NewzIntel.com

Category: Justice

  • MIL-OSI USA: Jamaican Citizen Sentenced to Prison in Connection with Lottery Scheme

    Source: US State Government of Utah

    A federal judge in Charlotte, North Carolina, sentenced a Jamaican citizen yesterday to prison for operating a Jamaica-based fraudulent lottery scheme.

    Antony Linton Stewart, 40, pleaded guilty on Aug. 3, 2023, to one count of conspiracy to commit mail and wire fraud, in the Western District of North Carolina.  On Jan. 27, U.S. District Court Judge Robert J. Conrad sentenced Stewart to 84 months in prison. Stewart was also ordered to pay $1,104,041.74 in restitution.

    According to court documents, and as part of his plea, Stewart acknowledged that from approximately 2010 through at least August 2016, he led a fraudulent lottery fraud scheme in which he and his co-conspirators targeted victims in the United States. Stewart admitted that he contacted elderly Americans by phone and falsely told them that they had won money and other prizes in a sweepstakes or lottery.  Stewart told victims that they needed to send money to pay fees and taxes on their winnings.  He repeatedly contacted victims for as long as they could be persuaded to send additional money. No lottery existed and no victim ever received any winnings.

    “Overseas lottery schemes are unfortunately a common means by which foreign criminals seek to target U.S. citizens, particularly elder Americans,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Such schemes are unacceptable, and the Department will hold accountable those who participate in them.”

    “Stealing money from elderly individuals is a despicable crime,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s sentence sends a clear message that fraudsters who target and exploit older adults for financial gain will be brought to justice.”

    This prosecution is part of the Justice Department’s effort to work with federal and foreign law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens.

    The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart. The U.S. Marshals Service also provided significant assistance.

    Trial Attorney Ryan E. Norman of the Justice Department’s Consumer Protection Branch prosecuted the case, with the assistance of Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina.

    If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.

    For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit their website at www.justice.gov/usao-wdnc. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

    MIL OSI USA News –

  • MIL-OSI Security: Charles City Man Sentenced to Federal Prison for Possession of Methamphetamine

    Source: Office of United States Attorneys

    A man who possessed meth with intent to distribute it was sentenced today to more than 7 years in federal prison.

    Jeremy Thomas Scott, age 46, from Charles City, Iowa, received the prison term after an October 17, 2024, guilty plea to one count of possession with intent to distribute 500 grams of methamphetamine.  

    At the guilty plea, Scott admitted that he was a passenger in a van that was stopped by law enforcement on I-35 on June 6, 2024, in Cerro Gordo County.  Law enforcement had received a tip that Scott was traveling to Iowa from California with multiple pounds of methamphetamine. 

    A K-9 was deployed around the van and provided a positive alert. Scott admitted to having a methamphetamine pipe in the door of the van where he was seated and claimed everything in the van was his.  A search of the van by the ISP troopers found approximately 4 pounds of methamphetamine seized from inside a Rice Krispies box.  

    Scott was sentenced in Sioux City by United States District Court Judge Leonard T. Strand.  Scott was sentenced to 90 months’ imprisonment.  He must also serve a 4-year term of supervised release after the prison term.  There is no parole in the federal system.

    Scott is being held in the United States Marshal’s custody until he can be transported to a federal prison.

    The case was prosecuted by Assistant United States Attorney Kevin Fletcher and was investigated by the Cerro Gordo County Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the Iowa State Patrol.  

    Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.

    The case file number is 24-CR03031.

    Follow us on X @USAO_NDIA.

    MIL Security OSI –

  • MIL-OSI Security: Former Tufts Medical Center Doctor Sentenced to a Decade in Prison for Attempted Sex Trafficking of a Child

    Source: United States Department of Justice (Human Trafficking)

    BOSTON – A former anesthesiologist at Tufts Medical Center in Boston was sentenced today for attempted sex trafficking of a child.

    Sadeq Ali Quraishi, 47, was sentenced by U.S. District Court Judge Angel Kelley to 10 years in prison, to be followed by five years of supervised release. In October 2024, Quraishi was convicted of one count of attempted sex trafficking of a child.

    “Today’s sentence reflects the seriousness of Mr. Quraishi’s heinous actions and underscores our unwavering commitment to protecting children from exploitation. Our office, alongside our law enforcement partners, will continue to aggressively pursue individuals who fuel the market for child sex trafficking and hold them accountable for their crimes. This sentence reflects our dedication to identifying those who prey on our most vulnerable and holding them accountable for their inhumane acts,” said United States Attorney Leah B. Foley.

    “As a doctor, Quraishi was in a position of public trust. He abused that trust when he actively sought out and agreed to pay to sexually abuse a child. Fortunately, instead of the vulnerable child he planned to meet, he was met with an undercover HSI special agent,” said Special Agent in Charge Michael J. Krol for Homeland Security Investigations in New England. “It is a heartbreaking truth that children are trafficked every day, but HSI remains steadfast in our commitment to fight the exploitation of children here in Massachusetts and around the world.”

    In November 2022, law enforcement conducted an undercover operation designed to identify and apprehend people who sought to pay for sex with children. To that end, law enforcement placed advertisements online offering commercial sex with two young girls who were purportedly 12 and 14 years old.

    Quraishi, then a practicing anesthesiologist at Tufts Medical Center, responded to one of the advertisements. Through an ensuing text conversation with undercover agents posing as the seller of the two girls, Quraishi agreed to pay $250 for a sex act to be performed by a 14-year-old girl. Shortly thereafter, Quraishi obtained cash from an ATM, and drove from his Boston home to a Waltham hotel to meet with the purported seller. Once at the hotel, he met with an undercover agent, confirmed he had the money to pay for the commercial sex act, and accepted a keycard he believed would give him access to the room where the 14-year-old girl would be. During that meeting, Quraishi was arrested and found to be in possession of exactly $250.

    If you or someone you know may be impacted or experiencing commercial sex trafficking, please contact USAMA.VictimAssistance@usdoj.gov.

    U.S. Attorney Foley and HSI SAC Krol made the announcement today. Assistant U.S. Attorneys Brian A. Fogerty of the Human Trafficking & Civil Rights Unit and Lauren A. Graber of Criminal Division prosecuted the case. 

    MIL Security OSI –

  • MIL-OSI Security: Marshall County Man Sentenced for Role in a Drug Trafficking Conspiracy

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

    WHEELING, WEST VIRGINIA – KC Vanover, age 48, of Moundsville, West Virginia, was sentenced to 63 months in federal prison for his role in a drug trafficking operation.

    According to court documents and statements made in court, Vanover was working with others to sell hundreds of grams of methamphetamine in Marshall County and elsewhere. The organization’s source of supply was in Georgia. Vanover has prior convictions for grand larceny and battery.

    Vanover will serve three years of supervised release following his prison sentence.

    Assistant U.S. Attorney Clayton Reid prosecuted the case on behalf of the government.

    Investigative agencies include the Drug Enforcement Administration-Wheeling; the Drug Enforcement Administration-Clarksburg; the Drug Enforcement Administration-Cleveland; the Drug Enforcement Administration-Detroit; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the West Virginia State Police; the West Virginia State Parole; the Ohio Valley Drug Task Force, a HIDTA-funded initiative; the Marshall County Sheriff’s Department; the Moundsville Police Department; the Marshall County Prosecutors Office; the Wheeling Police Department; the Wetzel County Sheriff’s Department; the Guernsey County Sheriff’s Office (Ohio); the Belmont County Drug Task Force (Ohio); the Ohio County Sheriff’s Department; the Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Benwood Police Department; and the Monroe County Sheriff’s Office (Ohio).         

    U.S. District Judge John Preston Bailey presided.

    MIL Security OSI –

  • MIL-OSI Security: Washington man admits illegal possession of firearms after being removed from Amtrak train in Montana

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

    MISSOULA —A Washington man with a bank robbery conviction admitted today to illegally possessing firearms after law enforcement removed him from an Amtrak train in Libby and found him in possession of multiple guns, U.S. Attorney Jesse Laslovich said.

    The defendant, Mallory Nehemiah Brown, 43, of Auburn, Washington, pleaded guilty to prohibited person in possession of a firearm. Brown faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release.

    U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for May 29 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Brown was detained pending further proceedings.

    The government alleged in court documents that in 2004, Brown was convicted of bank robbery in federal district court in California and prohibited from possessing a firearm or ammunition. On Jan. 8, 2024, Brown boarded an Amtrak train in Seattle, Washington, with a black duffel bag and several long boxes. Brown placed his bags and boxes on the luggage rack. The train was bound for Washington, D.C., with a stop in Chicago, Illinois. On Jan. 9, 2024, the train stopped in Libby based on a complaint by other passengers about Brown. Law enforcement removed Brown from the train. The train conductor located Brown’s bags. Inside, he discovered four firearms, ammunition, magazines, a suppressor, eight firearms receivers, night vision goggles, a tactical vest and other assorted accessories. The four firearms were identified as a .22LR HV rifle, which had a serial number; a 12-gauge pump shotgun with an obliterated serial number; a 12-gauge semi-auto shot gun with no visible serial number; and a 9mm semi-auto pistol with no visible serial number. Brown denied the bags belonged to him, however, several Amtrak employees identified Brown as the person who loaded the bags on the train. One of the boxes had a shipping label on it addressed to “Mallory Brown.”

    The U.S. Attorney’s Office is prosecuting the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Libby Police Department, Lincoln County Sheriff’s Office, FBI and Montana Probation and Parole conducted the investigation.

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

    MIL Security OSI –

  • MIL-OSI Security: Man Admits Transporting Minor to Super Bowl, St. Louis for Prostitution

    Source: Office of United States Attorneys

    ST. LOUIS – A Missouri man pleaded guilty Tuesday and admitted transporting a minor across state lines for sex.

    JoeMarius Green, 24, pleaded guilty in U.S. District Court in St. Louis to one felony count of transporting a minor across state lines to engage in prostitution. Green’s co-defendant, Chantel Robinson, 20, pleaded guilty in November to one felony count of possession of child pornography.

    Green admitted as part of his plea that he took a female minor and others from Dallas to Kansas City on Feb. 12, 2023, to engage in prostitution during the Super Bowl. After about four days, Green took the victim and others to a St. Louis area hotel for the same reason. Green admitted managing the online prostitution ads, renting hotel rooms, setting price points for sex acts and taking all cash proceeds from the victim’s commercial sex acts.

    Robinson admitted engaging in commercial sex acts, taking sexually explicit and sexually suggestive photos of minors and posting online advertisements for commercial sex acts. She oversaw the prostitution activities of minors when Green was absent.

    Green is scheduled to be sentenced on June 25. The charge carries a penalty of 10 years to life in prison. Robinson is scheduled to be sentenced April 8. Her charge carries a penalty of up to 20 years in prison.

    The St. Louis County Police Department and the FBI investigated the case.  Assistant U.S. Attorney Dianna Edwards is prosecuting the case.

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

    MIL Security OSI –

  • MIL-OSI Security: U.S. Marshals Fugitive Task Force Apprehends 2 Suspects Connected to Deadly Shooting in Austin

    Source: US Marshals Service

    Austin, TX – Members of the U.S. Marshals-led Lone Star Fugitive Task Force today arrested a juvenile* who is one of two suspects sought for a Jan. 24 murder in Austin. 

    Another suspect, Bill Tarlue Nyanway, 18, of Austin, was arrested Jan. 27 and charged with tampering with physical evidence that stemmed from the shooting incident. 

    The Austin Police Department, Homicide Division investigated the shooting incident in the 10200 block of Wildhorse Ranch Trail and obtained arrest warrants in the Austin Municipal Court Jan. 27 for the two individuals believed to be connected to the deadly shooting incident. 

    When Austin Police, Fire and Travis County Emergency Medical Services responded to the location, they discovered a white sedan which had been reported crashed in a ditch near Manor Excel Academy, and a victim had been shot. They attempted life-saving measures on the victim, who was ultimately pronounced deceased on scene. 

    The Austin Police Department requested assistance from the Lone Star Fugitive Task Force in the Austin Division to locate and apprehend both suspects.

    Members of the Lone Star Fugitive Task Force initiated a fugitive investigation and arrested Nyanway in the 9400 block of North Lamar Blvd without incident, booking him into the Travis County Jail where he will await further judicial proceedings. 

    The juvenile was arrested without incident in the 14500 block of Heartland Drive in Manor and was transported to the Austin Police Headquarters.

    Members of the Lone Star Fugitive Task Force in Austin – 

    Austin Police Department-Tactical Intelligence Unit
    Georgetown, Round Rock, and San Marcos Police Department
    Caldwell, Hays, Travis, and Williamson County Sheriff’s Office
    Texas Attorney General’s Office
    Texas Department of Criminal Justice OIG
    Texas Department of Public Safety
    U.S. Immigration & Customs Enforcement
    U.S. DHS/Homeland Security Investigations

    *USMS policy generally prohibits naming juvenile suspects.

    MIL Security OSI –

  • MIL-OSI Security: Jamaican Citizen Sentenced to Prison in Connection with Lottery Scheme

    Source: United States Attorneys General 1

    A federal judge in Charlotte, North Carolina, sentenced a Jamaican citizen yesterday to prison for operating a Jamaica-based fraudulent lottery scheme.

    Antony Linton Stewart, 40, pleaded guilty on Aug. 3, 2023, to one count of conspiracy to commit mail and wire fraud, in the Western District of North Carolina.  On Jan. 27, U.S. District Court Judge Robert J. Conrad sentenced Stewart to 84 months in prison. Stewart was also ordered to pay $1,104,041.74 in restitution.

    According to court documents, and as part of his plea, Stewart acknowledged that from approximately 2010 through at least August 2016, he led a fraudulent lottery fraud scheme in which he and his co-conspirators targeted victims in the United States. Stewart admitted that he contacted elderly Americans by phone and falsely told them that they had won money and other prizes in a sweepstakes or lottery.  Stewart told victims that they needed to send money to pay fees and taxes on their winnings.  He repeatedly contacted victims for as long as they could be persuaded to send additional money. No lottery existed and no victim ever received any winnings.

    “Overseas lottery schemes are unfortunately a common means by which foreign criminals seek to target U.S. citizens, particularly elder Americans,” said Acting Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Such schemes are unacceptable, and the Department will hold accountable those who participate in them.”

    “Stealing money from elderly individuals is a despicable crime,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s sentence sends a clear message that fraudsters who target and exploit older adults for financial gain will be brought to justice.”

    This prosecution is part of the Justice Department’s effort to work with federal and foreign law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens.

    The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart. The U.S. Marshals Service also provided significant assistance.

    Trial Attorney Ryan E. Norman of the Justice Department’s Consumer Protection Branch prosecuted the case, with the assistance of Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina.

    If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.

    For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit their website at www.justice.gov/usao-wdnc. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

    MIL Security OSI –

  • MIL-OSI Security: Woman Sentenced for Fraud Scheme Involving Claims for Unnecessary Respiratory Tests Submitted with COVID-19 Tests

    Source: United States Attorneys General

    A California woman was sentenced today to nine years in prison for her role in fraudulently submitting claims to governmental and private insurance programs during the COVID‑19 pandemic for expensive respiratory pathogen panel (RPP) tests that were medically unnecessary and never ordered by health care providers.

    According to court documents, Lourdes Navarro, 66, of Glendale, and Imran Shams owned and controlled Matias Clinical Laboratory, doing business as Health Care Providers Laboratory (HCPL). Navarro and Shams conspired to obtain nasal swab specimens that enabled HCPL to test for COVID-19, as well as to obtain testing orders from physicians and other medical professionals. The specimens were collected from, among others, residents and staff at nursing homes, assisted living facilities, rehabilitation facilities, and similar types of facilities, and from students and staff at primary and secondary schools, for the purported purpose of conducting screening tests to identify and isolate individuals infected with COVID-19. However, Navarro and Shams caused HCPL to perform RPP tests on most of the specimens, even though only COVID-19 testing had been ordered and there was no medical justification for conducting RPP tests on asymptomatic individuals who needed only COVID-19 screening tests. Through HCPL, Navarro and Shams billed approximately $369 million for the RPP tests to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, and were reimbursed approximately $46.7 million for fraudulent claims.

    Navarro was also ordered to forfeit $11,662,939 in funds that the government had previously seized from three bank accounts. The total amount seized and forfeited from Navarro and Shams is $14,518,485. Navarro also was ordered to pay $46,735,400 in restitution.

    Navarro pleaded guilty on Oct. 5, 2023, to conspiracy to commit health care fraud and wire fraud. Shams pleaded guilty on Jan. 24, 2023, in the Central District of California to conspiracy to commit health care fraud and concealment of his exclusion from Medicare and was sentenced to 10 years in prison on Jan. 30, 2024. In addition, on May 29, 2024, Shams was sentenced to five years in prison in connection with his 2017 plea in the Eastern District of New York to conspiracy to commit money laundering, conspiracy to pay and receive kickbacks, and defrauding the United States by obstructing the lawful functions of the IRS, of which three years were ordered to run consecutive to the Central District of California sentence.

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

    The FBI and HHS-OIG investigated the case.

    Trial Attorneys Gary A. Winters and Raymond E. Beckering III of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Maxwell Coll for the Central District of California handled the financial penalties.

    The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the resources of the department 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, visit www.justice.gov/coronavirus.

    MIL Security OSI –

  • MIL-Evening Report: Trump 2.0 chaos and destruction — what it means Down Under

    What will happen to Australia — and New Zealand — once the superpower that has been followed into endless battles, the United States, finally unravels?

    COMMENTARY: By Michelle Pini, managing editor of Independent Australia

    With President Donald Trump now into his second week in the White House, horrific fires have continued to rage across Los Angeles and the details of Elon Musk’s allegedly dodgy Twitter takeover began to emerge, the world sits anxiously by.

    The consequences of a second Trump term will reverberate globally, not only among Western nations. But given the deeply entrenched Americanisation of much of the Western world, this is about how it will navigate the after-shocks once the United States finally unravels — for unravel it surely will.

    Leading with chaos
     Now that the world’s biggest superpower and war machine has a deranged criminal at the helm — for a second time — none of us know the lengths to which Trump (and his puppet masters) will go as his fingers brush dangerously close to the nuclear codes. Will he be more emboldened?

    The signs are certainly there.

    President Donald Trump 2.0 . . . will his cruelty towards migrants and refugees escalate, matched only by his fuelling of racial division? Image: ABC News screenshot IA

    So far, Trump — who had already led the insurrection of a democratically elected government — has threatened to exit the nuclear arms pact with Russia, talked up a trade war with China and declared “all hell will break out” in the Middle East if Hamas hadn’t returned the Israeli hostages.

    Will his cruelty towards migrants and refugees escalate, matched only by his fuelling of racial division?

    This, too, appears to be already happening.

    Trump’s rants leading up to his inauguration last week had been a steady stream of crazed declarations, each one more unhinged than the last.

    He wants to buy Greenland. He wishes to overturn birthright citizenship in order to deport even more migrant children, such as  “pet-eating Haitians” and “insane Hannibal Lecters” because America has been “invaded”.

    It will be interesting to see whether his planned evictions of Mexicans will include the firefighters Mexico sent to Los Angeles’ aid.

    At the same time, Trump wants to turn Canada into the 51st state, because, he said,

    “It would make a great state. And the people of Canada like it.”

    Will sexual predator Trump’s level of misogyny sink to even lower depths post Roe v Wade?

    Probably.

    Denial of catastrophic climate consequences
    And will Trump be in even further denial over the catastrophic consequences of climate change than during his last term? Even as Los Angeles grapples with a still climbing death toll of 25 lives lost, 12,000 homes, businesses and other structures destroyed and 16,425 hectares (about the size of Washington DC) wiped out so far in the latest climactic disaster?

    The fires are, of course, symptomatic of the many years of criminal negligence on global warming. But since Trump instead accused California officials of “prioritising environmental policies over public safety” while his buddy and head of government “efficiency”, Musk blamed black firefighters for the fires, it would appear so.

    Will the madman, for surely he is one, also gift even greater protections to oligarchs like Musk?

    Trump has already appointed billionaire buddies Musk and Vivek Ramaswamy to:

     “…pave the way for my Administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures and restructure Federal agencies”.

    So, this too is already happening.

    All of these actions will combine to create a scenario of destruction that will see the implosion of the US as we know it, though the details are yet to emerge.

    The flawed AUKUS pact sinking quickly . . . Australian Prime Minister Anthony Albanese with outgoing President Joe Biden, will Australia have the mettle to be bigger than Trump. Image: Independent Australia

    What happens Down Under?
    US allies — like Australia — have already been thoroughly indoctrinated by American pop culture in order to complement the many army bases they house and the defence agreements they have signed.

    Though Trump hasn’t shown any interest in making it a 52nd state, Australia has been tucked up in bed with the United States since the Cold War. Our foreign policy has hinged on this alliance, which also significantly affects Australia’s trade and economy, not to mention our entire cultural identity, mired as it is in US-style fast food dependence and reality TV. Would you like Vegemite McShaker Fries with that?

    So what will happen to Australia once the superpower we have followed into endless battles finally breaks down?

    As Dr Martin Hirst wrote in November:

    ‘Trump has promised chaos and chaos is what he’ll deliver.’

    His rise to power will embolden the rabid Far-Right in the US but will this be mirrored here? And will Australia follow the US example and this year elect our very own (admittedly scaled down) version of Trump, personified by none other than the Trump-loving Peter Dutton?

    If any of his wild announcements are to be believed, between building walls and evicting even US nationals he doesn’t like, while simultaneously making Canadians US citizens, Trump will be extremely busy.

    There will be little time even to consider Australia, let alone come to our rescue should we ever need the might of the US war machine — no matter whether it is an Albanese or sycophantic Dutton leadership.

    It is a given, however, that we would be required to honour all defence agreements should our ally demand it.

    It would be great if, as psychologists urge us to do when children act up, our leaders could simply ignore and refuse to engage with him, but it remains to be seen whether Australia will have the mettle to be bigger than Trump.

    Republished from the Independent Australia with permission.

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI New Zealand: Speed limit reduction reversals begin

    Source: New Zealand Government

    Reversals to Labour’s blanket speed limit reductions begin tonight and will be in place by 1 July, says Minister of Transport Chris Bishop.

    “The previous government was obsessed with slowing New Zealanders down by imposing illogical and untargeted speed limit reductions on state highways and local roads.

    “National campaigned on reversing the blanket speed limit reductions at the last election, and over 65 per cent of submitters during consultation on the Land Transport Rule: Setting of Speed Limits 2024 agreed.

    “Reversing the speed limit reductions where safe to do so is also part of the National-ACT coalition agreement.

    “Where Labour was about slowing New Zealand down, the coalition Government is all about making it easier for people and freight to get from A to B as quickly and efficiently as possible, which will help drive economic growth and improved productivity.”

    The Land Transport Rule: Setting of Speed Limits 2024 requires NZTA and local councils to reverse all speed limits lowered since January 2020 on several categories of roads back to their previous limits by 1 July 2025.

    “Labour’s Kieran McAnulty said recently that as Associate Transport Minister under the previous government he’d asked NZTA to review the SH2 Wairarapa speed limit, and that they told him no. It seems he just shrugged and accepted that,” Mr Bishop says.

    “Today provides a classic example of our Government’s determination to stop letting government agencies put things in the too-hard basket, and instead to push forward for actual results.

    “Today provides a classic example of our Government’s determination to stop letting government agencies put things in the too-hard basket, and instead to push forward for actual results.

    “The first state highway to reverse will be the section of SH2 between Featherston and Masterton, where the speed limit reduction in early 2023 under the previous government met with huge community hostility – the exact road that Kieran McAnulty failed to get any action on. This change which will take effect overnight tonight.

    “To ensure this process happens efficiently, over the next few months NZTA will incorporate the automatic speed reversal work alongside planned maintenance and project works.

    “I have also released a further list of 49 sections of state highway for further public consultation so local communities can have their say on keeping their current lower speed limit or returning to the previous higher speed. Public consultation on those sections begins tomorrow and will run for six weeks. 

    “In terms of local road changes, councils have until 1 May 2025 to advise NZTA of the specified roads subject to reversal under the new Rule.”

    The new rule requires reduced variable speed limits outside schools during pick up and drop off times.

    “We are prioritising the safety of Kiwi kids by introducing reduced speed limits outside schools during pick-up and drop-off times. We want to see these changes brought about quickly,” Mr Bishop says.

    “By 1 July 2026, local streets outside a school will be required to have a 30km/h variable speed limit. Rural roads that are outside schools will be required to have variable speed limits of 60km/h or less.

    “Throughout the world, 50km/h is used as the right speed limit to keep urban roads flowing smoothly and safely. The evidence on this is clear – comparable countries with the lowest rates of road deaths and serious injuries, such as Norway, Denmark, and Japan, have speed limits of 50km/h on their urban roads, with exceptions for lower speed limits.

    “These countries have strong road safety records, targeting alcohol, drugs, and speeding. Our Government has a clear focus on improving road safety outcomes with clear targets to ensure Police are focussed on the most high-risk times, behaviours, and locations.”

    Notes to editor:

    Attached fact sheets:

    • 38 sections of state highway for speed limit auto reversal
    • 49 sections of state highway for community consultation

    Under the Setting of Speed Limits Rule signed by previous Transport Minister Simeon Brown in September 2024, the NZ Transport Agency (NZTA) and councils are required to reverse all speed limits lowered since January 2020 on several categories of specified roads back to their previous limits by 1 July 2025.

    To give effect to the new Rule, NZTA will automatically reverse speed limits on 38 sections of the state highway network back to their previous higher speed limit, and publicly consult on a further 49 sections before final decisions are made whether to reverse them or not.

    Public consultation on 49 sections of state highway will begin on 30 January 2025 and run for six weeks. 

    Further note:

    The reference to Mr McAnulty’s comments regarding SH2 in the Wairarapa is taken from Kate Judson’s article in The Wairarapa Times-Age, Jan 25 2025: Slow road back to 100kph for Wairarapa motorists:

    Labour list MP Kieran McAnulty said he was not convinced SH2 speeds south of Greytown would change by July because the decision rested with NZTA.

    “It wouldn’t surprise me if they said they’ll put it up to 100kph if the road gets improved,” he said.

    “I know how resolute NZTA were on it. I was associate transport minister and looked them in the eye and said, ‘I want you to review the speed limit,’ and they said no.”

    MIL OSI New Zealand News –

  • MIL-OSI USA: SECURING MISSOURI’S FUTURE: Governor Kehoe Delivers First State of the State Address

    Source: US State of Missouri

    JANUARY 28, 2025

    Jefferson City — JEFFERSON CITY, MO – Today, Governor Mike Kehoe delivered his first State of the State Address to the Missouri General Assembly, outlining his legislative and budget priorities for Fiscal Year 2026 (FY26).

    Governor Kehoe opened his first address to the 103rd General Assembly by reflecting on lessons learned to stay humble from his mentor, Dave Sinclair, with a commitment to working with the members of the legislature during his time as governor.

    “I said earlier that I will never forget my roots. Well, I’ve sat where you sit. I understand the pressures you face. And I want to work with you—not against you—because I believe we can only secure Missouri’s future if we work together,” said Governor Kehoe.

    Governor Kehoe’s speech focused on the policy priorities that have remained a central focus at the start of his administration, beginning with public safety.

    “Any efforts we may make to improve the lives of Missourians–whether it be education opportunities, cutting taxes, or expanding childcare–none of it matters if Missourians aren’t safe,” Governor Kehoe said. “Securing Missouri’s future begins with public safety.”

    Public Safety

    During his speech, Governor Kehoe discussed the actions his administration took on Inauguration Day, signing six executive orders developed based on input from law enforcement to launch the Safer Missouri initiative.

    To support law enforcement recruitment and retention efforts, Governor Kehoe’s budget recommends funding to bolster the existing Missouri Blue Scholarship Program for law enforcement basic training and $10 million in new funding to assist local communities who prioritize public safety with equipment and training needs through the Blue Shield Program.

    The budget also includes $2.5 million to support the sheriff’s retirement system for another year, and funding for a new crime lab in Cape Girardeau, serving the Missouri State Highway Patrol Troop E region.

    As part of the Safer Missouri initiative, Governor Kehoe urged the General Assembly to pass a comprehensive crime bill that includes increasing penalties for crimes like violent rioting and fleeing from law enforcement in a vehicle, cracking down on criminals who participate in reckless stunt driving and street racing, and efforts to increase oversight and accountability of the St. Louis Metropolitan Police Department.

    To combat the fentanyl crisis and identify areas of high fentanyl use in schools across the state, Governor Kehoe’s budget includes a $4 million investment for fentanyl testing in wastewater systems at schools. Governor Kehoe also encouraged the legislature to take action on increasing penalties for fentanyl trafficking.

    Economic Development

    Governor Kehoe emphasized his efforts to make Missouri a welcoming state for business investment. From manufacturers, to retail, to Missouri’s sports teams: businesses who provide jobs and opportunities to Missourians are an important part the state’s economic success.

    In order to compete with other states, the Kehoe Administration will focus on reducing taxes and cutting regulations, so families keep more of their own money, and so job creators look at our state to expand and hire more hard-working Missourians.

    Governor Kehoe announced that he has directed the Missouri Department of Revenue to work with his staff on a sustainable and comprehensive plan to eliminate the individual income tax once and for all.

    And, knowing that infrastructure and economic development go hand in hand, Governor Kehoe’s budget includes a reappropriation of last year’s 100 million dollars for rural road improvements to ensure all of those funds are invested in rural infrastructure.

    Governor Kehoe’s speech focused largely on solving the biggest challenge to the child care crisis: addressing the current regulatory environment.

    In an effort to make the child care regulations easier to understand and navigate, Governor Kehoe issued Executive Order 25-15, charging the Department of Elementary and Secondary Education-Office of Childhood with a complete re-write of the child care regulations.

    The budget also includes $10 million to offer grant funding opportunities to support partnerships between employers, community partners, and the child care industry to make more child care slots available for Missouri families.

    In an effort to provide timely payments for the child care providers who partner with the state to provide care, providers will receive payments from the state at the beginning of the month on enrollment, starting in fiscal year 2026.

    To build on Missouri’s career and technical education opportunities, Governor Kehoe’s budget includes $15 million in new funding to address equipment, space, and operational needs of career and technical centers across the state, as well as an increase of $5 million on an annual basis to support increased operational costs.

    The budget includes increased funding to expand career counseling to more high schools across the state, so that students can talk to school counselors about their future career path, whether that includes college or not.

    Governor Kehoe also signed Executive Order 25-16 establishing the Governor’s Workforce of the Future Challenge, instructing DESE to put a plan in place for better coordination among key stakeholders, including K-12 schools, local business and industry, and higher education to improve the state’s career and technical education programs and infrastructure.

    Agriculture

    Securing the future of agriculture also means investing in the next generation. Governor Kehoe’s budget includes $800,000 in permanent funding for Missouri FFA.

    Additionally, the budget includes $55 million in new bonding to support the construction of a 40,000 square foot covered multi-use livestock barn and 80,000 square foot stalling barn to house equine and other livestock at the Missouri State Fair’s new arena, which was previously supported by the legislature and is now under construction.

    Education

    Governor Kehoe is a proud supporter of education in all of its forms–public schools, private schools, charter schools–as long Missouri’s children are getting a quality education that best meets their needs.

    To expand school choice, Governor Kehoe urged the General Assembly to pass voluntary open enrollment in public schools.

    Governor Kehoe’s budget also includes $50 million in general revenue funding to bolster the ESA program.

    This year, Governor Kehoe’s budget recommends a $200 million increase for the Foundation Formula, the largest increase since the current Formula was created. And, over $370 million to fully fund the state’s commitment for school transportation needs. For teachers, the budget includes $33 million to fund teacher salaries. Additionally, the budget includes $30 million for Small School Grants to support the continued success of our small rural school districts, the heartbeat of their communities.

    Governor Kehoe also signed Executive Order 25-14 establishing the School Funding Modernization Task Force to recommend changes to the Foundation Formula to better serve students and families.

    Government Improvements 
    To continue to recruit and retain quality state team members, Governor Kehoe announced a statewide time of service pay plan increase for state employees.

    Governor Kehoe also previewed action on DEI programs in state government and support for creating Missouri’s own version of a DOGE initiative. He committed to working with the General Assembly on these efforts in the coming weeks.

    During his speech, Governor Kehoe recognized special guests for their achievements and commitment to the people of Missouri:

    Special Guests of the Governor

    • Lizzy Schott
    • Safer Missouri Initiative Group
    • Alena Malone
    • Adeline Thessen
    • USS Missouri Crew Members  

    Governor Kehoe emphasized there are safer choices than abortion in Missouri and committed to helping pregnant women know these exist, including the Pregnancy Resource Centers across the state. The budget includes support for alternatives to abortion with $4 million  in additional funding to benefit expecting and new mothers, a more than 50% increase to existing services.

    Governor Kehoe closed the speech thanking veterans and service members, adding that his proposed budget includes an additional $10 million of general revenue funding to our Missouri Veterans Homes.

    “Our work in this building is only possible because of those who came before us: the sacrifices of our brave service men and women,” said Governor Kehoe. “Under the Kehoe Administration, NO veterans home will close due to a lack of state funding.”

    To view a full transcript of Governor Kehoe’s speech and special guest bios, please see attachments. To view the FY2026 Budget in Brief, please see attachment.

    The FY26 Executive Budget will be available here at 3:00 p.m. To view the executive orders signed by Governor Kehoe, visit this link.

    Pictures from today’s events, including special guests, will be available on Flickr. An archived video of the 2025 State of the State is available at mo.gov/live.

    ###

    MIL OSI USA News –

  • MIL-OSI Security: McKeesport Felon Pleads Guilty to Possessing Firearm

    Source: Office of United States Attorneys

    PITTSBURGH, Pa. – A former resident of McKeesport, Pennsylvania, pleaded guilty in federal court to a violation of federal firearms laws, Acting United States Attorney Troy Rivetti announced today.

    Paul Kirk, 29, pleaded guilty before United States District Judge Cathy Bissoon to one count of possession of a firearm and ammunition by a convicted felon.

    In connection with the guilty plea, the Court was advised that, on August 22, 2023, Kirk fled from McKeesport Police officers during a traffic stop. Upon Kirk’s being taken into custody a short distance from the traffic stop, officers found a loaded handgun in the defendant’s pocket. Kirk has multiple previous felony convictions. Federal law prohibits possession of a firearm or ammunition by a convicted felon.

    Judge Bissoon scheduled sentencing for May 29, 2025. The law provides for a maximum total sentence of up to 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.

    Pending sentencing, the court ordered that the defendant remain in custody.

    Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives and McKeesport Police Department conducted the investigation that led to the prosecution of Kirk.

    MIL Security OSI –

  • MIL-OSI Security: Belcourt Man Sentenced to Life in Federal Prison for Sexual Abuse and Domestic Assault by Strangulation

    Source: Office of United States Attorneys

    Fargo – United States Attorney Mac Schneider announced that Justin Lee Baker, age 44, from Belcourt, ND, appeared in federal court on January 28, 2025, before District Court Judge Peter Welte and was sentenced to life in federal prison, and $400 in special assessment fees for the offenses of sexual abuse by threat of death or serious bodily injury (two counts) and assault of a spouse, intimate partner, or dating partner by strangulation (two counts).

    As noted in court documents, in or about August 2020, law enforcement in Belcourt, ND, was dispatched to a residence for a report of a domestic disturbance.  Jane Doe 1 reported she had been severely beaten by her boyfriend, identified as Baker. Law enforcement observed extensive bruising throughout Jane Doe 1’s face, neck, chest, arms, and legs, as well as a laceration on top of her head.  In or about August 2023, Jane Doe 1 was interviewed by the Federal Bureau of Investigation regarding the incident.  In addition to describing the physical assault she previously reported, Jane Doe 1 described being sexually assaulted by Baker including him using objects causing excruciating pain.  Jane Doe 1 believed Baker was going to kill her. Jane Doe 1 indicated Baker had strangled her and she had lost consciousness during the course of the assault. 

    Through the course of the investigation, the Federal Bureau of Investigations identified several other women physically and sexually assaulted by Baker, including Jane Doe 2.  Jane Doe 2 was interviewed in August 2023.  She described being held captive in Baker’s camper and being physically and sexually assaulted.  Jane Doe 2 described Baker “wailing” on her, strangling her, and sexually assaulting her with his penis.  Jane Doe 2 stated the assault caused her to lose consciousness and extreme pain. Jane Doe 2 stated Baker threatened she would be “six feet under” and Jane Doe 2 feared Baker would kill her. 

    “This sentence is a fitting one considering the brutality and depravity of the defendant’s crimes against his domestic partners and women in the community,” Schneider said. “Domestic violence and sexual abuse are serious crimes, and as this case shows we will not hesitate to bring abusers to federal court to face justice where our office has jurisdiction. I give credit to our career prosecutors and partners in the FBI for obtaining this result and removing this individual from the community.”  

    “The horrendous sexual abuse committed by Justin Lee Baker is cruel and reprehensible,” said Special Agent in Charge Alvin M. Winston Sr. of FBI Minneapolis. “This sentencing sends a clear message: the FBI will relentlessly pursue those who prey on others, especially the innocent and defenseless, and ensure they are held accountable.”

    This case was investigated by the Federal Bureau of Investigation.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Member of Violent Gang Pleads Guilty to Racketeering and Firearm and Drug Trafficking Offenses

    Source: Office of United States Attorneys

    BOSTON – A Boston-area man pleaded guilty today to his role in Cameron Street, a violent Boston gang.

    Jonathan Darosa, a/k/a “Jeezy,” 31, of Boston, pleaded guilty to one count of conspiracy to participate in a racketeering enterprise (more commonly referred to as RICO or racketeering conspiracy); one count of being a felon in possession of firearm and ammunition; one count of distribution of and possession with intent to distribute cocaine and oxycodone; and one count of distribution of and possession with intent to distribute cocaine. U.S. Senior District Court Judge William G. Young scheduled sentencing for May 1, 2025.

    Over the course of a two-year investigation, Darosa was identified as a member of Cameron Street. On two separate occasions, Darosa distributed cocaine and oxycodone to a cooperating witness. Additionally, in an interaction with law enforcement, Darosa threatened officers, telling them “If I had a gun on me, I would have shot at you,” “I am not going back to jail,” and “I keep it on my hip.” In April 2021 in Dorchester, local law enforcement observed Darosa wearing a “waist bag” across his chest – law enforcement had recovered firearms from similar bags in the past. During a search of Darosa’s person, a Taurus 9 millimeter semi-automatic pistol containing 12 rounds of assorted 9 millimeter ammunition, including one round in the chamber, was recovered.

    According to court documents, Cameron Street is a violent gang based largely in the Dorchester section of Boston that used violence and threats of violence to preserve, protect and expand its territory, promote a climate of fear and enhance its reputation.

    Darosa has been convicted on three prior occasions of unlawful possession of a firearm, including a 2016 conviction in Suffolk Superior Court for which he served a three-year prison sentence.

    The charge of RICO conspiracy and conspiracy to interfere with commerce by force or violence each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of distribution of cocaine and oxycodone provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of $1 million. The charge of distribution of and possession with intent to distribute cocaine provides for a sentence of up to 20 years in prison, at least three years of supervised release up to life and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

    United States Attorney Leah B. Foley; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Feld Division; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Boston Police Commissioner Michael Cox made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Suffolk County Sheriff’s Office; Suffolk, Plymouth, Norfolk and Bristol County District Attorney’s Offices; and the Canton, Quincy, Randolph, Somerville, Brockton, Malden, Stoughton, Rehoboth and Pawtucket (R.I.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Charles Dell’Anno of the Narcotics & Money Laundering Unit are prosecuting the case.

    This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. 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 remaining defendants named in the indictment are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    MIL Security OSI –

  • MIL-OSI USA: Woman Sentenced for Fraud Scheme Involving Claims for Unnecessary Respiratory Tests Submitted with COVID-19 Tests

    Source: US State of California

    A California woman was sentenced today to nine years in prison for her role in fraudulently submitting claims to governmental and private insurance programs during the COVID‑19 pandemic for expensive respiratory pathogen panel (RPP) tests that were medically unnecessary and never ordered by health care providers.

    According to court documents, Lourdes Navarro, 66, of Glendale, and Imran Shams owned and controlled Matias Clinical Laboratory, doing business as Health Care Providers Laboratory (HCPL). Navarro and Shams conspired to obtain nasal swab specimens that enabled HCPL to test for COVID-19, as well as to obtain testing orders from physicians and other medical professionals. The specimens were collected from, among others, residents and staff at nursing homes, assisted living facilities, rehabilitation facilities, and similar types of facilities, and from students and staff at primary and secondary schools, for the purported purpose of conducting screening tests to identify and isolate individuals infected with COVID-19. However, Navarro and Shams caused HCPL to perform RPP tests on most of the specimens, even though only COVID-19 testing had been ordered and there was no medical justification for conducting RPP tests on asymptomatic individuals who needed only COVID-19 screening tests. Through HCPL, Navarro and Shams billed approximately $369 million for the RPP tests to Medicare, the Health Resources and Services Administration COVID-19 Uninsured Program, and a private health insurance company, and were reimbursed approximately $46.7 million for fraudulent claims.

    Navarro was also ordered to forfeit $11,662,939 in funds that the government had previously seized from three bank accounts. The total amount seized and forfeited from Navarro and Shams is $14,518,485. Navarro also was ordered to pay $46,735,400 in restitution.

    Navarro pleaded guilty on Oct. 5, 2023, to conspiracy to commit health care fraud and wire fraud. Shams pleaded guilty on Jan. 24, 2023, in the Central District of California to conspiracy to commit health care fraud and concealment of his exclusion from Medicare and was sentenced to 10 years in prison on Jan. 30, 2024. In addition, on May 29, 2024, Shams was sentenced to five years in prison in connection with his 2017 plea in the Eastern District of New York to conspiracy to commit money laundering, conspiracy to pay and receive kickbacks, and defrauding the United States by obstructing the lawful functions of the IRS, of which three years were ordered to run consecutive to the Central District of California sentence.

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

    The FBI and HHS-OIG investigated the case.

    Trial Attorneys Gary A. Winters and Raymond E. Beckering III of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Maxwell Coll for the Central District of California handled the financial penalties.

    The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the resources of the department 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, visit www.justice.gov/coronavirus.

    MIL OSI USA News –

  • MIL-OSI Security: New Jersey Man Pleads Guilty to Attempting to Provide Material Support to al Shabaab

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

    Danielle R. Sassoon, the United States Attorney for the Southern District of New York, announced today that KARREM NASR, a/k/a “Ghareeb Al-Muhajir,” pled guilty to attempting to provide material support to al Shabaab, a designated foreign terrorist organization before U.S. District Judge Analisa Torres.

    U.S. Attorney Danielle R. Sassoon said: “Karrem Nasr devoted himself to waging violent jihad against America and its allies. Inspired by the evil terrorist attack perpetrated by Hamas on October 7, 2023, Nasr, a U.S. citizen, traveled from Egypt to Kenya in an effort to join al Shabaab so that he could execute his jihadist mission of creating death and destruction.  Now, instead of perpetrating a deadly attack in the name of a foreign terrorist group, Nasr resides in federal prison.  I thank the career prosecutors of my office and our law enforcement partners for their extraordinary work in disrupting this plan and bringing a terrorist to justice.”

    According to the allegations in the court filings and statements made in Court:

    NASR is a 24-year-old U.S. citizen who moved from New Jersey to Egypt in or about July 2023.  Starting in at least in or about November 2023, NASR repeatedly expressed his desire and plans to join al Shabaab, a designated foreign terrorist organization that has attacked Americans and American allies around the world, and wage jihad, including in communications with an FBI confidential source (the “CS”), who was posing as a facilitator for terrorist organizations.[1]

    In communications exchanged with the CS and postings that NASR made online, NASR stated that he had been thinking about engaging in jihad for a long time, and he was particularly motivated to become a jihadi by the October 7, 2023, Hamas terrorist attack in Israel.  For example, in communications with the CS, NASR stated that the number one enemy was “evil America,” which he called the “head of the snake.”  In social media posts, NASR warned that “Jihad” was “coming soon to a US location near you,” posting airplane, bomb, and fire emojis:

    In further communications with the CS, NASR expressed his intent to join al Shabaab to receive military training and engage in jihad, that he was prepared to kill and be killed, and that he specifically aspired to be a martyr for the jihadist cause.  For example, NASR stated “I would like to become a martyr in the sake of Allah. . . .  I think in coming years, inshallah we are going to see here big events in Egypt and the other Arab countries.  Inshallah if this happens; I will come back to Egypt, inshallah to help the Muslims in Egypt in their struggle to establish here in Egypt.”

    Beyond his online postings and communications with the CS, NASR took specific and targeted steps in his effort to join and receive military training from al Shabaab.  Among other things, NASR made flight and lodging reservations for travel to Kenya, where he planned to meet members of al Shabaab for further travel to Somalia to join and train with the terrorist group.  In addition, the day before his flight, NASR told the CS that he planned to delete data from his cellphone and computer to ensure that if he were detained, law enforcement would not be able to recover evidence of his jihadist activities from those devices.  On December 14, 2023, as planned, NASR flew from Egypt to Kenya, where he then planned to transit into Somalia to join and train with al Shabaab.  Later that day, NASR was taken into custody by Kenyan authorities.  On December 28, 2023, NASR arrived in the U.S.

    *                *                *

    NASR, 24, of Lawrenceville, New Jersey, pled guilty to attempting to provide material support to a designated foreign terrorist organization, which carries a maximum sentence of 20 years in prison.  NASR is scheduled to be sentenced by Judge Torres on June 30, 2025.

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

    Ms. Sassoon praised the outstanding efforts of the Federal Bureau of Investigation (“FBI”)’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York City Police Department.  Ms. Sassoon also thanked the FBI’s Legal Attaché Office in Nairobi, Kenya, the Counterterrorism Section of the Department of Justice’s National Security Division, the Department of Justice’s Office of International Affairs, and the Kenyan Directorate of Criminal Investigations, including the Anti-Terrorism Police Unit and the Joint Terrorism Task Force-Kenya, for their assistance.

    This case is being handled by the Office’s National Security and International Narcotics Unit.  Assistant U.S. Attorneys Camille L. Fletcher, Kimberly J. Ravener, and Stephen Ritchin are in charge of the prosecution, with assistance from Trial Attorney Jennifer Burke of the Counterterrorism Section.
     

    [1] Communications referenced herein are described in substance and in part.

    MIL Security OSI –

  • MIL-OSI Security: Justice Department Secures Agreement Preventing Indiana Exhibitor and Dog Breeder from Violating the Animal Welfare Act

    Source: Office of United States Attorneys

    WASHINGTON — In a consent decree entered today by the U.S. District Court for the Northern District of Indiana, Indiana exhibitor and dog breeder, Vernon D. Miller, agreed to not apply for or engage in any activity that requires a Department of Agriculture (USDA) license for two years. If Miller is relicensed in the future, he must comply with Animal Welfare Act (AWA) regulations and standards necessary to provide humane and lawful care to the animals he exhibits and sells.

    A complaint filed in October alleged that Miller — individually and doing business as the Dutch Creek Farm Animal Park in Shipshewana, Indiana — had violated the AWA by failing to provide adequate veterinary care, safe and hospitable enclosures, appropriate enrichment and sanitary housing, food and water to his animals. The complaint also alleged that Miller had failed to maintain legally required records.

    At the time of the filing of the complaint, Miller had been cited for 90 AWA violations in just over a year, the highest number of citations for any USDA-licensed facility during that time period (2023-2024). Miller’s violations impacted over 300 animals that he exhibited to the public — including deer, zebra, exotic birds and primates — and dozens of dogs and puppies that he bred for sale as pets.

    The citations for multiple violations included unsanitary conditions (including stalls piled high with feces and food dishes coated in grime or mold), and failing to provide animals with sufficient shelter, failing to properly vaccinate puppies and failing to provide veterinary care for animals with illnesses or open wounds. The complaint alleged that such conditions had likely led to numerous animal deaths, with at least seven animals dying in the few months prior to the filing of the case.

    USDA suspended Miller’s license for 21 days starting on Oct. 9. The court entered a temporary restraining order against Miller on Oct. 28, requiring him to comply with multiple AWA regulations and standards, provide records and documentation to help monitor compliance and refrain from buying, selling, euthanizing or exhibiting animals without the consent of the United States or the court. The temporary restraining order expired on Dec. 2.

    “The maltreatment of animals entrusted to Mr. Miller’s care is a despicable act that deserves just intervention,” said Acting United States Attorney Tina L. Nommay.  “We will continue to work with our federal partners to identify and hold accountable those exhibitors and dog breeders who provide inhumane care to animals in violation of the Animal Welfare Act.” 

    “USDA is committed to ensuring the safety and wellbeing of animals protected under the Animal Welfare Act,” said Deputy Administrator Sarah Helming for USDA’s Animal Care program. “The partnership between USDA and DOJ helps to ensure enforcement of the AWA regulations for those who put regulated animals at risk.”

    In addition to not applying for or engaging in activity requiring a USDA license for at least two years, the consent decree, in effect for five years, outlines that Miller will allow USDA inspectors limited access to the facility, if it is open to the public, and will produce certain records for compliance monitoring during any time he is not licensed. If Miller applies for and receives a USDA license in the future, he agrees to comply with AWA regulations and standards that he had previously violated and to maintain veterinary and other accurate and complete records.

    USDA investigated the case and filed a parallel administrative enforcement action.

    Senior Trial Attorney Devon Flanagan and Trial Attorneys Kamela Caschette, Angela Mo and Chris Carrara of the Justice Department’s Wildlife and Marine Resources Section prosecuted the case, with support from Assistant U.S. Attorney Dirk DeLor for the Northern District of Indiana and USDA’s Office of General Counsel and Animal and Plant Health Inspection Service. 

    MIL Security OSI –

  • MIL-OSI Security: Two New Jersey Men Convicted For Their Roles In The Stephen Crane Village Drug Trafficking Organization, Including A Leader Convicted Of Murder

    Source: Office of United States Attorneys

    NEWARK, N.J. –  Yesterday afternoon a Newark jury convicted two New Jersey men for their roles in a violent drug trafficking organization, Acting U.S. Attorney Vikas Khanna announced.

    Michael Mayse, 38, of Newark, a leader of the Stephen Crane Drug Trafficking Organization, was convicted of murder, drug trafficking conspiracy, and related drug and firearms offenses.

    Gary Shahid, 66, of Newark, a drug supplier of the Stephen Crane Drug Trafficking Organization, was convicted of drug trafficking conspiracy, distribution and possession with intent to distribute controlled substances, and firearms offenses.

    “This Office’s commitment to prosecuting violent crime and serious drug trafficking offenses is unwavering.  This case demonstrates the strength of our partnerships with federal, state, and local law enforcement and ensures that serious consequences will follow for these defendants.”

    Acting U.S. Attorney Vikas Khanna

    “ATF remains steadfast in identifying and apprehending those who are terrorizing our neighborhoods with violence and senseless disorder,” ATF Special Agent in Charge L.C. Cheeks, Jr., Newark Field Division stated.  “These guilty verdicts bring accountability to violent criminals whose actions disregard criminal law, human life, and public safety. We will continue to work alongside our law enforcement partners and secure the safety of our communities.”

    “Drug trafficking can be a dangerous and violent game, often entangled with the deadly consequences. Today’s conviction against these two members of the Stephen Crane Village Drug Trafficking Organization, who repeatedly used violence when operating their criminal enterprise, shows the commitment the DEA and our law enforcement partners have in keeping our communities safe and making sure those responsible for these types of violent crimes face the consequences for their actions,” said DEA Special Agent in Charge Cheryl Ortiz, New Jersey Field Division.

    According to documents filed in this case and statements made in court:

    Stephen Crane Village is a public housing complex near Branch Brook Park, on the border of Newark, New Jersey and Belleville, New Jersey. Stephen Crane Village was the site of an open-air drug market controlled by a violent drug trafficking organization (“DTO”) from at least February 2019 through February 2020.

    Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, electronic surveillance, and the analysis of telephone call detail records, law enforcement determined that the members of the DTO conspired to distribute narcotics, including heroin, fentanyl, and cocaine base, in and around Stephen Crane Village.

    The DTO used a drug stash apartment in Stephen Crane Village to package and store their drugs for distribution. The DTO sold significant quantities of drugs to confidential sources and an undercover agent. On December 15, 2019, Mayse entered the DTO’s stash apartment in Stephen Crane Village and murdered a member of the DTO over a monetary debt relating to the drug trafficking conspiracy.

    The count of conspiracy to distribute at least 100 grams of heroin carries a minimum sentence of five years in prison, maximum penalty of 40 years in prison, and a fine of up to $5 million. The counts of distribution of heroin, fentanyl, and cocaine each carry a maximum of 20 years in prison and a fine of $1 million. The count for of possession with intent to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and 500 grams or more of cocaine carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. The count of murder during and in relation to a drug trafficking crime carries a maximum sentence of life in prison and a $250,000 fine. The count of discharging a firearm during and in relation to a drug trafficking crime carries a minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a $250,000 fine.  The counts of possessing a firearm in furtherance of a drug trafficking crime carries a minimum sentence of 5 years in prison, a maximum sentence of life in prison, and a $250,000 fine.

    Acting U.S. Attorney Khanna credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Cheryl Ortiz; the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II and Chief Mitchell G. McGuire; the Newark Police Department, under the direction of Director Emanuel Miranda; and the Belleville Police Department, under the direction of Chief Mark Minichini.  He also thanked the U.S. Marshals Service and the Federal Bureau of Investigation for their assistance with this case.

    The investigation was conducted as part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the DHS/HSI, the USMS, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.

    This case is also conducted under the auspices of 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

    The government is represented by Assistant U.S. Attorney Tracey Agnew of the Criminal Division in Trenton and Assistant U.S. Attorney Jason Goldberg of the Organized Crime and Gangs Unit in Newark.

                                                     ###

    Defense counsel:

    Thomas Ambrosio, Esq., for Gary Shahid

    Joel Silberman, Esq., and Keith Oliver, Esq., for Michael Mayse

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  • MIL-OSI Security: Federal Fugitive Sentenced to 15 Years in Prison for Armed Drug Trafficking

    Source: Office of United States Attorneys

     MOBILE, AL – A Mobile man was sentenced to 180 months in prison for trafficking drugs and possessing firearms in furtherance of drug trafficking crimes while being a federal fugitive.

    According to court documents, Tesean R. James, 30, was convicted of a bulk marijuana trafficking conspiracy in federal court in 2019. After his release from federal prison in September 2021, James absconded from court-ordered supervision and remained a fugitive for more than two years.

    In July 2023, federal and local law enforcement agents attempted to arrest James on his fugitive warrant. James led agents on a high-speed vehicle chase through a residential neighborhood in Mobile, bailing out of his vehicle and eluding capture on foot. In James’s abandoned vehicle, agents recovered two pistols and seven pounds of bulk marijuana. Later, in December 2023, agents captured James in Mobile after a brief foot chase. Agents executed a search warrant at the house where James had been staying, recovering more than 34 pounds of bulk marijuana, 1.5 kilograms of psilocybin mushrooms, more than $34,000 in drug proceeds, and two guns, one of which had previously been reported stolen.

    James confessed to police that he knew he had active warrants and was a federal fugitive. James admitted that he regularly received shipments of 50 pounds of marijuana at a time, which he coordinated via encrypted apps on his cell phones. Agents searched James’s cell phones, finding evidence that he had been selling marijuana and other narcotics, including mushrooms, prescription pills, and codeine syrup, since being released from federal prison in September 2021. James’s phones also contained evidence that he knew he was a fugitive, including a photo of James that had been posted on the news as “Fugitive of the Week.”

    In addition to the 180-month prison term, Chief United States District Judge Jeffrey U. Beaverstock ordered James to serve a five-year term of supervised release upon his release from prison, during which time he will receive mental health treatment. The court did not impose a fine, but Judge Beaverstock ordered James to pay $300 in special assessments. The court also forfeited James’s guns and electronic devices to the United States.

    U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.

    The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, Homeland Security Investigations, and the Mobile Police Department investigated the case.

    Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.

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

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  • MIL-OSI Security: U.S. Attorney’s Office Recovers More Than $55 Million in Civil Settlements and Judgments in Calendar Year 2024

    Source: Office of United States Attorneys

    SAN ANTONIO – U.S. Attorney Jaime Esparza announced today that the Western District of Texas recovered $55,969,678.60 in settlements and judgments in over 25 affirmative civil enforcement cases between January 1, 2024, and December 31, 2024. This figure includes recoveries in both local matters and cases handled jointly with other U.S. Attorney’s Offices and the Department of Justice’s Civil Division.

    “I am proud of my office’s work this year to achieve several significant civil recoveries for American taxpayers and the people of the Western District of Texas,” said U.S. Attorney Esparza. “We will continue to work with our agency and law enforcement partners to vigorously pursue civil remedies on behalf of the United States when appropriate.”

    The office’s largest civil recoveries were obtained in False Claims Act (FCA) matters. The most significant FCA recoveries include:

    • a $21.75 million settlement with Medisca, Inc. to resolve allegations concerning false and inflated Average Wholesale Prices for ingredients used in compound prescriptions;
    • a $15.875 million settlement with Booz Allen Hamilton to resolve allegations of false claims related to computer military training simulators and systems;
    • a $4.2 million settlement with Elara Caring and its subsidiaries to resolve allegations of false claims for hospice services provided to patients who were not terminally ill;
    • a $2.3 million judgment against Ma Acupuncture Center and Dr. Dongxin Ma to resolve allegations of inflated acupuncture bills submitted to the Department of Veterans Affairs;
    • a $2 million settlement with Five Point Enterprises LLC to resolve allegations of false claims for educational assistance benefits under the Post-9/11 GI Bill; and
    • a $1.3 million settlement with Oncology San Antonio and Dr. Jayasree Rao to resolve allegations of unlawful kickbacks and medically unnecessary tests and treatments.

    The U.S. Attorney’s Office obtained several smaller—but nevertheless significant—FCA recoveries in COVID-fraud cases, including a $680,000 settlement with Lafayette RE Management LLC and Thibault Adrien, and a $425,710 settlement with Freedom Solar LLC. In both cases, the government alleged the settling parties made false certifications in applying for and/or obtaining forgiveness of Paycheck Protection Program loans.

    Another area of emphasis for the Western District of Texas is the recovery of civil penalties under the Controlled Substances Act (CSA), which imposes strict regulatory requirements on doctors, pharmacists, and other individuals and entities that handle dangerous drugs and precursor chemicals. Significant CSA recoveries in 2024 include:

    • a $600,000 settlement with Dr. Alfonso Luevano (of which $465,884.22 was attributed to CSA civil penalties and $134,115.78 was attributed to FCA damages) to resolve allegations related to unlawful prescriptions for Schedule II controlled substances;
    • a $300,000 settlement with Shrieve Chemical Company LLC to resolve allegations the company violated recordkeeping requirements relating to the importation and distribution of listed chemicals, manufactured a listed chemical without registering, and made a drop shipment to a customer without first importing the chemical to its registered location; and
    • a $210,000 settlement with Sachnikumar Patel, RPh., Medical Arts Pharmacy, and Express Pharmacy to resolve allegations they unlawfully dispensed “office use” prescriptions, failed to register as reverse distributors, and violated CSA recordkeeping requirements.

    The claims resolved by the settlements referenced above are allegations only and there has been no determination of liability.

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  • MIL-OSI Security: Maryland Life Insurance Broker Convicted in $20-Million Insurance Fraud Scheme

    Source: Office of United States Attorneys

    Baltimore, Maryland – After a seven-day trial, a federal jury found James William Wilson, Jr., 77, of Owings Mills, Maryland, guilty of 13 counts of fraud, three counts of money laundering, two counts of filing false tax returns, and one count of aggravated identity theft.

    Erek L. Barron, U.S. Attorney for the District of Maryland, announced the verdict with Acting Deputy Assistant Attorney General Stuart M. Goldberg, Department of Justice Tax Division, and Special Agent in Charge Kareem Carter, Internal Revenue Service-Criminal Investigation Division, Washington Field Office.

    According to court documents and evidence presented at trial, Wilson defrauded life-insurance companies by securing more than 40 life-insurance policies. Wilson’s scheme included mispresenting policy applicants’ health, wealth, and existing life-insurance coverage. The total death benefits from these policies exceeded $20 million.

    Additionally, Wilson defrauded individual investors to receive funds that he used to pay premiums on the fraudulently obtained life-insurance policies. Wilson concealed the fraud by transferring the proceeds to multiple bank accounts, including accounts in the name of trusts. He then filed false individual income-tax returns for 2018 and 2019, which concealed the fraudulent proceeds from each year, approximately $5.7 million and $2 million, respectively.

    Wilson is scheduled to be sentenced at 9:30 a.m., on May 1, 2025, and faces a maximum penalty of 20 years in prison for each count of conspiracy, wire fraud, mail fraud, and money laundering; and three years in prison for each count of filing a false tax return.  He also faces two years in prison for one count of aggravated identity theft. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

    In addition, Wilson’s wife, Maureen, 76, has also been charged with fraud, conspiracy, money laundering, and filing false tax returns for 2018 and 2019. Her trial is scheduled for March 3, 2025.

    IRS-Criminal Investigation investigated the case, with assistance from the Maryland Insurance Administration and the Maryland Office of The Attorney General.

    U.S. Attorney Barron commended the IRS-Criminal Investigation Division for their work on the case. Mr. Barron also thanked Assistant U.S. Attorneys Matthew P. Phelps and Philip Motsay and Trial Attorneys Shawn Noud and Richard Kelley, who prosecuted the federal case.

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

    # # #

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  • MIL-OSI Security: New Orleans Man Pleads Guilty To Federal Drug Charges

    Source: Office of United States Attorneys

    NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that on January 16, 2025, JONAS RICHARD (“RICHARD”), age 43, pled guilty to three counts of a superseding indictment charging him with distribution of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).

    As to each count, RICHARD faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, at least three years of supervised release, and a mandatory special assessment fee of $100.00.  RICHARD is set for sentencing on April 24, 2025.

    According to court documents, on August 24, 2023, as part of operation Big Easy, undercover agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) while walking through the French Quarter in New Orleans, were approached by RICHARD about purchasing narcotics.  After agreeing to a price for heroin, RICHARD contacted his supplier/ co-defendant. Later, RICHARD’s supplier arrived and gave the narcotics to RICHARD, who then gave the narcotics to the undercover agents.  After testing, the narcotics were identified as fentanyl and weighed 3.36 grams.

    Following the August 24, 2023 sale, RICHARD maintained telephone contact with the undercover agent and on August 28, 2023, met the agents in a New Orleans parking lot.  On this occasion, RICHARD sold them 16.26 grams of fentanyl.

    On September 15, 2023, RICHARD sold the agents a half ounce of fentanyl laced heroin in two packages.  Each package weighed 12.10 and 4.02 grams, respectively.

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

    The case was investigated by the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.  This case was prosecuted by Assistant U.S. Attorney Sarah Dawkins of the Violent Crime Unit.

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  • MIL-OSI Security: Former Colorado Springs Man Sentenced For Defrauding Taxpayer Funded COVID-19 Relief Program

    Source: Office of United States Attorneys

    DENVER – The United States Attorney’s Office for the District of Colorado announces that Charles Lacona, Jr., 67, formerly of Colorado Springs, was sentenced to 24 months in federal prison and ordered to pay $549,274.14 in restitution after being found guilty by a federal jury on two counts of wire fraud and one count of money laundering related to fraudulent COVID-19 related funds he received through the Paycheck Protection Program (PPP).

    According to the facts established at trial, between April 2020 and April 2021, Lacona devised and participated in a scheme to defraud a lender of $513,732.50 in PPP loans. Lacona inflated payroll costs and gross receipts, made false statements and certifications, and submitted fabricated tax documents and payroll reports.  During that same period, Lacona unsuccessfully applied for additional emergency government assistance through the Economic Injury Disaster Loan (EIDL) program.  Lacona used some of the fraudulently obtained funds to purchase a Cadillac CT6 for $67,704.13.

    “Theft of taxpayer dollars will not be tolerated,” said Acting United States Attorney J. Bishop Grewell. “This sentence sends a message that people who defrauded the United States Government will be held accountable for their actions.”

    “IRS Criminal Investigation is committed to holding accountable those who exploited the COVID-19 pandemic relief programs,” said Amanda Prestegard, Special Agent In Charge, Denver Field Office. “Investigating those who defrauded programs meant for hard working Americans will remain a top priority for our agency.”

    United States District Court Judge Daniel D. Domenico presided over the trial. IRS Criminal Investigation handled the investigation. Assistant United States Attorneys Craig Fansler and Nicole Cassidy handled the prosecution.

    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 July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five 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.  The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action.

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

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  • MIL-OSI Security: Gangster Disciples Member Sentenced for Illegally Possessing a Firearm

    Source: Office of United States Attorneys

    COLUMBUS, Ga. – A validated member of the Gangster Disciples with a violent criminal past in the Columbus community was sentenced to more than 13 years in prison for illegally possessing a firearm resulting from a Project Safe Neighborhoods case.

    Christopher Gilliam, 36, of Columbus, was sentenced to serve 162 months in prison to be followed by three years of supervised release by U.S. District Judge Clay Land on Jan. 28. Gilliam pleaded guilty to one count of possession of a firearm by a convicted felon on Oct. 29, 2024. There is no parole in the federal system.

    “Violent convicted felons caught illegally with firearms in the Middle District of Georgia will find their cases in federal court,” said Acting U.S. Attorney Shanelle Booker. “This case is another example of the kind of effective law enforcement partnerships helping us track down and hold the most dangerous repeat offenders accountable.”

    “Project Safe Neighborhoods is not just a program; it is a powerful, unyielding effort to dismantle violent criminal networks and rid our communities of those who bring harm. Through strategic enforcement and collaboration, we will ensure that violent offenders, like Gilliam, face justice in federal court,” said ATF Atlanta Assistant Special Agent in Charge Beau Kolodka.

    “If you are bold enough to commit a crime involving a gun coupled with gang involvement, we will be courageous enough to arrest you for your crimes against others,” said Muscogee County Sheriff Greg Countryman. “We will continue to work with our federal partners to promote safer neighborhoods and communities.”

    According to court documents and statements referenced in court, Gilliam was wanted for an active outstanding arrest warrant for aggravated assault when law enforcement tracked him to his girlfriend’s residence in Columbus on July 21, 2023. Gilliam was taken into custody and officers found a stolen 9mm semiautomatic pistol with a laser and a loaded 15-round magazine in plain view. Gilliam has a lengthy criminal history, to include prior convictions for aggravated assault. It is illegal for a convicted felon to possess a firearm.

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

    The case was investigated by the Muscogee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).

    Assistant U.S. Attorney Crawford Seals Chief prosecuted the case for the Government.

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  • MIL-OSI Security: Sanford Man Sentenced to 10 Years After Officer Sees Drugs Protruding from His Shirt Pocket

    Source: Office of United States Attorneys

    PORTLAND, Maine: A Sanford man was sentenced today in U.S. District Court in Portland for possessing fentanyl with intent to distribute.

    U.S. District Judge Nancy Torresen sentenced Nicholas Delahunt, 39, to 120 months in prison to be followed by eight years of supervised release.

    According to court records, in October 2023, an officer from the Sanford Police Department noted a vehicle pulled over on the side of the road. The officer queried the vehicle and learned that the registered owner, Delahunt, had a suspended license. Police confirmed Delahunt was operating the vehicle. While speaking with him on the side of the road, the officer noted a large plastic baggie protruding from his sweatshirt front pocket that appeared to contain narcotics. Delahunt removed the bag, which was found to contain approximately 166 grams of fentanyl. A further search of Delahunt’s person revealed three additional grams of fentanyl. Just 2 grams of fentanyl is considered a potentially lethal dose. Delahunt was previously convicted in Maine in 2021 for unlawful trafficking of scheduled drugs.

    The FBI investigated the case with assistance from the Sanford Police Department.

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  • MIL-OSI Security: Boynton Beach Man Sentenced To 5 Years For Distributing Videos Depicting The Sexual Abuse Of Children

    Source: Office of United States Attorneys

    Jacksonville, Florida – Chief United States District Judge Marcia Morales Howard has sentenced Timothy Burch Morris (46, Boynton Beach) to five years in federal prison for distributing over the internet two videos depicting the sexual abuse of young children. Morris was also ordered to serve a five-year term of supervised release, pay $10,000 in assessments for child victims, and register as a sex offender.

    According to court documents, on November 20, 2023, an FBI agent (UC) in Jacksonville was working in an undercover capacity on a particular social media application (app) to identify individuals who were attempting to sexually exploit children using the internet. The UC joined an online public chatroom on the app posing as an adult with access to a child. App user “timkw37138,” who was later identified as Morris, posted within this public group – “Hi all. 44 very well hung male in Florida. My PM is open.” Later that day, the UC and Morris began texting using the private messaging feature of the app. Morris typed, “I just love stroking to guys [sic] daughters,” and stated that his favorite age is “prob 13-15 give or take a couple years neither side.”

    On November 22, 2023, when asked to verify if he was “legit,” Morris sent the UC a sexually explicit photo of himself. Five minutes later, Morris distributed two videos to the UC depicting minors being sexually abused. During another online conversation on November 27, 2023, Morris sent the UC another sexually explicit photo of himself taken at his residence.

    After further investigation, FBI agents arrested Morris. During a search incident to his arrest, agents seized Morris’s cellphone which contained several sexually explicit photos of Morris that he had taken while at his home that were consistent with those sent to the UC. During an interview with law enforcement, Morris admitted having the “timkw37138” user account on the app for over five years.   

    This case was investigated by the Federal Bureau of Investigation in Jacksonville and West Palm Beach, with assistance from the Boynton Beach Police Department. It was prosecuted by Assistant United States Attorney D. Rodney Brown.

    It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. 

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  • MIL-OSI: Columbia Financial, Inc. Announces Financial Results for the Fourth Quarter and Year Ended December 31, 2024

    Source: GlobeNewswire (MIL-OSI)

    FAIR LAWN, N.J., Jan. 28, 2025 (GLOBE NEWSWIRE) — Columbia Financial, Inc. (the “Company”) (NASDAQ: CLBK), the mid-tier holding company for Columbia Bank (“Columbia”), reported a net loss of $21.2 million, or $0.21 per basic and diluted share, for the quarter ended December 31, 2024, as compared to net income of $6.6 million, or $0.06 per basic and diluted share, for the quarter ended December 31, 2023. The net loss for the quarter ended December 31, 2024 reflected lower non-interest income mainly due to the previously disclosed balance sheet repositioning transaction. As part of the Company’s strategy to improve future earnings and expand its net interest margin, the Company sold $352.3 million of debt securities available for sale during the fourth quarter of 2024, and the proceeds from the sale were used to fund loan growth of $72.9 million, purchase $78.1 million of higher yielding debt securities and prepay $170.0 million of higher cost borrowings. This balance sheet repositioning transaction resulted in a pre-tax loss on the sale of securities and extinguishment of debt of $37.9 million. The quarter ended December 31, 2024 results also reflected a higher provision for credit losses, partially offset by higher net interest income, mainly due to an increase in interest income, lower non-interest expense and lower income tax expense. For the quarter ended December 31, 2024, the Company reported core net income of $11.4 million, an increase of $1.3 million, or 12.4%, compared to core net income of $10.1 million for the quarter ended December 31, 2023. The benefit of the balance sheet repositioning transaction was modest during the fourth quarter, as the settlement of the transaction occurred late in the quarter. (Refer to “Reconciliation of GAAP to Non-GAAP Financial Measures” for a reconciliation of GAAP net income to core net income.)

    For the year ended December 31, 2024, the Company reported a net loss of $11.7 million, or $0.11 per basic and diluted share, as compared to net income of $36.1 million, or $0.35 per basic and diluted share, for the year ended December 31, 2023. The year ended December 31, 2024 reflected lower net interest income, mainly due to an increase in interest expense, higher provision for credit losses and lower non-interest income due to loss on securities transactions resulting from the balance sheet repositioning transaction described above, partially offset by lower non-interest expense and lower income tax expense. Non-interest income for the year ended December 31, 2024 included a $34.6 million loss on the sale of securities and non-interest expense included a $3.4 million loss on extinguishment of debt.

    Thomas J. Kemly, President and Chief Executive Officer commented: “The Company maintained a strong balance sheet and capital position, which will allow us to benefit from an improving operating environment. Additionally, our fourth quarter repositioning strategy should result in improved future earnings and net interest margin. We will continue to examine and implement prudent strategies that we believe will build a foundation for the future success of the Company and increased profitability.”

    Results of Operations for the Three Months Ended December 31, 2024 and December 31, 2023

    A net loss of $21.2 million was recorded for the quarter ended December 31, 2024, a decrease of $27.8 million, compared to net income of $6.6 million for the quarter ended December 31, 2023. The decrease in net income was primarily attributable to a $35.0 million decrease in non-interest income, and a $1.7 million increase in provision for credit losses, partially offset by a $1.1 million increase in net interest income, a $1.4 million decrease in non-interest expense, and a $6.4 million decrease in income tax expense.

    Net interest income was $46.4 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 2.4%, from $45.3 million for the quarter ended December 31, 2023. The increase in net interest income was primarily attributable to a $6.1 million increase in interest income partially offset by a $5.0 million increase in interest expense on deposits and borrowings. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields. Market interest rates increased 100 basis points throughout the 2023 period and were subsequently reduced 100 basis points during the last four months of 2024. The increase in interest expense on deposits was driven by the higher rate environment coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products throughout the majority of the 2024 fiscal year. However, during the fourth quarter, competitive pressures eased, and deposits became easier to attract, resulting in a reduced cost of deposits. The decrease in interest expense on borrowings was also impacted by the lower interest rates for new borrowings, along with a decrease in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $84,000 for the quarter ended December 31, 2024, compared to $419,000 for the quarter ended December 31, 2023.

    The average yield on loans for the quarter ended December 31, 2024 increased 22 basis points to 4.88%, as compared to 4.66% for the quarter ended December 31, 2023, as interest income was influenced by the interest rate increases that occurred in 2023 and loan growth. The average yield on securities for the quarter ended December 31, 2024 increased 41 basis points to 2.99%, as compared to 2.58% for the quarter ended December 31, 2023, as new securities purchased during 2024 were at higher interest rates. The average yield on other interest-earning assets for the quarter ended December 31, 2024 increased 36 basis points to 6.00%, as compared to 5.64% for the quarter ended December 31, 2023, due to an increase in the average balance of higher yielding Federal Home Loan Bank stock, as compared to average cash balances, which decreased in the 2024 period.

    Total interest expense was $67.2 million for the quarter ended December 31, 2024, an increase of $5.0 million, or 8.0%, from $62.2 million for the quarter ended December 31, 2023. The increase in interest expense was primarily attributable to a 37 basis point increase in the average cost of interest-bearing deposits, coupled with an increase in the average balance of interest-bearing deposits, partially offset by a 31 basis point decrease in the average cost of borrowings, coupled with a decrease in the average balance of borrowings. Interest expense on deposits increased $8.5 million or 19.6%, and interest expense on borrowings decreased $3.5 million, or 18.8%.

    The Company’s net interest margin for the quarter ended December 31, 2024 increased 3 basis points to 1.88%, when compared to 1.85% for the quarter ended December 31, 2023. The weighted average yield on interest-earning assets increased 22 basis points to 4.61% for the quarter ended December 31, 2024 as compared to 4.39% for the quarter ended December 31, 2023. The average cost of interest-bearing liabilities increased 20 basis points to 3.38% for the quarter ended December 31, 2024 as compared to 3.18% for the quarter ended December 31, 2023. The net interest margin increased for the quarter ended December 31, 2024, as the increase in the average yield on interest-earning assets slightly outweighed the average cost of interest-bearing liabilities.

    The provision for credit losses for the quarter ended December 31, 2024 was $2.9 million, an increase of $1.7 million, from $1.2 million for the quarter ended December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs totaling $1.4 million and an increase in loan performance qualitative factors.

    Non-interest income was $(23.7) million for the quarter ended December 31, 2024, a decrease of $35.0 million, or 310.8%, from $11.2 million for the quarter ended December 31, 2023. The decrease was primarily attributable to the loss on securities transactions of $34.6 million resulting from the balance sheet repositioning transaction and a decrease in bank-owned life insurance income of $2.4 million, attributable to death benefits in 2023, partially offset by a $1.7 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities.

    Non-interest expense was $46.6 million for the quarter ended December 31, 2024, a decrease of $1.4 million, or 2.9%, from $48.0 million for the quarter ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $1.9 million and a decrease in federal deposit insurance premiums of $3.2 million, partially offset by an increase in loss on the extinguishment of debt of $3.1 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The decrease in federal deposit insurance premiums was due to the 2023 quarter including a one-time Federal Deposit Insurance Corporation special assessment recorded in December 2023. During the quarter ended December 31, 2024, the Company prepaid $200.0 million in FHLB borrowings, inclusive of the $170.0 million as part of a balance sheet repositioning transaction which resulted in a $3.4 million loss on the extinguishment of debt.

    Income tax benefit was $5.5 million for the quarter ended December 31, 2024, a decrease of $6.4 million, as compared to income tax expense of $865,000 for the quarter ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 20.7% and 11.6% for the quarters ended December 31, 2024 and 2023, respectively.

    Results of Operations for the Years Ended December 31, 2024 and December 31, 2023

    A net loss of $11.7 million was recorded for the year ended December 31, 2024, a decrease of $47.7 million, compared to net income of $36.1 million for the year ended December 31, 2023. The decrease in net income was primarily attributable to a $27.9 million decrease in net interest income, a $9.7 million increase in provision for credit losses and a $25.5 million decrease in non-interest income, partially offset by a $1.1 million decrease in non-interest expense, and a $14.2 million decrease in income tax expense.

    Net interest income was $178.0 million for the year ended December 31, 2024, a decrease of $27.9 million, or 13.5%, from $205.9 million for the year ended December 31, 2023. The decrease in net interest income was primarily attributable to an $84.3 million increase in interest expense on deposits and borrowings, partially offset by a $56.4 million increase in interest income. The increase in interest income was primarily due to an increase in the average balance of total interest-earning assets coupled with an increase in average yields due to market interest rate increases in 2023. The increase in interest expense on deposits and borrowings was driven by these same rate increases coupled with intense competition for deposits in the market and the repricing of existing deposits into higher cost products along with higher balances. The increase in interest expense on borrowings was also impacted by the increase in interest rates for new borrowings along with an increase in the average balance of borrowings. Prepayment penalties, which are included in interest income on loans, totaled $960,000 for the year ended December 31, 2024, compared to $817,000 for the year ended December 31, 2023.

    The average yield on loans for the year ended December 31, 2024 increased 46 basis points to 4.90%, as compared to 4.44% for the year ended December 31, 2023, as interest income increased due to rising rates and loan growth. The average yield on securities for the year ended December 31, 2024 increased 40 basis points to 2.86%, as compared to 2.46% for the year ended December 31, 2023 as $124.6 million of higher yielding securities were purchased, and a number of adjustable rate securities tied to various indexes continued to reprice higher during the year. The average yield on other interest-earning assets for the year ended December 31, 2024 increased 73 basis points to 6.27%, as compared to 5.54% for the year ended December 31, 2023, due to the rise in interest rates, as noted above.

    Total interest expense was $273.4 million for the year ended December 31, 2024, an increase of $84.3 million, or 44.6%, from $189.1 million for the year ended December 31, 2023. The increase in interest expense was primarily attributable to a 109 basis point increase in the average cost of interest-bearing deposits and an increase in the average balance of deposits, coupled with an increase in interest on borrowings of $7.1 million due to an 11 basis point increase in the cost of total borrowings and an increase in the average balance of borrowings.

    The Company’s net interest margin for the year ended December 31, 2024 decreased 34 basis points to 1.82%, when compared to 2.16% for the year ended December 31, 2023. The weighted average yield on interest-earning assets for the year ended December 31, 2024 increased 47 basis points to 4.61%, as compared to 4.14% for the year ended December 31, 2023. The average cost of interest-bearing liabilities increased 92 basis points to 3.44% for the year ended December 31, 2024 as compared to 2.52% for the year ended December 31, 2023. The increase in yields for the year ended December 31, 2024 was due to the impact of market rate increases between periods, with rates decreasing just prior to the fourth quarter of 2024. The net interest margin decreased for the year ended December 31, 2024, as the increase in the average cost of interest-bearing liabilities outweighed the increase in the average yield on interest-earning assets.

    The provision for credit losses for the year ended December 31, 2024 was $14.5 million, an increase of $9.7 million, from $4.8 million for the year ended December 31, 2023. The increase in provision for credit losses during the year was primarily due to net charge-offs totaling $9.6 million and an increase in loan performance qualitative factors.

    Non-interest income was $1.9 million for the year ended December 31, 2024, a decrease of $25.5 million, or 93.1%, from $27.4 million for the year ended December 31, 2023. The decrease was primarily attributable to an increase in the loss on securities transactions of $25.0 million, and a decrease in bank-owned life insurance income of $2.8 million, attributable to death benefits in 2023, partially offset by a $1.9 million increase in the fair value of Federal Home Loan Mortgage Corporation and Federal National Mortgage Association preferred stock included in equity securities.

    Non-interest expense was $181.3 million for the year ended December 31, 2024, a decrease of $1.1 million, or 0.6%, from $182.4 million for the year ended December 31, 2023. The decrease was primarily attributable to a decrease in compensation and employee benefits expense of $11.4 million, partially offset by an increase in professional fee of $4.3 million, an increase in merger-related expenses of $1.1 million and an increase in loss on extinguishment of debt of $3.1 million, resulting primarily from the repositioning transaction, and an increase in other non-interest expense of $2.0 million. The decrease in compensation and employee benefits expense was the result of lower incentive compensation and a workforce reduction related to cost cutting strategies implemented during 2023 and 2024. The increase in professional fees was primarily related to an increase in legal, regulatory and compliance-related costs while the increase in other non-interest expense related to swap transactions. During the quarter ended December 31, 2024, the Company prepaid $170.0 million of FHLB borrowings as part of the previously discussed balance sheet repositioning transaction which resulted in a $3.3 million loss on the extinguishment of debt.

    Income tax benefit was $4.3 million for the year ended December 31, 2024, a decrease of $14.2 million, as compared to income tax expense of $10.0 million for the year ended December 31, 2023, mainly due to a decrease in pre-tax income. The Company’s effective tax rate was 26.8% and 21.6% for the years ended December 31, 2024 and 2023, respectively.

    Balance Sheet Summary

    Total assets decreased $170.1 million, or 1.6%, to $10.5 billion at December 31, 2024 as compared to $10.6 billion at December 31, 2023. The decrease in total assets was primarily attributable to a decrease in cash and cash equivalents of $134.0 million, a decrease in debt securities available for sale of $67.6 million, and a decrease in Federal Home Loan Bank stock of $20.6 million, partially offset by an increase in loans receivable, net, of $37.5 million and an increase in other assets of $15.6 million.

    Cash and cash equivalents decreased $134.0 million, or 31.7%, to $289.2 million at December 31, 2024 from $423.2 million at December 31, 2023. The decrease was primarily attributable to purchases of securities of $446.2 million, a decrease in borrowings of $448.1 million, and repurchases of common stock under our stock repurchase program of $5.9 million, partially offset by proceeds from the sale of securities of $321.2 million, principal repayments on securities of $185.6 million, and repayments on loans receivable, and an increase in total deposits of $249.6 million.

    Debt securities available for sale decreased $67.6 million, or 6.2%, to $1.0 billion at December 31, 2024 from $1.1 billion at December 31, 2023. The decrease was attributable to sales of securities with an amortized cost of $357.1 million which resulted in a realized loss of $35.9 million, and repayments on securities of $140.5 million, which was partially offset by purchases of securities of $404.7 million and a decrease in the gross unrealized loss on securities of $34.9 million. The Company sold predominantly fixed rate, low-yielding debt securities and used the proceeds to repay high costing borrowings and purchase higher-yielding debt securities to improve future net interest rate margin.

    Loans receivable, net, increased $37.5 million, or 0.5%, to $7.9 billion at December 31, 2024 from $7.8 billion at December 31, 2023. Multifamily loans, construction loans, and commercial business loans increased $51.5 million, $30.5 million, and $89.0 million, respectively, partially offset by decreases in one-to-four family real estate loans, commercial real estate loans and home equity loans and advances of $81.9 million, $37.2 million and $7.6 million, respectively. The allowance for credit losses for loans increased $4.9 million to $60.0 million at December 31, 2024 from $55.1 million at December 31, 2023. During the year ended December 31, 2024, the increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors.

    Federal Home Loan Bank stock decreased $20.6 million, or 25.5%, to $60.4 million at December 31, 2024 from $81.0 million at December 31, 2023. The decrease was due to the redemption of stock required upon repaying FHLB borrowings.

    Other assets increased $15.6 million, or 5.1%, to $324.0 million at December 31, 2024 from $308.4 million at December 31, 2023, primarily due to a $14.3 million increase in the Company’s pension plan balance, as the return on plan assets outpaced the growth in the plan’s obligations.

    Total liabilities decreased $210.1 million, or 2.2%, to $9.4 billion at December 31, 2024 from $9.6 billion at December 31, 2023. The decrease was primarily attributable to a decrease in borrowings of $448.1 million, or 29.3%, partially offset by an increase in total deposits of $249.6 million, or 3.2%. The $448.1 million decrease in borrowings was primarily driven by a net decrease in long-term borrowings of $170.0 million, coupled with a decrease in short-term borrowings of $237.8 million. The decrease in long-term borrowings was mainly attributable to the prepayment of $170.0 million of long-term borrowings as part of the balance sheet repositioning transaction as described above. The increase in total deposits primarily consisted of increases in non-interest-bearing and interest-bearing demand deposits and certificates of deposit of $669,000, $54.8 million, and $255.8 million, respectively, partially offset by decreases in money market and savings and club accounts of $13.8 million and $47.8 million, respectively.

    Total stockholders’ equity increased $40.0 million, or 3.8%, to $1.1 billion at December 31, 2024 from $1.0 billion at December 31, 2023. The increase in total stockholders’ equity was primarily attributable to the recognition of $8.0 million in stock based compensation expense and an increase of $48.2 million in other comprehensive income, which includes changes in unrealized losses on debt securities available for sale and unrealized gains on swap contracts, net of taxes. These increases were partially offset by a net loss of $11.7 million, and the repurchase of 365,116 shares of common stock at a cost of approximately $5.9 million, or $16.14 per share, under our stock repurchase program. Repurchases have been paused in order to retain capital.

    Asset Quality

    The Company’s non-performing loans at December 31, 2024 totaled $21.7 million, or 0.28% of total gross loans, as compared to $12.6 million, or 0.16% of total gross loans, at December 31, 2023. The $9.1 million increase in non-performing loans was primarily attributable to an increase in non-performing commercial business loans of $3.3 million and an increase in non-performing one-to-four family real estate loans of $5.6 million. The increase in non-performing commercial business loans primarily consists of two loans totaling $6.4 million at December 31, 2024, partially offset by the charge-off of a $3.7 million loan to a technology company during 2024. The increase in non-performing one-to-four family real estate loans was due to an increase in the number of loans from 17 non-performing loans at December 31, 2023 to 32 loans at December 31, 2024. Non-performing assets as a percentage of total assets totaled 0.22% at December 31, 2024 as compared to 0.12% at December 31, 2023.

    For the quarter ended December 31, 2024, net charge-offs totaled $1.4 million, as compared to $173,000 in net charge-offs recorded for the quarter ended December 31, 2023. For the year ended December 31, 2024, net charge-offs totaled $9.6 million, as compared to $2.5 million in net charge-offs recorded for the year ended December 31, 2023. Net charge-offs for the year ended December 31, 2024 included charge-offs related to 17 commercial business loans totaling $9.2 million. Recoveries on previously charged-off loans for the quarter ended December 31, 2024, and the year ended December 31, 2024, totaled approximately $88,000 and $1.4 million, respectively.

    The Company’s allowance for credit losses on loans was $60.0 million, or 0.76% of total gross loans, at December 31, 2024, compared to $55.1 million, or 0.70% of total gross loans, at December 31, 2023. The increase in the allowance for credit losses for loans was primarily due to net charge-offs of $9.6 million and an increase in loan performance qualitative factors.

    Additional Liquidity, Loan, and Deposit Information

    The Company services a diverse retail and commercial deposit base through its 69 branches. With over 215,000 accounts, the average deposit account balance was approximately $38,000 at December 31, 2024.

    Deposit balances are summarized as follows:

        At December 31, 2024   At September 30, 2024
        Balance   Weighted Average Rate   Balance   Weighted Average Rate
        (Dollars in thousands)
                     
    Non-interest-bearing demand   $ 1,438,030     — %   $ 1,406,152     — %
    Interest-bearing demand     2,021,312     2.19       1,980,298     2.41  
    Money market accounts     1,241,691     2.82       1,239,204     2.92  
    Savings and club deposits     652,501     0.75       649,858     0.79  
    Certificates of deposit     2,742,615     4.24       2,682,547     4.45  
    Total deposits   $ 8,096,149     2.47 %   $ 7,958,059     2.62 %

    The Company continues to maintain strong liquidity and capital positions. The Company had no outstanding borrowings from the Federal Reserve Discount Window at December 31, 2024. As of December 31, 2024, the Company had immediate access to approximately $2.7 billion of funding, with additional unpledged loan collateral available to pledge is approximately $2.1 billion.

    At December 31, 2024, the Company’s non-performing commercial real estate loans totaled $2.9 million, or 0.04%, of the total loans receivable loan portfolio balance.

    The following table presents multifamily real estate, owner occupied commercial real estate, and the components of investor owned commercial real estate loans included in the real estate loan portfolio.

        At December 31, 2024
        (Dollars in thousands)
        Balance   % of Gross Loans   Weighted Average Loan to Value Ratio   Weighted Average Debt Service Coverage
    Multifamily Real Estate   $ 1,460,641     18.4 %   58.0 %   1.59 x
                       
    Owner Occupied Commercial Real Estate   $ 688,341     8.7 %   53.3 %   2.22 x
                       
    Investor Owned Commercial Real Estate:                  
    Retail / Shopping centers   $ 506,544     6.4 %   51.6 %   1.50 x
    Mixed Use     214,148     2.7     57.3     1.58  
    Industrial / Warehouse     383,585     4.8     54.7     1.69  
    Non-Medical Office     193,569     2.4     50.8     1.65  
    Medical Office     120,381     1.5     58.5     1.46  
    Single Purpose     96,907     1.2     52.3     3.13  
    Other     136,408     1.7     47.8     1.76  
    Total   $ 1,651,542     20.9 %   53.2 %   1.69  
                       
    Total Multifamily and Commercial Real Estate Loans   $ 3,800,524     48.0 %   55.1 %   1.75 x

    At December 31, 2024, the Company had less than $1.0 million in loan exposure to office or rent stabilized multifamily loans in New York City.

    Annual Meeting of Stockholders

    On January 28, 2025, the Company also announced that its annual meeting of stockholders will be held on June 5, 2025.

    About Columbia Financial, Inc.

    The consolidated financial results include the accounts of Columbia Financial, Inc., its wholly-owned subsidiary Columbia Bank (the “Bank”) and the Bank’s wholly-owned subsidiaries. Columbia Financial, Inc. is a Delaware corporation organized as Columbia Bank’s mid-tier stock holding company. Columbia Financial, Inc. is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey that operates 69 full-service banking offices and offers traditional financial services to consumers and businesses in its market area.

    Forward-Looking Statements

    Certain statements herein constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by words such as “believes,” “will,” “would,” “expects,” “projects,” “may,” “could,” “developments,” “strategic,” “launching,” “opportunities,” “anticipates,” “estimates,” “intends,” “plans,” “targets” and similar expressions. These statements are based upon the current beliefs and expectations of the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements as a result of numerous factors. Factors that could cause such differences to exist include, but are not limited to, adverse conditions in the capital and debt markets and the impact of such conditions on the Company’s business activities; changes in interest rates, higher inflation and their impact on national and local economic conditions; changes in monetary and fiscal policies of the U.S. Treasury, the Board of Governors of the Federal Reserve System and other governmental entities; the impact of legal, judicial and regulatory proceedings or investigations, competitive pressures from other financial institutions; the effects of general economic conditions on a national basis or in the local markets in which the Company operates, including changes that adversely affect a borrowers’ ability to service and repay the Company’s loans; the effect of acts of terrorism, war or pandemics,, including on our credit quality and business operations, as well as its impact on general economic and financial market conditions; changes in the value of securities in the Company’s portfolio; changes in loan default and charge-off rates; fluctuations in real estate values; the adequacy of loan loss reserves; decreases in deposit levels necessitating increased borrowing to fund loans and securities; legislative changes and changes in government regulation; changes in accounting standards and practices; the risk that goodwill and intangibles recorded in the Company’s consolidated financial statements will become impaired; cyber-attacks, computer viruses and other technological risks that may breach the security of our systems and allow unauthorized access to confidential information; the inability of third party service providers to perform; demand for loans in the Company’s market area; the Company’s ability to attract and maintain deposits and effectively manage liquidity; risks related to the implementation of acquisitions, dispositions, and restructurings; the successful implementation of our December 2024 balance sheet repositioning transaction; the risk that the Company may not be successful in the implementation of its business strategy, or its integration of acquired financial institutions and businesses, and changes in assumptions used in making such forward-looking statements which are subject to numerous risks and uncertainties, including but not limited to, those set forth in Item 1A of the Company’s Annual Report on Form 10-K and those set forth in the Company’s Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, all as filed with the Securities and Exchange Commission (the “SEC”), which are available at the SEC’s website, www.sec.gov. Should one or more of these risks materialize or should underlying beliefs or assumptions prove incorrect, the Company’s actual results could differ materially from those discussed. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any obligation to publicly update or revise any forward-looking statements to reflect changes in underlying assumptions or factors, new information, future events or other changes, except as required by law.

    Non-GAAP Financial Measures

    Reported amounts are presented in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release also contains certain supplemental non-GAAP information that the Company’s management uses in its analysis of the Company’s financial results. Specifically, the Company provides measures based on what it believes are its operating earnings on a consistent basis and excludes material non-routine operating items which affect the GAAP reporting of results of operations. The Company’s management believes that providing this information to analysts and investors allows them to better understand and evaluate the Company’s core financial results for the periods presented. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names.

    The Company also provides measurements and ratios based on tangible stockholders’ equity. These measures are commonly utilized by regulators and market analysts to evaluate a company’s financial condition and, therefore, the Company’s management believes that such information is useful to investors.

    A reconciliation of GAAP to non-GAAP financial measures are included at the end of this press release. See “Reconciliation of GAAP to Non-GAAP Financial Measures”.

     
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Financial Condition
    (In thousands)
     
        December 31,
          2024       2023  
    Assets   (Unaudited)    
    Cash and due from banks   $ 289,113     $ 423,140  
    Short-term investments     110       109  
    Total cash and cash equivalents     289,223       423,249  
             
    Debt securities available for sale, at fair value     1,025,946       1,093,557  
    Debt securities held to maturity, at amortized cost (fair value of $350,153, and $357,177 at December 31, 2024 and 2023, respectively)     392,840       401,154  
    Equity securities, at fair value     6,673       4,079  
    Federal Home Loan Bank stock     60,387       81,022  
             
    Loans receivable     7,916,928       7,874,537  
    Less: allowance for credit losses     59,958       55,096  
    Loans receivable, net     7,856,970       7,819,441  
             
    Accrued interest receivable     40,383       39,345  
    Office properties and equipment, net     81,772       83,577  
    Bank-owned life insurance     274,908       268,362  
    Goodwill and intangible assets     121,008       123,350  
    Other real estate owned     1,334       —  
    Other assets     324,049       308,432  
    Total assets   $ 10,475,493     $ 10,645,568  
             
    Liabilities and Stockholders’ Equity        
    Liabilities:        
    Deposits   $ 8,096,149     $ 7,846,556  
    Borrowings     1,080,600       1,528,695  
    Advance payments by borrowers for taxes and insurance     45,453       43,509  
    Accrued expenses and other liabilities     172,915       186,473  
    Total liabilities     9,395,117       9,605,233  
             
    Stockholders’ equity:        
    Total stockholders’ equity     1,080,376       1,040,335  
    Total liabilities and stockholders’ equity   $ 10,475,493     $ 10,645,568  
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Consolidated Statements of Income
    (In thousands, except per share data)
     
        Three Months Ended December 31,   Year Ended December 31,
          2024       2023       2024       2023  
    Interest income:   (Unaudited)   (Unaudited)    
    Loans receivable   $ 96,202     $ 91,744     $ 382,266     $ 343,770  
    Debt securities available for sale and equity securities     9,793       7,077       36,411       28,120  
    Debt securities held to maturity     2,479       2,370       9,966       9,708  
    Federal funds and interest-earning deposits     3,309       4,828       15,181       8,188  
    Federal Home Loan Bank stock dividends     1,843       1,531       7,602       5,192  
    Total interest income     113,626       107,550       451,426       394,978  
    Interest expense:                
    Deposits     51,943       43,429       202,383       125,162  
    Borrowings     15,256       18,782       71,061       63,940  
    Total interest expense     67,199       62,211       273,444       189,102  
                     
    Net interest income     46,427       45,339       177,982       205,876  
                     
    Provision for credit losses     2,876       1,155       14,451       4,787  
                     
    Net interest income after provision for credit losses     43,551       44,184       163,531       201,089  
                     
    Non-interest income:                
    Demand deposit account fees     1,809       1,330       6,507       5,145  
    Bank-owned life insurance     2,066       4,456       7,319       10,126  
    Title insurance fees     570       560       2,505       2,400  
    Loan fees and service charges     1,193       1,144       4,483       4,510  
    Loss on securities transactions     (34,595 )     —       (35,851 )     (10,847 )
    Change in fair value of equity securities     2,169       446       2,594       695  
    Gain on sale of loans     81       154       906       1,214  
    Other non-interest income     2,991       3,159       13,431       14,136  
    Total non-interest income     (23,716 )     11,249       1,894       27,379  
                     
    Non-interest expense:                
    Compensation and employee benefits     26,579       28,463       109,489       120,846  
    Occupancy     5,861       5,590       23,482       22,927  
    Federal deposit insurance premiums     1,829       5,015       7,581       8,639  
    Advertising     457       498       2,510       2,805  
    Professional fees     2,567       3,083       14,164       9,824  
    Data processing and software expenses     3,572       4,154       15,578       15,039  
    Merger-related expenses     928       326       1,665       606  
    Loss on extinguishment of debt     3,447       300       3,447       300  
    Other non-interest expense     1,356       570       3,419       1,431  
    Total non-interest expense     46,596       47,999       181,335       182,417  
                     
    (Loss) income before income tax (benefit) expense     (26,761 )     7,434       (15,910 )     46,051  
                     
     Income tax (benefit) expense     (5,538 )     865       (4,257 )     9,965  
                     
    Net (loss) income   $ (21,223 )   $ 6,569     $ (11,653 )   $ 36,086  
                     
    (Loss) earnings per share-basic   $ (0.21 )   $ 0.06     $ (0.11 )   $ 0.35  
    (Loss) earnings per share-diluted   $ (0.21 )   $ 0.06     $ (0.11 )   $ 0.35  
    Weighted average shares outstanding-basic     101,686,108       101,656,890       101,676,758       102,656,388  
    Weighted average shares outstanding-diluted     101,945,750       101,817,194       101,839,507       102,894,969  
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
     
        For the Three Months Ended December 31,
          2024       2023  
        Average Balance   Interest and Dividends   Yield / Cost   Average Balance   Interest and Dividends   Yield / Cost
        (Dollars in thousands)
    Interest-earnings assets:                        
    Loans   $ 7,839,416     $ 96,202     4.88 %   $ 7,816,272     $ 91,744     4.66 %
    Securities     1,635,028       12,272     2.99 %     1,453,863       9,447     2.58 %
    Other interest-earning assets     341,393       5,152     6.00 %     447,369       6,359     5.64 %
    Total interest-earning assets     9,815,837       113,626     4.61 %     9,717,504       107,550     4.39 %
    Non-interest-earning assets     874,522               854,857          
    Total assets   $ 10,690,359             $ 10,572,361          
                             
    Interest-bearing liabilities:                        
    Interest-bearing demand   $ 2,027,003     $ 13,686     2.69 %   $ 2,000,406     $ 12,308     2.44 %
    Money market accounts     1,235,421       7,630     2.46 %     1,119,290       8,962     3.18 %
    Savings and club deposits     649,686       1,209     0.74 %     714,664       846     0.47 %
    Certificates of deposit     2,696,740       29,418     4.34 %     2,416,773       21,313     3.50 %
    Total interest-bearing deposits     6,608,850       51,943     3.13 %     6,251,133       43,429     2.76 %
    FHLB advances     1,298,686       15,102     4.63 %     1,494,794       18,592     4.93 %
    Notes payable     —       —     — %     916       23     9.96 %
    Junior subordinated debentures     7,036       154     8.71 %     7,013       167     9.45 %
    Total borrowings     1,305,722       15,256     4.65 %     1,502,723       18,782     4.96 %
    Total interest-bearing liabilities     7,914,572     $ 67,199     3.38 %     7,753,856     $ 62,211     3.18 %
                             
    Non-interest-bearing liabilities:                        
    Non-interest-bearing deposits     1,460,125               1,441,005          
    Other non-interest-bearing liabilities     241,582               247,545          
    Total liabilities     9,616,279               9,442,406          
    Total stockholders’ equity     1,074,080               1,129,955          
    Total liabilities and stockholders’ equity   $ 10,690,359             $ 10,572,361          
                             
    Net interest income       $ 46,427             $ 45,339      
    Interest rate spread           1.23 %           1.21 %
    Net interest-earning assets   $ 1,901,265             $ 1,963,648          
    Net interest margin           1.88 %           1.85 %
    Ratio of interest-earning assets to interest-bearing liabilities     124.02 %             125.32 %        
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Average Balances/Yields
     
        For the Years Ended December 31,
          2024       2023  
        Average Balance   Interest and Dividends   Yield / Cost   Average Balance   Interest and Dividends   Yield / Cost
        (Dollars in thousands)
    Interest-earnings assets:                        
    Loans   $ 7,801,939     $ 382,266     4.90 %   $ 7,748,096     $ 343,770     4.44 %
    Securities     1,622,519       46,377     2.86 %     1,540,726       37,828     2.46 %
    Other interest-earning assets     363,370       22,783     6.27 %     241,520       13,380     5.54 %
    Total interest-earning assets     9,787,828     $ 451,426     4.61 %     9,530,342     $ 394,978     4.14 %
    Non-interest-earning assets     865,684               840,215          
    Total assets   $ 10,653,512             $ 10,370,557          
                             
    Interest-bearing liabilities:                        
    Interest-bearing demand   $ 1,986,215     $ 55,360     2.79 %   $ 2,183,333     $ 37,774     1.73 %
    Money market accounts     1,235,495       32,977     2.67 %     951,174       24,296     2.55 %
    Savings and club deposits     667,836       5,130     0.77 %     793,303       2,231     0.28 %
    Certificates of deposit     2,587,360       108,916     4.21 %     2,229,042       60,861     2.73 %
    Total interest-bearing deposits     6,476,906       202,383     3.12 %     6,156,852       125,162     2.03 %
    FHLB advances     1,454,674       70,418     4.84 %     1,315,401       62,398     4.74 %
    Notes payable     —       —     — %     22,780       918     4.03 %
    Junior subordinated debentures     7,023       640     9.11 %     7,054       624     8.85 %
    Other borrowings     55       3     5.45 %     —       —     — %
    Total borrowings     1,461,752       71,061     4.86 %     1,345,235       63,940     4.75 %
    Total interest-bearing liabilities     7,938,658     $ 273,444     3.44 %     7,502,087     $ 189,102     2.52 %
                             
    Non-interest-bearing liabilities:                        
    Non-interest-bearing deposits     1,420,104               1,539,354          
    Other non-interest-bearing liabilities     242,290               231,018          
    Total liabilities     9,601,052               9,272,459          
    Total stockholders’ equity     1,052,460               1,098,098          
    Total liabilities and stockholders’ equity   $ 10,653,512             $ 10,370,557          
                             
    Net interest income       $ 177,982             $ 205,876      
    Interest rate spread           1.17 %           1.62 %
    Net interest-earning assets   $ 1,849,170             $ 2,028,255          
    Net interest margin           1.82 %           2.16 %
    Ratio of interest-earning assets to interest-bearing liabilities     123.29 %             127.04 %        
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Components of Net Interest Rate Spread and Margin
     
        Average Yields/Costs by Quarter
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
    Yield on interest-earning assets:                    
    Loans   4.88 %   5.00 %   4.93 %   4.79 %   4.66 %
    Securities   2.99     2.90     2.89     2.65     2.58  
    Other interest-earning assets   6.00     6.72     6.30     6.06     5.64  
    Total interest-earning assets   4.61 %   4.70 %   4.64 %   4.50 %   4.39 %
                         
    Cost of interest-bearing liabilities:                    
    Total interest-bearing deposits   3.13 %   3.21 %   3.14 %   3.02 %   2.76 %
    Total borrowings   4.65     4.87     4.92     4.98     4.96  
    Total interest-earning liabilities   3.38 %   3.52 %   3.49 %   3.38 %   3.18 %
                         
    Interest rate spread   1.23 %   1.18 %   1.15 %   1.12 %   1.21 %
    Net interest margin   1.88 %   1.84 %   1.81 %   1.75 %   1.85 %
                         
    Ratio of interest-earning assets to interest-bearing liabilities   124.02 %   123.06 %   123.03 %   123.06 %   125.32 %
    COLUMBIA FINANCIAL, INC. AND SUBSIDIARIES
    Selected Financial Highlights
                         
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
                         
    SELECTED FINANCIAL RATIOS(1):                    
    Return on average assets   (0.79 )%   0.23 %   0.17 %   (0.04 )%   0.25 %
    Core return on average assets   0.42 %   0.23 %   0.20 %   0.02 %   0.38 %
    Return on average equity   (7.86 )%   2.32 %   1.77 %   (0.45 )%   2.31 %
    Core return on average equity   4.09 %   2.29 %   2.06 %   0.18 %   3.56 %
    Core return on average tangible equity   4.74 %   2.58 %   2.34 %   0.20 %   3.99 %
    Interest rate spread   1.23 %   1.18 %   1.15 %   1.12 %   1.21 %
    Net interest margin   1.88 %   1.84 %   1.81 %   1.75 %   1.85 %
    Non-interest income to average assets   (0.88 )%   0.33 %   0.35 %   0.28 %   0.42 %
    Non-interest expense to average assets   1.73 %   1.60 %   1.74 %   1.74 %   1.80 %
    Efficiency ratio   205.17 %   78.95 %   86.83 %   91.96 %   84.82 %
    Core efficiency ratio   73.68 %   79.14 %   85.34 %   88.39 %   76.93 %
    Average interest-earning assets to average interest-bearing liabilities   124.02 %   123.06 %   123.03 %   123.06 %   125.32 %
    Net charge-offs to average outstanding loans   0.07 %   0.14 %   0.03 %   0.26 %   0.01 %
                         
    (1) Ratios are annualized when appropriate.
    ASSET QUALITY:                    
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
        (Dollars in thousands)
                         
    Non-accrual loans   $ 21,701     $ 28,014     $ 25,281     $ 22,935     $ 12,618  
    90+ and still accruing     —       —       —       —       —  
    Non-performing loans     21,701       28,014       25,281       22,935       12,618  
    Real estate owned     1,334       1,974       1,974       —       —  
    Total non-performing assets   $ 23,035     $ 29,988     $ 27,255     $ 22,935     $ 12,618  
                         
    Non-performing loans to total gross loans     0.28 %     0.36 %     0.33 %     0.30 %     0.16 %
    Non-performing assets to total assets     0.22 %     0.28 %     0.25 %     0.22 %     0.12 %
    Allowance for credit losses on loans (“ACL”)   $ 59,958     $ 58,495     $ 57,062     $ 55,401     $ 55,096  
    ACL to total non-performing loans     276.29 %     208.81 %     225.71 %     241.56 %     436.65 %
    ACL to gross loans     0.76 %     0.75 %     0.73 %     0.71 %     0.70 %
    LOAN DATA:                    
        December 31, 2024   September 30, 2024   June 30, 2024   March 31, 2024   December 31, 2023
        (In thousands)  
    Real estate loans:                    
    One-to-four family   $ 2,710,937     $ 2,737,190     $ 2,764,177     $ 2,778,932     $ 2,792,833  
    Multifamily     1,460,641       1,399,000       1,409,316       1,429,369       1,409,187  
    Commercial real estate     2,339,883       2,312,759       2,316,252       2,318,178       2,377,077  
    Construction     473,573       510,439       462,880       437,566       443,094  
    Commercial business loans     622,000       586,447       554,768       538,260       533,041  
    Consumer loans:                    
    Home equity loans and advances     259,009       261,041       260,427       260,786       266,632  
    Other consumer loans     3,404       2,877       2,689       2,601       2,801  
    Total gross loans     7,869,447       7,809,753       7,770,509       7,765,692       7,824,665  
    Purchased credit deteriorated loans     11,686       11,795       12,150       14,945       15,089  
    Net deferred loan costs, fees and purchased premiums and discounts     35,795       35,642       36,352       34,992       34,783  
    Allowance for credit losses     (59,958 )     (58,495 )     (57,062 )     (55,401 )     (55,096 )
    Loans receivable, net   $ 7,856,970     $ 7,798,695     $ 7,761,949     $ 7,760,228     $ 7,819,441  
    CAPITAL RATIOS:        
        December 31,
        2024(1)   2023
    Company:        
    Total capital (to risk-weighted assets)   14.20 %   14.08 %
    Tier 1 capital (to risk-weighted assets)   13.40 %   13.32 %
    Common equity tier 1 capital (to risk-weighted assets)   13.31 %   13.23 %
    Tier 1 capital (to adjusted total assets)   10.02 %   10.04 %
             
    Columbia Bank:        
    Total capital (to risk-weighted assets)   14.41 %   14.02 %
    Tier 1 capital (to risk-weighted assets)   13.56 %   13.22 %
    Common equity tier 1 capital (to risk-weighted assets)   13.56 %   13.22 %
    Tier 1 capital (to adjusted total assets)   9.64 %   9.48 %
             
    (1) Estimated ratios at December 31, 2024.        
    Reconciliation of GAAP to Non-GAAP Financial Measures
             
    Book and Tangible Book Value per Share
        December 31,
          2024       2023  
        (Dollars in thousands)
    Total stockholders’ equity   $ 1,080,376     $ 1,040,335  
    Less: goodwill     (110,715 )     (110,715 )
    Less: core deposit intangible     (8,964 )     (11,155 )
    Total tangible stockholders’ equity   $ 960,697     $ 918,465  
             
    Shares outstanding     104,759,185       104,918,905  
             
    Book value per share   $ 10.31     $ 9.92  
    Tangible book value per share   $ 9.17     $ 8.75  
    Reconciliation of Core Net Income
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
        (In thousands)
    Net (loss) income   $ (21,223 )   $ 6,569     $ (11,653 )   $ 36,086  
    Add: loss on securities transactions, net of tax     28,952       —       30,082       9,249  
    Add: FDIC special assessment, net of tax     —       3,009       385       3,009  
    Add: severance expense from reduction in workforce, net of tax     —       —       67       1,390  
    Add: merger-related expenses, net of tax     777       288       1,468       529  
    Add: loss on extinguishment of debt, net of tax     2,885       265       2,885       265  
    Add: litigation expenses, net of tax     —       —       —       262  
    Core net income   $ 11,391     $ 10,131     $ 23,234     $ 50,790  
    Return on Average Assets
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
        (Dollars in thousands)
    Net (loss) income   $ (21,223 )   $ 6,569     $ (11,653 )   $ 36,086  
                     
    Average assets   $ 10,690,359     $ 10,572,361     $ 10,653,512     $ 10,370,557  
                     
    Return on average assets     (0.79 )%     0.25 %     (0.11 )%     0.35 %
                     
    Core net income   $ 11,391     $ 10,131     $ 23,234     $ 50,790  
                     
    Core return on average assets     0.42 %     0.38 %     0.22 %     0.49 %
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)    
                     
    Return on Average Equity
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
        (Dollars in thousands)
    Total average stockholders’ equity   $ 1,074,080     $ 1,129,955     $ 1,052,460     $ 1,098,098  
    Add: loss on securities transactions, net of tax     28,952       —       30,082       9,249  
    Add: FDIC special assessment, net of tax     —       3,009       385       3,009  
    Add: severance expense from reduction in workforce, net of tax     —       —       67       1,390  
    Add: merger-related expenses, net of tax     777       288       1,468       529  
    Add: loss on extinguishment of debt, net of tax     2,885       265       2,885       265  
    Add: litigation expenses, net of tax     —       —       —       262  
    Core average stockholders’ equity   $ 1,106,694     $ 1,133,517     $ 1,087,347     $ 1,112,802  
                     
    Return on average equity     (7.86 )%     2.31 %     (1.11 )%     3.29 %
                     
    Core return on core average equity     4.09 %     3.56 %     2.14 %     4.56 %
    Return on Average Tangible Equity
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
        (Dollars in thousands)
    Total average stockholders’ equity   $ 1,074,080     $ 1,129,955     $ 1,052,460     $ 1,098,098  
    Less: average goodwill     (110,715 )     (110,715 )     (110,715 )     (110,715 )
    Less: average core deposit intangible     (9,311 )     (11,524 )     (10,119 )     (12,398 )
    Total average tangible stockholders’ equity   $ 954,054     $ 1,007,716     $ 931,626     $ 974,985  
                     
    Core return on average tangible equity     4.74 %     3.99 %     2.49 %     5.21 %
    Reconciliation of GAAP to Non-GAAP Financial Measures (continued)    
                     
    Efficiency Ratios
        Three Months Ended December 31,   Years Ended December 31,
          2024       2023       2024       2023  
        (Dollars in thousands)
    Net interest income   $ 46,427     $ 45,339     $ 177,982     $ 205,876  
    Non-interest income     (23,716 )     11,249       1,894       27,379  
    Total income   $ 22,711     $ 56,588     $ 179,876     $ 233,255  
                     
    Non-interest expense   $ 46,596     $ 47,999     $ 181,335     $ 182,417  
                     
    Efficiency ratio     205.17 %     84.82 %     100.81 %     78.20 %
                     
    Non-interest income   $ (23,716 )   $ 11,249     $ 1,894     $ 27,379  
    Add: loss on securities transactions     34,595       —       35,851       10,847  
    Core non-interest income   $ 10,879     $ 11,249     $ 37,745     $ 38,226  
                     
    Non-interest expense   $ 46,596     $ 47,999     $ 181,335     $ 182,417  
    Less: FDIC special assessment     —       (3,840 )     (439 )     (3,840 )
    Less: severance expense from reduction in workforce     —       —       (74 )     (1,605 )
    Less: merger-related expenses     (928 )     (326 )     (1,665 )     (606 )
    Less: loss on extinguishment of debt     (3,447 )     (300 )     (3,447 )     (300 )
    Less: litigation expenses     —       —       —       (317 )
    Core non-interest expense   $ 42,221     $ 43,533     $ 175,710     $ 175,749  
                     
    Core efficiency ratio     73.68 %     76.93 %     81.45 %     72.00 %


    Columbia Financial, Inc.
    Investor Relations Department
    (833) 550-0717

    The MIL Network –

  • MIL-OSI: Enterprise Bancorp, Inc. Announces Fourth Quarter Financial Results

    Source: GlobeNewswire (MIL-OSI)

    Filed by Enterprise Bancorp, Inc.
    pursuant to Rule 425 under the Securities Act of 1933
    and deemed filed pursuant to Rule 14a-12
    under the Securities Exchange Act of 1934

    Subject Company: Enterprise Bancorp, Inc.
    SEC File No.: 001-33912
    Date: January 28, 2025

    LOWELL, Mass., Jan. 28, 2025 (GLOBE NEWSWIRE) — Enterprise Bancorp, Inc. (“Enterprise”) (NASDAQ: EBTC), parent of Enterprise Bank, announced its financial results for the three months ended December 31, 2024. Net income amounted to $10.7 million, or $0.86 per diluted common share, for the three months ended December 31, 2024, compared to $10.0 million, or $0.80 per diluted common share, for the three months ended September 30, 2024 and $7.9 million, or $0.64 per diluted common share, for the three months ended December 31, 2023.

    On December 9, 2024, Enterprise and Enterprise Bank announced the signing of a definitive merger agreement with Independent Bank Corp. (“Independent”) and its wholly owned subsidiary, Rockland Trust Company (“Rockland Trust”), pursuant to which Enterprise will merge with and into Independent and Enterprise Bank will merge into Rockland Trust. The proposed merger is expected to close in the second half of 2025, subject to customary closing conditions, including regulatory approvals and approval of Enterprise shareholders. No vote of Independent Bank Corp. shareholders is required.

    Selected financial results at or for the quarter ended December 31, 2024, compared to September 30, 2024, were as follows:

    • The returns on average assets and average equity were 0.89% and 11.82%, respectively.
    • Tax-equivalent net interest margin (non-GAAP) (“net interest margin”) was 3.29%, an increase of 7 basis points.
    • Total loans amounted to $3.98 billion, an increase of 3.2%.
    • Total deposits were relatively unchanged and amounted to $4.19 billion.
    • Wealth assets under management and administration amounted to $1.54 billion, an increase of 1.4%.

    Chief Executive Officer Steven Larochelle commented, “As we continue to work toward the upcoming completion of the proposed merger with Rockland Trust, I am pleased to announce that our team continued to deliver strong results in the fourth quarter. Loan growth was once again robust at 3.2% for the quarter while operating results were positively impacted by margin expansion as we benefited from the impact of Federal Reserve Bank interest rate cuts coupled with the flattening of the yield curve.”

    Executive Chairman & Founder George Duncan stated, “The news of our anticipated merger with Rockland Trust has been well received by our shareholders, customers and communities. The planning of our integration with them is going well and the anticipated synergies and cultural alignment of our two banks are being confirmed.”

    Mr. Duncan added, “I congratulate Steve, and the whole team, for another very successful quarter and year. This was our third straight year of 12% loan growth, and I believe this is a testament to our relationship-based sales and service culture partnered with our strong commitment to community outreach and involvement.”

    Net Interest Income

    Net interest income for the three months ended December 31, 2024, amounted to $38.5 million, an increase of $2.0 million, or 5%, compared to the three months ended December 31, 2023. The increase was due primarily to an increase in loan interest income of $7.8 million, partially offset by an increase in deposit interest expense of $3.7 million and a decrease in income on other interest-earning assets of $1.5 million.

    The increase in interest income during the fourth quarter of 2024, compared to the prior year quarter, was due primarily to loan growth and higher loan yields, while the increase in interest expense during the period was attributed primarily to an increase in certificates of deposit balances and higher market rates on deposits.

    Net Interest Margin

    Net interest margin for the three months ended December 31, 2024, September 30, 2024 and December 31, 2023, amounted to 3.29%, 3.22% and 3.29%, respectively.

    Three months ended – December 31, 2024, compared to December 31, 2023

    Net interest margin was positively impacted by loan growth and an increase in loan yields, offset by increases in average funding liabilities and funding costs as well as a decrease in the average balance of other interest-earning assets.

    The increase in interest-earning asset yields of 27 basis points was due primarily to loan repricing and originations at higher interest rates while the increase in funding costs of 29 basis points was driven by higher market rates and growth in certificate of deposit balances.

    Three months ended – December 31, 2024, compared to September 30, 2024

    The increase in net interest margin was due primarily to loan growth and a decrease in funding costs, partially offset by decreases in interest-earning asset yields and the average balance of other interest-earning assets.

    The decreases in funding costs of 10 basis points and interest-earning asset yields of 3 basis points were driven primarily by the 100 basis point reduction in the federal funds rate from September 2024 through December 2024. In addition, the decrease in other interest-earning assets resulted mainly from funding loan growth during the period.

    Provision for Credit Losses

    The provision for credit losses for the three-month periods ended December 31, 2024 and December 31, 2023, are presented below:

        Three months ended   Increase / (Decrease)
    (Dollars in thousands)   December 31, 
    2024    		   December 31, 
    2023
    Provision for credit losses on loans – collectively evaluated   $ 1,939     $ 1,132     $ 807  
    Provision for credit losses on loans – individually evaluated     (1,874 )     (27 )     (1,847 )
    Provision for credit losses on loans     65       1,105       (1,040 )
                 
    Provision for unfunded commitments     (171 )     1,388       (1,559 )
                 
    Provision for credit losses   $ (106 )   $ 2,493     $ (2,599 )
                             

    The decrease in the provision for credit losses of $2.6 million was due to net decreases in reserves on individually evaluated loans of $1.8 million and unfunded commitments of $1.6 million, partially offset by an increase in reserves on collectively evaluated loans of $807 thousand which was due primarily to loan growth.

    The decrease in reserves on individually evaluated loans was due primarily to two commercial relationships that experienced improvement in their collateral valuation during the period and the decrease in reserves for unfunded commitments resulted primarily by a decrease in off-balance sheet commitments that required a reserve.

    Non-Interest Income

    Non-interest income for the three months ended December 31, 2024, amounted to $5.6 million, an increase of $69 thousand, or 1%, compared to the three months ended December 31, 2023. The increase was due primarily to increases in wealth management fees, income on bank-owned life insurance and other income, partially offset by a decrease in gains on equity securities.

    Non-Interest Expense

    Non-interest expense for the three months ended December 31, 2024, amounted to $29.8 million, an increase of $1.6 million, or 6%, compared to the three months ended December 31, 2023. The increase was due primarily to increases in salaries and employee benefits expense of $808 thousand and merger-related expenses of $1.1 million.

    Income Taxes

    The effective tax rate for the three months ended December 31, 2024, amounted to 25.4%, compared to 30.3% for the three months ended December 31, 2023. The decrease was due primarily to annual book to tax return adjustments in the prior year quarter.

    Balance Sheet

    Total assets amounted to $4.83 billion at December 31, 2024, compared to $4.47 billion at December 31, 2023, an increase of 8%.

    Total investment securities at fair value amounted to $593.6 million at December 31, 2024, compared to $668.2 million at December 31, 2023. The decrease of 11% during the year ended December 31, 2024, was largely attributable to principal pay-downs, calls and maturities. In addition, unrealized losses on debt securities amounted to $101.8 million at December 31, 2024, compared to $102.9 million at December 31, 2023, a decrease of 1%.

    Total loans amounted to $3.98 billion at December 31, 2024, compared to $3.57 billion at December 31, 2023. The increase of 12% during the year ended December 31, 2024, was due primarily to increases in commercial real estate and construction loans of $203.1 million and $94.9 million, respectively.

    Total deposits amounted to $4.19 billion at December 31, 2024, compared to $3.98 billion at December 31, 2023. The increase of 5% during the year ended December 31, 2024, was due primarily to increases in money market and certificate of deposit balances of $51.5 million and $164.1 million, respectively.

    Total borrowed funds amounted to $153.1 million at December 31, 2024, compared to $25.8 million at December 31, 2023. The increase of $127.4 million during the year ended December 31, 2024, the majority of which occurred at the end of December, resulted primarily from an increase in short-term advances used to support strong loan growth. Average borrowed funds during the fourth quarter of 2024 amounted to $37.8 million.

    Total shareholders’ equity amounted to $360.7 million at December 31, 2024, compared to $329.1 million at December 31, 2023. The increase of 10% during the year ended December 31, 2024, was due primarily to an increase in retained earnings of $26.9 million.

    Credit Quality

    Selected credit quality metrics at December 31, 2024, compared to December 31, 2023, were as follows:

    • The allowance for credit losses (“ACL”) for loans amounted to $63.5 million, or 1.59% of total loans, compared to $59.0 million, or 1.65% of total loans. The decrease in the ACL for loans to total loan ratio was due primarily to a decrease in reserves on individually evaluated loans and a decrease in qualitative factors within our ACL model.
    • The reserve for unfunded commitments (included in other liabilities) amounted to $4.4 million, compared to $7.1 million. The decrease was driven primarily by a decrease in off-balance sheet commitments that required a reserve.
    • Non-performing loans amounted to $26.7 million, or 0.67% of total loans, compared to $11.4 million, or 0.32% of total loans. The increase resulted primarily from two individually evaluated commercial construction loans which were placed on non-accrual.

    Net charge-offs for the year ended December 31, 2024, amounted to $206 thousand, or 0.01% of average total loans, compared to $105 thousand, or 0.00% of average total loans, for the year ended December 31, 2023.

    Wealth Management

    Wealth assets under management and administration, which are not carried as assets on the Company’s consolidated balance sheets, amounted to $1.54 billion at December 31, 2024, an increase of $215.8 million, or 16%, compared to December 31, 2023, and resulted primarily from an increase in market values.

    About Enterprise Bancorp, Inc.

    Enterprise Bancorp, Inc. is a Massachusetts corporation that conducts substantially all its operations through Enterprise Bank and Trust Company, commonly referred to as Enterprise Bank, and has reported 141 consecutive profitable quarters. Enterprise Bank is principally engaged in the business of attracting deposits from the general public and investing in commercial loans and investment securities. Through Enterprise Bank and its subsidiaries, the Company offers a range of commercial, residential and consumer loan products, deposit products and cash management services, electronic and digital banking options, as well as wealth management, and trust services. The Company’s headquarters and Enterprise Bank’s main office are located at 222 Merrimack Street in Lowell, Massachusetts. The Company’s primary market area is the Northern Middlesex, Northern Essex, and Northern Worcester counties of Massachusetts and the Southern Hillsborough and Southern Rockingham counties in New Hampshire. Enterprise Bank has 27 full-service branches located in the Massachusetts communities of Acton, Andover, Billerica (2), Chelmsford (2), Dracut, Fitchburg, Lawrence, Leominster, Lexington, Lowell (2), Methuen, North Andover, Tewksbury (2), Tyngsborough and Westford and in the New Hampshire communities of Derry, Hudson, Londonderry, Nashua (2), Pelham, Salem and Windham.

    Forward-Looking Statements

    This earnings release contains statements about future events that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by references to a future period or periods or by the use of the words “believe,” “expect,” “anticipate,” “intend,” “upcoming,” “estimate,” “assume,” “will,” “should,” “could,” “plan,” and other similar terms or expressions. Forward-looking statements should not be relied on because they involve known and unknown risks, uncertainties and other factors, some of which are beyond the control of the Company. These risks, uncertainties, and other factors may cause the actual results, performance, and achievements of the Company to be materially different from the anticipated future results, performance or achievements expressed in, or implied by, the forward-looking statements. Factors that could cause such differences include, but are not limited to, (i) disruption from the proposed merger with Independent; (ii) the risk that the proposed merger with Independent may not be completed in a timely manner or at all; (iii) the occurrence of any event, change, or other circumstances that could give rise to the termination of the proposed merger with Independent, including under circumstances that would require Enterprise to pay a termination fee; (iv) the failure to obtain necessary shareholder or regulatory approvals for the proposed merger with Independent; (v) the ability to successfully integrate the combined business; (vi) the possibility that the amount of the costs, fees, expenses, and charges related to the proposed merger with Independent may be greater than anticipated, including as a result of unexpected or unknown factors, events, or liabilities; (vii) the failure of the conditions to the proposed merger with Independent to be satisfied; (viii) reputational risk and the reaction of the parties’ customers to the proposed merger with Independent; (xi) the risk of potential litigation or regulatory action related to the proposed merger with Independent; (x) the impact on us and our customers of a decline in general economic conditions and any regulatory responses thereto; (xi) potential recession in the United States and our market areas; (xii) the impacts related to or resulting from uncertainty in the banking industry as a whole; (xiii) increased competition for deposits and related changes in deposit customer behavior; (xiv) the impact of changes in market interest rates, whether due to a continuation of the elevated interest rate environment or further reductions in interest rates and a resulting decline in net interest income; (xv) the lingering inflationary pressures, and the risk of the resurgence of elevated levels of inflation, in the United States and our market areas; (xvi) the uncertain impacts of ongoing quantitative tightening and current and future monetary policies of the Board of Governors of the Federal Reserve System; (xvii) increases in unemployment rates in the United States and our market areas; (xviii) declines in commercial real estate values and prices; (xix) uncertainty regarding United States fiscal debt, deficit and budget matters; (xx) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; (xxi) severe weather, natural disasters, acts of war or terrorism, geopolitical instability or other external events, including as a result of changes in U.S. presidential administrations or Congress, including potential changes in U.S. and international trade policies and the resulting impact on the Company and its customers; (xxii) competition and market expansion opportunities; (xxiii) changes in non-interest expenditures or in the anticipated benefits of such expenditures; (xxiv) changes in tax laws; (xxv) the risks related to the development, implementation, use and management of emerging technologies, including artificial intelligence and machine learnings; (xxvi) potential increased costs related to the impacts of climate change; and (xxvii) current or future litigation, regulatory examinations or other legal and/or regulatory actions. Therefore, the Company can give no assurance that the results contemplated in the forward-looking statements will be realized and readers are cautioned not to place undue reliance on the forward-looking statements contained in this press release. For more information about these factors, please see our reports filed with or furnished to the U.S. Securities and Exchange Commission (the “SEC”), including our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q on file with the SEC, including the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Any forward-looking statements contained in this earnings release are made as of the date hereof, and we undertake no duty, and specifically disclaim any duty, to update or revise any such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

    ENTERPRISE BANCORP, INC.
    Consolidated Balance Sheets
    (unaudited)
     
    (Dollars in thousands, except per share data)   December 31,
    2024    		   December 31,
    2023
    Assets        
    Cash and cash equivalents:        
    Cash and due from banks   $ 42,689     $ 37,443  
    Interest-earning deposits with banks     41,152       19,149  
    Total cash and cash equivalents     83,841       56,592  
    Investments:        
    Debt securities at fair value (amortized cost of $685,766 and $763,981, respectively)     583,930       661,113  
    Equity securities at fair value     9,665       7,058  
    Total investment securities at fair value     593,595       668,171  
    Federal Home Loan Bank stock     7,093       2,402  
    Loans held for sale     520       200  
    Loans:        
    Total loans     3,982,898       3,567,631  
    Allowance for credit losses     (63,498 )     (58,995 )
    Net loans     3,919,400       3,508,636  
    Premises and equipment, net     42,444       44,931  
    Lease right-of-use asset     24,126       24,820  
    Accrued interest receivable     20,553       19,233  
    Deferred income taxes, net     49,096       49,166  
    Bank-owned life insurance     67,421       65,455  
    Prepaid income taxes     2,583       1,589  
    Prepaid expenses and other assets     11,398       19,183  
    Goodwill     5,656       5,656  
    Total assets   $ 4,827,726     $ 4,466,034  
    Liabilities and Shareholders‘Equity        
    Liabilities        
    Deposits   $ 4,187,698     $ 3,977,521  
    Borrowed funds     153,136       25,768  
    Subordinated debt     59,815       59,498  
    Lease liability     23,849       24,441  
    Accrued expenses and other liabilities     33,425       45,011  
    Accrued interest payable     9,055       4,678  
    Total liabilities     4,466,978       4,136,917  
    Commitments and Contingencies        
    Shareholders‘Equity        
    Preferred stock, $0.01 par value per share; 1,000,000 shares authorized; no shares issued     —       —  
    Common stock, $0.01 par value per share; 40,000,000 shares authorized; 12,447,308 and 12,272,674 shares issued and outstanding, respectively.     124       123  
    Additional paid-in capital     111,295       107,377  
    Retained earnings     328,243       301,380  
    Accumulated other comprehensive loss     (78,914 )     (79,763 )
    Total shareholders’ equity     360,748       329,117  
    Total liabilities and shareholders’ equity   $ 4,827,726     $ 4,466,034  
                     
    ENTERPRISE BANCORP, INC.
    Consolidated Statements of Income
    (unaudited)
     
        Three months ended   Year ended
    (Dollars in thousands, except per share data)   December 31, 
    2024    		   September 30, 
    2024    		   December 31, 
    2023    		   December 31, 
    2024    		   December 31, 
    2023
    Interest and dividend income:                    
    Other interest-earning assets   $ 833     $ 2,497     $ 2,350   $ 6,199     $ 9,943  
    Investment securities     3,881       3,835       4,219     15,693       18,575  
    Loans and loans held for sale     54,528       53,809       46,680     208,378       172,535  
    Total interest and dividend income     59,242       60,141       53,249     230,270       201,053  
    Interest expense:                    
    Deposits     19,488       20,581       15,821     76,513       44,389  
    Borrowed funds     394       674       43     2,426       113  
    Subordinated debt     867       866       867     3,467       3,467  
    Total interest expense     20,749       22,121       16,731     82,406       47,969  
    Net interest income     38,493       38,020       36,518     147,864       153,084  
    Provision for credit losses     (106 )     1,332       2,493     1,985       9,249  
    Net interest income after provision for credit losses     38,599       36,688       34,025     145,879       143,835  
    Non-interest income:                    
    Wealth management fees     2,043       2,025       1,797     7,888       6,730  
    Deposit and interchange fees     2,240       2,282       2,145     8,875       8,475  
    Income on bank-owned life insurance, net     522       518       314     2,001       1,264  
    Net losses on sales of debt securities     —       (2 )     —     (2 )     (2,419 )
    Net gains on sales of loans     33       57       —     156       34  
    Net (losses) gains on equity securities     (30 )     604       674     1,140       666  
    Other income     808       656       617     2,821       2,859  
    Total non-interest income     5,616       6,140       5,547     22,879       17,609  
    Non-interest expense:                    
    Salaries and employee benefits     19,276       20,097       18,468     78,224       72,283  
    Occupancy and equipment expenses     2,364       2,438       2,283     9,667       9,722  
    Technology and telecommunications expenses     2,687       2,618       2,719     10,708       10,656  
    Advertising and public relations expenses     609       559       709     2,585       2,786  
    Audit, legal and other professional fees     460       569       788     2,474       2,945  
    Deposit insurance premiums     950       900       768     3,571       2,712  
    Supplies and postage expenses     242       261       245     980       998  
    Merger-related expenses     1,137       —       —     1,137       —  
    Other operating expenses     2,117       1,911       2,244     7,786       8,097  
    Total non-interest expense     29,842       29,353       28,224     117,132       110,199  
    Income before income taxes     14,373       13,475       11,348     51,626       51,245  
    Provision for income taxes     3,646       3,488       3,441     12,893       13,187  
    Net income   $ 10,727     $ 9,987     $ 7,907   $ 38,733     $ 38,058  
                         
    Basic earnings per common share   $ 0.86     $ 0.80     $ 0.64   $ 3.13     $ 3.11  
    Diluted earnings per common share   $ 0.86     $ 0.80     $ 0.64   $ 3.12     $ 3.11  
                         
    Basic weighted average common shares outstanding     12,433,895       12,428,543       12,261,918     12,386,669       12,223,626  
    Diluted weighted average common shares outstanding     12,460,063       12,438,160       12,276,769     12,398,062       12,244,036  
                                           
    ENTERPRISE BANCORP, INC.
    Selected Consolidated Financial Data and Ratios
    (unaudited)
     
        At or for the three months ended
    (Dollars in thousands, except per share data)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Balance Sheet Data                    
    Total cash and cash equivalents   $ 83,841     $ 88,632     $ 199,719     $ 147,834     $ 56,592  
    Total investment securities at fair value     593,595       631,975       636,838       652,026       668,171  
    Total loans     3,982,898       3,858,940       3,768,649       3,654,322       3,567,631  
    Allowance for credit losses     (63,498 )     (63,654 )     (61,999 )     (60,741 )     (58,995 )
    Total assets     4,827,726       4,742,809       4,773,681       4,624,015       4,466,034  
    Total deposits     4,187,698       4,189,461       4,248,801       4,106,119       3,977,521  
    Borrowed funds     153,136       59,949       61,785       63,246       25,768  
    Subordinated debt     59,815       59,736       59,657       59,577       59,498  
    Total shareholders’ equity     360,748       368,109       340,441       333,439       329,117  
    Total liabilities and shareholders’ equity     4,827,726       4,742,809       4,773,681       4,624,015       4,466,034  
                         
    Wealth Management                    
    Wealth assets under management   $ 1,230,014     $ 1,212,076     $ 1,129,147     $ 1,105,036     $ 1,077,761  
    Wealth assets under administration   $ 305,930     $ 302,891     $ 267,529     $ 268,074     $ 242,338  
                         
    Shareholders’ Equity Ratios                    
    Book value per common share   $ 28.98     $ 29.62     $ 27.40     $ 26.94     $ 26.82  
    Dividends paid per common share   $ 0.24     $ 0.24     $ 0.24     $ 0.24     $ 0.23  
                         
    Regulatory Capital Ratios                    
    Total capital to risk weighted assets     13.06 %     13.07 %     13.07 %     13.20 %     13.12 %
    Tier 1 capital to risk weighted assets(1)     10.38 %     10.36 %     10.34 %     10.43 %     10.34 %
    Tier 1 capital to average assets     8.94 %     8.68 %     8.76 %     8.85 %     8.74 %
                         
    Credit Quality Data                    
    Non-performing loans   $ 26,687     $ 25,946     $ 17,731     $ 18,527     $ 11,414  
    Non-performing loans to total loans     0.67 %     0.67 %     0.47 %     0.51 %     0.32 %
    Non-performing assets to total assets     0.55 %     0.55 %     0.37 %     0.40 %     0.26 %
    ACL for loans to total loans     1.59 %     1.65 %     1.65 %     1.66 %     1.65 %
    Net charge-offs (recoveries)   $ 221     $ (7 )   $ (130 )   $ 122     $ 15  
                         
    Income Statement Data                    
    Net interest income   $ 38,493     $ 38,020     $ 36,161     $ 35,190     $ 36,518  
    Provision for credit losses     (106 )     1,332       137       622       2,493  
    Total non-interest income     5,616       6,140       5,628       5,495       5,547  
    Total non-interest expense     29,842       29,353       29,029       28,908       28,224  
    Income before income taxes     14,373       13,475       12,623       11,155       11,348  
    Provision for income taxes     3,646       3,488       3,111       2,648       3,441  
    Net income   $ 10,727     $ 9,987     $ 9,512     $ 8,507     $ 7,907  
                         
    Income Statement Ratios                    
    Diluted earnings per common share   $ 0.86     $ 0.80     $ 0.77     $ 0.69     $ 0.64  
    Return on average total assets     0.89 %     0.82 %     0.82 %     0.75 %     0.69 %
    Return on average shareholders’ equity     11.82 %     11.20 %     11.55 %     10.47 %     10.21 %
    Net interest margin (tax-equivalent)(2)     3.29 %     3.22 %     3.19 %     3.20 %     3.29 %
                                             
    (1) Ratio also represents common equity tier 1 capital to risk weighted assets as of the periods presented.
    (2) Tax-equivalent net interest margin is net interest income adjusted for the tax-equivalent effect associated with tax-exempt loan and investment income, expressed as a percentage of average interest-earning assets.
                                             
    ENTERPRISE BANCORP, INC.
    Consolidated Loan and Deposit Data
    (unaudited)
     
    Major classifications of loans at the dates indicated were as follows:
     
    (Dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Commercial real estate owner-occupied   $ 704,634     $ 660,063     $ 660,478     $ 635,420     $ 619,302  
    Commercial real estate non owner-occupied     1,563,201       1,579,827       1,544,386       1,524,174       1,445,435  
    Commercial and industrial     479,821       415,642       426,976       417,604       430,749  
    Commercial construction     679,969       674,434       622,094       583,711       585,113  
    Total commercial loans     3,427,625       3,329,966       3,253,934       3,160,909       3,080,599  
                         
    Residential mortgages     443,096       424,030       413,323       400,093       393,142  
    Home equity loans and lines     103,858       95,982       93,220       85,144       85,375  
    Consumer     8,319       8,962       8,172       8,176       8,515  
    Total retail loans     555,273       528,974       514,715       493,413       487,032  
    Total loans     3,982,898       3,858,940       3,768,649       3,654,322       3,567,631  
                         
    ACL for loans     (63,498 )     (63,654 )     (61,999 )     (60,741 )     (58,995 )
    Net loans   $ 3,919,400     $ 3,795,286     $ 3,706,650     $ 3,593,581     $ 3,508,636  
                                             
    Deposits are summarized at the periods indicated were as follows:
                         
    (Dollars in thousands)   December 31,
    2024    		   September 30,
    2024    		   June 30,
    2024    		   March 31,
    2024    		   December 31,
    2023
    Non-interest checking   $     1,077,998   $     1,064,424   $     1,041,771   $     1,038,887   $     1,061,009
    Interest-bearing checking              699,671              682,050              788,822              730,819              697,632
    Savings              270,367              279,824              294,566              285,090              294,865
    Money market           1,454,443           1,488,437           1,504,551           1,469,181           1,402,939
    CDs $250,000 or less              377,958              375,055              358,149              337,367              295,789
    CDs greater than $250,000              307,261              299,671              260,942              244,775              225,287
     Deposits   $     4,187,698   $     4,189,461   $     4,248,801   $     4,106,119   $     3,977,521
                                   
    ENTERPRISE BANCORP, INC.
    Consolidated Average Balance Sheets and Yields (tax-equivalent basis)
    (unaudited)
     
    The following table presents the Company’s average balance sheets, net interest income and average rates for the periods indicated:
     
        Three months ended
    December 31, 2024    		   Three months ended
    September 30, 2024    		   Three months ended
    December 31, 2023
    (Dollars in thousands)   Average 
    Balance    		   Interest(1)   Average
    Yield(1)    		   Average 
    Balance    		   Interest(1)   Average
    Yield(1)    		   Average 
    Balance    		   Interest(1)   Average 
    Yield(1)
    Assets:                                    
    Other interest-earning assets(2)   $ 68,224   $ 833   4.85 %   $ 181,465   $ 2,497   5.48 %   $ 172,167   $ 2,350   5.42 %
    Investment securities(3)(tax-equivalent)     704,629     3,985   2.26 %     731,815     3,945   2.16 %     799,093     4,345   2.17 %
    Loans and loans held for sale(4)(tax-equivalent)     3,911,386     54,673   5.56 %     3,813,800     53,956   5.63 %     3,467,945     46,824   5.36 %
    Total interest-earnings assets (tax-equivalent)     4,684,239     59,491   5.06 %     4,727,080     60,398   5.09 %     4,439,205     53,519   4.79 %
    Other assets     101,952             104,284             78,102        
    Total assets   $ 4,786,191           $ 4,831,364           $ 4,517,307        
                                         
    Liabilities and stockholders’ equity:                                    
    Non-interest checking   $ 1,106,823     —       $ 1,069,130     —       $ 1,145,254   $ —    
    Interest checking, savings and money market     2,471,854     11,728   1.89 %     2,574,439     13,017   2.01 %     2,437,142     10,786   1.76 %
    CDs     683,248     7,760   4.52 %     651,614     7,564   4.62 %     500,286     5,035   3.99 %
    Total deposits     4,261,925     19,488   1.82 %     4,295,183     20,581   1.91 %     4,082,682     15,821   1.54 %
    Borrowed funds     37,812     394   4.15 %     61,232     674   4.38 %     7,572     43   2.24 %
    Subordinated debt(5)     59,768     867   5.80 %     59,689     866   5.81 %     59,451     867   5.83 %
    Total funding liabilities     4,359,505     20,749   1.89 %     4,416,104     22,121   1.99 %     4,149,705     16,731   1.60 %
    Other liabilities     65,720             60,524             60,376        
    Total liabilities     4,425,225             4,476,628             4,210,081        
    Stockholders’ equity     360,966             354,736             307,226        
    Total liabilities and stockholders’ equity   $ 4,786,191           $ 4,831,364           $ 4,517,307        
                                         
    Net interest-rate spread (tax-equivalent)           3.17 %           3.10 %           3.19 %
    Net interest income (tax-equivalent)         38,742             38,277             36,788    
    Net interest margin (tax-equivalent)           3.29 %           3.22 %           3.29 %
    Less tax-equivalent adjustment         249             257             270    
    Net interest income       $ 38,493           $ 38,020           $ 36,518    
    Net interest margin           3.27 %           3.20 %           3.27 %
     
    (1) Average yields and interest income are presented on a tax-equivalent basis, calculated using a U.S. federal income tax rate of 21% for each period presented, based on tax-equivalent adjustments associated with tax-exempt loans and investments interest income.
    (2) Average other interest-earning assets include interest-earning deposits with banks, federal funds sold and Federal Home Loan Bank stock.
    (3) Average investment securities are presented at average amortized cost.
    (4) Average loans and loans held for sale are presented at average amortized cost and include non-accrual loans.
    (5) Subordinated debt is net of average deferred debt issuance costs.
     

    CAUTION REGARDING FORWARD-LOOKING STATEMENTS

    This communication may contain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements about the benefits of the proposed transaction, the plans, objectives, expectations and intentions of Independent and Enterprise, the expected timing of completion of the proposed transaction, and other statements that are not historical facts. Such statements reflect the current views of Independent Bank Corp. (“Independent”) and Enterprise Bancorp, Inc. (“Enterprise”) with respect to future events and financial performance, and are subject to numerous assumptions, risks, and uncertainties. Statements that do not describe historical or current facts, including statements about beliefs, expectations, plans, predictions, forecasts, objectives, assumptions or future events or performance, are forward-looking statements. Forward-looking statements often, but not always, may be identified by words such as expect, anticipate, believe, intend, potential, estimate, plan, target, goal, or similar words or expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations. The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.

    Independent and Enterprise caution that the forward-looking statements in this communication are not guarantees of future performance and involve a number of known and unknown risks, uncertainties and assumptions that are difficult to assess and are subject to change based on factors which are, in many instances, beyond Independent’s and Enterprise’s control. While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: (1) changes in general economic, political, or industry conditions; (2) uncertainty in U.S. fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; (3) volatility and disruptions in global capital and credit markets; (4) movements in interest rates; (5) the resurgence of elevated levels of inflation or inflationary pressures in the United States and the Enterprise and Independent market areas; (6) increased competition in the markets of Independent and Enterprise; (7) success, impact, and timing of business strategies of Independent and Enterprise; (8) the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations; (9) the expected impact of the proposed transaction between Enterprise and Independent on the combined entities’ operations, financial condition, and financial results; (10) the failure to obtain necessary regulatory approvals (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the proposed transaction); (11) the failure to obtain Enterprise shareholder approval or to satisfy any of the other conditions to the proposed transaction on a timely basis or at all or other delays in completing the proposed transaction; (12) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; (13) the outcome of any legal proceedings that may be instituted against Independent or Enterprise; (14) the possibility that the anticipated benefits of the proposed transaction are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies or as a result of the strength of the economy and competitive factors in the areas where Independent and Enterprise do business; (15) the possibility that the proposed transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; (16) diversion of management’s attention from ongoing business operations and opportunities; (17) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the proposed transaction; (18) the dilution caused by Independent’s issuance of additional shares of its capital stock in connection with the proposed transaction; (19) cyber incidents or other failures, disruptions or breaches of our operational or security systems or infrastructure, or those of our third-party vendors or other service providers, including as a result of cyber-attacks; and (20) other factors that may affect the future results of Independent and Enterprise.

    Additional factors that could cause results to differ materially from those described above can be found in Independent’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such reports, as well as in subsequent SEC filings, each of which is on file with the U.S. Securities and Exchange Commission (the “SEC”) and available in the “Investor Relations” section of Independent’s website, www.rocklandtrust.com, under the heading “SEC Filings” and in other documents Independent files with the SEC, and in Enterprise’s Annual Report on Form 10-K for the year ended December 31, 2023 and in its subsequent Quarterly Reports on Form 10-Q, including in the respective “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of such reports, as well as in subsequent SEC filings, each of which is on file with and available in the “Investor Relations” section of Enterprise’s website, enterprisebancorp.q4ir.com, under the heading “SEC Filings” and in other documents Enterprise files with the SEC.

    All forward-looking statements speak only as of the date they are made and are based on information available at that time. Neither Independent nor Enterprise assumes any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by applicable law. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements. All forward-looking statements, express or implied, included in the document are qualified in their entirety by this cautionary statement.

    ADDITIONAL INFORMATION AND WHERE TO FIND IT

    This communication is being made with respect to the proposed transaction involving Independent and Enterprise. This material is not a solicitation of any vote or approval of the Enterprise shareholders and is not a substitute for the proxy statement/prospectus or any other documents that Independent and Enterprise may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

    In connection with the proposed transaction between Independent and Enterprise, Independent has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”) that includes a proxy statement for a special meeting of Enterprise’s shareholders to approve the proposed transaction and that also constitutes a prospectus for the Independent common stock that will be issued in the proposed transaction, as well as other relevant documents concerning the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS AND SHAREHOLDERS OF INDEPENDENT AND ENTERPRISE ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT/PROSPECTUS REGARDING THE PROPOSED TRANSACTION WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Enterprise will mail the proxy statement/prospectus to its shareholders. Shareholders are also urged to carefully review and consider Independent’s and Enterprise’s public filings with the SEC, including, but not limited to, their respective proxy statements, Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Copies of the Registration Statement and of the proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about Independent and Enterprise, can be obtained, free of charge, as they become available at the SEC’s website (http://www.sec.gov). Copies of the proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the proxy statement/prospectus can also be obtained, without charge, by directing a request to Independent Investor Relations, 288 Union Street, Rockland, Massachusetts 02370, telephone (774) 363-9872 or to Enterprise Bancorp, Inc., 222 Merrimack Street, Lowell, MA 01852, Attention: Corporate Secretary, telephone (978) 656-5578.

    PARTICIPANTS IN THE SOLICITATION

    Independent, Enterprise, and certain of their respective directors, executive officers and employees may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies from the shareholders of Enterprise in connection with the proposed transaction. Information regarding Independent’s directors and executive officers is available in its definitive proxy statement relating to its 2024 Annual Meeting of Shareholders, which was filed with the SEC on March 28, 2024, and its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 28, 2024, and other documents filed by Independent with the SEC. Information regarding Enterprise’s directors and executive officers is available in its definitive proxy statement relating to its 2024 Annual Meeting of Shareholders, which was filed with the SEC on April 3, 2024, and its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on March 8, 2024 and other documents filed by Enterprise with the SEC. Other information regarding the persons who may, under the SEC’s rules, be deemed to be participants in the proxy solicitation of Enterprise’s shareholders in connection with the proposed transaction, and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus regarding the proposed transaction and other relevant materials filed with the SEC when they become available, which may be obtained free of charge as described in the preceding paragraph.

    Contact Info: Joseph R. Lussier, Executive Vice President, Chief Financial Officer and Treasurer (978) 656-5578

    The MIL Network –

  • MIL-OSI USA: MEMO: How Trump’s Federal Funding Freeze Affects Colorado

    US Senate News:

    Source: United States Senator for Colorado John Hickenlooper
    Head Start programs, Meals on Wheels, Veterans’ suicide prevention programs, COPS grants to police departments all affected
    In a chaotic late-night, two-page memo, President Trump immediately froze federal grants and loans. While the order is blatantly illegal, below is a memo outlining what programs are being affected by this sudden, ill-thought out freeze of funding. 
    “What does this mean for Colorado? Funding to our police departments, our hospitals, programs for homeless veterans. Nearly 9,000 kids in Colorado Head Start programs may be locked out. Trump is sacrificing working Americans,” said U.S. Senator John Hickenlooper.
    TO: Interested Parties
    FROM: Office of U.S. Senator John Hickenlooper
    SUBJECT: Effects of Trump Executive Order Freezing Federal Funds 
    DATE: January 28, 2025 
    OMB Memo to Pause Spending: On Monday night, the acting director of the White House Office of Management and Budget sent a two-page memorandum to all federal agency heads directing them to “temporarily pause all activities related to obligations or disbursement of Federal financial assistance.” The order is set to take effect at 3pm MT today. The memo also requires that agencies review all financial assistance programs to ensure activities are “consistent with the President’s policies and requirements,” citing several executive orders directed to pause all spending on foreign aid, the green new deal, “woke gender ideology,” and DEI programs. Agencies must provide OMB detailed information on program spending by February 10th, and assign “responsibility and oversight” to a senior political appointee. Below you can find priority programs and projects in Colorado that may be impacted by this pause. 
    COLORADO IMPACTS
    The order is expected to impact tens of billions of dollars in payments for Colorado. Federal funds make up approximately 25 percent of  Colorado’s total budget.
    The latest Biden administration data lists total IRA/BIL/CHIPS public investment in Colorado at $10.586 billion
    IRA/BIL climate-focused programs: Estimated $600M-$900M 
    Halts programs at Colorado’s rural hospitals: Pauses funding to increase health care access, support community health centers, treat substance abuse issues, and improve care quality for small rural hospitals and Critical Access Hospitals across the state. 
    For example, some of the programs and areas that will be affected:
    $1,420,601 for rural hospital improvements and Medicare flexibility in Arapahoe County
    $1,250,000 to battle the opioid crisis and increase access to substance abuse programs in Moffat County
    $784,031 to help screen patients suffering from black lung disease Denver County
    $499,847 to battle the opioid crisis and increase access to substance abuse programs in Adams County 
    $200,000 to improve access to health care providers in San Miguel County 
    $100,000 to expand rural health care development in Archuleta County 
    $100,000 to expand rural health care development in Mesa County
    Additional programs paused include cancer research, rural telehealth options, and infectious disease preparation.
    Medicaid portal down nationwide: Our office has heard from Colorado hospitals that the Medicaid payment system has been turned off. With Medicaid portals down, doctors and hospitals in Colorado are unable to receive funds through the system. Reports have circulated that other states are running into the same issue and have been shut off from Medicaid. 
    Takes food away from 40 percent of Colorado school kids: Halts federal payments for school breakfast and lunch programs. 40% of Colorado kids rely on these programs to stay fed and healthy. 
    Cuts off 83,000+ low-income families from heating their homes in the dead of winter: Halts funding disbursements for low-income Colorado families who rely on LIHEAP funding to keep their home warm this winter. In FY24, 83,800+ households depended on LIHEAP. 
    25,000+ Colorado seniors will be unsure where their next meal will come from: Local Meals on Wheels providers are unsure whether they will be able to serve meals. 25,000+ Colorado seniors utilize Meals on Wheels to access food. 
    Strips $182 million from the budgets of our local public schools: Will strip Colorado public schools of $182 million in federal funding, straining the budget of our local public schools even further.
    19,000+ kids unable to attend child care or Head Start programs: Facilities will not be able to access reimbursements that help provide low-income kids with the early childhood education, health, and nutrition that they need. In FY23, nearly 9,000 kids were enrolled in Head Start in Colorado. Head Start programs around the country are already reporting being locked out of the portal to access reimbursements.
    Federal funding to provide child care assistance to low-income families will also be paused, with over 10,000 kids in Colorado between the ages of 0-5 were supported by Child Care and Development Block Grant funding last year. 
    Hits our farmers and producers where it hurts when food prices are already too high for working families: This threatens funding to programs that benefit producers and consumers alike, including the Local Food Purchase Assistance Cooperative Agreement Program (LFPA). Since 2022, LFPA has contributed over $2M to local ag in Colorado, and enabled food banks to distribute over 1.2 million pounds of nutritious food to Coloradans in need. The order also pauses funding to agriculture research and meat, poultry, and egg product inspection.  
    Pauses critical loans for thousands of Colorado small businesses: All SBA loans, including disaster relief, will be paused. This will cripple local small businesses as they will be unable to make payroll, their leasing payment, or more. Over 5,000 Colorado small businesses have been approved for SBA loans in the past three years. 
    Deny Colorado communities funding to fight opioid misuse: Last year, Colorado received $20.8 million to fund addiction prevention, treatment, and recovery services across the state.
    Weakens our public safety and undermines our law enforcement: Pauses crucial funding used to prevent terrorism, hire more police officers, prevent school violence, and crack down on drug trafficking. 
    For example, some of grants that boost public safety in Colorado that will be impacted include: 
    $12.2 million to the Colorado Department of Public Safety to prevent terrorism 
    $9 million in Office of Violence Against Women grants in FY24 for Colorado organizations for victims assistance as well as state and local police  
    $680,798 awarded to Colorado Springs to reduce drug trafficking and drug production
    $336,629 for the Colorado Department of Public Safety to crack down on drug trafficking 
    Strips Colorado’s 365,000+ veterans of the support and resources they’ve earned: Halts funding for community-based suicide prevention efforts, organizations that provide care for veterans experiencing homelessness, and services for veterans living with disabilities or struggling with mental health crises. Health care programs that support family members of disabled veterans as well as educational programs, such as the Montgomery GI Bill and post-9/11 education benefits, will be paused. Funds will also be frozen for the VA Dependency and Indemnity Compensation, which supports surviving family members. Federal funding that helps veterans secure good-paying jobs through job training and support services is also threatened. 
    For example, organizations, such as the Colorado Coalition for Homeless, won’t be able to access their regular funding to help support veterans pay their monthly rent.  
    Cuts off 988 Suicide and Crisis Lifeline: Pauses funding for the suicide and life crisis hotline that offers real-time support for those struggling with a mental health crisis, emotional distress, and alcohol or durg use.  
    After our Bipartisan Infrastructure Law has already invested $5.3 billion in Colorado, all DOT grant programs will be paused and reviewed. Many Colorado projects are at risk, including all major programs impacting highways, aviation, safety, rail, and more.
    Appeases China by allowing them to continue having a hold in our rural communication networks: Hickenlooper successfully secured $3.08 billion for the Federal Communications’s Secure and Trusted Communications Networks Reimbursement Program, or the Rip and Replace program for short. Colorado was awarded the highest outstanding amount. That funding is now paused, leaving our rural small businesses in the dust and our telecommunications networks at risk.

    MIL OSI USA News –