Category: KB

  • MIL-OSI: Bridgeline to Report Financial Results for the Fourth Quarter of Fiscal 2024

    Source: GlobeNewswire (MIL-OSI)

    WOBURN, Mass., Dec. 20, 2024 (GLOBE NEWSWIRE) — Bridgeline Digital, Inc. (NASDAQ: BLIN), a global leader in AI-powered marketing technology, announced today that it will release its financial results for the fourth quarter of fiscal 2024 after market close on Monday, December 23, 2024.

    On that day, Ari Kahn, the Company’s President and Chief Executive Officer, and Thomas Windhausen, the Company’s Chief Financial Officer, plan to host a live conference call at 4:30 p.m. ET to discuss the financial results.

    The details and registration link for the conference call and replay are as follows:

    Participants can register for the conference call using the URL above. Registration in advance of the call is recommended. Once registered, participants will receive dial-in numbers and their unique PIN number.

    About Bridgeline Digital

    Bridgeline helps companies grow online revenues by increasing their traffic, conversion rate, and average order value through its suite of apps. To learn more, please visit www.bridgeline.com or call (800) 603-9936.

    Safe Harbor for Forward-Looking Statements
    Statement under the Private Securities Litigation Reform Act of 1995

    All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, are based on our current expectations, estimates and projections about our industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. These statements appear in a number of places in this press release and include statements regarding the intent, belief or current expectations of Bridgeline Digital, Inc. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions, including, but not limited to, business operations and the business of our customers, suppliers and partners; our ability to retain and upgrade current customers, increasing our recurring revenue, our ability to attract new customers, our revenue growth rate; our history of net loss and our ability to achieve or maintain profitability; instability in the financial markets, including the banking sector; our liability for any unauthorized access to our data or our users’ content, including through privacy and data security breaches; any decline in demand for our platform or products; changes in the interoperability of our platform across devices, operating systems, and third party applications that we do no control; competition in our markets; our ability to respond to rapid technological changes, extend our platform, develop new features or products, or gain market acceptance for such new features or products, particularly in light of potential disruptions to the productivity of our employees resulting from remote work; our ability to manage our growth or plan for future growth, and our acquisition of other businesses and the potential of such acquisitions to require significant management attention, disrupt our business, or dilute stockholder value; the volatility of the market price of our common stock, the ability to maintain our listing on the NASDAQ Capital Market, or our ability to maintain an effective system of internal controls as well as other risks described in our filings with the Securities and Exchange Commission. Any of such risks could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement. These forward-looking statements assumes no obligation and does not intend to update these forward-looking statements, except as required by law.

    For more information, please contact:  

    Thomas Windhausen
    Bridgeline Digital, Inc.
    Chief Financial Officer
    twindhausen@bridgeline.com

    The MIL Network

  • MIL-OSI: OTTAWA BANCORP, INC. ANNOUNCES COMPLETION OF STOCK REPURCHASE PROGRAM

    Source: GlobeNewswire (MIL-OSI)

    OTTAWA, Ill., Dec. 20, 2024 (GLOBE NEWSWIRE) — Ottawa Bancorp, Inc. (OTCQX: OTTW) (the “Company”), the holding company for OSB Community Bank, announced today that the Company has completed its previously announced stock repurchase program. Under the program, the Company repurchased 127,332 shares of its outstanding common stock at an average price of $13.51 per share.

    About Ottawa Bancorp, Inc.

    Ottawa Bancorp, Inc. is the holding company for OSB Community Bank which provides various financial services to individual and corporate customers in the United States. OSB Community Bank offers various deposit accounts, including checking, money market, regular savings, club savings, certificates of deposit, and various retirement accounts. Its loan portfolio includes one-to-four family residential mortgage, multi-family and non-residential real estate, commercial, and construction loans as well as auto loans and home equity lines of credit. OSB Community Bank was founded in 1871 and is headquartered in Ottawa, Illinois. For more information about the Company and OSB Community Bank, please visit www.myosb.bank.

    The MIL Network

  • MIL-OSI: Credit Acceptance Announces Completion of $300.0 Million Asset-Backed Financing

    Source: GlobeNewswire (MIL-OSI)

    Southfield, Michigan, Dec. 20, 2024 (GLOBE NEWSWIRE) — Credit Acceptance Corporation (Nasdaq: CACC) (the “Company”, “Credit Acceptance”, “we”, “our”, or “us”) announced today the completion of a $300.0 million asset-backed non-recourse secured financing (the “Financing”). Pursuant to this transaction, we conveyed loans having a value of approximately $375.1 million to a wholly owned special purpose entity that will pledge the loans to institutional lenders under a loan and security agreement. We will issue three classes of notes:

    Note Class   Amount   Interest Rate
                   A   $ 139,220,000     5.79 %
                   B   $ 62,180,000     6.03 %
                   C   $ 98,600,000     6.67 %

    The Financing will:

    • have an expected average annualized cost of approximately 6.3% including upfront fees and other costs;
    • revolve for 36 months after which it will amortize based upon the cash flows on the conveyed loans; and
    • be used by us to repay outstanding indebtedness and for general corporate purposes.

    We will receive 4.0% of the cash flows related to the underlying consumer loans to cover servicing expenses. The remaining 96.0%, less amounts due to dealers for payments of dealer holdback, will be used to pay principal and interest to the institutional lenders as well as the ongoing costs of the Financing. The Financing is structured so as not to affect our contractual relationships with dealers and to preserve the dealers’ rights to future payments of dealer holdback.

    Description of Credit Acceptance Corporation

    We make vehicle ownership possible by providing innovative financing solutions that enable automobile dealers to sell vehicles to consumers regardless of their credit history. Our financing programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing; from repeat and referral sales generated by these same customers; and from sales to customers responding to advertisements for our financing programs, but who actually end up qualifying for traditional financing.

    Without our financing programs, consumers are often unable to purchase vehicles or they purchase unreliable ones. Further, as we report to the three national credit reporting agencies, an important ancillary benefit of our programs is that we provide consumers with an opportunity to improve their lives by improving their credit score and move on to more traditional sources of financing. Credit Acceptance is publicly traded on the Nasdaq Stock Market under the symbol CACC. For more information, visit creditacceptance.com.

    The MIL Network

  • MIL-OSI: Onfolio Holdings Inc. Announces Quarterly Preferred Stock Cash Dividend of $0.75 Per Share

    Source: GlobeNewswire (MIL-OSI)

    WILMINGTON, Del., Dec. 20, 2024 (GLOBE NEWSWIRE) — Onfolio Holdings Inc. (Nasdaq: ONFO, ONFOW) (OTC: ONFOP) (the “Company” or “Onfolio”), a company that acquires and manages a diversified portfolio of online businesses, today announced that its Board of Directors has declared a regular quarterly dividend of $0.75 per share on the outstanding shares of the Company’s series A preferred stock.

    The dividend is payable on December 31, 2024, to shareholders of record as of the close of business on December 21, 2024.

    About Onfolio Holdings

    Onfolio acquires and manages a diversified portfolio of online businesses. Onfolio acquires business that meet its investment criteria, being that such businesses operate in sectors with long-term growth opportunities, have positive and stable cash flows, face minimal threats of technological or competitive obsolescence and can be managed by our existing team or have strong management teams largely in place. The Company excels at finding acquisition opportunities where the seller has not fully optimized their business, and Onfolio’s experience and skillset allows it to add increased value to these existing businesses. Visit www.onfolio.com for more information.

    Safe Harbor Statement

    The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words “may,” “will,” “should,” “plans,” “explores,” “expects,” “anticipates,” “continues,” “estimates,” “projects,” “intends,” and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing new customer offerings, changes in customer order patterns, changes in customer offering mix, continued success in technological advances and delivering technological innovations, delays due to issues with outsourced service providers, those events and factors described by us in Item 1.A “Risk Factors” in our most recent Form 10-K and Form 10-Q; other risks to which our Company is subject; other factors beyond the Company’s control. Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

    Investor Contact
    investors@onfolio.com

    The MIL Network

  • MIL-OSI: Expion360 Announces Departure of Chief Financial Officer

    Source: GlobeNewswire (MIL-OSI)

    REDMOND, Ore., Dec. 20, 2024 (GLOBE NEWSWIRE) — Expion360 Inc. (Nasdaq: XPON) (“Expion360” or the “Company”), an industry leader in lithium-ion battery power storage solutions, announced today the resignation of Greg Aydelott, Chief Financial Officer of the Company, effective December 31, 2024, due to family health concerns. Mr. Aydelott intends to remain available to the Company on an ongoing basis as a consultant to ensure a smooth transition.

    The Company’s Board of Directors has appointed the Company’s Chief Executive Officer, Brian Schaffner, as interim Chief Financial Officer, and Principal Financial and Accounting Officer, effective December 31, 2024, and is conducting a search process to identify a new CFO. Mr. Schaffner previously served as the CFO of Expion360 from March 2021 through January 2023.

    “On behalf of our Board of Directors, leadership team and employees, I would like to thank Greg for his outstanding service and commitment over the past three years,” said Mr. Schaffner. “He has made significant contributions to Expion360’s success, including managing our growth, strengthening our balance sheet, enhancing our planning and budgeting process, and overseeing investments in new technologies and batteries.”

    “This has been an incredible journey with talented people, and it has been a privilege to help lead this passionate team,” said Mr. Aydelott. “I look forward to following the success of Expion360 for years to come.”

    About Expion360

    Expion360 is an industry leader in premium lithium iron phosphate (LiFePO4) batteries and accessories for recreational vehicles and marine applications, with residential and industrial applications under development. On December 19, 2023, the Company announced its entrance into the home energy storage market with the introduction of two premium LiFePO4 battery storage systems that enable residential and small business customers to create their own stable micro-energy grid and lessen the impact of increasing power fluctuations and outages.

    The Company’s lithium-ion batteries feature half the weight of standard lead-acid batteries while delivering three times the power and ten times the number of charging cycles. Expion360 batteries also feature better construction and reliability compared to other lithium-ion batteries on the market due to their superior design and quality materials. Specially reinforced, fiberglass-infused, premium ABS and solid mechanical connections help provide top performance and safety. With Expion360 batteries, adventurers can enjoy the most beautiful and remote places on Earth even longer.

    The Company is headquartered in Redmond, Oregon. Expion360 lithium-ion batteries are available today through more than 300 dealers, wholesalers, private-label customers, and OEMs across the country. To learn more about the Company, visit expion360.com.

    Forward-Looking Statements and Safe Harbor Notice

    This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements are subject to considerable risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release, including statements about our beliefs and expectations, are “forward-looking statements” and should be evaluated as such. Examples of such forward-looking statements include statements that use forward-looking words such as “projected,” “expect,” “possibility,” “believe,” “aim,” “goal,” “plan,” and “anticipate,” or similar expressions. Forward-looking statements included in this press release include, but are not limited to, statements relating to the expected timing and impact of the executive transition, including Mr. Aydelott’s continuing role as a consultant to the Company, and the Company’s ability to build on its momentum and achieve its financial and strategic objectives. Forward-looking statements are subject to and involve risks, uncertainties, and assumptions that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements predicted, assumed or implied by such forward-looking statements.

    Company Contact:
    Brian Schaffner, CEO
    541-797-6714
    Email Contact

    External Investor Relations:
    Chris Tyson, Executive Vice President
    MZ Group – MZ North America
    949-491-8235
    XPON@mzgroup.us
    www.mzgroup.us

    The MIL Network

  • MIL-OSI Russia: IMF Executive Board Completes the Sixth Review of the Extended Arrangement under the Extended Fund Facility for Ukraine

    Source: IMF – News in Russian

    December 20, 2024

    • The IMF Board today completed the Sixth Review of the Extended Arrangement under the Extended Fund Facility (EFF) for Ukraine, enabling a disbursement of about US$1.1 billion (SDR 834.9 million) to Ukraine, which will be channeled by the authorities for budget support.
    • Ukraine’s economy remains resilient, and performance remains strong under the EFF despite challenging conditions. The authorities met all end-September quantitative performance criteria and structural benchmarks.
    • Sustained reform momentum, progress at domestic revenue mobilization, and timely disbursement of external support are necessary to safeguard macroeconomic stability, restore fiscal and debt sustainability, and improve governance.

    Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the Sixth Review of the EFF, enabling the authorities to draw US$1.1 billion (SDR 834.9 million), which will be channeled by the authorities for budget support. This will bring the total disbursements under the IMF-supported program to US$9.8 billion.

    Ukraine’s 48-month EFF, with access of SDR 11.6 billion (equivalent to US$15.5 billion, or about 577 percent of quota), was approved on March 31, 2023, and forms part of a US$148 billion support package for Ukraine. The authorities’ IMF-supported program helps anchor policies that sustain fiscal, external, and macro-financial stability at a time of exceptionally high uncertainty. The EFF aims to support the economic recovery, enhance governance, and strengthen institutions with the aim of promoting long-term growth in the context of reconstruction and Ukraine’s path to EU accession.

    Ukraine’s performance under its program remains strong. All end-September and continuous quantitative performance criteria and indicative targets were met. The authorities have also completed a prior action on the enactment of the package of tax measures, have met all end-October structural benchmarks due by the Sixth Review and three of the end-December benchmarks.  

    Economic growth in 2024 has been upgraded given better than expected resilience to the energy shocks. However, a slowdown is expected in 2025 due to an increasingly tight labor market, the impact of Russian attacks on Ukrainian energy infrastructure, and continued uncertainty about the war. Inflation has risen recently, mainly due to food prices, while inflation expectations remain well anchored. Adequate reserves have been sustained by continued sizeable external support. Overall, the outlook remains subject to exceptionally high uncertainty.

    Following the Executive Board discussion on Ukraine, Ms. Kristalina Georgieva, Managing Director of the IMF, issued the following statement[1]:

    “Russia’s war in Ukraine continues to take a devastating social and economic toll on Ukraine. Despite the war, macroeconomic stability is being preserved through skillful policymaking by the Ukrainian authorities as well as substantial external support. The economy has remained resilient, reflecting the continued adaptability of households and firms, although risks are tilted to the downside due to headwinds from attacks on energy infrastructure and a tight labor market. Preparedness and contingency planning are key to enable appropriate policy action should risks materialize.

    The program remains fully financed with a cumulative external financing envelope of US$148 billion in the baseline and US$177 billion in the downside over the 4-year program period, including commitments from the G7’s Extraordinary Revenue Acceleration Loans for Ukraine (ERA) initiative. Full, timely and predictable external support—on terms consistent with debt sustainability—remains essential to maintaining full program financing and safeguarding stability.

    A tax package and 2025 Budget in line with the program baseline have been enacted, but there are few remaining buffers and strict budget execution will be key. Continued progress at domestic revenue mobilization is imperative for Ukraine to meet its high priority spending needs and to restore fiscal sustainability. Strong implementation of the National Revenue Strategy and customs reform will help raise further revenues, improve compliance, combat evasion, and support EU accession.

    After completing the Eurobond exchange in August, the authorities are now focusing on reaching agreement with other holders of external commercial claims, including GDP warrants, in line with their strategy. A swift agreement in line with the program’s debt sustainability objectives would reduce fiscal risks and create space for critical spending needs.

    Inflation has accelerated more than expected in recent months, and the recent tightening of monetary policy was appropriate; the NBU should stand ready to take further action should inflation expectations deteriorate. Allowing exchange rate flexibility will help strengthen the resilience of the economy to external shocks while safeguarding reserves.

    The financial sector remains stable, but vigilance is needed given heightened risks. Progress on strengthening bank resolution and risk-based supervision, stress-testing frameworks and contingency planning should be sustained.

    Reform momentum in anticorruption and governance needs to be sustained. In particular, the authorities need to advance the creation of a new court for high public disputes, and amend the criminal procedure code.”

    Table 1. Ukraine: Selected Economic and Social Indicators, 2021–27

    2021

     

    2022

     

    2023

    2024

    2025

    2026

    2027

    Act.

    Act.

    Act.

    Proj.

    Proj.

    Proj.

    Proj.

    Real economy (percent change, unless otherwise indicated)

    Nominal GDP (billions of Ukrainian hryvnias) 1/

    5,451

     

    5,239

     

    6,538

    7,629

    8,680

    9,874

    10,937

    Real GDP 1/

    3.4

     

    -28.8

     

    5.3

    4.0

    2.5-3.5

    5.3

    4.5

    Contributions:

                     

    Domestic demand

    12.9

     

    -22.9

     

    13.9

    6.5

    4.9

    4.5

    4.2

    Private consumption

    4.7

     

    -16.8

     

    5.5

    3.3

    3.2

    3.8

    3.5

    Public consumption

    0.1

     

    12.5

     

    2.6

    -0.1

    -1.1

    -2.5

    -1.9

    Investment

    8.1

     

    -18.6

     

    5.8

    3.3

    2.9

    3.2

    2.6

    Net exports

    -9.5

     

    -5.9

     

    -8.6

    -2.5

    -2.4

    0.8

    0.3

    GDP deflator

    24.8

     

    34.9

     

    18.5

    12.2

    11.0

    8.0

    6.0

    Unemployment rate (ILO definition; period average, percent)

    9.8

     

    24.5

     

    19.1

    13.3

    11.8

    10.2

    9.4

    Consumer prices (period average)

    9.4

     

    20.2

     

    12.9

    6.2

    10.3

    7.7

    5.0

    Consumer prices (end of period)

    10.0

     

    26.6

     

    5.1

    10.0

    7.5

    6.6

    5.0

    Nominal wages (average)

    20.8

     

    1.0

     

    20.1

    19.1

    18.9

    14.1

    10.5

    Real wages (average)

    10.5

     

    -16.0

     

    6.4

    12.1

    7.8

    6.0

    5.3

    Savings (percent of GDP)

    12.5

     

    17.0

     

    9.8

    8.5

    2.9

    9.1

    15.2

    Private

    12.7

     

    30.2

     

    24.6

    24.1

    17.9

    14.7

    13.6

    Public

    -0.2

     

    -13.1

     

    -14.8

    -15.6

    -14.9

    -5.6

    1.5

    Investment (percent of GDP)

    14.5

     

    12.1

     

    15.1

    16.9

    17.5

    19.3

    20.4

    Private

    10.7

     

    9.6

     

    10.4

    13.6

    13.6

    15.0

    15.3

    Public

    3.8

     

    2.5

     

    4.8

    3.4

    4.0

    4.3

    5.1

                     

    General Government (percent of GDP)

                     

    Fiscal balance 2/

    -4.0

     

    -15.6

     

    -19.6

    -18.9

    -18.9

    -9.9

    -3.6

    Fiscal balance, excl. grants 2/

    -4.0

     

    -24.8

     

    -26.1

    -24.3

    -19.7

    -10.1

    -4.6

    External financing (net)

    2.4

     

    10.7

     

    16.5

    14.8

    18.0

    8.9

    1.4

    Domestic financing (net), of which:

    1.6

     

    5.0

     

    3.1

    4.1

    0.9

    1.0

    2.2

    NBU

    -0.3

     

    7.3

     

    -0.2

    -0.2

    -0.2

    -0.1

    -0.1

    Commercial banks

    1.5

     

    -1.5

     

    2.5

    4.1

    1.0

    0.9

    2.2

    Public and publicly-guaranteed debt

    48.9

     

    77.7

     

    82.3

    92.2

    104.3

    105.8

    101.8

                     

    Money and credit (end of period, percent change)

                     

    Base money

    11.2

     

    19.6

     

    23.3

    15.0

    17.2

    12.0

    10.1

    Broad money

    12.0

     

    20.8

     

    23.0

    16.7

    14.4

    12.1

    10.1

    Credit to nongovernment

    8.4

     

    -3.1

     

    -0.5

    11.6

    12.9

    21.0

    17.6

                     

    Balance of payments (percent of GDP)

                     

    Current account balance

    -1.9

     

    4.9

     

    -5.4

    -8.4

    -14.6

    -10.1

    -5.3

    Foreign direct investment

    3.8

     

    0.1

     

    2.5

    2.5

    2.4

    4.1

    5.2

    Gross reserves (end of period, billions of U.S. dollars)

    30.9

     

    28.5

     

    40.5

    42.3

    43.3

    47.9

    50.1

    Months of next year’s imports of goods and services

    4.5

     

    3.8

     

    5.3

    5.3

    5.4

    5.8

    5.9

    Percent of short-term debt (remaining maturity)

    67.5

     

    64.3

     

    87.1

    102.7

    99.8

    112.3

    116.0

    Percent of the IMF composite metric (float)

    104.4

     

    103.6

     

    124.1

    112.0

    100.5

    100.2

    102.0

    Goods exports (annual volume change in percent)

    35.3

     

    -44.7

     

    -15.8

    15.5

    1.6

    16.7

    10.6

    Goods imports (annual volume change in percent)

    16.9

     

    -23.6

     

    21.7

    9.3

    6.9

    8.9

    9.4

    Goods terms of trade (percent change)

    -8.4

     

    -11.6

     

    3.6

    0.3

    -1.9

    1.2

    1.4

                     

    Exchange rate

                     

    Hryvnia per U.S. dollar (end of period)

    27.3

     

    36.6

     

    38.0

    Hryvnia per U.S. dollar (period average)

    27.3

     

    32.3

     

    36.6

    Real effective rate (deflator-based, percent change)

    8.8

     

    30.5

     

    -2.0

    Memorandum items:

    Per capita GDP / Population (2017): US$2,640 / 44.8 million

    Literacy / Poverty rate (2022 est 3/): 100 percent / 25 percent

    Sources: Ukrainian authorities; World Bank, World Development Indicators; and IMF staff estimates.

    1/ GDP is compiled as per SNA 2008 and excludes territories that are or were in direct combat zones and temporarily occupied by Russia (consistent with   the TMU).

    2/ The general government includes the central and local governments and the social funds.

    3/ Based on World Bank estimates.

                                     

    [1] At the conclusion of the discussion, the Managing Director, as Chairman of the Board, summarizes the views of Executive Directors, and this summary is transmitted to the country’s authorities. An explanation of any qualifiers used in summing up can be found here: http://www.IMF.org/external/np/sec/misc/qualifiers.htm.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Camila Perez

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/12/20/pr-24493-ukraine-imf-completes-6th-rev-of-extended-arrangement-under-eff

    MIL OSI

    MIL OSI Russia News

  • MIL-OSI United Nations: Adopting Resolution 2764 (2024), Security Council Underscores Importance of Preserving Child Protection Capacities in UN Mission Transitions

    Source: United Nations General Assembly and Security Council

    The Security Council today adopted a resolution highlighting the need for sustainable child protection capacities in United Nations peace operations and the importance of their smooth, responsible transfer to the Organization’s country teams during mission transitions or withdrawals.

    Unanimously adopting resolution 2764 (2024) (to be issued as document S/RES/2764(2024)), the Council condemned all violations of applicable international law involving the recruitment and use of children by parties to armed conflict, as well as their re-recruitment, killing and maiming, rape and other forms of sexual violence, abductions and attacks against schools and hospitals.

    The 15-member organ further called for “strengthened coordination” among key stakeholders to “ensure the continuity, effectiveness, and sustainability of child protection activities.”  These actors include the heads of UN peace operations, the Office of the Special Representative of the Secretary-General for Children and Armed Conflict and the Co-Chairs of the Country Task Forces on Monitoring and Reporting, as well as relevant Governments and authorities.

    The representative of Malta, the draft’s author and Chair of the Working Group on Children and Armed Conflict, noted that the text has gathered the support of more than 100 States.  She emphasized that her country has placed the protection of children in armed conflict at the forefront of its agenda, noting that the resolution reaffirmed States’ determination to address violations against children in conflict zones and recognized the need to sustain child protection capacities during UN mission transitions.  Describing the text as “a call to action”, she further underscored the critical need for the timely recruitment and deployment of Child Protection Advisers.

    Ecuador’s delegate, Vice-Chair of the Working Group, said that his country’s joint leadership with Malta over the last two years has produced the adoption of nine consensus-based documents about children in Afghanistan, Colombia, Philippines, Iraq, Nigeria, Mali, Central African Republic, Somalia and South Sudan.  These conclusions stand as road maps to guide the action of States and the international community.  She called on the Working Group to continue its efforts — together with the Special Representative, the monitoring and reporting mechanism, and UN personnel on the ground — in shedding light on grave violations against children.

    Hailing the text’s adoption, Sierra Leone’s representative stressed that “more than 470 million children are affected by armed conflict globally” and that peace operations and other programmatic interventions play a critical role in protecting civilians and stabilizing the post-conflict situation. “It is in this spirit that we hope that this resolution will ensure the prioritization of child protection capacity and mechanisms in differentiated contexts of UN mission transitions,” he added.

    Expressing deep concern that grave violations against children “have risen to shocking levels in recent years”, the United Kingdom’s delegate called on the Council and the wider UN system to “do more to protect children who are uniquely vulnerable and often the primary victims of conflict”. Welcoming the resolution’s focus on the crucial role of dedicated Child Protection Advisers in UN missions, he called for greater coordination on child protection across the entire system, along with an effective monitoring and reporting mechanism.

    The Russian Federation’s delegate welcomed a “balanced and laconic resolution” that represented the Council’s constructive approach towards unity on the important mandate — “which of late has regrettably been politicized”.  Voicing support for the African Union’s efforts on promoting the child component in its peacekeeping operations, she called for renewing the request for Secretary-General António Guterres to ensure that information communicated regarding violations against children is accurate, objective and reliable.

    The representative of the United States said that “this resolution serves as a poignant reminder of the urgency and necessity of strengthening the international community’s child protection capacities”. She emphasized the crucial need for those States named in the Secretary-General’s annual children and armed conflict report to enter action plans with the Special Representative’s office to address the concerns raised.  Guyana’s delegate stressed that the Council must use its tools to improve the protection of children.  “We have seen examples of how increased child protection capacity in countries has led to improvements in the lives of the children,” she observed, pointing to the negative impacts of abrupt UN mission closures on child protection.  The adopted text provides critical details for coordination and smooth and responsible mission responsibilities during transitions, she added.

    “They [children] embody the seeds of hope for better future,” said Algeria’s delegate, stressing that the adopted text constitutes an important step towards ensuring sustainable protection of children in armed conflict.  The speaker for the Republic of Korea noted today’s adoption demonstrates strong global commitment to strengthening the children and armed conflict framework developed over 25 years and represents a milestone in global efforts to bridge the gap in child protection capacities.

    Japan’s delegate emphasized the vital importance of education in post-conflict settings — a prerequisite for lasting, sustainable peace, that must be prioritized, as the resolution pointed out.  He supported the text’s call for dedicated child protection capacities and reintegration assistance to end and prevent violations.

    NEW – Follow real-time meetings coverage on our LIVE blog.

    MIL OSI United Nations News

  • MIL-OSI United Nations: Security Council Renews Mandate of Stabilization Mission in Democratic Republic of Congo, Unanimously Adopting Resolution 2765 (2024)

    Source: United Nations General Assembly and Security Council

    The Security Council today extended for one year the mandate of the United Nations Organization Stabilization Mission in the Democratic Republic of the Congo (MONUSCO), expressing grave concern over the ongoing offensive by the 23 March Movement (M23) in North Kivu, in violation of the ceasefire, and the unauthorized presence of external forces from a neighbouring State in the eastern part of the country.

    Unanimously adopting resolution 2765 (2024) (to be issued as document S/RES/2765 (2024)), the Council — acting under Chapter VII of the Charter of the United Nations — decided that the new mandate expires on 20 December 2025.  The mandate includes, on an exceptional basis and without precedent to peacekeeping’s basic principles, its Force Intervention Brigade.

    The draft further decided that MONUSCO’s authorized troop ceiling will comprise 11,500 military personnel, 600 military observers and staff officers, 443 police personnel and 1,270 personnel of formed police units.

    The text also decided to retain the Mission’s key strategic priorities — protecting civilians, supporting the stabilization and strengthening of State institutions and key governance and security reforms. In this regard, it authorized MONUSCO to use “all means at its disposal … to promptly and effectively prevent armed groups’ attacks against civilians”.

    By its other terms, the text requested the Secretary-General — in his quarterly reports on MONUSCO — to provide updates on progress towards the implementation of its gradual, responsible and sustainable withdrawal to evaluate the Mission’s performance, including its Force Intervention Brigade, and provide operational assessments and recommendations.

    Furthermore, the text requested a tailored approach to MONUSCO’s gradual, responsible and sustainable withdrawal, considering evolving conflict dynamics and protection risks in hotspot areas across North Kivu and Ituri Provinces.  It requested that this strategy be shared with the Council by 31 March 2025.

    “Today’s adoption can be a moment that will significantly change the trajectory of the situation in the Democratic Republic of the Congo towards the peaceful resolution of the conflict,” said the representative of Sierra Leone, a co-penholder of the draft.  He supported Kinshasa’s efforts to protect civilians and stabilize and strengthen State institutions.  However, he cautioned that M23’s territorial expansion remains deeply concerning, demanding that it end its offensive and cease its expansion in the east of the country without delay.

    France’s delegate, noting that the text reaffirms that protection of civilians will be a priority task for MONUSCO, said the Mission will also continue its disengagement.  Condemning all obstacles to the implementation of its mandate — including the territorial expansion of M23 — he reaffirmed support for the Luanda process and urged all stakeholders to continue negotiations.

    After the vote, Mozambique’s delegate, speaking also for Algeria, Guyana and Sierra Leone, stressed that the resolution arrives “at a pivotal moment” for the Democratic Republic of the Congo and the region.  Highlighting MONUSCO’s efforts to support Kinshasa in addressing the deteriorating security and humanitarian situation in the eastern part of the country, he underscored that effective implementation of its mandate remains crucial to the stability of the country and the protection of civilians.  Effective collaboration with the Government of the Democratic Republic of the Congo is vital, particularly in planning the next steps for the Mission’s drawdown and consolidating the drawdown in South Kivu.

    At the national level, he underlined the critical importance of revitalizing the Nairobi process in sustainably addressing the issue of local armed groups.  Simultaneously, the establishment of a robust State presence in the eastern regions is vital in ensuring a well-equipped State apparatus capable of administering the territory and countering all threats against civilians.  He also highlighted the critical contributions of the African Union in addressing the protracted conflict in the eastern part of the country as well as Angola’s leadership and mediation efforts.  While national and regional efforts are vital, he called on the Security Council to continue playing a constructive role in achieving a peaceful conflict settlement.

    China’s delegate, noting that the peace process in the Democratic Republic of the Congo is at a critical juncture, commended Angola’s efforts to promote the Luanda process.  He further voiced support for Kinshasa in safeguarding its national sovereignty, independence and territorial integrity, adding that the UN should fully respect the views and demands of its Government and ensure that the withdrawal of MONUSCO does not create a security vacuum.

    Meanwhile, the United Kingdom’s delegate expressed disappointment that the Luanda process Heads of State summit was postponed and urged all parties to engage with the process in good faith.  Also expressing concern about the surge in violence since 15 December, including the presence of Rwanda Defence Forces in the Democratic Republic of the Congo, he called on parties to the conflict to refrain from obstructing the Mission’s operations.

    “While we fully support the extension of MONUSCO’s mandate”, the representative of the United States said, “we remain dismayed that some members of the Council resisted the inclusion of language factually describing Rwanda’s role in [the eastern part of the country],” especially in the face of “extensive evidence” of Rwanda’s deployment of troops in the Democratic Republic of the Congo and its influence over M23 operations.  She also expressed disappointment that Rwanda’s President declined to attend the tripartite summit, “forfeiting a significant opportunity to advance peace efforts”.  Highlighting the ceasefire agreement between the Democratic Republic of the Congo and Rwanda and the establishment of the verification mechanism to monitor the ceasefire, she added:  “We must not lose sight of how far we have come.”

    NEW – Follow real-time meetings coverage on our LIVE blog.

    MIL OSI United Nations News

  • MIL-OSI USA: Governor Cooper Volunteers in Buncombe County, Thanks Volunteer Organizations Involved in Relief Efforts

    Source: US State of North Carolina

    Headline: Governor Cooper Volunteers in Buncombe County, Thanks Volunteer Organizations Involved in Relief Efforts

    Governor Cooper Volunteers in Buncombe County, Thanks Volunteer Organizations Involved in Relief Efforts
    mseets

    Today, Governor Roy Cooper volunteered at the Asheville Buncombe Community Christian Ministry (ABCCM) Servant Leadership Center and thanked volunteer organizations involved in relief efforts. The Governor was joined by Asheville Buncombe Community Christian Ministry Chief Operating Officer Brandon Wilson, United Way of Asheville and Buncombe County President and CEO Dan Leroy and leaders from various volunteer organizations across North Carolina.

    “Western North Carolina will continue to need help for years, and state government coordination with volunteer groups has been one of the most effective ways to recover and rebuild,” said Governor Cooper. “We are determined to succeed and we are deeply grateful for the volunteers who continue to work tirelessly in our communities.”

    “On behalf of WNC we are honored to have Governor Cooper visit and work alongside ABCCM, the churches, and our community during Hurricane Helene relief efforts,” said Asheville Buncombe Community Christian Ministry Chief Operating Officer Brandon Wilson. “His collaboration and presence today participating with our community partners packing food boxes has exemplified his leadership as Governor and wish him the best in his next chapter.”

    “During this holiday season, despite so much tragedy and loss, it’s important to take a moment to celebrate the extraordinary cooperation and service of countless nonprofit organizations, churches, businesses, government agencies and volunteers that has made Western North Carolina’s response to Helene so remarkable,” said United Way of Asheville and Buncombe County President and CEO Dan Leroy. “Our ability to recover from this horrific disaster, and come out the other side even stronger, will depend directly on our ability to work together. This is what United Way has always been—and will always be—about.”

    Governor Cooper established the state’s disaster relief fund to raise donations to help western North Carolina rebuild. $16.8 million has been raised for the NC Disaster Relief Fund to help with Hurricane Helene recovery.

    Governor Cooper has continued to support significant investments in Western North Carolina. In November, Governor Cooper traveled to Washington D.C. with a delegation to request more than $25 billion in federal funding for Helene recovery.

    ###

    Dec 20, 2024

    MIL OSI USA News

  • MIL-OSI USA: United States Joins Lawsuit Against Former Executives of Kabbage Inc. Alleging False Claims Act Violations in Connection with Paycheck Protection Program Lending

    Source: US State of California

    The United States has intervened and filed a complaint against Robert Frohwein, Kathryn Petralia and Spencer Robinson, three former executives of Kabbage Inc., a now-bankrupt financial technology company. The United States alleges that they violated the False Claims Act by submitting and causing the submission of false claims for loan forgiveness, loan guarantees and processing fees to the Small Business Administration (SBA) in connection with Kabbage’s participation in the Paycheck Protection Program (PPP).

    “The PPP was intended to provide critical assistance to eligible businesses during the economic uncertainty caused by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that PPP lenders — including their executives — are held accountable for contributing to the misuse of PPP funds by knowingly failing to comply with applicable program requirements, including approving PPP loans in inflated amounts and to ineligible borrowers.”

    Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The SBA administered the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans so long as they used loan funds on employee payroll and other eligible expenses. Among other things, participating PPP lenders were required to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. Lenders were also required to follow applicable Bank Secrecy Act/Anti-Money Laundering requirements to help combat fraud. Any unforgiven or defaulted PPP loans made by lenders were guaranteed by the SBA, so long as the lenders adhered to PPP requirements. Lenders who originated PPP loans were paid a fixed fee calculated as a percentage of the loan amount by the SBA.

    According to the government’s complaint, Frohwein and Petralia co-founded Kabbage in 2008 and served as the company’s chief executive officer and president, respectively, while Robinson formerly served as the company’s head of strategy. Kabbage was approved as a PPP lender in 2020 and approved more than $7 billion in PPP loans that year for which the company was paid more than $217 million in processing fees after certifying that it had complied with all applicable lending requirements.

    The complaint alleges that, between April and October 2020, the defendants knowingly submitted or caused the submission of false claims for loan guarantees, loan forgiveness and processing fees relating to tens of thousands of PPP loans that were systemically inflated due to calculation errors by Kabbage. These errors allegedly included Kabbage’s double-counting of state and local taxes paid by employees and the failure to exclude annual compensation in excess of $100,000 per employee from its calculation of payroll costs. Additionally, the lawsuit alleges that the defendants knowingly submitted or caused the submission of false claims for processing fees related to tens of thousands of PPP loans where Kabbage failed to implement appropriate fraud controls. The government’s complaint alleges that the defendants ignored these violations to maximize PPP processing fees before selling off the majority of Kabbage’s assets in October 2020.

    Kabbage Inc., which is now winding down its operations as KServicing Wind Down Corp. after filing for bankruptcy in the wake of the 2020 asset sale, previously agreed to resolve allegations relating to its role in the submission of false claims to the SBA. As part of that settlement, the United States received a general unsecured claim in the bankruptcy proceeding of up to $120 million, and the company received a credit for $12.5 million that Kabbage returned to SBA during the department’s investigation.

    “The PPP was a light providing hope to businesses in the midst of the shadow of a global pandemic,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Unfortunately, some unscrupulous lenders and executives took advantage of that situation by lining their pockets with ill-gotten incentive payments from processing PPP loans despite not performing even the most cursory fraud checks or reviews of borrower documentation. Individuals who shirked their responsibilities at the expense of the public fisc must be held accountable. This lawsuit against Kabbage’s former executives demonstrates our firm commitment to holding all parties responsible for their part in causing the submission of false claims to the PPP.”

    “SBA’s lending partners have a responsibility to ensure only eligible borrowers gain access to SBA’s programs,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA OIG)’s Central Region. “SBA OIG stands ready to support the Justice Department in rooting out greed and wrongful actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

    The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Paul Pietschner, a former analyst in Kabbage’s collections department. The FCA permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The FCA also permits the United States to intervene in such an action, as it has done in this case. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties. 

    On May 17, 2021, Attorney General Merrick B. Garland established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal 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 actors committing civil and criminal fraud 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 www.justice.gov/coronavirus.

    Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Betty Young for the Eastern District of Texas are handling the matter, with assistance provided by the SBA’s Office of General Counsel and Office of the Inspector General.

    The case is captioned United States ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (EDTX).

    The claims asserted by the United States are allegations only. There has been no determination of liability.

    MIL OSI USA News

  • MIL-OSI USA: Medicare Advantage Provider Independent Health to Pay Up To $98M to Settle False Claims Act Suit

    Source: US State of California

    Independent Health Association and its affiliate, Independent Health Corporation (collectively, Independent Health) have agreed to pay up to $98 million to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission of invalid diagnosis codes to Medicare for Medicare Advantage Plan enrollees to increase payments that Independent Health received from Medicare. Independent Health is headquartered in Buffalo, New York.

    Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with diagnoses more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.

    Independent Health operates MA plans for beneficiaries living in western New York. As alleged by the United States, Independent Health created a wholly owned subsidiary, DxID LLC, to retrospectively search medical records and query physicians for information that would support additional diagnoses that could be used to generate higher risk scores, and DxID provided these services to Independent Health and other MA Plans. The United States filed a complaint alleging that, from 2011 through at least 2017, Independent Health, with the assistance of DxID and its founder and chief executive, Betsy Gaffney, knowingly submitted diagnoses to CMS that were not supported by the beneficiaries’ medical records in order to inflate Medicare’s payments to Independent Health.

    “The government expects those who participate in Medicare Advantage to provide accurate information to ensure that proper payments are made for the care received by enrolled beneficiaries,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “Today’s result sends a clear message to the Medicare Advantage community that the United States will take appropriate action against those who knowingly submit inflated claims for reimbursement.”

    “To protect the integrity of Medicare and other federal health care programs, my office is committed to ensuring that each and every dollar meant for Medicare beneficiaries is spent appropriately and in accordance with the law,” said U.S. Attorney Trini E. Ross for the Western District of New York. “As this settlement makes clear, we will diligently pursue those who defraud government programs.”

    “Medicare Advantage Plans that attempt to game federal programs for profit must be held accountable through rigorous oversight and enforcement,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to root out fraud, waste and abuse in federal health care programs.”

    Under the terms of the settlement, Independent Health will make guaranteed payments of $34,500,000 and contingent payments of up to $63,500,000 on behalf it itself and DxID, which ceased operations in 2021. The settlement is based on Independent Health’s ability to pay. Gaffney will separately pay $2,000,000.

    In connection with the settlement, Independent Health entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. The CIA requires, among other things, that Independent Health hire an Independent Review Organization to annually review a sample of Independent Health’s Medicare Advantage patients’ medical records and associated internal controls to help ensure appropriate risk adjustment payments.

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Teresa Ross, a former employee of Group Health Cooperative, now Kaiser Foundation Health Plan of Washington (Kaiser). Under the qui tam provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits as it has done in this case. Ms. Ross will receive at least $8,212,500 of the settlement announced today. Ms. Ross also alleged that Kaiser employed DxID to identify additional diagnoses to be submitted to Medicare for risk adjustment, and the United States previously settled those claims with Kaiser.

    The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS, at 800-HHS-TIPS (800-447-8477).

    Attorneys Samson Asiyanbi and David Wiseman of the Civil Division’s Fraud Section and Assistant U.S. Attorney David Coriell and investigator Peggy McFarland for the Western District of New York handled the matter, with assistance from the HHS-OIG Buffalo Regional Office.

    The case is captioned United States ex rel. Ross v. Independent Health Association et al., No. 12-CV-0299(S) (WDNY).

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    View the settlement here.

    MIL OSI USA News

  • MIL-OSI USA: United States and Arizona File to Effect Transfer of Land to Be Held in Trust for the Hopi Tribe

    Source: US State of California

    The Justice Department, the Department of the Interior (DOI), the State of Arizona and the Hopi Tribe today announced the filing of a “friendly condemnation” to effect the historic transfer of more than 20,000 acres of land from Arizona to the United States to be held in trust for the Hopi Tribe. Upon the deposit by the Hopi Tribe of $3.9 million, which serves as an estimate of just compensation for the benefit of the State of Arizona, into the Registry of the U.S. District Court for the District of Arizona, these lands will be owned by the United States and then immediately placed into trust for the Hopi Tribe. The lands being transferred are interspersed with Hopi-owned lands and have long been leased to the Hopi Tribe for ranching purposes.

    This is the first of an anticipated series of condemnation actions to ultimately transfer approximately 110,000 acres from Arizona to the United States in trust for the Hopi Tribe. As with subsequent actions, today’s condemnation is filed with the concurrence of Arizona and authorized by the Navajo-Hopi Land Dispute Settlement Act of 1996, which ratified a 1995 resolution to a long-running land dispute in northeastern Arizona between the Hopi Tribe, the Navajo Tribe and the United States. When the title is transferred to the United States, DOI will take the lands into trust for the Hopi Tribe.

    “Today’s filing starts the process of eliminating the interspersed ownership that characterizes much of the lands the Hopi Tribe uses for ranching in northeast Arizona, as was envisioned by the Settlement Act of 1996,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Arizona will receive just compensation for the land, and the Hopi Tribe will no longer have to deal with checkerboarded ownership, which will help improve its use for ranching and other agriculture activities.”

    “Today’s filing could initiate historic transfer of more than 20,000 acres back into Hopi Tribe ownership, a first step in the process to transfer an overall 110,000 acres into trust for the Tribes,” said Solicitor Bob Anderson of the Department of the Interior. “All parties stand to benefit, as the State of Arizona will receive just compensation and the Hopi Tribe will take on cohesive ownership across lands that hold sacred and economic significance and will support ranching and agricultural activities of their communities.”

    “After nearly three decades of the Hopi fighting for their rights, I’m proud to enter into this historic agreement,” said Arizona Governor Katie Hobbs. “Every Arizonan should have an opportunity to thrive and a space to call home, and this agreement takes us one step closer to making those Arizona values a reality. While politicians of the past refused to hear the voices of tribal communities in our state, I’m so glad to work side-by-side with them as we build a state that gives every family opportunity. I look forward to continued partnership with Chairman Nuvangyaoma and the 22 tribal governments across our state.”

    “Today is not only a historic day, it is also a day of celebration for the Hopi Tribe. The 1996 Hopi-Navajo Land Settlement Act is being fulfilled; the Hopi Tribe signed the settlement with the United States 30 years ago,” said Chairman Timothy L. Nuvangyaoma of the Hopi Tribe. “I am grateful to everyone who worked on making this a reality; I want to acknowledge the hard-working staff at the Governor’s office, the Arizona State Land Commission, the Department of the Interior and the Department of Justice. A special thank you to Governor Hobbs, Secretary Haaland and Commissioner Sahid for their leadership, collaboration and dedication to this effort. Within Hopi, it is our time of the Soyal’ang ceremony — the start of the New Year and the revitalization of life. It is fitting that this historic moment coincides with such an important time.”

    The acquisition includes all appurtenant water and mineral rights owned by Arizona. However, it is subject to, and will not affect, existing easements and rights of way for public highways and utilities and similar encumbrances.

    Attorneys from ENRD’s Land Acquisition Section are handling the matter.

    MIL OSI USA News

  • MIL-OSI USA: Jordanian National Pleads Guilty to Explosives Threats and Attack on Energy Facility

    Source: US State of California

    Hashem Younis Hashem Hnaihen, 44, of Orlando, pleaded guilty today to four counts of threatening to use explosives and one count of destruction of an energy facility.

    With this plea, we are holding this defendant accountable for his threats to carry out hate-fueled mass violence in our country, motivated in part by his desire to ‘warn’ businesses because of their perceived support of Israel,” said Attorney General Merrick B. Garland. “The Justice Department will fiercely protect the right of every person to peacefully express their opinions, beliefs, and ideas, but we have no tolerance for acts and threats of hate-fueled violence that create lasting fear.”

    “Today, the defendant is admitting he attacked a solar power facility, damaged a number of Florida businesses, and left a series of threatening messages about perceived support for Israel,” said Director Christopher Wray of the FBI. “Violence, destruction of property, and threats are simply unacceptable. The FBI will work with our partners to pursue and hold accountable those who commit illegal and destructive acts and cause our citizens to fear for their safety and livelihoods.”

    According to court documents, beginning around June, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.”

    In his letters, which were addressed to the U.S. government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.”

    Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused nearly $500,000 in damage.

    Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, shortly after another “warning letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

    Hnaihen faces a maximum penalty of 10 years in prison for each threat offense and a maximum penalty of 20 years in prison for the destruction of an energy facility offense. Hnaihen has also agreed to make full restitution to the victims of the offenses. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section are prosecuting the case.

    MIL OSI USA News

  • MIL-OSI Security: United States and Arizona File to Effect Transfer of Land to Be Held in Trust for the Hopi Tribe

    Source: United States Attorneys General

    The Justice Department, the Department of the Interior (DOI), the State of Arizona and the Hopi Tribe today announced the filing of a “friendly condemnation” to effect the historic transfer of more than 20,000 acres of land from Arizona to the United States to be held in trust for the Hopi Tribe. Upon the deposit by the Hopi Tribe of $3.9 million, which serves as an estimate of just compensation for the benefit of the State of Arizona, into the Registry of the U.S. District Court for the District of Arizona, these lands will be owned by the United States and then immediately placed into trust for the Hopi Tribe. The lands being transferred are interspersed with Hopi-owned lands and have long been leased to the Hopi Tribe for ranching purposes.

    This is the first of an anticipated series of condemnation actions to ultimately transfer approximately 110,000 acres from Arizona to the United States in trust for the Hopi Tribe. As with subsequent actions, today’s condemnation is filed with the concurrence of Arizona and authorized by the Navajo-Hopi Land Dispute Settlement Act of 1996, which ratified a 1995 resolution to a long-running land dispute in northeastern Arizona between the Hopi Tribe, the Navajo Tribe and the United States. When the title is transferred to the United States, DOI will take the lands into trust for the Hopi Tribe.

    “Today’s filing starts the process of eliminating the interspersed ownership that characterizes much of the lands the Hopi Tribe uses for ranching in northeast Arizona, as was envisioned by the Settlement Act of 1996,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Arizona will receive just compensation for the land, and the Hopi Tribe will no longer have to deal with checkerboarded ownership, which will help improve its use for ranching and other agriculture activities.”

    “Today’s filing could initiate historic transfer of more than 20,000 acres back into Hopi Tribe ownership, a first step in the process to transfer an overall 110,000 acres into trust for the Tribes,” said Solicitor Bob Anderson of the Department of the Interior. “All parties stand to benefit, as the State of Arizona will receive just compensation and the Hopi Tribe will take on cohesive ownership across lands that hold sacred and economic significance and will support ranching and agricultural activities of their communities.”

    “After nearly three decades of the Hopi fighting for their rights, I’m proud to enter into this historic agreement,” said Arizona Governor Katie Hobbs. “Every Arizonan should have an opportunity to thrive and a space to call home, and this agreement takes us one step closer to making those Arizona values a reality. While politicians of the past refused to hear the voices of tribal communities in our state, I’m so glad to work side-by-side with them as we build a state that gives every family opportunity. I look forward to continued partnership with Chairman Nuvangyaoma and the 22 tribal governments across our state.”

    “Today is not only a historic day, it is also a day of celebration for the Hopi Tribe. The 1996 Hopi-Navajo Land Settlement Act is being fulfilled; the Hopi Tribe signed the settlement with the United States 30 years ago,” said Chairman Timothy L. Nuvangyaoma of the Hopi Tribe. “I am grateful to everyone who worked on making this a reality; I want to acknowledge the hard-working staff at the Governor’s office, the Arizona State Land Commission, the Department of the Interior and the Department of Justice. A special thank you to Governor Hobbs, Secretary Haaland and Commissioner Sahid for their leadership, collaboration and dedication to this effort. Within Hopi, it is our time of the Soyal’ang ceremony — the start of the New Year and the revitalization of life. It is fitting that this historic moment coincides with such an important time.”

    The acquisition includes all appurtenant water and mineral rights owned by Arizona. However, it is subject to, and will not affect, existing easements and rights of way for public highways and utilities and similar encumbrances.

    Attorneys from ENRD’s Land Acquisition Section are handling the matter.

    MIL Security OSI

  • MIL-OSI Security: Jordanian National Pleads Guilty to Explosives Threats and Attack on Energy Facility

    Source: United States Attorneys General

    Hashem Younis Hashem Hnaihen, 44, of Orlando, pleaded guilty today to four counts of threatening to use explosives and one count of destruction of an energy facility.

    With this plea, we are holding this defendant accountable for his threats to carry out hate-fueled mass violence in our country, motivated in part by his desire to ‘warn’ businesses because of their perceived support of Israel,” said Attorney General Merrick B. Garland. “The Justice Department will fiercely protect the right of every person to peacefully express their opinions, beliefs, and ideas, but we have no tolerance for acts and threats of hate-fueled violence that create lasting fear.”

    “Today, the defendant is admitting he attacked a solar power facility, damaged a number of Florida businesses, and left a series of threatening messages about perceived support for Israel,” said Director Christopher Wray of the FBI. “Violence, destruction of property, and threats are simply unacceptable. The FBI will work with our partners to pursue and hold accountable those who commit illegal and destructive acts and cause our citizens to fear for their safety and livelihoods.”

    According to court documents, beginning around June, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.”

    In his letters, which were addressed to the U.S. government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.”

    Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused nearly $500,000 in damage.

    Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, shortly after another “warning letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

    Hnaihen faces a maximum penalty of 10 years in prison for each threat offense and a maximum penalty of 20 years in prison for the destruction of an energy facility offense. Hnaihen has also agreed to make full restitution to the victims of the offenses. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section are prosecuting the case.

    MIL Security OSI

  • MIL-OSI Security: United States Joins Lawsuit Against Former Executives of Kabbage Inc. Alleging False Claims Act Violations in Connection with Paycheck Protection Program Lending

    Source: United States Attorneys General 7

    The United States has intervened and filed a complaint against Robert Frohwein, Kathryn Petralia and Spencer Robinson, three former executives of Kabbage Inc., a now-bankrupt financial technology company. The United States alleges that they violated the False Claims Act by submitting and causing the submission of false claims for loan forgiveness, loan guarantees and processing fees to the Small Business Administration (SBA) in connection with Kabbage’s participation in the Paycheck Protection Program (PPP).

    “The PPP was intended to provide critical assistance to eligible businesses during the economic uncertainty caused by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that PPP lenders — including their executives — are held accountable for contributing to the misuse of PPP funds by knowingly failing to comply with applicable program requirements, including approving PPP loans in inflated amounts and to ineligible borrowers.”

    Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The SBA administered the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans so long as they used loan funds on employee payroll and other eligible expenses. Among other things, participating PPP lenders were required to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. Lenders were also required to follow applicable Bank Secrecy Act/Anti-Money Laundering requirements to help combat fraud. Any unforgiven or defaulted PPP loans made by lenders were guaranteed by the SBA, so long as the lenders adhered to PPP requirements. Lenders who originated PPP loans were paid a fixed fee calculated as a percentage of the loan amount by the SBA.

    According to the government’s complaint, Frohwein and Petralia co-founded Kabbage in 2008 and served as the company’s chief executive officer and president, respectively, while Robinson formerly served as the company’s head of strategy. Kabbage was approved as a PPP lender in 2020 and approved more than $7 billion in PPP loans that year for which the company was paid more than $217 million in processing fees after certifying that it had complied with all applicable lending requirements.

    The complaint alleges that, between April and October 2020, the defendants knowingly submitted or caused the submission of false claims for loan guarantees, loan forgiveness and processing fees relating to tens of thousands of PPP loans that were systemically inflated due to calculation errors by Kabbage. These errors allegedly included Kabbage’s double-counting of state and local taxes paid by employees and the failure to exclude annual compensation in excess of $100,000 per employee from its calculation of payroll costs. Additionally, the lawsuit alleges that the defendants knowingly submitted or caused the submission of false claims for processing fees related to tens of thousands of PPP loans where Kabbage failed to implement appropriate fraud controls. The government’s complaint alleges that the defendants ignored these violations to maximize PPP processing fees before selling off the majority of Kabbage’s assets in October 2020.

    Kabbage Inc., which is now winding down its operations as KServicing Wind Down Corp. after filing for bankruptcy in the wake of the 2020 asset sale, previously agreed to resolve allegations relating to its role in the submission of false claims to the SBA. As part of that settlement, the United States received a general unsecured claim in the bankruptcy proceeding of up to $120 million, and the company received a credit for $12.5 million that Kabbage returned to SBA during the department’s investigation.

    “The PPP was a light providing hope to businesses in the midst of the shadow of a global pandemic,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Unfortunately, some unscrupulous lenders and executives took advantage of that situation by lining their pockets with ill-gotten incentive payments from processing PPP loans despite not performing even the most cursory fraud checks or reviews of borrower documentation. Individuals who shirked their responsibilities at the expense of the public fisc must be held accountable. This lawsuit against Kabbage’s former executives demonstrates our firm commitment to holding all parties responsible for their part in causing the submission of false claims to the PPP.”

    “SBA’s lending partners have a responsibility to ensure only eligible borrowers gain access to SBA’s programs,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA OIG)’s Central Region. “SBA OIG stands ready to support the Justice Department in rooting out greed and wrongful actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

    The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Paul Pietschner, a former analyst in Kabbage’s collections department. The FCA permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The FCA also permits the United States to intervene in such an action, as it has done in this case. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties. 

    On May 17, 2021, Attorney General Merrick B. Garland established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal 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 actors committing civil and criminal fraud 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 www.justice.gov/coronavirus.

    Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Betty Young for the Eastern District of Texas are handling the matter, with assistance provided by the SBA’s Office of General Counsel and Office of the Inspector General.

    The case is captioned United States ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (EDTX).

    The claims asserted by the United States are allegations only. There has been no determination of liability.

    MIL Security OSI

  • MIL-OSI Security: Medicare Advantage Provider Independent Health to Pay Up To $98M to Settle False Claims Act Suit

    Source: United States Attorneys General 7

    Independent Health Association and its affiliate, Independent Health Corporation (collectively, Independent Health) have agreed to pay up to $98 million to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission of invalid diagnosis codes to Medicare for Medicare Advantage Plan enrollees to increase payments that Independent Health received from Medicare. Independent Health is headquartered in Buffalo, New York.

    Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with diagnoses more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.

    Independent Health operates MA plans for beneficiaries living in western New York. As alleged by the United States, Independent Health created a wholly owned subsidiary, DxID LLC, to retrospectively search medical records and query physicians for information that would support additional diagnoses that could be used to generate higher risk scores, and DxID provided these services to Independent Health and other MA Plans. The United States filed a complaint alleging that, from 2011 through at least 2017, Independent Health, with the assistance of DxID and its founder and chief executive, Betsy Gaffney, knowingly submitted diagnoses to CMS that were not supported by the beneficiaries’ medical records in order to inflate Medicare’s payments to Independent Health.

    “The government expects those who participate in Medicare Advantage to provide accurate information to ensure that proper payments are made for the care received by enrolled beneficiaries,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “Today’s result sends a clear message to the Medicare Advantage community that the United States will take appropriate action against those who knowingly submit inflated claims for reimbursement.”

    “To protect the integrity of Medicare and other federal health care programs, my office is committed to ensuring that each and every dollar meant for Medicare beneficiaries is spent appropriately and in accordance with the law,” said U.S. Attorney Trini E. Ross for the Western District of New York. “As this settlement makes clear, we will diligently pursue those who defraud government programs.”

    “Medicare Advantage Plans that attempt to game federal programs for profit must be held accountable through rigorous oversight and enforcement,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to root out fraud, waste and abuse in federal health care programs.”

    Under the terms of the settlement, Independent Health will make guaranteed payments of $34,500,000 and contingent payments of up to $63,500,000 on behalf it itself and DxID, which ceased operations in 2021. The settlement is based on Independent Health’s ability to pay. Gaffney will separately pay $2,000,000.

    In connection with the settlement, Independent Health entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. The CIA requires, among other things, that Independent Health hire an Independent Review Organization to annually review a sample of Independent Health’s Medicare Advantage patients’ medical records and associated internal controls to help ensure appropriate risk adjustment payments.

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Teresa Ross, a former employee of Group Health Cooperative, now Kaiser Foundation Health Plan of Washington (Kaiser). Under the qui tam provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits as it has done in this case. Ms. Ross will receive at least $8,212,500 of the settlement announced today. Ms. Ross also alleged that Kaiser employed DxID to identify additional diagnoses to be submitted to Medicare for risk adjustment, and the United States previously settled those claims with Kaiser.

    The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS, at 800-HHS-TIPS (800-447-8477).

    Attorneys Samson Asiyanbi and David Wiseman of the Civil Division’s Fraud Section and Assistant U.S. Attorney David Coriell and investigator Peggy McFarland for the Western District of New York handled the matter, with assistance from the HHS-OIG Buffalo Regional Office.

    The case is captioned United States ex rel. Ross v. Independent Health Association et al., No. 12-CV-0299(S) (WDNY).

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    View the settlement here.

    MIL Security OSI

  • MIL-OSI USA: Proclamation to Implement the United  States-Israel Agreement on Trade in Agricultural Products and for Other  Purposes

    US Senate News:

    Source: The White House
         1.  On April 22, 1985, the United States and Israel entered into the Agreement on the Establishment of a Free Trade Area between the Government of the United States of America and the Government of Israel (USIFTA), which the Congress approved in section 3 of the United States–Israel Free Trade Area Implementation Act of 1985 (the “USIFTA Implementation Act”) (Public Law 99-47, 99 Stat. 82 (19 U.S.C. 2112 note)).  Section 4(b) of the USIFTA Implementation Act provides that, whenever the President determines that it is necessary to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the USIFTA, the President may proclaim such withdrawal, suspension, modification, or continuance of any duty, or such continuance of existing duty-free or excise treatment, or such additional duties, as the President determines to be required or appropriate to carry out the USIFTA.  In order to maintain the general level of reciprocal and mutually advantageous concessions with respect to agricultural trade with Israel, on July 27, 2004, the United States entered into an agreement with Israel concerning certain aspects of trade in agricultural products during the period January 1, 2004, through December 31, 2008 (United States-Israel Agreement Concerning Certain Aspects of Trade in Agricultural Products (the “2004 Agreement”)).     2.  In Proclamation 7826 of October 4, 2004, the President determined, pursuant to section 4(b) of the USIFTA Implementation Act and consistent with the 2004 Agreement, that, in order to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the USIFTA, it was necessary to provide duty-free access into the United States through December 31, 2008, for specified quantities of certain agricultural products of Israel.  Each year from 2008 through 2023, the United States and Israel entered into agreements to extend the period that the 2004 Agreement was in force for 1-year periods to allow additional time for the two governments to conclude an agreement to replace the 2004 Agreement.  To carry out the extension agreements, the President in Proclamations 8334 of December 31, 2008; 8467 of December 23, 2009; 8618 of December 21, 2010; 8770 of December 29, 2011; 8921 of December 20, 2012; 9072 of December 23, 2013; 9223 of December 23, 2014; 9383 of December 21, 2015; 9555 of December 15, 2016; 9687 of December 22, 2017; 9834 of December 21, 2018; 9974 of December 26, 2019; 10128 of December 22, 2020; 10326 of December 23, 2021; 10509 of December 23, 2022; and 10692 of December 29, 2023, modified the Harmonized Tariff Schedule of the United States (HTS) to provide duty-free access into the United States for specified quantities of certain agricultural products of Israel, each time for an additional 1-year period.  On October 31, 2024, the United States entered into an agreement with Israel to extend the period that the 2004 Agreement is in force through December 31, 2025, and to allow for further negotiations on an agreement to replace the 2004 Agreement.  Pursuant to section 4(b) of the USIFTA Implementation Act, I have determined that it is necessary, in order to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the USIFTA, to provide duty-free access into the United States through the close of December 31, 2025, for specified quantities of certain agricultural products of Israel, as provided in Annex I of this proclamation.    3.  Proclamation 10053 of June 29, 2020, implemented the Agreement between the United States of America, the United Mexican States, and Canada (USMCA) with respect to the United States and, pursuant to section 103 of the United States-Mexico-Canada Agreement Implementation Act (the “USMCA Implementation Act”) (Public Law 116-113, 134 Stat. 11, 15-17 (19 U.S.C. 4513)), incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out the USMCA.    4.  In order to provide generally for the preferential tariff treatment being accorded under the USMCA, to set forth rules for determining whether goods imported into the customs territory of the United States are eligible for preferential tariff treatment under the USMCA, to provide tariff-rate quotas with respect to certain originating goods of Canada, and to provide certain other treatment to originating goods for purposes of the USMCA, Proclamation 10053 modified the HTS as set forth in Annex I of Publication 5060 of the United States International Trade Commission (the “Commission”), entitled “Modifications to the Harmonized Tariff Schedule of the United States to Implement the United States-Mexico-Canada Agreement” (Publication 5060), including by adding general note 11.  Proclamation 10053 further modified the HTS to reflect the termination of tariff treatment under the North American Free Trade Agreement (NAFTA), as set forth in Annex III of Publication 5060, including by deleting general note 12.     5.  In order to implement the initial stage of duty reduction provided for in the USMCA, to provide for future staged reductions in duties for originating goods provided for in the USMCA, and to provide tariff-rate quotas with respect to certain goods provided for in the USMCA, Proclamation 10053 modified the HTS as set forth in Annex II of Publication 5060.      6.  A technical error was made in the modifications to U.S. note 3(d) to subchapter II of chapter 98 of the HTS, and certain references to general note 12 were inadvertently not modified.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the USMCA, including certain technical or conforming changes within the tariff schedule.      7.  Proclamation 7987 of February 28, 2006, implemented the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) with respect to the United States and, pursuant to section 201 of the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (the “DR-CAFTA Act”) (Public Law 109-53, 119 Stat. 462, 467 (19 U.S.C. 4001 note)), incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out certain provisions of the DR-CAFTA.      8.  A rule of origin under the DR-CAFTA, found in general note 29 to the HTS, contains a reference to general note 12.  Proclamation 10053 deleted general note 12 but omitted a conforming change to the reference in general note 29.  I have determined that an additional modification to the HTS is necessary or appropriate to reflect this conforming change.     9.  Section 602 of the Consolidated Appropriations Act, 2021 (Public Law 116-260, 134 Stat. 1182, 2152-54), made technical corrections to other laws, including replacing certain references to the NAFTA with references to the USMCA in sections 112 and 113(b) of the African Growth and Opportunity Act (the “AGOA”) (title I of Public Law 106-200, 114 Stat. 251, 258-265 (19 U.S.C. 3721, 3722(b))), as amended by the Africa Investment Incentive Act of 2006 (title VI of Public Law 109-432, 120 Stat. 2922, 3190-94), and in sections 212(a), 213(b), and 213A(b) of the Caribbean Basin Economic Recovery Act (the “CBERA”) (title II of Public Law 98-67, 97 Stat. 369, 384-85, 388 (19 U.S.C. 2702(a)(1), 2703(b), 2703a(b))), as amended by the United States-Caribbean Basin Trade Partnership Act (title II of Public Law 106-200, 114 Stat. 251, 275-288), the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (title V of Public Law 109-432, 109 Stat. 2922, 3181-87), and the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (subtitle D of Public Law 110-234, 122 Stat. 923, 1527-47).    10.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the AGOA and the CBERA, including certain technical or conforming changes within the tariff schedule.    11.  Section 104(c) of the Trade Preferences Extension Act of 2015 (the “TPEA”) (Public Law 114–27, 129 Stat. 362, 365 (19 U.S.C. 2466a note)) authorizes the President to proclaim modifications that may be necessary to add the special tariff treatment symbol “D” in the “Special” subcolumn of the HTS for each article classified under a heading or subheading with the special tariff treatment symbol “A” or “A” in the “Special” subcolumn of the HTS.  Pursuant to section 104(c) of the TPEA, Proclamation 9466 of June 30, 2016, modified the HTS to add the special tariff treatment symbol “D” in the HTS as set forth in Annex III of that proclamation.     12.  The modifications to the HTS authorized in Proclamation 9466 included certain technical errors.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the AGOA, as authorized by section 104(c) of the TPEA, including certain technical or conforming changes within the tariff schedule.     13.  Proclamation 6763 of December 23, 1994, implemented, with respect to the United States, the trade agreements resulting from the Uruguay Round of multilateral trade negotiations, including Schedule XX-United States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 (Schedule XX), that were entered into pursuant to sections 1102(a) and (e) of the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”) (Public Law 100-418, 102 Stat. 1107, 1126 (19 U.S.C. 2902(a) and (e))), as amended by Public Law 103-49, 107 Stat. 239, and approved in section 101(a) of the Uruguay Round Agreements Act (the “URAA”) (Public Law 103-465, 108 Stat. 4809, 4814–15 (19 U.S.C. 3511(a))).      14.  Pursuant to the authority provided in section 111 of the URAA (19 U.S.C. 3521) and sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 2902(a) and (e)), Proclamation 6763 included the staged reductions in rates of duty that the President determined to be necessary or appropriate to carry out the terms of Schedule XX.     15.  Section 1205(a) of the 1988 Act (102 Stat. 1150 (19 U.S.C. 3005(a))) directs the Commission to keep the HTS under continuous review and to periodically recommend to the President such modifications to the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.     16.  Pursuant to sections 1205(c) and (d) of the 1988 Act (102 Stat. 1150-51 (19 U.S.C. 3005(c) and (d))), in 2010, 2015, and 2021, the Commission recommended modifications to the HTS to conform the HTS to amendments made to the International Convention on the Harmonized Commodity Description and Coding System and the Protocol thereto (the “Convention”).     17.  Section 1206(a) of the 1988 Act (102 Stat. 1151 (19 U.S.C. 3006(a))) authorizes the President to proclaim modifications to the HTS based on the recommendations of the Commission under section 1205 of the 1988 Act if the President determines that the modifications are in conformity with United States obligations under the Convention and do not run counter to the national economic interest of the United States.     18.  Proclamation 8771 of December 29, 2011, Proclamation 9549 of December 1, 2016, and Proclamation 10326 of December 23, 2021, modified the HTS pursuant to section 1206 of the 1988 Act to conform the HTS to the amendments to the Convention.  However, the HTS modifications authorized in Proclamation 8771, Proclamation 9549, and Proclamation 10326 each included certain technical errors.     19.  Proclamation 8771 incorrectly modified the column 2 rate of duty for subheadings 0401.40.25 and 0401.50.25, and the “General” subcolumn rate of duty for column 1 and the column 2 rate of duty for subheading 6505.00.01.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment.     20.  Proclamation 9549 and Proclamation 10326 each created certain new subheadings with the special tariff treatment symbol “A” or “A” in the “Special” subcolumn of the HTS, but omitted the special tariff treatment symbol “D”.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the AGOA, including certain technical or conforming changes within the tariff schedule.    21.  Proclamation 10326 also included technical errors with respect to other subheadings.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment, including the tariff treatment previously proclaimed in Proclamation 6763.    22.  In Proclamation 9705 of March 8, 2018, pursuant to section 232 of the Trade Expansion Act of 1962, as amended (the “Trade Expansion Act”) (Public Law 87-794, 76 Stat. 872, 877 (19 U.S.C. 1862)), the President concurred with the finding of the Secretary of Commerce that steel articles, as defined in clause 1 of Proclamation 9705 (as amended by clause 8 of Proclamation 9711 of March 22, 2018), are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of steel articles by imposing a 25 percent ad valorem tariff on such articles imported from all countries except Canada and Mexico.  Proclamation 9740 of April 30, 2018, and Proclamation 9759 of May 31, 2018, modified the HTS to provide quotas with respect to steel articles imported from certain countries.  Proclamation 10328 of December 27, 2021, Proclamation 10356 of March 31, 2022, Proclamation 10406 of May 31, 2022, and Proclamation 10691 of December 28, 2023, modified the HTS to provide tariff-rate quotas with respect to steel articles imported from certain countries.     23.  On July 1, 2024, the Commission, in cooperation with the interagency Committee for Statistical Annotation of Tariff Schedules, implemented certain changes in 10-digit statistical reporting categories of the HTS under section 484(f) of the Tariff Act of 1930 (ch. 497, 46 Stat. 590, 723 (19 U.S.C. 1484(f))), as amended by section 637 of the North American Free Trade Agreement Implementation Act (Public Law 103-182, 107 Stat. 2057, 2202).  I have determined that certain conforming amendments to the HTS are necessary in order to ensure the maintenance of duty rates, quotas, and tariff-rate quotas for steel articles under tariff categories that were modified.    24.  Section 604 of the Trade Act of 1974, as amended (the “Trade Act”) (Public Law 93-618, 88 Stat. 1978, 2073 (19 U.S.C. 2483)), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions taken thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.      NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to section 4(b) of the USIFTA Implementation Act, section 104(c) of the TPEA, section 1206(a) of the 1988 Act, section 232 of the Trade Expansion Act, and section 604 of the Trade Act, do proclaim that:      (1)  In order to implement tariff commitments under the 2004 Agreement through December 31, 2025, the HTS is modified as set forth in Annex I of this proclamation.    (2)  The modifications and technical rectifications to the HTS made by Annex I of this proclamation shall enter into effect on the applicable dates set forth in Annex I of this proclamation.    (3)  In order to make the modifications and technical rectifications to the HTS described in paragraphs 3 through 24 of this proclamation, the HTS is modified as set forth in Annex II of this proclamation.  These modifications and technical rectifications shall enter into effect on the applicable dates set forth in Annex II of this proclamation.    (4)  Any provisions of previous proclamations and Executive Orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.    IN WITNESS WHEREOF, I have hereunto set my hand thistwentieth day of December, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-ninth.
                            JOSEPH R. BIDEN JR.

    MIL OSI USA News

  • MIL-OSI USA: Amendments to Executive Orders Relating to Certain Certificates and  Badges

    US Senate News:

    Source: The White House
         By the authority vested in me as President by the Constitution and the laws of the United States of America, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
         Section 1.  Amendments to Executive Order 12793, as Amended.  Executive Order 12793 of March 20, 1992 (Continuing the Presidential Service Certificate and the Presidential Service Badge), as amended by Executive Order 13286 of February 28, 2003 (Amendment of Executive Orders, and Other Actions, in Connection With the Transfer of Certain Functions to the Secretary of Homeland Security), is further amended by:
         (a)  Amending section 1 to read as follows:
         “Section 1.  Presidential Service Certificate.  The Presidential Service Certificate (Certificate) is hereby continued, the design of which accompanies and is hereby made a part of this order.  The Certificate shall be awarded in the name of the President of the United States to members of the United States Uniformed Services who have been assigned to the White House Office; to military units and support facilities under the administration of the White House Military Office; or to other direct support positions within the Executive Office of the President (EOP).  The Certificate shall be awarded by the Secretary of the military department concerned, or, when the Coast Guard is not operating as a service in the Navy, by the Secretary of Homeland Security, and, in the case of members of the Commissioned Corps of the National Oceanic and Atmospheric Administration or the Commissioned Corps of the Public Health Service, by the Secretary of Commerce or the Secretary of Health and Human Services, respectively.  The Certificate shall not be issued to any member who is issued a Vice Presidential Certificate, or similar EOP Certificate, for the same period of service.  Such assignment must be for a period of at least 1 year, subsequent to January 21, 1989.”; and
         (b)  Amending section 2 to read as follows:
         “Sec. 2.  Presidential Service Badge.  The Presidential Service Badge (Badge) is hereby continued, the design of which accompanies and is hereby made a part of this order.  The Badge shall be awarded to those members of the United States Uniformed Services who have been granted the Certificate and shall be awarded in the same manner in which the Certificate has been given.  The Badge shall be worn as a part of the uniform of those individuals under such regulations as their respective Secretaries may severally prescribe.”.
         Sec. 2.  Amendments to Executive Order 11926, as Amended.  Executive Order 11926 of July 19, 1976 (The Vice Presidential Service Badge), as amended by Executive Order 13286 and by Executive Order 13373 of March 10, 2005 (Amendments to Executive Order 11926 Relating to the Vice Presidential Service Badge), is further amended by:
         (a)  Amending section 1 to read as follows:
         “Section 1.  There is established a Vice Presidential Service Badge to be awarded in the name of the Vice President of the United States of America to members of the United States Uniformed Services who have been assigned to duty in the Office of the Vice President for a period of at least 1 year subsequent to December 19, 1974, or who have been assigned to perform duties predominantly for the Vice President for a period of at least 1 year subsequent to January 20, 2001, in the implementation of Public Law 93-346, as amended, or in military units and support facilities to which section 1 of Executive Order 12793 of March 20, 1992, as amended, refers.”;
         (b)  Amending section 2 to read as follows:
         “Sec. 2.  The Vice Presidential Service Badge may be awarded, upon recommendation of the Vice President’s designee (with the concurrence of the Director of the White House Military Office in the case of personnel in military units or support facilities to which section 1 of Executive Order 12793, as amended, refers), by the Secretary of the military department concerned, or, when the Coast Guard is not operating as a service in the Navy, by the Secretary of Homeland Security, to military personnel of their respective services who have been assigned to duty in the Office of the Vice President and, in the case of members of the Commissioned Corps of the National Oceanic and Atmospheric Administration or the Commissioned Corps of the Public Health Service so assigned, by the Secretary of Commerce or the Secretary of Health and Human Services, respectively.”;
         (c)  Amending section 4 to read as follows:
         “Sec. 4.  Upon award, the Vice Presidential Service Badge may be worn as a part of the uniform of an individual both during and after their assignment to duty in the Office of the Vice President.”; and
         (d)  Amending section 6 to read as follows:
         “Sec. 6.  Notwithstanding the provisions of sections 1 and 2 of this order, any member of the United States Uniformed Services, who has been assigned to duty in the Office of the Vice President, or who has been assigned to perform duties predominantly for the Vice President, in the implementation of Public Law 93-346, as amended, or in military units and support facilities to which section 1 of Executive Order 12793, as amended, refers, is authorized, unless otherwise directed by the Director of the White House Military Office in the case of personnel in military units and support facilities to which section 1 of Executive Order 12793, as amended, refers, to wear the Vice Presidential Service Badge on their uniform commencing on the first day of such duty and thereafter while assigned to such duty.”.
         Sec. 3.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:
    (i)   the authority granted by law to an executive department or agency, or the head thereof; or
    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
         (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
         (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
                                 JOSEPH R. BIDEN JR.
    THE WHITE HOUSE,
        December 20, 2024.

    MIL OSI USA News

  • MIL-OSI USA: 2024 Amendments to the Manual for Courts-Martial, United  States

    US Senate News:

    Source: The White House
         By the authority vested in me as President by the Constitution and the laws of the United States of America, including chapter 47 of title 10, United States Code (Uniform Code of Military Justice, 10 U.S.C. 801-946a), and in order to prescribe additions and amendments to the Manual for Courts-Martial, United States, prescribed by Executive Order 12473 of April 13, 1984, as amended, it is hereby ordered as follows:
         Section 1.  Part II, Part III, Part IV, and Part V of the Manual for Courts-Martial, United States, are amended as described in the Annex attached to and made a part of this order.
         Sec. 2.  With this order, I hereby prescribe regulations for the randomized selection of qualified personnel as members of a court-martial to the maximum extent practicable, pursuant to section 543 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, Public Law 117-263 (10 U.S.C. 825(e)(4)).
         Sec. 3.  Except as provided in sections 4 and 5 of this order, these amendments shall take effect on the date of this order, subject to the following:
         (a)  Nothing in these amendments shall be construed to make punishable any act committed or omitted prior to the date of this order that was not punishable when committed or omitted.
         (b)  Nothing in these amendments shall be construed to invalidate any nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action begun prior to the date of this order, and any such nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action may proceed in the same manner and with the same effect as if these amendments had not been prescribed.
         Sec. 4.  The amendments to Rule for Courts-Martial (R.C.M.) 908(c)(3), R.C.M. 1205(a), and R.C.M. 1209(a)(1) shall take effect on December 22, 2024, subject to the following:
         (a)  Nothing in these amendments shall be construed to make punishable any act committed or omitted prior to the effective date that was not punishable when committed or omitted.
         (b)  Nothing in these amendments shall be construed to invalidate any nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action begun prior to the  effective date, and any such nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action may proceed in the same manner and with the same effect as if these amendments had not been prescribed.
         Sec. 5.  The amendment to R.C.M. 503(a)(1) shall take effect on December 23, 2024, subject to the following:
         (a)  Nothing in this amendment shall be construed to make punishable any act committed or omitted prior to the effective date that was not punishable when committed or omitted.
         (b)  Nothing in this amendment shall be construed to invalidate any nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action begun prior to the  effective date, and any such nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action may proceed in the same manner and with the same effect as if this amendment had not been prescribed.
                                 JOSEPH R. BIDEN JR.
    THE WHITE HOUSE,
        December 20, 2024.

    MIL OSI USA News

  • MIL-OSI USA: SEC Adopts Rule Amendments to the Broker-Dealer Customer Protection Rule

    Source: Securities and Exchange Commission

    The Securities and Exchange Commission today adopted amendments to Rule 15c3-3 (the customer protection rule) to require certain broker-dealers to increase the frequency with which they perform computations of the net cash they owe to customers and other broker-dealers (known as PAB account holders) from weekly to daily. The Commission also adopted amendments to Rule 15c3-3 and Rule 15c3-1 (the broker-dealer net capital rule) to permit certain broker-dealers that perform a daily customer reserve computation to decrease the required 3 percent “buffer” in the customer reserve bank account by reducing the customer-related receivables, or “aggregate debit items,” charge from 3 percent to 2 percent in the computation.

    “Our markets have dramatically evolved since the 1972 adoption of Rule 15c3-3, otherwise known as the Customer Protection Rule,” said SEC Chair Gary Gensler. “I’m pleased to support this adoption because it helps protect customers and the Securities Investor Protection Corporation Fund, while promoting greater trust in the markets.”

    Broker-dealers may have large deposit requirements that indicate that there may be times when the net amount of cash owed to customers and PAB account holders is substantially greater than the amounts on deposit in the special reserve bank accounts. The amendments will require broker-dealers with average total credits (the amount of cash they owe customers and PAB account holders) equal to or greater than $500 million to make the computations necessary to determine the amounts required to be deposited in the customer and PAB reserve bank accounts daily, as of the close of the previous business day. By reducing the timeframe between computations, the amendments will assist broker-dealers in more dynamically matching the net amount of cash owed to customers and PAB account holders with the amount on deposit in the broker-dealer’s customer and PAB reserve bank accounts. The amendments will also more quickly apply the protective measures of the Rule 15c3-3 reserve requirements to cash of customers and PAB account holders that is newly deposited into the broker-dealer. This will reduce the risk that, if the broker-dealer fails financially, it may be unable to promptly return cash and securities to customers and PAB account holders through an orderly self-liquidation.

    Today’s amendments also recognize that the enhancements to the customer protection measures of Rule 15c3-3 through a daily reserve computation warrant a corresponding reduction of the 3 percent “buffer” that certain broker-dealers must include as part of their customer reserve computation to 2 percent.

    The amendments will become effective 60 days after the date of publication of the adopting release in the Federal Register. Broker-dealers that exceed the $500 million threshold using each of the 12 filed month-end FOCUS Reports from July 31, 2024, through June 30, 2025, must perform the customer and PAB reserve computations daily beginning no later than December 31, 2025 (i.e., six months after June 30, 2025). When the amendments are effective, a carrying broker-dealer may voluntarily perform a daily customer reserve computation and apply the 2 percent aggregate debit items reduction, provided it notifies its designated examining authority in writing at least 30 calendar days prior.

    MIL OSI USA News

  • MIL-OSI USA: Department of Natural Resources awards $226,000 to Palmyra

    Source: US State of Missouri

    City will plan and design drinking water system improvements

    JEFFERSON CITY, MO, DEC. 20, 2024 – The Missouri Department of Natural Resources has awarded a $226,000 loan to the city of Palmyra for planning and design work related to the city’s ongoing drinking water improvement project.

    These funds will provide vital interim financing to cover early engineering and administrative costs while the city works with the department to secure a larger loan and grant funding package for its drinking water project. The larger project is estimated to cost approximately $3.3 million and construction is estimated to start in 2026.

    The early planning phases of infrastructure projects often represent a significant financial burden for cash-limited communities with water and wastewater needs. The planning and design loan program’s goal is to provide a cost-effective alternative to expensive private financing that will allow communities to develop and deliver vital infrastructure projects for their citizens. These planning and design loans bear no interest and come with a five-year term. The funding provided by the department is estimated to save the city’s ratepayers approximately $30,000 in interest.

    “Grants and low-interest loans through the State Revolving Fund help Missouri communities like Palmyra fund treatment system improvements that they might not have been able to undertake otherwise,” said Dru Buntin, director of the Missouri Department of Natural Resources. “Projects like this ultimately help protect public health and the environment, which improves the quality of life for Missourians.”

    The department’s Drinking Water State Revolving Fund finances improvements to water treatment plants, distribution systems, water storage and supply facilities, along with interconnection or consolidation projects. Communities that borrow from the fund benefit from the below-market interest rate and from assistance provided throughout their project from a project manager.

    The department’s Financial Assistance Center is committed to working with communities to assist with water and wastewater infrastructure improvement projects. This project will be funded wholly or in part with monies received from the U. S. Environmental Protection Agency.

    For more information on wastewater and drinking water funding opportunities, visit dnr.mo.gov/water/what-were-doing/state-revolving-fund-srf.

    MIL OSI USA News

  • MIL-OSI Security: Two Arizonans Plead Guilty to Fraud Targeting AHCCCS

    Source: Office of United States Attorneys

    PHOENIX, Ariz. – CoEric Riley, 38, of Mesa, pleaded guilty on Tuesday to Healthcare Fraud. His co-defendant, Britney Gooch, 37, of Mesa, also pleaded guilty to Healthcare Fraud on November 21, 2024. Sentencing for Riley and Gooch is scheduled for February 21, 2025, before United States District Judge Krissa M. Lanham.

    Riley and Gooch admitted that they defrauded the Arizona Health Care Cost Containment System (AHCCCS), Arizona’s Medicaid agency, through their company New Horizons Behavioral Health, a behavioral health clinic in Mesa, Arizona. They further admitted that through New Horizons, they exploited AHCCCS’s American Indian Health Program (AIHP) by falsely billing for services that were not provided to AIHP patients. As a result of the fraudulent billing submissions, Riley and Gooch obtained approximately $3.3 million in illegitimate proceeds from AHCCCS.

    A conviction for Healthcare Fraud carries a maximum penalty of 10 years in prison and a fine of up to $250,000, or both.

    The Federal Bureau of Investigation – Phoenix Division conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
     

    CASE NUMBER:           CR-24-01794-PHX-KML
    RELEASE NUMBER:    2024-179_Riley and Gooch

     

    # # #

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

    MIL Security OSI

  • MIL-OSI Security: Colorado Man Sentenced To 60 Months In Prison For Assaulting Federal Officer

    Source: Office of United States Attorneys

    DURANGO – The United States Attorney’s Office for the District of Colorado announces that Daniel Lehi, 44, of Towaoc, Colorado, was sentenced to 60 months in prison and three years of supervised release after pleading guilty to one count of assaulting a federal officer.

    On April 5, 2024, a Bureau of Indian Affairs Officer responded to the Ute Mountain Ute Casino in Towaoc, Colorado, within the exterior boundaries of the Ute Mountain Ute Reservation, on a report of an intoxicated person, later identified as Lehi. Lehi lunged at the officer and struck him in the face. When additional security personnel responded to the incident, Lehi continued to fight until officers were able to subdue him.

    United States District Court Judge Gordon P. Gallagher sentenced Lehi after considering numerous sentencing factors, including the defendant’s history of assaults on law enforcement officers.

    “Assault on a law enforcement officer is a serious offense, and this defendant received a serious sentence for his actions,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “I want to acknowledge the BIA officer for deftly handling a challenging situation.”

    “This attack on a federal officer simply doing his job is unacceptable. We fully support the officer who is a victim in this case and are steadfast in our commitment to pursuing justice in cases involving assaults on law enforcement officers,” said FBI Denver Special Agent in Charge Mark Michalek. “Such acts will not go unanswered, and we will work tirelessly to ensure accountability.”

    The Federal Bureau of Investigation Durango Field Office and the Bureau of Indian Affairs handled the investigation. Assistant United States Attorney Lisa Franceware handled the prosecution.

    Case Number: 1:24-cr-00182-GPG

    MIL Security OSI

  • MIL-OSI Security: Syracuse Man Pleads Guilty to Distribution and Possession of Child Pornography

    Source: Office of United States Attorneys

    SYRACUSE, NEW YORK – David Hullihen, age 41, of Syracuse, pled guilty today to ten counts of receipt of child pornography. United States Attorney Carla B. Freedman, and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.

    As part of his guilty plea, Hullihen admitted that he sent multiple videos depicting child sexual abuse material to another person over the application Wire. Hullihen also possessed child sexual abuse material on his cell phone. Hullihen is a registered sex offender with two previous convictions for child pornography offenses in New York.

    The offenses to which Hullihen pled guilty carry a mandatory minimum sentence of 15 years, with a maximum of 40 years imprisonment. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the United States Sentencing Guidelines, and other factors.  However, if Chief United States District Judge Brenda K. Sannes accepts the parties’ agreed-upon disposition at sentencing on April 23, 2025, Hullihen will receive an prison term of 235 months. Hullihen’s sentence must also include a post-imprisonment term of supervised release of between five years and life, a fine of up to $250,000.00, restitution to the children whose images he distributed and possessed, and he will be required to register as a sex offender upon his release from prison. 

    This case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, the Tiffin, Ohio Police Department, the Syracuse, New York Police Department, and the New York State Police. Special Assistant U.S. Attorney Paul Tuck prosecuted Hullihen as part of Project Safe Childhood. 

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

    MIL Security OSI

  • MIL-OSI Security: Chinese National Indicted for Money Laundering Conspiracy Involving Walmart Gift Cards

    Source: Office of United States Attorneys

    SYRACUSE, NEW YORK – Jun Wang, age 62, a Chinese national and lawful permanent resident of the United States who has lived in Florida and Texas for most of the past 26 years, has been charged by indictment with conspiracy to commit money laundering. United States Attorney Carla B. Freedman and Craig L. Tremaroli Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. 

    The indictment alleges that between June 2019 and June 2021 Wang received gift cards which had been obtained from victims of wire fraud schemes in the Northern District of New York and elsewhere and that he used the fraudulently obtained gift cards – totaling more than $2 million – at Walmart and Sam’s Club stores in Florida and other states to buy other gift cards and thereby disguise the source and nature of the funds obtained from the fraud victims.

    The charge filed against Wang carries a maximum sentence of 20 years in federal prison, a fine of up to twice the value of the allegedly laundered funds, or $4 million in this case, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.

    Wang was arrested several weeks ago at Los Angeles International Airport, and arraigned this week in Binghamton, New York, before Magistrate Judge Miroslav Lovric, after being transported to the Northern District of New York. Judge Lovric ordered Wang detained pending trial, which is expected to be held sometime in 2025 before Senior United States District Judge David N. Hurd.

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

    The FBI is investigating the case, which is being prosecuted by Assistant U.S. Attorneys Tamara B. Thomson and Michael F. Perry.

    MIL Security OSI

  • MIL-OSI Security: Beverly Hills and Ventura County Men Indicted for Allegedly Running NFT Crypto Fraud that Conned Investors Out of More Than $22 Million

    Source: Office of United States Attorneys

    LOS ANGELES – A six-count indictment was unsealed today charging two Southern California men with defrauding investors of more than $22 million in cryptocurrency through a series of digital asset project “rugpulls,” a type of fraud scheme in which the creator of a nonfungible token (NFT) or other digital asset project solicits funds from investors for the project and then abruptly abandons the project and fraudulently retains investors’ funds.

    Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, are each charged with one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking.

    Their arraignments are scheduled for this afternoon in United States District Court in downtown Los Angeles.

    “Whenever a new investment trend occurs, scammers are sure to follow,” said United States Attorney Martin Estrada. “My office and our law enforcement partners will continue our efforts to protect consumers and punish wrongdoers involved in crypto fraud.”

    “Gabriel Hay and Gavin Mayo allegedly defrauded investors in digital asset projects of tens of millions of dollars and threatened an individual who attempted to expose their roles in these fraudulent schemes,” said Principal Deputy Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money. The department is committed to protecting investors and will continue to work with our law enforcement partners to root out fraud involving cryptocurrency and other digital assets and bring offenders to justice.”

    “For three years, Hay and Mayo allegedly lied to their investors in order to defraud them out of millions of dollars,” said HSI Executive Associate Director Katrina W. Berger. “Such technological fraud schemes cost investors millions of dollars every year. Just because such crimes aren’t violent does not mean they are victimless. HSI will continue to investigate, disrupt, and dismantle such cryptocurrency fraud networks.”

    According to court documents, from May 2021 to May 2024, Hay and Mayo sponsored several NFT and other digital asset projects and undertook promotional activities in support of those projects. Hay and Mayo allegedly made or caused others to make materially false and misleading statements regarding the digital asset projects being launched and provided false and misleading project “roadmaps” detailing plans for the NFTs or digital asset projects after their launch that the sponsors never intended to fulfill.

    For example, the indictment alleges that in promoting the Vault of Gems NFT project, Hay and Mayo falsely claimed that the project would be the “first NFT project to be pegged to a hard asset.” However, instead of pursuing the Vault of Gems project or others as they had represented they would, Hay and Mayo allegedly abandoned the projects after collecting millions in funds from investors.

    Hay, Mayo, and others allegedly used these tactics with a variety of other digital asset projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. Hay and Mayo also allegedly used a variety of means to conceal their involvement in the fraudulent projects by falsely identifying other individuals or causing other individuals to be falsely identified as owners of the projects.

    When one project manager on the Faceless NFT project exposed Hay and Mayo as being behind that project, Hay and Mayo allegedly embarked on a harassment campaign against the project manager, sending or causing the sending of messages to the project manager and his parents for the purpose of intimidating him and his family and causing them great emotional distress.

    “Using NFTs to commit fraud not only exploits emerging technology but also erodes trust in the broader digital ecosystem,” said Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI). “The alleged actions of Hay and Mayo, who defrauded investors out of millions over several years, highlight the profound harm these schemes cause. These crimes may not involve violence, but they leave countless victims in their wake. HSI remains dedicated to exposing and dismantling cryptocurrency fraud schemes to protect investors and ensure that technological advancements are used to drive progress, not deception.”

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

    If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy and wire fraud counts and a maximum penalty of five years on the stalking count.

    The HSI Baltimore Field Office is investigating the case.

    Assistant United States Attorney Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section and Justice Department Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section, both members of the National Cryptocurrency Enforcement Team (NCET), are prosecuting this case.

    The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets. 

    MIL Security OSI

  • MIL-OSI Security: U.S. Attorney, FBI Announce Federal Charges Against Arizona Man for Sexual Abuse

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Whiteriver man has been charged with two counts of sexual abuse.

    The indictment alleges that between August 1, 2021, and August 31, 2021, Fernando Yatsatie, Jr., 47, a member of the Zuni Pueblo, unlawfully engaged in and attempted to engage in sexual acts using threats and intimidation.

    Yatsatie will remain in custody pending trial, which has not been scheduledIf convicted, Yatsatie faces any term of years up to life in prison.

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

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.

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

    # # #

    MIL Security OSI

  • MIL-OSI Security: Bank General Counsel Pleads Guilty to Offenses Stemming from $7.4 Million Embezzlement Scheme

    Source: Office of United States Attorneys

    JAMES BLOSE, 56, of Fairfield, waived his right to be indicted and pleaded guilty today in New Haven federal court to offenses stemming from a decade-long embezzlement scheme at banks where he served as General Counsel and held other high-ranking positions.

    The announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England; and Brian Tucker, Special Agent in Charge of the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General, Eastern Region.

    According to court documents and statements made in court, from approximately 2013 to January 2022, Blose was an attorney and held high-ranking positions, including General Counsel, at Hudson Valley Bank and Sterling National Bank.  From approximately January 2022, when Webster Bank acquired Sterling National Bank, until February 2023, Blose served as Executive Vice President and General Counsel and Corporate Secretary at Webster Bank.

    From approximately 2013 until Webster Bank discovered his scheme and his employment was terminated in February 2023, Blose defrauded his employers (“The Bank”) in various ways.  In certain commercial loan transactions where The Bank was the lender, Blose fraudulently retained for himself portions of closing costs, including legal fees.  In certain real estate transactions in which The Bank was the seller, Blose retained portions of the sale proceeds for himself.  For some of the real estate transactions, Blose created false documents in order to hide his theft from The Bank.  Blose also stole from The Bank in other ways.

    As part of the scheme, used his attorney trust accounts to make personal expenditures, and to transfer funds to accounts in the names of business entities he created and controlled, and then used those funds for his personal benefit.  Through this scheme, Blose stole approximately $7.4 million from his employers.

    Blose pleaded guilty to one count of bank fraud, which carries a maximum term of imprisonment of 30 years, and one count of engaging in illegal monetary transactions, which carries a maximum term of imprisonment of 10 years.  He is released on a $250,000 bond pending sentencing, which is scheduled for March 13 in Hartford.

    This investigation has been conducted by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General.  Financial crimes investigators from Webster Bank assisted the investigation.

    This case is being prosecuted by Assistant U.S. Attorneys Michael S. McGarry and Ross Weingarten.

    MIL Security OSI

  • MIL-OSI: Ninepoint Partners Announces Estimated December 2024 Cash and Annual Notional Distributions for ETF Series Securities

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Dec. 20, 2024 (GLOBE NEWSWIRE) — Ninepoint Partners LP (“Ninepoint Partners”) today announced the estimated December 2024 cash distributions and annual notional capital gains distributions for its ETF Series securities. The record date for the distributions is December 31, 2024 for all the ETF Series securities listed in the table below. All distributions are payable on January 8, 2025.

    Please note that these are estimated amounts only and have been calculated based upon information as of December 13, 2024.  The final distributions may change due to subscriptions or redemptions activity before the ex-dividend date or other factors.

    For the annual notional capital gains distributions, these will be reinvested in additional units of the respective ETF Series securities and do not include any cash distribution amounts for December. The additional units will be immediately consolidated so that the number of units outstanding following the distribution will equal the number of units outstanding before the distribution.

    The actual taxable amounts of distributions for 2024, including the tax characteristics of the distributions, will be reported to CDS Clearing and Depository Services Inc. in early 2025. Securityholders can contact their brokerage firm for this information.

    The per-unit estimated December distributions are detailed below:

    About Ninepoint Partners

    Based in Toronto, Ninepoint Partners LP is one of Canada’s leading alternative investment management firms overseeing approximately $7 billion in assets under management and institutional contracts. Committed to helping investors explore innovative investment solutions that have the potential to enhance returns and manage portfolio risk, Ninepoint offers a diverse set of alternative strategies spanning Equities, Fixed Income, Alternative Income, Real Assets, F/X and Digital Assets.

    For more information on Ninepoint Partners LP, please visit www.ninepoint.com or please contact us at (416) 943-6707 or (866) 299-9906 or invest@ninepoint.com.

    Ninepoint Partners LP is the investment manager to the Ninepoint Funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation.

    Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

    Please note that distribution factors (breakdown between income, capital gains and return of capital) can only be calculated when a fund has reached its year-end. Distribution information should not be relied upon for income tax reporting purposes as this is only a component of total distributions for the year. For accurate distribution amounts for the purpose of filing an income tax return, please refer to the appropriate T3/T5 slips for that particular taxation year. Please refer to the prospectus or offering memorandum of each Fund for details of the Fund’s distribution policy.

    The payment of distributions and distribution breakdown, if applicable, is not guaranteed and may fluctuate. The payment of distributions should not be confused with a Fund’s performance, rate of return, or yield. If distributions paid by the Fund are greater than the performance of the Fund, then an investor’s original investment will shrink. Distributions paid as a result of capital gains realized by a Fund and income and dividends earned by a Fund are taxable in the year they are paid. An investor’s adjusted cost base will be reduced by the amount of any returns of capital. If an investor’s adjusted cost base goes below zero, then capital gains tax will have to be paid on the amount below zero.

    Sales Inquiries:

    Ninepoint Partners LP
    Neil Ross
    416-945-6227
    nross@ninepoint.com

    The MIL Network