Houston Pharmacy Owner Sentenced to 19 Years in Prison for Illegal Distribution of Opioids and Tax Fraud

    Source: United States Attorneys General 7

    A Texas man was sentenced on Monday to 19 years in prison for unlawfully conspiring to distribute millions of opioid pills and aiding the falsification of tax records. 

    According to court documents, Christopher Obaze, 64, of Houston, Texas, was the owner and pharmacist-in-charge of Chrisco Pharmacy. Obaze and his co-conspirators operated Chrisco Pharmacy as an illegal “ghosting pharmacy,” purchasing pharmaceutical opioids and other commonly abused prescription drugs from wholesalers and then selling them in bulk to drug traffickers, without involving physicians, patients, or prescriptions. From January 2018 through October 2021, Obaze and his co-conspirators distributed at least 2,268,700 hydrocodone 10-325 mg and oxycodone 30 mg pills as part of the scheme. 

    The defendant and his pharmacy technician attempted to conceal their illegal activities by reporting no dispensing of the drugs to the Texas State Board of Pharmacy’s prescription monitoring program after July 2018, and by structuring cash deposits and submitting false documents to banks to maintain accounts to hold the proceeds of their unlawful distribution scheme. Obaze also aided and assisted in the preparation and presentation of false and fraudulent tax returns to the IRS by understating, among other things, the gross receipts of Chrisco Pharmacy. 

    Matthew R. Galeotti, Head of the Justice Department’s Criminal Division, U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas, Special Agent in Charge William Kimbell of the Drug Enforcement Administration (DEA) Houston Division, and Special Agent in Charge Lucy Tan of the IRS Criminal Investigation (IRS-CI) Houston Field Office made the announcement. 

    The DEA and IRS-CI investigated the case. 

    Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section prosecuted the case. 

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal/criminal-fraud/health-care-fraud-unit.

    MIL Security OSI –

  • MIL-OSI USA: Congressman Danny K. Davis Applauds Reintroduction of Second Chance Reauthorization Act of 2025

    Source: United States House of Representatives – Congressman Danny K Davis (7th District of Illinois)

    Legislation Continues a Legacy of Justice Reform and Community Investment Originating from Davis’ Landmark 2008 Law

    Legislation Continues a Legacy of Justice Reform and Community Investment Originating from Davis’ Landmark 2008 Law

         Washington, DC — Today, Congressman Danny K. Davis (D-IL), original author of the Second Chance Act of 2008, proudly announced the reintroduction of the Second Chance Reauthorization Act of 2025, a bipartisan, bicameral effort to bolster reentry services across the nation. Introduced in the U.S. House by Rep. Davis and Rep. Carol Miller (R-WV) and in the Senate by Sens. Shelley Moore Capito (R-WV) and Cory Booker (D-NJ), the legislation renews vital programs that support returning citizens with housing, career development, and behavioral health services.

         “Sixteen years ago, I introduced the Second Chance Act because I believed every person deserves an opportunity to reclaim their life, reunite with their family, and rebuild their future,” said Congressman Danny K. Davis. “Since then, over 442,000 individuals across America have benefited from these services, including thousands here in Chicago. Reentry is not a privilege. It is a right backed by resources, dignity, and support.”

         With more than 600,000 individuals returning home from prison each year, and many more transitioning from local jails, reentry has become a national priority for reducing recidivism and promoting public safety. The Second Chance Act of 2008, authored by Congressman Davis and signed into law by President George W. Bush, established the nation’s first coordinated federal effort to fund reentry programs. 

         In Chicago and across Illinois’ 7th Congressional District, Second Chance funding has supported a wide array of community organizations and justice-focused initiatives, including workforce training programs, mentoring services, transitional housing, and behavioral health treatment. These services are particularly critical for Black and Brown communities that have long borne the brunt of mass incarceration.

         “This bill is about investing in people and giving communities—like those I represent in  Chicagoland—the resources to reduce crime, restore families, and rewrite futures,” Davis added. “This is bipartisan work at its best—and it’s deeply rooted in both justice and compassion.”

         From 2009 to 2024, over 1,300 Second Chance grants were awarded across 49 states and territories, supporting 871 agencies nationwide. The reauthorization will strengthen evidence-based programs and expand services for individuals struggling with substance use disorder and mental health challenges.

                  The American Jail Association, American Parole and Probation Association, Correctional Leaders Association, Council of State Governments Justice Center, Major County Sheriffs of America, National Alliance on Mental Illness, National Association of Counties, National Association of State Alcohol and Drug Abuse Directors, National Association of State Mental Health Program Directors, National District Attorneys Association, National League of Cities, Prison Fellowship, Treatment Alternatives for Safe Communities, and U.S. Chamber of Commerce support the legislation.

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    MIL OSI USA News –

  • MIL-OSI USA: Duckworth, Durbin Demand Answers on Access to Care for Illinoisans After Prime Healthcare Reduces Services Following Acquisitions of Eight Hospitals

    US Senate News:

    Source: United States Senator for Illinois Tammy Duckworth
    May 20, 2025
    In their letter to Prime Healthcare, the Senators demand answers on the justification, process, & impact of Prime’s decision to cut pediatric, trauma, and maternal health care services in several newly-acquired hospitals
    [WASHINGTON, D.C.] – U.S. Senator Tammy Duckworth (D-IL) and U.S. Senate Democratic Whip Dick Durbin (D-IL), today sent a letter to the CEO of Prime Healthcare, Dr. Prem Reddy, about the company’s recent acquisition of eight Illinois hospitals that were formerly owned by Ascension.  Since acquiring these hospitals in March 2025, Prime has suspended or terminated pediatric, trauma, and maternal care services at some of the locations, creating even more barriers for Illinoisans to access health care.  These hospitals, now owned by Prime, a for-profit hospital system operating 51 hospitals across 14 states, provide health care to Illinoisans who rely on federal health programs, and several of these locations serve a population in which more than two-thirds of inpatients are covered by Medicaid or Medicare.
    Despite commitments by Prime to “not make any material reductions to, or material changes in, the mix or level of services offered at any Hospital… to meet community needs,” pediatric services have been terminated at St. John’s Medical Center in Joliet; there has been a withdrawal of the Level II trauma designation at Mercy Medical Center in Aurora; and the comprehensive obstetric and maternal care services at St. Mary’s in Kankakee has been terminated.
    “We sincerely urge your health system to immediately reconsider these decisions, as the consequences of these reductions hold the potential to strip patients of critical and specialized care, impose additional barriers to accessing care, and exacerbate the existing health care needs in the communities these hospitals serve,” the Senators wrote.
    Duckworth and Durbin continue their letter, emphasizing that when a hospital measures success by profit margins rather than its ability to provide care, patients and communities suffer.
    “Hospitals often measure their success by the patients they save and the ability to improve health in their surrounding neighborhoods.  However, as the grip of for-profit hospital systems tightens across our nation’s health care networks, profitability has risen as a primary indicator of success for hospital owners,” the lawmakers wrote.
    “When operations are centered around a hospital’s ability to generate as much profit as possible, it often comes at the expense of patients, staff, and the quality and safety of care.  As a result, hospital staffing levels diminish and costs for services increase, adding to the existing strain on hospitals to provide high standards of care,” the Senators continued their letter.
    As Duckworth and Durbin note, Prime has a history of prioritizing profit over patient care, resulting in two major settlements with the Department of Justice to resolve alleged violations of the False Claims Act relating to Medicare kickbacks and up-coding.
    The lawmakers closed their letter by expressing their concern that Illinoisans are losing access to quality health care.  Because of those concerns, the Senators requested additional information from Prime about operations at each of the hospitals, particularly around decisions to shut down pediatric, trauma, and maternal health care services.
    “Prime Healthcare has only operated these eight Illinois hospitals for two months, and there are already profound concerns about patients losing access to care.  Given the impact these decisions will have on Illinois patients, hospitals, and the health care workforce, we request answers to [our] questions by June 10, 2025,” the lawmakers wrote.
    The eight hospitals acquired by Prime Healthcare are Ascension Holy Family (Des Plaines), Ascension Mercy (Aurora), Ascension Resurrection (Chicago), Ascension Saint Francis (Evanston), Ascension Saint Joseph (Joliet), Ascension Saint Joseph (Elgin), Ascension Saint Mary (Kankakee), and Ascension Saint Mary and Saint Elizabeth (Chicago). 
    A copy of the letter is available here and below:
    May 20, 2025
    Dear Dr. Reddy:
    We write to express our concern regarding recent decisions that may limit access to essential health care services for patients across Illinois.  Earlier this year, your for-profit health system, Prime Healthcare, acquired several former Ascension hospitals in Illinois.  These hospitals provide health care to beneficiaries of federal health programs, with several Prime Healthcare hospitals serving a population in which more than two-thirds of inpatients have Medicare or Medicaid health coverage.
    In March 2025, Prime Healthcare completed the acquisition of Ascension Holy Family (Des Plaines), Ascension Mercy (Aurora), Ascension Resurrection (Chicago), Ascension Saint Francis (Evanston), Ascension Saint Joseph (Joliet), Ascension Saint Joseph (Elgin), Ascension Saint Mary (Kankakee), and Ascension Saint Mary and Saint Elizabeth (Chicago).  As part of Prime’s approval by the Illinois Health Facilities & Review Board for the change in ownership, Prime committed to, among other provisions, “not make any material reductions to, or material changes in, the mix or level of services offered at any Hospital … to meet community needs.”  Prime further stated, “No changes to the scope of services or the levels of care provided at the facility are currently anticipated to occur within 24 months.”  Unfortunately, the decisions that have followed since have led to the discontinuation of several critical health care services.
    We are particularly concerned about the suspension of pediatric services at St. John’s Medical Center in Joliet, the withdrawal of the Level II trauma designation at Mercy Medical Center in Aurora, and the recent termination of comprehensive obstetric and maternal care services at St. Mary’s in Kankakee.  We sincerely urge your health system to immediately reconsider these decisions, as the consequences of these reductions hold the potential to strip patients of critical and specialized care, impose additional barriers to accessing care, and exacerbate the existing health care needs in the communities these hospitals serve.
    Hospitals often measure their success by the patients they save and the ability to improve health in their surrounding neighborhoods.  However, as the grip of for-profit hospital systems tightens across our nation’s health care networks, profitability has risen as a primary indicator of success for hospital owners.  When operations are centered around a hospital’s ability to generate as much profit as possible, it often comes at the expense of patients, staff, and the quality and safety of care.  As a result, hospital staffing levels diminish and costs for services increase, adding to the existing strain on hospitals to provide high standards of care.  Indeed, Prime Healthcare already has been the subject of several federal enforcement actions, including separate settlements in 2018 and 2021 totaling $100 million to resolve alleged False Claims Act violations for Medicare kickbacks and up-coding.
    Prime Healthcare has only operated these eight Illinois hospitals for two months, and there are already profound concerns about patients losing access to care.  Given the impact these decisions will have on Illinois patients, hospitals, and the health care workforce, we request answers to the following questions by June 10, 2025: 
    What considerations were taken prior to eliminating pediatric services at St. John’s Medical Center, as well as shrinking obstetric and maternal care services at St. Mary’s?
    For each hospital’s service line referenced above, what was the average daily census or patient count each week over the past year?
    How far back does the data, pertaining to average daily census or patient counts each week, that Prime has access to go?
    Prior to deciding to eliminate pediatric services, did Prime formally engage with neighboring hospitals or the Illinois Health Facilities & Services Review Board about the adequacy of nearby capacity to serve these patient’s needs?  If so, please describe and share such documentation with the feedback provided by each entity.

    How does Prime Healthcare plan to compensate for the loss of these essential health services and ensure that these communities continue to have access to specialized treatment and maternal care?
    Following the revocation of Mercy Medical Center’s Level II trauma designation, how will the hospital’s emergency readiness be impacted?  How will the hospital address the need for trauma care within the community?
    What projections does Prime have for the impact on ambulance service times for patients now being diverted from Mercy to another hospital?  Have there been any efforts to engage with the Illinois Department of Public Health regarding the potential reversal of this revocation?  If so, please describe in detail.

    You previously made a commitment not to change “the scope of services or the levels of care…within 24 months.”  What circumstances have shifted since the acquisition to justify a different course of action? 
    How many health care providers and personnel have been or will be terminated as a result of these closures?  How will this impact patient wait times and their ability to continue their plan of care with a provider?
    How much does Prime Healthcare anticipate saving financially as a result of these recent closures? 
    Does Prime Healthcare have future plans to shut down or reduce additional health facilities or services in Illinois?  If so, please describe in detail.
    Thank you for your attention to this important matter.  We look forward to your prompt reply.
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